Siemens 2014 Annual Report Download - page 196

108 A. To our Shareholders 131 B. Corporate Governance 171 C. Combined Management Report
172 C. Business and economic environment
187 C. Financial performance system
193 C. Results of operations
205 C. Financial position
210 C. Net assets position

charges of €  million primarily related to grid connections to
offshore wind-farms resulting from transport, installation and
commissioning costs, compared to charges of €  million in
the prior year. The Division reached several material milestones
with respect to its North Sea grid connection projects in fiscal
. Finally, profit development in fiscal  was also held
back by a less favorable revenue mix due to a high proportion
of projects with low or negligible profit margins. In the prior
C... HEALTHCARE
Sector
Year ended September , % Change therein
(in millions of €)   Actual Comparable  Currency Portfolio
Profit 2,027 2,033 0%
Profit margin 16.3% 16.1%
Orders 12,819 13,004 (1)% 3% (4)% 0%
Total revenue 12,429 12,649 (2)% 2% (4)% 0%
External revenue 12,401 12,626 (2)%
therein:
Europe, C.I.S., Africa, Middle East 4,391 4,392 0%
therein Germany 880 903 (2)%
Americas 4,729 4,815 (2)%
Asia, Australia 3,281 3,419 (4)%
1 Excluding currency translation and portfolio effects. 2 Commonwealth of Independent States.
The Healthcare Sector delivered € . billion in profit in fiscal
, close to the level of the prior year. Results in the current
period include burdens on profit from currency effects due to
the greater strength of the euro compared to fiscal . These
unfavorable effects were strongest at the Sector’s imaging and
therapy systems businesses and at Diagnostics, and they more
than offset a €  million positive effect related to the sale of a
particle therapy installation in Marburg, Germany. For compar-
ison, Sector profit in fiscal  was burdened by €  million in
charges associated with the Sector’s “Agenda ” initiative.
Despite negative currency effects, profit at Diagnostics rose
significantly to €  million. For comparison, profit of €  mil-
lion a year earlier was held back by €  million in charges for
the Sector’s “Agenda ” initiative. Purchase price allocation
(PPA) effects related to past acquisitions at Diagnostics were
€  million in fiscal . A year earlier, Diagnostics recorded
€  million in PPA effects.
year, the Division recorded €  million in charges for the
“Siemens ” program. Revenue was down  % on decreases
in all reporting regions, due mainly to selective order intake in
prior periods primarily in the solutions business. Order intake
was down  % year-over-year on decreases in the Americas
and Asia, Australia, held back by negative currency translation
effects. On an organic basis, orders grew  %. Legacy projects
are expected to hold back results going forward.
Revenue and orders for Healthcare in fiscal  declined
slightly year-over-year. Negative currency translation effects
affected reported results for most of the Sector’s businesses,
and also reduced reported revenue and orders in Asia, Australia
and the Americas compared to fiscal . On a comparable
basis, both revenue and orders were up. The book-to-bill ratio
was ., and Healthcare’s order backlog was €  billion at the
end of fiscal . Out of the order backlog as of September ,
, orders of €  billion are expected to be converted into rev-
enue in fiscal  and the remainder in the periods thereafter.
The Diagnostics business reported revenue of € . billion in
fiscal , a  % decrease from € . billion a year earlier.
A clear decline in the Americas was due primarily to headwinds
from currency translation as mentioned above. On a compara-
ble basis, Diagnostics revenue was up  % year-over-year.