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Combined Management Report

low or negligible margins. The Division recorded €  million in
severance charges in fiscal . In fiscal , the Division
took charges totaling €  million related to two high voltage
direct current (HVDC) transmission line projects in Canada. It
also recorded charges of €  million in fiscal  primarily
related to grid connections to offshore wind-farms in the North
Sea, which were handed over to the customer in fiscal .
A.3.2.4 BUILDING TECHNOLOGIES
Fiscal year % Change
(in millions of €) 2015 2014 Actual Comp.
Orders 6,099 5,587 9% 2%
Revenue 5,999 5,569 8% 1%
Profit 553 511 8%
Profit margin 9.2% 9.2%
Due largely to positive currency translation effects, orders and
revenue for Building Technologies grew in all regions, particu-
larly the Americas and Asia, Australia. The Division further in-
creased its productivity and continued to improve its business
mix to include a larger share of higher-margin product and
service businesses year-over-year. These factors contributed to
a clear increase in profit and the Division kept its profitability
stable year-over-year despite impacts from a substantial appre-
ciation of the Swiss franc early in the second quarter of the
fiscal year and €  million in severance charges.
A.3.2.5 MOBILITY
Fiscal year % Change
(in millions of €) 2015 2014 Actual Comp.
Orders 10,262 9,280 11% 6%
Revenue 7,508 7,249 4% (1)%
Profit 588 532 11%
Profit margin 7.8% 7.3%
Mobility again won a number of large orders, driving order
growth year-over-year. Contract wins in fiscal  included an
order worth € . billion for regional trains and maintenance in
Germany and a € . billion long-term order for maintenance in
Russia. For comparison, large orders in fiscal  included a
contract worth € . billion for two driverless subway-lines in
Saudi Arabia. Revenue for Mobility grew moderately compared
to the prior fiscal year. The Division’s rail infrastructure and
turnkey project businesses increased revenue year-over-year in
every quarter. In contrast, the Division’s rolling stock busi-
nesses generated lower revenue in the second half of fiscal
 due to timing of large rail projects following completion of
older projects while new large projects are beginning to ramp
up. This held back full-year revenue development for Mobility
overall. On a geographic basis, revenue growth was stron-
gest in Asia, Australia. Revenue and order development ben-
efited strongly from currency translation effects. In fiscal ,
Mobility continued its solid project execution. Profit for the
Divi sion rose significantly year-over-year, despite €  million in
severance charges. The profit improvement was driven by a
more favorable business mix compared to fiscal , particu-
larly including a higher share from the rail infrastructure busi-
ness. For comparison, profit in the prior fiscal year benefited
from a €  million net effect from the release of accruals
related to the “Siemens ” program.
A.3.2.6 DIGITAL FACTORY
Fiscal year % Change
(in millions of €) 2015 2014 Actual Comp.
Orders 10,014 9,233 8% 3%
Revenue 9,956 9,201 8% 3%
Profit 1,738 1,681 3%
Profit margin 17.5% 18.3%
The softening market environment for production equipment,
particularly including the industrial deceleration in China during
fiscal , limited growth opportunities for Digital Factory’s
high-margin factory automation business, which reported flat
revenue and orders on a comparable basis. Conditions were
more favorable for the Division’s software and motion control
businesses, which delivered clear comparable growth in both
revenue and orders. On a regional basis, orders and revenue in-
creased in all three reporting regions, led by Asia, Australia and
the Americas, due largely to positive currency translation ef-
fects. Despite currency tailwinds, profitability was held back by
the less favorable revenue mix and higher expenses for R & D
and selling targeted at future growth. In addition, Division profit
included €  million in severance charges for the fiscal year.
Beginning with fiscal , the Division includes the geared
motors segment that was previously reported in the Process
Industries and Drives Division. In addition, minor business ac-
tivities of the Division were bundled centrally and are reported
within Corporate Items. If these changes had already been
effective in fiscal , profit margin would have been . %.