Siemens 2015 Annual Report Download - page 15

Combined Management Report 
A.3.2.7 PROCESS INDUSTRIES AND DRIVES
Fiscal year % Change
(in millions of €) 2015 2014 Actual Comp.
Orders 9,337 9,968 (6)% (10)%
Revenue 9,894 9,645 3% (3)%
Profit 536 773 (31)%
Profit margin 5.4% 8.0%
The weak market environment for process industries in fiscal
 was particularly evident in commodity-related markets and
those influenced by low oil prices. As a result, the Division saw
a sharp decrease in orders in its oil & gas and marine business
and a moderate order decline in its large drives business, due
mainly to a lower volume from large orders. Reported revenue
increased in nearly all businesses, driven by currency trans-
lation effects. In the Division’s largest business, large drives,
revenue was flat and comparable revenue decreased moder-
ately. On a regional basis, the order decline was due largely to a
double-digit decrease in Europe, C. I. S., Africa, Middle East and
lower orders in Asia, Australia. Reported revenue increased in all
three regions, however, in the Americas and in Asia, Australia
growth was driven by favorable currency translation effects. De-
spite currency tailwinds, fiscal  profit margin declined, due
in part to ongoing operational challenges in the large drives and
the oil & gas and marine businesses. In addition, profitability
was held back by a warranty charge of €  million in the large
drives business and €  million in severance charges for the
Divi sion overall. Beginning with fiscal , parts of the Divi-
sion’s business activities are reported within other Divisions,
as previously described for the Power and Gas and the Digital
Factory Division. If these changes had already been effective in
fiscal , profit margin would have been . %.
A.3.2.8 HEALTHCARE
Fiscal year % Change
(in millions of €) 2015 2014 Actual Comp.
Orders 13,349 12,126 10% 3%
Revenue 12,930 11,736 10% 3%
Profit 2,184 2,072 5%
Profit margin 16.9% 17.7%
All businesses posted order and revenue growth, with the
largest increase coming from the imaging and therapy sys-
tems business. All regions contributed to volume growth and
benefited from currency translation effects, most notably in the
Americas. Profit growth was driven mainly by the imaging and
therapy systems business and benefited from currency tail-
winds mainly due to the greater strength of the US$ compared
to fiscal . In fiscal , Healthcare recorded €  million in
severance charges and a €  million gain from the divestment
of the microbiology business. For comparison, profit in fiscal
 included a €  million positive effect related to the sale of
a particle therapy installation in Germany.
A.3.2.9 FINANCIAL SERVICES (SFS)
(in millions of €)
Fiscal year
2015 2014
Income before income taxes 600 466
ROE (after taxes) 20.9% 18.1%
Sep 30,
(in millions of €) 2015 2014
Total assets 24,970 21,970
SFS recorded a higher income contribution from the equity
business, primarily relating to a net gain in connection with the
sale of renewable energy projects. Higher interest results asso-
ciated with growth in total assets were largely offset by a higher
level of credit hits related mainly to business in China. Despite
substantial early terminations of financings, total assets have
increased since the end of fiscal , including positive cur-
rency translation effects.
A.3.2.10 RECONCILIATION TO CONSOLIDATED
FINANCIAL STATEMENTS
Profit
Fiscal year
(in millions of €) 2015 2014
Centrally managed portfolio activities 714 280
Siemens Real Estate 205 242
Corporate items (709) (446)
Centrally carried pension expense (440) (393)
Amortization of intangible assets
acquired in business combinations (543) (498)
Eliminations, Corporate Treasury
and other reconciling items (366) (48)
Reconciliation to Consolidated
Financial Statements (1,138) (862)