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1、 Siemens Report FOR FISCAL 2022Table of contents Combined Management Report Consolidated Financial Statements Responsibility Statement(Siemens Group)Independent Auditors Reports(Siemens Group)Annual Financial Statements Responsibility Statement(Siemens AG)Independent Auditors Report(Siemens AG)Five-
2、Year Summary Compensation Report(including Auditors Report)Report of the Supervisory Board Corporate Governance Statement Notes and forward-looking statements Combined Management Report FOR FISCAL 2022Table of contents Combined Management Report 3 4 4 4 4 4 5 6 6 6 8 9 10 12 12 13 14 14 15 15 16 17
3、17 18 20 22 22 23 25 29 30 33 33 34 34 35 35 35 35 35 37 37 37 1.Organization of the Siemens Group and basis of presentation 2.Financial performance system 2.1 Revenue growth 2.2 Profitability and capital efficiency 2.3 Capital structure 2.4 Liquidity and dividend 2.5 Calculations of EPS pre PPA and
4、 ROCE 3.Segment information 3.1 Overall economic conditions 3.2 Digital Industries 3.3 Smart Infrastructure 3.4 Mobility 3.5 Siemens Healthineers 3.6 Siemens Financial Services 3.7 Portfolio Companies 3.8 Reconciliation to Consolidated Financial Statements 4.Results of operations 4.1 Orders and reve
5、nue by region 4.2 Income 4.3 Research and development 5.Net assets position 6.Financial position 6.1 Capital structure 6.2 Cash flows 7.Overall assessment of the economic position 8.Report on expected developments and associated material opportunities and risks 8.1 Report on expected developments 8.
6、2 Risk management 8.3 Risks 8.4 Opportunities 8.5 Significant characteristics of the internal control and risk management system 9.Siemens AG 9.1 Results of operations 9.2 Net assets and financial position 9.3 Corporate Governance statement 10.Takeover-relevant information(pursuant to Sections 289a
7、and 315a of the German Commercial Code)and explanatory report 10.1 Composition of common stock 10.2 Restrictions on voting rights or transfer of shares 10.3 Legislation and provisions of the Articles of Association applicable to the appointment and removal of members of the Managing Board and govern
8、ing amendment to the Articles of Association 10.4 Powers of the Managing Board to issue and repurchase shares 10.5 Significant agreements which take effect,alter or terminate upon a change of control of the Company following a takeover bid 10.6 Compensation agreements with members of the Managing Bo
9、ard or employees in the event of a takeover bid 10.7 Other takeover-relevant information Combined Management Report31.Organization of the Siemens Group and basis of presentation Siemens is a technology group that is active in nearly all countries of the world,focusing on the areas of automation and
10、digitalization in the process and manufacturing industries,intelligent infrastructure for buildings and distributed energy systems,smart mobility solutions for rail transport,and medical technology and digital healthcare services.Siemens comprises Siemens Aktiengesellschaft(Siemens AG),a stock corpo
11、ration under the Federal laws of Germany,as the parent company,and its subsidiaries.Our Company is incorporated in Germany,with our corporate headquarters situated in Munich.As of September 30,2022,Siemens had around 311,000 employees.As of September 30,2022,Siemens has the following reportable segm
12、ents:Digital Industries,Smart Infrastructure,Mobility and Siemens Healthineers,which together form our“Industrial Business”and Siemens Financial Services(SFS),which supports the activities of our industrial businesses and also conducts its own business with external customers.Furthermore,we report r
13、esults for Portfolio Companies,which comprises businesses that are managed separately to improve their performance.Our reportable segments and Portfolio Companies may do business with each other,leading to corresponding orders and revenue.Such orders and revenue are eliminated on the Group level.Non
14、-financial matters of the Group and Siemens AG Siemens has policies for environmental,employee and social matters,for the respect of human rights,and anti-corruption and bribery matters,among others.Our business model is described in chapters 1 and 3 of this Combined Management Report.Reportable inf
15、ormation that is necessary for an understanding of the development,performance,position and the impact of our activities on these matters is included in this Combined Management Report,in particular in chapters 3 through 7.Forward-looking information,including risk disclosures,is presented in chapte
16、r 8.Chapter 9 includes additional information that is required to be reported in the Combined Management Report related to the parent company Siemens AG.As supplementary information,amounts reported in the Consolidated Financial Statements and the Annual Financial Statements of Siemens AG related to
17、 such non-financial matters,and additional explanations thereto,are included in Notes to Consolidated Financial Statements for fiscal 2022,Notes 17,18,22,26 and 27,and in the Notes to the Annual Financial Statements for fiscal 2022,Notes 16,17,20,21 and 25.In order to inform the users of the financi
18、al reports in a focused manner,these disclosures are not subject to a specific non-financial framework in contrast to the disclosures in our separate“Sustainability report 2022”document,which are based on the standards developed by the Global Reporting Initiative(GRI).Said document also includes det
19、ailed information on DEGREE,Siemens sustainability framework.With DEGREE,Siemens intends to manage and track its progress on selected ambitions in the environmental,social and governance areas.Disclosures in accordance with EU Taxonomy:The key performance indicators in this section were determined b
20、ased on Commission Delegated Regulation(EU)2021/2178 in conjunction with the International Financial Reporting Standards applicable for the Consolidated Financial Statements.Thereby,revenue,capital expenditures and operating expenses were predominantly directly allocated to an economic activity list
21、ed in Delegated Regulation(EU)2020/852;in determining capital expenditures and operating expenses,allocations were also made based on the revenue of the Taxonomy-eligible activities.To avoid double counting,the allocation was always made to one economic activity only.Taxonomy-eligible revenue accoun
22、ted for 20%of revenue according to the Consolidated Statement of Income in the reporting year.In the reporting year,Taxonomy-eligible capital expenditures accounted for 40%of additions(including additions from business combinations)to other intangible assets and property,plant and equipment in accor
23、dance with Note 13 to the Consolidated Financial Statements.Taxonomy-eligible operating expenses accounted for 14%of the corresponding expenses recognized in the Consolidated Financial Statements in the reporting year.The remaining portions of the key performance indicators are not Taxonomy-eligible
24、.Our main Taxonomy-eligible economic activities are derived from the manufacture of low-carbon transport and energy-efficient building technologies(mainly from Mobility and Smart Infrastructure operations),transport infrastructure(from Mobility operations)and the service of energy-efficient building
25、 technologies(from Smart Infrastructure operations),as well as the Groups own real estate portfolio.The majority of Taxonomy-eligible capital expenditures result from the latter economic activity.The above-mentioned economic activities refer to chapters 3,6 and 7 of Annex I of Delegated Regulation(E
26、U)2020/852.Combined Management Report42.Financial performance system 2.1 Revenue growth In the Siemens Financial Framework we aim to achieve a revenue growth range of 5%to 7%per year on a comparable basis over a cycle of three to five years.Our primary measure for managing and controlling our revenu
27、e growth is comparable growth,because it shows the development in our business net of currency translation effects,which arise from the external environment outside of our control,and portfolio effects,which involve business activities which are either new to or no longer a part of the respective bu
28、siness.Currency translation effects are the difference between revenue for the current period calculated using the exchange rates of the current period and revenue for the current period calculated using the exchange rates of the comparison period.For calculating the percentage change year-over-year
29、,this absolute difference is divided by revenue for the comparison period.A portfolio effect arises in the case of an acquisition or a disposition and is calculated as the change year-over-year in revenue related to the transaction.For calculating the percentage change,this absolute change is divide
30、d by revenue for the comparison period.Any portfolio effect is excluded for the 12 months following the relevant transaction after which both current and past reporting periods fully reflect the portfolio change.For orders,we apply the same calculations for currency translation and portfolio effects
31、 as described above.2.2 Profitability and capital efficiency Within the Siemens Financial Framework,we aim to achieve over a cycle of three to five years margins that are comparable to those of our relevant competitors.Therefore,we have defined profit margin ranges for our industrial businesses whic
32、h also consider the profit margins of their respective relevant competitors.Profit margin is defined as profit of the respective business divided by its revenue.For our industrial businesses,profit represents EBITA adjusted for amortization of intangible assets not acquired in business combinations.
33、We have set the following margin ranges:Margin range Digital Industries 17-23%Smart Infrastructure 11-16%Mobility 10-13%Siemens Healthineers 17-21%Siemens Financial Services(ROE after tax)15-20%For Siemens Healthineers,we present the margin range we expect as that companys majority shareholder.In li
34、ne with common practice in the financial services business,our financial indicator for measuring capital efficiency at SFS is return on equity after tax,or ROE after tax.ROE is defined as SFS profit after tax,divided by its average allocated equity.Primary measure for managing and controlling profit
35、 and profitability at the Group level:Net income is the primary driver of basic earnings per share from net income(EPS)as well as of EPS before purchase price allocation accounting(EPS pre PPA)which is used for our capital market communication.EPS pre PPA is defined as basic earnings per share from
36、net income adjusted for amortization of intangible assets acquired in business combinations and related income taxes.As with EPS,EPS pre PPA includes the amounts attributable to shareholders of Siemens AG.We aim to achieve high-single-digit annual growth in EPS pre PPA over a cycle of three to five
37、years.We seek to work profitably and as efficiently as possible with the capital provided by our shareholders and lenders.For purposes of managing and controlling our capital efficiency,we use return on capital employed,or ROCE,as our primary measure in our Siemens Financial Framework.Our goal is to
38、 achieve a ROCE within a range of 15%to 20%over a cycle of three to five years.2.3 Capital structure Sustainable revenue and profit development is supported by a healthy capital structure.Accordingly,a key consideration within the Siemens Financial Framework is to maintain ready access to the capita
39、l markets through various debt products and preserve our ability to repay and service our debt obligations over time.Our primary measure for managing and controlling our capital structure is the ratio of Industrial net debt to EBITDA(continuing operations).This financial measure indicates the approx
40、imate amount of time in years that would be needed to cover Industrial net debt through income from continuing operations,without taking into account interest,taxes,depreciation and amortization.We aim to achieve a ratio of up to 1.5.2.4 Liquidity and dividend We intend to continue providing an attr
41、active return to our shareholders.In the Siemens Financial Framework,we strive for a dividend per share that exceeds the amount for the preceding year,or that at least matches the prior year level.As in the past,we intend to fund the dividend payout from Free cash flow.Our primary measure to assess
42、our ability to generate cash,and ultimately to pay dividends,is the cash conversion rate for the Siemens Group,defined as the ratio of Free cash flow(continuing and discontinued operations)to Net income.Over a cycle of three to five years,we aim to achieve a cash conversion rate of 1 minus the annua
43、l comparable revenue growth rate.At the Annual Shareholders Meeting,the Managing Board,in agreement with the Supervisory Board,will submit the following proposal to allocate the unappropriated net income of Siemens AG for fiscal 2022:to distribute a dividend of 4.25 on each share of no par value ent
44、itled to the dividend for fiscal 2022 existing at the date of the Annual Shareholders Meeting;the remaining amount is to be carried Combined Management Report5forward.Payment of the proposed dividend is contingent upon approval by Siemens shareholders at the Annual Shareholders Meeting on February 9
45、,2023.The prior-year dividend was 4.00 per share.2.5 Calculations of EPS pre PPA and ROCE Calculation of EPS pre PPA Fiscal year(in millions of,shares in thousands,earnings per share in)2022 2021 Net income attributable to shareholders of Siemens AG 3,723 6,161 Plus:Amortization of intangible assets
46、 acquired in business combinations attributable to shareholders of Siemens AG 882 677 Less:Taxes on adjustment (220)(169)(I)Adjusted Net income attributable to shareholders of Siemens AG 4,384 6,668(II)Weighted average shares outstanding 801 802(I)/(II)EPS pre PPA 5.47 8.32 Calculation of ROCE Fisca
47、l year(in millions of)2022 2021 Net income 4,392 6,697 Less:Other interest expenses/income,net1 (939)(761)Plus:SFS Other interest expenses/income 971 834 Plus:Net interest expenses related to provisions for pensions and similar obligations 51 53 Less:Interest adjustments(discontinued operations)5 (1
48、1)Less:Taxes on interest adjustments(tax rate(flat)30%)(27)(34)Plus:Defined Varian-related acquisition effects(after tax)2 365 195(I)Income before interest after tax 4,819 6,973(II)Average capital employed 47,996 46,027(I)/(II)ROCE 10.0%15.2%1 Item Other interest expenses/income,net primarily consis
49、ts of interest relating to corporate debt,and related hedging activities,as well as interest income on corporate assets.2 Effects resulting from purchase price allocation for Varian Medical Systems,Inc.(Varian)which are comprised of amortization of tangible and intangible assets,inventory step-ups,d
50、eferred revenue adjustments and related income taxes.For purposes of calculating ROCE in interim periods,Income before interest after tax is annualized.Average capital employed is determined using the average of the respective balances as of the quarterly reporting dates for the periods under review
51、.Calculation of capital employed Total equity Less:Goodwill and other intangible assets resulting from purchase price allocation related to the Varian acquisition Plus:Long-term debt Plus:Short-term debt and current maturities of long-term debt Less:Cash and cash equivalents Less:Current interest-be
52、aring debt securities Less:Fair value of foreign currency and interest hedges relating to short-and long-term debt Plus:Provisions for pensions and similar obligations Less:SFS debt Plus:Adjustments from assets classified as held for disposal and liabilities associated with assets classified as held
53、 for disposal Less:Adjustment for deferred taxes on net accumulated actuarial gains/losses on provisions for pensions and similar obligations Capital employed(continuing and discontinued operations)Combined Management Report63.Segment information 3.1 Overall economic conditions Global economic devel
54、opment in fiscal 2022 was dominated by three disruptions:the war in Ukraine,the repercussions of the coronavirus pandemic(COVID-19),and the economic slowdown in China.After the strong rebound of economic growth in calendar 2021,in which global gross domestic product(GDP)increased by 5.9%,calendar 20
55、22 is expected to show global GDP increasing by only 2.9%.The post-COVID economic recovery came to a sudden end during calendar 2022.Global economic activity expanded strongly in the second half of calendar 2021 in light of increasing vaccination rates and lifted COVID-19 restrictions as well as rec
56、overing consumer spending.This triggered inflationary pressures,especially in the United States(U.S.)and in Europe.Primary reasons for these inflationary pressures included limitations on the supply of goods and services due to COVID-19 repercussions(logistics bottlenecks,material and component shor
57、tages in the manufacturing sector,labor shortages especially in the service sector),while large stimulus packages and high household savings fueled pent-up demand.In addition,already high energy prices increased significantly and added to surging inflation rates.The war in Ukraine impacted the overa
58、ll economic conditions starting in the first quarter of calendar 2022.Energy prices already soaring in the latter half of 2021 sky-rocketed in the first half of calendar 2022.The tightening of gas flows from Russia to the European Union(EU)resulted in European natural gas prices temporarily increasi
59、ng by as much as ten-fold compared to the prior year.Oil prices also increased significantly global prices for Brent crude oil nearly doubled in March 2022 compared to March 2021.Both over-proportionally hit Germany and the industrial sector,especially energy-intensive industries such as chemicals.B
60、ut due to its very strong start in calendar 2022,the EU economy is still expected to grow by 3.3%in calendar 2022.The war in Ukraine put further pressure on developing economies,especially in the Middle East,Africa,and Turkey,as both Russia and Ukraine were major exporters of grain and fertilizer be
61、fore the war.For emerging markets in aggregate,GDP is estimated to increase by 3.4%in calendar 2022 after it expanded by nearly 7%in 2021.Chinas zero-COVID strategy became even more strict with the emergence of the Delta variant and the highly infectious Omicron variant,resulting in more major lockd
62、owns which burdened economic activity and global supply chains in the second half of calendar 2021.In addition,regulatory restrictions on several high-growth sectors and companies along with a recession in the very important real estate sector weighed on the economy.Hence,Chinas GDP growth is expect
63、ed to slow significantly in calendar 2022,to 3.0%,after it rebounded in calendar 2021 with 8.1%.While energy prices were a major contributor to inflationary pressure,both the U.S.and the EU experienced broader-based price increases.This resulted in a strong response by the Federal Reserve which mass
64、ively tightened monetary policy by starting to reduce money supply(quantitative tightening)and increasing its key interest rate by 300 basis points from March to September 2022.The European Central Bank(ECB)also started to tighten monetary policy to reduce inflation.ECBs interest rate on main refina
65、ncing operations increased by a cumulative 125 basis points in August and September.U.S.inflation(as measured by the consumer price index,or CPI)is currently expected at 8.1%for calendar 2022,with EU inflation at 9%.Producer prices(PPI)are expected to increase even more:by 16.8%in the U.S.and as muc
66、h as 30.4%in the EU,though a large part of the increase in the EU is driven by energy prices:while the overall PPI in September 2022 increased by 41.4%year-over-year,the index excluding energy grew by only 15%year-over-year.As the Federal Reserve went forward with tackling inflation,it was followed
67、by central banks around the world.The appreciation of the U.S.dollar against most other currencies added to inflation outside of the U.S.and put pressure on international financial markets,especially for some emerging countries.Overall,the major economies experienced significant economic disruptions
68、 during calendar 2022.Therefore,GDP in calendar 2022 will grow much more slowly than was expected last year.For advanced countries in aggregate,calendar 2022 GDP is expected to expand by 2.5%.For emerging markets,the increase in calendar 2022 GDP is estimated at 3.4%.The partly estimated figures pre
69、sented here for GDP are based on an S&P Global report dated November 15,2022.3.2 Digital Industries Digital Industries offers a comprehensive product portfolio and system solutions for automation used in discrete and process industries;these offerings include automation systems and software for fact
70、ories,numerical control systems,motors,drives and inverters and integrated automation systems for machine tools and production machines.Digital Industries also provides process control systems,machine-to-machine communication products,sensors(for measuring pressure,temperature,level,flow rate,distan
71、ce or shape)and radio frequency identification systems.Furthermore,Digital Industries offers production and product lifecycle management(PLM)software,and software for simulation and testing of mechatronic systems.These leading software offerings are integrated with an electronic design automation(ED
72、A)software portfolio,and the open,cloud-based industrial Internet of Things(IoT)operating system MindSphere,which connects machines and physical infrastructure to the digital world.All these software offerings are complemented by the Mendix cloud-native low-code application development platform,whic
73、h allows customers to significantly reduce app development times through visual representation of underlying code as well as by digital marketplaces for the global electronics value chain,such as Supplyframe and Pixeom.Digital Industries also provides customers with lifecycle and data-driven service
74、s.Taken together,Digital Industries offerings enable customers to optimize entire value chains from product design and development through production and post-sale services.With its advanced software solutions in particular,Digital Industries supports customers in their evolution towards the“Digital
75、 Enterprise,”resulting in increased flexibility and efficiency of production processes and reduced time to market for new products.The most important customer customermarkets include the automotive industry,the machine building industry,the pharmaceutical and chemicals industry,the food and beverage
76、 industry and the electronics and semiconductor industry.Digital Industries serves its customers through a common regional sales organization spanning all its businesses,using various sales channels depending on the type of customer and industry and also enhancing customer choice across all channels
77、.Changes in customer demand,especially for standard products,are driven strongly by macroeconomic cycles,and can lead to significant short-term fluctuation in Digital Industries profitability.Volume from large contracts in the software business,particularly for EDA,may also result in strong fluctuat
78、ions Combined Management Report7in quarterly volume and profitability.In fiscal 2022,Digital Industries started to transition parts of its software business,particularly PLM,from largely upfront revenue recognition towards Software as a Service(SaaS),which yields more predictable recurring revenue a
79、nd offers growth opportunities by opening access to new customers,especially small and medium-sized companies seeking to reduce costs associated with owning complex IT infrastructure.The transition held back revenue growth rates and profit margin development in the software business in fiscal 2022 a
80、nd Digital Industries expects continued impacts until completion of the transition.Competition with Digital Industries business activities comes primarily from multinational corporations that offer a relatively broad portfolio and from smaller companies active only in certain geographic or product m
81、arkets.Digital Industries sees three trends influencing its business and providing long-term growth opportunities.Producers of investment goods in todays increasingly digital environment must modernize their production capacity,particularly to increase production flexibility and reduce time to marke
82、t.This environment also spurs producers to complement their core products with vertical solutions and service offerings,which their customers either need or want in order to take full advantage of the investment goods.Finally,there is a trend from globalization to regionalization,to support local ec
83、onomic development,to increase supply chain resilience or to better adapt solutions to local needs.This is increasingly accompanied by more differentiated regulatory requirements.Research&Development(R&D)activities at Digital Industries are aimed at helping customers to increase production and resou
84、rce efficiency by merging the real and the digital worlds in a continuous flow of data using cutting-edge technologies such as artificial intelligence(AI),edge computing,cloud technologies,additive manufacturing,and industrial 5G technology.As part of Siemens open digital marketplace Siemens Xcelera
85、tor a business platform that includes a curated portfolio of IoT-enabled hardware,software and digital services from across Siemens and certified third parties and facilitates interactions and transactions between customers,partners and developers Digital Industries is developing Industrial Operatio
86、ns X,a next-generation industrial IoT solution.Industrial Operations X is aimed at bringing together solutions and applications,ranging from sensors and edge computing to the cloud,IoT as a service and low-code development capabilities,as well as including a wide range of ready-to-use apps.Furthermo
87、re,in fiscal 2022,Digital Industries launched the open Industrial Edge Ecosystem where third-party app providers can offer solutions based on the Siemens Industrial Edge platform,an IT platform which enables the scalable deployment of IT technologies and apps in the production environment.Customers
88、thus benefit from a broad range of compatible software components,offered by numerous providers and manufacturers,which they can readily integrate into their manufacturing processes.For example,offerings of the Industrial Edge Ecosystem include an AI-based edge app to increase availability of drives
89、.In fiscal 2022,Digital Industries strengthened its transition to SaaS by introducing a cloud-based version of its NX software(NX X)that combines the advantages of computer aided design software,centralized storage capacity and native collaboration.With its latest advances in additive manufacturing,
90、Digital Industries enables cost-effective bespoke manufacturing of consumer products.Also in fiscal 2022,Digital Industries enabled the transmission of Profinet IO via a private 5G network,which allows industrial data to be transmitted securely across network boundaries in real time for industrial a
91、pplications.This is made possible by the VXLAN(Virtual Extensible LAN)transmission technology in the Scalance 5G routers and security appliances from Digital Industries.Major investments of Digital Industries in fiscal 2022 relate to its own factory automation,motion control and process automation b
92、usinesses,to further automate and digitalize facilities particularly in Germany,China and the Czech Republic.Fiscal year%Change(in millions of)2022 2021 Actual Comp.Orders 25,283 18,427 37%32%Revenue 19,517 16,514 18%13%therein:software business 4,691 4,290 9%0%Profit 3,892 3,360 16%Profit margin 19
93、.9%20.3%Order growth was driven by extraordinarily strong customer demand in Digital Industries major market segments.Orders rose in all businesses including a sharp increase in the factory automation business and substantial growth contributions from the other businesses.Within the software busines
94、s,both EDA and PLM made strong growth contributions due to large contract wins.Revenue growth was mainly driven by the automation businesses.While Digital Industries successfully avoided major supply chain disruptions,shortages for electronics components and raw materials led to extended delivery ti
95、mes for some automation products.Growth in the software business was due mainly to positive currency translation effects.A high rate of customer acceptance of the PLM SaaS transition reduced current license revenue in favor of recurring future subscription revenue.On a geographic basis,orders rose s
96、ubstantially in all three reporting regions and revenue was up by double digits in all regions.Volume growth was led by the Asia,Australia region and included positive currency translation effects.Profit and profitability rose in all automation businesses led by a sharp increase in the motion contro
97、l business.The increases were supported by higher capacity utilization and pricing measures to offset cost inflation.In contrast,profit in the software business declined.This was due mainly to revenue development from the SaaS transition and higher expenses related to cloud-based activities,which we
98、re also influenced by the SaaS transition.Severance charges fell to 64 million from 114 million in the prior year.Digital Industries order backlog rose sharply year-over-year,reaching 14 billion at the end of the fiscal year,of which 11 billion are expected to be converted into revenue in fiscal 202
99、3.In fiscal 2022,markets served by Digital Industries grew clearly.Growth was driven by a further recovery in global manufacturing production,only partly held back by impacts related to the war in Ukraine,lockdown measures and electricity shutdowns in China,and global supply chain and logistics cons
100、traints.Nominal market growth in fiscal 2022 benefited from fast-rising price inflation especially in discrete and process industries,which started to weigh on real demand,especially consumer spending,towards the end of the fiscal year.Markets grew in all three reporting regions,led by Asia,Australi
101、a and the Americas.Overall,markets for discrete industries rose faster while recovery in the more project-related process industries was delayed.Within Digital Industries most important customer markets,growth in the automotive industry was held back by the above-mentioned factors,most notably suppl
102、y chain constraints,which impacted production.Ongoing structural changes in the macroeconomy such as working from home,adoption of e-vehicles,and international trade conflicts are expected to restrain the automotive industrys mid-term growth perspectives.The machine-building industry expanded strong
103、ly,with growth driven by demand in Japan,the U.S.and eastern European countries.The machine-building industry benefited from demand for general investment goods.This development was evident in demand for automation equipment which in addition benefited from the trend towards digitalization.The pharm
104、aceutical and the chemicals industries grew throughout the fiscal year,Combined Management Report8but with slower momentum towards the end of the fiscal year.The food and beverage industry grew steadily throughout the fiscal year,with the beverage industry growing faster than the food industry.Globa
105、l production of electronics and semiconductors experienced strong growth in fiscal 2022,with some moderation during the course of the fiscal year due in part to production lockdowns in China.Market shifts before fiscal 2022 in the semiconductor industry led to global shortages of semiconductors for
106、certain customer segments such as the automotive industry;demand patterns began to normalize at the end of the fiscal year,including more moderate spending on consumer electronics.Supplier price increases,caused mainly by shortages,affected all of the key markets for Digital Industries,and were shar
107、per than usual for a period of economic rebound.For fiscal 2023,Digital Industries primary markets are expected to show strong revenue growth benefiting in part from high order backlogs and price inflation.While growth is expected to be more evenly spread across the three reporting regions than in f
108、iscal 2022,growth momentum is expected to slow down gradually over the course of the fiscal year.Growth expectations for fiscal 2023 are subject to a high level of uncertainty depending among other factors on the development of geopolitical tensions,trade sanctions,energy markets and interest rates.
109、3.3 Smart Infrastructure Smart Infrastructure offers products,systems,solutions,services and software to support a sustainable transition from fossil to renewable energy sources,as well as a transition to smarter,more sustainable buildings and communities.Smart Infrastructures versatile portfolio co
110、nsists of buildings,electrification,and electrical products.Its buildings portfolio addresses the needs of operators,owners,occupants and users of buildings.It spans integrated building management systems and software;heating,ventilation and air conditioning(HVAC)controls;fire safety and security pr
111、oducts and systems;and solutions and services such as energy performance services.With its electrification portfolio,Smart Infrastructure makes grids more resilient,flexible and efficient.Its offerings cover grid simulation,operation and control software;substation automation and protection;medium-v
112、oltage primary and secondary switchgear including sulfur hexafluoride-free(SF6-free)medium-voltage switchgear;and low-voltage switchboards and eMobility charging infrastructure.The electrical products portfolio addresses industrial and building applications.Its offerings include low-voltage switchin
113、g,measuring and control equipment;low-voltage distribution systems and switchgear;and circuit breakers,contactors and switching for medium voltage.In fiscal 2022,Smart Infrastructure acquired Brightly Software Inc.(Brightly),a U.S.-based provider of cloud-based SaaS for asset and maintenance managem
114、ent and for energy and sustainability management.The acquisition strengthens Smart Infrastructures presence in the market for software used to manage built infrastructure.Smart Infrastructures customer and end user base is diverse.It encompasses infrastructure developers,construction companies and c
115、ontractors;owners,operators and tenants of both public and commercial buildings including hospitals,campuses,airports and data centers;companies in process industries such as oil and gas,pharmaceuticals and chemicals;companies in discrete manufacturing industries such as automotive and machine build
116、ing;and utilities and power grid network operators(transmission and distribution).Smart Infrastructure serves its customers through a broad range of channels,including distributors and partners such as panel builders,original equipment manufacturers(OEM)and value-added resellers and installers,all c
117、omplemented by direct sales and through e-commerce channels.Digital marketplaces,such as Siemens Xcelerator,are increasingly important for Smart Infrastructures digital offerings.Smart Infrastructures principal competitors consist mainly of large multinational companies and smaller manufacturers in
118、emerging countries.Its solutions and services business also competes with local players such as system integrators and facility management firms.Smart Infrastructures businesses are impacted by changes in the overall economic environment to varying degrees,depending on the customer segment and offer
119、ing.Demand for Smart Infrastructures electrical and building products offerings is driven strongly by macroeconomic cycles,while demand for its systems and solutions offerings changes more slowly,with a time lag of several quarters.In contrast,demand for service offerings shows only limited influenc
120、e from macroeconomic cycles.Overall,Smart Infrastructure has developed a balanced and resilient business mix with its diversified regional and vertical markets;its range of products,systems,solutions and services;and its participation in both long-and short-cycle markets.To further strengthen the re
121、silience of its portfolio,Smart Infrastructure aims at increasing the share of overall revenue that comes from services.Smart Infrastructure benefits from a number of major trends.These include urbanization,demographic change,decarbonization,and digitalization.Urbanization and demographic change dri
122、ve a need for smarter and more human-centric buildings.Climate change drives the need for decarbonization.This results in an increasing demand for flexible and resilient energy infrastructures including rapid growth in electric mobility and more sustainable buildings.Digitalization is an enabler for
123、 such changes in both buildings and grids,making it possible to develop smarter buildings and manage electricity distribution with a higher share of renewables.The markets served are experiencing shifts that present opportunities where building technologies and electrification meet.Smart Infrastruct
124、ures R&D activities focus on sustainable and decarbonizing offerings for buildings,utilities and industrial customers.It develops digital offerings for the energy market such as for integrating renewable energy into grids.Furthermore,R&D efforts strengthen Smart Infrastructures capabilities to impro
125、ve the sustainability,performance and attractiveness of buildings.Smart Infrastructure is expanding its digital offerings such as cloud solutions using field data from controllers and IoT devices.In June 2022,Smart Infrastructure launched the new software platform Building X,developed in accordance
126、with the principles of openness and modularity of Siemens Xcelerator.Furthermore,it develops technologies for environmentally friendly and increasingly renewable-based energy systems,ranging from climate-friendly SF6-free switchgear for medium voltage to charging solutions for e-mobility.In this reg
127、ard,data from field devices is the basis for intelligent grid control and protection,providing grid stability and flexibility and continuously matching energy supply and demand while protecting grid assets.For electrical distribution systems and industrial plants,Smart Infrastructure continuously dr
128、ives digitalization of its switching and control products with built-in intelligence,connectivity to the cloud,and remote diagnostics and edge computing capability.Smart Infrastructure puts an increasing focus of R&D on the sustainability of its products along the lifecycle,addressing environmentall
129、y friendly designs,materials and processes.To a large extent,its capital expenditures relate to the products businesses.Main investment areas are replacement of fixed assets and further digitalization of factories and technical equipment,with a strong focus on innovation.Combined Management Report9
130、Fiscal year%Change(in millions of)2022 2021 Actual Comp.Orders 20,798 16,071 29%23%Revenue 17,353 15,015 16%10%therein:service business 3,799 3,387 12%7%Profit 2,222 1,729 29%Profit margin 12.8%11.5%Orders at Smart Infrastructure rose by double-digits in all businesses,led by the electrical products
131、 business and the electrification business including a number of larger contract wins.Order growth was highlighted by strong demand from industrial customers,for data centers and for digital building services,and included proactive purchasing by customers.Revenue also rose in all businesses led by t
132、he electrical products business,which operated in strong customer markets.Smart Infrastructure successfully avoided major disruptions from challenging supply chain conditions.On a geographic basis,orders and revenue rose in all three reporting regions.The strongest growth contribution came from the
133、Americas region,driven by the U.S.,while growth in the Asia,Australia region was held back by impacts related to COVID-19 in China.Both order and revenue development included positive currency translation effects.Profit and profitability rose in all businesses,with the strongest increases coming fro
134、m the electrical products business and the buildings business.The increases were due mainly to higher capacity utilization,pricing measures to offset cost inflation and cost savings related to prior execution of Smart Infrastructures competitiveness program.Severance charges,largely associated with
135、the program,fell to 28 million from 47 million a year earlier.In fiscal 2022,Smart Infrastructure recorded a 54 million gain from the sale of a business.These positive effects were only partly offset by COVID-19-related impacts mainly from medical leaves and lockdowns in China.Smart Infrastructures
136、order backlog was 15 billion at the end of the fiscal year,of which 10 billion are expected to be converted into revenue in fiscal 2023.Overall,markets served by Smart Infrastructure grew clearly in fiscal 2022.Market dynamics were influenced by a further recovery from COVID-19-related effects,sever
137、e supply chain and logistics constraints,strong price inflation and effects from the war in Ukraine.On a geographic basis,all reporting regions contributed to growth.Price inflation affected all regions and came in particularly high in the U.S.In China,growth was held back by lockdown measures,which
138、 also impacted growth dynamics in other countries,while Europe was most strongly affected by the war in Ukraine.Grid markets grew above average with market growth driven by demand for integration of energy from renewable resources.Industrial markets grew nearly as fast as grid markets,driven by grow
139、th in the automotive industry among other factors.Growth in the buildings market came in somewhat lower mainly due to weaker growth momentum in commercial building markets.In fiscal 2023,markets served by Smart Infrastructure are expected to grow slightly slower than in fiscal 2022.While growth in r
140、esidential and commercial building markets and some industrial markets is expected to slow down somewhat,demand for data centers and power distribution is expected to be robust.Price inflation is expected to contribute to market growth in fiscal 2023.Overall,market development in fiscal 2023 is expe
141、cted to continue to be influenced by supply chain constraints and effects from the war in Ukraine,including on energy prices.Further impacts could arise from potential lockdown measures in China and geopolitical tensions.3.4 Mobility Mobility combines all Siemens businesses in the area of passenger
142、and freight transportation.Within its rolling stock business,its offerings encompass trains for urban and regional transport such as vehicles for metro systems,trams and light rail,and commuter trains as well as trains and passenger coaches for intercity and long-distance services,such as high-speed
143、 rail.Rolling stock offerings furthermore include locomotives for freight or passenger transport and solutions for automated transportation such as automated people movers.Offerings in its rail infrastructure business include products and solutions for rail automation,such as automatic train control
144、 systems,interlocking,operations control and telematic systems,digital station solutions and railway communication systems,signaling on-board and crossing products and yard and depot solutions;and for electrification such as AC and DC traction power supply,contact lines and network control.With its
145、service business,Mobility provides customer services for rolling stock and rail infrastructure throughout the entire lifecycle,such as maintenance and digital services.In its turnkey business,it bundles consulting,planning,financing,construction,service and operation of complete mobility systems.Mob
146、ilitys software business comprises intermodal solutions,such as platforms for fleet management,route planning,ticketing and payments solutions and data analytics.To enhance these offerings,Mobility at the beginning of fiscal 2022 acquired SQCAP B.V.(Sqills),Netherlands,a provider of cloud-based inve
147、ntory management,reservation,and ticketing software for public transport operators.During fiscal 2022,Mobility divested its road traffic business,Yunex Traffic.Mobility sells its products,systems and solutions through its worldwide network of sales and execution units.The principal customers of Mobi
148、lity are public and state-owned companies in the transportation and logistics sectors,so its markets are driven primarily by public spending.Customers usually have multi-year planning and implementation horizons,and their contract tenders therefore tend to be independent of short-term economic trend
149、s.Large contracts in the rolling stock and the rail infrastructure business are often awarded together with service contracts,which start to generate revenue only after the respective products and solutions have been put in operation,which can be a number of years after the contract award.Mobilitys
150、principal competitors are multinational companies.Consolidation among Mobilitys competitors is continuing and may lead to increased competitive pressure within the rail transport industry and also to fewer sourcing options for rail customers.The main trends driving Mobilitys markets are urbanization
151、,the need to reduce emissions from transportation,and digitalization.Increasing populations in urban centers need daily mobility that is simpler,faster,and more flexible,reliable and affordable.At the same time,cities and national economies face the challenge of cutting CO2 and noise emissions and r
152、educing space requirements and costs of transportation.The pressure on mobility providers to meet all these needs is expected to rise continuously.Furthermore,improving availability,connectivity,and sustainability of rail infrastructures increasingly requires digital solutions,which generates growth
153、 opportunities for providers of such solutions.IoT systems and new software-based solutions such as Mobility as a Service(MaaS)are expected to become major growth enablers for the rail industry.While a significant drop in ridership driven by COVID-19 has strongly impacted mobility operators,overall
154、trends towards urbanization and decarbonization persist unchanged and many countries have been allocating significant funds to rail and public transport operators to address these trends.Combined Management Report10Mobilitys R&D strategy is focused on reducing life-cycle costs of rail infrastructure
155、s and rolling stock,securing system availability,increasing network capacity of rail infrastructures,optimizing the processes of rail operators and improving passenger experience.With Siemens Xcelerator,Mobility intends to make software more modular and increasingly move it to the cloud.At the same
156、time,Mobility intends to enhance connectivity of hardware and software and provide open application programming interfaces(APIs).Thereby Mobility accelerates the pace and impact of digital innovation,which in turn benefits owners,operators,and customers of rail transport.Mobilitys major R&D areas in
157、clude the development of efficient vehicle platforms with optimized lifecycle cost;eco-friendly,alternative power supplies for trains;the Railigent X open application suite for maintenance of rail assets;the Distributed Smart Safe System(DS3),which allows for hardware-independent and cloud-enabled s
158、ignaling;automatic train operation for European Train Control System(ETCS);5G for wireless-based activities;the Mobility Software Suite X for operators and passengers;and cyber security.Mobilitys investments focus mainly on maintaining or enhancing its production facilities,on meeting project demand
159、s and enhancing its depot services.Fiscal year%Change(in millions of)2022 2021 Actual Comp.Orders 13,200 12,696 4%2%Revenue 9,692 9,232 5%3%therein:service business 1,592 1,420 12%7%Profit 794 850(7)%Profit margin 8.2%9.2%Order intake exceeded the strong prior-year level and reached a new record.Mob
160、ility again took in a substantial volume from large orders,nearly on the high level of the prior year.Contract wins in fiscal 2022 were highlighted by an order worth 1.5 billion for high-speed trains in Germany,a number of orders for locomotives,among them a 0.6 billion order for locomotives and ass
161、ociated service in the U.S.,and an order worth 0.3 billion for a train control system from Norway.Order intake a year earlier included among others Mobilitys largest-ever contract in the Americas,worth 2.8 billion,for trainsets and associated services.Revenue rose in all businesses,led by the servic
162、es business and the rail infrastructure business.Growth was partly held back by supplier delays in delivering materials and components,along with effects related to COVID-19 mainly including medical leave for employees.On a geographic basis,revenue growth was driven mainly by the region Europe,Commo
163、nwealth of Independent States(C.I.S.),Africa,Middle East,due particularly to a significant growth contribution from Germany.Profit was burdened by impairments and other charges totaling 0.6 billion for winding down business activities in Russia,among them a 0.2 billion impairment of the entire carry
164、ing amount of an investment accounted for using the equity method.In addition,profit included impacts from supplier delays and COVID-19 effects.These burdens were largely offset by a gain of 0.7 billion from the sale of Yunex Traffic.Severance charges were 27 million,compared to 22 million a year ea
165、rlier.Mobilitys order backlog was 36 billion at the end of the fiscal year,of which 10 billion are expected to be converted into revenue in fiscal 2023.Markets served by Mobility grew moderately in fiscal 2022,supported by long-term trends such as urbanization and decarbonization,though growth dynam
166、ics were held back by effects related to COVID-19 and by material shortages.The market for rolling stock saw large orders across all segments,especially for high-speed trains,commuter trains and locomotives.The rail infrastructure market has seen growth in both urban and mainline segments due to the
167、 renewal and extension of mainline tracks and the ongoing trend towards automatic train protection(ATP),including communications-based train control(CBTC)and ETCS technologies.The service business benefited from an increased installed base at global level and large backlogs in maintenance orders bac
168、klogs in some countries.On a geographic basis,market development in Europe continued to be characterized by awards of mid-size to large orders,particularly in Germany,Denmark and in Switzerland.While demand in the Middle East rose,demand in Africa was held back by ongoing uncertainties related to bu
169、dget constraints and political climates.In the Americas region,customer demand was strongest for urban and mainline transport,especially in the U.S.and Canada.Within the Asia,Australia region,markets saw ongoing rail investments,particularly in China.For fiscal 2023,markets served by Mobility are ex
170、pected to grow significantly with all reporting regions contributing to growth.Market expansion is expected to be supported by a large number of fiscal stimulus and investment programs.Mobility anticipates that rail operators in Europe,particularly in Germany and in the U.K.,will continue making sig
171、nificant investments in rolling stock and advanced rail infrastructure solutions and that customers in the Middle East and Africa will tender large turnkey systems,especially for additional rail lines in Egypt,Saudi Arabia and the United Arab Emirates.Markets in the Americas region are expected to r
172、emain strong,especially due to ongoing investments in urban and mainline transport and large investment programs dedicated to transportation and enhancements of existing infrastructure in the U.S.In Asia,markets in China are also expected to remain strong with investments in high-speed trains,urban
173、transport,freight logistics and rail infrastructure driving growth.Markets in India are expected to grow strongly due to investments in high-speed trains and infrastructure.Despite an adverse short-term impact from COVID-19,rail transport and intermodal mobility solutions are expected to remain a hi
174、gh priority.In emerging countries,rising incomes are expected to result in greater demand for public transport solutions.3.5 Siemens Healthineers Siemens as majority shareholder holds just over 75%of the shares of the publicly listed Siemens Healthineers AG,Germany(Siemens Healthineers).Siemens Heal
175、thineers is a global provider of healthcare solutions and services.It develops,manufactures,and sells a diverse range of innovative diagnostic and therapeutic products and services to healthcare providers.In addition,Siemens Healthineers also provides clinical consulting services,as well as an exten
176、sive range of training and service offerings.This comprehensive portfolio supports customers along the entire care continuum,from prevention and early detection through to diagnosis,treatment,and follow-up care.The customer spectrum ranges from public and private healthcare providers,including hospi
177、tals and hospital systems,public and private clinics and laboratories,universities,physicians/joint medical practices,public health agencies,public and private health insurers,through to pharmaceutical companies and clinical research institutes.The imaging business provides imaging products,services
178、,and solutions as well as digital offerings.Its most important products are devices for magnetic resonance imaging,computed tomography,X-ray,molecular imaging,and ultrasound.The diagnostics business comprises in-vitro diagnostic products and services that are offered to healthcare providers in the f
179、ields of laboratory and point-of-care diagnostics.The Varian business provides innovative,multi-modality cancer care technologies along with solutions and services to oncology departments in hospitals and clinics.The portfolio of the advanced therapies business consists of highly integrated products
180、,solutions,and services across multiple clinical fields that are designed to support image-Combined Management Report11guided minimally invasive treatments,in areas such as cardiology,interventional radiology,and surgery.Competition in the imaging,Varian and advanced therapies businesses consists ma
181、inly of a small number of large multinational companies,while the diagnostics market is fragmented with a variety of global players that compete with each other across market segments and also with several regional players and specialized companies in niche technologies.The business activities of Si
182、emens Healthineers are to a certain extent resilient to short-term economic trends because large portions of its revenue stem from recurring business.They are,however,directly and indirectly dependent on trends in healthcare markets and on developments in health policy,and geopolitical developments
183、around the world.The addressable markets of Siemens Healthineers are shaped by four major trends.The first is demographic,in particular the growing and aging global population.This trend poses major challenges for global healthcare systems and,at the same time,offers opportunities for players in the
184、 healthcare industry as the demand for cost-efficient healthcare solutions continues to intensify.The second trend is economic development in emerging countries,which opens up improved access to healthcare for many people.Significant investment in the expansion of private and public healthcare syste
185、ms will persist,driving overall demand for healthcare products and services and hence market growth.The third trend is the increase in chronic diseases as a consequence of an aging population and environmental and lifestyle-related changes.This trend results in far more patients with multiple morbid
186、ities,putting further pressure on healthcare systems and leading to higher costs;it also increases the need for new ways to detect and treat diseases more timely.The fourth global trend,the transformation of healthcare providers such as hospitals and laboratories,results from a combination of societ
187、al and market forces that are driving healthcare providers to operate and organize their businesses differently.Increasing cost pressure on the healthcare sector is prompting the introduction of new remuneration models for healthcare services,such as value-based rather than treatment-based reimburse
188、ment.Digitalization and artificial intelligence are thereby likely to be key enablers for healthcare providers as they increasingly focus on enhancing the overall patient experience,with better outcomes and overall reduction in cost of care.This development is driven partly by societys increasing re
189、sistance to healthcare costs,payers increasing professionalization,burdens from chronic disease,rapid scientific progress and staff shortages.As a result of these factors,healthcare providers are consolidating into networked structures,resulting in larger clinic and laboratory chains,often operating
190、 internationally,which act increasingly like large corporations.Applying this industrial logic to the healthcare market can lead to systematic improvements in quality,while at the same time reducing costs.R&D activities at Siemens Healthineers are aimed at delivering innovative,sustainable solutions
191、 to its customers while safeguarding and improving its competitiveness.In particular,in the areas of artificial intelligence,sensing technology,and robotics R&D activities were expanded.In addition,Siemens Healthineers harnesses advanced technologies such as AI and data analytics to improve cancer t
192、reatment and expand global access to cancer care.Key applications of sensing technology range from laboratory diagnostic tests via computed tomography detectors and electromagnetic measurement fields in magnetic resonance all the way to ultrasonic transducers.Siemens Healthineers already uses robots
193、 for laboratory assistance,radiation,patient handling,and robotic imaging devices.Siemens Healthineers focuses its investments mainly on enhancing competitiveness and innovation.The main capital expenditures were for spending for factories to expand manufacturing and technical capabilities,in partic
194、ular in the U.S.and China,and for additions to intangible assets,including capitalized development expenses within the Atellica Solution and Central Lab product lines.Fiscal year%Change(in millions of)2022 2021 Actual Comp.Orders 25,556 20,320 26%9%Revenue 21,715 17,997 21%6%Profit 3,369 2,847 18%Pr
195、ofit margin 15.5%15.8%In fiscal 2022,Siemens Healthineers recorded double-digit growth both in orders and revenue,which developed similarly.All businesses contributed to this growth.On a geographic basis,the Americas and Asia,Australia regions recorded substantial growth,both benefiting from strong
196、positive portfolio and currency translation effects.In total,portfolio effects,primarily related to the acquisition of Varian in the third quarter of fiscal 2021,added ten percentage points to order and nine percentage points to revenue growth;additionally,currency translation effects added seven pe
197、rcentage points to order and six percentage points to revenue growth.Profit benefited primarily from strong earnings development in the diagnostics business which was driven by high demand for rapid coronavirus antigen tests.The imaging business again posted strong earnings,which were higher than in
198、 the prior year.Overall profitability was burdened by subsequent measurement effects from purchase price allocation related to the Varian acquisition totaling 0.2 billion and by higher procurement and logistics costs.Severance charges were 71 million in fiscal 2022 and 68 million in fiscal 2021.The
199、order backlog for Siemens Healthineers was 34 billion at the end of the fiscal year,of which 12 billion are expected to be converted into revenue in fiscal 2023.In general,the addressable global markets excluding rapid coronavirus antigen tests grew slightly on a revenue basis in fiscal 2022.From a
200、regional perspective,the Asia,Australia region saw market growth in most businesses;in China,growth opportunities were prevented by COVID-19-related restrictions.In the region Europe,C.I.S.,Africa,Middle East,EU government investment programs,among others,were able to support growth in most business
201、es.In the U.S.,market growth was recorded in most businesses.Globally,overall market development for the imaging business was supported by positive developments in the magnetic resonance imaging and nuclear medicine markets,after demand had already recovered in the prior fiscal year;in contrast,dela
202、ys in revenue recognition due to global supply chain constraints,among other factors,weakened growth.The imaging market is expected to grow moderately overall in fiscal 2023,driven mainly by pent-up demand for major modalities.Within the diagnostics business,the rapid coronavirus antigen test market
203、 experienced a sharp increase;in addition,point-of-care(excluding rapid coronavirus antigen tests)and laboratory diagnostics(excluding molecular diagnostics)recorded ongoing recovery in patient volumes as markets continued to return to normalized levels following COVID-19 lockdowns.The diagnostics m
204、arket is expected to achieve moderate growth in fiscal 2023,excluding COVID-19 testing and molecular diagnostics,and return to pre-COVID-19 market growth across most regions.In Varian markets,product and service innovations led to higher customer investment in the U.S.and Western Europe,while other
205、markets were driven by a need to expand access to oncology equipment and services to underserved population groups and regions.The market for Varian is expected to continue its significant growth.Despite macroeconomic headwinds and global supply chain challenges,the resumption of oncology investment
206、s is expected to increase.For advanced therapies,the market recovered from COVID-19 in all relevant regions.The expectation for advanced therapies is that the market will continue to grow clearly in fiscal 2023,but at a more measured pace than in fiscal 2022.Combined Management Report123.6 Siemens F
207、inancial Services Siemens Financial Services provides financing solutions for Siemens customers as well as other companies in the form of debt and equity investments.Based on its comprehensive financing know-how and specialist technology expertise in the areas of Siemens businesses,SFS supports its
208、customers investments with leasing,lending,working capital and structured financing solutions and offers a broad range of equipment and project financing.In addition,SFS supports Siemens industrial businesses with financial advisory services and via a joint go-to-market that includes SFSs risk manag
209、ement expertise,such as to assess the risk profiles of projects or business models.Furthermore,SFS collaborates with Siemens industrial businesses to co-develop new digital business models and enables its customers to drive sustainable growth through smart financing solutions.Recent examples include
210、 pay-per-use and pay-for-outcome models that give customers more financial flexibility.Fiscal year(in millions of)2022 2021 Earnings before taxes(EBT)498 512 therein:equity business 269 49 ROE(after taxes)15.6%15.5%Sep 30,Sep 30,(in millions of)2022 2021 Total assets 33,263 30,384 Earnings before ta
211、xes were affected by an increase of expenses for credit risk provisions compared to fiscal 2021 and for impairments on assets in the debt business.Therein impacts of 0.2 billion were recorded in connection with the sale of the financing and leasing business in Russia at the end of fiscal 2022.Decrea
212、sed results from the debt business were nearly offset by a sharply improved earnings contribution from the equity business,which was driven by gains from fair value measurements and sales of investments,including an offshore wind-farm project divested for a gain of 0.1 billion,and from energy-relate
213、d investments in connection with rising prices in global energy markets.The increase in total assets since the end of fiscal 2021 was driven by positive currency translation effects.Net cash from operations(defined as the sum of cash flows from operating and investing activities)amounted to(616)mill
214、ion compared to 105 million in fiscal 2021.In fiscal 2022 and fiscal 2021,net cash from operations comprised Free cash flow of 985 million and 820 million,respectively,and remaining cash flows from investing activities,including from change in receivables from financing activities,of(1,601)million a
215、nd(715)million,respectively.SFS is de-risking its business profile by reducing exposure to energy-related equity investments.This has the additional benefit of more tightly focusing SFSs business scope and capital allocation on areas of intense domain know-how closely aligned with Siemens customers
216、and markets,particularly for Digital Industries,Smart Infrastructure and Mobility.Accordingly,SFS is influenced by the business development of the markets served by our industrial businesses,among other factors,including macroeconomic effects like inflation or recession which could impact the credit
217、 risk of customers.In addition to its high level of diversification across industries,SFS has a strong regional footprint in investment-grade countries,with the highest share in the U.S.SFS intends to maintain a highly diversified portfolio across regions,while participating in the strong economic d
218、evelopment of selected Asian markets.3.7 Portfolio Companies Portfolio Companies comprise businesses which deliver a broad range of customized and application-specific products,software,solutions,systems and services for different industries including oil and gas,chemical,mining,cement,logistics,ene
219、rgy,marine,water and fiber.Unrealized potential within these businesses requires adjustment in their approach using defined measures including internal re-organization,digitalization,cost improvements,and optimizing procurement,production and service activities.After achieving certain threshold perf
220、ormance targets,businesses may be transferred to one of Siemens industrial businesses,combined with an external business from the same industry,sold or placed into an external private equity partnership.During fiscal 2022,Siemens sold its mail and parcel-handling business(formerly part of Siemens Lo
221、gistics)to the Krber Group and its at-equity investment in Valeo Siemens eAutomotive GmbH to Valeo GmbH.Siemens also reached an agreement in May 2022 to sell its Commercial Vehicles business to Meritor,Inc.Closing of the transaction was at the beginning of fiscal 2023.Taking these divestments into c
222、onsideration,Portfolio Companies consists mainly of three fully consolidated,separately managed units.Large Drives Applications,which offers electric motors,converters and solutions for mining,is being carved out to increase its entrepreneurial freedom and thereby unlock its full potential.Siemens L
223、ogistics,offers sorting technology and solutions,focused on baggage and cargo handling at airports.The third fully consolidated unit,Siemens Energy Assets,comprises certain remaining regional business activities of the former Gas and Power segment;as part of the Siemens Energy carve-out these activi
224、ties remained with Siemens due to country-specific regulatory restrictions or economic considerations.Demand within the industries served by Portfolio Companies mainly shows a delayed response to changes in the overall economic environment.The results are strongly dependent,however,on customer inves
225、tment cycles in their key industries.In commodity-based industries such as oil and gas or mining,these cycles are driven mainly by commodity price fluctuations rather than changes in produced volumes.The heterogonous industrial customer base of the fully consolidated units requires a dedicated sales
226、 approach based on in-depth understanding of specific industries and customer requests,resulting in the use of various sales and marketing channels for Portfolio Companies.Combined Management Report13 Fiscal year%Change(in millions of)2022 2021 Actual Comp.Orders 3,995 3,516 14%15%Revenue 3,234 3,05
227、8 6%8%Profit 1,520(84)n/a Profit margin 47.0%(2.8)%Despite supply chain constraints,volume increased primarily due to Large Drives Applications,Siemens Energy Assets and the airport business of Siemens Logistics.The profit was driven by the two disposals mentioned above:a gain of 1.1 billion from th
228、e sale of the mail and parcel-handling business and a revaluation gain of 0.3 billion in connection with the sale of the equity investment in Valeo Siemens eAutomotive GmbH.For comparison,the loss in fiscal 2021 was due mainly to negative results in the equity investment.Additionally,Portfolio Compa
229、nies recorded lower severance charges of 20 million,down from 74 million in fiscal 2021.Portfolio Companies order backlog was 4 billion at the end of fiscal 2022,of which 3 billion are expected to be converted into revenue in fiscal 2023.Although the broad range of businesses is operating in diverse
230、 markets,overall the main markets served by Portfolio Companies are generally impacted by uncertainties regarding geopolitical and economic developments which tend to increase customer caution regarding purchasing decisions.However,ongoing recovery is expected to continue in most end-customer vertic
231、al markets in fiscal 2023.3.8 Reconciliation to Consolidated Financial Statements Profit Fiscal year(in millions of)2022 2021 Siemens Energy Investment (2,911)(396)Siemens Real Estate 118 94 Innovation (190)(207)Governance (582)(751)Centrally carried pension expense (113)(170)Amortization of intangi
232、ble assets acquired in business combinations (990)(738)Financing,eliminations and other items (474)452 Reconciliation to Consolidated Financial Statements (5,141)(1,717)The result for Siemens Energy Investment was strongly influenced by an impairment of 2.7 billion on Siemens 35%stake in Siemens Ene
233、rgy AG.The negative result also included Siemens share of Siemens Energys after-tax loss and,in addition,expenses from amortization of assets resulting from purchase price allocation due to the initial recognition of the investment at fair value in September 2020.The increase in Amortization of inta
234、ngible assets acquired in business combinations related mainly to the acquisition of Varian by Siemens Healthineers.Financing,eliminations and other items included impacts totaling 0.5 billion at Corporate Treasury,resulting from the sale of Siemens financing and leasing business in Russia at the en
235、d of fiscal 2022.Further negative effects included a revaluation loss of 0.3 billion on the stake in Thoughtworks Holding,Inc.(the prior year included a gain of 0.3 billion on this stake)as well as a loss of 0.1 billion resulting from applying hyperinflation accounting related mainly to Trkiye.These
236、 effects were partly offset by a gain of 0.5 billion in connection with an investment accounted for using the equity method mainly due to its fair value measurement.For comparison,fiscal 2021 included gains of 0.4 billion related to the transfers of assets to Siemens Pension-Trust e.V.in Germany and
237、 expenses of 0.1 billion from revised estimates related to provisions for a legacy project.Combined Management Report144.Results of operations 4.1 Orders and revenue by region Currency translation effects added five percentage points each to order and revenue growth,respectively.Portfolio transactio
238、ns,in particular the acquisition of Varian by Siemens Healthineers in the third quarter of fiscal 2021,added three percentage points to order and two percentage points to revenue growth year-over-year.The ratio of orders to revenue(book-to-bill)for Siemens in fiscal 2022 was 1.24.The order backlog w
239、as 102 billion as of September 30,2022.Orders(location of customer)Fiscal year%Change(in millions of)2022 2021 Actual Comp.Europe,C.I.S.,Africa,Middle East 42,373 34,311 23%22%therein:Germany 15,046 12,118 24%24%Americas 25,646 20,474 25%8%therein:U.S.21,563 17,555 23%5%Asia,Australia 20,990 16,589
240、27%15%therein:China 10,831 9,029 20%8%Siemens(continuing operations)89,010 71,374 25%17%therein:emerging markets1 24,139 19,208 26%17%As defined by the International Monetary Fund.Despite a continuing complex macroeconomic environment influenced by energy shortages and availability concerns stemming
241、 from the war in Ukraine,high inflation and effects associated with COVID-19,orders related to external customers rose in all four industrial businesses year-over-year with Digital Industries,Smart Infrastructure and Siemens Healthineers recording substantial order growth.The broad-based increase in
242、 emerging markets was driven by China and,to a lesser degree,India.In the Europe,C.I.S.,Africa,Middle East region,order intake increased in all four industrial businesses.Order growth was led by substantial increases in Digital Industries and Mobility.Smart Infrastructure and Siemens Healthineers al
243、so recorded strong order growth year-over year.In Germany,Mobility posted sharp growth due to a higher volume from large orders that included a 1.5 billion order for high-speed trains.Digital Industries and Smart Infrastructure also posted double-digit growth,while orders for Siemens Healthineers de
244、clined due mainly to lower volume from rapid coronavirus antigen tests.Order intake in both the Americas region and in the U.S.showed a similar pattern:Smart Infrastructure,Digital Industries and Siemens Healthineers recorded double-digit growth,while orders in Mobility declined sharply on a lower v
245、olume from large orders which in the prior year included a 2.8 billion order in the U.S.In addition,order intake both in the region and in the U.S.was subject to significant positive currency translation effects,as well as strong portfolio effects which related primarily to the acquisition of Varian
246、.In the Asia,Australia region,order intake was up on double-digit increases in the majority of industrial businesses,with sharp growth at Digital Industries.The pattern of order development in China was largely the same as for the region.Overall,order intake both in the region and in China benefited
247、 clearly from positive currency translation effects.Revenue(location of customer)Fiscal year%Change(in millions of)2022 2021 Actual Comp.Europe,C.I.S.,Africa,Middle East 33,481 31,138 8%6%therein:Germany 11,961 11,249 6%6%Americas 20,680 16,312 27%10%therein:U.S.17,241 13,521 28%10%Asia,Australia 17
248、,816 14,815 20%10%therein:China 9,557 8,232 16%5%Siemens(continuing operations)71,977 62,265 16%8%therein:emerging markets 20,249 17,651 15%6%As defined by the International Monetary Fund.Revenue related to external customers rose in all four industrial businesses year-over-year,with the highest con
249、tributions coming from Siemens Healthineers.Digital Industries and Smart Infrastructure recorded significant increases,while Mobility posted moderately higher revenue year-over-year.The revenue increase in emerging markets was driven by strong demand in China and,to a lesser degree in India.Revenue
250、in Europe,C.I.S.,Africa,Middle East increased with contributions from all four industrial businesses,led by significant growth at Digital Industries.Within the region,Germany showed clear growth driven by double-digit growth at Mobility and Digital Industries,while revenue at Siemens Healthineers de
251、clined significantly mainly due to lower volume from rapid coronavirus antigen tests.In the Americas and in the U.S.,revenue was up in all four industrial businesses with Siemens Healthineers,driven by a high demand from rapid coronavirus antigen tests,Smart Infrastructure and Digital Industries rep
252、orting double-digit growth.As with orders,revenue was subject to strong positive currency translation effects and portfolio effects which related primarily to the acquisition of Varian.Combined Management Report15In the Asia,Australia region,all four industrial businesses contributed to the revenue
253、increase.As in the region,in China,the strong revenue growth was driven by Digital Industries,which recorded substantial growth.Revenue growth both in the region and in China benefited from strong positive currency translation effects.4.2 Income Fiscal year (in millions of,earnings per share in)2022
254、 2021%Change Digital Industries 3,892 3,360 16%Smart Infrastructure 2,222 1,729 29%Mobility 794 850(7)%Siemens Healthineers 3,369 2,847 18%Industrial Business 10,277 8,786 17%Profit margin Industrial Business 15.1%15.0%Siemens Financial Services 498 512(3)%Portfolio Companies 1,520(84)n/a Reconcilia
255、tion to Consolidated Financial Statements (5,141)(1,717)(199)%Income from continuing operations before income taxes 7,154 7,496(5)%Income tax expenses(2,741)(1,861)(47)%Income from continuing operations 4,413 5,636(22)%Income(loss)from discontinued operations,net of income taxes(21)1,062 n/a Net inc
256、ome 4,392 6,697(34)%Basic EPS 4.65 7.68(40)%EPS pre PPA 5.47 8.32(34)%ROCE 10.0%15.2%As a result of the developments described in chapter 3,Income from continuing operations before income taxes decreased by 5%.Severance charges for continuing operations were 272 million,of which 190 million were in
257、Industrial Business.In fiscal 2021,severance charges for continuing operations were 410 million,of which 251 million were in Industrial Business.Income from continuing operations decreased by 22%.The tax rate in fiscal 2022 was 38%(fiscal 2021:25%),substantially impacted by the nontax-deductible imp
258、airment of the stake in Siemens Energy AG.Following the war in Ukraine,Siemens decided to exit business activities in Russia.Subsequent to this decision,Income from continuing operations was burdened by negative effects totaling 1.3 billion related to these activities primarily at Mobility,SFS and C
259、orporate Treasury.Income from discontinued operations,net of income taxes in fiscal 2021 included primarily a gain of 0.9 billion from the sale of Flender GmbH.The decrease in Basic EPS and in EPS pre PPA reflects the decrease of Net income attributable to Shareholders of Siemens AG,which was 3,723
260、million in fiscal 2022 compared to 6,161 million in fiscal 2021.The impairment of our stake in Siemens Energy AG burdened ROCE by 5.3 percentage points,resulting in a declined ROCE year-over-year which is below the target range set in our Siemens Financial Framework.4.3 Research and development In f
261、iscal 2022,we reported research and development expenses of 5.6 billion,compared to 4.9 billion in fiscal 2021.The resulting R&D intensity,defined as the ratio of R&D expenses and revenue,was 7.8%,as in fiscal 2021.Additions to capitalized development expenses amounted to 0.3 billion as in the prior
262、 year.As of September 30,2022 and 2021,Siemens worldwide held approximately 43,600 granted patents in its continuing operations.On average,we had 46,900 R&D employees in fiscal 2022.Our research and development activities are ultimately geared to developing innovative,sustainable solutions for our c
263、ustomers and our businesses while also strengthening our own competitiveness.Joint implementation by the operating units and Technology,our central R&D department,ensures that research activities and business strategies are closely aligned with one another,and that all units benefit equally and quic
264、kly from technological developments.Siemens core technologies have been determined to be critical for our Companys long-term success and that of our customers and have been refocused in fiscal 2022 in eleven technology areas:additive manufacturing and materials,cybersecurity and trust,data analytics
265、 and artificial intelligence,power electronics,simulation and digital twin,sustainable energy and infrastructure,automation,integrated circuits and electronics,connectivity and edge,software systems and processes,and user experience.We advance technologies also through our open innovation concept.We
266、 work closely with scholars from leading universities,research institutions and academic start-ups,not only under bilateral cooperation agreements but also in publicly funded collective projects.Our focus here is on our strategic research partners and in particular the Siemens Research and Innovatio
267、n Ecosystems,which we maintain at 16 locations worldwide.Siemens global venture capital unit,Next47,provides capital to help start-ups expand and scale.It serves as the creator of next-generation businesses for Siemens by building,buying and partnering with innovative companies at any stage.Next47 i
268、s focused on anticipating how emerging technologies will influence our end markets.This foreknowledge enables our Company and our customers to grow and thrive in the age of digitalization.Combined Management Report165.Net assets position Sep 30,(in millions of)2022 2021%Change Cash and cash equivale
269、nts 10,465 9,545 10%Trade and other receivables 16,701 15,518 8%Other current financial assets 9,696 7,985 21%Contract assets 7,559 6,645 14%Inventories 10,626 8,836 20%Current income tax assets 1,432 1,795(20)%Other current assets 1,935 1,751 10%Assets classified as held for disposal 413 223 85%Tot
270、al current assets 58,829 52,298 12%Goodwill 33,861 29,672 14%Other intangible assets 12,196 10,827 13%Property,plant and equipment 11,733 11,023 6%Investments accounted for using the equity method 4,955 7,539(34)%Other financial assets 25,903 22,964 13%Deferred tax assets 2,459 2,865(14)%Other asset
271、s 1,565 2,183(28)%Total non-current assets 92,673 87,074 6%Total assets 151,502 139,372 9%Our total assets at the end of fiscal 2022 were influenced by positive currency translation effects of 10.7 billion(particularly affecting goodwill,other intangible assets and other financial assets),primarily
272、involving the U.S.dollar.Both other current financial assets and other financial assets increased due mainly to higher loans receivable at SFS.The latter line item rose also due to increased positive fair values of derivative financial instruments,partly offset by effects related to the sale of Siem
273、ens financing and leasing business in Russia.Inventories increased in all industrial businesses,with the build-up most evident at Siemens Healthineers,Digital Industries and Smart Infrastructure.While the currency translation effects mentioned above resulted in an increase of goodwill and other inta
274、ngible assets,another major factor was the acquisition of Brightly.The increase of other intangible assets resulted also from the acquisition of Sqills.For further information see Note 3 in Notes to Consolidated Financial Statements for fiscal 2022.The impairment on Siemens 35%stake in Siemens Energ
275、y was the main factor for the decrease of investments accounted for using the equity method.Deferred tax assets decreased due mainly to income tax effects related to remeasurement of defined benefits plans.The decrease in other assets was driven mainly by lower net defined benefit assets,primarily f
276、rom effects of asset ceiling.Combined Management Report176.Financial position 6.1 Capital structure Sep 30,(in millions of)2022 2021%Change Short-term debt and current maturities of long-term debt 6,658 7,821(15)%Trade payables 10,317 8,832 17%Other current financial liabilities 1,616 1,731(7)%Contr
277、act liabilities 12,049 9,876 22%Current provisions 2,156 2,293(6)%Current income tax liabilities 2,381 1,809 32%Other current liabilities 7,448 7,628(2)%Liabilities associated with assets classified as held for disposal 61 10 200%Total current liabilities 42,686 40,000 7%Long-term debt 43,978 40,879
278、 8%Provisions for pensions and similar obligations 2,275 2,839(20)%Deferred tax liabilities 2,381 2,337 2%Provisions 1,857 1,723 8%Other financial liabilities 1,867 679 175%Other liabilities 1,654 1,925(14)%Total non-current liabilities 54,011 50,381 7%Total liabilities 96,697 90,381 7%Debt ratio 64
279、%65%Total equity attributable to shareholders of Siemens AG 48,895 44,160 11%Equity ratio 36%35%Non-controlling interests 5,910 4,831 22%Total liabilities and equity 151,502 139,372 9%The decrease in short-term debt and current maturities of long-term debt was due mainly to repayment of euro and U.S
280、.dollar instruments totaling 6.1 billion.This was partly offset by reclassifications of long-term instruments totaling 4.5 billion.Contract liabilities increased in all industrial businesses,with the build-up most evident at Siemens Healthineers,Digital Industries and Mobility.Current income tax lia
281、bilities increased mainly due to future tax payments resulting from the sale of Siemens mail and parcel-handling business,among other divestments.Long-term debt increased due primarily to the issuance of euro instruments of 5.0 billion and currency translation effects for bonds issued in the U.S.dol
282、lar and British pound.Set against this were mainly decreases from the above-mentioned reclassifications.Provisions for pensions and similar obligations decreased mainly due to a higher discount rate.This effect was partially offset by a negative return on plan assets and inflation-related adjustment
283、s.The increase of other financial liabilities resulted primarily from negative fair values of derivative financial instruments,which declined further.The main factors for the increase in total equity attributable to shareholders of Siemens AG were 3.7 billion in net income attributable to shareholde
284、rs of Siemens AG;positive other comprehensive income,net of income taxes,of 5.8 billion resulting mainly from currency translation,partly offset by negative effects from remeasurements of defined benefit plans.The increase was partly offset by dividend payments of 3.2 billion(for fiscal 2021)and the
285、 repurchases of 14,185,791 treasury shares totaling 1.6 billion(including commission to a commissional bank).Capital structure ratio Our capital structure ratio as of September 30,2022 decreased to 1.0 from 1.5 a year earlier.The change was due to a decrease in Industrial net debt and a higher EBITD
286、A.Debt and credit facilities As of September 30,2022,we recorded,in total,44.8 billion in notes and bonds,2.7 billion in loans from banks,0.1 billion in other financial indebtedness and 3.0 billion in lease liabilities.Notes and bonds were issued mainly in the U.S.dollar and euro,and to a lesser ext
287、ent in the British pound.We have credit facilities totaling 7.5 billion which were unused as of September 30,2022.For further information about our debt see Note 16 in Notes to Consolidated Financial Statements for fiscal 2022.For further information about the functions and objectives of our financi
288、al risk management see Note 25 in Notes to Consolidated Financial Statements for fiscal 2022.Combined Management Report18Off-balance-sheet commitments As of September 30,2022,the undiscounted amount of maximum potential future payments related primarily to credit and performance guarantees amounted
289、to 9.8 billion.This included primarily Siemens obligations from performance and credit guarantees in connection with the Siemens Energy business,for which Siemens has reimbursement rights towards Siemens Energy.In addition to these commitments,there are contingent liabilities of 0.4 billion which re
290、sult mainly from other guarantees,legal proceedings and from joint and several liabilities of consortia.Other guarantees include 0.1 billion in connection with the Siemens Energy business,for which Siemens has reimbursement rights towards Siemens Energy.Irrevocable loan commitments amounted to 4.0 b
291、illion.A considerable portion of these commitments resulted from asset-based lending transactions,meaning that the respective loans can be drawn only after the borrower has provided sufficient collateral.For further information about our commitments and contingencies see Note 21 in Notes to Consolid
292、ated Financial Statements for fiscal 2022.Share buyback The share buyback program announced on June 24,2021 with a volume of up to 3 billion ending September 15,2026,at the latest,began on November 15,2021.This buyback is executed based on the authorization provided by the Annual Shareholders Meetin
293、g on February 5,2020.In fiscal 2022,Siemens repurchased 14,185,791 shares under this share buyback program.6.2 Cash flows Fiscal year(in millions of)2022 Cash flows from operating activities Net income 4,392 Change in operating net working capital 537 Other reconciling items to cash flows from opera
294、ting activities-continuing operations 5,392 Cash flows from operating activities-continuing operations 10,322 Cash flows from operating activities-discontinued operations(81)Cash flows from operating activities-continuing and discontinued operations 10,241 Cash flows from investing activities Additi
295、ons to intangible assets and property,plant and equipment (2,084)Acquisitions of businesses,net of cash acquired(2,207)Purchase of investments and financial assets for investment purposes(1,404)Change in receivables from financing activities of SFS(1,100)Other disposals of assets 4,327 Cash flows fr
296、om investing activities-continuing operations(2,467)Cash flows from investing activities-discontinued operations(23)Cash flows from investing activities-continuing and discontinued operations(2,490)Cash flows from financing activities Purchase of treasury shares(1,565)Re-issuance of treasury shares
297、and other transactions with owners(305)Issuance of long-term debt 4,969 Repayment of long-term debt(including current maturities of long-term debt)(6,663)Change in short-term debt and other financing activities 455 Interest paid(824)Dividends paid to shareholders of Siemens AG(3,215)Dividends attrib
298、utable to non-controlling interests(354)Cash flows from financing activities-continuing operations(7,502)Cash flows from financing activities-discontinued operations(1)Cash flows from financing activities-continuing and discontinued operations(7,502)All industrial businesses recorded cash inflows fr
299、om operating activities which exceed their profit,with the highest contribution from Digital Industries.Cash inflows from changes in operating net working capital were driven by Mobility.Cash outflows from acquisitions of businesses,net of cash acquired,were due mainly to the acquisitions of Brightl
300、y by Smart Infrastructure for 1.5 billion,including the settlement of debt,and Sqills by Mobility for 0.5 billion.Cash outflows for purchase of investments and financial assets for investment purposes primarily included additions of assets eligible as central bank collateral and payments for debt or
301、 equity investments.Cash outflows from change in receivables from financing activities of SFS related primarily to SFS debt business.Cash inflows from other disposals of assets mainly included proceeds of 1.1 billion from the sale of the mail and parcel-handling business by Portfolio Companies and 0
302、.9 billion from the sale of Yunex Traffic by Mobility,as well as repayments of loans and disposals of assets eligible as central bank collateral.Cash outflows from the re-issuance of treasury shares and other transactions with owners were driven by the purchase of Siemens Healthineers AG treasury sh
303、ares.Combined Management Report19Cash inflows from the change in short-term debt and other financing activities mainly included cash inflows related to the settlement of financial derivatives used to hedge currency exposure in our financing activities and from new bank loans,partly offset by cash ou
304、tflows related to commercial paper.Cash outflows for dividends attributable to non-controlling interests mainly included dividends paid to the shareholders of Siemens Healthineers AG.With our ability to generate positive operating cash flows from continuing and discontinued operations of 10.2 billio
305、n in fiscal 2022,our total liquidity(defined as cash and cash equivalents plus current interest-bearing debt securities)of 11.7 billion,our unused lines of credit,and our credit ratings at year-end,we believe that we have sufficient flexibility to fund our capital requirements.Also in our opinion,ou
306、r operating net working capital is sufficient for our present requirements.Cash conversion rate Fiscal year 2022 Fiscal year 2021(in millions of)Continuing operations Discontinued operations Continuing and discontinued operations Continuing operations Discontinued operations Continuing and discontin
307、ued operations Cash flows from operating activities 10,322(81)10,241 10,109(113)9,996 Additions to intangible assets and property,plant and equipment (2,084)(2,083)(1,730)(29)(1,759)(I)Free cash flow 8,238(81)8,157 8,379(142)8,237(II)Net income 4,392 6,697(I)/(II)Cash conversion rate 1.86 1.23 The c
308、ash conversion rate increased sharply primarily due to lower net income,which was burdened by a non-cash impairment of 2.7 billion on our stake in Siemens Energy AG.Investing activities Additions to intangible assets and property,plant and equipment from continuing operations totaled 2.1 billion in
309、fiscal 2022.Within the industrial businesses,ongoing investments related mainly to technological innovations;maintaining,extending and digitalizing our capacities for designing,manufacturing and marketing new solutions;improving productivity;and replacements of fixed assets.These investments amounte
310、d to 1.5 billion in fiscal 2022.The remaining portion related mainly to Siemens Real Estate,including significant amounts for projects such as new office buildings in Germany.Siemens Real Estate is responsible for uniform and comprehensive management of Company real estate worldwide(except for Sieme
311、ns Healthineers)and supports the industrial businesses and corporate activities with customer-specific real estate solutions.With regard to capital expenditures for continuing operations,we expect a significant increase in fiscal 2023.In the coming years,up to 0.6 billion are to be invested in Sieme
312、nsstadt Square.This project initiated in fiscal 2019 aims to transform Siemens existing industrial area in Berlin into a modern urban district supporting a diverse range of purposes,including strengthening key technologies.Further investments are planned in relation to Siemens Campus Erlangen.In add
313、ition,we continue to invest in attractive innovation fields through Next47,our global venture capital unit.Combined Management Report207.Overall assessment of the economic position Fiscal 2022 was marked by geopolitical and economic turmoil,in particular by the war in Ukraine and its global repercus
314、sions,which further exacerbated already existing economic problems in many countries and which also affected Siemens.As a consequence of the war,Siemens decided to exit business activities in Russia.Despite strong global efforts in combating COVID-19,the pandemic continued to impact economic develop
315、ment worldwide,resulting in lockdowns particularly in China and affecting global supply and logistics chains.Our focus has been on successfully managing in this complex environment.In fiscal 2022,we saw accelerated demand in particular for our offerings in the areas of automation,digitalization,reso
316、urce efficiency and decarbonization.We expect them to continue to be growth drivers in the coming years.During the fiscal year,we made further progress in sharpening our business portfolio.On the divestment side,we sold the road-traffic business Yunex Traffic,our share in Valeo Siemens eAutomotive a
317、nd the mail and parcel-handling business of Siemens Logistics.On the acquisition side,we strengthened our industrial businesses through the acquisition of Sqills,a provider of cloud-based inventory management,reservation,and ticketing software for public transport operators.This acquisition enhances
318、 Mobilitys existing offerings for increasing the availability,capacity and utilization of public transportation.We also strengthened Smart Infrastructures presence in the market for the software used to manage built infrastructure through the acquisition of Brightly,a U.S.-based provider of cloud-ba
319、sed Software as a Service(SaaS)for asset and maintenance management and for energy and sustainability management.As a significant further step in implementing our digitalization strategy,in June 2022 we launched Siemens Xcelerator,a digital business platform that includes a curated portfolio of IoT-
320、enabled hardware,software and digital services from across Siemens and from certified third parties.Siemens Xcelerator facilitates interactions and transactions between customers,partners and developers and thus enables acceleration of the digital transformation of our customers of all sizes in indu
321、stry,buildings,power transmission grids and mobility.Siemens was very successful in fiscal 2022 despite the complex geopolitical and economic environment mentioned above.Many of our key customer industries including automotive,machine building,pharmaceuticals,chemicals,electronics,cloud services and
322、 public transport kept growing and we continued to successfully avoid major supply chain disruptions.However,tight supply and logistics chains led to extended delivery times for some automation products,while effects related to COVID-19,mainly including medical leave for employees,impacted some of o
323、ur own production capacity.Our Industrial Business again achieved excellent results,particularly in Digital Industries,Smart Infrastructure and Siemens Healthineers.Results at Mobility were strongly burdened by negative effects for winding down business activities in Russia.Outside Industrial Busine
324、ss,exiting financing and leasing activities in Russia resulted in further charges,burdening results in Reconciliation to Consolidated Financial Statements and SFS.Also outside Industrial Business,a significant decline in the market value of Siemens Energy AG led to an impairment of our stake in the
325、company;as a consequence,after the third quarter of fiscal 2022 we had to revise the forecast provided in our Combined Management Report for fiscal 2021 for EPS pre PPA to include the earnings effect of the impairment.Orders rose 25%year-over-year to 89.0 billion,for a book-to-bill ratio of 1.24,thu
326、s fulfilling our expectation of a ratio above 1.All our four industrial businesses increased orders year-over-year.Order growth was led by substantial increases at Digital Industries and Smart Infrastructure.Orders at Siemens Healthineers also rose substantially and included new orders from the acqu
327、isition of Varian.Mobility,which won large contracts in both periods under review,among them an order worth 1.5 billion for high-speed trains in Germany in fiscal 2022,increased order intake moderately year-over-year.Overall,order growth benefited from positive currency translation effects.Revenue w
328、as also higher in all our industrial businesses,rising to 72.0 billion,a 16%increase year-over-year,which included positive currency translation effects.Digital Industries,Smart Infrastructure and Siemens Healthineers contributed double-digit growth.Revenue growth at Digital Industries was driven ma
329、inly by the automation businesses,while in its software business a high rate of customer acceptance of the PLM SaaS transition reduced current license revenue in favor of recurring future subscription revenue.Revenue at Smart Infrastructure rose on contributions from all businesses,led by the electr
330、ical products business.At Siemens Healthineers,revenue also grew in all businesses and included positive portfolio effects.Revenue at Mobility rose moderately,as revenue development was held back by supplier delays in delivering materials and components and by effects related to COVID-19.Excluding c
331、urrency translation and portfolio effects,revenue for Siemens grew 8.2%.We thus exceeded the forecast provided in our Combined Management Report for fiscal 2021,which was to achieve mid-single-digit comparable revenue growth,and also exceeded our subsequent guidance provided in the Half-year Financi
332、al Report 2022,which was to achieve 6%to 8%in comparable revenue growth.Profit Industrial Business rose 17%to a record-high 10.3 billion.All industrial businesses except Mobility increased their profit year-over-year.The strongest increase came from Smart Infrastructure on improvements in all its bu
333、sinesses.Higher profit at Siemens Healthineers included another strong contribution from the rapid coronavirus antigen testing business in the diagnostics business.Profit growth at Digital Industries was driven by the automation businesses,only partly offset by a decline in profit in the software business due mainly to higher expenses related to cloud-based activities.Profit at Mobility came in lo