1、 Siemens Report for fiscal 2023 Table of reports 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 2023 Table of contents Combined Management Report 3 4 4 4 4 4 5 6 6 6 8 9 10 11 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 38 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

4、 and 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

5、revenue 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 development

6、s 8.2 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 2

7、89a 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 go

8、verning 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 Managin

9、g Board or employees in the event of a takeover bid 10.7 Other takeover-relevant information 11.EU Taxonomy disclosure Combined Management Report 3 1.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

10、 on the areas of automation and 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 Aktiengesell

11、schaft(Siemens AG),a stock corporation 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 30,2023,Siemens had around 320,000 employees.As of September 30,2023,Siemens h

12、as the following reportable segments: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 c

13、ustomers.Furthermore,we report results 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 e

14、liminated on Group level.Non-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 Mana

15、gement Report.Reportable information 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 disclo

16、sures,is presented in chapter 8.Chapter 9 includes additional information that is required to be reported in the Combined Management Report related to the parent company Siemens AG.EU Taxonomy disclosures are outlined in chapter 11.As supplementary information,amounts reported in the Consolidated Fi

17、nancial Statements and the Annual Financial Statements of Siemens AG related to such non-financial matters,and additional explanations thereto,are included in Notes to Consolidated Financial Statements for fiscal 2023,Notes 17,18,22,26 and 27,and in the Notes to the Annual Financial Statements for f

18、iscal 2023,Notes 16,17,20,21 and 25.In order to inform the users of the financial 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 2023”document,which are based on the standards de

19、veloped by the Global Reporting Initiative(GRI).Said document also includes detailed 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.Combined Management Report 4

20、 2.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 revenue growth is comparable growth,because

21、 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 business.Currency translation effects a

22、re 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,this absolute difference is divided

23、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 divided by revenue for the comparison perio

24、d.Any portfolio effect is excluded for the twelve 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 as described above.2.2 Profitabi

25、lity 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 which also consider the profit margin

26、s 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.We have set the following margin

27、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 line with common practice in the fi

28、nancial 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 and profitability at Group level

29、: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 net income adjusted for amortization

30、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 years.We seek to work profitably and

31、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 achieve a ROCE within a range of 15%

32、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 capital markets through various debt produc

33、ts 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 approximate amount of time in years that wo

34、uld 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 attractive return to our shareholders.In

35、the Siemens Financial Framework,we strive for a dividend per share that exceeds the amount for the preceding year,or at least matches it.As in the past,we intend to fund the dividend payout from Free cash flow.Our primary measure to assess our ability to generate cash,and ultimately to pay dividends

36、,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 annual comparable revenue growth rate.At the Annual Shareholders

37、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 2023:to distribute a dividend of 4.70 on each share of no par value entitled to the dividend for fiscal 2023 existing at the date o

38、f the Annual Shareholders Meeting;the remaining amount is to be carried Combined Management Report 5 forward.Payment of the proposed dividend is contingent upon approval by Siemens shareholders at the Annual Shareholders Meeting on February 8,2024.The prior-year dividend was 4.25 per share.2.5 Calcu

39、lations of EPS pre PPA and ROCE Calculation of EPS pre PPA Fiscal year(in millions of,shares in thousands,earnings per share in)2023 2022 Net income attributable to shareholders of Siemens AG 7,949 3,723 Plus:Amortization of intangible assets acquired in business combinations attributable to shareho

40、lders of Siemens AG 773 882 Less:Taxes on adjustment (193)(220)(I)Adjusted Net income attributable to shareholders of Siemens AG 8,529 4,384(II)Weighted average shares outstanding 792 801(I)/(II)EPS pre PPA 10.77 5.47 Calculation of ROCE Fiscal year(in millions of)2023 2022 Net income 8,529 4,392 Le

41、ss:Other interest expenses/income,net1 (1,075)(939)Plus:SFS Other interest expenses/income 957 971 Plus:Net interest expenses related to provisions for pensions and similar obligations 97 51 Less:Interest adjustments(discontinued operations)5 Less:Taxes on interest adjustments(tax rate(flat)30%)6 (2

42、7)Plus:Defined Varian-related acquisition effects(after tax)2 251 365(I)Income before interest after tax 8,765 4,819(II)Average capital employed 47,002 47,996(I)/(II)ROCE 18.6%10.0%1 Item Other interest expenses/income,net primarily consists of interest relating to corporate debt,and related hedging

43、 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,deferred revenue adjustments and related income taxes.For purp

44、oses 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.Calculation of capital employed Total equity Less:Goodwill a

45、nd 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-bearing debt securities Less:Fair value of foreign currency and

46、 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 for disposal Less:Adjustment for deferred taxes on net accum

47、ulated actuarial gains/losses on provisions for pensions and similar obligations Capital employed(continuing and discontinued operations)Combined Management Report 6 3.Segment information 3.1 Overall economic conditions Overall,calendar 2023 was characterized by many headwinds for the global economy

48、.Global economic development continued to slowly recover from the negative shocks of the previous years:the coronavirus pandemic(COVID-19)with its disruptions on global demand and supply chains;war in Ukraine and the following commodity price explosions,especially for European energy;spiraling infla

49、tion and severe financial tightening which caused some turbulence in the banking sector and financial markets.After calendar 2022,in which global gross domestic product(GDP)increased by 3.1%,calendar 2023 is expected to show global GDP increasing by 2.6%,which shows a remarkable resilience of the gl

50、obal economy,given the number of big negative shocks of the previous year.In the post-pandemic world,consumption patterns of households continued to normalize.In particular,the shift to goods from services triggered by COVID-19 ended and then reversed,with a strong rebound of the service sector incl

51、uding tourism,and a normalization of goods demand.In addition,in light of much higher interest rates many firms started to reduce their inventory levels,which they had previously elevated as a precautionary measure to ensure production and delivery during periods of supply chain bottlenecks.Accordin

52、gly,both global goods demand and trade were significantly weaker in calendar 2023.These trends were primary contributors for the significant slowdown of the Chinese economy during calendar 2023,after it started very dynamically in the first quarter of calendar 2023 following lifting of severe COVID-

53、19 lockdowns.Another main contributor for the slowdown was the intensification of the countrys real estate crisis.Hence,Chinas GDP is expected to grow by only 5%in calendar 2023,which is regarded as low because under multiple lockdowns in calendar 2022,China delivered GDP growth of only 3%and some c

54、atching-up in 2023 was expected.The U.S.economy was a positive surprise.Although monetary policy was substantially tightened and the main policy interest rate was increased to 5.5%,consumption and investment were strong and GDP is expected to expand by 2.5%in calendar 2023.In particular the labor ma

55、rket was robust and unemployment remained at historic lows.Despite the strong economy,inflation and core inflation rates declined substantially.By end of calendar 2023,consumer price inflation is expected to be approximately 3%,after it reached nearly 6.5%at the end of calendar 2022.Receding global

56、commodity and energy prices and the dissolvement of supply chain bottlenecks both helped ease inflation while tighter monetary policy had the desired effect of anchoring inflation expectations.This helped the U.S.avoid a price-wage-price spiral which could have led to structurally higher inflation r

57、ates.While the U.S.showed stronger economic growth than expected,the European Union(E.U.)experienced the difficulties that were widely expected.The drastic increase of energy prices in calendar 2022,a result of the war in Ukraine,had a severe negative impact,especially on energy-intensive industries

58、.Strong increases in inflation rates led the European Central bank to increase the main policy interest rate to 4.5%which weighed on fixed investment,especially in the real estate sector.Moreover,the global manufacturing and trade slowdown mentioned above weighed on the E.U.,due in particular to the

59、 high concentration of manufacturing and export industries in Germany,the regions largest economy.GDP growth in calendar 2023 is expected to be 0.4%in the E.U.and-0.4%in Germany.Only the service sector,in particular tourism,supported the overall E.U.economy.The partly estimated figures presented her

60、e for GDP are based on an S&P Global report dated October 15,2023.3.2 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 factories,numer

61、ical control systems,servo 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,distance or

62、 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 supplemented by an electronic design automation(EDA)sof

63、tware portfolio;the Mendix cloud-native low-code application development platform,which allows customers to significantly reduce app development times through visual representation of underlying code;and digital marketplaces for the global electronics value chain,such as Supplyframe and Pixeom.Digit

64、al Industries also provides customers with lifecycle and data-driven services.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,

65、Digital Industries supports customers in their evolution towards the“Digital Enterprise,”resulting in increased flexibility and efficiency of production processes and reduced time to market for new products.The most important customer markets include the automotive industry,the machine-building indu

66、stry,the pharmaceutical and chemicals industry,the food and beverage 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

67、 and industry and also enhancing customer choice across all channels.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 softw

68、are business,particularly for EDA,may also result in strong fluctuations in quarterly volume and profitability.In fiscal 2023,Digital Industries continued to transition parts of its software business,particularly PLM,from largely upfront revenue recognition towards Software as a Service(SaaS),which

69、yields more predictable recurring revenue and 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 developmen

70、t in the software business in fiscal 2023 and 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 act

71、ive only in certain geographic or product markets.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 prod

72、uction flexibility and reduce time to market.This environment also spurs producers to complement their core products with vertical solutions and service Combined Management Report 7 offerings,which their customers either need or want in order to take full advantage of the investment goods.Finally,th

73、ere is a trend from globalization to regionalization,to support local economic 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 In

74、dustries are aimed at innovative ways to merge the real and digital worlds with a continuous flow of data,so that customers can improve their products,production and resource efficiency.Digital Industries innovations incorporate artificial intelligence(AI),edge computing,SaaS and software-defined co

75、ntrol,among other advanced technologies.As part of Siemens open digital marketplace Siemens Xcelerator a business platform that includes a curated portfolio of internet-of-things-enabled hardware,software and digital services from across Siemens and certified third parties and facilitates interactio

76、ns and transactions between customers,partners and developers Digital Industries in fiscal 2023 introduced Industrial Operations X,an open and interoperable portfolio for automating and operating industrial production.Industrial Operations X focuses on integrating IT capabilities such as AI,low-code

77、 programming,edge computing,and cloud computing with automation technology and digital services.Through various collaborations,Digital Industries is developing industrial-grade AI solutions.With Intrinsic,an Alphabet company,Digital Industries collaborates to accelerate the integration of AI-based r

78、obotics and automation technology.Digital Industries and Microsoft are harnessing generative AI to help industrial companies drive innovation and efficiency across the entire product lifecycle.Also in fiscal 2023,Digital Industries introduced several innovations based on cloud and edge technologies

79、such as Simcenter Cloud HPC,which provides instant-on,rapidly scalable cloud-based high performance computing for complex simulation studies,hosted on Amazon Web Services;and Industrial Edge Management System for Kubernetes clusters,which addresses IT users in production and aims to save IT resource

80、s,energy,and costs.Major investments of Digital Industries in fiscal 2023 relate to its own factory automation,motion control and process automation businesses,to further automate and digitalize facilities particularly in Germany,China and Singapore.Fiscal year%Change(in millions of)2023 2022 Actual

81、 Comp.Orders 20,620 25,283(18)%(17)%Revenue 21,919 19,517 12%15%therein:software business 5,067 4,691 8%10%Profit 4,947 3,892 27%Profit margin 22.6%19.9%Following extraordinary demand in fiscal 2022,which included proactive customer purchasing,orders at Digital Industries came in lower in its automa

82、tion businesses.The short-cycle factory automation and the motion control businesses were affected most strongly due particularly to destocking at customers.These declines were partly offset by significant growth in the software business,due to large contract wins in both the PLM and the EDA busines

83、ses.Revenue rose on increases in all businesses due in part to conversion from the order backlog which had expanded significantly in the previous fiscal year.The strongest revenue growth contributions came from the factory automation and the process automation businesses.Overall,growth in the automa

84、tion businesses was supported by improved availability of components year-over-year.Revenue growth in the software business was led by the EDA business while year-over-year growth in PLM was held back by the transition to SaaS.On a geographic basis,orders remained stable in the Americas region,but c

85、ame in lower in the region Europe,C.I.S.,Africa,Middle East and in the region Asia,Australia due mainly to weaker demand in China.Revenue grew in all regions with the strongest contribution coming from the region Europe,C.I.S.,Africa,Middle East.Profit and profitability at Digital Industries rose on

86、 strong improvements in all automation businesses,supported by higher capacity utilization and a more favorable business mix including improved availability of components for high-margin products.Profit in the software business declined due to increased expenses related to cloud-based activities inc

87、luding severance charges,which for Digital Industries overall rose to 109 million,up from 64 million in the prior year.At the beginning of fiscal 2024,business activities in the areas of low-voltage and geared motors and motor spindles,previously part of Digital Industries motion control business,we

88、re transferred to Portfolio Companies.If the transfer to Portfolio Companies had already existed at the beginning of fiscal 2023,Digital Industries would have posted orders of 19.387 billion,revenue of 20.636 billion,profit of 4.833 billion and a profit margin of 23.4%.At the beginning of fiscal 202

89、4,Digital Industries order backlog amounted to 11 billion,of which 8 billion are expected to be converted into revenue in fiscal 2024.In fiscal 2023,markets served by Digital Industries overall grew significantly.However,after a strong start,growth momentum increasingly slowed over the course of the

90、 fiscal year.This was particularly evident in China.On a geographic basis,all regions contributed to growth,led by the regions Americas and Europe,C.I.S.,Africa,Middle East.While global supply chain constraints eased,high price inflation led central banks to increase interest rates,which together wi

91、th high energy costs impacted manufacturing industries.This impacted predominantly consumer-and building-related industries whereas production of investments goods still benefited from converting high order backlogs into current revenue.The entire manufacturing industry experienced a destocking of i

92、nventories as a countereffect of proactive ordering in the previous fiscal year.This was most evident in distributor channels and resulted in a significant decline in orders for automation equipment.Discrete industries,which are closer to consumer spending than process industries,were impacted earli

93、er and more strongly than process industries,which are more project-based.The global automotive industry recovered throughout the year following a weak prior year,and benefited from improved supply chain conditions.Production of electric vehicles continued to increase.On a geographic basis,China,Jap

94、an,the U.S.and countries of the European Union saw a strong catchup of production mainly in the first half of the fiscal year.The machine-building industry grew strongly in the first half of fiscal 2023 but growth in major countries such as China,Germany,Japan and countries of the European Union cam

95、e to a halt or market volume even declined in the second half of the fiscal year due to less favorable investment conditions caused by rising interest rates and a more cautious investment sentiment in consumer industries.Within the pharmaceutical and the chemicals industries,the pharmaceutical indus

96、try grew throughout the fiscal year,but with slower momentum towards the end of the fiscal year.In contrast,production in the chemicals industries declined in fiscal 2023.This was particularly evident within the countries of the European Union due mainly to high energy costs.The food and beverage in

97、dustry grew strongly at the beginning of the fiscal year,driven by strong price increases.In the second half of the fiscal year,growth slowed considerably,reflecting weaker consumer spending.The market for electronics and semiconductors declined markedly at the beginning of fiscal 2023 but began to

98、stabilize during the second half of the fiscal year.The decline,which was particularly evident in countries such as Taiwan and Korea with a focus on semiconductor production,was due among other factors to shrinking consumer Combined Management Report 8 demand following unusually high demand during t

99、he COVID-19 pandemic.For fiscal 2024,markets served by Digital Industries are expected to grow markedly slower than in fiscal 2023.While industrial software markets are expected to grow clearly,short-cycle markets served by Digital Industries are expected to contract slightly.Among other factors,reb

100、alancing of supply chains,trade conflicts,effects from geopolitical tensions,cautious consumer spending and downsizing of inventories,mainly in distribution channels,are expected to weigh on market growth.3.3 Smart Infrastructure Smart Infrastructure offers products,systems,solutions,services and so

101、ftware to support the global transition from fossil to renewable energy sources,and the associated transition to smarter,more sustainable buildings and communities.Smart Infrastructures versatile portfolio consists of buildings,electrification,and electrical products.Its buildings portfolio addresse

102、s the needs of operators,owners,occupants and users of buildings.It spans integrated building management systems and software;heating,ventilation and air conditioning controls;fire safety and security products and systems;and solutions and services such as energy performance services.With its electr

103、ification portfolio,Smart Infrastructure makes grids more resilient,flexible and efficient.Its offerings cover grid simulation,operation and control software;substation automation and protection;medium-voltage primary and secondary switchgear including fluorinated gas-free(F-gas-free)medium-voltage

104、switchgear;and low-voltage switchboards and eMobility charging infrastructure.The electrical products portfolio addresses industrial and building applications.Its offerings include low-voltage switching,measuring and control equipment;low-voltage distribution systems and switchgear;and circuit break

105、ers,contactors and switching for medium voltage.Smart Infrastructures customer and end user base is diverse.It encompasses infrastructure developers,construction companies and contractors;owners,operators and tenants of both public and commercial buildings including hospitals,campuses,airports and d

106、ata centers;companies in process industries such as oil and gas,pharmaceuticals and chemicals;companies in discrete manufacturing industries such as automotive and machine building;and utilities and power grid network operators(transmission and distribution).Smart Infrastructure serves its customers

107、 through a broad range of channels,including direct sales organizations,distributors and partners such as panel builders,original equipment manufacturers and value-added resellers and installers.To address more complex customer requirements,Smart Infrastructure uses its dedicated sales forces within

108、 its country organization.Furthermore,Smart Infrastructure provides e-commerce platforms or marketplaces where customers can directly place orders on-line,either via a web shop or via electronic interfaces,and sells its broad range of digital offerings and connected devices via Siemens Xcelerator.Th

109、ese digital sales channels and e-commerce platforms are becoming increasingly important and Smart Infrastructure therefore is continuously strengthening its digital omni-channel marketing and e-commerce platforms.Smart Infrastructures principal competitors consist mainly of large multinational compa

110、nies and smaller manufacturers in 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

111、 on the customer segment and offering.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 off

112、erings shows only limited influence 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 ma

113、rkets.To further strengthen the resilience of its portfolio,Smart Infrastructure aims to increase 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.Urbaniz

114、ation and demographic change drive a need for smarter and more human-centric buildings.Climate change drives the need for decarbonization and digitalization.This results in an increasing demand for flexible and resilient energy infrastructures including rapid growth in electric mobility and more sus

115、tainable buildings.Digitalization is an enabler for 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 tech

116、nologies and electrification meet.Smart Infrastructures R&D activities focus on sustainable and decarbonizing offerings for buildings,utilities and industrial customers.Smart Infrastructure develops digital offerings for stable operation of electrical grids with a high share of renewable energy.In t

117、his regard,data from field devices is the basis for intelligent grid control and protection,providing grid flexibility and continuously matching energy supply and demand while protecting grid assets.Furthermore,it develops technologies for environmentally friendly and increasingly renewable-based en

118、ergy systems,ranging from climate-friendly F-gas-free switchgear for medium voltage to charging solutions for e-mobility and grid integration of green hydrogen production.R&D efforts also strengthen Smart Infrastructures capabilities to improve the sustainability,performance and attractiveness of bu

119、ildings.Smart Infrastructure is expanding its digital offerings such as cloud solutions using field data from controllers and IoT devices and the business platform Building X on the principles of openness and modularity of Siemens Xcelerator.These and other offerings are enhanced using AI and large

120、language models.For electrical distribution systems and industrial plants,Smart Infrastructure continuously drives digitalization of its switching and control products with connectivity to the cloud,remote diagnostics and edge computing capability.Smart Infrastructure puts an increasing focus of R&D

121、 on the sustainability of its products along the lifecycle,incorporating environmentally 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

122、 and technical equipment,with a strong focus on innovation.Fiscal year%Change(in millions of)2023 2022 Actual Comp.Orders 22,333 20,798 7%7%Revenue 19,946 17,353 15%15%therein:service business 4,243 3,856 10%11%Profit 3,074 2,222 38%Profit margin 15.4%12.8%Combined Management Report 9 Smart Infrastr

123、ucture showed very strong performance in fiscal 2023.Orders increased clearly compared to the high prior-year level,which included proactive purchasing by customers.Growth was mainly driven by the electrification business and included a number of larger contract wins from data center,semiconductor,p

124、ower distribution and battery manufacturing customers.Revenue rose in all businesses,with the strongest growth contributions coming from the electrification and the electrical products businesses.On a geographic basis,orders and revenue rose in all three reporting regions.The strongest growth contri

125、bution came from the Americas region,driven by the U.S.,while growth in the Asia,Australia region was held back by declines in China,which were due mainly to negative currency translation effects.Profit also rose in all businesses.Growth in profit and profitability was driven by the electrical produ

126、cts and the electrification businesses due to higher revenue,by increased capacity utilization and by cost reductions achieved through the execution of Smart Infrastructures competitiveness program.Severance charges were 50 million,up from 28 million a year earlier.At the end of fiscal 2023,Smart In

127、frastructures order backlog was 16 billion,of which 10 billion are expected to be converted into revenue in fiscal 2024.Overall,markets served by Smart Infrastructure grew clearly in fiscal 2023.Market dynamics were influenced by a further recovery from COVID-19-related effects;easing of supply chai

128、n and logistics constraints,which resulted in shorter lead times for order fulfillment;strong price inflation;and effects from the war in Ukraine.Furthermore,rising interest rates burdened building construction markets.On a geographic basis,all reporting regions contributed to growth.Price inflation

129、 affected all regions and was particularly high in the U.S.While on the one hand rising interest rates impacted growth in the U.S.,economic activity was boosted by stimulus programs on the other hand.In China,the recovery from lockdown measures was significantly weaker than expected,which also impac

130、ted growth dynamics in other countries,while Europe was most strongly affected by the war in Ukraine and high energy prices.Grid markets grew clearly,driven by demand for integration of energy from renewable resources.Industrial markets also grew clearly on strong demand in the battery,semiconductor

131、,and automotive industries.The buildings market overall also grew but activity in the commercial building market rose only moderately.In fiscal 2024,markets served by Smart Infrastructure are expected to grow clearly but at a slower pace than in fiscal 2023 due to a substantially lower effect from p

132、rice inflation and a cooling of the general economic environment.While growth is expected to be weak in residential and commercial building markets and in some industrial markets,continued robust demand is expected for data centers and power distribution.Overall,market development in fiscal 2024 is

133、expected to continue to be influenced by rebalancing of supply chains,trade conflicts and effects from geopolitical tensions.3.4 Mobility Mobility combines all Siemens businesses in the area of rail passenger and rail freight transportation.Within its rolling stock business,its offerings encompass v

134、ehicles and selected components for urban and regional transport such as 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 rail.Rolling stock offerings furthermore include locomotives and solutio

135、ns 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 systems,interlocking,operations control and telematic systems,digital station solutions and railway communi

136、cation systems,signaling on-board and signaling 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 service business,Mobility provides maintenance and digital services,among others,for rolling stock

137、 and rail infrastructure throughout the entire lifecycle.In its turnkey business,it bundles consulting,planning,financing,construction,service and operation of complete mobility systems.Mobilitys software business comprises train planning systems,trip planning,mobile ticketing,Mobility as a Service(

138、MaaS)platforms,on-demand transportation and fleet management,data analytics,and inventory and reservation management.Mobility sells its products,systems and solutions through its worldwide network of sales and execution units.The principal customers of Mobility are public and state-owned companies i

139、n 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 trends.Large contracts in the rolling stock and

140、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 principal competitors are multinational com

141、panies.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,decarbonization and digitalization.Increas

142、ing 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 reducing space requirements and costs of transportation.The pressure on mobil

143、ity 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 opportunities for providers of such solutions.IoT systems and new software-

144、based solutions such as MaaS are expected to become major growth enablers for the rail industry.Overall trends towards urbanization,decarbonization and digitalization persist and many countries have been allocating significant funds to rail and public transport operators to address these trends.Mobi

145、litys R&D strategy is focused on reducing life-cycle costs of rail infrastructure and rolling stock,securing system availability,increasing network capacity of rail infrastructure,optimizing the processes of rail operators and improving passenger experience.With Siemens Xcelerator,Mobility intends t

146、o make software more modular and increasingly move it to the cloud.At the same time,Mobility intends to enhance connectivity of hardware and software and provide open application programming interfaces.Thereby Mobility accelerates the pace and impact of digital innovation,which in turn benefits owne

147、rs,operators,and customers of rail transport.Mobilitys major R&D areas include 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;smart connected product

148、s;the Distributed Smart Safe System(DS3),which allows for hardware-independent and cloud-enabled signaling;automatic train operation for European Train Control System(ETCS);safe artificial intelligence for driverless trains;air-free brake systems,5G for wireless-based activities;the Mobility Softwar

149、e Suite X for operators and passengers;and cyber security.Mobilitys investments focus mainly on maintaining or enhancing its production facilities,on meeting project demands,and on enhancing its depot services.Combined Management Report 10 Fiscal year%Change(in millions of)2023 2022 Actual Comp.Orde

150、rs 20,629 13,200 56%65%Revenue 10,549 9,692 9%15%therein:service business 1,710 1,592 7%9%Profit 882 794 11%Profit margin 8.4%8.2%Order intake at Mobility exceeded the record level a year earlier on sharply higher volume from large orders.Contract wins in fiscal 2023 were highlighted by an order wor

151、th 2.9 billion for locomotives and associated maintenance in India,a 2.5 billion order for the first line of a turnkey rail system in Egypt and a 2.1 billion order for suburban trains in Germany.Order intake a year earlier included among others an order worth 1.5 billion for high-speed trains in Ger

152、many.Revenue rose on growth in nearly all businesses with the strongest contribution coming from the rolling stock business,and was supported by improved availability of components.On a geographic basis,revenue grew in all three reporting regions.Nominal volume development was held back by the fisca

153、l 2022 divestment of Yunex Traffic,resulting in a portfolio effect which took four percentage points from order growth and five percentage points from revenue growth in the current period.As with revenue,profit and profitability rose in nearly all businesses.Profit in fiscal 2023 included a positive

154、 0.2 billion in trailing effects related to the winding down of business activities in Russia a year earlier,which burdened prior-year profit by 0.6 billion in impairments and other charges.In addition,profit in fiscal 2022 included impacts from supplier delays and COVID-19 effects.These burdens wer

155、e largely offset by a gain of 0.7 billion from the sale of Yunex Traffic.Severance charges were 25 million,compared to 27 million a year earlier.Mobilitys order backlog rose to 45 billion at the end of the fiscal year,of which 11 billion are expected to be converted into revenue in fiscal 2024.Marke

156、ts served by Mobility grew significantly in fiscal 2023,supported by long-term trends such as urbanization,decarbonization and increasing demand for digital solutions.Market dynamics in fiscal 2023 also benefited from receding material shortages and easing of supply chain constraints.On a geographic

157、 basis,all regions contributed to market growth,highlighted by large and very large orders in Germany,the U.S.,Egypt and India,among others.The market for rolling stock included large orders for high-speed trains,commuter trains and locomotives in Europe,India and Egypt.Growth in North America inclu

158、ded major investments in new and existing fleets,especially for urban transport.Growth in the rail infrastructure market was driven mainly by digitalization,deployment of ETCS technology and track electrification,for example with projects in Europe and Asia.For fiscal 2024,markets served by Mobility

159、 are expected to grow clearly,benefiting from the above-mentioned trends and with all reporting regions contributing to growth.Market expansion is expected to be supported by a large number of public investment programs.Mobility anticipates that rail operators in Europe,particularly in Germany and i

160、n the U.K.,will continue making significant investments in rolling stock and advanced rail infrastructure solutions and that customers in the Middle East and Africa will tender large turnkey projects,especially in North Africa and the Middle East such as in in Egypt,Saudi Arabia and the United Arab

161、Emirates.Markets in the U.S.are expected to remain strong,especially due to ongoing investments in rolling stock,particularly for mainline and light rail transport;within the infrastructure market demand is expected to continue for mass transit including communications-based train control technology

162、 and from a developing market for rail freight solutions.In Asia,markets in India are expected to grow strongly with investments in mainline transport(high-speed trains,freight infrastructure,rolling stock fleet renewals and expansions of large commuter rail and locomotive tenders),urban metros and

163、rail electrification driving growth.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 is a global provider of healthcare products,solutions and services.It develops,manufactures,and se

164、lls a diverse range of diagnostic and therapeutic products and services to healthcare providers.In addition,Siemens Healthineers also provides clinical consulting services,as well as an extensive range of training and service offerings.This comprehensive portfolio supports customers along the entire

165、 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 hospitals and hospital systems,public and private clinics and laboratories,universities,physicians/joint medical p

166、ractices,public health agencies,public and private health insurers,through to pharmaceutical companies and clinical research institutes.The imaging business provides imaging products,services,and solutions as well as digital offerings.Its most important products are devices for magnetic resonance im

167、aging,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 fields of laboratory and point-of-care diagnostics.The Varian business provides multi-modality cancer care tec

168、hnologies along with solutions and services to oncology departments in hospitals and clinics.The portfolio of the advanced therapies business consists of highly integrated products,services,and solutions across multiple clinical fields that are designed to support image-guided minimally invasive tre

169、atments,in areas such as cardiology,interventional radiology,and surgery.Competition in the imaging,Varian and advanced therapies businesses consists mainly of a small number of large multinational companies,while the diagnostics market is fragmented with a variety of global players that compete wit

170、h each other across market segments and also with several regional players and specialized companies in niche technologies.Markets of Siemens Healthineers are characterized by long-term stability,though,over the long term,these markets may also experience shorter-term fluctuations arising from macro

171、economic and health political developments,such as changes in health policy,regulation or reimbursement systems.Because a substantial portion of Siemens Healthineers revenue stems from recurring business,growth opportunities can be pursued from a stable foundation of profit.The addressable markets o

172、f Siemens Healthineers are shaped by four major trends.The first is demographic developments,in particular the growing and aging global population.This trend poses major challenges for global healthcare systems and,at the same time,offers an opportunity for healthcare providers as the demand for cos

173、t-efficient healthcare solutions increases.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 systems will persist,driving overall demand for healthcare p

174、roducts and services and hence market growth.The third trend is the increase in non-communicable diseases as a consequence of an aging population and environmental and lifestyle-related changes.This trend results in far more patients with multiple morbidities,increasing the need for new ways to dete

175、ct and treat diseases in a timely manner.The fourth global trend,the transformation of healthcare providers such as hospitals and Combined Management Report 11 laboratories,results from a combination of societal and market forces that are driving healthcare providers to operate and organize their bu

176、sinesses differently.This development is driven partly by staff shortages,societys increasing resistance to healthcare costs,the growing professionalization of health insurance and governmental healthcare systems,burdens from chronic diseases and the rapid scientific progress.The growing cost pressu

177、re will continue to drive new remuneration models for healthcare services such as value-based reimbursement instead of treatment-based reimbursement.As a result of these factors,theres a trend of consolidation of healthcare providers into networks.The aim of the resulting larger clinic and laborator

178、y chains,often operating internationally and acting increasingly like large corporations are systematic improvements in quality,while at the same time reducing costs.This development leads to an increased demand for standardized and scalable systems and solutions as well as new business models.R&D a

179、ctivities at Siemens Healthineers are aimed at offering innovative and sustainable solutions for diagnostics and therapy to its customers.Artificial intelligence,sensors,and robotics are focal points of the R&D activities at Siemens Healthineers.A growing share of the R&D activities is devoted to im

180、proving the sustainability of the products.Furthermore,the systems of Siemens Healthineers regularly receive extensive software releases to improve user friendliness and add innovative applications.Investments at Siemens Healthineers were mainly for spending for factories to expand manufacturing and

181、 technical capabilities,in particular in the U.S.and China,for measures related to improving operational efficiency and for additions to intangible assets,including capitalized development expenses for products within the Atellica product line.Fiscal year%Change(in millions of)2023 2022 Actual Comp.

182、Orders 24,499 25,556(4)%(2)%Revenue 21,681 21,715 0%1%Profit 2,527 3,369(25)%Profit margin 11.7%15.5%In fiscal 2023,Siemens Healthineers recorded a decrease of orders,while revenue was on the prior-year level.While the imaging and Varian businesses in particular delivered growth in both orders and r

183、evenue,this was offset by a substantial decline in the diagnostics business.On a geographic basis,revenue was on the prior-year level in all regions;in the Asia,Australia region reported revenue was held back by negative currency translation effects.Profit declined primarily due to substantially low

184、er revenue from rapid coronavirus antigen tests in the diagnostics business,which also recorded charges of 0.2 billion related to its transformation program.In addition,profitability was burdened by impairments and other charges totaling 0.3 billion due to a management decision to refocus certain ac

185、tivities in the advanced therapies business.The imaging and Varian businesses increased their profit contributions on higher revenue.Severance charges were 167 million in fiscal 2023,compared to 71 million a year earlier.The order backlog for Siemens Healthineers was 34 billion at the end of the fis

186、cal year,of which 11 billion are expected to be converted into revenue in fiscal 2024.In general,the addressable global markets of Siemens Healthineers excluding rapid coronavirus antigen tests grew moderately in fiscal 2023.From a regional perspective,the Asia,Australia region saw market growth in

187、most businesses;in China,government subsidy programs,among others,including the program of lending incentives associated with the economic stimulus package,had a positive effect on investment by healthcare providers.In the region Europe,C.I.S.,Africa,Middle East,government subsidy programs,among oth

188、ers,were able to support growth in most businesses.In the U.S.,market growth was recorded in all businesses.Globally,higher volume in the market for the imaging business was generated thanks to the high level of order backlogs resulting from demand catch-up effects,on the one hand,and investments in

189、 diagnostic imaging equipment in reaction to announced price hikes,on the other hand.The imaging market is expected to grow moderately overall in fiscal 2024,driven mainly by pent-up demand for the major imaging modalities.Within the diagnostics business,demand for rapid coronavirus antigen tests de

190、clined sharply after the COVID-19 pandemic ceased to be a global health emergency and the incidence of COVID-19 infections subsided.The market for the diagnostics business is expected to achieve slight growth in fiscal 2024,excluding COVID-19 testing.In the market for Varian,overall market growth,es

191、pecially in the U.S.and Western Europe,was boosted mainly by increasing demand for product innovations and services as well as by an intact replacement market.For this reason,the market for Varian is expected to grow clearly in fiscal 2024.For advanced therapies business,government subsidy programs,

192、including lending incentives enacted as part of the economic stimulus package in China along with EU investment programs,positively influenced market development.The expectation for the advanced therapies business is that the market will continue to grow moderately in fiscal 2024.3.6 Siemens Financi

193、al 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 custom

194、ers 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 management

195、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 also supports its customers through targeted financings in sustainable technologies and projects.Combined Managem

196、ent Report 12 Fiscal year(in millions of)2023 2022 Earnings before taxes(EBT)563 498 therein:equity business 201 269 ROE(after taxes)16.3%15.6%Sep 30,Sep 30,(in millions of)2023 2022 Total assets 32,915 33,263 Siemens Financial Services in fiscal 2023 recorded higher earnings before taxes in the deb

197、t business despite a volatile credit environment.In the prior period,earnings before taxes were burdened by 0.2 billion in connection with the sale of the financing and leasing business in Russia at the end of the fiscal year.The equity business recorded strong results.While both periods under revie

198、w included gains from the sales of equity investments,fiscal 2022 additionally included higher gains from fair value measurements of investments and gains from energy-related investments in connection with rising prices in global energy markets.Net cash from operations(defined as the sum of cash flo

199、ws from operating and investing activities)amounted to(733)million compared to(616)million in fiscal 2022.In fiscal 2023 and fiscal 2022,net cash from operations comprised Free cash flow of 852 million and 985 million,respectively,while remaining cash flows from investing activities,including from c

200、hanges in receivables from financing activities,comprised(1,585)million and(1,601)million,respectively.Despite the increase in receivables from financing activities,total assets decreased since the end of fiscal 2022 due primarily to negative currency translation effects.SFSs business scope and capi

201、tal allocation is focused on areas of intense domain know-how closely aligned with Siemens customers and markets,particularly for Digital Industries,Smart Infrastructure and Mobility.Accordingly,SFS is influenced by the business development of the markets served by the industrial businesses,among ot

202、her factors,including macroeconomic effects such as inflation or recession which could impact the credit 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 intend

203、s to maintain a highly diversified portfolio across regions,while participating in the strong economic development 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,

204、systems and services for different industries including oil and gas,chemical,mining,cement,logistics,energy,marine,water and fiber.Unrealized potential within these businesses requires adjustment in their approach using defined measures including internal re-organization,digitalization,cost improvem

205、ents,and optimizing procurement,production and service activities.After achieving certain threshold performance targets,businesses may be combined with another business in the same industry,sold,placed into an external private equity partnership,or exited via a public listing.At the end of fiscal 20

206、23,Portfolio Companies consisted mainly of three separately managed units:Large Drives Applications offers electric motors,converters and mining solutions.Siemens Logistics offers sorting technology and solutions focused on handling baggage and cargo in airports.Siemens Energy Assets comprises certa

207、in regional business activities of the former Gas and Power segment;as part of the Siemens Energy carve-out these activities remained so far with Siemens due to country-specific regulatory restrictions or economic considerations.Demand within the industries served by Portfolio Companies mainly shows

208、 a delayed response to changes in the overall economic environment.Financial results are strongly dependent,however,on customer investment 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

209、than changes in produced volumes.The heterogonous industrial customer base of the separately managed units requires a dedicated sales approach based on in-depth understanding of specific industries and customer requests,resulting in the use of various sales and marketing channels for Portfolio Compa

210、nies.Fiscal year%Change(in millions of)2023 2022 Actual Comp.Orders 4,016 3,995 1%15%Revenue 3,313 3,234 2%19%Profit 343 1,520(77)%Profit margin 10.3%47.0%In fiscal 2023,orders and revenue increased in all businesses.While order growth was driven by higher volume from larger orders,most evidently at

211、 the Airport Logistics business of Siemens Logistics,revenue increased mainly at Large Drives Applications in part due to strong conversion of the order backlog.Primarily due to the sale of the mail and parcel-handling business of Siemens Logistics in the fourth quarter of fiscal 2022,portfolio effe

212、cts took eleven and 13 percentage points from orders and revenue,respectively.The strong profit was driven by Siemens Energy Assets and Large Drives Applications.Additionally,Portfolio Companies recorded a gain of 0.1 billion from the sale of the Commercial Vehicles business.For comparison,profit in

213、 fiscal 2022 included a gain of 1.1 billion from the sale of the mail and parcel-handling business of Siemens Logistics and a revaluation gain of 0.3 billion in connection with the sale of the equity investment in Valeo Siemens eAutomotive GmbH.Portfolio Companies recorded lower severance charges of

214、 12 million,down from 20 million in fiscal 2022.Combined Management Report 13 Although the broad range of businesses is operating in diverse markets,overall the main markets served by Portfolio Companies are generally impacted by uncertainties regarding geopolitical and economic developments which t

215、end to trigger customer caution regarding purchasing decisions.After the post-pandemic recovery,a normalizing growth momentum is expected in most end-customer vertical markets in fiscal 2024.At the beginning of fiscal 2024,Large Drives Applications and certain business activities which were transfer

216、red from Digital Industries are combined in the areas of low-to high-voltage motors,geared motors,medium-voltage converters and motor spindles under a new separately managed unit,Innomotics.If the transfer from Digital Industries had already existed at the beginning of fiscal 2023,Portfolio Companie

217、s would have posted orders of 5,317 million,revenue of 4,699 million,profit of 457 million and a profit margin of 9.7%.Portfolio Companies order backlog amounted to 5 billion at the beginning of fiscal 2024,of which 3 billion are expected to be converted into revenue in fiscal 2024.3.8 Reconciliatio

218、n to Consolidated Financial Statements Profit Fiscal year(in millions of)2023 2022 Siemens Energy Investment 668 (2,911)Siemens Real Estate 67 118 Innovation (195)(190)Governance (451)(582)Centrally carried pension expense (104)(113)Amortization of intangible assets acquired in business combinations

219、 (865)(990)Financing,eliminations and other items (256)(474)Reconciliation to Consolidated Financial Statements (1,135)(5,141)The result for Siemens Energy Investment was driven by a gain of 1.6 billion from a partial reversal of an impairment on Siemens stake in Siemens Energy AG(fiscal 2022 includ

220、ed an impairment of 2.7 billion),a gain of 0.3 billion resulting from the transfer of a stake in Siemens Energy AG to Siemens Pension-Trust e.V.,and a gain of 0.2 billion which was recorded in connection with a capital increase by Siemens Energy AG in which Siemens did not participate.These gains we

221、re partly offset by Siemens share of Siemens Energys after-tax loss and expenses from amortization of assets resulting from purchase price allocation totaling 1.5 billion(fiscal 2022:totaling 0.2 billion).Financing,eliminations and other items included a revaluation loss of 0.2 billion on the stake

222、in Thoughtworks Holding Inc.(fiscal 2022:a loss of 0.3 billion).For comparison,fiscal 2022 included also impacts totaling 0.5 billion at Corporate Treasury,resulting from the sale of Siemens financing and leasing business in Russia,as well as a loss of 0.1 billion resulting from applying hyperinflat

223、ion accounting.These effects were partly offset in fiscal 2022 by a gain of 0.5 billion in connection with an investment accounted for using the equity method mainly due to fair value measurement.Combined Management Report 14 4.Results of operations 4.1 Orders and revenue by region Currency translat

224、ion effects took two percentage points each from order and revenue growth year-over-year,respectively.Portfolio measures,including the sale of Yunex Traffic in the third quarter of fiscal 2022 and the mail and parcel-handling business of Siemens Logistics in the fourth quarter of fiscal 2022,took on

225、e percentage point each from order and revenue growth year-over-year.The ratio of orders to revenue(book-to-bill)for Siemens in fiscal 2023 was 1.19.The order backlog as of September 30,2023 was 111 billion.Orders(location of customer)Fiscal year%Change(in millions of)2023 2022 Actual Comp.Europe,C.

226、I.S.,Africa,Middle East 42,679 42,373 1%4%therein:Germany 15,164 15,046 1%3%Americas 26,540 25,646 3%3%therein:U.S.22,093 21,563 2%2%Asia,Australia 23,085 20,990 10%15%therein:China 8,798 10,831(19)%(15)%Siemens(continuing operations)92,305 89,010 4%7%On a worldwide basis,growth in orders related to

227、 external customers came on a sharp increase at Mobility and clear order growth at Smart Infrastructure;both businesses reported higher order intake across all regions year-over-year.Digital Industries and,to a lesser extent,Siemens Healthineers recorded order declines from high bases of comparison.

228、Siemens Healthineers again had the highest order contribution.In the Europe,C.I.S.,Africa,Middle East region,order intake increased by double digits at Mobility,including a 2.5 billion order for the first line of a turnkey rail system in Egypt and a 2.1 billion order for suburban trains in Germany.S

229、mart Infrastructure recorded clear order growth,whereas Digital Industries showed a double-digit decline year-over-year from a high base of comparison,due to its automation businesses.Orders at Siemens Healthineers declined year-over-year primarily due to lower demand for rapid coronavirus antigen t

230、ests in the diagnostics business.Within the region,Germany showed a pattern similar to the region overall.Order intake rose in both the Americas region and in the U.S.on double-digit increases at Mobility and Smart Infrastructure,whereas Siemens Healthineers recorded a moderate order decline.In the

231、Asia,Australia region,order intake was up on a sharp increase at Mobility,including a 2.9 billion order for locomotives and associated maintenance in India,combined with slight order growth at Smart Infrastructure.Orders declined at Digital Industries and Siemens Healthineers.Within the region in Ch

232、ina,order declines were reported in most of the industrial businesses,except at Mobility with significant growth.Overall,order intake both in the region and in China was strongly burdened by negative currency translation effects.Revenue(location of customer)Fiscal year%Change(in millions of)2023 202

233、2 Actual Comp.Europe,C.I.S.,Africa,Middle East 36,664 33,481 10%12%therein:Germany 12,718 11,961 6%9%Americas 22,615 20,680 9%9%therein:U.S.18,561 17,241 8%7%Asia,Australia 18,489 17,816 4%10%therein:China 9,367 9,557(2)%4%Siemens(continuing operations)77,769 71,977 8%11%Worldwide,revenue related to

234、 external customers rose significantly at Smart Infrastructure and Digital Industries,while Mobility posted clearly higher revenue growth year-over-year.Revenue at Siemens Healthineers came in level with fiscal 2022 and was again the highest among industrial businesses.Revenue in Europe,C.I.S.,Afric

235、a,Middle East increased with double-digit growth contributions from Digital Industries and Smart Infrastructure.Mobility reported clear revenue growth,which was held back by portfolio effects stemming from the sale of Yunex traffic in fiscal 2022.Revenues at Siemens Healthineers decreased slightly.W

236、ithin the region in Germany,the same pattern applied for Digital Industries and Smart Infrastructure,while revenues at Mobility came in flat.A decline in Germany at Siemens Healthineers was primarily due to lower demand for rapid coronavirus antigen tests in the diagnostics business.In the Americas

237、region,revenue was up in all four industrial businesses led by Smart Infrastructure with double-digit growth.Within the region in the U.S.,Mobility and Siemens Healthineers reported slight revenue decreases.In the Asia,Australia region,revenue was up by on double-digit increase at Mobility,followed

238、by revenue growth at Digital Industries and Smart Infrastructure.As with orders,revenue development both in the region and in China was held back by strong negative currency Combined Management Report 15 translation effects,which turned revenue development negative in China for Smart Infrastructure

239、and Digital Industries.Mobility also recorded a revenue decline in China.4.2 Income Fiscal year (in millions of,earnings per share in)2023 2022%Change Digital Industries 4,947 3,892 27%Smart Infrastructure 3,074 2,222 38%Mobility 882 794 11%Siemens Healthineers 2,527 3,369(25)%Industrial Business 11

240、,430 10,277 11%Profit margin Industrial Business 15.4%15.1%Siemens Financial Services 563 498 13%Portfolio Companies 343 1,520(77)%Reconciliation to Consolidated Financial Statements (1,135)(5,141)78%Income from continuing operations before income taxes 11,201 7,154 57%Income tax expenses(2,687)(2,7

241、41)2%Income from continuing operations 8,514 4,413 93%Income(loss)from discontinued operations,net of income taxes 15(21)n/a Net income 8,529 4,392 94%Basic EPS 10.04 4.65 116%EPS pre PPA 10.77 5.47 97%ROCE 18.6%10.0%As a result of the developments described in chapter 3,Income from continuing opera

242、tions before income taxes increased by 57%.Severance charges for continuing operations were 430 million,of which 351 million were in Industrial Business.In fiscal 2022,severance charges for continuing operations were 272 million,of which 190 million were in Industrial Business.The tax rate in fiscal

243、 2023 was 24%(fiscal 2022:38%),benefiting from tax-free gains in relation to the partial reversal of an impairment on Siemens stake in Siemens Energy AG and the contribution of a stake in Siemens Energy AG to Siemens Pension-Trust e.V.Moreover,the gain recorded in connection with the capital increas

244、e by Siemens Energy AG was also tax-free.These positive influences on the tax rate were partly offset by our participation in the after-tax loss at Siemens Energy,which was not tax-deductible.As a result,the increase in Income from continuing operations was 93%.The increase in Basic EPS and in EPS p

245、re PPA reflects the increase of Net income attributable to Shareholders of Siemens AG,which was 7,949 million in fiscal 2023 compared to 3,723 million in fiscal 2022,combined with a lower number of weighted average shares outstanding.Our investment in Siemens Energy AG contributed 0.84 to the increa

246、se of EPS pre PPA.At 18.6%,ROCE was back in the target range established in our Siemens Financial Framework.The increase year-over-year was due primarily to sharply higher income before interest after tax.4.3 Research and development In fiscal 2023,we reported research and development expenses of 6.

247、2 billion,compared to 5.6 billion in fiscal 2022.The resulting R&D intensity,defined as the ratio of R&D expenses to revenue,was 8.0%(fiscal 2022:7.8%).Additions to capitalized development expenses amounted to 0.3 billion as in the prior year.As of September 30,2023,Siemens worldwide held approximat

248、ely 45,000 granted patents in its continuing operations.On average,we had 50,029 R&D employees in fiscal 2023.Our research and development activities are ultimately geared to developing innovative,sustainable solutions for our customers and our businesses while also strengthening our own competitive

249、ness.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 quickly from technological developments.Siemens core technologies have been

250、determined to be critical for our Companys long-term success and that of our customers.They are bundled in eleven technology areas:additive manufacturing and materials(from fiscal 2024 on:advanced manufacturing and circularity),cybersecurity and trust,data analytics and artificial intelligence,power

251、 electronics,simulation and digital twin,sustainable energy and infrastructure,future of 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 work closely with schol

252、ars 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 Innovation Ecosystems,which we ma

253、intain 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 is focused on anticipatin

254、g 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 Report 16 5.Net assets position Sep 30,(in millions of)2023 2022%Change Cash and cash equivalents 10,084 10,465(4)%T

255、rade and other receivables 17,405 16,701 4%Other current financial assets 10,605 9,696 9%Contract assets 7,581 7,559 0%Inventories 11,548 10,626 9%Current income tax assets 1,363 1,432(5)%Other current assets 1,955 1,935 1%Assets classified as held for disposal 99 413(76)%Total current assets 60,639

256、 58,829 3%Goodwill 32,224 33,861(5)%Other intangible assets 10,641 12,196(13)%Property,plant and equipment 11,938 11,733 2%Investments accounted for using the equity method 3,014 4,955(39)%Other financial assets 22,855 25,903(12)%Deferred tax assets 2,231 2,459(9)%Other assets 1,523 1,565(3)%Total n

257、on-current assets 84,428 92,673(9)%Total assets 145,067 151,502(4)%Our total assets at the end of fiscal 2023 were influenced by negative currency translation effects of 7.6 billion(particularly affecting goodwill and other financial assets),primarily involving the U.S.dollar.The increase in other c

258、urrent financial assets was driven mainly by higher loans receivable at SFS,which were mainly due to new business and reclassification of loans receivable from other financial assets due to a reassessment of the expected repayment dates.The latter was a major factor also for the decrease of other fi

259、nancial assets,along with decreased positive fair values of derivative financial instruments.Inventories increased in all industrial businesses,with the build-up most evident at Mobility and Siemens Healthineers.The decrease of other intangible assets resulted mainly from negative currency translati

260、on effects and from impairments recorded at Siemens Healthineers.Our investment in Siemens Energy AG was the main factor for the decrease of investments accounted for using the equity method.For further information see Note 4 in Notes to Consolidated Financial Statements for fiscal 2023.Combined Man

261、agement Report 17 6.Financial position 6.1 Capital structure Sep 30,(in millions of)2023 2022%Change Short-term debt and current maturities of long-term debt 7,483 6,658 12%Trade payables 10,130 10,317(2)%Other current financial liabilities 1,601 1,616(1)%Contract liabilities 12,571 12,049 4%Current

262、 provisions 2,320 2,156 8%Current income tax liabilities 2,566 2,381 8%Other current liabilities 8,182 7,448 10%Liabilities associated with assets classified as held for disposal 50 61(19)%Total current liabilities 44,901 42,686 5%Long-term debt 39,113 43,978(11)%Provisions for pensions and similar

263、obligations 1,426 2,275(37)%Deferred tax liabilities 1,655 2,381(30)%Provisions 1,794 1,857(3)%Other financial liabilities 1,453 1,867(22)%Other liabilities 1,666 1,654 1%Total non-current liabilities 47,106 54,011(13)%Total liabilities 92,007 96,697(5)%Debt ratio 63%64%Total equity attributable to

264、shareholders of Siemens AG 47,791 48,895(2)%Equity ratio 37%36%Non-controlling interests 5,270 5,910(11)%Total liabilities and equity 145,067 151,502(4)%The increase in short-term debt and current maturities of long-term debt was due mainly to reclassifications of long-term instruments totaling 5.3

265、billion.This was partly offset by the repayment of euro,U.S.dollar and British pound instruments totaling 4.6 billion.Long-term debt decreased due primarily to the above-mentioned reclassifications and currency translation effects of 1.9 billion on bonds issued in the U.S.dollar and British pound.Se

266、t against this were mainly increases of 2.5 billion from the issuance of euro bonds.The contribution of a stake in Siemens Energy AG to Siemens Pension-Trust e.V.led to a decrease of provisions for pensions and similar obligations.Additional major effects resulted from returns on plan assets and act

267、uarial gains and losses.For further information see Note 17 in Notes to Consolidated Financial Statement for fiscal 2023.The main factors for the decrease in total equity attributable to shareholders of Siemens AG were a negative other comprehensive income,net of income taxes,of 4.0 billion resultin

268、g mainly from currency translation;dividend payments of 3.4 billion(for fiscal 2022);and changes in equity totaling 1.6 billion resulting from an equity transaction at Siemens Energy AG.These factors were largely offset by 7.9 billion in net income attributable to shareholders of Siemens AG.In fisca

269、l 2023,Siemens cancelled 50 million treasury shares,thereby reducing issued capital by 150 million and retained earnings by 5.1 billion.Capital structure ratio Our capital structure ratio as of September 30,2023 decreased to 0.6 from 1.0 a year earlier.The change was due to a decrease in Industrial

270、net debt and a higher EBITDA.Debt and credit facilities As of September 30,2023,we recorded,in total,40.9 billion in notes and bonds,2.2 billion in loans from banks,0.5 billion in other financial indebtedness and 2.9 billion in lease liabilities.Notes and bonds were issued mainly in the U.S.dollar a

271、nd the euro,and to a lesser extent in the British pound.We have credit facilities totaling 7.5 billion which were unused as of September 30,2023.For further information about our debt see Note 16 in Notes to Consolidated Financial Statements for fiscal 2023.For further information about the function

272、s and objectives of our financial risk management see Note 25 in Notes to Consolidated Financial Statements for fiscal 2023.Combined Management Report 18 Off-balance-sheet commitments As of September 30,2023,the undiscounted amount of maximum potential future payments related primarily to credit and

273、 performance guarantees amounted to 6.2 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 li

274、abilities of 0.4 billion which result mainly from other guarantees and legal proceedings.Other guarantees include 0.1 billion,for which Siemens has reimbursement rights towards Siemens Energy.Irrevocable loan commitments amounted to 3.9 billion.A considerable portion of these commitments resulted fr

275、om 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 Notes 21 and 25 in Notes to Consolidated Financial Statements for fiscal 2023.Share buybac

276、k 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 Meeting on February 5,2020.In fiscal 2023,Siemens repurchase

277、d 6,853,091 shares under this share buyback program.On November 16,2023 we announced a share buyback of up to 6 billion for up to five years.6.2 Cash flows Fiscal year(in millions of)2023 Cash flows from operating activities Net income 8,529 Change in operating net working capital(2,165)Other reconc

278、iling items to cash flows from operating activities continuing operations 5,918 Cash flows from operating activities continuing operations 12,281 Cash flows from operating activities discontinued operations(41)Cash flows from operating activities continuing and discontinued operations 12,239 Cash fl

279、ows from investing activities Additions to intangible assets and property,plant and equipment (2,218)Acquisitions of businesses,net of cash acquired(407)Purchase of investments and financial assets for investment purposes(723)Change in receivables from financing activities of SFS(1,461)Other disposa

280、ls of assets 1,351 Cash flows from investing activities continuing operations(3,458)Cash flows from investing activities discontinued operations 281 Cash flows from investing activities continuing and discontinued operations(3,176)Cash flows from financing activities Purchase of treasury shares(884)

281、Re-issuance of treasury shares and other transactions with owners(404)Issuance of long-term debt 2,470 Repayment of long-term debt(including current maturities of long-term debt)(5,252)Change in short-term debt and other financing activities 300 Interest paid(1,208)Dividends paid to shareholders of

282、Siemens AG(3,362)Dividends attributable to non-controlling interests(389)Cash flows from financing activities continuing operations(8,730)Cash flows from financing activities discontinued operations(1)Cash flows from financing activities continuing and discontinued operations(8,731)Industrial Busine

283、ss recorded cash inflows from operating activities that exceeded its profit,with the highest contribution from Digital Industries.Cash outflows from changes in operating net working capital were due mainly to Siemens Healthineers which recorded a significant build-up of trade and other receivables a

284、s well as inventories due in part to the expected growth of business activities in coming quarters.Cash outflows for purchase of investments and financial assets for investment purposes included additions of assets eligible as central bank collateral and payments for debt or equity investments.Cash

285、outflows from change in receivables from financing activities of SFS related primarily to SFSs debt business.Cash inflows from other disposals of assets included mainly proceeds from disposals of assets eligible as central bank collateral,from the sale of the Commercial Vehicles business by Portfoli

286、o Companies,and from the sale or disposal of debt or equity investments.Cash outflows from the re-issuance of treasury shares and other transactions with owners were driven by the purchase of Siemens Healthineers AG treasury shares.Combined Management Report 19 Cash outflows for dividends attributab

287、le 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 12.2 billion in fiscal 2023,our total liquidity(defined as cash and cash equivalents

288、 plus current interest-bearing debt securities)of 11.1 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,our operating net working capital is sufficient for our present requirement

289、s.Cash conversion rate Fiscal year 2023 Fiscal year 2022(in millions of)Continuing operations Discontinued operations Continuing and discontinued operations Continuing operations Discontinued operations Continuing and discontinued operations Cash flows from operating activities 12,281(41)12,239 10,3

290、22(81)10,241 Additions to intangible assets and property,plant and equipment (2,218)(2,218)(2,084)(2,083)(I)Free cash flow 10,062(41)10,021 8,238(81)8,157(II)Net income 8,529 4,392(I)/(II)Cash conversion rate 1.17 1.86 The cash conversion rate was influenced by a non-cash profit of 0.7 billion in fi

291、scal 2023(in fiscal 2022 by a non-cash loss of 2.9 billion)related to Siemens Energy Investment.Investing activities Additions to intangible assets and property,plant and equipment from continuing operations totaled 2.2 billion in fiscal 2023.Within the industrial businesses,ongoing investments rela

292、ted 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 amounted to 1.7 billion in fiscal 2023.The remaining portion related mainly

293、to Siemens Real Estate,including significant amounts for projects such as new office buildings in Germany and Spain.Siemens Real Estate is responsible for uniform and comprehensive management of Company real estate worldwide(except for Siemens Healthineers)and supports the industrial businesses and

294、corporate activities with customer-specific real estate solutions.With regard to capital expenditures,we expect a significant increase in fiscal 2024.In the context of the 2 billion investment strategy presented in fiscal 2023 to strengthen growth,innovation and resilience,significant amounts will b

295、e invested in the coming years for the construction and expansion of high-tech production facilities in the U.S.,China and Singapore.As part of this investment strategy,Siemens also announced the establishment of its new Technology Campus in Erlangen,Germany,to expand development and manufacturing c

296、apacities.In addition,up to 0.6 billion are to be invested in Siemensstadt 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 in

297、vestments are planned in relation to new office buildings,including Siemens Campus Erlangen.Furthermore,we continue to invest in attractive innovation fields through Next47,our global venture capital unit.Combined Management Report 20 7.Overall assessment of the economic position Overall,global econ

298、omic development in fiscal 2023 was mixed and characterized by a number of headwinds.In this environment,Siemens delivered a very strong performance in all its businesses due to its strategic positioning relative to long-term trends such as automation,electrification and digitalization.With our offe

299、rings,we help increase resource efficiency and the decarbonization of industry,transport and building infrastructures and make manufacturing more resilient and flexible.We expect these trends to continue to drive our growth in the coming years.During fiscal 2023,we made further progress in focusing

300、our business portfolio by selling our Commercial Vehicles business.Furthermore,we began forming a new motors and large drives company under the name Innomotics by combining our existing business activities in the areas of low-to high-voltage motors,geared motors,medium-voltage converters and motor s

301、pindles.Also,we further reduced our stake in Siemens Energy AG to 25.1%and transferred shares to Siemens Pension-Trust e.V.To boost future growth and drive innovation,we announced a 2 billion investment strategy mainly for new manufacturing capacity as well as innovation labs and education centers.W

302、e also expanded our open digital business platform,Siemens Xcelerator,by introducing Industrial Operations X,which includes a broad range of interoperable offerings for more adaptive production,and by adding new cloud-based applications for Building X,our suite for smart and sustainable buildings.Fi

303、scal 2023 was another very successful year for Siemens.We achieved excellent financial results in a volatile market environment,which on the one hand included destocking by customers and distributors following previously proactive purchasing,particularly in our short-cycle businesses,and on the othe

304、r hand included improved supply chain conditions,which accelerated revenue conversion from our high order backlog.We raised our outlook during the fiscal year after the first and the second quarters.We then reached or exceeded all the targets set for our primary measures for fiscal 2023.We achieved

305、revenue growth of 11%net of currency translation and portfolio effects and delivered EPS pre PPA of 10.77.Excluding Siemens Energy Investment,EPS pre PPA was 9.93.ROCE increased to 18.6%,our capital structure ratio came in at 0.6,and the cash conversion rate was 1.17.Orders rose 7%year-over-year to

306、92.3 billion,for a book-to-bill ratio of 1.19,thus fulfilling our expectation of a ratio above 1.Order growth was driven by sharply higher volume from large orders at Mobility,including an order worth 2.9 billion for locomotives and associated maintenance in India and a 2.5 billion order for the fir

307、st line of a turnkey rail system in Egypt,and by clear growth in Smart Infrastructure led by the electrification business.Orders in Digital Industries came in lower as the destocking trend mentioned above had a significant effect on its automation businesses.Revenue was higher in nearly all our indu

308、strial businesses and rose to 77.8 billion,up 8%year-over-year.Smart Infrastructure and Digital Industries contributed double-digit growth with all businesses posting increases.Revenue growth at Smart Infrastructure was led by the electrification and the electrical products businesses,while at Digit

309、al Industries the factory automation and the process automation businesses contributed the strongest growth.Revenue growth at Mobility was led by a significant increase in the rolling stock business.Revenue at Siemens Healthineers remained on the prior-year level as growth particularly in the imagin

310、g and Varian businesses was offset by a decline in the diagnostics business.Excluding currency translation and portfolio effects,revenue for Siemens rose 11%.We thus exceeded the forecast provided in our Combined Management Report for fiscal 2022,which was to achieve comparable revenue growth in the

311、 range of 6%to 9%,and reached the upper end of our subsequently raised outlook,which was to achieve 9%to 11%in comparable revenue growth.Profit Industrial Business exceeded the record high of a year earlier and rose 11%to 11.4 billion.All industrial businesses except Siemens Healthineers increased t

312、heir profit year-over-year.The strongest increase came from Smart Infrastructure on improvements in all its businesses,led by the electrical products and the electrification businesses.Growth at Digital Industries was driven by the automation businesses,only partly offset by a decline in profit in t

313、he software business due mainly to higher expenses related to cloud-based activities.Profit at Mobility increased in nearly all businesses and included positive trailing effects related to the winding down of business activities in Russia a year earlier.Profit at Siemens Healthineers came in lower o

314、n declines in the diagnostics business,due primarily to sharply lower revenue from rapid coronavirus antigen tests as well as charges related to its transformation program and charges related to refocusing certain activities in the advanced therapies business.The profit margin of our Industrial Busi

315、ness rose to 15.4%,up from 15.1%a year earlier,reaching its highest level ever.Digital Industries and Smart Infrastructure achieved the strongest increases and also contributed the highest margins:22.6%and 15.4%,respectively.The profit margin for Mobility rose slightly to 8.4%,while the profit margi

316、n at Siemens Healthineers declined to 11.7%.Earnings before taxes at SFS increased significantly due mainly to higher earnings before taxes in the debt business,which in the prior fiscal year included a 0.2 billion impact in connection with the sale of the financing and leasing business in Russia.Re

317、turn on equity after tax for SFS increased to 16.3%.Profit at Portfolio Companies included a 0.1 billion gain from the sale of the Commercial Vehicles business but came in sharply lower compared to the prior fiscal year which had included a 1.1 billion gain from the sale of the mail and parcel-handl

318、ing business of Siemens Logistics and a 0.3 billion revaluation gain in connection with the sale of our stake in Valeo Siemens eAutomotive GmbH.Results within Reconciliation to Consolidated Financial Statements benefited from positive effects related to Siemens Energy Investment,including 1.6 billio

319、n from a partial reversal of the prior-year 2.7 billion impairment on Siemens stake in Siemens Energy AG.These positive effects were partly offset by Siemens share of Siemens Energys after-tax loss.Net income nearly doubled year-over-year to a historic high of 8.5 billion and corresponding basic EPS

320、 more than doubled to 10.04.EPS pre PPA increased to 10.77.Excluding a positive 0.84 per share related to Siemens Energy Investment,EPS pre PPA was 9.93.We thus exceeded the forecast provided in our Combined Management Report for fiscal 2022,which was to achieve EPS pre PPA in a range of 8.70 to 9.2

321、0,and exceeded our forecast made after the third quarter of fiscal 2023,which was for EPS pre PPA excluding Siemens Energy Investment in the range of 9.60 to 9.90.ROCE for fiscal 2023 rose to 18.6%,up from 10.0%in fiscal 2022.This increase was due to sharply higher income before interest after tax y

322、ear-over-year.We thus exceeded the forecast for ROCE provided in our Combined Management Report 2022,which was to come close to or reach the lower end of our target range of 15%to 20%.We evaluate our capital structure using the ratio of Industrial net debt to EBITDA.Due to a combination of a decreas

323、e in Industrial net debt and higher EBITDA year-over-year,this ratio declined to 0.6.We thus achieved the forecast provided in our Combined Management Report 2022,which was to achieve a ratio of up to 1.5.Combined Management Report 21 Free cash flow from continuing and discontinued operations for fi

324、scal 2023 was 10.0 billion,reaching a record high.The cash conversion rate for Siemens,defined as the ratio of Free cash flow from continuing and discontinued operations to Net income,was 1.17.We thus achieved a cash conversion rate that contributed strongly to the average required to reach our targ

325、et of 1 minus annual comparable revenue growth rate over a cycle of three to five years.We intend to continue providing an attractive shareholder return.The Siemens Managing Board,in agreement with the Supervisory Board,proposes a dividend of 4.70 per share,up from 4.25 per share a year earlier.Comb

326、ined Management Report 22 8.Report on expected developments and associated material opportunities and risks 8.1 Report on expected developments 8.1.1 Worldwide economy The global economy showed remarkable resilience in calendar 2023,given the number of headwinds and negative economic shocks from the

327、 previous year.Nevertheless,these shocks still have adverse implications for economic growth in calendar 2024,especially the dampening effects of tighter financial conditions.Accordingly,in calendar 2024 the global economy is expected to further slow down to 2.3%GDP growth,after 2.6%in calendar 2023

328、.Given the high number of active and potential geopolitical conflicts,the outlook is subject to a high level of uncertainty.In the E.U.,GDP is expected to increase by 0.8%in calendar 2024,after an anticipated growth of 0.4%in calendar 2023.The effects of the energy crisis still show negative impacts

329、,especially in energy-intensive industries.Tighter monetary policy the European Central Bank lifted the main policy interest rate to 4.5%in just over one year also held back growth,particularly in the construction industry.The German economy is most impacted due to its proportionally large manufactu

330、ring sector and is expected to grow by only 0.5%in calendar 2024.The U.S.economy is expected to decelerate to a soft landing.After unexpectedly strong GDP growth(expected to be+2.5%)in calendar 2023,caused mainly by a very strong services sector while industry was weak,growth in calendar 2024 is exp

331、ected to slow down to 1.6%.Tighter financial conditions the Federal Reserve increased the main policy interest rate to 5.5%and longer-term interest rates also increased substantially will unfold their full effect next year.Hence,a short and shallow recession during calendar 2024,while not our baseli

332、ne assumption,is also possible and expected by some economists.Consumer spending is expected to continue as a primary growth driver,while government investment programs(CHIPS Act,Inflation Reduction Act)play a supporting role for the economy as they spur business investment.GDP in China is expected

333、to grow at only 4.6%in calendar 2024,after an anticipated growth of 5.0%in calendar 2023.The correction in the real estate sector will continue to weigh on GDP growth.During calendar 2024 global goods demand,world trade and industrial production are expected to modestly increase again.The main assumption behind this expectation is further normalization for two critical factors:consumer spending an