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1、 Siemens Report for fiscal 2024 Table of reports Combined Management ReportConsolidated Financial StatementsResponsibility Statement(Siemens Group)Independent Auditors Reports(Siemens Group)Annual Financial StatementsResponsibility Statement(Siemens AG)Independent Auditors Report(Siemens AG)Five-Yea

2、r SummaryCompensation ReportReport of the Supervisory BoardCorporate Governance StatementNotes and forward-looking statements Combined Management Report for fiscal 2024 Table of contents Combined Management Report 3 4 4 4 4 4 5 6 6 6 8 9 10 11 12 13 13 14 14 15 16 16 17 19 20 20 22 23 27 28 31 31 32

3、 32 33 33 33 33 33 35 35 35 36 1.Organization of the Siemens Group and basis of presentation 2.Financial performance system 2.1 Revenue growth 2.2 Profitability and capital efficiency 2.3 Capital structure 2.4 Liquidity and dividend 2.5 Calculations of EPS pre PPA and ROCE 3.Segment information 3.1

4、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 Reconciliation to Consolidated Financial Statements 4.Results of operations 4.1 Orders and revenue by region 4.2 Income 4.3 Research and development 5.

5、Net assets position 6.Financial position 6.1 Capital structure 6.2 Cash flows 7.Overall assessment of the economic position 8.Report on expected developments and associated material opportunities and risks 8.1 Report on expected developments 8.2 Risk management 8.3 Risks 8.4 Opportunities 8.5 Signif

6、icant characteristics of the internal control and risk management system 9.Siemens AG 9.1 Results of operations 9.2 Net assets and financial position 9.3 Corporate Governance statement 10.Takeover-relevant information(pursuant to Sections 289a and 315a of the German Commercial Code)and explanatory r

7、eport 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 governing amendment to the Articles of Association 10.4 Powers

8、 of the Managing Board to issue and repurchase shares 10.5 Significant agreements which take effect,alter or terminate upon a change of control of the Company following a takeover bid 10.6 Compensation agreements with members of the Managing Board or employees in the event of a takeover bid 10.7 Oth

9、er takeover-relevant information 11.EU Taxonomy 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 on the areas of automation and digitalization in the process and manuf

10、acturing industries,intelligent infrastructure for buildings and distributed energy systems,smart mobility solutions for rail transport,and medical technology and digital healthcare services.Siemens comprises Siemens Aktiengesellschaft(Siemens AG),a stock corporation under the Federal laws of German

11、y,as the parent company,and its subsidiaries.Our Company is incorporated in Germany,with our corporate headquarters situated in Munich.As of September 30,2024,Siemens had around 327,000 employees on a continuing and discontinued basis.As of September 30,2024,Siemens has the following reportable segm

12、ents:Digital Industries,Smart Infrastructure,Mobility and Siemens Healthineers,which together form our“Industrial Business”and Siemens Financial Services(SFS),which supports the activities of our industrial businesses and also conducts its own business with external customers.Our reportable segments

13、 may do business with each other,leading to corresponding orders and revenue.Such orders and revenue are eliminated 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

14、and bribery matters,among others.Our business model is described in chapters 1 and 3 of this Combined Management 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

15、 Management Report,in particular in chapters 3 through 7.Forward-looking information,including risk disclosures,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 d

16、isclosures are outlined in chapter 11.As supplementary information,amounts related to such non-financial matters,and additional explanations thereto,are included in Notes to Consolidated Financial Statements for fiscal 2024,Notes 17,18,22,26 and 27,and in the Notes to the Annual Financial Statements

17、 for fiscal 2024,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 2024”document,which are based on the standa

18、rds developed 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 Re

19、port 4 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,b

20、ecause 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 eff

21、ects are the difference between revenue for the current period calculated using the exchange rates of the current period and revenue for the current period calculated using the exchange rates of the comparison period.For calculating the percentage change year-over-year,this absolute difference is di

22、vided 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

23、 period.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 Pro

24、fitability 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

25、margins of their respective relevant competitors.Profit margin is defined as profit of the respective business divided by its revenue.For our industrial businesses,profit represents EBITA adjusted for amortization of intangible assets not acquired in business combinations.We have set the following m

26、argin 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

27、the financial services business,our financial indicator for measuring capital efficiency at SFS is return on equity after tax,or ROE after tax.ROE is defined as SFS profit after tax,divided by its average allocated equity.Primary measure for managing and controlling profit and profitability at Group

28、 level:Net income is the primary driver of basic earnings per share from net income(EPS)as well as of EPS before purchase price allocation accounting(EPS pre PPA)which is used for our capital market communication.EPS pre PPA is defined as basic earnings per share from net income adjusted for amortiz

29、ation 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 profitabl

30、y and as efficiently as possible with the capital provided by our shareholders and lenders.For purposes of managing and controlling our capital efficiency,we use return on capital employed,or ROCE,as our primary measure in our Siemens Financial Framework.Our goal is to achieve a ROCE within a range

31、of 15%to 20%over a cycle of three to five years.2.3 Capital structure Sustainable revenue and profit development is supported by a healthy capital structure.Accordingly,a key consideration within the Siemens Financial Framework is to maintain ready access to the capital markets through various debt

32、products and preserve our ability to repay and service our debt obligations over time.Our primary measure for managing and controlling our capital structure is the ratio of Industrial net debt to EBITDA(continuing operations).This financial measure indicates the approximate amount of time in years t

33、hat would be needed to cover Industrial net debt through income from continuing operations,without taking into account interest,taxes,depreciation and amortization.We aim to achieve a ratio of up to 1.5.2.4 Liquidity and dividend We intend to continue providing an attractive return to our shareholde

34、rs.In 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 div

35、idends,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 Shareho

36、lders 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 2024:to distribute a dividend of 5.20 on each share of no par value entitled to the dividend for fiscal 2024 existing at the

37、date of 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 13,2025.The prior-year dividend was 4.70 per share.2.

38、5 Calculations of EPS pre PPA and ROCE Calculation of EPS pre PPA Fiscal year(in millions of,shares in thousands,earnings per share in)2024 2023 Net income attributable to shareholders of Siemens AG 8,301 7,949 Plus:Amortization of intangible assets acquired in business combinations attributable to

39、shareholders of Siemens AG 659 773 Less:Related income taxes (165)(193)(I)Adjusted Net income attributable to shareholders of Siemens AG 8,795 8,529(II)Weighted average shares outstanding 789 792(I)/(II)EPS pre PPA 11.15 10.77 Calculation of ROCE Fiscal year(in millions of)2024 2023 Net income 8,992

40、 8,529 Less:Other interest expenses/income,net1 (1,020)(1,073)Plus:SFS Other interest expenses/income 1,004 957 Plus:Net interest expenses related to provisions for pensions and similar obligations 76 95 Less:Interest adjustments(discontinued operations)Less:Taxes on interest adjustments(tax rate(fl

41、at)30%)(18)6 Plus:Defined Varian-related acquisition effects(after tax)2 247 251(I)Income before interest after tax 9,281 8,765(II)Average capital employed 48,547 47,001(I)/(II)ROCE 19.1%18.6%1 Item Other interest expenses/income,net primarily consists of interest relating to corporate debt,and rela

42、ted hedging activities,as well as interest income on corporate assets.2 Effects resulting from purchase price allocation for Varian Medical Systems,Inc.(Varian)which are comprised of amortization of tangible and intangible assets,inventory step-ups,deferred revenue adjustments and related income tax

43、es.For purposes of calculating ROCE in interim periods,Income before interest after tax is annualized.Average capital employed is determined using the average of the respective balances as of the quarterly reporting dates for the periods under review.Calculation of capital employed Total equity Less

44、:Goodwill and other intangible assets resulting from purchase price allocation related to the Varian acquisition Plus:Long-term debt Plus:Short-term debt and current maturities of long-term debt Less:Cash and cash equivalents Less:Current tradable interest-bearing debt instruments Less:Fair value of

45、 foreign currency and interest hedges relating to short-and long-term debt Plus:Provisions for pensions and similar obligations Less:SFS debt Plus:Adjustments from assets classified as held for disposal and liabilities associated with assets classified as held for disposal Less:Adjustment for deferr

46、ed taxes on net accumulated 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 The global economy in calendar 2024 continued to face headw

47、inds,especially from trade shifts and geopolitical uncertainties,in the midst of a weak ongoing post-COVID-19 recovery.Global trade tensions included new tariffs and trade barriers announced by the U.S.,E.U.and China.Weak goods demand held back global trade and production.Similar to the previous yea

48、r,the service sector stabilized the economy and supported growth in gross domestic product(GDP).Inflation,although gradually coming down,remained elevated,prompting central banks to maintain tight monetary policies with only some monetary easing starting in the middle of the year.Energy markets stab

49、ilized after volatile periods in prior years,while green energy and electrification investments accelerated.The manufacturing sector was still dominated by destocking effects as firms reversed previous over-ordering and reduced their high level of inventories which they built up as precautionary mea

50、sure during the previous years of supply chain bottlenecks.In addition,investments in new production facilities were weak due to sizeable overcapacities.These overcapacities also had a deflationary impact on producer prices,which were falling in many countries.The U.S.saw again high growth in calend

51、ar 2024,bolstered by strong labor markets,robust consumer spending and continued services sector recovery.GDP is expected to expand by 2.7%.Despite high interest rates aimed at curbing inflation,overall investment spending was strong.The technology and services sectors continued to perform well but

52、manufacturing faced challenges due to weak global demand and overcapacities.Inflation,while declining from peak levels,remained a concern,influencing monetary policy throughout the year.Europes economic performance in calendar 2024 was sluggish,with core economies such as Germany showing the second

53、consecutive year of recession due to a combination of structural problems,especially in energy-intensive industries and key sectors such as automotive,and also due to cyclical weakness including low global goods demand which weighed on important industries for the economy such as machine-building.Ge

54、rmanys real GDP was barely above pre-COVID-19 levels while industrial production was 12%lower than the level in 2018,meaning the industrial sector has been shrinking for more than half a decade.Southern Europe,especially Spain and Greece,fared much better,benefitting from strong tourism,service sect

55、or recovery and recent structural reforms.Increased consumer prices continued to weigh on consumer spending.The European Central Bank started to ease its tight monetary policy in June,with the first rate cut coming only after inflation rates significantly decreased.GDP in calendar 2024 is expected t

56、o grow 0.9%in the E.U.and to decline 0.1%in Germany.Chinas economy faced significant challenges in calendar 2024,with slowing growth attributed to reduced export demand and an ongoing property market recession.The government responded with targeted fiscal stimulus aimed at stabilizing key sectors,pa

57、rticularly the property sector.The timing and size of the stimulus,however,limited its ability to significantly impact economic activity in calendar 2024.Exports remained under pressure while the country continued to focus on self-reliance in technology and innovation in light of increasing trade te

58、nsion with the U.S.Chinese consumer demand remained very weak,as declining household wealth from falling house and stock prices,high youth unemployment and the central governments policy priorities weighed on spending.Chinas GDP is expected to grow by 4.9%in calendar 2024.The partly estimated figure

59、s presented here for GDP are based on an S&P Global report dated October 15,2024.3.2 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

60、factories,numerical 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 r

61、ate,distance or shape)and radio frequency identification systems.Furthermore,Digital Industries offers production and product lifecycle management(PLM)software,and software for simulation and testing of mechatronic systems.These leading software offerings are supplemented by an electronic design aut

62、omation(EDA)software 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 a

63、nd Pixeom.Digital Industries also provides customers with lifecycle and data-driven services.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,were transferred to Innomoti

64、cs,which during the fiscal year was classified as held for disposal and discontinued operations.Fiscal 2023 amounts for Digital Industries are presented on a comparable basis.At the beginning of fiscal 2025,Digital Industries signed an agreement to acquire Altair Engineering Inc.,U.S.,a provider of

65、computational science and artificial intelligence software.Closing of the transaction is subject to customary conditions and is expected within the second half of calendar 2025.Taken together,Digital Industries offerings enable customers to optimize entire value chains from product design and develo

66、pment through production and post-sale services.With its advanced software solutions in particular,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 pro

67、ducts.The most important customer markets include the automotive industry,the machine-building industry,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 orga

68、nization spanning all its businesses,using various sales channels depending on the type of customer 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

69、short-term fluctuation in Digital Industries profitability.Large contracts in the software business,particularly for EDA,may also result in strong fluctuations in quarterly volume and profitability.In fiscal 2024,Digital Industries continued to transition parts of its software business,particularly

70、PLM,from largely upfront revenue recognition towards Software as a Service(SaaS),which 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 in

71、frastructure.Competition with Digital Industries business activities comes primarily from multinational corporations that offer a relatively broad portfolio and from smaller companies active only in certain geographic or product markets.Combined Management Report 7 Digital Industries sees three tren

72、ds influencing its business and providing long-term growth opportunities.Producers of investment goods in todays increasingly digital environment must modernize their production capacity,particularly to increase production flexibility and reduce time to market.This environment also spurs producers t

73、o complement their core products with vertical solutions and service offerings,which their customers either need or want in order to take full advantage of the investment goods.Finally,there is a trend from globalization to regionalization,to support local economic development,to increase supply cha

74、in resilience or to better adapt solutions to local needs.This is increasingly accompanied by more differentiated regulatory requirements.Research&Development(R&D)activities at Digital Industries are aimed at developing solutions that make industry more sustainable,resilient and intelligent and that

75、 enable customers to accelerate their digital transformation.Digital Industries innovations incorporate generative artificial intelligence(AI),immersive technologies,software-defined automation,edge computing,and cloud services,among other advanced technologies.In fiscal 2024,Digital Industries unve

76、iled several innovative solutions as part of 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 that facilitates interactions and transactions between custom

77、ers,partners and developers.Among other things,Digital Industries announced NX Immersive Designer,an integrated solution that combines Digital Industries immersive computer-aided design software and Sony Corporations spatial content creation system;this new solution brings immersive design and colla

78、borative capabilities to Digital Industries product engineering solutions.Also in fiscal 2024,Digital Industries presented the first generative AI product for engineering in an industrial environment.The AI-powered assistant,called Siemens Industrial Copilot,is connected to the Totally Integrated Au

79、tomation(TIA)Portal;it enables engineering teams to generate complex automation code for programmable logic controllers(PLC)and to find the right help topic faster.A breakthrough in software-defined automation was achieved with the market introduction of the new SIMATIC Workstation,which allows manu

80、facturers to replace a PLC,a conventional human-machine interface and an edge device with a single,software-based workstation.In addition,Digital Industries moved to the next level of its Industrial Edge solution by introducing new cloud services,low-code integration and more hardware and software f

81、or the Industrial Edge ecosystem.Finally,Digital Industries launched a new software-as-a-service to automatically identify vulnerable production assets.The cloud-based software SINEC Security Guard improves cybersecurity on the shop floor and provides a connection to Microsoft Sentinel.Major investm

82、ents of Digital Industries in fiscal 2024 relate to its own factory automation,motion control and process automation businesses,to further automate and digitalize facilities particularly in Germany and China.Fiscal year%Change(in millions of)2024 2023 Actual Comp.Orders 17,023 19,387(12)%(10)%Revenu

83、e 18,536 20,636(10)%(8)%therein:software business 6,286 5,067 24%26%Profit 3,498 4,833(28)%therein:severance(63)(104)Profit margin 18.9%23.4%Orders for Digital Industries came in lower year-over-year due to substantially lower order intake in the automation business,most notably in the factory autom

84、ation business,as customers and distributors were reducing elevated stock levels throughout fiscal 2024 due to weak global demand for manufactured goods.This decline was only partly offset by a clear increase in orders in the software business,where the PLM and the EDA businesses both won numerous l

85、arger contracts on growing demand for Digital Industries software offerings.Revenue development showed a similar pattern.Revenue in the automation business was down substantially,with the strongest decline coming from the higher-margin factory automation business,while software revenue rose on doubl

86、e-digit increases in both the PLM and the EDA businesses.On a geographic basis,orders and revenue came in lower in the region Europe,C.I.S.,Africa,Middle East,particularly including Germany,and in Asia,Australia;orders and revenue increased in the Americas region.Profit and profitability for Digital

87、 Industries declined due to sharp decreases in the automation business on lower capacity utilization and a less favorable revenue mix.These respective declines were only partly offset by increases in the software business.At the end of fiscal 2024,Digital Industries order backlog amounted to 9 billi

88、on,of which 6 billion are expected to be converted into revenue in fiscal 2025.The market environment for Digital Industries in fiscal 2024 was challenging and mixed.Overall volume declined due to lower demand in the Europe,C.I.S.,Africa,Middle East region and in the Asia,Australia region,whereas ma

89、rkets served by Digital Industries in the Americas region continued to grow.In all the most important customer segments,market development led to declines in demand for automation solutions,while demand for software solutions increased in all market segments compared to the previous year.The softwar

90、e markets served by Digital Industries grew due to long-term trends such as digitalization,strong demand for semiconductor design and AI.In contrast,the business environment for automation production deteriorated sharply in fiscal 2024,leading to double-digit declines in market volume,after these ma

91、rkets experienced unusually strong growth in previous years,which was fueled by supply chain constraints and strong price increases.With normalization of the supply situation in fiscal 2023 and processing of the order backlog in the automation industry,high inventory levels were built up along the i

92、ndustrial value chain.Destocking of these inventories led to a strong decline in demand for automation products in fiscal 2024,particularly in discrete automation.A weaker macroeconomic environment,particularly in China and Europe,also contributed to the downward trend in fiscal 2024.Within the most

93、 important customer markets,market volume in the automotive and machine-building industries declined significantly.Within the pharmaceutical and chemical industries,the chemicals industry grew only modestly while the pharmaceuticals market declined.Market volume in the food and beverage industry rem

94、ained close to the prior-year level,as a steady expansion in China was offset by lower demand in Europe and the U.S.The semiconductor industry recovered during fiscal 2024 and returned to its long-term trend growth during the second half of the fiscal year,with growth in EDA software benefiting from

95、 increasing semiconductor design complexity and demand for AI.For fiscal 2025,markets served by Digital Industries are expected to return to growth,with all reporting regions expected to contribute,led by the Americas region.The software markets are expected to grow clearly throughout the fiscal yea

96、r.Automation markets are expected to be impacted by further destocking of inventories and subdued macroeconomic development during the first half of fiscal 2025 but are expected to recover gradually during the second half of fiscal 2025,resulting in slight market growth for the full fiscal year.Comb

97、ined Management Report 8 3.3 Smart Infrastructure Smart Infrastructure offers products,systems,solutions,services and software to support the global transition from fossil to renewable energy sources,and the associated transition to smarter,more sustainable buildings and communities.Smart Infrastruc

98、tures versatile portfolio consists of buildings,electrification,and electrical products.Its buildings portfolio addresses the needs of operators,owners,occupants and users of buildings.It spans building management systems and software;heating,ventilation and air conditioning controls;fire safety and

99、 security products and systems;and solutions and services such as energy performance services.Across multiple domains in the built environment,cloud-native software suite covers the entire life cycle of asset management and operations,for maintenance,capital planning and sustainability.With its elec

100、trification 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-voltag

101、e 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 bre

102、akers,contactors and switching for medium voltage.In fiscal 2024,Smart Infrastructure signed an agreement to sell its Wiring Accessories business in China.Closing of the transaction is expected in fiscal 2025.Smart Infrastructures customer and end user base is diverse.It encompasses infrastructure d

103、evelopers,construction companies and contractors;owners,operators and tenants of both public and commercial buildings including hospitals,campuses,airports and data centers;companies in process industries such as oil and gas,mining,pharmaceuticals and chemicals;companies in discrete manufacturing in

104、dustries such as automotive and machine building;and utilities and power grid network operators(transmission and distribution).Smart Infrastructure serves its customers through a broad range of channels,including direct sales organizations,distributors and partners such as panel builders,original eq

105、uipment manufacturers and value-added resellers and installers.To address more complex customer requirements,Smart Infrastructure uses its dedicated worldwide sales forces.Furthermore,Smart Infrastructure provides e-commerce platforms or marketplaces where customers can place orders on-line,either v

106、ia a web shop or via electronic interfaces,and sells its broad range of digital offerings and connected devices via the Siemens Xcelerator marketplace.These digital sales channels and e-commerce platforms are becoming increasingly important and Smart Infrastructure therefore is continuously strength

107、ening its digital omni-channel marketing and e-commerce platforms,with Siemens Xcelerator being an integral part.Smart Infrastructures principal competitors consist mainly of large multinational companies and smaller manufacturers in emerging countries.Its solutions and services business also compet

108、es with local players such as system integrators and facility management firms.Smart Infrastructures businesses are impacted by changes in the overall economic environment to varying degrees,depending on the customer segment and offering.Demand for Smart Infrastructures electrical and building produ

109、cts offerings is driven strongly by macroeconomic cycles,while demand for its systems and solutions offerings changes more slowly,with a time lag of several quarters.In contrast,demand for service offerings shows only limited influence from macroeconomic cycles.Overall,Smart Infrastructure has devel

110、oped a balanced and resilient business mix with its diversified regional and vertical markets;its range of products,systems,solutions and services;and its participation in both long-and short-cycle markets.To further strengthen the resilience of its portfolio,Smart Infrastructure aims to increase th

111、e share of overall revenue that comes from services.Smart Infrastructure benefits from a number of major trends.These include urbanization,demographic change,decarbonization,and digitalization.Urbanization and demographic change drive a need for smarter and more human-centric buildings.Climate chang

112、e 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 sustainable buildings.Digitalization is an enabler for such changes in both buildings and grids,making

113、it possible to develop smarter buildings and manage electricity distribution with a higher share of renewables.The markets served are experiencing shifts that present opportunities where building technologies and electrification meet.Smart Infrastructures R&D activities focus on sustainable and deca

114、rbonizing offerings for buildings,utilities,electricity grid operators,industrial customers and data centers.Smart Infrastructure develops technologies for environmentally friendly and increasingly renewable-based energy systems,ranging from climate-friendly F-gas-free switchgear for medium voltage

115、to charging solutions for eMobility and grid integration of green hydrogen production.By switching electrical currents purely electronically,Smart Infrastructure is expanding a disruptive technology to include more and more data-based functionalities and services.R&D activities in building automatio

116、n address the global need for easy-to-install controls aimed at driving energy efficiency improvements in buildings beyond the commercial sector.Smart Infrastructure is expanding the use of IoT technologies that feed data from the real world into digital twins that mirror their physical counterparts

117、 to simulate and to optimize their activities.In support of this digital twin model,Smart Infrastructure develops software that creates new digital offerings for its platforms Building X,Electrification X and Gridscale X,which form parts of the Siemens Xcelerator platform.These and other offerings a

118、re enhanced using AI and large language models.Smart Infrastructure puts an increasing focus of R&D on the sustainability of its products along the lifecycle,such as with environmentally friendly designs,the use of recycled materials and certified declarations of sustainable features.To a large exte

119、nt,its investments relate to the products businesses.Main capital expenditures areas include the replacement of fixed assets and expansion and optimization of factories and technical equipment,with a strong focus on innovation.Fiscal year%Change(in millions of)2024 2023 Actual Comp.Orders 24,023 22,

120、333 8%9%Revenue 21,368 19,946 7%9%therein:service business 4,556 4,243 7%8%Profit 3,707 3,074 21%therein:severance(50)(50)Profit margin 17.3%15.4%Smart Infrastructure surpassed its very strong prior-year performance,with higher orders,revenue,profit and profitability in all its businesses.Orders ros

121、e clearly with the strongest growth contributions coming from the electrification and the electrical products Combined Management Report 9 businesses.Smart Infrastructure won numerous larger orders during the fiscal year,most notably from data center and energy customers.On a geographic basis,order

122、growth was driven by the Americas due mainly to the U.S.and by Europe,C.I.S.,Africa,Middle East.In contrast,order development in the Asia,Australia region was held back by lower demand from China.Revenue also increased clearly.Growth was highest in the electrification business,which executed strongl

123、y on its large order backlog.On a geographic basis,revenue was up in all reporting regions,led by the Americas.Profit rose substantially.The improvement in profit and profitability was due mainly to higher revenue,increased capacity utilization and ongoing productivity improvements.The strongest pro

124、fit increases came from the buildings and the electrification businesses.Profit in fiscal 2024 included a positive 0.1 billion effect from partial reversal of a liability related to past portfolio activities.At the end of fiscal 2024,Smart Infrastructures order backlog was 18 billion,of which 13 bil

125、lion are expected to be converted into revenue in fiscal 2025.Overall,markets served by Smart Infrastructure grew clearly in fiscal 2024.Market dynamics were influenced by strong customer investments in data centers;a further stabilization in industry supply chains,which led to destocking of invento

126、ries in some industries;weakness in the Chinese market,such as in the building sector;and by geopolitical conflicts.Globally elevated interest rates compared to the recent past held back activities in the building construction industry.On a geographic basis,all reporting regions contributed to marke

127、t growth.Growth was strongest in the Americas,where the U.S.market benefited from strong demand for digitalization,particularly in the field of AI,and from government programs for reindustrialization,among other factors.In Europe,the gradual recovery was slowed by higher interest rates,tighter fisca

128、l policy,and geopolitical conflicts,while growth in Asia was held back by the aforementioned weakness in the Chinese real estate sector,among other things.Among customer segments,growth was led by the grid market.The increase was driven by demand for integration of energy from renewable resources.Sm

129、art Infrastructures industrial markets grew on strong demand in the battery,semiconductor and aerospace industries.Growth in the infrastructure and building markets was driven by strong demand for data centers,partly held back by a weak development in the residential and commercial building market.I

130、n fiscal 2025,markets served by Smart Infrastructure are expected to continue to grow clearly.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.On a geographic

131、basis,markets in Europe are expected to recover from the fiscal 2024 growth weakness.In the Americas,it is likely to be challenging to maintain the pace of growth of the prior fiscal year.Growth in the Asia,Australia region is expected to remain subdued in fiscal 2025.3.4 Mobility Mobility combines

132、all Siemens businesses in the area of rail passenger and rail freight transportation.Within its rolling stock business,its offerings encompass vehicles and selected components for urban and regional transport such as metro systems,trams and light rail,and commuter trains as well as trains and passen

133、ger coaches for intercity and long-distance services,such as high-speed rail.Rolling stock offerings furthermore include locomotives,solutions for automated transportation and leasing solutions.Offerings in its rail infrastructure business include products and solutions for rail automation,such as a

134、utomatic train control systems,interlockings,operations control and telematic systems,digital station solutions and railway communication systems,signaling on-board and signaling crossing products,and yard and depot solutions;and products and solutions for electrification such as AC and DC traction

135、power supply,contact lines and network control.With its service business,Mobility provides maintenance and digital services,among others,for rolling stock and rail infrastructure throughout the entire lifecycle.In its turnkey business,it bundles consulting,planning,financing,construction,service and

136、 operation of complete mobility systems.Mobilitys software business comprises train planning systems,trip planning,mobile ticketing,Mobility as a Service(MaaS)platforms,on-demand transportation and fleet management,data analytics,and inventory and reservation management.Mobility sells its products,s

137、ystems and solutions through its worldwide network of sales and execution units.The principal customers of Mobility are public and state-owned companies in the transportation and logistics sectors,so its markets are driven primarily by public spending.Customers usually have multi-year planning and i

138、mplementation horizons,and their contract tenders therefore tend to be independent of short-term economic trends.Large contracts in the rolling stock and the rail infrastructure business are often awarded together with service contracts,which start to generate revenue only after the respective produ

139、cts and solutions have been put in operation,which can be a number of years after the contract award.Mobility works on demanding,long-term projects.Difficulties such as technical problems,time delays or procurement problems during project execution can result in significant costs for non-compliance.

140、Mobilitys principal competitors are multinational companies.Consolidation among Mobilitys competitors is continuing.The main trends driving Mobilitys markets are urbanization and decarbonization.Increasing populations in urban centers need mobility that is simpler,faster,and more flexible,reliable a

141、nd affordable.At the same time,national economies and cities face the challenge of cutting CO2 and noise emissions and reducing space requirements and costs of transportation.The pressure on mobility providers to meet all these needs is expected to rise continuously.Furthermore,availability,connecti

142、vity,and sustainability of rail infrastructures increasingly require digital solutions.The trend of digitalization is profoundly transforming the rail industry and generates growth opportunities for providers of digital solutions.Mobilitys R&D strategy is focused on reducing life-cycle costs of rail

143、 infrastructures and rolling stock,enhancing system availability,increasing network capacity of rail infrastructures,optimizing the processes of rail operators and improving passenger experience.With Siemens Xcelerator,Mobility enables its customers to accelerate their digital transformation.The aim

144、 is to better connect trains,infrastructures,operators and passengers by modularizing the software portfolio,introducing application programming interfaces(APIs)and gradually moving software to the cloud.APIs enable the secure transmission of standardized information from anywhere in the rail ecosys

145、tem to be used in systems,applications or software modules.Mobilitys major R&D areas include the further development of efficient vehicle platforms with optimized lifecycle cost;eco-friendly,alternative power supplies for trains;the Railigent X application suite for maintenance of rail assets;the Di

146、stributed Smart Safe System(DS3)and Signaling X,which allow for hardware-independent and cloud-compatible signaling;intelligent,interconnected products;automatic train operation for European Train Control System(ETCS);safe artificial intelligence for driverless trains;air-free braking systems;fully

147、automated visual inspections;the Mobility Software Suite X for operators and passengers;and cyber security.Mobilitys investments focus mainly on maintaining or enhancing its production facilities,on meeting project demands,and on enhancing its depot services.Combined Management Report 10 Fiscal year

148、%Change(in millions of)2024 2023 Actual Comp.Orders 15,795 20,629(23)%(23)%Revenue 11,420 10,549 8%9%therein:service business 1,991 1,710 16%17%Profit 1,013 882 15%therein:severance(25)(25)Profit margin 8.9%8.4%Mobility won a number of large orders in fiscal 2024,but overall order intake decreased c

149、ompared to the record-high level of the previous fiscal year,which included an even higher volume from large orders.Important orders in fiscal 2024 included two orders in Austria,totaling 1.3 billion,from existing framework agreements for delivery of trains;and maintenance contracts for locomotives

150、and intercity trains totaling 0.8 billion and a contract of 0.4 billion for light rail,both in the U.S.Revenue rose on increases in all businesses,including a strong growth contribution from the customer service business.On a geographic basis,revenue was up in all reporting regions and included subs

151、tantial growth in the Asia,Australia region.With a combination of higher revenue and strong project execution,all businesses increased their profit and profitability.Profit in fiscal 2023 included a positive 0.2 billion in trailing effects related to the winding down of business activities in Russia

152、.Mobilitys order backlog rose to 48 billion at the end of the fiscal year,of which 11 billion are expected to be converted into revenue in fiscal 2025.Markets served by Mobility grew moderately in fiscal 2024,supported by long-term trends such as urbanization and decarbonization,which continue to dr

153、ive investments in rail transportation.Market growth is backed by public funding,including government investments in national,large-scale rail projects(such as in Egypt and India),stimulus programs(such as in the U.S.and the E.U.)and investments for modernization and digitalization(such as in German

154、y).The strongest growth contributions came from Europe,the Middle East and from the Asia,Australia region.The market for rolling stock included large contract awards for commuter trains,passenger coaches and metro,for example in Europe and in the U.S.Growth in the rail infrastructure market was driv

155、en mainly by strong investments in mass transit,with several Communication-Based Train Control(CBTC)projects in Europe(such as in Germany)and further demand for mainline signaling especially in Europe(such as in Germany),the Middle East,Africa and the Asia,Australia region.In fiscal 2025,markets ser

156、ved by Siemens Mobility are expected to show clear growth.The rolling stock and the service markets are projected to remain strong with multiple large projects upcoming in fiscal 2025.The ongoing demand spreads across all market segments,especially for high-speed(such as in the U.S.and Egypt)and com

157、muter rail(such as in Western Europe),and also for metro(such as in the U.S.).In rail infrastructure,digitalization,especially cloud technology,and modernization investments are driving market growth as the deployment of ETCS and CBTC technology and further investments in track electrification conti

158、nue.On a geographic basis,rail operators in Europe,particularly in Germany and in the U.K.,are expected to continue making significant investments in rolling stock and advanced rail infrastructure solutions.It is expected that customers in the Middle East and in Africa will tender large turnkey proj

159、ects,especially in North Africa and the Middle East such as in Egypt,Saudi Arabia and the United Arab Emirates.Markets in the U.S.are expected to remain strong,especially due to ongoing investments in rolling stock,particularly for high-speed and light-rail transport;within the infrastructure market

160、,demand is expected to continue for mass transit,including CBTC technology,and from a developing market for rail freight solutions.In Asia,the markets in India are expected to remain strong in the coming years due to several very large planned procurement programs for electric multiple units and loc

161、omotives,which are financed by ongoing public funds and seen as crucial to achieving the ambitious goals of Indias national railway strategies,such as increasing the railways share of passenger and freight traffic.3.5 Siemens Healthineers Siemens as majority shareholder holds just over 75%of the sha

162、res of the publicly listed Siemens Healthineers AG,Germany.Siemens Healthineers is a global provider of healthcare products,solutions and services.It develops,manufactures,and sells a diverse range of diagnostic and therapeutic products and services to healthcare providers.In addition,Siemens Health

163、ineers also provides clinical consulting services,as well as an extensive range of training and service offerings.This comprehensive portfolio supports customers along the entire care continuum,from prevention and early detection through to diagnosis,treatment,and follow-up care.The customer spectru

164、m ranges from public and private healthcare providers,including hospitals and hospital systems,public and private clinics and laboratories,universities,physicians/joint medical practices,public health agencies,public and private health insurers,through to pharmaceutical companies and clinical resear

165、ch institutes.The imaging business provides imaging products,services,and solutions as well as digital offerings.Its most important products are devices for magnetic resonance imaging,computed tomography,X-ray,molecular imaging,and ultrasound.The diagnostics business comprises in-vitro diagnostic pr

166、oducts and services that are offered to healthcare providers in the fields of general laboratory,specialty laboratory,and point-of-care diagnostics.The Varian business offers a broad portfolio of cancer care technologies and services that support oncology departments in hospitals and clinics through

167、out the world.The portfolio of the advanced therapies business consists of highly integrated products,services,and solutions that are designed to support image-guided minimally invasive treatments,in areas such as cardiology,interventional radiology,and surgery.Competition in the imaging,Varian and

168、advanced therapies businesses consists mainly of a small number of large multinational companies,while the diagnostics market is fragmented with a variety of global,regional and specialized providers that compete with each other across market segments.Markets of Siemens Healthineers are characterize

169、d by long-term stability,though,over the long term,these markets may also experience shorter-term fluctuations arising from macroeconomic and health political developments,such as changes in health policy,regulation or reimbursement systems.Because a substantial portion of Siemens Healthineers reven

170、ue stems from recurring business,growth opportunities can be pursued from a stable foundation of profit.The addressable markets of 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 c

171、hallenges for global healthcare systems and,at the same time,offers an opportunity for healthcare providers who can meet the growing demand for cost-efficient healthcare solutions.The second trend is economic development in emerging countries,which opens up improved access to healthcare for many peo

172、ple.To improve the healthcare systems of these countries,significant investments are being made,driving overall demand for healthcare products 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 C

173、ombined Management Report 11 and lifestyle-related changes.This trend results in far more patients with multiple morbidities,increasing the need for new ways to detect and treat diseases at an early stage.The fourth global trend,the transformation of healthcare providers such as hospitals and labora

174、tories,results from a combination of societal changes and market forces and forces these institutions to reimagine and redesign the way they deliver their services.This development is driven by a host of factors,including burdens from chronic diseases,growing numbers of medical interventions,the sho

175、rtage of skilled professionals,the rapid pace of scientific progress,societys increasing resistance to growing healthcare costs and the growing professionalization of health insurance and governmental healthcare systems.The growing cost pressure will continue to drive new remuneration models for hea

176、lthcare services such as value-based reimbursement instead of treatment-based reimbursement.As a result of these factors,the trend on customer side of consolidation of healthcare providers into networks continues.The aim of the resulting larger clinic and laboratory chains,often operating internatio

177、nally 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 activities at Siemens Healthineers a

178、re 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 improving the sustainability of the p

179、roducts.Furthermore,the systems of Siemens Healthineers regularly receive extensive software releases to improve user friendliness,add innovative applications,and lengthen the service life of the equipment.Investments at Siemens Healthineers were mainly for spending for factories to expand manufactu

180、ring and technical capabilities,for measures related to improving operational efficiency and for additions to intangible assets,including capitalized development expenses for products within the Atellica and Clinitek product line.Fiscal year%Change(in millions of)2024 2023 Actual Comp.Orders 24,774

181、24,499 1%3%Revenue 22,362 21,681 3%5%Profit 3,172 2,527 26%therein:severance(104)(167)Profit margin 14.2%11.7%In fiscal 2024,Siemens Healthineers recorded an increase of orders and revenue.The imaging and Varian businesses accounted for most of this growth.The diagnostics business declined compared

182、to FY 2023 which included revenue from rapid coronavirus antigen tests.On a geographic basis,orders and revenue increased in the regions Americas and Europe,C.I.S.Africa,Middle East;whereas both declined in the Asia,Australia region,mainly due to currently delayed order placements by customers in Ch

183、ina.Profit was substantially higher year-over-year on increases in most businesses and cost reductions related to the transformation program at the diagnostics business.In contrast,profit declined slightly in the imaging business due to a less favorable business mix.The order backlog for Siemens Hea

184、lthineers was 35 billion at the end of the fiscal year,of which 11 billion are expected to be converted into revenue in fiscal 2025.In general,the addressable global markets of Siemens Healthineers grew moderately in fiscal 2024.From a regional perspective,market growth in the Asia,Australia region

185、was held back by Chinas campaign against corruption in its healthcare sector.The region Europe,C.I.S.,Africa,Middle East,saw market growth in all businesses.However,the high levels of debt in many European countries led to short-term investment cuts,which damped market growth.Furthermore,geopolitica

186、l tensions made for an unsettled market environment.In the Americas region market growth was recorded in all businesses.Globally,higher volume in the market for the imaging business was driven mainly by the demand for product-related services.This demand was generated with the typical time lag that

187、follows equipment sales,which were high in the prior year due to factors such as fulfilled pent-up demand and market normalization.The imaging market is expected to grow moderately overall in fiscal 2025,thanks to new,innovative products for clinical applications,which are expected to stimulate cust

188、omer demand,among other factors.The market for the diagnostics business experienced moderate growth overall in fiscal 2024,thanks to a broad-based normalization of demand for routine tests.On the other hand,market growth was adversely affected by factors such as reduced cost reimbursement rates in c

189、ertain larger markets(e.g.,U.S.,China,Japan),increased inflation pressure on healthcare providers,and rising procurement requirements.The market for the diagnostics business is expected to achieve slight growth in fiscal 2025.In the market for Varian,market growth,especially in the U.S.and Western E

190、urope,was supported by the introduction of new products and innovations,the replacement of aging equipment,and growing demand for services.The market for Varian is expected to grow clearly in fiscal 2025,supported,among other factors,by rising customer demand for new products as well as the introduc

191、tion of progressive therapies and solutions for the treatment of cancer.For advanced therapies business,worldwide replacement purchases were a significant factor contributing to market growth.The expectation for the advanced therapies business is that the market will continue to grow moderately in f

192、iscal 2025.3.6 Siemens Financial 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 busi

193、nesses,SFS supports its customers investments with leasing,lending,working capital and structured financing solutions and offers a broad range of equipment and project financing.In addition,SFS supports Siemens industrial businesses with financial advisory services and via a joint go-to-market that

194、includes SFS risk management 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

195、and projects.Combined Management Report 12 Fiscal year(in millions of)2024 2023 Earnings before taxes(EBT)637 563 therein:equity business 243 201 therein:severance (3)(5)ROE(after taxes)17.6%16.3%Sep 30,Sep 30,(in millions of)2024 2023 Total assets 32,841 32,915 SFS recorded higher earnings before t

196、axes in the debt business due mainly to lower expenses for credit risk provisions.The equity business delivered strong results driven by sharply higher gains from sales due mainly to a gain of 0.1 billion from the sale of a stake in an equity investment in India;the share of income from investments

197、accounted for using the equity method came in lower year-over-year,due in part to the sales mentioned above and impairments on equity investments.Net cash from operations(defined as the sum of cash flows from operating and investing activities)amounted to(22)million compared to(733)million in fiscal

198、 2023.In fiscal 2024 and fiscal 2023,net cash from operations comprised Free cash flow of 785 million and 852 million,respectively,while remaining cash flows from investing activities,including from changes in receivables from financing activities,comprised(806)million and(1,585)million,respectively

199、.SFS business scope and capital 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 in

200、dustrial businesses,among other 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

201、 share in the U.S.SFS intends to maintain a highly diversified portfolio across regions,including ongoing participation in the economic development of selected Asian markets.3.7 Reconciliation to Consolidated Financial Statements Profit Fiscal year(in millions of)2024 2023 Siemens Energy Investment

202、479 668 Siemens Real Estate 76 67 Innovation (187)(195)Governance (308)(451)Centrally carried pension expense (63)(102)Amortization of intangible assets acquired in business combinations (747)(865)Financing,eliminations and other items (48)125 Reconciliation to Consolidated Financial Statements (800

203、)(753)Siemens Energy Investment:Siemens transferred a 8.0%stake in Siemens Energy AG to Siemens Pension-Trust e.V.and no longer has significant influence over Siemens Energy AG.As a result,Siemens has ceased accounting for Siemens Energy under the equity method.The remaining 17.1%stake is reported a

204、s a financial asset measured at fair value through other comprehensive income,net of income taxes.The share transfer and termination of equity method accounting resulted in a gain of 0.5 billion for Siemens Energy Investment.The positive result in fiscal 2023 was mainly driven by a partial reversal

205、of an impairment on Siemens stake in Siemens Energy AG.The lower net expenses for Governance were due mainly to higher income related to brand fees.Financing,eliminations and other items included a loss of 0.2 billion from recycling other components of equity from entities in Russia.For comparison,t

206、he prior-year period included a revaluation loss of 0.2 billion on the stake in Thoughtworks Holding Inc.,partly offset by a gain of 0.1 billion from the sale of the Commercial Vehicles business.During fiscal 2024,Siemens ceased to report financial results for Portfolio Companies.Innomotics,which wa

207、s previously reported in Portfolio Companies,was classified as held for disposal and discontinued operations following an agreement to sell that business to KPS Capital Partners,LP.The remaining businesses of Portfolio Companies are included in the item Financing,elimination and other items.These in

208、clude Siemens Logistics and certain regional business activities,mainly Siemens Energy Assets India and the Innomotics low voltage business in India,which have so far remained with Siemens due to country-specific regulatory restrictions.Prior-period amounts are presented on a comparable basis.Beginn

209、ing with fiscal 2025,the items Siemens Energy Investment,Siemens Real Estate and Centrally carried pension expense will be transferred to the item Financing,eliminations and other items.In addition,there will be reclassifications,including Next47,between the item Innovation and the item Financing,el

210、iminations and other items.If this new reporting structure had already existed in fiscal 2024,the item Innovation and the item Financing,eliminations and other items would have recorded(134)million and 389 million in profit,respectively.Combined Management Report 13 4.Results of operations 4.1 Order

211、s and revenue by region Currency translation effects took two percentage points each from order and revenue development year-over-year,respectively.Portfolio effects had a minimal impact.The ratio of orders to revenue(book-to-bill)for Siemens in fiscal 2024 was 1.11.The order backlog as of September

212、 30,2024 was 113 billion.Orders(location of customer)Fiscal year%Change(in millions of)2024 2023 Actual Comp.Europe,C.I.S.,Africa,Middle East 39,175 41,362(5)%(5)%therein:Germany 11,289 14,676(23)%(23)%Americas 27,837 25,843 8%10%therein:U.S.23,527 21,719 8%10%Asia,Australia 17,044 22,165(23)%(20)%t

213、herein:China 7,233 8,176(12)%(8)%Siemens(continuing operations)84,056 89,371(6)%(4)%On a worldwide basis,Mobility reported a substantial order decline from a high basis of comparison a year earlier,and Digital Industries saw a decline in its automation business.In contrast,orders grew clearly at Sma

214、rt Infrastructure and slightly at Siemens Healthineers.In the Europe,C.I.S.,Africa,Middle East region,Smart Infrastructure and Siemens Healthineers reported order growth,largely offsetting double-digit declines at Digital Industries and Mobility.In Germany,the substantial decline in order intake pri

215、marily stems from sharply lower volume from large orders at Mobility.Order intake rose in both the Americas region and the U.S.across all industrial businesses.Mobility and Smart Infrastructure recorded double-digit increases,both with larger contract wins.In the Asia,Australia region,order intake w

216、as lower compared to the prior year across all industrial businesses.The largest decline was in Mobility,from a high basis of comparison in fiscal 2023.In China,order declines were not as high as in the region,coming mainly from decreases at Digital Industries and Siemens Healthineers.Overall,order

217、development in both the region and in China was burdened by negative currency translation effects.Revenue(location of customer)Fiscal year%Change(in millions of)2024 2023 Actual Comp.Europe,C.I.S.,Africa,Middle East 35,254 35,428 0%0%therein:Germany 11,298 12,194(7)%(7)%Americas 23,755 21,899 8%11%t

218、herein:U.S.20,024 18,177 10%12%Asia,Australia 16,921 17,555(4)%1%therein:China 8,082 8,743(8)%(4)%Siemens(continuing operations)75,930 74,882 1%3%Worldwide,revenue rose slightly.Clear revenue increases at Mobility and Smart Infrastructure,along with a moderate increase at Siemens Healthineers,offset

219、 a decline in Digital Industries due to the automation business.Revenue in Europe,C.I.S.,Africa,Middle East was flat,as growth at Siemens Healthineers,Mobility and Smart Infrastructure was offset by a revenue decrease at Digital Industries.The clear revenue decrease in Germany stems from significant

220、 declines at Digital Industries and Mobility.In contrast,Siemens Healthineers and Smart Infrastructure reported higher revenues.In the Americas region,revenue was up in all four industrial businesses,led by Smart Infrastructure with double-digit growth.The U.S.largely showed the same pattern as the

221、region,with significant growth at Smart Infrastructure and Mobility.In the Asia,Australia region,substantial revenue growth at Mobility and a moderate increase at Smart Infrastructure were more than offset by clear declines at Digital Industries and Siemens Healthineers.In China,revenues declined cl

222、early in nearly all industrial businesses,with only Mobility reporting a slight increase.As with orders,revenue development both in the region and in China was held back by negative currency translation effects.Combined Management Report 14 4.2 Income Fiscal year (in millions of,earnings per share i

223、n)2024 2023%Change Digital Industries 3,498 4,833(28)%Smart Infrastructure 3,707 3,074 21%Mobility 1,013 882 15%Siemens Healthineers 3,172 2,527 26%Industrial Business 11,390 11,316 1%Profit margin Industrial Business 15.5%15.5%Siemens Financial Services 637 563 13%Reconciliation to Consolidated Fin

224、ancial Statements (800)(753)(6)%Income from continuing operations before income taxes 11,227 11,126 1%Income tax expenses(2,320)(2,600)11%Income from continuing operations 8,907 8,525 4%Income from discontinued operations,net of income taxes 85 3 200%Net income 8,992 8,529 5%Basic EPS 10.53 10.04 5%

225、EPS pre PPA 11.15 10.77 3%ROCE 19.1%18.6%As a result of the developments described in chapter 3,Income from continuing operations before income taxes increased by 1%.Severance charges for continuing operations were 312 million,of which 243 million were in Industrial Business.In fiscal 2023,severance

226、 charges for continuing operations were 416 million,of which 346 million were in Industrial Business.The tax rate in fiscal 2024 was 21%(fiscal 2023:23%),benefiting from a reversal of income tax provisions and from tax-free gains in relation to the transfer of an 8%stake in Siemens Energy AG to Siem

227、ens Pension-Trust e.V.and the associated termination of equity method accounting.As a result,the increase in Income from continuing operations was 4%.Income from discontinued operations,net of income taxes in fiscal 2024 benefited from a reversal of income tax provisions;this effect was partially of

228、fset by a loss at Innomotics due to tax expenses and transaction costs related to its carve-out.The increase in Basic EPS and in EPS pre PPA reflects the increase of Net income attributable to Shareholders of Siemens AG,which was 8,301 million in fiscal 2024 compared to 7,949 million in fiscal 2023,

229、combined with a lower number of weighted average shares outstanding.Our investment in Siemens Energy AG contributed 0.61 to EPS pre PPA(fiscal 2023:0.84).At 19.1%,ROCE is near the upper end of the range established in our Siemens Financial Framework.The increase year-over-year was due primarily to h

230、igher net income.4.3 Research and development In fiscal 2024,we reported R&D expenses of 6.3 billion,compared to 6.1 billion in fiscal 2023.The resulting R&D intensity,defined as the ratio of R&D expenses to revenue,was 8.3%(fiscal 2023:8.2%).Additions to capitalized development expenses amounted to

231、 0.2 billion in fiscal 2024,compared to 0.3 billion in fiscal 2023.As of September 30,2024,Siemens worldwide held approximately 41,700 granted patents in its continuing operations.On average,we had 51,600 R&D employees in fiscal 2024.Our research and development activities are ultimately geared to d

232、eveloping innovative,sustainable solutions for our customers and our businesses while also strengthening our own competitiveness.Joint implementation by the operating units and Technology,our central R&D department,ensures that research activities and business strategies are closely aligned with one

233、 another,and that all units benefit equally and quickly from technological developments.Siemens core technologies have been determined to be critical for our Companys long-term success and that of our customers.They are bundled in eleven technology areas:advanced manufacturing and circularity,cybers

234、ecurity and trust,data analytics and artificial intelligence,power 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 a

235、lso through our open innovation concept.We work closely with scholars from leading universities,research institutions and academic start-ups,not only under bilateral cooperation agreements but also in publicly funded collective projects.Our focus here is on our strategic research partners and in par

236、ticular the Siemens Research and Innovation Ecosystems,which we maintain at 16 locations worldwide.Siemens global venture capital unit,Next47,provides capital to help start-ups expand and scale.It serves as the creator of next-generation businesses for Siemens by building,buying and partnering with

237、innovative companies at any stage.Next47 is focused on anticipating how emerging technologies will influence our end markets.This foreknowledge enables our Company and our customers to grow and thrive in the age of digitalization.Combined Management Report 15 5.Net assets position Sep 30,(in million

238、s of)2024 2023%Change Cash and cash equivalents 9,156 10,084(9)%Trade and other receivables 16,963 17,405(3)%Other current financial assets 10,492 10,605(1)%Contract assets 7,985 7,581 5%Inventories 10,923 11,548(5)%Current income tax assets 1,767 1,363 30%Other current assets 1,632 1,955(17)%Assets

239、 classified as held for disposal 2,433 99 200%Total current assets 61,353 60,639 1%Goodwill 31,384 32,224(3)%Other intangible assets 9,593 10,641(10)%Property,plant and equipment 12,242 11,938 3%Investments accounted for using the equity method 980 3,014(67)%Other financial assets 27,388 22,855 20%D

240、eferred tax assets 2,677 2,235 20%Other assets 2,196 1,523 44%Total non-current assets 86,459 84,432 2%Total assets 147,812 145,071 2%Our total assets at the end of fiscal 2024 were influenced by negative currency translation effects of 3.9 billion(particularly affecting goodwill,trade and other rec

241、eivables,other financial assets and other intangible assets),primarily involving the U.S.dollar.Following the classification of Innomotics as held for disposal and discontinued operations,the assets of Innomotics were reclassified to assets classified as held for disposal,which thereby increased by

242、2.3 billion.For further information,please refer to Note 3 in Notes to Consolidated Financial Statements for fiscal 2024.The change in accounting for our remaining stake in Siemens Energy AG from equity method accounting to measurement at fair value through other comprehensive income,net of income t

243、axes,was the main factor for the decrease of investments accounted for using the equity method and the increase of other financial assets.For further information see Notes 4 and 23 in Notes to Consolidated Financial Statements for fiscal 2024.The increase in other assets resulted mainly from higher

244、net defined benefit assets related to defined benefit plans,mainly in Germany.Intangible Resources Siemens has substantial intangible resources beyond assets recorded on the balance sheet.These include the high qualifications and motivation of our employees,which form a significant basis of Siemens

245、innovation strength and are reflected in our numerous intellectual property rights.Together with our financial strength,global presence,and international supplier network,we offer innovative products,services,and industry solutions to our global customer base.These resources are among the value driv

246、ers of the Siemens brand.Combined Management Report 16 6.Financial position 6.1 Capital structure Sep 30,(in millions of)2024 2023%Change Short-term debt and current maturities of long-term debt 6,598 7,483(12)%Trade payables 8,843 10,130(13)%Other current financial liabilities 2,006 1,613 24%Contra

247、ct liabilities 12,855 12,571 2%Current provisions 2,730 2,320 18%Current income tax liabilities 1,805 2,566(30)%Other current liabilities 7,833 8,182(4)%Liabilities associated with assets classified as held for disposal 1,245 50 200%Total current liabilities 43,913 44,913(2)%Long-term debt 41,321 39

248、,113 6%Provisions for pensions and similar obligations 912 1,426(36)%Deferred tax liabilities 1,483 1,655(10)%Provisions 1,120 1,463(23)%Other financial liabilities 864 1,516(43)%Other liabilities 1,968 1,933 2%Total non-current liabilities 47,667 47,106 1%Total liabilities 91,581 92,019 0%Debt rati

249、o 62%63%Total equity attributable to shareholders of Siemens AG 51,264 47,782 7%Equity ratio 38%37%Non-controlling interests 4,967 5,270(6)%Total liabilities and equity 147,812 145,071 2%Due to the classification of Innomotics as held for disposal and discontinued operations the Innomotics liabiliti

250、es were reclassified to liabilities associated with assets classified as held for disposal,which thereby increased by 1.2 billion.For further information,please refer to Note 3 in Notes to Consolidated Financial Statements for fiscal 2024.The decrease of short-term debt and current maturities of lon

251、g-term debt was due mainly to the repayment of euro and U.S.dollar instruments totaling 5.5 billion.This was largely offset by the reclassifications of long-term instruments.Trade payables decreased in most businesses,particularly at Digital Industries,and from the classification of Innomotics as he

252、ld for disposal and discontinued operations.The increase in other current financial liabilities was driven mainly by a put option for up to an additional 5%of the shares in Siemens Limited,India granted to the Siemens Energy group(Siemens Energy).For further information,please refer to Note 3 in Not

253、es to Consolidated Financial Statements for fiscal 2024.This increase was partly offset by decreased accrued interest expenses and an improvement in the negative fair values of derivative financial instruments.The latter factor is also the main driver for the decrease of other financial liabilities.

254、The decrease of current income tax liabilities was due mainly to a reversal of income tax provisions.Long-term debt increased due primarily to the issuance of euro bonds totaling 5.8 billion.Set against this were various debt-reducing factors,mainly the above-mentioned reclassifications and favorabl

255、e currency translation effects of 0.8 billion on bonds issued in the U.S.dollar.Provisions for pensions and similar obligations decreased mainly driven by the transfer of an 8%stake in Siemens Energy AG to Siemens Pension-Trust e.V.and a reassignment of assets to a newly established contractual trus

256、t arrangement(CTA).Actuarial losses due to a lower discount rate were more than offset by a positive return on plan assets.The main factors for the increase in total equity attributable to shareholders of Siemens AG were 8.3 billion in net income attributable to shareholders of Siemens AG and a posi

257、tive other comprehensive income,net of income taxes,of 2.0 billion.The latter resulted mainly from our stake in Siemens Energy AG(measured at fair value),partly offset by negative currency translation effects.Set against this increase were dividend payments of 3.7 billion(for fiscal 2023);1.7 billio

258、n for the acquisition of 18%of the shares in Siemens Limited,India from Siemens Energy;and 0.7 billion related to the grant of a put option for up to an additional 5%of the shares in Siemens Limited,India to Siemens Energy;for further information on these transactions,please refer to Note 3 in Notes

259、 to Consolidated Financial Statements for fiscal 2024.Another offsetting factor was the repurchase of treasury shares totaling 1.6 billion.Capital structure ratio Our capital structure ratio as of September 30,2024 increased to 0.7 from 0.6 a year earlier.The change was due to an increase in Industr

260、ial net debt,driven mainly by the above-mentioned increase in long-term debt,and to lower EBITDA.Combined Management Report 17 Debt and credit facilities As of September 30,2024,we recorded,in total,41.5 billion in notes and bonds,2.9 billion in loans from banks,0.4 billion in other financial indebt

261、edness and 3.1 billion in lease liabilities.Notes and bonds were issued mainly in the U.S.dollar and 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 30,2024.For further information about our debt see Note 16 in Not

262、es to Consolidated Financial Statements for fiscal 2024.For further information about the functions and objectives of our financial risk management,see Note 25 in Notes to Consolidated Financial Statements for fiscal 2024.Off-balance-sheet commitments As of September 30,2024,the undiscounted amount

263、of maximum potential future payments related primarily to credit and performance guarantees amounting to 4.1 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 Si

264、emens Energy.In addition to these commitments,there are contingent liabilities 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 t

265、o 4.0 billion.A considerable portion of these commitments resulted from asset-based lending transactions,meaning that the respective loans can be drawn only after the borrower has provided sufficient collateral.For further information about our commitments and contingencies see Notes 21 and 25 in No

266、tes to Consolidated Financial Statements for fiscal 2024.Share buyback The share buyback that started on November 15,2021 with a volume of up to 3 billion was completed prematurely on January 25,2024 with a volume of 3 billion.The share buyback program announced on November 16,2023 with a volume of

267、up to 6 billion ending January 31,2029 at the latest,began on February 12,2024.In fiscal 2024,Siemens repurchased 10,015,957 shares under these share buyback programs.6.2 Cash flows Fiscal year(in millions of)2024 Cash flows from operating activities Net income 8,992 Change in operating net working

268、capital(798)Other reconciling items to cash flows from operating activities continuing operations 3,620 Cash flows from operating activities continuing operations 11,814 Cash flows from operating activities discontinued operations(149)Cash flows from operating activities continuing and discontinued

269、operations 11,665 Cash flows from investing activities Additions to intangible assets and property,plant and equipment (2,088)Acquisitions of businesses,net of cash acquired(413)Change in investments and financial assets for investment purposes 216 Change in receivables from financing activities of

270、SFS(1,150)Other disposals of assets 297 Cash flows from investing activities continuing operations(3,138)Cash flows from investing activities discontinued operations(144)Cash flows from investing activities continuing and discontinued operations(3,282)Cash flows from financing activities Purchase of

271、 treasury shares(1,625)Re-issuance of treasury shares and other transactions with owners(2,140)Issuance of long-term debt 6,688 Repayment of long-term debt(including current maturities of long-term debt)(6,045)Change in short-term debt and other financing activities(179)Interest paid(1,462)Dividends

272、 paid to shareholders of Siemens AG(3,709)Dividends attributable to non-controlling interests(389)Cash flows from financing activities continuing operations(8,860)Cash flows from financing activities discontinued operations(20)Cash flows from financing activities continuing and discontinued operatio

273、ns(8,880)Industrial Business recorded cash inflows from operating activities that exceeded its profit,with the highest contribution from Smart Infrastructure.Cash outflows from changes in operating net working capital were due primarily to Digital Industries,Siemens Healthineers and Smart Infrastruc

274、ture while Mobility recorded cash inflows from changes in net operating working capital mainly resulting from a change in contract liabilities.Combined Management Report 18 Cash inflows for change in investments and financial assets for investment purposes included proceeds from the sale of equity i

275、nvestments at SFS.Cash outflows from change in receivables from financing activities of SFS related primarily to SFS debt business.Cash inflows from other disposals of assets resulted mainly from property sales by Siemens Real Estate.Cash outflows from the re-issuance of treasury shares and other tr

276、ansactions with owners were driven by the acquisition of shares in Siemens Limited,India,from the Siemens Energy Group.Cash outflows for dividends attributable to non-controlling interests mainly included dividends paid to the shareholders of Siemens Healthineers AG.With our ability to generate posi

277、tive operating cash flows of 11.7 billion from continuing and discontinued operations in fiscal 2024,our total liquidity(defined as cash and cash equivalents plus current tradable interest-bearing debt securities)of 10.2 billion,our unused lines of credit,and our credit ratings at year-end,we believ

278、e that we have sufficient flexibility to fund our capital requirements.Also in our opinion,our operating net working capital is sufficient for our present requirements.Cash conversion rate Fiscal year 2024 Fiscal year 2023(in millions of)Continuing operations Discontinued operations Continuing and d

279、iscontinued operations Continuing operations Discontinued operations Continuing and discontinued operations Cash flows from operating activities 11,814(149)11,665 12,293(54)12,239 Additions to intangible assets and property,plant and equipment (2,088)(84)(2,172)(2,146)(72)(2,218)(I)Free cash flow 9,

280、726(233)9,494 10,146(126)10,021(II)Net income 8,992 8,529(I)/(II)Cash conversion rate 1.06 1.17 We achieved again a cash conversion rate that clearly exceeded the average required to reach our target of 1 minus annual comparable revenue growth rate over a cycle of three to five years.Investing activ

281、ities Additions to intangible assets and property,plant and equipment from continuing operations totaled 2.1 billion in fiscal 2024.Within the industrial businesses,ongoing investments related mainly to technological innovations;maintaining,extending and digitalizing our capacities for designing,man

282、ufacturing and marketing new solutions;improving productivity;and replacements of fixed assets.These investments amounted to 1.5 billion in fiscal 2024.The remaining portion related mainly to Siemens Real Estate,including significant amounts for projects such as new office buildings in Germany.Sieme

283、ns Real Estate is responsible for uniform and comprehensive management of Company real estate worldwide(except for Siemens Healthineers)and supports the industrial businesses and corporate activities with customer-specific real estate solutions.With regard to capital expenditures,we expect a signifi

284、cant increase in fiscal 2025.Significant amounts will be invested in the coming years for the construction and expansion of high-tech production facilities in the U.S.,China and Singapore in the context of the 2 billion investment strategy presented in fiscal 2023 to strengthen growth,innovation and

285、 resilience.As part of this investment strategy,Siemens also announced the establishment of its new Technology Campus in Erlangen,Germany,to expand development and manufacturing capacities.In addition,up to 0.6 billion are to be invested in the new urban quarter Siemensstadt Square in Berlin.Further

286、 investments are planned in relation to new office buildings in Spain and Germany,including Siemens Campus Erlangen,and the Siemens Technology Center in Garching,Germany.Furthermore,we continue to invest in attractive innovation fields through Next47,our global venture capital unit.Combined Manageme

287、nt Report 19 7.Overall assessment of the economic position In fiscal 2024,Siemens again delivered an outstanding performance and achieved its highest net income ever.Our industrial businesses successfully address important long-term trends such as electrification,digitalization,decarbonization and g

288、rowing and aging populations.In divergent market dynamics,our Industrial Business overall achieved strong results.Smart Infrastructure and Mobility increased revenue,profit and profitability in all their businesses.Markets at Smart Infrastructure were characterized by strong demand for data centers

289、and power distribution,while urbanization and the requirement to reduce CO2 emissions continue to drive investments in Mobilitys markets for rail transportation.Revenue,profit and profitability also rose at Siemens Healthineers in moderately growing healthcare markets.Within Digital Industries,the s

290、oftware business likewise increased revenue,profit and profitability,benefiting from the need for digitalization and strong demand for semiconductor design and AI.While long-term trends such as the digitalization of manufacturing continue unchanged,Digital Industries automation business faced challe

291、nging market conditions in fiscal 2024.Customers and distributors continued to reduce elevated stock levels throughout fiscal 2024,but at a slower pace than expected at the beginning of fiscal 2024 due to weak global demand for manufactured goods.This was particularly evident in discrete automation

292、and in Digital Industries most important regional markets such as Europe and China.As a result of these adverse conditions,revenue,profit and profitability at Digital Industries overall came in lower year-over-year.During fiscal 2024 and at the beginning of fiscal 2025,we continued to make significa

293、nt progress in focusing and strengthening our business activities.We further reduced our stake in Siemens Energy AG in fiscal 2024 to 17.1%by transferring an 8.0%share in the company to Siemens Pension-Trust e.V.At the beginning of fiscal 2025,we successfully completed the sale of our motors and lar

294、ge drives company,Innomotics,and signed an agreement to sell our airport logistics business,Siemens Logistics.Also at the beginning of fiscal 2025,we signed an agreement to acquire Altair Engineering Inc.,U.S.,a provider of computational science and artificial intelligence software.The Altair and Si

295、emens Logistics transactions are expected to close in the course of calendar 2025.In fiscal 2024,orders for Siemens came in 6%lower year-over-year at 84.1 billion;the book-to-bill ratio was strong at 1.11,thus fulfilling our expectation of a ratio above 1.Order development included double-digit decr

296、eases at Mobility,due mainly to substantially lower volume from large orders year-over-year,and at Digital Industries due to substantially lower order intake in its automation business.In contrast,Smart Infrastructure reported a clear order increase,with the strongest growth contributions coming fro

297、m the electrification and the electrical products businesses.Orders were slightly higher at Siemens Healthineers.Siemens revenue rose to 75.9 billion,up 1%compared to fiscal 2023.Smart Infrastructure and Mobility increased revenue clearly year-over-year,and revenue at Siemens Healthineers was up mod

298、erately.Revenue growth at Smart Infrastructure was led by the electrification business,which executed strongly on its large order backlog,while growth at Mobility included a strong contribution from the customer service business.Higher revenue at Siemens Healthineers was driven by the imaging and Va

299、rian businesses.These increases were partly offset by lower revenue at Digital Industries due to declines in its automation business.On a comparable basis,excluding currency translation and portfolio effects,revenue for Siemens rose 3%.We thus came in below the forecast provided in our Combined Mana

300、gement Report for fiscal 2023,which was to achieve comparable revenue growth in the range of 4%to 8%.Profit Industrial Business was 11.4 billion,slightly exceeding the very strong prior-year level.The strongest increases came from Siemens Healthineers on growth in most businesses and from Smart Infr

301、astructure due mainly to higher revenue,increased capacity utilization and productivity improvements.Profit at Mobility rose on a combination of higher revenue and strong project execution,while profit at Digital Industries came in lower due to a sharp decrease in the automation business on lower ca

302、pacity utilization and a less favorable revenue mix.The profit margin of our Industrial Business was 15.5%,matching the very high prior-year level.Siemens Healthineeres and Smart Infrastructure achieved the strongest increases,improving their profit margins to 14.2%and 17.3%,respectively.Mobility in

303、creased its profit margin clearly to 8.9%.While Digital Industries continued to contribute the highest profit margin of our industrial businesses,the profit margin declined significantly year-over-year to 18.9%.Earnings before taxes at SFS increased significantly driven by increases in both its equi

304、ty and debt businesses.Return on equity after tax for SFS rose to 17.6%.Within Reconciliation to Consolidated Financial Statements,the above-mentioned transfer of an 8.0%stake in Siemens Energy AG to Siemens Pension-Trust e.V.and the termination of equity method accounting for our share in the compa

305、ny resulted in a gain of 0.5 billion in fiscal 2024.Net income reached another historic high of 9.0 billion,and corresponding basic EPS increased to 10.53.EPS pre PPA rose to 11.15.Excluding a positive 0.61 per share related to Siemens Energy Investment,EPS pre PPA was 10.54.We thus achieved the for

306、ecast provided in our Combined Management Report for fiscal 2023,which was to achieve EPS pre PPA,excluding Siemens Energy Investment in a range of 10.40 to 11.00.ROCE for fiscal 2024 rose to 19.1%.This increase was due to higher Net income year-over-year.We thus achieved the forecast for ROCE provi

307、ded in our Combined Management Report 2023,which was to be within our target range of 15%to 20%.We evaluate our capital structure using the ratio of Industrial net debt to EBITDA.In fiscal 2024,this ratio was 0.7.We thus achieved the forecast provided in our Combined Management Report 2023,which was

308、 to achieve a ratio of up to 1.5.Free cash flow from continuing and discontinued operations for fiscal 2024 was an excellent 9.5 billion,only moderately below the record high of 10.0 billion in fiscal 2023.The cash conversion rate for Siemens,defined as the ratio of Free cash flow from continuing an

309、d discontinued operations to Net income,was 1.06.We thus achieved a cash conversion rate that contributed strongly to the average required to reach our target of 1 minus annual comparable revenue growth rate of Siemens over a cycle of three to five years.We intend to continue providing an attractive

310、 shareholder return.The Siemens Managing Board,in agreement with the Siemens Supervisory Board,proposes to increase the dividend to 5.20 per share,up from 4.70 per share a year earlier.Combined Management Report 20 8.Report on expected developments and associated material opportunities and risks 8.1

311、 Report on expected developments 8.1.1 Worldwide economy The global economy is projected to grow by 2.8%in calendar 2025,maintaining a trajectory similar to the estimated growth in calendar 2024.This outlook is based on moderate improvement for the global economy overall,but key dynamics such as sec

312、toral performance,inflation trends,and geopolitical risks will play crucial roles in shaping economic developments.The services sector is expected to be the primary engine of growth in calendar 2025,continuing its robust performance as industrial growth remains more subdued.Although there will be so

313、me acceleration in industrial activity,manufacturing development is anticipated to lag behind due to existing overcapacity and slow demand for manufacturing output.Nevertheless,declining interest rates as a result of easing inflationary pressures should offer some support for industrial expansion,pa

314、rticularly toward the latter half of the year.As inflation begins to stabilize,central banks in major economies,such as the U.S.and the Eurozone,are expected to reduce policy rates by 1 to 1.5 percentage points by the end of calendar 2025.This monetary easing will have a lagged but positive effect o

315、n residential and non-residential investment,equipment purchases,and consumer credit,fueling further growth.However,core inflation remains a concern,and any delays in additional rate cuts could temper these positive effects.In the U.S.,economic growth is expected to slow from 2.7%in calendar 2024 to

316、 2.1%in calendar 2025.While the country is unlikely to face a recession,the softness in industrial production remains a concern.However,there are potential growth opportunities in equipment investments,particularly as the effects of recent factory construction begin to materialize.The U.S.economy wi

317、ll benefit from declining interest rates and easing inflation,which are expected to support consumer spending and investment in the second half of the year.The E.U.s economic recovery is expected to be modest,with GDP projected to increase by 1.4%in calendar 2025,up from 0.9%in calendar 2024.The reg

318、ion will benefit from rising real incomes,declining unemployment,and lower financing costs,all of which should help bolster domestic demand.However,Germany remains a weak spot in the broader E.U.economy,with only 0.6%growth expected in calendar 2025 following two consecutive years of mild recession

319、with a GDP decline of 0.1%in both years.While other E.U.countries show more promise,Germanys slow recovery will weigh on overall regional growth.Chinas economic growth is expected to decelerate again,with GDP projected to grow by 4.6%in calendar 2025,down from 4.9%in calendar 2024.This slowdown refl

320、ects ongoing challenges in the Chinese economy,including sluggish consumer demand and structural issues within its industrial base.However,recently announced stimulus measures could provide some upside potential.Chinas deflationary environment,particularly in producer prices,is also expected to ease

321、 in calendar 2025,offering some additional support for industrial recovery and investment.Substantial risks remain,nevertheless.First,a slower-than-expected industrial recovery and prolonged industry destocking could weigh on factory investments.Additionally,if core inflation stays elevated,further

322、rate cuts may be postponed,which could slow the recovery in investment and consumer spending.Furthermore,geopolitical tensions remain a significant concern,particularly the potential for an escalation in Ukraine,or in the Middle East,which could lead to or disruptions in the supply of energy or to t

323、he blockade of important shipping routes.Additionally,any further or escalating geopolitical conflicts or increasing protectionism could have severe consequences for global trade and economic stability.In summary,a mixed picture emerges for the economy and Siemens markets in 2025.While global growth

324、 will likely continue at a moderate pace,supported by the services sector and easing inflation,industrial development is expected to remain sluggish.The forecasts for calendars 2025 and 2024 presented here for GDP and fixed investments are based on a report from S&P Global dated October 15,2024.8.1.

325、2 Siemens Group We are basing our outlook for fiscal 2025 on the above-mentioned expectations and assumptions regarding the overall economic situation and also on the specific market conditions we expect for our respective industrial businesses,as described in chapter 3 Segment information.In partic

326、ular,we anticipate moderate macroeconomic growth in fiscal 2025,due in part to continuing geopolitical uncertainty including trade conflicts,and also to ongoing challenges for the manufacturing sector due to overcapacity and weak consumer demand.At the same time,infrastructure markets,particularly i

327、n electrification and mobility,are expected to remain strong.Furthermore,we assume that geopolitical tensions do not further increase.We are exposed to currency translation effects,mainly involving the U.S.dollar,the British pound and currencies of emerging markets,particularly the Chinese yuan.Siem

328、ens is still a net exporter from the Eurozone to the rest of the world,so a weak euro is principally favorable for our business and a strong euro is principally unfavorable.While we expect volatility in global currency markets to continue in fiscal 2025,we have improved our natural hedge on a global

329、 basis through geographic distribution of our production facilities in the past.In addition to the natural hedging strategy,we also hedge currency risk in our export business using derivative financial instruments.We expect these steps to help us limit effects on income related to currency in fiscal

330、 2025.In this outlook,we assume that currency translation effects in fiscal 2025 do not significantly influence nominal volume growth rates for our businesses.This outlook excludes burdens from legal and regulatory matters.Segments Digital Industries expects for fiscal 2025 a change in comparable re

331、venue,net of currency translation and portfolio effects,in a range of(6)%to 1%and a profit margin of 15%to 19%.Smart Infrastructure expects for fiscal 2025 comparable revenue growth of 6%to 9%and a profit margin of 17%to 18%.Combined Management Report 21 Mobility expects for fiscal 2025 comparable r

332、evenue growth of 8%to 10%and a profit margin of 8%to 10%.Siemens Healthineers expects to achieve comparable revenue growth of 5%to 6%in fiscal 2025,and to contribute solidly to the profit and profit margin of our Industrial Business.SFS anticipates earnings before taxes in fiscal 2025 on the level o

333、f fiscal 2024.Return on equity(ROE)(after tax)is expected to be in the target range of 15%to 20%.Revenue growth For the Siemens Group we expect comparable revenue growth in the range of 3%to 7%.Furthermore,we anticipate that orders in fiscal 2025 will exceed revenue for a book-to-bill ratio above 1.As of September 30,2024,our order backlog totaled 113 billion,and we expect conversion from the back