In particular, the Industry and Energy Sectors had an outstanding year. At the Industry Sector, revenue grew by nine percent to €32.9 billion and new orders climbed 24 percent year-over-year to €37.6 billion. The ICx order from Deutsche Bahn, worth €3.7 billion and the biggest order in the company's history, contributed a large share of the order volume. The Industry Automation and Drive Technologies Divisions also posted double-digit growth rates in both revenue and orders. Sector profit rose 36 percent to €3.6 billion.
At the Energy Sector, revenue grew eight percent to €27.6 billion and new orders climbed 15 percent to €34.8 billion. A highlight of the year was winning the Ras Az Zawr power plant project in Saudi Arabia, a contract worth over one billion U.S. dollars. The Sector's high profit of €4.1 billion – up nearly one-quarter year-over-year – was attributable in particular to the strong performance by the Fossil Power Generation Division. Profit was burdened by impairment charges resulting from an assessment of the solar power business. The Renewable Energy Division, among others, also made a significant contribution to order growth. For example, Siemens received its first order for an offshore wind farm in China this year – marking the company's entry into the world's biggest wind power market. In Germany, the first commercial offshore wind farm was inaugurated. A major stimulus to business could also come from Siemens' domestic market in the future: The company is ideally positioned to accompany and serve Germany's new energy policy.
The picture for the Healthcare Sector was mixed. A strong development in the imaging business contrasted with ongoing operative challenges in the diagnostics business as well as in the pioneering field of particle therapy. Revenue and new orders were slightly above the prior year's level, at €12.5 billion and €13.1 billion, respectively. Sector profit doubled to €1.3 billion. In the previous year, impairments in the Diagnostics Division had burdened profit.
Environmental Portfolio and emerging countries drive growth
Revenue with ecofriendly products and solutions showed gratifying growth. Revenue generated by the Environmental Portfolio contributed around €30 billion to the company total. Siemens aims at exceeding the €40-billion revenue mark with green technologies by the end of fiscal 2014. Products and solutions that contribute to the abatement of greenhouse gases as well as environmental technologies for clean air and water are included in the Portfolio.
The emerging countries again provided major impulses for growth. New orders here in fiscal 2011 climbed 18 percent year-over-year to €28.2 billion. Revenue organically rose 12 percent to €24.1 billion. Emerging countries currently contribute one-third of the company's total revenue. The workforce in these countries also grew substantially from 85,000 in fiscal 2010 to 98,000 at present: This corresponds to more than one-quarter of the company total. Siemens has been firmly anchored in these markets for decades and offers products that are tailored to meet the specific needs of local markets.
Clear dividend policy
The company reached the targets it had set for fiscal 2011. On this basis, the Supervisory Board and the Managing Board will propose a dividend of €3.00, compared to €2.70 in the prior year, for approval by the Annual Shareholders' Meeting in January 2012. This would be an increase of 11 percent and correspond to a payout ratio of 41 percent. Siemens thus remains on a clear course with its dividend policy and is holding to its announced plan to maintain a dividend payout ratio between 30 and 50 percent.
New Infrastructure & Cities Sector – Plans for Osram unchanged
With the start of the new fiscal year on October 1, 2011, the new Infrastructure & Cities Sector also commenced its work. Siemens had identified the worldwide trend of urbanization at a very early stage, and the new Sector bundles Siemens' competencies and business activities in this area to offer cities solutions for mobility, environmental protection and energy efficiency. Siemens relies on direct dialogues with urban decision-makers and will now offer comprehensive urban solutions from a single hand. This is an important criterion for many decision-makers.
Preparations for the listing of Osram AG at a later date are continuing unchanged. Siemens is closely watching the capital market environment in this respect.
For fiscal 2012 we expect moderate organic revenue growth compared to fiscal 2011, and orders again exceeding revenues for a book-to-bill well above 1. We anticipate continued strong earnings performances in our businesses, despite ongoing pricing pressure and higher operating expenses. We set our goal for fiscal 2012 income from continuing operations based on the high level we achieved in the prior year, excluding the net positive effect of €1.0 billion related to Areva that lifted income to €7.0 billion in fiscal 2011.
Our expectations for income include anticipated profit impacts related to repositioning activities at NSN and in the Healthcare Sector and higher pension expenses. This outlook excludes significant portfolio effects and impacts related to legal and regulatory matters. It is also conditional on continued revenue growth, particularly for businesses that are sensitive to short-term changes in the economic environment.