Annual Financial Statements As of September 30, 2019
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Siemens Healthineers AG Annual financial statements as of September 30, 2019 siemens-healthineers.com Table of content A. Annual financial B. Additional statements Information S. 4 S. 21 A.1 Income Statement B.1 Responsibility Statement S. 5 S. 22 A.2 Balance Sheet B.2 Independent Auditor’s Report S. 6 S. 26 A.3 Notes B.3 Further Information Combined Management Report The Management Report of Siemens Healthineers AG has been combined with the Management Report of the Siemens Healthineers Group in accordance with Section 315 para. 5 together with Section 298 para. 2 of the German Commercial Code (Handelsgesetzbuch) and is published in the 2019 Annual Report of the Siemens Healthineers Group. The Annual Financial Statements and the Combined Management Report of Siemens Healthineers AG for the fiscal year 2019 are filed with the operator of the German Federal Gazette and published in the German Federal Gazette. The Annual Financial Statements of Siemens Healthineers AG as well as the Annual Report for the fiscal year 2019 are also available for download on the Internet at: www.corporate.siemens-healthineers.com/investor-relations/presentations-financial-publications A. Annual financial statements S. 4 A.1 Income Statement S. 5 A.2 Balance Sheet S. 6 A.3 Notes 03 Siemens Healthineers AG Annual financial statements 2019 Annual financial statements – Income Statement A.1 Income Statement Fiscal year Short fiscal year (in millions of €) Notes 2019 2018 Revenue 1 14 7 Cost of Sales −13 −7 Gross profit 1 0 General administrative expenses −23 −9 Other operating income 2 6 1 Other operating expenses 0 0 Income from operations −16 −8 Income from investments 3 1,415 472 Interest income 4 0 0 Interest expenses 4 −9 −5 Other financial income (expenses), net 5 −1 −1 Income from business activity 1,389 459 Income taxes 6 −356 −126 Income after taxes / Net income 1,034 333 Appropriation of net income Net income 1,034 333 Profit carried forward 24 ‐ Transfer from capital reserves ‐ 390 Unappropriated net income 1,057 723 04 Siemens Healthineers AG Annual financial statements 2019 Annual financial statements – Balance Sheet A.2 Balance Sheet (in millions of €) Notes Sept 30, 2019 Sept 30, 2018 Assets Non-current assets 8 16,185 14,399 Property, plant and equipment 0 ‐ Financial assets 16,185 14,399 Current assets 1,529 566 Receivables and other assets 9 1,524 566 Receivables from affiliated companies 1,428 479 Other receivables and other assets 96 86 Cash and cash equivalents 4 0 Prepaid expenses 10 33 0 Total assets 17,747 14,965 Shareholders´ equity and liabilities Shareholders´ equity 12 12,811 12,493 Subscribed capital 1,000 1,000 Treasury shares −1 0 Issued capital 999 1,000 Capital reserve 10,754 10,770 Unappropriated net income 1,057 723 Provisions 162 54 Provision for pensions and similar commitments 13 19 16 Other provisions 14 143 38 Liabilities 15 4,774 2,418 Trade payables 0 0 Liabilities to affiliated companies 4,759 2,414 Other liabilities 15 4 Total shareholders´ equity and liabilities 17,747 14,965 05 Siemens Healthineers AG Annual financial statements 2019 Annual financial statements – Notes A.3 Notes A.3.1 General Disclosures investment. Distributions from other entities are recognized as repayment of capital or a reduction in acquisition costs to the extent to which distributions demonstrably relate to reserves aris- Siemens Healthineers AG has its registered office in Munich, ing prior to the acquisition of the investment and therefore Germany, where it is registered under entry number HRB 237558 included in the acquisition costs, or the distributions involve with Munich Local Court. previously executed capital increases or additional capital contri- butions. Distributions of liquidity by partnerships are generally The Company was founded in December 2017 and serves as the treated as repayment of capital. Impairment losses are recognized management holding company for the Siemens Healthineers if the decline in value is presumed to be other than temporary. Group providing central administrative services. The Company’s This applies when objective evidence, particularly events or shares were admitted for trading on the Frankfurt Stock Exchange changes in circumstances, indicate a significant or other than on March 16, 2018. As of September 30, 2019, the Siemens temporary decline in value. Group held an interest of approximately 85% of Siemens Healthineers AG. The Company exercises the option to recognize debt discounts as prepaid expenses. The previous year was a short fiscal year covering the period from the founding of the Company on December 1, 2017, to Pensions and similar commitments: Siemens Healthineers AG mea- September 30, 2018. This limits the comparability of the previous sures its pension obligations using the settlement amount calcu- year’s figures in the Income Statement. lated with the actuarial projected unit credit method on the basis of biometric probabilities. Entitlements resulting from plans based The Annual Financial Statements as of September 30, 2019, were on asset returns are generally measured at the fair value of the prepared in accordance with Section 264 para. 1 of the German underlying assets at the reporting date. If the performance of the Commercial Code (Handelsgesetzbuch, HGB) in conjunction with underlying assets is lower than a guaranteed return, the pension Section 267 para. 3 and Section 264d of that Code, on the basis obligation is measured by projecting forward the contributions at of the German Commercial Code’s provisions for the financial re- the guaranteed fixed return and discounting back to a present porting of large capital corporations, as well as under the terms of value. The discount rate used for discounting pension obligations the German Stock Corporation Act (Aktiengesetz, AktG). Amounts corresponds to the average market interest rate for instruments are generally presented in millions of euros (€ million). Because with an assumed remaining maturity of 15 years as published by of rounding, it is possible that some figures may not add up Deutsche Bundesbank. In the 2019 fiscal year, the mortality rates precisely to the presented totals. are based on Siemens’ own mortality tables (Siemens Bio 2017) for the first time, instead of the Siemens-specific tables (Richt- tafeln) with a mortality trend based on the Heubeck mortality The Income Statement was prepared using the cost of sales tables RT 2005 G. This change did not have any material effect in method. fiscal year 2019. A.3.2 Accounting policies and methods Other provisions are recognized in an appropriate and sufficient amount to cover individual obligations for all identifiable risks Proceeds from management services for affiliated companies are relating to liabilities of uncertain timing and amount, taking ac- recognized as revenue. count of price and cost increases expected to arise in the future. Significant provisions with a remaining term of more than one year are discounted using a discount rate which corresponds to Financial assets acquired by way of contributions in kind from the average market interest rate appropriate for the remaining shareholders are generally recognized in the amount issued ac- term of the obligations, as calculated and published by Deutsche cording to the resolution to increase the share capital, up to a Bundesbank. maximum of their fair value at the time of the contribution. Con- tributions in kind to other entities are carried as acquisition costs either at their carrying amount or at the fair value of the asset Distributions from other entities are presented as income from contributed, up to a maximum of the fair value, on a case by case investments if they do not demonstrably relate to reserves arising basis, exercising the option provided under the principles govern- prior to the acquisition of the investment or a repayment of pre- ing exchanges of assets. Grants made to affiliated companies vious capital increases or additional capital contributions. without consideration are capitalized as acquisition costs only when the grant increases the intrinsic value of the equity 06 Siemens Healthineers AG Annual financial statements 2019 Annual financial statements – Notes Foreign currency translation: Receivables, other assets, cash and A.3.3 Notes to the Income Statement cash equivalents, provisions and liabilities as well as commit- ments and contingencies denominated in foreign currency are generally translated applying the mean spot exchange rate on the Note 1 Revenue balance sheet date. Revenue results solely from providing management services to af- filiated companies, in the amount of €14 million (previous year: The option of applying hedge accounting is exercised on a case by case basis. All derivative financial instruments in these Annual €7 million). Financial Statements were used for hedging purposes and com- bined with the hedged items into hedges. Hedges are recognized Revenue is generated entirely from affiliated companies in using the net hedge presentation method (Einfrierungsmethode). Germany. Forward exchange contracts are generally designated as hedges as a whole. In this case, when hedge accounting is applied, the changes in the value of the hedged items and of the spot compo- Note 2 Other operating income nents of the forward exchange contracts are offset. Only a net negative amount from the ineffective portion of the change in Other operating income substantially comprised a non-recurring market value is recognized as a provision. The unrealized gains reimbursement by Siemens Aktiengesellschaft, Berlin and and losses from the effective portion cancel each other out and Munich, (“Siemens AG”) amounting to €5 million. This item also are not recognized either in the Balance Sheet or in the Income included other reimbursements by Siemens AG for the cost of Statement. The forward components at inception of forward share-based payments awarded to employees of Siemens exchange contracts are recognized pro rata temporis over the Healthineers AG as part of the IPO Incentive in the amount of term of the forward as an adjustment of interest expenses, if they €1 million (previous year: €1 million).