Table:
|  |  | Fiscal year |  |
| --- | --- | --- | --- |
| (in millions of €) | 2019 | 2018 | % Change |
| Revenue | 22,104 | 28,185 | (22) % |
| Cost of Sales | (15,825) | (21,074) | 25 % |
| Gross profit | 6,279 | 7,111 | (12) % |
| as percentage of revenue | 28 % | 25 % |  |
| Research and development expenses | (2,362) | (2,788) | 15 % |
| Selling and general administrative expenses | (3,979) | (3,767) | (6) % |
| Other operating income (expenses), net | 9,469 | 1 | n / a |
| Financial income, net thereof Income from investments, net 3,754 (prior year 5,381) | 3,188 | 4,643 | (31) % |
| Income from business activity | 12,596 | 5,199 | 142 % |
| Income taxes | (1,377) | (653) | (111) % |
| Net income | 11,219 | 4,547 | 147 % |
| Profit carried forward | 170 | 134 | 27 % |
| Allocation to other retained earnings | (6,005) | (1,451) | > (200) % |
| Unappropriated net income | 5,384 | 3,230 | 67 % |
Paragraphs:
A.9.1 Results of operations
Statement of Income of Siemens AG in accordance with German Commercial Code (condensed)
Beginning of August 2018, Siemens AG carved out its mobility business to Siemens Mobility GmbH by way of singular succession. The decreases in revenue, cost of sales, gross profit and research and development (R & D) expenses were mainly driven by this carve-out.
On a geographical basis, 75 % of revenue was generated in the Europe, C. I. S., Africa, Middle East region, 18 % in the Asia, Australia region and 7 % in the Americas region. Exports from Germany accounted for 62 % of overall revenue. In fiscal 2019, orders for Siemens AG amounted to € 21.6 billion. Within Siemens AG, the development of revenue depends strongly on the completion of contracts, primarily in connection with large orders.
The R & D intensity (R & D as a percentage of revenue) increased by 0.8 percentage points year-over-year. The research and development activities of Siemens AG are fundamentally the same as for its fields of business activities within the Siemens Group, respectively. On an average basis, we employed 9,000 people in R & D in fiscal 2019.
The decrease in Financial income, net was primarily attributable to lower income from investments, net. The main factor for this decrease was a significant income from the profit transfer agreement with Siemens Beteiligungen Inland GmbH, Germany, in
fiscal 2018.
Question:
What is the gross profit margin in 2019?
Answer: 6279 / 22104 = 28.41