APC 2014 Annual Report Download - page 179

BUSINESS REVIEW
REVIEW OF THE CONSOLIDATED FINANCIAL STATEMENTS
Operating income (EBIT)
Operating income (EBIT) decreased from EUR3,039million for the decrease is explained by both the EBITA decrease and by an
year ended December31, 2013 (restated for the effect of increase of the amortization of purchase accounting intangibles by
discontinued operations and change in consolidation method EUR44million linked to Invensys acquisition (EUR259million in
disclosed in note 1 of the consolidated financial statements) to 2014 versus EUR215million in 2013).
2,896million for the year ended December31, 2014. This 4.7%
Net financial income/loss
Net financial loss amounted to EUR467million for the year ended financial debt from EUR325million for year ended December31,
December31, 2014, compared to EUR484million for the year 2013 to EUR312million for year ended December31, 2014 thanks
ended December31, 2013 (restated for the effect of discontinued to a lower average interest rate. The other financial incomes and
operations and change in consolidation method disclosed in note 1 costs are stable from a net expense of EUR159million for year
of the consolidated financial statements). The decrease of the net ended December31, 2013 to a net expense of EUR155million for
financial loss is mainly explained by the decrease of the cost of net year ended December31, 2014.
Tax
The effective tax rate was 22.7% for the year ended December31, December31, 2014. The tax expense includes in 2014 a deferred
2014, decreasing compared to 25.5% for the year ended tax profit from the recognition of deferred tax assets on Invensys
December31, 2013 (restated for the effect of discontinued US tax losses (previously unrecognized) that was made possible
operations and change in consolidation method disclosed in note 1 after the agreement on sales of Invensys assets negotiated with
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of the consolidated financial statements).. The corresponding tax Invensys Trustee in February 2014, which allowed the tax
expense decreased from EUR651million for the year ended integration of Invensys US operations with Schneider Electric US
December31, 2013 to EUR551million for the year ended operations.
Discontinued operations
The net effect of discontinued activities totaled EUR169million for October1, 2014, as well as the corresponding gain on sale,
the year ended December 31, 2014, including profit over compared to EUR61million for the year ended December31,
six-months from the Appliance activity of Invensys, sold in June 2013, including yearly profit from CST business only.
2014, and over nine-months from CST business, sold on
Share of profit/(losses) of associates
The share of profit of associates decreased from EUR20million for the first quarter income of Electroshield – TM Samara (fully
the year ended December31, 2013 to EUR14million for the year consolidated from April1, 2013).
ended December31, 2014 mainly because 2013 was still including
Non-controlling interests
Minority interests in net income for the year ended December31, income attributable, in large part, to the minority interests of certain
2014 totaled EUR120million, compared to EUR97million for the Chinese companies.
year ended December31, 2013. This represented the share in net
Profit for the period
Profit for the period attributable to the equity holders of our parent company amounted to EUR1,941million for the year ended
December31, 2014, that is a 2.8% increase over the EUR1,888million profit for the year ended December31, 2013.
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2014 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC