Siemens 2005 Annual Report Download - page 105

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105
Financing and Real Estate
Siemens Financial Services (SFS)
Income before income taxes at SFS in fiscal 2005 was €319 million, up from €250 million a
year earlier. The increase year-over-year was due primarily to a special dividend related to an
investment, a gain from the sale of an investment, and a gain on a 51% stake in the real estate
funds management business of Siemens Kapitalanlagegesellschaft mbH (SKAG), partially offset
by an increase in reserves on accounts receivables. The increase in assets at SFS compared to the
prior year stems primarily from the expansion of the Equipment and Sales Financing business
in Europe and the Americas. In fiscal 2005, this expansion included the acquisition of Broadcastle
plc, a U.K. financial services firm with activities in the U.K. healthcare sector.
Siemens Real Estate (SRE)
Income before income taxes at SRE was €144 million compared to €106 million a year earlier,
which included termination costs associated with a major development project in Germany. Sales
rose 3%, to €1.621 billion, primarily due to an increase in international business. Results at SRE
were adjusted to reflect a small effect related to discontinued operations.
Eliminations, reclassifications and Corporate Treasury
Income before taxes from eliminations, reclassifications and Corporate Treasury was €298 mil-
lion compared to €224 million a year earlier. The difference was due mainly to higher income
from interest rate hedging activities not qualifying for hedge accounting.
Management’s discussion and analysis
Consolidated Financial Statements Notes to Consolidated Financial Statements
Year ended September 30,
(€ in millions) 2005 2004 % Change
Income before income taxes 319 250 28%
Total assets 10,148 9,055 12%
Year ended September 30,
(€ in millions) 2005 2004 % Change
Income before income taxes 144 106 36%
Sales 1,621 1,578 3%
Total assets 3,496 3,455 1%