Siemens 2007 Annual Report Download - page 116

116 Management’s discussion and analysis
Due to the increased importance of the Company’s strategic investments
accounted for under the equity method, in particular the creation of NSN (see
“Notes to Consolidated Financial Statements” for further information), Siemens
has created a new reportable segment Strategic Equity Investments (SEI) begin-
ning in fi scal 2007. SEI represents an operating segment, having its own manage-
ment that reports the results of the segment to the Managing Board. In addition to
the investments in Fujitsu Siemens Computers (Holding) BV (FSC) and BSH Bosch
und Siemens Hausgeräte GmbH (BSH), the Siemens investment in NSN is also
reported in SEI beginning in the third quarter of fi scal 2007. The investments in
FSC and BSH were included within Other Operations until September 30, 2006.
Prior-year information was reclassifi ed for comparability purposes for these two
investments.
A new Group called Siemens IT Solutions and Services (SIS) was created effec-
tive April 1, 2007. SIS consists primarily of the activities of the former segment
Siemens Business Services that were bundled with other information technology
activities. Prior-year information was reclassifi ed for comparability purposes.
In fi scal 2007, Siemens also signed an agreement to sell its entire SV activities
to Continental AG. The historical results of the SV business are reported as discon-
tinued operations. Beginning in the fourth quarter of fi scal 2007, SV ceased to
represent a reportable segment. Current and prior-year segment disclosures
therefore exclude the applicable information included in the Company’s fi nancial
statement presentation.
Another component of our Company is made up of two Groups involved in non-
manufacturing activities such as fi nancing, leasing, investing and real estate. We
call this component of our business Financing and Real Estate. We evaluate the
profi tability of our Financing and Real Estate Groups using income before income
taxes.