Siemens 2007 Annual Report Download - page 117

Management’s discussion and analysis 117
Management’s discussion and analysis
In breaking out the Operations and Financing and Real Estate components and
in order to show more clearly our external performance, we exclude the business
they conduct with each other and with our Corporate Treasury, which provides
cash management services for our Groups and corporate fi nance activities. These
internal transactions are therefore included into a component called Elimina-
tions, reclassifi cations and Corporate Treasury. This component is the difference
between the results for Operations and Financing and Real Estate and the results
of Siemens. For additional information, see “Notes to Consolidated Financial
Statements.”
Siemens
Consists of the following three components which include the nine operating Groups and the two
Groups in Financing and Real Estate
Operations*
■ Automation and Drives (A&D)
■ Industrial Solutions and Services (I&S)
■ Siemens Building Technologies (SBT)
■ Osram
■ Transportation Systems (TS)
■ Power Generation (PG)
■ Power Transmission and Distribution (PTD)
■ Medical Solutions (Med)
■ Siemens IT Solutions and Services (SIS)
Strategic Equity Investments (SEI)
Other Operations; Corporate items,
pensions and eliminations
Financing and Real Estate
■ Siemens Financial Services (SFS)
■ Siemens Real Estate (SRE)
Eliminations,
reclassifications and
Corporate Treasury
* In fiscal 2006, Siemens announced portfolio changes that resul-
ted in dissolving Communications (Com) as a Group and reporta-
ble segment.
A new segment called Strategic Equity Investments (SEI) was
created as of October 1, 2006 and includes certain strategic
investments accounted for using the equity method. Beginning
in the third quarter of fiscal 2007, the Siemens investment in
Nokia Siemens Networks (NSN) is also reported in SEI.
SIS was created effective April 1, 2007 and consists primarily
of the activities of the former segment Siemens Business Services
(SBS) that were bundled with other information technology
(IT) activities.
In fiscal 2007, Siemens signed an agreement to sell its entire
Siemens VDO Automotive (SV) activities to Continental AG.
The SV business is reported as discontinued operations.
Beginning in the fourth quarter of fiscal 2007, SV ceased to
represent a reportable segment.