Siemens 2007 Annual Report Download - page 123

Management’s discussion and analysis 123
Management’s discussion and analysis
year earlier. Contribution to net income from SV activities was a negative €550
million compared to a positive €410 million in fi scal 2006. This decrease was due
to an approximate €1.1 billion tax expense as well as interest expense and closing
costs related to the carve-out. Full-year results at Com-related activities contrib-
uted positively in both the current and prior year, with €765 million and €357 mil-
lion, respectively. The current-year result was higher primarily due to the €1.6 bil-
lion NSN non-cash gain. This gain was partly offset by €567 million in impair-
ments at the enterprise networking business, a €201 million fi ne imposed on us in
Germany, of which €200 million was tax deductible for tax purposes, and €104
million in other costs related to compliance matters. The remainder of the change
year-over-year is due to an operating loss in the current year compared to operat-
ing profi t at Com a year earlier. While the profi table carrier activities were
included for all of fi scal 2006, they were transferred out of discontinued opera-
tions and into NSN midway through fi scal 2007. Effects related to BenQ reduced
net income by €86 million and €64 million, respectively, in fi scal 2007 and fi scal
2006. For additional information with respect to discontinued operations, see
“Notes to Consolidated Financial Statements.”
Net income for Siemens in fi scal 2007 was €4.038 billion, a 21% increase com-
pared to €3.345 billion in the same period a year earlier. Net income attributable
to Shareholders of Siemens AG was €3.806 billion, up 21% from €3.135 billion in
fi scal 2006.