Siemens 2007 Annual Report Download - page 139

Management’s discussion and analysis 139
Management’s discussion and analysis
Based on continuing operations, Siemens created EVA of €1.848 billion in fi scal
2007 compared to €1.229 billion a year earlier. Including discontinued operations,
EVA was up to €2.136 billion in fi scal 2007 compared to €1.219 billion in fi scal 2006.
Economic Value Added (EVA) calculation
For the fi scal years ended September 30, 2007 and 2006
Siemens
Eliminations,
reclassifi cations and
Corporate Treasury Operations
Financing and
Real Estate
(€ in millions) 2007 2006 2007 2006 2007 2006 2007 2006
Income from continuing operations 3,909 2,642 117 (14) 3,365 2,331 427 325
Income Taxes(1) 1,192 776 36 (4) 1,026 684 130 96
Income from continuing operations
before income taxes 5,101 3,418 153 (18) 4,391 3,015 557 421
Other interest income (expense) of Operations, net 497 325 – – 497 325 – –
Taxes and fi nancial adjustments (1,609) (952) (46) 6 (1,427) (866) (136) (92)
Net operating profi t from continuing
operations after taxes 3,989 2,791 107 (12) 3,461 2,474 421 329
Sept. 30,
2007
Sept. 30,
2006
Sept. 30,
2007
Sept. 30,
2006
Sept. 30,
2007
Sept. 30,
2006
Sept. 30,
2007
Sept. 30,
2006
Total assets 91,555 87,528 (7,648) (5,793) 87,658 80,019 11,545 13,302
Other asset related and miscellaneous
reconciling items (see table segment information) – – – – (62,432) (67,596) – –
Financial adjustments – – – – 537 617 – –
Pension adjustment and average calculation(2) – – – – (1,057) 4,576 – –
Liabilities(3) – – – – – – (9,584) (11,251)
Average net operating assets for Operations
(continuing operations) / allocated equity for
Financing and Real Estate – – – – 24,706 17,616 1,961 2,051
2007 2006 2007 2006 2007 2006 2007 2006
Net operating profi t from continuing
operations after taxes 3,989 2,791 107 (12) 3,461 2,474 421 329
Capital charge(4) (2,141) (1,562) (12) (13) (1,972) (1,384) (157) (165)
EVA from continuing operations 1,848 1,229 95 (25) 1,489 1,090 264 164
EVA from discontinued operations 288 (10) – – 290 1 (2) (11)
EVA from continuing and discontinued operations 2,136 1,219 95 (25) 1,779 1,091 262 153
(1) The income taxes of Eliminations, reclassifi cations and Corporate Treasury, Operations, and Financing and Real Estate are based on the consolidated effective
corporate tax rate applied to income before income taxes.
(2) The term “Net operating assets” is the same as Net capital employed except the effects of fi nancial adjustments and the fact that Average net operating assets are
calculated on a monthly basis. The average net operating assets of discontinued operations have been eliminated for both fi scal years.
(3) As a result of allocated equity, liabilities are also partly allocated.
(4) Capital charge for Eliminations, reclassifi cations and Corporate Treasury is risk-determined.