Siemens 2007 Annual Report Download - page 308

308 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
36 Segment information
As of September 30, 2007, the Company has twelve reportable segments referred
to as Groups reported among the components used in Siemens’ fi nancial state-
ment presentation as described in Note 1. The Groups are organized based on the
nature of products and services provided.
Within the Operations component, Siemens has nine Groups which involve
manufacturing, industrial and commercial goods, solutions and services in areas
more or less related to Siemens’ origins in the electrical business. Also included in
Operations is SEI (see discussion below), as well as operating activities not associ-
ated with a Group, the latter of which are reported under Other Operations, as well
as other reconciling items discussed in Reconciliation to fi nancial statements below.
In fi scal 2006, Siemens announced portfolio changes that resulted in dissolv-
ing Com as a Group and reportable segment. As discussed in Note 4, the primary
business components of the former operating segment Com were either already
disposed of (carrier networks and MD) or still held for disposal (enterprise net-
works) as of September 30, 2007. Beginning October 1, 2006, A&D assumed
responsibility for Com’s Wireless Modules business. Except for Wireless Modules
and other businesses including the former division Siemens Home and Offi ce
Communication Devices that was reclassifi ed from Com to Other Operations in the
third quarter of fi scal 2006, the historical results of the former operating segment
Com are presented as discontinued operations. Current and prior-year segment
disclosures exclude the applicable information included in the Company’s fi nan-
cial statement presentation.
Due to the increased importance of the Company’s strategic investments
accounted for under the equity method, in particular the creation of NSN (see Note
4 for further information), Siemens has created a new reportable segment Strate-
gic Equity Investments (SEI) beginning in fi scal 2007. SEI represents an operating
segment, having its own management 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 Opera-
tions until September 30, 2006. Prior-year information was reclassifi ed for compa-
rability purposes for these two investments. In fi scal 2007, SEI results of €(161)
includes €(429) related to the investment in NSN.
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
SBS 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 (see Note 4 for further information). The historical results of the
SV business are reported as discontinued 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.