Siemens 2008 Annual Report Download - page 167

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Management’s discussion and analysis 71
well as a call center software company to complement the new EN business. SEN was formerly reported within
discontinued operations. Assets held for disposal include FSC.
Prot from Equity Investments in scal 2008 was a positive €95 million compared to a negative €96 million in
scal 2007. The major factor in this improvement was NSN, which reported improved operating results and also
substantially reduced its restructuring charges and integration costs year-over year. In scal 2008 NSN incurred
restructuring charges and integration costs of €480 million, down from €991 million in scal 2007. As a result,
our equity investment loss related to NSN decreased to €119 million in scal 2008 from €429 million a year ear-
lier. FSC which posted positive equity income in scal 2007, turned negative in scal 2008.
Cross-Sector Businesses
Siemens IT Solutions and Services
Prot at Siemens IT Solutions and Services declined sharply year-over-year to €144 million from €252 million
a year earlier. This was due mainly to charges at major projects in the U.K., which had a net negative effect on
prot of €76 million. Orders for scal 2008 were up 2%, at €5.272 billion, while revenue was down 1% year-over-
year, at €5.325 billion.
Siemens Financial Services (SFS)
Income before income taxes (IBIT) at SFS was €286 million in scal 2008 compared to €329 million a year earlier.
IBIT for both scal years beneted from special dividends resulting from divestment gains by a company in
which SFS holds an equity position. The dividends received in scal 2007 were higher. IBIT of SFS’ equity and
Year ended
September 30, % Change therein
(€ in millions) 2008 2007 Actual Adjusted* Currency Portfolio
Prot 144 252 (43)%
Prot margin 2.7% 4.7%
New orders 5,272 5,156 2% 4% (3)% 1%
Total revenue 5,325 5,360 (1)% 1% (3)% 1%
External revenue 3,845 3,988 (4)%
Therein:
Europe, C.I.S.**, Africa 3,322 3,415 (3)%
Therein Germany 1,451 1,498 (3)%
Americas 430 472 (9)%
Asia, Australia, Middle East 93 101 (8)%
* Excluding currency translation and portfolio effects. ** Commonwealth of Independent States.
Year ended
September 30,
(€ in millions) 2008 2007 % Change
Income before income taxes 286 329 (13)%
Total assets 11,328 8,912 27%