Siemens 2010 Annual Report Download - page 296

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
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 – Segment Information
The Company is divided into Sectors being Industry, Energy
and Healthcare, a segment for Equity Investments and two
segments referred to as Cross-Sector Businesses, composed of
Siemens IT Solutions and Services and Siemens Financial
Services (SFS).
Description of reportable segments
Sectors
The three Sectors comprise manufacturing, industrial and
commercial goods, solutions and services in areas more or less
related to Siemens’ origins in the electrical business field.
Industry
The Industry Sector offers a complete spectrum of products,
services and solutions for the efficient use of resources and
energy and improvements of productivity in industry and infra-
structure. Its integrated technologies and holistic solutions
address primarily industrial customers, such as process and
manufacturing industries, and infrastructure customers, espe-
cially in the areas of transport, buildings and utilities.
Energy
The Energy Sector offers a wide spectrum of products, services
and solutions for the generation, transmission and distribution
of power, and the extraction, conversion and transport of oil
and gas. It primarily addresses the needs of energy providers,
but also serves industrial companies, particularly in the oil and
gas industry.
Healthcare
The Healthcare Sector offers products and complete solutions,
services and consulting related to the healthcare industry and
serves its customers as a fully integrated diagnostics provider.
Healthcare maintains a comprehensive portfolio of medical
solutions and is present in substantially the complete value-
added chain ranging from medical imaging and laboratory
diagnostics to clinical IT.
Equity Investments
Equity Investments is a reportable segment with its own man-
agement. Equity Investments contains investments accounted
for under the equity method or at cost and current available-
for-sale financial assets, which are not allocated to a Sector,
Cross-Sector Business, SRE, Pensions or Treasury. As of Sep-
tember ,  and , NSN, BSH and EN, see Note  are,
among others, reported in Equity Investments.
Cross-Sector Businesses
Siemens IT Solutions and Services
Siemens IT Solutions and Services provides information and
communications services primarily to customers in the com-
mercial / industrial sector, in the energy, healthcare and service
industries as well as to the public sector. Siemens IT Solutions
and Services designs, builds and operates both discrete and
large-scale information and communications systems.
Siemens Financial Services (SFS)
Siemens Financial Services provides a variety of financial ser-
vices and products both to third parties and to other Siemens
entities and their customers.
Reconciliation to Consolidated Financial Statements
Reconciliation to Consolidated Financial Statements contains
businesses and items not directly related to Siemens’ report-
able segments:
Centrally managed portfolio activities
Beginning with the first quarter of fiscal , Segment Infor-
mation includes a line item for centrally managed activities
generally intended for divestment or closure, which at present
primarily includes the Electronics Assembly Systems business
and activities remaining from the divestment of the former
Communications (Com) business. Results for the new line
item, Centrally managed portfolio activities, as well as for Cor-
porate items (see below) are stated on a comparable basis.
Siemens Real Estate (SRE)
Siemens Real Estate owns and manages a substantial part of
Siemens’ real estate portfolio and offers a range of services
encompassing real estate development, real estate disposal
and asset management, as well as lease and services manage-
ment. SRE is in the process of bundling additional corporate
real estate. In fiscal , assets with a carrying amount of
€ were transferred to SRE.
Corporate items and pensions
Corporate items and pensions includes corporate charges such
as personnel costs for corporate headquarters, corporate proj-
ects and non-operating investments or results of corporate-
related derivative activities and, since fiscal , costs for
carve out activities managed by corporate, which are charged
to the respective segment when the disposal gain or loss is
realized. Pensions includes the Company ’s pension related in-
come (expense) not allocated to the segments, SRE or Cen-
trally managed portfolio activities.