Siemens 2014 Annual Report Download - page 190

108 A. To our Shareholders 131 B. Corporate Governance 171 C. Combined Management Report
172 C. Business and economic environment
187 C. Financial performance system
193 C. Results of operations
205 C. Financial position
210 C. Net assets position

C.. Additional information
for financial performance measures
C... RETURN ON EQUITY (ROE) (AFTER TAX)
The following table reports the calculation of ROE (after tax) of
SFS as defined under One Siemens.
Year ended September ,
(in millions of €)  
Calculation of income taxes of SFS
Profit of SFS (Income before income taxes, IBIT) 465 409
Less: Income of SFS from investments accounted for using the equity method, net
(66) (85)
Less: Tax-free income components and others  (41) (26)
Tax basis 358 298
Tax rate (flat) 30% 30%
Calculated income taxes of SFS 107 89
Profit after tax of SFS
Profit of SFS (IBIT) 465 409
Less: Calculated income taxes of SFS (107) (89)
Profit after tax of SFS 357 320
ROE (after tax) of SFS
(I) Profit after tax of SFS 357 320
(II) Average allocated equity of SFS  1,976 1,874
(I) / (II) ROE (after tax) of SFS 18.1% 17.1%
1 For information on Income (loss) of SFS from invest-
ments accounted for using the equity method net,
see C.. RECONCILIATION TO ADJUSTED EBITDA.
2 Tax-free income components include forms of financing
which are generally exempted from income taxes.
Others comprise result components related to the
(partial) sale / divestment of equity investments, which
are classified from at equity to available-for-sale financial
assets and are therefore not included in the (Income) loss
of SFS from investments accounted for using the equity
method, net. Such results are already taxed or generally
tax free. Others may also comprise an adjustment for
material taxable Income (loss) of SFS from investments
accounted for using the equity method, net.
3 Average allocated equity of SFS for a fiscal year is deter-
mined as a five-point average in allocated equity of SFS
of the respective quarters starting with the allocated
equity of SFS as of September  of the previous fiscal
year.