Siemens 2014 Annual Report Download - page 201

247 D. Consolidated Financial Statements
337 E. Additional Information
213 C. Overall assessment of the economic position
214 C. Subsequent events
215 C. Sustainability and citizenship
225 C. Report on expected developments and
associated material opportunities and risks
242 C. Compensation Report and legal disclosures
242 C. Siemens AG (Discussion on basis
of German Commercial Code)

Centrally managed portfolio activities
Centrally managed portfolio activities reported a profit of
€  million in fiscal , compared to a loss of €  million
in fiscal . Results for the prior year included €  million in
charges related to two large projects remaining from the Metals
Technologies business, formerly reported within Industry, that
were not classified as discontinued operations.
Siemens Real Estate (SRE)
Income before income taxes at SRE was €  million in fiscal
, compared to €  million in fiscal . As in the past,
income from SRE continues to be highly dependent on dis-
posals of real estate.
Corporate items and pensions
Corporate items and pensions reported a loss of €  million in
fiscal , compared to a loss of €  million in fiscal .
Within these figures, the loss at Corporate items was €  mil-
lion, compared to a loss of €  million in fiscal . The
current period included expenses resulting from changes in
the fair value of warrants issued together with US $  billion in
bonds in fiscal , as well as negative effects related to legal
and regulatory matters. The fair value of the warrants depends
on the underlying Siemens and OSRAM share prices as well as
their respective volatilities. Because this effect is accounted
for in Corporate items, results for Corporate items are expected
to remain variable in coming periods. Centrally carried pen-
sion expense totaled €  million in fiscal , compared to
€  million in fiscal .
Eliminations, Corporate Treasury
and other reconciling items
Income before income taxes from Eliminations, Corporate
Treasury and other reconciling items was a negative €  mil-
lion in fiscal , compared to a negative €  million in
the same period a year earlier. The change year-over-year in-
cluded higher interest income from liquidity at Corporate
Treasury.
C.. Income
Year ended September ,
(in millions of €)   % Change
Energy 1,569 1,955 (20)%
Healthcare 2,027 2,033 0%
Industry 2,252 1,563 44%
Infrastructure & Cities 1,487 291 >200%
Total Sectors profit 7,335 5,842 26%
Equity Investments 328 411 (20)%
Financial Services (SFS) 465 409 14%
Reconciliation to Consolidated Financial Statements (700) (850) 17%
Income from continuing operations before income taxes 7,427 5,813 28%
Income tax expenses (2,028) (1,634) (24)%
Income from continuing operations 5,400 4,179 29%
Income from discontinued operations, net of income taxes 108 231 (53)%
Net income 5,507 4,409 25%
Net income attributable to non-controlling interests 134 126 –
Net income attributable to shareholders of Siemens AG 5,373 4,284 25%
As a result of the developments described in C.. SEGMENT
INFORMATION ANALYSIS, Income from continuing operations
before income taxes increased % year-over-year. With a
lower effective tax rate compared to fiscal  (% in fiscal
 vs. % in fiscal ), Income from continuing opera-
tions increased % year-over-year.
In fiscal , the hospital information system business, for-
merly included in the Healthcare Sector, and nearly all of the
Metals Technology business, formerly included in the Industry
Sector, were classified as discontinued operations. Income
from discontinued operations, net of income taxes in fiscal
 was € million compared to € million a year earlier.