Siemens 2015 Annual Report Download - page 16

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Combined Management Report

Centrally managed portfolio activities (CMPA) included a gain
of € . billion on the disposal of Siemens’ stake in BSH Bosch
und Siemens Hausgeräte GmbH (BSH). This was partly offset
by an equity investment loss of €  million related to Unify
Holdings B. V. (Unify), an impairment of €  million related to
Siemens’ stake in Primetals Technologies Ltd. and losses from
other businesses. For comparison, fiscal  included equity
investment income from BSH.
As in the past, income from Siemens Real Estate continues to
be highly dependent on disposals of real estate. In fiscal ,
the disposals of real estate were lower than in the prior-year.
Corporate items were influenced by a number of items, includ-
ing €  million in severance charges for corporate reorganiza-
tion of support functions.
The change in Eliminations, Corporate Treasury and other rec-
onciling items included primarily negative effects related to the
change in fair value of interest rate derivatives.
A.3.3 Income
Fiscal year % Change
(in millions of €, earnings per share in €) 2015 2014
Power and Gas 1,426 2,215 (36)%
Wind Power and Renewables 160 6 >200%
Energy Management 570 (86) n / a
Building Technologies 553 511 8%
Mobility 588 532 11%
Digital Factory 1,738 1,681 3%
Process Industries and Drives 536 773 (31)%
Healthcare 2,184 2,072 5%
Industrial Business 7,755 7,703 1%
Profit margin Industrial Business 10.1% 10.6%
Financial Services (SFS) 600 466 29%
Reconciliation to Consolidated Financial Statements (1,138) (862) (32)%
Income from continuing operations before income taxes 7,218 7,306 (1)%
Income tax expenses (1,869) (2,014) 7%
Income from continuing operations 5,349 5,292 1%
Income from discontinued operations, net of income taxes 2,031 215 >200%
Net income 7,380 5,507 34%
Basic earnings per share 8.84 6.37 39%
ROCE 19.6% 17.2%
As a result of the development described for the segments,
Income from continuing operations before income taxes
decreased  %. This amount also included higher expenses – as
planned – for selling and research and development, primarily
at Power and Gas and to a lesser degree at Digital Factory and
Healthcare. Severance charges for continuing operations were
€  million, of which €  million were in the Industrial Busi-
ness. The tax rate of  % was lower than in the prior year, due
mainly to the disposition of the stake in BSH, which was mostly
tax-free. For this reason, Income from continuing operations
increased  %.
Income from discontinued operations, net of income taxes,
primarily included gains from the disposal of the hearing aid
and hospital information businesses, totaling € . billion and
€ . billion, respectively.
The increase in Basic earnings per share benefited substan-
tially from the disposal gains mentioned above. The percentage
increase was higher than for Net income due mainly to share buy-
backs which reduced the number of average shares outstanding.
Despite a significant increase in average capital employed with
the acquisitions at Power and Gas, ROCE rose due to the dis-
posal gains and was at the upper end of our target range.