Notes to the statement of income

Operating income in other activities

Operating income in other activities was lower than the prior year due to costs incurred in respect of the de-risking of pension liabilities in the UK and non-recurring positive results in 2013 in insurance.

Following the successful delivery of the performance improvement project, on-going restructuring and continuous improvement costs are included in corporate costs. 2013 numbers have been restated accordingly.

1st quarter

 

 

 

 

in € millions

 

2013

 

2014

Corporate costs

 

(45)

 

(44)

Pensions

 

(3)

 

(6)

Insurances

 

6

 

3

Other

 

(12)

 

(15)

Operating income in other activities

 

(54)

 

(62)

Net financing expenses

Net financing expenses decreased by €26 million to €37 million, mainly due to lower financing expenses as a result of bond repayments and lower interest on provisions due to changed discount rates.

Operating income to net income

1st quarter

 

 

 

 

in € millions

 

2013

 

2014

Operating income

 

217

 

216

Net financing expenses

 

(63)

 

(37)

Results from associates and joint ventures

 

3

 

6

Profit before tax

 

157

 

185

Income tax

 

(45)

 

(43)

Profit from continuing operations

 

112

 

142

Profit/(loss) from discontinued operations

 

(7)

 

3

Profit for the period

 

105

 

145

Non-controlling interests

 

(16)

 

(16)

Net income

 

89

 

129

Tax

The Q1 effective tax rate is 23 percent (2013: 29 percent). The tax rate was positively impacted by an adjustment to previous years. Excluding this and other one-off factors, the tax rate is 29 percent.