Notes to the statement of income

Operating income in other activities

Corporate costs for the full-year 2014 were down by €25 million, due to cost measures taken. The amount of €129 million on the line Other included €85 million for incidental charges. These related to an external fraud suffered by one of our subsidiaries in the US, provisions for legacy items and project costs related to a divestment.

Fourth quarter

 

 

 

January - December

2013

 

2014

 

in € millions

 

2013

 

2014

(62)

 

(44)

 

Corporate costs

 

(207)

 

(182)

(4)

 

(1)

 

Pensions

 

(11)

 

(13)

(5)

 

(2)

 

Insurances

 

(1)

 

10

(2)

 

(85)

 

Other

 

(43)

 

(129)

(73)

 

(132)

 

Operating income in other activities

 

(262)

 

(314)

Net financing expenses

Net financing expenses for both the full year and Q4 decreased, mainly due to lower interest expenses on net debt as a result of repayment of high interest bonds. This positive effect is partly offset by (non-cash) higher interest on provisions. For the full year, net financing expenses decreased by €44 million to €156 million.

Operating income to net income

Fourth quarter

 

 

 

January - December

2013

 

2014

 

in € millions

 

2013

 

2014

116

 

83

 

Operating income

 

958

 

987

(48)

 

(41)

 

Net financing expenses

 

(200)

 

(156)

1

 

3

 

Results from associates and joint ventures

 

14

 

21

69

 

45

 

Profit before tax

 

772

 

852

(21)

 

(36)

 

Income tax

 

(111)

 

(252)

48

 

9

 

Profit from continuing operations

 

661

 

600

16

 

14

 

Profit from discontinued operations

 

131

 

18

64

 

23

 

Profit for the period

 

792

 

618

(13)

 

(16)

 

Non-controlling interests

 

(68)

 

(72)

51

 

7

 

Net income attributable to shareholders

 

724

 

546

Tax

The full-year effective tax rate was 30 percent (2013: 30 percent adjusted for an incidental non-cash tax gain of €124 million and several non-taxable items).