Annual Report 2003 2004

Corporate loss before taxes and minority interest consists of:
million €
Corporate administration
Pension expenses
Compensation for expenses (Steel)
Interest income/(expense), net
Results of equity investments
Insurance services
Others
Loss before disposal of
investments
Disposal of investments
Corporate loss before income
taxes and minority interest
Year ending
Sept. 30, 2002
Consolidation
Consolidation essentially contains the elimination of intercompany
profits in inventories. The elimination of the income from equity
investments in which the segments Steel and Services are jointly
involved also takes place in the Group consolidation. These jointly
owned companies are fully consolidated by the Steel segment in
which they are managed. In the Services segment, the equity method
of accounting for investments is used. Within Services, results on
investments from intra-group joint ventures amount to €16 million
(2002/2003: €4 million; 2001/2002: €3 million).
(95)
(206)
(14)
(21)
13
12
(34)
(345)
255
(90)
Year ending
Sept. 30, 2003
(88)
(218)
(13)
(23)
28
14
(27)
(327)
(5)
(332)
Year ending
Sept. 30, 2004
(138)
(193)
0
(55)
0
16
(10)
(380)
0
(380)
175
Financial Report
Consolidated financial statements
Apart from the compensation for expenses outlined above, the
accounting principles for the segments are the same as those
described for the Group in the summary of significant accounting
principles. The measure of segment profit and loss, which is used
to evaluate the performance of the operating segments of the Group,
is the “Income from continuing operations before income taxes and
minority interest“ line item presented in the consolidated statements
of income.
Sales between segments are transacted and settled at standard
market prices.
Allocation of sales by country is based on the location of the
customer and the location of the company. Allocation of financial
investments by country is based on the location of the investment
whereas the other investments are allocated according to the
registered office of the investing company.
Due to the high volume of customers and the variety of business
activities, there are no individual customers that generate sales
values that are material to the Group’s consolidated net sales.