2005-2006 Financial Statements and Management Report
2005-2006 Financial Statements and Management Report
2005-2006 Financial Statements and Management Report
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34<br />
CORPORATE INCLUDES VARIOUS<br />
SERVICE AND NATIONAL HOLDING<br />
COMPANIES.<br />
CORPORATE<br />
Corporate embraces the Group’s head office including financial <strong>and</strong> insurance service providers as well<br />
as other service companies <strong>and</strong> the national holding companies. Following the sale of the residential<br />
real estate business, Corporate Real Estate <strong>Management</strong> is now also included in Corporate. Sales at<br />
Corporate were €148 million, compared with €138 million in the prior year.<br />
Expenditure in the reporting period amounted to €230 million before taxes, an improvement of €152<br />
million from the prior year. This comparison does not include the non-recurring charge allocated to<br />
Corporate in the prior year in connection with the revaluation of the investment in RAG Aktiengesellschaft.<br />
The improvement is mainly due to the receipt in the 2nd quarter of the €153 million Dofasco break-up<br />
fee. The consulting costs incurred in this connection are also included in the results of Corporate. Other<br />
changes compared with 2004/<strong>2005</strong> largely balance out. These include higher communications costs<br />
<strong>and</strong> costs for supporting research <strong>and</strong> development projects. Set against this were lower interest<br />
expense, lower pension costs <strong>and</strong> the absence of charges for risk provisions in the previous year. Net<br />
interest expense improved by €92 million to €(142) million. This was due to the elimination of net<br />
financial debt <strong>and</strong> a further decline in interest expense for pension obligations.
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