access control systems. activity report [2006] - siemens · the siemens group in belgium and the...

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[2006]Activity Report

“Inherently forward looking”

Key Activities

A wealth of activitiesCommunications: total solution provider covering the entire commu-

nication portfolio: innovative devices, systems and services, complex

network solutions and infrastructures for operators of both wireless and

fixed networks and future-oriented IP networks for companies.

Siemens Business Services: high quality services and consulting span-

ning the whole IT value chain. In keeping with trends in the market, IT

outsourcing is a focal point of these activities.

Energy: a front-runner in power generation using gas turbines and co-

generation power plants, in power transportation and distribution, and

in energy management.

Industry: known for its breakthrough thinking and ability in the indus-

trial sector. Through integrated automation, we are able to help our cus-

tomers produce high quality products more rapidly, efficiently and cost-

effectively.

Automation and Drives: fully integratable automation products and sys-

tems, motors and frequency controllers, process instrumentation and

analysis tools, low voltage and installation equipment.

Industrial Solutions and Services: total solutions from design and deve-

lopment through building to end-to-end maintenance of production lines

and plants.

Transportation: specialist in rolling stock, such as railcars, passenger

cars, locomotives and trams. It offers a wide range of services, inclu-

ding electrification of lines, air-conditioning for rolling stock and signa-

ling systems for public transportation.

Medical Solutions: advanced total solutions for the healthcare sector:

medical imaging for diagnostic purposes and treatment, medical and ad-

ministrative software designed to optimize workflows and increase the

efficiency of hospitals and doctors’ offices.

Building Technologies: market leader in developing and implementing

intelligent total solutions for building management. Its offering includes

building automation solutions, heating, ventilation and air-conditioning

systems, fire detection, fire extinguishing and gas alarm systems, elec-

tronic security solutions, anti-intruder solutions and identification and

access control systems.

AntwerpHerentals

ZaventemBrussels

Huizingen

Namur

Luxembourg

Ninove

Ghent

Part I: 4

A word from the chairman and strategy

Milestones 2006

Foreword 4

Performance & portfolio 7

Operational excellence 10

People excellence 12

Corporate responsibility 14

Part II: 18

Development of activities in 2006

Communications 19

- Operators 19

- OTN 20

- Enterprises 20

Siemens Business Services 21

EIT 22

- Energy 22

- Transportation 22

- Industry 23

Building Technologies 24

Medical Solutions 25

Luxemburg 26

Bosch Siemens Home Appliances 27

Fujitsu Siemens Computers 27

Siemens VDO Automotive 27

ADB 27

Part III: 30

Topics and trends – Siemens’ outlook

Energy 32

Water 36

Security 38

Healthcare 42

Mobility 44

ContentsOctober 2005

De Persgroep publishers opt for Totally Integrated Power for their

new printing facilities in Lokeren. >>> page 20.

November 2005

Siemens acquires the Bewator group at international level, a key

player in access control. >>> page 22.

Medical Solutions unveils the world’s first dual source computer-

assisted tomography system, giving heart to people who may

have had a sudden stroke. >>> page 23.

February 2006

The Brussels Capital Region places an order for an integrated

security solution including fire detection for the tunnels in the

small ring road. >>> page 40.

The Federal Public Service Finance enters into an agreement for

an extensive datawarehousing and datamining project, with the

aim of detecting fraud and analyzing risk. >>> page 21.

March 2006

Siemens is made a technology partner in the MADUF project, in-

vestigating the potential of mobile TV in Flanders. >>> page 44.

April 2006

Mobistar entrusts Siemens with the operational management of

its IT data storage and archiving requirements. >>> page 21.

May 2006

Siemens BeLux is made one of the global competence centers

for water technology within the international Siemens group.

>>> page 36.

The new registered offices of Siemens in Anderlecht are officially

inaugurated. The move heralds a new mobile way of working.

Infrabel signs a major contract with Siemens for the supply, in-

stallation and maintenance of ETCS equipment on the rail net-

work. >>> page 45.

June 2006

Belgacom International Carrier Services opts to develop the first

new generation fiberoptic communication network on mainland

Europe, together with Siemens. >>> page 25

Nokia and Siemens announce that their telecom operator ac-

tivities will be merged in a 50-50 joint venture: Nokia Siemens

Networks.

You will find out more about its operations and results in Belgium

in the 2007 annual report.

Siemens and Hesse-Noord Natie ensure that Antwerp is the first

European port in the network of secure corridors. >>> page 39.

Announcement of the acquisition of Bayer Diagnostics. Following

the announced takeover of DPC in April this is the second acquisi-

tion to significantly expand the healthcare portfolio in immuno-

diagnostics. >>> page 7.

The takeover of Kühnle, Kopp & Kausch – producers of steam

generators among other things – fills a gap in the Siemens power

generation portfolio. >>> page 7.

July 2006

Siemens supports bus builder Van Hool with its products and

technologies, to develop an energy-saving hybrid bus.

>>> page 34.

September 2006

Siemens Water Technologies receives its first order in Belgium.

>>> page 37.

SNCB/NMBS awards contract to Siemens, to install security instal-

lations at 50 Belgian train stations, including camera monitoring

and intelligent image analysis. >>> page 39.

Belgian entity Enterprise Networks is given responsibility for

region “West”, covering Benelux and France. >>> page 24.

Strong growth continues to be recorded in exports, now repre-

senting 37% of sales. >>> page 9.

(*) The Siemens 2006 fiscal year runs from October 1, 2005 to September 30, 2006.

Milestones 2006*

Working for SiemensAt the end of fiscal 2006, the number of

employees working at Siemens in Belgium

and Luxembourg was 3461. They are dis-

tributed across various sites, the largest of

which are in Brussels, Huizingen and Heren-

tals. In Wallonia, most activities are centra-

lized in Namur.

Key statistics

Siemens Group in millions of euros

Siemens Group Siemens nv SBS nv ADB nv Siemens VDO Others Consolidation

BeLux Automotive nv

New Orders 1”251’5 1”082’2 103’7 58’9 12’3 15’5 -21’1

Sales 1”212’1 1”062’8 92’9 52’1 12’3 14’6 -22’7

therein direct Export 451’1 373’3 4’7 50’2 12’3 10’7

Material Investments 13’3 10’2 2’0 0’9 0’2

Personnel 3.461 2.820 384 162 9 86

Personnel Costs 311’4 248’0 42’9 12’0 0’9 7’6

Others = Siemens Holding, SFBS, Compex

Legal structure

The Siemens Group in Belgium and Luxem-

bourg comprises a number of independent

legal entities which are responsible for one or

more core activities. In most cases, Siemens

AG owns 100% of shares in the subsidiaries.

These entities market their products under

the Siemens logo and are managed at local

level. Although Siemens VDO Automotive

and ADB are wholly owned by the Group,

they use other brand names and report di-

rectly to their parent company. Fujitsu Sie-

mens Computers and Bosch Siemens Home

Appliances are 50/50 joint ventures. They

operate under their own logos and brand

names and report directly to their own head

office.

Siemens nv > Energy > Industry > Transportation > Communications > Building Technologies > Medical SolutionsSiemens Business Services nv (SBS) > IT servicesSiemens Luxemburg* > Siemens in Luxemburg

ADB nv > Products and systems for airports

Siemens VDO Automotive nv > Automotive products, systems and solutions

B/S/H Bosch Siemens Home Appliances nv > Home Appliances

Fujitsu Siemens Computers nvFujitsu Siemens Computers IT Product Services nv

*Branch offices of Siemens nv and Siemens Business Services nv

vooruitziend

Dear Reader,

2006 was a radical year for Siemens. Major decisions were taken at Siemens international level, impacting significantly on our re-

gion. Yet we still managed to meet our operational goals thanks to the drive and dedication of our employees and the trust placed

in us by our customers. Siemens focuses on the future in sectors displaying considerable potential for growth, such as Energy,

Security, Medical Solutions, Mobility and Industry, with IT solutions running as a common thread throughout. We continue to strive

for profitable growth, drawing on our power of innovation to enhance the quality of life. And because we are inherently innovative,

I am convinced we will succeed in our aim.

Challenges & opportunities

In 2006, a decision was taken at international level for the

two departments within Communications, namely Networks

and Enterprise, to look for partners to strengthen their market

position. We are convinced that by pooling expertise within

new partnerships, we will gain and retain a position among

the world’s top players.

In 2007, Siemens in Belgium and Luxembourg will undoubt-

edly take on a new look. Driven by the market and our cus-

tomers, we are facing a unique opportunity and challenge to

adapt the structure of our company accordingly. Under the

name of Go4 BeLux, we are preparing the ground for the next

few years.

We ask all our employees for their open and creative input to

help shape the future of the company. Based on their contri-

bution and on thorough research, we are mapping out an or-

ganization to reflect our culture and respond to market expec-

tations. Existing structures and processes are being reviewed

and evaluated. After all, we don’t just want to guarantee our

customers high quality systems and solutions. We also want

to ensure they benefit from our flexible, competitive and for-

ward-looking entrepreneurial zeal.

Our objectives remain ambitious

We are continuing to chart our strategic course, heading to-

ward sustainable growth and profitability. In our traditional

business, we want to grow twice as fast as the market. Our

local value added involves implementing innovative projects

tailored to the individual needs of our customers, generating

new business, creating new business models or tapping into

new market sectors.

Businesses in every sector are exploring ways of using

energy and natural resources more efficiently – water being

just one example. Each and every day there are reports in the

media calling for greater safety, security and protection of the

environment in which we live. In the world of healthcare,

demand for integrated solutions is growing. So too is the need

for automation and new public and industrial infrastructural

solutions. These trends or growing market sectors are evident

not just in Belgium and Luxembourg, but also in our export

markets – especially Africa.

Our key assets are our forward-looking employees, clear focus

and wide-ranging portfolio, giving us the necessary strength

and vision to really make a difference for our customers.

Foreword...activity report 2006 Foreword

4

Francis Verheughe

Chairman of the Siemens Group Belgium-Luxembourg

Fit4MoreFit4More is the strategic program that Siemens has devised with growth and profit-

ability in mind. Our strategy rests on four cornerstones. ‘Performance and portfolio’

focuses on what we do and what we want to achieve. ‘Operational excellence’ is

about the way in which we will achieve this. ‘People excellence’ describes how we

will encourage the best from our people so that we meet our objectives. And ‘corpo-

rate responsibility’ depicts how our company intends to be a good citizen.

Siemens’ unique strength is its particularly wide-ranging portfolio of activities. We offer solutions and

services in information and communication, industry, energy, transportation, building technology

and healthcare. In all these areas of activity, we foster the ambition to grow significantly faster than

the market – in a sustainable and profitable way.

Performance & portfolio

activity report 2006 Strategy

6 7

2006 was a turbulent year for Siemens in Belgium and Luxembourg. Our new orders increased from EUR 1218 million to EUR 1252 million, which is a positive sign for the future. Our sales dropped from EUR 1302 million in 2005 to EUR 1212 million in 2006, with after-tax profits falling from EUR 75.7 million to EUR 22.2 million. This de-cline with respect to the previous fiscal’s figures can partly be explained by the exceptional tax benefits in 2005 and extra costs in 2006.

We are now building up an integrated and forward-look-ing portfolio in the areas of energy, water, security, health-care, mobility and industry. This strategy is also reflected in the portfolio changes over the past year. - At the end of 2005, Siemens acquired the Bewator group,

significantly extending the portfolio of Siemens Building Technologies with access control solutions.

- The acquisition at international level of Flender Hol-ding in 2005 – which sells gear systems, motor reducers and couplings – led to effective cooperation activities between the two groups in the last fiscal year. Flender Belgium was integrated into Siemens Automation and Drives on October 1, 2006.

- The acquisitions of Bayer Diagnostics and DPC have en-riched our portfolio in the field of molecular diagnos-tics. The acquisitions are in keeping with the strategy of making Siemens the first integrated diagnostics com-pany – enabling us to offer a comprehensive portfolio from a single source. This immediately gives us a leading position on the immunodiagnostics market.

- The general interest in cogeneration and biomass in po-

wer generation continued its steady growth over the past year. Siemens reinforced its market position in this sector thanks to the takeover of Kühnle, Kopp & Kausch. This company’s range of products consists of steam turbines with outputs ranging from a few hundred kW to several MW. The takeover fills a gap in the Siemens portfolio.

The Information and communication segment underwent fundamental changes.- The Networks department – which supplies telecom

operators with telecom networks, infrastructure and services – was turned into Siemens Networks NV/SA. This company is being integrated into Nokia Siemens Networks. This 50/50 joint venture now ranks among the top three players in the global market, and has all the assets needed to continue its upward journey.

- The Enterprise department – our communication sys-tems, services and solutions for companies – was accommodated within Siemens Enterprise Communica-tions NV/SA. The responsibilities of Siemens Enterprise Communications Belgium fundamentally expanded, both within Europe and in the international arena. Talks are currently under way at international level with a view to a future partnership.

- The ‘Product Related Solutions’ department of Siemens Business Services was sold to Fujitsu Siemens Compu-ters. This sale was in line with the strategy adopted by Siemens Business Services to focus primarily on services incorporating significant added value.

Key statistics

Siemens Group in millions of euros

Siemens Group Siemens nv SBS nv ADB nv Siemens VDO Others Consolidation

BeLux Automotive nv

New Orders 1”251’5 1”082’2 103’7 58’9 12’3 15’5 -21’1

Sales 1”212’1 1”062’8 92’9 52’1 12’3 14’6 -22’7

therein direct Export 451’1 373’3 4’7 50’2 12’3 10’7

Material Investments 13’3 10’2 2’0 0’9 0’2

Personnel 3.461 2.820 384 162 9 86

Personnel Costs 311’4 248’0 42’9 12’0 0’9 7’6

Others = Siemens Holding, SFBS, Compex

Sales

Communications 34% 39%

Siemens Business Services 8% 8%

Energy 15% 8%

Transportation 2% 2%

Industry 27% 30%

Building Technologies 5% 5%

Medical Solutions 6% 5%

Others 3% 3%

2005

2006

8 9

Mali

Senegal

Burkina Faso

Central Office nov. ‘04

Benin

GhanaCameroon

Eq. Guinea

Gabon

Rep. Congo

Chad

Togo

Dem. Rep. of Congo

ExportsThere was a positive development in exports in 2006, which

drive our growth. The share of exports in group sales rose from

32% in fiscal 2005 to 37% in fiscal 2006. Non-BeLux activities

represented a total of EUR 453 million. All in all, Siemens Bel-

gium-Luxembourg operates in over 190 countries. This broad

scope of activity is essentially thanks to two entities that are

active internationally. Firstly, we are the global market leader

in mining and metros with OTN or the Open Transport Net-

work. Secondly, Siemens subsidiary ADB – world leader in

airport lighting systems – is by its very nature a highly inter-

national player.

The entities Communications, Energy and Industry are

responsible for the lion’s share of sales. Export sales genera-

ted by Communications dipped slightly from EUR 244.5 mil-

lion in 2005 to EUR 235.6 million in 2006. Energy, Industry

and Transportation recorded a significant increase in 2006

with export sales of EUR 185.7 million, compared to EUR

149.1 million the previous year.

Siemens Belgium has held business responsibility for 19 coun-

tries in West and Central Africa (WCA) since June 2004. The

Communications entity has performed particularly well in this

area. Over the last few years, we have developed, built and

upgraded a large number of communication networks, for

fixed and mobile operators as well as for companies. Since

October 1, 2006, the WCA region actually covers 20 coun-

tries, as we were also awarded business responsibility for the

Democratic Republic of Congo.

In North Africa, the Energy and Industry entities have been

consolidating our reputation as a reliable, customer-focused

and future-oriented partner for several decades now. This has

enabled us to gradually expand our options and perspectives.

Market development in Algeria, for example, where Industry

has been active for a long time with various water projects,

now also looks promising for the industrial market. Over the

next few years, our Energy and Industry entities will step up

their efforts in export business. We want to make maximum

use of existing and new partnerships also emerging from

recent acquisitions by Siemens at international level. We will

also expand our scope of activity and customer base by means

of our various competence centers.

The Medical Solutions entity received an order from the cen-

tral hospital in Dakar, Senegal. This marks a first for Medical

Solutions in Africa, with the order including commissioning

of the equipment, staff training and support for a period of

three years.


Regional Headquarter: West- and Central-Africa

Export

Export milestonesAlgeria:• We undertook a water pipeline project in Beni Haroun. • We supplied an installation of electrical and hydromechanical equip-

ment for pumping stations east of Algiers. Cape Verde Islands:• Order for the ground lighting system for the runway at Amilcar Cabral

International Airport, the principal airport in the Cape Verde Islands. Democratic Republic of Congo:• Various pumping stations in Kinshasa were completely renovated. • We won the order to review the complete high-voltage network. Gabon:• A new contract was signed with Gabon Telecom for a whole series of

projects. • A call center solution was supplied for the Ministry of Finance. Ghana:• Complete renewal of the telecommunications infrastructure for the

Ghanaian parliament. Niger:• For the operator Sonitel we digitized the DOMSAT satellite backbone and

installed a fiberoptic network. Senegal:• Large communication installations were installed for utility company

Senelec. • The Hôpital Principal in Dakar placed a first order for a CT scanner, in-

cluding commissioning, training of personnel and servicing for a three-year period.

Emphasized countries

Energy - Medical Togo

Benin

Industry - Medical Senegal

Dem. Rep. of Congo

WCA Countries (focus countries in green)

Burkina Faso

Cameroon

Central African Rep.

Chad

Gabon

Gambia

Ghana

Equatorial Guinea

Guinea Bissau

Ivory Coast

Liberia

Mali

Niger

Sierra Leone

Rep. Congo

In all our activities, we strive for operational excellence. We implement a large number

of enterprise-wide projects geared to ensure continuous improvement in three areas:

customer focus, innovation and global competitiveness.

Operational excellence

Customer focusThe goal of our customer focus program is to optimize our

partnership with existing and new customers. We want to

serve our customers as well as possible, not only by taking

a specific vertical approach to the market for each area of

activity, but also, more than ever, by offering integrated solu-

tions that span every department. Besides introducing Key Ac-

count Management, we have designated a number of market

segments that we are going to prioritize for a cross-divisional

or ‘Siemens One’ approach. In this way, we can give our cus-

tomers the benefits of our unique strength. Our wide range

of activities and in-depth knowledge of business processes in

different market segments means that we can offer innova-

tive total solutions for complex infrastructure projects such as

airports, hospitals and sports stadiums. Our integrated secu-

rity systems are a significant asset here.

InnovationInnovation drives our business: Siemens ranks number two

in patent statistics in Europe, and holds more than 53,000

patents in its portfolio. At national as well as international

level, we are constantly looking for systems and solutions that

make life easier and more pleasant.

To do so, we rely on the expertise of our research and deve-

lopment department. Siemens stands for ‘open innovation’,

at national and international level. We also work together

with the Flanders institute for the promotion of innovation by

science and technology and the Belgian interdisciplinary insti-

tute for broadband technology.

Obviously we do not just restrict ourselves to research and

development – all our employees are encouraged to let their

creativity and innovative spirit come to the fore. For instance,

we have come up with many innovative sector-related solu-

tions in this way, thanks to our many years of experience in

diverse sectors, such as banking, pulp & paper, chemicals,

telecoms, pharmaceuticals, healthcare and the public sector.

We are the preferred supplier for many businesses and organi-

zations in these sectors. This position gives us the opportunity

to develop future-oriented solutions to help customers stay

ahead of the field.

We also aim to approach and do business with our custo-

mers in an innovative way. Our goal is to develop new business

ideas, offer creative new services with high added value,

develop new forms of cooperation and explore new business

models.

Global competitivenessOur experience and expertise are pooled in various centers of

competence, to be deployed around the globe. For instance,

Siemens Belgium-Luxembourg is responsible for solutions in

the paper, glass and steel sectors in various European coun-

tries. We also enjoy extensive responsibility in the pharmaceu-

tical industry and in the field of turnkey water installations,

empowering us to convert our know-how across borders into

added value for our customers.

In addition to this, we work hard to optimize our cost struc-

ture and streamline our processes in line with best practices.

An innovative project in this respect is PM@Siemens or Project

Management @ Siemens, in which project managers are able

to run their own business in true entrepreneurial style. The

aim is to optimize and support the management of all cus-

tomer projects, whether large or small, complex or straight-

forward.


10 11

Our employees are our driving force. They are the ones who do their

utmost day after day to achieve our objectives – in the short as well as the

long term. At the same time, they are constantly on the lookout for change,

adapting our company to our rapidly changing environment.

Managing competencies

Over the last year, various projects have been launched with

the aim of getting the best out of our employees – focus has

been placed on strengthening skills and fostering leadership

qualities.

To achieve this dual objective, competence management plays

a key role. It is used to chart strengths and weaknesses – at

individual or group level – and to train employees with a tar-

geted and long-term approach. A large number of these trai-

ning courses are run in-house. This approach has enabled us

to carry out over 2000 assessments over a two-year period.

With the ‘Boost your talent’ campaign, administrative staff

were given the option to voluntarily have their skills screened

and boosted via training courses. This campaign was

launched with the assistance of Unique Interim. They carried

out screening sessions based on the most sought-after com-

petencies on the market. Afterwards, employees were given

the opportunity to do something about their weaker points

and in turn increase their employability. Our aim is not just to

further boost the talents of employees, but also to enhance

flexibility: a particular trump card in view of the global market

circumstances.

Developing leadership

Various programs, based on competence management, have

been tailored toward strengthening leadership at various

levels. At the top of the company, potential ‘successors’ were

selected for key functions in Belgium and Luxembourg. These

are employees who in time could sit on the Group’s execu-

tive committee or play a role in the successor planning of Sie-

mens in Belgium and Luxembourg. This long-term program

has already borne its first fruit – it has been possible to fill

several vacancies for senior functions immediately with inter-

nal staff.

To enable employees to attend training courses and seminars

at senior level, Siemens joined forces with other large compa-

nies. Opportunities are expanded if costs are shared.

Our cooperation with Management Trainees also falls within

this scope. It offers highly qualified employees the opportu-

nity to continue their journey up through the company.

Culture of performance

The ‘Performance Culture’ program was launched at inter-

national level, with the Belgian reward policy being applied

worldwide. For many years now in our region, we have been

rewarding our employees on the basis of their performance.

Peopleexcellence


12 13

2006 I 34612005 I 38172004 I 3994

Siemens aims to continually improve the quality of life. This means trying to improve

life not just for ourselves or for today. We want to make an active contribution to

shaping life for future generations.

‘Corporate citizenship’ is our commitment to the environment

and to economic, social and ethical issues. To guide us, we

follow a clear and transparent set of corporate rules. And in

doing so, we hope to ensure the success and future of our

company.

Corporate ResponsibilityPart of the community

activity report 2006 Siemens strategisch bekeken

14 15

Considerate employerIn today’s demanding business climate, people have to work

at an incredibly hectic pace. Through various programs, Sie-

mens ensures that employees are able to achieve a balance

between their working and private life.

The ‘location concept’ is one such program – employees are at

liberty to work in a choice of flexi-offices located throughout

the country. This concept is made possible thanks to various

new Siemens technologies. In 2006, a satellite office was also

opened in Merelbeke.

Our decision to work together with Ekivita is also based on

the desire to achieve this work-life balance. Our employees

can use the Ekivita solution at home or in the office to contact

specific service-providers at favorable rates – with the benefit

of saving time and making life easier.

Sustainable partner The optimum use of energy and non-renewable natural re-

sources is one of our prime concerns. To this end, we offer our

customers a variety of products, systems and services, ranging

from environmentally friendly co-generation power plants and

gas turbines to energy audits.

In 2006, Siemens in Belgium also became a partner of the ‘Ener-

gy and environment awards’, which is supported by the Walloon

ministry for the environment and Walloon ministry for energy.

The EEAwards 2006 involved more than 11 awards, including

the Siemens Institutions Big Bang Award. This award was pre-

sented to the ‘Laboratoires de Chimie des Matériaux Inorga-

niques’ of the university of Liège (ULG) for its many advanced

research and development activities and for building prototypes

in connection with renewable energy sources.

Good citizen Siemens gives its commitment to various social issues in its

role as a good citizen.

Generation 21‘Generation 21’ is our program of initiatives to promote edu-

cation and research. In the future we aim to devise a coherent

and consistent strategy to unite our various initiatives.

Caring Hands ‘Caring Hands’ is the umbrella concept pooling together pro-

grams and projects undertaken by Siemens for charity. Within

this context, we continue to actively support the Corporate

Funding Program (CFP). Our company is one of the founding

members, together with other companies and non-govern-

mental organizations. This cooperation between the world of

business and NGOs gives us the means to put our vision into

practice in a flexible way as well as to generate innovative

ideas. By contributing in this way, we aim to promote sustain-

able socio-economic projects in the southern hemisphere,

together with the CFP. In one such innovative project – in the

south of Mali – we support Kafo Jiginew. This is a micro-fi-

nancing institution that has been providing low-cost loans to

people in the south of Mali since 1995, based on borrowings

from non-profitmaking organizations. The innovative nature

and efficiency of this concept have since hit the global spot-

light, when the Nobel Peace Prize was awarded to economist

Dr. Muhammad Yunus from Bangladesh – Dr. Yunus pioneered

the microcredit model.

The main recipients of Kafo Jiginew loans are poor farmers

who are not particularly welcomed by traditional banks. This

model offers them the chance to rise up from poverty, as it

breaks through the vicious circle of exploitation. The inhab-

itants stand surety for each other and are given sufficient

capital to invest in tools or equipment to produce their cotton

crops.

This is just one interesting example of the opportunities the

CFP gives us. The microfinancing model clearly shows how

dialog between parties with at times diverse outlooks can pro-

vide a breeding ground for innovative projects.

In 2006, we also supported the ‘Green of Hope’ golf tourna-

ment. The aim of this tournament is to inform and create

awareness for a wide public, prompting them to support the

Belgian Cystic Fibrosis Association. Nicolas Colsaerts – the

promising golfer we have been sponsoring for 6 years now

– had previously decided to give his backing to ‘Green of

Hope’.

duurzaam

Development of activities in 2006

Market development

The expected growth in the gross national product was adjusted upward in the

course of 2006, from 2.2 to 2.4%. Company investments increased and business

activity grew for the third year running. The utilization of production capacity also in-

creased, in turn increasing the need for investment. The financial situation of many

companies improved. Nevertheless, investments between 2002 and 2006 remained

7% lower than in the previous 5 years.

activity report 2006 Development of activities in 2006

18 19

Operators

Carrier Solutions continued along its chosen path of growth

and clinched a number of attractive deals. The entity focused

on innovative technologies, such as WiMAX, the digital house

and Fixed Mobile Convergence. It also continued to spear-

head activities in the fields of security, mobility and managed

services.

Belgacom International Carrier Services opted to develop the

first new-generation fiberoptic communication network in

mainland Europe, together with Siemens.

The entity developed the platform for Belgacom TV a few

years ago, for Belgacom’s national carrier services, which will

support 100,000 users by the end of 2006.

We are also a leading supplier for other carriers and cable

companies, such as Proximus, Mobistar and Base.

Carrier Services was also particularly active in its second

domestic market, i.e. West and Central Africa. The mobile

communications market in particular is enjoying growth in

this area. The current figure of 113 million African users is

expected to increase to 378 million by 2011. International

competition on the African continent is therefore growing as

a result.

Carrier Export succeeded in further strengthening its relation-

ship with leading mobile carriers such as Safaricom (Kenya),

Malitel (Mali), Sentel and Sonatel (Senegal), Telmob (Burkina

Faso) and MTN (Ivory Coast). Apart from network extensions

and introducing new applications, mobile data (GPRS) was

introduced to various carriers and in Kenya, the first UMTS

test call was made. A solution developed in Belgium, Virtual

Money Transfer (VMT), was successfully introduced in Mali.

VMT makes it possible to transfer extra calling credit via SMS

to other phone cards, e.g. parents transferring credit to their

children’s phone cards. Innovative solutions such as these

give carriers the opportunity to stand out from the crowd.

New contracts were also concluded with fixed network car-

riers to expand their fixed network or broadband offering.

In Niger, we digitized the DOMSAT satellite backbone and in

stalled a fiberoptic loop for Sonitel. A framework agreement

was signed with Gabon Telecom for various projects.

At the end of fiscal 2006, Nokia and Siemens announced their

intention at international level to merge their service provider

communication activities. Nokia Siemens Networks NV is a

leading global player with a huge presence and considerable

potential for synergies.

Permanent management of ASTRID service center

ASTRID is the dedicated telecommunication network for all

Belgian emergency and security services – local and federal

police, fire department, civil protection, customs, service 100,

national security, national defense and the coastguard.

In 2006, Siemens was selected by ASTRID to provide services

for permanent management of the ASTRID service center.

This involves contact with 20,000 users, offering them first-

and second-line support, 24/7.

We will make sure that qualified staff are always present at

the center. A plan was produced together with ASTRID to en-

sure that the employees involved would have the necessary

know-how in the field of telecommunication networks.

Communications>>> www.siemens.be/communications

20 21


OTN

The success of OTN continued into 2006, with a large number

of new orders being received. The Open Transport Network

installed for Electrabel was extended to 300 nodes, making it

one of the largest OTN networks in the world.

In Asia, OTN was installed for the new deep-sea port in Shang-

hai, which will develop into the central navigation hub for

Asia in the long term. OTN connects the various operational

sites of the port to sites on the mainland and spans the gap of

the 35-km long bridge separating the two areas.

Global presence

OTN was also installed at the following places in 2006:

• Minatitlan Refinery in Mexico

• George Washington Bridge in the United States

• Beijing Metro Corporation in China

• Randstad Rail in the Netherlands

• Gentse tramlijnen

• Taksebt Water Pipeline in Algeria

Enterprise Networks

Enterprise Networks offers companies forward-looking com-

munication systems, solutions and services.

The market in which Enterprise Networks operates is un-

der-going rapid change. Demand for traditional telephone

exchanges is dwindling and customers are migrating toward

systems based on the internet protocol. What’s more, the

rapid strides forward in technology have created new require-

ments for companies.

To meet these various challenges, Enterprise Networks has

been going through a process of complete reorganization

since 2004. The entity increasingly acts as a solution and

services provider, focusing on activities such as sales of IP

soft switches. It also invests in new applications in the field of

mobility and security and offers a wealth of new services such

as managed services and hosted solutions.

Despite the turbulent times this entity is going through, it

managed to land a number of great orders. For instance, a

contract was concluded with a major financial institution for

completely renewing the telecommunication infrastructure in

550 of its Belgian branches. Enterprise Networks signed up

for carrying out the analysis, strategic consulting, configura-

tion and implementation of the new IP-based platform. It will

also be responsible for managed services – in other words,

overall operational management of the infrastructure. The

aim of this state-of-the-art communication tool is to make it

possible to offer a better service while considerably reducing

costs. This contract reinforced the division’s presence in the

banking sector. Contracts were also concluded with RTBF and

Standaard Uitgeverij for integrated IP communication plat-

forms. At the end of the fiscal, Enterprise Networks entered

into an agreement with the Federal Public Service Finance

to implement the MODA project. The aim is to develop a

mobile ICT solution enabling customs officers to carry out their

inspection activities remotely.

Positive results were also recorded in export activities.

For instance, a contract was concluded for renewing the

complete telecom infrastructure of the parliament in Ghana

and a project was launched with the Senegalese electric-

ity company Senelec. The Gabon ministry of finance opted

for Enterprise Networks’ call center solution. New distribu-

tors for enterprise communication systems were recruited in

Benin, Ivory Coast, Malawi, Saudi Arabia, Uganda, Yemen and

Zambia.

Communications>>> www.siemens.be/communications

Siemens Business Services2006 was an eventful year for Siemens Business Services

(SBS). A new strategic direction was charted. The compa-

ny will now specialize in two key areas: Operation Related

Services (IT outsourcing) and Solutions (SAP implementa-

tion projects and innovative solutions). SBS boasts conside-

rable strengths in both fields in Belgium and Luxembourg. As

before, the underlying aim of SBS is to provide businesses

with the best possible support in developing their core activi-

ties and improving their performance, by making innovative

use of information and communication technology.

The Product Related Services business unit was sold to Fujitsu

Computers with effect from April 1, 2006, where it forms the

heart of a new service department.

In 2006, Siemens Business Services managed to significantly

improve its position in the public sector.

Strong partner for governmentMajor contracts were awarded by:

•The Belgian Chancellery of the Prime Minister: the federal

government awarded SBS the “e-premier” contract, to de-

velop a file management system for the council of ministers

and consultative committee.

•Siemens Business Services has been chosen to map out a

new service-oriented architecture for Sigedis. We are respon-

sible for rolling out all applications involved in supporting

the core activities of this organization, i.e. collating and sto-

ring all work-related data to be used to calculate pensions.

•The Federal Public Service Finance: SBS has been awarded

an extensive datawarehousing and datamining project.

•European services, both for the Commission and Directo-

rates-General: SBS is responsible for customized architecture

for DG Sanco, ESP-DESIS framework, IDABC program.

These various orders have helped the entity underline its

strong position in major ICT reengineering projects.

SBS has also built up relationships based on trust with busi-

ness customers. For instance, we are responsible for the

operational management of data storage and archiving for

Mobistar, from our Data and Command Center in Huizingen.

Arcelor has opted for SBS to provide a rapid response to IT

problems. The long-term cooperation with Daikin continues

to flourish, focusing on further enhancing the ICT infrastruc-

ture.

We offer web hosting for 39 servers for Atlas Copco.

Growing interest for Data and Command Center Huizingen

In 2005, Siemens Business Services and Siemens Communi-

cations opened the Data and Command Center in Huizingen.

From this center we can offer private and public sector cus-

tomers a unique service, as a single-source supplier for the

combined management of IT and telecom infrastructures.

In 2006, Mobistar was one of a number of organizations op-

ting to make use of these services – for the next three years.

Siemens Business Services will be responsible for monitoring

the storage and archiving infrastructure, as well as for ma-

naging, processing and resolving incidents. Siemens will also

manage and implement all change requests relating to the

storage infrastructure and its expansion, from the Data and

Command Center.

>>> www.siemens.be/sbs

22 23


Industry covers two divisions: Automation and Drives, and

Industrial Solutions and Services.

AUTOMATION AND DRIVES Automation and Drives offers

industrial customers a fully integratable package of high-

quality industrial automation products. The Totally Integrat-

ed Automation concept integrates solutions in the field of

automation, drives – motors and frequency controllers; in-

strumentation and analysis devices; low-voltage and installa-

tion equipment (including home automation).

Automation and Drives has set itself the target of being

present – either directly or indirectly – in every industrial plant

and is clearly number one in its field of activities. The division

recorded strong growth.

The acquisition at international level of Flender Holding

in 2005 – which sells gear systems, motor reducers and

couplings – led to effective cooperation activities in Belgium

in the last fiscal. Flender Belgium was integrated into the

Automation and Drives Operating Group on October 1, 2006.

INDUSTRIAL SOLUTIONS AND SERVICES specializes in

total industrial solutions for automation in the steel and paper

sector, traffic signaling, mobility management and environ-

mental systems, services to industry, industrial IT solutions

and the design and construction of switchgear.

The paper sector has to contend with high energy prices

on the one hand and a drop in paper prices on the other.

Demand for traditional automation projects went down.

We therefore directed our attention to innovative solutions

such as the treatment of water and waste water, alternative

energy sources and technology-based services. For instance,

we landed the Foxfire contract in the Netherlands, involving

a turnkey installation to convert paper waste into secondary

fuel. The installation was commissioned in July 2006.

In 2006, Siemens BeLux became the center of competence

for water supply systems and pumping stations. With the new

USFilter portfolio, Siemens Belgium plans to become a key

player in this field in the next few years. Industrial Solutions

and Services installed a membrane solution to produce high-

quality process water for Kaneka Belgium, a subsidiary of the

Japanese Kaneka Corporation.

A major contract was signed with Soenen, which operates in

the cardboard sector in East Flanders, to optimize its internal

logistics systems.

A three-year framework agreement was entered into with the

Flemish government for the supply of traffic controllers.

Retrofit at ALZ A particularly complex project from a technology point of

view was implemented for steel manufacturer ALZ in Genk,

involving the modernization of two roll grinding machines.

They were given a new lease of life by integrating SINUMERIK

840 Di digital controllers. This well-designed solution dove-

tailed perfectly with ALZ’s requirements, budget and future

planning.

De Persgroepfit for the future Publishers De Persgroep are building state-of-the-art prin-

ting facilities in Lokeren, equipped with the latest techno-

logy. Siemens was responsible for the energy supply based on

its Totally Integrated Power concept, home automation and

security.

IndustryThe Transportation division is active in the field of rolling

stock – railcars and trams. It is also a major contender in the

field of energy supply, air-conditioning and signaling for mass

transit systems.

Despite extremely fierce competition, the division was able

to strengthen its market position in 2006. Major orders were

received from De Lijn for 10 trams and from SNCB/NMBS for

electronic signaling stations.

A large-scale contract was concluded with Infrabel for the

supply, installation and parameterization of at least 4000

signaling units. This contract will run for the next five years.

A 20-year maintenance agreement is also linked to the

project.

Transportation>>> www.siemens.be/industrie>>> www.siemens.be/transport

Energy offers solutions and services for electricity generation,

energy transmission and energy distribution to industrial and

residential users.

After about ten years of scarce investment due to the liberali-

zation of the energy market, energy generation projects are

now again beginning to emerge. We have therefore been able

to conclude a number of major contracts – for instance, we

will be responsible for completely renovating control systems

at Electrabel’s W251 peaking gas turbine in Mol.

Activities in energy transmission and distribution have also

progressed according to expectations. The biggest orders

have been received from Elia, intermunicipal utilities, mana-

gers of the electricity distribution grids as well as the Associa-

tion Liégeoise d’Electricité.

In the export market, a major order was posted in the Demo-

cratic Republic of Congo, where we have concluded an inter-

national agreement to renovate the high voltage network.

Energy at Electrabel

We are developing a collective heating management solution

for apartment buildings for Electrabel. The solution involves

connecting our calorimeters to software that retrieves, vali-

dates, estimates, displays and distributes the data. The data

is sent to Electrabel via the internet, where invoices are then

directly generated for each user.

Electrabel is therefore able to make life a good deal easier for

caretakers, as the solution makes it possible to send extremely

accurate invoices directly to apartment residents. And it is also

attractive for managers of apartment buildings, as this op-

tion is far more advantageous than installing a meter in each

individual apartment.

The solution is currently installed in around 140 buildings, or

4000 apartments. Electrabel has concluded a service agree-

ment with us to be renewed each year for this project.

Energy>>> www.siemens.be/energie

24 25


Building Technologies

Building Technologies works in partnership with its custom-

ers in the field of security, fire protection, comfort and energy

management, with the aim of making buildings safer and

more efficient for their entire life cycle.

Unique offering

The offering of Siemens Building Technologies covers:

• products and management systems for heating, ventilation

and air-conditioning (HVAC),

• fire detection, fire extinguishing and gas detection,

• electronic security solutions and intruder protection,

• video monitoring,

• identification and access control.

Our biggest asset is our broad spectrum of activities. We are

the only player on the market to offer all areas of expertise

from a single source, covering the A to Z of intelligent buil-

ding systems. Thanks to the Desigo building management

system, we are the only company able to offer our customers

these integrated solutions.

We are global market leader in the field of fire protection.

Our systems are generally recognized as the most powerful

on the market. Our range of Sinteso detectors was launched

in 2006, providing unparalleled performance and the only

detectors on the market with a guarantee against false alarms.

They have already been installed for Coca Cola. We have also

installed fire protection systems in the Brussels tunnels, in the

building of the Belgian Ministry for Internal Affairs and at Gos-

selies airport.

We offer a wealth of experience in the field of security. This

market has been enjoying strong growth for a few years now.

In the professional market, we are known for implementing

complex projects – total solutions integrated into all-encom-

passing business processes, such as IT or building manage-

ment. Intelligent security systems ensure an efficient alarm

organization to manage emergency situations and reduce

the operational costs involved in monitoring and increasing

corporate security. In the field of city surveillance, we have

landed a top contract in Antwerp’s diamond quarter. We have

also provided security solutions for Fortis and the Egmont

building in Brussels among others. SNCB/NMBS opted for

Siemens to provide security installations for 50 Belgian train

stations. All in all, we will install 1500 cameras and set up a

central control room where the images from the cameras will

be analyzed using intelligent video technology.

SBT was able to further boost its security portfolio with the

international acquisition of Bewator, a key player in the

field of access control. Once the integration was finalized in

Belgium, the employees of Fire & Security Products relocated

from Harelbeke to the offices of Bewator in Ghent. Direct use

could be made of synergies in the field of sales. Thanks to

Sintony® 60, we are now for the first time able to offer a

unique intruder alarm system for the residential market. The

system combines unparalleled performance with a unique

design.

Siemens Building Technologies is also global leader in comfort

systems, offering an impressive range of products and con-

trol systems for HVAC applications (Heating, Ventilation, Air-

Conditioning) and controlling lights, blinds, etc. We help our

customers to keep their costs as low as possible. By inves-

ting in modernizing their installations, they will benefit from

a return on investment in the long run in the form of more

efficient energy consumption. We have been able to achieve

this for Kinepolis in Bruges, Ostend and Kortrijk.

We are also providing fire protection, comfort and security

systems for the new De Persgroep building in Lokeren.

Over the next few years, Siemens Building Technologies will

continue to concentrate on city surveillance and integrated

solutions and services offering added value, such as energy

optimization.

Medical Solutions provides forward-looking total solutions

for the healthcare sector. Under the motto of ‘Proven out-

comes’, it aims for its customers to benefit from proven and

sustainable progress in their clinical, operational and financial

processes. Medical Solutions regularly develops major new

innovations, with the aim of enhancing the quality of health-

care for its customers while driving down costs for patients.

In Belgium and Luxembourg, we are market leader in

medical imaging for diagnosis and therapy, with solutions in

radiology, computed tomography, angiography and magnetic

resonance. We are also present in the field of medical and

administrative ICT, optimizing workflows and making hospi-

tals and doctors’ offices more efficient.

Market conditions in fiscal 2006 were difficult. Until June,

most Belgian hospitals had frozen their investments because

of the expected liberalization in magnetic resonance. A deci-

sion by the Minister for Health – relating to the approval of

40 extra machines for specific hospitals – has been pending

since mid-2005. It was not until the last quarter of the fiscal

that investment in other areas started an upward trend, i.e. in

traditional radiology, nuclear medicine and scanners.

Thanks to our technological innovations, we managed to

attract a number of sizeable orders. The brand new Somatom

Definition – the world’s first dual source computer-assist-

ed tomography system – was installed at the Notre Dame

clinic in Tournai and St Maarten in Duffel. The system was also

ordered by five other Belgian hospitals. This helped us to fur-

ther strengthen our market position in the field of scanners.

Medical Solutions has also been active in West and Central

Africa. Business development activities have resulted in a first

order for a scanner for the central hospital in Dakar, Senegal.

Next year, the entity expects to record further growth. On

the one hand, more orders are expected due to the liberaliza-

tion of magnetic resonance and on the other, our canvassing

activities in Africa are expected to bear fruit.

Medical Solutions

>>> www.siemens.be/buildingtechnologies

>>> www.siemens.be/medical


26 27

Siemens Luxemburg

Siemens Luxembourg has been able to offer its customers

added value by making maximum use of local, regional and

international synergies.

Innovative in communication

Siemens in Luxembourg was particularly active in the area of

carrier networks. For instance, it received major orders from

the Entreprise des Postes et Télécommunications (national

post and telecommunications company), Luxembourg rail-

ways and the city of Luxembourg.

It also performed well in the field of new high-security tech-

nology. Alfa-Consult opted for Siemens within the scope of

its WiMAX activities, to implement hot spots on a wide scale.

Orders were also received to carry out a feasibility study and

implement a communication platform for the police and the

Galileo Network Management Facility.

The hosted services platform for enterprise communication

infrastructure and services was ordered by Commerzbank,

Luxembourg 2007, Arcelor-Mittal and other companies. We

have reached an agreement with DWS-Bank for a long-term

project. We have also continued our cooperation with loyal

customers such as SES and Banque Dexia-BIL.

Industrial progress

By implementing forward-looking systems and solutions,

Siemens Luxembourg has been able to offer its customers in

the energy market and in industry a means of staying ahead

of the field.

Strength in buildings systems

Despite growing competition in the building sector, Siemens

Building Technologies has managed to consolidate its posi-

tion in buildings systems on the Luxembourg market.

Projects include installing a fire extinguishing system and

central alarm management system for the Entreprise des

Postes et Télécommunications (national post and telecom-

munications company). Other major orders in the field of fire

protection were received from the Luxembourg penitentiary

center and Banque et Caisse d’Epargne de l’Etat (national bank

and savings bank). Orders were placed by LuxAirport and

Hitec Center Dexia for central buildings management.

Care and caring in the medical field

Despite the shortfall announced by the heath insurance funds,

Medical Solutions maintained its position as market leader.

The entity became the exclusive partner of the new Centre

de Réadaptation National (national rehabilitation center) for

supplying x-ray and echography systems and digitally archi-

ving x-ray images.

It also made special efforts to optimize customer relationships

with its existing customers over the last year.

Siemens VDO Automotive is active in the automotive retail

and after-sales market in over 80 countries. Its extensive port-

folio of products varies from navigation systems (hardware

and software), auto-multimedia and audio systems, compo-

nents for automotive, industrial and nautical applications, and

fleet and fuel management systems to original model-specific

replacement parts.

In 2006, Siemens VDO launched ‘Park Mate’, a parking

assistance system that helps find a suitable parking space and

parks the vehicle automatically. The system is expected to go

into mass production in 2008.

VDO Automotive

>>> www.siemens.lu

ADB is a recognized global leader in airport and heliport

ground lighting systems. For more than 55 years now, this

international player has been supplying cutting-edge techno-

logy and total solutions for airports. The company has there-

fore built up extensive knowledge of procedures relating to air

traffic movements and ground traffic management.

Among the orders received in 2006, ADB was awarded a

large-scale contract – working in a consortium with Montreal

in Spain – to fully equip Amilcar Cabral International Airport

in the Cape Verde Islands with a new lighting system. Project

handover is scheduled for September 2007.

ADB>>> www.adb-air.com

>>> www.siemensvdo.com

BSHBosch Siemens Home Appliances

Bosch Siemens Home Appliances (BSH) is a joint venture

between two major players in home appliances. BSH – number

2 in Belgium and number 3 in Europe – is one of the lead-

ing manufacturers of home appliances. Its range of products

includes washers and dryers, dishwashers, refrigerators and

freezers, ovens, small home appliances and vacuum cleaners.

The high quality products are sold all over the world under big

brand names such as Bosch, Siemens, Gaggenau and Neff.

>>> www.bsh-group.com

Fujitsu Siemens Fujitsu Siemens Computers

Fujitsu Siemens Computers came into being after the merger

of two global players - Fujitsu and Siemens - and is a clear

market leader in Europe.

In 2006, Fujitsu Siemens Computers acquired the Product Re-

lated Services business unit from Siemens Business Services.

PRS forms the heart of a new service department, called ITPS.

Fujitsu Siemens Computers is now equipped to follow the

trend in the IT products sector, offering hardware and related

services from a single source.

>>> www.fujitsu-siemens.be

krachtig

Topics & Trends

“We are pooling our innovative strength, with the focus on sustaina-

bility and better quality of life. Inherently forward looking and with a

keen eye for commercial reality.”

Francis Verheughe

Chairman of the Siemens Group Belgium - Luxembourg

The global population is continually increasing, while the birth

rate in industrial countries is slowing down. According to the

United Nations, approximately 3 billion people currently live

in cities throughout the world, making up 48% of the glo-

bal population. By 2030, this figure is expected to swell to 5

billion – a cool 60% of the global population.

As Kofi Annan, former Secretary-General of the United

Nations, said back in July 2000: the third millennium belongs

to the cities. Cities are the incubators of growth and drivers

of civilization. They are crossroads of ideas and a breeding

ground for intellect and innovation.

Growth of cities

activity report 2006

At the same time, major demographic changes are emerging.

The population in developing countries is ageing. Large fami-

lies have given way to small families who live for longer. In

other parts of the world, the population continues to grow.

Demographic change

30 31

Topics & Trends

Energy

33

activity report 2006 Topics & Trends

32

Siemens power plants provide for one fifth of the world’s

energy consumption.

Telling figures

The continuously expanding global population consumes an ever growing

chunk of our natural resources. In the future, gas, iron, copper, zinc and

even drinking water will become scarce commodities. Experts predict that

overall demand for energy will increase drastically in the course of this

century. It is estimated to rise by over 70% by 2020. Demand is growing

voraciously, especially in Asia. No-one knows today whether we will be able

to meet it. However, if we keep going at the present rate, we will exhaust

the oil reserves of OPEC countries in just 80 years.

In short, it is imperative not just that we save energy, but also that we pro-

duce new and ‘clean’ energy, to stop impacting on climate change. It is more

than likely that additional regulations will be imposed – more stringent than

the Kyoto protocol – to reduce greenhouse gases.

At any rate, environmental protection will certainly entail greater commit-

ment from us. Of the twenty most polluted cities in the world, sixteen can

be found in China. In the long term, the direct environmental damage will

cost China around 8 to 12% of its Gross National Product. The financial

markets will increasingly show greater interest in the performance and port-

folio of companies with respect to the environment.

Growing portfolio

Siemens works in anticipation of these trends. We are busy constructing natural gas plants

providing the highest output currently possible, i.e. 60%, with lower emissions. We also offer

core components for power plants based on biomass and ecological gas turbines. We further-

more provide highly effective solutions for transporting and distributing energy to industrial

and residential users.

We supply our products and services to electricity producers and industrial customers, some

of whom have their own energy generation facilities. We have seen strong growth in this

market.

In addition to the above, Siemens offers products and concepts to encourage rational ener-

gy consumption. ‘Demand Side Energy management’, for example, is a package of services

offered to industry, with the aim of continuously improving the energy efficiency of produc-

tion facilities and reducing the energy factor. We provide customers with IT systems for energy

management, energy metering and data warehousing.

With our “measure your energy efficiency” program, we can predict the energy and cost

savings that customers can generate by investing in new technology. By carrying out energy

audits, providing consulting and preparing a step-by-step plan, we enable customers to opti-

mize the energy output of their buildings and industrial plants, without jeopardizing comfort

and efficiency.

In 2006 we were certified as an official energy auditor, so we can support industrial customers

in their energy audit for the Flanders Audit Covenant. In this way, Siemens helps to meet the

Kyoto standards.

Another great example of how Siemens contributes in this respect can be seen in the coopera-

tion with Belgian bus builder Van Hool to develop an environmentally friendly and energy-

saving bus.

Other activities include home automation solutions to help consumers and companies actively

save energy. We implement alternative and renewable technologies for industrial customers,

with the aim of optimizing their consumption of raw materials and reducing greenhouse gas

emissions. Our buildings and systems have a positive impact on the environment, but also on

our customers’ business results, thanks to reduced operational costs.


34

Energy in 2006

Topics & Trends

Environmentally friendly and energy-saving buses

Van Hool developed a bus that is powered by fuel cells in

which hydrogen gas is converted into electricity. The only

residual product is pure water. The energy released during

braking is also buffered highly efficiently in batteries.

Siemens was responsible for supplying the electrical drives

and the energy management system. The result is an

extremely environmentally friendly and energy-saving

vehicle.

The need for mobility and for environmental protection do

not always go hand in hand. By pooling their technologi-

cal expertise, Van Hool and Siemens were together able to

provide a solution to this growing problem.

Certified as an energy auditorIn May 2006, Siemens was officially certified as an energy

auditor for the Flanders Audit Covenant. This is an agreement

between companies and the Flemish government to encou-

rage midsized companies that are intensive consumers of

energy to analyze and rationalize their energy consumption.

In this way they will be able to meet the stringent Kyoto stan-

dards. Signing the Audit Covenant is not obligatory. In return

for producing an energy plan and implementing the appro-

priate measures, companies receive an energy tax rebate.

We were prompted to apply for certification after our con-

tract with the Alro group, involving the preparation of an

energy plan for their three sites in accordance with the Audit

Covenant for Flanders. Alro is active in the automotive sector

for painting and powder-painting components for cars and

trucks.

An energy plan was also prepared for PBI Fruit Juice Company

(Looza Tropicana) under the Audit Covenant. Other referen-

ces in the field of energy management include Felix-Schoe-

ller (photographic and decorative paper), Technocell (deco-

rative paper), Koehler Décor (decorative paper), Alpro (soya

products), Mondi Packaging (packaging paper) and Smurfit

Kappa (cardboard).

Innovative project for Foxfire in the Netherlands

In 2006, an installation was commissioned for Foxfire in

Groningen in the Netherlands that recycles paper waste into

a secondary fuel. Uses for this fuel include selling it to the

cement industry.

Siemens Belgium not only supplied the technology for this

project, but was also responsible for project management,

including purchasing all machines. If any faults occur, the

installation can be monitored and adjusted remotely.

Foxfire plans to sell the technology throughout Europe, with

Siemens Belgium as its partner for the technical equipment.

Given the trend toward green energy, these plans have a very

good chance of succeeding...

Renovation of high-voltage network in the CongoLast year we entered into an international agreement to reno-

vate the high-voltage network in the Democratic Republic of

Congo. The project goes under the name of PMURR 1 (mul-

tisectoral rehabilitation and reconstruction program) – it is

financed by the World Bank.

We are responsible for supplying power cutout switches, pro-

tective relays and communications systems for high-voltage

lines, monitoring their installation and providing support

for commissioning at the Inga, Kwilu, Kimwenza, Lingwala,

Liminga and Zongo stations. Commissioning will take place

between mid-2007 and mid-2008.

Water

First order for Siemens Water Technology in Belgium

Chemicals giant Kaneka Belgium, a subsidiary of the Japa-

nese Kaneka Corporation, placed an order with us for instal-

ling membrane technology to purify canal water, in turn pro-

ducing high-quality process water. This process water is then

used in the chemical processes involved in the production of

plastics. Kaneka produces impact modifiers for PVC, polyolefin

rubber and basic polymer for elastic sealants and adhesives.

The company previously used well water to produce process

and demineralized water. The purified water obtained from

this generated a considerable amount of waste water. Instead

of pumping up even more well water – in turn drawing further

on the groundwater table – and increasing the capacity of the

purification system, Kaneka opted for the Siemens solution.

The company now uses canal water that is passed through a

microfiltration and reverse osmosis system, at a rate of 45 m3

per hour. The new system guarantees a constant production

of process water with a steady quality, even if the raw water

has high peaks or contains a lot of solid substances.

Al Hunayy handover

In 2003, we received a huge order from Saudi Arabia. The aim

of the project was to equip the wells of Al Hunayy with electri-

cal and automated systems, a water purification plant and a

twin transmission pipeline to the capital city of Riyadh. This

project was completed and handed over in 2006.

As a holder of 1500 patents in water technology, Siemens is the

world’s most innovative company in this field.

Telling figuresJust 0.03% of water on our planet is suitable for consumption. As the population of the world

continues to grow, a third will face a shortage of drinking water by 2025. This figure may

even rise to 40% of the world’s population by 2050.

As consumers, we will therefore have to be more careful with how we use water. And indus-

try will also have to handle water differently. The cost of water will unquestionably go up in

the next few years; the competitiveness of our industry will depend on it in the future, just

as it does on oil products now.

Living portfolioSiemens is able to offer its customers a comprehensive portfolio covering the entire water

cycle, from treating unpurified water to purifying waste water.

Furthermore, in 2006, Siemens Belgium-Luxembourg was appointed as a center of com-

petence in the field of water supply systems, more specifically water transfer systems and

pumping stations. We were internationally selected as one of the five countries to develop a

strategy in this market. We are therefore taking a significant step toward achieving our ambi-

tion of playing an important role in this field.

We were appointed as a center of competence thanks to our decades of experience of wor-

king with water transfer systems in North Africa and the Middle East. Siemens BeLux has

built up a leading position in this field. In concrete terms, we offer considerable expertise in

turnkey installations comprising more than one pumping station, water treatment installa-

tions, a mechanical part, operating and monitoring systems and fully automated controls for

complex transfer systems.

We also offer a comprehensive range of products and services. In 2004, Siemens acquired

USFilter at international level, the North American market leader in services and products for

water and waste water treatment.

Based on our wide-ranging portfolio combined with our extensive know-how, we aim to

further expand our activities in water technology over the next few years.

37


36

2006: A first in water technology

Security

Secure freight corridors at ports

In 2006, Siemens entered into cooperation with Hesse-Noord

Natie, a subsidiary of leading port operator PSA, based in Sin-

gapore. The aim is to secure containers that are processed via

PSA terminals in the port of Antwerp. The aim of the coopera-

tion is to create secure freight corridors between major ports,

based on the CommerceGuard container protection solution.

This solution, based on RFID, enables checks to be made on

the opening of containers during transportation and provides

access to status data for importers, shippers, logistics ser-

vice-providers and government officials around the world. It

is currently being developed by CommerceGuard AB, a joint

venture between Siemens, General Electric and Mitsubishi.

This project will make Antwerp the very first European port in

the global network of secure freight corridors. The system will

facilitate and speed up the transit of freight traffic in ports,

creating RFID highways around the world between the main

ports and terminals.

Stations intelligently protected

Following a tragic incident early in 2006, the SNCB/NMBS

decided to expedite its investment program for safety and

security.

In an initial phase, Siemens will equip 50 main train stations

with intelligent monitoring cameras. These cameras will auto-

matically generate alarms in the central control room, based

on image analysis.

Siemens is responsible for supplying and commissioning

around 1500 security cameras. We will equip the control

room with a Desigo management system integrating all

security technologies and a Barco videowall on which to

project the images.

Reinforcing the Belgian Federal Agen-cy for the Safety of the Food Chain (FAVV)

The FAVV is in charge of food safety throughout the entire

food chain. It carries out inspections of foodstuffs and raw

materials and is responsible for producing traceability and

identification systems. The FAVV needed a new IT system to

manage, dispatch and implement all analyses. This system

comprises a Laboratory Information Management System for

the FAVV’s five own labs as well as an inspection LabNet appli-

cation. This enables the FAVV to manage all analyses carried

out internally and outsourced externally. Apart from the 150

users within the FAVV, 20 or so external labs will also be able

to enter and retrieve data via the internet.

After a European invitation to tender, the contract was awar-

ded to the specialist Siemens department with its solution

based on Simatic IT Unilab.

Royal premises protected

At the end of 2005, Siemens was contracted to modernize

the security infrastructure of the royal premises. The project

involves constructing a secure perimeter fence covering a

number of kilometers together with video monitoring and a

management system. The contract will run for ten years.

City surveillance in the diamond quarter

Various Siemens entities joined forces in 2006 to provide the

diamond quarter in Antwerp with an integrated monitoring

system.

This prestigious project is a major calling card in the growing

market for city surveillance.

One in four commercial buildings in Europe is fitted with Siemens fire

protection systems.

Telling figuresNowadays, around three billion people, or 48% of the world’s population, live in large cities.

One in three lives in a slum – and in developing areas this figure is considerably higher. The

growing social divide is a breeding ground for social unrest. And as cities grow, the situation

will worsen. So guaranteeing public safety is a top priority.

But safety and security are not just important in the context of the growth of cities. There

is a prevailing feeling of unease not helped by the constant reporting in the media of crises

and problems.

The speed of change also entails a feeling of insecurity. New forms of electronic criminality,

targeting data and information, represent a significant threat for the global economy. There

is a growing need for protection and security.

Portfolio aimed at security and comfortThe growing need for protection could potentially lead to restrictive measures, for instance

rules and regulations that infringe on our privacy, curb our options or scope to maneuver and

significantly slow down our speed of innovation. Siemens’ technologies increase the security

of goods, data and capital. But that’s not all. Our solutions ensure security, without impin-

ging on our basic freedoms. So security becomes an asset, not a burden.

We provide networks and cutting-edge smartcard technologies offering access with the

utmost speed, ease and security. We develop intelligent and integrated systems protect-

ing buildings, infrastructures and surrounding areas. We offer national and non-national

operators solutions to protect their networks against hackers, to prevent important data from

being stolen or the network from being sabotaged. We offer industrial customers forward-

looking automation solutions based on the ‘Safety Integrated’ concept.

39

Security in 2006


38


Ultra safe and autonomous traveling cranes at Arcelor Ghent

Safety is a number one priority for Arcelor. Especially in the

manipulation of heavy steel rolls, which play a major role in

the supply chain in the company’s cold rolling department.

Steel rolls are manipulated using powerful traveling cranes.

One steel roll easily weighs 30 tons, with a temperature of

500°C and razor sharp edges. A slight error could lead to

serious consequences. The challenge was to convert a manu-

ally operated crane dating back to the 1970s into an ultra safe

and fully automatic model. Arcelor opted for the Siemens

solution of introducing PROFINET as industrial communica-

tion technology and safety-relevant programmable logic

controllers (PLC). The deciding factor in favor of Siemens was

the option to integrate various technological disciplines such

as wireless networks and safety systems.

This means that Arcelor can benefit from considerable cost

savings, enormous technical flexibility, excellent availability

of the system and maximum safety.

Greater fire protection in Brusselstunnels

Each day, more than 50,000 vehicles drive through some of

the Brussels tunnels. The total length of the tunnels around

the Brussels inner ring comes to at least 21 kilometers –

reason enough for the Brussels regional government to

invest in modernizing the fire protection systems in the

tunnels around the inner ring.

An autonomous fire detection system is installed in each tun-

nel. Burning vehicles will be detected using thermal detec-

tion via fiberoptic cables. All tunnels will be monitored from a

central control room, which is linked to the ventilation system

and security cameras, creating an integrated security system

that will enable the fire department to intervene more quickly

and efficiently.

Anti-fraud system

Siemens has signed a major contract with the Federal Public

Service Finance. We will be implementing the first two phases

of the extensive datawarehousing and datamining project,

with the aim of detecting fraud and analyzing risk. By gather-

ing data from various sources and databases in a central data-

warehouse, officials can compare, check and consolidate data

on aspects relating to tax. This will make the Belgian Federal

Public Service Finance one of the most advanced government

services in Europe.

Hainault protected against flooding

Flooding is becoming an increasingly familiar phenomenon,

what with global warming, our assorted sewer systems and

the continuing spread of asphalt. Siemens has developed

systems that automatically warn people when a specific wa-

ter level has been reached.

In 2006, the province of Hainault opted for Siemens’ inte-

grated automatic protection and alarm solution for floo-

ding. The system detects a potential risk of high water and/or

flooding via sensors that are installed in the province’s water

courses and are connected to a central system. Based on the

measurements recorded, the system determines whether

there is a risk of flooding. If such a risk is detected, two alarm

systems are activated:

- a protected, closed system to warn the civil defense, fire

department and municipal council;

- a public system that sends a warning via SMS to citizens

within the area in question who have already previously

registered on the authority’s portal.

40

Security in 2006

Topics & Trends

Healthcare

Sophisticated computer-assisted tomography system At the end of 2005, Siemens unveiled the world’s most

sophisticated computer-assisted tomography system. This

first dual source CT heralded a new age in medical imaging

– Siemens has stretched the technical and clinical limits of

tomography with this innovation, the Somatom Definition.

The system enables users to scan any beating heart at any

heart rate, providing complete cardiac details with up to 50

percent less exposure to radiation than with traditional CT

scans.

The Somatom Definition will be able to scan patients with

heart problems without requiring the use of beta blockers,

which patients used to be given to slow down their heart

rates. The system can be used to make faster and earlier

diagnoses for patients who need acute care. The CT is there-

fore ideal for one-stop diagnoses, for example if patients have

had a suspected stroke or are in acute pain.

Leading healthcare institutions around the world responded

with alacrity to the launch of the Somatom Definition, with

orders coming in from the university of Erlangen, the Mayo

Clinic (Rochester, Minnesota), the Cleveland Clinic Founda-

tion (Ohio) and the medical center of the university of New

York among others. The first order for the system in Belgium

was received from the Notre Dame clinic in Tournai and

St Maarten in Duffel. The Somatom Definition is being

commissioned in five other Belgian hospitals at the end of

2006 and beginning of 2007.

Home automation: intelligent help at homeSiemens’ smart home automation solutions can offer comfort

and security to people with physical disabilities or the elderly, so

that they can continue to live independently for longer.

Lighting, blinds and shutters, heating, air-conditioning, access

control, security and management of home appliances – all

these can be operated and managed with just one integrated

electronic system.

For healthy people, home automation means greater ease and

comfort. For people with physical disabilities or the elderly, it

can be the solution allowing them to stay living at home for

longer.

Our home automation solutions are for example available with

voice recognition. Users can give a voice command to open or

close blinds and doors, call lifts or switch on lights. In service

flats for the elderly, movement detectors can be installed to

turn a light on if residents get out of bed at night. Or a central

button can be fitted, to turn off all electrical devices.

It is even possible to install detectors that route a signal through

to the home care team or to the resident’s children if no move-

ment has been detected in the flat for some time.

Bedside terminalsIn the course of 2006, Siemens installed the first bedside ter-

minals at the regional hospital of Heilig Hart Tienen in the

newly reopened and revamped maternity ward. These termi-

nals make patients’ stay in hospital a far more pleasant expe-

rience. They can use these mobile terminals to not just watch

digital TV or surf the net – they can connect up their own

games or keep an eye on their newborn baby in neonatal care,

via a webcam.

The terminals also make it easier for patients to stay in contact

with the outside world, as they can use them to send e-mails

and make VoIP calls.

Siemens is one of the largest suppliers to the healthcare sector world-

wide. Our innovations improve workflow and increase efficiency in

hospitals and doctors’ offices.

Telling figuresThe population in industrialized countries is getting older. In 2050, the number of people

over the age of 60 will be equal to the number of people under 15 for the first time in his-

tory.

So it stands to reason that the number of illnesses relating to old age is increasing. Health-

care costs per capita are going up, while the number of young people – who have to finance

these healthcare costs as well as pensions – is going down.

In developing countries, infectious diseases have huge consequences. With increasing glo-

balization, growing trade, greater mobility, climate change and resistance to medicines, the

risks for the entire population of the world are also increasing.

Healthy portfolioActivity in the healthcare sector in the western and southern hemispheres will become in-

creasingly intense. This will ramp up pressure on costs, while calling for a more targeted

focus on efficiency. The healthcare sector can only remain affordable with state-of-the-art

technology ensuring maximum speed and precision of functionality.

At the same time, extensive databases will increase in importance, enabling structured data

storage and rapid diagnosis. Siemens is adopting a two-pronged policy, offering advanced

medical solutions while developing integrated medical ICT and networked medical and ad-

ministrative processes. This will enable us to significantly improve the quality, efficiency and

productivity of healthcare, while driving down costs.

43


42

Taking the temperature of 2006

Mobility

Infrabel places huge order for safer rail network

Infrabel – the body that manages the Belgian rail network infra-

structure – wants to further systematically enhance the safety

of the Belgian rail network over the next few years. At the same

time, it intends to comply with the requirements for European

freight transportation throughout its main routes. In 2006,

Siemens clearly showed its support by helping Infrabel imple-

ment these dual objectives. The Belgian rail network includes a

total of 13,000 signals. Over the next four years, we will equip

the first 4000 signals with ETCS equipment. The European Train

Control System ensures that trains automatically come to a stop

before a red light, thus reducing the chance of human error to

zero.

We will also equip the Belgian section of the European Corridor

C – the Antwerp/Basel-Lyons line – with ETCS. Uniform European

train protection in this way will not only ensure safety but also

guarantee the interoperability of freight transportation between

various countries. This means that non-Belgian transport com-

panies will be able to run their own locomotives on the Belgian

network.

Infrabel awarded us the contract for supplying, configuring,

installing and maintaining the ETCS system.

Easing life the mobile way In March, the Belgian interdisciplinary institute for broadband

technology launched a trial to ascertain the level of accept-

ance of mobile television in Belgium, using Siemens’ DVB-H

test system (Digital Video Broadcast Handheld). The system

transmits live television and radio programs, as well as spe-

cially prepared video streams. Analysts predict that around

125 million people will be watching mobile TV by 2010.

Siemens has already recorded promising test results in Ger-

many and the Czech Republic.

De Lijn takes a leap forward in technology

De Lijn has recorded growing success in East Flanders. The

number of trams running along the streets is on the up and up.

So it inevitably became necessary to upgrade the traction net-

work. De Lijn also took the opportunity to equip the traction net-

work with Siemens’ Open Transport Network (OTN).

This fiberoptic network will be installed for ultra-fast data com-

munication between the traction stations and central dispat-

ching. But the system also offers other advantages, such as

camera surveillance with recording for specific substations or

locations. Forty-two cameras that record local images will transmit

video data via the OTN to the dispatching room. Various Siemens

departments joined forces to implement this project. And De Lijn

in East Flanders has clearly leapt forward as a result. It is currently

the only tram and bus transportation company in Belgium with

an extensive fiberoptic backbone.

Mobility improved for Federal Public Service Finance

At the end of the fiscal year, we concluded an agreement with

the Federal Public Service Finance to implement the MODA

project. The aim is to develop and implement a new ICT solution

which can be used to optimize inspection processes via mobile

communication. Around 600 customs officers – equipped with a

mobile office and barcode reader – will be able to communicate

remotely with the databases and central applications. This means

that they will have access to up-to-date information in real time

while they are carrying out their inspections. Siemens will be

responsible for an automatic tracking system via GPS, secure

access to the systems, applications for planning and reporting as

well as the necessary hardware in the vehicles.

The system is scheduled to be tested in February 2007.

Siemens technology can be found in one in every two cars around the

world.

Telling figures

With the rise in the world’s population and growing globalization, road traffic is steadily increasing

by 2 to 3% a year. And this means that the 500 million vehicles currently on the roads will turn

into 2.5 billion by 2030.

Air traffic is growing at an even faster rate, by 6%. The volume of global freight transportation is

also rising rapidly.

And in the end, this makes us less and less mobile – our cities are grinding to a standstill. The only

way of relieving the situation is by integrating various ecologically sound transportation systems,

for individuals, groups of individuals and freight.

Growing portfolio

Siemens has considerable expertise in all areas of mobility. For instance, we are involved in opti-

mizing existing means of transport. We develop advanced rail systems – after all, mass transit is

a safe and cost-effective way of traveling short and long distances, while taking the burden off

road traffic as well as the environment. Our portfolio covers signaling systems for mass transit,

as well as electrification systems, rolling stock, air-conditioning and related services. Our logistics

solutions ensure the flexible and cost-effective transportation of goods throughout the world.

We provide a diversity of solutions for better road transportation, such as traffic signaling, parking

and traffic telematics.

Siemens has also spread its attention to port and airport traffic as well as inland shipping, both in

terms of environmental protection and traffic solutions.

We also develop virtual mobility systems, such as video conferencing systems and OpenScape

software for virtual teamwork. These types of solutions make us virtually mobile – thanks to

real-time communication and shared access to the same information – and they also reduce the

amount we need to travel.

45


44

Dynamic 2006


Front Parking 3 at Zaventem equipped with

dynamic parking lot guidance system

Interparking, the airport parking lot operator at Zaventem,

ordered a PIMSpark solution for Front Parking 3, which has 2400

spaces. As soon as drivers enter the parking lot, this solution

guides them to the nearest free parking space.

Parking lot operators such as Interparking want to offer pas-

sengers a quality parking service and drivers want to be guided

toward a space as quickly and efficiently as possible. It is very

important to the operator for vehicles to drive around the parking

lots as little as possible so that exhaust gas emissions are kept to

a minimum. Too many unused spaces and poorly parked vehicles

prevent parking lots from being managed optimally. With PIM-

Spark, we are able to meet these requirements.

Sending calling credit to family in rural areas

For many years now, Siemens has been the preferred partner of

Malitel, market leader in mobile communication in Mali. To stand

out in this highly competitive field, the operator has invested in

various innovative services and last year was no exception. One

such service is Virtual Money Transfer, specially developed by

Siemens Belgium for African operators. It enables subscribers to

give calling credit to other users simply by sending an SMS mes-

sage. In this way, people working in the city can continue to help

their family in rural areas, where it is very difficult to get hold of

phone cards.

Park Mate

Last fiscal, Siemens VDO launched Park Mate, a parking assis-

tance system that not only finds somewhere suitable to park,

but also steers the car into the space. The system uses ultrasonic

sensors integrated into the sides of the car. It has generated

considerable interest from drivers and car manufacturers alike.

The system is expected to be in mass production in 2008.

Park Mate is just one element of pro.pilot, an ergonomic package

of driver assistance systems. A night vision system, a system that

warns drivers if they are about to unintentionally leave a lane and

an automated system for driving in congested traffic are ready

for mass production.

46

Dynamic 2006

Topics & Trends

The Siemens group Belgium-Luxembourg

Siemens nv

Energy • Industry • Transportation • Communications

Building Technologies • Medical Solutions

Telephone: +32 (0)2-536 21 11

www.siemens.be • e-mail: [email protected]

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• SIEMENS NAMUR

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Affiliated companies(100% Siemens Groep)

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Products, systems and solutions for airfields

Telephone: +32 (0)2-722 17 11

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Automotive products, systems and solutions

Telephone: +32 (0)2-716 01 40

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For an overview of all Siemens establishments, please visit our

website at www.siemens.be

Board of DirectorsChief Executive Officer: Francis Verheughe

Managing Director: Kathleen Wantz-O’Rourke

Directors:

Hendrik De Nolf

Manfred Dönz

Jean-Pierre Laurent Josi

Jacques Saverys

Nicolas Schaeffer

Executive CommitteeChief Executive Officer: Francis Verheughe

Chief Financial Officer: Kathleen Wantz-O’Rourke

Executive Vice President: Roger Van Steenbergen

“Inauguration of new head office in Anderlecht, May 10, 2006”

[email protected]

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