siemens ar2010 at a glance

8/7/2019 Siemens Ar2010 at a Glance

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Siemens at a glance

www.siemens.com


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Key figures

Financial performance measures (in millions of euros, unless otherwise indicated) FY 2010 FY 2009

New orders (continuing operations) 81,163 78,991

Revenue (continuing operations) 75,978 76,651Pro t Total Sectors 7,789 7,466

Income from continuing operations 4,112 2,457

Return on capital employed (ROCE) (continuing operations) 1 10.4% 6.1%

Capital structure 2 0.08 0.31

Free cash ow (continuing operations) 7,111 3,786

Dividend per share (in euros) 2.70 5 1.60

Employees (continuing operations) 3

Total employees worldwide (in thousands) 3 405 405

Employees in Germany (in thousands) 3 128 128

Research and development

R&D employees (in thousands) 4 30.1 31.8

R&D expenditures (in millions of euros) 3,846 3,900

Percentage of total revenue invested in R&D 5.1% 5.1%

Major R&D facilities 178 176

Siemens Environmental Portfolio

Revenue from Environmental Portfolio (in billions of euros) 27.6 26.8

Annual reduction of greenhouse gas emissions due to products and solutions fromEnvironmental Portfolio, compared to the start of scal 2002 (in millions of tons of CO 2) 267 214

Some of the figures mentioned above are or may be non-GAAP financial measures. For further information please refer to www.siemens.com/nonGAAP .FY 1 : including (3.6) pp related to impairment charges of 1. 4 billion (pre-tax) related to Diagnostics and charges of 46 million (pre-tax) related to thestrategic reorientation of Siemens IT Solutions and Services; FY : including (4.6) pp related to impairment charges of 1.85 billion (pre-tax) at NSNAdjusted industrial net debt / adjusted EBITDA (continuing operations)As of September 3 , 20 0 and 2009Average number of employees in fiscal year

5 Proposal to the Annual Shareholders Meeting


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Strategy

One Siemens is the framework for our companys sustainabledevelopment and capital-ef cient growth. Within this frame-work, focus areas specify the elds well concentrate on in the

years ahead. Our overriding aim is to continuously improveour performance vis--vis the markets and our competitorswhile increasing our long-term value.

We want to fully unleash the power of our integrated technol-ogy company for example, by constantly enlarging our En-vironmental Portfolio and steadily increasing the pro t it gen-erates, by continuously expanding our highly diversi edservice business and by fur ther strengthening our position in

the booming markets of the emerging countries.

All these strategic factors are combined in our entrepreneurialvision. As a pioneer in electrical engineering, we were a majorforce in industrialization. It was our pioneering spirit thatmade us the global powerhouse we are today. And now weremoving ahead to break new ground in energy ef ciency, in-dustrial productivity, affordable and personalized healthcare,and intelligent infrastructure solutions future-oriented

elds in which well also play a pioneering role.

Further information is available on our company website atwww.siemens.com/strategy .

Responsible, excellent and innovative these are the valuesthat de ne who we are and what we do. Sustainability in thebroad sense support for long-term environmental, econom-

ic and social progress is the guiding principle of all ouractions.

Our company is providing the world with the solutions itneeds to master the challenges of demographic change, ur-banization, climate change and globalization. To leverage thepotential of these megatrends in both traditional and newmarkets, weve grouped our activities into three Sectors: In-dustry, Energy and Healthcare.

Were in an excellent competitive position. Many of our busi-nesses are already market and technology leaders. But wedont just want to maintain our position; we want to expandit. Thats why were:

> focusing on innovation- and technology-driven growthmarkets

> strengthening our global presence to be a strong local part-

ner to our customers around the world and> teaming up to use the power of Siemens.


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Siemens stock

Siemens stock performed exceptionally well in scal 2010,closing at 77.4 per share on September 0, 20 0. This wasan increase of 22.4 percent over the closing price a year ear-

lier. For shareholders who reinvested their dividends, the gainamounted to 2 .4 percent ( scal 2009: . percent). In scal20 0, the Siemens share substantially outperformed the Ger-man and international stock markets, whose leading indices,the DAX30 and MSCI World, appreciated in the same period

by 9.8 percent and 6.8 percent, respectively. At the AnnualShareholders Meeting, the Managing Board and the Super-visory Board will propose a dividend payment of 2.70, a sub-

stantial increase of 1.10 per share. Af ter three years in whichour dividend remained stable despite a weak economic envi-ronment, this proposal re ects our improved earnings posi-tion in scal 20 0.

Stock market information(in euros, unless otherwise indicated)

FY 2010 1 FY 2009 1

Stock price range (Xetra closing prices)

High 79.37 66.45Low 60.20 35.52Year-end 77.43 63.28Number of shares (year-end, in millions) 914 914Market capitalization (in millions of euros) 2 67,351 54,827Earnings per share continuing operations 4.54 2.60Earnings per share 3 4.49 2.65Dividend 2.70 1.60

Fiscal year from October 1 to September 3On the basis of outstanding sharesOn the basis of continuing and discontinued operationsTo be proposed to the Annual Shareholders Meeting

Share price

in % Sept. 0, 2009 Sept. 0, 20 0

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Siemens DAX MSCI World

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Therein Germany

Worldwideshare

Revenue (in millions of euros) 1 11,432 15%

Employees (in thousands)2

128 32%Major R&D facilities 3 49 28%

Asia, Australia

Worldwideshare

Revenue (in millions of euros) 1 13,909 18%

Employees (in thousands)2

74 18%Major R&D facilities 3 26 15%

By customer location As of September 0, 20 0 15 employees or more

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Innovations are one of the most important pillars of our busi-ness success. In scal 2010, we invested 3.846 billion inresearch and development, maintaining our R&D outlays at

a high level despite the nancial and economic crisis. Wedeveloped new key technologies and brought cutting-edgeinnovations to market readiness. Breakthroughs included thecommissioning in China of the worlds rst high-voltagedirect-current transmission system to transport electricity ata voltage of 800 kilovolts, and the market launch of the latestgeneration of gas turbines in the U.S. When operated ina combined cycle with steam turbines, our new gas turbinesachieve a record-breaking ef ciency of over 60 percent. By

comparison, the average ef ciency of combined-cycle powerplants in the U.S. is currently less than 40 percent.

These are just two examples of successful innovations fromour Environmental Portfolio. Other ecofriendly technologiesdeveloped by our researchers include new solutions for smartgrids, electric mobility (from drives to rapid battery rechargestations), organic light-emitting diodes, solar energy, CO 2 separation for power plants, and power storage units for

renewable energies. R&D for our Environmental Portfoliofocuses primarily on increasing the ef ciency of power gen-eration (whether renewable or conventional), low-loss power

transmission, the expansion of smart grids, and ef cientenergy utilization in transportation, industry, building tech-nology and lighting. Our researchers are also working on thefurther development of water and air pollution controls anddrinking water treatment systems that use, for example, newmembrane technologies.

In scal 2010, products and solutions from our EnvironmentalPortfolio generated revenue of some 28 billion an increase

over scal 2009 and cut our customers CO 2 emissions by267 million tons, an amount equal to the total annual CO 2 emissions of New York, Tokyo, London, Hong Kong, Berlinand Rome.

Research and development

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Patents and research expendituresOur patent portfolio comprises more than 57,000 patentsworldwide. In scal 2010, we were No. 3 in Germany, No. 2

in Europe and No. 13 in the U.S. in patent applications. In thesame period, our employees submitted around 8,800 inven-tion reports about 40 per workday.

Employees and partnershipsSiemens has roughly 30,100 R&D employees, of whom12,800 are in Germany and 17,300 in other countries such asthe U.S., China, Austria, India, Slovakia, Switzerland, the UK,Croatia, Sweden, Denmark, the Czech Republic and France.

To remain at the cutting edge of innovation, we participateevery year in over 1,000 research partnerships with univer-sities, research institutes and industrial partners around theworld.

Corporate Technology (CT), our central research unit, works hand-in-hand with the R&D teams at our Sectors andDivisions. With major research centers in Germany, the U.S.,Austria, Slovakia, Russia, India, China, Japan and Singapore,

CT employs over 5,000 people in a worldwide network ofinnovation.

Corporate Technology conducts research in some 50 technol-ogy elds, including materials and microsystems, productionprocesses, security, software and engineering, energy sys-

tems and sensors. The unit also develops new solutions forautomation, healthcare IT systems and imaging processes,information and communications technologies, and the ex-traction and processing of raw materials. Reference projectsintended to generate new business opportunities in areas ofmajor strategic importance such as electric mobility andsmart grids round out CTs technology portfolio. In addition,both CT and the Sectors are developing so-called SMART(simplicity, maintenance-friendly, affordable, reliable and

timely-to-market) solutions, some of which are already inuse. Geared speci cally to local requirements, these solutions for example, for healthcare applications and decentralizedpower generation are designed to make new technologiescompetitive in low-price markets.

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Siemens innovations Highlights

1. Worlds most powerful and ecofriendly gas turbinesIn the U.S., weve successfully launched our latest generationof gas turbines, which achieve a record-setting ef ciency of

slightly over 60 percent when coupled with steam turbines.This new technology will enable Florida Power & Light to re-duce fuel consumption at two of its power plants by one-thirdand cut CO 2 emissions to less than half their current levels.The U.S. utility will also save about $1 billion in operating,main tenance and investment costs over the turbines com-plete lifecycle.

2. Wind turbines from a single cast

Having installed over 9,000 wind turbines worldwide, werethe market leader in offshore wind power. With a total outputof over , 00 megawatts of which ,400 are generated at

6 offshore projects these turbines are reducing CO 2 emis-sions by a total of 27 million tons a year. Produced in a singlecast and without seams using a patented integral technique,the turbines blades can withstand wind and weather formore than 20 years, even when located on the high seas.

3. Solar power plantsWere a single-source supplier of all key components for para-bolic trough power plant construction and the global market

leader in steam turbine generators for solar-thermal powerplants. Our offerings include innovative, tried-and-testedlarge-scale photovoltaic systems as well as services, monitor-ing and maintenance for solar power systems.

4. Electricity highwaysThe worlds rst high-voltage direct-current (HVDC) transmis-sion system to transport electricity at a voltage of 800 kilovoltsis now linking hydropower plants in Chinas Yunnan Province

with the megacities of the Pearl River Delta. HVDC technologyensures that transmission losses along the more than 1,400-ki-lometer route are extremely low in fact, about 50 percentlower than those of comparable alternating-current systems.

. Worlds brightest light-emitting diodesOSRAMs light-emitting diodes (LEDs) are among the worldsbrightest and most ef cient, slashing energy consumptionmore than 80 percent compared to conventional light bulbs

and lasting between 20 and 50 times longer. LEDs are alreadyused in a wide array of applications in everything from au-tomobile headlights to building illumination. For example,more than 2,000 high-performance OSRAM LEDs now lightup the arch spanning the new stadium in Durban, SouthAfrica. OSRAM is also a technology leader in innovative or-ganic light-emitting diodes (OLEDs) surface-emitting lumi-naires that are extremely thin and ef cient.


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. Building systems with guaranteed energy savingsBuildings consume about 40 percent of the worlds energyand due to their heat and power requirements account for

some 2 percent of all greenhouse gas emissions. But signi -cant savings can be achieved through targeted measures.Thats why weve introduced energy-saving performance con-tracting (ESPC). Combining consulting, installation and -nancing, ESPC requires no upfront investments: costs areamortized within a contractually speci ed time throughenergy savings. To date, weve implemented 1,900 ESPCprojects worldwide, generating guaranteed energy savingsof 2 billion.

. Maximum rail ef ciencyReaching speeds of up to 350 kilometers an hour, SiemensVelaro is one of the worlds fastest and most ef cient trains inseries production, consuming only about 0.33 liters of fuelper 00 passenger-kilometers. Velaro trains are already oper-ating successfully in China, Russia and Spain. In Germany,well be delivering Velaro D supertrains to rail operatorDeutsche Bahn at the end of 20 .

. Filling up with electricityElectric cars powered from renewable energy sources are theworlds most ecofriendly means of transport. When their bat-

teries are used as temporary energy storage devices, they alsohelp stabilize power grids. Were developing solutions forelectric vehicles for example, electric drives as well as forthe associated power infrastructures, including everythingfrom rapid battery recharge systems and vehicle-to-grid com-munications technologies to the smart grids themselves.

. Ultrasound breast scannerThe Acuson S2000 Automated Breast Volume Scanner (ABVS)

an advanced ultrasound system that generates and analyzescomplete D images of the breast is ideally suited for imag-ing patients with dense breast tissue. Over 100 Acuson S2000ABVS systems have already been installed in hospitals anddoctors of ces worldwide.

10. Robotic technology for medical imagingOur Artis zeego family of angiography imaging systems em-ploys robotic technology to enhance imaging capabilities

through virtually unrestricted C-arm positioning, making iteasier than ever to acquire multi-angle images of tumors andblood vessels, for example.


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Industry Sector

Our Industry Sector is one of the worlds leading suppliers of manu facturing, transportation, building and lighting systems. By continuously optimizing productivity, efficiency and flexibility, wereincreasing the economic and environmental competitiveness of ourcustomers in the industry and infrastructure segments.Further information is available at www.siemens.com/industry.

Key figures for fiscal 2010

Total revenue (in millions of euros) 34,869

New orders (in millions of euros) 34,908

Pro t (in millions of euros) 3,478Pro t margin 10.0%

Employees (in thousands) 1 204

As of September 0, 20 0


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Industry AutomationFast, exible, ef cient: we offer our customers a unique com-bination of automation technologies and industrial software

spanning the entire value chain from product design to ser-vice. Our portfolio enables industry customers to slash time-to-market by up to 0 percent.www.siemens.com/ar/industry-automation

Drive TechnologiesProductivity, energy ef ciency and reliability are our custom-ers key requirements. And as the worlds No. 1 supplier ofproducts, end-to-end systems, applications and services for

complete power trains and for all industry segments, we havethe solutions they need.www.siemens.com/ar/drive-technologies

Building TechnologiesWere the preferred partner when it comes to maximizing en-ergy ef ciency in buildings and protecting people and infra-structures. Our portfolio comprises products, solutions andservices for building automation, re safety, security and

power distribution.www.siemens.com/ar/building-technologies

OSRAMWere an expert partner offering customers energy-savinglighting solutions for all areas of modern life. Our portfolio

includes not only lamps and optoelectronic semiconductorlight sources like light-emitting diodes (LEDs), LED systemsand LED luminaires but also electronic control gear and lightmanagement systems.www.siemens.com/ar/osram

Industry SolutionsWere a leading provider of solutions and services for indus-trial plants and infrastructure systems, helping customers

increase their competitiveness across entire lifecycles andoffering attractive solutions in the areas of energy ef ciency,pollution control and water management.www.siemens.com/ar/industry-solutions

MobilityBy networking transportation systems more effectively, ourintegrated solutions for intermodal transport, traf c manage-ment, postal automation and airport logistics are making the

movement of people and goods more ef cient and ecofriendly.www.siemens.com/ar/mobility


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Energy Sector

Our Energy Sector is one of the worlds leading suppliers of a widerange of products, solutions and services in the field of energy tech nology. We enable customers to generate, transmit and distributeelectrical power at the highest levels of efficiency. We also helpthem produce, convert and transport the primary fuels oil and gas.Were the only manufacturer worldwide with knowhow, products,solutions and key components spanning the entire energy con version chain. Our exceptional solutions expertise is particularly striking in the area of interfaces: for example, in plant to gridconnections, grid integration technologies and smart distributionsystems linking grids to consumers.Further information is available at www.siemens.com/energy .




Pro t (in millions of euros) 3,562Pro t margin 14.0%




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Oil & GasWe offer customers in the oil and gas, process and energysupply industries a wide portfolio of products and solutions

for the ecofriendly and resource-saving utilization of energyin areas such as the production and processing of oil and gasand the energy-ef cient generation of electricity.www.siemens.com/ar/oil-and-gas

Fossil Power GenerationOur innovative technologies generate more electricity fromless fuel. We boost the ef ciency of coal- and gas-based elec-tricity production and provide technologies for low-carbon

fossil power generation.www.siemens.com/ar/ ossil-power-generation

Renewable EnergyWere steadily expanding our position in the dynamic renew-ables market with innovative wind turbines that rankamong the most reliable in the world, with large-scale photo-voltaic projects and with leading-edge technologies for solar-thermal power plants.

www.siemens.com/ar/renewable-energy

Energy ServiceOur broad spectrum of innovative products and services en-sures plant reliability, improved ef ciency and optimal envi-

ronmental performance for our customers operating plantassets in the oil and gas, industrial processing and heat andpower generation industries, enabling them to gain the max-imum bene t from their investments.www.siemens.com/ar/energy-service

Power TransmissionLeveraging our innovative strengths in low-loss power trans-mission, reliable switchgear and transformers, and advanced

power transmission systems, we enable customers to transmitpower for example, green electricity from renewable energysources like offshore wind farms safely and ef ciently.www.siemens.com/ar/power-transmission

Power DistributionThe prerequisite for sustainable energy management, oursmart grid technologies increase the ef ciency of energy sys-tems. We offer innovative medium-voltage components and

systems, solutions for energy automation and services forelectrical systems and networks.www.siemens.com/ar/power-distribution

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Healthcare Sector

Our Healthcare Sector is one of the worlds largest providers to thehealthcare industry. We specialize in medical solutions based onour core competencies and innovative strengths: on the one hand,diagnostic systems and therapeutic technologies; and on the other,knowledge processing including information technology and sys tems integration. Our acquisitions in the field of laboratory diagnos tics have made us the first integrated healthcare company to com bine imaging systems, laboratory diagnostics, treatment solutionsand healthcare IT rounded off by consulting and services. To lever age our market and growth potentials even further, were reorganiz ing our activities into four Divisions: Imaging & Therapy Systems,Clinical Products, Diagnostics and Customer Solutions. In the future,our hearing instruments business will be operated as a separate unit.

Further information is available at www.siemens.com/healthcare .




Pro t (in millions of euros) 748Pro t margin 6.1%



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Imaging & IT*Our innovative imaging systems are routinely used in hospi-tals and doctors of ces, where they support physicians in

early disease detection, reliable diagnosis, effective treatmentand patient-friendly follow-up care. Our advanced IT solutions ranging from image review and distribution to the manage-ment of entire data sets is helping make healthcare morepatient-oriented, open and transparent. Work ows can nowbe designed more ef ciently, cutting costs in the process.www.siemens.com/ar/imaging-and-it

Work ow & Solutions*

Our aim is to accelerate the accurate diagnosis of the mostcommon diseases and establish new worldwide standards fortheir treatment. We leverage our broad portfolio of productsand services to develop integrated solutions that increase theclinical and economic value of our individual offerings. Re-

ecting the local focus of healthcare delivery, we provide cus-tomers with solutions tailored to their speci c needs.www.siemens.com/ar/work ow-and-solutions

Diagnostics*Committed to advancing patient care, we support cliniciansin diagnosing disease, managing patient conditions and mon-

itoring medical therapies. Our work helps improve healthcarequality and reduce treatment costs through early diagnosis.www.siemens.com/ar/diagnostics

* Sector structure as of September 3 , 1

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In addition to the Industry, Energy and Healthcare Sectors, ourportfolio includes the equity investments Nokia Siemens Networksand BSH Bosch und Siemens Hausgerte GmbH.

Equity Investments

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Nokia Siemens Networks (NSN)Were a leading global enabler of telecommunications ser-vices. With our focus on innovation and sustainability, we

provide a complete portfolio of mobile, xed and convergednetwork technology as well as professional services, includingconsulting and systems integration, deployment, mainte-nance and managed services. Were committed to increasingthe energy ef ciency of our GSM/EDGE and WCDMA/HSPAbase stations by up to 40 percent by 2012, compared to 2007.www.siemens.com/ar/nsn

BSH Bosch und Siemens Hausgerte GmbH (BSH)

As the worlds third-largest appliance maker, we develop andmanufacture innovative, extremely energy-ef cient house-hold appliances that conserve natural resources and offerunique advantages over the products of our competitorsworldwide.www.siemens.com/ar/bsh

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Our Cross Sector Businesses Siemens IT Solutions and Servicesand Siemens Financial Services * specialize in solutions for theentire IT service chain and in company financing, respectively.

Siemens IT Solutions and ServicesAs a leading European IT service provider with a global pres-ence, were rigorously oriented toward the speci c require-ments of the worldwide IT market. Our solutions and servicesenable customers in both the private and public sectors tocreate value through IT. From consulting and systems integra-tion to the management of IT infrastructures, were a single-source supplier for the entire IT service chain.www.siemens.com/ar/it-solutions

Siemens Financial Services*With nancing playing an ever-greater role in facilitating in-vestments in energy, industry and healthcare technologies,customized nancial solutions are becoming an increasinglyvital competitive factor for Siemens particularly when itcomes to acquiring new customers. We provide Siemens andbusiness-to-business customers worldwide with capital andservices for infrastructure, equipment and operations.www.siemens.com/ar/fnance

Cross-Sector Businesses

* As of October 1, 1 : Financial Services


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Cross-Sector Services

Our Cross Sector Services include the office and commercialreal estate business of Siemens Real Estate.

Siemens Real EstateWere responsible for all of Siemens real estate activitiesworldwide managing our companys real estate portfolio,operating its real estate holdings and overseeing their utiliza-tion, providing real-estate-related services and implementingall construction projects company-wide in order to guaranteethat resource use is sustainable and as cost-effective, transpar-ent and ef cient as possible.www.siemens.com/ar/sre


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Financial calendar

First-quarter nancial report Jan. 25, 2011

Annual Shareholders Meeting Olympiahalle, Munich, 0:00 a.m. Jan. 25, 2011

Ex-dividend date Jan. 26, 2011

Second-quarter nancial report and Semiannual Press Conference May 4, 2011

Third-quarter nancial report July 28, 2011

Preliminary gures for scal 20 / Press conference Nov. 10, 2011

Annual Shareholders Meeting for scal 20 Jan. 24, 2012

Provisional. Updates will be posted at www.siemens.com/financial-calendar .


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Information resources

Copies of the Annual Report are also available from:E-mail [email protected] www.siemens.com/order-annualreportPhone + 49 72 7 480024Fax + 49 72 7 7 6

Siemens employees may obtain copies from:LZF, Frth-BisloheIntranet https://c4bs.gss.siemens.comFax + 49 9 6 4 - 427English Order no. A 9 00-F-V8 -X-7600German Order no. A 9 00-F-V8

French Order no. A 9 00-F-V8 -X-7700Spanish Order no. A 9 00-F-V8 -X-7800

Employees should be sure to include their postal address andcomplete order data (Org-ID and cost center information).

Copyright noticeDesignations used in this document may be trademarks, the useof which by third parties for their own purposes could violate therights of the trademark owners.


Further information on the contentsof this brochure is available at:Address Siemens AG

Wittelsbacherplatz 280 MunichGermany

Phone + 49 89 6 6- 44 (Media Relations)+ 49 89 6 6- 2474 (Investor Relations)

Fax + 49 89 6 6- 008 (Media Relations)+ 49 89 6 6- 28 0 (Investor Relations)

E-mail [email protected]@siemens.com

Information on research, development and innovation atSiemens is available at www.siemens.com/innovation .

The company publication Pictures of the Future : The Magazinefor Research and Innovation can be ordered free of charge atwww.siemens.com/po .

The Siemens Annual Report for 1 can be downloadedin English and German at www.siemens.com/annual-report and www.siemens.com/geschae tsbericht .


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