Siemens 2005 Annual Report Download - page 218

Management’s discussion and analysis
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Sales and earnings (in millions of euros) 2005 2004 2003 2002(1) 2001(1)
Net sales 75,445 70,237 69,775 84,016 87,000
Gross profit on sales 21,943 20,645 19,836 23,206 23,105
Research and development expenses 5,155 4,650 4,730 5,819 6,782
as a percentage of sales 6.8 6.6 6.8 6.9 7.8
Income from continuing operations 3,058 3,450 2,355
Net income 2,248 3,405 2,445 2,597 2,088
Employees – continuing operations 2005 2004 2003 2002(1) 2001(1)
Employees(4) (September 30, in thousands) 461 424 411 426 484
Employee costs (in millions of euros) 26,646 25,096 25,434 27,195 27,102
Cash flows (in millions of euros) 2005 2004 2003 2002(1) 2001(1)
Net cash provided by operating activities 4,217 4,704 5,419 5,564 7,016
Amortization, depreciation and impairments 3,316 3,248 3,230 4,126 6,264
Net cash used in investing activities (5,706) (1,689) (3,848) (810) (5,886)
Capital spending(3) (6,511) (4,481) (4,544) (8,013) (11,656)
Net cash used in financing activities (1,403) (3,108) (487) (859) (95)
Net increase (decrease) in cash and cash equivalents (4,069) 41 953 3,394 940
Assets, liabilities and shareholders’ equity (in millions of euros) 2005 2004 2003 2002(1) 2001(1)
Current assets 46,803 45,946 43,489 44,062 51,013
Current liabilities 39,833 33,372 32,028 34,712 44,524
Debt 12,435 11,219 13,178 12,346 12,610
Long-term debt 8,436 9,785 11,433 10,243 9,973
Net debt(2) (2,525) 2,357 (379) (751) (4,017)
Pension plans and similar commitments 4,917 4,392 5,843 5,326 4,721
Shareholders’ equity 27,117 26,855 23,715 23,521 23,812
as a percentage of total assets 31 34 31 30 26
Total assets 86,205 79,518 77,605 77,939 90,118
(1) Amounts for 2002 and 2001 are not adjusted for discontinued operations (see Note 3
for further information on discontinued operations). Accordingly, amounts for 2002
and 2001 periods are not directly comparable with the Company’s fiscal and quarterly
data for 2005, 2004 and 2003 which have been recast for discontinued operations.
(2) Net debt includes four positions of the Consolidated Balance Sheets: Cash and cash
equivalents, Marketable securities, Short-term debt and current maturities of long-term
debt and Long-term debt.
(3) Intangible assets, property, plant and equipment, aquisitions, and investments.
(4) Without temporary student workers and trainees.
(5) EVA of fiscal 2004 has been calculated according to the assumptions used in fiscal 2005.
(6) Amounts for 2003 are not adjusted for discontinued operations.
(7) To be proposed at the Annual Shareholders’ Meeting.
(8) XETRA closing prices, Frankfurt.
(9) Based on shares outstanding.
Five-year summary