Siemens 2006 Annual Report Download - page 8

Letter to our Shareholders
8
A two-pronged strategy is positioning Siemens for the future.
The first Fit4More pillar – Performance and Portfolio – comprises two main elements: targeted
acquisitions and the strategic reorientation of specific businesses, in particular our Information
and Communications activities. In fiscal 2006, we implemented a number of key portfolio-
enhancing measures in both areas. On the one hand, we made a series of acquisitions that will
expand our positions in the long-term growth markets of power, environmental technology,
medical solutions, automation systems and public and industrial infrastructures. On the other
hand, we introduced numerous measures to get Siemens Business Services (SBS) back on track.
These measures included a strategic reorganization, which was completed at the end of fiscal
2006 (see also pages 58, 74, 108, 145 of this Report).
Two portfolio adjustments were of particular importance: a broadening of the focus of our
Medical Solutions Group (Med) and the decision to fold the carrier business of our Communica-
tions Group (Com) into a joint venture with Nokia.
■Med’s acquisitions of U.S.-based Diagnostic Products Corporation and Bayer Diagnostics are
moving us into the new, highly attractive growth segment of in-vitro diagnostics. Once both
acquisitions have been finalized, we’ll occupy an excellent starting position on a par with the
No. 2 global provider. These two acquisitions will also make Med the world’s first supplier to
deliver products, systems and services across the entire healthcare continuum, from prevention
and diagnosis to treatment and follow-up care. Since IT plays a key role in integrating clinical
workflows, increasing efficiency and lowering costs, Med’s leading global position in healthcare
IT will give it an additional competitive edge.