Siemens 2007 Annual Report Download - page 19

Letter to our Shareholders 19
Munich District Court I has imposed a fi ne in connection with the investigations of our former
Communications Group (Com). In addition, a fi nal settlement has been reached with the German
tax authorities. These actions mark the end of the investigation at Com by the Munich Public
Prosecutor’s Offi ce and the German tax authorities insofar as it relates to Siemens AG.
Nonetheless, we’re continuing to do everything in our power to uncover any irregularities that may
have occurred in the past. Wherever wrongdoing comes to light, we will take immediate action.
Ethical conduct at all times and in all places is not just possible; it’s absolutely vital for us. That’s our
corporate culture. Siemens – our name stands for the highest performance with the highest ethics.
Fiscal 2008 – Opportunities worldwide
In our very successful fi scal year 2007, we set the stage for reinforcing and expanding our leading
position on the world market. We restructured our portfolio and augmented it with a number of out-
standing acqui sitions. For the year ahead, we’ve set clear goals: We want to make Siemens faster,
more focused and less complex.
We also intend to cut our costs – in particular, our selling, general and administrative (SG&A) costs.
To this end, we’re implementing targeted measures at our Corporate Units, operating units and
Regional Companies that will reduce our current SG&A outlays 10 - 20% by fi scal 2010, enabling us
to close the gap to our best competitors.
By implementing our new organizational structure, we’re creating a company with three strong
pillars: Industry, Energy and Healthcare. In all three Sectors, our power of innovation, our global
market presence and our solutions expertise are positioning us to provide answers to the toughest
questions of our time – answers that cannot be surpassed by anyone anywhere. Building on our
achievements, we’re working with pride and passion to strengthen Siemens – step by step, with
great determination and a clear focus on the future.
Peter Löscher
President and Chief Executive Offi cer
Siemens AG