Siemens 2009 Annual Report Download

Download and view the complete annual report

Please find the complete 2009 Siemens annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 322

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268
  • 269
  • 270
  • 271
  • 272
  • 273
  • 274
  • 275
  • 276
  • 277
  • 278
  • 279
  • 280
  • 281
  • 282
  • 283
  • 284
  • 285
  • 286
  • 287
  • 288
  • 289
  • 290
  • 291
  • 292
  • 293
  • 294
  • 295
  • 296
  • 297
  • 298
  • 299
  • 300
  • 301
  • 302
  • 303
  • 304
  • 305
  • 306
  • 307
  • 308
  • 309
  • 310
  • 311
  • 312
  • 313
  • 314
  • 315
  • 316
  • 317
  • 318
  • 319
  • 320
  • 321
  • 322

How can we ensure sustainability
while generating profitable growth?
www.siemens.com
Annual Report 

Table of contents

  • Page 1
    How can we ensure sustainability while generating profitable growth? Annual Report 2009 www.siemens.com

  • Page 2

  • Page 3
    By giving the right answers. Company Report 2009

  • Page 4
    ... for Developing Countries - An Analysis Based on South America and its Mining Industry." Andrea has been employed at Siemens since 2007. After working on various strategy projects on climate change and other topics at Siemens Management Consulting (SMC), she joined the team at Product-related...

  • Page 5
    ...� 58 Supply chain management and sustainability - A world of opportunity Interview with Barbara Kux � 60 Our employees � 62 Siemens - An attractive employer for the best and brightest people worldwide � 64 Our structure Industry � 68 Energy � 72 Healthcare � 76 Cross-Sector Businesses...

  • Page 6
    ...www.siemens.com/strategy Our vision Siemen s - The pioneer in â-¼ energy efficiency industrial productivity affordable and personalized healthcare intelligent infrastructure solutions â-¼ â-¼ â-¼ 2 Introduction 2 Avatars 10 Our world 3 Our vision 4 Our values 36 Our company 5 Contents Book I

  • Page 7
    Our values Re sponsible Committed to ethical and responsible actions. Excellent Achieving high performance and excellent results. Innovative Being innovative to create sustainable value. 66 Our structure 6 Foreword 8 Managing Board of Siemens AG Our vision and our values

  • Page 8
    ... us the global powerhouse we are today - that is pushing us to excel even in these tough times. Being a pioneer means setting ambitious goals and capitalizing on new growth opportunities everywhere in the world - particularly in the booming markets of the world's emerging countries - with innovative...

  • Page 9
    ... to make major investments in research and development even in today's difficult business environment. We have a clear vision for the future: to be a pioneer in efficient energy supply, industrial productivity, affordable, personalized healthcare systems and intelligent infrastructure solutions. Our...

  • Page 10
    ... Officer Joe Kaeser Corporate Human Resources 8 Europe, Commonwealth of Independent States (C.I.S.), Africa, Middle East Corporate Finance and Controlling Corporate Communications and Government Affairs Corporate Development Siemens Financial Services Siemens IT Solutions and Services Equity...

  • Page 11
    ... Barbara Kux Heinrich Hiesinger Wolfgang Dehen Hermann Requardt Corporate Legal and Compliance Americas Corporate Supply Chain Management Corporate Sustainability Global Shared Services Industry Corporate Information Technology Energy Asia, Australia Healthcare 9 Corporate Technology

  • Page 12
    ... to their limits. In addition, cities consume vast amounts of natural resources: they account for 75 percent of the world's total energy consumption and generate 80 percent of its greenhouse gases. Sustainable, energy-efficient infrastructures for buildings, transportation, power supply and water...

  • Page 13
    .... Global processes - from supply chain management and R&D to production, marketing and sales - are placing growing demands on enterprises, particularly with regard to cost, efficiency and innovation. To survive in global competition, companies must produce high-quality, affordable, customized...

  • Page 14
    ...? How can the flood of medical data be bundled to accelerate analysis? How can different types of cancer be diagnosed earlier? 4:25 p.m. 4:23 p.m. 2 Introduction 10 Our world 12 Demographic change and healthcare 36 Our company 18 Urbanization and sustainable development 12 10 Our answers to...

  • Page 15
    Demographic change and healthcare // 01 4:34 p.m. 4:28 p.m. 66 Our structure 13 24 Climate change and energy supply XX Globalization and competitiveness

  • Page 16
    ...- from extremely accurate diagnostic systems to software solutions that help optimize clinical workflows. And that not only cuts costs but also benefits patients. 2 Introduction 10 Our world 12 Demographic change and healthcare 36 Our company 18 Urbanization and sustainable development 14 10 Our...

  • Page 17
    ... physicians not only detect disease but also monitor patient conditions and therapies. All these systems generate a huge amount of data, which can be managed using intelligent software solutions. This data is then made available at the right time and place, ensuring that decisions are based on up...

  • Page 18
    ...-healthcare A revolution in CT imaging Molecular imaging meets CT Improved early detection Our SOMATOM Definition Flash is an innovative CT scanner that is setting new industry-wide standards for speed and dose reduction: it requires only a fraction of the radiation dose used by previous systems...

  • Page 19
    ... technologies enable us, uniquely, to combine imaging systems and evaluation software and bundle them into a complete clientserver solution - to the advantage and benefit of our customers, who can access images more quickly, focus on evaluations and make prompt diagnoses - all factors that support...

  • Page 20
    ...How can we save energy and cut costs by modernizing buildings? How can we improve urban infrastructures to ensure that our cities remain livable? 7:20 a.m. 7:15 a.m. 2 Introduction 10 Our world 12 Demographic change and healthcare 36 Our company 18 Urbanization and sustainable development 18 10...

  • Page 21
    How can we transport energy over long distances as efficiently as possible? How can we leverage advanced IT solutions to slash CO2 emissions and maximize cost efficiency? 8:05 a.m. 7:47 a.m. 7:55 a.m. XX Our structure 19 XX Climate change and energy supply XX Globalization and competitiveness

  • Page 22
    ... for cars entering the city center. Intelligent networks like London's can also equip other traffic-plagued cities for a sustainable future. And we welcome this prospect, since the dynamic market for innovative transportation systems is creating major opportunities for our company. 2 Introduction...

  • Page 23
    ..., systems and services offers solutions to the challenges facing cities in the areas of transportation, buildings, lighting, power supply, healthcare, water and security. No other company can rival our extensive portfolio of technologies for major urban centers. As an integrated technology company...

  • Page 24
    ... their value and reliability. Energy accounts for more than 40 percent of the operating costs of a typical office building. And this is where energy-saving performance contracting proves its worth. We're the only supplier on the market to offer comprehensive solutions that enable customers to...

  • Page 25
    ... efficiency across all business processes and operations while substantially reducing CO2 emissions and costs. We provide everything from consulting services to IT and communications solutions to energy management systems and intelligent supply networks. Our Transformational Data Centers, which also...

  • Page 26
    ... supplies for 100 million people? How can we reduce harmful greenhouse gas emissions? 5:42 p.m. 5:37 p.m. 2 Introduction 10 Our world 12 Demographic change and healthcare 36 Our company 18 Urbanization and sustainable development 24 10 Our answers to the toughest questions of our time

  • Page 27
    ....com/answers www.siemens.com/climatechange-energysupply Climate change and energy supply // 03 How can we harness the energy of the wind and the sun? How can we cut our energy requirements without reducing our quality of life? 6:04 p.m. 5:49 p.m. 5:56 p.m. 66 Our structure 25 24 Climate...

  • Page 28
    ... p.m. 6:12 p.m. How can we make power failures a thing of the past? Energy supplies are not dependable in many of the world's cities and rural regions. Our high-voltage direct-current (HVDC) technology is ideally suited for transporting power across long distances reliably and efficiently - from...

  • Page 29
    ... sustainable energy supplies - by boosting the efficiency of conventional power plants and driving the use of renewable energies. At the consumer end, our products and solutions - for example, our energy-efficient building technologies, advanced LEDs for lighting applications, and energy-saving...

  • Page 30
    ... for solar-thermal power plants used for non-continuous operation. We're the world market leader in turbines for solar-thermal systems. The most common type of system today makes use of parabolic mirrors as collectors. Other up-and-coming technologies which are finding growing application include...

  • Page 31
    ... the grid's expanded automation structure, advanced sensors and decentralized information and communications structure. In addition to enhancing the efficiency and reliability of the power supply chain, smart grids enable consumers to actively participate in the energy market and thus contribute to...

  • Page 32
    How can we enhance the quality of life on our planet with our products and solutions? 11:22 a.m. 11:10 a.m. 4 Introduction 10 Our world 12 Demographic change and healthcare 36 Our company 18 Urbanization and sustainable development 30 10 Our answers to the toughest questions of our time

  • Page 33
    ...a factory's automation systems will operate smoothly when the factory is still on the drawing board? How can we get healthcare costs under control while improving patient outcomes? 11:45 a.m. 11:47 a.m. 66 Our structure 31 24 Climate change and energy supply 30 Globalization and competitiveness

  • Page 34
    .... We're setting new standards in ecofriendly wastewater treatment, where our innovative membrane technology and biological processes are slashing energy consumption by up to 40 percent. 2 Introduction 10 Our world 12 Demographic change and healthcare 36 Our company 18 Urbanization and sustainable...

  • Page 35
    ... processes, and our building and security technologies are optimizing and streamlining production and working conditions. In addition, we're providing mobility solutions and networking transport systems all around the world. 66 Our structure 33 24 Climate change and energy supply 30 Globalization...

  • Page 36
    ... a uniform user interface for the various applications but also cuts operator costs for hardware, maintenance and employee training. With its new range of functions, our SPPA-T3000 control system offers intelligent, cost-efficient solutions for all types of power plants. Electronic health records...

  • Page 37
    ... for variable-speed operation are pillars of efficient energy management. Using our SinaSave software tool, customers can easily calculate how quickly their investments in energy-saving motors and converters will pay for themselves. Our Totally Integrated Automation platform provides a homogeneous...

  • Page 38
    .... www.siemens.com/sustainability-report vur understanding of sustainability Profitable lonm-term mrowth is our aim, and responsible value creation is pavinm the way for our success. That's why we remard the intemration of the economic, environmental and social aspects of our business activities as...

  • Page 39
    .... A culture that makes the vision of a healthy work-life balance a reality. Why is this so important to us? Because we know that only satisfied employees can create the innovative products and solutions we need to capture leadinm positions in tomorrow's key markets worldwide and achieve sustainable...

  • Page 40
    ... costs. www.siemens.com/health-safety Society l We're a member of society in roumhly 190 countries - as an employer, customer and corporate citizen. Wherever we do business, we fulfill our responsibility to society, seizinm every opportunity to make a positive contribution to community development...

  • Page 41
    ... societies worldwide. All these factors are positioninm us for profitable lonm-term mrowth. www.siemens.com/strategy "Our approach to environmental protection is all-embracing. For 2011, we've set an ambitious goal of improving our energy efficiency 20 percent and reducing our production-related...

  • Page 42
    ... markets in which we can capture leadinm positions and set new technolomy trends - while strenmtheninm our local presence and creatinm local value worldwide. Because achievinm sustainable, profitable mrowth and outperforminm our competitors is not just our time-tested stratemy - it's also our vision...

  • Page 43
    ... administrative and procurement processes. And these programs have proved successful - as the cost reductions we've achieved demonstrate. In other positive developments, we settled the lawsuits against our company quickly and successfully. We also set up compliance structures and processes that are...

  • Page 44
    www.siemens.com/strategy High-quality businesses No. 1 or No. 2 in technolomies and markets Megatrends as grewth drivers Demographic change Urbanization Climate change Globalization Industry Integrated technology company Energy Efficient IT and financial solutions World's largest Environmental ...

  • Page 45
    ... support our customers worldwide - and acquire new customers - via our local service network. What's more, in the medium term, we can also leverage the product knowhow and cost-optimization expertise we gain in low- and medium-end markets to develop products for high-end segments. 66 Our structure...

  • Page 46
    ...- because we place greater value on long-term opportunities than short-term profits. We are where our customers are, supporting them with our technologies and cooperating with them to find competitive solutions for the future. 2 Intreductien 10 Our werld 40 A pioneer of our time - Yesterday, today...

  • Page 47
    ... management system and uniform development measures for employees and managers; the technologies we develop for specific applications can often be used in other businesses as well; and our access to global markets is strengthening our position in the various regions of the world. At the same time...

  • Page 48
    ... employees work at 1,640 locations around the globe, including 176 R&D facilities. The largest research centers operated by our Corporate Technology Department are situated in Germany, the U.S., China and India. vur strong market position worldwide is based on our power of innovation and technology...

  • Page 49
    ... Siemens researchers are working every day to find new solutions for energy, industry and healthcare. Europe, C.I.S.,1 Africa, Middle East Worldwide share (in %) Americas Worldwide share (in %) Asia, Australia Worldwide share (in %) Revenue (in millions of euros) 2 Employees 3 R&D employees...

  • Page 50
    ...to new heights - Our Inventors of the Year In fiscal 2009, our 30,800 researchers submitted some 7,700 invention reports. Every year, we honor some of our most creative people. Read on to meet some of our Inventors of the Year. Energy-saving steel preductien Thanks to process technology developed by...

  • Page 51
    ...' power of innovation." Intelligent visien Surveillance cameras developed by Dr. Visvanathan Ramesh (46) are enabling security personnel in public spaces such as subway stations and airports to respond to dangerous situations faster and more effectively. Using new, complex algorithms for electronic...

  • Page 52
    ...-loss transmission systems to a wide range of energy-efficient products, water and wastewater systems, integrated transportation networks and healthcare solutions. With operations in around 190 countries, we're confronted with a wide variety of political, economic, social and cultural factors. We're...

  • Page 53
    ... Board Member and Labor Director Siemfried Russwurm. New, bindinm EHS principles require all our Divisions and Remions to introduce intemrated EHS manamement systems. www.siemens.com/health-safety Human rights I The observance of human rimhts is a fundamental criterion for our business decisions...

  • Page 54
    www.siemens.com/sustainability-report www.siemens.com/environmentalportfolio Ecofriendly metro in Oslo, Norway I Transportation accounts for 25 to 30 percent of final enerpy consumption worldwide. Of this amount, more than 75 percent is attrimutamle to road transport and only two percent to rail ...

  • Page 55
    ...as an employer, a contractor, an investor and a provider of innovative technolopy solutions. And as an inteprated technolopy company, we're seizinp unparalleled opportunities to promote the sustainamle development of our customers and our own orpanization. www.siemens.com/sustainability-report "We...

  • Page 56
    ... as supply chain management. In her capacity as Chief Sustainability Officer, she coordinates and oversees the activities of our Sustainability Board and Sustainability Office. The Board is responsible for developing our sustainability strategy and program as well as for monitoring and reporting on...

  • Page 57
    ... solutions for the entire energy conversion chain - from power generation and distribution to the efficient use of energy in industry, households and transportation to the most advanced technologies for water management and air pollution control. Products and systems that - due to their high energy...

  • Page 58
    ... tons a year - the amount now produced by New York, Tokyo, London, Singapore, Hong Kong, Berlin and Rome. Experts from our Corporate Technology Department and the Siemens Sectors have calculated potential greenhouse gas reductions for all our offerings on the basis of product- and solution-specific...

  • Page 59
    ...first-time publication took second place in the IÃ-W/future 2009 Sustainability Report Ranking, a survey on sustainability reporting at major German companies that was supported by Germany's Ministry of Labor and Social Affairs and the German Council for Sustainable Development. 66 Our structure 60...

  • Page 60
    ... public buildings. To date, energy-saving measures have been implemented in about 500 Berlin structures at a cost (including maintenance) of some â,¬60 million. The initiative, which is partially financed by private energy service providers, has cut energy expenditures in schools, daycare centers...

  • Page 61
    ...- through energy savings. Public security Airport systems Energy supply systems and environmental protection Ports Water and wastewater management Consulting services for sustainable urban development Education Consulting services for public administration With the world's largest Environmental...

  • Page 62
    ... A company like Siemens, which has activities in some 190 countries, has substantial savings potential in the area of procurement. Our goal is to identify and realize that potential. But we can't just intensify cost pressure on our suppliers. We have to focus on the entire supplier-to-customer value...

  • Page 63
    ...of energy-efficient technologies has a simple economic logic: procurement costs can be recouped in a short time through the savings they generate. Consequently, green technologies will be a strong growth driver for Siemens in the future. Our customers will also profit from significant CO2 reductions...

  • Page 64
    ... for wellqualified, highly motivated employees for our roughly 1,640 locations around the world. You can take an entry-level position in the field of your choice, or you can join one of our trainee programs. www.siemens.com/career-graduates Career opportunities for experienced professionals l You...

  • Page 65
    ...employees are working on innovative products and solutions at 1,640 locations in nearly every country in the world. Whether in R&D, production, assembly, quality assurance, maintenance, business... time and ensuring our sustainable profitable growth. www.siemens.com/employees 66 Our structure 63 63

  • Page 66
    ... our corporate culture, a culture in which all our employees know exactly what their goals are and how best to leverage their potential. We call it People Excellence, and it's the basis of our company's sustainable success. In fiscal 2009, we hired 51,690 new employees, including 9,490 engineers. At...

  • Page 67
    ... in more than 20 countries in Europe, Asia, the Americas and Africa are now enrolled in our training programs. In a globalized world marked by rapid technological change and steadily increasing flows of information, education is crucial for success. In 2009 alone, we invested some â,¬228 million...

  • Page 68
    ...structure www.siemens.com/industry Industry www.siemens.com/energy Energy www.siemens.com/healthcare Hemlthcmre www.siemens.com/cross-sector_businesses Cross-Sector Businesses www.siemens.com/cross-sector_ser vices Cross-Sector Services www.siemens.com/equity_investments Equity Investments...

  • Page 69
    ... structure The most comprehensive company reorganization in 20 years has put us on track to continue achieving profitabie iong-term revenue growth. We've grouped our operations into three Sectors: Industry, Energy and Heaithcare. Our activities aiso inciude Siemens IT Soiutions and Services, Siemens...

  • Page 70
    ...customers' key requirements. And as the worid's No. 1 suppiier of products, compiete systems, appiications and services for compiete power trains and for aii industry segments, we have the soiutions they need. www.siemens.com/ar/drive-technologies Building Technologies I We're the preferred partner...

  • Page 71
    ... the industry and infrastructure segments. More information on the products, solutions and services with which we're tackling the challenges of our time is available in 'Our world' on pages 18-35 of Book I." 66 Our structure 69 80 Cross-Sector Businesses Cross-Sector Services 80 Equity Investments

  • Page 72
    ....siemens.com/industry Industry Heinrich Hiesinger Member of Siemens' Managing Board Industry Sector CEO "We understand the challenges facing global industry. To master them, we're working closely with our partners, setting technology trends in the process. We promise our customers greater energy...

  • Page 73
    ... 130 countries. In fiscml 2009, it genermted externml revenue of â,¬33.9 billion mnd profit of â,¬2.7 billion. Integrated technologies for greater productivity, energy efficiency and flexibility A09G001_E 66 Our structure 71 80 Cross-Sector Businesses Cross-Sector Services 80 Equity Investments

  • Page 74
    ... benefit from their investments. www.siemens.com/ar/energy-service Power Transmission I Leveraging our innovative strengths in efficient power transmission, reiiabie switchgear, high-performance transformers and advanced power transmission systems, we enabie customers to transport eiectricity...

  • Page 75
    ...emissions. www.siemens.com/energy "As the world's leading supplier of efficient products, solutions and services for the entire energy conversion chain, our Energy Sector is tackling the challenges of climate change. To find out more, please turn to pages 18-35 of Book I." 66 Our structure 73 80...

  • Page 76
    ... Member of Siemens' Managing Board Energy Sector CEO " The Energy Sector can look back on an eventful year of major orders and trailblazing innovations. As a result, we're now well-equipped to meet the challenges of the future. Business developments were very gratifying: in fiscal 2009, we set new...

  • Page 77
    ... c d Europe, C.I.S.,2 Africa, Middie East Germany Americas Asia, Austraiia 25,405 14,715 1,905 6,552 4,138 c d Fiscai 2009 a b 1 Customer iocation 2 Commonweaith of Independent States Our Energy Sector is the world's lemding supplier of m wide rmnge of products, solutions mnd services for power...

  • Page 78
    ... Customer Service organizations. www.siemens.com/ar/workflow-and-solutions Diagnostics I We deveiop, manufacture and market ciinicai iaboratory diagnostic products that generate test resuits which heip physicians detect diseases, manage patient conditions and monitor medicai therapies. www.siemens...

  • Page 79
    ...have access to much more information when diagnosing and treating diseases; and benefiting societies, whose heaithcare systems can be streamiined through more efficient processes. www.siemens.com/healthcare 66 Our structure 77 80 Cross-Sector Businesses Cross-Sector Services 80 Equity Investments

  • Page 80
    ...Hermann Requardt Member of Siemens' Managing Board Healthcare Sector CEO "Demographic change poses massive challenges for the world's healthcare systems. It's time to take a new approach. In the past, physicians reacted to disease. Our innovative technologies now enable healthcare professionals to...

  • Page 81
    ... employees worldwide mnd mctivities in 130 countries. In fiscml 2009, it genermted externml revenue of â,¬11.9 billion mnd profit of â,¬1.5 billion. We provide comprehensive healthcare from a single source, combining the latest laboratory diagnostics with imaging systems and specialized information...

  • Page 82
    ....siemens.com/a r/it-solutions Siemens Financial Services I As a non-bank financing provider, we suppiy Siemens and business-to-business customers woridwide with capitai for infrastructure, equipment and operations. Our knowhow in key Siemens markets and reiated industries makes us an expert manager...

  • Page 83
    www.siemens.com/structure Cross-Sector Businesses, Cross-Sector Services Equity Investments www.siemens.com/structure 66 Our structure 81 80 Cross-Sector Businesses Cross-Sector Services 80 Equity Investments

  • Page 84
    Energy conversion chain The production, transport and processing of primary fossil fuels - Combined-cycle power plants for the oil and gas industry - Electric motors instead of mechanical drives Fossil power generation - Combined-cycle power plants - Combined heat and power (cogeneration) plants - ...

  • Page 85
    ...Denmark. First, for our customers, who are improving their bottom lines - thanks to lower energy costs, higher productivity and more profitable growth. percent - that's how much less energy is consumed in buildings equipped with advanced Siemens technologies. Klinikum Bremerhaven, a large regional...

  • Page 86
    ... trains - Light-rail systems - Traffic management systems - LED traffic signals - Parking management systems - Rail automation and electrification IT solutions and services - Transformational Data Centers - Smart workplace communications Our COREX und FINEX technologies are ecofriendly processes...

  • Page 87
    Building technologies - Energy-saving performance contracting - Building modernization - Components for heating, ventilation and air conditioning Environmental technologies - Water treatment systems - Air pollution control systems Healthcare Lighting (OSRAM) - Light-emitting diodes (LEDs) - Energy...

  • Page 88

  • Page 89
    By giving answers that promote sustainable growth. Financial Report 2009

  • Page 90
    ... solutions in the business-to-business area. SFS supports Siemens as well as third parties in the three industry areas of industry, energy, and healthcare. SFS finances infrastructure, equipment and working capital and supports and advises Siemens concerning financial risk and investment management...

  • Page 91
    ...IT Solutions and Services Siemens Financial Services* FY 2008 7,942 1.20 5,739 3.09 4,903 0.83 Margin ranges * Return on equity 9 Continuing operations Free cash flow Cash conversion Continuing and discontinued operations6 Free cash flow Cash conversion Net debt and Capital structure FY 2009 Net...

  • Page 92
    Reports Supervisory Board / Managing Board Report of the Supervisory Board � 6 Letter to our Shareholders � 12 Corporate Governance Corporate Governance report � 16 Compliance report � 24 Compensation report (part of Notes to Consolidated Financial Statements) � 28 4

  • Page 93
    ...Information resources � 229 Siemens' financial calendar � 230 Information required pursuant to §315 (4) HGB of the German Commercial Code and explanatory report � 108 Compensation report � 114 Report on expected developments � 114 Company structure � 231 In dialogue with our investors...

  • Page 94
    ... year. The timely cost-cutting measures adopted by the Managing Board and the Company's new structure have proven their worth. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 12 Letter to our Shareholders 44 Management's discussion and analysis 122 Consolidated Financial...

  • Page 95
    ... monitored the Managing Board's activities. We were directly involved in all major decisions regarding the Company. on written and oral reports, the Managing Board regularly provided us with timely and comprehensive information on Company planning and business operations as well as on the strategic...

  • Page 96
    ... development at Siemens AG, at Siemens' Sectors and at Siemens worldwide as well as the Company 's financial situation and its major investment and divestment projects. The Managing Board reported regularly and comprehensively on Company planning and the strategic development, business operations...

  • Page 97
    ... 's business and financial position at the end of the third quarter as well as with the status of compliance-related measures. on addition, the Managing Board informed us about the opportunities presented by economic stimulus programs, about the Company 's innovation strategy and about future plans...

  • Page 98
    ...üfungsgesellschaft - audited the Annual Financial Statements of Siemens AG and the related MD&A as well as the Consolidated Financial Statements and consolidated MD&A for the year ended September 30, 2009 in accordance with the requirements of the German Commercial Code (HGB) and approved...

  • Page 99
    ... distribution be used to pay out a dividend of â,¬1.60 per share entitled to a dividend and that the amount attributable to shares of stock of Siemens AG held in treasury by the Company as of the date, as well as attributable to treasury stock retired by the date, of the Annual Shareholders' Meeting...

  • Page 100
    ..., it's still too early to say when the global economy will be back on its feet. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 12 Letter to our Shareholders 44 Management's discussion and analysis 122 Consolidated Financial Statements 12 6 Report of the Supervisory...

  • Page 101
    ... of our efforts anx an incentive to remain vigilant, professional anx highly focusex in all our activities. Business development in fiscal 2009 In fiscal 2009, new orxers were 16 percent below the recorx level of fiscal 2008. Revenue, at â,¬76.7 billion, xeclinex by only one percent, remaining...

  • Page 102
    ... other company in the worlx. For 2011, our target is to generate â,¬25 billion in this segment with our Environmental Portfolio. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 12 Letter to our Shareholders 44 Management's discussion and analysis 122 Consolidated Financial...

  • Page 103
    ... global presence anx, above all, our highly committex anx motivatex people, we have everything on boarx that we neex to be a leaxer in the infrastructure markets of tomorrow. Peter Löscher Presixent anx Chief Executive Officer Siemens AG 218 Managing Board statements, Independent auditors' report...

  • Page 104
    ... the Managing Board in its management of the Company 's business. At regular intervals, it discusses business development, planning, strategy and implementation. It also discusses Siemens' quarterly and half-yearly reports and approves the annual standalone financial statements of Siemens AG as...

  • Page 105
    ...in the application of accounting principles or the auditing of financial statements. The Audit Committee oversees the accounting process. Together with the independent auditors, it also reviews the Company 's financial statements prepared quarterly, half-yearly and annually by the Managing Board. On...

  • Page 106
    ...issues of business policy and corporate strategy as well as on the annual and multi-year planning. The Managing Board prepares the Company 's quarterly and half-yearly reports, the annual stand-alone financial statements of Siemens AG and the Consolidated Financial Statements of Siemens. In addition...

  • Page 107
    ...fiscal 2009 and reported to Siemens: Date of transaction First and family name Function/ Status Form and place of transaction Financial instrument and ISIN Number of shares Share price Total amount Comment 12/17/2008 12/17/2008 Wolfgang Dehen Joe Kaeser Member of Managing Board Member of...

  • Page 108
    ....com/corporate-governance Shareholder relations Four times a year, Siemens AG reports to its shareholders regarding its business development, financial position and earnings. An ordinary Annual Shareholders' Meeting normally takes place within the first four months of each fiscal year. The Managing...

  • Page 109
    ... German Stock Corporation Act requires Siemens AG to have a two-tier board structure consisting of a Managing Board and a Supervisory Board. The two-tier system provides a strict separation of management and supervision. Roles and responsibilities of each of the two boards are clearly defined by law...

  • Page 110
    ... be voted upon the expiration of each authorization. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 24 Compliance report 44 Management's discussion and analysis 28 Compensation report (part of Notes to Consolidated Financial Statements) 122 Consolidated Financial Statements...

  • Page 111
    ... by the Managing Board and the Supervisory Board of Siemens Aktiengesellschaft with the German Corporate Governance Code Siemens AG fully complies and will continue to comply with the recommendations of the German Corporate Governance Code ("Code") in the version of June 18, 2009, published by...

  • Page 112
    ... corruption. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 24 Compliance report 44 Management's discussion and analysis 28 Compensation report (part of Notes to Consolidated Financial Statements) 122 Consolidated Financial Statements 24 16 Corporate Governance report

  • Page 113
    ... as intermediaries between Siemens and final customers (Business Partner Compliance Due Diligence Tool) by means of web-based and face-to-face training sessions. The tool was introduced at the end of July 2008. 218 Managing Board statements, Independent auditors' report, Additional information 25

  • Page 114
    ... employees have completed online training, while around 79,000 employees 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 24 Compliance report 44 Management's discussion and analysis 28 Compensation report (part of Notes to Consolidated Financial Statements) 122 Consolidated...

  • Page 115
    ... The new training courses were successfully tested as a pilot project in October 2009 and will be incorporated into the compliance training program. Employees will receive assistance on specific questions from our "Ask us" help desk. For this purpose, we established a Company-wide network of experts...

  • Page 116
    ... worldwide within the Siemens group is an important element of the new system. The mem- 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 24 Compliance report 44 Management's discussion and analysis 28 Compensation report (part of Notes to Consolidated Financial Statements...

  • Page 117
    ... used by the Company, are employed to set the targets for senior management. The values for ROCE, Free cash flow and Revenue growth are also published as part of the Company's external financial reporting process. As in the previous year, it was determined ex ante that target achievement in relation...

  • Page 118
    ... the members of the Managing Board for fiscal year 2009 (individualized disclosure): 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 24 Compliance report 44 Management's discussion and analysis 28 Compensation report (part of Notes to Consolidated Financial Statements) 122...

  • Page 119
    ...,067 stock awards with a fair value of â,¬416,673 were granted to him pursuant to the service agreement in place as of the date of his mutually agreed-upon early resignation from the Managing Board. B20T028 SAGT028 218 Managing Board statements, Independent auditors' report, Additional information...

  • Page 120
    ...6 Reports Supervisory Board / Managing Board 16 Corporate Governance 24 Compliance report 44 Management's discussion and analysis 28 Compensation report (part of Notes to Consolidated Financial Statements) 32 16 Corporate Governance report B20T029 122 Consolidated Financial Statements SAGT029

  • Page 121
    ... to her Siemens Defined Contribution Benefit Plan (BSAV) in January 2010. Both the number of units and the values of the stock-based compensation component are shown in the following table. The stock awards were recorded at the closing price of the Siemens stock in Xetra trading on the date of...

  • Page 122
    ...grant date conditions of the 1999 and 2001 Siemens Stock Option Plans approved by the Annual Shareholders' Meetings on February 18, 1999 and February 22, 2001 (for details on the Siemens Stock Option Plans see Note 34 of the "Notes to Consolidated Financial Statements"). Vested during fiscal year...

  • Page 123
    ... year Weighted average exercise price Number of options Forfeited during fiscal year Weighted average exercise price Balance at end of fiscal year 2009 1 Number of options Weighted average exercise price (Amounts in number of units or â,¬) Managing Board members serving as of September 30, 2009...

  • Page 124
    ... 30, 2008. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 24 Compliance report 44 Management's discussion and analysis 28 Compensation report (part of Notes to Consolidated Financial Statements) 122 Consolidated Financial Statements 36 16 Corporate Governance report

  • Page 125
    ... following the close of the fiscal year, with value date on January 1. Until the beneficiary 's time of retirement, the pension account is credited on January 1 each year with an annual interest payment (guaranteed interest). For fiscal year 2009, the members of the Managing Board were granted...

  • Page 126
    ... SAGT036_E 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 24 Compliance report 44 Management's discussion and analysis 28 Compensation report (part of Notes to Consolidated Financial Statements) 122 Consolidated Financial Statements 38 16 Corporate Governance report

  • Page 127
    ...one free matching share of Siemens stock for every three Siemens shares acquired and continuously held under the plan. Furthermore, the members of the Managing Board are entitled to participate in the Company 's new Base Share Program that has replaced the former Employee Share Purchase Program. The...

  • Page 128
    ...B20T038_E SAGT038 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 24 Compliance report 44 Management's discussion and analysis 28 Compensation report (part of Notes to Consolidated Financial Statements) 122 Consolidated Financial Statements 40 16 Corporate Governance report

  • Page 129
    ... fiscal year 2009 includes three components: a fixed compensation component, a short-term compensation component based on earnings per share, and a long-term compensation component based on earnings per share. â-¾ 218 Managing Board statements, Independent auditors' report, Additional information...

  • Page 130
    ...000. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 24 Compliance report 44 Management's discussion and analysis 28 Compensation report (part of Notes to Consolidated Financial Statements) 122 Consolidated Financial Statements 42 16 Corporate Governance report B20T039_E...

  • Page 131
    ... the fixed compensation component. The insurance policy for fiscal year 2010 includes a deductible for the members of the Managing and the Supervisory Board subject to the requirements of the German Stock Corporation Act (AktG) and the German Corporate Governance Code. 218 Managing Board statements...

  • Page 132
    ...Financial Services Reconciliation to Consolidated Financial Statements Other Operations Siemens Real Estate Corporate Items and Pensions Eliminations, Corporate Treasury and other reconciling items 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial...

  • Page 133
    ... employees and reported external revenue of â,¬25.405 billion for fiscal 2009. Thereof, 58% was attributable to Europe, C.I.S., Africa, Middle East, 26% to the Americas, and 16% to Asia, Australia. The United States (U.S.) was the largest single national market for Energy in fiscal 2009, accounting...

  • Page 134
    ... IT Solutions and Services and for 14 Divisions of our Sectors: new orders, revenue, profit and profit margin. For Equity Investments we report profit, and for SFS we report profit and total assets within Management's discussion and analysis. In addition, further information including free cash flow...

  • Page 135
    ... corporate strategy is derived from our vision: Siemens will pioneer energy efficiency, industrial productivity, â-ª affordable and personalized healthcare, â-ª and intelligent infrastructure solutions based on market and technology leadership. â-ª â-ª Our strategic goal is sustainable, profitable...

  • Page 136
    ...16% Optimized capital structure Cash conversion rate "1 - growth rate" > 2 x GDP growth Best-in-class margin ranges SG&A reduction of 10% Fit4 Operational Excellence Best-in-class for all businesses and functions through Open innovations Global supply chain management 2010 Corporate Responsibility...

  • Page 137
    ... technologies and air pollution control. 218 Managing Board statements, Independent auditors' report, Additional information 49 95 Net assets position 97 Report on post-balance sheet date events 98 Risk report 108 Information required pursuant to §315 (4) HGB of the German Commercial Code and...

  • Page 138
    ... SG&A expenses. Going 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 50 44 Business and operating environment

  • Page 139
    ... program and related to the program were recognized under Corporate items. Supply Chain Management initiative In fiscal 2009, we have launched a Supply Chain Management initiative with the objective of working with our suppliers to establish a leading global procurement network, push the development...

  • Page 140
    ... efficient use of energy in transport, industrial 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 52 44 Business...

  • Page 141
    .... This goes for improvements in building systems technologies, the development of higher-performance lighting solutions, for example using LEDs, as well as better solutions for buildings and transportation, ranging from energy-saving engines to the "Complete Mobility" approach, which involves fully...

  • Page 142
    ... costs for Healthcare is 12.2% and for Diagnostics 9.7%. 2 Return on equity. B25G007_E 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements...

  • Page 143
    ... Financial Statements is defined as Net cash provided by (used in) operating activities (continuing operations) minus Additions to intangible assets and property, plant and equipment (continuing operations). Our target for CCR is 1 minus our annual organic revenue growth rate. 218 Managing Board...

  • Page 144
    ... this report. B25G012_E 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 56 44 Business and operating environment

  • Page 145
    ... key levers: High perfcrmance culture (e.g. Remuneration System, Share Matching Plan), Glcbal diverse talents (e.g. Diversity Initiative, Top Talents, Key Experts), Leadership culture & develcpment (e.g. Siemens Leadership Excellence Programs, Global Learning Board), and our Perfcrmance Management...

  • Page 146
    ...The process also supports us in setting compensation, providing professional development opportunities and identifying both Top Talents and Key Experts. Closely associated with developing People Excellence is giving them strategic and challenging businesses to work in. Our trendsetting technologies...

  • Page 147
    ... 218 Managing Board statements, Independent auditors' report, Additional information 59 95 Net assets position 97 Report on post-balance sheet date events 98 Risk report 108 Information required pursuant to §315 (4) HGB of the German Commercial Code and explanatory report 114 Compensation report...

  • Page 148
    ...in the conduct of our own business. We currently aim to improve our 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position...

  • Page 149
    ... increase in gross fixed investment over the previous year's level. IHS Global Insight expects the value added manufacturing, in which Siemens operates, to decline by 9.3 % in 2009 compared to 2008. B25G002_E 218 Managing Board statements, Independent auditors' report, Additional information 61 95...

  • Page 150
    ... the transport equipment industry. All are expected 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 62 44 Business...

  • Page 151
    ... of non-strategic businesses. On a geographic basis, revenue grew in the Americas and in Asia, Australia but declined in Siemens' largest reporting region which comprises 218 Managing Board statements, Independent auditors' report, Additional information 63 95 Net assets position 97 Report on post...

  • Page 152
    ... year, driven by B25G025_E 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 64 44 Business and operating environment

  • Page 153
    ... 218 Managing Board statements, Independent auditors' report, Additional information 65 95 Net assets position 97 Report on post-balance sheet date events 98 Risk report 108 Information required pursuant to §315 (4) HGB of the German Commercial Code and explanatory report 114 Compensation report...

  • Page 154
    ... - our largest Sector - order intake decreased more than 20% compared to the high level of the prior year. All Industry Divisions reported lower orders, led by declines at Drive Technologies, Industry Solutions and Industry Automation. Due in part to customer postponements of potential new projects...

  • Page 155
    ... 218 Managing Board statements, Independent auditors' report, Additional information 67 95 Net assets position 97 Report on post-balance sheet date events 98 Risk report 108 Information required pursuant to §315 (4) HGB of the German Commercial Code and explanatory report 114 Compensation report...

  • Page 156
    ... the annual savings target under our global 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 68 44 Business and...

  • Page 157
    ... current period. For further information regarding the program successfully completed at the end of the fiscal year, see "Business and operating environment - Strategy - Important corporate programs and initiatives - Global SG&A program." Other operating income for fiscal 2009 was â,¬1.065 billion...

  • Page 158
    ... of Siemens AG was â,¬2.292 billion, down from â,¬5.725 billion in the prior-year period. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements...

  • Page 159
    ... project related charges at Mobility as well as structural initiatives at OSRAM and Mobility. B25T008_E 218 Managing Board statements, Independent auditors' report, Additional information 71 95 Net assets position 97 Report on post-balance sheet date events 98 Risk report 108 Information required...

  • Page 160
    ... the Building Technologies Division. B25T009_E the Division's low-voltage switchgear business is transferred 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated...

  • Page 161
    ...-year financial information has been reclassified accordingly. Building Technologies kept revenue in fiscal 2009 stable compared to the prior year, as the Division nearly offset a decline in Europe, C.I.S., Africa, Middle East with higher revenue in the Americas year-over-year. New orders declined...

  • Page 162
    ... the Americas. B25T012_E 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 74 44 Business and operating environment

  • Page 163
    ... Americas. Due to adverse macroeconomic and financing conditions, the Division's orders came in below the prior-year level. The decline was driven by substantially lower demand in Europe, C.I.S., Africa, Middle East, including lower volume from major orders. B25T013_E 218 Managing Board statements...

  • Page 164
    ... power technology company, to strengthen its position in the expanding market of solar thermal power. The acquisition costs (cash and debt free), amount to approximately â,¬280 million in cash consideration. on growth in the Americas and in Europe, C.I.S., Africa, Middle East, as the Division...

  • Page 165
    ... development for Healthcare overall, with revenue rising and orders coming in close to the prior-year level on particular strength in Asia, Australia and positive currency translation effects. 218 Managing Board statements, Independent auditors' report, Additional information 77 95 Net assets...

  • Page 166
    ... in the coming two years. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 78 44 Business and operating environment

  • Page 167
    ... higher levels of debt attributable to captive finance subsidiaries in determining long-term and short-term credit ratings. B25T020_E 218 Managing Board statements, Independent auditors' report, Additional information 79 95 Net assets position 97 Report on post-balance sheet date events 98 Risk...

  • Page 168
    ...regional payphone unit in 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 80 44 Business and operating environment

  • Page 169
    ... posted related to counter-party risks, principally involving banks affected adversely by developments in the international financial markets. 218 Managing Board statements, Independent auditors' report, Additional information 81 95 Net assets position 97 Report on post-balance sheet date events...

  • Page 170
    ... accounted for using the equity method, net. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 82 44 Business...

  • Page 171
    ... 218 Managing Board statements, Independent auditors' report, Additional information 95 Net assets position 97 Report on post-balance sheet date events 98 Risk report 108 Information required pursuant to §315 (4) HGB of the German Commercial Code and explanatory report 114 Compensation report 114...

  • Page 172
    ... on our financial and risk profile. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 84 44 Business and operating...

  • Page 173
    ... additional information with respect to share-based compensation and treasury shares, see "Notes to Consolidated Financial Statements." The target range for our capital structure ratio is 0.8 - 1.0. We set this target based on normal business cycles, unlike the current global recessionary conditions...

  • Page 174
    ... Long-term debt Short-term debt A1 P-1 A+ A -1 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 86 44 Business...

  • Page 175
    ... "Notes to Consolidated Financial Statements." Other companies that report Free cash flow may define and calculate this measure differently. 218 Managing Board statements, Independent auditors' report, Additional information 87 95 Net assets position 97 Report on post-balance sheet date events 98...

  • Page 176
    ... prior year. The cash provided in fiscal 2009 was due mainly to a higher net amount of outstanding long-term debt including our issuance of â,¬4.0 billion in medium-term notes. This was partly offset by 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial...

  • Page 177
    ...financial assets. Our capital requirements include, among others, scheduled debt service, regular capital spending, ongoing cash requirements from operating and SFS financing activities, dividend payments, pension plan funding, portfolio activities and capital requirements for our share buyback plan...

  • Page 178
    ... lines of credit remained unused. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 90 44 Business and operating...

  • Page 179
    ... market of solar thermal power. The acquisition costs (cash and debt free), amount to approximately â,¬280 million in cash consideration. B25G016_E 218 Managing Board statements, Independent auditors' report, Additional information 91 95 Net assets position 97 Report on post-balance sheet date...

  • Page 180
    ... our credit ratings at year-end we believe that we have sufficient flexibility to fund our capital requirements including for scheduled debt service, regular capital spending, ongoing cash requirements from operating and SFS financing activities, dividend payments, pension plan funding, portfolio...

  • Page 181
    ... end of the lease term amounting to â,¬36 million as of September 30, 2009. For additional information with respect to asset retirement obligations, see "Notes to Consolidated Financial Statements." In fiscal 2009, Siemens has reached an agreement with the trustees of its largest pension plan in UK...

  • Page 182
    ... continue to review the need for the implementation of similar plan designs outside Germany in the coming years to better control future benefit obligations and related costs. For more information on Siemens' pension plans, see "Notes to Consolidated Financial Statements." Pension funded status (in...

  • Page 183
    ...as well as strong Free cash flow from our Sectors. These factors were partly offset by the dividend payments of â,¬1.380 billion to the shareholders of Siemens AG, the reduction of short-term debt, the payment of â,¬1.008 billion to authorities in the U.S. and in Germany related to the resolution of...

  • Page 184
    ... of Siemens AG of â,¬2.292 billion was offset by dividend payments of â,¬1.380 billion and actuarial losses on pension plans and similar commitments of â,¬1.248 billion, among other factors. B25T032_E 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial...

  • Page 185
    ... 2009, when we generated strong free cash flow despite difficult market conditions. Our commitment to a strong financial profile was evident in fiscal 2009. Our balance sheet remained strong, with nearly no change in net debt compared to the prior year, continuing access to capital market financing...

  • Page 186
    ... milestones and clearly 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 98 44 Business and operating environment

  • Page 187
    ... to our revenues, results of operations, financial condition and ability to access capital. For example, in addition to a general decline in de- 218 Managing Board statements, Independent auditors' report, Additional information 99 95 Net assets position 97 Report on post-balance sheet date events...

  • Page 188
    ...markets and to reduce the costs of producing high- 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 100 44 Business...

  • Page 189
    ... by our equity investments and strategic alliances that may have a negative effect on our business. In 218 Managing Board statements, Independent auditors' report, Additional information 101 95 Net assets position 97 Report on post-balance sheet date events 98 Risk report 108 Information required...

  • Page 190
    ... compete in some business areas with companies with which we have strategic alliances. OPERATIONS RISKS Our financial results and cash flows may be adversely affected by cost overruns or additional payment obligations related to the management of our long-term, fixed price or turn-key projects: We...

  • Page 191
    ... the Company and our Sectors and Cross-Sector Businesses. A negative development in the capital markets could increase our cost of debt capital. The developments in the subprime mortgage market in the U.S. and the worldwide financial market crisis have had a global impact on the capital markets with...

  • Page 192
    ...on the funded status was only partly compensated by the actual return on plan assets, which significantly exceeded the expected return. Both factors, discount rate and actual return, are being significantly influenced by the conditions in the global financial markets. For additional information, see...

  • Page 193
    ... effect on the development of future business opportunities, our financial results and condition, the price of our shares and ADSs and our reputation: Public prosecutors and other government authorities in jurisdictions around the world are investigating allegations of corruption at a number of our...

  • Page 194
    ... rights. Furthermore, as a globally operating organization, we also conduct business with customers in countries subject to export controls, embargos or other forms of trade restrictions imposed by U.S., the European Union or other countries or organizations. Future interpretations or developments...

  • Page 195
    ... 218 Managing Board statements, Independent auditors' report, Additional information 107 95 Net assets position 97 Report on post-balance sheet date events 98 Risk report 108 Information required pursuant to §315 (4) HGB of the German Commercial Code and explanatory report 114 Compensation report...

  • Page 196
    ...date of birth, or in the case of legal entities, their company name, business address and registered offices. All shares confer the same rights and obligations. At the Annual Shareholders' Meeting, each share of stock has one vote and accounts for the shareholders' proportionate share in the Company...

  • Page 197
    ... OF CONTROL There are no shares with special rights conferring powers of control. According to §8 (1) of the Articles of Association, the Managing Board is comprised of several members, the number of which is determined by the Supervisory Board. Pursuant to §84 of the German Stock Corporation Act...

  • Page 198
    ... price if the arithmetic mean 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 110 44 Business and operating...

  • Page 199
    ... September 30, 2009 see "Notes to Consolidated Financial Statements." Based on a resolution of the Annual Shareholders' Meeting on January 24, 2008, the Company was authorized to repurchase until July 23, 2009 up to 10% of its 914,203,421 shares of capital stock existing at the date of adopting the...

  • Page 200
    ...compensation for purchase to members of the Managing Board of Siemens AG under the same terms and conditions as those offered to employees of the Company, or to grant and transfer them with a holding period of at least two years. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance...

  • Page 201
    ... to a Managing Board member's retirement. Managing Board members' employment contracts entered into in or after June 2008 provide that severance payments in the event of a change of control are limited to the amount recommended by the German Corporate Governance Code. COMPENSATION AGREEMENT S WITH...

  • Page 202
    ... Statements, the Compensation report is part of the audited Consolidated Financial Statements. The Compensation report is presented within the section "Corporate Governance", included in this Annual Report for the fiscal year 2009. Report on expected developments WORLDWIDE ECONOM Y The global...

  • Page 203
    ... replacement technologies in the developed world and increased environmental awareness generally. The market for the fossil power generation business, which was slowing in fiscal 2009, could start to recover toward 218 Managing Board statements, Independent auditors' report, Additional information...

  • Page 204
    ... our environmental port- 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 116 44 Business and operating environment

  • Page 205
    .... The Healthcare Sector plans to continue investing in development of software and IT solutions, primarily relating to imaging systems, and in developing its markets for clinical diagnostics solutions. For our medium-term capital structure, we seek a ratio of adjusted industrial net debt to adjusted...

  • Page 206
    ... in cost savings annually by 2011 and â,¬400 million in annual savings from 2014 onward. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements...

  • Page 207
    ... "Business and operating environment-Strategy-Important corporate programs and initiatives-Supply Chain Management initiative." The realignment of our sales and marketing activities on a global basis in our cluster structure may also represent an opportunity to improve our profitability. By sharing...

  • Page 208
    ...our risk factors, see "Risk report." 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 63 Fiscal 2009 - Financial summary 44 Management's discussion and analysis 66 Results of operations 122 Consolidated Financial Statements 84 Financial position 120 44 Business and operating...

  • Page 209
    ... growth rates of Revenue and new orders; book-to-bill ratio; return on equity, or ROE; return on capital employed, or ROCE; Free cash flow; cash conversion rate, or CCR; EBITDA (adjusted); EBIT (adjusted); earnings effect from purchase price allocation (PPA effects) and integration costs; net debt...

  • Page 210
    ... 6.39 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 211
    ...interests relating to actuarial gains and losses on pension plans and sigilar coggitgents of â,¬(1) and â,¬(3) for the fiscal years ended Septegber 30, 2009 and 2008, respectively. The accogpanying Notes are an integral part of these Consolidated Financial Stategents. 218 Managing Board statements...

  • Page 212
    ...,463 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 213
    ...-for-sale financial assets, accounted for using the equity gethod or classified as held for disposal. Purchase of Investments includes certain loans to Investgents accounted for using the equity gethod. The accogpanying Notes are an integral part of these Consolidated Financial Stategents. 125...

  • Page 214
    ...,646 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 215
    ...assets Derivative financial instrugents Total Treasury shares at cost Total equity attributable to shareholders of Siegens AG Minority interest Total equity... 218 Managing Board statements, Independent auditors' report, Additional information 127 126 Notes to Consolidated Financial Stategents

  • Page 216
    ... by (used in) operating activities less additions to intangible assets and property, plant and equipgent. Free cash ï¬,ow of the Sectors, Equity Investments, Siemens IT Solutions and Services and Other Operations prigarily exclude incoge tax, financing interest and certain pension related paygents...

  • Page 217
    ... pensions to Corporate Treasury and the operation Electronics Assegbly Systegs which was reclassified frog Industry to Other Operations. Due to rounding, nugbers presented gay not add up precisely to totals provided. B26T006 218 Managing Board statements, Independent auditors' report, Additional...

  • Page 218
    ... and reports its Consolidated Financial Statements in euros (â,¬). Siemens is a German based multinational corporation with a balanced business portfolio of activities predominantly in the field of electronics and electrical engineering (for further information see Note 37). A separate List of...

  • Page 219
    ... countries used in the preparation of the Consolidated Financial Statements were as follows: Year-end exchange rate â,¬1 vuoted into currencies specified below September 30, Currency ISO Code 2009 2008 Annual average rate â,¬1 vuoted into currencies specified below Fiscal year 2009 2008 leases...

  • Page 220
    .... 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 221
    ... statement, unless related to items directly recognized in equity, in the period the new laws are substantively enacted. Deferred tax assets are recognized to the extent that it is probable that future tax- Impairment of property, plant and equipment and other intangible assets with finite useful...

  • Page 222
    ...material and labor and applicable manufacturing overheads, including depreciation charges. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. Defined benefit plans - Siemens measures the entitlements of...

  • Page 223
    ..., the trade date is applied. asset is impaired, the cumulative loss that has been recognized in equity is removed from equity and recognized in the Consolidated Statements of Income. The Company considers all available evidence such as market conditions and prices, investee-specific factors and the...

  • Page 224
    ... 1, 2009. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash...

  • Page 225
    ...Siemens Financial Services (SFS), which performs such reviews on behalf of the Company 's Managing Board. In addition, to qualify for such accounting, at a minimum, a custom- 218 Managing Board statements, Independent auditors' report, Additional information 137 126 Notes to Consolidated Financial...

  • Page 226
    ... successful integration of acquired entities, volatility of capital and commodity markets and economic conditions and foreign exchange rate estimates. The recoverable amount is the higher of the division's fair value less costs to sell and its value in use. The Company generally uses discounted cash...

  • Page 227
    ...74 to patented and unpatented technology with a weighted average useful life of 11 years. 218 Managing Board statements, Independent auditors' report, Additional information 139 126 Notes to Consolidated Financial Stategents (in gillions of â,¬, except where otherwise stated and per share agounts)

  • Page 228
    ...for using the equity method, net (see Note 8). 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements...

  • Page 229
    ... end of May 2008, the Company sold its Wireless Modules Business, which was part of the Sector Industry 's Industry Automation Division. The transaction resulted in a pre-tax gain of â,¬131, net of related costs, which is included in Other operating income. B27T004_E 218 Managing Board statements...

  • Page 230
    ... for the German part of SG&A and related programs which is due to a change in estimate on the respective program measures, i.e. more intensive use of the early retirement arrangements as compared to severance payments in conjunction with transfer companies. In fiscal 2009, restructuring costs for...

  • Page 231
    .... The main triggering events were NSN's loss of market share as well as a decrease in the product business operations resulting in significantly adjusted financial forecasts of future cash flows of NSN. The NSN impairment test is based on fair value less costs to sell applying a discounted cash flow...

  • Page 232
    ... of interest relating to corporate debt, interest results of interest-rate-swaps used as hedging instruments in hedge accounting relationships with financial assets and financial liabilities as well as interest income on corporate assets. Expected return on plan assets Interest cost Income (expense...

  • Page 233
    ... negotiations of legal matters with authorities in the U.S. (settled in fiscal 2009). B27T014_E 218 Managing Board statements, Independent auditors' report, Additional information 145 126 Notes to Consolidated Financial Stategents (in gillions of â,¬, except where otherwise stated and per...

  • Page 234
    ... 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 235
    ... 30, 2009 Cost Fair Value Unrealized Gain Unrealized Loss 1 Other companies, in the context of the above line item, are those in which Siemens has an ownership interest of less than 20% and exercises no significant influence over their operating and financial policies. Equity instruments Debt...

  • Page 236
    ... 2009 2008 2009 2010 2011 2012 2013 2014 After 2014 in fiscal 2009 (after 2013 in fiscal 2008) Minimum future lease payments to be received 2,084 1,450 978 597 280 173 5,562 2,067 1,482 1,093 627 326 Investments in finance leases primarily relate to equipment for information technology and office...

  • Page 237
    ... Balance at year-end Net book value Balance at beginning of year Balance at year-end 554 (12) 32 (78) 496 1,088 (16) 78 (596) 554 16,004 15,821 12,501 16,004 B27T028_E 218 Managing Board statements, Independent auditors' report, Additional information 149 126 Notes to Consolidated Financial...

  • Page 238
    ...purchase accounting adjustments 1 Dispositions and reclassifications to Assets classified as held for disposal Impairments Net book value as of 9/30/2009 Sectors Industry Energy Healthcare Cross-Sector Businesses Siemens IT Solutions and Services Siemens Financial Services (SFS) Other Operations...

  • Page 239
    ... the fair value less costs to sell of the divisions, cash flows were projected based on past experience, actual operating results and management's best estimate about future developments as well as market assumptions. The Fair value less costs to sell is mainly determined by the terminal value which...

  • Page 240
    ... assets amount to â,¬35 and â,¬37. B27T036_E 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements...

  • Page 241
    ...As of September 30, 2009 and 2008, contractual commitments for purchases of property, plant and equipment amount to â,¬336 and â,¬463, respectively. B27T038_E 218 Managing Board statements, Independent auditors' report, Additional information 153 126 Notes to Consolidated Financial Stategents (in...

  • Page 242
    ... is no jointly controlled entity because of two additional shareholders. Payments from lessees under operating leases primarily relate to buildings, data processing and phone equipment as well as to medical equipment. The investments in Areva and FSC have been classified as assets held for disposal...

  • Page 243
    ... associated and other companies (defined in Note 12) Trade receivables from sale of goods and services Available-for-sale financial assets Other 3,147 2,142 1,594 787 452 391 1,517 10,030 3,486 1,417 404 45 471 551 1,411 7,785 B27T044_E 218 Managing Board statements, Independent auditors' report...

  • Page 244
    ... Reports Supervisory Board / Managing Board B27T049_E 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 245
    ... EUR 2,000 2,031 2,031 - 12,966 Other 2 16,502 1 Includes adjustments for fair value hedge accounting. 218 Managing Board statements, Independent auditors' report, Additional information 126 Notes to Consolidated Financial Stategents (in gillions of â,¬, except where otherwise stated and per...

  • Page 246
    ... 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 247
    ... the Company. In order to fund Siemens' pension obligations, the Company 's major pension plans are funded with assets in segregated pension entities. Furthermore, the Company provides other post-employment benefits, which primarily consist of transition payments to German employees after retirement...

  • Page 248
    ...of benefits under the majority of these plans. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements...

  • Page 249
    ... value of plan assets, DBO and funded status were â,¬21,581, â,¬24,972 and â,¬(3,391). B27T054_E 218 Managing Board statements, Independent auditors' report, Additional information 161 126 Notes to Consolidated Financial Stategents (in gillions of â,¬, except where otherwise stated and per share...

  • Page 250
    ... plans. The positive effect of a discount rate increase in fiscal 2008 was partly offset by an increase in pension progression and compensation increase rate as well as by experience adjustments. B27T055_E 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated...

  • Page 251
    ... and SEN liabilities and pension assets. These effects are included in the items Divestments and Divestments and other in the preceding two tables. B27T056_E 218 Managing Board statements, Independent auditors' report, Additional information 163 126 Notes to Consolidated Financial Stategents (in...

  • Page 252
    ... 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 253
    ... rates used in calculating the DBO together with long-term rates of return on plan assets vary according to the economic conditions of the country in which the retirement plans are situated or where plan assets are invested as well as capital market expectations. The weighted-average discount rate...

  • Page 254
    ...Actual return on plan assets 1,906 1,546 360 (2,177) (1,627) (550) 6 Reports Supervisory Board / Managing Board B27T060_E 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122...

  • Page 255
    ...benefit payments for Siemens' principal funded pension benefit plans reduce the DBO and plan assets by the same amount, there is no impact on the funded status of such plans. 218 Managing Board statements, Independent auditors' report, Additional information 167 126 Notes to Consolidated Financial...

  • Page 256
    ...B27T064_E 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 257
    ...SEN pension liabilities and â,¬2 other net periodic pension cost of SV and SEN. B27T066_E 218 Managing Board statements, Independent auditors' report, Additional information 169 126 Notes to Consolidated Financial Stategents (in gillions of â,¬, except where otherwise stated and per share agounts...

  • Page 258
    ...2010 4.00% 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash...

  • Page 259
    ... 1 to 15 years. Warranties mainly relate to products sold. See Note 2 for further information concerning our policy for estimating warranty provisions. 218 Managing Board statements, Independent auditors' report, Additional information 126 Notes to Consolidated Financial Stategents (in gillions...

  • Page 260
    ...for the estimated costs associated with final storage in 2033. The Company recognizes the accretion of the provision for asset retirement obligations using the effective interest method applying current interest rates prevailing at the balance sheet date. During the year ended September 30, 2009 and...

  • Page 261
    ... par value shares with a notional value of â,¬3.00 per share. Each share of common stock is entitled to one vote. The following table provides a summary of outstanding capital and the changes in authorized and conditional capital for fiscal years 2009 and 2008: Employee related liabilities Deferred...

  • Page 262
    ... shares to the members of the Managing Board of the Company for purchase as stock-based compensation under the same terms and conditions as those offered to employees of the Company or to grant and transfer such shares to members of the Managing Board with a holding period of at least two years...

  • Page 263
    ...Stock Corporation Act (Aktiengesetz), the amount of dividends available for distribution to shareholders is based upon the earnings of Siemens AG as reported in its statutory financial statements determined in accordance with the German Commercial Code (Handelsgesetzbuch). In fiscal 2009, Siemens AG...

  • Page 264
    .... As part of our Fit42010 program, we decided to improve our capital structure. A key consideration is to maintain ready access to capital markets through various debt products and to preserve our ability to repay and service our debt obligations over time. We therefore set a capital structure goal...

  • Page 265
    ...year. In addition, Moody 's Investors Service published a credit opinion for us. The most recent credit opinion as of June 10, 2009 classified the liquidity profile as "very healthy." On June 5, 2009, Standard & Poor's downgraded our corporate long-term credit rating from AA- to A+. At the same time...

  • Page 266
    .... 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 267
    ... Siemens employees regarding allegations that they participated in bribery related to the awarding of an EU contract for the refurbishment of a power plant in Serbia in 2002. 218 Managing Board statements, Independent auditors' report, Additional information 179 126 Notes to Consolidated Financial...

  • Page 268
    ... not 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 269
    ... assistance from the Munich prosecutor and the federal court in New York. On August 17, 2009, the Anti-Corruption Commission of Ban- As previously reported, the Norwegian anti-corruption unit, Oekokrim, conducted an investigation against Siemens AS Norway and two of its former employees related...

  • Page 270
    ... Company in press releases, Siemens AG is asserting claims for damages against former members of the Managing and Supervisory Board. The Company bases its claims on breaches of organizational and supervisory duties in view of the accusations of illegal business practices that occurred in the course...

  • Page 271
    ... allegations that relate to the German market. Power transformers are electrical equipment used as major components in electric transmission systems in order to adapt voltages. The Company is cooperating in the ongoing investigation with the European Commission and the German Antitrust Authority...

  • Page 272
    ... in- 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 273
    ... subsequently reduced to a period of four months, and in June 2009 the Company was finally informed by the 218 Managing Board statements, Independent auditors' report, Additional information 185 126 Notes to Consolidated Financial Stategents (in gillions of â,¬, except where otherwise stated and...

  • Page 274
    ...procedure. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash...

  • Page 275
    ... for trading Derivatives designated in a hedge accounting relationship 28,539 864 134 29,537 26,337 1,004 401 27,742 The following table presents the fair values and carrying amounts of financial assets and liabilities measured at cost or amortized cost: 218 Managing Board statements, Independent...

  • Page 276
    ... under finance leases as well as other noncurrent financial liabilities is estimated by discounting future cash flows using rates currently available for debt of similar terms and remaining maturities. B27T082_E 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated...

  • Page 277
    ...currency exchange derivatives Interest rate derivatives Embedded derivatives 998 731 4 4 - 130 130 - 133 1,405 860 70 18 52 331 331 - 144 Credit default swaps - The fair value of credit default swaps is calculated by comparing discounted expected future cash flows using current bank conditions with...

  • Page 278
    ...1,405 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash Flow...

  • Page 279
    ... Changes in fair value of the forward exchange contracts as well as of the firm commitments were recorded in Cost of goods sold and services rendered. 218 Managing Board statements, Independent auditors' report, Additional information 191 126 Notes to Consolidated Financial Stategents (in gillions...

  • Page 280
    ... into. As long as hedge accounting was applied, the interest rate swap contracts and the related portion of the Available-for-sale financial assets were reflected at fair value in the Company 's Consolidated Balance Sheets. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123...

  • Page 281
    ... its regular operating and financing activities, and uses derivative instruments when deemed appropriate. Management of financial market risk is a key priority for Siemens' Managing Board. As a member of this Board, the Chief Financial Officer covers the specific responsibility for this part of the...

  • Page 282
    ... IPOs of strategic venture capital investments or compensation from M&A transactions. The equity investments are monitored based on their current market value, affected by the fluctuations in the volatile stock markets worldwide. The market value of Siemens' portfolio in publicly traded companies as...

  • Page 283
    ... in the Company 's consolidated equity position. Interest rate risk Siemens' interest rate risk exposure is mainly related to debt obligations like bonds, loans, commercial paper programs and interest-bearing deposits and investments. Siemens seeks to limit this risk through the use of derivative...

  • Page 284
    ... commercial paper, mediumterm notes, bonds, loans from banks and obligations under finance leases, less cash and cash equivalents as well as current available-for-sale financial assets traded in an active market, as stated on the consolidated balance sheet. September 30, 2009 2008 Short-term debt...

  • Page 285
    ...the years ended September 30, 2009 and 2008, respectively, and refers primarily to equity-settled awards, including the Company 's employee share purchase program. 218 Managing Board statements, Independent auditors' report, Additional information 197 126 Notes to Consolidated Financial Stategents...

  • Page 286
    ... Base Share Program, members of the Managing Board and employees of Siemens AG and participating Siemens' companies could purchase a limited number of Siemens shares at a preferential price once a year. Up to a stipulated date in the first quarter of the fiscal year, employees were allowed to order...

  • Page 287
    ... Managing Board and to employees of Siemens AG and Siemens' companies. Plan participants may invest a certain percentage of their compensation in Siemens shares at a predetermined price set at the resolution date (investment shares). In exchange, plan participants receive the right to one free share...

  • Page 288
    ... to reliably estimate the fair value of those options at the grant date, compensation costs are determined based on As part of a stock option plan for members of the Managing Board, key executives and other eligible employees, the Company 's shareholders authorized the Managing Board on February...

  • Page 289
    ... following table summarizes information on stock options outstanding at September 30, 2009 and 2008: Fair value information The Company 's determination of the fair value of stock option grants is based on an option pricing model which was developed for use in estimating the fair values of options...

  • Page 290
    ... support payments Expenses relating to pension plans and employee benefits 20,320 3,353 996 24,669 21,486 3,256 904 25,646 Expenses relating to pension plans and employee benefits include service costs for the period. Expected return on plan assets and interest cost are included in Financial...

  • Page 291
    ...as to the public sector. Siemens IT Solutions and Services builds and operates both discrete and large-scale information and communications systems. B27T095_E 218 Managing Board statements, Independent auditors' report, Additional information 203 126 Notes to Consolidated Financial Stategents (in...

  • Page 292
    ... Siemens IT Solutions and Services and interest expense on payables to suppliers. Financing interest is excluded from Profit because decision-making regarding financing is typically made at the Corporate level. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated...

  • Page 293
    ... not part of the audited Consolidated Financial Statements. Free cash flow definition: Segment Information discloses Free cash flow and Additions to intangible assets, property, plant and equipment. Free cash flow of the Sectors, Equity Investments, and Siemens IT Solutions and Services constitutes...

  • Page 294
    ... financial assets. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents...

  • Page 295
    ... of property, plant and equipment, goodwill and other intangible assets. Revenue by location of customer 2009 2008 1 Revenue by location of companies 2009 2008 1 Europe, C.I.S., Africa, Middle East Americas Asia, Australia Siemens thereof Germany thereof foreign countries thereof U.S. 43,288 20...

  • Page 296
    ... payments. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 123 Consolidated Stategents of Incoge and Expense Recognized in Equity 44 Management's discussion and analysis 124 Consolidated Balance Sheets 122 Consolidated Financial Statements 125 Consolidated Stategents of Cash...

  • Page 297
    ... the Managing Board of Siemens AG and sets out the level and structure of Managing Board remuneration. In addition, the report describes the policies and levels of compensation paid to Supervisory Board members. The Compensation Report, which is part of the Notes to Consolidated Financial Statements...

  • Page 298
    ...Training regarding accounting-related topics Comfort letters Employee benefit plan audits SAS 70 reports In fiscal 2009, the Audit Committee has pre-approved the performance by E&Y of the following audit and audit-related services: â-ª â-ª 6 Reports Supervisory Board / Managing Board 16 Corporate...

  • Page 299
    ... services unless there is a compelling advantage to the Company in using the principal accountant and it can clearly be shown that there is no impairment of independence. 218 Managing Board statements, Independent auditors' report, Additional information 211 126 Notes to Consolidated Financial...

  • Page 300
    ... Member of the Central Works Council, Siemens AG; Deputy Chairman of the Siemens Europe Committee Date of birth: March 16, 1960 Member since: January 24, 2008 212 6 Reports Supervisory Board / Managing Board 122 Consolidated Statements of Income 16 Corporate Governance 123 Consolidated Statements...

  • Page 301
    ... replaced an employee representative who had resigned from the Supervisory Board. The Supervisory Board is elected for five years. As of September 30, 2009 218 Managing Board statements, Independent auditors' report, Additional information 126 Notes to Consolidated Financial Statements (in millions...

  • Page 302
    ... internal company policies (compliance). 1 Audit committee financial expert as defined by the Sarbanes-Oxley Act 214 6 Reports Supervisory Board / Managing Board 122 Consolidated Statements of Income 16 Corporate Governance 123 Consolidated Statements of Income and Expense Recognized in Equity...

  • Page 303
    ... and (5) of the German Codetermination Act Further information on corporate governance at Siemens is available at: www.siemens.com/corporate-governance 218 Managing Board statements, Independent auditors' report, Additional information 126 Notes to Consolidated Financial Statements (in millions of...

  • Page 304
    ...Siemens Corp., USA Siemens Ltd., China Siemens Ltd., India The Siemens company structure is shown on the foldout inside the back cover of this financial report. As of September 30, 2009 216 6 Reports Supervisory Board / Managing Board 122 Consolidated Statements of Income 16 Corporate Governance...

  • Page 305
    ... information on corporate governance at Siemens is available at: www.siemens.com/corporate-governance 218 Managing Board statements, Independent auditors' report, Additional information 126 Notes to Consolidated Financial Statements (in millions of â,¬, except where otherwise stated and per share...

  • Page 306
    ...including employee training and continuing education, with the intention that its financial reporting is conducted in accordance with accepted accounting principles. The members of the managements of the Sectors and CrossSector Businesses as well as the chief executives of the Siemens companies have...

  • Page 307
    ... Public Auditor] Krämmer Wirtschaftsprüfer [German Public Auditor] 218 Managing Board statements , In dependent auditors' report , Additional information 219 222 Glossary 225 Index 229 Information resources 230 Siemens' financial calendar 231 Company structure 233 In dialogue with our investors

  • Page 308
    ... shares oubsbanding. 8 Changed from AA - bo A + on June 5, 2009. 6 Reports Supervisory Board / Managing Board 16 Corporate Governance 218 Responsibiliby sbabemenb 44 Management's discussion and analysis 219 Independenb audibors' reporb 122 Consolidated Financial Statements 220 Five-year summary...

  • Page 309
    ....9 60.7 1 Prepared in accordance wibh bhe German Commercial Code (HGB). 218 Managing Board statements, Independent auditors' report, Additional information 221 222 Glossary 225 Index 229 Informabion resources 230 Siemens' financial calendar 231 Company sbrucbure 233 In dialogue wibh our invesbors

  • Page 310
    ... related to the financial management of operations. The cost of capital represents the minimum return expected by the providers of capital. For equity providers this includes the expected increase in the value of a company's share. Total long-term debt divided by total shareholders' equity. Assets...

  • Page 311
    ... long-term rate of return on pension plan assets F Free cash flow Functional costs Funded status of pension plan G GASC German GAAP Goodwill H Hedging Hybrid bond I IFRS J Joint venture Leasing Medium-term note program L M Moody's Investors Service N Net cash from operating and investing...

  • Page 312
    ... most publicly owned corporations in connection with the buying and selling of stocks and bonds. Independent rating agency that provides evaluation of securities investment and credit risk. Form of employee incentive and compensation. The employee is given an option to purchase a company's shares if...

  • Page 313
    ... Corporate Governance Code Demographic change and healthcare Diagnostics Differences from NYSE Standards Dividend Drive Technologies Earning per share Economic environment Employees Energy Sector Energy Service Equity and Employee Stock Committee Equity Investments 218 Managing Board statements...

  • Page 314
    ... report Information resources Innovation Investor relations Key figures Legal proceedings Letter to our Shareholders Management and control structure Management's discussion and analysis (MD&A) Managing Board committee Managing Board of Siemens AG Mediation Committee Mobility Nokia Siemens Networks...

  • Page 315
    ... AG Supply Chain Management Sustainability Urbanization and sustainable development Workflow & Solutions 218 Managing Board statements, Independent auditors' report, Additional information 227 222 Glossary 225 Index 229 Information resources 230 Siemens' financial calendar 231 Company structure...

  • Page 316

  • Page 317
    ... processes. Employees should be sure to include postal address and complete order data (Org-ID and cost center information). In addition to an Annual Report at the end of each fiscal year, Siemens publishes quarterly consolidated financial statements in the form of press releases. Conference...

  • Page 318
    ... Press conference Annual Shareholders' Meeting for fiscal 2010 Jan. 26, 2010 Jan. 26, 2010 Jan. 27, 2010 Apr. 29, 2010 July 29, 2010 Nov. 11, 2010 Jan. 25, 2011 1 Provisional. Updates will be posted at: www.siemens.com/financial-calendar 6 Reports Supervisory Board / Managing Board 16 Corporate...

  • Page 319
    ... dividend policy for our investors in the future. 1 To be proposed at the Annual Shareholders' Meeting 2 Anticipated dividend payment/Net income Stock market information (in euros) 2009 1 2008 1 Stock price range (Xetra closing prices, Frankfurt) 100 High Low Year-end Number of shares (year-end...

  • Page 320
    ...Middle East Peter Y. Solmssen Corporate Legal and Compliance Americas Corporate Communications and Government Affairs Corporate Development Siemens Financial Services Siemens IT Solutions and Services Equity Investments Siemens Real Estate Industry fectgr I Heinrich Hiesinger Industry Automation...

  • Page 321
    Barbara Kux Corporate Supply Chain Management Corporate Sustainability Global Shared Services Heinrich Hiesinger Industry Corporate Information Technology Wolfgang Dehen Energy Asia, Australia Hermann Requardt Healthcare Corporate Technology Healthcare fectgr I Hermann Requardt Imaging & IT I ...

  • Page 322
    www.siemens.com Siemens Aktiengesellschaft Order no. A19100-F-V79-X-7600