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92 A. To our Shareholders
117 B. Corporate Governance 155 C. Combined Management Report
156 C. Business and economic environment
173 C. Financial performance system
179 C. Results of operations
192 C. Financial position
204 C. Net assets position
207 C. Overall assessment of the economic position
209 C. Subsequent events
210 C. Sustainability
227 C. Report on expected developments and
associated material opportunities and risks

Another major focus is promoting more efficient energy use in
buildings, industrial facilities, and the transport sector. Exam-
ples include the development of electric drives and mass
transportation systems such as local and long-distance trains
and subways.
Across all focus areas, we recognize the vital importance of
sophisticated software solutions. This is true not just for the
areas mentioned above but also in nearly all of the other fields
in which Siemens is active. Siemens software was used, for ex-
ample, to virtually develop, build, test, and continually opti-
mize the Mars rover Curiosity, before it was built. Curiosity
landed on Mars in August .
R&D activities are carried out by both our Sectors and our
Corporate Technology (CT) department. The Sectors focus their
R&D efforts on the next generations of their products and solu-
tions. In contrast, the aim of CT is to work with our operating
units to develop the Group’s technology and innovation strate-
gies, especially for the next generation of their products and
solutions. In addition, CT helps secure our technological and
innovational future.
CT is a worldwide network with primary locations in Germany,
the U.S., China, Russia, India, and Austria. The more than
, CT employees contribute their in-depth understanding
of fundamental technologies, models, and trends, as well as
their wealth of software and process expertise. CT strives to
secure the technological and innovative future through com-
monly developed core technology initiatives such as future of
automation, data to business or system integration. With its
global network of experts, our corporate research unit serves
as a strategic partner for Siemens’ operating units. CT makes
important contributions along the entire value chain, from re-
search and development to production technology, manufac-
turing processes, and the testing of products and solutions. CT
is also networked with leading universities and research insti-
tutes worldwide. The principal objectives of these close collab-
orations with strong external partners are:
> leveraging the potential of joint R&D projects,
> establishing and further developing a network of universities
and research institutes that Siemens closely cooperates
with, as well as systematically enhancing communication
with these institutions, and
> strengthening Siemens’ attractiveness as an employer of
choice for highly qualified young talents in scientific and
technical disciplines.
Such new collaborative approaches are also a substantial part
of our Open Innovation (OI) concept, in which we receive in-
put from internal as well as external experts that significantly
contributes to the innovative power of the Company. With OI
we aim to overcome the barriers of silo thinking, to prove and
truly leverage the potential of an open network enterprise.
Since , when the first OI project was launched, ,
employees from more than  countries have participated in
nine internal OI pilot projects and our external efforts have
mobilized more than , external solvers on  projects.
The technology fields addressed by OI cover all technological
areas of Siemens. They include:
> research on materials that help make our products more
efficient;
> the creation of IT platforms, IT security solutions, software
architecture, technical systems, energy technologies,
sensors, and electronic components; and
> research into new solutions for system engineering, data
analysis, automation and communication technologies,
medical information systems, and imaging processes.
In addition, Siemens takes part in publicly funded research
programs. The most important research areas include the de-
velopment of sustainable technologies including recycling,
the communication of machines, the creation of new materi-
als and bio-technology.
CT offers extensive process and production consulting services
for development and manufacturing units at Siemens. CT em-
ploys more than , software developers at locations in
Asia, Europe, and the Americas. These specialists help our
Business Units develop concepts from the initial idea to the
finished product.
CT strategically handles the intellectual property of Siemens.
Around  experts help the Company register patents and
trademarks, establish them, and put them to profitable use.
C... RESEARCH AND DEVELOPMENT FIGURES
In fiscal , we reported research and development expens-
es of €. billion, compared to €. billion in fiscal 
and €. billion in fiscal . The resulting R&D intensity,
defined as the ratio of R&D expenses and revenue, was .%,
above the R&D intensity in fiscal  and fiscal .