ML20135A011
| ML20135A011 | |
| Person / Time | |
|---|---|
| Site: | Framatome ANP Richland |
| Issue date: | 12/31/1995 |
| From: | Franz I SIEMENS CORP. |
| To: | |
| Shared Package | |
| ML19310E909 | List: |
| References | |
| NUDOCS 9612030026 | |
| Download: ML20135A011 (74) | |
Text
SEMENS Annual Report'95 y
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Contents O
2 Report of the Supervisory Board 4 Letter to our shareholders 8 Managing Board's general review 14 Employees Review of operations 16 Energy 20 industry 24 Communications 28 information 30 Transportation 34 Health care 36 Components 40 Lighting 42 Bosch Siemens Hausgerute GmbH 44 Siemens on the financial markets 46 Consolidated financial statements 66 Five-year summary 68 The Company 69 Supervisory Board O
Siemens at a g ance
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88,371
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Sales 84,598.
+5%
Employees 1
. 376'000
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) Capital expenditures and investments ~
hf 5,721
+ 30% '
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Research and development 1s$$ist$2S&"
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s Net income hiV; 7
1,649.
+ 26%
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(as a percent of sales)
Ifh'h i e-Net income 1,993
+5%
including extraordinary gain fN$g.,byff;%
- (as a percent of shareholders' equity)
-(9,4).
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728 Totaldividend of Siemens AG 1
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Re3or:o":le Suaervisory 30 arc 9
Perhaps as never before in its 150-year history, Siemens faces new and funda-mental changes in its business environment. National markets in the developed world have initiated programs of deregulation and liberalization which will permanently alter traditional purchasing approaches. In production, Central and Eastern Europe have emerged as low-cost alternatives, while Southeast Asian markets have merged high-tech skills with lower pricing. These developments are occurring against a backdrop of an unrelenting demand for productivity gains, accelerating innovation in microelectronics, software and f'
engineering, and continuous fluctuations in currency values.
p % Me, M% -
At our four regularly scheduled meetings and on numerous
~1 other occasions, we discussed with the Managing Board the d
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measures needed to meet these daunting challenges.
.J Engineering and technological prowess, global market position, comprehensive familiarity with customer and market needs, Ef% wm,g a solid financial base and 370,000 highly skilled and motivated employees-these are only a few of the key strengths Sie possesses for succeeding in this tough business arena. We are confident that Managing Board is using every tool at its disposal to secure the Company's future global competitiveness.
At our two-day summer meeting in Brussels, we discussed economic, techno-logical and political trends in our European home market, and what consequences these may have for Siemens. We also had opportunities to talk with members of the EU Commission and the European Parliament. In November 1994, shortly after the meeting of our Corporate Executive Committee in Singapore, we reviewed the Company's general commitment to the Asian markets and all its ramifications.
l We examined special status reports on the Company's semiconductor activities.
After years of closin0 the technological gap with competitors and implementing extensive restructuring measures, the business is generating solid profits. Positive market trends will require additional substantial investments in this sector.
Siemens Nixdorf Informationssysteme AG (SNI) has also made major progress toward recovery. The company has built up a strong base of world-class expertise and professionalism in the field of information technology, a core business for Siemens. We are convinced that SNI is well positioned to overcome further chal-lenges in this difficult industry.
The plant and project-oriented Power Generation (KWU), Power Transmission Distribution, Industrial and Building Systems and Transportation Systems Gro have been impacted by cost pressure and structural changes in their markets. The Managing Board elucidated the specific measures that have been taken to ensure continuing success in these sectors.
O The Presidency of the Supervisory Board directed special attention to the Company's transactions with derivative financial instruments, and was given detailed information by Corporate Finance regarding the rigorous risk controls used in this area.
The Company's accounting procedures, the annual financial statements of Siemens AG and the consolidated financial statements as of September 30,1995, as well as the Managing Board's combined general review of Siemens AG and Siemens worldwide consolidated, have been audited and approved without qualification by KPMG Deutsche Treuhand-Gesellschaft AG Wirtschaftspr0fungsgesellschaft, Berlin and Frankfurt on Main. We also examined the Company's records ourselves. The KPMG reports were presented to all members of the Supervisory Board and thoroughly discussed together with the auditors at the Board's balance sheet meeting. We found no grounds for objec-tion. In view of our approval, the financial statements are definitively confirmed. We endorse the Managing Board's proposal that the net income available for distribution be used to pay a dividend of DM13 per share based on capital stock of DM2.8 billion. We also approve the proposal that the amount attribut-O
- f6Q R3 able to treasury stock be carried forward.
% 4Tj Dr. Erwin Hardt, member of the Managing Board M }L %j Communication Networks Group, retired on Sep-and, until March 31,1995, President of the Public j
!Q 34 9 tember 30,1995. Peter Pribilla took over the Group i
presidency effective April 1,1995. We expressed i
our appreciation to Dr. Hardt for his long and distin-guished service to the Cornpany. Our thanks also go
- to Karl-Heinz Nolden, who stepped down from the i
Supervisory Board on September 30,1995, after many years of dedicated service. He was succeed-ed by Ms. Bettina Haller on October 1,1995.
weeem-Berlin and Munich, December 13,1995 For the Supervisory Board lva q m
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Dr.-Ing. E.h. Hermann Franz Chairman
__5
4 Letter:0 our sharelo ders O
Ilon of DM)
We set a clear goal for 1995. erase last year's earnings dip as the first step 2,500 -
Ecwdinary gain in attaining a 15% return on equity over the long term.
2,000
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l am pleased to report that we have met our goal, Despite continuing price M
pressure and the negative effects of a strong mark, our net income grew to
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DM2.084 billion, a solid 26% increase over last year's earnings excluding extraordinary gain. In fact, we even surpassed last year's total including its extraordinary gain on the sale of our cardiac pacemaker business.
19 1 1992 19 19 top's strong impact This improvement in performance is in large part due to the continuing suc-cess of our top program. In place since 1993, the initiative is focusing efforts:
to achieve permanent improvements in earnings through four main thrusts:
increasing productivity, speeding innovation, expanding into new geographic e
and product markets, and fundamentally reshaping our corporate culture.
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In its first two years alone, the top program helped fuel productivity gains and y*
o expansion into new markets in a number of impressive ways:
Total cost productivity gains were almost 15% in the last two fiscal years, pmmmwwm]
representing more than DM12 billion in cost savings. This has enhanced pq jce meh.
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our competitiveness in many crucial businesses.
We are now solidly positioned for further expansion in the dynamic Asia-Pacific region.
Nsw orders and sales (in billions of DM)
Innovation as a competitive edge Constant innovation is an absolute must for success in the global electrical 10 engineering and electronics industry. In our drive to sharpen the competitive edge throughout our businesses, we are developing new and more efficient New orders
/
ways to operate. This means picking up the pace of innovation in basic tech-so nologies - such as microelectronics - used across all operations; speeding ses-new product generations; and exploiting synergies to meet customer needs.
It also means looking Closely at every one of our business processes and 1991 1992 1993 1994 1995 coming up with new customer solutions, such as innovative services and new operating models.
O
O None of the imaginative and successful products, systems and services high-lighted in this year's Annual Report were achieved by chance. They were the result of our systematic coordination of technology and product development throughout Siemens, and reflect the total focus of Corporate Research and Development on customer needs.
Only by reshaping the way we think and do business can we accelerate this innovation drive throughout all levels of the Company. Our top program focus-es on maximizing customer benefit by eliminating needless organizational bar-riers, giving our people the greatest possible freedom of action, encouraging individual responsibility, nurturing our employees' strengths and motivating them to achieve. We must be ready-and willing - to accept greater challeng-es and risks as we rigorously pursue global market growth. This will be no easy task. To ensure our success, we've put in p! ace initiatives and programs to keep us fast, flexible and responsive.
OPerformance oriented management Last year for the first time, we reported on earnings down to the level of our consolidated eight business segments and five geographic segments. This year we are going into even greater depth by providing the earnings perfor-mance in each of our 17 operating units:
Groups which in recent years were generating losses have begun to show their strengths. Our components segment recorded excellent earnings for the year, while the Automation and Private Communication Systems Groups, as well as Osram GmbH, made solid contributions. Notably, after four years of heavy losses, Siemens Nixdorf informationssysteme AG is now in the black.
. Three units posted losses in 1995: the special Network Systems division, which is still in its startup phase, the Power Transmission and Distribution and the Transportation Systems Groups. Other operating units, in particular Power Generation (KWU), Industrial and Building Systems, and Public Com-munication Networks, faced major changes in their competitive environ-ments and are not generating satisfactory results at present. KWU is also suffering from the politically initiated closing of its fuel element processing plant in Hanau, Germany. Restructuring efforts are underway to ensure that these groups recover their earlier earning power as quickly as possible.
O O
6 Le::er :o our sharelo cers 9
Building a more competitive Siemens There is no doubt that Siemens has the size, technological prewess and e
f worldwide presence to be a major force in the global electrical engineering 7~
and electronics industry. But we know that these attributes alone can lead to 9
- "9 complacency, inflexibility and bureaucracy. To win in our fast-paced, fiercely 7
competitive world, we have to combine the benefits of scale with the nimble-
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ness and market responsiveness which typify smaller, leaner organizations.
In 1989, we began to transform Siemens by decentralizing operations and g
creating streamlined vertical businesses. Today most of our approximately t
260 business activities are now leaner, more independent units where 1&"
management rewards are closely tied to how well their individual businesses 7
'p[lg perform and add to the overall success of Siemens. In short, we are pushing 4$
'I competitive responsibility onto those closest to where the competition is W
j fiercest -confident that their greater agility, market knowledge and customer Q,,,
proximity are the keys to success. Many of these units are already mastering Q
their part of the global competitive field, while others are still improving their fitness and sharpening their skills to meet our ambitious goals.
i As this effort continues, we are working hard to rebalance our geographic value-added structure and sales profile. At present, nearly 60% of our busi-ness is with customers outside Germany-and this percentage is grow-ing. However, roughly two-thirds of our value-adding work is still undertaken in Germany.
Market lead r in the light rail
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on November 10,1995.
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O We intend to correct this imbalance by speeding our global market growth, and are confident this should help preserve jobs in Germany.
Fascinating opportunities Electrical engineering and electronics are among the world's most exciting industries, with virtually unlimited potential for those able to compete suc-cessfully. We are determined to grow by seizing entrepreneurial opportu-nities:
We have the know-how and experience in communications and information technology to help shape tomorrow's multimedia world.
, We are pacesetters in power generation and transmission systems which meet and exceed growing environmental demands. In a world of expand-ing population and limited resources, efficiency is the key element in our solutions for providing energy and lighting in industry and the private sector.
We offer advanced environmental solutions, and the highest levels of safety and comfort in road, rail and air Or
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l transportation.
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. We are making it possible for health fi care providers worldwide to offer cost-
'1 effective state-of-the-art diagnostics e
and therapy.
We are expanding our global semi-
'f conductor business, and are part of r"
k an international alliance on chip tech-f,]
nology to prepare for the needs of the next century.
These are arnbitious plans - but we are confident that you, our shareholders, will profit from our success.
VuW
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Dr. Heinrich v. Pierer President and Chief Executive Officer Siemens AG
e 8
a,enera review O
In a generally favorable global economic climate, growth in the world's electrical markets remained stable. Although the strong German mark and high wage settlements dampened the economy in Germany, these factors did not yet have an impact on the domestic electrical market. Most markets in Western Europe and in the reforming countries of Central and Eastern Europe also showed an upward swing. Although double-digit growth was again recorded in the U.S., the boom in the electrical market seems to have peaked. While Japan's economy continued to suffer under the powerful yen and the effects of the nation's bank crisis, the Asia-Pacific region, and particularly cf Southeast Asia, continued to is b, l outpace the rest of the world.
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As South America's economy recovers, we taking part in the upswing with numerous invest-ments.
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Growth on target international business Despite unfavorable currency einsedens martisse Worldwide, sales were up sustained parities, orders in Western 1995 1994 more than 13%. The ef fects In the international arena. the Europe rose to DM23.5 (1994:
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+ 9 5% + 8 5%
of the strong Gerrnan mark, unwavering German mark and DM21.7) billion. Substantial Europe
+ 6 7% + 5 4%
however, pared growth by a drop in the volume of major growth was recorded in the (Germany)
+ 7.5% + 5 8%
three percentage points, and projects depressed growth.
Benelux and Scandinavian
'Amencas
+ 12.6% + 13 5%
ongoing price erosion in our Orders edged up 1% to countries.
(USJ
+15 0% +15 0%
world markets cut another five DM53.9 billion, and sales rose AsePacife
+ 9.7% + 8.1%
percentage points from the 4% to DM50.9 billion. Inter-Reflecting the further stabiliza-(Soumeast Asia)
+12.6% +14 0%
total, leaving a 5% increase national sales and orders tion of economic develop-Alnca, Mddle
+ 18% - 41%
to DM88.8 billion. New orders accounted for 57% and 59%
ments in Central and Eastern East, C ts.
rose 4% to DM91.9 billion.
of the respective totals.
Europe, orders from the Estimated real growth in percent region, including the C.I.S.,
Sales and orders in our stan-Growth in Europe increased to DM3.3 (1994:
dard products business, which Business expanded in Germa-DM2.6) billion.
surged throughout the world, ny again af ter a two-year slow-were a key factor in this down. Spurred above all by growth. Major project activ-a recovery in our industrial ities, in contrast, fell below business. orders jumped 8%
the high level recorded in the to DM38.0 billion and sales previous year.
climbed 6% to DM37.9 billion.
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U,S. business up in dollars, a decline to DM10.8 (1994:
/e W.,' e down in marks DM11.6) billion.
Our U.S. subsidianes took e'
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(1994: US$7.0) billion. Trans-of our business in the country lated into German marks, was local content, helping to Me*..
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incIud ng GeIman~ ~ ~ ~ ~43%~
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ness in the Asia-Pacific region,
"*"#MM' and sales rose to DM8.6 (1994: DM7.4) billion. Normal billion, which included the sain by balness eegment (including intersegment shipment) fluctuations in the billing of extraordinary gain from the rnajor projects led to a decline sale of our pacemaker activ-kp n - w nm m : %uy in orders to DM8.4 (1994:
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DM9.7) billion. The region now industry 24% - $lk Ih Contributes around 10% of our Productivity-enhancing A
total business volume.
measures in our top program communications 20 %
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made a vital contribution to informaton 13 %
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once again showed particular, be rigorously pursued in our Health care 7%
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ly dynamic growth. Benefiting ng ing drive to secure long-k,.,,
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from higher local content, stra, term global competitiveness.
components 7%
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other 2% M technology transfers, we are DM2.173 billion, the figure lay targeting 15-20% annual sales considerably below last year's.
growth in the region.
M.ixed segment Solid increase in earnings Performance Earnings improved signifi-The business segments deal-cantly, following last year's ing in products and systems dip. At DM2.084 billion, net pr fited from the worldwide income jumped 26% over the economic recovery and posted previous year's figure before above-average growth in sales.
extraordinary gain, exceeding our original 20% target. We also surpassed last year's total net income of DM1.993
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Our components segment showed an impressive 25%
Pretax income by busin.ss segment surge in growth for the year, U" "*0"' ON fueled in large part by the per-formance of the Semiconduc-Energy E,
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The industry segment also Transportation I.s-yo$
showed robust growth in sales and earnings, generated Health care by a number of major projects y...e,.
in Germany and a booming components 1018 300 business in standard products M0 Lighting Enjoying double-digit growth 291 and massive productivity gM 199s gains, the Automation Group
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- made the largest contribution to the increase in segment The information segment also Trends in our communicaSons earnings.
recorded double-digit growth.
segment were down for the Despite accelerating pnce year. A deckne in domestic detenoration and continued business impacted sales and high restructuring costs.
earnings in the Pubhc Com-Siemens Nixdorf Informations-munication Networks Group.
systeme AG showed a profit af ter four years of operating in the red
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12
,enera review a
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while startup losses burdened property, plant and equip-NN ~ 7" '
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g Systems division. The Private the past two years, increased V;'
Communication Systems to DMS.5 (1994: DM4.5) y Group was a bright spot, how-billion, primarily as a result of ever, recording a further nse investments in our new Micro-in sales and earnings.
electronics Center in Dresden.
The energy and transportation For the first time in years, segments, largely involved in high capital expenditures and major projects, were affected investments, as well as the by sharply eroding pnces and expansion of business, caused substantial restructuring charg-a net increase in funds used 2
es. The Power Generation that was covered by a reduc-ple of this drive is the consoli-Group (KWU) had to bear an tion of miscellaneous assets.
dation and focusing of out additional charge for decom-The Company's assets and know-how for new markets missioning its fuel element capital structure remained such as multimedia.
plant in Hanau, Germany.
virtually unchanged from the
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Strong 7% growth in the Auto-previous year.
Product and technology motive Systems Group, which innovation powered by our improved its earnings, was in the spring of 1995, we research and development not able to fully compensate received triple-A long-term efforts, in which we invested for the first-ever loss posted bond ratings from the two DM7.3 billion, or over 8% of
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by the Transportation Systems leading international rating our worldwide sales, further Group.
agencies, Moody's and enhanced our position as a U
Standard & Poor's, as a con-leading global player in the l
Declining prices, the strong firmation of our "very strong electrical and electronics German mark, and the loss of business position and solid industry.
business resulting from last financial standing "
year's sale of our pacemaker
" Synapse", our neural com-activities put pressure on Workforce resizing slows puter, won the Innovation sales and earnings in the The number of employees Prize of German industry. Used Medical Engineering Group.
declined by 3,000 to 373,000.
in the increasingly important for 16,000 pages of text.
Cutbacks of 7,000 jobs in Ger" sector of image processing, Our strong internatbnal team, The lighting segment, on the many resulted from restructur-the machine works roughly which has recently been other hand, managed to sus-ing measures, and were par' 8,000 times faster than joined by Motorola, will coop-tain its sales level and improve tially offset by the addition of conventional workstations.
erate on developing the four-earnings despite falling prices 4,000 employees outside the fold more powerful 1-gigabit and the weak dollar.
country; 3,000 of this total in the field of microelectron-DRAM.
were attnbutable to the con-cs, which is becoming a deci-Financial strength solidation of new companies-sive competitive factor in ever We are technology leaders remains high more industries, we and our in the highly dynamic GSM Capital spending chmbed Pace of innovation partners are leaders in devel-cellphone market in another DM1.8 bilhon to DM7.5 billion.
accelerated oping new chip generations sector, Siernens supphed Spending on acquisitions As the transformation of our such as the 256 megabit the state-of-the-art switching rose to DM2.0 (1994: DM1.2)
Company proceeds, innova-DRAM with storage capacity systems now being used in bilhon, largely due to the pur-tion processes are being Germany's infobahn. And we chase of Pyramid Technology speeded up. Encompassing were the first to successfully Corporation, San Jose, Cali-all stages of the value added market a multimedia terminal fomia, and a stake in newly chain, our comprehensive combining PC, communica-formed ITALTEL SlT S.p.A.,
program includes innovations tions system and television.
Milan, Italy. Expend 6ture on in basic technologies and products, and in the very way we do our systems and major projects business. One exam-
1
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officers in our plants ensure strlet hN adherence to all regulations.
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- 3 In the energy sector, our latest 800 telephone family and DM13 dividend ments. Little change is expect-generation of environmentally Green PCs, for example, can At the Annual Shareholders' ed in the other business seg-friend!y gas-turbine power be almost completely recy-Meeting on February 22, ments.
plants has set a world record cled, and increasing numbers 1996, we will propose that a Vfor efficiency. Our advanced of our products are receiving dividend of DM13 be paid on Unrelenting pressure to instrumentation and control environmental awards.
each share with a par value improve productivity across all systems for power plants and of DMSO from the DM728 mil-operations willlead to further transmission grids were well Advanced environmental tech-lion net income of Siemens reductions in the workforce, received by the market. A nologies, including systems AG, based on the capital stock particularly in Germany.
second Japanese firm has and plants for waste d;sposal entitled to the dividend, and licensed our environmentally and the monitoring and clean-that the amount attnbutable Above all, the increasing suc-compatible thermal waste ing of air, water and soil, to treasury stock be carried cess of our Company-w;de top recycling process, and a pilot are an important part of our forward.
projects should make a posi-plant has begun operations in program.
tive contribution to earnings.
that country.
Looking ahead At the same time, restructur-In our drive to minimize We expect the effects of the ing costs are expected to Further innovative products impact on the environment, strong German mark and high decline again. In view of these and processes, such as faster we again reduced the volume domestic wage settlements to factors, we expect net income full-body computed tomo-of waste by 15% and held impact our business situation to increase for the year.
graphs, new generations of water consumption and to a greater extent this year machine-tool controls, or more square-footage energy con-than last. On the other hand, efficient processes for manu-sumption constant despite important customer industries facturing steel and paper higher production output for both in Germany and abroad underscore our position as a the year. Although our produc-should enjoy further growth.
world-class technology leader. tion technologies scarcely burden the environment, we Our components and industry initiatives for spent DM225 million in the business segments, which the environment continuing quest to optimize showed the highest growth Reflecting the total commit-environmental protection at in fiscal 1995, should sof ten ment to environmental protec-Siemens AG.
Somewhat this year. In con-tion anchored in our corporate trast, we anticipate solid mission, we are one of the expansion in the communica-very few industrial companies tions and information seg-to set ngorous mandatory environmental and recycling standards for our engineers The Managing Board's general review and developers. Our Euroset covers both Siemens AG and Siemens worldwide consohdated
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15 Emp oyees To enhance our competitiveness, we are reshaping our corporate culture to ensure that creativity and commitment thrive, that productivity is a natural priority, and that our global team is totally focused on attaining customer satisfaction. As we nurture this culture, we are spreading the message that accomplishing our goals takes precedence over corporate titles or rank.
Our culture is based on teamwork, streamlining decisions and speeding our response to market needs. Trusting people to strive and achieve on their own initiative, we are aiming at empowering our employees in a highly cooperative climate which reaches across all departments and operations.
Our employees' talents and their ability to suggest the best possible cus-tomer solutions have made us one of the industry's strongest global players.
Support and motivation for this talent comes from our managers, who are increasingly being selected from our rich international pool of human resources.
Success is ultimately determined by the ability to anticipate and adapt to changing business conditions. To secure our competitiveness, we rely on flexible work schedules to reduce costs. With more than 100 different work schedules being used throughout the Company, we have achieved new levels of market responsive-
$7. ERIE,'iY ness. As part of our program, we offer part-time employment wherever appropriate. Over the past decade, the proportion of people working part-time at E Europe 77 %
Siemens AG has nearly doubled UmTn*y s7%
to around 10%.
m Amencas 17 %
M Asia-Pacific 5%
As of September 30,1995, we a gagdie employed 373,000 people world-wide, roughly 3,000 fewer than the previous year. Workforce reductions continued in Germany, where 7,000 jobs were phased out during the year. Our international workforce grew by 4,000, including 3,000 attributable to the consolidation of new companies.
This reflects the growing need to adapt our global value-added structure to O
regional demand and to serve our international markets and customers more efficiently.
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17 inercy Meeting the energy needs of a growing worldwide population while reducing the impact on the environment requires creative power generation and trans-mission solutions. We continue to develop power supply systems that use fewer natural resources, operate cleaner, and transmit as well as distribute power with the highest possible efficiency. Bold new concepts, such as fuel cells for generating power in isolated locations and superconducting power storage systems, are carrying us beyond the limits of existing technology.
By rigorously boosting productivity, we now provide our customers with energy systems at lower cost y
and faster than ever before. And
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M in response to market demand m _
for lower investment costs and 7", ;
innovative financing models, we N
are participating as co-investor M
in an increasing number of power A
projects.
Static reactive-power compensators reduce power transmission losses and voltage fluctuations.
Ee6iisidPm] The closing of our nuclear fuel As part of our efforts to Our new Teleperm XP instru-M L,Ja wa production in Hanau, Germany, bolster and expand our market mentation and control system New orders DM9.0 bilhon - 6%
and restructuring measures positions in the Far East and for power plants is proving Sales.
DM8.4 bdhon '+11%
to boost productivity across all Eastern Eurcpe, we formed a success in all market seg-Income DM79 mulion divisions once again burdened joint ventures for engineering ments, from small cogenera-capitas eamings.
and manufacturing turbines tion plants to large coal-fired speneng DM2s3 mili.on and generators, as well as for power plants. More than Emplwees.
20.200 Orders for gas turbines and producing equipment for 60 orders have been received combined-cycle (GUD) power hydroelectric power plants.
from 20 countries.
While sales were pushed plants came in from Europe, We also acquired minority up by expanding business in Asia and both North and stakes in two companies Working with electrical util-Asia and the billing of major South America. These includ-specializing in the production ities, we are developing a new projects in eastern Germany, ed contracts for all three out-of turbines and generators in generation of nuclear power orders failed to reach the put ranges of our new gas St. Petersburg. Russia. Major plants. We received orders for previous year's level due to turbine family, launched at investments were also made the basic design phase of the substantially lower prices and the beginning of the year. The in upgrading our domestic European Pressurized Water the postponement of some new models are marked by facilities, including the addition Reactor (EPR), a joint Franco-projects.
improved efficiency, perfor-of a new integrated production German project, and for a mance and cost-effectiveness. line for turbine blades in Berlin. medium-sized boiling water We are currently developing reactor (SWR 1000). Numer-large coal-fired power plants ous orders were won for ser-with advanced technologies vicing nuclear power plants in for China and Indonesia, Belgium and the ' Netherlands.
and will be delivering four Our nuclear fuel business generators for China's largest has been restructured on an pumped-storage power plant international basis.
in Guangzhou.
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9 We sold a second license to International competition is Q '" " ~"N'P q 1 Japan for our thermal waste expected to intensify during ass (cesamueleng
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fj system for the environmen-the current fiscal year. The New orders. DM6.1 billion +13%
tally friendly recycling and worldwide volume of power Sales DMS.9 bilhon + 7%
disposal of household and plant contracts is likely to stag-less-DM15 million industrial waste. The first nate, affected in part by the capital commercial plant using this long pre-contractual planning spending DM151 mean system is being built in F0rth, for privately financed projects.
Employees 22 M Germany, and will be com-Despite these factors, we pleted by late 1996. Further expect to sustain orders and in a year marked by ups and project and planning orders sales at roughly last year's downs, we boosted new have also been received for level. Long-term programs to orders and sales, helped in contracts in Germany and enhance competitiveness part by the consolidation of 1
Switzerland.
have improved our cost posi-two cable producing subsidiar-J tion and further shortened the les in Hungary and Italy.
We are moving ahead on time needed for engineering, developing fuel cells as a manufacturing components Responding to a tougher com-promising future alternative for and on-site assembly.
petitive environment marked generating power in isolated by falling prices, we launched locations.
additional cost-cutting initia-tives designed to adapt and w
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High-voltage stabilization equipment also operates with absolute reliability
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4; j Seismic testing of a high-voltage circuit breaker on an extremely high-strength porcelain post insulator.
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S consolidate production capac-Together with the Danish ity; these led to a high restruc-electric utility Elsam, the turing charge. Earnings slipped Technical University of Copen-into the red for the first time.
hagen, and the University of Manchester, we developed a Our transformer and power new electronic control system cable divisions were hard hit for Denmark's largest wind i
by eroding prices, and busi-power plant, Rejsby Hede.
ness in medium-voltage tech-nology, electricity meters and Af ter the Slymar East high-6 substation control systems voltage substation in Los failed to meet expectations.
Angeles, California, was gut-ted by fire in 1993, we rebuilt
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tions spread throughout i
s western and eastern Berlin
_g' Malaysia's Paka GUD power plant into one joint station for powor Is the first private facility to feed the distribution, network monitor-national grid.
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ing and irterference suppres-sion.
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In today's fiercely competitive business climate, our focus is on providing the hardware, software, engineering and services needed to increase productivity with the greatest possible respect for environment factors. State-of-the-art 3
logistics systems and information technology, coupled with instrumentation and controls, provide the basis for a highly efficient, extraordinarily complex I
3 interplay among individuals, machines and production sites. Open-ported industrial equipment ensures the total integration of communication peths to j
streamline automated processes. Electronics are also the key to controlling mechanical systems, such as variable-speed drives, As more "o f 4
i intelligent industrial processes O
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shif ted to the level of information l
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Automation ensures efficient production.
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g er*P " Wy Domestic business was sub-nearly all use or are being ing service and maintenance.
[ sed SuBding Sysesens
,d dued, reflecting industry's equipped with Siemens we expect dynamic growth f4ew orders CM9.7 bdhon
+7%
reluctance to invest ir. major process controls and drives, in this sector. To tenefit from
}
Sales DM9 2 bdhon ' +7%
projects as well as tighter underscoring our technological this development, we must i
income DM75 mdhon budgets in the public sector.
edge and market leadership substantially improve our cost capitsi We continued to push cost-in this sector. We also enjoy position; this will require spend q DM94 rmon cutting programs to help boost a solid intemational position as greater worktime flexibility Employees
' 40,400
- earnings, a provider of airport systems.
cad inevitably lead to further 4
cutbacks in our domestic Even though unfavorahle International business was A number of major orders for workforce. As a precautionary currency exchange rates and marked by the billing and building systems placed by measure, the charge for these i
intensified competitive pres-ordering of a number of major banks and insurance compa-personnel adjustments was sure impacted earnings, we projects for the iron and steel nies confirmed our strength taken in the year under review.
continued to expand our busi-industry in Southeast Asia, in this field.
ness worldwide. Solid gains Italy and Austria. Orders came Undersconng our international were made in our international in to supply electncal equip-The direct marketing of techni-commitment, we formv ' two business, where we posted ment for three hot-rolling mills cal services to non-Siemens joint ventures for technical double-digit growth in both in North Amenca. One will customers surpassed the services in China and Russia.
orders and sales.
use compact strip production billion-mark level for the first (CSP) technology, the other time. As large companies step in the current fiscal year, two are medium compact up the trend toward outsourc-we expect stable domestic plants. Both innovative demand and an increase in systems allow the compets-exports, particularly to South-tively priced production of east Asia and developing broadband steelin one contin-nations in South America.
uous process. Of the some 20 plants of this type worldwide,
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22 Industry 9
gg7w "mq Our ElB Instabus building y&= "~mv" Continuing to apply our k, wa_;x m]Q padeenndenifmenet a management system is now systems competence to other New orders,
DM7.8 tWhon +9%
being used in private housing, New orders DM6.5 billion +15%
sectors, we are offering com-Sales
' DM74 twon - +7%
having proven its convenience, Sales -
, DM6.9 tallon +16%
plete automation solutions income DM212 miikon security and energy efficiency income DM415 malon to the textile and packaging capital '
in the commercial and indus-capital industries, wood, ceramics-spending. DM240 milhm trial sectors. The system mon.
speding DM141 milkm and stone-processing indus-
)
Employees ~
34.700 itors, controls and integrates Employees 1630 tries, and for plastic-process-i all vital functions and process-ing machines and presses.
In a strong year, orders, sales es in a building, from heating Our timely development of and eamings continued to and air conditioning to lighting new products enabled us to The electrical and electronics climb, fueled in large part by and security systems.
profit from a sharp upturn in industry sustained its solid our international operations.
capitalinvestment by industry level of orders for our pro-
)
Domestic orders were also Our wholesale "i-center" during the year. As the busi-grammable controls and sur-
)
up from the previous year.
(installation center) organiza-ness climate improved in the face-mount placement (SMD) tion now has more than 125 world's major industnal systems. Business with the The drives business posted locations, and posted a strong regions, we achieved notable chemical industry, in contrast, a strong jump in sales and upswing in business volume.
growth in both standard remained quiet. We received orders. Simovert Master industrial products and major the first orders for our new Drives, our new family of With the worldwide markets projects.
mail-sorting machines in letter modular converters, proved a for our spectrum of products and package logistics projects 3
success in markets throughout promising to expand, we Streamlined processes and in Germany and the Nether-the world and consolidated expect to see steady growth innovative products launched lands.
our position in this sector. The bolstered by intensified inter-in recent years, together with division will be streng;hened national activities and further a higher volume of sales, in order to better serve our by a new joint venture in product innovations.
led to significantly improved industrial customers and con-i Tianjin, China, our Group's earnings.
solidate business activities, fourth enterprise in that in response to dynamic we merged our U.S. activities, country.
changes in the drives systems Once again, our experience previously the responsibility business, we completely in providing integratrd, com-of Siemens Industnal Auto-Our low-voltage circuit breaker restructured our former Drive pany-wide solutions proved mation, Inc., with Siemens business greatly profited from Systems division into five invaluable in completing major Energy & Automation, Inc.,
the boom in the European independently operating units.
projects such as the logistics effective October 1,1995.
machine-tool industry. This By segmenting and vertically systems for Deutsche Post success was bolstered by the organizing these activities, we AG's 33 package handling The billing of major projects market popularity of our actua-are effectively deakng with centers in Germany, and the in fiscal 1995 willlead to a dip tor sensor interface (ASI),
altered product structures, automated logistics system in sales for the current year. In which bridges the communi-new value-added processes for Quelle's new rnai!-order our standard products sector, cations gap between the high-and changing buyer behavior center in Leipzig, Germany.
the mainstay of our activities, er controllevels and the low-in the market.
These two projects made a we anticipate another signifi-est functionallevels in auto-substantial contribution to cant surge in business despite mated industrial processes.
earnings for the year.
a general slackening of demand.
Our installation and lighting Our standard products busi-systems business, whose ness benefited primarily from
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by demand in the construction international orders and sales industry, once again was from the industrial sector, in affected by restrained growth particular machine tools.
in public and industrial con-struction. Stagnating domestic business, particularly in light-ing systems, was of fset, how-ever, by a surge in exports.
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In communications, new technologies are joining information systems and entertainment electronics to create tomorrow's multimedia world, opening up unique opportunities for the business world and enhancing the quality of life for all. Interactive communication has dramatically expanded the spectrum of available information and services, such as teleshopping, teleworking and telelearning. Our equipment, systems and services rank among the world's best and we intend to stay at the front of these accelerating developments by j
building on our existing portfolio of innovative technology platforms. We offer comprehensive communications j
solutions for increased mobility and security, for broadband and pg
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private communication systems worldwide.
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German states, led to a Deutsche Telekom AG signed customer need for fiber-optic,
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.j decline in sales. Exports as a framework agreement coaxial and copper communi-New orders DM10 8 beon -12%
well as the new orders and with us to speed digitization cation cables, and radio net-1 Sales DM10.4 buon -19%
sales of our international Com-of Germany's telephone works.
hcome DM206 mean panies, however, sustained network. Our EWSD digital capnal their previous year's high switching system continues Responding to changing mar-spending DM339 mille level.
its notable success: to date, ket demands, we have shifted Employees 32.400 230 customers in 86 countries our focus to new sectors and To improve our position in a have ordered well over reorganized the Group effec-The general trend toward tough marketplace, we 100 million line units.
tive October 1,1995, to form deregulation and liberalization pressed forward with product eight largely independent busi-has spawned highly fluid development and formed As the telecom market contin-ness units. Now closer to our telecommunications markets further alliances and joint ven-ues to open up, we recorded customers, speedier and more throughout the world, offering tures in Eastern Europe and initial successes with "Alterna-flexible, we expect this move us both the challenge of new Asia.
tive Carrier," our new market-to help expand business and competitors and the promise ing activity.
improve profits.
of new customers. This devel-The new joint venture with opment, plus the rapidly accel-Italy's state-owned telecom We have achieved a solid Our non consolidated subsidi-l erating pace of technological holding company STET will market position in GSM-based ary Siecor Corporation, in I
change, have put considerable enhance our presence in the mobile communications, and which we hold a 50% stake, j
pressure on profits.
global market. In Spain, we our wireless technology is further improved its market agreed on a memorandum of now being used by 47 opera-position in North America by f^NA weakening domestic mar-understanding with Amper tors in forty countries.
acquiring Northem Telecorn's i
,!ket, resulting in part from the S.A. on future joint ventures.
cable accessory business,
completion of telecommunica-Continuing to expand our with plants in the U S.,
tions projects in the new spectrum of network access Canada and Mexico.
products, we can meet every
26 Communications
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to develop, manufacture and We anticipate further growth
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market mobile phones for the in the current fiscal year, New orders DM7.0 bdlion +14%
American market.
and intend to outperform the j
Salet DM7.0 billon +13%
general market significantly
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Income '
DM479 mditon.
We established joint ventures by offering highly innovative n,.,
I capital.
with ITALTEL in Italy and with applications, complete com-spending DM475 million SMH, the parent company of munications solutions and Employees 23.900 Swatch, in Switzerland. In world-class mobile phones.
Britain, we acquired a majority The substantial jump in new stake in the private communi-orders and sales, and a major cation systems business of
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improvement in earnings Mercury Communications Ltd.
were largely attnbutable to our
',.. Wg strength in the international Demand for our innovative market. A healthy share of this cordless phones and especial-Q,\\
1 growth was generated by the ly for our cellphones is so rapidly expanding mobile great that we were able to
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phone market.
triple production output. We also developed a standardized Our strategy of concentrating telephone family for the global on future-oriented innovations market with simple operating l
and high-growth international features that were granted markets has borne fruit. In international patents.
addition to expandrng direct sales of our digital Hicom To better satisfy market needs phone system throughout the for end-to-end solutions, we Asia-Pacific region, we have are remodehng ourselves as a opened a technical service systems house for communi-center in Singapore to serva cations solutions. In this role, Southeast Asia. We have also we offer a full spectrum of formed a joint venture in products, systems and ser-Shanghai to develop, produce vices, ranging from demand and market telephones in analysis and the provision of E
China.
complete turnkey systems, to outsourcing services including
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mitment to local content with work as a general contractor a joint venture for t@ phone or together with partners,
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airport with a comprehensive ISDN communications net-Because success in our busi-work served by 16 Hicom ness largely depends on a 3
systems.
widely apphed set of industry standards, we are working 3
After successfully reengineer-with Apple, AT&T and IBM on Telecom carriers boost earnings by ing and streamlining its opera-the "Versit" initiative to devel, optimizing their networks.
tions, our U.S. subsidiary op and promote open specifi.
2 Siemens Rolm Communica-cations for integrating commu-0"[,,"',*[ '[,[ 8",,'"'
,c i n behlndthe tions moved into the black for nication products from differ-scenes at Milan's La Scala opera.
the first time since its consoli-ent manufacturers.
3 dation some years ago. Dunng The Autoko 90 digital radio network the year, the company formed
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High-speed networks used by telecom carriers in Europe end the U.S. are based on our EWsM digital switching system.
-,m."~M n the command and control k&. ',
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ened our market position with g
Sales DM0 9 bdkon Sales DMI.3 bdhon -11% ~ orders in Britain and Germany.
Loss DM83 milhon income
. DM43 million The Argentine national police capital Capital ordered a country-wide short '
8P8nd'ng DM14 makon spending DM26 mdkon wave radio network.
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The growing need for open Our business volume contin-leading position in multifunc-network solutions helped ues to be determined by the tional radar systems by suc-boost sales and orders for our typical fluctuation of orders cessfully proving our equip-special division, formed in and billings for large projects.
ment in tests in Germany and
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1994. Demand was especially As expected, both business Bntain. Important orders for strong in Europe and the volume and earnings declined air traffic control systems NAFTA countries.
for the year.
were won in Nanjing China,
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and Hungay.
We installed a high-speed Nevertheless, the market for network for multimedia appli-defense electronics began to We anticipate a continuing cations in South Afnca, and stabilize as the phase of plan-upswing in our markets and expanded existing networks ning uncertainty apparently solid growth in our business.
3 in Britain and the U S.
ended. This was particularly
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bone of our business -
showed healthy growth.
To expand our product port-folio for local area networks Moving quickly to respond to g%
(LANs), we acquired Omet market conditions, we com-j f86 '/
Data Commuriication Technol-pleted all necessary restructur-ogies Ltd., Carmiel, Israel.
ing measures and were able 8T-Ornet is one of the foremost to achieve commensurate providers of switched Ether-earnings. On average, more net technology, which permits than 80% of our value added higher transmission rates in is generated in the customer's LANs, allowing new multi-country.
media applications.
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l The astonishing pace of technological develop.. lent, coupled with rapidly growing numbers of users with highly individual needs, make the IT market exceptionally dynamic and volatile Marked advances in information technol-I ogy have fueled fundamental changes in industry and administration. Today's l
office is lost without a PC, companies rely on networked computers and servers, and even PCs in the home have access to the global infobahn.
l Siemens Nixdorf (SNI) is undertaking a profound reengineering process to l
secure its competitiveness in this demanding climate. A streamlined organ-l ization and a more responsive j
corporate culture have increased j
its flexibility and reemphasized i
its commitment to total cus-f tomer orientation.
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M Controls and disk drives I
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ggmyw74 Multimedia Star FD 200, a To better serve our markets, We are the world's first and l
,Informselonssystems AG ISNU combined PC, television, tele-we consolidated our activities only supplier of an innovative i
.New orders DMPI O biHon +11%
phone and fax designed for for application sof tware prod-system allowing electronic Sales DM12 e binon +10%
the consumer market, as well ucts in a single business unit.
ticketing with touchless incorne DM62 minion as the high-end multimedia "Workplace Centered Com-chipcards now in use for the capital Scenic PC line, in the fall of puting" is our strategy for Frankfurt-Berlin air route.
spending DM426 rnilkon 1995.
merging business administra-The system was developed Employees 37.200.
tion and office functions at the in partnership with Luf thansa We sustained our position as workplace.
and introduced in May 1995.
Siemens Nixdorf (SNI) has a leading European provider in l
tumed around; For the first the commercial UNIX
- server For Deutsche Postbank AG, As part of its major intelligent time since its formation, market, remaining number one one of the world's largest tele-networks project, Deutsche orders and sales rose. Foilow-in Germany in this sector. Our banking operators using SNI Telekom ordered our sof tware ing years of restructuring full acquisition of America's products, we integrated the to implement the networks' i
measures, the company has Pyramid Technology Corpora-archiving solution Arcis with array of services.
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moved into the black.
tion helped us further rein-Kordoba at 14 branch offices.
l force our standing.
Allianz awarded us a triple-In the current fiscal year, we l
PC sales totaled nearly digit million-mark contract for anticipate further growth and j
640,000 units, and we were Our computer point-of-sale systems integration services, a continuing rise in earnings.
4 market leader in Germany in systems remained top selier in as well as desktop and note-I the first half of 1995. Together the European market, and we book PCs for some 6,000
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with Siemens Electrogerate also maintained our strong insurance agencies.
GmbH, we launched the new market position in the auto-mated teller sector. SNIis one of the world leaders in the a
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v Within the global transportation markets, two seemingly contradictory trends are shaping developments. On the one hand, growing wealth is increasing the desire for more mobility. On the other, environmental concerns and the high cost of transportation infrastructures are threatening to limit growth.
Our approach to these divergent factors lies in offering innovative intermodal concepts. As a world-class systems integrator, we possess know-how and experience culled from all our specialties-transportation and automotive systems, defense electronics and industrial systems - to develop environ-mentally sound ways to improve and integrate road, rail and air e
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transportation, and to provide y
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ment and air traffic control systems.
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,f Europe's RegioSprinter is an exemple of our advanced vehicle design for regional rail routes, giiisifhane'ispiii;&~N73 The growing liberalization Nevertheless, the outlook for The next generation of k
-.wsj of markets, privatization of the future remains bright. The Germany's high-speed ICE New orders DMs9 tdllion c+8%
railroad operations and over-global market for transporta-train is taking shape under our Sales DM4 6 bnon
+6%
capacity in the rail supplier tion systems should show lead management. More Loss ~
. DM128 mmon industry have intensified steady, long-term growth, adaptable and even faster than capital competition and put further though marked by strong its predecessor, the ICE 2.2 spending l DM122 mnon pressure on prices. In addition, regional fluctuations. Expan-will be running throughout Employees
.13.700 the shift in switch systems sion is expected to be most Europe by the turn of the cen-from relay technology to elec-dramatic in Asia, America and, tury. Orders for the sleek units Af ter years of having our rail tronics is changing the value-in a larger time frame, Eastern and for the IC NeiTech, our systems business substantial-added structure and vertical Europe.
trainsets with tilt capabil,ty, ly outpace the market, growth integration in our production.
have reinforced our technolog-rates have settled at a high We are prepared. In the next icalleadership in the high-l level. Orders and sales, We are responding to these two years, we plan to increase speed and tilt-train sector. We however, once again rose for developments with a compre-our volume of international have just delivered the first the year.
hensive cost management business substantially. As part units of our new RegioSpnnter, program, and are now rigor-of our accelerated drive to glo-a diesel-electric light rail vehi-i ously consolidating all over-balize, we are building up our cle for mid-distance routes.
lapping activities in the plants base in the U.S. and forming we acquired in recent years new alliances in Asia.
New orders for rapid-transit in the sector of locomotive and and long-distance rail vehicles rolling stock production. These were received from Portugal,
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restructuring efforts and the Netherlands, Eastern
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eroding prices in the industry severely burdened earnings.
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32 ransoor:ation Lr 5
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Europe and Scandinavia.
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We delivered subway trainsets k j
to Singapore, opened a new New orders DM3 2 bilhon +7%
subway line in Shanghai, and Sa!es DM3 2 bilkon 47%
are building a subway network income DM110 milhon in the Chinese city of Guang-capnai zhou. And we installed spending DM295 milkon advanced electronic switching Employees 13,700 systems in a number of Euro-pean cities.
Despite difficult market condi-tions for suppliers to auto-As we continue to localize makers, and the divestiture of our rapid-transit business for our air conditioning systems the NAFTA area, we opened activities, we again boosted a plant for vehicle shells in orders, sales and earnings.
the U.S. that allows us to offer This growth was largely due
,. Y complete trainsets built with to a boom in our core business a1 local content. The opening of of utomotive electronics.
our own testing center for all types of rail rolling stock near Roughly two-thirds of our total Monchengladbach, Germany, business is generated by elec-Will help us further consolidate tronic systems, including our market position at a high motor management systems levet for improving efficiency and N
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.n relentless price detenoration gers, on-board information engines.
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expense, we expect to im-electronics for suspension Our low-floor light-rail vehicles prove earnings in the current systems. Electric motors
'"U ""g't 'ig h "o the world's lowest b
fiscal year.
and on-board networks also 3
account for a large share of Cable sets for networking power our sales. Siemens now sup-and information in cars can be plies virtually all automakers quickly and easily installed.
in the world with electronic d
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t 05 4
s Our climate systems division, our electronic controls are used which accounted for approxi_
by manufacturers of automotive mately 10% of Group sales,
[y*,*,'l",n,*"d '"di*'*"'"8 8
was incorporated into Valeo Climatisation SA, Paris, in which Siemens holds a minor-ity stake. As part of the deal, 4
we took over a majority share in a producer of electric motors for climate systems, located in La Suze, France.
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t-gyp in our steady push toward glo-balization, the structure of the Group's value-added content has changed: Some 30 pro-duction sites around the world have been added to the ten locations in Germany, reflect-ing our policy of following customers into new markets.
Parallel to these foreign invest-ments, we are strengthening our marketing organization and tailoring our product offenngs to serve customers even better than befoic. We are now focusing on the markets of Latin America and Asia.
p To keep at the cutting edge of the industry, we spent around DM350 million, representing more than 10% of sales, on research and development.
The dramatic pace of innova-tion in automotive electronics can be seen in our current spectrum of products and systems; four-fif ths were developed in the past three years. We also see ourselves as a pacesetter in the world-wide trend toward larger assembled units and systems integration.
We expect business volume to rise once again in the cur-rent year, fueled by our strong innovative drive in motor man-agement systems and safety electronics.
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35 ea a care n
Facing unrelenting pressure to cut costs, health care providers and their suppliers are continually seeking ways to improve productivity. The demand for the most cost-effective equipment and processes is growing. We have secured a solid market position through innovative and patient-friendly products, creative customer management services and rigorous cost-cutting programs. Our revolutionary Magnetom Open magnetic resonan e imaging i
system, for example, has been sold to more than 150 customers worldwide since its market launch in late 1994. The system is ideally suited for both routine diagnostics as well as cost-saving interventional
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k our sonene f wiy of ultrasound imaging systems provides f ast and accurate diagnoses.
DeediielEsigliGrids" ""7 Stronger growth in Southeast The latest generation of our We anticipate a light upswing b
n.-
a.
,A Asia could not quite compen-
" Swing" hearing aid has a in business this year, helped in New orders. DM6.9 tillion -11%
sate for lower demand in the feature unique in the industry:
part by the launching of addi-Sales DMs.8tsuion -10%
U.S., where we do a quarter it uses just a single chip.
tional new products, including income DM1oo min on '
of our business. Despite computed tomographs, patient Capital declining import support in A large share of the year's monitoring systems, ultra-spendmg DM238 million Japan, we were able to hold capital spending went into sound imaging units and Employees
- 23.400 our solid position there and our plants. Comprehensive audiological devices. Income defend our market leadership restructunng programs and for the year is expected to A restrained market, currency in the field of cardiac angio-rigorous process reengineer-continue improving.
fluctuations, growing pressure graphy. Trends in Central and ing enabled us to meet on prices due to overcapacity Eastern Europe were positive, requirements set by the U.S.
in the industry, and the sale and business in Latin America Food and Drug Administration, of our cardiac pacemaker was augmented by major and optimized our process activities cut our business orders for X-ray units in flows, quality and manufactur-volume and led to a drop in Colombia and Argentina, ing costs. Our plant in Forch-earnings.
heim, Germany - Europe's Our new, highly flexible only facility for computed patient monitoring system has tomographs - delivered its been well received in the mar-5,000th CT unit this year, ket. In the ultrasound sector, At present, every sixth unit of our color-capable Sonoline the world's installed base of O
Versa family, a growing suc-30.000 cts bears the name j
cess since its introduction in Siemens.
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early 1995, has now been approved for sale in the U.S.
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i 37 om3onen:s l
1 i
i i
j The breathtaking growth rate in the components sector makes it a driving force of economic development. Today's vast array of semiconductors, and passive and electromechanical components form an indispensable part of the electrical and electronics world and are the basis for countless innovations.
l They have transformed PCs, mobile phones and video cameras, for example, j
l into handy, user-friendly and attractively priced consumer goods. In other j
industrial applications, components vastly increase the value-added content of l
products and processes. As a major global supplier in this field, we work l
closely with customers world-wide in all industries and within our own company to provide tailor-made, innovative solutions.
/
Miniaturized strip-line filters made of microwave ceramics are key compo-nents in mobile phones.
in Europe for DECT and GSM microelectronics, such as The growing use of high-per-seeig g sif"m7p) k %; dim ~ $d.
mobile communication appli-our innovative multimedia formance LEDs in automobiles New orders DM4.9 billion +35%
cations by offering state-of-memory chip card.
and information technology sales DM4 2 bilhon +36%
the-art technologies with com-pushed up sales in this sector.
Income
DM793 minion plete chip sets. Our compo-in the power chip sector, we We are Europe's number one I
captal nents for graphics, image-in-are the only European manu-suppher of LEDs, and second spending
. DM1.3 billion image functions and 100-cycle facturer of high-performance in the U.S. market.
Employees.
.15.900-technology for flicker-free tele-chips used in the rapidly grow-visions were major successes. ing drives market segment.
Construction and commission-j Last year's upward momen-Responding to trends in the ing of our state-of-the-art j
tum continued as sustained As a leader in chip-card ICs, automobile industry, we devel-Dresden chip plant are on j
high demand for products in we continued to expand our oped intelligent power switch-schedule. Highly promising j
our core businesses dramati-international business in this es that led to above-average market forecasts led to our j
cally boosted orders, sales sector. Our customers are business growth.
decision to expand capacity j
and earnings. This brisk benefiting from new security further, and our chip factory j
growth was also the result of monitors for smart cards.
Our powerful surface-mounted in North Tyneside, near l
streamlining measures in Continuing to globahze our high-frequency components Newcastle, England, should development and production.
activities, we launched a based on gallium arsenide go on line in 1997. We are 32-bit microcontroller project and sikcon won us additional developing our plant in Villach, j
in the information technology for automotive electronics market share, particularly in Austria, as a power chip j
IC sector, we further extended and information technology the mobile communications center, and are also expanding 4
our leadership in CMOS and in Cupertino, Cahfornia.
sector.
production capacity in Regens-bipolar technologies, and burg. Germany. In addition, we enhanced our market position We are adapting semiconduc-have joined Motorola to build in appkcations for switching tor memory technology for a new chip plant in the U S.
systems and networks.
new application sectors in We affirmed our top position
$i J.
38 Com3onen:s h
Our cooperation with IBM and
)6@g?"""] worldwide with a host of inno-We are securing future growth Toshiba continues to flourish:
nd aisseron1hbesg2,. h We presented the first fully New orders.. DM2.1 billion +15%
vative products featuring functional samples of the Sales l DMt.9 billion +16%
world-class quality and opti-world's sma!Iest and fastest income DM198 million mal Customer benefits. As 256-megabit DRAM. Our tri-capital part of our new focus, we lateral development alliance spending.. DM175 milhon are moving into the dynamic has been joined by Motorola, Employees 8.9%
markets of Asia and America, g
and will be launching the and increasingly shif ting our y
1-gigabit DRAM project.
We are continuing to grow:
development, manufacturing
(
orders and sales have jumped and marketing activities to p
Following years of closing again, confirming that we have these regions. This move is
- -[
the technological gap with succeeded in winning market locking in crucial cost advan-competitors and successfully share with our highly competi-tages and bringing us closer restructuring our entire orga-tive product spectrum. Our to key customers.
e nization, we are now posi-joint venture Siemens Matsu-f tioned to launch a major shita Components contributed To consolidate our earning 3
expansion program tailored 60% of total sales.
power, we are intensifying our U to market needs.
customer orientation and Profitability rose as a result encouraging our employees'
-f of higher sales and, above ali, entrepreneurial spirit. Our con-t=
due to our efforts to focus tinuous improvement process I.
on customer needs, improve is streamlining productivity in i
productivity and streamline all our business segments.
[
processes.
These measures, coupled R
with the targeted launching
[
Growth was attributable not of innovative products, will only to the strong components ensure that we remain
)
market, but to our targeted competitive.
g launching of various new products with high customer benefits.
We recorded especially vigor-ous demand in the telecom-munications, automobile and industrial electronics sectors.
In our global market, growth was strongest in Asia and America.
Double-digit growth rates optimally shielded signal pins in were achieved by our surface a metric grid are a speclat feature acoustic-wave filter and of our SIPAC plug connectors.
ceramic components divisions.
2 The two units received a Our SDA 9270 Field Mixer reduces the remaining line flicker large share of our considerably in 1oo. cycle television sets.
higher capital spending during 3
the year, as we stepped Clean-room production of surface up efforts to ensure we will acoustic-wave m in Munich, e
be able to seize future market U *""'"Y' 4
opportunities.
Piug connectors for our Universal Serial Bus link up to 126 PCs.
\\
.m"" mm The relay business also
.W ~&mmij boomed. We substantially New orders OMI 2 talhon +9%.
increased our market share in Sales
~ DMt.1 t)illion. +7%.
the network relays sector with income -
DM27 mEon our acquisition of Austria's w
capital -
relay producer Schrack, with g
spending DM93 m.llion plants in Austria, Mexico and Employees.
- 7,8@
Brazil. To satisfy rising cus-tomer demand in the automo-We are countering the grow-bile relay sector, we expanded ing pressure of global compe-our production capacity in tition by pushing innovation Berlin-Mariendorf, in Trutnov,
+
and aggressively penetrating Czech Republic, as well as important markets. Close in Franklin, Kentucky.
development partnerships with customers and radically Newly developed connectors reduced throughput times for cellphones, computers and are g;ving us the competitive automobiles ena' led us to o
edge. Our international work-penetrate new markets. Our lQ*
force of experienced and com-new production facilities in mitted people ensures that Charlotte, North Carolina, and
' [ %,4-2 our sales office in Totowa, New Jersey, are conveniently located near key customers, helping us gain a solid foot-g?
hold in the American market.
g ;' -
In the automotive sector, we S
are continuing to focus on innovations for safety systems such as air bags and ABS, for motor management systems, and for fuelinjectors. In the computer business, we are one of the first manufacturers s
8 to offer a connector for the customer demands are met Universal Serial Bus (USB),
with speed, flexibility and which allows far simpler and g &g j
highest quality.
more cost-effective network-ing of peripherals.
y The fiber-optic components 8
division led growth for the Following a difficult restruc-year, with a 25% jump in busi-turing phase, our business i.
m ness volume. These products with hybrid power modules are opto-electronic modules showed an upswing.
y that convert electrical signals into light and vice versa. While In view of declining restructur-the primary market for these ing charges, we anticipate components remains the U.S.,
higher earnings for the current the Japanese market is also fiscal year.
+,
Q expanding. We significantly
(
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, v3 our position in both regions.
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41 Lic T:inc w
u The field of lighting technology is in the midst of steady change. In structural lighting, for example, market demands have shifted from standard to highly customized designs. Teamed up with designers, architects and the electrical trade, the Industrial and Building Systems and the Drives and Standard Products Groups provide state-of-the-art lighting solutions, Our innovative concept of " integrated light," combining artificial and natural lighting systems for optimum effect and efficiency, is opening up a whole new realm of possibilities. In this area, we are mixing the broad know-how of our building systems unit with the expertise of Osram, one of the world's three largest lamp manufac-Eif turers. This type of synergistic effort has also kept us at the
" L,...
competitive edge of innovation
],,,.. -
in the field of exterior lighting.
y Dramatic litumination for the Zurich Stock Exchange.
" ~~ "" "M Despite the currency factor While domestic business Osram is continuing its drive k mm A d
and continued strong erosion remained below expectations to globalize, and is focusing on New orders DMS.4 billion
,0%
of prices, we substantially due to a weaker construction expanding into the promising Sales.
- DM5 4 bilhon ' - 0%
boosted earnings, largely by sector and sluggish consumer markets of Asia and Eastern income
- DM340 milhon rigorously implementing a demand, we achieved solid Europe. We plan to expand capaal-variety of productivity-enhanc-growth in the rest of Europe production capacity in these
$ Pend'ng DM366 milion ing measures. Success in our and North America. We con-regions.
Employees, 27,000 North American market made tinued to build up presence in a major contribution to the the high-growth Asian market Looking at the current year.
Although the year brought year's results.
by forming a sales and produc-we expect to continue expand-a satisfactory increase in tion joint venture in Fosan, ing business volume. Further volume, sales remained at the Once again, growth was driv-Cnina.
streamlining measures should previous year's level. We were en by our range of innovative sustain the healthy level of especially affected by curren.
products such as halogen We now have production earnings.
cy fluctuations, since over lamps, compact fluorescents capacity in Eastern Europe as 85% of our global revenue is and hahde lamps. In the auto-well, following the acquisition generated by international motive lighting sector, we con-of a Slovakian lamp manufac-business.
tinued to reinforce our position turer. As part of our regional as world leader.
strategy, we opened an office in Moscow to complement those in Budapest, Prague and Warsaw.
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= ' Note.
L1995.
1994 Intangibles, fixed assets and investments Intangible assets
[}
901 592 l
Property, plant and equipment O
At cost 49,511 48,134 Less accumulated depreciation (31,842)
(30.737) 17,669 17,397 Investments
[r) 4,487 3.459 23,057 21.448 durrent assets l
Inventones D
26.055 26.429 Less advances received from customers (19,592)
(21,185) 6.663 5,244 Accounts receivable and miscellaneous assets
[)
16,782 15,123 Trade accounts receivable Other accoe 4 rec 6vable and miscellaneous assets 11,242 12,633 28.024 27,756 Marketable secunties t
21,366 21,136
/
) Other liquid assets 2,766 2.780 (vf i
58.819 56.916 Prepaid expenses 101 74 gwn-eurm,myp s e mm+ys,mm mvmenmw w w w e mperm.sw~*ne-m-m--,-yg km aggggm.-u.h w h &s=wnsedmaana.dedx.
cp s h i k m c e.u A m w,ggg 3l
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m 1995 1994-s.
t Shoreholders' equity and lishiReise.
Note -
w a..,_.n.-
-.~,.,
u~
wn '
Shareholders' equity Capital stock of Siemens AG E
Common stock (total number of votes 55.064.525) 2253 2,753__
Preferred stock (total number of votes 923.634) 46 16 2,799 2.799 Additional paid.in capital n
8,615 8,611 Retained earnings S
10.324 9.128 U._n..a.ppropnated consolidated net income 728 728 Minonty interest iP 1,526 1.458-Translation adjustment (1.501)
(914) 22.491 21,810._
Accrued liabilities it l
Pension plans and similar commitments 17.747 16.669
~ i.2U.. -
l Other accrued liabi_lities.
20,
- -,471
. 2.-
38.218 37.871 Debt if 5.141 4.518 Other liabilities E-(p Trade accounts payable 7,349 6,480
) Additionalliabilities
'j 8.291 7,306
\\
15,640. - --. -.._.13.._786-Deferred income 487 453 7,e mm, en.wyvggwnm y;g y gr,mmmmnny w w m, gym.g,,
nne m m,m C<1sesim'equityendNelmiles.3
~
, f ~ 81,977. '.
178,438. 1
.uum.
_u ws.m mm.ma.a..,.w w w.m.m<m,w
,, w.aum_.%waxww.m l
wmeneemmenn 50 Conso idated "inancia s :a':emen':s G
Years ended September 30 (in millions of DM) l
. Note 1995 199k Net sales i6 88.763 84.598 Cost of sales i
(62.126)
(58,254)
Gross profit on sales 26.637 26.344 Research and development expenses 0
(7,274)
(7,508)
Marketing an_d selhng expenses _
( _
Ge..neral administration e_xpenses _
_ _ _ _ 2 985)_ __ J12.831)_
Other operating income.
_ - _ 2,6. 06_). _. - - - - - _. -.
~--
(
(2.514) 4,479_. _ _ 1.872_
Other operating expenses __ _
(4.932L.__ _ (1,835)_
Restructunng charges and exit costs
__ i
_ (2,173).. _,_ 2.678L
(
1,146 850 Net income from investment in other companies 496 389 Net interest income 700 985 Other fjnancial ga ns (losses) 260 (114) 1,456 1.260 income from continuing operations before income taxes 2.602 2,110 Taxes on income from continuing operations
~
(518)
(461)
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m Extraordinary gain net of income taxes 3,4 Notinoesne 1wwwwweuw-mrepwmmquammenww.nwgw*pmpmerempeyy im* J 1993 %
rm i 2 084
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f Appropriation of not income 1995
~1994
. Net in_ come--
(260).--
Minonty interest in net. income. of co. nso.h.date. d. subsidianes 2.084.. - __- -.1,9. 9_3--
(232)
Minorjty jnteres_t in net loss of conschdated subsidianes 31_.
Transfers to retained earrings
__2___
_ __ _ _8 _
Baynce brought _ forward from pnor year
_.(1,045)
_ __4_
(1,129) m my w m m.nmyrn m me7,m m m sn,w w w. m wmem m an y e m w m m +
, n.m.
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Siemens worldwide consolidated statement of cash flows 4
1 1
51 l
I i
Years ended September 30 i
(in millions of DM) l g-s 7
g ki
~1995.
'1994 ;4 Lu.,_
_m 4
i Cash flows from operating activities l
Net income 2,084 1,993 l
Adjustments to reconcile net income to net cash provided by operating activities a
4 Depreciation, amortization and write-downs 4,677 4,538 l
l Increase in accrued liabilities 921 1,471 j
Gain on disposal of intangibles, fi.xed assets and investments (154)
(375)
Net income retained by associated companies (134)
(97)
]
l Other noncash (expenses) income (50) 321 t
l Change in current assets and other liabilities l
Increase in inventories (133)
(1,109) l (Decrease) increase in advances received f rom ct.siomers (1,772) 1,394 i
l Increase in accounts receivable (2,240)
(1,387)
Increase in liabilities 2,195 407 2
i Net cash provided by operating activities 5,394 7,156 Cash flows from investing activities Additions to property, plant and equipment (5,444)
(4,533)
Payments for acquisition of investments (2.021)
(1,188) 1 Proceeds from sale of pacemaker business 792 Other proceeds from sale of intang:bles, f aed assets and investments 772 642 Net cash used in investing activities (6,693)
(4,287)
Cash flows from financing activities Proceeds from issuance of new common stock 4
6 1
Repayment / redemption of bonds and debentures (29)
(1,183)
Increase in other debt 921 1,224 Prior year's dividends paid (724)
(721)
Other financing transactions 1,385 281 Net cash provided by (used in) financing activities 1,557 (393)
Effect of exchange rate and other changes on liquid assets (42)
(373)
-. mr m m m m m m m 7 7 m w w w
- w g n w ~ vem vm-nmms?~~~vem ah4aish usa:w,103 ?
~
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21 0 12
. W ilbGgidd essets%w.mm.mmumwe2h,an. a M.aam... -
- a..
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included therein: Marketable securities 230 2.903 l
Other liquid assets (14)
(800) p ldsensesatespeendist3BKm em m m e m e w evm m m -n e w w e rywp"c w m e w - w w w - v g'a 3IJgu vn.
- 24,132 ^
~' '23,916 -
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l l
52 qsonso ic a :ec inancia statemen:s G
D Acquisition of subsidiaries and associated companies Full consolidation of these companies would have increased In Mrch 1995, Siemens Nixdorf Informationssysteme AG (SNI) consohdated sales by approximately 1%. In addttion, we have acquired the remaining 82.6% of the shares in Pyramid Tech-omitted retirement beneht corporations and housing compa-nology Corporation, San Jose, Cahfomia, at a purchase price of nies, whose assets are assigned for a specific purpose, as well US$207 milkon. The company, together with its eight subsidiar-as those companies whose shares were acquired exclusively iss, has been included in the consolidated financial statements as financial investments.
since the date of acquisition.
Interim statements are used for consohdated subsidiaries The majonty interests in SGP Verkehrstechnik Ges.m.b.H.,
whose fiscal year differs from that of Siemens AG.
Vienna, in Siemens Schienenfahrzeugtechnik GmbH, Kiel, Germany, and in Teleco cavi S.p.A., Roseto degli Abruzzi, italy, investments in 32 (1994: 33) associated companies and in one together with ten of its subsidiaries, which were acquired (1994: one) subsidiary have been accounted for under the in fiscal 1994, have been fully consolidated for the first time.
equity method. A further 133 (1994: 133) associated companies in addition, three subsidiaries in Hungary were included in were not accounted for in this manner due to their relative the consolidated financial statements for the first time as of immatenality.
January 1,1995.
The principal subsidiaries and associated companies are listed A total of three subsidiaries in Germany and 35 foreign sub-on pages 64 and 65. A complete list of the Siemens sidiaries were consohdated for the first time, while 21 foreign organization's holdings is filed with the Commercial Registries companies are no longer included in the consolidated financial of the Berlin-Charlottenburg and Munich District Courts.
statements. Ten of these companies were merged with other consolidated companies.
In consolidating our investment in subsidiaries, we of fset the purchase price against the value of Siemens' interest in the The changes in the number of consolidated companies did not shareholders' equity of the consohdated subsidiaries at the have a material ef fect on the consolidated financial statements.
time of their acquisition or initial consolidation. Any resulting Goodwill of DM445 milhon resulting from first-time consolida-goodwill is capitalized as an intangible asset and amortized.
tions was capitalized as intangible assets.
The same pnnciples are applied in consolidating companies A 40% interest was acquired in ITALTEL SIT S.p.A., Milan, Italy.
under the equity inethod. Any resulting goodwillis included in March 1995, these shares, together with the interest in within the valuation of the investment in these companies.
Siemens Telecomunicazioni S.p.A., Cologno Monzese, Italy, a formerly fully consolidated subsidiary, were transferred to Intercompany transactions between consolidated companies Telsi Ltd., London, a joint venture formed with STET Societa have been eliminated from the consolidated financial state-Finanziaria Telefonica p.A., Turin, Italy, for 50% of the shares ments.
of the new company. As an associated company, Telsi Ltd.
has been accounted for under the equity method. The goodwill D Foreign currency translation of DM358 million resulting from the above transactions is in the individual company financial statements, foreign currency included in the acquisition costs of interests in associated receivables and payables are translated either at historical companies.
exchange rates, or at the lower or higher rates existing on the balance sheet date, respectively When foreign currency D Principles of consolidation receivables and payables of our foreign subsidiaries are hedged The worldwide consolidated financial statements include all by forward exchange transactions, they are translated at the significant domestic (German) and foreign subsidiaries. In addi-corresponding hedging rate.
tion to Siemens AG,60 (1994: 57) subsidiaries in Germany and 239 (1994: 225) subsidiaries in foreign countries have been The Company's foreign subsidiaries' financial statements are consolidated. 349 (1994: 352) companies that are either inactive translated using the year-end current rate method. Under this or have a low business volume are not included in the con-rnethod, intangibles, fixed assets and investments as well as solidated financial statements because they have little or no the other assets and liabilities are translated at the year-end significance for the presentation of Siemens' overall position.
current rate (the average of the buying and selling rates).
Revenues and expenses as well as net income are translated at the average rate of exchange for the year. The cumulative currency gains or losses resulting from the translation of net worth are recorded as a separate component of shareholders' equity.
i 53 g
(
U intangibles, fixed assets and investments as well as the non-Derivative financial instruments are generally valued on a stand-monetary essets and liabilities of the Company's subsidiaries alone basis. Foreign subsidiaries apply the principles of hedge in the highly inflationary economies of Brazil and Turkey are accounting for similar contracts.
restated at their current value or replacement cost and trans-lated at the year-end current rate of exchange. Revenues and Sales are recognized when deliveries are made or services are expenses are restated and translated in the same manner.
rendered to the customer. Sales related to long-term contracts are recorded in accordance with the completed contract 4 Principles of accounting and valuation method or upon the attainment of performance milestones.
The annual financial statements of the companies included in the consolidated financial statements are prepared according to Deferred taxes are accounted for under the liability method.
uniform principles of accounting and valuation. The tax-deduct-These taxes are based on temporary differences between the ible special reserves included in the individual financial state-financial statement and tax bases of assets and liabilities of the ments of the domestic companies have been reversed in the consolidated companies, as well as the temporary differences consolidated financial statements. Valuations in the annual resulting from consolidation entries. Net deferred tax asset bal-statements of companies accounted for under the equity ances resulting from temporary differences in the eamings of method that deviate from these uniform pnnciples have not the consolidated companies are not recognized.
been adjusted due to their immateriality.
Certain items on the consolidated balance sheet and in the Intangible assets purchased for consideration are recorded at consolidated statement of income have been combined. These cost and are amortized on a straight-line basis.
items are shown separately in the notes to the consolidated hnancial statements (Notes).
r s Property, plant and equipment is valued at acquisition or pro-l
' duction cost net of scheduled depreciation, generally using the in fiscal 1995, the Company made certain adjustments to its (jstraight-line method. The declining balance method is also used balance sheet and statement of income classification. Notes are by companies in Germany. Exceptional depreciation is charged now included in miscellaneous assets. In order to present net where a wnte-down in book value is deemed necessary.
interest income in a more meaningful manner, gains and losses on interest rate and equity derivatives are now reflected in Interests in nonconsolidated subsidiaries and associated and other financial gains (losses). The prior year's balance sheet related companies are valued at the lower of cost or fair value.
and statement of income have been restated to achieve con-sistency.
Inventones are carried at the lower of acquisition or production cost or market value. Certain inventories are accounted for D Statement of cash flows using the LIFO method.
The flow of funds in the consolidated statement of cash flows is classified into three categories: operating activities, investing The other current assets are stated at the lower of cost or activities and financing activities. The financial resources shown market value.
represent the Company's liquid assets, i e. marketable securi-ties and other liquid assets.
The accruals for pension plans of German domestic companies that provide for the contractual retirement benefits of employ-The effects resulting from changes in the number of entities ees and retirees are set up according to actuarial principles on consolidated have been eliminated from the relevant items of the basis of a method provided for in the German income Tax the three categories. The same applies to adjustments in value Act. Foreign subsidiaries establish accruals for pension plans caused by movements in exchange rates and noncash changes according to comparable actuarial principles.
in securities, whose effect on liquid assets is shown separately.
Prior year amounts have been adjusted to achieve consistency.
The other accrued liabilities include reasonable and sufficient allowance for all perceivable risks resulting from uncertain liabil-Net cash provided by operating activities includes interest ities and for anticipated losses from uncompleted transactions.
income of DM2,578 (1994: DM2,474) million and interest expense of DM664 (1994: DM693) million.
in I
\\
t
/
v i
I
E 54
,Ons0 IC a~:ec ~lnanCla s
s:a :emen:s G
D Intangible assets and property, plant and equipment y
' Acquisition or production cost Accu-Deprecia-
!'l; Trans-mulated tion /amor-t.
lation deprecia-Not value Net value tization f
adjust- ' Addi-- Reclassii Retire-tion /amor-as of as of during the
{(in millions of DM)'
9/30/94 ment tions fications ments 9/30/95 tization 9/30/95 9/30/94 fiscal year -
Intangible assets Patents, licenses and similar nghts 623 (33) 84 205 469 273 196 243 110 Goodwill 387 (36) 450 801 96 705 349 58
~
1,010 (69) 534 205 1,270 369 901 592 168 Property, plant and equipment Land, equivalent rights to real property, and buildings, including buildings on land not owned 14,257 (194) 650 97 370 14.440 6.044 8,396 8.600 619 Technical equipment and machinery 13,763 (206) 1,356 280 682 14.511 10,704 3.807 3.795 1,332 Other equipment, plant and office equipment 16,442 (292) 2,265 206 2.001 16,620 13.224 3,396 3,330 2,051 Equipment leased to customers 2.775 (54) 454 4
628 2.551 1,860 691 792 452 Advances to suppliers and construction in progress 897 (43) 1,174 (587) 52 1,389 10 1,379 880 48,134 (789) 5,899 3,733 49.511 31,842 17,669 17,397 4,454 p,nm c > ny.,
g r-n., m r.
,,, y g. n y,.
-,~r,-,n.nn.n. ~ ~ _-n;
,m
,-n.~
f~
L49,144 (858) 6,433 :
.3,938 50,781 32,211 :18,570. 17,989-E 4,622.
c n aswuu u w_. wc h w.x.a w m
- n. 2
_..m
_s Patents, hcenses and similar rights are amortized over periods ment and plant and office equipment, in general, over five years.
not exceeding five years, while amortization of goodwill is Equipment leased to customers is depreciated over periods recorded for periods not exceeding 15 years.
not exceeding five years. Low value items are fully expensed in the year of acquisition.
Depreciation is charged on residential, office and factory build-ings over a maximum of 50 years, on technical equipment and Depreciation on property, plant and equipment includes DM268 machinery over a maximum of ten years, and on other equip-million in exceptional depreciation.
O investments 4
s -
Acquisition cost Trans-
- Accu-Accu-lation mutated mulated Net value Net value adjust-Addi-Reclasci-Retire-write-equity as of as of i(in millions of DM)
. 9/30/94 ment tions fications ments 9/30/95 downs adjustment 9/30/95 9/30/94 Interests in subsid< aries 1,369 (10) 306 65 602 1,128 1 51 (19) 958 1,206 Interests in associated companies 2,519 (152) 1.199 36 27 3.575 (873) 2,702 1.433 Miscellaneous investments 1,067 (5) 276 (101) 233 1.004 177 827 820
- - mme.m m - ~7,m3wme---mm-m
<~
y--,
7 - - --,
L,4,955 (167). 11,781 '
- - - 862L 5,707
. 328 ~
(892) 4,487 -
3,459.
pms
.um s.
m u.
u
_,~
- r
\\
l i
The additions to interests in subsidiaries relate predominantly to O Accounts receivable and miscellaneous assets acquisitions and the formation of new companies Retirements mmm.mmmmmmmwm?
[
l relate primarily to subsidiaries which are now fully consolidated.
K
-,.... e q - 2 Due sherk
'Due sher
[(in millions of DM) f 9G0/95 oneyeari900/94 eneyearM uniwwww+m
.waw.m.,x ;w,.m
. Miscellaneous. investments include interests in other compan.ies as well as long-term loans.
Trade accounts receivable 16,782 1,578 15.123 1,244 l
During the year, interests in subsidiaries were written down Other accounts receivable i
l by DM43 million, and miscellaneous investments by DM12 and miscellaneous million.
assets Receivables from Long-term loans bearing nominal or no interest are stated at nonconsolidated l.
their discounted cash value.
Subsidianes 2,732 238 2,169 117 l
Receivables from Q inventories associated and i
related companies 2,964 841 3,293 1,071
~
rm,m bns of DM)l:
. 'I
,.;-9/30/95 1 9/30/94 @
Miscellaneous y..
,,mmmw m g,mmy y._.,.,,,,
[(in milli 2.o. u u m ~,.. - aa m.%
%.a..%d assets 5,546 596 7,171 799 Matenals and supplies 3,162 2,779
~ - - - - - ~ - ~
Work in process 4,488 4,428 11,242 1,675 12,633 1,987
- g q ]!.
s{ed products and merchandise 5,171 4,522 g
Mgg
~*"#
l Cost of unbilled contracts 11,616 12,814
( k Advances to suppliers 1,618 1,886 Accounts receivable due after one year which bear nominal or no interest have been discounted. Accounts receivable and m w p *K M W "Zl4 %" # "M *M M 439 '
miscellaneous assets are stated net of an allowance for credit
-mmew em m wm %
~,
d"', V; p* *
^ "
and country risks of DM2,583 (1994: DM2,467).
l Acquisition or production cost is determined on the basis of the I
weighted average cost of cumulative additions. Production cost Miscellaneous assets include DM143 (1994: DM269) million I
includes an appropriate proportion of material and production of net deferred tax receivables resulting from consolidation.
overheads. An allowance of DM3,253 (1994: DM3,409) million entries. In addition, miscellaneous assets include certain 1
was provided for declines in value due to slow-moving items interests in subsidiaries amounting to DM935 (1994: DM855) and technics! obsolescence.
million. These relate to interests in subsidiaries which were acquired exclusively as financial investments. These companies l
are generally active in real estate business.
l l
@ Marketable securities l
i(in millions of DM) :y,y n px,,- - - m_n:,,,,ymq?y 9/30/95 s : 9/30/94 t
Lu, m,% e.ma;;;awwwmaahaaa Treasury stock 5
26 Stock certificates 943 928 Fixelincome secunties 949 1,495 Fund shares 19,469 18,687 mm,,, wem mmmmm a.. n.
- g\\..
yg,Y yg4 2 y 1R}
W.?
-w g
,q gg l
..-m i
l O V
l
E 56
,0ns0 ICa:ec inancial v
sta:emen:s G
In fiscal 1995, Siemens AG purchased 84,889 shares of com-The authorized capital of Siemens AG remains unchanged at mon stock, with a total par value of DM4 million, or 0.2% of DM800 million. On March 28,1991, the Annual Shareholders' the capital stock, at an average price of DM651.20 per share, Meeting authorized the f0naging Board to issue up to DM500 in order to of fer them to employees for purchase. Including the million (nominal value) in new shares with subscription rights 68,483 shares of treasury stock held at the beginning of the for shareholders as well as for holders of stock warrants fiscal year,143,176 shares, with a total par value of DM7 million, (authonzed capital 1). This authorization will expire on March 1, or 0.3% of the capital stock, were sold to employees at a 1996. A lawsuit was filed by a shareholder contesting another preferential price of DM376.50 per share. At the close of the resolution by tho Annual Shareholders' Meeting on March 28, fiscal year,10,196 shares of common stock, having a total par 1991 authorizing the Managing Board to issue up to DM300 value of DMO.5 million, or 0.02% of the capital stock, remained million (nominal amount) in new shares for which the subscrip-in treasury. These are valued at DM450 per share.
tion rights of shareholders is excluded (authorized capital ll).
This complaint was affirmed by the competent German courts.
The market value of the marketable securities exceeds their The Company's appeal to the German Federal High Court of book value by DM1,401 (1994: DM969) million.
Justice against this order caused the High Court to refer the issue to the European Court of Justice seeking a decision as to Write-downs made in prior years were reversed for the first whether the requirements imposed by the German courts on time in 1995 if the market value of such securities increased the exclusion of subscription rights in connection with author-during the year. The effect on net income was not material.
ized capital are compliant with the Second Council Directive (Capital Protection Directive) adopted by the Council of the Q Movements in shareholders' equity European Communities on December 13,1976. The European Court of Justice has not yet concluded on the issue.
- e.,.
7 m
y.
,.y.m -
{ September 30,1994 (in millions of DM)
21,810 %
m -
4 The other authorized capital amounts to DM162 (1994: DM162)
Capitalincreases of Siemens AG 4
million. Of this amount, DM150 million is reserved to secure Transfers to retained eamings the rights to purchase common shares of Siemens AG under from net income of 1995 1,129 the warrants attached to the 8% U.S. dollar bonds of Other changes in retained earnings 67 1,196 1992/2002 issued by Siemens Capital Corporation, Wilmington, Delaware. The stock warrants grant option nghts for a total of Payment of pnor year's dividend 3,000,000 common shares, which may be exercised until June including balance brought forward (728) 2,1998. The option period is automatically extended for periods Unappropnated consohdated of one year terms - but not more than two years - if the net income of 1995 728 market price of the Siemens share is less than the option price at the end of the option penod. The option price is DM693. The Change in minonty interest 68 other authorized capital of DM4 million provides for the settle-Change in translation adjustment (587) ment offered to former shareholders of SNI AG who have not
. --. mmrmmmw amvem tendered their SNI share certificates by September 30,1995 f$e,p, tember30,1996 J ' '
i 22,491 9 under the settlement offered by Siemens AG pursuant to 1320
.weaa.MRA, wa %
U par. 5, German Corporation Act. The remaining other authorized M Capital stock and additional paid-in capital capital of DM8 million secures the rights to purchase common The capital stock of Siemens AG amounts to DM2,799 million shares of Siemens AG that were granted to the holders of the and is divided into 55,064,525 common shares and 923,634 Nixdorf 1989/97 convertible loans following the integration oi SNI AG into Siemens AG.
preferred shares, each with a par value of DM50. Each share is entitled to one vote. Under conditions set forth in 623 of the Articles of Association, preferred stock is entitled to six votes per share in a second vote that may be demanded by the Retained earnings include a reserve for treasury stock amount-holders of preferred stock.
ing to DM5 (1994: DM26) million. The reserve was reduced by De WM W@ Wm mm eM eady During the fiscal year, capital stock increased by a total of DMO.3 million through the issuance of 5,319 common shares
@.nonty interest from the other authorized capital as a result of the settlement Minonty interest represents the minonty shareholders' propor-offered to former shareholders of Siemens Nixdorf Informa-tionate share of the equity of consolidated subsidiaries, primar-ily Siemens AG Dsterreich, Vienna; Siemens-Albis AG, Zurich; tionssysteme AG (SNI AG), Paderborn, Germany. The premium of DM3.4 million was recorded as additional paid-in capital.
and Siemens Ltd., Johannesbeg.
i 57
(]
4 v
@ Accruedliabilities.
O Debt and other liabilities The accruals for pension plans at Siemens AG and its domestic p m m mverm m mwwm w m.
subsidiaries provide for the direct contractual retirement bene-R1 l C,.
- f
~3 i Due within i i 1 Due withini Gn millens of DM) ;
""""~""" ' ""~. onogy J9/3045;oneyear. 9/3044 fits of our employees and retirees. Retirement benefit corpora _
tions in Germany provide for 20% of Siemens AG's pension Debt obligations to employees subject to collective bargaining agree.
ments and to their surviving dependents. The pension accruals Bonds 1,083 1,199 are based on discounted amounts using an assumed rate of Loans from banks 1,763 1,393 1,569 1,280 interest of 6%. Moreover, exceptional contributions of DM392 million were made in 1995 to the accruals for pension plans in Notes and other loans 2,295 2,143 1,750 1,573 Germany to account for the commitment to raise future retire-
{: "'*dingd yML 9
h '.
- M*W5 g
. N-*pe%
(g i
ment benefits. In addition, accruals are established for the
')
retirement benefits of the employees and retirees of our foreign subsidiaries according to comparable actuarial principles using Debt with a remaining term of more than five years amounts to applicable local interest rates, unless the obligations are DM1,330 (1994: DM1,326) million.
covered by pension funds. The vested rights of our German e
employees and retirees to receive retirement benefits are Notes and other loans include essentially commercial paper insured with the Pensions-Sicherungs-Verein (PSVaG), an denominated in U.S. dollars and various European currencies at independent pension guaranty association. The existing pension interest rates ranging from 2.53% to 10.57%.
commitments of the independent retirement benefit corpora-tions and pension funds amount to DM4,328 (1994: DM4,332)
Debt of DM262 (1994: DM199) million is secured, DM65
,million and are covered by these organizations' assets of (1994: DMS 4) million of which, prirnarily outside Germany, is
. SMS,357 (1994: DM5,370) million.
secured by mortgages. In Germany, debt of DM15 million is V
secured by claims under a Hermes export credit guarantee.
The accruals for pension plans also include the obligations of
- In some countries, in conformity with local practice, we have our U.S. subsidiaries to provide postretirement benefits other executed promissory notes and pledged securities to secure than pensions for active and retired employees amounting to our debt.
DM712 (1994: DM723) million, which are determined on the basis of the entry age actuarial method using an assumed t-rm*w~w'mnmmmmrermw-m discount rate of 8% and taking into account the expected rate
[
ADhah_gogour y
of increase in cost.
i Siemens Capital Corporation.
\\
mmwwm& wq m m m e-~ve~m 8
2E02 N
U.S. dollar bonds USC 625 887 y
Lammamm,mmsM6Mm" Siemens Western Finance N V, Provisions for taxes 2,095 2,099 Willemstad, Curacho 1986/2001 U S. dollar zero Deferred taxes 144 91 coupon bonds with warrants US$
122 196 Employee related costs 6.287 6,574 1,083 Business related accruals 6,537 7,096 Remediation and environmental protection 1,666 1.367 Other 3,742 3.975 NET j
b[gi,g gy,Md. g[ N f D.. T h f 3 h ]
p qgg;g;h a L u a q
l Business related accruals include primarily accruals for warranty obligations, anticipated losses from uncompleted transactions, and penalties for contract performance delays.
U 1
Notes 58
, sons 0 ICa:ec inancia s:a:emen:s G
y,
-n hy 0 Other operatingincome
((inmillionsof DM);
a 9/30/95' one year 9/30/94 one year.
Other operating income relates mainly to foreign exchange Kwaamm au"-'---
gains of DM3,864 (1994: DM1,419) million and gains on Other liabilities the sale of real property amounting to DM131 (1994: DM121) 0"'
Trade accounts payable 7,349 7.258 6.480 6,288 Additional habikties
@ Other operating expenses Liabilities to Other operating expenses include primarily foreign exchange nonconsolidated losses of DM4,160 (1994: DM1,486) million, exceptional subsidiaries 568 559 434 429 contributions to pension plan accruals of DM392 (1994: DM111)
Liabihties to associated million, and the amortization of intangible assets resulting from and related companies 377 254 549 432 acquisitions.
Miscellaneous liabilities 7,346 6.788 6.323 5.686
@ Restructuring charges and exit costs 8.291 7.601 7.306 6.547 Restructunng charges and exit costs comprise expenses for severance benefits including the related accruals and liabilities, j
efemwmmmmynewmm-mn Es.t
?
15,640C 14,859 <13,786 ) (12,835 g exceptional wnte-downs, gains and losses resulting from w.,Auch.h-w&wam.wmu disposals of property, plant, equipment and inventories, and accruals associated with plans to exit specified activities or The other liabilities with a remaining term of more than five cbse faches. Msss br msMunng darges and ed years aggregated DM173 (1994: DM282) million. Of this costs are set up when the decision to exit the activities or amount, DM13 (1994: DM10) million is secured.
close the facilities has been reached and the requisite measures Tax liabilities totahng DM991 (1994: DM911) million are included in miscellaneous liabilities. In addition, this item con-DM1,823 (1994: DM2,299) million of the aggregate amount is tains liabilities of DM1,772 (1994: DM993) million mandated by accounted for by employee related costs.
the social security program. Since the terms of severance fg a co nt a c
c ng d perm on t e seve a ce p yments a recl s f a-he n
i pa s a G
tion was required from other accrued liabikties to miscellaneous facility' liabilities. Moreover, this item consists of outstanding statutory social welfare contributions and statutory retirement benefit A
- Net income from investment in other companies obligations in foreign countries.
3 (in millions of DM) '
1995' 1994 Net sales
~A
- ~
n
^ >
Net sales include our income from rental and license agree-Income from investment in other ments of DM1,902 million and DM201 million, respectively.
companies 131 84 Our rentals receivable in the future under leases with noncan-Income under profit-and-loss celable minimum terms are as follows (in millions of DM):
transfer agreements 53 51
~
Share in eamings resulting m.e
,4
-,,.m r
from equity consohdation 351 268 t ;1996' !1997^
1998
.1999 l 2000f thereafterj2
,.h.m
- _~ m.
Losses absorbed under 1,128 970 823 678 536 1.270 profit-and loss transfer agreements (39)
(14) prp v-m m m erm we em E
'496 389 4
@ Functionalcosts bMLaamawbaah=hwwd Cost of sales, research and development expenses, mariteting and selling expenses, and general administration expenses Net income from investment in other companies includes DM81 (1994: DM38) million of income from subsidianes.
do not include restructuring charges and exit costs. These expenses are shown under a separate heading in the statement of income.
Earnings resulting from equity consolidation consist primarily of our share in the camings of Bosch-Siemens Hausgerite GmbH, Govemment subsidies in the amount of DM159 (1994: DM196)
Munich: GPT Holdings Ltd., London; and Equitel S.A., Cuntiba, Brad million have been of fset against research and development expenses.
1
m -.~
59
. n, l
Q 1
8 Not interest income income tax expenses include German corporate income and m gm enwmmymyewergv-3 local income taxes, as well as the comparable foreign taxes p", millions of DM)g. _".,
f,.
T1995 1 g 1994) relating to income. Such taxes are determined in accordance
" ~ ' " ~ ~ " * " "
with the tax laws applicable to the individual companies.
Interest and similar income 2,386 2,731 Attributable to subsidiaries 1145]
(180]
An income tax benefit was recorded in Germany due to the declining taxable income and the lower tax rate on the pro-Less interest and similar expenses (704)
(796) posed dividend.
l Attnbutable to subsidiaries (32)
(3 91 Interest cost component of C Personnel costs allocation to pension plan accruals (982)
(950) m er 5 7 t.. mm7
+:m
~
~
Wages and salaries 28.232 28,505 N Otherfinancialgains(losses)
Statutory social welfare contnbutions and expenses for optional support payments 4,718 4,698
{p.g&wm me mw puye em a _ mg
. millions of DM)4,.
.i J19951, 1994b!
Expenses relating to pension plans
%.m,aw.ma%-ww.wam
_:",463
< ~
and employee benefits 2,517 2.796 i
Other financial gains 624 1
Other financiallosses (291)
(1,215) hb l
Write <fowns on investments and on marketable secunties (73)
(362)
The expenses relating to pension plans and employee benefits I
have been reduced by the interest cost component included in k
the allocation to pension plan accruals in the amount of DM982 (1994: DM950) million. This amount has been charged as an Other financial gains and other financial losses include gains expense in arriving at the total of net interest income.
and losses resulting from the retirement of investments in other The average number of employees in fiscal 1995 was 376,100 companies, in addition, these accounts include gains and (1994:387,900). In this figure part-time employees no longer losses resulting from the retirement of marketable securities as count as full units but uo included on a proportionate basis.
l well as gains and losses on derivative interest rate and equity The prior year figures have been restated to achieve consis-instruments.
tency. The employees were engaged in the following activities:
Of total other financial gains (losses), gains of DM203 (1994:
[
^ "~
^'
'1995
1994b losses of DM38) million are accm.nted for by financing activities w
a w
and gains of DM57 (1994: losses of DM76) million are due to Manufactunng 158,100 157,400 investing activities.
Sales and marketing 126,300 133.800
$ Income tant 4 Research and development 44,700 47,300 g(in mdhons of DM) ; he ymme ymy-mw m m Administration and general services 47.000 49.40C 1995t
- 1994 l
as l
m- -
'e l
Germany (1995 income)
(60) 94
@ Other taxes l
Foreign 531 542 Other taxes relate primarily to property taxes. They are recog-i 471 636 functional costs.
Deferred taxes 47 (175) 1 Tax expense on income from continuing operations 518 461 Income tax expense on extraordinary gain 29 I
t a
f
Em 6]
Conso idated financia statements G
[] Segment information
! Business segments External sales Intersegment sales Total sales Pretax income in DM million in DM million in DM million -
in DM million 1995-1994 1995 1994:
1995 1994 1995 1994 Energy 13,139 11,955 1,113 1,124 14.252 13.079 64 137 Industry 17,975 16,159 5,469 5,278 23 444 21,437 702 119 Communications 18,395 19.623 1,193 804 19,588 20,427 645 1,134 Information 11,382 10,414 1,416 1,255 12,798 11,669 62 (319)
Transportation 7,699 7,219 68 98 7,767 7,317 (18) 201 Health care 6,728 7,490 49 58 6,777 7,548 100 239 Components 5,861 4,775 1,315 975 7,176 5,750 1,018 300 Lighting 5,389 5,383 55 59 5,444 5.442 340 291 Other 2,195 1,580 9
72 2.204 1.652 78 77 Consolidations (10.687) (9,723)
(8)
(93)
Total business segments 88,763 84,598 10,687 9,723 88,763 84,593 2,983 2,086 Other, consolidations (381) 24 p y,,: - _ -,g m y g. - - y m -,-,,y. y,, y.w. m y, m _.
m,.m
,y~,,
, m_-
5 Siemens worldwidei 88,763. 84,598 e 10,687. ?9,7231 88,763.1. 84,598 -
s 2,602 ' 2,110 L u
sa
,m.-
,,x ma_:
.a -
w.wa mmw.
,n.m%.-, mmt.e m
Business segments Depreciation and Assets Capital expenditures -
amortization in DM million in DM million in DM million 9/30/95 9/30/94 1995 1994-1995 1994 Energy 12.582 11.042 404 378 733 552 Industry 10,160 8.924 475 439 537 598 Communications 14,153 14.212 854 863 804 856 Information 11,729 10,794 426 442 478 550 Transportation 4,754 3,704 417 338 252 309 Health care 5.843 5.607 238 276 215 264 Components 5,957 4,488 1.563 894 693 574 Lighting 4,717 4,578 366 286 330 338 Other 5563 6,088 659 543 466 376 Consolidations (2,022) (2,001)
Total business segments 73,436 67,436 5,402 4,459 4,508 4.417 Other, consobdations 8,541 11,002 42 74 56 56 m.7,,,~,-
~..,-,- mm m
,..w -,w m y
,w I Siemens woddwide1
- 81,977 78,438 5,444i : 4,533 -
L 4,564 - 14,473' )
ku... ~
u..
a ~
x,.
a,w u w w
a
~: u For segment reporting purposes, related actwities have been Pretax income is equal to income from continuing operations combined into business segments.
before income taxes. In accordance with the Company's inter-nal pnnciples of management control, the business segments' "Other" includes activities not traceable to business segments income includes general corporate expenses, interest, restruc-as well as our Corporate Services.
turing charges and exit costs.
l l
61 i
i l
The adjustments to reconcile the total of the business segments gains or losses are also included within this reconciliation, 5
to the worldwide consolidated figures relate mainly to those together with the exceptional contributions to the pension plan i
investments which are accounted for centrally, and to liquid accruals.
t assets not attributable to the business segments The resulting pmww r
s
- m. o m 4
- ..s 1;Geopophie segments 1 Sales by.'.
J Sales by/...
~ Assets "
- O 1
p 4
customer location g
- company location.
' Pretax income rT in DM million:
L in DM million 1
- in DM million...
in DM million '..,
h
.1995 '
1994; u
1995 ' 1994.
1995; 1994 i9/30/95, 9/30/95; 1 v:
u uc w.+
s.
.m a
w Germany 37,857 35,771 65,117
-._. _._ _ _.. _ _.._' 5 9,4 3 8 771 725 47,938 46,507 i
j Europe (excl Germany) 23,145 21,848 23,438 23,093 1,224 1,139 19,481 17,547 i
l Americas 14,175 14,813 14,349 15,027 328 31 12,469 12,531 l
i l
Asia-Pacific 8,617 7,370 4,665 4,179 233 187 2.697 2,490 Other 4,969 4.796 833 798 49 58 608 513 Consolidations (19,639)(17,937)
(3)
(30)
(1,216) (1,150)
I A? Sales include exports to customers and subsidiaries totaling DM27,260 (1994: DM23,667) million shipped to the following regions:
(U) Asia-Pacific DM7,399 (1994:
Europe (excluding Germany) DM12,035 (1994: DM10,470) million; Americas DM4,070 (1994: DM3,785) million; DMS,834) million; Other DM3,756 (1994: DM3,578) million.-
pv.
m,
n ieseyephis b:
. ~ Depreciation t oegments Capitalexpenditures and amortization p
T in DM million u in DM million.
[.;.
,1995
- 1994:
- 1995 19941 w
,n Germany 3,345 2,440 2,969 2,854 Europe (excl. Germany) 900 890 791 799 Amencas 826 871 618 664 Asia-Pacific 325 285 165 133 Other 48 47 21 23
- .,- wM w %,.$$n =
w,;.= m y.?i djA,ggg g g gp3' w
,n 1P i f4 hw.a
,uuawwuamm a
Segment reporting by region shows the amounts accounted for by the consolidated companies in the geographic segment l
concerned. Dividends transferred to parent companies have been eliminated.
l 4
i Q
i l
l 1
liaaa 62
,onSO ICa:ec inancia v
sta emen:s O
C Remuneration of the Supervisory Board Rental expense in 1995 totaled DM329 (1994: DM324) million.
and the Managing Board, and loans granted Total future payment obligations under leasing agreements are Provided that shareholders approve the proposed dividend as follows (in millions of DM):
at their Annual Shareholders' Meeting on February 22,1996, the amount authorized to be paid for fiscal 1995 will be DM1.1 1996 -
1997' 1998
-1999 ~ 2000 ' thereafter (1994: DM1.1) million for the Supervisory Board; DM16.1 (1994: DM17.2) million for the Managing Board; and DM20.4 319 295 279 274 261 1.871 (1994: DM20.5) million for former members of the Managing Board and their surviving dependents. Pension commitments to former members of the Managing Board and their surviving G Derivative financialinstruments dependents are covered by an accrual of DM146.5 (1994:
The Company uses both listed and over-the-counter (OTC)
DM153.1) million.
derivative financialinstruments to hedge the interest rate and currency risks associated with its operational business as well Loans to members of the Managing Board totaled DM2.8 as its investment and other financing activities. Where losses (1994: DM2.2) million (repaid in 1995: DMO.4 million). These on derivative financialinstruments are anticipated at the bal-loans bear interest of up to 6% and have contractual terrns of ance sheet date, accruals are set up to cover the net negative up to 12 years.
cash positions. Gains on net unrealized positive cash positions The members of the Managing and Supervisory Boards of Siemens AG are listed on pages 68 and 69.
-m
- National amount Fair value C Guarantees and other commitments
{ (in millions of DM) 9/30/95 9/30/94 9/30/95 9/30/94 c (in millions of DM)-
9/30/95: 9/30/94 Forward exchange i
contracts 23.947 15.292 357 146 Discounted tmlls of exchange 171 305 Interest rate swaps and Guarantees 354 194 corntuneo interest rate /
Warrantres 1,737 1,601 ptions 3.146 2,564 (18)
(30) included therein.
warranties provided to subsidiaries
[14)
[4]
Other forward contracts 9.737 5.041 (7) hGia u d a M ual i & a. w & M[ & Lekb h
NE"7
[
7 Collateral for third party liabilities 1
1 4
Q Leasing agreements The notional amount of derivative financial instruments is the At September 30,1995, we had payment obligations under real sum of all purchases and sales. The fair value of such instru-estate property leases and under long-term lease agreements ments is based on available quoted market pnces or derived for movable and immovable assets with an aggregate value from such prices.
of DM3,299 (1994: DM3.488) million, including DM75 million to nonconsolidated subsidiaries. Under the terms of the leases, Our credit exposure to counterparties under outstanding the agreements do not transfer the effective ownership rights denvauve financialinstruments net of offsetting agreements to the leased properties. They are therefore not capitalized in arnounted to DM580 (1994: DM325) million. To rninimize the consolidated financial statements.
this credit risk we deal exclusively with creditworthy domestic and foreign banks and are increasingly using master netting agreements.
O
V L#
,-y 8 Other financial obligations Proposal for appropriation of net income We are committed to making capital contnbutions of DM235 available for distribution (1994: DM19) million to other companies, including DM221 1995 net income of Siemens AG available for distribution was (1994: DM IS) milhon to subsidiaries. We are liable for contribu-DM727,846,067. At the Annual Shareholders' Meeting on tions in the amount of DM947 (1994: DM728) million that were February 22,1996, we will propose that this net income be not fully paid in, including DM745 (1994: DM716) million to non-used to pay a dividenri ' DM13 on each share with a par value consolidated subsidiaries, as limited partners pursuant to 5171 of DM50, based or.
spital stock entitled to the dividend,
)
of the German Commercial Code.
and that the amout. attributable to treasury stock be carried forward.
We are jointly and severally liable and have capital contribution obhgations as a partner in companies formed under the German Civil Code, through which we have concluded profit-and-loss transfer agreements with other companies, as partners in commercial partnerships and in a European Economic Community of Interests (EECI), as a former member of residential building cooperatives, and as a participant in various joint ventures.
Berhn and Munich, December 1,1995 gSiemens Aktiengesellschaf t
(
)
VThe Managing Board The consolidated financial statements, which we have audited in accordance with professional standards, comply with the German legal provisions. With due regard to the generally accepted accounting pnnciples, the consohdated financial statements present a true and fair view of the Siemens group's assets, liabikties, financial position and earnings. The general review of the Managing Board is consistent with the consoli-dated financial statements.
Munich, December 6,1995 KPMG Deutsche Treuhand--Gesellschaf t Aktiengesellschaft WirtschaftsprUfungsgesellschatt Lanfermann Dr. Hoyos WirtschaftsprOfer WirtschaftsprOfer (independent auditors)
A I
\\
._ Y
64 Principal suasiciaries anc associatec! com aanies S
l
share %
(DM million)
- 1. Subs _idiaries Gefmany Si,ernens Nixdorf Informatjonssysteme AG, Paderborn 4,250 443 2,606 100 Osra_m_GmbH, Berlin and Munich 2,032 118 1,502 100 Vacuumschmelze GmbH, Hanau 415 21 102 100 Siemens Microelectronics Center GmbH & Co. OHG, Dresden 2
(137) 60 100 Siemens Finanzierungsgesellschaft fur Informationstechnik mbH, Munich 55 251 2,308 100 Duewag AG, Krefeld-Uerdingen 905 (51) 83 98 Sjemens Matsushita Components GmbH & Co. KG, Munich 800 125 198 502' Eurpp_e Siemens S.A., Saint-Gilles (Brussels) _
1,232 39 429 100 Siernens A/S, BallerupjCopenhagen) 397 8
83 100 Siemens Osakeyhti6, Espoo (Helsinki) 305 15 57 100 Siemens S.A., Saint-Denis (Paris) 814 6
72 100 Siemens A.E., Elektrotechnische Projekte und Erzeugnisse, Athens 166 9
56 100 Siemens plc, Bracknell (London)*
1,405 24 204 100 Siemens Ltd., Dublin 110 3
8 100 Siemens S p.A., Mila l 1,302 109 100 Smens Nederland N V, The Hague
- 1,151 37 279 100 Siemens A/S, Oslo" 703 8
165 100 Siemens AG Dsterreich, Vienna" 3,321 95 378 74 Siemens S.A., Lisbon" 603 33 205 100 S em. ens AB S_tockhol_m 498 2
19 100 i
L SmensJ9ma AB, Solna (Stockholm) 485 40 164 100 Siemens-Albis AG, Zurich 5 1,563 47 364 78 Semen _s S.A., Madrid 696 2
119 100 Simko Ticaret ve Sanayi A.S., Istanbul 308 11 35 75 Siemens _RhBudapest 108 (6) 35 92 _
S*!ngns Nixdorf Jnformation Systems S.A1N V, B,russ_e@
389 11 158 100 S emens Nixdorf Information Systems S_A., Cergy (Paris)"
429 (52) 40 100 Siemens Nixdorf Information Systems Ltd., Bracknell (London) 444 1
29 100 376 49 51 S emens_Nixdorf Informatica S.p. A., Mdn Semens Nixdorf Informatiesystemen B.V. Zoetermeer/ Netherlands
_2_03 9
61 100 S!emens Nixdorf Informationssysteme Ges.m b H., Venna 443 1
81 100 Siemens Nixdorf Informationssysteme AG, Kloten (Zurich) 271 5
33 100 Semens Nixdorf Sistemas de Informaci6n S.A., Tres Cantos (Madrid) 376 (3) 189 100 Osram S A., Molsheim/ France 288 4
58 100 Osram Ltd, Wembley (London) 176 43 100 Osram Societh Riunite Osram Edison-Clerici S p.A., Milan 408 63 100 h These figures comply with the financial statements prepared in accordance 2' Subsidiary pursuant to 1290. par. 2(1) of the German Commercial Code with the specific generally accepted accounting principles in each country
- Sales, shareholders' equity and earnings according to the consolidated and do not reflect the amounts included in the consolidated financial financial statements statements Shareholders' equity and earnings are translated at the year-end
The company was formed in March 1995 and will prepare its first financial current rate, and sales are translated at the average rate for the year statements as of December 31.1995 N Nat a subsionary pursuant to %290 of the German Commercial Code
65
(-
%._)
at September 30,1995 -
Sales" -
Earnings" Shareholders' Siemens (DM million) (DM million) equity" share %
(DM million)
Americas Siemens U.S. (consolidated financial statements) 11,484 32 2,122 100 including:
Siemens Automotive Corporation, Newport NewsNA Siemens Communication Systems, Inc., Boca Raton/FL Siemens Components, Inc,, Iselin/NJ Siemens Energy & Automation, Inc., Atlanta /GA Siemens Medical Systems, Inc., Iselin/NJ Siemens Power Corporation, Bellevue /WA Siemens Rolm Communications, Inc., Santa Clara/CA Siemens Transportation Systems, Inc., Iselin/NJ Siemens Nixdorf Information Systems, Inc., Burlington/MA OSRAM SYLVANIA INC., Danvers/MA Siemens Electric.L_td., Mississauga (Ontario) 847 (16) 124 100 Siemens S.A. de C.V, Mexico City" 164 13 82 100
_Osram_SA_de C.V, Tultiti n/ Mexico 38_
(1) 3 100 Siemens S. A., Buenos Aires 597 24 116 100 Siemens S A, S o Paulo$'
644 (12) 565 83 Siemens S.A., Bogoth 114 8
62 94 7
9emens S.A., Caracas 42 3
4 100
'uds' ram Argentina S. A.C.I., Buenos Aires 74 (5) 32 66 psram do BrasihCompanhia de Lbmpadas El6tricas S. A., Osasco 138 4
67 100 Asia: Pacific, Siemens Ltd., Richmond (Melbourne)"
410 14 58 100 Siernens Ltd., Bombay 394 15 118 51 Siemens K.K, Tokyo 307 16 63 83 S emens_ Components (Advanced Technology) Sdn. Bhd., Malacca/ Malaysia
- 858 21 130 100 t
Siemens Pakistan Engineering Co. Ltd., Karachi 10_7 _
9 28 64 _
Siemegs Cpmponents (Pte) Ltd., Singapore 1,310 37 173 100 S'emens Telecommunicatjon Systems Ltd, Taipei
- 183 6
187 60 Osram-Melco Ltd., Yokohama 228 (2) 67 51 Other
~
Sgpns (td, Johannesburg" 1,005 18 156 52 _
- 11. Associated companies G:rmany Bosch;S emens Hausgerute GmbH, Munich 5.839 i55 900 50 l
Linotype-Hell AG, Eschborn 693 4
303 33 Te.la.Vegicherung Aktiengesellschaft, Berlin and Munich 495 10 306 50 International GPT Hpl6ngs Ltd., London
- 2.497 197 920 40 7_s
/
Telsi Ltd London
- 2.514 50 kspecor Corporation, HickorgNC2' 955 62 296 50 Equitel S._A. Equipamentos_e S stemas de_Telecomunicac6es, Cur.itiba/Brapl__40_9__ _ __._'33__ _256_.___805'.
L J
66 cive-year summary S
Amounts in millions of DM, unless stated otherwise
[' Assets /f mds employed [ September 30d - 11995h-jl994[.1, [i993]j1992[,3219913 Siemens worldwide Noncurrent assets 23.057 21,448 20.922 19.833 19,389 Current assets (excl liquid assets) 34.788 33.074 32,747 31.689 31,513 Liquid assets 24.132 23.916 21,813 19.677 18,566 Nb
$ b i b b b b b b N$b)kM23 bD) nib N b Paidan capital 11,414 11.410 11.404 11,388 _ 8 883 Retained earnings and minonty interest 11.077 10.400 9.122 7,892 9,766 bM$kkh2EEEEN2ME2MNbbNNbdNANN)
Pension plan accruals
. 17.747 16.669 16.012_
1_4.76_1_ _ 13.957 Other accrued liabilities 20.471 21.202 20.322 20.680 20.137 Total accrued habihties 38.218 37.871 36.334 35.441 34,094 Debt 5.141 4.518 4.645
. __.531_ _ _ _57 5 4
4 Other habikties 16.127 14.239 13.977 11,947 12.150 hkbb I
[SE D M N E M N b nrm.b b N b 5 M b Eamitigs/ dividend /yloid.
1995; a1994? ]19931
)19921 21991j Siemens worldwide
~
Pretax income before financial results 1,146 850 1,057 2,223 Financial results 1.456 1,2_60 1.855 974_ _ _ _ _ _
Preta< income 2.602 _
2,110 2.912 3.197 3.419 Income taxes 518 461 930 1.242 1.627 Income a'ter income taxes 2.084 1.649 1.982
_1,955 _
1,7_92 Extraordinary gain net of taxes 344 bb$E.EE Zi@j]99{[MM22[IM5]
1f92]
Return on shareholders' equity 94%
94%
10 0 %
10 0% _ _ _ _ 9 9%
Total dividend of Siemens AG 728 728 728_
727 686 Dividend per share hn DM) 13 13 13 13 13 Cash flows / liquidity 1995 1994 1993^
1992
[
L Cash provided by operating activities 5.394 7.156 9.203 8,991 Cash used in investing activities t6 6931 14.287)
(5.6351 (7.591) of which capital spend 4ng (7.465)
(5.721)
(6.674n (8.574)
Cash provided by (used in) financing activities 1.557 (393)
(1.261) 375 of which' redemption of bonds (29)
(1,1831 1.088
$ ~90 ?. 3 & *.* g yk M h ? u.v ner-w g & L b g M g g w g e r- ~ y ~s Jm37-yww wyg 7m mr uw w w
wawba O
' Pnor year not made comparable
" Without temporary student workers and trainees
"* Part-time employees included on a proportionate basis
67 c(
b.- mwN 62Z,.wtlbaMedigj996Mg19944,L 9931h,992gdj99[g m.
n,.wm,
~,.u m
,. - ww gm m..
n
,n q
1 l
German business 38.049 35,100 37.830 40,174 36,746 International business 53,851 53.271 46,306 45.235 45.420
, '."l- ( 4. : l.'.:.f1.'l
- 1 :,,
i f.. [ lI
',[
')
Change over prior year
+4%
+5%
-1%
+4%
+21%
g g,J L.au k w M k a M L Qu M d n.,M g m ;y g m g ;, m d.u g :grg y rymymagg-rqpy gag k..
.- Abr a,
.., G:.....
.. wmn.. un German business 37.857 35,771 37,271 36,475 33,263 Intemational business 50,906 48.827 44,377 42,034 39.745
? !' :
...,. g r.
.. L
. (,:
Change over prior year
+5%
+4%
+4%
+8%
+16%
y M" k.,_ thousands); September 30&1995"Li1994"*A1993.jk-d,;1992 h,._19913 y,.
..m._..
~m.,.,.
L
^(.
German operations 211 218 238 253 243 International operations 162 158 153 160 159
...,7.:,
-_.c WP 'M Wq
- '[9*,,
t':y'yf.R yG[
- 'Mfv'
'g y 7
y OCapitalM g,,gb;w
~ ne mnmw wg y 2;3g g1995,3 ;g;j994my1993n,wj992Wa;;_]99,h mw.
At 2; m in Germany 3.478 2.649 2,909 5,861 3,332 Intemational 3.987 3.072 3,765 2.713 2,263 e... 3.:. c
.c.--
.m
.7
..)
c 7.
Acquisition of investments 2,021 1,188 1,881 3.014 592 Capital expenditures 5.444 4.533 4.793 5,560 5.003 Depreciation of fixed assets 4.564 4.473 4,560 4.613 4,400 as a percent of capital expenditures 84 %
99 %
95 %
83 %
88 %
[gg
, *l
--w 19957 T1994P"1993FC1992"'Vi99i'
];
), ; 7.q f.fQ:Q.g;y.) l ~ l,E.j71 7.]
- f.;,,, jg7 ' j as a percent of sales 82%
89%
9.3%
96%
10.8 %
i Siemens AG
[aslofppfymisr301.g2j9953d9943
$',"m"e" s
' N[Na'n B: lance sheet Fixed assets 56 60 unqualified audit opinion from KPMG cnd statement of income Deutsche Treuhand-Gesellschaft AG Investments 2t3 in billions of DM (condensed version)
- c... - A %;-..201 W rtschaftspr0fungsgesellschaft, j
u
'M and will be pubhshed in the German Federal Gazette and filed with the Inventones 2.1 1.0 Commercial Registries of the Berlin-Accounts receiv. a_b_le _. _ _. 21.1.~
2_0. 7 Charlottenburg and Munich District Courts.
7 Secunties. liquid assets 11.6 11.2 U,a..- ps.m,, dis v
,. A 1995 P,S 1994,I
~. -.. - +..;."4, p. f-m ~,s.g g,y.]
obtained in German free of charge These financial statements can be 1
3 n-
-4
-4 m
~
.~.s
@t_sa}es
,, _ _ _ _, _p0.[ __ 5M from Siemens AG. Infoservice Cost of sales (45.4)
(41.4)
UK/Z130, PO. Box 2348, D-90713 Shareholders, equity 20 7 20 4 Furth, Germany.
~.
.......,.n......, ~..,.,,
Accrued li6bilities and N Other functional costs (15.8)
(15.3) special reserves 29 6 29 4
'%, /,Other income / expenses Debt 08 06 16 21 1.
1-ArJ - /
Other liabilities 10 6 86 Income taxes 01 (01)
" * - 1: / '{}.ppgj
.s 4
..,..,. - ~
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i 68
'le om aans O
Managing Board l
. Heinrich v. Pierer, Dr.jur.
Karl-Hermann Baumann, Horst Langer, Dr.-Ing.
G0nter Wilhelm, Dr.-Ing.E.h.
President Dr. rer.oec, Specebesponsibditet ANL, Med, VT, Special responsibdities: AUT, EV. KWU; and Chief Executive Officer Finance Osram: Amenca Ava, Austraha Planning and Development Speciahesponsibikties: SNL UK, WPA Volker Jung, Dr. Eng. h.c.
Werner Maly Special responsibehties. HL, ON, PN, SI, VS, Human Resources l
Afnca, Mddle East. C.I.S.
Specalresponsibihties PD Walter Kunerth, Prof. Dr.-Ing.
J0rgen Radomski Producion and Logistics Specia! responsibihties: lD; Special respons;bikties: ZFE, ASL AT EC, PR Europe Groups Power Generation (KWU)
Power Transmission Industrial and Drives and Standard Products Adolf HUtti and Distribution (EV)
Building Systems (ANL)
(ASI)
Hans B6hm, Dr.-Ing.E.h.
Horst Brase Eberhard Kill Herbert H.Steffen Andreas Kley Folker W. Tannenberg, Dr.-Ing.
Hans-Wolfgang Scheler Reinhart Bubendorfer l
Klaus Voges Gerhard Wibiral Hans M.Strehle Automation (AUT)
Public Communication Private Communication Defence Electronics Manfred v. Raven Networks (ON)
Systems (PN)
Helmuth Wiesner l
Gunther Fritsch -
Peter Pribilla Dietrich Botsch, Dr.-Ing.
Benno Franzreb Karl-Heinz Samann, Dr.-Ing.
Hans-Walter Bernsau Jost Hammerschmidt, Dr. rer. pol.
Helmut von Deimling Werner Schm0cking Roland Koch Transportation Systems (VT)
Automotive Systems (AT) -
Medical Engineering (Med)
Semiconductors (HL)
Wolfram O. Martinsen Franz Wressnigg, Dr.-Ing.
Erich Reinhardt, Prot Dr.-Ing.
J0rgen Knorr Siegfried Franke Jens Banaschek, Dr-ing.
Robert V.Dumke Volkhart R Matthuus Gerhard Wahl JUrgen Mache G6tz Steinhardt Special division l
Passive Components Electromechanical and Electron Tubes (PR)
Components (EC)
Network Systems (VS)
Klaus Zegler Manfred Kasserra, Dr.rer. pol.
t l
Bodo LUttge, Dr.oec.publ.
Helmut Brauneis Ludwig Hoffmann, Dr.-Ing' Separate legal units I
Siemens Nixdorf Osram GmbH Informationssysteme AG (SNI)
Wolf-DieterBopst Dr.oec.publ.
Gerhard Schulmeyer Heinz-Peter Mohr Alfred Nowosad Jorg Schaefer, Dr.-Ing.
Peter Pag 6, Dr.-Ing.
O Regional organization Regional offices, intemational Siemens companies, sales companies, representative offices, agencies
m
\\ lv u,0 I' ' / [ O.0, O */
IO' L
L.
i
.~
b;4
[){
l i
Hermann Franz, Dr.-Ing.E.h.
Detlef Kreyenberg Munich Munich ans Gunter Danielmeyer, Wolfram O.Martinsen "U
of. Dr. rer.nat.
VT Alfons Graf Heinz Kriwet, Dr. rer. pol.
Swch and Deveopment Peter Pribilla Munich Dusseldorf dolf HUtti ON Deputy Chairman Chairman of the VU Master Toolmakes Management Board.
I ierhard Kill yssen AG. Dusseldorf a
Wolfgang Schieren. Dr.jur.
Munich Georg Nassauer irgen Knorr Erwin Hardt. Dr.oec.publ-Deputy Chairman Berlin 3
(untd September 30.199W Chairman of the Supervisory Board.
Steel Casting Constructor Alkanz Aktiengesellschati Holding.
Munich orpor:te departments Corporate offices Werner Neugebauer Munich ninc3 (ZF)
Corporate Communications och Cartellien. Dr.j.u r.
neg,onal Manager for Munich, al-Hermann Baumann. Dr. rer. ooc.
(UK) h"[n in IG Metail r of arhard Kluth. Dr rer. pol.
Eberhaw /osner. Dr rer.oec.
Board of Management.
Karl-Heinz Nolden irl Heinz Midunsky Deutsche Bank AG.
tier Niehaus Frankf urt on Main
,jtyh tember 30.1995) 3 brecht Schafer. Dr jur.
Economics and Corporate Machine. Tool Fitter iomas Seeberg. Dr.rer. pol.
Relations (WPA)
Roger Fauroux Bernd Stecher Dr sc.po!.
Pans Wolfgang R6lter, Dr. rer. pol.
Honorary President.
er n.
nd Development Saint-Gobain 5 A, Pans f
jM J
Corporate services Chas Supervisory Board.
Dresdner Bank AG.
m iter Danielmeyer.
Birgit Grube Frankfurt on Ma.n of Dr.rer.nat.
Infrastructure Services (ID)
Munich 3rst Fischer, Dr rer.nat.
Dieter Bnese Othee Clerk Albrecht Schtnidt, Dr.jur.
aus Weynch, Prot Dr phil.
Munich Bettina Haller Spokesman for the Berkn Managing Directors.
Personnel Services (PD) las of October 1.19951 Bayensche Vereinsbank AG.
umin RIsources (ZP)
Karl Meister, Dr. rer pol.
erner Malv Jnther G Goth Heinz Hawreliuk Nikolaus Senn, Dr. iur.
' aller Schusser, Dr.rer pol.
Rankfo t on Main Zunch r
Head of the Company Chairman of the Cooetermination Department.
Board of Administranon.
IG Metall Union Bank of Sw'tzerland.
Zunch Ralf Heckmann
-oductirn and Logistics (ZPL)
Municn Peter von Siemens alter Kunerth, Prof Dr,Ing Teiecommunicatons instalier Munich uno Freund nst Wilhelm Muller Herrnann J. Strenger Levertusen Chairman of the Superveory Board.
Bayer AG. Leverkusen Horst Wagner cnning end Development Berkn
.gg
% gena! Manage for
~
6erun. BranoenDurg, unnch v Pierer. Dr.jur.
IG Metati inslorg Franzius, Dr.-Ing luntd June 30.19951 ichaet Mirow. Dr. rer. pol.
nch Ziemann. Dr.rer pol.
Erwin Zahl Nuremberg Telecommunicadons instaher
%w.)
as of December 1.1995 as ol December 1.1995
mSinC! your a-9;V G
m.,,
This year you can again enjoy a multimedia version of our
~
stEMENS
~
Annual Report. The enclosed CD-ROM, a hybrid version installable under Windows or MacOS, contains video clips-Gescg*gtsbencht'95 bilingual texts and narration.'
The text and graphics files on gp,jglRep0d.95 the CD can be used in other applications. In Windows, simply use File Manager to copy the files you require A
from the data directory to 4
~~
k your hard disk and load them into Word 6.0 or Excel 5.0.
/
F System requirements:
256 of r (8 bits) with 640 x 480 pixels Higher color density
,q/
(thousands of colors or 16 bits) will optimize repre-sentation of the video sequences, while lower color density (16 colors) will distort the colors.
e semens 4G a,995 Drive:
Double speed or higher Sound:
8-or 16-bit sound card
--mr
- +-
For Windows:
Computer: 486 or higher installation for Windows:
Starting the CD-ROM at least 33 MHz
- 1. Insert the CD-ROM in Start the CD-ROM with a Free working memory-your CD-ROM drive.
double click on the "Siemens at least 4 MB
- 2. Start the Windows File Annual Report '95" symbol.
Manager.
You will find this symbol e et b e W W unWndows s de at east 2 MB drive's Main Directory by program group window chebng the CD-ROM "Siemens AG."
For MacOS:
Version 7.x,5 MB free
- 4. Sta the i allation working memory or more with a double click on
" install.exe".
- 5. Follow the installation program instructions.
.?
)
- 1;
~b; Y
,y...
H:ns GGnter Danielmeyer,.
' Wolfram O.Martinsen
. Prof.Dr.r:r.nat..
- vt ResearM De@nt.
Peter Pribilla Adolf Hutt! '
oN KWU-
- Eberhard Kill
- ANL JGrgen Knorr Erwin Hardt, Dr.oec.publ.
t HL,.-
. Junta September 30,1995)
Corporate' departments.
Corporate offices Finance (ZF) :
Corporate Communications KarFHermann Baumann, Dr.rer.oec, (UK)
Gerhard Kluth, Dr.rer. pol.
Eberhard Posner, Dr. rer.oec.
Karl Heinz Midunsky.
Pet;r Niehaus..
. Albrecht Schifer, Dr.jur.
Economics and Corporate Thomas Seeberg, Dr, rer. pol.
Relations (WPA).
Bernd Stecher, Dr.sc. pol.
and Development
- (
Corporate services -
Han er Danielmeyer, Prof. Dr. rer. nat.
Infrastructure Services (10).
Horst Fischer, Dr.rer.nat. '.
Dieter Briese
. Claus Weyrich, Prot Dr.phil. -
Persennel Services (PD)
Wemer Maly Ka,1 Meister, Dr. rer. pol.
G0 nth:r G. Goth '
Walter Schusser, Dr. rer. pul.
Production and Logistics (ZPL)
Walt r Kunerth, Prot Dr.-Ing.
Bruno Frrund -
ErnstWilhelm Muller
- Planning and Development (ZU) '
Heinrich v. Pierer, Dr.jur. :
Hansj6rg Franzius, Dr,-Ing1
, Micheet Mirow, Dr.rer. pol. -
' Utnch Ziemann Dr.rer. pol.
N, 4
89 Of Decernber 1,1995 '
l c-e l
l 1
i
Siem:ns financial di;ry for 1996 interim report for first quarter h
%[%ngdji f Annual Shaseholders' Meeting '
Munich, Olympiehalle,10:00 a.m.
WNi-Ewdividend date -
79 I l Mlli ~
Interim report for six months'
($ li l M9 Summer Press Conference and l$ g lipfM(-
gl.
h
- interim report for nine months -
M,Rh3
Preliminary figures for fiscal year lTfjlWii Balance Sheet Press Conference
[$ [MM O
Address:
Siemens AG Wittelsbacherplatz 2 D 80333 Munich Federal Republic of Germany Telephone (089) 234-2812 2 34-24 74 Fax (089) 2 34-.2825 234-2830 Telex 52100-0 sie d T-Online
- 32000 #
Internet http1/www.siemens de Order No. A19100-F-A558 X-7600 This Annual Report is also available in French, German and Spanish.
Abbreviated versions have been prepared in Chinese, Czech, Japanese, Polish y
and Russian.
.u
~.. _ _. -. _. _ -...
NintsKl ott [VIJMH litMl#Ki With Chforme free t@ach
_,