ML20213E160
| ML20213E160 | |
| Person / Time | |
|---|---|
| Site: | Framatome ANP Richland |
| Issue date: | 12/31/1985 |
| From: | Kaske K SIEMENS CORP. |
| To: | |
| Shared Package | |
| ML20213E143 | List: |
| References | |
| NUDOCS 8611130035 | |
| Download: ML20213E160 (67) | |
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Sism2ns at a glance Position. Ranked by sales and number of employees, Siemens is one of the six largest companies in the worldwide electrical and electronics industry.
Corporate policy.The main goals of Siemens' strategy are e to offer customers special advantages through superior technology, e to hold a leadership position among the competition, e to secure a good income and to offer its employees challenging jobs.
11983/84j194/85] Ch*"S*i Siemens*
pe cen 48,124.f 9%S94]
+ 8 Orders received i
Sales 45,819 [e 5%$48
+ 19 f
Employees (at September 30)" L 328,000 { 34M0]
+ 6 Employment cost 18,728 h W]
+9 0
+ 72 Capital expenditures and 2,410 h j4,1 51 invastments Research and development 3,803' 4 4,FM
+ 26 Amounts in millions of German marks unless income after taxes' *
'1,086 h 1M
+ 43 1
Si: mens includes Siemens AG and
,3.S}4 domestic and foreign companies in which Siimens AG is directly or indirectly in per Cent of sales
- 2.3 :
l i
gntitled to cast a majonty of the votes and 4
which are included in the consolidated in per cent of 1
9*5 13.3 shareholders' equity i
t,n;nci,i,1,to m ont,.
As of 1984, this figure includes part-time Totaldividend of Siemens AG 442 y,
i573 )
+ 30 smployees.
N1t income for the year
[n"[c*on'Ie$en'ce"of*"$UsI*$Ed[9reners.
Dividend per share in DM 10 12 1
+ 20 d
~)
plus a tax credit for is c trinstation of the German original. French dumestic shareholders of DM 5.63 6.75 4, tnd Sp:nish versions are also available.
Tcblo of contents Report on the fiscal year October 1,1984 to September 30,1985 M:rket. The Company is geared to the world 7,,,,,,,,,,,,,,,,
2 market; it does about 50% of its business with customers abroad.
supervisory so.rd 4
Report of the Supervisory Bo.rd 5
innovation. Siemens is one of the major innova-R. port of the u.n.ging so.rd tors in the industry. Approximately 9% of sales-Genera! review 6
DM 4.8 billion in 1984/85-was spent on research corpoiate structure is and development.
Components Group 14 Pr: duct spectrum. Siemens works almost
[**;Eng nee "
og up 16 exclusively in the field of electronic and electn, cal capital goods and offers the widest spectrum Electricat installations Group 20 of products in this sector.
communication end Information Systems Group 22 St:bility. The Company's extensive range of Medical Engineering Group 26 products and broad geographic sales spread Teiecommunication networks and makes for a sound balance of economic risks.
Security Systems Group 28 Research and developmer.!
32 Ecrnings. Siemens has demonstrated steady comestic siemens companies 34 earning power over many years and has created a strong financial base.
siemens companies abroad as Major associated companies 42 Sh reholders. The income and price trend of the List of siemens companies and Siemens share, as well as the Company's stability
- i ' "$5 i '* d '
- P "'*
- 44 and future prospects, have caused the number Financiai statements and notes 47 of shareholders to rise to over 400,000.
Managing Board 60 Future. Forecasts for growth in the markets where Siemens is active range from 6% to 7 o/o The Siemens share 62 per year in real terras. The Company intends to
'*"'Y*"***'
exceed this rate, as it has in the past.
- To our shareholders 4
)
j sures taken during the past few years to struction activity. Despite poor condi-improve productivity were the major fac-tions in the market for integrated cir-3 tors in the continued growth of net in-cuits, we have systematically pursued yn come, which totaled DM 1.5 (previous our efforts in this field, as a strong posi-
~
year 1.1) billion (see graph on opposite tion in microelectronics is essential to j
page).The net profit margin of 2.8%
ensure the international competitiveness (previous year 2.30/0) has returned to of the electronic products and systems l
i the level of former years. We can there-manufactured by our Groups. We expect i
fore recommend the Annual Meeting of a continuing brisk demand, especially for i
Shareholders to increase the dividend to our products and systems in the field of DM 12 (previous year DM 10). DM 0.9 office and factory automation.
l (previous year 0.6) billion has been In 1985/86, unlike the year under added to consolidated retained earnings. review, there will be no final billings for The fine result for the year encour-large-scale power plant projects. Thus, aged us to devote particular energy to although most Groups will again record i
the pursuit of measures that are neces-good growth rates, total sales will come Fiscal 1984/85 was a good year. Sales sary to ensure our position over the long down to approximately DM 50 billion.
rose substantially, we created additional term. We again made a sharp increase in We intend to increase capital expen-job opportunities, and we were able to capital expenditures, which reached DM ditures yet again, to about DM 6 billion.
increase net income still further.
4.2 billion (see graph on opposite page).
In addition, there will be further start-up Sales rose by 190/o to DM 54.6 billion.
New products in the most sophisticated costs for market development and struc-This was due in part to the final billing technologies of ten require totally new tural improvements in strategically im-of three nuclear power plants, but even manufacturing processes, which, in turn, portant areas,in order to strengthen fur-without the power plant business the can only be carried out in expensive ther our position in the world market.
growth rate amounted to 130/o. The ex-facilities constructed especially for that pansion was spurred by the economic purpose. The talent and dedication of recovery in Europe. We were particularly our employees will be fully effective only Sincerely, successful with our equipment and if we equip them with the best " tools '
systems for improving productivity in in key areas, we already have state-of-offices and factories.
the-art manufacturing plants.
Orders received reached DM 518 bil-As a further measure to ensure the lion, an increase of 80/o. The growth rate future of the Company, we increased was affected by the small number of the number of employees working in Dr. Karlheinz Kaske power plant contracts signed during the research and development by 3.000 to fiscal year Without the power plant busi-36.000 and the expenditures to DM 4.8 ness, we booked 110/o more orders, (previous year 3.8) billion. This puts especially from abroad.
Siemens in first place in Europe in terms The pronounced upturn in our busi-of innovative potential.
i ness permitted us to hire 20.000 new employees, bringing the total work force Outlook to 348.000. We are glad to have been Positive trends should continue to able to make this contribution to higher prevailin most of our markets during the employment, current fiscal year. Business in electrical The vigorous sales expansion, im-installations. however, will remain diffi-proved capacity utilization. Pqd the mea-cult because of its dependence on con-2
Orders received (in biiiions of ou)
Sales (in biiiions of ou) 80 80 80 80 70 70 70 70 60 60 60 60 53 50 50 50 40 40 40 40 30 30 30 30 20 20 20 20 10 10 10 10 oomestic business comestic business 0
0 0
0 0 R k R R 8 5 2 2 E E R R k @ R 8 E 2 2 E 8 4 a a a a a a : a 2'
4 4 a a ~ a a a : a de4 s s s s s
s e e m m
s s s s s s e e e Capital spending (in mimons of ou)
Net income (in mimons of ou) 4,800 4,800 2,000 2,000 4,200 4,200 1,750 1,750 3,600 3,600 1,500 1,500 3,0C0 3,000 1,250 1,250 2,400 2,400 1,000 1,000 1,8C3 1,800 750 750 1,200 1,200 500 500 600 600 250 250 0
0 0
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Supcrvisory Becrd Ernst von Siemens, Bernhard Plettner, Dr.-Ing. E.h.,
Wilhelm Polakowski, Berlin Dr.-Ing. E. h.,
Munich
^""*'u*'a*'
chaeman Munich Franz Rehm, Munich Ferdinand Turek, Munich Nec*on unnan.c Hermann von Siemens, oeputy Charman Dr. phil., Dr.-Ing. E h.,
rechnician Albert Schengber, Frankfurt Munich Employee. iG Metan Wilfried Guth Dr.rer. pol., Frankfurt tu new a no supewwy B=d unte uarch si. ises:
Petsr von Siemens, ooputy cha eman Dr. rer. pol.,
[,*,C,"*,$'*, ",,', Bwd.
Wolfgang Schieren, Dr.jur., Munich Present of the Board of Management.
Munich Alhana Akteengeselischaft Hokling. Munich Werner Frischholz, Hamburg trade section secretary and o,ws.on Head.
Eduard Schleinkofer, Mun h ic Cour,cil of Honorary Chairmen oro goe, man Union of Salared Employees) negionai uanage for Bavana.
IG Meta #
Herbert Gr0newald, Prof.Dr.rer.nat.,
Leverkusen Alexander von Seidel, D0sseldorf Chairman of the superwsory Board.
Bayer AG. Leverkusen Ruppert Siemon, D0sseldorf Enocubwe onector of the Board of Management.
Maximilian Hackl. Dr.jur., Mun. h oeutsche scnutivere.nw ic u.meer o tne Board ce Management.
eur wortpap,ereesiis e v. ousseidort Bayonache Vereinstank AG. Munich (deceased May it.1985)
Helmut Haeusgen, Frankfurt Dieter Spethmann, Dr.jur., D0sseldorf Chairman of the superwoory Board.
Charman of the Management Board.
oresdner Bank AG. Frankfurt Thyssen AG worm August Thyssen-Hutte. ousseldorf Heinz Hawrehuk, Frankfurt Fritz Steinke, Karlsruhe secretary of 10 Metan Headquetes instrument scwe oe gner (Member of the superwsory Board as of Aped 1,196%
l Dietrich Ummelmann, Erlangen l
Wolfgang Keim, Munich 3,, y oips -ing Reimar L0st, Prof.Dr.rer.nat., Paris orector oeners European space Agency iu.rnew ce the supervisory Bond as et uay 12.1989 Rudolf Mooshammer, Munich Mechan,e Egon Overbeck, Dr.rer. pot.,
D0sseldorf Member of the superwsory Board Mannesmann AG ousseldort r
4
. _. _ _ _ _. ~
Rcport of the Supervisory Board g'
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] T'1 l We have also examined the records had been heading International Opera-l ourselves and the conclusive findings of tions until his move to the Electrical i>'
N our examination reveal no grounds for Installations Group in April 1985, was 5
i]j j objection. In view of our approval, the appointed head of the ElectricalInstalla-Sg financial statements are definitively tions Group.
I-confirmed.
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We have endorsed the proposal of Berlin and Munich, January 29,1986 the Managing Board that the net income For the Supervisory Board
+
available for distribution be used to pay an increased dividend of DM 12 on each
'f 4
share of the capital stock of DM 2.4 billion entitled to the dividend, as well as the proposal that the amount attnb-Dr. Bernhard Plettner utable to treasury stock be carried Chairman forward.
We supervised the management of On March 31,1985, Albert Schengber the Company's aff airs during the past the representative of IG Metall, with-fiscal year on the basis of the written and drew from the Supervisory Board upon oral reports of the Managing Board.
reaching retirement age. We took that occasion to thank him for his cooperation At our four regular meetings, we on the Supervisory Board. He has been discussed the business and financial succeeded by Heinz Hawreliuk.
situation of the Company, as well as its sizable capital investment program.
Ruppert Siemon. Attorney-at-Law,who had served on our Supervisory Board for Dunng the year under review, the twelve years, died on May 11,1985. Our Company's order volume and capacity Company has lost a valuable adviser in utilization continued to improve. Addi-Mr. Siemon. His successor on the tional employees were hired; at the Supervisory Board is Professor Reimar same time both capital investments and Lust, Dr. rer. nat., who had previously research and development expenditures been elected an alternate member at the for new technologies were increased.
Annual Meeting of Shareholders on March 24,1983.
We are satisfied that the Company's accounting records, the financial state-Dr. Dieter von Sanden, who had been ments of Siemens AG and the consoll-with the Company for 34 years and on dated financial statements as of Septem-the Managing Board for 15, died unex-ber 30,1985, and the annual report have pectedly on July 10,1985. We owe im-been audited and approved without qual-portant advances in the field of telecom-ification by Deutsche Treuhand Gesell-munications to his work. On September schaf t AG Wirf schaf tsprufungsgesell-30,1985. Dr. Theodor Baumann retired.
schaft, Berlin and Frankfurt. We concur We thanked him for 36 years of service in the results of the audit.
with the Compa1y Hermann Franz. who 5
I
- Report of the Managing Board l General review 1
l l
l Soaring sales business continued to suffer from weak-ternational business, which was up The fiscal year was marked by a con-ness in the construction industry, all the nearly one-third over the previous year, tinued improvement in the business Groups reported substantial growth Our EWSD digital switching system, i
climate, which was even more pro-rates. The leaders were the Communica-which has now been selected by 37 tele-i nounced than we had anticipated. The tion and Information Systems Group and communications administrations in 21 upward trend, spurred initially by new the Telecommunication Networks and countries, accounted for a major share technologies, also had a strong effect on Secunty Systems Group, each with a of the growth. Medical Engineering conventionallines of activity, as capital sales increase of 190/o. The strongest maintained the rapid tempo of expansion investment revived The resulting growth growth thrust in Communication and in-achieved in recent years. This Group has l
extended to almost every sector of the formation Systems again came from the succeeded in doubling its sales within j
Company. Our business again expanded Data Systems Division and the Commu-the past five years. Components scored l
l at a somewhat higher rate than the nication Terminals Division. The sales in-a gain of 100!o. The sales figure does not worldwide electrical and electronics mar-crease in Telecommunication Networks yet fully refle:t the slowdown in this mar-ket.
and Secunty Systems was attnbutable ket. Af ter two comparatively weak years.
l Total sales increased by DM 8.8 billion pnmanly to a vigorous expansion in in-our largest Group, Power Engineering i
to DM 54 6 billion, a gain of 190/o. This
-i 1
l was the highest growth rate recorded during the past eight years. The power 7; %
g l
plant business played a decisive part in this soanng sales increase, due in par-i ticular to the final billing of three nuclear f
power plants built in the Federal Repub-lic of Germany. c'onsequently, for the i
first time in ten ymrs, our domestic
)
sales, at DM 29.1 oillion, were higher jg l
/
than international sales of DM 25.S
/
]
7 l
billion.
j But even without the power plant bust-i ness, our sales rose by 130/o, with ap-j I
proximately the sa ne rate of increase at
(
/
i home and abroad.
/
The growth dynamic encompassed virtually the entire Company. With the ex-6,,9, s
i ception of Electrical Installations, where 9,
Y
./
Q ;f R,.h Y.
The finalbilling of three nuclearpower t>
f I
e plants enabled KWU to make an un.
usuallylarge contribution to the sales growth of the Company as a whole. We f>
1i show here the sealing of the pressure vesselfor the reactor at the Philipps.
l f
burg 2 nuclear powerplant. II.
fl' y,,
l f,362-Af W outpu t further increases the j
y.,
'f:
Q proportion of thepower supplyin Ger-
,/ _ '
s
'/
many derived from nuclear energy.
6
General review and Automation, entered a new growth Sales by business segment ness. The overall order backlog in the phise, posting an 80/o increase in sales.
Other Jectors rose slightly, totaling The automation business showed a par.
DM 54 6 b.ition - 100%
almost DM 29 billion. The average reach, ticularly dynamic trend; we continued to 4% Components however, still varies greatly from sector x
cxpand our strong market position. De-22% Power Engineering to sector, spit) the deep recession in the building and Automation As orders rose, capacity utilization industry and keener international
' 6% Electricallnstallations continued to improve, with a consequ1nt competition, sales of the Electrical 15% communication and gain in employment. Average plant utili-Instulations Group held steady. Due Inf rm en systems zation rose from 810/o to 860/o.
to final billings, power plant revenues 8% MedicalEngineenng climbed by about 500/o (see page 6).
16% Telecommunication Cap /talspend/ng S11:s growth accelerated in the lamp se u ity sysfems v/ 0rou8/F82Panded 9
business, based on many new products 23% Power plant High capacity utilization was among end hi h international volume. Dr.-Ing business the reasons for planning numerous g
Rudolf Hell GmbH continued to expand
/ 3% Lamp business additions to our plants and substantially at the rapid pace established in the pre-3% Other increasing capital outlays. Total capital c: ding years. Business at Transforma-1984/85 expenditures and investments came to tor:n Union AG (TU) was stabilized at a DM 4.2 (previous year 2.4) billion - over low r level.
A 700/o more than in the previous year, and S/emens has more than doubled /ts more than twice as much as two years Br/sk in//ux of orders wor /dw/de sales over the last eight ago. We spent DM 3.7 (previous year N:w products and systems, combined yests, Almost a// sectors sharedin the 2 2) billion for property, plant, and equip-with a healthier investment climate at Company's dynam/c growth durlag ment and DM 0.5 (previous year 0.2) bil-home and abroad, laid the foundation for 1984/85, In 1985/88, however, there wi// lion to acquire shares in subsidianes and a further increase in orders. Overall, we be a sharp dec//ne /n the percentage o/ associated companies. Two thirds of the-booked a total of DM 518 billion, or 80/o sales attr/butablo to the powerplant capital outlays, or DM 2.8 (previous year more than in the previous year. As a bus / ness, wh/ch was swe//ed by //nal 1.4) bilkon, were channeled to projects result of the lullin the power plant bust b////r'gs /n the year under rev/ew-in Germany, the remaining one-third n:ss, domestic orders rose by only 20/o, or DM 1.4 bilhon (compared with OM 1.0 to DM 23 9 billion; however, without the shewed a pronounced increase, and the billion the previous year) was spent pow:r plant business, they were up 80/o inflow from Asia and Austraka, after a pe-abroad.
ov r the previous year. Our customers nod of stagnation, also improved signifi-The main thrust of our capitalinvest-cbroad were especially active, boosting c wt'y Only in the Afncan countnes did ments was aimed at such vital growth th ir order,olume by 130/o. Totalinter-demand continue to dochne Business secicrs as factory automation, office national orders came to DM 27.9 bilhon, with the Eastern Bloc countnes was technology, and pubhc communication A large proportion of this business highly satisfactory. There was a signifi-networks, as well as microelectronics as cima from Europe. We received 150/o cant gain in orders from the People's a basic technology. These activities more orders than in 19M/84 from our Repubhc of China.
claimed almost 500/o of the entire European customers outside the Federal Because of the sales increase pro-amount invested, whereas two years ago R:pubhc of Germany. The growth rate duced by final bilkngs at Kraf twerk Union they accounted for just one quarter of a on the U.S. market, at 120/o, was also AG (KWU), total sales exceeded total totalless than half as large.
high, though this was partially due to the orders received, and orders on hand Top pnonty at home and abroad was stronger dollar Orders from Central and dropped to DM 54 billion from the previ-given to investments in new produr ts, South Amencan countries, which had ous year's DM 59 bilhon. The reduction followed by measures to increase pro-dwindled dunng the past two years, was confined solely to power plant buss-ductivity For the first time in several 7
General review Capital ep:nding by businsss s:gmsnt DM 4 2 billion = 100%
16% Components
/19% Power Engineenng i
l and Automation 4% ElectricalInstallations 24% Communication and Information Systems 9% MedicalEngineenng 13% Telecommunication Networks and Security Systems
/ 5% Power plant i
/ business
/ 3% Lamp business 7% Other years, substantial sums were spent to All our Groups, as well as all the major by DM 1.9 billion to DM 9.6 billion and expand our facilities.
domestic Siemens companies, recorded now make up 180/o (previous year 160/0) j Measured against sales, the biggest a profit. Transformatoren Union AG of total assets. On the other hand, due outlay was by the Components Group, alone continued to operate in the red.
mainly to KWU's invoicing of three nu.
but the capitalinvestment ratio for Com-but succeeded in reducing its deficit by clear power plants, inventories dropped munication and Information Systems was 500/o, compared with the previous year.
by DM 2.1 billion to DM 17.8 billion.
also well above average.
International earnings declined. This Although liquid funds and investments in From a geographical point of view, was due to a loss at Siemens-Allis, Inc.,
marketable securities continued to grow, our capital investment was concentrated mainly as the result of a restructunng reaching DM 20.5 billion, the increase of largely in the Federal Republic of Ger-program. The overall net income of the DM 1.1 billion was considerably less than a
j many and the United States. In the other local Siemens companies in-in the past three years. It was also pro-j U S A, we increased our holdings in Tel-creased (see page 40).
portionately less than the growth in total Plus Communications, Inc. and acquired Higher net interest income had a fa-assets, with a resulting decline in the Pacesetter Systems, Inc., a leading man-vorable effect on earnings.
liquidity ratio.
ufacturer of cardiac pacemakers. Owing DM 1.6 billion was added to share-4 l
mainly to these acquisitions, capital Balance sheet reflects holders' equity by transfers from net spending in the U.S.A. was higher than high capital outlays income and capital increases. However, I
in all the other foreign countries put As capital investments significantly the ratio of equity to total funds em-together. As announced in last year's exceeded depreciation, property, plant, ployed remained unchanged at 250/o.
l Annual Report. we divested ourselves of and equipment showed a strong gain of Due to extensive additions to property, l
our holdings in the Polygram companies.
DM 1.5 billion, for a total of DM 8.0 bil-plant, and equipment, shareholders' with the exception of a 100/o interest in lion. Fixed assets and investments rose equity now exceeds fixed assets and in-Polygram B.V., Baarn. Netherlands.
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Strong gain in earnings r-f
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Vigorous business growth, improved
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capacity utilization, and steady advances
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crease in earnings. Net income for the
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year rose by DM O.4 billion to DM 1.5 h.,,,
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billion. The not profit margin climbed to 2 80 o (previous year 2 30/0), and the
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(previous year 9 50/0).
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Customercounseling enjoyspriorityin p G l
l out worldwide distribution activities.
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Together with our clients, we work out I
the solution best suited to each spe.
4 cific project. The picture shows experts from the People's Republic of China l
receiving information about the new l
4 applications of microprocessor-based l
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con trol and protection for s witchgear in power distribution sys tems.
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<1 sVe stepped up ourinvestment activity, qQ g
concentrating on major growth sectors l
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- factory automation, office technol-ogy, pubhc communication networks, and microelectronics as a basic tech-nology. The airin facilities used for the
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ture width of.'e os than t.ne-thousandth i
of a millimetermust meet extremely l
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high standards ofpurity. The picture l
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vestments by 390/o, down from 520/0 the projects business, which is on the in.
(previous year DM 442.080.250). We previous year. DM 3.4 (previous year 3.3) crease throughout the world propose to the Annual Meeting of Share-billion was added to provisions, including holders to be held on March 20,1986 DM 1.0 billion to the provision for pen-Proposal for allocation of net income that this amount be used to pay a i
sion plans and DM 2.4 billion to other available for distribution dividend of DM 12 on each share with a i
i provisions, mainly as a further precau-Siemens AG's net income available for DM 50 par value of the capital stock of tion against the risks encountered in our distnbution amounts to DM 572.815.764 DM 2.387 (previous year 2.210) billion I
entitled to the dividend, and that the am unt unbutable t tre sury stock be Net income in per cent carried forward.
12 12 I
11 11 l
10 10 r
9 9
i 8
8 of sharehokters' equity j
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General review 4
i Worldwide consolidated financial statements (condensed version)
Balance sheet Statement of income (in milhons of DM)
(in millions of DM)
Assets W30/1965 9/30/1984 Shareholders' equity 9:30/1985 9/30/1984 1984/85 1983/84 and liabilities Property, plant, and Capital stock Net sales 54,616 45,819 cquipment 8.019 6.532 of Siemens AG 2 387 2.210 Additions I + 3 702) [ + 2.227]
Depreciation /
General reserves 10.197 8.790 Change in inventories ritir:ments
[- 2 215] [ - 1,841)
Additional
+ company-produced investm:nt in shares paid in capital additions to plant c nd othIr secunties 1.141 805 from rights issues (1.017)
[ 877] and equipment
- 971 1,979 Additions
[& 448) [+
183]
from other WntIdowns/
stock issues
[2.574)
[2,195) Total operating div;stments
(-
112) [-
56)
Retained earnings
[6 606)
[5,718] performance 53,645 47,798 tmns 24 23 Minonty interests 683 649 Adjustment resulting from consolidation 38G 284 Shareholders' equity 13.267 11,649 Employment cost 20.426 18.728 Cost of materials 20,728 19.219 Fixed assets and Depreciation 2.110 1,727 investments 9,570 7,644 Special reserves 195 237 Taxes 2.275 1,545 Equipment leased Provision for including income to customers 1.014 1.027 pension plans 8 792 7,745 taxes
[1,928)
[1.256]
Other provisions 14 192 11.776 Other expenses inv:ntories 17,763 19.857 net of non-operating including cost of Provisions income 6.578 5.513 unbill d contracts
( 8386) [ 11,754] 6nct specialreserves 23,179 19,758 Less -advances Total expenses not of from customers
- 11 (EG - 14.001 non-operating income 52,117 46,732 6L9/
5.856 Borrowings 3 269 3,267 according to Net income 1328 1.066 RIctiv:bles and actual matunty:
1 additional assets 14 320 13,194 fong-term (1 'kXil
[1.3651 Dalance brought forward medium-term
[ 9941
[ 919]
Markit:ble secunties short-term
! M91
[ 983) Transfer to retained and loin notes 19 324 18,196 Additionalliabihties 11 853 12,091 earnings 929 608 Minonty interests Liquid funds 1.216 1.290 Llobilities 15.122 15,358 in net income 26 17 Unsppropriated not Unsppropriated not Current assets 42,571 39,563 income consolidated 573 442 Income consolidated 573 442 52.141 47,207 52.141 47,207 10
Employees by geogr:phic trea 348,000
- 100 %
\\ 2% Africa 4% Asia and Australia 5% Latin America 5% North America 15% Europe without Federal Republic i
of Germany 69% FederalRe-puolic of Germany including Berlin (West) 20,000 more employees throughout the world September 30,1985 The higher order inflow increased ca-review, a tctal of 4,600 (previous year we have therefore instituted a combined pacity utilization at our plants and made 2,600) graduates from universities and course in the metalworking and electri-it possible once again to hire additional institutes of technology joined the Com-cal trades. This gives employees a dual employees. A primary concern of our pany. Due in particular to the interesting qualification, enabling them to operate personnel policy was training and con-jobs that we offer and our close cooper-complex systems,like those used in tinuing education for the more demand-ation with the universities, we have suc-automated plants - an activity that will ing jobs created by technological ceeded in securing for Siemens an ex-be increasingly important in the years
- change, ceptionally high proportion of engineers ahead.
On September 30,1985, we emp'oyed with outstanding qualifications. At the 348.000 people throughout the world, end of the fiscal year,34,200 (previous DAf 242million for training 20,000, or 6%, more than at the end of year 30,700) of our employees held in the autumn of 1985,5,170 (previous the previous fiscal year. The work force degrees from universities and institutes year 5.010) young people began their rose by 7% to 240,000 in Germany and of technology.
training with the Company,30/o more by 4 m to 108,000 abroad. These figures than in 1984. 3,070 (previous year 2,950) i include 14,000 part-time employees. The Sk/IIed workers are preparing for a manufacturing ca-staff of both the Communication and in-WIth a dualqualification reer,640 (previous year 610) fo-a com-formation Systems Group and the Medi-it is to the advantage of both the Com-mercial career, and 290 (previous year cal Engineering Group was increased pany and our skilled workers if the latter 300) for a technical one. We are training by 11%, that of the Components Group acquire the broadest possible range of 1,170 (previous year 1,150) young peo-by almost 100/0, and that of the Power expertise, so that they can hold more pie in cooperative programs for other Engineering and Automation Group by responsible, more interesting, and more companies, for employment offices, and over 8 0/o.
highly paid jobs. At selected locations, for Vocational Advancement Services. In
~$
},
l 4,600 Universitygraduates hired in view of the vigorous expansion of j-
);
r
{
our research and development a ;fivities
- Q _ ; \\ \\,
and the commencement of a senos of k
development projects, mainly in the
- A fields of components, office and commu-nication technology, and factory auto-mation, we added a large number of I
engineers, computer experts, and scien-
{
g tists to the work force. In the year under V
If we are to play an active role in t>
shaping the technology of the future I
at dput it to optimum uso, we must 1
provide an Information campaign that 1
extends beyond the Companyitself.
h A t our " Youth and Chips "presenta tions, l
visitors of all ages are fascinated by t
the profesalonal and educational appII-4
]
cations of microelectronics and com-
'p i
puters, as demonstrated by our ap-
. E'!th
+
prentices andyounger employees.
11
. ~
General review l
th) y!'r under review we spent DM 242 replaced with new ones.The modern flex /ble work /ng hours (prIvious year 229) million to provide technologies increasingly being used in Since Apnl 1,1985, a new collective tr:Jning for young people in 50 different factories and offices require employees bargaining agreement has been in force occupitions.
with higher qualifications. We also see in the German metalworking industry. In possibilities for upgrading the practical addition to a 20/o wage increase and a DM 100 m////on more skills of job-trained employees. Even shorter workweek, it provides for flexible for cont /nuing education now,9,400 such employees, including working hours within specified limits.
Th3 rapid pace of innovation and the 600 women, are performing highly skilled During the year under review, we signed ongoing developrnent of our products tasks in the production sector, 113 local contracts, incorporating var-and systems require intensified continu-ious plans for making the time spent on ing Education for our employees. During Trs/n/ng for employees and customers the job shorter and more flexible. Differ-the fiscal year,we spent a total of DM Numorous continuing education pro-entiated work schedules and plant utili-352 (pr;vious year 255) million for more grams at the 18 Siemens product-orient-zation that is not dependent on specific i ' thin 9.000 (previous year 7,500) continu-ed schools are open to our customers working hours are more responsive to ing Education sessions at Siemens AG as well. At our schools for data systems, the needs of the individual plant and the tions. The program is staffed by 500 microelectronics, and automation, interests of the employees than a rigid t::ching professionals and 3,000 part-Siemens employees are learnir'g, side by system.
tima instructors. Like the content of our side with customer personnel, how to b: sic trtining courses, the continuing apply and operate our new equipment.
Upsurge In cducation curriculum must be adapted We regard this training as an essential employee suggestions to ntw developments and discoveries.
prerequisite for the introduction, dissem-The 68.000 suggestions for improve-Each yrar about 200/o of the topics are ination, and optimal use of our systems.
ment we received during the fiscal year are a clear expression of the creativity SuggestiOf18 f0f if11pf0Vemef1t (Siemens AG)in thousands and initiative of our employees. In 1980/81 there were only around 20.000, so that the number of suggestions for every 1,000 employees has more than E'(]
[)) Suggestions submitted tripled since that time, rising from 109 to 367. As a result, we were able to pay Suggestions receiving cash awards p
.j a total of DM 11.7 million in cash awards
..,q ['
]
to our employees in 1984/85, compared f
I with DM 2.9 million in fiscal 1980/81.
I e
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cation. Thanks go also to the members
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of the Joint Employees' Council and the bm4" local Employee Committees. Solid, real-10 istic cooperation is essential to ensure 0
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1979/80 80/81 81/82 82/83 83/84 84/85 employees.
Savinga en milhons of DM 10 1 12.5 20.1 26 2 30 9 44 6 Cish twards in milhons of DM 2.3 29 54 7.3 87 11.7 12 L
Co' porato structuro r
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in 127 countries
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associated companies" l
- 'h deladeaf list of S ement companies and major assocam'ed wmpan'et es gaven on pages 44 to 46
- n whwh !t emens holds a dae(t interest 13 i
Csmponcnts Group Sa'a= <'" " ' o">
Integt tedC/rcuits DI:cret)Sem/ conductors 28 P=lve Components 2.4 E/:cfron Tube, y
2.0 1.2 08 0.4 Scles rise o
2 s
thrugh demand shrinks 2
2 2
2 2
2 Th> market for standard /ntegrated c/r-sales of semiconductors, which account first place in Europe and third place in cult) su//ered a ma/or setback, and the for almost two-thirds of our business.
Japan. Our new " Smart Sipmos" transis-other regments grew at a signl//cantly One important product line consists of tor is an intelligent circuit combining lower r:te. A/ter the boom /n 1983/84, integrated circuits for public and private a power switch and logic functions on orders received, at DM 2.S b////on, were communication systems. We wilt be one a single chip. This combination makes 40/0 below those of the prev /ous year, of tha first manufacturers to offer a it possible to drive a Smart Sipmos On tha other hand, we boosted our complete set of ten highly sophisticated transistor directly with logic signals from sale 3 by fgo/0 to DM 2.3 bl//lon, or chips as a basis for communication sys-a microprocessor. It reports back its about 40/0 of S/emens' total sales. In tems conforming to the ISDN (Integrated operating state and protects itself and add /t/on, about DM 800 (prev /ous year Services Digital Network) standard. Four the connected equipment by monitonng 800) mill /on worth o/ components were of the chips are already being produced temperatures and voltages.
cuppl/ed to the other sectors of the in Munich and Villach; of these, two are Comp:ny. AIIin all, we expect that also being manuf actured under license Strong growth dem:nd w/IIremain weak dur/ng the by Intel and Philips.
In surface mounted components current //scalycar.
Equally important are high-perfor-The Passive Components Division, mance logic semiconductor circuits for which accounts for a good 25e/o of the The components market, and the mar.
general-purpose computers. With 10.000 components business, doubled its sales ket for integrated circuits in particular, gates on a cingle chip and a delay time of Surface Mounted Devices (SMD).
has long been known for its extraordi-of less than 200 billionths of a second, These space-saving components -
narily strorig fluctua' ions. After an un-we are setting the international pace.
capacitors, resistors, or inductors with-precedented surge in 1984, an equally out leads - are mounted directly on the drastic reversal has now occurred. Even The Smart S/pmos trans/stor surface of the printed circuit boards by though we had concentrated our activi-protects itsel/ aga/nst overload /ng automated equipment. Another growth tiss on circuits for high performance Other important semiconductors in-sector consists of surface-acoustic.
communication and automation Sys-clude the transistors and thyristors used wave components. They are now used tems, we met with a pronounced overall in motor controls and other power elec-extensively in television sets and video decline in orders for semiconductor tronics applications. Our Sipmos transis-cassette recorders, because they elimi-components; the downwa*d trend was tor, which switches electric currents with nate balancing procedures. We are the l
less severe in passive componente On remarkably low losses, accounts for over w-rld's second largest supplier. With the other hand, orders for microwave 100/o of its worldwide market, holding new surface-acoustic-wave filters, we tubes and gas lasers have increased have been able to enter higher fre-I' I
quency ranges, thus opening the way to New chips for commun/ cat /ons
\\
their use in such professional applica-
% j.k tions as radio relay systems.
.I In spite of the problematic market conditions, we managed to expand our r
Capitalexpenditures rise sharply
\\
Af/crorlectron/cs can be a frigger for b'
Components - particularly the inte-Innovation, prov/ded the best wayis grated csrcuits of mfcroefectronics-are found to applyit inproducts and sys-the " building blocks" for all electronic tems. At our Af/croelectron/cs School, equipment and systems. The level of our we have recently begun to o//er our
$2,
competence in microelectronics often customers seminars in designing m
determines our competstiveness in circults adapted to their spec ///c needs growth sectors. For this reason we in-andin the use of Telecom ch!ps in creased our capita; outlays from DM 350 million to DM 650 milkon.
communicat/on systems.
14 J
I I
Integrated circuits are opening up new t>
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technicalpossibilities. For example,
^
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tion of a great many functions on one
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32,000 transistors on 28 square milli-
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l A large allocation went to the Mega
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Project, which is developing and manu-
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facturing memory chips with capacities 3
of 1 and 4 megabits, and, in particular,
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y Vi highly complex logic circuits. The coop-4 g.'
eration agreement concluded with To-Y y
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shiba during the fiscal year is designed f,
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to significantly eccelerate the start-up of
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production for the 1M-bit memory,inde-
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pendently of this project, development y
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I eration of memories and logic circuits is s
i proceeding on schedule with Philips.
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Work has also begun on the construc-D tion of an integrated circuit design cen-J' N 'yz,
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ter in Munich, where we will provide both I
our customers and our own develop-O~
C ment engineers with many computer-h
. g;g
\\#
I aided design stations to speed up the creation of integrated circuits.
Transistors and integrated circuits for the industry. We, too, will have to l
made of this material will be needed in make great efforts and expenditures, j
More research and manu/acturing the future for the extremely rapid logic Our chief goalin integrated circuit tech-j in fl0 U.S.A.
elements used in special-purpose com-rology is to set the pace with complex j
The geographical center for the wild-puters and for telecommunication sys-circuits for high-performance communi-j fire international development of micro-tems operating at ultra-high frequencies.
cation, inf ormation, and automation sys-I electronics continues to be the U S.A.
The basic principles are being estab-tems. By expWing the synergism be-Only a company with a1 operating base lished in collaboration with the Siemens tween our system-orier,ted sectors and in that country can play an active and ef-research laboratories in Munich and our the Components Group, we will be able ficient part in this technological process.
Research and Technology Laboratories to offer our customers unique advan-At our plant in Somerset, NJ, we are in Princeton, NJ.
tages.
i spending a total of about DM 120 million l
to expand our laboratories and set up a Great e// orts willbe necessary l
new production line for gallium arsenide From the market standpoint, the cur-components.
rent fiscal year will again be a testing one 15
P2wer Engineering cnd s*oe-nsed Automation Group Power Generat/on and Olstr/bution Transportat/on and Public Author /t/es Instrumentat/on and Control to Bas /c Industr/es o
Manufacturing Industr/es Standard Products 6
Fact:ry Automation Sys tems and Industr/a/ Electron /cs 4
2 Vigorous growth o
2 in cutomation 2
2 ee2 The key factors et/ect/ng our bus / ness make their production plants even more form the nerve fibers for the exchange of were the grow /ng econom/c recovery flex!ble and efficient. Of specialimpor-information among people, computers, in Germany and Western Europe and tance to our customers is the ability automation systems, and production extens/ve orders forpro/ects and sys-to respond quickly to changing market equipment. With Sinec, we are offering fems from some of our princ/ pal target conditions. Our automation technology just such a communication system for countr/es overseas. The automat /on makes this possible: first cf all, through automation and engineering. It is de-sector aga/n showed especla//y strong a comprehensive line of highly innovative signed to provide a comprehensive over-growC. Orders were up a he/ty fS%,
technical equipment, systems, and facili-all s/ stem uniting all sectors of the fac-reach /ng DM fJ.J b////on, The favorable ties; next, through our precise aware-tory,in order to speed up production, order s/fuat/on was re//ected /n an 8 %
ness of the problems encountered in improve quality, and reduce costs. Our galn In sales, wh/ch amounted to DM application and of the expectations of our slogan is Open Communication,which 12.0 b////on, or22% of the Company's customers. Both these elements form means communication not only among totalsales We expect further expan-the foundation of our technology's suc-our own systems, but also with the auto-slon In the current //sem/ year, cess on the market.
mation systems of other manufacturers.
We continued to expand our leader-Unified automation ensures the Good business conditions in Germany, ship pesition in Western Europe, the key trouble-free integration of all the produc-b:s:d on a boom in exports and bnsker market, with regard to numerical con-tion units and allows even medium-sized r pital investment activity, produced a trols and drives for machine tools. In and smallindustrial plants to achieve strdy upturn in our sales to industry.
Europe, Simatic still ranks first among better utilization of their facilities.
This h d a favorable effect both on tradi-the programmable automation systems, Open communication requires uniform tion 1 standard products and on automa-but we also succeeded in boosting our interfaces and protocols for the ex-tion equipment and systems. We bene-share of the growing world market. Our change of information, wtich must be fit:d not only from this healthy economic Teleperm M process control system is discussed and agreed upon among the tr:nd but also from contracts with the increasingly popult.r with international various manufacturers. We are therefore G:rm*.n Federal Railways and a signifi-customers.
participating in a standardization project cant increase in orders from the power Robots and manipulators are taking called MAP (Manufacturing Automation comp:nies, partly as a result of the regu-over more and more complex aspects of Protocol) initiated by the General Motors 11tions for flue gas desulfurization.
the production process. We supply the Corporation in Detroit, Mt. Siemens.
Af t:r a slack previous year, export requisite robot controls, sensors, and as a European manufacturer,is working ord:rs, too, showed vigorous growth.
drives. The low inertia of our new AC on this project together with the top Th2 positive trend in Europe continued, servomotors, together with precise American producers of automation sys-and a number of important large-scale speed controls, makes it possible to tems, to promote the international stan-prohets were contracted by the People's accelerate the movements of robots and dardization of industrial communication.
R:public of China, Indonesia, and Co.
to provide f aster start-up and braking.
tombia compensating for the shnnking Robots and manipulators are recording Higher expend /tures for environmenta/ [>
ord r inflow from the Middle East annual growth rates of 350/o to 400/o.
protect /on: Th/s /s one of the two This favorable order situation also We aim to obtain a significant share of "scrubb/ng towers"of the //ue-gas boosted capacity utilization at our plants. this growth with our controls and dnves.
desul/ur/iation fac///ty at the 770-AfW which rose to 830!o, compared with 720!o Wl/helmshaven powerplant operated in the previous year.
Open commun/ cat /on by PreussenE/ekfra Aktiengesellscha/t, in automat /on eng/neer/ng Hanover, /n which the su//ur /s removed Steady progress An essential feature of the factory of from 99 m/Ilion cub /c /eet of1/ue gas in factory automat /on the future will be a pervasive flow of in-every hour. Siemens /nstrumentation Mora and more branches of industry formation covering the entire production and controls operate and mon /for the ara using factory automation systems to facility Communication networks will system.
16
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P:wIr Engin cring cnd Automation Gr:up Numeric 1 controls f:r machine tool 3 World market in billions of DM 4
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9 Since the use of our decentralized pro-desulfurization facilities at power plants High-performance traction vehicles cess control systems has given us ex-in the Federal Republic of Germany, for the German Feders/ Railways tensive know-how in this field, we have Austria, and the Netherlands. So far we Following a five-year operating test of been playing a vital role in this standardi-have delivered or booked orders for prototype rolling stock, the German Fed-zation project.
about 200 gas analyzers for round-the-eral Railways has ordered sixty Series The MAP Project was one of the high-clock monitoring of the carbon monox-E 120 locomotives from German manufac-lights of the 7th Autofact Fair in Detroit, ide, sulfur dioxide, and nitric oxides con-turers.We are participating with a sub-where we had an opportunity, using a tained in flue gases.
stantial share of the electrical equip-mock-up of an industrial plant, to dem-Also contributing to environmental ment. With financial support from the onstrate the international performance protection is a device making its debut German Federal Ministry for Research level of our automation systems and at Frankfurt Airport. This is a static fre-and Technology, the ICE (Intercity Ex-their ability to communicate with sys-quency converter, which draws current perimental) train has been developed tems of other manufacturers.
from the local power supply and feeds it and built as a precursor of future high-at the customary on-board frequency of speed trains for the German Federal Enviro rments/ protection systems 400 Hz to airplanes parked in the hangar Railways. Siemens made a decisive con-Industry is intensifying its efforts to or at the terminal. The converter sup-tribution,in terms of both development operate its facilities in a manner that is plies power for the lighting, heating, and and components, to this train, which is highly compatible with the environment.
air-conditioning systems, as well as the equipped with powered cars at both This is evidenced by a series of orders to fuel and hydraulic pumps. The auxiliary ends and is designed for a top speed of supply power engineering equipment, in-turbines in the plane can be turned off, 220 mph.
strumentation, and controls for flue-gas eliminating noise and exhaust gases.
Large orders from the People's Pepubile of China I h.,,j a' f
Our business relations with the Peo-(
y ple's Republic of China have undergone a remarkable expansion, with orders re-
-~ 3 ? g ',.;mm:
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_ _a er with BBC, we signed a contract to 7,
q.,-
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build static converter stations with a val-T-
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ue of approximately DM 190 million for a high-voltage DC transmission (HVDC)
,Mlih system. The system transmits the elec-i Aa, e
- y. -
',. 4 trical power generated at the hydroelec-
. g""" Na b:M g[.
tric stations on the Chang Jiang ie r
(Yangtze) River to the metropolis of y,
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<3 Highly automated flexible manufactur-
~.
_ ~ LV Ing cells help companies of allsizes to Y '
4gyrmar adjust quickly to special customer re-
)
(,--..g, quirements and changed market condi.
/
P tions. Ourpicture shows a manufactur-Ing cellin a machine tool factory. In the n
foregroundis the " brain"of the entire
&, l
- .ai
.n
_w unit - our Sicomp cell computer.
18
l l
I i
l l
Shanghai, about 625 miles away. It is the l
~/
for scientific work and to promote the country's first HVDC line.
I We are also supplying the electrical
'll training of a new generation of highly equipment and automation systems for 4
A qualified scientists and engineers for in-dustrial automation.
the hot-strip mill of the Baoshan !! rolling mill and will be responsible for training the Chinese specialists. For the 600-MW Steadygrowth ant /c/ pated
~
Relying on our advanced technology, hydroelectnc plant in the Province of
/O Q
with which we intend to maintain and Yunnan, we are supplying the genera-
~-
strengthen our domestic and interna-tors, as well as the instrumentation and tional position, we expect that our busi-4 control system and the protection equip-ness as a whole will continue to prosper ment, both of which are operated by a in 1985/86. This applies in particular to process computer. This is the first con-the rapidly growing field of flexible manu-tract in the hydroelectnc sector that we factunng systems. However,imponder-have received from the People's Repub-a able market factors, for example, in Latin lic of China. We are participating sub-Rap /d and e///c/ent ra//way systems are America and the oil producing countries, stantially in the supply of 300 heavy an essent/a/prerequ/s/te for the per-may prevent the order volume from freight locomc tives.
formance and dynam/sm of a country's growing to the same extent as in the We shall continue to intensify our col-economy. But even goodrai/ ways must year under review.
laboration with Chinese partners. During be constantly /mproved. The h/ph-the period under review we concluded speedInterc/ty Exper/ mental (ICE) 13 new license agreements for various tra/n of the German FederalRal/ ways /s product groups, including hyaroelectric able to reach 220 mph in test runs. We i
generators, protection systems for made a dec/s/ve contr/but/on to /ts power networks, sophisticated crane engineer /ng des /gn, act/ng as project equipment, and ship automation sys-leader for the ent/re electricalsystem 1
tems.
of the endpower cars.
In Indonesia, we have been chosen as I
the general contractor for the turnkey activities related to the planning, design, construction of 35 new diesel power and marketing of industrial automation I
plants with a total output of 140 MW and equipment and systems 850 highly qual-i an order value of about DM 240 mil! son.
ified employees have already moved into j
the new buildings, where the offices Automation eng/neer/ng have been designed for the use of ultra-and traln/ng center modern technology right at the work-Our capitalinvestment budget was place. A new automation training center l
further increased, from DM 500 million to mil accommodate more than 500 training DM 800 million. The highlight was the stations and will be available both to our completion of the first stage of the new customers' specialists and our own em-center at Nuremberg-Moorenbrunn.
playees.
Af ter a two-year construction period. of-In cooperation with the Fnedrich-Alev i
fice buildings for 1,100 employees and ander University. Erlangen-Nuremberg.
various ancillary facilities were put into we have embarked upon a research proj-service at this location, where we have ect involving flexible manufactur!ng sys-con 9entrated a substantial part cf our tems. Its goalis to create a fruitful basis i
19
Electrical Installations Group sai:s <>" '"" " e' o=>
4.0 Power Cables 35 Installation Fquipment, Lighting Systems, and Automotive Electronic Components 39 Electricity Meters and Heating / Alt-Conditioning Systems Wholesale Business, Electrical Contracting and Installation Systems 2.5 2.0 1.5 1.0 05 Business affected 2
m a
2 2
2 ee8 l
by a soft construction market t
The persisting so/iness in the domes-time. We have an especially dense dis-with a real-term dechne in the market for t/c construction industry and keener in-tribution network in the Federal Republic our products. The situation in most temational competition had a negative of Germany and a presence in 127 coun-European countries is strikingly similar:
e//ect on the market. We nevertheless tries throughout the world.
stagnant investment in construction succeededin solidi /ying ourposition despite overall economic growth. The and, to some extent,improvingit. At Stagnant construction activity-building market in the oil producing DM 3.2 billion, orders received were up more orders fromindustry countries was also weaker than had slightly over the previous year, while Our domestic business followed vary-been anticipated. On the other hand, sales, at DM 3. f b//flon, remained at the ing trends. Some segments of the mar-East and Southeast Asia, and the Peo-same level, representing 6% of total ket were weak; others expanded. Over ple's Repubhc of China in particular, Siemens sales. We do not expect the 600/o of our products, particularly cables gained in importance.
market situation to change substan-and installation equipment, depend on flally during the new /iscalyear.
the construction sector. The slump in Rapid expansion this industry posed a serious obstacle in automotive electronics Our line of electncalinstallation prod-for us. We did our best to offset the de-Increased safety, reduced pollution, ucts, with over 25,000 different items, clining demand from new starts with in-and more dnving comfort are the out-may well be unique worldwide in terms creased efforts in the renovation market.
standing benefits to be gained from the of its breadth and versatihty. It ranges A degree of compensation was provided use of electronics in automobiles. Our from power cables, installation equip-by heavier orders from industry for such Automotive Electronic Components l
ment for protection, switching, and dis-items as special cables, installation Subdivision started life in 1980 at the Re-inbution, special-purpose luminaires, equipment, luminaires, and tubular heat-gensburg manufacturing plant. It works and automotive electronic components, ing elements, but overall we were faced with the automobile industry on three through electncal heating and air-condi-different aspects of the automobile -the tioning systems, tubular heating ele-body, the engine, and the information I
ments, heat pumps, and electncity me-
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system - supplying, for example, bhnker i
ters, to complete installation and hghting W<,
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relays, ignition control systems, and on-D k
board computers. Recent introductions systems. Modern manufactunng meth-ods, high quahty and product reliabihty, include several types of microprocessor-and competitive pnces are the basis for controlled ignition systems, which are our successful market penetration. A vi-suitable for four, six, and eight-cylinder tal factor is the close contact we main-vehicles. They reduce both operating tain with customers, which enables us to
- osts and pollutant emission.
fill their needs for our products at any The steadily growing proportion of
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electronics in automobiles is opening Despite d//// cult market conditions, t-up interesting market opportunities of power cables accounted for about one-which we will take full advantage, partic-N third of the Group's sales. The photo, ularly with high-tech products and sys-taAen at our Berlin cable factory, tems. We are working to develop an air-shows one stage in the manu/acture of bag monitoring system, as well as con-l a single-conductor all-// fled cable with trols for a four-wheel drive that engages a rating of 380 kV. This extra-high volt-automatscally and for a locking dntferen-age cable, with a length of 11.5 miles tial.
and a conductor cross section of 1,200 We installed our Sitralux stage hghting mm', is destined for the Vienna Mun/ci-control systems at the Gasteig Cultural pal Power Company.
hi Center in Munich, the Bremen Municipal 20
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and the Nederlands Congresgebouw in nects the luminaires with one another in their operating condition.
The Hague.
a wealth of different combinations.
I Our fully electronic control gear for European protect /on technology H/gh-qual /ty //ght/ng /or the o///ce conventional fluorescent lamps is un.
/s becom/ng standard 1
Modern design and advanced technol-usually efficient and ensures a more Two different sets of rufes for electri-l ogy are the keynote of our new BS 900 pleasing effect. Compared with ordinary cal installations and installation equip-l lighting system. This system provides control gear, it increases luminous effi-ment have evolved in the U.S.A. and in optimum lighting for workplaces, cacy, reduces power consumption and Europe. Both have an influence on the whether or not they are equipped with cuts operating costs. A unique feature of rest of the world. In some countries the display terminals. It operates not only lamps using this gear is that their output standards have merged. in others they I
with individual luminaires, but also with remains constant even when there is a exist side by side. We supply installation change in the line voltage. Neither is equipment complying with e;ther Euro-there any flickering or humming when pean or American specifications. An in-l We have decades olexper/ence /n they are turned on. We are market lead-creasing number of nations are orienting equ/pp/ng sports arenas allover the ers with these products.
themselves to the European standards, world w/th technolog/cally advanced Many facilities and installations must because they are more responsive to the light /ng systems. In Seoul, South Korea, be lit constantly for reasons of safety.
users' justifiable demands for protection l
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we have Insta//ed 928 //ood//phts, each Our new starter for gas-discharge or in electrical installations. We expect that i
i with a 2,000-watt lamp, /n the ma/n sta-high-pressure metal-vapor lamps per-this trend will further enhance our oppor-l d/um and one of the sma//er stad/ums mits units that have been switched off tunities on the international market.
l Ior the 1988 Olymp/c Games.
but are still hot to be relit immediately; V
No major changes i
We see no indications that the market situation will change significantly during the current fiscal year. A further decline in new construction starts is to be ex-pected, which will be only partially com-l pensated for by renovation projects. We shall therefore pay partictlar attention to those products and systems that are in-dependent of the volatile trends in the building market. Our export activities will be further intensified, with the markets in
.lMk ew, East and Southeast Asia playing an es-t
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Communicati n cnd saies fin d" liens ef ou>
12 0 Inf rmation Systems Group J5 Commun/ cat /on Term /nals Priv; to Commun/ cation Systems and Networks Data Systems 7.5 6.0 4.5 3.0 1.5 0
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business expansion ic 2
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Ctrong expans/on and /ar-reach /ng same time, we announced a personal Sinix operating system, which is compat-Investment dec/s/ons, ch/e//y des /gned computer which also operates with ible with any of the numerous software f 3 he/ghten product /v/ty at ourplants, BS2000. This PC will make it even easier programs available throughout the world were the h/ph//ghts of the //scalyear.
for our customers to start their own data for Unix systems. These PCs are now Orders rece/ved rose by 174'o to DM B.2 processing activities and to expand even more powerful. The multi-terminal b////on, and sales by 19% to DM 7.9 bil-them as their requirements increase, system will soon be expanded to as
//on. In addit /on, equ/pment with a value without having to make expensive ad-many as 16 stations, all with access to c/about DM BOO (prev /ous year 700) justments in order to adapt their soft-common printers and memories. We m////on was suppl /ed to other sectors ware to other operating systems.
have opened up new applications for our of the Company. The Group accounts PC-D with the MS-DOS operating sys-forapprox/mately IS% of total 3,000 users of BS2000 tem by adding graphics programs and an Slemens sales. We Intend to boost For years we have been systematically option permitting it to be used as a re-sale] substant/ ally aga/n in the current improving our BS2000 operating system trieval and editing station for interactive
//scalyear, as the key element in our line of data videotax.
processing equipment. As a result, the Th3 Group's core activity is to supply total number of its users has grown to Accurate Informat/on high-pirformance office systems. The about 3.000. In its penormance category, in tract /ons o/a second m;rk t in communication and informa-Siemens BS2000 has thus become An increasing number of users with a tion systems for business and govern-Europe's most popular operating system computer at their workplace need more j
mint is expanding at double-digit rates for general-purpose computers.
storage capacity without sacrificing rapid l
throughout the world. In general, we in Southern Germany, social security access. This is particularly true of elec-k:pt a firm grip on our share of the world administrations placed orders for five tronic " filing cabinets" and computer-mirket. despite stiff competition in many large mainframes. The Deutsche Bundes-aided design (CAD) systems. Our new I
s:ctors. In our domestic business, which post (Posts and Telecommunications MegaFile high-performance disk storage
)
tecounts for about 600/o of sales, we Administration of the Federal Republic unit takes only % of a second to find rnliz:d the highest growth rates with of Germany) is receiving 23 optical docu-the desired information among more compact and feature telephones and ment readers for its postal giro offices.
than 300 million bytes - the amc ant of g:n:ral-purpose computers. The main We supplied the Deutsche Bank AG with data contained in 300 large office files.
clim:nts in our international expansion 24 of our 7.570 general-purpose compu-This unit, the size of an encyclopedia vol-w rs general-purpose computers. laser ters and 80 front end processors for ume, features the highest storage den-pnnt;rs, and telephones.
data communication. The bank is now sity in the world Business in the U.S.A, one of the Group's largest domestic Strong growth customers.
In dat) systems A top-ranking event in our interna.
Our BS2000 operat/ng system for gen >
Th3 Data Systems Division is the lar-tional business was the conclusion of a eral-purpose computers /s one of the g:st s:gment of the Group. accounting master agreement with Landsbonds der most w/dely used /n Europe. In the fu.
for timost half of its sales. The growth Christelijke Mutualiteiten, a social insur-ture, Slemens customers who select a rate h:re was over 2040. The perfor-ance company in Brussels, for 49 main-un/ versal operaf/ng system w/// be able m:ncs of our 7.500 general-purpose frames with a Transdata teleprocessing to start o// with a reasonablypr/ced computers using the BS2000 operating network.
personalcomputer and upgrade to a syst:m has been increased. The former large mainframe, without having to maximum capability was 8 6 million op.
Personalcomputers with change their software. One of our cratsons per second (MOPS), but in the greaterpower biggest customers in Denmark is the futura the most powerful computer will Our PC-X and PC-MX stand-alone and Pens /on Insurance Adm/n/stration in achi;ve a speed of 27 MOPS. At the multi terminal office computers use the Copenhagen.
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e Japan, and Europe is off to an extremely A fullspectrum come one of India's three telephone promising start.We have strengthened of text terminals and telephones suppliers, and the Japanese Postal Ad-our front-rank international position Modern teletex and videotex services ministration has given our telephones its among the suppliers of laser printers.
are steadily gaining ground. Our new approval. We delivered to the U.S.A. the Almost one-half of our printers were T4200-50 screen-based typewriter with first digital telephones for our Saturn dig-delivered to system manufacturers and its teletex capability can now also be ital communication system, which was end users in the U.S.A.
used as an aid in the processing of developed in that country.
forms. We offer a full line of videotex TcI:x r: mains a vitalservice equipment, ranging from retrieval terml-The first "Hicom" systems Business in the Communication Termi-nals to the PC-D as an intelligent editing are now operational nals Division increased by more than terminal.
Almost one-third of the Group's busi-250/o. The Division, which includes text We have made further additions to ness is dcne by the Private Communica-terminals and telephones, accounts for our array of telephones. The Deutsche tion Systems and Networks Division.
about one-fifth of Group sales. For the Bundespost again made a significant Outstanding events were the announce-telex service, which continues to domi-increase in its purchases of " Dallas" ment of the new "Hicom" switching sys-nate text communication, we recorded compact telephones and "D0sseldorf" tem in December 1984 and the start-up good growth rates for our electronic feature telephones. We have adapted the of the first units during the following Teleprinter Model 1000 and its succes-electronic telephone to the different na-year. With the introduction of "Hicom,"
sor, the 1000S, which is equipped with tional requirements in a number of coun-Siemens becomes the first manufacturer a display terminal and a diskette. We are tries, including Great Britain Australia, to offer a private ISDN communication the world's largest manufacturer of tele-and the Philippines. By granting licenses system for voice, text, images. and data printers.
and supplying components, we have be-in a single network, on one line, and with just one call number. The system op-mn-
' ^' ~
erates according to the worldwide stan-dard of the Integrated Services Digital K
Network. Orders for more than 10J "Hicom" systems have been received to date.
f With the multifunctional display termi-l nals developed for "Hicom," it is now possible to transmit texts or retrieve in-1 formation from a data bank in the course e
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of a telephone conversation. The new
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computersupportin their work. The
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texts, or keeping accounts. Here a patent attorney is reviewing important v
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With "Hicom"(from ourplantin Witten on Ruhr), Siemens has become the first l
manufacturerin the world to offera
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private ISDN communication system.
This equipment makes itpossible to I
accompanya telephone conversation with texts, images, and data. We re-gard "Hicom"as a cornerstone for of-fice communications of the future.
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the charges or the number of the calling E
party.
W Our PABXs in EMS technology, which
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were put on the market six years ago,
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i are still strong sellers. So far we have re-ceived domestic and international orders j
. l[
[l3 for 65,000 EMS systems, with a com-bined total of about 3.5 million line units.
s in the U.S.A., Japan, and Australia f
Digitalcommunication systems Our fully digital private voice and data communication systems were particu-
. /
i larly successful abroad. The Saturn fam-
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ily, developed in the U.S. A. at our labo-
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its position in the U.S. market. In addi-N 2
\\ \\j tion, Saturn succeeded in entering the g
1 Japanese market. With the EMS 601 sys-
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fully digital, our sales in Australia almost doubled. We have so far booked orders
((j j
in about 70 countries for fully digital communication systems with a total of our customers to make optimum use of Cap /tallnvestments for future growth over 600.000 line units.
the new technology. We have increased To ensure future growth, we doubled the faculty of our Communication and our capital expenditures during the fiscal A strongermarket presence and Data Systems Schools to 250 lecturers:
year, concentrating on increased capac-intensive tra/ning for our customers about 55.000 customers and employees ity and productivity at our plants. New in order to arnve more rapidly at an attended the courses and seminars.
computer-assisted production knes will appropriate position in the market, we bring about further improvements in flex-have stepped up our cooperation with Communication in open networks ibility and quakty. Major proiects for the distnbution companies abroad. In the With increasing frequency, users are years ahead are an additional data sys-U S.A., we are working with Tel-Plus insisting that all the equipment in their tems plant and a new factory for mass Communications. Inc., New York City, offices, regardless of the manufacturer, storage units and laser printers.
the largest sales and service company should be able to interoperate. We are Our long-term strategy provides for for pnvate communication systems in responding to their demands with the the expansion of our sales organization, that country. To strengthen our ties with Siemens SBA office architecture, which steady improvement in technology, and Tel-Plus, we increased our holding to is based on the Open Systems intercon-high capital outlays at our plants. We 350/o. We are starting to distnbute pri-nections (OSI) Standards. This guaran-therefore feel well equipped to strength-vate communication systems in Great tees that equipment made by others can en our position, particularly with regard Bntain through Norton Telecommunica-be integrated into our networks, so long to office systems, in a rapidly growing tions Group PLC. London. in which we as it meets these standards. At the same market. In the current fiscal year, we in-i raised our holdings to 28 0/o.
time we give our customers rehable tend to achieve another substantial sales Our intensified training and continuing long-term guidehnes for their purchasing increase.
education program is designed to permit decisions.
25
Medical Enginscring Group saies <># e'ii'eme er ou>
X-rzy Systems Cross-Sect /onalImaging Systems and Therapy 5.25 Electromed/calSystems 4.50 Dent:/ Equ/pment Hrar/ng instruments 3.75 3.00 2.25 1.50 1
0.75 Orders top DM 5 billion for the first time 2
eae8 W3 took advantage of the favorable to the patient; the results are even more Mob //e MR tomographs econom/c climate to furtherimprove reliable.
tar the U.S.A.
ourpos/t/on as a lead /ng supp//er of The principal use of this microproces-The first mobile magnetic resonance m;dics/ systems and equ/pment. Or-sor-controlled device is in diagnosis, but tomographs were delivered to U.S. cus-dIrs rice /ved rose by fSWo to over DM it also has valuable therapeutic applica-tomers during the fiscal year. A Magne-S b///lon, and sales by f3 Wo to DM 4.5 tions. In cardiology, a case in point is tom unit, adapted for this specific pur-b////on, or B % of the Company's total coronary angioplasty, in which, under pose, is installed in a trailer. The image bu:1 ness. We take a con // dent v/ew of radiological control, the physician intro-quality achieved is comparable to that of prosprcts for the current //scalyear.
duces a balloon-tipped catheter into a a stationary MR system. The mobility re-coronary vessel via the brachial or fem-sults in better utilization and cost distri-oral artery. The balloon is inflated, press-bution.
We succeeded in stabilizing domestic ing the deposits against the interior wall business at the high level of the previous of the coronary artery. The arterial con-Many newproducts year. Good growth rates were again re-striction is widened, and the blood can We have introduced a particularly corded in the important U.S. market. but again flow freely to supply the cardiac versatile sector scanner for ultrasonic di-business was also on the increase in Eu-muscle. This combination of high-tech agnosis in internal medicine, cardiology, rope and East Asia, where the People's diagnosis with a less demanding thera-and neurology. The portable "Sonoline Republic of China took the lead, tripling peutic approach makes it possible in SX" delivers high-quality images and its order volume. With the exception of many cases to avoid bypass surgery.
data, as well as detailed documentation Saudi Arabia, the Arab countries showed Direct treatment costs are lowered, and of the results. It is extremely simple to comparative restraint in purchasing.
the periods of hospitalization and con-operate.
valescence significantly reduced.
The innovative dental station that we Leed/ngpos/t/on introduced two years ago at the Interna-in computed tomography tional Dentistry Exhibition in Munich con-l Our technological advantage in the tinued its progress in fiscal 1984/85 with l
field of computer tomographs (cts) even greater success. The domestic or-weighed heavily in the balance against der inflow for the new Sirona family of our competitors. The order volume for equipment doubled, and customers these products rose by 200/o. The highly abroad are also responding enthusiasti-successful Somatom DR H is one of the cally. For example, in the past twelve fastest CT scanners in the world. In an months we received over 200 orders equal amount of time,it acquires 300/o from Canada alone.
more data than its predecessor, display-r in addition to sophisticated technol-ing the image on the screen immediately
[
ogy, our new Stratos hearing aid has an I
2 exclusive design which will help to se-after each section has been scanned.
~
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%s Tl}3 <3 For the deaf and those w/th severely Our new Bicor cardiac angiography
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/mpaired hearing, our Min /-Fonator equipment for the radiologicalimaging of
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!& offers a newlink to the/r surround /ngs.
f#'
Th/s dev/ce converts the various blood vessels shows the heart in simul-
., s taneous two-plane projection. The anat-j acoust/cals/gnals - speech, mus/c, 1
amb/ent sounds -into palpable vibra-omy of the vascular system and any f aster and more accurately. The exami-I'
' (.
t/ons on the wr/st. This makes it eas/er pathological changes can be perceived for the users to lipread and to p/tch nation is performed with even less risk
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the/r own voices at a suitable level.
26
i cure greater acceptance for heanng
- y aids. Not only because of its appear-ance, but also because it is easy to op-
~,.
erate, compact, and functional, it met
/< : i d with an instant response on the market.
We further strengthened our position
)
in cardiac pacemakers by acquiring the
/
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s pany, Pacesetter Systems, Inc., Sylmar, f'
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creased our share of both the U.S. and e\\
world markets.
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Technology cuts costs l~
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m rising health care costs have unleashed e
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w -
Medical systems not only make a vital
/
, /-
contnbution to the investigation of dis-
, g' eases affecting organs, tissues, and the a
vascular system; they also help to en-most two-thirds since 1965. In computed Ournew B/corsystem forcard/ac an-sure that more accurate diagnoses are tomography, the savings amount to be-g/ographycan be usedboth for the ra-made in a shorter time, that therapeutic tween 30 and 500/o; in angiography, to dic!og/ca/ /maging of blood vesse/s and measures are more precisely targeted, between 40 and 650/o.
for the e//ect/ve treatment of vascular and that patients are less affected by ex-constr/ct/ons w/th a balloon-t/pped posure to contrast media and radiation.
Furthergrowth anticipated catheter. One of the first B/cor units When used responsibly by physicians, For the current fiscal year, we are was delivered to the Emory Univers/ty medical engineering equipment be-looking forward to a positive trend both School o/ Medic /ne In Atlanta, GA.
comes a means of controlling health in Germany and abroad. Although we Cardiac angioplasty substant/a/ly low-care costs. Medical systems represent cannot count on the same rate of expan-ers the treatment costs for cardiac /n-only a small share of these costs. The sion in the U.S.A., we can again expect farct/ons.
capital investment and subsequent op-high growth rates in Western Europe, l
erating costs for large-scale diagnostic certain Eastern European countries, and i
I.
and therapeutic units make up a scant in East and Southeast Asia.We intend to l
10/o of the total.
secure an above-average share of the i
Many studies have recently been growing worldwide market for medical I
made to determine the cost-reducing ef-engineering equipment.
fects of medical engineering equipment l
in diagnosis and therapy. A long-term survey from the U S.A. shows, for exam-pie, that the annual cost of treating a pacemaker patient has been cut by al-27
Tol communication Natwsrks saies <ie ei'liee ef ou>
12.0 cnd Security Systems Group
,15 Pub //c Commun/ cat /on Networks 9.9 Safety cnd Security Systems 7.5 6.0 4.5 3.0 1.5 Digital network technology o
e 2
m m
e e
m is prevailing worldwide 2
2 2 e:
The grow /ng need fornew commun/ca-good two-thirds of Group sales. In just technology, among the roughly two mil-t/on 3 serv /ces and techn/ ques is mak-a few years, our EWSD digital switching lion line units operating throughout the Ing it necessary to upgrade the ex/st-system has prevailed in the stiff compe-world in circuit-switching systems for Ing cnalog networks to d/g/tal, Inte-tition for the hotly contested world mar-data communication, will be installed grated networks. The d/g/talswltch/ng ket. So far, a total of 37 telecommunica-during the current fiscal year. Together and transm/ss/on systems that we have tions administrations in 21 countries with our subsidiary, Databit, Inc., Haup-de:/gned for th/s purpose have been have decided in favor of EWSD, and over pauge. NY, we now supply more than cell /ng In increas/ng numbers through-five million line units have been ordered.
500/0 of the packet-switched network out the world. Orders rece/ved rose by When the digital telephone network is equipment purchased by the Bell operat-S% to DM B.B b////on; we boosted sales expanded into the ISDN (Integrated Ser-ing companies in the United States. We by 19 % to DM B.9 b////on. The Group vices Digital Network), the same copper have already introduced these packet-thu3 contributed fB% to our Com-telephone wire that is in service today switched exchanges in nine countries.
pany*c totalbusiness. In the current can be used not only for telephone calls, ye:r, we expect to ma/ntain sales at but also, at the same time, for the high.
H/ph-tech the came h/ph level.
speed transmission of text, stationary for transmiss/on systems images, and data.
The strong expansion in national and Domestic orders for long-distance international telecommunications and switching systems remained strong.
EWSD comes to the U.S.A.
intensified development of digital net.
Orders for local exchanges were lower.
Ever since an international agreement works as the basis for the ISDN of the as the telephone density is already very was reached at the end of 1984 on the future produced substantial overall high. On the other hand, orders for opti-basic standards for the ISDN, customer growth in the market for transmission cal fiber cables rose substantially. Even interest in ISDN equipment has been on systems. Our sales have increased at so, total domestic orders remained be-the increase throughout the world. In the above-average rates, almost tripling over low the high figure reached in the previ-future it will be virtually impossible to sell the last six fiscal years.
ous year, when a number of large con-switching systems that fail to meet ISDN Far and away the greatest proportion tracts were signed.
standards. In Mannheim during the cur-of this growth is attributable to digital International business rose by one rent fiscal year, we shall start to build the technology. Our new generation of multi-third, to 500/o of sales. We booked sub-first ISDN exchange ordered by the plex equipment, which will permit multi-stantial orders from Brazil, Paraguay, Deutsche Bundespost. It will be com-ple use of transmission routes, was the and Taiwan for our EWSD digital switch-missioned in the final months of 1986.
first to pass the Deutsche Buncispost's ing system and from Singapore, South The U.S.A. has also opted for an ISDN prototype test. The new equipmunt uses Africa, and the U.S.A. for the EDX text /
based on the international standard. This only half as much space and potver as its data switching system. Customers in will result in good business opportuni-predecessors. Our optical fiber trans-Australia, Cameroon. Ecuador, and the ties for EWSD. Wisconsin Bell is the first U.S A. signed major contracts for trans-U.S. telephone operating company to in the future people wi// communicate C>
mission systems, while orders for mobile conclude a three-year master agreement worldwide over a s/ngle line and a radio equipment came from Austria, the with us. It has already ordered its first sing /e network - with vo/ce, text, Im-Netherlands, and Belgium.
EWSD exchange.
spes, and data. This is made possible by the International /SDN standard. Our
/SDN-a source of future growth Marketleadership EWSD switching system is prepared for Sales of the Public Communication in packet. switched networks this role;it has already been selected Networks Division. which markets public We continued to expand our leader-by2t countries. At ourService Center exchanges, transmission equipment, ship position as the largest manufacturer /n Mun/ch, we are train /ng members of and communication cables. grew signifi-of text and data networks in the world postal adm/nistraf/ons from all over the cantly. The Division is responsible for a market. The milhonth line unit in Siemens world.
28
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Telecommunication Networks and Security Systems Group mission systems with speeds of 140M-Top pos/t/on In opt /calfibers to build an optical fiber plant in the im-and 565M-bit /s represent the state of in the U.S.A., by far the largest market mediate vicinity of our cable factory in the art worldwide. The 140M-bit /s sys-for optical fiber cables, our associated Neustadt near Coburg. Production is tem won the technical competition held company Siecor Corporation, Hickory, scheduled to start in 1986.
by the Deutsche Bundespost during the NC, produced almost 400/o of the coun-fiscal year.
try's total requirements, which came to Cont /nu/ng boom about 625,000 miles of fiber in 1985. As In safety and security systems Start-up of an ultra-modem part of the expansion of the optical fiber The Safety and Security Systems Divi-mob /le radio system cable network in the Federal Republic of sion, which accounts for slightly less in September 1985 test runs com-Germany,we supplied single-mode fiber than a third of the Group's business, menced in the Federal Republic of Ger-cables for the section between Karls-posted a double-digit growth rate.
many for the new generation of automo-ruhe and Stuttgart-the first section op-Among the railway signaling systems, bile telephones with our C 450 system.
erating with these fibers. They are signifi-our electronic interlocking for local and As of May 1986, the terntory of the Fed-cantly more efficient than the graded-long-distance trains is increasingly in de-eral Republic and Berlin (West) will be index fibers previously used. Therefore, mand. So far we have booked twelve or-fully covered by transmitter / receiver sta-starting in 1986/87, the Deutsche ders from four different countries. Over-tions. We are the largest supplier of this Bundespost will employ only single-all domestic orders declined, but interna-equipment. By means of an ongoing mode fiber cables for new installations in tional business was highly satisfactory.
" bookkeeping system" that keeps track its telecommunication network.
Particularly noteworthy is an order worth of the location of all the subscribers at in order to meet the growing demand DM 80 million to provide the signaling the EWSD exchanges, every activated for optical fiber cables, we are working equipment for the subway in Medellin, automobile telephone in the network can with Corning Glass Works, Corning, NY, Colombia.
be reached anywhere at any time. This i
feature, together with the ability to ser-vice more than 200,000 subscribers, makes the C 450 the most efficient mobile radio system in the world today.
For the international telephone traffic s.-
fiI over the Intelsat satellite, we built two new antennas with 105-foot reflectors at
[
Fuchsstadt near W0rzburg. The Deutsche Bundespost has also placed an order for 15 earth stations with 14-and 18-foot antennas.
A People who travel frequently, service C>
crews, and freight forwarders all want to be reachable at anypoint on their journey. Siemens is the contractor and
/h main supplier for the transmitter /re-ceiver stations in the new C 450 mobile n(
telephone network, which willpermit 5
more than 200,000 subscribers to make and receive calls with greater conve-nience than ever before.
30
U.S. nitrk t for optical fib:r cabiss in millions of fiber-kilometers, estimated 4
3 The opticalfibernetworks of the future willmake itpossible to communicate with full-motion video or to retrieve en-2 tire films. Our development engineers intend to make the network compo-1 nents economically feasible for a wide range of appIlcations. Here the ends of O
the fibers in an optical switch are being accurately adjusted within tolerances hhhhhhh$
ofless than one-thousandth of a milli-meter.
We have made our fire alarm and in-4 4M J
j trusion protection systems more conve-m; nient to use. Now even small systems
[
bt i
supply detailed emergency information 11 f,
through a color display terminal and a I
-/
N
-Q printer, making them attractive to small
-m and medium-sized businesses as well Y-sN.
~
as larger customers. A new emergency N
alarm offers senior citizens and the handicapped increased security at home. Using this device, which hangs around the neck, they can cause their
~
~
telephone to make an emergency call by means of a radio signal.
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in the Group's components business, gratifying growth rates were posted for
)
v i
l relays, plug-type connectors, and film Q'
J circuits. To accommodate the rapidly growing market for optical waveguide components, we are currently building a I
factory in Berlin to manufacture transmit-ters, receivers, plug-type connectors, t,
multiplexers, and optical waveguide couplers. In view of the sophisticated On the way cost still further. The Deutsche Bundes-technology that will be employed, the fa-to the universal widebandnetwork post plans to install the first wideband cilities have extremely low vibration coef-Our present work is aimed at develop-equipment in 1990.
ficients and are being equipped with ing new communication systems in order Our full spectrum of telecommunica-ultra-clean rooms.
to make even better use of new and tion transmission and switching systems existing networks and to offer innovative has given us a firm hold on third place in Systems fornationaldefense services, such as "mail boxes" for both the world market. Our intensive work on Siemens has been selected as the spoken and written messages The tele-the netwcrks of the future should make general contractor to adapt the future communication networks of the future it possible for us to continue to strength-Patriot anti-aircraft system to the specifi-will make long-distance communication en this position. In the current fiscal cations of the Federal German Air Force.
more and more like a personal encoun-year, although results may vary from An army command and controlinforma-ter. Wideband switching equipment and sector to sector, we will reach the same tion system developed by us passed rig-optical fiber cables reaching every user high overall sales figures as in the year orous operating tests in the course of will form a universal network, making it under review.
the most recent NATO Wintex staff ma-possible to see the other party on a dis-neuvers. At a cost of about DM 200 mil-play terminal, to hold video conferences lion, we are now erecting a new complex with many participants, or to transmit in northern Munich, where we will con-data at very high speeds. We are work-solidate all the activities of the Radio and ing to make the components and sub-Radar Systems Subdivision, which up to systems for the future wideband switch-now have been distributed over several ing systems and optical fiber networks locations.
ready for production and to lower their 31
Research and development Expen=s (in bitiions of DM) '
6.00 Basic and applied research Development of basic and key technologies 5.25 Product and systems development 4_59 3.75 3.00 2
2.25 1.50 0.75 Intensified research
~.
in growth areas 2
e2 We intensified our research and devel-More efficiency for the office prototype of a voice-input module for the opment efforts, concentrat/ng even In the industrial countries, almost telephone can understand the spoken more strongly on the Company's 500/o of employees are already engaged names of 50 of the most commonly strategic targets: electron /c off/ce sys-in office work. They need office systems called parties and dial the corresponding tems, the communicat/on networks of with greater versatility and convenience number. Another system will be able to the future, and factory automation. At to help them perform their assignments locate correspondence in the individ-the sar e time, we stepped up activ/-
more easily in less time.
ual's office data bank on the basis of a fles in the key technologies of micro-The most important result of our de-spoken description in the form of a con-i i
electronics and software des /gn. Total velopment work for the office is the tinuous sentence.
research and development expenses "Hicom" private communication system.
rose by DM t billion to DM 4.8 billion lt provides every workplace with the abil-An opticalfiber transmits during the year under review.
ity to transmit texts, or retrieve informa-the Encyclopedia Britannica in tion from a data bank,in the course of a one and a half seconds The number of employees working telephone conversation. "Hicom"is the Nor will communication over the pub-in research and development was in-first private communication system to be lic networks of the future be limited to creased by 3.000 in 1984/85 to approxi-manufactured in accordance with the voice alone. With ISDN simultaneous mately 36.000 scientists, engineers, and world standard for ISDN (Integrated Ser-transmission of text, images, and data technicians. Expenditures for research vices Digital Network).
will be added. In the 90s, with wideband and development have now reached al-One goal of the projects now under switching systems and optical fibers ex-incst 90/o (previous year 80/0) of world-way is to f acilitate the use of office sys-tending to every subscriber, callers will r
wide sales. No European company tems at the individual workplace. The be able, on request, to appear on the ma-es a greater commitment in terms of display terminal" sitting across from" human and financial resources.
the people they are calling.
The German Federal Ministry for Re-Our EWSD technology is the corner-search and Technology again supported stone of wideband switching. The first selected research and development supplemental wideband assemblies have projects that ?'e of interest to the econo-already been developed. On the Berlin my as a whole. Over half of these funds network, we have set a new record for went to the KWU group for work on fu-optical fiber transmission, sending four ture miented problems in the energy wideband signals with a total of 1.4 bil-lion bits per second simultaneously on field At Siemens AG, government fund-i ing accounted for only 30/o of total re-just one single-mode fiber. At this rate, search and development expense.
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the contents of the Encyclopedia Britan-k nica could be transmitted in one and a V
half seconds.
To handle large volumes of data and t>
More flexibility for the factory full-motion video, the "information so-
- )
clety"of the future willrequ/re optical S--, _5
/
2 Production in the factory of the future fiber cables with increasingly higher h, must respond even taster and more flex-UN ibly to the needs of its customers Such transmiss/on capacities furits tele-communication networks. We are cce-a factory must be able to manufacture economically both extremely small pro-rently developing optical transmitt ns I
duction runs and senes-produced items which operate at a rate of f.4 bill /on bits per second, us/ng a s/ngle laser with a great number of variants. Flexibfe control of this kind will require a seam-d/ ode.
32
l l
l l
<l Gate turn-off thyristors - shown here in a testing device -are becomingin-l
{
creasingly importan t in electric power conversion and drive technology. Our laboratories are now working on new generations of MOS thyristors, which willoperate with a fraction of the energy required to control the con.
\\
ventionalbipolar types.
l ing program is presented on the screen i
~
. 'C in pictonal symbols. After each step in l
its evolution, the computer checks the j
4 correctness of the input. By this means, e
design and programming mistakes can j
be largely avoided.
.y
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intensive cooperation with universities 1
Despite our concentration on the key
/
elements in the Company's growth, we shall continue to pursue other important f-seminal topics. For example, in the field
~~
of power supply, one of our objectives is less flow of materials and information circuits. Even rv, this requires ultrafine to reduce the cost of producing silicon linking design, production, and shipping.
structures with dimensions of less than a for solar cells. In medical engineering.
Siemens will also be providing in-thousandth of a milkmeter. In Berlin. to-more powerful superconducting coils for creased flexibility for industrial robots.
gether with the Fraunhofer Society and our magnetic resonance tomographs al-We are working on sensors that will en-partners from industry. we are develop-iow the examination of the metabolic able them to "see,' " hear," and " feel.'
ing processes in X-ray lithography which processes in organs.
Our optical sensor system recognizes will permit us to make even smaller in setting the goals for our future re-the parts that the robot is to grip. The structures.
search and development efforts, we in-image processing is so efficient that the Software is the other factor. besides tend to pay even greater attention to the parts need not be in a specific order and microelectronics, that determines the requirements of our customers. Accord-may even touch one another.
power cf our systems. The soaring in-ingly, we are stepping up our participa-crease in the number of functions on the tion on international standardization Microelectron/cs and software design chips has made it necessary for sof t-committees. At the same time we are in-are our key technologies ware, too, to perform more and more ex-tensifying our cooperation with leading The basis for our computer, communi-tensive tasks. The most important objec-companies and institutions. Joint proj-cation, and automation systems is our tive for our software laboratories is to ects with universities are fundamental I
know-how in microelectronics and sof t-develop design tools that make the cre-not only to our semiconductor technol-ware. In microelectronics. the Mega ation of the programs faster,less expen-ogy, but also to factory automation and Project is designed to insure our mas-sive, and more reliable,in spite of their information technology systems. We tery of the semiconductor technology for growing complexity. One of these tools
- ntend to spend a total of DM 100 milhon I
the generation of the 4M-bit memory, permits programs to be designed in dia-on these projects over the next five particularly as the basis for future logic log on the display terminal. The develop-years.
l 33
~
Domestic Siemens companies Business growth based on new technologies and systems i
In the //scalyear ended September 30, delays in the construction of Atucha ll totaled DM 227 (previous year 221) mil-1985, the six consolidated companles and Angra 2 and 3, while work on the lion. In addition to the traditional areas, on wh/ch we are report /ng here cont /n-Trillo power plant in Spain is proceeding research focused on district heating sys-ued to expand the/r bus / ness act/v/t/es. according to schedule. In addition, KWU tems, coal gasification, flue gas catalyz-Newproducts, systems, and sery/ces is working on orders for 26 steam tur-ers, and such new fields of business as strengthened the/r compet/t/ve stance.
bine sets with a total output of 11,600 power lasers and biotechnologies.
Our //nancla/ company SFlIncreased MW, components for 20 more turbine Capitalinvestments amounted to DM
/ts hold /ngs. The other consol/ dated sets (6,200 MW), and eight gas turbine 112 (previous year 104) million. They compan/es are listed on pages 44 sets (1,000 MW). This maintained em-were used primarily for manufacturing and 45.
ployment in the plants, bat the work technology, data processing. laser tech-force in the engineering departments de-nology, and test facilities for the reactor Kraftwerk Un/ont clined slightly. On September 30,1985, service department. Parallel with the Sales / ump to over DM f f b////on KWU employed a total work force of sales increase, KWU's earnings also in fiscal 1984/85, sales of Kraftwerk 14,400 (previous year 14,600).
grew, totaling DM 280 (previous year Union AG (KWU), MUlheim on Ruhr, rose Research and development expenses 100) million; DM 100 million was again l
by 530/o to DM 11.4 (previous year 7.5) l billion, due to the completion and billing i
of three nuclear power plants: Gundrem-mingen C Grohnde, and Philippsburg 2.
i On the other hand, orders received, at DM 6.1 billion, remained below the previ-1 l
ous year's level of DM 6.7 billion since,
~ \\
for the fourth straight year, no new nu-clear power plant orders were placed
/
[ ],
I with KWU. Major orders included a i,
!j 300-MW steam turbine set for Greece and three 130-MW gas turbine sets for Pakistan and India.
. M*
The order backlog includes the Brok-i l
darf, Kalkar, Isar 2, Emsland, and Neckar w e.
2 nuclear power plants, where construe-tion is moving ahead, as well as Biblis C
%*C and SUd (Wyht), for which construction permits are still outstanding. Budget y
problems in Argentina and Brazil caused KWU is cont /nu/ng to develop /ts power t>
l plant technology, but it also has /ts eye on new areas of act/vity where It can Q
find an even greater variety of uses for i
/ts engineer /ng know-how. Th/s remote-
,4,^
control man /pulator, or/g/nally devel-oped for test /ng reactor elements, can be used to Inspect and do Inter /or work S
i on p/ pes of allkinds.
w 34
1 transferred to Siemens AG under the 1984/85. The previous year's volume of Tureduces losses by50%
profit-and-loss transfer agreement, and DM 1.4 billion included about DM 1.3 bil-Transformatoren Union AG (TU),
DM 180 million was allocated to retained lion for the Kalkar fast breeder nuclear Stuttgart,is one of the world's largest earnings.
power plant. Due to further billings for licensors in its field. In 1984/85 the No nuclear power plant will be billed Kalkar, sales climbed to DM 862 (previ-transformer market, which remained during the new fiscal year, and sales will ous year 489) million. On September 30, stagnant, was characterized by intense d: cline substantially. On the basis of a 1985, the company had 1,900 employ-competition and unsatisfactory prices.
praliminary contract, KWU will be the ees, as in the previous year. The deficit in Germany, the company recorded luder of a consortium responsible for grew to DM 6.9 (previous year 4.1) mil-healthy increases in sales volumes of th3 turnkey construction of the repro-lion. Major expenditures were required cast-resin and dry transformers, based 3
c:ssing plant in Wackersdorf. The com-for new areas of activity, and the re-on their high quality and envircnmental
' pmy expects further orders for power search and development budget was compatibility, in TU's traditional markets pimts in Germany-in the medium term increased by one-third to DM 34 mi' lion.
abroad, business continued to weaken, for nuclear power plants as well-since Intensive development work on high-particularly in power transformers. Major pow:r consumption continues to rise, temperature and sodium-cooled reac-orders from new customers, such as the and approximately 6,000 MW, the output fors and on nuclear process heat sys-People's Republic of China, mitigated of four or five nuclear power plants,is tems continued. Good progress was the decline, but the prices obtained were lacking for the projected base load.
also made on research reactor projects unsatisfactory.
Thsse plants are essential for a low-and the completion of contracts to con-In 1984/85, TU received orders for DM priced power supply, which would be se-struct solar energy plants. During the 425 (previous year 378) million, and in-cured by using hard coal for the medium current fiscal year Interatom will contin-creased its sales to DM 430 (previous load range and nuclear energy,lign;te, ue to expand its activities in new areas.
year 427) million. The number of employ-and run-of-river water for continuous Reaktor-Brennelement Union GmbH ees rose by 200 to 3,600, primarily due to operation. Outside Germany, there is (RBU). Hanau, in which KWU holds a the hiring of temporary employees to fill t
filres competition for the relatively few 60% interest, manufactures reactor fuel orders on schedulec power plant projects on the agenda. An elements,35% of which are exported, Capital expenditures, used mainly to indication of the new business sectors primarily to France, Sweden. Finland, increase productivity, amounted to DM that are opening up for KWU,is the re-and Switzerland. Capacity utilization 17 (previous year 10) million.
naming of Kiener Pyrolyse Gesellschaft reached 88% (previous year 82%). In Expanded business volume, organiza-for thermische Abfallverwertung mbH 1984/85, after the previous year's high of tional streamlining, and cost reductions (Kirner Pyrolysis Company for Thermal DM 278 million, orders received declined only partly compensated for the pres-
- Waste Recycling)into Kraftwerk Union-to DM 230 million and sales to DM 175 sure on income; nevertheless, the loss Umwelttechnik GmbH (Kraftwerk Union (previous year 253) million. However, a was reduced by 50% to DM 70 (previ-Environmental Technology Company).
vigorous increase is expected for ous year 140) million.
At the start of the new fiscal year, KWU 1985/86. The order backlog rose to DM The reorganization which had been ini-acquired the remaining 50% of NRG 449 (previous year 407) million. DM 8 tiated in 1984 continued during the year Nuklearrohr-GmbH, Duisburg. In addi-(previous year 13) million was spent to under review. Part of this program in-tion, KWU is expanding its services in-expand capacity, increase productivity, volves the shutdown and relocation of ternationally in order to turn to account and acquire fixed assets in order to com-the Stuttgart factory; the employees its engineering capabilities and its expe-ply with statutory permit requirements.
affected have been offered new jobs at rience in the planning and execution of RBU earned income after taxes of DM other plants.
turnkey projects.
6.4 f previous year 5.5) million. DM 5.5 Higher capacity utilization and intensi-Interatom GmbH. Bergisch Gladbach.
million was again distributed, and DM 0.9 fied innovation should improve TU's whose capital stock is held by KWU, million transferred to retained earnings.
competitiveness in fiscal 1985/86. A fur-booked orders of DM 258 million in A work force of over 900 was employed.
ther sales increase is anticipated.
35
=_
i Domestic Siemens companies l
OSRAM strengthens F"~
graphic software, hardware, and sys-i
/ts internationalbusiness tems engineering.
OSRAM GmbH, Berlin and Munich, Orders received rose by 140/o to DM the second largest lamp manufacturer in 702 million in 1984/85. Sales grew by Europe and the fourth largest in the
[
230/o to DM 660 million,750/o (previous world, increased its sales by 110/o to DM year 770/0) of which was attnbutable to 1.2 bilhon in 1984/85. This business ex-exports. The strongest growth again pansion was based primarily on newly came from Western Europe and the
]
j' developed energy-saving products, but U.S.A., but business in Japan, China, improved conditions in the international
-[
and Austraha was also brisk.
lamp markets also had a positive effect.
M~
The increasing versatihty of the Hell systems is making processing in the The share of exports reached 500/o (pre-vious year 490/0) of sales.
i graphics industry more and more eco-The new compact fluorescent lamps nomical, with simultaneous gains in qual-were well received by the market. Dulux a
ity. The company recorded particularly lamps in particular are making inroads Innovat/on andproduct qus/ity were strong growth rates with the Chroma-into traditional incandescent applica-the ma/n factors in the substant/a/
com system for electronic image and tions. New automotive headlamps de-growth rates recorded by OSRAMIn text processing and with Pressfax sys-signed especially for the U S.A. and Ja-both Europe and overseas countr/es.
tems for the transmission of entire i
pan were added to the product spec-
/ts Dulux //ne o/ compact //uorescents, newspaper pages. Scanners for color trum and the Metallogen HMI kne for TV Including the new EL /smps with screw-lithography, of which Hell is the largest and film studios, and stage lighting was type bases, has established a firm foot-supplier in the world market, also sold in enlarged.
holdin the market. These lamps con-large quantities.
j I
OSRAM's technical capability is also sume only one-///th as much power as The continued business growth re-reflected in an increasing number of Incandescent equ/valents. At the Augs-quired an expansion of capacities in all patents and licenses. For example, two burg plant, Du/ux /smps are manc/ac-sectors. Capital expenditures came to l
leading U S. tamp companies have furedin a highly automatedprocess.
DM 35.5 (previous year 25.2) million. 400 acquired the manufacturing concept for additional employees were hired, bring-the Dulux compact fluorescent lamp.
income of DM 39 (previous year 29) ing the total to 2,900.
On September 30,1985. OSR AM million, af ter special charges for pension income after taxes climbed to DM 18.1 GmbH had 7,400 (previous year 6,800) plans and other non-recurring expenses.
(previous year 17.0) million, of which DM employees,2.900 of them working in The transfer to retained earnings was in-9.1 (previous year 8.5) million was trans-1 Berkn. Average capacity utilization rose creased to DM 26 (previous year 13) mil-ferred to Siemens AG under the profit-l to 900/o (previous year 89 0/0). Expendi-kon. Net income available for distnbution and-loss transfer agreement. DM 9.0 j
tures for property, plant, and equipment, came to DM 13 (previous year 16) milhon.
(previous year 8.5) mdlion was allocated j
which were used for streamlining, ex-Forthe 1985/86 fiscal year OSRAM to general reserves. The company again l
pansion of capacities, and the manuf ac-expects the upward trend to continue, expects high growth rates in 1985/86 ture of new products, came to DM 110 with even stronger growth incentives (previous year 61) million. DM 28 milhon from international markets and newly de-Vacuumschmelze of which was spent in Berkn. An addition-veloped products.
boosts capits//nvestments al DM 70 milhon will be spent in 1985/86 Vacuumschmelze GmbH. Hanau, de-to expand the Berkn production facihties.
Rudolf Hell's market position velops, manufactures, and markets me-Thanks to higher sales and increased continues to expand talkc materials with special physical productivity, earnings continu.sd to im-Dr,Ing Rudolf Hell GmbH. Kiel,is an properties, mainly magaetic. In the field i
prove. OSRAM GmbH reco' 'ed a net internationalleader in the f: eld of repro-of superconductors, the company is at i
l 1
36
~
i i
l f
pany recorded a net income after taxes j
of DM 10.7 million, after breaking even in the previous year. DM 5.4 million of this i
amount was transferred to Siemens AG j
under the profit-and-loss transfer agree.
ment, and DM 5.3 million to retained i
C earnings.
t-For 1985/86, the company expects its
} ['
order volume to remain at approximately
/.,
the same level and sales to rise slightly.
l SFI/ncreases /ts holdings s
g The responsibilities of Siemens Finan-zierungsgesellschaft for Informations-technik mbH (SFI), Munich, include the management of an extensive portfolio of fixed-income secanties and notes. In ad-1 dition, SFl holds shares in several do-mestic and foreign companies. It now I
has an increased iruerest in Sietec i
Siemens-Systemtechnik und Portfolio e
GmbH & Co. KG. Berlin, to which, as of l
a October 1,1985, Siemens AG has trans-i the fore worldwide, and its high-quality Bus / ness at Rudo//He// GmbH aga/n ferred its equipment leased to custom-permanent magnets are market leaders grew vigorously. The newly developed ers. New financial companies were in Europe.
/syout des /gn station uses anInte-established in Belgium and Great Bntain.
i In fiscal 1984/85 the orders received grated v/deo camera to photograph SFI also finances specific capitalin-by the company rose by 140/o to DM 359 s// des, colorp/ctures, drawings, or vestments in Munich-Perlach for the million. Superconductors and permanent three-d/ mens /onal objects and convert Data Systems Division and the Corpo-magnets made a particularly strong con-them /nto dig /tal/ mage data, which are rate Research and Technology Division.
tnbution to this growth. Domestic orders then electron /cally processed to pro-The completed buildings and facilities increased by 110/o, international orders dsce the layout for an entire page.
have been leased to these Divisions of by 18 0/0. Dunng the year under review, Siemens AG.
sales grew by 190/o to DM 326 million, mainly for the superconductor facility ;n During the year under review SFl 390/o (previous year 400/0) of which was Hanau and to expand the production of earned af ter-tax income of DM 68 (previ-exported; 220/o (previous year 200/o) magnetic systems and subassemblies at ous year 50) million concerned supplies to Siemens com-the Berlin plant.
panies.
Research and development was con-Overall capacity utilization was good, centrated on superconductors. new ma-and a work force of about 2.500 (100 terials for permanent magnets, and more than in the previous year) was em-amorphous metals produced directly ployed as of September 30.1985. Capital from the melt by extremely quick cool-(
expenditures, at DM 35.7 million. were ing.
over twice as high as the DM 17.0 milkon After further special allocations to its In the previous year. They were used provision for pension plans. the com-
.i 37
Sicm:n csmpanics abroad Sales by geographic arh 1984/85
' Pu cent 3 Africa 4 ?
Asia and 81 e
Australia i
Latin America i North America
'10" '
Europe without 21;. ?
l
)]
Federal Republic of Germany Federal Republic 53 d of Germany i
-a "" ~
J Now dynamic thrust on the Total
- 100 i 4 '
European electrical market Compared with the prev /ous year, our Europe IsInvest/ng when the remaining shares were acquired, worldwide organ /zation bcoked more in new technolog/es the company has been wholly owned by orders, increased sales and, in most International orders amounted to DM Siemens. Under the name of Siemens countr/es, /mproved earn /ngs. In the 27.9 (previous year 24.7) billion, account-Energy and Automation,Inc.,it will U.S.A., we are In the process of re-ing for 540/o (previous year 510/0) of all henceforth also be handling our busi-ciructur/ng our act/v/t/es In the power orders received. International sales rose ness in the rapidly growing markets for eng/neer/ng //e/d, with automat /on as a by 100/o to DM 25.5 billion.
projects, systems, and automation.
pr/me concem. For the next fewyears Once again our most important mar-Siemens information Systems, Inc.
we ent/cipate steady, strong growt/r kets were the industrial countries, where has been active in the market for office In the Westem Industrialcountr/es and we cooked 680/o (previous year 650/0) automation since October 1,1985, while in the People's Repub//c of Ch/na, and of our international orders and achieved Siemens Communication Systems, Inc. is a /urther rer/ val o/ bus / ness In Latin 680/o (previous year 640/0) of our inter-concentrating on switching and commu-Amer /c;.
national sales. The increase in these per-nication technology for public networks.
centages is due primarily to the new dy-We expect our systems business to in 1985, the worldwide electrical and namic trend in Western Europe; custom-grow vigorously in both these markets.
elsctronics market rose by about 70/0, ers in this area are increasingly receptive in real terms, to DM 2,300 billion. The to our high-tech factory automation, of.
RevivalIn Lat/n America growth rate was thus somewhat lower fice, and communication systems and Orders received in the Latin American than in the last two years, due to slower our electronic components.
countries rose to DM 2.6 (previous year expansion in the U.S.A. and Japan. On 1.9) billion. Sales came to about DM 2.1 the other hand, there was increased de.
U.S.A.: Restructuring geared (previous year 2.2) billion, two-thirds of mand for new technologies in Europe's to growth markets which was attnbutable to value added lo-industrial countries. The situation in the Sales in the U.S.A. continued to rise, cally. Our business is concentrated on slictrical and electronics markets of the totaling DM 5.1 (previous year 4.4) bil-power engineering and telecommunica-developing countries improved slightly, lion. Our companies operating in the tion equipment. In a number of countries but the traditionally high growth rates of markets for electromedical equipment, we are also manufacturing to an increas-prior years have not yet been reached.
communication systems, and compo-ing extent for export. Thus, Latin Amer-The worldwide electrical and electron-nents achieved the anticipated growth ica provides an example of how our ex-ics business will continue to expand in rates. On the other hand, business at tensive technology transfer can also 1986. However, due to the slowdown in Siemens-Allis, Inc., which contributes contribute to industrial development in the U.S.A., which represents one-third of a good one-third of our U.S. sales, was other countries.
this market, we expect a growth rate of unsatisfactory; as a result of the strong only about 50/o. As regards the medium doliar this company had to compete Long-term plans In Ch/na term, the world market may well exceed against cheap imports in the generally The economic program of the Peo-DM 3,000 billion by 1990, based on 1985 stagnant market for conventional power ple's Republic of China aims at quadru-prices. This would correspond to an av-engineering equipment. We have initiat-pling the gross national product by the erage annual growth rate of 50/o to 6e.b ed an extensive restructuring program at year 2000, with special attention to ex-in real terms. Including sof tware, which Siemens-Allis. Manufacturing operations panding the country's industrial plant, is gaining in importance, this rate might have been moved from West Allis, WI, to power grid communication and trans-even approach 70/o per year. We intend a newly built factory at Bradenton, FL, portation systems, and health care ser-to achieve significantly higher growth and automation activities have been ex-vices. We are contnbuting to this effort over the medium term.
panded to form the key element in the with our entire product spectrum. Dunng product spectrum. During 1984/85 these the year under review we booked an or-mcasures led to substantial book losses.
der for the electrical outfitting of the Since the beginning of the new fiscal year, Baoshan ll hot-stnp rolling mill.
38
I i
l i
Other large orders included genera-The Eastern Bloc countries accounted exporting into the dollar area or compet-tors for the Lubuge hydroelectric power for a total of 4o/o (previous year 20/0) of ing against U.S. companies on the world plant, part of a high-voltage DC (HVDC) orders received and for 20/o (previous market. However, our dollar-based im-transmission line, the electrical outfitting yaar 30/0) of international sales.
ports became more expensive, and our of 300 freight locomotives, new EWSD U.S. companies had to ward off the exchanges for the telephone system, Extens/veInternat/onaloperating competition posed by cheap imports and computer tomographs. In the cur-performance reduces exchange r/sks into the American market. In the U.S.A.
rent fiscal year, we signed a master As in previous years, foreign exchange today, barely a third of our business is agreement with the State Economic rates had no significant effect on our based on imports. Furthermore, we keep Commission for long-term cooperation business, since roughly 500/o of our foreign exchange risks as low as possi-in the development of the national econ-international sales consists of goods and ble by a variety of hedging measures.
omy. In addition to our office in Beijing services generated abroad. In addition, we opened a second location in our German export activity is centered 108,000 employees In 127countr/es Shanghai.
on the projects and systems business, A total of 108,000 (previous year The oil, raw materials, and develop:ng which is scarcely affected by short-term 104,000) employees are working for us in countries contributed 290/o (previous exchange rate fluctuations. The high dol-127 countries at 32 local Siemens com-year 330/0) to orders received and 300/o lar exchange rate had a favorable effect panies, as well as at liaison offices, local (previous year 330/0) to sales.
on our competitive stance when we were sales offices and agencies. Approxi-
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I our holding in Tel-Plus Communications The annual repcq pubhshed t'y hj [ -
j Inc New York NY to 350 o and ac-S,emens Bete >hgungen AG deals exten-f
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. 9 Bradenton FL and Dr -Ing Rudolf Hon Approximately 50 00 of S,emens' inter-GmbH is expanding its New York f acil national business consists of goods Q. %, ':
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Telecommunications is a focal point for ties In Austna our cap \\tal spending to-and services that are generated out-li our future activities in the U S market cused on the components plant in Vri-side the Federal Republic of Germany.
Stecor Corporation. cne of our assoco-iach Appt oxt vately 90 C of our invest-A totalof 99localmanufacturing plants y _..V l[.],
f ated companies. is the world's largest ments abroad were made sn the Western help to give us a solid base in impor-G.' [ _
producer of optical fiber cables Our industnai countries s,nce the,ncentive tant electrical and electronics markess.
picture shows a section of the plant fy caprtat investment and other eco-The photo shows our motor and gen-jrd K in Hickory NC nom,c cond;tions >n most of Af nca and erator plant in Cornella near Barcelona.
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.g Orders from abroad especially fram Outlook abroad we have a presence in every im-Europe increased faster than domestic For the Current fiscal year We antic-portant market This posit;on enables us orders Demand was particular/v brisA ipate above-average growth rates in ot r to take adsantage of aH the opportunities j
for process and factory automation international business particularly in the for growth offered by our broad product
)
The largest cont /nuous-cas ting plant in West European industnal countnes but spectrum Belgium has been fully equipped with atso in Nortn Amenca and in the Peo-S:emens automation systems p:e s Repunhc of China In some Latin American countr'es we see the ti st i
Austna Beig:um France Great Botain s>qns of a business rev'va! Although the l
ItaN SAeden Switzerland Turkey ALs electncal and electronics market :n this 1
d traha Brari' Co.ombia and Mexico in reg;on was st h dechning by 7 2 : in 1983 addmon seseral h > cal Siemens compa
<t had r.sen to DM 59 buhon by 1985 with i
nies rubhsh the.r own annua l reports an average growth rate of 5 ?
and 3
Our < < operation witr S+ mens mm should rec.ne tu ther during the currert r
pan,es anJ agenoes atr sad and ou-t-calyear We r not expec t ans reaa
___ j bus ness ecEv are gmerned by onnc, n the OPEL c ountries as yet due to the
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ucts and seru es are aeneraLy gauged W.th c o' sy stematic a,y 1e.eqM to cast or markM F: C*
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Market positions further pg expanded "P
r%. (
m this section we are reporting on quite reach the orevious year s high lev-dishwashers Sizable export sales were kb ilE..,
three large associated companies in el due mainly to ' harper price competi-achieved in washing machines kitchen s.
r
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Germany: BSHG. Bergmann, and Sigri.
tion Af ter an anocanon of DM 20 (previ-ranges and floor-care equipment as
, j '. -e.'e-
) j
- ,@,.S.
.e-With a total of J1.800 (previous year ous year 20 5) milhon to retained earn-well as television sets and video record-s 31,000) employees, they recorded sales ings net income of DM 381 (previous ers of DM 5.6 (previous year S.4) billion in year 413) m@on was transferred to the f
fiscal 1984.
- In 1985 these companies controlhng company During it.e year under review. BSHG in-
- Ta succeeded in expanding their business Tbanks to its snnovative product pol-creased its sales to DM J billion. One-Q.j i,, }
volume considerably. Large capital icy BSHG was able to accelerate its third of the revenues now come from l ') ? '.
expenditures were made to increase sales growth considerably in fiscal 1985 countries outside the Federal Republic "O +,
p'
' y/. n.af
?
productivity and manufacture new helped by improved consumer demand of Germany Dishwashers were among i
products.
and a strong gain in internatsonal buse the products recording high growth ness in most product knes the previous rates. Thanks to a new control system,
?
BSHG steps up exports year s levels were exceeded. particularly even the finest glass and china can be
, l.y % f in the Federal Repubhc of Germany.
In microwave apphances dryers. and cleaned without risk of breakage.
g_.~
Bosch-Siemens Hausgerate GmbH
,,} _ g' c
(BSHG) Munich is the leading svppher
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of electrical home apphances in Europe 3
the company holds third place in terms
,j,p-j.,, _ y -
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of sales 3
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In 1984 BSHG increased its sales by 4 0 c to DM 3 bdhon Domestic business
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=
y was marked by consumer restraint and 4
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fiercer competition while exports rose s,y;'
. ~'
by 7 0 e accounting for 330 o Iprevious
, s:Mg
-df. g:, <.%
year 32 0 c) of sales g~**
~
1 j
py,7 j, ifl The positive business trend extended I
over almost the whole product spec-Qj 4
trum Particularly high growth rates were ki y gr 7
a posted for dishwashers washing ma-hhh
. }_
- -Q
'/
chin 3s and dryers microwave apph-anc es and video cassette recorders
'- ([(f;&
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More than 7500 of BSHG s products are k
less than fNe years old
~]
The company invested DM 106 (preve Wt, ous year t 101 mdhon,n property plant
((
and equipment mainly ni facihties to I.[
I.
'j@!
}k,
y!U manuf acture new apphances and in-s crease productrvity On December 31 y, N FgM '
r
'984 BSHG had 13 0001 previous year g+
3 12 7003 emp)ovees Earnings did not ne aces,
- m www F p r gi g4a qf{
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The company again operated at a ployees. Again, additional training posi-were stepped up by about 700/o, to DM profit in fiscal 1985. However, earnings in tions were created. At year-end the 69 million.
the home appliance industry continue to Bergmann companies emp yed a work The sales growth resulted in improved be affected by intense compet. tion, force of 12,300 (previous year 11,900).
earnings. Net income, however, was which is increasingly being conducted DM 7.9 million was again transferred adversely affected by measures to on the basis of prices and terms of sale.
to general reserves. The net income strengthen Sigri Carbon Corp., which, BSHG managed tc compensate for this available for distribution, amounting to while still operating at a loss, is essential c
pressure on earnings both by improving DM 11.2 (previous year 9.8) million, was for Sigri's U.S. market development. Net capacity utilization at its Berlin, Dillingen, used to pay an increased dividend of income for the year, which dropped to Giengen, and Traunreut plants and by in-DM 8 per share, compared with DM 7 in DM 2.0 (previous year 11.1) mi: lion, was creasing productivity and reducing costs the previous year.
transferred in full to retained earnings, in all sectors.
During the new fiscal year the positive as against DM 3.1 million in the previous BSHG's companies in Germany and trend continued. Demand continued year.
abroad also reported vigorous growth.
steady for products in state-of-the-art Despite the fact that the revivalin the Both Neff GmbH and the foreign com-technology. The advanced integration in steel industry has already started to sub-panies continued to expand their sales in communication technology and the in-side again, the Sigri companies suc-1985. Bosch y Siemens Electrodom6s-creasing significance of environmental ceeded in raising sales by 90/o during ticos, Madrid, and Siemens Domestic protection are having a positive effect.
1985. Business in the U.S.A. contributed Apphances, London, were added to the The Bergmann companies recorded significantly to this expansion. Electro-BSHG companies outside Germany, higher growth rates than in 1984 for both graphite specialties,in particular elec-orders received and sales.
trodes for the steelindustry, will con-Bergmann records in October 1985 a new plant to manu-tinue to be the group's most important h/phergrowth rates facture wiring harnesses for the automo-products in the coming years, although Bergmann-Electncitsts-Werke AG, tive industry was inaugurated in Eisen-the current 600/0 share of electrodes in Berlin, the holding company, owns more dorf (Lower Bavaria), where up to 300 worldwide sales will decline. In 1985, than 20 consolidated companies in the people will eventually be employed.
Sigri's first carbon fiber plant went into field of electrical and electronic engi-cperation; it has an annual capacity of neering. In 1984, orders received by the S/grl's cap /tal expenditures up 700/0 100 tons.
Bergmann group of companies rose by The fields of activity of Sigri GmbH, in order to underline its increasing 640 to DM 1.4 billion. Sales, also at DM Meitingen, and its companies comprise commitment to new materials, the cor-1.4 billion, reached the previous year's carbon and graphite products for the porate name was changed from Sigri level. All the companies specializing in production of electric steel, aluminum.
Elektrographit GmbH to Sigri GmbH in communication, power engheering, pro-and chlorine; blast furnace linings; February 1985.
cess automation, and instrumentation chemical apparatus; and new materials and control systems contributed to the made of carbon, graphite, silicon car-increase in orders. The share of exports bide, and sintered metals.
grew to 170/o (previous year 140/0), due in 1934, orders recebed by the Sigri in part to one large-scale order.
companies rose by 190/o to DM 1.3 bil-m..
The Bergmann companies' total capi-lion, and sales by 130/o to DM 1.2 billion.
iNO.M tal expenditures came to DM 90 (previ-International business again accounted M
ous year 88) milhon; more than one-third for 810/o of total sales.
g Q %
of this amount was spent in Berlin. The The number of employees grew by jg gratifying business trend improved ca-200 to 6.600. Investments in property, y [4]1.
pacity utilization at the plants and made plant, and equipment, primarily for pro-77 it possible to hire about 300 new em-duction streamlirsing and new products.
'i
- f,Q$
43
Siemens companies and major associated companies Septernber 30,1985 Siemens AG compnses the key operating Siemens companies are those domestic and in its domestic and foreign associated ecm-sectors. The power plant. transformer, and foreign companies in which Siemens AG is panies. Siemens AG holds a direct or indir ect lamp activities are conducted by Siemens directly or indirectly entitled to cast a majonty interest of 500/o or less. These companies are companies.
of the votes. These companies are,in pnn-not consolidated. The major associt'ed com-ciple, included in the worldwide financial sta-panics are hsted in Part ill on page 46.
tements (see Part I of the table below). Com-panies not included in the worldwide financial statements are hsted in Part 11 (see also the notes to.he worldwide consolidated financial statements. pages 53 to 59).
Capitalin thousands of DM Siemens or of other currencies share (0/0)
- 1. Consolidated companies
- 1. Domestic Kraftwerk Union AG. Mulheim on Ruhr*
622,000 100 Interatom GmbH Bergisch Gladbach" 30.000 100 Internationale Natnum-Brutreaktor-Bau GmbH,3ergisch Gladbach 100 70 Multi-Arc GmbH, Bergisch Gladbach 102 51 Kiener Pyrolyse Gesellschaft fur thermische Abfallverwertung mbH, Stuttgart" 3.000 80 Reaktor-Brennelement Union GmbH. Hanau 30.750 60 Alkem GmbH, Hanau'
- 3.000 60 Pohgrat - Nuclear GmbH. Munich * "
500 51 Siemens Finanzierungsgesellschaft fur Informationstechnik mbH. Munich 365,000 100 Sietec Siemens-Systemtechnik und Portfolio GmbH & Co. KG, Berhn 205.500 100 Computer Gesellschaft Konstanz mbH, Constance
- 20.000 100
}
Risicom Ruckversicherung Aktiengesellschaft, Berhn 5.000 100 Siemens Portfolio GmbH & Co. KG GrQnwald. Grunwald 5.000 100 Siemens Portfoho Beteikgungs-GmbH, Berhn 1.000 100 GVD Gesekchaft fur die Vermietung von Dater verarbeitungsanlagen mbH, Munich 500 100 Sietec Siemens-Systemtechnik und Portfoho Beteihgungs-GmbH, Berhn 100 100 OSRAM GmbH. Berlin and Munich 147.000 100 Elektro-Rohren-Gesellschaft mbH & Co. KG. Gottingen 3.000 100 Elektro-Rohren-Gesellschaf t mbH. Gottingen 50 100 Vogesa Gluhlampenfabnk GmbH, Coburg 2.000 100 Hejalux Lampen GmbH, Munich' 500 100 Radium E!ektrizitats-Gesellschaft mbH, Wipperfurth 12.500 67 Dr. 'ng Rudolf Hell GmbH. Kiel' 50.000 100 RXS Schrumpf technik-Garnituren GmbH. Hagen*
20.000 100 Vacuumschmelze GmbH. Hanau*
18,000 100 VCB Venture Capital Beteibgungsgesellschaft mbH Munich
- 10.000 100 Heimann GmbH. Wiesbaden*
8.000 100 inak GmbH Industnelle Anlagen fur Krankenhauser. Erlangen*
7.000 100 Plessing Dental Handel GmbH. Stuttgart" 4.000 100 KKW Kulmbacher Khmagerate-Werk GmbH, Kulmbach*
6.000 100 Manutec Gesellschaft fur Autcmatisierungs-und Handhabungssysteme mbH, F0rth*
6.000 100 WK Versicherungsvermittlungs-und Verkehrskontor GmbH Munich
- 50 100 Transformatoren Union AG. Stuttgart'*
70.000 75 1.T.-Transformatoren Beteihgungs-GmbH. Stuttgart*
- 15.000 87 Volta-Werke Elektncitats-Gesellschaft mbH. Berhn" 5.000 75 Leitungswerk Friesoythe GmbH & Co. KG, Fnesoythe 6.500 70 Leitungswerk Fnesoythe GmbH. Friesoythe 50 70 Siecor Gesellschaft for Lichtwellenleiter mbH & Co KG. Neustadt near Coburg 20.000 50 Siecor Gesellschaft fur Lichtwellenleiter mbH. Munich 100 50
- 2. International 2.1. Subsidianes o. diemens AG Siemens Beteihgungen AG. Zunch Sfr 422.500 100 Siemens S A., Saint Gilles (Brussels)
Bfr 1.300.000 99 Siemens A/S, Batterup (Copenhagen)
Okr 75.000 100 Siemens Osakeyhtio. Helsinki Fmk 36.000 100 Siemens S A. St Denis (Pans)
FF 45 000 100 Siemens Ltd. Sunbury-on-Thames (London) t' 3.000 100 Siemens Ltd. Dubkn Irf 180 100 Siemens Elettra S p A, M:lan Lit 20.000.000 100 44
Capitalin thousands of DM Siemens or of other currencies share (%)
Siemens Nederland N.V., The Hague FI 40.000 100 Siemens A/S. Oslo Nkr 85,000 100 Siemens AG Osterreich, Vienna S
1.032,820 56 Siemens-Elema AB.Solna Skr 80.000 100 Siemens-Albis AG, Zunch Sfr 60.000 78 Siemens S A.. Madrid Ptas 1,800,000 93 Simko Tecaret ve Sanayi A.S., Istanbul TL.
1.200.000 51 Etmas-Elektnk Tesisat ye Muhendislik A.S.,1stanbul TL.
180.000 51 Siemens Ltd., Johannesburg Rd 13,450 52 Siemens S. A., Caracas Bs 77,300 M0 Siement Ltd., Richmond (Melbourne)
$A 5,734
- A 19 other manufactunng and sales companies in Austria, Finland, Great Bnta n, the Netherlands, Norway, Sweden. Switzerland South Africa, and Australia Siemens Europa-Finanz AG, Luxembourg Sfr 20,000 100 Merkur-Finanz AG,Zunch Sfr 20,000 100 Siemens Western Finance N.V., Willemstad, Curacao U.S.$
10.000 100 4 other financial companies in the U.S A.
Siemens Capital Corporation, New York, NY U S.$
670.516 100 Siemens Communication Systems. Inc., Iselin, NJ U S.$
189.107 100 Siemens-Allis,Inc., Atlanta, GA U.S.$
111,852 100 Siemens Medical Systems, Inc., Iselin, NJ U S.$
105.132 100 Siemens Components, Inc., Isehn, NJ U.S $
58.065 100 24 other manufacturing and sales companies in Austria, the Netherlands, Barbados, the U S A., and Malaysia 2 other financial companies in the U.S A.
Siemens Overseas investments Ltd., Mississauga (Toronto)
Can$
6.000 100 Siemens Electnc Ltd., Pointe Claire (Montreal)
Can$
3.150 100 Siemens A E., Elektrotechnische Projekte und Erzeugnisse, Athens Dr 1.649.000 100 Siemens Tele Industne A.E., Salonika Dr 450,000 70 Eviop-Tempo A E. Electrical Equipment Manufacturers. Vassilikori Dr 123.000 67 Siemens Data S p A, Milan Lit 9.000.000 51 Siemens S A R L., Lisbon Esc 600.000 100 Turk Siemens Kablo ve Elektrik Sanayii A.S., Mudanya TL.
1.400,000 55 Siemens S A, Buenos Aires Aus 218 100 Equitel S A., Buenos Aires Aus 434 100 Siemens S A., Sao Paulo Cr$ 376,888.948 100 Siemens S.A, Bogoth Col $
68.000 70 Siemens S A de C.V., Mexico City Mex$
800,000 100 Siemens inJia Ltd., Bombay irs 108.000 51 Siemens K.K., Tokyo Yen 600.000 83 Siemens Components Sdn. Bhd., Malacca (Malaysia)
MS 4.000 100 Siemens Pakistan Engineering Co Ltd-, Karachi prs 37.268 64 Siemens Components Pnvate Ltd., Singapore S$
800 100 11 other manufactunng and sales companies in Belgium Denmark, France, Greece, Portugal, Sweden, Brazil. Japan, and Malaysia Siemens Financieringsmaatschappij NV., The Hague FI 2.000 100 1 other financial company in Belgium 2.2. Subsidianes of Siemens Finanzierungsgesclischaft fur informationstechnik mbH Siemens Coordination Center S A., Brussels Bfr 2.000.000 100 Sunbury investment Company Ltd., London f
50,000 100 2.3 Subsidianes of OSRAM GmbH N V. OSRAM S. A, Zaventem (Brussels)
Bfr 30.000 98 OSRAM A/S. Tastrup (Copenhagen)
Dkr 2.000 60 OSRAM S A.R L., Molsheim FF 22.000 100 Wotan Lamps Ltd London f
500 100 OSRAM Societ4 Riunite OSR AM Edison-Clenci S p.A., Milan Lit 11,000.000 100 OSRAM Osterreichische Gluhlampenfabnk Ges m.b H., Vienna S
20,000 100 OSRAM Empresa de Aparelhagem Electnca Lda., Lisbon Esc 50.000 100 AB OSRAM. Stockholm Skr 4.000 100 OSRAM AG.Winterthur Sfr 1,000 100 OSRAM S A, Madnd Ptas 420.000 90 OSRAM Argentina S A C 1., Buenos Aires Aus 500 100 OSRAM do Brasil-Companhia de Lampadas Eletncas S A, Osasco Cr$
26,220.000 100 OSRAM S A. de C.V., Naucalpsn (Mexico)
Mex$
55 000 100 5 other manufactunng and sales companies in Italy. Brazil. Canada, and the U.S A.
2.4 Subsidiary of Transformatoren Union AG Transformadores Uniao Ltda. (TUSA), Jundiai (Sao Paulo)
Cr$ 112.524.235 84 2 5. Subsidiary of Kraftwerk Union AG Utihty Power Corporation, Palmetto. FL US$
79.030 93 45
Capitalin thousands of DM Siemens or of other currencies share (0/o)
- 11. Nonconsolidated companies
- 1. Domestic Companies with a low business volume and inactive companies 700 100 Adam Schneider GmbH, Berlin 500 100 Klangfilm GmbH. Berlin and Karlsruhe GHT Gesellschaft fur Hochtemperaturreaktor-Technik mbH, Bergisch Gladbach" 200 100 Asko Grundstucksverwaltungs-Gesellschaft mbH, Berlin" 100 100 50 100 EC Electncal-Consulting GmbH. Munich Indass GmbH fur Vermittlung von Versicherungen, Berlin" 50 100 50 100 Pacesetter Systems GmbH, Hamburg Patent Treuhand-Gesellschaft f0r elektnsche G!Ohlampen mbH. Munich'
- 50 100 50 60 RBU-Lagergesellschaft mbH, Karlstein KVG Kenntnisverwertungsgesellschaft Schnelle Brutreaktoren mbH, Bergisch Gladbach 150 51 Retirement and other employee benefit corporations 50 100 Siemens-AhersfUrsorge GmbH, Berlin Kraftwerk Union-Altersversorgung GmbH MQlheim on Ruhr 50 100 50 100 Interatom-Altersversorgung GmbH, Bergisch Gladbach 50 100 OSRAM Unterstutzungseinnchtung GmbH, Berlin 50 100 Hell-Altersforsorge GmbH, Kiel Vacuumschmelze Unterstutzungseinrichtung GmbH, Hanau 50 100 50 100 Heimann-Altersversorgung GmbH. Wiesbaden Transformatoren Union-Altersversorgung GmbH Stuttgart 50 75 50 75 Volta-F0rsorge GmbH, Berlin 50 70 Leitangswerk Friesoythe Altersversorgung GmbH, Fnesoythe Radium Unterstutzungskasse GmbH, Wipperfurth 50 67 Reaktor-Brennelement Union-Altersversorgung GmbH, Hanau 50 60 Siemens-Wohnungsgesellschaft mbH, Berlin
- 6,500 100 Berliner Vermogensverwaltung GmbH. Berlin
- 1,000 100 Other compantes not under the uniform direction of Siemens AG 10.000 100 Siemens-Electrogerste GmbH, Munich Plania Beteiligungsgesellschaft mbH, Munich * "
40.500 67 Autostrahler GmbH. Herbrechtingen 200 51
- 2. International 134 companies with a low business volume and inactive companies, one employee benefit corporation, and fnur companies which do not operate under the uniform direction of Siemens AG 111. Major associated companies
- 1. Domestic Messerschmitt-Bolkow-Blohm GmbH, Ottobrunn 600.000 6
held by Fides Industrie-Beteiligungsgesellschaft mbH, Munich Bosch Siemens Hausgerste GmbH, Munich *"
240,000 50 Sigri GmbH, Meitingen 115.000 33 held by Plania Beteiligungsgesellschaft mbH, Munich Blohm + Voss AG, Hamburg 90,000 13 Bergmann-Elektricitats-Werke AG. Berlin 70,000 37 Dyckerhoff & Widmann AG. Munich.
57.000 13 held by VBB Gesellschaft f r die Verwaltung von Bau-Beteiligungen mbH, Munich TELA Versicherung Aktiengesellschaft, Berlin and Munich 24,000 50 Norddeutsche Seekabelwerke AG. Nordenham 15.000 50 Kabeltrommel GmbH & Co. KG, Cologne 10,000 21 NRG Nuklearrohr-GmbH. Duisburg 8,000 50 Hospitalia International GmbH. Frankfurt * "
5.000 50
- 2. International VIEM-MetalWorks, S A, Athens Dr 561,171 10 Egyptian German Electrical Manufactunng Co. SAE., EGEMAC, Cairo EL.
5.500 31 Interruptores de Msxico S. A.. Querstaro (Mexico)
Mex$
300.000 48 Advanced Micro Devices, Inc, Sunnyvale, CA US$
139.788 15 Tel-Plus Communications, Inc, New York. NY U.S.$
228,907 35 Siecor Corporation, Hickory, NC U.S $
57.800 50 Cable Corporation of India Ltd, Bombay irs 48,000 20 Iranian Telecommunication Manufactunng Company, Shir az Ris 1,400.000 20 Gold Star Tele-Electnc Co, Ltd., Seoul W
7,200.000 25 National & German Electncal and Electronic Services Company, Kuwait KO.
200 49 Telephone Industnes of Pakistan Ltd. Hanpur prs 73,148 17 Arabia Electnc Ltd, Jeddah SRs 3,000 30
- Profit-and-loss transfer agreements hwe been
- Profit-and-loss transfer agreements have been
- Profit and-loss transfer agreerrents exist wrtn concluded with these companses by Siemens AG concluded with these companies by their respec-these companes through Companies formed twe parent company under the German Civil Code 46
Sie' mens AG-Statement of income for the period October 1,1984 to September 30,1985 r.
1984/85 1983/84 DM 000 Net sales 29,044.191,388 25,111,291 Change in inventones of finished products and work in process, in the cost of unbilled contracts, and in equipment leased to customers 501.596.331 743.816 29.545.787,719 25.855.107 Company-produced additions to plant and equipment 514.215.279 352.692 Total operating performance 30.060,002.998 26.207.799 Less-cost of matenals, supplies, and merchandise 11.944,162.388 9.906,304 Gross resuit from operat+cns 18.115.840.610 16,301.435 Income under profit-and-loss transfer agreements 144.538.022 147,339 income from investment in shares of subsidianes and associated companies 163,019.323 123,520 Income from other investments 13.902 97 Other interest and similar income 1,866,732,597 1.557.080 Gains on disposal of fixed assets and investments 59.837,994 40,815 Credit to income from elimination of provisions 132,840.337 89.700 Credit to income from elimination of special reserves 51,883.461 26,996 Miscellaneous income 1,952.092.070 1,227.240 including extraordinary income
. 31,159,349
[ 16.433]
4,370.957.706 3.212.787 22,486.798.316 19.514.282 Wages and salanes 9.525.007,639 8.698.107 Statutory social welfare contnbutionr.
1,333.886.629 1,199,328 Expense related to pension plans arti other employee benefits 1,549,775,597 1.342,762 Depreciation on property, plant, and equipment 1.281,818.722 1.023.237 Wntedown on investments 30.477.767 7.008 Value adjustment on, and losses from tne disposal of, current assets (except equipment leased to customers and inventones) 600,109.451 285.723 Losses on disposal of fixed assets and investments 10,938.539 17.679 Interest and similar expenses 994.955.489 627.264 Taxes charged to subsidiaries deemed integrated charged to on income, for tax purposes Siemens AG net assets. and real property
- 1.566,500,130 428.400.909 1,138.099.221 821,758 other 20.926.216 20,926,216 4,441 1,159,025.437 826.199 Losses absorbed under profit-and-loss transfer agreements 63,738.896 112,888 Transfers to special reserves 19.443.642 5.331 Miscellaneous expenses 4.773.036.264 4.565.108 21,342,214,072 18.710.634 Net income for the fiscal year 1.144.584.244 803.648 Balance brought forward from previous year 231.520 1,432 Net income transferred to retained earnings 572.000.000 363.000 Net incomo available for distribution 572.815.764 442.080 Pension payments to be reported under $159. German Corporation Act amounted to DM 547.2 million. Pension payments dunng the next five fiscal years (expressed in per cent of the 1984/85 amount) are expected to be: 1985/86: % 0/o; 1986/87: 810/o: 1987/88. 840/o; 1988/89: 870/o; 1989/90: 920/o.
- After deduction of DM 37.609.114 (previous year DM 25 971 mdhon)in corporate income tax credits relating to dmdends paid by companies in the Federal Repubbe of Germany SiemenS AktiengeSellSchaft The Managing Board According to our audit, conducted with all due professional diligence. the accounting records, the financial statements, and the report to share-holders comply with the requirements set forth in the statute and in the Company's Articles of Association.
Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprufungsgesellschaft Dr Clemm Dr. Schu!:
Berlin and Frankfurt on Main Wirtschaftsprufer Wirtschaftsprufer Munich, January 24,1986 (independent auditors) 47
=u
.m Siemens,AG - Balance sheet g
as of September 30,1985 om.,
SR Assets 9/30/1984 Ad6tions Reclassi-Retire-Depreci-9/30/1985 9/30/1984 J
fications ments ation 7 ?
j
- 1. Fired assets and investnlents DM 000
-i Property, plant, equipment, and intangibles Q
Land and equivalent nghts tc real property with office, factory, and other buildings 1,179.314.464 315.266.393
+ 32.039.224 2.622.669 88.092,656 1,435.904,756 1.179.314 with residential buildings 172.577 22,384 9.384 140.809 173 without buildings 23.621,382 52.546.332
- 5.745.096 38.841 9.492 70.374.285 23.621 g
Buildings on land not owned 9.031.005 2.458.658 50.320 18.581 3.100.391 8.320.461 9.031 P! ant machinery and facilities 583.863.900 382.279,287
+ 106.246.736 11.100.216 332.204.20E 729.085.499 583.864
[
Plant and office equipment 708.725.006 1.098.509.123
+ 38.007.957 6.539,323 786.872.406 1051,830.357 708.725 5
Construction in progress and advances for fixed assets 179,603.175 537.777.534
- 170.476,117 1.561.128 71,530.275 473.813.189 179.603 g
Franchises, operatir:g licenses, industnal property and simi.ar nghts. and licenses under such rights 1
1
[1.00]
g 2,684.331,510 2.388.837.327 21,880.758 1.281,818.722 3.769.469.357 2.684.331 g
investments investment in subsidianes and associated companies 3.573.858.233 969.915.629 85.757.748 30.477,767 4.427.538.347 3.573.858 a
Loans grantad for contractual terms q
of 4 years or more 2.927.901 480.627 1.458,759 1.949.769 2.928 m
secured by mortgages 1.499,076
[
1.820]
-n 3.576.786.134 970.396.256 87,216.507 30.477,767 4.429,488.116 3.576,786
-2 6.261,117.644 3.359.233,583 109.097.265 1.312.296.489 8,198.957,473 6.261.117
__=
- 11. Current assets 6m Equipment leased to customers 564.275.050 584,494 inventories Materials and supplies 954.821.253 758.954 M
Work in process 2,023.366.233 1.653.422 m
Finished products and merchandise 2.021.864.832 1,650.545
-Q Cost of unbilled contracts 3.171,128.024 3.244.059 8,171,180.342 7.306.980 Less-advances received from customers
-4.993.319.733
-4.996.833 3.177.860.609 2.310,147 y
Receivables and miscellaneous assets Advances to suppliers 249.978,657 217.649 Accounts receivable 4.116,150 919 3.609.429 due after one year 352.306.528
[ 389.238]
=
Receivables from subsidianes 8.843.227.543 7.879.155 Loans subject to $89. German Corporation Act 26.078.781 25,521 Y
Miscellaneous assets 1.512.415.075 1.255.786 14.747.850.975 12.987.540 Treasury stock (par value 6.953,250) 35.878.770 4,511 Marketable securttles and notes Shares of stock 558,915.884 445.182 M
Marketable fixed-income secunties 5.300.355.233 5.871.751 M
Unlisted loan notes 3.089.593.743 3.414.881 M
8.948 864.860 9,731.814 Liquid funds Notes receivable (including 9.813.176 rediscountable at the Bundesbank) 18.605.401 8.857 Y
Checks 16.173.176 15.072
-M Cash on hand. deposits at the Bundesbank and in postal giro accounts 21.449.477 29.360 Cash in banks 387,394.742 511.489 b
443,622.7 %
564.778 27.918.353.060 26.183.284 M
lil. Prepa.d expenses 5.681.594 3.616
- Q-i 36.122.972127 32.448 017 48
Shareholders' equity and liabilities J
9/30/1985 9/30/1984
- 1. Capital stock DM 000 Common stock (total number of votes 46.811.013) 2.340,550.650 2,166.785 Preferred stock (totalnumber of votes 923,634*)
46.181.700 43E16 2.386,732.350 2,210.401 Potential Capital 118.668.900
[ 125.000]
Authorized Capital 47.000,000
[ 217.000]
- 11. General reserves Statutory reserve 3.125.425.741 2.897,370 Capitalin excess of par value contnbuted during the fiscal year 519.121.747 228.056 3.644.547,488 3.125.426 Reserve for treasury stock 4.511,130 27,920 Transfer from retained earnings 31.367.640
- 23.409 35,878,770 4,511 Retained earnings 3,618.271,300 3.231.862 Transfer from net income for the fiscal year 572.000.000 363.000 Transfer to reserve for treasury stock
- 31,367.640 23.409 4.158,903.660 3.618.271 7.839.323.918 6.748.208 Shareholders' equity 10.226.062,268 8,958.609 lil. Special reserves Reserve pursuant to $1, Tax Act on LDCs 92,744.617 104.294 Reserve pursuant to $74. Income Tax Regulations 45.468.000 85,802 Reserve pursuant to $6b. Income Tax Act 18,948.642 3,721 Reserve pursuant to Section 35, income Tax Directives 4.216,000 Reserve pursuant to $1, Foreign Investment Act 539.247 539 161,916.506 194,356 IV. Provisions Provision for pension plans 6.997,500.000 6,106.800 Other provisions 5.520.557.138 5.377.511 12,518.057,138 11,484.311 V. Liabilities Borrowings with contractual terms of 4 years or more Bank borrowings 246.970.000 262.646 1
due within less than 4 years 196 200.000
[ 210,876]
with contractual terms of less than 4 years y
Bank borrowings 74,154.394 54,779 Other liabilities Advances received from customers 527,171,690 734.630
~
Accounts payable 1.791.658.536 1,493.225 Liabilities to subsidianes 8.105.678.379 7.208.927 Miscellaneous liabilities 1.821.622,928 1.538.786 with contractual terms of 4 years or more 27.731,380
[ 38 397) secured by mortgages:
445.618
[
456]
due within less than 4 years: 25.025.804
[ 31,977]
12.246.131.533 10.975.568 1
12.567.255.927 11.292.993 1
VI. Deferred income 76.864.524 75.668 Vll. Net income available for distribution 572.815.764 442.080 y;
Contingent liabilities on notes 132.042.690
[ 156.683]
to subsidianes 6.295.063
[ 10.258]
Guaranties 7,777,000
[ 13.935]
to subsidianes
[
1.672]
N Warranties 1.779 408.000
[1.958.6S0) to subsidianes 302.203.000
[ 307.732l Collateral for liabilities of others 1.928.037
[
979]
l 36.122.972.127 32.448.017
.kij in the instances set forth in 23 of the Articles of Association, the preferred stock is entitled to six votes per share 49
Worldwide consolidated balance sheet i
as of September 30,1985 <,ntheus.neso,0 )
k
's; E
Asssts b2 9/30/1984 Additions Reclassi-Retire-Depreci-9/30/1985 9/30/1984 iP fications ments ation ap I, Fixed assets and investments 5
Property, plant, equipment, and intangibles
[
Land and equivalent rights to real property with office, factory, and other buildings 3.081.636 465,641
+ 63,572 8,748 184.467 3.417.634 3.081,636
[
with residenttal buildings 14.735 1.423
+ 2.387 409 91 18,045 14,735 g
without buildings 98,855 54.595
- 8.697 1,231 1,118 142.404 98.855 Buildings on land not owned 53.269 20.075
+ 5.391 1,181 15.018 62.536 53.269 y
Plant machinery and facilities 1,487.610 684.190
+ 176.643 42.795 599,226 1,706.422 1,487.610 L
Plant and office equipment 1.366,412 1,675,390
+ 91,003 37,935 1.215,621 1.879.249 1,366,412 7
Construction in progress and advances for fixed asssts 429.790 800.414
- 330.299 12,636 94.910 792.359 429,790 f
Franchises, operating licenses, industnal property and g
similar rights, and licenses under such rights
[1.00]
[1.00]
[1.00]
t 6.532,307 3.701.728 104,935 2,110.451 8,018.649 6,532,307 Investments
- 7 Investment in nonconsolidated subsidiaries and associated companies 796.473 448.056 104.088 7,311 1,133,130 7 %,473 Other investment secunties 8,237 146 146 8,237 8.237
[~
Loans granted for contractual terms of 4 years or more 22,946 12.117 6.271 5.439 23,353 22.946 secured by mortgages 7,733
[
8.499]
[l 827.656 460.319 110,505 12.750 1,164,720 827.656 7,359.% 3 4,162.047 215,440 2.123.201 9.183.369 7.359,% 3 Q' y 386.311 284,407 Adjustment resulting from consolidation 9.569,680 7.644.370 11, Current assets i
Equipment leased to customers 1,01 1,374 1,027.034 Inventories Materials and supplies 1.728.335 1.663.023 Work in process 3.823,747 3,278,749 j
Finished products and merchandise 3.624,052 3,161,072
!=
Cost of unbilled contracts 8.586,405 11.754.318 17,762,539 19.857,162 c
!~
Less-advances received from customers
-11,065,994
-14.001,286 6.696.545 5,855,876 Receivables and miscellaneous assets
!E Advances to suppliers 3,610.360 3,984,106 Less-advances received from customers
- 3.327,455
-3.292 273 282,905 691,833 9.084,884 8,642.927 Accounts recewable y
due after one year 1.051.934
[1.058,128]
7-Receivables from nonconsolidated subsidiaries 369,341 239,102 Loans within the meaning of $89, German Corporation Act 39.575 39.595 4
Miscellaneous assets 4,480,075 3,534.618 k
14.256,780 13,148.075 Treasury stock (par value 6,953) 35.879 4.511 i
Marketable securttles and notes Shares of stock 807,215 610,597 Marketable fixed-income secunties 11,844.449 11.457,971 j
l, Unlisted loan notes 6.672,720 6.127.443 3
19.324.384 18,196.011 lD Uquid funds
-K Notes receivable (including 9.813 rediscountable at the Bundesbank) 71,664 66.242 T
Checks 46 207 41.933 Cash on hand, deposits at the Bundesbank and in postal giro accounts 38.666 50.014 21 Cash in banks 1.059.251 1.131,918 b
1.215.788 1,290.107 f
42.543.750 39,521.614 Ill. Prepaid expenses 27,440 40.905
?
52,140.870 47 206.889 50
shareholders' equity and liabilities 9/30/1985 9/30/1984
- 1. C pital stock of Siemens AG Common stock (total number of votes 46.811,013) 2,340,550 2,166,785 Preferr6d stock (to!al number of votes 923,634*)
46,182 43,616 2,386,732 2,210,401 Potential capital 118,669 -
[ 125,0001 j.
Authorized capital 47,000
[ 217,000]
II. General reserves Additional paid-in capital 3,591 422 3,072,301 Consolidated retained earnings 6,605,376 5,717,271 10,196,798 8,789.572 111. Minority interests 683,183 648,565 (including 54,313 interest in net income and 28,359 in losses)
Shareholders' equity 13.266,713 11,648,538 t
IV. Special reserves R:s';rve pursuant to $1, Tax Act on LDCs R: serve pursuant to $74, income Tax Regulations 109,524 122.908 61,186 109,725 Riserve pursuant to $6b, income Tax Mt 18,949 3,774 Riserve pursuant to Section 35, income Tax Cicectives 4,216 R: serve pursuant to $1, Foreign investment Act 539 539 R: serve pursuant to $3, Foreign Inves>nent Act 82 82 194,496 237,028 J
V. Provisions Provision for pension plans 8,792,285 7,744,755 Other provisions 14,192,081 11,7 T6,209 22,984,366 19.520,964 VI. Liabilities Borrowings with contractual terms of 4 years or more Bonds and debentures 1,110,496 1,291,591 secured by mortgages 15,592
[ 17,783]
Bank borrowings 887,000 866.178 secured by mortgages 75,184
[ 83,180]
Unlisted loan notes and other loans 260,106 205.592 secured by mortgages 43,664
[ 58,144]
2,257,602 2,363,361 due within less than 4 years 951,855
[ 998,077]
with contractual terms of less than 4 years Bank borrowings 979,812 827,121 Unlisted loan notes and other loans 32,109 77,053 1,011,921 904,174 3,269,523 3,267,535 Oth;r liabilities Advances received from customers 4,428.082 5,380,017 Accounts payable 3.967,893 3,363,301 Lk bilities from acceptances and notes payable 18,166 18,811 Liabilities to nonconsolidated subsidiaries 53,034 115,807 Miscilianeous liabilities 3.269,465 3,100,786 with contractual terms of 4 years or more 110,884
[ 116,321]
secured by mortgages:
446
[
456]
due within less than 4 years: 26,145
[ 33.279]
11,736,640 11,978,722 15,006,163 15.246,257 Vll, Deferred income 116,316 112.022 Vill. Unappropriated net income consolidated 572.816 442,080 Contingent liabilities on notes
. 491,177
[ 585,372]
to subsidiaries
[
4851 Guaranties
. 415.367
[ 380,660]
Warranties
, 509,550
[ 664,8~9]
Collateral for liabihties of others 1,841
(
1,G30]
52,140.870 47,206,889
- In the instances set forth in $23 of the Articles of Association, the preferred stock is entitled to six votes per share.
51
Worldwido consslidated statemsnt of incoma '
' fsr the period October 1,1984 to September 30,1985 on,housands o, D, 1984/85 1983/84 N;t siiss 54,616,321 45.818,573 Ch",nge in inventories of finished prorfacts and work in process, r
l in th3 cost of unbilled contracts, and in equipment leased to customers
- 1,820.040 1,380.125 52,796.281 47,198,698 gg Comptny-produced additions to plant and equipment 848,860 599.378 Totti opsrating performance 53,645,141 47,798,076
. Less-cost of materials, suppus, and merchandise 20,727,605 19,219.092 Gross rssu.t frcMoperations,
32,917.536 28,578,984 i
incomi under profit-and-loss transfer agreements 14,866 31,879 l
Incoma from investment in shares of nonconso!idated subsid; aries and associated companies 82,822 50,591 incom@ from other investments 1,039 2,068 2.829,247 2,386,899 l ' ~.OthIt inttrest and similar income Gans on disposal of fixed assets and investments 108.038 67,457 Crrdit to income from elimination of provisions 108,525 63.694 Crtdit to income trom etimination of special reserves 61,923 27,916
'Miscillineous income 2,7M,329 1,879.545 including extraordinary income 59.205
[ 30,950]
5.911,789 4,510.049 38.829,325 33,089,033 Wages s.nd salaries 15,795.464 14.523,478 Stitutory social welfera contneutions 2,460,287 2,172,049 Exptnsa related to perision plans and other employee benefits 2,170,663 2,032,051 D1prsciation on property, plant, and equipment '
2,110.451 1,727,175 12,750 19,172 Writidown on investments
~
994,443 1,009.743 IntItsst and similar expenses y
Taxis on income, net assets, and real property
- i 2,122,449 1.422,978
- othir, 152.942 122.171 2.275,391 1,545.149 3
e Losses absorbed under profit-and-loss transfer agreements 13,925 4.294 Transtsrs to special reserves.
19,391 6,887 Miscsitineous expt nses not itemized elsewhere 11.448.254 8,982.787 37,301.019 32.022,785 Nst income for the fiscal year-1,528.306 1,066.248 Balance brought forward by Siemens AG from prmous year 232 1,432 Transfsr from net income to consolidated retained earnings 929.768 608.128 Minonty interests in consolidated subsidiaries' - net income 54,313 59,146
- losses 28.359 41.674 25,954 17,472 Unsppropriated net income consolidated 572.816 442,080
- Anar deducten of ou 4o 343 (previous year 26 9871 mnon m corporate mcome tax credits relating to dmdsnds paid by companies in the Federai Repubiec of Go many Siemens Aktiengesellschatt The Managing Board According to our audit, conducted with all due professior.al diligence, the consolidated financial statercents and the report relating thereto comply with all statutory requirements.
Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprufungsgesellschaft Dr. Clemm Schnicke Berlin and Frankfurt on Main Wirtschaftsprufer Wirtschaftsprufer Munich, January 24.1986 (independent auditors) 52
Notcs to tha worldwide consolidated financial statements and to the financial statements of Siemens AG*
How we conso//date consolidated Siemens sales. Seven ma-and income within the Siemens organi-In addition to Siemens AG, we have jority-owned companies are not conso-zation; and all receivables and liabilities included in the worldwide financial state-lidated, since they do not operate under between consolidated companies. When ments virtually all companies in the the uniform direction of Siemens AG.
there are differences between our meth-Federal Republic of Germany and abroad Five domestic and ten foreign com-ods of valuation and those used by our in which Siemens AG is directly or indi-panies are included in the consolidated foreign consolidated companies in their rectly entitled to cast a majority of the financial statements for the first time, local financial statements, and when votes, a total of 39 domestic and 129 for-while one domestic and 18 foreign com-consolidations have an effect on earn-eign companies. Retirement and other panies are no longer consolidated. This employee benefit corporations have not year's figures are nevertheless compa-been consolidated, since their inclusion rable with those of the previous year.
Our cap /tal expend /tures for the manu-would have reduced the reporting value We have prepared the statements of facture of CMOS c/rcu/ts with w/dths of the financial statements. With no both the domestic and foreign consoli-o//ess than one-thousandth o/a mil //-
adverse effect on the fair presentation of dated companies according to uniform meter /nclude the construct /on o/a our asset and income position, we have principles of valuation and classification plant /n Regensburg cost /ng more than also omitted 144 companies that are set forth in the German Corporation Act.
DM 500 m/// ion. Th/s cross-sect /onal either inactive or have a low business The consolidation of our investment in p/cture ///ustrates the extreme /ysoph/s.
volume. Their sales are less than 10/o of subsidiaries is effected in accordance f/cated manufactur/ng environment; wnth a method which closely resembles The ch/ps are produced at ground level The notes and emplanations relate to both financial that used in the United States. In the (ye//ow) and the surrounding fac//ities caI[dS a no'0[r'e erI((c!Iveiy tNne"sUIf[meIs of consolidated statements we eliminate (blue) are used to provide opt / mum s.emens AG intercompany profits; sales, expenses, clean-room and c// mat /c condit/ons.
V N
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worldwide consolidited fin nci:1 st:t ments and t3 the financial statements of Siemens AG ing), potential taxes are added to the the declining balance method for mov-ever lower book values are permitted for prtvision for taxes.
able assets, at the highest rates permis-tax purposes, they have been used in Intirim statements are used for com-sible under the tax laws. We change over the balance sheets. Loans made as in-pani s which have a fiscal year that dif-to the straight-line method as soon as vestments are discounted and stated at firs from that of Siemens AG.
the latter leads to higher depreciation. In their cash value.
the statements of our domestic consoli-Equipment leased to customers is val-How we translate dated companies, we took advantage, as ued in the Federal Republic of Germany into German marks in previous years, of all opportunities for at the cost of acquisition or at the pro-Our foreign companies' property, special depreciation afforded by the tax duction cost for tax purposes, and in pimt, tnd equipment, investment in laws. Extraordinary depreciation is taken foreign countries at Siemens production subsidiLries and associated companies, where a lower book value is deemed cost. Scheduled depreciation is taken gnd equipment leased to customers are necessary. Minor fixed assets -in the according to the usefullife of the prod-trinslated at the exchange rates pre-Federal Republic of Germany, those uct groups. In the Federal Republic of viiling at the date of their acquisition or costing less than DM 800;in foreign Germany, we use the declining balance production, and their other assets and countries, with varying maximum values method for depreciation insofar as pos-lilbiliti s at the year-end middle rate.
- are written off completely in the year of sible under the tax laws, and also take income and expenses shown on the acquisition.
advantage of all opportunities for special stLtimInt of income are translated at intangibles are not capitalized; they depreciation for tax purposes.
tvirrgs rates for the year, except for de-are valued at DM 1.00.
We have included materials, supplies, prrciition on property, plant, and equip-The investment in subsidiaries and and merchandise for resale under inven-mint, rnd on equipment leased to cus-associated companies is carried at the tories, at the lower of cost or market.
tomirs, for which we use the rate in lower of cost or market. Furthermore,in Products are carried by our domestic (ff;ct at the time of acquisition or pro-the Federal Republic of Germany, wher-companies at the production cost for tax duction.
In th3 year under review, the trans-lition of foreign financial statements BelarlCe Sheet structure 52.1 produced a positive balance which we (in billions of DM) 32.2 i ~14 4 4 Short-term liabilities have transferred, as in previous years, to a provision for exchange risks.
'y lj A
How we value assets Medium-and Property, plant, and equipment is val-P 24.43 32.3 long-term uid at tcquisition or production cost, Hawes liss scheduled depreciation. Production Short-term 16.7
-10.3 i j p
cost includes materials, direct labor, mar e a e' 1
(nd production overhead;in the Federal securities, liquid assets Rtpublic of Germany it is computed in hne with the laws regulating tax valuation.
10.3 O D:preciation is taken on residential, Leased equipment. in-9.1 offica, and factory buildings for a maxi-ventories. medium-and 13.3 ; a Shareholders' mum of 50 years; on plant machinery long-term receivables equity 9.6 8.8 ;
and facihties for a maximum of 10 years; and on plant and office equipment, as a n n s ents ruti, for 5 years. In the Federal Republic September 30,1980 September 30,1985 of G:rmany we use, wherever permitted, 54
Siemens worldwide flow-of-funds analysis (in millions of DM) 1984/85 1983/84 Net income for the year
- +1,528 9 1,066 ;
Depreciation and writedowns on fixed assets and
,i +2,598 p'0 +2,218]0 inv:stments and equipment leased to customers Change in medium-and long-term provisions
['
J Lj and special reserves
+ 2,730 ? +2,672 l Cash flow
+6,856. E+5,956 9 Additions to fixed assets and investments
-4,162 ' (-2,421 J Change in inventories and equipment leased to customers
, + 1,632 4-2,254 j incriase in receivables (incl. advances to suppliers)
L - 1,175 p-1,1901 Change in miscellaneous balance sheet items
' + 789 1 + : 538 :
Funds tied up in operating assets
- - 2,916
' 5,327 j Chinge in advances received from customers
- 3,853 } +1,689 o Chinge in other liabihties
+ 269 n+ 479 l Cash provided from operations s - 3,584 ? +2,168 -
incrt:se in paid-in capital E+ ' 696 i + ' 244 o Chinge in borrowings i+
2 E-1106 j
~
Other financing operations
+ 698 i + L 138 3 Notes on our//nsncle/pos/t/on Heavy capital spending caused fixed Change in liquidity
' +1,054 y +2,935 ^
assets and investments to c'imb sharply.
At the same time, the funds tied up in in-Development of liquidity ventories decreased, owing to the billing Liquid assets
?-'
-74 !41,006 4 of three nuclear power plants, with a Marketable securities and notes
+ 1,128 E+3,943 i corresponding reduction in advances Change in liquidity i + 1,054 i42,935 3 received from customers. The cash flow continued to rise, reaching DM 6.9 bil-lion, due both to the growth in earnings Liquidity at September 30 20,540
.19,486 '
and to internal financing, which was based primarily on higher depreciation.
As a rosult of this additional generation of funds, there was again an improve-ment h liquidity. The flow-of-funds anafy-purposes and by our foreign companies ment of Corporate Pension Plans. Inso-sis on this page provides further infor-at production cost as calculated under far as necessary, the foreign Siemens mation about the changes in our finan-the German Corporation Act. In valuing companies establish provisions for cial position.
iny:ntories we took advantage of all pension plans according to comparable options afforded by the tax laws. We also principles. The provisions for pension Notes to the bs/ence sheet made use in Germany of the opportunity plans of Siemens AG and other domes-Additions to property, plant, and to take a lower value for inventories that tic companies cover not only the con-equipment during the year under review are subject to major price fluctuations tractual claims of active and retired em-came to DM 3.7 (previous year 2.2) bil-( 155 Par. 3 No.1, German Corporation ployees to whom collective bargaining lion. Depreciation and writedowns on Act), inventories supplied by consoli-agreements do not apply, but also direct additions made during the fiscal year d;tzd companies are valued at Siemens retirement benefit commitments - which amounted to DM 1,043 million (chart on production cost. A reasonable and suffi-were raised from 600/o to 800/o during page 56). Siemens owns 37.5 (previous cient allowance is made for possible de-the year under review - made to employ-year 35.8) million square meters of real clines in value due to prolonged storage ees covered by collective bargaining property,590/o of which is located out-and rsduced marketability.
agreements, and the rights of the latter side Germany.
In valuing receivables and miscella-to transitional payments. Siemens-We are titleholders of long-term build-n ous assets, we take all perceivable Altersforsorge GmbH is responsible for ing rights for the construction of admin-risks into account. Accounts receivable the remainder of Siemens AG's pension istrative buildings and sales offices on due after one year which bear little or no commitments to employees covered by land owned by others. Similar rights on int rest have been discounted.
collective bargaining agreements and for land belonging to Siemens AG have Marketable securities and notes are pension benefits payable to employees been granted to outside companies that stated at the lower of cost or market.
who retired prior to September 30,1983 have built sales offices and administra-In determining our provisions we and their dependents. Other retirement tive buildings for us. At the end of the made reasonable and sufficient allow-benefit corporations exist to provide fiscal year, we had leased 58 properties ancs for all perceivable risks. The provi-old-age benefits for the employees of our from leasing firms, of which 7 were sions for pension plans at Siemens AG companies in Germany who are covered located abroad. In 1984/85 the rental and other domestic companies are set by collective bargaining agreements.
expense under these leases was DM 87 up according to actuarial principles, us-Non-recurring expenses relating to (previous year 89) million.
ing the method of computation provided long-term borrowings have not been Additions to the investment in non-forin the German Act on the improve-capitalized.
consolidated subsidiaries and asso-55
~
Notes t? the worldwide c ns: lid:t:d fin:ncill st;timents and ta the financial statements of Siemens AG cittzd companies shown on the world-Depreciation and writedowns on 1984/85 additions to fixed assets and inves*>nents wida bilance sheet relate primarily to (in millions of DM) capittiincreases and acquisitions of Additions including Depreciation and j i
writadowns q rdditional holdings, most of them in reclassifications thm U.S.A.
,,symy siemeg gg g3 On the balance sheet of Siemens AG Land and equivalent rights to real property
- 34.5j this itIm reflects, in addition, capital in-with office, factory, and other buildings 529.2 347.3 :' ' 56.8..
1 with residential buildings 3.8 :
s 0.1 c
,-j crains by, and acquisitions of interests 45.9 46.8 M 0.5 -
without buildings
. i.3 /.
' 1.8 '
in, virious Consolidated subsidianes in Buildings on land not owned
'25.5
. 2.4
..229.8 4 f 143.9 j 0
tha U.S.A. and in Switzerland, among Plant machiner y and f acilities 860.8
~ 488.5 Plant and office equipment 1,766.4 -
1,136.5.; 1 660.1 -
400.7.1 othir countries.
1 Construction in progress and I
R:tirements consist primarily of the advances for fixed assets 470.1
' 367.3 294.9.
71.5 'D book vilues of Capella Beteiligungs Property, plant, and equipment 3,701.7 2.388.8 M-1,043.01 700.9 4 GmbH and interests in Polygram BN.,
Investment in subsidiaries and associated companies 448.1.
969.9 n ' ' 1.1.
- - f which were sold during the year under other investment securities
=
0.1,
,i+$
-N L ans 123 0.51 121 -
d r:vi;w, in tha financial statements of Siemens Fixed assets and investments 4.162.0 3.359.2
. = 1,046.2 -
760.9 4 AG, we wrote down our holdings in Trtnsformatoren Union AG.
Lotns relate almost exclusively to resid ntial construction loans.
On the consolidated balance sheet, of our liquid funds in fixed-income secu-Tha adjustment resulting from consoli-advances received and passed on to rities and unlisted loan notes. Of our to-dation is the difference between the pur-subcontractors have been deducted tal portfolio, approximately DM 3.8 billion chast price and the value of Siemens' from advances to suppliers.
will become due for repayment in fiscal intzrsst in the equity of the consolidated in the consolidated financial state-1985/86 and approximately DM 3.6 billion companies at the date of their acquisi-ments, receivables from nonconsoli-in the following fiscal year, Our securities tion or initial consolidation; this differ-dated subsidiaries include receivables holdings include debentures and bonds ence results from the acquisition of due from the employee benefit corpora-issued by Siemens companies and goodwill or reserves. Upward (goodwill) tions. In the financial statements of warrants to purchase shares of Siemens adjustments primarily concern the con-Siemens AG, receivables from subsidia-AG.
solidation of Kraftwerk Union AG, Dr.-
ries also include mainly trade and loan During the 1984/85 fiscal year, a total Ing. Rudolf Hell GmbH, OSRAM GmbH, receivables from domestic and foreign of DM 176.3 million was added to the Transformatoren Union AG, and Siemens companies. As in the previous capital stock by the issue of 3,475,309 Sirm:ns-Allis, Inc. Offset against these years, we sold export receivables of common shares and 51,313 preferred adjustments was a small amount repre-Siemens AG as well as receivables of shares. This amount included DM 140 senting downward (reserve) adjust.
Siemens companies abroad, million from a capital increase based on mants. The increase primanly concerned Loans within the meaning of 89, authorized capital I with an issue price of our companies in the U.S.A.
German Corporation Act include loans DM 100 for each share of DM 50 par val-In addition to data processing equip-to associated companies. Included in ue, to which shareholders were entitled ment, equipment leased to customers miscellaneous assets is our 250/o inter-to subscribe at a 1-for-17 ratio. Common consists mainly of communication equip-est in Allgemeine Verwaltungsgesell-shares with a total par value of DM 30 ment and systems.
schaf t f0r Industriebeteiligungen mbH, million were issued from authorized in the consolidated financial state-which holds an interest in Metallgesell-capital 11 and purchased for sale to our ments, inventones decreased, due to the schaft AG.
employees. The exercise of warrants finil billing of three nuclear power plants.
We have invested a significant portion attached to the 7%% U S. dollar bonds 56
Application of value added DM 25.2 billion =100%
- 2.3% for our shareholders 3.8% for the Company 3.9% for our creditors 9.0% for the government 81.0% for our employees 1984/85 floated by Siemens Western Finance the year's net income of DM 1,145 (pre-reserve and DM 36 million in the reserve N.V. in 1983 Ied to tne transfer of DM 6.3 vious year 804) million to Siemens AG's for treasury stock) and our share in the million from potential capital to capital retained earnings.
reserves earned by the consolidated Klock.
In the consolidated financial state-companies since they became Siemens in February 1985 Siemens AG pur-ments additional paid-in capital reflects companies. Our share in net income cha:ed 600,018 common shares (par val-the capital contributed in excess of par available for distribution, or in the bal-
. us: DM 30.0 million = 1.30/0 of the capi-value in connection with the capital in-ance sheet loss, of consolidated com-til stock) at an average price of DM 489 creases of Siemens AG and the value of panies was entered in this account, as p;r share, in order to offer them for pur-the warrants attached to the 7%% U.S.
was the cumulative result of eliminating chise to employees. Including the dollar bonds floated by Siemens West-intercompany profits, of consolidating 23,134 shares held in treasury stock at ern Finance N.V.We transferred DM 929 debts, and of translating foreign cur-ths beginning of the fiscal year, a total of (previous year 608) million from the con-rency accounts. Thus, unappropriated 484,087 shares (with a total par value of solidated net income of DM 1,528 (pre-net income consolidated corresponds to DM 24.2 million - 1.00/0 of the capital vious year 1,066) million to consolidated the net income available for distribution stock) was sold to employees at a pref-retained earnings. They comprise the of Siemens AG.
crintial price of DM 195 per share. At retained earnings of Siemens AG (includ-Net income for the year again includes ths close of the fiscal year, 139.065 com-ing DM 53 million held in the statutory no inflationary profits. Inflationary profits mon shares (par value: DM 7.0 million =
0.30/0 of the capital stock) were still on our books. They are valued at DM 258 Shareholders' equity at September 30 (in bitiions of DM) p;r share.
At year-end, the authorized capital to-14 14 tilad DM 47 (previous year 217) million.
13 Tha tuthorization to issue new shares 13 for which the subscription right of share-12 12 holdIrs is excluded (authorized capital
- Minority,
[N***
- 11) will expire after March 1,1986.
The potential capital of DM 118.7 mil-10 10 lion is reserved for issuing the common
^'
9 9
[, -==='"[
8 shir:s of Siemens AG that may be pur-i chased under the warrants attached to 8
gg thz U.S.$ 250 million issue of 7% %
7
)ning"I 7
bonds floated by Siemens Western
<^
Fin nce N.V. in 1903. During the year g/
undir review, option rights for 126,622 5
W 5
shirss were exercised.
=a'"
4 4
Wa added to Siemens AG's statutory f
r:sirve the capital contributed in excess 3
paid-in capital 3
""""~"
of p r value in connection with the capi-2 2
tilincreases and the exercise of option c
rights.
1 1
Tha reserve for treasury stock was O
CapHat stock o
incr:ased by a transfer of DM 31 million
'~~' '-
from retained earnings. We allocated h
h h
h h
h 5
h h
h h
DM 572 (previous year 363) million from
~
~
~
~
~
~
~
~
~
~
57
Notei to th).
worldwid a c nstlidited finIncill st111minta cnd to the financial statements of Siemens AG arist when the revenues reported in the bonds and debentures inCiuded in Our bOrrOWingS stittment of income are offset by chirgis based not on the increased re-Amounts outstanding at September 30,1985 (in millions)
Foreign DM plic:m:nt cost, but on the lower acqui-currency sition cost. When preparing accounts in Siemens Beteiligungen AG, 6%%1972/87 Swiss franc debentures.
Sfr 50 f $11 accordance with the German Corpora-Zurich 4%% 1983/93 Swiss frenc debentures -
Sfr100 '122!
tion Act such inflationary profits are.
Siemens-Elema AB, Solna 7%% 1972/87 Swedish crown bonds Skr 5 32) however, offset in whole or in part, for Siemens Financierings-10%% 1980/87 U.S. dollar bonds
.U.S.$ 75 '227 ex1mpla when the depreciation on addi-maatschappij NV.,
~
s tions to property, plant, and equipment The Hague calculated on the basis of their acquisi-Siemens India Ltd.,
15% 1971/92 indian rupee bonds
' irs 20 ? 5:
tion cost is increased by special depre.
Bombay 15% 1981/92 Indian rupee bonds irs. 50 T111 ciation permitted by tax laws or when, in Siemens AG Osterreich, Vienna 7% 1972/87 Austrian schilling debentures : - S 51 b < Fi the cas3 of company-produced addi-Siemens Western Finance NV, 9% 1970/85 U.S. dollar bonds U.S.$ e 3 m Si tions to plant and equipment, of equip.
Willemstad, Curacao 7%% 1983/90 U.S. dollar bonds
-M4 U.S.$250 l00$I with warrants ment leased to customers, and of inven-Total 1,m tories, valuation is based not on the pro-duction cost computed by cost account-ing methods, but on the lower produc-tion cost for tax purposes.
Minority interests reflect the interests covered by the provision for pension Siemens companies abroad. In the con-of third parties in the shareholders' plans and the funds of the retirement solidated statements, the guaranteed equity and earnings of Transformatoren benefit corporations.
borrowings themselves are shown in Union AG, Reaktor-Brennelement Union Other provisions exist primarily for ob-place of these commitments of Siemens GmbH, and other companies. Minority ligations under warranties, employment AG.
interests abroad relate principally to our expenses, taxes not yet assessed, in Germany, according to the guide-companies in Austria, South Africa, losses on contracts not yet completed, lines of AKA Ausfuhrkredit-Gesellschaft Switzerland. Turkey, and India.
outstanding expenses for contracts mbH, we assigned receivables from ex-In addition to the normal allocations, already billed, and contract damages for port orders, for which we received cred-we transferred funds to the provision for delays in performance.
its from AKA in the amount of DM 188.0 psnsion plans to cover firm commit-Miscellaneous liabilities include ac-(Siemens AG DM 11.0) million on the ments to increase future employee crued wages and salaries, as well as out-basis of bills of exchange. In many coun-ben fits. and higher direct commitments standing statutory social welfare contri-tries promissory notes were executed to mada by Siemens AG and domestic con-butions and taxes.
secure bo rowings,in conformity with solidatsd companies to employees sub-local practice. Marketable securities and jtct to collective bargaining agreements.
Guarantles and other comm/tments unlisted loan notes with a value of DM We have al located the maximum Guaranties and warranties relate 43.5 million were pledged as collateral amounts permitted by the tax laws to the principally to loans made to associated for a commitment under a guarantee and provision for pension plans; the amount companies, to project-linked buyers' for customs duties (Siemens AG DM shown on the balance sheet corre-credits, to letters of support for credit 34.4 million for customs duties). We are sponds to the value computed by the facilities which must be reported, and in committed to make capital contnbutions statutory method in accordance with ac-warranties in the normal course of busi-to other companies of DM 56.0 (Siemens tuarial principles. The pension commit-ness. In the financial statements of AG DM 18.7) million.
ments of Siemens AG and its domestic Siemens AG, guaranties and warranties in addition, we have made commit-consolidated companies are fully relate primarily to borrowings of ments in the amount of DM 5.6 million 58
1 l
I We are concentrat!ng our capital expenditures more strongly than ever before on such growth areas as factory automation. At Nuremberg-Mooren.
brunn we have provided the facilities required for a further expansion of the Factory Automation Systems and IndustrialElectronics Division. The project is budgeted at DM 145 million.
v pursuant to 171, German Commercia!
' ~
Code, and in a negligible amount pursu-(i
).D the liabilities of Kraftwerk Union AG, due
~ ~ /
~ 5f ant to @ 24, GmbH Act.
[ l'(_ N -
Nh,, : '
Siemens AG is legally responsible for
.i
. g to its integration, and of interatom 3
GmbH, under a notarized deed.
s g" N
,h*'
ed O
We are jointly and severally liable as a
[
partner in companies formed under the e
,e '
s German Civil Code, through which we 3
have concluded profit-and-loss transfer
,, ?te sA piF l, se"""".5 agreements with other companies (cf.
- U i
pages 44 to 46), and as a member of gi w%
jg' 4j vanous work groups.
~
'y, fgg; Siemens AG has pledged to grantors neieaseo t:y tne o,stnct Govemment of uioote Francon a catois2 of loans from public funds that it will not Interest income was DM 1,835 (previ-sales and administrative costs such as encumber its real property.
ous year 1,377) million higher than inter-travel expenses, rentals, commissions, est expense.
freight, insurance, and general adminis-Notes to the statement of /ncome Gains on disposal of fixed assets and trative expenses, additions to value ad-Net sales, which are reported net of investments include the net profit from justments and provisions. secunties and value added tax, include our income the sale of Capella Beteiligungs GmbH foreign exchange losses, and losses on from leasing and license agreements.
and shares in Polygram B.V.
collections.
Income under profit-and-loss transfer Credits to income from elimination of Provided that the Annual Meeting of agreements was derived pnmarily from special reserves resulted from the elimi-Shareholders on March 20,1986 ap-Bosch-Siemens Hausgerste GmbH and nation of reserves pursuant to @ 1, Tax proves the proposed dividend, the Plania Beteiligungsgesellschaf t mbH.
Act on LDCs and reserves pursuant to amount spent by Siemens AG during in the statements of Siemens AG, this 74, income Tax Regulations.
1984/85 for the Supervisory Board will item also includes the income under Miscellaneous income includes, in be DM 1,015,840, for the Managing profit-and-loss transfer agreements with particular, foreign exchange and securi-Board DM 17,287,802. and for former Kraftwerk Union AG, Dr.-Ing. Rudolf Hell ties gains, income from various services, members of the Managing Board and l
GmbH, and Vacuumschmelze GmbH.
subsidies and grants for research and their surviving dependents DM income from investment in shares of development, Berlin sales tax benefits.
11,124,841.
nonconsolidated subsidiaries and asso-and capital investment grants.
Net income for the fiscal year as ciated companies includes the earnings Wages and satanes as well as statu-reported in the consolidated financial distnbuted by Fides-Industrie-Beteili-tory social welfare contributions contin-statements is shown net of the results gungsgesellschaf t mbH and Bergmann-ued to increase.
of consolidations.
Elektricitsts-Werke AG.
The expense related to pension plans In the statements of Siemens AG, the and other employee benefits includes income from investment in shares of special allocations to the provision for Berlin and Munich. December 20,1985 subsidiaries and associated companies pension plans and transfers of additional consists mainly of distnbutions by various funds to our retirement benefit corpora-Siemens Aktiengesellschaft consolidated companies in Germany and tions in order to increase their re-The Managing Board abroad, including, in particular, dividend sources.
payments by Siemens Beteiligungen AG, Miscellaneous expenses not itemized Zurich, and Siemens A E., Athens.
elsewhere ara made up pnncipally of 59 i
Managing Board Karlhtinz Kaske, Dr.-Ing.
Heads of Groups Heads of Divisions
- Paesident and Cnief Executwo offmer
. and Corporate Divisions:
and Staff Divisions:
Theodor Baumann, Dr.-Ing. E.h.
Gerhard B6rnecke ElectrealInstallatons Group Communcaton and informate Systems Group (Member of the Managmg Board until September 30,1985)
Manufactunng Hans Baur, Dr.-Ing.
Ernst Gerhardt Telecommuncate Networks and Secunty Systems Group Te*ecommuncaten Networks and Secunty Systems Group Bosmess Admirustraton r
Karl Heinz Beckurts, Prof.Dr.rer.nat.
corporate nesaarch and Tecnnaiogy Heinz Gumin, Prof. Dr. rer, nat.
Central Department for Management personnel Hermann Franz Ewnes instsiatons G,oup Giselher Kadegge, Dr.-Ing. E.h.
(as of october 1,1985)
Power Engmeereg and Automation Group industry Onnsons Hermann R. Franz, Dr.rer.nat.
components Group Gerhard K0hne, Dr.jur.
Communcation and Informaton Systems Group Busmess Administration Max G0nther, Dr.jur, corporate Busmess Admmistration Werner Poschenrieder, Dr.-Ing.
Communcation and informate Systems Group Claus Kessler, Dr.-Ing.
osia Systems Communcation and information Systems Group Dieter von Sanden Dr.-Ing. E.h.
Friedrich Kuhrt Dr.rer.nat.
Ccesuitant to carporaie uanagement on Medical Engmeermg Group Commurucation Technology (deceased July 10.1985)
Heribald N&rger, Dr.jur.
Carl-Heiner Thomas corporare reance Power Engmeenng and Automation Group Busmess Admnustraton Hant-Gerd Neglein corporate Saies and Markeimo Hans H. Schlitzberger Corporate Personnel Hans G0nter Vogelsang. Dr.-Ing.E.h.
Power Engmeermg and Automaton Group i
Vicb Presid nts*
Karl-Hermann Baumann, Dr.rer. cec.
Horst Hoerster Karl-Heinz Preiug, Dr.oec.
Corporate Finance Corporate Sales and Marketeg Electncal instaHatens Group Fmancial Statements Bonn basson Offra Busmess Admastiation KirlBeusch Genus Counse Eberhard Kill Joachim Putzmann Corporate Fenance Power Engmeermg and Automanon Group Central Berkn Admastrahon corporate Legal and fan Matters Power Devises Riinhold Braun, Dr.rer. pol.
Hartwig Rogge Herbert Kirmse Corporee Bus. ness Adrnnswanon Communce.n and infumanon Systems Group Corporate Management Audit Power Engmeenng and Automation Group Augsburg Systems Plant Manufactunng and Product Deveinpment.
Commercial Servces Wolfgang Buchholz Dankwart Rost, Dr.phil.
Toscommuncanon Networks and Secunty Systems Group Pubac Communcpon Networks Franz Klingan. Dr.rer. pol.
Corporate Sales and Marketeg TMecannwicate Caw Corporce Advetising and Design Corporate Busmess Admnstranon Reat Estate and Construchon Max-Theodor Commes Heinz-Georg Salge Corpoente Busmess Admnstrata Power Eng intwne,on,meereg and Automation Group Corporce Contron.ng and Accounnna J0rgen Knorr ope,c ns and r,ed Sen,ces Component Gmun Herbert Diehl uanufactunna and Pmduct Onepn=nt.
Sen conductwo Konrad Samberger, Dr.-Ing.
pow Engmecing and Automeen Group Commercel Departments.
Power Engmeenng and Automahon Group i.
'"d"'"'D"*"*
Joachim-Christoph Koch Dietrich Ernst, Dr.sc.techn.h.c.
7,','c,,"**jac*g'*j,s and Secunty Systens Gmup Wilhelm Scherer
,c
- Poww Enginewmg and Automehon Group Systems Engmeenng Development Power Engmeermg and Automaton Group Special Assignments Friedrich Kren
- Rsinhard Ernst Co,po,,e Bus,ne Admmtre,on Connacts and PWents CentrW Senaces Hanns E. Schreiber, Dr.oec.publ.
Corporm Pesonne Rudolf Frank Corporate Personnel and Educational Pohey Siegfried K0gler Madeal Engmecmg Group Manufacturmg Telecommunicaten Networks and Secunty Systems Group Safety and Secunty Systems Peter C. von Siemens G0nther Fritsch Cwpaat. Renarch and Technegy Business Admastration Power Engmeermg and Automahon Group Horst Langer, Dr.-Ing.
$""a'n"d%"a*n*i'tu ng Es% **'*
Peter Sombeek
$a Cam Plants Helmfrid F0lling Communcanon and inewmeion Systems Group Hans Luttged Data Systems Smes and uartermo pow, gng, nee,mg and Automat,on G,oup Hans-Otto Thrune Schaltwern ElectrcalInstallatons Group Hartmut Gebhardt Poww Cables Communcahon and information Systems Group Commun.cnon inmenw.
Jochen Mackenrodt. Dr.jur.
Corporme rmance Werner Th0rmel Peter Grassmann, Dr.-Ing.
Capaate Admnsiraten of Corporate Research and Technology l
g g,,,,,,,,,,,,,
Subsidianes and Assoc.ated Compan.es Corporate Production Engmeermg Cross-Sectronalimagmg Systems and Therapy Alexander Grossmann, Dr.oec.publ.
Werner Maly Walter Urbach, Dr.rer.nat.
i
,,d,c,, gny,,,,,,, o,,,,
po,,,,n,me,,mg nd,u,om,,on o,ou, CentralInformation Department Busmess Admnstration instrumentaten and Control l
Otto-Hermann Gr0neberg Corpace sees and uarketmg Dietrich Frhr. von Mandelsloh Siegfried Waller Regional Ottmes Admmistration Central Department for Management Personnel Power Engmeereg and Automaten Group i
Factory Automahon Systems and Industnal Electrones Werner Haas, Dr.-Ing.
Bruno Meiler uedics Engmeenna Group Erich Wenzel X-ray Systems Components Group M4nufacturmg and Product Development, Power Engineermo and Automaton Group
- 've C mp nents and Electron Tubes Standard Products Jost Hammerschmidt. Dr.rer. pol.
1 Corpore. Sees and u,* tmo i
entwnstonai opemen*
Anton Michl Gerhard Wiest Corporate Personne Telecommuncation Networks and Secunty Systems Group Erwin Hardt Corporate Social Pokcy Pubhc Communcaten Networks 4
i Telecommurucahon Networks and Secunty Systems Group Pubhc Communicat on Networks, Busmen Administrahan -
Bruno M0ller, Prof.Dr.-Ing.
Andreas Wordell j
Power Engmeenng and Automation Gmup Components Gmup Wolfgang Herde Po*er Gene anon and Distnbution Busmess Admnstrafen Power Engmeermg and Automation Group uanufactunna and product Deveion"*"'
uanufactunn, op. cions.
Klaus M0ller-Zimmermann, Dr.rer. pol.
K!aus ZiegIer Manufacturmg Operatons Abroad Fmance s
Rudolf Herz, Dr.-Ing.
Friedrich Ohmann, Dr.-Ing. E.h.
Andreas Zimmermann. Dr.oec.
g son Nm Secunty Systems Gmup
'e's"g * ' *"
transm.u.on Systems
{e;ecyyste Netwwks and Secunty Systems Group C
t Walter Heywang, Prof.Dr.rer.nat., Dr. Ing.h.c.
Alfred Orth Corporate Research and techno8ogy Communicalon and informaten Systerns Group Corporate Research and Development.
Private Communcata Systems and Networks.
Research Laboratories Bssmess Admnstrata
- St January L 19%
61
Tha Siomans sharo Dividend increased again The Superv/sory ar.d Manag/ng Boards grew by DM 19.70 to DM 148.80 per are recommending a div/dend of DM 12 share. Thanks to this continued growth (prev /ous year DM 10) on each DM 50 in internal financing we were able to share for fiscal 1984/85. Th/s repre.
finance the sharp increase in future-(18.75T sent]c rise o/30% to DM 573 m////on oriented capital investments entirely In the d/stribut/on to shareholders. In from our own funds.
O March 1985 we offered oursharehold-In view of the rise in earnings, the r
[ q [., b ers new shares, wh/ch are ent/f/ed to Supervisory and Managing Boards are WJA w
the fu// d/v/dend for the year under re-recommending that the dividend for the y p'g; f.96]
!12.00 v/ew, ct a preferent/a/pr/ce of DM 100.
fiscal year 1984/85 be increased once
] f d [ d ; 9.55
. - with tax credit.
Dn September J0,1985 the adjusted again by DM 2 to DM 12 on each share 9
'l mark;f pr/ce of the Slemens share was with a DM 50 par value. For domestic F
y 3 dv 45% h/gher than a year car //er, shareholders the per-share dividend, b
including the tax credit, amounts to
! 7.35 '-
7.35' ; 7.65; The favorable trend in the Company's
=
business led to a further improvement in An attract /ve subscr/pt/on r/ght its earnings and financial position. In fis-In March 1985, we offered our share-cal 1984/85 consolidated net income in-holders new shares at a 1-for-17 ratio for creased from just short of DM 1.1 billion a preferential price of DM 100. Since the m
o to DM 1.5 billion. Excluding minority in-market quotation for the Siemens share 1:rcsts, the result is a net income of DM was DM 562 on the day before the capi-32.70 per share, or DM 9.90 more than in talincrease, the subscription right was fiscal 1983/84.
highly attractive; it was traded at an aver-The cash flow, which represents the age price of DM 26.60.
increases, Siemens shareholders had an Company's internally generated funds.
As on the occasion of previous capital opportunity to reinvest the proceeds from the rights issue, thus increasing their holdings - and their dividend base.
The Siemens share:
The Siemens share:
as weli-without the use of additionai per-share data 1984/85 monthly highs funds. The net effect of the capital in DM (adjusted retroactively) and lows increase and the addition of DM 2 to the in DM dividend represents a gain of 26% in the per-share dividend. Over the past five Net income for the year 22 80 [ 32 70' 600 witnout minority interests fiscal years, the adjusted dividend, in-Dividend 9 55l 12.00) ciuding the tax credit, has grown by DM 550 Dividend 14'90 ? 18'75' l
with tax cred,t growth").
I Cash flow 129.10 l 148.80' As in previous years, we were again able to strengthen our reserves from 237.40 263.60' 450 l
earnings and from oremiums paid in con-6har n e, ao; equity ders I
se t nection with t.e capital increase. This Market price 416.40 605.50 I
(September 30) 400 was reflected in a higher book value for the Siemens share: equity per share inn 44 2 ' 4II 0 $ $ 4 2 $ 0 $ g,,,
$p!
i a>cggc se t c > qj rose from DM 237 to DM 264 at the end 83/84 84/85
_ - _. _.. _ ___. _ _. _ _.j of fiscal 1984/85.
62
1 1
Afarket price cont /nues to rise Stock market trend 1981-1985 Demand for German shares was un-(Index of adjusted quarterly closing prices; year-end 1958 - 100) abated in 1985 resulting in new records for share prices and trading volumes.
The Siemens share continued to be 1,100
/ 1,100 highly prized by domestic and interna-tionalinvestors and recorded the high-1,000 1,000 j
est trading volume on the German stock 900 900 exchanges. On the four principal ex-f changes DM 14 6 billion worth of 800
/
800 Siemens shares were traded dunng the 700 700 pzriod under review, or 130/o of the total sales of the top 40 German shares.
600
/
600 At the end of the 1984/85 fiscal year, 500 the Siemens share was quoted on the 500
[mrnens M
[
Frankfurt Stock Exchange at DM 605.50.
400 400 Mal.ag allowance for the subscription y
right, this is about DM 190 or 450/o E
E hi her than a Year earlier' j
Usted German corporations (Frankfurter 9
200 h-Allgemeine Zeitung's share price index) 200 The warrants attached to the U.S.
dollar bonds issued by Siemens Western 100 100 Finance N V. in 1983 were listed at DM 19 91 1982 19'83 1984 1985 376.50, an increase of DM 142 or 610/o.
In view of the positive economic fore-Nigh totalappreclation future-oriented technologies of the casts and the continuing good pros-from div/dends andmarket gains electncal and electronics industry, as pects for earnings in German industry, Thanks to dividend increases and, well as the Company's strong earnings share prices continued to climb during above all, to soaring market prices, trend and high liquidity, the first three months of the current investments in Siemens shares have The Siemens share is officially listed 1985/86 fiscal year. At DM 756, the year-produced yields in recent years that far on all eight German stock exchanges end quotation for the Siemens share in exceed the results from other forms of and on seven other European ex-1985 was, on a comparative basis,1740/0 investment. If all the income from divi-changes. More than 400.000 sharehold-more than the historic high of March dends (including the tax credit) and sub-ers in about 130 countries hold an inter-1976.
scription rights was reinvested during est in Siemens AG approximately 300/o As shown in the graph " Stock market the past five fiscal years and if the mar-of the capital stock of DM 2.4 billion is trend 1981-1985." the adjusted price of ket appreciation is taken into account, held by shareholders outside Germany.
the Siemens share has tripled in the bull the average annual return amounted to As a high-tech stock with a strong inter-market that has persisted since 1982.
230/o.
nal balance of risks the Siemens share it rose significantly faster over the long in recent months, leading market ana-has for years been far and away the term than the generallevel as deter-lysts. both in Germany and abroad, have most popular share in the portfolios of mined by the Frankfurter Allgemeine continued to recommend the Siemens German investment funds.
Zeitung's share price index. Investors share as an attractive long-term invest-have thus paid tribute to the Company's ment vehicle. They back this recommen-healthy improvement in earnings and its dation by pointing to our worldwide ac-intensified commitment to high-tech tivity in a highly innovative growth market I
fields of endeavor, and our commitment to all the vital 63
Tcn-year summary,_onso,-
i Idwid consolidated g,,
37, my
,7, g7,
,o
,,,3 g3 Assets Property, plant, and equipment 3.989 4.613 4,758 5,035 5.515 6.067 6,191 6,146 6.532 8.019 invgstm.tnts_and consohdat on adjustment 687 501 662 739 1.003 906 904 961 1,112 1.551 Fixed essets and investments 4,676 5,114 5,420 5,774 6,518 6,973 7,095 7,107 7,644 9,570 EquipmInt leased to customers _.
750 682 685 723 826 986 1.055 1.042 1.027 1.01_4 invsntories net o, advances from customers 3.211 3.289 3,869 4.818 6.539 6.450 5.760 4.460 5.856 6.697 Rictivibles and additional assets 6,430 7,910 8,824 8,481 9,199 11.092 11,757 11.281 13,194 14.320 Sicuntits and hquid funos 4.666 8.857 10,101 9.850 9.209 8.568 11,115 16.551 19,486 20.540 Current essets 15,057 20,738 23,479 23,872 25,773 27,096 29,687 33,334 39,563 42,571 Totd assets 19.733 25.852 28.899 29.646 32.291 34.069 36.782 40,441 47,207 52,141
_ [i
[))[
85ed5 Alder _s.' equity and liabilities __
__1,608_ _ _ _1.644 1,768 1715 1,942 2,052 Crpstd stock 1,594 2,194 2.210 2.387_
Gintrd reserves 4.240 4,693 5.267 5.899 6A63 6.645 7,337 7,965 8,790 10,197 M'no[ity interests _ _ __ _.
396 _ 400,, 466 _ _449 _ 4UJ _ _501 _ 591 665 649 683 Shareholders' equity pnd. unappropnated net ricomeE_6_,230__6,791_7,377_ 8,116 _8,837_
9,088 _ 9,980 _ 10,824 _ 11,649 13,267_
Sptctil reserves 171 198 228 266 265 285 307 258 237 195 Provisio_n for pension _ plans 2.831 3.205 3.640 4.315 4.671 4.940 5,484 6,752 7,745 8 792 Othsr provisions 3.365 4,691 5.994 6,332 7,162 0.006 8,527 9,493 11,776 14.192 6,367 8,094 9,862 10,913 12.098 13,231 14,318 16,50')
19,758 2?170 Provisions (incl. special reserves)
~
__]3.521]2.990] 2,71612,967]3._81014.60]3_,476]3 N3]3.267]59 Borrowings]_[ i_((
Othzt hbihties 3,361 7.720 8.682 7.367 7,240 6.786 8,680 9 390 12.091 11 A5J Liabilities 6,882 10,710 11,398 10,334 11,050 11,439 12,156 1 % 763 15,358 15,122 311 328 351 442 573 254 257 262 283 306~34.069~36,782~ 40'441~~47,207' ~ 564f N1t income available for distnbution
~~ 19.733 ~25.852~28 899~29.646 ~.291 Totjl funds. employed -~
32
"#8
"#8 Orti il S Of t1C m Tat:2 operating performance _ _ _. _ _ _ _ 21,316 _.26,043 _ 29,655 31,473_ _ 32.223 37,661 _.40,723 __41,450 _.47,798 _ 53_,645 Employment cost 9.843_ 10.811 11.829._ [7,141) _ [8.433] [11,038) [1_1,700)_
including intemational operating perforrnance _
_ _[6,186) _ [6.670) _ [6,892)
_ 15.531 17.074 17,844 18.728 20 420 12,796 14,406 Cost of materials 7,444~
9 882 11.431 12,486 ~ 12,154 14.302 15 230 15,790 19 219 20 728 Drpreciation_
'iT' ~ ~ _ __ _ ~ ~ ' ~
._._'[861 ] 971__ [ 1 040_ "1'184_ [ 1,311 [ 1,408 ].474 ] 1.560 ] [1.727 ] 1[10[
808 881 1,024 948 1,000 978 1.035 ~ 1,124 ~ 1.545 22/5 Taxss including' income taxes ['~ ~ [,
[' '_I[541))((562)((713] ]634]_~ ' [701)) ~ [683C ~[718) l[800) 'J1.256] ] 928]
~ -
~
1.754 2.848.
3.610_
3,377 2.719_
4.933_.__ 5.172 __ 4.330_ _ 5.513 _ 6 578 Othtr eapenses net of non; operating income
_ 20,710 25,393 28,934. 30,791 31,590 37,152 39,985 _ 40.648_ _46,732 52,117 Tit:J cupenses net o, non operating income.
650 721
_682 633 509
_ 738 _ 802_ 1,066 _ 1,528 Net incime on a comparative beels _
__606__
_257 _ 262
_283 305 309 327 351 _ 441_
573 Apphsd_to payment of dividends..
_254
_ transfer to retained earnings,
315_
_.351 _
412_
384 287 _. _139
_335 392 608 929 37 42 47 15 41
_61_
76
_. 59
_. _17 26
__ __ _ _ m_inorjty interests 64
9 Ordsrs received is7s/7s is7sm is77/7s is7s/7s is79/so issotei issies2 ise2/83 1983/s4 1984/85 f
Domestic companies 16.396 20.284 22,819 23.329 28,048 31,822 32,366 33,573 36,359 38.128 L:ss-export orders 6,000 8.474 8,574 8,829 10,870 11,459 13,645 11,515 12,948 14.189 l
Domestic business 10,396 11,810 14,245 14,500 17,178 20,363 18,721 22.458 23,411 23.939 l
Int:rnational business 11,489 14,122 14,803 15,286 18,171 21,214 24,376 22.450 24,713 27.875 Slomons 21,806 25,932 29,048 29,788 36,349 41,577 43,007 44,908 48,124 51,814 Change over previous year
+ 40/o + 1840 + 12%
+3% + 19Wo + 18%
+4%
+4%
+7%
+ 80/o S:l:s is7s/7s is7s/77 is77/7s is7s/7s is7s/so issoisi ises/s2 ise2<s3 iseses4 1984 8s Domestic companies 15,746 19,870 23,462 22,455 24,986 25,847 30,201 28,986 34.333 42,365 L=s-export safes 5,461 7,590 9,103 8,687 10,330 10,541 12,179 11,708 11,822 13 294 Domestic business 10,285 12,28J 14.359 13,768 14,656 15,306 18,022 17,278 22,511 29 071 Int rnationalbusiness 10,391 12,918 14,650 14,254 17,304 19,255 22,084 22,193 23,308 25 545 l
Siemens 20,876 25,19s 29,000 20,022 31,900 34,561 40,108 39,471 45,819 54,616 Change over previous year
+9% + 22% + 15%
- 3&o + 14%
+8% + 16%
-2% + 160/o + 190io Employees (in thousands) s.pt.mb.r 30, 1976 1s77 is78 197s 1980 1981 1982 i983 1984' 1985 l
Domestic operations 208 221 223 229 235 230 220 212 224 240 International operations 96 98 99 105 109 108 104 101 104 100 Siemens 304 319 322 334 344 338 324 313 328 348
' 83 Cf1 eW inVeS entS Dom:stic 994 1,336 926 1,137 1,463 1.358 1 (55 1,071 1,445 2 785 Internationas 475 349 451 500 692 640 712 620 965 1.367 Siemens 1,449 1,685 1,377 1,637 2,155 1,998 1,767 1,691 2,410 4,150 For new investments 123 39 151 116 303 55 55 98 183 448 For capi _tal_ expenditures 1,346 1,646 1,226 1,521 1,852 1,943 1,712 1,593 2,227 3 702 I
Depcciat on/ ret.ir_ements of fixe _d_ assets 899 1,022 1,081 1,244 1,372 1,450 1_,588 1,638 1,841 2.215
)
f in % of capital expenditures 6 70/o 62 %
880/o 8200 740/o 7540 93 % 103 %
83 %
6000
' As of 1984, this figure includes part time employees.
65
+
EIEMENS l
We shall continue to strengthen our worldwide Annual Meeting of Shareholders competitive stance with outstanding technical March 20,1986,10:00 a.m.
achievements. One product that has been Olympiahalle. Munich instrumentalin this process is this specialinte-Annual Report'85 grated semiconductor circuit for communication S emens AG, Wittelsbacherplatz 2 O
networks. Siemens is one of the first companies 0-8@ Md 2 in the world to have developed and supplied Federal Republic of Germany samples of such a circuit. In communication net-works conforming to the worldwide standard for Telephone Munich 234-0 the ISON (Integrated Services Digital Network),
Telex 521M-0 sie d circuits like this, with more than 10,000 transis-Teletex 838700-siemcw tors, make it possible to transmit text, images, Telefax Munich 234-4242 and data rluring a telephone conversation.
Btx 089234
- 32000 t:
j
)
- _ _ - _ _ _ _ _ _ _ _ _. __