ML20214P874
| ML20214P874 | |
| Person / Time | |
|---|---|
| Site: | Framatome ANP Richland |
| Issue date: | 12/31/1986 |
| From: | Kaske K SIEMENS CORP. |
| To: | |
| Shared Package | |
| ML20214P849 | List: |
| References | |
| NUDOCS 8706040138 | |
| Download: ML20214P874 (69) | |
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Siemens at a glance Siemens*
1984/85 1985/86-, enanaeg p, c, New orders 51,814 ' 50,183
- 3 Sales 54,616
'47,023
- 14 Employees (at September 30) 348,000 363,000
+4 including part-time employees Employment cost 20,426 21,281
+4 Capital expenditures and 4,150 -
'6,145-
+ 48 investments Research and development 4,799 5,401
+ 13 Income after taxes 1,528 1,474
-4 (Net income ict the year) in per cent of sales 2.8 3.1 in per cent of 12.3 10.4' shareholders, equity Total dividend of Siemens AG 573 576' Dividend per share in DM 12 12-plus a tax credit for domestic shareholders of DM 6.75 6.75 Amounts in millions of German marks unless stated otherwise
- Siemens includes Siemens AG and domestic and foreign companies in which Siemens AG is directly or indirectly entitled to cast a majonty of the votes and which are included in the censolidated financial statements.
This ed. tion of our annual report, prepared for the convenience of English-speaking readers, is a translation of the German onginal. French and Spanish versions are r ' available.
l
Table of content.s Report on the fiscal year October 1,1985 to September 30,1986 Position. Siemens is one of the largest electronics and elec-To our shareholders 2
trical engineering companies in the world.
Supervisory Board 4
Market and products. We are engaged almost exclusively in the field of electronic and electrical capital goods, where we Report of the Supervisory Board 5
offer the broadest sptctrum of products. Siemens is oriented Report of the Managing Board to the world market: Over half of our business is done with Generai review 6
customers abroad. International operations account for about one-fourth of value added, one-third of our employees, and Employees 11 more than 400/o of our capitalinvestments.
Corporate structure 13 Technology and innovation. The Company's prime objective Components Group 14 is to be a technolog, cal leader in its fields of activity, offering i
its customers special advantages through its superior tech-Energy and nology. Last year DM S.4 billion-more than 110/0 of sales-Automation Group 16 was spent on research and development. We are one of the pacesetting innovators in the industry.
Electricat installations and Automotive Systems Group 20 Stability and earnings. Solid earning power over many years communication and has provided Siemens with a strong financial basis. Our Information Systems Group 22 extensive range of products and a broad geographical sales spread ensure an effective i,1ternal balance of risks. As a Medical Engineering Group 26 result, whatever fluctuations may take place in the capital Telecommunication Networks and market, the Siemens share will always be a relatively secure Security Systems Group 28 I
investment.
Research and development 32 Shareholders.The income and price trend of the Siemens share, as well as the Company's stability and future Domestic Siemens companies 34 prospects, have caused the number of shareholders to rise Siemens companies abroad 38 to around 500,000. One-third of our shares are widely held abroad.
Major associated companies 42 Employees. We regard the skill, dedication, and high qualifi-List of Siemens companies and cations of our more than 360,000 employees as the most major associated companies 44 important factor in the Company's success.
Financial statements and notes 47 Growth. Over the past ten years, our sales have more than Managing Board 60 doubled. Forecasts for growth in the markets where Siemens Vice Presidents 61 is active are well above the general industrial average. The Company intends to grow faster than the market, as it has The Siemens share 62 in the past. Including both capitalinvestments and R&D expenses. Siemens is spending almost DM 12 billion a year Ten-year summary 64 to ensure its future.
To our shareholders p
m g - ymrnm" sidiaries in the fields of transmission Outlook
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[ wm j and switching systems. As regards tele-Since new orders exceeded sales.
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communications equipment, we are we started the current fiscal year with f
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.j now in third place worldwide. By ac-a higher order backlog (DM 55 billion, k
K quiring Potter & Brumfield,Inc., one of compared with DM 54 billion in the pre-
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the largest U.S. relay manufacturers, we vious year). Although new orders and
'f have become a leading supplier of relays sales for October and November did not on the international market. Finally, we quite reach last year's levels, we still took over Pelton & Crane Comp., the view our prospects for the remainder of second largest manufacturer of dental this year with cautious optimism. Posi-equipment in the U.S.A.
tive economic trends should prevailin Orders in nominal terms declined by Europe. Overseas, however, business 30/o to DM 50.2 billion, due largely to the will remain difficult. Slow economic j
sharp decline in the U.S. dollar and the growth has also been forecast for the continuing weakness of the power plant U.S.A. Nevertheless, we intend to raise market; adjusted for the effect of ex-our sales there from U.S.$ 2 billion to
change rate changes and without the around U.S.$ 2.5 billion. We will expand power plant business, the order volume our total sales from DM 47.0 billion to Fiscal 1985/86 was marked by very high rose by about 40/o.
well over DM 50.0 billion, due in part to capital spending and investments in the As we had expected, total sales the final billing of a nuclear power plant future. Our large-scale capital invest-decreased, since, in contrast with the and the inclusion of the sales revenues ment program proceeded on schedule previous year, no nuclear power plants of subsidiaries consolidated for the first at a total cost of DM 6.1 billion, almost came up for final billing during 1985/86.
time.
500/o more than in the previous year.
In addition, there was an arithmetical re-Thanks to our acquisition of GTE We built new plants for new products duction in the amount of our sales, as a activities, the work force will increase to and thoroughly modernized numerous result of the decline of the dollar: Higher approximately the same extent as in existing manufacturing facilities, while sales in dollars translated into lower DM 1985/86, when 15,000 employees were improving our position in strategically values. Thus, af ter a 190/0 surge during added to the staff.
important markets through the acqui-the previous year, sales decreased by During the current fiscal year, capital sition of shares in other companies.
14 0/o to DM 47.0 billion. Without these expenditures will continue at the same To manufacture newly developed, two extraordinary factors (the power high level. Including our research and ultra-sophisticated products, such as plant business and the decline of the development expenses. we will again be megachips or optical fibers, we are more dollar), a 70/o sales increase would have investing close to DM 12 billion for the and more frequently obliged to build been recorded. In our opinion, this future, to further strengthen the Com-completely new kinds of plants. For that growth rate best reflects the actual pany's position in the world market.
reason, one-third of the amount spent course of business.
on property, plant, and equipment in Sincerely, fiscal 1985/86 was related to new prod-Despite this steep dechne in sales, net ucts However, we also made substantial income, at DM 1.5 billion, came close to increases in expenditures for automation the previous year's level. We can there-to step up productivity in our offices and fore recommend that the Annual Meet-(b factories.
ing of Shareholders approve the same in the U S.A., we purchased from distnbution as in 1984/85, when the Dr. Karlheinz Kaske GTE Corporation transmission actmties, dividend was increased to DM 12 for as well as a number of non-U S sub-each share of DM 50 par value.
2
New orders in biiiions or ou Sales in biiiions or ou 70 70 70 70 60 60 60 60 50 50 50 50 40 40 40 40 30 30 30 30 20 0
20 20 Siemens saies 20 without power plant business 10 10 10 10 comestic business 0
0 0
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R S R R 8 5 m a a s a a a : a a a a a a a a a a : a a 4 a r-s s s s e m m e e e s
r-s r-s e e m e e m Capital spending in biiiions of ou Net income in minions or ou I
7 7
2,100 2,100 6
6 1.800 1,800 5
5 1,500 1,500 4
4 1,200 1,200 3
3 900 900 2
2 600 600 1
1 300 300 i
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Supervisory Board O
Ernst von Siemens.
Bernhard Plettner, Dr.-Ing. E.h.,
Wilhelm Polakowski, Berlin Dr.-Ing. E. h.,
Munich Armature We' der Munich cnuman Franz Rehm Munich Hermann von Siemens, Rudolf Mooshammer, Munich Prec' sea Mecn=
Dr. phil., Dr.-Ing. E. h.,
I,"c",,'ncna<nian qas d waren 20 im Munich Helmut Reithmeier, Munich Ferdinand Turek, Munich u te os me superwsory Board as of Marcn 20.1986)
Depu'y Cnawman Peter von Siemens' Tecnmc.an Dr. rer. pol,
tuember or me sapennsay soaro untii uncn 20.1986 Wolfgang Schieren, Dr.jur., Munich p,e.,o,n, o, gn,80,,o o, u,n,g,m.n,,
Munich Amanz Akten9eauscha't. uun.cn soeceawo us, n insi Wilfried Guth, Dr,rer. pol., Frankfurt Deputy Cha+ man chaman os me supennsory Board.
Eduard Schleinkofer, Munich Deutscne Bank AG, Frar'kfurt Regional Manager for Bavana.
Council of Honorary Chairmen IG Metali Werner Frischholz, Hamburg Alexander von Seidel, DUsseldorf n,,, o,.3, Tecnmc6ans. Cevd Servants and Master Craftsmen sectes German Uneon of Sain ed Employees Dieter Spethmann, Dr.jur., DQsseldorf cn rman et tne uanagement sono Herbert Gr0newald, Prof. Dr.rer.nat.,
inyswa AG wam August Toyswawite Dusuiomt l
Leverkusen cn.irman of ene supen,..o,y Board.
Fntz Steinke, Karlsruhe Davor AG. Leverkusen Maximilian Hackl. Dr.jur., Munich Dietnch Ummelmann, Erlangen Memtier of tne Board of Management.
Bayeriscne Verembant AG. Mumcn "9
Helmut Haeusgen, Frankfurt Couman of the Supervisory Boar,
Dresdner Bann AG Frankfurt Heinz Hawrehuk, Frankfurt Heaa of me step steemos Dep,tment.
IG uetart Wolfgang Keim, Munich 0+pt.ing Reimar Lost, Prof. Dr.rer.nat., Pans Dere<. tor Generar.
European scace Agency Egon Overbeck, Dr. rer. pol.,
Dusseldorf Memeer ei m. s4ervsor, Bo,o Menestnann AG Dusseedyf 4
Report of the Supervisory Board OUd R'tNUdGU
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the dividend, as well as the proposal that Erwin Hardt, Eberhard Kill, Dr. Horst FM MN the amount attributable to treasury stock Langer, and Dr. Konrad Samberger were Y
j be carried forward.
elected to the Managing Board. Their r.
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+
';"TE4 Dr. Peter von Siemens, who had been respective responsibilities are shown
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-{c with our Company for almost 50 years on page 60 in the list of members of the
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and had served for more than two de-Managing Board.
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cades on the Managing and Supervisory Boards, died on May 23,1986. From Q b;p.
fh 1971 to 1981 he was the Chairman of Berlin and Munich, January 28,1987
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our Board. We shall remember his in-For the Supervisory Board valuable services to the Company with gratitude.
//h On October 13,1986, Dr Hermann von Siemens died after 50 years of ser-vice with our Company. During the very Dr. Bernhard Plettner difficult period from 1941 to 1956, he was Chairman We supervised the management of the Chairman of the Supervisory Board of Company's affairs dunng the past fiscal Siemens & Halske AG and of Siemens-year on the basis of the wntten and oral Schuckertwerke AG. He will always be reports of the Managing Board. At our remembered for his great contributions regularly scheduled meetings, we dealt to the Company.
with the Company's business,its sizable As of March 20,1986, the Deputy capital investment program, and its Chairman of our Supervisory Board, financial situation.
Ferdinand Turek, resigned upon reach-We are satisfied that the Company's ing retirement age. We expressed our accounting records, the financial state-appreciation for his 20 years of service ments of Siemens AG and the consoli-on the Board.
dated financial statements as of Septem.
The vacant position on the Super-ber 30,1986, and the annual report have visory Board was taken over on that been audited and approved without same date by Helmut Reithmeier. Rudolf qualification by Deutsche Treuhand-Mooshammer was elected Deputy Gesellschaf t AG Wirtschaftsprufungs-Chairman.
gesellschaf t. Berlin and Frankfurt. We On July 9,1986, Prof. Dr. Karl Heinz concur in the results of the auJit.
Beckurts head of our Corporate Re-We have also examined the records search and Technology Division, was ourselves and the conclusive findings of killed by terronsts, together with his our examination reveal no grounds for dnver Eckha d Groppler.We held a objection. In view of our approval, the memonal service in honor of the de-financial statements are definitively ceased. Prof. Dr. Beckurts had been confirmed with the Company since 1980 and has We have endorsed the proposal of the earned its profound gratitude.
Managing Board that the net income On September 30,1986. Dr. Giselher available for distnbution be used to pay Kadegge retired af ter more than 35 years a dividend of DM 12 on each share of the of service. We thanked him for his work capital stock of DM 2.4 billion entitled to for the Company 5
Report saics by busia=$$==9==at DM 470 bmon-100*.
of the Managing Board
,. c-ts 26% Energy and General review Automation gInstallations and
. eect,.
Automotive Systems 19% communication and Information Systems
' 10% Medical Engineering
/18% Telecommunication Networks and Security Systems
/ 8% Power plant business
/ 4% Lamp business
- 3% Other 1985/86 L
Sales as forecast value of the German mark and by slug-Although the export bus / ness has be.
After vigorous increases in the last gish economies in many non-European come more di/// cult In cerfa/n sectors, two years (see graph, page 3), sales, as countries. Our systems business,in S/emens expects a substant/a/ sales had been expected, decreased to DM particular, suffered from deteriorating Increase dur/ng // scal 1986/87, to wh/ch 47.0 billion, or 14 % less than in 1984/85.
financial conditions in numerous oil and Kraftwerk Un/on AG (KWU) b////ngs w///
There are two main reasons for this: The raw materials countries.
now aga/n contr/bute, The graph shows power plant business and the drop in As overall sales declined, the differ-the share of the various segmentsIn the value of the dollar. Since no nuclear ences in the results recorded by our worldw/de sales during 19BS/B6.
power plants were billed during the Groups became more pronounced. The fiscal year, sales of Kraftwerk Union AG spread in their sales growth rates has tion in sales, which, however, was kept (KWU) shrank to about one-fourth of the grown wicier. Three Groups reported within limits. As a result of billing sched-previous year's amount. In addition, as increases over the previous year, one ules, KWU recorded the sales decline a result of the weakening of the U.S.
Group maintained sales levels, and two mentioned earlier. Sales of Dr.-Ing.
dollar, our sales in the dollar area were reported decreases. Most of them were Rudolf Hell GmbH were also below the considerably lower when translated into able to achieve respectable gains in previous year's level. On the other hand, German marks. These two extraordinary Germany, but international business the transformer business showed a factors reduced our sales by DM 10.5 grew relatively little, or in some cases modest improvement, and the lamp busi-billion. Sales in other areas, however, actually diminished.
ness once again achieved a remarkable rose by DM 2.9 billion, so that the net The strongest sales growth, an in-growth in sales.
decrease was DM 7.6 billion. Thus, with-crease of 100/0, again took place in the out the power plant business and the Communication and Information Sys-Reduced orderIn//ow anthmetical effect of the lower dollar ex-tems Group, with data systems continu-The softening of the international change rate, our sales continued to rise ing to provide the strongest impetus.
economy and the simultaneous rise in in 1985/86.
Medical Engineering sales were affected the value of the German mark reduced Domestic sales were DM 22. i billion, by the lower value of the dollar, but were the order volume. Nevertheless, new or 240/u below the previous year's figure, nevertheless significantly higher than in orders, at DM 50.2 billion, remained which was inflated by the final billing of the previous year. In spite of the persist-above the DM 50-billion level, although three nuclear power plants. Without ing slump in residential construction and we could not quite reach the record high KWU, however, we achieved a strong stagnating international business, the of DM 51.8 billion achieved in the pre-100/o increase in Germany - an indica-ElectricalInstallations and Automotive vious year.
tion that we took full advantage of the Systems Group also achieved a 30/o A brisk flow of orders came from our sales opportunities resulting from the sales gain. Although international busi-domestic customers. Although the improvement in the German economy.
ness is very important for the Energy bookings of DM 24.3 billion exceeded international sales were down slightly, and Automation Group, the substantial the 1984/85 figure by only 10/0, this was declining by 2% to DM 24.9 billion. This setbacks in this area were compensated entirely attributable to the slump in the is explained by the fact that our U.S.
by a vigorous leap of almost 200/o in power plant business. Without it, our sales, computed in German marks, were domestic sales. On the other hand, domestic orders rose by 100/o, reflecting reduced by 11% because of the lower the Te:ecommunication Networks and an increasing growth dynamic on the dollar exchange rate, although these Security Systems Group could not quite German market.
same sales, computed in dollars, rose by match the previous year's high sales, On the other hand, due to the slow-12%. Without the U S. business, inter-as its international business, which had down in the international economy, de-national sales remained at the previous shot up abruptly during 1984/85,re-mand from abroad slackened. We re-year's level, thereby falling somewhat turned to a normal rate of growth. In ceived a total of DM 25.9 (1984/85: 27.9) short of our expectations. Negative Components, shrinking worldwide de-billion in international orders, or 70/o less effects were produced both by the higher mand produced the anticipated reduc-than in the previous year. However, an 6
General review essential reason for this decrease was However, due to our expanded capaci-Cap /talexpenditures aga/n rose the drop in the dollar exchange rate, ties, the average reach of the production sharply. They were used maln/y to which caused a reduction of over DM 1 that the backlogs will generate has de-develop our growth sectors, including billion in our U.S. orders alone, although creased from 7.4 to 7.0 months. Capaci-o///ce and factory automation and on a dollar basis they increased by 20/0.
ty utikzation declined from 860/0 to 840/o. telecommun/ cat /on networks, as Orders from the oil-exporting countries we// as m/croelectron/cs as a bas /c were about DM 1 billson lower too, while Sharp r/se /n cap /talspend/ng technology. About one-th/rd was the inflow from other geographical To further consolidate our competitive app //ed to the manufacture o/new areas, on balance, remained more or position,we again made substantial products. One important Investment less the same.
future-oriented expenditures for new In the /ield o/ m/croelectron/cs /s the Since new orders exceeded sales, our products, new manufacturing facilities, Technology Bu// ding In Mun/ch for order backlogs rose to DM 55 (1984/85:
and the penetration of new markets. Our b/ polar ultra h/ph-speed log /c c/rcults
- 54) billion. Exclusive of the power plant total capital investment budget came to and the wafermasks used /n ch/p pro-business, orders on hand remained ap-DM 6.1 billion, almost half as much again duction. The Isc///t/es cost over proximately constant at DM 28 billion.
as in the previous year. We spent DM 4.6 DM 200 ml///on.
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General review Capital spending by business segment DM 61 bishon - 100%
17% Components
/13% Energy and Automation
/ 3% Electrical Installations and A
N utomotive Systems 14% Communication and g nformation Systems I
10% Medical Engineenng 28% Telecommunication Networks and Security Systems
/ 4% Power plant business 4% Lamp business 7% Other 1985/86 (1984/85: 3.7) billion on property, plant, assets and investments of only DM 5.2 Outlays for new products again played and equipment, and DM 1.5 (1984/85:
(1984/85: 4.2) bilhon.
a prominent part in our capital invest-0.5) bilhon to acquire shares in other in geographic terms, the majority of ment program, accounting for one-third companies. DM 1.3 billion of this amount our capital spending again took place of the increased expenditures for prop-was used to purchase majority interests in the Federal Repubhc of Germany.
erty, plant, and equipment. Five years in new subsidianes, which we consoli-However, the domestic share of ago, their share was less than 200/o. This dated. Since this inclusion, however, re-total expenditures declined to around is another clear indication of our intensi-suited in additions of or ly DM 0.4 billion 600/o. We made especially strong in-fied commitment to hnovative, sophisti-to property, p! ant, and equipment, the creases in our investments in neighbor-cated products and systems, which balance sheet shows additions to fixed ing European countries, where we spent more and more frequently entail the con-almost three times as much as in the struction of completely new factories. To Internat/onal bus / ness aga/n accounted previous year, due in part to the acquisi-strengthen our competitiveness, we also
/or more than ha//of totalnew orders.
tion of GTE activities in Italy and Bel-continued to expand our allocations for
/n Ind/a, with the support of strong lo-gium. During the fiscal year, we also con-productivity and efficiency improvement.
ca/ /nput, we succeeded /n /ncress/ng tinued to step up our investments in the About one-fifth of expenditures for orders by 700 to DM 630 m////on. A U.S.A. In addition to GTE's transmission property, plant, and equipment were l
/arge cement plant /n Andhra Pradesh activities, we acquired Potter & Brum-used to modernize and automate manu-has been equ/pped with Siemens auto-field, Inc., a leading relay manufacturer, facturing, distribution, and administrative I
mat /on equ/pment. The process se-and Pelton & Crane Comp., the second facilities. However, we spent almost as quences are mon /tored and controlled largest supplier in the U.S. dental much for expansion projects as we did l
on display term /nals.
market.
for these streamlining activities.
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General review Earn /ngs malnts/ned The main reason for our increased liquid-to the Annual Meeting of Shareholders Despite the decline in sales, net in-ity was an issue of U.S. dollar zero cou-to be held on March 26,1987 that this come for the year amounted to an al-pon bonds with warrants, from which we amount be used to pay a dividend of most unchanged DM 1.5 billion. As a received DM 1.1 billion.
DM 12 on each share with a DM 50 par result, the net profit margin rose from Shareholders' equity rose by DM 1.9 value of the capital stock of DM 2.402 2.80/o to 310/0. On the other hand, due billion to DM 15.1 billion, so that the (1984/85: 2.387) billion entitled to the to additions to capital accounts, the re-equity ratio-the proportion of share-dividend, and that the amount attribut-turn on shareholders' equity decreased holders' equity to total funds employed - able to treasury stock be carried for-from 12.3 0/o to 10,40/o.
climbed from 250/o to 260/o. This was ward.
Income was affected by high future-due mainly to a DM 1.8 billion increase in oriented expenditures in strategic reserves, resulting primarily from trans-growth areas. For the same reason, fers of DM 0.9 billion from net income, combined with the situation in the and from the value of the warrants at-components market, the Components tached to the zero coupon bonds, which Group failed to break even. All the other had to be allocated to our reserves.
Groups operated at a profit. The same was true of the major domestic compa.
Proposal /or allocatlon o/ net /ncome nies, with the exception of Transforma-aval/able for distr /but/on toren Union AG (TU), which, however, Siemens AG's net income available for continued to reduce its losses.
distribution amounts to DM 576,415,764 International results were, on the (1984/85: DM 572,815,764). We propose whole, better than in the previous year (see page 41). In fact, most of the local Siemens cornpanies reported a distinct Net income in per cent gain in earnings. Heavy charges were I
again incurred in the United States, 14 14 mainly as the result of restructuring pograms.
Substantialgainin fixed assets andinvestments 10 10 Due to the high level of capital spend-of shareholders' ing, fixed assets and investments 8
e@ity 8
showed a strong gain of DM 3.2 billion, for a total of DM 12 8 billion. Their share 6
6 in total assets rose from 180/o to 220/o.
Progress in the construction of large-4 4
scale projects also caused a sharp rise in inventories, which increased by DM 4 4 billion to DM 22.1 billion. However, 2
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they were financed in large part by ad-of sales vances from customers. Marketable sec-0 0
urities and liquid funds grew from DM s
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9
e General review e
Worldwide consolidated financial statements (condensed version)
Balance sheet Statement of income (in millions of DM)
(in millions of OM)
Assets
+ M in> 9/30/1985 Shareholders' equity 9 0 0 1'366 9/30/1985 1985 86 1984/85 and liabilities Property, plant, and Capital stock Net sales 47,023 54,616 equipment 9M 8.019 of Siemens AG 2 402 2.387 Additions (4 4W) [ + 3,702]
Depreciation /
General reserves 11.906 10,197 Change in inventories retirements
(-3014} [ - 2.215)
Additional
+ company-produced Investment in shares paid-in capital additions to plant and other secunties 1.157 1,141 from nghts issues (1 017]
[1.017) and equipment 5211
- 971 Additions
!+
213] [+
448]
from other Wntedowns/
capitalissues
[3 4001
[2.574] Total operating divestments
{
203) [~
112]
Retained earnings (7.543]
[6.606] performance 52,234 53,645 Loans 31 24 Menonty interests 76 7 683 Ad ustment resulting i
from consolidation i G14 386 Shareholders' equity 15.135 13,267 Employment cost 21281 20,426 Cost of matenals 21 200 20,728 Fixed assets and Depreciation 2 E67 2,110 investments 12 805 9,570 Special reserves C9 105 Taxes 1594 2.275 Equipment leased Provision for including income to customers 1 044 1.014 pension plans 9 329 8.792 taxes (1229)
[1.928)
Other provisions 14 520 14 $
Other expenses inventones 22 13' 17,763 net of non-operating including cost of Provisions income 3 S18 6 578 unbilled contracts
[12?f] [ 8.586) inct specialreserves 24,477 23,179 Less - advances Total expenses not of from customers u 01 - 11.066 non-operating income 50,760 52,117
/<
6 697 Borrowings 4 t5 >
3 269 according to Net income 14/4 1.528 Receivables and actual matunty.
additional assets t4 W 14 320 long-term (t1531
[1.306)
Bafance brought forward 1
e medium-term 11 < 3 71
[ 994)
Marketable secuntfes short term (166l
[ 969) Transfer to retained and loin notes NC 19.324 Additional liabilit es 11 %
11 853 earnings N
929 M'nority interests Liquid funds 1M 1216 Liabilities 18,143 15,122 in net income 19 26 Unappropriated not Unappropriated not Current assets 45.526 42.571 income consolidated 570 573 income consolidated 576 573 58.331 52,141 53 331 52,141 10
Employees i
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Newfobs andnew sk/1/s young people in cooperative programs knowledge they need to take on special-With new products and new pro-for other companies. for employment ized assignments in manufacturing.
cesses to consolidate our competitive offices, and for vocational advancement We organized over 12,000 (1984/85:
stance and market position, we again services.
9,000) continuing education courses for created new jobs At the same time, job in the course of the year, high school our employees during the fiscal year, descriptions and work processes at our graduates of both sexes showed an with a staff of 700 teaching professionals plants and offices are changing. So are increasing interest in our manufacturing and 3.000 part-time instructors. The the qualifications our employees must training program. We have therefore set modular components of the programs possess, and, as a result, the structure up an initial series of special programs are also used for decentralized training of our work force. Since the early 60s, at three locations for this group of appli-at various locations in Germany and the ratio of wage earners to salaried cants. In Berlin we offer a curriculum for abroad. They cover both technical and employees at Siemens AG has changed trainees in precision mechanics, with ad-commercial topics, as well as training in from 20:10 to 9:10; the proportion of ditional courses designed to permit their executive skills and the encouragement graduates of universities and institutes subsequent assignment to flexible man-of creativity. In all, Siemens AG spent of technology in the total work force has ufactunng systems. In Munich we are DM 261 (1984/85: 242) million for train-nsen from 90/o to 200/o.
training information electronics techni-ing and an additional DM 458 (1984/85:
cians, who will subsequently be placed 352) million for continuing education.
363,000 employees in demanding jobs in assembly, service, Af ter we had created 20.000 additional and other departments. Future technical Afore flex /ble work /ng hours jobs throughout the world in the previ-assistants are receiving training in com-Mounting expenditures for new tech-ous year, the work force rose further by puter sciences in Frankfurt. They, too, nical processes, facilities that must be 15,000, bnnging the total to 363.000. The are being provided with the expert operated on a continuous basis, and our domestic work force increased by 9,000 to 249.000, the international work force 4 :!
by 6,000 to 114.000. We thus remain Eu-
"d rope's largest private employer, and also A
rank worldwide among the companies offenng the largest number of jobs.
,%3
,>z l
Training for future ass /gnments During fiscal 1985/86 we signed Y' 4 -
~~
8's apprenticeship contracts with 5.030 4
(1984/85-5.170) young people. 2.930 are prepanng for a manuf actunng career, 7
_,s 640 for a commercial career, and 290 for s
f a technical one. We are training 1,170 t.?
A growing orientation toward the world t>
market places greater demands on the foreign language skills of our employ-ees, Our widely diversified training pro-gram includes language courses at the Company's training centers. We spent a totalof DAf 719 million on training and continuing education.
11
Employees Changs in employment profile in percentages of the total work force of Siemens AG 23% Skilledworkers 20%
e C
N?
!R f
f 3
s k
%,, Technical staff 32%8 h-i
., ~en. -,.,.
n eras M
D, 1962 1986 employees' desire for a more flexible Following our initial experiences with used to facilitate the integration of new concept of worktime have obliged us to model systems to make working hours employees.
offet and design new structures in addi-shorter or more flexible, we have initi-tion to the traditional single and alternat-ated a research project to examine their Further dect/ne In work acc/ dents ing shif ts. This appkes not only to capi-various effects, so that we will be able Technical developments, particularly tal intensive manufacturing plants, but to offer the most attractive working con-the use of microelectronics, together also to development departments where ditions consistent with our operating with our 200 safety experts and 80 com-speed is of the essence, and customer-requirements.
pany physicians, have kept the number oriented service operations.
of work accidents at Siemens AG gratify-We have made increasing use of the More employee suggest/ons ingly low. With less than eight such acci-l opportunities that became available to andin/t/st/ves dents for every 1,000 insured employ-l us in April 1985 under the collective During the fiscal year, Siemens AG ees, we are 700/0 below the average for l
bargaining agreements to introduce a received 79,000 (1984/85: 68.000) em-the companies covered by our industry's I
limited degree of flexibility in our work ployee suggestions, for which we paid workmen's compensation insurance.
schedule. Some plants have included DM 13 2 (1984/85: 11.7) milhon in cash Saturdays in their workweek. At our awards.
Shares at s pre /orent/a/pr/ce megachip factory in Regensburg, whose At numerous locations, " Junior Em.
Since 1969 we have been offering our technology requires three shifts every ployee Circles" composed of engineers employees Siemens shares within the day of the week, we were able to make and commercial personnel have been statutory limits at a preferential price. An an arrangement under which five groups formed. Employees meet here to dis-employee who has made full use of all of employees each work for six days and cuss possibilities for improving in-house the offers and subscription rights owned then take four days off, cooperation. The se initiatives are also 115 Siemens shares at the end of the fiscal year, with a market value of about Employees in inousands tat September 30,1986)
DM 80.000.
Siemens 363 Thanas to our employees Siemens AG 210 15 Components We thank our employees and execu.
43 Energy and Automation lives for their withng effort and their ded -
9 Electricalinstallations and cation Thanks go also to the members Automotive Systems of the Joint Employees' Council and the 28 Communication and Information local Employee Committees. Even when Systems 10 Medical Engineering interests differed, their objectivity and 31 Telecommunication Networks and cooperation made it possible to solve Secunty Systems the most difficult problems.
46 Regionaloffices 12 Corporate Divisions Ifi Temporary student labor and trainees Domestic Siemens 39 r' companies 3
Siemens companies 114 57 Europo without FederalRepubhc abroad of Germany and Berlin (West) 18 North Amenca
- 19 Latin Amenca 6 Africa 14 Asia and Austraha 12
Corporate structure t
Kraftwortt Union AG Groups owem GenH Electrical Communication installations and and Information Automotive Systems Systems s
Hell GmlM otate Div' -
go Traneformatoren Energy Medical Union AG and Automation Engineering 375 other Siemene componese Telecommunication Componente Networks and goeoh.Siemens
- * " ' " ' * " ' ' ~
w
~..
f
/ 12 regional Siemene g,,,
offices in t%
- companies, Elektricitets-Federal Republic local and.
Werke AG of Germany liaison offices.
and Berlin (West) and agencies s
in 127 countries 343rlOmtM 99 0ther sesociated companies **
inU. fs*[EE In h2*'l.Ie$t Ee'Ye'st 13 a
Components Group saies '" e"'>e e' o=
/ntegrated Circults D/screte Sem/ conductors 2.8 Pass /ve Components y_4 Electron Tubes 2.0 1.6 e-1.2 08 04 Heavy advance expenditures a
2 2
for microelectronics 2
Slach demand andplummet/ngpr/ces the slump in the semiconductor market Work on the next generation in this for s tandard sem/ conductor circults on our business. On the other hand, the technology. whose distinctive feature prevented a recoveryin the compo-lower value of the U S dollar caused a is the 4M-bit memory. is proceeding nents market. We, too, were affected shrinkage of our sales in the dollar area on schedule in collaboration with Philips.
by th/s trend, with a s//ght dec//ne /n when translated into German marks and The initial test circuits are already on new orders from DM 2.5 to DM 2.4 b//-
intensified the pressure on prices in hand.
//on and /n sales from DM 2.3 to DM 2.2 markets outside the U.S A.
An important event was the introduc.
bl///on. The Group accounts for about tion of our telecommunication chips for 54o of totalSlemens sales, in add /t/on, IM-b/t ch/ps from Regensburg public and pnvate exchanges. which appros/mately DM 700 (1984/85: BOO)
Integrated semiconductor circuits and meet the standard for the integrated m////on worth of components were sup-small-signal semiconductors account for services digital network (ISDN). We p//ed to other sectors of the Company, a good 500/o of our components sales, were the first manufacture in the world Ms/nly because of the megach/p The year's most important development to present samples of these integrated pro /ect, cap /tal expend /tures were In-was the production at our new Regens-circuits. We have also expanded our creased from DM B50 to DM t,0J0 m//-
burg factory of the first VLSI memory product line for television applications.
//on. We ant /c/pate that demand will chips using CMOS technology, with a Our chip set for videotex can now handle cont /nue to be weak during 1988/87.
capacity of 1 million information units or five European languages.
" bits." These chips can store the con-Standard integrated circuits - semi-tents of 64 typed pages on a silicon sur-Sem/ conductors rang /ng conductor memones, for example - not face of only 54 mm'. The first samples. in from p/cowatts to megawatts only account for a large proportion of the standard IC packages, will be supplied Our spectrum of small-signal semi-market, but are also a key element in the to customers at the beginning of 1987.
conductors can amplify or switch signals transition to each new generation of chips. Siemens is one of the companies producing them in substantial volume.
However, our fundamental business e
strategy is to develop and produce
(',f
^
7
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circuits tailored to specific applications.
.Y' We are one of the few competitors in the worldwide components market with the j
I systems expertise required to achieve 77m.,1 this goal Our concentration on application-p'
+
s specific circuits mitigated the effects of I"
I M/croelectron/cs sets the pace for new >
b products and systems. Manufactur/ng
- j-y I
f c
- k. f operat/ons have begun at our new fac-toryin Regensburg with a t megabit chip wh/ch is the standard main memo-
- e. l,i
?
ty component of the computers of the
~,
future. Th/s ch/p's structures requ/re a Yf resolut/on of 1.2 thousandths of a m//-
er Q
/Imeter. We are one of the few manu.
I b
- ?
facturers produc/ng these memories.
14
over a range extending from 10"' to 10'
~ p4 watts Satelhtes emit signa!s measunng
'fr
.'y only a tnlhonth of a watt; in order to re-1 T
g I
ceive them properly, we have improvud l
1 the noise characteristics of our micro-(
/
wave transistors if high-speed trains are 4' q /
to start smoothly, many millions of watts
/.
w r s
must be controlled. Our new thyristors take only 25 millionths of a second to switch the current in the drive motors.
g Among our optical semiconductors
,g 4
are new LEDs which use only half as j
y much power to produce the same amount of light, as well as laser and
\\
I photo diodes on an indium phosphide Y
basis that make new frequencies acces-sible for the fiber optic telecommunica-
/(: -
4 tion networks of the future.
g Power capacitors -
}
f more compact than ever be/ ore I,.
3 We expanded our position in passive components, which represent about a
one-fourth of the Group's sales. New The des /gn o/ complex sem/ conductor semiconductors will be put into opera-additions to our line of surface-mounted circults, which used to be a t/me-tion in the U.S A. In Munich, we are start-capacitors were particularly successful.
consum/ng process, Is behg steadily ing up a pilot plant for bipolar circuits We have simplified the power-factor systematlied and automated. Our with ultra-high-speed logic functions. A correction in three-phase systems Our celllibrarles, wh/ch we are expand /ng new facility in Heidenheim is producing extremely compact power capacitors fo/ntly w/th Toshiba and General surface-mounted components. Total now contain the requisite three capaci-Electr/c, maAe It poss/ble to convert capital expenditures will approach the lances in one concentnc winding By this ent/re systems qu/cA/y and re// ably Into level of the previous year. At the same means we have reduced them to two-
/ntegrated c/rcults. Our Venus des /gn time, we shall continue to expand our thirds their former size and one-half their system /s also used /n inst /fut/ons distribution activities and customer former weight o/ hlgher educaflon, for /nstance at consulting services. The geographical Sales of electron tubes and gas lasers the Un/ vers /ty o/ Erlangen.
spread of our organization will be increased. Noteworthy products include extended. particularly in the U.S A.
our family of traveling-wave tubes for Heavy Investments to cont /nue With our broad spectrum of compo-digital radio relay transmitters, which The worldwide components market nents keyed to long-term growth areas have enabled us to expand our leader-will grow only slightly dunng the current in electronics and our improved and ship position in the U S market We have year. We shall continue our pokey of enlarged production resources, the recently added green hehum neon lasers making vital contnbutions to technical chances are good that we will continue to our spectrum of gas lasers They can progress in growth sectors, regardiess to outperform our competitors dunng be used. among other things, to provide of the preva6hng bustness conditions the current fiscal year.
color contrast when imagtng the opera-Dunng 1986/87 new manufactunng tion field dunng medical examinations.
lines for ga! hum arsenide and sikcon 15
l Energy and saies in eiiee ef ou Automation Group Power Generat/on and D/stribut/on Transportal /on and Publ/c Author /t/es p
Instrumentat/on and Control 10 Das/c Industr/es 0
Alanufacturing Industries l
Standard Products 6
1 Factory Automation Systems and Industrial Electronics 4
2 Growing demand from
~
Germany and Western Europe 2
- ae:
e The posit /ve /n/luences on our bus / ness The main reasons were the plunge in oil tile array of services for every job related we/ghed equally agalnst the negat/ve prices, the weakness of the dollar, and to energy and automation.
ones. Favorable econom/c cond/t/ons the debt problems of the newly industri-In Germany and Westem Europe were alized and developing nations. Declining Automat /on systems counterbalanced by a sharp decl/ne /n foreign currency revenues led to severe take on a cruc/st role demand from overseas markets Our restraint in the awarding of large-scaie Instrumentation and automation sys-bus / ness volume was also affected by contracts in key markets. The dollar ex-tems are playing an increasingly crucial the weakness of the dollar. New orders change rate also reduced the contnbu-role in many branches of industry. They decreased by 5% to DM 12.7 bl///on.
tion made by our U S. company Siemens are indispensable not only for the ;ontin-Sales tems/ned at the prev /ous year's Energy & Automation,Inc., Atlanta, uous processes in power plants, power level of DAf 12.0 b////on, with contr/bu-Georgia, and by some other companies distribution systems, and the steel and tions from the seven D/v/s/ons rang /ng abroad. In terms of DM, new orders petroleum industries, but also for the from about DAf f b////on to over DM2 decreased by around DM 1 billion, or discontinuous production cycles used b////on. We are the largest Slemens 80/0, due to the foreign exchange fluc-to manufacture home appliances, auto-Group, w/th a share o/26% in total tuations.
mobiles, or aircraf t. The advances made sales. Cap /tal expend /tures amounted in microelectronics and information to DAf 800 m/Ilion, as in 1984/85. We Comprehensive array processing have resulted in a wide of roducts and serv /ces variety of sophisticated automation expect sales to grow by 6% during P
the current year.
Our Group, which is divided according devices: Controls for machine tools to industries and products, is active and robots, process control systems, Several of our markets continued to throughout the world with its products, proce ss compu ters, multi-mic rocomputer show a strong interest in capital invest-systems, and complete facilities for systems, and stored-program controls ment during the fiscal year. Exports to industry, utilities, transportation, and for the most diverse applications.
the Western European industrial coun-pubhc authorities. Our manufactunng Communication networks spanning tnes, particularly Italy, France, and program is correspondingly broad and the entire production plant handle the Great Bntain, recorded vigorous growth diversified. It extends, for example, from exchange of information among the au-rates. Domestic orders also increased a miniature motor with an output of a tomation equipment. In order to permit to a gratifying extent. Sizable contracts few tenths of a watt to a rolkng-mill motor an unkmited selection and utlhzation of were signed with automobile manuf ac-with several million watts. In switchgear, machinery, the network must remain turers and the chemical and electncal it ranges from simple relays to 800-kV engineenng industries We again re-circuit breakers and includes the entire ceived extensive orders from mechanical spectrum of instruments and automation A ma/or port /on o/ our cap /tal expend /- t>
engineenng manufacturers, especially in equipment.
tures, amount /ng to DAf 800 million, /s the machine tool sector. Our automation With this wide assortment of prod-being used to modern /te ourp/ ants.
systems were the chief beneficianes of ucts, manufactured in twelve plants in The primary s/m /s to automate the the upward trend in industnal business the Federal Republic of Germany and production systems and maAe them Orders from electric utikties were Berkn as well as in 35 factones abroad, more /lexible, so that they operate focused on power plant instrumentation we are one of the world's largest supph-more econom/cally and respond even and controls and flue gas desulfunzation ers of products and systems. But we better and / aster to our customers' facihties Sales of electncalequipment also take on the planning, engineenng, requ/rements. The p/cture shows a for rapid transit systems also made good and assembly required to equip and au-h/ghly automated assembly //ne In our progress tomate complete facihties of every size.
Amberg plant. Each year on th/s I/ne, Business with oil-expo; ting. Eastern We thus regard ourselves as " universal-robots assemble f.2 mil //on stepp/ng bloc, and overseas countnes was in ists"in terms of our product spectrum devices /orprogram controls of sharp contrast with this positive trend and as " problem solvers" with a versa-household appliances.
16
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Energy and Automation Group Variable-SpSed driv 3S World market in billions of DM O
8 AC drives.
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DC drives 2
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"open." Open communication of this A growth sectort drive technology breakdowns, and dimensionally more kind requires international standardiza-The more machines and facilities are compact. They are particularly well tion of interfaces and communication automated, the greater the nuinber of suited for use in harsh environments, protocols. It is part of our strategy to drives required for this purpose. Espe-such as those encountered in paper fac-promote the worldwide acceptance of cially high growth rates are being posted tories or steel and rolling mills, and on open communication and to make it for drives with electrical speed controls railroads. Other important applications available for the benefit of our custom-(see graph). In recent years we have are to be found in the man-made fiber, ers. At the same time, this concept is carved out a leading international posi-textile, and printing industries. We con-paving the way for a broader use of our tion in the field of variable-speed drives.
tinued to expand our leading position in automation systems on the world mar-Dunng the fiscal year, our business vol-dnves for machine tools on the Western ket. Our engineers are therefore working ume again increased by 250/o. We ex-European market.
intensively in the national and interna-pect that growth in 1986/87 will continue tional standardization committees. We to outpace the market trend.
Steadygrowth are heading the group which is drawing Up to now, DC motors, of which we in engineering services up the communication protocols for the offer a complete assortment, have domi-When equipping and automating com-European CNMA (Communications Net-nated the market. In the future, however, plete facilities, we act as " problem solv-work for Manufactunng Applications),
we are looking forward to an above-aver-ers" to meet the specific requirements an Esprit project, and we were the first age sales increase for vanable-speed AC of our customers. At every point in the European manufacturer to participate drives. AC drives are distinguished from planning, construction, and start-up of in the American MAP (Manufacturing their DC counterparts by the motor turnkey facilities, a steadily growing Automation Protocol) project.
which is more sturdy, less susceptible to component of engineering services must
~
W Afedium-sizedIndustrialoperations are v taking increasing advantage of the a:
m
,~
opportunities afforded by automation.
f C
We supplied the complete controland a'
~"
automation equipment for a new
~-
bottle-filling system at Apollinarls
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Brunnen A G In Bad Neuenahr. With an hourly capacity of 80,000 bottles, it is the largest filling system for returnable bottles in the world. The instrumenta-tion and controls ensure maximum throughput, low wear and lear, and
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minimalbreakage, while reducing the noise burden on the staff.
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be supplied Our many years of experi-Clos /ng the t/me gap between Idea and capital investment, combined with our ence in providing manufacturing and product /s one of the goals of comput-time-tested technical solutions, should process technology for every branch of erIntegrated manu/actur/ng (C/M), /n result in a strong order intake from tha industry and in automating our own add /t/on to h/pherproduct/v/ty and //ex-automotive industry. Demand from the plants has put us in a position to offer
/b//ity, C/M requ/res the complete Inte-chemical and electrical engineering perfectly tailored, tested solutions. For graf/on o/ a/l the necessary product /on industries will consolidate, while steel planning and implementation we use steps, / rom computer alded des /gn, manufacturers are likely to reduce their efficient computer-aided tools and ca/culat/on, and development, through purchases. The weak dollar will have an methods, which relieve our engineers product /on plann/ng and control, down inhibiting effect on our indirect export of routine work, while ensuring high to the manu/acturing automat /on level.
business.
quality and reasonable cost.
For th/s purpose, our S/nec local area Although trends in individual areas networks prov/de a qu/ck and re//able continue to differ sharply, there is no Automat /on even /or means of exchang/ng a// the relevant indication of a substantialimprovement sma// and med/um-s/ zed operat/ons Informat/on.
in orders from abroad. Our advanced in small and medium-sized operations technology will enable us to maintain as well as large ones, automation equip-H/ph cap /talexpend/tures our position in Western Europe and in ment increases production efficiency to modem /ze product /on some cases even to iroprove it. On the and guarantees uniform product quality.
Capitalinvestments of almost DM 410 other hand, stiffer price competition For every job and every stage of automa- (1984/85: 330) million were used for the and financing problems will probably tion, we offer the right products and sys-continued modernization of our domes-cause orders from many overseas and tems for the concepts developed jointly tic plants, with the main emphasis on Eastern bloc countries to decline. Over-with the customer by engineers and automation and flexibility in the manu-all for the 1986/87 fiscal year, we expect assembly experts. Proven, up-to-the-facturing systems. In W0rzburg and that sales, including billings for orders minute drive and process technology Bad Neustadt a.d, Saale we built new from previous years, will increase by l
has made its way into printing and textile factories for small motors and variable-60/0.
plants, lumber and paper mills, and every speed drives. Capacity expansions sector of the food industry.
at our electronics plants in Erlangen As part of our comprehensive service and Amberg will assist our growing concept, more than 1,000 employees in automation systems business. These the worldwide Regional Field Service are modernized plants wili thus be able to directly ava lable to our customers at 53 respond to customer requirements even liaison offices in 43 countries. They are better and faster in the future.
supported by systems specialists at our service centers through the Teleservice Restra/nedgrowth forecast remote diagnosis system, which can The growth ct the world markets establish a connection with the custom-served by the Group will fall off slightly er over the pubhc telephone or data during the current fiscal year, to 3 0,0 or l
network.
40/o in real terms. We take a cautiously Our central spare parts department in optimistic view of the trend in Germany.
j Erlangen offers worldwide rapid service but anticipate that growth rates will be around the clock lo case of a break-lower than in the previous year.
down, spare parts will reach domestic Our outstanding automation tech-customers in half a day and foreign cus-nology should continue to bring us sub-tomers, under ordinary circumstances.
stantial orders from the mechanical within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br />.
engineering sector. Sustained interest in 19
r Electrical installations and saies in e,iiions of ou 40 Automotive Systems Group 3,
ns al a lon Equ/pment and L/ght/ng Systems Electricity Meters and Heat /ng/ Alt-Cond/t/oning Systems 25 Automotive Systems 0
Wholesale Business and Electrical Contracting 1.5 1.0 0.5 Full speed ahead with automotive electronics eeeeee Repercuss/ons from the stagnat/on of product spectrum the high technical Growth /n the renovat/on market the construction market /n ourpr/nc/-
quality of everything we manufacture, For the renovation, rebuilding. and pa/ customer countr/es, the drop In o//
the development of new distribution modernization market, which now con-I pr/ces, and negat/ve exchange rate e/-
strategies, and close contact with stitutes over one-third of the entire con-l
/ects posed problems for our bus / ness customers.
struction volume and is growing steadily, both at home and abroad. By compet.
As demand from new starts in the we offer our customers a range of prod-ing v/gorous/y in the markets for bu//d-construction industry continued to be ucts which, because they facilitate plard l
Ing-related products and concentrat/ng weak, we concentrated increasingly on ning and installation, give us distinct more /ntens/vely on automot/ve elec-the renovation market and on our indus-competitive advantages.
tron /cs, we aga/n ach/eved a totalof trial customers. The cable business grew The " Infra-Fern" remote control DM J.2 b///lon /n new orders. Sales grew slightly, despite the difficult market con-system with its versatile components by about J % to DM J.2 bl///on, or 7%
ditions. Without neglecting our tradi.
is particularly suitable for integration in of the Company's totalsales. We /n-tional fields of activity, we responded to a wide range of equipment. The " Delta-creased our capitalexpend/tures by growing demand from automobile manu-Fern" remote control system consists f2% to DM fB0 m////on. For the current facturers by accelerating the expansion of a range of transmitters and receivers
//scalyear, we are look/ng /orward to a of automotive electronics. Sales in this for a multitude of switching and control 5% ga/n /n sales.
area have been showing an annualin-duties in commercial and residential crease of over 300/o for each of the last buildings. The leads for the switches are Dunng the fiscal year we further five years. Our intensified commitment is therefore no longer required.
consolidated our position as a leading also reflected in the Group's new name:
Our new CS 300 lighting system manufacturer and supplier of electncal "ElectricalInstallations and Automotive has also met with an extremely positive installation products and cables of every Systems.'
response. Because of their small size possible size. The automotive systems business proceeded according to plan, f
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I '
.I posting high growth rates.
.),,
g(
Jg In terms of fields of activity, more than Jq
'j half of our sales is attnbutable to build-M e
ing service technology, about a third to f) cables, and approximately one-sixth to automotive systems.
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Our success was based on our broad k hi b8j
$1 f-Am lQ;f{j We are devot/ng special efforts to au.
Q tomotive elec tronics, a growth sector Q * ='
for which we offer about 300 products g
M and systems. They control an /ncreas-Ing number of functions in the auto-L% l mobile, reduce pollution, and promote t
<,/.4:qfi traffic safety and economy. We are.
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counting on growth rates of over J0 %.
F The picture shows an electronic circuit
' %i 29,
being designed /n the development 1
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a leading position in the world market.
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over this single cable.
tion to the constantly growing impor-
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and instruments, but also in switching through "I Centers" and control devices.
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automobile manufacturers - our elec-our products on the market. The "I Cen-tronic components will contnbute to fur-ters" are a vital element in our strategy ther advances in the quality, safety, and of operating w:th maximum flexibility and ics Our overall spectrum of automotive environmental compatibility of vehicles.
in the closest possible contact with our products includes heating and air-condi-The introduction of numerous products customers. Established at convenient tioning systems, winng harnesses, elec-and systems, some of them with com-commercial locations, they will stock our tronic ignition control systems, on-board pletely new functions, will lay the founda-entire line of installation equipment. con.
computers, sensors, electronic body tion for an anticipated sales growth of sisting mainly of Siemens products, but components, and dnve and transmission over 300/0 in this field dunng the current also supplemented by parts from other controls. We have begun to desetop a fiscal year.
manufacturers Our customers-usually complete electronic engine control electncal contractors - can cover all system of our own.
H/pher cap /talexpend/tures their requirements for building installa-We will sharply increase our capital ex-tion products and systems from an Con //dence predom/ nates penditures in 1986/87 Most of the funds exhaustive selection We expect that a slight improvement will be used to expand our factories and in demand for electncal installations facihties for the automotive business.
300 electron /c automot/ve products equipment will already occur dunng the Overall we expect a growth rate of Our business in the automotive sector current fiscal year. In addition. we shall about 54 is expanding in parallel with the increas-make intensive marketing efforts with ing use of electronics in cars We now attractive, high-quahty products which offer automobile manuf acturers about are well designed and easy to install,in 300 different electronic products and order to expand our business We shall systems Our objective is to penetrate also rely on such outstanding devices as every automotive apphcation of electron-our miniature circuit breakers and earth-21
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Communication and saies ie biiilee of ou 12 0 Information Systems Group
,;5 Communication Terminals 99 Private Communication Systems and Networks Data Systems 7.5 6.0 4.5 30 1.5 Strong growth a
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ee8 After the previous year's powerful ex-of our product line at both ends. The data processing is gaining steadily in pans /on, the market for commun/ cation 3.500 Siemens BS2000 systems installed populanty. It is compat ble with all the and /n/ormat/on systems exper/enced a in Europe attest to our leading position.
numerous software programs available s//ghtloss o/ momentum and /ntensl.
Our PC-2000 personal computer per-throughout the world for Unix systems.
//ed compet/t/ve pressure. We success-mits low-cost entry to data processing By the end of 1986 we had installed fully mainta/ned our pos/flon, /ncreas-based on the BS2000 operating system, about 10,000 Sinix systems with 25,000 Ing orders by 10% to DM 9,f b/Illon and Even if our customers' requirements rise workstations, making us leaders in the sales by t04'o to DM B.7bl/I/on, The to about 200 times the original capability Federal Republic of Germany.
l Group broughtin about 194'o of total of their systems, they can continue to Through the addition of an in-house Slemens sales. In addit /on, enu/pment use the same application software.
optical waveguide network, our 5800 with a value of about DM 900(f984/85:
For the first time, orders from the Ger-Office System with its high-resolution 800) ml/Ilon was supp/ led to other sec-man banking industry exceeded DM 500 screen and local and central memories fors of the Company, Dur capitalex-million. Our most important order from and printers has become even more pend /fures amounted to some DM 850 abroad was obtained in the People's powerful. It offers interference-free con-(f 984/85: 980) mill /on. We Intend to Republic of China, against the keenest nections among office systems over dis-ach/ eve another substant/al sales /n.
International competition. We will supply tances of up to three miles. Text, graph-l crease during the current /Iscalyear.
18 of our 7.570 general-purpose com-ic, and layout functions make the system puters, as well as data display terminals, ideal for the preparation of documents.
The Grnup's strongest growth rates graphics systems, and personal com-service manuals, or catalogs.
were again posted by the Data Systems puters, with a total value of more than Division for general-purpose computers DM 50 million, to universities.
Every ///th laserprinter and workstation computers, although the comes from Slemens European market was subject to acute More processing capab///ty Powerful general-purpose computers price pressure as a result of the lower at the workplace require adequate peripheral equipment, value of the U.S. dollar. The Communi-Industry, commerce, and public particularly printers and storages. We cation Terminals Division expanded its administration are demanding personal improved our market position with high-business with such standard products computers at more and more work-performance laser printers: Of the as feature telephones, telepnnters, places,in order to expedite and simplify world's laser pnnters, one out of every and personal computers. We are doing the work cycle.
five comes from our production lines.
a rapidly growing business with our We have added the PCD-2 to our fam-Our equipment can now pnnt continuous Hicom ISDN communication systems ily of PCs using the MS DOS operating paper on both sides in two colors. This for business and publo administration.
system. It has an 80286 microprocessor, opens up new applications, such as the in spite of the unfavorable exchange is AT-compatible, and can process all rates, we confirmed our position in the the programs that are available for this Mult//unctionalequipment, which can b front rank of the worldwide suppliers of class of personal computers. An auxil-be used to telephone, write, retrieve laser pnnters lary plug-in card makes it possible to data, or transm/t text, w/// characterlie form a network of up to 16 units - an the ol//ce of the future. ISDN eommun/.
OS2000 contract / rom Ch/na effective support for work groups that cat /on systems, which transmit not The mainstay of our DP equipment must have common access to data and only vo/ce, but also text, / mages, and business - the Group's largest segment, events.
data, w/// be needed to prov/de the accounting for about half Its sales ~
central switching station /or th/s equip.
is our 7 500 family of general-purpose German market leader ment. We have already installed more computers, which use the BS2000 op-with S/ nix systems than 300 H/com systems, including th/s crating system. We have added eleven Our family of multi terminal computers one at DdrAoppwerAe GmbH Nah und new mainframes to extend the capability with the Sinix operating system for office fordertechnik, B/elele/d.
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Communication and Information Systems Group WOrld market for communication and information systems in billions of DM 2,000 t,600 1,200 800 400 0
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pnnting of service manuals and catalogs most important part of our business. We standards, it offers two channels for si-at in-house printshops or the printing of have signed licensing agreements with multaneous transm!ssion. During a con-paperback books 12 public and pnvate companies in India.
versation one party can send the other The People's Republic of China has text, images, or data. Central servers Stepped up growth for telefax placed initial and licensing manuf actur-control connections to public videotex, Communication terminals account for ing orders for annual purchases of up to telex, or computer networks about one-fif th of the Group's business.
300.000 standard telephones. We and Following Austna and Switzerland, Our telecopiers recorded above average our licensees manuf acture over four which have already installed their first growth rates in the Federal Republic of million telephones a year.
systems, the Australian postal admin-Germany, with the order inflow increas-istration has now issued a permit for ing by almost 504o. We maintained our Hicom enters the world market Hicom. A special boost is denved from position as a worldwide leader in tele.
A solid fourth of the Group's business the Parlakom communication and infor-pnnters At the end of 1985, the consisted of pnvate communication sys-mation system of the German Federal 500,000th electronic teleprinter lef t our tems and networks. Of specialimpor-Parliament and its parties The options Berlin plant.
tance is the rapid growth in orders for offered by Hicom will be the basis for The European market for pnnters om.
our Hicom ISDN communication system.
communication among the parlia-ploying the virtually noiseless inkqet To date, we have received orders for a ment's members and administration.
ponting technology grew by more than total of 700 systems.
In countnes that have not yet set a 500/o. Our ink let pnnters have made a Hicom has produced an extraordinary date for the introduction of the ISDN, we major contnbution to this trend.
expansion in the range of possibilities are offering our EMS 601 digital commu-for communication In accordance with nication system. Through Norton Tele-Four million telephones a year the internationally established ISDN communications Group plc, London, Users of the worldwide telephone not-work are demanding telephones with an increasing number of features We have m
responded to this trend with a great l
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demand, since its introduction in the
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anter for their customers and reduce administrative costs. Our new point-of-sale terminal also makes life easier for the clerk. It reads the bar code on the packaged goods, prints a detailed receipt, and simultaneously records the changes in Inventory.
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a distnbution company in which we re-cently increased our share from 280/0 to 99 0,0, we have already won 100/0 ofthe Ontish market for medium-sized commu-nication systems. We received follow-up we contracts for the EMS 601 from Australia and booked our first order from the People's Repubhc of China.
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b The rapid pace of innovation and a than 100 o a year for communication and information systems will necessitate
- y g, great efforts in the next few years to consolidate and expand our marke' po-tion activities in Great Bntain to data puters. and the new factory at Poing sition in addition, we must reckon with processing equipment. We are intensify-near Munich for mass storage units the uncertain evolution of the U S. dollar ing our efforts in the U S.A, with particu-and laser pnnters.
exchange rate. which can cause severe lar emphasis on digital communication Our development laboratones will be shif ts in the market opportunities for sys' ems.
concentrating primanly on computer suppliers from different parts of the technology, including software, commu-world We expect positive influences on C8Pltalexpend/fures today nication terminals, and networking. By the market to stem pnmanly from the for growth tomorrow the stepped-up use of CAD (computer widespread acceptance of the ISDN in Expanding our manufactunng capaci-aided design) systems, we shall con-the U S A and many other countnes and ties and equipping them with the latest tinue to shorten the lead time between from the increased use of the OSI stan-production processes are crucial pre-ideas and products, while simultaneous-dards, which make it possible to inter-requisites for future growth. In accom-ly cutting down on production costs.
connect the office systems of vanous plishing this, we shall make systematic On the whole, the chances are good that manufacturers. We are promoting use of our automation technology. Over-our growth will continue to outpace the development in both these directions, all, we are planning to raise our capital market dunng the current fiscal year. We thereby opening up new opportunities expenditures still further in the current intend to achieve a further substantial for our business fiscal year. Major projects include sales increase.
Our strateglc objectives include the Plant 2 in Augsburg. which starting in continued strengthening of our pres-the summer of 1987, will provide sub-ence in promising international markets stantially enlarged capacities for per-and the penetration of new ones Dunng sonal computers, work stations. and the fiscal year, we extended our distribu-TR ANSDATA teleprocessing com-25
Medical Engineering Group saies >e ei">ee e'ou X-ray Systems Cross-sectionalImaging Systems and Therapy 56 Electromed/calSystems 4g DentalEquipment Hear /ng /nstmments 4.0 32 2.4 1.6 0.8 0
E E
2 3
8 Sales up 20% in the U.S.A.
Desp/te intens///ed compet/t/on on the DM 500 milhon. We continued to egand
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world market and the pers/st/ng nega.
y our position as a worldwide market t/ve e//ects of the /ntemationalcut-feader in these fields.
rency situation, we continued to ex-pand our business. Order rece/ pts held Paln/ess destruct /on of k/dney stones steady at DM S b///lon. Had /t not been Our new Lithostar universal urology for the e//ects of the do//ar exchange "g
unit uses shock waves to shatter kidney rate, substant/a/ growth would have stones painlessly "from outside" without been recorded. Sales rose by 54'o to the need for surgery or a water bath.
DM 4.8 bi///on, or 104'o of the Com-The economic advantages of the unit are pany's total sales. A t DM 620 m////on, I
increased by the fact that the urologist N
capital expenditures increased sharply can use it for a great many other exami-over the previous year's DM 360 mill /on.
J' nations and procedures, ranging from We expect that 1966/87 sales w/// reach cystoscopy, ureteral catheterization, and the same levelas in the past // scal a
puncture of the renal pelvis, to the radio-
- year, We are one of the world's lead /ng logicalimaging of functional processes l
manu/acturers of CTand MR /maging in the kidneys, the bladder, and the etfer-systems. MR imaging /s open/ng up ent unnary tract.
With more than 1,000 different prod.
new diagnos tle possib///t/es for /maging As a result, shockwave-induced stone ucts, from miniature heanng aids to MR the art /cular spaces. Outplcture disintegration, which is both less expen-imaging systems, we offer a broader shows a kneofo/ntt upper /eg (6, 5),
sive and less strenuous on the patient, product spectrum than any other medi-lowerleg (4), kneecap (t), tend / nous has now become accessible to medium-cal engineenng suppher in the world.
//gament (3), men /scus (B), art /cular sized hospitals.
Most of our systems and equnpment can cart ll age (7), and fatty tissue (2).
l claim a leading position in terms of both A worldw/de /Irst In hear /ng alds l
sales and technology. The fact that 770/o We have recently been offering new of our sales are made abroad attests to The computed tomography systems hearing aids which dramatically reduce the strength of our international com-made by our Cross Sectionallmaging interfering background noise that is so petitiveness Systems and Therapy Division (sales of annoying for the wearer. Our ultrasonic about DM 1.4 bilhon) place us among the remote control unit for hearing aids, the l
The cha//eng/ng U.S. market world's top manufacturers. The same first of its kind in the world, allows For us the U S market, which ac-holds true for our MR imagers and our volume control and noise suppression counts for a good third of our sales,is systems for use in nuclear medicine and at the touch of a button.
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both a challenge and a constant indica-radiotherapy. We have made major tor of our success. Computed in dollars, improvements in our position in ultra.
Expans/on of our CT//ne we achieved a growth rate of 200. At sonography.
We have expanded our product kne to 0
i U S S 677 million, our sales in the U.S A.
In the Electromedical Systems Divi-include a computed tomography system j
have more than doubled over the past sion, whose sales come to about DM with a price / performance ratio that five years.
1 bilhon, we were able to substantia!!y makes it ideal for use in smaller hospitals With sales of about DM 2 billion, the increase our share of the world market and pnvate radiological practices Be-X-ray Systems Division maintained its by acquinng Pacesetter, a U S based cause of the high diagnostic value of the worldwide market leadership Our manufacturer of cardiac pacemakers.
information provided, the rapid, stress-complex angiography systems, which The combined sales of the Dental free examination methods of computed provide radrologicalimaging of blood Equipment and Heanng Instruments tomography have also become indis-vessels, are recording high growth rates Divisions amounted to approomately pensab!e for the initial treatment of 26
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l accident cases. We regard our new treatment centers and nursing homes.
share of this growth with our products.
diagnostic unit as a further contnbut on The total value of this order is about in addition to products that are already i
to ongoing efforts toward reducing U.S.$ 20 million.
well established. MR imagers should health-care costs.
show a definite upward trend. Our in the U.S.A., we were able to book an Development expend /fures doubled Lithostar unit also offers us excellent order from the Veterans Administration Our expenditures for research and opportunities in the world market. A for 14 computed tomography systems development have doubled over the last substantial number of the X-ray
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and six MR imagers. The VA operates three years. We increased them again, systems installed in the Federal Republic one of the largest hospital systems in by 250/o, to DM 450 million, or 90/o of of Germany are technically obsolete, i
the United States and owns over 270 Group sales..The principal goal, apart representing a significant pent-up i
from the improvement of existing prod-demand.
ucts,is to develop new technologies We are on the verge of opening up ad-Our new L/thostar urology unit is easy for use in diagnosis and therapy. The ditional applications for MR imagers. Our on the paffent, versatile, and excep-various projects are distributed over projects include methods for examining t/onally econom/ cal. K/dney stones are our entire product spectrum.
cardiac function and vascular conditions, disintegrated by shock waves w/thout and a method allowing articular spaces the necessity of placing the patient in Good market opportunities to be imaged in orthopedic diagnosis, a water bath. In addit /on, the unit can In many areas without exposing the patient to X-rays handle almost every d/agnost/c and The world market for medical engi-and subjecting him to contrast media.
therapeut/c applicatlon In urology.
neering systems will expand by about Another realistic objective is the further L/thos tar should sell part/cularly well 40/o in real terms during the current year. reduction of examination times.
to medium s/ted hosp /tals.
We intend to obtain an above average in the U.S.A. we plan to expand our V
business, while decreasing our depen-4 3h.
y.
f up the proportion of local input. This 1
dence on the exchange rate by building I ij d
- lP country will also be a focus for our capi-F tal investments.
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After the previous years' unusually 7h$
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- f)y high expenditures for the acq M b]
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subsidiaries and associated companies, f4 I
particularly in the U S A., we shall bnng
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grow faster than the world market again
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$p in 1986/87 thereby continuing to consoli-1i date and improve our strong position.
N Due to the dollar exchange rate, sales will not exceed the figure for the previ-ous year.
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27
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Telecrmmunicsti;n Notwrrks s
- s - - <ou 12 0 End Security Systems Group J5 Pub /;c Communication Networks Saft5y and Securlty Systems 7.
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8 Now markets for EWSD 5 e:
The Increasing /y rap /d progress of d/g/-
thirds of Group sales, contmued to ex-Strong growth tal technology and the drast/c pr/ce pand, improving our position in the world in digital transm/ss/on systems sh//fJ result /ng from the weakness of market.We are one of the few manu-Our transmission systems, based the do//ar were the cr/t/ca/ /setors for facturers that can supply complete pnmarily on digital technology, posted our bus / ness, Key orders for EWSD networks from a single source, whether double-digit growth rates. Digital radio cxchanges in the U.S. market and the they insoh o EWSD digital exchanges, relay, including large-scale turnkey pro-People's Repub//c of Ch/na and the ac-copper cable and optical waveguide net-jects in Australia and Nigeria, made a vital qu/s/t/on of GTEactiv/t/esin the trans-works, or radio reta/ links and satellite contnbution. Business with optical fiber m/ss/on and sw/tch/ng systems see-earth stations, systems is also growing. In the satellite tor; primar//y in the U.S. and Europe, communications sector, we delivered w/// /mprove ourpos/t/on. With DM 8.8 U.S.A.: Breakthrough for EWSD the Fuchsstadt earth station to the b////on in new orders and DM 8.4 b////on So far we have booked orders for Deutsche Bundespost. This station cur-In sales, we were onlypart/a/ly able to EWSD digital exchanges with a total ca-rently has two antennas for intemational reach the h/ph //gures of the prev /ous pacity of more than 6 million line units telecommunication traffic via Intelsat.
yatr (DM 8.8 and DM B.9 b////on, respec-from 49 telecommunications companies More and more frequently, digital con-t/vely). In 1988/87, however, we Intend in 25 countries. The most recent orders nections of every kind have to be estab-
' to resume substant/a/ growth in sales.
came from Colombia, Uruguay, and lished for periods measured only in The Group /s respons/ble forabout Venezuela, covering a total of about hours or days - for example, to provide 18% of totals /emens sales. WeIn-300,000 lire units to date. Of prime im-journalists attending a global economic creased our cap /fallnvestments to DM portance for our worldwide business conference with reliable links to their 1,7JO (198f/85: 520) m////on, due maln/y was the fact inat in the U.S.A four re-editorial departments at all times. Tasks to thec acqul3Jt/on of GTE act/v/t/es.
gional Bell operating companies placed of this kind are handled by our remote-their first orders for EWSD exchanges controlled channel distributor for digital and two of them confirmed us as third-signals. It " marshals" the most disparate In G:rmarry, tctal orders and sa!es source supplier. A decisive element in streams of information over the available w;rs up significantly over the previous their decision was our ability to supply networks. We anticipate a rapidly grow.
yrir. In particular, we succeeded in subscriber lines that meet the standards ing demand for this equipment.
cxpinding our business in telecommuni-for the Integrated Services Digital Net-The C 450 mobile radio system that ration transmission systems and optical work. A noteworthy feature of the we developed for telephoning from auto-fibir cibles. Abroad, results were less ISDN is its ability to offer two infor-mobiles has been a great success right satisfictory than in 1984/85: The decline mation channels for every connection.
from the start. Only a year after the com-in the value of major currencies caused Without interrupting the conversation, mencement of its test run, this digitally a shrinkage of the sales volume when one party can send the other text, controlled network, the world's most trInstited into German marks, and the images, or data.
advanced, has over 15.000 subscribers soaring sales increase resulting from the Another important event was the ac-in the Federal Republic of Germany.
billing of severallarge-scale contracts in quisition of GTE transmission activities the previous year was not quite equalled, in the U.S.A., establishing a sound base The des /gning of our d/g/tal exchanges t>
d; spite the gratifying growth of our in the U.S. market for our new Siemens In con /ormity w/th the Internat/onal s
- egulir business. However,if both fiscal Transmissions Systems, Inc., Tempe, ISDN standard was dec/s/ve In attract-y:ars are taken together, we are still Arizona. At the same time, we pur-
/ng the first orders in the U.S., the growing faster than the market.
chased non-U.S. GTE activities in the wor /d's largest market forpublic transmission and switching systems switch /np systems. So far, four of Mark:tpos/tionimproved sectors thereby improvmg our market the seven regionalBelloperat/ng Dc: mss with public communication position in Belgium. Italy, Taiwan, and companles have ordered our EWSD n:tworks, which comprises a good two-otr*er countries.
exchanges.
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Telecommunication Networks and Security Systems Group WOrld markOt for local telephono exchang:s in millions of line units (annually) 40 analog and 30 digital / / l 20 digital 10 0 0 8 8 8 9 9 9 9 More than half of them telephone with purchases, Siecor has a 450/o market Sa/ety and security systems our mobile radio equipment. share. The design principles and produc-protectpeople andproperty tion processes for the cables were de-Safety and security systems account F/rst opt / call /berplant opened veloped by Siemens. for about one-third of the Group's sales. /n Neustadt To connect one subscriber to another Security and fire alarm systems are of Optical waveguides are the trans-in an optical waveguide network requires special importance in our product spec-mission medium of the future. The first not only the optical fibers themselves, trum. For example, our pulse-polling industrial production facility for optical but also electro-optical components system for fire detection in buildings fibers in Germany was put into operation which transmit, amplify, couple, and has captured market shares, because, in July 1986 at Neustadt near Coburg by receive the light pulses. We have now among other reasons,it can reliably Siccor Gesellschaf t for Lichtwellenleiter begun mass production of these com-identify smoldering fires even when they mbH & Co. KG,in which we have a 500/o ponents for wavelengths around 1.3 produce only minimal quantities of interest. It is designed to produce over thousandths of a millimeter. They pro-smoke. 125.000 miles of fiber per year and will vide access to a transmission frequen-The control centers of our computer-thus be able to cover demand wellinto cy range with very low attenuation. ized security service monitor commercial the 90s. As a result, even at transmission rates and industrial facilities of all kinds Our associated company Siecor Cor-of half a billion bits per second-the around the clock. They make sure that poration. Hickory, North Carolina, is now equivalent of about 4,000 telephone assistance comes quickly in the event of the world's largest manufacturer of opti-conversations - distances of 30 miles breakdowns or dangerous situations. In cat fiber cables. In the U.S.A., which ac-can be spanned without intermediate addition to fires and break-ins, the cen-counts for about two-thirds of worldwide repeaters. ter also reports stalled elevators and fail-ures in refrigeration plants, while alerting i the fire department, police, or customer l q { service representatives. We offer this 7-3 comprehensive service throughout the j e d ". y ; [* Federal Republic of Germany: Control I l centers have been set up at all our branch offices. Microcomputer-controlled trains l g in 1984, our microcomputer interlock-ing system marked the beginning of the l i < Improved reliability and lo wer opera t-ing costs are the goals of railway l ,( l lWg companies throughout the world. Our y microcomputerInterlocking systems r y, j'# require less space andmaintenance Y ~ ^ than electromechanical equipment and l , ; Q, control more extensive Interlocking zones. The display screen - here, at the ~ SW~ ,~ line supervision office in Murnau, Bavaria -Indicates allswitch and 7 s '\\ signalsettings, as wellas the position '\\ of the trains. \\ w 30
f)/ s.v Digitalradio relay systems are in increasing demand for telecommuni-cation transmission, particularly over long distances. We are one of the lead-Ing manufacturers in the world market and now also an important supplier to the Australian postal administration. Ourpicture shows the installation and testing of digital radio relay systems at our Bayswater, Melbourne, plant. l V c p' The coming decade will benefit from f. dg,fQ4 dd ' J sm P the laboratory work now being done on 3 ll jq q l
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9 T~ '~ jf will begin to install in 1990. The network 1 s u" ^ '~ the universal wideband ISDN, which we j p,q ~ 3 [ 'g,^)I will use optical fiber cables reaching if, T* giu--[ 7 c i 1., d th every subscriber and can even s g.- -.A i 5 >- E 5 ,t motion color video transmissions during j w ,[C) telephone calls or video conferences. OQ p ; , 4 i " 7. A_._. e ~ We have developed further key compo-y Q _j { y nents for this purpose. A coupler of ours
- d. ]y--
t l { j P that can connect any desired combina-4V ~ $ tion of 32 subscribers with 16 wideband . fx - w - M- ~ T ~ cables at a transfer rate of 140 million s' I I l l f bits per second is one of the world's Q ') q j most powerful products in this field.
- m J.4 } eW Opticalcomponents from Berlin n
c l ,( [' g ( 3 Our new plant for optical components [ ), j f in Berlin will supply such products as A connectors, transmitters, couplers, and 3 q g f; /- q. } 2.: receivers to the rapidly growing market Mk ) b $ ] .s for optical communication networks. Its u first stage is scheduled for completion transition in railway signaling technology years ago, has a dense distribution by mid-1987, but production is already from relays to electronic equipment. network in the United States. under way in a temporary building. In Since then, eight electronic interlocking 1985/86, the Group spent a total of about systems have started operation, and six Restralned overallmarket growth DM 700 million for property, plant, and more are currently being designed and During the current fiscal year, we ex-equipment; expenditures for 1986/87 will manufactured for customers. Working pect the v.ur!dwide market for telecom-remain at roughly the same level. in conjunction with our LZB inductive munication networks to grow by about train control system, the electronic inter-50/0, based for the most part on digital Growing faster than the market locking will eventually eliminate the communication technology. Our delivery Postal administrations in every coun-need for conventional trackside light of the first ISDN exchange to the try are insisting with increasing fre-signals on rapid transit and other rail-Deutsche Bundespost in Mannheim at quency on the most modern and effi-roads. We have been able to extend our the end of 1986 represents another step cient technology for the accelerated dig-I lead over the competition in the world forward in terms of communication qual-italization of their networks. Under these market. ity and efficiency. ISDN offers subscrib-circumstances, our leading position in Through the acquisition of Potter & ers access to every kind of communica-digital exchanges, radio relay links, and Brumfield, Inc., Princeton, Indiana, a tion. In addition,it will be possible to optical fiber networks gives us a com-leading manufacturer of electromechani-display the number of the calling party petitive advantage. We shall also inten-( cal relays in the U S.A., we not only and to reroute calls from a subscriber's sify our safety and security systems strengthened our position in the local home, for example, to a hotel. And business; the opportunities in Europe market, but have also become one of the urgently awaited calls can be announced look particularly favorable. Overall, we major suppliers of relays tiiroughout the in the course of other telephone conver-intend to expand sales substantially wortd. The company, founded some fif ty sations. during the current fiscal year. 31
Research and development Expenses in biiiions of ou 6.4 Bas /c and applied research Development of bas /c and key technologies 56 Product and systems development 4g 4.0 32 2.4 1.6 l 08 Intensified basic research ~ for the future 8 en8 5 Our a/m /s to cont /nue offer /ng our cus-of these funds went to the KWU group search and technology laboratories. tomers eff/clent and outstanding prod-for long-term energy projects. Govern-These projects transcend Group bound-ucts and systems that w/// safeguard ment subsidies accounted for only aries and will form the basis for the pro-the/rpos/t/on on the world market In slightly over 30/o of Siemens AG's total ducts of the 90s. 4 the face of rap /d/y growing compet/t/ve research and development expense; pressures. /t /s therefore one of our es-almost 970/0 was financed from our own Ceram/c catalysts sent/a/ corporate goals to set the pace funds. The subsidies also include alloca-detox /fypower-p/ ant flue gases forprogress in the growth sectors of tions from the European Community for New materials and manufacturing electron /cs and electrical eng/neer/ng, the promotion of technology. As part of processes are making it possible to do wh/ch are of v/ fall nportance through-this international cooperative endeavor, many jobs better and more economically out the world. We ra/ sed our research we participated in several projects relat-and to solve problems which up to now and development expenses to DM S.4 ing to information and automation sys-were impossible or very difficult to solve. (t984/BS:4.8) b////on. Th/s /ncrease of tems (Espnt). Plastic-insulated underground cables approx /mately 13 % clear /y reflects the About 900/0 of the expenditures was must be made to transport power for intens/f/ cat /on of our work to secure assigned to our Groups for the creation many decades: Our Erlangen laborato-the future. /t is far and away the largest of new products and systems and the ries have therefore developed a struc-amount spent by any European com-further development of existing ones. ture for the insulation of these cables pony on /nnovat/on. Important results are also reported on that further extends their useful life. The pages 14 to 31. interrupting capacity of medium-voltage We concentrated the increased ex-The remaining 100/0 of the funds was vacuum circuit breakers needs to be penditures primarily on microelectronics used to develop fundamental principles increased: We have come up with new as a key technology, but also on office and processes at our corporate re-types of contacts that can handle one-and factory automation, telecommunica-tions, and medical diagnostic equipment. 1 4 We increased the number of our scien-cr tists, engineers, and technicians, bring-wr M a t wra Er p m Z ing our research and development staff ,4-MtmdrM*h to some 39.000 (1984/85: 36.000). k , C,NI"~ ~ i During the fiscal year, the German j 'h tw 4 Federal Ministry for Research and Tech-nology again supported selected R&D ? projects that are of interest to the econ- ^ w wm omy as a whole. At Siemens, about half - 4./,, ,y. Office systems, w/th their steadily ex-C> } /l-4 panding capabilities, meet with general acceptance onlyif their functions can be quickly understood without led /ous training. We are design /ng built-in user gu/ dance systems for easy familiariza- -W tion and simplified operation. For this y purpose we are researching into what eI A lW users expect from their office systems, how they handle them, and how rapidly they understand the error messages. 32
i l l l l D l l l 7 l .= a abroad to further expand our interna-
=== '.m, em tionalposition. This will also enable us to respond swiftly to customer needs and offer comprehensive service. T Siemens supplied the entire lighting $ ; ~ e,.n -... n
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~ system for the Hong Kong Bank, famed worldwide for its architecture - AC a proJoct that involvedpioneering y = work in lighting technology. - -.. ~. 38
Sal::s by geographic area DM 47.0 billion-100% g 4% Africa 9% Asia and \\ Australia 4% Latin America 10% North America 26% Europe without Federal Repubic of Germany 47% Federal Re-public of Germany including Berlin (West) 1985/86 Growth opportun/t/es in the U.S.A. In 1985/86, high future-oriented ex-Corporation,it holds a leading position For six years now, the U.S.A. has been penditures in almost all sectors, as weil in the supply of optical fiber cable our most important foreign market. In as expenses in connection with the re-systems worldwide. 1985/86 our sales growth in dollars, at organization of Siemens Energy & Auto-We have for years been one of the 120/o, was again above average. If we in-mation, Inc. put pressure on income leaders on the U.S. market for electro-clude Siemens Pacesetter,Inc., Sylmar, from our U.S. activities. medical equipment. The acquisition of California, which is being consolidated Siemens Communication Systems, Pelton & Crane Comp., Charlotte, North for the first time, the growth rate was Inc., Boca Raton, Florida, with its fully Carolina, has further strengthened our actually 190/o. When translated into DM, digitalISDN switching systems, qualified position in the dental sector. however, sales declined by 110/o to DM as a supplier of several U.S. telephone We expect that overall sales in the 4.5 billion. The exchange-rate effect is companies. Through its acquisition of U.S.A. will continue to grow vigorously primanly statistical in this case, since Potter & Brumfield,Inc., one of the lar-in 1986/87 and the years ahead. 800/o of our sales is already based on gest U.S. relay manufacturers, and the local operating performance. An increa-takeover of GTE's transmission systems Cont /nu/ng rev/valin Lat/n Amer /ca sing portion of the products made in our activities, Siemens Communication After a period of stagnation, demand plants in the U.S. is exported. No fewer Systems, Inc. has become an important for electrical and electronic products has than 17,000 (1985/86: 15,000) people supplier of advanced telecommunication revived in Latin America. However, the work for Siemens in the U.S.A. equipment. Through its interest in Siecor trend varies from country to country, SQ Qq ~ P} ]#% f9 \\ ^ 4}.,. [ ~ y y
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Siemens companies abroad Capital spending by geographic area DM 6.1 billion - 100% \\ 1% Africa 1% Asia and Australia 2% Latin America 17% North America 22% Europe without Federal Republic of Germany 57% Federal Re-public of Germany including Berhn (West) 1985/86 ranging from recession to strong strengthened our fine position in medical Outside Germany, we own 104 growth, for instance in Brazil. We book-engineering. Our readiness to enter (1984/85: 99) f actories in 26 countries; ed new orders totaling DM 2.7 (1984/85: cooperative ventures and train Chinese in addition, we hold interests of up to 2.6) billion in Latin America, and our skilled workers are essential for the 500/o in 59 (1984/85: 55) plants in 31 sales came to DM 1.9 (1984/85: 2.1) bil-cultivation of these relationships. So far, countries. Capacity utilization, at 720/o, lion.19.000 people are working at our more than 50 license agreements have continued at last year's level. plants, compared with 17,000 a year ear-been signed. / C8P f8/8Pending lier. Our activities are concentrated on expandsng the intrastructure with energy 114,000 employees abroad focused on Industrialcountries and telecommunication systems. We have established a presence in The major targets for our capitalin-In 1984/85 our companies in Argentina 127 countries with local Siemens com-vestments abroad, which rose by 950/o had suffered temporary setbacks in panies. liaison offices, sales offices, and to more than DM 2.6 (1984/85: 1.4) sales, earnings, and capacity utilization. agencies. At the end of 1985/86 we had billion, were Western Europe with In 1985/86, however, order receipts 114.000 (1984/85: 108.000) employees DM 1,323 (1984/85: 469) million and the more than doubled, nsing from DM 366 abroad. Half of them were working in U.S.A. with DM 1,073 (1984/85 716) to DM 890 million. A major stimulus factories and workshops, and one-third million. The sharp increase in our invest-came from ENTEL, the telephone admin-in distnbution or other service areas. ments in Western Europe is attnbutable istration whose Megatel Plan provides About 6.000 (1984/85: 5.000) foreign em-in part to the acquisition of GTE activities for 1 milhon new kne units, most of them ployees were engaged in research and with manufacturing facihties and branch in digital switching technology, to be development in the U.S.A., the European offices in Belgium and Italy. As in installed by 1989. We are participating industrial countries, Argentina, Brazil, 1984/85, we made approximately 900/o in the Megatel Plan with our EWSD tech-India. Australia, and other countries. of our totalinternationalinvestmentsin nology through our company Equitel Western Europe and North America and S. A. and our new minonty interest in the about 100/o in other areas, especially the Argentinian Standard Electric, a former developing countries in Asia and Latin ITT subsidiary. In the year under review, f America. We are concerned by the ten-we handed over to the customer the first dencies to nationalization in some coun-EWSD exchange manufactured in Latin P y tries, since this inevitably impedes the America. L transfer of capital and technology. In addition to the acquisitions de-Expans/on In China f. ,/ scribed above, our major projects in the The People's Republic of China is "i U.S.A. were a new plant in Cahfornia for becoming a major market in East Asia. A third office. in Guangzhou was added <1 We increased our capitallnvestments abroad by 954 to over DM 2.6 b/// ion, to our organization. and a fourth is being ,j N? mainly for the further expansion of our set up in Dalian Our staff consists of 120 Chinese and German employees. l j* manufacturing facilities and our sales 452 milhon and recorded sales of DM N ( ' and service organ /zat/ons. In Nasik, in 1985/86 we booked orders worth DM g north of Bombay, Siemens /s expanding 195 milhon. In addition to orders coming an er/ sting plant /nto a factory for elec-from industnal plants and shipyards, q tronic automation systems. Upon its orders for 18 System 7.500 general-y completion, over 1.000 employees will j% be working here. Ourpicture shows the purpose computers for universities and $n;& & h;9/ .C foundation stone being laid according EWSD equipment for several provincial capitals are worth mentioning. We also ~ to a Hindu ritual. 40
our components activities and the ex-pansion of the New Jersey factory for gattium arsenide components. in Austria SIE ENS we built a plant for electronic equipment se-n xe OA FA EEEE and systems, as well as a center for product and systems development. We acquired interests in British companies 5 manufacturing private communication ~~ systems, lamps, and medical engineer-
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.~ I ing equipment. Expend 6tures for proper-ty, plant, and equipment accounted for ?. 420/o (1984/85: 680/0) of our capital a a spending abroad and investments in x subsidiaries and associated companies g. for 580/o (1984/85: 320/o). We will con-I tinue to systematically expand our manu- / f acturing facilities and sales and service W organizations in key markets. l Eam/ngs Our operating companies abroad again ~ / f increased their sales, which totaled jj DM 20.0 (1984/85: 19 8) billion, and con-a tributed an after-tax income of DM 282 Siemens w/// also be ga/n/ng a stronger electronics market, although the pace U 984/85: 103) million to our 1985/86 net foothold /n./apan, the world's second will temporarily slow down. income. /argest electricaland electron /cs mar-In the long run, electrical engineering A substantial part of our foreign as-ket. More of ourproducts, systems, and electronics in particular will continue sets is held by Siemens Beteiligungen and equipment wi// be introduced there to grow at a higher rate than the indus-AG, Zurich. For its fiscal year ended during the current year. Slemens /s trial average. The world electrical and March 31,1986, the company showed highly visible on the road Irorn Haneda electronics market - including an ever a net income of Sfr 60.5 (1984/85: 49.4) National A/rport to the city of Tokyo, expanding software volume - should million, which was increased by a bal-with the country's largest neon sign increase at an annual rate of 70/o. We ance brought forward to Sfr 61.0 (t62 x 43 /t.). intend to participate in this growth and (1984/85: 54.3) million. Sfr 60.0 (1984/85: to continue the consolidation of our 8.8) million was paid out as a dividand. are governed by principles correspond-position in all accessible markets. The 1985/86 annual report published ing to the OECD Guidelines for Multi-by Siemens Beteiligungen AG deals with national Enterprises. Within Siemens the Siemens subsidiaries in Austria. and in all our dealings with associated Belgium, Finland. Ireland, Italy, the companies. charges for products and Netherlands, Norway, Spain, Sweden, services are always gauged to cost or Switzerland, Austraha, and Colombia. market price. Severallocal Siemens companies pubhsh their own annual reports. Expansion in growing markets ' ol* Q,'"y'l"j,,]8'*" " Q"p;"j(" ] Our cooperation with Siemens com-For fiscal 1986/87, we anticipate fur-panies abroad and our business policy ther growth in the world electrical and of s.emens sete,iigungen AG 41
Major associated companies O Continued growth and new jobs Ourmajor associated companies - earnings, DM 39.7 (1984: 38.1) milnon With a sales increase of 11%, the t> BSHG, Bergmann, and Sigri-Increased was transterred to the controlling com-BSHGgroup grew faster than the mar-their consolidated sales during 1985* pany. ket, creating 1,000 newjobs. The com. by almost DM 600 million to a totalof Thanks to favorable market conditions pany's strong position in microwave DM 6.4 billion, while creating 1,700 new and innovative products, sales rose con-appliances is due to Intensive research jobs. The three companies expanded siderably in fiscal 1986. Starting in the and development. Electronically con-theirpositions in key segments of the spring, the German market showed trolled microwaves help save time and markets for home appliances and capl. signs of an increasing revival. The share energy. Ourpicture shows the assem-talgoods. of international business in total sales bly of Microwave Plus appliances at the continued to grow. As a result, BSHG, plantin Traunreut, Bavarla. BSHG grows faster than the market which is the third largest European 1985 brought the German home company in this line of business, further ucts; one-third of this amount was again appliance industry stronger domestic strengthened its international position. spent in Berlin. Extensive additions were demand and considerably higher orders Sales growth was reported for dishwash-made to production capacities for auto-from abroad. Bosch-Siemens Haus-ers, kitchen ranges, appliances with an motive electrical systems. 400 new em-gerste Grr.bH (BSHG), Munich, and its integrated microwave, and floor-care ployees were hired, bringing the total wholly-owned subsidiary, Neff GmbH, egip ment. In the field of consumer elec-work force to 12,700. DM 9.1 (1984: 7.9) p Munich, increased their sales by 110/o tronics, sales of VCRs again rose sub-million was transferred to general re-to DM 3 6 billion. Consequently, despite stantially. Good capacity utilization, fur-serves. Net income available for distri-continuing tough competition, the BSHG ther progress in productivity, and the bution remained unchanged at DM 11.2 group once again achieved a growth rate first price adjustments in years, had a million and was again used to pay a that exceeded the average for the indus-positive effect on earnings. BSHG's for-dividend of DM 8 on each DM 50 share. try (60/c) and reinforced its leading posi-eign companies also reported notable After the extraordinary increase in tion on the German market. Exports sales growth. BSHG expects that the 1985, new orders were slightly lower dur-chmbed by more than 20% (1984/85: home appliance boom will continue in ing fiscal 1986. There was a particularly 740), so that their share of total sales 1987. sharp decrease in orders from electric rose from 3340 to 370/o. Almost all the utilities for environmental protection product lines contributed to the growth Bergmann: Orders up 14% equipment. Deutsche Telephonwerke in sales. Bergmann-Elektricitsts-Werke AG, und Kabelindustrie AG (DeTeWe), Berlin, investments in property, plant, and Berlin,is a holding company for indus-the largest Bergmann company, re-equipment amounted to DM 172 million, trial enterprises in the fields of communi-ceived fewer orders from the Deutsche or DM 66 million more than in 1984. DM cations, power engineering, process au-Bundespost: While good growth rates 70 million was spent on research and de-tomation, and instrumentation and con-were already being recorded for digital velopment, an increase of 130/o over the trol. During fiscal 1985, the Sergmann telephone equipment, orders for analog previous year. Approximately 1,000 new companies benefited from the economic systems showed a further decline. jobs were created in 1985: On December revival in Germany. New orders rose by Bergmann sales continued to grow, 31 of that year BSHG had 15,400 employ-140/o to almost DM 1.6 billion. All the due mainly to power engineering and ees, including part-time workers. De-sectors contnbuted to this increase, process automation products. In Arol-spite stiff competition, earnings also im-with exceptionally high growth rates be-sen, Hesse, another factory for enam-proved slightly in 1985. Af ter DM 20 mil-ing recorded in the power engineering eled wire was purchased as an addition lion had again been allocated to retained business. Consolidated saies were up to the capacities of Lackdraht Union 80/o, approaching DM 1.5 billion. GmbH. This acquisiton should produce ine Nn.res refer ta me oss ca:endar ywaruess Capitalinvestments totahng DM 72 a synergistic effect and provide faster pNN $$c$a'tNcI aEeE. (1984: 90) million were used to boost access to market segments that have hsted on page 46 productivity and manufacture new prod-not yet been penetrated. 42
=t, tM" b Ii N r . pp., A.. i-1 a,,dd 1.,.. t m_. f-a J .s + 'N% M s I a [ -:: - t;k ,,. / 4 ...a Newplants forS/gr/ include fire-retardant airplane seat collapse which had a particularly severe r Sales of Sigri GmbH, Meitingen, and covers made of Sigrafil-O, an intermedi-effect on exports. Sales were 80/o lower its consolidated companies are based ate for the manufacture of carbon-fiber than in the previous year. The capital primarily on graphite electrodes and products. Sigri's heat-resistant materials expenditure program includes new other carbon and graphite products. ere used in such diverse applications as facilities for the manufacture of flexible During fiscal 1985 the Sigri companies industrial furnace construction and graphite and incombustible and non-boosted their sales by 80/0 to DM 1.3 bil-space technology. As capital expendi-fusible fibers. lion. As in 1984, international business tures increased, depreciation went up accounted for more than 800/o. The from DM 78 million to DM 90 million. number of employees grew by 300 to Earnings were also affected by the fact almost 7,000. that sales prices tf graphite electrodes. Expenditures for property, plant, and which account for about 600/o of group l equipment were increased by 540/o to sales. could not be adjusted to cover l DM 106 million. They were concentrated higher costs. However, since there were on manufacturing facihties for high-fewer special charges than in 1984 Sigri capacity graphite electrodes and the GmbH's net income for the year rose to l expansion of the manufactunng facihties DM 5.0 (1984: 2.0) million. It was again for special graphites. Sigri's research transferred in full to retained earnings, and development efforts, which again In fiscal 1986, the strong decline in the absorbed about 30.c of its sales, are U.S. dollar exchange rate and intens;f:ed focused on matenals and new process competition on the Sign companies' technologies. Noteworthy developments most important markets led to a pace 43
Siemens companies and major associated companies at September 30,1986 Siemens AG compnses the key operating Siemens companies are those domestic and in its domestic and foreign associated com-sectors The power plant, transformer, and foreign companies in which Siemens AG is panies. Siemens AG holds a direct or indirect lamp activities are conducted by Siemens directly or indirectly entitled to cast a majonty interest of 500/o or less. These companies are compavas of the votes. These companies are. in prin-not consolidated. The major associated com-ciple, included in the worldwide financial sta-panies are hsted in Part lli 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 the worldwide consohdated financial statements, pages 53 to 59). Capitalin thousands of DM Siemens or of other currencies share (0/o)
- 1. Consolidated companies
- 1. Domestic j
Kraftwerk Union AG. Mulheim on Ruhr* 622,000 100 l Interatom GmbH. Bergisch Gladbach".... 30.000 100 l Internationale Natnum-Brutreaktor-Bau GmbH, Bergisch Gladbach 100 70 Multi-Arc GmbH, Bergisch Gladbach. 102 51 i NRG Nuklearrohr-Gesellschaft mbH, Duisburg 16,000 100 Kraf twerk Union-Umwelttechnik GmbH, Stuttgart" 3.000 100 Reaktor-Brennelement Union GmbH, Hanau 30.750 60 Alkem GmbH, Hanau" *.. 3,000 60 Poligrat - Nuclear GmbH, Munich'
- 500 51 Siemens Finanzierungsgesellschaft fur informationstechnik mbH. Munich 365,000 100 Sietec Siemens-Systemtechnik und Portfoko GmbH & Co. KG, Berlin 773.747 100 Computer Gesellschaft Konstanz mbH, Constance
- 20.000 100 Risicom R0ckversicherung Aktiengesellschaft, Berlin.
5,000 100 Siemens Portfoho GmbH & Co. KG Gr0nwald, Gr0nwald 5.000 100 Siemens Portfoho Beteiligungs-GmbH, Berlin 1.000 100 GVD Gesellschaft f0r die Vermietung von Datenverarbeitungsanlagen mbH, Munich 500 100 Sietec Siemens-Systemtechnik und Portfc,ho Beteiligungs-GmbH, Berhn 100 100 Osram GmbH, Berhn and Munich. 147.000 100 Elektro-Rohren-Gesellschaft mbH & Co. KG, G6ttingen 3.000 100 Elektro-Rohren-Gesellschaft mbH, Gottingen 50 100 Vogesa Gluhlampenfabrik GmbH. Coburg 2,000 100 Hejalux Lampen GmbH, Munich" 500 100 Radium Elektnzitats-Gesellschaft mbH. Wipperf0rth 12,500 67 Dr.-Ing Rudolf Hell GmbH. Kiel'. 50,000 100 RXS Schrumpftechnik-Garnituren GmbH, Hagen* 20.000 100 Vacuumschmelze GmbH. Hanau* 18.000 100 VCD Venture Capital Beteiligungsgesellschaft mbH Munich
- 10.000 100 Heimann GmbH. Wiesbaden*
8.000 100 Inak GmbH Industnelle Anlagen fur Krankenhauser. Forchheim 7,000 100 Plessing Dental Handel GmbH, Stuttgart" 4,000 100 KKW Kulmbacher Khmagerate-Werk GmbH. Kulmbach*. 6.000 100 Manutec Gesellschaf t fur Automatisierungs-und Handhabungssysteme mbH, F0rth* 6.000 100 Pacesetter Systems GmbH, Hamburg 50 100 Siemens Nachrichtentechnik Beteil gungsgesellschaft mbH. Munich 50 100 WK Versicherungsvermittlungs-und Verkehrskontor GmbH. Munich' 50 100 Transformatoren Union AG, Nuremberg"* 70,000 75 1.T.-Transformatoren Beteihgungs-GmbH, Nuremberg * " 15.000 87 Volta-Werke Elektricitats-Gesellschaft mbH, Berlin" 5.000 75 Leitungswerk Friesoythe GmbH & Co. KG, Fnesoythe 6.500 70 Leitungswerk Friesoythe GmbH, Friesoythe 50 70 Siemens Telekommunikations-Beteiligungsgesellschaft mbH. Munich. 50 65 Siecor Gesellschaft fur Lichtwe!!enleiter mbH & Co. KG. Neustadt near Coburg 20.000 50 Siecor Gesellschaft for Lichtwellenleiter mbH. Munich 100 50
- 2. Intemational 2.1. Subsidianes of Siemens AG Siemens Beteiligungen AG Zunch Sfr 522.500 100 Siemens S A, Saint Gdles (Brussels)
P'r 1.600 000 99 Siemens A/S. Balferup (Copenhagen) Dkr 75.000 100 Siemens Osakeyhtio, Helsinki Fmk 36.000 100 Siemens S A. St. Denis (Pans) FF 45.200 100 S.emens Ltd Sunbury-on-Thames (London) f 24 000 100 44
Capitalin thousands of CM Siemens or of other currencies share (0/0) Siemens Ltd. Dublin.. Irf 180 100 Siemens Elettra S p. A., Milan Lit 20,000.000 100 Siemens Nederland N V., The Hague FI 50.000 100 Siemens A/S. Oslo Nkr 110.000 100 Siemens AG Osterreich, Vienna S 1,068.133 56 Siemens-Elema AB. Solna Skr 80.000 100 Siemens-A! bis AG. Zunch Sfr 60.000 78 Siemens S A, Madnd Ptas 1.800,000 93 Simko Tacaret ye Sanayi A.S, Istanbul. TL. 1,200.000 51 Etmas-Elektnk Tesisat ve Muhendislik A.S.,Istanbut TL. 180.000 51 Siemens Ltd., Johannesburg Rd 13.450 52 Siemens S A, Caracas.. Bs 77.300 100 Siemens Ltd, Richmond (Melbourna) $A 9.089 100 31 other manufactunng and sales companies in Austna. Denmark. Finland, France, Great Bntain, the Netherlands. Norway, Sweden Switzerland, the U S A., South Afnca, Austra!!a. and Singapore Siemens Europa-Finanz AG Luxembourg Sfr 5,000 100 Merkur-Finanz AG. Zunch.... Sfr 20.000 100 Sibag Investments. Inc., New York, NY U S.$ 250.000 100 Siemens Western Finance N V., Willemstad. Curacao U.S $ 10.000 100 6 other financial Companies in the U S.A. and Switzerland Siemens Capital Corporation. New York, NY U.S.$ 1,100.516 100 Siemens Communication Systems, Inc., Boca Raton, FL U.S.$ 37,122 100 Siemens Information Systems, Inc, Boca Raton. FL U S.$ 158.286 100 Siemens Energy & Automation,Inc., Atlanta. GA U S.$ 197,594 100 Siemens Medical Systems. Inc, Iselin, NJ US$ 183.967 100 Siemens Components. Inc., Iselin. NJ US$ 105.% 5 100 35 other manufacturing and sales companies in Austna, France. Italy, i the Netherlands, Spain. Barbados, the U.S A.. Mexico, 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 GTE Atea N V., Herentals, Belgium Bfr 618.000 80 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. Electncal Equipment Manufacturers. Vassilikon Dr 123,000 67 GTE Telecomunicazioni S p.A., Cologno Monzese Lit 15.500.000 65 Siemens Data S p A., Milan Lit 9.000,000 51 Siemens S A R L., Lisbon... Esc 1,050,000 100 Turk Siemens Kablo ve Elektnk Sanayii A.S., Mudanya TL. 3.500,000 55 Siemens S A, Buenos Aires A 2,135 100 Equitel S A., Buenos Aires A 434 100 Siemens S A, Sao Paulo Cz$ 1,441.290 100 Siemens S A, Bogoth Col $ 68.000 70 Siemens S.A. de C.V., Mexico City Mex$ 800,000 100 Siemens India Ltd Bombay irs 108.000 51 Siemens K.K., Tokyo V 600.000 83 Siemens Components (Advanced Technology) Sdn. Bhd., Malacca (Malaysia) M$ 6,000 100 Siemens Pakistan Engineering Co. Ltd., Karachi. prs 37,268 64 Siemens Components Pnvate Ltd., Singapore. S$ 800 100 GTE Taiwan Telecommunication Systems. Ltd., Taipei.. NTS 320.000 44 11 other manufactunng and sales companies in Austna, Belgium. France, Greece. Portugal, Brazil. Japan, and Malaysia 3 other financial companies in Belgium and the U S.A. 2 2. Subsidianes of Siemens Finanzierungsgesellschaft fur Informationstechnik mbH Siemens Coordination Center S A., Brussels Bfr 4.000.000 100 Sunbury Investment Company Ltd., Lcadon. f 60.000 100 Siemens Financienngsmaatschappij N.V., The Hague Fi 10,000 100 2 3 Subsidianes of Osram GmbH N V. Osram S A., Zaventem (Brussets) Btr 30.000 98 Osram A/S Tastrup (Copenhagen) Okr 2.000 60 Osram S A R L., Molsheim FF 35.000 100 Wotan Lamps Ltd, London f 500 100 Osram SocietA Riunite Osram Edison-Clenci S p A, Milan Lit 13.000.000 100 Osram Nederland B V, Alphen a/d Rijn FI 500 100 Osram Osterreichische Gluhlampenfabnk Ges m b H, Vienna S 20,000 100 Osram Empresa de Aparelhagem Electrica Lda. Lisbon Esc 68.000 100 Osram AB. Stockholm Skr 4.000 100 l Osram AG. Winterthur sfr 1.000 100 1 Osram S A Madnd. Ptas 420.000 90 l Osram Argentina S A C 1, Buenos Aires. A 758 66 Osram do Brasil-Companhia de Lampadas Elstncas S A., Osasco Cz$ 80.545 100 Osram S A de C.V.. NaucalpAn (Mexico City) Mex$ 255 000 100 Osram Tokyo. Ltd. Tokyo l 5 other manufactunng and sales companies in Italy. Brazil Canada. and the U.S A.. V 10.000 100 2 4. Subsid.ary of Transformatoren Union AG Transformadores Unt&o Ltda (TUSA),Jund:ai(Sao Paulo) Cz$ 594.627 84 2 5. Subsid,ary of Kraftwerk Union AG Utility Power Corporation. Palmetto. FL U.S $ 78 000 93 45
Capitalin thousands of DM Siemens or of other currencies share (occ)
- 11. Nonconsolidated companies
- 1. Domestic Companies with a low business volume andinactive companies Siemensstadt-Grundst0cksverwaltung Beteiligungs GmbH, Berlin 700 100 500 100 Klangfilm GmbH, Berl n and Karlsruhe 200 100 GHT Gesellschaft fur Hochtemperaturreaktor Technik mbH, Bergisch Gladbach*
- Asko Grundstocksverwaltungs-Gesellschaft mbH, Berlin" 100 100 Topsoft Marketing GmbH. Munich 100 100 EC Electncal-Consulting GmbH. Munich 50 100 indass GmbH for Vermittlung von Versicherungen. Berlin" 50 100 Osram Light Consulting GmbH. Munich 50 100 Patent Treuhand-Gesellschaft fur elektrische GIUhlampen mbH. Munich" 50 100 50 60 ROU-Lagergesellschaf t mbH. Karlstein....
150 51 KVG Kenntnisverwertungsgesellschaft Schnelle Brutreaktoren mbH, Bergisch Gladbach Retirement and other employee benefit corporations Siemens-Altersfursorge GmbH. Berlin.. 50 100 Kraftwerk Union-Altersversorgung GmbH, MUlheim on Ruhr 50 100 Interatom-Altersversorgung GmbH, Bergisch Gladbach 50 100 Osram Unterstutzungseinrichtung GmbH, Berlin 50 100 Hell-AltersfUrsorge GmbH, Kiel 50 100 Vacuumschmetze Unterstutzungseinnchtung GmbH Hanau 50 100 Heimann-Altersversorgung GmbH. Wiesbaden.. 50 100 Transformatoren Union-Altersversorgung GmbH, Nuremberg 50 75 Volta-Forsorge GmbH. Berlin 50 75 Leitungswerk Fnesoythe Altersversorgung GmbH, Friesoythe 50 70 Radium Unterst0tzungskasse GmbH, WipperfUrth... 50 67 Reaktor Brennelement Union-Altersversorgung GmbH. Hariau 50 60 Siemens-Wohnungsgesellschaft mbH, Berlin
- 6,500 100 Berliner Vermogensverwaltung GmbH, Berlin
- 1.000 100 Other companies not under the uniform direction of Siemens AG Siemens-Electrogerate GmbH. Munich.
10,000 100 Plania Beteiligungsgesellschaft mbH. Munich *" 40.500 67 Autostrahler GmbH, Herbrechtingen 200 51
- 2. International 139 companies with a low business volume and inactive companies, one employee benefit corporation, and five companies which do not operate under the uniform direction of Siemens AG lit. Major associated companies
- 1. Domestic Messerschmitt-861kow-Blohm GmbH. Ottobrunn 600.000 5
held by Fides-Industne-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.. 95,000 13 Bergmann-Elektricitats-Werke AG, Berlin 70.000 37 Dyckerhott & Widmann AG. Munich 57.000 13 held by VBB Gesellschaft fur die Verwaltung von Bau-Beteiligungen mbH, Munich TEL A Versicherung Aktiengesellschaft, Berlin and Munich 28.000 50 Norddeutsche Seekabetwerke AG. Nordenham 15.000 50 Kabeltrommel GmbH & Co. KG. Cologne 10.000 21 Hospitalia international GmbH Frankfurt * " 5.000 50
- 2. International Osram-GEC Ltd.. London I
1 49 Adwanced Micro Devices, Inc. Sur.nyvale, CA USS 125.333 14 Tel-Plus Communications. Inc., Boca Raton. FL U S.S 228.907 35 Siecor Corporation. Hickory. NC. USS 57.800 50 Cable Corporation of India Ltd Bombay. IRS 48.000 20 Iranian Telecommunication Manufactunng Company, Shiraz Ris 1.400.000 20 Gold Star Telecommunication Co. Ltd. Seoul W 7,200.000 25 National & German Electncal and Electronic Services Company, Kuwait K D. 200 49 Telephone industnes of Pakistan Ltd. Hanpur prs 73.148 17 t Arabia Electnc Ltd, Jeddah SRs 3.000 30
- Profit-and-loss transfer agreements have been
- Profit and-loss transfer agreemerits have been
- Profit-and-loss transfer agreements exist with concluded with these companies by Siemens AG concluded with these companies by their respec-these companies through companies formed (We parent Company under the German Cml Code
___ 46
Siemens AG-Statement of income for the period October 1,1985 to September 30,1986 om l l l 1985/86 1984/85 DM 000 Net sales 30,195.411,419 29.044,192 Change in inventones of finished products and work in process and in the cost of unbilled contracts 781.128.866 501.596 30 976.540.285 29.545.788 Company-produced addations to plant and equipment 647.071.699 514.215 Total operating performance 31.623.611.984 30.060,003 Less-cost of matenals. supphes, and merchandise 12.620.444.718 11,944.162 Gross result from operations 19.003.167,266 18.115.841 income under profit-and-loss transfer agreements 134.945.182 144.538 Income from investment in shares of substdiaries and associated companies 345.986.600 163.019 Other interest and similar income 1.831.154.102 1,866.747 Gains on disposal of fixed assets and investments 629.351.311 59.838 Credit to income from elimination of provisions 112.557,929 132.840 Credit to income from elimination of special reserves 26.758.513 51,883 Miscellaneous income 2.359.812.016 1.952,092 including extraordinary income 12.164.903 [ 31.159] 5.440.565.653 4.370.957 24.443.732,919 22,486.798 Wages and salanes 10.565.954.386 9.525.008 Statutory social welfare contnbutions 1.500.806.357 1.033.887 Expense related to pension plans and other employee benefits 1.091.362.618 1,549,775 Depreciation on property, plant. and equipment 1.755.784.331 1.281.819 Wntedown on investments 27.373.056 30.478 Value adjustment on, and losses from the disposal of, current assets (except inventones) 1.131.034.798 600,109 Losses on disposal of fixed assets and investments 12.477.003 10.939 Interest and similar expenses 955.824.007 994.955 Taxes charged to subsidianes deemed integrated charged to for tax purposes Siemens AG on income, net assets, and real property
- 884 034.231 344.648.054 539 386.177 1.138.099 other 27,163.646 27.163.646 20.926 566.549.823 1.159.025 Losses absorbed under profit-and-loss transfer agreements 51.765.358 63.739 Transfers to special reserves 465.030.574 19.444 Miscellaneous expenses 5.244.023.336 4.773.036 23.367.985.647 21.342.214 Net income for the fiscal year 1.075,747.272 1.144.584 Balance brought forward from previous year 1,668.492 232 Net income transferred to retarned earnings 501.000.000 572.000 Net income available for distribution 576.415.764 572.816 Pension payments to be reported under $ 159. German Corporation Act On the version vahd through 12/31/1985) amounted to DM 548.1 million.
Pension payments dunng the next five fiscal years (expressed in per cent of the 1985/86 amount) are expected to be. 1986/87: 890'o; 1987/88: 770o; 1988/89: 7800: 1989/90. 810o. 1990/91: 850o
- Aftef ceduction of DM 38 007 09211984 85 DM 37 609 mdhon)in corporate income tax cretts relating to dividends paid t>y coteparnes in the Federal Repotbc of Germany Siemens Aktiengesellschaft The Managing Board According 10 our audit, conducted with a!! 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-Gesellschaf t Aktiengesellschaft Wirtschaftsprufungsgesellschaft Dr Clemm Dr Schulz Berhn and Frankfurt on Ma:n Wirtschaftspruter Wirtschaf tspru er f Munich, January 23.1987 Ondependent auditors) 47
Siemens AG-Balance sheet as of September 30,1986 -> Assets 9/30/1985 Additions Reclassi-Retire-Depreci-9/30/1986 9/30/1985 fications ments ation
- 1. Fixed assets and investments DM 000 Property, plant, equipment, and intangibles Land and equwalent rights to real property with office, factory, and other buildings 1.435.904.756 257.406.513
+ 135,810.598 7.230.801 126.485.233 1.695.405.833 1.435.905 with residential buildings 140.809 - 7.235 133,574 141 without buildings 70.374.285 8.689.137 - 43.107,173 262,995 5.264,076 30.429.178 70.374 Buildings on land not owned 8,320,461 27.101,321 + 36.957.890 2.239 5.935.241 66.442.192 8.320 Plant machinery and facdities 729.085.499 618,462.049 + 163.293.982 9,714.975 479.814.563 1.021.311.992 729.086 Plant and office equipment 1.051.830.357 1,237,834.615 + 72.806.847 10.095.128 1.049.514.263 1.302.862.428 1.051.830 Construction in progress and advances for fixed assets 473,813,189 769.190,942 - 365.762,144 38.939 88.763.720 788.439,328 473.813 Franchises, operating hcenses industnal property and similar nghts, and j hcenses under such rights 1 1 [1.00] 3.769.469.357 2.918,684.577 27.345.077 1.755.784,331 4.905.024.526 3.769.469 investments Investment in subsidianes and associated companies 4.427.538.347 1.596.434.352 19.391.340 27.373.056 5.977.208.303 4.427.538 l Loans granted for contractual terms of 4 years or more 1,949.769 444.554 791.905 1.602.418 1.950 secured by mortgages 1.214.404 [ 1.499] 4.429,488.116 1.596.878.906 20.183.245 27,373.056 5.978.810.721 4,429.488 8,198.957.473 4.515.563.483 47.528.322 1.783.157.387 10.883.835.247 8.198.957 II. Current assets Equipment leased to customers 564.275 Inventories Matenats and supphes 971.078.544 954.821 Work in process 2.083.925.510 2.023,366 Finished products and merchandise 2,185.787.497 2,021.865 Cost of unbilled contracts 3.460.870.904 3.171.128 8.701.662.455 8.171.180 Less - advances received from customers -5.219.921.926 -4.993.320 1 3.481.740.529 3,177.860 1 Receivables and miscellaneous assets Advances to suppliers 295.724.132 249,979 Accounts receivable 4.088.180.893 4,116.151 due after one year 389.406.748 [ 352,307] Receivables from subsidianes 8.825.588.390 8.843.227 Loans subject to 689. German Corporation Act 30.580.494 26,079 Miscellaneous assets 1.262.209.435 1.512.415 14.502.283.344 14.747.851 Treasury stock (par value 4 366.950) 26.201.700 35.879 Marketable securities and notes Shares of stock 1.078,798.072 558.916 Marketable fixed-income secunties 5.405,194.736 5.300.355 Unhsted loan notes 2.369 881.925 3.089.594 8 853.874.733 8.948.865 Liquid funds Notes receivable (including 7,399.557 rediscountable at the Bundesbank) 21.520.964 18.605 Checks 15.532.834 16.173 Cash on hand. deposits at the Bundesbank and in postal giro accounts 26.728.918 21.450 Cash in banks 323.875.565 387.395 387.658.281 443.623 27.251.758.587 27.918.353 111. Prepaid expenses 5 825.758 5.662 l 38.141.419.592 36.122,972 _ 48
Shareholders' equity and liabilities 9/30/1986 9/30/1985 DM 000
- 1. Capital stock Common stock (total number of votes 47.111.013) 2,355,550.650 2.340,550 Preferred stock (total number of votes 923.634)*
46.181.700 46.182 2.401,732.350 2,386.732 Potential Capital 268,668.900 [ 118.669] Authorized Capital 650.000.000 [ 47,000]
- 11. General reserves Statutory reserve 3.644.547,488 3.125.425 Capital in excess of par value contnbuted dunng the fiscal year 825.253,629 519.122 4,469.801.117 3.644,547 Reserve for treasury stock 35.878.770 4.511 Transfer to retained earnings
- 9.677,070 31.368 26.201,700 35.879 Retained earnings 4,158,903.660 3.618.272 Transfer from net income for the fiscal year 501.000.000 572,000 Transfer from reserve for treasury stock 9.677,070 - 31.368 4.669.580.730 4.158.904 9.165.583.547 7,839.330 Shareholders' equity 11.567,315.897 10.226,062 Ill. Special reserves Reserve pursuant to $6b. income Tax Act 482.207,216 18.949 Reserve pursuant to $1, Tax Act on LDCs 81,584,952 92.745 Reserve pursuant to $74, income Tax Regulations 29.977.000 45.468 Reserve pursuant to Section 35. Income Tax Directives 5.988.000 4.216 Reserve pursuant to $1, Foreign Investment Act 431.399 539 600,188.567 161.917 IV. Provisions Provision for pension plans 7.434.200.000 6.997,500 Other provisions 5.758.312.080 _5 520.557 13,192,512.080 12.518.057 V. Liabilities Borrowings with contractual terms of 4 years or more Bank borrowings 307,528.000 246.970 due within less than 4 years 239.288.000 [ 196.200] with contractual terms of less than 4 years Bank borrowings 74.818.449 74.154 302.346.449 321,124 Other liabilities Advances received from customers 550.697,027 527,172 Accounts payable 1.798.295.316 1,791.659 Liabilities to subsidiaries 7.466.963.671 8.105,678 Miscellaneous liabilities 1.905.920.236 1.821.623 with contractual terms of 4 years or more 18.206,329 [ 27.731) secured by mortgages: 421.948 [ 446] due within less than 4 years: 16.854.000 [ 25.026] 11,721.876.250 12.246.132 12,104.222.699 12.567.256 VI. Deferred income 100.764.585 76.864 Vll. Not income available for distribution 576.415.764 572.816 Contingent liabilites on notes 137.525.170 [ 132.043] to subsidianes 2.809.336 [ 6.295) Guaranties 5.802.000 [ 7.777) Warranties 1,420.432.000 [1,779.408] to subsidianes 310.511.000 [ 302.203] Co: lateral for I.abd, ties of others 2.855 668 [ 1.9281 l 38.141.419.592 36.122 972
- In the instances set forth in s23 of the Articles of Association, the preferred stock is entitled to six votes per share 49
Worldwide consolidated balance sheet as of September 30,1986 tin,housanese,0, Assets 9/30/1985 Additions Reclassi-Retire-Depreci-9/30/1966 9/30/1985 fications ments ation
- 1. Fixed assets and investments Property, plant, equipment, and intangibles Land and equivalent nghts to real property with office, factory, and other buildings 3,417,634 609.250
+ 338.474 41.408 294.233 4.029,717 3.417,634 with residential buildings 18.045 1.962 + 16 1,005 412 18,606 18.045 without buildings 142,404 20.933 - 44.736 1,672 5.980 110.949 142,404 Buildings on iand not owned 62.536 44,343 + 7,924 3.806 17,109 93,888 62.536 Plant machinery and facilities 1,706.422 1,202.587 + 283.118 43.461 891,100 2.257.566 1.706.422 Plant and office equipment 1.879 249 1,902.365 + 101,339 37.234 1,540.639 2.305.080 1.879.249 Construction in progress and advances for fixed assets 792,359 1,209.042 - 686,135 17.660 117,999 1,179.607 792,359 l Franchises. operating licenses, industrial property and similar rights, and hcenses under such nghts [1.00) [1.00] [1.00) 8.018.649 4.990,482 146.246 2.867,472 9.995.413 8,018,649 Investments investment in nonconsohdated subsidiaries and associated companies 1,133,130 218.884 172,339 30.655 1,149.020 1,133,130 Otherinvestment secunties 8.237 24 3 8.210 8.237 Loans granted for contractual terms of 4 years or more 23.353 18,012 5.560 1,738 34,067 23.353 secured by mortgages 7.393 [ 7,733] 1.164 720 236.8 % 177.923 32.396 1,191.297 1,164.720 9.183.369 5.227.378 324.169 2.899.868 11,186,710 9.183.369 Adjustment resulting from consolidation 1.618.668 386.311 12,805.378 9.569,680
- 11. Current assets Equipment leased to customers 1.041374 1.014.374 inventories Matenals and supphes 1.884.020 1,728 335 Work in process 3.992.968 3.823.747 Finished products and merchandise 4.060.342 3.624.052 Cost of unbilled contracts 12.199.836 8.586.405 22.137,166 17,762.539 Less - advances received from customers
-14 400,795 -11.065.994 7.736.371 6.696.545 Receivables and miscellaneous assets Advances to suppliers 1.807,960 3.610.360 Less-advances recened from customers - 1.597.832 -3.327.455 210,128 282.905 Accounts receivable 9.581.658 9.084.884 due after one year 1.013.828 [1.051.934) Receivables from nonconsohdated subsidianes 365.390 369.341 Loans within the meaning of 689, German Corporation Act 43.244 39.575 Miscellaneous assets 4.596.982 4.480.075 14.797.402 14.256.780 Treasury stock (par value 4.367) 26 202 35.879 Marketable securities and notes Shares of stock 1 259.120 807.215 Marketable fixed-income secunties 13.520.203 11.844 449 Unbsted loan notes 5.842 886 6.672.720 20 622 209 19.324.384 Liquid funds Notes receivable Oncluding 7.865 rediscountable at the Bundesbank) 112.803 71.664 Checks 44.938 46.207 Cash on hand. deposits at the Bundesbank and in postal giro accounts 49.879 38 666 Cash in banks 1.060.593 _ _.059 251 1 1 268.213 1.215.788 45.493 771 42.543 750 !!I. Prepaid expenses l 32.342 27 440 l l 58 331.491 52.140 870 50
Shareholders' equity and liabilities 9/30/1986 9/30/1985
- 1. Capital stock of Siemens AG Common stock (totalnumber of votes 47,111,013) 2.355.550 2,340.550 Preferred stock (total number of votes 923.634)'
46.182 46.182 2.401.732 2.386.732 Potential capital 268.669 [ 118.669] Authonfed capital 650.000 [ 47,000] II. General reserves Additional paid-in capital 4,416.676 3.591,422 Consohdated retained earnings 7.549,134 6.605.376 11,965.810 10,196.798 111. Minority interests 767,198 683.183 (including 63,106 interest in net income and 44.140 in losses) Shareholders' equity 15,134.740 13 266.713 IV. Special reserves Reserve pursuant to %6b, income Tax Act 482.207 18.949 Reserve pursuant to $1. Tax Act on LDCs 95.390 109.524 Reserve pursuant to 674, income Tu Regulations 43.955 61,186 Reserve pursuant to Section 35. Income Tax Directives 6.066 4.216 Reserve pursuant to 1 Foreign Investment Act 431 539 Reserve pursuant to 63. Foreign Investment Act 31 82 628.080 194.496 V. Provisions Provision for pension plans 9.329.064 8.792.285 Other provisions 14.520.419 14.192.081 23.849.483 22,984.366 VI. Liabilities Dorrowings with contractual terms of 4 years or more Bonds and debentures 1.348.774 1,110.496 secured by mortgages 11,127 [ 15,592] Dank borrowings 956,700 887,000 secured by mortgages 99,130 [ 75,184] Unhsted loan notes and other loans 284.291 260,106 secured by mortgages 41.861 [ 43.664) 2.589.765 2.257.602 due within less than 4 years 1,436.691 [ 951.855] with contractual terms of less than 4 years Bank borrowings 1.294.854 979.812 Unksted loan notes and other loans 270.738 32.109 1.565,592 1.011.921 4.155.357 3.269,523 Other habil. ties Advances received from customers 5.631,702 4.428.082 Accounts payable 4.113.613 3.% 7.893 Liabihties from acceptances and notes payable 21,691 18,166 Liabihties to nonconsolidated subsidianes 468.479 53.034 Miscellaneous habibties 3.606.020 3.269.465 with contractual terms of 4 years or more 172.922 [ 110 8841 secured by mortgages: 442 [ 446] due within less than 4 years: 19.031 [ 26.145] 13 841,505 11.736 640 17.996 862 15 006.163 Vll. Deferred income 145.910 116 316 Vill. Unappropriated net income consolidated 576,416 572.816 Contingent habiht,es on notes 337,964 [ 491,177] Guaranties 369.766 [ 415.3671 Warranties 542.569 [ 509.550} Coliateral for habihtees of others 2.709 j l 1,841] 58 331 491 52.140 870
- In the instances set forth in l23 of the Articles of Association, the preferred stock is entitled to six votes per share 51
Worldwide consolidated statement of income for the period October 1,1985 to September 30,1986 <,nthousaneso,o, g 1985/86 1984/85 Net sales 47.022,975 54.616.321 Change in inventories of finished products and work in process, in the cost of unbilled contracts. and in equipment leased to customers 4.145.275 - 1.820.040 51,168.250 52.796.281 Company-produced additions to plant and equipment 1.066.075 848.860 Total operating performance 52.234.325 53.645,141 Less - cost of matenals supphes. and merchandise 21.199.659 20.727.605 Gross result from operations 31.034.666 32.917.536 Income under profit-and-loss transfer agreements 12.479 14.866 income from investment in shares of nonconsolidated subsidiaries and associated companies 58.444 82 822 Income from other investments 1.444 1,039 Other interest and similar income 2.617.299 2.829.247 Gains on disposal of fixed assets and investments 676.975 108.038 Credit to income from ehmination of provisions 118.027 108.525 Credit to income trom ehmination of speciai reserves 31.524 61,923 Miscenaneous income 3.288.556 2.705,329 including extraordinary income 26.294 [ 59.205] 6.804.748 5.911.789 37.839.414 38.829.325 Wages and satanes 16.891,139 15.795,464 Statutory social welf are contnbutions 2.678.251 2.460.287 Expense related to pension plans and other employee benefits 1.711.876 2.170.663 Depreciation on property, plant. and equipment 2.867.472 2.110.451 Wntedown on investments 32.396 12,750 Interest and similar expenses 786.166 994.443 Tames on income, net assets. and real property
- 1.453.290 2.122.449 other 141.060 152.942 1.594.350 2.275.391 Losses absorbed under profit-and-loss transfer agreements 9.791 13.925 Transfers to special reserves 465,108 19.391 Miscellaneous expenses not itemized elsewhere 9.328.569 11.448.254 36.365.118 37.301.019 Net income for the fiscal year 1.474 296 1.528.306 Ba!ance brought forward by Siemens AG from previous year 1,668 232 Transfers from net income to consobdated retained earnings 890 582 929.768 Minonty interests in consohdated subsidianes' - net income 63.106 54.313
- losses 44.140 28.359 18.966 25.954 Unappropriated net income consolidated 576.416 572.816
- Mer dedxton of CM 40 737 (1984 85 40 343) mil:icn in corporate income tan credits reiarmg to dvaNs pa"1 ty cornpanies en the Federal Repubhc of Germany Siemens Aktiengesellschaft The Managing Board Accordlrig to our audit. conducted with all due professional d+bgence. the Consohdated financial statements and the report relating thereto comply with all statutory requirements Deutsche Treuhand-Gesellschaft Aktiengesei'schaft Wirtschaftsprufungsgesellschaft Dr. Clemm Schnicke Berhn and Frankfurt on Main Wirtschaftsprufer Wirtschaftsprufer Munich January 23.1987 (indr. pendent auditors) 52
Notes to the worldwide consolidated financial statements and to the financial statements of Siemens AG* How we consolidate in addition to Siemens AG, we have included in the worldwide financial state-ments virtually all companies in the Fed-eral Republic of Germany and abroad in which Siemens AG is directly or indi-lg j } rectly entitled to cast a majonty of the i votes, a total of 43 domestic and 163 for-B_ - j ~ l q eign companies. Retirement and other . g ,g g^ . ;l g - employee benefit corporations have not n p ,f' 3" been consolidated, since their inclusion m; % *' ~s '- M 7 would have reduced the reporting value of the financial statements. With no ad-verse effect on the fair presentation of - $mf our asset and income position, we have q. also omitted 150 companies that are .g either inactive or have a low business t, 4 [2 volume. Their sales are less than 10/o of D* consolidated Siemens sales. Eight ma-U 2-jonty-owned companies are not consoli-7,,, ', Np"q '" ( M 4 -?~ ' [v,. [, dated, since they do not operate under ^ j.d.:(M
- 3 4
the uniform direction of Siemens AG. g~ ' ~ ~ Four domestic and 41 foreign com-a panies are consolidated for the first time, Dur/ng the past //ve years, Siemens has there are differences between our meth-while seven foreign companies are no /nvested over DM f.2 bill /on in Berl/n, ods of valuation and those used by our longer included in the consolidated the Company's most /mportant manu-foreign consolidated companies in their financial statements. The newly acquired /setur/ng locat/on. Together w/th ex-local financial statements, and when companies have been included in the pend /tures for traln/ng and cont /nu/ng consolidations have an effect on earn-worldwide consolidated balance sheet education, th/s amounts to more than inos, an allowance for potential taxes is as of September 30,1986. but not in the half a b///lon German marks each year. made if the net result indicates a liability. worldwide consolidated statement of in. We are currently building a plant for Interim statements are used for com-come. This produced an increase of DM optical wavegulde components /n panies which have a fiscal year that dif-1.3 billion in total assets on the world-Berlin, at a cost /n excess o/ DM 100 fers from that of Siemens AG. wide consolidated balance sheet. million. Starting /n 1987, it w/// produce We have prepared the statements of elements for telecommun/ cations and How we translate /nto German marks both the domestic and foreign consoli-data systems, es well as for /ndustrial Our foreign companies' property. dated companies according to uniform automation. plant, and equipment, investment in sub-principles of valuation and classification sidianes and associated companies, and set forth in the German Corporation Act. with a method which closely resembles equipment leased to customers are The consolidation of our investment in that used in the United States. In the translated at the exchange rates prevail-subsidianes is effected in accordance consolidated statements we eliminate ing at the date of their acquisition or pro-intercompany profits; sales, expenses, duction, and their other assets and liabil-
- ne neies and ew. cates remte to toin t;nane.ai and income within the Siemens organiza-ities at the year-end middle rate.
I4I [tNr'aNIe eYtb e sINeIsle tion: and all receivables and liabilities income and expenses shown on the e semens Ao among consolidated companies. When statement of income are translated at 53
l Notes to the worldwide consolidated financial statements and to the financial statements of Siemens AG O average rates for the year, except for The investment in subsidiaries and and merchandise for resale under inven-depreciation on property, plant and associated companies is carried at the tories, at the lower of cost or market. equipment, and on equipment leased lower of cost or market. Furthermore,in Products are carried by our domestic to customers. for which we use the rate the Federal Republic of Germany, wher-companies at the production cost for tax in effect at the time of acquisition or ever lower book values are permined for purposes and by our foreign companies production. tax purposes, they have been used in at production cost as calculated under in 1985/86, the translation of foreign the balance sheets. Loans made as the German Corporation Act. In valuing financial statements produced a nega-investments are discounted and stated inventories we took advantage of all op-tive balance, which we covered from the at their cash value. tions afforded by the tax laws. We also provision for exchange risks formed in Equipment leased to customers is val-made use in Germany of the opportunity previous years. ued in the Federal Republic of Germany to take a lower value for inventories that at the cost of acquisition or at the pro-are subject to major price fluctuations How we value assefs duction cost for tax purposes, and in ( 155 Par. 3 No.1, German Corporation Property, plant, and equipment is val-foreign countries at Siemens production Act,in the version valid through Decem-ued at acquisition or production cost, cost. Scheduled depreciation is taken ber 31,1985). Inventories supplied by less scheduled depreciation. Production according to the usefullife of the pro-consolidated companies are valued at cost includes materials, direct labor, and duct groups. In the Federal Republic of Siemens production cost. A reasonable production overhead; in the Federal Re-Germany, we use the declining balance and sufficient allowance is made for pos-public of Germany it is computed in line method for depreciation insofar as pos-sible declines in value due to prolonged with the laws regulating tax valuation. Sible under the tax laws, and also take storage and reduced marketability. Depreciation is taken on residential, advantage of all opportunities for special In valuing receivables and miscella-office, and factory buildings for a maxi-depreciation for tax purposes. neous assets, we take all perceivable mum of 50 years; on plant machinery We have included materials, supplies, risks into account. Accounts receivable and facilities for a maximum of 10 years; and on plant and office equipment, as a Balance sheet structure 58 3 rule, for 5 years. In the Federal Republic ( n billions of DW 34.7 15.6 h rt rm of Germany we use, wherever permitted. the declining balance method for mov-able assets, at the highest rates permis-sible under the tax laws. We change over to the straight-line method as soon as the latter leads to higher depreciation. In the statements of our domestic consoli. 34.1 liabilities dated companies. we took advantage, as Short-term 17.7 11.9 s, in previous years, of all opportunities for mar e e special depreciation afforded by the tax securities, laws Extraordinary depreciation is taken liquid assets 13.1 10.8 where a lower book value is deemed ne-cessary. Minor fixed assets -in the Fed-eral Republic of Germany, those costin9 he'nfor es 15.1 Shareholders' e nd less than DM 800; in foreign countries, long-term receivables 12.8 equity with varying maximum values - are written Fixed assets 7.0 off completely in the year of acquisition. and investments Intangibles are not capitalized; they September 30,1981 September 30,1986 are valued at DM 1.00. 54
h Siemens worldwide flow-of-funds analysis (in milhons of DM) 1985/86 1984/85 Net income for the year + 1,474 + 1,528. Depreciation and writedowns on fixed assets and investments and on equipment leased to customers + 3,390. + 2,598 g Change in medium-and long-term provisions and special reservca + 1,453 + 2,730 Cash flow + 6,317 + 6,856 Additions to fixed assets and investments - 4,824 - 4,162 Purchase price for newly acquired Siemens companies (less liquid funds acquired) - 1,328 Change in inventories and equipment leased to customers - 4,259 ^ + 1,632 Change in receivables (incl. advances to suppliers) + 1,870 - 1,175 Change in miscellaneous balance sheet items + 25 + 789 Funds tied up in operating assets - 8,516 - - 2,916 Chango in advances received from customers + 2,776 - 3,853 Change in other liabilities - 635 + 269 Cash provided from operations + 2,141, -3,584 - Increase in paid-in capital + 841 5 +. 696 Notes to the balance sheet increase in borrowings + 567 + 2 Additions to property, plant, and Other financing operations + 1,408 -+ 698 equipment during 1985/86 came to DM increase in liquidity + t.350 + 1,054 5.0 (1984/85:3.7) billion. This amount in-cludes DM 400 million from the inclusion of the companies acquired during the Development of liquidity f scal year, without which our capital Liquid assets + 52 - 74 investments amounted to DM 4.6 billion. Marketable securities and notes + 1,298 : + 1,128 Depreciation and wntedowns on addi-herease in liquidity + 1,350 = + 1,054 tions made during the fiscal year came to DM 1.4 billion (chart on page 56), Liquidity at September 30 21,890. 20.540 Siemens owns 39.7 (1984/85: 37.5) million square meters of real property, 590/o of which is located outside Ger-many. We are titleholders of long-term due af ter one year which bear little or no pension benefits payable to employees building rights for the construction of ad-interest have been discounted. who retired prior to September 30,1983 ministrative buildings and sales offices Marketable secunties and notes are and their dependents. Other retirement on land owned by others. Similar rights stated at the lower of cost or market. benefit corporations exist to provide old-on land belonging to Siemens AG have In determining our provisions we age benefits for the employees of our been granted to outside companies that made reasonable and sufficient allow-companies in Germany who are covered have built sales offices and administra-ance for all perceivable risks. The provi-by collective bargaining agreements. tive buildings for us. At the end of the sions for pension plans at Siemens AG Non-recurnng expenses relat:ng to fiscal year, we had leased 59 properties and other domestic companies are set long-term borrowings have not been from leasing firms, of which seven were up acceding to actuarial principles, us-capitalized. located abroad. In 1985/86 the rental l ing the method of computation provided expense under these leases was DM 86 for in the German Act on the Improve-Notes on our finaac/a/pos/t/o't (1984/85: 87) million. ment of Corporate Pension Plans. Inso-DM 1.3 billion wat spent for the acqui-Additions to the investment in non-f ar as necessary, the foreign Siemens sition of new Siemenc companks; this consolidated subsidiaries and asso-companies establish provisions for pen-amount, after deducticq of the aquid ciated companies shown on the world-sion plans according to comparabfe funds acquired,is showq on a separate wide balance sheet relate to acquisitions principles. The provisions for pension ~ne in the flow-of-funds analysis. The of additional holdings and to capitalin-plars of Siemens AG and other domes-funds tied up in operating assets consid-creases, most of them in the U.S.A. and tic companies cover rot only the con-uably exceeded the previous year's Great Bntain. tractual claims of active and retired em- .evel as a result of the acquisition of the On the balance sheet of Siemens AG ployees to whom c.Niective bargaining new companies, the sharp rise in capital this item reflects. in addition, capital in-agreements do not apply, but also 800/o investments and the increase in invento-creases by, and acquisitions of interests of the ret rement benefit claims of em-nes caused by progress made with in, various consolidated subsidiaries in playees covered by collective bargaining large-scale projects. The increase in as-Germany, the U.S.A., and Switzerland, agreements and the nghts of the latter sets was financed by advances received among other countnes. to transitional payments. Siemens-from customers and the cash flow, Retirements consist primarily of the Altersfursoige GmbH is responsible for which decreased to DM 6.3 billion. book values formerly shown for compa-the remainder of Siemens AG's pension The flow-of-funds analysis on this nies that have now been consolidated. commitments to employees covered by page provides further information about Loans relate almost exclusively to collective bargaining rgreements and for the changes in our financial position residential construction loans 55
Notes 13 the worldwlD conxlid;t:d fin:ncl;l st; tim:nts cnd to the financial statements of Siemens AG O i Th3 adjustment resulting from consoli-Depreciation and writedowns on 1985/86 additions to fixed assets and d stion is the difference between the pur-investments in millions of DM chis3 pnce and the value of Siemens' Additions including. Depreciation and ;. int:r:st in te equity of the consolidated reclassifications writedowns i 9 companies at the date of their acquist- ,sy semeng gg semog j tion or initial consolidation; this differ-Land and equivalaat dghts to real property cnca r:sults from the acquisition of with office. factory. cnd other buildings 947.7 393.2 l 93.1 ; ~ 62.5 goodwill or reserves. The increase re-with residential buiiaings 2.0 Z '-2 l 4.83.5 }, without but; dings -23.8 ' - 34.4 5.5. sultrd mainly from the initial consolida-3.6 Buildings on land not owned 52.3 64.1 tion of the companies purchased from Plant machinery and facilities 1,485.7 781.8 .390.8' . 269.0 j GTE and of Siemens Pacesetter, Inc. In Plant and offt::e equipment 2,003.7 1,310.6 813,1 - 616.1f (ddition, this item includes adjustments nd a nc s ixed assets 522 9 . 403.4 -117.6 88.8 r:sulting from the consolidation of Kraft-Property, piant, and equipment - 4,990.5 2.918.7 ' - 1,423.7 ' 1,044.7 w wirk Union AG, Dr.-Ing. Rudolf Hell Go'bH, Osram GmbH, Transformatoren other investment securities 218.9 ~ 1.596.4 3.0 - 2.89 Investment in subsidiaries and associated companies : E-j Union AG, and Siemens Energy & Auto. Loans 18.0 0.5 0.4 m rm fon, Inc. Fixed assets and investments 5.227.4 4.515.6 1,427.1 1.047.5 # la (doiticn to data processing equip-m nt, equipment ler. sed to customers consists mainly of commua. cation equip-As in the previous years, we sold ex-In February 1986, Siemens AG pur-m:nt end systems. The equipment port receivables of Siemens AG, as well chased these shares (total par value DM Sirmans AG leases to customers has as receivables of Siemens companies 15.0 million - 0.60/o of the capital stock) bnn transferred to Sietec on October 1, abroad. at a price of DM 796 per share,in order Loans within the meaning of 89, Ger-to offer them to employees for purchase. 1985. man Corporation Act include loans to as-including the 139,065 common shares of '!nvintories rose by DM 637 million, dus to the consolidaMn of new compa-sociated companies. Included in our m_is-treasury stock held at the beginning of i ni;s. Progress made with 1arge-scale cellaneous assets is our 310/o interest in the fiscal year,351,726 shares (total par prcjects also added considerably to the Allgemeine Verwalturg;,sefischaft for value DM 17.6 million - 0.70/o of the growth in inventories. IndustriebeteiliguvL n >H. which holds capital stock) were sold to employees at On the consolidated balance sheet, an interest le Ct 4:. w schaft AG. a preferential price of DM 258 per share. advances received ano passed on to We have.nv y 1 ? lificant portion At the close of the fiscal year,87,339 subcontractors hsve been deducted of our liquio s,.nds ir, n. 4 etable fixed-in-common shares (total par value DM 4.4 from idvances to suppliers. come securities and unlisted loan notes. million = 0.20/o of the capital stock) Accounts receivable rose by DM 567 Of our total portfolio, approximately DM were still on our books. They are valued million because of tne consolidation of 3.4 billion wil? become due for repayment at DM 300 per share. n;w companies. in 198G/8
- and approximately DM 4.6 bil-At year-end, the authorized capital to-In the cor soi'Jated financial state-lion in the fo' lowing fiscal year. Our secu-taled DM 650 (1984/85: 47) million. The mints, receA ables from nonconsoli-rities holdings include debentures and authorization to issue DM 500 million in d:ted subsidiaries include receivables bonds issued by Siemens companies new shares with subscription right for dus from the employee benefit corpora-and warrants to purchase shares of shareholders and, possibly, for holders tions. In the financ.al statements of Siemens AG.
of equity warrants (authorized capitall) Sirmins AG, receivables from subsidia-During the 1985/86 fiscal year, a total and DM 150 million in new shares for ries also include mainly trade and loan of DM 15.0 million was added to the cap-which the subscription right of share-r cliv;bles from domestic and foreign ital stock by the issue of 300.000 com-holders is enit jed (authorized capitalll) Siem ns companies. mon shares from authorized capital ll. will expire on March 1,1991. DM 15.0 56
of value added DM 25.1 billion-100% 2.3% for our shareholders i/ 3.6% for the - Company 3.1% for our creditors 6.3% for the government 84.7% for our employees 1985/86 million of the previous year's amount 53 million held in the statutory reserve available for distribution of Siemens AG. w s used to increase the capital stock; and DM 26 million in the reserve for Net income for the year again includes th3 remainder expired on March 1,1986. treasury stock) and our share in the no inflationary protits. Inflationary profits The potential capital of DM 268.7 reserves earned by the consolidated arise when the revenues reported in the (1984/85: 118.7) million was increased companies since they became Siemens statement of income are offset by by DM 150.0 million during the fiscal companies. Our share in net income charges based not on the increased re-ynr. This amount is reserved to secure available for distribution, or in the bal-placement cost, but on the lower acqui-rights to purchase common shares of ance sheet loss, of consolidated com-sition cost. When preparing accounts in Siimens AG under the warrants atta-panies was entered in this account, as accordance with the German Corpora-chid to the U.S.$ 833.3 million issue of was the cumulative result of eliminating tion Act such inflationary profits are, z!ro coupon bonds floated by Siemens intercompany profits and consolidating however, offset in whole or in part, for WIstern Finance N.V. in 1986. The re-debts, as well as losses from trans-example when the regular depreciation maining DM 118.7 million covers rights lating foreign currency accounts. Thus, on additions to property, plant, and gm ) to purchase common shares of Siemens unappropriated net income consoli-equipment calculated on the basis of / AG under warrants attached to the U.S.$ dated corresponds to the net income their acquisition cost is increased by 250 million issue of 7 % 0/o bonds floated by Siemens Western Finance N.V. in Shareholders' equity at September a0 (in biliions of oM) 1983. No option rights were exercised during the year under review. 16 16 We added to Siemens AG's statutory 15 15 r: serve the value of the warrants for Si: mens AG shares attached to the 14 14 2tro coupon bonds of Siemens Western 13 13 Finance N.V. and the capital contributed Minority / in excess of par value in connection with 12 interests a 12 5 th) capital increase. 11 11 The reserve for treasury stock was re- -M i U' (( ~I 10 10 duced by a transfer of DM 9.7 million to w retained earnings. We allocated DM 501 9 9 income of DM 1.076 (1984/85: 1,145) mil-M R.etained.5 (1984/85: 572) million from the year's net 8 7.nw,. 8 m lion to Siemens AG's retained earnings. 7 7 m u, . In the consolidated financial state-6 / ^ 6 mints additional paid-in capital reflects / ~" g ~O
- M "T
tho capital contributed in excess of par 5 l, 5 ~ p value in connection with the capital in-4 j 4 craases of Siemens AG and the value of ~ M ~ Adc itional thi warrants attached to the U.S. dollar 3 paid-in capital 3 l bonds floated by Siemens Western 2 2 / ) Finance N.V. We transferred DM 880 g4 j (1984/85: 929) million from the consoli-x m -a dited net income of DM 1,474 (1984/85: 0 ^^ 0 1,528) million to consolidated retained s n . et rnings. They comprise the retained S S S 8 h m ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ cirnings of Siemens AG (including DM 57
r i Not:s ta the worldwid3 c;n:olid t:d fin:nci;l st tim;nts and t3 the financial statements of Siemens AG O speciil depreciation permitted by tax bonds and debentures included in Our bOrrOWingS l laws or when,in the case of company-produc:d additions to plant and Amounts outstanding at September 30,1986 (in millions) Foreign DM cunency (quipmint, of equipment leased to Siemens Beteiligungen AG, 4%% 1983/93 Swiss franc debentures Sfr100 123i custom:rs, and of inventories, valuation Zurich is brsid not on the production cost Siemens-Elerna AE Solna 7W% 1972/87 Swedish crown bonds Skr 3 1: comput d by cost accounting metnods, Siemens Financierings-10%% 1980/87 U.S. dollar bonds U.S.$ 75 227j bt.t on the lower production cost for tax maatschappy NV,The Hague purpos;s. Siemens India Ltd., 15% 1971/92 Indian rupee bonds irs 20 ~ 3: Minority interests reflect the. terests Bombay 15% 1981/92 indian rupee bonds irs 50 8 in ns Mswe,wenna M M8MusMan smnWentures SM i ty nd prof ts or losses of Tran rm - Siemens Western Finance NV, 7%% 1983/90 U.S. dollar bonds torrn Union AG, Reaktor-Brennelement Willemstad, Curaqao with warrants U.S.$250 505, Union GmbH, and other companies. Mi-1986/2001 U.S. dollar zero coupon 5 bonds with warrants U.S.$232 469: nority interests abroad relate principally to our companies in Austria, South Siemens S.A.R.L., Lisbon 1986/91 Floating-rate Escudo bonds Esc 600 ' 8' Africi, Switzerland, Turkey, Italy, india, the U.S.A., Belgium, and Taiwan. Total 1,349 Sirm:ns AG and domestic consoli-dit d companies allocated the maximum rmounts permitted by the tax laws to the Miscellaneous liabilities include ac-basis of bills of exchange. In many coun-provision for pension plans. The amount crued wages and salaries, as well as out-tries promissory notes were executed shown on the balance sheet corre-standing statutory social welfare contrib-to secure borrowings,in conformity with sponds to the value computed by the utions and taxes. local practice. Marketable securities and statutory method in accordance with ac-unlisted loan notes with a value of DM / tu:ri;l principles. The pension commit-Guarant/es and other comm/tments 50.7 million were pledged as collateral m;nts of Siemens AG and its domestic Guaranties and warranties relate prin-for a commitment under a guarantee consolidated companies are fully cipally to loans made to associated com-and for customs duties (Siemens AG cov:rtd by the provision for pension panies, to project-linked buyers' credits, DM 41.6 million for customs duties). We pens and the funds of the retirement to letters of support for credit facilities are committed to make capital contribu-b:nifit corporations. which must be reported, and to warran-tions to other companies of DM 39.7 Othtr provisions rose by DM 395 mil-ties in the normal course of business. In (Siemens AG DM 536.6) million. lion, du s to the consolidation of new the financial statements of Siemens AG, in addition, we have made commit-comp nies. They exist primarily for obli-guaranties and warranties relate primar-ments in the amount of DM 181.3 gations under warranties, employment ily to borrowings of the Siemens com-(Siemens AG DM 17.3) million pursuant expensis. taxes not yet assessed, panies abroad. In the consolidated to @ 171, German Commercial Code, and losits on contracts not yet completed, statements, the guaranteed borrowings DM 3.4 million (Siemens AG DM 55.2 mil-outstanding expenses for contracts themselves are shown in place of these lion) pursuant to @ 24, GmbH Act. tirridy billed, and contract damages commitments of Siemens AG. Siemens AG is legally responsible for for d;lIys in performance. In Germany, according to the guide-the liabikties of Kraftwerk Union AG, due DM 469 million was added to borrow-lines of AKA Ausfuhrkredit-Gesellschaft to its integration, and of Interatom ings by the U.S.$ zero coupon bond is-mbH, we assigned receivables from ex-GmbH, under a notarized deed. sus of Siemens Western Finance NV., port orders, for which we received cred-We are jointly and severally liable as a and DM 336 million as the result of the its from AKA in the amount of DM 264.8 partner in companies formed under the initiil consolidation of new companies. (Siemens AG DM 24.8) milhon on the German Civil Code, through which we 58
O l Telecommun/caf/on networks form one t> j ~5-fFK } tory social welfare contributions contin-of the four key sectors that Slemens /s >' l L N3 ued to rise. rapidly expanding w/th h/gh capitalIn-f W f The expense related to pension plans vestments. Opt /ca/ fibers are the trans-i? A and other employee benefits decreased, m/ss/on med/um of the future In th/s Sh i because special allocations to the pro- /ield. Slecor Gese//schaft /Or L/cht-M gd vision for pension plans had been in-we//enle/termbH & Co. KG, In wh/ch we rW h 'f cluded in the previous year, and Com/ng Glass Works each have a i p. [ The increase in the value adjustment 50% Interest, has started up opt /ca/ on, and losses from the disposal of, cur- //berproduct/on at Neustadt near g rent assets at Siemens AG is due princi-Coburg. Expenditures for this factory pally to higher securities and fo cign came to about DM 100 m////on, exchange losses, while securities and foreign exchange gains are included in s s I have concluded profit-and-loss transfer miscellaneous income. N' Transfers to special reserves con-agreements with other companies (cf. g pages 44 to 46), and as a member of sisted mainly of profits from the sale of various work groups. _N Fanuc shares, pursuant to @ 6b, income Siemens AG has pledged to grantors Tax Act. O Miscellaneous expenses not itemized of loans from public funds that it will not j encumber its real property. [ D: elsewhere are made up principally of sales and administrative costs such as Notes to the statement ofincome travel expenses, rentals, commissions, Net sales include our income from freight, insurance, and general adminis-leasing and license agreements. Berlin, Siemens Beteiligungen AG, Zu-trative expenses, additions to value ad-Income under profit-and-loss transfer rich, and Siemens Overseas investments justments and provisions, securities and agreements was derived primarily from Ltd., Toronto. foreign exchange losses, and losses on Bosch-Siemens Hausgerste GmbH. Interest income was DM 1,831 collections. In the statements of Siemens AG, this (1984/85: 1,835) million higher than inter-Provided that the Annual Meeting of item also includes the income under est expense. Shareholders on March 26,1987 ao-profit-and-loss transfer agreements with Gains on disposal of fixed assets and proves the proposed dividend, the Kraftwerk Union AG and RXS Schrumpf-investments consist mainly of the net amount spent by Siemens AG during technik-Garnituren GmbH. profit from the sale of shares in Fanuc 1985/86 for the Supervisory Board wi!! be income from investment in shares of Ltd., Tokyo. DM 1,017,750, for the Managing Board nonconsolidated subsidiaries and asso-Credits to income from elimination of DM 18.255,131 and for former members ciated companies includes the earnings special reserves resulted from the elimi-of the Managing Board and their surviv-distributed by Bergmann-Elektricitsts-nation of reserves pursuant to '1, Tax ing dependents DM 12,433,832. Werke AG. Act on LDCs and reserves pursuant to Net income for the fiscal year as in the statements of Siemens AG, the { 74, income Tax Regulations. reported in the consolidated financial income from investment in shares of Miscellaneous income includes, in statements is shown net of the results subsidiaries and associated companies-particular, foreign exchange and securi-of consolidations. l consists mainly of distributions by var-ties gains, income from various services, ious consolidated companies in Ger-subsidies and grants for research and Berhn and Munich. December 19,1986 many and abroad, including dividend development Berlin sales tax benefits, payments by Sietec Siemens-System-and capital investment grants. Siemens Aktiengesellschaft technik und Portfoho GmbH & Co. KG, Wages and salaries as well as statu-The Managing Board 59
Manzging Board O Kirlhiinz Kaske, Dr.-Ing. Heads of Groups Heads of Divisions Pres. dent rno Chief E=ecuwe omcer and Corperate Divisions: and Staff Divisions: Hans Baur, Dr.-Ing. Gerhard B6rnecke Telecommuncation Networks and Secunty Systems Group Communecate and informata Systems Group Manufacturmg Karl Heinz Beckurts, Prof.Dr.rer.nat. Corporate nesearch and tecnnoiogy Ernst Gerhardt (deceased July 9 1986) Telecommutucata Networks and Security Systems Group Busmess Admestrate Hermann Franz ElectrcalInstaHates and Automotwo Systems Group Heinz Gumin, Prof. Dr.rer.nat. Central Department for Management Personnel Hermann R. Franz. Dr.rer. nat. Erwin Hardt Components Group Telecommuncate Networks and Secunty Systems Group Pubhc Communication Networks Dmse Max G0nther, Dr.jur. Business Admnstrata Corporate Busmess Admnstrabon (Member of the Managing Board as of January 29.1986) Claus Kessler, Dr.-Ing. Giselher Kadegge. Dr.-Ing. E. h. Commurucata and informate Systems Group Energy and Automation Group industry Dnnses Friedrich Kuhrt. Dr.rer.nat. Med cal Engineermg Group Energy and Automation Group Heribald Nirger, Dr.jur. Power Des.ons (Member of the Managing Board as of June 30.1986) Corporate Fmance / Hans-Gerd Neglein Gerhard K0hne, Dr.jur. Commurncate and informat ori Systems Group Corporate Sales and Marketmg Business Admnstration Hans H. Schlitzberger Horst Langer, Orang. Corpor.re Personnes Energy and Automahon Group industry Dmssons Hans G0nter Vogelsang. Dr.-Ing.E h. (Member of ** Managing Board as of Namber18 1986) Energy and Automation Group Werner Poschenrieder, Dr.-Ing. Communcahon and Information Systems Group Data Systems Dromon Konrad Samberger, Dr.-Ing. Energy and Automation Group Manufacturing and Product Cowe!opment lMemcer of the Managmg Baard as of January 291995) Carl-Heiner Thomas Ene<gy and Automate Group Busaress Adrmn.strat'on 60
Vice Presidents
- Karl-Hermann Baumann, Dr.rer.oec.
Jost Hammerschmidt, Dr.rer. pol. Peter Pribilla caporate France L fmancial statements. corporate sales and Marketog commun.caton and informaten Systems Group ,g intenational opwapons Pnvate Communcahon systems and Networks Hzns-Walter Bernsau Wolfgang Herde Joachim Putzmann Telecommunmaton Networks and secunty systems Group Energy and Automanon Group Central Bernn Admnstranon Pubic Communcahon Networks MarMactunng and Product DevWopment, i Busmess Admemstrabon, Pubhc switchmg systems Maruacturmg Operatons. ununciunng op-anons Abroad Hartwig Rogge Beusch commumcaton an Augeeg snten d intormaton systems Group Rudolf Herz, Dr.-Ing. Piant capora,e,_e Te_=_._ Ne_s.- s._,, s, ems e-p corporce team and in u.ttes Pubhc Communcaten Netwwks. Dankwart Rost, Dr.phil. Transmisson systems Capwee sees and Mneme . Horst Brase C"""*^**"*"'"" ***" ElectrtW Instdesons and Automotw sptoms Group Walter Heywang, pow. ceies-Prof.Dr.rer.nat., Dr.-Ing.h.c. Heinz-Georg Salge cuperate paenen and Tecnnagy En-gy and Automeon Group j. Reinhold Braun Dr.rer. pol. corporce new cn and Deveopment ininneone op-stions and r.id service. nose,cnteo, cones corporce susmess Admastration 4 corpore. uanagem.nt Audit Hanns E. Schreiber, Dr.oec.pubt Horst Hoerster i co,pece Pwsonnd Wolfgang Buchholz Corporate sa6es and Marketmg Corporate Personnel and Educatonal Pohcy sonn Liaison ornce TsnommunEabo.n Newes and securwy systems Group Peter von Siemens Puiac commune on N i Twecornmuniceca cae.etworms Herbert Kirmse s co,,,,,e n,,,,,n,no y,cnn.,y i Energy and Automaton Group Busmess Admastrahon Maau actunng and Product Development. r Hans G. Danielmeyer, comarc :senaca Dr. rer.nat., MBA Peter Sombeek l Caporate Researcn and Tecnnegy Franz Klingan, Dr.rer. pol. Texanmuncahon Networks and secunty systema Group l D'n'tae",l*o,,e corpace susan Admacreon " '"d ' ' * * " " ' special Roducten Eng=enng Rojects 1 Real Estate and Construction 1 Hubert Suckf0ll i Herbert Diehl J0rgen Knorr 1**communcem Newes ed suunty sntem Gr=p tangy and Automeen Group Pubhc communiceon Networks. comm c.ai Depet=nts. induery Dmsons Qg,G'g p,,,,, o,,,,,,,,,,, PutSc sw tenen sotems ap 1 se. conductors Dietrich Ernst, Dr.sc.techn.h.c. Hans-Otto Thrsne En=9y ed Automaton Grap Hans L0ttgert Electncal installations and.Automoteve systems Group p3 solems Enguereg Devoop=ni Ene.,,y,e 4, tom,,n G,. Assoc.ted cei compe s and intecompany coopwean i scn we, [V'Reinhard Ernst Werner ThGrmel j Contracts and Peents Jochen Mackenrodt, Dr.jur. capware newncn ed Tennagy corpwee ranc. caporate Roduci on Engmeenno ~
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Rudolf Frank C"'s*iaana ed Assoc."ted compan** sub Walter Urbach, Dr.rer.nat* j ueecs Eagmeenas G'oup Manufacturmg Energy and Automahon Group Werner Maly incrumeniaton and contros "'*'"*""""8"'"" G0nther Fntsch 8""^*"**'*" Sie9 fried Waller 4 Energy and Automehon Group Commerc=1 Departments. Power Dusion. Energy and Autornahon Group Dietrich Frhr. von Mandelsloh Factory Autornahon systems and industnal Electromes Corporate Business Adtnnstration } Helmfrid F0lling centre seven Erich Wenzel Communecation and Intermation systems Group Dc sycems. sun and ussens Enwgy and Automabon Group Bruno Meiler standard Products i Components Group Hartmut Gebhardt Manufactunng and Product Development-communiccon and ineormeon speems Group Passeve Components and Electron Tubes Hans-Dieter Wiedig. Df.rer.oec. t l communicoon Temmes communc on ed intemeen sycems oroup Data systems, Busmess Admnstrate 1 Anton Michl ( Gerhard Gleissner emp-m Pesonne Gerhard Wiest A corporate soc;W Pohey En gy and,gn,utomaan Group Te communcation Networks and secunty systems Group g,,ging, a " " * " * * * " * " ~ ' ' ' * " " * * *
- Bruno M0ller, Prof.Dr.-Ing.
Peter Grassmann, DrAng Energy and Automahon Group gg Me scal Engmeenne Group Power Genersten and Distnbution i A"' """ ' "o cross.secnons imagma sotems and incapy Ene,gy >n arid b thonties Klaus M0ller-Zimmermann. Dr.rer. pol. i Alexander Grossmann, Dr.oec.publ. capore rance Andreas Wordell centre informeon Deput""' 4 components Grw Busmess Admnstraten Otto-Hermann Groneberg Friedrich Ohmann, DrAng.E.h. feiecommunc on N. twas and suunty systems Group corown sees and uarheas centrai Laborato,,es Klaus Ziegler Regenal othces Admastrahon Cornponents Group sales and Marketmg Friednch Gudden, Prof. Dr. rer.nat. commun.ccen and inemmeon s,mm Group ueec Engineenng Group Pnvale Communicate systems and Networks. Andreas Zimmermann, Dr. cec. i .j_ Group recnneen and op-cens eusmen Adm.niercon corpace seu ed uneno corporm uneima l Werner Haas. Dr.-Ing. Karl-Heinz Preising, Dr.oec. 4 Medical Enenanng Group ErectncalInstauahons and Automotive systems Group j Uey systems Bus. ness Admastration
- January 1.1987 1
i 61
Tha Sicm::ns sharo O Share price and dividend at a high level Thl: year, as in f 984/85, a div/dend of D/v/dend cont /nues at DM 12 The Siemens share: DM 12 on each DM SO share is again The Supervisory and Managing per-Share data be/ng recommended to the Annus/ Boards are recommending that last (a sW retroactW Meet /ng of Shareholders. The market year's dividend, which had been in-pr/c2 c/ the S/emens share was DM 673 creased by DM 2 to DM 12 on each DM on September 30,1986 - DM 68 or f f 4'o 50 share, be retained for the 1985/86 %"u m nor' v in,, th ar ! 32.00 E 30.50l h/gher than a year ear //er. The total fiscal year. For domestic shareholders Dividend 12.00 ; 12.00; annualreturn from an Investment In the per-share dividend, including the tax Slemens shares has averaged 30% credit, will again amount to DM 18.75. gg,nd 18.75 [ 18.75! e,,3, crer the last //ve /iscalyears. If we take into eccount not only the Cash flow 145.40;131.80; dividend increases for 1983/84 and 1984/85 but also the effects of the last Shareholders' equity 263.60 29910j (September 30) D: spite lower sales, income after two issues of subscription rights, the ad-trx:3, at DM 1.5 billion, remained close justed dividend, including the tax credit. pie'[r 30) 605.50 673.00; to the previous year's level during has risen by 630/o or DM 7.25 over the Number of shares 47 7 "48.0 1 1985/86. After deduction of minority in-past five years (see the graph " Dividend (sept. 30. in meons) i 84/85 85/86 t: rests, net income for the year amounts growth"). to DM 30.50 per share, only DM 1.50 less Since the capital stock entitled to than in fiscal 1984/85. At about DM 132 the dividend amounts to DM 2.4 billion, p:r share, the cash flow was barely one-a total of DM 576 (1984/85: 573) million or 110/0 more than a year before. At t: nth lower than in the previous year will be required for the distribution to the DM 746, the quotation at the end of the (s:e the table of per-share data). shareholders. In addition, a substantial 1986 calendar year almost reached last amount of internally generated funds can year's level. Dividend growth again be transferred to retained earn-Dividend increases and higher market in DM (adjusted retroactively) ings. Including the proceeds from the prices have produced a comparatively 1986 bonds with warrants attached and high total return on investments in ,18.751 {18.75 the issue of employee shares, equity per Siemens shares. If all the income from /t share had increased by DM 35.50 to DM dividends (including the tax credit) and 4 ] 299 by the end of fiscal 1985/86. subscription rights was reinvested dur-(14.90 ing the past five fiscal years and if the j!' 304'o totalannualreturn market appreciation is taken into ac-j. ~ s 11.50 :- l;11.951 ' 12.00 12.00' After three years of rapidly rising count, the average annual return would stock market prices, an extensive phase amount to about 300/o. 1 + jwitn tyl credit of consolidation, which also affected 9.55 the Siemens share, began in the spring Resolut/ons prov/de for of 1986. But as shown in the graph DM 800 m////on o/new cap /talstock '.35 7.65 7 " Stock market trend 1982-1986," the To provide adequate capital resources without tax credit index for the adjusted Siemens share for the growth expected in the coming price remained considerably above years, the 1986 Annual Shareholders' the generallevel, as measured by the Meeting agreed to provide for a total of Frankfurter Allgemeine Zeitung's share DM 800 million in authorized and poten-price index. tial capital for the next five years, distrib-Q Q g g g At the end of the 1985/86 fiscal year, uted as follows: j the Siemens share was quoted on the - authorized capital for a par value of DM Frankfurt Stock Exchange at DM 673. 500 million, from which new shares can 62
i l ' w/ The SiemenS share *- Als being currently traded are the As shown by our most recent share-warrants attached to the 1983 dollar holder survey, the number of our domes. 1985/86 monthly highs bonds of Siemens Western Finance N.V., tic and foreign shareholders has grown and lows which evidence the right to purchase substantially over the past four years. inDM one Siemens share at a price of about The Siemens share should continue to 800 DM 248 through May 31,1990. Their be an attractive investment vehicle in the price on September 30,1986 was DM future. The main reasons,in the opinion 750 440, or 170/o higher than a year earlier. of prominent analysts, are as follows: 700 By the end of the calendar year,it was - the above-average growth of the highly DM 473.50. innovative electrical and electronics in-650 l ,l eight German stock exchanges and on - the Company's technical sophistica-The Siemens share is listed on all dustry; 8 600 l l seven other European exchanges. tion and strong commitment to the key 550 Thanks to continuing strong demand, future-oriented technologies in its field; Nj particularly from foreign investors, it - the risk-reducing effect of our broad O z o -1 d 2 <g % l g <g ) ts 8 N c' 4 8 again recorded the highest trading vol-product spectrum and our worldwide 2,, m ume on the German stock exchanges presence, and during the 1985/86 fiscal year. DM 22.5 - the Company's solid financial strength, billion worth of Siemens shares were which gives it a secure basis for the pur-be offered to our shareholders for sub-traded on the four principal exchanges suit of long-term goals. scription; alone - 100/0 of the total sales of the top - authorized capital for a par value of DM 40 German shares. 150 million to provide employee shares as required, and Stock market trend 1982-1986 - potential capital for DM 150 million in (Index of adjusted quarterly closing prices; year-end 1958 -100) common shares in connection with the 1,200 issuance of bonds with equity warrants. In June 1986, to finance our interna. 1,100 A f 1,100 f\\ tional activities, Siemens Western 1,000 1,000 Finance N. V. floated U.S.S zero coupon j y bonds in the amount of U.S.$ 833 million 900 j 900 at an issue price of 58.90/o. They are 800 800 rapayable in June 2001 at their face [ value. Attached to each U.S.$ 5.000 700 700 bond are two warrants, entitling the / holder to purchase a total of 18 common 600 f 600 bearer shares of Siemens AG, at a 500 500 price of DM 620 each. The option right f' may be exercised from July 21,1986 to 400 / 400 [ June M.1992. 300 ' Listed German corporations 300 / Both the bonds and the warrants were (Frankfurter Allgemeine Zeitung's well received by the market. The Frank-200 share price index) 200 furt Stock Exchange quotation for th 100 100 warrant was DM 188 on September 30, 1986 and DM 228.80 on December 31. 1982 1983 1984 1985 1986 63
Ten-year summary -_,- O Septemte 30. 1977 1978 1979 1980 1981 1982 1983 1984 1985 1M6 g g Asxts j Property, plant, and e_quipment 4.613 4.758 5.035 5.515 6,067 6,191 6.146 6.532 8.019 9.995 I investme_nts and consohdatio_n_ adjustment _501 662 739 1,003 906 904 961 1,1_12 1,551 2,810 Fix:d tssets and investments 5,114 5,420 5,774 6,518 6,973 7,095 7,107 7,644 9,570 12.805 Equipment leased to customers 682 685 723 826 986 1,055 1.042 1,027 1,014 1.044 inventones net of advances trom customers 3.289 3.869 4.818 6.539 6.450 5.760 4.460 5,856 6.697 7.736 Receivables and additional assets 7,910 8.824 8,481 9.199 11,092 11.757 11,281 13,194 14.320 14.856 Secunties and liquid funds 8.857 10.101 9 850 9.209 8.568 11.115 16.551 19,486 20.540 21.890 Current tssets. _. - ----. 20,738 -23,479 23,872. 25,773_ 27,096 29,687 _33,334 39,563 __42,571_ _45.526 l Shir; holders' equity and liabilities Capital stock 1.608 1.644 1,768 1,915 1,942 2.052 2.194 2.210 2,387 2 402 General reserves 4,693 5,267 5,899 6.453 6.645 7,337 7 965 8,790 10,197 11.966 Mino,nty interests 490 466 4_49 469 501 591 665 _649 _683 767 Shir holders'. equity _ _ 6,791 7,377 8,116 8,837 9,088 9,980 10,824 11,649 13,267 15.135 Special reserves 198 228 266 265 285 307 258 237 195 623 Provision for_ pensi_on plans 3.205 3.640 4,315 4.671 4.940 5.484 6.752 7,745 8.792 9229 Other provisions 4,691 5.994 6.332 7,162 8,006 8.527 9.493 11,776 14,192 14 520 Provisionsjinc_1. special reserves) 8,094 9,862 10,913 12,098 13,231 14,318 16,503 19,758 23_,179 24,477 Dorrowings _. _. _ _ _ _ __ _ _ _ 2.990 2,716 2_.967 3.810 4.653 3.476 3.373 3.267 3.269 4.155 Additional liabikties 7,720 8.682 7.367 7,240 6.786 8.680 9.390 12.091 11,853 13 988 Llibiliti:s 10,710 11,398 10,334 11,050 11,439 12,156 12,763 15,358 15,122 18.143 l Unappropnated net income consolidated 257 262 283 306 311 328 351 442 573 576 l Total _ funds employed _ _ _ _ _ _ _ 25.85_2 _ 28_899 _ 29;.646 32.291 _ 34.069 36,7_82 _4_0.441 47.207 52,141 5E231 8 W839 m m N82 N 83 NN N 85 r.+ M e n S Of nc __ _ _ _ _ _ _.. __ _26,043 _ 29,655 31,473 32,223 _.37,661 _ _40,723 __41,450 _ _47_,798 53,645__._52 234. Tot:1 operating perfor_mance _includ(ng (ntema_tional operating pertor_mance _ _ _ _ _ j6.670]_ (6.892} _. (7.141 }_ (8._433) (11038((11.700} J12.088} _ [13.492]. (15.320) { 14 O M1 l Employment cost 10.811 11.829 12.796 14.406__ 15.531 17.074 17.844 18.728 20.426_ _21.231 Cost of matenals 9 882 11.431 12,486 12,154 14.302 15 230 15.790 19.219 20,728 21 200 Depreciation _ _ _ _ _ _ 971 1,040 1.184 1,311 1.408 1.474 1.560 1.727 2.110 2 867 Taxes 881 1.024 948 1.000 978 1.035 1,124 1.545 2.275 1'94 including incom_e taxes _ _ _ _ _ _ _ _ (562) _ (713] _ (634]_ (701] _ (683]_ [718)_ (800]_ _ (1.256)_ (1.928] _. { t 2pj 2.848 3 610_ _ 3.377 _. 2.719 _ 4.933 _ 5.172___ 4.330.__ 5.513 __ 6.578 _. 1818 l Other expenses net of non; operating income _ 25.393._ 28,934 _.30,791 _ 31,590.__ 37,152_ 39,985 _40,648 46,732 _ 52,117_ 50.760 i Tot:1 sapenses not of non-oper.ating income _ _ j N:t income on a comparative _ asis. _ _ _ _._650 _ 721__,_ 682 _ _633__._509 _ _738 _ _ 802__ 1_,066 _ 1,528 _ _b474 b Apph.ed to payment of dividends 257 262 283 305 309_ 327 351 441 573 575 i . _ transfer to retained earnings _ _ _351 __ 412 ._384___ _ 287 _ 139__ _335__ _.392 _ _.608__ _ 929_ ___6 0 minonty_ interests _ 42 47 15 41 61 76 59 17 26 G 64
.f% \\ J New orders 197e/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 Domestic companies 20.284 22,819 23,329 28,048 31,822 32,366 33,973 36,359 38,128 37 914 Less-export orders 8,474 8,574 8,829 10.870 11,459 13,645 11,515 12,948 14.189 13.632 Domestic business 11,810 14.245 14,500 17,178 20,363 18,721 22,458 23,411 23,939 24 282 Inttrnational business 14,122 14.803 15,286 18,171 21.214 24,376 22,450 24,713 27,875 25.901 Siemens 25,932 29,048 29,786 35,349 41,577 43,097 44,908 48,124 51,814 50,183 Chinge over previous _ year + 18% + 12% +3% + 19% + 18% +4% +4% +7% +8% -3% l l l Sales 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985 8G V ~ Domestic companies - 19J70 23.462 22.455 24,986 25,847 30,201 28,986 34,333 42,365 35 352 Lsss-export sales 7,590 9,103 8,687 10,330 10.541 12,179 11,708 11,822 13,294 13.252 Domestic business 12,280 14.359 13.768 14,656 15,306 18.022 17,278 22,511 29.071 22.100 Intsrnational business 12,918 14,650 14,254 17,304 19,255 22,084 22,193 23,308 25,545 24.923 Siemens 25,198 29,009 28,022 31,960 34,561 40,106 39,471 45,819 54,616 47,023 Chmge over previous year + 22% + 15% ~ 30/o + 14% +8% + 16% -2% + 160/o + 190/o - 143/o l [ Employees (inthousands) Septemt>er 30, 1977 1978 1979 1980 1981 1982 1983 1984* 1985 0 86 Domestic operations 221 223 229 235 230 220 212 224 240 249 inttrnational operations 98 99 105 109 108 104 101 104 108 114 Siemens 319 322 334 344 338 324 313 328 348
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6/77 1977/78 M78/79 47N N81 198M2 N83 NM M85 m f1 tieW lf1VeS efitS Domestic 1,336 926 1,1 67 1,463 1,358 1,055 1,071 1,445 2,783 3 481 349 451 500 692 6AO 712 620 965 1 36'7 2 F64 /N intsrnatonal Siemens 1,685 1,377 1,637 2,155 1,998 1,767 1,691 2,410 4,150 6,145 _New investments. 39 151' 118 303 55 55 98 183 448 1 55s _Capit_al expenditures 1,64_6 1226 1,521 1,852 1,943 1,712 1.593 2827 3'7 4 WO D_epreciation/ retirements of fixed assets 1,022 1_.0_81 1844 1,372 1,450 1,58S 1,638 1,841 2' 5 3 014 in % of capital expenditures 62 % 88_% 82 % 74 % 75 % 93 % 1030/o 83 % 60 % 600 l
- As of 1984, this figure includes part-time employees.
65
SIEMENS-O i j i O l 6 Substantial parts of the " communication Annual Meeting of Shareholders network of the future" will consist of optical March 26,1987,10:00 a.m. . fibers, which can convey extremely large quanti-Olympiahalle, Munich ties f inf rmanon over long distances. Siecor Address Annual Report'86 Corporation in the U.S.A., an associated com. S emens AG,Wittelsbacherplatz 2 - _ _. _ _ _.9 pany that we own jointly with Corning Glass D-8000 Munich 2 Works, has become the world's largest manu-Federal Republic of Germany facturer of opticalfiber cables. At Neustadt near Coburg, together with Corning, we have built the Telephone Munich 234-0 first factory in the Federal Republic of Germany Telex 52100-0 sie d for the production of optical fibers on an indus-Teletex 898700- siemcw trial scale. Our cover picture shows the drawing Telefax Munich 234-4242 process for optical fibers. Videotex Germany Btx
- 32000 #
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