Contact Where is our largest construction project ever? · Thomas Pﬂ aum/Visum/CONTRAST (page 64)...

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Photo CreditsAll pictures are copyright Siemens AG Austria.

We would like to thank:Markus Rössle (pages 2, 6, 16/17, 18/19, 20/21, and 22/23)GEPA pictures GmbH (page 24/25)Flughafen Wien AG (page 26/27)

Additional photos:Siemens VDO Automotive (page 51)RHI AG (page 54)BSH Hausgeräte Gesellschaft mbH (page 61)Fujitsu Siemens Computers GesmbH (page 61)beyer.co.at images (page 62 left)Thomas Pfl aum/Visum/CONTRAST (page 64)

Concept, Coordination, and ImplementationProject management: Christian Holler-BergerEditing: Elisabeth Dokaupil, Ursula GrablechnerPhoto editing: Sieglinde Hofstätter, Sabine NebenführImage texts: Dietmar DahmenCorporate Responsibility: Erwin Bendl, Angelika KainzMaps/fl ags: Freytag Berndt u. Artaria, A-1230 ViennaEconomic data: Gerold ZakariasCreative direction: Martina MikulkaArt direction: Karoline Eisl, Christina LehnerProduction: Jutta Duschet, Josef KramerTypesetting and lithography: CPZ Zeitschriftenverlagsges.m.b.H.Translation andproofreading: LanguageLink Sprachdienste GmbHPrinting: “agensketterl” Druckerei GmbH

Typesetting and printing errors excepted.

Copyright © Siemens AG Austria 2007All rights reservedPrinted in AustriaOrder number: CC 1000e.1207 4.0

Where is our largest construction project ever?

Central and Eastern Europe is one of Siemens’ most important global markets. Now, a structural tribute to the extraordinary performance and outstanding growth opportuni-ties in CEE is being built in Vienna.Siemens City in Vienna is the larg-est construction project ever un-dertaken by Siemens anywhere in the world. In the first phase of this project, a high-tech communica-tion hub with 3,000 new workplac-es will be built by 2010 at Siemens’ Siemensstraße campus. The con-struction of Siemens City is trans-forming the current campus into one of the world’s most modern business sites with state-of-the-art offices that conform with the green building program, a conference center, and a new, unique dining concept. All of this is a symbol of our confidence in Austria. And in the future that awaits us in Central and Eastern Europe.Siemens AG Austria

Economic Region Austria – Central and Eastern Europe

www.siemens.at

Annual Report 2007

Cover picture:Siemens City ViennaArchitects: SOYKA/SILBER/SOYKAVisualization: beyer.co.at images

1) Property, plant and equipment including equipment leased to customers.2) Not including employees completing compulsory military service,

employees on maternity leave, and apprentices.

3) Including the figures for VA TECH from July 15, 2005

to September 30, 2005.4) Represents exports from the economic region.

Key Figures 2003–2007

in millions of euros 2003 2004 2005 2006 2007

New orders 2,069.5 2,479.7 2,557.3 3,121.3 3,375.9 8.2%

Sales 2,012.3 2,346.7 2,499.9 2,485.4 2,525.4 1.6%

Exports (as a percentage of sales) 48.0% 48.9% 47.0% 49.9% 48.4% –1.5%

Investments1) 31.4 33.1 29.5 34.8 41.9 20.4%(as a percentage of sales) 1.6% 1.4% 1.2% 1.4% 1.7%

Employees 7,864 8,021 7,919 8,236 7,590 –7.8%(as of September 30)2)

Personnel expenses 659.4 629.3 658.1 714.5 713.1 –0.2%(as a percentage of sales) 32.8% 26.8% 26.3% 28.7% 28.2%

Research and 542.6 525.4 540.1 578.4 588.3 1.7%development expenses

Education and 18.6 17.1 18.5 17.7 18.7 5.5%further training expenses

Siemens AG Austria

in millions of euros 2003 2004 20053) 2006 2007

New orders 3,724.8 4,190.2 4,859.7 8,130.2 8,966.0 10.3%

Sales 3,733.3 3,994.2 4,633.6 6,946.5 7,516.3 8.2%

Exports (as a percentage of sales)4) 33.3% 32.2% n. a. 49.9% 57.8% 7.9%

Investments1) 90.9 71.2 94.5 138.5 126.8 –8.4%(as a percentage of sales) 2.4% 1.8% 2.0% 2.0% 1.7%


Personnel expenses 1,079.0 1,071.8 1,285.0 1,841.3 1,889.1 2.6%(as a percentage of sales) 28.9% 26.8% 27.7% 26.5% 25.1%


Education and 25.5 25.2 n. a. 35.8 37.1 3.6%further training expenses

Siemens Group Austria

Key

Fig

ure

s 2

00

3–

20

07

Gro

up

Str

uct

ure

Branches in Austria

Automation and Control

Auto ma ti on and Dri ves (A&D)Wolfgang MorrenthRudolf Preslicka

Indust ri al Solu ti ons and Ser vices(I&S)Kurt HofstädterRobert MonsbergerJosef Kinast

Electronic Tolling (ITS T)Karl StrasserAlexander RennerCorinna Fehr

Building Technologies (SBT)Wolfgang Köppl Christian Knechtel

Siemens Elin Buildings and Infrastructure GmbH & Co (B&I)Herbert WegleitnerWilly StelzerHarald Rest

Siemens Gebäudemanagement &-Services G.m.b.H. (SGS)Gerhard SchreidlMichael RotterJosef Gaupmann

Siemens Bacon GmbH & Co KG (Siemens Bacon)Bernhard BergerHerbert KonradGerhard Schreidl

Siemens VAI Metals Technologies GmbH & Co (Siemens VAI)Richard PfeifferKarl SchwahaSanjeev SinhaWerner Auer

Power

Power Transmission and Distribution; Power Generation (PTD/PG)Gunter Kappacher Johannes Hofmann

Siemens Transformers AustriaGmbH & Co KG (STA)Reinhold ZinglErich BuchgeherJürgen Gressel

Medical

Medical Solutions (MED)Werner BeierJosef Gaupmann

Transportation

Transportation Systems(TS)Gottfried SchusterAndreas Pálffy

ELIN EBG Traction GmbH (ETR)Günther ProkischPeter RauterGerhard Skorepa

Studio- and Mediasystems

BFE Studio und Medien Systeme GmbH (BFE)Horst ErnerthManfred RumpfChristian Luger

Application Management Center

Application Management CenterMid-South-Europe (AMC MSE)Torsten Andres

Financing

Siemens Financial Services (SFS)Wilfried Stuckart

INNOVEST Kapitalanlage AGJohann MaurerKonrad Kontriner

Group Structure

Divisions and Associated Companies

Information and Communications

Siemens Enterprise Communications GmbH (SEN)Josef Jarosch Thomas-Charles Samstag

Siemens IT Solutions and Services (SIS CEE)Albert FelbauerHanns-Thomas Kopf Edwin Schulz

Program and System Engineering

Siemens IT Solutions and Services Program and System Engineering (SIS PSE)Herbert DrexlerGerald Feilmair

Industrial Manufacturing

Siemens Industrial Manufacturing, Engineering and Applications (SIMEA)Friedrich Pressl Ernst Mayrhofer

As of October 1, 2007

Key Account Management (KAM)

BregenzBernd SpratlerPeter Vogel

Eisenstadt (Representative Office)Gerhard Lackner

GrazGerhard GeisswinklerGabriele Leber

InnsbruckWerner RitterWolfgang Richter

Helmut BachnerPeter LagerHans LangGernot PrzestrzelskiHannes RothwanglWolfgang Schneider

KlagenfurtKarl JesacherGabriele Leber

LinzWolfgang LaubWilly StelzerGerhard Gruber

SalzburgPeter KorczakGerhard Gruber

St. PöltenJosef Kolarz-Lakenbacher

CorporateDepartments

General Secretariat (GS)Christian Zwickl-Bernhard

Corporate Communications (CC) Gerald Oberlik

Corporate Press,Company Spokesman (CP)Harald Stockbauer

Corporate Development (CD)Gerhard Stappen

Corporate Innovation Center (CIC)Edeltraud Stiftinger

Human Resources (HR)Gerhard Hirczi

Regional Compliance Officer (RCO)Erwin Ackerl

Revision (REV)Wolfgang Pell

Regional Responsibility (REG)Maximilian MairhoferBernhard Bauer

Corporate Finance (CF) Arnulf Wolfram

Equity Investment Management (BM)Dietmar Pokorny

Corporate Information Office (CIO)Ulrich Bleicher

Global Procurement and Logistics (GPL)Wilhelm Kindlinger

Quality Management and Operational Excellence (QM&OE)Wolfgang Raschka

Sie mens Real Estate (SRE)Franz MundiglerChristian Georg Draxler

Taxes, Legal Services (STR)Wolfgang Buchsbaum

Company Safety (US)Johann Peter Titak

Sie mens d.o.o., Sarajevo(including Banja Luka and Mostar)Ranko AtijasLejla Sokolović

Regions

Sie mens EOOD, SofiaKurt HainschitzWalter SölleWilhelm Kitzhofer

Sie mens d.d., ZagrebUwe GregoriusBranko LamplPeter Hinteregger

Sie mens d.o.o., Podgorica(Sales Company)Kurt SchwarzlmüllerVitomir Stošković

Sie mens d.o.o., BelgradeTihomir RajlićKurt Schwarzlmüller

Siemens s.r.o., BratislavaPeter KollárikVladimír SlezákDale André Martin

Sie mens d.o.o., LjubljanaTihomir RajlićBorut Ogrin

Sie mens S.R.L., BucharestWolfgang HirziAdrian Baicusi Georg Weiher

on prev.year

on prev.year

Key Figures 2003–2007 (see inside front flap)

Statement from the Managing Board 2

Managing Board of Siemens AG Austria 6

Report of the Supervisory Board 8

Supervisory Board and Managing Board Appointments 12

We create the future. 14

The Economic Region 28

Divisions 32

Automation and Control 34

Power 44

Medical 46

Transportation 48

Information and Communications 52

Program and System Engineering 56

Industrial Manufacturing 58

Studio and Media Systems 60

Other Affiliates 61

Real Estate / Financing 62

Reports 65

Management’s Discussion and Analysis 66

Siemens Group Austria 92

Corporate Responsibility 96

Index of Abbreviations 108

Group Structure (see inside back flap)

In the Supplement

Balance Sheet for Siemens AG Austria

Income Statement

Appendix with Notes to the Balance Sheet and Income Statement

Contents

�Statement from the Managing Board

Brigitte Ederer Chairwoman of the Managing Board

Siemens Austria was confronted with numerous challenges over the course of the past fiscal year in spite of the favorable macroeconomic conditions and noticeable economic upswing.

The integration of VA TECH had to be brought to a successful conclusion in a way that took adequate account of the many related social factors. The decision of our parent company in Germany to spin off the group’s worldwide Communications Carrier (COM C) activities also had a major impact on Siemens Austria and eliminated a major source of sales from our portfolio. Individual companies in our CEE economic region lost as much as 50 percent of their business volume after the COM carve-out. On the posi-tive side, the integration of VA TECH and the resulting increase in indus-trial-sector business enabled Siemens Austria to compensate for much of the effect of this structural change, but new strategic plans still had to be drawn up to fill the future gap in business volume, especially for the CEE economic region as a whole.

Dear Shareholders,

� Statement from the Managing Board

One of the highlights of the fiscal year was the launch of the SucCEEd growth project. This program will create an integrated growth area with an optimized structure and will enable us as Siemens CEE to make a major positive contribution to the development of this up-and-coming economic area and to be a key factor behind the dynamic growth of each of these countries. To this end, we intend to better lever-age the potential of the “Tiger countries” at our doorstep. It goes without saying that Siemens Austria’s corporate culture must continue to become more open and international in line with the framework put in place by SucCEEd. We have made important first steps in this direction and must now follow up with more concrete activities.

The portfolio of Siemens Group Austria expanded considerably over the past fiscal year, especially in the industrial and infrastructure sectors. Industrial Solutions and Services (I&S) has doubled its sales over the past years, in large part thanks to the addition of two new elements to the unit’s portfolio: the Reject Power and Refinery Logistics centers of excellence. Siemens Austria has also taken note of current social trends and is increasing its focus on power generation, energy efficiency, and climate protection. One result of these efforts was the development and introduction of AMIS (Automated Metering and Informa-tion System), an innovative control system for the flexible management of power grids. Timelkam power plant is now running at the highest level of efficiency allowed by current technology, 60 percent, thanks to Siemens Austria. Whisper transformers from Weiz are providing power to the “world’s capital” New York City with less environmental impact thanks to their lower noise level. The Archivium, an initiative of Siemens IT Solutions and Services (SIS CEE) and the Austrian Bar Association, is a highly precise electronic archive for legal records with public liability and legal certainty and with maximum data security thanks to the use of secure digital signatures. In the infrastructure sector, new Railjets from Siemens Austria are enabling Austrian Railways to modernize its fleet of trains and lay the foundation for a new era of public transportation in Austria. These projects and more are a testament to the viable technical answers that Siemens Austria has to key challenges of today and tomorrow.

But all of this is only possible because we channel a considerable portion of our business earnings into Siemens Group Austria’s extensive research and development activities. Siemens Austria is one of the biggest corporate researchers in the country. Last fiscal year, we invested a total of €872 million in R&D – 20 percent of all corporate-sector research spending in Austria. This commitment to research and innovation is one of Siemens Austria’s defining characteristics. One important embodiment of this spirit is our employee- and company-financed innovation fund that facilitates development work for novel technologies and solutions before they are ready for market introduction. This fund has already helped make many successful products and solutions possible and has secured or created over 1,150 jobs over the past years. Siemens Austria’s exceptional strength in the domestic R&D sector is a result of this special commitment and has brought important worldwide centers of competence to the country, including for biometrics, tolling, and bogies. With this impressive concentration of know-how and the special expertise of Program and System Engineering (SIS PSE), it’s also no wonder that the new global Siemens IT Solutions and Services division is managed jointly from Munich and Vienna.

�Statement from the Managing Board

Because research and development and the resulting innovative strength are so important for Siemens Austria, we also invest a great deal in training and vocational education. Siemens Austria is currently training roughly 700 apprentices at its facilities in Vienna, Graz, Linz, Innsbruck, and Weiz, and has one of the largest apprentice programs in the country. We see our role as an educator as part of our social responsibility and train far more youths than we require to meet our own staff needs. In this way, Siemens Austria is not only investing in its own competitive strength and future, but also in the market as a whole. Because of our forward-looking education program, the shortage of qualified personnel faced by many companies is not a problem for us. Not to mention the fact that Siemens Austria is considered a highly attractive employer. In a study conducted as part of the European Student Barometer 2007, Siemens Austria was ranked as the second most attractive employer in the country.

Because it is perceived as a company with a long tradition of social responsibility, Siemens Austria takes the compliance efforts of the worldwide Siemens Group very seriously. We stand behind the new chief executive officer Peter Löscher and all of his efforts to ensure transparency in the company’s busi-ness dealings without reservation. Siemens Austria is committed to fair and proper competition without corruption and to the principles of sustainable business. We are confident that the company’s new path of consistent corruption prevention and maximum transparency will defuse the international backlash that arose after the incidents of misconduct became known. For us, this situation that is being perceived as a crisis by some is in reality an opportunity for active, positive change.

Siemens Austria can look back on a highly successful and eventful fiscal year and is striding into 2008 and beyond with confidence and optimism. With our highly capable and competent staff, we will success-fully master all the challenges that we encounter on our path to the future.

Sincerely,

Brigitte Ederer Chairwoman

� Statement from the Managing Board

�

Managing Board of Siemens AG AustriaOperational Responsibility

Brigitte Ederer, Mag.Chairwoman

Direction of the divisions (including Group member companies)Automation and Drives (A&D)Building Technologies (SBT)Industrial Solutions and Services (I&S)Medical Solutions (MED)Siemens IT Solutions and Services Program and System Engineering (SIS PSE)

Direction of the legally independent divisions (including Group member companies)Siemens Bacon GmbH & Co KG (Siemens Bacon)Siemens Elin Buildings and Infrastructure GmbH & Co (B&I)Siemens Gebäudemanagement & -Services G.m.b.H. (SGS)Siemens Health Management GmbH (SHM)Siemens VAI Metals Technologies GmbH & Co (Siemens VAI)

Company management functionsCorporate Communications (CC)(including Corporate Press, Company Spokesman) (CP)Corporate Development (CD)Corporate Innovation Center (CIC)General Secretariat (GS)Human Resources (HR)(including University Liaison Management) (ULM)Regional Compliance Officer (RCO)Revision (REV)

Technical branch management (including Eisenstadt Representative Office)

Georg Antesberger, Dr.

Direction of the division (including Group member companies)Power Transmission and Distribution;Power Generation (PTD/PG)

Key Account Management (KAM)(together with Franz Geiger)

Company management functions Regional responsibility for Bosnia and Herzegovina, Bulgaria, Croatia, Montenegro, Romania, Serbia, Slovakia, Slovenia (REG)

And the regional companiesSiemens d.o.o., SarajevoSiemens EOOD, SofiaSiemens d.d., ZagrebSiemens d.o.o., PodgoricaSiemens S.R.L., BucharestSiemens d.o.o., BelgradeSiemens s.r.o., BratislavaSiemens d.o.o., Ljubljana

Franz Geiger, Ing.

Direction of the divisions (including Group member companies)Siemens IT Solutions and Services (SIS CEE)Transportation Systems (TS)

Direction of the legally independent division (including Group member companies)Siemens Enterprise Communications GmbH (SEN)

Key Account Management (KAM)(together with Georg Antesberger)

Harald Wasserburger, Mag. Dr.Chief Financial Officer

Direction of the divisions (including Group member companies)Application Management Center Mid-South-Europe (AMC MSE)Siemens Financial Services (SFS)Siemens Industrial Manufacturing, Engineering and Applications (SIMEA)

Direction of the legally independent divisionBFE Studio und Medien Systeme GmbH, Mainz (BFE Mainz)

Company management functions (including Group member companies)Equity Investment Management (BM)Corporate Finance (CF)Corporate Information Office (CIO)Global Procurement and Logistics (GPL)Quality Management & Operational Excellence (QM&OE)Siemens Real Estate (SRE)Taxes, Legal Services (STR)Company Safety (US)

All divisions (commercial)

Commercial branch management and commercial REG management

Left to right: Georg Antesberger, Harald Wasserburger, Brigitte Ederer, Franz Geiger

Managing Board

As of October 1, 2007 The current Group structure can be

found on the inside back flap.

�Report of the Supervisory Board

Jürgen RadomskiChairman of the Supervisory Board

Dear Shareholders,The Supervisory Board dealt intensively with the development and prospects of the Company and fulfilled its responsibilities as set forth in the law and in the articles of association of the Company over the course of the 2007 fiscal year.

The Managing Board regularly provided us with up-to-date and com-prehensive information on all material developments in the Company, on business policies and on all fundamental issues of company direction and planning. The Managing Board also informed us of important develop-ments whenever the need arose between our regular meetings.

A large share of our discussions focused on the finalization of the inte-gration of the VA TECH companies into Siemens AG Austria, the restructur-ing of the Company after the carve-out of COM C, and Siemens AG Austria’s responsibility for the countries of the economic region.

10 Report of the Supervisory Board

Supervisory Board MeetingsThe Supervisory Board convened for a total of four meetings during the fiscal year. The following

issues were discussed:

In the first meeting of the fiscal year on December 4, 2006, we examined the development of busi-ness in 2006 and formally approved the annual financial statements for 2006 after careful review. We also discussed the financial and business planning for fiscal year 2007, the status of the carve-out of the communications units COM C and COM E, and the organizational measures for the establishment of Nokia Siemens Networks (NSN). A number of legal changes in the Group were also approved.

In addition to individual legal changes within the Group, the second Supervisory Board meeting on March 15, 2007, focused on the course of business to date, especially the further development of Program and System Engineering (SIS PSE). The Supervisory Board approved a new division of opera-tional responsibilities between the Managing Board members due to the retirement of Gerhard Falch and Christian Habegger.

During the meetings in the third and fourth quarters of fiscal year 2007, the Managing Board informed us of the further development of business, the outlook for the remainder of the year up to September 30, 2007, and the current status of the compliance audits. The Supervisory Board appointed Heinrich Hiesinger to the Audit Committee at the suggestion of chairman Heinrich Hiesinger.

Audit CommitteeThe committee for auditing and preparing the final acceptance of the financial statements of

Siemens AG Austria as of the end of the fiscal year on September 30, 2006, convened on December 3, 2006. No cause was found for objection. Representatives of the balance sheet auditor were present at the meeting of the Audit Committee and provided clarification where needed.

Annual Financial StatementsThe annual financial statements and the management’s discussion and analysis for fiscal year 2006

were audited by the balance sheet auditor appointed in accordance with § 270 Austrian Commercial Code (HGB), KPMG Austria GmbH, Vienna, and were certified without qualification. We have approved the results of this audit after examining the auditor’s report and after an audit of our own.

Representatives of the balance sheet auditor were present at the balance sheet meeting of the Super-visory Board and provided clarifications where needed.

We approved the financial statements prepared by the Managing Board and the management’s discussion and analysis. The annual financial statements are herewith approved in accordance with § 125 paragraph 2 of the Austrian Stock Corporation Act (Aktiengesetz). We also accepted the Managing Board’s proposal for the appropriation of profits for the year.

11Report of the Supervisory Board

Changes in the Supervisory Board and Managing BoardJohannes Feldmayer stepped down from his seat on the Supervisory Board of Siemens AG Austria on

May 24, 2007. We thank Mr. Feldmayer for his commitment and constructive contributions to the work of the Company and the Managing Board during his tenure. Heinrich Hiesinger was newly appointed to the board.

Serving board members Gerhard Falch and Christian Habegger left the Managing Board of Siemens AG Austria on March 31, 2007. Peter Schönhofer stepped down from his post on the board on June 30, 2007. The Supervisory Board would like to thank all three gentlemen for their many years of valuable service to the Company.

The Supervisory Board thanks the Managing Board and all employees of Siemens AG Austria for their great personal effort and commitment to the Company.

Vienna, December 11, 2007

For the Supervisory Board

Jürgen Radomski Chairman

12

Supervisory BoardJürgen Radomski, Dkfm. Dr. rer. pol. h.c. Dr. techn. h.c.Chairman of the Supervisory Board

Member of the Managing Board of Siemens AG, Munich, Germany Date of birth: October 26, 1941

External supervisory board appointments (abroad)ALBA AG, Berlin, GermanyDeutsche Krankenversicherung AG, Cologne, GermanyDräger Medical AG, Lübeck, Germany

Rudolf Gruber, Dr. iur.Deputy Chairman

Former Chairman of the Managing Board of EVN AG, Maria Enzersdorf, Austria Date of birth: December 28, 1933

External supervisory board appointments (in Austria)Bankhaus Schelhammer & Schattera AG, Vienna (2nd Deputy Chairman)EVN AG, Maria Enzersdorf (Chairman)Moeller Beteiligungen GmbH, ViennaMoeller Gebäudeautomation GmbH, SchremsRAG-Beteiligungs-AG, Maria Enzersdorf (Chairman)Rohöl-Aufsuchungs AG (RAG), Vienna (Chairman)Wiener Börse AG, Vienna (Chairman)

Helmut Draxler, Dipl.-Ing. Dr.Member of the Supervisory Board and Executive Committee of the Supervisory Board of RHI AG, Vienna, Austria (since 6/1/2007) Date of birth: April 25, 1950

External supervisory board appointments (in Austria)Linz AG für Energie, Telekommunikation, Verkehr und Kommunale Dienste, LinzOMV Aktiengesellschaft, ViennaRHI AG, Vienna (Deputy Chairman since 7/11/2007) Steiermärkische Krankenanstaltenges. m.b.H., Graz (since 1/23/2007) Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung, Vienna

Johannes Feldmayer, Prof. (until 5/24/2007)Former Member of the Managing Board of Siemens AG, Munich, Germany (until 6/1/2007) Date of birth: October 16, 1956

External supervisory board appointments (abroad)ExxonMobil Central Europe Holding GmbH, Hamburg, GermanyInfineon Technologies AG, Munich, Germany

Johann Haider, Dipl.-Ing.Chairman of the Board Meinl International Power Ltd., St. Helier, Jersey (since 6/26/2007)Date of birth: May 10, 1942

External supervisory board appointments (in Austria)Energie Klagenfurt GmbH, Klagenfurt (Chairman since 5/14/2007) Telekom Austria AG, Vienna

Heinrich Hiesinger, Dr.-Ing. (since 6/18/2007)Member of the Managing Board of Siemens AG, Munich, Germany (since 6/1/2007) Date of birth: May 25, 1960

External advisory board appointments (abroad)BLG Logistics Group AG & Co. KG, Bremen, Germany (since 1/1/2007)

Albert Hochleitner, Dipl.-Ing. Dr. h.c.Former Chairman of the Managing Board of Siemens AG Austria, Vienna, Austria Date of birth: July 4, 1940

External supervisory board appointments (in Austria)AT&S Austrian Technologie & Systemtechnik Aktiengesellschaft, Leoben-HinterbergBAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft, Vienna(until 5/15/2007) Donau Allgemeine Versicherungs-AG, Vienna (until 4/20/2007)Immobiliendevelopment WIENER STADT-WERKE BMG & SORAVIA AG, ViennaInfineon Technologies Austria AG, Villach (Deputy Chairman)

Christian Konrad, Generalanwalt ÖkR Dr.President of the Supervisory Board of Raiffeisen Zentralbank Österreich AG, Vienna, Austria Date of birth: July 24, 1943

External supervisory board appointments (in Austria)AGRANA Beteiligungs-AG, Vienna (Chairman)AGRANA Zucker, Stärke und Frucht Holding AG, Vienna (Chairman until 11/29/2006)DO & CO Restaurants und Catering Aktiengesellschaft, ViennaKURIER Redaktionsgesellschaft m.b.H., Vienna (Chairman)KURIER Zeitungsverlag und Druckerei Gesellschaft m.b.H., Vienna (Chairman)LEIPNIK-LUNDENBURGER INVEST Beteiligungs-AG, Vienna (Chairman)Raiffeisen Zentralbank Österreich AG, Vienna (Chairman)RAIFFEISENLANDESBANK NIEDERÖSTERREICH-WIEN AG, Vienna (Chairman)RWA Raiffeisen Ware Austria AG, ViennaSTRABAG SE, Villach (Chairman until 12/7/2006)UNIQA Versicherungen AG, Vienna (Chairman)Z&S Zucker und Stärke Holding AG, Vienna (Chairman until 12/8/2006)

External supervisory board appointments (abroad)BAYWA AG, Munich, GermanySüdzucker AG Mannheim/Ochsenfurt, Mannheim, Germany (Deputy Chairman)SAINT LOUIS SUCRE S.A., Paris, France

Siegfried Wolf, Ing.Co-Chief Executive Officer Magna International Inc., Ontario, CanadaDate of birth: October 31, 1957

External supervisory board appointments (in Austria)HGI Beteiligungs AG, Graz (Chairman)Österreichische Elektrizitätswirtschafts-Aktiengesellschaft (Verbundgesellschaft), ViennaÖsterreichische Industrieholding AG (ÖIAG), Vienna STRABAG SE, Villach (since 8/17/2007)

External supervisory board appointments (abroad)Magna International Inc., Ontario, Canada

Supervisory Board and Managing Board Appointments

As of October 1, 2007This list does not include appointments to Group boards.

13

Brigitte Ederer, Mag.Chairwoman of the Managing Board of Siemens AG Austria, Vienna, Austria Date of birth: February 27, 1956

External supervisory board appointments (in Austria)Austria Wirtschaftsservice Gesellschaft mit beschränkter Haftung (Deputy Chairwoman since 9/19/2007) B & C Holding GmbH, ViennaBoehringer Ingelheim Austria GmbH, ViennaUnilever Austria GmbH, Vienna

Georg Antesberger, Dr.Date of birth: October 30, 1948

Gerhard Falch, Dipl.-Ing. (until 3/31/2007)Date of birth: July 13, 1948

Franz Geiger, Ing.Date of birth: May 21, 1950

External supervisory board appointments (in Austria) TecNet Equity Technologiebeteiligungs-Invest AG, St. Pölten (since 12/19/2006)

Christian Habegger (until 3/31/2007)Date of birth: August 6, 1944

External supervisory board appointments (in Austria)VA Intertrading Aktiengesellschaft, Linz (since 5/8/2007) VA TECH HYDRO GmbH, Vienna

Peter Schönhofer, Mag. (until 6/30/2007)Date of birth: February 13, 1962

Harald Wasserburger, Mag. Dr.Chief Financial Officer of Siemens AG Austria, Vienna, Austria Date of birth: April 28, 1952

External supervisory board appointments (in Austria)Allianz Invest Kapitalanlagegesellschaft mbH, Vienna (since 2/7/2007)

Managing Board

Friedrich HaglChairman of the Central Works Council of Siemens AG Austria, Vienna, AustriaDate of birth: October 26, 1955

Walter Krippl, Ing.Deputy Chairman of the Central Works Council of Siemens AG Austria, Vienna, AustriaDate of birth: January 13, 1950

Josef UtzigDate of birth: August 23, 1951

Alfred Zimmermann, Ing.Date of birth: October 7, 1963

Honorary PresidentsHeinrich v. Pierer, Prof. Dr. iur. Dr.-Ing. E.h.Former Chairman of the Managing Board of Siemens AG, Munich, Germany Date of birth: January 26, 1941

External supervisory board appointments (abroad)Deutsche Bank AG, Frankfurt am Main, GermanyHochtief AG, Essen, GermanyMünchener Rückversicherungs-Gesellschaft AG, Munich, GermanyThyssenKrupp AG, Düsseldorf, GermanyVolkswagen AG, Wolfsburg, Germany

Josef Staribacher, Dipl.-Vw. Dr.Date of birth: March 25, 1921

Walter Wolfsberger, Dkfm. Dr.Date of birth: June 19, 1930

Elected by theWorks Council*

Supervisory Board and Managing Board Appointments

As of October 1, 2007This list does not include appointments to Group boards.

* Elected to the Supervisory Board by the Works Council pursuant to

§ 110 paragraph 1 of the Austrian Labor Constitution Act.

We create the future.

The future only comes once. But it comes in different scenarios, in different versions. The decisions that we make today will determine how our future looks.

Siemens CEE is working to create a future in which concerted, responsible action achieves more than insular action. Siemens is working to build a future of networks.

14 We create the future.

We recognized the potential and benefi ts of networks long ago. Siemens built the Indo-European telegraph line in 1870 and laid one of the fi rst transatlantic cables in 1874. Today, networks are becom-ing denser, faster, and above all more intelligent.

Siemens Austria is proud to have built up an innovative network for recruiting, training, and continuing education together with the regional companies that now covers all eight SEE countries in our economic region. We have already established a strong tradition of cross-border exchange, and CEE-wide projects are an important source of business growth. Our well-founded technical, logistical, and material-specifi c expertise and our deep understanding of cultural nuances enable us to give our customers the local support they need to expand onto new target markets quickly and effi ciently.

We know that it is fi rst and foremost our staff members who turn our network concept into a living system – and we want to thank each one of them for this. In Bosnia and Herzegovina, Bulgaria, Croatia, Montenegro, Austria, Romania, Serbia, Slovakia, and Slovenia.

We can look inside without opening it.

Throughout its entire history, Siemens has always been a pioneer in medical diagnostic technologies. From the fi rst X-ray machines all the way to the most modern devices that let doctors overlay X-rays and magnetic resonance tomography scans of the body to create realistic three-dimensional images with two cameras, to rotate these images, and to send key informa-tion to specialists in real time. Soon, the resolution of these images will be so fi ne that doctors will even be able to view the tiniest of details. With the new 7-Tesla magnetic resonance tomography scanner from Siemens, researchers can watch the brain at work. The most minimal changes lasting the briefest of moments can be recorded perfectly and then compiled on the computer into exact, detailed models of the most complex organ in the body. Siemens is also a leader in the develop-ment of new therapy equipment. More accurate radiotherapy devices from Siemens deliver their dosages exactly where they are needed and allow patients to be treated with fewer side effects.

www.siemens.at/zukunft

To the right in the background, you can see a power plant.

Experts are predicting a 500,000 megawatt energy shortfall in the coming years. Siemens is helping to close this gap. With clean power plants, effi cient energy transmission, and optimized IT solutions for power producers. The ten leading technologies in Siemens’ portfolio alone have the potential to reduce CO2 emissions from technical systems by 40 percent by 2050. Our solutions range from CO2-free power plants through the use of syngas to wind parks, low-loss power transmission, biomass power plants, and innovative fuel cells. In Slovakia, we are optimizing the Elektrárne Nováky thermal power plant to increase its operational safety, cut its environmental impact, and return 80 percent of the water that is used to the plant. In Bucharest, we modernized and upgraded Romania‘s largest transformer substation. And: Siemens is the only provider that offers perfectly coordinated key components for power plant, automation, and information technology systems. We are set to maintain our leading position into the future.

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Say yes to “are we there yet?” sooner.

Complex problems require intelligent solutions. That’s why Siemens established the Global Centers of Innovation. Vienna is home to the global center for tolling systems, for example. Here, satellite-based tolling systems are developed that control automobile traffi c and accurately bill road charges without complex terrestrial infrastructure. A system to automatically verify highway toll stickers is also being tested by Siemens near Vienna. And Siemens is of course also a leader in ensuring driver safety. From automatic early warning systems for black ice, fog, or wrong-way drivers all the way to state-of-the-art tunnel systems. ASFINAG, which is responsible for operating and maintaining Austria’s highways, relies on Siemens’ intelligent traf-fi c information and management system. This concept increases the capacity of the country’s highways, lowers infrastructure costs, and has cut the number of accidents by 40 percent. Siemens has demonstrated its competence and the reliability of its tunnel safety and control systems in numerous modernization projects. According to an analysis by the Austrian automobile club ÖAMTC, the Herzogberg tunnel is the safest in the country. Now, we are bringing fi fteen tunnels and underpasses up to the latest standard for ASFINAG with the most modern intelligent control systems.

Our solution to rush hour traffi c is twenty meters below the surface.

Surging urbanization and the growing challenges being posed by climate change are demanding new solutions for the fast, safe, and above all environmentally friendly transportation of more and more people. Siemens has been building metro vehicles, passenger coaches, and bogies in Vienna and Graz for over 150 years. Nearly 2,500 brand new vehicles left Graz for use around the world and well over 400 complete vehicles were built in Vienna over the course of the business year. However, Siemens is not only famous for its legendary reliability, but also for a new all-time fi rst. Right at the begin-ning of the business year, we set a new locomotive world speed record of 357 kilometers an hour with our ES64U4 electric multi-system locomotive. Safely, with zero emissions and without harming the environment. Siemens’ comprehensive expertise is also a key to its success in regional public transportation solutions. We are modernizing 67 of Austrian Rail-way’s new designer passenger trains. In Vienna, Siemens is a key player in the expansion of the metro system for the 2008 European soccer championships. And the city is also relying on our solutions for the announced “Decade of Viennese train stations.”

We secure everything – but the goals.

Big events require big plans. From how to transport tens of thousands of fans all the way to ensuring adequate safety and security in huge stadiums. The 2008 European soccer championships are one such major event. So it’s no wonder that the hosts are trusting in Siemens. We are supplying technical equipment for numerous stadiums, and also expanded various transport systems. Siemens is behind the web-based “Challenge 08” portal of the Austrian Football Association. And is also a trusted partner for other major projects throughout CEE. From biometric access control systems for rooms, buildings, and data all the way to video surveillance systems that cover entire city sections. From the implementation of highly sensitive safety and security systems all the way to major public lighting system modernization projects in Bratislava, Sibiu, and Cluj-Napoca. Siemens is also responsible for maintenance and operation at the new Praterstern train station in Vienna after installing state-of-the-art automation and control systems in the structure. Some 2,500 data points monitor the heating, ventilation and cooling systems, the smoke extraction systems, the light controls, and the heat, cooling, and water meters. Services that benefi t tens of thousands of people every day.

Siemens inside.

Great achievements are not possible without reliable partners. Which is why many leading industrial companies turned to us again over the past business year. We developed a complete concept for Vienna International Airport: from runway light-ing all the way to air circulation, we control, monitor, and protect practically everything at the new airport. But we don’t only bring people to new heights. We supplied BMW in Dingolfi ng with new robots, and we handed a turnkey hot-rolling plant over to Mittal Steel in Poland in August 2007. In Vorarlberg, we implemented a made-to-measure fi re protection solu-tion for the traditional papermaker Rondo Gahnahl AG, and Mondi Packaging in Carinthia is now more ready for the future than ever with a specially developed drive system for its paper machines. Twenty-fi ve drives with water-cooled frequency converters from the Siemens Simovert Masterdrives family have been running there since July 2007. And of course OMV, Wienstrom, Stiegl brewery, and all the other industry leaders who are achieving success with us. Siemens makes great things happen. And will keep on doing so.

28 The Economic Region

Bosnia and Herzegovina

Area: 51,209 km2

Population: 3.8 mnGDP: EUR 9.8 bnav. GDP growth*): 6.5%

Economic growth has maintained its momentum in Bosnia and Herzegovina, though investment activity in the public sector has been slowed by the time required to form a government. The current political reforms should result in the ratification of a stabilization and association pact with the EU.

Siemens seized many good opportunities in the country. Power Transmission and Distribution worked on the Power III Scada project and also on the expansion of the Republika Srpska government building together with Building Technologies. The industrial divisions also won a number of contracts, including from Agrana in connec-tion with the construction of a sugar factory. Medical Solutions supplied medical equipment to the private cardiological clinic in Tuzla and to the clinical center in Sarajevo.

Siemens completed a number of projects for municipal bodies, including a sewage treatment plant in Breza, traffic signal systems and parking ticket machines. Business activities in this area are to be expanded in the future. After the modernization of the street lighting in Laktaši, another contract was won for the public lighting

systems in Dopboj in September 2007. Transportation Systems (TS) is modernizing SATRA’s trams in coopera-tion with local partners. In the first project of its kind for Siemens in Bosnia and Herzegovina, the company was commissioned with the implementation of SAP at the electricity company Elektroprivreda Mostar.

In Medical Solutions, the primary focus is holding Siemens’ high market share. Business in Power and Industry is also to be expanded.

Bulgaria

Area: 110,994 km2


Bulgaria joined the EU in January 2007. Economic growth is expected to remain at around six percent per year. Unemployment has fallen drastically recently, and will continue to decrease.

Business developed especially well for Power and Building Technologies last year. Now, a key focus is the further improvement of Siemens’ position in the power sector. Plans for the significant expansion of PTD’s manufacturing plant in Botevgrad have been completed. PTD is also implementing a large number of projects for the modernization of the country’s power grid.

Automation and Drives also achieved excellent

Siemens Austria is responsible for an economic region comprising nine countries in Central and South Eastern Europe, one of the fastest growing parts of the world. Even though the current economic cycle will peak in 2007, growth is still expected to continue at average rates in excess of four percent because of ongoing structural reforms and harmonization with western European standards. Siemens is in an optimal position to profit from this situation thanks to the close collaboration between its regional companies and the central company divisions. Additional value is created locally by leveraging the innovation potential in each of the region’s countries, for example in product engineering and software development. Two key pillars of our strategy for driving business growth are the establishment of international competence centers and our focus on the most promising sectors such as energy, transpor-tation and industry.

The Economic Region

*) Average GDP growth from 2006 to 2009

29The Economic Region

ÖSTERREICH

Bulgaria

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Bosnia andHerzegovina

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Slovenia

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Slovakia

Monte-negro

results and is now a market leader in the country. The opening of the EU’s structural fund for Bulgaria should also bring interesting new business opportunities for Industrial Solutions and Services, Transportation, and Medical Solutions.

TS is working on the expansion of the metro system in Sofia. Facility Management plans to increase its focus on municipal projects, including on the modernization of public lighting systems.

Increased business at the Graphic Engineering Center Sofia (building automation), which has had the status of an internationally active competence center since May 2007, significantly increased local value creation during the business year.

Croatia

Area: 56,594 km2


Croatia is investing a great deal in attaining EU member-ship in 2009. To this end, structural reforms are currently underway. Foreign direct investment inflows are increasing rapidly, in part as a result of privatization activities. A&D won a contract from the national petrochemicals company in the business year that solidified its position in the process industry. Simatic

PCS 7 was installed at DINA-Petrokemija, making it the most modern petrochemical plant in Eastern Europe. The industrial divisions are also profiting from collaboration with JANAF (crude oil transport) in connection with the modernization of the entire Croatian pipeline network. Power Generation is working on projects at major power plants in Šoštanj and Zagreb.

Siemens IT Solutions and Services is one of the leading IT services providers in Croatia and a preferred partner for infrastructure projects. The pilot phase of the Schengen-compatible national border control system (NPMIS) was recently concluded.

Facility Management and Services celebrated the signing of a large contract that added a third major banking group to its client list. A central project for Building Technologies was the installation of a building automation system in the EuroTower Zagreb. Medical Solutions landed contracts with government-run and private clinics. A 3-Tesla MRT scanner was installed at the Zagreb brain institute.

Siemens Croatia is following the general Siemens strategy and is focusing on global megatrends such as urbanization and demographic change. Individual solutions were drawn up for the cities of Zagreb and Split.

Growth rates in the economic region under Siemens Austria’s management will average above four percent in the coming years as a result of the structural reforms and convergence process.

Siemens CEE(As of October 1, 2007)

Siemens d.o.o.,Sarajevo, Bosnia and Herzegovina(incl. Banja Luka and Mostar)ManagementRanko AtijasLejla Sokolović

Siemens EOOD,Sofia, BulgariaManagementKurt HainschitzWalter Sölle Wilhelm Kitzhofer

Siemens d.d.,Zagreb, CroatiaManaging BoardUwe GregoriusBranko LamplPeter Hinteregger

Siemens d.o.o.,Podgorica, Montenegro(Sales Company)ManagementKurt SchwarzlmüllerVitomir Stošković

Siemens AG Austria,Vienna, AustriaManaging BoardBrigitte EdererGeorg AntesbergerFranz GeigerHarald Wasserburger

Siemens S.R.L.,Bucharest, RomaniaManagementWolfgang HirziAdrian BaicusiGeorg Weiher

Siemens d.o.o.,Belgrade, SerbiaManagementTihomir RajlićKurt Schwarzlmüller

Siemens s.r.o.,Bratislava, SlovakiaManagementPeter KollárikVladimír SlezákDale André Martin

Siemens d.o.o.,Ljubljana, SloveniaManagementTihomir RajlićBorut Ogrin

Economic statistics from September 30, 2007

Economic Region CEE

Area: 712,540 km2


30 The Economic Region

Montenegro

Area: 13,812 km2


Montenegro attained its independence in 2006 and has one of the fastest-growing tourism industries of any country. A model Siemens One project was made possible by the joint efforts of the local Siemens company in Serbia and Siemens AG Austria. A comprehensive hotel solution involving multiple Siemens divisions was installed at the “James Bond” hotel Splendid in Monte-negro. Building automation, electrotechnical, safety, security and fire protection systems, the communication system, and the integrated guest and room management systems all work together to allow the optimal operation of the facility. The booming tourism industry will bring additional business opportunities for infrastructure and power supply projects.

Austria

Area: 83,871 km2


The Austrian economy enjoyed above-average growth over the last two years. Investment activity, which is an especially important source of business for Siemens, grew even faster than the economy as a whole at a rate of 6.3 percent (and equipment investments at a rate of 8.0 percent). It appears that the economic upswing and investment activity have reached their peak. The integration of the acquired VA TECH companies was completed successfully during the business year, and close collaboration with Siemens VAI was established throughout the economic region. The carve-out of the communications subdivisions was also brought to a successful conclusion. Business with major industrial customers increased over the year. Transportation Systems secured its market leadership by winning a number of major projects and also increased its traction systems offerings. As demand for power increases, the Power division has been generating additional business by growing its local and service business activities.

Romania

Area: 238,391 km2


Romania’s economy has continued to grow rapidly after its accession to the EU. Two main drivers of this growth are the privatization of state-owned companies and tax cuts. Access to the EU structural fund is also supporting this expansion. Siemens saw new business opportunities in Transportation, Power and Industry. FORTE BUSINESS SERVICES, a subsidiary of Siemens IT Solutions and Services, is assisting the federal government in its implementation of EU standards. Clients include the finance and justice ministries. Industrial Solutions and Services became one of the leading players in the Romanian industrial sector after it acquired FROSYS S.R.L. in February 2007. FROSYS specializes in electrotechnical systems and automation. Key orders in Romania include contracts for the delivery of 100 Desiro trains and rail infrastructure to the national rail company. Medical Solutions cemented its market position by completing additional projects in the private sector. PTD modernized the Bucharest South transformer substation, which provides electricity for one third of Bucharest. Automa-tion and Drives also bolstered its market position and expanded into new segments. In Sibiu, an A&D plant has been turning out line safety switches since 2004. The A&D subsidiary Sykatek, which is also located in Sibiu, specializes in metalwork. Industrial Solutions and Services installed a sewage treatment plant in Constanţa harbor. Electronic components are manufactured for customers such as BSH (Bosch Siemens Hausgeräte) in a SIMEA subsidiary plant in Sibiu.

Serbia

Area: 88,361 km2


Serbia is enjoying vigorous economic growth that is also generating good business opportunities for Siemens. Medical Solutions installed a PET/CT scanner at the Institute for Oncology in Vojvodina. This is the first device of its kind in South Eastern Europe. The most important success in the power sector was the startup of two transformer substations that form the backbone of

*) Average GDP growth from 2006 to 2009

31The Economic Region

the power supply for Šumadija and the area along the Morava. The construction of a transformer substation for Belgrade is also currently underway. A&D is enjoying continuous business growth.

The acquisition of ELPAS laid the foundation for the expansion of business for Building Technologies in Serbia. One of the first major orders was for a security system for the bank Raiffeisen (more than 100 branches) and the Delta City shopping center in Belgrade.

Transportation Systems won infrastructure contracts and will be supplying equipment for the Belgrade tram system. I&S is building a city traffic control center in Belgrade and is also delivering technical systems for Strazevica Tunnel.

Slovakia

Area: 49,035 km2


High growth rates and falling unemployment are a testament to Slovakia’s continuing economic upswing. One of the key focuses for the country’s economy now is the adoption of the euro in 2009. Siemens is one of the largest investors and employers in Slovakia.

Major orders fulfilled by Industrial Solutions and Services included electrotechnical equipment for a galvanizing line at US Steel in Košice and sorting systems for the Slovakian postal service. Automation system sales were brisk in the rubber and tire manufacturing indus-tries. Transportation Systems is supplying infrastructure for the rail line between Bratislava and Nové Mesto nad Váhom as part of a pilot project for ETCS technology. Medical Solutions delivered state-of-the-art medical equipment to private and publicly operated cardiology facilities. Facility Management modernized the public lighting in the cities of Bardejov, Trenčín, and Žilina. Building Technologies provided the technical building systems for the City Business Center. PG continued the reconstruction of the transformer substation in Leme-sany. Siemens IT Solutions and Services is one of the three largest providers of IT systems in Slovakia and supplied computer workstations to the ministry of the interior and implemented SAP at the universities, among other projects. SIPRIN s.r.o. was again successful in the engineering of solution concepts for industrial automa-tion. The largest order that is currently being fulfilled is for the Bratislava water supply system.

In the future, activities for metals and mining, power, automation, rail infrastructure and public lighting are to be expanded further in the existing competence centers. The branches in Žilina and Košice are also being expanded so that the market potential can be tapped better.

Slovenia

Area: 20,273 km2


Slovenia will be assuming the EU council presidency at the beginning of 2008. The economy is still growing strong at a rate of 5.2 percent according to the most recent statistics. Automation and Drives again enjoyed very good business in the country in 2007, whereby Simatic is one of the keys to this success. Sales are now also increasing for process automation and low-voltage systems. I&S successfully completed its flatness control project at the Acroni steel works. Power Generation completed the modernization of Block 5 of the thermal power plant in Šoštanj, including the delivery of two gas turbines, on schedule. Medical Solutions delivered the first 3-Tesla MR scanner to the Ljubljana clinical center. To keep pace with the growth of the market, the division is collaborating with Siemens IT Solutions and Services to offer healthcare solutions. Transportation Systems is a market leader for signaling and control systems. After twenty electric locomotives were delivered to Slovenian Railways, another order was placed for twelve more.

SBT increased its business significantly through the integration of A Koda. Now, SBT has the largest head-count of any Siemens division in Slovenia and is one of the leading providers of fire protection systems in the country. The unit also focused on end-to-end technical building management projects. Large orders included work for Casino Šentilj, a main warehouse for the supermarket chain Hofer, Hotel Palace and the branches of NLB-Bank.

Siemens now plans to tap the market potential offered by its full product and service portfolio using competent local teams and with a special focus on service and solutions.

Economic statistics from September 30, 2007

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Automation and ControlAutomation and Drives (A&D), Industrial Solutions and Services (I&S), and Building Technologies (SBT) and the units Siemens Elin Buildings and Infrastruc-ture (B&I), Siemens Gebäudemanagement & -Serv-ices (SGS), and Siemens VAI Metals Technologies (Siemens VAI) offer products, systems, solutions, and services for industry, building automation, and infrastructure.

PowerPower Transmission and Distribution/Power Generation (PTD/PG) and Siemens Transformers Austria (STA) offer solutions ranging from elec-tricity generation all the way to the transport of electrical power from the plant to the consumer.

MedicalMedical Solutions (MED) stands for innovative products, complete solutions, services, and consulting for the healthcare industry.

TransportationTransportation Systems (TS), including ELIN EBG Traction (ETR), Siemens Transportation Systems (STS A), and Siemens VDO Automotive (SV), offers products and solutions for efficient and environ-mentally friendly mobility.

Information and CommunicationsSiemens IT Solutions and Services (SIS CEE) and Siemens Enterprise Communications (SEN) offer a broad spectrum of information and communica-tion solutions.

Program and System EngineeringProgram and System Engineering (SIS PSE) pro-vides software development services for Siemens AG’s worldwide business activities from within the newly founded Siemens IT Solutions and Services.

Industrial ManufacturingSiemens’ electronics plants (SIMEA) and Siemens Mechanical Solutions (MWW) work together as a coordinated manufacturing group and offer com-plete electronics solutions.

Studio and Media SystemsBFE Studio und Medien Systeme offers planning, engineering, and implementation services from a single source for complete studio and media systems.

Other AffiliatesComprises BSH Hausgeräte Gesellschaft mbH and Fujitsu Siemens Computers GesmbH (FSC).

Real Estate / FinancingReal Estate comprises the property management and utilization activities of Siemens Real Estate (SRE) in the CEE economic region. Financing comprises Siemens Financial Services (SFS) and the financial services providers Siemens Pensionskasse (SPK), Siemens Mitarbeiter-vorsorgekasse (MVK), Siemens Pension Data Services and Consulting (SPDSC), and INNOVEST Kapitalanlage AG.

Our Divisions

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34 Automation and ControlAutomation and Drives

Automation and Drives’ (A&D) business centers on the sale of products and systems from its Totally Integrated Automation family. Within this range, low-voltage prod-ucts for building automation solutions (Totally Integrated Power) are a key focus of business and a major factor in the unit’s excellent market position. A&D is also a suc-cessful process expert for companies in the automotive, chemicals, pharmaceuticals, machine building, petro-chemicals, and food and luxury goods industries.

A&D can look back on a successful year of business in Austria and in SEE. Positive trends continued in all of the unit’s sectors of activity, and order intake and back-log remained robust in the automotive sector. The acqui-sition of UGS Corporation considerably expanded A&D’s industrial software portfolio, especially in the “digital factory” field, and the takeover of ETM in Eisenstadt, a specialist for control components for infrastructure solutions, took the unit into a new business segment. Thanks to these strategic investments, Siemens can now offer its customers even more products and services and greater added value. A&D is the market leader through-out the economic region and is working to cement and expand this position.

One particular highlight of the 2007 fiscal year was the supply of analysis equipment for the OMV refinery in Schwechat as part of the IPPC project. Business with process instrumentation and process analysis developed very well overall. Thanks in part to the introduction of

new products for process analysis, the unit was able to achieve growth rates well above those seen on the market as a whole. No other company in the industry is able to offer process and manufacturing sensors from a single source. After the integration of the wireless mod-ule technologies from the former COM division, A&D is in an excellent position to become a leader in the promis-ing field of wireless sensor systems and to offer its cus-tomers new and interesting ways to optimize their business processes.

Business with Simatic automation systems also grew nicely over the past year, and market share increased again especially for Profinet and safety solutions. Simatic PCS 7 process control technology was used in several systems. A&D won orders for four biofuel production plants.

The power management system B.Data captured more market share and has become the de facto group solution for BMW. After the system was installed at the automaker’s plants in Regensburg, Leipzig, Munich, and Steyr over the past years, it was implemented at the BMW motorcycle plant in Berlin, the BMW Formula 1 plant in Munich, and the FIZ development center in 2007. The completion of the project at Audi in Ingolstadt was a major step in securing the unit’s relationship with the Volkswagen Group, and the successful conclusion of the Simatic IT project at Banner Batteries laid the cornerstone for the future marketing of MES solutions in Austria.

A&D sells a broad range of automation components, drive components, low-voltage systems, installation components, and process instrumentation. The unit’s excellent market position can be attributed in part to its integrated automation approach and to its low-voltage products for building automation systems. As a system supplier, A&D offers its customers extensive know-how in a broad range of industries, especially the automotive, chemicals, pharmaceu-ticals, machine building, petrochemicals, and food and luxury goods sectors.

Automation and Drives (A&D)

Division Management

Wolfgang MorrenthRudolf Preslicka

35Automation and ControlAutomation and Drives

The Automotive unit provided automation solutions for body pressing and painting around the world over the past year.

Business in the period saw numerous conversion and modernization projects aimed at increasing manufactur-ing line flexibility, especially using robotics solutions to boost throughput rates. PCS 7 automation solutions continued to sweep the chemicals, pharmaceuticals, and food and luxury goods industries and are driving the adoption of integrated solutions for batch production.

Key automation projects included PCS 7 batch for DSM and Baxter, work for DaimlerChrysler, BMW, VW, AUDI, Skoda, and GM in the automotive sector, and modernization projects completed by SC Dairy for dairies around the world.

A&D delivered positive clutches to Siemens VAI for Arvedi Italy, industrial gearboxes to Siemens VAI for the Thyssen CSA steel mill in Brazil and the NTMK steel mill in Russia, and mill drives to Cemtec MD+LD.

The integration of Flender into Siemens AG Austria has been largely completed, enabling A&D to offer complete drive solutions from the power supply to the machine.

The new IEC motor family enables industrial enter-prises to consume less power and reduce their negative impact on the environment. A&D was able to win consid-erable market share with new products in the Sinamics frequency converter family and the Simotion automation family.

The use of innovative pick-and-place machines al-lows high-tech electronics manufacturers to increase their productivity and helps to secure their production sites in Europe. Siemens VDO significantly increased the capacity of its plants in the Czech Republic and Romania with SIPLACE X pick-and-place machines, and Nokia remains a satisfied user of high-performance Siemens machines for the assembly of its circuit boards.

A&D has established an excellent position with major OEMs in the machine and plant building sector with its Safety Integrated range. The boom on the machine building market brought strong growth in the sale of machine tool controllers. The unit also scored successes with complete equipment projects in collaboration with SIMEA.

A special web platform was established to assist with advance acquisition for special-purpose buildings and complete industrial solutions. In addition to the complete product portfolio, the portal offers design and planning aids and technical project planning support.

Different levels of growth were seen in the renova-tion and new construction segments of the market for electrical installation products. Sales of these products were boosted especially through cross-selling initiatives and an increased focus on service for architects, plan-ners, and end customers.www.siemens.at/ad

Painting system at BMW in Regensburg. Bioethanol production in Lower Austria. Power-saving industrial drives: improved range of offerings and more benefits for A&D’s customers.

36 Automation and ControlIndustrial Solutions and Services

Industrial Solutions and Services (I&S)

Division Management

Kurt HofstädterRobert Monsberger

Josef Kinast

Industrial Solutions and Services uses electrotechnical products from other Siemens units to increase its cus-tomers’ productivity and competitive strength. The unit’s sectors of activity include metallurgy, water treatment, pulp and paper, cement, oil and gas, snowmaking and cable car systems, strip mining, airport logistics, postal automation, road traffic infrastructure, and industrial services.

To increase their efficiency, companies need inte-grated solutions that control their production and service provision processes faster, more flexibly, and more effi-ciently and that sustainably increase the output of their systems. In addition to the necessary process and tech-nology expertise, a provider’s IT competence is a decisive success factor in offering such solutions. To meet these needs, I&S uses innovative IT solutions to integrate isolated hardware and software islands and individually optimized automation systems. Previously separate production steps are linked, and the management level is linked with the process level.

All signs are pointing to growth again at I&S, in part thanks to the establishment of centers of excel-lence. Key factors in the successful growth over the past year were the acquisition and integration of US Filter, Airport Logistics, Postal Automation, and the industrial units of VA TECH ELIN EBG. But these are not the only drivers behind I&S’s growth. I&S Austria doubled its sales over the past five years while only increasing

its staff by 60 percent – an impressive productivity boost.

Two new portfolio elements were established as global centers of excellence that are managed from Austria: Reject Power and Refinery Logistics. Reject Power is an innovative incineration technology for the generation of power from waste materials. Refinery Logistics covers aspects such as filling and unloading stations for tanker trucks and tank cars. In addition to the CEE economic region, the center of excellence also serves Russia and its neighboring European countries.

The prospects in the I&S business areas postal auto-mation and airport logistics are also very encouraging. I&S Austria serves numerous countries with its airport logistics portfolio and supplies runway lighting systems, docking systems, and baggage handling systems. An important market for these products is Siemens’ eco-nomic region, where a total of 90 airports are in opera-tion. Sibiu airport in Romania is to become a model facility and was equipped with a baggage handling system from I&S during the past fiscal year.

The economic region will be the principal focus of I&S Austria’s business activities in the coming years. I&S service technicians played a key role in the general inspection of the Romanian refinery Arpechim during the past year. Additional projects in SEE included the mine conveyor system for Velenje in Slovenia, electrotechnical equipment for a sewage treatment plant at the Mlekarna

Industrial Solutions and Services (I&S) is the system and solution integrator for industrial plants and infrastructure and is a worldwide provider of services for industrial systems. By leveraging synergies between its three core business areas – industry-specific solutions, information technology competence, and technical services – I&S is optimally positioned to service its customers’ systems across their entire lifecycle from planning and construction through to operation.

37Automation and ControlIndustrial Solutions and Services

I&S manages Siemens’ worldwide refinery logistics business (tank car filling/unloading system shown). Water treatment is gaining importance. The unit runs a center of excellence for Reject Power, an innovative technology for generating power from waste (the Mayr-Melnhof System in Hirschwang is pictured at the lower right).

Celeia d.o.o. dairy in Slovenia, and a dedusting system for flue gas cleaning at U. S. Steel s.r.o., Slovakia.

Aurel Vlaicu International Airport in Bucharest-Bǎneasa, Romania, placed an order for the installation of a new airfield lighting system. The Serbian power com-pany JKP “Beogradske elektrane” placed a sub-order for the renovation of Belgrade’s district heating network.

I&S is responsible for the electrical systems in the new combined-cycle power plant at Sappi Austria Produktions-GmbH & Co KG, Gratkorn.

The mechanical and electrical components of tan-dem cold-rolling plant number one were modernized for Rasselstein GmbH in Andernach, as was the electrical drive system on paper machine eight (PM8) at Mondi Packaging in Frantschach. OMV Gas GmbH in Vienna commissioned I&S with the delivery of the electrotechni-cal systems for the expansion of the West Austria gas pipeline and with the engineering and construction of a control system for the Schönkirchen natural gas storage facility. OMV Refining & Marketing GmbH, Vienna, placed an order for the expansion of the low-voltage distribution system for the SNOx plant at Schwechat refinery.

A project at Mittal Steel Poland in Krakow covered the power supply and the drive systems for the new high-performance hot-rolling plant. In the Eurotunnel, I&S is responsible for the design and installation of the har-monic oscillation filters in the rail power system, and for

the electrical equipment at the new Zabol Cement Com-pany cement factory in the Belochistan area of Iran.

Business with ascent systems is concentrated in Innsbruck. The former ELIN Seilbahntechnik GmbH was integrated into I&S Region West. The new team is the market and technology leader and offers tourism compa-nies cable car systems, snowmakers, power supply systems, and other infrastructure equipment. I&S also provides electrotechnical equipment for Cable Liners. After the completion of the projects at the airports in Birmingham and Toronto, systems are now being planned and built in Mexico, Venice, and Las Vegas.

Siemens Industrial Services GmbH, I&S’s fitting sub-sidiary, has a pool of highly qualified installation techni-cians in Linz that can be assigned flexibly.

Siemens AG’s worldwide tolling business is operated by ITS T Electronic Tolling in Vienna, part of I&S ITS. Over the past fiscal year, ITS T won tolling projects in Switzer-land (delivery of the software for on-board units) and in Singapore and trial projects in the UK. In 2008, business will focus on tolling project bids in Slovakia and Hungary.www.siemens.at/is

Automation and ControlSiemens VAI Metals Technologies

Siemens VAI Metals Technologies (Siemens VAI)

ManagementRichard Pfeiffer

Karl SchwahaSanjeev Sinha

Werner Auer

Siemens VAI Metals Technologies is currently the world’s leading provider of solutions and services for the iron and steel industry. Thanks to the integration of VOEST-ALPINE Industrieanlagenbau (VAI), the unit is now able to cover the entire production process from raw materials all the way to the finished product with its own resources.

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After Siemens acquired VOEST-ALPINE Industrieanlagen-bau (VAI), the relevant units of both companies were combined into the new segments Iron and Steelmaking and Rolling and Processing, and responsibility assumed for all activities in the strip mining industry. The new unit Metals and Mining Services is responsible for all of the unit’s services and modernization projects worldwide.

The global demand for steel will continue to climb in the years to come. While new steel works are being built to cover the needs in China, India, Russia, and Brazil, steel manufacturers in North America and Europe are increasing the production potential of their systems by installing state-of-the-art technologies and by automat-ing and optimizing their production processes. Under these conditions, Siemens VAI Metals Technologies is expecting growing demand in the coming years for lifecycle partnerships between steel manufacturers and system suppliers targeted at making better use of exist-ing capacities while at the same time optimizing capital investments in the steel industry.

Since acquiring VAI, Siemens has been actively add-ing mechanical and process-specific solutions to its systems business with automation and electrotechnical solutions. These efforts have enabled Siemens to tap a market with a potential of €45 billion. In fiscal year 2007, Siemens VAI further expanded its worldwide market leadership. Of the new orders received, 30 per-cent each came from the regions Asia/Pacific and Europe,

and 20 percent each from North/South America and the Middle East/Russia.

Siemens VAI helps metal works and strip miners to consume fewer resources and have less of a detrimental impact on the environment by introducing new process technologies and by optimizing individual production steps. This development is being driven in large part by rising raw materials and energy costs and by national environmental laws. Siemens VAI has perfected the Finex method over many years of close collaboration with the Korean steelmaker Posco. Now, molten pig iron can be made from iron-ore fines in a single step. This method is especially attractive in terms of resource consumption because the sintering and coking steps needed in the traditional method are no longer required.

Gaseous emissions can also usually be reduced by an average of 90 percent. Dry dedusting methods are in-creasingly taking the place of wet methods for offgas cleaning. One example is the Meros process, which was developed for the cleaning of offgasses from the sinter-ing process. Siemens VAI is currently installing the first industrial system at Voestalpine AG in Linz.

The total pool of installed systems around the world spans the entire value creation chain and offers excellent potential for future business. www.siemens-vai.com

Linz-Donawitz: Siemens VAI helps its customers implement new process technologies and optimize individual process steps.

Automation and ControlBuilding Technologies

Building Technologies (SBT)

Division ManagementWolfgang KöpplChristian Knechtel

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Along with maximum safety and security for the build-ing’s occupants, the environment, and property, modern building automation systems must also ensure efficient energy use, comfort, and user friendliness. Building Technologies’ portfolio comprises building automation, fire protection and suppression systems, video, access control, and intrusion detection systems, media equip-ment, and energy management as well as extensive service offerings and products for the control of heating, ventilation, and air conditioning systems and for security and safety systems.

The use of new technologies such as wireless com-munication and compliance with future-proof interna-tional standards combined with corresponding develop-ment and production processes ensure high quality and protect the customer’s investment over the entire system or product lifecycle. This and the capabilities of the unit’s staff enabled SBT to grow its market share over the course of the fiscal year.

Building occupants want to feel safer and want a comfortable environment. Building owners want to keep their energy and management costs to a minimum, and investors demand attractive returns. Intelligent, power-ful, individual building infrastructure solutions make it possible to meet all three of these objectives at the same time. SBT’s work is shaped in large part by the increasing need for personal safety and security, the need to use our energy resources wisely, and the important topic of

environmental protection. Energy savings contracting significantly reduces carbon dioxide emissions and operating and energy costs by optimizing and modern-izing a building’s technical systems. The necessary in-vestments are financed with the guaranteed savings. Energy savings contracting projects are developed indi-vidually for each building or facility.

In addition to protecting people and physical assets, company security is expanding more and more to cover business processes and data. To this end, electronic systems and complete solutions are gaining popularity. The integration of security solutions into higher-level processes, for example into existing IT infrastructures or into the building management system, is also becoming more important. SBT offers outstanding solutions and made-to-measure concepts for these applications.

Steadily growing traffic volumes and increasing safety requirements in developed economic regions place high demands on tunnels and airports. Appropriate security and safety systems such as integrated solutions for fire protection, access control, and video surveillance from SBT minimize risk to persons and property and ensure permanent availability. Experiences gained from collaboration with research institutes and system opera-tors are also of great value. As part of the Federal Minis-try of Transport, Innovation and Technology’s KIRAS security research program, Joanneum Research, Graz Airport, and Building Technologies will be working jointly

Building Technologies combines solu-tions for safety, security, and building automation both as a service provider and system integrator and as a manufac-turer of corresponding high-quality products. A team of competent special-ists with extensive technical know-how and experience makes Building Technol-ogies the leading provider of forward-looking technical building systems.

Praterstern rail station in Vienna is being fitted with building automation systems from Building Technologies as part of its renovation.

on the research project Multimodal Security System for the Monitoring of Airport Areas. SBT will be contributing its extensive video-analysis expertise (algorithm develop-ment).

Thanks to SBT’s broad portfolio of security, safety, and building automation products and its open system platform, the trend towards Total Building Solutions, meaning the integration and management of all techni-cal building systems, is creating a perfect business envi-ronment for the unit. Customer benefits include a high degree of functional performance and the easy opera-tion of all key building management systems, reduced lifecycle costs, and enormous flexibility. Service is one of SBT’s key focuses. Continual, reliable system service and maintenance ensures a long operating life for each of the system components, and as a result optimal value protection and continually optimized operating costs.

SBT offers solution packages tailored to vertical markets to meet the specific needs of key industries. Examples include the comprehensive guest and room management system HotelSolution, a database applica-tion oriented towards the pharmaceutical industry’s strict validation requirements, safety and automation solutions for the healthcare sector, and tailored fire suppression systems for industrial and data processing facilities.

“Living with heart and brain” is the advertising slogan for the new home automation system Synco Living, which offers greater comfort, the ability to adapt to

individual wishes and requirements, greater energy efficiency, and enhanced safety and security. The combi-nation of the new modular security and safety system Sintony® 60 (for intrusion protection and fire alarms) with automated alerts via telephone or text message makes the system ideal for any home. The products won the red dot design award 2006 for their attractive design.

SBT has its own operating units in all SEE countries, enabling it to provide optimal service and support to local customers and to customers and partners investing in the region from Austria. Projects won last year include fire protection and suppression systems for Petrom S.A., Romania, HotelSolution for Hotel Splendid in Montene-gro, and building automation for Zagreb Tower in Croatia and for Hotel Emerald in Bulgaria.

In Austria, work included the installation of a com-plete video surveillance system for the Austrian post office network including monitoring by the SBT security center, a safety system for the Pack tunnel chain, and the modernization of the fire detection, fire incident man-agement, and building management system at Vienna General Hospital. www.siemens.at/sbt

Automation and ControlBuilding Technologies

Biomass power plant in Vienna’s Simmering district: The reliable fire protection systems were delivered by Building Technologies.

State-of-the-art safety systems meet the most stringent requirements during the construction of the Pack tunnels.

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Automation and ControlSiemens Elin Buildings and Infrastructure

Siemens Elin Buildings and Infrastructure (B&I)

ManagementHerbert WegleitnerWilly StelzerHarald Rest

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After the conclusion of the restructuring program, the building equipment and infrastructure activities of the former ELIN EBG were transferred to a separate legal entity under the name of Siemens Elin Buildings and Infrastructure (B&I) on October 1, 2006.

B&I is still active with a complete technical building equipment portfolio covering all electrotechnical systems (high and low voltage) and all mechanical systems such as heating, ventilation, air conditioning, sanitary, sprin-klers, and more. Additional key areas are power line construction, especially for municipal authorities and power utilities, and public lighting.

B&I’s specialists have proven solution competence from numerous successful projects in a wide range of sectors. In addition to multifunctional and office build-ings, hotels, spas, and shopping centers, the unit also has extensive experience with hospitals, therapy and healthcare centers, stadiums, and training and cultural facilities. B&I is also a capable partner in the construction of industrial and manufacturing facilities, tunnels and municipal infrastructure.

Building automation is becoming more and more important. B&I can offer suitable process control and building equipment concepts for nearly every application based on innovative infrastructure management systems that monitor and influence a building’s lifecycle costs. In every case, B&I uses its extensive system experience in relevant industries to select the products and systems

that best match the customer’s needs. B&I installs mod-ern communication, building management, and safety and security systems in collaboration with high-tech product and system partners.

As a lifecycle partner, B&I optimizes the balance between costs for construction and expert services on the one hand and for building equipment services on the other. Customers are offered design-to-budget proc-esses, functional planning and lifecycle cost analyses, maintenance and service work, as well as facility man-agement services together with group partner SGS.

After “integration year” 2006, business in fiscal year 2007 focused on restoring market and customer proxim-ity even while activities were influenced considerably by the turnaround and process integration into the Siemens information technology topography. Order intake showed that the unit was successful in achieving full market and customer proximity, and that it has been able to profit noticeably from the positive economic trends. Business growth was very balanced on the core markets Austria, Russia, and SEE. This underscores the success of the termination of activities in Hungary, Poland, and Hamburg to streamline the regional portfolio and the shift in focus to the unit’s core markets in fiscal year 2007.

Key orders during the year were landed for high and low voltage systems and ventilation and air conditioning systems at the new Klagenfurt hospital, which will be completed in 2010, and for technical equipment for

B&I covers the full scope of technical building equipment including electro-technical, heating, ventilation, sanitary, and sprinkler systems and also offers services for municipal infrastructure. As a technical general contractor with extensive experience in all key industries and as a specialist for individual techni-cal systems, B&I offers modular solutions for optimal customer benefits.

In Vienna, B&I won the order for the electrotechnical equipment for the HOCH ZWEI and PLUS ZWEI projects at the new VIERTEL ZWEI complex. The buildings will be occupied by OMV AG.

Automation and ControlSiemens Elin Buildings and Infrastructure

two Rising Star Media cinema centers in Moscow and St. Petersburg.

A contract was also signed for the delivery of the technical building equipment for the new Zagreb shop-ping center, which has an area of roughly 210,000 square meters. In Vienna, B&I won the order for the electrotechnical equipment for the HOCH ZWEI and PLUS ZWEI projects in the new VIERTEL ZWEI complex. The scope of delivery includes the complete high and low voltage systems and the complete safety and security systems. The buildings will have rental space of roughly 55,000 square meters in total, including 38,500 square meters of office space.

B&I was also able to capitalize on its expertise for spas and wellness facilities and won an order from Berg-bahnen Bad Kleinkirchheim for the renovation of the Römertherme spas in Bad Kleinkirchheim. This was the first theme-based spa center in Austria and is now being completely renovated and redesigned after twenty years of operation. B&I also scored nicely in the tunnel con-struction segment together with Siemens Bacon and supplied ASFINAG with the medium voltage system for the Katschberg tunnel. Vienna’s hospital operator Krankenanstaltenverbund Wien placed an order for the replacement of the electrotechnical infrastructure at Kaiser Franz Josef Spital.

B&I’s objective is to maintain its strong position as the leading player on the Austrian electrotechnical mar-

ket. The necessary growth for this will be achieved above all in the markets Russia and Ukraine and in South East-ern Europe. The Siemens Group added these markets to B&I’s portfolio and is now actively pursuing market share here. Business outside of Austria is growing in impor-tance for the unit and already accounts for roughly 25 percent of its sales volume. To continue this positive trend, B&I is striving to continually improve the quality and scope of its resource base so that it can achieve profitable growth while protecting adequately against the associated risks.www.siemens.at/bi

Technical systems were supplied for two Rising Star Media cinema centers in Moscow and St. Petersburg.

The technical building equipment for the newly built 210,000 square meter Zagreb shopping center is from B&I.

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Automation and ControlSiemens Gebäudemanagement & -Services

Siemens Bacon

Siemens Bacon

Siemens Gebäudemanagement & Services (SGS)

SGSManagementGerhard Schreidl Michael RotterJosef Gaupmann

Siemens BaconManagementBernhard BergerHerbert KonradGerhard Schreidl

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SGS offers holistic facility management covering the construction, operation, and maintenance of buildings and complete facilities.

SGS’s core competency is technical, commercial, and infrastructural facility management. The Project Business unit at SGS specializes in planning and implementation management for all construction and technical building systems work. The consistent application of success-critical knowledge gained from the operation of existing buildings during the planning process for new projects ensures maximum customer benefits and sustainably improves the performance of the resulting facility.

A new lifecycle project was implemented successfully with St. Pölten University of Applied Sciences. The Project Business unit won a major planning and building contract for the new Pensionsversicherungsanstalt building on Handelskai. Public Lighting focuses on contracting models, especially in SEE. The unit cemented its market leadership with new holistic facility management con-tracts, for example for the BC 20 business center on Höchstädtplatz in Vienna and for phases two and three of Office Campus Gasometer, and with an extension contract with Austrian Airlines. SGS has also expanded its healthcare activities with a facility management agreement for Barmherzige Brüder hospital in Graz.www.siemens.at/sgs

Siemens Bacon focuses on the provision of complete building infrastructure solutions and on technical tunnel and airport systems.

In addition to its traditional focus on heating, ventilation, sanitary, air conditioning, and electrical systems, the unit is also expanding its business with complete technical building infrastructure systems. In airport and tunnel equipment, Siemens Bacon is active as a system integra-tor and general technical contractor. SGS completed a series of demanding projects for its customers during the year, included the psychosomatic center in Bad Aussee, the transformer station expansion at Vienna International Airport, the St. Pölten University of Applied Sciences, Barmherzige Brüder hospital in Salzburg, system expan-sions at Infineon in Villach, and Zagreb Tower in Croatia. Work currently in progress includes an office building for Pensionsversicherungsanstalt in Vienna, the general renovation of Theater in der Josefstadt, the Skylink at Vienna International Airport, the medium voltage switch-ing system for the Katschberg-Tauern tunnel, smoke extraction systems for Wien Mitte rail tunnel, and hospital projects in Tuzla, Bosnia, and Gushiego, Ghana. Siemens Bacon has maintained a very good position in Austria in spite of the difficult conditions and will continue offering complete technical building infrastructure packages.www.siemensbacon.com

SGS implements contracting models for public lighting throughout the SEE region, for example in Sibiu.

Siemens Bacon is playing an increasing role as a system integrator for technical airport systems. The transformer station at Vienna International Airport was recently expanded.

PowerPower Transmission and Distribution; Power Generation

Power Transmission and Distribution; Power Generation (PTD/PG)

Siemens Power offers a comprehensive portfolio of energy efficiency products and services ranging from generation and transmission to distribution to the end user.

Timelkam power plant, which is being built by Siemens PG, boasts nearly 60 percent efficiency – the highest degree allowed by current technology.

Bottlenecks drive the supply and procurement market. Energy efficiency is the key, and Siemens Power offers a comprehensive range of relevant services. The increasing demand for energy especially in the countries of the economic region has caused a satisfying increase in order intake for Siemens Power.

In the power generation segment, work is focusing on the renovation and expansion of existing power plants. However, the construction of a series of new power plants is also making a nice contribution to the unit’s business growth. For these projects, Siemens PTD/PG works together with Siemens Power Generation Anlagentechnik GmbH and concentrates on the use of highly efficient combined-cycle (gas and steam) tur-bines, which generate electricity with significantly less negative environmental impact than many other tech-nologies.

Business in the power distribution segment is domi-nated by ongoing power grid expansions. Here, Siemens Power has secured an excellent market position thanks to the wide range of uses for its compact gas-isolated switchgears. To optimally meet the demands that will be placed on power grids in the future, in particular those stemming from a growing number of decentralized power generators and the need for flexible power grid management, Siemens Power is focusing in Austria on the development of the innovative Automated Metering and Information System (AMIS). Approximately 1,000

units are currently being used by Energie AG Oberöster-reich in a system and integration test.

The rapid growth of the power market is making it necessary to offer a broader and higher-quality range of services. Here as well, Siemens has secured an excellent position on the market by founding the PTD Service Center SEE and by expanding its range of services for turbines and generators.

In Timelkam, Siemens PG is building a power plant with the highest degree of efficiency possible with current technology (approximately 60 percent). The gas-fired plant will generate clean energy (electricity and district heat) and make an important contribution to protecting the environment through its reduced carbon dioxide emissions. Energie AG Oberösterreich’s new 400-megawatt combined-cycle power plant will supply roughly 700,000 households with electricity starting at the end of 2008.

The regional headquarters for turbine service in Vienna won a service contract from Mittal Steel in Zenica, Bosnia and Herzegovina, for a third-party turbine. In Slovakia, three turbogenerator sets with an output of 13 mega-watts were overhauled and modernized for Mondi Pack-aging Ružomberok a.s. Siemens is also delivering a 30-megawatt industrial gas turbine to OMV in Schwechat.

At the Dürnrohr steam power plant, PG is replacing the control systems in blocks one and two with the new SPPA-T3000 control system. At Wienstrom’s Leopoldau

Division Management

Gunter KappacherJohannes Hofmann

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PowerPower Transmission and Distribution; Power Generation

Siemens Transformers Austria

Siemens Transformers Austria (STA)

ManagementReinhold ZinglErich BuchgeherJürgen Gressel

facility, the control systems and part of the electrotechni-cal systems were replaced in the combined-cycle plant. In Slovenia, PG won an order for the unit five block control system at Šoštanj power plant, and for the elec-trical systems in block A4 at KEK power plant in Kosovo.

PTD is installing a new grid control system for the Russian 220- and 500-kilovolt network – one of the largest power grids in the world. In Georgia, Siemens is automating the entire high-voltage network, for which 500 kilometers of fiber optic cable must be laid in the guard wires of the high voltage lines.

PTD is delivering protection and station control equipment for KOSTT’s Kosovo B and Priština 4 trans-former substations. A 420-kilovolt gas-isolated switch-gear connector is being built for Verbund’s Limberg II pump storage power plant. In Serbia, Siemens brought EMS’s Jagodina and Sombor 3 transformer substations online. The first two phases (220/420 kilovolts) of the Transelectrica switchgear construction project in Iernut, Romania, were connected to the grid, and the Fundeni 220/110-kilovolt switchgear officially brought online in September. For Wienstrom, PTD is building the Schwechat transformer substation as a turnkey project. Siemens is overhauling the complete medium voltage power supply system at the joint voestalpine Bahn-systeme and Sandvik site in Zeltweg.www.siemens.com/pg www.siemens.com/ptd

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In the face of changing market demands, Siemens Trans-formers Austria GmbH & Co KG focuses on compliance with the highest technical standards and the develop-ment of innovative solutions, especially in terms of environmental compatibility. Focuses in research and development include noise and emissions reductions and the use of environmentally friendly materials. Fiscal year 2007 saw high demand on the international markets, and exports accounted for over 80 percent of all busi-ness.

Thanks to the quality and cost-efficiency of its prod-ucts, VA TECH ELIN Transformatoren GmbH & Co in Weiz is one of the world’s leading providers of transformer systems and a trusted partner for many power utilities. Whisper transformers for major population centers such as New York City and low-emission distribution trans-formers for large buildings and sensitive areas are key products in the unit’s portfolio.

VA TECH EBG Transformatoren GmbH & Co in Linz has been manufacturing transformers and switchgears since 1920. Today, the company enjoys great success with the sale, design, and construction of medium-capacity output transformers and special transformers. Rationalization and optimization investments will enable the company to maintain and increase its competitive-ness into the future.www.siemens.at/transformers-austria

Siemens brought Jagodina and Sombor (pictured) transformer substations online in Serbia.

Low-noise-transmission transformer at Energie AG Oberösterreich in Lambach for transmission and cross line control.

MedicalMedical Solutions

Medical Solutions (MED)

Division Management

Werner BeierJosef Gaupmann

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The combination of three successful companies and their respective strengths in imaging diagnostics, laboratory diagnostics, and clinical information technology under a single roof puts Medical Solutions (MED) in the unique position to offer its customers even more effective diag-nostic, therapy, therapy monitoring, and disease man-agement solutions. Considerable investments had to be made in the acquisition of world-leading companies to combine expertise from the previously separated market segments information technology, laboratory medicine, and medical technology. The fusion of these companies’ strengths created the first integrated diagnostics solu-tions provider in the world. The resulting portfolio comprises powerful systems and leading information technologies, as well as a comprehensive range of parameters and state-of-the-art molecular medicine. Siemens is paving the way to individual patient care.

Siemens Medical Solutions set new quality standards in molecular imaging with the world’s first high-defini-tion positron emission tomography scanner (PET-CT). The images from this high-resolution scanner provide considerably more detail and clarity across the entire field of view. Even small lesions can be accurately local-ized, and early and more targeted treatment applied.

The individual markets in the SEE region developed very differently in fiscal year 2007, both regarding de-mands and investment volume. The Austrian medical technology market is saturated in terms of volume but

showed a clear trend towards higher quality equipment, creating fertile conditions for MED and its portfolio.

In the information technology segment, the “elec-tronic patient file” will be a major driver of business throughout the region in the years to come alongside the unit’s clinical software systems. With its holistic process expertise, Siemens is in an optimal position to capitalize on this market trend.

In Romania, the staggering lack of infrastructure has triggered a veritable boom in complete hospital projects and rapidly growing demand for medical equipment. As a result, the country has the highest growth rate in Eastern Europe, while there is little evidence of a similar upswing in neighboring Bulgaria.

Healthcare providers in Serbia and Croatia continued to transition to higher-quality technologies such as PET-CT and magnetic resonance tomography scanners as the standard of healthcare in these countries improved. In Slovakia, business activity slowed after a brisk 2006 because of political decisions, while new investments in Bosnia and Herzegovina brought impressive sales increases.

MED’s Tyrolean subsidiary ITH was merged with icoserve and saw a considerable increase in business volume thanks to the resulting expansion of its portfolio and capabilities. Now, ITH is to become a center of competence for information technology in the health-care sector. Modern information technologies will play a

Medical Solutions is the leading provider of products, systems, and solutions for the healthcare industry. As a specialist for imaging diagnostics, laboratory diagnostics, and clinical information technology, MED supports its customers in the areas of diagnostics, therapy, therapy monitoring, and disease management.

Siemens Medical Solutions is setting new quality standards for molecular imaging with the introduction of the high-resolution PET-CT scanner.

MedicalMedical Solutions

Siemens Health Management

Siemens Health Management (SHM)

steadily growing role in the provision of medical care in the future because there is no better way to achieve more efficient processes. marc in Graz is an impressive example of this. The center of competence for the archi-val of medical information has the world’s largest civil image data archive with extensive technological, logisti-cal, and legal knowledge.

marc ensures that data from state-of-the-art exami-nation and diagnosis systems is made available to clinical personnel quickly and in excellent quality so that deci-sions can be made on the most suitable therapy and care measures. The company further extended its dominant position with hospitals and registered physicians over the past fiscal year.www.siemens.com/medical www.siemens.com/diagnostics

ManagementWolfgang ModritzJosef Gaupmann

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As a broad-based medical specialist, SHM has in-depth knowledge of health-care processes.

Siemens Health Management GmbH (SHM) was founded as a broad-based healthcare industry specialist in 2004 and has a staff with many years of experience in medical and clinical operations (physicians), care provision (nurses), health management, information technology, and construction. SHM applies its extensive knowledge of healthcare processes to create additional value and benefits for its customers. The unit’s primary objective is to facilitate profitable growth for Siemens AG Austria in the healthcare sector through professional project devel-opment.

Impressive project business volume was generated for Siemens in Austria, SEE, and abroad in fiscal year 2007. SHM also played a larger role as a service provider and consultant in the concrete implementation of projects.www.siemens.at/shm

Siemens is paving the way to individual patient care by integrating information technology, laboratory systems, and medical technology.

Patient data can be accessed at any time and place in the hospital using a tablet PC.

TransportationTransportation Systems

Transportation Systems (TS)

Division Management

Gottfried SchusterAndreas Pálffy

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In accordance with its responsibility to ensure a livable future, a key focus for Transportation Systems (TS) is energy efficiency and low resource consumption. Busi-ness grew positively overall in fiscal year 2007. As a full-range provider, TS again filled orders for vehicles, signal and control equipment, automation systems, power supply systems, and integrated services.

The unit expanded its position on the Austrian market again after Austrian Railways exercised an option for additional Railjets, the new ICE-standard comfort coach. Siemens received an order for an additional forty-four Railjet trains as part of Austrian Railways’ main-line capacity expansion, the largest single order received by Siemens AG in ten years.

The first trains with additional comfort-oriented features will enter service in 2008. Austrian Railways passengers will travel in even greater comfort thanks to TS’s innovative Desiro multi-unit trains and the passenger information systems in the double-decker cars. Multi-system locomotives were also handed over to Austrian Railways and Slovenian Railways (SZ). The European AC/DC-capable high-speed locomotives boast a particularly high availability of over 98 percent and enable comfort-able, uninterrupted cross-border travel.

The new contracts include integrated services com-ponents for accident repairs and replacement parts for Austrian Railways.

The first newly designed second-generation ULF

trams were delivered to the Vienna Transport Authority. A total of 150 vehicles with the lowest entry height in the world and maximum passenger comfort, including air conditioned passenger areas, will be delivered in the coming years. Including the first generation of these trams, a total of 300 ULF trains will be in use throughout Vienna by 2014. The infrastructure segment successfully demonstrated its solution competence as well during the year. A project is in place to consolidate the control of the entire core Austrian Railways network at five operating centers with a uniform operating interface. The first of these centers is being set up in Innsbruck. The new main electronic signal box for the Baden commuter rail line was also brought online.

The need for infrastructure modernization in the new EU member states has boosted business in the SEE region. TS Rolling Stock received orders for additional multi-system locomotives that will be used for cross-border transport between Austria, Slovenia, and other neighboring countries.

To meet the increasing safety requirements, individu-al rail lines are already being equipped with the European Train Control System (ETCS). The Rail Automation unit in Slovakia landed an order for an ETCS Level 1 train control system for the line between Trnava and Nové Mesto nad Váhom.

The first and largest electronic signal box was brought online in Leopoldov between Trnava und Nove

Transportation Systems is one of the leading vendors in the rail industry. TS supplies economical products and solutions for innovative rail-bound mobility systems for mass, regional, and main-line transportation throughout the SEE region. The infrastructure seg-ment also bears sales responsibility for Morocco, Tunisia, Algeria, and the Czech Republic.

TS expanded its position on the Austrian market again after Austrian Railways ordered additional Railjets, the new ICE-standard comfort coach.

Mesto as part of the expansion of Corridor V. Also part of the further expansion of the EU Corridor V, a contract was won in Slovenia for the modernization of the line between Pragersko and Ormož covering seven electronic signal boxes, a remote control center, and twenty-three electronic rail crossings. Operational approval was grant-ed for the first SIMIS W signal box in the region in Dimitrovgrad, Serbia. A key rail power systems order was placed by Romanian Railways covering the modernization of the line between Fundulea and Feteşti and three line subsystems. Orders were also placed for signaling equip-ment for Bucharest’s mass transport system.

TS’s success was not limited to SEE. Infrastructure business in Algeria and Tunisia was positive. The first milestone was reached in the contract with Algerian Railways for the delivery and installation of safety and telecommunications systems. The infrastructure segment also won an order from the Tunisian rail operator SNCFT for a timetable management system that is being realized together with Siemens IT Solutions and Services. www.siemens.at/transportation

TransportationTransportation Systems

ELIN EBG Traction

ELIN EBG Traction (ETR)

ManagementGünther Prokisch Peter RauterGerhard Skorepa

ELIN EBG Traction is a global player on the market for electrical components for rail vehicles.

Siemens AG’s Transportation and Automation & Drives units concluded the establishment of a new unit Siemens ELIN EBG Traction on October 1, 2007. ELIN EBG Traction boasts extensive system competence and outstanding engineering and product know-how. Because it has also been designated a worldwide center of competence for trams and metros (TS vehicles and external customers) and for trains (external customers), the new unit’s portfolio and strategic base have been expanded considerably. The delivery of components for electrical multiple-unit trains, metros, and trams during the fiscal year underscores ELIN EBG Traction’s important position on the Austrian market.

In Europe and North America, large market shares were captured with traction equipment for multiple-unit trains and for light rail vehicles, metros, and trams. Highlights during the year included electrical compo-nents for electric multiple-unit trains for Austrian Rail-ways and MAV (Hungary), light rail vehicles for Phoenix and Seattle in the U.S.A., the Brussels metro, ULF trams in Vienna, and the metro system in Antalya, Turkey. Business also developed well with the ETRIS H3000 power inverter for 3-kilovolt direct-current drive systems with SIBAC modules from A&D. www.elinebgtraction.at

49

Rail Automation is installing a train control system for the line between Trnava and Nové Mesto nad Váhom in Slovakia.

ELIN EBG Traction supplies drive systems and electrical equipment as a worldwide center of competence for trams, metros, and trains (Vélez Málaga, Spain, pictured).

TransportationSiemens Transportation Systems

Siemens Transportation Systems (STS A)

ManagementAndreas

GerstenmayerWilfried UlmGeorg Maier Norbert Graf

50

The Company’s know-how for the entire logistical and process chain from research, development, engineering, manufacture, and final assembly to startup is concen-trated at both Siemens Transportation Systems produc-tion sites. In addition to its metro vehicle expertise, the site in Vienna also continued to grow into a center of competence for trams within the worldwide Siemens group. This important role was underscored by the delivery of forty Combino+ trams for the city of Budapest and the start of series production for a further 150 ULF trams for the city of Vienna.

In the bogie manufacturing segment, the unit’s service activities are expanding rapidly, additional mar-kets are being tapped, and project offices were opened in China and India. An extensive peer group analysis was also completed to benchmark the unit’s costs and con-firmed the competitiveness of all business processes. In the passenger coaches segment, STS landed a manu-facturing order from Austrian Railways for the Railjet, a highly modern passenger coach system capable of speeds up to 250 kilometers per hour. After ordering twenty-three Railjet trains in 2006, an order was placed for another forty-four Railjets in 2007 – the largest order ever won by the passenger coaches segment. The unit also inked its first contract with a private customer, iXotic AG in Switzerland, for the delivery of twenty sleeper cars.

As was the case last year, the unit again achieved

excellent order volume and success and posted a record level of order backlog.

In 2007, STS A acquired a majority stake (54 percent) in Siemens Transportation Systems d.o.o. in Maribor, Slovenia, which specializes in component manufacture and welding technology.

Manufacturing activities in Vienna focused on metros for Vienna, Nuremberg, Oslo, Boston, and Kaohsiung (Taiwan), the further delivery of the new ULF series in Vienna, the low-platform tram for Budapest, and on the Railjet order. Passenger coaches were delivered to the Czech and Greek railway operators, double-decker cars to Austrian Railways, and components for double-decker multiple-unit trains for the Zurich commuter railway. The manufacture of passenger coaches for Israel also began.

In addition to providing bogies for the projects men-tioned above, Graz also manufactured bogies for loco-motives in Lithuania and Vietnam, for diesel multiple-unit trains operated by Austrian Railways, and for trains in Spain, Italy, France, Belgium, and Germany.

Research work for the new Syntegra bogie technol-ogy was wrapped up and test operation started with prototypes. The development of the highly integrated drive system with innovative traction, bogie, and braking technology for series manufacture is proceeding accord-ing to plan. The degree of automation on the bogie frame welding lines was also increased to as much as 75 percent. This high level of robot-assisted manufacture

Three Siemens Transportation Systems units are working on high-tech solutions for modern rail vehicles with a strong international focus: the world center of competence for passenger coaches in Vienna and Graz, the world headquar-ters for bogie engineering, manufacture, and sales in Graz, and the lead factory for regional rail vehicles, metros, and trams in Vienna.

The Oslo metro is ecological: All materials used to manufacture the trains were assessed for their environmental impact.

TransportationSiemens Transportation Systems

Siemens VDO Automotive

Siemens VDO Automotive (SV)

ManagementJörg SandmannAna Campón Alonso

allows top levels of quality and precision in international comparison. The strategic partnership with Graz Univer-sity of Technology was intensified. Among other things, STS A was active in the Virtual Vehicle center of compe-tence, which conducts fundamental research into opti-mizing engineering processes and the continuation of the current activities in the federal government’s new K2 research program.

The Graz plant won the city’s ÖKOPROFIT® award and also the Environmental Award from the worldwide Siemens group for extraordinary performance in the area of environmental protection combined with business success. The project for cost savings through the use of water-based paints on bogie frames was given special praise. The development and manufacture of environ-mentally friendly metro trains for Oslo was nominated for the EEP Award (European Environmental Press). www.siemens.at/transportation

SV specializes in motor and actuator controllers, electronics, and system engineering for automotive applications.

Siemens VDO Automotive GmbH offers technological competence and experience in the area of motor and actuator controllers for a wide range of applications such as power windows and sunroofs. Additional areas of activity include electronics for auxiliary heaters and agricultural vehicles. The unit also boasts broad system engineering expertise.

The product portfolio was expanded considerably over the past fiscal year: In addition to power window and sunroof electronics, SV now also manufactures actuator electronics for heating, ventilation, and air conditioning (HVAC) and engine cooling systems. The unit also contin-ued its core competency restructuring and strategic alignment program. Ongoing activities in the innovation management segment were expanded with work on vehicle lighting solutions in response to the growing use of LED technology in automotive applications.

The successful completion of this development work could give birth to a new product field. In July 2007, Siemens AG signed a contract for the sale of Siemens VDO Automotive to Continental AG Hanover, subject to approval by the cartel authorities. www.siemensvdo.at

51

The innovative, highly integrated Syntegra drive system boasts forward-looking traction, bogie, and braking technology.

Siemens VDO Automotive restructured its core competencies and adopted a clear strategic orientation.

Information and CommunicationsSiemens Enterprise Communications

Siemens Enterprise Communications (SEN)

ManagementJosef Jarosch

Thomas-Charles Samstag

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Open communications products from SEN offer compa-nies forward-looking solutions that can be integrated easily into existing and future infrastructures. Open standards allow applications to be adapted perfectly to the customer’s individual needs. Open communications pave the way to universal communication: network-independent multimedia communication with a uniform user interface. In Austria, SEN expanded its role as the leading provider of voice and data networks.

Unified communications allow a company’s staff to access business resources securely from anywhere. With its voice over IP (VoIP) expertise, SEN allows companies to migrate safely to or to directly switch over to a pure IP platform and to optimize their everyday communication processes.

Fiscal year 2007 saw the launch of numerous award-winning products and innovations. These included the open communications platform OpenStage, the IP soft switch HiPath 8000 for large and very large enterprises, the open software suite OpenScape, which helps compa-nies coordinate their communication and information processes better, and the dual mode HiPath MobileCon-nect solution, through which employees can use a single telephone number and voice mailbox within the com-pany via WLAN and also outside of the company via a GSM wireless communications network.

For the provincial government of Styria, SEN installed a VoIP telecommunications network for fifteen sites with

4,000 phone extensions. A LAN and WLAN network was installed at the new Pappas headquarters in Salzburg, and the branches connected via VoIP. All Ötztal Tourism Association member towns were connected to a new shared telecommunications network. A fully integrated VoIP communication network was installed for the town of Hohenems. The data network at SPAR was replaced and VoIP implemented for the company.

In Romania, a data network was installed for over 200 border control and monitoring stations, as was a multimedia contact center solution for Banca Transilva-nia. HiPath solutions for voice and data communication were installed in the new government building in Banja Luka, for OMV in Serbia, and for Hofer in Ljubljana. An IP-networked telecommunications infrastructure was installed on the basis of HiPath 4000 for EVN in Bulgaria and Macedonia.

SEN S (Siemens Enterprise Communications Services GmbH), formerly itworx, installs and maintains high-performance communication systems and ensures their smooth operation. TOSCA supports the local service organizations and establishes professional, reliable service structures above all in Eastern Europe. ringo offers the professional handling of communication processes as a customer interaction center. www.siemens.at/open

Siemens Enterprise Communications GmbH (SEN), formerly COM E, is one of the leading providers of open communication solutions for companies of every size. Business processes are made more productive, faster, and more secure regardless of the device, network, or information technology infrastructure used.

Products and solutions from SEN stand for convenience, flexibility, and efficiency. The open communication platform OpenStage won the iF product design award 2007.

Information and CommunicationsIT Services and Enterprise Communications

Siemens Home and Office Communication Devices

IT Services and Enterprise Commu-nications (iSEC)

Siemens Home and Office Communication Devices (SHC)

iSECManagementEdward SchemberaGünter LukasMark Laws

SHCManagementEduard SchmidhoferMartin Zinner

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iSEC develops and sells information technology services, products, and solutions for enterprise communications.

iSEC – IT Services and Enterprise Communications GmbH was founded on April 1, 2007. Going beyond its fruitful research and development work for the group headquar-ters in Munich, iSEC has successfully established an impor-tant business base on the external market with the provi-sion of development services for non-group companies and other development work in the field of customer service management. iSEC has subsidiaries in the Czech Republic and Hungary and a development site in Turkey. The trans-fer of the centers of competence for Genesys, Command and Control Center, and Professional Services and also product responsibility for Hospitality (hotels) to iSEC under-scores this unit’s enterprise-segment expertise. iSEC boasts broad expertise in REMEDY solutions (service management). iSEC is also the project manager for the development of the HiPath 4000 Version 4.0 communication system, and for the components for HiPath 8000, IP gateways, and applications for telephone and WLAN connections and mobile devices. Highlights in the fiscal year included a call center solution with Genesys Express for Metro Cash & Carry in Moscow, PDS (professional dispatching) for Xiamen Airlines in China, and an upgrade for the HiPath hospitality service center at Intercontinental Berlin.www.isec-it.com

Siemens Home and Office Communica-tion Devices sells the complete Gigaset product range in twelve countries.

The focus of business for Siemens Home and Office Com-munication Devices GmbH (SHC) is on the distribution of the entire Siemens Gigaset product range, from cordless telephones for the fixed network and voice over IP (VoIP) through broadband products all the way to home media devices. Every second household in Austria uses a Giga-set telephone, and Siemens is the world market leader for cordless telephones.

The market share in SEE is already over 35 percent, and independent product tests and surveys underscore the range’s leadership in terms of functionality and usability. Siemens is one of the world’s top manufactur-ers of ADSL modems for private use, and is the number two for gateways. The home entertainment product portfolio is being expanded continually and the user interface optimized. Innovations in the fiscal year includ-ed the Gigaset telephones with integrated VoIP function-ality and the introduction of the WiMAX standard for fast Internet at home. A project with over 30,000 devices was completed with Telekom Austria, and broadband and cordless voice projects were completed in the Czech Republic, Slovakia, Croatia, Greece, and Romania. www.siemens.at/gigaset

The specialists at iSEC have broad expertise in enterprise communications.

The new Gigaset telephones with integrated VoIP functionality allow low-cost telephony over the Internet and over the fixed network.

54 Information and CommunicationsSiemens IT Solutions and Services

Siemens IT Solutions and Services (SIS CEE)

Division Management

Albert FelbauerHanns-Thomas Kopf

Edwin Schulz

Sector-specific IT solutions along the entire service chain enable customers of Siemens IT Solutions and Services (since July 1, 2007) to more effectively master their specific business challenges. No other IT specialist offers a more extensive spectrum of services – from strategic process consulting through software development and system integration all the way to the manage-ment and operation of IT infrastructures.

Siemens IT Solutions and Services took over the operation of RHI’s worldwide SAP systems. The project focused on process design and SAP implementation.

Siemens IT Solutions and Services’ comprehensive sec-tor-specific expertise and broad technological know-how and its close collaboration with other Siemens units provide its customers with clear added value. With some 2,500 information technology specialists, Siemens IT Solutions and Services is the market leader in Austria and is also responsible for business growth in the South Eastern Europe region and in Albania and Macedonia.

The strategic combination of multiple units that focus on international information technology and software development within the worldwide Siemens group, especially SBS, PSE, and SISL, has made Siemens IT Solutions and Services an IT powerhouse with the capabilities to cover all of its customers’ needs. The unit is managed from Munich and Vienna.

In Austria and the countries of the SEE region, this means even closer collaboration in the development of IT solutions. Customers include public sector organiza-tions, manufacturers, financial services providers, power utilities, telecommunications providers, and transport companies.

Siemens IT Solutions and Services offers a compre-hensive spectrum of industry-specific information tech-nology solutions. The portfolio focuses on the provision of technological consulting for the optimization of busi-ness processes and on end-to-end IT solutions to better enable customers to tackle their individual business challenges. Every project centers on a strategic partner-

ship with the customer. Thanks to its outstanding project management capabilities, the unit can implement even the largest and most complex IT projects competently and efficiently. Siemens IT Solutions and Services also offers the partial or complete takeover of IT processes in customer-oriented outsourcing models. Under such agreements, the customer’s IT systems and applications are run and maintained around the clock in certified computer centers operated according to the most strin-gent safety and security standards. The newest global production support center was opened in Timişoara, Romania, in July 2007.

Siemens IT Solutions and Services developed an archive solution for notary publics and attorneys that complies with the new legal requirements and has been operating the system since July of this year. ARAG Ver-sicherung Austria outsourced the operation of its com-plete IT systems to the unit.

Siemens is currently implementing phase two of the national border control information system for the Croatian ministry of the interior. IT Solutions and Services played an important role in the development of a strategic investment project between the Bratislava water works (BVS) and Siemens for an integrated control system.www.siemens.at/it-solutions

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Siemens IT Solutions and Services (Associates and Affiliates)

Information and CommunicationsSiemens IT Solutions and Services

addIT ManagementAlois Süssenbacher

amsbgManagementWerner StraubingerJohann Pinisch

smart technologiesManagementHansjörg Tengg

unit-ITManagementKarl-Heinz TäubelPeter Handler

addITaddIT Dienstleistungen GmbH & Co KG forms long-term customer partnerships on the basis of its specialist exper-tise, excellent service, and innovative strength. Business in the 2007 fiscal year focused on supporting customers in their international growth. Examples include Infineon Technologies and Hypo Group Alpe Adria. Another im-portant focus was the optimization of business processes by means of IT solutions. Production processes at Mondi Packaging were optimized using Knowledge for Produc-tion, or KfP in short. The office of the Carinthian provin-cial government commissioned addIT with the imple-mentation of the SAP budget management system. www.addIT.at

amsbgAs the leading IT specialist in the employment services segment, Arbeitsmarktservice BetriebsgmbH & Co KG (amsbg) specializes in complete IT solutions for the Austrian Employment Service (AMS). amsbg offers a comprehensive range of application, technology, and process consulting as well as customer services. Business in the fiscal year focused on the integration of a docu-ment management system for AMS. State-of-the-art technology was installed in the computer center and existing applications migrated to a different database platform to improve the system’s performance.www.amsbg.at

smart technologies smart technologies Management Beratungs- und Beteili-gungsgesellschaft m.b.H. develops and sells systems for deregulated energy markets, national carbon dioxide emission registries, and securities settlement systems. Projects were successfully completed in Macedonia and Bulgaria during the 2007 fiscal year (clearing and settle-ment for the respective electricity markets). The largest order fulfilled in Austria was for the delivery of a system for the administration and settlement of renewable energy to OeMAG (clearing agent for Ökostrom AG).www.smarttech.at

unit-ITThe most successful SAP provider in Austria has estab-lished itself as a holistic SAP expert for the manufactur-ing industry. unit-IT Dienstleistungs GmbH & Co KG sets itself apart from the competition through its custom-tailored SAP solutions for upper-tier medium-sized manufacturers. In addition to its SAP activities, unit-IT also offers mobile logistics solutions and is a leading specialist for SAP-based mobile inventory systems. The IT infrastructure of several renowned industrial companies is run at the modern, high-performance computer center in Ranshofen. Customers include Austria Metall AG (AMAG), backaldrin, Berglandmilch, HALI, KEBA, Miba, and Suzuki.www.unit-IT.at

unit-IT offers made-to-measure SAP solutions for manufacturers. backaldrin placed an order for the implementation of an SAP-based control system for a new high-bay warehouse.

addIT supports its customers in their international growth, including Hypo Group Alpe Adria.

56 Program and System EngineeringSiemens IT Solutions and Services Program and System Engineering

Siemens IT Solutions and ServicesProgram and System Engineering (SIS PSE)

PSE has been able to fully leverage its strengths in the newly founded Siemens IT Solutions and Services. As part of the three large delivery units of Siemens IT Solutions and Services, PSE provides software development services for Siemens’ business around the world. Development work was completed for Siemens AG as part of this international cooperation. A key customer is the Nokia Siemens Networks (NSN) joint venture that was founded in 2007.

Division Management

Herbert DrexlerGerald Feilmair

Fiscal year 2007 was dominated by restructuring in terms of business scope and integration within the group. Program and System Engineering PSE has been part of the newly founded Siemens IT Solutions and Services SIS since the beginning of 2007. Part of the development team was transferred to the newly founded iSEC as part of the carve-out of the former enterprise activities in April 2007. PSE increased its sales volume again in the fiscal year (adjusted for this carve-out).

In accordance with its new scope of business, the unit continued to expand its nearshore and offshore sites. Business in the individual countries tended more towards qualitative growth than quantitative growth. Individual competencies were expanded at several inter-national sites in line with the specific market require-ments. The trend towards worldwide collaboration – Intelligent Net Working – also continued. System test and test field activities increased in Slovakia. In addition to the continuation of a project with Slovak Telecom, this made it possible to launch a new, large-scale project with T-Mobile Croatia.

Business in the medical segment was very good thanks to extensive work performed for the Medical Solutions unit. Business volume didn’t just grow, it actu-ally doubled, and Siemens IT Solutions and Services PSE established itself as a preferred partner for the integra-tion of image management products in existing hospital systems. In March 2007, the picture archiving and com-

munication system syngo® Imaging went into productive use at Celle General Hospital in Germany after a short four-month implementation phase. The digital image archive and online image distribution have considerably improved daily work routines. Siemens IT Solutions and Services PSE is supporting the project with an extensive service package.

Another strategic focus of Siemens’ business and one of the first joint successes to arise from the targeted international collaboration between the group’s IT and development specialists is the five-year contract with Enbridge Gas Distribution (EGD) in Canada. Siemens IT Solutions and Services and Sapient were commissioned with the implementation of an SAP system for applica-tion management services. The objective of this project is to replace the existing customer information system that is managed by Accenture. The contract was won thanks to the outstanding team effort of the Siemens IT Solutions and Services units in Canada, Austria, and India. Siemens IT Solutions and Services PSE will be handling the data migration part of the project.

Siemens IT Solutions and Services PSE is increasing its development work on network and service manage-ment systems (operations support systems [OSS]). These help mobile network operators increase the reliability of their infrastructure, cut their operating costs, and main-tain or increase their global competitiveness. A key prod-uct for this is the CONDIS inventory management system.

57Program and System EngineeringSiemens IT Solutions and Services Program and System Engineering

tries including Spain, Croatia, and Switzerland. Biometric access systems identify visitors at amusement parks run by Anheuser Busch and MGM in the U.S.A.

In March 2007, Siemens IT Solutions and Services PSE won the prize for the best overall design for a high-speed signal processor at the PCB Design Conference West in Santa Clara, California. A traditional focus of business is innovative applications for new wireless technologies. Work is currently underway on the imple-mentation of a nationwide TETRA radio network in Malaysia. PSE already played an important role during the project planning phase, and Siemens specialists will now be involved in the project up to its completion. The solution will also employ several products from the TETRA family, including the newly developed TETRA dispatcher. www.pse.siemens.at

Siemens IT Solutions and Services PSE’s Biometrics Center is the worldwide group’s R&D headquarters for biometric solutions. SIS PSE is playing a key role in the introduc-tion of television on the mobile phone in Austria, which is set to launch in 2008. SIS PSE is providing increasing application support to the Medical Solutions unit.

By leveraging its product portfolio and its innovative strength, Siemens IT Solutions and Services PSE achieved business growth of as much as 50 percent with new and existing customers in some areas. This success firmly anchored the unit’s products and services in the Nokia Siemens Networks (NSN) portfolio, where OSS/BSS is now one of the five strategic pillars.

Siemens started test operation of DVB-H in Austria in cooperation with its pilot project partners A1 mobilkom austria, Salzburg University of Applied Sciences, Hutchison 3G Austria, Austrian Broadcasting Corpora-tion, and ORS. Since the launch of DVB-T, digital terres-trial television, viewers have been able to access addi-tional services through their television sets. Austrian Broadcasting Corporation offers a content portal for its programming with additional information and chat forums that were developed in close cooperation with Siemens IT Solutions and Services PSE. These services can be accessed on television sets through the Interac-tive Application Center (IAC) i4TV solution, and will be available on mobile phones starting in 2008.

Siemens IT Solutions and Services PSE’s biometrics center is a group-wide research and development hub for biometrics products and services that have been used successfully in a number of national border control projects with biometric passports. The Homeland Secu-rity Suite biometric product family was the basis for the realization of national identification documents in coun-

Industrial ManufacturingSiemens Industrial Manufacturing, Engineering and Applications

Siemens Industrial Manufacturing, Engineering and Applications (SIMEA)

Division Management

Friedrich PresslErnst Mayrhofer

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As a relatively small unit at a location with comparatively high wage costs, SIMEA again put on a good showing in global competition during the fiscal year and achieved satisfying growth. The continuous optimization of all processes, the consistent implementation of productiv-ity-boosting measures, the leveraging of cost advantages at the SIMEA plant in Sibiu, Romania, and the continual further training of the unit’s staff make this success possible.

In Vienna, SIMEA concentrates on the development and series manufacture of complex products. The port-folio includes industrial power supply units, direct-cur-rent drives, power components for rotary-current drives, power plant exciter components, digital transmission components for telephone network operators, radios for government and emergency personnel, and various electronic components for industrial applications.

SIMEA Vienna profits from its close collaboration with the divisions of the parent group. In Vienna, for example, a center of competence for power plant exciter components was established after the engineering activi-ties were taken over from Power Generation. This seg-ment is growing nicely. A design-for-customer center was also set up for industry-specific solutions on the basis of the SINAMICS platform from Automation and Drives.

The establishment of competencies for a system test laboratory for SITOP power supply units was completed

successfully in the power supply units segment. The development of the new power supply generators SITOP Modular and SITOP Select, which both offer extremely high efficiency in a compact package, was also complet-ed during the 2007 fiscal year.

The industrial and communications segment at SIMEA was impacted significantly by the carve-out of Siemens’ communications activities. Nevertheless, inter-esting new prospects are opening up here, for example in the automotive sector. SIMEA manufactures diagnostic units for service garages and motor controllers for vari-ous manufacturers. The unit also expanded into the aviation and aeronautics sector with the manufacture of GSM base stations for in-flight mobile telephony for aircraft from Airbus and with the manufacture of terres-trial diagnosis and power supply units for the ESA’s Galileo satellite project.

Business in Siegendorf centers on the highly auto-mated manufacture of large lots of electronic modules for controlling Bosch Siemens Haushaltsgeräte (BSH) home appliances. Because of the enormous cost pres-sure in this segment, the Siegendorf site had to be thoroughly restructured to ensure its continued viability. A focus of this was the division of value-creating activi-ties between Siegendorf and Sibiu, whereby the produc-tion of labor-intensive products was shifted to Sibiu and large lots are manufactured in Siegendorf. This plant also won the contract for the electrical components in the

Siemens’ electronics plants work as a coordinated manufacturing group and offer their customers complete electronics solutions. SIMEA’s core competencies are development, logistics, and manufacture.

The planned manufacturing capacity increases have been completed in Sibiu, Romania. The plant focuses on labor-intensive production.

Industrial ManufacturingSiemens Industrial Manufacturing, Engineering and Applications

Siemens Mechanical Solutions

Siemens Mechanical Solutions (MWW)

In Linz, the cabinet manufacturing activities of ELIN EBG and the unit I&S were combined to create the Racks Cabinets Assembling segment.

MWW offers its customers a complete package of development, design, manufacture, and logistics solutions from a single source.

ManagementFranz NaglRichard PfisterRobert Artwohl

new generation of BSH dishwashers, and the tests for the largest dishwasher project completed by BSH to date have been completed successfully.

In Linz, the switch cabinet manufacturing activities of ELIN EBG and the unit I&S were combined to form the Racks Cabinets Assembling (RCA) segment, which is part of the SIMEA plant group. SIMEA RCA is the number one on the Austrian market and a highly capable switching equipment service provider for Siemens SEE. The integra-tion went exceptionally well, and the unit fully met the expectations that were placed in it. RCA recently landed the order for the switch cabinets in the Railjets, the new Austrian Railways comfort trains for main line travel that are being built by Austrian Railways and Siemens Trans-portation Systems.

In Sibiu, Romania, the planned manufacturing capacity expansion has been completed on a total of four lines. The plant has a staff of nearly 400 and concen-trates on the production of labor-intensive products with a low level of automation and also helps to support the growth of SIMEA in Austria with its low cost level. The plant is also beginning to take on development work.www.siemens.at/simea

MWW is experienced in all standard mechanical manufacturing technologies.

The extensive portfolio of Siemens Mechanical Solutions (MWW) was expanded by the addition of adhesive tech-nologies during the fiscal year. Together with MWW’s design and development competence and its made-to-measure logistics solutions (such as ship-to-line delivery from SIMEA), customers benefit from complete solutions from a single source. MWW serves the electronics indus-try, the medical equipment industry, and the rail vehicle industry, and the unit also expanded into the aircraft construction segment in fiscal year 2007. Key factors enabling MWW to make the leap into this high-tech area were its outstanding manufacturing quality and quality assurance systems and also its ability to provide the required complete documentation.

Sales in the fiscal year were increased not only through business with existing customers, but also by winning a large number of new customers. As Siemens AG’s center of competence for current collectors for rail vehicles, MWW enjoyed particular success with the new SSS400+ high-speed current collector – with which the Spanish Velaro broke the world speed record. This product is also being used in projects being completed by Siemens and other manufacturers in China, Russia, and Korea.www.siemens.at/mww

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Studio and Media SystemsBFE Studio und Medien Systeme

BFE Studio und Medien SystemeBFE offers planning, engineering, and implementation services from a single source for complete studio and media systems.

Major projects including a new broadcast truck for Austrian Broadcasting Corporation laid an excellent foundation for business in the coming year.

In accordance with its strategy of innovation, BFE Studio und Medien Systeme GmbH develops purpose-built technologies and holistic system solutions that are unique and that showcase the company’s technical expertise. BFE’s core competency is the planning and implementation of complete studio and media systems with products and services from all of Siemens’ manufac-turing units. These include software and network sys-tems, electrotechnical equipment, mechanical compo-nents, cabinetmaking services, assembly, quality control, training, and maintenance. All equipment and compo-nents for a solution are selected in accordance with the system requirements and the customer’s wishes, and not on the basis of preference for any specific products.

Business volume grew nicely again during the 2007 fiscal year. The same success factors that came into play last year, namely good overall economic growth on the home markets, increased competence in broadcast IT, and increased collaboration with Siemens, were again the basis for the company’s gratifying performance this year. The following projects are good examples of this successful strategy.

The renovation of WDR’s regional studios was the largest single project ever completed by BFE in Germany. The scope of delivery included state-of-the-art radio and television broadcast systems for ten regional studios.

The unit’s expertise in the construction of modern broadcast trucks earned it an order for a twenty-camera

HDTV broadcast truck for TVP Poland. This order and the order for satellite uplink vehicles from the Italian broad-casting company RAI also opened up new export markets for BFE. The experience that the company has gathered at major events over the past years also brought new business again this year, including six DSNG vehicles for federal soccer league coverage and the construction of media stands at most of the stadiums for the upcoming European soccer championships, including Ernst Happel Stadium in Vienna.

A good basis for the continuation of this positive trend was laid with the successful completion of major projects such as two television and nineteen radio stu-dios and main switching rooms for BBC in Glasgow, the IT-based editing system for WDR’s Sportschau program, and two broadcast trucks for Austrian Broadcasting Corporation in Vienna. The overall sector growth that is resulting from the conversion to HDTV and the elimina-tion of tape in editing systems will also ensure continued stable business development for the company.www.bfe.tv

ManagementHorst Ernerth

Manfred RumpfChristian Luger

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Other AffiliatesBSH Hausgeräte Gesellschaft

Fujitsu Siemens Computers

BSH Hausgeräte Gesellschaft

Fujitsu Siemens Computers (FSC)

BSHManagementFranz SchlechtaHartmut Just

FSCManagementWolfgang HorakWalter BrandstätterBernd Schauer

Fujitsu Siemens Computers GesmbH is Europe’s leading manufacturer of computer systems and has an unmatched portfolio.

With its focus on mobility, the Dynamic Data Center (DDC), Digital Home, and associated services, Fujitsu Siemens Computers GesmbH offers a broad spectrum of products and services. The integration of SBS PRS rounded out the company’s scope of offerings for private and professional computer centers. A key focus is capturing market share with the DDC, a system based on modern virtualization and automation technologies that allows server farms, Unix infrastructures, e-mail systems, and backup systems to be run more flexibly and at lower cost with less physical infrastructure. Digital Home serves the same function, but is targeted at private households and small businesses. AMS was won as the world’s first refer-ence customer for the latest Solaris server generation. Additional highlights included virtualization projects with public-sector organizations and banks, and the opening of the group center of competence for virtualization in Vienna. A project with 2,300 laptops for the Austrian Football Association and a managed service project for the Austrian postal service cemented the company’s leading position as a provider of laptop and desktop computers on the Austrian market in 2007. www.fujitsu-siemens.at

BSH sells the most popular home appli-ance brands in Austria and increased its lead on the market again during the fiscal year.

The brand Siemens and its broad range of built-in kitchen appliances profited especially well from the trend towards devices that harmonize with a contemporary lifestyle. Energy and time savings and reduced resource consumption have also become firmly established as purchase criteria for consumers. These factors have been BSH’s core competencies for years. The company’s specialist-dealer-oriented sales concept was decisive in its success on the Austrian market again this year.

Increasing market prices helped to boost sales revenue in Austria in spite of a moderate decrease in sales volume.

All of BSH’s brands saw sales and market share in-creases in Austria during the year, especially the Siemens brand, which has come head to head with the Austrian market leader (according to GfK statistics). Overall, BSH Hausgeräte GmbH further extended its market leadership in terms of aggregate sales for all brands.www.bsh-group.at

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Sales and market share increased for all of BSH’s brands. Siemens’ new multifunctional built-in steam oven is shown in the picture.

The Dynamic Data Center allows server farms, Unix infrastructures, e-mail systems, and backup systems to be streamlined and managed more efficiently.

Real Estate / FinancingSiemens Real EstateSiemens Financial Services

Siemens Real Estate (SRE)

As a specialist for financial engineering, SFS structures financing agreements and risk hedging concepts.

With its broad spectrum of financial engineering serv-ices, Siemens Financial Services (SFS) makes a key contri-bution to the sales success of Siemens Group Austria’s operating units and companies. Innovative, made-to-measure financing models can now be offered through-out Central and South Eastern Europe, especially thanks to the establishment of expert finance companies across the economic region. A creative financing solution has often been the make-or-break criterion in the award of a contract in nearly all areas, including medical equip-ment, industrial plant building, power plant projects, and traffic systems. Important public lighting orders were secured in SEE countries by means of interesting leasing solutions. Cross-border financing solutions for MED, I&S, PTD/PG, and TS were also implemented in cooperation with national and international business and develop-ment banks to facilitate the growth strategy in SEE. SFS Guarantees and SFS Insurance apply their specific exper-tise to support the entire sales process. www.siemens.at/sfs

SRE is responsible for the profitable utilization of Siemens’ real estate holdings.

Siemens Real Estate manages and is responsible for Siemens CEE’s real estate portfolio, which currently consists of some 170 sites with a total useable area of 870,000 square meters. Roughly half of these sites are in the South Eastern Europe region. The site concept for Zagreb was decided and implemented in collaboration with the Croatian regional company. For this, one rental site was closed and the additional space needed to cover the unit’s medium-term requirements rented in a new office building directly next to the company-owned site to leverage the advantages of a single-site strategy.

A major success was also achieved in the sale of Company-owned property: the contracts for the sale of the Gudrunstraße site in Vienna were signed in June. Siemens will continue to use the site until it relocates these operations to Siemens City Vienna at the Siemens-straße campus, the first phase of which is already under construction. It will be ready for use at the beginning of 2010 and will have workplaces for roughly 3,000 employees. www.siemens.at/sre

Siemens Financial Services (SFS)

The first phase of Siemens City Vienna at the Siemensstraße campus is already under construc-tion and will be ready for use at the beginning of 2010.

SFS’s custom-tailored financing solutions are often a decisive factor in the decision to award a contract.

SREDivision

ManagementFranz MundiglerChristian Georg

Draxler

SFSDivision

ManagementWilfried Stuckart

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FinancingSiemens Pensionskasse

Siemens MitarbeitervorsorgekasseSiemens Pension Data Services and Consulting

Financial Services Providers

SPKManaging BoardStefan EberhartingerThomas TraxlerWolfgang Herold

MVKManaging BoardAlexander VojtaMichael Lucan

SPDSCManagementStefan EberhartingerHarald Habersam

Siemens Pensionskasse (SPK)

The assets under management by Siemens Pensionskasse (SPK) achieved a performance of 6.17 percent in fiscal year 2006 according to Austrian Control Bank calcula-tions. Pension fund agreements have been signed with 31 companies. Contributions to the funds totaled €32.6 million, and the assets under management as of Decem-ber 31, 2006, totalled €638 million. SPK paid €28 million in pension benefits and served 20,909 persons.

Business in the year focused on the integration of the former VA TECH employees who transferred from APK Pensionskasse. Up to and including 2007, this increased the number of current and future beneficiaries served by SPK by 4,500 persons or roughly €100 million in actu-arial reserves compared to 2005. The volume of regular contributions increased by roughly 40 percent.www.siemens.at/pensionskasse

Siemens Mitarbeitervorsorgekasse (MVK)

Siemens Mitarbeitervorsorgekasse AG increased its business volume by more than 40 percent compared to the prior year. This can be attributed to the second transfer campaign for the new severance pay system. A total of 1,360 employees from twenty-five Siemens

units and companies decided to transfer to the new severance model in the months of May and June 2007. This increased the number of future beneficiaries to over 25,100, and the assets under management now total €115 million.

The net return on the invested assets was 4.3 percent in calendar year 2006. Siemens MVK achieved an aver-age performance of 6.25 percent per year in its first four years of operation, the best investment result of any severance pay fund in the country by far. www.siemens.at/mvk

Siemens Pension Data Services and Consulting (SPDSC)

Siemens Pension Data Services & Consulting GmbH’s result for the year was again well above plan. In the insurance brokerage segment, the sale of private insur-ance policies to Siemens employees was expanded considerably. This unit made a significant contribution to the company’s good performance and enabled it to strengthen its equity capital base.

The affiliate SIELOG Systemlogik GmbH offers IT solutions for the employee-oriented management of social capital. Earnings are expected to increase consid-erably in the fiscal year.www.siemens.at/spdsc

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Successful Siemens MVK campaign for the new severance pay system: 58 percent of all employees have already signed up.

Siemens Pensionskasse made pension payments totaling €28 million and served 20,909 persons (active and retired employees) during the 2007 fiscal year.

Declaration ofIndependence2007

64 FinancingINNOVEST Kapitalanlage

INNOVEST KapitalanlageINNOVEST Kapitalanlage AG specializes in asset management for companies and offers individual investment strategies for pension and institutional assets.

INNOVEST selects highly specialized regional investment companies to pick the individual securities in each asset class. Customers can view daily reports on the Internet.

Managing BoardJohann Maurer

Konrad Kontriner

As a specialist for institutional asset management, INNOVEST Kapitalanlage AG offers individual investment strategies for pension and institutional assets. The com-pany has applied the successful manager-of-managers approach in its asset management activities for years. Under this approach, highly specialized regional invest-ment companies are commissioned with security selec-tion for each asset class.

The various segments are worked efficiently using clearly defined strategies, performance indicators, and internally developed assessment methods; the interna-tional investment companies are chosen by means of a strict selection process. At present, the investment companies serving INNOVEST include Goldman Sachs, Deka, Invesco, and JP Morgan. With over €4.5 billion in assets under management and more than ninety invest-ment funds, INNOVEST is one of the largest providers of manager-of-managers funds in the German-speaking world.

INNOVEST focuses consistently on optimizing its customers’ investment returns. For this, it relies on its strengths in institutional investment, innovative meth-ods, flexibility, first-class service, international certifica-tion, and its innovative value protection concepts. Thanks to its history, it also has a unique understanding of the needs of institutional investors. INNOVEST lever-ages all of this to offer its customers concepts to meet their specific needs.

INNOVEST uses know-how that it has developed together with international economic experts and uni-versities to create innovative methods that optimize its customers’ earnings while minimizing their risk. And because it is not tied to any one bank, INNOVEST is always free to select the best bank partners in Austria and abroad for each individual case.

This enables the company to implement its fund-of-fund concepts for its customers quickly and at low cost. INNOVEST customers can also access an Internet portal with extensive daily reports and evaluations that make their investments completely transparent. INNOVEST has oriented its work towards international standards such as SAS 70 and GIPS (Global Investment Performance Stand-ards) for years. The application of innovative value pro-tection concepts enables the company to protect against risk while seizing earnings opportunities.

The quality of INNOVEST’s funds is also demonstrated by their repeated excellent showing at the Austrian Umbrella Fund Awards, the Standard & Poor’s Fund Awards, the Lipper Fund Awards, and the Euro Fund Awards. The fund siemens/rich&liquid was rated AA by Telos, a testament to the very high quality standards it fulfils.www.innovest.at

Key Figures 2003–2007 (see inside front flap)

Statement from the Managing Board 2

Managing Board of Siemens AG Austria 6

Report of the Supervisory Board 8

Supervisory Board and Managing Board Appointments 12

We create the future. 14

The Economic Region 28

Divisions 32

Automation and Control 34

Power 44

Medical 46

Transportation 48

Information and Communications 52

Program and System Engineering 56

Industrial Manufacturing 58

Studio and Media Systems 60

Other Affiliates 61

Real Estate / Financing 62

Reports 65

Management’s Discussion and Analysis 66

Siemens Group Austria 92

Corporate Responsibility 96

Index of Abbreviations 108

Group Structure (see inside back flap)

In the Supplement

Balance Sheet for Siemens AG Austria

Income Statement

Appendix with Notes to the Balance Sheet and Income Statement

Reports

66 Management’s Discussion and Analysis

Economic Conditions

The projections for economic growth in Austria and in the entire economic region remain positive. After Austria’s GDP grew1 by a record-breaking 3.3 percent in 2006, the economy continued to

expand robustly in 2007. GDP growth for the full year is expected to reach 3.4 percent (0.75 percent better than the eurozone average), driven primarily by strong exports and vigorous investments in capital equipment and construction. This continued good economic situation is also having a positive effect on the labor market and government tax revenues. Private consumption is still restrained, though, especially as a result of the crisis on the international financial markets, and is only projected to grow by 1.9 percent for 2007, remaining below the long-term average for the seventh year in a row. Economic growth is still expected to decelerate to 2.4 percent in 2008.

The economic projections for the Central and Eastern European economic region as a whole are also still positive. GDP growth in SEE is projected to reach 6.3 percent2 in 2007, just under the 6.7 percent achieved in 2006. Experts are anticipating that growth in 2008 will be slower at 5.7 percent, and growth in CEE is expected to total 4.9 percent in 2007 and 4.1 percent in 2008. While these growth rates are still good, we have apparently reached the peak of the current economic upswing. As the economies in South Eastern Europe (SEE; the CEE region without Austria) continue to converge with those of Western Europe, economic growth in these countries will continue to outpace the average growth rates for Europe as a whole for some years.

Business Development for Siemens AG Austria

General

As good economic conditions prevailed overall, business for Siemens CEE in general and Siemens AG Austria in particular was very satisfactory3. New orders and sales as adjusted for integration and carve-out measures increased for Siemens AG Austria in fiscal year 2007. This growth can be attributed both to mass business and to the winning of individual major orders.

The course of business in 2007 was radically affected by major changes in the product portfolio both for Siemens CEE and Siemens AG Austria. Siemens AG Austria took over the industrial activities of Siemens Elin Buildings and Infrastructure GmbH & Co (formerly VA TECH Elin EBG GmbH & Co) on October 1, 2006. The group decision to carve out the Communications activities was also implemented on December 22, 2006, when the units Communications Carrier and Communications Enterprise were spun off into two separate companies. The Communications Carrier activities were subsequently brought

Siemens AG Austria Management’s Discussion and Analysis

1) Source Austria: Austrian Institute of Economic Research projection from September 2007.2) Source economic region: BA-CA CEE Quarterly, 3/2007.3) The Management’s Discussion and Analysis primarily discusses Siemens AG Austria, but also the development of the economic

region managed by Siemens AG Austria (as of September 30, 2007).

67Management’s Discussion and Analysis

into the Nokia Siemens Networks (NSN) joint venture on April 1, 2007. Communications Enterprise is now operating as a separate subsidiary (Siemens Enterprise Communications GmbH – SEN). This operational change was also implemented in all other countries of the economic region.

For Siemens AG Austria, the resulting portfolio change reduced sales as of the balance sheet date by roughly €190 million. However, increases in the other divisions more than compensated for this loss.

New orders for Siemens AG Austria amounted to €3.376 billion in fiscal year 2007, 8.2 percent higher than the €3.121 billion achieved in fiscal year 2006. In addition to significant increases in new orders for Automation and Drives, the major order from Austrian Railways for the Railjet (second option), the order for the combined-cycle power plant in Timelkam (including a maintenance agreement), and the mainte-nance contracts for the power plants in Simmering and Donaustadt were major contributors to this performance.

Sales in the fiscal year totaled €2.525 billion, slightly better than the very pleasing €2.485 billion achieved in fiscal 2006. This encouraging result can be attributed in large part to the settlement of major projects in Transportation Systems (Taurus locomotives for Austrian Railways), Power Transmission and Distribution (Bucharest South), and Power Generation (Repowering Simmering – module two), as well as to higher order intake for Automation and Drives and Siemens Industrial Manufacturing, Engineering and Applications.

Exports in the fiscal year accounted for €1.223 billion of the Company’s sales (fiscal year 2006: €1.240 billion).

The business activities added to the group after the acquisition of VA TECH in 2005 also made a major contribution to Siemens CEE’s success in 2007. Siemens VAI (formerly VOEST-ALPINE Industrieanlagen-bau) and the transformer plants in Linz and Weiz are especially significant in this regard. The latter were previously operated as two separate companies, but were combined to form Siemens Transformers Austria GmbH & Co KG on October 1, 2007.

Siemens AG Austria’s strategic objective is to consistently and sustainably increase its value, especially by expanding its market position in the South Eastern European countries of its economic region. To this end, the Managing Board launched the growth program SucCEEd during the 2007 fiscal year.

However, a company must also take into account the social and ecological effects of its actions to achieve its long-term goals and to maintain its competitive strength. Siemens CEE sees this corporate responsibility as an integral part of its modern, forward-looking management approach.

Sustainable business is both an opportunity and a guiding principle. Siemens Austria can look back on a long tradition of corporate responsibility, and is proud to continue it and spread it throughout the entire CEE economic region. Providing support for cultural, athletic, and social projects is just as much an expression of this commitment as are our unceasing efforts to make wise and efficient use of our natural resources.


Siemens AG Austria Divisions

Automation and Drives (A&D)

2006 2007 on prev.year

Sales (mn euros) 232.5 317.4 36.5%

Employees 251 369 47.0%

Automation and Drives (A&D) performed extremely well in all business segments throughout the economic region. All of the economic sectors served by the division are continuing to grow nicely, and conditions in the machine building industry were good again in the 2007 fiscal year.

The successful incorporation of VA TECH’s activities in the automotive sector has enabled Siemens AG Austria to provide products and services for the automaking industry. The integration of the automotive and chemicals segments was an outstanding business success.

Thanks to the incorporation of the activities of Flender with its coordinated range of mechanical and electronic drive train components, the division can now offer complete machines and systems from a single source. An assembly center for geared motors is currently being set up to reduce delivery times.

In addition to its product sales, A&D also offers end-to-end automation solutions for the chemicals, pharmaceuticals, machine building, petrochemicals, and food and luxury goods industries.

The division considerably expanded its market share for low voltage electrical equipment, and is the market leader in the entire economic region with its products and solutions.

In Electronic Assembling (EA), A&D also further expanded its leading position on the market for pick-and-place machines. The division is increasing the volume and range of services it offers in this segment.

Industrial Solutions and Services (I&S)


Sales (mn euros) 157.4 275.9 75.3%

Employees 682 885 29.8%

Industrial Solutions and Services (I&S) is the system and solution integrator for industrial systems and infrastructure and a complete, full-lifecycle service provider for complex industrial systems from planning and construction through operation to maintenance and modernization. I&S uses electrotechnical products from other Siemens units to boost the productivity and competitive strength of companies in the metallurgy, pulp and paper, water treatment, oil and gas, district heating, cable car, road infrastruc-ture, and industrial services industries.

The division has a large order backlog, especially in the segments metal, Reject Power (waste incineration plants with an impeller wheel system), and electrical equipment for cement plants in the Middle East.


The telematics segment has grown into a major source of sales and earnings in recent years. Growth prospects here are very good, as they are for the numerous international Cable Liner projects and refinery logistics projects (filling and unloading stations for tank trucks and cars). Business potential in the postal automation and airport logistics segments is also very good; projects here included the installation of a baggage handling system at Sibiu airport in Romania.

Major projects were completed for customers such as voestalpine Stahl (hot galvanizing line four), Mittal Steel in Poland (power supply and drive systems for the new high-output hot-rolling plant), and for OMV (engineering and construction of the control system for the Schönkirchen natural gas storage facility).

Building Technologies (SBT)


Sales (mn euros) 151.7 154.3 1.7%

Employees 658 654 –0.6%

The success of Building Technologies (SBT) is rooted in the use of state-of-the-art technologies and products for building infrastructure and automation, fire protection, safety, and security. The division offers complete solutions that go far beyond standard technical building systems, and offers a depth of process knowledge available from no other provider on the market.

In the safety segment, the unit expanded its portfolio with the Command and Control Center software for security centers.

Increased sales in Austria and throughout the economic region reflected SBT’s improved market position. Growth in the fiscal year focused in particular on expanding the safety and security segment and the unit’s power optimization activities.

In addition to SBT’s focus on its core business, special initiatives targeted the vertical markets hospital-ity, pharmaceuticals, multifunctional centers, and total building solutions (the integration of all technical infrastructures in a building into a single system).

Building automation, fire protection, and safety and security systems were delivered for shopping centers in Bulgaria and Slovakia. Additional major projects included the delivery of a public address system for Vienna International Airport, various video systems, and fire detection systems for metro projects.


Power Transmission and Distribution; Power Generation (PTD/PG)


Sales (mn euros) 186.7 282.3 51.2%

Employees 500 570 14.0%

Power Transmission and Distribution; Power Generation (PTD/PG) profited again from rising demand for power generation and distribution systems in the fiscal year, and continued to grow nicely on the individual markets of the economic region especially. Power efficiency was again a central topic on the market.

The division expanded its portfolio by introducing new, complementary switching technologies (the Dead Tank Compact Switchgear) and by acquiring KK&K (now Siemens Turbomachinery Equipment GmbH) in the segment for small steam turbines and compressors.

The Power division’s primary objectives are to increase its market share for high and medium voltage systems and solutions, to improve its position on the market for protection and switching equipment, and to increase its focus on major power plant projects. In sales, the division is seeking to build up a market base for service provision and to increase its business with industrial customers by expanding its regional presence.

Several major contracts were won in fiscal year 2007, including the order for the construction of the combined cycle power plant in Timelkam and the modernization of the control systems at the steam power plant in Dürnrohr. Other projects were completed successfully and handed over to the customer, including the refurbished transformer substation in Fundeni, Romania.

Medical Solutions (MED)


Sales (mn euros) 119.9 118.6 –1.1%

Employees 247 253 2.4%

Medical Solutions’ (MED) strategy focuses on the provision of solutions that unite imaging systems and molecular medicine with information technology. This significantly increases the quality of processes in preventative care, diagnosis, therapy, and care provision while cutting costs significantly at the same time.

In addition to its responsibility for the economic region, MED Austria is also responsible for sales in the Central South region (CEE, Switzerland, and Turkey).

Business on the market is being influenced on the one hand by rather slow growth in the sale of equipment for the generation of diagnostic data, and on the other by very rapid growth in the adoption of information technology for medical applications. The electronic patient file holds great potential for cross-regional projects.


MED again based its activities for the improvement of clinical processes on Soarian, a combined sotware system and process analysis tool. Soarian was used in projects at Vienna General Hospital and Wels regional hospital, for example. The particular challenge in such projects is the complex nature of creating a functional link between clinical operations and university research.

MED again maintained its market leadership in Austria and the economic region in the face of fierce competition. A scientific cooperation agreement was concluded with the Medical University of Vienna during the fiscal year.

Siemens Health Management’s (SHM) primary objective is to enable profitable growth for the Medical division and partner units through professional, holistic project development.

Transportation Systems (TS)


Sales (mn euros) 253.2 376.2 48.6%

Employees 193 188 –2.6%

Business was again very robust for Transportation Systems (TS) in Austria and in the SEE region. The unit expanded its position on the Austrian market further by winning an order for forty-four

Railjets from Austrian Railways. Other noteworthy successes included the modification and expansion of locomotives for the Railjet, passenger information systems for the future double-decker passenger coaches, an order for an ETCS Level 1 train control system in Slovakia, the modernization of the line between Pragersko and Ormož in Slovenia, and an order from the Romanian rail operator CFR for the modernization of the rail power systems on the line between Fundulea and Feteşti. Orders were also placed for signaling equipment for Bucharest’s mass transport system.

Diesel Desiro multiple-unit trains were delivered to Austrian Railways and multi-system locomotives to Austrian Railways and Slovenian Railways during the 2007 fiscal year. The delivery of the second generation of the ULF tram to the Vienna Transport Authority also began.

The division was again very successful outside of SEE. Infrastructure business continued to grow nicely in Algeria and Tunisia. The first milestone was reached in the contract with Algerian Railways for the delivery and installation of safety and telecommunications systems.

The Infrastructure unit landed an order from the Tunisian rail operator SNCFT for a timetable management system that will be realized together with Siemens IT Solutions and Services.


Siemens IT Solutions and ServicesProgram and System Engineering (SIS PSE)


Sales (mn euros) 463.7 457.8 –1.3%

Employees 2,842 2,573 –9.5%

Program and System Engineering is the driving force behind research and development in Siemens Group Austria. PSE has been part of the newly founded Siemens IT Solutions and Services SIS since the beginning of 2007. This integration has opened up new possibilities for SIS PE to participate in the international business activities of Siemens AG Berlin/Munich.

With over 7,000 employees and more than twenty sites in ten countries, SIS PSE conducts central research and development work for Siemens AG Austria and for divisions in the parent company in Germany. More than half of these employees are now working at low-cost sites, whereby local compe-tence is playing an increasingly important role in projects alongside an optimal cost structure. The trend towards worldwide collaboration – Intelligent Net Working – is also continuing.

Business in the fiscal year was marked on the one hand by the transfer of the development team for SEN to the newly founded SEN subsidiary iSEC, and on the other by declining business volume in the traditionally strong telecommunications segment. This was offset for the most part by new activities in areas such as healthcare, industry, and power. A social plan had to be drawn up together with the Works Council to adapt personnel resources in areas where lost business could not be replaced.

Today, SIS PSE is the leader in the development and implementation of technologies for new applications in many business segments. Two examples are the DVB-H project completed with Austrian Broadcasting Corporation and other partners, and the Homeland Security Suite product family that was developed by the Biometrics Center.

Siemens Industrial Manufacturing, Engineering and Applications (SIMEA)


Sales (mn euros) 270.2 321.7 19.1%

Employees 717 894 24.7%

Siemens Industrial Manufacturing, Engineering and Applications (SIMEA) is Siemens AG Austria’s unit for the development and manufacture of electronic products and systems. SIMEA’s core competencies are development management, production, and logistics. The unit covers every aspect of a modern electronic factory’s value creation chain. Alongside SIS PSE, SIMEA is one of the core drivers of research and development within Siemens AG Austria.

Complex high-tech products are developed and manufactured at the plant in Vienna. The plant in Siegendorf, Burgenland, specializes in the highly automated manufacture of electronic control units for home appliances in large lots. A cost and process restructuring program was launched at the facility in


Siegendorf during the 2007 fiscal year. This project was completed successfully and has created a good basis for future business at the site. The plant that was founded in Sibiu, Romania, at the beginning of November 2005 is now fully integrated into the production group and also helps to secure the future growth of SIMEA through its good cost position. The merger and integration of the switch cabinet manufacturing activities at the Linz site into the SIMEA group was also brought to a successful conclusion.

Sales activities focused on the establishment of centers of competence for power plant exciter systems, automotive and lighting technology, and the adaptation of the I&C/TTI portfolio on the basis of a solution partnership with Siemens A&D, SBT, and MED.

The fiscal year was very satisfactory in terms of new orders and sales growth.

Key Subsidiaries of Siemens AG Austria and its Division Companies

Siemens VAI Metals Technologies (Siemens VAI)


Sales (mn euros) 1,712.7 1,575.8 –8.0%

Employees 2,920 3,064 4.9%

Siemens VAI Metals Technologies (Siemens VAI) is an internationally active company operating from Linz and offers its customers a complete range of technology and systems for all areas of metallurgy. Regardless of whether for iron and steel production, rolling and strip processing, electrical systems and automation, or for services, the company’s customers can count on receiving comprehensive, fully integrated solutions from a single source. Siemens VAI again capitalized on the very good conditions in the iron and steel industry during the fiscal year.

Siemens VAI again extended its lead on the global market and boosted its order intake and backlog in fiscal year 2007 (ended September 30). Of the new orders received, 30 percent each came from the regions Asia/Pacific and Europe, and 20 percent each from North/South America and the Middle East/Russia. Business with lifecycle services is being pushed aggressively to compensate for the expected consolidation on the market for new systems in the coming years, and will grow to account for roughly one third of total sales by 2010. Increasing demand for modernization work is expected to boost the share of electrotechnical equipment sales to around 30 percent by 2010 as well.

After the acquisition of VOEST-ALPINE Industrieanlagenbau, Siemens VAI restructured its operations with 7,500 employees and projects in over fifty countries in October 2006. The focuses of the two companies, iron and steelmaking and rolling and processing, were merged, and strip mining activities added to the portfolio. Now, the company can cover the entire production process from ore extraction all the way to iron and steel manufacture. The new unit Metals and Mining Services is responsible for all of the segments’ services and modernization projects worldwide. The objective of this new structure is to offer customers individual solutions on the basis of standard products and systems. Siemens VAI’s experience in planning, startup, and modernization and the largest number of installed systems of any company in the world form the ideal basis for business in process optimization and the provision of competitive production systems.


VAI landed a major order from the Brazilian steelmaker Gerdau Açominas for the construction of a continuous slab casting system and RH degassing system. After the planned startup of the new systems in December 2008, Gerdau will be able to produce roughly 1.5 million tons of high-quality flat steel stock per year.

The Mexican steelmaker Altos Hornos de México S.A. de C.V. (AHMSA) placed multiple orders with VAI for equipment for the expansion of its steel works and the modernization of its heavy plate rolling mill in Monclova. AHMSA plans to expand its production capacity from 500,000 metric tons to one million metric tons of heavy plate by the middle of 2009. Siemens VAI also supplied Wuhan Iron & Steel (Group) Co., Ltd. in China with the complete mechanical and electrical equipment for a new thick plate rolling plant. The plant, which will be able to produce plate up to 4,250 millimeters in width, is being built in Ezhou in the province of Hubei and will go online in August 2008.

Together with the Italian steelmaker Acciaieria Arvedi S.p.A. (Cremona), Siemens VAI is building the world’s first Arvedi ESP (endless strip production) system for the continuous production of steel bands from molten steel in an endless process. This project is an impressive demonstration of Siemens VAI’s high innovative strength.

Siemens Elin Buildings and Infrastructure (B&I)


Sales (mn euros) 271.4 229.6 –15.4%

Employees 1,074 957 –10.9%

After the integration of the industrial segments into Siemens AG Austria, Siemens Elin Buildings and Infrastructure Group (B&I) – formerly VA TECH ELIN EBG Group (EEE) – has only been responsible for the building project business portfolio since the beginning of fiscal year 2007. The company saw an excellent volume of new business thanks to the good economic conditions. However, overall business develop-ment is still being impacted by negative factors from before the takeover by Siemens.

The economic conditions are very good at present. There is a sufficient supply of investment capital, not only on the development markets SEE and Russia, but also on the company’s developed home market of Austria. A shortage of qualified personnel, especially technicians and project managers, is hampering business growth. This has been a particular problem for B&I after the integration into Siemens and final restructuring measures during the fiscal year caused a higher fluctuation rate.

The building construction market in Austria is growing satisfactorily, though at different rates from region to region. In Austria, B&I has remained the market leader for building electrical systems.

Sales activities in the economic region are focusing on Romania and Croatia, and on the further expansion of business in Russia and Ukraine. The largest projects in Austria are the construction of the new regional hospital in Klagenfurt and the construction of the new OMV headquarters. Both projects are currently underway.

B&I was commissioned with the delivery of the high and low voltage systems, the HVAC systems, the measurement and control systems, and the complete technical building systems for the West Gate Logistics Center in Kiev and the Rising Star Media cinema center in St. Petersburg.


Siemens Gebäudemanagement & -Services (SGS)


Sales (mn euros) 106.6 100.6 –5.6%

Employees 418 389 –6.9%

Business developed very well for SGS during the 2007 fiscal year. In the project segment, the SGS lifecycle model for the St. Pölten University of Applied Sciences was completed successfully and the building officially opened. SGS FM took over the operation and management of the school in June 2007 under a fifteen-year operating costs guarantee model. In the public lighting segment, key projects were won in Austria and the SEE region.

Business developed as follows in the individual segments:• Facility Management (FM) saw moderate growth and high price pressure in Austria. Demand for outsourcing and for complete projects is not as high as expected, and a clear trend

towards awarding contracts for individual subsystems is apparent. There is some interest in facility management agreements in SEE, but the market is at very different stages of development from region to region.

• In project business, there is increasing interest in and investor support for the lifecycle model in Austria, whereby long-term yield expectations and leasing models are becoming more important.

• Public Lighting saw interest from a small number of municipalities in Austria, while the countries in SEE expressed great interest and offer high market growth potential.

• Major orders included the construction and management project completed with Siemens Elin (B&I) in Cluj, Romania, the installation of public lighting in Most in the Czech Republic, and additional facility management agreements in Austria and in SEE.

Siemens Enterprise Communications (SEN)4


Sales (mn euros) 146.3 142.8 –2.4%

Employees 591 401 –32.1%

Siemens Enterprise Communications (SEN) is a group of thirteen companies in Austria and SEE that was created from the COM E division on December 22, 2006, and specializes in convergent voice and data communication solutions with a focus on mobility, security, IP and WLAN solutions, and on managed and professional services.

The restructuring measures that were implemented during the fiscal year significantly improved the company’s market position. Sales focused on the marketing of complete communications solutions on the basis of the HiPath product family and on the migration of conventional telephony solutions to IP infrastructures.

4) The figures for 2006 include parts of the service business of the former COM C.


The company again saw moderate market growth in Austria and above-average growth in the SEE region. Sales efforts focused on the introduction of the new product lines HiPath 8000, HiPath 2000, and BizIP.

In Austria, complete communication solutions were installed and started up for renowned major companies. These projects included the delivery of HiPath products, additional software products, call center solutions, branch connections using VoIP, and the installation of communication infrastructures to connect company units throughout the CEE economic area. The value creation chain covered design and planning, delivery, installation, and maintenance for the complete systems.

In the economic region, comparable solutions were realized for government ministries and banks in Romania, Bosnia and Herzegovina, and Bulgaria.

The research and development activities for the HiPath product family that were formerly completed by SIS PSE were transferred to the SEN subsidiary iSEC effective April 1, 2007. Sales activities for iSEC in its countries of operation Austria, Hungary, and the Czech Republic focused on customer service management, R&D outsourcing for external companies and R&D for the central SEN unit.

Siemens IT Solutions and Services (SIS CEE)5


Sales (mn euros) 484.5 477.9 –1.4%

Employees 2,450 2,419 –1.3%

When adjusted for the elimination of the former PRS business activities that were affected by the carve-out, new orders and sales in fiscal year 2007 grew nicely in year-on-year comparison.

Higher growth in the private sector made up for a stagnation in order intake from public sector clients caused by the postponement of projects such as the “finance redesign” project, but was not enough to bring stronger growth overall.

In spite of fierce competition for market share, the company was able to beat its outsourcing sales targets in the manufacturing, service industry, and service providers segments.

In 2007, the company’s operations were restructured according to business segments (verticals) in line with the new business model. Based on this new structure, all business units adopted an integrated approach for the entire economic region and laid an excellent basis for successful collaboration through-out the SEE region. A new organizational structure with a new value flow was also established that clearly separates delivery units and sales-oriented verticals. An international global operations organiza-tion that runs data centers at sites in Europe, Asia, and America was set up to provide wordwide service to globally active customers.

The establishment of the company Archivium together with the Austrian Bar Association and the creation of an innovative electronic archive solution for storing legal documents garnered a great deal of respect throughout Europe. Three public awards underscore the viability and practical benefits of the system, which was based in part on the successful CYBERDOC solution that was implemented for notary publics.

The largest projects currently underway are for Henkel Central Eastern Europe (SAP outsourcing), Kreditschutzverband von 1870, T-Mobile Austria GmbH, and Andritz AG (also SAP outsourcing).

5) Siemens IT Solutions and Services was integrated into Siemens AG Austria on October 1, 2007.


According to an IDC survey, SIS Austria successfully defended its position as the market leader in Austria for IT services during the fiscal year.

BFE Studio und Mediensysteme (BFE Mainz and Vienna)6


Sales (mn euros) 77.2 71.8 –7.0%

Employees 257 252 –1.9%

The core competency of BFE Studio und Mediensysteme (BFE) is the planning and realization of complete studio and media systems.

BFE bolstered its market position as a vendor-independent system builder in the 2007 fiscal year. This can especially be attributed to the company’s proactive approach to mastering the challenges presented by the increasing adoption of IT broadcasting technology.

The high order intake of €72.5 million underscores BFE’s position as the leading provider of studio and media systems. In addition to its home markets in Germany and Austria, BFE is also very active in the other countries of Western and Eastern Europe.

One of the largest projects completed during the fiscal year was the delivery of the technical studio systems for BBC in Glasgow. This order made BFE the new benchmark for BBC Scotland. Other major orders were completed for WDR, for Uzgos-Tele-Radio Uzbekistan (construction of regional studios and television studios), and for TVP Poland (twenty-camera high definition broadcast truck).

Another important foreign customer was won after the Italian broadcasting company RAI signed a contract for the delivery of two DSNG broadcast trucks. BFE Vienna delivered two television broadcast trucks to Austrian Broadcasting Corporation during the fiscal year.

Employees

Our employees and their abilities are a key asset, if not the most important asset of all, in the implementation of our business strategy. This is why Siemens invests continually in increasing these abilities on the basis of the specially developed Siemens competence model. Our development programs focus not only on the “traditional” management career path, but also offer special advancement opportu-nities for project managers, sales staff, and technical specialists. Employees are given the opportunity to expand their own know-how and to acquire “tools” to help them successfully master future challenges.

Another focus is talent management, which is designed to ensure a sufficient number of future managers, and also to provide high-potential employees with the means to realize their full potential in our Company. In addition to building up relevant expertise, a key component of this program is mobility so as to supply all units throughout the Central and Eastern European economic region with key personnel.

A structured performance management process was introduced during the 2007 fiscal year and will foster the establishment of a high-performance culture. An employee’s performance, skills, and potential are assessed and compared among his or her peers. The supervisors’ assessment and the results derived from this are used to identify appropriate development measures and also remuneration to fairly reward outstanding performance.

6) The following report covers both companies.


In spite of the in part difficult conditions, Siemens was able to maintain its excellent position on the labor market. Siemens achieved very high rankings in two independent European surveys, underscoring its highly positive reputation as an employer. Our University Liaison Management team works continu-ously to improve and reinforce this image through student programs, assistance with dissertations, and internships. The large number of candidates who apply for each of our internship positions shows that we are on the right path.

Promoting diversity has also always been a key element of our approach. Here, Siemens attaches particular importance to career advancement for women, offers concrete training measures that address the needs of older employees, and runs a special apprentice training program to empower persons with hearing disabilities. As proclaimed in our mission statement, we take our social responsibility seriously and demonstrate this commitment with concrete action every day.

Siemens AG Austria had a total of 7,928 employees in Austria as of September 30, 2007, of which 338 were apprentices.

Employees by function9/30/2007

Research and Development 2,875

Manufacturing 771

Installation, maintenance, and service 1,093

Sales 1,853

Central, service and administration 998

TOTAL Siemens AG Austria (without apprentices) 7,590

TOTAL Austria (without apprentices) 18,282

TOTAL Group Austria (without apprentices) 30,254

Research and Development

Just under 20 percent of all corporate research and development activity in Austria is conducted by Siemens, making it the most important technology company in the country. Siemens Austria also plays a leading role in research and development within the worldwide Siemens group, and is one of Siemens AG Berlin/Munich’s largest R&D sites with nearly 3,000 dedicated researchers and developers.

Examples of Siemens Austria’s pivotal research and development role include the world center of competence for passenger coaches in Vienna and Graz, the world headquarters for bogie development, manufacture, and sales in Graz, and the lead factory for regional rail vehicles, metros, and trams in Vienna.

The Siemens Biometrics Center in Graz, which conducts fundamental research and develops products that employ biometric methods for sale by Siemens around the world, is another internationally active center of competence. Experts predict that the global biometrics market will reach a volume of


$4.7 billion by 2009, and the total project volume associated with biometrics solutions is expected to be many times higher. The biometrics market grows by over 35 percent each year. Siemens set up a globally active biometrics center in Graz to optimally position itself for the impending boom in biometrics technology.

Research and Development Highlights in Fiscal Year 2007

Work at the Virtual Vehicle center of competence, which is funded in large part by the Austrian government because of the broad potential it offers, includes research by Siemens Transportation Systems and the Graz University of Technology into calculation and simulation methods for the develop-ment of new technologies, methods, and tools for the holistic optimization of road and rail vehicle systems. This work is extending Siemens’ established rail technology competence and is also creating synergies with research projects in the automobile industry and projects with other research partners.

In the area of innovative telematics systems, Siemens IT Solutions and Services offers entirely new possibilities for intelligent traffic control with its development work in car-to-car (C2C) and car-to-infrastructure (C2I) communication. Cars that have never come into contact before can exchange information to notify of dangers and enable drivers to take appropriate action.

In energy automation, Siemens Austria achieved a milestone in the realization of the smart power grids of the future with the development of the innovative Automated Metering and Information System (AMIS). The worldwide group’s center of competence for AMIS technology was established within Siemens Austria. AMIS is currently undergoing practical field testing by a team of approximately thirty at Energie AG Oberösterreich. Several practical tests have been conducted with this system since the middle of 2006 and have all been very successful.

Siemens VAI also makes a key contribution to the Company’s long-term business success with its successful innovative projects. The newly developed high-performance MEROS® gas cleaning system from Siemens VAI was put into operation successfully for the first time at the voestalpine Stahl sintering plant in Linz in August 2007. Extensive tests and analyses were completed on a pilot system operated in cooperation between Siemens VAI and voestalpine Stahl Linz to optimize the technology before it went into productive use. The MEROS® system significantly reduces the presence of undesired emission components in offgas. A 2,000 metric ton high-performance gas cleaning system efficiently removes fine dust and other detrimental components from a gas stream of 900,000 cubic meters per hour in a series of dry treatment steps.

The impressive result: a 90 percent reduction in fine dust emissions and a significantly lower level of sulfur dioxide. Nearly all organic pollutants and heavy metals are filtered out. The development work and practical tests in Linz are very important for Siemens VAI. Approximately 300 sintering plants are in operation around the world, which means that there is great potential for this ecologically forward-looking MEROS® technology.

Significant progress was made in the development of endless strip production (ESP) technology. This innovative combined casting/rolling process for flat steel products, which is being developed together with partner and lead customer Arvedi, allows highly efficient plants for band steel with roughly 45 percent less specific capital input, lower specific energy costs, and lower emissions.


Innovation Management

Siemens AG Austria has a special system for financing its innovations. Development work is generally paid for from the budget of the individual unit. Innovation projects with special importance for the site are financed in part by the innovation fund, which is endowed by the employees of Siemens AG Austria and by the Company itself. Capital in the amount of €4.9 million was provided from this source for the implementation of fourteen projects during the 2007 fiscal year.

Corporate Innovation Center (CIC)

The establishment of the company management function Corporate Innovation Center considerably enhanced the Company’s innovation framework. The Corporate Innovation Center has been responsible for all aspects of R&D and innovation at Siemens AG Austria since March 2006, from managing Siemens Austria’s strategic position in research, development, and innovation through expanding and maintaining the development and innovation role of the Austrian site and the financing of innovation work all the way to the structuring of an active portfolio of patents. And because innovation plays such a central and crucial role at Siemens AG Austria, the Corporate Innovation Center reports directly to the Chairwoman of the Managing Board.

Siemens Austria’s research and development activities expanded yet again in fiscal year 2007. In spite of the very high level reported in the 2006 fiscal year, the Company’s R&D output increased again in fiscal year 2007, and aggregate R&D spending totaled nearly €872 million, an improvement of over 14 percent compared to fiscal 2006.

Patents

In addition to intellectual capital and financing for research and development projects, there is a third factor without which innovations cannot be successfully brought to the market: the protection of intellectual property. Industrial property rights, especially patents and trademarks, are very important in modern business because they prevent competitors from copying a company’s innovations, and also allow innovators to generate revenue by means of licensing, for example. A comprehensive portfolio of industrial property rights is also a visible testament to a company’s technological and competitive strength.

Siemens Austria’s patent strategy focuses on protecting core developments and key technologies with patents and trademarks, whereby rights are secured on current and future markets. Professional manage-ment of the Company’s intellectual property and the enforcement of our property rights ensure a high degree of legal security, which also benefits our customers.

Siemens AG Austria registered 550 inventions and filed 200 patent applications in fiscal year 2007. The Company currently has a portfolio of roughly 5,000 patents and patent applications.


Opportunity and Risk Management

Siemens AG Austria attaches particular importance to opportunity and risk management. This involves the following tasks: • Maintenance of a comprehensive opportunity and risk management system at Siemens AG Austria,

its majority-owned subsidiaries, and the regional companies in SEE.• Design of the process for, the handling and verification of, and quality control for the quarterly

strategic opportunity and risk reports to be submitted by all reporting units to the parent company, as well as the organization of semiannual discussions of these reports between the division and company managers and central commercial management.

• The provision of practical support to the divisions for the implementation of an efficient opportunity and risk management system, especially in line with their operational activities and project processing.

All activities are completed in accordance with the Company’s guidelines and are subject to review by the financial auditor, the internal audit department, and IKS and SOA audits.Risk management does not focus on the avoidance of all risk, but on the identification of opportunities and risks so as to be able to manage them by means of suitable measures and to thereby maintain and broaden the Company’s latitude for action. Early identification and sustainability are two keys in ensuring that opportunities can be seized and risks prevented. For this reason, opportunities and risks are assessed accross a rolling time horizon of at least two fiscal years in all reporting.

The opportunities and risks pertinent to Siemens AG Austria are assessed in a matrix of ten risk categories:• Market and sector• Management• Technology and product development• Manufacturing and logistics• Strategy, marketing, and distribution• Organization/IT/corporate governance/external communication• Financing• Procurement• Personnel• Legal issues

Assessments are usually completed before and after measures are implemented and concentrate on the potential effects weighted according to probability to arrive at the so-called expected value. In projects, this value is relevant for the formation of provisions in accordance with the valid Siemens contract conclusion guidelines.

Strategic opportunities and risks are taken into account directly in the current forecast when they have a probability greater than 50 percent, and are included in the opportunities and risks reporting when they have a probability of less than 50 percent.

Each operating unit is responsible for the efficient management of the opportunities and risks involved in its business activities.


Quality Management

Siemens is highly respected in many fields and in many places around the world. The name Siemens stands for quality, increased competitive strength for our customers, for reliability, and – for our investors – social responsibility wherever we are active. This also means that we have the obligation to improve our strengths, to learn from our mistakes, and to correct our shortcomings.

Siemens AG Austria’s management system is oriented towards these principles, towards our custom-ers’ needs, and towards the needs of the market. It meets all the legal requirements, internationally valid standards, and technical rules. Our high commitment to quality enables us to develop and market products, systems, and services that optimally meet our customers’ needs. Siemens’ quality strategy focuses on three key pillars to ensure the viability of our management system over the long term: customer satisfaction, staff qualifications, and process management. Internal audits and assessments by independent external experts are also conducted at regular intervals to refine the management system.

Mandatory Elements – the Foundation of High Quality at Siemens

Siemens Quality Management goes beyond the internationally valid standards that are generally demanded by customers (such as ISO 9001), and its principles are continually adapted to meet the prevailing challenges on the global market. Siemens Quality Management sets out nine “mandatory elements,” benchmarks that were created from an international comparison of globally active quality leaders. The consistent application of these elements and their continued refinement are verified in regular internal system audits, whereby these audits take into account methodical elements such as quality requirements in processes and the management of customer demands, as well as quality management culture in our Company. Implementation is monitored as part of strategic controlling.

Personnel Qualifications

High quality results can only be guaranteed by quality managers with the necessary skills and abilities. The Siemens Quality Management training model provides comprehensive and internationally respected education for quality managers for line and project organizations.

Collaboration with PMA (Projektmanagement Austria), PMI (Projektmanagement International), and GPM (Gesellschaft für Prozessmanagement) and active involvement in key international quality manage-ment events such as the Austrian Quality Day in September 2007 are a reflection of the innovative spirit that Siemens applies to its quality management system.

Environmental Management

Siemens AG Austria’s environmental policy is based on the Company’s central responsibility towards people and the environment. Siemens’ officers enact clearly defined rules throughout the Company to ensure that this responsibility is fulfilled. Key objectives are the sparing use of our natural resources and reduced emissions in our air, soil, and water.

The products manufactured, used, and sold by Siemens are also subject to strict rules. An internal Siemens standard that is binding for all employees from development through purchasing and manufac-turing all the way to disposal at the end of a product’s life ensures that the Company acts in a sustainable manner.


Siemens AG Austria has over thirty active environmental officers throughout Austria to ensure that the needs of all of the sites in Vienna and the other provinces are met. The development and manufactur-ing units are required to follow not only the legal requirements, but also internal Company standards. This allows environmentally friendly measures to be adopted early and long-term changes to be made to products to this end. Examples of concrete measures include employee training, various environmental protection initiatives, strategically planned sparing use of natural resources in accordance with our environmental protection measures, and the introduction of environmental protection management systems such as ISO 14001.

Austria’s government has been working to enact environmental policy measures to reverse the greenhouse gas emission trend for many years. Siemens is a partner in these efforts and offers products, system components, services, and know-how in all segments that make key contributions to implement-ing this climate policy.

Procurement

Siemens Group Austria and its affiliated and associated companies offer a very broad spectrum of products and services. Maximum customer benefits are generated through the creation of highly capable decentralized organizational units with a clear focus on strategic core competencies. At the same time, this structure poses considerable challenges for group-wide procurement and supply chain management.

Global Procurement and Logistics (GPL) is a center of competence for purchasing and logistics and is responsible for these activities within Siemens AG Austria. As the central management unit for all issues of procurement, GPL has the power to enact guidelines to ensure compliance with existing legal require-ments and internal Siemens regulations for all of the Company’s purchasing agents. Global Procurement and Logistics regularly initiates and implements companywide programs to improve the Group procure-ment system and optimize all purchasing processes.

The procurement system within Siemens AG Austria is structured as a network that is in turn inte-grated into the worldwide Siemens procurement network. This Siemens procurement network allows the Company to leverage synergies generated by joint action while maintaining its principally decentralized structure at the same time. Orders for high-volume materials are combined and negotiated with vendors around the world on a group-wide basis, a practice that plays a major role in making and keeping Siemens’ business units highly competitive. In order to ensure that the greatest degree of ratio and synergy potential is realized as possible across all decentralized units and regions, all purchasing agents must work together closely and communicate efficiently with each other and with key vendors. The cross-divisional and supra-regional procurement platform Siemens Procurement Network Austria (SPNA) is a valuable tool in this effort. This purchasing platform offers all key modules for e-procurement and is fully integrated into the SAP enterprise resource management system. The system functions range from a strategic overview through materials and preferred suppliers all the way to operational catalog-based online ordering.

SPNA also plays a major role in the countries of the SEE region both for procurement itself and for the integration of these units into the worldwide Siemens procurement network under the Procurement Excellence program.

The key role that the strategic procurement of materials and services plays in reaching the Company’s performance goals in the CEE economic region is undisputed. Over 20 percent of the required outside products and services are already purchased from the Company units in the SEE countries, and this share is growing rapidly.


Siemens Austria purchased goods and services worth approximately €4.7 billion in fiscal year 2007. Of this, roughly €2.0 billion were procured from external partners, and 55 percent of this from Austria. Because of the broad spectrum of Siemens’ business activities, this purchasing volume entails contacts with over 16,000 vendors.

Investments

Siemens AG Austria invested €41.9 million in property, plant, and equipment during the fiscal year, 20 percent more than in fiscal 2006.

Investments were primarily made in the expansion and replacement of data and information processing equipment, equipment for manufacturing (in the SIMEA division), and the Company’s vehicle fleet.

The companies A Koda (Slovenia; Building Technologies segment) and FROSYS (Romania; Industrial Solutions and Services segment) were acquired by the respective local regional companies in line with the objective of strengthening Siemens’ competitive position in South Eastern Europe.

Financial Position

Siemens AG Austria’s financial position was significantly impacted by far-reaching changes in the product portfolio in the 2007 fiscal year as already discussed in more detail under “Business Development for Siemens AG Austria.”

The balance sheet total increased by €141.4 million in fiscal year 2007 compared to the prior year. On the assets side, this can be attributed primarily to increased receivables and other assets, especially advance payments made to internal vendors (€182.3 million), and increases in liquid assets in a broader sense (€26.6 million).

The increase in intangible assets under fixed assets (+€58.6 million) is the result of goodwill from the integration of the industrial operations of Siemens Elin Buildings and Infrastructure GmbH & Co (formerly VA TECH ELIN EBG GmbH & Co). The increase in unbilled contracts under inventories (+€62.8 million) was offset for the most part by advances received (+€53.3 million) and a reduction in advances to suppliers (–€7.9 million).

The shareholder’s equity increased roughly in the amount of the net surplus (€249.1 million), compensating for the net loss from the previous year (–€111.8 million) and resulting in a net profit of €150.0 million.

The reported accruals primarily cover project risks and employee claims (severance pay, pensions, vacation time, etc.). The changes in liabilities are related primarily to advances received.

The result on ordinary operations fell considerably to €192.6 million (2006: €275.1 million) as a result of the carve-out of the Communications activities.

Extraordinary effects resulting from the carve-out of the COM units in fiscal year 2007 and the formal integration of the VA TECH group in fiscal year 2006 are reported separately.


Key Financial Indicators

2006 2007

Equity ratio* 29.1% 34.5%

Working capital ratio** 58.4% 63.2%

Operative cash flow (in millions of euros) 413.4 200.7

Long-term assets cover ratio*** 67.9% 73.8%

***) Ratio of shareholder’s equity to the adjusted balance sheet total.***) Ratio of medium- and short-term assets to medium- and short-term loans.***) Ratio of own funds and long-term loans to long-term assets.

Derivative Financial Instruments

Siemens AG Austria only employed derivative financial instruments to hedge against currency risks. A cover ratio of 87 percent was achieved as of September 30, 2007.

The Economic Region

General

Siemens Austria currently bears operational responsibility for the countries Bosnia and Herzegovina, Bulgaria, Croatia, Montenegro, Romania, Serbia, Slovakia, and Slovenia. The figures for the region7 show that the economic upswing is continuing. The accession of Romania and Bulgaria to the EU has triggered additional positive growth impulses in these countries.

The countries in the region are profiting more and more from the robust economy in Western Europe and the resulting high export demand and, in the case of the SEE countries, strong inflows of foreign capital. The primary challenge still faced by most countries is striking a balance between domestic and foreign demand and maintaining a balanced current account.

Siemens CEE’s performance indicators in the region and market shares in the individual countries developed very satisfactorily.

In spite of the carve-out of the COM C unit at the beginning of the 2007 fiscal year, new orders and sales both increased by around 12 percent in the SEE countries compared to fiscal year 2006, primarily as a result of increased business conducted for the regional companies’ own direct customers.

Romania, Croatia, and Slovenia saw above-average order intake growth compared to the previous fiscal year, primarily in Transportation Systems (TS), Automation and Drives (A&D), and Medical Solutions (MED).

The number of employees in the regional companies declined by 428 to 2,5228 during the fiscal year, primarily as a result of the carve-out of the COM activities.

Siemens AG Austria operates branches in five countries.

7) The average growth rate for the countries of the economic region was 4.3 percent.8) Not including employees of division companies and other associates and affiliates in the individual countries.


Regional Companies

Siemens d.o.o., Sarajevo


Sales (mn euros) 81.3 42.7 –47.5%

Employees 97 57 –41.2%

Business development for the local regional company in Bosnia and Herzegovina was impacted significantly by the political conditions in the country, including the six-month delay in the formation of a government, and by the difficult economic policy conditions (delays in the privatization process, high inflation rate).

In spite of these difficulties, the regional company Siemens d.o.o. succeeded in fortifying its market position and boosting its order intake.

Power Generation took over turbine and generator maintenance at the country’s largest steel plant (Mittal Steel) and at the coal power plant in Tuzla. PTD was involved in the Power 3 Scada project and in the expansion of the Republika Srpska government building. A&D also won orders from Mittal Steel and from Agrana for the construction of a sugar factory. I&S completed a large number of municipal projects, including for a sewer treatment plant in Breza, traffic signal systems, and parking ticket machines. Business activities in this area are to be expanded in the future. SGS modernized the public lighting in Laktaši, and another lighting project is set to follow in Doboj. TS is delivering SATRA trams.

Siemens IT Solutions and Services implemented SAP for the power utility Elektroprivreda Mostar, the first project of its type in the country. SBT was involved in the expansion of the government building in Banja Luka.

Efforts in the future will focus on maintaining Medical Solutions’ high market share, among other things. Business in Power and Industry is also to be expanded.

Siemens EOOD, Sofia


Sales (mn euros) 141.1 119.8 –15.1%

Employees 321 242 –24.6%

The 2007 fiscal year was very positive for the regional company in Bulgaria. New orders adjusted for structural changes grew over twice as fast as the country’s GDP.

Bulgaria’s accession to the EU is just beginning to bring economic policy changes. Faster economic growth will not be possible to any great extent until the government begins tackling large infrastructure projects.

Business developed especially well for Power and Building Technologies last year. Now, a key focus is further improving Siemens’ position in the power sector. Plans for the significant expansion of the unit’s manufacturing plant in Botevgrad have been completed.


Automation and Drives also achieved excellent results and is now a market leader in the country. The opening of the EU’s structural fund for Bulgaria should also bring interesting new business opportunities for Industrial Solutions and Services, Transportation Systems, and Medical Solutions.

PTD is also implementing a large number of projects for the modernization of the country’s power grid. TS is working on the expansion of the metro system in Sofia.

Increased business at the Graphic Engineering Center Sofia (building automation), which has had the status of a full-fledged competence center since May 2007, significantly increased local value creation during the fiscal year. The carve-out of the communications units was also brought to a successful conclusion.

Increased focus will be placed on municipal projects in the future, including on the modernization of public lighting systems.

Siemens d.d., Zagreb


Sales (mn euros) 221.9 226.1 1.9%

Employees 1,402 1,312 –6.4%

Croatia is investing a great deal in attaining EU membership in 2009. To this end, broad structural reforms are currently underway. Foreign direct investment inflows are increasing rapidly, in part as a result of privatization activities.

The regional company grew at a rate nearly double that of the projected GDP growth rate, whereby business for the company’s own direct customers grew disproportionately (just under three times the GDP growth rate).

Siemens d.d. is the uncontested market leader in the PG, MED, and A&D segments and is also at the head of the markets for SBT products and parking solutions, among others.

A&D won a contract from the national petrochemicals company in the fiscal year that solidified its position in the process industry. Simatic PCS 7 was installed at DINA-Petrokemija, making the plant the most modern petrochemicals facility in this part of Europe. The industrial units are profiting from collaboration with JANAF (crude oil transport) on the modernization of the entire pipeline network in Croatia. Power Generation is working on projects at major power plants in Šoštanj and Zagreb.

Siemens IT Solutions and Services is one of the leading IT services providers in Croatia and a preferred partner for infrastructure projects. The pilot phase of the Schengen-compatible national border control system (NPMIS) was recently concluded.

Facility Management and Services celebrated the signing of a large contract that added a third major banking group to its client list. A central project for Building Technologies was the installation of a building automation system in the EuroTower Zagreb. Medical Solutions landed contracts with govern-ment-run and private clinics. A 3-Tesla MRT scanner was installed at the Zagreb neurological institute.

Siemens Croatia is following the general Siemens strategy and is focusing on global megatrends such as urbanization and demographic change. Pertinent individual solutions were drawn up for the cities of Zagreb and Split.


Siemens S.R.L., Bucharest


Sales (mn euros) 205.7 274.1 33.3%

Employees 257 246 –4.3%

Romania’s economy has continued to grow rapidly after its accession to the EU. Two main drivers of this growth are the privatization of state-owned companies and tax cuts. Access to the EU’s structural fund is also a source of positive impulses.

Siemens S.R.L.’s unbroken growth trend continued again during the 2007 fiscal year. New business opportunities were seized in Transportation, Power, and Industry, and the company is the number one or number two on the market in these segments.

FORTE BUSINESS SERVICES, a subsidiary of Siemens IT Solutions and Services, is assisting the federal government in its implementation of EU standards. The company works for the ministries of finance and justice, among other customers.

Industrial Solutions and Services acquired FROSYS S.R.L., a specialist for electrotechnical equipment and automation, in February 2007, thereby becoming one of the leading companies on Romania’s industrial market.

Key orders in Romania included contracts for the delivery of 100 Desiro trains and rail infrastructure to the national rail company.

Medical Solutions fortified its good market position by winning and completing additional projects for public- and private-sector customers. PTD modernized the Bucharest South transformer substation, which provides electricity for one third of Bucharest. Automation and Drives also bolstered its market position and expanded into new segments. The A&D plant in Sibiu manufactures products for the world market. Industrial Solutions and Services installed a sewage treatment plant in Constanţa harbor.

Electronic components are manufactured for customers such as BSH (Bosch Siemens Hausgeräte) in the SIMEA plant in Sibiu.

Siemens d.o.o., Belgrade / Podgorica9


Sales (mn euros) 105.4 65.3 –38.0%

Employees 226 112 –50.4%

The Serbian economy is still growing strong and creating good business conditions for Siemens d.o.o. The company saw disproportionate growth in business for its own direct customers in spite of the COM carve-out.

Medical Solutions installed a PET-CT scanner at the Institute for Oncology in Vojvodina. This is the first device of its kind in the Balkan region. The most important success in the power sector was the startup of two transformer substations that form the backbone of the power supply for Šumadija and the area along the Morava. A transformer substation is currently being built for the Belgrade power grid.

9) The following comments on the regional company still refer to the two countries Serbia and Montenegro.


A&D is enjoying continuous business growth. Two companies became the first Siemens Automation Solution Partners in Serbia.

The acquisition of ELPAS laid the foundation for the expansion of business for Building Technologies in Serbia. One of the first major orders was for a security system for the bank Raiffeisen (more than 100 branches) and the Delta City shopping center in Belgrade.

Transportation Systems won interesting infrastructure contracts and will be supplying equipment for the Belgrade tram system. I&S is building a city traffic control center in Belgrade and is also delivering technical systems for Strazevica Tunnel.

Tourism is one of the most important industries in Montenegro, which attained its independence in 2006. A comprehensive, optimally integrated hotel system consisting of the building automation infrastructure, electrotechnical equipment, safety, security, and fire protection systems, and the commu-nication system was installed for Hotel Splendid.

There is still considerable growth potential in the infrastructure and power segments because of the growth in the tourism industry.

Siemens s.r.o., Bratislava


Sales (mn euros) 212.4 169.9 –20.0%

Employees 550 444 –19.3%

High growth rates and falling unemployment are a testament to Slovakia’s continuing economic upswing. One of the key focuses for the country’s economy now is the adoption of the euro in 2009. Key growth segments are the automotive industry, infrastructure, the electronics industry, and the construction of new industrial parks.

Siemens further expanded its excellent market position in Slovakia during the fiscal year and is one of the largest investors and employers in the country.

Major orders fulfilled by Industrial Solutions and Services included electrotechnical equipment for a galvanizing line at US Steel and letter sorting systems for the Slovakian postal service.

Automation and Drives was very successful with orders in the rubber and tire manufacturing industries. Transportation Systems is supplying infrastructure for the rail line between Bratislava and Nové Mesto nad Váhom as part of a pilot project for ETCS technology. Medical Solutions delivered state-of-the-art medical equipment to private and publicly operated cardiology facilities.

Facility Management modernized the public lighting in the cities of Bardejov, Trenčín, and Žilina. Building Technologies provided the technical building systems for the City Business Center. PTD contin-ued the reconstruction of the transformer substation in Lemesany.

Siemens IT Solutions and Services is one of the three largest providers of information technology systems in Slovakia and supplied computer workstations to the ministry of the interior and implemented SAP at the universities, among other projects. SIPRIN s.r.o. was successful in the engineering of solution concepts for industrial automation. The largest order that is currently being fulfilled is for the Bratislava water supply system.

In the future, value creating activities for metals and mining, power, automation, rail infrastructure, and public lighting are to be expanded further in the existing centers of competence.


Siemens d.o.o., Ljubljana


Sales (mn euros) 87.0 130.8 50.3%

Employees 99 116 17.2%

The Slovenian economy again grew nicely at a rate of 7.2 percent. This trend also had a positive effect on the regional company Siemens d.o.o. All operational targets were met in spite of the postpone-ment of some major projects.

Automation and Drives again enjoyed very good business in the country in 2007, whereby Simatic was again one of the keys to this success. Sales are now also increasing for process automation and low voltage systems.

I&S completed a project at the Acroni steelworks. Power Generation completed the modernization of Block 5 of the thermal power plant in Šoštanj, including the delivery of two gas turbines, on schedule. Medical Solutions delivered the first 3-Tesla MRT scanner to the Ljubljana clinical center. To keep pace with the growth of the market, the division is collaborating with Siemens IT Solutions and Services to offer healthcare solutions.

Transportation Systems is a market leader for signaling and control systems. After twenty electric locomotives were delivered to Slovenian Railways, another order was placed for twelve more.

SBT increased its business significantly through the integration of A Koda. Now, SBT is the largest of all Siemens units in Slovenia and is one of the leading providers of fire protection systems in the country. The unit also focused on end-to-end technical building management projects. Large orders included work for Casino Šentilj, a main warehouse for the supermarket chain Hofer, Hotel Palace, and the branches of NLB-Bank.

Siemens now plans to tap the market potential offered by its full product and service portfolio using competent local teams and with a special focus on services and solutions. Sales in the new fiscal year will focus on the TS and PG segments.

Proposal for the Appropriation of Profits

The Managing Board of Siemens AG Austria proposes the distribution of a dividend in the amount of €150 million.

The Managing Board also proposes that the remaining net profit after the dividend disbursement be carried forward to next year’s balance sheet.


Outlook for Fiscal Year 2008

Fiscal year 2008 is expected to bring continued good economic conditions and a positive business climate for Siemens AG in Austria and the SEE region.

A framework plan was adopted for the years 2008 to 2011 as part of the SucCEEd growth program to strengthen the Company’s market position in the CEE economic region. The consistent attainment of the objectives outlined in this plan will be a key focus in the 2008 fiscal year. This is also expected to bring further increases in business volume and earnings for the year throughout the CEE economic region.

The growth targets for the countries in South Eastern Europe will make it necessary to significantly increase the number of employees in the region and to further improve their qualifications. Correspond-ing programs for employee retention and employee recruiting are being initiated as part of SuCEEd.

Siemens IT Solutions GmbH & Co was integrated into Siemens AG Austria at the beginning of the 2008 fiscal year. Comparable business activities will also be integrated into the respective local regional companies in South Eastern Europe over the course of fiscal year 2008.

We will be continuing our ambitious growth program throughout the economic region.

Events after the Balance Sheet Date

A resolution on far-reaching changes to the structure of the Siemens Group is to be adopted at the meeting of the Supervisory Board of Siemens Aktiengesellschaft Berlin/Munich on November 28, 2007. The implementation of these changes is to start on January 1, 2008.

A key element of these changes will be the restructuring of all business activities into the three sectors Energy, Industry, and Healthcare.

Vienna, November 15, 2007 For the Managing Board

Brigitte EdererChairwoman

92 Siemens Group Austria

One of the key events in fiscal year 2007 was the transfer of the Communications Carrier unit (COM C) into the joint venture with Nokia. For this worldwide transaction, the COM C unit was carved out of the Siemens Group and transferred to Nokia Siemens Networks, a global joint venture owned 50 percent by Siemens and 50 percent by Nokia.

In Austria, the COM C unit and all of this unit’s associates were spun off of Siemens AG Austria into a separate subsidiary that was subsequently sold to Nokia Siemens Networks Holding GmbH, Vienna, effective April 1, 2007. The COM C activities were also carved out of the regional companies in the SEE countries managed by Siemens AG Austria (Bosnia and Herzegovina, Bulgaria, Romania, Serbia, Slovakia, and Slovenia) and sold to Nokia Siemens Networks.

The Communications Enterprise unit (COM E) was also spun off of Siemens AG Austria to form Siemens Enterprise Communications GmbH, Vienna. The COM E activities were also carved out of the regional companies in the SEE countries managed by Siemens AG Austria (Bosnia and Herzegovina, Bulgaria, Croatia, Romania, Serbia, Slovakia, and Slovenia) and transferred to subsidiaries of Siemens Enterprise Communications GmbH, Vienna.

Parts of the software activities of Siemens AG Austria (Program and System Engineering PSE) were also transferred to iSEC – IT Services and Enterprise Communications GmbH, Vienna, in connection with the worldwide carve-out of COM E. Companies were founded in the Czech Republic and Hungary and the COM E operations of PSE in each country transferred to the respective company.

A&D acquired ETM professional control GmbH, Eisenstadt, in fiscal year 2007. ETM specializes in process visualization for infrastructure projects and has 86 employees. The company Flender was integrated into Siemens AG Austria during the fiscal year.

FROSYS S.R.L., which is domiciled in Cluj-Napoca, was acquired in March 2007 as part of the continuing development of business in the South Eastern Europe (SEE) region. FROSYS S.R.L., a competi-tor and partner to Siemens in Romania for many years, is a medium-sized company with more than 100 employees.

In the Medical segment, Bayer’s worldwide diagnostics activities were acquired and the Austrian activities integrated into Siemens Medical Solutions Diagnostics GmbH, Vienna. Siemens AG Austria increased its stake in ITH icoserve technology for healthcare GmbH, Innsbruck, (formerly ITH Information Technologies for Healthcare) from 52 percent to 69.1 percent.

Siemens IT Solutions and Services (formerly Siemens Business Services) is currently being integrated into the regional companies around the world. Siemens IT Solutions and Services GmbH & Co KG, Vienna, has already been integrated into Siemens AG Austria. This integration will be completed in the SEE countries over the next two fiscal years. Siemens AG Austria acquired 30 percent of ANF DATA spol. s r.o., Prague, in the 2007 fiscal year, thereby increasing its stake to 100 percent.

The transformer plants in Linz and Weiz (VA TECH EBG Transformatoren GmbH & Co KG and VA TECH Elin Transformatoren GmbH & Co KG) were merged to form Siemens Transformers Austria GmbH & Co KG at the end of September 2007.

Siemens Group AustriaChanges in the Consolidated Group

93Siemens Group Austria

* The business figures of these companies are not reported together with those of Siemens AG Austria as “Siemens Group Austria” in this annual report.

() Share in parenthesis: Siemens AG Austria does not hold a direct or indirect stake in these companies.

N: Nominal capital in millions of monetary units.


ETM professional control GmbH, Eisenstadt, Austria (100.00%) N: EUR 0.035

FROSYS S.R.L., Cluj-Napoca, Romania 100.00% N: RON 0.036

Hochquellstrom-Vertriebs GmbH, Vienna, Austria 100.00% N: EUR 0.035

Pfrimer & Mösslacher Heizung, Lüftung, Sanitär GmbH & Co, Klagenfurt, Austria 100.00% N: EUR 0.075

RIGENS SIA, Riga, Latvia* 100.00% N: LVL 0.322

Siemens Bacon GmbH & Co KG, Vienna, Austria 50.00% N: EUR 1.000

Siemens Elin Buildings & Infrastructure GmbH & Co, Linz, Austria 100.00% N: EUR 14.600

Siemens ELIN d.o.o., Zagreb, Croatia 100.00% N: HRK 0.370

Siemens Elin Haustechnik GmbH & Co, Linz, Austria 100.00% N: EUR 1.599

Siemens Gebäudemanagement & -Services G.m.b.H., Vienna, Austria 100.00% N: EUR 0.074

Siemens Industrial Services GmbH, Vienna, Austria 100.00% N: EUR 0.037

Siemens VAI Metals Technologies GmbH & Co, Linz, Austria 100.00% N: EUR 73.000

Siemens VAI Metals Technologies GmbH, Willstätt-Legelshurst, Germany 100.00% N: EUR 3.047

Siemens VAI Metals Technologies Limited, Christchurch, Great Britain 100.00% N: GBP 55.000

Siemens VAI Metals Technologies S.A., Guecho, Spain 100.00% N: EUR 1.803

Siemens VAI Metals Technologies S.r.l., Castellanza, Italy 100.00% N: EUR 4.282

Siemens VAI Metals Technologies SAS, Saint Chamond, France 100.00% N: EUR 5.000

SIPRIN s.r.o., Bratislava, Slovakia 100.00% N: SKK 2.000

VA TECH ELIN EBG VECO Kft., Törökbálint, Hungary 100.00% N: HUF 26.000

VA TECH WABAG GmbH, Vienna, Austria 100.00% N: EUR 1.000

Power

Leitungsbau Gesellschaft m.b.H., Linz, Austria* 50.00% N: EUR 0.036

Siemens Power Generation Anlagentechnik GmbH, Vienna, Austria (100.00%) N: EUR 0.035

Siemens Protection Devices Limited, Frimley, Great Britain 100.00% N: GBP 6.290

Siemens Transformadores, S.A. de C.V., Guantajuato, Mexiko 100.00% N: MXN 28.107

Siemens Transformers Austria GmbH & Co KG, Vienna, Austria 100.00% N: EUR 2.500

Siemens Transmission & Distribution Limited, Frimley, Great Britain 100.00% N: GBP 68.000

Siemens Transmission & Distribution SA, Grenoble, France 100.00% N: EUR 16.040

Trench Austria GmbH, Leonding, Austria (100.00%) N: EUR 2.907

VA TECH Elin Transformer Guangzhou Co. Ltd., Guangzhou, People’s Republic of China 63.00% N: USD 22.726

VA TECH Transmission & Distribution GmbH & Co KEG, Vienna, Austria 100.00% N: EUR 5.000


94 Siemens Group Austria

Medical

ITH icoserve technology for healthcare GmbH, Innsbruck, Austria 69.10% N: EUR 0.727

Siemens Health Management GmbH, Klagenfurt, Austria 100.00% N: EUR 0.037

Siemens Medical Solutions Diagnostics GmbH, Vienna, Austria (100.00%) N: EUR 0.035

Steiermärkische Medizinarchiv GesmbH, Graz, Austria 52.00% N: EUR 0.150

Transportation

ELIN EBG Traction GmbH, Vienna, Austria 100.00% N: EUR 0.750

Siemens Transportation Systems GmbH & Co KG, Vienna, Austria (100.00%) N: EUR 9.778

Siemens VDO Automotive GmbH, Vienna, Austria (100.00%) N: EUR 0.070

SV Trading GmbH, Vienna, Austria (100.00%) N: EUR 0.291


addIT Dienstleistungen GmbH & Co KG, Klagenfurt, Austria 100.00% N: EUR 0.040

Arbeitsmarktservice BetriebsgmbH & Co KG, Vienna, Austria 60.00% N: EUR 2.250

Archivium Dokumentenarchiv Gesellschaft m.b.H., Vienna, Austria* 50.00% N: EUR 0.400

CYBERDOC Gesellschaft für Digitale Kommunikation im Notariat GmbH & Co KG, Vienna, Austria 49.97% N: EUR 0.035

FORTE BuSINESS SERVICES S.R.L., Bucharest, Romania 100.00% N: RON 2.001

iSEC – IT Services and Enterprise Communications GmbH, Vienna, Austria 100.00% N: EUR 0.035

iSEC – IT Services and Enterprise Communications Kft., Budapest, Hungary 100.00% N: HUF 3.000

iSEC – IT Services and Enterprise Communications s.r.o., Brno, Czech Republic 100.00% N: CZK 0.200

ringo Kommunikationsdienstleistungs GmbH & Co OHG, Hollabrunn, Austria 100.00% N: EUR 1.000

SIEMENS COMMuNICATIONS d.o.o., Sarajevo, Bosnia and Herzegovina 100.00% N: BAM 0.002

Siemens Enterprise Communications a.s., Bratislava, Slovakia* 100.00% N: SKK 32.000

Siemens Enterprise Communications d.o.o., Ljubljana, Slovenia 100.00% N: SIT 2.100

Siemens Enterprise Communications d.o.o., Zagreb, Croatia 100.00% N: HRK 2.853

SIEMENS ENTERPRISE COMMuNICATIONS DOO BEOGRAD, Belgrade, Serbia 100.00% N: EUR 0.335

SIEMENS ENTERPRISE COMMuNICATIONS EOOD, Sofia, Bulgaria 100.00% N: BGN 1.218

Siemens Enterprise Communications GmbH, Vienna, Austria 100.00% N: EUR 0.035

Siemens Enterprise Communications Services GmbH, Vienna, Austria 100.00% N: EUR 0.091

SIEMENS ENTERPRISE COMMuNICATIONS S.R.L., Bucharest, Romania 100.00% N: RON 0.033

Siemens Home and Office Communication Devices GmbH, Vienna, Austria 100.00% N: EUR 0.035

SIEMENS IT SOLuTIONS AND SERVICES D.O.O. BEOGRAD, Belgrade, Serbia 100.00% N: CSD 39.785

Siemens IT Solutions and Services EOOD, Sofia, Bulgaria 100.00% N: BGN 0.005

Siemens IT Solutions and Services s.r.o., Bratislava, Slovakia 100.00% N: SKK 65.510

smart technologies Management Beratungs- u. Beteiligungsgesellschaft m.b.H., Vienna, Austria 74.00% N: EUR 0.219

Together Internet Services GmbH, Vienna, Austria 100.00% N: EUR 0.100

TOSCA Telekommunikationsdienstleistungen GmbH, Vienna, Austria* 100.00% N: EUR 0.037

TSG EDV-Terminal-Service Ges.m.b.H., Vienna, Austria 99.23% N: EUR 0.036

unit-IT Dienstleistungs GmbH & Co KG, Pasching, Austria 74.90% N: EUR 1.600

95Siemens Group Austria


ANF DATA spol. s r.o., Prague, Czech Republic 100.00% N: CZK 4.800

Siemens Program and System Engineering (Nanjing) Co. Ltd., Nanjing, People’s Republic of China (100.00%) N: USD 4.100

Siemens Program and System Engineering S.R.L., Brasov, Romania 100.00% N: RON 0.005

Siemens Program and System Engineering s.r.o., Bratislava, Slovakia 98.25% N: SKK 15.200

Siemens Programm- und Systementwicklung GmbH & Co KG, Hamburg, Germany 100.00% N: EUR 2.045

Siemens PSE Program- és Rendszerfejlesztö Kft., Budapest, Hungary 100.00% N: HUF 51.000


MWW Metallbearbeitungs-GmbH & Co KG, Vienna, Austria 100.00% N: EUR 0.035

SIMEA Gesellschaft zur Fertigung elektronischer Komponenten GmbH & Co KG, Siegendorf, Austria

100.00% N: EUR 5.035

SIMEA SIBIu S.R.L., Sibiu, Romania 100.00% N: RON 14.240

Studio and Media Systems

BFE Studio und Medien Systeme GmbH, Mainz, Germany 100.00% N: EUR 5.650

BFE Studio und Medien Systeme GmbH, Vienna, Austria 100.00% N: EUR 0.510

Financing

FSG Financial Services GmbH, Vienna, Austria 100.00% N: EUR 0.074

INNOVEST Kapitalanlage AG, Vienna, Austria 100.00% N: EUR 0.146

PBV Informationsdienstleistungs GmbH, Vienna, Austria 100.00% N: EUR 0.035

Siemens Leasing GmbH, Vienna, Austria (100.00%) N: EUR 0.037

Siemens Mitarbeitervorsorgekasse AG, Vienna, Austria 100.00% N: EUR 1.500

Siemens Pension Data Services and Consulting GmbH, Vienna, Austria 100.00% N: EUR 0.035

Siemens Pensionskasse AG, Vienna, Austria 100.00% N: EUR 3.650

Siemens Personaldienstleistungen GmbH & Co KG, Vienna, Austria 100.00% N: EUR 0.037

Regions

Siemens d.d., Zagreb, Croatia 98.33% N: HRK 94.591

Siemens d.o.o., Belgrade, Serbia 100.00% N: EUR 1.914

Siemens d.o.o., Ljubljana, Slovenia 100.00% N: EUR 1.961

Siemens d.o.o., Podgorica, Montenegro 100.00% N: EUR 0.005

Siemens d.o.o., Sarajevo, Bosnia and Herzegovina 100.00% N: BAM 1.473

Siemens EOOD, Sofia, Bulgaria 100.00% N: BGN 0.788

Siemens S.R.L., Bucharest, Romania 100.00% N: RON 0.169

Siemens s.r.o., Bratislava, Slovakia 100.00% N: SKK 409.000

Other Affiliates

OSRAM GmbH, Vienna, Austria (100.00%) N: EUR 0.400

* The business figures of these companies are not reported together with those of Siemens AG Austria as “Siemens Group Austria” in this annual report.

() Share in parenthesis: Siemens AG Austria does not hold a direct or indirect stake in these companies.

N: Nominal capital in millions of monetary units.


96 Corporate Responsibility

Corporate responsibility needs a plan, this is the only way that social responsibility can result in more value – or potentially even more values. That’s why we hold to fundamental principles in our corporate responsibility and base our social commitment on core values such as responsibility, excellence, and innovation.

A system of strategic success factors is applied to all of Siemens Austria’s corporate responsibility projects. We want to bring our strengths, above all innovation, into our projects. We want to transport the spirit of our Company, we want to shape and make an impact, and generally develop the specific measures ourselves.

Technology forms the basis for our socially responsible action. It is our core competency. And we make frequent use of technology as a transfer medium to eliminate barriers and create focal events. A common element in many of our initiatives is fostering future talent.

Our art and culture projects are examples of how such efforts can look in practice.

Siemens is a main sponsor of the Salzburg Festival, one of the most important cultural events in the world and a venue where people from many nations come together. Some performances would not be possible without the support of companies like Siemens. But Siemens does not limit its support to sponsoring alone. We also show opera productions on Kapitelplatz in Salz-

Our technological innovations have always been the greatest things we have to offer. The pointer telegraph of yesteryear or today’s most modern imaging systems do more good for society than donations and social projects ever could. According to Werner von Siemens, the pur-pose of inventions is to “fill an existing problematic gap,” and inventions were “the cause for the rapid blossoming” of the company. Today, we would call this a win-win situa-tion. Corporate responsibility is in our Company’s genes.

Siemens is now an integrated technology group that combines visionary thinking with practical action. We work to earn the trust of our customers and our society every day. And we have a vision of a world of tomorrow, shaped by people and made easier through technology.

The following section discusses how Siemens Austria lives up to its corporate responsibility in its various areas of business. As a result, some information here may be duplicated elsewhere in this Annual Report.

Corporate Responsibility StrategyFor Siemens, corporate responsibility means accept-

ing responsibility for society, the environment, and all of its business dealings. This is something different from the more common concept of corporate social responsi-bility that is espoused around the world – we take a broader view of our duty.

Siemens’ commitment to corporate responsibility stretches back practically to the company’s founding 160 years ago. Numerous quotes illustrating how our company founder understood corporate responsibility can be gleaned from his speeches and letters. “The money would burn in my hand like a glowing piece of iron if I did not give my workers their due,” said Werner von Siemens, explaining his relationship with his employees. Siemens established a pension fund in 1872, just a few years before it opened its branch in Austria. Another time, Werner von Siemens spoke of a company that would not only ensure his secure financial future, but also that of his descendants. Today, several hundred thousand employees belong to this family in an extended sense.

Corporate Responsibility (CR)

97Corporate Responsibility

burg during our Siemens Festival>Nights. We use our technical know-how to enable persons who cannot afford tickets or who are held back by inhibitions to access these cultural productions. These free, publicly accessible presentations attracted 40,000 viewers from Austria and abroad in the fiscal year.

Our Company also created the first Internet gallery in Austria, Siemens_artLab, using technology to present art to a broader public. Siemens provides young artists with a venue, and connects art lovers with the creators of art.

We conduct our corporate responsibility projects in other areas according to the same strategic principles. During the children’s matinees at the Siemens Forum, the adults of tomorrow learn the basic principles of physics by conducting experiments and tinkering togeth-er and learn to understand technology in a fun way. Skilled teachers and artists show how sound works, for example – just playing music would not be enough. In this way, we want to instill an interest in technology and foster budding talent.

Another area where we apply our strategic success factors is as a technology partner of the Austrian Football Association and the Austrian Ski Federation. Siemens provides technical solutions for training, and focuses equally on the development of the star athletes of today and tomorrow.

Corporate Responsibility Management Brigitte Ederer, Chairwoman of the Managing Board,

is the Company’s chief corporate responsibility officer. The sole responsibility of the Corporate Responsibility depart-ment is the management of all corporate responsibility activities in the CEE economic region. It advises and assists the divisions, corporate offices, subsidiaries, and regional companies with the strategic orientation, planning, and implementation of specific corporate responsibility activi-ties and disseminates information on Siemens’ corporate responsibility activities in Central and Eastern Europe.

The department is the central hub for all aspects of corporate responsibility. It dictates the strategic corporate responsibility framework, coordinates the projects and activities, and ensures that the corporate responsibility objectives are defined and attained together. It also documents best practices and disseminates information on them within the Company and to external parties. All of these activities serve to promote and improve the awareness for corporate responsibility within the Company.

Corporate Responsibility ReportingThis section of the Annual Report offers an overview

of our wide spectrum of corporate responsibility activi-ties. Siemens believes that corporate responsibility must be an integral part of its corporate strategy. By reporting on corporate responsibility in our Annual Report, we also want to send a clear signal that corporate responsibility and operational success are inseparable.

We have also considerably increased the scope of information provided on our corporate responsibility activities beyond the Annual Report. In March 2007, we launched a dedicated web site that provides an overview of Siemens’ complete corporate responsibility policy (www.siemens.at/cr).

We have also been operating a web site for some time that showcases our cultural projects (www.siemens.at/kultur). The extensive Siemens Festival>Nights pro-gram is presented at www.festspielnaechte.at. And the artists who exhibit in our galleries are given the opportu-nity to display their works at www.artLab.at.

Another web site presents our activities to promote the development of the star athletes of tomorrow and our sports sponsoring activities (www.siemens.at/sports). The diverse program of events held at the Siemens Forum Vienna can also be viewed in detail (www.siemens.at/forum, www.academyoflife.at). Our magazine hi!tech is designed to present modern technology in a generally understandable way.

Our employee magazine together contains regular reports on various aspects of corporate responsibility. together.online was awarded the Silver Quill from the communication association Verband für integrierte Kommunikation this year.

The interactive portal Together, the Siemens Community brings employees together on the intranet and extranet and provides daily reports on cultural, sports, and social sponsoring activities. The community also offers a platform for employees who are involved in social projects in their free time (“hidden heroes”).

A Siemens Seniors Internet portal with discussion forums was set up to maintain contact with all employ-ees who have entered retirement. Some 1,200 retirees had passwords to access the platform at the end of the fiscal year. This site was also awarded the Silver Quill this year.


Economic Responsibility

Corporate responsibility also needs business success. Otherwise, corporate responsibility will be short-lived.

We are proud of our business achievements. This success protects jobs and ensures the continued exist-ence of our Company sites. It lays the foundation for corporate responsibility, just as living up to our corporate responsibility creates the basis for our business success.

We have thousands of employees in research and development. Siemens provides top-notch vocational training and a wide variety of career opportunities in Austria and abroad. We invest in our sites, expand, ex-port, and invent. We provide cities with power-efficient lights and manage traffic with state-of-the-art electronic systems. Our trams, trains, and metro vehicles are envi-ronmentally friendly and are the backbone of numerous public transportation systems. Biometric solutions from Siemens make the world a safer place. We develop prod-ucts for the space industry, and are Austria’s largest technology company. As the Austrian business magazine trend put it recently, “A crisis at Siemens would be bad for the entire country.”

Business performance is the central topic of every Annual Report. For this reason, this section only includes information on selected corporate responsibility topics.

Sustainability in the Supply ChainOur corporate responsibility extends to our supply

chain. Siemens Austria purchased goods and services worth approximately €4.7 billion over the past fiscal year. Of this, approximately €2 billion were procured from external partners, and 55 percent of this from vendors in Austria. These purchases entail contact with over 16,000 suppliers in Austria.

Our principles for sustainable procurement are laid down in our Corporate Procurement Policy and our Business Conduct Guidelines. All business partners are selected on the basis of high ethical and legal standards. Among other things, the central purchasing department screens vendors to determine whether or not they have been sanctioned for violations of European or American export laws.

As a responsible company, we not only take account of economic aspects, but also ecological and social factors in our actions. We require that our vendors agree to be bound by our code of conduct. We want to effec-

tively apply our corporate responsibility principles in our supply chain, and stepped up our efforts to achieve this during the 2007 fiscal year.

Our vendors must commit to the following, among other things:• Compliance with all laws• A prohibition against corruption and bribery • Respect for the fundamental rights of their employees• A prohibition against child labor• Ensuring the health and safety of their employees• Environmental protection• The supply chain standards

Our code of conduct is an integral part of all supply contracts, and self-assessments and vendor assessments are used to monitor compliance with this code. If neces-sary, we provide our vendors with advice and work out concrete improvement measures. Audits make it possible to assess compliance with the sustainability require-ments in detail.

ComplianceThe requirements for compliance with legal and

ethical standards were expanded and fundamentally revised in fiscal year 2007. We restructured our internal compliance organization and enacted a broad range of new, stricter regulations. These stringent measures are intended to ensure that all employees act within the bounds of the law.

Among other things, our compliance program in-cludes our Business Conduct Guidelines. Our managers and all employees authorized to act on behalf of the Company must confirm their knowledge and acceptance of these guidelines regularly. In order to prevent the abuse of consultancy contracts, guidelines are also in force governing interaction with company consultants, and consulting contracts are subject to stringent approval procedures.

Peter Korczak stepped down as the regional compli-ance officer at the end of the fiscal year. Erwin Ackerl was appointed as his successor.

Intellectual AssetsOne of our most important assets is the applied

knowledge, ideas, and inventions of our employees. In consideration of this fact, suggestions for improvement


are a fixed element of our corporate philosophy. Siemens has much to gain from motivating all employees to contribute their ideas and enabling them to identify with the Company. Bonuses are paid for suggestions that are implemented.

Siemens employees submitted nearly 3,000 sugges-tions for improvement over the 2007 fiscal year, and roughly 60 percent of them were implemented. The monetary value of these ideas amounted to €6.3 million, and the Company paid €524,000 to employees who made suggestions that were implemented.

Responsibility for Environmental Protection

Siemens has been bound by strict environmental protec-tion regulations that go above and beyond the legal requirements for many years. In addition to ISO stand-ards, group-wide guidelines are also in place to ensure that our resources are used as wisely as possible.

Waste separation, industrial water use, and water reducers are a matter of course. We always buy the most economical and environmentally friendly vehicles for our fleet. Control loops are used in many places to automati-cally regulate light, air conditioning, and heating in

accordance with the actual requirements. We also pro-vide our employees with regular training in environmen-tal protection issues, and have done so for many years.

Energy conservation is gaining in importance, and Siemens can make a key contribution to protecting the environment. The Managing Board established a focus group during the fiscal year in which the employees working with energy-related topics develop concrete innovations. The first results of this work are expected in fiscal year 2008.

Many systems from Siemens make a contribution to cutting harmful emissions, as can be seen in the follow-ing examples.

Technical building systems can significantly cut energy consumption in a short time. Boilers, motors, pumps, and ventilation systems account for roughly 40 percent of the energy consumed around the world. Siemens Austria implemented energy saving measures in roughly 170 buildings, most of them schools, after submitting winning bids. The method applied by Siemens for this is called energy savings contracting: Consumption-cutting measures bring about cost savings, which are in turn used to finance the modernization of the technical systems.

Siemens not only assumes responsibility for the tech-nical aspects, it also encourages the system’s users to

Some 85,000 students, teachers, and civil servants participated in the ENOA project. All were encouraged to save energy and to create ENergy OAses.


make the most of the available resources. Over 85,000 students, teachers, and civil servants have participated in the ENOA project to date. The goal of the project is to create ENergy OAses, and the participants are motivated to participate and save energy by means of workshops, competitions, school projects, and the web site www.enoa.at.

The results are impressive, as can be seen at HTL Mödling, for example. The school cut its energy con-sumption by the amount needed to heat thirty single-family homes after installing an exhaust gas heat ex-changer. The energy oases created in the project save roughly 7,000 metric tons of carbon dioxide emissions per year.

The modernization of technical systems at indoor pools can also considerably cut resource consumption, as the following projects show. The operating costs at Jörgerbad in Vienna were cut roughly in half in Septem-ber 2006 after the installation of new technical equip-ment and automation systems. Gas and water consump-tion were also halved at the city’s indoor pool in Döbling after the technical systems were modernized.

Siemens has equipped roughly fifty refuge huts in sensitive areas with wastewater treatment and power equipment over the past years. The latest project of this kind was completed at the Adlersruhe hut on Großglock-ner and entailed the installation of a power and heating cogeneration plant, a photovoltaics system, a water supply, and solar power.

We regularly win awards for our commitment to improving the protection of our environment. The envi-ronmental minister Joseph Pröll and the Lower Austrian provincial minister for the environment Josef Plank presented us with an award for our environmentally friendly metro for Oslo.

Social Responsibility

It is not uncommon for a company to see committed and well trained employees as the source of its success. This is especially true for Siemens as a company that takes a long-term view. Many of our products and solu-tions are developed over a long period of time, and our customers see Siemens as a company that will still be a reliable partner for them many years down the road. Our employees are the basis for our success, which is why we

attach such great importance to winning the most talented people and keeping them in the Company for many years.

Thirteen Thousand ApplicationsWe have continually expanded the Siemens career

portal. Job seekers apparently like our web site: Siemens Austria’s e-recruiting platform was rated second of 150 companies in a national e-recruiting study by karriere.at, an independent national job and career portal.

We have also received a consistently high number of applications. Nearly 13,000 persons were interested in a position at Siemens Austria in the 2007 fiscal year, and 469 of them were hired. This is an increase of 50 percent over fiscal year 2006.

In a different study conducted annually by Trend-ence-Institut in Berlin, students were asked which com-pany they would most like to start a career at. Siemens Austria came in a very respectable second.

Personnel Development – Key FunctionsWe put a special focus on promoting and developing

talent in the Company across the entire economic region over the past fiscal year. This opened up new career perspectives for high-potential employees in Central and Eastern Europe far beyond the borders of their respective countries. Siemens Austria wants to ensure that a suffi-cient number of suitably qualified candidates is available for all key positions in the CEE economic region.

Performance ManagementSiemens further expanded its performance

management and focused above all on fairly rewarding employee performance, identifying potential, and fostering talent.

We have strengthened our strategic competence management to better develop our employees’ abilities. A job profile has been created for every employee that he or she can compare with his or her competence profile. These job profiles also include the skills that we need for our centers of competence (such as tolling).

We want more employees to gather experience across the economic region. Open positions are now advertised throughout the entire region. We encourage our employees to accept positions in other countries in Central and Eastern Europe.


Roughly 1,300 InternsSiemens again offered many students the opportu-

nity to gather practical experience in the Company over the fiscal year.

A total of 1,104 holiday interns, 35 technical univer-sity students, and 168 work study interns supplemented their classroom learning in their school or university.

We evaluate each student’s experiences and impres-sions at the end of each internship. Most praise the good working atmosphere, rapid assignment to practical activities, and the opportunity to work independently.

Apprentice Training and Adult EducationSiemens is the leading trainer of apprentices in the

Austrian technology sector. Roughly 700 apprentices were working in Siemens Group Austria at the end of fiscal year 2007, thereof 83 percent in technical and 17 percent in commercial fields. Twenty-four of these apprentices were persons with special needs (see page 103).

We were involved in the establishment of the official vocational training path for information technology experts. Fourteen apprentices began their training last September, and the IT apprentices were provided with laptop computers starting on the first day.

Siemens has worked together with the Austrian

Employment Service (AMS) for many years in support of its adult education program. The training we provide in our intensive technician program is oriented towards the careers “electronics” and “communications technology for data processing and telecommunications.” Each program is concluded with a training program test, and all participants earn the European Computer Driving Licence (ECDL). We also conduct technical training for women and youths for AMS. These adult training pro-grams enable the participants to learn a trade quickly and effectively.

Employee QualificationsOur employees hold many different academic

degrees and have studied many different subjects at many different schools and universities. This allows us to leverage interdisciplinary potential and the competence-oriented composition of our employee teams.

At Siemens AG Austria, our employees could be grouped as follows by qualification at the end of the fiscal year: 27 percent graduated apprentices (technical and commercial), 30 percent secondary-school gradu-ates, and 26 percent university graduates (academic or applied sciences). The remaining employees are gradu-ates of technical or commercial academies, and a small number completed compulsory schooling.

Equipping refuge huts with components for wastewater treatment and environmentally friendly power. Siemens is the leading trainer of apprentices in the Austrian technology sector.


Training and Further EducationSiemens offers a variety of development paths

throughout the group. A total of 603 employees success-fully completed one of the offered programs during the fiscal year, 23 percent more than in fiscal year 2006.

A large share completed the management and project management programs and the development measures for high-potential employees. More than 2,800 employees have earned a competence certificate since the inception of the system. We are making increased use of coaching activities and web-based training as a supplement to traditional training methods.

Four Company Daycare CentersSiemens’ four company daycare centers in Austria

looked after roughly 240 children during the fiscal year. This is the largest company daycare program of any industrial company in Austria. The facilities are operated by the Viennese organization Kinder in Wien. The fact that nine teachers and assistants work in each facility ensures an exceptionally high level of care. The centers have long opening hours, and three caregivers at each site speak English. Lunch is served by the company kitchens. Visitors to the Siemens Forum Vienna can also drop their children off at the company daycare center for the duration of their stay.

Fitness and HealthThe fitness and health of our employees is especially

important to us. A team of competent company physi-cians provides pertinent medical advice and care and manages a broad company health program. These physi-cians are assisted by registered nurses, a company psychologist, and freelance trainers.

The company physicians and their team provided company employees with advice in medical matters several thousand times during the fiscal year. Areas covered included first aid for accidents and acute ill-nesses, as well as advice for all other kinds of health problems and before business trips. Our company physi-cians also apply their expertise to the development of the health strategy for our employees. This includes the provision of advice for the preparation of menus in the cafeterias and before spa visits and recuperative vaca-tions, and all other strategies that maintain and increase our employees’ health and performance.

Our employees are helped to take control of their

own personal health management and to define and achieve their own health goals. Siemens also offers its employees a wide range of easily accessible health measures under the Fit for the Future program, including a large number of training courses and seminars cover-ing methods for managing stress such as Ismakogie (relaxation for people who sit for long periods), eye qigong, and massage. The program for quitting smoking has been particularly popular.

Siemens’ social services program is also one of the only support frameworks of its kind in Austria. A specially trained team comprising a physician and a psychologist manages and runs a clearly defined support program for employees with psychological problems and substance abuse issues. We also run a training program for manag-ers that focuses on social competence, substance abuse prevention, and burnout prevention.

A number of limited-time healthcare focuses were defined and implemented during the fiscal year. Thanks to the extraordinary willingness of its employees to donate blood, Siemens won the Corporate Blood Award from the Austrian Red Cross in 2007.

Occupational SafetySiemens is committed to improving the safety of its

employees at work through a wide range of measures. Siemens set up a clear intranet site on occupational safety during the fiscal year to enable managers to better fulfill their responsibility to ensure safe working condi-tions. We also prepared a work safety manual.

Employees can download documents and read the occupational safety laws on the intranet. The Basic Health and Safety Rules were published in paperback form and distributed to the staff. This work safety guide is available in multiple languages.

Ten specially trained safety officers were employed at Siemens Austria during the fiscal year, six of them full time. These experts conducted 257 seminars, inspec-tions, training sessions, and consulting sessions. This is considerably more than in fiscal year 2006, and can in part be attributed to the integration of VA TECH. A key focus this year was comprehensive training for our apprentices to enable them to recognize potential dan-gers, assess them correctly, and to take effective steps to protect themselves.

A total of 219 work accidents occurred in Siemens Group Austria during the fiscal year. This is 10.3 percent


less than in fiscal year 2006 (244). The comparable number of employees fell by 3.8 percent in the same period.

In 137 of these cases, there was no or only little lost work time. Twenty-six of the accidents were moderate, and seven severe. The closed accident incidents resulted in 9,978 hours of lost work time. There were no work-related deaths during the fiscal year.

Employees in Management PositionsMore and more women are taking on management

positions in the business world today, and our Company is no exception. Thanks to our consistent efforts, 14.9 percent of our management staff consists of women, a very encouraging level considering that women make up 21.6 percent of our total staff.

It is especially important for a high-tech company like Siemens to improve the integration of women and their knowledge and competence into its structure and opera-tions. We plan to increase the share of women in the Company at all levels in the coming years.

Persons with Special Needs Siemens employs persons with special needs and has

long placed a special focus on apprentice training for such individuals.

The Company had twenty-four apprentices with special needs on the balance sheet date. Siemens Austria has offered training for apprentices with hearing impair-ments since 1996. As of September 30, 2007, thirteen deaf youths were training together with the other elec-tronics apprentices and profited from virtually seamless integration into the program.

Experienced EmployeesSiemens believes that experienced employees are a

key competitive advantage. During the 2007 fiscal year, 137 employees celebrat-

ed their twenty-fifth and 124 employees their thirty-fifth year of employment with Siemens AG Austria. Thirty-five employees celebrated forty years of service, and two even celebrated forty-five.

Thirteen employees marked their forty-fifth year with Siemens Group Austria, and sixty-three their fortieth year in the group.

A total of 239 employees celebrated their thirty-fifth anniversary, and 249 their twenty-fifth.

We mentioned our web site for retirees and older employees at the beginning of this section.

Traffic education with specially installed traffic signals and signs at one of the Siemens daycare centers. Safety at the workplace: Siemens launched a clear intranet page on this topic and also wrote an occupational safety manual during the fiscal year.


OutlookOur efforts in the future will focus on increasing

mobility and developing intercultural competencies, and on fostering talented young employees throughout our region. This will bring all nine countries of our CEE eco-nomic region closer together and will also facilitate the establishment of further centers of competence.

Siemens is committed to expanding the career opportunities of the employees in these nine countries. International work experience will become more impor-tant for professional advancement at Siemens. To this end, we will also establish a foreign assignment center to provide competent support for employees who take on temporary assignments abroad. We also launched the Employer of Choice program in October 2007 to address the increased need for personnel in the CEE economic region.

Siemens Generation 21Siemens supports education around the world. The

Siemens Generation 21 program focuses on measures for preschool-aged children, students, youths, and young adults. The most outstanding projects in the CEE eco-nomic region are presented below.

Academy of LifeThe Academy of Life (www.academyoflife.at) is

dedicated to presenting prominent figures’ individual recipes for success to talented young entrepreneurs and managers. Ads are placed in newspapers inviting inter-ested persons to apply to participate. One hundred and sixty applicants were accepted during the fiscal year. During the past fiscal year, we welcomed the transplant surgeon Raimund Margreiter, Oscar prize winner Richard Dreyfuss, the highly decorated actress Erika Pluhar, the chocolatier Josef Zotter, the diplomat and investment banker John C. Kornblum, and star chef Johanna Maier to our lectern. The gala evenings with these celebrities were open to the public, but required advance registra-tion. On the following day, the guests were available exclusively to the Academy of Life students.

Radio and Discussions with StudentsSiemens continued its collaboration with selected

schools such as Sir Karl Popper Schule in Vienna. We also made our sound studio at Siemens Forum Vienna avail-able for the Student Radio project again. Students were

given an opportunity to get hands-on experience with the medium radio and produced several radio programs on selected topics that were then broadcast over AM radio.

The three-part Viewpoint series held in cooperation with the Federal Ministry for Education, Art, and Culture and various media partners gave roughly 400 students a venue to exchange their views on hot topics with promi-nent discussion partners and to present opinions from the young generation. Cooperation with the daily news-paper Kurier and Austrian Broadcasting Corporation ensured that the student’s views and opinions were presented to a broader public.

Technology for ChildrenSiemens’ children’s matinees at the Siemens Forums

in Vienna, Graz, Klagenfurt, and Linz were very popular again during the fiscal year. Some 6,000 visitors small and big took part in a total of 18 events. Children built a robot in cooperation with the Zoom children’s museum and got an inside look at the wonderful world of technol-ogy. Rocket cars were built in a different workshop while other children’s matinees featured Latin American rhythms, drums, fairy tales, diversity, and the sounds of the rainforest. All children’s matinees can be attended free of charge, and any donations made by participants are given to the Beehive children’s therapy center.

Concerts for children were held at the Siemens Forums in Vienna and the other provinces in cooperation with Jeunesse and attracted 5,500 visitors.

Siemens has been a partner of the Zoom children’s museum since 2005. Activities with the museum include the development of the Zoomblox project, where chil-dren learn to use the Internet and to create web sites and blogs on specific topics. The largest annual exhibit Eco-Checker taught children a lot about environmental pro-tection, renewable energy, and the world’s future at different stations.

Doctor’s Little Helpers Attracts 15,500 VisitorsSome 15,500 visitors came to the Doctor’s Little

Helpers exhibit at Siemens Forum Vienna and learned about the development of medical equipment and the role such devices play in medical practice at many differ-ent stations. The exhibition went on the road because of its great success and was opened at the Slovak National Museum. Siemens Forum Vienna is also hosting an


interactive exhibition on the history of technology over the last 150 years.

Daughter’s Day with Twenty-Seven WorkshopsSiemens Austria was the exclusive partner of the first

Daughter’s Day ever held. This day allows employee’s daughters to get an inside look at their parent’s workplace and company. Siemens offered twenty-seven workshops for 320 girls in Vienna and the other provinces during the fiscal year. We again held the largest Daughter’s Day in Vienna, and the regional company in Slovakia extend-ed invitations to a Daughter’s Day in Bratislava.

The branches in Linz, Graz, and Innsbruck opened their doors to girls on International Girls’ Day.

Cooperation with Educational InstitutionsAcademic and technical universities are important

educational institutions for future employees. We continued our partnerships with thirty universi-

ties, thirty-six study programs at universities of applied sciences, and twenty-two vocational academies in Austria and the countries of South Eastern Europe during the 2007 fiscal year. We bring our expertise into these projects and also provide devices and equipment for educational purposes. Siemens organizes and finances competitions for students and conducts research together with universities.

Roughly ninety Siemens employees teach at academic institutions.

The following programs are targeted at students:• We developed a scholarship program together with

the Faculty of Informatics at the Vienna University of Technology.

• Our support continued for the Eastern Europe Master Class at the Institute for Strategic Management at the Vienna University of Economics and Business Administration. We highly value education that proves effective in actual practice.

• Over sixty students received assistance from Siemens for their dissertations.

• As a member of Forum Technology and Society at Graz University of Technology, we provide support for papers and dissertations with a high degree of social relevance.

• Siemens awarded several research projects to the Vienna University of Technology and other faculties in Central and South Eastern Europe.

• A cooperation fair with the Faculty of Electrical Engi-neering and Information Technology at the Vienna University of Technology attracted 150 participants.

• We supported projects such as FemTech to create more opportunities for women in fields traditionally dominated by men.

Workshop for safety on the road during Daughter’s Day. Some 15,500 visitors came to the Doctor’s Little Helpers exhibition. The highly decorated actress Erika Pluhar was one of the many prominent and successful figures to teach at the Academy of Life.


• Siemens was also involved in the Virtual Vehicle center of competence in Graz during the fiscal year.

• Top Students and Top Techs are two Siemens talent programs for highly committed students.

Siemens Caring HandsAnother group-wide corporate responsibility initiative

is Siemens Caring Hands, the worldwide program for social projects.

Beehive Therapy Center and SOS Children’s VillagesSiemens has supported various SOS Children’s Vil-

lage sites such as Imst, Moosburg and, our main project, the Beehive therapy and education center in Hinter-brühl. Many employees also support the Children’s Villages and the Beehive with spontaneous projects and donations, and the Company has been supporting another Beehive center in Priština, Kosovo, since it was established.

Support for the Beehive center is one of Siemens’ key social sponsoring focuses. We also support a variety of other projects at a regional level when appropriate – the local companies are in the best position to decide where help is needed most in their area. In Vorarlberg, for example, we made a donation to the Landeszentrum für Hörgeschädigte, a center for persons with hearing disabilities, and provided support to the association Sonnenblume, which cares for chronically ill children. Another example is Graz, where Siemens supported the Child Safety House and helped needy families as part of the Aktion Mensch zu Mensch campaign instead of sending its customers Christmas presents.

Social projects must be assessed regularly and the Company’s corporate responsibility portfolio adapted and refined. We decided to discontinue our support for the Hartheim Institute in Alkoven.

Help without BordersThe group takes a global view when it comes to

disaster relief. Siemens and its employees were heavily involved in flood relief in Austria and in providing aid to tsunami victims in Asia in recent years. Our employees went far beyond the call of duty to restore power after the damage caused by hurricane Kyrill during the fiscal year.

Siemens also provided financial support to the emer-gency fund Doctors without Borders in the 2007 fiscal

year. This aid organization has received a number of awards, including the Nobel Peace Prize and the Austrian Seal of Quality for Charities. We are working to expand our support through operational measures.

Social Projects in the Economic RegionThe local Siemens companies in the CEE economic

region are also committed to doing social good. A brief overview: In Bosnia, Siemens supports children who were disabled during the war. Siemens Bulgaria is com-mitted to helping children with hearing disabilities. The regional company in Croatia supports projects for the protection of children. A Romanian children’s village finances summer vacation for its children on the Black Sea with Siemens’ help. In Serbia, we help a women’s shelter and buy books for socially disadvantaged stu-dents. Siemens in Slovenia provided assistance for the residents of a town struck by heavy flooding. And in Slovakia, Siemens is involved in education projects.

CultureTechnology can be used as a means to present art

and culture to a broader public. Technology can elimi-nate barriers and inspire people to create or enjoy art. Art stirs emotions and can be a bridge between cultures.

FestivalsSiemens has been sponsoring the Haydn Festival in

Eisenstadt since its inception. The focus of the world’s largest Haydn festival in 2007 was Romanticism. Some 10,000 visitors attended the concerts, and all shows were sold out. We also supported the Tyrol Festival in Erl. Siemens’ support for the Salzburg Festival was already described in the corporate responsibility chapter on page 94.

The 100th Exhibition at Siemens_artLabThe 100th exhibition was held at Siemens_artLab

(www.artLab.at) in Vienna. Since founding Siemens_artLab as the first Internet gallery in Austria in 1996, Siemens has supported many young artists from Austria and South Eastern Europe by providing them with a venue to present their creations and by buying individual pieces. Selected works by artLab artists can be bought online. For many young artists, artLab was a springboard to a successful career.


Authors LiveAuthors Live was a series of six readings at the

Siemens Forums in Graz, Klagenfurt, and Innsbruck presenting new releases and definitive classics in the areas of philosophy, technology, and sociology. The authors read key passages, explained their positions, and engaged in critical discussions with the audience. Among others, author Michael Köhlmeier provided insights into his writing technique.

Fundamental Issues of Humanity and Cultural Heritage

Siemens has supported Philosophicum Lech for many years, a conference that discusses traditional philosophi-cal issues every year under the scientific direction of Konrad Paul Liessmann. A record 500 people participated in the conference in Lech in 2007.

We also continued our support for the archeological excavations in Ephesos.

Siemens is a general partner of Vienna Technical Museum. Our employees contributed their technical know-how to the planning of special exhibitions and provided detailed technical information on individual exhibition pieces. Employees also held workshops in the museum, and we invited employees’ children to a special afternoon in the museum.

SportsSiemens is also an active sports sponsor. These

activities focus primarily on skiing and soccer, and sup-port for young, up-and-coming athletes.

We are a technology partner of the Austrian Football Association (ÖFB). An innovative database solution from Siemens Austria optimizes training for the potential national team players as part of the project Challenge 08. The Challenge 08 player database is the core of a system for the structured capture and display of player data from all training activities, medical examinations, performance tests, and technical tactical training goals for the ÖFB. The database also contains training videos.

Siemens equipped the tournament office and the athlete’s hotels with information terminals and Internet access for the U19 European championships.

Siemens is also a partner of the Austrian Ski Federa-tion (ÖSV) and provides technology for information, communication, and training. Siemens developed the

data management system for all Austrian FIS world cup races and the electronic analysis tools for the team trainers. Our ski jumpers are also invited to Vienna to train in the world’s largest wind climate tunnel.

108 Index of Abbreviations

A A&D AutomationandDrives AC/DC alternatingcurrent/directcurrent ADSL AsymmetricDigitalSubscriberLine AMC MSE ApplicationManagementCenterMid-South-Europe AMIS AutomatedMeteringandInformationSystem AMS ArbeitsmarktserviceÖsterreich(AustrianEmploymentService) ASFINAG Autobahnen-undSchnellstraßen-Finanzierungs-Aktiengesellschaft (Austrianhighwaymanagementandoperationcompany) AVÖ AktuarvereinigungÖsterreichs (oldestrepresentativebodyforactuarialmathematicsinAustria)

B B&I SiemensElinBuildingsandInfrastructureGmbH&Co BBC BritishBroadcastingCorporation BFE BFEStudioundMedienSystemeGmbH BM EquityInvestmentManagement bn billion BSH BSHHausgeräteGesellschaftmbH(jointventurebetweenBoschandSiemens) BSS businesssupportsystem

C C2C car-to-car C2I car-to-infrastructure CC CorporateCommunications CD CorporateDevelopment CEE CentralandEasternEurope (oureconomicregionconsistsofthecountriesAustria,BosniaandHerzegovina, Bulgaria,Croatia,Montenegro,Romania,Serbia,Slovakia,andSlovenia) CF CorporateFinance CFR CăileFerateRomâne(Romanianrailoperator) CIC CorporateInnovationCenter CIO CorporateInformationOffice CO2 carbondioxide CoE centerofexcellence COM C CommunicationsCarrier COM E CommunicationsEnterprise CP CorporatePress,CompanySpokesman CR CorporateResponsibility CT computedtomographyscanner,computedtomography

D DDC DynamicDataCenter DSNG DigitalNewsGathering DVB-H DigitalVideoBroadcasting–Handheld DVB-T DigitalVideoBroadcasting–Terrestrial

E EC enginecooling ECDL EuropeanComputerDrivingLicence EEP EuropeanEnvironmentalPress

Index of Abbreviations

109Index of Abbreviations

ERP EnterpriseResourcePlanning ESP EndlessStripProduction EStG IncomeTaxAct ETCS EuropeanTrainControlSystem ETR ELINEBGTractionGmbH EU EuropeanUnion EUR euro(currencyoftheEuropeanMonetaryUnion)

F FM facilitymanagement FSC FujitsuSiemensComputersGesmbH(jointventurebetweenFujitsuandSiemens)

G GDP grossdomesticproduct GIPS GlobalInvestmentPerformanceStandard GPL GlobalProcurementandLogistics GS GeneralSecretariat GSM GlobalSystemforMobileCommunication

H HDTV HighDefinitionTelevision HGB AustrianCommercialCode HR HumanResources HVAC heating,ventilation,andairconditioning

I I&C/TTI InformationandCommunication Transportation–Traffic–Industry(SIMEAunit) I&S IndustrialSolutionsandServices IAC InteractiveApplicationCenter ICE IntercityExpress IPPC IntergovernmentalPanelonClimateChange iSEC ITServicesandEnterpriseCommunicationsGmbH ISO InternationalOrganizationforStandardization IT informationtechnology

J JANAF Jadranskinaftovod(Croatianoilconglomerate)

K KAM KeyAccountManagement KfP KnowledgeforProduction KStG CorporateIncomeTaxAct

L LAN localareanetwork LED lightemittingdiode

M MAV MagyarAllamvasutakRészvénytarsasag(Hungariannationalrailoperator) MED MedicalSolutions MES manufacturingexecutionsystem mn million MR magneticresonance

110 Index of Abbreviations

MRT magneticresonancetomography MVK SiemensMitarbeitervorsorgekasseAG MWW MWWMetallbearbeitungs-GmbH&CoKG

N NSN NokiaSiemensNetworksHoldingGmbH(jointventurebetweenNokiaandSiemens)

O ÖAMTC ÖsterreichischerAutomobil-,Motorrad-undTouringClub(Austrianmotoringclub) ÖB PublicLighting(SGSunit) ÖBB ÖsterreichischeBundesbahnen(AustrianRailways) ÖkR Ökonomierat(economiccouncil) ÖSV ÖsterreichischerSkiverband(AustrianSkiFederation) OEM originalequipmentmanufacturer on prev. year comparedtothepreviousyear ORF AustrianBroadcastingCorporation OSS operationssupportsystem

P PDS ProfessionalDispatching PET positronemissiontomography PG PowerGeneration PRS ProductRelatedServices PTD PowerTransmissionandDistribution

Q QM&OE QualityManagementandOperationalExcellence

R R&D researchanddevelopment RCA RacksCabinetsAssembling RCO RegionalComplianceOfficer REG RegionalResponsibility REV Revision(CompanyAudit)

S SAS 70 StatementonAuditingStandardsNo.70 SBT BuildingTechnologies SEE SouthEasternEurope(CEEeconomicregionwithoutAustria) SEN SiemensEnterpriseCommunicationsGmbH SFS SiemensFinancialServices SGS SiemensGebäudemanagement&-ServicesG.m.b.H SHC SiemensHomeandOfficeCommunicationDevicesGmbH SHM SiemensHealthManagementGmbH Siemens Bacon SiemensBaconGmbH&CoKG Siemens VAI SiemensVAIMetalsTechnologiesGmbH&Co SIMEA SiemensIndustrialManufacturing,EngineeringandApplications SIS CEE SiemensITSolutionsandServices SIS PSE SiemensITSolutionsandServices ProgramandSystemEngineering SNCFT SociétéNationaledesCheminsdeFerTunisiens(Tunisiannationalrailoperator) SOA ServicesOrientedArchitecture

111Index of Abbreviations

SPDSC SiemensPensionDataServicesandConsultingGmbH SPK SiemensPensionskasseAG SPNA SiemensProcurementNetworkAustria SRE SiemensRealEstate STA SiemensTransformersAustriaGmbH&CoKG STR Taxes,LegalServices STS A SiemensTransportationSystemsGmbH&CoKG SV SiemensVDOAutomotiveGmbH SZ Slovenskeželeznice(Slovenianrailoperator)

T TETRA TerrestrialTrunkedRadio TEUR thousandeuros TS TransportationSystems

U UGB UniformCorporateCode ULF “UltraLowFloor”(lowplatformtram) ULM UniversityLiaisonManagement US CompanySafety

V VE MandatoryElements(elementofSiemensQualityManagement) VoIP voiceoverIP(Internettelephony)

W WDR WestdeutscherRundfunk(WestGermanbroadcastingcorporation) WIFO AustrianInstituteofEconomicResearch WiMAX WorldwideInteroperabilityforMicrowaveAccess WLAN wirelesslocalareanetwork

Disclaimer:ThisAnnualReportcontainsforward-lookingstatementsandinformation–thatis,statementsrelatedtofuture,notpast,events.Thesestatementsmaybeidentifiedbywordssuchas“expects,”“anticipates,”“intends,”“plans,”“believes,”“seeks,”“estimates,”“will,”orwordsofsimilarmeaning.Suchstatementsarebasedonourcurrentexpectationsandcertainassumptionsandare,therefore,subjecttocertainrisksanduncertainties.Avarietyoffactors,manyofwhicharebeyondSiemens’con-trol,affectitsoperations,performance,businessstrategy,andresultsandcouldcausetheactualresults,performance,orachievementsofSiemensAGAustriatobemateriallydifferentfromanyfutureresults,performance,orachievementsthatmaybeexpressedorimpliedbysuchforward-lookingstatements.Forus,particularuncertaintiesarise,amongothers,fromchangesingeneraleconomicandbusinessconditions(includingthedevelopmentofmarginsinthemostimportantbusinesssegments),challengesresultingfromtheintegrationofkeyacquisitionsandtheimplementationofjointventuresandothermaterialportfoliochanges,changesincurrencyexchangeratesandinterestrates,introductionofcom-petingproductsortechnologiesbyothercompanies,lackofacceptanceofnewproductsorservicesbycustomerstargetedbySiemensworldwide,changesinbusinessstrategy,theoutcomeofongoinginves-tigationsandlegaldisputes,especiallythecorruptioninvestigationcurrentlyinprogressinGermany,theU.S.A.andothercountries,thepotentialeffectoftheseproceedingsonongoingbusinessincludingourrelationswithgovernmentsandothercustomers,thepotentialeffectofsuchproceedingsonouraccounts,andvariousotherfactors.MoredetailedinformationaboutcertainofthesefactorscanbefoundinthisAnnualReportandinSiemens’filingswiththeUSSecuritiesandExchangeCommission(SEC),whichareavailableontheSEC’swebsite,www.sec.gov,andatSiemens’websitewww.siemens.com.Shouldoneormoreoftheserisksoruncertaintiesmaterialize,orshouldunderlyingassumptionsproveincorrect,actualresultsmayvarymateriallyinapositiveornegativesensefromthosedescribedintherelevantforward-lookingstatementasanticipated,believed,estimated,expected,intended,planned,orprojected.Siemensdoesnotintendorassumeanyobligationtoupdateorrevisetheseforward-lookingstatementsinlightofdevelopmentswhichdifferfromthoseanticipated.

1) Property, plant and equipment including equipment leased to customers.2) Not including employees completing compulsory military service,

employees on maternity leave, and apprentices.

3) Including the figures for VA TECH from July 15, 2005

to September 30, 2005.4) Represents exports from the economic region.

Key Figures 2003–2007

in millions of euros 2003 2004 2005 2006 2007

New orders 2,069.5 2,479.7 2,557.3 3,121.3 3,375.9 8.2%

Sales 2,012.3 2,346.7 2,499.9 2,485.4 2,525.4 1.6%

Exports (as a percentage of sales) 48.0% 48.9% 47.0% 49.9% 48.4% –1.5%

Investments1) 31.4 33.1 29.5 34.8 41.9 20.4%(as a percentage of sales) 1.6% 1.4% 1.2% 1.4% 1.7%


Personnel expenses 659.4 629.3 658.1 714.5 713.1 –0.2%(as a percentage of sales) 32.8% 26.8% 26.3% 28.7% 28.2%


Education and 18.6 17.1 18.5 17.7 18.7 5.5%further training expenses

Siemens AG Austria

in millions of euros 2003 2004 20053) 2006 2007

New orders 3,724.8 4,190.2 4,859.7 8,130.2 8,966.0 10.3%

Sales 3,733.3 3,994.2 4,633.6 6,946.5 7,516.3 8.2%

Exports (as a percentage of sales)4) 33.3% 32.2% n. a. 49.9% 57.8% 7.9%

Investments1) 90.9 71.2 94.5 138.5 126.8 –8.4%(as a percentage of sales) 2.4% 1.8% 2.0% 2.0% 1.7%


Personnel expenses 1,079.0 1,071.8 1,285.0 1,841.3 1,889.1 2.6%(as a percentage of sales) 28.9% 26.8% 27.7% 26.5% 25.1%


Education and 25.5 25.2 n. a. 35.8 37.1 3.6%further training expenses

Siemens Group Austria

Key

Fig

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s 2

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3–

20

07

Gro

up

Str

uct

ure

Branches in Austria


Auto ma ti on and Dri ves (A&D)Wolfgang MorrenthRudolf Preslicka

Indust ri al Solu ti ons and Ser vices(I&S)Kurt HofstädterRobert MonsbergerJosef Kinast

Electronic Tolling (ITS T)Karl StrasserAlexander RennerCorinna Fehr

Building Technologies (SBT)Wolfgang Köppl Christian Knechtel

Siemens Elin Buildings and Infrastructure GmbH & Co (B&I)Herbert WegleitnerWilly StelzerHarald Rest

Siemens Gebäudemanagement &-Services G.m.b.H. (SGS)Gerhard SchreidlMichael RotterJosef Gaupmann

Siemens Bacon GmbH & Co KG (Siemens Bacon)Bernhard BergerHerbert KonradGerhard Schreidl

Siemens VAI Metals Technologies GmbH & Co (Siemens VAI)Richard PfeifferKarl SchwahaSanjeev SinhaWerner Auer

Power

Power Transmission and Distribution; Power Generation (PTD/PG)Gunter Kappacher Johannes Hofmann

Siemens Transformers AustriaGmbH & Co KG (STA)Reinhold ZinglErich BuchgeherJürgen Gressel

Medical

Medical Solutions (MED)Werner BeierJosef Gaupmann

Transportation

Transportation Systems(TS)Gottfried SchusterAndreas Pálffy

ELIN EBG Traction GmbH (ETR)Günther ProkischPeter RauterGerhard Skorepa

Studio- and Mediasystems

BFE Studio und Medien Systeme GmbH (BFE)Horst ErnerthManfred RumpfChristian Luger

Application Management Center

Application Management CenterMid-South-Europe (AMC MSE)Torsten Andres

Financing

Siemens Financial Services (SFS)Wilfried Stuckart

INNOVEST Kapitalanlage AGJohann MaurerKonrad Kontriner

Group Structure

Divisions and Associated Companies


Siemens Enterprise Communications GmbH (SEN)Josef Jarosch Thomas-Charles Samstag

Siemens IT Solutions and Services (SIS CEE)Albert FelbauerHanns-Thomas Kopf Edwin Schulz


Siemens IT Solutions and Services Program and System Engineering (SIS PSE)Herbert DrexlerGerald Feilmair


Siemens Industrial Manufacturing, Engineering and Applications (SIMEA)Friedrich Pressl Ernst Mayrhofer


Key Account Management (KAM)

BregenzBernd SpratlerPeter Vogel

Eisenstadt (Representative Office)Gerhard Lackner

GrazGerhard GeisswinklerGabriele Leber

InnsbruckWerner RitterWolfgang Richter

Helmut BachnerPeter LagerHans LangGernot PrzestrzelskiHannes RothwanglWolfgang Schneider

KlagenfurtKarl JesacherGabriele Leber

LinzWolfgang LaubWilly StelzerGerhard Gruber

SalzburgPeter KorczakGerhard Gruber

St. PöltenJosef Kolarz-Lakenbacher

CorporateDepartments

General Secretariat (GS)Christian Zwickl-Bernhard

Corporate Communications (CC) Gerald Oberlik

Corporate Press,Company Spokesman (CP)Harald Stockbauer

Corporate Development (CD)Gerhard Stappen

Corporate Innovation Center (CIC)Edeltraud Stiftinger

Human Resources (HR)Gerhard Hirczi

Regional Compliance Officer (RCO)Erwin Ackerl

Revision (REV)Wolfgang Pell

Regional Responsibility (REG)Maximilian MairhoferBernhard Bauer

Corporate Finance (CF) Arnulf Wolfram

Equity Investment Management (BM)Dietmar Pokorny

Corporate Information Office (CIO)Ulrich Bleicher

Global Procurement and Logistics (GPL)Wilhelm Kindlinger

Quality Management and Operational Excellence (QM&OE)Wolfgang Raschka

Sie mens Real Estate (SRE)Franz MundiglerChristian Georg Draxler

Taxes, Legal Services (STR)Wolfgang Buchsbaum

Company Safety (US)Johann Peter Titak

Sie mens d.o.o., Sarajevo(including Banja Luka and Mostar)Ranko AtijasLejla Sokolović

Regions

Sie mens EOOD, SofiaKurt HainschitzWalter SölleWilhelm Kitzhofer

Sie mens d.d., ZagrebUwe GregoriusBranko LamplPeter Hinteregger

Sie mens d.o.o., Podgorica(Sales Company)Kurt SchwarzlmüllerVitomir Stošković

Sie mens d.o.o., BelgradeTihomir RajlićKurt Schwarzlmüller

Siemens s.r.o., BratislavaPeter KollárikVladimír SlezákDale André Martin

Sie mens d.o.o., LjubljanaTihomir RajlićBorut Ogrin

Sie mens S.R.L., BucharestWolfgang HirziAdrian Baicusi Georg Weiher

on prev.year

on prev.year

Contact

Information on the Report Contents (Corporate Press)Phone +43 (0)51707-22220 Fax +43 (0)51707-53000 E-mail [email protected] www.siemens.at/gb2007

Corporate Responsibility (CR)Phone +43 (0)51707-29300Fax +43 (0)51707-53000E-mail [email protected]

Postal AddressSiemens AG Austria Siemensstraße 92 A-1211 Vienna

Information on additional locations can be found at www.siemens.at/standorte.

External Orders for the Annual ReportE-mail [email protected] Internet www.siemens.at/bestellung-gb2007 Phone +43 (0)51707-22220 Fax +43 (0)51707-53000

Internal Orders for the Annual ReportGPL CLS Intranet spna.intranet.siemens.at “SPNAeasy SelfService” German order number CC 1000d.1207 8.0 Article number 5800153022English order number CC 1000e.1207 4.0 Article number 5800153025

Please include your postal address and complete Org-ID with all orders.

This Annual Report is also published in German. Electronic versions will be available for download in English and German at www.siemens.at/presse in January 2008.

Imprint The names and designations used in this report may be registered trademarks. Their use by other parties may violate the rights of their owners.

Photo CreditsAll pictures are copyright Siemens AG Austria.

We would like to thank:Markus Rössle (pages 2, 6, 16/17, 18/19, 20/21, and 22/23)GEPA pictures GmbH (page 24/25)Flughafen Wien AG (page 26/27)

Additional photos:Siemens VDO Automotive (page 51)RHI AG (page 54)BSH Hausgeräte Gesellschaft mbH (page 61)Fujitsu Siemens Computers GesmbH (page 61)beyer.co.at images (page 62 left)Thomas Pfl aum/Visum/CONTRAST (page 64)

Concept, Coordination, and ImplementationProject management: Christian Holler-BergerEditing: Elisabeth Dokaupil, Ursula GrablechnerPhoto editing: Sieglinde Hofstätter, Sabine NebenführImage texts: Dietmar DahmenCorporate Responsibility: Erwin Bendl, Angelika KainzMaps/fl ags: Freytag Berndt u. Artaria, A-1230 ViennaEconomic data: Gerold ZakariasCreative direction: Martina MikulkaArt direction: Karoline Eisl, Christina LehnerProduction: Jutta Duschet, Josef KramerTypesetting and lithography: CPZ Zeitschriftenverlagsges.m.b.H.Translation andproofreading: LanguageLink Sprachdienste GmbHPrinting: “agensketterl” Druckerei GmbH

Typesetting and printing errors excepted.

Copyright © Siemens AG Austria 2007All rights reservedPrinted in AustriaOrder number: CC 1000e.1207 4.0

Where is our largest construction project ever?

Central and Eastern Europe is one of Siemens’ most important global markets. Now, a structural tribute to the extraordinary performance and outstanding growth opportuni-ties in CEE is being built in Vienna.Siemens City in Vienna is the larg-est construction project ever un-dertaken by Siemens anywhere in the world. In the first phase of this project, a high-tech communica-tion hub with 3,000 new workplac-es will be built by 2010 at Siemens’ Siemensstraße campus. The con-struction of Siemens City is trans-forming the current campus into one of the world’s most modern business sites with state-of-the-art offices that conform with the green building program, a conference center, and a new, unique dining concept. All of this is a symbol of our confidence in Austria. And in the future that awaits us in Central and Eastern Europe.Siemens AG Austria

Economic Region Austria – Central and Eastern Europe

www.siemens.at

Annual Report 2007

Cover picture:Siemens City ViennaArchitects: SOYKA/SILBER/SOYKAVisualization: beyer.co.at images

Contact Where is our largest construction project ever? · Thomas Pﬂ aum/Visum/CONTRAST (page 64)...

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Transcript of Contact Where is our largest construction project ever? · Thomas Pﬂ aum/Visum/CONTRAST (page 64)...