s
Information & Communications
Transportation
Research and Technology
at Siemens
Power
Automation & Control
CORPORATE
TECHNOLOGY
Health
© Siemens AG, CT, September 2001
CORPORATE
TECHNOLOGY
Key Figures for 2000
Fiscal 2000
Fiscal 1999
New orders
83.425
69.537
+ 20
Net sales
78.396
68.582
+ 14
Capital expenditure and investments
11.358
5.898
+ 93
Research and Development
Net income before extraordinary items
5.593
3.381
5.236
1.865
+7
+ 81
Net income including extraordinary items
7.901
1.865
-
447
443
25.640
17.200
2.40*
1.00
Employees (Sept. 30, in thousands)
Shareholders‘ equity (September 30)
Dividend per share in €
Change in %
+1
Amounts in billions of euros unless otherwise stated
* Dividend EUR 1.40 and extra dividend EUR 1.00
Research and Technology at Siemens
© Siemens AG
CT / E 020 a - 02.01
2
Corporate Structure
(May 1, 2001)
Managing Board
CORPORATE
TECHNOLOGY
Operations
Corporate Departments
Information and Communications
Automation and Control
Power
Information & Communication Networks (ICN)
Automation and Drives
(A&D)
Power Generation
(PG)
Corporate Finance
(CF)
Information & Communication Mobile (ICM)
Industrial Solutions and
Services (I&S)
Power Transmission
and Distribution (PTD)
Corporate Personnel
(CP)
Siemens Business Services
GmbH & Co. OHG (SBS) *
Siemens Dematic AG
(SD) *
Transportation
Siemens Building
Technologies AG (SBT) *
Siemens Financial
Services GmbH (SFS) *
Corporate Development
(CD)
Lighting
Siemens Real Estate
(SRE)
Corporate Centers:
Transportation Systems
(TS)
Siemens VDO
Automotive AG (SV) *
Osram GmbH *
Medical
Medical Solutions
(Med)
Financing and Real Estate
Infineon Technologies AG *
Regional Units: Regional Offices, Regional Companies, Representative Offices, Agencies
Research and Technology at Siemens
Corporate Technology
(CT)
Corporate Communications (CC)
e-Business (eB)
Chief Economist /
Corporate Relations (ECR)
Global Procurement and Logistics (GPL)
Information and
Knowledge Management (IK)
Management Consulting Personnel (MCP)
*)
Legally Separate Group
© Siemens AG
CT / E 011 a - 05.01
3
CORPORATE
TECHNOLOGY
Global Player −
Operations Around the World
•
Sales
Manufacturing
Manufacturing locations:
Europe
327
152
Americas
79
Asia-Pacific
Africa,
Middle East, C.I.S.
14
Research and Technology at Siemens
© Siemens AG
CT / E 013 a - 11.00
4
Increase in Sales
in the Americas and Asia
Sales (in billions of euros)
48.2
54.7
60.2
68.6
78.4
5%
13 %
CORPORATE
TECHNOLOGY
5%
12 %
Africa, Middle East, C.I.S.
Asia-Pacific
The Americas
Europe
(excl. Germany)
6%
11 %
6%
11 %
5%
11 %
25 %
23 %
20 %
31 %
17 %
27 %
27 %
31 %
29 %
30 %
39 %
34 %
31 %
27 %
24 %
1996
1997
1998
1999
2000
Germany
Research and Technology at Siemens
© Siemens AG
CT / E 014 a - 12.00
5
The Top Ten Companies in Electrical Engineering
and Electronics in Fiscal 2000
133.0
Total sales (in billions of euros)
Sales in electrical capital goods (in billions of euros)
91.0
CORPORATE
TECHNOLOGY
86.5
81.1
78.4
73.6
66.8
62.7
48.7
58.8
52.4
51.4
51.1
49.8
48.8
48.5
Fujitsu
(Japan)
NEC
(Japan)
Hewlett
Packard
(USA)
36.8
41.2
26.6
20.0
GE (USA)
IBM (USA)
Hitachi
(Japan)
Siemens Matsushita
(Germany) Electric
(Japan)
Sony
(Japan)
Toshiba
(Japan)
(Source: CD S W - 12/00)
Research and Technology at Siemens
© Siemens AG
CT / E 012 a -12.00
6
Speed as a Measure of Innovative Strength
Shares of sales
with products
CORPORATE
TECHNOLOGY
5 years
and younger
6 to 10
years
48%
55%
75%
30%
29%
More than
10 years
22%
1980
Research and Technology at Siemens
19%
16%
1985
6%
2000
© Siemens AG
CT / E 045 a - 12.00
7
Leading Position in Patents is the Proof of
Our Innovative Strength
Siemens
Philips
Bosch
Siemens
DaimlerChrysler
Matsushita
BASF
Bosch
Volkswagen AG
CORPORATE
TECHNOLOGY
Frauenhofer Gesellschaft
BMW AG
Bayer AG
0
Procter&Gamble
Published applications at
the German Patent Office
1000
2000
Canon
Lucent
Compagnie Générale D‘Eléctricité
0
Applications at the
European Patent Office
1000
2000
Siemens
IBM
Philips
NEC
Procter&Gamble
LM Ericsson
Bosch
1000
Samsung
WIPO
Published applications
under the PCT
3M
BASF
Matsushita
0
Canon
(WIPO: World Intellectual
Property Organisation)
Lucent
(# 6)
Sony
Micron Technology
Toshiba
Granted patents of
the US Patent Office
0
2000
1000
3000
Source: Reports 2000/01 of the patent offices/WIPO
Research and Technology at Siemens
© Siemens AG
CT / E 030 a - 02.01
8
R&D Expenditure of the Top Ten Electrical Engineering Companies
(Based on annual reports 1999 and corresponding exchange rates;
only partially comparable, without external R&D orders and public funding)
Expenditure in millions of EUR
CORPORATE
TECHNOLOGY
Expenditure in percent of sales
7.1
Siemens
5,593
6.0
IBM
5,521
7.2
Matsushita
5,193
5.4
Hitachi
4,272
7.6
Fujitsu
3,962
5.9
Sony
3,897
5.8
Toshiba
3,304
6.3
NEC
3,110
5.8
HP
2,555
3.0
GE *)
1,745
Research and Technology at Siemens
*) without
GECS (GE Capital Services)
Source: Siemens AG, CD S W 12/00)
© Siemens AG
CT / E 050 a - 12.00
9
56,870 R&D Employees Worldwide,
Thereof 25,000 Outside of Germany
CORPORATE
TECHNOLOGY
Redmond
Issaquah
Auburn
Hills
Mississauga
Chicago
Burlington
Berkeley Concord
Danvers
Palo
Alto
Santa Clara
Pittsburgh
Piscataway
Sacramento San Jose
Princeton
Raleigh
Arlington
Newport News
Norcross
Austin
Orlando
Boca Raton
Solna
Eynsham
Paderborn
Helsinki
Bracknell
Bristol
Berlin
Roke Manor
Dresden Erlangen
Brussels
Paris
Regensburg
Karlsruhe
Bratislava
Zürich
Wien
Budapest
Toulouse
Munich Graz Istanbul
Porto
Linz
Grenoble
Lissabon
Salzburg
Tel Aviv
Madrid
Milano
Chang Chun
Xian
Chengdu
New Dehli
Bombay
Bangalore
Tokyo
Seoul
Tian Jin
Ichon
Nanjing
Shanghai
Penang
Sao Paulo
Curitiba
Beijing
Yokohama
Taipeh
Singapur
Johannesburg
Sydney
Buenos Aires
Melbourne
Standorte mit CT- Aktivitäten
Research and Technology at Siemens
© Siemens AG
CT / E 026 a - 08.01
10
Siemens‘ R&D Expenditure in Fiscal Year 1999/00:
EUR 5.6 Billion / 7.1 Percent of Sales
About 96% at Groups, Regional Units, Subsidiaries and
Associated Companies for development of products, systems
and manufacturing processes
r
we
Po
Information and
Communications
Infineon Technologies AG
CORPORATE
TECHNOLOGY
Automation
and Control
Research and Technology at Siemens
Others
About 4% at
– Corporate Technology (CT),
– Siemens Corporate Research (SCR), and
– Roke Manor Research Ltd. (RMR)
for research, basic development
and advanced production technologies
© Siemens AG
CT / E 041 a - 03.01
11
Siemens Corporate Technology:
Mission, Vision and Strategy
Goal: Creation of Economic
Value Added for the Company
CORPORATE
TECHNOLOGY
Mission:
C Securing the
technological future
and
C Increasing the
competitiveness
of the company in close
cooperation with the
Business Groups and
Regional Units
Vision
Network of Competences
&
Partner for Innovations
Strategy
Concentrating on core technologies
Internal and external networking and cooperation
Increased customer orientation
Decentralizing responsibilities and
fostering technopreneurship
B Systematic innovation and technology planning process
B
B
B
B
Research and Technology at Siemens
© Siemens AG
CT / E 076 a - 08.01
12
Corporate Technology
Technology Divisions
Materials and Manufacturing
Production Processes
Energy
Microsystems
CORPORATE
TECHNOLOGY
Software and Engineering
Information and Communications
Strategic Marketing
Intellectual Property Services 1
Intellectual Property Services 2
Intellectual Property Services 3
Intellectual Property Region US
Regional Intellectual Property Units
Intellectual Property Support
Company Name & Trademark Law
Business Administration
and Controlling
Human Resources
Chief Information Officer /
Chief Knowledge Officer
Corporate Functions
Siemens Corporate Research, Inc.
Roke Manor Research, Ltd. *
Siemens Technology
Accelerator GmbH
Corporate Intellectual Property
Technology-toBusiness Center, LLC
Standardization & Regulation
Information Research Center
Quality Management
Environmental Affairs
& Technical Safety
Research and Technology at Siemens
* Functional reporting to Corporate Technology
© Siemens AG
CT / E 070 a - 08.01
Core Technologies are Strategically Important
for the Company
Core Technologies ...
... are consistently derived from the medium-term technological requirements
of the Groups.
... support multiple business areas and Groups.
... offer potential for long-term innovation and growth.
CORPORATE
TECHNOLOGY
... are technologies providing major contribution to value-added and net earnings.
Research and Technology at Siemens
© Siemens AG
CT / E 082 a - 12.98
14
Technology Divisions and Core Technologies:
Network of Competences − Partner for Innovations
Innovative
Electronics
Ceramics
Functional
Polymers
Materials Micromechanics
&
& Coatings
Manufacturing
CORPORATE
TECHNOLOGY
Joining
Technologies
Packaging &
Assembly
Design to Prototype
Security
Product Definition
Manufacturing
Engineering
Virtual
Engineering
Production
Processes
Holistic
Processes
Service
Management
Simulation & Risk
Management
Neural
Computation
Roke Manor
Research
Radio Communications
Sensor
Solutions
Microsystems
Imaging &
Visualization
Superconductivity
and Cryogenics
Switching
& Plasma
Technology
Energy
Electrochemistry
Knowledge Management
& Business Transformation
Information
&
Communications
Human
Computer
Interaction
Siemens
Corporate
Research
Multimedia
Documentation
Processes
CT Liaison
Office
Tokyo
CTD at SLC
Beijing
Software
Engineering
Transducer
Systems
PEM Project
Development Techniques
User Interface Design
Intelligent
Autonomous
Systems
Multimedia/Video
Technology
Products
Power
Electronics
Sensor & Actuator
Systems
Networks &
Multimedia
Communications
Information Technology &
Networks
Sensors
Microwave Systems
Analytics
Design
Automation
Software
&
Engineering
Architecture
Systems
Engineering
Discrete Optimization
Siemens
Technology
Accelerator
Siemens
Technologyto-Business
Center *)
Strategic Field
Information & Communication
& Automation
Strategic Field
Energy & Drives
& Materials
Strategic
Marketing
Strategy
Development
Strategic Field
Services
Cooperation
and Media
*) subsidiary to Siemens Corporate Research
Research and Technology at Siemens
© Siemens AG
CT / E 085 a - 08.01
15
How Corporate Technology Works in the Company
Technology Divisions of CT / SCR:
Network of Competences
CORPORATE
TECHNOLOGY
Innovation and
Technology
Committee (AIT)
Increase competitiveness
through innovation
and productivity:
Pictures of
• Setting up and
the Future
directing
and
working groups
Working
• Deciding and
Groups
directing cross-Group
and cross technology
programs and actions
• Consulting
Corporate Technology
• Reporting to the
Corporate Executive
Committee
Materials
&
Manufacturing
Microsystems
Software
&
Engineering
Production
Processes
Energy
Groups
• Automation and Drives
(A&D)
• Information and Communication Mobile (ICM)
•
Technology
Planning
and KAM
Strategic
Marketing
Siemens
Corporate
Research
Information &
Communications
1320 R&D Employees in Munich, Erlangen,
Berlin and Princeton
Cross-Group, medium-term
and long-term orientation
Research and Technology at Siemens
•
•
•
•
• Siemens VDO
Automotive AG (SV)
• Transportation Systems
(TS)
Regional Units
Group-specific, short-term
and medium-term orientation
© Siemens AG
CT / E 120 a - 08.01
16
The Time Horizons of the R&D Activities of the Business
Groups and of Corporate Technology are Different
R&D
Expenses
CORPORATE
TECHNOLOGY
Business
Groups
Total
R&D expenses
Corporate
Technology
Today
One product
generation
in the future
Two product
generations
in the future
Time to market
(The absolute time scale
depends on business)
A seamless transition from R&D in Corporate Technology
to the Business Groups is crucial for our success
Research and Technology at Siemens
© Siemens AG
CT / E 125 a -08.01
17
Networking to the Groups: Key Account Managers
Represent the Whole of CT‘s Technologies
Siemens
Siemens
Business
Business Services
Services
GmbH
GmbH&&Co.
Co.OHG
OHG
Information
Information&&
Communication
Communication
Networks
Networks
Information
Information&&
Communication
Communication
Mobile
Mobile
Automation
Automation
and
andDrives
Drives
Medical
Medical Solutions
Solutions
Key Account Manager
CORPORATE
TECHNOLOGY
Industrial
Industrial Solutions
Solutions
and
andServices
Services
Siemens
Siemens
Dematic
Dematic AG
AG
Siemens
Siemens Building
Building
Technologies
Technologies AG
AG
Transportation
Transportation
Systems
Systems
Corporate Technology
Materials &
Manufacturing
Microsystems
Key Account Manager
Produktion
Processes
Power
Power Transmission
Transmission
and
andDistribution
Distribution
Key Account Manager
Power
Power Generation
Generation
Siemens
Siemens VDO
VDO
Automotive
Automotive AG
AG
Software
&
Engineering
Information &
Communications
Siemens
Corporate
Research
Infineon
Infineon TechnoTechnologies
logies AG
AG
Energy
Osram
OsramGmbH
GmbH
Key Account Managers act like heads of “virtual Group laboratories“
Research and Technology at Siemens
© Siemens AG
CT / E 137 a - 09.01
18
Strategic Planning of Technologies & Innovations
CORPORATE
TECHNOLOGY
Strategic
Strategic
Visioning
Visioning
Scenarios
Scenarios
of
of the
the
Business
Business
Segments
Segments
"Retropolation" out of
Scenarios
ï New Customer Requirements
ï New Markets
ï New Technologies
ï New Businesses
Today‘s
Today‘s Business
Business
Individual
Society
Transportation
Information &
Communications Power
"Extrapolation“
"Extrapolation“ via
via
Roadmaps
Roadmaps
Health
ð
ð Products
Products
ð
ð Technology
Technology
ð
ð Customer
CustomerRequirements
Requirements
Factors of
Influence
Politics
Economy
Environment
Automation
& Control
Technology
Customers
Competition
Horizon of time
Today
Short-term
Research and Technology at Siemens
Medium-term
Long-term
© Siemens AG
CT / E 100 a - 07.01
19
Picture of the Future
Information & Communications
Home
On the move
Mobile
internet
Multimedia
cockpit
Satellite/
Sky-station
Application
service provider
Gateway
CORPORATE
TECHNOLOGY
Voice/
IP server
Private
SOHO
Router
Carrier
IP
λ
IP
λ
Leisure
IP
λ
Work
Carrier-of-Carrier
Router/
Switch
Local
server Enterprise
CATV/Multimedia
Wireless communication
Secure
tele-collaboration
Augmented
reality
Flat screen
desk projection
Personal navigation
and localisation
Mobile surveillance,
multimedia communication
Research and Technology at Siemens
© Siemens AG
CT / E 110-1 a - 07.01
20
Picture of the Future
Automation & Control
E-commerce
E-business
Methane/hydrate
extraction
Low emission production
CORPORATE
TECHNOLOGY
Customized
products
Individual logistics
IT-driven after
sales services of
machines and
plants
Totally integrated automation
Virtual realitybased plant
and product
engineering
Decentralized economical and
ecological recycling processes
Research and Technology at Siemens
- HTS analysis for genetic and
material development
- Research automation
- Micro systems for production
© Siemens AG
CT / E 110-2 a - 07.01
21
Picture of the Future
Transportation
GPS positioning
Wireless
communication
networks
Dynamic
Information
displays
Personal travel
assistant
Service centre
(traffic information)
Fleet
management
Electronic toll
collection and
enforcement
Magnetic Levitation
Transrapid
CORPORATE
TECHNOLOGY
Remote diagnosis
and maintenance
Adaptive cruise control
Low/zero
emission
city
Traffic data
collection
In-car navigation and
information systems
Smart
safety
systems
Public
transport fare
management
Parking
guidance
system
Electronic ticket,
hands free
Radio-based
vehicle
operations
Environmentallyfriendlier fuels
Dynamic
passenger
information
Research and Technology at Siemens
© Siemens AG
CT / E 110-3 a - 08.01
22
Picture of the Future
Power
Supply company
Unbundling
Power generation
Short-circuit current limiters
Distribution
company
Transmission
company
Power
Gas
Services
MVDC transmission
Water/sewage
Solid state circuit
breaker
Traders, brokers
Power-Quality
Communication
Generation
company
TECHNOLOGY
Redidential power and heat supply
by distributed generation
Investors
Building management,
automation and control
Hydrogen filling station
Customer
care center
Virtual control room
CORPORATE
Service card
Transparent
power plant
Research and Technology at Siemens
Multi service
utility
© Siemens AG
CT / E 110-4 a - 07.01
23
Picture of the Future
Health
Internet
Intermediaries
Insurance
companies
Economical
optimization
of cost and health
Health information
& management systems
Health
Disease
monitoring
and control
CORPORATE
TECHNOLOGY
Cost
Totally digital hospital
Primary care physicians
wellness.com
3D-scan data
acquisition and
diagnosis support
Roboter-assisted
tele operation,
minimally
invasive
pharmacy online.com
Rehabilitation
program
Integrated patient data
Research and Technology at Siemens
Care at home
© Siemens AG
CT / E 110-5 a - 07.01
24
Mission of Corporate Intellectual Property and Functions
Protection of Intellectual Property Rights, including company names and trademarks, and
protection of intellectual know-how, thus contributing to corporate competence and excellence
CORPORATE
TECHNOLOGY
Technical Standardization and Regulation, including testing, certification, and general issues;
representation of these corporate issues to associations, standardization organizations,
authorities and other external partners
Technical, scientific, and market oriented information and its procurement.
Provision of internal
databases and external information services via a company wide network
Quality Management: Definition of principles of corporate quality; development and approval
of programs for quality improvement, as well as definition of standards
Environmental Affairs & Technical Safety: Establishment of basics of corporate positions
and their execution, incl. technical support and consulting to the corporation; audits,
coordination
Research and Technology at Siemens
© Siemens AG
CT / E 080 a - 12.00
25
Corporate Technology − Locations Worldwide
Roke
Roke Manor,
Manor, Romsey
Romsey
Berkeley, CA
Berlin
Erlangen
Tokyo
Princeton, NJ:
150 R&D employees
Munich-Perlach
CORPORATE
TECHNOLOGY
Beijing
Research and Technology at Siemens
© Siemens AG
CT / E 160 a - 08.01
26