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Front cover: Intelligent technology from Siemens adjusts the lighting throughout the Citigroup tower and underground station at Canary Wharf, ensuring a comfortable level of illumination for thousands of people every day. United Kingdom

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Annual Review 2002

Siemens products and services touch all of our lives in some way, every day of the year.

Highlights

Key figures
New orders Turnover Earnings before interest and tax R&D Exports Employees

2000 2,576.0 2,471.1 76.7 54.4 250.8 15,413

2001 3,342.7 2,354.5 84.1* 39.8 316.8 17,369

2002 2,399.2 (3,843.1) 2,598.2 (4,161.9) 143.0 (229.1) 23.7 (38.0) 424.2 (679.5) 15,917

Figures in m, except employees, relate to Siemens financial year October 2001 September 2002, excluding some affiliated companies. The Euro equivalent is approximate, based on an average of monthly exchange rates throughout the period.
*

Excluding exceptional items

Growth of Siemens in the UK 3000 2500 2598 2000 2018 1500 1000 500 0 225 1986 881

1991

1996

2002

Turnover in m

Contents 2 Business overview 4 Working with our customers 6 Information and Communications 12 Automation and Control 18 Transportation 22 Power 24 Medical 26 Research and Development 27 Lighting 28 Financial Services 29 Affiliated Companies 30 What are we like to work with? 31 Living and working in our community 32 Our Executive Management Board 34 Main locations of Siemens businesses in the UK

Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-onThames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Glasgow Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Eynsham Hemel Hemstead Maidenhead Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich HitchinNewcastle Banbury Durham Swindon Harrow Slough Bracknell London Reading Crawley Romsey Poole Glasgow Belfast Wokingham Hayes Staines Walton-on-Thames Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley York Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Leeds To find out about Siemens Ireland, visit Blackpool Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton MiltonBarnsley Keynes www.siemens.ie Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on Manchester Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds YorkBarnsley Manchester Liverpool Sheffield Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Congleton Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon HarrowTelford Slough London Reading Wokingham Hayes Nottingham Bracknell Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Hinckley Wellingborough Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Solihull Birmingham Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Coventry Slough Bracknell London Reading Ipswich Wolverton Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Newcastle Durham Blackpool Leeds York WorcesterBelfast Milton Keynes Hitchin Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Banbury Solihull Wellingborough Coventry Hemel Hempstead Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Eynsham Harrow Maidenhead Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Slough Swindon London Bristol Hayes Bracknell Hinckley Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Birmingham Solihull Staines Reading Hemel Walton-on-Thames Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemstead Maidenhead Wokingham Crawley Romsey Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Poole Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-onThames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry Wolverton Milton Keynes Worcester Ipswich Hitchin Banbury Eynsham Hemel Hemstead Maidenhead Swindon Harrow Slough Bracknell London Reading Wokingham Hayes Staines Walton-on-Thames Crawley Romsey Poole Glasgow Belfast Newcastle Durham Blackpool Leeds York Barnsley Manchester Liverpool Sheffield Congleton Telford Nottingham Hinckley Birmingham Solihull Wellingborough Coventry

Our people are based across the UK

Businesses in the UK
Information and Communications Affiliated Companies New Orders 944.1 (1,512.3) New Orders 889.4 (1,424.7) Turnover 961.1 (1,539.5) Turnover 873.1 (1,398.6) Employees 6,758 Employees 1,756 1 Siemens Business Services Fujitsu Siemens Computers Siemens Communications Insight Consulting Siemens Datatrak2 Mobisphere Oxford Magnet Technology Siemens Information & Siemens Domestic Appliances Communication Mobile Siemens Network Systems3 In nforma ation and d Co ommunication ns Automation and Control Affiliated New Orders 459.3 (735.7) Transportation Transpo ortation Companies Turnover 442.3 (708.5) New Orders 209.6 (335.7) Employees 2,966 Turnover 449.3 (719.7) Dickinson Integrated Solutions Employees 997 Siemens Automation and Drives Siemens Transportation Systems Siemens Building Technologies Siemens VDO Siemens Dematic Siemens Traffic Controls Financial Services Auto omation Financial Services and Control Interest receivable 78.1 (125.1) Power Employees 207 New Orders 311.4 (498.8) Siemens Financial Services Turnover 280.2 (448.8) Employees 2,531 ICIS Technology Lighting Siemens Energy Services New Orders 69.2 (110.8) Siemens Environmental Systems Turnover 69.2 (110.8) Lighting g Power Siemens Power Generation Employees 118 Siemens Power Transmission Osram and Distribution

Research and Development New Orders 31.9 (51.1) Turnover 30.9 (49.5) Employees 464 Roke Manor Research
Figures in m
1 2

Research and Development

Me edical

Medical New Orders 190.7 (305.5) Turnover 173.9 (278.6) Employees 722 A&M Hearing Siemens Healthcare Services Siemens Medical Solutions

Financial year runs from 1 April 01 to 31 March 02 From December 2002, Siemens Datatrak became part of the Siemens VDO Trading business in the Transportation group 3 Disposed of during financial year

24 Seven Utility Services Ltd. Abacus Group plc. Addenbrookes NHS Trust. Addison Tube Forming Ltd. Alliance Medical Ltd. Alstom Signalling Ltd. Angel Trains Ltd. Argos Ltd. Bank of Ireland. Barclays Bank plc. BHS Leasing Ltd. Britannia Airways Ltd. British Airways plc. British Gas Trading Ltd. British Telecom. BSL Ltd. BT Cellnet Ltd. Catalyst Healthcare Ltd. Cincinnati Machine UK Ltd. Close Asset Finance. Coventry City Council. Department for Environment, Food and Rural Affairs (DEFRA). EPN Distribution Ltd. Euro Cellular (Distribution) plc. FAS Capital Ltd. Ford Motor Company Ltd. Framatome ANP. Freeman NHS Trust. George Wilson Industries Ltd. Global Crossing UK Ltd. Great Ormond Street Childrens Hospital. Gwent Healthcare NHS Trust. HCA International Ltd. Heller Machine Tools Ltd. HEX Operating Company Ltd. Highways Agency. HMK Technical Services Ltd. Home Office Immigration and Nationality Directorate (IND). HSBC Bank plc. Institute of Neurology. IPC Media Group Ltd. King Edward VIIs Hospital. Kettering General Hospital. Lanarkshire Acute Hospital NHS Trust. Lewisham Hospital NHS. Lloyds TSB Bank plc. Lothian University Hospital NHS Trust. Lucas Ltd. Marconi Communications Ltd. Metier Healthcare Ltd. Ministry of Defence. Moyle Interconnector plc. National Air Traffic Services Ltd. National Grid Group plc. National Savings and Investments. Nationwide Building Society. NHS Logistics Authority. Northern Electrical Ltd. npower Ltd. O2. One 2 One Ltd. Orange plc. Oxford Radcliffe Hospital. Parmley Graham Ltd. Phoenix Electrical Company Ltd. Phoenix Natural Gas Ltd. Police Information Technology Organisation (PITO). Portcullis Oldham Ltd. Powergen plc. Queen Marys Sidcup NHS Trust. Railtrack plc. Rolls Royce Power Engineering plc. Royal Alexandra Hospital. Royal Brompton & Harefield NHS Trust. Royal Cornwall Hospital. Schrader Electronics Ltd. Scottish & Southern Energy plc. Scottish Power plc. Singer and Friedlander Ltd. Southern Derbyshire Acute Hospitals NHS Trust. Summit Healthcare Ltd. Swindon & Marlborough NHS Trust. Synectics Medical Ltd. Talkland Communications Ltd. Thames Water plc. The Carphone Warehouse. The Highways Agency. The National Assembly For Wales. The Royal Bank of Scotland. Transco plc. Transport For London. TXU Energi. Underwoods Electrical Distributors. United Bristol Healthcare NHS Trust. United Kingdom Passport Agency. United Utilities Water. University Hospitals of Leicester NHS Trust. Vodafone Ltd. Valmet Atlas Plc. Winchester & Eastleigh Healthcare NHS Trust. 24 Seven Utility Services Ltd. Abacus Group plc. Addenbrookes NHS Trust. Addison Tube Forming Ltd. Alliance Medical Ltd. Alstom Signalling Ltd. Angel Trains Ltd. Argos Ltd. Bank of Ireland. Barclays Bank plc. BHS Leasing Ltd. Britannia Airways Ltd. British Airways plc. British Gas Trading Ltd. British Telecom. BSL Ltd. BT Cellnet Ltd. Catalyst Healthcare Ltd. Cincinnati Machine UK Ltd. Close Asset Finance. Coventry City Council. Department for Environment, Food and Rural Affairs (DEFRA). EPN Distribution Ltd. Euro Cellular (Distribution) plc. FAS Capital Ltd. Ford Motor Company Ltd. Framatome ANP. Freeman NHS Trust. George Wilson Industries Ltd. Global Crossing UK Ltd. Great Ormond Street Childrens Hospital. Gwent Healthcare NHS Trust. HCA International Ltd. Heller Machine Tools Ltd. HEX Operating Company Ltd. Highways Agency. HMK Technical Services Ltd. Home Office Immigration and Nationality Directorate (IND). HSBC Bank plc. Institute of Neurology. IPC Media Group Ltd. King Edward VIIs Hospital. Kettering General Hospital. Lanarkshire Acute Hospital NHS Trust. Lewisham Hospital NHS. Lloyds TSB Bank plc. Lothian University Hospital NHS Trust. Lucas Ltd. Marconi Communications Ltd. Metier Healthcare Ltd. Ministry of Defence. Moyle Interconnector plc. National Air Traffic Services Ltd. National Grid Group plc. National Savings and Investments. Nationwide Building Society. NHS Logistics Authority. Northern Electrical Ltd. npower Ltd. O2. One 2 One Ltd. Orange plc. Oxford Radcliffe Hospital. Parmley Graham Ltd. Phoenix Electrical Company Ltd. Phoenix Natural Gas Ltd. Police Information Technology Organisation (PITO). Portcullis Oldham Ltd. Powergen plc. Queen Marys Sidcup NHS Trust. Railtrack plc. Rolls Royce Power Engineering plc. Royal Alexandra Hospital. Royal Brompton & Harefield NHS Trust. Royal Cornwall Hospital. Schrader Electronics Ltd. Scottish & Southern Energy plc. Scottish Power plc. Singer and Friedlander Ltd. Southern Derbyshire Acute Hospitals NHS Trust. Summit Healthcare Ltd. Swindon & Marlborough NHS Trust. Synectics Medical Ltd. Talkland Communications Ltd. Thames Water plc. The Carphone Warehouse. The Highways Agency. The National Assembly For Wales. The Royal Bank of Scotland. Transco plc. Transport For London. TXU Energi. Underwoods Electrical Distributors. United Bristol Healthcare NHS Trust. United Kingdom Passport Agency. United Utilities Water. University Hospitals of Leicester NHS Trust. Vodafone Ltd. Valmet Atlas plc. Winchester & Eastleigh Healthcare NHS Trust. 24 Seven Utility Services Ltd. Abacus Group plc. Addenbrookes NHS Trust. Addison Tube Forming Ltd. Alliance Medical Ltd. Alstom Signalling Ltd. Angel Trains Ltd. Argos Ltd. Bank of Ireland. Barclays Bank plc. BHS Leasing Ltd. Britannia Airways Ltd. British Airways plc. British Gas Trading Ltd. British Telecom. BSL Ltd. BT Cellnet Ltd. Catalyst Healthcare Ltd. Cincinnati Machine UK Ltd. Close Asset Finance. Coventry City Council. Department for Environment, Food and Rural Affairs (DEFRA). EPN Distribution Ltd. Euro Cellular (Distribution) plc. FAS Capital Ltd. Ford Motor Company Ltd. Framatome ANP. Freeman NHS Trust. George Wilson Industries Ltd. Global Crossing UK Ltd. Great Ormond Street Childrens Hospital. Gwent Healthcare NHS Trust. HCA International Ltd. Heller Machine Tools Ltd. HEX Operating Company Ltd. Highways Agency. HMK Technical Services Ltd. Home Office Immigration and Nationality Directorate (IND). HSBC Bank plc. Institute of Neurology. IPC Media Group Ltd. King Edward VIIs Hospital. Kettering General Hospital. Lanarkshire Acute Hospital NHS Trust. Lewisham Hospital NHS. Lloyds TSB Bank plc. Lothian University Hospital NHS Trust. Lucas Ltd. Marconi Communications Ltd. Metier Healthcare Ltd. Ministry of Defence. Moyle Interconnector plc. National Air Traffic Services Ltd. National Grid Group plc. National Savings and Investments. Nationwide Building Society. NHS Logistics Authority. Northern Electrical Ltd. npower Ltd. O2. One 2 One Ltd. Orange plc. Oxford Radcliffe Hospital. Parmley Graham Ltd. Phoenix Electrical Company Ltd. Phoenix Natural Gas Ltd. Police Information Technology Organisation (PITO). Portcullis Oldham Ltd. Powergen plc. Queen Marys Sidcup NHS Trust. Railtrack plc. Rolls Royce Power Engineering plc. Royal Alexandra Hospital. Royal Brompton & Harefield NHS Trust. Royal Cornwall Hospital. Schrader Electronics Ltd. Scottish & Southern Energy plc. Scottish Power plc. Singer and Friedlander Ltd. Southern Derbyshire Acute Hospitals NHS Trust. Summit Healthcare Ltd. Swindon & Marlborough NHS Trust. Synectics Medical Ltd. Talkland Communications Ltd. Thames Water plc. The Carphone Warehouse. The Highways Agency. The National Assembly For Wales. The Royal Bank of Scotland. Transco plc. Transport For London. TXU Energi. Underwoods Electrical Distributors. United Bristol Healthcare NHS Trust. United Kingdom Passport Agency. United Utilities Water. University Hospitals of Leicester NHS Trust. Vodafone Ltd. Valmet Atlas Plc. Winchester & Eastleigh Healthcare NHS Trust. 24 Seven Utility Services Ltd. Abacus Group plc. Addenbrookes NHS Trust. Addison Tube Forming Ltd. Alliance Medical Ltd. Alstom Signalling Ltd. Angel Trains Ltd. Argos Ltd. Bank of Ireland. Barclays Bank plc. BHS Leasing Ltd. Britannia Airways Ltd. British Airways plc. British Gas Trading These are just some Siemens customers Ltd. British Telecom. BSL of Ltd. BT Cellnet Ltd. Catalyst Healthcare Ltd. Cincinnati Machine UK Ltd. Close Asset Finance. Coventry with whom weve worked extensively Food during City Council. Department for Environment, and Rural Affairs (DEFRA). EPN Distribution Ltd. Euro Cellular (Distribution) plc. the last financial FAS Capital Ltd. Ford year. Motor Company Ltd. Framatome ANP. Freeman NHS Trust. George Wilson Industries Ltd. Global Crossing UK Ltd. Great Ormond Street Childrens Hospital. Gwent Healthcare NHS Trust. HCA International Ltd. Heller Machine Tools Ltd. HEX Operating Company Ltd. Highways Agency. HMK Technical Services Ltd.HomeOfficeImmigrationandNationality Directorate (IND).

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Our mission is to bring value to our shareholders by developing and manufacturing world class products, designing and running complex systems and projects, and tailoring our services to our customers.

Siemens is the name and know-how behind thousands of the worlds biggest projects. Working in partnership with our customers, we help them achieve the performance goals and service standards that make their businesses a success. Siemens: pioneering innovations for a better way of living and working.

Business overview

Business overview The world is a very different place, economically and politically, since 11 September 2001. It is currently experiencing the most serious slowdown in global economic activities for 30 years. Manufacturing, in particular, is at a low ebb. While the UK has so far weathered the storm better than many of our European neighbours, it would be complacent to assume that we will continue to do so without being vigilant and taking tough countermeasures early. The reputation of the corporate world has also been badly damaged during the past year following several high profile accounting scandals. The loss of an organisations reputation represents a betrayal of its shareholders and customers, and generations of employees who have helped to build that reputation. As a company whose own roots date back to 1843, and whose name has become a byword for innovative ideas that permeate virtually every aspect of daily life, no-one understands this better than Siemens in the UK. We are committed to conducting our business transparently and equitably. An excellent year for Siemens in the UK We have reported our highest ever profit and increased turnover for the financial year just ended. Some businesses truly excelled. However, it would be fair to say that a significant proportion struggled with tough market conditions. Siemens in the UK achieved earnings before tax and interest of 143 million, beating its EBIT budget by 14 per cent (excluding the effect of structural changes, such as the sale of the metering products business and Siemens Network Systems). The two strongest contributors to this were our telecommunications and medical businesses. Turnover showed a healthy growth of 10 per cent, with the main contributors being Siemens Business Services and Siemens Transportation Systems.
s s Our Economic Value Added (EVA) result, calculated by subtracting the cost of capital from profits, and which we regard as our ultimate performance indicator, was 28 million well above our budget and double the previous years EVA.

Our strategy of maintaining a broad business base, encompassing both manufacturing and services, has paid off in minimising the impact of global economic events. Satisfied customers remain the key to our success Siemens reputation for innovative solutions backed by thoughtful customer service has undoubtedly helped the company win a number of contract extensions from existing customers and some notable new orders.
s Siemens Dematics 53 million contract from Sainsburys to build two major new automated food storage and distribution facilities, each handling 12,000 different products daily, and 60 per cent of which will have to be despatched to stores within hours of being received. s The Police Information Technology Organisation has extended its successful nine-year partnership with Siemens Business Services with a new four-year agreement for technology upgrade, maintenance and support services worth a total of 21 million. s Siemens Power Transmission and Distributions major

order worth in excess of 20 million for the supply and maintenance of control and protection systems for more than 40 high voltage electricity transmission substations owned and operated by National Grid. To sum up, it has been an exceptional year for Siemens in the UK all the more remarkable given the prevailing economic conditions.

Alan Wood Chief Executive Siemens Holdings plc

We have reported our highest ever profit and increased turnover for the financial year just ended

It would be complacent to assume that we will continue to weather the economic storm without being vigilant and taking tough countermeasures early

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Working with our customers


Siemens products and services help customers in many different sectors to increase their operational efficiency and achieve ambitious performance goals. Here are just a few of our success stories of 2002
Reducing police response times South Yorkshire Police awarded Siemens Communications a contract worth around 1.3 million to bring together six call centres into a single multimedia contact centre that can prioritise calls, improve communication with officers on the beat and help the Force achieve faster response times. Monitoring water quality online United Utilities awarded a five-year, 5 million contract to Siemens Automation and Drives to provide online monitoring technology that will enable local and remote control of process equipment at sewage and water treatment plants across the north west.
v Automating food distribution Siemens Dematic has started work on contracts valued at over 50 million to build two new automated food storage and distribution facilities for supermarket giant Sainsburys in Birmingham and London. The new centres will speed up instore shelf-filling, reduce the need for manual sorting and increase the speed of distribution.

Reading more meters Powergen awarded Siemens Energy Services an additional contract, worth around 1 million per year, to read its customers meters and process the data for billing purposes.

Increasing road safety Land Rover awarded Siemens VDO a four to five-year order, worth up to 10 million a year, for its tyre pressure monitoring system. As around 80 per cent of high-speed tyre blowouts are caused by slow punctures, this technology plays an important role in improving road safety.

Mapping out the future for online orders Ordnance Survey signed a five-year contract with Siemens Business Services for consultancy services and a software solution that will pave the way for more of its mapping products to be sold online.

Improving rail communications Corning Communications Systems awarded a 6.5 million contract to Siemens Transportation Systems for radio communications systems for the Channel Tunnel Rail Link. This includes a mobile communications system that uses global positioning satellite technology to give the precise location of trains to signal operators.

Controlling the electricity grid National Grid placed an order worth over 20 million with Siemens Power Transmission and Distribution to provide control and protection equipment at over 40 of its electricity substations. A five-year service agreement is also included in the deal.

Powering Heathrows terminal five For Heathrows new terminal five, Siemens Power Transmission and Distribution pressed ahead with designing and constructing a highvoltage network, which will be owned and operated by London Electricity Services.

Serving more NHS patients Siemens Healthcare Services signed a Private Finance Initiative (PFI) deal to supply and maintain medical equipment across the Airedale NHS Trusts estate in West Yorkshire. The agreement, worth more than 12 million over 15 years, is the first of its kind to modernise existing hospital facilities.

Cushioning our landing on Mars Roke Manor Research is playing a crucial role in the British-led effort to land an unmanned spacecraft Beagle 2 on Mars. It has developed a radar altimeter trigger to measure the precise height at which gas bags should inflate in order to cushion its landing on the planets surface.

Putting more trains on track Siemens Transportation Systems announced it is to provide Arriva Trains Northern with eight additional open car saloons under a contract worth 6 million, building on a similar order placed by the train operating company 12 months previously.

Pumping oil around the UK The British Pipeline Agency awarded Dickinson Integrated Solutions, now part of Siemens Automation and Drives, a 1 million contract to supply equipment for the 200-mile underground pipeline that pumps oil from Shells refinery in Cheshire to London.

Web-enabling building systems Siemens Building Technologies invested in a project to manage the building systems in 40 Marks & Spencer stores over the web. This will enable it to run air handling units and chillers at optimum levels and remotely solve faults, saving the company time, energy and money.

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Information and Communications


Siemens is a world leader in the information communications industry. We provide technologies, applications and services ranging from nextgeneration networks to mobile communications as well as IT and business services.

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London

09:26
Reading
Siemens mobile is Chelsea FCs official sponsor and has launched a pre-pay club branded mobile phone. Siemens offers a wide range of products to help people do business on the move, including a tri-band mobile phone. Siemens technology enables call centres throughout the UK to increase their customer service levels.

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Durham

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London

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Siemens enables police officers throughout the UK to access information on the Police National Computer in the war against crime.

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Siemens services over 30 per cent of bank and building society cash machines in the UK.

Information and Communications


Siemens Business Services
Siemens Business Services is one of the UKs largest providers of IT and business services to both public and private sector organisations. Customers such as Barclays Bank, the Immigration and Nationality Directorate, National Savings and Investments, the UK Passport Service and the Vehicle Inspectorate rely on Siemens for outsourcing, IT managed services, solutions and support. Police Information Technology Organisation Access to information is vital in the war against crime. The Police National Computer is an indispensable intelligence resource used by forces around the country. It stores nearly 50 million vehicle records, 6.2 million criminal records and details of over 100,000 stolen items of identity-marked property. Siemens Business Services has worked with the Police Information Technology Organisation (PITO) for nine years to maintain the system at the cutting edge of computer technology. Recently, when a dramatic increase in transaction rates required a swift upgrade, Siemens carried out the work and minimised service disruption. We have had a long and successful relationship with Siemens and we work very well together, says Phillip Webb, PITOs Chief Executive. The fact that the company has been able to consistently provide technical solutions to satisfy our needs reassured us that we would get the good service and solution that we wanted. With all large IT projects you imagine there are going to be problems, but it went off remarkably smoothly. It was quite a difficult project because the computer is used 24 hours a day, 365 days a year and we had to continue providing an effective service throughout the upgrade. The work was well planned and well executed, starting and finishing on time. Not only has the upgrade given us more processing and disk capacity, its also given us a breathing space of three to four years in which to assess our future business demands and how the computer should meet them.

We felt that Siemens had listened to us and was intuitive to our requirements
Paul Mullins, Chief Executive, National Debtline

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Birmingham
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The National v Debtline will have handled around 50,000 calls using Siemens technology in just one year.

We have had a long and successful relationship with Siemens and we work very well together
Phillip Webb, Chief Executive, Police Information Technology Organisation

Siemens Communications
Siemens Communications offers a full choice of technology and service solutions from simple telephony through to full network outsourcing. It manages telecommunications networks for companies including Ford Europe, the Met Office and Seeboard. National Debtline Talking through a problem with someone sympathetic and knowledgeable can be an enormous relief, as the clients of the National Debtline would undoubtedly testify. The telephone helpline, which provides free advice to people with debt problems, is just about to conclude a year-long pilot project which has seen its service expand from four to 36 members of staff. Over the year the helpline will have handled approximately 50,000 calls, each one lasting on average around 16 minutes. The average for a bank or insurance call centre is two to three minutes, says Chief Executive Paul Mullins. However, we operate very differently and dont work to a script. Were clientdriven, as people who ring us up need to talk at their own pace.

National Debtlines newly expanded service required more sophisticated technological support and Siemens Communications won the tender to install a new system. We felt that Siemens had listened to us and was intuitive to our requirements, and appreciated that we are not IT specialists, says Paul Mullins. We were also comforted by Siemens willingness to work on the software aspect in partnership with another company, debt solution specialists Payplan, to make sure the solution was right for us. The modern telephony is much more efficient and less time is spent waiting for a call to be put through. But most important of all, were now helping an additional 20 per cent of clients per advisor, because the system is more efficient and gets information to us in a quicker and more accessible way.

Siemens has been helping to maintain the Police National Computer, which stores 6.2m criminal records, for nine years.

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FACT: Over 10 million new passports have been processed by Siemens Business Services secure, automated system in just four years.

FACT: Siemens produced the first communications server to be approved for connection to a new, secure digital radio system for the UKs emergency services.

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Information and Communications


Siemens Datatrak
Siemens Datatrak provides vehicle tracking and information systems to customers that operate in the field services, logistics management and vehicle security sectors, as well as to passenger transport organisations and the emergency services. Its technology is used both to help foil car thieves and to give organisations a real-time picture of the exact location of their vehicles. Siemens Datatraks customers include Avis, Kwik-Fit, Securicor, Staffordshire Ambulance Service and Wessex Water. From December 2002, Siemens Datatrak became part of the Siemens VDO Trading business in the Transportation group. Volvo Construction Equipment Volvo Construction Equipment has been using Siemens Datatraks vehicle security system for the last four years. The company supplies around 60 different types of machine to the construction industry, including excavators and articulated haulers. Its fleet of 100 vans is essential to ensure that it can service and repair these machines throughout the UK.
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If a thief does manage to get past the immobiliser in one of Volvos vans and tries to drive it away or load it onto a trailer, details of its location, direction of travel and speed are automatically sent to Siemens Datatraks 24-hour national monitoring centre and the Police are alerted. The system has proved an effective crime deterrent. Since it was installed, Volvo Construction Equipment has not lost a single vehicle.

FACT: Every Ferrari imported into the UK is fitted with Siemens vehicle tracking technology.

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Nottingham
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The Siemens A50 was Oranges best-selling prepaid handset in the fourth quarter of 2002.

Since installing Siemens Datatraks automatic vehicle location system eight years ago, Staffordshire Ambulance Service has consistently been the best performing ambulance service in the UK.

Siemens Information and Communication Mobile


Siemens Information and Communications Mobile is Europes second largest mobile phone manufacturer, with a product range that includes innovative mobile phones, personal digital assistants, cordless handsets and wireless modules. The mobile networks business offers operators a wide range of products and services, from base stations and switching systems to intelligent networks. Its playing a key role in the creation of the third generation network, currently being built in the UK by telecom operator Hutchison 3G. Orange Mobile phone sales traditionally rocket at Christmas, and one of Orange UKs best-sellers in 2002 was Siemens Information and Communication Mobiles new A50 model. Much of the A50s appeal to the 16-24 age group lies with its fresh and contemporary styling, ease of use and value for money. Orange UK buys in and brands phones from a number of manufacturers and distributes them through its own shops and through independent retailers such as Carphone Warehouse. Being first-to-market, as we were with the A50, gives Orange great presence with customers and consumers and generates extra sales, says Matthew Kirk,Head of Device Category Management.
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This meant that the A50 was available exclusively on the Orange network for two weeks, a period which was actually extended because the Orange and Siemens teams delivered it ahead of the scheduled date. It was our best-selling prepaid handset in the last quarter of 2002. Siemens and Orange set up a joint virtual team dedicated to the A50s launch. According to Matthew Kirk: Our working relationship was very close, not least because of the level and quality of effort and resources that Siemens devoted to the launch and marketing activity. Siemens also had a direct link back to the Orange product creation side a crucial factor to the early and successful launch of the A50 and unusual with mobile manufacturers. Siemens was clearly very serious about our relationship. The launch process with mobile suppliers is always quite tricky and this rates as one of the big successes.

08:52
St Andrews
v

:36 05Stafford
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Mini Siemens GSM phone tags are helping scientists at St Andrews University to learn why only half of the 35,000 grey seal pups born annually around Britains coastlines make it to their first birthday. Glued harmlessly to their

fur, the tags record and phone home location, diving and breeding information that is difficult to obtain by other means, thus enabling better understanding about their survival and mans impact on the marine ecosystem.

Our working relationship was very close, not least because of the level and quality of effort and resources that Siemens devoted to the launch and marketing activity
Matthew Kirk, Head of Device Category Management, Orange

Automation and Control


Siemens is the worlds largest supplier of products and solutions in the industrial and building technology sectors. We enable our customers to optimise their business and production processes, which in turn helps them improve their profitability and efficiency.

:42 07 Manchester

17:45
Hull

Siemens traffic management technolgy minimises delays and maximises capacity in most UK towns and cities.

Around 75 per cent of mail posted in pillar boxes in the UK is handled by Siemens sorting equipment.

16:37
Edinburgh

Siemens has been providing fire detection systems at Londons Docklands since 1989.

15:13
London

The latest traffic controller technology from Siemens will help Transport for London to improve traffic flow in Trafalgar Square.

:17 11 London

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43,000 bottles of Highland Spring mineral water are produced every hour using Siemens technology.

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Automation and Control


Siemens Traffic Controls
Siemens Traffic Controls helps to keep traffic flowing through towns and cities and along motorways throughout the world, saving drivers time, improving safety and reducing pollution. Its product portfolio includes traffic signals, controllers and detectors for pedestrian crossings and road intersections, urban traffic control systems and car park guidance systems. Kingston upon Hull City Council Kingston upon Hull City Council, in common with most local authorities, has to run a financially tight ship, with social services, education and transportation all competing for their share of limited funds. Responsibility for managing the citys complex traffic needs falls to Traffic Signals Manager Dave Carr. Its a job made easier, he says, since the installation in 1994 of SCOOT, the reactive traffic management system from Siemens Traffic Controls, which adjusts traffic lights according to the flow of traffic, minimising delays and maximising capacity. Without it my job would have been a lot harder. With four staff I can manage my areas traffic very well and the majority of that is down to a really good, reliable system. Good quality, proven products that can be integrated, supported by a first class maintenance contract have been fundamental to the smooth running of the citys traffic. Siemens has recently installed the traffic management infrastructure for Hulls new 45 million sports and events stadium. Located in the city centre, the 25,000 seat complex lies in the middle of two major radial routes and the road system will have to accommodate traffic travelling not only to the stadium but to and from Hull as well. Limited funds have meant that Dave Carr has to get best value and maximum effectiveness from the new Siemens system. Its all about having the appropriate strategies in place for managing traffic and a reliable and flexible traffic control system which can be fine-tuned and supplemented once we know exactly what were dealing with in terms of traffic demand.

We have a sense that Siemens is as proud of what we have achieved at Tate Modern and Tate Britain as we are ourselves
Peter Wilson, Tates Director of Projects and Estates

13:58
London
v Siemens intelligent building management system at Tate Modern maintains a constant temperature and level of humidity throughout the galleries. v

With four staff I can manage my areas traffic very well and the majority of that is down to a really good, reliable system
Dave Carr, Traffic Signals Manager, Kingston upon Hull City Council

17:46 Hull

Siemens Buildings Technologies


Siemens Building Technologies provides building management, fire detection and security systems and products to industrial, commercial and domestic customers. Tate When youre custodian of one of the worlds finest collections of 20th century and contemporary art, maintaining the perfect environment is critical for exhibits and visitors alike. Keeping people comfortable and the art in optimum condition is a challenge at Tate Modern, especially in a building that has as many visitors as ours, explains Peter Wilson, Tates Director of Projects and Estates. People introduce heat and dampness, especially when its raining, while paintings need a constant level of humidity, otherwise they contract and expand and eventually become damaged. The intelligent building management system installed by Siemens Building Technologies integrates and controls the heating and air conditioning systems to maintain a constant environment throughout the galleries. Peter Wilson has used Siemens products and expertise at the Tates London galleries, Tate Modern

and Tate Britain, for five years and values the relationship and mutual commitment that have grown over this period. Our projects tend to run over a very long timescale, so we need a range of products and a company that are going to be around in the long term. We want to be kept informed of innovative new products so we can upgrade and extend our systems. Equally, we need backward compatibility to accommodate existing products. Siemens has a good understanding of our business and realises that museums arent the richest organisations in the world. We have a sense that Siemens is as proud of what we have achieved at Tate Modern and Tate Britain as we are ourselves. They really feel part of it, and so theres a real sense of partnership.

Siemens technology manages the flow of traffic to and from Hulls new 45 million sports and events stadium and the city centre.

FACT: Fire detection systems from Siemens Building Technologies have been installed in all but one of the buildings at Canary Wharf.

FACT: Siemens manufactures and maintains more of the UKs road management infrastructure than any other company.
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Automation and Control


Siemens Automation and Drives
Siemens Automation and Drives supplies customers in many different industries with products and solutions that improve the productivity of their plants, factories and buildings. A wide range of companies, from automotive to chemical, machine building to paper production, and aerospace to quarries, use Siemens automation, process control, instrumentation and electrical distribution and home automation products. Its customers include GlaxoSmithKline, Pfizer and Rolls Royce. Highland Spring With sales of its top-selling natural mineral water set to soar by 40 per cent, Scottish company Highland Spring had to move quickly to upgrade its Perthshire bottling plant to cater for the increase in demand. In just three weeks, the plants three bottling lines were replaced by a fully integrated production control process, designed, installed and run by Siemens Automation and Drives under the project management of conveyor systems specialists Kensal Ltd. It was a very, very tight deadline, but everything went ahead as planned, recalls John Calderhead, Highland Springs Engineering Projects Manager. Ive had a good working relationship with Siemens over many years, and Siemens and Kensal evidently had a good one too, probably because of their familiarity with each other. The Siemens system is supported by a network and interface, which manage the various conveyor operations and shop floor communication. The fully automated system controls all the processes, from bottle-blowing to filling, labelling and packaging the bottles on pallets, ready for despatching to supermarkets and other retail outlets. Its been up and running extremely well for just over a year-and-a-half and production has increased from 25,000 to 43,000 bottles per hour, reports John Calderhead. While previously we had a lot of different control systems in use, standardisation has brought real benefits in quality control and reduced the number of spares we need to keep on site. We can also pinpoint faults online and spot where were losing production time, enabling us to address problems quickly.

07:43
Manchester

Siemens high-tech mail processing machines have been installed at Royal Mail sorting offices around the UK as part of a five-year, 150 million programme.

Ive had a good working relationship with Siemens over many years
John Calderhead, Engineering Projects Manager, Highland Spring

:49 16 Blackford

Siemens Dematic
Siemens Dematic specialises in logistics automation and designs, manufactures and implements warehouse and distribution solutions for customers such as Birds Eye Walls, Coca-Cola, Dairy Crest, DHL and Next. In addition, every major airport in the UK depends on baggage handling systems supplied by Siemens. Royal Mail Every day millions of letters criss-cross the country faster and more efficiently than ever, following the installation of 139 high-tech processing machines at Royal Mail sorting offices around the UK. Designed and built by Siemens Dematic, these mail processors integrate all the processes required to sort a bag of post, which is tipped into a machine at one end and then automatically sorted, stacked or bar-coded for further processing at other sorting offices. Like all projects it went through ups and downs, but were very pleased with it now, says Jerry Cope, Managing Director, Royal Mail Service Delivery, of the five-year, 150 million programme. The machines are working really well, the operators are pleased with them and theyre delivering the performance we require.

Weve always had an excellent working relationship with Siemens and theres a good degree of understanding on both our parts. Also, as a multi-cultural organisation, Siemens has access to so many different capabilities around the world, which in turn gives us the best of all worlds. One of the years highlights for Siemens was being awarded Royal Mails prestigious gold first class supplier award for overall project performance. Siemens delivered it right first time, says Jerry Cope. There was a really good relationship which, on top of delivering the project on time and to budget and cost, won them the award. The two companies good working relationship has led to other important projects, including the Heathrow Worldwide Distribution Centre, an automated distribution warehouse which will handle incoming and outgoing overseas mail.

FACT: Over 22,000 Siemens intelligent light fittings, which change the lighting levels according to the time of day, are in operation in the Canary Wharf tube station.

Siemens is helping Highland Springs production line to meet a 40 per cent increase in consumer demand for its natural mineral water.

Weve always had an excellent working relationship with Siemens and theres a good degree of understanding on both our parts
Jerry Cope, Managing Director, Royal Mail Service Delivery

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Transportation

Siemens is at the forefront of rail and automotive technology, helping customers to improve safety and comfort for drivers and passengers throughout the UK.

BAA plcs Heathrow Express trains were designed and built by Siemens, which also provides round-the-clock service to keep them safe, looking good and running punctually.

:35 19 London

09:38
Heathrow
Siemens trains will be the most modern on the UK rail infrastructure, according to our customer First Great Eastern.

Almost 3,000 accident data recorders from Siemens will be fitted to Metropolitan Police vehicles in London by the end of 2003.15police forces around the UK are now using this technology.

16:22
Holford

15:02
London

:52 13 Romford

Siemens will be assembling up to 30,000 cockpits for the awardwinning Range Rover every year.
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Siemens Heathrow Express trains are designed to ensure passengers enjoy a comfortable journey, and also to help BAA reduce road congestion around the airport by 3,000 vehicles every day.

Transportation

14:12
Sheffield
In what Dave Kaye describes as an innovative set-up, Siemens will also be providing a maintenance and repair service based at his companys Ilford depot, supported by First Great Eastern staff trained in Siemens fault-finding techniques. We have very high hopes and expectations for this train, he says. At the end of the day what customers want is a punctual, reliable service on trains that are safe and comfortable. We expect the Class 360 trains to give us that reliability theyre very customer friendly, fully air-conditioned and have an excellent interior layout. We have a superb working relationship with Siemens. Its been a proper partnership, not a case of a manufacturer telling us what we want. Weve raised issues with Siemens and they have taken them on board, and weve listened to their points too. In true partnership terms its been very, very good.

Siemens Transportation Systems


Siemens Transportation Systems operates at the forefront of rail technology, designing, manufacturing and maintaining train and signalling and communications systems to the highest safety standards. Angel Trains, Arriva Trains Northern, BAAs Heathrow Express and First Great Eastern have all placed orders and long-term maintenance contracts with Siemens. First Great Eastern Passengers travelling out of Londons Liverpool Street Station to the further reaches of Essex and Suffolk are in for a treat when award-winning operator First Great Eastern inaugurates its new fleet of state-ofthe-art Desiro Class 360 trains. Theyll be the most modern railway stock on the UK rail infrastructure quieter, safer and more reliable and accessible, says Dave Kaye, the companys Managing Director. Built by Siemens Transportation Systems, the trains replace the 25-year-old slam-door trains and should be fully operational for the 2003 summer timetable.

v Nearly every new car in the world has a Siemens product in it, including Land Rover s new Range Rover.

We have a superb working relationship with Siemens Weve raised issues which they have taken on board, and weve listened to their points too
Dave Kaye, Managing Director, First Great Eastern

:18 08 London

Siemens VDO
Siemens VDO Automotive supplies products and systems to the vehicle manufacturing industry, working in partnership with companies such as BMW, Ford, Honda, Land Rover, MG Rover, Nissan and Toyota. Siemens VDO Automotive has two major manufacturing locations in the UK. In Birmingham, it produces mainly cockpits and fuel systems, while at Telford it develops and manufactures fuel and air intake systems. Products ranging from vehicle spares and tachographs to car audio and multimedia navigation systems are also supplied by Siemens VDO Trading. Land Rover Land Rover has been producing its legendary fourwheel-drive vehicles for more than half a century. The companys impressive new Range Rover is already attracting accolades and awards and has come top in BBC Top Gear magazines best four-by-four category for 2002. Each vehicle is unique, tailored to a customers personal requirements from a shopping list of 90,000 variations.

First Great Easterns new Siemens trains are quieter, safer, more reliable and accessible.

FACT: Over 20 per cent of new passenger train orders have been secured by Siemens since the privatisation of the rail industry.
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Siemens VDO Automotive designed and now produces the cars complex cockpit and central console, which include the air conditioning and navigation systems. 28,000 of the ready-to-install units were assembled this year at Siemens Holford site in the West Midlands

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and delivered direct to Land Rovers own plant in nearby Solihull. Each unit is customised and turned round in half a shift, enabling Land Rover to work on a just-in-time basis, cutting down the amount of storage space required. The launch and initial production stage of the new Range Rover experienced a number of teething problems, recalls Steve Jones, Purchasing Director of Aston Martin, Jaguar and Land Rover. Operating as a team, Land Rover and Siemens managed to sort them out and now were working together very successfully. Siemens is meeting our delivery aspirations and the quality levels are very good. Siemens is doing a good job of what is a very large and challenging assembly. They have an innate level of expertise in the design and assembly of cockpits, which is an integral part of the car and quite a high selling point.

Siemens is doing a good job of what is a very large and challenging assembly
Steve Jones, Purchasing Director, Aston Martin, Jaguar and Land Rover

Power

Siemens Power Generation


Siemens Power Generation builds and services power plants in the UK and, following the restructure of Siemens Environmental Systems, it also offers a range of radiation monitoring sensors and systems. It helps customers such as Edison Mission, Innogy, Powergen, Seabank, Scottish & Southern Energy to ensure that their power stations are efficient and environmentally friendly. During the course of 2002, Siemens Power Generation acquired ICIS Technology, a leading IT solutions provider within the energy trading and power plant management markets.

Siemens Energy Services


Siemens Energy Services is now the largest independent supplier of metering services and technical support to the UK utility industry. It reads gas and electricity meters throughout the UK, ensures that they are maintained in good working order, processes customer data and handles the payment of bills. Almost 8 million households and businesses now receive metering services from Siemens Energy Services, which represents a significant increase in its market reach from 2001. It is a trusted partner of utility companies throughout the UK, including British Gas, Powergen, npower, Scottish Power and Scottish & Southern Energy. Following the restructuring of Siemens worldwide metering business in 2002, the UK metering products business was sold to Kohlberg Kravis Roberts.
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Siemens operates across the complete energy chain, from building and maintaining power stations to helping the UKs energy suppliers deliver electricity to homes and businesses efficiently, reliably and cost-effectively.

11:05
In addition to building new electricity substations for National Grid in London and Hertfordshire, Siemens is providing and maintaining control and protection equipment at more than 40 of its existing substations throughout the UK.
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Together with Siemens in Australia, Siemens Power Generation secured an order worth 10.3 million for the upgrade of six low-pressure turbines at Hazelwood Power Station in Victoria, Australia.

South Shields

:42 10 South Shields


Siemens Power Transmission and Distribution
Siemens Power Transmission and Distribution provides the technology to transfer electricity from the UKs power stations into homes and businesses. The business delivers complete turnkey solutions and services as well as products and systems, and works with all of the UKs regional electricity companies. National Grid Londons demand for electricity has been growing at a rate thats significantly above the national average, largely owing to the number of big computer systems being installed and the expansion in office and apartment developments, most of which require power-hungry air-conditioning facilities. National Grid is currently in the middle of a major reinforcement of its transmission system in central London to ensure that customers such as London Electricity can meet the demand. Central to this is a new 400,000 volt transmission circuit, housed in a 20km cable tunnel, under construction between Elstree, in Hertfordshire, and St Johns Wood in central London. Siemens Power Transmission and Distributions contribution is the new substation at Elstree. According to Jim Street,

:23 16 Newcastle

Siemens technology at London Electricitys Tooley Street substation powers most of the City of London, including City Hall, the official office of the Lord Mayor of London, opened in June 2002.

National Grids Project Manager: One of the major challenges with a project of this size is the coordination of the work between the contractors, in this instance Siemens, J Murphy & Son, who are constructing the tunnel, and ABB, who will install the cable and connect it into the Elstree substation. Timing is critical if Siemens doesnt deliver the substation on time then we cant commission the new circuit into London. Fortunately, in terms of project delivery Jim Street rates Siemens as one of National Grids best-performing suppliers, citing as an example Siemens work on the substation in West Ham, in east London. It included the provision of a new transformer, which is on programme to be commissioned two months ahead of schedule. We need companies like Siemens who have demonstrated the capability to deliver the complete range of high voltage substation projects to time and cost.

18:42

London

We need companies like Siemens who have demonstrated the capability to deliver the complete range of high voltage substation projects to time and cost
Jim Street, Project Manager, National Grid

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Medical

A&M Hearing
A&M Hearing has been designing, manufacturing and supplying hearing instruments for almost a century. A&M Hearing is the sole distributor of Siemens hearing instruments in the UK, supplying hearing aid specialists and NHS audiology departments. To support NHS audiology departments across the UK in making the transition from analogue to digital technology, A&M Hearing has been providing them with the latest digital hearing aids, along with free computers, software and training.

Siemens Healthcare Services


Siemens Healthcare Services provides IT and managed services and solutions, helping to bring 21st century technology to UK hospitals and supporting medical staff in their life-saving work. It is a lead partner in the consortium that won a 64 million Private Finance Initiative (PFI) deal to build and run an extension at Barnet Hospital in London. As well as installing the latest medical scanning equipment, telecommunications and IT systems, Siemens is responsible for running and maintaining all of these services for 30 years.

Siemens offers a broad spectrum of products, solutions and services for integrated healthcare. Our offerings include innovative technologies that increase the accuracy of diagnosis and therapies that minimise patients discomfort.

:30 13 Cambridge
v The radiology department at Addenbrookes NHS Trust has been able to double the number of patients it sees using Siemens new CT scanners. v

A&M Hearing is the largest supplier of hearing aids to the NHS.

Siemens Medical Solutions


Hospitals throughout the UK depend on systems and services from Siemens Medical Solutions, the UKs number one supplier of medical technology. The business provides diagnostic imaging, therapy and critical care equipment, such as CT and MRI scanners, mammography machines, x-ray systems, radiotherapy systems and ultrasound machines. Addenbrookes NHS Trust CT scanners use X-rays to acquire cross-sectional images, which are one-dimensional axial slices through a patients body, and have become an invaluable diagnostic tool in most UK hospitals. The University Department of Radiology at Addenbrookes NHS Trust performs more than 10,000 scans a year. It has recently purchased two top-of-the-range CT scanners from Siemens Medical Solutions for neurological, body and research work, complementing an existing Siemens scanner. Professor Adrian Dixon, the departments head, has been working with Siemens equipment for 20 years and is particularly impressed with the image quality of the new scanners and the greater accuracy this brings to diagnosis. Clinicians and radiologists visiting the department from other centres are amazed by the pictures they see, says Professor Dixon. Hitherto wed been limited to one-dimensional axial images, but

Siemens new scanners let us look at three-dimensional images, which enable you to examine volume of tissue rather than slices. Nobody had quite prepared us for the high quality of the three-dimensional images they are just breath-taking. Were only just beginning to explore all the things these new machines can do. Equally important, with a total of three modern machines weve been able to almost double overnight the number of patients we see and were not yet at full capacity. The doctors looking after the patients benefit enormously because we can investigate a persons condition much more comprehensively and they, in turn, can be more confident about the advice they then give.

v The quality of the images produced by Siemens scanners brings greater accuracy to diagnosis of a wide range of medical conditions.

Nobody had quite prepared us for the high quality of the threedimensional images they are just breath-taking
Professor Adrian Dixon, Head of the University Department of Radiology, Addenbrookes NHS Trust

13:35
Cambridge
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FACT: 50 per cent more patients have been treated by the radiology department at the University Hospital of Lewisham in London since it replaced its 10 year-old system with a new Siemens multislice scanner.

Research and Development


Roke Manor Research is one of the UKs leading commercial R&D laboratories, working for the public and private sectors as well as for other Siemens businesses.

Lighting

12:18
Southhampton
v These images taken from a live video recording were sent successfully over a third generation high frequency wideband network in a trial that could pave the way for improved safety and security for passengers

Osram supplies lamps to the retail, wholesale and equipment manufacturing sectors. It specialises in general lighting solutions, automotive lighting, special photo-optic lamps and display lighting.

19:32
Birmingham
v The Millennium Point centre in Birmingham was able to recoup the capital costs of installation of Siemens energy-saving lighting technology in four months. v

on flights in European skies by allowing live recordings from the cabin and cockpit to be relayed to ground staff.

Roke Manor Reasearch


Specialising in communications, electronic sensors and internet technology, Roke Manor Research works with Government and customers including BAE Systems, BMW, Cable & Wireless and Psion. Eurocontrol Europes skies have never been busier, and as a consequence the aviation industry is running short of radio spectrum for communications. When Eurocontrol, the European Organisation for the Safety of Air Navigation, began exploring the potential of third generation wideband technology as an alternative medium, it so happened that Roke Manor Research was already working on a system which, with some modifications, could be used as a test bed. 3G wideband technology enables you to use higher frequencies than are currently used and has lower transmitter power requirements, explains Geoffrey Bailey, Head of Eurocontrols Communications Unit. We wanted to minimise costs by using, wherever possible, existing products and systems developed for other industries, in this instance the mobile telephone industry.

The trial took place in December 2001on board one of QinetiQs BAC1-11 research aircraft. We were able to transmit live video of activities in the cockpit and cabin to the ground station, use the internet and make telephone calls, recalls Geoffrey Bailey. One never expects things to work on board aeroplanes first time round, but this trial was a great success. We are currently reviewing the results and obtaining market feedback from end-users, including some of the major airlines, the military and the US Federal Aviation Administration. By working together we have given real credibility to the concept of 3G wideband technology as an aviation tool. Roke Manor Research has been very flexible and offered good advice, especially when suggesting cost beneficial solutions. The company has achieved a lot in a very short time.

Osram
Innovative lights from Osram have helped illuminate the British Library, the British Museum and P&O Cruises luxury ship, the Aurora. Around one in three UK vehicles has Osram headlight bulbs and nearly nine out of ten cinemas use Osram lights for projection. In addition, its extensive range of light bulbs can be purchased in many leading high street stores including Bhs, Habitat, House of Fraser, Ikea and Robert Dyas. Millennium Point centre Osrams advanced energy-saving technology was selected by the high-tech Millennium Point centre in Birmingham. The low-power, long-life Light Emitting Diodes (LEDs) enabled the capital costs of installation to be recouped within four months. The centre houses the regions first large format IMAX Theatre, Birminghams museum of science and technology and several commercial retail, office and leisure outlets.

20:02
Manchester
v

Roke Manor Research has been very flexible and offered good advice, especially when suggesting cost beneficial solutions. The company has achieved a lot in a very short time
Geoffrey Bailey, Head of Communications, Eurocontrol

FACT: LEDs from Osram last up to 100,000 hours 50 times longer than low voltage lamps.

Shatter-proof, lowpressure halogen lamps, supplied by Osram, were part of a unique display of paper lanterns carried by schoolchildren to create

stunning lighting effects during the closing ceremony of the Manchester 2002 XVII Commonwealth Games.

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Financial Services

15:16
Heathrow

Affiliated Companies

Siemens Financial Services expertise in business funding solutions spans a wide variety of sectors and the company is fast becoming a leader in the e-finance solutions market.

Siemens holds interests in a number of highly successful joint ventures. Each company provides specialist products or services and is a leading expert in its field.

10:11
Eynsham
Siemens groundbreaking new oven uses halogen light to speed up cooking by as much as 72 per cent.
v

South African Airways leasing agreement with Siemens for new call centre technology provides the flexibility for future system upgrades with minimum outlay.

95 per cent of magnets produced by Oxford Magnet Technology in the UK go overseas.

Siemens Financial Services


Siemens Financial Services offers a range of funding solutions and equipment leasing services, providing customers with an alternative to purchasing capital goods and services. Its specialist funding solutions are used for a diverse range of assets, including IT, telecommunications, plant, office and healthcare equipment. South African Airways South African Airways busy call centre team handles every kind of customer query imaginable, including the ones youd expect about fares, reservations and flying times. When an increase in the call rate signalled the need for a more sophisticated telephone system, buying the equipment outright no longer made good business sense, given that technology depreciates so quickly and usually needs upgrading after a year or two. After considering all the payment options Customer Services Manager Tim Atkinson decided that funding the 190,000 project from the operational budget was the most practical. The new infrastructure for the companys central London and Heathrow sites was financed through Siemens Financial Services under a seven-year lease rental agreement.

Technology changes so quickly, and a lease rental agreement allows us to spread our operational costs over a convenient period of time, explains Tim Atkinson. The Siemens team was extremely professional and had the deal wrapped up in a week. Siemens was the most competitive company we looked at weve not only funded the new system with minimum outlay but its a very flexible arrangement which allows us to upgrade whenever it becomes necessary. For example, we are probably integrating our internet and telephone services in the next two to three years and all well have to do is adjust our existing lease agreement to finance the new equipment.

Siemens Domestic Appliances Siemens Domestic Appliances, the UK arm of Bosch Siemens Home Appliances, markets a wide range of kitchen appliances, including washing machines, dishwashers, fridges, freezers, ovens, microwaves, hobs, cooker hoods and vacuum cleaners. Its products are sold through independent kitchen specialists, electricity companies, mail order companies and high street stores, such as Allders, Comet, Harrods, House of Fraser, John Lewis and Selfridges. Fujitsu Siemens Computers Fujitsu Siemens Computers is a 50:50 joint venture company, launched in 1999 after Siemens and Fujitsu decided to merge their European computer operations. It offers a full range of computing solutions, from the worlds smallest notebooks through to the industrys most powerful server systems. The company supports customers needs for secure computing infrastructures for e-business as well as providing solutions for 24-hour mobile internet access. In 2002, the Inland Revenue awarded Fujitsu Siemens Computers a multi-million pound order for 15,000 space-saving desktop PCs.

The Siemens team was extremely professional and had the deal wrapped up in a week
Tim Atkinson, Customer Services Manager, South African Airways

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Insight Consulting Siemens holds a 50 per cent controlling stake in Insight Consulting, the provider of services and solutions for information security, business continuity and risk management. Insights customers come from the banking, insurance, retail, telecoms, NHS, police and government sectors. The company was among the first to be certified to the information security standard BS7799 and helped Smile, the UKs full-service internet bank, to be the first in its sector to be registered to this British Standard kite mark. Mobisphere A 51:49 joint venture between Siemens and NEC, Mobisphere was launched in 1999. Engineers from both companies form the core of Mobisphere, which focuses on the development, manufacture and logistics of radio infrastructure products for UMTS, the third generation mobile communications standard. Oxford Magnet Technology Over a third of the MRI scanners installed in hospitals around the world have at their heart a superconducting magnet designed and manufactured by Oxford Magnet Technology. The company has won six Queens Awards in recognition of its technological achievements and export success. Formed in 1982, the company is 51 per cent owned by Siemens and 49 per cent owned by Oxford Instruments.

are we like ? What to work with?


We felt that Siemens had listened to us and was intuitive to our requirements
Paul Mullins, Chief Executive, National Debtline

Living and working in our community


With four staff I can manage my areas traffic very well and the majority of that is down to a really good, reliable system
Dave Carr, Traffic Signals Manager, Kingston upon Hull City Council

Since 1843, Siemens has been developing innovative technology to enhance people's lives in the UK. At the same time we strive to
1843 Siemens sells the first patent for the electroplating process in the UK 1851 Siemens presents the first water meter in the UK at the Great Exhibition in London 1866 Siemens patented the electric dynamo, enabling it to develop the UKs first electric street lighting in 1881 and the first public electric railway in 1883 1870 Siemens laid the first telegraph cable from Ireland to the USA

be a responsible employer, support the communities in which we operate and help young people to develop their potential.
1952 Siemens and the Post Office began work on the first model electronic telephonic exchange in the UK 2001 Siemens made the first phone call in the world over UMTS, the third generation mobile communications network 2002 Siemens miniature ultrasound catheter is used for the first time in the UK for pioneering heart surgery

The Siemens team was extremely professional and had the deal wrapped up in a week
Tim Atkinson, Customer Services Manager, South African Airways

We need companies like Siemens who have demonstrated the capability to deliver the complete range of high voltage substation projects to time and cost
Jim Street, Project Manager, National Grid

We have a sense that Siemens is as proud of what we have achieved at Tate Modern and Tate Britain as we are ourselves
Peter Wilson, Tates Director of Projects and Estates

Nobody had quite prepared us for the high quality of the three-dimensional images they are just breathtaking
Professor Adrian Dixon, Head of the University Department of Radiology, Addenbrookes NHS Trust

Our working relationship was very close, not least because of the level and quality of effort and resources that Siemens devoted to the launch and marketing activity
Matthew Kirk, Head of Device Category Management, Orange

We have a superb working relationship with Siemens Weve raised issues which they have taken on board, and weve listened to their points too
Dave Kaye, Managing Director, First Great Eastern

Siemens is doing a good job of what is a very large and challenging assembly
Steve Jones, Purchasing Director, Aston Martin, Jaguar and Land Rover

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Putting excitement into engineering For a second year running, Siemens Automation and Drives and Lego organised a competition for pupils from 12 Manchester schools to design a robot that could battle it out in a football tournament against opposing teams. The event was part of a five-year educational programme that has successfully encouraged more students to take the systems & control module of the Design and Technology GCSE. Lighting up childrens imaginations At the Southampton Science Fair, Roke Manor Research showed 200 primary school children that electronics is fun by helping them to design a face made out of Light Emitting Diodes (LEDs). The business also gave 20,000 worth of exhibits and expertise to Hampshires new Intech Centre, which will provide an interactive science and technology learning experience for around 150,000 visitors each year. Partnering with local schools Siemens Traffic Controls in Poole strengthened its partnership with Ashdown Technology College. The business has provided 5,000 sponsorship to the college and developed a series of electronic control and design lectures and activities for around 300 students.
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Celebrating scientific success The Sir William Siemens Medal programme, launched in 1993, aims to recognise the achievements of young scientists and engineers in the UK. Fourteen of the countrys top universities and 14 schools and colleges from around the UK take part in the scheme, which awards young people who have excelled in their studies with a cheque for 250 and medal.

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Our Executive Management Board

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1 Alan Wood Chief Executive Siemens plc 2 Peter Merrick Director of Corporate Personnel Siemens plc 3 Donald Weir Managing Director Siemens Energy Services

4 Jeff Addison 7 Matthew Houston Managing Director Managing Director Siemens Financial Services Siemens Dematic 5 Graham Walker Managing Director Siemens Communications 6 Ulli Schliefer Managing Director Siemens Automation and Drives 8 Michael Cannon Managing Director Siemens Building Technologies 9 Clark MacFarlane Managing Director Siemens Power Generation

10 Christoph Urban Chief Financial Officer Siemens plc 11 Peter Muecke Managing Director Siemens Power Transmission and Distribution 12 Ian Moyes Managing Director Siemens Information Communication Mobile

13 Gordon Lovell-Read Chief Information Officer Siemens plc 14 Gnter Dombrowe Group Managing Director Siemens plc 15 Kevin Tutton Managing Director Siemens Transportation Systems 16 Thomas Borghoff Managing Director Siemens VDO Automotive

17 Tom White Managing Director Siemens Business Services 18 David Carter Managing Director Siemens Traffic Controls 19 Ron Smith Director of Corporate Strategy Siemens plc 20 Juergen Maier Managing Director Siemens Shared Services

21 Gerard Gent Head of Legal Services and Company Secretary Siemens plc 22 Fionnuala Tennyson Director of Corporate Communications Siemens plc 23 David Cullinane* Managing Director Fujitsu Siemens Computers 24 Siegmar Proebstl* Managing Director Osram

25 Paul Stein* Managing Director Roke Manor Research 26 Richard Crowe* Managing Director Siemens Ireland *Not available at the time of photography.

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Main locations of Siemens businesses in the UK


Siemens plc Siemens House Oldbury, Bracknell Berkshire RG12 8FZ 01344 396000 Siemens Traffic Controls Sopers Lane, Poole Dorset BH17 7ER 01202 782000

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What do you think?

Medical
A&M Hearing Alexandra House Newton Road Manor Royal, Crawley West Sussex RH10 9TT 01293 423700 Siemens Healthcare Services Siemens House Oldbury, Bracknell Berkshire RG12 8FZ 01344 396000 Siemens Medical Solutions Siemens House Oldbury, Bracknell Berkshire RG12 8FZ 01344 396000

Information and Communications


Siemens Business Services Siemens House Oldbury, Bracknell Berkshire RG12 8FZ 01344 784300 Siemens Communications Brickhill Street Willen Lake, Milton Keynes Buckinghamshire MK15 0DJ 01908 855000 Siemens Datatrak Location and Information Systems Wiltshire House, County Park Shrivenham Road, Swindon Wiltshire SN1 2NR 01793 500100 Siemens Information and Communication Mobile Siemens House Oldbury, Bracknell Berkshire RG12 8FZ 01344 396000

Transportation
Siemens Transportation Systems 2 Queen Annes Gate Buildings Dartmouth Street London SW1H 9BP 020 7227 4423 Siemens VDO Automotive The Broadlands 120 Holford Drive Birmingham B6 7UG 0121 344 2000 Siemens VDO Automotive Halesfield 25, Telford Shropshire TF7 4LP 01952 683600 Siemens VDO Trading 36 Gravelly Industrial Park Birmingham B24 8TA 0121 326 1200

Insight Consulting Churchfield House 3 The Quintet Churchfield Road Walton-on-Thames Surrey KT12 2TZ 01932 241000 Mobisphere 100 Longwater Avenue Green Park, Reading Berkshire RG2 6GJ 01189 865700 Oxford Magnet Technology Wharf Road Eynsham, Witney Oxfordshire OX29 4BP 01865 880880 Siemens Domestic Appliances Grand Union House Old Wolverton Road Wolverton Milton Keynes Buckinghamshire MK12 5PT 01908 328400 This document can also be found at www.siemens.co.uk/ annualreview To request additional printed copies, please e-mail info@siemens.co.uk or call 01344 396336.

Were really interested in your views about our Annual Review and Siemens in general. For every completed questionnaire received, well donate 1 to one of the charities listed below. Please select the charity you would like to support.
All donations (plus VAT) go to the NSPCC Trading Company Limited, which covenants all its taxable profits to NSPCC. Registered Charity No. 216401.

You can also give us your feedback online at www.siemens.co.uk/annualreview or by e-mailing info@siemens.co.uk. Thank you for your time. Alan Wood, Chief Executive, Siemens plc I am a current Siemens customer employee supplier shareholder

potential Siemens customer employee supplier shareholder

journalist student other (please state)

Lighting
Osram Osram House Waterside Drive Langley, Slough Berkshire SL3 6EZ 01753 484100

What is your industry sector? (please tick one box) Local/Central Government Utilities/Energy/Water Health/Social/Public Services Manufacturing/Engineering Education/Training Business Services Transport/Travel Communications Banking/Finance/Insurance Computer Distributor/Wholesale Distribution Retail/Wholesale Distribution Other (please state) I am mainly interested in a (please tick as many options as applicable) general overview of Siemens other (please state) specific Siemens business (please state which one) Please select three words that you feel best describe the Siemens UK Annual Review document? Interesting Conservative Visually attractive Text-heavy Professional Old-fashioned Stylish Customer-focused Easy to read Boring Well written Reliable Untrustworthy Informative Poorly designed High quality To what extent do you agree or disagree with the following statements about Siemens generally? Agree Agree Disagree Disagree Dont Know Strongly Strongly Siemens is a trustworthy company provides good customer service is innovative produces reliable products and services is a good corporate citizen We welcome any additional comments you would like to make about our Annual Review or company.
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Power
Siemens Energy Services Woodyard Lane Off Lambourne Drive Wollaton Nottinghamshire NG8 1GB 01159 066000 Siemens Power Generation CA Parsons Works, Shields Road Newcastle upon Tyne NE6 2YL 0191 276 1188 Siemens Power Transmission and Distribution Sir William Siemens House Princess Road Manchester M20 2UR 0161 446 5000

Finance
Siemens Financial Services Townsend House 160 Northolt Road, Harrow Middlesex HA2 0PG 020 8422 7101

Automation and Control


Siemens Automation and Drives Sir William Siemens House Princess Road Manchester M20 2UR 0161 446 6400 Siemens Automation and Drives Standard Drives Siemens House Varey Road, Congleton Cheshire CW12 1PH 01260 283000 Siemens Building Technologies Hawthorne Road, Staines Middlesex TW18 3AY 01784 461616 Siemens Dematic Beaumont Road, Banbury Oxfordshire OX16 1QZ 01295 274600

Research and Development


Roke Manor Research Roke Manor Old Salisbury Lane Romsey Hampshire SO51 0ZN 01794 833000

Affiliated Companies
Fujitsu Siemens Computers Venture House Arlington Square Downshire Way, Bracknell Berkshire RG12 1WA 01344 475000
Design SEA Print The Colorhouse Photography Main: Michael Heffernan Additional: Richard Sibley Mars Lander: All rights reserved Beagle 2 Seal: Laurie Campbell City Hall: Adam Hinton

If you would like us to contact you about specific Siemens products or services, please state which ones and provide your contact details.

34 www.siemens.co.uk

Would you be happy if the Siemens UK Annual Review was only available on our website and not in printed format? yes no

RESPONSE SERVICE NATW457

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Alan Wood Chief Executive Siemens plc Siemens House Oldbury Bracknell RG12 8HA

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