Siemens Aktiengesellschaft Austria Annual Report
Transcription
Siemens Aktiengesellschaft Austria Annual Report
Annual Report Siemens Aktiengesellschaft Austria Key performance figures 1994–1998 ›› Siemens AG Austria 1993/94 1994/95 1995/96 1996/97 1997/98 +/–% on previous year New orders 19,662 20,535 24,126 25,129 (1,815.0) 26,724 (1,930.2) +6.3 Sales 20,365 20,486 21,530 23,245 (1,678.9) 24,223 (1,749.6) +4.2 35.1% 35.2% 36.1% 36.7% +2.2 Exports (as a % of total sales) Capital expenditure1) 36.0% 642 856 736 666 3.2% 4.2% 3.4% 2.9% 2.9% 10,027 9,793 9,684 9,873 9,586 Personnel costs 8,301 8,397 8,678 9,037 as a % of total sales 40.8% 41.0% 40.3% 38.9% Research and Development expenditure 3,751 4,064 4,507 4,840 (349.6) 236 237 240 244 (17.6) as a % of total sales Employees (as of 30 Sept.)2) Employee training expenditure (48.1) (652.7) 735 9,254 (53.1) +10.4 –2.9 (668.4) +2.4 5,219 (377.0) +7.8 275 (19.9) +12.7 38.2% In Mio. ATS (Mio. Euro) ›› Siemens Group Austria 3)4)5)6) 1993/94 1994/95 1995/96 1996/97 1997/98 +/–% on previous year New orders 32,381 36,535 43,085 49,468 (3,573.0) 49,726 (3,591.6) +0.5 Sales 33,217 38,153 37,984 43,062 (3,110.3) 47,306 (3,416.8) +9.9 Exports (as a % of total sales) 41.2% 46.3% 48.9% 51.9% Capital expenditure1) 1,738 1,964 2,969 2,968 5.2% 5.1% 7.8% 6.9% 4.8% Employees (as of 30 Sept.)2) 18,234 20,448 20,173 20,728 20,414 Personnel costs 14,542 (1,050.3) 15,079 (1,089.1) as a % of total sales 54.3% (214.4) 2,286 +14.9 (165.1) –23.0 –1.5 13,235 14,250 14,294 as a % of total sales 39.8% 37.3% 37.6% 33.8% Research and Development expenditure 4,290 4,590 5,556 6,016 (434.5) 6,522 (471.1) +8.4 288 302 308 306 (22.1) 339 (24.5) +10.8 Employee training expenditure +3.7 31.9% In Mio. ATS (Mio. Euro) 1) Property, plant and equipment plus equipment leased to customers 2) Excluding employees on leave for military duty, on leave of absence and apprentices 3) Starting with fiscal year 1994/95 also includes MKM Budapest, STG Budapest, Siemens Ljubljana, Siemens Zagreb, Siemens Bratislava, ANF Data Prague, SWH Bratislava, SYSDATA Budapest, EH-Schrack Components 4) Starting with fiscal year 1995/96 also includes Kablo Bratislava, SKT Bratislava, Duna Kábel Budapest 5) Starting with fiscal year 1996/97 also includes SNI Bratislava, without Alex. Friedmann Ges.m.b.H 6) Starting with fiscal year 1997/98 also includes Landis & Staefa (Austria) AG, Landis & Gyr Leit- und Fernwirktechnik Gesellschaft mbH, Siemens-Leasing GmbH & Co, no longer includes Austrodent Handelsges.m.b.H., i-center Elektrogroßhandel GmbH & Co KG, Knoblich Licht Ges.m.b.H. 1 Euro = ATS 13.8450 (mean rate as of 30 September 1998) Contents Key performance figures A model for the future Report of the Supervisory Board Supervisory Board, Managing Board Management Report The Company The Group Subsidiaries and Associated Companies Research and Development, Production » » » » » » 2 5 6 12 14 18 Review of Operations Energy A model for the future. “Leadership now” – Siemens Austria’s new business model shows that the company has set itself plenty to do for the future. A large, global company that wants to meet successfully the many different Each of our eight basic principles will be presented to you in detail in this annual report – by Siemens staff, without whom it challenges the future brings, needs an appropriate model which it can act on. It needs would be impossible to realise our set aims. One of these core principles – perhaps the most important – is that “Everything a corporate philosophy where aims are defined and visions are set out. Whether is possible” – if we work together on reaching our goals and carry out our corporate visions as “People-oriented solutions”. it’s “Partnership creates success”, “Creating tomorrow’s world”, “Team works” or In the interests of Siemens customers and Siemens employees all over the world. Siemens Electrical Appliances Industry Transportation Information Technology Components Communications Health Care Cables and Wiring Regions Siemens in neighbouring countries Siemens worldwide Forum In the supplement Balance sheet of Siemens Aktiengesellschaft Austria Income Statement Notes to the Financial Statements » » » » » » » » » » » » 24 27 30 32 36 38 42 47 50 56 62 64 ›› 2 Report of the Supervisory Board Over the course of the reporting period, the Report of the Supervisory Board Prof. Dipl.-Phys. Dr.-Ing. Karlheinz Kaske deceased Supervisory Board convened four meetings and was Gyr from ELEKTROWATT (alongside Siemens taking over name “Siemens Pensionskasse AG” with equity capital of ELEKTROWATT’s worldwide business activities in the field ATS 50,000,000 (Euro 3,611,412) and its head office in of building engineering), at our Supervisory Board Meeting Vienna. Siemens AG Austria is the sole shareholder. presented with a detailed account of affairs by the It is with great sadness that we have to report that Managing Board of Siemens AG Austria. Along with Prof. Dipl.-Phys. Dr.-Ing. Karlheinz Kaske, Chairman of the of 26 February 1998 we approved the take-over of all The most significant resolutions that were passed at the company’s business performance, the capital Supervisory Board of Siemens AG Austria from 1982 to shares of Landis & Gyr Energiemanagement (Austria) our Supervisory Board Meeting of 29 June 1998 concerned investments requested by the Managing Board for the 1993, passed away on 27 September 1998. GmbH, Vienna, by Siemens AG Austria. Consolidated meter restructuring Siemens activities in Hungary by transferring activities are to be continued by “Siemens Metering AG Siemens AG Austria’s interest in Siemens Rt. Budapest Mr. Kaske played a decisive role in building up the company Austria for Meters and Electronic Systems” (subsidiary of (a 5.38% stake) and in Siemens Telefongyar Kft. Budapest and its subsidiaries. During his time of service, corporate Siemens AG Austria) registered in Vienna. (100% stake) to Siemens AG Berlin and Munich. current business year and issues regarding company structure were considered. In his ten years as Chairman of the Supervisory Board, activities were greatly expanded, especially due to significant acquisitions both in the domestic market and abroad. At this meeting we gave our consent to the sale of 1998 we agreed to the reorganisation of Siemens Austria concrete terms we approved the sale of our stakes in IT and communications technology (in line with the global LiWeSt located in Linz; in Attersee/Salzkammergut located reorganisation of Siemens) as of 1 October 1998 into in Vöcklabruck; and in AFREG, which is registered in Salz- three new units: burg, to Oberösterreichische Kraftwerke AG (Upper Austrian “IuC-Networks” (ICN; in particular the core areas Power Stations company) and to the St. Pölten Kabelfern- of the divisions Public Communications Systems sehgesellschaften (cable television companies) located in for Corporate Networks, Private Communications St. Pölten; and our interest in Kabelsignal of Maria Enzers- Systems, the network business of the Private dorf to Energieversorgung Niederösterreich AG (Lower Aus- Communications division and of Siemens Nixdorf trian power supply company). Furthermore we gave our Informationssysteme GmbH), preliminary approval to the sale of Siemens SGP Verkehrs- “Product Business” (ICP; the product-oriented technik GmbH’s 95.6% stake in SKT, a cable TV company in business of the Private Communications Systems Bratislava. division and of Siemens Nixdorf Informations- At the Supervisory Board Meeting of 26 February 1998 Dipl.-Vw. Dr. Heinrich v. Pierer, Vorsitzender des Aufsichtsrats der Siemens Aktiengesellschaft Österreich At our Supervisory Board Meeting of 15 September Siemens AG Austria’s cable television companies. In systeme GmbH) and we also gave our consent to Siemens AG Austria’s studio “Siemens Business Services GmbH” ing the Supervisory Board, was appointed as its Honorary business being moved into the activities of “BFE Studio (SBS; the solutions and Services business of Chairman. We will treasure his memory. und Medien-Systeme GmbH”, located in Vienna. At the Siemens AG Austria and of Siemens Nixdorf same time, it was approved that the rest of the activities in Informationssysteme GmbH). We owe our great thanks to this man, who, after leav- Changes in group structure the audio and video systems division of Siemens AG Austria should be wound up step-by-step. At our Supervisory Board Meeting of 13 November Further, we approved that the activities of Bautechnik 1997 we set up a Supervisory Board Committee made up Linz be removed from Siemens AG Austria and operate as of Dkfm. Radomski (Chairman), Dkfm. Dr. Becker and Hans a wholly-owned subsidiary, with these activities being sold Judmann (nominated by the Works Council), with the off in due course. purpose of checking and preparing the approval of Siemens AG Austria’s year-end financial statements. In accordance with the basic agreement for Siemens to purchase the worldwide metering business of Landis & On presentation of the necessary company agreements Restructuring of Siemens Austria’s cabling activities, in particular in view of the sale of Siemens worldwide power-cable activities to Pirelli. By way of a contract concluded on 16 July 1998, taking effect as of 1 October 1998, Siemens AG Berlin and at the Supervisory Board Meeting of 26 February 1998 we Munich sold its worldwide power-cable activities to Pirelli finally gave our approval to the founding of a company (subject to antitrust approvals). This general agreement is pension fund for Siemens AG Austria with the company to be implemented in individual countries – and particularly ›› 3 ›› 4 Report of the Supervisory Board Supervisory Board, Managing Board as far as Siemens AG Austria’s cabling activities are con- 30 September 1998, Siemens Beteiligungen AG, Zurich, cerned – by way of local agreements. All business assets transferred its 74% interest in Siemens AG Austria to used in the power cable business belonging to the Siemens AG, Berlin and Munich. Supervisory Board Delegates of Works Council: Auditor’s certification Dr. Paul Dax, Honorary Chairman Hans Judmann Siemens group were sold off, meaning that it was necessary for the activities of “Österreichische Kabelwerke” to be split into power-cable and data-cable activities. Furthermore, Österreichische Kabelwerke GmbH’s 80.5% stake in The accounting procedures, the financial statements MKM, the Hungarian cable producer, is to be transferred and the Management Report were examined and approved to Pirelli after the data-cable actvities have been divested. without qualification by KPMG Alpen-Treuhand GmbH, Likewise, Kablo Bratislava spol s r.o. (a wholly-owned sub- Certified Public Accountants and Tax Consultants, Vienna. sidiary of Österreichische Kabelwerke GmbH) was acquired The Supervisory Board has examined and approved the by Pirelli. financial statements and the Management Report. The At our Supervisory Board Meeting of 15 September point value for the bonus premium of the 1996/97 business 1998 we acknowledged the Managing Board’s report on year was set by the Supervisory Board at 82 schillings negotiations held with Pirelli concering the local agreement (5.92 euro). In total this amounted to a sum of 90.6 million for Siemens Austria’s cabling activities. Official approval of schillings (6.54 million euro), which was paid out as special the transfer of these activities is still outstanding. thanks from the company to our employees. Against the background of the continued difficult The Supervisory Board would like to thank all employ- Prof. Dipl.-Phys. Dr.-Ing. Karlheinz Kaske, Honorary Chairman, deceased 27 September 1998 Dipl.-Vw. Dr. Heinrich v. Pierer, Chairman Peter Stuppacher Alfred Senter Josef Utzig Dkfm. Dr. Walter Wolfsberger, Vice Chairman Dkfm. Dr. Erich Becker ees for their performance and all employee representatives Dr. Rudolf Gruber Siemens Austria, we gave our consent to Österreichische for their constructive cooperation. Dipl.-Ing. Johann Haider After final completion of our audit no objections were Gerhard Pfeiffer Dipl.-Vw. Dr. Josef Staribacher, Vice Chairman economic situation for the remaining data-cable activities of Kabelwerke’s data-cable (NK) activities being taken over by Friedrich Hagl Managing Board KR Dkfm. Karl Hollweger Dipl.-Ing. Albert Hochleitner, CEO Siemens AG Austria, as well as consenting to the sale raised. Hence the financial statements as of 30 September of Österreichische Kabelwerke’s interests in Dörfler Kabel- 1998 have been approved in accordance with § 125 para. 2 Prof. Dr. h.c. Manfred Mautner Markhof Dr. Peter Flicker werk GmbH, Klosterneuburg (100%), in Duna Kabel Kft, of Austrian Corporation Law; the Supervisory Board Dipl.-Ing. Othmar Pühringer Mag. Alfred Ötsch Budapest (97.5%) and in Haryana Telecom Ltd., Haryana, endorses the proposal of the Managing Board with regard India and the winding up of the remaining data-cable activ- to the distribution of net earnings. Dkfm. Jürgen Radomski Dipl.-Ing. Eduard Uhl Obersenatsrat Dr. Karl Skyba Dr. Anton Wais ities of MKM (Hungarian cable producer). Vienna, December 1998 Transfer of the 74% stake of Siemens Beteiligungen Supervisory Board AG, Zurich, in Siemens AG Austria to Siemens AG, Berlin and Munich. For the sake of completeness, within the scope of this report we would like to set out that, with effect from Dr. Heinrich v. Pierer Chairman of the Supervisory Board ›› 5 ›› 6 Management report f o r t h e 1 9 9 7 / 9 8 f i n a n c i a l y e a r Management report f o r t h e 1 9 9 7 / 9 8 f i n a n c i a l y e a r ›› Composition of the workforce Siemens Group Austria According to the latest forecast made by WIFO, the For 1999 the economic research institutes expect beat our target figures significantly, both for new orders Siemens AG Austria R&D 4,775 3,373 Production 7,425 1,425 Austrian economic research institute, real GDP rose by growth rates of 2.8%, which are again higher than and turnover. The main factor responsible for this favourable Installation, Maintenance, Service 3,447 2,121 3.3% in 1998, representing the highest growth rate those in the European Union. For the first time since development was business in the domestic market which Sales & Distribution 3,083 1,726 is being boosted through the expansion of digital mobile Administrative Areas 1,684 941 Apprentices 444 260 20,858 9,846 since 1991. Unemployment will remain almost 1994, unemployment is expected to fall (to 4.4%). unchanged at 4.5%, a figure which is once more The inflation rate should remain at its extraordinarily low telephone systems. On the export side, particularly notable significantly lower than the European average. level, mainly due to the decline in prices of raw material. contracts were concluded in Croatia and Slovakia. Inflation is continuing to fall and is at an historic low It is further predicted for 1999 that private consumption, of 1.0%. These particularly good economic figures whose growth was hampered in 1998 by a tendency positive business in terminals has led to above-target are mainly due to significant increases in both exports towards saving, will play a stronger part in economic figures for both new orders and turnover. Business in ter- were carried out. As of the beginning of the 1998/99 and capital expenditure. growth. minals is characterised by over-proportional growth in business year, following the takeover of ELEKTORWATT the mobile phone market, which is however experiencing AG (respectively Landis & Gyr) by Siemens AG, Siemens a fall in prices due to strong competition. Austria’s metering business is now consolidated in In the Private Communications Systems division, In connection with the gradual phasing out of activities in the Audio and Video Systems division, a concept for Business performance at Siemens AG Austria New orders totalled ATS 26.724 billion (Euro 1.931 In the Transportation division, the brisk demand for pas- discontinuing business in sound engineering was drawn senger cars, rail vehicles and rail infrastructure equipment up, while the studio engineering field of business was ensured satisfactory performance. The division was able to shifted to BFE Studio- und Mediensysteme GmbH in achieve its targets for new orders and turnover. Particular Vienna, with effect from 1 June 1998. mention should be made of completing 120 double-decker From an organisational point of view we have rearranged Dipl.-Ing. Albert Hochleitner, Chairman of the Board Siemens Aktiengesellschaft Österreich “Siemens Metering AG Austria” . cars in co-operation with the Austrian Federal Railways the activities of our information and communications workshops and a contract awarded to a consortium divisions and the resulting reorganisations formally came headed up by Siemens AG Austria, by the Vienna Public into force on 1 October 1998. Siemens Nixdorf Infor- Transport authority (Wiener Linien) to develop a prototype mationssysteme GmbH was integrated into Siemens AG for the third generation of the Viennese underground. Austria with effect from that date and, together with the Business at the competence centre for rail vehicles in Graz Public Communications Networks and Private Communi- developed particularly favourably and in the year under cations Systems divisions, forms the three new I&C review contributed more than one third to the turnover of divisions, namely ICN (Information and Communication Siemens SGP Verkehrstechnik GesmbH. Business in power Networks), ICP (Information and Communication Products) line construction which was switched to Siemens Power- billion) in the year under review, up 6.3% on the previous as well as Siemens Business Services GmbH, which is a lines GmbH & Co KG in the previous financial year also year’s figures. Total turnover amounted to ATS 24.223 separate legal entity. developed favourably in its initial year. billion (Euro 1.750 billion), 4.2% higher than in the previous In the Energy division, the market was shaped by stiff The market for consumer electronics in Austria is going year. Target figures for both new orders and turnover were competition and – as in previous years – a lack of invest- through a difficult phase. In contrast to the European trend, thus exceeded to a considerable extent. Export sales were ments on the part of the power supply companies. In spite a decline of around 4% is expected in the Austrian market. up 2.2% on comparable figures of the previous year. of this, we were still able to reach our targeted level of The Siemens Electrical Appliances division was able to business as the trend towards plant automation has further expand on its position in the market and maintain our expectations for the year under review. In the Public continued. Furthermore, numerous modernisation projects its level of business of the previous year despite the Communications Networks division we were able to for power stations and network and distribution plants market trend. However, due to the fact that figures for Business in communications again outperformed ›› 7 ›› 8 ›› 9 Management report f o r t h e 1 9 9 7 / 9 8 f i n a n c i a l y e a r New orders in ATS billion “brown goods” are still contained in last year’s figures, also under pressure from competition. On the export side R&D in the year under review. Most of total turnover in this division for the year under review will in particular it was not possible to meet our expectations, our R&D activities are carried out by the be below that of the previous year. which was the reason for carrying out changes in organi- Program and System Engineering division sational structure. In July 1998, Siemens AG, Munich and (PSE), whose total turnover in the year so the high levels of business of previous years remained. Berlin concluded negotiations with Pirelli Cavi e Sistemi under review was up 10% on the previous In the field of plant construction the year under review was S.p.A. Within OEKW GmbH the agreement will affect the year. This positive performance was mainly due In the Industry division target figures were reached and Turnover in ATS billion 50 50 40 40 30 30 20 20 10 10 93/94 94/95 95/96 96/97 Siemens AG Austria 97/98 93/94 94/95 95/96 96/97 Siemens Group Austria shaped mainly by a moderate level of overall construction production and installation of power cables, which will be to a good level of demand in the areas of development activity and by an investment squeeze on the part of public taken over by Pirelli. OEKW data cable manufacturing will for mobile radio products, telecommunications and for authorities. We achieved our targets in our security and be discontinued at the end of 1998, with sales and distri- banks and insurance companies. PSE continued its inten- alarm systems business, with notably favourable perform- bution activities having been taken over by the ICN division sive support in developing the successful EWSD system. ATS 4.1 billion/Euro 296.1 million) were achieved. The ance in particular in the field of intelligent video systems as of 1 October 1998. Further, PSE has become the largest centre dealing with number of employees amounted to 1,620 in the year under GSM client projects on the basis of IN services. PSE review. and integrated access control solutions. Targets for the year Good performance in the components sector continued under review for the field of “Production and Logistics in the period under review. The Components division was successfully concluded its worldwide network integration Systems” could not be achieved due to various investment able to outperform its targets both for new orders and for for the IRIDIUM satellite project. projects being postponed. turnover. In particular this was due to positive develop- The Development Centre for Electronics, EZE for short, In Croatia, Siemens d.d. achieved new orders of around ATS 1.26 billion (Euro 91.0 million) and a turnover of ATS 1 billion (Euro 72.2 million). The number of employees rose in ments in business in component mounting equipment and made its mark as a development centre for mobile termi- the period under review from 467 to 496. This good per- for consolidating building activities through the acquisition favourable business supplying passenger car relays and nals by developing, among other things, a new generation formance continued to be due to telecommunications, of the industrial arm of ELEKTROWATT AG were fulfilled. connectors for the car industry, where electronic compo- of GSM engines. There was also a good level of demand in which accounted for almost half of Siemens d.d.’s turnover. In future, Siemens AG Austria building business activities nents are being used more and more. the area of development for call centre solutions and Results in the fields of automation, medical engineering consulting for computer-telephone integration. We are and building engineering were also satisfactory. From an organisational point of view, the preconditions in the segments of building automation (today Landis & The market situation for the health care business was Staefa), security engineering, project business/installation characterised by a reduction in investment on the part of particularly proud to report that the world’s first fingertip engineering and facility management will be consolidated public health authorities and a squeeze on investment sensor system has now laid the foundation for using (Euro 70.1 million) and a turnover of around ATS 1.6 billion in “Siemens Building Technologies Austria”, which made its activities among practising doctors. In spite of this, the innovative technologies in the low-cost sector. (Euro 115.6 million) were realised according to plan. Large first appearance on 1 October 1998 as a “virtual company” . Medical engineering division still managed to reach its The number of R&D employees at Siemens Austria AG In Slovakia new orders of around ATS 970 million projects were carried out in the field of power supply, target figures for the year under review. This was primarily amounted to 3,400 in the 1997/98 financial year, represent- particular mention should be made of the construction of in the year under review from the Austrian mechanical due to successful attempts to open up new market seg- ing a slight rise on last year’s figure. a “GUD” power station in Košice, the construction of a engineering and plant construction sector having to cope ments with new services, in particular in the field of soft- with new and complex challenges on the world market. ware for hospitals. The Automation and Drive Engineering division profited The positive developments in business in numeric controls We can also add that in the year under review Siemens and drives for machine tools also continued in the year AG Austria set up a contributory company pension fund under review, this being due to a general market upswing (Siemens Pensionskasse AG) which is also open to partici- on the one hand and successful implementation of pation by subsidiaries of Siemens AG Austria. SINUMERIK and SIMODRIVE systems on the other hand. Overall performance of our metering and process Research and Development engineering business improved significantly in comparison with the previous year. In the 1997/98 financial year, business in cables was Siemens AG Austria spent ATS 5.219 billion (Euro 377 million) (ATS 4.840 billion/Euro 350 million in 1996/97) on waste incineration plant in Bratislava and the completion of Regional responsibility for Bosnia-Herzegovina, the “GUD” power station in Bratislava. At the end of the Croatia, Slovakia and Slovenia year under review there were 222 employees. In Slovenia, Siemens d.o.o., with almost 50 employees, As in previous years, we were extremely satisfied managed to strengthen its market position substantially in with business performance in all four countries for which various segments, with a turnover of around ATS 500 mil- Siemens AG Austria has regional responsibility. Within the lion (Euro 36.1 million). In particular, the successful comple- scope of regional responsibility, new orders amounting to a tion of a telecommunications network for the Slovenian total of ATS 5.6 billion (Euro 404.5 million) (compared with Railways and the contract for manufacture of 30 local ATS 5.2 billion/Euro 375.6 million in 1996/97) and turnover passenger trains in the Ljubljana area as well as for of ATS 4.5 billion (Euro 325.0 million) (compared with 50 goods wagons should be mentioned. 97/98 ›› 10 Management report f o r t h e 1 9 9 7 / 9 8 f i n a n c i a l y e a r Business in the year under review was also successful The liabilities side shows, in relation to the balance Management report f o r t h e 1 9 9 7 / 9 8 f i n a n c i a l y e a r For the 1998/99 financial year we estimate that there in Bosnia and Herzegovina. The good performance here sheet total, an almost unchanged net equity ratio (12.5% will be less expenditure on restructuring than in previous was mainly due to contracts in the field of medical engi- without retained earnings, compared with 12.4% in the years since substantial measures have now been taken on neering, in the power supply and power stations business previous year). The appropriate balance sheet provision was this front. as well as in public communications systems, for example liquidated in the amount of the transfer of employees’ with the three EWSD centres going into operation. pension entitlements to the Siemens pension fund Proposal for the distribution of net income (Pensionskassen AG). Investments The result from ordinary activities was slightly down on the previous year (ATS –74 million/Euro –5.3 million). Investments in property, plant and equipment amount- The reason for this was a decrease in the financial The Managing Board of Siemens Aktiengesellschaft Austria proposes the payment of a dividend of 26% of share capital and a special dividend of ATS 400 million ed to ATS 735 million (Euro 53.1 million), 10.4% up on result, due to the necessary valuation adjustment of the (Euro 28.9 million). The Managing Board furthermore comparable figures of the previous years (ATS 666 mil- equity holding in OEKW GmbH, whereas the result in proposes that the balance of the net profit be carried lion/Euro 48.1 million). operating activities improved considerably. forward as a reserve available for use at any time. Prospects for the 1998/99 financial year: Vienna, November 1998 Investments in property, plant and equipment mainly included equipment leased by the Private Communications Systems Division, further expansion and upgrading of our in-house communications systems and completion work on the Vienna Electronics Plant. ATS 1.685 billion (Euro 121.7 million) was invested in The Managing Board For 1998/99, Siemens AG Austria again plans to increase the volume of its business substantially. We expect this increase to come about in particular in the acquiring equity interests or raising our shareholdings in Communications, Industry and Energy divisions as well existing affiliated companies. There were substantial as at the Vienna Electronics Plant and in the PSE division. Dipl.-Ing. Albert Hochleitner increases in equity capital at Kabel- und Drahtwerke AG, In the Transportation division we will maintain our high Chief Executive Officer Vienna, Wiener Kabel- und Metallwerke GmbH, Vienna, turnover level by processing the large backlog of orders. Siemens SGP Verkehrstechnik Ges.m.b.H. and at Siemens As far as Information and Communication are concerned, s.r.o. in Bratislava. Mention should be made of we can expect dynamic business performance due to considerable new investments which include the Siemens the preparations we have made in accordance with Pensionskassen AG, BFE Studio- u. Medien Systeme market conditions. In the field of Energy, the difficult Ges.m.b.H. and Landis & Gyr Energiemanagement competitive conditions in the domestic market will Ges.m.b.H., Vienna. continue in the 1998/99 financial year which is why we want to carry on expanding our presence in neighbouring Assets, Financial and Earnings Position: countries. In the Industrial and Systems sectors we want to continue on our course of offering more complex The balance sheet total fell in the year under review by ATS 2.028 billion (Euro 146.5 million), i.e. 6.5%. On the assets side this was mainly due to a reduction solutions as a universal supplier as well as being suppliers of technology. We expect the positive trends in automation engineering and in facility management – which, in current marketable securities through transfer to the as mentioned, was set up as of 1 October 1998 – to Siemens Pensionskassen AG. continue. ›› 11 ›› 12 The Company The Company Chief Executive Officer Dipl.-Ing. Albert Hochleitner Executive Board BdL/P, PE, PA, U, BM, UK PR, WR11, PSE, EWW, BG, Responsible for Technical Management of all Regional Organisations Dr. Peter Flicker Mag. Alfred Ötsch Dipl.-Ing. Eduard Uhl Dr. Anton Wais ATD/PL, A&D, B, MED, SBT, PD, SITEC, SGS, L&S EL, FRW, OI, KAM, UK W, U TopPlus, STR, Responsible for Commercial Management of all Divisions, Commercial Management of Regional Organisations and the Regions ICN, ICP, CCN,REG, SBS EV/KWU, VT Ö, SE, VT5, SGP VT Divisions Information and Communication Networks ICN Ing. Dietmar Appeltauer Dipl.-Ing. Herbert Götz Mag. Dr. Harald Wasserburger Joint Venture OESE Siemens — Alcatel AOSA1) Power Transmission and Distribution, Power Generation EV/KWU Systems Engineering & Technical Services; Production & Logistics Systems ATD/PL Siemens Building Technologies Dipl.-Ing. Gottfried Schuster Ing. Dkfm. Johann-Ludwig Wurzer Dipl.-Ing. Werner Beier Dr. Wilfried Stuckart Landis & Staefa Automation and Drive Engineering A&D 3) Dipl.-Ing. Heinz Felsner Dr. Edwin Schulz Ing. Wolfgang Morrenth Ing. Mag. Rudolf Preslicka Siemens Gebäude Management & Services GmbH SGS1) Traffic Engineering Austria Ing. Hans Paul VTÖ Ing. Dkfm. Gernot Kindelmann Ing. Mag. Friedrich Pressl Dipl.-Ing. Helmut Triplat6) Christian Knie Information and Communication Products ICP Ing. Franz Geiger Dr. Karl Jesacher Siemens Business Services Ges.m.b.H. Ing. Mag. Herbert Wegleitner Components and Special Engineering B Siemens Powerlines GmbH & Co. KG SPL1) Ing. Franz Geiger Dr. Karl Jesacher VT52) Stepán Kotva Jiri Svanda SWH spol. s r.o., Bratislava1) Peter Prónay Peter Babinec Dr. Thomas Habenreich Dkfm. Dr. Michael Jeitler Vienna Electronics Plant EWW Project Development PD Siemens SGP Verkehrstechnik GmbH SGP VT1) Erwin Chladek Johann Pinisch Ing. Helmut Brunner Mag. Arnulf Wolfram Dr. Albert Felbauer Large-scale Interdivisional Projects BG Ing. Mag. Friedrich Pressl Dipl.-Ing. Hans M. Schabert Siemens Electrical Appliances Wolfgang Horak Management Office/ Group Press BdL/P Human Resources Administration Dr. Heinz Dorfwirth Mag. Gerhard Hirczi Dr. Hans-Dieter Kneissl Slovakia Ing. Rudolf Hiermann SRE Croatia Slovenia Bosnia-Herzegovina Ing. Wolfgang Hirzi KRO SLO BIH Heinz-Werner Häfner4) KAM Mag. Alfred Ötsch José-Carlos Oliveras Ing. Mag. Christian Zwickl-Bernhard Service Departments Corporate Development (Strategy, Auditing, TopPlus, Quality Management) U Key Account Management Budapest1) Dipl.-Ing. Dr. Siegfried Glatz Mag. Heinrich Mensdorff-Pouilly Dipl.-Ing. Rainer Kehl Mag. Manfred Dönz Competence Center Information-Technology & Networking CCN Dipl.-Ing. Eduard Uhl Mag. Dr. Harald Wasserburger ANF Data spol. s r.o., Prague1) SYSDATA Kft., MED Heavy Rail L & S1) Bau- u. AnlagenerrichtungsGes.m.b.H. SITEC1) Medical Engineering SBS1) Regional Responsibilities for Slovakia, Croatia, Slovenia, BosniaHerzegovina REG Dipl.-Ing. Udo Scheiblauer Rudolf David Ing. Karl Mörk Mag. Gerhard Schenk Harald Reitler Ing. Walter Nitsch Rudolf Wölfl Ing. Wolfgang Kropik Rudolf Schütz Program and System Engineering PSE SBT Key Corporate Departments Human Resources Development Industry and Insurance Dipl.-Ing. Dr. Alexander Hartig Dkfm. Hans Wehsely5) Industry and Public Contractors Dipl.-Ing. Manfred Völker Organisation and Data Processing Banks, Insurance Companies and other services Dkfm. Dr. Christoph Langer-Hansel Ulrich Bleicher Verbund and Provincial Power Supply Companies Dipl.-Ing. Wolfgang Flandorfer Ing. Heinrich Sageder Ing. Karl-Heinz Söhner PA FRW Dr. Alfred Zahorak Materials Management EL Dr. Josef Kinast PE Taxes, Legal Services STR Karin Schneiderbauer Equity Investment Management Finance and Accounting ›› 13 Dr. Horst-Günther Ludwig BM Corporate Communications UK Mag. Peter Baumgartner OI Co-ordination of Economic Area No. 11 WR11 Alternative Operators Wolfgang Horak SE Dkfm. Franz Schlechta Mag. Erich Scheithauer Regional Organisations/Key Account Managers Graz Dipl.-Ing. Gerhard Geisswinkler Karl Komatz 1 ) separate legal entity Klagenfurt Ing. Mag. Wilhelm J. Lauer Prof. Ing. Hans M. Tuschar 2 ) Siemens AG operational sector Linz Ing. Wolfgang Laub Gerhard Gruber 3 ) until 31 Oct. 1997; Industrial Sales Products & Systems ASI/AUT Salzburg Dipl.-Ing. Dr. Peter Korczak kom. Gerhard Gruber 4 ) Head of quality control reports direct to the Chief Executive Officer Innsbruck Ing. Paul Warbanoff Mag. Wolfgang Richter 5 ) Spokesperson for Österreichische Kabelwerke GmbH, Vienna Bregenz Ing. Heinz Weber Peter Vogel 6 ) until 31 Dec. 1998 St. Pölten Mag. Josef Kolarz-Lakenbacher Christiane Gottweis Eisenstadt (Representative Office) Ing. Josef Klementschitz As of 1 December 1998 ▼ ▼ Budapest as well as Siemens Rt. Centre (Forschungszentrum) Seibers- Budapest were sold. dorf Ges.m.b.H., Seibersdorf. In connection with Siemens taking ing business, metering activities in S.p.A. Thus KABLO Bratislava spol. Austria have now been grouped under s r.o., Bratislava, Magyár Kábel Müvek Siemens Metering AG Austria für Rt., Budapest and the power cable Zähler und elektronische Systeme, segment of OEKW have left the cable Vienna (formerly Uher AG für Zähler group. und elektronische Geräte, Vienna). ▼ 1 Oct. 1998 to Pirelli Cavi e Sistemi Siemens SGP Verkehrstechnik Ges.m.b.H., Vienna* 74% N: ATS 250.0 SPL Siemens Powerlines GmbH & Co KG, Vienna* 100% N: ATS 5.0 Siemens Nixdorf informacné systémy spol. s r.o., Bratislava/Slovakia* 100%7) N: SKK 12.2 ▼ Siemens Nixdorf Informaticki Sustavi d.o.o., Zagreb/Croatia* 100%7) N: HRK 0.5 ▼ ▼ ▼ SWH spol. s r.o., Bratislava/Slovakia* 98% N: SKK 15.2 Siemens Entwicklungszentrum für Mikroelektronik Ges.m.b.H., Villach* 100% N: ATS 0.5 ▼ SML Service Montage Personalleasing GmbH, Wildendürnbach** 100% N: ATS 0.5 Siemens Nixdorf Informacijski sistemi d.o.o., Ljubljana/Slovenia* 100%7) N: SIT 13.4 ANF Data spol. s r.o., Prague/Czech Republic* 70% N: CZK 4.8 ▼ over Landis & Gyr’s worldwide meter- Siemens Nixdorf Informationssysteme Ges.m.b.H., Vienna* 66.67% N: ATS 324.0 ▼ wide power cable activities as of Transport ▼ Siemens handed over its world- Information ▼ view is that in the Austrian Research ▼ companies Siemens Telefongyar Kft, Siemens Gebäudemanagement & Services G.m.b.H., Vienna** 100% N: ATS 1.0 SYSDATA, Kft., Budapest/Hungary* 100% N: HUF 51.0 * The business figures for these companies and those of Siemens Aktiengesellschaft Austria are presented in this report as “Siemens Group Austria” . ** These companies belong to “Siemens Group Austria” but have not been included in the general report. Innovest Finanzdienstleistungs AG, Vienna 100% N: ATS 2.0 Siemens s.r.o., Bratislava/Slovakia* 100% N: SKK 409.0 Siemens d.o.o., Ljubljana/Slovenia* 100% N: SIT 323.2 Siemens d.d., Zagreb/Croatia* 96.57% N: HRK 94.6 Siemens d.j.I., Sarajevo/BosniaHerzegovina* 100% N: DEM 0.1 ▼ of the Group not included in the over- Research, Development, Production Siemens Matsushita Components OHG, Deutschlandsberg* 100%6) N: ATS 197.0 Siemens Pensionskasse AG, Vienna 100% N: ATS 50.0 ▼ cable TV companies and the Hungarian Duna Kábel Kft., Budapest/Hungary* 97.46% N: HUF 1,300.0 EH-Schrack Components AG, Vienna* 100%5) N: ATS 1.0 OSRAM Österreichische Glühlampenfabrik Ges.m.b.H., Vienna* 100%9) N: ATS 36.0 ▼ One of the minority shareholdings DÖRFLER Kabelwerk GmbH, Klosterneuburg* 100% N: ATS 0.5 ▼ Our equity holdings in the Austrian Landis & Staefa (Austria) AG, Vienna* 100%4) N: ATS 29.5 Siemens Bauelemente OHG, Villach* 25% N: ATS 220.0 ▼ ▼ Building Technologies addition. Siemens-Leasing GmbH & Co,Vienna* 99% N: ATS 0.5 ▼ ▼ SKT spol. s r.o., Bratislava/Slovakia* 95.63%3) N: SKK 720.0 the field of building engineering, Landis & Staefa (Austria) AG is a new Österreichische Kabelwerke Ges.m.b.H., Vienna** 100%5) N: ATS 150.0 ▼ ▼ ▼ ▼ max.mobil. Telekommunikation Service GmbH, Vienna 19.8%2) N: ATS 200.0 As a result of Siemens taking over Elektrowatt’s worldwide activities in Relectronic-Remech Wiederherstellung und Vertrieb technischer Systeme Ges.m.b.H., Vienna* 50% N: ATS 2.5 ▼ leistungs AG, Vienna. ÖKW Kabelproduktionsanlagen GmbH, Vienna* 100%8) N: ATS 150.0 ▼ AG, Vienna and Innovest Finanzdienst- Components ▼ bruck, the Siemens Pensionskasse ▼ for Health Care GmbH (ITH), Inns- ▼ ▼ New additions emanated from the founding of Information Technologies BFE Studio und Medien Systeme GmbH, Vienna* 100% N: ATS 7.0 Other ▼ ▼ belong to the Siemens Group Austria. Republic of Austria Cables & Wiring Healthcare ITH Information Technologies for Health Care GmbH, Innsbruck** 52% N: ATS 10.0 100% ▼ Landis & Gyr Leit- und Fernwirktechnik Gesellschaft mbH, Eisenstadt* 74%1) N: ATS 5.0 the diagram marked with *) or **) BFE Studio und Medien Systeme GmbH, Mainz/Germany* 100% N: DEM 11.0 Österreichische Industrieholding AG ▼ SITEC Bau- und Anlagenerrichtungs Ges.m.b.H., Vienna* 100% N: ATS 1.0 ciated companies. The companies in Communications 26% ▼ Siemens Metering AG für Zähler und elektronische Systeme, Vienna* 100% N: ATS 1.0 Siemens Siemens AG AG Österreich Österreich ▼ and its principal subsidiaries and asso- 74% ▼ Energy ship structure that exists between Siemens Aktiengesellschaft Austria Siemens Beteiligungen AG, Zürich ▼ This overview shows the owner- 100% ▼ Siemens AG, Berlin, Munich Subsidiaries, Shareholdings and Associated Companies ▼ The Group ▼ ›› 14 1) Shares held by Landis & Staefa (Österreich) AG, Vienna 2) Indirectly, i.e. stake held by the wholly-owned subsidiary WKM 3) Indirectly, i.e. stake held by the 74% subsidiary Siemens SGP Verkehrstechnik 4) Shares held by Landis & Gyr Holdings (Deutschland) GmbH, Frankfurt/Main, Germany 5) Indirectly, i.e. stake held by the wholly-owned subsidiary KDAG 6) Shares held by Siemens Matsushita Components Ges.m.b.H. & Co. KG, Munich 7) Shares held by Siemens Nixdorf Informationssysteme Ges.m.b.H., Vienna 8) Indirectly, i.e. the two wholly-owned subsidiaries KDAG and WKM each hold 50% stakes 9) Shares held by Osram GmbH., Berlin-Munich, a whollyowned subsidiary of Siemens AG, Berlin-Munich N: Nominal capital in indicated currency in millions ›› 15 We’ve set ourselves plenty to do for the future. The knowledge, know-how and enthusiasm of the people ›› factors in our success. The corporate philosophy we have created for ourselves shapes the ways in which we think and act. It’s binding for all of us. Our organisation and all ›› It’s up to you! ›› ›› Everything is possible. in our company are decisive our systems – in particular our management system – are guided by it. Through immediate feedback – both positive and negative – we make sure it is implemented in practice. Our philosophy releases the power we need to succeed. We are a daily example of it. Martin Fasching, EWW, Production Planning Martina Spirik, EWW, Productivity Centre Claudia Seemann, EWW, Electrician, Customer Service Johann Wagner, EWW, Quality Management Research & Development, Production 2000, 2010, 2020. What is in store ›› Research & Development, Production Program and System Engineering for us? What developments can we expect? What measures are essential for shaping the coming decades in the interest of future Turnover ATS 4.935 billion (Euro 356.5 million) Employees: 3,213 Comprehensive improvements PSE’s expertise in the field of put into operation with full coverage. The MagicSAS workflow manage- one million telephone calls simul- generations? Questions about in the performance of the world’s This TMN system is also used as a network control systems was ment system was developed together the future. The answers to them can most successful digital public part of the “Node Integrator” product confirmed by initial orders from the with the Medical engineering division. As of 1 October 1998, the Soft- be found in the present: We must switching networks, EWSD, bear line by other network operators deregulated energy market and for This product integrates all patient data ware Services division was integrated step up research and development PSE’s trademark: PSE has carried out (e.g. Portugal Telecom, Singtel, Telpe) DEMS – decentralised energy including images and test results and into Program and System Engineering. considerable work in implementing in order to optimise the telecommuni- management system – which is optimises diagnosis procedures in the 11C EWSD versions for wide area cations network. based on the PSE product ECANSE radiology. and optimise production methods. The power of innovation and switches at Deutsche Telekom and technological leadership are the keys for the future. PSE has become the largest centre as an integral component. The world’s first biometric finger- Swisscom. The new components dealing with GSM client projects on the The main activities in our co- improve signalling performance by basis of IN services (e.g. prepaid serv- operation with SNI/SBS involved our foundation for using innovative 6 to up to 10 times. ices such as klax.max for max.mobil). ROMAN routing management pro- technologies in the low-cost sector. tip sensor system has now laid the © Aerospatiale ›› 18 1 1 Meteosat Second Generation (MSG) satellite with PSE test equipment 2 EWSD test panel at PSE laboratory 3 GSM test panel at PSE 2 3 4 5 On the basis of the EWSD/ PSE successfully completed ADMOSS system, PSE headed up network integration for the IRIDIUM counter terminal solutions for the telecommunications projects TELEGATE in implementing a high- satellite project. German and Austrian Post Office underlines PSE’s particularly high level performance information system. ducts for railway administration; Participation in important EU administrations; object-oriented of innovative ability: In the FRAMES EWSD has been extended by the business supplied two testing systems architecture for the and INSURED projects, PSE is The space technology area of “Node Commander” – a new systems to Aerospatiale for the INFOWAS environment information integrated in further developing the 4 The PHOTOTON project multiplies the speed of transfers in fibre optic networks telecommunications management second meteosat generation. systems of the Bavarian federal UMTS (Universal Mobile Telephone network system – to meet the future ESA/EUMETSAT placed a follow-up environment office and also the System) standard for mobile operation and maintenance standards order for METOP. integration of call centre solutions telephoning of the future. Within the 5 More than 1,060 km wide with 10 Gbits using PHOTON by PSE EZE of communications systems. with customer care and billing scope of the PHOTON research Electronics, EZE for short, made its systems. Deutsche Telekom AG’s project, the first optically switched Telekom’s entire voice switching net- mark as a development centre for large-scale NIKE project – a back- route with transmission capacity work, the VMS (Traffic Management mobile terminals by developing, office system for administering coin was put into operation between System) has been developed, instal- among other things, a new generation and smart card systems – was Vienna and Munich via Passau. led step-by-step at all 39 locations and of GSM engines. completed. This route has the capacity to transmit To monitor traffic data in Deutsche The Development Centre for taneously. ›› 19 ›› 20 ›› Research & Development, Production Research & Development, Production ›› Vienna Electronics Plant Turnover: ATS 2.721 billion (Euro 196.5 million) Employees: 1,317 The focus of our business year In the car engineering sector, local and regional). Turnover in this Siemens Development Centre for Microelectronics GesmbH ›› Software Services 9500 Villach, Siemensstrasse 2 8043 Graz Hilmteichstrasse 113 Turnover: ATS 323 million (Euro 23.3 million) Employees: 283 Turnover: ATS 148 million (Euro 10.7 million) Employees: 83 SWS is one of the leading service was on optimising and restructuring product innovations and concerted business sector reached a level of the activities of electronics manu- expansion of our systems business in ATS 349 million (Euro 25.2 million). facturing activities which were the comfort electronics segment Microelectronics in Graz (EZM for providing services to the Siemens merged last year. The newly-founded (e.g. control systems for sunroofs and short) is engaged in R&D, product- group, we also managed to step up “New Products” division systematical- electric windows) gave rise to a 27% defining, and starting up production of external business significantly. ly generates innovative product ideas increase in turnover to ATS 536 million integrated system solutions. such as the “pocket reader” . It stands (Euro 38.7 million). at the core of our planned increase in providers for SAP applications in The Development Centre for Due to the strong rise in demand Turnover in meters and ripple Austria and the Regions. On top of Our focus was the reinforcement of our local presence in the for developments, the number of Austrian provinces and in south east business volume. In the year under control receivers amounted to employees in Villach has increased Europe, as well as the addition review, turnover of ATS 142 million ATS 92 million (Euro 6.6 million). significantly and in April 1998 a of the SAP helpdesk and remote 1 2 (Euro 10.3 million) was achieved in In the face of technological change to this division. purely electronic products, the new In the Automation and Drives segment, turnover reached ATS 1.276 million (Euro 92.5 million). ATS 506 mil- generation of ripple control receivers was launched. The Public Networks sector lion (Euro 36.6 million) of this was generated turnover of ATS 326 million accounted for by power converters (Euro 23.6 million). Within the scope and ATS 770 million (Euro 55.6 million) of increasing digitalisation of the by power supply equipment. It should Austrian telephone network, more be mentioned that we have taken on systems and components were responsibility for the direct distribution supplied to Post & Telekom Austria. of power converters in world region The traffic engineering equipment 3 and that production of the second systems segment is involved in pro- generation of SITOP products has viding flexible customised solutions now begun. for public rail transport networks (both 3 4 1 The pocket reader: The world’s first off-line text reader 2 SITOP line of power converters made at the Vienna Electronics Plant 3 SIMOREG DC-Master: Technological market leader for DC drives from the Vienna Electronics Plant 4 First Class Support for our full product range for contract clients at the SWS help desk 5 The fingerprint-sensor chip for future identification systems 6 Fast data communication via copper wires with the ADSL chip 5 second location in Graz, where 50 engineers work, was set up. 6 consulting to our range of services. Notable projects – e.g. Veitsch- The main focus of EZM is on Radex, Semperit Technical Products, integrated performance switches and Linde Kältetechnik, Erste Bank, SVB, mixed analog/digital circuits for AUVA, LÖWA, Swarovski – were applications in automobile electronics, successfully completed. telecommunications, consumer and industrial electronics. Parallel to this, business in “inte- Together with SNI/SBS we won the following new customers: The Federal Ministry of Finance, BARC, grated sensor systems” in Villach has MAGNA, Henkel, VOEST, Hirsch, IFE been extended and the areas of high and Mannesmann Anlagenbau. frequency circuits, chipcards, ICs SWS was integrated into Program and safety components have been and System Engineering as of established in Graz. 1 October 1998. ›› 21 Our innovations are shaping the future. With our new ideas we create new products, new services and more benefits for our customers. We enjoy experimenting and we encourage imaginative thinking. Making use of creativity and the willingness to take risks, we make sure that good ideas can quickly be put into practice. By this, we can also promote other people’s ideas. Peter Eitler, CCN, Team leader Wolfgang Seidl, CCN, Internet and intranet specialist Silvia Fischer, CCN, Data bank administration, software applications ›› ›› High-tech at its best. ›› 24 Review of Operations Energy The global demand for energy ›› Energy Review of Operations Power Generation, Transmission and Distribution will quadruple over the next 100 years. It is therefore becoming Turnover ATS 1.181 billion (Euro 85.3 million) Employees: 209 increasingly important to deal with scarce resources responsibly. Power Generation Getting valuable energy from valuable raw materials: Siemens Against the backdrop of the liber- Donaustadt, Korneuburg and Dürnrohr Power Transmission and power stations, control equipment for Distribution power stations at Vojany in Slovakia The division is currently carrying out renovation work on the 110 kV SINAUT Spectrum with additional outdoor swtichgear at the Frauen- state-of-the-art software components kirchen (ESTAG) and Mattersburg is being installed. high-tech solutions help to increase alisation of the European electricity and Soštan in Slovenia, as well as for The focus of our activities was the efficiency of power engineering market, business was characterised the Bratislava waste incineration plant on numerous modernisation projects by stiff competition and a capital and replacement of the power centre for grid and distribution equipment. In expenditure squeeze. Despite this, we in Hirschwang for the Mayr-Melnhof the high voltage sector, VIW’s trans- executed at ESTAG’s Baumkirchen were able to achieve our targeted company. former station at Bürs was equipped and Gleisdorf sub-stations (for dual with new 420 kV SF6 switchgear, for bus bar equipment); the Arnstein equipment and to reduce the level of emissions. For example at power plants or waste incineration plants. 1 level of business. The trend towards In the field of hydroelectric power, (BEWAG) sub-stations. Significant new orders are being automated equipment with a view to several projects were successfully WIENSTROM work was carried out at switch is to receive gas-insulated increasing efficiency and saving completed. These include, for exam- the Leopoldstadt transformer station 10 kV equipment. 2 3 4 5 Business in secondary equipment 1 Combustion chamber of a new generation gas turbine resources continued. Demand in ple, generators at the chain of Drava on connecting the station’s control the field of power station control power stations in Slovenia and sup- equipment to the new 110 kV switch- (control and safety equipment) was 2 WIENSTROM’s Donaustadt power station equipment focused on our innovative plies for the small-scale Modrac gear and the 20 kV switching station successful both at home and abroad. TELEPERM XP process control hydroelectric station in Bosnia-Herze- at Schwadorf was erected. For the Notable contracts include those from 3 Innovation: Gas-insulated duct for transmitting energy in the highest voltage field system. govina. Additional orders were placed municipality of Schwaz the new “Ost” Verbundgesellschaft (Dürnrohr), 4 Vorarlberger Illwerke (VIW) transformer station in Bürs 5 Bürs transformer station: 420 kV SF6-equipment 6 Gas-insulated medium voltage NX-PLUS switchgear within the frame of on-going contracts, (East) sub-station was equipped with KELAG (Lassendorf sub-station), ESG EVN’s Theiß 2000 power station e.g. for the barrage weir on the Inn, 10 kV SF6 switchgear with accom- (entire safety equipment for the Maut- include the gas turbine which has and for the power control centre pro- panying safety and control equipment. hausen, Enns-Industrie and Katzbach now been completed (delivery is ject in Carinthia which was extended In Slovenia, Siemens was awarded sub-stations), EL-TO Zagreb and for expected this year), electrical by the Malta/Reißeck barrages. the contract to construct 110kV SF6 the Vojany power station in Slovakia. Siemens equipment supplied to equipment and also the complete block control equipment. Further switchgear at Zlato Polje. Grid transformers were ordered a network control system based on The load distributor in Varaždin Croatia was equipped with our notable contracts both at home and by WIENSTROM, BEWAG, KELAG innovative SINAUT spectrum network abroad included extension and and the Innsbruck municipal control system and the plant was put modernising work at the Simmering, authorities. into operation. For the Slovenian ELES 6 ›› 25 ›› 26 Review of Operations Energy ›› Electrical Appliances Washing and rinsing, cooking SITEC Bau- und Anlagenerrichtungsgesellschaft m.b.H. ›› Review of Operations Electrical Appliances and freezing: Siemens domestic 1210 Vienna Ignaz-Köck-Strasse 3 Turnover: ATS 361 million (Euro 26.1 million) Employees: 17 Managing Directors Mag. Christian Draxler appliances are part of the family, are economical in their consumpThe number of radio transmission stations erected for the Austrian GSM in the rest of western Europe, the fuzzy control ensuring a significant Dipl.-Ing. Dr. Siegfried Glatz Mag. Heinrich Mensdorff-Pouilly network operators rose to 600. Within washing machine, oven or refrig- Austrian market for domestic reduction in water consumption of (from 1 May 1998) the scope of a contract for max.mobil. erator – intelligent electronics can appliances showed a decrease in dishwashers and washing machines. be found in every Siemens product value of around 4% in 1997/98. very satisfactory for SITEC Bau- und the majority have now been put into operation. Anlagenerrichtungsgesellschaft m.b.H.: Turnover and new orders met 2 Newly designed facade at the FHS college in Graz SITEC’s activities were rounded off by project management and for domestic use. An example: The new intelligent Siemens cooking surface sensors which prevent pots our target figures and were around medical engineering planning along from boiling over. Some more pie in the same level as in the previous year. with technical co-ordination within the the sky but almost near enough to 2 3 4 In view of this scenario the volume of business we generated is proof of the quality of our products and of our successful sales campaigns. Close co-operation with retailers through the “Siemens special class” 5 A change in the orders on hand scope of Siemens role as general touch: HES, our Home Electronic has become a stable platform for our should be emphasised. Contracts contractor for the “engineering” side System for computer controlled successful business. which were successfully concluded of preparing Austria’s EU presidency. households. The innovative range of Siemens for the Federal Republic of Austria products covers all domestic have been replaced by new orders appliances. At every stage of pro- from other areas. One example is the duction we are paying more and construction of a vehicle testing unit more attention to the most econom- 4 No more pots boiling over with our new sensor for the “Fachhochschule” in Graz ical use – as technologically pos- which began last year and was almost sible – of all resources. The result is 5 Top rinsing: Economical rinsing – also only with a half-load completed in the year under review. new generations of appliances that Renovation of the Mooslackengasse perform convincingly due to the building was also continued. use of newly designed components 3 GSM station on the lighthouse on Vienna’s Danube island 6 Energy-saving automatic cooling with 4 temperature zones innovative Aquasensor with intelligent (until 30 April 1998) The 1997/98 business year was 1 Classroom at the “Fachhochschule” college in Graz In contrast to the growth figures also look good. Whether it’s in a to erect 150 directional radio links, 1 tion of energy and water and Turnover: ATS 1.119 billion (Euro 80.8 million) Employees: 205 (including Customer Service) and processes. An example is our 6 ›› 27 Successful economising means: We profit from profit Our benchmark is international competition. We work with results in mind and strive for outstanding success and a sustained increase in the value of our company. This ensures we have the necessary freedom to act and creates ›› ›› Committed to success. confidence. We take the necessary measures for economic success and optimise them according to time, quality and cost. Anton Lienhart, Alternative Operators, Account Manager Harald Rest, Alternative Operators, Commercial Manager Elke Neumann, Alternative Operators, In-house project management Gunther Hipfinger, BFE, Planning ›› 30 Review of Operations Industry SIGMASYS, TELEMAT, SIPART or ›› Industry ›› Systems Engineering and Technical Services; Production and Logistics Systems Review of Operations Automation and Drive Engineering SHOP MILL: Siemens electronic solutions control, regulate and automate. For example in building engineering or as system elements Turnover: ATS 3.084 billion (Euro 222.8 million) Employees: 1,405 Business in the industry division Turnover: ATS 1.527 billion (Euro 110.3 million) Employees: 146 In the field of programmable pro- range of 1.1 kW to 90 kW for use in Operators of functional buildings, cess controls, transition is currently the fields of heating, ventilation and and increasingly also of residential being made from our tried-and-tested air-conditioning. buildings, can save energy and arm of Elektrowatt AG, a Swiss com- in innovative traffic management developed well and our positioning in pany, (i.e. up to now Landis & Staefa systems. And it’s hard to imagine the home market was consolidated and Cerberus), and the activities of any industrial processes without further. Siemens building technology division, SIMATIC S5 to our new SIMATIC S7. is geared up for the developments on The TIA – totally integrated auto- in the machine tool sector, thanks to air-conditioning and lighting. In the ing, in addition to our business in the Austrian market. By 1 October mation – system managed to get a our successful new ShopMill and functional building sector average traffic regulation, the new market seg- 1999 at the latest SBT, Landis & Staefa foothold using components from the ManualTurn user interfaces for the annual savings of up to 30% of ments of car park management and and SGS, which are now separate SIMATIC system range of products. SINUMERIK range of controls. overheads can be achieved. control systems are being worked on. legal entities (see organisation chart This system overcomes existing on pages 14/15), will have been system boundaries between com- communicate and are connected with merged into one company in Austria puters and programmable process PROFIBUS DP were developed for “electronic systems” by Siemens: They help cut costs and make justin-time manufacturing possible to world-class standards. In the field of road traffic engineer- Our business in production and logistics systems did not reach 1 2 1 SIMOTECH emergency call system for motorways and tunnels 3 3 Fully electronic car park control system in St. Pölten 4 Complete installation of the positron emission tomography (PET) equipment at Vienna’s AKH (General Hospital) 5 6 7 under the management of Heinz controls, between users/monitors and our successful SIRIUS switchgear of projects. Felsner and Herbert Wegleitner. Thus controls and between centralised and range, and control-switch and alarm it will be possible to expand and decentralised automation and finally equipment with AS interface single sector was involved in numerous pro- consolidate the market positions of between manufacturing and process connection was introduced to our pro- jects, both domestic and international, technical building equipment in the automation (SIMATIC PCS7). duct mix. Together with our SIGUARD in the field of building technology sectors of installation/project manage- (safety engineering, project business, ment, building automation, safety and cess technology, with our innovative personal safety this range of products installations). Developments in the alarm technology and facility manage- energy-saving SIPART PS we became offers our clients “comprehensive overall level of construction and the ment under one roof. market leader for positional and solutions from a single source”. postponing of considerable investments made it more difficult to In the field of measuring and pro- process controls. TIA enables all drive units to be safety systems for security and The instabus EIB has set new trends in the field of electrical connected to the world of automation. installation engineering. This bus A new addition to our range of technology is significantly changing GIES Zurich, which has been created frequency converters is the MICRO- and influencing the applications and out of the merger of the industrial MASTER Eco, with a performance operation of electrical equipment. achieve our targets. SIEMENS BUILDING TECHNOLO- overhead costs by optimising heating, Motor starters which can expected levels due to the postponing The systems engineering business 2 The West Pier at Vienna International Airport 4 Our market share also increased 8 5 Fully integrated automation using SIMATIC S7-400 in hot-press machinery 6 SIMATIC PCS7 process control system at a sugar factory in Zell/Main, Germany 7 SIMATIC PCS7 with modular hardware structure and state-of-the-art software 8 MICROMASTER Eco frequency converter for heating, air-conditioning and ventilation ›› 31 ›› 32 Review of Operations Tr a n s p o r t a t i o n On the motorway, on aeroplanes ›› Tr a n s p o r t a t i o n ›› Traffic Engineering ›› Siemens SGP Verkehrstechnik GmbH Review of Operations SPL Siemens Powerlines GmbH & Co KG or on trains: We are being Turnover: ATS 2.324 billion (Euro 167.9 million) Employees: 185 confronted with the limits and negative aspects of our mobile society more and more. How can 1110 Vienna Brehmstrasse 16 Turnover: ATS 3.050 billion (Euro 220.3 million) Employees: 1,235 Supervisory Board Dipl.-Ing. Albert Hochleitner Strong demand for passenger for developing a so-called “V-Wagen” we improve safety? How can we cars, rail vehicles and rail infrastructure (“V”-car), a prototype for underground get rid of weaknesses and minimise equipment led to very satisfactory trains, and a framework agreement for Siegfried Franke 360 cars was also concluded. More Dkfm. Dr. Erich Becker Dipl. Ing. Rainer Kehl Ing. Dkfm. Gernot Kindelmann Univ.-Prof. Dipl.-Ing. Dr. Klaus Riessberger Dr. Karl-Heinz Sämann Delegates of the Works Council: Walter Winkelbauer Ottmar Fluch Rudolf Klug Ing. Friedrich Scharrer business results. potential risks? There are many In co-operation with the Austrian possibilities – one of which is ULF low-floor tramcars were delivered Federal Railways, the first half of a for Vienna, and for ÖBB three delivery of 240 double-decker cars was 1062-type high-speed locomotives completed. We fulfilled our order for and 62 sets of cab equipment were fully air-conditioned dining cars for Czech supplied. We won a contract in both public and private traffic Railways (CD). Slovenia placed an Slovenia to supply 30 light rail flows. order for 50 wagons with sliding walls. vehicles with DC traction. certainly setting up and expanding intelligent traffic management systems to monitor and control 1 1 Signalling and control engineering for undergrounds 2 The low-floor tramcar in operation 3 Rail vehicle manufacturing at Siemens SGP Verkehrstechnik 2 3 Chairman Vice Chairman 1210 Vienna Siemensstrasse 92 Turnover: ATS 296 million (Euro 21.4 million) Employees: 163 Linien (Vienna Public Transport). Furthermore, another order for doubledecker cars for ÖBB (Austrian Federal Railways) was successfully negoThe Siemens competence centre went satisfactorily; restructuring and more than one third of SGP business. cost-cutting led to an increase in Investments in Graz focused on competitiveness. further automation of our bogie 5 a five-year framework agreement was Heavy Rail department (organisational signed with the Austrian Federal merger of Siemens SGP Verkehrs- Ing. Günter Janak Railways (ÖBB) for the supply of technik’s Vienna, Graz and Erlangen Ing. Mag. Friedrich Pressl operating systems. At Wiener Linien plants) has been located in Vienna. Executive Management Mag. Manfred Dönz (until 31 Dec. 1997) (until 31 March 1998) (since 1 April 1998) Dipl. Ing. Hans M. Schabert (since 1 Jan. 1998) company. Our first business year for rail vehicles in Graz generated 4 Since 1 October 1997 our VT5/ Our overhead power transmission activities are consolidated in this tiated. production and investments in Vienna In the rail infrastructure sector, Executive Management Ing. Wolfgang Kropik Rudolf Schütz Developments in the outdoor sector were hampered by low levels 6 focused on process optimisation of of investment on the part of the Niro production. power supply companies. In contrast, Local manufacturing for inter- more expansion in the GSM and fixed national projects is on the increase: networks sectors led to successes in For example 50 per cent of the Taipeh this area. In the face of increased metro project is being manufactured investments by ÖBB, HLAG and in Taiwan under SGP leadership. Wiener Linien (extension of the U3 (Vienna Public Transport Authority), the Notable projects include the Lisbon new computer-controlled LZB-513 line underground, Line 1 at Guangzhou 4 Local finishing production of the Taipeh metro management system went into and Tanayong metro in Bangkok, operation. Bratislava’s Petrzalka station ISAP3 in Athens and the Munich and significantly once again; exports bus network improvements) the 5 The Bangkok metro with design by Porsche was equipped with an automatic Lille underground. accounted for more than 60%. These overhead contact line sector was busy signalling system based on SMC 86 good results were due, on the with a large number of projects. 6 Design sketch: Motor units for Slovenia electronic safety equipment, which is domestic front, to further deliveries of being successfully used by ÖBB. ULF low-floor tramcars and a contract Wiener Linien also awarded a contract to a consortium led by Siemens Turnover and new orders increased for the development of a new generation of underground trains for Wiener underground line to Simmering and ›› 33 ›› ›› One step ahead. We keep improving by learning. We measure ourselves against the best in the world. Each of us is working on learning all the time. We look for and give open feedback and learn from our mistakes. We are faster than others at recognising new opportunities and adjust our solutions, organisation and behaviour accordingly. We are creating an international network of knowledge where everyone gives and takes. Hannes Mattes, Communication, sales Monika Angelmayr, Communication, telephone marketing Rudolf Spitaler, Communication, sales ›› 36 Review of Operations I n f o r m a t i o n Te c h n o l o g y Information technology is the ›› I n f o r m a t i o n Te c h n o l o g y Review of Operations Siemens Nixdorf Informationssysteme Gesellschaft m.b.H. growing market – and Siemens Nixdorf is the number 2 in Austria. With innovative products and complete solutions for a whole Turnover: ATS 4.349 billion (Euro 314.1 million) Employees: 567 range of applications. For example Supervisory Board Dipl.-Ing. Albert Hochleitner electronic commerce, data Alfred Nowosad Internet connections. With integrated Siemens Nixdorf and IBM for the In July 1998, with an extraordi2,000th Consulting services by Siemens workflow components, considerable Federal Computing Centre’s (BRZ) narily tight schedule, the Vice Chairman improvements in the efficiency of decentralised hardware infrastructure workplace was set up at one of the concepts or for certification audits warehousing and multimedia. Rudolf Lamprecht administrative procedures are expect- – 15,000 PCs, 7,000 printers, 1,700 branches of Creditanstalt Bankverein: according to ISO 9000 are high on the Scanner cash registers, flight Walter Rössler ed. Besides expertise from the notebooks, 440 servers and 330 More than 50 employees of Siemens agenda and were supplied to Vienna reservation systems, electronic Dkfm. Hans Wehsely Delegates of the Works Council Alfred Senter Mag. Reinhold Sturm Executive Management Ing. Franz Geiger Federal Accounting Office and routers – made for a considerable Nixdorf and Program and System International Airport and Rudolf the Federal Computing Centre increase in the level of service, better Engineering (PSE) as well as other Uherek Vienna Ges.m.b.H. for (Bundesrechenzentrum GmbH) SNI availability of the BRZ network and partner firms were involved in this example. will be supported by its subcontrac- shorter reaction times. highly ambitious project to realise a Chairman tors IBM and SAP as a future centre shelf ticketing or car park ticket machines: You name it – IT works better with us! Chairman (until 30 Sept. 1997) (since 1 October 1997) Dr. Karl Jesacher 1 1 ISO 9001 certification for Rudolf Uherek Vienna GesmbH 2 Magnesium Notebook Scenic Mobile 800 3 Ultra-flat TFT-LCD monitor 4 Euro keyboard for PCs 5 The new Primergy 870 enterprise server for high-end equipment 2 3 Siemens Nixdorf continued its In the PC business SNI again showed a rise in growth rates and in complete solution for CA. With its ProCash CRS, Siemens 4 Our Unit Retail Systems division Nixdorf for total quality management We increased our presence in the south east European region, which is run from Austria, with large- 5 6 the second quarter, with a market Nixdorf is the first company in the scale contracts in Slovenia, Croatia, successful business course in showed considerable gains from share of 17%, was Austria’s number 1. world to start manufacturing a self- Bosnia-Herzegovina and Yugoslavia – 1997/98 and carried out numerous concentrating on its R/3 Retail and The Austrian Central Bank (National- service system for deposits and with- with the country’s largest infrastructure significant projects in all sectors on Data Warehouse merchandise bank) was fully re-equipped with drawals with a self-contained money project. the basis of our motto “we make management solutions in addition to 1,000 PC workstations featuring the flow. The first of these fifth generation IT work”. its traditional Point of Sale business. new euro keyboard. ATMs are already in use at the Swiss The Federal Ministry of Finance With the help of these products As an outsourcing partner, SNI bank UBS in Zurich. appointed Siemens Nixdorf as Raiffeisen warehouses were able to acted as co-ordinator of EDP activities general contractor for reorganising start up their retail systems. (hardware and software) for Hirsch standards were set by our innovative In the hardware sector, new Armbänder GmbH. The benefits for PRIMERGY server equipment range budgeting and accounting procedures in the second half of 1998 brought Hirsch: Low costs, automatic solution with Intel processors and by the on the basis of SAP R/3 standard us a high level of prestige, with up to to the “millennium problem” and con- SCENIC MOBILE 800 high-end note- software, using state-of-the-art 250 SNI PCs with ISDN-Internet centration on its core business – book with detachable keyboard, smart information technology such as client- connections in continuous use. the manufacture and sale of watch card reader and environment-friendly straps. magnesium casing. the entire federal administration’s 6 Fingertip commands using VIRTUAL TOUCH of expertise. JET server architecture and intranet/ Equipping Austria’s EU presidency Service co-operation between ›› 37 ›› 38 Review of Operations If there’s one building block for Components ›› Components Components and Special Engineering ›› Siemens Bauelemente OHG ›› Siemens Matsushita Components OHG ›› Review of Operations EH-Schrack Components AG the future, then it’s the microchip. Developments in semiconductor Turnover: ATS 965 million (Euro 69.7 million) Employees: 49 technology are being made at breath-taking speed according to The year under review again saw 9500 Villach Siemensstrasse 2 Turnover ATS 3.561 billion (Euro 257.2 million) Employees: 1,659 Management Dipl. Ing. Peter Bailey Dipl. Vw. Horst Seitz 8530 Deutschlandsberg Siemensstrasse 43 Turnover: ATS 3.344 billion (Euro 241.5 million) Employees: 1,472 Management Dipl. Ing. Josef Unterlaß Dipl. Oec. Hardy Klink 1235 Vienna Seybelgasse 13 Turnover: ATS 832 million (Euro 60.1 million) Employees: 526 Supervisory Board: Dipl.-Ing. Albert Hochleitner the maxim: “smaller, faster, better considerable growth rates. Innovative performing” . Siemens Austria is micro controllers for TV sets, SIPMOS Dipl.-Ing. Volkhard Matthäus the worldwide centre of expertise power semiconductors and EUPEC for developing and manufacturing power modules contributed to our suc- increasing to around ATS 3.5 billion for ceramic components, with its cessful results for semiconductors. (Euro 252.8 million) our expansion products, ranks amongst the best in course of previous years continued. the world; with exports accounting for um electrolytic capacitors, tantalum Through comprehensive restructuring 97%. Both new orders and turnover Gerd Miller Kurt Mück Delegates of the Works Council: Friedrich Übinger Charlotte Wagner Managing Board: Ing. Karl Wastl capacitors and ferrites for current trans- of the manufacturing spectrum showed double-digit growth rates. fer made for dynamic development in and high levels of customer passive components and tubes. acceptance our manufacturing power semiconductors. This includes special chip solutions for the automotive and space industries. 1 2 1 Electronic components for the car industry 2 Power semiconductors made in Villach 3 Wafer manufacture at the Villach chip factory 4 High quality standards during chip production Gains in market share for alumini- Vice Chairman With our volume of business 3 Our position as market leader for Chairman 4 The Siemens Competence Centre household appliances. In the medium term our existing facility will be extended to accommodate a manufacturing capacity of 130 million units per year. Research and development will also be stepped The demand for innovative and up in order to maintain our high level of innovation. In fiscal 1998/99 our 6 7 Schrack Components can look 8 volume increased to 969,000 wafers. components, varistors, thermistors electromechanical components was The products manufactured in and multilayer capacitors continued back on an excellent fiscal 1997/98: new miniature relay for the construc- further consolidated with new pro- Villach for the world market are mainly without a break. On top of the im- Turnover and new orders were above tion of switching cabinets. ducts in the area of motronic relays. used in automotive, communications proved economic climate in Europe, target and the number of employees and drive engineering as well as in growth was triggered by business in was increased by 70. smart cards. the Asia-Pacific and NAFTA regions. Good results in the special components sector were mainly due to the high quality of our RXS products for Work on extending the facility into In Zhuhai, China, construction of a The company is the worldwide Siemens Competence Centre for cable connectors and splicing equip- a centre of expertise for 6” power production facility for ceramic compo- power relays. At the Waidhofen/Thaya ment for fibre-optic cables. semiconductors and the development nents began on schedule. R&D facility, which employs around 500 of new technologies and products expenditure in Deutschlandsberg has staff, of whom about 20 work in R&D, 6 PT relay for switching cabinets demand rose considerably for with high R&D expenses which go increased significantly. 78 million relays were manufactured SIPLACE pick and place production hand-in-hand with this were concluded. in the year under review. Thus compa- equipment for low-maintenance, Capital expenditure amounted to rable figures from last year were modular machining concepts which ATS 500 million (Euro 36.1 million). exceeded by 39 per cent, or 22 million In the special engineering division 8 Switch stack power relay resource-saving control systems in Siegfried Fasser 5 The new production facilities in Villach 7 EH Schrack Components plant at Waidhofen/Thaya Waidhofen are used for efficient and Chairman even smaller miniature microwave 5 The relays manufactured at can quickly be re-tooled. units. PT relay will be launched – a brand ›› 39 We bear responsibility for society. With our knowledge and solutions we are doing our bit for a better world. We are committed to protecting the environment. We are a recognised member of society ›› ›› Creating tomorrow’s world. in all countries where we have a business presence. The future of our employees is secured by their knowledge. Integrity is an integral part of the way we deal with our business partners, employees, shareholders and the public. Cultural differences enrich our company. Florian Gravogel, Apprentice for electrical engineering, deaf Silvia Pfeifer, Apprentice for electrical engineering Martina Cadilek, Deaf apprenticeship project Sign language interpreter ›› 42 Review of Operations Communications GSM, ATM, ISDN, WWW: The ›› Communications ›› Public Communications Networks Review of Operations Private Communications Systems and Networks world of telecommunications has many facets, but only one market leader – Siemens. In public telecommunications networks or Turnover: ATS 3.329 billion (Euro 240.5 million) Employees: 405 The Private Communications In the growing market for call supraregional transmission equip- network. In Slovenia the second GSM successful in the year under review ment. Furthermore there was a quali- network provider Si-mobil placed an Systems division is the market leader centre solutions Siemens was able to both in the domestic market and tative improvement in the perfor- order to set up a GSM network. Our in telecommunications and as such is carry out several interesting projects, Mobile radio communications, call abroad. Our wide-ranging activities for mance of the IN system. Particularly long-term presence in Egypt was committed to its customers as it is examples being the call centres for centres, video conferencing and max.mobil., with 700,000 subscribers good developments in the expansion confirmed by follow-up orders from our aim to keep our pole position and the Bregenz Festival and for now being catered for, (setting up a of ISDN led to a strong increase in Telecom Egypt. We managed to consolidate it even further. In the max.mobil. Our Compact Call Centre further 950 base stations and integrat- orders from AOSA in the field of digi- almost fully complete our business information age, businesses are cal- which makes call centre functionality ing 4 mobile switching centres and tal switching technology: There are planned for the year under review in ling for all-in-one solutions to increase affordable for all SMEs was developed 2 home location registers) deserve a now more than 2 million ports and the Indonesia in spite of the crisis in their competitiveness, to cut costs in Austria and underlines Siemens’ suit the needs of the users and mention. The klax.max. (prepaid degree of digitalisation has reached south east Asia. Our co-operation with and to raise productivity. In the expertise when it comes to innovative customers. mobile phone card) project based on around 90 per cent. With the imple- ISKRATEL and ITALTEL in third consumer goods sector, innovative, solutions. Special solutions packages in industry: tailor-made solutions by Siemens can be found everywhere. multimedia – every Siemens product is state-of-the-art, every Siemens solution is customised to 1 The division was once again highly Turnover: ATS 2.169 billion (Euro 156.7 million) Employees: 663 2 3 4 5 6 7 1 GSM network antenna for max.mobil. an intelligent network (IN) platform, mentation of OESE V11 software markets, which began last year, high-performance mobile and cordless for self-employed people, such as which was successfully concluded at upgrading which took place in the first continued successfully. We are phones are in demand. lawyers, notary publics and architects, 2 Innovative adapter concept connecting telephone and PC the beginning of the reporting period, half of 1998, the functional prerequisi- executing one further new order for is an example of the very latest tech- tes for a deregulated market are now the Hungarian Railways for a carried out numerous notable projects nology in this field. Our second IN in place. In the field of OAM we were communications and data network and solutions. Around 6,000 sub- service involved setting up a virtual commissioned to centralise system based on fibre optics. scribers from all areas of the public which is continuing to boom, private network (private numbering management for PTA. Involvement in sector are connected to the voice and Siemens’ market share is still growing plan for extensions and mobile many other projects, such as carrying data network of the Lower Austrian thanks to new attractive products phones). out an ADSL pilot project or initial provincial government – an excellent such as the S10 active, the first cellu- delivery of radio link systems, is more basis for more contact with the people lar phone for outdoors with an infrared proof of Siemens expertise. and more efficient administration. interface for cableless data transmis- 3 State-of-the-art transmission technology for exchanges at Telekom Austria 4 “I-Surf” ISDN PC board offers newcomers on-line services, home banking etc. 5 Innovative call centre solutions Business activities for Post und Telekom Austria AG included further 7 The mobile phone for outdoors: S10 active round off our wide-ranging product mix. On the mobile phone market, A corporate network was developed sion and a stylised marketing strategy. optimising it by using upgraded contract by HPT to extend the GSM and installed for Porsche, and the UTA In the cordless sector Siemens Aus- software features and putting cross network (doubling of capacity to Telekom AG network also works using tria’s turnover ranks among the best in connects into operation connecting 400,000 subscribers) and the fixed Siemens technology and know-how. the world within the Siemens group. extension work on the ATM network, 6 SL10 designer mobile phone with IR interface In the 1998 fiscal year Siemens In Croatia we were awarded a ›› 43 ›› 44 Review of Operations Communications ›› 1 Competence Centre Information Technology & Networking Communications ›› ›› Alternative Operators Turnover: ATS 929 million (Euro 67.1 million) Employees: 342 Turnover: ATS 242 million (Euro 17.5 million) Employees: 17 CCN provides platform-indepen- AB managed to achieve market Siemens Telefongyár Kft H-1143 Budapest Gizella út 51-57 Turnover: ATS 1.430 billion (Euro 103.3 million) Employees: 388 Supervisory Board: Dr. Paul Dax leadership in its first full business structure projects as well as for the year. In addition to the national Dipl.-Ing. Oec. Péter Hetényi integration of voice and data commu- network operators Citykom, tele.ring, nication. Automated proactive security UTA and MIT, also regional carriers and safety checks, cryptography and and service providers such as Pega- Klaus Helsen Mag. Dr. Harald Wasserburger Delegates of the Works Council: Krisztina Kéri (until 12 May 1998) phone operators, Siemens Telefongyár anti-virus checks round off our range sus, Stadtwerke Feldkirch, NÖKOM László Teréni introduced innovative technologies – of services. Among others, AMAG, and DBS have chosen to co-operate László Schöller Veitsch Radex and Hirsch became with Siemens. For UTA, Citykom and tele.ring all-in-one solutions – ists proved their expertise in setting switching centres, call centres, 2 3 4 Cordless Telecommunication) – on the Hungarian telecommunications 5 6 Executive Management Dr. Gábor Beke-Martos systems – were provided. UTA’s further expansion of its Austria-wide ATM Dieter Heise network went according to plan. Mag. Wolfgang Wrumnig 7 “DECT-videophone” prototype: Transmission of colour video images via cordless telephones Network) and DECT (Digital European (since 12 May 1998) work. The division is currently busy on 6 HICOM “Optiset” terminals such as MLLN (Managed Leased Line János Ihnatisin expanding the Austrian backbone net- 5 Switching system in Telekom Austria’s fixed network through other projects with local tele- (since 12 May 1998) 2 State-of-the-art server technology for CCN customers 4 Splicing a fibre optic cable Hungarian telephone company, and (until 12 May 1998) customer care and billing and access gesellschaft’s business applications to agreements with MATAV, the Vice Chairman up a 34 Mb ring in Vienna and by a project which will enable Verbund- mention. By concluding framework Chairman 1 Automated monitoring at the CCN Control Centre 3 Laying fibre optic cables in Krems Hungarian Railways should be given dent IT services for in-house and infra- new customers of ours. CCN special- Managing Director (until 31 Dec. 1997) (since 1 Jan. 1998) New services – customer 7 market. Parallel to this the company successfully won tenders for supplies in the cable TV technology sector. The merger of our subsidiary Tertainstall Kft. at the beginning of be transferred from SAP R/2 to business development, customer SAP R/3. connection strategies and outsourcing company continued. Turnover went up services with the Siemens Rt. The dynamic upward trend at the 1998 and the amalgamation of internal – met with great interest from users. to ATS 1.430 billion (Euro 103.3 mil- regional organisation led to consid- high-speed network and its “MOON” In the field of multimedia, pilots for lion) and new orders reached erable synergies. management system is being carried “tele.learning” and “tele.social” were ATS 1.748 billion (Euro 126.3 million). out at the moment. successfully launched. Our market position was thus were transferred to Siemens AG consolidated even further. Berlin and Munich. Test operation of the “PHOTON” As of 1 October 1998 AB will no longer be run as an autonomous business unit. Review of Operations The signing of an agreement for the finance to construct a nation-wide communications network for MAV the Shares in Siemens Telfongyár Kft ›› 45 ›› 46 ›› Review of Operations Communications ›› Audio and Video Systems Relectronic-Remech Wiederherstellung und Vertrieb technischer Systeme Ges. m. b. H. Healthcare ›› SKT spol. s r.o. Next please! Even though our ›› Review of Operations Medical Engineering “computer colleagues” have been Turnover (Austria): ATS 229 million (Euro 16.5 million) Turnover (world): ATS 1.794 billion (Euro 129.6 million) Employees (Austria): 74 Employees (world): 435 1100 Vienna Quellenstrasse 2 Turnover: ATS 168 million (Euro 12.1 million) Employees: 182 Management Mag. Erich Noll SK-830 07 Bratislava 37 Stromová 9, PO Box 69 Turnover: ATS 68 million (Euro 4.9 million) Employees: 67 Supervisory Board Dipl.-Ing. Eduard Uhl Chairman The AV division provides innova- One of the company’s core spe- tive sound and studio engineering and cialisms is offering fast and reliable acoustic systems. repair of technical systems and facili- The cost situation in international ties (switchgear, production facilities markets gave rise to broad restructur- and buildings) right through to carry- ing measures: Studio engineering was ing out total damage management divested to BFE/Vienna as of 1 June after fires, floods and environmental Dr. Wesselin Schopoff Ing. Robert Bammer Mag. Heinrich Mensdorff-Pouilly Executive Managers Ing. Peter Hornof Manfred Naber The year under review was shaped by continued extension work on the around now for so long in surgeries and hospitals – a consultation with a doctor or specialist will still expenditure, cost-cutting by establish- “Barmherzige Schwester” Hospital in ed specialist doctors and a reduction Upper Austria. Due to the fast is just for this reason that high-tech in market prices caused by aggressive availability of this innovative software is indispensable in today’s health- competition all led to a noticeable package and Austrian expertise in decrease in our business volume. In development and systems a separate spite of the difficult market conditions centre of competence for this we managed not only to maintain our product has been set up in Austria high market share but even to build which is responsible for distributing on our high-tech areas CT, MR PET MAGIC-INFO all over Europe. and SIENET thanks to important care – from ultrasound scanners to computer tomographs. Electronic assistants support staff who disasters. In this way plant inter- wideband networks in Bratislava, co-operation with BFE/Mainz was ruptions are kept to a minimum. Dunajská Streda, Banská Bystrica, bring better treatment results. started. Notable contracts included 3 A typical example of the activities Dolný Kubín, Trenčín and Žilina: The equipping the St. Pölten radio of Relectronic-Remech was a large- number of subscribers rose by broadcasting house and handing over scale operation lasting several weeks approx. 19,000 to a total of 156,000 two audio outside broadcast vans after a fire in the control room of a households that are now connected to the ORF. wind-driven power station in the north to the high-capacity networks. In the field of sound engineering of Vienna. In spite of difficult condi- In addition to an increase in the we focused on our core products and tions – the giant rotor blades had to be density of connections in the cabled streamlined our sales activities. Signif- dismounted at a height of 50 metres areas, preparatory work began on icant contracts for acoustic systems with the help of special cranes while transmitting voice, data and telemetry. included equipping 37 underground there were very strong winds – the A team of well trained technicians stations in Hong Kong and UNIDO specialists managed to repair the guarantees the network’s high levels conference rooms in Vienna. equipment. of availability and quality. As of 1 October 1998 AV is no longer being run as an independant division. Hospital in St. Pölten and at the treatment in the future. However, it 1998 and at the same time close 2 Ceilings on public healthcare remain the basis for diagnosis and provide treatment, save time and 1 Turnover: ATS 1.035 billion (Euro 74.8 million) Employees: 203 4 1 Full digitalisation for Radio Austria International with CARAT 5 3 SKT service: Quality and competence 4 Positron emission tomography going into operation at Vienna’s AKH (General Hospital) mation systems to optimise proces- in internal procedures. sing and benefit in all in-patient areas 6 Data exchange between hospitals using teleradiology workstations are constantly rising. The resulting MAGNETOM HARMONY and increase in consulting and planning SYMPHONY nuclear magnetic reso- led to the setting up of a subsidiary – nance tomographs and of PET ITH – together with TILAK, the Tyrolean scanners in Vienna and Klagenfurt Hospital Management Company and should be mentioned. Our market Systema, a software specialist. share for the SOMATOM PLUS 4 computer tomographs was again well 5 Demonstration room at the Vienna Kaiser-Franz-Josef hospital 6 product innovations and to adaptations Installation of innovative 2 Repair work on wind-driven power station equipment The requirements for clinical infor- over 50 per cent. The MAGIC-INFO hospital ward management system, which was developed in Austria, led to a number of contracts – such as at the Provincial ›› 47 We achieve top performance by excellent management. Our leaders set clear, ambitious and inspiring goals. We constantly want to outperform ourselves, otherwise it’ll be the others who do so. We lead on the basis of trust and give our staff as much leeway as possible in decision-making. ›› ›› Leadership now. We push through the necessary changes boldly and decisively. Our leading managers set examples in everything they do. Heinz Cvetkovic, SPS, IT Outsourcing Gerhard Hilscher, Entire project manager, Technology Annemarie Fazekas, SITEC, PA Alexander Hartig, Group account manager Franz Daberger, Project manager, Energy management ›› 50 Review of Operations Cables & Wiring One moment please, I’ll connect ›› The “OEKW” Group Cables & Wiring ›› ›› Österreichische Kabelwerke Ges.m.b.H. Review of Operations Magyár Kábel Müvek Rt. you! Without cables and wires our 1210 Vienna Siemensstrasse 88 Turnover: ATS 1.715 billion (Euro 123.9 million) Employees: 599 highly complex world wouldn’t function. They keep business going, transfer electricity and energy, The international cable market Supervisory Board Dipl.-Ing. Albert Hochleitner connect networks and take us onto continues to be characterised by over- the Internet. The essentials for capacities and ensuing stiff compe- Dipl.-Ing. Helmut v. Deimling smooth operation: Efficient quality tition as well as global concentration. management, strict controls and The companies of the OEKW group Dr. Uriel J. Sharef Dipl.-Ing. Helmut Kastl Mag. Alfred Ötsch Delegates of the Works Council: Walter Krippl Ing. Thomas Pils Walter Schildknecht Executive Managers Dkfm. Hans Wehsely reacted to this by continuing to take perfect installation. measures to adjust and rationalise, at the same time keeping up with the increasing requirements of our customers. Chairman H-1116 Budapest Barázda út 38, Turnover: ATS 1.645 billion (Euro 118.8 million) Employees: 893 Mediterranean and in the Far East were successfully concluded. Pirelli is entering the Siemens’ Vice Chairman power cable business with continued good relations with our customers and with an assurance of the usual high standards in Austria. 2 Chairman Matthias Kleinhempel Vice Chairman Joachim Beninde Dkfm. Hans Wehsely Delegates of the Works Council: László Kovács Eva Zsivola Executive Board Dr. Mihály Laczkó Chairman (until 25 March 1998) Dipl. Ing. Oec. Péter Hetényi Spokesman Chairman (from 25 March 1998) Dipl.-Ing. Helmut Kahl Jan Hendrik Buchmann (until 25 March 1998) In this tight situation Siemens AG 1 Supervisory Board Dipl.-Ing. Albert Hochleitner 3 4 A new product – guard wires and overhead power lines with integrated glass fibres – has been added to our range. Receiving HAR approval for our plastic-insulated flexible conductors and twin conductors means we will benefit from optimum sales in the EU and on the world market. Network development which was carried out last year and new technologies having been put 5 6 1 Laying submarine cables between Krk and Rab managed to find a strong partner for its power cables business – PIRELLI across the whole company enabled 2 Measuring fibre optic submarine cables S.p.A. Milan – who took over power optimum supplies to our customers in 3 Fibre optic submarine cables landing at Crvkenica worldwide as of 1 October 1998. In the Danube area this will effect the market included those signed with 4 1 kV power cable relevant sectors of OEKW as well as the electricity companies and turnkey 5 Halogen-free, flame resistant Pyrotard®cable our subsidiaries MKM Budapest and projects for high-voltage equipment. Kablo Bratislava. Our alliance with We stepped up the expansion of fibre sectors several turnkey projects were 6 “Minisub” fibre optic submarine cable Pirelli – one of the world’s largest optic networks in seven urban centres carried out in Hungary and India. Müvek Rt. were transferred to Pirelli cable manufacturers – will offer long- in Austria. Capacity utilisation was Significant successful exports were Cavi e Sistemi S.p.A. Milan as of term solutions for this area of also improved by increased invest- generated in Croatia, Bosnia, Saudi 1 October 1998. business and also for our customers. ments by the Federal Railways, in Arabia and Romania in addition to in particular in the long-distance cable the traditional sales areas. cable activities with 6,200 employees Continual increases in productivity spite of reduced capacities. Notable contracts on the domestic sector. Furthermore, contracts in the Dr. Gábor Beke-Martos (until 25 March 1998) Dipl. Ing. Antal Ganter (from 25 March 1998) Mag. Dale A. Martin (from 25 March 1998) Dipl. Ing. Alexander Pachta-Reyhofen (until 25 March 1998) Júlia Tauffer (until 25 March 1998) into operation set the scene for a reduction in turnover of data cables, which also had repercussions on the company’s total turnover. During the course of continued streamlining, manufacturing of composite-layer sheath cables has been shifted from In the high and medium voltage Szeged to Duna Kábel. The shares in Magyár Kabel ›› 51 ›› 52 Review of Operations Cables & Wiring ›› Cables & Wiring ›› Duna Kábel Kft. H-116 Budapest Hengermalom út 43 Turnover: ATS 121 million (Euro 8.7 million) Employees: 83 Executive Management Lászlo Felföldi Zoltán Zoltánfi ›› DÖRFLER Kabelwerk GmbH 3400 Klosterneuburg Aufeldgasse 33–35 Turnover: ATS 137 million (Euro 9.9 million) Employees: 93 Review of Operations Kablo Bratislava spol. s r.o. SK-81261 Bratislava Továrenská 11 Tunover: ATS 710 million (Euro 51.3 million) Employees: 441 Executive Management Dr. Albert Felbauer Executive Management Dipl.-Ing. Peter Lechta (until 30 April 1998) Spokesman Dipl.-Ing. Alexander Pachta-Reyhofen Prof. Ing. Hans M. Tuschar (from 1 May 1998) Due to the concentration of all 1 With over 1,200 different products, shows our commitment to develop- The company achieved turnover of Siemens manufacturing activities Dörfler manufactures a wide range of ment. In the data cable sector Dörfler just over ATS 700 million in 1997/98 Duna Kábel was able to consolidate special cables and wires for telecom- was the first company to launch a with a limited average number of 500 its leading role as manufacturer of munications, electronics, data and 1 GHz cable made in Austria and thus staff. Further reductions in prices data cables in Hungary. Despite audio engineering. Growth was proved its leading market position. slowed business and meant fewer strong price competition on inter- achieved by determined product deliveries to Germany than in the national markets we managed to win innovation. We supplied the fast previous year. However, market share 2 3 4 5 1 Installing a TOP fibre optic cable significant orders in neighbouring growing market for hand-free mobile in Slovakia and the Czech Republic countries. Flexibility, quality and phone equipment with highly flexible went up slightly. The distribution 2 DÖRFLER cables for the Andromeda Tower in Vienna meeting deadlines were responsible connecting cables. In the industrial warehouses that were set up last for our success under the given sector, in addition to our successful year continued to prove their 3 Installing TOP fibre optic cables on a wooden mast difficult market conditions. market entry in the field of tempera- efficiency. 4 Installing fibre optic cables in medium voltage equipment 5 Prototype testing of 110 kV cable with connection joint ture probe connecting wires, long- Shares in Kablo Bratislava spol. term supply agreements were also s r.o. were transferred to Pirelli Cavi e signed. Sistemi S.p.A. Milan as of 1 October Our innovative digital AES/EBU modulation cable which is increasingly 6 Mounting a fibre optic cable to an existing guard wire using AD-Lash technology being used in audio engineering 1998. 6 ›› 53 Our customers determine our actions. Our utmost goal is to satisfy ›› ›› Partnership creates success. our customers’ needs. Our success depends on our customers’ satisfaction. With our solutions they can achieve their goals faster, better and more easily. Peter Gärtner, Michelfeit, Head of technical department Sabine Kavalir, Corporate Network Solutions, Instructor Siegfried Übelhör, Head of sales for PN in Linz and Salzburg ›› 56 Review of Operations Regions What used to be just a promising ›› Regions ›› Siemens in Slovakia Review of Operations Siemens in Croatia market is now the market of the future: There’s a whole lot going on in the east – and Siemens is playing a significant part. Slovenia, Croatia, Bosnia-Herzegovina, Slovakia; everywhere things seem to be looking up. Infrastructure, business, Siemens s.r.o., Bratislava SK-83007 Bratislava 37 Stromová 9 Turnover: ATS 1.624 billion (Euro 117.3 million) Employees: 222 constructing a “GuD” power station Regional responsibility Heinz-Werner Häfner Executive management Dipl.-Ing. Peter Kollárik Dr. Andreas Bobik “Partnership creates success” . 1 for VSZ in Kosice. We expect our successful upgrading of public lighting in Bratislava to lead to further contracts in other cities. places of work and the social system. How should we say it now? Siemens d.d., Zagreb HR 10000 Zagreb Heinzelova 70a Turnover: ATS 1.047 billion (Euro 75.6 million) Employees: 496 Turnover in 1997/98 at the In addition to these activities, Regional responsibility Ing. Wolfgang Hirzi Executive management Dipl.-Ing. Mirko Barisic Uwe Gregorius Gregro Weiher Siemens carried out notable projects in the field of automation with the Pliva pharmaceuticals company and with Podravak, a food company. Our innovative technology can Results in our medical engineering Siemens s.r.o. sales and distribution be found in all areas of Slovakian company in Bratislava was almost industry. Examples are signalling and at the end of 1996, has made great the energy sector focused mainly on twice as high as in the previous year, safety equipment for the Bratislava progress and has been busy in all its upgrading and modernising domestic and new orders amounted to ATS 973 Petrzalka railway station and industrial business sectors. power stations. million (Euro 70.3 million). The ten engineering for breweries. Through 2 3 Siemens d.d., which was founded division were also good. Contracts in With some 500 employees, the 4 In the building engineering field 5 6 1 Innovative lighting for the new bridge in Bratislava companies which are extensively the close co-operation of our PN company received new orders worth good results were achieved. In future active in all Siemens areas of busi- division with both of the Slovakian ATS 1.265 billion (Euro 91.4 million). we expect to become even more 2 The Volkswagen ES factory in Nitra ness generated turnover of around GSM network operators, we managed ATS 4 billion (Euro 288.9 million) with to increase our market share in the business is still telecommunications. over 6,000 employees. Siemens mobile phone sector from 3 to 20 per This sector continued to grow and Automotive, Osram, Volkswagen ES cent. Further growth in our turnover accounted for almost half of Siemens (a joint venture with VW), Kablo figures for the current business year is d.d.’s turnover. In the field of Public Bratislava and the newly founded expected. Communications Networks, Siemens 3 The old waste incineration plant in Bratislava 4 Automation engineering for the PLIVA pharmaceuticals company 5 A large contribution to the digitalisation of the Croatian telecommunications network: EWSD exchange in Dugo Šelo 6 PLIVA’s newly opened AZITROMICIN plant was equipped with Siemens TELEPERM process control system The most important area of Siemens subsidiary Vacuumschmelze is still the sole supplier for the GSM were particularly strong performers. network in Croatia. Siemens is also The large-scale “GuD” power the second biggest supplier of EWSD station project in Bratislava was com- digital switching systems. Business in pleted. New projects in the energy telephone terminals is also very sector include the waste incineration successful. plant in the Slovakian capital and successful in this area, particularly in building up a tourist infrastructure. ›› 57 ›› 58 Review of Operations Regions ›› Regions ›› Siemens in Slovenia Siemens d.o.o., Ljubljana SI-1511 Ljubljana Dunajska 22 Turnover: ATS 494 million (Euro 35.7 million) Employees: 49 Siemens in Bosnia and Herzegovina Siemens d.o.o. Sarajevo BH-7100 Sarajevo Dubrovačka 6 Turnover: ATS 300 million (Euro 21.7 million) Employees: 36 and for 50 cargo wagons. ELES, the Regional responsibility Ing. Wolfgang Hirzi Executive management Dipl.-Ing. Janko Hrvatič Dr. Jörg Aufhammer power supply company, commissioned us to set up a network control system. And Siemens is providing in Bihać, Kakanj and Zenica. IntegraRegional responsibility Ing. Wolfgang Hirzi Executive management Dipl.-Ing. Ranko Atijas Borut Ogrin Elektro Gorenska with 110kV GIS highThe Siemens d.o.o. regional sales and distribution company in Ljubljana, 1 Units) to the exchanges in Mostar, Buhojno and Zenica is underway. Another on-going project involves Siemens d.o.o. in Sarajevo experi- voltage switchgear. In the current 1998/99 fiscal year tion of 5 RDLU (Remote Digital Line expansion work on the GSM network enced a big upswing in business: in the republic of Srpska. Extending with its workforce having now the Slovenian power supply compa- Turnover was ATS 291.8 million the PN distribution network is paving increased to 49, managed to further nies will be making decisions on (Euro 21.1 million); the workforce the way for increased sales of mobile consolidate its market positions in the further notable projects in the power increased to 36. and fixed telephone terminal equip- individual fields of business. New station and high-voltage equipment 2 3 In the EV/EWU divisions the 4 ment. 5 1 Wagons with sliding walls for Slovenia orders at Siemens in Slovenia sectors. And decisions will also be Modrac and Osanica hydroelectric amounted to ATS 2.162 billion made for signalling and safety power station projects and the project began trading in the region, with 2 8DH switchgear at the Radovljica substation in Slovenia (Euro 156.2 million). equipment for the rail route between for 6 kV equipment for the Kakanj numerous projects being carried out. Ljubljana and Sežana. In addition to power station were completed. For example computer facilities were 3 Design sketch for Slovenian multiple units 4 COROSCOP for diagnostics and treatment of the heart at the cardio-surgical clinic in Sarajevo 5 Turbine room at the smallscale hydroelectric power station in Osanica near Goražde 6 Modrac hydroelectric power station near Tuzla The large-scale telecommunica- Siemens Nixdorf successfully tions network project for the Slovenian this, Siemens is counting on its Notable contracts in medical Railways was successfully completed. chances of becoming systems engineering included equipping Sara- and ATMs were delivered to the A significant new order was received supplier to the second GSM network jevo’s cardio-surgical clinic (total value country’s largest bank. for setting up a telephone network in operator. ATS 70 million/Euro 5.1 million) and supplied for the government buildings In our ATD division, the safety Ljubljana – with an option for it to be large supply contracts for the hospi- and security system project for the extended for data communication tals in Zenica, Tuzla, Travnik and Nova Austrian Embassy in Sarajevo was use. Bila (contract size: ATS 70 million/Euro finished on schedule. Particular mention should be made of new contracts to construct 30 urban transit trains with a total value of ATS 1.4 billion (Euro 101 million) Review of Operations 5.1 million). The Public Networks division put three EWSD exchanges into operation 6 ›› 59 Our teamwork has no limits. We are a global company making use of our worldwide skills. In this way we can become the best competing team. Our way of thinking and acting is shaped by responsibility for mutual goals. The features of our teamwork are trust, personal integrity, mutual respect and open communication. ›› ›› Team works. Martin Ramharter, ATD ETD, Emission measuring systems August Scharinger, ATD ETD, Systems planner Wolfgang Springer, ATD ETD, Project manager Margit Mueller, ATD ETD, Software programmer Control engineering ›› 62 Siemens worldwide World economy with falling growth rates In spite of a slow-down in the world electronics Siemens worldwide Business in America still on the upswing Whilst the good economic climate continued for business, Siemens increased its sales by 10% to DM 117.7 another year in North America, South America experienced billion (Euro 59.8 billion). New orders were up 6% at a considerable slowdown. However, new orders increased DM 119.6 billion (Euro 60.8 billion). International business by 29% and sales by 26% to DM 27.1 billion (Euro 13.8 bil- continues to be the strongest performer: New orders lion). The American share of global orders accounted for outside Germany (foreign business) went up 10% to 25% (20% last year). There was again increased growth in DM 84.9 billion (Euro 43.1 billion), accounting for 71% of the USA. Sales were up 16%, new orders up 28%. total orders. Foreign sales were up 15% at DM 81.4 billion In Central America we also achieved high growth rates, (Euro 41.4 billion). In Germany, sales maintained their although business in Brazil only increased slightly. previous year’s level at DM 36.3 billion (Euro 18.4 billion). Significant slowdown in the Asia-Pacific Rim Globalisation of workforce Business in this region fluctuates continually due to As of 30 September 1998, Siemens employed 416,000 large contracts being settled. In the year under review, staff worldwide; 30,000 up on the previous year. Most however, the difficult economic and currency situation in of the new employees came from the takeover of parts of this region led to a decline in the level of business. On the the Westinghouse Corp. (8,000), from increased activities one hand, turnover again increased by 8% due to the in China (4,000) and Landis & Gyr (4,000). The number settlement of large-scale projects, but orders were down of employees outside Germany went up from 189,000 to by 25% to DM 12.3 billion (Euro 6.3 billion). Business in 222,000. In Germany, comparable figures – i.e. after China continues to be stable, whilst there were losses in adjustments for those leaving due to the i-centers and Indonesia and Thailand in particular. safety and dental engineering divisions having been sold New orders German business International business Siemens Change on previous year 1993/94 1994/95 1995/96 1996/97 1997/98 35,101 53,270 88,371 +5% 38,049 53,851 91,900 +4% 37,998 62,807 100,805 +10% 35,639 (18,112) 77,481 (39,376) 113,120 (57,488) +12% 34,718 (17,644) 84,883 (43,138) 119,601 (60,782) +6% 35,771 48,827 84,598 +4% 37,857 50,906 88,763 +5% 36,391 57,789 94,180 +6% 36,299 (18,447) 70,631 (35,895) 106,930 (54,343) +14% 36,252 (18,424) 81,444 (41,390) 117,696 (59,814) +10% 1994 1995 1996 1997 222 160 382 211 162 373 203 176 379 197 189 386 194 222 416 1993/94 1994/95 1995/96 1996/97 1997/98 35,999 35,467 35,958 38,060 (19,342) 39,375 (20,011) 2,649 3,072 5,721 1,188 4,533 4,473 99% 3,478 3,987 7,465 2,021 5,444 4,564 84% 3,767 4,095 7,862 1,213 6,649 4,556 69% 3,864 (1,964) 5,897 (2,997) 9,761 (4,961) 2,030 (1,032) 7,731 (3,929) 5,051 (2,567) 65% 3,291 (1,673) 10,995 (5,588) 14,286 (7,260) 6,787 (3,449) 7,499 (3,811) 7,045 (3,580) 94% 7,508 8.9% 7,274 8.2% 7,296 7.7% 8,132 (4,133) 7.6% Sales German business International business Siemens Change on previous year Employees* (in thousands as of 30 Sept.) in Germany outside Germany Siemens Personnel costs Siemens 1998/98 off – showed a rise of 3,000 employees. Investments High growth rates in Europe again The favourable economic situation in western Europe again led to double-digit growth in business volume. New orders climbed to DM 32.5 billion (Euro 16.5 billion) (compared with DM 29.3 billion/Euro 14.9 billion). Scandinavia and Greece were also particularly strong performers in Germany outside Germany Siemens of which acquisitions of equity stakes of which fixed assets depreciation on fixed assets as a % of fixed asset investments on top of the gains in France, the UK and Spain. The high growth rates in Poland and the Czech Republic were also Research and Development very pleasing. In eastern Europe there was a total increase to DM 4.6 billion (Euro 2.3 billion) (compared with DM 4.0 billion/Euro 2.0 billion). Siemens as a % of sales ** does not include student interns and trainees, ** part-time employees included on a pro-rata basis 9,088 7.7% (4,619) Amounts shown in DM million (Euro million) 1 Euro = DM 1.9677 (mean rate as of 30 Sept. 1998) ›› 63 ›› 64 Te a m w o r k s . F o r y o u . At the Siemens Forum Vienna. And all over Austria and in the Regions. The Siemens Forum located in Vienna’s “Erdberg” district is now moving into its 3rd successful year. It’s not only the interactive technical exhibition called “Journey in time”, which is visited daily by many school groups, that contributes to this success, but also in particular the numerous cultural events which take place here. In the past year these have included the “12 artists from the artLab” Vienna Rum bei Innsbruck A-1211 Vienna Siemensstrasse 92 Tel: (01) 1707-0 A-6063 Rum bei Innsbruck Siemensstrasse 24 Tel: (0512) 1707-0 A-1030 Vienna Erdberger Lände 26 Tel: (01) 1707-0 Klagenfurt exhibition, “Virtual dialogue” featuring the Hommuculus dance theatre and – as an Austrian premiere – the 3-day-long series of events on literature and technology called “LITERATnik- A-1100 Vienna Gudrunstrasse 11 Tel: (01) 1707-0 A-9020 Klagenfurt Werner-von-Siemens-Park 1 Tel: (0463) 1707-0 Linz TEKTUR” with podium discussions, readings St. Pölten A-3100 St. Pölten Werner-von-Siemens-Strasse 1 Tel: (02742) 1707-0 A-4020 Linz Wolfgang-Pauli-Strasse 2 Tel: (0732) 1707-0 Slovakia Salzburg A-5020 Salzburg Innsbrucker Bundesstrasse 35 Tel: (0662) 1707-0 A-5020 Salzburg Fürstenallee 4 Tel: (0662) 83 04 35-0 and an adventure exhibition. In the coming year A-5033 Salzburg Petersbrunnerstrasse 19 Tel: (0662) 84 15 81-0 there are plans for many interesting events, including a sequel to the “LITERATnikTEKTUR” Bregenz series. If you would like to hold a seminar, workshop or conference at the Siemens Forum, you can register online: A-6901 Bregenz Josef-Huter-Strasse 6 Tel: (05574) 1707-0 Siemens s.r.o. Bratislava Stromová 9 SK-83007 Bratislava 37 Tel: 00421/7/538-1111 Croatia Siemens d.d. Zagreb Heinzelova 70 a HR-10000 Zagreb Tel: 00385/1/6105 Slovenia Siemens d.o.o. Ljubljana Dunajska 22 SI-1511 Ljubljana Tel: 00386/61/1746 Siemens Forum Vienna, Dietrichgasse 25, A-1030 Vienna, Tel.: 1707-37200, Fax: 1707-57399 Eisenstadt E-mail: [email protected] “Journey in time”: every Saturday, Sunday and public holiday from 9.00 a.m. to 5.00 p.m., A-7000 Eisenstadt Marktstrasse 3 Tel: (02682) 1707-0 groups also on weekdays with prior notice. Imprint: Publisher: Siemens AG Austria, 1210 Vienna, Siemensstr. 88–92. Responsible for contents: Mag. Peter Baumgartner, Editing: Dr. Peter Faber, Dipl.-Ing. Kieseberg, Text: Dr. Frederick Staufer, Mag. Michael Kanofsky, English translation: R. Catherine Prewett-Schrempf, Staff photos: Hannes Horvath, Art-Direction: Mag. Martina Glaser-Mikulka, Produced by: Josef Kramer, Jutta Duschet, Typesetting and Litho: Grafo, Printed by: Druckerei Ketterl. Graz A-8054 Graz Straßganger Strasse 315 Tel: (0316) 1707-0 Bosnia-Herzegovina Siemens d.o.o. Sarajevo Dubrovačka 6 BH-71000 Sarajevo Tel: 00387/71/666-359 Siemens Aktiengesellschaft Austria Bestell-Nr. FW 1000e. 0199