Siemens, headquartered in Berlin and Munich, is one of the world's largest electrical engineering and electronics companies. Sustainability has been a hallmark of Siemens ever since its founding more than 155 years ago. At Siemens, sustainability means long-term economic success coupled with environmental awareness and the social responsibility that goes with being a good corporate citizen. In fiscal 2004 (ended September 30, 2004), the company had roughly 430,000 employees and posted sales of €75.2 billion. Net income totaled €3.405 billion.

With activities in more than 190 countries and some 600 plants, research facilities and sales offices worldwide, Siemens has a strong international presence. Company businesses are focused on six core areas: Information and Communications, Automation and Control, Power, Transportation, Medical and Lighting.

Innovation is a top priority at Siemens. In 2004, the company invested €5.1 billion, or slightly less than seven percent of its sales, in R&D. Last fiscal year, Siemens researchers and developers turned out more than 8,258 inventions and filed more than 4,994 patent applications. The company is the largest patent applicant in Germany and occupies a leading position in both Europe and the United States.

Asset management, quality management and innovation management are the key pillars of Siemens' top+ business excellence program, which the company has been successfully implementing for several years now. The initiative has been particularly successful in improving productivity. At the beginning of fiscal 1999, the company made economic value added (EVA) the binding target and control metric for all its business activities. Profitability is measured exclusively in terms of a business's or a Group's ability to generate returns exceeding the cost of capital. At the beginning of fiscal 2004, Siemens expanded its top+ business excellence program and integrated it into a newly organized Siemens Management System. Siemens will now focus on three company-wide programs: Innovation, Customer Focus and Global Competitiveness. This will enable the company to build on its traditional strengths as a global network of innovation: on its strong business portfolio, its power of innovation, its customer orientation, its global presence and its sound financial management.

The Siemens China operations are a major pillar of the Siemens business in Asia-Pacific and increasingly important for Siemens' global operations. All business segments of Siemens worldwide are active in China including Information and Communications, Automation and Control, Power, Transportation, Medical, Lighting as well as Household Appliances. Core business areas are infrastructure development and industrial solutions.

Siemens is one of the most well-known, liked and respected corporate citizens in China. And this is not surprising given Siemens long history of co-operation dating back to 1872, when the company delivered China's first pointer telegraph. Siemens has witnessed the tremendous changes that have taken place since China's opening up and reform drive started 25 years ago and is proud to be a reliable, committed, and trustworthy partner in China's development. To date, Siemens has established more than 45 operating companies and 38 regional offices in China. These offices are the backbone of Siemens' regional marketing strategy and ensure that the company is close to its customers to be able to respond quickly and efficiently to their needs. With over 31,000 highly qualified local staff, Siemens is one of the largest employers amongst foreign invested enterprises in China. The company has been striving to become a fully integrated part of the Chinese economy and is committed to continue its investment to develop and extend local manufacturing, engineering, R&D, software development, as well as procurement activities to ensure the sustainable and profitable growth of its business in China.

Editor: Donald