Facts & Figures 2014 - Siemens€¦ · · 2014-04-15Financial Services Financial Services Facts & Figures 2014

Financial Services

Financial Services

Facts & Figures 2014

www.siemens.com/finance

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Financial Services (SFS)

Financial Services at a glance

Our business

Organization

Global presence

Financial solutions for Siemens

Content

Products and solutions

Commercial Finance

Equipment Finance & Leasing

Vendor Finance

Project & Structured Finance

Financial Advisory & Structuring

Equity Investments

Debt Financing

Working Capital Finance

Leveraged Finance

Venture Capital & Private Equity

Trade Finance Advisory

Insurance

Insurance Solutions

Private Finance Solutions

Pension Management

Asset Management

Treasury

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Financial Services (SFS) at a glance

In millions of €1 20132

Equity 1,938

Income before income taxes (IBIT) 409

ROE (after tax) [%] 17.1

Total assets 18,661

Employees 3,007

New business 7,826

As of end of fiscal year1 Equity, IBIT, total assets and new business2 Fiscal year: October 1 to September 30

Current key figures of Financial ServicesWe are an international provider of business-to-business finan-cial solutions. Leveraging our specialist financing and technol-ogy expertise in the areas of energy, healthcare, industry and infrastructure and cities, we support customer investments with leasing solutions and equipment, project and structured financ-ing. We provide capital for Siemens customers as well as exter-nal companies and serve as an expert adviser for financial risks within Siemens. Our financial and industry know-how creates customer value and enhances customer competitiveness. And the fact remains: Financing builds trust in new technologies and facilitates their market launch.

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Our business

Strategy and outlook

The success of Financial Services is built on a unique combina-tion of risk competence, technological expertise and reliable financial resources.

Financial Services is becoming more and more important as a differentiator for Siemens. In addition to the technical feasibility of solutions, customers are placing an increasingly strong focus on financial support for their investments. We help Siemens to tap into new business opportunities, support the acquisition of new customers and strengthen existing business relationships with financial decision-makers. Building on the strength of our balance sheet, we provide financial solutions for Siemens’ proj-ects and products, open the way for new business ideas such as pay-per-use financing models and public private partnerships, and signal confidence to the markets through long-term risk participation. In collaboration with Siemens units and custom-ers, we make visionary technology a reality.

Third-party customers benefit from our experience and sound risk assessment in Siemens’ markets: To expand our portfolio and to optimally position our products and services in the market, we serve customers outside the Company as well.

Additionally, we provide expert financial risk management to Siemens. In one aspect of this work, for example, we team up with the Siemens Sectors and external partners to analyze insurable risks and optimally transfer them to the market. Or we find reliable financing partners to participate in large-scale project financing.

To achieve our goals and sustainably provide the best-possible support to Siemens, we focus on controlled, profitable growth.

Total assetsin billions of €

Financial Services’ business performance

11.712.5

14.6

17.4

In millions of €1 20092 20102 20112 20122 20132

Equity 1,243 1,459 1,593 1,790 1,938

Income before income taxes (IBIT)

304 443 428 479 409

Employees 1,877 2,082 2,604 2,916 3,007

New business (reported from 2010)

– 4,111 6,301 7,258 7,826

As of end of fiscal year1 Equity, IBIT, new business2 Fiscal year: October 1, to September 30

18.7

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Organization

Business units – activities and key figures1

Our organizational structure reflects the needs and expectations of our customers within and outside of Siemens.

COF PSF-E PSF-IC&I PSLF-H INS TRE FIM

Commercial Finance

Project & Structured Finance Energy

Project & Structured Finance Infra-structure and Cities & Industry

Project, Structured & Leveraged FinanceHealthcare

Insurance Treasury Financing & Investment Management

VC*

Venture Capital


Vendor Finance

Financial Advisory

Debt Financing Equity Investments

Financial Advisory

Debt Financing Equity Investments

Financial Advisory

Debt Financing Equity Investments Leveraged Finance


Insurance Solutions


Treasury Solutions for Siemens

Asset Management


Total assets: €6.9 billion




Max. transfer-red risk to the market: €90 billion

Total assets under management:€72.7 billion

Total assets under management: €14.1 billion

1 As of September 30, 2013 *Business Segment

Management

Siemens Financial Services

Roland Chalons-Browne Peter Moritz CEO CFO

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Equiment Finance & Leasing provided by SFS companies

Project & Structured Finance offered to Siemens units by designated in-country teams

Project & Structured Finance offered to Siemens units by regional teams

Important SFS locations

Current equity investments (per country)

North and South America

In billions of €

Total assets 8.1

Project volume with financing requirements

4.1

Asia, AustraliaIn billions

of €

Total assets 1.0


1.4

Global presence

Europe, Africa, Middle East, CIS

In billions of €

Total assets 9.5


15.9

As of September 30, 2013

London

Paris

Madrid

Singapore

MunichErlangen

Umeå

Warsaw

Sydney

Istanbul

Mumbai

New YorkIselinMalvern

São Paulo

Vienna

Houston

Toronto

Atlanta

Beijing

Vladivostok

Palo Alto

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Overview

Customer example: IndustryFinancial solutions for Siemens

Jiangsu Jinggong Special Materials Co., Ltd., China

Jiangsu Jinggong Special Materials Co., Ltd. (Jinggong) is one of the top three High Speed Steel (HSS) producers in China. In 2013 the business planned to acquire an EUR 8 million world-class radial forging machine, incor-porating a Siemens SIMATIC S7 Programmable Logic Control module.

Due to the high cost of the investment, Jinggong sought a financing solution from SFS China. At the outset, SFS worked closely with Siemens Industry and the radial forg-ing machine manufacturer, GFM GmbH, to acquire a deep understanding of the equipment and its expected use. Based on the equipment’s forecasted output, SFS designed a leasing solution that allowed Jinggong to realize an immediate return from the new machine center. Addi-tionally, SFS liaised closely with the importer in order to ensure timely delivery and installation of the equipment.

The new machine center increased Jinggong’s production of HSS by more than 50% and at the same time reduced labor costs by 70% and energy consumption by 50%. The increased revenue and cost savings more than cov-ered the leasing payments. As a result, Jinggong success-fully expanded its production and consolidated its market position.

“Working with SFS was a real pleasure. Everything went as planned and our demands were met perfectly. Initially we hesitated before making the investment due to the high cost, but after SFS presented their leasing solution, we knew the collaboration would be a success. The effective-ness and expert nature of SFS was impressive,” said Zhu Chang Hong, Chairman of the Board at Jiangsu Jinggong Special Materials Co., Ltd.

We create value for the company by enabling new financial and technology models through our financial expertise.

The global energy market is undergoing a fundamen-tal transformation toward smart solutions with a richer energy mix. In line with this shift we provide tailored financial solutions for investing in innovative technolo-gies such as those related to renewable and conventional power plants. It is our goal to match the efficient use of resources with economic rationality.

As the world of healthcare continues to evolve, we offer customized financial products for investments in medical technologies – accelerating the transition to affordable and patient-centric healthcare. This applies equally to hos-pitals and doctors’ offices as well as to medical laborato-ries and diagnostic imaging centers.

The industry market is also changing and moving toward connecting productivity and efficiency. Our solutions in this global arena enable cash-saving investments to be made in the innovative equipment and infrastructure offered by Siemens. Our products and solutions range from leasing offers and performance contracting models to project financing.

Global growth concentrated in urban centers represents a tremendous investment and financing need. There is ris-ing demand for imple-menting and renewing infrastruc-tures not only in the megacities of emerging countries, but also in urban areas in Europe, the U.S. and Asia. This need includes solutions for public transportation as well as energy-saving building technologies. Here, for exam-ple, we apply our expertise in the area of public private partnerships.

We capitalize on the fact that we know our customers’ markets from years of firsthand experience gained as a part of Siemens. This forms the foundation of our ability to create solutions that help our customers become more successful in their markets. Financial Services is uniquely placed to understand risk, enable opportunity and support long-term business performance. Our people, our engi-neering heritage and our financial expertise allow growth to happen in new ways.

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Thameslink Rolling Stock Programme in London, UK

Panda Liberty power plant in Pennsylvania, USA

Customer example: Infrastructure & Cities

Customer example: Energy

Siemens Energy was awarded an order to supply two power plant blocks for the Liberty combined cycle power plant in Pennsylvania. The order includes a long-term service agreement and has a total value of approximately USD 400 million.

Thanks to the H-class technology, this plant will be one of the most modern gas-fired power plants on the East Coast of the United States. It will be able to supply up to one million homes with clean power. Commissioning of the plant is scheduled for 2016. The power plants enable Panda Power Funds to reduce their carbon dioxide emis-sions by more than 330 million tons.

Financial Services is providing financing to aid in the project’s construction through a USD 50 million term loan.

Kirk Edelman, CEO of Project and Structured Finance for the Energy sector at SFS said, “SFS’s involvement in such an innovative project underscores how we can provide a complete solution to our customers while also helping to support sales of Siemens’ advanced equipment.”

Thameslink is a 225-kilometer-long British rail line from Bedford over London on to Brighton. Because ridership on the line has risen steeply in recent years, Siemens developed a new rail vehicle called Desiro City, which can transport up to 25% more passengers than the previ-ous model. Financial Services contributed to the comple-tion of a 25-year financing package for Thameslink. In this context, SFS is participating in the equity and debt components of the overall project, which will finance both the manufacturing of 1,140 train carriages and the construction of two depots.

Thameslink is set up as a public private partnership between the Department for Transport and the project consortium Cross London Trains (XLT). Along with two partners, SFS acts as an equal shareholder in the GBP 177 million equity of XLT. The construction and lease of two depots are financed through an innovative receiv-ables purchase agreement between SFS and Siemens UK.

In addition to providing capital to the project, SFS acted in an advisory and arranging capacity, playing a vital role in securing the overall debt financing. In addition to a group of 19 banks, the European Investment Bank was a major lender to the facility.

Johannes Schmidt, CEO of Project and Structured Finance for the sectors Infrastructure & Cities and Industry at SFS, said: “Whether acting in a specialist advisory, structuring or relationship-building capacity, SFS’s leadership helped to galvanise stakeholder confidence and build the critical momentum needed to secure this landmark deal.”

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Products and Solutions

Bendigo Hospital in Victoria, Australia

A consortium including Siemens Financial Services and Lend Lease has been granted the concession for the design, construction, maintenance and financing of a new 372-bed general hospital in Bendigo, Victoria.

The government of Victoria selected the consortium, in which SFS holds a 50 % stake in equity, to deliver the new hospital as part of a public private partnership. The overall contract totals AUD 630 million. As an integral member of the consortium, Siemens is also participating in the senior debt financing.

Financial Services’ involvement in the public private part-nership also paves the way for Siemens to work closely with Bendigo Hospital on a range of cutting-edge tech-nologies. The new hospital will include state-of-the-art operating rooms, an integrated cancer center, a radia-tion therapy system, and a psychiatry unit with inpatient treatment.

“The new Bendigo Hospital is an important health care facility for the region and further establishes Siemens as a key player in the construction of major healthcare facilities in Australia,” says Anthony Casciano, CEO of the Project, Structured and Leveraged Finance Healthcare unit of Financial Services.

“We are delighted to have an international company of Siemens’ standing and reputation involved in this impor-tant project”, says Tony Lubofsky, the Victorian Govern-ment Project Director. “Siemens has the ability to offer significant value to the project, not just as a financier, but also in terms of the technologies and other expertise it is able to contribute.”

Customer example: Healthcare

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Contact

Siemens Financial Services GmbH Phone +49 89 636-31170 [email protected]/leasing

Commercial Finance


Our innovative portfolio of products and services com-prises various financing options such as finance lease, operating lease, hire purchase, rental, loans and soft-ware financing as well as managed services. We also offer our customers flexible, usage-based financing for their equipment investments, such as pay-per-use pro-grams. Our services cover the management of financed assets as well as end-of-term issues, including logistics, equipment servicing and remarketing.

Our specialized asset-financing knowledge covers a wide range of areas, including the healthcare, industrial (e.g., construction, mining, manufacturing, food and beverage), transportation, agricultural, environmental, energy and office-equipment sectors as well as software, information and communication technology.

As the financing partner for the operative Siemens units, we leverage our many years of experience and technol-ogy know-how to create integrated financial solutions that complement the Siemens portfolio.

We offer a comprehensive range of equipment finance and leas-ing solutions to organizations of all sizes requiring financing for equipment from Siemens or third-party providers. Our custom-ers range from large and medium-sized companies, international corporations, municipalities and public-sector entities to small, privately owned businesses.

What sets us apart:

• Easier financing – through exceptional customer service and seamless processes

• Customized solutions that build on a combination of financial expertise and industry know-how

• Unique financing solutions for each market, tailored to meet each customer’s individual needs

• Smooth implementation of complex international transactions through the global Siemens network

• Expertise in country-specific tax and legal systems

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Contact

Siemens Financial Services GmbH Phone +49 89 636-31622 [email protected]/vendor-finance

ChinaPhone +86 10 [email protected]/finance

DenmarkPhone +45 [email protected]/finance

FinlandPhone +358 [email protected]/finance

FrancePhone +33 1 [email protected]/finance

GermanyPhone +49 5258 989-100 [email protected]/leasing

IndiaPhone +91 22 [email protected]/finance

NorwayPhone +47 [email protected]/finance

PolandPhone +48 22 [email protected]/leasing

RussiaPhone +7 423 [email protected]/finance

SwedenPhone +46 90 [email protected]/finance

SpainPhone +34 91 [email protected]/renting

TurkeyPhone +90 212 251 02 07 [email protected]/leasing

United KingdomPhone +44 1753 [email protected]/ financialservices

United StatesPhone +1 800 [email protected] www.usa.siemens.com/finance

Commercial Finance

Vendor Finance

We deliver financing solutions specifically tailored to our vendor partners’ sales objectives, distribution chan-nels and processes. Our sales teams around the world are available to provide a full range of support to our partners.

Our aim is to ensure that businesses have the sales-financing tools needed to drive sales and improve their competitiveness. We combine specialized vendor financ-ing knowledge with vendor-oriented processes and prod-ucts to deliver an expert, performance-focused service.

We support the business-finance needs of national and interna-tional manufacturers, vendors and channel sales partners with vendor financing programs. Our specialized financing solutions are tailored to suit individual vendors and their markets.

Country contacts

What sets us apart:

• Fast, efficient vendor-oriented processes

• Innovative e-business solutions

• Market know-how, especially in the healthcare and industry areas, information and communication technology, construction, office equipment and agriculture

• Support for international vendor programs with our global teams of experts

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Financial Advisory & Structuring

We devise solutions on behalf of Siemens that balance the requirements of the projected parties, meaning customers, suppliers and capital providers. We have created and greatly benefit from our well- and long-established relationships with members of the global financial community in order to realize projects. Our services are provided by our highly qualified team that has extensive financial, business and regional expertise.

Our service spectrum covers:

• Analysis of all aspects and risks related to project finance and review of the financial viability of projects

• Financial advisory services as well as structuring, arrangement and implementation of tailored and competitive financing concepts

• Design of financing-relevant components in the supplier agreement

• Coordination with customers, financial advisers and other customer consultants

• Negotiations with credit and investment insurers, national and international financing institutions and other project participants

We act as a financial adviser to the operating units of the Siemens Group and structure, as well as arrange and imple-ment project and structured financing worldwide. Specifically, we review alternative financing solutions and risk-mitigation concepts for projects and are typically engaged in the early stages of projects in order to ensure cohesive and comprehen-sive project development that takes financial aspects into con-sideration from day one. We work on projects in the Energy, Healthcare, Industry and Infrastructure & Cities Sectors.

What sets us apart:

• Tailored advisory services for financing solutions from a single source

• Handling of successful projects in Siemens-relevant Sectors worldwide

• Global network of financing partners – a close relationship with leading members of the international financing community

• Ability to introduce equity and debt finance using SFS’s balance sheet

www.siemens.com/financial-advisory

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Equity Investments

Our activities focus on the Energy, Healthcare, Indus-try and Infrastructure & Cities Sectors, with investments in power plants, transportation infrastructure projects (including airports and railroad projects) and healthcare projects.

We primarily focus on projects in which Siemens plays a key technological role in construction, operation or main-tenance – usually as a general contractor or supplier of core components. We support projects that promise an appropriate return in terms of the project’s risk profile, which requires considering country and market risks and project specifics such as construction and operating risks.

What sets us apart:

• Extensive experience in the development and structuring of major international projects

• Excellent access to global capital markets and hedging instruments

• In-depth expert knowledge in the relevant industry sectors

• An international presence through Siemens’ global network

Jointly with our partners, we invest in promising infrastructure projects worldwide. Typical project volumes range in general from about EUR 100 million – or from EUR 50 million for Healthcare – to more than EUR 1 billion.

www.siemens.com/equity

A snapshot of our current project portfolio

Project Sector Type Country

Total project volume

(USD mn)

Jawa Power EnergyPower plant (1,220 MW coal-fired)

Indonesia 1,750

Rousch EnergyPower plant (412 MW CCGT*)

Pakistan 560

Tahaddart EnergyPower plant (384 MW CCGT*)

Morocco 280

T-Power EnergyPower plant (420 MW CCGT*)

Belgium 608

Lincs EnergyOffshore wind (270 MW)

UK 1,730

Butendiek EnergyOffshore wind (288 MW)

Germany 1,750

SMart Wind EnergyOffshore wind (4,000 MW)

UK n/a

Arava Power Company

Energy Photovoltaic Israel n/a

BendigoHealth-care

452-bed hospital PPP project

Australia 850

Sunshine Coast University Hospital

Health-care

738-bed hospital PPP project

Australia 2,000

Bangalore IndustryInternational airport (10 mn pax)

India 585

Thameslink IndustryTrain fleet (1,140 carriages)

UK 2,900

* Combined cycle gas turbine

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Debt Financing

Understanding the drivers for investment decisions, we build strong relationships by providing reliable, con-sistent and competitive customized financial solutions to meet our customers’ needs.

The spectrum of our solutions ranges from senior secured corporate loans to mezzanine debt and from structured investment financing (e.g., leases and loans) to public private partnership and project financing. In addition, our portfolio includes acquisition and growth financing, typically as syndicated loans.

Offered worldwide, our structured finance solutions are tailored to the individual needs of our customers in both the public and private sectors and help custom-ers enhance their competitiveness and exploit growth opportunities.

Our structured financing solutions combine in-depth industry know-how and financial expertise. We focus on providing tailored financing solutions for the Energy, Healthcare, Industry and Infrastructure & Cities Sectors – covering both the public and private sectors.

What sets us apart:

• Our ability to structure, underwrite and hold positions

• A wide range of loan and leasing solutions

• Our capability to structure long maturity transactions

• Access to leading financial institutions as a syndication partner

• Our staff of highly capable professionals who have significant industry experience

• Flexibility to lead, arrange or participate in transactions according to customer needs

www.siemens.com/debt

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Asset-based lending

Asset-based lending (ABL) is a specialized loan product that provides fully collateralized credit facilities to bor-rowers with high financial leverage and marginal cash flows. These loans are based on the assets pledged as collateral and are structured to provide a flexible source of working capital by “monetizing” assets on the balance sheet.

Trade finance

Our trade-payables program in the United States increases cash flow and significantly reduces our clients’ days-sales outstanding (DSO) by offering immediate payment of approved invoices at a competitive cost of capital.

Our working capital finance solutions are designed to help our clients manage their cash flow through revolving lines of credit, term loans and trade finance facilities. Through our asset-based lending and trade-finance solutions, we serve the Sectors of Energy, Healthcare, Industry and Infrastructure & Cities, offer-ing these solutions mainly to customers in the United States, Canada, the United Kingdom and Australia.

What sets us apart:

• Our ability to leverage the industry expertise of the entire Siemens Group and marry this insight with innovative financial products

• As a business unit of a worldwide industrial company, we have the financial strength and commitment to support our clients

www.siemens.com/working-capital-finance

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Leveraged Finance

With a deep understanding of leveraged lending, we offer financing solutions for leveraged buyouts, follow-on acquisitions, expansion capital, refinancing, mergers and recapitalization. We provide a wide array of financing products to address our clients‘ needs, including senior and mezzanine debt as well as structured products and equity co-investments.

What sets us apart:

• Proven ability and willingness to lend through economic cycles

• Strength and flexibility to structure, underwrite and hold meaningful positions

• Expertise to lend across a variety of sectors and industries

• A streamlined process that results in flawless execution

We have the flexibility to meet the challenges of today’s com-plex lending environment. With our leveraged finance solutions, we provide our global private-equity and corporate clients with cash-flow loans to help support their needs and strategic goals.


Contacts

www.siemens.com/leveraged-finance

Project & Structured Finance – Energy

Phone +1 732 [email protected] www.siemens.com/energy-finance

Project & Structured Finance – Healthcare

Phone +1 732 [email protected] www.siemens.com/healthcare-finance

Project & Structured Finance – Infrastructure and Cities

Phone +49 89 [email protected]/infrastructure-finance

Project & Structured Finance – Industry

Phone +49 89 [email protected] www.siemens.com/industry-finance

Leveraged Finance

Phone +1 732 [email protected]/leveraged-finance

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Contact

Siemens Venture Capital GmbH Phone +49 89 636-33585 www.siemens.com/venturecapital


Our goal is to identify and finance emerging innovative companies worldwide during the start-up phase (venture capital) and to provide established companies with addi-tional capital for their growth plans during the expansion phase (growth capital). Through our investment compa-nies, we offer our customers new technological solutions and tap new markets. Our focus is on growth segments in the Energy, Healthcare, Industry and Infrastructure & Cities Sectors.

To date, we have invested in more than 170 start-up companies and 40 venture-capital funds. This makes Siemens Venture Capital an integral part of Siemens’ innovative strategy and complements the Group’s in-house innovation activities.

In addition, we help the Siemens Pension Fund in Ger-many to structure their private equity portfolio. Our advisory services cover private equity investments in all regions and segments, allowing for optimal diversi-fication of investments. We also have teamed up with external institutional investors to launch a venture capital fund of funds, Siemens Global Innovation Part-ners I (SGIP). The investment policy is guided solely by the fund’s financial criteria.

We assist our partners and customers with an interna-tional team based in Europe, Asia and the United States.

We invest in emerging technology companies. In this way, we supply Siemens with innovative solutions and play a key role in Siemens’ global innovation network. We offer consulting services for the selection of private equity funds and actively manage a venture capital fund of funds.

What sets us apart:

• Venture capital and growth capital: We offer more than “just” money

• Our abitlity to leverage Siemens’ global strength to ex-pand into new regions, initiate development partnerships, integrate third-party products into our sales channels (OEM) and close marketing partnerships

• Provision of management capacity and recruitment as-sistance as well as assistance in securing new investors for follow-on financing

Private equity advisory

• Special experience with private equity investments within the Group network

Fund of funds Siemens Global Innovation Partners I

• More than 20 years of experience in fund investments

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Contact

Trade Finance Advisory (TFA) Phone +49 9131 [email protected] www.siemens.com/tradefinanceadvisory

Trade Finance Advisory

Within the scope of our governance duties for the Siemens Group, we act exclusively as an internal ser-vice provider for Siemens AG as well as for all Siemens Group affiliates worldwide.

In addition to handling the electronic notification and commenting letters of credit and payment conditions, our letter of credit department also provides advice on covering economic and political risks. We deliver customized project- and country-specific letter of credit drafts and, upon request, we will conduct a preliminary examination of documents submitted under letters of credit. For processing and hedging letters of credit, we negotiate first-class conditions with our financial partners on behalf of Siemens’ units. Furthermore, we provide facilities for the direct mail-ing of letter of credit documents to the issuing bank and for direct processing of documentary collections. Cutting-edge system platforms such as Trade Finance and DocConnect are used in this work.

In our capacity as a center of competence with global functional leadership responsibility for the trade finance business, we advise Siemens entities on all matters concerned with letters of credit, guarantees and sureties. In addition to professional advisory services, we provide innovative processing methods.

In project business our guarantee department advises the Siemens Sectors regarding risks from underlying guaran-tee and surety texts. Thanks to our far-reaching network of international financial partners, we are able to select the right guarantee-facility provider for Siemens AG and Siemens Group affiliates. We offer top conditions and guarantee- facility terms as well as professional services in accordance with international banking standards. As part of major proj-ects, our corporate guarantees and sureties are accepted by customers and banks worldwide. Siemens employees are supported by GREAT, an IT platform developed by SFS to facilitate the efficient processing and administration of guarantees and sureties.

What sets us apart:

• Highly qualified teams with long-term experience in the Siemens Group and the finance sector

• Comprehensive national and international network of banks and insurance companies

• Innovative tools for the efficient handling of letters of credit, guarantees and sureties

• Global Guarantee Facility Management to oversee the global monitoring and allocation of guarantee lines as well as efficient bank-partner management

• Professional processing and structuring of the guarantee business within the context of Siemens‘ investment and carve-out projects

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Contact

VVK Versicherungsvermittlungs- und Verkehrskontor GmbH A Siemens CompanyPhone +49 89 636-84662 [email protected] www.siemens.com/industrialinsurance

Insurance

Insurance Solutions

We provide companies with individual risk-management consulting services and tailored insurance solutions that have proven their value inside and outside Siemens.

Our portfolio includes, among other aspects:

• Qualified risk analyses and risk evaluation conducted by in-house specialists

• Professional risk-management consulting services pro-vided by recognized experts with the goal of avoiding or minimizing losses

• Review and optimization of existing insurance contracts and solutions

• Brokering, placement and implementation of global industrial insurance solutions, especially in the areas of commercial general liability, property and business inter-ruption, construction and erection all risks, transport, motor vehicle fleet and financial lines

• Analysis of project risks, competent risk consulting and structuring of risk transfers

• Project-specific insurance solutions from execution to the end of the contractual obligation, including service activities

• Continuous monitoring of implemented insurance solutions and alignment with any changed parameters

We support Siemens and other industrial companies as a skilled partner for insurable risks, including their transfer to insurance and financial markets.

• Management of Siemens’ corporate self-insured retentions

• Brokering, placement and implementation of company-financed insurance solutions for employees

• Management and coordination of global insurance support in close cooperation with proven service-provider networks

• Active coordination and support in claims management through internal and external insurance solutions, including the selection and appointment of experts

• Advice and support within Siemens for insurance issues during M&A activities

What sets us apart:

• Comprehensive advice and consulting relating to industrial company insurance risks

• Systematic collection, assessment and controlling of risks

• Development and rollout of innovative loss-prevention programs

• Extensive industry experience combined with insurance expertise as a broker for Siemens

• Tailor-made and proven risk-transfer solutions for Siemens and its customers

• Worldwide support, including access to international service-provider networks

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Contact

Siemens Private Finance Versicherungs- und Kapitalanlagenvermittlungs-GmbH Phone +49 89 636-83434 [email protected] www.siemens.de/spf (user name: spf; password: Vorsorge!)

Insurance


We offer products and financial solutions in the areas of insurance, retirement planning and residential mortgage financing:

• Insurance: personal accident, health, homeowners, personal liability, car, residential building and legal expenses insurance

• Retirement planning: pension, occupational disability, life and capital life insurance

• Residential mortgage financing: initial and follow-up financing, modernization and home-purchase savings plans

On our website, customers will find comprehensive infor-mation as well as insurance-premium calculators for the products arranged by us. Applications can be submitted and partly concluded online.

We offer a comprehensive portfolio of attractive and high-quality financial-services products for employees and retirees (as well as their dependants) of Siemens and for employees of unaffiliated companies in Germany.

What sets us apart:

• Quality-checked offers

• Products exclusively from recognized partners

• Attractive conditions and favorable premiums for employees with group discounts

• Professional advisory services and customer support at three Siemens locations in Germany

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Contact

SiemensFonds Invest GmbH Phone +49 89 636-35222 [email protected] www.siemens.com/asset-management

Contact

Tel. +49 (89) 636-33021 Email: [email protected] www.siemens.com/pension-management

Pension Management Asset Management

This involves the analysis and strategic planning of asset allocation and the selection of asset managers, as well as conducting professional performance and risk analysis and global risk management for the pension portfolio. This also includes the global coordination of pension topics for Siemens’ M&A activities.

What sets us apart:

• Many years of experience as an institutional investor in both traditional and alternative asset classes

• Structuring and implementation of innovative overlay-management and funding concepts

• An intensive focus on risk management of assets and liabilities e.g. with regard to interest, inflation and longevity risks

• A deep understanding of a complex global structure that is subject to specific regulation at a local level

Institutional and private investors can choose from a broad range of mutual funds and customized special funds. We pursue a systematic quantitative investment process in portfolio construction and monitoring.

Our qualified and dedicated portfolio management team shows a high level of flexibility in the develop-ment of customer-specific solutions. Services include benchmark consulting, tactical asset allocation, overlay management and liability-driven investment strategy. Private investors benefit equally from the extensive experience of our portfolio managers.

Aside from Siemens AG and its subsidiaries, our cus-tomers include well-known corporations, insurers, banks and private investors.

What sets us apart:

• A high level of expertise in quantitative securities management (administration of Siemens AG’s pension assets for many years)

• Complete independence from banks and insurers in investment decisions

• Attractive cost structure

• Track record: years of outperformance in pension management

Under the company-wide pension management program, we manage Siemens defined-benefit and defined-contribution pension schemes worldwide.

We offer investors a variety of innovative and proven invest-ment management solutions.

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Contact

Siemens Treasury GmbHPhone: +49 89 [email protected]/treasury-solutions

Treasury

We concentrate Group-wide liquidity on a daily basis, optimize financial risks and manage the treasury-related processes and activities of Siemens. These include:

• Bank relationship management: Coordination and optimization of the presence of bank partners in the financial markets, selection and maintenance of ac-cess to a diversified range of banks and lenders in order to limit the increasing counterpart risk from bank exposure

• A management overview of all bank accounts and corresponding transactions and the electronic trans-fer of bank statements

• Fully automated processing of global internal and external payment transactions

• Centralized management of interest-rate, currency, liquidity and credit risks as well as security prices and certain commodity price risks

• Accounting for all financial processes, including fully automated posting of all transactions

• Management of short-term liquidity to ensure the ability to pay all liabilities using cash pooling and longer-term liquidity management

On behalf of Siemens, we act as a center of expertise for all aspects of financial risk management, Group financing and payment transactions. Our global treasury know-how and the treasury-management system finavigate® have been developed on the basis of an in-house banking philosophy.

In carrying out these activities, Treasury takes management responsibility for most of the group’s liquid assets and financial liabilities and such assets’ and liabilities’ contribution toward the Siemens Group’s earnings, value and risk profile.

We manage and monitor all Group activities on capital markets, including bond issues and negotiations of credit lines.

Furthermore, we advise and educate all operative Siemens units regarding all topics related to interest-rate, currency, cash and credit-risk management. Additionally, we support the Siemens units on all financial issues during the M&A process.

In the Siemens Credit Warehouse, we bundle Siemens’ short-term trade receivables and actively manage the Group’s credit risks by selling or hedging exposure to specific customers. These receivables may provide Siemens with an additional source of liquidity, thereby strengthening Siemens’ funding flexibility. Our Credit Database provides operating units with online access to up-to-date credit ratings and valuable credit reports.

Siemens Treasury offers a Supply Chain Finance program to wholly owned subsidiaries of Siemens in North America and Europe to optimize the capital efficiency of both Siemens and Siemens suppliers. With the help of Supply Chain Finance, the Siemens Sectors can increase their liquidity without reducing the supplier’s liquidity.

This brochure contains only general, non- binding information. Its contents are based on information available at the time of publica-tion and can change at any time without prior notice. The contents of this brochure in no way represent an offer to conclude a contract.

All products and solutions offered in this brochure are subject to the legal requirements of the respective country.

© 2014 Siemens Financial Services GmbH

Publisher:

Siemens Financial Services GmbHStrategic Development (SD)80200 Munich, Germany

Phone +49 89 636 [email protected]

Status (unless stated otherwise): December 31, 2013As of 2007, all figures based on IFRS (until 2006: U.S. GAAP)

Order No. L1-Z939

www.siemens.com/finance

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