<p><strong>Siemens share price </strong></p><p><strong>Stock market trend </strong>(XETRA closing prices, Frankfurt, in euros) </p><p>indexed </p><p></p><ul style="display: flex;"><li style="flex:1"><strong>Low: 32.05 </strong></li><li style="flex:1"><strong>High*: 68.60 </strong></li></ul><p></p><p><strong>200 </strong><br><strong>Siemens DAX </strong><br><strong>180 </strong></p><p><strong>160 140 120 </strong><br><strong>Dow Jones Stoxx </strong><br><strong>100 </strong><br><strong>80 </strong></p><p></p><ul style="display: flex;"><li style="flex:1"><strong>Nov. </strong></li><li style="flex:1"><strong>Jan. </strong></li></ul><p><strong>2003 </strong></p><ul style="display: flex;"><li style="flex:1"><strong>March </strong></li><li style="flex:1"><strong>May </strong></li><li style="flex:1"><strong>July </strong></li><li style="flex:1"><strong>Sept. </strong></li><li style="flex:1"><strong>Nov. </strong></li><li style="flex:1"><strong>Jan. </strong></li></ul><p><strong>2004 </strong></p><p><strong>*as of January 19, 2004 </strong></p><p><strong>Key figures – Fiscal 2003 </strong></p><p>in billions of euros </p><p><strong>Percentage </strong></p><p><strong>2002 </strong></p><p><strong>2003 </strong></p><p><strong>change </strong></p><p><strong>Net income </strong></p><p><strong>2.445 4.295 </strong></p><p><strong>1.661* + 47 </strong><br><strong>3.756 + 14 </strong></p><p><strong>Group profit New orders Sales </strong></p><p><strong>75.056 86.214 - 5** </strong></p><p><strong>84.016 </strong></p><p><strong>5.712 5.564 + 3 </strong></p><ul style="display: flex;"><li style="flex:1"><strong>74.233 </strong></li><li style="flex:1"><strong>- 4** </strong></li></ul><p></p><p><strong>Net cash provided by operating activities </strong></p><p><strong>* excl. €936 million from sales of Infineon shares ** Adjusted for currency effects and portfolio activities </strong></p><p><strong>Employees (I) </strong></p><p><strong>2002* </strong></p><p><strong>2003* </strong></p><p><strong>Change </strong></p><p><strong>426,000 - 9,000 175,000 - 5,000 </strong><br><strong>Worldwide Germany </strong></p><p><strong>417,000 </strong><br><strong>170,000 </strong></p><p><strong>Outside Germany </strong></p><p><strong>247,000 251,000 - 4,000 </strong></p><p><strong>* September 30 </strong></p><p><strong>Employees (II) </strong></p><p><strong>2% reduction worldwide Success in training and placement 5,000 new hires in Germany 12,000 in training programs </strong></p><p><strong>Operation 2003 (I) </strong></p><p><strong>Margin targets </strong></p><p><strong>8 of 9 Groups achieved targets </strong></p><p><strong>Q403 FY03 Target </strong></p><p></p><ul style="display: flex;"><li style="flex:1"><strong>PG </strong></li><li style="flex:1"><strong>Power Generation </strong></li></ul><p><strong>Medical Solutions Automation & Drives </strong><br><strong>11.3 16.8 10 – 13 </strong></p><ul style="display: flex;"><li style="flex:1"><strong>14.0 15.1 11 – 13 </strong></li><li style="flex:1"><strong>Med </strong></li></ul><p><strong>A&D Osram PTD TS </strong><br><strong>10.5 10.3 </strong><br><strong>7.4 </strong><br><strong>9.6 11 – 13 9.8 10 – 11 </strong><br><strong>Power Transmission and Distr. Transportation Systems </strong><br><strong>6.1 6.0 5.0 </strong><br><strong>5 – 7 5 – 7 5 – 6 </strong><br><strong>5.5 </strong></p><ul style="display: flex;"><li style="flex:1"><strong>SV </strong></li><li style="flex:1"><strong>Siemens VDO Automotive </strong></li><li style="flex:1"><strong>5.8 </strong></li></ul><p></p><ul style="display: flex;"><li style="flex:1"><strong>SFS* Siemens Financial Services </strong></li><li style="flex:1"><strong>20.5 24.9 18 – 22 </strong></li></ul><p></p><ul style="display: flex;"><li style="flex:1"><strong>SBT </strong></li><li style="flex:1"><strong>Siemens Building Technologies 2.7 </strong></li><li style="flex:1"><strong>2.0 </strong></li><li style="flex:1"><strong>7 – 9 </strong></li></ul><p></p><p><strong>*) Return on shareholders' equity before income taxes </strong></p><p><strong>Operation 2003 (II) </strong></p><p><strong>Power Generation </strong></p><p><strong>Demag Delaval successfully integrated Alstom industrial turbines round out product range </strong></p><p><strong>Offerings for oil & gas industry expanded </strong></p><p><strong>Operation 2003 (III) </strong></p><p><strong>Siemens VDO Automotive </strong></p><p><strong>Exemplary integration of VDO A leader in driver information systems, airbag controls and gasoline injectors </strong></p><p><strong>Among the top players in navigation and diesel injection systems </strong></p><p><strong>Rigorous cost and quality management Margin targets fully achieved </strong></p><p><strong>Operation 2003 (IV) </strong></p><p><strong>Information and Communications </strong></p><p><strong>IC Mobile and SBS back in the black since 2002 </strong></p><p><strong>IC Networks back in the black in Q4 of 2003 </strong></p><p><strong>Capacity adjustments and innovations </strong></p><p><strong>Record cell phone sales in Q1 of 2004 </strong></p><p><strong>New cell phones (I) </strong></p><p><strong>SX1 </strong></p><p><strong>Fashion EUR/APAC </strong></p><p><strong>CL50 </strong><br><strong>S57 </strong></p><p><strong>SL55 </strong><br><strong>Xelibri 1-4 </strong><br><strong>Xelibri 5-8 </strong></p><p><strong>HIGH-END </strong></p><p><strong>CL55 </strong></p><p><strong>ASIA </strong><br><strong>ENTRY </strong></p><p><strong>MC60 </strong></p><p><strong>US </strong></p><p><strong>C60 </strong><br><strong>CT56 </strong></p><p><strong>SL56 </strong></p><p><strong>New cell phones (II) </strong></p><p><strong>SL 55 – The star </strong></p><p><strong>Operation 2003 (V) </strong></p><p><strong>Siemens Dematic </strong></p><p><strong>Provisions for old burdens Postal automation reorganized Pick-and-place machines in the black </strong></p><p><strong>Integration in Siemens AG planned </strong></p><p><strong>Operation 2003 (VI) </strong></p><p><strong>Industrial Solutions and Services </strong></p><p><strong>Capacity adjustments Restructuring Back in the black in 2004 after two years of losses </strong></p><p><strong>Operation 2003 (VII) </strong></p><p><strong>Reduction of central costs </strong></p><p><strong>€1 billion cut in three years </strong></p><p> <strong>Nearly half at Corporate headquarters </strong> <strong>More than half at Group and Regional headquarters </strong></p><p><strong>Operation 2003 – Summary </strong></p><p><strong>Group margin targets unchanged 8 Groups consolidating their success </strong></p><p><strong>Margin targets </strong></p><p><strong>6 Groups following suit </strong></p><p><strong>FY 03 </strong></p><p><strong>- 5.1 </strong><br><strong>1.8 </strong></p><p><strong>Target </strong></p><p><strong>8 – 11 8 – 11 5 – 6 </strong><br><strong>ICN IC Networks* ICM IC Mobile SBS Siemens Business Services I&S Industrial Solutions and Services SD Siemens Dematic </strong><br><strong>0.2 </strong><br><strong>- 1.0 - 8.4 </strong><br><strong>2.0 </strong><br><strong>4 – 6 7 – 9 </strong></p><ul style="display: flex;"><li style="flex:1"><strong>SBT Siemens Building Technologies </strong></li><li style="flex:1"><strong>7 – 9 </strong></li></ul><p></p><p><strong>* + 2.9 in Q4 </strong></p><p><strong>Siemens Management System </strong></p><p><strong>company programs </strong></p><p></p><ul style="display: flex;"><li style="flex:1"><strong>Innovation </strong></li><li style="flex:1"><strong>Customer focus </strong></li><li style="flex:1"><strong>Global </strong></li></ul><p><strong>competitiveness </strong></p><p></p><ul style="display: flex;"><li style="flex:1"><strong>Initiatives: </strong></li><li style="flex:1"><strong>Initiatives: </strong></li><li style="flex:1"><strong>Initiatives: </strong></li></ul><p></p><p></p><ul style="display: flex;"><li style="flex:1"><strong>Platform strategies </strong></li><li style="flex:1"><strong>Winning new customers </strong></li><li style="flex:1"><strong>Software initiative </strong></li></ul><p></p><ul style="display: flex;"><li style="flex:1"><strong>Trendsetting technologies </strong></li><li style="flex:1"><strong>Project management@Siemens </strong></li></ul><p><strong>Cross-selling initiative </strong></p><p><strong>Worldwide manufacturing concept </strong><br><strong>Shared services Asset management </strong><br><strong>Service initiative </strong><br><strong>Quality and process initiative </strong></p><p></p><ul style="display: flex;"><li style="flex:1"><strong>Existing </strong></li><li style="flex:1"><strong>activities will be consolidated </strong></li></ul><p></p><p><strong>"Go for profit and growth" (I) </strong></p><p><strong>Innovation program </strong></p><p><strong>Platform strategies </strong></p><p><strong>Examples: Medical Solutions </strong><br><strong>Automation & Drives IC Networks </strong></p><p><strong>Trendsetting technologies </strong></p><p><strong>Examples: Medical Solutions </strong><br><strong>Transportation Systems Siemens VDO Automotive IC Networks / IC Mobile </strong></p><p><strong>"Go for profit and growth" (II) </strong></p><p><strong>Customer focus program </strong></p><p><strong>Target regions </strong></p><p><strong>Russia </strong><br><strong>China </strong><br><strong>Europe </strong><br><strong>USA </strong><br><strong>Japan </strong></p><p><strong>India </strong></p><p><strong>"One Siemens" – </strong><br><strong>Cross-Group offerings </strong></p><p><strong>"Go for profit and growth" (III) </strong></p><p><strong>Global competitiveness program </strong></p><p><strong>Global procurement Exploit cost advantages in </strong></p><p> <strong>Production </strong> <strong>Software </strong> <strong>Engineering </strong> <strong>Administrative functions </strong></p><p><strong>Key figures – Q1 of fiscal 2004 </strong></p><p>in billions of euros </p><p><strong>Q1 03 </strong></p><p><strong>Q1 04 </strong></p><p><strong>Net income Group profit New orders Sales </strong></p><p><strong>0.726 1.361 </strong></p><p><strong>0.521 </strong><br><strong>1.097 </strong></p><p><strong>20.490 18.329 </strong><br><strong>0.064 </strong></p><p><strong>20.145 18.845 - 0.695 </strong></p><p><strong>Net cash* </strong></p><p><strong>* Excluding cash contributions for pension plans </strong></p><p><strong>Siemens – Global network of innovation </strong></p><p><strong>Robust business portfolio Power of innovation Global presence Sound financial management Corporate governance Corporate responsibility </strong></p>
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