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The
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[2006]Activity Report
“Inherently forward looking”
Key Activities
A wealth of activitiesCommunications: total solution provider covering the entire commu-
nication portfolio: innovative devices, systems and services, complex
network solutions and infrastructures for operators of both wireless and
fixed networks and future-oriented IP networks for companies.
Siemens Business Services: high quality services and consulting span-
ning the whole IT value chain. In keeping with trends in the market, IT
outsourcing is a focal point of these activities.
Energy: a front-runner in power generation using gas turbines and co-
generation power plants, in power transportation and distribution, and
in energy management.
Industry: known for its breakthrough thinking and ability in the indus-
trial sector. Through integrated automation, we are able to help our cus-
tomers produce high quality products more rapidly, efficiently and cost-
effectively.
Automation and Drives: fully integratable automation products and sys-
tems, motors and frequency controllers, process instrumentation and
analysis tools, low voltage and installation equipment.
Industrial Solutions and Services: total solutions from design and deve-
lopment through building to end-to-end maintenance of production lines
and plants.
Transportation: specialist in rolling stock, such as railcars, passenger
cars, locomotives and trams. It offers a wide range of services, inclu-
ding electrification of lines, air-conditioning for rolling stock and signa-
ling systems for public transportation.
Medical Solutions: advanced total solutions for the healthcare sector:
medical imaging for diagnostic purposes and treatment, medical and ad-
ministrative software designed to optimize workflows and increase the
efficiency of hospitals and doctors’ offices.
Building Technologies: market leader in developing and implementing
intelligent total solutions for building management. Its offering includes
building automation solutions, heating, ventilation and air-conditioning
systems, fire detection, fire extinguishing and gas alarm systems, elec-
tronic security solutions, anti-intruder solutions and identification and
access control systems.
AntwerpHerentals
ZaventemBrussels
Huizingen
Namur
Luxembourg
Ninove
Ghent
Part I: 4
A word from the chairman and strategy
Milestones 2006
Foreword 4
Performance & portfolio 7
Operational excellence 10
People excellence 12
Corporate responsibility 14
Part II: 18
Development of activities in 2006
Communications 19
- Operators 19
- OTN 20
- Enterprises 20
Siemens Business Services 21
EIT 22
- Energy 22
- Transportation 22
- Industry 23
Building Technologies 24
Medical Solutions 25
Luxemburg 26
Bosch Siemens Home Appliances 27
Fujitsu Siemens Computers 27
Siemens VDO Automotive 27
ADB 27
Part III: 30
Topics and trends – Siemens’ outlook
Energy 32
Water 36
Security 38
Healthcare 42
Mobility 44
ContentsOctober 2005
De Persgroep publishers opt for Totally Integrated Power for their
new printing facilities in Lokeren. >>> page 20.
November 2005
Siemens acquires the Bewator group at international level, a key
player in access control. >>> page 22.
Medical Solutions unveils the world’s first dual source computer-
assisted tomography system, giving heart to people who may
have had a sudden stroke. >>> page 23.
February 2006
The Brussels Capital Region places an order for an integrated
security solution including fire detection for the tunnels in the
small ring road. >>> page 40.
The Federal Public Service Finance enters into an agreement for
an extensive datawarehousing and datamining project, with the
aim of detecting fraud and analyzing risk. >>> page 21.
March 2006
Siemens is made a technology partner in the MADUF project, in-
vestigating the potential of mobile TV in Flanders. >>> page 44.
April 2006
Mobistar entrusts Siemens with the operational management of
its IT data storage and archiving requirements. >>> page 21.
May 2006
Siemens BeLux is made one of the global competence centers
for water technology within the international Siemens group.
>>> page 36.
The new registered offices of Siemens in Anderlecht are officially
inaugurated. The move heralds a new mobile way of working.
Infrabel signs a major contract with Siemens for the supply, in-
stallation and maintenance of ETCS equipment on the rail net-
work. >>> page 45.
June 2006
Belgacom International Carrier Services opts to develop the first
new generation fiberoptic communication network on mainland
Europe, together with Siemens. >>> page 25
Nokia and Siemens announce that their telecom operator ac-
tivities will be merged in a 50-50 joint venture: Nokia Siemens
Networks.
You will find out more about its operations and results in Belgium
in the 2007 annual report.
Siemens and Hesse-Noord Natie ensure that Antwerp is the first
European port in the network of secure corridors. >>> page 39.
Announcement of the acquisition of Bayer Diagnostics. Following
the announced takeover of DPC in April this is the second acquisi-
tion to significantly expand the healthcare portfolio in immuno-
diagnostics. >>> page 7.
The takeover of Kühnle, Kopp & Kausch – producers of steam
generators among other things – fills a gap in the Siemens power
generation portfolio. >>> page 7.
July 2006
Siemens supports bus builder Van Hool with its products and
technologies, to develop an energy-saving hybrid bus.
>>> page 34.
September 2006
Siemens Water Technologies receives its first order in Belgium.
>>> page 37.
SNCB/NMBS awards contract to Siemens, to install security instal-
lations at 50 Belgian train stations, including camera monitoring
and intelligent image analysis. >>> page 39.
Belgian entity Enterprise Networks is given responsibility for
region “West”, covering Benelux and France. >>> page 24.
Strong growth continues to be recorded in exports, now repre-
senting 37% of sales. >>> page 9.
(*) The Siemens 2006 fiscal year runs from October 1, 2005 to September 30, 2006.
Milestones 2006*
Working for SiemensAt the end of fiscal 2006, the number of
employees working at Siemens in Belgium
and Luxembourg was 3461. They are dis-
tributed across various sites, the largest of
which are in Brussels, Huizingen and Heren-
tals. In Wallonia, most activities are centra-
lized in Namur.
Key statistics
Siemens Group in millions of euros
Siemens Group Siemens nv SBS nv ADB nv Siemens VDO Others Consolidation
BeLux Automotive nv
New Orders 1”251’5 1”082’2 103’7 58’9 12’3 15’5 -21’1
Sales 1”212’1 1”062’8 92’9 52’1 12’3 14’6 -22’7
therein direct Export 451’1 373’3 4’7 50’2 12’3 10’7
Material Investments 13’3 10’2 2’0 0’9 0’2
Personnel 3.461 2.820 384 162 9 86
Personnel Costs 311’4 248’0 42’9 12’0 0’9 7’6
Others = Siemens Holding, SFBS, Compex
Legal structure
The Siemens Group in Belgium and Luxem-
bourg comprises a number of independent
legal entities which are responsible for one or
more core activities. In most cases, Siemens
AG owns 100% of shares in the subsidiaries.
These entities market their products under
the Siemens logo and are managed at local
level. Although Siemens VDO Automotive
and ADB are wholly owned by the Group,
they use other brand names and report di-
rectly to their parent company. Fujitsu Sie-
mens Computers and Bosch Siemens Home
Appliances are 50/50 joint ventures. They
operate under their own logos and brand
names and report directly to their own head
office.
Siemens nv > Energy > Industry > Transportation > Communications > Building Technologies > Medical SolutionsSiemens Business Services nv (SBS) > IT servicesSiemens Luxemburg* > Siemens in Luxemburg
ADB nv > Products and systems for airports
Siemens VDO Automotive nv > Automotive products, systems and solutions
B/S/H Bosch Siemens Home Appliances nv > Home Appliances
Fujitsu Siemens Computers nvFujitsu Siemens Computers IT Product Services nv
*Branch offices of Siemens nv and Siemens Business Services nv
vooruitziend
Dear Reader,
2006 was a radical year for Siemens. Major decisions were taken at Siemens international level, impacting significantly on our re-
gion. Yet we still managed to meet our operational goals thanks to the drive and dedication of our employees and the trust placed
in us by our customers. Siemens focuses on the future in sectors displaying considerable potential for growth, such as Energy,
Security, Medical Solutions, Mobility and Industry, with IT solutions running as a common thread throughout. We continue to strive
for profitable growth, drawing on our power of innovation to enhance the quality of life. And because we are inherently innovative,
I am convinced we will succeed in our aim.
Challenges & opportunities
In 2006, a decision was taken at international level for the
two departments within Communications, namely Networks
and Enterprise, to look for partners to strengthen their market
position. We are convinced that by pooling expertise within
new partnerships, we will gain and retain a position among
the world’s top players.
In 2007, Siemens in Belgium and Luxembourg will undoubt-
edly take on a new look. Driven by the market and our cus-
tomers, we are facing a unique opportunity and challenge to
adapt the structure of our company accordingly. Under the
name of Go4 BeLux, we are preparing the ground for the next
few years.
We ask all our employees for their open and creative input to
help shape the future of the company. Based on their contri-
bution and on thorough research, we are mapping out an or-
ganization to reflect our culture and respond to market expec-
tations. Existing structures and processes are being reviewed
and evaluated. After all, we don’t just want to guarantee our
customers high quality systems and solutions. We also want
to ensure they benefit from our flexible, competitive and for-
ward-looking entrepreneurial zeal.
Our objectives remain ambitious
We are continuing to chart our strategic course, heading to-
ward sustainable growth and profitability. In our traditional
business, we want to grow twice as fast as the market. Our
local value added involves implementing innovative projects
tailored to the individual needs of our customers, generating
new business, creating new business models or tapping into
new market sectors.
Businesses in every sector are exploring ways of using
energy and natural resources more efficiently – water being
just one example. Each and every day there are reports in the
media calling for greater safety, security and protection of the
environment in which we live. In the world of healthcare,
demand for integrated solutions is growing. So too is the need
for automation and new public and industrial infrastructural
solutions. These trends or growing market sectors are evident
not just in Belgium and Luxembourg, but also in our export
markets – especially Africa.
Our key assets are our forward-looking employees, clear focus
and wide-ranging portfolio, giving us the necessary strength
and vision to really make a difference for our customers.
Foreword...activity report 2006 Foreword
4
Francis Verheughe
Chairman of the Siemens Group Belgium-Luxembourg
Fit4MoreFit4More is the strategic program that Siemens has devised with growth and profit-
ability in mind. Our strategy rests on four cornerstones. ‘Performance and portfolio’
focuses on what we do and what we want to achieve. ‘Operational excellence’ is
about the way in which we will achieve this. ‘People excellence’ describes how we
will encourage the best from our people so that we meet our objectives. And ‘corpo-
rate responsibility’ depicts how our company intends to be a good citizen.
Siemens’ unique strength is its particularly wide-ranging portfolio of activities. We offer solutions and
services in information and communication, industry, energy, transportation, building technology
and healthcare. In all these areas of activity, we foster the ambition to grow significantly faster than
the market – in a sustainable and profitable way.
Performance & portfolio
activity report 2006 Strategy
6 7
2006 was a turbulent year for Siemens in Belgium and Luxembourg. Our new orders increased from EUR 1218 million to EUR 1252 million, which is a positive sign for the future. Our sales dropped from EUR 1302 million in 2005 to EUR 1212 million in 2006, with after-tax profits falling from EUR 75.7 million to EUR 22.2 million. This de-cline with respect to the previous fiscal’s figures can partly be explained by the exceptional tax benefits in 2005 and extra costs in 2006.
We are now building up an integrated and forward-look-ing portfolio in the areas of energy, water, security, health-care, mobility and industry. This strategy is also reflected in the portfolio changes over the past year. - At the end of 2005, Siemens acquired the Bewator group,
significantly extending the portfolio of Siemens Building Technologies with access control solutions.
- The acquisition at international level of Flender Hol-ding in 2005 – which sells gear systems, motor reducers and couplings – led to effective cooperation activities between the two groups in the last fiscal year. Flender Belgium was integrated into Siemens Automation and Drives on October 1, 2006.
- The acquisitions of Bayer Diagnostics and DPC have en-riched our portfolio in the field of molecular diagnos-tics. The acquisitions are in keeping with the strategy of making Siemens the first integrated diagnostics com-pany – enabling us to offer a comprehensive portfolio from a single source. This immediately gives us a leading position on the immunodiagnostics market.
- The general interest in cogeneration and biomass in po-
wer generation continued its steady growth over the past year. Siemens reinforced its market position in this sector thanks to the takeover of Kühnle, Kopp & Kausch. This company’s range of products consists of steam turbines with outputs ranging from a few hundred kW to several MW. The takeover fills a gap in the Siemens portfolio.
The Information and communication segment underwent fundamental changes.- The Networks department – which supplies telecom
operators with telecom networks, infrastructure and services – was turned into Siemens Networks NV/SA. This company is being integrated into Nokia Siemens Networks. This 50/50 joint venture now ranks among the top three players in the global market, and has all the assets needed to continue its upward journey.
- The Enterprise department – our communication sys-tems, services and solutions for companies – was accommodated within Siemens Enterprise Communica-tions NV/SA. The responsibilities of Siemens Enterprise Communications Belgium fundamentally expanded, both within Europe and in the international arena. Talks are currently under way at international level with a view to a future partnership.
- The ‘Product Related Solutions’ department of Siemens Business Services was sold to Fujitsu Siemens Compu-ters. This sale was in line with the strategy adopted by Siemens Business Services to focus primarily on services incorporating significant added value.
Key statistics
Siemens Group in millions of euros
Siemens Group Siemens nv SBS nv ADB nv Siemens VDO Others Consolidation
BeLux Automotive nv
New Orders 1”251’5 1”082’2 103’7 58’9 12’3 15’5 -21’1
Sales 1”212’1 1”062’8 92’9 52’1 12’3 14’6 -22’7
therein direct Export 451’1 373’3 4’7 50’2 12’3 10’7
Material Investments 13’3 10’2 2’0 0’9 0’2
Personnel 3.461 2.820 384 162 9 86
Personnel Costs 311’4 248’0 42’9 12’0 0’9 7’6
Others = Siemens Holding, SFBS, Compex
Sales
Communications 34% 39%
Siemens Business Services 8% 8%
Energy 15% 8%
Transportation 2% 2%
Industry 27% 30%
Building Technologies 5% 5%
Medical Solutions 6% 5%
Others 3% 3%
2005
2006
8 9
Mali
Senegal
Burkina Faso
Central Office nov. ‘04
Benin
GhanaCameroon
Eq. Guinea
Gabon
Rep. Congo
Chad
Togo
Dem. Rep. of Congo
ExportsThere was a positive development in exports in 2006, which
drive our growth. The share of exports in group sales rose from
32% in fiscal 2005 to 37% in fiscal 2006. Non-BeLux activities
represented a total of EUR 453 million. All in all, Siemens Bel-
gium-Luxembourg operates in over 190 countries. This broad
scope of activity is essentially thanks to two entities that are
active internationally. Firstly, we are the global market leader
in mining and metros with OTN or the Open Transport Net-
work. Secondly, Siemens subsidiary ADB – world leader in
airport lighting systems – is by its very nature a highly inter-
national player.
The entities Communications, Energy and Industry are
responsible for the lion’s share of sales. Export sales genera-
ted by Communications dipped slightly from EUR 244.5 mil-
lion in 2005 to EUR 235.6 million in 2006. Energy, Industry
and Transportation recorded a significant increase in 2006
with export sales of EUR 185.7 million, compared to EUR
149.1 million the previous year.
Siemens Belgium has held business responsibility for 19 coun-
tries in West and Central Africa (WCA) since June 2004. The
Communications entity has performed particularly well in this
area. Over the last few years, we have developed, built and
upgraded a large number of communication networks, for
fixed and mobile operators as well as for companies. Since
October 1, 2006, the WCA region actually covers 20 coun-
tries, as we were also awarded business responsibility for the
Democratic Republic of Congo.
In North Africa, the Energy and Industry entities have been
consolidating our reputation as a reliable, customer-focused
and future-oriented partner for several decades now. This has
enabled us to gradually expand our options and perspectives.
Market development in Algeria, for example, where Industry
has been active for a long time with various water projects,
now also looks promising for the industrial market. Over the
next few years, our Energy and Industry entities will step up
their efforts in export business. We want to make maximum
use of existing and new partnerships also emerging from
recent acquisitions by Siemens at international level. We will
also expand our scope of activity and customer base by means
of our various competence centers.
The Medical Solutions entity received an order from the cen-
tral hospital in Dakar, Senegal. This marks a first for Medical
Solutions in Africa, with the order including commissioning
of the equipment, staff training and support for a period of
three years.
activity report 2006 Strategy
Regional Headquarter: West- and Central-Africa
Export
Export milestonesAlgeria:• We undertook a water pipeline project in Beni Haroun. • We supplied an installation of electrical and hydromechanical equip-
ment for pumping stations east of Algiers. Cape Verde Islands:• Order for the ground lighting system for the runway at Amilcar Cabral
International Airport, the principal airport in the Cape Verde Islands. Democratic Republic of Congo:• Various pumping stations in Kinshasa were completely renovated. • We won the order to review the complete high-voltage network. Gabon:• A new contract was signed with Gabon Telecom for a whole series of
projects. • A call center solution was supplied for the Ministry of Finance. Ghana:• Complete renewal of the telecommunications infrastructure for the
Ghanaian parliament. Niger:• For the operator Sonitel we digitized the DOMSAT satellite backbone and
installed a fiberoptic network. Senegal:• Large communication installations were installed for utility company
Senelec. • The Hôpital Principal in Dakar placed a first order for a CT scanner, in-
cluding commissioning, training of personnel and servicing for a three-year period.
Emphasized countries
Energy - Medical Togo
Benin
Industry - Medical Senegal
Dem. Rep. of Congo
WCA Countries (focus countries in green)
Burkina Faso
Cameroon
Central African Rep.
Chad
Gabon
Gambia
Ghana
Equatorial Guinea
Guinea Bissau
Ivory Coast
Liberia
Mali
Niger
Sierra Leone
Rep. Congo
In all our activities, we strive for operational excellence. We implement a large number
of enterprise-wide projects geared to ensure continuous improvement in three areas:
customer focus, innovation and global competitiveness.
Operational excellence
Customer focusThe goal of our customer focus program is to optimize our
partnership with existing and new customers. We want to
serve our customers as well as possible, not only by taking
a specific vertical approach to the market for each area of
activity, but also, more than ever, by offering integrated solu-
tions that span every department. Besides introducing Key Ac-
count Management, we have designated a number of market
segments that we are going to prioritize for a cross-divisional
or ‘Siemens One’ approach. In this way, we can give our cus-
tomers the benefits of our unique strength. Our wide range
of activities and in-depth knowledge of business processes in
different market segments means that we can offer innova-
tive total solutions for complex infrastructure projects such as
airports, hospitals and sports stadiums. Our integrated secu-
rity systems are a significant asset here.
InnovationInnovation drives our business: Siemens ranks number two
in patent statistics in Europe, and holds more than 53,000
patents in its portfolio. At national as well as international
level, we are constantly looking for systems and solutions that
make life easier and more pleasant.
To do so, we rely on the expertise of our research and deve-
lopment department. Siemens stands for ‘open innovation’,
at national and international level. We also work together
with the Flanders institute for the promotion of innovation by
science and technology and the Belgian interdisciplinary insti-
tute for broadband technology.
Obviously we do not just restrict ourselves to research and
development – all our employees are encouraged to let their
creativity and innovative spirit come to the fore. For instance,
we have come up with many innovative sector-related solu-
tions in this way, thanks to our many years of experience in
diverse sectors, such as banking, pulp & paper, chemicals,
telecoms, pharmaceuticals, healthcare and the public sector.
We are the preferred supplier for many businesses and organi-
zations in these sectors. This position gives us the opportunity
to develop future-oriented solutions to help customers stay
ahead of the field.
We also aim to approach and do business with our custo-
mers in an innovative way. Our goal is to develop new business
ideas, offer creative new services with high added value,
develop new forms of cooperation and explore new business
models.
Global competitivenessOur experience and expertise are pooled in various centers of
competence, to be deployed around the globe. For instance,
Siemens Belgium-Luxembourg is responsible for solutions in
the paper, glass and steel sectors in various European coun-
tries. We also enjoy extensive responsibility in the pharmaceu-
tical industry and in the field of turnkey water installations,
empowering us to convert our know-how across borders into
added value for our customers.
In addition to this, we work hard to optimize our cost struc-
ture and streamline our processes in line with best practices.
An innovative project in this respect is PM@Siemens or Project
Management @ Siemens, in which project managers are able
to run their own business in true entrepreneurial style. The
aim is to optimize and support the management of all cus-
tomer projects, whether large or small, complex or straight-
forward.
activity report 2006 Strategy
10 11
Our employees are our driving force. They are the ones who do their
utmost day after day to achieve our objectives – in the short as well as the
long term. At the same time, they are constantly on the lookout for change,
adapting our company to our rapidly changing environment.
Managing competencies
Over the last year, various projects have been launched with
the aim of getting the best out of our employees – focus has
been placed on strengthening skills and fostering leadership
qualities.
To achieve this dual objective, competence management plays
a key role. It is used to chart strengths and weaknesses – at
individual or group level – and to train employees with a tar-
geted and long-term approach. A large number of these trai-
ning courses are run in-house. This approach has enabled us
to carry out over 2000 assessments over a two-year period.
With the ‘Boost your talent’ campaign, administrative staff
were given the option to voluntarily have their skills screened
and boosted via training courses. This campaign was
launched with the assistance of Unique Interim. They carried
out screening sessions based on the most sought-after com-
petencies on the market. Afterwards, employees were given
the opportunity to do something about their weaker points
and in turn increase their employability. Our aim is not just to
further boost the talents of employees, but also to enhance
flexibility: a particular trump card in view of the global market
circumstances.
Developing leadership
Various programs, based on competence management, have
been tailored toward strengthening leadership at various
levels. At the top of the company, potential ‘successors’ were
selected for key functions in Belgium and Luxembourg. These
are employees who in time could sit on the Group’s execu-
tive committee or play a role in the successor planning of Sie-
mens in Belgium and Luxembourg. This long-term program
has already borne its first fruit – it has been possible to fill
several vacancies for senior functions immediately with inter-
nal staff.
To enable employees to attend training courses and seminars
at senior level, Siemens joined forces with other large compa-
nies. Opportunities are expanded if costs are shared.
Our cooperation with Management Trainees also falls within
this scope. It offers highly qualified employees the opportu-
nity to continue their journey up through the company.
Culture of performance
The ‘Performance Culture’ program was launched at inter-
national level, with the Belgian reward policy being applied
worldwide. For many years now in our region, we have been
rewarding our employees on the basis of their performance.
Peopleexcellence
activity report 2006 Strategy
12 13
2006 I 34612005 I 38172004 I 3994
Siemens aims to continually improve the quality of life. This means trying to improve
life not just for ourselves or for today. We want to make an active contribution to
shaping life for future generations.
‘Corporate citizenship’ is our commitment to the environment
and to economic, social and ethical issues. To guide us, we
follow a clear and transparent set of corporate rules. And in
doing so, we hope to ensure the success and future of our
company.
Corporate ResponsibilityPart of the community
activity report 2006 Siemens strategisch bekeken
14 15
Considerate employerIn today’s demanding business climate, people have to work
at an incredibly hectic pace. Through various programs, Sie-
mens ensures that employees are able to achieve a balance
between their working and private life.
The ‘location concept’ is one such program – employees are at
liberty to work in a choice of flexi-offices located throughout
the country. This concept is made possible thanks to various
new Siemens technologies. In 2006, a satellite office was also
opened in Merelbeke.
Our decision to work together with Ekivita is also based on
the desire to achieve this work-life balance. Our employees
can use the Ekivita solution at home or in the office to contact
specific service-providers at favorable rates – with the benefit
of saving time and making life easier.
Sustainable partner The optimum use of energy and non-renewable natural re-
sources is one of our prime concerns. To this end, we offer our
customers a variety of products, systems and services, ranging
from environmentally friendly co-generation power plants and
gas turbines to energy audits.
In 2006, Siemens in Belgium also became a partner of the ‘Ener-
gy and environment awards’, which is supported by the Walloon
ministry for the environment and Walloon ministry for energy.
The EEAwards 2006 involved more than 11 awards, including
the Siemens Institutions Big Bang Award. This award was pre-
sented to the ‘Laboratoires de Chimie des Matériaux Inorga-
niques’ of the university of Liège (ULG) for its many advanced
research and development activities and for building prototypes
in connection with renewable energy sources.
Good citizen Siemens gives its commitment to various social issues in its
role as a good citizen.
Generation 21‘Generation 21’ is our program of initiatives to promote edu-
cation and research. In the future we aim to devise a coherent
and consistent strategy to unite our various initiatives.
Caring Hands ‘Caring Hands’ is the umbrella concept pooling together pro-
grams and projects undertaken by Siemens for charity. Within
this context, we continue to actively support the Corporate
Funding Program (CFP). Our company is one of the founding
members, together with other companies and non-govern-
mental organizations. This cooperation between the world of
business and NGOs gives us the means to put our vision into
practice in a flexible way as well as to generate innovative
ideas. By contributing in this way, we aim to promote sustain-
able socio-economic projects in the southern hemisphere,
together with the CFP. In one such innovative project – in the
south of Mali – we support Kafo Jiginew. This is a micro-fi-
nancing institution that has been providing low-cost loans to
people in the south of Mali since 1995, based on borrowings
from non-profitmaking organizations. The innovative nature
and efficiency of this concept have since hit the global spot-
light, when the Nobel Peace Prize was awarded to economist
Dr. Muhammad Yunus from Bangladesh – Dr. Yunus pioneered
the microcredit model.
The main recipients of Kafo Jiginew loans are poor farmers
who are not particularly welcomed by traditional banks. This
model offers them the chance to rise up from poverty, as it
breaks through the vicious circle of exploitation. The inhab-
itants stand surety for each other and are given sufficient
capital to invest in tools or equipment to produce their cotton
crops.
This is just one interesting example of the opportunities the
CFP gives us. The microfinancing model clearly shows how
dialog between parties with at times diverse outlooks can pro-
vide a breeding ground for innovative projects.
In 2006, we also supported the ‘Green of Hope’ golf tourna-
ment. The aim of this tournament is to inform and create
awareness for a wide public, prompting them to support the
Belgian Cystic Fibrosis Association. Nicolas Colsaerts – the
promising golfer we have been sponsoring for 6 years now
– had previously decided to give his backing to ‘Green of
Hope’.
duurzaam
Development of activities in 2006
Market development
The expected growth in the gross national product was adjusted upward in the
course of 2006, from 2.2 to 2.4%. Company investments increased and business
activity grew for the third year running. The utilization of production capacity also in-
creased, in turn increasing the need for investment. The financial situation of many
companies improved. Nevertheless, investments between 2002 and 2006 remained
7% lower than in the previous 5 years.
activity report 2006 Development of activities in 2006
18 19
Operators
Carrier Solutions continued along its chosen path of growth
and clinched a number of attractive deals. The entity focused
on innovative technologies, such as WiMAX, the digital house
and Fixed Mobile Convergence. It also continued to spear-
head activities in the fields of security, mobility and managed
services.
Belgacom International Carrier Services opted to develop the
first new-generation fiberoptic communication network in
mainland Europe, together with Siemens.
The entity developed the platform for Belgacom TV a few
years ago, for Belgacom’s national carrier services, which will
support 100,000 users by the end of 2006.
We are also a leading supplier for other carriers and cable
companies, such as Proximus, Mobistar and Base.
Carrier Services was also particularly active in its second
domestic market, i.e. West and Central Africa. The mobile
communications market in particular is enjoying growth in
this area. The current figure of 113 million African users is
expected to increase to 378 million by 2011. International
competition on the African continent is therefore growing as
a result.
Carrier Export succeeded in further strengthening its relation-
ship with leading mobile carriers such as Safaricom (Kenya),
Malitel (Mali), Sentel and Sonatel (Senegal), Telmob (Burkina
Faso) and MTN (Ivory Coast). Apart from network extensions
and introducing new applications, mobile data (GPRS) was
introduced to various carriers and in Kenya, the first UMTS
test call was made. A solution developed in Belgium, Virtual
Money Transfer (VMT), was successfully introduced in Mali.
VMT makes it possible to transfer extra calling credit via SMS
to other phone cards, e.g. parents transferring credit to their
children’s phone cards. Innovative solutions such as these
give carriers the opportunity to stand out from the crowd.
New contracts were also concluded with fixed network car-
riers to expand their fixed network or broadband offering.
In Niger, we digitized the DOMSAT satellite backbone and in
stalled a fiberoptic loop for Sonitel. A framework agreement
was signed with Gabon Telecom for various projects.
At the end of fiscal 2006, Nokia and Siemens announced their
intention at international level to merge their service provider
communication activities. Nokia Siemens Networks NV is a
leading global player with a huge presence and considerable
potential for synergies.
Permanent management of ASTRID service center
ASTRID is the dedicated telecommunication network for all
Belgian emergency and security services – local and federal
police, fire department, civil protection, customs, service 100,
national security, national defense and the coastguard.
In 2006, Siemens was selected by ASTRID to provide services
for permanent management of the ASTRID service center.
This involves contact with 20,000 users, offering them first-
and second-line support, 24/7.
We will make sure that qualified staff are always present at
the center. A plan was produced together with ASTRID to en-
sure that the employees involved would have the necessary
know-how in the field of telecommunication networks.
Communications>>> www.siemens.be/communications
20 21
activity report 2006 Development of activities in 2006
OTN
The success of OTN continued into 2006, with a large number
of new orders being received. The Open Transport Network
installed for Electrabel was extended to 300 nodes, making it
one of the largest OTN networks in the world.
In Asia, OTN was installed for the new deep-sea port in Shang-
hai, which will develop into the central navigation hub for
Asia in the long term. OTN connects the various operational
sites of the port to sites on the mainland and spans the gap of
the 35-km long bridge separating the two areas.
Global presence
OTN was also installed at the following places in 2006:
• Minatitlan Refinery in Mexico
• George Washington Bridge in the United States
• Beijing Metro Corporation in China
• Randstad Rail in the Netherlands
• Gentse tramlijnen
• Taksebt Water Pipeline in Algeria
Enterprise Networks
Enterprise Networks offers companies forward-looking com-
munication systems, solutions and services.
The market in which Enterprise Networks operates is un-
der-going rapid change. Demand for traditional telephone
exchanges is dwindling and customers are migrating toward
systems based on the internet protocol. What’s more, the
rapid strides forward in technology have created new require-
ments for companies.
To meet these various challenges, Enterprise Networks has
been going through a process of complete reorganization
since 2004. The entity increasingly acts as a solution and
services provider, focusing on activities such as sales of IP
soft switches. It also invests in new applications in the field of
mobility and security and offers a wealth of new services such
as managed services and hosted solutions.
Despite the turbulent times this entity is going through, it
managed to land a number of great orders. For instance, a
contract was concluded with a major financial institution for
completely renewing the telecommunication infrastructure in
550 of its Belgian branches. Enterprise Networks signed up
for carrying out the analysis, strategic consulting, configura-
tion and implementation of the new IP-based platform. It will
also be responsible for managed services – in other words,
overall operational management of the infrastructure. The
aim of this state-of-the-art communication tool is to make it
possible to offer a better service while considerably reducing
costs. This contract reinforced the division’s presence in the
banking sector. Contracts were also concluded with RTBF and
Standaard Uitgeverij for integrated IP communication plat-
forms. At the end of the fiscal, Enterprise Networks entered
into an agreement with the Federal Public Service Finance
to implement the MODA project. The aim is to develop a
mobile ICT solution enabling customs officers to carry out their
inspection activities remotely.
Positive results were also recorded in export activities.
For instance, a contract was concluded for renewing the
complete telecom infrastructure of the parliament in Ghana
and a project was launched with the Senegalese electric-
ity company Senelec. The Gabon ministry of finance opted
for Enterprise Networks’ call center solution. New distribu-
tors for enterprise communication systems were recruited in
Benin, Ivory Coast, Malawi, Saudi Arabia, Uganda, Yemen and
Zambia.
Communications>>> www.siemens.be/communications
Siemens Business Services2006 was an eventful year for Siemens Business Services
(SBS). A new strategic direction was charted. The compa-
ny will now specialize in two key areas: Operation Related
Services (IT outsourcing) and Solutions (SAP implementa-
tion projects and innovative solutions). SBS boasts conside-
rable strengths in both fields in Belgium and Luxembourg. As
before, the underlying aim of SBS is to provide businesses
with the best possible support in developing their core activi-
ties and improving their performance, by making innovative
use of information and communication technology.
The Product Related Services business unit was sold to Fujitsu
Computers with effect from April 1, 2006, where it forms the
heart of a new service department.
In 2006, Siemens Business Services managed to significantly
improve its position in the public sector.
Strong partner for governmentMajor contracts were awarded by:
•The Belgian Chancellery of the Prime Minister: the federal
government awarded SBS the “e-premier” contract, to de-
velop a file management system for the council of ministers
and consultative committee.
•Siemens Business Services has been chosen to map out a
new service-oriented architecture for Sigedis. We are respon-
sible for rolling out all applications involved in supporting
the core activities of this organization, i.e. collating and sto-
ring all work-related data to be used to calculate pensions.
•The Federal Public Service Finance: SBS has been awarded
an extensive datawarehousing and datamining project.
•European services, both for the Commission and Directo-
rates-General: SBS is responsible for customized architecture
for DG Sanco, ESP-DESIS framework, IDABC program.
These various orders have helped the entity underline its
strong position in major ICT reengineering projects.
SBS has also built up relationships based on trust with busi-
ness customers. For instance, we are responsible for the
operational management of data storage and archiving for
Mobistar, from our Data and Command Center in Huizingen.
Arcelor has opted for SBS to provide a rapid response to IT
problems. The long-term cooperation with Daikin continues
to flourish, focusing on further enhancing the ICT infrastruc-
ture.
We offer web hosting for 39 servers for Atlas Copco.
Growing interest for Data and Command Center Huizingen
In 2005, Siemens Business Services and Siemens Communi-
cations opened the Data and Command Center in Huizingen.
From this center we can offer private and public sector cus-
tomers a unique service, as a single-source supplier for the
combined management of IT and telecom infrastructures.
In 2006, Mobistar was one of a number of organizations op-
ting to make use of these services – for the next three years.
Siemens Business Services will be responsible for monitoring
the storage and archiving infrastructure, as well as for ma-
naging, processing and resolving incidents. Siemens will also
manage and implement all change requests relating to the
storage infrastructure and its expansion, from the Data and
Command Center.
>>> www.siemens.be/sbs
22 23
activity report 2006 Development of activities in 2006
Industry covers two divisions: Automation and Drives, and
Industrial Solutions and Services.
AUTOMATION AND DRIVES Automation and Drives offers
industrial customers a fully integratable package of high-
quality industrial automation products. The Totally Integrat-
ed Automation concept integrates solutions in the field of
automation, drives – motors and frequency controllers; in-
strumentation and analysis devices; low-voltage and installa-
tion equipment (including home automation).
Automation and Drives has set itself the target of being
present – either directly or indirectly – in every industrial plant
and is clearly number one in its field of activities. The division
recorded strong growth.
The acquisition at international level of Flender Holding
in 2005 – which sells gear systems, motor reducers and
couplings – led to effective cooperation activities in Belgium
in the last fiscal. Flender Belgium was integrated into the
Automation and Drives Operating Group on October 1, 2006.
INDUSTRIAL SOLUTIONS AND SERVICES specializes in
total industrial solutions for automation in the steel and paper
sector, traffic signaling, mobility management and environ-
mental systems, services to industry, industrial IT solutions
and the design and construction of switchgear.
The paper sector has to contend with high energy prices
on the one hand and a drop in paper prices on the other.
Demand for traditional automation projects went down.
We therefore directed our attention to innovative solutions
such as the treatment of water and waste water, alternative
energy sources and technology-based services. For instance,
we landed the Foxfire contract in the Netherlands, involving
a turnkey installation to convert paper waste into secondary
fuel. The installation was commissioned in July 2006.
In 2006, Siemens BeLux became the center of competence
for water supply systems and pumping stations. With the new
USFilter portfolio, Siemens Belgium plans to become a key
player in this field in the next few years. Industrial Solutions
and Services installed a membrane solution to produce high-
quality process water for Kaneka Belgium, a subsidiary of the
Japanese Kaneka Corporation.
A major contract was signed with Soenen, which operates in
the cardboard sector in East Flanders, to optimize its internal
logistics systems.
A three-year framework agreement was entered into with the
Flemish government for the supply of traffic controllers.
Retrofit at ALZ A particularly complex project from a technology point of
view was implemented for steel manufacturer ALZ in Genk,
involving the modernization of two roll grinding machines.
They were given a new lease of life by integrating SINUMERIK
840 Di digital controllers. This well-designed solution dove-
tailed perfectly with ALZ’s requirements, budget and future
planning.
De Persgroepfit for the future Publishers De Persgroep are building state-of-the-art prin-
ting facilities in Lokeren, equipped with the latest techno-
logy. Siemens was responsible for the energy supply based on
its Totally Integrated Power concept, home automation and
security.
IndustryThe Transportation division is active in the field of rolling
stock – railcars and trams. It is also a major contender in the
field of energy supply, air-conditioning and signaling for mass
transit systems.
Despite extremely fierce competition, the division was able
to strengthen its market position in 2006. Major orders were
received from De Lijn for 10 trams and from SNCB/NMBS for
electronic signaling stations.
A large-scale contract was concluded with Infrabel for the
supply, installation and parameterization of at least 4000
signaling units. This contract will run for the next five years.
A 20-year maintenance agreement is also linked to the
project.
Transportation>>> www.siemens.be/industrie>>> www.siemens.be/transport
Energy offers solutions and services for electricity generation,
energy transmission and energy distribution to industrial and
residential users.
After about ten years of scarce investment due to the liberali-
zation of the energy market, energy generation projects are
now again beginning to emerge. We have therefore been able
to conclude a number of major contracts – for instance, we
will be responsible for completely renovating control systems
at Electrabel’s W251 peaking gas turbine in Mol.
Activities in energy transmission and distribution have also
progressed according to expectations. The biggest orders
have been received from Elia, intermunicipal utilities, mana-
gers of the electricity distribution grids as well as the Associa-
tion Liégeoise d’Electricité.
In the export market, a major order was posted in the Demo-
cratic Republic of Congo, where we have concluded an inter-
national agreement to renovate the high voltage network.
Energy at Electrabel
We are developing a collective heating management solution
for apartment buildings for Electrabel. The solution involves
connecting our calorimeters to software that retrieves, vali-
dates, estimates, displays and distributes the data. The data
is sent to Electrabel via the internet, where invoices are then
directly generated for each user.
Electrabel is therefore able to make life a good deal easier for
caretakers, as the solution makes it possible to send extremely
accurate invoices directly to apartment residents. And it is also
attractive for managers of apartment buildings, as this op-
tion is far more advantageous than installing a meter in each
individual apartment.
The solution is currently installed in around 140 buildings, or
4000 apartments. Electrabel has concluded a service agree-
ment with us to be renewed each year for this project.
Energy>>> www.siemens.be/energie
24 25
activity report 2006 Development of activities in 2006
Building Technologies
Building Technologies works in partnership with its custom-
ers in the field of security, fire protection, comfort and energy
management, with the aim of making buildings safer and
more efficient for their entire life cycle.
Unique offering
The offering of Siemens Building Technologies covers:
• products and management systems for heating, ventilation
and air-conditioning (HVAC),
• fire detection, fire extinguishing and gas detection,
• electronic security solutions and intruder protection,
• video monitoring,
• identification and access control.
Our biggest asset is our broad spectrum of activities. We are
the only player on the market to offer all areas of expertise
from a single source, covering the A to Z of intelligent buil-
ding systems. Thanks to the Desigo building management
system, we are the only company able to offer our customers
these integrated solutions.
We are global market leader in the field of fire protection.
Our systems are generally recognized as the most powerful
on the market. Our range of Sinteso detectors was launched
in 2006, providing unparalleled performance and the only
detectors on the market with a guarantee against false alarms.
They have already been installed for Coca Cola. We have also
installed fire protection systems in the Brussels tunnels, in the
building of the Belgian Ministry for Internal Affairs and at Gos-
selies airport.
We offer a wealth of experience in the field of security. This
market has been enjoying strong growth for a few years now.
In the professional market, we are known for implementing
complex projects – total solutions integrated into all-encom-
passing business processes, such as IT or building manage-
ment. Intelligent security systems ensure an efficient alarm
organization to manage emergency situations and reduce
the operational costs involved in monitoring and increasing
corporate security. In the field of city surveillance, we have
landed a top contract in Antwerp’s diamond quarter. We have
also provided security solutions for Fortis and the Egmont
building in Brussels among others. SNCB/NMBS opted for
Siemens to provide security installations for 50 Belgian train
stations. All in all, we will install 1500 cameras and set up a
central control room where the images from the cameras will
be analyzed using intelligent video technology.
SBT was able to further boost its security portfolio with the
international acquisition of Bewator, a key player in the
field of access control. Once the integration was finalized in
Belgium, the employees of Fire & Security Products relocated
from Harelbeke to the offices of Bewator in Ghent. Direct use
could be made of synergies in the field of sales. Thanks to
Sintony® 60, we are now for the first time able to offer a
unique intruder alarm system for the residential market. The
system combines unparalleled performance with a unique
design.
Siemens Building Technologies is also global leader in comfort
systems, offering an impressive range of products and con-
trol systems for HVAC applications (Heating, Ventilation, Air-
Conditioning) and controlling lights, blinds, etc. We help our
customers to keep their costs as low as possible. By inves-
ting in modernizing their installations, they will benefit from
a return on investment in the long run in the form of more
efficient energy consumption. We have been able to achieve
this for Kinepolis in Bruges, Ostend and Kortrijk.
We are also providing fire protection, comfort and security
systems for the new De Persgroep building in Lokeren.
Over the next few years, Siemens Building Technologies will
continue to concentrate on city surveillance and integrated
solutions and services offering added value, such as energy
optimization.
Medical Solutions provides forward-looking total solutions
for the healthcare sector. Under the motto of ‘Proven out-
comes’, it aims for its customers to benefit from proven and
sustainable progress in their clinical, operational and financial
processes. Medical Solutions regularly develops major new
innovations, with the aim of enhancing the quality of health-
care for its customers while driving down costs for patients.
In Belgium and Luxembourg, we are market leader in
medical imaging for diagnosis and therapy, with solutions in
radiology, computed tomography, angiography and magnetic
resonance. We are also present in the field of medical and
administrative ICT, optimizing workflows and making hospi-
tals and doctors’ offices more efficient.
Market conditions in fiscal 2006 were difficult. Until June,
most Belgian hospitals had frozen their investments because
of the expected liberalization in magnetic resonance. A deci-
sion by the Minister for Health – relating to the approval of
40 extra machines for specific hospitals – has been pending
since mid-2005. It was not until the last quarter of the fiscal
that investment in other areas started an upward trend, i.e. in
traditional radiology, nuclear medicine and scanners.
Thanks to our technological innovations, we managed to
attract a number of sizeable orders. The brand new Somatom
Definition – the world’s first dual source computer-assist-
ed tomography system – was installed at the Notre Dame
clinic in Tournai and St Maarten in Duffel. The system was also
ordered by five other Belgian hospitals. This helped us to fur-
ther strengthen our market position in the field of scanners.
Medical Solutions has also been active in West and Central
Africa. Business development activities have resulted in a first
order for a scanner for the central hospital in Dakar, Senegal.
Next year, the entity expects to record further growth. On
the one hand, more orders are expected due to the liberaliza-
tion of magnetic resonance and on the other, our canvassing
activities in Africa are expected to bear fruit.
Medical Solutions
>>> www.siemens.be/buildingtechnologies
>>> www.siemens.be/medical
activity report 2006 Development of activities in 2006
26 27
Siemens Luxemburg
Siemens Luxembourg has been able to offer its customers
added value by making maximum use of local, regional and
international synergies.
Innovative in communication
Siemens in Luxembourg was particularly active in the area of
carrier networks. For instance, it received major orders from
the Entreprise des Postes et Télécommunications (national
post and telecommunications company), Luxembourg rail-
ways and the city of Luxembourg.
It also performed well in the field of new high-security tech-
nology. Alfa-Consult opted for Siemens within the scope of
its WiMAX activities, to implement hot spots on a wide scale.
Orders were also received to carry out a feasibility study and
implement a communication platform for the police and the
Galileo Network Management Facility.
The hosted services platform for enterprise communication
infrastructure and services was ordered by Commerzbank,
Luxembourg 2007, Arcelor-Mittal and other companies. We
have reached an agreement with DWS-Bank for a long-term
project. We have also continued our cooperation with loyal
customers such as SES and Banque Dexia-BIL.
Industrial progress
By implementing forward-looking systems and solutions,
Siemens Luxembourg has been able to offer its customers in
the energy market and in industry a means of staying ahead
of the field.
Strength in buildings systems
Despite growing competition in the building sector, Siemens
Building Technologies has managed to consolidate its posi-
tion in buildings systems on the Luxembourg market.
Projects include installing a fire extinguishing system and
central alarm management system for the Entreprise des
Postes et Télécommunications (national post and telecom-
munications company). Other major orders in the field of fire
protection were received from the Luxembourg penitentiary
center and Banque et Caisse d’Epargne de l’Etat (national bank
and savings bank). Orders were placed by LuxAirport and
Hitec Center Dexia for central buildings management.
Care and caring in the medical field
Despite the shortfall announced by the heath insurance funds,
Medical Solutions maintained its position as market leader.
The entity became the exclusive partner of the new Centre
de Réadaptation National (national rehabilitation center) for
supplying x-ray and echography systems and digitally archi-
ving x-ray images.
It also made special efforts to optimize customer relationships
with its existing customers over the last year.
Siemens VDO Automotive is active in the automotive retail
and after-sales market in over 80 countries. Its extensive port-
folio of products varies from navigation systems (hardware
and software), auto-multimedia and audio systems, compo-
nents for automotive, industrial and nautical applications, and
fleet and fuel management systems to original model-specific
replacement parts.
In 2006, Siemens VDO launched ‘Park Mate’, a parking
assistance system that helps find a suitable parking space and
parks the vehicle automatically. The system is expected to go
into mass production in 2008.
VDO Automotive
>>> www.siemens.lu
ADB is a recognized global leader in airport and heliport
ground lighting systems. For more than 55 years now, this
international player has been supplying cutting-edge techno-
logy and total solutions for airports. The company has there-
fore built up extensive knowledge of procedures relating to air
traffic movements and ground traffic management.
Among the orders received in 2006, ADB was awarded a
large-scale contract – working in a consortium with Montreal
in Spain – to fully equip Amilcar Cabral International Airport
in the Cape Verde Islands with a new lighting system. Project
handover is scheduled for September 2007.
ADB>>> www.adb-air.com
>>> www.siemensvdo.com
BSHBosch Siemens Home Appliances
Bosch Siemens Home Appliances (BSH) is a joint venture
between two major players in home appliances. BSH – number
2 in Belgium and number 3 in Europe – is one of the lead-
ing manufacturers of home appliances. Its range of products
includes washers and dryers, dishwashers, refrigerators and
freezers, ovens, small home appliances and vacuum cleaners.
The high quality products are sold all over the world under big
brand names such as Bosch, Siemens, Gaggenau and Neff.
>>> www.bsh-group.com
Fujitsu Siemens Fujitsu Siemens Computers
Fujitsu Siemens Computers came into being after the merger
of two global players - Fujitsu and Siemens - and is a clear
market leader in Europe.
In 2006, Fujitsu Siemens Computers acquired the Product Re-
lated Services business unit from Siemens Business Services.
PRS forms the heart of a new service department, called ITPS.
Fujitsu Siemens Computers is now equipped to follow the
trend in the IT products sector, offering hardware and related
services from a single source.
>>> www.fujitsu-siemens.be
krachtig
Topics & Trends
“We are pooling our innovative strength, with the focus on sustaina-
bility and better quality of life. Inherently forward looking and with a
keen eye for commercial reality.”
Francis Verheughe
Chairman of the Siemens Group Belgium - Luxembourg
The global population is continually increasing, while the birth
rate in industrial countries is slowing down. According to the
United Nations, approximately 3 billion people currently live
in cities throughout the world, making up 48% of the glo-
bal population. By 2030, this figure is expected to swell to 5
billion – a cool 60% of the global population.
As Kofi Annan, former Secretary-General of the United
Nations, said back in July 2000: the third millennium belongs
to the cities. Cities are the incubators of growth and drivers
of civilization. They are crossroads of ideas and a breeding
ground for intellect and innovation.
Growth of cities
activity report 2006
At the same time, major demographic changes are emerging.
The population in developing countries is ageing. Large fami-
lies have given way to small families who live for longer. In
other parts of the world, the population continues to grow.
Demographic change
30 31
Topics & Trends
Energy
33
activity report 2006 Topics & Trends
32
Siemens power plants provide for one fifth of the world’s
energy consumption.
Telling figures
The continuously expanding global population consumes an ever growing
chunk of our natural resources. In the future, gas, iron, copper, zinc and
even drinking water will become scarce commodities. Experts predict that
overall demand for energy will increase drastically in the course of this
century. It is estimated to rise by over 70% by 2020. Demand is growing
voraciously, especially in Asia. No-one knows today whether we will be able
to meet it. However, if we keep going at the present rate, we will exhaust
the oil reserves of OPEC countries in just 80 years.
In short, it is imperative not just that we save energy, but also that we pro-
duce new and ‘clean’ energy, to stop impacting on climate change. It is more
than likely that additional regulations will be imposed – more stringent than
the Kyoto protocol – to reduce greenhouse gases.
At any rate, environmental protection will certainly entail greater commit-
ment from us. Of the twenty most polluted cities in the world, sixteen can
be found in China. In the long term, the direct environmental damage will
cost China around 8 to 12% of its Gross National Product. The financial
markets will increasingly show greater interest in the performance and port-
folio of companies with respect to the environment.
Growing portfolio
Siemens works in anticipation of these trends. We are busy constructing natural gas plants
providing the highest output currently possible, i.e. 60%, with lower emissions. We also offer
core components for power plants based on biomass and ecological gas turbines. We further-
more provide highly effective solutions for transporting and distributing energy to industrial
and residential users.
We supply our products and services to electricity producers and industrial customers, some
of whom have their own energy generation facilities. We have seen strong growth in this
market.
In addition to the above, Siemens offers products and concepts to encourage rational ener-
gy consumption. ‘Demand Side Energy management’, for example, is a package of services
offered to industry, with the aim of continuously improving the energy efficiency of produc-
tion facilities and reducing the energy factor. We provide customers with IT systems for energy
management, energy metering and data warehousing.
With our “measure your energy efficiency” program, we can predict the energy and cost
savings that customers can generate by investing in new technology. By carrying out energy
audits, providing consulting and preparing a step-by-step plan, we enable customers to opti-
mize the energy output of their buildings and industrial plants, without jeopardizing comfort
and efficiency.
In 2006 we were certified as an official energy auditor, so we can support industrial customers
in their energy audit for the Flanders Audit Covenant. In this way, Siemens helps to meet the
Kyoto standards.
Another great example of how Siemens contributes in this respect can be seen in the coopera-
tion with Belgian bus builder Van Hool to develop an environmentally friendly and energy-
saving bus.
Other activities include home automation solutions to help consumers and companies actively
save energy. We implement alternative and renewable technologies for industrial customers,
with the aim of optimizing their consumption of raw materials and reducing greenhouse gas
emissions. Our buildings and systems have a positive impact on the environment, but also on
our customers’ business results, thanks to reduced operational costs.
activity report 2006
34
Energy in 2006
Topics & Trends
Environmentally friendly and energy-saving buses
Van Hool developed a bus that is powered by fuel cells in
which hydrogen gas is converted into electricity. The only
residual product is pure water. The energy released during
braking is also buffered highly efficiently in batteries.
Siemens was responsible for supplying the electrical drives
and the energy management system. The result is an
extremely environmentally friendly and energy-saving
vehicle.
The need for mobility and for environmental protection do
not always go hand in hand. By pooling their technologi-
cal expertise, Van Hool and Siemens were together able to
provide a solution to this growing problem.
Certified as an energy auditorIn May 2006, Siemens was officially certified as an energy
auditor for the Flanders Audit Covenant. This is an agreement
between companies and the Flemish government to encou-
rage midsized companies that are intensive consumers of
energy to analyze and rationalize their energy consumption.
In this way they will be able to meet the stringent Kyoto stan-
dards. Signing the Audit Covenant is not obligatory. In return
for producing an energy plan and implementing the appro-
priate measures, companies receive an energy tax rebate.
We were prompted to apply for certification after our con-
tract with the Alro group, involving the preparation of an
energy plan for their three sites in accordance with the Audit
Covenant for Flanders. Alro is active in the automotive sector
for painting and powder-painting components for cars and
trucks.
An energy plan was also prepared for PBI Fruit Juice Company
(Looza Tropicana) under the Audit Covenant. Other referen-
ces in the field of energy management include Felix-Schoe-
ller (photographic and decorative paper), Technocell (deco-
rative paper), Koehler Décor (decorative paper), Alpro (soya
products), Mondi Packaging (packaging paper) and Smurfit
Kappa (cardboard).
Innovative project for Foxfire in the Netherlands
In 2006, an installation was commissioned for Foxfire in
Groningen in the Netherlands that recycles paper waste into
a secondary fuel. Uses for this fuel include selling it to the
cement industry.
Siemens Belgium not only supplied the technology for this
project, but was also responsible for project management,
including purchasing all machines. If any faults occur, the
installation can be monitored and adjusted remotely.
Foxfire plans to sell the technology throughout Europe, with
Siemens Belgium as its partner for the technical equipment.
Given the trend toward green energy, these plans have a very
good chance of succeeding...
Renovation of high-voltage network in the CongoLast year we entered into an international agreement to reno-
vate the high-voltage network in the Democratic Republic of
Congo. The project goes under the name of PMURR 1 (mul-
tisectoral rehabilitation and reconstruction program) – it is
financed by the World Bank.
We are responsible for supplying power cutout switches, pro-
tective relays and communications systems for high-voltage
lines, monitoring their installation and providing support
for commissioning at the Inga, Kwilu, Kimwenza, Lingwala,
Liminga and Zongo stations. Commissioning will take place
between mid-2007 and mid-2008.
Water
First order for Siemens Water Technology in Belgium
Chemicals giant Kaneka Belgium, a subsidiary of the Japa-
nese Kaneka Corporation, placed an order with us for instal-
ling membrane technology to purify canal water, in turn pro-
ducing high-quality process water. This process water is then
used in the chemical processes involved in the production of
plastics. Kaneka produces impact modifiers for PVC, polyolefin
rubber and basic polymer for elastic sealants and adhesives.
The company previously used well water to produce process
and demineralized water. The purified water obtained from
this generated a considerable amount of waste water. Instead
of pumping up even more well water – in turn drawing further
on the groundwater table – and increasing the capacity of the
purification system, Kaneka opted for the Siemens solution.
The company now uses canal water that is passed through a
microfiltration and reverse osmosis system, at a rate of 45 m3
per hour. The new system guarantees a constant production
of process water with a steady quality, even if the raw water
has high peaks or contains a lot of solid substances.
Al Hunayy handover
In 2003, we received a huge order from Saudi Arabia. The aim
of the project was to equip the wells of Al Hunayy with electri-
cal and automated systems, a water purification plant and a
twin transmission pipeline to the capital city of Riyadh. This
project was completed and handed over in 2006.
As a holder of 1500 patents in water technology, Siemens is the
world’s most innovative company in this field.
Telling figuresJust 0.03% of water on our planet is suitable for consumption. As the population of the world
continues to grow, a third will face a shortage of drinking water by 2025. This figure may
even rise to 40% of the world’s population by 2050.
As consumers, we will therefore have to be more careful with how we use water. And indus-
try will also have to handle water differently. The cost of water will unquestionably go up in
the next few years; the competitiveness of our industry will depend on it in the future, just
as it does on oil products now.
Living portfolioSiemens is able to offer its customers a comprehensive portfolio covering the entire water
cycle, from treating unpurified water to purifying waste water.
Furthermore, in 2006, Siemens Belgium-Luxembourg was appointed as a center of com-
petence in the field of water supply systems, more specifically water transfer systems and
pumping stations. We were internationally selected as one of the five countries to develop a
strategy in this market. We are therefore taking a significant step toward achieving our ambi-
tion of playing an important role in this field.
We were appointed as a center of competence thanks to our decades of experience of wor-
king with water transfer systems in North Africa and the Middle East. Siemens BeLux has
built up a leading position in this field. In concrete terms, we offer considerable expertise in
turnkey installations comprising more than one pumping station, water treatment installa-
tions, a mechanical part, operating and monitoring systems and fully automated controls for
complex transfer systems.
We also offer a comprehensive range of products and services. In 2004, Siemens acquired
USFilter at international level, the North American market leader in services and products for
water and waste water treatment.
Based on our wide-ranging portfolio combined with our extensive know-how, we aim to
further expand our activities in water technology over the next few years.
37
activity report 2006 Topics & Trends
36
2006: A first in water technology
Security
Secure freight corridors at ports
In 2006, Siemens entered into cooperation with Hesse-Noord
Natie, a subsidiary of leading port operator PSA, based in Sin-
gapore. The aim is to secure containers that are processed via
PSA terminals in the port of Antwerp. The aim of the coopera-
tion is to create secure freight corridors between major ports,
based on the CommerceGuard container protection solution.
This solution, based on RFID, enables checks to be made on
the opening of containers during transportation and provides
access to status data for importers, shippers, logistics ser-
vice-providers and government officials around the world. It
is currently being developed by CommerceGuard AB, a joint
venture between Siemens, General Electric and Mitsubishi.
This project will make Antwerp the very first European port in
the global network of secure freight corridors. The system will
facilitate and speed up the transit of freight traffic in ports,
creating RFID highways around the world between the main
ports and terminals.
Stations intelligently protected
Following a tragic incident early in 2006, the SNCB/NMBS
decided to expedite its investment program for safety and
security.
In an initial phase, Siemens will equip 50 main train stations
with intelligent monitoring cameras. These cameras will auto-
matically generate alarms in the central control room, based
on image analysis.
Siemens is responsible for supplying and commissioning
around 1500 security cameras. We will equip the control
room with a Desigo management system integrating all
security technologies and a Barco videowall on which to
project the images.
Reinforcing the Belgian Federal Agen-cy for the Safety of the Food Chain (FAVV)
The FAVV is in charge of food safety throughout the entire
food chain. It carries out inspections of foodstuffs and raw
materials and is responsible for producing traceability and
identification systems. The FAVV needed a new IT system to
manage, dispatch and implement all analyses. This system
comprises a Laboratory Information Management System for
the FAVV’s five own labs as well as an inspection LabNet appli-
cation. This enables the FAVV to manage all analyses carried
out internally and outsourced externally. Apart from the 150
users within the FAVV, 20 or so external labs will also be able
to enter and retrieve data via the internet.
After a European invitation to tender, the contract was awar-
ded to the specialist Siemens department with its solution
based on Simatic IT Unilab.
Royal premises protected
At the end of 2005, Siemens was contracted to modernize
the security infrastructure of the royal premises. The project
involves constructing a secure perimeter fence covering a
number of kilometers together with video monitoring and a
management system. The contract will run for ten years.
City surveillance in the diamond quarter
Various Siemens entities joined forces in 2006 to provide the
diamond quarter in Antwerp with an integrated monitoring
system.
This prestigious project is a major calling card in the growing
market for city surveillance.
One in four commercial buildings in Europe is fitted with Siemens fire
protection systems.
Telling figuresNowadays, around three billion people, or 48% of the world’s population, live in large cities.
One in three lives in a slum – and in developing areas this figure is considerably higher. The
growing social divide is a breeding ground for social unrest. And as cities grow, the situation
will worsen. So guaranteeing public safety is a top priority.
But safety and security are not just important in the context of the growth of cities. There
is a prevailing feeling of unease not helped by the constant reporting in the media of crises
and problems.
The speed of change also entails a feeling of insecurity. New forms of electronic criminality,
targeting data and information, represent a significant threat for the global economy. There
is a growing need for protection and security.
Portfolio aimed at security and comfortThe growing need for protection could potentially lead to restrictive measures, for instance
rules and regulations that infringe on our privacy, curb our options or scope to maneuver and
significantly slow down our speed of innovation. Siemens’ technologies increase the security
of goods, data and capital. But that’s not all. Our solutions ensure security, without impin-
ging on our basic freedoms. So security becomes an asset, not a burden.
We provide networks and cutting-edge smartcard technologies offering access with the
utmost speed, ease and security. We develop intelligent and integrated systems protect-
ing buildings, infrastructures and surrounding areas. We offer national and non-national
operators solutions to protect their networks against hackers, to prevent important data from
being stolen or the network from being sabotaged. We offer industrial customers forward-
looking automation solutions based on the ‘Safety Integrated’ concept.
39
Security in 2006
activity report 2006 Topics & Trends
38
activity report 2006
Ultra safe and autonomous traveling cranes at Arcelor Ghent
Safety is a number one priority for Arcelor. Especially in the
manipulation of heavy steel rolls, which play a major role in
the supply chain in the company’s cold rolling department.
Steel rolls are manipulated using powerful traveling cranes.
One steel roll easily weighs 30 tons, with a temperature of
500°C and razor sharp edges. A slight error could lead to
serious consequences. The challenge was to convert a manu-
ally operated crane dating back to the 1970s into an ultra safe
and fully automatic model. Arcelor opted for the Siemens
solution of introducing PROFINET as industrial communica-
tion technology and safety-relevant programmable logic
controllers (PLC). The deciding factor in favor of Siemens was
the option to integrate various technological disciplines such
as wireless networks and safety systems.
This means that Arcelor can benefit from considerable cost
savings, enormous technical flexibility, excellent availability
of the system and maximum safety.
Greater fire protection in Brusselstunnels
Each day, more than 50,000 vehicles drive through some of
the Brussels tunnels. The total length of the tunnels around
the Brussels inner ring comes to at least 21 kilometers –
reason enough for the Brussels regional government to
invest in modernizing the fire protection systems in the
tunnels around the inner ring.
An autonomous fire detection system is installed in each tun-
nel. Burning vehicles will be detected using thermal detec-
tion via fiberoptic cables. All tunnels will be monitored from a
central control room, which is linked to the ventilation system
and security cameras, creating an integrated security system
that will enable the fire department to intervene more quickly
and efficiently.
Anti-fraud system
Siemens has signed a major contract with the Federal Public
Service Finance. We will be implementing the first two phases
of the extensive datawarehousing and datamining project,
with the aim of detecting fraud and analyzing risk. By gather-
ing data from various sources and databases in a central data-
warehouse, officials can compare, check and consolidate data
on aspects relating to tax. This will make the Belgian Federal
Public Service Finance one of the most advanced government
services in Europe.
Hainault protected against flooding
Flooding is becoming an increasingly familiar phenomenon,
what with global warming, our assorted sewer systems and
the continuing spread of asphalt. Siemens has developed
systems that automatically warn people when a specific wa-
ter level has been reached.
In 2006, the province of Hainault opted for Siemens’ inte-
grated automatic protection and alarm solution for floo-
ding. The system detects a potential risk of high water and/or
flooding via sensors that are installed in the province’s water
courses and are connected to a central system. Based on the
measurements recorded, the system determines whether
there is a risk of flooding. If such a risk is detected, two alarm
systems are activated:
- a protected, closed system to warn the civil defense, fire
department and municipal council;
- a public system that sends a warning via SMS to citizens
within the area in question who have already previously
registered on the authority’s portal.
40
Security in 2006
Topics & Trends
Healthcare
Sophisticated computer-assisted tomography system At the end of 2005, Siemens unveiled the world’s most
sophisticated computer-assisted tomography system. This
first dual source CT heralded a new age in medical imaging
– Siemens has stretched the technical and clinical limits of
tomography with this innovation, the Somatom Definition.
The system enables users to scan any beating heart at any
heart rate, providing complete cardiac details with up to 50
percent less exposure to radiation than with traditional CT
scans.
The Somatom Definition will be able to scan patients with
heart problems without requiring the use of beta blockers,
which patients used to be given to slow down their heart
rates. The system can be used to make faster and earlier
diagnoses for patients who need acute care. The CT is there-
fore ideal for one-stop diagnoses, for example if patients have
had a suspected stroke or are in acute pain.
Leading healthcare institutions around the world responded
with alacrity to the launch of the Somatom Definition, with
orders coming in from the university of Erlangen, the Mayo
Clinic (Rochester, Minnesota), the Cleveland Clinic Founda-
tion (Ohio) and the medical center of the university of New
York among others. The first order for the system in Belgium
was received from the Notre Dame clinic in Tournai and
St Maarten in Duffel. The Somatom Definition is being
commissioned in five other Belgian hospitals at the end of
2006 and beginning of 2007.
Home automation: intelligent help at homeSiemens’ smart home automation solutions can offer comfort
and security to people with physical disabilities or the elderly, so
that they can continue to live independently for longer.
Lighting, blinds and shutters, heating, air-conditioning, access
control, security and management of home appliances – all
these can be operated and managed with just one integrated
electronic system.
For healthy people, home automation means greater ease and
comfort. For people with physical disabilities or the elderly, it
can be the solution allowing them to stay living at home for
longer.
Our home automation solutions are for example available with
voice recognition. Users can give a voice command to open or
close blinds and doors, call lifts or switch on lights. In service
flats for the elderly, movement detectors can be installed to
turn a light on if residents get out of bed at night. Or a central
button can be fitted, to turn off all electrical devices.
It is even possible to install detectors that route a signal through
to the home care team or to the resident’s children if no move-
ment has been detected in the flat for some time.
Bedside terminalsIn the course of 2006, Siemens installed the first bedside ter-
minals at the regional hospital of Heilig Hart Tienen in the
newly reopened and revamped maternity ward. These termi-
nals make patients’ stay in hospital a far more pleasant expe-
rience. They can use these mobile terminals to not just watch
digital TV or surf the net – they can connect up their own
games or keep an eye on their newborn baby in neonatal care,
via a webcam.
The terminals also make it easier for patients to stay in contact
with the outside world, as they can use them to send e-mails
and make VoIP calls.
Siemens is one of the largest suppliers to the healthcare sector world-
wide. Our innovations improve workflow and increase efficiency in
hospitals and doctors’ offices.
Telling figuresThe population in industrialized countries is getting older. In 2050, the number of people
over the age of 60 will be equal to the number of people under 15 for the first time in his-
tory.
So it stands to reason that the number of illnesses relating to old age is increasing. Health-
care costs per capita are going up, while the number of young people – who have to finance
these healthcare costs as well as pensions – is going down.
In developing countries, infectious diseases have huge consequences. With increasing glo-
balization, growing trade, greater mobility, climate change and resistance to medicines, the
risks for the entire population of the world are also increasing.
Healthy portfolioActivity in the healthcare sector in the western and southern hemispheres will become in-
creasingly intense. This will ramp up pressure on costs, while calling for a more targeted
focus on efficiency. The healthcare sector can only remain affordable with state-of-the-art
technology ensuring maximum speed and precision of functionality.
At the same time, extensive databases will increase in importance, enabling structured data
storage and rapid diagnosis. Siemens is adopting a two-pronged policy, offering advanced
medical solutions while developing integrated medical ICT and networked medical and ad-
ministrative processes. This will enable us to significantly improve the quality, efficiency and
productivity of healthcare, while driving down costs.
43
activity report 2006 Topics & Trends
42
Taking the temperature of 2006
Mobility
Infrabel places huge order for safer rail network
Infrabel – the body that manages the Belgian rail network infra-
structure – wants to further systematically enhance the safety
of the Belgian rail network over the next few years. At the same
time, it intends to comply with the requirements for European
freight transportation throughout its main routes. In 2006,
Siemens clearly showed its support by helping Infrabel imple-
ment these dual objectives. The Belgian rail network includes a
total of 13,000 signals. Over the next four years, we will equip
the first 4000 signals with ETCS equipment. The European Train
Control System ensures that trains automatically come to a stop
before a red light, thus reducing the chance of human error to
zero.
We will also equip the Belgian section of the European Corridor
C – the Antwerp/Basel-Lyons line – with ETCS. Uniform European
train protection in this way will not only ensure safety but also
guarantee the interoperability of freight transportation between
various countries. This means that non-Belgian transport com-
panies will be able to run their own locomotives on the Belgian
network.
Infrabel awarded us the contract for supplying, configuring,
installing and maintaining the ETCS system.
Easing life the mobile way In March, the Belgian interdisciplinary institute for broadband
technology launched a trial to ascertain the level of accept-
ance of mobile television in Belgium, using Siemens’ DVB-H
test system (Digital Video Broadcast Handheld). The system
transmits live television and radio programs, as well as spe-
cially prepared video streams. Analysts predict that around
125 million people will be watching mobile TV by 2010.
Siemens has already recorded promising test results in Ger-
many and the Czech Republic.
De Lijn takes a leap forward in technology
De Lijn has recorded growing success in East Flanders. The
number of trams running along the streets is on the up and up.
So it inevitably became necessary to upgrade the traction net-
work. De Lijn also took the opportunity to equip the traction net-
work with Siemens’ Open Transport Network (OTN).
This fiberoptic network will be installed for ultra-fast data com-
munication between the traction stations and central dispat-
ching. But the system also offers other advantages, such as
camera surveillance with recording for specific substations or
locations. Forty-two cameras that record local images will transmit
video data via the OTN to the dispatching room. Various Siemens
departments joined forces to implement this project. And De Lijn
in East Flanders has clearly leapt forward as a result. It is currently
the only tram and bus transportation company in Belgium with
an extensive fiberoptic backbone.
Mobility improved for Federal Public Service Finance
At the end of the fiscal year, we concluded an agreement with
the Federal Public Service Finance to implement the MODA
project. The aim is to develop and implement a new ICT solution
which can be used to optimize inspection processes via mobile
communication. Around 600 customs officers – equipped with a
mobile office and barcode reader – will be able to communicate
remotely with the databases and central applications. This means
that they will have access to up-to-date information in real time
while they are carrying out their inspections. Siemens will be
responsible for an automatic tracking system via GPS, secure
access to the systems, applications for planning and reporting as
well as the necessary hardware in the vehicles.
The system is scheduled to be tested in February 2007.
Siemens technology can be found in one in every two cars around the
world.
Telling figures
With the rise in the world’s population and growing globalization, road traffic is steadily increasing
by 2 to 3% a year. And this means that the 500 million vehicles currently on the roads will turn
into 2.5 billion by 2030.
Air traffic is growing at an even faster rate, by 6%. The volume of global freight transportation is
also rising rapidly.
And in the end, this makes us less and less mobile – our cities are grinding to a standstill. The only
way of relieving the situation is by integrating various ecologically sound transportation systems,
for individuals, groups of individuals and freight.
Growing portfolio
Siemens has considerable expertise in all areas of mobility. For instance, we are involved in opti-
mizing existing means of transport. We develop advanced rail systems – after all, mass transit is
a safe and cost-effective way of traveling short and long distances, while taking the burden off
road traffic as well as the environment. Our portfolio covers signaling systems for mass transit,
as well as electrification systems, rolling stock, air-conditioning and related services. Our logistics
solutions ensure the flexible and cost-effective transportation of goods throughout the world.
We provide a diversity of solutions for better road transportation, such as traffic signaling, parking
and traffic telematics.
Siemens has also spread its attention to port and airport traffic as well as inland shipping, both in
terms of environmental protection and traffic solutions.
We also develop virtual mobility systems, such as video conferencing systems and OpenScape
software for virtual teamwork. These types of solutions make us virtually mobile – thanks to
real-time communication and shared access to the same information – and they also reduce the
amount we need to travel.
45
activity report 2006 Topics & Trends
44
Dynamic 2006
activity report 2006
Front Parking 3 at Zaventem equipped with
dynamic parking lot guidance system
Interparking, the airport parking lot operator at Zaventem,
ordered a PIMSpark solution for Front Parking 3, which has 2400
spaces. As soon as drivers enter the parking lot, this solution
guides them to the nearest free parking space.
Parking lot operators such as Interparking want to offer pas-
sengers a quality parking service and drivers want to be guided
toward a space as quickly and efficiently as possible. It is very
important to the operator for vehicles to drive around the parking
lots as little as possible so that exhaust gas emissions are kept to
a minimum. Too many unused spaces and poorly parked vehicles
prevent parking lots from being managed optimally. With PIM-
Spark, we are able to meet these requirements.
Sending calling credit to family in rural areas
For many years now, Siemens has been the preferred partner of
Malitel, market leader in mobile communication in Mali. To stand
out in this highly competitive field, the operator has invested in
various innovative services and last year was no exception. One
such service is Virtual Money Transfer, specially developed by
Siemens Belgium for African operators. It enables subscribers to
give calling credit to other users simply by sending an SMS mes-
sage. In this way, people working in the city can continue to help
their family in rural areas, where it is very difficult to get hold of
phone cards.
Park Mate
Last fiscal, Siemens VDO launched Park Mate, a parking assis-
tance system that not only finds somewhere suitable to park,
but also steers the car into the space. The system uses ultrasonic
sensors integrated into the sides of the car. It has generated
considerable interest from drivers and car manufacturers alike.
The system is expected to be in mass production in 2008.
Park Mate is just one element of pro.pilot, an ergonomic package
of driver assistance systems. A night vision system, a system that
warns drivers if they are about to unintentionally leave a lane and
an automated system for driving in congested traffic are ready
for mass production.
46
Dynamic 2006
Topics & Trends
The Siemens group Belgium-Luxembourg
Siemens nv
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Board of DirectorsChief Executive Officer: Francis Verheughe
Managing Director: Kathleen Wantz-O’Rourke
Directors:
Hendrik De Nolf
Manfred Dönz
Jean-Pierre Laurent Josi
Jacques Saverys
Nicolas Schaeffer
Executive CommitteeChief Executive Officer: Francis Verheughe
Chief Financial Officer: Kathleen Wantz-O’Rourke
Executive Vice President: Roger Van Steenbergen
“Inauguration of new head office in Anderlecht, May 10, 2006”