Siemens Bank - Annual report 2011... · 2020. 8. 1. · Siemens Bank GmbH Annual Report Editorial Dear Reader, Welcome to the 1st edition of the Siemens Bank Annual Report. We are

Financial Services

Annual Reportfor the fiscal year ended September 30 2011

Siemens Bank GmbH

Siemens Bank GmbH

Annual Report Editorial

Dear Reader

Welcome to the 1st edition of the Siemens Bank Annual Report We are glad to state that the initial months of our bank-ing activities were everything we expected ndash eventful exciting and challenging They document that our decision to apply for the banking license in 2010 was well founded and we can already see the valuable benefits of providing banking solutions as part of Siemens Financial Serviceslsquo overall business mix

In a difficult global economic environment financial solutions have become increasingly important for Siemens and Siemenslsquo customers Our goal is to support the growth of Siemensrsquo four operating sectors ndash Energy Healthcare Industry and Infrastructure amp Cities ndash by providing a comprehensive range of financial solutions With Siemens Bank being able to provide banking solutions such as project financings corporate loans guarantees and other forms of debt financing from Germany we have clearly strengthened our capabilities in the entire spectrum of sales financing In addition to corporate customers public authorities and project companies have also become important By establishing Siemens Bank we were also able to provide deposit banking services to Siemensrsquo Group Companies and select Institutional third parties as well as services related to risk management and risk controlling for both internal and external customers

Based on a high demand from customers we were able to realize new business opportunities quickly For example Siemens Bank and Siemens Sector Energy played a leading role in the creation of the first project-financed offshore wind park in Germany ndash bdquoMeerwindldquo which recently received the European Offshore Wind Deal of the Year Award presented by Euromoney Project Finance Magazine Our customer for this financing is the project developer WindMW GmbH

In mid-October the Energy Sector helped by Siemens Bank financing constructed and established the ldquoLes Meesrdquo solar farm in the south of France The project included the installation of a total of six turnkey photovoltaic (PV) power plants including long-term operation and maintenance agreements ldquoLes Meesrdquo will generate a combined peak output of 31 megawatts (MWp) and power approximately 12000 French households with clean electricity Our main customer for this financing is the project developer Eco Delta SA

With an accelerated pace we also put in place many new structures and processes to drive and govern our bank-ing business for the long term As an example we recently completed the notification process with Bundesanstalt fuumlr Finanzdienstleistungsaufsicht (BaFin) in Germany and Financial Services Authority (FSA) of the UK to set up a UK Branch The UK branch based in London commenced operations in April 2012 and supports both credit and guarantee business focusing mainly on large Siemens-related transactions particularly those that require close interaction with the international banking community

The developments over the past 12 months as well as current indications give us a good insight into the intermediate future Corporate and project finance will remain our key activity and Siemens Bank with its industrial heritage is well placed to realize current and future opportunities in support of Siemensrsquo growth ambitions

Siemens Bank GmbH

Managing Board

9

12

29

30

34

36

38

55

Siemens Bank GmbH

Annual Report

Contents

Management report

1 Business performance overview

2 Risk report

3 Other information

4 Outlook

Annual financial statements

Income statement

Balance sheet

Notes

Audit Opinion

This version of the annual financial statements and the management report of Siemens Bank GmbH Munich has been prepared for the convenience of English-speaking readers and is a translation of the German original For purposes of interpretation the German text shall be authoritative and final

7

Management reportof Siemens Bank GmbH Munich for the period October 1 2010 to September 30 2011

8 9

Siemens Bank GmbH

Management report Management reportof Siemens Bank GmbH Munich for the period October 1 2010 to September 30 2011


11 Business activities of Siemens Bank GmbH

Siemens Bank GmbH Munich (hereinafter Siemens Bank) was established during the 2010 fiscal year and com-menced banking operations on December 21 2010 Siemens AG Berlin and Munich (hereinafter Siemens AG) established Siemens Bank with itself as the sole share-holder in order to broaden the range of sales financing products in its cross-sector Financial Services business increase flexibility in group finance and optimize its risk management

There are three pillars to the Siemens Bank business model

Lending and guarantee business This is the core business of Siemens Bank focusing on the provision of medium- to long-term financing for corporate clients project companies and public-sector borrowers Given Siemens AGrsquos corporate market strategy the industrial segments of particular importance for Siemens Bank are power generation and distribution transport and infrastructure healthcare and manufacturing The product portfolio currently comprises in particular capital investment loans promissory note loans project finance and revolving loan facilities Siemens Bank operates in both the primary market and the secondary market for loans

Deposit and treasury business The deposit business focuses on the receipt and investment of overnight money and time deposits from companies in the Siemens Group and selected third-party institutions The treasury business encompasses both finance within the Group and asset liability management Asset liability management ensures that the credit business is funded by equity and other deposits that are mostly matched in terms of maturity and currency sometimes however on a short-term basis involving the Siemens Bank in lim-ited market and liquidity risk

Fee business Key resources for managing financial risk and processing financial transactions in the Siemens Group have been brought together within Siemens Bank These resources not only support the companyrsquos own banking operations they are also offered to Siemens AG its subsidiaries and selected third parties

Siemens Bank does not undertake retail banking or main-tain a trading book

12 Economic environment

In its lending and guarantee business Siemens Bank offers its products primarily to customers in Europe and Asia In view of this strategic geographical focus the economic environment in these regions has a huge impact on the business performance of Siemens Bank

In the 2011 fiscal year economic trends in Europe were influenced by two key factors On the one hand economic growth was returning to major markets however on the other hand high levels of sovereign debt in Europe were causing increasing uncertainty

Although according to data from the German Federal Ministry of Trade and Commerce there was a rise of 04 in the seasonally adjusted and inflation-adjusted figure for euro zone gross domestic product during the first three quarters of the 2011 calendar year compared with the equivalent period in 2010 this key indicator neverthe-less suggests that there has been a slowdown in economic growth particularly in the last few months The main factor behind this slowdown has been market uncertainty caused by the high levels of government debt in Europe but compounded by the budget consolidation measures and cuts by euro zone governments which have also dampened economic growth As a result industry in the euro zone has been seeing a drop in new orders over a number of months now This trend has been more notice-able in the countries of southern Europe directly affected by the debt crisis

Growth in the global economy also slackened during the course of the summer of 2011 In addition to causes that were purely cyclical ndash weaker growth following a period of strong economic growth and the impact from pent-up

10 11

Siemens Bank GmbH

Management report

demand in the prior year ndash there were also other eco-nomic factors behind this trend further moves toward consolidation in national budgets and uncertainty result-ing from rising government debt in the euro zone and in the United States However performance in the emerging markets remains a linchpin of global growth

These trends and fears caused by the substantial finan-cial exposure of banks that have invested heavily in gov-ernment bonds issued by critical debtor countries also led to a rise in uncertainty on the interbank market in the last few months of the fiscal year reflected for example in wider credit spreads for banks and an increase in deposits at the European Central Bank

At the same time legislators have been redrafting key ele-ments of the regulatory framework for the banking indus-try driven by the experience of the most recent financial crisis Based on the adoption of the requirements under the Basel III Accord and the decisions made at the G20 summit held in Cannes in November 2011 European and national regulatory frameworks are being modified and tightened with the objective of ensuring that there are stricter capital requirements to cover risk greater liquidity in the banking sector and thereby greater resilience in the sector to withstand the effects of crises

13 Business performance

Key features of the business performance of Siemens Bank in its very first fiscal year were the development of the Bankrsquos portfolio and the investment in the commence-ment of banking operations

Growth in assets and liabilities on the balance sheet

Since the start of banking operations in December 2010 there has been a steady increase in Siemens Bankrsquos loan-book volume The fourth quarter saw a further accelera-tion in this growth as a range of deals acquired since the start of banking operations became balance-sheet effec-tive Siemens Bank has not invested in government bonds or credit derivatives

Growth in loans and advances to customers

(face value euro million)

In the fourth quarter there was a sharp rise in the volume of deposits by affiliated companies particularly by the shareholder Siemens Bank invested a very high pro-portion of these deposits with other banks ndash including Deutsche Bundesbank the German central bank ndash with the particular objective of achieving both positive returns and the highest possible level of security

Q1 2011 Q2 2011 Q3 2011 Q4 2011

Q1 2011 Q2 2011 Q3 2011 Q4 2011

1000900800700600500400300200100

0

500045004000350030002500200015001000

5000

Growth in loans and advances to banks (face value euro million)

The key features of the liquidity position at Siemens Bank are a high volume of short-term assets and an excess of short-term assets over short-term liabilities Currently Siemens Bank is funded exclusively by deposits from Siemens AG and its subsidiaries

Earnings

The earnings situation to a large degree reflects the bank-ing operations start-up at the beginning of the 2011 fiscal year and the significant growth in the lending portfolio during the last quarter of the fiscal year Despite the fact that the growth in the lending portfolio only took place late in the fiscal year and even though it was the first year of banking operations Siemens Bank was able to generate a net operating income for the year

In the 2010 fiscal year only expenses incurred in connec-tion with establishing the company and applying for the banking license had been reported so any comparison of the earnings situation with the prior year is meaningless

2011

Net interest income 73

Net fee an commission income 137

General administration expenses -197

Other income and expense net 03

Net operation income before allowances for losses on loans and advances

16

Allowances for losses on loans an advances -11

Net operation income 05

Components of Siemens Bank income (euro million)

Net interest income at Siemens Bank arises from the spread between interest income on loans and investments on one side and funding-related interest expense on the other Siemens Bankrsquos net interest income for the 2011 fiscal year was still relatively low compared to the Bankrsquos lending portfolio because the bulk of the lending portfolio was only built up at the end of the fiscal year and most of the liquidity derived from deposits was invested in money markets on a short-term basis

A significant component of Siemens Bank income in 2011 was net fee and commission income Siemens Bank earns fee and commission income primarily by providing risk management and processing services for Siemens AG and its subsidiaries The services were provided over the course of the entire fiscal year The costs incurred in pro-viding the services are reported under general administra-tion expenses

Approximately 60 of general administration expenses at Siemens Bank are attributable to personnel expenses Since the beginning of the fiscal year Siemens Bank has had employees responsible for carrying out its own banking operations and also for providing risk manage-ment and processing services The other administrative expenses are largely accounted for by the purchase of ser-vices from Siemens AG and its subsidiaries and from third parties This purchase of services also includes the pur-chase of all IT systems required by Siemens Bank

Given the excellent credit quality of the Siemens Bank lending portfolio the Bank only reported a modest level of allowances for losses on loans and advances in 2011 In particular Siemens Bank did not have to recog-nize an individual allowance for any loan

The net operating income largely equates to the net income in accordance with the German Commercial Code (HGB) that Siemens Bank ndash after deduction of any loss carryforward in accordance with HGB ndash will transfer to Siemens AG under the existing profit-and-loss transfer agreement

The net operating income before tax reported here rep-resents Siemens Bankrsquos key financial performance indi-cator for the 2011 fiscal year Other indicators such as return on equity (ROE) and economic value added (EVA) were still of relatively minor importance in 2011 because of the special circumstances relating to the development of banking operations in the first year of such activity however these indicators were factored into the pricing of lending transactions

In the 2011 fiscal year growth at Siemens Bank exceeded the forecast by the management board particularly with respect to the growth in assets and liabilities on the balance sheet

Business performance overview (translation of the German original)

12 13

Siemens Bank GmbH

Management report

2 Risk report21 Risk strategy

Corporate management at Siemens Bank strictly adheres to the targets and requirements of the business strategy It is not possible to implement the Bankrsquos business strat-egy and achieve the specified target returns without con-sciously taking on risk Siemens Bankrsquos risk strategy is based on the requirements of the business strategy and constitutes the framework for identifying assessing man-aging and monitoring risk within the Bank

211 Objective

Siemens Bank is required to specifically identify mea-sure manage monitor and report risks that it has already taken on together with any future risks that may occur as part of the implementation of the Bankrsquos business strat-egy This gives rise to a requirement for integrated man-agement of target returns and risk strategy In order to ensure that this requirement is satisfied Siemens Bank has defined a risk strategy in which top priority is given to a responsible approach to risk and in which a core set of principles is set out as the basis for taking on risk

The risk strategy specifies details for the implementation of the requirements under the business strategy in rela-tion to issues subject to risk and in relation to strategic direction from a risk perspective while at the same time taking into account the overall objectives of the business strategy and the risk appetite of Siemens Bank This is the basis for Siemens Bank to derive its guidelines for risk management and the target system for risk strategy at the Bank The most important risk principle is compliance at all times with both capital adequacy and liquidity require-ments Top priority is also given to avoiding concentration risk and ensuring continuous compliance with statutory and regulatory requirements

Siemens Bank follows a clearly defined process for devel-oping its risk strategy The risk strategy is updated at reg-ular intervals (or if triggered by a particular requirement) based on the business strategy The basis for the risk strat-egy is a detailed analysis of risk factors within Siemens Bank using a risk inventory The risk inventory defines and analyzes the principal types of risk and specifies how these risk types are to be modeled The risk inventory is then used to construct the risk strategy objectives and action plans the overall implementation of which is moni-tored as part of the overall risk reporting system

212 Regulatory requirements

The regulatory requirements for risk management capi-tal adequacy and liquidity together form the regulatory framework for the risk management system at Siemens Bank In particular Siemens Bank ensures that it com-plies at all times with the requirements of the German Sol-vency Regulation (SolvV) the German Liquidity Regulation (LiqV) and the German Minimum Requirements for Risk Management at Banks (MaRisk) In December 2010 the German Federal Financial Supervisory Authority (BaFin) published the Third MaRisk Amendment which must be implemented in full by December 31 2011 The Third MaRisk Amendment imposes in particular stricter requirements for capital adequacy the risk strategy pro-cess liquidity management and the procedure for stress testing

Over the past fiscal year Siemens Bank has already been applying the requirements of the Third MaRisk Amend-ment in full in the implementation of its risk strategy and resulting implementation of its risk management system

22 Risk management and organization

Siemens Bank has put in place a comprehensive risk man-agement system in order to ensure that the measures aimed at achieving the objectives in the business strategy and risk strategy are properly implemented Key compo-nents of the risk management system include the require-ments specified by the capital adequacy concept and liquidity risk management and the implementation of an efficient internal control system

221 Organizational structure

The processes controls and responsibilities with respect to risk management are governed by the written rules and regulations for Siemens Bank These rules and regulations govern in particular the processes for granting loans fur-ther processing of loans monitoring of loan processing intensified loan management and workout risk classifica-tion and review of credit ratings together with the pro-cesses for asset liability management Decision-making authority is governed by the Siemens Bank authority rules and regulations

The general frameworks for internal capital management management and control of individual types of risk and for the methods processes and limit structure within Siemens Bank are documented in the Bankrsquos risk and orga-nizational manuals The risk and organizational manuals are available to all employees of Siemens Bank

Segregation of functions

Within the organizational structure of Siemens Bank there is a strictly defined segregation of front office and back office in terms of both functions and disciplinary arrange-ments and this segregation applies right up to the man-agement board level The areas covered by the Chief Financial Officer (CFO) and the Chief Risk Officer (CRO) are organized entirely within the back office whereas the areas covered by the Chief Executive Officer (CEO) are assigned in full to the front office All credit decisions are only valid if they receive consent from both front office and back office The authority rules and regulations spec-ify that the back office may not be overruled

Operational management of risk at Siemens Bank is car-ried out within the risk strategy framework and subject to the limits specified by the back office The risk strategy framework and risk management limits are defined by the back office whereas the front office is responsible for the operational implementation of risk management Opera-tional risk management is monitored and controlled by a risk monitoring unit that is independent in terms of both functional and disciplinary arrangements and forms part of the back office in the organizational structure The responsibilities of the risk monitoring unit include comprehensive analysis and control of the risks accepted by Siemens Bank Risk analysis includes identifying risks taken on by the Bank developing suitable methods for measuring and quantifying risk and analyzing the current risk situation The analysis of the risk situation is based on the requirements of economic capital adequacy manage-ment Risk control comprises activities to quantify and validate the risks taken on by the Bank monitor the authorized limits and capital adequacy as well as activi-ties associated with risk reporting

Committees

The Siemens Bank Risk Committee is the central commit-tee responsible for implementing integrated risk-return management and risk management within the meaning of section 25a (1a) of the German Banking Act (KWG) In particular the Risk Committee supports the management board to develop and adopt the risk strategy as well as determine the capital adequacy concept The Risk Com-mittee is responsible for the guidelines on credit portfo-lio management in that it specifies appropriate action and sets out the requirements for managing operational risk In particular the Risk Committee is responsible for manag-ing and monitoring the credit portfolio

Authority in relation to credit decisions on significant loan exposures is vested in the Credit Committee in accordance with the authority rules and regulations The committee is responsible for exercising this authority in accordance with these rules and regulations and with due consider-ation of the Siemens Bank risk strategy

The Asset Liability Management Committee (ALM Com-mittee) is responsible for managing and limiting market and liquidity risk Ultimate decision-making authority in all issues related to asset liability management and there-fore also related to the management of market and liquid-ity risk lies with the ALM Committee Actual operational management of market and liquidity risk is carried out by the Treasury function at Siemens Bank This function forms part of the front office in the organizational struc-ture The ALM Committee is also responsible for specify-ing action and requirements related to capital and liquid-ity management

Internal audit is an important tool for verifying the appro-priateness of the risk management system and the inter-nal control system Within the Bank an audit officer ndash an officer who is appointed by the management board and reports directly to the management board ndash is responsible

Risk report (translation of the German original)

14 15

Siemens Bank GmbH

Management report

for ensuring that internal audits are properly conducted The activities of the internal audit unit are determined by an audit schedule which is drawn up on the basis of risk and covers a rolling period of three years The operational implementation of audits determined by the internal audit unit is outsourced by the Bank to the Corporate Audit department of Siemens AG The audit findings are sum-marized in an audit report prepared in consultation with the audit officer The report is then made available to the Bank

Risk reporting

Within Siemens Bank risk reporting to the management board supervisory board (ldquoBeiratrdquo) and the Risk Commit-tee forms part of risk controlling reports are submitted both on a regular basis and ad hoc as required

The central risk reporting tool is the quarterly overall risk report which includes a comprehensive economic capital adequacy assessment and detailed reports on significant individual risks The report on capital adequacy is based on a comprehensive economic capital adequacy assess-ment which in turn includes an analysis of the current internal risk capital requirement in both normal and stress scenarios

The overall risk report is complemented by regular stan-dardized reports on counterparty default risk market risk liquidity risk and operational risk

Counterparty default risk is largely reported in the con-text of the monthly credit risk report Reports focus on the economic and regulatory capital requirement for the credit risks taken on by the Bank and on a detailed portfo-lio analysis from the perspective of any concentration risk incurred by the Bank The analysis of concentration risk includes country risk industry risk concentrations in par-ticular credit rating categories and concentrations in indi-vidual counterparties

Liquidity risk is reported in two ways in the quarterly overall risk report and in the daily liquidity gap profile Refinancing risk is reported weekly These weekly reports also include a review of the materiality of the refinancing risk in the context of capital adequacy as a whole

Market risk is also reported both within the quarterly over-all risk report and in the daily market risk report Reports focus on the economic capital requirement for the market risk taken on by the Bank and on the monitoring of oper-ational value-at-risk limits

222 Internal control system for accounting processes

Objective

The objective of external financial reporting is both to determine the measurement of dividends and to provide information in the proper manner and by the specified deadline dates to the users of the annual financial state-ments and management report Siemens Bank has estab-lished an internal control system for its accounting pro-cesses the purpose of which is to ensure that external financial reporting is conducted in the proper manner and breaches of accounting standards are avoided

Responsibilities

The Accounting Controlling and Regulatory Reporting department is responsible for external financial report-ing and for the internal control system related to account-ing processes This department reports to the Head of Finance Risk Controlling and Operations and thereby to the CFO of Siemens Bank

Processes and controls are also included in the auditing activities of the internal audit unit

Procedures

Procedures and the internal control system for account-ing processes are fully documented in process descriptions and work instructions Accounting policies are described in the closing guidelines for Siemens Bank

Generally accepted accounting policies are applied when preparing the annual financial statements and manage-ment report The appropriateness of these policies is regu-larly reviewed

As far as possible automated IT-based accounting proce-dures are used in order to reduce operational risk when preparing financial statements Any modifications in IT systems relevant to accounting are subject to standardized authorization and verification procedures Suitable recon-ciliation activities and controls ensure the quality of the data processing Manual entries are subject to additional process checks A contingency plan has also been put in place to cover accounting processes

223 Integrated risk-return management and capital adequacy

Integrated risk-return management

The management of internal and regulatory capital the management of liquidity risk and the management of costs arising in connection with internal and regulatory capital requirements form an integral part of integrated risk-return management at Siemens Bank The manage-ment of internal capital is based on an economic capital adequacy approach in which economic capital is the key risk variable

Further development and quality assurance

The internal control system for accounting processes and the underlying guidelines and work instructions are reviewed once a year to ensure that they remain appropri-ate A review is also carried out as part of the authoriza-tion process for new products to establish whether and to what extent the existing rules and regulations need to be modified

Individual training plans have been defined for the employees in the Accounting Controlling and Regula-tory Reporting department These plans are revised and updated each year

The monitoring and control of economic and regulatory capital adequacy enables the Bank to ensure on an ongo-ing basis that the risk accepted within the different fields of activity at Siemens Bank is at all times consistent with the available capital both at the overall bank level and within individual types of risk The management board of Siemens Bank specifies the capital resources necessary for the Bank based on the business and risk strategies and in accordance with the defined target returns and strategic risk requirements As part of the Bankrsquos capital adequacy activities the management board ensures on a continu-ous basis that there is an appropriate ratio between the Bankrsquos risk profile and its available risk-taking potential

The costs of economic capital adequacy requirements are factored into pricing and are integrated into perfor-mance measurement Key figures in terms of pricing are economic value added (EVA) and return on equity (ROE) based on economic capital (return on risk-adjusted capital or RORAC)


16 17

Siemens Bank GmbH

Management report

Within the overall context of integrated risk-return man-agement economic risk capital management is comple-mented by the monitoring and control of liquidity risk Siemens Bank may only accept liquidity risk within the risk tolerance parameters specified by the management board The critical factor when specifying the risk tolerance and the associated limits is to ensure the solvency of Siemens Bank even if a serious crisis should occur

Capital adequacy

Siemens Bank has defined a concept for monitoring its capital adequacy in order to ensure that it has sufficient capital and liquidity at all times as required by section of 25a KWG The Bankrsquos management board reviews the capi-tal adequacy concept on an annual basis (and in the inter-vening period if warranted by a change in circumstances) and modifies the concept where required based on the business and risk strategy The modified concept is then approved by the Bankrsquos supervisory board (ldquoBeiratrdquo) for the subsequent fiscal year

Siemens Bank applies the ldquogone concernrdquo method (protec-tion for creditors) in its internal management and limita-tion of risk The gone concern method is based on a com-prehensive risk approach in combination with a high con-fidence level the primary objective of which is to provide effective protection for creditors The confidence level is based in this case on Siemens Bankrsquos current target rating of AA- This target rating means the target probability of surviving is 9995 with a risk horizon of one year

Capital adequacy is measured by comparing the economic capital requirement derived from the main types of risk with the current risk-taking potential Using the gone con-cern method it is generally possible to use the net asset value of the Bank in addition to the regulatory risk capi-tal because the gone concern method is based on a com-prehensive risk approach Currently the Bankrsquos risk-tak-ing potential comprises entirely Tier 1 capital net of a loss carryforward

The breakdown of risk-taking potential at Siemens Bank as at September 30 2011 was as follows

(euro million) 2011

Tier 1 capital 2500

Loss carryforward -01

Risk-taking potential 2499

Breakdown of risk-taking potential

To quantify the internal capital requirement Siemens Bank applies Value-at-Risk approaches with a confidence level of 9995 and a risk horizon of one year An excep-tion is operational risk which is quantified using the Basic Indicator Approach in accordance with SolvV

Siemens Bank currently classifies the following types of risk as material

Counterparty default risk

Market risk

Liquidity risk (in the sense of risk of insolvency)

Operational risk

The management board allocates the available risk-tak-ing potential to the individual types of risk based on the Banklsquos business and risk strategies This process of alloca-tion is supported by an analysis of risk factors and a regu-lar risk inventory The allocation of risk-taking potential as at September 30 2011 was as follows

(euro million) 2011

Available risk-taking potential 2499

Safety buffer for non-material risks 125

Safety buffer for stress tests 499

Free risk-taking potential 1875

Risk capital for operational risk 50

Allocatable risk-taking potential 1825

Risk capital for counterparty default risk 1805

Risk capital for market risk 20

Allocation of available risk-taking potential

When determining the economic capital requirement Siemens Bank does not assume that there will be any diversification effect among the individual risk types Except in the case of liquidity risk a specific risk amount is determined for each of the material risk types listed

above Liquidity risk (in the sense of risk of insolvency) is not covered via risk capital as part of the capital adequacy analysis because there is no meaningful way in which this can be achieved In its place liquidity risk (in the sense of risk of insolvency) is managed by using a liquidity gap profile including a system of limits specified by the ALM Committee These limits are derived from Siemens Bankrsquos liquidity risk tolerance

Other risk types currently classified by the Bank as non-material ndash such as strategic risk funding risk model risk and verity risk ndash are together covered by an overall safety buffer Funding risk is factored in and managed as part of liquidity risk management

Stress testing

In the context of capital adequacy Siemens Bank has defined appropriate stress test scenarios for each mate-rial risk The stress tests are aligned with the action plans and objectives defined in the business and risk strate-gies as well as the regulatory requirements in MaRisk The implementation of stress tests is based on the stress test-ing policy agreed on by management board This policy is reviewed and if required modified in response to cir-cumstances but in any case at least once a year Internal methods for measuring material risks are used in imple-menting the stress tests The initial parameters for the various methods are adjusted on the basis of both hypo-thetical and historical stress scenarios The Bank analyzes both risk-specific scenarios and overarching scenarios that involve some or all of the risk types Stress testing is inte-grated into the analysis of capital adequacy to enable the Bank to identify any need for action at an early stage and

ensure capital adequacy even when tough market condi-tions prevail

As at September 30 2011 the breakdown of the risk capi-tal requirement (including safety buffer) was as follows

(euro million) 2011

Risk-taking

potential

Risk capital

require-

ment

Risk capital for operational risk 50 50

Risk capital for counterparty default risk 1805 544

Risk capital for market risk 20 08

Total (normal scenario) 1875 602

Safety buffer for non-material risks 125 125

Safety buffer for stress tests 499 243

Total (stress scenario) 2499 970

Risk capital requirement as at September 30 2011 by risk type

The risk capital requirement relating to the safety buffer for non-material risk is reported as utilizing the full amount of the corresponding available risk-taking potential The same also applies to operational risk the risk capital requirement in this case being determined in accordance with the Basic Indicator Approach as specified in SolvV

The most significant risk is credit risk which is also the main driver behind the utilization of the stress buffer This reflects Siemens Bankrsquos business and risk strategies

In both normal and stress scenarios the utilization of risk-taking potential over the whole of the fiscal year was the


18 19

Siemens Bank GmbH

Management report

same as or below the level shown for September 30 2011 As far as the 2012 fiscal year is concerned Siemens Bank is forecasting that the capital adequacy situation will remain at a comfortable level based on the risk profile in the business and risk strategy

Regulatory capital adequacy

In addition to economic capital management in the con-text of capital adequacy and the management of liquid-ity risk there is a second component of capital adequacy management within Siemens Bank namely the monitor-ing and control of regulatory capital adequacy in accor-dance with the German Solvency Regulation (SolvV) and of key liquidity ratios in accordance with the German Liquidity Regulation (LiqV)

As at September 30 2011 the breakdown of regulatory capital at Siemens Bank was as follows

(euro million) 2011

Regulatory capital 2499

Paid-in capital 50

Capital reserves and other eligible reserves 2449

Total Tier 1 capital in accordance with section 10 (2a) KWG 2499

Total Tier 2 capital before capital deduction in accordance with section 10 (2b) KWG

00

Deductions from Tier 2 capital in accordance with section 10 (6) and (6a) KWG

00

Total Tier 2 capital in accordance with section 10 (2b) KWG 00

Total available capital (adjusted) in accordance with section 10 (1d) KWG

2499

Breakdown of regulatory capital as at September 30 2011

For the purposes of determining capital adequacy the regulatory capital is the same as the risk-taking potential

Siemens Bank uses the Standardized Approach to credit risk for the purposes of measuring and covering the regu-latory capital requirements in respect of credit risk It uses the Standardized Approach for measuring market risk and the Basic Indicator Approach for measuring operational risk

The following table shows the regulatory capital require-ments for the individual risk types

(euro million) 2011

1 Counterparty default risk

Counterparty default risk Standardized Approach

Central governments 32

Institutions 58

Corporates 688

Other 05

Overdue positions 00

Total counterparty default risk 783

2 Market risk

Standardized Approach

Currency risk 02

Total market risk 02

3 Operational risk

Basic Indicator Approach 50

Total operational risk 50

Total regulatory capital requirement 835

Regulatory capital requirement as at September 30 2011

Under regulatory requirements Siemens Bank must ensure a total capital ratio of 12 (as defined by SolvV) for the first three years of its business activities From the 20132014 fiscal year onward it will have to ensure at least the standard total capital ratio which is currently 8 The total capital ratio is the ratio of Siemens Bankrsquos regulatory capital to the total amount from risk-weighted assets As at September 30 2011 the total capital ratio for Siemens Bank was 2396 As Siemens Bankrsquos equity comprises solely Tier 1 capital components the total capi-tal ratio is the same as the Tier 1 capital ratio This ratio is therefore significantly higher than the total capital ratio of 12 specified in regulatory requirements

The difference between the regulatory capital require-ment (euro835 million) and the economic risk capital requirement in a normal scenario (euro602 million) results from the Bankrsquos use of its own risk models in its calcula-tion of the economic capital requirement


Siemens Bank understands counterparty default risk to mean possible loss of value resulting from partial or com-plete default or from a deterioration in the credit rating of customers of Siemens Bank Within counterparty default risk overall Siemens Bank makes a distinction between credit risk counterparty risk and issuer risk

The framework of rules and regulations for identifying managing and monitoring counterparty default risk com-prises the credit policy and its associated guidelines for credit risk management The credit policy is a comprehen-sive description of procedures tools roles and responsi-bilities for all persons involved in the process The policy is reviewed at least once a year to ensure that it is up to date

Credit risk

Credit risk refers to the risk that a borrower will fail to meet his or her obligations to Siemens Bank under a loan agreement either partially or in full Credit risk also includes transaction risk under loan agreements the risk of default in connection with deposits made by Siemens Bank and country risk Country risk is the risk of con-straints on monetary transfers or currency conversions as a result of official decisions or political restrictions in a particular country Country risk also includes sovereign risk ndash ie the risk that governments or central banks will fail to meet their obligations to Siemens Bank either par-tially or in full Credit risk is the principal form of counter-party default risk to which Siemens Bank is exposed

Counterparty risk

Counterparty risk refers to the risk that a counterparty in a forward transaction or derivative will fail to meet its obli-gations to Siemens Bank either partially or in full In the last fiscal year Siemens Bank was not exposed to any sig-nificant risk amounts in connection with counterparty risk because of the low number of derivative risk positions held by the Bank

Issuer risk

Issuer risk is the risk of a deterioration in the credit rating of an issuer or the risk that an issuer will default either partially or in full Siemens Bank does not currently hold issuer risk positions of any kind

231 Risk classification

The classification of risk and the associated credit rating for Siemens Bank customers play a key role in the process for granting loans assessing new business and determin-ing the internal risk capital requirement Siemens Bank has a number of rating procedures at its disposal for deter-mining customer credit ratings The rating procedures are based on the attributes of the different customer groups and on specific product features for example there are separate criteria for determining ratings in connection with project finance Rating procedures are based on sta-tistically validated models and are optimized on an ongo-ing basis Regular backtesting forms the core of this opti-mization process in order to ensure that the Bank achieves the best possible level of forecast quality and discrimina-tory power within its rating procedures

Siemens Bank has defined 10 rating classes to enable it to achieve a meaningful differentiation between credit ratings There are up to three further subclasses within each rating class (eg 3+ 3 3-) This system consists of a total of 19 different credit ratings overall The rating cate-gories can be reconciled with external credit ratings using a conversion table If credit ratings are available from an external provider in any particular instance these external ratings could be used as the input for a credit rating pro-cedure All external credit ratings used by the Bank in its risk classification procedures are obtained exclusively from Standard amp Poorrsquos Fitch or Moodyrsquos Even if an external credit rating is used Siemens Bank still carries out a credit rating analysis using its own knowledge and information Credit rating classes 1 to 7 are used for non-encumbered customers If a borrower is classified with a credit rating of 8+ or worse the borrower concerned is transferred to intensified loan management A borrower may in any case be transferred to intensified loan management without a downgrade to a rating of 8+ or worse if other criteria for intensified loan management are met ndash eg a request by


20 21

Siemens Bank GmbH

Management report

the customer for loan restructuring If a borrower is clas-sified with the credit rating of 9 or worse the borrower concerned is transferred to the workout unit Rating cate-gory 9 covers all borrowers who have been subject to loan restructuring category 10 comprises all borrowers already in default If a borrower has payment obligations that are overdue by more than 90 days the borrower concerned is generally classified in category 10

The risk classification process also takes into account the country risk associated with a borrower The credit rating for a borrower must always be considered in relation to the rating for the borrowerrsquos country and is generally sub-ject to an upper limit based on the country risk

Rating procedures are optimized continuously and are reg-ularly subject to backtesting However the Bank does not reassess credit ratings or revise its rating procedures as a result of general short-term economic factors (through-the-cycle credit ratings) This is particularly important given the portfolio strategy of focusing on loan agree-ments with long maturities because through-the-cycle credit ratings ensure that the Bank makes a long-term assessment of credit quality

A borrowerrsquos credit rating is reviewed at least once a year on the basis of the latest available information Credit ratings are reviewed immediately if there are changes in specific borrower circumstances or significant changes in the economic environment

232 Portfolio management and modeling

The credit portfolio is managed using an integrated approach comprising management of expected and unex-pected losses procedures for early detection of risk stress testing procedures and comprehensive assessment of new business

Expected loss

To determine the expected loss the Bank forecasts the average loss it expects based on the current credit rat-ing and the expected recovery rate for each and every borrower The expected loss is a key figure in portfolio analy sis and a key input variable for pricing new busi-ness When determining risk as part of portfolio analysis the expected loss is calculated for a period of one year for the purposes of pricing new business the maturity of the exposure is used in order to calculate the expected loss pricing takes into account both the loan amount to be paid out and any weighted amounts from open exter-nal credit lines so that the Bank can estimate the business volume in the event of a default

Unexpected loss

A credit-value-at-risk approach is used to analyze credit portfolio risk and determine the economic capital require-ment The credit value at risk serves to quantify the unex-pected loss and is a key risk variable in portfolio model-ing In this calculation Siemens Bank uses a risk horizon of one year and a confidence level of 9995 The confi-dence level is derived from Siemens Bankrsquos target rating of AA- Credit risk modeling at the portfolio level uses a simulation-based asset-value model The asset-value model simulates the probability of default of the borrower using the borrowerrsquos return on company value To deter-mine the return on company value Siemens Bank uses a multi-factor model comprising both macroeconomic and borrower-specific factors Customers with similar eco-nomic characteristics are aggregated into risk units in order to calculate the unexpected loss The stronger the correlation between a risk unit and macroeconomic fac-tors the greater the fluctuation in this unitrsquos probability of default if there are changes in the macroeconomic factors The fluctuation in the macroeconomic and the borrower- specific variables and therefore the probability of default is simulated using a Monte Carlo approach A loss distribution for the credit portfolio is generated from the resulting changes in the probability of default In addition to the correlations of the risk units another key input variable for the Monte Carlo simulation is the probability of a credit rating migration To obtain this data the Bank draws up a table based on historical credit rating migrations At each stage in the Monte Carlo simu-lation the table provides the probability of migration to a better or worse rating category for each risk unit The simulated loss distribution takes into account both losses from defaults and economic losses already incurred by a risk unit as a result of the deterioration in credit rating The exposure for a risk unit comprises the loan amount paid out and any weighted amount related to open exter-nal credit lines The credit value at risk and the risk con-tributions for the risk units are then derived from the loss distribution In addition to the credit value at risk the risk contributions from the largest portfolios and segments are also calculated in order to measure concentration risk

Country risk

Country risk is measured by analyzing concentration risk for individual countries in terms of economic capital requirement and credit exposure Country risk is limited both by preventive action in which exposure limits must be adhered to during the course of the credit process and by the ongoing analysis of concentration risk in individual countries


22 23

Siemens Bank GmbH

Management report

Backtesting

Siemens Bank carries out monthly backtesting of the risk classification and probabilities of default as well as an analysis of rating migrations in order to ensure and refine the level of quality in its modeling of expected and unex-pected loss (credit value at risk) In addition other param-eters used in determining risk are examined as part of an annual review of risk models and rating procedures Back-testing of rating procedures in terms of forecast quality and discriminatory power takes place monthly If there are any anomalies the results are used as the basis for adjust-ing structures and the methodology

Pricing

As part of the credit process new business is assessed using measurement methods and pricing tools These methods and tools factor in funding costs and expected losses as well as administrative expenses and the costs in connection with economic risk capital All the essential aspects of risk and return are therefore taken into account in the assessment of new business The parametrization of the pricing tool is based on the parametrization defined within the portfolio management process and thereby ensures consistency with the Bankrsquos integrated risk-return management Key figures determined from the pricing process are the economic value added (EVA) and return on equity (ROE) or return on risk-adjusted capital (RORAC) for the new business

Early detection of risk

The credit rating process at Siemens Bank is based on established monitoring and reporting processes ensuring that credit ratings are up to date Qualitative information is subject to regular monitoring and promptly included in any credit rating assessment In addition to this early detection of risk in the credit rating process Siemens Bank has established a quantitative early risk detection system based on credit spreads observed in the markets In this system the Bank carries out a risk analysis based on trends in CDSs or bond spreads so that it is able to respond quickly to any market fluctuations and initiate corrective measures if required

Stress testing

Credit portfolio modeling and management using credit value at risk is complemented by targeted sensitivity analy ses and stress tests The purpose of sensitivity analy-ses is to consider individual risk factors in isolation Stress tests on the other hand provide a holistic view for the pur-poses of assessing credit risk By integrating stress test-ing into the analysis of capital adequacy the Bank is able to identify any areas in which action is required Inverse stress tests also play a particular role Although these inverse tests do not form part of the analysis of capital adequacy they are nevertheless important indicators in the early detection of risk and in the identification of pos-sible risks to capital adequacy

The model scenarios used for the stress tests take into account both historical scenarios and the strategic direc-tion currently being pursued by Siemens Bank At the core of the scenarios is a macroeconomic model that simu-lates the impact of different economic indicators on the credit portfolio and the Bankrsquos capital adequacy Within the scenarios Siemens Bank makes a distinction between a slight less severe and a severe recession

233 Risk mitigation techniques

The risk classification and the accompanying credit rating of the borrower form the basis for the credit decision and for the analysis of the expected and unexpected loss The borrowerrsquos credit rating itself is determined independently of any individual transactions and therefore also indepen-dently of available collateral However collateral still rep-resents an important component in the assessment of the risk in a lending transaction

Types of collateral

In its management of credit risk Siemens Bank makes a distinction between two fundamental categories of collateral

The first category comprises assets in the form of finan-cial or other collateral that the Bank can realize in the event of a default thereby allowing the Bank to limit the potential loss This category includes in particular physical assets in the case of capital investment loans or project finance and also cash collateral

The second category comprises collateral in the form of guarantees furnished by independent third parties

Collateral management

Both categories of collateral form an integral part of credit risk management at Siemens Bank provided that such collateral meets internal requirements for collateral that can be accepted by the Bank Specifically collateral in the second category is only acceptable if the credit rating of the guarantor is better than the rating of the original bor-rower the guarantee is legally and directly enforceable and the guarantor is not an individual In the case of syn-dicated loans the management of collateral may be trans-ferred to the agent for the loan syndicate

Collateral in the first category results in a reduction in the expected loss and unexpected loss because the recovery rate for the transaction is increased Collateral in the sec-ond category also leads to a reduction in the expected and unexpected loss in that the credit rating of the guarantor is also factored into the calculation

234 Allowances for losses on loans and advances

Siemens Bank recognizes individual allowances for loans classified as subject to workout These allowances are intended to cover the expected loss after taking into account any expected proceeds from the realization of collateral Siemens Bank had not recognized any individ-ual allowances as at September 30 2011

Siemens Bank also recognizes general provisions to cover the latent credit risk in the portfolio of loans and advances In this case rating-related allowance rates are applied to the unsecured exposure These allowance rates include rating-related assumptions on the probability of default and assumptions on the proportion of loss in the event of a default The rating also factors in an assess-ment of country risk with the result that any general pro-vision recognized by the Bank also covers the assumed latent country risk

235 Analysis of the credit portfolio as at September 30 2011

As at September 30 2011 the economic capital require-ment for counterparty default risk amounted to euro544 mil-lion The risk-taking potential allocated to cover this capi-tal requirement was euro1805 million Over the course of the fiscal year the utilization of the risk-taking potential steadily increased in line with the growth in the portfo-lio The amount of the capital requirement is largely deter-mined by the credit portfolio volume borrower credit rat-ings and borrower industrial sectors

The credit portfolio is focused on corporates project com-panies and public-sector borrowers in line with the Bankrsquos business strategy As at September 30 2011 the face value of loans in the credit portfolio was euro9243 million of which euro8843 million was accounted for by corporates and project companies and euro400 million by public-sector borrowers


24 25

Siemens Bank GmbH

Management report

In the corporate business activities are focused on the energy manufacturing and transport sectors

The breakdown of the Siemens Bank credit portfolio by credit rating as at September 30 2011 is shown in the following table

(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243

Credit portfolio by credit rating

(face value measured at closing exchange rates)

As at September 30 2011 the investment-grade expo-sure (ratings of 1 to 5+) amounted to euro7088 million and the non-investment-grade exposure (ratings of 5- to 10) euro2155 million Currently there are no defaults in the credit portfolio (credit rating 10)

The breakdown of the credit portfolio by country group (based on the registered office of the borrower) highlights the Bankrsquos business strategy of focusing on customers in Europe and Asia

(euro million) 2011

Germany 1393

Euro zone excluding Germany 4043

EU (excluding euro zone) 1349

Europe (non-EU) 1539

Asia 682

Americas 237

Total 9243

Breakdown of credit portfolio by country group (face value measured at closing exchange rates)

Currently Siemens Bank does not have any exposures involving borrowers in AustraliaOceania or Africa

24 Liquidity risk

Siemens Bank only takes on liquidity risk to the extent that this is necessary to implement its business strategy The Bank is only permitted to take on refinancing risk within tightly defined limits

The framework of rules and regulations for identifying managing and monitoring liquidity and market risk com-prises the ALM (asset liability management) policy and its associated guidelines The ALM policy is a comprehen-sive description of procedures tools roles and responsi-bilities for all persons involved in the process The policy is reviewed at least once a year to ensure that it is up to date

241 Risk management


Liquidity risk (in the sense of risk of insolvency) is the risk that Siemens Bank will not be able to meet its pay-ment obligations on time or in full Siemens Bank uses a detailed liquidity gap profile to manage liquidity risk In this profile the balances of contractually agreed and modeled cash flows are reported on a daily basis A sub-sequent gap analysis for the individual time buckets then ensures that any emerging liquidity shortfall is detected at an early stage and that Siemens Bank can meet its pay-ment obligations at all times

During the course of the day the latest account balances are continuously monitored in order to ensure liquidity is maintained

If a liquidity shortfall should nevertheless arise Siemens Bank has a liquidity contingency plan that sets out the communication channels and a comprehensive range of contingency measures

Refinancing risk

Refinancing risk is the risk that Siemens Bank will only be able to close gaps in its liquidity gap profile by obtain-ing funds at increased market interest rates Each week the maximum present value loss arising from changes in funding terms and conditions is calculated in the form of liquidity value at risk (LVaR) based on the net cash flows determined in the liquidity gap profile

Limit structure

Siemens Bank defines its liquidity risk tolerance over a period of 12 months and thereby limits the gaps deter-mined in the liquidity gap profile Liquidity risk controlling continuously monitors compliance with these limits If a limit is exceeded the ALM Committee has to be informed without delay and action has to be initiated to restore compliance with the limit

242 Modeling

Modeling

In order to ensure that the liquidity gap profile is a full and complete presentation of the current liquidity posi-tion Siemens Bank includes optional and modeled cash flows as well as deterministic cash flows in the profile These optional and modeled cash flows include for exam-ple committed but undrawn lines of credit the notified credit business and outstanding project finance drawings The assumptions made allow Siemens Bank to draw up a comprehensive risk-adjusted presentation of its liquidity position


26 27

Siemens Bank GmbH

Management report

Liquidity buffer

For liquidity shortfalls Siemens Bank holds a buffer of high-quality liquid assets eligible for use as collateral in obtaining funding from central banks A core compo-nent of this strategy is Siemens Bankrsquos participation in Deutsche Bundesbankrsquos KEV program (ldquoKrediteinreichungs-verfahrenrdquo) in which the Bankrsquos loans to customers are eli-gible for submission to Deutsche Bundesbank as collateral Credit balances with central banks or cash are currently not included in the liquidity buffer

Stress testing

Siemens Bank has defined hypothetical stress test sce-narios for liquidity risk These scenarios include both mar-ket and institution-specific liquidity risks In addition the Bank also regularly analyzes a combined scenario

Backtesting

The modeling assumptions regarding future cash flows included in the liquidity gap profile and the assumptions used in the calculation of the LVaR are regularly validated by liquidity risk controlling

Liquidity risk controlling also reviews the defined stress test scenarios

The early warning indicators defined to highlight a liquid-ity shortfall are validated on a regular basis ndash but in any case at least once a year ndash to ensure that they are up to date and complete On a similar cycle liquidity risk con-trolling reviews the action specified in the event of a liquidity shortfall to assess whether this action is effec-tive and can be implemented within the required period of time

243 Liquidity analysis as at September 30 2011

The liquidity gap profile comprising deterministic optional and modeled cash flows does not show significant accu-mulated negative cash flows at any point in the period covered Short-term and medium-term cumulative cash flows for a period of up to one year are consistently posi-tive As at September 30 2011 the net cash surplus for one day was euro11400 million for one week euro5053 mil-lion for one month euro 823 million and for three months euro4946 million Within these figures the optional and modeled cash flows that are factored into the liquidity gap profile have already been adjusted for risk Since the start of business operations Siemens Bank has continu-ously increased the size of the liquidity buffer in order to safeguard its liquidity on an ongoing basis As at Septem-ber 30 2011 this buffer amounted to euro 1215 million of assets eligible as collateral with central banks

Siemens Bank expanded its deposits business during the course of the fiscal year As at September 30 2011 it reported a liquidity value at risk of just euro01 million mainly because funding was largely achieved with matched maturities

25 Market risk

Siemens Bank understands market risk as possible loss of value resulting from fluctuations in market prices and from volatility in financial instruments

Siemens Bank does not have a trading book currently the Bankrsquos business and risk strategy only allows it to enter into trading deals for the purposes of mitigating risk To the greatest possible extent Siemens Bank there-fore avoids market risk positions and only enters into such transactions within tightly specified parameters Currently market risk at Siemens Bank comprises interest-rate risk and currency risk

Market liquidity risk is managed in an integrated approach in conjunction with the management of market risk because Siemens Bank is only exposed to market liquid-ity risk as a result of the plain vanilla interest-rate and cur-rency derivatives that it enters into to reduce the risk aris-ing from open positions

251 Risk management

The Asset Liability Committee (ALM Committee) at Siemens Bank is responsible for the Bankrsquos asset liability manage-ment and therefore also for the management of market risk In particular the ALM Committee specifies the opera-tional limits for the management of market risk based on the risk-taking potential allocated in the capital adequacy concept

Responsibility for operational management within the system of limits specified by the ALM Committee lies with the Siemens Bank Treasury function Siemens Bank takes on market risk positions solely in the context of its asset liability management Currently the Bank may only enter into derivatives in order to reduce risk and not to take on new market risk positions

Risk positions are monitored daily by market risk control-ling These activities include both the monitoring of com-pliance with operational limits and an analysis of the financial profit-and-loss account on a daily basis If a limit is exceeded the ALM Committee has to be informed with-out delay and action initiated to restore compliance with the limit

252 Modeling

Risk model

Siemens Bank uses an internal value-at-risk model based on a variancecovariance approach to measure market risk Economic capital is determined by calculat-ing the value at risk with a confidence level of 9995 and a risk horizon of one year Operational value-at-risk limits are then derived from this calculation If the opera-tional value-at-risk limits are determined and monitored using a different confidence level or risk horizon the Bank ensures that there is always a reconciliation to capital adequacy

Stress testing

The measurement of market risk using value at risk is complemented by targeted sensitivity analyses and stress tests These analyses and stress tests simulate extreme fluctuations in individual risk factors or particular crisis sit-uations that are not possible to encompass in the value-at-risk measurement approach The scenarios used in these analyses and tests are based on both hypothetical portfo-lio-specific scenarios and historical data relating to actual extreme fluctuations in risk factors The integrated stress tests in the economic capital adequacy assessment use in particular three degrees of macroeconomic downturn (slight less severe severe) as the basis for the tests

Backtesting

The one-day value at risk is backtested in order to ensure the quality of the forecast produced by the value-at-risk model The change in value in the underlying positions (hypothetical PampL) is compared against the calculated value at risk If the hypothetical PampL exceeds the calcu-lated value at risk more than five times within a year Siemens Bank makes adjustments to the modeling This may involve either a general modification of the model or the introduction of a penalty factor Penalty factors are based on the requirements in the Internal Measurement Approach as specified in SolvV

253 Market risk analysis as at September 30 2011

As at September 30 2011 the economic capital require-ment for market risk amounted to euro08 million The risk-taking potential allocated to cover this capital requirement was euro20 million At no time in the fiscal year did the Trea-sury function come close to its loss limits The utilization of the allocated risk-taking potential did not exceed the allocation at any point in the fiscal year


28 29

Siemens Bank GmbH

Management report

26 Operational risk

Operational risk is defined as the risk of losses resulting from inappropriate or failed processes or technical sys-tems inappropriate behavior or failures on the part of individuals or resulting from external events This defini-tion includes legal and reputational risk

The framework of rules and regulations for identifying managing and monitoring operational risk is provided by the operational risk policy This policy is a comprehensive description of procedures tools roles and responsibili-ties for all persons involved in the process The policy is reviewed at least once a year to ensure that it is up to date

The organizational structure of operational risk manage-ment comprises both central and local components Basic responsibility for the management of operational risk lies at the local level with the relevant Siemens Bank depart-ments and units This management is coordinated by an operational risk manager appointed by the management board The operational risk manager acts as a central point of contact for all matters concerning operational risk management

261 Risk classification and management

Siemens Bank conducts an annual self-assessment in which it systematically collects and analyzes data on oper-ational risk The various risks are then prioritized based on the risk potential determined in the analysis The Bank then initiates appropriate countermeasures with continu-ous monitoring in order to mitigate any critical risks that have been identified

Any losses actually incurred above a defined threshold value are recorded without delay in the Bankrsquos own data-base of losses and analyzed to establish the cause of the losses The Risk Committee decides on any action that needs to be initiated and the operational risk manager monitors the implementation of such action

Siemens Bank also has a comprehensive contingency plan to ensure that the business can continue to operate in the event of process or system failures This plan is regularly reviewed to verify that it is fit for this purpose

Siemens Bank uses the Basic Indicator Approach as speci-fied in SolvV in order to measure and cover the regulatory capital requirement for operational risk

To measure the economic capital adequacy requirement Siemens Bank reduces the available risk-taking potential by the amount determined for regulatory purposes under the Basic Indicator Approach The Bank also conducts reg-ular stress tests on its economic capital adequacy as part of the economic capital adequacy assessment in order to minimize the risk in this static approach caused by possi-ble fluctuations in earnings

262 Analysis of operational risk as at September 30 2011

Operational risk forms an integral part of the overall risk report and is subject to regular quarterly and annual risk reporting

Ad hoc reports are also used to report any material losses to the management board without delay These reports include any reputational damage or losses due to fraud

The total value of operational losses in the past fiscal year was well below euro01 million

27 Business and strategic risk

Business and strategic risk is managed by the manage-ment board of Siemens Bank at an overarching level for the entire Bank rather than as part of the day-to-day busi-ness of individual departments

Business and strategic risk is assessed during the course of the process for determining the Bankrsquos business and risk strategies Business risk is managed by identifying potential business and specifying target markets as part of business strategy planning and by subsequently deriving business strategy targets and action plans The business strategy then serves as the basis for analyzing risk factors and potential risk The Bank subsequently draws up a risk inventory and prepares a risk strategy specifying targets and action plans These targets and action plans are bro-ken down into the individual risk categories and are moni-tored on an ongoing basis by back-office units

Changes in the overall risk situation and therefore also in strategic risk are analyzed quarterly by the Risk Commit-tee Particular emphasis is given to analysis of the credit portfolio in terms of strategic alignment and trends

3 Other informationSiemens Bank did not maintain any branches in the 2011 fiscal year

Siemens Bank is involved in a large number of programs and initiatives under the auspices of Siemens AG such as

programs to ensure compliance with legal requirements as an indispensable basis for demonstrating the integrity of the grouplsquos business activities so that Siemens is per-ceived by stakeholders as a trustworthy partner

Risk report | Other information (translation of the German original)

sustainability management to promote responsible con-duct at economic environmental and social levels for the benefit of future generations

diversity management to support employees in various private and professional situations and help them meet the challenges in both their working and private lives and

initiatives to support a work-life balance for example tax-free childcare subsidies and childcare places linked to employment contracts

With effect from December 1 2011 Siemens AG added euro2500 million in cash to the capital reserves of Siemens Bank There were no other significant events to report after the end of the fiscal year

30 31

Siemens Bank GmbH

Management report

4 OutlookTrends in the economic environment

In its economic forecast published in the fall of 2011 the Federal Association of German Banks (BDB) forecast a slowdown in both the European and global economies but did not expect this to turn into a recession

Siemens Bank is also assuming that the present slowdown will continue as part of the economic cycle It also expects to see further weakening in economic growth as gov-ernments continue to consolidate national budgets and cut public expenditure and as the uncertainty caused by the sovereign debt crisis in Europe and the United States continues

Nevertheless Siemens Bank believes that the demand for project finance and capital investment loans will continue to hold up especially in Asia and also in Europe with the result that there will still be attractive growth opportuni-ties for Siemens Bank

Business performance of Siemens Bank in 2012 and 2013

Siemens Bank is expecting to be able to achieve a signifi-cant increase in its net operating income before tax over the next few fiscal years Although the Bank is forecasting a decline in short-term deposits from Siemens AG and its subsidiaries and an associated fall in loans and advances to banks the Bank believes that the effect on business volume and net interest income will be more than off-set by the impact from significant growth in loans and advances to customers Given the quality of its credit port-folio Siemens Bank only expects to see a modest increase in allowances for losses on loans and advances over the next fiscal years The Bank predicts that there will also be a modest increase in general administration expenses as a consequence of the growth in business volume In addi-tion given the forecast increase in net interest income Siemens Bank believes that its risk management and pro-cessing services will become less important overall as a pillar of the business and a component of the Bankrsquos earnings

The internationalization of Siemens Bank will also be an important contributing factor in the further development of the Bank Siemens Bank has notified the German Fed-eral Financial Supervisory Authority (BaFin) of its intention to establish a branch in London in the United Kingdom in the second quarter of the 2012 fiscal year The Bank plans to use this branch to continue to strengthen and expand its lending and guarantee business another pil-lar of the Bankrsquos overall business by establishing a physi-cal presence in London a key financial center One of the Bankrsquos aims in establishing this branch is to exploit syner-gies and cost benefits by ensuring that the branch special-izes in the credit business but at the same time makes use of the Bankrsquos central infrastructure in Munich The branch will actually be established by means of a business trans-fer mechanism in which the employees of another sub-sidiary of Siemens AG that already conducts a credit busi-ness in London will be transferred to the Bank The Bank is also planning to buy selected parts of the credit portfolio from this subsidiary It is planned that the London branch will start to make a positive contribution to the earnings of Siemens Bank even in its first year of operation During the 2012 fiscal year Siemens Bank will also be evaluating the options for establishing activities in Asia

Outlook (translation of the German original)

32 33

Annual financial statementsof Siemens Bank GmbH Munich for the fiscal year ended September 30 2011 (in euro)

3534

Siemens Bank GmbH


Income statementof Siemens Bank GmbH Munich for the fiscal year ended September 30 2011 (euro)

Note 2011 2010

1 Interest income from 1 000

a) Lending and money market business 1431694496 000

b) Fixed-income securities and book-entry securities 000 000

1431694496

2 Interest expense -703968486 000

3 Fee and commission income 1 2 1375343975 000

4 Fee and commission expense -1330655 000

5 Other operating income 1 3 34345039 000

6 General administration expenses

a) Personnel expenses

aa) Wages and salaries -1020235250 000

ab) Social security post-employment and other employee benefit costs

-163002052-1183237302

000

of which in respect of pensions -euro43271733 000

b) Other administrative expenses -782246820

-1965484122 -5486409

7 Amortization and write-downs of intangible fixed assets depreciation and write-downs of property and equipment

-682409 000

8 Other operating expenses 3 -6528703 000

9 Write-downs of receivables and certain securities and additions to provisions in the lending business

-112360028 000

10 Result from ordinary activities 51029107 -5486409

11 Taxes on income 4 -101580 000

of which deferred taxes euro000 000 000

12 Other taxes not included under item 8 -50621 000

13 Profit transferred under a profit-and-loss transfer agreement

5 -45290497 000

14 Net incomeloss for the year 5586409 -5486409

15 Loss carried forward from prior year 5 -5586409 -100000

16 Distributable profitnet accumulated loss 000 -5586409

Income statement (translation of the German original)

3736

Siemens Bank GmbH


Assets Note 2011 2010

1 Cash and cash equivalents 446760415 000

Credit balances with central banks 446760415 000

of which credit balances with Deutsche Bundesbank 446760415 000

2 Loans and advances to banks 6 447793551080 1009915061

a) Repayable on demand 1247904552 1009915061

b) Other loans and advances 446545646528 000

3 Loans and advances to customers 7 92415774152 000

of which secured by charge over real estate 000 000

of which loans to public-sector entities 000 000

4 Property and equipment 9 3534600 000

5 Other assets 8 8388716 88076

6 Prepaid expenses 10 129740001 000

Total assets 16 540797748964 1010003137

Equity and liabilities Note 2011 2010

1 Amounts due to customers 11 514349314955 000

Other liabilities 514349314955 000


b) With agreed maturity or notice period 514262816938 000

2 Other liabilities 12 96235086 689546

3 Deferred income 10 794059352 000

4 Provisions 13 14 558139571 4900000

a) Provisions for pensions and similar obligations 283897500 000

b) Other provisions 274242071 4900000

5 Equity 15 25000000000 1004413591

a) Subscribed capital 500000000 500000000

b) Capital reserves 24500000000 510000000

c) Distributable profitnet accumulated loss 000 -5586409

Total equity and liabilities 16 540797748964 1010003137

Other obligations 12381078874 000

Under irrevocable lending commitments 12381078874 000

Balance sheetas at September 30 2011 (euro) of Siemens Bank GmbH Munich

Balance sheet (translation of the German original)

38 39

Notes to the financial statementsof Siemens Bank GmbH Munich for the fiscal year ended September 30 2011

4140

Siemens Bank GmbH


Establishment of Siemens Bank GmbH

Siemens Bank GmbH Munich (hereinafter Siemens Bank) was established as Kyros 40 GmbH Munich with articles of incorporation dated March 17 2010 and entered in the commercial register of the Munich local court under reference number HRB 185214 on April 15 2010 As a result of a resolution passed by the shareholder on September 30 2010 the company was renamed Siemens Finance GmbH Munich The change of name was entered in the commercial register on October 5 2010 Under the name Siemens Finance GmbH Munich the company prepared the prior-year financial statements for the short fiscal year from April 7 to September 30 2010

On October 1 2010 Siemens Bank acquired a part of the business owned by Siemens Financial Services GmbH Munich (hereinafter Siemens Financial Services GmbH) The transfer of business largely comprised the transfer of existing contracts and employ-ment contracts from Siemens Financial Services GmbH to Siemens Bank The transfer agreement led to the transfer of 96 employment contracts and personnel-related obligations with a total value of euro424815953 in return for which Siemens Bank received a cash settlement

On November 30 2010 Siemens Bank received a license from the German Federal Financial Supervisory Authority (BaFin) to conduct selected banking transactions As a result of a resolution passed by the shareholder on December 10 2010 the company was renamed Siemens Bank GmbH Munich The change of name was entered in the commercial register on December 17 2010 Siemens Bank commenced banking operations on December 21 2010 and immediately notified BaFin accordingly

Basis of accounting in the annual financial statements of Siemens Bank

The annual financial statements of Siemens Bank for the fiscal year ended Septem-ber 30 2011 have been prepared in accordance with the provisions of the German Commercial Code (HGB) the German Accounting Law Modernization Act (BilMoG) and the German Accounting Regulation for Banks and Financial Services Institutions (RechKredV) The annual financial statements also comply with the provisions of the German Private Limited Companies Act (GmbHG)

All amounts are shown in euros (euro) in accordance with section 244 of HGB

The prior-year financial statements for Siemens Bank had been prepared in accor-dance with the provisions governing small limited companies taking into account the requirements of the German Accounting Law Modernization Act (BilMoG) because at the time the financial statements were prepared the company was not a bank within the meaning of section 1 (1) of German Banking Act (KWG) In accordance with sec-tion 265 (1) of HGB the figures reported in the prior-year financial statements have been restated using the standard formats specified by RechKredV No changes have been made to the measurement of these figures

Pursuant to section 267 (7) of HGB any line items on the standard RechKredV forms that are not relevant to Siemens Bank and have therefore remained blank have been omitted and the numbering has been adjusted accordingly to improve readability

Accounting policies

Loans and advances to banks and customers

Loans and advances to banks and customers are carried at their principal amount or at cost whereby any difference between the amount paid out and the principal amount is recognized as accrued expenses or deferred income and reclassified to the income statement pro rata temporis provided that such a difference has the nature of inter-est Loans advances and any other receivables are classified as current assets and are measured strictly at the lower amount of cost and market

Pursuant to section 11 of RechKredV interest receivables in connection with loans and advances to banks and customers are reported under loans and advances to banks and customers but are not included in the maturity-structure tables of assets and liabilities

General provisions are recognized for latent credit risk These provisions take into account borrower credit ratings rating-related probability of default and the propor-tion of loss in the event of a default No individual allowances were recognized in the 2011 fiscal year

Property and equipment

Property and equipment is measured at cost and reduced by depreciation on a straight-line basis over the estimated useful life of the property and equipment con-cerned Low-value assets with an individual net value of up to euro150 are written off in full in the year of acquisition In the case of items of property and equipment with an individual net value between euro150 and euro1000 the aggregate items recognized for tax purposes are also included in the HGB annual financial statements to simplify matters

Cash and cash equivalents and other assets

Cash and cash equivalents together with other assets are carried at their nominal amounts

Notes to the financial statements (translation of the German original)

4342

Siemens Bank GmbH


Liabilities

Liabilities are carried at their settlement amounts as at the balance sheet date Pursu-ant to section 11 RechKredV interest obligations in connection with amounts due to customers are reported under amounts due to customers but are not included in the maturity structure tables of assets and liabilities

Provisions for pensions

Pension benefit obligations are measured at the settlement amount determined in accordance with the actuarial projected unit credit method based on biometric prob-abilities Estimated future increases in salaries and pensions are factored into the cal-culation of the present value of the defined benefit obligation The discount rate used in the calculation is based on the relevant rate published by Deutsche Bundesbank for a maturity of 15 years

Pursuant to the German Occupational Pensions Act (BetrAVG) Siemens Bank con-tinues to be liable at a subsidiary level for pensions that are provided via an indirect route If the relevant assets of the pension fund fail to cover the settlement amount for the associated pension commitments Siemens Bank covers the shortfall by recog-nizing a provision under provisions for pensions and similar obligations

Netting of assets and liabilities income and expense

Assets whose sole purpose is to satisfy pension obligations or residual partial retire-ment obligations (and cannot therefore be the subject of a claim by any other credi-tors) are measured at fair value Income and expenses associated with these assets are netted with the interest cost in connection with the unwinding of discounts on the corresponding obligations and are reported under general administration expenses social security post-employment and other employee benefit costs In addition these assets are offset against the corresponding underlying obligation If this results in a surplus obligation this obligation is reported under provisions If the value of assets exceeds the obligations the amount is reported as an excess of plan assets over pen-sion liabilities

Provisions for taxes and other provisions

Provisions are recognized in accordance with tax law to cover current taxes No amounts are recognized for deferred tax assets

Provisions include individual appropriate and adequate provisions for all identifiable risks arising in connection with contingent liabilities taking into account estimated future increases in prices and costs

Non-current provisions (ie provisions with a maturity of more than one year) if material are discounted using the average market discount rate over the previous seven fiscal years applicable to amounts of equivalent residual maturity This market discount rate is determined and published by Deutsche Bundesbank Interest income and interest expense in connection with discounting and unwinding the discount on provisions are reported under other operating income and expense because they are unrelated to banking operations

Currency translation

Amounts denominated in foreign currency are translated at the middle rate on the balance sheet date in accordance with section 256a of HGB in conjunction with sec-tion 340h HGB Current receivables and liabilities (ie due within one year) are trans-lated with any differences being recognized in the income statement

Siemens Bank designates accounting groups (ldquoBewertungseinheitenrdquo) in accordance with section 254 HGB on a micro basis in connection with the hedging of currency risk associated with its banking business involving loans and advances to customers amounts due to customers and derivative hedging instruments Based on the terms and conditions of the transactions included in the hedges Siemens Bank assumes that any fluctuations in value arising in connection with the hedged risk will be evened out during the maturity of the transactions covered The high degree of effectiveness in these accounting groups is regularly demonstrated retrospectively by comparing the changes in value caused by currency fluctuations in both the underlying transac-tion and the hedge All the items included in accounting groups are measured using the net hedge presentation method If the measurement of the items included in the hedge accounting results in an unrealized excess loss this is recognized in the form of a provision for onerous contracts in accordance with the HGB imparity principle (whereby unrealized losses are recognized but unrealized gains are not recognized)


4544

Siemens Bank GmbH


Income statement disclosures

1 Geographical breakdown

The breakdown of the total amount for interest income fee and commission income and other operating income by customers based in Germany and by customers based elsewhere is as follows

() 2011 2010

Germany 62 0

Elsewhere 38 0

2 Fee and commission income

Fee and commission income is derived from the following services

(euro) 2011 2010

Risk management services for affiliated companies 1366383975 000

Risk management services for third parties 8960000 000

Total 1375343975 000

3 Other operating income and expense

Other operating income for the most part comprises income derived from the remea-surement (in accordance with HGB) of obligations transferred to the Bank as part of the transfer of business described above

Other operating expense largely comprises net realized currency gains and losses and expenses arising from additions to certain provisions

4 Taxes on income

Siemens Bank forms an integral part of the tax group of Siemens AG Berlin and Munich (hereinafter Siemens AG) for both income tax and VAT purposes Taxes on income therefore just include current withholding taxes

Siemens Bank did not need to recognize any deferred tax liabilities as at Septem-ber 30 2011 Siemens Bank does not recognize any deferred tax assets

5 Profit transfer under a profit-and-loss transfer agreement loss carryforward from the prior year

On October 29 and November 5 2010 Siemens Bank entered into a profit-and-loss transfer agreement with Siemens AG the sole shareholder in Siemens Bank The general meeting approved this agreement with a resolution passed on December 10 2010 The agreement was entered in the commercial register on April 4 2011

Under this profit-and-loss transfer agreement the entire net income for the year determined in accordance with HGB less the loss carryforward from the prior year determined in accordance with HGB will be transferred to Siemens AG


4746

Siemens Bank GmbH


Balance sheet disclosures

6 Loans and advances to banks

(euro) 2011 2010

Loans and advances to banks with maturities of 447747904552 000

up to and including 3 months 447747904552 000

more than 3 months and up to 1 year 000 000

more than 1 year and up to 5 years 000 000

more than 5 years 000 000

7 Loans and advances to customers

(euro) 2011 2010

Loans and advances to customers with maturities of 91902206300 000




more than 5 years 22906392584 000

The loans and advances to customers include loans and advances to affiliated compa-nies with a value of euro8336730343 As in the 2010 fiscal year there were no loans and advances to the shareholder

8 Other assets

Other assets largely comprise receivables arising from the provision of services to third parties and subsidiaries of Siemens AG

9 Statement of changes in fixed assets

(euro) Cost

Oct 1 2010 Additions Transfers Disposals Sept 30 2011

Property and equipment 000 4129409 412999 000 4542408

Office furniture and equipment 000 4129409 412999 000 4542408

(euro) Depreciation and write-downs Carrying amount

Cumulative of which curr year of which additions

2011 2010

Property and equipment -1007808 -682409 -325399 3534600 000

Office furniture and equipment -1007808 -682409 -325399 3534600 000

Property and equipment was used exclusively in connection with banking operations

10 Prepaid expenses and deferred income

(euro) 2011 2010

Prepaid expenses 129740001 000

Premium on loans and advances 124692001 000

Other prepaid expensesaccrued income 5048000 000

Deferred income 794059352 000

Discount on loans and advances 359065005 000

Other deferred incomeaccrued expenses 434994347 000

Other deferred incomeaccrued expenses largely relate to deferred fee income in the credit business

11 Amounts due to customers

(euro) 2011 2010

Amounts due to customers with maturities of 514031467672 000




more than 5 years 10301826325 000


4948

Siemens Bank GmbH


Amounts due to customers are accounted for in their entirety by transactions with affiliated companies Of the total amount due to customers euro425671369498 is due to the shareholder (September 30 2010 euro000)

Siemens Bank has not pledged any assets as collateral for amounts due to customers nor has it transferred any assets as collateral

12 Other liabilities

Other liabilities for the most part comprise personnel-related obligations and liabilities in connection with withholding tax deducted at source

13 Provisions for pensions and similar obligations

Siemens Bank provides various forms of occupational pensions for the employees whose employment contracts were transferred to Siemens Bank as part of the transfer of business as well as for new employees To fund these occupational pensions Siemens Bank has covered its obligations partly by assets that are held externally in trust and subject to restricted access

The majority of current employees at Siemens Bank participate in the Siemens defined contribution plan (BSAV) launched in 2004 BSAV is a pension program covered by assets held in trust For the most part the benefits depend on the contributions made to the scheme and on the investment income from these contributions although the company guarantees a minimum return A lower proportion of current employees still have legacy pension entitlements (known as transitional payments) that are based on the salary of the employee concerned

In addition Siemens Bank offers employees the option of participating in a voluntary deferred compensation scheme The salary components deferred under this scheme are invested in fund units The fund units are only used to cover the resulting pension obligations and are protected against claims from other creditors These assets which had a fair value of euro28357500 as at September 30 2011 (cost value euro30191246) are therefore offset against the pension obligations

As part of the transfer of business from Siemens Financial Services GmbH Siemens Bank assumed responsibility for pension obligations in connection with BSAV legacy pension entitlements voluntary deferred compensation including offsetting of plan assets and transitional payments in an amount of euro240763100

As at September 30 2011 the settlement amount for pension obligations amounted to euro312255000 of which euro28357500 was accounted for by indirect obligations The actuarial measurement of the settlement amount was based on a number of variables including a discount rate of 513 and a pension growth rate of 175 per annum

Given the structure of the main pension schemes measurement assumptions relating to increases in wages and salaries including career trends are of no material signifi-cance in determining pension obligations at Siemens Bank The Heubeck 2005G mor-tality tables are used to determine the probability of death

No provisions for pensions and similar obligations had been recognized in the 2010 fiscal year

14 Other provisions

(euro) Oct 1 2010 Transferred Utilized

Other provisions 4900000 158326741 -154994990

of which with maturities up to 1 year 4900000 146614685 -151050585

(euro) Reversed New Sep 30 2011

Other provisions -183500 266193820 274242071

of which with maturities up to 1 year -183500 263778077 264058677

Other provisions were recognized mainly for personnel-related obligations such as variable income components outstanding vacation pay and long-service bonuses

(euro) 2011 2010

Other provisions 274242071 4900000

Personnel-related provisions 238312473 000

Provisions for projects 22396198 4200000

Provisions for year-end costs 13533400 700000

In the 2010 fiscal year provisions had been recognized for expenses expected to be incurred in connection with the application for a banking license


5150

Siemens Bank GmbH


15 Equity

The changes in equity over the 2011 fiscal year were as follows

(euro) Oct 1 2010 Additions Loss settlement Sept 30 2011

Equity

Subscribed capital 500000000 000 000 500000000

Capital reserves 510000000 23990000000 000 24500000000

Net accumulated loss

-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000

Following a resolution passed on December 1 2010 by Siemens AG as the sole share-holder in Siemens Bank Siemens AG added euro23990000000 in cash to the capital reserves of the Bank The subscribed capital has been fully paid up in cash

16 Assets and liabilities denominated in foreign currency

Siemens Bank has assets and liabilities denominated in foreign currency in the follow-ing equivalent amounts

(euro) 2011 2010

Assets denominated in foreign currency 29473731186 000

Liabilities denominated in foreign currency 29422900571 000

Other disclosures

17 Derivative financial instruments

(euro)

Nominal

Residual maturity Total amount

le 1 year gt1ndash5 years gt 5 years 2011 2010

OTC currency derivatives

FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0

Siemens Bank only enters into derivative financial instruments to cover risks arising in connection with its banking business These derivatives are therefore designated to accounting groups (ldquoBewertungseinheitenrdquo) in accordance with HGB No assets or liabilities for derivative financial instruments were recognized in the fiscal year

18 Accounting groups (ldquoBewertungseinheitenrdquo) in accordance with HGB

Currently Siemens Bank only recognizes micro accounting groups in accordance with HGB in order to hedge currency risk As at September 30 2011 the carrying amounts of assets and liabilities subject to accounting groups were euro28769015829 and euro29362006879 respectively Derivatives with a nominal volume of euro640619699 are also included The hedged currency risk matches the foreign currency equivalent of each item

There were no accounting groups in accordance with HGB in the 2010 fiscal year


5352

Siemens Bank GmbH


19 Employees

In the 2011 fiscal year Siemens Bank employed an average of 951 people in 98 employment contracts (of which nine were part-time employment contracts) The company had no employees in the 2010 fiscal year

20 Other financial obligations

Siemens Bank purchases services from affiliated companies and third parties under the terms of outsourcing agreements The following financial obligations are expected for the 2012 fiscal year as a result of these outsourcing agreements

(euro)

To affiliated companies 720377896

To third parties 94320000

814697896

Siemens Bank is a participating institution in Entschaumldigungseinrichtung deutscher Banken GmbH (German banks compensation fund)

21 Members of the management board and supervisory board (ldquoBeiratrdquo)

The general meeting has appointed the following members of the management board

Roland Chalons-Browne Chief Executive Officer of Siemens Bank and Siemens Financial Services GmbH Munich

Dr Ingeborg Hampl member of the management board and Chief Risk Officer of Siemens Bank

Dr Peter Rathgeb member of the management board and Chief Financial Officer of Siemens Bank

Roland Chalons-Browne did not receive any remuneration for his activities in the 2011 fiscal year

The general meeting has set up a supervisory board (ldquoBeiratrdquo) with the following members

Dr Peter Moritz member of the management board of Siemens Financial Services GmbH Munich and Chief Financial Officer of the cross-Sector Financial Services business of Siemens AG

Hans-Peter Rupprecht Chief Executive Officer of Siemens Treasury GmbH Munich and Corporate Treasurer of Siemens AG

Dr Peter Moritz was elected chairman and Hans-Peter Rupprecht deputy chairman of the supervisory board (ldquoBeiratrdquo) The members of the supervisory board (ldquoBeiratrdquo) did not receive any remuneration for their activities in the 2011 fiscal year

In addition to his activities as CEO of Siemens Bank and Siemens Financial Services GmbH Roland Chalons-Browne is also a member of the following supervisory bodies pursuant to section 340a (4) No 1 of the HGB

Member of the supervisory board of Risicom Ruumlckversicherung AG Gruumlnwald

Non-executive director of Siemens Financial Services Inc Iselin New Jersey United States

In addition to her activities as a member of the management board of Siemens Bank Dr Ingeborg Hampl is a non-executive director of Siemens Financial Services AB Stockholm Sweden

22 Membership of a corporate group

The annual financial statements of Siemens Bank are included in the consolidated financial statements of Siemens AG The consolidated financial statements of Siemens AG are submitted for publication in the electronic German Federal Gazette Pursuant to section 285 No of 21 HGB in the year under review Siemens Bank did not enter into any transactions with related parties on terms that were other than on an armrsquos length basis

The consolidated financial statements of Siemens AG include disclosures on the total fees paid to the independent auditors pursuant to section 285 No 17 of HGB

Munich December 16 2011

The Management Board

Roland Chalons-Browne Dr Ingeborg Hampl Dr Peter Rathgeb


55

Siemens Bank GmbH

We have issued the following opinion on the financial statements and management report

ldquoWe have audited the annual financial statements comprising the balance sheet the income statement and the notes to the financial statements together with the book-keeping system and the management report of Siemens Bank GmbH Munich for the fiscal year from October 1 2010 to September 30 2011 The maintenance of the books and records and the preparation of the annual financial statements and man-agement report in accordance with German commercial law are the responsibility of the Companyrsquos management Our responsibility is to express an opinion on the annual financial statements together with the bookkeeping system and the management report based on our audit

We conducted our audit of the annual financial statements in accordance with Sec 317 HGB [ldquoHandelsgesetzbuchrdquo ldquoGerman Commercial Coderdquo] and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftspruumlfer [Institute of Public Auditors in Germany] (IDW) Those standards require that we plan and perform the audit such that misstatements materially affect-ing the presentation of the net assets financial position and results of operations in the annual financial statements in accordance with [German] principles of proper accounting and in the management report are detected with reasonable assurance Knowledge of the business activities and the economic and legal environment of the Company and expectations as to possible misstatements are taken into account in the determination of audit procedures The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the books and records the annual financial statements and the management report are examined primarily on a test basis within the framework of the audit The audit includes assess-ing the accounting principles used and significant estimates made by management as well as evaluating the overall presentation of the annual financial statements and management report We believe that our audit provides a reasonable basis for our opinion

Our audit has not led to any reservations

In our opinion based on the findings of our audit the annual financial statements comply with the legal requirements and give a true and fair view of the net assets financial position and results of operations of the Company in accordance with [Ger-man] principles of proper accounting The management report is consistent with the annual financial statements and as a whole provides a suitable view of the Companyrsquos position and suitably presents the opportunities and risks of future developmentrdquo

Munich February 13 2012

Ernst amp Young GmbH

Wirtschaftspruumlfungsgesellschaft

Barth Adam Wirtschaftspruumlfer Wirtschaftspruumlfer [German Public Auditor] [German Public Auditor]

Audit OpinionAudit Opinion (translation of the German original)

Publisher

Siemens Bank GmbH80200 Munich Germanyinfosiemens-banksiemenscomPhone +49 89 636-25311

Phone +49 89 636-30049 marketingsfssiemenscom

Order-No L1-Z797

wwwsiemenscomfinance

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

All products and solutions offered in this brochure are subject to the legal require-ments of the respective country

copy 2012 Siemens Bank GmbH

This version of the annual financial state-ments and the management report of Siemens Bank GmbH Munich has been prepared for the convenience of English-speaking readers and is a translation of the German original For purposes of interpretation the German text shall be authoritative and final

Siemens Bank GmbH

Annual Report Editorial

Dear Reader

Welcome to the 1st edition of the Siemens Bank Annual Report We are glad to state that the initial months of our bank-ing activities were everything we expected ndash eventful exciting and challenging They document that our decision to apply for the banking license in 2010 was well founded and we can already see the valuable benefits of providing banking solutions as part of Siemens Financial Serviceslsquo overall business mix

In a difficult global economic environment financial solutions have become increasingly important for Siemens and Siemenslsquo customers Our goal is to support the growth of Siemensrsquo four operating sectors ndash Energy Healthcare Industry and Infrastructure amp Cities ndash by providing a comprehensive range of financial solutions With Siemens Bank being able to provide banking solutions such as project financings corporate loans guarantees and other forms of debt financing from Germany we have clearly strengthened our capabilities in the entire spectrum of sales financing In addition to corporate customers public authorities and project companies have also become important By establishing Siemens Bank we were also able to provide deposit banking services to Siemensrsquo Group Companies and select Institutional third parties as well as services related to risk management and risk controlling for both internal and external customers

Based on a high demand from customers we were able to realize new business opportunities quickly For example Siemens Bank and Siemens Sector Energy played a leading role in the creation of the first project-financed offshore wind park in Germany ndash bdquoMeerwindldquo which recently received the European Offshore Wind Deal of the Year Award presented by Euromoney Project Finance Magazine Our customer for this financing is the project developer WindMW GmbH

In mid-October the Energy Sector helped by Siemens Bank financing constructed and established the ldquoLes Meesrdquo solar farm in the south of France The project included the installation of a total of six turnkey photovoltaic (PV) power plants including long-term operation and maintenance agreements ldquoLes Meesrdquo will generate a combined peak output of 31 megawatts (MWp) and power approximately 12000 French households with clean electricity Our main customer for this financing is the project developer Eco Delta SA

With an accelerated pace we also put in place many new structures and processes to drive and govern our bank-ing business for the long term As an example we recently completed the notification process with Bundesanstalt fuumlr Finanzdienstleistungsaufsicht (BaFin) in Germany and Financial Services Authority (FSA) of the UK to set up a UK Branch The UK branch based in London commenced operations in April 2012 and supports both credit and guarantee business focusing mainly on large Siemens-related transactions particularly those that require close interaction with the international banking community

The developments over the past 12 months as well as current indications give us a good insight into the intermediate future Corporate and project finance will remain our key activity and Siemens Bank with its industrial heritage is well placed to realize current and future opportunities in support of Siemensrsquo growth ambitions

Siemens Bank GmbH

Managing Board

9

12

29

30

34

36

38

55

Siemens Bank GmbH

Annual Report

Contents

Management report


2 Risk report

3 Other information

4 Outlook


Income statement

Balance sheet

Notes

Audit Opinion


7


8 9

Siemens Bank GmbH















10 11

Siemens Bank GmbH

Management report











Q1 2011 Q2 2011 Q3 2011 Q4 2011

Q1 2011 Q2 2011 Q3 2011 Q4 2011

1000900800700600500400300200100

0

500045004000350030002500200015001000

5000



Earnings



2011






16












12 13

Siemens Bank GmbH

Management report



211 Objective















Committees






14 15

Siemens Bank GmbH

Management report


Risk reporting








Objective


Responsibilities



Procedures













16 17

Siemens Bank GmbH

Management report


Capital adequacy





(euro million) 2011

Tier 1 capital 2500







Market risk


Operational risk


(euro million) 2011













Stress testing




(euro million) 2011

Risk-taking

potential

Risk capital

require-

ment













18 19

Siemens Bank GmbH

Management report





(euro million) 2011


Paid-in capital 50




00


00



2499





(euro million) 2011




Institutions 58

Corporates 688

Other 05



2 Market risk


Currency risk 02


3 Operational risk










Credit risk


Counterparty risk


Issuer risk






20 21

Siemens Bank GmbH

Management report







Expected loss


Unexpected loss


Country risk



22 23

Siemens Bank GmbH

Management report

Backtesting


Pricing




Stress testing





Types of collateral














24 25

Siemens Bank GmbH

Management report



(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243





(euro million) 2011

Germany 1393




Asia 682

Americas 237

Total 9243



24 Liquidity risk



241 Risk management





Refinancing risk


Limit structure


242 Modeling

Modeling



26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






9

12

29

30

34

36

38

55

Siemens Bank GmbH

Annual Report

Contents

Management report


2 Risk report

3 Other information

4 Outlook


Income statement

Balance sheet

Notes

Audit Opinion


7


8 9

Siemens Bank GmbH















10 11

Siemens Bank GmbH

Management report











Q1 2011 Q2 2011 Q3 2011 Q4 2011

Q1 2011 Q2 2011 Q3 2011 Q4 2011

1000900800700600500400300200100

0

500045004000350030002500200015001000

5000



Earnings



2011






16












12 13

Siemens Bank GmbH

Management report



211 Objective















Committees






14 15

Siemens Bank GmbH

Management report


Risk reporting








Objective


Responsibilities



Procedures













16 17

Siemens Bank GmbH

Management report


Capital adequacy





(euro million) 2011

Tier 1 capital 2500







Market risk


Operational risk


(euro million) 2011













Stress testing




(euro million) 2011

Risk-taking

potential

Risk capital

require-

ment













18 19

Siemens Bank GmbH

Management report





(euro million) 2011


Paid-in capital 50




00


00



2499





(euro million) 2011




Institutions 58

Corporates 688

Other 05



2 Market risk


Currency risk 02


3 Operational risk










Credit risk


Counterparty risk


Issuer risk






20 21

Siemens Bank GmbH

Management report







Expected loss


Unexpected loss


Country risk



22 23

Siemens Bank GmbH

Management report

Backtesting


Pricing




Stress testing





Types of collateral














24 25

Siemens Bank GmbH

Management report



(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243





(euro million) 2011

Germany 1393




Asia 682

Americas 237

Total 9243



24 Liquidity risk



241 Risk management





Refinancing risk


Limit structure


242 Modeling

Modeling



26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






7


8 9

Siemens Bank GmbH















10 11

Siemens Bank GmbH

Management report











Q1 2011 Q2 2011 Q3 2011 Q4 2011

Q1 2011 Q2 2011 Q3 2011 Q4 2011

1000900800700600500400300200100

0

500045004000350030002500200015001000

5000



Earnings



2011






16












12 13

Siemens Bank GmbH

Management report



211 Objective















Committees






14 15

Siemens Bank GmbH

Management report


Risk reporting








Objective


Responsibilities



Procedures













16 17

Siemens Bank GmbH

Management report


Capital adequacy





(euro million) 2011

Tier 1 capital 2500







Market risk


Operational risk


(euro million) 2011













Stress testing




(euro million) 2011

Risk-taking

potential

Risk capital

require-

ment













18 19

Siemens Bank GmbH

Management report





(euro million) 2011


Paid-in capital 50




00


00



2499





(euro million) 2011




Institutions 58

Corporates 688

Other 05



2 Market risk


Currency risk 02


3 Operational risk










Credit risk


Counterparty risk


Issuer risk






20 21

Siemens Bank GmbH

Management report







Expected loss


Unexpected loss


Country risk



22 23

Siemens Bank GmbH

Management report

Backtesting


Pricing




Stress testing





Types of collateral














24 25

Siemens Bank GmbH

Management report



(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243





(euro million) 2011

Germany 1393




Asia 682

Americas 237

Total 9243



24 Liquidity risk



241 Risk management





Refinancing risk


Limit structure


242 Modeling

Modeling



26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






8 9

Siemens Bank GmbH















10 11

Siemens Bank GmbH

Management report











Q1 2011 Q2 2011 Q3 2011 Q4 2011

Q1 2011 Q2 2011 Q3 2011 Q4 2011

1000900800700600500400300200100

0

500045004000350030002500200015001000

5000



Earnings



2011






16












12 13

Siemens Bank GmbH

Management report



211 Objective















Committees






14 15

Siemens Bank GmbH

Management report


Risk reporting








Objective


Responsibilities



Procedures













16 17

Siemens Bank GmbH

Management report


Capital adequacy





(euro million) 2011

Tier 1 capital 2500







Market risk


Operational risk


(euro million) 2011













Stress testing




(euro million) 2011

Risk-taking

potential

Risk capital

require-

ment













18 19

Siemens Bank GmbH

Management report





(euro million) 2011


Paid-in capital 50




00


00



2499





(euro million) 2011




Institutions 58

Corporates 688

Other 05



2 Market risk


Currency risk 02


3 Operational risk










Credit risk


Counterparty risk


Issuer risk






20 21

Siemens Bank GmbH

Management report







Expected loss


Unexpected loss


Country risk



22 23

Siemens Bank GmbH

Management report

Backtesting


Pricing




Stress testing





Types of collateral














24 25

Siemens Bank GmbH

Management report



(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243





(euro million) 2011

Germany 1393




Asia 682

Americas 237

Total 9243



24 Liquidity risk



241 Risk management





Refinancing risk


Limit structure


242 Modeling

Modeling



26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






10 11

Siemens Bank GmbH

Management report











Q1 2011 Q2 2011 Q3 2011 Q4 2011

Q1 2011 Q2 2011 Q3 2011 Q4 2011

1000900800700600500400300200100

0

500045004000350030002500200015001000

5000



Earnings



2011






16












12 13

Siemens Bank GmbH

Management report



211 Objective















Committees






14 15

Siemens Bank GmbH

Management report


Risk reporting








Objective


Responsibilities



Procedures













16 17

Siemens Bank GmbH

Management report


Capital adequacy





(euro million) 2011

Tier 1 capital 2500







Market risk


Operational risk


(euro million) 2011













Stress testing




(euro million) 2011

Risk-taking

potential

Risk capital

require-

ment













18 19

Siemens Bank GmbH

Management report





(euro million) 2011


Paid-in capital 50




00


00



2499





(euro million) 2011




Institutions 58

Corporates 688

Other 05



2 Market risk


Currency risk 02


3 Operational risk










Credit risk


Counterparty risk


Issuer risk






20 21

Siemens Bank GmbH

Management report







Expected loss


Unexpected loss


Country risk



22 23

Siemens Bank GmbH

Management report

Backtesting


Pricing




Stress testing





Types of collateral














24 25

Siemens Bank GmbH

Management report



(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243





(euro million) 2011

Germany 1393




Asia 682

Americas 237

Total 9243



24 Liquidity risk



241 Risk management





Refinancing risk


Limit structure


242 Modeling

Modeling



26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






12 13

Siemens Bank GmbH

Management report



211 Objective















Committees






14 15

Siemens Bank GmbH

Management report


Risk reporting








Objective


Responsibilities



Procedures













16 17

Siemens Bank GmbH

Management report


Capital adequacy





(euro million) 2011

Tier 1 capital 2500







Market risk


Operational risk


(euro million) 2011













Stress testing




(euro million) 2011

Risk-taking

potential

Risk capital

require-

ment













18 19

Siemens Bank GmbH

Management report





(euro million) 2011


Paid-in capital 50




00


00



2499





(euro million) 2011




Institutions 58

Corporates 688

Other 05



2 Market risk


Currency risk 02


3 Operational risk










Credit risk


Counterparty risk


Issuer risk






20 21

Siemens Bank GmbH

Management report







Expected loss


Unexpected loss


Country risk



22 23

Siemens Bank GmbH

Management report

Backtesting


Pricing




Stress testing





Types of collateral














24 25

Siemens Bank GmbH

Management report



(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243





(euro million) 2011

Germany 1393




Asia 682

Americas 237

Total 9243



24 Liquidity risk



241 Risk management





Refinancing risk


Limit structure


242 Modeling

Modeling



26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






14 15

Siemens Bank GmbH

Management report


Risk reporting








Objective


Responsibilities



Procedures













16 17

Siemens Bank GmbH

Management report


Capital adequacy





(euro million) 2011

Tier 1 capital 2500







Market risk


Operational risk


(euro million) 2011













Stress testing




(euro million) 2011

Risk-taking

potential

Risk capital

require-

ment













18 19

Siemens Bank GmbH

Management report





(euro million) 2011


Paid-in capital 50




00


00



2499





(euro million) 2011




Institutions 58

Corporates 688

Other 05



2 Market risk


Currency risk 02


3 Operational risk










Credit risk


Counterparty risk


Issuer risk






20 21

Siemens Bank GmbH

Management report







Expected loss


Unexpected loss


Country risk



22 23

Siemens Bank GmbH

Management report

Backtesting


Pricing




Stress testing





Types of collateral














24 25

Siemens Bank GmbH

Management report



(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243





(euro million) 2011

Germany 1393




Asia 682

Americas 237

Total 9243



24 Liquidity risk



241 Risk management





Refinancing risk


Limit structure


242 Modeling

Modeling



26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






16 17

Siemens Bank GmbH

Management report


Capital adequacy





(euro million) 2011

Tier 1 capital 2500







Market risk


Operational risk


(euro million) 2011













Stress testing




(euro million) 2011

Risk-taking

potential

Risk capital

require-

ment













18 19

Siemens Bank GmbH

Management report





(euro million) 2011


Paid-in capital 50




00


00



2499





(euro million) 2011




Institutions 58

Corporates 688

Other 05



2 Market risk


Currency risk 02


3 Operational risk










Credit risk


Counterparty risk


Issuer risk






20 21

Siemens Bank GmbH

Management report







Expected loss


Unexpected loss


Country risk



22 23

Siemens Bank GmbH

Management report

Backtesting


Pricing




Stress testing





Types of collateral














24 25

Siemens Bank GmbH

Management report



(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243





(euro million) 2011

Germany 1393




Asia 682

Americas 237

Total 9243



24 Liquidity risk



241 Risk management





Refinancing risk


Limit structure


242 Modeling

Modeling



26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






18 19

Siemens Bank GmbH

Management report





(euro million) 2011


Paid-in capital 50




00


00



2499





(euro million) 2011




Institutions 58

Corporates 688

Other 05



2 Market risk


Currency risk 02


3 Operational risk










Credit risk


Counterparty risk


Issuer risk






20 21

Siemens Bank GmbH

Management report







Expected loss


Unexpected loss


Country risk



22 23

Siemens Bank GmbH

Management report

Backtesting


Pricing




Stress testing





Types of collateral














24 25

Siemens Bank GmbH

Management report



(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243





(euro million) 2011

Germany 1393




Asia 682

Americas 237

Total 9243



24 Liquidity risk



241 Risk management





Refinancing risk


Limit structure


242 Modeling

Modeling



26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






20 21

Siemens Bank GmbH

Management report







Expected loss


Unexpected loss


Country risk



22 23

Siemens Bank GmbH

Management report

Backtesting


Pricing




Stress testing





Types of collateral














24 25

Siemens Bank GmbH

Management report



(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243





(euro million) 2011

Germany 1393




Asia 682

Americas 237

Total 9243



24 Liquidity risk



241 Risk management





Refinancing risk


Limit structure


242 Modeling

Modeling



26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






22 23

Siemens Bank GmbH

Management report

Backtesting


Pricing




Stress testing





Types of collateral














24 25

Siemens Bank GmbH

Management report



(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243





(euro million) 2011

Germany 1393




Asia 682

Americas 237

Total 9243



24 Liquidity risk



241 Risk management





Refinancing risk


Limit structure


242 Modeling

Modeling



26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






24 25

Siemens Bank GmbH

Management report



(euro million)

Rating 2011

1 00

2+ 00

2 00

2- 500

3+ 00

3 00

3- 1210

4+ 526

4- 1603

5+ 3249

5- 936

6+ 1126

6- 00

7+ 00

7- 00

8+ 00

8- 93

9 00

10 00

Total 9243





(euro million) 2011

Germany 1393




Asia 682

Americas 237

Total 9243



24 Liquidity risk



241 Risk management





Refinancing risk


Limit structure


242 Modeling

Modeling



26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






26 27

Siemens Bank GmbH

Management report

Liquidity buffer


Stress testing


Backtesting







25 Market risk




251 Risk management




252 Modeling

Risk model


Stress testing


Backtesting





28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






28 29

Siemens Bank GmbH

Management report

26 Operational risk


























30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






30 31

Siemens Bank GmbH

Management report









32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






32 33


3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






3534

Siemens Bank GmbH



Note 2011 2010




1431694496









-163002052-1183237302

000



-1965484122 -5486409


-682409 000



-112360028 000






5 -45290497 000





3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






3736

Siemens Bank GmbH













5 Other assets 8 8388716 88076


Total assets 16 540797748964 1010003137








4 Provisions 13 14 558139571 4900000



5 Equity 15 25000000000 1004413591









38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






38 39


4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






4140

Siemens Bank GmbH











Accounting policies










4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






4342

Siemens Bank GmbH


Liabilities















4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






4544

Siemens Bank GmbH





() 2011 2010

Germany 62 0

Elsewhere 38 0



(euro) 2011 2010



Total 1375343975 000




4 Taxes on income







4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






4746

Siemens Bank GmbH




(euro) 2011 2010







(euro) 2011 2010





more than 5 years 22906392584 000


8 Other assets



(euro) Cost






2011 2010





(euro) 2011 2010









(euro) 2011 2010





more than 5 years 10301826325 000


4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






4948

Siemens Bank GmbH














14 Other provisions








(euro) 2011 2010







5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






5150

Siemens Bank GmbH


15 Equity



Equity




-5586409 000 5586409 000

1004413591 23990000000 5586409 25000000000




(euro) 2011 2010



Other disclosures


(euro)

Nominal




FX Swaps 0 640619699 0 640619699 0

(euro)

Fair values

Positive Negative

2011 2010 2011 2010


FX Swaps 15204643 0 0 0






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






5352

Siemens Bank GmbH


19 Employees




(euro)



814697896























55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






55

Siemens Bank GmbH











Publisher



Order-No L1-Z797






Publisher



Order-No L1-Z797






Documents

Siemens Bank - Annual report 2011... · 2020. 8. 1. · Siemens Bank GmbH Annual Report Editorial Dear Reader, Welcome to the 1st edition of the Siemens Bank Annual Report. We are