Siemens 2005 Annual Report Download - page 66
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66
In fiscal 2005, we discussed acquisitions with a total value of over €3 billion,
approving those transactions for which – due to their size – our consent was required.
These portfolio-strengthening moves were in the areas of communications technolo-
gy, industrial systems, power generation and distribution, and medical engineering.
Withdrawal from the mobile phone business was a major item on our agenda.
We discussed the difficult situation in this business at several regular meetings and,
in a telephone conference on June 6, 2005, decided to accept a Managing Board pro-
posal to sell our mobile phone unit to Taiwan’s BenQ. The Managing Board had sought
a solution that would offer advantages for our employees and locations as well as for
our customers and investors. We are convinced that BenQ is the right partner from all
these perspectives.
At our April meeting, we received a detailed report on the structural changes tak-
ing place in the markets for telecommunications equipment. These markets are expe-
riencing a major technological transformation. In addition, telecoms operators and
their suppliers are consolidating their activities. We will concern ourselves very inten-
sively with these developments in the future.
We were also involved in major decisions to restructure our loss-making company
Siemens Business Services GmbH & Co. OHG (SBS) and to prune our business portfolio
in the area of logistics systems:
■The Managing Board explained to us that SBS would require a two-pronged
approach. On the one hand, it will be necessary to eliminate operating losses
incurred primarily in product-related low-end services. The key steps here – the
sale of selected activities, together with rationalization measures – have already
been initiated. The second prong is a strategic reorientation. Our deliberations in
this regard have not yet been completed.
■The Logistics and Assembly Systems Group (L&A) was dissolved at the beginning
of fiscal 2006. Its three successful divisions – Postal Automation, Airport Logistics
and Electronic Assembly Systems – have been integrated into our Industrial Solu-
tions and Services Group and our Automation and Drives Group. L&A’s Industry
and Distribution Logistics Division, including its material handling products busi-
ness, has been placed in a separate company. This business will operate on the
market in a new constellation – possibly involving partners.