Dear reader, The difficult global economic environment has affected our markets, leading to painful cuts in parts of our company and making a reduction in our headcount necessary. At times like these, questions of corporate responsibility tend to be raised with greater frequency than usual, and the answers we give are viewed more critically. Even so, there are a number of constants in our corporate culture that are timeless. First, we remain true to our principle of not choosing short-term courses of action that could cost us our future. This is why, in spite of the hardships involved, we are unable to maintain surplus capacity when all reliable assessments of future market growth indicate no promise of a return to high demand. Second, future-focused action calls for continuous investment in research and development, in new products and solutions, and in im- proved processes – one issue that we address in detail in this report. Our company generates more than 70 percent of its sales with products that are less than five years old. If we are to continue to be successful in our markets five years from now and beyond, it is essential that we maintain a high level of research and development activity. To do less would be irresponsible as it could undermine the basis for our compa- ny’s success and put jobs at risk. Third, crucial to our perception of ourselves as a company is our ability to balance business success and benefits for society – benefits from the contributions made by our technologies and innovations to- ward meeting the world’s challenges; benefits through education, train- ing, knowledge transfer, and partnerships with schools and universities in many of the world’s countries; and benefits through our citizenship activities in the social and cultural spheres. This is what this report is about. At the end of the day, it is also an invitation to you, the reader, to engage in a dialogue with us. Dr. Heinrich v. Pierer President and Chief Executive Officer, Siemens AG foreword 5 It is our principle not to choose short-term courses of action that could cost us our future.