Businessweek

derivative financial instruments in transactions with external financial institutions to mitigate such exposures. Financing Services & Investment Management This business unit consists of receivables management and investment management. It engages in the process of monitoring and warehousing short-term trade accounts receivable. The investment management function provides investment management services relating to pension assets to the company, as well as to external institutional clients and management of mutual funds to the general public. This business unit operates its investment management business through its company, Siemens Kapitalanlagegesellschaft mbH, Germany. Insurance This business unit acts as an insurance broker for the company and external customers, providing both industrial insurance and private finance solutions. In the area of industrial insurance solutions, this business unit supports the company and non-affiliated companies in all insurance-related matters, including claims management, as well as risk transfer to insurance and financial markets. It also acts as broker of selected company-financed insurances for employees. In the area of private finance solutions, this business unit offers various products in the areas of insurance, retirement planning, and residential construction financing for staff at the company and non-affiliated companies. Through RISICOM Rückversicherungs AG, Financial Services provides reinsurance solutions as an integral part of its risk financing program. Venture Capital This business segment identifies and finances young companies worldwide during their start-up phase. Venture Capital helps the company’s sectors to access new technological solutions and tap new markets. In addition, Venture Capital supports the Siemens Pension Fund in Germany to structure its private equity portfolio, provides private equity advisory services and manages a venture capital fund of funds. In its transactions with the company and third parties, Financial Services acts with banking industry standards in the international financial markets that are both applicable and mandatory for these transactions. The Siemens Bank GmbH is granted a license by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht—BaFin) to engage in banking business. In particular, the license covers engaging in loan, guarantee business, and deposit taking. Siemens Bank GmbH is established to support the operational businesses of the company’s sectors by providing financing solutions and the license enables the bank to gain access to the deposit and refinancing facilities of the European Central Bank. In certain cases, Financial Services uses financial intermediaries for business origination, primarily in secondary markets. Majority of Financial Services’ services are geared towards Europe and North America. Financial Services also intends to expand its on-balance sheet financing business in China, Russia, and India, to support the company’s regional companies and clusters with financial services. Competition Financial Services’ international competitors include BNP Paribas Equipment Finance, De Lage Landen, General Electric Commercial Finance, Macquarie, and Société Générale Equipment Finance. Discontinued Operations As of September 30, 2012, the company decided to divest OSRAM AG, its solar business and the business activities included in the Industry sector’s Industry Automation division. Subsequent to the year ended September 30, 2012, the company decided to dispose its business of mechanical, biological, and chemical treatment and processing of water included in the Industry sector. Subsequent to the year ended September 30, 2012, the company decided to divest its airport logistics business consisted of cargo tracking and baggage handling, and its postal automation business consisted of letter and parcel sorting included in the Infrastructure & Cities sector. In 2012, the company closed the sale of its 50% stake in ELIN GmbH & Co. KG, Austria, a provider of technical building equipment and installation services to the Ortner Grupp