Siemens AG – Annual report – 30 September 2025
Industry: manufacturing
NOTE 25 Financial risk management (extract)
Liquidity risk
Liquidity risk results from the Company’s inability to meet its financial liabilities. Siemens follows a deliberated financing policy that is aimed towards a balanced financing portfolio, a diversified maturity profile and a comfortable liquidity cushion. Siemens mitigates liquidity risk by the implementation of effective working capital and cash management, arranged credit facilities with highly rated financial institutions, via a debt issuance program and via a global multi-currency commercial paper program. Liquidity risk may also be mitigated by the Siemens Bank GmbH, which increases the flexibility of depositing cash or refinancing.
In addition, Siemens constantly monitors funding options available in the capital markets, as well as trends in the availability and costs of such funding, with a view to maintaining financial flexibility and limiting repayment risks.
The following table reflects our contractually fixed pay-offs for settlement, repayments and interest. The disclosed expected undiscounted net cash outflows from derivative financial liabilities are determined based on each particular settlement date of an instrument and based on the earliest date on which Siemens could be required to pay. Cash outflows for financial liabilities (including interest) without fixed amount or timing are based on the conditions existing at September 30, 2025.
¹ Based on the maximum amounts Siemens could be required to settle in the event of default by the primary debtor.
² A considerable portion result from asset-based lending transactions meaning that the respective loans can only be drawn after sufficient collateral has been provided by the borrower.
As of September 30, 2025 and 2024, trade payables amounting to €1,336 million and €1,516 million, respectively, were subject to supplier finance arrangements. Under these arrangements suppliers can sell their receivables from participating Siemens companies to a financial service provider before they fall due. The Siemens companies pay the invoice amount to the financial service provider on the respective due date. The participation of suppliers in supplier finance arrangements is independent of the corresponding purchasing contracts and conditions negotiated with Siemens.
Participating suppliers have already received payments for trade payables amounting to €1,121 million and €1,292 million, as of September 30, 2025 and 2024, respectively.
Payment terms for trade payables in connection with supplier financing agreements were mainly between 50 and 180 days, for comparable payables not part of such agreements between 30 and 120 days.
Accounts examples 