SIEMENS HEALTHCARE LIMITED

The terms are assigned by the Business units on a case by case basis:- Payment terms usage is as follows 3rd Party payment terms 60 days 50%,30 days 25%,90 days 17%, 45 days 2%, 7 days 1%,0 days 1%,40 days 1%, 120 days 1%, 10 days 1% and remainder are terms with less than 1% occurrence which also includes 180 days.
Out of total data population, 55% transactional data was relating to Inter-Company which was excluded for this reporting. Inter-Company invoice gets cleared automatically within 1 to 2 days in the month following the receipt of the invoice via Siemens cash pooling facility which is only available to Siemens entities. Please note Intercompany clearing terms are available to Siemens companies only and payment method for such terms results in clearing of
such transactions without any transmission of money external to Siemens cash pool.

During the period changes were made to payment terms for specific suppliers after consultation with suppliers. No payments terms were used where early settlement discounts were applied.
Payment statistics improved from the previous report despite payment terms remaining consistent (see above).
The business settles all undisputed invoices within the payment terms if invoices are sent on time by the supplier.
The business is working with suppliers to make further improvements such as sending invoices timely.
The data presented excludes instances where the invoice has been sent late, therefore based on original invoice date, when received by the business it's instantly overdue and is paid outside of the agreed period. In these circumstances, the business aims to settle invoices without utilising the agreed period from invoice receipt date.
Percentage of payments outside the agreed period is in line with previous reporting and large number of invoices were under query with the vendors. Of the 8% (£1,020k), 51% (£522k) were paid within 30 days, 13% (£135k) were paid between 30-60 days and 19% (£197k) were paid over 60 days and 16% (£165k) were not paid yet.

1) Central Accounts Payable (AP) team for payment enquiries, contact points via phone/e-mail/supplier portal.
Relevant details are on Purchase Orders. A) Tel: 0845 602 6873 b) E-mail apsupport-gbandi.in@siemens.com
2) AP liaise with supplier to obtain and process missing invoices
a) Check existing systems (scan provider/e-invoice provider/invoice process queue to see if invoice already in
query and/or returned to suppler)
3) AP liaise with suppliers to confirm payment details (past and upcoming)
4) AP liaise with approvers to release overdue invoices for payment
5) Special team deals with ‘final demand’ cases and legal notices