Siemens writes new chapter: powerful ecosystem instead of conglomerate

Siemens has completed its structural realignment and thus successfully executed a key part of its Vision 2020+ strategy concept. This morning’s listing in the Prime Standard segment of the Frankfurt Stock Exchange completed the quotation of Siemens Energy as a leader in the transmission and generation of electrical power.

This step begins a new chapter in the company’s history. The independent Siemens companies Siemens AG, Siemens Healthineers AG and Siemens Energy AG will work together within an ecosystem of common interests. In each case, however, they will focus on the priorities and characteristics of their specific businesses and industries. With some 240,000 employees, Siemens AG will primarily concentrate on technologies that are driving advances in the digital transformation of industry, in smart infrastructure and in sustainable transportation.

“The listing of Siemens Energy means that we’ve successfully reached a key milestone in Siemens’ structural realignment,” said Joe Kaeser, President and CEO of Siemens AG. “With three powerful, focused and independent companies, we have an outstanding setup for the future. The separately listed companies will be in a significantly better position to tap the individual businesses’ value-creating potential than would be possible in a conglomerate. This is another way in which we’re creating prospects for sustainable, long-term expansion of each of the businesses. After just a short time, Siemens Healthineers has provided an impressive example of what this change enables in terms of value creation and transformational alignments.”

“Once again, our entire team has proven that it can also master challenges of historic magnitude with great decisiveness and flexibility,” added Dr. Roland Busch, Deputy CEO – and future CEO – of Siemens AG. “We’ve largely completed the current phase of our company’s structural development. Now, we’ll focus sharply on its digital transformation. Over the next few years, we intend to accelerate our profitable growth for the long term and concentrate on technologies that have a positive impact and create genuine added value – for our customers in the industrial and commercial sectors and for society.”

“The spin-off will create an independent and agile energy champion with a strong brand and Siemens’ engineering DNA,” said Prof. Dr. Ralf P. Thomas, CFO of Siemens AG and member of the Supervisory Board of Siemens Energy AG. “In the future, Siemens Energy will act independently and have a strong financial basis. At the same time, Siemens AG will become more transparent and leaner with a clear focus on the core business of its industrial units. We’re all the more convinced that this listing will create long-term value for the shareholders.”

In an initial step, Siemens AG has spun off 55 percent of Siemens Energy AG to Siemens’ shareholders and thereby made the corresponding number of shares available for free-float ownership, a further 9.9 percent were transferred to Siemens Pension-Trust e.V. Siemens AG intends to further reduce its equity stake in Siemens Energy significantly within 12 to 18 months.

As a strong, focused company with a global setup, Siemens Energy will be able to use of its resources more efficiently. The independent listing creates additional transparency and individual accountability. More than almost any other company, Siemens Energy covers substantial parts of the energy value chain, including the service business. As a result, the company can adapt flexibly to the market environment, which is being transformed in the course of the energy transition. Its independence is to be accompanied by further improvement in profitability.

The core element of Vision 2020+ was giving Siemens’ individual businesses significantly more entrepreneurial independence and responsibility under the strong, shared “Siemens” brand in order to sharpen their focus on their individual markets. Siemens’ healthcare technology business has been listed on the stock exchange since March 2018 as the separately managed company Siemens Healthineers. In early August 2020, Siemens Healthineers announced its planned acquisition of Varian, a world-leading company in the field of cancer care. This move underscores the strategic and transformational power of Vision 2020+.

Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 170 years. Active around the world, the company focuses on intelligent infrastructure for buildings and distributed energy systems and on automation and digitalization in the process and manufacturing industries. Siemens brings together the digital and physical worlds to benefit customers and society. Through Mobility, a leading supplier of intelligent mobility solutions for rail and road transport, Siemens is helping to shape the world market for passenger and freight services. Via its majority stake in the publicly listed company Siemens Healthineers, Siemens is also a world-leading supplier of medical technology and digital health services. In addition, Siemens holds a minority stake in Siemens Energy, a global leader in the transmission and generation of electrical power that has been listed on the stock exchange since September 28, 2020.

In fiscal 2019, which ended on September 30, 2019, the Siemens Group generated revenue of €58.5 billion and net income of €5.6 billion. As of September 30, 2019, the company had around 295,000 employees worldwide on the basis of continuing operations. Further information is available on the Internet at www.siemens.com.

Source: Siemens news