Siemens is setting its future course with Vision 2020 and now Vision 2020+. The milestones below show how the company is delivering on its strategic goals.
Vision 2020 Overall
Siemens is setting the course for long-term value creation through accelerated growth and stronger profitability with a simplified and leaner company structure. The main aim of the Vision 2020+ company strategy is to give Siemens’ individual businesses significantly more entrepreneurial freedom under the strong Siemens brand. Plans also call for strengthening the company’s growth portfolio through investments in new growth fields such as IoT integration services, as well as the concentrated expansion of industrial digitalization.
Siemens and Alibaba Cloud, the cloud computing arm of Alibaba Group, sign a Memorandum of Understanding to partner to foster the industrial Internet of Things (IoT) in China. Siemens MindSphere is also to be deployed and operated on Alibaba Cloud’s infrastructure for China Mainland market.
Siemens and State Power Investment Corporation (SPIC) of China enter into a Memorandum of Understanding (MoU) to further confirm intention of technology collaboration in the field of heavy-duty gas turbines. Under the MoU, Siemens intends to support SPIC to conduct research and development for heavy-duty gas turbines and provide training and technical consultation for SPIC.
Siemens Building Technologies Division is acquiring Enlighted Inc., a leading provider of smart IoT (Internet of Things) systems in buildings, headquartered in Silicon Valley. The company is a successful player in the smart building industry, bringing an advanced digital sensory system to market. With the acquisition Siemens is demonstrating its commitment to drive digitalization in the smart building industry.
Siemens Building Technologies is extending its leadership in smart buildings by acquiring Building Robotics Inc., the creator of Comfy®. Comfy is a leading digital workplace app, creating more personalized and responsive workplaces while providing analytics for efficient building operations.
Siemens enters into more than ten agreements with Chinese partners in support and exploration of opportunities from the Belt and Road Initiative (BRI). More than 1,000 leaders and executive representatives from governments, enterprises, investors, financing institutions and think tanks gathered at the first Belt and Road International Summit held by Siemens in Beijing.
Siemens and the Scottish energy company SSE plc announce that they will collaborate to build the highly efficient gas-fired power station Keadby 2 in Lincolnshire, UK. Siemens will provide a full turnkey solution and long-term services for the power plant, which will include the world’s first deployment of the 50 Hertz version of its SGT-9000HL gas turbine.
Siemens is acquiring J2 Innovations, a leading software framework provider for building automation and IoT, headquartered near Los Angeles, California. J2 Innovations will be managed as an independent legal entity and wholly-owned subsidiary of Siemens Industry, Inc.
Siemens and Northvolt announce a partnership for the development of best-in-class technology to produce high-quality, green lithium-ion batteries. The partnership, which will be supported by Siemens through an investment of €10 million, also includes the supply of lithium-ion batteries.
Eighty percent of all Siemens employees worldwide are now also Siemens shareholders – in total, around 300,000 of the company’s 386,000 employees. The company had aimed to have about 200,000 employee shareholders by 2020. This target has now already been exceeded by a clear margin.
Siemens holds its Innovation Day 2018 at the Digital Manufacturing and Design Innovation Institute in Chicago, U.S. Siemens successfully demonstrates its approach to taking the Fourth Industrial Revolution from concept to reality to more than 150 attendees, including journalists, industry and financial analysts, and customers.
Siemens and Atos announce the reinforcement of their strategic co-operation, with plans to accelerate their joint business until 2020 through an ambitious joint go-to-market plan and the strengthening of their joint innovation and investment program. The program has been increased by €100 million, totaling €330 million – more than three times the original sum.
Siemens Healthineers is now a publicly listed company on the Frankfurt Stock Exchange.
At the Munich Security Conference, Siemens and eight partners from industry sign the first joint charter for greater cybersecurity. Initiated by Siemens, the Charter of Trust calls for binding rules and standards to build trust in cybersecurity and further advance digitalization.
Siemens is again ranked highly in the “2018 Global 100 Most Sustainable Corporations in the World” index, coming top in the Industrial Conglomerates industry group. This is just one of a number of recognitions for the company’s sustainability efforts, which also include the Dow Jones Sustainability Indices.
Deutsche Bahn AG introduces the ICE 4 into regular service, reaching a further project milestone on schedule. Initially, five trains will operate on the routes between Hamburg and Munich and Hamburg and Stuttgart. Siemens will deliver a total of 119 trains by 2023.
Siemens holds its Innovation Day 2017, exploring the theme “Unlock the potential with digitalization”. Presentations by CEO Joe Kaeser and CTO Roland Busch reveal that Siemens’ Net Promoter Score (NPS) has risen by 36% compared to 2014 and that the company has connected over 1 million devices and systems in the past 12 months.
Siemens is the first company worldwide to set up 20 centers for digital customer applications in the industrial sector. To be close to its customers, the company has distributed its 20 centers across around 50 locations in 17 countries worldwide. Further, during fiscal 2017 revenue with digital technologies grew 20 percent to €5.2 billion.
“Our global team delivered excellent results in fiscal 2017, surpassing even the historic success of last year. Most businesses are stronger than ever and well equipped for the digital age,” says CEO Joe Kaeser.
Forbes Magazine asked 15,000 people from 60 countries to decide on the most highly respected company from its list of the Global 2000 companies. The criteria were trustworthiness and honesty; social commitment; reputation as an employer; and the performance of the company’s products or services. Siemens ranked No. 1 on the list of the Top Regarded Companies worldwide.
Bangkok Expressway and Metro Public Company Limited (BEM) and CH. Karnchang Public Company Limited are working with a consortium of Siemens and ST Electronics (Thailand) Limited to deliver rail technology for the extension of Bangkok’s Blue Line Metro. The scope of Siemens’ delivery includes 35 three-car metro trains, the signaling system, the traction power supply and complete equipment for the depot and workshop.
September 2017 marks the training start for 1,700 apprentices, including those partaking in the International Tech Apprenticeship@Siemens program. Since arriving in Berlin in August, 33 newcomers have adjusted to their new surroundings and visited German classes. They explain why Siemens is so attractive and what their expectations are.
Siemens and Alstom have signed a Memorandum of Understanding to combine Siemens’ mobility business, including its rail traction drives business, with Alstom. The transaction brings together two innovative players of the railway market with unique customer value and operational potential.
Siemens China will lead the company’s global research in autonomous robotics. This is part of Siemens’ innovation strategy to master technology fields that are critical for future success. The company announced the move on Siemens Innovation Day China 2017, which was held in Suzhou.
Around 11,500 young men and women worldwide – of whom more than 9,000 are in Germany – are currently enrolled in training or two-track programs at Siemens, making the industrial company one of the largest providers of such programs.
Siemens will acquire TASS International, a global provider of simulation software, plus engineering and test services aimed primarily at the automotive industry, and focused on autonomous driving, integrated safety, advanced driver assistance systems, and tyre modeling. Based in Helmond, Netherlands, TASS International has developed a rich family of solutions that will add to Siemens’ position as the leading supplier of systems-driven product development.
“Our global team delivered a solid quarter with revenue up eight percent and net income growing by seven percent. Our digital enterprise business impressively underscored its leading position in the market. We are fully on track with Vision 2020 and for another strong year,” said CEO Joe Kaeser.
Siemens has been commissioned by the German state of Hesse to build an overhead contact line for electrified freight transport on a ten-kilometer stretch of autobahn. The line will supply electricity for the electric drive of a hybrid truck. “With the eHighway, we’ve created an economically viable solution for climate-neutral freight transport by road,” says Roland Edel, Chief Technology Officer of the Mobility Division.
Siemens and The AES Corporation announced on July 11, 2017 their agreement to form a new global energy storage technology and services company under the name Fluence.
Siemens has entered into agreements with the Chinese government and Chinese enterprises to continue joint activities for exploring the potential of digitalization and for supporting measures to upgrade and transform China’s industrial sector. The documents were signed in Berlin in the presence of German Chancellor Angela Merkel and Chinese President Xi Jinping.
To address the substantial opportunities in urbanization and industrialization which are taking place rapidly in Asia, Siemens will be setting up a Digitalization Hub in Singapore. The Hub was inaugurated at parallel events in Singapore and at Siemens’ headquarters in Munich.
Agnelli Foundation in Italy has had its historic headquarters in Turin transformed into an advanced Internet of Things (IoT) office building, demonstrating how digitalization is transforming conventional workplaces into the smart workplaces of the future. The former villa of the founder of Fiat is the first office building in the world which adjusts to the needs of its users in real time.
Siemens will work more closely with Uganda and Sudan in the areas of power supply, industry, transportation and healthcare. The African states signed the corresponding Memoranda of Understanding (MoU) at the World Economic Forum 2017 in the South African city of Durban. “Africa's economies are gaining ground and can develop their full potential with the right partner. Siemens wants to support their sustainable development – with solutions and projects in Africa, for Africa. The agreements with our African partners are important steps along this path,” said Joe Kaeser, President and CEO of Siemens AG. “Our goal is to double our order intake in Africa to more than €3 billion by the year 2020.”
“We delivered another strong team performance and continue to outperform the markets. In the second half of the fiscal year, we will focus on duly integrating Mentor Graphics and on a successful start of Siemens Gamesa Renewable Energy, while keeping a close eye on our operational performance. And there is more work to do,” said CEO Joe Kaeser.
Siemens and the Qatar General Water & Electricity Corporation (Kahramaa) signed a contract for the largest order Siemens in Qatar has ever won: Energy Management (EM) will deliver 35 substations to Kahramaa, valued at €790 million. The project supports Qatar’s ambitions to have a reliable power transmission network, which is essential for future major sports events in Qatar.
Siemens and Chromalloy Gas Turbine Corporation have entered a partnership to form a new joint venture called Advanced Airfoil Components. The primary scope of the company will be turbine blade and vane cast components for power generation. Both partners are investing approximately U.S.$130 million in combined value to create a new production facility.
Highlighting the importance of Dubai as a strategic logistics hub between East and West, North and South, Siemens has announced plans to set up its global logistics headquarters including its portfolio for airports, cargo infrastructure and ports in the emirate in the near future. The company expects this development to support its Vision 2020 and related logistics businesses, creating new growth opportunities globally.
At this leading trade fair, Siemens demonstrates how industrial companies of all sizes can benefit from digital transformation. The central focus of the company’s booth is on Siemens’ further extended portfolio for the achievement of end-to-end digitalization, known as the “Digital Enterprise”.
Siemens is planning to acquire HaCon, a company headquartered in Hanover, Germany. “The acquisition of HaCon will enable us to enter a completely new business area that complements our current portfolio, expanding it to include timetable scheduling as well as trip planning by passengers,” said Jochen Eickholt, CEO of Siemens’ Mobility Division. “With this move, we’re rigorously implementing our digitalization strategy and opening up new growth opportunities for our company along our customers’ value chain.”
Siemens continues to be on a successful course with its energy business in Argentina: The company has secured orders to supply a total of four turnkey industrial power plants including service valued at approximately U.S.$570 million to the country.
German Chancellor Angela Merkel and Egyptian President Abdel Fattah El-Sisi symbolically inaugurate the first phase of Siemens’ megaproject in Egypt, which will boost the country’s power generation capacity by 45 percent when finished. Siemens is also partnering with BMZ to support vocational and occupational training in Egypt, with more than 5,500 Egyptians being trained.
Siemens has successfully placed another large U.S.$ bond issue following last year’s U.S.$6 billion transaction and a U.S.$7.75 billion transaction in 2015. It was the company’s fourth bond placement in the U.S. capital market and its second-largest ever. “This successful bond issue enables us to finance our latest acquisition projects at very favorable conditions and to optimize our maturity profile,” said Siemens CFO Ralf P. Thomas.
Through continuous fine adjustment of the fuel valves, artificial intelligence from Corporate Technology is optimizing the combustion process in gas turbines to ensure low emissions and wear. The Power Generation Services Division is using the jointly developed system GT-ACO for the first time in an actual customer application for the largest and most modern stationary Siemens gas turbine.
At the Health IT Conference (HIMSS) 2017 in Orlando, Siemens Healthineers has announced a digital platform for healthcare providers as well as for providers of solutions and services, aimed at covering the entire spectrum of healthcare. The platform is to foster the growth of a digital ecosystem linking healthcare providers and solution providers with one another as well as bringing together their data, applications and services.
Of Siemens’ 351,000 employees worldwide, nearly one in two is also a company shareholder. The number of employees holding Siemens shares increased eight percent to 165,000, compared to 153,000 in the previous year. This year, more than 131,000 employees – or 39 percent of all eligible employees – took part in Siemens’ Share Matching Program, a very high figure compared to similar global share programs.
Siemens is giving its mechanical drives unit (Mechanical Drives, MD) a new setup that will enable the business to operate more efficiently and flexibly in implementing its growth plans in a competitive environment. To achieve greater room to maneuver and intensify its business-specific orientation, the unit is to be managed in the future as a separate company under the Siemens umbrella.
The Aïshti Foundation in Beirut sets new benchmarks. A unique combination of luxury shopping mall and contemporary art gallery, it is a cultural highlight in the Lebanese capital. Building Technologies (BT) takes excellent care of the futuristic building: The Desigo CC building management platform provides fire safety, security and a comfortable room climate.
Siemens will supply five F-class gas turbines, including associated generators and control systems, for the combined cycle power plant in Fadhili, Saudi Arabia. A long-term service agreement for a period of 16 years is also included. The entire order is worth approximately U.S.$400 million. All five turbines will be assembled in the new Siemens plant in Dammam.
Gornergrat Bahn and Siemens Switzerland have jointly developed the world’s first integrated control and information system that operates in a “cloud”. In contrast to standard industry solutions, the system together with its entire IT infrastructure and application software is installed at Siemens and made available as a virtual solution to Gornergrat Bahn.
Siemens has achieved a decisive sales success on the Chinese power station market. For the first time the company will supply an H-class gas turbine to Hong Kong, and this order means it has also won over a long-standing customer of its biggest competitor.
Siemens is developing systematic inspection systems that use autonomous drones and 3D image analysis to monitor pipelines, large industrial facilities, and pylons in high-voltage electrical distribution systems.
Austrian Railways (ÖBB) has signed a framework contract with Siemens for the delivery of up to 200 Vectron locomotives. Under the contract, up to 100 alternating current (AC) locomotives, 50 AC locomotives with diesel power modules, and 50 multisystem (MS) locomotives can be called up. A firm order for 30 MS locomotives was placed at the signing.
Siemens wants to further strengthen its position as a digital company and achieve double-digit growth in software, digital services and cloud platforms every year through 2020. In fiscal 2016, Siemens generated revenue of more than €1 billion with digital services and around €3.3 billion with software solutions, an increase year-over-year of around 12 percent, considerably above annual market growth. “The digitalization platform MindSphere is a key element in our Vision 2020's innovation strategy. It’ll enable us to decisively shape digitalization at our customers and at our own facilities,” said Joe Kaeser, Siemens President and CEO.
One year after the launch of its decarbonization program, Siemens is already making significant advances in reducing its carbon footprint. The company was able to cut its own CO2 emissions from 2.2 million tons in fiscal 2014 to 1.7 million tons in fiscal 2016. With the aid of Siemens solutions, the company’s customers worldwide succeeded in reducing their CO2 emissions by 521 million tons in fiscal 2016.
Siemens has officially inaugurated the new rotor blade factory for offshore wind turbines in Hull, UK. The site has been transformed in under two years from a derelict industrial wasteland to a thriving high-tech manufacturing hub. “The new manufacturing plant is part of our efforts to establish offshore wind power as a key pillar of a sustainable energy mix in Europe. At the same time we are creating 1,000 attractive jobs here and thereby supporting sustainable regeneration in the Humber region,” said Michael Hannibal, CEO Offshore of Siemens Wind Power.
Siemens has won the contract to perform comprehensive upgrades of the building management, lighting, water and cooling systems of Museums Victoria in Melbourne, Australia. The €4.2 million project is being financed through Energy Performance Contracting, and the investment will be paid back over seven years from the energy savings achieved. State-of-the-art technologies in the field of energy and environmental efficiency support Australia’s largest public museum organization.
Stars from the world of start-ups joined Siemens in Munich for the official launch of next47. Highlights included speeches from Managing Board Member Roland Busch and next47 Managing Partner Lak Ananth as well as a panel discussion on blockchain applications. The role of next47: help Siemens respond quickly to market transitions and determine what future core businesses could be.
Siemens intends to further develop its healthcare business, Siemens Healthineers, and give it even greater flexibility in implementing its growth plans. To this end, the company is planning to publicly list its healthcare business.
Siemens and Bentley Systems announced that they have formalized a strategic alliance agreement to drive new business value by accelerating digitalization to advance infrastructure project delivery and asset performance in complementary business areas. “This move further extends our industry software ecosystem from 2D to 3D software solutions, taking the simulation portfolio in our Digital Enterprise offering to a new dimension,” said Klaus Helmrich, member of the Managing Board of Siemens AG.
Siemens will deliver 13 direct drive wind turbines for Croatia’s Zadar VI onshore wind project. After commissioning in 2017, the wind farm will have in total an installed capacity of 44.2 MW. The deal includes a long-term service agreement for 14 years.
The Dresser-Rand business secured a contract to supply two compressor trains to an onshore receiving facility in Ghana, Africa. This marks the first time the Dresser-Rand business has sold a DATUM® compressor driven by a Siemens gas turbine. “This order is a significant milestone in the course of the integration,” states Jesus Pacheco, head of New Equipment Worldwide in the Dresser-Rand business.
Siemens has been commissioned by the Acciona-Odebrecht construction consortium to electrify the entire Metro Line 1 in Ecuador’s capital of Quito. Line 1 will substantially improve daily commuting in the city, providing direct routes from north (El Labrador) and south (Quitumbe) into the downtown area and historical city center. The city’s first metro line will run over 20 kilometers and operate at an elevation of more than 2,800 meters above sea level.
IBM and Siemens Healthineers announced a five-year, global strategic alliance in Population Health Management (PHM). The alliance aims to help hospitals, health systems, integrated delivery networks, and other providers deliver value-based care to patients with complex, chronic and costly conditions. The health-focused alliance is the first of its kind for the companies, which have a long-standing global relationship that spans diverse industry, and marks Siemens entry into PHM.
Siemens has been awarded a contract to provide 122 new S70 light rail vehicles for Sound Transit, the regional transit system serving the Seattle and Central Puget Sound area in the U.S. state of Washington. The order, the largest single contract in Sound Transit’s history, will nearly triple the system’s current fleet from today’s 62 cars to 184.
Hydro Aluminium AS is building the most climate-friendly, energy-efficient aluminum smelting plant in the world on Norway’s Karmøy peninsula. Siemens is supplying a VB1 high-current switchgear with vacuum switching technology and the high-current supply unit for production. Measuring 34 meters long with 26 switchgear panels, it will be the longest high-current and generator switchgear ever built by Siemens.
Deutsche Bahn honored Siemens today as its most innovative supplier. The Supplier Innovation Award was presented by Rüdiger Grube, CEO of Deutsche Bahn (DB), for the new Intercity ICE 4. Siemens was recognized for its development of a completely new vehicle concept that offers great operating flexibility.
Siemens has successfully placed another large U.S.$ bond issuance following last year’s U.S.$7.75 billion transaction. “I am very pleased with the success of this transaction – our second largest ever. We considerably broadened our investor base, particularly in the U.S., and at very favorable financing conditions,” said Siemens CFO Ralf P. Thomas. In one of the transactions that ended yesterday, Siemens issued bonds with a total value of U.S.$6.0 billion.
Siemens has opened an R&D center in Suzhou, Siemens China’s first R&D base focused specifically on digital technologies. It will concentrate on big data, the web of systems, intelligent mobility, cyber security solutions, and industrial robotics. CT Suzhou, which has also formed a partnership with Siemens business groups to identify associated solutions for local and international markets, is expected to employ approximately 100 people.
The Argentinean Ministry of National Production, the Argentinean Investment and Trade Promotion Agency and Siemens intend to cooperate closely in the future. In focus: energy, transport and intelligent cities. The financing and investment potential is up to €5 billion.
Around 1,900 young people will be starting their professional careers at the beginning of the new training year. Around 20 percent of them will prepare for careers in business administration, and 80 percent will complete apprenticeships or work-study programs in technical fields and IT. In 2016, Siemens will also be celebrating the 125th anniversary of its vocational training program. Since 1891, Siemens has developed over 160,000 young people in technical and business professions.
Siemens has acquired a majority stake (85 percent) in Materials Solutions Ltd., one of the world leaders in Additive Manufacturing (AM) processing and production. The remaining 15 percent will be held by the founder of the company Carl Brancher. Materials Solutions in Worcester is a pioneer in the use of Selective Laser Melting (SLM) technology for the manufacture of high-performance metal parts.
“We are making good progress with execution of Vision 2020 and in the third quarter again achieved convincing results, particularly compared to the market. I am proud of my global team which delivered excellent performance, especially with regard to growth, in an increasingly difficult market environment,” said CEO Joe Kaeser.
Hamburger Hochbahn AG will begins operation of three additional e-buses today. The battery-powered buses built by Solaris will be charged at the same Siemens charging stations that also power the plug-in hybrid buses from Volvo serving Hamburg since 2014. Siemens is thus the first supplier worldwide to provide a charging infrastructure for e-buses that ensures interoperability for vehicles from different manufacturers.
Energy Management Transformers and its Chinese partners will deliver the world’s first 1,100-kilovolt converter transformers for the longest HVDC link in the world, which will cross China. They will not only enable transmission at a record voltage level, but are the most powerful transformers in the world, with a capacity of 587.1 megavolt-amperes.
Siemens researchers have developed a new type of electric motor that, with a weight of just 50 kilograms, delivers a continuous output of about 260 kilowatts – five times more than comparable drive systems. This propulsion system successfully completed its first public flight. The new drive system had already made its maiden flight on June 24, 2016. This advance means that hybrid-electric aircraft with four or more seats will now be possible.
Despite a material downturn in the sector, Siemens expects the acquisition of Dresser-Rand and Rolls-Royce’s former energy business to generate considerably greater synergies than originally anticipated. At the Energy and Oil & Gas Capital Market Day in Houston, Texas, Siemens Managing Board member Lisa Davis explained that the integration of the two companies was expected to generate synergies of €365 million by fiscal 2019 – or €165 million above the planned figure.
By founding next47, an independent unit designed to supercharge cooperation with start-ups, the company aims to promote disruptive ideas more intensely and to further accelerate the development of new technologies. The Managing Board will provide €1 billion for this purpose over the next five years. Artificial intelligence, decentralized electrification, autonomous machines, block chain applications and connected e-mobility are the five fields where next47 will operate.
Siemens and Gamesa have signed binding agreements to merge Siemens’ wind business with Gamesa. The two companies plan to create a leading wind power player.
Siemens Healthineers acquired the company NEO New Oncology AG, Cologne, Germany, in April 2016. Siemens Healthineers is focused on expanding its business in three fields: Molecular Diagnostics, Services and Advanced Therapies. NEO New Oncology is aligned with these fields by providing molecular diagnostics based services and products that have the potential to guide diagnosis as well as therapy decisions in oncology.
Siemens and Airbus have signed a collaboration agreement in the field of hybrid electric propulsion. In doing so, they have launched a major joint project towards the electrification of aviation with the goal of demonstrating the technical feasibility of various hybrid-electric propulsion systems by 2020.
Under the motto “Ingenuity for life – Driving the Digital Enterprise” at Hannover Messe 2016, Siemens presents tangible solutions and use cases that demonstrate how companies can benefit from convergence of the real and virtual worlds. “While others are still talking about Industrie 4.0, we show how the future of industrial manufacturing is already reality today,” summed up the Siemens CEO Joe Kaeser.
Siemens and Valeo have signed an agreement to form a joint venture in high voltage powertrains. With this move the companies create a global leader of innovative and affordable high-voltage components and systems for the entire range of electric vehicles including hybrids, plug-in hybrids and full electric vehicles.
Siemens Healthcare will become Siemens Healthineers. This new name embodies pioneering spirit and engineering expertise in the healthcare industry. Furthermore, the new name helps to define and live the company’s identity internally as well as toward customers and other external stakeholders.
Siemens shows at the light+building trade fair how commercial buildings can be comfortable while also offering economical operation. Among the highlights are energy services aimed at improving the performance and energy efficiency of buildings. Siemens will introduce its expanded portfolio of services under the name “Navigator powered by Sinalytics”.
More than 120,000 employees took part in the year’s Share Matching Program – eight percent more than in the previous year. This is taking Siemens closer to a goal it wants to reach by the year 2020: having more than 200,000 employees who also own a stake in their company. Currently, 153,000 active employees own Siemens shares.
Siemens will build a factory in Morocco to manufacture rotor blades for onshore wind turbines, creating up to 700 jobs and thereby tripling Siemens’ footprint in the country. The construction of the factory is expected to start as early as spring 2016 and it is scheduled to commence operations in 2017.
Now that its realignment is complete, Siemens is transforming itself into a digital industrial company while continuing to respond vigorously and responsibly to structural and technological changes in its individual businesses and markets. For example, increasing competitive intensity in the oil and gas, metals and mining sectors has made a realignment of capacities at the Process Industries and Drives Division necessary.
Siemens raises its previous expectation for basic EPS from net income in the range of €5.90 to €6.20 to the range of €6.00 to €6.40. Siemens CEO Joe Kaeser: “We delivered a strong quarter and are well underway in executing our Vision 2020. Therefore, we will raise our earnings outlook for 2016, even though the macroeconomic and geopolitical developments remain a concern for our markets.”
Siemens and CD-adapco have entered into a stock purchase agreement for the acquisition of CD-adapco by Siemens. The purchase price is $970 million. CD-adapco is a global engineering simulation company with software solutions covering a wide range of engineering disciplines.
Siemens intends to generate further growth in its core areas of electrification, automation and digitalization as well as explore new businesses, for which innovations are key. On December 8, CEO Joe Kaeser and CTO Siegfried Russwurm presented actions that show how Siemens drives innovation, including through R&D investment, establishing a unit with a startup environment, working with the Siemens Technology & Innovation Council, launching an investment fund to strengthen its employees’ power of innovation, and driving digitalization-related services.
Siemens meets its forecast for fiscal 2015 – including net income of €7.4 billion – and announces an ambitious guidance for fiscal 2016. “We’ve delivered what we promised and are well equipped to successfully implement our plans in the year ahead,” says CEO Joe Kaeser.
During the Siemens Business Conference Joe Kaeser announces the new Siemens claim “Ingenuity for life”. Ingenuity stands for the quality of our products, engineering excellence, innovation, reliability, dependability, emphasized the Siemens CEO. “For life” expresses that Siemens is here to stay for the future. But “Ingenuity for life” also articulates the claim and underlying purpose that drives Siemens: to provide advancements in the service of people and society, i.e. “Business to Society”, and thus to sustainably help create a better world for future generations.
Siemens has signed a long-term service contract for aero-derivative gas turbine trains operated at the Dolphin Energy Project in Qatar. For a term of 18 years, Siemens will provide service and maintenance for nine aero-derivative gas turbines from former Rolls-Royce Energy and the related nine Dresser-Rand compressors. Managing Board member Lisa Davis said: “This order impressively underscores that we are on the right path with our acquisitions of Rolls-Royce Energy and Dresser-Rand.”
Siemens has again been recognized as one of the most sustainable companies in its industry. Each year, the investment company RobecoSAM compiles the Dow Jones Sustainability Index (DJSI), the world’s most renowned ranking of its kind. In this year’s DJSI, Siemens ranks among the leaders, taking second place in the Industrial Conglomerates area, and also received top marks in nine of the 20 DJSI categories.
Siemens is investing around €200 million to build its first production facility for offshore wind turbine components in Germany. The factory is to manufacture nacelles for the company’s next-generation wind turbines. The new factory in Cuxhaven will be one of Siemens’ most significant new production facilities in Germany in recent years and create up to 1,000 new jobs.
Siemens informs the relevant employee representatives about the personnel adjustments planned in connection with the new organizational structure. In a drive to streamline administrative and overhead functions, about 7,800 jobs are to be cut. The savings of about €1 billion are invested in innovation, productivity and growth initiatives.
Atos and Siemens plan to further expand their successful alliance, one of the largest strategic relationships ever between a global engineering company and a global IT provider. In particular, the two companies are exploring further opportunities for joint collaborations in the fields of advanced data analytics, cyber security and device connectivity.
Siemens concludes acquisition of Dresser-Rand for U.S.$7.8 billion. With this acquisition, Siemens is merging the businesses of two strong companies in the field of high-speed rotating equipment and related services.
Exhibiting at the Achema 2015, Siemens presents its strategy for digitalization in the process industries, including digitalization as a central lever for improved productivity in the face of tough competitive pressure, data integrity from engineering through to cloud-based services, and “Digital twin” for increased efficiency and productivity.
Siemens installs a catenary system for hybrid trucks in Sweden, which electrifies a two-kilometer stretch of the E16 highway north of Stockholm as a demonstration project – the first of its kind in Europe. The goal is to use electrified road transport to cut energy consumption in half and reduce local air pollution.
With an overall value of €8 billion, Siemens has been awarded the single biggest order in its history. The contracts call for turnkey delivery of three high-efficiency natural gas-fired combined cycle power plants (CCPPs) as well as 600 wind turbines, which will boost Egypt’s power generation capacity by 16.4 gigawatts, supporting the country’s rapid economic development. Siemens will also build a rotor blade manufacturing facility in Egypt, which will provide training and employment for up to 1,000 people.
Building Technologies sells its “Security Products” business to the U.S. security company Vanderbilt, which will preserve all jobs and remain an important product supplier over the long term. More than ever, the Division is now focusing its efforts on creating comprehensive integrated security solutions for its customers, ranging from office buildings for multinational corporations to critical infrastructures such as energy suppliers.
The state-owned company Russian Railways (RZD) awards Siemens a maintenance contract for Desiro RUS type regional trains for use in Russia. Siemens is responsible, among other things, for the management of the service work, for the logistics and for supply of spare parts. The 40-year contract also includes preventive maintenance.
One year after presenting its Vision 2020, Siemens is on track with the implementation of its concept for the company’s strategic realignment. This includes measures to improve profitability at the Power and Gas Division’s power generation business as well as a bundle of additional measures for restructuring chronically low-profit businesses. “With the initiation of these measures, the company’s structural reorganization has been completed for the most part,” said Siemens CEO Joe Kaeser.
For the digital future of Industrie 4.0, Siemens offers products and solutions across every sphere of its activity. For example, Siemens supports the digitalization of manufacturing and process industries through every phase of the value chain. Smart data analysis and evaluation improves decision-making and enhances productivity in industry. The path to the Digital Enterprise encompasses four logically interacting elements: The Digital Enterprise Software Suite, industrial communication networks, automation security and business-specific industrial services.
Siemens is expanding its electromobility business by establishing a new location for the development, production and testing of electric powertrains for hybrid and electric vehicles. By combining development and production on one site, Siemens is able to respond faster to the individual demands of its customers from the automotive industry.
Siemens researchers develop a new type of electric motor for use in aircraft that, with a weight of just 50 kilograms, delivers a continuous output of about 260 kilowatts – five times more than comparable drive systems. Thanks to this power-to-weight ratio, larger aircraft with takeoff weights of up to two tons can use electric drives for the first time.
Siemens receives the biggest wind turbine order ever awarded in Africa and will supply 157 wind turbines for three projects in the South African province of Northern Cape. The contract includes a service and maintenance agreement for a period of ten years.
Siemens receives an order to upgrade the instrumentation and control (I&C) system in units 5 and 6 of the Samcheonpo Thermal Power Station in South Korea. This marks the first time that Siemens is to upgrade the I&C system for GE steam turbines.
Siemens opens its Clean Energy Center, a new burner test center for gas turbines in Ludwigsfelde near Berlin, which requires an investment volume of about €100 million. The aim is to enhance the efficiency of Siemens gas turbines and improve their flexibility regarding the use of different liquid and gaseous fuels.
Asli Kunur is pleased to receive the 2,000,000th matching share, which Joe Kaeser presented to her personally. “The Employee Share Program is an important part of our ownership culture at Siemens,” said Joe Kaeser, CEO of Siemens AG.
Siemens hands over BorWin2, the world’s largest direct-current grid connection, to TenneT. This significant step for the German energy transition provides a transmission capacity of nearly 800 MW, sufficient to supply power to about one million households.
The founding of the joint venture Primetals Technologies, Limited with headquarters in the UK capital, London, forms a globally operating complete provider for plants, products and services for the iron, steel and aluminum industry.
In fiscal 2014, Siemens filed about 4,300 patent applications – a year-over-year increase of nine percent. In addition, the company intends to boost investments in R&D by around €400 million. Siemens also honored its Inventors of the Year 2014 on December 3. “Innovation is a cornerstone of our Siemens Vision 2020,” says Joe Kaeser, CEO of Siemens AG.
The Siemens Managing Board establishes a Siemens Technology & Innovation Council (STIC). This council will focus, in particular, on developments, innovations and technologies that will have an impact on Siemens’ business over the next ten years.
Siemens is awarded an order in Central Europe for the first time outside of Germany for turnkey erection of a combined cycle power plant to be equipped with the innovative Siemens H-Class gas turbine. Siemens will also supply the main components and be responsible for plant maintenance and service for a period of around 12 years.
Siemens announces its plans to sell Siemens Audiology Solutions to the investment company EQT and Germany’s Strüngmann family as co-investor for €2.15 billion. Closing was on January 15, 2015.
Siemens achieves its goals due to a solid fourth quarter, with net income of €5.5 billion. “We achieved the results originally promised for fiscal 2015 and have thus made considerable progress in strengthening our portfolio. Vision 2020 sets a clear strategic course for the future,” says CEO Joe Kaeser.
Siemens has received its first order from Japan for delivery of two innovative H-Class gas turbines, therefore gaining a foothold on the Japanese power market, in the home market of one of its most important competitors. The two SGT5-8000H gas turbines will form the core of a combined cycle power plant for Kobe Steel, Ltd.
Siemens receives a large order from the Canadian energy utility Manitoba Hydro for a high-voltage direct-current (HVDC) power transmission link in Canada. Siemens is supplying both converter stations for the Bipole III HVDC project, which has a length of about 1,400 kilometers.
Robert Bosch GmbH acquires Siemens’ 50 percent stake in the joint venture BSH Bosch und Siemens Hausgeräte GmbH (BSH). BSH becomes a wholly owned subsidiary of the Bosch Group and will be allowed to continue to produce and market household appliances under the Siemens brand over the long term.
Siemens Healthcare announces its plans to sell its hospital information system business for U.S.$1.3 billion to Cerner Corporation. Closing was on February 2, 2015.
“Today, with ‘Siemens Vision 2020’, we're laying the foundation for the Siemens of the next generation. And in the coming years, we’ll work together to build on this basis and ensure that we’re no longer pushed back and forth by short-term developments.” With these words Siemens CEO Joe Kaeser announces Vision 2020 on May 7, 2014. Central points: In the future, Siemens will position itself within electrification, automation and digitalization. In addition, Siemens is making its organization flatter and more customer-oriented and wants to increase the number of employee shareholders.