We released our third quarter results for fiscal year 2020 on August 6, 2020. The Conference Call for journalists and the Analyst Call were broadcast live.
- Adjusted EBITA in Industrial Businesses climbs 8 percent to €1.8 billion
- Adjusted EBITA margin rises to 14.3 percent
- Strong free cash flow of more than €2.1 billion in Industrial Businesses providing liquidity and security
- Orders down 7 percent to €14.4 billion and revenue down 5 percent to €13.5 billion year-over-year
- Global uncertainties continuing in Q4
Despite major uncertainties due to the global COVID-19 pandemic, Siemens AG maintained its course very successfully in Q3 of fiscal 2020, both strategically and operationally. In a challenging macroeconomic environment, the company’s Industrial Businesses generated a strong EBITA margin of 14.3 percent. Adding 1.7 percentage points to this margin was a positive effect of €211 million at Digital Industries. Siemens successfully avoided major supply chain bottlenecks in connection with the COVID-19 crisis despite taking precautionary measures, which were in some cases substantial, to prioritize workforce health and safety. With free cash flow of more than €2.1 billion in its Industrial Businesses (€2.5 billion at Group level), Siemens has sufficient liquidity to master the COVID-19 crisis effectively – or to emerge from it even stronger than before.
- Klaus Helmrich to retire at end of March 2021 after 35 years at Siemens
- Cedrik Neike to succeed Helmrich as Managing Board member responsible for Digital Industries, effective October 1, 2020
- Matthias Rebellius to succeed Neike as Managing Board member responsible for Smart Infrastructure, effective the same date
- Effective October 1, 2020, Roland Busch to assume responsibility for fiscal 2021 as previously announced; Joe Kaeser to actively support transition and hand over CEO role to Busch upon completion of Annual Shareholders’ Meeting in 2021
- Succession process now concluded for Siemens AG’s leadership team with new Managing Board set up under leadership of Roland Busch, effective October 1, 2020, to lead next phase of Siemens’ transformation
Klaus Helmrich (62), the Managing Board member responsible for Digital Industries (DI), will retire upon expiration of his contract at the end of March 2021 after 35 years at the company. Cedrik Neike (47), the Managing Board member currently responsible for Smart Infrastructure (SI), will succeed him as of October 1, 2020. Matthias Rebellius (55) – currently SI’s Chief Operating Officer (COO) – has been appointed to the Managing Board and will assume responsibility for this unit.
- Transformational milestone in
execution of Siemens’ Vision 2020+ strategy
- Siemens Healthineers intends to
acquire 100 percent stake in U.S. healthcare company at a purchase price of around
$16.4 billion
- Acquisition to create global leader
in cancer research and therapeutics and support Siemens Healthineers’ equity
story
- Mixed financing through a capital
increase at Siemens Healthineers AG and intra-Group loans to Siemens
Healthineers
- Siemens AG’s stake in Siemens Healthineers
AG to decline to about 72 percent from 85 percent
- Siemens AG to remain long-term
majority shareholder in Siemens Healthineers
- Siemens
AG aims to maintain its current A+ / A1 rating
Siemens AG is
continuing to rigorously execute its Vision 2020+ strategy and therefore
expressly welcomes Siemens Healthineers AG’s acquisition of a 100 percent stake in Varian
Medical Systems, Inc. (NYSE: VAR), a U.S. company active in the area of cancer research and therapy. Payment
of the purchase price of around $16.4 billion is to be enabled by mixed
financing from the issuance of new Siemens Healthineers shares and the issuance
of bonds. The proceeds from the bonds are to be transferred within the Group to
Siemens Healthineers under customary market conditions.
- Siemens’ lightning information service detected about 329,000 lightning strikes in Germany in 2019 – down 26 percent on 2018
- Germany’s “lightning capital” in 2019 was the city of Speyer in Rhineland-Palatinate
- The fewest strikes were recorded in three Bavarian cities: Hof, Bayreuth and Schweinfurt
- Bavaria was the German state with the most lightning activity in 2019, Potsdam was the leader among state capitals
- The most lightning strikes in 2019 were recorded on June 12
- At European level, Trieste and surrounding area tops the ranking in Siemens’ 2019 lightning atlas
The city of Speyer in the state of Rheinland-Palatinate was Germany’s “lightning capital” in 2019. Siemens’ lightning information service BLIDS (which stands for Blitz-Informationsdienst von Siemens) detected just under 3.1 lightning strikes per square kilometer in Speyer in 2019. The cities of Rostock on the Baltic coast and Lübeck in the state of Schleswig-Holstein took second and third places with 2.6 and 2.5 ground flashes per square kilometer, respectively. Germany’s lowest density of lightning strikes was recorded in the Bavarian cities of Hof and Bayreuth, where considerably fewer than 0.1 lightning strikes per square kilometer were recorded. The Bavarian city of Schweinfurt, which was No. 1 in Siemens’ 2018 lightning atlas, was also at the bottom of the list, recording 0.1 lightning strikes per square kilometer in 2019. With lightning striking just under 2.3 times per square kilometer, Potsdam led the country’s list of state capitals in 2019, followed by the neighboring city of Berlin (rounded off: 2.2). Berlin is also the German state registering the highest lightning density, while Bavaria recorded the highest number of measured ground flashes in 2019. Overall, at 329,000, BLIDS recorded its lowest number of lightning strikes, around 26 percent fewer than in 2018.
- Digitalization and automation solutions provide companies in discrete and process industries with the necessary flexibility for new conditions
- The Digital Enterprise Virtual Summit showcased concrete and future-oriented solutions
- The Digital Enterprise Virtual Summit had around 12,000 registrations from Customers and Partners with already 6,300 live attendees on the day of the event
The current situation creates major challenges for industrial companies worldwide – and shows that digitalized and highly automated production is more important than ever when it comes to gaining a competitive edge. This is the only way that companies can react to current and future challenges with the required degree of flexibility. Successful solutions were presented at the Digital Enterprise Virtual Summit by Siemens on July 16. As part of the conference, representatives from numerous companies from the discrete and process industries discussed strategies and technologies for future success under these new conditions. The focus was on topics such as the horizontal and vertical integration of the value chain with simulation and optimization from product creation through to servicing and from field level to the cloud. Other topics included online and remote solutions as well as edge and cloud computing, additive manufacturing, industrial 5G and artificial intelligence. The Digital Enterprise Virtual Summit had around 12,000 registrations from Customers and Partners with already 6,300 live attendees on the day of the event. The Summit is now also available to be viewed on demand at http://www.siemens.com/digital-enterprise-summit.
- Mobile working two to three days a week as worldwide standard
- Managing Board approves new model for working independently of fixed locations
- Model based on transformation of leadership and corporate culture
- Siemens among first large companies to adjust working models permanently
Siemens will establish mobile working as a core component of its “new normal” and will make it a permanent standard, both during the global pandemic and beyond. The company’s Managing Board has now approved implementation of a corresponding model. The aim is to enable employees worldwide to work on a mobile basis for an average of two or three days a week, whenever reasonable and feasible. The coronavirus crisis and social distancing measures have shown that working independently of a fixed location offers many advantages and is possible on a much wider scale than originally thought. Worldwide surveys of Siemens’ employees confirmed their desire for greater flexibility and for personalized solutions when it comes to deciding where they work.
- First digital twin in petrochemical industry in Indonesia – for Chandra Asri
- Transforms analog plant data into automated digital twin framework
- One integrated platform for digital management of all plant asset documentation and data
- Provides control and transparency of plant asset information, increasing performance
Siemens and Bentley Systems will develop the first petrochemical digital twin in Indonesia for Chandra Asri, the country’s largest integrated petrochemical complex. With over 27 year footprint, the latter is set to double its capacity in the next five years to tap into the robust domestic and regional economic growth.
- Protection during grid power outages and avoidance of peak loads
- Reduced power consumption by recovering braking energy
- Higher availability and low installation costs
Siemens is offering new Ultracapacitor Modules which ensure machine operation during grid power outages, avoid peak loads and recover braking energy. The UltraCap "DLC modules" are ideal for use as energy storage devices in machines, such as those used in wood, glass and plastic processing, metal forming technology, machine tools, handling and robotics.