Siemens AG is reckoning with much higher savings from more efficient real estate management than previously expected. By bundling the worldwide responsibility for all real estate activities under the roof of the internal real estate specialist Siemens Real Estate (SRE), the annual costs are to be reduced by over €250 million from 2011 and by up to €400 million from 2014 by comparison with the level of 2008. “We have been very successful with our program to optimize administration costs and now want to increase the efficiency of our real estate management. We will achieve this by significantly improving surface area productivity and coordinating the infrastructure services,” said Joe Kaeser, Siemens CFO. The implementation of the program for bundling the real estate activities will at first entail costs totaling an estimated €300 million by fiscal 2013 due to the reduction of unused spaces and the consolidation of real estate.
Siemens demonstrated operational strength in a difficult economic environment in fiscal 2009. Growth and profit targets were met and, in part, substantially exceeded. The company continued to push its focus on its core businesses, and further expanded its Environmental Portfolio, one of the important growth drivers at Siemens. The procurement initiative and the program to reduce selling, general and administrative (SG&A) expenses further strengthened Siemens’ competitiveness. “In a very difficult environment, Siemens has performed very well in 2009 compared to its key competitors. Supported by our Energy and Healthcare Sectors, we can look back with pride on our stable revenue development and our robust profit on an operational basis,” said Peter Löscher, President and Chief Executive Officer of Siemens AG. “With new energy we started in fiscal 2010 and have strengthened our portfolio by the addition of Solel. We see substantial further potential worldwide in the area of environmental technology. To ensure the sustainable viability of businesses that have been particularly affected by the crisis, we are continuing to rigorously implement all necessary measures. The overall market environment will remain challenging in 2010.”
Siemens AG has come to an agreement about settlements with six further former Board members against whom damages were claimed in connection with past cases of corruption in the company. Corresponding agreements have been reached with former Managing Board members Johannes Feldmayer, Klaus Kleinfeld, Jürgen Radomski and Uriel Sharef, the former Chairman of the Managing Board and the Supervisory Board Heinrich von Pierer, and the former Chairman of the Supervisory Board Karl Hermann Baumann. Agreement had already been achieved prior to this with the three former Managing Board members Edward G. Krubasik, Rudi Lamprecht and Klaus Wucherer. No agreement has been reached with the former Managing Board members Thomas Ganswindt and Heinz-Joachim Neubürger, against whom criminal investigations by the Public Prosecutor’s Office Munich are pending. The current nine settlement agreements must be finally decided on by the Siemens Annual Shareholders’ Meeting on January 26, 2010.
Siemens AG anticipates massive investments will be made in infrastructure in major cities throughout the world in the coming years. The largest part of the funds will be invested in ecofriendly solutions. “Cities are the growth drivers of the future, yet also account for the biggest share of CO2 emissions. Cities worldwide are the decisive factor for our climate. With our unique Environmental Portfolio, Siemens is the perfect partner for sustainable urban development,” said Siemens President and CEO Peter Löscher.
Fitting a towering wind turbine with light-emitting diodes (LEDs) and creating a highly visible symbol for climate protection and sustainability – Siemens has achieved a unique and pioneering technical project in the world. The concept was implemented together with Munich multimedia artist Michael Pendry after more than twelve months of intensive preparations. Now the moment is about to arrive when around 9,000 LEDs brilliantly light up the wind turbine from the 1st Advent Sunday until December 31, 2009.
Siemens’ innovative strength continues unabated: The company currently owns over 56,000 patents — 1,000 more than in fiscal year 2008. Siemens applied for around 4,200 patents in fiscal year 2009, the result of approximately 7,700 inventions reported worldwide by the company’s 32,500 researchers and developers — which is equivalent of 35 inventions per day of work. At a ceremony in Munich on November 23, Siemens CEO Peter Löscher honored 13 of the company’s most outstanding inventors. The award-winning research ranges from an infrared camera system that makes it possible to look into the white-hot interiors of gas turbines, to environmentally friendly “green ship” technology and a new 3D X-ray diagnostic system for detecting cancer. Altogether the 13 inventors hold about 1,000 individual patents.
In fiscal 2009, Siemens generated revenue of €23 billion with products and solutions from its Environmental Portfolio. The green portfolio has grown by 11 percent by comparison with fiscal 2008, when its revenue – calculated on a comparable basis – totaled just €20.7 billion. In fiscal 2009, energy-saving motors, solar inverter systems and selected components for energy-saving building technology were among the products added to the portfolio. “Our green products and solutions are contributing to stabilizing our business during the economic crisis,” said Barbara Kux, Chief Sustainability Officer and Member of the Siemens Managing Board. The company already indicated that Siemens’ total revenue for 2009 was expected to be approximately equivalent to that of fiscal 2008.
In its decision today regarding the so-called transformer cartel, the European Commission refrained from imposing a fine on Siemens AG. For its decisive role in helping expose the cartel, the company was granted state’s witness status.