- Focus on growth fields along the electrification, automation and digitalization
- Acquisition of Rolls-Royce gas turbine and compressor business, joint venture for Metals Technologies and public listing of audiology set the course
- New organization with flatter structures – Sector level eliminated
- Greater employee participation in company success – Siemens to make up to €400 million available annually depending on company performance
- Launch of share buyback of up to €4 billion upcoming
In the future, Siemens AG will position itself along the electrification, automation and digitalization. Along these value chains Siemens has identified several growth fields in which it sees its greatest long-term potential. The company is orienting its resource allocation toward these growth fields and has announced concrete measures in this direction. The measures include the purchase of the major part of Rolls-Royce’s energy business and the contribution of Siemens’ Metals Technologies into a joint venture. A public listing of the audiology business will also be prepared. In addition, Siemens is making its organization flatter and more customer-oriented. This is Siemens – Vision 2020.
- Siemens completes portfolio with aero-derivative gas turbines for growth in the oil and gas and decentralized power generation sectors
- Purchase price for the acquired business is £785 million or about €950 million
- Transaction expected to close before the end of December 2014
Siemens is acquiring the Rolls-Royce Energy aero-derivative gas turbine and compressor business and thereby strengthening its position in the growing oil and gas industry as well as in the field of decentralized power generation. The purchase price is £785 million or about €950 million. The transaction is expected to close before the end of December 2014, subject to regulatory approvals.
As part of its realignment, Siemens AG has named its future management team. The Supervisory Board of Siemens AG has appointed Lisa Davis – who is currently Executive Vice President Strategy, Portfolio and Alternative Energies at Royal Dutch Shell – to the Managing Board, effective August 1, 2014. Lisa Davis will be responsible on the Managing Board for the Power and Gas Division, the Wind Power and Renewables Division, the Power Generation Services Division, the Region North America and the Region South America. She will be based in the United States. Michael Süß is resigning from the Managing Board with immediate effect, for personal reasons and by mutual consent. He will continue to be available to Siemens' President and CEO in a consultative capacity. Until Lisa Davis assumes her position, the Energy Sector will be headed by Randy Zwirn on an acting basis and represented on the Managing Board by Klaus Helmrich.
As part of its realignment, Siemens AG is preparing to publicly list its audiology activities in order to give the business an opportunity to better leverage its potential outside the company. Step by step, Siemens' hearing aid activities have succeeded in capturing a strong market position in recent years. Experts predict that by 2020 the market for hearing aids will have grown by an average of four percent per year.
The Managing Board and the Supervisory Board of Siemens decided on Tuesday to make an offer to Alstom. The prerequisite for this offer is, that Alstom agrees to give Siemens access to the company's data room and permission to interview the Management during a period of four weeks, to enable Siemens to carry out a suitable due diligence. A letter in this regard was submitted this afternoon to the French company. No further comments will be made at this time.
A Siemens delegation will have the opportunity to meet with the French president and other high-ranking French political leaders today. Following this meeting, Siemens will convene as soon as possible to decide whether to make an offer for Alstom and what this will consist of.
- Siemens AG plans to end its listing on the New York Stock exchange (NYSE) on or about May 15, 2014
As announced in the press release from January 28, 2014, Siemens AG is planning to end the NYSE listing of its American Depositary Shares (ADSs) (ticker symbol "SI"). In addition, Siemens AG intends to terminate its reporting obligations (deregistration) with the U.S. Securities and Exchange Commission (SEC). As previously disclosed, the goal of the delisting and deregistration is to address the change in the behavior of investors. As a consequence, processes of financial reporting can be simplified and their efficiency improved. The trading of Siemens shares is nowadays conducted predominantly in Germany and via electronic trading platforms ("over-the-counter", OTC). Trading volume of Siemens shares in the United States is low, amounting to significantly less than 5 percent of their global trading volume over the last 12 months. Accordingly, on or about May 5, 2014, Siemens AG plans to submit to the SEC an application for removal from listing (Form 25) its ADSs with the NYSE. The last trading day of the ADSs on the NYSE is currently expected to be on or about May 15, 2014. After the delisting of the ADSs, Siemens AG intends to submit an application to the SEC on Form 15F for deregistration and termination of its reporting obligations under Section 13(a) and 15(d) of the U.S. Securities Exchange Act of 1934.
- Long-term cooperation in most advanced energy technologies with Huaneng Power International
- Support of clean energy development in China
In the presence of the Chinese President Xi Jin Ping and German Chancellor Angela Merkel, Siemens AG, Huaneng Power International, Inc., and Shanghai Electric Group today signed a Memorandum of Understanding in Berlin. Under the agreement, the three parties will strengthen their long-term cooperation in most advanced gas turbine and steam power plant technology, modernization and upgrade of steam turbine units and wind power. "We can look back on a long and successful partnership with China. The strategic agreement with Huaneng Power International is a next step, which further underlines our relationship," said Joe Kaeser, President and CEO of Siemens AG. "Together with our strategic partner Shanghai Electric, we are looking forward to elevating our cooperation with Huaneng to a whole new level." Through the joint efforts, Huaneng aims to further improve efficiency of power generation units, drive energy saving, support clean energy development and achieve sustainability.
Michael Sigmund (56) was appointed, at the request of the Managing Board of Siemens AG, to the Supervisory Board by the District Court of Charlottenburg (Berlin) as the new representative of the Executive Employees. The appointment takes effect on March 1, 2014. Michael Sigmund succeeds Rainer Sieg (65), whose employment with Siemens will be terminated on February 28, 2014 upon his reaching retirement age and he accordingly stepped down from the Supervisory Board. "We thank Rainer Sieg for his many years of constructive and trusting work on the Supervisory Board. In the name of the full Supervisory Board, I welcome Mr. Sigmund and look forward to our work together," said Gerhard Cromme, Chairman of the Siemens Supervisory Board.