Value of an investment in Siemens more than doubled during Kaeser’s tenure
Joe Kaeser has worked for Siemens for more than 40 years and headed the company as President and CEO for the past seven. During this period, he has renewed and shaped the company from the ground up. His first major strategic step was Vision 2020. By executing this strategy concept, Siemens strengthened its competitiveness and returned to a position of market leadership.
With Vision 2020+, Kaeser and his team then developed a strategy to radically transform the Siemens conglomerate into three powerful and focused companies. Today, the Siemens ecosystem comprises Siemens AG, Siemens Healthineers and Siemens Energy. All three companies are poised for ultimate value creation because they now have the optimal capabilities for focusing on the specific requirements of their markets and reacting quickly to changes. Siemens AG itself is now more focused, more adaptable and stronger than ever.
Shareholders have approved this strategy and benefited from it directly: between July 2013 and January 25, 2021, the value of an investment in Siemens AG more than doubled. Total shareholder return amounted to more than 136 percent. During the same period, Germany’s DAX-30 stock index totaled only 64 percent. In addition, Siemens Healthineers has increased in value from €28 billion to nearly €50 billion and Siemens Energy from around €16 billion to €24 billion since their respective public listings. During Kaeser’s tenure, Siemens very significantly improved its Adjusted EBITA-Margin (Industrial Businesses) to, most recently, 14.3 percent (fiscal 2020).
Kaeser, as President and CEO, and Busch, as the member of the Managing Board with responsibility for R&D and Chief Sustainability Officer, enhanced Siemens’ ability to innovate for the long term by making targeted investments in forward-looking fields such as the digital factory, distributed infrastructure solutions and rail automation. The company invested a total of €4.6 billion in research and development in fiscal 2020 – an increase of about one-third compared to 2013. They also strengthened the technology company’s sustainability. Even before the signing of the Paris Agreement in 2015, Siemens was the first major industrial company to pledge to achieve carbon neutrality by 2030. Since 2014, Siemens has slashed its own emissions by more than 54 percent.
The acquisition of Varian, the global market leader in cancer therapy, by Siemens Healthineers has a transformational character in the battle against cancer and, with a value of US$16 billion, is the largest acquisition in the company’s history.