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Siemens’ IT business to become limited liability company on October 1

Over the last two years, revenue at Siemens IT Solutions and Services has declined by slightly more than a quarter. As a result, Siemens has begun reorienting SIS. Between fiscal 2010 and fiscal 2012, the company intends to provide – and has, in part, already provided – SIS with about €500 million for investment. Some €300 million has already been included in the SIS business plan as investments in property, plant, equipment and intangible assets. Siemens will take this amount into consideration in the calculation of the capitalization of Siemens IT Solutions and Services GmbH and its subsidiaries in and outside Germany.
The business plan also contains additional investments for the reorganization of SIS’s current solutions portfolio, for employee training and for the financing of bidding and startup costs for strategic orders in the solutions and outsourcing areas. These investments will be taken into account in the capitalization. Siemens will provide a further €200 million, as needed, for additional measures to drive value creation at SIS – for example, steps to strengthen its IT outsourcing business and expand its software business as well as selected acquisitions and innovation. Investments of at least €50 million are planned for the German locations alone. As announced, around 4,200 jobs worldwide are to be cut from a total workforce of roughly 35,000. About 2,000 of these cuts will be made in Germany.
The goal is to give Siemens’ IT business a competitive structure. A revenue target of €4.1 billion has been set for fiscal 2010. SIS is expected to return to annual growth rates at market level starting in 2012 and to achieve profit margins customary in its industry by 2013.
Following the carve out, the Siemens IT Solutions and Services GmbH will continue to be a 100 percent Siemens subsidiary and a preferred partner for the Siemens Sectors. There are a variety of options for the further strategic development of SIS and the strengthening of Siemens’ IT and software knowhow over the medium term. These options are being carefully reviewed. The successful reorganization of SIS as a separate unit is now the priority.

For this press release

Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. For over 160 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. The company is the world’s largest provider of environmental technologies, generating €23 billion – nearly one-third of its total revenue – from green products and solutions. In fiscal 2009, which ended on September 30, 2009, revenue totaled €76.7 billion and net income €2.5 billion. At the end of September 2009, Siemens had around 405,000 employees worldwide. Further information is available on the Internet at:

This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of Siemens’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect Siemens’ operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For Siemens, particular uncertainties arise, among others, from changes in general economic and business conditions (including margin developments in major business areas and recessionary trends); the possibility that customers may delay the conversion of booked orders into revenue or that prices will decline as a result of continued adverse market conditions to a greater extent than currently anticipated by Siemens’ management; developments in the financial markets, including fluctuations in interest and exchange rates, commodity and equity prices, debt prices (credit spreads) and financial assets generally; continued volatility and a further deterioration of the capital markets; a worsening in the conditions of the credit business and, in particular, additional uncertainties arising out of the subprime, financial market and liquidity crises; future financial performance of major industries that Siemens serves, including, without limitation, the Sectors Industry, Energy and Healthcare; the challenges of integrating major acquisitions and implementing joint ventures and other significant portfolio measures; the introduction of competing products or technologies by other companies; a lack of acceptance of new products or services by customers targeted by Siemens; changes in business strategy; the outcome of pending investigations and legal proceedings and actions resulting from the findings of these investigations; the potential impact of such investigations and proceedings on Siemens’ ongoing business including its relationships with governments and other customers; the potential impact of such matters on Siemens’ financial statements; as well as various other factors. More detailed information about certain of the risk factors affecting Siemens is contained throughout this report and in Siemens’ other filings with the SEC, which are available on the Siemens website,, and on the SEC’s website, Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.
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Michael Friedrich

Siemens AG

Wittelsbacherplatz 2
80333 Munich

+49 (89) 636-33039