German industrial conglomerate Siemens has just completed its structural realignment, a key part of its Vision 2020+ strategy concept.
|Siemens aims to build up a powerful ecosystem |
Yesterday morning’s listing in the Prime Standard segment of the Frankfurt Stock Exchange completed the quotation of Siemens Energy as a leader in the transmission and generation of electrical power.
This step marks a new chapter in the company’s history. Along with this, the independent Siemens companies Siemens AG, Siemens Healthineers AG, and Siemens Energy AG will work together within an ecosystem of common interests.
In each case, however, they will focus on the priorities and characteristics of their specific businesses and industries. With some 240,000 employees, Siemens AG will primarily concentrate on technologies that are driving advances in the digital transformation of industry, in smart infrastructure, and in sustainable transportation.
“The listing of Siemens Energy means that we’ve successfully reached a key milestone in Siemens’ structural realignment,” said Joe Kaeser, president and CEO of Siemens AG. “With three powerful, focused, and independent companies, we have an outstanding setup for the future. The separately listed companies will be in a significantly better position to tap into the individual businesses’ value-creating potential than would be possible in a conglomerate.”
|This step marks a new chapter in the company’s history. Along with this, the independent Siemens companies Siemens AG, Siemens Healthineers AG, and Siemens Energy AG will work together within an ecosystem of common interests. |
According to Kaeser, this is another way to create prospects for the sustainable, long-term expansion of each of the businesses. After just a short time, Siemens Healthineers has provided an impressive example of what this change enables in terms of value creation and transformational alignments.
“Once again, our entire team has proven that it can also master challenges of historic magnitude with great decisiveness and flexibility,” added Roland Busch, deputy CEO – and future CEO – of Siemens AG. “We’ve largely completed the current phase of our company’s structural development. Now, we’ll focus sharply on its digital transformation.”
Ralf P. Thomas, CFO of Siemens AG and member of the Supervisory Board of Siemens Energy AG, claims the spin-off will create an independent and agile energy champion with a strong brand and Siemens’ engineering DNA, and in the future, Siemens Energy will act independently and have a strong financial basis.
At the same time, Siemens AG will become more transparent and leaner with a clear focus on the core business of its industrial units.
In an initial step, Siemens AG has spun off 55 per cent of Siemens Energy AG to Siemens’ shareholders and thereby made the corresponding number of shares available for free-float ownership, a further 9.9 per cent were transferred to Siemens Pension-Trust e.V.
Siemens AG intends to further reduce its equity stake in Siemens Energy within 12 to 18 months.
As a strong, focused company with a global setup, Siemens Energy will be able to use its resources more efficiently. The independent listing creates additional transparency and individual accountability.
More than almost any other company, Siemens Energy covers substantial parts of the energy value chain, including the service business. As a result, the company can adapt flexibly to the market environment, which is being transformed in the course of the energy transition.
The core element of Vision 2020+ was giving Siemens’ individual businesses significantly more entrepreneurial independence and responsibility under the strong, shared Siemens brand in order to sharpen their focus on their individual markets. Siemens’ healthcare technology business has been listed on the stock exchange since March 2018 as the separately managed company Siemens Healthineers.
In early August 2020, Siemens Healthineers announced its planned acquisition of Varian, a world-leading company in the field of cancer care. This move underscores the strategic and transformational power of Vision 2020+.