Capital Market Day Siemens Energy
Siemens Energy will hold the Capital Market Day on 1 September. C. Bruch will present the strategy and objectives within the changes in the energy ecosystem.
Germany, Munich: Siemens Energy held the Capital Market Day on 1 September. Siemens Energy, an energy infrastructure spin-off from Siemens, will become independent at a time characterised by energy systems around the world undergoing fundamental changes: the balance of fossil fuels and renewable energy sources is shifting towards a decarbonised portfolio and around 850 million people are still living without access to electricity when according to studies, global demand for energy could even increase by around 25 % by 2040. Spinning of Siemens Energy and listing it on the stock market allows a step change in operational performance.
Roland Busch, Deputy CEO SIEMENS AG, and Ralf P. Thomas, CFO Siemens AG, presented the Siemens Energy spin-off from the SIEMENS AG’s point of view. Christian Bruch, the President and CEO of Siemens Energy as of May 2020, presented the company’s strategy and objectives in the situation of significant changes in the energy ecosystem. Transformers Magazine was represented by our Editor-in-Chief, Dr Mladen Banovic.
Siemens Energy is ready to rise to the challenge of meeting the increasing demand for energy in an environmentally safe way – sustainably, affordably, and reliably with the breadth of its portfolio of energy solutions. As the partner of choice for government, business, and society, they aim to supply energy for societies worldwide, and thus enable successful and sustainable growth. They are active in generation, transmission, new energy (e.g., hydro), renewables (67 % stake in Siemens Gamesa), and industrial applications (with mostly #1 and #2 positions in these segments), generating an annual revenue of $34.2 B (€28.8 B) in FY 2019.
Overall, service is a highly resilient business and a core-value driver that generates more than 50 % of the company’s business today.
Important objectives of the strategy are to improve operations and ensure higher EBITA and more cash, and to secure the future portfolio with the focus on sustainability and service. R&D strategy is based on 15 R&D centres, about 5,000 R&D staff, around 18,400 patents and utility models, and a budget of $1.2 B (€1 B). There are strict capital return criteria for allocation with the focus on service and sustainability through co-creation and partnering in innovation.
Siemens Energy also plans to close plants in an effort to raise margins. “Production sites will be shut down,” a person close to the company said, adding Siemens Energy currently has around 75 factories globally that employ more than 50 staff each. The person said the company in some instances needed up to six production sites to put together and test certain components, adding this was too much.
Digitalisation is an important value driver with the objective to enable new digital revenue through Software as a service (SaaS) and asset agnostic offering. It will increase the value of offering by combining domain expertise with digital expertise, differentiating offering, and enabling internal digitalisation through automation of processes and strengthening the digital backbone.
Siemens Energy’s Board is organized with clear responsibilities. Mr. Bruch, the CEO, is focused on performance by a rigorous follow up of operational performance; organisation through clear accountabilities, lean structures and right people at right place; portfolio with clear decisions on underperforming portfolio elements; innovation through clear R&D allocation toward tangible returns and long-term potentials, and customers through co-creating projects and solutions.
In Bruch’s team, Maria Ferraro is the CFO with a clear focus on EBITA and cash, Jochen Eickholt is a Member of the Executive Board with the focus on better performance through operational excellence, and Tim Holt is a Member of the Executive Board with the focus on service and digitalisation as value drivers.
About Christian Bruch
Christian Bruch has been the President and CEO of Siemens Energy since May 2020. Before Siemens, he spent 16 years in Linde AG, a leading global industrial gases and engineering company with 2019 sales of $28 B (€25 B). He also worked for 4 years in RWE, an energy company with a revenue of $15.6 B (€13,1 B) in 2019 and spent 3 years at ETH Zurich.
Source: TM
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