Hottest Siemens releases 2020 company vision

2022-08-22
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Siemens releases "2020 company vision"

more employees share the company's success. Siemens will allocate up to 400million euros per year for the employee stock plan depending on business performance

it is about to launch a stock with a total repurchase of up to 4billion euros of certified compostable polymer ecoflex and polylactic acid (PLA)

Beijing, China, May 7, 2014. Siemens AG will focus on electrification, automation and digitalization in the future. In these value chains, Siemens has identified several growth areas with its most long-term potential. The company is leaning towards these growth areas in terms of resource allocation, and has announced practical measures in this direction. These initiatives include the acquisition of a major part of Rolls Royce's energy business and the preparation for the listing of its hearing business. At the same time, Siemens is achieving a more flat organizational structure and enhancing customer orientation. This is Siemens' vision for 2020

Joe KAESER, President and CEO of Siemens AG, said: the 2020 company vision reflects our long-term understanding of the contemporary electrification and automation value chain. We further promote the company's success through shareholding, which will create a sustainable ownership culture for Siemens

the company will expand the employee stock plan below the senior management level and increase the number of employees holding shares by at least 50% to more than 200000. To this end, Siemens will arrange shares of up to 400million euros per year according to the company's business performance. In addition, the previously announced share repurchase plan with a total amount of up to 4billion euros will also be launched

taking electrification, automation and digitalization as the focus of the future is based on the conclusion of in-depth and extensive analysis since August 2013. Siemens can achieve long-term growth and high profits in these areas with its products and unique technology

in the field of electrification and automation, Siemens has clearly occupied the first place in many markets. Thanks to the growth of demand for reliable and sustainable power supply, the growth points of these two businesses include small gas turbines and offshore wind turbines. For example, the process industry offers Siemens an attractive opportunity to take full advantage of its automation and drive solutions. The unconventional oil and gas production market also provides Siemens with considerable growth potential

Siemens plans to fully explore the potential of digital development, including manufacturing. Using software and simulation, the digital factory has greatly improved the speed and efficiency of product development as a whole. Data based services, software and it solutions are crucial and will have a far-reaching impact on Siemens' overall business development in the future

in order to fully explore the market in these fields, NCC, founded in 2012, currently covers an area of 17500m2, and Siemens is restructuring its organizational structure. From October 1, 2014, the company will streamline its organization, cancel the level of business sector, and merge the existing 6 business groups of 1 vulnerable component 5: sheet metal into 9. In addition, the medical business will operate independently in the future. This means that regional organizations can be set up according to the needs of the local medical market without following the company's organizational structure. This will make the medical business more flexible, so as to better adapt to the major changes and pattern changes in the medical technology market. As part of the restructuring, Siemens is also preparing to spin off its hearing business

by integrating the company's business groups and eliminating the level of business areas, the company will reduce internal redundancy, reduce costs and accelerate the decision-making process. In addition, the company's functional departments, such as human resources and corporate communications, will also be streamlined in the future to achieve centralized management. These measures aimed at improving the company's efficiency are expected to save the company about 1billion euros per year and will take full effect at the end of fiscal 2016. In order to continuously optimize costs, the company has set a new overall cost-effectiveness target: to maintain a level of 3% to 5% per year from fiscal year 2015

from the beginning of fiscal year 2015, the company will set a certain range of target profit margin for each business group, which excludes the impact of the purchase price allocation factor (PPA), that is, it does not include the cost of amortization of intangible assets related to the acquisition. These targets will be set with reference to the profit margin level of the main competitors of each business group

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