Siemens Gas and Power is to be given complete independence and entrepreneurial freedom through a spin-off and subsequent stock market listing in the course of a sale to the shareholders ("spin-off"). The business comprises the activities in the fields of oil and gas, conventional power generation, power transmission and the associated service businesses. In addition, Siemens plans to contribute its majority stake (59%) in Siemens Gamesa Renewable Energy (SGRE) to the new company. A stock market listing is planned by September 2020. Siemens will relinquish its majority stake in the new company, but will remain a strong anchor shareholder. The stake will initially be slightly less than 50% and will not fall below the blocking minority in the long term.

Siemens will continue to support the company, for example through the professional services of Siemens Financial Services, the sales network of the Siemens regions or the licensing of the "Siemens" brand. An Extraordinary Shareholders' Meeting, probably in June 2020, will decide on the spin-off and subsequent stock market listing. Siemens will deconsolidate both the new GP and SGRE.

"By combining the performance spectrum of conventional generation with the power supply from renewable energies, we fully meet customer demand. This enables us to present an optimized and, if necessary, combined range of services from a single source. We are convinced that this strategic decision is positive for all parties involved and will enable us to create long-term value for customers, employees and shareholders," says CEO Joe Kaeser.

"By becoming independent, we can use our position of strength more effectively to support our customers in rapidly changing energy markets," says Lisa Davis, CEO of Siemens Gas and Power. She continues: "Being independent now gives us more freedom and flexibility. This allows us to concentrate fully on the requirements of the markets and customers. It also gives us full cost control. In the future, we will ensure that every euro we spend goes directly to our stakeholders," Davis continued.

Growth and increased efficiency planned

The operating companies Digital Industries (DI) and Smart Infrastructure (SI) will form the industrial core of Siemens in the future. This will be supplemented by the Group-wide technology and service units and the strategic majority stake in Siemens Healthineers. Siemens Mobility is also to be further strengthened as a growth business.

In addition to strengthening the portfolio structures, Siemens intends to significantly improve cost efficiency across all areas. The aim is to increase competitiveness and productivity. In the medium term, the annual growth rate of sales and the profit margin of the industrial business should each increase by two percentage points. Earnings per share should grow faster than sales in the medium term. In the long term, the profit margin of the core industrial business should reach 14% to 18% (adjusted EBITA margin).

Smart Infrastructure 's plan for increasing growth looks like this: Firstly, SI wants to strengthen the product business, particularly in Asia. Secondly, the service business is to be expanded. SI also intends to expand its activities in future fields such as infrastructure for electromobility, decentralized energy systems, intelligent buildings and energy storage - also with the help of greater use of digitalization solutions. This should lead to annual sales growth of 4 to 5% across the entire portfolio.

Digital Industries aims to strengthen its business in industrial digitalization and further expand its market leadership. The aim is to grow 25% faster than the market. As a result, up to 12,000 new employees are to be hired worldwide, mainly in production, research and development and sales. Profitability will be optimized, for example, through the integration of two divisions, the improvement of internal processes such as logistics, simplified controlling and the increased use of the company's own industrial software portfolio. "DI's clear goal is to grow faster than the market as a whole, even under more volatile economic conditions, and to continue to develop within the target margin corridor of 17 to 23%," said DI CEO Klaus Helmrich. DI is focusing its growth on the Digital Enterprise portfolio, future technologies such as edge and cloud computing, artificial intelligence and additive manufacturing. In addition, DI is focusing even more strongly on the industry requirements of the automotive and aviation industries, as well as the food and beverage, electronics, battery manufacturing, pharmaceutical and chemical sectors.