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Siemens occupies outstanding positions in many markets. Our actions are driven by market dynamics and therefore also by the requirements of our customers. We want to continually outperform our competitors and, as market leader, set the standards for operating and financial performance in our industries. With a financial target system and the goal of continuous improvement relative to the market and our competitors, One Siemens is providing the framework.
Our pioneering spirit is the basis of our success. Our activities are focused on establishing leading positions in innovation-driven markets and markets with long-term growth potential. We want to play a leading role in these markets. To this end, we’ve formulated three focus areas:
Be a pioneer in technology-driven markets
We’ve been living from innovative engineering achievements for 166 years, continuously tapping new markets and occupying new growth fields. To enhance this special strength, we’re concentrating on innovation-and technology-driven growth markets with potential for our future core business. We’re strengthening our power of innovation by leveraging synergies worldwide and increasingly utilizing external expertise.
We’ve opened our lab doors to universities, research institutes and industry partners. About 1,000 research partnerships a year enable us to respond quickly to the new requirements of local and global markets.
Strengthen our portfolio
Only by keeping our portfolio focused on attractive future-oriented markets can we achieve profitable longterm growth. That’s why we practice active, systematic portfolio management. The cornerstone of our portfolio policy is the principle that all our businesses must capture and maintain No. 1 or No. 2 positions in their respective markets. The basis of our profitability and growth, these leading positions enable us to sustainably increase Siemens’ value. As sources including our corporate history confirm, we’ve always been particularly successful when we’ve been at the forefront of technological innovation. Size alone is not enough to ensure our long-term success. This is the guiding principle of all significant changes in our portfolio.
Provide a leading environmental portfolio
Our Environmental Portfolio, which bundles products and solutions that contribute to environmental and climate protection, has captured an outstanding position on the technology market worldwide and is one of our strategic growth drivers. In fiscal 2013, the Portfolio generated revenue of €32.3 billion and made a substantial contribution to climate protection. At the same time, our ecofriendly products and solutions enabled customers worldwide to slash their CO2 emissions by 377 million tons – an amount equal to the combined total annual CO2 emissions of the following twelve cities: Berlin, Cape Town, London, Los Angeles, Melbourne, Mexico City, Moscow, New York City, São Paulo, Seoul, Singapore and Tokyo.
Siemens is close to its customers throughout the world. Because proximity to the market is an important driver of sustainable growth. And we’ll ensure this in the future. Our focus areas are:
Grow in emerging markets
The so-called BRIC countries (Brazil, Russia, India and China) and the up-and-coming nations of Asia, South America and the Middle East are achieving high levels of economic growth, in which we intend to participate. Over the past few years, we’ve achieved strong growth in the emerging countries. The demand for economical products and solutions tailored to local customer requirements is particularly strong in these countries. To meet this challenge, we’ve launched our SMART (simple, maintenance-friendly, affordable, reliable and timely-to-market) initiative, which offers new products targeted for the entrylevel segment.
Expand our service business
To get closer to our customers – for us, this means providing outstanding services that increase customer value. With our comprehensive service offerings, we want to achieve the kind of long-lasting customer satisfaction that makes us the first choice for follow-up investment. It’s not only our sales organization that nurtures close relationships with our customers and fosters their loyalty; above all, it’s our local service employees, who – in some instances building on relationships that go back decades – have detailed knowledge of our customers’ needs and requirements. For these reasons, services are a key component of our growth strategy, making major contributions to our profitability.
Intensify our customer focus
Our customers expect comprehensive, single-source consulting that’s geared to their particular needs. And it’s our goal and our obligation to meet this expectation everywhere in the world. For us, a strong customer focus doesn’t just mean having an in-depth understanding of our customers’ unique requirements; it also means providing them with customized solutions.
We’ll continue to leverage our global orientation, size and structure for the benefit of our customers, suppliers and employees. Our outstanding and innovative employees are one of our greatest strengths. The focus areas that will help us use the power of Siemens even more fully are the following:
Encourage lifelong learning and development
One of our greatest strengths is our outstanding workforce. Our employees’ expertise, skills and dedication have made Siemens the company it is today. Building on this foundation, we’re aiming to grow even further. And one means to achieving this strategic end quickly and effectively is continuous learning, which not only enhances our people’s knowhow but also directly fosters their pioneering spirit, initiative and willingness to assume increasing responsibility. All around the world, we give our people at all levels the chance to fully develop their potential.
Empower our diverse and engaged people worldwide
Siemens is a global powerhouse with a highly diverse workforce. People from 140 countries are working at our ten largest Regional Companies alone. That’s why we take a systematic approach to championing diversity at Siemens. Multifaceted teams of employees with a broad range of skills, experience and qualifications promote the wealth of ideas at our Company and strengthen our power of innovation.
Motivated employees are what make Siemens strong. To find out how we can further boost workforce motivation, we regularly conduct employee surveys worldwide in 39 languages. The survey input is systematically applied to enhance our processes.
Stand for integrity
We’re committed to fair competition. In our efforts to succeed on the world’s markets, we aim to comply with all applicable laws and regulations. Ethical business conduct is a non-negotiable component of our corporat culture. We’ve formulated transparent and binding principles of behavior and taken a clear and unmistakable position in the battle against corruption. We also fulfill our responsibilities to society, the environment and our employees. For us, occupational safety, health management and the conservation of natural resources are all part of ethical business conduct.
One Siemens defines metrics for revenue growth, capital efficiency, profitability and the optimization of our capital structure. Taken together, these indicators comprise a balanced system that provides the basis for generating a sustainable increase in our value.
To achieve this aim, we’ve set a number of concrete goals. First, we want revenue growth at all our businesses to outpace that of our competitors. Second, we want our growth to be capital-efficient. That’s why we’ve defined an ambitious target corridor for return on capital employed. At the Sector level, we want to continuously achieve top margins compared to our competitors across industry cycles. And third, we’ve set a target for our capital structure that will enable us to achieve sustainable, strongly based profitability.