Strengthen our portfolio
Only by keeping our portfolio focused on attractive future-oriented markets can we achieve profitable long-term 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 were 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.
In addition to organic growth, we also strengthen our core business through acquisitions. For example, we acquired the Norwegian subsea specialists Bennex and Poseidon in March 2011. These companies specialize in equipping deep-sea oil and natural gas suppliers, providing, for example, products and solutions for power grids deployed at depths of up to 3,000 meters. Leveraging this expert knowhow and our traditional core competencies in electrical engineering, we intend to establish ourselves as a leading supplier of subsea power grid solutions in the medium term.
To continue driving our booming business in India and boost its influence on our operations on the subcontinent, Siemens AG increased its stake in our publicly listed Indian Regional Company from 55.3% to 75% in fiscal 2011. At the end of 2010, we announced the takeover of the Russian financing company DeltaLeasing. An important step in the international growth strategy of our cross-Sector activity Financial Services (SFS), this acquisition will position SFS as a key player in major project financing on the high-growth Russian market.
We’re also tightening the focus of our portfolio on the IT market. In the future, we intend to concentrate primarily on vertical software solutions, which ideally complement and round off our other businesses. Our software solutions enable applications such as computer-aided automobile and airplane model design, power plant monitoring and controlling, and the visualization of CT results. No other company has the industry expertise and technology competence we do – and it’s our customers who reap the greatest benefit. With the sale of Siemens IT Solutions and Services to Atos S.A. (AtoS), we’ve withdrawn from the conventional IT services business. As part of this transaction, Siemens will retain a 15% stake in AtoS, thus remaining a strategic stakeholder in the venture.
These measures illustrate how our forward-looking portfolio policy is strengthening our profile and gearing it to innovation-driven growth markets.