Siemens 2012 Annual Report Download - page 142

1 A. To our Shareholders
21 B. Corporate Governance 49 C. Combined Management Report
50 C. Business and economic environment
64 C. Financial performance measures
69 C. Results of operations
82 C. Financial position
93 C. Net assets position
95 C. Overall assessment of the economic position
96 C. Subsequent events
97 C. Sustainability
111 C. Report on expected developments and
associated material opportunities and risks

...  
Energy
The Energy Sector offers a wide spectrum of products, services
and solutions for the generation and transmission of power, and
the extraction, conversion and transport of oil and gas. It primar-
ily addresses the needs of energy providers, but also serves in-
dustrial companies, particularly in the oil and gas industry.
External revenue of the Sector was €. billion in fiscal
, representing % of Siemens revenue. The following
chart provides a geographic breakdown of the Sector’s exter-
nal revenue in fiscal .
At the end of fiscal , the Energy Sector comprised the fol-
lowing five Divisions: Fossil Power Generation; Wind Power;
Oil & Gas; Power Transmission and Energy Service. In the
fourth quarter of fiscal , Siemens decided to divest its so-
lar thermal business and photovoltaic business (solar busi-
ness). Following the decision the solar thermal and photovol-
taic businesses are reported as discontinued operations for all
periods covered in this annual report. Energy formed a new
Sector-led unit, Hydro & Storage. This unit comprises the Sec-
tor’s hydro power generation activities including its minority
stake in Voith Hydro Holding GmbH & Co. KG as well as its en-
ergy storage devices.
The Fossil Power Generation Division offers high-efficiency
products and solutions for fossil-based power generation. The
offering extends from gas and steam turbines and generators
to complete turnkey power plants. The Division concentrates
on gas and steam turbines and turbo generators, including
control systems, in the larger power range, with an emphasis
on combined-cycle (gas and steam) power plants, heat recov-
ery steam generators, steam power plants and conventional is-
lands for nuclear power plants. It also develops solutions for
instrumentation and control systems for all types of power
plants and for use in power generation, including information
technology solutions providing management applications
from the plant to the enterprise level and is working on the de-
velopment and production of systems based on emerging
technologies such as integrated gasification and carbon cap-
ture and storage. In fiscal , the Division acquired the
NEM B.V. business, a specialist in heat recovery steam genera-
tors for combined-cycle power plants. To further expand its
global
gas turbine manufacturing network, Fossil Power Gener-
ation launched a subsidiary, Siemens Gas Turbine Technologies
Holding B.V. in fiscal . The Division has a % stake in the
subsidiary. As part of the transaction, Fossil Power Generation
completed the sale of its % interest in OAO Power Machines,
Russia. The Division is represented in a number of joint ventures
in China, including Shanghai Electric Power Generation Equip-
ment in which Fossil Power Generation holds a stake of %.
The Wind Power Division manufactures wind turbines with a
power rating ranging from . megawatts to . megawatts
and rotor diameters spanning  to  meters for on- and off-
shore applications. It also provides services to off- and onshore
wind farms. The Division holds a % equity stake in a joint
venture with Dong Energy A/S, ASea A/S, a supplier of installa-
tion services for the construction of offshore wind-farms. In
fiscal , the Division entered into agreements for two joint
ventures with Shanghai Electric Group (SEG) for the produc-
tion and sales of wind turbines in China.
The Oil & Gas Division supplies highly efficient small and me-
dium gas and steam turbines for industrial power generation
and mechanical drives as well as turbo compressors for a broad
range of applications to the oil and gas industries, the process
industry and other industries. The Oil & Gas Division further of-
fers a variety of automation and electrical products, systems
and solutions for field, production and management levels, en-
terprise intelligence solutions for safe and reliable operation,
planning, scheduling and life-cycle services, including feasibil-
ity studies, as well as design and performance enhancement
programs. In addition, the Division offers a broad range of wa-
ter treatment, (re-)injection and management systems for on-
shore installations and for fixed and floating facilities offshore.
Recent acquisitions, including all of the shares of five entities
constituting the Connectors & Measurements business of Expro
Holdings UK  Ltd., help the Division to strategically expand its
range of products, solutions and consulting services for sub-
sea activities.
The Energy Service Division offers comprehensive services,
including parts and components, for complete power plants
including on- and offshore wind farms as well as rotating ma-
chines such as gas and steam turbines, generators and com-
pressors. It provides these services using advanced plant diag-
nostics and systems engineering. The Division also offers pow-
er plant maintenance and operation services and emissions
control services and systems. Financial results relating to the
Energy Service Division are reflected in the Fossil Power Gen-
eration Division, the Oil & Gas Division and the Wind Power
Division and are therefore not reported separately.
    (  )
1 Commonwealth of Independent States.
Europe, C.I.S.,
Africa, Middle East: 51%
therein Germany: 7%
Asia, Australia: 19%
Americas: 30%
therein U.S.: 20%