Siemens 2013 Annual Report Download - page 158

92 A. To our Shareholders
117 B. Corporate Governance 155 C. Combined Management Report
156 C. Business and economic environment
173 C. Financial performance system
179 C. Results of operations
192 C. Financial position
204 C. Net assets position
207 C. Overall assessment of the economic position
209 C. Subsequent events
210 C. Sustainability
227 C. Report on expected developments and
associated material opportunities and risks

In fiscal , the Energy Sector comprised five Divisions: Fossil
Power Generation; Wind Power; Oil & Gas; Power Transmission;
and Energy Service. In addition, the Sector includes two sec-
tor-led businesses: Solar and Hydro. Results for these business-
es are included in results for the Sector. Siemens has decided
to exit solar activities after completion of projects under execu-
tion. In the Hydro business, we are active in small and large
hydro power stations, via our minority stake in Voith Hydro
Holding GmbH & Co. KG. Furthermore, our Hydro business also
comprises our activities in ocean power tidal turbines. As of
fiscal , the Fossil Power Generation Division and the
Oil & Gas Division were combined into a single Division under
the name Power Generation.
The Fossil Power Generation Division offers high-efficiency
products and solutions for fossil-based power generation.
These solutions include substantial innovation and engineer-
ing know-how aimed at converting fossil fuels to power with
high efficiency, which increases return on investment for cus-
tomers and helps them improve their environmental perfor-
mance. The Division concentrates on products and solutions
for gas and steam turbines, turbo generators, heat recovery
steam generators including control systems, with an empha-
sis on combined-cycle power plants. It also develops solutions
for instrumentation and control systems for all types of power
plants and for use in power generation. These solutions in-
clude information technology solutions providing manage-
ment applications from the plant to the enterprise level. The
Division is also working on developing and producing com-
mercial systems based on emerging technologies such as
integrated gasification, coal liquefaction, and carbon capture
and storage. Due to the broad range of the Division’s offer-
ings, the revenue mix may vary from reporting period to
reporting period depending on the share of revenue attribut-
able to products, solutions and services and the revenue’s re-
gional distribution in the respective periods. As mentioned
above, as of fiscal , the Fossil Power Generation Division
was combined with the Oil & Gas Division to form the new
Power Generation Division.
The Wind Power Division manufactures wind turbines for on-
shore and offshore applications, including both geared tur-
bines and direct drive machines. The product portfolio is based
on four product platforms, two for each of the onshore and off-
shore applications. The onshore products have power ratings
between . to . megawatts and rotor diameters ranging
from  to  meters. The power rating for offshore products
ranges from . to . megawatts, with rotor diameters rang-
ing from  to  meters. The revenue mix of the Division
may vary from reporting period to reporting period depending
on the project mix between onshore and offshore projects in
any given period. A significant part of the Division’s business
activities take place offshore and in countries in the northern
hemisphere. Therefore, its production and sales figures are
typically higher during the hemisphere’s spring and summer
months, when weather conditions facilitate the installation of
wind turbines.
The Oil & Gas Division has a comprehensive portfolio of
highly efficient rotating machinery (gas turbines, steam
turbines, compressors with associated equipment) and elec-
trical, instrumentation and telecommunication (EIT) solu-
tions. This portfolio is the basis of our offerings to all our
markets, predominantly the oil and gas industry, process
industry and industrial power generation industry for appli-
cations ranging from cogeneration to offshore production,
water treatment and subsea processing. As mentioned
above, as of fiscal , the Oil & Gas Division was combined
with the Fossil Power Generation Division to form the Power
Generation Division.
The Power Transmission Division provides customers with
turnkey power transmission solutions as well as discrete prod-
ucts, systems and related engineering and services. It covers
high-voltage transmission solutions, power and distribution
transformers, high-voltage switching and non-switching prod-
ucts and systems, and innovative alternating and direct cur-
rent transmission systems. The Division supplies energy utili-
ties and large industrial power users with equipment, systems
and services used to process and transmit electrical power
from the source, such as power plants and onshore and off-
shore wind farms, to various points along the power transmis-
sion network. The Division is working with joint ventures in
China involving different partners and has a joint venture with
Infineon Technologies in Germany for the design, manufac-
ture and sale of high-performance semiconductors.
The Energy Service Division offers comprehensive services
for products, solutions and technologies, covering perfor-
mance enhancements, maintenance services, customer train-
ings and consulting services for the Divisions Fossil Power
Generation, Wind Power and Oil & Gas. Financial results relat-
ing to the Energy Service Division are included in these Divi-
sions.
The Energy Sector distributes its products and services through
its own dedicated sales force, supported by Siemens’ world-
wide network of regional companies. Additional sales chan-
nels include joint ventures and licensing partners, especially
in markets requiring a high degree of local knowledge.