Siemens 2013 Annual Report Download - page 163

253 D. Consolidated Financial Statements
357 E. Additional Information
245 C. Compensation Report, Corporate Governance
statement pursuant to Section a of the
German Commercial Code, Takeover-relevant
information and explanatory report
246 C. Siemens AG ( Discussion on basis of
German Commercial Code)
250 C. Notes and forward-looking statements

process industries, the energy and the infrastructure sector
and activities of the Metals Technologies Business Unit.
Competitors of the Industry Sector can be grouped into two
categories: multinational companies that offer a relatively
broad portfolio, and companies that are active only in certain
of the geographic or product markets served by the Industry
Sector. The Sector’s principal competitors with broad portfolios
are multinational companies such as ABB, Emerson Electric,
Schneider Electric and Rockwell. In the industries in which the
Sector is active, consolidation is occurring on several levels. In
particular, suppliers of automation solutions have supple-
mented their activities with actuator or sensor technology,
while suppliers of components and products have supple-
mented their portfolio with complementary products for their
sales channels.
The main competitors of the Industry Automation Division
are ABB, Schneider Electric, Rockwell and Emerson Electric.
Within its product lifecycle management business, the Divi-
sion also competes with, among others, Dassault Systèmes
and PTC. Competitors of the Drive Technologies Division in-
clude companies with broad business portfolios such as ABB,
Emerson Electric and Mitsubishi Electric but also specialist
companies such as Fanuc, Yaskawa, WEG and SEW. The main
competitors of the Metals Technologies Business Unit are
Danieli and SMS.
Asian competitors are generally focused on large-scale produc-
tion and cost-cutting. European and U.S. competitors are typi-
cally focused on high-quality lifecycle service. Nevertheless,
most major competitors have established global bases for their
businesses. In addition, competition in the field has become
increasingly focused on technological improvements and
price. Intense competition, customer budget constraints and
rapid technical progress within the industry continue to cause
significant downward pressure on prices. In addition, competi-
tors continue to shift their production to low-cost countries.
Infrastructure & Cities
The Infrastructure & Cities Sector offers a wide range of tech-
nologies for increasing the sustainability of metropolitan cen-
ters and urban infrastructures worldwide, such as integrated
mobility solutions, building and security systems, power
distribution equipment, smart grid applications and low and
medium-voltage products. While the Sector has decided to
divest its airport logistics and postal automation business, it
has acquired the rail automation business of Invensys plc.,
U.K. (Invensys) to expand and complement its rail automation
business.
External revenue of the Infrastructure & Cities Sector was
€. billion in fiscal , representing % of Siemens reve-
nue. The following chart provides a geographic breakdown of
the Infrastructure & Cities Sector’s external revenue in fiscal
.
The Sector consists of five Divisions: Rail Systems; Mobility
and Logistics; Low and Medium Voltage; Smart Grid; and Build-
ing Technologies. Financial results of the Rail Systems and the
Mobility and Logistics Divisions are combined and reported
together as the results of the Sector’s Transportation & Logistics
Business. Financial results of the Divisions Low and Medium
Voltage and Smart Grid are combined and reported together as
the Sector’s Power Grid Solutions & Products Business.
The Rail Systems Division comprises Siemens’ rail vehicle
business, encompassing the entire spectrum of rolling stock –
including high-speed trains, commuter trains, passenger
coaches, metros, people movers, light rail vehicles, locomo-
tives, bogies, traction systems and rail-related services. The
Division combines its expertise in the fields of mass transit,
regional and long-distance transportation, driverless systems,
traction systems, bogies and onboard power supplies in order
to offer comprehensive know-how for sustainable, efficient
and reliable rail vehicles.
The Mobility and Logistics Division primarily provides prod-
ucts, solutions (including IT solutions) and services for rail
transportation operating systems, such as central control sys-
tems, interlockings and automated controls. The Division also
provides offerings for road traffic, including traffic detection,
information and guidance systems. In fiscal , the Division
announced its plans to divest its airport logistics business for
cargo tracking and baggage handling and its postal automa-
tion business for letter and parcel sorting. In fiscal , the
Division acquired the rail automation business of Invensys,
which has a leading position as provider of signal services and
rail control and communication solutions.
Revenue share in % (location of customer)
1 Commenwealth of Independent States.
Americas: %
therein U.S.: %
Asia, Australia: %
Europe, C.I.S.,
Africa, Middle East: %
therein Germany: %