Siemens 2013 Annual Report Download - page 172

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

wind turbines, and the oil and gas industry. Through strong
and continuing innovation efforts, it aims to ensure the tech-
nological leadership of its products, solutions and services. The
Sector is active on a global basis with special emphasis on cer-
tain countries and regions such as the U.S., China, the Middle
East, and Europe. The Sector aims to ensure its market position
through a balanced business model that includes not only
highly competitive products, but also comprehensive solutions
which demonstrate its integration competence. This offering is
supplemented by strong services which help the Sector secure
customer proximity and enable a constant flow of revenue.
Our Healthcare Sector strives to be the pioneer in next-gener-
ation healthcare. It aims to outpace its respective markets and
generate high returns by helping customers gain efficiencies
in healthcare delivery. These efficiencies are a key imperative
in meeting globally increasing demand for healthcare in bud-
get-constrained environments. In anticipation of increased
demand in economically challenging times, the Sector had
launched and completed “Agenda ,” which started in fiscal
 and was implemented by the end of fiscal . “Agenda
” was a program to drive innovation and competitiveness
across the portfolio, to broaden the regional footprint and to
drive people excellence across the Sector.
Healthcare constantly renews its portfolio to ensure that it
meets the future needs of its customers, both in terms of qual-
ity and price, and to continuously improve its cost position.
The Sector endeavors to improve operational excellence in its
various businesses, and make use of new growth opportuni-
ties in healthcare. These opportunities arise from closer inte-
gration between diagnostics and therapy, and increasing
demand from emerging markets. The Sector’s integrated ap-
proach covers the entire medical treatment chain – from pre-
vention and early detection to diagnosis, therapy and aftercare.
It combines medical imaging and therapy systems, laboratory
diagnostics and healthcare IT systems.
The Industry Sector aims to drive the productivity, efficiency
and flexibility of its customers by seamlessly integrating the
industry value chain. It is pursuing its strategic path to be-
come a provider of a comprehensive portfolio of industrial
software and IT solutions. This portfolio will cover the entire
industrial product design and production lifecycle. The Sector
also continues to add vertically integrated products and appli-
cations in automation, drive train systems and service. Its on-
going strategic approach is to continuously drive innovation
and seamlessly integrate the different software for product de-
sign, engineering, and collaboration with digital manufactur-
ing and production execution. The Sector is an established
player in discrete manufacturing industries such as the auto-
motive industry and aims to grow its business in hybrid and
process industries (e.g. food and beverage).
The drive train system business in manufacturing and process
industries, and energy and infrastructure builds on the integra-
tion of gears, motors, inverters and motion control and is seam-
lessly integrated with the Sector’s software and IT solutions.
The Sector’s product business is complemented by its service
business: in addition to servicing its installed base, the Sector
is growing technology based value-added services such as
energy and environmental services. In its solution business, it
offers a complete set of solutions for specific industries such
as Automotive. In addition, its Metals Technologies Business
Unit – a life-cycle partner for customers of metallurgical plants –
drives innovation and continues to expand its presence in
emerging countries. Regionally, the core markets of the Sector
are in developed and emerging economies with a large indus-
trial base, in particular in Ger many, China and the U.S.
The strategy of Infrastructure & Cities Sector is to focus on
three areas: strategies to grow beyond; effective go-to-market;
and profitability of the core business.
In the focus area to grow beyond, the Sector defines its offer-
ings for targeted growth markets. One focus is to increase the
offering of entry-level products. In addition, the Sector aims to
increase market shares for its vertical IT and software-based
business, and for its intelligent infrastructure solutions. It also
strives for focused capital allocation and portfolio expansion.
In the effective go-to-market area, the Sector aims to strength-
en its sales approach in the city and infrastructure markets,
e.g. by addressing infrastructure customers through one lead
Division. Another focus area is to secure and improve the prof-
itability of the Sector. Levers for this area are flawless order
backlog execution; rigorous working capital management; ex-
cellence in procurement; an increase in global value sourcing;
containing selling, general and administrative expenses; es-
tablishing lean processing; and maintaining a global focus on
employee development and recruiting.