Siemens 2014 Annual Report Download - page 176

108 A. To our Shareholders 131 B. Corporate Governance 171 C. Combined Management Report
172 C. Business and economic environment
187 C. Financial performance system
193 C. Results of operations
205 C. Financial position
210 C. Net assets position
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C... BUSINESS DESCRIPTION
Until September , , our business activities focused on
the four Sectors Energy, Healthcare, Industry and Infrastruc-
ture & Cities. In addition to these four Sectors, we had two addi-
tional reportable segments: Equity Investments and SFS. For
more information on the portfolio transactions described
below, see NOTE  in D. NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS.
Energy
The businesses of the former Energy Sector offer a wide spec-
trum of products, solutions and services for generating and
transmitting power, and for extracting, converting and trans-
porting oil and gas.
In fiscal , the Energy Sector comprised four Divisions:
Power Generation; Wind Power; Power Transmission; and
Energy Service. In addition, the Sector included two Sector-
led businesses: solar and hydro. Results for these businesses
were included in results for the Sector. Siemens has decided
to exit solar business activities after completing projects in
progress.
The businesses of our former Power Generation Division offer
an extensive portfolio of products and solutions for generating
electricity from fossil fuels and for producing and transporting
oil and gas. The Division’s customers include both energy pro-
viders and industrial companies. Due to the broad range of the
offerings, the Division’s revenue mix may vary from reporting
period to reporting period depending on the share of revenue
attributable to products, solutions and services. Because typical
profitability levels differ among these three revenue sources,
the revenue mix in a reporting period accordingly affects
Division profit for that period.
In May , we announced the acquisition of the Rolls-Royce
Energy aero-derivative gas turbine and compressor business
of Rolls-Royce plc, U.K. With the acquisition, we intend to
strengthen our position in the growing oil and gas industry as
well as in the field of decentralized power generation. In Sep-
tember , we have entered into an agreement with Dresser-
Rand to acquire all of its issued and outstanding common
shares by way of a friendly takeover bid. With its comprehen-
sive portfolio of compressors, steam turbines, gas turbines and
engines, Dresser-Rand is a leading supplier for the oil & gas,
process, power and other industries in the related energy infra-
structure markets worldwide. The acquisition complements our
existing offerings, notably for the global oil & gas industry and
for distributed power generation.
Beginning with fiscal , substantially all of the former Divi-
sion’s businesses will be included in the new Power and Gas
Division. Our solution business for the oil and gas industry will
be included in the new Process Industries and Drives Division.
The businesses of our former Wind Power Division manufac-
ture wind turbines for onshore and offshore applications, in-
cluding both geared turbines and direct drive machines. The
product portfolio is based on four product platforms, two for
each of the onshore and offshore applications. The revenue mix
of these businesses may vary from reporting period to report-
ing period depending on the project mix between onshore and
offshore projects in the respective period. Beginning with fiscal
, these businesses were combined with our solar and hydro
activities in the new Wind Power and Renewables Division.
The businesses of our former Power Transmission Division
provide energy utilities and large industrial power users
with turnkey power transmission solutions as well as discrete
products, systems and related engineering and services. These
offerings are 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 trans-
mission network. Beginning with fiscal , these businesses
are part of the new Energy Management Division.
The businesses of the former Energy Service Division offer
comprehensive services for products, solutions and technol-
ogies, covering performance enhancements, maintenance ser-
vices, customer trainings and consulting services for the for-
mer Divisions Power Generation and Wind Power. Financial
results relating to the Energy Service Division were included in
these Divisions. Beginning with fiscal , the Division was
renamed Power Generation Services. Results for that Division
will be included in the new Power and Gas and Wind Power and
Renewables Divisions.
Healthcare
Healthcare offers customers a comprehensive portfolio of
medical solutions across the treatment chain – from preven-
tion and early detection to diagnosis, treatment and follow-up
care. We are a major supplier of technology to the healthcare
industry worldwide and a trendsetter in medical imaging, labo-
ratory diagnostics, healthcare IT and hearing instruments. In
addition, we provide technical maintenance, professional and
consulting services, and, together with SFS, financing to assist
customers in purchasing our products.
In August , we announced our plan to sell our hospital
information system business to the U.S.-based company Cerner
Corp. Since the fourth quarter of fiscal , these activities
formerly included in the Healthcare Sector fulfilled the require-
ments to be reported as discontinued operations. Results for
prior periods are reported on a comparable basis.