Siemens 2014 Annual Report Download - page 178

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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industries, the former Energy Power Generation Division’s
oil & gas solutions business is part of the new Process Indus-
tries and Drives Division. The former Customer Services
Division is managed within the new Digital Factory Division.
Infrastructure & Cities
The businesses of the former Infrastructure & Cities Sector of-
fer a wide range of technologies that increase the functionality
and sustainability of metropolitan centers and urban infra-
structures worldwide, such as integrated mobility solutions,
building and security systems, power distribution equipment,
grid automation and control products and solutions, smart grid
applications and low and medium-voltage products. We apply
our IT and automation expertise to optimize infrastructures –
making better use of existing systems and reducing operating
costs while increasing energy efficiency and improving safety
and security.
In fiscal , the Sector consisted of five Divisions: Rail Sys-
tems; Mobility and Logistics; Low and Medium Voltage; Smart
Grid; and Building Technologies. Financial results of the Rail
Systems and the Mobility and Logistics Divisions were com-
bined and reported together as the results of the Sector’s Trans-
portation & Logistics Business. Financial results of the Divisions
Low and Medium Voltage and Smart Grid were combined and
reported together as the Sector’s Power Grid Solutions & Prod-
ucts Business.
The offerings of the former Rail Systems Division comprise
Siemens’ rail vehicle business – including high-speed trains,
commuter trains, passenger coaches, metros, people movers,
light rail vehicles, locomotives, bogies, traction systems and
rail-related services. We combine our expertise in the fields of
mass transit, regional and long-distance transportation, driver-
less systems, traction systems, bogies and onboard power
supplies in order to offer comprehensive know-how for reliable
and efficient rail vehicles.
The business activities of the former Mobility and Logistics
Division hold leading positions as global providers of the inte-
grated technologies that enable people and goods to be trans-
ported safely, efficiently and in an environmentally friendly
manner. Our offerings encompass rail automation and intelli-
gent traffic and transportation systems. The products, services
and IT-based solutions in our portfolio combine innovation
with comprehensive industry know-how. In fiscal , our of-
ferings also comprised our airport logistics business for cargo
tracking and baggage handling and our postal automation
business for letter and parcel sorting. In the third quarter of
fiscal , Siemens announced that it no longer intends to sell
this business. The activities are to be carved out and operated
as a separate business under the Siemens umbrella so that this
business can operate better and more flexible in its medium-
sized competitive environment. Beginning with fiscal , the
airport logistics and postal automation business is reported
within Centrally managed portfolio activities, which are part of
the Reconciliation to Consolidated Financial Statements.
The principal customers of the businesses included in our for-
mer Rail Systems and Mobility and Logistics Divisions are pub-
lic and state-owned companies in the transportation and logis-
tics sectors. Markets served by these businesses are driven
primarily by public spending. Customers of these businesses
usually have multi-year planning and implementation hori-
zons, and their contract tenders therefore tend to be indepen-
dent of short-term economic trends.
Beginning with fiscal , the business activities of the former
Rail Systems and Mobility and Logistics Divisions are combined
to form the Mobility Division. The Mobility Division also includes
the rail electrification business of the former Smart Grid Division.
The business activities of the former Low and Medium Volt-
age Division supply public energy providers, industrial compa-
nies and municipal utilities with a complete range of products,
systems and solutions for power distribution infrastructures.
Our portfolio includes highly reliable power supply solutions
for conventional power plants and renewable energy systems
as well as intelligent, compact substations for urban and rural
distribution networks. We also offer energy-efficient solutions
for heavy industry, the oil & gas industry and the process
industry. Energy-efficient solutions and energy storage systems
for the integration of renewable energies into power grids
round off our portfolio. Business activities included in our Low
and Medium Voltage Division generally tend to react quickly to
changes in the overall economic environment.
Beginning with fiscal , the business activities of the former
Low and Medium Voltage Division are included in the new
Energy Management Division.
The business activities of the former Smart Grid Division offer
power providers, network operators, industrial enterprises and
cities an end-to-end portfolio of products and solutions for
developing intelligent grid infrastructures. Smart grids enable
a bidirectional flow of energy and information. They are re-
quired for the integration of more renewable energy sources
into conventional power transmission and distribution net-
works. In addition, power providers can run their plants more
efficiently with data gained from smart grids. Software solu-
tions that analyze data from smart grids will continuously gain
importance. Our offerings include both in-house technology
development and systems from software partners. The principal
customers are power producers, grid operators, multi utilities,