Siemens 2014 Annual Report Download - page 183

247 D. Consolidated Financial Statements
337 E. Additional Information
213 C. Overall assessment of the economic position
214 C. Subsequent events
215 C. Sustainability and citizenship
225 C. Report on expected developments and
associated material opportunities and risks
242 C. Compensation Report and legal disclosures
242 C. Siemens AG (Discussion on basis
of German Commercial Code)

across the broad base of our portfolio, with the exception of
the acquisition of Invensys by Schneider Electric. Consolidation
in solution-driven markets is going in the direction of in-depth
niche market expertise, whereas consolidation of the product-
driven market follows the line of convergence. Most major
competitors have established global bases for their businesses.
In addition, competition has become increasingly focused on
technological improvements and cost position.
In fiscal , the broad overall market for the offerings of the
Infrastructure & Cities Sector grew slightly. The market for rail
systems showed growth, non-residential construction markets
were recovering, and the market for power grid solutions and
products remained challenging.
Markets served by the Transportation & Logistics Business
grew moderately in fiscal , fueled e.g. by large contract
awards in the U.K. and in Saudi Arabia within the Europe, C.I.S.,
Africa, Middle East region. Europe remained the largest market
for the Business. Growth in the Americas region benefited from
demand for passenger locomotives and urban transport prod-
ucts in the U.S. The Asia, Australia region showed the highest
growth rates of all regions. This growth was fueled, amongst
others, by a recovery in China, which began to increase its
investments in high-speed trains.
In fiscal , markets for our Power Grid Solutions & Prod-
ucts Business declined slightly year-over-year including weaker
demand from some emerging markets countries. Overall, the
decline is caused by weak demand in the Europe, C.I.S., Africa,
Middle East region. The market situation in southern Europe
remained particularly challenging. In Germany, which is under-
taking a massive shift to renewable energy (“Energie wende”),
utilities continued to delay major grid investments due to un-
certainty in the regulatory environment. The Americas re-
ported modest growth in real terms, particularly in the U.S.,
where the economy is gaining momentum in construction and
oil and gas markets. The overall market development was more
positive in the Asia, Australia region, particularly including
demand in the utility business within emerging economies.
Furthermore, markets in the oil and gas business and in the
non-residential construction business grew year-over-year, par-
ticularly in China.
In fiscal , markets addressed by our Building Technol-
ogies Division grew slightly in aggregate year-over-year. Within
our non-residential construction markets, some segments
developed more favorably than the market overall. Among
them were data centers and the pharmaceutical industry,
which showed clear growth in construction activities compared
to fiscal . Within Europe, non-residential construction
markets saw some stabilization in fiscal , but remained
weak due to the economic situation and austerity programs in
some southern and western European countries. In contrast,
markets in the Middle East, in Asia and Australia grew consid-
erably year-over-year. In the Americas, growth in non-residen-
tial construction markets began to accelerate during the fiscal
year. There is usually a time lag of three to four quarters be -
fore Building Technologies businesses begin to participate in
such growth.
Infrastructure & Cities principal competitors are multinational
companies. The Sector also faces competition from niche com-
petitors and from new entrants, such as utility companies and
consulting firms, exploiting the fragmented energy efficiency
market. The Sector’s solution businesses also compete with en-
gineering, procurement and construction providers, and com-
petitors in the service field often include small local players.
C.. Strategy
C... VISION 
In May , we presented our entrepreneurial concept
“ Vision .”
Shaped by our history, culture and values, our mission defines
how we understand ourselves. As an expression of a strong
brand, it formulates our aspiration: We make real what matters,
by setting the benchmark in the way we electrify, automate
and digitalize the world around us. Ingenuity drives us and
what we create is yours. Together we deliver.
There are three stages in which we will lead our Company into
the future:
>
In the short term, we want to “drive performance.” To
achieve this aim, we are retailoring our structures and re-
sponsibilities. We are also focusing on business excellence.
In addition, we want to get those businesses back on track
that have not reached their full potential and make them
competitive again.
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“Strengthen core” is our aim in the medium term. We in-
tend to strengthen our successful businesses along the value
chain of electrification by, among other things, allocating
resources in a more rigorous way in order to expand in
strategic growth fields.
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In the long term, we want to “scale up.” We will intensify our
efforts to seize further growth opportunities and tap new
fields.