Siemens 2015 Annual Report Download - page 5

Combined Management Report 
and renewable energy systems as well as substations for urban
and rural distribution networks. We also offer energy-efficient
solutions for heavy industry, the oil and gas industry and the
process industries. The portfolio is rounded off by solutions
and energy storage systems for integrating renewable energy
into power grids, together with vertical IT software applica-
tions that link energy consumers and producers.
The Building Technologies Division is a leading provider of
automation technologies and services for safe, secure and effi-
cient buildings and infrastructures throughout their lifecycles.
The Division offers products, solutions and services for fire
safety, security, building automation, heating, ventilation, air
conditioning and energy management. The large customer
base is widely dispersed. It includes public and commercial
building owners, operators and tenants, building construction
general contractors and system houses. Changes in the over-
all economic environment generally have a delayed effect on
the Division’s business activities. Particularly in the solutions
and service businesses, Building Technologies is affected by
changes in the non-residential construction markets with a
time lag of two to four quarters.
The Mobility Division combines all Siemens businesses in
the area of passenger and freight transportation, including rail
vehicles, rail automation systems, rail electrification systems,
road traffic technology, IT solutions and related services. The
Division also provides its customers with consulting, plan-
ning, financing, construction, service and operation of turnkey
mobility systems. Integrated mobility solutions for networking
of different traffic systems round off Mobility’s offerings. The
principal customers of the Mobility Division are public and
state-owned companies in the transportation and logistics sec-
tors. Markets served by Mobility are driven primarily by public
spending. Customers usually have multi-year planning and
implementation horizons, and their contract tenders therefore
tend to be independent of short-term economic trends.
The Digital Factory Division offers a range of products and
system solutions for automation technologies and industrial
controls used in manufacturing industries. The Division is a
leading provider of industry software together with a compre-
hensive product and service portfolio that covers all aspects of
“Industrie .” – a German high-tech industrial strategy. The
Division supports customers in transforming their traditional
companies into digital enterprises, in increasing the flexibility
and efficiency of their production processes and in reducing
the time to market for new products. The Division’s lifecycle
services and data-driven services complement its products and
system solutions. The Divisions’ offerings are geared largely
to the manufacturing industry and its major markets such as
automotive, aerospace, machine tools and plant installations.
Because demand depends directly on the investment decisions
of end customers as well as indirectly on orders from OEMs, a
downturn or upswing in the overall economic environment
impacts the Division’s business results more timely than those
of other Siemens businesses.
The Process Industries and Drives Division offers its custom-
ers standard products including converters, gears, motors,
drives and couplings on the one hand and also customized, ap-
plication-specific systems and solutions on the other hand. In
addition, the Division supplies machine-to-machine communi-
cation products and sensors that measure pressure, tempera-
ture or flow rate for example. The Division’s products, systems
and industry-specific solutions as well as end-to-end services
are designed to increase productivity, energy efficiency and re-
liability of machinery and installations, mainly in industries
such as oil & gas, shipbuilding, mining, cement, pulp and paper,
chemicals, food and beverage, and pharmaceuticals. In addi-
tion, the Division sells gears, couplings and drive solutions to
other Divisions of the Siemens Group, which use them in rail
transport and wind turbines. Demand within the industries
served by the Division generally shows a delayed response to
changes in the overall economic environment. Even so, the
Division is strongly dependent on investment cycles in its key
industries. In basic process industries such as oil & gas or min-
ing, these cycles are driven mainly by commodity price fluctu-
ations rather than changes in produced volumes.
Healthcare is one of the world’s largest suppliers of technol-
ogy to the healthcare industry and a leader in medical imaging
and laboratory diagnostics. We provide medical technology and
software solutions as well as clinical consulting services, sup-
ported by a comprehensive training and service portfolio. There-
fore, we offer our customers a comprehensive portfolio of med-
ical solutions along the healthcare continuum of care – from
prevention and early detection to diagnosis, treatment and fol-
low-up care. Because large portions of our revenue stem from
recurring business, our business activities are to a certain ex-
tent resilient to short-term economic trends but dependent on
regulatory and policy developments around the world. During
fiscal , we completed the sale of several businesses, in par-
ticular the hearing aid business and the hospital information
business. With the beginning of fiscal , Healthcare is stra-
tegically reorganized into six newly defined business areas
and six regions. The Business Areas are Diagnostic Imaging,
Laboratory Diagnostics, Advanced Therapies, Ultrasound, Point
of Care Diagnostics and Services.
The Financial Services (SFS) Division provides business- to-
business financial solutions. With specialist financing and
technology expertise in the areas of Siemens businesses, SFS
supports customer investments with leasing solutions and