Despite many crises, Siemens has recently earned better than ever from its global business. CEO Busch does not see a decline in the industry in the home market. He is planning large investments here.
Is Germany facing deindustrialization and gradual economic decline? Siemens boss Roland Busch answered this question at today’s annual press conference in Munich with a clear no. Of course there is a fundamental transformation of the industry towards more sustainability, digitalization and automation. This is a challenge, but also an opportunity, says Busch.
Roland Busch referred to his own company. In recent months, Siemens has announced one billion euros in investments for its German locations. 500 million of them go to Erlangen.
Siemens wants to build a factory there for the so-called industrial metaverse, i.e. the merging of machines and the virtual world. And not somewhere in Asia or in Silicon Valley, but in the Franconian province: “We do this because we believe in the innovative strength of our colleagues here. With the technologies that we develop here, we can also differentiate ourselves internationally .”
Transformation as an opportunity
The Siemens boss also emphasized the “strong portfolio” and the important business in Germany: “That’s why we are confident that innovation can also make progress in Germany.” In this country there is an innovation landscape that is unique in the world. Corporations and medium-sized companies as well as universities and other research institutions worked together in a more networked way than almost anywhere else.
According to Roland Busch, he sees the transformation of the economy towards more sustainability and digitalization above all as an opportunity for the location. The starting position for his own company is good. Siemens made significant gains in incoming orders, sales, profits and cash flow last year despite the shaky economy and international crises.
Digital solutions required
According to Busch, one reason is the reorganization of previous years. At that time, the Munich-based group was strategically restructured: “We are focusing on the big trends: sustainability, digitalization, automation. And that is reflected in the numbers.”
In addition to automation technology and digital solutions for industry or buildings, there is also strong demand for rail technology. The Mobility railway division is now one of Siemens’ most important revenue generators. The group expects rapid growth, especially in the USA.
Rising dividend announced
In view of the massive increase in profits, the dividend is expected to rise from 4.25 to 4.70 euros per share. Siemens also announced a six billion euro program to buy back its own shares.
The support package for Siemens Energy, which was negotiated for a long time with the federal government, was also an issue in Munich. Siemens is buying shares in the previous joint venture Siemens India from the former subsidiary for around 2 billion euros. This would give Siemens Energy additional liquidity and enable it to stabilize its rating. At the same time, CEO Busch also said that they wanted to gradually reduce the stake in Siemens Energy from around 25 percent today.