The profit margin for Siemens' Industrial Business (which covers four business segments namely Digital Industries, Smart Infrastructure, Mobility, and Siemens Healthineers) rose to 14.2% from 11% the same quarter a year earlier driven by expanding profit margins for three of Siemens' four Industrial Business segments; Digital Industries' profit margin rose to 23.5% from 18.1%, Smart Infrastructure's profit margin rose to 15.9% from 11.1%, and Mobility's profit margin rose to 9.2% from -17.3%. endobj Sustainability report 2022 Contact us Publications & Ad Hoc. This document includes in the applicable financial reporting framework not clearly defined supplemental financial measures that are or may be alternative performance measures (non-GAAP-measures). Interact Analysis is planning to conduct research to assess the market opportunity for each of the high-efficiency motor topologies. Globally, Latin America is one of the emerging markets. 0000007071 00000 n This represents the first time IE4 efficiency levels will be required in any region. site. Chrome Browser, France24. Following the invasion of Ukraine in early 2022, energy markets across Europe have been greatly destabilized. compared to 2019 baseline, 90% of the electricity required comes from Colombia19. This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. Digital railway technologies is a multi-billion dollar industry and Siemens Mobility is a leader according to research firm MarketsandMarkets. Italy28. In fact, the company has reduced its greenhouse gas emissions in this area by 50% since the baseline year 2019. Detailed information regarding the compensation systems for . The original target was to reduce emissions by 46% by 2025. Figure 3: Left: SEW IES Capable Motor, Right: Cantoni IE4 Capable Motor Courtesy: Interact Analysis. Analysts Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Investment Opportunities9. Japan57. With a forward P/E of 13.8 Siemens is trading lower than the sector median and could be considered attractively priced for a market-leading player with favorable prospects. Other African Countries50. Sustainability is a key part of our strategy. In its direct area of responsibility (Scope 1 and 2), Siemens Energy emitted 21% fewer greenhouse gases in fiscal year 2022 than in the previous year. The data center power market has adopted energy-efficient UPS solutions that are helping the data center operators reduce the OPEX for electrical infrastructure and reduce the downtime in the data centers. THE USE BY SIEMENS ENERGY OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (MSCI) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF SIEMENS ENERGY BY MSCI. If we want to meet the 2015 Paris Agreement target, we absolutely have to act faster. With this 92-page document, which is published only in a digital format for sustainability reasons, the company aims to ensure greater transparency on its sustainability performance. 0000008930 00000 n Singapore62. Hannover . Chile18. Download report Overview on our sustainability activities Driving decarbonization Goals and commitments Portfolio Responsible operations People and society Inclusion and diversity Despite the standard not being properly defined yet, many vendors were going beyond IE4 to show their IE5 capabilities. In addition to regenerative braking and harmonic mitigation features, the U1000 has an electronic bypass mechanism which effectively shuts off the drive when the energy demands of the process at hand is equivalent to what is coming directly off the grid. Each has its own benefits and drawbacks depending on the nature of the application in question. Search Products And Discover New Innovations In Your Industry, Blake Griffin, Brianna Jackson and Tim Dawson, Dale Clinton and Jon Philips, PE, LEED AP, BD+C. A majority stake in the listed company Siemens Gamesa Renewable Energy (SGRE) makes Siemens Energy a global market leader for renewable energies. Smart Infrastructure revenue growth is projected at 14-16% (from 9-12% previously) with a profit margin of 14.5-15.5%. In order to create measurability and transparency, we have identified core key performance indicators (KPIs) to measure our efforts against: Our approach Based on three pillars Which region holds the most significant global data center power market share? decarbonization by 2030, 280 million investment for training Nordics32. Is this happening to you frequently? There is significant growth in greenfield and modular data center developments. Please note that there might be constraints on site display and usability. Said document xref Siemens Energy publishes fiscal year 2022 sustainability report. All Rights Reserved. Market Dynamics10. Philippines66. But this also means we must set a good example and apply the highest standards in our operations. Latin America15. Siemens Energy - Sustainability Report 2022:GRI Content Index The page numbers included in the GRI Content Index refer to the respective pages of the Siemens Energy Sustainability Report 2022. I am not receiving compensation for it (other than from Seeking Alpha). Our businesses, regional entities and central functions will also implement this program. JavaScript and reload the 1180 0 obj Sustainability Report 2022 Contact us Australia54. 0000020845 00000 n Learn more about our purpose, our innovation leadership, our culture, and our strategy. Digital Industries expects FY 2023 comparable revenue growth of 17-20% (from 12-15% previously) with a profit margin of 22.5-23.5%. Alongside energy efficiency, Interact Analysis has also provided substantial commentary about new entrants shaking up the supplier landscape for smart conveyance technology (here). What's Included4. It looks like you are using a browser that is not fully supported. Siemens Energy publishes fiscal year 2022 As more sustainability-conscious legislation, such as the Net-Zero Industry Act and the EUs Eco-Design Initiatives, are being enacted, industrial automation technology is being pushed to evolve to support these efforts. Siemens also disclosed the customer emissions avoided through its products and solutions sold in 2022, approximately 150 million tons, based on an updated future impact calculation methodology in accordance with the principles outlined in the Greenhouse Gas (GHG) Protocol Reporting Standard. The various ratings set different priorities on which they focus, e.g. On 96 pages, the Report reflects Siemens Energys environmental, social and corporate governance achievement in the past fiscal year and areas where it can improve. Among motor vendors a big question mark still hangs over which motor topology will be the predominant choice for those looking to implement IE5. New Zealand55. 0000001216 00000 n Europes answer to this is the Net-Zero Industry Act, which aims to push the EU to produce more of its technology domestically and localize supply chains. 0000027193 00000 n Please find the link below. Despite the wide range of technologies on display, an emphasis on energy efficiency and flexibility emerged as the central theme of the 2023 show. Sustainability Figures Contact us from a reversal of an impairment of Siemens' stake in Siemens Energy AG). 0000012625 00000 n Electrification around the world is still at a relatively early stage with the share of electricity in total energy consumption standing at around 20% in 2021. 0000004946 00000 n A P/E of below 14 (lower than the sector median) for a leading player with favorable prospects suggests the stock is attractively priced. site. "Sustainability Report 2021" document, which are based on the standards developed by the Global Reporting Initiative (GRI). Siemens Energy also reports emissions in Scope 3 that result from the operation of its own products over the entire life cycle. 0000003689 00000 n Such statements are based on the current expectations and certain assumptions of Siemens management, of which many are beyond Siemens control. 0000000016 00000 n In its second sustainability report, Siemens Healthineers set out its achievements in fiscal year 2022 on the way to its sustainability targets for 2025. Further information is available at www.siemens-healthineers.com. With worldwide demand for electricity expected to increase by around 25% before 2030, the sustainability of the energy sector is a matter of urgency. This is not a recommendation to buy or sell any stock mentioned. Norway, 35. In July of this year, the EU Eco-design Initiative will mandate that motors between 75kw and 200kw carry an efficiency level of IE4 at minimum. Energy is essential for life on earth. startxref Long term investment horizon. Furthermore you can find selected press releases as well as ad hoc announcements of Siemens Energy AG (disclosure of inside information according to Article 17 of Regulation (EU) No 596/2014 on market abuse). It is deeply embedded in our business activities, investment decision-making and governance. Siemens' Smart Infrastructure segment saw orders up 9% on a comparable basis driven by substantial growth in the electrification business which bagged a number of larger contracts from the data center, semiconductor, and power distribution customers. A major and prolonged economic recession could lead to slashed corporate budgets which could impact spending on digital transformation, and automation, impacting Siemens' Digital Industries business segment, one of its biggest by revenues and most profitable by margins (Digital Industries accounted for 27% of revenues in FY 2022, and had a profit margin of 20% that year). Other Southeast Asian Countries68. Data center operators in some markets are also prominently investing in adopting DRUPS systems. South Korea58. The growth in power demand from the data center market and sustainability requirements have led to several innovations in terms of generator fuel types. <>/Filter/FlateDecode/Index[26 1110]/Length 53/Size 1136/Type/XRef/W[1 1 1]>>stream Siemens Healthineers on track to reach sustainability goals for fiscal year 2025, Contribute to a regenerative and healthy environment, julia.donhauser-bach@siemens-healthineers.com. Performance:Siemens Energys ESG Risk Rating places it 4th percentile in the Electrical Equipment industry assessed by Sustainalytics. KEY TRENDS, SEGMENTATION ANALYSISSegmentation by Electrical Infrastructure, Key Topics Covered: 1. German industrial giant Siemens (OTCPK:SIEGY) continues to deliver robust performance. "Worldwide Data Center Power Market - Investment Prospects in 9 Regions and 41 Countries", https://www.researchandmarkets.com/r/ic7qf9. Rest of Apac60. Research Methodology6. Quarterly profit was up 75% YoY to EUR 779 million, its highest level ever while segment margins rose to 15.9%, also its highest level ever helped by higher revenues, increased capacity utilization, a more favorable product mix, and cost efficiencies from their ongoing competitiveness program. Conventional contracts were replaced more quickly by new agreements or supplemented by guarantees of origin, where it was impossible to purchase renewable energy directly from the supplier. Dive deeper into our fascinating technologies. With the publication of its Sustainability Report covering environmental, societal and corporate governance (ESG) for fiscal 2022, the company announced new, more ambitious targets for its own decarbonization as well as extensive investments. Rating: In October 2022, Siemens Energy has been awarded a Gold medal by EcoVadis with an overall score of 69 points out of 100. Orders at EUR 23.6 billion grew 15%, driven by the highest quarterly order intake ever for Mobility, as well as strong order intake at Smart Infrastructure (up 9%). These cookies do not store any personal information. The GHG emissions report has been restructured in accor-dance to the requirements described in ISO 14064-1:2018 | Source: What are the key trends in the data center power industry? Several operators are signing power purchase agreements with renewable energy companies. 0000013178 00000 n By 2030, Siemens Energy aims to be completely climate-neutral. In preparation for this legislation, many vendors of motors had their high-efficiency capabilities on display at Hannover Messe. Review our, 5 energy conservation strategies for food and beverage plants, Top 5 Plant Engineering content: February 27-March 5, 2023, Microstructure, defect engineering improves lithium-ion batteries, Energy topics are impacting industrial gearbox market, Boilers improve sustainability, energy efficiency at mushroom farm, CCASS Certification for Compressed Air System. Approximately 150 million tons customer emissions avoided with Siemens' products and solutions sold in FY 2022 650 million investment for own decarbonization by 2030 280 million investment for training and continuing education of own workforce in 2022 By September 30, 2023, electricity demand is expected to be covered entirely by green energy. Some may view the stock as a buy while others may view it as a hold. Please. Siemens Healthineers also provides a range of services and solutions to enhance healthcare providers ability to provide high-quality, efficient care. Our mission is to support our customers in their transformation to greater sustainability. Apac51. Learn more on our targets and performance. Improve quality of life through access to healthcare and innovation, Our social commitment: Advance diversity, equity, and inclusion, and drive employee engagement. FY 2022 2 Business Responsibility and Sustainability Report Siemens Limited Technology to Transform the Everyday Our Purpose Key figures 9,672 Employees 18,346 Gigajoules of renewable energy 83.5% Suppliers underwent ESG assessment `150 billion Revenue Allocation of the SDG goals to Siemens sustainability framework DEGREE E q u i t y Please enable Saudi Arabia43. While the U1000 matrix drive has been available in Yaskawas portfolio for nearly 8 years, its premium energy efficiency features made it the perfect drive for Yaskawa to prominently display given the backdrop discussed above. Uae42. The 2023 Hannover Messe exhibition showcased a wide range of products and companies with a central focus on energy efficiency, sustainability and flexibility in the industrial automation market. Required fields are marked *. Additionally, we continue to see increasing emphasis placed upon flexibility within intralogistics. Africa46. Sustainability is an integral part of our company strategy. The resulting changes became effective starting with fiscal 2022. Your email address will not be published. We want to be measured against our goals and performance and have selected strategic KPIs, on which we report in our annual Sustainability Report. It is critical to act now to protect the climate while meeting the growing energy demand. This category only includes cookies that ensures basic functionalities and security features of the website. The benchmark is based on peers receiving the same industry specific questions as Siemens Healthineers. The company works with its customers and partners on energy systems for the future, thus supporting the transition to a more sustainable world. Gartner recently named Siemens Digital Industries Software as a leader in the Gartner Magic Quadrant for Manufacturing Execution Systems (MES). For everyone. Taiwan59. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED AS-IS AND WITHOUT WARRANTY. 0000009724 00000 n 2.2 . Siemens sent a news release notifying the release of its 2022 Sustainability Report. Nigeria49. Said document also includes detailed information on DEGREE, Siemens' new sustainability framework which was introduced during fiscal 2021. . Siemens has been a pioneer in sustainability for many years and is continuing to accelerate its commitments. Mexico17. Please consult with a professional investment advisor prior to making any decisions. together with the Combined Management Report of Siemens Healthineers AG and the Siemens Healthineers Group, as of September 30, 2018 (IFRS) (pdf) 1.52 MB; The 2023 Hannover Messe exhibition showcased a wide range of products and companies with a central focus on energy efficiency, sustainability and flexibility in the industrial automation market. A key reason for the company's success in reducing greenhouse gases is its use of renewable energies. I have no business relationship with any company whose stock is mentioned in this article. Sign up today for your free Reader Account! The transition to renewable energies will have a decidedly profound impact on the world's energy landscape and magnify already rising concerns about energy security. Western Europe21. Siemens Energy improved in almost all areas of sustainability this past year, as reflected in its fiscal year 2022 Sustainability Report. Nearly all drive vendors that exhibited at Hannover Messe were displaying models of their drives which provide additional efficiencies to the system through features like regeneration, harmonic mitigation and electronic bypass. Our financial results and presentations at key events at a glance, Second-quarter results FY2023 | May 10, 2023, First-quarter results FY2023 | February 2, 2023, J.P. Morgan Healthcare Conference | Jan 10, 2023, Dr. Bernd Montag,Chief Executive Officer, Siemens Healthineers, Presentation J.P. Morgan Healthcare Conference, Annual Report and Sustainability Report FY2022 | Nov 28, 2022, Annual Financial Statements of Siemens Healthineers AG, September 30, 2022 (HGB), Fourth-quarter results FY2022 | November 9, 2022, Third-quarter results FY2022 | August 3, 2022, Second-quarter results FY2022 | May 4, 2022, First-quarter results FY2022 | Feb 3, 2022, J.P. Morgan Healthcare Conference | Jan 11, 2022, Annual Financial Statements of Siemens Healthineers AG, September 30, 2021 (HGB), First-quarter results FY2021 I Feb 1, 2021, J.P. Morgan Healthcare Conference | Jan 13, 2021, Berenberg European Conference | Dec 2, 2020, Kepler Cheuvreux Digital Diagnostics Day | Nov 24, 2020, Virtual 'Meet-the-Management'-Event & Shape 21 Forum, Fourth-quarter results and preliminary figures for FY2020, Siemens Healthineers plans to acquire Varian and published third-quarter results, First-quarter results FY2018I Feb 1, 2018, Quarterly and full year key figures FY2017 according to IFRS15, Historical financial statements FY2015-2017, Fourth-quarter results FY2021 I November 4, 2021, Third-quarter results FY2021 I July 30, 2021, Second-quarter results FY2021 I May 3, 2021, Virtual 'Meet-the-Management'-Event & Shape 21 Forum | Nov 17, 2020, Fourth-quarter results and preliminary figures for FY2020 | Nov 2, 2020, Third quarter results FY2020 I Aug 2, 2020, Second-quarter results FY2020 I May 5, 2020, First-quarter results FY2020 I Feb 3, 2020, 'Meet the Management' event I Dec 10, 2019, Fourth-quarter results and preliminary figures for FY2019 I Nov 4, 2019, Siemens Healthineers to acquire Corindus Vascular Robotics, Inc. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Please enable %%EOF 50% reduction in emissions at own operations compared to 2019 baseline. But opting out of some of these cookies may affect your browsing experience. Should one or more of these risks or uncertainties materialize, should decisions, assessments or requirements of regulatory authorities deviate from our expectations, should events of force majeure, such as pandemics, unrest or acts of war, occur or should underlying expectations including future events occur at a later date or not at all or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Hong Kong53. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Figure 4: Battery recycling application demonstration from Festo. Spain29. We are proud about the progress we have made across all areas of the sustainability program. The planned target was 84%. Beckhoff Automation showcased its XTS linear smart conveyance system and XPlanar planar systems alongside one another, and plans are afoot for other new vendors to enter this immature market in the future, helping to boost its growth potential above and beyond the traditional motion control market. ]r:/,b1h: 42\Fs30@O`!g7@d` GY Medium term, Siemens is well positioned; the company is geographically well diversified (enabling them to capitalize on growth opportunities around the world) and all of the company's end markets are benefiting from secular growth trends. Market Snapshot & Key Highlights11.2. Non-financial Declaration), Siemens Energy Sustainability Report 2022, Sustainability at Siemens Energy - Summary 2022, Annual Report 2022 (incl. While energy prices and supply chain woes remain a concern, you can expect continued emphasis to be placed on solutions like the ones observed at Hannover Messe 2023. 0000005368 00000 n MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI. Much of this increase could be met through electrification of transport, an opportunity for Siemens who has exposure to the space through its eMobility charging infrastructure business which has been active globally for over a decade. Non-financial Declaration), Siemens Energy ESG Performance Overview 2021, Siemens Energy Sustainability Report 2020, Siemens Energy ESG Performance Overview 2020, Honestly, the world isnt prepared for renewables, Siemens Energy is a trademark licensed by Siemens AG. The Report complies with the requirements of the German Stock Corporation Act (Aktiengesetz, AktG). You also have the option to opt-out of these cookies. Indonesia, 63. sustainability report, 50% reduction in emissions at own operations We published our Annual Report on December 2nd, 2021. Long only, focused on high quality businesses with economic moats and solid business fundamentals. Kenya48. Other Central & Eastern European Countries40. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. US13. Within the first two management levels (Gas and Power, excluding Siemens Gamesa), it rose by a further percentage point last year to 22%. Siemens G220 drive, in addition to having many features which support Siemens Xcelerator portfolio and broader digitalization strategy, has multiple premium models that include regenerative and harmonic mitigation features. hb```b``c`c`fg@ ~V(ojz0`E2. f72QP0l%%uRXEZP +uG/j "/8.j^ While prices for electricity largely peaked in August of 2022, the shell shock from a turbulent year is still heavily affecting manufacturers. Central & Eastern Europe37. Performance:Management level - Taking coordinated action on climate issues. One thing is clear: Business as usual is not an option. Siemens Energy improved in almost all areas of sustainability this past year, as reflected in its fiscal year 2022 Sustainability Report, published today. China52. Fourth-quarter results FY2022 | November 9, 2022. 0000011708 00000 n The exhibition emphasized the need for sustainability-conscious legislation and the need for industrial automation to support these efforts. About the Publisher2. 0000004325 00000 n 2022 CARBON REPORT SIEMENS PLC 2021 2 Siemens plc is a leading sustainable technology company working in the fields of smart infrastructure, e-mobility, automation and digitalisation. To ensure maximum impact, we focus our activities onSDG 5, 7, 8, 9,and13. Sustainability Report 2022 We are proud about the progress we have made across all areas of the sustainability program. While motor drives are inherently an energy efficiency device, new models are pushing this idea even further. Non-financial Declaration), Siemens Energy ESG Performance Overview 2022, Siemens Energy Sustainability Report 2021, Sustainability at Siemens Energy - Summary 2021, Annual Report 2021 (incl. Q2 FY23. Learn more on our targets and performance. Siemens Energy is one of the worlds leading energy technology companies. Everywhere. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Report on expected developments and associated material opportunities and risks in the Combined Management Report of the Siemens Report, and in the Interim Group Management Report of the Half-year Financial Report (provided that it is already available for the current reporting year), which should be read in conjunction with the Combined Management Report. 1136 46 Learn how your comment data is processed. The trend of procuring renewable energy to power its data center facilities by data center operators will likely continue during the forecast period. I wrote this article myself, and it expresses my own opinions. 1136 0 obj Figure 2: Siemens G220 Courtesy: Interact Analysis. 0000027453 00000 n Please disable your ad-blocker and refresh. These platforms provide standardized questionnaires to assess companies against customers ESG requirements. . India56. Siemens is well-positioned to benefit from digital transformation, electrification, and sustainability trends in the global market. Brazil16. 0000010710 00000 n renewable sources. Links Annual Report 2021 Sustainability Report 2021 May 31, 2023 04:04 ET However, legislation from other regions, such as the Inflation Reduction Act in the US, posed a threat to European industries, with the US act incentivizing European manufacturers to expand their operations within the US. Siemens Healthineers AG (listed in Frankfurt, Germany: SHL) pioneers breakthroughs in healthcare. You should consider contributing to our CFE Media editorial team and getting the recognition you and your company deserve. A solid book-to-bill of 1.22 helped push Siemens' order backlog higher again to a record EUR 105 billion which should support near-term performance. Siemens Healthineers Sustainability Report 2021 (pdf, 2475.23 KB) Our targets Measurable and transparent Our sustainability targets for FY 2025 and beyond are ambitious. The modular data center developments are increased as the construction methods seemed inefficient due to labor shortages, budget constraints, and construction delays in certain countries across the region. About Our Data Center Capabilities3. Siemens Healthineers (in which Siemens holds a 75% stake) (OTCPK:SEMHF) (OTCPK:SMMNY) had a relatively soft quarter with orders down 14% YoY, revenues down 3% YoY and segment profits down 67% YoY largely due to sharply lower demand for rapid coronavirus antigen tests in the diagnostics business. Addressing the challenges of climate change requires innovative solutions to reduce greenhouse gas e, PowerCell has signed an agreement with Robert Bosch GmbH to manufacture the fuel cell stack S3 for P, Cepsa and Grupo Iberelica Renovables have signed an agreement that will enable Cepsa to support ren. Since 2015 Siemens has had a global target to halve its emissions by 2020 and become Net Zero in its own operations by 2030. Rating:In February 2022, Siemens Energy received an ESG Performance Rating and was ratedB-Prime. Firefox Browser, The company expects to progress rapidly in this area under the newly implemented organizational structure that went into effect on October 1, 2022. 0000011563 00000 n 0 Finland & Iceland36. Vietnam67. Middle East41. <]/Prev 65307/XRefStm 1513>> The profit margin for Siemens' Industrial Business (which covers four business segments namely Digital Industries, Smart Infrastructure, Mobility, and Siemens Healthineers) rose to 14.2% from 11% the same quarter a year earlier driven by expanding profit margins for three of Siemens' four Industrial Business segments; Digital Industries' profit margin rose to 23.5% from 18.1%, Smart Infrastructure's profit margin rose to 15.9% from 11.1%, and Mobility's profit margin rose to 9.2% from -17.3%.