The former CEO of Siemens AG, Joe Kaeser (now AR of Siemens Energy, among others), was instrumental in initiating the transformation of Siemens and drew an interesting conclusion on LinkedIn two days ago. (Excerpt👇)
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A good ten years ago, the Siemens transformation was a bold promise. Yesterday it became a historic stock market value of €200 billion for the "New Siemens AG". Together with €110 billion for Siemens Energy and €50 billion for Healthineers, this represents an immense increase in value.
The transformation strategy introduced at Siemens in the mid-2010s has been a complete success and has far exceeded expectations:
1️⃣ The "industrially" oriented new Siemens AG $SIE (+0,96 %) has consistently continued on the path to "Industry 4.0", the 4th Industrial Revolution. The mission statement was first presented by Siemens and the Federation of German Industries (BDI) in 2013 and specified by Siemens from 2017 to 2019. The fact that it was Americanized as the "Industrial Metaverse" is a missed opportunity for Germany's reputation as an industrial nation. Nevertheless, a German company is setting the pace for the global industrial transformation and is therefore a beacon for the industrial future of our country. The acquisition of Altair marks the beginning of this new CEO era. The "Vision 2020+" strategy has taken full effect. If this integration of hardware and software marketing succeeds, Siemens AG will have a market capitalization of €300 billion in 5 years ... at least.
2️⃣ Siemens Energy $ENR (+1,25 %) has also reached a historic all-time high with a market capitalization of €111 billion. After initial challenges, this part of the Siemens transformation has also exceeded its targets - significantly so. Compared to the competition, there is considerable potential for increasing value for all stakeholders. With an order backlog of around €140 billion, Energy is nowhere near the peak of what is possible. Even if those responsible are aware that the demand forecasts fueled by "AI mania" are inflated, the age of electrification has only just begun.
The performance of "#TeamPurple" is outstanding and is currently the benchmark in the energy sector.
3️⃣ Siemens Healthineers $SHL (+0,17 %) is and remains the leading provider of healthcare technology in the western world. Although the growth in value after initial successes cannot keep pace with the other two Siemens companies, the potential for development is enormous - if the one-sided shareholder dominance can finally be dismantled.
In all cases, these successes were and are possible because the three companies have outstanding leaders. And great teams.
The Siemens transformation is proof of many things. For three things in particular:
1️⃣ Something is possible in Germany if you approach it boldly and correctly.
2️⃣ Focus, innovative strength, impact - and not size - determine relevance.
3️⃣ Nobody is perfect, but a team can be!
"SIEMENS500 by 2030" is the new "Vision2030": €500 billion market value in 2030!
