Siemens increases revenue from Environmental Portfolio products to ?23 billion

Siemens, long a world leader in coal-fired and nuclear-energy plant production, is increasingly generating its sales from products such as wind energy, energy-saving turbine engines, solar energy and components for smart electricity grids. Experience from more than 7,793 installed wind turbines. Since 1980, the focus was on developing competitive wind turbines. From the first 22-kW wind turbine up to the MW range turbines of today.

Siemens also announced Tuesday its first wind energy order from Latin America. The $270 million contract, from Mexican wind energy developer Grupo Soluciones en Energias Renovables, is to build 70 wind turbines for the Los Vergeles wind farm in Tamaulipas, Mexico.

In fiscal 2009, energy-saving motors, solar inverter systems and selected components for energy-saving building technology were among the products added to the portfolio. “Our green products and solutions are contributing to stabilizing our business during the economic crisis,” said Barbara Kux, Chief Sustainability Officer and Member of the Siemens Managing Board. The company already indicated that Siemens’ total revenue for 2009 was expected to be approximately equivalent to that of fiscal 2008.

In fiscal 2009, Siemens customers worldwide were able to reduce their carbon dioxide (CO2) emissions by a total of 210 million tons with products and solutions from the Siemens Environmental Portfolio – which the company first defined in 2007. This amount is equal to the annual CO2 emissions of New York, Tokyo, London and Berlin put together. In the previous year, the cumulative savings amounted to the equivalent of 160 million tons. In fiscal 2011, the annual CO2 savings are projected to total at least 300 million tons, which roughly corresponds to the current emissions of six major cities – New York, Tokyo, London, Singapore, Hong Kong and Rome.

Siemens’ green portfolio showed strong growth in the area of products and solutions for wind power. Major orders, for example, were received by the company in connection with the construction of the world’s largest wind farm in the Thames Estuary near London. Large orders of this nature will form the basis for further growth in the future. Gas and steam turbine power plants and their key components, which continue to be a strong business area, have also accelerated the development of Siemens’ green portfolio. Further growth drivers are environmentally friendly trains and trams and the components for so-called smart grids, the intelligent power grids for which an important new market is beginning to develop. In this area, which is also being addressed by numerous stimulus programs round the world, Siemens anticipates orders with a total volume of around €6 billion by 2014.

Siemens’ Environmental Portfolio embraces nearly all relevant areas involving the generation, transmission, distribution and use of energy – whether it be for buildings, lighting, transportation or industry – as well as other environmental technologies. Nearly all Divisions in the three Sectors Industry, Energy and Healthcare contribute to the portfolio. The company’s highly efficient gas turbines, retrofitting of older power plants, wind power systems, energy-efficient lighting and ecofriendly trains make the biggest contributions toward reducing CO2 emissions on a regular basis.

To qualify for inclusion in the Environmental Portfolio calculations, a product must reduce greenhouse gas emissions or, as an environmental technology, help combat water and air pollution. All Siemens products in the area of renewable energy meet this criterion. The CO2 abatement potential of other Siemens products is calculated on the basis of specific reference values. So, for example, the potential savings generated by today’s most advanced and efficient gas turbine power plants are calculated by comparing emission volumes per generated kilowatt hour with the average figure for all power plants worldwide. The contribution of light-emitting diodes and energy-saving lamps is similarly calculated. Solutions for modernizing older power plants are also included in the Environmental Portfolio, since increasing plant efficiency substantially reduces CO2 emissions at a relatively low cost. The energy savings achieved by optimizing electricity consumption in buildings are calculated on the basis of a before-and-after comparison.

Siemens’ Environmental Portfolio is developed and expanded on a regular basis. In fiscal 2009, the portfolio’s revenue and CO2 savings will be reviewed as before by PricewaterhouseCoopers. This review is based on the criteria defined in the Greenhouse Gas Protocol Initiative of the World Business Council for Sustainable Development and the World Resources Institute.

Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. The company has around 410,000 employees (in continuing operations) working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of solutions for individual requirements. For over 160 years, Siemens has stood for technical achievements, innovation, quality, reliability and internationality. In fiscal 2008, Siemens had revenue of €77.3 billion and a net income of €5.9 billion (IFRS).