The group is increasingly concentrating on its digital businesses.
(Photo: dpa)
Munich Siemens boss Roland Busch continues to clean up the portfolio. On the evening before the Annual General Meeting, Siemens announced the sale of its postal and parcel business to the Körber Group for EUR 1.15 billion. In addition, the shares in an electric motor joint venture will go to the French partner Valeo.
Siemens is thus further separating itself from activities that have long since ceased to be part of its core business. These are important steps to strengthen the profile as a focused technology company, said Busch.
The postal and parcel automation from Siemens Logistics has been up for sale for some time. Most recently, with around 1,200 employees, it achieved sales of around 500 million euros.
The “ideal partner” was found in the Körber Group, said Busch. “Körber’s future-oriented strategy for growth, innovations and investments is in the best interests of everyone involved.” The airport logistics business, for example with baggage sorting systems, will remain with Siemens.
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In its “Supply Chain” business area, Körber offers, among other things, software, automation solutions, robotics and transport systems. Körber boss Stephan Seifert said that with the postal and parcel business from Siemens Logistics, one could supplement the “market offer as a leading global provider in the supply chain and e-commerce industry”. “I’m thrilled about the opportunities that arise for the common future and cooperation with our customers.”
After a supervisory board meeting, Siemens also announced that it was leaving the electric motor joint venture with Valeo. The French take over the shares from Siemens.
The technology group estimated the positive earnings effect of this sale at around 300 million euros in the current quarter. “Together with our partner, we have positioned the joint venture as a leader in its market segment,” said Busch. The full integration at Valeo offers business, employees and customers good prospects.
Siemens: No further major spin-offs planned
The step had been expected. Siemens once had big plans in the electromobility motors business. In 2016, however, the activities, including power electronics, were brought into the joint venture Valeo Siemens eAutomotive. According to information from the Handelsblatt, Siemens had also secured an exit clause with a put option. Most recently, the business was no longer part of the core business in terms of the balance sheet.
In the last major conversion step, Siemens spun off energy technology as Siemens Energy a year and a half ago. The new CEO Busch, who has been at the helm for a year, emphasized that no further large spin-offs are planned.
However, Siemens still has a few so-called Portfolio Companies (Pocs), which are no longer part of the core business and are managed more independently. Siemens usually looks for a partner or buyer for these.
Most recently, the group announced, among other things, the spin-off of the business with large drives. In addition, Siemens sold its transport technology subsidiary Yunex to Atlantia, a holding company of the Benetton family, for almost one billion euros.
With the sales, the traditional group is changing more and more in the direction of a digital group. According to the previously published manuscript, in his speech at the Annual General Meeting on Thursday, Busch reaffirmed the group’s ambitious digital growth targets. “We connect the real world with the digital world like no other company.” The digital portfolio, which recently generated sales of around 5.3 billion euros, is expected to grow by an average of ten percent over the next five years.
Initially, growth will be somewhat slower due to the switch to a “Software as a Service” rental model. “Then, after fiscal year 2023, faster and faster.”
More: Balance sheet check Siemens – The group reaches a new yield level.