The 2022 fiscal year was a year of geopolitical and macroeconomic challenges. For Siemens Energy, it was a year of transformation in the pursuit of achieving profitability, flattening hierarchies, and dampening economic headwinds. The Gas and Power segment, which has been diligently executing its operational excellence program, managed to navigate both global supply chain disruptions as well as rising material costs.
As a result of the Ukraine war and imposed sanctions, Siemens Energy started taking provisions to exit its business in the country. In the fourth quarter, the company completed the sale of a 65% stake in Siemens Gas Turbine Technologies (SGTT), which was co-owned by Russian company Power Machines. A further sale of a factory in Voronezh was completed on October 12.
With its new operating model, Siemens Energy has created more transparency, agility, and flexibility. Starting October 1, the company is operating under a new structure, with fewer hierarchies and clearer responsibilities. Additionally, two new members have been appointed to its executive board: Anne-Laure de Chammard is responsible for the Transformation of Industry Business Area, which mainly focuses on reducing energy consumption and CO2 emissions in industrial processes. Vinod Philip, previously Head of Strategy and Chief Technology Officer, is now responsible for the Management of Global Functions such as IT, procurement, and innovation.
At SGRE, new management has been put in place to rectify problems. The company’s turnaround program MISTRAL, designed to ensure profitable growth at the company, is underway. On May 21, 2022, Siemens Energy announced a voluntary cash tender offer to acquire all outstanding shares in SGRE., i.e., approximately 32.9 percent of the share capital, which Siemens Energy does not already own. Starting on November 8, minority shareholders have the possibility to tender their shares for €18.05 per share in cash until an expected end date of December 13, 2022. If at least 75 percent of the shares are tendered, Siemens Energy intends to pursue a delisting of SGRE from the Spanish stock exchanges, where it currently trades as a member of the IBEX 35 index. In case of exceeding the ownership threshold of 96.7% of all shares Siemens Energy will pursue a squeeze out of the remaining shareholders.