1 2015 Annual and Sustainability Report siemens.com.br 2 Contents Contents Introduction Página 03 Siemens at a Glance Página 05 Letter from the CEO Página 06 Our Path Página 08 Our Strategy Siemens in Brazil Página 10 Siemens in Brazil Página 12 Siemens’ Presence in Brazil Página 13 Company Structure Página 14 Manufacturing Facilities in Brazil Página 16 Innovation How to read this Report Reinforce Siemens’ commitment towards transparency is the organization that standardizes publications of this sort. Throu- main objective of this Annual and Sustainability Report, pro- ghout the chapters, information corresponding to GRI G4 indi- duced in two versions: print and online. cators are pointed out according to their acronyms just below the text where they appear. Before preparing this report, we consulted our various stake- holders to learn what really interests them. Therefore, this The online version of this report can be accessed through the report is a response to our customers, employees, suppliers, following website: www.siemens.com.br/relatorioanual2015. universities, entities and communities that in some way relate or intend to relate with Siemens. Besides more detailed information, it also contains videos, tables with Global Reporting Initiative indicators and links to All the information contained herein refers to the October 1, other Siemens publications. 2014 – September 30, 2015 period, contemplating the Brazil operation. Pursuant to our head office policy, we only report Aware that publications such as these must be dynamic and consolidated financial data. Complete financial data from the constantly satisfy society’s demands, we invite you to partici- Siemens AG head office in Germany is available at: pate in a survey about this publication. www.siemens.com/annual/15/en/financial-report. Link: www.siemens.com.br/relatorioanual2015/pesquisa In Brazil, reports published by Siemens follow the guidelines de- fined in the Global Reporting Initiative (GRI), an international www.siemens.com.br Access and download the following global Siemens apps: http://www.siemens.com/social/en/applications.php twitter.com/siemens_brasil www.facebook.com/siemensbrasil Autobiography Publications App www.youtube.com/siemens as an App https://blogs.siemens.com/conexaosiemens Fairs & Events Siemens App App www.linkedin.com/company/siemens GRI Indicators - G4: 18 Siemens at a Glance 3 Products and Solutions Sustainability Página 20 Sustainable Energy Página 44 Stakeholder Dialogue Página 26 Future of Manufacturing Página 45 Sustainability at Siemens Página 30 Intelligent Infrastructure Página 46 Environmental Management Página 38 Next Generation Healthcare Página 47 Supplier Management Página 48 Quality Management Página 49 Compliance Página 50 Integrity Página 51 Siemens Excellence System Página 52 Employees Página 55 Occupational Health & Safety Página 56 Corporate Citizenship Página 57 Siemens Foundation Página 58 Awards 2014 Siemens at a glance 2015 5.3181) 5.6861) New orders New orders 7.133* 6.459* Employees Employees (September 30, 2014) (September 30, 2015) 5.0381) 4.9611) Net income Net income In millions of Reais 1) Notes: • In 2014: • Em 2015: International Business, Country Level, excluding exports International Business, Country Level, excluding exports Fiscal year (October 1 – September 30) Fiscal year (October 1 – September 30) * Total Siemens Brazil * Total Siemens Brazil GRI Indicators - G4: 9 4 The pressure our country is undergoing requires that the efficiency “ increase needed for Brazil’s infrastructure and industry be treated as a key factor of success for our companies and for our economy.” Paulo Ricardo Stark President and CEO of Siemens Brazil Letter from the CEO 5 Dear reader, The global economic dynamic in 2015 led developed countries our economy. With this in mind, Siemens kicked off in 2015 a back to a leading position in growth. Even though China still debate about opportunities that digitalization offers. This glo- posted positive indicators, the Asian nation was not such a bal macro-trend, which is revolutionizing manufacturing, tra- strong driver of global economic activities as seen in previous de, technology and society in an increasingly faster manner, years. Likewise, the other emerging economies – Brazil, Russia will enable enormous gains in productivity. and India – were unable to boost their attractiveness for inter- national investments, which trend is not expected to change Together with our customers and partners, we conducted in the medium-term. studies, events, panels, discussions and projects that brought to light a little bit about the enormous productivity potential Brazil did not advance in the main global trade indicators, that the fourth industrial revolution can provide to Brazilian ranking in the last positions of competitiveness and complexi- industries, by applying technologies and solutions developed ty, further reinforcing that, even though the return of growth at Siemens. Within this context, 2016 will be a year to focus is a real perspective, the country will still need to undergo in- on what creates result: efficiency gains through production di- vestments in infrastructure, efficiency, industrial productivity gitalization. Our teams are prepared to identify the best path and debureaucratization. together with our customers. Guided by the priorities of our customers and our “Vision We truly believe in this transformational capacity that, in face 2020” global strategy, we aligned the company’s activities of the huge challenges that climate change imposes on socie- around the electrification, automation and digitalization ty, Siemens has already delivered equipment and technologi- chains. With this, we assume a leading role in times of crisis: cal solutions that have allowed our customers worldwide to we make investments in those sectors that are important for reduce their CO2 emissions by 487 million tons ‒ equivalent to Brazil, making acquisitions and developments that broaden 50% of Germany’s total carbon dioxide emissions. And it now our portfolio of solutions in the most relevant sectors of the became the first company in the sector to assume the global Brazilian economy; we further reinforced our Compliance pro- commitment to totally neutralize its carbon dioxide emissions gram; and concluded the most important stage of the cultural by 2030, reducing them to half by 2020. Some indicators al- and operational transformation process we kicked off at Sie- ready point to the success of this commitment, such as the mens Brazil back in 2012. Carbon Disclosure Program assessment, in which we received a score of 100 points out of 100 possible. As a result, we see potential to significantly expand our ac- cessible markets. This new landscape allows us to foresee So many things made Siemens’ 110th anniversary in Brazil doubling our local business volume by 2020, which fact was – celebrated in 2015 –even more important and reinforcing, corroborated by the preference of our customers, employees, for we are certain that we are in this country to do some- suppliers and society in 2015. thing more, something of value, something transformational for you. We obtained important recognitions in 2015, such as: a sig- nificant improvement in customer satisfaction as reported in Me and my colleagues are working every day to continue de- the 2015 satisfaction survey; the seal “Pro-Ethics Company”, serving your trust and preference. Take a look at how we are granted once again to Siemens by the Office of the Comptrol- doing this in the next pages. ler General (CGU); inclusion in the Exame Sustainability Guide; ranking as one of the 35 best companies to begin a career, Enjoy! and also one of the 150 best companies to work. But, among all the recognition received, the most important was having Paulo Ricardo Stark received new orders, significantly surpassing the previous ye- President and CEO of Siemens Brazil ar’s volume, having gained market share in all Divisions, in the best demonstration of trust from our customers. It is with gre- at pride, and also modesty, that we at Siemens receive all this recognition, because we know there is still a lot more to do. The pressure our country is undergoing requires that the effi- ciency increase needed for Brazil’s infrastructure and industry be treated as a key factor of success for our companies and for GRI Indicators - G4: 1 • 2 6 Our Path Our values Our values – Excellent, Responsible and Innovative – guide all activities we execute. We believe that these values are fundamental for us to benefit from opportunities, whether internal, such as improvements to our products, services and operations, or external, such as needs that we can sa- tisfy in all sorts of business markets. Our culture - A lived 2. ownership culture One engine of sustainable business is our ownership culture, in which every employee takes personal res- Vision 2020 ponsibility for our Company’s success. “Always act as if it were your own Vision 2020 was created to boost Siemens development in Company” – this maxim applies to the medium-term, answering three questions: everyone at Siemens, from Managing Board members to trainee. What do we stand for? What sets us apart? How can we achieve long-term success? 1. These questions are answered based on three pillars: Our path - A clear mission The manner how we perceive our aspirations: We make real what matters, by setting the ben- chmark in the way we electrify, automate and digitalize the world around us. Ingenuity drives us and what we create is yours. Together we deliver. GRI Indicators - G4: 56 Our Path 7 The world is changing in a very intensive manner. In Siemens case, with Transform more than 165 years of history on the planet, change is more than just a challenge – it represents the need to continue growing and leading to continue markets. At the beginning of the century, digital transformation surfaces as one of the most important trends, alongside two others of global relevance leading – electrification and automation. The themes associated to these trends present challenges and opportunities practically worldwide, and this is why we have aligned our businesses according to them.