Siemens Financial Services

Siemens Financial Services GmbH (SFS) is the financial-services division of Siemens AG and a global provider of business-to-business financing. Based in Munich, it supports Siemens customers, Siemens businesses, and external corporate clients with financing and risk-management solutions connected principally to energy, industry, healthcare, and infrastructure and cities. Its activities cover financing for infrastructure and equipment, working-capital investments, leasing, project finance, structured finance, equity investments, sales finance, and related treasury and payment solutions. The organization emerged from Siemens’ effort to consolidate its financial activities into a dedicated unit. In October 1997, the Siemens Group bundled its financial operations in an organizational structure intended both to develop the financial-services business and to improve transparency for investors through a separate financing balance sheet. From 1999, SFS served as Siemens’ financial-services center of expertise and as a provider of financial risk management for the group’s business-to-business market. Its original responsibilities included leasing, alternative equipment-financing structures, project finance, and equity participation. It also became involved in Siemens treasury and payment-transaction solutions and the financial management of pension assets. Insurance operations were added in 2000, followed later by venture-capital activities. SFS expanded internationally through acquisitions, subsidiaries, and financing companies. The purchase of Schroder Leasing in Great Britain in 2000 strengthened its European presence. In China, Siemens Finance and Leasing Ltd. was established in March 2005 with headquarters in Beijing. In India, Siemens Financial Services Private Limited was established in June 2011 and subsequently received a non-banking finance company license from the Reserve Bank of India. In Russia, the acquisition of equipment-finance provider ZAO DeltaLeasing received approval from the Federal Antimonopoly Service at the beginning of 2011; the business was renamed OOO Siemens Finance on October 1 of that year. The division also developed a banking capability in Germany. Siemens Financial Services received a banking license from the German Federal Financial Supervisory Authority at the end of 2010. Siemens Bank GmbH consequently expanded the group’s financing offering with loans and guarantees, particularly for sales-financing activities. SFS serves both Siemens-related transactions and independent customers. Its business structure includes Commercial Finance, Equity Finance, Project & Structured Finance Debt for the Americas, and Project & Structured Finance Debt for Europe, the Middle East, Africa, and the Asia-Australia region. The division’s international network is coordinated from Munich and includes financing companies across major developed and emerging markets. Reference material identified approximately 3,150 employees worldwide and, as of September 30, 2016, reported regional total assets of €12.3 billion in the Americas, €11.1 billion in Europe, Africa, and the CIS, and €3.1 billion in Asia, Australia, and the Middle East. SFS has also undergone organizational change within Siemens. In 2019, some functions were transferred to Siemens AG as the corporate unit CF Financing. The SFS division nevertheless remains an active Siemens financial-services organization, with its current leadership identified in the reference material as Veronika Bienert, chief executive officer since October 2021, and Andreas Rudolf, chief financial officer since October 2021.

Siemens Financial Services developed from Siemens AG’s effort to organize its financial activities as a distinct area of expertise. In October 1997, Siemens bundled its financial operations into an organizational unit. The arrangement was designed not only to expand financial activities but also to make the group’s financial position more transparent to investors by establishing a separate financing balance sheet. From 1999 onward, Siemens Financial Services served as Siemens’ center of expertise for financial services and financial risk management in the business-to-business market. At its formation, the organization handled Siemens leasing and alternative asset- and equipment-financing activities, as well as project finance and equity participations. Its mandate also included treasury and payment-transaction solutions and the financial management of pension assets. In 2000, insurance operations were added, and venture-capital activities were later brought within the broader financial-services area. The organization therefore combined customer-facing finance with selected internal financial-management responsibilities. International development became an important part of SFS’s growth. In 2000, Siemens acquired Schroder Leasing in Great Britain, extending the division’s established European operations. Siemens continued to build financing capacity in emerging markets. In March 2005, it established Siemens Finance and Leasing Ltd. in China, headquartered in Beijing. In India, Siemens Financial Services Private Limited was established in June 2011 and received a non-banking finance company license from the Reserve Bank of India, allowing it to provide financing solutions to Siemens customers in that market. SFS also expanded its Russian operations. At the beginning of 2011, Russia’s Federal Antimonopoly Service approved Siemens’ acquisition of ZAO DeltaLeasing, an equipment-financing provider. On October 1, 2011, DeltaLeasing was renamed OOO Siemens Finance. These developments formed part of a wider international network of financing companies coordinated by the Munich headquarters. The division’s banking activities in Germany expanded at the end of 2010, when Siemens Financial Services received a banking license from the German Federal Financial Supervisory Authority. Siemens Bank GmbH added loans and guarantees to the group’s offering, with particular relevance to sales financing. Alongside its own financing products, SFS continued to act as a manager of financial risks for Siemens AG. SFS’s customer base includes Siemens businesses and external corporate clients. Its principal markets correspond closely to Siemens’ industrial and infrastructure activities, including energy, industry, healthcare, and infrastructure and cities. Financing can support infrastructure projects, equipment purchases, technology investments, and working-capital requirements. The organization’s business units are Commercial Finance, Equity Finance, Project & Structured Finance Debt for the Americas, and Project & Structured Finance Debt for Europe, the Middle East, Africa, and the Asia-Australia region. Reference material describing the network as of September 30, 2016 reported regional total assets of €12.3 billion in North and South America, €11.1 billion in Europe, Africa, and the CIS, and €3.1 billion in Asia, Australia, and the Middle East. The same material identified approximately 3,150 employees worldwide. These figures are historical and do not represent a current financial statement. In 2019, some SFS functions were moved into Siemens AG as the corporate unit CF Financing, reflecting a further division of responsibilities within the Siemens financial organization. SFS remained an active Siemens division. Its leadership changed in October 2021, when Veronika Bienert became chief executive officer and Andreas Rudolf became chief financial officer. The available reference material does not provide a more recent organizational or financial profile.

• 2021

  New chief executive and chief financial officer

  [1]Siemens Financial Servicesen.wikipedia.org

  Veronika Bienert became CEO and Andreas Rudolf became CFO of Siemens Financial Services GmbH in October.

• 2019

  Selected functions transferred to Siemens AG

  [1]Siemens Financial Servicesen.wikipedia.org

  Some SFS functions were transferred to Siemens AG as the corporate unit CF Financing.

• 2011

  Indian finance subsidiary established

  [1]Siemens Financial Servicesen.wikipedia.org

  Siemens Financial Services Private Limited was established in India and later received a non-banking finance company license from the Reserve Bank of India.

• 2011

  Russian equipment-finance business renamed Siemens Finance

  [1]Siemens Financial Servicesen.wikipedia.org

  Following regulatory approval of the DeltaLeasing acquisition, the Russian business was renamed OOO Siemens Finance on October 1.

• 2010

  German banking license obtained

  [1]Siemens Financial Servicesen.wikipedia.org

  SFS received a German banking license, supporting the creation and operation of Siemens Bank GmbH.

• 2005

  Chinese leasing company established

  [1]Siemens Financial Servicesen.wikipedia.org

  Siemens Finance and Leasing Ltd. was established in China with headquarters in Beijing.

• 2000

  Schroder Leasing acquisition and insurance expansion

  [1]Siemens Financial Servicesen.wikipedia.org

  Siemens acquired Schroder Leasing in Great Britain and expanded SFS responsibilities to include Siemens insurance operations.

• 1999

  SFS becomes Siemens’ financial-services center of expertise

  [1]Siemens Financial Servicesen.wikipedia.org

  Siemens Financial Services assumed a central role in business-to-business financial services and financial risk management for Siemens.

• 1997

  Siemens bundles its financial activities

  [1]Siemens Financial Servicesen.wikipedia.org

  In October, Siemens organized its financial activities within a dedicated unit to develop the financial business and improve investor transparency through a separate financing balance sheet.

A Siemens-affiliated specialist in business-to-business finance, using sector knowledge and the Siemens industrial ecosystem to structure financing for technology, infrastructure, equipment, and working-capital investments.

• Business-to-business financing

  Commercial Finance

  Commercial Finance provides financing solutions for business customers and Siemens-related transactions. Its scope includes equipment and asset finance, leasing, sales finance, and working-capital support. The offering is intended to help customers acquire or deploy industrial and infrastructure technology without relying solely on immediate balance-sheet funding.

• Equity and investment finance

  Equity Finance

  Equity Finance covers equity-related investments and financing activities within the SFS business portfolio. Equity participation was part of the organization’s responsibilities from its early development, while venture-capital activities were added later to the wider Siemens financial-services remit.

• Project finance

  Project and Structured Finance Debt

  Project and Structured Finance Debt arranges debt financing for infrastructure, industrial, energy, healthcare, and other large-scale investments. The business is organized geographically through an Americas unit and a unit serving Europe, the Middle East, Africa, and the Asia-Australia region.

• Asset finance

  Leasing and equipment finance

  Leasing and equipment finance support the acquisition and use of industrial assets, infrastructure equipment, and technology. These activities were among SFS’s original responsibilities and remain closely connected to Siemens’ business-to-business customer base.

• Banking and sales finance · 2010

  Siemens Bank

  Siemens Bank GmbH added banking products such as loans and guarantees to the Siemens financial-services portfolio after SFS received a German banking license at the end of 2010. Its role was particularly associated with sales financing.

• 2019

  Reallocation of selected financing functionsStrategy

  Background

  Siemens adjusted the internal organization of its financial activities.

  Action taken

  Some SFS functions were moved to Siemens AG as the corporate unit CF Financing.

  Aftermath

  Responsibilities became more distributed between the SFS division and Siemens AG’s corporate financing structure.

  Source

• 2011

  Acquisition and renaming of DeltaLeasing in RussiaM&A

  Background

  SFS was extending its equipment-finance presence in emerging markets.

  Action taken

  After Russian Federal Antimonopoly Service approval, Siemens acquired ZAO DeltaLeasing and renamed it OOO Siemens Finance on October 1, 2011.

  Aftermath

  The transaction expanded Siemens’ Russian equipment-financing operations.

  Source

• 2010

  Expansion into regulated bankingOther

  Background

  SFS sought to broaden its financing portfolio beyond leasing and other corporate-finance structures.

  Action taken

  SFS obtained a banking license in Germany, enabling Siemens Bank GmbH to offer loans and guarantees.

  Aftermath

  Banking products became part of the division’s sales-financing offering.

  Source

• 2005

  Establishment of a dedicated Chinese leasing companyStrategy

  Background

  SFS was expanding beyond established European and North American markets and sought local financing capacity in China.

  Action taken

  Siemens established Siemens Finance and Leasing Ltd. in Beijing in March 2005.

  Aftermath

  The move added a dedicated SFS leasing platform in China.

  Source

1. 1Siemens Financial Servicesen.wikipedia.org