Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (December 2008)
19 slides from Siemens Aktiengesellschaft's investor day presentation, Dec 18, 2008
Slide 1: Siemens Industry − Focus on Execution and Performance
Siemens Industry − Focus on Execution and Performance Dr. Ralf P. Thomas, CFO Industry Capital Market Days 'Industry' Munich, December 18, 2008 Page 1 December 2008 Capital Market Days 'Industry' Copyright Copyright©©Siemens SiemensAG AG2008. 2008.All Allrights rightsreserved. reserved
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,”
Slide 3: The Industry CFO Agenda
The Industry CFO Agenda Topics 2008 Agenda 2009 First year of Industry Sector Tracking of sales funnel A year of growth and success Conversion of backlog to sales Î IA, DT and IS at record growth rate Comprehensive risk with top margins management Î BT solid in target margin range Enforcin
Slide 4: 2008 – First year of Industry Sector – A year of profitable growth
2008 – First year of Industry Sector – A year of profitable growth Growth Profit €bn 1.12 book- Accelerated +10% Target margin to-bill 11% growth with peak achieved despite in Q3 3.5 3.9 large negative 8% 2x 2 x GDP target one off’s 9% GDP achieved 9.8% 10.1% Strong earnings 5.4% 6% conversi
Slide 5: Strong growth in BRIC – Clearly outpacing 2 x GDP
Strong growth in BRIC – Clearly outpacing 2 x GDP New Orders New Orders growth (comparable) €m New orders Growth (in %) Europe, CIS, Africa 11% 2007 2008 Nom. Comp. therein Germany 2% therein Russia 60% IA 7,846 8,945 14 11 DT 8,883 9,846 11 14 Americas 3% BT 6,351 6,333 0 3 therein U.S. 3% OS 4,690
Slide 6: FY 2008 Underlying performance better than reported figures
FY 2008 Underlying performance better than reported figures €m Industry Sector Margin target: 9-13% Underlying margin 11.2% Reported margin 10.1% Reported profit 3,861 IA DT BT OS IS MO Margin target 12-17% 11-16% 7-10% 10-12% 5-7% 5-7% Underlying margin 18.5% 13.9% 7.8% 8.6% 5.7% 2.8% PPA 1) -145 -
Slide 7: Year of transition 2008 incurred significant charges
Year of transition 2008 incurred significant charges Topics Charges FY 2008 €m Total cash outflow from FY 08 charges 2008 2009 ≥ 2010 Project reviews in rolling stock 241 €m €m €m 54 253 18 Restructuring charges for Mobility in Motion 151 129 Restructuring charges at Osram SG&A charges and c
Slide 8: Agenda 2009 – Managing through downturn
Agenda 2009 – Managing through downturn Close tracking of sales funnel Transparency Converting backlog to top line Enforcing project selection process with clear Risk management management commitments Internal control over financial reporting Executing SG&A program Cost reduction Driving
Slide 9: Top line priority – Converting backlog to sales
Top line priority – Converting backlog to sales €bn +12% 33.5 17.1 1.5 29.9 IA 1.4 4.8 DT 3.8 2.7 BT 2.3 7.2 IS 5.6 6.6 9.8 MO 16.8 17.3 Backlog Backlog 2009 2010 Revenue Sep 2007 Sep 2008 beyond 2010 Backlog figures unconsolidated and unaudited Page 9 December 2008 Capital Market Days 'Industry' Co
Slide 10: SG&A program on track
SG&A program on track SG&A Focus Topics €bn Absolute SG&A costs FY 2008 6.2 at prior-year level 6.0 6.0 0.2 SG&A costs improved relative to sales Related restructuring charges booked at corporate level Percent 16.6% 15.7% First SG&A-related personnel of sales 1) cost savings in 2009 Alread
Slide 11: Improved flexibility will sustain performance
Improved flexibility will sustain performance Get more flexible Lower breakeven point Focus Topics Higher proportion of headcount in emerging markets. Increased from Costs / Revenue 18% in 2003 to 34% in 2008 Revenues 2008 Increased share of temporary workers Extend Total costs Outsourcing eff
Slide 12: No compromise on tight control of project business
No compromise on tight control of project business Request for proposal Project selection Project execution Clear hurdle rate for margins Project controlling at lower end of target range Sector wide deployed Specific review criteria for milestone trend analysis project selection: Stringent
Slide 13: Cash has highest priority
Cash has highest priority Working capital management CAPEX allocation Further improve net working capital CAPEX 114% turns from good starting point of ratio 6.6 in 2008 110% Launched asset management 1+ initiative growth rate Î Dedicated team in place under 109% 108% experienced leadership Î Sla
Slide 14: Portfolio optimization drives performance
Portfolio optimization drives performance Financial acquisition criteria Industry Sector Creating value through technological leadership EPS accretive one year after completing Efficiency improvements Flexibility enhancement Productivity increase integration Industry Drive Industry Building EVA
Slide 15: Focused on Delivery – 2009 and beyond
Focused on Delivery – 2009 and beyond Agenda 2009 Tracking of sales funnel Conversion of backlog to sales Comprehensive risk Focused on execution management and performance Enforcing cost discipline Rigorous capital allocation Delivering on our targets Page 15 December 2008 Capital Market
Slide 16: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) Profit Total Sectors is reconciled to “Income from continuing operations before income taxes” under “Reconciliation to consolidated financial statements” in the table “Segment Information.” See our Financial Publications at our Investor Relati
Slide 17: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) Average Capital employed and average Assets for the fiscal year is calculated as a “five-point average” obtained by averaging Capital employed and Assets at the beginning of the first quarter plus the final figures for all four quarters of th
Slide 18: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Our capital structure target is based on an Adjusted industrial net debt divided by EBITDA (adjusted). For the calculation of Adjusted industrial net debt, we subtract from Net debt (defined as Long-term debt plus Short-term debt and current
Slide 19: Siemens investor relations contact data
Siemens investor relations contact data Michael Sen +49-89-636-33780 Munich Office +49-89-636-32474 US Office +1-408-464-2004 Internet: http://www.siemens.com/investorrelations Email: [email protected] Fax: +49-89-636-32830 Page 19 December 2008 Capital Market Days 'Industry' Copyright ©