Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Investor Day (April 2013)

34 slides from Siemens Aktiengesellschaft's investor day presentation, Apr 11, 2013

  1. Slide 1: Setting the standard for industry – Profit, growth and innovation

    Setting the standard for industry – Profit, growth and innovation Siegfried Russwurm CEO Industry Sector Capital Market Day Siemens Industry Hanover, April 11, 2013 Unrestricted © Siemens AG 2013. All rights reserved.

  2. Slide 2: Safe Harbour Statement

    Safe Harbour Statement This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on equity (after tax), or ROE (afte

  3. Slide 3: 2013 Hanover Fair: Siemens sets the pace in innovation and technology

    2013 Hanover Fair Siemens sets the pace in innovation and technology NX viewer on iPad Tecnomatix 10 TIA Portal V12 SIMATIC S7-1500 Integrated Drive Systems (IDS) Computer-aided design, engineering Simulation and and manufacturing optimization of robotized One engineering production plants tool for

  4. Slide 4: Building long-lasting, 'sticky' business relationships

    Building long-lasting, 'sticky' business relationships Typical transaction is 'over the counter' Typical customer decision making Order intake today, delivery tomorrow is 'contract for model lifetime'  Number of orders per day: >10,000  Oerlikon Barmag 'Wings' fiber  Average order volume: €3,500

  5. Slide 5: A multitude of strategic business partnerships

    A multitude of strategic business partnerships Deep and long-lasting mutual commitment Long-term partnership with BMW  First automotive customer for TIA Portal 1)  In all plants worldwide until 2027  For efficient BMW production standard development  SIMATIC products and solutions BMW commits to

  6. Slide 6: Our approach to increasing our customers' confidence and trust

    Our approach to increasing our customers' confidence and trust TIA real PLM TIP virtual PLM Software SIMATIC PCS 7 SIMATIC IT TIA Portal V12 S7-1500 JT standard plus TIA Portal S7-1200 SIMATIC G SIMATIC S3 SIMATIC S5 SIMATIC S7 and TIA PLM TIA Portal for Automation and Drives 1958 1973 1979 1995 199

  7. Slide 7: Focused organization expanding market leadership

    Industry Sector Focused organization expanding market leadership Industry Sector Industry Drive Customer Automation Technologies Services Metals Technologies 1) Revenue 2012: €9.6bn Revenue 2012: €9.6bn 17,000 employees 2) 40,000 employees 2) 39,000 employees 2) #2 Maintenance 7,000 employees 2) #1

  8. Slide 8: Sector-led Business Unit Metals Technologies

    Sector-led Business Unit Metals Technologies Good product pull-through for Siemens Industry Market growth Characteristics €bn +4% 1)  EPC (Engineering, Procurement, 31 Construction) for iron and steel 25 production  1,300 customers worldwide  8 of 10 top steel makers are our 2012 2018e customers

  9. Slide 9: Industry FY 2012 and Q1 FY 2013: Financials affected by slow market demand

    Industry FY 2012 and Q1 FY 2013 Financials affected by slow market demand New Orders Revenue €bn €bn -3% 1) +2% 1) 20.2 20.0 19.6 20.5 -9% 1) -3% 1) 4.9 4.5 4.7 4.6 FY 2011 FY 2012 Q1 FY 12 Q1 FY 13 FY 2011 FY 2012 Q1 FY 12 Q1 FY 13 Profit Free cash flow €bn €bn 14.0% 2) 12.0% 2) 2.8 2.5 11.8% 2) 10

  10. Slide 10: Mid-term growth in the global economy is expected to remain uneven and volatile

    Mid-term growth in the global economy is expected to remain uneven and volatile Market growth Growth perspectives €bn Short/Mid-term Long-term CAGR 2) +4% 1) 180  Industrial markets seem to Importance +5% 16 be stabilizing of high-end Emerging markets 146 +5% 1) 55  China remains global growth pro

  11. Slide 11: Attractive vertical growth markets

    Attractive vertical growth markets Market growth by industries Customer demand and growth by verticals €bn Chemi-  Growth in emerging markets (petro & basic) and +4% 1) cals modernization in developed countries 180  Minimize engineering efforts for automation 18 in globally distributed projects Ot

  12. Slide 12: The pace of change in manufacturing has never been faster

    The pace of change in manufacturing has never been faster Growing importance of manufacturing industries in all economies 1 Increase efficiency 2 Reduce time to market 3 Enhance flexibility  Energy- and resource-  Merger of real and virtual  Increasing importance of efficiency are decisive produc

  13. Slide 13: Energy- and resource-efficiency are decisive cost factors

    1 Energy- and resource-efficiency are decisive cost factors Energy is often the single biggest cost factor in energy-intensive industries 57% 47% 36% 29% 27% Aluminum Cement Steel Paper Basic chemicals In Europe, industry Energy prices for accounts for about industry expected to rise some 25% of end

  14. Slide 14: Reduced time-to-market through simulation of product development and production

    2 Reduced time-to-market through simulation of product development and production process Product development process Product data in terabytes (TB) 1) with physical prototypes vs. virtual prototypes 2002 Physical Physical Physical Physical 296.0 (real) (real) (real) (real) Pro- function product pro

  15. Slide 15: Enhanced flexibility through use of industrial IT and industry software

    3 Enhanced flexibility through use of industrial IT and industry software Complete Ford F-150 program Trim Line 6 6 Cab 3 18 Drive 2 36 Box 4 144 Engines 3 432 Transmission 3 1,296 Rear Axle Ratio 7 9,072 Wheel 9 81,648 Tires 8 653,184 Thousands Seats 18 11,757,312 of marketable combinations Power S

  16. Slide 16: Our approach – Covering the entire product development and production process

    Our approach – Covering the entire product development and production process Services Production execution 5 Production 4 3 engineering Condition Production Monitoring Product design planning 2 SIMOTICS 1 TIA Portal Teamcenter NX Intelligent networking Use of most efficient technologies Integrated

  17. Slide 17: Our focus – Aim at high profitable growth areas

    Our focus – Aim at high profitable growth areas while continuously improving our competitiveness Strategic levers Vertical competence Exploit market potential in high-growth vertical markets Industrial IT and industry software Take the leading position in the merging of virtual and real product deve

  18. Slide 18: Common product platforms across applications and verticals

    Realize economies of scale by using common product platforms in various applications and verticals Industry offering: Food and Beverage Product platforms A SIMATIC, SIRIUS, SIMOTICS, SINUMERIK, Products and SIMOTION, Teamcenter, etc. System Solutions B Optimized packaging line; dairy functional tool

  19. Slide 19: Fast ROI for customers: 20% production rate increase at Coca-Cola Vietnam

    Fast ROI for customers 20% production rate increase at Coca-Cola Vietnam Customer and project Our offering  3 production plants  SIMATIC S7 control with more than technology 1,200 employees  Variable frequency drives  Demand exceeds capacity  Sensors  Full automation hardware  Migration servi

  20. Slide 20: Track record of successfully integrated acquisitions in industrial IT and software

    Continuous track record of successfully integrated acquisitions in industrial IT and industry software Comos software for process Ethernet communication products industries (2008) and network solutions (2012) Industrial quality Computer- and production aided motion management software (2012) (2012)

  21. Slide 21: Daimler selected our CAD software NX as platform for car and truck development

    Daimler selected our CAD software NX as their platform for worldwide car and truck development Extensive rollout of NX to Daimler and suppliers  Move engineering work to one new consistent product development platform:  > 20 development centers  most important suppliers  Increase flexibility and

  22. Slide 22: Growing importance of industrial IT and industry software

    Growing importance of industrial IT and industry software – high growth and attractive margins Market for industrial IT and industry software growing about 8 percent per year €bn Design +8% 1)  CAx and Industrial software for 28 virtual produc-  Collaborative Product Data Management tion (PLM Soft

  23. Slide 23: Boost productivity in existing drive system through simulation

    Boost productivity in existing drive system through simulation Press Line Simulation (PLS) for retrofit of a 17-year-old VW press line  Complete control, drive and safety technology from Siemens Industry  Virtual model simulating all mechanical, electrical and software components for motion contro

  24. Slide 24: Industrial service business: A better way to reach our huge installed base

    Industrial service business A better way to reach our huge installed base Industrial service market Further expansion of service business €bn  Focus on technology-based service business +4% 1)  Continuing reduction of low-margin service 33 business and resources related to it 26  Leverage vertica

  25. Slide 25: Proactive service approach enhances customer productivity and profitability

    Proactive service approach allows customers to significantly enhance productivity and profitability Customer and project Our offering  Codelco – the world's  SIMATIC PCS7 control biggest copper technology producer:  12 MW SIMINE mill  >18,000 people gearless drives  Seven mines in Chile  Overh

  26. Slide 26: Worldwide presence to tap global opportunities

    Worldwide presence to tap global opportunities We are where the market is – Revenue by Regions FY 2012 Network of competencies 78 factories worldwide: 3) Asia, Americas Australia,  Asia: 17 thereof Revenue 2) China 23%  Americas: 17 15% 25% 18.9 (23%) 1) (21%) 1)  Europe: 44; thereof Germany 28 7

  27. Slide 27: Balancing our resources according to market demand

    Balancing our resources according to market demand PLC, HMI Amberg Chengdu Erlangen Nanjing Inverter, controls Amberg Suzhou Control products for low voltage Tianjin Nuremberg Nashik Motors, Inverters St. Petersburg Mohelnice Bad Neustadt Motors Guadalajara Flexible and effective footprint covering

  28. Slide 28: €1.1bn productivity to support Siemens' profit target

    Industry 2014 €1.1bn productivity to support Siemens' profit target Siemens Total Sector Profit Industry's contribution to Siemens 2014 (as reported) €bn €bn ~50 bps ≥ 14.0% Total Sector ~150 bps ≥ 12% ≥13.5% profit margin 9.5% 12.0% 7.5 Exit Water Techno- 1.1 logies Integrate LMS Modest Less in lin

  29. Slide 29: Industry will deliver €1.1bn in savings by 2014

    Industry will deliver €1.1bn in savings by 2014 Industry 2014 program well underway  Optimizing global footprint Cost  Industry Process Optimization Project €1.1bn – 1 reduction  Procurement & Design to Cost ~40% material related  Increase R&D efficiency  Acquisition LMS  Exit water treatment

  30. Slide 30: Our way to execute Industry 2014: Improving our cost structure sustainably

    Our way to execute Industry 2014 Improving our cost structure sustainably Adjust manufacturing capacity Increase productivity in SG&A  Consolidation of manufacturing footprint:  Streamline headquarters  Mechanical Drives in Germany from 4 to 2  Reduction by ~500 FTE factories  Reduction by ~500

  31. Slide 31: Our way to execute Industry 2014: Strengthening our core activities

    Our way to execute Industry 2014 Strengthening our core activities Acquisitions Divestments / Ramp downs LMS  Sell water treatment activities:  €190m Revenue in FY 2012; ~1,200 FTE  ~€1bn revenue; 4,500 FTE  Excellent growth track record  Foundry in Wittgensdorf made ready for sale; ~500 FTE 

  32. Slide 32: Driving top and bottom line performance at Siemens Industry Sector

    Driving top and bottom line performance at Siemens Industry Sector Leverage industrial IT/industry software growth momentum for entire portfolio Accelerate growth in technology-based services portfolio €1.1bn gross productivity gains by 2014 Continued improvement in margin quality, profit margin of

  33. Slide 33: We are committed to deliver

    We are committed to deliver Industry Sector Management team Industry Drive Customer Automation Technologies Services Unrestricted © Siemens AG 2013. All rights reserved. Page 33 April 11, 2013 Capital Market Day Industry CEO Industry Sector

  34. Slide 34: Reconciliation and Definitions for Non-GAAP Measures

    Reconciliation and Definitions for Non-GAAP Measures This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on eq

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