Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Press and Analyst Conference, Munich, August 2, 2018
30 slides from Siemens Aktiengesellschaft's conference presentation, Aug 2, 2018
Slide 1: Vision 2020+ Shaping the future Siemens
Vision 2020+ Shaping the future Siemens Joe Kaeser, President and CEO Press and Analyst Conference | Munich, August 2, 2018 Unrestricted © Siemens AG siemens.com
Slide 2: Notes and forward-looking statements
Notes and forward-looking statements This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forw
Slide 3: Why now?
Siemens Vision 2020+ Goals of Vision 2020 have been largely achieved – Why Siemens in a strong position The best time to reinvent yourself now? is when you’re strong Adaptability is a key prerequisite in the digital age Unrestricted © Siemens AG 2018 Page 3 Munich, August 2, 2018 Press and Analyst C
Slide 4: Vision 2020+
Siemens Vision 2020 We delivered on what we promised, execution ahead of time Value “Vision 2020+” Scale up Strengthen core Drive performance Ownership culture: >300,000 employee shareholders 2015 2016 2017 2018 2019 2020 Strategic Operational Accelerated growth Optimization direction consolidation
Slide 5: Drive Performance: Profitable growth and significant investment in innovation
Drive Performance: Profitable growth and significant invest in innovation Revenue Net Income €bn +9% €bn +40% 75.9 83.0 6.2 4.4 FY 2013 FY 2017 FY 2013 FY 2017 Order Backlog Gross Margin R&D €bn +26% €bn +270bps +20% 100 126 27.4% 30.1% 4.3 5.2 FY 2013 FY 2017 FY 2013 FY 2017 FY 2013 FY 2017 Unrestr
Slide 6: Strengthen Core: Setting the course for renewable energy, mobility and healthcare
Strengthen Core: Setting the course for renewable energy, mobility and healthcare businesses for long-term value creation 1| Areas of growth? 2| Potential profit pool? 3| Why Siemens? Stake of 17.34% sold 4| Synergetic value? 5| Paradigm shifts? Merger59% Siemens closed share Successful IPO achieved
Slide 7: Scale up: Strengthen leadership in Industrial Digitalization across domains
Scale up: Strengthen leadership in Industrial Digitalization across domains Rapid growth of digital business • Continued value creation through €bn ~+25% market outperformance and margin ~+80% ~6.5 expansion mostly in Digital Factory ~5.2 • Holistic digital twin along the value chain (Design / Produ
Slide 8: mendix is uniquely positioned to boost our digital offerings
mendix is uniquely positioned to boost our digital offerings mendix at a glance Attractive market growth … Company: Leading low-code platform Rapid Application Development allows apps In €bn CAGR 18 created 10x faster based on low-code >40% Founded 2005, >400 Employees 3 Customer: >90% recurring rev
Slide 9: Goals of Vision 2020 largely achieved
Goals of Vision 2020 largely achieved Goal KPI 1 Implement stringent corporate governance €1 billion in cost savings achieved by FY 2016 Tap growth fields 2 Strengthen portfolio > 8% margin in underperforming businesses ROCE 15-20% 3 Execute financial target system Growth > most-relevant competitors
Slide 10: Global megatrends shaping our future markets
Global megatrends shaping our future markets Demographic Change Digitalization Globalization >20% of global population over the age 50bn IoT devices connected by 2020 Global trade will increase of 60 in 2050 4-fold until 2050 0.9bn 12% 2.1bn 21% 50bn 4x 2018 2050 2015 2050 Urbanization 23bn Climate
Slide 11: Paradigm shifts create mostly opportunities for growth
Paradigm shifts create mostly opportunities for growth Strategic units Divisions SHS Siemens SGRE PG/ PS BT EM PD DF Alstom1) D Continuously A strong trend towards Overcapacities in Automation and central power Digitalization Resilience from across verticals, Power Service incl. PaaS E busines
Slide 12: A fast growing and attractive IoT integration services market is emerging
A fast growing and attractive IoT integration services market is emerging to realize the IoT world IoT integration services are essential in convergence of IT and OT Large, high growth market emerging IoT integration services market1), in €bn Implemen- Opera- IT Consulting tation tions IT software ~
Slide 13: Siemens is expanding its IoT platform offering: Integration Services
Siemens is expanding its IoT platform offering: Integration Services to support the digital transformation of our customers Customer value: Holistic digital platform offering Siemens well positioned to leverage IoT integration services as growth engine Customer Value Chain Design Operate Service Ded
Slide 14: Vision 2020+: Technology is the enabler – the purpose makes the difference
Vision 2020+: Technology is the enabler – the purpose makes the difference SCIENCE AND TECHNOLOGY SOCIO-ECONOMIC FACTORS FUTURE SCENARIOS VISION 2020+ Fall in Working Age Population Population Growth Internet Power to the Individual Radical Life Extension Business to Society Millennial Focus on Purp
Slide 15: Operating model based on purpose and ownership culture
Operating model based on purpose and ownership culture Purpose Business to Society Value creation for all stakeholders We make real what matters Businesses drive our purpose Corporate Regions Development are part of the business Services holds us together enable and support Governance sets the frame
Slide 16: Siemens Industrial Businesses: Focus drives value creation
Siemens Industrial Businesses Focus drives value creation Operating Companies Strategic Companies Gas and Smart Digital 1) Power Infrastructure Industries 1) Pending regulatory approval IPO + + PG EM BT DF PD MO WP HC Divisions Unrestricted © Siemens AG 2018 Page 16 Munich, August 2, 2018 Press and
Slide 17: Gas and Power: Managing for value in a low growth environment
Gas and Power Managing for value in a low growth environment Gas and Power (GP) FY 2017: Revenue: ~€21bn | Profit margin: ~9% | Employees: ~71 thousand Power Generation Operations Power Generation Oil & Gas • Key target verticals: Utilities, IPPs, TSOs, O&G and Industrial Power • Sharper focus on go
Slide 18: Smart Infrastructure: Accelerating growth building on a strong core
Smart Infrastructure Accelerating growth building on a strong core Smart Infrastructure FY 2017: Revenue: ~€14bn | Profit margin: ~11% | Employees: ~71 thousand (SI) Regional Solutions & Services • Fast-growing infrastructure Buildings markets at intersection of Digital Grid Infrastructure & Industr
Slide 19: Digital Industries: Driving the digital transformation of discrete and process industries
Digital Industries Driving the digital transformation of discrete and process industries Digital Industries (DI) FY 2017: Revenue ~€14bn | Profit margin ~16% | Employees ~78 thousand Factory Automation Process industry Discrete industry Product Process Product Production Production Production Engine
Slide 20: Strategic companies already with full entrepreneurial flexibility
Strategic companies already with full entrepreneurial flexibility Siemens governing with an industrial mindset & creating optionality 1) Share price (%) Market share 2017 (in GW) Combined financials (Sep 30, 2017) 140 SGRE Backlog (€bn) 59.3 130 17% 120 Revenue (€bn) 15.6 110 Others 48% 15% Vestas A
Slide 21: Small and Medium Enterprises will be managed for value creation
Small and Medium Enterprises will be managed for value creation Small and Medium Enterprises SME Strategic direction Siemens Postal, Parcel & Airport Logistics (SPPAL) PD Mechanical Drives • Medium-sized business setup FY 2017 FY 2023 (Flender) Target €bn • Dedicated target setting PD Solutions ~5 •
Slide 22: Vision 2020+: Focus and growth drive value creation
Vision 2020+ Focus and growth drive value creation Drivers Mid-term impact • Core markets: business focus leads to market share gains Accelerated • Adjacent markets: tapping growth fields driving structural growth comp. revenue + 2 ppts growth CAGR • Enhancing business mix drives margin quality • Op
Slide 23: Siemens Financial Framework: Ambitious financial goals based on benchmarks
Siemens Financial Framework Ambitious financial goals based on benchmarks Siemens (targets over the cycle) Growth Siemens Cash conversion comparable revenue growth Industrial Businesses margin3) Cash conversion rate (CCR) 4 – 5% 11 – 15% CCR = 1 – growth rate4) Capital efficiency Capital structure D
Slide 24: Tangible KPIs will define success
Tangible KPIs will define success GOAL KPI • Margin lift at Industrial Businesses + 2 ppts 1 Grow company value • EPS growth > revenue growth1) 2 Sharpen business focus in E-A-D • Accelerated comparable revenue growth + 2 ppts CAGR 3 Be a partner of choice for our customers • > 20% improvement in cu
Slide 25: Vision 2020+: Raising the bar
Vision 2020+ Raising the bar Value Ultimate value creation Leading in all businesses Transformation Focus Anticipate markets and trends Raise Scope over scale the bar 2019 2020 2021 2022 2023 Key: Foster Ownership Culture and strengthen entrepreneurial focus Unrestricted © Siemens AG 2018 Page 25 Mu
Slide 26: Milestones for implementation
Milestones for implementation Announcement of Vision 2020+ (Q3 FY 2018) Start transition to new organizational structure (October 1, 2018) New organization implemented (March 31, 2019) Capital Market Day (H1 FY 2019) SME break even FY 2020 Support and services efficiency targets achieved until FY 20
Slide 27: Appendix
Appendix Unrestricted © Siemens AG 2018 Page 27 Munich, August 2, 2018 Press and Analyst Conference
Slide 28: Reporting structure
Reporting structure Current reporting structure Future reporting structure Power and Gas Gas and Power Energy Management Smart Infrastructure Building Technologies Digital Industries Mobility Digital Factory Siemens Alstom (until closing: Mobility) Process Industries & Drives Siemens Healthineers Si
Slide 29: Market oriented set-up of Operating Companies
Market oriented set-up of Operating Companies Divisions Old Structure Operating Companies New structure Power Generation Products and Solutions Power Generation PG Oil & Gas Oil & Gas Power Generation Services GP Transmission EPC Projects Transmission Tr Solutions Service & Digital HV Products, Tran
Slide 30: Acquisition mendix: Perfect fit to further expand leadership in IoT & Digital Enterprise
Acquisition mendix Perfect fit to further expand leadership in IoT & Digital Enterprise Rationale • Highly attractive business for low-code development: CAGR >40% until 2022 Area of growth • Large untapped market potential • Strong margin profile with gross margin ~80% - typical for software compani
Siemens — Press and Analyst Conference, Munich, August 2, 2018 on 6ix