Siemens Limited · NSE:SIEMENS
Siemens — Q2 2008 Earnings Presentation
16 slides from Siemens's earnings presentation, Apr 28, 2008
Slide 1: Siemens Ltd.'s Analyst Meet, Mumbai, 28th April 2008
Siemens Ltd.’s Analyst Meet Mumbai, 28th April, 2008 Apr 08 1
Slide 2: Presentation Overview
Presentation Overview Introduction of Siemens in India Financial Highlights Special Effects Action Areas Future Outlook Apr 08 2
Slide 3: Economic Review & Market Trends
Economic Review & Market Trends GDP growth stabilizing at around 8% as against growth of 9-10% Inflation risen from 4% to 7% in the last quarter; increased commodity prices Euro has appreciated further against the dollar/rupee Slowdown of the US economy & depreciation of the dollar Volatil
Slide 4: Siemens Companies in India
18 Siemens Companies Siemens in India in India has 18 legal entities as of 3/2008 Siemens Siemens Ltd. Ltd. 55.18% Siemens Siemens AG, AG, Germany Germany (SAG) (SAG) (SL) (SL) or or its its subsidiaries subsidiaries 44.82% 50% 100% 100% 51% 79.32% 50% 49% SITS SISL SIPS SBT Flender Ltd. 20.68% Othe
Slide 5: Siemens Ltd Group is active in three sectors
Siemens Ltd Group is active in three sectors Mirrors the portfolio of Siemens AG Cross-Sector Industry Energy Healthcare activities Automation Siemens Information Power Generation Medical Solutions and Drives Systems Ltd. Industrial Solutions Power Transmission Siemens Information and Services and D
Slide 6: Impacts key business data – 'Digital Effect'
Two basic characters of business 1. Base business Products, systems & solutions Many in numbers but smaller value Shorter business cycle – Less than one year 2. Mega Projects Complex projects with multiple interfaces Delivery cycle - 1 year upwards Few but high value Impacts key business
Slide 7: New Orders
New Orders Total Orders Rs. Mio. 2007 2008 % Rs. mio 2007 2008 % Q2 19”477 23”422 20% H1 70”752 42”542 -40% Q2 H1 40000 80000 70752 70000 30000 60000 50000 37888 19477 20000 1069 27% 40000 38% 30000 1972 10000 18408 23422 20000 42542 10000 30892 0 0 Q2 /07 Q2/08 H1 /07 H1/08 Apr 08 Discontinued Oper
Slide 8: Segmental figures – New Orders
Segmental figures – New Orders New Orders Q2 New Orders H1 35% 42% 49% 1% 45% 9% 7% 7% 5% Industry Power Transportation Med Industry Power Transportation Med Others Apr 08 8
Slide 9: Sales – Q2
Sales – Q2 1. Total Sales in Q2 increased by 1% 2. Sales on comparable basis increased by 11% in Q 2 Special Effects • Discontinued Operations of Siemens VDO, SBT, Com EN • Adjustment due to accounting standard 7 30000 Q2 30000 Q2 comparable Q2 22589 21292 1% 21424 21292 11% 1165 20000 20000 977 100
Slide 10: Sales – H1
Sales– H1 1. Total Sales in H1 up by 8% 2. Sales on comparable basis in H1 increased by 17% Special Effects • Discontinued operations of Siemens VDO, SBT, Com EN • Adjustment due to accounting standard 7 H1 H1 comparable 50000 50000 40568 37561 41733 37561 8% 1165 40000 40000 17% 1800 Q2 30000 30000
Slide 11: Segmental figures – Sales Turnover
Segmental figures Sales Turnover H1 Sales Turnover Q2 31% 37% 54% 49% 1% 1% 6% 6% 8% 7% Industry Power Transportation Med Others Industry Power Transportation Med Others Apr 08 11
Slide 12: Profit Before Tax
Profit Before Tax 1. Impact in some areas of operation 2. One time effect of losses in large projects due to 1. Cost Escalation 2. Ramp up costs related to R & D / Introduction of new technology 3000 Q2 6000 H1 5124 2500 2335 5000 63% 35% 2000 1730 4000 2264 1500 3000 2264 1000 2000 3137 1000 2860 5
Slide 13: Issues & corrective actions
Issues & corrective actions Source of Problem Corrective Actions 1. Improve overall risk management 70% Subcontractor quality 2. Improve Competence Management 3. Develop alternate sources for purchasing Increased cost for 30% resources 4. Improve sub-contract management Apr 08 13
Slide 14: Highlights at a glance – Siemens Ltd
Highlights at a glance – Siemens Ltd Quarter Period Quarter Period ended ended In Mio.Rs. ended +/-% ended March 2007 +/-% March March 2008 March 2008 2007 gg New orders 23''422' 19''477' 20% 42''542' 70''752' -40% Sales 21''424' 21''292' 1% 40''568' 37''561' 8% UOV 95''888' 108''839' -12% 95''888'
Slide 15: Future Outlook – "Go for 2"
Future Outlook 1. Investment led growth a. Capacity enhancement kicked off b. Products/portfolio expansion with increased R&D and localization c. Exploring new markets/exports 2. Boosting profitability a. Optimization of processes b. Rationalization of resources through shared services “Go for 2” Do
Slide 16: Thank You
Thank You Apr 08 16