Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (February 2006)
41 slides from Siemens Aktiengesellschaft's investor day presentation, Feb 23, 2006
Slide 1: Healthcare and Technology – a fascinating opportunity
Medical Solutions Group Healthcare and Technology – a fascinating opportunity Erich R. Reinhardt Capital Market Days February Siemens Capital 23-24, 200623-24, 2006 Market Days, February Page 0
Slide 2: Safe harbor statement
Safe harbor statement This presentation contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified either orally or in writing by words as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estima
Slide 3: Our vision
Our vision We help our customers to provide … …high quality and patient-centered care ... ... along the healthcare continuum… ... with best processes… … and with proven outcomes. Prevention Diagnosis Therapy Care Early Detection Siemens Capital Market Days, February 23-24, 2006 Page 2
Slide 4: Megatrends provide opportunities for growth
Megatrends provide opportunities for growth Relevant Major Major Growth Megatrend Implication Challenges Opportunities Demographic Growing Inefficient Integrated IT systems Change demand for healthcare healthcare systems Earlier i.e. aging diagnosis & and growing intervention population Risi
Slide 5: Our strategy - Improving healthcare efficiency
Our strategy - Improving healthcare efficiency + Quality _ Cost of Care of Care By: Innovation and Process Optimization Siemens Capital Market Days, February 23-24, 2006 Page 4
Slide 6: Profitable growth > 2x GDP
Profitable growth > 2x GDP Cost Position Innovation Target: Gain market share > 1pt/year Siemens Capital Market Days, February 23-24, 2006 Page 5
Slide 7: Our portfolio is comprehensive
Our portfolio is comprehensive Workflow Know-how Services Diagnostic and Therapeutic Networking Healthcare Technologies IT Systems Including Molecular Medicine: Proteomics, Genomics Optimization of Healthcare Workflow IT and Molecular Medicine are key Siemens Capital Market Days, February 23-24, 200
Slide 8: Global player with a balanced regional structure
Global player with a balanced regional structure Divisions Americas Europe Asia Manufacturing Sites Oxford Hoffmann Estates MR (Chicago) Erlangen/Forchheim MI AX, SP, CT, GS, MR, A AX HS, CO, RV, SW Kemnath CO Piscataway Rudolstadt Kyongju-si Concord A RV US OCS Wuxi Mountain View
Slide 9: Customer focused organization
Customer focused organization External Driven by Customers customer requirements Sales & Services Electromedical Special Systems Systems covered via Molecular Imaging X-Ray Systems Internal Global Solutions Angiography Tomography Oncology Care Driven by Healthcare IT Computed (S.A.T. GmbH) Resonance
Slide 10: We cover all major clinical fields
We cover all major clinical fields Radiology Neurology Cardiology Oncology Orthopedics TM Urology syngo TM Soarian Vascular Diseases Womens’ Health Molecular Imaging Siemens Capital Market Days, February 23-24, 2006 Page 9
Slide 11: Our market is expected to grow 6% p.a.
Our market is expected to grow 6% p.a. (in € billions; currency adjusted) +6% p.a. 41.4 34.8 +7% p.a. 6.4 Other (Oncology, Audiology, Global Solutions) 5.3 +8% p.a. 13.2 Healthcare IT 10.4 +4% p.a. 7.5 Product related service 6.6 +5% p.a. Imaging Systems 12.5 14.3 (X-Ray, CT, MR, MI, US) 2004 2007 W
Slide 12: 2005 was another successful year for our group
2005 was another successful year for our group Group profit 11.2% 13.4% 15.1% 14.8% 12.8% Highlights margin 8.4 8,4 8.4 8,4 8.6 8,6 Continuing Med 7.8 7,8 8.1 8,1 introduction of Perfor- trendsetting mance* “firsts” (in € billions) Further market share New gains in 2005, notably orders 7.2 7,2 7
Slide 13: Continuous productivity gains
Continuous productivity gains (accumulated cost productivity in € billions) 4.2 1998 1999 2000 2001 2002 2003 2004 2005 Siemens Capital Market Days, February 23-24, 2006 Page 12
Slide 14: Expanding our position in emerging markets
Expanding our position in emerging markets China Sales to Chinese Customers India Sales to Indian Customers (in RMB billions) (in INR billions) 5.1 + 15% p.a. 2.9 + 33% p.a. 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 Siemens Capital Market Days, February 23-24, 2006 Page 13
Slide 15: Shifting cost base to emerging markets
Shifting cost base to emerging markets (Number of employees in emerging markets) ~ 4,000 India ~ 2,470 ~ 40% China ~ 2,000 ~ 27% 35% ~ 1,570 ~ 1,500 ~ 1,030 India ~ 90% ~ 700 China ~ 400 ~ 5% 2002 2003 2004 2007 2002 2003 2004 2007 R&D and manufacturing SW development Siemens Capital Market Days, Fe
Slide 16: M&A is an integral part of our strategy
M&A is an integral part of our strategy Major Acquisitions Major JVs / Investments Major Divestments 2005: CTI 2004: Mochida (35%) 2004: Life Support Systems 2004: CADVision 2003: Dräger Med (35%) 1998: Dental Systems 2003: OMT 2002: Mindit (75%) 1994: Pacemakers 2000: Shared Medical 1997: Trixell (
Slide 17: Stronger operations and future growth platforms
Stronger operations and future growth platforms Shared Medical Systems Acuson CTI (Healthcare IT) (Ultrasound) (PET / Molecular Imaging) Expansion Complementary Access to leading of served market products (Cardio) PET technology Immediate Immediate R&D of 2nd gen. #1 position leadership
Slide 18: Major investments in promising technologies and applications
Major investments in promising technologies and applications Examples Acquisition of CADVision, Israel Computer Aided Diagnosis JV with MeVis Technologies, Germany „lab-on-a-chip“ Acquisition of „Quicklab“-project from Infineon Equity investment in peS GmbH, Germany Capacitive US-Transducers
Slide 19: Innovation leadership in MR - market leader with Tim technology
Innovation leadership in MR - market leader with Tim technology Tim * Estimated market share development: Siemens +13 points 40% Trio** Espree** Avanto** C! Ongoing introduction of „firsts“ 10% * Total Imaging Matrix 2000 2005 ** Tim systems MR orders increased 12% p.a. in the last 5 years while Sie
Slide 20: Innovation leadership in MR - Tim technology
Innovation leadership in MR - market leader with Tim technology Tim T1 TSE with 1 x 1 x 3 mm MAGNETOM Trio resolution acquired in 3:24 min per step with PAT 2, showing several metastases Image source: NYU, NY, USA Siemens Capital Market Days, February 23-24, 2006 Page 19
Slide 21: Innovation leadership in MR - Diffusion Tensor Imaging
Innovation leadership in MR - Diffusion Tensor Imaging Image Source: Van J. Wedeen, Ruopeng Wong, Martinos Center; MGH/Harvard; Boston, USA Siemens Capital Market Days, February 23-24, 2006 Page 20
Slide 22: Innovation leadership in MR - Molecular Imaging: MR/PET
Innovation leadership in MR - Molecular Imaging: MR/PET Superposition of MR and PET images: Image Source: University of Erlangen First prototype of HYBRID MR/PET system : Better soft-tissue contrast Lower radiation enables follow-up studies fMRI, diffusion, perfusion and spectroscopy in one ex
Slide 23: Innovation leadership in molecular imaging - our pipeline is filled
Innovation leadership in molecular imaging - our pipeline is filled FDDNP, an imaging biomarker for Neuro-Diseases CN 18F CN N Status Human studies in progress under RDRC. IND filing in preparation. Clinical trials begin in early 2006 MI orders increased 14% p.a. in the last 5 years while Siemens no
Slide 24: Innovation leadership in CT - the world's first Dual Source CT
Innovation leadership in CT - the world‘s first Dual Source CT Somatom Definition: Two straton-tubes & Two detectors CT orders increased 13% p.a. in the last 5 years while Siemens nominal Capital Market market Days, February 23-24, 2006 growth was 2% p.a. Page 23
Slide 25: Innovation leadership in CT - Dual Source CT
Innovation leadership in CT - the world‘s first Dual Source CT Computed Tomography: Dual Source Imaging (SOMATOM Definition) Diastole Systole Image Source: University of Erlangen Faster than a beating heart Siemens Capital Market Days, February 23-24, 2006 Page 24
Slide 26: Managing and analyzing image data volumes is the greatest challenge
Today, managing and analyzing image data volumes is the greatest challenge 2 Slice CT Dual Source CT 25 cm scan range 200 cm scan range 41 axial images 3,687 axial images 6 mm thickness 0.75 mm thickness Image Source: University of Erlangen 30 sec. scan: 3,687 axial images compared to 41
Slide 27: Innovation leadership in computer aided diagnosis - clear platform strategy
Innovation leadership in computer aided diagnosis – clear platform strategy Reliable Extraction & Meaningful Inference from Non-structured Data REMIND™Platform Detection of Changes Extract Combine Assess Prognosis Assessment changes Patient ID for Clinical Trial Physician Lab Notes results Med
Slide 28: Soarian and Syngo cover the continuum of care
Soarian and Syngo cover the continuum of care TM syngo Radiology Diagnostic Cycles Laboratory Resource ECG planning ADT OR, Onco, Cardio POE Administrative TM Clinical Therapeutic Cycles Cycle Soarian Cycles Document Station syngo TM Bill ADT Intensive Rehabilitation Care Cycles Ward TM syngo Siemen
Slide 29: Soarian's unique value proposition
Soarian‘s unique value proposition – the industry‘s only workflow engine Soarian key differentiators Anytime, anywhere access Web-native platform Intuitive, smart user interface Runs on anything with a browser Manages entire processes; workflow engine insures you do the right thing Integrate
Slide 30: Soarian rapidly gains ground
Soarian rapidly gains ground – The momemtum confirms our strategy Live Contracted In December 2005, the first two full-fledged Soarian systems went live: Susquehanna, Chester County Approx. 23,000 users are now operating Soarian on a daily basis Over one billion patient results have been conve
Slide 31: We generate value for our customers
We generate value for our customers The Heart Nebraska STS / ACC Center Heart average of Indiana Hospital Bypass Operations Length of stay (days) 9.0 6.4 4.8 Mortality (%) 2.1 1.1 0.9 Cleveland Clinic Gold Standard Care / Nursing Dissatisfaction (%) 20 2 6 Sources (04/05): Society of Thoracic Surgeo
Slide 32: Proven outcomes in capturing savings
Proven outcomes in capturing savings Bed Management eliminates Additional revenue potential 50% of manual steps of US$ 900,000 annually The Chester County Hospital Cardiac catheter lab report Annual revenue increase of US$ 720,000 turnaround time is reduced South Carolina Heart Center from 48 ho
Slide 33: We drive innovation by understanding customer and patient needs
We drive innovation by understanding customer and patient needs Acute case: „I want to Patient is sick / injured understand ...“ Clinical workflow / (multiple) pathways Patient flow: Specific physical movement Workplaces for physicians, nurses and administration Requirements for hardware, software a
Slide 34: Employee education in clinical workflow
Employee education in clinical workflow Med Learning Academy (online) Experience Know Create Customers’ Customers’ Customers’ World Business Competitiveness Three levels of learning for all 32,000 employees (Introductory, Intermediate, Expert) MBA-Program started Siemens Capital Market Days, Feb
Slide 35: Molecular Medicine and IT will shape the future of healthcare
Molecular Medicine and IT will shape the future of healthcare Innovations in Healthcare In-Vitro Molecular Knowledge- Diagnostics Imaging Driven Healthcare Leverage novel Visualize and localize Integrate medical molecular molecular processes information and technologies for in vivo for diagnosis ena
Slide 36: IT and Molecular Medicine are key for enabling efficiency gains
IT and Molecular Medicine are key for enabling efficiency gains IT and Molecular Medicine Prevention / Diagnosis Therapy Care Early Detection Molecular In vitro-molecular Molecular Near patient- markers diagnostics with design monitoring of for pre- - new technologies of new drugs health sta
Slide 37: New potential focus areas are identified and under exploration
New potential focus areas are identified and under exploration Workflow-oriented IT Diagnosis Therapy Prevention, in vitro-Diagnostics in vivo-Diagnostics Early (IVD) (Imaging) Care Detection Contrast HW IT Marker HW IT Physical Drugs Media Fields currently addressed by Med Siemens Capital Market Da
Slide 38: New business opportunities are large and fast growing
New business opportunities are large and fast growing (in € billions; currency adjusted) ~ 130 New potential focus areas, e.g.: ~ 96 Contrast media +13% p.a. In vitro diagnostics ~ 89 (incl. Biochips and mass spectroscopy) Tissue engineering ~ 61 +6% p.a. Major market segments ~ 41 ~ 35 curren
Slide 39: Executive Summary
Executive Summary The biggest challenge of healthcare – improving efficiency – opens up large business opportunities Our strategy addresses this challenge through innovation and cost optimization and recognizes the key role of IT We leverage business opportunities by enhancing our portfolio, b
Slide 40: Reconciliations and definitions
Reconciliations and definitions ”Group profit from Operations” is reconciled to ”Income before income taxes” of Operations under ”Reconciliation to financial statements” on the table ”Segment information.” See ”Financial Reports/Fiscal 2006, Quarter 1 / Financial Statements” at our Investor Relation
Slide 41: Siemens Investor Relations Team
Siemens Investor Relations Team Marcus Desimoni +49-89-636-32445 Frank Heffter +49-89-636-34095 Irina Pchelova +49-89-636-33693 Christina Schmöe +49-89-636-32677 Susanne Wölfinger +49-89-636-30639 Webpage: http://www.siemens.com Investor Relations e-mail: [email protected] Fax: +49-89-63