Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Bank of America Merrill Lynch Conference 2016
23 slides from Siemens Aktiengesellschaft's conference presentation, Mar 18, 2016
Slide 1: Stringent execution of Vision 2020
Stringent execution of Vision 2020 Joe Kaeser, President and CEO Bank of America Merrill Lynch Conference, London, March 18, 2016 Unrestricted © Siemens AG 2016 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: Siemens Vision 2020 – Delivered as promised up to now
Siemens Vision 2020 – Delivered as promised up to now Value Scale up • Innovation initiative • Customer and market focus • Digitalization at work Strengthen core • Stringent capital allocation Drive performance • Cost reduction support functions (€1bn) • Global footprint optimization • Fix underperf
Slide 4: Siemens Vision 2020 – The "System" matters
Siemens Vision 2020 – The “System” matters Global trends Market development (illustrative) Digital 7-9% transformation market growth Digitalization Globalization 4-6% Automation market growth Urbanization Demographic Electrification 2-3% market growth change Climate change Today Mid term – 2020 Powe
Slide 5: Platforms lead products
Platforms lead products Sinalytics connects more than 300,000 devices Sinalytics Productivity Energy efficiency Common technology platforms EM WP Data analytics PG DF PS Sinalytics Data visualization Sinalytics Modeling/Analysis Customer value through Data management applications PD MO Data integrat
Slide 6: The E-A-D system
The E-A-D system Vertical Software and Digital Services key drivers for profitable growth Digitalization Vertical software Digital services ~€3.1bn ~€0.6bn +~16% • Build on deep domain know-how Revenue FY 2015 Revenue FY 2015 • Leverage M&A and R&D invest ++ +++ Automation Profitability Profitabilit
Slide 7: Siemens unique digital value proposition in Oil & Gas
Siemens unique digital value proposition in Oil & Gas – Applying E-A-D competence and experience 00110101001110010011010010110110101001010100111000101110110010101001001001001 Domain Application Analytics 00110101001110010011010010110110101001010100111000101110110010101001001001001 know-how know-how
Slide 8: Siemens creates customer value by providing efficient solutions
Siemens creates customer value by providing efficient solutions Siemens Oil & Gas exposure Chevron El Segundo Refinery in % of FY 15 orders Upstream • Operations intelligence platform XHQ Midstream • Real-time management of operations Downstream • 8% reduction in operating expenses • 18% less enviro
Slide 9: Balanced end market exposure supports growth ambition
Balanced end market exposure supports growth ambition in a difficult macro and geopolitical environment Sluggish development in global manufacturing • Moderate market growth driven by construction, PMI Manufacturing automotive and consumption 60 • Wind benefitting from five year PTC extension 55 50
Slide 10: Appendix
Appendix Unrestricted © Siemens AG 2016 Page 10 London, March 18, 2016 Bank of America Merrill Lynch Conference
Slide 11: Digital Services powered by Sinalytics provide customer value and attractive business cases
Digital Services powered by Sinalytics provide customer value and attractive business cases Power Generation Digital Services Productivity Energy efficiency 0 500 Starts 1,000 1,500 2,000 1.02 GT Efficiency 1.00 EM WP 0.98 0.96 PG 0.94 DF PS 0.92 Advanced Mature Sinalytics Remote diagnostics and Ass
Slide 12: Customers focus on efficiency and productivity in a low oil price world
Customers focus on efficiency and productivity in a low oil price world Cash costs mostly covered by current oil price Main customer requirements in Oil & Gas industry 70 Cash cost (US$/bbl) 60 50 Brent $40.39 [March 11, 2016] • Higher productivity 40 • Improved reliability and availability 30 20 •
Slide 13: Structural changes at Process Industries and Drives require adjustments
Structural changes at Process Industries and Drives require adjustments Structural and technological changes Industrial transformation in Process Industries and Drives • Realignment of capacities in Large Drives and • Increasing competitive intensity in the Oil & Process Solutions business Gas, Meta
Slide 14: Guidance FY 2016
Guidance FY 2016 We anticipate further softening in the macroeconomic environment and continuing complexity in the geopolitical environment in fiscal 2016. Nevertheless, we expect moderate revenue growth, net of effects from currency translation. We anticipate that orders will materially exceed reve
Slide 15: One Siemens Financial Framework
One Siemens Financial Framework Clear targets to measure success and accountability One Siemens Financial Framework Siemens Growth: Capital efficiency Capital structure Siemens > most (ROCE2)) (Industrial net debt/EBITDA) relevant competitors1) 15 – 20% up to 1.0x (Comparable revenue growth) Total c
Slide 16: Financial Cockpit
Financial Cockpit Orders Revenue Profit Industrial Business (IB) Net Income in €bn +19% Comp. +1% in €bn in €bn (+27%) (nom.) (+8%) +10% +42% 22.8 1.8 2.0 1.6 18.0 17.4 18.9 1.1 10.4% 10.7% Margin 10.2% 10.4% B-t-B 1.03 1.21 Q1 FY 15 Q1 FY 16 Q1 FY 15 Q1 FY 16 Q1 15 Q1 16 Q1 15 Q1 16 EPS (“all-in”)
Slide 17: Substantial shareholder return through dividends and share buybacks
Substantial shareholder return through dividends and share buybacks Dividend and payout ratio Outstanding shares (in million) Dividend per share Dividend payout ratio 950 -105m shares 57% 50% 42% 48% 900 38% 850 €5.401) 800 750 +6% 700 €3.30 €3.50 €3.00 €3.00 €3.00 100 50 0 FY 2007 FY 2011 FY 2015 F
Slide 18: Accelerated execution of functional cost reduction measures
Accelerated execution of functional cost reduction measures Target achievement of ~€1bn is on track Cumulated effects of savings €700m – €800m – €1bn €1bn €900m €900m €400m €150m – €200m FY 2015 FY 2016e FY 2017e View on distribution of savings as of Q2 FY 2015 View on distribution of savings as of
Slide 19: Underperforming businesses show improvement
Underperforming businesses show improvement Underperforming businesses Unconsolidated Revenue FY 2015 in €bn ~15 ~1.2 ~14 Fiscal 2013 2014 2015 2017e 2020e Siemens Year Compressors Margin -4% -3% +1% ~6% >8% • Tight monitoring of business plans • Footprint optimization • Sharpening business scope Un
Slide 20: Pursuing our industrial software strategy
Pursuing our industrial software strategy Unmatched offering for design, simulation and testing Year of acquisition 3D Design CAD Software NX Design, Nastran and PLM Software Teamcenter • Streamlines and accelerates the product development process in a collaborative environment 2007 • Includes a mod
Slide 21: CD-adapco acquisition of a software technology leader
CD-adapco Acquisition of a software technology leader in a fast growing industry Company description and strategic rationale Key customer industries (% of billings FY 2015) • CD-adapco is a leading provider of Computational Fluid Dynamics (CFD) simulation Ground software, a sub-market of CAE, reduci
Slide 22: Financial calendar
Financial calendar March 18, 2016 March Bank of America Merrill Lynch Conference (London) April May 4, 2016 Q2-Earnings Release and Roadshow UK (London) May May 9, 2016 Roadshow Germany (Frankfurt) Unrestricted © Siemens AG 2016 Page 22 London, March 18, 2016 Bank of America Merrill Lynch Conference
Slide 23: Investor Relations
Siemens Investor Relations contacts Investor Relations Internet: www.siemens.com/investorrelations Email: [email protected] IR-Hotline: +49 89 636-32474 Fax: +49 89 636-32830 Unrestricted © Siemens AG 2016 Page 23 London, March 18, 2016 Bank of America Merrill Lynch Conference
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