Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (February 2008)
44 slides from Siemens Aktiengesellschaft's investor day presentation, Feb 28, 2008
Slide 1: Siemens Healthcare – Workflow & Solutions Division
Siemens Healthcare – Workflow & Solutions Division Tom Miller, CEO Workflow & Solutions Division Capital Market Day Siemens Healthcare Munich, February 28, 2008 Copyright © Siemens AG 2008. All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,”
Slide 3: Our Customers' Decisions are both Product- and Solution-Oriented
Our Customers’ Decisions are both Product- and Solution-Oriented Workflow-oriented IT Diagnosis Prevention and Early Therapy Care Detection In Vitro In Vivo Diagnostics Diagnostics (IVD) (Imaging) Diagnostics Imaging & IT Workflow & Solutions Jim Reid-Anderson Bernd Montag Tom Miller Radiography/Ang
Slide 4: Our Customers' Decisions are both Product- and Solution-Oriented
Our Customers’ Decisions are both Product- and Solution-Oriented Workflow-oriented IT Diagnosis Prevention and Early Therapy Care Detection In Vitro In Vivo Diagnostics Diagnostics (IVD) (Imaging) Workflow & Solutions Tom Miller Oncology Cardiology Neurology … Copyright © Siemens AG 2008. All rights
Slide 5: Our organization aligns with the market
Our organization aligns with the market Clinical Workflow has both vertical and horizontal elements Organization in healthcare Patient care according to disciplines and competencies Workflow follows diseases and practitioners … Card. Onco. Rad. Cardiologist General physicians Surgeon Radiologist … O
Slide 6: We are prepared for the next major trend in healthcare
We are prepared for the next major trend in healthcare Accredited Quality and Pay for Performance US hospitals must have 80% of US insurers now have accreditation to be paid by to Pay for Performance (P4P). Medicare/Medicaid P4P is a model for primary care JCAHO, primary accreditation body, conduc
Slide 7: What is workflow in healthcare?
What is workflow in healthcare? Workflow \wərk-flō\ n: a series of activities to produce a pre-determined result Industrial workflows are: Healthcare workflows are: Linear Non-linear Unidirectional Multi-directional Continuous Interrupt-driven Have limited complexity Have unlimited c
Slide 8: Healthcare Workflow Is an N-Dimensional Problem
Healthcare Workflow Is an N-Dimensional Problem Siemens has competence in all dimensions The space provides an opportunity for incremental market share gains Clinical Dimensions Regional level Cardiology Innovate Next Neurology Generation Standard of Care Enterprise level Oncology Radiology
Slide 9: The dimensions equal customer segmentation
The dimensions equal customer segmentation Our present portfolio allows workflow offerings for every segment Innovate Next Minister of Health: “How do I reduce costs Generation as % of GDP without rationing?” Standard of Care Hospital CEO: “How do I increase my bottom line, deal with the nursing sho
Slide 10: Short-term market share gains through efficiencies in current standards of care
In the short-term, market share gains will be realized by creating efficiencies in current standards of care We follow recognized clinical standards … Innovate Next Regional level Generation JCAHO Standard of Care ACC Enterprise level NINDS ACR etc. Disease level … to achieve world-class p
Slide 11: Workflow optimization in audiology
Workflow optimization in audiology Customer challenges Untapped consumer base due to low Increasing price pressure penetration (stigma associated with Low efficiency due to high efforts hearing instruments) – offers future in fitting of instruments growth potential Expanding the Target Audienc
Slide 12: Siemens hearing instruments and workflow for hearing care professionals
Siemens offers hearing instruments for an active lifestyle and workflow to support the hearing care professional Diagnosis Diagnosis Counseling Counseling Ordering Ordering Fitting Fitting Hearing Hearing training training Diagnosing the Finding the appropriate Scanning ear impression Fine tuning th
Slide 13: Workflow optimization in orthopedic surgery
Workflow optimization in orthopedic surgery Customer challenges Quality control Cost containment Trend to minimally invasive procedures Complex multi-disease cases Enhancing Surgical Decision Making and Precision Market Our growth growth 17% 5% CAGR 06-08 Currency adjusted Copyright © Siemen
Slide 14: Clinical and Proven Outcomes
Clinical and Proven Outcomes More predictable screw and implant placement Talus Study, Ekkehard Euler et al., Clinic of the University of Munich, Germany Copyright © Siemens AG 2008. All rights reserved. Page 14 February 28, 2008 Capital Market Day Siemens Healthcare
Slide 15: Clinical and Proven Outcomes: No post-op CT scan required
Clinical and Proven Outcomes No post-op CT scan required Intraoperative check instead of post-operative CT OR procedure Conventional C-arm Pre-op CT conventional 2D Post-op CT Preparation for 2nd intervention Costs Quality Intra-op check Intra-op revision ARCADIS Orbic 3D Pre-op CT Orbic 3D (if nece
Slide 16: Clinical and Proven Outcomes: Intra-operative revision
Clinical and Proven Outcomes Intra-operative “revision” – second surgery not necessary > 2,000 patients over last 5 years Intra-operative revisions in approx. 16% of all cases Spine 7.8% Pelvic girdle 9.5% Tibial head 11.5% Distal radius 13.1% Acetabulum 13.2% Pilon 25.0% Ankle joint 30.2% Calcaneus
Slide 17: Workflow optimization in radiation therapy
Workflow optimization in radiation therapy Customer challenges Can I introduce complex new How will I be sure my technology treatments without reducing throughput? investment is protected for the future? Efficiently Increasing the Quality of Therapy Market Our growth growth 10% 5% Radiation onco
Slide 18: ARTISTE: MLC with DAO
ARTISTE™: 160 MLC with DAO* The ideal combination for dose and time efficiency High plan quality Fully verified uncompromised IMRT Lowest dose to healthy tissue Lowest MUs due to DAO-IMRT Lowest leakage with 160 MLC™ Fast and efficient treatment delivery Treat complex cases in 5-10 minutes
Slide 19: Siemens DAO-IMRT vs. a leading competitor
Siemens DAO-IMRT vs. a leading competitor Siemens DAO-IMRT Leading competitor 575 MU ca. 6 min 81 seg. 2174 MU ca. 4 min. Larger dose area to healthy tissue Source: Year End Review, Investor Relations Meeting ASTRO, Oct. 30, 2007 Copyright © Siemens AG 2008. All rights reserved. Page 19 February 28,
Slide 20: Workflow optimization in breast cancer
Workflow optimization in breast cancer Customer challenges Mammography alone misses 6-27% of cancers 1.3m new cases worldwide in 2007 in women over 50 465,000 deaths worldwide MRI more effective than mammography in 30% increase in incidence, but deaths have detecting DCIS decreased/stabili
Slide 21: Screening mammography workflow
Screening mammography workflow Consensus Invitation Acquisition 1st/2nd Reading conference Clarification Central location Case conference DR PACS Mammo/US/ MR/Biopsy/ Pathology SIS SIS SIS SIS Screening location Reader Server QC SIS SIS Mobile unit Screening Information System Server SIS Screening/r
Slide 22: Breast cancer workflow
Breast cancer workflow Abnormal Malignant Calc Diagnostic Mammo W/Mag View + Asymptomatic Screening Abnormal Spot compression Normal Benign patients (75-90%) Mammo Biopsy Diagnostic Exam Mass exam Symptomatic Normal W/Hand-held (palpable) Ultrasound patients MRI (10-25%) Routine Normal follow-up HER
Slide 23: Workflow optimization in hospital quality audits
Workflow optimization in hospital quality audits Customer challenges JCI has accreditation programs in JCAHO/JCI accreditation process includes 60 countries; 30 countries currently 300 standards, 12,000 measurable elements have accredited hospitals One-third of 5,000 accredited US hospitals ar
Slide 24: Live Soarian Workflows automate JCAHO Core Measures
Live Soarian Workflows automate Automate all JCAHO Core Measures 23hr Observation Manager Acute Myocardial Infarction Admission Assessment Completion Admission Manager Advance Directive Adverse Drug Event – INR & Coumadin Allergy Assessment Tracking Assessment Manager Bed Cleaning Manager Central Sc
Slide 25: Workflow innovation in acute myocardial infarction
Workflow innovation in acute myocardial infarction 50% hospital admissions through ED, ED visits have 20% increase over the past decade, waiting times increasing Customer challenges ED backlog of non-critical patients leads to ambulance “How do I diagnose accurately, meet diversions, 25% of MI p
Slide 26: Our large customer base asset: world-class benchmarks
Our large customer base asset: world-class benchmarks Example: door-to-balloon time in ACS Best-practice process elements Use of telemetric 12-lead field-EKG by paramedics Siemens offers concrete Having the ED activate the cath lab while patient auditable performance still en route improvement
Slide 27: Solve ED overcrowding, save money, and offer better care
Solve ED overcrowding, save money, and offer better care ACS is a high cost, low probability, high liability ED evaluation Only 8% of suspect-ACS patients are diagnosed with ACS 12-18 hour average time to release for negative suspect ACS patients 30-40% of catheterizations are negative 1% of
Slide 28: Current standard of care leads to ED overcrowding
Current standard of care leads to ED overcrowding and loss of time in non-STEMI ACS Actual Site ED visits/year Conventional Troponin time = 6 hours 60,000 Others Chest pain Typical CCTA requires beta-blockers 54,000 6,000 STEMI Suspected ACS 120 5,880 13-18 hrs for suspected ACS Myocardial infarctio
Slide 29: Goal: Innovate new standard of care then automate
Goal: Innovate new standard of care then automate unique Siemens technologies could save time at critical steps Actual Site Unique enabling technologies ED visits/year High Sens. Troponin I (6 hours reduced to 30 min) 60,000 ADVIA Centaur TnI-Ultra™ Others Chest pain CCTA - no beta-blockers, up to 1
Slide 30: Future workflow innovation in prostate cancer
Future workflow innovation in prostate cancer Customer challenges 1 in 6 men will be struck In USA alone, a new case every 2.5 minutes A man dies of prostate cancer every 18 minutes … and screening, diagnosis, and treatment are all suboptimal Innovating the Next Generation Standard of Care Mor
Slide 31: Prostate cancer: Three major points of failure
Prostate cancer: Three major points of failure 1. Screening: Sensitive but non-specific 2. Diagnosis: Random biopsies & imprecise staging Blood Test (PSA): Cancer, when detected, is One million men per year in USA alone detected earlier than with DRE but … have unnecessary biopsies False reassurance
Slide 32: Screening specificity improved through new DX tests and imaging
Screening specificity improved through new DX tests and innovative imaging technology Improve low specificity of current PSA testing by using a multi-marker panel for prostate cancer tPSA fPSA cPSA Testosterone Her-2/new 50% reduction of false-positive in combination with REMIND™ results i
Slide 33: New shared molecular markers for more precise staging
New shared molecular markers focus on more precise staging and “watchful waiting” with minimal risk Cell proliferation Hypoxia Hypoxia response Angiogenesis Apoptosis Hypoxia response: Hypoxia relevance: Identified proprietary CA-IX ligands Hypoxic tumor tissue is not In vivo proof of
Slide 34: Healthcare IT the strategic factor in building future businesses
Healthcare IT the strategic factor in building future knowledge based new businesses Healthcare IT unleashed new business opportunities: Expanding the workflow orchestration to guidance on clinical decisions Images REMIND: Reliable Extraction and Meaningful Inference from Non-structured Data Lab
Slide 35: Targeted radiotherapy as an alternative to surgery
Targeted radiotherapy as an alternative to surgery avoids unnecessary complications and cost Copyright © Siemens AG 2008. All rights reserved. Page 35 February 28, 2008 Capital Market Day Siemens Healthcare
Slide 36: Prostate cancer potential savings is huge
Prostate cancer potential savings is huge withProstate simultaneous improvement cancer: Three majorinpoints clinical of outcomes failure 1. Screening: Unnecessary Cost = $2bn biopsies Sensitive but non-specific 2. Diagnosis: Unnecessary treatment and Random biopsies & imprecise staging complications
Slide 37: Workflow and Solutions will accelerate share and margin growth
The Workflow and Solutions will accelerate share and margin growth in sector The installed base of our three principle technologies is the Modalities critical asset Installed Sales cross coverage will Base exploit relationships With each “combined solution” Siemens can “pull” more of our portfol
Slide 38: Being THE workflow company in healthcare by 2010
Being THE workflow company in healthcare by 2010 Discover Automate Innovate Best-in-class hospitals Using existing IT Technical solution infrastructure Clinical Dimensions to critical medical Study in depth Regional levelSiemens IT Eventually problem Cardiology Innovate Next Package an
Slide 39: Focus and deliver
Focus and deliver Driving profitable growth and cash returns Getting the most out of the integrated diagnostics company Achieving best-in-class cost position incl. SG&A reduction Innovating for fast growth and competitiveness + + + Drive organic growth above market growth Deliver target margin Conve
Slide 40: Siemens – Answers for life
SIEMENS Answers for life.
Slide 41: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) Group profit from Operations is reconciled to Income before income taxes of Operations under Reconciliation to financial statements on the table Segment Information. See our Financial Publications at our Investor Relations website under www.si
Slide 42: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) Average calculation for CE*: Year-to-Date Q1 2 Point average: (CE ending Q4 Prior year + CE ending Q1) / 2 Q2 3 Point average: (CE ending Q4 Prior year + CE ending Q1 + CE ending Q2) / 3 Q3 4 Point average: (CE ending Q4 Prior year + CE endin
Slide 43: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Our capital structure target is based on an Adjusted industrial net debt divided by EBITDA (adjusted). For the calculation of Adjusted industrial net debt, we subtract from Net debt (defined as Long-term debt plus Short-term debt and current
Slide 44: Siemens Investor Relations Team
Siemens Investor Relations Team Michael Sen +49-89-636-33780 Florian Flossmann +49-89-636-34095 Sabine Groß +49-89-636-35755 Dr. Martin Meyer +49-89-636-33693 Christof Schwab +49-89-636-32677 Dr. Gerd Venzl +49-89-636-44144 Susanne Wölfinger +49-89-636-30639 Webpage: http://www.siemens.com/investorr