Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Citigroup 2008 Global Industrial Manufacturing Conference

16 slides from Siemens Aktiengesellschaft's conference presentation, Mar 5, 2008

  1. Slide 1: Update on TAP program

    Update on TAP program Citigroup 2008 Global Industrial Manufacturing Conference Joe Kaeser, CFO New York, March 5, 2008 Copyright © Siemens AG 2008. All rights reserved.

  2. 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,'

  3. Slide 3: Key Figures Q1 2008: Year-on-year improvement at all levels

    Key Figures Q1 2008: Year-on-year improvement at all levels % Change Q1 2007 Q1 2008 Nominal Comparable1) New orders (Cont. Op.) 22,244 m 24,242 m 9% 8% Sales (Cont. Op.) 16,729 m 18,400 m 10% 8% Group profit from Operations 1,485 m 1,719 m 16% Income from Cont. Op. 621 m 1,078 m 74% Net income (''a

  4. Slide 4: Organizational structure started on time – Jan 1st, 2008

    Organizational structure started on time – Jan 1st, 2008 Supervisory Board Managing Board Sector CEO Sector CEO Sector CEO Industry ~€40 bn Energy ~€20 bn Healthcare1) ~€11 bn Industry Automation Fossil Power Generation Imaging & IT Drive Technologies Renewable Energy Workflow & Solutions Building T

  5. Slide 5: Bringing down the break-even point: Improvement of CAPEX ratios continued

    Bringing down the break-even point: Improvement of CAPEX ratios continued Sum of Operating Groups Investment quota (PPE) (Operating Business) Investment quota (PPE&Intangibles) Investment x 100% Organic growth Depr./Amort. 144% 131% 122% 115% 115% 106% 127% 109% Target 110% Range 100% 98% 93% 95% 3%

  6. Slide 6: Execution of Share Buyback started in January 2008

    Execution of Share Buyback started in January 2008 Shareexecution …determines buyback program Best execution policy for announced Nov 8, 2007 our shareholders ƒ Completion of Fit 4 2010 target ƒ Start with €2 billion on January system 28, 2008 ƒ Optimization of capital structure ƒ Execution accordin

  7. Slide 7: Enterprise Business (SEN) needs significant restructuring

    Enterprise Business (SEN) needs significant restructuring Siemens Enterprise Communications Category 1: Outsourcing Employees Sale & third-party solutions 17.600 3.000 worldwide 1.800 ƒ Focus on future core competencies 1.200 3.800 ƒ Optimize “go to market” in the segment of 1.800 small and medium s

  8. Slide 8: Performance of Large Projects at PG is unsatisfactory

    Performance of Large Projects at PG is unsatisfactory ''One Offs'' in project business Backlog acquired in billion € in 4 out of 5 quarters (million €) 1) 18.0 0 12.6 10.9 70% 9.3 20% 30% -100 20% 5.9 80% 80% 70% FY 2007 30% 95% 5% -200 Q1 Q2 Q3 Q4 Q1 2008 2004 2005 2006 2007 FQ1 2008 1) Negative on

  9. Slide 9: Streamlining continues as announced

    Streamlining continues as announced Segment information (continuing operations) for fiscal year ended September 30, 2007 Net capital Other Operations (OOP) Operations Group Profit employed (€ million) FY 2007 9/30/07 Revenue 2007: € 2.9 billion Operations Groups 6.914 23,690 ƒ ~187 businesses identi

  10. Slide 10: We will cut SG&A cost by 10-20% until 2010 in absolute terms

    We will cut SG&A cost by 10-20% until 2010 in absolute terms SG&A cost reduction Key activities Reduction by 1 Streamlining organization with potential to reduce SG&A cost 11.9 bn 12.1 bn 10 to 20 % 2 Optimizing G&A cost across Corporate functions, Sectors and Regions SG&A1) (€) Increase efficiency

  11. Slide 11: Outlook 2008

    Outlook 2008 ƒ Macroeconomics ƒ Siemens Page 11 Citigroup Conference, New York, March 5, 2008 Copyright © Siemens AG 2008. All rights reserved.

  12. Slide 12: Some sources expect only moderate slowdown in 2008 and recovery thereafter

    Some sources expect only moderate slowdown in 2008 and recovery thereafter Real GDP in trillion USD 3.6% 3.4% 3.2% 60.2 58.0 56.1 54.3 +2.4% 16.0 +2.3% 15.6 Europe +2.2% 15.3 15.0 w/o Germany +1.7% 3.5 +2.0% 3.4 +1.5% 3.4 Germany 3.3 +3.9% 5.7 +3.9% 5.5 Americas +3.9% 5.2 5.0 w/o USA +3.0% 14.8 14.0

  13. Slide 13: Strong book-to-bill continues … for now!

    Strong book-to-bill continues … for now! 1.75 1.50 Asia / Pacific Europe w/o Germany Siemens worldwide 1.25 Americas Germany 1.00 Africa / NME / CIS 0.75 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Germany Europe w/o Germany Americas Asia / Pacific Africa / NME /CIS Siemens worldwide Page 13 Citigroup C

  14. Slide 14: Outlook: slowdown not visible yet in our order book – strategic execution remains key

    Outlook: slowdown not visible yet in our order book – strategic execution remains key ƒ Cycle continues to be up, likely in waves Energy Execution remains key ƒ Strong global demand especially in Renewables ƒ Earnings conversion from organic growth ƒ Does perception become reality and when? Industry

  15. Slide 15: Continue stringent Execution against Plan

    Continue stringent Execution against Plan Reporting dates Milestones (deliverables) November 2007 ƒ New organization approved Supervisory Board ƒ Managing Board incl. Sector CEO approved ƒ Sector CFO named December 2007 ƒ Division CEO and CFO named ƒ New target margins for Energy and Industry Sector

  16. Slide 16: Questions & Answers

    Questions & Answers Page 16 Citigroup Conference, New York, March 5, 2008 Copyright © Siemens AG 2008. All rights reserved.

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