Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (July 2008)
19 slides from Siemens Aktiengesellschaft's investor day presentation, Jul 1, 2008
Slide 1: Siemens Energy: Energy Service Division
Siemens Energy: Energy Service Division Randy Zwirn, CEO Energy Service Division Capital Market Days “Energy” Munich, July 1, 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: Energy Service Division – Portfolio
Energy Service Division – Portfolio Portfolio References Services for Servicing more than 680 GW of the Oil & Gas Siemens fleet plus licensee and non- Industrial applications Siemens units Power generation applications 11,780 employees (fiscal 2007) Full range of service offerings incl
Slide 4: Well positioned OEM "franchise"
Well positioned OEM "franchise" 20% global installed fossil fleet Over one-third of U.S. generation fleet Over 40,000 industrial units serving industrial and Oil & Gas segments Scale from three segments (Utility, Oil & Gas, Industrial) with different business cycles Page 4 July 2008 Capital
Slide 5: Continue to grow at 2xGDP
Continue to grow at 2xGDP Fleet growth Growing backlog (€10 bn) of long-term service agreements (LTP/O&M) Life extension of coal / nuclear fleet Leveraging R&D to get more €/MW from installed base Positioning portfolio to more "long cycle" business with high earnings visibility Page 5 July
Slide 6: Leveraging best practices across new division
Leveraging best practices across new division Synergies from new service structure SG&A efficiency 1% annual profit improvement on entire service sales mix Sustainable core for the Energy Sector Page 6 July 2008 Capital Market Days “Energy” Copyright © Siemens AG 2008. All rights reserved.
Slide 7: Relentless focus on service business
Relentless focus on service business Service Local response Field execution Human performance Customer intimacy Compressed outage schedule Different business drivers between new unit and service – focus on maximizing life-cycle returns Page 7 July 2008 Capital Market Days “Energy” Copyrigh
Slide 8: Investment in existing assets has never been more valuable
Investment in existing assets has never been more valuable Concerns over climate change constraining conventional 1 coal combustion outside of the developing world Resurging interest in nuclear globally . . . 2 . . . but long lead times, planning hurdles, and waste issues Higher appetite for natural
Slide 9: High performing portfolio – regional diversity
High performing portfolio – regional diversity Service Sales by Market Service Sales by Product Compressors 5% Asia 12% Environmental 8% Africa Middle East 17% Industrial Steam 11% Fossil Steam 27% Europe 31% O&G GT 12% ~50% Americas 40% Fossil GT 37% Approximately 50% of business from GT service …
Slide 10: Growing core service
Growing core service GW 290 Advanced GT Fleet Installed Base 110 188 393 units in operation 93 680 GW global fleet Backlog of 90 units 20% of global fleet (fossil and industrial) 70% with long-term Industrial ST Nuclear GT ST/GT ST service agreements + ST Upgrades Modern GT Fleet Potenti
Slide 11: Global forecast – Siemens gas turbine fleet growth
Global forecast – Siemens gas turbine fleet growth Large Gas Turbines Medium Gas Turbines Small Gas Turbines Operating Base Growth 148% 130% 109% 100% 2004 2007 2010 2012 Gas turbines likely to be technology of choice for utilities and oil & gas customers Page 11 July 2008 Capital Market Days “Energ
Slide 12: Gear business toward high value services
Gear business toward high value services Expanded Performance Transactional Scope / Risk Driven O&M 15 O&M sites (Operations and Maintenance) €2.1 bn backlog Increasing Scope Expanded Scope LTP (Gen, Steam, BoP) € per Fired Hour & 388 LTP sites Term Warranty €7.6 bn backlog LTP (Long-term Program) O
Slide 13: Life extension and upgrade is increasingly attractive
Life extension and upgrade is increasingly attractive # of shipped steam turbine rotors Global Market Share 231 Siemens Units 150 112 Orders 80% Target 119 opportunities 03 - 08 08 -12 Global Hit Rate U.S. Nuclear Utility Non-Siemens Units Upgrade (not yet announced) 3 sites – 6 units total 30%
Slide 14: Extending industrial portfolio – benefits from increased Oil & Gas capital expenditures
Extending industrial portfolio – benefits from increased Oil & Gas capital expenditures Industrial Base Demag Delaval OEM Fleet Acquisition KK&K + + + Industrial Oil & Gas Oil & Gas Small steam applications Compressors ST & Small GT turbines ST < 100MW Fleet: (< 70MW) Compressors
Slide 15: Best in class technology to increase customer competitiveness
Best in class technology to increase customer competitiveness Industry First: Generator core replace- Diagnostics ment using new "donuts" 50% reduction in outage time: Moving to Condition Based Main- 50 days instead of 100 days tenance (CBM) Customer benefit: €5-35 m 125 plant sides monitore
Slide 16: Siemens Energy Service sustainable core for the Energy Sector
Siemens Energy Service sustainable core for the Energy Sector Revenue Growth: 2 x GDP Well positioned OEM "franchise" Profit Margin Range: Continue to grow at 2xGDP +1%-point per year Leveraging best practices across new division FY 2006 2007 2008 2009 2010 Page 16 July 2008 Capital Market Days “En
Slide 17: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) Profit Total Sectors is defined as the sum of the profits of each of the three new Sectors that Siemens uses for purposes of reporting IFRS segment results commencing with the third quarter of fiscal 2007. For a reconciliation of Profit Total
Slide 18: 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 19: Siemens Investor Relations Team
Siemens Investor Relations Team Michael Sen +49-89-636-33780 Gerald Brady +1-408-492-4439 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 Webpage: http://www.siemens.com/investorrelatio