Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (December 2012)
19 slides from Siemens Aktiengesellschaft's investor day presentation, Dec 11, 2012
Slide 1: Power Transmission - Transform to Win
Power Transmission - Transform to Win Karlheinz Springer CEO Power Transmission Division Capital Market Day Siemens Energy Charlotte, December 11, 2012 © Siemens AG 2012. All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on equity (after tax), or ROE (afte
Slide 3: New Division set-up with sharpened business focus
New Division set-up with sharpened business focus Power Transmission Products Solutions Transmission High Voltage Transformers Solutions Technology leader Total cost of ownership Comprehensive solutions AC circuit breakers Power transformers High-voltage, direct Instrument transformers HVDC transfor
Slide 4: Grid access projects & aggressive competition made a challenging 2012
Grid access projects & aggressive competition made a challenging 2012 Grid access projects German North Sea €570m project charges in FY 12 Four orders for innovative HVDC platforms Underestimated complexity, delivery times, environmental conditions, missing policies Aggressive competitors in transfo
Slide 5: Focus is on return to Profit
Focus is on return to Profit Order Entry Revenue €bn €bn Growth1) Growth1) +5% +8% -4% +4% +2% -21% 6.8 7.3 6.2 6.1 6.3 6.6 6.3 5.8 book- to-bill 1.02 1.10 1.15 0.88 FY 2009 FY 2010 FY 2011 FY 2012 FY 2009 FY 2010 FY 2011 FY 2012 Profit Free Cash Flow and Cash Conversion Rate €m Underlying Margin CC
Slide 6: Clear path to growth and profits
Clear path to growth and profits 1. Stronger with offshore experience 2015 Cost savings 2. Significant cost reduction of 30% Transform Profitability 3. Competitiveness through innovation to Win at 8% 4. Global presence for customer value Grow faster than 5. Profitable growth the market © Siemens AG
Slide 7: Fast start – accelerated recovery since May 2012
Fast start – accelerated recovery since May 2012 North Sea grid access projects stabilized Project and risk management strengthened New management in place New organizational structure: 1 solution, 2 product business units Global 30% cost reduction target implemented -30% Headcount reduction initiat
Slide 8: Headcount reduction by 8% and shift to low-cost countries
Headcount reduction by 8% and shift to low-cost countries -8% closing Grenoble (factory) Berlin Nuremberg France Germany Germany 2011 2015 Advanced economies Emerging economies Shanghai Aurangabad Guanajuato China India Mexico © Siemens AG 2012. All rights reserved. Page 8 December 11, 2012 Capital
Slide 9: Ambitious target – 30% total cost reduction
Ambitious target – 30% total cost reduction €1.8bn 30 % cost reduction Effect of midterm measures Shift to low-cost countries Site closures 0.4 2015 Standardization / Continued Modularization 0.4 Energy 2014 re-structuring 2014 Feeder & focus plants Lean factories & processes Immediate action Staff
Slide 10: €1.1bn cost reduction contribution to Energy 2014
ples am Ex €1.1bn cost reduction contribution to "Energy 2014" Standardized modules of SVC PLUS Global lean factory initiative 4 5 6 Less engineering effort . . . Less idle time Reduced material cost Higher delivery reliability 3 >€100m cost . 2 1 . >€30m cost reduction . reduction Footprint and rig
Slide 11: Competitive advantage for our customers through innovation
Competitive advantage for our customers through innovation FITformer REG 1st European onshore HVDC Ideal for intermittent 2,000 MW HVDC renewables infeed Low environmental De-central and impact municipal grids Most advanced converter technology Continuous increase in R&D investment 8 global lead cen
Slide 12: Market trends play into our hands
Market trends play into our hands Strong DC grid growth ~4% €42bn Country interconnections €37bn Offshore wind farms DC DC >20% New lines in Germany Extension in China, India AC ~2% AC AC grid opportunities Grid modernization in US and Europe, esp. Russia Grid extension in emerging markets 2012 2015
Slide 13: Local strength is our competitive edge
Local strength is our competitive edge 2 2 28 4 32 3 3 2 2 8 2 5 2 2 4 2 Focus markets Lead R&D centers Centers of competence Manufacturing facilities Service centers © Siemens AG 2012. All rights reserved. Page 13 December 11, 2012 Capital Market Day Energy CEO Power Transmission Division
Slide 14: North America – Grid modernization and new builds
North America – Grid modernization and new builds Grid modernization Keep top position through HVDC Full portfolio manufactured in 4 2 28 32 NAFTA (Mexico, Canada, US) 2 3 3 2 Further capacity increase 2 Local turnkey expertise 8 2 5 2 2 More power for New York: 4 2 HVDC back-to-back link to boost M
Slide 15: Northern and Central Europe – Capitalize on transformation of the energy system
Northern and Central Europe – Capitalize on transformation of the energy system SylWin Denmark BorWin HelWin DolWin 2 28 4 2 32 Germany 3 3 2 2 Netherlands Capitalize on Energiewende 8 Master offshore grid 2 5 2 2 Offshore AC engineering center in Manchester 4 Offshore platform engineering 2 center
Slide 16: Russia – Strong entry in Russian market
Russia – Strong entry in Russian market National brand Grid modernization Voronezh: local factory ramp-up for 2 28 2 4 32 HV products and transformers 3 3 2 Partnership for large projects in 2 8 place 5 2 2 2 Cooperation with 4 2 Federal Grid for mass producing high- voltage equipment RIA Novosti Fo
Slide 17: Asia – Technology leader in HVDC
Asia – Technology leader in HVDC Strengthen competitiveness Gain top position through UHV Full portfolio manufactured in each 2 2 28 country 4 32 3 3 Further capacity increase 2 2 8 Local R&D centers to develop 5 2 products for local markets2 2 4 2 India’s largest private HVDC transmission system co
Slide 18: Power Transmission – best prepared to win the future
Power Transmission – best prepared to win the future 1 Grid access projects stabilized 2 30% cost reduction by 2015 3 Competitive advantages through innovation 4 Global footprint & expertise for profitable growth © Siemens AG 2012. All rights reserved. Page 18 December 11, 2012 Capital Market Day En
Slide 19: Reconciliation and Definitions for Non-GAAP Measures
Reconciliation and Definitions for Non-GAAP Measures This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on eq