Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Commerzbank German Investment Seminar 2011
25 slides from Siemens Aktiengesellschaft's conference presentation, Jan 10, 2011
Slide 1: Value creation through capital efficient growth
Value creation through capital efficient growth Joe Kaeser, CFO Commerzbank German Investment Seminar January 10, 2011 Copyright © Siemens AG 2011. 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: New strategic direction focused on capital efficient growth
After successful transformation new strategic direction is focused on “capital efficient growth” Basic restructuring and Transformation Sustainable value creation focusing efforts Fit42010 One Siemens Fit4More Outperform Operation 2003 revenue growth 10 Point Program relative to 76.0 74.2 72.5 ~6%
Slide 4: Framework for sustainable value creation: One Siemens
Framework for sustainable value creation One Siemens The integrated technology company Financial target system Outperforming Capital efficiency Capital structure revenue growth Adjusted industrial net ROCE (cont. ops.)1) Growth (nominal) > debt / EBITDA Siemens most relevant competitors 15 – 20% 0.5
Slide 5: Fit4 2010 – Margin expansion and OPEX efficiency; FY2011 Outlook
Fit 4 2010 – Margin expansion and OPEX efficiency P&L P&L Key Figures Structure (cont. operations) 2008 - 2010 Outlook Outlook FYFY2011 2011 €bn FY 2008 Δ FY 2010 Clear growth in order intake Revenue 77.3 - 1.3 76.0 Moderate organic growth COGS 56.3 - 2.0 54.3 Gross profit 21.0 27.2%1) Margin: +130
Slide 6: Our expectations for Q1
Our expectations for Q1 y-o-y1) q-o-q1) Comments on Q1 Industry New orders Short cycle businesses with strong growth momentum and expected profit conversion; expected to normalize in H2 2011 Revenue Good order flow and execution in Mobility Profit3) Long cycle businesses with further signs of
Slide 7: Accelerated optimization of portfolio below Sectors
Accelerated optimization of portfolio below Sectors Examples for recent portfolio activities in Q1 FY2011 Strengthening of core business Sectors Streamlining operations Industry 49% stake in offshore wind Expert opinion on 34 % Areva park installation specialist Energy NP stake soon to be expect
Slide 8: Siemens and Atos Origin will establish a global partnership
Siemens and Atos Origin will establish a global partnership IT-Outsourcing agreement Scope: Managed services and systems integration (infrastructure + applications) Seven year frame agreement (2011 – 2017) with minimum commitment of € 5.5bn Herkules contract (with German armed forces) stays wi
Slide 9: SIS will be transferred debt and cash free
SIS will be transferred debt and cash free Transaction structure for SIS sale to Atos Origin Transfer of SIS on a debt and cash free basis Adequately funded pensions Up to € 250m Integration & training cost for restructuring of 1,750 employees Obligations incl. project risks unidentified at cl
Slide 10: SIS sale will impact profit mainly in Q1 and Q2
SIS sale to Atos Origin will impact profit mainly in Q1 and Q2 and cash flow after closing Expected schedule for SIS sale to Atos Origin Q1 FY 2011 Q2 FY 2011 Q3 FY 2011 Q4 FY 2011 Option Expected Expected Agreement Signing Closing Expected financial implications Medium three digit €m impairments
Slide 11: Siemens will continue to grow the core businesses of the sectors
Siemens will continue to grow the core businesses of the sectors Basic restructuring and Transformation Sustainable value creation focusing efforts Fit42010 One Siemens Fit4More Operation 2003 10 Point Program 74.2 76.0 72.5 Revenue1) 68.1 ~6% ~11% invest @ core in €bn of synergetic ~45% ~44% valu
Slide 12: Balanced strategy addressing emerging and developed economies
A well balanced strategy addressing the emerging as well as developed economies is key Market growth Emerging economies CAGR Focus: Achieve significant growth +3.6% Regional presence Local innovations ⇒ Demand creation ~€43tr ~€52tr Know-how attraction Export opportunities Emerging 32% +6.0%
Slide 13: Innovation strength to shape new markets and outperform competition
Innovation strength to shape new markets and outperform competition Innovative Sources Innovation @ work Number of granted patents Industry TIA Portal – completely integrated +14% engineering software framework Covers entire product lifecycle from product design to production control 57,900 50,700
Slide 14: Vertical IT & Software: Smart by Competence
Vertical IT & Software: “Smart by Competence” Domain know-how drives redistribution of global value chain Energy Industry Healthcare Vertical IT & Software offer attractive growth opportunities by re- aligning the value chain in our core markets Smart Grid PLM IT workflows Energy automatio
Slide 15: Summary – on track with our growth
Summary – on track with our growth Satisfied with Q1 FY2011, mostly on the back of strong 1 short-cycle businesses that drive revenue and profit, Renewables seasonally weak 2 Order intake in line with our growth aspiration Expect short-cycle strength to continue in H1 FY2011, 3 while tough com
Slide 16: Financial calendar
Financial calendar January Jan 10, 2011 Commerzbank Conference (New York) Jan 25, 2011 Annual General Meeting, Q1 Earnings Release and analyst call February Feb 15 - 16, 2011 US Roadshow (New York) Feb 17, 2011 UK Roadshow (London) Feb 18, 2011 German Roadshow (Frankfurt) Page 16 Commerzbank German
Slide 17: Appendix
Appendix Page 17 Commerzbank German Investment Seminar, January 10, 2011 Copyright © Siemens AG 2011. All rights reserved.
Slide 18: Siemens Bank will expand financing opportunities for our Sectors
Siemens Bank will expand financing opportunities for our Sectors Siemens Bank – Key facts Business model and focus Separate legal entity (GmbH) as Support sales growth in three operating 100% subsidiary of Siemens AG sectors by strengthened sales financing Located in Munich Expand loan and g
Slide 19: One Siemens cockpit – our starting position
One Siemens cockpit – our starting position Financial target system Growth Margins compared to industry benchmarks Revenue growth (rolling 4 quarters Q4 FY 2010) EBITDA Margins4) (FY 2010) Industry 12.1% 10-15% Siemens -1% Energy 14.7% 10-15% 0% Competitors1) -1% Healthcare 20.1% 15-20% EBITDA margi
Slide 20: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) To supplement Siemens’ Consolidated Financial Statements presented in accordance with International Financial Reporting Standards, or IFRS, Siemens presents the following supplemental financial measures: New orders and order backlog; Adjus
Slide 21: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) New orders and order backlog (continued) New orders are generally recognized immediately when the relevant contract becomes legally effective and binding. The only exceptions are orders with short overall contract terms. In this case, a separ
Slide 22: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Total Sectors Profit Siemens uses Total Sectors Profit to measure the sum of Profit of the three Sectors Industry, Energy and Healthcare. Profit of the Sectors is earnings before financing interest, certain pension costs and income taxes. Ce
Slide 23: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) ROCE (adjusted) Starting fiscal 2011, Siemens is adjusting the ROCE definition. Net income (before interest), the numerator in the ROCE calculation, is defined as Net income excluding Other interest income (expense), net (excluding SFS), and
Slide 24: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Adjusted EBITDA and adjusted EBIT at the Sector level Siemens also presents adjusted EBITDA and adjusted EBIT on the Sector level. Siemens defines adjusted EBITDA on the Sector level as adjusted EBIT before amortization (which in turn is defin
Slide 25: Reconciliation and Definitions for Non-GAAP Measures (VI)
Reconciliation and Definitions for Non-GAAP Measures (VI) Limitations Associated with Siemens’ Supplemental Financial Measures (continued) The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular: With respect to new orders and order