Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (February 2012)
26 slides from Siemens Aktiengesellschaft's investor day presentation, Feb 14, 2012
Slide 1: Diagnostics – Aiming for higher performance
Diagnostics – Aiming for higher performance Michael Reitermann CEO Healthcare Diagnostics Capital Market Day Siemens Healthcare London, February 14, 2012 © Siemens AG 2012. 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: Siemens Diagnostics: Focused on driving value and generating growth
Siemens Diagnostics: Focused on driving value and generating growth Recent performance below expectations Entire organization understands challenges Building blocks in place Action plan well advanced Timeline for margin and sales progress is clear © Siemens AG 2012. All rights reserved. Pa
Slide 4: We have a strong base, but must deliver better performance
We have a strong base, but must deliver better performance Revenue Diagnostics: Broad-based, global player €bn 3,49 3,67 3,67 3,19 €3.7bn in sales in FY2011 2,5% 1,5% 3,0% 0,2% Serving approximately 30,000 2008 2009 2010 2011 customers in >170 countries Growth1) Reaching >700 million patients p.a. U
Slide 5: Strong presence in major segments; emerging markets a bright spot
Strong presence in major segments; emerging markets a bright spot #1 or #2 player in major segments Growth in emerging vs. developed markets Emerging markets: Siemens Diagnostics #1 Immunoassay 1) above market growth Relative market size #3 Chemistry 2) #2 POC 3) #4 Hematology #1 Hemostasis #4 Molec
Slide 6: Diagnostics market: Consistent, long-term growth
Diagnostics market: Consistent, long-term growth Growth drivers Market size (€bn) Mid-term Growing and aging Today CAGR population Chemistry / ~13 3-4% Immunoassay Economic growth in emerging Point-of-Care 1) ~3 ~6% markets Hematology / ~2 3-4% Hemostasis Increasing value Molecular of diagnost
Slide 7: Causes for underperformance are clear
Causes for underperformance are clear Product gaps in POC and Molecular Revenue Disruptions from production transfer / premature launch (FY 2008 2011) R&D: Harvest / maintenance mode Sales force distraction Flat revenue Profit (FY 2010 Price erosion / cost increases not compensated 2
Slide 8: Actions well advanced to drive performance
Actions well advanced to drive performance FY 2011 FY 2012-13 Mid- to long-term What we've done What we're doing now Where we are headed Rebuild. Execute. Deliver! Reinforce customer Driving margin Deliver healthy confidence improvement growth Organization moving Setting the Regain marke
Slide 9: We have fixed the basics, retooled our organization, and increased our innovation power
We have fixed the basics, retooled our organization, and increased our innovation power What we’ve done Reinforce customer Fixed production transfer / launch disruptions confidence Focused on customer satisfaction drivers Organization Streamlined into 4 Business Units moving in one Leveragin
Slide 10: Disruption challenges solved and increased customer focus
Disruption challenges solved and increased customer focus # SKUs in backorder / allocation -98% Production 123 transfer 83 24 29 18 12 5 3 impact July, FY10 FY11 FY11 FY11 FY11 FY12 Dec, 2010 Q4 Q1 Q2 Q3 Q4 Q1 2011 Service cost / Unscheduled instrument p.a. service visits Launch -53% -57% related co
Slide 11: Faster, leaner, more accountable global organization
Faster, leaner, more accountable global organization CAI HHS POC MM Sep. 2010: 6 separate Diagnostics regions Chemistry / Hematology, Point of Care Molecular Immunoassay Hemostasis, and Automation, Specialties Microscan Diagnostics IT Chemistry Hematology Blood Gas Microbiology Immuno- H
Slide 12: R&D: Shift to high growth projects
R&D: Shift to high growth projects 100% Transfers, maintenance & others 1) Increased focus on new New innovation innovations 69% R&D 62% investment (products new 52% 53% to Siemens or the industry) FY FY FY FY 2010 2011 2012 2013 1) Upgrading product, fixing quality issues, and other special topics;
Slide 13: Top priority: Margin recovery and revenue driving programs
Top priority: Margin recovery and revenue driving programs What we are doing now Streamline workforce and management layers Driving margin Increase profit contribution from procurement improvement Optimize global SCM footprint Expand emerging market presence Maximize new product launch imp
Slide 14: Reducing headcount and number of sites to drive immediate margin improvement
Reducing headcount and number of sites to drive immediate margin improvement Headcount reductions Change from June, 2011 (net reductions, cum.) Reduce ~5% 6-8% workforce by 6-8% Q3 FY11 Q4 FY12 Q4 FY13 Fewer manufacturing and logistics locations -20% 15 Reduce 12 overall footprint FY2011 FY2014 © Si
Slide 15: Driving revenue: Spotlight on China
Driving revenue: Spotlight on China "Partner of Choice" status from #1 university hospital POC R&D and Customer Training Center Very comprehensive distributor network More than 20 automation systems installed Grew employees 38% in FY11, with only 7% attrition Launched focus program to in
Slide 16: Driving revenue: New hardware / software innovations and assay launches
Driving revenue: New hardware / software innovations and assay launches Planned product launches in next 18 months ∑ of planned1) assay launches New Lab Process Manager Emerging market Clinical Chemistry Liver Fibrosis (OUS) 1) Next Gen. Automation Solution >20 BNP on additional CAI platform Robotic
Slide 17: Driving revenue: Lengthening our lead in the automation space
Driving revenue: Lengthening our lead in the automation space Automation product line Next generation ADVIA automation New automation solution High throughput, peak performance Mid to mega volume Comprehensive pre / post analytics StreamLAB automation Smarter routing and workflow Full auto
Slide 18: Driving revenue: Simpler, more customer-centric system offerings
Driving revenue: Simpler, more customer-centric system offerings Strategy: CAI platform variations Focus on customer-centric solutions 19 17 13 10 and strengths in automation Reduce portfolio complexity FY2008 FY2010 FY2012 FY2014 Example: Automation enabled solution ADVIA ADVIA Impact: Centaur
Slide 19: Driving revenue: Exciting start to growing assay partnerships
Driving revenue: Exciting start to growing assay partnerships Partner New market ViiV Healthcare Founded in 2009 jointly by Pfizer Companion diagnostics and GSK, focused on HIV for HIV treatment drug Clinical agreement signed Tocagen A biotech pharma, with novel Companion diagnostics retro
Slide 20: Diagnostics: Aiming for higher performance
Diagnostics: Aiming for higher performance FY 2011 FY 2012-13 Mid- to long-term What we’ve done What we’re doing Where we are headed Rebuild. Execute. Deliver! Products and organization re-energized Solid steps taken to immediately drive margin and innovation pace Setting the pathway for stron
Slide 21: 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; Adjusted
Slide 22: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) New orders and order backlog - continued Order backlog represents an indicator for the future revenues of our Company resulting from already recognized new orders. Order backlog is calculated by adding the new orders of the current fiscal yea
Slide 23: 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 four Sectors Energy, Healthcare, Industry and Infrastructure & Cities. Profit of the Sectors is earnings before financing interest, certain pension co
Slide 24: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) ROCE (adjusted) – continued ROCE (adjusted) at the Siemens group level on a continuing and discontinued operations basis Siemens also presents group ROCE (adjusted) on a continuing and discontinued operations basis. For this purpose, the nume
Slide 25: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Adjusted EBITDA, adjusted EBIT and adjusted EBITDA margins on a continuing operations basis – continued Adjusted EBITDA margins at the Sector level Siemens defines adjusted EBITDA margins at the Sector level as the ratio of adjusted EBITDA to
Slide 26: Reconciliation and Definitions for Non-GAAP Measures (VI)
Reconciliation and Definitions for Non-GAAP Measures (VI) Limitations on the usefulness of Siemens’ supplemental financial measures The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular: With respect to new orders and order backlog: