Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Citigroup's 20th Annual Global Industrial Manufacturing Conference (March 2007)

28 slides from Siemens Aktiengesellschaft's conference presentation, Mar 6, 2007

  1. Slide 1: On the Goal Line for Fit4More

    On the Goal Line for Fit4More Citigroup’s 20th Annual Global Industrial Manufacturing Conference March 6, 2007 Joe Kaeser CFO

  2. Slide 2: Disclaimer

    Disclaimer This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning. S

  3. Slide 3: We offer a comprehensive spectrum in electrical engineering

    We offer a comprehensive spectrum in electrical engineering Information and Automation Power Transportation Medical Lighting Communications and Control Siemens Business Automation and Power Generation Transportation Medical Solutions OSRAM Services Drives € 10.1 bn* Systems € 8.2 bn* € 4.6 bn* € 5.2

  4. Slide 4: Fiscal year 06 was characterised by strong growth and portfolio changes

    Fiscal year 06 was characterised by strong growth and portfolio changes +16% 2005 84.7 +17% 2006 76.3 72.8 ƒ Com moved into 65.1 Discontinued Operations ƒ Initiated acquisitions of some € 6.6 billion +25% 3.3 2.7 New Orders Revenue Net Income * FY2006, IFRS, EUR in billion Page 4 March 2007 Investor

  5. Slide 5: We benefit from our global reach

    We benefit from our global reach Regional distribution Growth rates 1996 vs. 2006 2005 – 2006 Siemens Siemens GDP 2x GDP growth = 7.8% Europe 5.8% 33% 8% 50% 2x GDP 66% Europe Siemens Americas 7.0% 20% 36% 26% Asia/Pacific 10.4% Americas 28% 17% Asia/ 15% 25% 11% Pacific MiddleEast, 12.0% Africa, CI

  6. Slide 6: Fit4More established a solid foundation for sustainable success

    Fit4More established a solid foundation for sustainable success Initial situation beginning 2005 April 2005 – Start Fit4More Program Fit4More: Profit & Growth Program Performance Operational People Corporate and Portfolio Excellence Excellence Responsibility • Structural portfolio challenges ƒ Solve

  7. Slide 7: Build a portfolio for sustainable 2x GDP growth

    ... build a portfolio for sustainable 2 x GDP growth MEGATRENDS STRENGTH ƒ x ƒ Urbanization ƒ # 1 or # 2 ƒ Demographic change ƒ Globalization + ƒ Innovation & IPR ƒ Strong Cash Flow SIEMENS‘ FUTURE POWER Energy & Environmental Care Automation & Control, Industrial & Public Infrastructures Healthcare

  8. Slide 8: Clear M&A focus on our Areas of Strength

    Clear M&A focus on our Areas of Strength Acquisitions Market position Application areas VA Tech (7/2005) T&D # 4 Wheelabrator (10/2005) U.S. leader in flue gas desulphurization Energy & Sustec (5/2006) leading in gasification Environmental Care Kühnle, Kopp & Kausch (7/2006) leading in ST<5MW Bonus

  9. Slide 9: Key Figures Q1 FY 2007 – Operational Leverage is kicking in

    Key Figures Q1 FY 2007 – Operational Leverage is kicking in Q1 in millions of euros Δ FY 20071) New orders 24,582 + 4% (continuing operations) Revenue 19,068 + 6% (continuing operations) Group profit from Operations 1,631 +51% (continuing operations) Income from continuing operations 714 +18%2) EPS

  10. Slide 10: The Fit4More program delivers results

    The Fit4More program delivers results FQ 1/2007: - Organic growth > 2x GDP Siemens - Income from Continuing Operations* +87% year-on-year Overall - Highest share price (86,12 € on 01/30/07) since 2001 Operating - All profitable first time since 2000 Groups - All Groups EVA positive (first time in cu

  11. Slide 11: We focus our financial resources on value creating segments

    We focus our financial ressources on value creating segments Profiteers Top Groups CAPEX Target Range below/ CAPEX Target Range high moderate above 100% significant above 100% Capital Efficiency Siemens- Average Substance Keepers CAPEX Target Range significant below 100% CAPEX Target Range above 100

  12. Slide 12: Cash flow generation is a focus matter

    Cash flow generation is a focus matter Volume in € bn 100 bn 12 bn 1,2 Cash Conversion* New Orders* 10 bn 90 bn 8 bn 80 bn Sales* 6 bn 4 bn 70 bn 1,2 1,3 0,8 up 2 bn 0,5 0,1 60 bn 0 bn 2002 2003 2004 2005 2006 2007 379 2,357 -751 -2,525 Net Debt in € million -4,764 -6,877 (Q1 2007) * All figures bas

  13. Slide 13: We take clear actions on cash

    We take clear actions on cash PPE Capex TARGETS AND MEASURES x 100%* 144% Depreciation 122% 115% ƒ Reduce capex/depreciation rate from 106% Target 144% in 2000 to < 115% in 2007 Range 98% 95% ƒ Divisional net working capital programs 2003 2004 2005 2006 2007 ƒ Concentrate on operational excellence N

  14. Slide 14: Our share price reflects improved focus and execution

    Our share price reflects improved focus and execution Siemens Share – Last 2 Years (from 2nd March 05) Siemens Share – FY 2007 (from 1st October 06) Siemens Siemens MSCI World S&P 500 MSCI World S&P 500 01/10/2006 Page 14 March 2007 Investor Roadshow

  15. Slide 15: An IPO of SV offers excellent opportunities

    An IPO of SV offers excellent opportunities Siemens automotive systems – Future trends and basic A success story requirements ƒ EUR 10 billion global business Zero emissions Zero accidents Always on ƒ Average growth of 10% a year (1989 - 2006) ƒ Target margins reached every year since 2003 + ƒ Outst

  16. Slide 16: Outlook for fiscal 2007

    Outlook for fiscal 2007 1. We will reach our Fit4More goals ƒ Growth of 2x global GDP (w/o effects from deconsolidation) ƒ All Groups expected to reach target margins 2. Expect a New Target System including Capital Efficiency Goal for Siemens Page 16 March 2007 Investor Roadshow

  17. Slide 17: Appendix

    Appendix Page 17 March 2007 Investor Roadshow

  18. Slide 18: 20 years of regular dividend increases

    30 years history of continuous dividend payment 2.0 dividend / share (€) 1.6 6 : 5 .9% 977 –200 special dividend R 1 1.2 CAG € 0.67 Infineon IPO 0.8 0.4 0.0 1986 1991 1994 2002 2005 1985 1987 1988 1989 1990 1992 1993 1995 1996 2001 2003 2004 2006 1977 1982 1978 1979 1980 1981 1983 1984 1997 1998 199

  19. Slide 19: All Groups on track

    All Groups on track Profit margin Groups Target margin Status Q1 2007 IFRS SBS 2,0% 5–6% A&D 13,3% 11–13% I&S 4,3% 4–6% SBT 5,9% 7–9% PG 6,2% 10–13% PTD 7,5% 5–7% TS 4,4% 5–7% SV 6,0% 5–6% Med 14,5% 11–13% Osram 10,5% 10–11% SFS* 31,9% 18–22% * Return on equity Page 19 March 2007 Investor Roadshow

  20. Slide 20: A&D invests in process automation and regional setup

    A&D invests in process automation and regional setup Sales in € bn 12.8 Sales in € bn 12.8 +49% +49% Electrical 8.6 8.6 Installation Others for Buildings +115% Americas +214% Process Asia/Pacific Automation Factory Automation Europe 2002 2006 2002 2006 Page 20 March 2007 Investor Roadshow

  21. Slide 21: We are connecting the Digital Factory with the real manufacturing world

    We are connecting the “Digital Factory” with the real manufacturing world Development/ Construction Digital Factory Real Factory UGS + Siemens A&D ƒ Revenue 2005: ~US$ 1.2 bn ƒ Global Market Leader in Industrial ƒ Workforce: >7,000 Automation ƒ Leading Supplier of ƒ Trendsetter in the area of Digita

  22. Slide 22: PG - Driving profitable growth through optimized business mix

    PG - Driving profitable growth through optimized business mix Sales in € bn +4% p.a 10.1 ƒ Service segment growth 30% 7.8 Service 21% ƒ Focus on components - GT/ST - Compressors Components 33% 48% - Oil&Gas solutions - Wind - Air Pollution Control Turnkey (EPC) 46% 22% ƒ World class EPC 2000 2006 Pr

  23. Slide 23: Clean energy offers multiple growth opportunities

    Clean energy offers multiple growth opportunities Wind Geothermal Power Stations ƒ 2.3 MW onshore turbine ƒ Conversion of heat from low-temperature springs ƒ 3.6 MW offshore turbine into electrical energy ƒ + 195% orders ƒ CO2-emission free base load supply ƒ + 350% profit ƒ Additional Service busin

  24. Slide 24: Medical hits profit target for six years in a row

    Medical hits profit target for six years in a row and outpaces market growth Highlights Group profit margin 15.1% 14.8% 12.8% 12.9% ƒ Continuing 9,3 8,3 introduction of in € bn 7,8 7,4 8,1 8,6 trendsetting 7,1 7,6 “firsts”, e. g. New SOMATOM orders* Definition CT Sales* ƒ Further market share gains

  25. Slide 25: Med - World's first integrated diagnostics company

    Med - World’s first integrated diagnostics company ƒ Leading position in attractive In-vitro diagnostics market (IVD) ƒ Rapid growth ƒ Attractive margins ƒ Strong Cash flow ƒ Number 3 position1) in IVD, almost level with number 2 ƒ Strong position in immunodiagnostics and gene based analysis Workflo

  26. Slide 26: Financial calendar FY 07

    Financial calendar FY 07* April 26 April Semiannual financial results FY07 June June 21-22 Capital Market Days 2007 July 26 July Third quarter financial results FY07 – conference call November 8 November Preliminary figures for FY07 * preliminary, updates will be posted at: www.siemens.com/financial

  27. Slide 27: Reconciliations and definitions

    Reconciliations and definitions ”Group profit from Operations” is reconciled to ”Income before income taxes” of Operations under ”Reconciliation to financial statements” on the table ”Segment information”. See ”Financial Publications/Quarterly Reports, FY2007Q1, Financial Statements” at our Investor

  28. Slide 28: Siemens Investor Relations Team

    Siemens Investor Relations Team Marcus Desimoni +49-89-636-32445 Roland Bischofberger +49-89-636-36165 Frank Heffter +49-89-636-34095 Irina Pchelova +49-89-636-33693 Christof Schwab +49-89-636-32677 Susanne Wölfinger +49-89-636-30639 Webpage: http://www.siemens.com Investor Relations e-mail: investo

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