Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2007)
28 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 21, 2007
Slide 1: Automation & Drives – Capital Market Days 2007
Automation & Drives – Helmut Gierse, Group President Capital Market Days 2007 June 21-22, Berlin
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words as “expects”, ”looks forward to”, “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will” or wor
Slide 3: Sustainable business success for Automation and Drives
Sustainable business success for Automation and Drives Profit & Growth (€ in million) (€ in million) FY 2006 H1 07 (unaudited) 13.7% 12.2% 12.3% 12.2% New orders 14,108 8,173 9.6% Sales 12,848 7,101 Group profit 1,558 976 12,848 Free cash flow 1,259 528 9,844 8,375 8,829 7,107 Employees 70,528 2003
Slide 4: Sustained Value Enhancement
Sustained Value Enhancement Profitability: Profit nominal and in % of sales Economic value added - EVA Free cash provided by operating activities Market Portfolio: Value Market Share: Industries Sales volume Products Regions Page 4 Capital Market Days 2007
Slide 5: A&D is a leading global player in all relevant markets
A&D is a leading global player in all relevant markets Electrical Equipment Factory Automation Process Automation for Buildings #1 #3 #2 Profit engine Growth engine Balanced business Revenue Growth* : +9% +14% +5% Market Size : € 52bn € 45bn € 24bn Market ~ +4% ~ +7% ~ +5% Growth* : * Average annual
Slide 6: Vertical strategy: Clearly focused Competence Centers
Vertical strategy: Clearly focused Competence Centers closely linked to industry trends Focus on Industries ... Process Hybrid Discrete Food & Beverage Food & Bev Semiconductor Pharma Shipbuilding Automotive Aerospace Chemicals Oil & Gas Cement Pharma Airports Water Glass Totally Integrated Automati
Slide 7: Focus Automotive: Increasing productivity all over
Focus Automotive: Increasing productivity all over A&D sales increase despite of reduced General conditions investments by carmakers High cost pressure A&D products and systems in automotive, Concentration of brands among few vendors sales volume Worldwide manufacturing strategies on platform
Slide 8: Focused R&D secures our future
Focused R&D secures our future Typical innovation cycles 0-3 years 4-6 years 7-10 years Software Electromechanics Mechanical Components Electronics Bus Systems New Materials Engineering tools Controllers Power Distributed Special Standard Human Machine Sensors Converters Control Motors M
Slide 9: Exclusively Siemens: Savings by Safety Integrated
Exclusively Siemens: Savings by Safety Integrated About 150 manufacturing cells in the body shop of an Control cabinet before automobile manufacturer – Previously separate safety and control functions in each cell Functions pooled with Profisafe Lower costs resulting from reduced effort in eng
Slide 10: Exclusively Siemens: Integrated motion control technology
Exclusively Siemens: Integrated motion control technology Pendulum machining center, Deutz, Germany Customer requirements Optimized automation architecture for crankshaft production Simplification of configuration, wiring and software structure Improvement of service and diagnostic functions o
Slide 11: Exclusively Siemens: Energy optimized drive systems
Exclusively Siemens: Energy optimized drive systems Energy savings in euros/kWh Energy cost savings in euros/year highly efficient motors 0.10 200 improved 0.08 efficiency motors 150 0.05 standard 100 motors 50 0 Operating Hours 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 Within 20 years, energ
Slide 12: Platform based productivity enhancement by TIA / TIP
Platform based productivity enhancement by TIA / TIP >=110kV ERP TIA TIP Enterprise Resource Planning MES Communication Medium voltage Manufacturing Execution Systems Automation Low voltage A&D PTD SBT More consistency More customer benefit Data management Reduced costs Engineering Time adva
Slide 13: Outperforming the markets: A&D sales growth by region 2002–2006
Outperforming the markets: A&D sales growth by region 2002 – 2006 Figures in € bn World Market 121 98 2002 2006 8.04 5.73 2.06 2.40 2.07 A&D Sales 0.66 0.18 0.35 2002 │ 2006 Americas Europe Asia/ Pacific CIS, NME, Africa A&D Sales Growth p.a. 3.9% 8.8% 33% 18% 2002-2006 ~ Market Growth p.a. 1.6% 4.0
Slide 14: A&D confirms market leadership in BRIC
A&D confirms market leadership in BRIC with aggressive sales growth Brasil #2 Russia #2 9 sales offices, 230 distributors 7 sales offices 3 factories 73 system integrators OEM initiative with 724 machine builders 16 distributors 1,700 employees 180 employees sales growth 23%* sales g
Slide 15: UGS: Game changer in digital engineering
UGS: Game changer in digital engineering Combined A&D and UGS portfolio along the complete life cycle of products for enhanced customer efficiency UGS Functional automation engineering Digital Factory PLC programming Factory CAD Automation Idea design TIA design PLM Product Totally Integrated Automa
Slide 16: PLM + Automation = shorter time-to-market
PLM + Automation = shorter time-to-market Manufacturing Development Specification Final Testing Requirement Engineering Packaging ... … … … … … UGS Time to market (weeks, months, years …) Page 16 Capital Market Days 2007
Slide 17: Sustained Value Enhancement
Sustained Value Enhancement Profitability: Profit nominal and in % of sales Economic value added - EVA Free cash provided by operating activities Market Portfolio: Value Market Share: Industries Sales volume Products Regions Page 17 Capital Market Days 2007
Slide 18: Best-in-class portfolio drives continuous increase of market share
Best-in-class portfolio drives continuous increase of market share through the cycle New Orders and Business Cycle A&D market share worldwide +11.0% -3.7% -2.9% +5.9% +13.5% +38.4% +13.5% 11.0% 14.108 9.7% 10.190 9.3% 9.065 8.980 9.0% 8.728 8.476 8.173 8.8% 8.6% 8.1% 7.7% 2001 2002 2003 2004 2005 20
Slide 19: Sustained Value Enhancement: Profitability
Sustained Value Enhancement Profitability: Profit nominal and in % of sales Economic value added - EVA Free cash provided by operating activities Market Portfolio: Value Market Share: Industries Sales volume Products Regions Page 19 Capital Market Days 2007
Slide 20: Understanding customer needs
Understanding customer needs M1 / M2 Main markets for advanced products and technologies High technology and innovation key selling arguments Customers: Bayer, BMW… Î Total lifecycle cost M3 Main market for low automation, low-price products Robustness and usability main selling arguments
Slide 21: Leveraging the advantages of global sourcing
Leveraging the advantages of global sourcing A&D operates 79 manufacturing sites world-wide* America Europe Asia 24 42 13 LCC HCC 40% 60% USA Germany China 15 21 6 ~ 45.000 employees in production Consolidation of production facilities Transfer of manufacturing capacities from USA to Mexico Gr
Slide 22: Cash is king – excellent track record of turning profit into cash
Cash is king – excellent track record of turning profit into cash Free Cash Flow* (€ in m) Historically, excellent track record in Cash Conversion Rate** cash generation and tight control of 1,243 capital employed 1,190 1,103 1,100 Asset management is a focus topic 1,006 Clear responsibilities
Slide 23: Our profitability is trending upwards
Our profitability is trending upwards Profit (in million EUR) Scale effects are coming through Profit margin 13.7% Reduced cyclicality drives a margin 12.2% 12.3% 12.2% target of 12-15% through the cycle 11.0% Present in all economic regions 1,572 9.6% 1,253 8.4% Present in markets for facto
Slide 24: Priorities to achieve the goals
People Portfolio Excellence Develop talent globally Build on our strengths in Strengthen leadership Energy & Environmental development People Care Attain high performance Portfolio Automation & Control, Excellence culture Industrial & Public Strengthen expert careers Infrastructures Pe
Slide 25: Sustained Value Enhancement - A&D targets
Sustained Value Enhancement - A&D targets Grow sales by 2x market growth, based on organic and exogenous activities Group profit margin: 12% - 15% Further expand all #1 positioned businesses Develop #2 positioned business units into market leaders Focus on acquisitions in sensors, electrical equipme
Slide 26: Glossary
Glossary A&C Automation and Control OEM Original Equipment Manufacturer A&D Automation and Drives MES Manufacturing Execution System CAE Computer Aided Engineering PCS Process Control System CAD Computer Aided Design PLC Programmable Logic Controller CAM Computer Aided Manufacturing PLM Product Life
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, FY07 Q2, Financial Statements” at our Investor
Slide 28: Siemens Investor Relations Team
Siemens Investor Relations Team Marcus Desimoni +49-89-636-32445 Roland Bischofberger +49-89-636-36165 Florian Flossmann +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/investorrelations e-mail: inve