Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (December 2012)
18 slides from Siemens Aktiengesellschaft's investor day presentation, Dec 11, 2012
Slide 1: Siemens Energy – The company of choice
Siemens Energy – The company of choice Driving productivity is the key priority Ralf Guntermann CFO Siemens Energy Sector Michael Becker CFO Fossil Power Generation 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: Siemens Energy: From the Financial Perspective
Siemens Energy: From the Financial Perspective High performing, resilient business year after year Focused on improving performance still further: Margin gains as the key driver Cost reduction – to ensure our long-term competitive lead Delivering world class performance: Industry leading margins, re
Slide 4: A growing and profitable order backlog – Discipline in order intake and execution
A growing and profitable order backlog – Discipline in order intake and execution Order Backlog €bn +150bps Quality ++ 55.3 ~21 + Installed fleet large GT: 41.9 from ~1,000 units in 2008 ~40% to ~1,200 units in 2012 ~34 Service ~1/3 Increased product channel Products Solutions Selective approach FY
Slide 5: Stable order entry in 3 regions – Higher volatility in Europe
Stable order entry in 3 regions – Higher volatility in Europe Orders Key developments €bn Growth1) +15% -18% Consistent performance – -3% 31.4 averaging last 4 years >€28bn 27.5 27.3 21% 26.9 FY 2012 robust order entry in three out of four regions 22% Europe after strong FY 2011 26% weaker in FY 201
Slide 6: Broad based revenue growth driven by consistent backlog conversion
Broad based revenue growth driven by consistent backlog conversion Revenue Key developments €bn +7% 4 years average at solid Growth1) +9% 27.5 book-to-bill of ~1.2 -3% 24.6 Backlog-conversion plus 22.9 22.7 book-to-bill drives positive revenue development Contribution from all Divisions Strongest in
Slide 7: Strong underlying profit-contribution in a competitive environment
Strong underlying profit-contribution in a competitive environment Profit Key developments €bn Underlying Margin 14.5% Oil & Gas with solid performance 13.6% 11.9% 11.4% Wind outperformed competitors 4.2 Transmission with need for Areva improvements 11.9% 13.4% 17.2% 7.8% 3.0 Fossil: outstanding per
Slide 8: SG&A and R&D are supporting our strategy
SG&A and R&D are supporting our strategy SG&A Key developments in % of revenue Industry leading SG&A level 7.7% 7.3% 7.3% 6.6% Volatility due to shift in business mix €bn FY 2012 impacted by M&A integration 1.8 2.1 (e.g. OOO Siemens Gas Turbine 1.5 1.6 Technologies, NEM and Tronic and Matre Instrume
Slide 9: Tight working capital management drives strong cash generation
Tight working capital management drives strong cash generation Improved inventory turns Balanced development Turns 4.6 5.0 Turns 6.6 6.8 -9.4 -9.4 5.5 4.1 2.9 €bn 5.0 €bn 3.5 2.4 FY 2009 FY 2012 FY 2009 FY 2012 FY 2009 FY 2012 Inventories Receivables Payables Pre-payment conditions Consistently nega
Slide 10: Energy with excellent cash conversion and tighter focus on CAPEX investments
Energy with excellent cash conversion and tighter focus on CAPEX investments Development Free Cash Flow and Cash Conversion Rate CCR 0.7 1.3 0.8 1.1 Ø 0.97 €bn 1.9 4.0 2.8 2.3 FY 2009 FY 2010 FY 2011 FY 2012 CCR FY 2011 and Ø CCR w/o AREVA impact CAPEX and Depreciation €m CAPEX 613 515 587 532 373 5
Slide 11: Energy 2014: Driving Sector Margin to at least 12% in FY 2014
Energy 2014: Driving Sector Margin to at least 12% in FY 2014 Profit margin as reported (% revenue) ≥12.0% +420bps €3.2bn 7.8% ~3 – 3.5% p.a. pricing pressure Profit Volume / Price Cost Gross Profit 2012 Degression Erosion Inflation Productivity Target 2014 © Siemens AG 2012. All rights reserved. Pa
Slide 12: Cost reduction measures: Clear targets and responsibilities defined
Cost reduction measures: Clear targets and responsibilities defined Degree of implementation Comments €m ~900 ~100 2,200 Continuous improvement is part ~1,200 of Energy Sector's DNA Cost reduction targets mirrored in budget and incentives measures in already Cost not yet implemen- implemented Reduct
Slide 13: Cost reduction of ~€2.2bn is key to reach profitability target
Cost reduction of ~€2.2bn is key to reach profitability target Three major areas for cost reduction Major levers: €bn s Purchase Price Change ple am Purchase Price Change Ex Purchase Price Change – Strong increase of eAuction activities drives procurement savings Material Cost Productivity eAuction
Slide 14: Purchase Price Change – Strong increase of eAuction activities drives procurement savings
ples xam E Purchase Price Change – Strong increase of eAuction activities drives procurement savings +410bps +310bps 17.0% 12.9% 9.8% eAuction Volume FY 2011 FY 2012 Target FY 2014 Recent successes: Additional Benefits: Power Early commitment Transmission Site Installation Works to specification Oil
Slide 15: Strong push in Material Cost Productivity – Gas insulated switchgear (GIS)
ples xam E Strong push in Material Cost Productivity – Gas insulated switchgear (GIS) Design to cost with significantly reduced material usage Material: Material: Switchgear Erection overall Circuit breaker size costs Old New -30% -46% -59% -60% 420 kV 420 kV Old GIS old GIS new New © Siemens AG 201
Slide 16: Value-added measures – New Charlotte plant with 20% productivity increase
ples xam E Value-added measures – New Charlotte plant with 20% productivity increase Improvements Baseline As implemented Improvement (Hamilton) (Charlotte) Total number of Moves 1,180 925 22% Number of Secondary moves 343 184 46% Travel Distance (k feet) 297 110 63% Number of Work Cells 8 26 225% F
Slide 17: Resilient business through the cycles
Executing and delivering on our commitments Resilient business through the cycles €55bn order backlog and high service share robust recurrent revenue streams High underlying profitability and solid cash conversion "Energy 2014" will improve profit margin €3.2bn gross productivity with clear targets
Slide 18: 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