Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (December 2008)
30 slides from Siemens Aktiengesellschaft's investor day presentation, Dec 18, 2008
Slide 1: Siemens Industry − Creating Value through Technological Leadership
Siemens Industry − Creating Value through Technological Leadership Dr. Heinrich Hiesinger, CEO Industry Capital Market Days 'Industry' Munich, December 18, 2008 Copyright © Siemens AG 2008. 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: Industry Sector – A strong portfolio for industry customers
Industry Sector – A strong portfolio for industry customers Industry Sector Creating value through technological leadership Efficiency Flexibility Productivity Industry Drive Industry Building Osram Mobility Automation Technologies Solutions Technologies Revenue 08 1) 8.7 8.9 7.1 4.6 6.0 5.8 Profit
Slide 4: Industry Sector is the platform for highest performance
Industry Sector is the platform for highest performance Industry Sector Faster growth Industry Division Cost synergies requirements CAPEX discipline Leading positions in Leading technologies attractive markets Streamlined portfolio Driving the customer Strong pool of top experts agen
Slide 5: My agenda in 2008 – A year of transition
My agenda in 2008 – A year of transition Effective leadership team in place Clear targets for growth, margin and cash flow Initiate continuous improvement process for operations – Organization, performance and capabilities Solve major issues – Mobility in Motion On track Sharpen strategy for Industr
Slide 6: 2008 – First year of Industry Sector – A year of growth and success
2008 – First year of Industry Sector – A year of growth and success New Orders Revenue €bn Favorable market €bn Very strong revenue +9% conditions in all our +6% growth especially in 39.1 42.8 markets until May 2008 industrial end markets 36.1 38.1 Order entry with On comparable level book-t
Slide 7: Key issues relating to Q4 2008
Key issues relating to Q4 2008 Performance hit by lower volume esp. in automotive lighting and U.S. consumer lighting Charges for structural adjustments to account for lower volume OSRAM (€129 million) – 1/3 of charges will hit cash flow in 2009 Disposal of Global Tungsten & Powders (~€130 mil
Slide 8: 2009 major focus – Mastering the economic downturn
2009 major focus – Mastering the economic downturn Ensure target Continuous Outperform market Adapt CAPEX margin portfolio growth spending to growth achievement optimization Focus sales Benefit from SG&A Discipline in Divest non-core activities on still cost improvements CAPEX spending activ
Slide 9: Outperform market development – differentiated and focused approach towards end markets
Outperform market development – differentiated and focused approach towards end markets … Market expectations Adapt to challenging markets €bn Market Revenue Metals market: Since February–shift focus from Market growth 2008 2008 to 2009 2008 new greenfield plant sales to lifecycle service sales wi
Slide 10: … and regional markets
… and regional markets Market expectations Adapt to challenging markets €bn Western Europe: Market Market growth Revenue 2008 2008 to 2009 2008 Exploit large installed base to grow lifecycle business through OPEX optimization for 460 38 customer APAC/ APAC/ Middle East Americas: Middle East 20%
Slide 11: Outperform market growth
Outperform market growth YoY – Order growth (comparable) 32% 9% 12% 11% We will outperform market growth 0% YoY order level expected to be lower Q1 Q2 Q3 Q4 2008 2009 YoY – Revenue growth (comparable) We started FY 2009 with a backlog 12% covering 9% 8% 8% 60% revenue for Q1 3% 40% revenue
Slide 12: Striving hard to achieve target margins in the face of turbulent markets
Striving hard to achieve target margins in the face of turbulent markets Sector profit margin Fixed cost reduction Execution of SG&A measures Restructuring on top of SG&A Capital cost optimization Variable cost reduction Purchasing potential Footprint of value added 10.1% Productivity in
Slide 13: Strong low cost footprint – Key priority to drive margin and growth
Strong low cost footprint – Key priority to drive margin and growth Emerging market revenue Low-cost manufacturing headcount 46% 50% 33% 14% 2002 2010 2008 2010 Low-cost procurement Low-cost R&D headcount 22% 25% 20% 16% 2005 2008 2008 2010 Page 13 December 2008 Capital Market Days 'Industry' Copyri
Slide 14: Strict CAPEX discipline to match growth expectations
Strict CAPEX discipline to match growth expectations CAPEX allocation Continuous portfolio optimization CAPEX Ratio 2008 114% 1+ growth rate Divestments ∑ Revenue ~ €600 mil. Wireless modules 110% Hydrocarbon services Global Tungsten & Powders 109% … 108% ∑ Revenue ~€300 mil. Acquisitions
Slide 15: We started preparing early and are well ahead of the curve
We started preparing early and are well ahead of the curve Outperform market growth Ensure target margin achievement Adapt CAPEX to match growth expectations Portfolio optimization Continuous assessment of sales / pipeline Page 15 December 2008 Capital Market Days 'Industry' Copyright © Siemens AG 2
Slide 16: The way I lead the Industry Sector
The way I lead the Industry Sector Outperform market growth Setting Stay in target margin range clear targets CAPEX at depreciation level Cash conversion rate = 1 – growth Driving customer agenda … Efficiency improvements Setting clear Flexibility enhancement strategic Productivity i
Slide 17: Setting clear targets – Driving value
Setting clear targets – Driving value Industry Sector No. 1 in the market Industry Drive Industry Building OSRAM Mobility Automation Technologies Solutions Technologies Target 12-17% 11-16% 5-7% 7-10% 10-12% 5-7% margin Focus on Restructure Focus on margin Restructure and deliver Strategic strength
Slide 18: Industry Strategy – Creating customer value through technology leadership
Industry Strategy – Creating customer value through technology leadership Industry customer Industry sector Superior customer priorities offering benefit Productivity Automation of industry lifecycles: Increased Energy demand productivity Environment = Resource Automation Engineering scarcit
Slide 19: Executing our strategy – Creating value through technology leadership
Executing our strategy – Creating value through technology leadership Industry Sector Industry Drive Industry Building Osram Mobility Automation Technologies Solutions Technologies SIMATIC: SINUMERIK: COREX: Energy Crystal Light: Eurosprinter: De facto Open inter- Technology contracting: German Futu
Slide 20: Superior customer benefits – Productivity increase
Superior customer benefits – Productivity increase will improve customers' cost competitiveness Increased productivity Production time and Reduction of delivery Streetlights upgraded material reduced by 1/3 time by 50% to LED lighting -30% -50% x 3.3 in hours 50,000 15,000 Integrated drive and motio
Slide 21: Superior customer benefits through – Flexibility
Superior customer benefits through – Flexibility Enhanced flexibility Process planning time Reduction in time Increasing frequency cut in half to market by 20% of trains -50% -20% -50% in seconds 200 100 PLM software PLM reduces development time RUBIN driverless metro, Shenyang Liming Aero-Engine fo
Slide 22: Superior customer benefits through – Efficiency
Superior customer benefits through – Efficiency Improved efficiency Reduction of emissions Reduction of Reduction of pure water by 80-95% CO2 emissions by 25% production costs by 25% g/t hot metal -25% -25% 1,000 810 310 40 45 100 SO2 Dust NOx COREX technology, Baosteel Energy-saving partnership Kra
Slide 23: How can the Industry Sector leverage value generation?
How can the Industry Sector leverage value generation? Î Increased productivity Joint customer 1 Î Enhanced flexibility value proposition Î Improved efficiency Î Shared key account management 2 Joint customer base Î Common distributor management Î Electrical Building (EB) sales approach Î Automation
Slide 24: Joint technology developments are an integrating element of Industry
Joint technology developments are an integrating element of Industry IA DT IS MO BT Osram Simotion Steel plants Automation Simatic Railway automation Building Automation Mining, Marine Drives Sinamics Trains Variable speed drives Light Room Air Conditioning Control Blinds Modular platforms are a sig
Slide 25: Leading technology across Divisions makes the difference
Leading technology across Divisions makes the difference Baggage handling at Beijing Airport I MO Complete installation of 68-km baggage handling system I MO High-speed tray conveyors, conveyor belts and tilt-tray sorters (up to 19,200 bags/h) I DT >9,000 Siemens motors I IA Control of motors by Sim
Slide 26: Industry will drive profits by creating customer value through technology leadership
Industry will drive profits by creating customer value through technology leadership Leverage proven strengths in automating industry lifecycles – Engineering, automation, solutions, know-how over the entire lifecycle Outperforming market growth Revenue driven by Technology leadership with superior
Slide 27: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) Profit Total Sectors is reconciled to “Income from continuing operations before income taxes” under “Reconciliation to consolidated financial statements” in the table “Segment Information.” See our Financial Publications at our Investor Relati
Slide 28: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) Average Capital employed and average Assets for the fiscal year is calculated as a “five-point average” obtained by averaging Capital employed and Assets at the beginning of the first quarter plus the final figures for all four quarters of th
Slide 29: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Our capital structure target is based on an Adjusted industrial net debt divided by EBITDA (adjusted). For the calculation of Adjusted industrial net debt, we subtract from Net debt (defined as Long-term debt plus Short-term debt and current
Slide 30: Siemens investor relations contact data
Siemens investor relations contact data Michael Sen +49-89-636-33780 Munich Office +49-89-636-32474 US Office +1-408-464-2004 Internet: http://www.siemens.com/investorrelations Email: [email protected] Fax: +49-89-636-32830 Page 30 December 2008 Capital Market Days 'Industry' Copyright ©