Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — EPG Conference 2007
30 slides from Siemens Aktiengesellschaft's conference presentation, May 21, 2007
Slide 1: Siemens EPG Conference
Siemens EPG Conference May 21, 2007 Klaus Kleinfeld, CEO
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: Key figures
Key figures Q2 FY07 Δ yoy In millions of euros FY06 (in %, except for (IFRS) (IFRS) EPS) New orders 23,469 +9 84,702 Sales 20,626 +10 76,253 Group profit 1,964 +49 4,499 (from Operations) Net income 1,259 +36 3,335 Earnings per share 1.34 +0.36 3.51 (in €, not diluted; change in €) Net cash (901)1)
Slide 4: Fit4More – Short term action program started in April 2005
Fit4More – Short term action program started in April 2005 Initial situation beginning 2005 April 2005 – Start Fit4More Program Fit 4More: Profit & Growth Program • Portfolio optimization Performance and Portfolio Operational Excellence People Excellence Corporate Responsibility necessary Solve Mo
Slide 5: Two-pronged strategy successfully implemented
Two-pronged strategy successfully implemented in bn. € +60% - 33% ~ 80 ~ 75 ~ 50 e.g. Sale of Dematic Acquisitions Reorientation of I&C incl. Organic growth JV Nokia Siemens SIS Reorganization Restructuring SBS Sales Strategic Sales after Strengthening Q2 FY07 2004 Reorientation strategi
Slide 6: We significantly strengthened our strongest businesses
We significantly strengthened our strongest businesses Application fields Acquisitions Market position VA Tech (7/2005) T&D # 4 Wheelabrator (10/2005) U.S. leader in flue gas Energy & desulphurization Environmental Care Sustec (5/2006) leading in gasification Kühnle, Kopp & Kausch (7/2006) leading i
Slide 7: All Groups reached or exceeded their margin ranges
All Groups reached or exceeded their margin ranges Profit margin Groups Margin ranges Status Q2 FY07 IFRS SBS 5.2% 5–6% A&D 14.2% 11–13% I&S 4.6% 4–6% SBT 7.5% 7–9% PG 10.7% 10–13% PTD 8.1% 5–7% TS 5.0% 5–7% SV 6.3% 5–6% Med 13.4% 11–13% Osram 10.5% 10–11% SFS* 52.6% 18–22% * Return on equity Page 7
Slide 8: Sales growth well above 2xGDP
Sales growth well above 2xGDP Siemens New Orders and Sales (trailing four quarters)1) billions of euros COM effect 100 90 New Orders 80 Sales 70 2000 2001 2002 2003 2004 2005 2006 FC2007 1) As of data point FY 2006 continuing operations w/o COM, according to IFRS Page 8 EPG Conference
Slide 9: Accelerating Profit & Growth
: Accelerating Profit & Growth 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 ex
Slide 10: Company targets address all value drivers
Company targets address all value drivers Growth Profitability Cash • Outpace world economic growth • Improved profitability on Group • Stronger focus on cash to finance with a growth rate level through new margin ranges future growth and investments > 2 x GDP • Additional target to optimize Siemens
Slide 11: Margin ranges increased for nine out of eleven Groups
Margin ranges increased for nine out of eleven Groups New margin Margin ranges ranges Q2 FY07 Fit4More Fit4 2010 SIS 5-6% 5.2% 5-7% A&D 11-13% 14.2% 12-15% I&S 4-6% 4.6% 5-7% SBT 7-9% 7.5% 7-9% PG 10-13% 10.7% 10-14% PTD 5-7% 8.1% 7-10% TS 5-7% 5.0% 5-7% SV 5-6% 6.3% 7-9% Med 11-13% 13.4% 13-15% Osr
Slide 12: Our strategy: Strong businesses in attractive markets
Our strategy: Strong businesses in attractive markets High quality of our businesses Os- PG PTD ram A&D I&S SBT TS SV Med SIS No. 1 or No. 2 position Attractive markets with tailwind from Application fields megatrends Increasing scarcity of Megatrends Energy & natural resources Environmental Care Gr
Slide 13: We are committed to providing shareholder return
We are committed to providing shareholder return Net Dividend Payments in EUR Balance Sheet Considerations 1.80 € G R 1.60 € CA 1. Share buyback: % 1.40 € 10 Don‘t expect a share buyback in the short-term GR 1.20 € C A 2. Convertible: 1.00 € 6% Multiple options 0.80 € 3. Gearing: 0.60 € Debt capac
Slide 14: Outlook: We believe we can do even better
Outlook: We believe we can do even better Compliance: Zero tolerance Strong focus on cash and capital efficiency Continued profitable growth FY07: Maintain operating momentum built up in first half year Page 14 EPG Conference
Slide 15: Appendix
SIEMENS Appendix
Slide 16: New orders – Strong growth with 9%
New orders – Strong growth with 9% Q2 FY07 Δ Q2 FY07 Δ Groups Regions (in mio. €) (in %) (in mio. €) (in %) SBS 964 -29 Europe excl. Germany 8,105 19 A&D 4,154 18 Germany 3,826 5 I&S 2,434 -1 Americas 6,332 12 Asia-Pacific 3,396 19 SBT 1,364 3 PG 5,017 54 Middle East / C.I.S. / Africa 1,810 -29 PTD
Slide 17: Revenue +10% – Outstanding growth in the Power Groups
Revenue +10% – Outstanding growth in the Power Groups Q2 FY07 Δ Q2 FY07 Δ Groups Regions (in mio. €) (in %) (in mio. €) (in %) SBS 1,206 -13 Europe excl. Germany 6,795 16 A&D 3,711 16 Germany 3,860 6 I&S 2,172 2 Americas 5,376 1 Asia-Pacific 2,892 8 SBT 1,335 14 PG 3,072 25 Middle East / C.I.S. / Af
Slide 18: Fit4More - A great success
Fit4More - A great success Achieved what we set out to do • All Groups reached their margin ranges • Fostered profitable growth • Revenue growth of > 15% p.a.1) • Company value substantially increased • Company value increased 54%2) • Successful reorientation of major parts of portfolio • Two-pronge
Slide 19: Power Generation: Growth through innovations and acquisitions
Power Generation: Growth through innovations and acquisitions Wind revenues New H-Frame turbine: +51% • World's most efficient turbine, efficiency > 60% (CCPP) • Reduces CO2 emissions by 40.000 t p.a. compared SGT5-8000H to today's best in class Siemens Wind Power H1 06 H1 07 • Entry into strongly g
Slide 20: Automation: High energy savings through new drive systems
Automation: High energy savings through new drive systems Robicon Perfect Harmony medium-voltage converter • Compact design, even smaller footprint • Enabling exact control of motor speed according to requirements • Potential energy savings of up to 50% by replacement of conventional drives with var
Slide 21: UGS - a perfect fit with A&D
UGS - a perfect fit with A&D UGS Siemens A&D Factory Automation Digital Factory: #2 design 4) design Factory automation: #1 3) TIA PLM CAx1) : #2 TIP5) Process automation: #3 Product cPDM2): #1 Manufacturing Electrical installation tech.: #2 design Winning > 2x market combination growth UGS Revenue
Slide 22: Healthcare: Strong organic growth through innovations
Healthcare: Strong organic growth through innovations Leadership in innovations (examples) Market share gains1) Tim2) technology: • Most successful innovation in MR • Higher image quality, more patient comfort, Magnetic +14% p. optimized workflow in MR Resonance • 50% higher patient throughput, up t
Slide 23: Refined Segment Reporting for better Tracking
On Transparency: Refined Segment Reporting for better Tracking OLD NEW Group Profit Group Profit “Net Cash from Operating and “Free Cash Flow” by Group Cash Conversion Investing Activities” by Group 9 Cash Flow from Operations by Group Unchanged 9 Capex as defined below Operating CF Capex
Slide 24: Estimated underfunding of Siemens pension plans improved by € 1.2 bn
Estimated underfunding of Siemens pension plans1) improved by € 1.2 bn Despite the negative impact of interest rate increases on fixed income investments Siemens was able to generate an Actual Return of 7.3% annualized (€ 0.8 bn) over the last six months, mainly due to strong equity markets Incr
Slide 25: IPO preparations for SV on track
IPO preparations for SV on track Siemens automotive systems – Future trends and basic requirements A success story Zero emissions Zero accidents EUR 10 billion global business Always on Average growth of 10% a year (1989 – 2006) Margin range reached every year since + 2003 Outstanding positi
Slide 26: ROCE Definition
ROCE Definition Income from Continuing Operations (post tax), before net interest expense Post-tax ROCE from Continuing Operations = Capital Employed (for Siemens, including SFS, SRE and Treasury) Source Income (loss) from continuing operations (i.e. post tax) (Profit and Loss Statement) +/– Other i
Slide 27: Cash Conversion Rate Definition
Cash Conversion Rate Definition Free Cash Flow Cash Conversion Rate (Continuing Operations) = Income from Continuing Operations Source Cash Flow from Operations (Continuing Operations) (Cash Flow Statement) + Additions to intangible assets and property, plant and equipment (Continuing Operations) (f
Slide 28: Financial calendar FY07
Financial calendar FY07* June 21-22 June Capital Market Days 2007, Berlin July 26 July Third quarter financial results FY07 – conference call November 8 November Preliminary figures for FY07 January 24 January Annual General Meeting * Preliminary, updates will be posted at: www.siemens.com/financial
Slide 29: 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 30: 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 Investor Relations e-mail: inv