Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2010)
19 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 29, 2010
Slide 1: Siemens Energy: Energy Service Division
Siemens Energy: Energy Service Division Randy Zwirn CEO Energy Service Nuremberg, June 29, 2010 Capital Market Day Energy © Siemens Copyright AG 2010. © Siemens All All AG 2010. rights rightsreserved. 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: Siemens Energy Service: Sustainable foundation of Energy Sector
Siemens Energy Service Sustainable foundation of Energy Sector Met & exceeded the business targets Pillars of profitability 2/3 of next year's Growing faster revenue already than the market secured in backlog Great profitability & Price erosion Leveraging best further improvement offset by factor pr
Slide 4: Driving growth at every dimension
Driving growth at every dimension Service strategic growth model Increase revenue per €/kW Fleet / portfolio: Fleet / installed kW: portfolio New unit fleet growth Increasing service R&D Portfolio expansion Upgrades Wind Value added services Solar thermal (more long term service agreem
Slide 5: Growing fleet drives increased service profitability
Growing fleet drives increased service profitability Fleet / Service operating fleet (# of units) Portfolio Growth 120% 110% Wind 25% 100% Gas 10% Steam stable FY08 FY10 FY12 Gas and wind turbines are the main source of fleet growth Page 5 June 2010 Capital Market Days “Energy” Copyright © Siemens A
Slide 6: High performing portfolio – regional diversity
High performing portfolio – regional diversity Fleet / Portfolio Service sales by market Service sales by product Compressors 4% Asia 10% Emissions Control 7% Africa Middle East 14% Industrial Steam 8% + Wind Middle & Latin America 9% + Solar Fossil Steam 30% Europe 33% O&G Gas 9% >50% Fossil Gas 42
Slide 7: Solid foundation going forward – order backlog already exceeding €18bn
Solid foundation going forward – order backlog already exceeding € 18bn 1 Service All growth Gas € 14bn backlog Coal € 3bn backlog Renewable € 1bn backlog 15 O&M sites Upgrades and Life extensions Wind mainly from offshore € 2bn backlog € 1.75bn backlog € 1bn backlog 400 LTP site Environme
Slide 8: Leverage operating synergies through regionalization
Leverage operating synergies through regionalization Penetration Field service headcount Developed regions 50% of new hires in low cost countries with 50% reduced cost 100% 125% Improved intimacy enables 24 hour on site responsiveness to any site FY07 FY10 +8% p.a. Cross utilization within division
Slide 9: Cross utilization of repair network increases profitability
Cross utilization of repair network increases profitability Penetration Workshop hours in gas turbine shops Hourly cost Divisional synergies expected to reduce workshop 100% hourly cost by 40% In sourcing of repairs to retain technology leadership 60% Alignment of workshop network to optimally serve
Slide 10: Portfolio well positioned to benefit from environmental market drivers
Portfolio well positioned to benefit from environmental market drivers 1 Retirement of coal Fleet / power plants Portfolio 2 Higher utilization of Fleet & gas power plants €/kW 3 Life time extensions €/kW for nuclear power plants 4 Growing renewable Fleet / installed base Portfolio Page 10 June 2010
Slide 11: Continue to innovate to extend service life
Continue to innovate to extend service life – excerpt from Calpine analyst day 2009 €/kW • Calpine has 34 Siemens F-class engines available for upgrade, a subset of which hold high potential for improved economic returns under this program Picture quality “Higher unit dispatch drives 2008 upgrade at
Slide 12: Service Renewables will build upon Fossil and Oil & Gas success stories
Service Renewables will build upon Fossil and Oil & Gas service success stories Fleet / Portfolio Synergies with existing 11,000 MW installed Siemens fleet installed andfleet wind growing service setup Growth: More kW/h for the customer Drive availability and reliability related services resulti
Slide 13: Service Renewables: 468 MW offshore wind park example
Service Renewables will build upon Fossil and Oil & Gas service success stories Fleet / Portfolio Synergies with existing 11,000 MW installed Siemens fleet installed andfleet wind growing service setup Growth: More kW/h for the customer Drive availability and reliability related services resulti
Slide 14: Siemens Energy Service: Sustainable foundation of Energy Sector
Siemens Energy Service Sustainable foundation of Energy Sector Growing: € 18bn backlog & fleet Service – We are Service margin continues to expand in a good spot Well positioned for market trends, geographic diversity Leverage synergies, share best practices Continue to build Green product
Slide 15: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) To supplement Siemens’ Consolidated Financial Statements presented in accordance with International Financial Reporting Standards, or IFRS, Siemens presents the following supplemental financial measures: New orders and order backlog Adjust
Slide 16: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) New orders and order backlog (continued) New orders are generally recognized immediately when the relevant contract becomes legally effective and binding. The only exception are orders with short overall contract terms. In this case, a separa
Slide 17: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Return on equity, or ROE In line with common practice in the financial services industry, Siemens Financial Services (SFS) uses return on equity, or ROE, as one of its key profitability measures. Siemens defines ROE as annualized Income befo
Slide 18: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) EBITDA (adjusted) and EBIT (adjusted) Siemens defines EBITDA (adjusted) as EBIT (adjusted) before amortization (which in turn is defined as Amortization and impairments of intangible assets other than goodwill) and Depreciation and impairment
Slide 19: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Limitations Associated with Siemens’ Supplemental Financial Measures The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular: With respect to adjusted or organic growth rates o