Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (December 2013)
23 slides from Siemens Aktiengesellschaft's investor day presentation, Dec 5, 2013
Slide 1: On track to target achievement
Jochen Eickholt | CEO Rail Systems Division On track to target achievement Capital Market Day London, December 5, 2013 Unrestricted © Siemens AG 2013 All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expects,” “looks forward to,” “an
Slide 3: Rail Systems Division
Rail Systems Division Intelligent Rail Systems as a pillar of intelligent infrastructure Infrastructure & Cities Rail Automation Rail Systems High Speed and Revenue distribution1) Locomotives and Commuter Rail Components FY 2013 Rail Electrification 20% Orders: €6.8bn 36% Revenue: €3.1bn 18% Employe
Slide 4: Rail Systems: A backbone of intelligent infrastructure
Rail Systems A backbone of intelligent infrastructure Moving people and goods in and between cities Speed (km/h) Velaro Eurosprinter ICx Vectron Eurorunner Station Asiarunner City Viaggio Avenio, S70 ULF, VAL, Desiro Inspiro, Megacity eBus/eBRT Airport Village 1 10 30 50 Average distance between sto
Slide 5: Velaros Status
Velaros Status Velaro D • All technical adjustments completed • Trains have run over 400,000 test kilometers • Monthly meetings with Deutsche Bahn as well as the German Federal Railway Authority and Ministry of Transport • First delivery to Deutsche Bahn in 11/2013 for training purposes Velaro Euros
Slide 6: Velaros Projects
Velaros Projects Fix them What went Looking forward … Time-frame Homologation environment wrong? Electrification Train Control System Velaro D Project • Stringent project selection • Implemented Non-electrified Train Control Systems B: TBL1.2 3 kV DC/25 kV, 50 Hz (TCS) F: TVM 1.2 complexity • Front-
Slide 7: Our way forward: Three pillars to target performance
Our way forward Three pillars to target performance We are driving bottom-line performance by making our project execution more robust and driving down costs. We are in a very attractive market and are driving top-line growth through selected projects to sustain our strong market share. We serve our
Slide 8: The "Rail on Track" program – examples of implemented measures
The "Rail on Track" program – examples of implemented measures We are making our projects more robust and their execution more stringent Acquisition Concept Design Manufacture Deliver Service • Simplified project organization with clear principles of accountability and stringent • New project mile
Slide 9: The "Rail on Track" program: margin improvement levers
The "Rail on Track" program The management team drives margin improvement through various cost-down levers Profit Margin Improvement approx. +300bps Improvements implemented along time scale of typical rail projects: 24-48 months on average, 5-6 years for “white elephants" by 2015e cumulated +€240m
Slide 10: The "Rail on Track" program: reducing headcount by 7%
The "Rail on Track" program We are reducing headcount by 7%1) and focusing our regional setup -7% Examples of manpower adjustments in selected locations Germany Austria USA United Kingdom Berlin, Erlangen, Vienna, Graz Sacramento London, Munich, Krefeld Northampton FY 2012 FY 2015e1) China Russia Br
Slide 11: Our way forward: Three pillars to target performance
Our way forward Three pillars to target performance We are driving bottom-line performance by making our project execution more robust and driving down costs. We are in a very attractive market and are driving top-line growth through selected projects to sustain our strong market share. We serve our
Slide 12: Rail Systems growing slightly stronger than the market
Rail Systems is growing slightly stronger than the market and is #1 in Orders in FY 2011 and FY 2013 Market growth Growing Orders and market share (3-year average, in €bn)1) Orders (3-year average) CAGR +3% CAGR >3% +34% +2% 47.7 40.3 41.1 15.3 15% 21% 11.0 12.4 85% 79% FY 10 - FY 12 FY 11 - FY 13 F
Slide 13: We follow a selective market approach
We follow a selective market approach Focus on high-value regions, strong local partnerships and cost-optimized sales structures Market volume and growth 2012/2014 – 2015/20171) Key market highlights 3.0% • Western Europe: Remains largest market volume World 2.5% 7.8% • CIS: Unprecedented modernizat
Slide 14: Rail Systems has secured the projects of choice
Rail Systems has secured the projects of choice to focus on sustainable growth Selected Orders in the last 15 months have moved Rail Systems to the #1 market position Desiro City Thameslink for Metro Riyadh for Cross London Trains (XLT) Arriyadh Development Authority (ADA) 1,140 cars 238 cars Desiro
Slide 15: Our way forward: Three pillars to target performance
Our way forward Three pillars to target performance We are driving bottom-line performance by making our project execution more robust and driving down costs. We are in a very attractive market and are driving top-line growth through selected projects to sustain our strong market share. We serve our
Slide 16: The RL portfolio – platform concepts as a basis for 95% of our business
The RL portfolio – platform concepts as a basis for 95% of our business Superior performance in capacity, reliability and life-cycle costs for our customers Moving away from individual solutions to platform based products Platforms are… • Variability where needed to Avenio Velaro drive customer retu
Slide 17: Smart innovations
Smart innovations Superior performance in capacity, reliability and life-cycle costs for our customers Driverless Trains "Always Connected" Intelligent Remote Services Rail Support Locomotive Rail Cover & Service Secure Data Center Transmission Remote Data Access Replacement Part Supply Depot Mobile
Slide 18: Smart innovations: Reduced life-cycle costs via sustainable products
Smart innovations Reduced life-cycle costs via sustainable products Reductions in environmental impact result in cost savings for our customers Velaro Eurorunner Metro Oslo ICx Inspiro Desiro UK Water-based -75% -50% -25% -5% 95% paint and solvent-free Emissions1) Noise Energy use Weight Recyclable
Slide 19: Smart innovations: Reliability of more than 99%
Smart innovations Reliability of more than 99% Service for AVE S 102 in Spain Service for RZD Sapsan in Russia • 26 trainsets in daily operation • Start of passenger service in 2009 • Start of passenger service Madrid-Tarragona • Currently 8 trainsets in daily operation between in 2007 and Madrid-Se
Slide 20: High value products are complemented by intelligent services
High value products are complimented by intelligent services Recent service orders build on and strengthen long-term partnerships with our customers Full service Desiro City Thameslink for Eurostar for First Capital Connect & Owner SPC Eurostar International Ltd. (EIL) 10 years 14 years Velaro TCDD
Slide 21: Growing our service business by adding intelligence
Growing our service business by adding intelligence Proportion of intelligent value-added services is increasing Our strategy Service Revenue growth1) • Offer integrated, innovative and approx. 10% CAGR intelligent services Intelligent value- • Use system data to optimize +24% added services efficie
Slide 22: Our way forward: Three pillars to target performance
Our way forward Three pillars to target performance We are driving bottom-line performance by making our project execution more robust and driving down costs. We are in a very attractive market and are driving top-line growth through selected projects to sustain our strong market share. We serve our
Slide 23: 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. Orders and order backlog; adjusted or organic growth rates of revenue and orders; book-to-bill ratio; Total Sectors profit; return on equity (af