Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Nomura German Swiss Conference, Tokyo 2009
30 slides from Siemens Aktiengesellschaft's conference presentation, Nov 17, 2009
Slide 1: Siemens: Solid performance in a tough environment
Siemens: Solid performance in a tough environment Joe Kaeser, CFO & Member of Managing Board Nomura German Swiss Conference, Tokyo 17 November 2009 Copyright © Siemens AG 2009. 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: Strong businesses in attractive markets driven by megatrends
Siemens – Strong businesses in attractive markets driven by megatrends High quality of our businesses #1 or #2 position in market share and technology Attractive markets with Integrated technology company tailwind due to megatrends ~€38bn1) ~€23bn1) ~€11bn1) Demographic change Industry Energy Health
Slide 4: Strategic company programs at Siemens: Focus on sustainable value creation
Strategic company programs at Siemens: Focus on sustainable value creation Performance Fit 4 2010 Fit4More •Transparency • Portfolio & •Accountability Performance •Performance Operation 2003 • Operational (Agenda of the • Target margins Excellence new CEO) 10 Point Program • Integration Atecs • Peop
Slide 5: Next performance-level – Our principles and priorities
Next performance-level – Our principles … Our priorities … Increase Portfolio priorities TRANSPARENCY Leadership structure Ressource allocation Enforce ACCOUNTABILITY Margin benchmarking Equity culture Drive Cost reduction/Supply chain PERFORMANCE SMART Program Page 5 Copyright © Sieme
Slide 6: The Targets integrate our performance aspiration
The Targets integrate our performance aspiration Financial targets SG&A Best-in-class >2x GDP reduction margin Growth of 10% ranges Capital Cash Optimized Efficiency conversion capital ROCE "1-growth Structure 14 – 16% rate" 0.8 – 1.0x Page 6 Copyright © Siemens AG 2009. All rights reserved.
Slide 7: New sector organization with transparent governance and clear leadership structure
New sector organization with transparent governance and clear leadership structure Supervisory Board Heads of Global Functions Managing Board Finance and Controlling Legal and Compliance Chief Executive Officer Human Resources Technology Industry Energy Healthcare Supply Chain Management C
Slide 8: Stringent execution on SG&A savings in relative and absolute terms
Stringent execution on SG&A savings in relative and absolute terms Absolute SG&A performance Relative SG&A cost development shows in P&L in % of revenue: -270bp 16.7% 14.0% -16% €bn 12.1 €bn 9.5 8.0 Q3 3.2 -19% 8.0 2.6 Selling 8.9 -22% Q2 3.2 6.4 2.5 -6% G&A 3.2 Q1 3.1 2.9 1.6 FY07 Q3 YTD 09 Q3 YTD
Slide 9: Weak market development in Industry Sector
Weak market development in Industry Sector with short- and potentially medium term implications Market volume Structural adjustments Industry markets will not recover to 2008 levels anytime soon Immediate actions (Cutting discretionary Energy and Healthcare spending, short work week, …) offer st
Slide 10: Siemens continues to invest in its innovative strength
Siemens continues to invest in its innovative strength R&D investments in % of sales Examples R&D in % of sales First tram without overhead 7.0 contact lines and with energy storage 6.0 5.4% 5.1% 4.9% 5.0 4.7% 4.7% World’s most powerful gas turbine 4.0 with efficiencies over 60% in combined cycl
Slide 11: Our innovations address key customer needs
Our innovations address key customer needs World’s first tram without World’s most powerful World’s fastest CT with OCL1) and with energy storage gas turbine lowest radiation Energy efficient trams H-Frame gas turbine Somatom Definition Flash Hybrid energy storage system Fast start-up capability
Slide 12: Siemens Japan: Energy Sector serves two markets
Siemens Japan: Energy Sector serves two markets Won the Technology & Development Award Overseas, Export Market in cooperation with Japan Trading Houses & O&G EPC companies Japan Domestic Market in cooperation with Gas Turbine packagers, in direct business with EPCs & Japan Utilities Page 12 Copyrigh
Slide 13: Environmental care drives economic success
Environmental care drives economic success IT and software are integral parts of Siemens’ Siemens Environmental environmental solutions Portfolio IT Solutions and Building Lighting (OSRAM) Services Technologies Revenue: 2008: ~ €21bn 2009: ~ €23bn (+11%) Fossil Power Renewable Power Power Power Ge
Slide 14: BRIC and Middle East Countries will be the major growth generators after the crisis
BRIC and Middle East Countries will be the major growth generators after the crisis Regions compared Status Quo 2008 Growth 2008- 2014 100% 100% Global GDP Others 46% 67% 67% 53% BRIC & ME 19% BRIC & ME 49% 18% 54% 47% USA 19% 23% USA 18% Germany 16% 6% Germany 0% Siemens GDP GDP volume Page 14 Copy
Slide 15: Siemens provides Answers on the opportunities of growth markets: SMART Initiative
Siemens provides "Answers" on the opportunities of growth markets: SMART 1) Initiative Partitioning of low- / mid- & SMART high end markets and countries mid & low-end markets Developed Growth markets markets High-end products e.g. D, USA, JPN e.g. CHN, IND current & High-end High-end future focus G
Slide 16: Global, Innovative, Integrated
We are Global Innovative Integrated A Lighthouse for more than 160 years! Page 16 Copyright © Siemens AG 2009. All rights reserved.
Slide 17: TAP: Consistent execution against plan
TAP: Consistent execution against plan Reporting dates Milestones (deliverables) January 2008 New target margins for Energy and Industry Sector Q1 call and AGM Target margins for Divisions April 2008 Update on SG&A project Q2 analyst conference Start reporting in new structure July 2008 Ou
Slide 18: Financial calendar
Financial calendar December December 3, 2009 Q4 financial report and analyst conference (London) Q4 Roadshow January January 11, 2010 Commerzbank German Investment Seminar (New York) January 26, 2010 Q1 financial report and AGM (Munich) Q1 Roadshow Page 18 Copyright © Siemens AG 2009. All rights res
Slide 19: Siemens investor relations contact data
Siemens investor relations contact data Mariel von Drathen +49-89-636-33780 Munich Office +49-89-636-32474 Internet: http://www.siemens.com/investorrelations Email: investorrelations@siemens.com Fax: +49-89-636-32830 Page 19 Copyright © Siemens AG 2009. All rights reserved.
Slide 20: Appendix
Appendix Page 20 Copyright © Siemens AG 2009. All rights reserved.
Slide 21: Financial highlights of Q3 FY09
Financial highlights of Q3 FY09 Strong backlog of €84.3bn softens impact of recession; solid Energy b-t-b at 1.06x Orders down 27%1) from very high prior year levels Revenues -4% impacted by difficult business environment at Industry Total sector profit of €1.7bn leading to a healthy margin
Slide 22: Q3 09 Key Figures – New orders
Q3 09 Key Figures – New orders New orders Y-o-Y Y-o-Y adj.* Q-o-Q €m Q3 2008 Q2 2009 Q3 2009 Q3 08 - Q3 09 Q3 08 - Q3 09 Q2 09 - Q3 09 Industry Sector 11,408 8,801 6,597 -42% -42% -25% Industry Automation 2,214 1,618 1,540 -30% -29% -5% Drive Technologies 2,307 1,627 1,358 -41% -42% -17% Building Te
Slide 23: Q3 09 Key Figures – Revenue
Q3 09 Key Figures – Revenue Revenue Y-o-Y Y-o-Y adj.* Q-o-Q €m Q3 2008 Q2 2009 Q3 2009 Q3 08 - Q3 09 Q3 08 - Q3 09 Q2 09 - Q3 09 Industry Sector 9,321 8,645 8,129 -13% -14% -6% Industry Automation 2,202 1,685 1,574 -29% -27% -7% Drive Technologies 2,164 1,954 1,699 -21% -22% -13% Building Technologi
Slide 24: Q3 09 Key Figures – Profit and margin
Q3 09 Key Figures – Profit and margin Profit and margin Margin Margin Margin Target €m Q3 2008 Q2 2009 Q3 2009 Q3 2008 Q2 2009 Q3 2009 range Industry Sector 1,162 671 534 12.5% 7.8% 6.6% 9-13% Industry Automation 467 97 85 21.2% 5.8% 5.4% 12-17% Drive Technologies 363 244 171 16.8% 12.5% 10.1% 11-16
Slide 25: Healthy profitability in a difficult business environment
Healthy profitability in a difficult business environment Q3 FY09 Order growth y-o-y1) Q3 FY09 Order Revenue Profit y-o-y1) y-o-y1) margin Europe/C.I.S./Africa/ME -25% Siemens - 27% - 4% (therein Germany) -29% Industry - 42% - 14% 6.6% Industry Automation -29% -27% 5.4% Americas -34% (therein USA) D
Slide 26: Q3 09 Net Debt Bridge: Net debt improved over the last quarter
Q3 09 Net Debt Bridge: Net debt improved over the last quarter €bn Therein e.g. Interest paid -0.2 Adj. ind. FX effects on net debt +0.4 Adj. ind. Adj. ind. ND/EBITDA1) ∆ fair value of debt in hedge ND/EBITDA2) ND/EBITDA II2) 1.12x accounting +0.4 0.82x 0.72x FX-swaps +0.3 Change in NWC e.g.
Slide 27: 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; Adjusted or organic gro
Slide 28: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) Adjusted or organic growth rates of Revenue and new orders In its financial reports, Siemens presents, on a worldwide basis and for each Sector and Cross-Sector Business, the percentage change from period to period in Revenue and new orders a
Slide 29: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) ROCE at the Siemens group level, on a continuing operations basis Siemens also presents group ROCE on a continuing operations basis. For this purpose, the numerator is Income from continuing operations and the denominator is CE, less Assets
Slide 30: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) Adjusted industrial net debt Siemens defines adjusted industrial net debt as net debt less (1) SFS debt excluding SFS internally purchased receivables; less (2) 50% of the nominal amount of our hybrid bond; plus (3) the funded status of pensi