Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — JP Morgan European Capital Goods Conference 2015

24 slides from Siemens Aktiengesellschaft's conference presentation, Jun 11, 2015

  1. Slide 1: Disciplined execution of Vision 2020

    Joe Kaeser, President and CEO Disciplined execution of Vision 2020 JP Morgan European Capital Goods Conference London, June 11, 2015 © Siemens AG 2015

  2. Slide 2: Notes and forward-looking statements

    Notes and forward forward-looking looking statements 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 “exp

  3. Slide 3: Siemens Vision 2020

    Siemens Vision 2020 Value creation and cultural change Value Scale up Strengthen core Drive performance Foster ownership culture and leadership based on common values 2015 2016 2017 2018 2019 2020 Strategic Operational Accelerated growth direction consolidation Optimization and outperformance © Siem

  4. Slide 4: Executing Vision 2020: Capital allocation along strategic imperatives

    Executing Vision 2020 Capital allocation along strategic imperatives Healthcare IT Aero-derivative Divestment to Cerner for US$1.3bn gas turbines and compressors Microbiology £785m purchase price Divestment Di t t to t Beckman B k Coulter C lt ffor 'Siemens – Vision 2020' US$ ~450m and £200m for exc

  5. Slide 5: Installed base secures recurring service revenues with robust after sales margin

    Installed base secures recurring service revenues with robust after sales margin Combined serviceable fleet ((small turbines and compressors) p ) Small/medium Aero-derivative Steam Compressors gas turbines gas turbines turbines 2,500 1,600 1 500 1,500 62 000 62,000 32 500 32,500 2,250 10,000 10,000

  6. Slide 6: Value creation through execution of PG 2020

    Value creation through execution of PG 2020 Technologies push towards 63%+ efficiency Inno- • H-class: >170,000 EOH1), 48# sold, 16# in operation vation • €100m p.a. additional funds; reduce time-to-market • Accelerate next-gen GT technology Drive market share and tap new customer segments Customer

  7. Slide 7: Target to reduce complexity and achieve cost reduction of ~€1bn is on track

    Our target to reduce complexity and achieve cost reduction of ~€1bn €1bn is on track Current status of functional cost reduction Target for Current status Cumulated effects of savings functional €1bn of saving potential are backed with cost reduction concrete measures €1bn €700m – • Significant savi

  8. Slide 8: Fixing remaining underperforming businesses is key priority

    Fixing remaining underperforming businesses is key priority – other options remain Revenue FY 2013 in €bn ~21 ~1.9 Water ~0.9 HC IT ~1.0 ~1.8 Metals ~2.8 Extended Spectrum LV ~2.0 • Footprint optimization ~15 • Reverse integration ~0.7 Postal • Partnering and • Tight Ti ht Managing M i Baggage Handl

  9. Slide 9: Cornerstones for Vision 2020

    Cornerstones for Vision 2020 Future focus on growth, growth innovation and productivity Value Scale up • Innovation initiative • Growth focus S Strengthen h core • Current spectrum • Resource allocation defined / • Adjacent fields adjustments designed • Ongoing productivity drive • Portfolio adjustm

  10. Slide 10: Appendix

    Appendix © Siemens AG 2015 Page 10 London, June 11, 2015 JP Morgan European Capital Goods Conference

  11. Slide 11: Outlook Fiscal 2015 confirmed despite weakening indicators

    Outlook Fiscal 2015 confirmed despite weakening indicators Basic earnings per share (Net income) In € At least 15% • We believe that our business environment will growth be complex in fiscal 2015, among other things due to geopolitical tensions. • We expect revenue on an organic basis to 6.55 6.37 r

  12. Slide 12: Restructuring and operational consolidation in FY 2015 financed by disposal gains

    Restructuring and operational consolidation in FY 2015 is financed by disposal gains Basic earnings per share (Net income) In € In €bn ~0.2 At least 15% ~1.6 growth 03 ~-0.3 Guidance ~-0.3 ~-0.1 includes 6.37 ~ 1.4 ~-0.75 B/S/H gain Audiology HC IT gain Unify No more No more Restruc- gain income inc

  13. Slide 13: Siemens Vision 2020 on track: Execution milestones until 2017

    Siemens Vision 2020 on track Execution milestones until 2017 Until Execution steps Q4 2014 Implementation of new and simplified organization by Oct. 1 Introduction of incentive system 2015 Q2 2015 Stringent portfolio optimization - closing of announced divestments Measures for structural optimizatio

  14. Slide 14: Oil & Gas exposure still limited

    Oil & Gas exposure still limited - ”Secondary impact” could be higher Direct Oil & Gas exposure Exposure along value chain (Estimate in % of FY 2014 orders incl. Rolls-Royce pro forma) Upstream Midstream Downstream ~40% ~25% ~35% PG: <5% New Unit & Aftermarket & ~8% % PD: 2.5% S l ti Solutions S Ser

  15. Slide 15: Oil & Gas – Recent acquisitions leverage attractive offerings and market access

    Oil & Gas – Recent acquisitions leverage attractive offerings and market access Onshore O&G extraction O&G production Pipeline LNG Portfolio and growth synergies • Advanced offering from drives to solutions, e.g. Siemens compressor p train with R ll R Rolls-Royce Siemens turbines Dresser-Rand • Effi

  16. Slide 16: One Siemens Financial Framework

    One Siemens Financial Framework – Clear targets to measure success & accountability One Siemens Financial Framework Siemens Capital efficiency Capital structure Growth: (ROCE2)) (Industrial net debt/EBITDA) Siemens > most 15-20% up to 1.0x relevant competitors1) (Comparable revenue growth) Total cos

  17. Slide 17: Financial Cockpit

    Financial Cockpit Orders Revenue Profit Industrial Business (IB) Net Income in €bn +7% Comp. 0% in €bn in €bn (+16%) (nom.) (+8%) -5% +239% 20.8 17.9 16.7 18.0 1.7 1.7 3.9 10.3% 9.0% 1.2 B-t-B 1.07 1.15 Margin 9.6% Q2 14 Q2 15 Q2 14 Q2 15 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 EPS (“all-in”) ROCE (“all

  18. Slide 18: PG and WP: Q2 results

    PG: Accelerating innovation and productivity actions WP: Continued operational challenges impact margin Power and Gas (PG) Wind Power and Renewables (WP) Orders Revenue Orders Revenue €bn €bn +4%1) -6%1) -27%1)) -1%1)) 2.7 3.1 2.9 3.0 1.7 1.4 1.2 1.3 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 F

  19. Slide 19: EM and BT: Q2 results

    EM: Progress in execution of legacy projects BT: Productivity push to mitigate CHF strength Energy Management (EM) Building Technologies (BT) Orders Revenue Orders Revenue €bn €bn +2%1) +4%1) +1%1)) +1%1)) 2.8 3.1 2.5 2.8 1.3 1.5 1.3 1.4 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2 FY 14

  20. Slide 20: DF and PD: Q2 results

    DF: Temporarily softer and stronger outlook PD: Commodity related weakness weighs on margin Digital Factory (DF) Process Industries and Drives (PD) Orders Revenue Orders Revenue €bn €bn +1%1) +2%1) -13%1) -5%1) 2.4 2.6 2.2 2.4 2.7 2.4 2.3 2.3 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2

  21. Slide 21: MO and HC: Q2 results

    MO: Stringent project execution HC: Higher growth and solid margin Mobility (MO) Healthcare (HC) Orders Revenue Orders Revenue €bn €bn +95%1) +4%1) +3%1) +2% 2%1) 3.8 2.8 3.2 2.9 3.2 1.8 1.7 1.8 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Profit & Margin Profit & Margin €

  22. Slide 22: Weaker Euro with limited windfall for H1 profitability

    Weaker Euro with limited windfall for H1 profitability, acceleration expected in H2 FY 2015 FX impact in FY 2015 Hedging strategy and effects Quarterly average EUR/USD rates • Limited impact on profitability in H1 due to consistent hedging policy: 1.36 1.37 1.37 1.30 1 32 1.32 1.30 1.33 1 32 1.32 •

  23. Slide 23: Financial calendar

    Financial calendar June June 11, 2015 JP Morgan European Capital Goods Conference (London) June 17, 2015 Deutsche Bank German, Swiss & Austrian Conference (Berlin) July July 30, 2015 Q3 E Earnings i R Release l and dAAnalyst l tC Callll August © Siemens AG 2015 Page 23 London, June 11, 2015 JP Morga

  24. Slide 24: Siemens Investor Relations contacts

    Siemens Investor Relations contacts Investor Relations Internet: www.siemens.com/investorrelations Email: investorrelations@siemens.com IR- +49 89 636 636-32474 32474 Hotline: Fax: +49 89 636-32830 © Siemens AG 2015 Page 24 London, June 11, 2015 JP Morgan European Capital Goods Conference

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