Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (April 2013)
17 slides from Siemens Aktiengesellschaft's investor day presentation, Apr 11, 2013
Slide 1: Industry Financial Perspectives
Industry Financial Perspectives Ralf P. Thomas CFO Industry Sector Capital Market Day Siemens Industry Hanover, April 11, 2013 Unrestricted © Siemens AG 2013. All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on equity (after tax), or ROE (afte
Slide 3: A clear set of financial priorities…
A clear set of financial priorities… Ensure continued capital efficiency Drive structural improvements to deliver 2014 targets Increase flexibility Focus on value-driven capital allocation Strengthen core business …to drive Industry's value Unrestricted © Siemens AG 2013. All rights reserved. Page 3
Slide 4: Consistent margin delivery despite cyclical development
Consistent margin delivery despite cyclical development Long-term comp. revenue growth 1) +20% 8% 5% -2% -2% -3% -20% Long-term EBITDA margin development 15.8% 15.7% +17% +11% 14.8% 13.3% 14.0% EBITDA target range: 11-17% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY 2008 FY 2
Slide 5: Strong, consistent cash generation
Strong, consistent cash generation Free Cash Flow (rolling 4 quarters) €bn FCF 2.6 2.5 2.5 2.5 2.5 2.4 2.5 2.3 2.3 2.3 2.3 2.3 2.2 2.2 2.2 2.2 2.1 2.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Continued focus on asset management improvements Enhance s
Slide 6: A solid track record of capital efficiency
A solid track record of capital efficiency Revenue EBITDA €bn Comp. growth 1) €bn Industry margin corridor: 11-17% EBITDA Margin 13% 2% 16.8% -13% -6% 14.9% 12.5% 13.3% 18.2 19.6 20.5 3.3 17.4 3.1 2.3 2.3 FY 2009 FY 2010 FY 2011 FY 2012 FY 2009 FY 2010 FY 2011 FY 2012 Free Cash Flow ROCE €bn CCR €bn
Slide 7: Challenging markets impact volume and profit
Challenging markets impact volume and profit New Orders Revenue €bn €bn -9%1) -3%1) 4.9 4.5 4.7 4.6 2.5 2.2 2.2 2.2 2.3 2.3 2.2 2.1 Q1 FY 2012 Q1 FY 2013 Q1 FY 2012 Q1 FY 2013 EBITDA Free Cash Flow €bn EBITDA Margin €bn CCR 14.8% 14.0% 0.37 0.14 0.7 0.6 0.2 0.4 0.4 0.1 0.2 0.2 Q1 FY 2012 Q1 FY 2013
Slide 8: Strong revenue growth in emerging countries
Strong revenue growth in emerging countries Revenue by region Industry track record €bn €bn Highlights Growth nominal -4% +12% +5% +9% Growth 2.2 2.8 -6% +13% +2% Automotive comparable 1) China CAGR +4% 20.5 Strong growth in the 19.6 +5% high margin controls, 18.2 17.4 -8% 4.8 2.4 2.8 automation and
Slide 9: R&D commitment for our innovative edge
R&D commitment for our innovative edge R&D R&D invest in software, automation, controls €bn €bn 5.9% +20% 5.7% 5.7% 5.8% % of 0.8 0.6 revenue +17% 1.2 1.1 1.0 FY 2009 FY 2012 1.0 R&D employees in emerging markets +50% 1,300 870 FY 2009 FY 2010 FY 2011 FY 2012 FY 2009 FY 2012 Financials prior to FY 2
Slide 10: Targeted investments in marketing and selling activities
Targeted investments in marketing and selling activities SG&A Sales force in India and China €bn Employees 15.9% 16.1% 15.4% 14.9% in % of revenue 3.3 +25% 0.2 3.0 3,400 0.2 0.4 Other 2.7 2.8 2,700 emerging 0.2 0.3 +27% 0.2 markets 0.2 0.2 2,000 BRIC 1,600 2.3 2.4 2.5 2.7 Developed markets 2009 2012
Slide 11: CapEx spending focused on fastest growth
CapEx spending focused on fastest growth CapEx CapEx in emerging markets €bn €m +14% CAGR +3% 112 97 0.5 0.4 66 72 0.4 0.4 FY 2009 FY 2010 FY 2011 FY 2012 Ratio1) 113% 121% 180% 140% Investment areas Portfolio extension Best-in-class lead factories, e.g. Amberg, Erlangen Capacity extension T
Slide 12: Industry is well positioned in China
Industry is well positioned in China Revenue Factory output €bn €bn +28% +67% 2.5 2.9 2.8 1.0 2.2 0.7 0.9 0.6 FY 2009 FY 2010 FY 2011 FY 2012 FY 2009 FY 2010 FY 2011 FY 2012 Investments Sourcing 1) €bn +72% €bn +60% 0.3 0.7 0.8 R&D 0.3 0.7 0.2 0.2 0.5 CAPEX SG&A FY 2009 FY 2010 FY 2011 FY 2012 FY 20
Slide 13: Margin protection through cost flexibility
Margin protection through cost flexibility Cost flexibility Main levers 2009-2012 Moving down the break-even point 1) Reduction of headcount (~8,300) Selective headcount increase in countries -500 bps with high flexibility (e.g. China ~3,000) 85% Improved productivity in fixed assets Going for
Slide 14: €1.1bn productivity to support Siemens' profit target
Industry 2014 €1.1bn productivity to support Siemens' profit target Industry's contribution to Siemens 2014 €bn ~50 bps. ≥14.0% ~150 bps. ≥13.5% 12.0% Exit Water Technologies 1.1 Integrate LMS Modest Less In line with growth than 1% previous years Profit Volume/ Price Cost Gross Profit Strengthen 20
Slide 15: Clear targets and responsibilities set throughout Sector
Clear targets and responsibilities set throughout Sector Gross Productivity FY 2013-2014 Productivity FY 2013-2014 by Division/Lever €bn 1.1 25% 0.8 35% 15% 40% 0.3 60% 25% Value-added savings DT PLM 1)/DTC 2) savings IA FY 2013e FY 2014e Total Procurement savings Sector led Transformation charges C
Slide 16: My focus areas
My focus areas Delivering for 2014 and beyond High performance over the complete cycle Increasing flexibility Value-driven capital allocation "Industry 2014" drives profitability improvements €1.1bn gross productivity with clear targets and commitments Driving profit margin to ≥14.0% 1) in F
Slide 17: 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. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on eq