Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (December 2014)
68 slides from Siemens Aktiengesellschaft's investor day presentation, Dec 9, 2014
Slide 1: Energizing the future
Roland Fischer | Power and Gas CEO Energizing the future Siemens Capital Market Day | Berlin, December 9, 2014 © Siemens AG 2014
Slide 2: Notes and forward-looking statements
Notes and forward-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 “expect,” “look forw
Slide 3: Industry leader in Power Generation and Oil & Gas
Industry leader in Power Generation and Oil & Gas Key figures FY 2014: €14bn orders | 41,500 employees | 11 to 15% margin target New New Large Gas Turbines Distributed Steam Turbines Compressors Energy Solutions Instrumentation & Generators Generation and Electrical • Gas turbines • Industrial gas •
Slide 4: New market environment evolving
New market environment evolving Addressed market Financials in €bn in €bn 66 Orders Revenue -12% 2% -2%1) -5%1) 55 Growth 15.1 53 14.0 14.0 CAGR 12.7 48 FY 2014-2020 O&G 6% Distributed generation 8% FY 2013 FY 2014 FY 2013 FY 2014 Large Profit and margin Free Cash Flow power +4% generation -2% -16%
Slide 5: Accelerated value creation
Accelerated value creation in €bn • Strategic acquisitions 17.4%1) • R&D and speed of + innovation Profit 15.2% margin Drive • Go-to-market + growth 14.0 12.7 Cultural change • Become truly PG customer-centric Revenue focus • Reinforce "One Siemens" • Foster entrepreneurial FY 2013 FY 2014 Short- Mi
Slide 6: Strong base to reach ambitious targets
Strong base to reach ambitious targets Technologies push towards 63%+ efficiency +2pps • H-class: >100,000 EOH1), 44# sold, 13# in operation 63% ✓ R&D • SGT-800 (advanced blade cooling) to stay ahead 61% Market share up – organically and via M&A Go-to- • Market entry into large Oil & Gas power gener
Slide 7: Increasing R&D investments to stay ahead
Increasing R&D investments to stay ahead Base technology development R&D spending1) Gas turbine next generation at 63%+ efficiency +11% Speed of innovation/R&D process Modularization Cost savings across the entire portfolio Portfolio optimization Small/medium gas turbines and ADGTs Data management •
Slide 8: Good complementary fit of strategic acquisitions
Good complementary fit of strategic acquisitions Addressed Market share up market growth CAGR FY 2014-FY 2020 Closing Market • Compression and O&G power generation 6% ✓ Dec 1 • Distributed generation 8% Customer access, references and >100,000 units installed Fleet Gas turbines Aero-derivative Steam
Slide 9: Focus on quality and profitability
Markus Tacke | Wind Power and Renewables CEO Focus on quality and profitability Siemens Capital Market Day | Berlin, December 9, 2014 © Siemens AG 2014
Slide 10: Notes and forward-looking statements
Notes and forward-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 “expect,” “look forw
Slide 11: Leading technology player in wind industry with unmatched track record in offshore
Leading technology player in wind industry with unmatched track record in offshore Key figures FY 2014: Orders €7.8bn; employees 12,200; margin target 5 to 8% Offshore Onshore Service 4.7 GW fleet in sea 21 GW installed 17 GW under service 5.4 GW in backlog 2 GW in backlog agreement #1 market positi
Slide 12: Path to increased margin established; expect to be back in target range
Path to increased margin established; expect to be back in target range Focus on quality and profitability … … while continuing to pioneer Address quality defects SWT-3.3-130 • Zero defect program launched • Improving manufacturing processes • Main bearings and blades issues addressed with dedicated
Slide 13: Increasingly bullish on both onshore and offshore market
Increasingly bullish on both onshore and offshore market; one-off quality issues affected bottom-line Financials (Wind Power incl. Service) Divisional market Orders Revenue Wind annual installations, 2013-2023, in GW in €bn +13%1) +3%1) OF: +20% 1) 1) 6.9 7.8 5.4 5.6 ON: +6% 51 54 52 55 57 46 51 47
Slide 14: Delivering sustainable performance
Randy Zwirn | Power Generation Services CEO Delivering sustainable performance Siemens Capital Market Day | Berlin, December 9, 2014 © Siemens AG 2014
Slide 15: Notes and forward-looking statements
Notes and forward-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 “expect,” “look forw
Slide 16: Power Generation Services: A solid business model for a steady highly profitable revenue
Power Generation Services: A solid business model for a steady highly profitable revenue FY 2014: 16,700 employees | €29bn backlog | 3 Business Units | 6 regional headquarters PS PG PS DGC PS WP • 8,500 employees • 4,500 employees • 3,300 employees • Large gas turbines, large steam • Small gas turbi
Slide 17: Fleet growth and revenue diversification drive service's continued performance
Fleet growth and revenue diversification drive service’s continued performance Backlog and fleet (organic growth) Revenue diversification Backlog FY 2014 revenue split in €bn Middle East, Asia Pacific By region Africa +13% 15% 1) 16% 1) 25.4 28.8 29% 28% USA Europe 12% FY 2013 FY 2014 Rest of Americ
Slide 18: Top innovations making fleet even more valuable for our customers
Top innovations making fleet even more valuable for our customers Laser sintering Data analytics Structured data Unstructured data Starts 0 500 1,000 1,500 2,000 1.02 GT Efficiency 1.00 0.98 Non-obvious 0.96 correlations 0.94 0.92 Advanced Mature Repair lead time (weeks) Repair cost 44 -91% -30% 4 B
Slide 19: Other R&D focus to optimize the fleet
Other R&D focus to optimize the fleet Power output Availability Flexibility Gas turbine wet compression High-wind ride through Power train flex-power • Siemens patented technology • Adjust pitch to react to • Increase flexibility with no • 22 MW increase high-wind impact on life or reliability in pe
Slide 20: Laying the foundation for profitable growth
Ralf Christian, Jan Mrosik | Energy Management CEOs Laying the foundation for profitable growth Siemens Capital Market Day | Berlin, December 9, 2014 © Siemens AG 2014
Slide 21: Notes and forward-looking statements
Notes and forward-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 “expect,” “look forw
Slide 22: Unique and comprehensive approach to customers
Unique and comprehensive approach to customers Power TSOs DSOs/ Decentral Oil & Indus- Infrastr. Energy Management FY 2014 genera- Muni. genera- Gas try & Cons- tion tion truction • €10.7bn revenue • ~50,000 employees • Three Divisions combined with one face to the customer Digitali- Smart Grid Solu
Slide 23: Creating value based on strong growth drivers and clear priorities
Creating value based on strong growth drivers and clear priorities Market Key priorities ~ 4% CAGR ~ 0% Digitalization ~6% Fix & • Strengthen project execution Automation ~4-5% optimize • Improve profitability of product business Electrification ~3% FY 2013 FY 2014 FY 2020e Broaden • Strengthened go
Slide 24: Comprehensive portfolio
Comprehensive portfolio Power generation TSOs DSOs/Muni. Decentral generation Oil & Gas Industry Infrastr. & Construction Digitalization: Services & security Software/IT Grid control Big data analytics Grid application Automation, communication, protection & field devices Protection Automation Power
Slide 25: Powerful channel management as key growth lever
Powerful channel management as key growth lever End customers Power TSOs DSOs/ Decentral Oil & Gas Industry Infrastr. & generation Muni. generation Construction Channels Dedicated SW/IT sales Direct sales and Agents EPCs/Contractors OEMs/Panelbuilders Distributors Aligned go-to-market Portfolio Smar
Slide 26: Proof points for value
Proof points for value Examples Oil & Gas Data center Smart substation • Dedicated sales and account • Joint exploitation with Siemens BT • Dedicated utility sales with a clear managers with multi layer sales end-to-end value proposition • Totally Integrated Power (TIP) – approach Power distribution
Slide 27: Financials
Financials Financials Orders Revenue in €bn in €bn +3%1) -4%1) 11.4 11.2 11.7 10.7 FY 2013 FY 2014 FY 2013 FY 2014 Profit and margin Free Cash Flow in €m in €m 254 226 2.2% -0.8% -86 -105 FY 2013 FY 2014 FY 2013 FY 2014 x.x% Profit margin as reported 1) Comparable, i.e. adjusted for currency transla
Slide 28: Stage set for profitable growth
Johannes Milde | Building Technologies CEO Stage set for profitable growth Siemens Capital Market Day | Berlin, December 9, 2014 © Siemens AG 2014
Slide 29: Notes and forward-looking statements
Notes and forward-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 “expect,” “look forw
Slide 30: Profit margin plus 260bps – Major innovations
Profit margin plus 260bps – Major innovations Focus on accelerated profitable growth FY 2014: Orders €5.6bn | employees ~27,000 | margin target: 8 to 11% Products & #2 Solutions & #1 Building A leader systems services performance Energy efficiency and procurement consul- ting and planning Performanc
Slide 31: BT is well positioned and prepared for accelerated profitable growth
BT is well positioned and prepared for accelerated profitable growth BT's excellent position: Innovative technology, application and integration know-how, customer proximity and global presence, moving towards an automation and consulting company with strong technology, leveraging Siemens’ synergies
Slide 32: BT achieved 9.2% profit margin and is well positioned for accelerated growth
BT achieved 9.2% profit margin and is well positioned for accelerated growth in a highly attractive market Financials Divisional market2) Orders Revenue in €bn Building per- • €6bn traditional energy efficiency formance projects/performance contracting -1%1) -1%1) • €1bn new value-added-services: 5.
Slide 33: BT delivered productivity improvement of €450m from FY 2012 to FY 2014
BT delivered productivity improvement of €450m from FY 2012 to FY 2014, as promised in last CMD … Transformation program started FY 2012 Results by FY 2014 Structural measures • Profitability increase of 260bps • Streamlined HQ structures, implemented • Productivity improvement of regional setup,
Slide 34: BT heavily invested in technology and installed base
At the same time, BT heavily invested in technology and installed base Products & systems Solutions & services Management station (Desigo CC) Expertise and installed base • >300 projects sold • Strengthened CoCs for data • Key to efficient operations and centers, energy efficiency, security, energy
Slide 35: BT is building up a new business to optimize enterprise customers' real estate performance
BT is building up a new business to optimize enterprise customers' real estate performance Systematic portfolio development Synergetic business approach NavigatorTM Increase efficiency Drive asset performance BT's new software/service solution is recognized as market leading1) • Efficiency projects
Slide 36: Focus on stability and growth
Jochen Eickholt | Mobility CEO Focus on stability and growth Siemens Capital Market Day | Berlin, December 9, 2014 © Siemens AG 2014
Slide 37: Notes and forward-looking statements
Notes and forward-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 “expect,” “look forw
Slide 38: New Mobility with stable, full scope business at 7.3% profit margin
New Mobility1) with stable, full scope business at 7.3% profit margin Key figures FY 2014: Orders €9.3bn | 25.900 employees | margin target 6 to 9% Turnkey projects Mainline Transport Urban Transport Mobility Management & Electrification • Products and • Urban rail vehicles • Infrastructure • Rail &
Slide 39: Focus on successful milestone execution along project value chain
Focus on successful milestone execution along project value chain contributes to stable performance ICx®: Assembly started • Car body manufacturing and interior assembly started Design • Cars currently being tested • Commissioning to start at beginning of 2015; subsequent homologation planned accord
Slide 40: Active in an attractive market and committed to deliver performance
Active in an attractive market and committed to deliver performance Financials Mobility accessible market2) Orders Revenue Market by business Market by region in €bn in €bn in €bn in €bn -9%1) +18%1) +2.6% +2.6% 9.7 7.2 77 77 Tha- 9.3 Metro 5.8 mes- 3.0 +10%1) 1.6 66 66 Riyadh link +1.2% Rolling 6.7
Slide 41: We deliver on our promises
We deliver on our promises Topic What we said1) What we did RL orders growth above market; RL orders CAGR 5%2); MOL backlog ✓ >€3bn MOL backlog >€7bn; MO book-to-bill ratio >1 Orders/ RL service revenue +10% CAGR RL service revenue >10% CAGR2), ✓ revenue MO service on track for double digit growth R
Slide 42: Vision 2020 builds on operational excellence, accretive growth and digitalization
Vision 2020 builds on operational excellence, accretive growth and digitalization Vision 2020@MO Operational excellence Accretive growth Digitalization Availability … Throughput … Passenger experience … Manu- Homo- Design factu- Testing Delivery logation ring • Reduce non-conformance • Grow accretiv
Slide 43: Digitalization focus on driving customer value through ...
Digitalization focus on driving customer value through ... … Availability … Throughput … Passenger experience • Extensive service/maintenance • Extended operations control • Always connected incl. expertise and outstanding system incl. • Passenger information domain know-how • Conflict resolution an
Slide 44: Digitalization growth fields tap into a fast-growing accretive business
Digitalization growth fields tap into a fast-growing accretive business Business shift toward Proof points already established automation & digitalization MO market development1) • 26 trains for Renfe, Spain Availa- • Flexible maintenance in- bility tervals with 24/7 service Market growth ~7% guaran
Slide 45: From Automation to Digital Enterprise
Anton S. Huber | Digital Factory CEO From Automation to Digital Enterprise Siemens Capital Market Day | Berlin, December 9, 2014 © Siemens AG 2014
Slide 46: Notes and forward-looking statements
Notes and forward-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 “expect,” “look forw
Slide 47: Digital Factory organization: Adapting to a major market trend
Digital Factory organization Adapting to a major market trend Key figures FY 2014: Orders € 9.2bn | Employees 43,100 | Margin target 14 to 20% PLM Software Factory Control Products Motion Control eCar Powertrain Automation Systems Proven software World market leader Products and systems Leading supp
Slide 48: Digital Factory: Solid FY 2014 in a mixed economic environment
Digital Factory Solid FY 2014 in a mixed economic environment Financials Industry Automation Market Orders Revenue in bn Mid-term 8.9 +4%1) 1) 9.2 9.0 +3%1) 1) 9.2 #1 market growth Best automation player +4% FY 2013 FY 2014 FY 2013 FY 2014 Profit and margin Free Cash Flow Industry Software Market in
Slide 49: Key automation systems are still gaining market share
Key automation systems are still gaining market share Installed base SIMATIC PLC Installed base SINUMERIK Systems (cumulated revenue >€30bn) (cumulated revenue >€20bn) SIMATIC SINUMERIK SIMATIC SINUMERIK PLC Systems 1990 1992 2002 2014 1990 1996 2002 2008 2014 © Siemens AG 2014 Page 5 Berlin, Decemb
Slide 50: Industrie 4.0 affects all aspects of the industrial value chain
Industrie 4.0 affects all aspects of the industrial value chain – Siemens focuses on selected domains Global Factory Human Communication Infrastructure Resources Infrastructure Customer Supply Chain Tools Relationship Management & Fixtures Management Enterprise Resource Machinery IT Infrastructure P
Slide 51: "Digital Enterprise" Software Suite
"Digital Enterprise" Software Suite The Siemens answer to Industrie 4.0 requirements Production engineering 1 2 3 Production execution 4 5 Production planning Product design Services Digital Enterprise (Suite of Siemens Industry SW) Key customer requirements (Industrie 4.0) Reducing • Shorter the ti
Slide 52: ITP is using Siemens Industry Software
ITP, a leading company supplying high-tech products for aero-engines, is using Siemens Industry Software Siemens Industry Software enables integrated design, manufacturing and production lifecycles ERP Order scheduling Benefits • Standardization and integration of end-to-end corporate processes • Er
Slide 53: Tap the full potential of process industries
Peter Herweck | Process Industries and Drives CEO Tap the full potential of process industries Siemens Capital Market Day | Berlin, December 9, 2014 © Siemens AG 2014
Slide 54: Notes and forward-looking statements
Notes and forward-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 “expect,” “look forw
Slide 55: Leverage unmatched portfolio on vast installed base
Leverage unmatched portfolio on vast installed base Key figures FY 2014: Orders €9.7bn | 49,500 employees | margin target 8 to 12% Process Automation Large Drives Mechanical Drives Oil & Gas and Marine Plant engineering Motors, drives, inverters Couplings, gear units O&G drive systems, software, dis
Slide 56: Showcase: Automation investment up to €1m
>700 breweries equipped worldwide Showcase: Automation investment up to €1m © Siemens AG 2014 Page 4 Berlin, December 9, 2014 Capital Market Day Vision 2020 | Peter Herweck, PD CEO
Slide 57: Showcase: Average automation investment of €30m
>100 oil rigs equipped worldwide Showcase: Average automation investment of €30m © Siemens AG 2014 Page 5 Berlin, December 9, 2014 Capital Market Day Vision 2020 | Peter Herweck, PD CEO
Slide 58: Low volatility and steady growth
Low volatility and steady growth Financials Divisional market Orders Revenue in €bn in €bn in €bn +3%1) +4%2) 92 -2%1) 9.7 10.0 9.8 9.6 73 30 EMEA FY 2013 FY 2014 FY 2013 FY 2014 26 Profit and margin Free Cash Flow 23 Americas in €m in €m +52% 18 +13% 773 648 732 510 39 Asia 8.0% 30 5.2% FY 2013 FY
Slide 59: Customer value add across the entire lifecycle
Customer value add across the entire lifecycle Focus on proven standard solutions • Software • TIA Oil & Gas Food & Beverage Pharma • IDS • Product lifecycle Trusted services Our tech- partner nological Marine & Water & Glass & Solar platforms Shipbuilding Wastewater are the base for a holistic Tail
Slide 60: CNPC PetroChina Fushun Petrochemical Company, China
CNPC PetroChina Fushun Petrochemical Company, China Challenge Processing capacity of 10 million tons of crude oil and production capacity 1 million tons of ethylene per year Solution Siemens supplied integrated safety and process control solutions for several plants as a main automation vendor • Mai
Slide 61: HGO jacks up its liftboat with Siemens' integrated drive system
HGO jacks up its liftboat with utmost precision, thanks to Siemens' integrated drive system Challenge Siemens delivered the integrated drive system for the world's largest liftboat. With a load capacity of 8,000 metric tons, the liftboat can carry up to seven 6 MW wind turbines as well as all instal
Slide 62: A competitive edge for Siemens
Roland Chalons-Browne | Siemens Financial Services CEO A competitive edge for Siemens Siemens Capital Market Day | Berlin, December 9, 2014 © Siemens AG 2014
Slide 63: Notes and forward-looking statements
Notes and forward-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 “expect,” “look forw
Slide 64: Combining engineering and financing excellence
Combining engineering and financing excellence A competitive edge for Siemens Key Figures FY2014: Assets €22bn | 3,140 employees | RoE target 15 to 20% after tax Financing solutions Example Equity participations demonstrate commitment Gemini: 20% equity in largest to our technology project financed
Slide 65: SFS continued its strategy of profitable, controlled growth
SFS continued its strategy of profitable, controlled growth Financials Financing market development • Financing can support market 24.8 22.6 entry of innovative products RoE after tax 21.9 17.1 18.1 in % and projects Target 15-20% • Demand for larger financing 479 466 transactions increases, e.g., 4
Slide 66: Strategic cornerstones: SFS' strategy combines industrial with financial logic
Strategic cornerstones SFS' strategy combines industrial with financial logic 1 Support other Divisions‘ sales • Leverage balance sheet strength to finance Siemens projects and products • Enable new business models such as pay-for- performance (e.g., payback by energy savings) • Signal confidence by
Slide 67: SFS supports Siemens Divisions with a variety of financing products
Examples: SFS supports Siemens Divisions with a variety of financing products • Key offshore project for division Wind Power and Gemini Renewables with a total project size of 600 MW Wind Project • At €2.8bn of equity and debt, it is the largest-ever project financing to date for an offshore wind fa
Slide 68: SFS supports Siemens Divisions with a variety of financing products
Examples: SFS supports Siemens Divisions with a variety of financing products • Key Division Healthcare client requiring financing for ALB Fils future investments in machinery Kliniken Healthcare • Leasing agreement for the entire ultrasound equipment park Leasing • 8 year flat rate with guaranteed