Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2007)
18 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 21, 2007
Slide 1: Industrial Solutions and Services – Capital Market Days 2007
Industrial Solutions and Services – Jørgen Ole Haslestad, Group President Capital Market Days 2007 June 21-22, Berlin
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words as “expects”, ”looks forward to”, “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will” or wor
Slide 3: I&S holds a leading position in all businesses
I&S holds a leading position in all businesses I&S Industry Infrastructure Metals Oil, Gas, Industrial Water Intelligent Infrastructure Technologies Marine Services Technologies Traffic Logistics Solutions Systems MT OGM IS WT ITS IL Market Position No. 1 No. 2 No. 1 No. 1 No. 1 No. 1 Market Volume*
Slide 4: We have been growing two times faster than the market
We have been growing two times faster than the market Market +11% p.a. through organic growth Group Sales in € bn Growth 10 p.a. Strongest overall growth in NME (+155%), CIS (+76%) and +43% p.a. Asia/Pacific (+48%) +4.8% Regional split of sales (FY 06): 50% Europe/CIS 30% Americas +6.4%
Slide 5: Profit has grown faster than sales
Profit has grown faster than sales Group Profit Group Profit Implementation of efficient and in € m Margin in % binding business processes 350 +74% p.a. worldwide Target Margin FY 07 will be Standardization of products 3.3% achieved and solutions 2.6% Change in business mix: Successful integ
Slide 6: Profitability improvement and low capital employed drive ROCE
Profitability improvement and low capital employed drive ROCE I&S is a solution provider with a ROCE (%) Average NCE (€ bn) relatively low capital employed (€ 1.6bn FY06) and an attractive 30 1.8 ROCE We have improved our ROCE driven by Excellent cash and asset management (e.g. increased advan
Slide 7: Cash Conversion Rate > 1 over the last three years
Cash Conversion Rate > 1 over the last three years FCF (€ m) CCR Stringent asset management to increase free cash flow 350 Tight NWC management (e.g. contract management, procurement, processing) Binding asset targets with all regional companies 1 Stringent frame for capex and R&D FY 04 FY 0
Slide 8: Products and services are the key profit drivers
Products and services are the key profit drivers I&S Order Structure FY 06 Market Characteristics Market Opportunity No mass market for High demand for total our sector-specific products solutions from our end End customer contacts customers (engineering Services through solutions 25% and plan
Slide 9: Europe and USA primarily modernization and service business, new plants in emerging markets
Europe and USA primarily modernization and service business, new plants in emerging markets I&S Order Intake / Employees FY 06 OI: € 4.1bn Europe Emp.: 21,400 Americas w/o CIS South America OI: € 0.5bn Emp.: 200 OI: € 2.2bn Emp.: 8,700 Africa/NME Asia/Pacific OI: € 0.4bn Emp.: 1,000 OI: € 1.5bn Emp.
Slide 10: Modernization and service business will drive industry growth
Modernization and service business will drive industry growth Sustained Growth: 2 x GDP Growth FY 06 FY 07 FY 08 FY 09 FY 10 I&S Order Income split Size: > € 2.5m 40% Runtime: 20 – 36 months New Plants/ Order Revamps 45% Backlog Size: € 0.25m – 2.5m 32% Runtime: 3 – 12 months Modernization Order 30%
Slide 11: Industry: We optimize steel plants across the whole lifetime (20–30 years)
Industry: We optimize steel plants across the whole lifetime (20–30 years) SmartCrown MULPIC Plate Mill Patented SmartCrown roll Used to control material Production capacity: contour allows flatness microstructure and defects to be corrected enhance plate properties up to 2 million tons per year i
Slide 12: Infrastructure: Total solutions in the REMA project for Swiss Post
Infrastructure: Our total solutions in the REMA project enable Swiss Post to reduce costs and increase service quality Automated Storage Parcel Sorter Sorting Center Zurich and Retrieval System Flexible and efficient Most modern sorting Intermediate tray storage packet sorting between sorting proc
Slide 13: Infrastructure: London City Toll – getting London moving
Infrastructure: London City Toll – getting London moving London City Toll 15% (60,000 cars) reduction in the number of cars in the city Smoother traffic flow Significant reduction in air and Intelligent noise pollution Traffic Control Center Cameras (Low Emission Zone) 50–60% of car drivers
Slide 14: Profitable growth through services and plant products
Profitable growth through services and plant products ROCE EBIT Value Add Moderni- Value Add zation Service Own Manu- Standard Solutions facturing products Slide 14 June 2007 Capital Market Days 2007
Slide 15: Portfolio, Innovation, Profitability priorities
People Portfolio Excellence Develop talent globally Build on our strengths in Strengthen leadership Energy & Environmental development People Care Attain high performance Portfolio Automation & Control, Excellence culture Industrial & Public Strengthen expert careers Infrastructures Pe
Slide 16: I&S commitment
I&S commitment to Sustain growth above market growth 3 Achieve new target margin range of 5–7 % 3 Attain Cash Conversion Rate of 1 - Growth Rate 3 Clear roadmap in place to increase ROCE 3 Slide 16 June 2007 Capital Market Days 2007
Slide 17: Reconciliations and definitions
Reconciliations and definitions ”Group profit from Operations” is reconciled to ”Income before income taxes” of Operations under ”Reconciliation to financial statements” on the table ”Segment information.” See ”Financial Publications/Quarterly Reports, FY07 Q2, Financial Statements” at our Investor
Slide 18: Siemens Investor Relations Team
Siemens Investor Relations Team Marcus Desimoni +49-89-636-32445 Roland Bischofberger +49-89-636-36165 Florian Flossmann +49-89-636-34095 Irina Pchelova +49-89-636-33693 Christof Schwab +49-89-636-32677 Susanne Wölfinger +49-89-636-30639 Webpage: http://www.siemens.com/investorrelations e-mail: inve