Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2021)
38 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 24, 2021
Slide 1: Smart Infrastructure
Smart Infrastructure Matthias Rebellius, CEO Axel Meier, CFO Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 2: Notes and forward-looking statements
Notes and forward-looking statements This document contains statements related to our future business and incorrect, actual results, performance or achievements of Siemens financial performance and future events or developments involving may (negatively or positively) vary materially from those desc
Slide 3: Market drivers: smart infrastructure is sustainable infrastructure
Market drivers: smart infrastructure is sustainable infrastructure • Changing from fossil • Creating communities fuels (~80% today) to that adapt to people’s needs renewable energy for health, comfort and productivity • Moving to an all-electric world, • Making buildings more human-centric growing e
Slide 4: Our markets: electrification, buildings, and electrical products
Our markets: electrification, buildings, and electrical products ~€185bn Infrastructure market¹ ~3% Compound annual growth rate 1 €187bn according to Siemens common market model Page 4 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 5: Market split: growth pockets of digitalization and grid edge
Market split: growth pockets of digitalization and grid edge Portfolio mix – in billion € 221 CAGR +3% 187 Digitalization CAGR >10% Grid edge1 CAGR +10% 117 Buildings CAGR +3% Electrification CAGR +4% 37 Electrical 33 Products CAGR +3% 2020 2025 Source: Siemens common market model based on market an
Slide 6: Market split: Geographical
Market split Geographical – in billion € Trends 221 CAGR +3% 187 Europe, CIS1, MEA 60 CAGR +3% Americas CAGR +3% 69 Asia, Australia 58 CAGR +4% 2020 2025 Source: Siemens common market model based on market analysts data 1 Commonwealth of Independent States Page 6 Unrestricted | © Siemens 2021 | Capi
Slide 7: Global governmental recovery programs accelerate green and digital transformation
Global governmental recovery programs accelerate green and digital transformation – Smart Infrastructure can play an essential role “EU Recovery Plan” (€1.8tn) – incl “Next Generation EU” (€750bn) stimulus • Efficient buildings, industrial decarbonization, Smart Cities, eCharging infrastructure, hyd
Slide 8: Smart Infrastructure Key figures FY
Smart Infrastructure Key figures FY 20 €14.7bn €14.3bn 9.1% ~69,600 Orders Revenue Profit margin Employees Page 8 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 9: Smart Infrastructure Portfolio
Smart Infrastructure Portfolio • Grid simulation, operation and • Integrated building management • Low-voltage switching, measuring control software systems and software and control equipment • Substation automation and protection • Heating, ventilation & air conditioning • Low-voltage distribution
Slide 10: Leading technology in smart electrification, smart buildings and electrical products
Leading technology in smart electrification, smart buildings and electrical products Electrification Buildings Energy market solutions Microgrid Virtual Digital services power plant Demand flexibility Load- generation Software Grid edge Equipment and balancing products Electrical vehicle Energy moni
Slide 11: Revenue split
Revenue split FY 20 – in percent – €14.3bn 15% 49% 27% 47% 18% 57% 45% 34% Asia, Australia Europe, Electrification Buildings Utilities Buildings and Systems, Products CIS1, MEA Campuses Solutions and Software Geographical Portfolio mix2 Customer mix Business mix3 26% 36% Electrical 25% 21% Americas
Slide 12: Strong technology core and cross-business collaboration for accelerated customer value
Siemens with strong technology core and cross-business collaboration for accelerated customer value Digital Smart Mobility Industries Infrastructure • Load management of e-mobility charging with Stromnetz Hamburg based on neural network technology (AI) Cyber Security • Development of building operat
Slide 13: Examples of value creation: A leader in smart electrification
Examples of value creation: A leader in smart electrification Key data The energy transition leads to more renewable energy supply and accelerated electrification in medium-voltage gas DER¹ additional capacity is growing by a factor of 7 by 2030, grids are insulated switchgear (GIS), aging and less
Slide 14: Electrifying a city for the future
Electrifying a city for the future Siemens supports a number of key stakeholders with their green ambitions: Hamburg will have 50,000 electric and hybrid cars by 2024, which need to be supported by the secondary distribution grid and require charging infrastructure. • Pilot project for smart grid so
Slide 15: Examples of value creation: Resilient building services
Examples of value creation: Resilient building services Key data Sustainable communities call for livable cities and energy efficient, human-centric buildings revenues from services Buildings need to reduce emissions and adjust to user needs, while reducing lifecycle costs and managing increasing IT
Slide 16: Taking services to the next level with digitalization
Taking services to the next level with digitalization SMU is a private university in Dallas, Texas, comprising 131 buildings on 234 acres with nearly 12,000 students. As a trusted advisor, Siemens supports the university in modernizing the campus-wide building automation and optimizing the building
Slide 17: Examples of value creation: Higher margin contribution from innovative Electrical Products
Examples of value creation: Higher margin contribution from innovative Electrical Products The transition to resilient and flexible grids and the development Key data of efficient and responsive buildings requires high-quality, reliable electrical products Increased energy and asset efficiency and r
Slide 18: Ensuring reliable power with a strong partnership and product excellence
Ensuring reliable power with a strong partnership and product excellence The city of Hangzhou, China, has extended its metro network with ten new lines and 300 km of rail network, ready for the city to host the 19th Asian Games in 2022. Its 230 metro stations require a reliable power supply, confine
Slide 19: Addressing value drivers: growth, resilient service revenue, profitability and cash conversion
On the CFO’s agenda • Delivering on CMD 2019 commitments for FY 21 and beyond Addressing value drivers: • Improving profitability and closing growth, resilient service the gap to competition with strong execution of competitiveness program revenue, profitability and • Stringent capital allocation to
Slide 20: On track to deliver CMD 2019 commitments
On track to deliver CMD 2019 commitments CMD19 commitments Status H1 FY 21 Guidance FY 21 Top line 4-5%¹ annual +5.3%² 5–7% growth 11–13% 13–15% Profit by 2021 by 2023 margin 11.1% 11–12% Cash 1-growth conversion 0.88 1-growth seasonality rate 1 Based on market growth of ~3% CAGR FY 18–24 2 Comparab
Slide 21: Strong H1 performance in volume growth and margin expansion
Strong H1 performance in volume growth and margin expansion In €bn In €m In €m +8.9%¹ +68% +129% 7.6 7.8 781 685 466 299 H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21 In €bn In percent +5.3%¹ +450bps² 15 +0.24 7.0 7.0 10 0.88 11.1 0.64 6.6 H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 2
Slide 22: Competitiveness program delivers
Competitiveness program delivers Continuously increasing ambitions Cumulative savings in million € Cumulative savings in million € 520 400 ~75% 300 Cost out 200 ~25% Business mix1 By FY 21 By FY 23 By FY 21 By FY 23 1 Business mix, mainly consists of portfolio measures as well as sales and pricing m
Slide 23: Commitment for Capital Market Day 2021: Competitiveness program
Commitment for Capital Market Day 2021 Competitiveness program Continued execution and acceleration: Commitment increased to €520m by FY 23 Page 23 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 24: Business mix moving from program to process
Business mix moving from program to process Business mix axis includes step-change approach to further • Review of €2bn of SI portfolio Targets on top of base productivity streamline portfolio with an completed increased scope, expanding digital services, improving sales • Exited €700m non-synergeti
Slide 25: Product & system business on track
Product & system business on track Optimize manufacturing and • Reduced number of R&D footprint via consolidation, production sites by 25%, Targets on top of base productivity outsourcing & partnering; from 79 to 59 reducing procurement costs • Shifting focus towards through material standardization
Slide 26: Lean setup exceeding initial commitment
Lean setup exceeding initial commitment Continued implementation of • 2,200 jobs identified for job standardization, automation, transfer or reduction Targets on top of base productivity bundling and relocation; • 550 already moved – lean set-up for regional support plans in place for remainder 80 f
Slide 27: Smart Infrastructure Financial commitments
Smart Infrastructure Financial commitments Targets over 3–5 year cycle 4–6% 6–9% 11–16% 1-growth Comparable Resilient service Profit margin Cash conversion revenue growth revenue growth p.a. rate (CCR) Page 27 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 28: Enabling the digital transformation of infrastructure
Enabling the digital transformation of infrastructure – moving towards increasingly autonomous grids and buildings Key data • Managing the complexity from the energy transition and ensuring reliability and resilience • Grid digital twin to resolve today’s data siloes in processes, digital applicatio
Slide 29: Digital twin as the single source of truth
Digital twin as the single source of truth Deep domain know-how, broad software portfolio, bold ambitions – Virtuous circle of core business and digital business amplify each other. COMPANY CORE COMPANY CORE TECHNOLOGY TECHNOLOGY Data Simulation Analytics & Digital & AI Twin Page 29 Unrestricted | ©
Slide 30: Pioneering the digital twin approach in grids
Pioneering the digital twin approach in grids AEP, the largest electricity transmission network in the U.S., faces challenges creating reliable models of its network as complexity increases. AEP also needs to coordinate transmission planning and control with three regional transmission operators. •
Slide 31: Pioneering the digital twin approach in buildings
Pioneering the digital twin approach in buildings Hospital group Insel Gruppe AG in Switzerland operates a complex campus of hospitals. Maintaining the overview and ensuring efficient building operation is of the essence, however, currently data gaps lead to inefficiency in operation and project del
Slide 32: Strong contribution to Siemens' ESG framework
Strong contribution to Siemens’ ESG framework: Supporting customers’ decarbonization efforts to achieve net zero targets Key data that drive electrification to ensure operations with low CO₂ emissions and reduced energy consumption – enabled by attractive financing schemes of SI revenues from our En
Slide 33: Partnership to digitally enhance existing factories
Partnership to digitally enhance existing factories Mercedes-Benz and Siemens are working together on the sustainable digitalization and automation of the automotive industry. Smart Infrastructure and Digital Industries know-how will help Mercedes turn its plant in Berlin into a campus for developin
Slide 34: Microgrid system supports community's green ambitions on Terceira Island
Microgrid system supports community’s green ambitions on Terceira Island Utility company EDA is increasing its share of renewables in the energy mix, while the rising demand from e-cars and higher load fluctuations from more prosumers challenge grid stability. Goal is to lower costs and reduce relia
Slide 35: Energy autonomy with an optimized low-carbon microgrid
Energy autonomy with an optimized low-carbon microgrid The native American reservation of Blue Lake Rancheria in California wants a low-carbon microgrid for its critical infrastructure that is capable of running for up to a week without access to the public grid. • Advanced software control solution
Slide 36: Why we are uniquely positioned to address our customers' needs
Why we are uniquely positioned to address our customers’ needs Active service customers 1 Installed base (systems under service agreements) Service business 2 Service technicians in 300 locations around the globe Portfolio renewal in last 5 years in Electrical Products 3 Greenhouse gas emissions fro
Slide 37: Our team
Our team Matthias Rebellius Dave Hopping Sabine Erlinghagen Robert Klaffus Stephan May Andreas Matthe Henning Sandfort CEO Regional Solutions Digital Grid Digital Grid Distribution Systems Electrical Products Building Products and Services Software Automation Axel Meier Markus Mildner Thomas Kiessli
Slide 38: Summary
Summary Smart infrastructure is sustainable infrastructure – strong contribution to ESG, enabling the energy transition and creating sustainable communities Innovative technology leadership across electrification, buildings and electrical products A resilient business mix of products, services, and