Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Bernstein Strategic Decisions Conference 2015
23 slides from Siemens Aktiengesellschaft's conference presentation, May 27, 2015
Slide 1: Disciplined execution of Vision 2020
Joe Kaeser, President and CEO Disciplined execution of Vision 2020 Bernstein Strategic Decisions Conference New York, May 27, 2015 © Siemens AG 2015
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
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
Slide 4: 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
Slide 5: 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
Slide 6: 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
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
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
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
Slide 10: Appendix
Appendix © Siemens AG 2015 Page 10 New York, May 27, 2015 Bernstein Strategic Decisions Conference
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
Slide 12: Restructuring and operational consolidation in FY 2015 is 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
Slide 13: Oil & Gas exposure still limited - Secondary impact could be higher
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
Slide 14: 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
Slide 15: 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
Slide 16: 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
Slide 17: PG and WP division 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
Slide 18: EM and BT division 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
Slide 19: DF and PD division 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
Slide 20: MO and HC division 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 €
Slide 21: 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 •
Slide 22: Financial calendar
Financial calendar May May 27, 2015 Bernstein Strategic Decisions Conference (New York) May 28, 2015 Canada Roadshow (Toronto) June June 10 J 10, 2015 Exane European CEO Conference (Paris) June 11, 2015 JP M E Morgan European C it l G Capital d C Goods f Conference (L d ) (London) June 17, 2015 Deut
Slide 23: 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 23 New York, May 27, 2015 Bernstein Strategic Decisions Conference
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