Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Morgan Stanley Industrial Summit 2013
23 slides from Siemens Aktiengesellschaft's conference presentation, May 30, 2013
Slide 1: SIEMENS in China – More than a 'BRIC - Fashion'
Joe Kaeser, CFO & Member of the Managing Board SIEMENS in China – More than a 'BRIC - Fashion' Morgan Stanley Industrial Summit Beijing, May 30, 2013 Restricted © Siemens AG 2013. All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement 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 “expects,” “looks forward to,” “an
Slide 3: Why to buy Siemens?
Why to buy Siemens? Demographic Climate change Urbanization Globalization change Attractive markets driven by megatrends Siemens is strong in markets with secular growth dynamics (examples) Energy Infrastructure & Cities Industry Healthcare • Efficient, clean power • Lasting energy savings • Integra
Slide 4: Significant local investments drive value creation in Emerging Markets
Significant local investments drive value creation in Emerging Markets Siemens in EM1) Revenue in €bn +18% Russia 21.8 25.7 Middle East 5.0 1.6 3,000 FY 2010 FY 2012 7,700 Employees China +20% 30,600 85k 102k Brazil 6.3 India FY 2010 FY 2012 9,400 Emerging Markets (FY 2012) 1.9 Revenue (in €bn) 19,0
Slide 5: 'Second Wave' of Emerging Economies offer huge opportunities for Siemens
'Second Wave' of Emerging Economies offer huge opportunities for Siemens 9 Emerging Economies build the 'Second Wave' Revenue (in € bn) +22% 3.5 4.2 Poland Turkey FY 2010 FY 2012 Mexico Vietnam Thailand Employees Colombia Indonesia +15% Chile ~20,900 South Africa ~18,100 FY 2010 FY 2012 Developed Ma
Slide 6: Economic development of nations usually evolves in stages
Economic development of nations usually evolves in stages ... from basic needs to societal aspiration Changing demand Developed Markets Emerging Markets Demand for standard of Industrialization living Infrastructure Healthcare build up Environment Energy Sustainability China demand Vietnam Ind
Slide 7: Siemens is an established industrial partner in China
Siemens is an established industrial partner in China Siemens China key facts in FY 12 • Total revenue of €6.3bn, thereof • 44% Industry • 21% Energy • 18% Healthcare • 17% Infrastructure & Cities • 73 Joint Ventures & wholly owned Mr. Loescher co-chairs the China Development Forum and meets Premier
Slide 8: With China's leadership transition completed, we expect reliable execution on the 12th Five Year Plan
With China's leadership transition completed, we expect reliable execution on the 12th Five Year Plan Recent Key Developments Examples of Siemens leadership positions Gas Power China Leader- Generation • Shift towards market-driven economy affirmed ship transition • Shift from quantity to quality GD
Slide 9: Siemens is perfectly positioned for effective energy management in China
Siemens is perfectly positioned for effective energy management in China Power Generation Transmission / Distribution • #1 in Gas turbines with 43% market share over the last 3 years • Partnership with SEC (Cold parts in Gas minority JV SEPG1), blades and • Improved competitiveness Turbine vanes in
Slide 10: Rail Systems has been the Pioneer of transforming 'Global to local'
Rail Systems has been the Pioneer of transforming 'Global to local' into 'Local for Global' in China RAIL We contributed effectively to changing market dynamics Recent Success Stories • Successful roll-out of prototype of Expansion of Local China Portfolio CRH 3G in 02/2013 • Developing CRH 3G for h
Slide 11: Siemens Industry Sector is leading the way for advanced manufacturing in China
Siemens Industry Sector is leading the way for advanced manufacturing in China ADVANCED MANUFACTURING Pushing to new levels of productivity, efficiency and product quality in China within Siemens … … and for our customers Example: Example: Chengdu Digital Factory COMAC C919 large civil airplane Ambe
Slide 12: Local-for-local portfolio and local presence fuel strong growth in China
Portfolio and local presence fuel strong growth in China HEALTHCARE Government health expenditure Footprint in China Healthcare offerings in China in China Health expenditure in % of GDP • Highly competitive Somatom Definition Magnetom Health expenditure (in billion RMB) in entry-level market Flash
Slide 13: Our local R&D hubs are a backbone of global product developments
Our local R&D hubs are a backbone of global product developments and create valuable IPR in China 17 R&D hubs… … develop new products for all Sectors Xi'an (1) Beijing (2) Yizheng (1) Multix Select DR Multix Fusion Luminos Select Luminos Fusion FD (VA20/30) Wuxi (1) Nanjing (2) Suzhou(1) Hangzhou (1
Slide 14: Our Five Priorities for continued success in China
Our Five Priorities for continued success in China • Close strategic and operational alignment to China’s priorities • Further localization of the entire value chain (Product Management, R&D, Supply chain) for locally designed and marketed products • Enable China’s high-end manufacturing expertise a
Slide 15: Thank you for your attention – your questions, please!
Questions and Answers Thank you for your attention – your questions, please! © Siemens AG 2013. All rights reserved. Page 15 Beijing, May 30, 2013 Morgan Stanley Industrial Summit
Slide 16: Financial calendar
Financial calendar May May 27 – 30, 2013 Asia Roadshow Morgan Stanley China Conference (Beijing) June 13, 2013 June JP Morgan Conference (London) June 14, 2013 Exane Conference (Paris) June 24 – Early July Osram Roadshow July 2013 July Listing Osram © Siemens AG 2013. All rights reserved. Page 16 Be
Slide 17: Siemens Investor Relations contact data
Siemens Investor Relations contact data Mariel von Drathen +49-89-636-33780 Munich Office +49-89-636-32474 Fax: +49-89-636-32830 Internet: http://www.siemens.com/investorrelations Email: investorrelations@siemens.com © Siemens AG 2013. All rights reserved. Page 17 Beijing, May 30, 2013 Morgan Stanle
Slide 18: One Siemens financial framework sets the aspiration
One Siemens financial framework sets the aspiration One Siemens The integrated technology company Financial target system Siemens Outperforming Capital efficiency Capital structure revenue growth ROCE (cont. ops.)1) Adjusted industrial net debt / Growth (nominal) > EBITDA most relevant competitors 1
Slide 19: Incremental savings of ~€300m targeted to compensate for more conservative growth expectation
Incremental savings of ~€300m targeted to compensate for adverse effect from more conservative growth expectation Total Sector Profit Margin (% revenue) ≥ 12.0% +280bps 9.2%1) Modest 2.5 - 3% growth p.a. pricing pressure Profit Volume/ Price Cost Gross Profit Target 2012 Degression Erosion Inflation
Slide 20: Key enabler 'Cost reduction' and 'Focus on core activities'
Key enabler 'Cost reduction' and 'Focus on core activities' with the highest impact expected ~ €3bn in procurement e.g. by stepping up design-to-cost effectiveness and material productivity of operational key processes (Engineering, Development and Manufacturing) Cost by further integration of SCM
Slide 21: Assumptions and goals for 'Siemens 2014' cascaded into the Sectors
Assumptions and goals for 'Siemens 2014’ are aligned and cascaded down into the Sectors Sector Energy Sector Industry €bn ≥ 12.0% €bn ~50 bps +510 bps ≥ 14.0% +150 bps ≥ 13.5% 6.9%1) 12.0% 3.3 Exit Solar 1.1 Exit Water Techno- 7.8%2) logies Integrate 3 – 3.5% p. a. < 1% p. a. LMS Profit Volume/ Pric
Slide 22: Outlook
Outlook • In fiscal 2013, Siemens is implementing 'Siemens 2014', a company-wide program supporting our One Siemens framework for sustainable value creation. • The goal of the program is to raise our Total Sectors profit margin to at least 12% by fiscal 2014. • For fiscal 2013, we confirm our expect
Slide 23: 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. Orders and order backlog; adjusted or organic growth rates of revenue and orders; book-to-bill ratio; Total Sectors profit; return on equity (af