Slide 1: Strong growth and underlying profit in third quarter
Strong growth and underlying profit in third quarter Peter Löscher, President and CEO Q3 FY 11 Analyst call July 28, 2011 Page 1 Q3 FY 2011, Analyst Call, July 28, 2011 Copyright © Siemens AG 2011. All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,”
Slide 3: Key takeaways
Key takeaways Solid operational Q3 performance… Significant order growth in Industry boosted by ICx Clear revenue increase led by emerging markets and continued double digit revenue growth trend of short cycle Industry Early cycle businesses in Industry and Fossil drive underlying profit impro
Slide 4: Profitability strongly impacted by extraordinary effects
Profitability strongly impacted by extraordinary effects Siemens (continuing operations), in €m Q3 FY 101) Q3 FY 11 Change New orders 19,179 22,937 25%2) Revenue 17,425 17,844 8%2) Book-to-bill 1.10x 1.29x Profit Total Sectors 2,067 1,1443) -45% Income from continuing operations 1,428 7633) -47% Bas
Slide 5: Continued strong revenue growth in Americas and China
Continued strong revenue growth in Americas and China Regional business split Major order wins in Q3 Industry: Q3 FY11 Order growth y-o-y1) ICx contract – base contract for 130 high- Europe/C.I.S./Africa/ME +34% speed trains (order value €3.7bn) (therein Germany) +99% Signaling and communication
Slide 6: Divisions with a mixed performance
Divisions with a mixed performance Q3 FY11 Orders Revenue Profit Development of Divisions y-o-y1) y-o-y1) margin IA and DT – Continued strong growth due to Siemens 25% 8% robust industrial demand and earnings Industry 58% 11% 10.8% conversion Industry Automation 7% 19% 18.7% BT – Ongoing recover
Slide 7: Targeted investments in organic and exogenous growth
Targeted investments in organic and exogenous growth SG&A expenses Acquisitions / Joint ventures in 2010 and 2011 €bn Marketing & Sales 28 Transactions (~ ½ acquisitions, ~ ½ new in % of revenue General Administration and share increases in existing JV‘s) 6.9 7.5 11.3% Total investment in FY10 &
Slide 8: Current macro environment still robust while expectations become more cautious
Current macro environment still robust while expectations become more cautious Purchasing Managers Index Capacity Utilization Rates Index US ISM Eurozone Manuf. PMI Germany Euro Area US 65 In % Expanding economy 90 60 55.3 87% 55 85 50 52.0 81% 80 45 75 77% Contracting economy 40 70 35 65 30 97 98 9
Slide 9: Thank you for your attention – your questions, please!
Questions and Answers Thank you for your attention – your questions, please! Page 9 Q3 FY 2011, Analyst Call, July 28, 2011 Copyright © Siemens AG 2011. All rights reserved.
Slide 10: Appendix
Appendix Page 10 Q3 FY 2011, Analyst Call, July 28, 2011 Copyright © Siemens AG 2011. All rights reserved.
Slide 11: One Siemens cockpit
One Siemens cockpit Financial target system Growth (nominal) Margins compared to industry benchmarks New orders Revenue EBITDA Margins (YTD FY11) €bn +23% +7% Industry 13.2% 10-15% 64.4 52.5 49.6 53.2 Energy 15.0% 10-15% Healthcare 14.3% 15-20% YTD FY10 YTD FY11 YTD FY10 YTD FY11 EBITDA margins of r
Slide 12: Outlook 2011
Outlook 2011 We expect organic order intake to show a significant increase compared to fiscal 2010. Supported also by our already strong order backlog, we expect mid- single-digit organic revenue growth in fiscal 2011. Income from continuing operations to be at least €7.5 billion. This outlook
Slide 13: Financial calendar
Financial calendar July July 28, 2011 Q3 financial report and analyst conference call August August 2 - 4, 2011 Canada and US Roadshow (Toronto, Los Angeles, San Francisco) September Page 13 Q3 FY 2011, Analyst Call, July 28, 2011 Copyright © Siemens AG 2011. All rights reserved.
Slide 14: Siemens investor relations contact data
Siemens investor relations contact data Mariel von Drathen +49-89-636-33780 Munich Office +49-89-636-32474 Internet: http://www.siemens.com/investorrelations Email: investorrelations@siemens.com Fax: +49-89-636-32830 Page 14 Q3 FY 2011, Analyst Call, July 28, 2011 Copyright © Siemens AG 2011. All ri
Slide 15: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) To supplement Siemens’ Consolidated Financial Statements presented in accordance with International Financial Reporting Standards, or IFRS, Siemens presents the following supplemental financial measures: New orders and order backlog; Adjus
Slide 16: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) New orders and order backlog (continued) Order backlog represents an indicator for the future revenues of our Company resulting from already recognized new orders. Order backlog is calculated by adding the new orders of the current fiscal yea
Slide 17: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Return on equity (after tax), or ROE (after tax) In line with common practice in the financial services industry, Financial Services, or SFS uses return on equity (after tax), or ROE (after tax), as one of its key (after tax) profitability m
Slide 18: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) Free cash flow and cash conversion rate Siemens defines Free cash flow as Net cash provided by (used in) operating activities less Additions to intangible assets and property, plant and equipment. The IFRS financial measure most directly comp
Slide 19: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Adjusted EBITDA margins at the Sector level Siemens defines adjusted EBITDA margins on the Sector level as the ratio of adjusted EBITDA to revenue (as presented in the “Notes to Consolidated Financial Statements”). Siemens intends to maintain
Slide 20: Reconciliation and Definitions for Non-GAAP Measures (VI)
Reconciliation and Definitions for Non-GAAP Measures (VI) Limitations on the usefulness of Siemens’ supplemental financial measures The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular: With respect to new orders and order backlog