Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Citigroup European Industrials Conference 2009
17 slides from Siemens Aktiengesellschaft's conference presentation, Mar 4, 2009
Slide 1: TAP: Focus on Execution – Delivering in Tough Markets
TAP: Focus on Execution – Delivering in Tough Markets Joe Kaeser, CFO Citigroup - European Industrials Conference London, March 4, 2009 Copyright © Siemens AG 2009. 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: Focused on three Sectors with strong end markets
Focused on three Sectors with strong end markets High BUSINESS QUALITY in #1 or #2 positions Attractive markets with Three SECTORS Cross- sectoral tailwind from MEGATRENDS Energy Fossil Power Generation ~€23bn1) Siemens IT Solutions and Services Oil & Gas Demographic Renewable Energy change Transmis
Slide 4: Strong Energy performance covers short cycle businesses weakness in Q1 FY2009
Strong Energy performance covers short cycle businesses weakness in Q1 FY2009 % Change Q1 FY2008 Q1 FY2009 Actual Adjusted1) New orders (Cont. Op.) 24,242 m 22,220 m -8% -7% Sales (Cont. Op.) 18,400 m 19,634 m 7% 8% Profit Total Sectors 1,673 m 2,084 m 20% Income from Cont. Op. 1,078 m 1,260 m 17% N
Slide 5: Financial flexibility – A key element in global financial turmoil
Financial flexibility – A key element in global financial turmoil Funds raised in Q2 FY2009 …at attractive terms €bn bp above mid-swap 4.0 200 158 2.0 2.0 4 yr maturity 8 yr maturity Transforming short term into long term debt Offer heavily oversubscribed Attractive spreads - €4.0bn issued instead o
Slide 6: Strong balance sheet and adequate maturity profile mark a solid financial condition
Strong balance sheet and adequate maturity profile mark a solid financial condition Leverage (total debt / capital1)) in % Strong balance sheet 43% even during recession 38% 37% 35% 36% 35% 34% 32% Conservative financial 29% policy: 2001 2002 2003 2004 2005 2006 2007 2008 Q1 2009 Long-term loan and
Slide 7: Macro indicators still point to a contracting economy
Macro indicators still point to a contracting economy Global GDP growth 2009E 1) ISM Purchasing Manager Index 4 3.5% 3.2% 60 2.9% 2.1% 50.7 48.6 50.0 2 50 38.9 40 0 32.9 -0.5% -1.2% 35.6 30 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Euro-zone Manufacturing PMI IF
Slide 8: Acceleration of adverse business environment call for stringent execution on efficiency programs
Acceleration of adverse business environment call for stringent execution on efficiency programs Energy Healthy order book. Book-to-bill expected to be significantly above 1.0 mostly due to material order intake from Iraq in Q2 FY09 Fossil Power margin in Q1 FY09 benefited ~100-150bps from favorable
Slide 9: Lowering cost base: Capex & timely short time work
Lowering cost base : Capex & timely short time work Capex spending significantly reduced Short cycle business - capacity reductions Total Groups Total Sectors Capacity adjustments at short cycle businesses IA, DT and esp. Osram started Capex / Most contracts for temp workers canceled 140% Depreciati
Slide 10: SG&A net savings of €1.2 bn will be delivered till 2010
SG&A net savings of €1.2 bn will be delivered till 2010 SG&A costs in €bn Margin impact with growth at 2x GDP Percentage of sales 13.6 0.9 170 bp Restructuring charges2) 16.7% 15.0% GDP growth 12.7 15.0%4) = 0% p.a. Portfolio changes 0.8 330 bp 12.13) (e.g. UGS, Diagnostics) 16.7% 13.4% GDP growth 1
Slide 11: Supply Chain efficiency – A key driver for securing 2010 targets
Supply Chain efficiency – A key driver for securing 2010 targets Purchasing volume FY 2008 LCC sourcing FY 2008 LCC Other Sourcing 15% ~20% Healthcare 12% 43% Industry 30% ~80% HCC Sourcing Energy Sectors LCC sourcing share Total purchasing volume ~€40bn Industry: ~22% (not including capex; non-audi
Slide 12: TAP: Consistent execution against plan – On time to first commit!
TAP: Consistent execution against plan – On time to first commit! Reporting dates Milestones (deliverables)1) November 2007 New organization approved Supervisory Board Managing Board incl. Sector CEO approved Sector CFO named December 2007 Division CEO and CFO named January 2008 New target margins f
Slide 13: Thank you for your attention – Your questions, please!
Thank you for your attention – Your questions, please! Page 13 March 4, 2009 Copyright © Siemens AG 2009. 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 US Office +1-408-464-2004 Internet: http://www.siemens.com/investorrelations Email: investorrelations@siemens.com Fax: +49-89-636-32830 Page 14 March 4, 2009 Copyright © Siemens AG 2009. All ri
Slide 15: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) Profit Total Sectors is reconciled to “Income from continuing operations before income taxes” under “Reconciliation to consolidated financial statements” in the table “Segment Information.” See our Financial Publications at our Investor Relati
Slide 16: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) Average Capital employed and average Assets for the fiscal year are calculated as a “five-point average” obtained by averaging Capital employed and Assets at the beginning of the first quarter plus the final figures for all four quarters of t
Slide 17: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Our capital structure target is based on an Adjusted industrial net debt divided by EBITDA (adjusted). For the calculation of Adjusted industrial net debt, we subtract from Net debt (defined as Long-term debt plus Short-term debt and current
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