Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (March 2010)
18 slides from Siemens Aktiengesellschaft's investor day presentation, Mar 26, 2010
Slide 1: Siemens Industry – Industry Solutions Division
Siemens Industry – Industry Solutions Division Jens Wegmann CEO Industry Solutions Division Capital Market Days 'Industry' Munich, March 26, 2010 © Siemens AG 2010. 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: Industry Solutions is a leading solution and service provider for defined industrial vertical markets
Industry Solutions is a leading solution and service provider for defined industrial vertical markets Industry Sector – Industry Solutions Division New Orders: €6.1bn Revenue: €6.8bn Profit: €360m Employees: ~31,000 Metals Technologies Water Technologies Industrial Technologies Market position: #2 M
Slide 4: Dynamics of Industry Solutions' vertical markets have changed significantly
Dynamics of Industry Solutions' vertical markets have changed significantly Mining market development Metals market development 5.4 -45% +5% 28.2 -37% +4% 3.0 17.8 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 Pulp & Paper market development Water market development -26% -2%
Slide 5: Market dynamics have impacted Industry Solutions' performance
Market dynamics have impacted Industry Solutions' performance Fiscal Year First Quarter Achievements €bn Profitability within 8.4 6.1 defined target New margin range Orders 1.9 1.2 2010 SG&A targets 2008 2009 Q1 2009 Q1 2010 achieved in 2009 €bn Strong project 7.1 6.8 Revenue execution 1.8 1.4
Slide 6: Industry Solutions is well underway to dramatically reshape its business
Industry Solutions is well underway to dramatically reshape its business and adjust to the new reality Personnel capacity development Capacity shift to emerging markets -15% Developed Emerging -19% markets markets 33,650 -26% 24,850 6,300 28,750 18,450 27,350 1,400 +17% 10,300 8,800 2008 Capacity Pr
Slide 7: Industry Solutions' future growth is based on clear priorities
Industry Solutions' future growth is based on clear priorities 1 Increase modernization and service business Technology leadership 2 Enhance Environmental Portfolio Accelerate internationalization of water Green 3 business portfolio Shift value-add of metal business to emerging 4 markets Customer 5
Slide 8: Industry Solutions is focused on deepening its value as an industrial lifecycle partner
Industry Solutions is focused on deepening its value as an industrial lifecycle partner We leverage our global footprint and large installed base Revenue share of Service in % Driving force Existing plants more valuable Continuous innovations crucial Customers concentrate on core competencies
Slide 9: Industry Solutions is profiling its ecofriendly solutions
Industry Solutions is profiling its ecofriendly solutions IS combines solutions for energy efficiency, pollution control and water management Revenue share of Environmental Portfolio in % Green solutions for Pulp & Paper: Power optimization and management Reject preparation and utilization Ble
Slide 10: Water market offers strong growth opportunities based on technology leadership
Water market offers strong growth opportunities based on technology leadership Strong International Expansion Strategic focus Revenue CAGR 1 Drive internationalization (International business +35% outside US) 2 Expand service business 3 Achieve technology leadership 2004 2005 2006 2007 2008 2009 No.
Slide 11: Our metals business efforts are focused on modernization, services and emerging markets
Our metals business efforts are focused on modernization, services and emerging markets Complete Metals Solutions Strong order backlog €bn Mining Ironmaking Steel Plants 1.5 4.0 1.5 1.0 Backlog Revenue Revenue Revenue Q1/2010 Q2-Q4 2010 2011 beyond Electrics & Metallurgical Service Mini Mills Automa
Slide 12: Mining market offers strong growth opportunities for a comprehensive process solution provider
Mining market offers strong growth opportunities for a comprehensive process solution provider Continuous growth Strategic focus Revenue Develop into process technology provider, CAGR 1 +45% e.g. beneficiation with focus on grinding and separation 2 Accelerate service growth in dedicated regions 200
Slide 13: Industry Solutions is committed to creating sustainable value
Industry Solutions is committed to creating sustainable value Solution House for Industry Priorities Metals Mining Defend #1 and #2 market positions through 1 technology leadership in all verticals Water Cement Expand Environmental Portfolio to achieve 2 40% of total business volume by 2015 Pulp & P
Slide 14: 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 Adjust
Slide 15: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) New orders and order backlog (continued) New orders are generally recognized immediately when the relevant contract becomes legally effective and binding. The only exception are orders with short overall contract terms. In this case, a separa
Slide 16: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Return on equity, or ROE In line with common practice in the financial services industry, Siemens Financial Services (SFS) uses return on equity, or ROE, as one of its key profitability measures. Siemens defines ROE as annualized Income befo
Slide 17: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) EBITDA (adjusted) and EBIT (adjusted) Siemens defines EBITDA (adjusted) as EBIT (adjusted) before amortization (which in turn is defined as Amortization and impairments of intangible assets other than goodwill) and Depreciation and impairment
Slide 18: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Limitations Associated with Siemens’ Supplemental Financial Measures The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular: With respect to adjusted or organic growth rates o