Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2010)
28 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 29, 2010
Slide 1: Siemens Energy: Fossil Power Generation Division
Siemens Energy: Fossil Power Generation Division Michael Suess CEO Fossil Power Generation © Siemens AG 2010. All rights reserved. Nuremberg, June 29, 2010 Capital Market Day Energy © 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: Energy Sector: Products, Solutions, Instrumentation and Electrical
Energy Instrumentation Products Solutions and Electrical Page 2 June 29, 2010 Capital Market Day Energy © Siemens AG 2010. All rights reserved.
Slide 4: Fossil Power Generation: The backbone of the energy chain
Fossil Power Generation: The backbone of the energy chain Fossil Power Generation FY 09 ∼ 17,000 Products ∼ 10,000 Energy ∼ 4,000 Instrumentation ∼ 3,000 Solutions and Electrical All solutions through to Instrumentation and control Gas turbines complete power plants: systems for all types of S
Slide 5: High profitability due to balanced business mix
High profitability due to balanced business mix Solution Simple Cycle / Combined Cycle Power Plant ∼1/3 Steam Power Plant Concentrated Solar Power Plant Power Plant Solution for O&G Industry Products Highly efficient product portfolio to sustain leading market position Innovations to ass
Slide 6: Fossil Power Generation has a sound portfolio
Fossil Power Generation has a sound portfolio Simple Cycle Combined Cycle Nuclear Steam Power Plant Power Plant Power Plant Conventional Island Typical size per train Typical size per train Typical size per train Typical size per train 160 - 280 MW 400 - 600 MW 800 - 1,100 MW 1,200 - 1,700 M
Slide 7: Fossil Power Generation has a sound portfolio
Fossil Power Generation has a sound portfolio SPPA-T3000 Concentrated Solar Integrated Gasification Instrumentation Control System is Power Plant Combined Cycle and Electrical installed in more than 700 units and global benchmark in controls Typical size IGCC SPPA-T3000 50 - 250 MW Summit Power,
Slide 8: Well positioned for high performance
Well positioned for high performance €bn +11% -7% -43% New orders 11.7 13.0 12.1 7.5 4.3 €bn +20% +1% -1% Revenue 8.1 8.2 9.8 4.8 4.7 €m Profit +24% (in €m and % of (89) 1,275 revenue) 792 13.0% 601 748 9.7% (1.1%) 15.9% 12.7% GW +2pp H1 09 H1 10 +2pp Market share 10% 12% 14% FY 07 FY 08 FY 09 H1 20
Slide 9: Fossil Power Generation has a leading position
Fossil Power Generation has a leading position High profitability due to balanced business mix: 1/3 Solution, 2/3 Products and Service No.1 position in steam market with an overall market penetration of > 40% No.1 position in advanced GT frames with an overall GT market penetration of >45% N
Slide 10: Scenario: Fossil energy sources remain dominant, but renewables grow
Scenario: Fossil energy sources remain dominant, but renewable energy becomes more important Power generation by energy carriers (in TWh) 2.5% per year 33,000 Renewable 17% (w/o Hydro) Plus 4,200 TWh 15% Hydro 20,000 3% 15% Nuclear 16% 15% 20% Gas Fossil 22% 2% Oil 5% energy sources 31% Coal 39% 200
Slide 11: Regional sales organization fosters close relationship with customers
Regional sales organization fosters close relationship with our customers Europe Asia NME/Africa/CIS America No. of clusters and No. of clusters and No. of clusters and No. of clusters and countries countries countries countries 4 clusters 5 clusters 3 clusters 5 clusters 45 countries 26 cou
Slide 12: Multi-local setup: global manufacturing and engineering network
Multi-local setup Our Global manufacturing and engineering network Power Machines Fuji (St. Petersburg) (Osaka) Hamilton TACR Steam Turbines Gas Turbines Gas Turbines (Middletown) Generators Service Blades & Vanes Budapest Gurgaon (SPEL) Repair Blades Engineering Erlangen Bearings EPC new Charlotte
Slide 13: Operational excellence programs maintain competitiveness
We maintain competitiveness and create headroom via our operational excellence programs Our cost reduction programs… 20% Plant and material cost reduction by: 30% Manufacturing lead-time reduction by: Plant modularization Design-to-cost measures Supplier workshops and design-to-cost initiative
Slide 14: We have the right steam products for our customers
We have the right steam products for our customers Steam Turbine Gas Turbine SST-3000 SST-5000 SST-6000 SST-9000 Reliable and Efficient Leading Unique robust power technology power Output range Output range Output range Output range CCPP CCPP SPP NPP Generator 90 - 250 MW 120 - 500 M
Slide 15: Selective approach in steam turbine market
Selective approach in steam turbine market Operating ST fleet in units as of FY 09 Steam Power Plant market 949 548 Biggest SPP markets China and India SPP are served via JV partner and licenses 467 301 221 165 CCPP Europe, USA and Middle East 96 100 NPP selected direct business Europe Asia NME/
Slide 16: We have the right gas products for our customers
We have the right gas products for our customers Gas Turbine Steam Turbine SGT5-2000E SGT5-4000F SGT6-5000F SGT5-8000H Outstanding State of the art Highest World largest reliability technology performance gas turbine Generator GT GT GT GT 168 MW / ∼ 35% 292 MW / ∼ 40% 200 MW / ∼ 38% 375 MW /
Slide 17: Profitable growth in our core segment gas
Profitable growth in our core segment gas Operating GT fleet in units as of FY 09 Gas power plant market 1,091 Future market for gas power plants will grow due to low CO2 emissions 501 190 192 208 Renewables will play a major role, gas power plants will continue to secure peak and base load dema
Slide 18: Best-in-class Fossil Power Generation projects
Best-in-class Fossil Power Generation projects Russia Vietnam The Netherlands USA FY 09 market share FY 09 market share FY 09 market share FY 09 market share gas power plant [MW] gas power plant [MW] gas power plant [MW] gas power plant [MW] ∼ 80% 100% 100% ∼ 30% for advanced GT Recent pro
Slide 19: Showcase core segment gas turbines: innovation pipeline
Showcase core segment gas turbines: Well stocked innovation pipeline Service business Market introduction Development Return 5-4000F 6-5000F 5-2000E (5-6) 6-4000F 5-2000E/ 5-4000F (4) 6-5000F (8) (4) 6-2000E Base (7) (3) 5-2000E 5-4000F (3-4) technology (6-7) (4) program SGT6- NewF 6-8000H >30 years
Slide 20: SGT-8000H: Proven economic advantages
SGT-8000H Proven economic advantages > 60% efficiency in combined cycle power plant 375 MW output in simple cycle power plant (50Hz) 575 MW output in combined cycle power plant (50Hz) Reduced emissions per produced kWh High efficiency and low emission also in part-load operation Fast sta
Slide 21: Clear No.1 position in Instrumentation and Electrical business
Clear No.1 position in Instrumentation and Electrical business Instrumentation and Electrical No.1 position in Instrumentation and Electrical business More than 900 units of Control System SPPA-T3000 sold Increase of market share above 20% Innovation: Never goes obsolete Global benchmark i
Slide 22: All gas scenario could reduce emissions by 60%
All gas scenario could reduce emissions by 60% Scenario: World CO2 emissions World CO2 emissions State-of-the-art Siemens CCPP technology in 2007 (Gt) in 2007 (Gt) Use of latest SPP-, CCPP- and SCPP- MaasStroom Energie E.ON Energie AG The Netherlands Germany technology Fossil CO2 reduction Fossil Po
Slide 23: Fossil Power Generation will maintain a leading position
Fossil Power Generation will maintain a leading position Consistently deliver double-digit margin Self-funded development of new technologies, conventional island and organizational restructuring Strong contribution to the Siemens environmental portfolio based on high-efficiency gas power plants Sol
Slide 24: 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 25: 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 26: 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 27: 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 28: 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