Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Commerzbank German Investment Seminar 2014
20 slides from Siemens Aktiengesellschaft's conference presentation, Jan 13, 2014
Slide 1: Delivering value in Fiscal 2014 and beyond
Joe Kaeser, President and CEO Delivering value in Fiscal 2014 and beyond Commerzbank German Investment Seminar New York, January 13, 2014 © Siemens AG 2014. 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: Siemens at a glance
Siemens at a glance Financials FY 2013 Rev: €26.6bn Rev: €14.0bn Rev: €18.6bn Rev: €17.9bn Profit: €2.0bn Profit: €2.0bn Profit: €1.5bn Profit: €0.3bn Infrastruc- Energy Healthcare Industry ture & Cities Power Generation Imaging & Therapy Industry Automation Rail Systems Wind Power Clinical Products
Slide 4: Siemens Management Agenda: 2014 Priorities for sustainable value creation
Siemens Management Agenda: 2014 Priorities for sustainable value creation Implement lead country concept to Improve market proximity get closer to the customer Strengthen corporate core and foster Provide efficient governance accountability, e. g. through compensation system Achieve margin improveme
Slide 5: Improve customer proximity through simplified regional organization
Improve customer proximity through simplified regional organization Simplified regional set-up as of Nov. 1, 2013 Old set-up: 14 Regional Clusters New set-up: 30 Lead Countries L dC Lead Countries ti A i Assigned dCCountries ti • Elimination of one organizational level (Clusters) • 30 Lead Countries
Slide 6: Changes in variable compensation system foster accountability and alignment
Changes in variable compensation system foster accountability and alignment FY 2013 FY 2014 All Managing Board members CEO, CFO, CTO Sector CEOs Siemens 0% 0% 20% revenue growth 37.5% 60% Siemens 40% ROCE adjusted 12.5% • Sector 20% • Regions Siemens 50% 40% • Focus Free Cash Flow Individual 20% are
Slide 7: Strengthening core activities by active portfolio management
Strengthening core activities by active portfolio management Solar ramp down ongoing Turbocare JV Wood Group (49%) Energy TLT Turbo sold Healthcare Radiation Oncology ramp down Partnership with Varian LMS International Water Treatment Expansion of PLM portfolio Industry Low synergies, sold
Slide 8: Delivering results on transformation in Fiscal 2014
Delivering results on transformation in Fiscal 2014 FY 2013 Assumptions for FY 2014 In € bn Orders 82.4 Book-to-bill above 1 Remain organically near prior year level due to Revenue 75.9 recovery of short cycle business only late in FY 2014 EPS1) 5.08 Grow by at least 15% from FY 2013 level Burdened
Slide 9: Attractive shareholder return driven by stable dividend & share buyback
Attractive shareholder return driven by stable dividend & share buyback € 6.00 Payout ratio policy € 5.10 10 Dividend per share 5.00 Share buyback (SBB) effect per share € 4.37 Dividend payout ratio3) 4 00 4.00 SBB SBB 3.00 51% 60% 46% 42% 2.00 57% 40% 1.00 34% € 1.60 1 60 € 2.70 2 70 € 3.00 3 00 €
Slide 10: Comprehensive share programs @ Siemens foster ownership culture
Comprehensive share programs @ Siemens foster ownership culture Share ownership guidelines Performance-oriented stock awards SPAC1) 300% of base salary adjustment + EPS adjustment + transfer 200% of base salary allocation 4-year vesting period 100% of base salary 50% of base salary Year 1 Year 2 Yea
Slide 11: 'Siemens beyond 2014' is based on a clear set of criteria
'Siemens beyond 2014' is based on a clear set of criteria Areas of growth? Potential profit pool? Competitive advantages – Why Siemens? 'Siemens beyond 2014' Synergetic value of businesses? Paradigm P di shifts hift iin technology / markets? © Siemens AG 2014. All rights reserved. Page 11 New York,
Slide 12: Operational priorities, clear roles & responsibilities and value culture set the stage for review of strategy
Operational priorities, clear roles & responsibilities and value culture set the stage for review of strategy 'Siemens Siemens beyond 2014 2014' p • Resource allocation • Corporate Core • Accountability • Corporate Memory Management Model • Lead country • Risk concept p management g • Localization •
Slide 13: Our roadmap to shape 'Siemens beyond 2014'
Our roadmap to shape 'Siemens Siemens beyond 2014 2014' Managing Board Combine Sector and Region responsibility Streamline Management Board Foster accountability and alignment through individual incentive model Regional organization – Secure and optimize customer interface Set-up and implement
Slide 14: Thank you for your attention – Questions and Answers
Questions and Answers Thank y you for y your attention – your questions, please! © Siemens AG 2014. All rights reserved. Page 14 New York, January 13, 2014 Commerzbank German Investment Seminar
Slide 15: Appendix
Appendix © Siemens AG 2014. All rights reserved. Page 15 New York, January 13, 2014 Commerzbank German Investment Seminar
Slide 16: One Siemens cockpit – FY 2013
One Siemens cockpit – FY 2013 Call for focus on profitability & capital efficiency in FY 2014 Financial target system Growth1) Margins compared to industry benchmarks Revenue growth (rolling 4 quarters FY 13) EBITDA Margins (FY 2013) Energy 9 9% 9.9% 10-15% Siemens -2.0% Healthcare 19.8% 15-20% -3.6
Slide 17: Outlook Fiscal 2014
Outlook Fiscal 2014 Basic earnings per share (Net income) • We expect our markets to remain In € challenging in Fiscal 2014. At least 15% growth • Our short-cycle businesses are not 6.55 anticipating a recovery until late in the fiscal year. 5.08 • We expect orders to exceed revenue, for a 4.74 book
Slide 18: Financial calendar
Financial calendar January January 13 13, 2014 Commerzbank German Investment Seminar (New York) January 28, 2014 Q1 Earnings Release; Annual General Meeting February y February 11, 2014 Roadshow Switzerland (Zurich) March March 20, 2014 Bank of America Merrill Lynch Conference (London) © Siemens AG
Slide 19: 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 +49 89 636 32830 Internet: http://www.siemens.com/investorrelations Email: investorrelations@siemens.com © Siemens AG 2014. All rights reserved. Page 19 New York, January
Slide 20: Reconciliation and Definitions for Non-GAAP Measures
Reconciliation and Definitions for Non GAAP Measures Non-GAAP This document includes supplemental financial measures that are or may be non-GAAP financial measures. Orders and order backlog; g; adjusted j or organic g g growth rates of revenue and orders;; book-to-bill ratio;; Total Sectors profit;