Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2011)
20 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 28, 2011
Slide 1: Local innovation and footprint drive growth
Local innovation and footprint drive growth Dr. Udo Niehage CEO Power Transmission Capital Market Days "Emerging Markets" Shanghai, June 28, 2011 © Siemens AG 2010. All rights reserved. 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: Solving the most complex transmission challenges
Solving the most complex transmission challenges From HVDC long-distance transmission … … to regional transmission grids … all the way to large cities & load centers … and grid access for renewable energy Page 3 Capital Market Days "Emerging Markets", Shanghai, June 28, 2011 Copyright © Siemens AG 2
Slide 4: Power Transmission in 2010: Leading position worldwide and in emerging markets
Power Transmission in 2010: Leading position worldwide and in emerging markets High-voltage €6.8 billion in new orders in Transformers products 2010 of which 54% from Products emerging markets Balanced portfolio (now 50/50) between products & solutions Main customer segments: T&D utilities H
Slide 5: Unique industry-wide: Our global footprint keeps us close to customers everywhere
Unique industry-wide: Our global footprint keeps us close to customers everywhere Worldwide 2010 Of which in EM € ) R&D #b bb € ) R&D #b bb 6.1 51 26 17 18 20.3 3.6 27 15 7 7 10.3 2 2 7 4 7 2 3 2 2 2 3 10 3 5 2 2 3 € Revenue in €bn R&D # of R&D centers 4 ) # of Manufacturing facilities 2 # of Center
Slide 6: Strong worldwide market growth >5% p.a.
Strong worldwide market growth >5% p.a. Market development Market trends in € billions Solid market development mid-term, balanced between emerging and CAGR developing countries: 48 Growth pattern in electricity demand Emerging markets growth driven by Brazil 39 BRIC countries (CAGR >8%) moving
Slide 7: Strong global order growth in 2010 – price pressure & fewer large projects in emerging markets
Strong global order growth in 2010 – price pressure & fewer large projects in emerging markets Fiscal year First half year yoy -7% 3.7 1.9 3.9 +1% New orders 1.9 (in € billions) 2.1 2.4 +30% 3.1 1.2 +69% FY09 FY10 1H FY10 1H FY11 yoy 3.5 +3% 3.6 +6% 1.7 Revenue 1.6 (in € billions) 2.6 -6% 2.5 1.1 +1
Slide 8: Innovation and footprint drive capital-efficient growth
Innovation and footprint drive capital-efficient growth Growth Footprint Innovation N°1 in fastest growing segments Optimization of manufacturing Two-fold innovation strategy: facilities worldwide: Cost leadership Urban areas reduction in GER, UK, FR Pioneer solutions Long-distance localiz
Slide 9: Footprint concept – Keep close to our customers and to cost-efficient suppliers
Footprint concept – Keep close to our customers and to cost-efficient suppliers Where to be: Largest markets Engineering close to customers Ø Market size 2010-2016 A-Clusters1) (60%) Center of Rest (100%) competence Where to be: Low costs Manufacturing concept being implemented Deep value Top Global
Slide 10: Hubs in emerging countries ensure customer intimacy and access to local resources and know-how
Hubs in emerging countries ensure customer intimacy and access to local resources and know-how Eastern Europe China Largest Power Transmission market RUS as main market with huge demand worldwide; SGCC & CSG two large for grid modernization customers, pushing innovation forward Localization in
Slide 11: Successful green-field projects – Manufacturing sites in emerging countries
Successful green-field projects – Manufacturing sites in emerging countries Factory inaugurated Feb 2011 Manufacture of equipment for high-voltage systems Expansion for final assembly and R&D ongoing 500 employees by 2015 HV product factory in Querétaro Factory inaugurated April 2009 400
Slide 12: Emerging markets drive innovations
Emerging markets drive innovations Ultra-high- "First" in market: First-ever High-performance voltage dipole 800-kV DC project in products / solutions: equipment operation for CSG (YunGuang) UHV in China, India & Brazil Highest ratings & Highest "First" in market: performance for ratings & 420-k
Slide 13: Power Transmission outgrows the market – Profitably
Power Transmission outgrows the market – Profitably Market fundamentals are pushing for growth 1 Large mandatory investments in power transmission infrastructures We have the right regional footprint, constantly being optimized 2 To be where our customers are and to benefit from low-cost supply area
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; Adjus
Slide 15: 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 16: 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 17: 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 18: 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 19: 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
Slide 20: Revenue growth - Performance against competition
Revenue growth - Performance against competition Definition Revenue growth - Performance against competition To illustrate management’s perspective on the Company’s performance against competition, Siemens compares its own revenue growth rate with the weighted average revenue growth rate of its Sect