Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2011)
36 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 28, 2011
Slide 1: Gaining Competitive Edge with Emerging Markets
Gaining Competitive Edge with Emerging Markets Dr. Bernd Montag CEO Imaging & Therapy Systems Division Capital Market Days "Emerging Markets" Shanghai, June 28, 2011 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: Leading globally and in Emerging Markets
Imaging & Therapy in Emerging Markets today Leading globally and in Emerging Markets No. 1 position in Worldwide Developed Markets revenue1) growth CAGR +5% 38% FY08 FY10 No. 1 position in Emerging Markets Revenue1) growth in Emerging Markets 37% CAGR CAGR CAGR CAGR +17% +26% +20% +31% FY08 FY10 FY0
Slide 4: Market leader in the Emerging Markets, e.g. MR and CT
Imaging & Therapy in Emerging Markets today Market leader in the Emerging Markets, e.g. MR and CT Magnetic resonance Computed tomography in Emerging Markets in Emerging Markets Equipment sales Equipment sales +27% +12% FY09 FY10 FY09 FY10 Sales mix1) Sales mix1) 14% 9% 23% 48% Graues MR 38% 68% hern
Slide 5: Partner of choice for healthcare entrepreneurs in India
Imaging & Therapy in Emerging Markets today Partner of choice for healthcare entrepreneurs in India EX AM PL E HCG South Asia's largest cancer care network Profile Siemens customer since 2003 Total Siemens sales in 8 years USD 25 m Collaboration agreement signed for 7 years Delhi Future expans
Slide 6: Partner of choice for healthcare entrepreneurs in India
Imaging & Therapy in Emerging Markets today Partner of choice for healthcare entrepreneurs in India EX AM PL E AARTHI scans Tondiarpet Profile Perambur First center in Chennai opened in 2003 Kilpauk Annanagar Exclusive Siemens customer from 2003 Today 15 centers in Tamilnadu state Vadapalani A
Slide 7: Partner of choice for first time users in China
Imaging & Therapy in Emerging Markets today Partner of choice for first time users in China > 150 hospitals with first time access to MR/CT imaging in 2010 Harbin Urumqi Shenyang Beijing Dalian Hebei Xining Tsinghua Jinan Zhengzhou Ma'anshan Anhui Xi'an Chengdu Shanghai Wuhan Nanjing Lhasa Hangzhou
Slide 8: R&D cooperations with the thought leaders, e.g. China
Imaging & Therapy in Emerging Markets today R&D cooperations with the thought leaders, e.g. China > 50 clinical research collaborations in China Harbin Urumqi Shenyang Beijing Dalian Hebei Xining Tsinghua Jinan Zhengzhou Ma'anshan Anhui Xi'an Chengdu Shanghai Wuhan Nanjing Lhasa Hangzhou Chongqing H
Slide 9: Broadest footprint in Emerging Markets
Imaging & Therapy in Emerging Markets today Broadest footprint in Emerging Markets R&D and production sites in Asia Share of R&D Ressources in Asia Shanghai Wuxi Shenzhen Bangalore Goa > 1/3 of R&D employees are based in Asia Every 6th patent for CT is coming from developers in Asia Chinese R&
Slide 10: R&D, production and sourcing for all major entry level / SMART products in Asia
Imaging & Therapy in Emerging Markets today R&D, production and sourcing for all major entry level / SMART products in Asia Entry Level Angio Spect CT Entry Level MR Entry Level MR Entry Level CT Entry Level CT Page 10 Capital Market Days "Emerging Markets", Shanghai, June 28, 2011 Copyright © Sieme
Slide 11: Every 4th MR and every 2nd CT coming out of China
Imaging & Therapy in Emerging Markets today Every 4th MR and every 2nd CT coming out of China MAGNETOM ESSENZA Best selling MR in India MR SOMATOM Spirit Best selling CT in Brazil CT Page 11 Capital Market Days "Emerging Markets", Shanghai, June 28, 2011 Copyright © Siemens AG 2011. All rights reser
Slide 12: Emerging countries have become integral part of our global setup
Emerging countries have become integral part of our global setup t e d a gr etup te In a l s b t f or glo a rke evel M ry-l s ent oduct ost ng pr c i Lowfactur ng a nu ourci m ds an region Developed Market Emerging Market Page 12 Capital Market Days "Emerging Markets", Shanghai, June 28, 2011 Copyri
Slide 13: Market leader in developed countries
Market leader in developed countries What sets us apart Undisputed innovation Leader in high-end segment Leading cost position in entry-level segment due to scale effects Network of close cooperations with opinion leaders Page 13 Capital Market Days "Emerging Markets", Shanghai, June 28, 2011
Slide 14: Market leader in emerging countries
Market leader in emerging countries What sets us apart Access to cutting edge technology Local R&D and sourcing for entry-level products Market leader in Emerging Markets and in Brazil, India and China Page 14 Capital Market Days "Emerging Markets", Shanghai, June 28, 2011 Copyright © Siemens
Slide 15: Market leader in a global business
Market leader in a global business Global products, local focus Global Setup Global R&D, global SCM, local tasks Global scale, local benefits Page 15 Capital Market Days "Emerging Markets", Shanghai, June 28, 2011 Copyright © Siemens AG 2011. All rights reserved.
Slide 16: P&L statement of a typical scanner
Imaging & Therapy: Leveraging global scale P&L statement of a typical scanner 1) Example for a typical product € 1 bn equipment € 40 - 120 m R&D Key levers for global success: revenue over 5 yrs1) 500 units p.a. Addressing similar needs in a "flat" ≙30% world market world share in this segment
Slide 17: Addressing similar needs in a "flat" world
Imaging & Therapy: Leveraging global scale Addressing similar needs in a "flat" world Developed Markets High-end M1sold Siemens‘ units Mid-range € 1 bn equipment by segment Entry-level revenue over 5 yrs1) 12% 44% 44% COGS BRIC + ME Siemens‘ units sold by segment R&D 9% 29% SG&A 62% Profit Figures:
Slide 18: Developed and Emerging Markets complementing each other
Imaging & Therapy: Leveraging global scale Developed and Emerging Markets complementing each other Developed Emerging € 1 bn equipment Markets Markets revenue over 5 yrs1) Europe Definition Flash High-end USA COGS Mid-range Emotion China R&D Entry-level SG&A Profit Serving Global product responsibil
Slide 19: Maximizing scale effects
Imaging & Therapy: Leveraging global scale Maximizing scale effects € 1 bn equipment CT – X ray Re-use of Hardware tube assembly revenue over 5 yrs1) platforms Common components Flat module layout Best cost position and assembly COGS Gradient amplifier R&D SG&A Software modules Hardware driver
Slide 20: Local sourcing for global products
Imaging & Therapy: Leveraging global scale Local sourcing for global products EX AM Number of Chinese PL Cost reduction E suppliers € 1 bn equipment CAGR DVI Splitter revenue over 5 yrs1) +12% From China -73% LCD Display Glass Parts UPS Alu. Profiles FY08 FY09 FY10 Molding Covers COGS Cabinets Trans
Slide 21: Squeezing out transportation costs
Imaging & Therapy: Leveraging global scale Squeezing out transportation costs EX AM PL E MR Transportation costs Global logistic and assembly -15% € 1 bn equipment concept revenue over 5 yrs1) Site of final assembly depending on destination for product CT for China Example: MR logistic concept -
Slide 22: Global R&D setup
Imaging & Therapy: Leveraging global scale Global R&D setup Reuse of software platforms and applications € 1 bn equipment Improved time to market by "trickling down" revenue over 5 yrs1) Low cost innovations by "trickling up" High share of R&D employees in low cost countries COGS High-end Mi
Slide 23: Powerful mix of direct and indirect channels, optimizing SG&A
Imaging & Therapy: Leveraging global scale Powerful mix of direct and indirect channels, optimizing SG&A Number of Number of distributors sales staff € 1 bn equipment revenue over 5 yrs1) CAGR >40% CAGR +12% COGS FY07 FY06 FY08 FY09 FY10 FY06 FY07 FY08 FY09 FY10 Sales development distributor busines
Slide 24: The initial equipment revenue is just the first step in our business
The initial equipment revenue is just the first step in our business #1 in in market market share share #1 in in installed installed base base #1 in in profitability profitability Page 24 Capital Market Days "Emerging Markets", Shanghai, June 28, 2011 Copyright © Siemens AG 2011. All rights reserved
Slide 25: Steadily building up recurring revenue and profit
Steadily building up recurring revenue and profit Brazil India China Installed base1) growth Installed base1) growth Installed base1) growth CAGR CAGR CAGR >10% >10% >10% >1,000 >1,500 >4,000 units units units FY05 FY10 FY05 FY10 FY05 FY10 Service- & upgrade sales Service- & upgrade sales Service- &
Slide 26: Megatrends will continue to provide tailwind, example China
Megatrends will continue to provide tailwind Example China High economic growth Second largest economy GDP growth FC of 8.5% Aging population Population aged >65 in China will triple until 2050 (110,000 (9%) to 350,000 (25%)) Life expectancy will increase by 5 years up to 80 years in 2050 In
Slide 27: Installed MR scanners per million population
Megatrends will continue to provide tailwind, e.g. Brazil, India, China Density of Magnetic Resonance Imaging systems 45 Installed MR scanners per m poulation Developed Market 40 Emerging Market 35 30 25 20 15 Ø ~15 (OECD Average) 10 5 0 Japan United Switzer-Germany Austria Korea United Italy Brazil
Slide 28: Population
Megatrends will continue to provide tailwind, e.g. Brazil, India, China Population 1.400 Inhabitants in m Developed Market 1.300 Emerging Market 1.200 1.100 1.000 900 800 700 600 500 400 300 200 100 0 Japan United Switzer-Germany Austria Korea United Italy Brazil China India States land Kingdom Page
Slide 29: Summary
Summary No. 1 in No. 1 in Developed Emerging Markets Markets Future Leading trends integrated supporting global set-up our lead Page 29 Capital Market Days "Emerging Markets", Shanghai, June 28, 2011 Copyright © Siemens AG 2011. All rights reserved.
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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