Slide 1: Fiscal year 2011 off to a strong start
Fiscal year 2011 off to a strong start Peter Löscher, President and CEO Joe Kaeser, CFO Q1 FY 11 Analyst call January 25, 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: Rising revenues convert into profit and cash
Rising revenues convert into profit and cash Siemens (continuing operations), in €m Q1 FY 10 Q1 FY 11 Change New orders 18,976 22,588 13%1) Revenue 17,352 19,489 6%1) Book-to-bill 1.09x 1.16x Profit Total Sectors 2,109 2,2292) 6% Income from continuing operations 1,526 1,787 17% Basic earnings per s
Slide 4: Clear growth dynamics in orders boost backlog
Clear growth dynamics in orders boost backlog Strong order backlog1) Major order wins in Q1 €bn Industry: 10 Highspeed trains for rail operator in the UK Large Metro orders 92 ~34 in Oslo (32 trains with ~€180m order 87 13 volume) 29 in Munich (21 trains + additional option for Industry 28 1
Slide 5: Moderate revenue growth helped by strength in short cycle businesses across all regions
Moderate revenue growth helped by strength in short cycle businesses across all regions Q1 FY 11 Revenue Regions - Q1 FY 11 revenue growth y-o-y1) y-o-y1) Siemens 6% Industry 7% Europe/C.I.S./ 3% Industry Automation 20% Africa/ME (therein Germany) 15% Drive Technologies 15% Building Technologies 7%
Slide 6: Profitability remains strong supported by short cycle growth environment and stringent project execution
Profitability remains strong supported by short cycle growth environment and stringent project execution Q1 FY 11 Profit Profit margin excl. Income from cont. operations margin1) employee bonus €m +17% Industry 11.2% 12.8% Industry Automation 20.2% 21.6% 1,787 1,526 Drive Technologies 12.5% 14.0% 12
Slide 7: Free cash flow and ROCE show a favourable trend
Free cash flow and ROCE show a favourable trend Free cash flow development1) ROCE adjusted (cont. operations) €m 7,013 +380 bps FY 2010 FY 2011 FY 2010 4,058 One Siemens FY 2011 23.0% target 19.2% 15-20% 1,929 928 697 Q1 FY 10 Q1 FY 11 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Advanced payme
Slide 8: Outlook 2011
Outlook 2011 With continuing improvement in Siemens’ markets, we expect organic order intake to show a clear increase compared to fiscal 2010 Supported also by our already strong order backlog, we expect revenue to return to moderate organic growth We anticipate income from continuing operatio
Slide 9: Financial calendar
Financial calendar January Jan 25, 2011 Annual General Meeting, Q1 Earnings Release and analyst call February Feb 15 - 16, 2011 US Roadshow (New York) Feb 17, 2011 UK Roadshow (London) Feb 18, 2011 German Roadshow (Frankfurt) Page 9 Q1 FY 11, Analyst Call, January 25, 2011 Copyright © Siemens AG 201
Slide 10: 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 11: 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 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 year to the balance
Slide 12: 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 (SFS) uses return on equity (after tax), i.e. ROE (after tax), as one of its key (after tax) profitability m
Slide 13: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) Free cash flow and cash conversion rate (continued) Cash conversion rate, or CCR, is defined as Free cash flow divided by Net income. Siemens believes that the presentation of the CCR provides useful information to investors because it is an
Slide 14: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Net debt Siemens defines net debt as total debt less total liquidity. Total debt is defined as Short-term debt and current maturities of long-term debt plus Long-term debt. Total liquidity is defined as Cash and cash equivalents plus current A
Slide 15: 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 (continued) With respect to return on capital employed, or ROCE (adjusted): The use of this measure is inherently limited by the fact that it is a ratio and thus does