Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2007)
27 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 21, 2007
Slide 1: Power Transmission and Distribution
Power Transmission and Distribution - Dr. Udo Niehage, Group President Capital Market Days 2007 June 21-22, Berlin
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words as “expects”, ”looks forward to”, “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will” or wor
Slide 3: Electrical energy is the backbone of our society
Electrical energy is the backbone of our society Page 2 June 2007 Capital Market Days
Slide 4: PTD delivered what was promised
PTD delivered what was promised Key Financials: Improvement 2006 vs. 2005 in € m in € m 10,000 600 9,000 PTD Profit 500 8,000 +84% Δ 2006 vs. 2005 +52% 400 7,000 Δ 2006 vs. 2005 6.0%1) 6,000 300 5,000 7.8%2) +53% 200 4,000 Δ 2006 vs. 2005 5.0%1) 100 3,000 PTD New Orders PTD Sales 2,000 0 2005 2006 2
Slide 5: PTD group profit 2006 vs. 2005: +84%
PTD group profit 2006 vs. 2005: +84% New target margin until 2010: 7% - 10% 12 months trailing business volume Key Financials € bn FY06 Δ06 vs. 05 H1 07 Δ07 vs. 061) 10 (US GAAP) (IFRS) 9 New Orders2) 8,028 +52% 5,622 +32% 8 Sales 6,509 +53% 3,484 +18% 7 Group profit2) 390 +84% 273 +72% 6 as percent
Slide 6: PTD – Gaining significant market share
PTD – Gaining significant market share Market Share Development 1) 2003 16% 2005 17% 2006 20% 2003 10% 2005 14% 2006 18% 2003 8% 2005 7% 2006 9% 2005: Siemens data with anticipated full FY VATech T&D 1) Comparable portfolio With double digit sales growth closing the gap to # 1 Page 5 June 2007 Capit
Slide 7: Leading market positions in nearly all businesses
Leading market positions in nearly all businesses Divisions High voltage (H) Medium voltage (M) Transformers (T) Energy Services (SE) Automation (EA) Components, Components, Power transformers Integrated control Network planning & switchgear and switchgear and up to 1,300 MVA systems, protection con
Slide 8: T&D Market and New orders trend
T&D Market and New orders trend PTD grows faster than the market T&D Market1) PTD Target (New orders) € 55 bn +7% p.a. 18 % +16% p.a. +10 % p.a. € 39 bn Africa / NME2) / 16 % CIS3) 37 % Asia- +8 % p.a. € 5.3 bn Pacific 36 % 21 % Americas +7 % p.a. 21 % Rest of Europe +5 % p.a. 20 % (w/o Germany) 22
Slide 9: Investments in transmission networks expected to exceed €1,300 bn over 25 years
T&D Market: Investments in transmission networks are expected to account for more than € 1,300 bn over the next 25 years Forecast transmission and distribution investment, 2003-30 (€ bn) 1,400 Transmission Distribution Implications Implications 1,200 Differentiated Differentiatedregional regionals
Slide 10: Aging infrastructure drives demand for T&D investments in mature markets
Aging infrastructure drives demand for T&D investments in mature markets over the next years Mature markets Example USA Average age of substations T&D investment in the US US $ bn 10.0 8.0 6.0 4.0 2.0 0 Average age is 30 years Expected market volume 2007- 2027: US $ 200 bn / € ~160 bn Survey among 3
Slide 11: Siemens PTD is a driver of SmartGrid technologies
New opportunities: Siemens PTD is a driver of SmartGrid technologies European Technology Platform “SmartGrids” Vision and Strategy for Europe's Electricity Networks of the future Virtual power plants Load flow control Demand side management Blackout prevention Reliability centered asset ma
Slide 12: Well-balanced portfolio in traditional T&D market
Well-balanced portfolio in “traditional” T&D market Formation & Leadership Profit & Growth Operation 2003 Invest: Common T&D Portfolio Divest: Trench completed Cable Prepared to cope with new VA Tech Metering market challenges PTI Marqott a.o. € bn Elektrozavod Growth above market 8.0 6.5 5.6 3.
Slide 13: Continuous improvement of cost position via low-cost countries
Continuous improvement of cost position by expansion of value add in low-cost-countries Europe (incl. Germany) 56% 40% 46% Africa/NME1)/CIS2) 3% 17% v € ) 0% v € ) Americas 17% 20% 24% Asia-Pacific 24% 23% 30% v € ) PTD World v € ) v Employees (thousands) 27.5 6.5 58 € Sales ( in € m) 16.4 3.4 35 )
Slide 14: Strengthening of our market position in Russia
Strengthening of our market position in Russia Joint Venture Siemens AG / Elektrozavod OAO, Moscow Strategic goals Regional market entrance with a leading T&D equipment manufacturer in Russia (Siemens owns 51% of J.V. shares) Strong market share gain Build up of engineering resources in Russia
Slide 15: Optimization of processes and resources
Optimization of processes and resources Examples: Vacuum Interrupters, Berlin & Power Transformers, Jinan Berlin Productivity improvement Activities Vacuum Interrupters 2005 FC 2007 Δ 05/07 Process optimization Interrupters 150.000 200.000 + 33 % Implementation of 3-shift-operation Headcount 105
Slide 16: New solutions driven by worldwide challenges
New solutions driven by worldwide challenges Increasing demand for Utilization of renewable energy and distributed power generation Urbanization Transmission of huge amount of energy via large distances Security of supply Power distribution for urban areas and mega cities Climate change More flexibl
Slide 17: Virtual Power Plants for efficient operation of distributed energy resources
Utilization of renewable and distributed power generation: “Virtual Power Plants” for the efficient operation of distributed energy resources The pooling of different power plants to one virtual unit allowed SaarEnergie to trade at the European Energy Exchange (EEX). Page 16 June 2007 Capital Market
Slide 18: HVDC PLUS
HVDC PLUS The cost effective smart HVDC-Solution for medium size application (< 1 GW) Remote power generation Environmentally friendly decentralized generation Remote loads Interconnections Substitution of overhead lines Supply of small islands Supply of oil rigs (future) Connection of offshore wind
Slide 19: Transmission of energy over long distances: remote hydro power in China
Transmission of energy over long distances Example: Remote hydro power in China HVDC with the world’s highest power capacity ever: 5,000 MW across 1,400km World’s first 800kV HVDC Order signed: 6/2007 from China Southern Power Grid Contract value: > € 300 m Enables use of hydro power from
Slide 20: Distributed power generation and long distance transmission offer new market potential
Distributed power generation and long distance transmission offer new market potential HVDC – Remote hydro power in China: HVDC with the world's highest power capacity ever: 5000MW across 1400km World's first 800kV HVDC Order signed: 06/2007 with China Southern Power Grid; Contract value > € 3
Slide 21: Solutions for congested areas / Megacities
Solutions for congested areas / Megacities Gas Insulated Devices Significant space savings up to 90% Highest reliability Sealed from environmental influence Low maintenance costs Low Noise Power Transformers Example: Big power for big cities with the "whispering transformer" for Con Edison,
Slide 22: Reduction of pollution and noise emission
Reduction of pollution and noise emission Example: On-shore power supply for ships SIPLINK for power supply of ships in harbors to avoid the need for running the ship diesels. Will reduce engine fuel consumption Will cut SO2 emissions Will reduce noise emissions Will support environmental re
Slide 23: SIPLINK for the improvement of the power supply of oil rigs
SIPLINK for the improvement of the power supply of oil rigs Unique Siemens solution: Improvement of: Power supply reliability Efficiency by turning off unneeded diesel generators Page 22 June 2007 Capital Market Days
Slide 24: PTD's priorities to achieve goals
People Portfolio Excellence Develop talent globally Build on our strengths in Strengthen leadership Energy & Environmental development People Care Attain high performance Portfolio Automation & Control, Excellence culture Industrial & Public Strengthen expert careers Infrastructures Pe
Slide 25: Key take aways
Key take aways Extremely attractive market environment PTD clearly outpacing market growth Excellent performance, margins with further upside potential Well-balanced portfolio for „traditional“ T&D market and leading innovations for new T&D opportunities Clear focus on improving cash conve
Slide 26: Reconciliations and definitions
Reconciliations and definitions ”Group profit from Operations” is reconciled to ”Income before income taxes” of Operations under ”Reconciliation to financial statements” on the table ”Segment information.” See ”Financial Publications/Quarterly Reports, FY07 Q2, Financial Statements” at our Investor
Slide 27: Siemens Investor Relations Team
Siemens Investor Relations Team Marcus Desimoni +49-89-636-32445 Roland Bischofberger +49-89-636-36165 Florian Flossmann +49-89-636-34095 Irina Pchelova +49-89-636-33693 Christof Schwab +49-89-636-32677 Susanne Wölfinger +49-89-636-30639 Webpage: http://www.siemens.com/investorrelations e-mail: inve