Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Bernstein Strategic Decision Conference 2014

22 slides from Siemens Aktiengesellschaft's conference presentation, May 29, 2014

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 “expect,” “look forward to,” “anti
Slide 3: Siemens – Vision 2020: Strategic focus
Siemens – Vision 2020: Strategic focus 1 Long-term growth agenda in attractive fields 2 Align portfolio along strategic imperatives 3 Cost reduction and business excellence Ownership culture and leadership based on common values © Siemens AG 2014. All rights reserved. Page 3 Post Q2 FY 2014, Roadsho
Slide 4: Stringent resource allocation for growth fields in Electrification, Automation and Digitalization
Stringent resource allocation for growth fields in Electrification, Automation and Digitalization Selected growth fields Digitalization Business Analytics & Data-driven Services Software & IT solutions 8% 'Digital twin' Image Distribution Software guided Grid Road & City Key Therapy, Automation Mobi
Slide 5: Unconventional Oil & Gas opportunities in North America remain very attractive
Unconventional Oil & Gas opportunities in North America remain very attractive Global unconventional O&G supply development Regional capex split for unconventionals, Production, in Mbbl/d top 5 countries in 2025, USD billion 1.1% +3% 40 4.1% 272 257 35 +7% 9.3% 30 210 110 190 119 25 +17% 147 118 20
Slide 6: Acquisition of Rolls-Royce's Aero Derivative Gas Turbine business offers great value
Acquisition of Rolls-Royce's Aero Derivative Gas Turbine business offers great value Transaction scope Transaction rationale 3) • Acquisition of 100% of Rolls-Royce's aero-derivative gas 1 Excellent fit – complementary technologies turbine (ADGT) and compressor business including related services bu
Slide 7: Flat and market driven organization along the value chain will capture growth opportunities
Flat and market driven organization along the value chain will capture growth opportunities Go-to-market Middle Europe, Asia, Global Americas East, CIS1) Africa Market Australia Healthcare Separately managed Healthcare Power Wind Energy Building Mobility Digital Process Financial and Gas Power and M
Slide 8: Healthcare with higher entrepreneurial flexibility – separately managed under the Siemens umbrella
Healthcare with higher entrepreneurial flexibility – separately managed under the Siemens umbrella Strong position, resilient performance Distinct trends at work Margin • Customer & market structures in tran- range sition (e.g. value-based reimbursement, Profit 16.3% 15-19% convergence of diagnosis
Slide 9: Siemens – Vision 2020: Value creation & Cultural change
Siemens – Vision 2020 Value creation & Cultural change Siemens – Vision 2020 1. Stringent company governance with effective support functions (cost reduction ~€1bn) 2. 'Underperforming' businesses fixed 3. Solid execution of our financial target system • Capital efficiency: ROCE 15-20% • Growth > mo
Slide 10: Simplification leads to reduction of overhead and support function cost by ~€1bn
Simplification leads to reduction of overhead and support function cost by ~€1bn Target Key actions Functional cost reduction • Remove additional layers (Cluster, Sectors) • Combine certain Divisions and Businesses ~€1bn • Stringent management governance through all levels of the organization (Corpo
Slide 11: In depth analysis of businesses has led to specific conclusions
In depth analysis of businesses has led to specific conclusions Portfolio analysis Conclusions Cumulated Profit Focus • Fix underperforming businesses starting with 'bottom 10' businesses • Decide along the Strategic Imperatives • Organic structural realignment Cumulated Revenue • Strategic partners
Slide 12: One Siemens Financial Framework sets the aspiration
One Siemens Financial Framework sets the aspiration One Siemens Financial Framework Siemens Capital efficiency Capital structure Growth: (ROCE2)) (Industrial net debt/EBITDA) Siemens > most 15-20% up to 1.0x relevant competitors1) (Comparable revenue growth) Total cost productivity3) Dividend payout
Slide 13: Foster ownership culture through equity ownership and leadership based on shared values
Foster ownership culture through equity ownership and leadership based on shared values Leadership based Foster equity ownership on shared values Employees owning shares from Siemens Share plans (in thousand) “It is not the >50% 52% strategy which 140 makes the 92 difference, but the culture of a co
Slide 15: Q2 FY 2014 – Key figures
Q2 FY 2014 – Key figures Siemens (continuing operations, in €m) Q2 FY 13 Q2 FY 14 Change Orders 21,235 18,430 -10%1) Revenue 17,779 17,449 1%1) Book-to-bill ratio 1.19x 1.06x Total Sectors profit 1,348 1,566 16% Net income 1,030 1,153 12% Basic earnings per share net income (in €) 1.20 1.33 11% Free
Slide 16: Energy – Performance held back by lower revenues and execution challenges
Energy – Performance held back by lower revenues and execution challenges Key Figures Energy Main developments in Q2 €bn €m • Book-to-bill at 1.09 despite sharp order decline Orders 1) Revenue 1) Profit 2) in Europe/CAME region -23% • Market environment remains challenging 10.5% 8.6% 8.5 -6% 8.8% •
Slide 17: Healthcare – Continued excellent performance on high level despite currency headwinds
Healthcare – Continued excellent performance on high level despite currency headwinds Key Figures Healthcare Main developments in Q2 €bn €m • Order growth supported by strong service Orders 1) Revenue 1) Profit 2) business and improvement in Europe while revenue growth is broad based 15.3% 15.5% • S
Slide 18: Industry – Profit climbs as short cycle businesses continue stabilizing
Industry – Profit climbs as short cycle businesses continue stabilizing Key Figures Industry Main developments in Q2 €bn €m • Short cycle markets show continuing Orders 1) Revenue 1) Profit 2) stabilization, with positive order growth particularly in Germany and China +12% 10.5% 13.2% +5% • Industry
Slide 19: Infrastructure & Cities – Higher profit on improvements in execution, mix and productivity
Infrastructure & Cities – Higher profit on improvements in execution, mix and productivity Key Figures Infrastructure & Cities Main developments in Q2 €bn €m • Positive book-to-bill of 1.05 on tough comps Orders 1) Revenue 1) Profit 2) due to major rail orders 4.7% 7.2% • Transportation & Logistics
Slide 20: Lower volume from large orders in Europe while China shows strength
Lower volume from large orders in Europe while China shows strength Regional business split Purchasing Managers Index Q2 FY 14 Order growth y-o-y1) Index US ISM Mfg PMI Eurozone Mfg PMI 65 Expanding economy Europe/C.I.S./Africa/ME -26% 60 (therein Germany) -38% 55 53.72) 50 53.3 Americas +10% 45 40
Slide 21: Outlook Fiscal 2014
Outlook Fiscal 2014 Basic earnings per share (Net income) • We expect our markets to remain challenging in Fiscal 2014 In € At least 15% • Our short cycle businesses are not growth anticipating a sustainable recovery until 6.55 late in the fiscal year • We expect orders to exceed revenue, 5.08 for a
Slide 22: Reconciliation and Definitions for Non-GAAP Measures
Reconciliation and Definitions for Non-GAAP Measures This document includes supplemental financial measures that are or may be non-GAAP financial measures. Orders and order backlog; adjusted or organic growth rates of revenue and orders; book-to-bill ratio; Total Sectors profit; return on equity (af

Siemens — Bernstein Strategic Decision Conference 2014 on 6ix

Siemens Aktiengesellschaft — Siemens — Bernstein Strategic Decision Conference 2014

Slide 1: Siemens – Vision 2020

Slide 2: Safe Harbour Statement

Slide 3: Siemens – Vision 2020: Strategic focus

Slide 4: Stringent resource allocation for growth fields in Electrification, Automation and Digitalization

Slide 5: Unconventional Oil & Gas opportunities in North America remain very attractive

Slide 6: Acquisition of Rolls-Royce's Aero Derivative Gas Turbine business offers great value

Slide 7: Flat and market driven organization along the value chain will capture growth opportunities

Slide 8: Healthcare with higher entrepreneurial flexibility – separately managed under the Siemens umbrella

Slide 9: Siemens – Vision 2020: Value creation & Cultural change

Slide 10: Simplification leads to reduction of overhead and support function cost by ~€1bn

Slide 11: In depth analysis of businesses has led to specific conclusions

Slide 12: One Siemens Financial Framework sets the aspiration

Slide 13: Foster ownership culture through equity ownership and leadership based on shared values

Slide 14: Appendix

Slide 15: Q2 FY 2014 – Key figures

Slide 16: Energy – Performance held back by lower revenues and execution challenges

Slide 17: Healthcare – Continued excellent performance on high level despite currency headwinds

Slide 18: Industry – Profit climbs as short cycle businesses continue stabilizing

Slide 19: Infrastructure & Cities – Higher profit on improvements in execution, mix and productivity

Slide 20: Lower volume from large orders in Europe while China shows strength

Slide 21: Outlook Fiscal 2014

Slide 22: Reconciliation and Definitions for Non-GAAP Measures