Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Investor Day (February 2008)

62 slides from Siemens Aktiengesellschaft's investor day presentation, Feb 28, 2008

  1. Slide 1: Siemens Healthcare – Imaging & IT Division

    Siemens Healthcare – Imaging & IT Division Bernd Montag, CEO Imaging & IT Divison Capital Market Day Siemens Healthcare Munich, February 28, 2008 Copyright © Siemens AG 2008. All rights reserved.

  2. 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,”

  3. Slide 3: Customers' Decisions are both Product- and Solution-Oriented

    Our Customers’ Decisions are both Product- and Solution-Oriented Workflow-oriented IT Diagnosis Prevention and Early Therapy Care Detection In Vitro In Vivo Diagnostics Diagnostics (IVD) (Imaging) Diagnostics Imaging & IT Workflow & Solutions Jim Reid-Anderson Bernd Montag Tom Miller Radiography/Ang

  4. Slide 4: Customers' Decisions are both Product- and Solution-Oriented

    Our Customers’ Decisions are both Product- and Solution-Oriented Workflow-oriented IT Diagnosis Prevention and Early Therapy Care Detection In Vitro In Vivo Diagnostics Diagnostics (IVD) (Imaging) Imaging & IT Bernd Montag Radiography/Angiography Computed Tomography Magnetic Resonance Molecular Imag

  5. Slide 5: Siemens Healthcare Imaging & IT Division

    Siemens Healthcare Imaging & IT Division ƒ Sales: €7.1bn ƒ Margin: 15% ƒ Employees: 27,000 worldwide ƒ R&D spent: > €700m Copyright © Siemens AG 2008. All rights reserved. Page 5 February 28, 2008 Capital Market Day Siemens Healthcare

  6. Slide 6: Computed Tomography

    Computed Tomography +5% market share (2002-07) Innovation leader Copyright © Siemens AG 2008. All rights reserved. Page 6 February 28, 2008 Capital Market Day Siemens Healthcare

  7. Slide 7: Angio & X-Ray

    Angio & X-Ray #1 market position Innovation leader Copyright © Siemens AG 2008. All rights reserved. Page 7 February 28, 2008 Capital Market Day Siemens Healthcare

  8. Slide 8: Magnetic Resonance

    Magnetic Resonance We are ... #1 market position Innovation leader Copyright © Siemens AG 2008. All rights reserved. Page 8 February 28, 2008 Capital Market Day Siemens Healthcare

  9. Slide 9: Molecular Imaging

    Molecular Imaging WeBaseline are ...study day 7 of cancer therapy day 14 of cancer therapy 90 days post baseline Day 14 Day 14 #1 market position Innovation leader Copyright © Siemens AG 2008. All rights reserved. Page 9 February 28, 2008 Capital Market Day Siemens Healthcare

  10. Slide 10: Ultrasound

    Ultrasound Significant upside Innovation leader Copyright © Siemens AG 2008. All rights reserved. Page 10 February 28, 2008 Capital Market Day Siemens Healthcare

  11. Slide 11: Imaging: We are #1 in a dynamic business

    Imaging: We are #1 in a dynamic business ... Angio Computed Magnetic Molecular Ultrasound & X-Ray Tomography Resonance Imaging #1 position +5% mkt. share #1 position 1# position Significant upside Innovation Innovation Innovation Innovation Innovation leader leader leader leader leader Copyright © S

  12. Slide 12: Unique competitive advantage by integration

    We are #1 in a dynamic business ... ... creating a unique competitive advantage by integration #1 position in healthcare IT Healthcare IT with syngo and Soarian Angio Computed Magnetic Molecular Ultrasound & X-Ray Tomography Resonance Imaging #1 position +5% mkt. share #1 position 1# position Signif

  13. Slide 13: Healthcare IT

    Healthcare IT #1 position in healthcare IT with syngo and Soarian® Copyright © Siemens AG 2008. All rights reserved. Page 13 February 28, 2008 Capital Market Day Siemens Healthcare

  14. Slide 14: Imaging & IT: #1 in a dynamic business

    Imaging & IT: We are #1 in a dynamic business creating a unique competitive advantage by integration #1 position in healthcare IT Healthcare IT with syngo and Soarian Angio Computed Magnetic Molecular Ultrasound & X-Ray Tomography Resonance Imaging #1 position +5% mkt. share #1 position 1# position

  15. Slide 15: Continuously outperforming competition

    Continuously outperforming competition: The fastest growing installed base in the industry #1 position in healthcare IT Healthcare IT with syngo and Soarian Angio Computed Magnetic Molecular Ultrasound & X-Ray Tomography Resonance Imaging .a. . . p .a. .a. p.a p.a +8% %p %p % +10 % +10 +12 +10 #1 po

  16. Slide 16: Uniquely positioned for future growth

    Uniquely positioned for future growth: Clear leader in number of IT installations and global presence #1 position in healthcare IT Healthcare IT with syngo and Soarian Angio Computed Magnetic Molecular 40 Ultrasound Siemens & X-Ray Tomography Resonance Imaging Number of Countries 30 .a. . . p .a. .a

  17. Slide 17: Initial system business generates significant aftersales revenue

    Initial system business generates significant aftersales revenue Typical revenue split* Initial and cumulated aftersales revenue Systems: • CT 40-60 % • MRI Imaging Systems Sales • PET-CT Aftersales Business • X-Ray • US Aftersales business: • Service 40-60 % • Application upgrades • Hardware extens

  18. Slide 18: Aftersales business accounts for greater share of sales in IT

    Aftersales busines accounts for the greater share of sales in IT Typical revenue split* Initial and cumulated aftersales revenue Software Licensing: • Soarian 20-25 % • syngo Software Licensing Aftersales Business Services: 75-80 % • Customization • Upgrades • Hosting • Consulting • Training '02 '03

  19. Slide 19: Highlights of our strong track record

    Highlights of our strong track record Development of sales from 2002 to 2007 . p .a . p.a . p.a % % 1 +1 0% +9 +1 Angio & X-Ray Computed Tomography Magnetic Resonance Copyright © Siemens AG 2008. All rights reserved. Page 19 February 28, 2008 Capital Market Day Siemens Healthcare

  20. Slide 20: Growth in top and bottom line despite US downturn

    Growth in top and bottom line despite temporal down turn in the US Global sales and profit growth I&IT (in €) + 6% ƒ 2007 US imaging equipment market: Sales ±0% Sales ƒ 2007 US imaging equipment market: Orders -20% >10% Profit 2006 2007 Sales growth on currency comparable basis Copyright © Siemens A

  21. Slide 21: The foundation of our continued success

    The foundation of our continued success Imaging & IT focus Customers´ impulse Innovation Leadership spend to Excel Workflow Excellence spend to Save Cost Leadership spend to Catch-up Copyright © Siemens AG 2008. All rights reserved. Page 21 February 28, 2008 Capital Market Day Siemens Healthcare

  22. Slide 22: The foundation of our continued success

    The foundation of our continued success Imaging & IT focus Customers´ impulse Innovation Leadership spend to Excel Workflow Excellence spend to Save Cost Leadership spend to Catch-up Copyright © Siemens AG 2008. All rights reserved. Page 22 February 28, 2008 Capital Market Day Siemens Healthcare

  23. Slide 23: The history of medical imaging: Evolution and Revolution

    The history of medical imaging: Evolution and Revolution Molecular Imaging Magnetic Resonance Clinical impact Computed Tomography Ultrasound X-Ray 1895 1950's 1970's 1980's 1990's 2000's Copyright © Siemens AG 2008. All rights reserved. Page 23 February 28, 2008 Capital Market Day Siemens Healthcare

  24. Slide 24: Innovation is the rule of the game

    Innovation is the rule of the game Example: Computed Tomography Dual Source CT Slices ƒ1 s t 4 16 64 DS CT Clinical impact Rotation speed ƒ1 s ƒ1 s ƒ1 s ƒ1 s ƒ1 st Multislice CT t t t t 2s 1s 0.75s 4- Ca 16 0 64 s li r - M -s ce dia slic HU lic e c CT C e CT X-r C Spiral CT T ay T ƒ1 s tu Head Lung

  25. Slide 25: Innovation is the rule of the game

    Innovation is the rule of the game Example: Computed Tomography Dual Source CT Slices 4 16 64 2,7 Clinical impact les x ,3 12% Multislice CT Sa fit x 7 are + Rotation speed 1s ƒ 0.75s 2s Pro et sh ƒ ark 8 99 ƒ M e 1 Spiral CT in c Head Lung sBody Axial CT 1970 1990 1998 2005 Copyright © Siemens AG 2

  26. Slide 26: The latest innovation step change: Dual Energy

    The latest innovation step change Dual Energy with SOMATOM Definition Kidney Stone Kidney Stone Uric Acid Stone Calcium Oxalate Stone Dual Energy allows tissue characterization Copyright © Siemens AG 2008. All rights reserved. Page 26 February 28, 2008 Capital Market Day Siemens Healthcare

  27. Slide 27: The latest innovation step change: Dual Energy

    The latest innovation step change Dual Energy with SOMATOM Definition Dual Energy allows direct visualization of vessels in 5 seconds Courtesy of University Hospital of Munich – Grosshadern/Munich, Germany Copyright © Siemens AG 2008. All rights reserved. Page 27 February 28, 2008 Capital Market Day

  28. Slide 28: The latest innovation step change: Dual Energy

    The latest innovation step change Dual Energy with SOMATOM Definition at ion v inno e t - hav s Mu ƒ +11% market share from 2000 to 2007 ƒ +18% sales in high-end CT in 06/07 ƒ Siemens unique Copyright © Siemens AG 2008. All rights reserved. Page 28 February 28, 2008 Capital Market Day Siemens Health

  29. Slide 29: Latest innovations directly convert into business

    Our latest innovations directly convert into business >80% of all ordered products are younger than 3 years 52% 29% 15% 4% introduced longer introduced up to introduced up to introduced up to than 4 years ago 4 years ago 3 years ago 2 years ago Based on new orders 2007 Copyright © Siemens AG 2008. A

  30. Slide 30: At RSNA we continued to widen the gap

    At RSNA in Chicago (Nov. 2007) we continued to widen the gap Biograph with HD PET Acuson S2000 Artis Zeego e e niqu ique niqu u un s u ns s n me e n eme S ie S iem S i MAGNETOM Verio SOMATOM Definition AS que e un i niqu ns u me e ns ie m S Sie Copyright © Siemens AG 2008. All rights reserved. Page

  31. Slide 31: Our innovation pipeline guarantees future success

    And our innovation pipeline guarantees future success REMIND MR-PET Push-button imaging Data Neuro extrac- Sub-mS Cardiac CT degene- tion Silicon ultrasound rative Staffing diseases shortages Dose reduction ƒ User independent ƒ Isotropic 3D ƒ Instant Scan Copyright © Siemens AG 2008. All rights rese

  32. Slide 32: Our innovation pipeline guarantees future success

    And our innovation pipeline guarantees future success REMIND MR-PET Push-button imaging Data Neuro extrac- Sub-mS Cardiac CT degene- tion Silicon ultrasound rative Superior specificity biomarkers Staffing diseases shortages Dose reduction ƒ Targetedƒ User independent ƒ Disease ƒspecific Isotropic 3D

  33. Slide 33: The foundation of our continued success

    The foundation of our continued success Imaging and IT focus Customers´ impulse Innovation Leadership spend to Excel Workflow Excellence spend to Save Cost Leadership spend to Catch-up Copyright © Siemens AG 2008. All rights reserved. Page 33 February 28, 2008 Capital Market Day Siemens Healthcare

  34. Slide 34: Workflow Excellence

    Workflow Excellence Recovery of reimbursement cuts Levers for efficiency improvement Reimbursement per patient Patients per day -25 % ƒ Increasing flexibility of systems ƒ Avoiding unnecessary procedures ƒ Improving capacity utilization Cuts, e.g. from DRA Number of patients Copyright © Siemens AG 2

  35. Slide 35: Spend to save: Increasing flexibility

    “Spend to save”: Increasing flexibility Example: MAGNETOM Verio – For obese and claustrophobic patients at ion nov ein t - hav s Mu ƒ 3 years ahead with open-bore MR ƒ +14% market share from 2002 to 2007 ƒ #1 position in Magnetic Resonance 40 ƒ Field strengh: 3T % of obesity 30 20 10 ƒ Bore diameter

  36. Slide 36: Spend to save: Avoiding procedures

    “Spend to save”: Avoiding procedures Example: syngo DynaCT – No control CT during interventions at ion v inno e t - hav s Mu ƒ 2 years ahead in DynaCT technology ƒ +7% market share from 2002 to 2007 ƒ #1 position in Angio & X-ray worldwide Without Transport Transport Transport Continued DynaCT Inter

  37. Slide 37: The biggest lever for driving efficiency: Healthcare IT

    The biggest lever for driving efficiency Healthcare IT Medical environment Relevant market segments Consumer ƒ "HowComponent long has Mr. Parker Market Size beenLocal waiting?" Portal CAGR or global PHR* Commercial Insurance Physician Practices/ ƒ "Where´s Mr. Parker´s Physician X-Ray?" USA: $40 m L

  38. Slide 38: An everyday hospital scenario

    Didn´t you also experience at least of these situations? An everyday hospital scenario ... What medication does Parker get? What can we bill Parker? Where´s a free bed for Parker? Copyright © Siemens AG 2008. All rights reserved. Page 38 February 28, 2008 Capital Market Day Siemens Healthcare

  39. Slide 39: Integration is key to current AND future success

    Integration is key to current AND future success Patient process in healthcare institutions admit consult order plan perform process report distribute consult discharge bill administrative cycles diagnostic and therapeutic cycles administrative cycles Soarian syngo integrated Soarian "What did we bi

  40. Slide 40: Integrating the whole enterprise with Soarian

    Integrating the whole enterprise with Soarian ƒ 285 beds, >1000 nurse users and 400 physician users ƒ Using Clinical Access, Common Clinicals, Clinical Team, Workflow Engine (9 workflows) ƒ Integrated with Siemens Pharmacy, Siemens MAK, Meditech Lab, and Soarian HIM ƒ WEB native (run‘s on anything w

  41. Slide 41: SOARIAN outcomes

    SOARIAN outcomes Example: Occurrence of nosocomial pressure ulcers 7% 6% 5% 4.93% 4.00% 4% 3% 2% 1.80% 1% 0% September NDNQI September 2006 Benchmark 2007 Pre-workflow Post-workflow Î USA: Nosocomial infections in total account for >20bn US$ associated costs Copyright © Siemens AG 2008. All rights r

  42. Slide 42: Implementation of Soarian Plan of Care

    The latest step: Implementation of Soarian Plan of Care on Feb. 20th 2008 Copyright © Siemens AG 2008. All rights reserved. Page 42 February 28, 2008 Capital Market Day Siemens Healthcare

  43. Slide 43: Integrated healthcare IT goes beyond the enterprise

    Integrated healthcare IT goes beyond the enterprise Siemens Information Systems Center (SISC) ƒ 169m+ daily health care transactions ƒ 99.998%+ network availability ƒ 2,400+ hosted customer environments ƒ Largest medical grade network of its kind ƒ Managing med. data of >40% of all Americans Copyrig

  44. Slide 44: Soarian: Our investment pays back

    Soarian: Our investment pays back ƒ The only workflow engine in the market ƒ The only WEB native platform Hospital Portal ƒ The only future proof Service Oriented Architecture Global Patient Admin/Scheduling Clinical ClinicalITIT Financial IT Depart- Depart- RIS/PACS mentals mentals Electronic Patie

  45. Slide 45: The foundation of our continued success

    The foundation of our continued success Imaging and IT focus Customers´ impulse Innovation Leadership spend to Excel Workflow Excellence spend to Save Cost Leadership spend to Catch-up Copyright © Siemens AG 2008. All rights reserved. Page 45 February 28, 2008 Capital Market Day Siemens Healthcare

  46. Slide 46: Cost Leadership: Allowing new customers to catch-up

    Cost Leadership: Allowing new customers to catch-up Copyright © Siemens AG 2008. All rights reserved. Page 46 February 28, 2008 Capital Market Day Siemens Healthcare

  47. Slide 47: Cost Leadership: Market segmentation

    Cost Leadership: Allowing new customers to catch-up Market segmentation High M1 performance (Research) Throughput M2 (Reimbursement) Low M3 investment (Cost) Basic M4 medical care (Cost) Î Example: Imaging in Asia China: 1 MR per 1,000,000 inhabitans Japan: 56 MR per 1,000,000 inhabitans Copyright ©

  48. Slide 48: Bringing imaging to new customer groups: SOMATOM Spirit

    Bringing imaging to new customer groups Example: SOMATOM Spirit – high-end/low-cost CT da ble af for ost m ƒ Youngest entry-level CT in the world ƒ 35% market share in entry-level CT ƒ #1 position in entry-level CT worldwide Copyright © Siemens AG 2008. All rights reserved. Page 48 February 28, 2008

  49. Slide 49: Bringing imaging to new customer groups: MAGNETOM ESSENZA

    Bringing imaging to new customer groups Example: MAGNETOM ESSENZA – high-end/low-cost MR da ble af for ost m ƒ 1st super conductive magnet from China ƒ Complete range of clinical applications ƒ Certified for worldwide delivery Copyright © Siemens AG 2008. All rights reserved. Page 49 February 28, 20

  50. Slide 50: Rigorous cost down

    Rigorous cost down Example: MAGNETOM ESSENZA Innovation for price- performance optimization Siemens Innovators Cost down 50% overall from local cost down suppliers and labor SMMR Cost down contracting e.g. European suppliers to move to LCC Currently 5 suppliers Copyright © Siemens AG 2008. All right

  51. Slide 51: LCC program: Significant share of R&D and supply chain in Asia

    Imaging & IT: LCC program Significant share of R&D and supply chain in Asia R&D US RV .a . %p >1 5 SUGK SVXT MR AX Korea CT Kyongju-si CO 2006 2007 2008 China growth in headcount SMMR SSME Shanghai, Wuxi, Manufacturing Shenzhen, Suzhou MI India Singapore . % p .a Goa, >2 5 Bangalore EDB Biopolis CO

  52. Slide 52: LCC program: Significant share of R&D and supply chain in Asia

    Imaging & IT: LCC program Significant share of R&D and supply chain in Asia Production volume US RV . % p .a >4 0 SUGK SVXT MR AX Korea CT Kyongju-si CO 2006 2007 2008 China from China SMMR SSME Shanghai, Wuxi, Purchasing volume Shenzhen, Suzhou MI India Singapore . % p .a Goa, >2 5 Bangalore EDB Bi

  53. Slide 53: LCC program: significantly ahead of projections

    LCC program: significantly ahead of projections Manufactured units from China Computed Tomography at SSME RV 36% 40% MR AX CT 15% CO 2005/06 Act Original* China *as of FY2007 Plan 2010 SMMR SSME Shanghai, Magnetic Resonance Shenzhen at SMMR 23% 25% 10% 2005/06 Act Original* *as of FY2007 Plan 2010 C

  54. Slide 54: LCC program: one aspect of growing productivity

    LCC program: just ONE aspect of our continued thrive to grow productivity Overall productivity growth 8 % p.a. + 03/04 04/05 05/06 06/07 Copyright © Siemens AG 2008. All rights reserved. Page 54 February 28, 2008 Capital Market Day Siemens Healthcare

  55. Slide 55: The foundation of our continued success

    The foundation of our continued success Imaging and IT focus Customers´ impulse Innovation Leadership spend to Excel Workflow Excellence spend to Save Cost Leadership spend to Catch-up Copyright © Siemens AG 2008. All rights reserved. Page 55 February 28, 2008 Capital Market Day Siemens Healthcare

  56. Slide 56: One movie showing it all: Echo-in-a-heartbeat

    One movie showing it all ... ;-) Echo-in-a-heartbeat Copyright © Siemens AG 2008. All rights reserved. Page 56 February 28, 2008 Capital Market Day Siemens Healthcare

  57. Slide 57: Focus and deliver

    Focus and deliver Driving profitable growth and cash returns Getting the most out of the integrated diagnostics company Achieving best-in-class cost position incl. SG&A reduction Innovating for fast growth and competitiveness + + + Drive organic growth above market growth Deliver target margin Conve

  58. Slide 58: Siemens – Answers for life

    SIEMENS Answers for life.

  59. Slide 59: Reconciliation and Definitions for Non-GAAP Measures (I)

    Reconciliation and Definitions for Non-GAAP Measures (I) Group profit from Operations is reconciled to Income before income taxes of Operations under Reconciliation to financial statements on the table Segment Information. See our Financial Publications at our Investor Relations website under www.si

  60. Slide 60: Reconciliation and Definitions for Non-GAAP Measures (II)

    Reconciliation and Definitions for Non-GAAP Measures (II) Average calculation for CE*: Year-to-Date Q1 2 Point average: (CE ending Q4 Prior year + CE ending Q1) / 2 Q2 3 Point average: (CE ending Q4 Prior year + CE ending Q1 + CE ending Q2) / 3 Q3 4 Point average: (CE ending Q4 Prior year + CE endin

  61. Slide 61: Reconciliation and Definitions for Non-GAAP Measures (III)

    Reconciliation and Definitions for Non-GAAP Measures (III) Our capital structure target is based on an Adjusted industrial net debt divided by EBITDA (adjusted). For the calculation of Adjusted industrial net debt, we subtract from Net debt (defined as Long-term debt plus Short-term debt and current

  62. Slide 62: Siemens Investor Relations Team

    Siemens Investor Relations Team Michael Sen +49-89-636-33780 Florian Flossmann +49-89-636-34095 Sabine Groß +49-89-636-35755 Dr. Martin Meyer +49-89-636-33693 Christof Schwab +49-89-636-32677 Dr. Gerd Venzl +49-89-636-44144 Susanne Wölfinger +49-89-636-30639 Webpage: http://www.siemens.com/investorr

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