Siemens Pakistan Engineering Co. Limited · PSX:SIEM
Siemens Pakistan Engineering — Nokia Siemens Networks — Merger or Acquisition (June 2006)
29 slides from Siemens Pakistan Engineering's merger presentation, Jun 19, 2006
Slide 1: Creating a Communications Industry Powerhouse
Creating a Communications Industry Powerhouse Nokia Siemens Networks June 19, 2006
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward Looking Statements This presentation includes “forward-looking statements” and information which are not historical facts. These statements are based on the current expectations of the management of Nokia and Siemens and are naturally subject to uncertainty and changes
Slide 3: Creating a Communications Industry Powerhouse
Creating a Communications Industry Powerhouse Olli-Pekka Kallasvuo / Klaus Kleinfeld June 19, 2006
Slide 4: Key Highlights
Key Highlights ● A long-term partnership of industry leaders in the telecommunications infrastructure industry – JV structured to create value ● A new leader with the scale to win in the consolidating telecommunications industry ● Uniquely positioned within industry to win against Ericsson / Marconi
Slide 5: Significant Shareholder Value Creation
Significant Shareholder Value Creation ● Both Nokia and Siemens expect the impact of the partnership on their respective EPS, on a pro forma basis excluding the restructuring charges, to be accretive by the end of 2007 assuming a closing by January 1, 2007 ● Extensive annual cost synergies of approx
Slide 6: Creating a Communications Industry Powerhouse
Creating a Communications Industry Powerhouse Com Business Mobile Phones, Multimedia Enterprise & Networks Carrier & Enterprise Solutions Others** CY2005 Revenues: € 27.6 Bn CY2005 Revenues: € 6.6 Bn CY2005 Revenues: € 9.2 Bn* CY2005 Revenues: € 3.6 Bn* • Wireless • Wireless • Wireline • Wireline •
Slide 7: Key Structural Terms
Key Structural Terms ● 50:50 Joint Venture ● Operational headquarters in Helsinki, with strong presence in Munich* ● Management: selection based on “best person for the job” ● Consolidation by Nokia, equity accounting by Siemens * Incorporated in the Netherlands 7
Slide 8: Overview of Management
Overview of Management ● CEO ● CFO ● Simon ● Peter Beresford-Wylie Schönhofer 8
Slide 9: A Winner in the Converging Communications Industry
A Winner in the Converging Communications Industry Simon Beresford-Wylie
Slide 10: Winning Combination
Winning Combination y Partnership of leaders y Great heritage – aligned values – eye on the future y Immediate strength – scale and scope y Global presence – deep customer relationships y Superior R&D – innovation leader – strong portfolio y Compelling customer benefits – end-to-end solutions y Exte
Slide 11: The Opportunity
The Opportunity NOKIA SIEMENS
Slide 12: Opportunity is Large
Opportunity is Large End-user market trends Operator needs Capex and Opex More Connections 3 Converging Efficiency wireless/wireline market 3 High-performing & Comprehensive More Applications cost-efficient Solutions infrastructure More Usage 3 Opportunities in Strong Partners operator services €130
Slide 13: Scale & Reach
Scale & Reach NOKIA SIEMENS
Slide 14: Strong Starting Position
Strong Starting Position* Strong customer / installed base >300 wireless customers and >300 wireline customers #2 in Wireless >700 MM subs installed base Powerful end-to-end Convergence #3 in Wireline Offering Including broadband access, VoIP, transport, wireline switching, carrier ethernet #2 in Te
Slide 15: A New Leader With Scale to Win
A New Leader With Scale to Win Carrier Business, 2005 Revenues (€ Bn) 18 17.2 16.2 15.8 16 14 12 10 8 6.7 6 5.1 4.6 4.6 3.6 4 2 0 Alcatel & Ericsson & Nokia Nortel Cisco NEC Motorola Huawei Lucent* Marconi Siemens Networks** * Excludes Thales and enterprise business ** Unaudited calendarised numbers
Slide 16: Top Positioning in Key Carrier Markets
Top 3 Positioning in Key Carrier Markets* Wireless Networks Carrier Services** Wireline Networks incl. Services incl. Services Ericsson / Alcatel & Marconi 14% Lucent 17% Others 20% Ericsson / Marconi 26% Others 57% Nokia Siemens Motorola 7% Networks 13% Others 53% Cisco 10% Nokia Siemens Nortel 8%
Slide 17: Deep Customer Relationships
Deep Customer Relationships 17
Slide 18: Broad Portfolio . . . Innovation Strength
Broad Portfolio . . . Innovation Strength Service Core and Transport and IP Radio Access Applications Networking • GSM/EDGE • WCDMA / HSPA • Mobile and fixed soft • DWDM • TD-SCDMA switching • Next Gen SDH • WiMAX • Mobile Packet Core • Microwave • LTE • IP Multimedia • Metro Ethernet 3rd party Subs
Slide 19: Delivering Compelling Customer Benefits
Delivering Compelling Customer Benefits ● Leader in mobile ● Leader in convergence and 'next generation' solutions ● Strength and depth in services offering ● Strength in end-to-end ● Strength in R&D and innovation ● Global presence - we're everywhere our customers want us to be 19
Slide 20: Positioned for Growth
Positioned for Growth NOKIA SIEMENS
Slide 21: Leading Market Positions in Growth Segments
Leading Market Positions in Growth Segments Market CAGR Segment 2005-2011 Î WCDMA ~25% Î Breakthrough product offering Î Services ~9% Î Strong regional service hubs with full competence portfolio Î Emerging Markets ~8% Î Increase established strong market position Î WiMax / LTE / 4G IMS / VoIP Fast
Slide 22: Creating Value
Creating Value NOKIA SIEMENS
Slide 23: Significant Value Creation Through Cost Synergies
Significant Value Creation Through Cost Synergies Annual cost synergies of €1.5 Bn by 2010 90%+ to be achieved in first 3 years COGS Savings R&D Savings • Procurement savings • Harmonization of • Improved Services product platforms utilization rates • Optimised R&D structure • Streamlined processes
Slide 24: Restructuring and Integration Costs
Restructuring and Integration Costs ● Total restructuring and integration costs of approximately €1.5 Bn – Includes non-headcount related charges, such as IT systems and retention – Headcount adjustments from synergies in the range of 10-15% – Over 75% of costs to be incurred within 2 years after cl
Slide 25: Winning Combination
Winning Combination y Partnership of leaders y Great heritage – aligned values – eye on the future y Immediate strength – scale and scope y Global presence – deep customer relationships y Superior R&D – innovation leader – strong portfolio y Compelling customer benefits – end-to-end solutions y Exte
Slide 26: Creating a Communications Industry Powerhouse
Creating a Communications Industry Powerhouse Olli-Pekka Kallasvuo / Klaus Kleinfeld June 19, 2006
Slide 27: Shared Culture and Values
Shared Culture and Values 3 Customer First 3 Win Through People 3 Shape the Future 3 World Class Company 3 Performance 27
Slide 28: Superior Value Enhancement For All Stakeholders
Superior Value Enhancement For All Stakeholders ● Both Nokia and Siemens expect the impact of the partnership on their respective EPS, on a pro forma basis excluding the restructuring charges, to be accretive by the end of 2007 assuming a closing by January 1, 2007 ● Estimated cost synergies of €1.5
Slide 29: Connecting People With a Global Network of Innovation
Connecting People With a Global Network of Innovation Connecting People With a Global Network of Innovation 29
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