Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (February 2006)
28 slides from Siemens Aktiengesellschaft's investor day presentation, Feb 23, 2006
Slide 1: Siemens VDO: Solid Progress in a Challenging Environment
Siemens VDO: Solid Progress in a Challenging Environment Wolfgang Dehen, Group President and CEO Capital Market Days February 23-24, 2006
Slide 2: Safe harbor statement
Safe harbor statement This presentation contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified either orally or in writing by words as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estima
Slide 3: A merger that pays off: Highlights from the last 5 years at Siemens VDO
A merger that pays off: Highlights from the last 5 years at Siemens VDO In difficult market conditions, Siemens VDO is delivering above its target margin and securing its long-term success − Profitable organic and exogenous growth in all major regions − Portfolio: 95% of our products are in positi
Slide 4: We have a strong organization focused on our customers
We have a strong organization focused on our customers Customers Key Account Management Chassis & Interior & Service & Powertrain Carbody Infotainment Special Solutions Gasoline Systems Restraint Systems, Information Systems Special OEM & Diesel Systems Safety Electronics Passenger Cars Infotainment
Slide 5: We improved our performance for our customers in all crucial fields
We improved our performance for our customers in all crucial fields Logistics Quality Sales R&D Production CSS* CSS* FY04 FY04 CSS* CSS* FY02 FY02 +1.5 1.41 1.38 1.38 1.41 1.35 1.35 1.13 1.13 +1.0 1.08 1.08 1.09 1.09 1.06 1.06 0.91 0.91 0.63 0.63 +0.5 Equal to 0.17 0.17 0 the best In the survey the
Slide 6: Heading for "zero ppm" quality rates
Heading for "zero ppm" quality rates 167 ppm (parts per million) 89 70 30 6-months average FY 2002 FY 2003 FY 2004 FY 2005 Siemens Capital Market Days, February 23-24, 2006 Page 6
Slide 7: We are well on track to reach next CMMI level
We are well on track to reach next CMMI level Survey of assessment in Siemens VDO CMMI Capability Maturity Model Integration 3 Division 1: 3.00 Division 2: 3.00 Division 3: 2.75 2 Division 4: 2.75 Division 5: 2.50 Division 6: 2.50 Division 7: 2.25 1 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006E Siemens C
Slide 8: Our high-cost reduction rates enable us to still outplay rising OEM price pressure
Our high-cost reduction rates enable us to still outplay rising OEM price pressure R&D Total cost reduction rate: 9% on average 10% Admin. & Others 15% Material 50% Production OEM price reduction 3% - 4% p.a. 25% FY 2002 FY 2003 FY 2004 FY 2005 Total cost reduction FY 2002 - 2005: €3.4 bn Siemens Ca
Slide 9: We deliver what we promise: Solid progress in a challenging environment
We deliver what we promise: Solid progress in a challenging environment €9.6 bn €9.0 bn €8.5 bn €8.4 bn €5.7 bn* 6.6% SV target margin 6.2% 5 - 6% 5.0% 0.8% Sales €630 mn Group Profit €562 mn EVA €418 mn €65 mn Group Profit margin % - €261 mn * including VDO May-September 2001 - 4.6% FY 2001 FY 2002
Slide 10: Our strategic direction and systematic approach ensure continuous success
Our strategic direction and systematic approach ensure continuous success Regions: Customers: Optimize global R&D and Regional Maintain / increase market share manufacturing footprint portfolio in Europe and Americas portfolio Strategic focus on Asia Become a "Global Keiretsu" Customer Karos
Slide 11: We are diversifying our customer base
We are diversifying our customer base DC Group Top 3 2005 BMW Group = 38% of Top 5 Ford Group sales = 53% of VW Group sales GM Group Top 10 PSA Group = 68% of sales Renault Group Hyundai Group Honda Group Fiat Group Others Siemens Capital Market Days, February 23-24, 2006 Page 11
Slide 12: Siemens VDO is growing faster than the market
Siemens VDO is growing faster than the market World vehicle production 2005: Moderate growth on high level Siemens VDO* Market** Light vehicle Million production Asia + 11% + 6.9% units Heavy vehicle production NAFTA + 26% - 0.3% World Europe - 0.5% - 0.5% +9.8% +2.2% World + 6.7% + 2.7% +2.7% * Sal
Slide 13: Our target: Regional balance to improve our competitiveness
Our target: Regional balance to improve our competitiveness Sales to region Europe NAFTA Asia-Pacific Target Improve regional split by increasing sales split 33% 33% 33% in Asia-Pacific 1% Others Major improvements have been made in FY 2005 61% 27% 10% NAFTA business 2% Others 21% 7% Bigger market s
Slide 14: A powerful product portfolio covering the most attractive market segments
A powerful product portfolio covering the most attractive market segments Divisions under improvement Avg. market profitability (in %, 2004) SV coverage Advanced propulsion 9 - 10 3 Infotainment 7 - 12 3 "Market entry" Below Active safety 6-8 3 divisions peer group profitability Passive safety 6-8 3
Slide 15: We continuously review and streamline our portfolio: M & A strategy
We continuously review and streamline our portfolio: M & A strategy Technology / Product Mergers & Acquisitions Regional Portfolio Customer Portfolio Portfolio 2001 Mannesmann VDO 2004 Huntsville Electronics 2004 IDM 2004 Elcar 2005 e-stop 2005 Bontec / Autonet 2005 AEC Siemens Capital Market Days,
Slide 16: We continuously review and streamline our portfolio: Divestments
We continuously review and streamline our portfolio: Divestments Technology / Product Divestments Regional Portfolio Customer Portfolio Portfolio Exit of wiring 2001 harness production Sale of air outlet 2001 manufacturing to Reum Sale of Hydraulik-Ring to 2002 Hilite Disposal of bowden cables 2003
Slide 17: The advantage of automotive electronics: Good prospects for suppliers
The advantage of automotive electronics: Good prospects for suppliers on a long-term basis Automotive supplier market average growth rate for entire supplier market: 3.4% Electrics / electronics components & systems 720 +3.4% CAGR 587 513 417 356 +6.4% Electronics content 304 230 outgrows vehicle
Slide 18: Global trends offer excellent opportunities for Siemens VDO
Global trends offer excellent opportunities for Siemens VDO: We care for sustainable mobility Trends Shift of Growing Growing need Shortening Increasing economic gravity demand for for environ- of natural mobility amongst regions safety & security mental care resources Comfort/Safety Comfort Passive
Slide 19: We are realizing the car of the future - today
We are realizing the car of the future - today Trends Drivers Typical applications "Zero accident" Customer demand for pro.pilot safer vehicles - a network of driver Regulations to enforce assistance systems driver and pedestrian protection "Zero emission" Increasing fuel costs and Adv
Slide 20: Our vision of "Zero accidents": Advanced Driver Assistance Systems (ADAS)
Our vision of "Zero accidents": Advanced Driver Assistance Systems (ADAS) 94 % of all road traffic accidents could be prevented by intelligent assistants Siemens VDO is providing a variety of products to enhance safety: − Radar technology for blind spot detection, Lidar technology for adaptive cru
Slide 21: Towards "Zero emissions": Advanced propulsion systems
Towards "Zero emissions": Advanced propulsion systems Siemens VDO's systems know-how from tank to tail ensures efficient solutions for entire powertrain − Additional advantage through joint venture with EMITEC on exhaust treatment Siemens VDO drives progress by improving existing technologies to
Slide 22: "Always on": The latest infotainment technologies embedded in modular platforms
"Always on": The latest infotainment technologies embedded in modular platforms CESAR fulfills market demand for an ergonomic cockpit with the latest safety features and infotainment technology for drivers and passengers CESAR satisfies OEM customers' need for modular, upgradeable cockpits that
Slide 23: Socio-economic changes and varying requirements determine automotive development
Socio-economic changes and varying requirements determine automotive development Happy Driving EU 25 Evolution $7 per Gallon Case China Young Silver Midlife Car Independence Car Family Car Shift of economic gravity Trend towards small Relative high price Driving dynamics amongst regions and ru
Slide 24: "Being in the sweet spot": We cover the top 5 Hottest Automotive Electronics Systems
"Being in the sweet spot": We cover the top 5 "Hottest Automotive Electronics Systems" for 2010 Osram SV 3 (3) 3 3 3 "Hot Product Factor" 10.0 (spectacular future 9.0 growth rates) 8.0 7.6 7.0 5.8 6.0 5.0 4.0 3.7 3.2 3.0 2.7 2.0 #1 #2 #3 #4 #5 1.0 0.0 Lane Depature Adaptive Front Tire Pressure Passi
Slide 25: Our competitive advantage: Our focus on fast growing automotive electronics
Our competitive advantage: Our focus on fast growing automotive electronics Bosch Denso Visteon Delphi Siemens VDO Sales FY 2004* (€ bn) 25,273** 21,113 15,293 23,461 9,001 Profit Margin % 7.2%*** 7.8% -2.2% 1.6% 6.2% SV is among the most profitable suppliers... Regional Split All are still focused
Slide 26: Heading for the future
Heading for the future Execute Asia strategy to expand business in China, Korea, Japan and India Boost business with innovations, e.g. Advanced Driver Assistance Systems Growth Leverage cross-group opportunities to extend business, e.g. Telematics Continuously optimize product and innovation
Slide 27: 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 Reports/Fiscal 2006, Quarter 1 / Financial Statements” at our Investor Relation
Slide 28: Siemens Investor Relations Team
Siemens Investor Relations Team Marcus Desimoni +49-89-636-32445 Frank Heffter +49-89-636-34095 Irina Pchelova +49-89-636-33693 Christina Schmöe +49-89-636-32677 Susanne Wölfinger +49-89-636-30639 Webpage: http://www.siemens.com Investor Relations e-mail: investorrelations@siemens.com Fax: +49-89-63