Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Q4 2009 Earnings Presentation
31 slides from Siemens Aktiengesellschaft's earnings presentation, Dec 3, 2009
Slide 1: TAP: Building on Proven Strengths
TAP: Building on Proven Strengths Peter Löscher, President and CEO Joe Kaeser, CFO Barbara Kux, Member of the Managing Board Q4 09 and Annual Analyst Conference London, December 3, 2009 Page 1 Q4 Analyst Conference, December 3, 2009 Copyright © Siemens AG 2009. All rights reserved.
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",
Slide 3: Stringent execution in tough markets
Stringent execution in tough markets Our principles… Key takeaways FY 09 guidance achieved SG&A target delivered one year ahead of plan Increase Structural changes intensified TRANSPARENCY Orders and revenues rising sequentially capturing market shares Enforce ACCOUNTABILITY Strong Total Sectors pro
Slide 4: Siemens showing a strong year-end
Siemens showing a strong year-end Siemens (Continuing operations), in €m Q4 08 Q4 09 Change in % New orders 1) 22,205 18,747 (14) Revenue 1) 21,651 19,714 (7) Book-to-bill 1.03x 0.95x Profit Total Sectors 1,533 1,923 25 Net income 2) (2,420) (1,063) 56 Basic earnings per share 2), in € (2.85) (1.31)
Slide 5: Total Sectors performance driven by Energy and Healthcare
Total Sectors performance driven by Energy and Healthcare Sectors, in €m Q4 08 Q4 09 Change in % New orders 1) Industry 10,165 8,110 (20) Energy 7,246 6,487 (8) Healthcare 3,382 3,331 (3) Revenue 1) Industry 10,280 8,981 (13) Energy 6,749 6,761 1 Healthcare 3,118 3,142 (1) Profit Industry 841 562 (3
Slide 6: Q4 result heavily impacted by "Below the Sector line" items
Q4 result heavily impacted by "Below the Sector line"- items Q4 09 Equity Investments Q4 09 Corporate Items 2) €m €m Therein €216m -208 impairment on deferred tax assets -1,634 Includes -212 restructuring charges -114 -34 -328 -1,980 -100 -52 +34 -32 -700 NSN NSN at SEN at Other 1) Equity Corporate
Slide 7: SG&A program successfully completed one year ahead of schedule
SG&A program successfully completed one year ahead of schedule SG&A performance Relative SG&A cost development shows in P&L In % of revenue: -250bp 16.7% 14.2% -20% -16%1) €bn 12.91) €bn 13.6 12.1 -10% 10.9 10.9 Q4 4.1 -29% 2.9 Selling 8.9 Q3 3.2 -3% -19% 8.6 2.6 Q2 3.2 -22% 2.5 G&A 3.2 2.3 Q1 3.1 -
Slide 8: Continued focus on asset management secures strong cash flow
Continued focus on asset management secures strong cash flow Working capital turns back on track Capex spending tightly managed Total groups Total sectors Total groups Total sectors NWC1) Turns Capex / Depreciation 10 127% 9 8.8 130% 8.6 116% 8.2 113% 115% 8.0 110% 8 8.0 Target 7.4 110% Range 7.2 7.
Slide 9: Strong seasonal year-end finish of Free cash flow
Strong seasonal year-end finish of Free cash flow €m 4,903 3,641 3,577 2,138 Payments of ~ €1bn for settlement with German and US authorities 735 1,478 696 519 0 -801 -1,335 -548 FCF - YT D 07 -1,651 FCF - YT D 08 FCF - YT D 09 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Note: Free cash flow (FC
Slide 10: Advance payments and billings in excess may follow trend of order intake
Advance payments and billings in excess may follow trend of order intake €bn Advance payments New orders & BiE 1) 50 16 14 40 12 10 30 8 20 6 4 10 2 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 New orders Operations Group
Slide 11: Lower leverage providing confidence and flexibility in volatile financial markets
Lower leverage providing confidence and flexibility in volatile financial markets €bn Adj. net debt down due to excellent cash flow and lower pension deficit Adj. ind. Adj. ind. ND/EBITDA 1) ND/EBITDA 2) 0.72x 0.31x -2.9 6.4 -7.0 Pension deficit -4.0 -1.5 0.2 OPEB -0.6 5.2 Credit guarantees -0.3 4.1
Slide 12: Sustainability means Capital Efficiency
Sustainability means Capital Efficiency Stringent capital allocation needs top priority 200 High 180 Profiteers ROCE Siemens 160 (as reported) 1) Capital Efficiency (ROCE) 140 Top Divisions 120 FY 07: 12.7% 100 FY 08: 4.8% 80 FY 09: 6.1% 60 40 20 Target 14 – 16% 0 Substance High Growth Divisions -20
Slide 13: REIP Program secures cost savings up to €400m p.a. by 2014
REIP1)-Program secures cost savings up to €400m p.a. by 2014 Bundled real estate management Significant savings potential Real estate managed by SRE as % of total Targeted savings p.a. (€m) Siemens real estate Siemens total: 18kk m2 ~400 ~250 100% 50% 66% ~40 FY 08 FY 09 FY 11 FY 08 FY 11 FY 14 Glob
Slide 14: SCM well under way to achieve clear targets for value creation
SCM well under way to achieve clear targets for value creation Siemens-wide Global Value Sourcing Supplier Management managed volume Increase Siemens-wide managed share Increase share of Global Value Reduce number of suppliers3) by 60% by FY 10 Sourcing2) to >25% mid-term by 20% mid-term 44% 47% 29%
Slide 15: Comprehensive measures taken to ensure SCM performance in 2010 and beyond
Comprehensive measures taken to ensure SCM performance in 2010 and beyond Increasing and sustainable effect on Material Cost Productivity External Spend FY 09 Siemens-wide More rigorous SCM approach now core at Siemens managed spend (Pooled Direct, Organization built Sector Indirect Material) Manage
Slide 16: We achieved our FY 09 guidance
We achieved our FY 09 guidance FY 09 Guidance Target achievement Global GDP Revenue growth 2) growth FY 093) Growth > 2x global GDP growth 1) 0% Target -2.1% >-1.1% +13% ~ €7.5bn Total To exceed prior year level €6.6bn Sectors Target of €6.6bn profit FY 08 FY 09 Income Growth in income from from con
Slide 17: Excellent backlog going into 2010
Excellent backlog going into 2010 Strong order backlog 1) Major order wins in Q4 €bn 81 36 Industry: 13 20 subway trains to Wiener Linien, the public Industry 28 transport operator in Vienna, worth €153m 20 45 57 light rail vehicles worth €140m to San 3 Diego Metropolitan Transit System (MTS) 15 Ene
Slide 18: Well-positioned in Emerging Markets
Well-positioned in Emerging Markets Development of business in Emerging and Developing Markets (IMF Definition) 1) New Orders Revenue Emerging Markets (or Emerging and Developing Markets) will contribute 36% to the World Economy €bn €bn +12% in 2015 25.4 +19% 22.8 Siemens is well-positioned to grow
Slide 19: Profiting from demand for green solutions
Profiting from demand for green solutions Largest environmental portfolio worldwide €bn Revenue +11% 23.0 25.0 20.7 FY 08 FY 09 FY 11e Business with environmental portfolio grew 11% in FY 09 Our customers saved 210m tons CO2 with the ''green'' solutions in FY 09 1) Green product and solutions with s
Slide 20: SMART: Fully exploit opportunities in growth markets
SMART 1): Fully exploit opportunities in growth markets Objectives Examples Achieve top positions Industry in Emerging Markets Energy Automation for Long Rolling Chinese entry-level market leader Develop and produce products Engineering know-how exported to for emerging markets locally Asia and Midd
Slide 21: We actively manage our portfolio
We actively manage our portfolio Main portfolio movements in last 24 months Energy Strengthening of core businesses Building up leading position in Concentrated Solar Power Acquisition of Solel 28% stake in Archimede Strengthening of core businesses, e.g. Industry High voltage products: Majority sta
Slide 22: What we expect for 2010
What we expect for 2010 Conditions in manufacturing sector and world financial markets remain challenging After a double-digit order decline in FY 09 we expect a mid-single-digit percentage decline in organic revenue in FY 10 due to the stabilizing effect of our strong order backlog Total Sectors pr
Slide 23: Building on proven strengths, but we're not done yet
Building on proven strengths, but we're not done yet ... Financially fit Continuous strong cash flow Actively solid capital structure management and keep strong investment grade rating Narrow the gap between sector profits and net income …but continue to diligently control costs SG&A target achieved
Slide 24: TAP: Consistent execution against plan
TAP: Consistent execution against plan Reporting dates Milestones (deliverables) January 2008 New target margins for Energy and Industry Sector Q1 call and AGM Target margins for Divisions April 2008 Update on SG&A project Q2 analyst conference Start reporting in new structure July 2008 Outline new
Slide 25: Financial calendar
Financial calendar December December 3, 2009 Q4 financial report and analyst conference (London) December 8-15, 2009 Post-Q4 roadshow (London, Frankfurt, New York, Boston) January January 11, 2010 Commerzbank German Investment Seminar (New York) January 26, 2010 Q1 financial report and analyst confe
Slide 26: Siemens investor relations contact data
Siemens investor relations contact data Mariel von Drathen +49-89-636-33780 Munich Office +49-89-636-32474 Internet: http://www.siemens.com/investorrelations Email: investorrelations@siemens.com Fax: +49-89-636-32830 Page 26 Q4 Analyst Conference, December 3, 2009 Copyright © Siemens AG 2009. All ri
Slide 27: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) To supplement Siemens’ Consolidated Financial Statements presented in accordance with International Financial Reporting Standards, or IFRS, Siemens presents the following supplemental financial measures: New orders and order backlog Adjusted o
Slide 28: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) New orders and order backlog (continued) New orders are generally recognized immediately when the relevant contract becomes legally effective and binding. The only exception are orders with short overall contract terms. In this case, a separa
Slide 29: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Return on equity, or ROE In line with common practice in the financial services industry, Siemens Financial Services (SFS) uses return on equity, or ROE, as one of its key profitability measures. Siemens defines ROE as annualized Income befo
Slide 30: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) EBITDA (adjusted) and EBIT (adjusted) Siemens defines EBITDA (adjusted) as EBIT (adjusted) before amortization (which in turn is defined as Amortization and impairments of intangible assets other than goodwill) and Depreciation and impairment
Slide 31: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Limitations Associated with Siemens’ Supplemental Financial Measures The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular: With respect to adjusted or organic growth rates of