Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2011)
23 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 28, 2011
Slide 1: Siemens in China – Accelerating our success
Siemens in China – Accelerating our success Mei-Wei Cheng President and CEO of Siemens Ltd., China CEO of Siemens North East Asia Capital Market Days "Emerging Markets" Shanghai, June 28, 2011 Copyright © Siemens AG 2011. 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: Siemens is significantly present and deeply rooted in China
Siemens is significantly present and deeply rooted in China Siemens China key facts in FY10 1) Total revenue of € 5.5 bn in FY10 thereof 67% Industry 21% Energy 12% Healthcare Continuous strong growth: 19% CAGR since ’05 Premier Wen visited Siemens Electrical 69 joint ventures & wholly o
Slide 4: Siemens China is led by a proven leadership team
Siemens China is led by a proven leadership team with more than 100 years working experience in China Mr. Mei-Wei Cheng President & CEO Siemens China & North East Asia 17 years working experience in China Mr. Yao Zhen Guo Ms. Ma Qing Sector Cluster Lead Energy Head of HR China & North East Asia 25 y
Slide 5: Continuous development of local talent is a key factor for our success in China
Continuous development of local talent is a key factor for our success in China Our people Our building blocks of people excellence approach Focused Development ~3,000 Live a high-performance Attract University New hires by employer programs for culture talent recruiting Siemens China per branding y
Slide 6: Siemens is well positioned in China's most attractive growth markets
Siemens is well positioned in China's most attractive growth markets CAGR 06-10 GDP Continuous GDP growth of 7-10% p.a. forecasted + 11% 2nd largest economy after USA Urban FAI ~150 cities with >1 m habitants +27% Tier 2 & 3 cities with highest growth rate Siemens markets Industrial FAI En
Slide 7: Our strategy & portfolio is addressing fundamental development needs in China
Our strategy & portfolio is addressing fundamental development needs in China 12th Five-Year Plan Key themes in Strategy and China challenges 12th Five-Year Plan portfolio Industrial efficiency & Full local value-chain productivity incl. R&D & emerging Scientific development Accelerate local innov
Slide 8: China's 12th Five-Year Plan investments will further accelerate our business success
China's 12th Five-Year Plan investments will further accelerate our business success China Planned investments until 2015 Siemens proven track record challenges Industrial automation as driver to push High speed Motor & LCI for efficiency, productivity & competitiveness West-East Gas longest Pip
Slide 9: Customer Focus: Our strong regional sales setup is benchmark
Customer Focus: Our strong regional sales setup is benchmark Our sales setup Selected key wins of last 12 months 64 regional and provincial € 36 m Shanghai Line 11 South Extension sales offices China's first inter-provincial public transportation (Shanghai-Jiangsu) HRB CC One of the fastest mass
Slide 10: Siemens manufactures products of global quality at local cost
Siemens manufactures products of global quality at local cost – for China and the World Majority-JVs and wholly-owned enterprises (#58) Siemens Shanghai Med. Equipment Established in 1992 – 833 employees 100% Siemens owned Siemens' only CT R&D and manufacturing center outside Germany. Every se
Slide 11: China is a global innovation center for Siemens
China is a global innovation center for Siemens and key pillar for SMART product development Strong local R&D setup Successful local product development 16 local R&D Centers S7-200 CN >30 14 Division R&D centers in No. 1 in China Market pipeline 2 Corporate Technology Centers with 39% share in
Slide 12: Competitive in entry level market segments – Example SMART Line HMI Panel
Competitive in entry level market segments – Example SMART Line HMI Panel SMART Line Panel positioning Situation: HMI Panel KTP 178 Targeting OEM customers producing simple Product with only little machines in textile, packaging, printing, etc. adaptations to China market needs Only <4% market
Slide 13: With our local setup & capabilities, we can react fast to changes in the market – Example NXAirS
With our local setup & capabilities, we can react fast to changes in the market – Example NXAirS Medium voltage switchgear business NXAirS – Business impact Siemens Sales >20% additional cost down Market Share quadrupled to ~10% within 3 years NXAirS powered the EXPO 2010 Platform developed
Slide 14: Siemens performance and contribution to China is widely recognized
Siemens performance and contribution to China is widely recognized "Most Respected Company in China in last decade" by Economic Observer, 2011 "Best Company Award in Green Competitiveness" by China Central Television (CCTV), 2011 Most Valued Management Model Company” by Talents Magazine, Sina.
Slide 15: Siemens China – First half year of 2011 even outperformed our strong growth
Siemens China – First half year of 2011 even outperformed our strong growth in recent years Fiscal year First half year CAGR yoy 5.3 3.1 +11% 2.4 +31% Orders 3.1 (in € bn) FY05 FY10 H1 FY10 H1 FY11 CAGR yoy 5.5 2.9 +19% 2.4 +24% Revenue 2.3 (in € bn) FY05 FY10 H1 FY10 H1 FY11 CAGR ~25,800 yoy ~24,10
Slide 16: Key take-away's
Key take-away's Siemens Center Beijing Siemens is well positioned in China's most 1 opened May 2008 attractive growth market Our strategy and portfolio is addressing fundamental 2 development needs in China; and 12th Five-Year Plan investments will further accelerate our success Siemens strong local
Slide 17: 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; Adjus
Slide 18: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) New orders and order backlog (continued) Order backlog represents an indicator for the future revenues of our Company resulting from already recognized new orders. Order backlog is calculated by adding the new orders of the current fiscal yea
Slide 19: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Return on equity (after tax), or ROE (after tax) In line with common practice in the financial services industry, Financial Services, or SFS uses return on equity (after tax), or ROE (after tax), as one of its key (after tax) profitability m
Slide 20: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) Free cash flow and cash conversion rate Siemens defines Free cash flow as Net cash provided by (used in) operating activities less Additions to intangible assets and property, plant and equipment. The IFRS financial measure most directly comp
Slide 21: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Adjusted EBITDA margins at the Sector level Siemens defines adjusted EBITDA margins on the Sector level as the ratio of adjusted EBITDA to revenue (as presented in the “Notes to Consolidated Financial Statements”). Siemens intends to maintain
Slide 22: Reconciliation and Definitions for Non-GAAP Measures (VI)
Reconciliation and Definitions for Non-GAAP Measures (VI) Limitations on the usefulness of Siemens’ supplemental financial measures The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular: With respect to new orders and order backlog
Slide 23: Revenue growth - Performance against competition Definition
Revenue growth - Performance against competition Definition Revenue growth - Performance against competition To illustrate management’s perspective on the Company’s performance against competition, Siemens compares its own revenue growth rate with the weighted average revenue growth rate of its Sect