Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — DB German & Austrian Corporate Conference 2009
20 slides from Siemens Aktiengesellschaft's conference presentation, Jun 24, 2009
Slide 1: TAP: Underlying Strength in Challenging Times
TAP: Underlying Strength in Challenging Times Joe Kaeser, CFO DB German & Austrian Corporate Conference Frankfurt, Germany June 24, 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: Focused on three Sectors with strong end markets
Focused on three Sectors with strong end markets High QUALITY BUSINESSES in #1 or #2 positions Attractive markets with tailwinds Three SECTORS Cross- sector from MEGATRENDS Energy Fossil Power Generation ~€23bn1) Oil & Gas Siemens IT Solutions and Services Demographic Energy Service change R
Slide 4: TAP: Underlying strength in challenging times
TAP: Underlying strength in challenging times Our principles… Well positioned to weather the storm Acted early and decisively Project execution e.g., in Fossil and Mobility Increase SG&A project well on track to support TRANSPARENCY performance Targets and roadmap for supply Enforce chain op
Slide 5: Strong backlog balances short-term fluctuations
Strong backlog balances short-term fluctuations Resilient, installed base Strong backlog driven business models €bn Order backlog1) Industry: 87 IS: Recurring service business for water filters 23 IA: Software license and maintenance / update Industry 32 63 services BT: Security monitoring ser
Slide 6: SG&A costs reduced from 16.7% to 14.0% of revenue
SG&A costs reduced from 16.7% to 14.0% of revenue Absolute SG&A performance Relative SG&A cost development shows in P&L in % of revenue: -270bp 16.7% 14.0% -14% €bn 12.11) €bn 6.3 5.4 Q2 3.2 -22% Selling 8.9 2.5 5.4 -6% 4.3 Q1 3.1 2.9 G&A 3.2 1.1 FY07 H1 FY09 H1 FY08 H1 FY09 1) Baseline comparable i
Slide 7: Clear targets for Value Creation in SCM
Clear targets for Value Creation in SCM Cross-sector Global Value Sourcing Supplier Management managed volume Increase cross-sector managed volume Increase share of Global Value Reduce number of suppliers by 60%1) by FY 2010 Sourcing to >25% mid-term by 20% mid-term +60% -20% >5pp ~19 bn1) >100k2) ~
Slide 8: Siemens anticipates new orders of about €15 billion
Siemens anticipates new orders of about €15 billion ~€2.000 billion Market potential for Siemens ~€700 billion Siemens expects orders of about €15 billion over 3 years Of the €15 billion about €6 billion is 2/3 e.g for tax relief earmarked for green infrastructure USA This will have a stabiliz
Slide 9: Siemens is the green infrastructure giant
Siemens is the green infrastructure giant Green portfolio generated revenue of Growth drivers (examples) approx. €19 billion in FY2008 In € billions Expected annual growth +10% p.a. of offshore wind energy ∼25 market is 20 percent ∼19 Expected annual growth of HVDC1) technology market is 20 percent
Slide 10: Our innovative solutions address key customer needs
Our innovative solutions address key customer needs Velaro – world’s fastest multiple- Renewable energy – World’s first high end – unit train new low to mid wind turbine low-cost MR scanner Velaro – high speed train 2.3 MW wind turbine - 101 m rotor MAGNETOM ESSENZA World's fastest multiple-unit t
Slide 11: Macro indicators: Much worse than previous downturns
Macro indicators: Much worse than previous downturns Global GDP growth ISM Purchasing Manager Index 6 July 08: % change YoY GDP forecast 09 65 Expanding economy July 08 4 60 55 49.5 2 2.9% 50 45 42.8 0 40 -2 35 Contracting economy -4 -2.6% 30 97 98 99 00 01 02 03 04 05 06 07 08 09e 1) 97 98 99 00 01
Slide 12: Business environment continues to be challenging
Business environment continues to be challenging – Stringent execution of productivity programs required Energy H2 FY09 Book-to-bill expected to continue >1 Fossil Power: High quality backlog, stable margins, slow-down of order intake expected; growing service business Renewable: Off-shore bus
Slide 13: What we expect for the remainder of 2009
What we expect for the remainder of 2009 Growth target remains unchanged: 2x global GDP growth1) Total Sectors profit is expected to exceed the prior year level of €6.6bn Growth in income from continuing operations expected to exceed growth in Total Sectors profit This outlook excludes portfol
Slide 14: 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 Ou
Slide 15: 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 financial measures: Adjusted or organic growth rates of Revenue and ne
Slide 16: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) Adjusted or organic growth rates of Revenue and orders In its financial reports, Siemens presents, on a worldwide basis and for its Sectors and Cross-Sector Businesses, the percentage change from period to period in Revenue as adjusted for cu
Slide 17: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Return on Capital Employed, or ROCE Return on capital employed, or ROCE is Siemens’ measure of capital efficiency. Siemens uses this financial performance ratio in order to assess its income generation from the point of view of its sharehold
Slide 18: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) Cash conversion rate and free cash flow Cash conversion rate, or CCR is a operational performance measure, which shows us how much of our income we are converting to free cash flow. Siemens defines cash conversion rate as free cash flow divid
Slide 19: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Net debt Siemens defines net debt as total debt less total liquidity. Total debt is defined as Short-term debt plus current maturities of long-term debt plus long-term debt. Total liquidity is defined as Cash and cash equivalents plus current
Slide 20: Reconciliation and Definitions for Non-GAAP Measures (VI)
Reconciliation and Definitions for Non-GAAP Measures (VI) Compensation for Limitations Associated with Siemens' Supplemental Financial Measure Siemens provides a quantitative reconciliation of each supplemental financial measure to the most directly comparable IFRS financial measure either in this d
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