17 slides from Siemens Aktiengesellschaft's investor day presentation, Dec 11, 2012
Slide 1: Service: Expanding and profitable foundation of Energy Sector
Service: Expanding and profitable foundation of Energy Sector Randy Zwirn CEO Energy Service Division Capital Market Day Siemens Energy Charlotte, December 11, 2012 © Siemens AG 2012. All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on equity (after tax), or ROE (afte
Slide 3: Strong performance of Energy Service based on unique strengths
Strong performance of Energy Service based on unique strengths 1 Great business, momentum continuing to build 2 Well balanced & diverse fleet (product & geography) 3 Unique position with dual home markets 4 Well positioned to profit from market trends 5 Targeted R&D makes existing fleet even more va
Slide 4: Continued growth with well balanced technology mix
Continued growth with well balanced technology mix Energy Service revenue growth Large Gas Turbines Global transformation underway, growing fleet + + +9% CAGR Wind Strongly growing fleet, leader in offshore + + Industrial, Oil & Gas Build on industrial base and exploit trend to unconventional + reso
Slide 5: Powerful growth in Siemens gas turbine fleet
Powerful growth in Siemens gas turbine fleet Fleet count Growth of service potential ~1,500 ~1,200 + €1bn ANNUAL Large Gas +25% Growth REVENUE >60 MW ‘12-‘16 FY 12 FY 14e FY 16e POTENTIAL ~650 ~450 + €200m ANNUAL Medium Gas +40% Growth REVENUE 15-60 MW ’12-‘16 FY 12 FY 14e FY 16e POTENTIAL ~1,700 ~2
Slide 6: Clear service market leader in Europe and adding to our footprint
Clear service market leader in Europe and adding to our footprint Wind fleet, GW Large gas and steam fleet, GW Onshore 7.0 Large Gas 36.2 Offshore 2.5 Large Steam 121.0 Adding most valuable Adding most advanced gas installed units in offshore turbine (H-class) to fleet with wind highest expected dis
Slide 7: Higher gas turbine dispatch drives service revenue
Higher gas turbine dispatch drives service revenue Global gas price trends, $/MMBtu Avg. Siemens US GT operating, hrs/y +15% Trend for USA Europe Asia +10% ‘13 4,574 $20 3,610 3,980 +10% $15 2008 2010 2012 $10 US coal retirements 35 GW $5 35 45 GW 340 GW thereof 22GW April 20, 2012: before ‘16 260 G
Slide 8: Unique dual home markets and well positioned in growth regions
Unique dual home markets and well positioned in growth regions Example: USA Siemens Energy Service revenue Well positioned to profit from gas trend in US Middle East, Trend Continued strong focus on “winning” coal & nuclear 12% Africa Siemens units are 1/3 of US power gen. capacity Asia Pacific 12%
Slide 9: Strong service business increase in growth regions - Example: Middle East
Strong service business increase in growth regions Example: Middle East Countries with largest Siemens gas turbine fleet Saudi Arabia deep dive Fossil fleet additions (cumulative) Libya Qatar UAE 93 gas turbines, 69 gas turbines, 131 gas turbines, Large steam turbines 13 thereof 13 large thereof 9 l
Slide 10: Leverage strong base in industrial applications to grow footprint in Oil & Gas
Leverage strong base in industrial applications to grow footprint in Oil & Gas Service market position Oil & Gas Equipment in industrial applications applications Small & Medium LNG compressor drive Gas Turbines Pipeline compressor 2 drive ~2,150 units Rig generator drive Industrial Refinery compres
Slide 11: Grow footprint in Oil & Gas - Example: Gladstone, Australia
Grow footprint in Oil & Gas Example: Gladstone, Australia 220 mile pipeline to LNG facility Units under contract 16 ~€40m Gas turbines long term 9 7 contract Generators Compressors © Siemens AG 2012. All rights reserved. Page 10 December 11, 2012 Capital Market Day Energy CEO Energy Service
Slide 12: Building profitable wind service backlog
Building profitable wind service backlog Wind fleet growth Growing backlog Service mix Installed Wind fleet, GW Order backlog, €bn Revenue Offshore LTP Offshore CAGR Onshore 40.0 Others 5.6 Onshore ’10 to ‘16 ~25% 45% 38% +40% 18.0 12.3 14% 2 ~75% 24% 11% 18% 17% 62% +20% 1 55% 86% 3% 89% 82% 76% 97
Slide 13: Productivity and annual growth of >25% yields strong margin expansion
Productivity and annual growth of >25% yields strong margin expansion - Example: Wind Service Headcount and ext. revenue, next FY Turbines per technician (’10 to ’14) Revenue +25% 7 12 Headcount +5% Leverage fixed cost degression Reduced service hours in turbine through diagnostic support and optimi
Slide 14: R&D makes our fleet more valuable to our customers
R&D makes our fleet more valuable to our customers Flex-Power Service Condition Based Maintenance (reshaping load curve) (sensors, analytics) Faster ramp-up Improved component condition forecasting 40 MWh extra power Increased flexibility for generated per start outage timing Amata B Cottam Grimm Po
Slide 15: We grew our backlog by 33% since CMD 2010
We grew our backlog by 33% since CMD 2010 to ~€24bn … and continue to accelerate + €5bn stable +100% Gas €19bn backlog Steam €3bn backlog Renewable €2bn backlog + + Strong backlog growth Large fleet Doubled backlog due to new fleet Coal plant retirements Approximately 40% of Increased deployment due
Slide 16: Expanding and profitable foundation of Energy Sector
Expanding and profitable foundation of Energy Sector Energy Service revenue Energy Service profit +9% +12% CAGR CAGR FY2008 FY2010 FY2012 FY2008 FY2010 FY2012 Energy Service continues to grow, both in size and profitability © Siemens AG 2012. All rights reserved. Page 15 December 11, 2012 Capital Ma
Slide 17: Reconciliation and Definitions for Non-GAAP Measures
Reconciliation and Definitions for Non-GAAP Measures This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on eq