Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Exane European Seminar 2013
22 slides from Siemens Aktiengesellschaft's conference presentation, Jun 14, 2013
Slide 1: Performing in a low growth environment
Joe Kaeser Kaeser, CFO Performing g in a low growth g environment Exane European Seminar Paris, June 14, 2013 Restricted © Siemens AG 2013. All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expects,” “looks forward to,” “an
Slide 3: Why to buy Siemens?
Why y to buy y Siemens? Demographic Climate change Urbanization Globalization change Attractive markets driven by megatrends Si Siemens is i strong t in i markets k t with ith secular l growth th dynamics d i (examples) ( l ) Energy Infrastructure & Cities Industry Healthcare • Efficient, clean powe
Slide 4: Developed markets remain important despite accelerating share in emerging economies
Developed markets remain important despite accelerating g share in emerging g g economies GDP growth (2012 – 2017) Regional distribution (2012) CAGR +3.5% 3.5% GDP1) Siemens revenue €56tr €66tr €56tr €78.5bn Other Other emerging and 14% +4.6% 15% emerging and 11% developing 14% developing countries
Slide 5: Significant local investments drive value creation in Emerging Markets
Significant local investments drive value creation in Emerging g g Markets Siemens in EM1) Revenue in €bn +18% Russia 21.8 25.7 Middle East 5.0 1 6 3,000 1.6 3 000 FY 2010 FY 2012 7,700 Employees China +20% 30,600 85k 102k Brazil 6.3 India FY 2010 FY 2012 9,400 Emerging Markets (FY 2012) 1.9 Revenue
Slide 6: 'Second Wave' of Emerging Economies offer huge opportunities for Siemens
'Second Wave' of Emerging Economies offer huge opportunities pp for Siemens Nine Emerging Economies build the 'Second Wave' Revenue (in € bn) +22% 3.5 4.2 Poland Turkey FY 2010 FY 2012 Mexico Vietnam Thailand Employees Colombia Indonesia +15% Chile ~20,900 S th Africa South Af i ~18,100 FY 2010 FY 2
Slide 7: United States economy: 'Build it, and they will come'
United States economy: y ‘Build it,, and they y will come' Siemens in the U.S. Anticipated developments • Short term growth patterns seem intact Revenue in €bn Employees • Mid term prospects look encouraging: • Self sufficiency in Oil & Gas +26% +7% • Re-industrialization potential boosts 13.3 16 7
Slide 8: Europe is more than €-zone and debt crisis
Europe p is more than €-zone and debt crisis North West Europe Russia +9% +15% 8.0 8.7 1.4 1.6 FY 2011 FY 2012 Germany FY 2011 FY 2012 +2% 10.8 11.1 South West Europe Turkey FY 2011 FY 2012 -4% +24% 8.3 8.0 0.7 0.8 FY 2011 FY 2012 FY 2011 FY 2012 © Siemens AG 2013. All rights reserved. Page 8 Paris,
Slide 9: Investment climate in EU has improved from very low levels
Investment climate in EU has improved from very low levels but y yet no broader uptick p visible European Uncertainty Index Fixed Investments in €bn ainty % (y-o-y) % (y-o-y) 15 -40 40 2.623 ainty Decreasing uncerta -30 EU -12% 10 2.321 -20 5 -10 1.987 0 0 Euro zone -12% 10 1.752 99 00 01 02 03 04 0
Slide 10: Economies offer opportunities in all stages of their development
Economies offer opportunities in all stages of their development p Changing demand Developed Markets Emerging Markets Demand for standard of living Industrialization Healthcare Infrastructure Environment build up China Sustainability Energy demand Indonesia India Romania Russia Poland Brazil T
Slide 11: Siemens answers through innovation, domain software capabilities and integration
Siemens answers through innovation, domain software capabilities p and integration g R&D-Investment Innovation: Offshore Wind R&D Intensity • 6MW direct di t drive d i off-shore ff h wind i d turbine t bi - pilot il t (€bn/% of sales) installed in less than 24h at Gunfleet Sands • Frame agreement wi
Slide 12: Siemens answers through optimizing the value chain
Siemens answers through g optimizing p g the value chain Integrated global set-up Shift of value add Strengthening local MR - MAGNETOM Spectra DT – Standard Motors footprint - Turkey Istanbul - Kartal Plant Istanbul - Gebze Plant • Premium quality 3T-MRI in a • Transfer of value add for • Intensifie
Slide 13: Current leadership priorities: Focus on self help potential
Current leadership priorities: Focus on self help pppotential • Stringent execution of transformation program 'Siemens 2014' to achieve at least 12% Total Sector Profit Margin on a sustainable level • Structural changes to improve competitiveness and reduce complexity • Strengthen g integration g ac
Slide 14: Thank you for your attention – your questions, please!
Questions and Answers Q Thank you for your attention – your questions, please! © Siemens AG 2013. All rights reserved. Page 14 Paris, June 14, 2013 Exane European Seminar
Slide 15: Financial calendar
Financial calendar June June 13, 2013 g Conference ((London)) JP Morgan June 14, 2013 Exane Conference (Paris) June 24 – Early July O Osram R d h Roadshow July 8, 2013 (planned) July Listing Osram August 1, 2013 August Q3 Earnings Release August 5 – 9, 2013 US Roadshow © Siemens AG 2013. All rights
Slide 16: Siemens Investor Relations contact data
Siemens Investor Relations contact data Mariel von Drathen +49-89-636-33780 Munich Office +49-89-636-32474 Fax: +49-89-636-32830 Internet: http://www.siemens.com/investorrelations Email: investorrelations@siemens.com © Siemens AG 2013. All rights reserved. Page 16 Paris, June 14, 2013 Exane European
Slide 17: One Siemens financial framework sets the aspiration
One Siemens financial framework sets the aspiration p One Siemens The integrated technology company Financial target system Siemens Outperforming Capital efficiency Capital structure revenue growth ROCE (cont. ops.)1) Adjusted industrial net debt / Growth (nominal) > EBITDA most relevant competitors
Slide 18: Incremental savings of ~€300m targeted to compensate for adverse effect
Incremental savings of ~€300m targeted to compensate for adverse effect from more conservative g growth expectation p Total Sector Profit Margin (% revenue) ≥ 12.0% +280bps 9.2%1) Modest 2.5 - 3% growth g p.a. pricing pressure Profit Volume/ Price Cost Gross Profit Target 2012 Degression Erosion Inf
Slide 19: Key enabler 'Cost reduction' and 'Focus on core activities'
Key enabler 'Cost reduction' and 'Focus on core activities' with the highest g impact p expected p ~ €3bn in procurement e.g. by stepping up design-to-cost effectiveness and material productivity of operational key processes (Engineering, Development and Manufacturing) Cost by further integration
Slide 20: Assumptions and goals for 'Siemens 2014' are aligned and cascaded into the Sectors
Assumptions and goals for 'Siemens 2014’ are aligned g and cascaded down into the Sectors Sector Energy Sector Industry €bn ≥ 12.0% 12 0% €bn ~50 bps +510 10 b bps ≥ 14.0% 14 0% +150 bps ≥ 13.5% 6.9%1) 12.0% 3.3 Exit Solar 1.1 Exit Water Techno- 7.8%2) logies Integrate 3 – 3.5% p. a. < 1% p. a. LMS
Slide 21: Outlook
Outlook • In fiscal 2013, Siemens is implementing 'Siemens 2014', a company-wide program supporting our One Siemens framework for sustainable value creation. • The goal of the program is to raise our Total Sectors profit margin to at least 12% by fiscal 2014. • For fiscal 2013, we confirm our expect
Slide 22: 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. Orders and order backlog; adjusted or organic growth rates of revenue and orders; book-to-bill ratio; Total Sectors profit; return on equity (af