Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2007)
30 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 21, 2007
Slide 1: Siemens Building Technologies – Capital Market Days 2007
Siemens Building Technologies – Heinrich Hiesinger, Member of the CEC Johannes Milde, Group President Capital Market Days 2007 June 21-22, Berlin
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words as “expects”, ”looks forward to”, “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will” or wor
Slide 3: SBT – Our scope
SBT – Our scope Building Comfort Fire Safety Electronic Security Comfort, energy saving Protecting life and Protecting people, and building efficiency property assets and processes HVAC controls Fire detection Access control Valves, actuators Extinguishing Video surveillance Energy ser
Slide 4: SBT – Our key figures
SBT – Our key figures Fiscal Year Building Electronic Fire Safety Total SBT 2006 Comfort Security Sales (€ bn) ~2.3 ~1.5 ~1.0 4.8 Employees 12,900 9,900 4,800 28,600 Market position No. 2 No. 1 Top 5 Page 3 Capital Market Days 2007
Slide 5: Security drives SBT market development
Security drives SBT market development in € bn CAGR in € bn CAGR 91 91 7% 7% 80 80 28 5% Europe 25 55 Electronic 47 8% Security 7% 40 Americas 35 Fire Safety 13 3% 14 Asia / Pacific 20 Building 18 8% 20 5% 22 Other Comfort 3 3 2006 2008 2006 2008 2006 - 2008 growth driven by: 2006 - 2008 growth in a
Slide 6: Where we come from – and our plan we presented to you last year
Where we come from – and our plan we presented to you last year Maintain Growth Portfolio Clean-up Operational Excellence Strengthen Portfolio Strategic Alignment Gain Growth Momentum Reach Target Margin in € bn Divestment Facility- Project Selection management Criteria, Currency Growt
Slide 7: The road to success is sustainable improvements on levers
The road to success is ... ... sustainable improvements on 4 levers Capacity and competence of 1 employees Target margin Focus and performance 7.0% 4 of solutions business ~5% Optimized business mix 2 4.1% 2005 2006 2007 3 Competitive cost position Additional strong focus on asset management AND str
Slide 8: Continuous learning is key in order to respond to changes in the business environment
Continuous learning is key in order to respond to changes in the business environment and to grow profitably SBT is a people's business and ~80% of project value is added in the Regions Siemens Learning Campus SBT Academy & Training on the Job Management & Leadership SBT adds SBT specific training c
Slide 9: Optimization of business mix shows first results
Optimization of business mix shows first results Strategic direction This we have achieved … New orders in € bn +2% 2.8 2.9 Manage growth in solutions business Large projects Solutions towards stronger differentiation and high service potential +2% Solutions Maximize service business out of very Ser
Slide 10: Considerable step towards benchmark cost structure and improved performance of solutions business
Considerable step towards benchmark cost structure and improved performance of solutions business … Actions Profit development of Solution business Project selection Group Profit Margin Stringent selection criteria Project approval process +3%pt Process improvement PM@Siemens tool box Strict
Slide 11: High market recognition of SBT's offering
High market recognition of SBT‘s offering «Best Energy Service Provider» European Parlament «Security Excellence Award» Customers in UK Intrusion Detector «Ifsec Innovation Award» Eyetec Synco Living «Reddot Innovation Award» Wireless Home Automation Page 10 Capital Market Days 2007
Slide 12: SBT successfully cleaned up its portfolio and managed the turn-around
SBT successfully cleaned up its portfolio and managed the turn-around Profit margin & sales (in € bn) (in € m) FY 06 H1 07 7.5% New orders 5,235 2,750 4.9% 4.1% 5.9% Sales 4,796 2,548 2.5% 2.0% Group profit 234 172 5.0 Free Cash Flow 1 117 4.8 4.2 4.4 1.2 1.3 Employees 28,600 28,400 2003 2004 2005 2
Slide 13: Focus on business mix and Solutions' performance
People Portfolio Excellence Develop talent globally Build on our strengths in Strengthen leadership Energy & Environmental development People Care Attain high performance Portfolio Automation & Control, Excellence culture Industrial & Public Strengthen expert careers Infrastructures Pe
Slide 14: SBT will achieve Cash and ROCE targets
People Portfolio Excellence Develop talent globally Build on our strengths in Strengthen leadership Energy & Environmental development People Care Attain high performance Portfolio Automation & Control, Excellence culture Industrial & Public Strengthen expert careers Infrastructures Pe
Slide 15: Future priorities for SBT
People Portfolio Excellence Develop talent globally Build on our strengths in Strengthen leadership Energy & Environmental development People Care Attain high performance Portfolio Automation & Control, Excellence culture Industrial & Public Strengthen expert careers Infrastructures Pe
Slide 16: Energy Efficiency – Impressive track record due to high customer value
A Energy Efficiency – Impressive track record due to high customer value SBT Energy & Environmental Services Creating customer value Sales Clinical Center Reinkenheide, Germany: (in € m) Replacement of a competitor‘s Building Automation >25% System and Service contract +10% Solution encompasses:
Slide 17: SBT Energy & Environmental Services – Front-runner in Energy Services
A SBT Energy & Environmental Services – Front-runner in Energy Services Our performance in Energy Efficiency ... More than 1,300 energy projects realized globally since 1994 Total energy savings of € ~1.5bn over a period of 10 years CO2 reduction of all energy projects: ~700,000 tons per year
Slide 18: Demand for Energy Efficiency creates high growth potential for SBT
A Demand for Energy Efficiency creates high growth potential for SBT Rising energy costs and Additional stronger environmental focus SBT market potential of create new € ~20bn market opportunities Energy Consulting Services Energy Supply Side Services Environmental regulations and Energy Optim
Slide 19: Total Building Solutions (TBS) – SBT meets complex customer demands
B Total Building Solutions (TBS) – SBT meets complex customer demands Hotel Palafitte, Neuchâtel (CH) This € 4m Total Building Solution consists of: Building Management system Heating and Ventilation equipment Fire Safety and Security system Low Voltage and Lighting systems Communication a
Slide 20: Total Building Solutions allow for competitive differentiation
B Total Building Solutions (TBS) allow for competitive differentiation Total Building Solutions go beyond today's SBT core portfolio and include lighting, blinds and low-voltage equipment What are the customer benefits? Heating, Integrated Ventilating, Air Full building management functionality Co
Slide 21: Security is our growth engine – From €700m to >€1,100m in 3 years
C Security is our growth engine – From € 700m to >€ 1,100m in 3 years Focus on value segment solutions and Security Solutions and Services services, e.g. Command & Control Sales +18% (in € m) 902 ~1,000 762 606 Services Solutions FY 04 FY 05 FY 06 FY 07E Focus on video over IP and other Security Pro
Slide 22: Security Solutions business will move beyond traditional Protect focus
C Security Solutions business will move beyond traditional “Protect” focus Prevent Protect Respond Recover Goal Prevent incident from Generate alarm in case Deal with actual Deduction of conse- happening of incident incident quences from incident Example Perimeter control Glass break sensor Security
Slide 23: Service Business - Future priority and growth opportunity
D Service Business - Future priority and growth opportunity Leveraging existing customer base Additional Service offering Example Kintec (acquired in 2006): Installed Base grew by ~ 60,000 Vertical Market Telecom projects p.a. over the last 20 years Demand for Transparency Security ... Market … and
Slide 24: Advantage Services™ - Business and mindset
D Advantage Services™ - Business and mindset Service as a business Comprehensive Service portfolio across all disciplines, including Maintenance, Operational Services, Energy Services and Customer Training Full lifecycle approach to optimize customer value Intelligent system migration concepts
Slide 25: SBT's growth plans are driven by innovative products
SBT’s growth plans are driven by innovative products SBT is continuously increasing its investment in R&D Examples of new products and systems launched Apogee – Wireless BAS Sinteso – Fire Safety SiPass – Access Control Energy Monitoring & Control Sistore – Digital Video Desigo – Building Automation
Slide 26: Innovative applications at its best – Automated wide area surveillance
Innovative applications at its best – Automated wide area surveillance Interactive animated view of your site on a single screen Virtual fences (site-based alarm zones) set to security policy Classified object detection and tracking in real-time Sensor types Video cameras Thermal cameras
Slide 27: SBT's key take aways
People Portfolio Excellence Develop talent globally Build on our strengths in Strengthen leadership Energy & Environmental development People Care Attain high performance Portfolio Automation & Control, Excellence culture Industrial & Public Strengthen expert careers Infrastructures Pe
Slide 28: Building Technologies – High value for our customers
Building Technologies High value for our customers We protect people and property We protect families and kids against fire, theft and crime We make people feel safe and comfortable at work and at home While people are working or sleeping at night, we save energy and, helping preserve our environmen
Slide 29: Reconciliations and definitions
Reconciliations and definitions ”Group profit from Operations” is reconciled to ”Income before income taxes” of Operations under ”Reconciliation to financial statements” on the table ”Segment information.” See ”Financial Publications/Quarterly Reports, FY07 Q2, Financial Statements” at our Investor
Slide 30: Siemens Investor Relations Team
Siemens Investor Relations Team Marcus Desimoni +49-89-636-32445 Roland Bischofberger +49-89-636-36165 Florian Flossmann +49-89-636-34095 Irina Pchelova +49-89-636-33693 Christof Schwab +49-89-636-32677 Susanne Wölfinger +49-89-636-30639 Webpage: http://www.siemens.com/investorrelations e-mail: inve