Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (July 2008)
24 slides from Siemens Aktiengesellschaft's investor day presentation, Jul 1, 2008
Slide 1: Siemens Energy – Controlling the Business, Achieving the Targets
Siemens Energy – Controlling the Business, Achieving the Targets Ralf Guntermann, CFO Energy Capital Market Days “Energy” Munich, July 1, 2008 Copyright © Siemens AG 2008. 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: My priorities as the CFO of the Energy Sector
My priorities as the CFO of the Energy Sector Enable Siemens Energy to drive profitable growth Drive productivity and efficiency gains throughout our Sector Ensure CAPEX discipline and Working Capital efficiency to improve Cash generation Page 3 July 2008 Capital Market Days “Energy” Copyright © Sie
Slide 4: Focus on growth, profitability and cash generation
Focus on growth, profitability and cash generation Business growth Productivity and efficiency Cash generation Leverage tailwinds from Enhance productivity Maintain high level of favorable market programs cash flow Drive organic growth Rigorous spending control Focus CAPEX on areas with
Slide 5: The Energy Sector combines two groups with strong top-line growth
The Energy Sector combines two groups with strong top-line growth Revenue Order intake € bn € bn +39% 28.5 +27% +22% 11.7 Fossil 20.3 20.6 +35% 16.6 16.2 8.1 Fossil 2.5 Renewable 12.5 12.3 1.4 Renewable 4.7 Oil & Gas 10.1 11.0 PG 3.4 Oil & Gas PG 8.1 Trans- Trans- 6.7 4.9 mission mission 8.0 6.5 PTD
Slide 6: Positive productivity development
Positive productivity development Revenue per Employee Profit per Employee €k €k 290 26 260 17 FY 2006 FY 2007 FY 2006 FY 2007 Page 6 July 2008 Capital Market Days “Energy” Copyright © Siemens AG 2008. All rights reserved.
Slide 7: High capital efficiency and further improvement
High capital efficiency and further improvement ROCE Increase of ROCE driven by: Margin improvement Strict discipline on working capital 48% Selective capital spending in all Divisions of Siemens Energy 31% Calculation of ROCE Sector Profit before tax FY 2006 FY 2007 ROCE = Average Net Capital
Slide 8: Customer Focus
A better, sharper, more agile organization Energy Old New Energy Solutions Sector Products Fossil Service Oil & Gas PG PG Instrumentation and Electrical Wind Power Fossil Power Generation Customer Focus Oil & Gas and Industrial Applications (Externally reported in Speed Service Fossil/ Oil & Gas) I&
Slide 9: Key figures
Key figures €m Q2 Q2 1st half 1st half FY 2007 Δ in % FY 2008 FY 2007 Δ in % FY 2008 Order Intake +19% +14% 7,605 9,026 15,921 18,105 (Δ adjusted1) ) (+26%) (+19%) Revenue 4,921 +1% 4,964 9,457 +6% 9,999 (Δ adjusted1) ) (+6%) (+9%) Sector Profit 478 -99% 6 782 -55% 353 Profit Margin 9.7% 0.1% 8.3% 3
Slide 10: Key Data by Divisions Q2 FY 2008
Key Data by Divisions Q2 FY 2008 €m Order Intake Revenue Profit & Margin Margin Q2 Q2 Q2 Q2 FY 2008 FY 2008 FY 2008 FY 2007 Oil&Gas 1,096 981 78 8.0% 4.2% Fossil Power Generation 4,192 1,732 -328 -18.9% 12.5% Renewable Energy 961 417 35 8.4% 12.1% Power Transmission 1,993 1,256 144 11.5% 6.4% Power
Slide 11: Key Data by Divisions 1st half FY 2008
Key Data by Divisions 1st half FY 2008 €m Order Intake Revenue Profit & Margin Margin 1st half 1st half 1st half 1st half FY 2008 FY 2008 FY 2008 FY 2007 Oil&Gas 2,943 1,808 144 8.0% 5.0% Fossil Power Generation 7,632 3,633 -303 -8.3% 9.5% Renewable Energy 1,993 834 87 10.4% 9.5% Power Transmission
Slide 12: The Energy Sector capitalizes on high order backlog
The Energy Sector capitalizes on high order backlog Order backlog Energy Solutions € bn (unconsolidated)1) 40.3 11.3 34.1 15.3 13.9 4.6 Service 12.5 9.1 (therein LTP2) and O&M3) Fossil (8.9) (9.6) (8.0) Power Gen.) Backlog Backlog Revenue Revenue Revenue Revenue 09/2007 03/2008 2nd half 2008 2009 20
Slide 13: The Energy Sector is committed to achieve 2010 target margins
The Energy Sector is committed to achieve 2010 target margins Energy 11 – 15% Fossil Power Renewable Power Power Oil & Gas Generation Energy Transmission Distribution 10 – 14% 11 – 15% 12 – 16% 10 – 14% 11 – 15% 7% 10% 10% 8% 10% 2007 Performance Page 13 July 2008 Capital Market Days “Energy” Copyri
Slide 14: Key levers for target achievement in FY 2010 implemented
Key levers for target achievement in FY 2010 implemented 15% Target Margin 11% Range of Personnel potential performance depending Material on economic scenarios FC Profit Growth Factor costs Pricing Productivity Target Profit FY 2008 FY 2010 Imple- Selective Risk Value pricing Reduce mented
Slide 15: Our new productivity program
Our new productivity program Costs down Sustain improvements Sales up Division CEOs Rene Umlauft Ralf Christian Productivity Footprint / Manuf. Ralf Guntermann Innovation and R&D Michael Süß SG&A costs Project Management Division CEOs Working capital Randy Zwirn Wolfgang Dehen Resource Division CEOs
Slide 16: Capital Efficiency (ROCE): Selective Capital Spending
Selective Capital Spending: Boosting profitable organic growth and backlog conversion capabilities Efficient Capital allocation in areas with highest growth & profitability expectations Enhance Wind Power manufacturing capacities (Speed@Wind) high Profiteer Top Divisions Divisions Capital Efficien
Slide 17: Getting the best people
Getting the best people We have a clear strategy in the competition for competencies & talents Strategic personnel planning process Standardized global recruiting strategy Focus on retention of new hires Specific development measures for mature workforce Our Focus and high potentials Activit
Slide 18: Simultaneously exploit SG&A cost reduction potential
Simultaneously exploit SG&A cost reduction potential Ambitious targets set Initiatives running in Divisions, Regional Clusters and Headquarter Selling expenses nearly flat in spite of tremendous volume increase G&A will be reduced in absolute figures Levers from changes in structures and proce
Slide 19: Less complexity: Reduce number of legal entities
Less complexity: Reduce number of legal entities Planned reduction of number of legal entities – Energy Sector 214 46 Reduced complexity by lower number of reporting units 21 Number of legal entities SG&A reduction by 11 136 cutting overhead expenses and fees Increase of transparency Improve
Slide 20: Asset Management @ Energy – Working Capital optimization
Asset Management @ Energy – Working Capital optimization Operating Working Capital1) Turnover Ongoing activities for Working Capital optimization: 35 30 Inventory management initiatives 25 Ongoing optimization of 20 18 Continued payment terms upward progress Focus on claim 15 through managemen
Slide 21: Delivering our targets
Delivering our targets Growth above market growth Business growth and Boosting Backlog Conversion earnings conversion Recruitment initiative Reinforced LoA process Energy productivity program Driving productivity and Exploitation of SG&A cost reduction efficiency to reach our potential m
Slide 22: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) Profit Total Sectors is defined as the sum of the profits of each of the three new Sectors that Siemens uses for purposes of reporting IFRS segment results commencing with the third quarter of fiscal 2007. For a reconciliation of Profit Total
Slide 23: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) Average calculation for CE*: Year-to-Date Q1 2 Point average: (CE ending Q4 Prior year + CE ending Q1) / 2 Q2 3 Point average: (CE ending Q4 Prior year + CE ending Q1 + CE ending Q2) / 3 Q3 4 Point average: (CE ending Q4 Prior year + CE endin
Slide 24: Siemens Investor Relations Team
Siemens Investor Relations Team Michael Sen +49-89-636-33780 Gerald Brady +1-408-492-4439 Florian Flossmann +49-89-636-34095 Sabine Groß +49-89-636-35755 Dr. Martin Meyer +49-89-636-33693 Christof Schwab +49-89-636-32677 Dr. Gerd Venzl +49-89-636-44144 Webpage: http://www.siemens.com/investorrelatio