Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2007)
24 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 22, 2007
Slide 1: Power Generation – Capital Market Days 2007
Power Generation – Klaus Voges, 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: Comprehensive product and service portfolio – Leading market positions in nearly all businesses
Comprehensive product and service portfolio – Leading market positions in nearly all businesses Divisions Fossil Power Oil & Gas and Industrial Instrumentation and Wind Power Generation (F) Applications (I) Controls (L) (R) Business Large gas turbines Industrial gas turbines Instrumentation an
Slide 4: PG benefits from strong orders and sales growth – New target margin until 2010: 10-14%
PG benefits from strong orders and sales growth – New target margin until 2010: 10-14% PG New orders (€ bn) Key Financials (€ m) ∆HY07/ 12.5 FY06 HY07 HY06 12.2 10.6 11.0 New Orders 12,532 10,034 +37 % 10.0 9.4 9.2 Sales 10,086 5,798 +28 % 7.3 Group profit 779 499 +14 % as % of sales 7.7% 8.6% --- R
Slide 5: Examples of recently received orders show PG’s worldwide competitiveness
Examples of recently received orders show PG’s worldwide competitiveness Americas EMEA Asia Fossil Power Fossil Power Fossil Power - USA: Turbine Island for 350MW - GER: 800MW Turnkey CCPP, sold - Thailand: 700MW Turnkey CCPP CCPP, sold with LTP with LTP - South Korea: Key components for - USA: Key
Slide 6: Worldwide installed fleet provides strong basis for future profitable growth of core services
Worldwide installed fleet provides strong basis for future profitable growth of core services GW 420 Installed Base Advanced GT Fleet • 680 GW global fleet • > 400 units in operation 160 100 • 20% of global fleet • 70% with long-term service agreements GT ST Nuclear (fossil and industrial) ST F/G cl
Slide 7: Strong market demand poses challenges to resources at the entire power industry
Strong market demand poses challenges to resources at the entire power industry Sub-supplier Power plant manufacturer Customer / market Limited capacities Long lead times for key Limited capacities in Strong market growth components Manufacturing Rising market prices High raw material
Slide 8: Global challenges impacting the energy supply
Global challenges impacting the energy supply Demographic Dynamics Resource Scarcity Environmental Focus Population Growth: Geopolitics: Global Emissions: 7.5 bn in 2020 (+1.1 bn) 70% of world oil and gas 40% increase over past Power Consumption: supplies only in a few 20 years in air pollut
Slide 9: Demand for electric power growing more strongly than demand for primary energy
Demand for electric power growing more strongly than demand for primary energy – Fossil fuels dominate Primary energy Electric power bn. toe *) 14.4 1,000 TWh 29.0 Other Renewables 1.8 % p.a. 3.2 % p.a. Hydro 10.0 Nuclear Fossil energy sources 80% Oil Fossil energy sources 67% 7.3 15.4 Natural Gas 8
Slide 10: Fossil-fueled power plants remain dominant – Strong demand for new power plants
Fossil-fueled power plants remain dominant – Strong demand for new power plants in almost all regions Plant type Region . . p.a 248 GW/a p.a 248 GW/a 3 .7 % 3 .7 % 14 Small generators 12 Nuclear power plants 36 Western Europe 200 GW/a 200 GW/a 16 Eastern Europe/CIS 14 61 Steam power plants 25 3 5 50
Slide 11: Climate mitigation would require drastic reduction of greenhouse gas emissions
Climate mitigation would require drastic reduction of greenhouse gas emissions CO2 emissions worldwide Scenario: bundle of measures to achieve a [Gt CO2] reduction of 4.8 Gt CO2 in 2025: Highly efficient vehicles WEO (IEA Reference scenario) 5% bio fuels in global transport worldwide >200,000
Slide 12: Clean energy: Technology options for tomorrow’s low-emission power mix
Clean energy: Technology options for tomorrow’s low-emission power mix Privileged feed-in Intermediate-load/ Low-emission demands load leveling peak-load base-load Renewable energy: Gas-fired combined cycle Coal-fired power plants: power plants: High-efficient, clean STPP Wind power IGCC
Slide 13: Today PG’s fossil-based technology is setting efficiency standards worldwide
Today PG’s fossil-based technology is setting efficiency standards worldwide Lignite-fired Hard coal-fired Combined cycle steam power plant steam power plant power plant 43% 47% 58% Niederaußem, Reference STPP NRW, Mainz-Wiesbaden 965 MW 600 MW 400 MW Development of efficiency and corresponding redu
Slide 14: Siemens H-technology is a significant step in the development of combined cycle power plants
Siemens H-technology is a significant step in the development of combined cycle power plants Combined cycle power plant PG gas turbine development Power plant efficiency (net) 62 Worldwide most powerful gas turbine Steam: >170 bar % Gas turbine 600/600 °C Output: 340 MW GT - Thermal barrier blade
Slide 15: Research project allows > 50% efficiency at coal-fired steam power plants
Research project allows > 50% efficiency at coal-fired steam power plants Steam power plants European research project, pathway to 700°C technology Power plant efficiency (net) Efficiency increase – potentials: Development of the next supercritical 350 bar 50 700°C steam power plant generation Mat
Slide 16: Air pollution control (APC) is gaining increasing importance – PG entered the market successfully
Air pollution control (APC) is gaining increasing importance – PG entered the market successfully Global APC market Market, Technology in bn € Coal-fired power plants increasingly used for base load +4% 32 Air pollution has risen by 40% over the last 20 years 27 Compliance with multi-pollutant
Slide 17: Gasification technology offers multiple business opportunities
Gasification technology offers multiple business opportunities: gas cleanup with optional CCS as well as production of synfuels Global gasifier market Own gasification technology allows to optimize the complete system and in GWth offer competitive IGCC solutions +33% 21 Air Separation IGCC Unit CCPP
Slide 18: Basis for growth build up by acquisitions in Division Oil & Gas and Industrial Applications
Basis for growth build up by acquisitions in Division Oil & Gas and Industrial Applications PG Oil & Gas market Market, Technology in bn € Oil prices stay at high level → further infrastructure investments +5% 20 possible 15 Shift from oil to coal and gas → gas-to-liquid, coal-to liquid as growt
Slide 19: Siemens Wind Power is growing more than 2 times global wind power market
Siemens Wind Power is growing more than 2 times global wind power market Worldwide wind market Market, Technology in bn € 25 Wind power is main driver for growth in CO2-free technology +14% National energy plans and government support for renewable energy 10 Technological development improves
Slide 20: Established initiatives ensure improvements in performance and cost position
Established initiatives ensure improvements in performance and cost position Standardization of main products: gas turbines, steam turbines, generators Expansion of worldwide manufacturing network, strengthening service Successful integration of manufacturing and service activities of KK&K thu
Slide 21: PG‘s priorities to achieve goals
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 22: PG’s key take aways
PG’s key take aways Positive market outlook Clearly outpacing market growth Diverse mix of environmentally-friendly technologies Strong service fundamentals provide solid foundation Current margins with further upside potential Well balanced investments with clear focus on cash conversio
Slide 23: 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 24: 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