Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Presentation (September 2006)
27 slides from Siemens Aktiengesellschaft's investor presentation, Sep 18, 2006
Slide 1: Siemens Financial Services - Financial expertise for profitable use
Siemens Financial Services - Financial expertise for profitable use Investor meeting, Dr. Herbert Lohneiß, CEO Munich, September 18, 2006
Slide 2: Safe Harbour Statement
Safe Harbour Statement This presentation contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified either orally or in writing by words as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estim
Slide 3: Agenda
Agenda 1. 1. Siemens Financial Services at a glance SFS expertise Global presence Development of SFS since its foundation Key financials 2. 2. Business portfolio SFS and strategic focus Business portfolio Group strategy 3. 3. SFS financial disclosure and capital structure SFS as part o
Slide 4: SFS expertise
1. 1. SFS expertise SFS is a captive provider of financial solutions: Combination of international financial expertise and comprehensive technology & industry know- how Financial solutions geared towards the requirements of Siemens and of industrial companies Center of competence for financi
Slide 5: Global presence and distribution of business volume
1. 1. Global presence and distribution of business volume Europe Total assets EUR 6,393 mn. Project volume to be EUR 20,134 mn. financed Americas Asia-Pacific Total assets EUR 3,741 mn. Total assets EUR 12 mn. Project volume to be EUR 7,427 mn. financed Project volume to be EUR 16,334 mn. financed A
Slide 6: Development of SFS since its Foundation
1. 1. Development of SFS since its Foundation Build up Strengthening Growth in booming economy in difficult environment economic recovery 1997- 2000 2000 - 2004 since 2004 • Economic boom phase / • Trough of economic downturn in • Worldwide economic recovery New Economy Q2/2003 in Europe • Capital i
Slide 7: Development of key financials
1. 1. Development of key financials 32,4% RoE b.t. 24,9% 24,6% 23,2% 22,0% Target: 18%-22% Total Assets 8.7 8.4 9.1 10.1 10.0 (in bn EUR) FY 2002 FY 2003 FY 2004 FY 2005 Q3 2006 IBIT 216 mn. 269 mn. 250 mn. 319 mn. 187 mn. Equity1) 930 mn. 1,080 mn. 1,015 mn. 983 mn. 1,131 mn. RoE2) (pretax) 23,2% 2
Slide 8: Agenda
Agenda 1. 1. Siemens Financial Services at a glance SFS expertise Global presence Development of SFS since its foundation Key financials 2. 2. Business portfolio SFS and strategic focus Business portfolio Group strategy 3. 3. SFS financial disclosure and capital structure SFS as part o
Slide 9: Business portfolio
2. 2. Business portfolio Capital Business drives the B/S of SFS and contributes 60% IBIT; Fee Business stands for 40% of total IBIT. Following the growth opportunities portfolio will shift towards capital business Capital businesses Fee businesses Divisions Equipment & Equity Project & Export Treasu
Slide 10: Group strategy
2. 2. Group strategy To best support the internal business in financing and risk management, SFS has to strengthen its position in the external market. External business moreover contributes significantly to SFS profit and growth targets Performance and Portfolio Reach target margin of 18-22% RoE Gr
Slide 11: Support and drive Siemens sales: Financing structure for Uniklinik Frankfurt
2. 2. Support and drive Siemens sales: I Financing structure for Uniklinik Frankfurt Customer brief: Develop business model/financial structure for operating a state of the art Siemens Magnetic Uniklinik Frankfurt – J. W. v. Goethe Shareholder Hessen, 1,400 Beds Resonance Tomograph (MRT) at a total
Slide 12: Support and drive Siemens sales: Equity investment in Tahaddart power plant
2. 2. Support and drive Siemens sales: I Equity investment in Tahaddart power plant Energie Electrique de Tahaddart S.A., Morocco Project: Construction of a combined cycle power Equity investment in the power plant of Energie plant in Tahaddart Electrique de Tahaddart in Tangier, Morocco Capacity of
Slide 13: Act as Center of Competence for financial risk management for Siemens
2. 2. Act as Center of Competence for financial risk management II for Siemens Balance sheets of Corporate Treasury and Operating Groups Treasury Siemens Corporate SFS Treasury & Financing Services (TFS) Treasury Assets Services fee Advisory Vendor financing for business Project & Export Financing (
Slide 14: Insurance solution for Siemens companies in China
2. 2. Act as Center of Competence for financial risk management for II Siemens: Insurance solution for Siemens companies in China Customer assignment: Placement of China-wide insurance programs within dynamic parameters; adaptation of the All companies in Siemens majority ownership programs to state
Slide 15: Drive profitable growth in external business
2. 2. III Drive profitable growth in external business In its external business, SFS is addressing attractive niches in markets growing > 2x GDP New bookings (Leasing) Europe1) (p.a., New bookings (Leasing) APAC1) (p.a., New bookings (Leasing) USA1) (p.a., in bn EUR) in bn EUR) in bn USD) +9% 100 +6
Slide 16: Examples for strengthening external business
2. 2. III Examples for strengthening external business Strengthening role in Small Ticket Business: SFS is leading player in flow business in several European markets, e.g. top3 player in UK Successful roll out of flow business into new markets like Germany and Spain Strengthening of role th
Slide 17: Online leasing solutions for Konica Minolta (Vendor Program)
2. 2. Drive profitable growth in external business: Online leasing III solutions for Konica Minolta (Vendor Program) Customer assignment: Konica Minolta Business Solutions East Establishment of an online leasing system for Konica Business Machines (UK) Ltd is part of Konica East Direct (e-business s
Slide 18: Receivables financing for LEONI AG
2. 2. Drive profitable growth in external business: III Receivables financing for LEONI AG Customer assignment: Creation of additional financing alternative LEONI AG within financing mix Global supplier of systems and designs for Working-capital and risk-management solution wire/cable (electro
Slide 19: Agenda
Agenda 1. 1. Siemens Financial Services at a glance SFS expertise Global presence Development of SFS since its foundation Key financials 2. 2. Business portfolio SFS and strategic focus Business portfolio Group strategy 3. 3. SFS financial disclosure and capital structure SFS as part o
Slide 20: SFS on Siemens AG balance sheet (June 30, 2006)
SFS as part of Siemens: SFS on Siemens AG balance sheet (June 30, 2006) Financing and Real Estate 1 Assets 6/30/06 9/30/05 Capital leases (current Current Assets receivables) & internal factoring Cash and cash equivalents 35 47 Marketable securities 24 17 receivables 1 Account receivables, net 3,866
Slide 21: SFS on Siemens P&L (June 30, 2006)
SFS as part of Siemens: SFS on Siemens P&L (June 30, 2006) 1 Financing and Real Estate Income from operating 6/30/06 9/30/05 lease receivables & 1 Net sales 1,728 1,578 fee income from SFS advisory business Cost of sales (1,436) (1,274) Gross profit on sales 292 304 Research and development expenses
Slide 22: SFS in Siemens SOTP: Methodology
3. 3. SFS in Siemens SOTP: Methodology SAG operating groups enterprise value + SFS equity value + SFS net debt = SFS enterprise value +/- …… = SAG enterprise value +/- SAG net debt, including SFS +/- pension obligations etc. +/- …… = SAG equity value Page 22 Sep-06 Investor Meeting
Slide 23: SFS in Siemens SOTP: Equity value and Siemens net debt
3. 3. SFS in Siemens SOTP: Equity value and Siemens net debt Equity Mostly book or profit before tax multiples are used value Including SFS Without SFS 7.6 7.6 (3.6) Total cash Siemens (incl. marketable securities) 4.0 Total debt Siemens SAG (8.3) net Debt SFS debt Net cash/ net debt Siemens as of 3
Slide 24: SFS in Siemens SOTP: SFS net debt position
3. 3. SFS in Siemens SOTP: SFS net debt position (as of 30.06.2006) Almost all SFS assets, and consequently SFS debt, are related to business with external customers except for the internal receivables financing business Assets Liabilities SFS debt for 10,011 1,131 financing of operating 8,308 group
Slide 25: SFS in Siemens SOTP: Enterprise value calculation for SFS
3. 3. SFS in Siemens SOTP: Enterprise value calculation for SFS In order to reflect SFS in the SOTP, the internal debt component has to be reflected in the SFS net debt for the enterprise value calculation 8,3 bn 2,5 bn SFS adapted 5,8 bn net debt Equity value SFS Equity value SFS net debt SFS debt
Slide 26: 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 Reports / Fiscal 2005, Annual Report Fiscal 2005 or Fiscal 2006 / Quarter 3 / F
Slide 27: Siemens Investor Relations Team
Siemens Investor Relations Team Marcus Desimoni +49-89-636-32445 Roland Bischofberger +49-89-636-36165 Frank Heffter +49-89-636-34095 Irina Pchelova +49-89-636-33693 Christina Schmöe +49-89-636-32677 Susanne Wölfinger +49-89-636-30639 Webpage: http://www.siemens.com Investor Relations e-mail: invest