Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (February 2006)
29 slides from Siemens Aktiengesellschaft's investor day presentation, Feb 23, 2006
Slide 1: SBT – Efficiency for Buildings, Safety and Comfort for People
SBT – Efficiency for Buildings, Safety and Comfort for People Heinrich Hiesinger, Group President Capital Market Days February 23-24, 2006
Slide 2: Safe harbor statement
Safe harbor 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”, “estima
Slide 3: Siemens Automation and Control (A&C)
Siemens Automation and Control (A&C) Automation and Drives Industrial Solutions and Siemens Building (A&D) Services (I&S) Technologies (SBT) Products, systems and Solutions focused on Building automation, fire safety solutions for industries and process industries and and security for buildings and
Slide 4: SBT – Our Scope
SBT – Our Scope Building Comfort Fire Safety Electronic Security Comfort and energy Protecting life and Protecting people, efficiency property assets and processes HVAC controls Fire detection Access control Valves, Actuators Extinguishing Video surveillance Energy services and Evacu
Slide 5: SBT – Our Market
SBT – Our Market Market Development in € from 2003 to 2005 heavily impacted by currency (€/US$) CAGR CAGR CAGR CAGR 79 5% 88 79 5% 88 (in € billions) 76 2% (in € billions) 76 2% Europe 24 26 22 3% 4% Electronic 45 4% 48 7% 55 Security Americas 37 0% 37 6% 41 Fire 12 0% 12 2% 12 Asia/Pacific 15 16 7%
Slide 6: SBT – Our Key Figures
SBT – Our Key Figures Fiscal Building Comfort Fire Safety Electronic Security Total SBT Year 2005 Sales (€ mn) ~2,100 ~1,500 ~800 4,400 Employees 13,000 9,900 4,600 28,500 *) Market Position No. 2 No. 1 Top 5 *) incl. not allocated + HQ Siemens Capital Market Days, February 23-24, 2006 Page 5
Slide 7: Our Global Reach
Our global Reach Local presence in around 50 countries worldwide Close to our customers Europe through 400 branch offices 61% 63% Americas Asia/Pacific 32% 33% 17,400 2.8 7% 4% 9,100 1.5 2,000 0.2 v € v € v € Investment in Asia/Pacific boosting previously weak presence v Employees 2005 € Sales 2
Slide 8: Building Comfort
Building Comfort Comfort and energy efficiency In Building Comfort solutions, SBT is the market leader in Europe, No. 2 in North America, and a leading player in Asia In heating, ventilation and air-conditioning components, SBT holds the No. 3 position Hospitals Vorarlberg, Austria Building Automati
Slide 9: Fire Safety
Fire Safety Protecting life and property SBT maintains the global No.1 position in Fire Safety solutions. We are No.1 in Europe and No. 3 in USA SBT’s success is built on a benchmark product portfolio in Fire Detection, Fire Suppression and on a unique Service Network Jin Mao, Shanghai, China Danger
Slide 10: Electronic Security
Electronic Security Protecting people, assets and processes In a highly fragmented market, SBT belongs to the global leading providers of electronic security SBT’s Total Security Solutions comprise world class Access Control, Video Surveillance, Biometric Detection, Screening and Intruder Alarm syst
Slide 11: Our Path to Success
Our Path to Success Clear priorities and objectives year-over-year Maintain Growth Portfolio Clean-up Operational Excellence Strengthen Portfolio Strategic Alignment Gain Growth Momentum Reach Target Margin 5.0 Divest Facility Mgt. Services Target Margin 0.33 achieved Net Sales (in € b
Slide 12: Portfolio Clean-up & Strategic Alignment (FY 2003 to FY 2004)
FY 2003 to FY 2004 Portfolio Clean-up & Strategic Alignment • Facility Management Services sold in GER, SWZ and Divestment of U.S. (Sales: €330 mn, Employees: 2,700) non-core business • Electrical Installation Project Business exited by restructuring / MBO (Sales: €150 mn, Employees: 650) and redepl
Slide 13: Operational Excellence & Gain Growth Momentum (FY 2004 to FY 2005)
FY 2004 to FY 2005 Operational Excellence & Gain Growth Momentum Consistent implementation of Siemens Management Global System and top+ methodologies: Competitiveness • Global Procurement activities centralized • New Manufacturing Concept: Sold or closed 5 factories in U.S., UK, FIN, SWZ and SPA. •
Slide 14: Operational Excellence & Gain Growth Momentum: Customer Focus
FY 2004 to FY 2005 Operational Excellence & Gain Growth Momentum • Growth@SBT program boosts order intake Customer Focus • Vertical market teams and global account management increase customer focus and application know-how • Bundling of One Siemens solutions • Photo Scan: Access to the most importa
Slide 15: Our Way to Success
Our Way to Success SBT has reported improvements Quarter by Quarter On-going year-over-year improvement of profitability….. Group Profit in % of Sales 6.5% 4.8% 3.6% 3.8% 2.4% 3.2% 3.6% 2003 2.2% 1.4% 1.6% 2004 1.5% 0.1% 2005 Q1 Q2 Q3 Q4 …coupled with sound cash generation and gaining growth momentu
Slide 16: Maintain Growth, Strengthen Portfolio & Reach Target Margin
FY 2006 to FY 2007 Maintain Growth, Strengthen Portfolio & Reach Target Margin Cost reduction and productivity measures will continue creating a strong base for further profitability improvement Implementation Reduce SG&A through process harmonization and of top+ synergy gains Measures Strengthe
Slide 17: Strengthen Portfolio with Innovation
Strengthen Portfolio with Innovation New product releases strengthen portfolio in all business segments Sinteso Sinteso SiPass New Desigo Web Fire Safety Solutions Access Control Synco Eyetec BC80 Fire Safety Home automation for emerging markets Intrusion detectors Communication capabilities, e.g. B
Slide 18: Strengthen Portfolio with Optimized Business Mix
Strengthen Portfolio with Optimized Business Mix SBT is a solutions and service company Market reality: Market opportunity: Products Largest profit pool in 15% Solution business key to product and service reach end-customers with business high value offerings Solutions Lower margin 50% Service
Slide 19: Optimizing our business mix and building on our strengths
We are optimizing our business mix and building on our strengths A unique offer: Total Building Solutions as integrated with comprehensive for total lifecycle solution offerings Building Automation New Installation Products Fire Safety Maintenance Service Solutions Security Value Add
Slide 20: Our Challenge and Opportunity
Our Challenge and Opportunity Customers and markets with different expectations and requirements Customers with different Our response Markets with different expectations requirements Building Users Vertical Market Solutions Easy to operate system Value Buyer Understand customer processes Segment
Slide 21: Vertical Markets
Vertical Markets Differentiation through industry specific knowledge & experience Selection criteria for vertical markets / industry sector Market Attractiveness Differentiation Potential Differentiation Capability Growth and margin Customer / Industry with SBT has unique offerings / potential
Slide 22: Vertical Market Pharma
Vertical Market Pharma Differentiation through excellence in Compliance & Validation It takes years and Fast time to market, low Customer Requirements: millions of Euros to risk, no business Fast time-to-market develop a successful interruption are key for drug pay-back Compliance and Validation
Slide 23: Vertical Market Hospitality
Vertical Market Hospitality We know how to reach the stars Hotel Owners need: SBT serves its customers Hotel Guests expect: Satisfied guests Through whole lifecycle Comfort High occupation With specific technology Safety & Security Efficient processes With 24/7 service availability
Slide 24: Growth Engines for SBT: Electronic Security – Airports
Growth Engines for SBT Electronic Security SBT a market leader in Airport Security The global Airports demand Electronic Security Technically and economically optimized market is growing solutions at 7% p.a. Integration of systems in different areas, SBT Security has such as passenger infrastruc
Slide 25: Growth Engines for SBT: Port Security and Cargo Tracking
Growth Engines for SBT Electronic Security SBT a front runner in Port Security and Cargo Tracking 60 million containers are SBT installs the new nuclear container moved around the screening system in the Rotterdam Harbor world annually Double-digit Chicago Port of Illinois project opens further grow
Slide 26: Growth Engines for SBT: Energy & Environmental Solutions
Growth Engines for SBT Energy & Environmental Solutions The Kyoto Protocol and national Energy Services is the directives for greenhouse gas reduction fastest growing business field in force companies to increase energy Building Automation: efficiency 8% in 2005 SBT Energy & Energy consumption is a
Slide 27: 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 28: 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 2006, Quarter 1 / Financial Statements” at our Investor Relation
Slide 29: Siemens Investor Relations Team
Siemens Investor Relations Team Marcus Desimoni +49-89-636-32445 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: investorrelations@siemens.com Fax: +49-89-63