The Company. November Siemens AG All rights reserved.

Transcription

1 The Company. All rights reserved.

2 Disclaimer This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as expect, look forward to, anticipate, intend, plan, believe, seek, estimate, will, project or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens management, of which many are beyond Siemens control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Risks in the Annual Report. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forwardlooking statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. This document includes in the applicable financial reporting framework not clearly defined supplemental financial measures that are or may be alternative performance measures (non-gaap-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. All information is preliminary. Page 2

3 170 years of Siemens Restricted

4 Milestones of a 170-year history Company founder, visionary and inventor 1866 The dynamo makes electricity part of everyday life 1959 SIMATIC makes Siemens a leader in automation technology 1983 First magnetic resonance imaging scanner goes into operation 2012 Test operation of the world s largest rotor for offshore wind turbines Werner von Siemens Siemens innovations over the past 170 years 1847 Pointer telegraph lays the foundation of Siemens as a global company 1925 Siemens electrifies the Irish Free State with a hydroelectric power plant 1975 Breakthrough of high-voltage direct current (HVDC) transmission 2010 TIA Portal takes automation a stage further 2017 MindSphere, the cloud-based operating system for the Internet of Things Page 4

5 Fourth quarter of fiscal 2017 Key figures (Continuing operations; in millions of except where otherwise stated) Q Q Change in % Volume Orders 23,663 20,326 16% 1 Revenue 22,299 21,953 1% 1 Profitability and capital efficiency Net income 2 1,293 1,176 10% Return on capital employed (ROCE) % 11.9% Liquidity Q Q Free cash flow 2 2,376 3,570 Employees (in thousands) Sept. 30, 2017 Total 372 Germany 115 Outside Germany Adjusted for portfolio changes and currency conversion effects; 2 Continuing and discontinued operations Results of operations (in millions of ) Power and Gas Energy Management Building Technologies Industrial Business Mobility Digital Factory Process Industries and Drives Healthineers 5 Siemens Gamesa Renewable Energy 5 Orders 3,584 4,050 1,851 2,333 2,949 2,347 3,934 2,791 Revenue 3,649 3,435 1,759 2,233 3,150 2,389 3,705 2,329 Financial Services Profit (92) Profit margin 8.3% 9.1% 12.1% 8.4% 15,9% 2.9% 19.0% (3.9)% 16,1% 4 3 Income before income taxes; 4 Return on equity (RoE; after taxes); 5 Separately managed Page 5

6 Fiscal 2017 Key figures (Continuing operations; in millions of except where otherwise stated) Fiscal 2017 Fiscal 2016 Change in % Volume Orders 85,669 86,480 (2)% 1 Revenue 83,049 79,644 3% 1 Profitability and capital efficiency Net income 2 6,179 5,584 11% Return on capital employed (ROCE) % 14.3% Liquidity Free cash flow 2 4,769 5,476 Employees (in thousands) Sept. 30, 2017 Sept. 30, 2016 Total Germany Outside Germany Revenue by industrial business Healthineers 16% Process Industries and Drives 11% Digital Factory 13% Mobility 10% Revenue by region Asia, Australia 19% Americas 28% Power and Gas 18% Siemens Gamesa Renewable Energy 9% 2 Energy Management 15% Building Technologies 8% Not included: Financial Services Europe, CIS 3, Africa, Middle East (without Germany) 39% Germany 13% 1 Adjusted for portfolio changes and currency conversion effects; 2 Continuing and discontinued operations; 3 Commonwealth of Independent States Page 6

7 Global presence Americas Share of total worldwide Revenue billion 28% Employees 2 76,000 20% Germany Share of total worldwide Revenue billion 13% Employees 2 115,000 31% Europe (excluding Germany), CIS 3, Africa, Middle East Share of total worldwide Revenue billion 39% Employees 2 111,000 30% Close to customers all over the world Asia, Australia Share of total worldwide Revenue billion 19% Employees 2 70,000 19% 1 By customer location 2 As of September 30, Commonwealth of Independent States All figures refer to continuing operations. Page 7

8 Megatrends that are changing our world Digitalization By 2020, the global volume of data will soar to 44 zettabytes, and 50 billion devices will be connected. Source: IDC, The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things, April 2014; Dave Evans (Cisco): The Internet of Things, How the Next Evolution of the Internet Is Changing Everything, April 2011 Page 8

9 Megatrends that are changing our world Globalization In the time span of 20 years, global export volume has more than quadrupled. In 2016, goods worth US$16 trillion were exported. Source: Statista, 2017 Page 9

10 Megatrends that are changing our world Urbanization By 2050, nearly 70 percent of the world population will live in cities; today it s 54 percent. The population of cities worldwide is growing at a rate of about 50 million people per year. Accordingly, investments in urban infrastructure are booming. Source: United Nations, World Urbanization Prospects. The 2014 Revision, New York, published 2015 Page 10

11 Megatrends that are changing our world Demographic change By 2050, the world population will grow from 7.3 billion today to 9.7 billion. The average life expectancy will be 83 years in 2050; today it s 73 years. Source: United Nations, Department of Economic and Social Affairs, Population Division (2015). World Population Prospects: The 2015 Revision, Key Findings and Advance Tables. Working Paper No. ESA/P/WP.241; Statista: Weltbevölkerung, 2016 Page 11

12 Megatrends that are changing our world Climate change At the UN Climate Conference in Paris in 2015, almost all nations of the world agreed to limit anthropogenic global warming to well under 2º centigrade. In the summer of 2017, Earth s atmosphere had the highest concentration of carbon dioxide in 800,000 years. Source: Earth System Research Laboratory, NOAA, 5. Oktober, 2017 Page 12

13 Our claim Ingenuity for life Ingenuity stands for innovation, engineering and genius. For us, it also includes unity: We are united in our efforts, and we are committed to partnering with our customers. For life relates to our role in society: to make real what matters. Ingenuity for life is therefore our unrelenting drive and promise to create value for customers, employees and society. Page 13

14 What we stand for our mission Page 14

15 Vision 2020 our company s strategy program Value Scale up Drive performance Strengthen core Foster ownership culture and leadership based on common values Strategic direction Operational consolidation Optimization Accelerated growth and outperformance Page 15

16 Vision 2020 seven goals GOAL INTENT KPI 1 Implement stringent company governance with effective support functions Live lean governance and drive continuous optimization 1bn cost savings by FY 2016 achieved, continued productivity of 3-5% 2 Strengthen portfolio Sharpen our business focus in electrification, automation, and digitalization Tap growth fields > 8% margin in underperforming businesses 3 Execute financial target system Grow our company value 15-20% ROCE Growth > most relevant competitors 4 Expand global management Get closer to our customers and markets > 30% of Division and BU management outside Germany 5 Be a partner of choice for our customers Foster an intimate and trusting partnership with our customers 1 20% improvement in Net Promoter Score 6 Be an employer of choice Unleash the full potential of our people > 75% approval rating in leadership and diversity in SGES 7 Foster Ownership Culture Ignite pride and passion for Siemens, through a new mindset and equity ownership 50% increase in number of employee shareholders Page 16

17 Our focus is on E-A-D strong growth in D Revenue FY 2017 Market CAGR FY Strategic direction Digitalization Leader Siemens software ~4.0 billion MindSphere Digital services ~1.2 billion +20 % 1 ~+8% Strengthen leadership with a combination of software, platforms, and services Automation Global No. 1 Enhanced automation ~19 billion Classic services ~17 billion ~+3% Expand No. 1 position and utilize it for digitalization Electrification Leader Enhanced electrification ~43 billion +1-3% Differentiate through expanded offerings with automation and digitalization Note: Figures based on Industrial Business; SGRE as of April Growth FY 2016 to FY 2017, rebased; 9% growth for Siemens software excludes Mentor Graphics Page 17

18 Successful execution of digitalization strategy Siemens software and digital services Revenue FY billion FY 2017 growth rate +20% MindSphere Page 18

19 Our digital portfolio Data analysis Design Operate Service Artificial intelligence Siemens software Siemens digital services Simulation tools Cloud and platforms Secure networking Cyber security MindSphere the IoT operating system Digitally optimized automation Digitally optimized electrification Digital twin (products and infrastructure) Page 19

20 Research and development we re investing more and sharpening our focus R&D spending in billions of 4.0 ~+40% 5.2 ~5.6 FY 2014 FY 2017 FY 2018e Cybersecurity Power electronics Autonomous robotics Additive manufacturing Distributed energy systems Software systems and processes Data analytics, artificial intelligence Connectivity and edge devices Simulation and digital twin Blockchain applications Connected (e)mobility Future of automation Energy storage Materials

21 Innovation that s how we shape the future 5.2 billion 38,000 R&D expenditures in FY 2017 R&D employees 1 Inventions and patents Cooperation with universities 7,400 3,600 Inventions 1 Patent applications CKI universities 2 Principal partner universities 1 In FY Centers of Knowledge Interchange Page 21

22 The next generation of innovation an independent unit for startups Capital volume Capital combines the speed and agility of an independent investor with the breadth of Siemens businesses and technologies. The unit doesn t just fund startups; it also connects entrepreneurs with industry experts and a global ecosystem. Create Key technologies Catalyst 1 billion for five years Siemens target markets Artificial Intelligence Virtual reality Robotics and drones Additive manufacturing Innovation areas Energy Infrastructure Industry Page 22

23 Business to Society we make real what matters We serve society by applying our ingenuity for the benefit of people and in the interest of the common good.* That has been the purpose of our company for 170 years. With the Business to Society method, we evaluate what impact our activities have on society and how we contribute to the achievement of the UN Sustainable Development Goals. * Based on a Werner von Siemens quote Page 23

24 How our activities benefit society Investments Contribution to global GDP of about 250 billion Contribution to infrastructure financing of about 26 billion Jobs Support of 4.3 million jobs worldwide 2.2 million of them in developing countries Innovation Investment of 5.2 billion in research and development Environment The technologies of our Environmental Portfolio reduce emissions at customers worldwide by 570 million tons per year Health More than 90 million patients worldwide receive medical treatment with the help of our medical technologies and laboratory tests Compliance We work together with about 90,000 suppliers who comply with our code of conduct Page 24

25 Vision 2020 the five elements of our ownership culture Equity Support long-term, output and profit orientation People orientation Empowerment and trust Honesty, openness and collaboration Ownership culture Values Our foundation Responsible Excellent Innovative Behaviors Respect Focus Initiative and execution Leadership Be bold, decisive and courageous Exemplify Siemens matters Motivate and engage Page 25

26 Siemens as an employer in fiscal 2017 Worldwide, 372,000 people work for Siemens* New hirings totaled 39,000 worldwide Siemens work-study programs provide training for 11,400 trainees and university students worldwide* * As of September 30, Page 26

27 Being an employer of choice Siemens invests about 510 million each year in the training and education of employees. The International Tech program enables more than 100 young people from EU countries as well as Turkey, Egypt, Algeria, Morocco and South Africa to participate in work-study programs in Germany in the fields of electronics and mechatronics Siemens supports employee engagement with employee share programs; 165,000 Siemens employees are already shareholders of the company. In fiscal 2017, 6,470 Siemens employees were enrolled in workstudy programs that combine academic learning with practical experience. Page 27

28 Management Managing Board of Siemens AG Joe Kaeser Roland Busch Lisa Davis Klaus Helmrich Janina Kugel Cedrik Neike Michael Sen Ralf P. Thomas President and Chief Executive Officer Chief Technology Officer Chief HR Officer Chief Financial Officer Governance and Markets Communications Legal and Compliance CIS 1 Middle East Building Technologies Mobility next47 Amerika Power and Gas Power Generation Services Africa Europe Digital Factory Process Industries and Drives Human Resources Asia, Australia Energy Management Global Services Healthineers 2 Siemens Gamesa Renewable Energy 2 Controlling and Finance Financial Services Corporate Development Corporate Technology 1 Commonwealth of Independent States; 2 Separately managed Page 28

29 Management Divisions Willi Meixner CEO Power and Gas Ralf Christian CEO Energy Management Michael Peter CEO Mobility Jan Mrosik CEO Digital Factory Roland Chalons-Browne CEO Financial Services Markus Tacke CEO Siemens Gamesa Renewable Energy 1 Tim Holt Matthias Rebellius Sabrina Soussan Jürgen Brandes Bernd Montag CEO CEO CEO CEO CEO Power Generation Services Building Technologies Mobility Process Industries and Drives Healthineers 1 1 Managed separately Page 29

30 Company structure Divisions Separately managed Power and Gas (PG) Power Generation Services (PS) Energy Management (EM) Building Technologies (BT) Mobility (MO) Digital Factory (DF) Process Industries and Drives (PD) Healthineers Siemens Gamesa Renewable Energy Financial Services (SFS) Managing Board Page 30

31 Power and Gas The Power and Gas Division offers utilities, independent power producers, engineering, procurement and construction companies (EPCs), and oil and gas customers a broad spectrum of products and solutions for the environmentally compatible and resource-saving generation of power from fossil fuels and renewable sources of energy and for the reliable transportation of oil and gas. Leading in power generation FY 2017 FY 2016 Orders in millions of 13,422 19,454 Revenue in millions of 15,467 16,471 Employees 1 46,800 48,700 1 As of September 30 Page 31

32 Energy Management The Energy Management Division is one of the leading global suppliers of products, systems, solutions and services for the economical, reliable and intelligent transmission and distribution of electrical power. The Division s portfolio ranges from systems for the low-voltage and distribution power grid level to smart grids and energy automation solutions to power supplies for industrial plants and high-voltage transmission systems. Partner for efficient energy infrastructure FY 2017 FY 2016 Orders in millions of 13,628 12,963 Revenue in millions of 12,277 11,940 Employees 1 53,300 52,400 1 As of September 30 Page 32

33 Building Technologies The Building Technologies Division is a leading global provider of safe, energy-efficient and environmentally friendly building and infrastructure technologies. As a technology partner, consultant, service provider, systems integrator and supplier, the Division offers solutions for fire safety, security, building automation, heating, ventilation and air conditioning (HVAC) as well as energy management. World leader in building technologies FY 2017 FY 2016 Orders in millions of 6,913 6,435 Revenue in millions of 6,523 6,156 Employees 1 28,100 27,700 1 As of September 30 Page 33

34 Mobility The efficient, safe and environmentally friendly transportation of people and goods by rail and road the Mobility Division bundles all of Siemens transportation-related products, solutions and services. Advanced networked and IT-based mobility solutions and comprehensive know-how are increasing infrastructure availability, optimizing route use and raising travel quality to new levels by rail, on the road, or across multiple modes of transportation. Provided regulatory authorities approve, the planned merger of the Siemens and Alstom mobility businesses will unite two successful and innovative companies with a long tradition in the rail industry. Our aim is to jointly create a European champion and so offer customers unique added value. Shaping the future of mobility FY 2017 FY 2016 Orders in millions of 8,963 7,875 Revenue in millions of 8,099 7,825 Employees 1 28,400 27,100 1 As of September 30 Page 34

35 Digital Factory Helping manufacturers make their digital transformation successful The Digital Factory Division offers a comprehensive portfolio of seamlessly integrated hardware, software and technology-based services to support manufacturing companies worldwide in enhancing the flexibility and efficiency of their production processes and in reducing the time to market of their products. The ultimate goal is the complete integration and digital representation of the physical value chain. The platform for this is called Digital Enterprise. FY 2017 FY 2016 Orders in millions of 11,532 10,332 Revenue in millions of 11,378 10,172 Employees 1 51,500 45,000 1 As of September 30 Page 35

36 Process Industries and Drives As a proven partner, we help customers go to market with their products much faster. We do that by providing innovative, integrated technologies for the entire lifecycle, that measurably increase productivity, shorten time-to-market, and improve the reliability, safety, and efficiency of products, processes and plants. Customers all over the world benefit from our futureproof automation, drive technology, industrial software, and services based on best-in-class technology platforms. Using digital technologies to create added value throughout the entire lifecycle of systems We are advancing the digitalization of the process industry from integrated engineering to integrated operation and digital services. FY 2017 FY 2016 Orders in millions of 9,034 8,939 Revenue in millions of 8,876 9,038 Employees 1 44,800 45,000 1 As of September 30 Page 36

37 Healthineers Next generation healthcare technologies Healthineers 1 enables healthcare providers around the world to deliver high-quality patient care. As a leading global healthcare company, we re continuously developing our portfolio, expanding our medical imaging and laboratory diagnostics offerings and augmenting them with a growing range of healthcare management, consulting and IT services such as advanced therapeutic solutions and molecular in-vitro diagnostics. Siemens Healthineers is proactively developing its digital healthcare services. We help customers succeed in today s dynamic healthcare market by creating new business models that maximize opportunities and minimize risks for healthcare providers. FY 2017 FY 2016 Orders in millions of 14,218 13,830 Revenue in millions of 13,789 13,535 Employees 2 47,800 46,200 1 Managed separately 2 As of September 30 Page 37

38 Siemens Gamesa Renewable Energy Siemens Gamesa Renewable Energy 1 is a leading supplier of reliable, environmentally friendly, and cost-efficient renewable energy solutions. The wind turbines offered by Siemens Gamesa Renewable Energy are a worthwhile investment from both a financial and an environmental perspective. Our wind power solutions deliver clean, renewable energy from onshore and offshore installations all over the world. Leader in the renewable energy industry FY 2017 FY Orders in millions of 8,768 7,973 Revenue in millions of 7,922 5,976 Employees 2 25,300 14,500 1 Managed separately 2 As of September 30 3 Relates to the former Division Wind Power and Renewables Page 38

39 Financial Services The Financial Services Division helps enterprise customers implement investment projects by providing project-related and structured financing as well as leasing and equipment financing. The success of Financial Services is based on a unique combination of risk management competence, technological expertise and reliable financial resources. Through our international network of SFS companies, we provide subject to country-specific legal requirements a broad range of financial solutions. Financial solutions for business customers FY 2017 FY 2016 Total assets in millions of 26,390 26,446 Employees 1 3,200 3,200 1 As of September 30 Page 39

40 A strong partner all over the world Germany In fiscal 2017, Siemens supported more than 500,000 jobs 1 Siemens invests about 200 million per year in vocational training in Germany 1 Directly, indirectly and indexed 2 From customers in Germany 3 As of September 30, continuing operations FY 2017 FY 2016 Revenue 2 in billions of Employees 3 115, ,400 For the first time, a portion of the lowvoltage network has been decoupled from the main power grid. In the town of Wildpoldsried, it was possible to provide uninterrupted and stable operation of an island grid. Siemens implemented a microgrid there a regional, self-contained and intelligent power distribution grid. Mitsui Rail Capital Europe (MRCE), a locomotive leasing company, has ordered 30 Vectron locomotives from Siemens. Ten of the units will be delivered for crossborder operations in Germany, Austria, Italy, Switzerland and the Netherlands. Twenty further locomotives will be equipped as direct-current locomotives (Vectron DC) to operate in Italy. Siemens is building an overhead contact line for electrified freight transport on a tenkilometer stretch of freeway in the German state Hesse. The first infrastructure for electric trucks line will supply electricity for the electric drive of a hybrid truck. Page 40

41 A strong partner all over the world Europe, 1 CIS, 2 Africa, Middle East About 90% of technology used for UAE airport logistics comes from Siemens Siemens technology is used to manufacture every second vehicle in South Africa FY 2017 FY 2016 Revenue 3 in billions of Employees 4 111, ,300 The energy company Eni Norge has joined the Siemens Subsea Power Grid Joint Industry Program (JIP). Siemens Subsea is jointly developing a complete subsea power network as part of a Joint Industry Program (JIP). This JIP is one of the main initiatives worldwide for advancing large scale subsea processing for the oil and gas industry. 3 From customers in Europe (excluding Germany), CIS, Africa, Middle East 4 As of September 30; continuing operations Copyright: Zermatt Bergbahnen AG 1 Excluding Germany 2 Commonwealth of Independent States Page 41 Siemens is modernizing 15 converter transformers at the Cahora Bassa dam in Mozambique. The transformers form part of the HVDC transmission link built in the 1970s that transmits electrical power from the hydropower plant over a distance of 1,450 kilometers. Copyright: Beppe Giardino Siemens Gamesa will supply a capacity of 752 MW to DONG Energy for Borssele 1 and 2 offshore wind power plant. The order calls for the installation of 94 wind turbines by The power supplied by this facility will be sufficient to cover the annual electricity demand of one million households.

42 A strong partner all over the world Americas Siemens is responsible for 80% of Argentina s new electrical energy capacity Siemens employs 50,000 people in the U.S. and invests $1 billion per year in R&D FY 2017 FY 2016 Revenue 1 in billions of Employees 2 76,000 72,600 Siemens will automate and power San Diego s Mid-Coast Corridor light rail extension project. This project expands Siemens close cooperation with MTS, the company s largest U.S. light rail vehicle customer. MTS purchased a total of 244 light rail vehicles that were built at the Siemens plant in Sacramento. 1 From customers in the Americas 2 As of September 30; continuing operations Siemens will invest more than $20 million per year in an R&D hub in Chicago, with a focus on developing cloud and IoT related applications that support building management and automation platforms. Chicago is considered one of the world s top 10 tech hubs. The Atellica Solution for advanced Diagnostics Analyzers from Siemens Healthineers is now available in the U.S. The Atellica Solution provides laboratory diagnostics professionals more control and simplicity so that they can concentrate on clinical outcomes. Copyright: Presidencia Copyright: de BP la Nacion Images (Argentina) Page 42

43 A strong partner all over the world Asia, Australia More than 4,500 local R&D experts and engineers work for Siemens in China Siemens automation technology is used in 1 of every 3 industrial and manufacturing plants in Singapore FY 2017 FY Revenue 1 in billions of Employees 2 70,000 62,700 Siemens Gamesa has been commissioned to develop India's first large commercial hybrid wind-solar project, where a 28.8-MW solar facility will be connected to an existing 50 MW wind farm. This is the first project of its kind for the company. 1 From customers in Asia, Australia 2 As of September 30; continuing operations Siemens China will lead the company's global research in autonomous robotics. As part of its innovation strategy, Siemens and Tsinghua University will jointly set up a robotics research center in Beijing. For a fifth major rail order in Bangkok, Siemens will deliver rail technology for the extension of Bangkok's Blue Line Metro including 35 three-car metro trains, the signaling system, the traction power supply and complete equipment for the depot. Page 43

44 Contact Siemens AG CC TL SP Werner-von-Siemens-Straße Munich Germany contact@ For further information: /about /press /investors /innovations /careers Page 44