Heinz-Joachim Neubürger, CFO March 2006

Transcription

1 Heinz-Joachim Neubürger, CFO March 2006 Page 0

2 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, estimates, will or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens control, affect its operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens worldwide to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products or technologies by other companies, lack of acceptance of new products or services by customers targeted by Siemens worldwide, changes in business strategy and various other factors. More detailed information about certain of these factors is contained in Siemens filings with the SEC, which are available on the Siemens website, and on the SEC s website, Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as anticipated, believed, estimated, expected, intended, planned or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated. Page 1

3 Active in six business areas Information and Communications Automation and Control Power Transportation Medical Lighting Communications Automation and Drives Power Generation Transportation Systems Medical Solutions OSRAM Siemens Business Services Industrial Solutions and Services Power Transmission and Distribution Siemens VDO Automotive Siemens Building Technologies 24% 27% 16% 18% 10% 5% 18.5 bn 21.1 bn 12.3 bn 13.8 bn 7.6 bn 4.3 bn Fiscal Year 2005 total sales of Operations Groups excluding Other Operations Page 2

4 Key figures in billions of euros Q1 FY06 FY 05 FY 04 New Orders % % 75,789 Sales % % Group Profit from Operations (10)% (9)% Income from continuing operations (25)% % EPS from continuing operations (in euros) 0.92 (0.30) 3.43 (0.44) 3.87 Net Cash from operating and investing activities (0.820) (1.489) (4.504) Dividend (in euros) % Income from continuing operations, excluding a positive effect related to Infineon share sale and a goodwill impairment. Including these effects, income from continuing operations for FY 04 amounts to EUR bn. Page 3

5 Fit4More: 4 enabling us to live up to our vision Fit 4 More: Profit & Growth - Program Performance and Portfolio Operational Excellence People Excellence Corporate Responsibility Solve Mobile Devices Finalize strategic reorientation of I&C i.e. Com and SBS Strategic reorientation of L&A Reach target mar - gins at all Groups Build portfolio for 2x GDP growth Execute Siemens Management System (powered by top + ) with focus on Innovation Customer Focus Global Competitiveness Achieve high performance culture Establish Leadership Excellence Program Increase global talent pool Strengthen expert careers Execution by April 2007! Achieve Best in Class in Corporate Governance Business Practices Sustainability Corporate Citizenship Page 4

6 Building the future portfolio Fit 4 More: Profit & Growth - Program Performance and Portfolio Operational Excellence People Excellence Corporate Responsibility Solve Mobile Devices Finalize strategic reorientation of I&C i.e. Com and SBS Strategic reorientation of L&A Reach target margins at all Groups Build portfolio for 2x GDP growth Organic growth A&D Med Siemens ONE Exogenous growth VA Tech CTI Molecular Imaging Flender Growth Platforms US Filter Bonus Energy Page 5

7 Strategic goals of M&A activities Complement existing business portfolio adjacencies Create growth platforms by broadening the existing portfolio Enhance regional presence fitting to worldwide strategy Speed up consolidation / market penetration Gain selected specific R&D competence support our profitable growth strategy Page 6

8 Track record of major M&A activities in billions of euros Year Significant strategic goal Purchase price (EV) Assessment Alstom 2003 Strengthening position in industrial turbines 0.9 success Efficient 2001 Strengthening position in DSL broadband access market 1.6 write-off Atecs 2000 Strengthening position in automotive, logistics and industrial turbines 6.8 success Shared Medical 2000 Expansion into healthcare IT 2.1 on-track Acuson 2000 Strengthening position in ultrasound 0.8 on-track Westinghouse 1998 Strengthening position in fossil-fired power plants, equipment and services worldwide 1.0 success Electrowatt Sylvania Strengthening position in the Building Systems Division Strengthening position in the US market Transactions have been proven to be successful! on-track success Page 7

9 Strengthening our portfolio through active portfolio management Page 8

10 300 Global footprint: basis for competitiveness Employees by region (in thousands) 250 Germany 36% Germany 200 International 150 FY % Americas 25% 33% Employees (thousands) Sales (billions of euros) Major facilities Europe (excl. Germany) 27% 33% 21% % 21% 25% Others 8% 6% Asia-Pacific 12% 13% 15% As of September 30, 2005 Page 9

11 Well prepared to master global trends Water 1.2 billion people without drinking water 2.4 billion people not connected to waste water systems 40% increase in water consumption by 2025 Siemens today Drinking water treatment Water distribution Wastewater treatment Power More than 60% increase in worldwide energy demand by 2030 Increase of CO 2 emission risk to global climate Siemens today Strong No. 2 in power technologies worldwide Complete range of offerings for wind power, hydropower, biomass, fuel cells and fossil fuels Trendsetter in intelligent power generation and distribution Low-loss electricity transport Page 10

12 Well prepared to master global trends Mobility 2010: Per passenger airline mileage will double compared to 1995 Americans spend 3.5 billion hours a year stuck in traffic jams Siemens today High-performance rail systems Telematics solutions Fleet management Communications solutions Security Need for more efficient urban security systems Larger and more frequent events in megastadiums Siemens today Sole supplier of integrated electronic security solutions Ticketing systems Biometric recognition systems Page 11

13 Well prepared to master global trends Healthcare Percentage of 80+ generation to grow globally Healthcare costs in industrialized nations rise to 3.8 trillion in 2010 (2002: 2.9 trillion) In Germany, healthcare costs account for 10.7% of GDP Siemens today No. 1 in healthcare IT Technology leader in imaging systems Innovation leader in healthcare processes Industry Increasing consumption of oil (until 2030 CAGR 1.8%), natural gas (2.5%) and coal (1.6%) to fuel global energy demand requires efficient systems and solutions for mining industries Increasing world population requires efficient production and supply of food and goods Siemens today Leading solution provider for mining, oil & gas industries No. 1 in industry automation Page 12

14 Taking part in infrastructure growth in China New Orders FY05: 4.1bn (up 40%) Sales FY05: 3.2bn (up 19%) Doubling of FY04 sales in medium-term expected Long-term investment of 1bn in years to come Urumqi Office FY 2004 Significant expansion of manufacturing, R&D and software development Intensification of global purchasing Overview 2005 Sales (in millions of euros) ~3,200 Employees 31,000 Regional Offices 51 Companies 45 New office FY 2005 Operating company Southwest Liuzhou Foshan Nanning Jiangmen Haikou Northeast South Xiamen Shantou Guangzhou Dongguan Shenzhen Changchun Shenyang Jinzhou Huhhot Tangshan Dalian Baotou Beijing Tanggu Tianjin Yantai Shijiazhuang Yinchuan Taiyuan Zibo Qingdao Jinan Jining Lanzhou North Luoyang Xuzhou Xi an Zhengzhou Nanjing Nantong Hefei Suzhou Wuxi Shanghai YichangEast Yangzhou Ningbo Mianyang Wuhan Hangzhou Jinhua Chengdu Chongqing Changde Wenzhou Nanchang Yibin Changsha Fuzhou Panzhihua Kunming Guiyang Guilin Zhuhai Harbin Page 13

15 Siemens in India: a US$ 1bn company Siemens represented across India with 19 sales offices, 12 factories, ~110 authorised service centres/ partners, ~375 dealers, ~55 system houses Siemens Ltd. most valued foreign company listed in India Siemens A&D: No. 1 in India with 12% market share, doubled sales over the last 2 years India power market with double digit growth in coming years due to high investments in T&D grid Overview 2005 Sales (in millions of euros) ~800 Employees 12,000 Regional Offices kv Substations kv Substations 765 kv Substations values in thousand MVAs Page 14

16 Russia: good prospects Key facts about our recent investment in Power Machines Investment in Power Machines: Siemens acquired 20.62% in Power Machines from major shareholder Interros Siemens is now shareholder with 25% plus one share Overview 2005 Regional Companies Representative Offices Branch offices Group Companies / JVs / Capital investments Sales (in millions of euros) ~1,200 Employees 4,000 Regional Offices 30 Others 20% Siemens 25% Interros 30% RAO UES 25% Power Machines shareholder structure after Siemens rising investment Key facts about Power Machines: Engineering & Manufacturing for gas turbines, steam turbines and generators Power plants installed in 87 countries Sales of US$ 662 mn in FY2004 Employees: 13,000 Page 15

17 Outlook: sights set on targets for 2007 Strategic reorientation with focus on megatrends and the growth markets of tomorrow Continuous rigorous execution of Fit4More program Boosting our power of innovation to drive organic growth Well on track to continue growing profitably Page 16

18 Our vision setting the pace A growth company that provides every customer with the highest sustainable value. One of the world's most successful companies in the electrical industry. Number one or two in all of its businesses. Technology leader in the global electrical industry. One of the most valuable companies in the world. Attractive to the best and brightest in the world. Our employees are proud of their company. Committed to an ambitious value code: Humaneness, equal opportunity, strict ethical standards in all business dealings. Page 17

19 Appendix Page 18

20 Communications (Com) Sales (in millions of euros) Group profit margin Target: 8-11% (in millions of euros) FY 2005 Sales 13,141 12,238 12, % 13, % Orders 13,802 Group profit 454 *) Figures not consolidated -2.0% 2003 *) No. 1 IP PBX systems No. 1 UMTS networks (with partner NEC) No. 1 Wireless modules No. 1 IP convergence for carriers Employees 55,000 Americas Asia-Pacific Sales by region Others 13% 16% 15% 21% 35% Germany Europe (excl. Germany) Page 19

21 Siemens Business Services (SBS) Group profit margin 6,034 5, % Sales (in millions of euros) Target: 5-6% 5,205 4,716 5, % 0.2% 0.8% No. 1 Outsourcing partner in the European media business -12.8% 2005 No. 1 IT service provider in the German financial sector No. 1 Solutions provider in discrete manufacturing in West. Europe (in millions of euros) FY 2005 Sales 5,373 Orders 6,531 Group profit -690 Employees 39,000 Solution Business Product Related Services Sales by business field 25% 23% 52% Operation Related Services Page 20

22 Automation & Control: The Consistent Automation Solution ERP Enterprise Resource Planning >=110kV MES Manufacturing Execution System Medium Voltage Automation TIA TIP Low Voltage A&D PTD SBT Data Management Engineering Communication Threefold Consistency Threefold Customer Benefit Cost Reduction Time Advantage Efficiency Advantage Automation and energy management in process / manufacturing industries, functional buildings, infrastructure Page 21

23 Power: The future energy landscape will be environmental-friendly and integrated Gas Liquefaction LNG Deep Sea Exploration Gas To Liquids GTL Off-shore Windpark Unconventional Oils (tar sands, oil shales) Nuclear Power Plant Flue Gas Cleaning (Scrubbers, Mercury) Hydrogen Economy Integrated Gasification IGCC Synfuels from Gasification Power Plant Dispatch Optimization CO 2 Separation/Deposition System Load Management Fuel Cells Page 22

24 Medical: New business opportunities are large and fast growing (in billions; currency adjusted) ~ 130 New potential focus areas, e.g.: Contrast media In vitro diagnostics (incl. Biochips and mass spectroscopy) Tissue engineering Major market segments currently served ~ 96 ~ 61 ~ % p.a. +6% p.a. ~ Page 23

25 Med: Soarian and Syngo cover the continuum of care... Resource planning Administrative Cycle Bill 23,000 Soarian users on a daily basis, 72+ live customers, over 1 billion patient results converted Diagnostic Cycles ADT ADT Care Cycles POE Soarian TM Document Radiology Laboratory Ward ECG Clinical Cycles Station Intensive Rehabilitation syngo TM OR, Onco, Cardio syngo TM Therapeutic Cycles syngo TM... combining the diagnostic, therapeutic and care cycles, with the clinical and administrative cycles Soarian TM syngo TM Page 24

26 SV: outperforming in difficult environment Total cost reduction rate: 9% on average Comfort/Safety OEM price reduction 3% - 4% p.a. Total cost reduction FY : 3.4 bn Communication Intra Car Infotainment /Navigation HMI Affordability Comfort Passive Safety Electric energy mgmt. Workload manager Always on Key less cockpit Improved Diagnostics E/E standards Gasoline/Diesel E/E standards HW standards E/E standards Zero emissions Alternative Fuels/ Propulsion Propulsion ADAS-Safety Platforms (passive safety) Zero HW standards 1st gen ADAS Active Safety accidents New production concepts Augmented Reality Affordability Damping Steering Braking Chassis Zero Emissions Zero Accidents Always on Page 25

27 Osram: applications for future lighting business Illumination Visualization Sensing Special 3%* 10%* 6%* 6%* Making something visible Use light to display any type of information Light is detected or detects something Other applications from material and water treatment to medical e.g. energy saving lamps, high-brightness LEDs, headlights for automotive,... e.g. backlighting for electronic devices, high-tech lamps for projection,... e.g. sensors for automotive applications (rain sensors, distance control),... e.g. water purification systems (UV light), purification of wafer,... Megatrends: Demographic Change and Urbanization * Market CAGR ( ) / estimation by OSRAM Page 26

28 Osram: energy saving as innovation driver Innovation pipeline / customer benefit: Compact fluorescent lamps Saves up to 80% energy* + intelligent electronic components IRC lamps More light with less energy (e.g. XIR xenon lamps designed for operating theater lighting) * In comparison to traditional light bulb LEDs Osram s thin film technology enables that almost all the light is emitted at the surface Page 27

29 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 1 / Financial Statements at our Investor Relations website under ROE (Return on equity) margin for SFS was calculated as SFS income before income taxes divided by the allocated equity for SFS. Allocated equity for SFS as of September 30, 2005 was 983 million. See also Siemens Form 20-F at our Investor Relations website under The allocated equity for SFS is determined and influenced by the respective credit ratings of the rating agencies and by the expected size and quality of its portfolio of leasing and factoring assets and equity investments and is determined annually. This allocation is designed to cover the risks of the underlying business and is in line with common credit risk management standards in banking. The actual risk profile of the SFS portfolio is monitored and controlled monthly and is evaluated against the allocated equity. Siemens ties a portion of its executive incentive compensation to achieving economic value added (EVA) targets. EVA measures the profitability of a business (using Group profit for the Operating Groups and income before income taxes for the Financing and Real estate businesses as a base) against the additional cost of capital used to run a business, (using Net capital employed for the Operating Groups and risk-adjusted equity for the Financing and Real estate businesses as a base). A positive EVA means that a business has earned more than its cost of capital, and is therefore defined as value-creating. A negative EVA means that a business is earning less than its cost of capital and is therefore defined as value-destroying. Other organizations that use EVA may define and calculate EVA differently. A reconciliation of EVA may be found on our Investor Relations website under Page 28

30 Siemens Investor Relations Team Marcus Desimoni Frank Heffter Irina Pchelova Christina Schmöe Susanne Wölfinger Webpage: Investor Relations Fax: Page 29