Creating sustainable value and growth through innovation

Transcription

1 Creating sustainable value and growth through innovation Dr. Heinrich Hiesinger Member of the Managing Board of Siemens AG CEO Industry Sector International Press Conference

2 A tough and volatile business environment Development of GDP and Industrial GDP from 2005 till % 4.0% 1.9% 1.3% % World, real change yoy GDP Source: Global Insight -9.5% Industrial GDP GDP projection was adjusted month by month We expected the crisis and experienced a free fall Industry was hit even harder by industrial GDP slump of ~10% Page 2

3 Challenges remain: Low capacity utilization in our customer end markets slows down recovery Industry Output Outlook 20% 15% 10% 5% 0% -5% Forecast for global GDP is positive Short-cycle industries have bottomed out -10% -15% -20% Monthly Values (not seasonal adj.) 3-Month Moving Values Customers focus on OPEX optimization -25% However 90% 85% 80% 75% 70% 65% 60% Q Capacity Utilization GER Q ECU 16 Q1 Q2 USA Q3 72% 71% 71% Q4 Long-cycle businesses continue to shrink High overcapacities in many industries slow upturn Positive impact on our business when customers expand capacities Page 3

4 A view of 2010: Some volume stabilization Market volumes by industry Outlook bn % -2% Rail Infrastr.: 11% Marine: -28% -4% Commercial Bld.: -1% Residential Bld.: -24% -30% Metal & Mining: -30% Chemical: -33% -9% Food & Beverage: -1% Automotive: -26% Machinery: -28% % +7% -5% -7% -4% Transport Building Process Manufacturing Return to 2008 market level unlikely over medium term Transport market remains stable Building market and process industries still in the downturn Manufacturing industries have seen their bottom with growing transport market Page 4

5 Growth is driven from emerging markets Changing market environment Emerging markets are strongest growth contributors China keeps growing also driven by governmental support Middle East and India grow with decent growth rates Brazil sees growth due to large projects (Soccer world cup, Olympics) USA and Germany will reach bottom in 2010 Industry Market size Industry Market growth till 2015 USA 20% 16% China Germany India 12% 10% 3% 25% 0% 8% Future success requires winning in Brasil, China, India and Middle East Page 5

6 Siemens Industry is well-positioned in the growth regions e.g. China Some examples Tianjin: Motor and drives plant All-in-one facility with production, R&D, engineering, supply chain functions and customer support for China and East Asia Suzhou: Second largest IA plant worldwide Urumuqi Kunshan: Specialty lighting competency centre for China and regional markets Shanghai: Global operation center for cold band Hong Kong: Global LED architectural lighting competence center (Traxon) 62 Sales offices 22 Factories 13 R&D locations 7 Training centers Xining Panzhihua Kunming Baotou Yinchuan Nanning Huhhot Shenyang Anshan Harbin Changchun Lanzhou Lianyungang Xuzhou Luoyang Yangzhou Huainani Nantong Xi'an Zhengzhou Yangzhong Changzhou Hefei Suzhou Nanjing Taicang Shanghai Wuhu Kunshan Ningbo Mianyang Yichang Wuhan Hangzhou Shaoxing Chengdu Chongqing Wenzhou Changde Zhuzhou Yibin Changsha Nanchang Fuzhou Guiyang Beijing Tianjin Dalian Tangshan Tanggu Shijiazhuang Taiyuan Zibo Qingdao Handan Jinan Jining Panyu Guangzhou Foshan Dongguan Zhuhai Shenzhen Zhanjiang Yantai Xiamen Shantou With 21,000 employees and 22 factories China is the third biggest country of the Industry Sector Haikou Page 6

7 Product portfolio for emerging markets is expanding rapidly: Examples for China Cerberus ECO FS18 in Beijing Cost optimized fire detection system SINUMERIK 802 in Nanjing Completely digital control for standard turning and milling applications Simatic S7-200 CN in Nanjing Cost optimized Micro controller Automated rolling mills in Shanghai Build-up of local product range for long rolling mills Urumuqi Harbin Changchun Shenyang Anshan Beijing Huhhot Dalian Tangshan Baotou Tanggu Tianjin Yantai Yinchuan Shijiazhuang Taiyuan Zibo Qingdao Handan Jinan Xining Jining Lanzhou Xuzhou Lianyungang Luoyang Yizheng Huainani Nantong Xi'an Zhengzhou Yangzhong Changzhou Hefei Suzhou Taicang NanjingWuxi Kunshan Wuhu Ningbo Mianyang Yichang Wuhan Hangzhou Shaoxing Chengdu Chongqing ChangdeZhuzhou Wenzhou Yibin Changsha Nanchang Fuzhou Panzhihua Guiyang Xiamen Shantou Kunming Panyu Guangzhou Foshan Dongguan Nanning Zhuhai Shenzhen Zhanjiang Haikou Page 7

8 We stick to our long-term strategy: Creating value through technological leadership Trends Our answers Benefits Resource scarcity Environmental care We automate industry lifecycles Increased productivity For our customers: Competitiveness Increasing energy demand Enhanced flexibility For our shareholders: Performance Productivity improvement Urbanization / increasing mobility We care about the environment Improved efficiency For society: Sustainability Page 8

9 Superior customer benefits through Productivity Sinumerik SIMETAL Ultimate EAF 30% productivity increase through uniform CAD / CAM / CNC process chain -30% 50% higher productivity compared to conventional electric arc furnace -50% Gantry Milling Machine, EiMa Maschinenbau Electric Arc Furnace, Gebze Turkey Page 9

10 Superior customer benefits through Flexibility Profinet and Profisafe Dynamic traffic control Up to 30% faster time-to-market of A8 through flexible automated robot cells -30% 35% reduction of driving time by optimized traffic flow -35% Audi AG City of Muenster, Germany Page 10

11 Superior customer benefits through Efficiency Energy contracting for buildings Energy optimization in industrial plants Saving of energy costs: 57% less heating and 76% less water usage -76% water Saving of energy costs of 460,000 p.a. 9% more energy efficiency -9% -57% heating Theresienbad Vienna, Austria Felix Schoeller jr., Canada Page 11

12 Innovation stays the basis of our business R&D expenditure Examples of innovation projects bn ~1.8 IA PLM Virtual production planning DT Highly efficient IE2 motors IS First Endless Strip Production BT Integrated video surveillance % of revenue 5.2% of revenue 2010E Comparative competitor (4.8% of revenue) OS MO LED Pico projector Sitras HES trams without overhead contact line and is the prerequisite for increased value through technological leadership Page 12

13 Broad use of technology platforms: Speed up innovation and reduce costs Manufacturing Industries Process Industries Buildings Transport Controls Platform based on SIMATIC Packaging machines S Cement plants CEMAT Controller for Energy mgmt., Global Mgmt Station Rail interlocking SICAS PN Inverter Platform based on SINAMICS Printing machines S120 Variable speed drive for Cold rolling mills SM 150 Air conditioning SED2 Marine drives GL 150 SW-Platform based on Teamcenter Product and manufacturing process mgmt. Software application for Recipe and plant asset management Asset management Maintenance, repair and overhaul Page 13

14 Selected fields of innovation underline our strategic direction Industrial software + automation PLM MES Simatic Drive systems Gearless wind turbines Trains, ecars Production/conveying systems Smart buildings Energy efficiency portfolio Building automation EuTech (energy consultancy) Water for industry Pharmaceuticals Pulp & Paper Metals & Mining Enhanced flexibility, Increased productivity Improved efficiency Improved efficiency Improved efficiency, Increased productivity Page 14

15 Innovation as the key to create Our sustainable prioritiesvalue and growth 1 Customer value proposition Increased productivity Enhanced flexibility Improved efficiency 2 Technology platforms Automation competence across Divisions along the entire lifecycle More innovation speed at reduced costs 3 Customer focused innovation Expansion of product portfolio for emerging markets Stronger focus on specific industry end markets Page Dr. Heinrich Hiesinger