We deliver what we promise!

We deliver what
we promise!
Roland Fischer
CEO
Fossil Power Generation Division
Capital Market Day Siemens Energy
Charlotte, December 11, 2012
© Siemens AG 2012. All rights reserved.
Safe Harbour Statement
This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of
revenue and new orders; book-to-bill ratio; Total Sectors profit; return on equity (after tax), or ROE (after tax); return on capital employed (adjusted), or ROCE (adjusted); Free cash
flow, or FCF; cash conversion rate, or CCR; adjusted EBITDA; adjusted EBIT; adjusted EBITDA margins, earnings effects from purchase price allocation, or PPA effects; net debt
and adjusted industrial net debt are or may be such non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation as alternatives to
measures of Siemens’ financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that
report or describe similarly titled financial measures may calculate them differently. Definitions of these supplemental financial measures, a discussion of the most directly
comparable IFRS financial measures, information regarding the usefulness of Siemens’ supplemental financial measures, the limitations associated with these measures and
reconciliations to the most comparable IFRS financial measures are available on Siemens’ Investor Relations website at www.siemens.com/nonGAAP. For additional information,
see supplemental financial measures and the related discussion in Siemens’ most recent annual report on Form 20-F, which can be found on our Investor Relations website or via
the EDGAR system on the website of the United States Securities and Exchange Commission.
This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forwardlooking statements. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,”
“project” or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to stockholders 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, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect Siemens’ operations,
performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results,
performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historical trends. These factors include in
particular, but are not limited to, the matters described in Item 3: Risk factors of our most recent annual report on Form 20-F filed with the SEC, in the chapter “Risks” of our most
recent annual report prepared in accordance with the German Commercial Code, and in the chapter “Report on risks and opportunities” of our most recent interim report.
Further information about risks and uncertainties affecting Siemens is included throughout our most recent annual and interim reports, as well as our most recent earnings release,
which are available on the Siemens website, www.siemens.com, and throughout our most recent annual report on Form 20-F and in our other filings with the SEC, which are
available on the Siemens website, www.siemens.com, and on the SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results, performance or achievements of Siemens may vary materially from those described in the relevant forward-looking statement as being
expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking
statements in light of developments which differ from those anticipated.
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.
Page 1
December 11, 2012
Capital Market Day Energy
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
Siemens Fossil Power Generation
Leading portfolio and market position
Fossil Power
Generation
Products
Energy
Solutions
Instrumentation
and Electrical
Roland Fischer
Large-scale gas turbines,
steam turbines,
generators
Power plant solutions
Gas turbines
All solutions through to
Instrumentation and
Controls
Steam turbines
complete power plants:
Generators
CCPP, GTPP
Instrumentation and
electrical control systems
for all types of power
plants
Gasifiers
STPP
IT solutions
Service
No. 1
No. 1
in advanced GT frames (#)
in GT solution business (GW)
No. 1
Service
Page 2
December 11, 2012
Capital Market Day Energy
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
Solid revenue and leading margin
Orders
Revenue
€bn
€bn
Growth1)
+26%
-20%
12.5
12.1
Growth1)
-17%
9.6
10.2
1.24
1.04
1.22
1.00
FY 2009
FY 2010
FY 2011
FY 2012
bookto-bill
FY 2009
FY 2010
FY 2011
FY 2012
Profit
Underlying Margin
Free Cash Flow and Cash Conversion Rate
CCR
20.7%
€m
11.2
9.8
11.1
9.9
+5%
+8%
-3%
0.7
1.5
0.9
0.8
18.1%
15.6%
12.3%
1,206
2,196
2)
1,999
1,933
1,769
1,449
1,619
882
in %
of Rev.
1)
2)
2)
€m
12.3%
15.2%
19.6%
17.3%
FY 2009
FY 2010
FY 2011
FY 2012
FY 2009
year-on-year on a comparable basis, i.e. excluding currency translation and portfolio effects
Profit w/o Impact AREVA disposal gain and AREVA arbitration result
Page 3
December 11, 2012
Capital Market Day Energy
FY 2010
FY 2011
FY 2012
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
Excellent long term market perspective
Over the next 20 years about today’s existing Large Fossil1) capacity will be added
Installed Large Fossil1) power generation market capacity – World
in GW
2,643
730
>70%
>70%
2,803
760
492
144
929
43
13
21
312
238
302
>70%
>70%
4,516
1,178
1,186
RoW
240
258
326
325
494
Europe
418
418
359
Middle East
672
672
784
785
USA
USA, Europe
Replacements - Gas power plants
the ideal fit
China, India
Growth - Demand for cheap power
495
495
India
761
1,206
1,207
90
90
556
2011
More than 70% thereof will
be added in USA, Europe, China,
India and Middle East
Retirements New capacity
additions
China
Middle East
Growth and Efficiency - Gas as
backbone
2030
1) GT>60MW, ST>250MW
Page 4
December 11, 2012
Capital Market Day Energy
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
Gas - The fuel of choice
Reserves are substantially increasing due to new unconventional gas reserves
World gas reserves
Middle East
2)
2.7
Russia
2.0
China
1.4
China
1.1
United States
potential net exporter
Europe
0.7
Mexico
0.7
Australia
0.5
South Africa
0.5
Enough to supply more than 3500
SGT6-8000H in CCPP for 20 years
[5000 h/a]
0.4
December 11, 2012
USA
Potential net exporter of gas by
more than tripling its reserves driven
by shale gas
proved reserves
shale gas
[quadrillion cubic feet 1)]
Sources: IEA, HIS CERA, indexmundi
1) figures may vary depending on source; 2) still to be explored
Page 5
Increasing the exploitation of shale
gas via auctioning drilling licenses
0.8
Argentina
Algeria
Abundant resources lead to
moderate price development within
the next decades!
Capital Market Day Energy
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
Siemens positioned strongly
in fastest growing gas market
Core market gas is growing beginning 2014 onwards
Gas Power Plant market development – World
in GW
84
72
60
22
3
>60%
>60%
62
27
65
90
35
RoW
10
9
15
17
Europe
Middle
East
22
22
USA
7
8
China
2020
2030
30
28
22
6
7
16
14
8
10
7
7
9
8
11
12
13
13
2012
2013
2014
2015
17
>60%
>60%
Ø 35% market share in
units over 3 years
(FY10-12)
Page 6
December 11, 2012
Capital Market Day Energy
More than 60% of future Gas
market will be located in USA,
Europe, China and Middle East
USA
Local manufacturing secures
market position in home market
North America
Europe
European home market (Full EPC)
served via Fossil Solutions
China
Market served via JV partner
Shanghai Electric (No. 1 in China)
Middle East
Local manufacturing and sales
secure high market share
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
Steam - Second pillar
served indirectly via JV and licenses
Steam – a robust market
Steam Power Plant market development – World
in GW
~70%
~70%
61
50
13
9
~70%
~70%
53
17
10
52
15
59
47
18
RoW
17
India
11
14
20
18
Around 70% of Future
Steam Power Plant market
are located in India and China
China, India
Biggest SPP markets served
indirectly via JV SEC and license
partnership BHEL
13
28
26
26
25
25
China
16
2012
2013
2014
2015
2020
Rest of World
Europe and Middle East - Selective
direct business
2030
Ø 39% market share in
MW over 3 years
(FY 09-11, incl. JV and license partner)
Page 7
December 11, 2012
Capital Market Day Energy
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
The right footprint …
Existing Footprint / Lead factories
Major JV location / strategic partner
Berlin
Germany
Mülheim
Germany
Charlotte
USA
Gas turbines
Engineering
Service
Steam turbines
Generators
Engineering
Service
Gas turbines
Steam turbines
Generators
Engineering
Service
+
+
Shanghai Electric
China
BHEL
India
Gas turbines
Steam turbines
Generators
Gas turbine parts
Steam turbines
Generators
Footprint Extension
Page 8
Dammam
Saudi Arabia
St. Petersburg
Russia
Focus on gas
Focus on Gas
December 11, 2012
… to exploit the
market potential
Capital Market Day Energy
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
Fossil is the only full scope supplier
Markets are becoming more diversified due to different customer and regional requirements:
Flexibility, Efficiency, CAPEX, Plant fit, OPEX, ROI, Reliability, Products & Solutions
REQUIREMENT
Regional
example /
Customer
Siemens
answer
FLEXIBILITY
Lodi Energy Center
California (USA)
Flex-Plant
F-Class
Full load in ~30 min
EFFICIENCY
CAPEX
Changxing
China
Lausward
Germany
Full turnkey
H-Class
CCPP efficiency
>60%
CHP efficiency >84%
Product business
Localized F-Class
low specific price
request ~400 EUR/kW
PLANT FIT
Qurayyah
Saudi Arabia
Product business
World largest CCPP
F-Class (12 units)
Fossil is the only full scope supplier to fulfill all changing market and customer requirements
based on its unique business portfolio
Page 9
December 11, 2012
Capital Market Day Energy
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
Innovation leadership
secures our future competitiveness
Return
Service Business
Introduction
5-2000E(8)
Invest
5-4000F(8)
5-4000F(x)
6-5000F(5)
5-4000F(4)
6-5000F(3)
6-4000F(4)
5-2000E(1-3)
6-2000E(1-3)
6-5000F(4)
5-4000F(7)
Further
development
ongoing
>10 years
5-4000F(9)
Invest
6-5000F(5ee)
>30 years
6-8000H(1.4) 5-8000H(1.4)
Base
technology
program
Unique and sustainable business model
Continuous and strong investment in R&D of €350 - 400m/p.a.
Extend installed base through new products in all frames
Provide additional service business (mods and upgrades)
Page 10
December 11, 2012
Capital Market Day Energy
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
Technology leader in H-Class series
Proven in commercial operation
Up to 5% higher return on investment compared to F-class engine
Customer
Net efficiency
Ramp-up time
CCPP single shaft
<30 min
Operating hours
>18,000
Turbines sold
Turbines in operation
incl. commissioning
Page 11
December 11, 2012
60.75%
Capital Market Day Energy
20
4
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
les
p
am
x
E
Cost Reduction Examples:
Fossil Power Generation Division
Design to Cost in Fossil Frames
Cost Optimization of Steam Turbine for
Combined Cycle Applications
Stringent Modularization
Approach
Increased Efficiency at
lower cost (Blade design)
Standardization of 50 and
60Hz frames
Acceleration of feeder plant
concept
(Hungary, Indonesia)
€50m productivity
improvement until 2014
€250m productivity
improvement until 2014
Splitting and Bundling of Supply- and
Erection Contracts
Global Value Sourcing
Market-screening for
components and suppliers in
focus countries
Adaption of sourcing models
on suppliers capabilities
€75m cost reduction
until 2014
Page 12
December 11, 2012
Capital Market Day Energy
Enable Global Value
Sourcing
Bundling of erection
packages
Reduction of project costs
€3m until 2014
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
We deliver what we promise
Grafik Jochen
Page 13
December 11, 2012
Capital Market Day Energy
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division
Reconciliation and Definitions for
Non-GAAP Measures
This document includes supplemental financial measures that are or may be non-GAAP financial measures.
New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on equity (after tax), or ROE (after tax);
return on capital employed (adjusted), or ROCE (adjusted); Free cash flow, or FCF; cash conversion rate, or CCR; adjusted EBITDA; adjusted EBIT; adjusted EBITDA margins,
earnings effects from purchase price allocation, or PPA effects; net debt and adjusted industrial net debt are or may be such non-GAAP financial measures.
These supplemental financial measures should not be viewed in isolation as alternatives to measures of Siemens’ financial condition, results of operations or cash flows as presented
in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures may calculate them differently.
Definitions of these supplemental financial measures, a discussion of the most directly comparable IFRS financial measures, information regarding the usefulness of Siemens’
supplemental financial measures, the limitations associated with these measures and reconciliations to the most comparable IFRS financial measures are available on Siemens’
Investor Relations website at www.siemens.com/nonGAAP. For additional information, see supplemental financial measures and the related discussion in Siemens’ most recent
annual report on Form 20-F, which can be found on our Investor Relations website or via the EDGAR system on the website of the United States Securities and Exchange
commission.
Page 14
December 11, 2012
Capital Market Day Energy
© Siemens AG 2012. All rights reserved.
CEO Fossil Power Generation Division