Analyst Meet 2010-11 Siemens Ltd. November 28, 2011 Page 1 - - PowerPoint PPT Presentation

Page 1 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Analyst Meet 2010-11

Siemens Ltd. November 28, 2011

Page 2 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Operational Highlights Financial Analysis Future Outlook

Page 3 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

‘India is at a central point of our global growth strategy’

India in spotlight

“India is at a central point of our global growth strategy, both in terms of its vibrant domestic market and as a manufacturing base for the global market … India’s contribution to Siemens’ global revenues has been steadily rising. … We expect the country to play an even larger role in our global operations in the future… Siemens is excellently positioned to capture an above-average share of the growth taking place in these markets.”

• Mr. Peter Loescher, President and CEO,

Siemens AG (September 2011)

Page 4 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Our key thrust areas

Innovation

Examples:

• 1. 100th Gas Insulated Switchgear Substation
• 2. reverse-osmosis machines for water

purification

Base-level strategy

• 1. Order intake doubled as percentage of overall

new orders – 5% to 10%

• 2. On track to achieve target of €1 billion sales

from SMART by 2020

Environmental solutions

Examples:

• 1. Traffic signaling with low-voltage technology
• 2. Monitoring & control systems for cooling / air

quality

Order intake for SMART doubled

Page 5 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Operational Highights

FY 2010-11 was year of moderate

growth amid turbulent macro- economic situation

All three Sectors posted steady

• results. Industry grew by 12%,

Energy by 42% & Healthcare by 39% topline.

Initiatives to increase focus on

vertical expertise, consolidate

• perations with operational

synergies, value-added services

Moderate, stable growth in turbulent macro-economic situation

Page 6 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Operational Highlights & Sector Performances Financial Analysis Future Outlook

Page 7 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Financial Highights of Siemens Ltd.

In Rs. Billion

ROCE

Sep 10 Sep 11 25.9% 22.5%

EPS

Sep 10 Sep 11 24.53 24.95

P/E

Sep 10 Sep 11 33.43 33.73

Rs 6 Rs 5 Dividend 2% 2% 8”454 8”272 Profit After Tax + + / / - % 2011 2011 2010 2010 1% 1% 12”750 12”587 Profit Before Tax 0.5% 0.5% 11”974 10% 11”917 13% Profit from Operations (% of Sales) 28% 28% 119”419 93”152 Sales

• 1%
• 1%

122”886 124”305 New Orders

Page 8 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Stable Order Value

(in Rs. Billion)

124”3 122”9

44%

• 24%

35%

• 1%

Page 9 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Order Value - Normal and Major projects

Major project in Energy include Qatar VII, Qatar IX, UNO Sugen and D Gen

• 60%

25% 124”305 122”886

• 1

%

Uno Sugen 6”3 received in Q4 2010

Page 10 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

9''4 15''5 16''8 8''3 12''7 12''0 10''8 11''5 16"7 30''1 41''2 82''0 95"7 87"2 88"0 124"3 122"8 '94-95 '95-96 '96-97 '97-98 '98-99 '99-00 '00-01 '01-02 '02-03 '03-04 '04-05 '05-06 '06-07 '07-08 '08-09 '09-10 '10-11

Steady New Order Bookings

(in Rs. Billion)

Near-recession R e c

• v

e r y Growth moderation

Page 11 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Steady growth in Sales

Sep 10 Sep 11

41.8 46.9 43.2 61.4 7.5 10.5 0.5 0.6

Industry Energy Healthcare SRE & Others 39% 42% 12%

93”2 119”4

28%

(in Rs. Billion)

Page 12 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

8''7 11''7 17''5 9''9 10''5 11''1 11''6 12''9 14''2 17''9 27''4 45''1 77"2 83"0 83"9 93"2 119"4 '94-95 '95-96 '96-97 '97-98 '98-99 '99-00 '00-01 '01-02 '02-03 '03-04 '04-05 '05-06 '06-07 '07-08 '08-09 '09-10 '10-11

Sales up 10 times in 10 years; growth continues

• n higher base in last 3 years

(in Rs. Billion) Consistent growth Exponential growth

Page 13 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Short cycle product business continues healthy growth Mining, marine, steel & cement sectors experience slow down. Commodity price increases affect profitability. FY 2010 (Rs. Bn) FY 2011 (Rs. Bn) +/- Orders 39.2 52.9 35% Sales 41.8 46.9 12% Profit from Operations (% of sales) 3.9 9% 3.9 8% 1%

Industry Sector

Profitability impacted due to cost overruns, commodity prices and mergers

Page 14 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Energy Sector

FY 2010 (Rs. Bn) FY 2011 (Rs. Bn) +/- Orders 76.7 58.2

• 24 %

Sales 43.2 61.4 42% Profit from Operations (% of sales) 7.0 16% 7.1 12% 1% Order Intake grows by 11% on comparable basis after excluding large

• rder intakes.

All Divisions register good growth in Sales. Profit impacted by low margins on large

• rders, commodity prices & pricing

pressures. Excluding impact of large orders in 2010, orders grew by 11%

Page 15 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Healthcare Sector

FY 2010 (Rs. Bn) FY 2011 (Rs. Bn) +/- Orders 7.8 11.2 44% Sales 7.5 10.5 39% Profit from Operations (% of sales) 0.5 7% 0.5 5%

• 1%

Healthcare business has performed well Profit from operations down due to increased price pressures and merger impact of SHDL Impressive performance in New Orders and Sales

Page 16 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Debtors and Inventory turns

Page 17 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Capital Market Performance FY 2011 Siemens’ outperforms the Sensex Siemens +2% Sensex

• 18%

Market Capitalization 30/9/2010 30/9/2011

• Rs. 275”6
• Rs. 281”2

60 80 100 120

Sep-10 Oct-10 Nov-10 Dec-10 J an-11 Feb-11 Mar-11 Apr-11 May-11 J un-11 J ul-11 Aug-11 Sep-11

Page 18 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

§ All three Sectors registered stable performance § Our focus continues to be on

• Profitable growth
• Operational efficiencies
• Project and Risk Management

§ Steady growth in short cycle / product business § Strong backlog out of Project business

Siemens demonstrates sustainable growth

Page 19 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Operational Highlights & Sector Performances Financial Analysis Future Outlook

Page 20 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

To Sum Up

§ Sustainable, stable operational and financial performance in FY 2010-11 § Parent company Siemens AG considers India central to global growth; increases stake in Siemens Ltd. § Domestic economy facing high inflation, interest rates and input costs, leading to margins being, under pressure

Going ahead: Committed to sustainable growth

Page 21 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Industrial Automation Customer Services Drive Technologies

Industry Healthcare Energy

Fossil Oil & Gas Power Transmission Wind Clinical Products Diagnostics Imaging & Therapy

New organization of Siemens since October 1, 2011 – Four Sectors cover the global trends

Infrastructure & Cities

Mobility and Logistics Low & Medium Voltage Rail Systems Smart Grid Building Technologies Metals Technology Solar

Page 22 Analyst Meet 2011 – Presentation by MD and CFO, Siemens Ltd. – Nov. 28, 2011

Thank You !