copyright siemens financial services gmbh, 2010 siemens financial services singing in the rain...
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Copyright Siemens Financial Services GmbH, 2010
Siemens Financial ServicesSiemens Financial Services Singing in the Rain Singing in the Rain
or…How to Win in or…How to Win in
Tough TimesTough Times
First the adverts…..
About Siemens and Siemens Financial Services (SFS)
Fossil power generation Renewable energy Oil & gas Energy service Power transmission Power distribution
Imaging & IT Workflow & solutions Diagnostics
Drive technologies Industry automation Building technologies Mobility Lighting (OSRAM) Industry solutions
Industry Energy Healthcare
Sectors
Cross-Sector business
Siemens IT Solutions and Services Siemens Financial Services
SFS is an integral part of Siemens
SFS divisions at a glance
Businesses Commercial Finance Equity Investments& Project Finance Insurance
Treasury & Investment
Management
Activities
Asset Finance & Leasing
Vendor Finance
Asset-Based Lending
Private Equity
Project and Equity Participations
Project and Export Finance
Industrial insurance solutions
Private Finance Solutions
Asset Management
Treasury Solutions (incl. Siemens Credit Warehouse)
Key figures
Total assets:EUR 10.7 bn
Total assets/equity investments:EUR 568 mn
Project volume to be financed:EUR 41.7 bn
Max. transferred risk to market:EUR 92.0 bn
Assets under management:EUR 17.5 bn
Total treasury assets under management:EUR 61.0 bn
Status: September 30, 2009
Business performance
25.9%31.4%31.6%
27.1%32.4%Return on Equity (ROE) pretax
Income before Income taxes (IBIT) in EUR mn
in EUR mn 2005* 2006* 2007* 2008* 2009*
Total assets 10,148 10,522 8,912 11,328 11,704
Employees 1,672 1,764 1,783 1,933 1,877
* Fiscal year: October 1 to September 30Income before Income taxes (IBIT) in EUR mn
2005 2006 2007 2008 2009
2005 2006 2007 2008 2009
319 307329
286304
How to Win in Tough Times
Status: Sept. 30, 2009
How does SFS achieve this?
Its not about leverage but about basic business truths:
The biggest truth is:
Either you are exploiting change, or.. change is exploiting you
12 Winning Tips
Status: Sept. 30, 2009
Tip 1: Communicate with your teams!
Status: Sept. 30, 2009
Communicate!Spread the Good….the Bad…….
Cheerleading is not enough
Trust your staff with information
you will be amazed at the ideas
they will generate if they
understand the issues
Tip 2: Increase Vision….Narrow Focus!
Status: Sept. 30, 2009
Broaden your vision……narrow your focus.
Tough times command that you stop living in the past
What resources do you have?
Use them wisely.
Stop wandering about in areas
you entered in the
good times but didn’t
really understand
(and still don’t).
Exit. Fast.
Develop a focussed passion.
Tip 3: Nurture Customers…and fire customers!
Status: Sept. 30, 2009
The customer is NOT always right…sometimes you do know better.
Love the right customers not the wrong ones
Who really provides you with the profit? Who is actually just an expense?
Remember Lifetime return concept
Help the ones you love through the meltdown…they will remember
Once your customer base is rationalised concentrate on winning good ones from your struggling / wrong footed competitors (as we do)
Tip 4: Increase freedoms…and clarify boundaries!
Status: Sept. 30, 2009
Don’t batten down the hatches
by trying to take over all the control.
People need to feel they are responsible too.
But don’t duplicate.
Tell people where the boundaries are.
Tell them their responsibilities.
Then step aside and let them get on with it!
Tip 5: Expand creativity….and kill ideas!
Status: Sept. 30, 2009
Everyone should have passion
and want to change things.
But how?
Forums,
‘Skunk Groups’,
‘Barrier Boards’,
Gatekeepers with passion
that can kill bad ideas
but encourage new ones.
Remember: NOTHING is
Achieved without CREATIVITY
Tip 6: Take more Risk…and eliminate Risk!
Status: Sept. 30, 2009
Less money means less chances to try…so we need to focus our risks.
Poor managers do across the board cuts…..
the best managers do radical cuts in some areas in order to increase spending in others
Tip 7: Treat people properly – it’s a people business!
Status: Sept. 30, 2009
What does that mean?
Do you know the name of the cleaner?
Do you listen to people or talk (at) them?
Do you do MBWA or MBEM?
Are you focussed on ‘soft’ issues or ‘hard’ numbers?
Do you want to see your people do better than you?
Are you tolerant of big (genuine) mistakes and intolerant of mediocre successes?
Are you prepared to give when it counts?
Tip 7: Treat people properly – it’s a people business!
Status: Sept. 30, 2009
Above all:
Do you give people the credit they deserve?
"The world is divided into people who do things, and people who get the credit. Try, if you can, to belong to the first class. There's far less competition." (Dwight Morrow, 1935.)
"I praise loudly. I blame softly." (Catherine the Great, 1729-1796.)
Tip 8: Treat the business as if it is your own
Status: Sept. 30, 2009(even if it isn’t)
Fact of life: employees act differently to owners
Therefore:
Corporate management acts differently from an entrepreneur
It’s all about incentives
Key issue: separation of ownership from management(where is the entrepreneurial spirit?)
Tip 9: Manage for the Long Term
Status: Sept. 30, 2009
Its about being proactive v reactive
SFS consistent strategy for years
“Success usually comes to
those who are too busy to be
looking for it”
Henry David Thoreau Henry David Thoreau
Tip 10: Plan for the worst…lead for the best
Status: Sept. 30, 2009
Disaster planning is more than IT systems
cash / credit lines
employee exodus
Environment
Economic
Legislation
Short term / Long term
Tip 10: Plan for the worst…lead for the best
Status: Sept. 30, 2009
Warren Buffett:
“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”
Tip 11: Crisis is a positive opportunity
Status: Sept. 30, 2009
(if you are prepared for it)
those who had cash during credit crunch (and were prepared to use it) are much much richer
(Warren Buffett net worth up $47 billion over last 12 months)* Forbes 03.10.10
Important message: ACT CONTERCYCLICAL
Buy in a crises:
Business, customers , property, hire great people in crisis
Crisis is the time to prepare for growth!
Tip 12: Start Early!
Status: Sept. 30, 2009
The most important tip of all:
winning in a crisis can’t be done in a crisis
– it starts in the good times not in the bad
June 2010
Crises are nothing new – not even the recent credit crunch
June 2010
Appeared in Life Magazine 1929
June 2010
Published 1931
June 2010
Market conditions are NOT new….our grandparents experienced credit crunch
before……
Invest in the lows….sell in the highs…..or…if you admire Warren Buffett….just do the
former!
June 2010
“The time to repair the roof is when the sun is shining”
John F Kennedy
June 2010
“There cannot be a crisis next week. My schedule is already full”
Henry Kissinger
June 2010Siemens Financial Services
Andy Swadlo
CEO Central & Eastern Europe
Siemens Financial Services
Tel: +44 (0)1753 434030
Mobile: +44 (0)7929 207717
Thank you for listening