innovating the mobile world - siemens · innovating the mobile world – ... information and...

Innovating the Mobile World –It‘s all about executionSiemens Information and Communication Mobile

Financial Market Days, May 13th, 2003

Information and Communication Mobile 2May 2003

WirelessModules

CordlessProducts

MobilePhones

Solutions

ICM - business areas

Siemens mobile

End-to-end (E2E)

Networks


ICM - growing above the market

Mobile Infrastructure CY2002 Mobile Handsets CY2002

1 1

2 2

3 3Siemens 12%

4 Siemens 8.2%

No. 3 position with 12%market share

Market growth (yoy) -24%

Our growth (yoy) -10%

No. 4 position with 8.2%market share

Market growth (yoy) +6%

Our growth (yoy) +16%

Value Units


ICM - performing in a difficult market

0

4

8

12

1999 2000 2002 1H2003

11.299 11.045

0%

1%

3%

5%

7%

Sales in billions of euros

Groupprofitmargin

6.5%*)8.1%

8.910

(2.7%)

2001

9%

11%

5.185

2.2%

Restructuring FitnessProgram

0.9%

*) comparable

5.138*)


ICM - key financial data 2Q03 and 1H03

Net cashGroup profit

margin

2Q03

Group profit

2,329

Sales

55 2.4% 279

(15%) 25%

5,185 114 2.2% 1671H03

Change yoy

(11%) 41%Change yoy

in millions of euros


ICM - vendor financing

Commitments under negotiation

Approved commitments not utilized

Approved commitments utilized

UMTS

GSM/GPRS

0

0.5

1.0

1.5

2.0

31.03.2002

0.3

1.6

22%

in billions of euros

0.6

01.1

31.03.2003

42%0.5

31.12.2002

0

1.3

48%

78% 52%

58%

0.6

0.7 0.6

0.7


AA-

A

BBB

BB

B+

B

B-

Siemens - reliable partner

Siemens

Competitor F

Competitor E

Competitor D

Competitor C

Competitor B

Competitor AIn

vest

men

t G

rad

eSp

ecu

lati

veG

rad

e

Mai00

Jun00

Jul00

Aug00

Sep00

Okt00

Nov00

Dez00

Jan01

Feb01

Mrz01

Apr01

Mai01

Jun01

Jul01

Aug01

Sep01

Okt01

Nov01

Dez01

Jan02

Feb02

Mrz02

Apr02

Mai02

Jun02

Jul02

Aug02

Sep02

Okt02

Nov02

Dec02

Jan03

Feb03

Mrz03

May00

Jul00

Sep00

Nov00

Jan01

Mar01

May01

Jul01

Sep01

Nov01

Jan02

Mar02

May02

Jul02

Sep02

Nov02

Jan03

AAA

AA+

AA

AA-

A+

A

BBB+

BBB

BBB-

BB+

BB

BB-

B+

B

B-

CCC

CC

SD/DMar03

Source: S&P Long Term Credit Rating


ICM - pursuing Mission 2004

2001

Generate positivegroup profit + net cash55

Improve employeesatisfaction44

Become the end-to-end solution provider33

Demonstrate leadership22

Increase market share11

0.9%

2002

8-11%Groupprofit

2.2%

(2.7%)

1H2003

Mission2004 2004

Business target agreementsper employee


ICM - it‘s all about execution

Networks WirelessModules

CordlessProducts

Solutions Mobile Phones

Mission 2004 Powered by top+

Commercial Projects

IT Roadmap

Overhead cost reduction

KnowledgeInitiative

Governance & Entrepren.

Enforcement

High Impact Projects (HIP)

Customer + Supply Chain Management

Balanced Scorecard for ICMProjectCa

sh+

Regional Initiatives

Economic Excellence Award

US Business Initiative

China Business Initiative

Other Initiatives

Top+ QStrategic Initiative:

End-to-end Solutions

ProgramWM Top+

S Top+Traction C3 Program


ICM Networks

Becoming the architectof tomorrows’ networks! 2 3

1

Position: No. 3 worldwideOver 180 customers in more than 90 countries20 UMTS contracts

Objectives: No. 2 player in mobile infrastructureExpand global footprint in the Americas, China and Eastern EuropeLeading provider of end-to-end solutionsAggressive product cost roadmap

Differentiator: Leading technology supplier for UMTS, EDGE, paymentGlobal reach, proven reliability


ICM Networks - flashback FMD 2002

Aiming for the no. 2 position

Grow abovethe market

Improveprofitability

Leverage Siemensglobal reach

Customer value & product portfolio

Operationalexcellence

Adjustment of costs


ICM Networks -market, sales and market share

Sources: Company reports, Siemens estimates

40.0

50.0

60.05957

46

2.0

3.0

4.0

5.0

6.05.2

5.8

4.2

3.0

1.0

45

6.5%MarketShare7.4% 9.8% 12%

Market

Sales


CY1999 CY2000 CY2001 CY2002


UKThree

ICM Networks - the UMTS opportunitiesfor growing our market share

ItalyTre

GermanyT-Mobile

GermanyVodafoneD2

FranceCegetel

2G

3G

2G

3G

2G

3G

2G

3G

2G

3G

50%

0%

60%0%

70%

0%

50%

25%

0%

Siemens 2G/3G radio share

50%

AustriaDrei

2G

3G 100%

0%


ICM Networks - a 3G outlook

W-CDMA

10-15% of the industry in 2003

Mass market expected for 2004

EDGE

Continuous roll-out

Successful implementation in the US (Cingular)

TD-SCDMA

Spectrum allocated in China

Network trials in 3 cities running


Accumulated subscriber base

792 million

ICM Networks - GSM is leading

YE2002 YE2002

Accumulatedsubscriber base

146 million

165 millionnew subscribers

in 2002

CDMA

GSM454 GSM operatorsworldwide

GSM in 182 countries

GSM fastest growingtechnology in the Americas

Source: EMC April 2003, CDMA Association


ICM Networks - regional aspects

~ 10% ICM N market share across all standards in Latin America

~ 20%ICM N marketshare in China

Our UMTS technology coversall major European countries

8 new orders in 1Q03 in Africa


ICM Mobile Phones

Setting trends in the mobile industry!2 3

1

Position: No. 2 in EuropeNo. 4 worldwide

Objectives: Continue successful entry in the AmericasCounter-attack in Asia-PacificInnovate with meaningful technology & designEmotionalize the brand furtherBuild the fashion phone category (XelibriTM)

Differentiator: Design leadership, product quality, strong operator relationships


ICM Mobile Phones - flashback FMD 2002

Focus on three key challenges

Grow abovethe market

ImproveASP

Secureproductivity

Rapid renewal of product range

Strengthen brand to support aspirations

Expand global presence

Reduce time-to marketthrough technology platform standardization

Productivity - program

Improve cost position of products and channels

Increase share of high-margin products/ applications


ICM Mobile Phones -market, sales and market share

2.0

3.0

4.0

5.0

350

Million units sell-through


Source: Gartner Dataquest

500

450

400

300

4.6%

CY1999 CY2000 CY2001

2.0

4.2 4.2 4.3

284

413 400423

Market

13

27 30 35Million unitssell-through

CY2002

Sales

MarketShare6.5% 7.4% 8.2%


Fashion & Lifestyle

Technology

ICM Mobile Phones - market evolution one size does not fit all any more

Design is a key element


ICM Mobile Phones - new products 2003


Xelibri -a fashion accessory that makes phone calls


ICM Mobile Phones - regional aspects

No. 1 position in Brazilwith > 60% market share

No. 1 position in Russiamarket share of ~ 30%

~ 8% marketshare in China

Full-line supplier forthe US market


ICM E2E - flashback FMD 2002

Facilitate the ICM E2E applications offering

Gain marketshare

Focus

Best in class portfoliowith leading partners

A&C package integration, development, maintenance, and hosting

First Mover regions Europe/Asia

Seven solution segments


ICM - making significant progressin E2E

Announcement

July 2002

Five cross-divisionalbusiness focus teams

Market launch: five ready-to-sell reference solutionsat Cannes 3GSM Congress

Prepare the market withcommercial lead projects

October 2002 February 2003 April 2003

MessagingEntertainmentPaymentLocation/PresenceMultimedia Services over IP

First sales successes:AIS Thailand, Vodafone Portugal, OI Brazil


ICM - ready-to-sell live E2E in Cannes

Different target groups

Tailoreddevicesegment

Appli-cations

Enablingservices

Infra-structuresolutions

USP

ProfessionalServices

Inte

grat

ion

Arc

hit

ectu

ral C

onsu

ltin

g

Hos

tin

g

U10,PocketLoox

VIP Assistant,Mobile Office

Travel

StreamingContent

Management

PaymentOMIP

Location

UMTS, GPRS,WLAN

33Business &

MobilitySolutions

44Tracking & Navigation Solutions

SX 56

“Track & Trust”in-car/off

car navigation

GeotoolboxLocation, LES

OMIP

GPS, GPRS

TC45 Java

VendingMachineControl &Command

Payment

GPRS

55

Machine-to-MachineSolutions

22Community & Messaging

Solutions

A55, C55, S55, SX 56

GSM/GPRS, WLAN

Push-to-

Talk,Chat,

IM

Pre-sence

IMS

SMSOMIPLocation (incl.Pre-sence)Pay-mentMSPMMSC

Fan Portal, MMS-

Album, Voice-MMS,

Photo Map

DownloadServer,

Gaming,MSP,

PaymentPremium

SMS

C55, S55

Java Download

Gaming Ring Tones

GSM/GPRS

Kids & Fun Solutions

11

Flexible Charging

of Bearers, Contents

and Services

Voice over GPRS

Seamless Access WLAN-UMTS

Inter-national Tracking

M2M Service

ChargingE2E Know-How

JavaWirelessModule

WirelessModule

Charge@once

MultipleDevice

Application

WirelessModule

ApplicationLocation

MultipleDevice

VIP Assistant

VideoTelephony

UMTS

Charge@onceWLANGPRS

IMSGPRS

Push-to-TalkIMS

Java SIP ClientIMS

DownloadServerMSP

Charge@once


ICM - become the leadingE2E solution provider

74% of our customers stated that end-to-end solutions are important part of a suppliers’ portfolio offeringSource: 56 MNO interviews

“the only one who has it live”

“real user driven solutions”

“most convincing performance”

“business now instead of over-hyped technology promotion”

11

2233

44

55


ICM - E2E sales example

Customer: AIS Thailand

Project: TV on mobile - Real-time video streaming over GPRS

Split of responsibilities:AIS: GPRS network operatorShinee.com: User interface creation, content managementITV: Content and service providerSiemens: End-to-end solution provider (video streamingsolution, GPRS network, handset clients), system integrator, matchmaker between the parties involved

ICM USP: chosen as supplier of a full-scale E2E videostreaming solution, service enhancements planned


Home Management

Fixed line messaging

ICM E2E - fixed & mobile convergence

GlobalCommunication

Network

Gigaset


ICM E2E - WLAN and UMTS integration

HighMedium

Highlymobile

Nomadicuse

Degree ofmobility

UMTS

WLAN

Bandwidth

Handover

Roaming

Security

Billing


ICM - our commitment for Operation 2003

2001

Generate positivegroup profit + net cash55

Improve employeesatisfaction44

Become the end-to-end solution provider33

Demonstrateleadership22

Increase market share11

0.9%

2002

(2.7%)

1H2003

Mission2004

It‘s

all a

bout

exec

utio

n

2.2%

Business target agreementsper employee


Webpage: http://www.siemens.com Investor Relations e-mail: [email protected]: +49-89-636-32830

Marcus Desimoni +49-89-636-32445

Eckhard von Münchow +49-89-636-33173

Christina Schmöe +49-89-636-32677

Andreas Schwab +49-89-636-36165

Claudia Wagner +49-89-636-33693

Disclaimer:

This presentation contains forward-looking statements based on beliefs of Siemens' management. Such statements reflect the company's current views with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results to be materially different, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services and changes in business strategy.Actual results may vary materially from those projected here. Siemens does not intend or assume any obligation to update these forward-looking statements.

Siemens Investor Relations Team

Group profit definition:

Group profit is defined as earnings before financing interest, certain pensions costs, income taxes and certain one-time items, which do not relate to the business performance of the Groups. See "Financial Reports/Fiscal 2003, Quarter 2/Financial Statements" at our Investor Relations website under www.siemens.com

innovating the mobile world - siemens · innovating the mobile world – ... information and...

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