the company © siemens ag 2016. all rights reserved. august ... · from 7.3 billion 2 people today...

© Siemens AG 2016. All rights reserved.August 2016

siemens.com

Disclaimer

This document contains statements related to our future business and financial performance and future events or to developments involving Siemens that mayconstitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,”“seek,” “estimate,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material deliveredto shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based onthe current expectations and certain assumptions of Siemens’ management, of which many are beyond Siemens’ control. These are subject to a number of risks,uncertainties and factors, including, but not limited to, those described in disclosures, in particular in the chapter Risks in Siemens’ Annual Report. Should one ormore of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance orachievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement.Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from thoseanticipated.

This document includes supplemental financial measures – not clearly defined in IFRS – that are or may be non-GAAP financial measures. These supplementalfinancial measures should not be viewed in isolation or as alternatives to measures of Siemens’ net assets and financial positions or to the results of operations aspresented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures maycalculate them differently.

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided, and percentages may not precisely reflectthe absolute figures.


siemens.com

Third quarter of fiscal 2016 –Key figures

Results of operations (Q3 2016)

2 Return on equity (RoE)

1 Continuing and discontinued operations

Q3 2016 Q3 2015

LiquidityFree cash flow1 1,822 684

Industrial Business

(in millions of €)

Powerand Gas

WindPower andRenewables

EnergyManagement

BuildingTechnologies

Mobility DigitalFactory

ProcessIndustriesand Drives

Healthineers FinancialServices(SFS)

Orders 4,512 2,729 3,102 1,658 1,112 2,563 2,117 3,382 238Revenue 4,321 1,722 2,894 1,536 1,795 2,519 2,247 3,230 238Profit 480 143 240 140 158 395 101 534 139Profit margin 11.1% 8.3% 8.3% 9.1% 8.8% 15.7% 4.5% 16.5% 17.4%2

Employees (in thousands ) Sep. 30, 2015Total (continuing operations) 348

Germany 114Outside Germany 234

(Continuing operations; in millions of €except where otherwise stated) Q3 2016 Q3 2015 Change in %

VolumeOrders 21,060 19,858 6%Revenue 19,804 18,844 5%

Profitability and capital efficiencyNet income 1,372 1,376 0%Return on capital employed (ROCE)1 13.7% 14.9%

Key figures Siemens (Q3 2016 | Q3 2015)


siemens.com

Fiscal 2015 –Key figures

Key figures Siemens FY 2015

1 Continuing and discontinued operations 2 Commonwealth of Independent States

Revenue by industrial businessPower and Gas 17%Healthineers 17%

Process Industriesand Drives 13%

Digital Factory 13%

Mobility 10%

Not included: Financial Services (SFS)

Wind Power andRenewables 7%

EnergyManagement 16%

BuildingTechnologies 8%

Revenue by RegionAsia, Australia 20%

Americas 29%

Europe, CIS2, Africa,Middle East

(without Germany) 36%

Germany 15%

(Continuing operations; in millions of €except where otherwise stated) FY 2015 FY 2014 Change in %

VolumeOrders 82,340 77,657 6%Revenue 75,636 71,227 6%

Profitability and capital efficiencyNet income1 7,380 5,507 34%Return on capital employed (ROCE)1 19.6% 17.2%

LiquidityFree cash flow1 4,674 5,201

Employees (in thousands) Sep. 30, 2015 Sep. 30, 2014

Total (continuing operations) 348 338Germany 114 114Outside Germany 234 224


siemens.com

Global presence –Close to customers all over the world

Revenue by customer location Employees as of September 30, 2015

Americas€21.7 billion73,500

29%

21%

Shareof totalworldwide

Germany

€11.2 billion114,000

15%

33%


Europe (excluding Germany), CIS,Africa, Middle East

€27.6 billion98,800

36%

28%


€15.1 billion61,500

20%

18%


Asia, Australia

All figures refer to continuing operations. CIS: Commonwealth of Independent States


siemens.com

Celebrating the bicentennial birthday of Werner von Siemens

Werner von Siemens:At a glance1816 – 1892Werner von Siemens was a responsible entrepreneur and far-sightedinventor whose name soon became a household word around theworld. Far ahead of his time, he recognized and fostered the linkbetween science and technology.

“In my youth, I dreamed of founding anenterprise of world standing comparable to thatof the Fugger dynasty …”

Werner von Siemens, 1887


siemens.com

Milestones of a 170-year history

1866The dynamo makeselectricity part ofeveryday life

1816 – 1892Company founder,visionary and inventor

1847Pointer telegraphlays the foundationof Siemens as aglobal company

1925Siemens electrifiesthe Irish Free Statewith a hydroelectricpower plant.

1975Breakthrough ofhigh-voltage direct-current (HVDC)transmission

2010TIA Portal takesautomation a stagefurther

2015Sinalytics putsdigital services forindustry on a newfooting

2012Test operation of theworld’s largest rotor foroffshore wind turbines

1983First magnetic resonanceimaging scanner goesinto operation

1959SIMATIC makesSiemens a leader inautomation technology

Werner von Siemens Siemens innovations over the past 170 years


siemens.com

Our new claim


siemens.com

What our new claim stands for

"Ingenuity" stands for innovation, engineering and genius. For us, it alsoincludes unity: We are united in our efforts, and we are committed to partneringwith our customers."For life" relates to our role in society: to make real what matters."Ingenuity for life" is therefore our unrelenting drive and promise to create valuefor customers, employees and society.


siemens.com

Megatrends –Challenges that are transforming our world

DigitalizationBy 2020, the digital universe willreach 44 zettabytes – a tenfoldincrease from 2013.1

UrbanizationBy 2050, 70 percent of the world'spopulation will live in cities(today it’s 54 percent).3

Demographic changeThe earth’s population will increasefrom 7.3 billion2 people today to9.7 billion2 in 2050. Average lifeexpectancy will then be 83 years.2

GlobalizationThe volume of world trade nearlydoubled between 2005 and 2014.5

Climate changeAccording to scientists, in thesummer of 2016, the Earth'satmosphere had the highest CO2concentration in 800,000 years.4

Sources:

1. IDC, The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things,April 2014

2. United Nations, Department of Economic and Social Affairs, Population Division (2015).World Population Prospects: The 2015 Revision, Key Findings and Advance Tables.Working Paper No. ESA/P/WP.241

3. United Nations, World Urbanization Prospects. The 2014 Revision, New York, published 2015

4. SCRIPPS INSTITUTE OF OCEANOGRAPHY, “The Keeling Curve”, July 30th, 2016

5. UNCTAD Statistics, Values and shares of merchandise exports and imports from 1948 to 2014,November 10, 2015


siemens.com

Digitalization at Siemens –Productivity lever for our customers

Connectivity andWeb of Systems

Cooperationand mobile IT

Smart data andanalytics

Cloudtechnologies

Cyber security

Maintenance andservices

Automation andoperationDesign and engineering

Improved productivity,shorter time-to-market

Greater flexibilityand stability

Higher availabilityand efficiency

Linking the virtual and real worlds along the entire value chain of customers

Revenue, FY 2015

Profitability

Market growth

€3.1 billion++

+9%

€0.6 billion+++

+15%

Vertical software Digital services


siemens.com

Vision 2020 –A consistent company concept

E-A-D – a complete system

With our positioning along the electrificationvalue chain, we have know-how that extendsfrom power generation to power transmission,from power distribution and smart grids to theefficient application of electrical energy.

With our outstanding strengths inautomation, we’re well equipped for thefuture and the age of digitalization.


siemens.com

Global trends

Vision 2020 –Electrification, automation and digitalization

Market development (illustrative)

Digital transformationA world connected by complexand heterogeneous systems

GlobalizationGlobal competition impactsproductivity and productionlocations

UrbanizationCities intensify investment ininfrastructure

Demographic changeNeeds increase as populationsgrow and age

Climate changeGreater resource efficiencyin an electrified world

Efficient use of energyPower transmission,power distributionand smart grids

Powergeneration

Efficienthealthcaredelivery

2014 Medium-term – 2020

Electrification ~2–3%Market growth

Automation

Digitalization ~4–6%Market growth

~7–9%Market growth


siemens.com

Vision 2020 –Seven goals

Be an employer of choiceExpand global management

Goal:

of Division andBusiness Unitmanagementoutside Germany

Create value sustainably

Goal:Tap growth fields andget underperformingbusinesses back on track

Be a partner ofchoice for customers

Foster ownership cultureImplement stringentcorporate governance

Goal:Cut costs by

~1billion €by 2016

Execute financialtarget system

Goal:Growth

Goal:ROCE of

20% >15% most relevant

competitors 1

> 30%Goal:

approval rating in thecategories “Leadership” and“Diversity” in the SiemensGlobal Engagement Survey

> 75%

Goal:

improvementin Net PromoterScore

≥ 20%Goal:

increase in thenumber of employeeshareholders

≥ 50%to


siemens.com

Vision 2020 –Selected growth fields

Flexible and small gas turbines Digital-twin software

Key sectors in process industriesImage-guided therapy and

molecular diagnostics

Offshore wind power

Distribution grid automationand software

Urban andinterurban mobility

Business analytics and data-drivenservices, software, and IT solutions


siemens.com

Ownershipculture

Leadership• Be bold, decisive & courageous• Siemens matters• Motivate & engage

Values– our foundation:• Responsible• Excellent• Innovative

People orientation• Empowerment & trust• Honesty, openness &

collaboration

EquitySupports a sense oflong-term-, output- andprofit-orientation.

Behaviors• Respect• Focus• Initiative & execution

Vision 2020 –Five elements create Ownership Culture


siemens.com

Vision 2020 –Milestones for the implementation of our company concept

2015 2016 2017 2018 2019 2020

Value

Foster ownership culture and leadership based on common values

Drive performance

Strengthen core

Scale up

Accelerated growth andoutperformance

Strategicdirection OptimizationOperational

consolidation


siemens.com

Vision 2020 –Innovation is our lifeblood

University partnerships –our edge in knowledge

Investment in research and development –the basis for growth and competitiveness

Inventions and patents –securing the future

7,650Inventions1

3,700Patent first filings1

9Center of KnowledgeInterchange (CKI)universities

16Principal partneruniversities

R&D expenditures1

€4.5 billionR&D employees1

32,100Software engineers1

17,500

1 In FY 2015

€€


siemens.com

The next generation of innovation –next47

Selected innovation fields

Distributedelectrification

Autonomousmachines

Connected(e-)mobility

eAircraft

Artificialintelligence

Block-chainapplications

Approx. €1 billionin funds over5 years


siemens.com

Vision 2020 –Being an employer of choice

Siemens invests over€250 million each yearin the training andeducation of employees.

153,000 Siemensemployees own companyshares and are thus co-owners of the company.

In FY 2015, around 7,000 young Siemensemployees were enrolled in work-studyprograms that combine academic learningwith practical experience.

Siemens’ “Europeans@Siemens”program enables more than 100young people from EU countries aswell as Turkey and Egypt toparticipate in work-study programsin Germany in the fields ofelectronics and mechatronics.


siemens.com

Corporate social responsibility –Embracing our responsibility to society

We train employees locally.In India, for example, we plan to train108 apprentices a year. In Egypt, weare building a training center foremployees and customers. In SouthAfrica, we built and equipped theMandela School of Science &Technology.

Supporting refugees is part ofour responsibility to society. Forexample, we offer professionalorientation through internships,provide accommodations, makedonations and hold preparatoryclasses for young refugees.

Our social commitment takesmany forms, includingdonations, foundations,disaster relief, employeevolunteering activities,sponsorships, educationalprograms, etc.

Since 2008, we have reserved 10 percent ofour apprenticeships in Germany fordisadvantaged young people. About 90percent of these trainees complete theircourses successfully. Vocational training andintegration are key enablers for overcomingsocial exclusion.


siemens.com

Sustainability –Siemens aims to be net-carbon neutral by 2030

We are investing over €100 million in measures to reduceour carbon footprint

Drive energy efficiency programIncrease energy efficiency in factories, employ sustainable technologiesin new buildings

Leverage distributed energy systemsReduce energy costs and CO2 emissions

Reduce fleet emissionsUtilize potential of low-emission cars in fleet,including electro mobility

Purchase green energyMove toward a significantly cleaner power mix with a strongfocus on renewable energy and highly efficient gas

Independent auditors will monitor and reporton progress of implementation.

Electricity

Heating / Process heat

Fleet

Other

-50% -100%

2020 20302014

2.2 MtCO2


siemens.com

Vision 2020 –The leadership team

Joe KaeserPresident and ChiefExecutive Officer (CEO)

Lisa DavisRoland Busch Janina KugelLabor Director,Chief Diversity Officer

Klaus Helmrich Siegfried RusswurmChief TechnologyOfficer (CTO)

Ralf P. ThomasChief FinancialOfficer (CFO)

CorporateDevelopmentGovernance and MarketsCommunicationsLegal and Compliance

AmericasPower and GasWind Power and RenewablesPower GenerationServices

AsiaAustraliaEnergy ManagementBuilding TechnologiesMobility Human Resources

AfricaEuropeDigital FactoryProcess Industriesand Drives

Corporate TechnologyCIS1

Middle EastHealthineers

Controlling and FinanceGlobal ServicesFinancial Services

1 Commonwealth of Independent States

Willi MeixnerCEO

Power and Gas

Markus TackeCEO

Wind Power andRenewables

Randy ZwirnCEO

Power GenerationServices

Ralf ChristianCEO

EnergyManagement

MatthiasRebelliusCEO

BuildingTechnologies

Jochen EickholtCEO

Mobility

Jan MrosikCEO

Digital Factory

Jürgen BrandesCEO

ProcessIndustries andDrives

Bernd MontagCEO

Healthineers

RolandChalons-BrowneCEO

FinancialServices


siemens.com

Power and Gas –Powerhouse in power generation

The Power and Gas Division offers utilities, independent power producers,engineering, procurement and construction companies (EPCs), and oil andgas customers a broad spectrum of products and solutions for theenvironmentally compatible and resource-saving generation of power fromfossil fuels and renewable sources of energy and for the reliable transportationof oil and gas.

siemens.com/ar/power-gas

FY 2015 FY 2014Orders in millions of € 15,666 13,996

Revenue in millions of € 13,193 12,720

Employees (as of September 30, 2015) in thousands 50 42


siemens.com

Wind Power and Renewables –World market leader in offshore wind power

The Wind Power and Renewables Division is a leading supplier of reliable,environmentally friendly, and cost-efficient renewable energy solutions. Drivingdown the cost of wind power is the key target as Siemens strives to makerenewable energy fully competitive with conventional energy sources.

Since they are especially reliable and cost-efficient, the wind turbines offeredby Siemens Wind Power and Renewables are a worthwhile investment bothfrom a financial and an environmental perspective. With over 31,000megawatts of wind power installed, the Division delivers clean, renewableenergy from onshore and offshore installations all over the world.

siemens.com/ar/wind-renewables





siemens.com




Energy Management –Partner for efficient power infrastructure

The Energy Management Division is one of the leading global suppliers ofproducts, systems, solutions and services for the economical, reliable andintelligent transmission and distribution of electrical power. As the trustedpartner for the construction and expansion of an efficient and reliable powerinfrastructure, the Energy Management Division provides utility companiesand industrial customers with a portfolio that meets their needs.

The portfolio ranges from systems for the low-voltage and distribution powergrid level to smart grids and energy automation solutions to power supplies forindustrial plants and high-voltage transmission systems.

siemens.com/ar/energy-management


siemens.com

Building Technologies –World leader for building technologies

The Building Technologies Division is a leading global provider of safe,energy-efficient and environmentally friendly building and infrastructuretechnologies.

As a technology partner, consultant, service provider, system integrator andsupplier, the Division offers solutions for fire safety, security, buildingautomation, heating, ventilation and air conditioning (HVAC) as well as energymanagement.

siemens.com/ar/building-technologies





siemens.com

Mobility –Transportation solutions for the future

The efficient and integrated transportation of people and goods by rail androad – the Mobility Division bundles all of Siemens’ transportation-relatedproducts, solutions and services.

The Division’s five business units – Mobility Management, Turnkey Projects &Electrification, Mainline Transport, Urban Transport and Customer Services –provide modern, interconnected and IT-based mobility. They have the know-how to make road traffic flow more smoothly and quickly, to make trains moreenvironmentally friendly and efficient and to make train schedules and freightshipments more reliable.

siemens.com/ar/mobility





siemens.com

Digital Factory –Partner of the manufacturing industry worldwide

The Digital Factory (DF) Division offers a comprehensive portfolio ofseamlessly integrated hardware, software and technology-based services tosupport manufacturing companies worldwide in enhancing the flexibility andefficiency of their production processes and in reducing the time to market oftheir products.

The Division‘s objective is to provide a hardware and software portfolio thatseamlessly links product development, production and suppliers so thatultimately a complete digital representation of the entire physical value chain isachieved. The platform for this is called “Digital Enterprise.“

siemens.com/ar/digital-factory





siemens.com

Process Industries and Drives –Increased productivity, shorter time to market

With innovative, integrated technologies for the entire lifecycle, theProcess Industries and Drives (PD) Division helps customers measurablyincrease productivity, shorten time to market, and improve the reliability,safety, and efficiency of products, processes and plants.

All over the world, customers benefit from future-proof automation, drivetechnology, industrial software, and services based on best-in-classtechnology platforms – such as Totally Integrated Automation (TIA) andIntegrated Drive Systems (IDS).

siemens.com/ar/process-industries





siemens.com

Financial Services –Financial solutions for business customers

The Financial Services Division (SFS) provides business-to-business financialsolutions. Around the globe, we support customer investments with projectand structured financing as well as leasing and equipment finance.

The success of Financial Services is built on a unique combination of riskcompetence, technological expertise and reliable financial resources. Throughour international network of SFS companies, we provide – subject to the legalrequirements in the respective country – a great variety of financial solutions.

siemens.com/ar/sfs


Allocated equity(as of September 30, 2015)

in millions of € 2,417 2,148



siemens.com

Healthcare –Next-generation medical technology

Siemens Healthineers is one of the world's largest suppliers of technology forthe healthcare industry and a leader in medical imaging, laboratorydiagnostics and advanced image-guided therapy applications. The company isalso active in the field of digital and enterprise services as well as moleculardiagnostics.

Siemens Healthineers aims to blaze new trails for healthcare providersworldwide – as their partner in the quest to improve medical outcomes and cutcosts.

siemens.com/ar/healthcare





siemens.com

A strong partner all over the world –Germany

- The Airbus Group and Siemens have reached a long-term collaborationagreement in the area of hybrid-electric propulsion systems. A team ofabout 200 employees has been set up to develop electric aviationtechnologies. Siemens will be bundling the team’s activities in its newnext47 unit.

- Siemens has received an order from E.ON to supply, install, andcommission 60 direct-drive offshore wind turbines with a capacity ofabout six megawatts each. The Arkona wind farm in the Baltic Sea,which will supply electricity for up to 400,000 households in Germany,is scheduled to go into operation in 2019.

- In April 2016, Siemens’ gas turbine facility in Berlin delivered its 1,000th gasturbine. More than 90 percent of the turbines have been exported. The totalcapacity of the turbines produced at the plant amounts to some 220gigawatts – enough power to supply about one billion people with electricity.

FY 2015 FY 2014Revenue (from customers in Germany) in millions of € 11,244 10,781

Employees(As of September 30, 2015; continuing operations) in thousands 114 114


siemens.com

FY 2015 FY 2014Revenue (from customers in Europe, CIS,Africa, Middle East) in millions of € 38,799 38,449

Employees(As of September 30, 2015; continuing operations) in thousands 213 211

A strong partner all over the world –Europe, CIS, Africa, Middle East

- United Kingdom:For the East Anglia ONE project, Siemens will supply, install, andcommission 102 seven-megawatt offshore wind turbines. With a totalinstalled capacity of 714 megawatts, this is Siemens’ largest project of itskind to date. The wind farm, which is scheduled to go online in 2020, willsupply power for about 500,000 households in the UK.

- Israel:Siemens has received a contract for the turnkey installation of two industrialcombined cycle power plants, each with a capacity of 70 megawatts – thefirst order of its kind from Israel.

- Egypt:Siemens is modernizing Cairo’s rail network. Interlockings along some 260kilometers of track will be replaced by modern, centrally controlledelectronic systems. Commissioning is planned for 2020.


siemens.com

A strong partner all over the world –The Americas

FY 2015 FY 2014Revenue (from customers in the Americas) in millions of € 21,702 18,494

Employees(As of September 30, 2015; continuing operations) in thousands 73.5 70

‒ U.S.:Siemens is building a combined cycle power plant in Lordstown, Ohio, on aturnkey basis. When completed in 2018, the plant will have a total capacityof 940 megawatts and supply electricity to more than 800,000 households.The order is worth more than $800 million and includes a long-term servicecontract.

‒ Con Edison (the power utility for the greater New York City area) is usingsix mobile resilience transformers from Siemens, the first in the world.Developed in a collaborative project, these transformers cut the timerequired to replace transformers – due to weather damage or otherunforeseen events, for instance – from months to days.

‒ Bolivia:Siemens has signed binding agreements to expand three thermal powerplants belonging to the state utility Ende Andina SAM (planned increase:one gigawatt).


siemens.com

A strong partner all over the world –Asia, Australia

‒ Indonesia:During Indonesian President Joko Widodo’s visit to Germany in April 2016,Siemens signed two memoranda of understanding with the state energycompany PLN that call for jointly installing 500 megawatts of distributedpower generation capacity and expanding Indonesia’s power grid.

‒ Thailand:Bangkok’s Mass Transit System Public Company has commissioned aconsortium comprising Siemens and Bozankaya (Turkey) to supply 22four-unit metro trains. Siemens will also be responsible for the serviceand maintenance of the trains for 16 years.

‒ Japan:Siemens is supplying 16 wind turbines with a total capacity of 50megawatts for the Setana Osato wind farm on the Japanese islandof Hokkaido.

FY 2015 FY 2014Revenue (from customers in Asia, Australia) in millions of € 15,135 14,283

Employees(as of September 30, 2015; continuing operations) in thousands 62 62


siemens.com

Contact

Siemens AGCC EI SPWittelsbacherplatz 280333 [email protected]

For further information:siemens.com/aboutsiemens.com/presssiemens.com/investorssiemens.com/innovationsiemens.com/careers

the company © siemens ag 2016. all rights reserved. august ... · from 7.3 billion 2 people today...

Documents