Lisa Davis, Member of the Managing Board, Siemens AG
Capital Market Day - Energy and Oil & Gas | Houston, June 29, 2016
Unrestricted © Siemens AG 2016
siemens.com/investor
Notes and forward-looking statements
This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute 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 delivered to shareholders 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, 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 the Annual Report. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements 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 those anticipated.
This document includes - in IFRS not clearly defined - supplemental financial measures that are or may be non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens' net assets and financial positions or results of operations 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.
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.
Oil & Gas Power Generation Power Transmission & Distribution Consumption
#2 in Oil & Gas | #1 in Offshore Wind | #2 in Fossil Power | #1 in Power | #2 in Power | #1 in Automation |
Power | Generation | Transmission | Distribution | and Drives |
Market drivers
+90 million people every year
Growing population
More people living in cities
Increasing Urbanization
+2.5% electricity demand p.a.
Further electrification
Massive reduction in CO2
Climate change
Oil & Gas Power Generation Power Transmission & Distribution Consumption
Portfolio highlights
Refinery with largest IGCC1`
Innovation underpins success
Oil & Gas
Compression and drives
Power generation and distribution
Process, automation and
digital solutions
Power Generation
Gas turbines (4-400 MW)
Steam turbines
(45 kW-1,900 MW)
Onshore/Offshore Wind
turbines (2.3-7 MW)
Power Transmission
High voltage transmission systems (DC/AC)
Grid access solutions
Power transformer
Records in combined heat and power gen.
Integration
of renewables
Real-time grid control
Digital oil & gas solution
High voltage switchgear
Power Distribution
Low and medium voltage products
Grid protection, automation
and power quality
Distribution transformer
Automation & Drives
Electrical, automation and instrumentation packages
Integrated engineering to
remote operations
Industrial security
Jazan
Fortuna Düsseldorf BORWIN3 Spectrum Power Platform Ivar Aasen
Service
Oil & Gas Power Generation Power Transmission & Distribution Consumption
Portfolio highlights
Refinery with largest IGCC1`
Innovation underpins success
Oil & Gas
Compression and drives
Power generation and distribution
Process, automation and
digital solutions
Power Generation
Gas turbines (4-400 MW)
Steam turbines
(45 kW-1,900 MW)
Onshore/Offshore Wind
turbines (2.3-7 MW)
Power Transmission
High voltage transmission systems (DC/AC)
Grid access solutions
Power transformer
Sinalytics - Siemens' technology platform for digital services, processing 550 gigabytes per day from more than 300,000 devices
Records in combined heat and power gen.
Integration
of renewables
Real-time grid control
Digital oil & gas solution
High voltage switchgear
Power Distribution
Low and medium voltage products
Grid protection, automation
and power quality
Distribution transformer
Automation & Drives
Electrical, automation and instrumentation packages
Integrated engineering to
remote operations
Industrial security
Jazan
Fortuna Düsseldorf BORWIN3 Spectrum Power Platform Ivar Aasen
Service
Installed Units
Drivers for Future Growth
> 2,800 units
Large Gas Turbines Large Steam Turbines
- Grow serviceable installed base through strong integration with new unit sales
Small Steam Turbines Small/Medium Gas Turbines Aero-Derivative Gas Turbines
> 78,000 units
Increase number of service contracts in existing installed base
Compressors > 44,000 units
Wind Turbines > 17,000units
Leverage innovation to create
more service value
Drive new customer specific business models based on Sinalytics
Note: Installed units as of March 31, 2016.
Upstream Midstream Downstream
Customer applications
Exploration/Development/Production
Pipeline/Storage/LNG/FLNG
Refinery/Chemicals
Drill-Rig Drive
& Automation
Electrical Stimulation
Water Management
Gas Analytics
Subsea Power Grid
Thermal Recovery
E-House & Modules
Regasification
Pipeline Pumping
Onshore Power Generation
E-Houses & Modules
Tank Farm Compression
& Management
Air Separation
Large Mechanical Drives
Large Power Generation
Process Automation
Gas Analytics
Electrical Drive Solutions
Expanders
Water Management
Electrical Distribution
Siemens
Upstream Midstream Downstream
Customer applications
Exploration/Development/Production
Pipeline/Storage/LNG/FLNG
Refinery/Chemicals
Drill-Rig Drive
& Automation
Electrical Stimulation
Water Management
Gas Analytics
Subsea Power Grid
Thermal Recovery
E-House & Modules
Offshore Production (FPSO, FSU)
Regasification
Pipeline Pumping
Onshore Power Generation
E-Houses & Modules
Tank Farm Compression
& Management
Offshore Power Generation
Liquefaction Trains
Air Separation
Large Mechanical Drives
Large Power Generation
Process Automation
Gas Analytics
Electrical Drive Solutions
Expanders
Water Management
Electrical Distribution
Integration complete
Supply chain industrialization underway
Synergy delivery of €115m by FY 2019 (€65m greater than commitment)
Former
Rolls-Royce Energy
Acquisitions
Siemens Rolls-Royce
Upstream Midstream Downstream
Customer applications
Exploration/Development/Production
Pipeline/Storage/LNG/FLNG
Refinery/Chemicals
Drill-Rig Drive
& Automation
Electrical Stimulation
Water Management
Gas Analytics
Subsea Power Grid
Thermal Recovery
E-House & Modules
Offshore Production (FPSO, FSU)
Gas Injection
Subsea Processing
Gas Compression
Small Engines
Regasification
Pipeline Pumping
Onshore Power Generation
E-Houses & Modules
Tank Farm Compression
& Management
Offshore Power Generation
Liquefaction Trains
Small Pipeline Compression
Large Pipeline Compression
Micro LNG
Air Separation
Large Mechanical Drives
Large Power Generation
Process Automation
Gas Analytics
Electrical Drive Solutions
Expanders
Water Management
Electrical Distribution
Small Mechanical Drives
Process Compression
Small Engines
Integration complete
Supply chain industrialization underway
Synergy delivery of €115m by FY 2019 (€65m greater than commitment)
Integration on track with focus on cost-out
Synergy delivery of €250m by FY 2019 (€100m greater than original commitment)
More than €50m to be delivered in 2016
Former
Rolls-Royce Energy
Acquisitions
Siemens
Rolls-Royce
Dresser-Rand
A tough Oil & Gas market requires clear strategy and new solutions
Oil & Gas customer requirements
Increased
HSSE requirements
(Health, Safety, Security, Environment)
Increased productivity
Siemens
Oil & Gas Strategy
Lead digital O&G
to turn data into value
Leverage automation experience to drive productivity
Grow installed fleet via product,
system and solution offerings
Improved value for capital expenditure
Leverage entire Siemens Electrification,
Automation & Digitalization portfolio to serve Oil & Gas
Onshore E-House
Yamal LNG (Russia)
Offshore E-House Power Generation
Module
Compression
Module
29 E-Houses
Client: Yamgaz (Technip, Chiyoda, JGC JV)
HV (110KV) switchgear
MV/LV (33KV, 10KV, 400V) switchgear
MV/LV transformer
Power management system
Bus ducts, Fire and gas detection system
P-76 FPSO (Brazil)
Client: TT76 (Technip Techint JV)
E-House
MV/LV switchgears, bus ducts, motor control center
MV/LV transformers
HVAC
Fire and gas detection system
Battery and chargers, lighting
Power distribution control system
Champion 7 Platform (Brunei)
Client: Shell Brunei
Power Generation Module
2 x 12MW GTGs
Fuel Gas Conditioning Skids
E-House with MV/LV switchgears
Battery and charger, transformers
Emergency diesel generator for black start
Power management system
P-54 FPSO (Brazil)
Client: Petrobras
2 Compression Modules
3 motor driven compressors with 2 compressor casings
Variable frequency drives
Gas scrubbing system
Gas cooling system
Lube-oil system
GT auxiliary systems
Successful execution of 50+ onshore and offshore projects totaling over 80 modules
Turning Data Into Value
Project: Nord Stream Landing Station - Wingas pipeline transportation
Fully integrated 3D design and manufacturing based on Siemens PLM Software NX and Teamcenter
Virtual engineering and training in safe environment using COMOS Walkinside
Predictive maintenance - online monitoring of critical rotating parts via embedded infrared cameras
Remote monitoring - enables proactive customer support to increase operational availability
up to 99%
Availability
Trends
Growing investment in renewables Shift to decentralized energy systems Natural gas is the favored fossil fuel Unconventional Oil & Gas here to stay Emerging markets dominate Digitalization as a game changer Customer expectations increasing
Siemens' strengths
Leadership position in Wind
Complete decentralized portfolio
World records in gas fired technology
Innovative solutions combining E-A-D
New financial and funding models
Remote monitoring and diagnostics
Integrated teamwork to leverage strengths
A promising opportunity pipeline across the globe
Cumulative power generation market
Middle East China
Orders (in GW) in FY16-18 vs. FY13-15
North America
Europe
-8%
+29%
110 GW
85 GW
-27%
244 GW
621 GW
613 GW
+2%
75 GW
68 GW
179 GW
24%
35%
+20%
+13%
29%
40%
Wind
Gas
62 GW
FY13-15
63 GW
FY16-18
FY13-15 FY16-18
FY13-15
FY16-18
FY13-15 FY16-18
Latin America Africa
+15%
41%
-26%
31%
Steam
+33%
+116%
111 GW
127 GW
FY13-15
FY16-18
36 GW
48 GW
8 GW
18 GW
Asia/Pacific
excl. China
WORLD
FY13-15
FY16-18
FY13-15
FY16-18
FY13-15
FY16-18
Source: Siemens Internal. Does not include all energy sources. Selected regional growth areas
Project excellence is a must for delivering value in today's markets -
Lessons learned built into our largest, current project
Example: Egypt megaproject
Total deal Volume:
~ €8bn
14.4 GW from CCPP
2 GW in Wind
Localization of blade manufacturing
Training for 600 engineers/technicians
Long term service agreement
Egypt Megaproject Lead
T. Toupin
PG
Project structure
What we are doingSenior sponsorships
Tight approvals for extended scope
Strong local partners
Managing Board
In-country stakeholder management
Proactive supplier development
Stringent risk assessment
EM
Experienced and empowered PMs
Use of experts to ensure learning
Clear accountabilities
Financing
Training Communication
3 fossil
fuel power plants
WP
12 wind parks & 1 blade factory
PS
Service for 24 GT's &
~600 WT's
9 sub-
stations
Megaproject reporting line
Our Siemens team is delivering
Drive Competitiveness Deliver Profitable Growth
My priorities
Focus on customer-first by being closer to the market and ensuring one Siemens
Strong focus on technology leadership and cost -out
Deliver with excellence on all promises
Deliver integrated value fast
Realize our full potential of digitalization
Leverage the strength of the entire Siemens portfolio and
global capability in all verticals
PG
WP
EM
PD
11.8%
11.6%
7.1%
1.3%
H1 FY15
3.7%
6.5%
5.8%
4.9%
Profit margin
H1 FY15
H1 FY16
H1 FY16
H1 FY15
H1 FY16
H1 FY15
H1 FY16
11-15% 5-8% 7-10% 8-12%Target
margin
Siemens Energy and Oil & Gas Business -
Value chain strength focused on profitable growth
Key takeaways
End-to-End
Strength
Service
Oil & Gas
#1 / #2
>140,000
€365m
leading market
positions
total installed units
synergy delivery
from our acquisitions
Leadership across the entire energy value chain
Broad presence - enhanced ability to capture margin
Diversified and growing installed base
Increasing revenue and steady margin
Tough market, no surprise
Focus on driving integration value
Digitalization
>300,000
connected devices via Sinalytics
Digitalization is a game changer
We are turning data into value for our customers
Margin Delivery
%
driven by ongoing
cost out
Accelerated productivity
Relentless focus on competitiveness
Siemens AG published this content on 29 June 2016 and is solely responsible for the information contained herein.
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