Siemens share price
Stock market trend (XETRA closing prices, Frankfurt, in euros) indexed Low: 32.05 High*: 68.60 200 Siemens 180 DAX Dow Jones Stoxx 160
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80 Nov. Jan. March May July Sept. Nov. Jan. 2003 2004 *as of January 19, 2004 Key figures – Fiscal 2003 in billions of euros
Percentage 2003 2002 change
Net income 2.445 1.661* + 47
Group profit 4.295 3.756 + 14
New orders 75.056 86.214 -5**
Sales 74.233 84.016 -4**
Net cash provided by operating activities 5.712 5.564 + 3
* excl. €936 million from sales of Infineon shares ** Adjusted for currency effects and portfolio activities Employees (I)
2003* 2002* Change
Worldwide 417,000 426,000 - 9,000
Germany 170,000 175,000 - 5,000
Outside 247,000 251,000 - 4,000 Germany
* September 30 Employees (II)
2% reduction worldwide
Success in training and placement
5,000 new hires in Germany
12,000 in training programs Operation 2003 (I)
8 of 9 Groups Margin targets achieved targets Q4 03 FY 03 Target
PG Power Generation 11.3 16.8 10 – 13 Med Medical Solutions 14.0 15.1 11 – 13 A&D Automation & Drives 10.5 9.6 11 – 13 Osram 10.3 9.8 10 – 11 PTD Power Transmission and Distr. 7.4 6.1 5 – 7 TS Transportation Systems 5.5 6.0 5 – 7 SV Siemens VDO Automotive 5.8 5.0 5 – 6 SFS* Siemens Financial Services 20.5 24.9 18 – 22 SBT Siemens Building Technologies 2.7 2.0 7 – 9
*) Return on shareholders' equity before income taxes Operation 2003 (II)
Power Generation
Demag Delaval successfully integrated
Alstom industrial turbines round out product range
Offerings for oil & gas industry expanded Operation 2003 (III)
Siemens VDO Automotive
Exemplary integration of VDO
A leader in driver information systems, airbag controls and gasoline injectors
Among the top players in navigation and diesel injection systems
Rigorous cost and quality management
Margin targets fully achieved Operation 2003 (IV)
Information and Communications
IC Mobile and SBS back in the black since 2002
IC Networks back in the black in Q4 of 2003
Capacity adjustments and innovations
Record cell phone sales in Q1 of 2004 New cell phones (I)
S55 SX1 A52 U1 55 0 Fashion ST 5 1 EUR/APAC U
CL50 S57
SL55
HIGH-END Xelibri 1-4 Xelibri 5-8
CL55 ASIA ENTRY A55 MC60 M5 A60 5 2 C6
US C60 56 CT56 M46 S5 56 C 6 S SL56 A X56 M56 New cell phones (II)
SL 55 – The star Operation 2003 (V)
Siemens Dematic
Provisions for old burdens
Postal automation reorganized
Pick-and-place machines in the black
Integration in Siemens AG planned Operation 2003 (VI)
Industrial Solutions and Services
Capacity adjustments
Restructuring
Back in the black in 2004 after two years of losses Operation 2003 (VII)
Reduction of central costs
€1 billion cut in three years
Nearly half at Corporate headquarters
More than half at Group and Regional headquarters Operation 2003 – Summary
Group margin targets unchanged
8 Groups consolidating their success
6 Groups following suit Margin targets FY 03 Target ICN IC Networks* - 5.1 8 – 11 ICM IC Mobile 1.8 8 – 11 SBS Siemens Business Services 0.2 5 – 6 I&S Industrial Solutions and Services - 1.0 4 – 6 SD Siemens Dematic - 8.4 7 – 9 SBT Siemens Building Technologies 2.0 7 – 9
* + 2.9 in Q4 Siemens Management System
company programs Innovation Customer focus Global competitiveness Initiatives: Initiatives: Initiatives: Platform strategies Winning new customers Software initiative
Trendsetting technologies Cross-selling initiative Project management@Siemens
Worldwide manufacturing concept
Shared services
Asset management
Service initiative
Quality and process initiative
Existing activities will be consolidated "Go for profit and growth" (I)
Innovation program
Platform strategies Examples: Medical Solutions Automation & Drives IC Networks
Trendsetting technologies Examples: Medical Solutions Transportation Systems Siemens VDO Automotive IC Networks / IC Mobile "Go for profit and growth" (II)
Customer focus program
Target regions
Russia
Europe China USA Japan India
"One Siemens" – Cross-Group offerings "Go for profit and growth" (III)
Global competitiveness program
Global procurement
Exploit cost advantages in Production Software Engineering Administrative functions Key figures – Q1 of fiscal 2004 in billions of euros Q1 04 Q1 03
Net income 0.726 0.521
Group profit 1.361 1.097
New orders 20.490 20.145
Sales 18.329 18.845
Net cash* 0.064 -0.695
* Excluding cash contributions for pension plans Siemens – Global network of innovation
Robust business portfolio
Power of innovation
Global presence
Sound financial management
Corporate governance
Corporate responsibility