Innovating the Mobile World It s all about execution. Siemens Information and Communication Mobile

Transcription

1 Innovating the Mobile World It s all about execution Siemens Information and Communication Mobile Financial Market Days, May 13th, 2003

2 ICM - business areas Siemens mobile End-to-end (E2E) Networks Solutions Mobile Phones Cordless Products Wireless Modules Information and Communication Mobile 2

3 ICM - growing above the market Mobile Infrastructure CY2002 Mobile Handsets CY Value 3 Siemens 12% 3 Units 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% Information and Communication Mobile 3

4 ICM - performing in a difficult market Sales in billions of euros 12 Restructuring Fitness Program Group profit margin 11% % 8 6.5%*) 5.138*) 8.1% % 5% 4 2.2% 3% 0 0.9% H2003 1% 0% *) comparable (2.7%) Information and Communication Mobile 4

5 ICM - key financial data 2Q03 and 1H03 Sales Group profit Group profit margin Net cash in millions of euros 2Q03 2, % 279 Change yoy (15%) 25% 1H03 5, % 167 Change yoy (11%) 41% Information and Communication Mobile 5

6 ICM - vendor financing in billions of euros % 0 78% % % % % Commitments under negotiation Approved commitments not utilized Approved commitments utilized UMTS GSM/GPRS Information and Communication Mobile 6

7 Siemens - reliable partner AA- Siemens A Competitor A BBB Competitor B BB Competitor C B+ Competitor D B Competitor E B- Competitor F AAA AA+ AA AA- A+ A BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC CC SD/D Speculative Grade Investment Grade May Mai Jun Jul Jul AugSep Okt Nov Nov Dez Jan Jan FebMar Mrz AprMay Mai Jun Jul Jul AugSep Okt Nov Nov Dez Jan Jan Feb Mar Mrz AprMay Mai Jun Jul Jul AugSep Okt Nov Nov Dec Jan Jan Feb Mrz Source: S&P Long Term Credit Rating Information and Communication Mobile 7 Mar

8 ICM - pursuing Mission Increase market share Demonstrate leadership Become the end-toend solution provider Improve employee satisfaction Generate positive group profit + net cash 8-11% Group profit 0.9% 2.2% (2.7%) H 2003 Mission Business target agreements 2004 per employee 2004 Information and Communication Mobile 8

9 ICM - it s all about execution Mission 2004 Powered by top+ Networks Program Solutions S Top+ Traction Mobile Phones C 3 Program Cordless Products Wireless Modules WM Top+ Commercial Projects Overhead cost reduction Knowledge Initiative IT Roadmap Governance & Entrepren. Enforcement High Impact Projects (HIP) Cash + Project Customer + Supply Chain Management Balanced Scorecard for ICM Regional Initiatives Economic Excellence Award US Business Initiative China Business Initiative Other Initiatives Strategic Initiative: End-to-end Solutions Top+ Q Information and Communication Mobile 9

10 ICM Networks Becoming the architect 1 of tomorrows networks! 2 3 Position: Objectives: No. 3 worldwide Over 180 customers in more than 90 countries 20 UMTS contracts No. 2 player in mobile infrastructure Expand global footprint in the Americas, China and Eastern Europe Leading provider of end-to-end solutions Aggressive product cost roadmap Differentiator: Leading technology supplier for UMTS, EDGE, payment Global reach, proven reliability Information and Communication Mobile 10

11 ICM Networks - flashback FMD 2002 Grow above the market Leverage Siemens global reach Aiming for the no. 2 position Customer value & product portfolio Operational excellence Improve profitability Adjustment of costs Information and Communication Mobile 11

12 ICM Networks - market, sales and market share in billions of euros Market Sales % 7.4% 9.8% 12% Market Share CY1999 CY2000 CY2001 CY2002 Sources: Company reports, Siemens estimates Information and Communication Mobile 12

13 ICM Networks - the UMTS opportunities for growing our market share UK Three 2G 3G Siemens 2G/3G radio share 0% 50% Italy Tre 2G 3G 0% 60% Austria Drei 2G 0% 3G 100% Germany T-Mobile 2G 3G 0% 70% Germany VodafoneD2 2G 3G 25% 50% France Cegetel 2G 3G 0% 50% Information and Communication Mobile 13

14 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 Information and Communication Mobile 14

15 ICM Networks - GSM is leading 454 GSM operators worldwide GSM Accumulated subscriber base 792 million GSM in 182 countries GSM fastest growing technology in the Americas CDMA Accumulated subscriber base 146 million YE2002 Source: EMC April 2003, CDMA Association 165 million new subscribers in 2002 YE2002 Information and Communication Mobile 15

16 ICM Networks - regional aspects Our UMTS technology covers all major European countries ~ 10% ICM N market share across all standards in Latin America 8 new orders in 1Q03 in Africa ~ 20% ICM N market share in China Information and Communication Mobile 16

17 ICM Mobile Phones Setting trends in the mobile industry! Position: No. 2 in Europe No. 4 worldwide Objectives: Continue successful entry in the Americas Counter-attack in Asia-Pacific Innovate with meaningful technology & design Emotionalize the brand further Build the fashion phone category (Xelibri TM ) Differentiator: Design leadership, product quality, strong operator relationships Information and Communication Mobile 17

18 ICM Mobile Phones - flashback FMD 2002 Rapid renewal of product range Focus on three key challenges Grow above the market Secure productivity Strengthen brand to support aspirations Expand global presence Reduce time-to market through technology platform standardization Productivity - program Improve ASP Improve cost position of products and channels Increase share of high-margin products/ applications Information and Communication Mobile 18

19 ICM Mobile Phones - market, sales and market share Million units sell-through Market in billions of euros Million units sell-through Sales 4.6% CY1999 CY2000 CY2001 Source: Gartner Dataquest 6.5% 7.4% 8.2% CY2002 Market Share Information and Communication Mobile 19

20 ICM Mobile Phones - market evolution one size does not fit all any more Design is a key element Technology Fashion & Lifestyle Information and Communication Mobile 20

21 ICM Mobile Phones - new products 2003 Information and Communication Mobile 21

22 Xelibri a fashion accessory that makes phone calls Information and Communication Mobile 22

23 ICM Mobile Phones - regional aspects Full-line supplier for the US market No. 1 position in Russia market share of ~ 30% ~ 8% market share in China No. 1 position in Brazil with > 60% market share Information and Communication Mobile 23

24 ICM E2E - flashback FMD 2002 Facilitate the ICM E2E applications offering Gain market share Focus Best in class portfolio with leading partners A&C package integration, development, maintenance, and hosting First Mover regions Europe/Asia Seven solution segments Information and Communication Mobile 24

25 ICM - making significant progress in E2E Market launch: five readyto-sell reference solutions at Cannes 3GSM Congress First sales successes: AIS Thailand, Vodafone Portugal, OI Brazil Prepare the market with commercial lead projects Announcement Five cross-divisional business focus teams Messaging Entertainment Payment Location/Presence Multimedia Services over IP July 2002 October 2002 February 2003 April 2003 Information and Communication Mobile 25

26 ICM - ready-to-sell live E2E in Cannes Different target groups Tailored device segment Enabling services Applications Infrastructure solutions Kids & Fun Solutions 1 C55, S55 Java Download Download Gaming Ring Server Tones MSP Charge@once Download Server, Gaming, MSP, Payment Premium SMS GSM/GPRS 2 Community & Messaging Solutions A55, C55, S55, SX 56 Java SIP Client Push- IMS to- Talk, Chat, IM Fan Portal, MMS- Album, Voice- MMS, Photo Map SMS Push-to-Talk OMIP Location IMS (incl. Presencsence) Pre- Payment MSP IMS MMSC GPRS IMS GSM/GPRS, WLAN 3 Business & Mobility Solutions U10, PocketLoox Multiple Device VIP Assistant VIP Assistant, Mobile Office Travel Streaming Video Telephony Content Management UMTS Payment OMIP Charge@once Location WLAN GPRS UMTS, GPRS, WLAN Tracking & Navigation Solutions SX 56 4 Multiple Track & Trust in-car/off Device Application car navigation Wireless Geotoolbox Module Location, LES Application OMIP Location GPS, GPRS Machine-to- Machine Solutions 5 TC45 Java Vending Java Wireless Machine Module Control & Command Wireless Module Payment Charge@once GPRS Professional Services Architectural Consulting Integration Hosting USP Flexible Charging of Bearers, Contents and Services Voice over GPRS Seamless Access WLAN- UMTS International Tracking M2M Service Charging E2E Know-How Information and Communication Mobile 26

27 ICM - become the leading E2E solution provider % of our customers stated that end-to-end solutions are important part of a suppliers portfolio offering Source: 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 Information and Communication Mobile 27

28 ICM - E2E sales example Customer: AIS Thailand Project: TV on mobile - Real-time video streaming over GPRS Split of responsibilities: AIS: GPRS network operator Shinee.com: User interface creation, content management ITV: Content and service provider Siemens: End-to-end solution provider (video streaming solution, GPRS network, handset clients), system integrator, matchmaker between the parties involved ICM USP: chosen as supplier of a full-scale E2E video streaming solution, service enhancements planned Information and Communication Mobile 28

29 ICM E2E - fixed & mobile convergence Fixed line messaging Global Communication Network Home Management Gigaset Information and Communication Mobile 29

30 ICM E2E - WLAN and UMTS integration Highly mobile Degree of mobility UMTS Handover Roaming Security Billing WLAN Nomadic use Medium Bandwidth High Information and Communication Mobile 30

31 ICM - our commitment for Operation Increase market share 2 Demonstrate leadership 0.9% 2.2% It s all about execution Become the end-toend solution provider Improve employee satisfaction Generate positive group profit + net cash (2.7%) H 2003 Mission 2004 Business target agreements per employee Information and Communication Mobile 31

32 Siemens Investor Relations Team Marcus Desimoni Eckhard von Münchow Christina Schmöe Andreas Schwab Claudia Wagner Webpage: Investor Relations Fax: Group profit definition: Group profit is defined as earnings before financing interest, certain pensions costs, income taxes and certain onetime 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 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. Information and Communication Mobile 32