Siemens Vietnam June 2016
Table of content Siemens worldwide 3 Siemens Vietnam at a glance 14 Corporate Social Responsibility 35 Contact 37 Page 2
Second quarter of fiscal 2016 Key figures Key figures Siemens (Q2 2016 Q2 2015) (Continuing operations; in millions of except where otherwise stated) Q2 2016 Q2 2015 Change in % Volume Orders 22,294 20,754 7% Revenue 18,996 18,049 5% Profitability and capital efficiency Net income 1,480 3,908 (62)% Return on capital employed (ROCE) 2 14.9% 45.5% Liquidity Q2 2016 Q2 2015 Free cash flow 1 812 (241) Employees (in thousands ) Sep. 30, 2015 Total (continuing operations) 348 Germany 114 Outside Germany 234 1 Continuing and discontinued operations Results of operations (Q2 2016) (in millions of ) Industrial Business Power and Gas Wind Power and Renewables Energy Management Building Technologies Mobility Digital Factory Process Industries and Drives Healthcare (separately managed) Financial Services (SFS) Orders 6,188 2,140 2,985 1,460 1,825 2,576 2,305 3,245 243 Revenue 3,926 1,460 2,709 1,443 1,915 2,400 2,145 3,319 243 Profit 535 137 172 111 153 363 89 555 226 Profit margin 13.6% 9.4% 6.3% 7.7% 8.0% 15.1% 4.1% 16.7% 31.8% 2 2 Return on equity (RoE) Page 3
Fiscal 2015 Key figures Key figures Siemens FY 2015 (Continuing operations; in millions of except where otherwise stated) FY 2015 FY 2014 Change in % Volume Orders 82,340 77,657 (6)% Revenue 75,636 71,227 (6)% Profitability and capital efficiency Net income 1 7,380 5,507 34% Return on capital employed (ROCE) 1 19.6% 17.2% Liquidity Free cash flow 1 4,674 5,201 Employees (in thousands) Sep. 30, 2015 Sep. 30, 2014 Total (continuing operations) 348 338 Germany 114 114 Outside Germany 234 224 Revenue by industrial business Healthcare 17% Process Industries and Drives 13% Digital Factory 13% Mobility 10% Revenue by Region Asia, Australia 20% Americas 29% Power and Gas 17% Wind Power and Renewables 7% Energy Management 16% Building Technologies 8% Not included: Financial Services (SFS) Europe, CIS 2, Africa, Middle East (without Germany) 36% Germany 15% 1 Continuing and discontinued operations 2 Commonwealth of Independent States Page 4
Global presence Close to customers all over the world Germany 11.2 billion 114,000 15% 33% Share of total worldwide Europe (excluding Germany), CIS, Africa, Middle East 27.6 billion 36% 98,800 28% Share of total worldwide Americas 21.7 billion 73,500 29% 21% Share of total worldwide Asia, Australia Revenue by customer location Employees as of September 30, 2015 All figures refer to continuing operations. CIS: Commonwealth of Independent States 15.1 billion 61,500 20% 18% Share of total worldwide Page 5
Our new claim Page 6
What our new claim stands for "Ingenuity" stands for innovation, engineering and genius. For us, it also includes unity: We are united in our efforts, and we are committed to partnering with 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 value for customers, employees and society. Page 7
Megatrends Challenges that are transforming our world Digitalization By 2020, the digital universe will reach 44 zettabytes a 10-fold increase from 2013 1 Urbanization By 2050, 70 percent of the world s population will live in cities (2014: 54 percent) 3 Demographic change The earth s population will increase from 7.3 billion 2 people today to 9.6 billion 3 in 2050. Average life expectancy will then be 83 years 2 Globalization The volume of world trade nearly doubled between 2000 and 2014 5 Page 8 Climate change According to scientists, in the summer of 2015, Earth's atmosphere had the highest CO 2 concentration 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, November 11, 2015 5. UNCTAD Statistics, Values and shares of merchandise exports and imports from 1948 to 2014, November 10, 2015
Vision 2020 Innovation is our lifeblood Investment in research and development 4.5 billion R&D expenditures in FY 2015 Inventions and patents securing our future 32,100 R&D employees 1 University cooperation our knowledge advantage Corporate Technology our competence center for innovation and business excellence 7,800 Employees worldwide 5,300 Software developers 7,650 3,700 Inventions 1 Patent applications 1 9 CKI universities 16 Principal partner universities 1,600 Researchers 400 Patent experts 1 In fiscal 2015 Employee figures as of November 2015 Page 9
Vision 2020 A lived ownership culture Equity Supports a sense of long-term, output, and profit orientation Values Our foundation Responsible Excellent Innovative Ownership culture Leadership Be bold, decisive, and courageous Siemens first Motivate and engage Behaviors Respect Focus Initiative and execution People orientation Empowerment and trust Honesty, openness, and collaboration Page 10
Vision 2020 Electrification, automation, and digitalization Global trends Digitale transformation Globalization Market development (illustrative) Digitalization Automation ~7 9% market growth ~4 6% market growth Urbanization Demographic change Electrification ~2 3% market growth Today Mid term 2020 Climate change Power Generation Power transmission, distribution, and smart grid Efficient energy application Imaging and in-vitro diagnostics Page 11
Vision 2020 A customer-oriented setup Power and Gas Building Technologies Dresser- Rand Business Wind Power and Renewables Energy Management Mobility Digital Factory Process Industries and Drives Healthineers (separately managed) Financial Services Power Generation Services Power Generation Power transmission and distribution Efficient energy application Imaging and in-vitro diagnostics Corporate Core Corporate Services 30 Lead Countries Page 12
We stand for our values Responsible Excellent Innovative The culture of a company and its values make the difference. People rightly associate Siemens with reliability, fairness and integrity. Joe Kaeser President and CEO of Siemens AG Page 13
Siemens in Vietnam Milestones Two industrial steam turbines & electrical equipment for Bai Bang Paper Company 1979 1993 Opening of Representation Offices in Hanoi and Ho Chi Minh City First Magnetic Resonance System in the Friendship Hospital in Hanoi 1996 Power Island for 1,500MW Ca Mau 1&2 CCPP & the longterm maintenance service contract in 2008 2002 Inauguration of Siemens Automation Systems Ltd. Establishment of Siemens Limited Page 14 2005 Power island for 750MW Nhon Trach 2 CCPP 2008 Electrical package, automation system and gear units for Cong Thanh Cement Plant 2009 The first PET/CT Biograph Truepoint 64 & Cyclotron systems at Cho Ray Hospital in Ho Chi Minh City 2010 Siemens Building Management System for Bitexco Financial Tower 20th Anniversary of official establishment in Vietnam 2011 SCADA/DMS and 110kV unmanned substations for Southern Power Corporation 2013 Supply contract of numerous imaging equipments for Vinmec International Hospital in Hanoi 2014 Sole-provider of the entire medium and low voltage components for National Assembly House Supply of parts for compressors and steam turbines for Ninh Binh Fertilizer Plant. 2015 2016 Supply contract of materials and services for 500kV Son La Substation
Siemens in Vietnam Our mission to be a long-term and trusted partner providing Vietnam with innovative and affordable world-class infrastructure portfolio Page 15
Siemens in Vietnam Our values & Working principles Our values Our working principles Responsible 1. We respect and follow the rules and laws. 2. We place the company and the team targets beyond our individual ones. 3. We manage and respect the time. Excellent 4. We keep customer-focus both internally and externally. 5. We are one team with clear roles, mutual trust, respect and collaboration. 6. We are constructive and act with accountability. 7. We contribute to our strategy to be more successful in the market. 8. We encourage open and proactive communication and interaction. Innovative 9. We support innovation and continuous improvement. Page 16
Siemens in Vietnam An industry benchmark in Compliance Being a responsible company this is our foundation. With our compliance system, we want to establish compliance in the minds and actions of all Siemens employees. Page 17
Siemens in Vietnam Innovation and market leader in a wide range of businesses Hanoi Branch Office Power and Gas Wind Power Power Generation Services Da Nang Branch Office Energy Management Building Technologies Mobility Binh Duong Siemens Busway Factory Ho Chi Minh City Head Office Page 18 Digital Factory Process Industries & Drives Siemens Healthineers (separately managed)
Power and Gas Powerhouse in power generation The Power and Gas Division offers utilities, independent power producers, engineering, procurement and construction companies (EPCs), oil and gas and industrial customers a broad spectrum of products and solutions for the generation of power from fossil or renewable fuels that are environmentally compatible and resource-saving and that reliably transport oil and gas. siemens.com/ar/power-gas Page 19
Power and Gas Leading supplier of gas turbines for combined cycle power plants in Vietnam Siemens is the leading supplier of combined cycle power plants (CCPP) in Vietnam such as 740MW Phu My 3 CCPP, 1.500MW Ca Mau 1&2 CCPP, 750MW Nhon Trach 2 CCPP. Our gas turbines offer high efficiency, reliability, and environmental sustainability: Using Siemens technology, Nhon Trach 2 CCPP has achieved the net efficiency of more than 57% while nitrogen oxide emission at full load on gas is very low at 25 ppm (parts per million) or less. In Fiscal year 2015, we received the Operating Plant Service Agreement extension (OPSA) for Phu My 2-1 Extension Power Plant; and completed Ca Mau 2 major outage with outstanding results. In 2015, Siemens accounted for about 10% of the total power generation capacity fleet of Vietnam. Page 20
Wind Power World market leader in offshore wind power The Wind Power Division is a leading supplier of reliable, environmentallyfriendly, and cost-efficient wind energy solutions. Driving down the cost of wind power is the key target as Siemens strives to make renewable energy fully competitive relative to conventional energy sources. As they are especially and reliable and cost-efficient, the wind turbines offered by Siemens Wind Power and Renewables are a worthwhile investment both from a financial and environmental perspective. With over 31,000 megawatts of wind power installed, the Division delivers clean, renewable energy from on-shore and offshore installations all over the world. siemens.com/ar/wind-renewables Page 21
Wind Power Reliable provider for Vietnam wind market Siemens supplied the equipment for 110kV switchyard of Tuy Phong wind farm in Binh Thuan Province the first wind power plant in Vietnam. Completed and put into running since 2012 by Vietnam Renewable Energies JSC (REVN) with the total capacity of 30MW, Tuy Phong wind farm is generating approximately 85 million kwh of electricity and reduces CO 2 emissions by around 58,000 tons per year. Page 22
Energy Management Partner for efficient power infrastructure The Energy Management Division is one of the leading global suppliers of products, systems, solutions, and services for the economical, reliable, and intelligent transmission and distribution of electrical power. As the trusted partner for the construction and expansion of an efficient and reliable power infrastructure, the Energy Management Division provides utility companies and industrial customers a portfolio that meets their needs. The portfolio ranges from systems for the low-voltage and distribution level of power grids to smart grid and energy automation solutions, power supply for industrial plants, and high-voltage transmission systems. siemens.com/ar/energy-management Page 23
Energy Management Trusted partner for efficient and reliable power distribution in Vietnam Siemens provides the latest innovative technologies to many major 500kV substations of Vietnam such as Song May, Quang Ninh, Nho Quan, Son La, Duyen Hai, Pho Noi and Mong Duong. Siemens is the number one supplier of busway on Vietnam market with a market share of 25%. Our busway has been exported to more than 30 countries around the world. Siemens provided 220kV GIS substations such as Tay Ho and Thanh Cong substations in Hanoi, helping to ensure the safe and stable power supply for the capital city and improve the living standard of the city dwellers. Siemens SCADA/DMS system and 110kV Unmanned Substations are expected to remarkably improve the availability and efficiency of the distribution networks in 21 cities and provinces in the southern region of Vietnam, as well as reduce power losses and make a huge saving. Page 24
Building Technologies World leader in building technologies The Building Technologies Division is a leading worldwide provider of secure, energy-efficient, and environmentally friendly building and infrastructure technologies. As a technology partner, advisor, service provider, system integrator and supplier, the Division offers solutions for fire safety, security, building automation, heating, venting, and air conditioning (HVAC), as well as energy management. siemens.com/ar/building-technologies Page 25
Building Technologies The leading supplier of Building Management System in Vietnam Siemens provided the Total Building Solution for Bitexco Financial Tower - one of the most impressive buildings in the world, to ensure the energy efficiency, safety and security. With Siemens technologies, our customer has been able to save energy cost by approximately 20%. Siemens is the supplier of products, systems and engineering for building management system (BMS) and environment management system (EMS) for ACE Sanofi factory in Saigon Hi-Tech Park, District 9, Ho Chi Minh City - the biggest pharmaceutical factory in Vietnam up to now. Page 26
Mobility Transportation solutions for the future Efficient and integrated transportation of people and goods by rail and road all products, solutions, and services of Siemens related to mobility are bundled in the Mobility Division. The Mobility 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 more environmentally friendly and efficient, and to make train schedules and freight shipments more reliable. siemens.com/ar/mobility Page 27
Mobility Intelligent and efficient solutions for the urban development of Vietnam Siemens mass transit systems such as metro systems can address the growing demand for transportation in densely populated cities like Hanoi and Ho Chi Minh City. Siemens Intelligent Transportation System can support traffic managers in Vietnam to: Synchronize traffic lights to keep vehicles moving Provide drivers with information to help them make smarter decisions on the road Deliver accurate and timely information to transportation managers so they can prevent bottlenecks before they happen Withstand harsh environments with products that can operate reliably in extreme temperatures Page 28
Digital Factory Partner of the manufacturing industry worldwide The seamless integration of data along the industrial value chains will gain more and more importance and become a key criterion for the survival of development and manufacturing companies. The Digital Factory Division aims to provide its customers with a comprehensive portfolio of hardware and software products that enable the comprehensive integration of data from development, production and suppliers. The complete digital representation of the entire physical value chain is our ultimate goal. We call the solution platform that we created for this purpose "Digital Enterprise." siemens.com/ar/digital-factory Page 29
Digital Factory Leading provider of digital factory solutions in Vietnam Siemens is the leading provider in factory automation in Vietnam. Our automation solutions have helped customers in water treatment, food and beverage, paper, cement, machinery, chemical, metal and other industries to enhance their productivity, energy efficiency and flexibility while at the same time mitigate the impact on the environment and improve their competitive capacity on the market. Siemens Totally Integrated Automation (TIA) helps Vietnamese customers reduce engineering time by 30 50% which translates to significant cost and energy savings. Page 30
Process Industries and Drives Increased productivity, shorter time to market With innovative, integrated technology across the entire lifecycle, we support customers continuously improve the reliability, safety, and efficiency of products, processes and plants. The Process Industries and Drives Division provides future-proof automation, drive technology, industrial software, and services based on best-in-class technology platforms such as Totally Integrated Automation (TIA) and Integrated Drive Systems (IDS). siemens.com/ar/process-industries Page 31
Process Industries and Drives Increasing efficiency, reliability and safety for Vietnam s process industries Siemens supplies a complete electrical and mechanical package including automation system and gear units of all mills for the production line 2 at Cong Thanh Cement Plant in Thanh Hoa province. With the capacity of 12,000 tons clinker per day, this project is one of the largest single cement production lines in Asia. Siemens flow meters are helping Vietnamese customers in water treatment industries lower the water leakage levels from 30% to 15%. Siemens provided the integrated drive system for Thu Duc 3 water plant, offering customer high reliability, flexibility and suitability. In operation since August 2015, Thu Duc 3 Water Plant is providing 300,000 cubic meters of clean water per day for a total of 600,000 households. This helps to mitigate the water pressure for four outer districts and parts of two central districts in Ho Chi Minh City, especially in dry season. Page 32
Siemens Healthineers Next-generation medical technology The healthcare market is in ongoing transition and we see healthcare providers worldwide drive consolidation, an increasingly industrial logic of healthcare delivery, and a shift from treating illness to managing health ultimately looking for ways to improve outcomes while reducing costs. We aspire to be the partner to help achieve this goal. To live up to our ambition, we are determined to answer the questions that drive your business development. To overcome lack of specialized staff, ensure consistent outcomes across an organization, increase competitiveness, avoid profitability risks, and implement growth strategies, we are your partner that you can rely on to stand out with clinical excellence, operational efficiency, and financial profitability. Now s our time to inspire the future of healthcare together. siemens.com/ar/healthcare Page 33
Siemens Healthineers Leading provider of high-tech medical equipments in Vietnam Siemens Healthineers is one of the leading suppliers of medical imaging equipments in Vietnam. Siemens Healthineers is one of the market leaders in Laboratory Diagnostic in Vietnam. Siemens Healthineers has provided hundreds of imaging units to hospitals and clinics across Vietnam such as Bach Mai, Cho Ray, Dong Nai General Hospital, Vinmec International together with many provincial and military hospitals countrywide, etc. Siemens Healthineers installed and upgraded Aptio TM Automation platform at MEDIC Center in Ho Chi Minh city enabling this center to be the most modern laboratory in Vietnam. Page 34
Siemens Vietnam Committed to good corporate citizenship in Vietnam Education & Training Public Welfare & Healthcare We focus on the education and training of young people supporting students, future scientists and engineers as well as schools and universities to stimulate interest in the natural sciences and technology. Corporate Citizenship We strongly encourage our employees to take part in disaster relief as well as organized employee volunteering programs to help seriously affected people come back to their normal life. Disaster Relief & Employee Volunteering We do not only provide fast, practical aid in natural disasters, but have made a long-term commitment to permanently improve living conditions for as many people as possible. Page 35
Siemens Vietnam Our corporate citizenship activities in Vietnam Page 36
Contact Communications and Government Affairs Siemens Vietnam E-mail: info.vn@siemens.com Website: www. Follow us at: www.facebook.com/siemens.vietnam Customer Services & Support Toll Free Hotline 1800-588820 Page 37