Transcript
Innovating the Mobile World – It‘s all about execution Siemens Information and Communication Mobile Financial Market Days, May 13th, 2003
ICM - business areas
Siemens mobile End-to-end (E2E) Networks
May 2003
Solutions
Mobile Phones
Cordless Products
Wireless Modules
Information and Communication Mobile 2
ICM - growing above the market Mobile Infrastructure CY2002
Mobile Handsets CY2002
1
1
2
2
3 Siemens 12%
Value
Units
3 4 Siemens 8.2%
No. 3 position with market share
May 2003
12%
No. 4 position with market share
8.2%
Market growth (yoy) -24%
Market growth (yoy)
+6%
Our growth (yoy)
Our growth (yoy)
-10%
+16%
Information and Communication Mobile 3
ICM - performing in a difficult market
Restructuring
Sales in billions of euros 12
8
11.299
6.5%*)
Fitness Program
11.045
9%
8.1%
7%
5.185 5%
4
2.2% 0.9%
May 2003
1999
*) comparable
11%
8.910
5.138*)
0
Group profit margin
2000
2001
2002
3% 1%
1H2003
0%
(2.7%) Information and Communication Mobile 4
ICM - key financial data 2Q03 and 1H03
Sales
Group profit
Group profit margin
2Q03
2,329
55
2.4%
279
Change yoy
(15%)
25%
1H03
5,185
114
2.2%
167
Change yoy
(11%)
41%
Net cash
in millions of euros
May 2003
Information and Communication Mobile 5
ICM - vendor financing in billions of euros 2.0 1.6 1.5
0.3
22%
1.0
0.6
78%
1.3 0 0.7
1.1 0 52% 0.6
58%
0.5
42%
0.5 0.7
0.6
31.03.2002
31.12.2002
48%
0 31.03.2003
Commitments under negotiation
UMTS
Approved commitments not utilized
GSM/GPRS
Approved commitments utilized May 2003
Information and Communication Mobile 6
Siemens - reliable partner AAA AA AAA+ A BBB+ BBB
Investment Grade
AA+
BBBBB BBB+ B BCCC CC SD/D
Speculative Grade
BB+
AASiemens A Competitor A
BBB Competitor B BB
Competitor C
B+ Competitor D B Competitor E B-
Competitor F
Mai Jun Jul Jul AugSep Sep Okt Nov Nov Dez Jan Jan FebMar Mrz AprMay Mai Jun Jul Jul AugSep Sep Okt Nov Nov Dez Jan Jan Feb Mar Mrz Apr May Mai Jun Jul Jul AugSep Sep Okt Nov Nov Dec Jan Jan FebMar Mrz May 00 00 00 00 01 01 01 01 01 01 02 02 02 02 02 02 03 03 00 00 00 00 00 00 00 00 01 01 01 01 01 01 01 01 01 01 01 01 02 02 02 02 02 02 02 02 02 02 02 02 03 03 03
May 2003
Source: S&P Long Term Credit Rating Information and Communication Mobile 7
ICM - pursuing Mission 2004 1 Increase market share 2 Demonstrate leadership
0.9%
3
Become the end-toend solution provider
4
Improve employee satisfaction
5
Generate positive group profit + net cash
8-11% Group profit
2.2%
(2.7%)
2001 May 2003
2002
1H 2003
Mission 2004
Business target agreements per employee
2004
Information and Communication Mobile 8
ICM - it‘s all about execution Mission 2004 Networks
Solutions
Program
S Top+ Traction
Commercial Projects
Regional Initiatives
Other Initiatives May 2003
h+ as C
High Impact Projects (HIP)
Overhead cost reduction
Project
Cordless Products
Mobile Phones C3 Program
Knowledge Initiative
Customer +
Economic Excellence Award
Powered by top+
WM Top+
IT Roadmap
Governance & Entrepren. Enforcement
Supply Chain Management
Balanced Scorecard for ICM
US Business Initiative
Strategic Initiative: End-to-end Solutions
Wireless Modules
China Business Initiative
Top+ Q
Information and Communication Mobile 9
ICM Networks
Becoming the architect of tomorrows’ networks!
1 2
3
Position:
No. 3 worldwide Over 180 customers in more than 90 countries 20 UMTS contracts
Objectives:
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 May 2003
Information and Communication Mobile 10
ICM Networks - flashback FMD 2002
Grow above the market
Leverage Siemens global reach
Customer value & product portfolio
Aiming for the no. 2 position
Operational excellence
Improve profitability Adjustment of costs May 2003
Information and Communication Mobile 11
ICM Networks market, sales and market share in billions of euros 57
60.0 50.0
59
46
40.0
Market
5.2
Sales
5.8
6.0 5.0 4.0
45
4.2 3.0
3.0 2.0 1.0
May 2003
6.5%
7.4%
9.8%
12%
CY1999
CY2000
CY2001
CY2002
Market Share
Sources: Company reports, Siemens estimates Information and Communication Mobile 12
ICM Networks - the UMTS opportunities for growing our market share
UK Three
May 2003
Siemens 2G/3G radio share 2G 0% 50%
3G
Italy Tre
2G
Austria Drei
2G
Germany T-Mobile
2G
Germany VodafoneD2
2G
France Cegetel
2G
0% 60%
3G
0% 100%
3G
0% 70%
3G
25% 50%
3G
3G
0% 50% Information and Communication Mobile 13
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 May 2003
Information and Communication Mobile 14
ICM Networks - GSM is leading
GSM Accumulated subscriber base 792 million
454 GSM operators worldwide GSM in 182 countries GSM fastest growing technology in the Americas
CDMA Accumulated subscriber base 146 million YE2002 May 2003
Source: EMC April 2003, CDMA Association
165 million new subscribers in 2002 YE2002 Information and Communication Mobile 15
ICM Networks - regional aspects Our UMTS technology covers all major European countries
~ 10% ICM N market share across all standards in Latin America May 2003
~ 20% ICM N market share in China 8 new orders in 1Q03 in Africa Information and Communication Mobile 16
ICM Mobile Phones
Setting trends in the mobile industry!
1 2
3
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 (XelibriTM)
Differentiator: Design leadership, product quality, strong operator relationships May 2003
Information and Communication Mobile 17
ICM Mobile Phones - flashback FMD 2002 Rapid renewal of product range
Grow above the market
Strengthen brand to support aspirations Expand global presence
Focus on three key challenges
Secure productivity
Reduce time-to market through technology platform standardization Productivity - program Improve cost position of products and channels
Improve ASP May 2003
Increase share of high-margin products/ applications Information and Communication Mobile 18
ICM Mobile Phones market, sales and market share Million units sell-through 500 450
413
400 350 300
27
5.0
May 2003
Market
30
Million units sell-through
35
Sales
4.0
2.0
400
284
in billions of euros
3.0
423
4.2
4.2
4.3
4.6%
6.5%
7.4%
8.2%
CY1999
CY2000
CY2001
CY2002
13 2.0
Source: Gartner Dataquest
Market Share
Information and Communication Mobile 19
ICM Mobile Phones - market evolution one size does not fit all any more
Design is a key element
Technology
Fashion & Lifestyle
May 2003
Information and Communication Mobile 20
ICM Mobile Phones - new products 2003
May 2003
Information and Communication Mobile 21
Xelibri a fashion accessory that makes phone calls
May 2003
Information and Communication Mobile 22
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 May 2003
Information and Communication Mobile 23
ICM E2E - flashback FMD 2002
Best in class portfolio with leading partners
Gain market share
Facilitate the ICM E2E applications offering
A&C package integration, development, maintenance, and hosting
First Mover regions Europe/Asia
Focus Seven solution segments May 2003
Information and Communication Mobile 24
ICM - making significant progress in E2E
First sales successes: AIS Thailand, Vodafone Portugal, OI Brazil Prepare the market with commercial lead projects Market launch: five readyto-sell reference solutions at Cannes 3GSM Congress Five cross-divisional business focus teams Announcement May 2003
July 2002
October 2002
Messaging Entertainment Payment Location/Presence Multimedia Services over IP February 2003
April 2003
Information and Communication Mobile 25
ICM - ready-to-sell live E2E in Cannes
Applications
11
C55, S55
Java Download Gaming Download Ring Tones Server
MSP Charge@once Download
Enabling services
Infrastructure solutions
USP
May 2003
Server, Gaming, MSP, Payment Premium SMS
33
22
Flexible Charging of Bearers, Contents and Services
44
Machine-toMachine Solutions
Community & Messaging Solutions
Business & Mobility Solutions
A55, C55, S55, SX 56
U10, PocketLoox Multiple
SX 56
TC45 Java
VIP Assistant, Mobile Office Travel
“Track & Trust” Device in-car/off Application car navigation
Multiple
Java Vending Machine Wireless Control & Module
Java SIP Client Push- Fan Portal, IMSMMStoTalk, Chat, IM
Album, VoiceMMS, Photo Map
SMS
OMIP Push-to-Talk Location IMS (incl.
Pre- Presence sence) Payment MSP MMSC IMS
GPRS
GSM/GPRS
Tracking & Navigation Solutions
IMS GSM/GPRS, WLAN
Voice over GPRS
Device VIP Assistant
Video Streaming Content Telephony Management UMTS
Wireless
55
Command
Geotoolbox Module Location, LES Application OMIP
Wireless Module Payment Charge@once
UMTS, GPRS, WLAN
GPS, GPRS
GPRS
Seamless Access WLANUMTS
International Tracking
M2M Service Charging
Payment OMIP Location Charge@once
Location
Professional Services
Hosting
Tailored device segment
Kids & Fun Solutions
Architectural Consulting Integration
Different target groups
WLAN GPRS
E2E Know-How
Information and Communication Mobile 26
ICM - become the leading E2E solution provider 74% of our customers stated that end-to-end solutions are important part of a suppliers’ portfolio offering
3 2
Source: 56 MNO interviews
4
1 5
“the only one who has it live” “real user driven solutions” “most convincing performance” “business now instead of over-hyped technology promotion” May 2003
Information and Communication Mobile 27
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 May 2003
Information and Communication Mobile 28
ICM E2E - fixed & mobile convergence
Fixed line messaging
Global Communication Network
Home Management
Gigaset
May 2003
Information and Communication Mobile 29
ICM E2E - WLAN and UMTS integration Highly mobile
Degree of mobility
UMTS
Handover Roaming Security Billing WLAN
Nomadic use Medium
High
Bandwidth May 2003
Information and Communication Mobile 30
ICM - our commitment for Operation 2003
It‘s ex all a ec bo uti ut on
1 Increase market share
0.9%
2
Demonstrate leadership
3
Become the end-toend solution provider
4
Improve employee satisfaction
5
Generate positive group profit + net cash
2.2%
(2.7%)
2001 May 2003
2002
1H 2003
Mission 2004
Business target agreements per employee Information and Communication Mobile 31
Siemens Investor Relations Team Marcus Desimoni
+49-89-636-32445
Eckhard von Münchow
+49-89-636-33173
Christina Schmöe
+49-89-636-32677
Andreas Schwab
+49-89-636-36165
Claudia Wagner
+49-89-636-33693
Webpage: http://www.siemens.com Investor Relations e-mail:
[email protected] Fax: +49-89-636-32830 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 www.siemens.com
Disclaimer:
May 2003
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
