A&D - Trendsetter in Innovation - Siemens...Siemens A&D Siemens A&D Schneider El. Mitsubishi ABB ABB GE Rockwell ... Toolbox. May 2003 Automation and Drives 21 A&D Optimization of
Post on 26-Feb-2020
16 Views
Preview:
Transcript
A&D - Trendsetter in Innovation
Helmut Gierse, Group PresidentAutomation & Drives
Financial Market Days, May 13, 2003
May 2003Automation and Drives 2
. . . allows industrial and electro-technical solutions with high economicbenefit for our customers
! PLC! Switchboards! Circuit Protection! Process Instruments
and Analytics! HMI! Motors! MES Products! etc.
Products
! Control Systems
! PLC-, CNC-, DCS-Systems
! Drive Systems
! Bus Technologies
! Software Systems
! etc.
Systems
! Complete Factory Automation for " Automotive" Chemicals" Pharmaceuticals" Food & Beverage
! Motion Control Solutions
Solutions
The consistency of our products and systems . . .
A&D business activities
May 2003Automation and Drives 3
All business units in #1 or #2 position
Increase EVA (economic value added) in all business units (cost of capital: 9%)
Group profit margin target: 11% - 13%
Working capital turnover: 6.5
Long term Sales growth: two times market growth (market growth ~2.5% p.a.)
A&D strategic goals
May 2003Automation and Drives 4
Performance drivers
Build on clear global #1 position
Leading company active in manufacturing and process automation
Technology trendsetter in innovation
Extend regional coverage: Asia; USA
Optimize cost structure and processes
A&D continuously uses all levers to improve profitability
May 2003Automation and Drives 5
A&D business activitiesLow voltage control and installation technologies
Market slowdown due to weak economic environmentin building markets
! Broad market fields in all industries, private and commercial construction
! Low volatility in business cycles, mode-rate growth rates over a long time
! National standards and short time to delivery need global presence and sales by local distributors
Market Characterization
2000 2001 2002
Sales
! Solid #2 position
! Continuous innovation of products
! Extended use of software and bus technology
! Optimizing and restructuring US operations
Highlights
2.6 2.72.4
in billions of euros
May 2003Automation and Drives 6
A&D business activitiesMotion control
A&D is a world leader for motion control components and systems
2000 2001 2002
Sales
! #1 position in the widespread field of motion control and drive systems
! New motion control system Simotion
! New drive platform Sinamics
! Improvement of cost position for large motors
Highlights
2.83.2 3.2
! Customers in all industry segments
! Strong cyclicity due to capital spending
! Trend to substitute mechanical automation solution by mechatronics
! Highly fragmented markets in motor business field
Market Characterization
in billions of euros
May 2003Automation and Drives 7
A&D business activitiesManufacturing automation
A&D is the clear market leader in factory automation systems
! Widespread applications in all industry segments
! Continuous trend to machinery automation
! Further growth due to impact of sensor technology
! Great importance of installed base! Long term system pre-definition by
customers
Market Characterization
2000 2001 2002
Sales
! Strong #1 position
! Simatic IT-framework for consistent MES-solutions
! Component based automation
! New system concept in fail safe technology
Highlights
2.73.0 2.9
in billions of euros
May 2003Automation and Drives 8
A&D business activitiesProcess automation
A&D is aiming at a solid No. 3 position in process automation
! Cyclicity in business growth due to capital expenditure in process industries
! High importance of engineering know how
! Highly concentrated market in DCS technology
! Large variety in field of instrumentation products
! Trend to hybrid automation
Market Characterization
2000 2001 2002
Sales
! Improved and scalable control system PCS7 for small to very large batch processes
! Completion of portfolio for field devices and analytics
! Concentration of engineering know how in a new business unit
Highlights
0.80.9 0.9
in billions of euros
May 2003Automation and Drives 9
Low Voltage Control andInstallation Technologies Motion Control
Manufacturing Automation Process Automation
Siemens A&D Siemens A&D
Schneider El. Mitsubishi
ABB ABB
GE Rockwell
Eaton Fanuc/GEF
Siemens A&D Siemens A&D
Rockwell Emerson
Mitsubishi ABB
Schneider El. Honeywell
Omron Yokogawa
9% 11%
17% 6%
7% 5%
6% 5%
5% 4%
14% 6%
6% 14%
4% 13%
3% 11%
3% 6%
Figures 2002 (estimated)
Competition and market sharesin A&D‘s business activities
May 2003Automation and Drives 10
A&D business figures
Ordersthereof international
Group profitin % of sales
Salesthereof international
Employees (in 1,000)
Research & Developmentin % of sales
Capital Spendingin % of sales
8,7285,373
8,6355,341
7238.4%
20022001
9,0655,602
-4%
-3%
+11%
+13%8,9475,502
98111.0%
2472.9%
51.2
5115.9%
4294.8%
54.2
4985.6%
Q2_03Q2_02
2,168
2,133
1386.5%
59 2.8%
52.7
–
2,155
2,034
1849.0%
50.6
653.2%
–
-1%
-5%
Net Cash from operating and investing activities
1,019533 272 275
in millions of euros
May 2003Automation and Drives 11
Innovation: To raise our customer‘s benefit
Speed up machining and accuracy
Minimize downtime, service and maintenance
Reduce time and cost for engineering and start-up phase
Enhance quality of machining output
Reduce life cycle costs of machinery and plant investment
Improved competitiveness and profitability of our customers lead to increasing sales and new orders for A&D
May 2003Automation and Drives 12
. . . is consequently developed and extended since 1996
TIAA&D
TIPPTD SBT
>=110kV
MESManufacturing ExecutionSystem
ERPEnterprise ResourcePlanning
Auto-mation
Medium Voltage
Low Voltage
! Data Management! Engineering! Communication
! Cost Reduction! Time Advantage! Efficiency Advantage
Threefold Consistency Threefold Customer Benefit
Our philosophy Totally Integrated Automation (TIA) and Totally Integrated Power (TIP) . . .
May 2003Automation and Drives 13
A&D: Technology trendsetter in innovation
1995 2002
Sirius
Sinumerik840
Simodrive 611
Mobic
Windows-Based HMI
Component based Automation
Simotion
Simatic.Net
Sinamics
PC based HMIPro Tool
Simatic S7
PCS7
1FK7
Nearly every year one major innovation besides numerous improvements and redesigns/updates for more competitive and cost reduced
products and systems
May 2003Automation and Drives 14
Continuation of setting trends in technology:A&D-MES products in a framework strategy
We shape the industrial standard with our products in the quickly growing MES-market
MES-World (today) Implementation within A&D
IT Components
HistoricalData
Management
ProductionExecution
ProductionDispatching
DetailedProductionScheduling
ProcessAnalysis
ProductionAnalysis
(QA) ProductAnalysis
ProcessMonitoring
ManualOperations
ResourceManagement
ProductionTracking
ProductDefinition
Management
AutomatedControl
ERP (SAP etc.)
ERP-Interface
SIMATIC IT Components
Res
ou
rce
Man
agem
ent
SIMATIC IT Framework
ERP (SAP etc.)
Pro
du
ctio
n D
isp
atch
ing
Pro
du
ctio
n T
rack
ing
Pro
du
ctio
n D
isp
atch
ing
Pro
du
ctio
n A
nal
ysis
Pro
cess
An
alys
is
Au
tom
ated
Co
ntr
ol
May 2003Automation and Drives 15
Automation platform solutions vs. best of breed product solutions
Within the TIA concept different kinds of processes can be handled with one automation philosophy
Enterprise Resource Planning (ERP)
MES-System (SIMATIC IT Framework)
Control Systems (SIMATIC S7, PCS 7)
PLC based
Inbound Logistics
DCS based Motion Control based PLC based
Primary Process Secondary Process Outbound Logistics
Industrial Networks (PROFIBUS, Ethernet)
Actuators (Motors, Drives) and Sensors (Simotion/Sinumerik)
Auxiliary Processes: Electrical Power Distribution, HVAC, Building Automation ...
May 2003Automation and Drives 16
Bathtub
High quality and cost effectiveness in large parts production
! Stability and maximized weight reduction due tothin-walled structures
! Improved surface quality
! Time optimized machining
! Eco friendly production processes
Out of a 3,200 kg aluminum slab a 50 kg bathtub for the new Airbus A380 will be milled in 31.2 hours
Close collaboration between end-user, machine tool builder and automation technology provider reduces machining time and costs
Innovative parallel-cinematic machine concept withCNC-functionality of Sinumerik 840D
Integrated engineering chain from Catia CAD/CAMsystem to CNC-Control by NURBS interface
High speed cutting maximizes material removal rate
Dry run saves about 80,000 l cooling lubricants
May 2003Automation and Drives 17
Oct.01
Jan.02
Apr.02
Jul.02
Oct.02
Jan.03
Apr.03
Jul.03
Oct.03
Cont
rolle
rs
Simotion successfully replaces competitor solutions in the field ofmechatronic production machinery
Project MixSimotion Start-up: faster than expected
Customer Benefit Through Cost Reduction
40%
10%
20%
15%
15%
17%
38%
18%
15%
12%
-15%
Logistics
Assembly
R&D
Mechanics
Electronics
10%new machinedesign
10%improved Siemenssolutions
Simotion: Starting a new story of success
80%replacementof competitor
solutions
Oct.01
Jan.02
Apr.02
Jul.02
Oct.02
Jan.03
Apr.03
Con
trolle
rs
plannedrealized
May 2003Automation and Drives 18
Sinamics drive platform: Economic values
Reduction of complexity
achievedold target
Reduction of R&D expenses
achievedold target
Market entry Reduction on product costs
achievedold target
parts-30%
-40%
-33%-30%
-15%-30%
2003 2004
Sinamics G110compact standard drives
Sinamics S120modular drives
Sinamics S150large drive cabinets
Sinamics G150large drive cabinets
The platform concept leads to reduction of product costs and advantages in asset management
May 2003Automation and Drives 19
China: Attractive market for A&D
The development in the Chinese industry – especially in production –requires A&D’s global presence with an increasing local value added
80 85 90 95 96 97 98 99 00
80 85 90 95 96 97 98 99 00
80 85 90 95 96 97 98 99 000
100
200
300
400
500
Bn. U
SD
! Production 16% p.a. 4%
! Imports 12% p.a. 6%
! Exports 14% p.a. 6%
Industrial Growth Rates 1980-2000
! Sales 2002 approx. 300 millions of EUR
! Growth 1998-2002: 34% p.a.
! Increase share of local value added from 25% (1998) to 50% (2002)
Development of A&D in China
Export Volume Industry
Import Volume Industry
Industrial Production
0
100
200
300
Bn. U
SD
0
100
200
300
Bn. U
SDGermanyChina
For comparison: German Industrial Production 2000:
1,200 billions of USD
May 2003Automation and Drives 20
Leadership and collaboration
Quality
AssetManagement
Business driver scorecards
Best practice sharing
Salesstimulation
Costeffectiveness
Innovation
eBusiness
Benchmarking
Implementation of the tools ensures our success
Toolbox
May 2003Automation and Drives 21
A&DOptimization of cost structures and processes
! Benchmarks
! Productivity
! Time to market
! Logistics
! Quality management
! eBusiness
! A&D automation platform
! Asset management
! Headquarters II
! Increase of effectiveness/efficiency in sales (incl. sales stimulation program)
! Internationalization/optimiza-tion of value creation structure
! Process standards rollout
With the program we find all hideouts for unnecessary expenses and activities and fix well defined process standards
Leverage of vertical synergies Leverage of horizontal synergies
in A&D divisions cross-divisional activities
May 2003Automation and Drives 22
Levers in profitablity
! Reduce capital expenditure
! Enhance outsourcing
! Optimize logistics
Asset Management
! Enhance factoring
! Tough cash management
Debtor / Creditor Management
! No Maverick buying
! Pooling purchases
! Sourcing in low cost countries
! eProcurement approx. 1/3 of total
Procurement
. . . are main levers for A&D’s net cash generation of more than 1 billion EUR in 2002
Continuous improvement in structure and processes . . .
May 2003Automation and Drives 23
0
100
200
300
400
500
19 98 1999 2000 2 001 2002
Europa Ame ricas Asia/Pacif ic Africa, CM E, CIS
Customers: Account management
In segments served by Account Management orders grow fasterthan the market
Number of Account Teams Cross-Group Order-Growth through APP+*) in different Segments
Automotive
Chemical &Pharma
Food &Beverage
Oil & Gas
8%
4%
20%
57%
Growth of orders year to year with “AM-customers”
Segment Boards
Food & Beverage Automotive Chemical & Pharma-ceutical Industry Oil & Gas
Metal & Mining Pulp & Paper Airports*) Account Plan Process+
EuropaAmericasAsia/AustraliaAfrica, CME, CIS ~ 470
0
100
200
300
400
500
1998 1999 2000 2001 2002
May 2003Automation and Drives 24
Account management: Complete solutions for the automotive industry
Maintenance, auxiliary process management and auxiliary industry facility managementI&
S
Systems, complete solutions and services for power supply and energy managementPT
D
! Press shop! Body shop! Assembly shop! End of line testing! Powertrain! Conveyer solutions
! Logistics! Production management! Quality management! Maintenance management! General contracting
A&
D
Complete cross-group industry solutions through our sector development boards
May 2003Automation and Drives 25
Summary and outlook
! Trendsetter in Innovation
! Growth
! Increase EVA
! Optimize cost structure and processes
. . . to enhance outstanding customer value
Automation and Drives . . .
“The Power of Integrated Automation”
May 2003Automation and Drives 26
Glossary
A&D Automation and Drives
APP+ Account Plan Process+
CAD Computer Aided Design
CAM Computer Aided Manufacturing
CE Consumer Electronics
CIS Commonwealth of Independent States
CME Central and Middle East
CNC Computerized Numerical Control
DCS Distributed Control Systems
ECOFAST Energy and Communication FieldInstallation System
EMC Electro Magnetic Compatibility
ERP Enterprise Resource Planning
EVA Economic Value Added
HMI Human Machine Interface
HV High Voltage
HVAC Heating, Ventilating and Air Conditioning
I&S Industrial Services & Solutions
IQ-Sense Intelligent Sensors
IT Information Technology
MES Manufacturing Execution System
MV Medium Voltage
NURBS Non-Uniform Rational B-Splines
OEM Original Equipment Manufacturer
PG Power Generation
PLC Programmable Logic Controller (SPS)
PTD Power Transmission and Distribution
R&D Research and Development
SBT Siemens Building Technology
SD Siemens Dematic
TIA Totally Integrated Automation
TIP Totally Integrated Power
TS Transportation Systems
May 2003Automation and Drives 27
Webpage: http://www.siemens.com Investor Relations e-mail: Investorrelations@siemens.comFax: +49-89-636-32830
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
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.
Siemens Investor Relations Team
Group profit definition:
Group profit is defined as earnings before financing interest, certain pensions costs, income taxes and certain one-time 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
top related