Infrastructure Investment for
Economic Development
Building Cities, Building Futures
Los Angeles – July 20, 2011
Flavio Zelaya
Vice President, Infrastructure Finance
Siemens Financial Services, Inc.
Copyright © Siemens AG 2011. All rights reserved.
Siemens Overview
Siemens AG - Committed to profit and growth
Revenue by Sector
Healthcare
€12.4 billion
Revenue by region
Cross-Sector
Businesses
4%
Asia, Australia
18%
18%
€3.2 billion
16%
44%
49%
46%
29%
33%
34%
Industry
€34.9 billion
27%
Americas
Energy
€25.5 billion
Germany
Total Revenue Sectors and
Cross-Sector Businesses
15%
40%
Europe, CIS,
Africa, Middle East
(excl. Germany)
Location of customer
Revenue and employees
100.000
Key figures
500
Employees in thousands
Continuing operations
(in millions of euros)
FY2009
FY2010
Revenue
76,651
75,978
78,991
81,163
80.000
400
60.000
300
40.000
200
New orders
100
Income
2,457
4,112
Free cash flow
3,786
7,111
405,000
405,000
20.000
FY
Revenue in millions of euros
1985
1990
1995
2000
2010
Employees
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Copyright © Siemens AG 2011. All rights reserved
Siemens is structured to support infrastructure
and sustainability
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Industry
Energy
Divisions
 Mobility
 Building Technologies
 Motion Control
 Water Technologies
 Industry Automation
 Industry Solutions
 Renewable Energy
 Fossil Power Generation
 Oil & Gas
 Service Rotating Equipment
 Power Transmission
 Power Distribution
Healthcare
Financial Services
Sectors
 Imaging & IT
 Workflow & Solutions
 Diagnostics
Copyright © Siemens AG 2011. All rights reserved
Siemens Financial Services
Lending
Infrastructure & Industry
Equipment, Structured
and Project Finance
Energy
Healthcare
Senior Debt and
Project Finance
Leases, Loans
and Real Estate
Corporate Finance
Advising
Investing
Cash Flow and Asset-Based Lending
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Project Ventures
Invests in Siemens energy, infrastructure and medical projects
Venture Capital
Equity investments in emerging tech companies
Project & Export Finance
Advisory to Siemens and Siemens’ customers
Risk Management / Insurance
Advisory and purchase of insurance for Siemens
Copyright © Siemens AG 2011. All rights reserved
Infrastructure investment and
economic development
 In a globalized economy, investments in infrastructure are key drivers for economic development and sustaining the
competitiveness of regions.
 Siemens has been active as a supplier of equipment and technologies to public sector agencies and project developers.
 SFS has also been active in providing financing for energy infrastructure projects, as well as providing equipment financing
solutions for transportation projects.
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Copyright © Siemens AG 2011. All rights reserved
Budget constraints are driving interest in
alternative methods for delivering infrastructure
 Around the world, governments and public sector entities remain by far the main
drivers of investment in infrastructure projects.
 However, budget constraints are causing more governments to consider
alternative methods of procurement such as public private partnerships (P3s) to
leverage private sources of capital for vital infrastructure projects.
 Private equity firms and pension funds (e.g., CalPERS) have allocated billions of
dollars for potential investments in essential infrastructure projects.
 According to Dealogic Projectware, the volume of P3 transactions surged last
year with 224 P3 deals worth $75.3 billion closing in 2010 in comparison with 179
deals worth $56 billion closing in 2009.
.
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Copyright © Siemens AG 2011. All rights reserved
P3s will complement traditional methods of
delivering infrastructure projects
 While P3 transactions are widely used in Europe, Australia and Canada to deliver
infrastructure projects, they are relatively new to the United States.
 Nevertheless, over 20 States have adopted some form of P3 enabling legislation,
including California. Furthermore, several States, including California, have
established dedicated agencies and commissions to select and facilitate P3
transactions for suitable projects.
 Since the financial crisis, Florida, Texas, Colorado and California successfully
completed P3 procurement processes for new infrastructure projects. Construction
for these projects is under way, creating new jobs.
 P3s will be one of several financing options for governments, alongside traditional
procurement methods. As providers of equipment, equity and debt financing,
Siemens and SFS are able to play a significant role in support of such projects.
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Copyright © Siemens AG 2011. All rights reserved
SFS remains focused on providing financial solutions
for varying infrastructure projects
Equipment
Financing
Project /
Structured
Finance
Equity
Advisory
Building Technologies
(e.g. energy savings, solar)
Water Technologies
Mobility (e.g. Trains, Aircraft)
Energy (e.g. Transmission,
Storage, Generation)
Healthcare
(incl. Real Estate)
Large Infrastructure Projects / P3s
(e.g. Toll Roads, Bridges, Tunnels, Ports,
Airports)
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Copyright © Siemens AG 2011. All rights reserved
Questions
Flavio Zelaya
Vice President, Infrastructure Finance
Siemens Financial Services, Inc.
flavio.zelaya@siemens.com
Copyright © Siemens AG 2011. All rights reserved