Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Deutsche Bank German, Swiss & Austrian Conference 2015
22 slides from Siemens Aktiengesellschaft's conference presentation, Jun 17, 2015
Slide 1: Disciplined execution of Vision 2020
Ralf P. Thomas, CFO Disciplined execution of Vision 2020 Deutsche Bank German, Swiss & Austrian Conference Berlin, June 17, 2015 © Siemens AG 2015
Slide 2: Notes and forward-looking statements
Notes and forward forward-looking looking statements This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “exp
Slide 3: Siemens Vision 2020
Siemens Vision 2020 Value creation and cultural change Value Scale up Strengthen core Drive performance Foster ownership culture and leadership based on common values 2015 2016 2017 2018 2019 2020 Strategic Operational Accelerated growth direction consolidation Optimization and outperformance © Siem
Slide 4: Siemens leverages digitalization technologies to create new business opportunities
Siemens leverages digitalization technologies to create new business opportunities Major digitalization … leveraged along … to create attractive technologies … our entire portfolio … business opportunities Digitalization Vertical Digital software services Mobile and collaboration €2.4bn Revenue FY 2
Slide 5: Executing Vision 2020
Executing Vision 2020 Capital allocation along strategic imperatives Healthcare IT Aero-derivative Divestment to Cerner for US$1.3bn gas turbines and compressors Microbiology £785m purchase price Divestment Di t t to t Beckman B k Coulter C lt ffor 'Siemens – Vision 2020' US$ ~450m and £200m for exc
Slide 6: Fixing remaining underperforming businesses is key priority – other options remain
Fixing remaining underperforming businesses is key priority – other options remain Revenue FY 2013 in €bn ~21 ~1.9 Water ~0.9 HC IT ~1.0 ~1.8 Metals ~2.8 Extended Spectrum LV ~2.0 • Footprint optimization ~15 • Reverse integration ~0.7 Postal • Partnering and • Tight Ti ht Managing M i Baggage Handl
Slide 7: Our target to reduce complexity and achieve cost reduction of ~€1bn is on track
Our target to reduce complexity and achieve cost reduction of ~€1bn €1bn is on track Current status of functional cost reduction Target for Current status Cumulated effects of savings functional €1bn of saving potential are backed with cost reduction concrete measures €1bn €700m – • Significant savi
Slide 8: Outlook Fiscal 2015 confirmed despite weakening indicators
Outlook Fiscal 2015 confirmed despite weakening indicators Basic earnings per share (Net income) In € At least 15% • We believe that our business environment will growth be complex in fiscal 2015, among other things due to geopolitical tensions. • We expect revenue on an organic basis to 6.55 6.37 r
Slide 9: Appendix
Appendix © Siemens AG 2015 Page 9 Berlin, June 17, 2015 DB German, Swiss & Austrian Conference
Slide 10: One Siemens Financial Framework – Clear targets to measure success & accountability
One Siemens Financial Framework – Clear targets to measure success & accountability One Siemens Financial Framework Siemens Capital efficiency Capital structure Growth: (ROCE2)) (Industrial net debt/EBITDA) Siemens > most 15-20% up to 1.0x relevant competitors1) (Comparable revenue growth) Total cos
Slide 11: Financial Cockpit
Financial Cockpit Orders Revenue Profit Industrial Business (IB) Net Income in €bn +7% Comp. 0% in €bn in €bn (+16%) (nom.) (+8%) -5% +239% 20.8 17.9 16.7 18.0 1.7 1.7 3.9 10.3% 9.0% 1.2 B-t-B 1.07 1.15 Margin 9.6% Q2 14 Q2 15 Q2 14 Q2 15 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 EPS (“all-in”) ROCE (“all
Slide 12: PG: Accelerating innovation and productivity actions; WP: Continued operational challenges
PG: Accelerating innovation and productivity actions WP: Continued operational challenges impact margin Power and Gas (PG) Wind Power and Renewables (WP) Orders Revenue Orders Revenue €bn €bn +4%1) -6%1) -27%1)) -1%1)) 2.7 3.1 2.9 3.0 1.7 1.4 1.2 1.3 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 F
Slide 13: EM: Progress in execution of legacy projects; BT: Productivity push
EM: Progress in execution of legacy projects BT: Productivity push to mitigate CHF strength Energy Management (EM) Building Technologies (BT) Orders Revenue Orders Revenue €bn €bn +2%1) +4%1) +1%1)) +1%1)) 2.8 3.1 2.5 2.8 1.3 1.5 1.3 1.4 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2 FY 14
Slide 14: DF: Temporarily softer and stronger outlook; PD: Commodity related weakness
DF: Temporarily softer and stronger outlook PD: Commodity related weakness weighs on margin Digital Factory (DF) Process Industries and Drives (PD) Orders Revenue Orders Revenue €bn €bn +1%1) +2%1) -13%1) -5%1) 2.4 2.6 2.2 2.4 2.7 2.4 2.3 2.3 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2
Slide 15: MO: Stringent project execution; HC: Higher growth and solid margin
MO: Stringent project execution HC: Higher growth and solid margin Mobility (MO) Healthcare (HC) Orders Revenue Orders Revenue €bn €bn +95%1) +4%1) +3%1) +2% 2%1) 3.8 2.8 3.2 2.9 3.2 1.8 1.7 1.8 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Q2 FY 14 Q2 FY 15 Profit & Margin Profit & Margin €
Slide 16: Below Industrial Business materially benefitting from disposal gains
Below Industrial Business materially benefitting from disposal gains Below Industrial Business (Q2 FY 2015) in €m Therein: Expectations for H2 FY 2015 3.908 ~€1.6bn • SFS: H2 in line with prior year Audiology gain €0.2bn ~€0.2bn • CMPA: 1.172 38 Healthcare IT gain • B/S/H closed, no further equity i
Slide 17: Clear progress in executing legacy projects – reduced project charges
Clear progress in executing legacy projects – reduced project charges on better backlog quality Order backlog revenue recognition Progress in project execution in €bn (Industrial Business) • Implementation of “corporate memory” supports improvement in backlog quality 109 and risk mitigation g €100b
Slide 18: Successful US$7.75bn transaction completed; strong balance sheet
Successful US$7.75bn transaction completed Strong balance sheet & well balanced maturity profile B l Balanced d Maturity M t it Profile P fil 1) T Transaction ti details d t il (US$) €bn 5.0 • 1.25bn, 3 year fixed at 1.45% • 0.5bn, 3 year floating at LIBOR + 28bps • 1.0bn, 5 year fixed at 2.15% 3.7
Slide 19: Oil & Gas exposure still limited - Secondary impact could be higher
Oil & Gas exposure still limited - ”Secondary impact” could be higher Direct Oil & Gas exposure Exposure along value chain (Estimate in % of FY 2014 orders incl. Rolls-Royce pro forma) Upstream Midstream Downstream ~40% ~25% ~35% PG: <5% New Unit & Aftermarket & ~8% % PD: 2.5% S l ti Solutions S Ser
Slide 20: Installed base secures recurring service revenues with robust after sales margin
Installed base secures recurring service revenues with robust after sales margin Combined serviceable fleet ((small turbines and compressors) p ) Small/medium Aero-derivative Steam Compressors gas turbines gas turbines turbines 2,500 1,600 1 500 1,500 62 000 62,000 32 500 32,500 2,250 10,000 10,000
Slide 21: Financial calendar
Financial calendar June June 17, 2015 Deutsche Bank German, Swiss & Austrian Conference (Berlin) July July 30, 2015 Q3 E Earnings i R Release l and dAAnalyst l tC Callll August © Siemens AG 2015 Page 21 Berlin, June 17, 2015 DB German, Swiss & Austrian Conference
Slide 22: Siemens Investor Relations contacts
Siemens Investor Relations contacts Investor Relations Internet: www.siemens.com/investorrelations Email: [email protected] IR- +49 89 636 636-32474 32474 Hotline: Fax: +49 89 636-32830 © Siemens AG 2015 Page 22 Berlin, June 17, 2015 DB German, Swiss & Austrian Conference
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