Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — JPM European Capital Goods CEO Conference 2018
32 slides from Siemens Aktiengesellschaft's conference presentation, Jun 15, 2018
Slide 1: Investments in digital industry making an impact
Investments in digital industry making an impact Ralf P. Thomas, CFO JPM European Capital Goods CEO Conference London, June 15, 2018 Unrestricted © Siemens AG siemens.com
Slide 2: Notes and forward-looking statements
Notes and forward-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 “expect,” “look forw
Slide 3: Strong performance across all divisions except PG
Strong performance across all divisions except PG In €bn Q2 FY18 Q2 FY17 Δ y-o-y Δ y-o-y ex. PG Orders 22.3 22.7 -1% comp. flat comp. Revenue 20.1 20.1 flat comp. +6% comp. IB Profit 2.3 11.0% 2.5 12.0% -100bps +80bps1) Net Income 2.0 1.5 +39% EPS (in €) 2.39 1.75 +36% 1) Q2 FY17 excl. positive one-
Slide 4: Siemens portfolio in strong shape
Siemens portfolio in strong shape Structural challenges in Power and Gas Revenue (IB) H1 FY 2018 Profit margin H1 FY 2018 PD DF DF 20.5% 10% SHS 16.7% 15% PG EM 7.7% 15% H1 2018 16% SHS MO 10.7% % of IB 11% BT 10.3% SGRE 14% SGRE 5.2% 8% 11% PD 7.0% BT EM MO PG 5.8% Most divisions with excellent per
Slide 5: Breakthrough in restructuring achieved
Breakthrough in restructuring achieved Framework agreement for restructuring Future pact to shape structural transformation Covers German PG and PD sites Structural challenges across certain markets Cost reduction targets retained Opportunities from digitalization Job cuts unavoidable Re
Slide 6: Consistent market share gains – M&A strategy pays off
Digital Factory leads the way in Digital Enterprise Consistent market share gains – M&A strategy pays off Revenue growth yoy +14 ppt. +7 ppt. +10 ppt. 20% 18% +5 ppt. +4 ppt. 17% 13% 13% 11% 9% +1 ppt. 8% 7% 6% 4% 3% Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 DF competitor basket nominal Siemen
Slide 7: Mentor – more than a great asset
Mentor – more than a great asset Strong market Excellent fit Profitable growth Electronic Design Automation market DF Software Revenue €bn €bn CAGR: 10-15% ~+7% ~3.4 ~8.9 ~8.4 ~2.6 2017 2018e 2019e 2020e FY17 FY18e FY19e FY20e Key growth drivers: Broadest software portfolio with On track to ac
Slide 8: SGRE with significant customer wins
SGRE with significant customer wins Stringent execution of roadmap continues Performance highlights Strong share price performance >84GW installed based % Closing: Order intake of €10bn in last 12 months €13.27 130 Q2 with strong book-to-bill of 1.4x 120 Preferred supplier of largest offshor
Slide 9: Successful IPO of Siemens Healthineers unlocks value potential
Successful IPO of Siemens Healthineers unlocks value potential Siemens Healthineers (SHS) Strong share price performance % Closing: 130 €35.50 120 +27% Issue price: 110 €28.00 100 90 80 16-Mar 15-Mar 29-Mar 12-Apr 26-Apr 10-May 24-May 6-Jun Siemens Healthineers TecDAX 15% share floated at placemen
Slide 10: Guidance FY 18 raised
Guidance FY 18 raised Earnings per share (in €) Guidance update We continue to expect geopolitical uncertainties such as trade mid-point restrictions that may affect investment sentiment. +5% Following the strong results achieved in the first half of fiscal 8.00 2018, we raise our outlook for basic
Slide 11: FY 2018 – Delivering results and setting direction for next level
Siemens Vision 2020 execution well advanced FY 2018 – Delivering results and setting direction for next level Value “Vision 2020+” Scale up • Customer and market focus • Digitalization at work Strengthen core • Innovation push • SGRE - Execution of L3AD2020 • Healthcare IPO • Setting up Siemens Alst
Slide 12: Appendix
Appendix Unrestricted © Siemens AG 2018 Page 12 London, June 15, 2018 JP Morgan European Capital Goods CEO Conference
Slide 13: One Siemens Financial Framework
One Siemens Financial Framework Clear targets to measure success and accountability One Siemens Financial Framework Siemens Growth: Capital efficiency Capital structure Siemens > most (ROCE2)) (Industrial net debt/EBITDA) relevant competitors1) 15 – 20% up to 1.0x (Comparable revenue growth) Total c
Slide 14: Siemens Vision 2020 - Execution well underway
Siemens Vision 2020 - Execution well underway, most targets already achieved by FY 2017 GOAL INTENT KPI Implement stringent company gover- Live lean governance and 1 nance with effective support functions drive continuous optimization €1bn cost savings by FY 2016 achieved Strengthen Sharpen our busi
Slide 15: PG: Solid service business
PG: Solid service business Contracting markets require further rightsizing of capacities Power and Gas (PG) Orders Revenue Business Mix (Revenue) €bn Compression Solution Service -7%1) -21%1) Steam H1 2018 H1 2018 3.8 4.1 Large Gas 3.2 2.9 (Large & % of total % of total Small) Q2 FY 17 Q2 FY 18 Q2 F
Slide 16: PG: Industry overcapacities creating pricing pressure
PG: Industry overcapacities creating pricing pressure in all product lines – PG with market share gains Large Gas Turbines Small/Medium/Aero GT Compression # of Units (Market) # of Units (Market) Adressed market in € New units rotating equipment ~-45% -34% Industrial: Down ~-30% 186 Oil & Gas: Up 72
Slide 17: PG: Increasing and resilient Services backlog
PG: Our increasing and resilient Services backlog is complemented by technology infusion Services with an increasing backlog … … a resilient regional mix €bn Gas turbine utilization (in %) + YoY change 0% +4% +1% -2% + Trend 31 Middle East FlexLTP 6 LAM Asia Europe, CIS 2013 2014 2015 2016 2
Slide 18: PG: Customer proximity and innovation key drivers for success
PG: Customer proximity and innovation key drivers for success First H-Class for China mainland Integrated solution for FPSO vessel Significant invest in 3D-Printing Two H-Class gas turbines for Six aeroderivative Gas €30m invest in Materials customer Huadian Fuxin Turbine packages for Solution
Slide 19: PG: Savings delivered at different speeds by country
PG: Savings are delivered at different speeds dependent on country – material impact on bottom line expected in FY 2020 Share of 6,100 announced job reductions Status and expected financial impact Significantly lower FY 18 revenue vs. FY 17 RoW Ramp up of savings: US – implementation well on tra
Slide 20: DF and PD: Digital Factory and Process Industries and Drives
DF: World-class Digital Enterprise winning market share PD: Implementation of turnaround measures well underway Digital Factory (DF) Process Industries and Drives (PD) Orders Revenue Orders Revenue €bn €bn +11%1) +13%1) +6%1) +1%1) 2.9 3.4 2.7 3.3 2.3 2.3 2.2 2.1 Q2 FY 17 Q2 FY 18 Q2 FY 17 Q2 FY 18
Slide 21: Digital Enterprise – implement now!
Hanover Fair 2018 Digital Enterprise – implement now! Digital solutions can be deployed end-to-end in every industry and in companies of all sizes | ~7,400 Leads Rapidly growing MindSphere ecosystem > 40 Partners | ~140 Applications | 20 MAC’s Broad Cybersecurity and seamlessly integrated Additive M
Slide 22: Invest in cloud-based business models
Invest in cloud-based business models will be overcompensated by strong execution of traditional software business Software business within Digital Factory MindSphere Revenue (in €bn) • Current 'Platform as a Service' business plan with focus on CAGR: 10-15% partners in industrial IoT market ~3.4 •
Slide 23: BT: Great performance – operational margin expansion
EM: Broad based improvement confirms positive trajectory BT: Great performance – operational margin expansion Energy Management (EM) Building Technologies (BT) Orders Revenue Orders Revenue €bn €bn -14%1) +6%1) +5%1) +8%1) 3.6 2.8 3.0 3.0 1.8 1.8 1.6 1.6 Q2 FY 17 Q2 FY 18 Q2 FY 17 Q2 FY 18 Q2 FY 17
Slide 24: MO: Excellent growth and industry leading margins
MO: Excellent growth and industry leading margins Mobility (MO) Profit margin Orders Revenue Profit in €m €bn 9.2% 10.7% +17%1) +9%1) 7.8% 8.7% 7.3% 2.1 2.4 2.0 2.1 -4.0% 747 532 588 678 459 Q2 FY 17 Q2 FY 18 Q2 FY 17 Q2 FY 18 -232 FY 13 FY 14 FY 15 FY 16 FY 17 H1 18 Profit Profit margin Pension eff
Slide 25: SGRE – Stringent execution of roadmap continues
SGRE – Stringent execution of roadmap continues Siemens Gamesa Renewable Energy (SGRE) Orders Revenue Clear roadmap with L3AD2020 program €bn Global #1 with 8.8 GW of new capacity in 2017 -32%1) ahead of competition -9%1) 3.1 3.0 2.2 SGRE clear # 1 in Offshore & # 2 in Onshore 1.5 SGRE marke
Slide 26: Q2 FY18 Profit Bridge from SGRE disclosure to SAG disclosure
Q2 FY18 Profit Bridge from SGRE disclosure to SAG disclosure Different profit definitions at SGRE and SAG to be considered in models in €m disclosure (as of May 4, 2018) disclosure (as of May 9, 2018) 8.4% 189 7.7% 172 -61 75 5.2% 55 -4 -7 117 2.4% 61 54 EBIT Integration & PPA effects EBIT Integrati
Slide 27: Q2 performance aligned with FY18 guidance
Q2 18 performance aligned with FY18 guidance Unrestricted © Siemens AG 2018 Page 27 London, June 15, 2018 JP Morgan European Capital Goods CEO Conference
Slide 28: SGRE has set clear profitable growth targets for 2020
SGRE has set clear profitable growth targets for 2020 Top line growth: faster than the market in MW and EUR 8-10 % EBIT margin excl. PPA, integration and restructuring costs CAPEX < 5% of sales Positive cash flow generation every year 8-10% ROCE: enhance capital efficiency 25 % of net income as divi
Slide 29: Q2 FY18 Profit Bridge from Siemens Healthineers disclosure
Q2 FY18 Profit Bridge from Siemens Healthineers disclosure to SAG disclosure Different profit definitions at Siemens Healthineers and SAG to be considered in models in €m disclosure (as of May 3, 2018) disclosure (as of May 9, 2018) €73 million IPO costs 17.4% were deducted 17.0% 560 from equity 16.
Slide 30: Siemens Healthineers FY 2018 Guidance reaffirmed
Siemens Healthineers FY 2018 Guidance reaffirmed FY2017 (IFRS 15) FY2018E Comments on FY2018E Revenue (€m) 13,677 • Comparable revenue growth on a q-o-q basis can fluctuate significantly • Significant FX headwinds in FY2018E expected resulting in slightly Comparable growth (%) 3.8%1) 3-4% decreasing
Slide 31: Clear agenda to drive earnings growth – mid-term goals
Siemens Healthineers Clear agenda to drive earnings growth – mid-term goals Mid-term comp. revenue growth target Mid-term profitability1) targets • Imaging: Further expanding market and innovation leadership Top line • Diagnostics: Fully capitalizing on Atellica 20-22% 20-22% 4-6% growth over time 1
Slide 32: Financial calendar
Financial calendar June 15, 2018 June JP Morgan Conference (London) August 2, 2018 August Q3 Earnings Release Unrestricted © Siemens AG 2018 Page 32 London, June 15, 2018 JP Morgan European Capital Goods CEO Conference
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