Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Q3 FY2016 Earnings Presentation

19 slides from Siemens Aktiengesellschaft's earnings presentation, Aug 4, 2016

  1. Slide 1: Strong execution drives growth and profitability – earnings outlook raised

    Strong execution drives growth and profitability – earnings outlook raised Joe Kaeser, President and CEO | Ralf P. Thomas, CFO Q3 FY 2016 Analyst Call | Munich, August 4, 2016 Unrestricted © Siemens AG 2016 siemens.com

  2. 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

  3. Slide 3: Q3 FY 2016 – Strong momentum despite continuing market uncertainty

    Q3 FY 2016 – Strong momentum despite continuing market uncertainty • Further portfolio optimization and cost savings acceleration • Clear order increase excl. FX of 10% to €21.1bn • All-time high backlog of €116bn, book-to-bill at 1.06x • Clear revenue growth excl. FX of +9% to €19.8bn • Industrial

  4. Slide 4: PG: Top line growth driven by strong execution; WP: Excellent team drives turnaround

    PG: Top line growth driven by strong execution in the market place WP: Excellent team drives impressive turnaround on all levels Power and Gas (PG) Wind Power and Renewables (WP) Orders Revenue Orders Revenue €bn €bn +23%1) +22%1) +342%1) +30%1) 3.6 4.5 4.3 3.3 2.7 0.7 1.4 1.7 Q3 FY 15 Q3 FY 16 Q3 F

  5. Slide 5: EM: Target margin corridor reached; BT: All eyes on the market

    EM: Target margin corridor reached – poised to stay in BT: All eyes on the market with a clear vision for future value creation Energy Management (EM) Building Technologies (BT) Orders Revenue Orders Revenue €bn €bn -6%1) +2%1) +10%1) +5%1) 3.5 3.1 3.0 2.9 1.5 1.7 1.5 1.5 Q3 FY 15 Q3 FY 16 Q3 FY 15

  6. Slide 6: DF: Strong top line driven by digital software; PD: Challenges need response

    DF: Strong top line relative to market driven by digital software PD: Cyclical and structural challenges need appropriate response Digital Factory (DF) Process Industries and Drives (PD) Orders Revenue Orders Revenue €bn €bn +1%1) +2%1) -3%1) -3%1) 2.6 2.6 2.5 2.5 2.2 2.1 2.4 2.2 Q3 FY 15 Q3 FY 16 Q

  7. Slide 7: MO: Great execution drives margins; HC: Continued growth

    MO: Great execution drives industry leading margins HC: Continued growth – innovation push curbs margins Mobility (MO) Healthineers (HC) Orders Revenue Orders Revenue €bn €bn +5%1) +2%1) -59%1) +2%1) 2.8 3.3 3.4 3.2 3.2 1.1 1.8 1.8 Q3 FY 15 Q3 FY 16 Q3 FY 15 Q3 FY 16 Q3 FY 15 Q3 FY 16 Q3 FY 15 Q3 FY

  8. Slide 8: Guidance FY 2016 – earnings outlook raised

    Guidance FY 2016 – earnings outlook raised We raise our previous expectation for basic EPS from net income in the range of €6.00 to €6.40 to the range of €6.50 to €6.70. We continue to expect for fiscal 2016 moderate revenue growth, net of effects from currency translation. We continue to anticipate

  9. Slide 9: Appendix

    Appendix Unrestricted © Siemens AG 2016 Page 9 Munich, August 4, 2016 Q3 FY 2016 Analyst Call

  10. Slide 10: Siemens Vision 2020 – Stringent execution delivers results

    Siemens Vision 2020 – Stringent execution delivers results Value Scale up • Innovation initiative • Customer and market focus • Digitalization at work Strengthen core • Stringent capital allocation Drive performance • Cost reduction support functions (€1bn) • Global footprint optimization • Fix unde

  11. Slide 11: Executing Vision 2020 Capital allocation along strategic imperatives

    Executing Vision 2020 Capital allocation along strategic imperatives April 16 1| Areas of growth? January 16 Closing of acquisition of CD-adapco for 2| Potential profit pool? Closing of divestment to AtoS $970m to pursue industrial software strategy 3| Why Siemens? January 16 Merger of Siemens Wind

  12. Slide 12: 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

  13. Slide 13: Financial Cockpit – Q3 FY 2016

    Financial Cockpit – Q3 FY 2016 Orders Revenue Profit Industrial Business (IB) Net Income in €bn +9% Comp. +7% in €bn in €bn (+6%) (nom.) (+5%) +20% 0% 21.1 2.2 19.9 18.8 19.8 1.8 1.4 1.4 10.4% 11.2% B-t-B 1.05 1.06 Margin 10.8% 9.5% Q3 15 Q3 16 Q3 15 Q3 16 Q3 FY 15 Q3 FY 16 Q3 FY 15 Q3 FY 16 EPS (“a

  14. Slide 14: Further acceleration of cost-out program

    Further acceleration of cost-out program Cumulated effects of savings €950m – €850m – €1,000m €800m – €950m €900m €400m View as of Q3 FY 16 View as of Q2 FY 16 View as of Q4 FY 15 FY 2015 FY 2016e Unrestricted © Siemens AG 2016 Page 14 Munich, August 4, 2016 Q3 FY 2016 Analyst Call

  15. Slide 15: Net Debt Bridge – Q3 FY 2016

    Net Debt Bridge – Q3 FY 2016 €bn Q3 ΔQ2 Operating Activities • SFS Debt +21.1 -0.3 • Post emp. Benefits -13.5 -1.9 • Credit guarantees -0.8 -0.0 Adj. ind. Net Debt/ • Hybrid bond +0.9 -0.0 EBITDA (c/o) • Fair value adj. +0.7 -0.1 1.2x (Q2 FY16: 1.1x) (hedge accounting) therein: therein a.o.: • Δ Inv

  16. Slide 16: SFS Key Figures – Q3 FY 2016

    SFS Key Figures – Q3 FY 2016 Key Financial Data SFS • Assets €25.1bn • Income before income taxes €139m • Return on Equity after taxes 17.4% • Operating and Investing Cash Flow €517m Assets Liabilities and Equity €bn €bn 1.5 0.2 25.1 25.1 2.5 1.4 22.1 21.1 1.5 Leases & Equity Other Assets Cash Total

  17. Slide 17: Underfunding for Siemens’ pension plans increased to -€12.7bn

    Underfunding for Siemens’ pension plans increased to -€12.7bn in Q3 FY 2016 Funded status for Siemens’ pension plans increased in Q3, mainly due to ongoing decreased discount rate assumption Q1 Q2 Q3 in €bn1) FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2016 Defined benefit obligation (DBO) on pension

  18. Slide 18: Financial calendar

    Financial calendar August 4, 2016 August Q3-Earnings Release September 9, 2016 Morgan Stanley Conference (London) September September 19, 2016 Goldman Sachs/Berenberg Conference (Munich) Unrestricted © Siemens AG 2016 Page 18 Munich, August 4, 2016 Q3 FY 2016 Analyst Call

  19. Slide 19: Investor Relations

    Siemens Investor Relations contacts Investor Relations Internet: www.siemens.com/investorrelations Email: [email protected] IR-Hotline: +49 89 636-32474 Fax: +49 89 636-32830 Unrestricted © Siemens AG 2016 Page 19 Munich, August 4, 2016 Q3 FY 2016 Analyst Call

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