Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Q3 FY2019 Earnings Presentation
23 slides from Siemens Aktiengesellschaft's earnings presentation, Aug 1, 2019
Slide 1: Siemens continues to grow despite significant headwinds in key markets
Siemens continues to grow despite significant headwinds in key markets Roland Busch, COO and CTO Siemens AG Klaus Helmrich, CEO Siemens Digital Industries Ralf P. Thomas, CFO Siemens AG Analyst Call, August 1, 2019 Unrestricted © Siemens 2019 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: Leading technologies as foundation for future success
Leading technologies as foundation for future success Advance digital manufacturing Future pact for Goerlitz Siemens IoT Platform • Competitive technology stack • Domain know how & customer proximity • High volume industrial apps • Powerful ecosystem Additive Innovation campus & Ready manufacturing
Slide 4: Substantial customer wins in challenging market environment
Net Promoter Score up by 11% Substantial customer wins in challenging market environment Q3 FY 19 - Order highlights MO – Russia SGRE – Taiwan GP – Iraq 13 High-speed trains Two offshore projects Maisan power plant €1.2bn €2.3bn €0.2bn Note: Net Promoter Score compared to baseline FY 2017 Unrestrict
Slide 5: Digital Industries (DI): Short cycle impacted by macro headwind
Digital Industries (DI) Short cycle impacted by macro headwind Orders Revenue €bn Discrete Automation -5%¹) -2%¹) orders clearly weaker, 3.9 3.7 3.9 3.9 Software and Process 0.9 1.0 continue to grow 3.0 2.9 Q3 18 Q3 19 Q3 18 Q3 19 Margin impacted by volume, unfavorable mix, Adj. EBITA Margin Free Ca
Slide 6: Moderation predominantly in high margin discrete automation businesses
Moderation predominantly in high margin discrete automation businesses, counter measures identified to adjust cost base Vertical end markets (share of DI revenue) Q3 FY 2019 - Key regions Automation (excl. Software) Q3 Trend next 3-4 quarters ~20% Automotive Orders -5% | Revenue +9% Strong Process A
Slide 7: Smart Infrastructure (SI): Softer performance with ongoing innovation invest
Smart Infrastructure (SI) Softer performance with ongoing innovation invest Orders Revenue Solid solution and service €bn +2%¹) +2%¹) business; 3.8 4.0 3.6 3.7 product business 1.4 1.4 challenging 2.2 2.3 Q3 18 Q3 19 Q3 18 Q3 19 Invest in building and grid IoT Adj. EBITA Margin Free Cash Flow €m 10-
Slide 8: Gas and Power (GP): Spinoff preparation on track
Gas and Power (GP) Spinoff preparation on track Orders Revenue €bn -15%¹) -5%¹) Lower volume from large 4.7 4.4 4.1 4.3 orders 1.9 2.0 2.5 2.3 Q3 18 Q3 19 Q3 18 Q3 19 Lower revenue in solution, Adj. EBITA Margin Free Cash Flow stable service €m 8-12% 66 -190bps Measures initiated to 6.1% 3.9% 0.27 -
Slide 9: Mobility (MO): Sustainable industry margin leadership
Mobility (MO) Sustainable industry margin leadership Orders Revenue €bn Continuously strong order +18%¹) -2%¹) momentum, 3.0 2.5 2.1 2.1 healthy backlog €33bn Q3 18 Q3 19 Q3 18 Q3 19 Sustainable margin performance for 23 Adj. EBITA Margin Free Cash Flow quarters in a row €m +140bps 9-12% 361 1.87 9.
Slide 10: Performance of listed Strategic Companies
Performance of listed Strategic Companies Orders Revenue Orders Revenue €bn €bn +42%¹) +13%¹) +6%¹) +24%¹) 4.1 4.7 3.5 3.6 2.6 3.3 3.3 2.1 Q3 18 Q3 19 Q3 18 Q3 19 Q3 18 Q3 19 Q3 18 Q3 19 Adj. EBITA Margin Free Cash Flow Adj. EBITA Margin Free Cash Flow €m €m 17-21% 7-11% -22% -40bps 483 -130bps 377
Slide 11: Below Industrial Business performance
Below Industrial Business performance €m 137 -14 68 -284 1,935 -288 -402 -17 therein: 1,134 3 1,137 -€61m Pensions -€223m Corp. Items Tax Rate Minorities @ 26.2% -€105m 1,032 IB SFS POC SRE Corp. Items, PPA Elim., Corp. Tax Inc. Cont. Disc. Ops. Net Income Pensions Treasury, Ops Others Unrestricted
Slide 12: Outlook FY 2019 confirmed
Outlook FY 2019 confirmed The favorable market environment for our short cycle businesses, which was a material basis for our outlook, has 7.88 significantly deteriorated in the second half of the fiscal year. 0.76 severance Mid point growth Nevertheless, we confirm our financial expectations for fi
Slide 13: Appendix
Appendix Unrestricted © Siemens 2019 Page 13 August 1, 2019 Q3 FY 2019 Analyst Call
Slide 14: Q3 FY 2019 – Financial performance
Q3 FY 2019 – Financial performance Orders Revenue IB Adj. EBITA margin excl. severance +6% +2% 9.9% EPS excl. severance IB Cash conversion Indust. ND/EBITDA €1.37 0.51 1.2x Orders and Revenue growth comparable Unrestricted © Siemens 2019 Page 14 August 1, 2019 Q3 FY 2019 Analyst Call
Slide 15: Q3 FY 2019 – Net debt bridge
Q3 FY 2019 – Net debt bridge Ind. Net Debt/ EBITDA (c/o) in €bn Operating Activities 1.2x (Q2 FY19: 1.1x) 26.3 26.5 11.3 15.3 2.1 -1.0 -1.0 -0.3 Net Debt Cash flows from ∆ Working Capital Cash flows from Financing and Net Debt Net Debt adjustments Ind. Net Debt operating activities investing activit
Slide 16: Provisions slightly increased in Q3 due to lower discount rate
Provisions slightly increased in Q3 due to lower discount rate, nearly offset by positive asset performance Q3 FY 2019 – Pensions and similar obligations in €bn¹ FY 2016 FY 2017 FY 2018 Q1 FY 2019 Q2 FY 2019 Q3 FY 2019 Defined benefit obligation (DBO)² -42.2 -36.9 -35.9 -36.4 -38.4 -39.0 Fair value
Slide 17: Q3 FY19 Profit Bridge from SHS disclosure to SAG disclosure
Q3 FY19 Profit Bridge from SHS disclosure to SAG disclosure Different profit definitions at SHS and SAG to be considered in models in €m disclosure (as of July 29, 2019) disclosure (as of August 1, 2019) 15.2% 15.6% 14.8% 15.2% 558 543 543 15 -15 529 14 Profit Severance Profit Consolidation Adj. EBI
Slide 18: Outlook – full year guidance confirmed
Outlook – full year guidance confirmed As disclosed on July 29, 2019 1) Y-o-y on a comparable basis, excluding translation and portfolio effects 2) Adjusted for severance charges, in fiscal year 2018 additionally for IPO costs 3) The outlook assumes that current foreign exchange rates persist for al
Slide 19: Q3 FY19 Profit Bridge from SGRE to SAG disclosure
Q3 FY19 Profit Bridge from SGRE to SAG disclosure Different profit definitions at SGRE and SAG to be considered in models in €m disclosure (as of July 30, 2019) disclosure (as of August 1, 2019) 6.1% 159 4.1% 4.3% -36 -14 109 112 2.1% 0 3 -67 67 56 EBIT Integration & PPA effects EBIT PPA effects Fin
Slide 20: As disclosed on July 30, 2019
As disclosed on July 30, 2019 9M 19 performance in line with FY 19 guidance range; Q3 19 results impacted by emerging market volatility and Onshore execution challenges ........................................ FY 19 guidance range confirmed, with current expectations being in the first half of guida
Slide 21: Siemens Financial Framework
Siemens Financial Framework Siemens (targets over the cycle) Growth Siemens Cash conversion (CCR) comparable revenue growth Industrial Businesses margin3) FCF IB / Adj. EBITA IB 4 – 5% 11 – 15% CCR = 1 – comp. growth rate Capital efficiency Capital structure Dividend payout ratio ROCE1) Industrial n
Slide 22: Financial calendar
Financial calendar September September 5, 2019 2019 Morgan Stanley Conference (London) November 7, 2019 Q4 Earnings Release November 7 - 8, 2019 Roadshow London October / November 12, 2019 November Roadshow Frankfurt 2019 November 13, 2019 Roadshow Paris November 12 - 13, 2019 Roadshow New York, Bos
Slide 23: Investor Relations contacts
Investor Relations contacts Investor Relations Internet: www.siemens.com/investorrelations E-Mail: [email protected] Telefon: +49 89 636-32474 Fax: +49 89 636-1332474 Unrestricted © Siemens 2019 Page 23 August 1, 2019 Q3 FY 2019 Analyst Call