Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2021)
71 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 24, 2021
Slide 1: Digital Industries
Digital Industries Cedrik Neike, CEO Tony Hemmelgarn, CEO DI Software Rudolf Basson, CFO Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 2: Notes and forward-looking statements
Notes and forward-looking statements This document contains statements related to our future business and incorrect, actual results, performance or achievements of Siemens financial performance and future events or developments involving may (negatively or positively) vary materially from those desc
Slide 3: Huge potential in digitalization and automation
Huge potential in digitalization and automation – this is our decade of opportunities Page 3 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 4: The Digital Enterprise portfolio integrates the complete lifecycle
Cloud Digital Services Process Control Controllers The Digital Enterprise Industrial Communications portfolio integrates the Edge complete lifecycle Security Motion Control of product and production Automation Engineering Motors and Drives Design and Simulation Page 4 Unrestricted | © Siemens 2021 |
Slide 5: The Digital Enterprise portfolio integrates the complete lifecycle
Design Software Simulation Software Automation Engineering Motion Control Motors and Drives Controller The Digital Enterprise Industrial Communication portfolio integrates the complete lifecycle Digital Services of product and production Page 5 Unrestricted | © Siemens 2021 | Capital Market Day | 20
Slide 6: Our offering helps our customers to innovate and compete
App Development Our offering helps Cloud our customers to innovate and compete Manufacturing Execution System from sensor to edge Edge Computing to cloud Controller Field devices/sensors/motors/drives Page 6 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 7: Customer trust and loyalty results in various #1 and #2 positions
Customer trust and loyalty is resulting in various #1 and #2 positions Industrial Software Automation PLC #1 Process Chemicals Industrial Communication #2 Automation Pharma Motion Control Discrete Automation Page 7 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 8: Four growth levers to extend our leadership
Based on our strong market positions, we will extend our leadership through four growth levers Industrial Communication Chemicals Automation Industrial Motion Software #1 Control Discrete Automation #2 PLC Process Pharma Automation Page 8 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-
Slide 9: Digital Industries key figures
Digital Industries Key figures FY 20 €15.9bn €15.0bn 16.6% ~72,000 without Bentley, with Bentley 21.7% Orders Revenue Profit margin Employees Page 9 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 10: Digital Industries Portfolio
Digital Industries Portfolio 28% 65% • Product Lifecycle Management • Automation products • Drives and motors • Automation systems and • Electronic Design Automation • Engineering and • Machine tool systems software for process industries • Manufacturing operations SCADA software • Additive manufact
Slide 11: Balanced global footprint: software headquarters in the USA
We have a balanced global footprint close to our customers Global headquarters for software in the USA 2.4 15% 20% 4 Revenue of total of total R&D Production in bn € employees headcount facilities Note: Numbers FY 20 Page 11 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 12: Balanced global footprint: standard motors in China
We have a balanced global footprint close to our customers Global headquarters for standard motors in China 4.6 24% 24% 7 Revenue of total of total R&D Production in bn € employees headcount facilities Note: Numbers FY 20 Page 12 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 13: Balanced global footprint: automation in Germany
We have a balanced global footprint close to our customers Global headquarters for automation in Germany 7.3 61% 56% 21 Revenue of total of total R&D Production in bn € employees headcount facilities Note: Numbers FY 20 1 Commonwealth of Independent States Page 13 Unrestricted | © Siemens 2021 | Cap
Slide 14: Revenue split FY 20
Revenue split FY 20 – in percent - €15.0bn therein Solution 32% 5% ~20% Asia, Australia Automotive 7% therein Service China 20% ~30% Others Geographical Business mix Vertical mix mix ~15% ~5% Machine Aerospace tools and defense ~10% ~10% 17% 28% Electronics and Pharma and Americas 51% Software semic
Slide 15: Market split: business mix
Market split Business mix – in billion € Trends 159 CAGR +6% Industrial 119 Software CAGR ~+8% 37 Discrete automation CAGR ~+6% 56 Process automation 26 CAGR ~+4% Source: Siemens common market model based on market analysts data 2020 2025 Page 15 Unrestricted | © Siemens 2021 | Capital Market Day |
Slide 16: Market split: geographical
Market split Geographical – in billion € Trends 159 CAGR +6% Europe, 119 CIS1, MEA CAGR ~+5% 42 Americas CAGR ~+6% 34 43 Asia, Australia CAGR ~+7% Source: Siemens common market model based on market analysts data 1 Commonwealth of Independent States 2020 2025 Page 16 Unrestricted | © Siemens 2021 |
Slide 17: Well prepared to capture attractive growth
We are well prepared to capture attractive growth through increasing digitalization and automation of our industries 11% to 34% 77% +43% today In 3 years 1 CIMdata, 2019 survey Page 17 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 18: Industry faces fast-changing market demands
Industry faces fast-changing market demands – creating value for our customers Page 18 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 19: From smartphones to ventilators in 3 weeks
From zero to cars in 21 months – from smartphones to ventilators in 3 weeks Shift from manufacturing smartphones to manufacturing ventilators • License of Siemens customer Medtronic design for ventilator • Digital twin for manufacturing by Siemens (Teamcenter, NX) Image • Shift to ventilator manufac
Slide 20: We combine the real and the digital worlds
We combine the real and the digital worlds – With our end-to-end capabilities and our domain know-how Real Digital Page 20 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 21: See how our customers use our portfolio
See how our customers use our portfolio Partnership to digitally Most advanced digital Vaccine against Covid enhance existing factory for Motion Control within one year – Mercedes-Benz factories – benefitting from our from development to portfolio´s strength release to production Page 21 Unrestricte
Slide 22: Most advanced digital factory for Motion Control
Most advanced digital factory for MC – benefitting from our portfolio´s strength • Build a new lighthouse factory for Motion Control (MC) to cover the need of the fast growing Chinese market • Show full potential of Siemens’ automation and digitalization capabilities to customers • Plan and optimize
Slide 23: Partnership to digitally enhance Mercedes-Benz factories
Partnership to digitally enhance existing Mercedes-Benz factories • Mercedes-Benz and Siemens to expand the digitalization of sustainable production methods • Partnership to develop innovative solutions for: Image • Digital end-to-end technologies for flexible production • Resource-saving, CO2-neutr
Slide 24: Vaccine against Covid within one year
Vaccine against Covid within one year – from development to release to production • Rapid production of Covid-19 vaccine in large quantities • Paperless documentation of development and production, immediately fulfilling all documentation requirements Image • Accelerated vaccine development and prod
Slide 25: Digital Industries is uniquely positioned
Digital Industries is uniquely positioned – with automation and software driving the digital transformation Customers 1 Partners In industrial software, factory automation 2 and motion control 3 Terabytes/hour M&A executed 4 R&D investment Employees are either in digital jobs or automation engineers
Slide 26: Customer communication via virtual events
We adapted our customer communication to the new 2020 and conditions and we reached 2021 more than 100,000 customers via virtual events in the last 12 months – through new digital formats around the globe. 2020 Page 26 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 27: Strong technology core and cross-business collaboration
Siemens with strong technology core and cross-business collaboration for accelerated customer value Digital Smart Mobility Industries Infrastructure • Connectivity and edge as core offering in our partnership with Volkswagen Cyber Security • Simulation and Digital Twin empowering customer Vingroup t
Slide 28: R&D investment lifting Industry 4.0 to the next level
Complete portfolio Fully-networked, for AM on high-performance data industrial scale transmission In the last fiscal year we invested about €2bn which is more than 13% of our revenue into R&D Solutions, Fully exploit devices the value of and apps The technologies we innovate integrating data IT and
Slide 29: Combining the strength of our ecosystems
SIEMENS LOW-CODE We are combining the Mendix >50% increase in developers1 strength of our ecosystems providing holistic and scalable cloud and edge Industrial solutions for discrete MindSphere Edge SIEMENS SIEMENS IT/OT and process industries INDUSTRIAL IOT >75% increase in partners1 1 Growth since
Slide 30: More than €10 billion invested in software acquisitions
3 We've built an unparalleled portfolio in automation and software over the past 15 years >€10 billion investment in acquisitions of software companies In addition to the companies mentioned in the chart we have more than a dozen small and bolt-on acquisitions 2 Selection of acquisitions 2007 2021 1
Slide 31: Unique digital core for Digital Industries Software
Unique digital core allows Digital Industries Software to transform the business Design, simulation, engineering and manufacturing software Page 31 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 32: Software helps tackle complexity before a factory is built
Software helps tackle complexity in a factory before it is built Page 32 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 33: The factory of the future relies on virtual humans
The factory of the future is going to rely more and more on virtual humans and the real and digital worlds coming together Page 33 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 34: Digital Industries Software's unique advantage drives growth
Digital Industries Software’s unique advantage drives growth Page 34 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 35: Comprehensive Digital Twin
Comprehensive Digital Twin The most complete digital representation of a product or factory Page 35 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 36: Design and manage all data and processes
Design and manage all data and processes Page 36 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 37: Predict performance through simulation software
Predict performance through simulation software Page 37 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 38: Enable comprehensive system design
Enable comprehensive system design with electrical and electronics engineering Page 38 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 39: Connect products, plants and systems with MindSphere
Connect products, plants and systems with MindSphere, the Industrial IoT as a service solution Page 39 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 40: Reducing product development time for all-electric aircraft
Reducing product development time for all-electric composite aircraft • Develop and deliver aircraft with low operating costs, low noise and no CO2 emissions for general aviation • Optimize plane stability while working from home • Leverage a comprehensive digital twin Increased head clearance by 4”
Slide 41: Mendix allows any user to create personalized apps
Mendix allows any user to create personalized apps Page 41 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 42: An open architecture enables interoperability
An open architecture enables interoperability Page 42 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 43: Siemens Software: A growth story
Siemens Software: A growth story +50% €4.1bn #1 Market DI Software business Industrial expansion revenue FY 20 software Page 43 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 44: Increased demand for digital transformation
Increased demand for digital transformation Page 44 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 45: Enabling companies to become Digital Enterprises
Enabling companies to become Digital Enterprises Siemens is the best positioned company in the world to bring together IT and OT Page 45 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 46: Reduced energy usage and improved sustainability
Reduced energy usage and improved sustainability Improve bottling plant efficiency and reduce emergency downtime • Implement an end-to-end solution • Developed MindSphere app for predictive maintenance • Connect machines from sensors to edge to cloud • >4% Reduction in equipment performance loss • E
Slide 47: SaaS connects engineers, suppliers and ecosystems
SaaS connects engineers, suppliers and ecosystems • Ad-hoc collaboration for engineers • Personalized experiences • Access to the right data, anywhere, any device Page 47 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 48: Customers focus on innovation while we manage infrastructure
Allows customers to focus on innovation while we manage infrastructure and IT • Effortless scalability • Faster innovation • Easier access Page 48 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 49: SaaS and Cloud create opportunities for Siemens
SaaS and Cloud create opportunities for Siemens Page 49 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 50: Offering customers freedom of choice
Offering customers freedom of choice Subscription Cloud Perpetual On-premises Page 50 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 51: Transition to SaaS drives resilient, predictable growth
Transition to SaaS will drive resilient, predictable growth for Siemens Higher lifetime Easier Additional Capture On demand value of access monetization insights capabilities subscription Page 51 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 52: A commitment to future growth
A commitment to future growth >10% CAGR for Software ARR Page 52 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 53: Four growth levers to extend leadership
Based on its strong market positions Digital Industries will extend its leadership through four growth levers Industrial Communication • Integrated digital • Domain know-how thread Chemicals Automation • Lighthouse to broad • Sensors to edge market to cloud • Industrial Motion Automation and #1 • Pr
Slide 54: Land and expand: linking automation equipment to the Industrial Cloud
Land and expand: Linking existing automation equipment to the cloud via the Industrial Cloud • Efficiency improvement for production, logistics and supply chain through data transparency and advanced analytics Image • Joint development of use cases with Volkswagen, e.g.: • App for predictive quality
Slide 55: Expanding our leadership position in growth verticals
Expanding our leadership position in growth verticals • Improve line performance and availability • Tracking and analysis of downtimes • Customized manufacturing information system and mobile app for asset overview, faster fault diagnosis and predictive maintenance • Unlock annual production capacit
Slide 56: Broaden Industry 4.0 footprint with small and medium-sized enterprises
Broaden footprint of Industry 4.0 with small and medium-sized enterprises • Lockdown boosted demand for different varieties of canned beers • Ramp up production in short time for microbrewery Wolf of the Willows Image • Integrated automation and software solution with partner Deacam (Fermecraft) • L
Slide 57: CFO's agenda
CFO’s agenda • Continuous Productivity Addressing value drivers: growth, resilient revenue, • Flexible cost structure profitability and cash • Efficient asset management conversion rate • Stringent capital allocation Page 57 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 58: Continuous productivity: cost savings commitment
Continuous productivity DI will overachieve its CMD 2019 cost savings commitment Cumulative savings in million € Cumulative savings in million € 420 320 320 160 By FY 21 By FY 23 By FY 21 By FY 23 Page 58 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 59: Flexible cost structure
Flexible cost structure We will continue to focus on additional levers to take DI to the next level Push digital transformation of internal processes Balance value creation footprint Actively manage portfolio and drive business model innovation Make DI Sales ready for the future Drive cultural chang
Slide 60: Efficient asset management
Efficient asset management Converting growth into profit and cash | H1 Proven financial performance In €bn In €bn In €bn +4.7%1 +47% +51% 8.4 8.4 1.7 1.6 1.1 1.0 H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21 In €bn +9.4%1 In percent +0.02 +620bps 23 7.8 17 0.93 0.95 7.4 21.3 15.1 H1 FY 20 H1
Slide 61: Stringent capital allocation
Stringent capital allocation We allocate capital efficiently to ensure future growth and profit pools Overview on DI's investment areas Make Buy Partner • Leveraging on digitalization to ensure our Go-to-Market is future fit • Investments in the evolution of industrial operations for discrete and pr
Slide 62: A powerhouse combining the real and digital worlds
A powerhouse combining the real and digital worlds 2% Mendix and MindSphere Revenue split Revenue split 33% EDA €15.0bn 28% €4.1bn 65% PLM FY 20 Software FY 20 72% Automation Transition to SaaS incl. Service starting 2022 Page 62 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 63: Successful shift towards resilient recurring business
Resilient recurring business models Non-recurring business Perpetual licenses, services, and other 70% Successful shift towards resilient recurring business today models Recurring business Subscriptions, SaaS, maintenance 30% Page 63 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 64: ARR as key performance indicator
ARR as key performance indicator to monitor this resilient business stream Total contract value of a new subscription order its contract length in month(s) x12 Page 64 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 65: Highly accretive growth of recurring business
Digital Industries Software In billion € >10% CAGR Highly accretive growth of recurring business will drive 2.61 value of transformation FY 20 FY 25 1 Indication; non-audited, non-IFRS operational metric Page 65 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 66: Cloud business to represent more than 40%
Digital Industries Software Annual Recurring Revenue In billion € >10% CAGR Cloud business to represent more than 40% 2.61 of subscription 40% businesses by 2025 4% FY 20 FY 25 1 Indication; non-audited, non-IFRS operational metric Page 66 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06
Slide 67: Digital Industries Software
Digital Industries Software Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Page 67 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 68: SaaS Transition and its impact
SaaS Transition and its impact → Revenue On/above Start of transition High growth due to Harvesting sustainable growth development market growth Flat revenue growth base effect potentials of SaaS (dilution effect) FY 21 Profit level • Investment in SaaS transition, Mendix and MindSphere comparable t
Slide 69: DI software business transformation summary
DI SW business transformation Summary ARR is expected to grow Stable revenue in FY 22 at a CAGR > 10% until despite switch to ratable 2025 Investment covered Continued strong FCF by capital reallocation during transformation Page 69 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 70: Commitment of global leadership team
Commitment of global leadership team CMD 2021 Cedrik Neike Scot Rudolf Gardner Basson Brenda Tony Discher Hemmelgarn Dirk Didascalou ~72,000 Rainer Brehm Enthusiasts in DI Liliana Achim Gorla Peltz Stefan Eckard Gierse Eberle Karen Florschütz Page 70 Unrestricted | © Siemens 2021 | Capital Market Da
Slide 71: Digital Industries financial commitments
Digital Industries Financial commitments Targets over 3–5 year cycle 5–7% >10% 17–23% 1-growth Comparable CAGR for Profit margin Cash conversion revenue growth Software ARR rate (CCR) Page 71 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24