Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — JP Morgan European Capital Goods CEO Conference 2017
30 slides from Siemens Aktiengesellschaft's conference presentation, Jun 16, 2017
Slide 1: Vision 2020: Clear strategy – Strong execution
Vision 2020: Clear strategy – Strong execution Joe Kaeser, President and CEO JP Morgan European Capital Goods CEO Conference | Pennyhill Park, June 16, 2017 Unrestricted © Siemens AG 2017 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: Siemens by the numbers
Siemens by the numbers Delivering sustainable profitable growth Book-to-bill ratio Revenue Guidance FY 2017: Guidance FY 2017: Book-to-bill >1.0x in €bn Modest comparable growth +4% 1) 1.09 1.09 1.07 1.0x 75.6 79.6 +4% 1) 37.9 39.3 FY 2015 FY 2016 H1 FY 2017 FY 2015 FY 2016 H1 FY 2016 H1 FY 2017 Ind
Slide 4: Strong operational execution continues
Strong operational execution continues Targeted efficiency improvements announced Macroeconomic environment Siemens perspective on H2 FY 2017 Moderate growth pattern continues; PG: waiting for tangible news on Infra-invest • Very competitive environment in contracting Recovery momentum continues on
Slide 5: Why to own Siemens shares?
Why to own Siemens shares? 1 We execute and deliver now & in the future 2 We are attractively valued 3 We offer good return 4 We have a compelling strategy 5 We have a strong ownership culture Unrestricted © Siemens AG 2017 Page 5 Pennyhill Park, June 16, 2017 JP Morgan European Capital Goods CEO Co
Slide 6: We execute and deliver now & in the future
1. We execute and deliver now & in the future Vision 2020 Milestones Guidance to market €1bn cost savings €1.0bn €400m FY14 FY15 FY16 FY17 FY15 FY16 More details on pg. 13/14 More details on pg. 15 More details on pg. 16 Underperforming Project charges (€bn) The future in mind businesses • Managemen
Slide 7: We are attractively valued
2. We are attractively valued EV / EBITDA Multiple Average Competitor S Competitor A Competitor G Competitor R Cap Goods1) 14.0x 10.6x 10.9x 11.0x 10.8x 8.7x Source: Thomson Reuters; Next twelve months multiple as of June 8, Siemens and GE adjusted for SFS / GE Capital 1) Average Cap Goods contains
Slide 8: We offer good return
3. We offer good return Continued dividend increases for three years in a row (Payout ratio: 40-60% of net income) €5.401) +10% +6% +3% €3.30 €3.50 €3.60 €3.00 €3.00 €3.00 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017e Osram share Committed to share buyback price in € Osram spin-off create
Slide 9: We have a compelling strategy
4. We have a compelling strategy Clear Biggest strategic software imperatives business in the space Creating a Building More details on pg. 20/21 leading NEXT renewable GENERATION Siemens – the REAL Digital Enterprise energy player Healthcare • Comprehensive • Integrated • Unique Unrestricted © Siem
Slide 10: We have a strong ownership culture
5. We have a strong ownership culture • >165,000 employees own Siemens shares • Mandatory share ownership for Top Management • Attractive share matching for employees • Compelling management incentive plan fully aligned with capital market forces • “Open” performance reviews based on WHAT and HOW in
Slide 11: Appendix
Appendix Unrestricted © Siemens AG 2017 Page 11 Pennyhill Park, June 16, 2017 JP Morgan European Capital Goods CEO Conference
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
Slide 13: Siemens Vision 2020
Siemens Vision 2020 A strong foundation to drive profitable growth Value Scale up • Innovation initiative • Customer and market focus • Digitalization at work Strengthen core • Stringent capital allocation Drive performance • Continuous productivity improvement • Stringent project execution • Fix un
Slide 14: Clear intents for our seven overarching goals
Siemens Vision 2020 Clear intents for our seven overarching goals GOAL INTENT KPI Implement stringent company gover- Live lean governance and €1bn cost savings by FY 2016 achieved 1 nance with effective support functions drive continuous optimization Continued productivity of 3-5% Strengthen Sharpen
Slide 15: Guidance FY 2017
Guidance FY 2017 EPS (“all-in”) Guidance Update in € We confirm our expectations for fiscal 2017 presented with our results for 7.20 – 7.70 Q1 FY 2017. 6.80 – 7.20 We continue to expect modest growth in revenue, net of effects from currency translation and portfolio transactions, and anticipate that
Slide 16: Continuous productivity drives operational performance
Continuous productivity drives operational performance Siemens Operating Model key to ensure culture of adaptability Gross margin improvement on track Ongoing rigorous total cost productivity +120bps y-o-y in % of total cost base1) At least 4% of ~€4bn total cost base 31.8% ~€3bn 29.9% 28.6% 28.9% ~
Slide 17: Executing Vision 2020: Underperforming businesses
Executing Vision 2020 Underperforming businesses on track to meet FY 17 expectations Underperforming businesses (~€14.5bn revenue in FY 2016) Fiscal 2013 2014 2015 2016 2017e 2020e Year Footprint adjustments ongoing Profit Sharpened scope -4% -3% +1% +3% ~6% >8% Margin Fiscal 2017 expectations: FY 2
Slide 18: Portfolio strengthening continues
Executing Vision 2020 Portfolio strengthening continues along our strategic imperatives April 16 January 16 1| Areas of growth? Closing of divestment to AtoS Closing of acquisition 2| Potential profit pool? + Nov 16 January 16 Strategic alliance agreement Closing divestment of remaining (minor equit
Slide 19: Early focus on digitalization drives value and growth
Early focus on digitalization drives value and growth Revenue FY 2016 Market CAGR FY17-20 Strategic direction Digitalization Siemens software Digital services Strengthen leadership Leader ~€3.3bn ~€1.0bn ~+8% by combining software, IoT operating system MindSphere platforms & services +12%1) Automati
Slide 20: First provider of a fully integrated Digital Enterprise Suite
Siemens will be the first provider of a fully integrated Digital Enterprise Suite Acquisitions Bringing together the virtual world of product development 2007 with the real world of production automation Integrating 3D simulation and test to create the digital twin of 2012 products to predict perfor
Slide 21: MindSphere – the cloud-based, open IoT operating system
MindSphere – the cloud-based, open IoT operating system from Siemens MindApps Open ecosystem of applications Apps from Siemens, manufacturers, operators and app developers MindSphere MindSphere Various cloud infrastructures: Public, private or on-premise Operational data integrated with the Digital
Slide 22: Merger of Siemens Wind Power and Gamesa closed as planned
Merger of Siemens Wind Power and Gamesa closed as planned Transaction description & rationale Key figures (pro forma, LTM Mar 2017; source SGRE Q1 17) • Merger of the entire Siemens Wind Power business incl. Service with Gamesa closed on April 3, 2017 Combined business1) • Creation of a global leade
Slide 23: Siemens Healthineers: From Good – to Great – to Fascinating
Siemens Healthineers From Good – to Great – to Fascinating Leading position in key markets and resilient performance Distinct trends at work Profit +4ppts 17.2% Transformation of Healthcare providers continues: 13.2% margin Providers today seek CAGR +2.9% (FX comp.) relevant suppliers/partners 11.1
Slide 24: Preparing listing of Siemens Healthineers
Strengthen our leading position by preparing listing of Siemens Healthineers Transformation in the … listing best suited to manage transition healthcare market continues… • Paradigm shifts visible: Transition from • Strengthen and build position in identified growth fields (i) product business to so
Slide 25: Ownership Culture is the cornerstone for performance management
Ownership Culture is the cornerstone for performance management and it is reflected in our incentive system Ownership culture embedded in performance management WHAT targets HOW expectations • WHAT was achieved • HOW were the results accomplished • Considers target achievements, overall results, a p
Slide 26: Q2 FY 2017: Another strong quarter
Q2 FY 2017 Another strong quarter – profitable growth continuing • Successful closing of Siemens Gamesa merger and Mentor acquisition • Orders +1% at €22.6bn despite tough comps - excluding €3.1bn Egypt orders up +17% Substantial volume from large orders and base orders clearly up • Accelerated reve
Slide 27: Financial cockpit – Q2 FY 2017
Financial cockpit – Q2 FY 2017 Orders Revenue Profit Industrial Business (IB) Net Income in €bn +1% Comp. +5% in €bn in €bn (+2%) (nom.) (+6%) +18% 0% 22.3 22.6 2.5 19.0 20.2 2.1 1.5 1.5 11.4% 12.4% B-t-B 1.17 1.12 Margin 10.9% 12.1% Q2 FY 16 Q2 FY 17 Q2 FY 16 Q2 FY 17 Q2 FY 16 Q2 FY 17 Q2 FY 16 Q2
Slide 28: Significant operational free cash flow improvement
Significant operational free cash flow improvement – Overall more balanced development Free cash flow Industrial Business free cash flow €m +1.4bn €m +32% 738 1,452 1,951 1,477 714 812 84 Q2 FY 16 Q2 FY 17 • Strong free cash flow improvement driven by PG, BT, DF • Net operating working capital incre
Slide 29: Financial calendar
Financial calendar August 3, 2017 August Q3 Earnings Release September 8, 2017 September Morgan Stanley Industrials & Natural Resources conference (London) November 9, 2017 November Q4 Earnings Release Unrestricted © Siemens AG 2017 Page 29 Pennyhill Park, June 16, 2017 JP Morgan European Capital Go
Slide 30: Investor Relations contacts
Investor Relations contacts Investor Relations Internet: www.siemens.com/investorrelations Email: [email protected] IR-Hotline: +49 89 636-32474 Fax: +49 89 636-1332474 Unrestricted © Siemens AG 2017 Page 30 Pennyhill Park, June 16, 2017 JP Morgan European Capital Goods CEO Conference
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