Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Q4 FY2012 Earnings Presentation

30 slides from Siemens Aktiengesellschaft's earnings presentation, Nov 8, 2012

  1. Slide 1: Siemens 2014 – Headstart with strong Q4

    Siemens 2014 – Headstart with strong Q4 Peter Löscher, President and CEO Joe Kaeser, CFO Q4 FY 2012, Analyst Meeting London, November 8, 2012 Page 1 Q4 FY 2012, Analyst Meeting, November 8, 2012 Copyright © Siemens AG 2012. All rights reserved.

  2. Slide 2: Safe Harbour Statement

    Safe Harbour Statement This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on equity (after tax), or ROE (afte

  3. Slide 3: Free cash flow and strong underlying profits drive fiscal Q4 performance

    Free cash flow and strong underlying profits drive fiscal Q4 performance Siemens (continuing operations), in €m Q4 FY 11 Q4 FY 12 Change New orders 21,059 21,495 -4%1) Revenue 20,285 21,703 1%1) Book-to-bill 1.04x 0.99x Profit Total Sectors 2,428 2,1192) -13% Income (from continuing operations) 1,51

  4. Slide 4: We achieved our FY 2012 guidance despite significant impacts

    We achieved our FY 2012 guidance despite significant impacts FY 2012 Outlook FY 2012 Actuals New Orders (cont. ops.) Revenue (cont. ops.) For fiscal 2012 we in €bn comp. Book-to-bill expect moderate -13% 0.98 comp. +3% organic revenue 85.2 -8.3 growth compared 76.9 73.3 5.0 78.3 to fiscal 2011, and

  5. Slide 5: Orders declined due to slowing world economy while modest revenue growth is driven by the Americas

    Orders declined due to slowing world economy while modest revenue growth is driven by the Americas Regional business split Purchasing Managers Index Index Q4 FY 12 Order growth y-o-y1) 65 US ISM Eurozone Manuf. PMI Expanding economy 60 Europe/C.I.S./Africa/ME -5% 55 (therein Germany) -44% 51.7 50 -2

  6. Slide 6: Energy – Improved volume but profit burdened by project and Iran charges

    Energy – Improved volume but profit burdened by project and Iran charges Key Figures Energy Main developments in Q4 in €bn in €m Significantly higher amount of large orders in Orders1) Revenue1) Profit Americas and Asia/Australia; improved book- to-bill at 1.14 +4% +3% -57% 808 Moderate revenue grow

  7. Slide 7: Healthcare – Execution of Agenda 2013 delivers desired results

    Healthcare – Execution of Agenda 2013 delivers desired results Key Figures Healthcare Main developments in Q4 in €bn in €m Improved revenue growth driven by Orders1) Revenue1) Profit Asia/Australia (i. p. China) while Europe/CAME and Americas were soft -3% +4% +28% Very strong profit margin led by e

  8. Slide 8: Industry – Solid quarter in less favorable markets

    Industry – Solid quarter in less favorable markets Key Figures Industry Main developments in Q4 in €bn in €m Short cycle businesses with a solid Orders1) Revenue1) Profit performance in a challenging market -7% -2% -6% Industry Automation 5.0 4.8 5.5 5.6 772 726 Strengthening industrial software 2)

  9. Slide 9: Infrastructure & Cities – Decent profit improvement despite flat comparable revenues

    Infrastructure & Cities – Decent profit improvement despite flat comparable revenues Key Figures Infrastructure & Cities Main developments in Q4 in €bn in €m Orders1) Revenue1) Profit Order intake decreased due to lower volume in -10% +18% large rolling stock orders 0% 4.6 5.0 416 Revenue growth dri

  10. Slide 10: Outstanding cash generation in Q4 FY 12 benefited from earlier than expected payments

    Outstanding cash generation in Q4 FY 12 benefited from earlier than expected payments Free Cash Flow development FY 12 Profit to FCF transition (Total Sectors) €m 5,150 €m Operating Net Working Capital ∑ Impact of OWC changes: (Total Sectors) 1,619 -415 2,116 111 9.0 8.9 4,562 7,543 171 548 1,164 7,

  11. Slide 11: FY 12 was significantly impacted by NSN charges

    FY 12 was significantly impacted by NSN charges Q4 FY 2012 'Below Total Sectors' FY 2012 'Below Total Sectors' €m €m 88 7,543 479 -29 115 100 23 -549 44 -283 -255 -47 2,119 -24 Disposal gain -14 included -16 Driven by significant -2,094 NSN restructuring -535 charges Therein: -23m Atos Therein: reim

  12. Slide 12: Share buyback of ~€2.9bn is EPS accretive and generates cash savings

    Share buyback of ~€2.9bn is EPS accretive and generates cash savings of more than €100m per year Capital stock and number Equity to Debt Swap of shares outstanding Number of shares in millions Share buyback successfully executed 914 33 Share buyback finalized on Nov 7, 2012: 881 ~39 Cancellation ~84

  13. Slide 13: Attractive shareholder return through stable dividend and share buyback

    Attractive shareholder return through stable dividend and share buyback Dividend payout ratio incl. SBB € 5.50 Dividend payout ratio 94% 100% 5.00 Dividend per share 90% 4.50 Dividend payout ratio (range 30 – 50%) 2.06 80% 4.00 70% 3.50 56% 58% 56% 60% 3.00 42% 50% 2.50 46%3) 49%3) 40% 2.00 1.50 34%

  14. Slide 14: One Siemens cockpit reveals focus areas of new program

    One Siemens cockpit reveals focus areas of new program Financial target system Growth1) Margins compared to industry benchmarks Revenue growth (rolling 4 quarters Q4 FY 12) EBITDA Margins (FY 2012) Energy 9.3% 10-15% Siemens 6.9% Healthcare 18.5% 15-20% +1.8% Industry 14.9% 11-17% Competitors1) 5.1%

  15. Slide 15: Target for Total Sectors profit margin is at least 12% by FY 14

    Target for Total Sectors profit margin is at least 12% by 2014 – All Sectors in EBITDA margin corridor 15% Total Sector Profit (as reported) Energy 9.3% 10% Total Sector FY 12 Target FY 14 Profit Margin ≥ 12% Healthcare 18.5% 20% 9.5% 15% FY 12 Target FY 14 Total Sector 7,543 14.9% 17% Industry Prof

  16. Slide 16: Key enabler 'Cost reduction' and 'Focus on core activities' with the highest impact expected

    Key enabler 'Cost reduction' and 'Focus on core activities' with the highest impact expected ~ €3bn in procurement e.g. by stepping up design-to-cost effectiveness and material productivity of operational key processes (Engineering, Development and Manufacturing) Cost by further integration of SCM 1

  17. Slide 17: Siemens 2014 with defined milestones to report on progress

    Siemens 2014 with defined milestones to report on progress Target Levers CMD E CMD I / IC Margin Cost 1 reduction Continuous update (Quarterly Reports) Total Sector Solar Profit Strengthen Margin 2 core Water Continuous update on actions and progress ≥ 12% activities LMS 3 4 5 Update Update Q4 Q1 Q2

  18. Slide 18: Strengthen core activities has priority and gets off to a decisive start

    ples am Ex Strengthen core activities has priority and gets off to a decisive start 2 Changed framework conditions Solar & Hydro Division discontinued Divest: Photovoltaic Solar-thermal Strong -19% p.a. business business price pressure in PV1) World World 2009 2010 2011 2012 2013e In € Continue: CSP

  19. Slide 19: More than €4.0bn investment in industrial software and IT since 2007

    ples am Ex More than €4.0bn investment in industrial software and IT since 2007 2 Comos software for process Ethernet communication products Digital lifecycle industries (2008) and network solutions (2012) Automation Software driven Hardware driven Computer-aided motion software (2012) CAD Factory A

  20. Slide 20: Siemens to strengthen industry software portfolio with LMS International

    ples am Ex Siemens to strengthen industry software portfolio with LMS International 2 Leading PLM software provider for testing and simulating of mechatronic systems for mainly automotive (55%), aerospace (25%) and Energy / other industries (20%) Profile Founded in 1980, Headquarters in Leuven (Belg

  21. Slide 21: Strengthen core activities: Divestment of water treatment activities

    ples am Ex Strengthen core activities: Divestment of water treatment activities 2 Re-focusing water and wastewater business on Siemens core competence in Portfolio automation and drives Change Planned divestment of water treatment activities Low synergies of water treatment activities with automatio

  22. Slide 22: Cost Reduction: All Sectors have identified a large number of improvement projects

    ples am Ex Cost Reduction: All Sectors have identified a large number of improvement projects and started execution Design to cost in Fossil frames – Consolidation of Mechanical Drives – 1 1 Sector Energy Sector Industry Standardization of Optimization of manufacturing 50 and 60Hz frames footprint t

  23. Slide 23: Cost Reduction: Purchasing moves to the next level of integration

    ples xam E Cost Reduction: Purchasing moves to the next level of integration – around €3bn savings expected 1 Phase I: Consolidation Phase II: Integration Siemens-wide managed Volume eAuction – Share as percentage of Purchasing Volume as percentage of Purchasing Volume Driving +90% >+1000% cost effe

  24. Slide 24: Productivity improvement of ~€6bn is required by 2014

    Based on our business assumptions productivity improvement of ~€6bn is required by 2014 Total Sector Profit Margin (% revenue) ≥ 12.0% +250bps 9.5% • Macro headwinds • Modest • 2.5 – 3% p.a. growth pricing pressure Profit Volume / Price Cost Productivity Profit 2012 Degression Erosion Inflation Plan

  25. Slide 25: Execution of Siemens 2014 is driving performance

    Execution of Siemens 2014 is driving performance – Portfolio and resource management gets sharper focus One Siemens The integrated technology company Financial target system Outperforming Capital efficiency Capital structure revenue growth Adjusted industrial net ROCE (cont. ops.)1) Growth (nominal)

  26. Slide 26: Outlook 2013

    Outlook 2013 In fiscal 2013, Siemens begins implemen- tation of 'Siemens 2014', a company-wide program supporting our One Siemens framework for sustainable value creation. The goal of the program is to raise our Total Sectors profit margin to at least 12% by fiscal 2014. In the first year of the pro

  27. Slide 27: Appendix

    Appendix Page 27 Q4 FY 2012, Analyst Meeting, November 8, 2012 Copyright © Siemens AG 2012. All rights reserved.

  28. Slide 28: Financial calendar

    Financial calendar November 8 – 9, 2012 November Q4 Earnings release and Analyst meeting (London), UK Roadshow November 12 – 13, 2012 US Roadshow (Boston, New York) November 16, 2012 French Roadshow (Paris) November 19, 2012 German Roadshow (Frankfurt) December December 10 – 11, 2012 Capital Market

  29. Slide 29: Siemens investor relations contact data

    Siemens investor relations contact data Mariel von Drathen +49-89-636-33780 Munich Office +49-89-636-32474 Internet: http://www.siemens.com/investorrelations Email: [email protected] Fax: +49-89-636-32830 Page 29 Q4 FY 2012, Analyst Meeting, November 8, 2012 Copyright © Siemens AG 2012.

  30. Slide 30: Reconciliation and Definitions for Non-GAAP Measures

    Reconciliation and Definitions for Non-GAAP Measures This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on eq

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