Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Q4 2013 Earnings Presentation

26 slides from Siemens Aktiengesellschaft's earnings presentation, Nov 7, 2013

  1. Slide 1: Q4 – Solid close to Fiscal 2013

    Joe Kaeser, President and CEO – Ralf P. Thomas, CFO Q4 – Solid close to Fiscal 2013 Q4 FY 2013, Analyst Conference London, November 7, 2013 Restricted © Siemens AG 2013. All rights reserved.

  2. Slide 2: Safe Harbour Statement

    Safe Harbour Statement 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 “expects,” “looks forward to,” “an

  3. Slide 3: Our agenda for today

    Our agenda for today Key Financials Q4 Fiscal 2013 Ongoing portfolio matters Shareholder return Priorities for Fiscal 2014 Outlook 2014 and beyond Restricted © Siemens AG 2013. All rights reserved. Page 3 London, November 7, 2013 Q4 FY 2013, Analyst Conference

  4. Slide 4: Despite higher transformation efforts we achieved our revised Fiscal 2013 guidance

    Despite higher transformation efforts we achieved our revised Fiscal 2013 guidance FY 2013 Outlook (as of Q3/2013) FY 2013 Actual Performance Orders (€bn) Revenue (€bn) • For Fiscal 2013, we expect clear order comp. comp. +10% -1% growth and a moderate decline in revenue 76.0 6.4 82.4 77.4 1.5 75.9

  5. Slide 5: One Siemens cockpit – FY 2013

    One Siemens cockpit – FY 2013 Call for focus on profitability & capital efficiency in FY 2014 Financial target system Growth1) Margins compared to industry benchmarks Revenue growth (rolling 4 quarters FY 13) EBITDA Margins (FY 2013) Energy 9.9% 10-15% Siemens -2.0% Healthcare 19.8% 15-20% -3.6% Ind

  6. Slide 6: Growth is driven by emerging markets

    Growth is driven by emerging markets Regional business split Key developments Q4 FY 13 Order growth y-o-y1) • Europe – Lower volume of large orders Europe/C.I.S./Africa/ME -10% • Americas – Sharp recovery of U.S. Wind (therein Germany) +5% business and large Fossil orders Americas +18% • China – Str

  7. Slide 7: Energy – Solid Sector performance

    Energy – Solid Sector performance Challenges in Transmission remain Key Figures Energy Main developments in Q4 €bn €m • Solid book-to-bill at 1.02 on lower volume of Orders 1) Revenue 1) Profit 2) major orders in Europe and Middle East -7% • Fossil – Solid profit impacted by lower products +2% 11.1%

  8. Slide 8: Healthcare – Strong performance continues

    Healthcare – Strong performance continues Key Figures Healthcare Main developments in Q4 €bn €m • Successful completion of 'Agenda 2013' Orders 1) Revenue 1) Profit 2) followed by 'Healthcare operating model' 17.6% 18.6% • Order growth fueled by strong equipment and +10% +5% service orders, and a ma

  9. Slide 9: Industry – Timely completion of transformation efforts

    Industry – Timely completion of transformation efforts Profit impacted by substantial transformation charges Key Figures Industry Main developments in Q4 €bn €m • Market bottoming – no reasons for Orders 1) Revenue 1) Profit 2) overexcitement on recovery 14.0% 12.5% • Industry Automation – Revenue d

  10. Slide 10: Infrastructure & Cities – focus on improving cost efficiency and project execution

    Infrastructure & Cities – While top-line grows, focus is on improving cost efficiency and project execution Key Figures Infrastructure & Cities Main developments in Q4 €bn €m • Orders – Rolling stock drives growth; while Orders 1) Revenue 1) Profit 2) margins on orders are decent, proper execution 8

  11. Slide 11: Below Total Sectors FY 2014 – lower volatility in Equity Investments expected

    Below Total Sectors FY 2014 – lower volatility in Equity Investments expected Q4 FY 2013 'Below Total Sectors' What to expect in FY 2014 €m • Equity Investments 112 • Lower volatility through NSN exit 107 110 • Expect ~€100m contribution for FY 2014 1,609 -47 -396 • SFS & CMPA in line with FY 2013 S

  12. Slide 12: Further progress in strengthening core activities by active portfolio management

    Further progress in strengthening core activities by active portfolio management Solar ramp down ongoing Energy Turbocare JV Wood Group (49%) TLT Turbo sold Healthcare Radiation Oncology ramp down Partnership with Varian LMS International Water Treatment Expansion of PLM portfolio Industry Low syner

  13. Slide 13: Free cash flow – Seasonal strong finish in Fiscal Q4

    Free cash flow Seasonal strong finish in Fiscal Q4 Free cash flow development ("all-in") Advance payments / Billings in Excess €m Total Sectors 5,328 Advance payments & BiE Orders Operating Working Capital (OWC) turns 4,700 €bn €bn Total Sector 85.4 9.0 16 83.1 90 7.7 76.8 80 FY 2012 FY 2013 70 15 1

  14. Slide 14: Attractive shareholder return driven by stable dividend & share buyback

    Attractive shareholder return driven by stable dividend & share buyback Corrected version from Nov 12, 2013 € 6.00 Payout ratio policy € 5.10 Dividend per share 5.00 Share buyback (SBB) effect per share € 4.37 Dividend payout ratio3) 4.00 SBB SBB 3.00 51% 60% 46% 42% 2.00 57% 40% 1.00 34% € 1.60 € 2

  15. Slide 15: Further optimization of capital structure through share buyback

    Further optimization of capital structure through share buyback Optimize capital structure ... ... via share buyback – key facts Adjusted industrial net debt/EBITDA • Scope 0.5-1.0x • Planned buyback volume up to €4bn • Execution period up to 2 years Cash position (FY 2013): €9.2bn • Reasons up to €

  16. Slide 16: Outlook Fiscal 2014

    Outlook Fiscal 2014 Basic earnings per share (Net income) • We expect our markets to remain In € challenging in Fiscal 2014. At least 15% growth • Our short-cycle businesses are not 6.55 anticipating a recovery until late in the fiscal year. 5.08 • We expect orders to exceed revenue, for a 4.74 book

  17. Slide 17: Operational priorities set the stage for review of strategy 'Siemens beyond 2014'

    Operational priorities, clear roles & responsibilities and value culture set the stage for review of strategy 'Siemens beyond 2014' • Resource allocation • Corporate Core • Accountability • Corporate Memory Management Model • Lead country • Risk concept management • Localization • Capital efficiency

  18. Slide 18: Our roadmap to shape 'Siemens beyond 2014'

    Our roadmap to shape 'Siemens beyond 2014' Managing Board Combine Sector and Region responsibility Streamline Management Board Foster accountability and alignment through individual incentive model Regional organization – Secure and optimize customer interface Set-up and implement lead country conce

  19. Slide 19: Appendix

    Appendix Restricted © Siemens AG 2013. All rights reserved. Page 19 London, November 7, 2013 Q4 FY 2013, Analyst Conference

  20. Slide 20: Q4 FY 2013 – Key figures

    Q4 FY 2013 – Key figures Siemens (continuing operations), €m Q4 FY 12 Q4 FY 13 Change Orders 21,251 21,011 3%1) Revenue 21,444 21,168 3%1) Book-to-bill ratio 0.99x 0.99x Total Sectors profit 1,932 1,609 -17% Income from continuing operations 1,230 1,075 -13% Basic earnings per share (in €) 1.35 1.20

  21. Slide 21: Net Debt Bridge as of Q4 FY13

    Net Debt Bridge as of Q4 FY13 €bn Q4 Q3 • SFS Debt +15.6 +0.6 • Pensions -9.3 +0.1 Operating Activities • Credit guarantees -0.6 -0.0 Adj. ind. Net Debt/ • Hybrid adjustments +0.9 +0.0 EBITDA therein: • Fair value adj. +1.2 -0.1 0.32x • Inventories net of advanced payments +0.7 (hedge accounting) (Q

  22. Slide 22: One Siemens financial framework sets the aspiration

    One Siemens financial framework sets the aspiration One Siemens Financial target system Siemens Outperforming Capital efficiency Capital structure revenue growth ROCE (cont. ops.)1) Adjusted industrial net debt / Growth (nominal) > EBITDA most relevant competitors 15 - 20% 0.5 - 1.0x M&A hurdle rate

  23. Slide 23: Improve customer proximity through simplified regional organization

    Improve customer proximity through simplified regional organization Simplified regional set-up as of Nov. 1, 2013 Old set-up: 14 Regional Clusters New set-up: 30 Lead Countries Lead Countries Assigned Countries • Elimination of one organizational level (Clusters) • 30 Lead Countries, covering > 85%

  24. Slide 24: Financial calendar

    Financial calendar November November 7 - 8, 2013 Q4 Earnings Release / Analyst Conference, Roadshow UK (London) November 12, 2013 Roadshow France (Paris) November 13, 2013 Roadshow Germany (Frankfurt) November 18 - 19, 2013 Roadshow U.S. (Boston, New York) December December 4 - 5, 2013 Capital Marke

  25. Slide 25: Siemens Investor Relations contact data

    Siemens Investor Relations contact data Mariel von Drathen +49-89-636-33780 Munich Office +49-89-636-32474 Fax: +49-89-636-32830 Internet: http://www.siemens.com/investorrelations Email: [email protected] Restricted © Siemens AG 2013. All rights reserved. Page 25 London, November 7, 2013

  26. Slide 26: 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. Orders and order backlog; adjusted or organic growth rates of revenue and orders; book-to-bill ratio; Total Sectors profit; return on equity (af

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