Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Q2 2016 Earnings Presentation

27 slides from Siemens Aktiengesellschaft's earnings presentation, May 4, 2016

  1. Slide 1: Q2 – Continuing growth in orders, revenue and profitability

    Q2 – Continuing growth in orders, revenue and profitability Joe Kaeser, President and CEO | Ralf P. Thomas, CFO Q2 FY 2016 Analyst Conference | London, May 4, 2016 Unrestricted © Siemens AG 2016 siemens.com

  2. 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

  3. Slide 3: Q2 FY 2016 – Continuing growth in orders, revenue and profitability

    Q2 FY 2016 – Continuing growth in orders, revenue and profitability • Execution of Vision 2020 fully on track • Further portfolio optimization and cost savings acceleration • Clear order increase of 7% to €22.3bn (excl. FX +10%) • Record backlog of €115bn, book-to-bill at excellent 1.17x • Accelerat

  4. Slide 4: Major bookings in Egypt and Europe

    Major bookings in Egypt and Europe Q2 FY 2016 y-o-y Orders Revenue Europe/C.I.S./Africa/ME 20% 7% (therein Germany) -43% -7% Americas -16% 3% (therein U.S.) -5% 10% Asia/Australia 7% 1% (therein China) 13% -8% 1) Change is adjusted for currency translation and portfolio effects Orders Revenue Europe

  5. Slide 5: Convinced customers – Reliable partner – Good business

    Convinced customers – Reliable partner – Good business Megadeals in Egypt – execution on track Major offshore order in Wind Power • €3.1bn orders for Burullus and New Capital power plants incl. East Anglia ONE project long-term service contract • Fast track projects for 9.6 GW (16 H-class turbines)

  6. Slide 6: PG: Great performance in a challenging market; WP: Exceptionally strong

    PG: Great performance in a challenging market environment WP: Exceptionally strong Power and Gas (PG) Wind Power and Renewables (WP) Orders Revenue Orders Revenue €bn €bn +86%1) +15%1) 6.2 +60%1) +18%1) 3.1 3.1 3.9 1.4 2.1 1.3 1.5 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY

  7. Slide 7: EM: Impressive turnaround; BT: Solid performance and great leadership

    EM: Impressive turnaround through stringent execution BT: Solid performance and great leadership Energy Management (EM) Building Technologies (BT) Orders Revenue Orders Revenue €bn €bn -0%1) -1%1) +1%1) +1%1) 3.1 3.0 2.8 2.7 1.5 1.5 1.4 1.4 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY

  8. Slide 8: DF: Top line flat – Bottom line top; PD: Structural challenges addressed

    DF: Top line flat – Bottom line top PD: Structural challenges addressed for long term recovery Digital Factory (DF) Process Industries and Drives (PD) Orders Revenue Orders Revenue €bn €bn +1%1) +0%1) -2%1) -3%1) 2.6 2.6 2.4 2.4 2.4 2.3 2.2 2.1 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q

  9. Slide 9: MO: Leading margins; HC: Consistently strong performer

    MO: Stringent execution secures leading margins in the sector HC: Consistently strong performer in the market Mobility (MO) Healthcare (HC) Orders Revenue Orders Revenue €bn €bn -50%1) +2%1) +5%1) +6%1) 3.8 3.2 3.2 3.2 3.3 1.8 1.8 1.9 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2

  10. Slide 10: Below Industrial Business: Strong results from SFS, D/O-gain

    Below Industrial Business: Strong results from SFS, D/O-gain from sale of remaining financial assets from hearing aid business Below Industrial Business (Q2 FY 2016) Expectations for H2 FY 2016 in €m • SFS: H2 in line with prior year -99 22 • CMPA: Negative impact H2 smaller than prior year, 2,115 2

  11. Slide 11: Broad based improvements of free cash flow

    Broad based improvements of free cash flow Free cash flow ("all-in") Divisional free cash flow in Q2 FY 16 €m €m +165 +1,053 812 402 +193 332 326 260 237 168 168 178 184 +262 +469 97 67 69 84 32 9 -72 -241 -385 -230 Q2 FY 15 Q2 FY 16 H1 FY 15 H1 FY 16 PG WP EM BT MO DF PD HC Q2 FY 2015 Q2 FY 2016 Un

  12. Slide 12: Accelerated execution of cost reduction measures

    Accelerated execution of cost reduction measures Target achievement of ~€1bn well on track Cumulated effects of savings €850m – €800m – €1bn €1bn €950m €900m €400m €150m – €200m FY 2015 FY 2016e FY 2017e View on distribution of savings as of Q4 FY 2015 View on distribution of savings as of Q2 FY 201

  13. Slide 13: Measures for ongoing productivity improvement of 3-5% per annum

    Measures for ongoing productivity improvement of 3 - 5% per annum Example: Supply chain management Supply chain management - BOLD moves program 2020 'Traditional' procurement levers  Contract management & pooling + Cross-functional levers  Demand/spend management  Negotiations excellence  Core/n

  14. Slide 14: Executing Vision 2020 Capital allocation along strategic imperatives continues

    Executing Vision 2020 Capital allocation along strategic imperatives continues 1| Areas of growth? January 16 April 16 2| Potential profit pool? Closing of divestment to AtoS Closing of acquisition of CD-adapco for 3| Why Siemens? $970m to pursue industrial software strategy January 16 4| Synergetic

  15. Slide 15: The future in mind: Joining forces with Airbus

    The future in mind Joining forces with Airbus for breakthrough innovation Cooperation in field of Hybrid Electric Propulsion Systems • Launch of joint long-term project to electrify aviation • Demonstrate technical feasibility by 2020 • Develop prototypes for various propulsion systems & power class

  16. Slide 16: Hannover Fair 2016 - Not only for golfers!

    Hannover Fair 2016 - Not only for golfers! “Ingenuity for life – Driving the Digital Enterprise“ Digital Enterprise – Key innovations Enhance Industrial software and automation portfolio 1 • Integration of CD-adapco flow simulation • Significant expansion of TIA-Portal and COMOS Software suite 2 Exp

  17. Slide 17: Guidance FY 2016 – Outlook confirmed

    Guidance FY 2016 – Outlook confirmed We confirm our financial guidance for fiscal 2016, although the market environment for our high margin short cycle business may not pick up materially in the second half. We still anticipate further softening in the macroeconomic environment and continuing comple

  18. Slide 18: Appendix

    Appendix Unrestricted © Siemens AG 2016 Page 18 London, May 4, 2016 Q2 FY 2016 Analyst Conference

  19. Slide 19: Siemens Vision 2020 – Stringent execution delivers results

    Siemens Vision 2020 – Stringent execution delivers results Value Scale up • Innovation initiative • Customer and market focus • Digitalization at work Strengthen core • Stringent capital allocation Drive performance • Cost reduction support functions (€1bn) • Global footprint optimization • Fix unde

  20. Slide 20: 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

  21. Slide 21: Financial Cockpit – Q2 FY 2016

    Financial Cockpit – Q2 FY 2016 Orders Revenue Profit Industrial Business (IB) Net Income in €bn +7% Comp. +5% in €bn in €bn (+7%) (nom.) (+5%) +28% -62% BSH and 3.9 20.8 22.3 2.1 Audiology 18.0 19.0 1.7 €3bn 9.6% 11.4% 1.5 B-t-B 1.15 1.17 Margin 10.9% 9.0% Q2 15 Q2 16 Q2 15 Q2 16 Q2 FY 15 Q2 FY 16 Q

  22. Slide 22: Underperforming businesses show improvement

    Underperforming businesses show improvement Underperforming businesses Unconsolidated Revenue FY 2015 in €bn ~15 ~1.2 ~14 Fiscal 2013 2014 2015 2017e 2020e Siemens Year Compressors Margin -4% -3% +1% ~6% >8% • Tight monitoring of business plans • Footprint optimization • Sharpening business scope Un

  23. Slide 23: Net Debt Bridge – Q2 FY 2016

    Net Debt Bridge – Q2 FY 2016 €bn Q2 ΔQ1 Operating Activities • SFS Debt +21.4 -0.1 • Post emp. Benefits -11.7 -1.6 • Credit guarantees -0.8 +0.1 Adj. ind. Net Debt/ • Hybrid bond +0.9 -0.0 EBITDA (c/o) • Fair value adj. +0.8 -0.1 1.1x (Q1 FY16: 0.8x) (hedge accounting) therein: therein a.o.: • Δ Inv

  24. Slide 24: SFS Key Figures – Q2 FY 2016

    SFS Key Figures – Q2 FY 2016 Key Financial Data SFS • Assets €25.3bn • Income before income taxes €226m • Return on Equity after tax 31,8% • Operating and Investing Cash Flow - €678m Assets Liabilities and Equity €bn €bn 1.5 0.2 25.3 25.3 2.5 22.4 1.3 21.4 1.4 Leases & Equity Other Assets Cash Total

  25. Slide 25: Underfunding for Siemens' pension plans increased to -€10.9bn

    Underfunding for Siemens’ pension plans increased to -€10.9bn in Q2 FY 2016 Funded status for Siemens’ pension plans increased in Q2, mainly due to decreased discount rate assumption Q1 Q2 in €bn1) FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 Defined benefit obligation (DBO) on pension benefit plans (32.

  26. Slide 26: Financial calendar

    Financial calendar May 4, 2016 Q2-Earnings Release and Roadshow UK (London) May May 9, 2016 Roadshow Germany (Frankfurt) June 1, 2016 Bernstein Conference (New York) June 9, 2016 JP Morgan Conference (London) June June 14, 2016 Exane Conference (Paris) June 28 – 29, 2016 Capital Market Day “Energy a

  27. Slide 27: Investor Relations

    Siemens Investor Relations contacts Investor Relations Internet: www.siemens.com/investorrelations Email: [email protected] IR-Hotline: +49 89 636-32474 Fax: +49 89 636-32830 Unrestricted © Siemens AG 2016 Page 27 London, May 4, 2016 Q2 FY 2016 Analyst Conference

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