Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Q4 2015 Earnings Presentation
30 slides from Siemens Aktiengesellschaft's earnings presentation, Nov 12, 2015
Slide 1: Q4 – Strong finish for fiscal 2015
Q4 – Strong finish for fiscal 2015 Analyst Call | Berlin, November 12, 2015 Joe Kaeser, President and CEO Ralf P. Thomas, CFO © Siemens AG 2015
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: Our agenda for today
Our agenda for today Guidance delivered – key financials Q4 Fiscal 2015 Driving value for shareholders Execution of “Siemens Vision 2020” on track Priorities for Fiscal 2016 and beyond © Siemens AG 2015 Page 3 Berlin, November 12, 2015 Q4 FY 2015, Analyst Call
Slide 4: Guidance for FY 2015 delivered
Guidance for FY 2015 delivered FY 2015 Outlook FY 2015 Actual Performance Orders (€bn) Revenue (€bn) • We believe that our business environment comp. Book-to-bill comp. will be complex in fiscal 2015, among other -1% 1.09 -1% things due to geopolitical tensions. +4.7 82.3 77.7 71.2 +4.4 75.6 • We ex
Slide 5: Q4 - Strong finish of fiscal 2015 in a challenging environment
Q4 - Strong finish of fiscal 2015 in a challenging environment • Strong order increase to €23.7bn (+15%; organic +6%); backlog of €110bn • Revenue up 4% at €21.3bn; organically lower as expected (-4%) • Translational tailwind from FX on orders (+6%) & revenue (+5%) • Convincing Industrial Business m
Slide 6: Landmark wins in energy businesses drive orders
Landmark wins in energy businesses drive orders Orders Q4 FY 15 y-o-y1) Revenues Europe/C.I.S./Africa/ME +13% -4% (therein Germany) +24% -1% Americas +8% 0% (therein U.S.) -1% +3% Asia/Australia -12% -10% (therein China) +7% -10% 1) Change is adjusted for currency translation and portfolio effects Q
Slide 7: PG: Convincing order growth in a tough market; WP: Strong orders and turnaround in profits
PG: Convincing order growth in a tough market WP: Strong orders and turnaround in profits Power and Gas (PG) Wind Power and Renewables (WP) Orders Revenue Orders Revenue €bn €bn +13%1) -17%1) +45%1) 5.3 -10%1) 3.7 3.7 4.0 1.8 2.7 1.6 1.5 Q4 FY 14 Q4 FY 15 Q4 FY 14 Q4 FY 15 Q4 FY 14 Q4 FY 15 Q4 FY 14
Slide 8: EM: Excellent performance in all aspects; BT: Consistent delivery in Q4
EM: Excellent performance in all aspects BT: Consistent delivery in a seasonally strong Q4 Energy Management (EM) Building Technologies (BT) Orders Revenue Orders Revenue €bn €bn +16%1) +7%1) +0%1) +3%1) 2.7 3.3 3.1 3.5 1.6 1.7 1.5 1.7 Q4 FY 14 Q4 FY 15 Q4 FY 14 Q4 FY 15 Q4 FY 14 Q4 FY 15 Q4 FY 14 Q
Slide 9: DF: Strong showing in a weakening environment; PD: Sector related weakness
DF: Strong showing in a weakening environment PD: Sector related weakness impacts the business Digital Factory (DF) Process Industries and Drives (PD) Orders Revenue Orders Revenue €bn €bn +5%1) +1%1) +1%1) -4%1) 2.3 2.5 2.5 2.7 2.2 2.3 2.7 2.7 Q4 FY 14 Q4 FY 15 Q4 FY 14 Q4 FY 15 Q4 FY 14 Q4 FY 15 Q
Slide 10: MO: Great margins supported by infrastructure mix; HC: Excellent margin expansion
MO: Great margins supported by infrastructure mix HC: Excellent margin expansion on modest growth Mobility (MO) Healthcare (HC) Orders Revenue Orders Revenue €bn €bn +1%1) +1%1) -17%1) -10%1) 2.7 3.6 3.8 3.4 3.6 2.4 2.1 2.0 Q4 FY 14 Q4 FY 15 Q4 FY 14 Q4 FY 15 Q4 FY 14 Q4 FY 15 Q4 FY 14 Q4 FY 15 Prof
Slide 11: Below-the-Line materially impacted by Corporate Items & One offs in CMPA
Below-the-Line materially impacted by Corporate Items & One offs in CMPA and helped by a solid SFS Below Industrial Business - Q4 FY 2015 Expectations for FY 2016 in €m • SFS: Operationally in line with FY 2015 144 -342 2,455 • CMPA: includes other portfolio elements (e. g. 9 Postal & Baggage Handli
Slide 12: Extraordinary strong free cash flow in Q4 driven by working capital improvements
Extraordinary strong free cash flow in Q4 driven by operating net working capital improvements Quarterly free cash flow ("all-in") Key drivers free cash flow Free cash flow effect from change in Operating Net €m Working Capital Q4 FY15 Ʃ FY 2015 4,674 +€2.2bn 373 4,375 611 1,112 66 +27% y-o-y Δ Δ Δ
Slide 13: Sustainable value generation delivers attractive shareholder returns
Sustainable value generation delivers attractive shareholder returns and enables profit sharing Attractive dividend yield Share buyback finalized • Dividend increase to €3.50 resulting in an • €4bn from May 2014 until October 2015 attractive 4.4% dividend yield2) • 43m shares repurchased • Average p
Slide 14: Accelerated execution of functional cost reduction measures
Accelerated execution of functional cost reduction measures, target achievement of ~€1bn is on track Cumulated effects of savings €700m – €800m – €1bn €1bn €900m €900m €400m €150m – €200m FY 2015 FY 2016e FY 2017e View on distribution of savings as of Q2 FY 2015 © Siemens AG 2015 Page 14 Berlin, Nov
Slide 15: 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 Year Siemens Compressors Margin -4% -3% +1% ~6% >8% • Tight monitoring of business plans • Footprint optimization • Sharpening business scope Un
Slide 16: Dresser-Rand integration is progressing well
Dresser-Rand integration is progressing well Dresser-Rand Business (combined Dresser-Rand & Siemens compressor business) 18 year service contract awarded by Q4 FY 2015 Dolphin Energy (Abu Dhabi): Strategy 9 ADGT’s from ex-Rolls- comparable works Royce Energy and the Orders € 0.8bn related 9 Dresser-
Slide 17: Innovation strength drives customer attention, competitiveness and future growth
Innovation strength drives customer attention, competitiveness and future growth Priorities for innovation (Examples) Outcomes R&D expenses in €bn MES PLM TIA % of revenue ~+20% SIMATIC IT Teamcenter / NX SIMATIC / SINUMERIK 5.9% 5.6% ~4.8 4.5 Digital Factory: Integrated software suite for 4.0 the D
Slide 18: Vertical Software and Digital Services are key driver for our growth
Vertical Software and Digital Services are key driver for our growth dynamics Digitalization Vertical Digital software services ~€3.1bn ~€0.6bn +~16% Revenue FY 2015 Revenue FY 2015 • Build on deep Automation Profitability ++ Profitability +++ domain know-how • Leverage M&A and Enhanced Classic auto
Slide 19: Siemens Vision 2020 on track: Execution milestones until 2017
Siemens Vision 2020 on track Execution milestones until 2017 Until Execution steps Q4 2014 Implementation of new and simplified organization by Oct. 1 Introduction of incentive system 2015 Q2 2015 Stringent portfolio optimization - closing of announced divestments Measures for structural optimizatio
Slide 20: Siemens Vision 2020 – Leadership priorities for fiscal 2016
Siemens Vision 2020 – Optimization Leadership priorities for fiscal 2016 Value Scale up • Tangible results from innovation initiative • Roll-out Digitalization platforms and Strengthen core digital services • Integration of acquisitions & • Growth focus on current spectrum and delivery of synergies
Slide 21: Assumptions for FY 2016, we build our guidance on
Assumptions for FY 2016, we build our guidance on • Weakening macros for the sector in first half and rebound Macroeconomic environment of short cycles in second half of the year; no worse geopolitics Pricing • Pricing pressure around 2% of revenue Personnel cost inflation • 3 – 4% increase Producti
Slide 22: Guidance FY 2016
Guidance FY 2016 Rebased EPS1) (“all-in”) Guidance We anticipate further softening in the macroeconomic in € environment and continuing complexity in the 8.84 -2.05 geopolitical environment in fiscal 2016. Nevertheless, we expect moderate revenue growth, net of 5.90 - 6.20 effects from currency tran
Slide 23: Appendix
Appendix © Siemens AG 2015 Page 23 Berlin, November 12, 2015 Q4 FY 2015, Analyst Call
Slide 24: Financial Cockpit
Financial Cockpit Orders Revenue Profit Industrial Business (IB) Net Income in €bn -1% Comp. -1% in €bn in €bn (+6%) (nom.) (+6%) +1% +34% 77.7 82.3 7.7 7.8 7.4 71.2 75.6 5.5 10.8% B-t-B 1.09 1.09 Margin 10.6% 10.1% FY 14 FY 15 FY 14 FY 15 FY 2014 FY 2015 FY 2014 FY 2015 EPS (“all-in”) ROCE (“all-in
Slide 25: One Siemens Financial Framework – Clear targets
One Siemens Financial Framework – Clear targets to measure success & accountability One Siemens Financial Framework Siemens Capital efficiency Capital structure Growth: (ROCE2)) (Industrial net debt/EBITDA) Siemens > most 15-20% up to 1.0x relevant competitors1) (Comparable revenue growth) Total cos
Slide 26: Net Debt Bridge as of Q4 FY 2015
Net Debt Bridge as of Q4 FY 2015 €bn Q4 ΔQ3 • SFS Debt +21.2 +0.0 • Post emp. Benefits -9.8 -0.1 Operating Activities • Credit guarantees -0.9 +0.0 Adj. ind. Net Debt/ • Hybrid bond +1.0 -0.0 EBITDA • Fair value adj. +0.9 -0.1 0.7x (hedge accounting) (Q3 FY15: 1.2x) therein a.o.: • CAPEX -0.7 therei
Slide 27: SFS Key Figures Q4 FY 2015
SFS Key Figures Q4 FY 2015 Key Financial Data SFS • Assets €25.0bn • Income before income taxes €144m • Return on Equity after tax 19.3% • Operating and Investing Cash Flow - €208m Assets Liabilities and Equity €bn €bn 1.5 0.2 25.0 25.0 2.4 1.0 22.2 21.2 1.4 Leases & Equity Other Assets Cash Total A
Slide 28: Underfunding for Siemens' pension plans remained largely unchanged
Underfunding for Siemens’ pension plans remained largely unchanged at €-9.0bn in Q4 FY 2015 Funded status for Siemens’ pension plans remained largely unchanged in Q4 Q1 Q2 Q3 Q4 in €bn1) FY 2012 FY 2013 FY 2014 FY 2015 FY 2015 FY 2015 FY 2015 Defined benefit obligation (DBO) on (33.0) (32.6) (35.0)
Slide 29: Financial calendar
Financial calendar November November 12, 2015 Q4 Earnings Release / Analyst Call, Roadshow Germany (Frankfurt) November 13, 2015 Roadshow UK (London) November 17, 2015 Roadshow France (Paris) November 18, 2015 Roadshow U.S. (Boston, New York) December December 8, 2015 Innovation at Siemens (Munich)
Slide 30: Siemens Investor Relations contacts
Siemens Investor Relations contacts Investor Relations Internet: www.siemens.com/investorrelations Email: [email protected] IR- +49 89 636-32474 Hotline: Fax: +49 89 636-32830 © Siemens AG 2015 Page 30 Berlin, November 12, 2015 Q4 FY 2015, Analyst Call