Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (February 2012)
27 slides from Siemens Aktiengesellschaft's investor day presentation, Feb 14, 2012
Slide 1: Agenda 2013 – Driving winning performance
Agenda 2013 – Driving winning performance Michael Sen CFO Healthcare Sector Capital Market Day Siemens Healthcare London, February 14, 2012 © Siemens AG 2012. All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as ―expects,‖ ―looks forward to,‖ ―anticipates,‖ ―intends,‖ ―plans,‖ ―believes,‖ ―seeks,‖ ―estimates,‖
Slide 3: Agenda 2013 – Driving winning performance
Agenda 2013 – Driving winning performance Agenda 2013 Key takeaways Pre-emptive strike against Quality asset in the Siemens portfolio changing market conditions Low beta at high margins and cash flows started early (summer 2011) Innovation Competitiveness Regional Footprint People Development
Slide 4: Sector Healthcare – High margin business with robust cash earnings
Sector Healthcare – High margin business with robust cash earnings Orders Revenue €bn €bn 12.9 13.1 12.4 12.5 11.8 12.0 11.2 11.9 Growth 1) 3.8% 5.1% 2.1% 1.7% 1.4% 1.7% -3.0% 2.5% Growth 1) FY 2008 FY 2009 FY 2010 FY 2011 FY 2008 FY 2009 FY 2010 FY 2011 Underlying profit Free Cash Flow €bn €bn 1.12
Slide 5: Healthcare Q1 2012 – Decent order growth while free cash flow impacted by PT drain
Healthcare Q1 2012 – Decent order growth while free cash flow impacted by PT drain Orders Revenue €m +3% 1) €m +1% 1) 3,168 (+4%) 3,284 3,135 (+1%) 3,152 Q1 FY 2011 Q1 FY 2012 Q1 FY 2011 Q1 FY 2012 Profit Free Cash Flow €m €m Excluding Particle Underlying profit -8% Therapy €-292m 238 Profit 519 478
Slide 6: Diagnostics Division – Highly attractive business when run at full potential
Diagnostics Division – Highly attractive business when run at full potential Revenue Underlying profit €bn €bn 18.6% 3.7 3.7 Underlying 17.6% 3.5 margin 16.1% 3.2 0.65 13.1% 3.0% 0.59 Growth 1) 0.56 2.5% 0.48 1.5% 0.2% FY 2008 FY 2009 FY 2010 FY 2011 FY 2008 FY 2009 FY 2010 FY 2011 1) Year-on-year o
Slide 7: Diagnostics Q1 2012 – Higher margin on favorable mix
Diagnostics Q1 2012 – Higher margin on favorable mix Revenue Profit €m €m +2% 1) Underlying profit 916 (+1%) 925 Profit +7% 144 135 Underlying 14.7% 15.6% margin: 78 67 Margin: 8.5% 7.3% Q1 FY 2011 Q1 FY 2012 Q1 FY 2011 Q1 FY 2012 1) Year-on-year on a comparable basis, i.e. excluding currency transl
Slide 8: Organic growth with superior incremental returns
Organic growth with superior incremental returns Net Capital Employed Underlying ROCE2) €bn December 31, 2011 12.2 9.8 62% Diagnostics PPA 1.5 Q1 charges: €42m 54% 6.9 42% 5.0 ~80% Goodwill Operating assets 3.3 5.3 1.4 1.0 ~20% Net capital Goodwill & Invest- Net working FY 2009 FY 2010 FY 2011 emplo
Slide 9: Legacy topics will impact next years' cash earnings
Legacy topics will impact next years' cash earnings Agenda 2013 charges Cash flow impact from charges €m €m FY 2015E ~200 FY 2012E FY 2013E FY 2014E and beyond ~25% -80 -50 ~25% -410 -80 -50 -130 ~50% -100 Restruc- Contractual Non-cash Charges -510 turing payments FY 2012E PT Agenda 2013 © Siemens A
Slide 10: Order backlog contributes to revenue streams
Order backlog contributes to revenue streams Order backlog 1) Reach of order backlog €bn €bn 7.3 3.6 7.3 3.2 1.2 3.7 2.9 Total backlog Healthcare Equipment Total backlog FY 2012 FY 2013 Beyond Dec 31, 2011 IT backlog Dec 31, 2011 FY 2013 Therein: Healthcare IT 1) Excludes Service and Diagnostics © S
Slide 11: BRIC / ME have been growth drivers in the last 2 years
BRIC / ME have been growth drivers in the last 2 years Revenue by region Revenue in BRIC / Middle East €m Growth 1) Growth 1) 12,364 12,517 11,927 +15% p.a. 1) Europe, CIS, 4,737 -2%2) 4,533 4,777 -2% ME and Africa 5,155 +4% 5,236 Americas 5,162 -2% Asia, +8% 2,747 1,988 +16% 2,472 Australia FY 2009
Slide 12: China already our second biggest equipment market
China already our second biggest equipment market Imaging equipment orders Growth 2) €m FY 2008 FY 2011 CAGR FY 2008-2011 #1 U.S. 1,421 30%1) #1 U.S. 1,163 23%1) U.S. -6% #2 Germany 363 8%1) #2 China 608 12%1) China +27% #3 China 294 6%1) #3 Japan 419 8%1) Japan +14% #4 Japan 283 6%1) #4 Germany 398
Slide 13: Quality growth drives future service business
Quality growth drives future service business Equipment revenue growth 1) Installed base Revenue share FY 2011 €m Units Service +11% +5% 2) 1,023 1,086 46% 54% FY 2010 FY 2011 FY 2010 FY 2011 Equipment 1) Equipment revenue growth 1) Installed base Revenue share FY 2011 €m Units Service +25% +14% 2)
Slide 14: Increasing exposure to high-growth geographies
Increasing exposure to high-growth geographies Revenue split by customer location Revenue share in emerging markets 1) FY 2011 Emerging Western +800 bps markets1) Europe Therein China: 29% 2) 23% 23% 27% 19% Therein Brazil: 11% 2) 15% Other 13% developed markets 37% North America FY 2005 FY 2008 FY
Slide 15: We have been consistently managing our OPEX
We have been consistently managing our OPEX SG&A 1) R&D €m €m -270 bps -70 bps In % of 19.3% In % of 10.1% revenue 17.5% revenue 9.1% 9.4% 9.0% 16.4% 16.6% 2,160 1,173 73 2,092 1,131 2,077 1,116 29 17 22 1,088 20 2,028 5 16 FY 2008 FY 2009 FY 2010 FY 2011 FY 2008 FY 2009 FY 2010 FY 2011 One-time eff
Slide 16: Lean manufacturing set-up at high gross margins
Lean manufacturing set-up at high gross margins Manufacturing value add 1) Gross margin development 2) 100% ~20% +20 bps ~80% Manufacturing Value add Material costs FY 2009 FY 2010 FY 2011 costs depth 1) Equipment, instruments and reagents 2) Excluding one-time effects © Siemens AG 2012. All rights
Slide 17: Rigorously driving down cost of global supply chain
Rigorously driving down cost of global supply chain Low-cost country purchasing R&D in Low-cost countries Low-cost purchasing volume in % R&D headcount of total purchasing volume in LCC (in %) +250 bps 20.0% 100% ~30% 19.0% 18.5% ~70% 17.5% FY 2009 FY 2010 FY 2011 FY 2012E FY 2011 Low-cost High-cost
Slide 18: Significant reduction of IT costs while increasing business impact
Significant reduction of IT costs while concurrently increasing business impact IT expenses significantly reduced … … while increasing business impact Total IT cost (% of revenue) Ramp-up of Remote Equipment Service Platform Key driver for service growth and efficiency 3.9% Will leverage Diagnos
Slide 19: Cash generation continues to be a key priority
Cash generation continues to be a key priority High impact Cash+ Initiative Resulting Free Cash Flow 1) €bn FCF (12 months rolling) Cash+ initiative 2.2 2.3 2.2 2.0 2.1 1.9 1.9 1.8 Cash+ Organization Cash Management 1.7 Cash Controlling Cash Incentives Cash+ "Brand" 1.5 1.12 1.12 1.13 1.5 1.09 1.3 1
Slide 20: Highly attractive recurring revenue streams
Highly attractive recurring revenue streams Revenue streams Revenue and profit split Imaging modalities Annual service CAPEX 1 OPEX Year 1 Year 2 Year 3 … 40% 50% Software licenses Annual licensing 2 Year 1 Year 2 Year 3 … 60% 50% In vitro diagnostics Reagents / Instrument consumables 3 Revenue Gros
Slide 21: Executing and delivering on our commitments
Executing and delivering on our commitments Resilient business through the cycles - Stable underlying demand - Robust recurrent revenue streams - High barriers to entry Operating in a medium and long-term growth industry Near term growth close to prior years’ level - Solid performance of Imagi
Slide 22: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) To supplement Siemens‘ Consolidated Financial Statements presented in accordance with International Financial Reporting Standards, or IFRS, Siemens presents the following supplemental financial measures: New orders and order backlog; Adjus
Slide 23: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) New orders and order backlog - continued Order backlog represents an indicator for the future revenues of our Company resulting from already recognized new orders. Order backlog is calculated by adding the new orders of the current fiscal yea
Slide 24: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Total Sectors Profit Siemens uses Total Sectors profit to measure the sum of profit of the four Sectors Energy, Healthcare, Industry and Infrastructure & Cities. Profit of the Sectors is earnings before financing interest, certain pension co
Slide 25: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) ROCE (adjusted) – continued ROCE (adjusted) at the Siemens group level on a continuing and discontinued operations basis Siemens also presents group ROCE (adjusted) on a continuing and discontinued operations basis. For this purpose, the nume
Slide 26: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Adjusted EBITDA, adjusted EBIT and adjusted EBITDA margins on a continuing operations basis – continued Adjusted EBITDA margins at the Sector level Siemens defines adjusted EBITDA margins at the Sector level as the ratio of adjusted EBITDA to
Slide 27: Reconciliation and Definitions for Non-GAAP Measures (VI)
Reconciliation and Definitions for Non-GAAP Measures (VI) Limitations on the usefulness of Siemens’ supplemental financial measures The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular: With respect to new orders and order backlog