Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Q2 FY2017 Earnings Presentation
28 slides from Siemens Aktiengesellschaft's earnings presentation, May 4, 2017
Slide 1: Another strong quarter – profitable growth continuing
Q2 FY 2017 Another strong quarter – profitable growth continuing Ralf P. Thomas, CFO Q2 FY 2017 Analyst Call | Munich, May 4, 2017 Unrestricted © Siemens AG 2017 siemens.com
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: Another strong quarter – profitable growth continuing
Q2 FY 2017 Another strong quarter – profitable growth continuing • Successful closing of Siemens Gamesa merger and Mentor acquisition • Orders +1% at €22.6bn despite tough comps - excluding €3.1bn Egypt orders up +17% Substantial volume from large orders and base orders clearly up • Accelerated reve
Slide 4: Major orders around the world secure further growth
Major orders around the world secure further growth Energy Management (EM) Wind Power and Renewables (WP) HVDC link India EnBW Hohe See, Germany • India's first HVDC link in VSC1) • 497 MW complete offshore wind technology to support govern- power plant solution ment’s vision of 24x7 power for all •
Slide 5: PG and WP: execution and growth
PG: Stringent execution in a difficult global market environment WP: Capturing growth – excellent margin ahead of merger Power and Gas (PG) Wind Power and Renewables (WP) Orders Revenue Orders Revenue €bn €bn Egypt -38%1) +4%1) project +48%1) 6.2 +4%1) 3.9 3.9 4.1 3.1 3.1 2.1 1.5 1.5 Q2 FY 16 Q2 FY
Slide 6: EM and BT: growth and margin expansion
EM: Growth acceleration and margin expansion BT: Continued outstanding performance across all metrics Energy Management (EM) Building Technologies (BT) Orders Revenue Orders Revenue €bn €bn +17%1) +9%1) +10%1) +10%1) 3.0 3.6 2.7 3.0 1.5 1.6 1.4 1.6 Q2 FY 16 Q2 FY 17 Q2 FY 16 Q2 FY 17 Q2 FY 16 Q2 FY
Slide 7: DF and PD: short cycle momentum and operational progress
DF: Very strong short cycle momentum - clear market share gains PD: Operational progress - realignment continues Digital Factory (DF) Process Industries and Drives (PD) Orders Revenue Orders Revenue €bn €bn +9%1) +11%1) -1%1) +1%1) 2.6 2.9 2.4 2.7 2,3 2,3 2.1 2.2 Q2 FY 16 Q2 FY 17 Q2 FY 16 Q2 FY 17
Slide 8: MO and HC: top line growth and strength in Asia
MO: Stringent execution and resumption of top line growth HC: Solid performance with strength in Asia Mobility (MO) Healthineers (HC) Orders Revenue Orders Revenue €bn €bn +2%1) +2%1) +19%1) +7%1) 3.2 3.4 3.3 3.4 1.8 2.2 1.9 2.0 Q2 FY 16 Q2 FY 17 Q2 FY 16 Q2 FY 17 Q2 FY 16 Q2 FY 17 Q2 FY 16 Q2 FY 17
Slide 9: Volatility at CMPA remains; Mentor & Gamesa PPA effects in H2
Volatility at CMPA remains Mentor & Gamesa with additional PPA-effects in H2 FY 17 Below Industrial Business – Q2 FY 2017 Expectations for H2 FY 2017 in €m • SFS: H2 in line with prior year 3 18 • CMPA: includes other portfolio elements; volatility remains; 2,492 207 H2 broadly in line with prior ye
Slide 10: Significant operational free cash flow improvement
Significant operational free cash flow improvement – Overall more balanced development Free cash flow Industrial Business free cash flow €m +1.4bn €m +32% 738 1,452 1,951 1,477 714 812 84 Q2 FY 16 Q2 FY 17 • Strong free cash flow improvement driven by PG, BT, DF • Net operating working capital incre
Slide 11: Siemens Vision 2020
Siemens Vision 2020 A strong foundation to drive profitable growth Value Scale up • Innovation initiative • Customer and market focus • Digitalization at work Strengthen core • Stringent capital allocation Drive performance • Continuous productivity improvement • Stringent project execution • Fix un
Slide 12: Continuous productivity drives operational performance
Continuous productivity drives operational performance – Siemens Operating Model key to ensure culture of adaptability Gross margin improvement on track Ongoing rigorous total cost productivity +120bps y-o-y in % of total cost base1) At least 4% of ~€4bn total cost base 31.8% ~€3bn 29.9% 28.6% 28.9%
Slide 13: Productivity deep dive: Supply chain management
Productivity deep dive: Supply chain management drives competitiveness SCM performance indicators Ramp up of Cost & Value Engineering on track Cost & Value Engineering (CVE) • Cross functional and divisional approach in €bn • More than 200 CVE-experts operational; >600 planned until 2020 • Teamcente
Slide 14: Software business strengthened by bolt-on acquisition and partnership
Siemens Software business strengthened by small bolt-on acquisition and partnership Mobility – Acquisition of HaCon Energy Management - Partnership with SAP • Implementation of Mobility digitalization strategy to • Global reseller agreement between SAP & Siemens expand intermodal digital offering •
Slide 15: Hanover Fair 2017: frontrunner for the Digital Enterprise
Hanover Fair 2017 Siemens is the frontrunner for the Digital Enterprise Key highlights Digital twin across the entire value chain – for products, for production and complete plants R&D collaboration to digitalize the adidas (Copyright: adidas AG) SPEEDFACTORY Rapid expansion of MindSphere ecosystem
Slide 16: Guidance FY 2017
Guidance FY 2017 EPS (“all-in”) Guidance Update in € We confirm our expectations for fiscal 2017 presented with our results for 7.20 – 7.70 Q1 FY 2017. 6.80 – 7.20 We continue to expect modest growth in revenue, net of effects from currency translation and portfolio transactions, and anticipate that
Slide 17: Appendix
Appendix Unrestricted © Siemens AG 2017 Page 17 Munich, May 4, 2017 Q2 FY 2017 Analyst Call
Slide 18: 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
Slide 19: Siemens Vision 2020: seven overarching goals
Siemens Vision 2020 Clear intents for our seven overarching goals GOAL INTENT KPI Implement stringent company gover- Live lean governance and €1bn cost savings by FY 2016 achieved 1 nance with effective support functions drive continuous optimization Continued productivity of 3-5% Strengthen Sharpen
Slide 20: Financial cockpit – Q2 FY 2017
Financial cockpit – Q2 FY 2017 Orders Revenue Profit Industrial Business (IB) Net Income in €bn +1% Comp. +5% in €bn in €bn (+2%) (nom.) (+6%) +18% 0% 22.3 22.6 2.5 19.0 20.2 2.1 1.5 1.5 11.4% 12.4% B-t-B 1.17 1.12 Margin 10.9% 12.1% Q2 FY 16 Q2 FY 17 Q2 FY 16 Q2 FY 17 Q2 FY 16 Q2 FY 17 Q2 FY 16 Q2
Slide 21: Net debt bridge – Q2 FY 2017
Net debt bridge – Q2 FY 2017 Q2 ΔQ1 • SFS Debt +23.2 +0.0 • Post emp. Benefits -10.5 +0.7 Adj. ind. Net Debt/ • Credit guarantees -0.7 +0.0 EBITDA (c/o) • Fair value adj. +0.5 -0.1 1.2x (Q1 FY17: 0.7x) (hedge accounting) -19.8 Operating Activities -26.0 -13.5 therein a.o.: • Mentor Graphic acquisiti
Slide 22: SFS Key figures – Q2 FY 2017
SFS Key figures – Q2 FY 2017 Key financials SFS • Assets €27.2bn • Income before income taxes €207m • Return on Equity after tax 26.3% • Operating and Investing Cash Flow €171m Assets Liabilities and Equity €bn €bn 1.6 0.2 27.2 27.2 2.7 24.0 1.3 23.2 1.3 Leases & Equity Other Assets Cash Total Asset
Slide 23: Provisions decreased in Q2
Provisions decreased in Q2, mainly due to slightly increased discount rate assumptions and strong equity performance Q2 FY 2017 Key financials – Pension and similar obligations Q1 Q2 in €bn1) FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 Defined benefit obligation (DBO)2) (35.6) (36.8) (42.2) (39.0) (38.4
Slide 24: Executing Vision 2020: underperforming businesses
Executing Vision 2020 Underperforming businesses on track to meet FY 17 expectations Underperforming businesses (~€14.5bn revenue in FY 2016) Fiscal 2013 2014 2015 2016 2017e 2020e Year Footprint adjustments ongoing Profit Sharpened scope -4% -3% +1% +3% ~6% >8% Margin Fiscal 2017 expectations: FY 2
Slide 25: Executing Vision 2020 – Portfolio strengthening continues
Executing Vision 2020 – Portfolio strengthening continues along our strategic imperatives April 16 Siemens Turbomachinery Equipment GmbH 1| Areas of growth? Divestment to Colfax announced Integration ahead of plan Cash consideration of €195m 2| Potential profit pool? March 17 3| Why Siemens? Closing
Slide 26: Merger of Siemens Wind Power and Gamesa closed as planned
Merger of Siemens Wind Power and Gamesa closed as planned Transaction description & rationale Key figures (pro forma, LTM Dec 2016; source prospectus) • Merger of the entire Siemens Wind Power business incl. Service with Gamesa closed on April 3, 2017 Combined business1) • Creation of a global leade
Slide 27: Financial calendar
Financial calendar May 4-5, 2017 Roadshow UK (London) May 8, 2017 Roadshow Germany (Frankfurt) May May 15, 2017 Healthineers Teach-In call (Webcast) May 31, 2017 Roadshow Canada (Toronto) and U. S. (New York) June 16, 2017 June JP Morgan European Capital Goods CEO Conference (London) August 3, 2017
Slide 28: Investor Relations contacts
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 2017 Page 28 Munich, May 4, 2017 Q2 FY 2017 Analyst Call