Siemens Healthineers Ag · XETR:SHL

Siemens Healthineers — Q2 FY2020 Earnings Presentation

19 slides from Siemens Healthineers's earnings presentation, May 5, 2020

  1. Slide 1: Q2 Analyst Call

    Q2 Analyst Call Dr. Bernd Montag, CEO | Dr. Jochen Schmitz, CFO May 5, 2020

  2. Slide 2: Safe Harbour Statement

    Safe Harbour Statement This presentation has been prepared solely for use at this meeting. This material is given in conjunction with an oral presentation and should not be taken out of context. By attending the meeting where this presentation is held or accessing this presentation, you agree to be

  3. Slide 3: Strong Q2 performance despite COVID-19 impacts

    Strong Q2 performance despite COVID-19 impacts • Q2 comparable1 revenue up by 3.3%, impacted by COVID-19 by ca. -4%-pts • Strong growth1 in Imaging with 5.8% and Advanced Therapies with 5.7% • Equipment book-to-bill of 0.94 in Q2 • Diagnostics with -2.2% revenue decline1, drop-through to margin on l

  4. Slide 4: Our portfolio plays a significant role along the entire COVID-19 patient pathway

    Our portfolio plays a significant role along the entire COVID-19 patient pathway1 Digital solutions – remote operations and services – artificial intelligence Hospital staff protection and capacity management Q2 FY2020 1 This pathway is for illustration purposes only Unrestricted © Siemens Healthine

  5. Slide 5: COVID-19 impact in Q2 – significant differences between regions

    COVID-19 impact in Q2 – significant differences between regions USA EMEA China Travel restrictions impact 2nd half of Hospitals allocate time and resources Rapid progress on fighting COVID-19 March on COVID-19 care, restrict access Emphasis on COVID-19 treatment – Delay of installations and reduced

  6. Slide 6: Resilient topline drives EPS growth despite COVID-19; clear improvement vs. Q1

    Resilient topline drives EPS growth despite COVID-19; clear improvement vs. Q1 Revenue (€m) Adjusted basic earnings per share (€) Net Income 381 414 Comparable (€m) +3.3% Growth1 Y-o-Y +11% 3,505 3,685 0.45 0.41 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 • Revenue driven by strong growth in Imaging and

  7. Slide 7: Imaging and Advanced Therapies strong despite COVID-19

    Imaging and Advanced Therapies strong despite COVID-19 Imaging (€m) Diagnostics (€m) Advanced Therapies (€m) Comparable +5.8% -2.2% +5.7% Growth1 Revenue 2,137 2,309 1,018 1,005 391 421 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 Margin Y-o-Y +200 bps -510 bps -110 bps Adj. EBIT 528

  8. Slide 8: Sound financial framework; retaining financial flexibility in the crisis

    Sound financial framework; retaining financial flexibility in the crisis Resilient Cash Generation (€m) Healthy Balance Sheet (€bn) Cash Conversion 0.39 0.60 Leverage 1.7x 2.1x rate +45% 605 6.4 418 4.6 Free Cash Flow Net debt pre-tax1 incl. pension H1 FY2019 H1 FY2020 31-Mar-2019 31-Mar-2020 • Resi

  9. Slide 9: Timing and intensity of recovery determine COVID-19 impacts in H2 and beyond

    Timing and intensity of recovery determine COVID-19 impacts in H2 and beyond Comparable revenue growth1 (indicative graph only, not to scale) • Fundamental growth drivers remain intact Pent-up demand • Q2 FY20 with limited impact, current thinking is: >5% Q1 FY20 trough expected in Q3 FY20 𝐆rowth…

  10. Slide 10: Little pent-up demand at Diagnostics, yet some upside from new in-vitro products

    Little pent-up demand at Diagnostics, yet some upside from new in-vitro products Comparable1 Revenue growth (indicative graph only, not to scale) • Fundamental growth drivers remain intact Pent-up demand • Q2 with limited impact, current thinking is: Q3 >5% Q1 20 expected to be trough 𝐆rowth Q2 20…

  11. Slide 11: Outlook for FY2020 no longer valid from today’s perspective

    Outlook for FY2020 no longer valid from today’s perspective Comparable revenue growth1) Adj. basic EPS growth 5 - 6% +8 to +14%2) ex acquisitions3) 5.8% +6 to +12%2) Due to the COVID-19 pandemic, the assumptions underlying our original forecast for fiscal year 2020 are to a large extent no 1.70 long

  12. Slide 12: Appendix

    Appendix Q2 FY2020 Unrestricted © Siemens Healthineers AG, 2020 l 12

  13. Slide 13: Free cash flow in Q2 held back by inventory build-up

    Free cash flow in Q2 held back by inventory build-up Q2 Siemens Healthineers EBIT to Free Cash Flow (€m) Imaging 0.6 CCR1 Diagnostics <0 Adv. Therapies 0.4 CCR1) 0.41 786′ 186′ -195′ 600′ -204′ 376′ -75′ 64′ -130′ 245′ -163′ 83′ Healthineers Amortization, EBITDA Change in Change in Add. to Other Ope

  14. Slide 14: Q2 reconciliations and KPIs for group and segments

    Q2 reconciliations and KPIs for group and segments Q2 FY2020 Q2 FY2019 Advanced Advanced Healthineers Imaging Diagnostics Healthineers Imaging Diagnostics Position (€m) Therapies Therapies Adjusted EBIT 659 528 65 78 624 447 118 77 therein adjusted for: Amortization of intangible -42 - - - -32 - - -

  15. Slide 15: Q2 adjusted EBIT to net income and adj. basic EPS reconciliation

    Q2 adjusted EBIT to net income and adj. basic EPS reconciliation Position (€m) Q2 FY2020 Q2 FY2019 Adjusted EBIT 659 624 therein adjusted for: Amortization of intangibles assets acquired in business combinations -42 -32 therein adjusted for: Severance charges -17 -12 therein adjusted for: Acquisitio

  16. Slide 16: Q2 balance sheet and net debt bridge

    Q2 balance sheet and net debt bridge Net debt overview Capital structure development in Q2 YTD FY2020 (in €bn) in €bn Sep. 30th 2019 Mrz. 31st 2020 Leverage1 1.4x2 2.1x 6.4 Cash and cash equivalents 0.9 0.8 1.0 Receivables from Siemens Group 0.7 0.3 (financial cash) 4.4 1.0 Short-term and long-term

  17. Slide 17: SHS loan maturity profile

    SHS loan maturity profile SHS loans with Siemens Group as of 31.03.20201 (€m) Comments 1,863 ▪ Total loan volume ~5’’0 EUR equivalent Other 92 ▪ Average interest rate ~0.8%3 EUR ▪ All maturities exceeding FY 2020 USD 1,5142 1,000 Top 5 loans 903 Volume Interest 6672 Currency Volume Maturity in € rat

  18. Slide 18: Funded status unchanged

    Funded status unchanged Q2 FY2020 Key financials – Pensions and similar obligations (€bn) Q1 Q2 Positions1) FY2017 FY2018 FY2019 FY2020 FY2020 Defined benefit obligation (DBO)2) (4.1) (3.4) (3.8) (3.7) (3.6) Fair value of plan assets2) 2.4 2.6 2.8 2.8 2.6 Provisions for pensions and similar obligati

  19. Slide 19: Q2 FY2020 Unrestricted © Siemens Healthineers AG, 2020 l 19

    Q2 FY2020 Unrestricted © Siemens Healthineers AG, 2020 l 19

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