Slide 1: Strong operational performance and growth, outlook confirmed
Strong operational performance and growth Outlook confirmed Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2022 | Investor Relations | Q2 Analyst Call | 2022-05-12
Slide 2: Notes and forward-looking statements
Notes and forward-looking statements This document contains statements related to our future business and future events occur at a later date or not at all or assumptions prove financial performance and future events or developments involving incorrect, actual results, performance or achievements of
Slide 3: Swift action to support Ukraine
Swift action to support Ukraine People centered approach • ~180 employees at six sales and engineering hubs Two software platforms for direct help from Siemens employees to affected • Safety and wellbeing key priority colleagues through in-kind donations • Local support and accommodation for affecte
Slide 4: Wind down of Siemens' industrial business in Russia
Wind down of Siemens’ industrial business in Russia Mostly non-cash effective • ~3,000 employees • In total -~€600m on net income due to impairments, write- • ~1% of global Siemens revenue offs and charges • Mobility with largest footprint, long-term project and • Mainly Mobility affected service bu
Slide 5: Q2 Highlights in a volatile environment
Q2 Highlights in a volatile environment Successful strategy execution, guidance confirmed, stringent cash performance • Strategic initiatives well on track: Grow digital, drive sustainability, simplify portfolio • Guidance confirmed: Impact from Russia compensated by portfolio gains, Parcel closing
Slide 6: Strong operational performance, excellent free cash flow
Strong operational performance Excellent free cash flow €21.0bn €17.0bn 11.0% 14.6% +22% +7% excl. Russia impact €1.50 €2.21 excl. Russia €1.3bn 1.6x impact Note: Orders and Revenue growth comparable Page 6 Unrestricted | © Siemens 2022 | Investor Relations | Q2 Analyst Call | 2022-05-12
Slide 7: Our addressable markets are driven by secular trends
Our addressable markets are driven by secular trends Attractive adjacent markets in digital area Basis 2021 • High energy and raw material prices drive investment in decarbonization, energy and resource efficiency • Labor shortage and higher focus on resilience of Future markets supply chains benefi
Slide 8: Healthy order backlog a source of strength and resilience
Healthy order backlog a source of strength and resilience €bn • Majority of H2 revenue already secured in backlog 27 • Record reach of orders on hand for short-cycle product businesses in DI and SI 25 • High quality due to advance payments also 94 related to product orders • Resilience from long-ter
Slide 9: Siemens Digital Business growth ambitions reinforced
Combining the real and digital worlds Siemens Digital Business growth ambitions reinforced €bn • SaaS transition accelerating • Mendix with rapid growth >30% in H1 22 ~10% CAGR • Supplyframe integration and performance ahead of plan • Dedicated Grid Software unit with specific set-up 5.3 5.6 • Launc
Slide 10: SaaS transition clearly accelerating in Q2
Combining the real and digital worlds Successful strategy execution – SaaS transition clearly accelerating in Q2 €bn +13%1) • All major products cloud enabled, further investments 3.1 for cloud native SaaS applications 3.0 2.7 • Adoption rising with focused customer success & sales activities; ~44%
Slide 11: Empowering customers: sustainability at the core of our businesses
Empowering customers Sustainability at the core of our businesses Digital twin to $100m capital 50 Vectron industrialize underwater farming program together with SFS to support locomotives suited for sustainable biosphere as resource efficient U. S. based SMEs jumpstart high-speed travel alternative
Slide 12: Focus on Sustainability: stringent execution of DEGREE
Focus on Sustainability Stringent execution of DEGREE Participation for employees and community Decarbonization • High participation rate in share matching plans, >180k employees as shareholder Employability Ethics • Siemens Foundation & Northern Trust: $10m invest in underserved community developme
Slide 13: Digital Industries (DI)
Digital Industries (DI) Excellent topline and free cash flow, accelerated SaaS-transition impacts margin €bn €m +32%1) 5.9 -200bps 17-23% +9%1) +2% 4.3 4.6 1,015 1,030 4.0 1.0 22.1% 18.5% 1.1 3.5 1.25 1.25 2.9 20.1% 18.1% Q2 FY 21 Q2 FY 22 Q2 FY 21 Q2 FY 22 Q2 FY 21 Q2 FY 22 Q2 FY 21 Q2 FY 22 • Exce
Slide 14: Digital Industries: healthy growth momentum continuing
Digital Industries (DI) Healthy growth momentum Automotive 20% continuing, Automotive Machine Building 15% normalization on high level Pharma & Chemicals 10% Food & Beverage 10% Electronics & Semiconductors 10% 1 Y-o-Y industry revenue development based on industry production data from statistical o
Slide 15: Very strong order dynamics in automation across regions
Digital Industries (DI) Very strong order dynamics in China +27% +25% Continued high demand and output automation across Strong order momentum regions and Germany +37% +8% Revenue up double digit in Discrete businesses Excellent topline performance, Italy +37% +23% driven by Discrete Strong orders,
Slide 16: Smart Infrastructure (SI)
Smart Infrastructure (SI) Strong growth trajectory, margin increase held back by Russia and pandemic €bn €m +22%1) 11-16% 5.0 +8%1) +30bps -29% 4.0 4.0 3.6 463 0.9 0.8 11.4% 11.3% 330 3.1 11.1% 1.20 2.8 10.8% 0.74 Q2 FY 21 Q2 FY 22 Q2 FY 21 Q2 FY 22 Q2 FY 21 Q2 FY 22 Q2 FY 21 Q2 FY 22 • Electrical P
Slide 17: Smart Infrastructure: broad based order strength
Smart Infrastructure (SI) Broad based order strength China +3% -3% Revenue impacted by recent lockdowns Broad based order growth, Clear revenue Germany +13% +4% Revenue up on Electrical Products growth driven by EMEA Orders up double-digit across all +23% +9% Products excl. Germany & Middle East bus
Slide 18: Smart Infrastructure: positive market trend in most verticals
Smart Infrastructure (SI) Positive market trend in most verticals Commercial Buildings 25% Commercial buildings with some moderation Public Sector / Education 10% Power Distribution 5% Electrical & Electronics 5% Healthcare 5% 1 Y-o-Y vertical market development, majority of distributor Data Centers
Slide 19: Mobility (MO)
Mobility (MO) Massive effects from sanctions on Russia, solid operational performance €bn Impact Russia: 10 - 13% €m +13% 1) ~-10ppts 2.5 >100% 2.1 -9%1) 9.2% 8.7% 2.3 2.1 9.0% 8.4% 140 0.4 0.4 >1 7 1.9 1.7 Impact Russia: ~-25.7ppts 0.03 -17.3% Q2 FY 21 Q2 FY 22 Q2 FY 21 Q2 FY 22 Q2 FY 21 Q2 FY 22 Q
Slide 20: Below Industrial Businesses
Below Industrial Businesses Solid SFS performance, Valeo Siemens gain; burdened by Siemens Energy Investment • SFS: Solid performance impacted by €m charges related to sanctions imposed on 95 -260 138 Minorities Russia 1,777 -541 €179m Therein: Therein: Other Below IB items -€57m -€67m 1,209 4 1,213
Slide 21: Strong and consistent free cash flow performance
Strong and consistent performance €m • Stringent working capital management in H1 despite -7% supply chain constraints and inventory build 3,612 3,345 • All businesses contributing to free cash flow; 1,910 Digital Industries outstanding with excellent conversion 0.85 1,435 0.79 0.58 1.07 of 1.25 H1
Slide 22: P&L impact due to Russia effects clearly visible
P&L impact due to Russia effects clearly visible ROCE1) Target Industrial net debt/ 15 - 20% EBITDA Target 16.4% Up to 1.5x 13.2% 21.2% 14.0% 1.9x 12.4% 11.1% 1.5x 1.6x 1.4x 1.1x Therein impact Russia: 0.6x FY 21: 15.2% ~460bps Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY 22 Q2 FY 22 Q1 FY 21 Q2 FY 21
Slide 23: Closing of Parcel Logistics divestment now in H2 expected
Closing of Parcel Logistics divestment now in H2 expected Business Line item Financial impact Timing of Impact Yunex Traffic Mobility €0.6bn - €0.8bn H2 FY 2022 (minimal tax impact) Parcel Logistics Portfolio Companies €0.8bn - €1.0bn H2 FY 2022 (post-tax gain) Valeo Siemens €0.3bn Q2 FY 2022 Portfo
Slide 24: Below Industrial Businesses: updated outlook
Below Industrial Businesses Updated outlook FY 2021 H1 FY 22 Expectation for FY 2022 Profit Ind. Business 8,786 4,237 SFS 512 335 Incl. Q2 Russia impact, operative RoE in lower part of target range 15 – 20% POC -84 352 ~€1.4 – 1.6bn, on successful strategy execution and value creation SE Investment
Slide 25: Outlook FY 2022 for Siemens Group confirmed
Outlook FY 2022 for Siemens Group confirmed Comparable Book-to-bill >1 Profit margin revenue growth Revenue growth 6 – 8% 9 – 12% Digital Industries 19 – 21%1) (Comparable) [prior: Mid-single digit] [prior: 5 – 8%] EPS pre PPA €8.70 – €9.10 Smart Infrastructure 6 – 9% 12 – 13% [FY 2021: €8.32] [prio
Slide 26: Questions and Answers
Questions and Answers Page 26 Unrestricted | © Siemens 2022 | Investor Relations | Q2 Analyst Call | 2022-05-12
Slide 27: Appendix
Appendix Page 27 Unrestricted | © Siemens 2022 | Investor Relations | Q2 Analyst Call | 2022-05-12
Slide 28: Below Industrial Business
Below Industrial Business Solid SFS performance, Valeo Siemens gain; burdened by Siemens Energy Investment €m 324 -67 -43 -39 -88 -31 -260 138 Minorities 1,777 39 -541 €179m Therein: -€52m Therein: Russia related +€292m Therein: 1,209 4 1,213 effects Valeo Siemens +€177m effect Ruble Hedging effects
Slide 29: Financial Services: solid H1 FY22 performance
Financial Services: Solid H1 FY 22 performance despite charges subsequent to sanctions imposed on Russia Key figures SFS total Therein: Debt Business Equity Business Return on Equity Incl. -€57m 17.1% 19.8% Incl. -€57m Incl. -€57m 16.3% 15.2% Incl. -€57m 29.5% 51.1% (after tax) Russia Russia Russia
Slide 30: Net debt bridge Q2 FY 2022
Net debt bridge Q2 FY 2022 Ind. Net Debt/ EBITDA (c/o) €bn Operating Activities 1.6x (Q1 FY22: 1.4x) 36.8 therein: therein: 40.2 15.5 • ∆ Inventories -0.5 • CAPEX -0.5 • ∆ Trade and other receivables +0.0 • SFS investments -0.3 • ∆ Trade payables +0.4 • ∆ Contract Assets/Liabilities +0.8 therein: 24
Slide 31: Siemens with sound re-financing profile
Siemens with sound re-financing profile Long-term funding secured at attractive rates Loan and bond maturity profile as of March 31, 2022 in EUR bn 5.9 5.2 5.2 3.9 3.7 3.1 2.9 2.4 2.0 1.8 1.6 1.4 1.4 1.0 0.9 0.8 0.8 0.8 0.8 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2
Slide 32: Provisions for pensions on historic low
Provisions for pensions on historic low, however some negative effects from inflation to be reflected at FY end with actuarial assessments Q FY 2020 – Pensions and similar obligations Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY in €bn¹ FY 2019 FY 2020 2021 2021 2021 2021 2022 2022 Defined benefit obligation
Slide 33: Profit Bridge from SHS disclosure to SAG disclosure
Profit Bridge from SHS disclosure to SAG disclosure Different profit definitions at SHS and SAG to be considered in models €m Q2 FY 22 H1 FY 22 SHS EBIT (adjusted) 980 17.9% 1,879 17.8% PPA (SHS logic)1 -186 -361 Transaction, Integration, Retention, carve-out cost -11 -26 Gains and losses from dives
Slide 34: Outlook FY 2022 as presented by Siemens Healthineers
Outlook FY 2022 as presented by Siemens Healthineers on May 4, 2022 Page 34 Unrestricted | © Siemens 2022 | Investor Relations | Q2 Analyst Call | 2022-05-12
Slide 35: Siemens Financial Framework
Siemens Financial Framework Targets over 3 – 5 year cycle 1 – comp. 5–7% comparable 15–20% revenue Cash conversion growth ROCE1 growth rate rate (all in)2 High Progressive up to single-digit dividend growth EPS pre PPA 1.5x Industrial net policy debt/EBITDA Digital Industries Smart Infrastructure Mo
Slide 36: Financial calendar and Investor Relations contacts
Financial calendar May 12, 2022 May 17 - 18, 2022 May 24, 2022 June 1, 2022 August 11, 2022 Q2 Earnings Roadshow Roadshow Hanover Fair Q3 Earnings Release U.S. France Release May 13, 2022 May 23, 2022 May 25, 2022 June 9, 2022 Roadshow Roadshow Roadshow JP Morgan UK Germany Switzerland Conference In