Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Q4 2021 Earnings Presentation
43 slides from Siemens Aktiengesellschaft's earnings presentation, Nov 11, 2021
Slide 1: Stellar performance and successful start as a focused technology company
Stellar performance and successful start as a focused technology company Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2021 | Investor Relations | Q4 Analyst Call | 2021-11-11
Slide 2: Notes and forward-looking statements
Notes and forward-looking statements This document contains statements related to our future business and incorrect, actual results, performance or achievements of Siemens financial performance and future events or developments involving may (negatively or positively) vary materially from those desc
Slide 3: Agenda
Agenda Stellar FY 2021 Strong finish in Q4 Outlook FY 2022 Page 3 Unrestricted | © Siemens 2021 | Investor Relations | Q4 Analyst Call | 2021-11-11
Slide 4: Guidance raised four times – outstanding performance delivered
Siemens Group Guidance raised four times – outstanding performance delivered +21% +11.5% 71.4 58.0 55.3 62.3 1.15 FY 2020 FY 2021 FY 2020 FY 2021 +59% +29% 6.7 6.4 8.2 All-time high 4.2 FY 2020 FY 2021 FY 2020 FY 2021 Note: Orders and Revenue growth comparable Page 4 Unrestricted | © Siemens 2021 |
Slide 5: Siemens’ businesses delivered high value growth
Siemens’ businesses delivered high value growth Comparable Adj. EBITA margin FY 2021 revenue growth Digital Industries 13% 20.4% [10 – 12%] [20 – 21%] Smart Infrastructure 8% 11.6% [8 – 9%] [11 – 12%] Mobility 3% 9.3% [Mid-single digit] [9.5 – 10.5%] Note: [ ] Outlook as of Q3 FY 2021 Page 5 Unrestr
Slide 6: Stringent execution of DEGREE
Stringent execution of DEGREE China Zero-carbon Pioneer Initiative • Zero carbon in Chinese operations by 2030 Decarbonization • Assisting >500 suppliers and >10,000 customers in low-carbon transition Employability Ethics Lean & Green Management Award • For Electronic Factory Erlangen in category “M
Slide 7: Sustainability - a great business opportunity for Siemens
Sustainability - a great business opportunity for Siemens Decarbonization and resource efficiency key drivers for customer value – • Decarbonization of distributed energy system for • Market for Automation and Digitalization in vertical power, heat and mobility – a blueprint for thousands of farming
Slide 8: Towering strength of Siemens
Towering strength of Siemens High degree of production and supply chain resilience • Pooling of demand and • Agile use of global production global footprint and supply footprint • Close collaboration in expert • Clear escalation paths and networks contingency plans • Powerful digital platforms • Rea
Slide 9: Focused technology company: Stringent capital allocation in future sustainable growth fields
Focused technology company Stringent capital allocation in future sustainable growth fields R&D in % of • SaaS Transition revenue 7.8% ~8% • Future of Industrial Operation R&D in €bn ~5.5 4.9 • Data driven building services 0.3 • Building automation and grid control software 1.5 0.4 T/Other • Levera
Slide 10: Focused technology company: Continuing optimization of portfolio
Focused technology company Continuing optimization of portfolio 1 Areas of growth? 4 Synergetic value? 2 Potential profit pool? 5 Paradigm shift? 3 Why Siemens? 6 Sustainability impact? FY 2021 FY 2022 Siemens Large Drives IPO Carve out started Divestment Siemens Logistics Carve out Split in Parcel
Slide 11: Empowering customers: Moving Egypt
Empowering customers Moving Egypt - A modern, sustainable rail system that will transform the everyday • Bringing state-of-the-art rail technology to Egypt Marsa Matrouh El Alamein Alexandria • Strengthening economy through safe & reliable transport infrastructure New Administrative Capital 6th of O
Slide 12: Empowering customers: Accelerating transformation towards sustainable mobility and cities
Empowering customers Accelerating transformation towards sustainable mobility and cities • Cutting edge design & simulation software and • Buildings consume ~80% of energy supply in ME automation solutions for shift towards e-vehicles • >130 buildings connected by Siemens which will be • Comprehensi
Slide 13: Combining the real and digital worlds: Digital business growth ambitions
Combining the real and digital worlds Siemens Digital Business growth ambitions confirmed €bn • Growth in Software business to ramp up slowly due to SaaS transition related revenue conversion ~10% CAGR • Expected to accelerate after FY 23 • Doubling digital revenue to €1.5bn by FY 2025 5.3 5.6 • Dou
Slide 14: SaaS Transition commenced successfully
Combining the real and digital worlds SaaS Transition commenced successfully €bn • Share of Cloud ARR at 5% in Q4 FY 21; material >10% CAGR acceleration in fiscal 2022 expected • Strong ARR growth across all DI Software businesses +10% • SaaS Transition for PLM business launched on Oct 1 2.9 as plan
Slide 15: Focus on value creation: Outstanding Total Shareholder Return
Focus on value creation Outstanding Total Shareholder Return +45% Siemens TSR Siemens Sep 30, 2021 €141.92 Siemens MSCI World Ind.2 pre Siemens Energy spin-off +29% Sep 25, 2020 €100.681 DAX +22% 2020 2021 Page 15 Unrestricted | © Siemens 2021 | Investor Relations | Q4 Analyst Call | 2021-11-11 Note
Slide 16: Strong finish in Q4: Excellent results across all metrics
Strong finish in Q4 Excellent results across all metrics €19.1bn €17.4bn 13.8% +16% +10% €1.45 €3.8bn 1.5x Note: Orders and Revenue growth comparable Page 16 Unrestricted | © Siemens 2021 | Investor Relations | Q4 Analyst Call | 2021-11-11
Slide 17: Digital Industries: Topline growth highlighting market share gains
Digital Industries (DI) Topline growth highlighting market share gains – excellent free cash flow €bn (excl. Bentley effect of 1370bps in Q4 FY 20) €m +31%1) +90bps 17-23% +8% +15%1) 5.2 1,057 4.5 982 3.9 3.9 19.2% 1.2 19.0% 1.0 1.23 3.4 0.80 2.8 17.9% 18.8% Q4 FY 20 Q4 FY 21 Q4 FY 20 Q4 FY 21 Q4 FY
Slide 18: Digital Industries: Most verticals continue to show positive momentum
Digital Industries (DI) Most verticals continue to show Automotive 20% positive momentum Machine Building 15% Component shortages limit Pharma & Chemicals 10% output in various Food & Beverage 10% customer industries Electronics & Semiconductors 10% 1 Y-o-Y industry revenue development based on indu
Slide 19: Digital Industries: Broad based demand across regions
Digital Industries (DI) Broad based demand across China +61% +21% Topline continued on high levels especially in short-cycle business regions drove Strong finish in both, Discrete and strong topline finish Germany +49% +21% Process Remained strong on high previous Italy +42% +15% quarter level Solid
Slide 20: Smart Infrastructure: Strong top-line, continuing margin improvement
Smart Infrastructure (SI) Strong top-line, continuing margin improvement and outstanding cash conversion €bn (excl. disposal gain of 410bps in Q4 FY 20) €m +9%1) +7%1) 10-15% +100bps +2% 4.2 3.9 4.2 3.8 884 901 1.4 1.6 12.4% 12.1% 1.78 12.0% 1.51 2.5 2.6 11.0% Q4 FY 20 Q4 FY 21 Q4 FY 20 Q4 FY 21 Q4
Slide 21: Smart Infrastructure: Top line driven by strength in United States & Germany
Smart Infrastructure (SI) Top line driven by Order strength in Systems strength in United China +3% -6% Tough comps for revenue, sequentially stable States & Germany Germany +12% +7% Growth in Services and Products Resilient supply EMEA Strong Products and Systems, +6% +5% chain and delivery excl. G
Slide 22: Smart Infrastructure: Market recovery ongoing
Smart Infrastructure (SI) Market recovery ongoing 44% Buildings • Building markets continue recovery – headwinds 27% from US non-residential construction market Electrification • Electrification markets with solid growth – driven by renewable integration trend and increasing electricity needs Portfo
Slide 23: Mobility: Strong order intake, great cash flow
Mobility (MO) Strong order intake, great cash flow; revenue and profitability still impacted by Covid-19 €bn €m +31%1) +1%1) +182% -90bps 9-12% 2.8 2.4 2.5 1,246 2.1 0.4 0.4 10.0% 9.2% 442 5.50 2.1 2.2 9.9% 9.0% 1.83 Q4 FY 20 Q4 FY 21 Q4 FY 20 Q4 FY 21 Q4 FY 20 Q4 FY 21 Q4 FY 20 Q4 FY 21 • Large ord
Slide 24: Financial Services: Significant improvement of profitability
Financial Services (SFS) Significant improvement of profitability driven by Debt Business Therein: Return on Equity 11.7% 15.4% 9.5% 16.0% 27.3% 20.4% (after tax) Earnings before 512 483 345 279 82 taxes (€m) 120 128 1 49 Total assets (€bn) 30.4 28.9 30.4 28.5 27.0 28.5 1.7 1.8 1.7 Q4 FY21 FY20 FY21
Slide 25: Brilliant cash performance – Industrial Businesses close to €10bn
Brilliant cash performance – Industrial Businesses close to €10bn €m +38% • Strong finish in fourth quarter on stringent operating 9,847 working capital management 7,142 0.69 1.03 1.04 1.68 2,420 3,816 1.12 • All four businesses with cash conversion rate 0.94 1,468 2,144 clearly >1 in FY 2021 despit
Slide 26: ROCE and capital structure ratio ahead of plan in target ranges
ROCE and capital structure ratio ahead of plan in target ranges ROCE, excluding Industrial net debt/ up to Varian-related M&A effects 15–20% EBITDA 1.5x 15.1% 12.7% 11.1% 1.3x 1.5x 7.8% 0.4x 0.6x FY 2018 FY 2019 FY 2020 FY 2021 mid-term FY 2018 FY 2019 FY 2020 FY 2021 mid-term • Focus on profitable
Slide 27: Stringent capital allocation with attractive shareholder returns
Stringent capital allocation with attractive shareholder returns in € CAGR +8% Spin-off 1 €3.50 €3.60 €3.70 €3.80 €3.90 €3.50 €4.00 €3.00 €3.00 €3.00 €3.30 €2.70 €1.60 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY17 FY18 FY19 FY 20 FY 21 in €bn New • Share buyback program 2018 – 2021 successful
Slide 28: Assumptions for fiscal 2022
Assumptions for fiscal 2022 • Continuing healthy growth in global GDP, albeit slowing momentum • Complex environment remains, easing challenges from Covid-19 & supply Business environment chain constraints during FY 22 • Balancing of cost inflation with pricing measures by H2 FY 22 • R&D intensity t
Slide 29: Outlook Below Industrial Businesses
Outlook Below Industrial Businesses SFS Further improvement, RoE in lower half of target range 15 – 20% POC Fully owned businesses >5% margin, equity investment remains negative SE Investment Performance improvement of net income share, PPA-effects of ~-€0.1bn Innovation On FY 2021 level, ~-€0.2bn G
Slide 30: Outlook FY 2022
Outlook FY 2022 Comparable Book-to-bill >1 Profit margin revenue growth Revenue growth Mid-single Digital Industries 5 – 8% 19 – 21%1) (Comparable) digit EPS pre PPA €8.70 – €9.10 Smart Infrastructure 5 – 8% 12 – 13% [FY 2021: €8.32] Mobility 5 – 8% 10.0 – 10.5% This outlook excludes burdens from le
Slide 31: Milestones until fiscal 2023 – Focus on execution
Milestones until fiscal 2023 – Focus on execution Continuous Portfolio optimization Stringent SaaS-Transition Ongoing deleveraging FY 2023 Stringent execution of competitiveness programs FY 2023 Ambitious profitability targets for businesses Page 31 Unrestricted | © Siemens 2021 | Investor Relations
Slide 32: Questions and Answers
Questions and Answers Page 32 Unrestricted | © Siemens 2021 | Investor Relations | Q4 Analyst Call | 2021-11-11
Slide 33: Appendix
Appendix Page 33 Unrestricted | © Siemens 2021 | Investor Relations | Q4 Analyst Call | 2021-11-11
Slide 34: Below Industrial Businesses: Portfolio Companies break even
Below Industrial Businesses Portfolio Companies break even, significant Thoughtworks revaluation gain €m 120 3 -195 2,273 4 -224 -187 Minorities 47 -571 €163m Therein: +€260m 1,269 60 1,330 Revaluation gain Thoughtworks -€60m Tax Rate Revised estimates @ 31% related to provisions 1,167 for legacy pr
Slide 35: New financial framework - comparable key figures FY 2021
New financial framework - comparable key figures FY 2021 related to changes in KPI definitions and reconciling items P rofit P rofit margin Q1 Q2 Q3 Q4 Fis cal year Q1 Q2 Q3 Q4 Fis cal year (in millions of €) 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 Digital Indus tries 849 811 847 852 3,360
Slide 36: Below Industrial Businesses: Outlook in new structure
Below Industrial Businesses Outlook in new structure FY 2021 (€m) Expectation for FY 2022 Profit Ind. Business 8,786 SFS 512 Further improvement, RoE in lower half of target range 15 – 20% POC -84 Fully owned businesses >5% margin, equity investment remains negative SE Investment -396 Peformance imp
Slide 37: Reconciliation FY EPS to EPS pre PPA
Reconciliation FY 21 EPS to EPS pre PPA €m / per share amounts in € All in Attributable to Attributable to EPS / EPS non-controlling shareholders of effect 4) interests Siemens AG Net income / EPS (all-in) 6,697 537 6,161 7.68 PPA 1) 738 61 2) 677 0.84 Tax effect 3) -169 -0.21 EPS pre PPA 8.32 Outlo
Slide 38: Net debt bridge Q4 FY 2021
Net debt bridge Q4 FY 2021 Ind. Net Debt/ EBITDA (c/o) in €bn Operating Activities therein: 1.5x (Q3 FY21: 1.9x) • Acquisition of businesses -0.6 therein: • CAPEX -0.6 38.4 • ∆ Inventories +0.3 37.0 13.9 • SFS investments -0.3 • ∆ Trade and other receivables -0.2 • ∆ Trade payables +0.7 • ∆ Contract
Slide 39: Provisions for pensions slightly improved in Q4
Provisions for pensions slightly improved in Q4, mainly due to increase in discount rate Q FY 2020 – Pensions and similar obligations FY FY Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY in €bn¹ 2018 2019 2020 2020 2020 2020 2021 2021 2021 2021 Defined benefit obligation (DBO)² -35.9 -40.3 -39.2 -3
Slide 40: 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 Q4 FY21 FY21 SHS EBIT (adjusted) 793 15.3% 3,142 17.4% PPA (SHS logic)1 -141 -381 Transaction, Integration, Retention, carve-out cost -14 -123 Gains and losses from divestmen
Slide 41: Outlook FY2022 as presented by Siemens Healthineers
Outlook FY 2022 as presented by Siemens Healthineers on November 4, 2021 Outlook FY2022 Comparable revenue growth1, 2 Adj. basic earnings per share2 19.3% Growth ex antigen: 17 to 23% €2.08 to €2.20 €2.03 Ex antigen: 5 to 7% Antigen ~7.5% 0 to 2% Antigen accretion accretion ~€0.30 2021 2022E 2021 20
Slide 42: Siemens Financial Framework as of FY 2022
Siemens Financial Framework as of FY 2022 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 Inf
Slide 43: Financial calendar and Investor Relations Contacts
Financial calendar November 12, 2021 January 11, 2022 JP Morgan Digital Commerzbank Twin Conference Conference November 11 November 12–25 February 10, 2022 Q4 Earnings Q4 Roadshow Q1 Earnings Release Release and AGM Investor Relations Contacts Eva Riesenhuber Tobias Atzler Alexander Wende Head of In