Slide 1: Outstanding performance continues – Outlook raised again
Outstanding performance continues – Outlook raised again Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2023 | Investor Relations | Q2 Analyst Call | 2023-05-17
Slide 2: Notes and forward-looking statements
Notes and forward-looking statements This document contains statements related to our future business and or not at all or assumptions prove incorrect, actual results, performance or financial performance and future events or developments involving achievements of Siemens may (negatively or positive
Slide 3: Q2 Business highlights
Q2 Business highlights Execution at its best • Robust demand: Book-to-bill 1.22, backlog €105bn at record level Accelerating topline • Exceptional revenue growth: DI, SI and Mobility all up >20% • Competitive strength: DI Automation revenue up 26%, SI EP up 28% • Successful backlog conversion: DI &
Slide 4: Q2 Key Financials: Strength across all metrics
Q2 Key Financials Strength across all metrics €23.6bn €19.4bn 14.2% +15% +15% €2.56 €4.57 incl. SE €2.3bn 1.0x impairment reversal Note: Orders and Revenue growth comparable Page 4 Unrestricted | © Siemens 2023 | Investor Relations | Q2 Analyst Call | 2023-05-17
Slide 5: Further increased order backlog providing clear visibility for H2 and beyond
Further increased order backlog providing clear visibility for H2 and beyond Stringent execution to leverage easing supply chains €bn • Strong commercial activity in systems, 105 30 solution and service businesses DI 14 8 8 • Normalization of order patterns in product 5 SI 16 7 businesses 1 • Furthe
Slide 6: Mid-term attractive Siemens markets with expected annual growth of ~7% until FY 2027
Mid-term attractive Siemens markets with expected annual growth of ~7% until FY 2027 Secular trends and increasing relevance for our customers €bn Therein: • All businesses benefitting from favorable CAGR “Real-world” secular growth themes +7% 684 market ~6% CAGR • Backlog execution drives growth in
Slide 7: Targeted investments to leverage global opportunities
U.S., EU, China and India account for ~60% of market growth contribution until 2027 Targeted investments to leverage global opportunities Capacity optimization and expansion +29bn Twin factories for Factory Automation and Motion Control Flexibility & Localization +47bn +23bn Expand SI footprint for
Slide 8: Hanover Fair – Accelerate Transformation with Siemens Xcelerator
Hanover Fair – “Accelerate Transformation” with Siemens Xcelerator Exciting product launches, expanding ecosystem and great customer engagement Siemens Xcelerator – open digital business platform is expanding • Launch of Industrial Operations X for a more adaptive production • New use cases at Build
Slide 9: Combining the real and digital worlds: Siemens Digital Business
Combining the real and digital worlds Siemens Digital Business with strong growth trajectory €bn • Strategic partnerships with e. g. NVIDIA, Bentley, AWS, Microsoft, SAP ~10% CAGR • Pilots for Industrial Metaverse & adopting Generative AI 6.5 • SaaS-transition in full swing 5.3 5.6 • Industrial Oper
Slide 10: SaaS-transition fully on track, making inroads to SME customers
Combining the real and digital worlds SaaS-transition fully on track, making inroads to SME customers €bn +14%1) # Customers (accumulated): ~7,520 Therein 74% 3.3 3.6 3.5 3.6 new customers 2.9 3.0 3.1 Target: ~5,450 ~40% ~3,100 by FY 25 ~2,350 81% ~500 ~1,250 74% 79% SME customers 5% 6% 9% 12% 15% 1
Slide 11: Drive sustainability building on strong domain know-how and core technologies
Drive sustainability building on strong domain know-how and core technologies Collaboration across Siemens for superior customer value Integrated digital engineering platform for Smart gigafactory with fully digitalized efficient product development and lifecycle infrastructure and automation for re
Slide 12: Achieving sustainability impact is deeply embedded in company culture
Achieving sustainability impact is deeply embedded in company culture Foundation of Cofinity-X German Innovation Award • Ten partners of the automotive industry • Air-free brake system • Open marketplace with secure data • Saves installation space, weight and exchange compressed air consumption • En
Slide 13: Digital Industries (DI)
Digital Industries (DI) Very dynamic backlog execution with outstanding profitability and cash €bn €m -10%1) +23%1) +540bps 5.9 5.5 17-23% +14% 5.3 4.6 1.2 1,180 1.0 1,030 18.5% 23.8% 3.5 4.4 1.25 0.91 18.1% 23.5% Q2 FY 22 Q2 FY 23 Q2 FY 22 Q2 FY 23 Q2 FY 22 Q2 FY 23 Q2 FY 22 Q2 FY 23 • Normalizatio
Slide 14: Digital Industries: Continued growth in all vertical end markets
Digital Industries (DI) Continued growth in all vertical end markets, supported by backlog Automotive 20% execution Machine Building 15% Pharma & Chemicals 10% Food & Beverage 10% Electronics & Semiconductors 10% 1 Y-o-Y industry revenue development based on industry production data from statistical
Slide 15: Digital Industries: Normalization of demand as expected
Digital Industries (DI) Normalization of demand as expected Topline with tough comps & some China -31% +9% Covid aftermath; orders normalizing; +27% +25% Clear revenue growth on high level Easing supply Orders normalizing on tough comps; Germany -21% +37% Outstanding revenue growth on constraints an
Slide 16: Smart Infrastructure (SI)
Smart Infrastructure (SI) Excellent topline delivers major boost for record profitability, strong cash conversion €bn €m +9%1) +480bps +21%1) +141% 5.5 11-16% 5.0 4.9 796 4.0 1.0 0.9 11.3% 16.1% 330 3.1 3.9 15.9% 1.02 11.1% 0.74 Q2 FY 22 Q2 FY 23 Q2 FY 22 Q2 FY 23 Q2 FY 22 Q2 FY 23 Q2 FY 22 Q2 FY 23
Slide 17: Smart Infrastructure: Continued growth in all vertical end markets
Smart Infrastructure (SI) Continued growth in all vertical end markets supported by backlog Commercial Buildings 20% execution Public Sector / Education 10% All verticals grow in Power Distribution 5% real terms Electrical and Electronics 5% Data Center 5% 1 Y-o-Y vertical market development, majori
Slide 18: Smart Infrastructure: Order momentum broad based
Smart Infrastructure (SI) Order momentum Major orders data center & semis; broad based U.S. +8% +29% Electrification & Electrical Products (EP) drive revenue Orders affected from preponed Revenue growth fueled booking of service agreements as Germany -1% +21% indicated in Q1; by strength in Revenue
Slide 19: Mobility (MO)
Mobility (MO) All-time-high order intake and strong revenue growth €bn €m +162%1) 10 - 13% 6.2 -99% +33%1) 140 2.7 Excluding 9.2% 2.5 2.1 Russia 8.4% 0.4 0.4 >1 0.01 1.7 2.2 -17.3% 2 Q2 FY 22 Q2 FY 23 Q2 FY 22 Q2 FY 23 Q2 FY 22 Q2 FY 23 Q2 FY 22 Q2 FY 23 • Book-to-bill at 2.32 • Double-digit growth
Slide 20: Below Industrial Business
Below Industrial Business Strong operational performance and positive effects from SE Investment drive net income €m • SFS: Driven by strong equity business 1,504 performance -207 3,554 3,551 • Portfolio Companies: Further operational -588 -3 171 60 improvement, Innomotics carve-out on track 2,614 M
Slide 21: Free cash flow
Free cash flow Material catch-up in Q2 as committed €m +42% • Strong profit development 2,713 1,910 • Stable operating working capital level; 1.04 Continuous selected growth-related inventory 1.07 build-up, strong collection Q2 FY 22 Q2 FY 23 €m +77% 2,350 • Excluding non-cash partial impairment rev
Slide 22: ROCE and capital structure
ROCE and capital structure Excellent operational performance reflected in financial strength 30.5% ROCE1) incl. SE-impairment. Industrial net debt/ excl. SE impairment & impairment reversal reversal EBITDA 24.6% Target Up to 1.5x 16.4% 17.4% 14.3% 1.6x 1.6x 11.1% 10.2% 1.4x 1.0x 1.1x 1.0x Target -11
Slide 23: Below Industrial Business
Below Industrial Business €m H1 FY 23 Expectation for FY 2023 Profit Industrial Business 5,300 SFS 303 Above FY 2022 level, RoE within target range 15 – 20% POC 228 ~€0.3bn incl. value creation from CV divestment; continued execution of full potential plans SE Investment 1,550 PPA-effects of ~-€0.1b
Slide 24: Outlook FY 2023 raised
Outlook FY 2023 raised Comparable Profit margin Book-to-bill >1 revenue growth Digital Industries 17 – 20% 22.5 – 23.5% [12 – 15%] [20 – 22%] Revenue growth 9 – 11% (Comparable) [7 – 10 %] Smart Infrastructure 14 – 16% 14.5 – 15.5% [9 – 12%] [13.5 – 14.5%] EPS pre PPA1) €9.60 – €9.90 Mobility 10 – 1
Slide 25: Questions and Answers
Questions and Answers Page 25 Unrestricted | © Siemens 2023 | Investor Relations | Q2 Analyst Call | 2023-05-17
Slide 26: Appendix
Appendix Page 26 Unrestricted | © Siemens 2023 | Investor Relations | Q2 Analyst Call | 2023-05-17
Slide 27: Financial Services: Solid H1 FY23 performance
Financial Services: Solid H1 FY23 performance despite volatile credit environment Key figures SFS total Therein: Debt Business Equity Business Return on Equity 19.8% 17.3% 15.2% 12.5% 51.1% 42.9% (after tax) Earnings before taxes (€m) 335 303 242 203 93 102 171 100 71 Total assets (€bn) 31.3 31.4 31
Slide 28: Below Industrial Business
Below Industrial Business Strong operational performance and positive effects from SE Investment drive net income €m 1,736 -4 -37 -59 -28 -207 -104 3,554 3,551 -588 -3 60 Therein: 171 Minorities 2,614 -€67m Thoughtworks Tax Rate €74m revaluation loss @ 14% Therein: €1,594m SE Investment partial impa
Slide 29: Net debt bridge
Net debt bridge Capital structure remains rock solid Ind. Net Debt/ EBITDA (c/o) €bn Operating Activities therein: 1.0x • CAPEX -0.5 (Q1 FY23: 1.1x) • SFS -0.3 37.1 39.1 13.9 therein: • ∆ Inventories -0.4 25.2 • ∆ Trade and other receivables +0.2 • ∆ Trade payables +0.1 therein: • ∆ Contract assets/
Slide 30: Siemens with sound refinancing profile
Siemens with sound refinancing profile €2.5bn transaction in February securing long-term funding at attractive rates Loan and bond maturity profile as of March 31, 2023 in EUR bn 6.0 5.3 4.9 4.5 3.7 2.9 2.2 2.3 2.0 1.6 1.4 1.4 1.0 1.0 0.9 0.8 0.8 0.8 0.7 0.8 0.5 FY 2023 FY 2024 FY 2025 FY 2026 FY 20
Slide 31: Provisions for pensions remain stable on historic low
Provisions for pensions remain stable on historic low Q FY 2020 – Pensions and similar obligations Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY in €bn¹ FY 2020 FY 2021 2022 2022 2022 2022 2023 2023 Defined benefit obligation (DBO)² -35.8 -35.5 -35.7 -32.7 -28.5 -27.8 -27.2 -27.3 Fair value of plan assets² 30
Slide 32: 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 23 1H FY 23 SHS EBIT (adjusted) 681 12.7% 1,328 12.7% PPA (SHS logic)1 -101 -208 Transaction, Integration, Retention, carve-out cost -8 -16 Gains and losses from divest
Slide 33: Outlook FY 2023 as presented by Siemens Healthineers
Outlook FY 2023 as presented by Siemens Healthineers on May 10, 2023 Page 33 Unrestricted | © Siemens 2023 | Investor Relations | Q2 Analyst Call | 2023-05-17
Slide 34: 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 35: Financial calendar, Investor Relations Contacts
Financial calendar May 17, 2023 May 23, 2023 May 30 - 31, 2023 June 8, 2023 August 10, 2023 Q2 Earnings Roadshow Roadshow JP Morgan Q3 Earnings Release Paris U.S. conference Release May 24, 2023 June 9, 2023 Roadshow Roadshow Frankfurt London Investor Relations Contacts Eva Scherer Tobias Atzler Nik