Siemens Healthineers Ag · XETR:SHL
Siemens Healthineers — Investor Day (November 2021)
46 slides from Siemens Healthineers's investor day presentation, Nov 17, 2021
Slide 1: Capital Markets Day 2021 – Management Board Presentation
Capital Markets Day 2021 Management Board Presentation Bernd Montag, CEO Darleen Caron, CHRO Jochen Schmitz, CFO November 17, 2021 Unrestricted © Siemens Healthineers, 2021
Slide 2: Safe harbor statement
Safe harbor 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 b
Slide 3: New Ambition
New Ambition Bernd Montag, CEO
Slide 4: We pioneer breakthroughs in healthcare. For everyone. Everywhere.
We pioneer breakthroughs in healthcare. For everyone. Everywhere. Unrestricted © Siemens Healthineers, 2021
Slide 5: We successfully delivered on our Upgrading priorities, now entering New Ambition
We successfully delivered on our Upgrading priorities Now entering New Ambition UPGRADING NEW AMBITION now 2019 REINFORCING Delivered on our Upgrading priorities… ….while managing through the pandemic • Achieved our financial targets • Closed the transformative combination with Varian • Launched bre
Slide 6: New Ambition - Accelerating growth
New Ambition - Accelerating growth Comparable revenue growth Adj. basic EPS growth 6 to 8% 12 to 15% p.a. p.a. Note: The guidance 2023-25 is based on current foreign exchange rate assumptions and on the current portfolio; excluding COVID-19 rapid antigen test Capital Markets Day, 2021 contribution U
Slide 7: Our unique capabilities
Our unique capabilities Patient Twinning Precision Therapy Personalization of diagnosis, Intelligent and image guided therapy selection and monitoring, treatment for the most after care and managing health threatening diseases Digital, Data and AI Leveraging digital, data and AI and advance provider
Slide 8: Sodium MRI tumor imaging
Patient Precision Twinning Therapy Digital, Data and AI Sodium MRI tumor imaging Capital Markets Day, 2021 Unrestricted © Siemens Healthineers AG, 2021 l 8
Slide 9: Enhanced Liver Fibrosis blood test
Patient Precision Twinning Therapy Digital, Data and AI Enhanced Liver Fibrosis blood test ELF Score: Risk of disease progression Lower Mid Higher < 9.8 ≥ 9.8- <11.3 ≥ 11.3 Capital Markets Day, 2021 Unrestricted © Siemens Healthineers AG, 2021 l 9
Slide 10: Hippocampal-sparing whole-brain radiation therapy
Patient Precision Twinning Therapy Digital, Data and AI Hippocampal-sparing whole-brain radiation therapy Capital Markets Day, 2021 Unrestricted © Siemens Healthineers AG, 2021 l 10
Slide 11: Robotic assisted lesion crossing
Patient Precision Twinning Therapy Digital, Data and AI Robotic assisted lesion crossing Capital Markets Day, 2021 Unrestricted © Siemens Healthineers AG, 2021 l 11
Slide 12: AI-based organ segmentation for radiation therapy planning
Patient Precision Twinning Therapy Digital, Data and AI AI-based organ segmentation for radiation therapy planning Capital Markets Day, 2021 Unrestricted © Siemens Healthineers AG, 2021 l 12
Slide 13: AI-quantified signatures associated with COVID-19 in lung CT
Patient Precision Twinning Therapy Digital, Data and AI AI-quantified signatures associated with COVID-19 in lung CT Capital Markets Day, 2021 Unrestricted © Siemens Healthineers AG, 2021 l 13
Slide 14: Leading businesses uniquely combining focus and scale
Leading businesses… …uniquely combining focus and scale Patient Twinning Precision Therapy Imaging Varian Revenue Margin Recurring revenue Revenue Margin Recurring revenue €9.8bn 21% ~40% €2.9-3.1bn 15-17% ~50% • Computed Tomography • X-ray Products • Radiation Oncology Solutions • Magnetic Resonanc
Slide 15: Unmatched global footprint and customer proximity
Unmatched global footprint and customer proximity Americas EMEA ~9,000 ~12,000 sales & service employees sales & service employees APAC Manu- ~8,000 R&D sales & service employees facturing ~20,000 ~11,500 Note: Share of employees in manufacturing (incl. supply chain employees, i.e. logistics, order
Slide 16: Unmatched relevance as a holistic partner
Unmatched relevance as a holistic partner … … for a consolidating and transforming customer base Office based Affil. Hospital Affil. Hospital Affil. Hospital Unique customer access specialties Outpatient Center • Unmatched C-level relationships • addressing all major departments Commercial Lab • add
Slide 17: Our unique capabilities enable breakthrough innovations
Our unique capabilities enable breakthrough innovations Patient Twinning Precision Therapy MAGNETOM Atellica CorPath GRX Ethos Free.Max CI1900 Advancing into neuro- Taking the lead in Breaking 8 Bringing vascular interventions adaptive barriers Atellica technology into low- cancer in MRI to-mid volu
Slide 18: Addressing the greatest challenges and opportunities in Healthcare
New Ambition Addressing the greatest challenges opportunities in Healthcare Leading causes of death1 Cardiovascular 18m (32%) Unrealized opportunities Cancer 10m (18%) Neurological Disorders 7m (12%) … to fight the most threatening diseases Cost pressure Consolidation Untapped potential Staff shorta
Slide 19: Addressing the greatest opportunities in Healthcare
New Ambition Addressing the greatest opportunities in Healthcare • Comprehensive cancer care Fighting the most threatening diseases • Image guidance and robotics in neurovascular and cardiovascular care • Further build C-level access Enabling efficient operations • Grow Value Partnerships • Drive di
Slide 20: Each business with razor sharp focus
New Ambition Each business with razor sharp focus… Patient Twinning Precision Therapy Imaging Varian Expand #1 position & create new markets, Accelerate cancer care impact building on unmatched innovation power & scale together as one Diagnostics Advanced Therapies Accelerate growth & expand margins
Slide 21: Serving more customers and patients with unique scale
New Ambition …while serving more customers and patients with unique scale Patient Twinning Precision Therapy Imaging Varian Fighting most threatening diseases Enabling efficient operations Expanding access to care Diagnostics Advanced Therapies Digital, Data and AI Capital Markets Day, 2021 Unrestri
Slide 22: We pioneer breakthroughs in healthcare. For everyone. Everywhere.
We pioneer breakthroughs in healthcare. For everyone. Everywhere. Comparable revenue growth 6 ─ 8% p.a. Fighting most threatening diseases Enabling efficient operations Expanding access to care Adj. basic EPS growth 12 ─ 15% p.a. Note: The guidance for 2023-25 is based on current foreign exchange ra
Slide 23: Siemens Healthineers Management Team
Siemens Healthineers Management Team Bernd Montag, CEO Jochen Schmitz, CFO Darleen Caron, Chief Human Resources Elisabeth Staudinger1), Christoph Zindel2), Officer & Labor Director Member of the Board Member of the Board Managing Board Businesses Regions Andre Hartung, Deepak Nath, Chris Toth, Carst
Slide 24: New Ambition – Darleen Caron, CHRO
New Ambition Darleen Caron, CHRO
Slide 25: Our shared culture is a key success factor
Our shared culture is a key success factor Purpose driven Deep domain expertise Sense of pride and highly committed employees Long history of innovation Capital Markets Day, 2021 Unrestricted © Siemens Healthineers AG, 2021 l 25
Slide 26: Building on a strong foundation, a unifying Purpose and Values
Building on an already strong foundation we further developed a Purpose and Values unifying 66.000 Healthineers New Ambition Strategy Voice of Employees Voice of Customer/Patients We ensured our culture aligns to We heard feedback from thousands of We listened to our customers and were our strategic
Slide 27: Our shared culture is a key enabler to drive real business value
Our shared culture is a key enabler to drive real business value impacting billions of lives “Culture is not the soft stuff, it’s THE stuff.” Chris Toth Promoting skilled & Cross-fertilizing across Building agility Aligning incentives diverse talent organizations in how we operate “Win Together” Our
Slide 28: Our Purpose and Values
Our Purpose and Values We pioneer breakthroughs in healthcare. For everyone. Everywhere. We listen first win together learn passionately step boldly own it Capital Markets Day, 2021 Unrestricted © Siemens Healthineers AG, 2021 l 28
Slide 29: Innovating to sustainably enable healthcare for everyone, everywhere
Innovating to sustainably enable healthcare for everyone, everywhere Increasing Access to Care All future buildings will DE&I is integral part of is a core strategy be carbon-neutral our company culture Stroke Care in Mekong Delta, Vietnam Healthineers Campus Bangalore, India Fostering diversity in
Slide 30: Innovating to sustainably enable healthcare – Our targets
Innovating to sustainably enable healthcare for everyone, everywhere – Our targets Improve quality of Contribute to a Advance diversity and life through access to regenerative and inclusion and drive healthcare and innovation healthy environment employee engagement 220’ 130 kt 26% patient touchpoint
Slide 31: Effective governance, transparent communication
Effective governance, transparent communication Progress in Ratings • Sustainalytics rating improved to medium risk (from high risk) ranking top 5 Comprehensive Reporting • Publication November 25th, 2021 • Includes progress report on KPIs Proactive Investor communication • Increased presence in ESG
Slide 32: New Ambition – Jochen Schmitz, CFO
New Ambition Jochen Schmitz, CFO
Slide 33: Our financial framework
Our financial framework 4 1 Driving innovation and growth 2 Fostering profitability 3 1 2 3 Strengthening financial soundness 4 Focused capital allocation Capital Markets Day, 2021 Unrestricted © Siemens Healthineers AG, 2021 l 33
Slide 34: R&D and SG&A fuel future growth
R&D and SG&A fuel future growth Driving innovation and growth 1 R&D expenses SG&A expenses • Ambitious R&D pipeline and broad sales in % coverage fuel future growth agenda by market 9% 9% 9% 8 to 9% 15% 16% 17% 15 to 17% of rev. share gains and market development activities • R&D spend stays around
Slide 35: Proven track record of industry-leading (gross) margins
Proven track record of industry-leading (gross) margins Fostering profitability 2 (Gross) Margins The Siemens Healthineers set-up for industry-leading (gross) margins Pricing discipline across the board and Pricing pricing strength from innovation leadership positions 4 to 5% p.a. of total cost prod
Slide 36: High and resilient revenue growth – ~55% of revenue are recurring
High and resilient revenue growth coinciding – ~55% of revenue are recurring Strengthening financial soundness 3 Non-recurring and recurring revenues growing at High and resilient revenue growth similar speed • Secular and stable procedure growth ensures resilient Non-Recurring demand for our produc
Slide 37: We are set-up for strong free cash flow generation
We are set-up for strong free cash flow generation Strengthening financial soundness 3 Free cash flow (€m) • Resilient cash generation with high share of recurring revenues Cash Conversion rate 0.63 0.82 0.99 0.7 to 0.9 Free cash before taxes • Strong free cash conversion rates at ~0.9 in steady-sta
Slide 38: M&A principles remain transparent and unchanged
M&A principles remain transparent and unchanged – while we execute on creating value from our acquisitions Focused capital allocation 4 Transparent M&A principles • Smart – M&A targets are selected to fit the M&A Short-term Mid-term Long-term Deal overall strategy within the four segments type accre
Slide 39: Strong cash generation enables quick deleveraging – dividend policy unchanged
Strong cash generation enables us to deleverage quickly – dividend policy remains unchanged Focused capital allocation 4 Short-term deleveraging ROCE improving over the long-term 4x Net debt/ ROCE EBITDA 2019 2020 2021 2022 and beyond Long-term • “Solid investment grade” (like) rating as a minimum r
Slide 40: Outlook 2022 – underlying profile in line with mid-term targets
Outlook 2022 – underlying profile fully in line with mid-term targets Comparable revenue growth Adj. basic earnings per share Ex antigen: 5 to 7% Ex antigen: +17 to +23% 0 to 2% €2. 8 to €2.2 Capital Markets Day, 2021 Note: The outlook is based on current foreign exchange rate assumptions and on the
Slide 41: Total synergies of >€350m by 2025 drive Varian segment margin
Total synergies of >€350m by 2025 drive Varian segment margin well above 20% Margin improvements positively skewed over time • Digital offerings – accelerating our software and tech enabled services roadmap • Value Partnerships – better access to • Integrated solutions – reaching a new level c-level
Slide 42: Mid-term guidance for comparable revenue growth
Mid-term guidance for comparable revenue growth • Imaging growth at 5 ─ 8% p.a. 6 to 8% p.a. • Diagnostics growth progressing to 4 ─ 6% p.a. • Varian growth at 9 ─ 12% p.a. • Advanced Therapies growth at 5 ─ 8% p.a. Note: The guidance for 2023-25 is based on current foreign exchange rate assumptions
Slide 43: Mid-term guidance for adjusted basic EPS growth
Mid-term guidance for adjusted basic EPS growth • Imaging margin expanding by 20 ─ 80 bps p.a. 12 to 15% p.a. • Diagnostics margin progressing towards mid-teens in 2025 • Varian margin progressing to ‘well above 20%’ in 2025 • Advanced Therapies margin progressing towards 20% in 2025 Note: The guida
Slide 44: We pioneer breakthroughs in healthcare. For everyone. Everywhere.
We pioneer breakthroughs in healthcare. For everyone. Everywhere. Comparable revenue growth 6 ─ 8% p.a. Fighting most threatening diseases Enabling efficient operations Expanding access to care Adj. basic EPS growth 12 ─ 15% p.a. Note: The guidance for 2023-25 is based on current foreign exchange ra
Slide 45: Disclaimer
Disclaimer Atellica CI1900: Currently under development and not yet commercially available. Its future availability cannot be guaranteed AI-Rad Companion: AI-Rad Companion consists of several health products and medical devices in their own right, and products under development. AI-Rad Companion is
Slide 46: Glossary
Glossary Adjusted revenue is defined as consolidated revenue reported in the company’s consolidated statements of income adjusted for effects in line with revaluation of contract liabilities from IFRS 3 purchase price allocations. (Adjusted) Comparable revenue growth is defined as the development of