Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Q4 2023 Earnings Presentation
44 slides from Siemens Aktiengesellschaft's earnings presentation, Dec 16, 2023
Slide 1: Powerful finish to record fiscal year
Powerful finish to record fiscal year Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2023 | Investor Relations | Q4 Analyst Call | 2023-11-16
Slide 2: Notes and forward-looking statements
Notes and forward-looking statements This document contains statements related to our future business and financial or achievements of Siemens may (negatively or positively) vary materially from performance and future events or developments involving Siemens that may those described explicitly or im
Slide 3: Strong fundamentals
Strong fundamentals Speed and agility to win in volatile business environment Secular demand trends driven by electrification, automation, digitalization and sustainability Leading portfolio to accelerate customers’ digital & sustainability transformation: >90% of Siemens business enables customers
Slide 4: Key topics
Key topics 1 Record performance in FY 2023 2 Successful strategy execution 3 Outlook FY 2024 from a position of strength Page 4 Unrestricted | © Siemens 2023 | Investor Relations | Q4 Analyst Call | 2023-11-16
Slide 5: Siemens Group: Record operational performance, guidance achieved
Siemens Group Record operational performance, guidance achieved €bn +7% €bn +11% 89.0 92.3 72.0 77.8 1.19 FY 2022 FY 2023 FY 2022 FY 2023 EPS pre PPA excl. SE Investment €bn €bn €9.93 +11% €9.90 Record high +23% Record high Record high 11.4 €9.60 10.3 10.0 8.2 15.1% 15.4% FY 2022 FY 2023 FY 2022 FY
Slide 6: Siemens Businesses
Siemens Businesses Digital Industries and Smart Infrastructure with all-time high performance Record high Digital Industries 15% 22.6% [13 – 15%] [22 – 23%] Record high Smart Infrastructure 15% 15.4% [14 – 16%] [14.5 – 15.5%] Mobility 15% 8.4% [10 – 12%] [8 – 10%] Note: [ ] Outlook as of Q3 FY 2023
Slide 7: Q4 Business highlights
Q4 Business highlights Powerful finish across all metrics • Orders up in SI, MO and SHS, DI AUT normalization: Group book-to-bill 1.02 Strong topline • Record high revenue in all Industrial Businesses: IB up 10% • Competitive strength: DI SW Revenue up 30%, SI Electrification up 25% • Record profit
Slide 8: Q4 Key Financials
Q4 Key Financials €21.8bn €21.4bn 16.5% +6% +10% €2.64 ex SE invest €2.34 €4.6bn 0.6x as reported Note: Orders and Revenue growth comparable Page 8 Unrestricted | © Siemens 2023 | Investor Relations | Q4 Analyst Call | 2023-11-16
Slide 9: Further growing order backlog
Further growing order backlog Stringent execution building on diversified supply chains €bn • Continuing high demand in systems, solution 111 43 and service businesses 11 8 DI 10 • Supply chains and manufacturing execution 16 back to normal SI 11 11 • Lead times for short-cycle businesses in DI MO 4
Slide 10: Siemens and Microsoft partner to drive cross-industry AI adoption
Siemens and Microsoft partner to drive cross-industry AI adoption Ecosystem expansion on Siemens Xcelerator digital business platform • End-to-end offering for digital twin of the controller, customer specific machine tool and the workpiece • 40% faster production ramp-up of the machine • 75% less u
Slide 11: Siemens Xcelerator and vertical know how drive customer value and sustainability
Siemens Xcelerator and vertical know how drive customer value and sustainability Scalable offerings building on a strong technology stack AUTOMOTIVE – FORD UTILITY – NORTHUMBRIAN WATER All-in-one Industrial IT/OT platform 1m smart meters Digital transformation by connected to data co-creation of a s
Slide 12: Combining the real and digital worlds
Combining the real and digital worlds New offerings for Siemens Xcelerator portfolio foster growth and customer value €bn • Continue successful SaaS transition ~10% CAGR and grow SME customer base • Build-out EDA offering 7.3 • Expand cloud-based and edge- 6.5 offerings across businesses 5.3 5.6 • G
Slide 13: Combining the real and digital worlds: SaaS transformation
Combining the real and digital worlds Strong underlying growth momentum while maintaining high pace SaaS transformation Therein 77% new customers €bn # Customers (accumulated): +14%1) +15%1) ~11,300 4.0 SME customers ~9,260 3.6 3.5 3.6 3.7 ~7,520 2.9 ~5,450 Target: 84% ~40% ~2,350 ~3,100 81% 82% ~50
Slide 14: Global investment strategy – expand U.S. manufacturing for critical infrastructure equipment
Global investment strategy – expand U.S. manufacturing for critical infrastructure equipment Accelerated adoption of generative AI drives data center investment Great success in data center vertical in fiscal 2023 • Extraordinary strong order level close to €2bn • Comparable revenue growth of ~25% y
Slide 15: Leadership in digitalization, decarbonization and resource efficiency
Leadership in digitalization, decarbonization and resource efficiency Stringent capital allocation in future growth fields creating business impact • Industrial Operations X, e.g. SW defined control, next R&D in % of revenue 8.0% ~8% generation inverters with Digital Twin and edge connectivity • Exp
Slide 16: Optimization of portfolio continues to sharpen profile
Optimization of portfolio continues to sharpen profile M&A Strategy Bolt-on • Continue bolt-on acquisitions acquisitions • Strengthen technological offering Closed Q2-23 Announced Q4-23 • Aligned with strategic imperatives FY 2023 FY 2024 FY 2025ff NEMA Motors Process Gas Industrial Continue with se
Slide 17: Innomotics – Leading motors and large drives company
Innomotics – Leading motors and large drives company Further steps towards an independent Innomotics to be launched #1 Low Leading industrial and Voltage commercial LV motors to IEC €1.4bn • Carve-out largely completed, Motors standard according to plan €3.3bn double shared • Global business with pr
Slide 18: Digital Industries (DI)
Digital Industries (DI) Extraordinary SW performance, ongoing Automation normalization, outstanding profit & cash €bn €bn €m +11%1) +160bps -8%1) 17-23% -1% 5.7 5.7 6.0 4.9 1,337 1,318 1.3 1.6 21.7% 24.3% 4.3 4.3 1.10 0.96 21.5% 23.1% Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4
Slide 19: Digital Industries: Automation orders bottoming out on destocking
Digital Industries (DI) Automation orders Q4 21 Q4 22 bottoming out on Orders impacted by soft macro and China -33% -14% destocking destocking -30% Revenue with tough comps +61% Orders normalizing on tough comps Germany -41% +18% Broad based revenue growth on Lower orders limit +49% +8% substantial
Slide 20: Digital Industries: Muted growth momentum in key end markets
Digital Industries (DI) Vertical end market trends Muted growth momentum in key end markets Automotive 20% Pricing effects in end Machine Building 15% markets further fading Pharma & Chemicals 10% Food & Beverage 10% Electronics & Semiconductors 10% 1 Y-o-Y industry revenue development for next 6 mo
Slide 21: Smart Infrastructure (SI)
Smart Infrastructure (SI) Excellent performance across all metrics, free cash flow an outstanding highlight €bn €bn +12%1) €m +6%1) 5.5 +70bps 11-16% +5% 5.4 5.4 5.2 1.2 1,363 1,429 1.1 14.4% 15.3% 4.1 4.4 1.85 1.74 14.2% 14.9% Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4 FY 23
Slide 22: Smart Infrastructure: Order growth driven by major orders for data center
Smart Infrastructure (SI) Order growth driven Orders up on tough comps driven by large by major orders for U.S. +4% +14% Data Center wins Electrification & Electrical Products (EP) data center with substantial revenue growth On high comps, large Buildings order Germany -1% +9% balancing softer EP &
Slide 23: Smart Infrastructure: Key verticals continue to grow in real terms
Smart Infrastructure (SI) Vertical end market trends Key verticals continue to grow in real terms Commercial Buildings 15% Power Distribution and Data Center benefitting Public Sector / Education 10% from secular growth Power Distribution 10% trends Data Center 5% Electrical and Electronics 5% Healt
Slide 24: Mobility (MO)
Mobility (MO) Strong topline, profitability in line with expectations, excellent free cash flow performance €bn €bn €m +26% 1) +10%1) 10 - 13% +24% 3.2 -80bps 2.7 2.9 593 2.6 0.4 0.5 478 9.0% 8.3% 2.3 2.4 8.8% 8.0% 2.03 2.56 Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4 FY 23 • B
Slide 25: Below Industrial Business
Below Industrial Business Strong operational performance, while impact from SE Investment weighs on net income €m • SFS: Solid performance driven by Debt business 95 71 -488 3,378 • Portfolio Companies: Robust profitability -944 as expected -204 Therein: • Other Below IB items: SE Investment -€234m
Slide 26: Financial Services: Solid performance in fiscal year 2023
Financial Services: Solid performance in fiscal year 2023 Key figures SFS total Therein: Debt Business Equity Business Return on Equity 15.6% 16.3% 7.7% 11.2% 63.0% 41.7% (after tax) Earnings before 563 498 taxes (€m) 244 362 269 201 Total assets (€bn) 33.3 32.9 31.0 30.5 2.0 2.1 FY22 FY23 FY22 FY23
Slide 27: Fourth year in a row with free cash flow return well above 10%
Free cash flow with o Fourth year in a row with free cash flow return well above 10% €bn +7% • SI and Mobility with outstanding cash 10.4 conversion despite strong revenue growth in 9.7 0.15 1.04 1.14 1.22 Q4, DI well above CCR-target 3.1 4.1 0.94 2.7 0.91 • Siemens Healthineers with higher receivab
Slide 28: Capital structure with further improvement
Capital structure with further improvement Continuing strong operational and cash performance provide flexibility Industrial net debt/ EBITDA • Higher profitability level paired with strong and consistent cash generation • Excellent position with strong investment grade rating Target Up to 1.5x • Pe
Slide 29: Dividend yield of 3.5%, share buyback expanded by up to €6bn
Stringent capital allocation for very attractive total shareholder returns Dividend yield of 3.5%, share buyback expanded by up to €6bn Spin-off 1 €4.70 €4.00 €4.25 €3.60 €3.70 €3.80 €3.90 €3.30 €3.50 €3.50 €3.00 FY 13 FY 14 FY 15 FY 16 FY17 FY18 FY19 FY 20 FY 21 FY 22 FY 23 (€3bn until 2026) €4.0bn
Slide 30: Assumptions for FY 2024
Assumptions for FY 2024 Business environment • No further increase of geopolitical tensions • R&D intensity to remain ~8% of revenue OPEX • SG&A in % of revenue on similar level as in FY 2023 • Capex Ratio1) reflecting ongoing execution of strategic investment CAPEX initiative, expected above 150% S
Slide 31: Outlook FY 2024
Outlook FY 2024 Book-to-bill >1 Comparable Profit margin revenue growth Digital Industries 0 – 3% 20 – 23% Revenue growth 4 – 8% (Comparable) Smart Infrastructure 7 – 10% 15 – 17% EPS pre PPA excl. €10.40– €11.00 SE Investment Mobility 8 – 11% 8 – 10% This outlook excludes burdens from legal and reg
Slide 32: Questions and Answers
Questions and Answers Page 32 Unrestricted | © Siemens 2023 | Investor Relations | Q4 Analyst Call | 2023-11-16
Slide 33: Appendix
Appendix Page 33 Unrestricted | © Siemens 2023 | Investor Relations | Q4 Analyst Call | 2023-11-16
Slide 34: Siemens Group – well balanced footprint across geographies
Siemens Group – well balanced footprint across geographies Diversified supply chain and proactively managed risk exposure Americas EMEA Asia Pacific Therein USA: Therein Germany: Therein China: Revenue €77.8bn (FY23) 29% 24% 47% 16% 24% 12% Factories ~ 175 25% 48% 27% Purchasing volume ~€37bn (FY23)
Slide 35: Below Industrial Business
Below Industrial Business Strong operational performance, negative effects from SE Investment weigh on net income €m 95 71 3,378 89 -234 -76 -212 -26 -204 -29 1,907 1,902 -944 -5 Minorities Tax Rate €184m @ 33% IB SFS POC SE SRE Innov. Net Pensions PPA Fin., Elim., Tax Inc. Cont. Disc. Ops. Net Inve
Slide 36: Below Industrial Business FY 2024 Outlook
Below Industrial Business FY 2024 Outlook FY 20231) Expectation for FY 2024 Profit Ind. Business 11,316 SFS 563 Further gradual improvement POC/Innomotics 457 Operational margin >5%, FY 23 included gain on sale of CV (€148m) SE Investment 668 Dependent on SE performance; excluded from EPS guidance S
Slide 37: Reconciliation FY EPS to EPS pre PPA
Reconciliation FY 23 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) 8,529 579 7,949 10.04 PPA 1) 865 93 2) 773 0.98 Tax effect 3) -193 -0.24 EPS pre PPA 10.77 Out
Slide 38: Net Debt bridge
Net Debt bridge Improved capital structure driven by strong cash generation from operating activities Ind. Net Debt/ EBITDA (c/o) €bn Operating Activities therein: 0.6x • SFS -0.9 (Q3 FY23: 0.8x) • CAPEX -0.8 37.5 34.8 7.9 therein: 26.9 • ∆ Inventories +0.5 therein: • ∆ Trade and other receivables -
Slide 39: Siemens with sound refinancing profile
Siemens with sound refinancing profile Loan and bond maturity profile as of September 30, 2023 in EUR bn 6.1 5.4 5.0 4.5 3.7 2.9 2.3 2.0 1.7 1.4 1.4 1.0 1.0 0.9 0.8 0.8 0.8 0.8 0.8 0.5 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY2033 FY 2034 FY 2035 FY2036 FY 2039 FY 20
Slide 40: Provisions for pensions at another historic low
Provisions for pensions at another historic low 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 2020 2021 2022 2022 2022 2022 2023 2023 2023 2023 Defined benefit obligation (DBO)² -35.8 -35.5 -35.7 -32.7 -28.5 -27.8 -27.2 -27.3 -28.1 -26.6 F
Slide 41: 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 FY 23 FY 23 SHS EBIT (adjusted) 1,013 16.7% 3,081 14.2% PPA (SHS logic)1 -93 -393 Transaction, Integration, Retention, carve-out cost -14 -37 Gains and losses from divestm
Slide 42: Outlook FY 2023 as presented by Siemens Healthineers
Outlook FY 2023 as presented by Siemens Healthineers on November 8, 2023 Page 42 Unrestricted | © Siemens 2023 | Investor Relations | Q4 Analyst Call | 2023-11-16
Slide 43: 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 44: Financial calendar and Investor Relations Contacts
Financial calendar November 16, 2023 November 16/17, 2023 November 20, 2023 November 21, 2023 November 28/29, 2023 February 8, 2024 Q4 Earnings Roadshow Roadshow Roadshow Roadshow Q1 Earnings Release London Frankfurt Paris Boston, New York Release and Redburn Conference AGM Investor Relations Contac
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