Siemens Healthineers Ag · XETR:SHL

Siemens Healthineers — Q3 FY2021 Earnings Presentation

19 slides from Siemens Healthineers's earnings presentation, Jul 30, 2021

  1. Slide 1: Q3 Analyst Call

    Q3 Analyst Call Dr. Bernd Montag, CEO | Dr. Jochen Schmitz, CFO July 30, 2021

  2. Slide 2: Safe harbour statement

    Safe harbour 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

  3. Slide 3: Outstanding growth in orders and revenues across the board

    Outstanding growth in orders and revenues across the board • Further expanding order backlog with >€5.5bn order intake (equip. book-to-bill 1.181) • 39% revenue growth2 with peak in rapid antigen test revenue, driving Diagnostics growth2 to a stellar 103% • Imaging and Advanced Therapies achieve exc

  4. Slide 4: Value Partnerships and large deals: Further capitalizing on the scale of our unmatched portfolio

    Value Partnerships and large deals: Further capitalizing on the scale of our unmatched portfolio and C-level access • Significant increase in Value Partnerships and large deals across regions in FY21 • Strong funnel for the remaining year, with initial successes by including Varian • Combination wit

  5. Slide 5: Varian with a strong start; Integration well on track

    Varian with a strong start; Integration well on track Recovery in full swing Strong financial performance (€m) On track to deliver synergy targets EBIT synergies in €m Organic revenue growth y-o-y1 Adjusted Adj. EBIT Revenue (margin) 591 98 0% (16.6%) ~150 Apr 15 – June 30 Apr 15 – June 30 FY19 FY20

  6. Slide 6: A compelling investment case

    A compelling investment case 1 22 3 4 Attractive structural Sector leading margins Expanding portfolio Resilient performance and innovation with further upside into adjacent growth at all times driven growth markets • Leading positions in attractive, • Scope for further expansion • Varian: New level

  7. Slide 7: Adjusted EPS almost doubled on stellar revenue

    Adjusted EPS almost doubled on stellar revenue Revenue (€m) Adjusted basic earnings per share (€) +38.9% Y-o-Y +86% Comparable (Adj. EPS growth ex-FX) Growth1 5,000 Y-o-Y +84% 0.56 3,312 0.31 Q3 FY2020 Q3 FY2021 Q3 FY2020 Q3 FY2021 • 39% revenue growth in Q3 with peak in rapid antigen test revenue •

  8. Slide 8: Continued excellent growth across all businesses, quarterly margin volatility in the segments

    Continued excellent growth across all businesses, quarterly margin volatility in the segments Imaging (€m) Diagnostics (€m) Advanced Therapies (€m) Comparable +17.0% +103.4% +11.8% Growth1 Adjusted 2,113 2,376 1,720 372 397 revenue 869 Q3 FY2020 Q3 FY2021 Q3 FY2020 Q3 FY2021 Q3 FY2020 Q3 FY2021 Marg

  9. Slide 9: Imaging on track for continued margin expansion in FY2021, profitability with quarterly volatility

    Imaging on track for continued margin expansion in FY2021, profitability with quarterly volatility Adj. EBIT margin1 Q4 24% Q2 Q4 Q4 21.1% 20.5% 20% 19.4% Q3 Q3 Q1 16% Q3 FY2018 FY2019 FY2020 FY2021 • Q3 FY21 down y-o-y on incentive provision headwinds, negative mix effects, and FX headwind • Margin

  10. Slide 10: Diagnostics core business with solid growth and margins, Q3 with anticipated peak in antigen sales

    Diagnostics core business with solid growth and margins, Q3 with anticipated peak in antigen sales and profit accretion DX incl. COVID-19 tests DX excl. COVID-19 tests Comparable revenue growth1 in FY21 • Rapid antigen test revenue peak in Q3 with ~€600m • Update of revenue assumption for FY21 to ~€

  11. Slide 11: Advanced Therapies margin burdened by FX, Incentives and mix effects – ongoing investments

    Advanced Therapies margin burdened by FX, Incentives and mix effects – ongoing investments Advanced Therapies adjusted EBIT margin 19.7% 9.3% FY 2019 (prior Corindus Platform FX Incentive Mix1 Q3 FY2021 Q4 FY2021 Corindus) Investment Investment headwinds headwinds • Headwinds from FX, incentives and

  12. Slide 12: Excellent cash performance, healthy position to further delever

    Excellent cash performance, healthy position to further delever Cash performance (€m) Leverage & net debt (€bn) +183% Leverage1 0.9x 3.7x 12.9 1,879 663 Net debt incl. Free Cash Flow pension 2.5 Q3 YTD Q3 YTD Oct 1, 2020 Jun 30, 2021 FY2020 FY2021 • Excellent cash performance in Q3 year-to-date • Ne

  13. Slide 13: Outlook 2021 raised – increased rapid antigen assumption, stronger Imaging growth, higher Varian contribution

    Outlook 2021 raised – increased rapid antigen assumption, stronger Imaging growth, higher Varian contribution Comparable revenue growth1,3 Adj. basic EPS2,3 (€) Adj. EPS growth ex-FX: ~24% to ~34% ~28% to ~34% 17% to 19% 1.90 to 2.05 1.95 to 2.05 14% to 17% 2021E Old 2021E New 2021E Old 2021E New •

  14. Slide 14: Appendix

    Appendix Q3 FY2021 Unrestricted © Siemens Healthineers AG, 2021 l 14

  15. Slide 15: Cash conversion rate significantly above 1

    Cash conversion rate significantly above 1 Q3 FY21 Siemens Healthineers EBIT to Free Cash Flow (€m) Imaging 1.2 CCR1 Diagnostics 1.6 Varian <0 Adv. Therapies 1.8 CCR1 1.15 -71′ 1″173 1″020 121′ 100′ 3′ 978′ 34′ 847′ 173′ -161′ -34′ 852′ 672′ -160′ 175′ Healthineers PPA EBIT excl. Depr. of PPE EBITDA

  16. Slide 16: Q3 balance sheet and net debt bridge

    Q3 balance sheet and net debt bridge Net debt overview Capital structure development in Q3 (in €bn) in €bn Sep 30, 2020 June 30, 2021 Leverage1 0.9x 3.7x Cash and cash equivalents 0.7 1.2 12.9 -1.1 0.9 Current receivables from the Siemens Group from financing 3.3 1.4 activities Short-term and long-t

  17. Slide 17: SHS loan maturity profile

    SHS loan maturity profile SHS loans with Siemens Group as of Jun 30th 20211 (in €m) Comments Other ▪ Total loan volume ~€14bn equivalent EUR ▪ Average interest rate ~0.5%3 USD 2,0862 Top 10 loans 1,877 106 1,730 Volume Volume Interest Currency Maturity 20 in m in €m rate 1,5142 EUR €1,000 €1,000 0.2

  18. Slide 18: Funded status unchanged, including Varian pension commitments

    Funded status unchanged, including Varian pension commitments Q3 FY2021 Key financials – Pensions and similar obligations Q1 Q2 Q3 in €bn1 FY2018 FY2019 FY2020 FY2021 FY2021 FY2021 Defined benefit obligation (3.4) (3.8) (3.8) (3.9) (3.8) (4.1) (DBO) Fair value of plan assets 2.6 2.8 2.8 2.9 2.9 3.2

  19. Slide 19: Q3 FY2021 Unrestricted © Siemens Healthineers AG, 2021 l 19

    Q3 FY2021 Unrestricted © Siemens Healthineers AG, 2021 l 19

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