Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Q3 2020 Earnings Presentation

21 slides from Siemens Aktiengesellschaft's earnings presentation, Aug 6, 2020

  1. Slide 1: Q3 - Strong team performance in challenging times!

    Q3 - Strong team performance in challenging times! Strategy concept Vision 2020+ gains traction Joe Kaeser, President and CEO Roland Busch, Deputy CEO Ralf P. Thomas, CFO Analyst Call, August 6, 2020 Unrestricted © Siemens 2020 siemens.com

  2. Slide 2: Notes and forward-looking statements

    Notes and forward-looking statements This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forw

  3. Slide 3: While mastering Covid-19 challenges, we accelerate digital transformation

    While mastering Covid-19 challenges, we accelerate digital transformation Secure employee health and safety ▪ Stringent execution of precautions Maintain business continuity ▪ SI and Salesforce partnership ▪ Boost employee satisfaction New way of working ▪ Accelerate savings Close and reliable partn

  4. Slide 4: Strategic concept Vision 2020+ gains traction

    Strategic concept Vision 2020+ gains traction Spin-Off acquires Digital Industries Software 99.36% approval rate Transformational Partnership between at EGM milestone two industrial leaders Unrestricted © Siemens 2020 Page 4 August 6, 2020 Q3 FY 2020 Analyst Call

  5. Slide 5: Q3 – Strong operating performance in challenging times

    Q3 – Strong operating performance in challenging times Orders Revenue IB Adj. EBITA margin -7% -5% 14.3% EPS Free Cash Flow Indust. ND/EBITDA (all-in) €0.67 €2.5bn 1.7x Orders and Revenue growth comparable Unrestricted © Siemens 2020 Page 5 August 6, 2020 Q3 FY 2020 Analyst Call

  6. Slide 6: Digital Industries (DI)

    Digital Industries (DI) Market share gains in a very diverging environment Orders Revenue Orders: €bn -4%¹) -5%¹) Significant Covid-19 impact cushioned by 3.7 3.6 3.9 China & large Mentor wins 3.7 1.0 1.1 Revenue: 2.9 2.6 Automation significantly down Q3 FY 19 Q3 FY 20 Q3 FY 19 Q3 FY 20 Software cle

  7. Slide 7: Covid-19 with severe impact in key customer industries

    Covid-19 with severe impact in key customer industries, partially offset by strong China and Software demand DI revenue share in vertical end markets Q3 FY 2020 - Key regions Automation (excl. Software) Trend next 3-4 quarters1) As of Q2/20 As of Q3/20 Orders +14% | Revenue +14% Broad based Covid-19

  8. Slide 8: Smart Infrastructure (SI)

    Smart Infrastructure (SI) Weathering tough market environment Orders Revenue Orders: €bn Negative impact, mainly in Products, -10%¹) -6%1) 3.8 Solutions & Services 3.4 3.6 3.4 1.4 1.2 Revenue: 2.2 2.2 Systems, Solutions & Services more Q3 FY 19 Q3 FY 20 Q3 FY 19 Q3 FY 20 resilient than Products Adj.

  9. Slide 9: Siemens Mobility (MO)

    Siemens Mobility (MO) Resilient topline performance despite Covid-19 headwinds Orders Revenue Orders: €bn High level of large orders across +2%¹) +2%¹) businesses 3.0 3.0 2.1 2.2 Revenue: Growth driven by Rolling Stock backlog Q3 FY 19 Q3 FY 20 Q3 FY 19 Q3 FY 20 execution Adj. EBITA Margin Free Cash

  10. Slide 10: Competitiveness programs further accelerated to drive sustainable improvement

    Competitiveness programs further accelerated to drive sustainable improvement View Q2 FY 20 Updated View Q3 FY 20 Digital Industries Smart Infrastructure Digital Industries Smart Infrastructure Cost ~ €320m ~ €300m ~ €340m optimization Operating by FY 2023 by FY 2023 ~ €320m by FY 2023 by FY 2021 Co

  11. Slide 11: SFS performance hit by Covid-19

    SFS performance hit by Covid-19 Stringent execution of strategy to focus on Siemens domains Income before income taxes (IBIT) €m All businesses (Equity Business, Project & Structured Debt, Commercial Finance) 518 strongly influenced by Covid-19 341 212 36 93 Lower IBIT mainly due to impairment on an

  12. Slide 12: Net income impacted by higher tax rate & discontinued operations

    Net income impacted by higher tax rate & discontinued operations Q3 FY 20 - Performance Below Industrial Businesses €m Therein: 36 9 21 -206 GP incl. inventories write-downs 1,792 -170 SGRE Carve-out tax -75 -422 Spin-off cost therein: Minorities -€51m Pensions 986 -451 €-3m -€155m Corp. Items Tax R

  13. Slide 13: Significant free cash flow improvement despite Covid-19

    Significant free cash flow improvement despite Covid-19 Working capital initiative delivers results Free cash flow – Industrial Businesses €m +13% Intensified cash focus across all businesses 3,998 3,542 2,108 Tight receivables management in difficult markets 1,101 789 9M FY 19 Q1 FY 20 Q2 FY 20 Q3

  14. Slide 14: Siemens Energy on track for listing end of September

    Siemens Energy on track for listing end of September March … August September September September 2020 2020 1 7 28 Portfolio set-up defined Roadshow Brand name announced Acquisition +8% SGRE stake Today Capital Market Leadership team in place Day Prospectus Initial listing Carve-out effective March

  15. Slide 15: Siemens stake in SHL dilutes from 85% to around 72%

    Siemens stake in SHL dilutes from 85% to around 72% Committed to remain long-term majority shareholder of SHL ▪ Acquisition of Varian supports SHL equity story Sound strategic ▪ Creates global powerhouse in healthcare with unique portfolio & capabilities rationale ▪ Combining SHL’ and Varian’s uniqu

  16. Slide 16: FY 2020 outlook

    FY 2020 outlook Top line guidance confirmed, EPS guidance remains suspended FY 2020 Siemens Group Assumptions €bn ▪ Expect economic consequences of the Covid-19 pandemic to 58.5 1) continue to strongly impact our FY Q4 financial results Book-to-bill > 1 ▪ Macroeconomic developments and their influen

  17. Slide 17: Appendix

    Appendix Unrestricted © Siemens 2020 Page 17 August 6, 2020 Q3 FY 2020 Analyst Call

  18. Slide 18: Q3 FY 2020 Net debt bridge

    Q3 FY 2020 Net debt bridge Ind. Net Debt/ EBITDA (c/o) in €bn Operating Activities 1.7x (Q2 FY20: 1.8x) 34.6 32.7 14.7 therein a.o.: therein a.o.: • Capex -0.3 • Share buyback -0.5 18.0 • SFS +0.5 2.1 0.3 0.0 -0.5 Net Debt Cash flows from ∆ Working Capital Cash flows from Financing and Net Debt Net

  19. Slide 19: Provisions increased in Q3 mainly due to decreased discount rate

    Provisions increased in Q3 mainly due to decreased discount rate, partially offset by positive actual return on plan assets Q FY 2020 – Pensions and similar obligations in €bn¹ FY 2018 FY 2019 Q1 FY 2020 Q2 FY 2020 Q3 FY 2020 Defined benefit obligation (DBO)² -35.9 -40.3 -39.2 -33.4 -35.7 Fair value

  20. Slide 20: Q3 FY20 Profit Bridge from SHS disclosure to SAG disclosure

    Q3 FY20 Profit Bridge from SHS disclosure to SAG disclosure Different profit definitions at SHS and SAG to be considered in models in €m disclosure (as of August 2, 2020) disclosure (as of August 6, 2020) 15.1% 14.8% 499 13.9% 489 9 461 26 0 -9 12 12.4% -41 41 410 EBIT Transaction Severance PPA effe

  21. Slide 21: Financial calendar

    Financial calendar Aug 6, 2020 Sep 1, 2020 Nov 12, 2020 Q3 Release CMD Siemens Energy Q4 Release investorrelations@siemens.com Sep 10, 2020 MS Conference www.siemens.com/investor London +49 89 636-32474 Unrestricted © Siemens 2020 Page 21 August 6, 2020 Q3 FY 2020 Analyst Call

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