Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Exane European CEO Conference 2016
24 slides from Siemens Aktiengesellschaft's conference presentation, Jun 14, 2016
Slide 1: Execution of Vision 2020 fully on track
Execution of Vision 2020 fully on track Ralf P. Thomas, CFO Exane European CEO Conference | Paris, June 14, 2016 Unrestricted © Siemens AG 2016 siemens.com
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
Slide 3: Siemens Vision 2020 – Stringent execution delivers results
Siemens Vision 2020 – Stringent execution delivers results Value Scale up • Innovation initiative • Customer and market focus • Digitalization at work Strengthen core • Stringent capital allocation Drive performance • Cost reduction support functions (€1bn) • Global footprint optimization • Fix unde
Slide 4: Executing Vision 2020 – Capital allocation along strategic imperatives
Executing Vision 2020 Capital allocation along strategic imperatives April 16 1| Areas of growth? January 16 2| Potential profit pool? Closing of divestment to AtoS Closing of acquisition of CD-adapco for 3| Why Siemens? $970m to pursue industrial software strategy January 16 4| Synergetic value? Cl
Slide 5: E-A-D: This system matters
E-A-D: This system matters Digitalization Vertical software Digital services ~€3.1bn ~€0.6bn +~16% • Build on deep domain know-how Revenue FY 2015 Revenue FY 2015 • Leverage M&A and R&D invest ++ +++ Automation Profitability Profitability • Roll-out of cross-divisional Sinalytics platform • >300k co
Slide 6: Hannover Fair 2016 – Not only for golfers!
Hannover Fair 2016 – Not only for golfers! “Ingenuity for life – Driving the Digital Enterprise“ Digital Enterprise – Key innovations Enhance Industrial software and automation portfolio 1 • Integration of CD-adapco flow simulation • Significant expansion of TIA-Portal and COMOS Software suite 2 Exp
Slide 7: Platforms lead products – Sinalytics connects more than 300,000 devices
Platforms lead products Sinalytics connects more than 300,000 devices Sinalytics Productivity Energy efficiency Common technology platforms EM WP Data analytics PG DF PS Sinalytics Data visualization Sinalytics Modeling/Analysis Customer value through Data management applications PD MO Data integrat
Slide 8: MindSphere – Siemens Cloud for Industry
MindSphere with “MindApps powered by Sinalytics” offers our customers a strong foundation for new, data-based business models MindSphere – Siemens Cloud for Industry Data analytics MindApps Data visualization by Siemens by OEMs by end-customers Optimize the performance of assets, energy and resource
Slide 9: Key takeaways
Key takeaways 1 Execution of Vision 2020 is well on track 2 Accelerated execution of €1bn cost reduction measures 3 Underperforming businesses show clear improvement 4 Stringent capital allocation along strategic imperatives 5 Focus on digital opportunities Unrestricted © Siemens AG 2016 Page 9 Pari
Slide 10: Appendix
Appendix Unrestricted © Siemens AG 2016 Page 10 Paris, June 14, 2016 Exane European CEO Conference
Slide 11: Guidance FY 2016 – Outlook confirmed
Guidance FY 2016 – Outlook confirmed We confirm our financial guidance for fiscal 2016, although the market environment for our high margin short cycle business may not pick up materially in the second half. We still anticipate further softening in the macroeconomic environment and continuing comple
Slide 12: One Siemens Financial Framework
One Siemens Financial Framework Clear targets to measure success and accountability One Siemens Financial Framework Siemens Growth: Capital efficiency Capital structure Siemens > most (ROCE2)) (Industrial net debt/EBITDA) relevant competitors1) 15 – 20% up to 1.0x (Comparable revenue growth) Total c
Slide 13: Underperforming businesses show improvement
Underperforming businesses show improvement Underperforming businesses Unconsolidated Revenue FY 2015 in €bn 2016e ~15 ~1.2 ~3% ~14 Fiscal 2013 2014 2015 2017e 2020e Siemens Year Compressors Margin -4% -3% +1% ~6% >8% • Tight monitoring of business plans • Footprint optimization • Sharpening busines
Slide 14: Measures for ongoing productivity improvement of 3-5% per annum
Measures for ongoing productivity improvement of 3 - 5% per annum Example: Supply chain management Supply chain management - BOLD moves program 2020 'Traditional' procurement levers Contract management & pooling + Cross-functional levers Demand/spend management Negotiations excellence Core/n
Slide 15: Accelerated execution of cost reduction measures
Accelerated execution of cost reduction measures Target achievement of ~€1bn well on track Cumulated effects of savings €850m – €800m – €1bn €1bn €950m €900m €400m €150m – €200m FY 2015 FY 2016e FY 2017e View on distribution of savings as of Q4 FY 2015 View on distribution of savings as of Q2 FY 201
Slide 16: Continuing growth in orders, revenue and profitability
Continuing growth in orders, revenue and profitability Orders Revenue Profit Industrial Business (IB) Net Income in €bn +7% Comp. +5% in €bn in €bn (+7%) (nom.) (+5%) +28% BSH and 3.9 20.8 22.3 2.1 Audiology 18.0 19.0 €3bn +~60% 1.7 9.6% 11.4% 1.5 B-t-B 1.15 1.17 Margin 10.9% 9.0% Q2 15 Q2 16 Q2 15
Slide 17: Convinced customers – Reliable partner – Good business
Convinced customers – Reliable partner – Good business Megadeals in Egypt – execution on track Major offshore order in Wind Power • €3.1bn orders for Burullus and New Capital power plants incl. East Anglia ONE project long-term service contract • Fast track projects for 9.6 GW (16 H-class turbines)
Slide 18: PG: Great performance in a challenging market environment; WP: Exceptionally strong
PG: Great performance in a challenging market environment WP: Exceptionally strong Power and Gas (PG) Wind Power and Renewables (WP) Orders Revenue Orders Revenue €bn €bn +86%1) +15%1) 6.2 +60%1) +18%1) 3.1 3.1 3.9 1.4 2.1 1.3 1.5 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY
Slide 19: EM: Impressive turnaround through stringent execution; BT: Solid performance
EM: Impressive turnaround through stringent execution BT: Solid performance and great leadership Energy Management (EM) Building Technologies (BT) Orders Revenue Orders Revenue €bn €bn -0%1) -1%1) +1%1) +1%1) 3.1 3.0 2.8 2.7 1.5 1.5 1.4 1.4 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY
Slide 20: DF: Top line flat – Bottom line top; PD: Structural challenges addressed
DF: Top line flat – Bottom line top PD: Structural challenges addressed for long term recovery Digital Factory (DF) Process Industries and Drives (PD) Orders Revenue Orders Revenue €bn €bn +1%1) +0%1) -2%1) -3%1) 2.6 2.6 2.4 2.4 2.4 2.3 2.2 2.1 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q
Slide 21: MO: Stringent execution secures leading margins; HC: Consistently strong performer
MO: Stringent execution secures leading margins in the sector HC: Consistently strong performer in the market Mobility (MO) Healthcare (HC) Orders Revenue Orders Revenue €bn €bn -50%1) +2%1) +5%1) +6%1) 3.8 3.2 3.2 3.2 3.3 1.8 1.8 1.9 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2 FY 16 Q2 FY 15 Q2
Slide 22: Below Industrial Business: Strong results from SFS
Below Industrial Business: Strong results from SFS, D/O-gain from sale of remaining financial assets from hearing aid business Below Industrial Business (Q2 FY 2016) Expectations for H2 FY 2016 in €m • SFS: H2 in line with prior year -99 22 • CMPA: Negative impact H2 smaller than prior year, 2,115 2
Slide 23: Financial calendar
Financial calendar June 14, 2016 Exane Conference (Paris) June June 28 – 29, 2016 Capital Market Day “Energy and Oil & Gas” (Houston) July / August 4, 2016 August Q3-Earnings Release Unrestricted © Siemens AG 2016 Page 23 Paris, June 14, 2016 Exane European CEO Conference
Slide 24: Investor Relations
Siemens Investor Relations contacts Investor Relations Internet: www.siemens.com/investorrelations Email: investorrelations@siemens.com IR-Hotline: +49 89 636-32474 Fax: +49 89 636-32830 Unrestricted © Siemens AG 2016 Page 24 Paris, June 14, 2016 Exane European CEO Conference