Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Q1 2024 Earnings Presentation
29 slides from Siemens Aktiengesellschaft's earnings presentation, Feb 8, 2024
Slide 1: Successful start to fiscal 2024
Successful start to fiscal 2024 Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2024 | Investor Relations | Q1 Analyst Call | 2024-02-08
Slide 2: Notes and forward-looking statements
Notes and forward-looking statements This document contains statements related to our future business and or not at all or assumptions prove incorrect, actual results, performance or financial performance and future events or developments involving achievements of Siemens may (negatively or positive
Slide 3: Q1 Business highlights
Q1 Business highlights Strong performance, accelerating transformation by combining the real and digital worlds ROBUST TOPLINE STRINGENT EXECUTION CONSISTENT STRATEGY Orders up Successful conversion Accelerating transformation • Book-to-bill 1.21, driven by MO • Q1 IB profit of €2.7bn • Driving indu
Slide 4: Q1 Key Financials
Q1 Key Financials Orders Revenue IB Profit margin €22.3bn €18.4bn 15.8% +2% +6% EPS pre PPA Free cash flow Industrial Net debt/EBITDA €2.58 ex SE invest €1.0bn 0.7x €3.19 as reported Note: Orders and Revenue growth comparable Page 4 Unrestricted | © Siemens 2024 | Investor Relations | Q1 Analyst Cal
Slide 5: Order backlog on record level
Order backlog on record level Stringent execution building on resilient supply chains Expected revenue generation from backlog Leveraging operational excellence €bn • Continuing high demand in systems, solution and 113 38 service businesses on secular trends DI 10 6.5 11 • Short-cycle product orders
Slide 6: Siemens delivers innovations to enable the industrial metaverse
Siemens delivers innovations to enable the industrial metaverse Powerful tech event at CES 2024 Siemens & AWS Siemens & Sony Siemens Xcelerator Access to Immersive Launch generative AI engineering developer portal • Integration of AWS Bedrock into Siemens • Combining Siemens’ NX software with • Holi
Slide 7: Siemens Xcelerator and vertical know-how drive customer value
Siemens Xcelerator and vertical know-how drive customer value Sustainability impact through decarbonization, resource efficiency & people centricity SEMICONDUCTOR – AUTOMOTIVE – INTEL RED BULL FORD POWER TRAINS Advanced Sustainable future of manufacturing domain kno motorsport Enhanced efficiency an
Slide 8: DI SW – Annual Recurring Revenue (ARR)
Combining the real and digital worlds Strong underlying growth momentum with SaaS transformation at high pace Therein 75% DI SW – Annual Recurring Revenue (ARR) SaaS transition with high momentum new customers €bn # Customers (accumulated): +15%1) ~12,590 +14%1) SME customers ~11,300 3.7 4.0 3.9 ~9,
Slide 9: Digital Industries (DI)
Digital Industries (DI) SaaS transition accelerated, powerful start for cash generation, Automation stabilizing Orders Revenue Profit margin Free cash flow €bn €bn €m -31%1) 6.0 -1%1) -370bps 17-23% +3% 4.8 4.6 4.0 1.1 591 606 1.2 23.6% 19.8% 3.7 3.4 0.53 0.68 23.3% 19.6% Q1 FY 23 Q1 FY 24 Q1 FY 23
Slide 10: Digital Industries: Key regions
Digital Industries (DI) Q1 FY 24 – Key regions Orders Revenue Automation orders Automation sequentially up after Orders impacted by soft macro and China -55% -9% destocking, but sequentially up; trough in Q4 FY 23 Revenue with tough comps Orders normalizing, sequentially up; Germany -29% -5% Muted m
Slide 11: Digital Industries: Vertical end market trends
Digital Industries (DI) Vertical end market trends Vertical end markets Revenue Market trend1 Market trend1 Still subdued macro exposure Q4 FY 23 Q1 FY 24 environment Automotive 20% Muted growth momentum in key end Machine Building 15% markets Pharma & Chemicals 10% Food & Beverage 10% Electronics &
Slide 12: Smart Infrastructure (SI)
Smart Infrastructure (SI) Excellent topline performance, record high profitability, robust start for free cash flow Orders Revenue Profit margin Free cash flow €bn €bn €m +1%1) +300bps 6.0 5.8 +9%1) n/a 11-16% 290 4.6 4.8 1.1 18.5% 1.0 15.5% 18.3% -0.07 0.33 3.6 3.7 15.3% -50 Q1 FY 23 Q1 FY 24 Q1 FY
Slide 13: Smart Infrastructure: Key regions
Smart Infrastructure (SI) Q1 FY 24 – Key regions Orders Revenue Order growth driven Orders up on tough comps driven by by buildings business U.S. +4% +15% Buildings, supported by data center wins; Strong backlog execution, Electrification and large orders for and Electrical Products (EP) drive growt
Slide 14: Smart Infrastructure: Vertical end market trends
Smart Infrastructure (SI) Vertical end market trends Vertical end markets Revenue Market trend1 Market trend1 Key verticals continue exposure Q4 FY 23 Q1 FY 24 to grow in real terms Commercial Buildings 20% Power Distribution and Data Center benefitting Public Sector / Education 10% from secular gro
Slide 15: Mobility (MO)
Mobility (MO) Strong topline, profitability and free cash flow improvement Orders Revenue Profit margin Free cash flow €bn €bn €m +92% 1) 10 - 13% 5.6 +130bps +78% +12% 1) 3.0 -257 -57 2.4 2.7 9.4% 8.2% -0.23 0.4 0.5 9.3% 8.0% -1.32 2.1 2.2 Q1 FY 23 Q1 FY 24 Q1 FY 23 Q1 FY 24 Q1 FY 23 Q1 FY 24 Q1 FY
Slide 16: Below Industrial Business
Below Industrial Business Strong operational performance, SE investment gain & change in consolidation method Q1 FY 24 Key developments €m • SFS: Exceptional performance driven by sale 395 -724 of an equity investment as planned 260 78 -197 2,723 • Portfolio Companies: 2,535 13 2,548 Robust profitab
Slide 17: Free cash flow with sharp improvement over prior year
Free cash flow with sharp improvement over prior year FCF Industrial Business Stringent working capital management €bn • Free cash flow improvement across all industrial 0.15 1.04 1.15 1.22 0.47 businesses 4.1 2.7 3.1 • Seasonal increase in operating working capital, 1.3 0.4 mainly driven by higher
Slide 18: Outlook FY 2024 confirmed
Outlook FY 2024 confirmed Siemens Siemens Revenue growth Profit margin Group Businesses Comparable Digital Book-to-bill >1 Industries 0 – 3% 20 – 23% Revenue growth Smart Comparable 4 – 8% Infrastructure 7 – 10% 15 – 17% €10.40 – EPS pre PPA Mobility 8 – 11% 8 – 10% excl. SE Investment €11.00 This o
Slide 19: Questions and Answers
Questions and Answers Page 19 Unrestricted | © Siemens 2024 | Investor Relations | Q1 Analyst Call | 2024-02-08
Slide 20: Appendix
Appendix Page 20 Unrestricted | © Siemens 2024 | Investor Relations | Q1 Analyst Call | 2024-02-08
Slide 21: Siemens Financial Services (SFS)
Siemens Financial Services (SFS) Exceptional start into FY 2024 with successful execution of an investment sale as planned Earnings before Taxes (EBT) Q1 developments €m FY 2023: Q1 FY 2024: • Higher results from debt business mainly due to RoE 16.3% RoE 31.2% lower expenses for credit risk provisio
Slide 22: Below Industrial Business
Below Industrial Business Strong operational performance, SE investment gain Q1 FY 24 Tax Rate @ 22% €m 479 5 -46 31 78 -59 -14 260 -197 2,723 2,535 13 2,548 -724 Minorities €160m IB SFS POC SE SRE Innov. Net Pensions PPA Fin., Elim., Tax Inc. Cont. Disc. Ops. Net Investment Governance Other Ops Inc
Slide 23: Net Debt bridge
Net Debt bridge Capital Structure remains rock solid Ind. Net Debt/ EBITDA (c/o) €bn Operating Activities therein: 0.7x • CAPEX -0.4 (Q4 FY23: 0.6x) • Acquisition of businesses -0.3 • SFS +0.4 34.8 36.6 10.6 therein: therein: • ∆ Inventories -0.8 • Purchase of 18% share of 26.1 • ∆ Trade and other r
Slide 24: Capital structure on excellent level
Capital structure on excellent level Continuing robust cash performance, purchase of stake in Siemens Ltd. India Capital structure Financial strength Industrial net debt/ EBITDA • Consistent cash generation with improvement over prior year • Excellent position with strong investment grade rating Tar
Slide 25: Provisions for pensions largely unchanged at historic low level
Provisions for pensions largely unchanged at historic low level – Effects from funding of 8% stake in Siemens Energy and positive asset performance offset by lower discount rate Q FY 2020 – Pensions and similar obligations Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY in €bn¹ FY 2021 FY 2022 2023 2023 2023 2023 202
Slide 26: 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 Q1 FY 24 SHS EBIT (adjusted) 742 14.3% PPA (SHS logic)1 -95 Transaction, integration, retention, carve-out cost -5 Gains and losses from divestments 0 Severance -24 Expenses
Slide 27: Outlook FY 2024 as presented by Siemens Healthineers
Outlook FY 2024 as presented by Siemens Healthineers on February 1, 2024 Page 27 Unrestricted | © Siemens 2024 | Investor Relations | Q1 Analyst Call | 2024-02-08
Slide 28: Siemens Financial Framework
Siemens Financial Framework Targets over 3 – 5 year cycle Revenue Capital 1 – comp. Cash Siemens 5–7% comparable growth 15–20% efficiency revenue growth rate Cash conversion rate (all in)2 ROCE1 High Capital Earnings up to Progressive single-digit structure dividend Dividend growth EPS pre PPA 1.5x
Slide 29: Financial calendar and Investor Relations Contacts
Financial calendar February 8, 2024 February 27, 2024 February 29, 2024 March 19, 2024 April 24, 2024 May 16, 2024 Q1 Earnings Roadshow Roadshow Bank of Hanover Fair Q2 Earnings Release Zurich Munich America Investor Tours Release Conference Investor Relations Contacts Eva Scherer Tobias Atzler Niko
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