Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Q3 2024 Earnings Presentation
29 slides from Siemens Aktiengesellschaft's earnings presentation, Aug 7, 2024
Slide 1: Profitable growth in third quarter – outlook confirmed
Profitable growth in third quarter – outlook confirmed Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2024 | Investor Relations | Q3 Analyst Call | 2024-08-08
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: Q3 Business highlights
Q3 Business highlights ROBUST TOPLINE STRINGENT EXECUTION CONSISTENT STRATEGY Orders solid Strong conversion Driving transformation • Book-to-bill 1.05, due to SI & SHS • IB profit of >€3.0bn • Infrastructure opportunities • DI sequentially up, driven by SW • IB margin at 16.5% • Capacity expansion
Slide 4: Q3 Key Financials
Q3 Key Financials Orders Revenue IB Profit margin €19.8bn €18.9bn 16.5% -15% +5% EPS pre PPA Free cash flow Industrial Net debt/EBITDA €2.66 €2.1bn 1.0x Note: Orders and Revenue growth comparable Page 4 Unrestricted | © Siemens 2024 | Investor Relations | Q3 Analyst Call | 2024-08-08
Slide 5: Secular trends drive Smart Infrastructure business
Smart Infrastructure is at the core of driving sustainable infrastructure transformation Further investing in the future to meet increasing demand Secular trends… Capacity expansion in Electrification • Electrification of everything • Additional invest of €100m 3x higher electricity demand by 2050 u
Slide 6: Scaling sustainability impact for customers
Scaling sustainability impact for customers Resource efficiency Decarbonization Governance Siemens and BASF Siemensstadt Square Top 1% ranking • Collaboration on driving circular economy • Create showcase how technologies from • Since 2021, score improved by 19 points to • Replacing fossil feedstock
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 BATTERIES – AEROSPACE – ULTIUM CELLS BAE SYSTEMS Smart battery Factory of the future manufacturing domain kno 5-year framework collaboration JV between
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 72% DI SW – Annual Recurring Revenue (ARR) SaaS transition with high momentum new customers €bn # Customers (accumulated): +15%1) SME customers ~16,550 +14%1) ~14,760 4.0 3.9 4.1 4.2
Slide 9: Digital Industries (DI)
Digital Industries (DI) Exceptional Software performance, soft Automation business as expected Orders Revenue Profit margin Free cash flow €bn €bn 0%1) €m +21%1) 5.0 4.9 +110bps -12% 4.5 17-23% 1.1 1,087 3.8 951 2.1 22.0% 23.3% 3.8 2.8 21.9% 22.9% 1.00 0.85 Q3 FY 23 Q3 FY 24 Q3 FY 23 Q3 FY 24 Q3 FY
Slide 10: Digital Industries – Key regions
Digital Industries (DI) Q3 FY 24 – Key regions Orders Revenue Automation orders Automation Orders sequentially stabilizing and sequentially softer; up, PYQ (-64%) very easy comps; China +25% -27% however, above trough Revenue impacted by high distributor stock levels level of Q4 FY 23 Orders sequent
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 Q2 FY 24 Q3 FY 24 environment Automotive 20% Persistently muted growth momentum in Machine Building 15% key end markets Pharma & Chemicals 10% Food & Beverage 10%
Slide 12: Smart Infrastructure (SI)
Smart Infrastructure (SI) Strong topline momentum, further margin expansion, excellent free cash flow - again Orders Revenue Profit margin Free cash flow €bn €bn €m +11%1) +140bps +37% 6.0 +10%1) 5.4 11-16% 4.9 5.4 1,007 17.2% 1.1 1.1 733 15.8% 17.0% 3.9 4.3 15.6% 0.95 1.09 Q3 FY 23 Q3 FY 24 Q3 FY 2
Slide 13: Smart Infrastructure – Key regions
Smart Infrastructure (SI) Q3 FY 24 – Key regions Orders Revenue Order growth driven Order strength on tough comps with by large customer wins U.S. +4% +19% continued major data center wins; Strong backlog execution, Electrification for data centers & Electrical Products driving revenue up Order grow
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 with exposure Q2 FY 24 Q3 FY 24 consistent market trends Commercial Buildings 15% Data Center further Public Sector / Education 10% boosted by AI; Power Distribution 10% Power
Slide 15: Mobility (MO)
Mobility (MO) Strong bottom line despite revenue being held back, free cash flow weighted to Q4 Orders Revenue Profit margin Free cash flow €bn €bn €m -71%1) >-100% 8.3 +60bps 10 - 13% +2%1) 709 2.6 2.6 8.9% 2.4 8.3% 0.4 0.5 -1.16 8.1% 3.40 2.1 8.7% -263 2.1 Q3 FY 23 Q3 FY 24 Q3 FY 23 Q3 FY 24 Q3 FY
Slide 16: Below Industrial Business
Below Industrial Business Reporting structure simplified, strong operational performance Q3 FY 24 Key developments €m • Reporting structure simplified Innomotics now part of Discontinued 131 3,033 Operations -132 Remaining Portfolio Companies now in -181 Other below IB items 2,158 2,133 -694 -25 • S
Slide 17: Consistent free cash flow
Consistent free cash flow FCF Industrial Business Q3 cash performance €m -5% • Industrial Business mainly impacted by sharply 6,209 5,913 0.47 0.84 0.83 lower level from advance payments in Mobility 0.78 2,532 0.71 1,281 2,100 • Outside Industrial Business, tax payments increased by €0.5bn y-o-y 9M
Slide 18: Outlook FY 2024 confirmed
Outlook FY 2024 confirmed Siemens Siemens Revenue growth Profit margin Group Businesses Comparable Book-to-bill >1 Digital -8% – -4% 18% – 21% Industries [expected at lower end] Revenue growth 4% – 8% Smart 8% – 10% 16% – 17% Comparable [expected at lower end] Infrastructure [expected at upper end]
Slide 19: Questions and Answers
Questions and Answers Page 19 Unrestricted | © Siemens 2024 | Investor Relations | Q3 Analyst Call | 2024-08-08
Slide 20: Appendix
Appendix Page 20 Unrestricted | © Siemens 2024 | Investor Relations | Q3 Analyst Call | 2024-08-08
Slide 21: Order backlog
Order backlog Growth aspirations well underpinned for Siemens Expected revenue generation from backlog Key developments €bn • Short-cycle product businesses in DI further 113 16 normalized, Software backlog stable 3 DI 10 5 3 • Continued increase of backlog in systems, 4 SI 19 0 solution and service
Slide 22: Siemens Financial Services (SFS)
Siemens Financial Services (SFS) Strong FY 24 YTD performance in both, Equity and Debt business Earnings before Taxes (EBT) ROE: €m 18.5% 20.1% +15% • Strong performance of Debt business mainly driven 260 540 by lower credit risk provisions 468 149 131 • Solid result from the Equity business; prior
Slide 23: Below Industrial Business – Outlook updated due to simplification in reporting
Below Industrial Business – Outlook updated due to simplification in reporting Innomotics reported as Discontinued Operations 9M YTD Expectation for FY 2024 Profit Industrial Business 8,270 SFS 540 Further gradual improvement over FY 2023 SE Investment 479 No further P&L impact; excluded from EPS gu
Slide 24: Net Debt bridge
Net Debt bridge Capital Structure remains rock solid Ind. Net Debt/ EBITDA (c/o) €bn Operating Activities therein: 1.0x • CAPEX -0.5 (Q2 FY24: 1.1x) 41.0 40.3 13.5 therein: therein: • ∆ Inventories -0.2 • Share buyback -0.3 26.8 • ∆ Trade and other receivables -0.2 • Interest paid -0.3 • ∆ Trade pay
Slide 25: Strong capital structure
Strong capital structure Capital structure Financial strength Industrial net debt/ EBITDA (c/o) • Consistent cash generation • Excellent financial position recognized with industry leading credit ratings Target Up to 1.5x • Pension deficit at new low of €1.3bn 1.6x • Share buyback program accelerate
Slide 26: Provisions for pensions on a new low
Provisions for pensions on a new low Q FY 2020 – Pensions and similar obligations FY FY Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY in €bn¹ 2021 2022 2023 2023 2023 2023 2024 2024 2024 Defined benefit obligation (DBO)² -35.5 -27.8 -27.2 -27.3 -28.1 -26.6 -28.8 -28.3 -27.6 Fair value of plan assets² 33
Slide 27: 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 Q3 FY 24 9M FY 24 SHS EBIT (adjusted) 825 15.2% 2,389 14.9% PPA (SHS logic)1 -95 -286 Transaction, integration, retention, carve-out cost -5 -16 Gains and losses from divestm
Slide 28: Outlook FY 2024 as presented by Siemens Healthineers on July 31, 2024
Outlook FY 2024 as presented by Siemens Healthineers on July 31, 2024 Page 28 Unrestricted | © Siemens 2024 | Investor Relations | Q3 Analyst Call | 2024-08-08
Slide 29: Financial calendar and Investor Relations Contacts
Financial calendar August 8, 2024 September 4, 2024 September 11, 2024 September 24, 2024 September 26, 2024 November 14, 2024 Q3 Earnings Morgan UBS Quo Goldman Innotrans Fair Q4 Earnings Release Stanley Vadis Event Sachs (Berlin) Release Conference (virtual) Conference (London) (Munich) Investor R
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