Slide 1: Excellent performance in remarkable times
Excellent performance in remarkable times Joe Kaeser, President and CEO Siemens AG Roland Busch, Deputy CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2020 | Investor Relations | Q4 FY 2020 Analyst Call | 2020-11-12
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: Our agenda for today
Our agenda for today Execution Vision 2020+ Performance Q4 FY 2020 Outlook FY 2021 Priorities & Mobility Update Page 3 Unrestricted | © Siemens 2020 | Investor Relations | Q4 FY 2020 Analyst Call | 2020-11-12
Slide 4: Vision 2020+ fully on track – major progress achieved
Vision 2020+ fully on track – major progress achieved Value Ultimate value creation Transformation Leading in all businesses and Anticipating markets shaping the transformation Focus and trends Putting focus ▪ Siemens Energy spin-off completed ahead of scale ▪ Sale of Flender to Carlyle signed effec
Slide 5: Siemens AG re-rating start since EGM spin-off decision on July 9
Siemens AG re-rating start since EGM spin-off decision on July 9 Clear path for further value creation with 9% up on first day of trading Siemens Energy - Successful listing on September 28 Siemens AG re-rating peaked at first day of trading % Siemens 125 Spin-off Energy +23.3% Sep. 28 +9.2% 120 Ext
Slide 6: Q4 – Strong finish in an unprecedented environment
Q4 – Strong finish in an unprecedented environment Orders Revenue IB Adj. EBITA margin +2% -3% 18.7%1) EPS Free Cash Flow Indust. ND/EBITDA (all in) €2.20 €3.8bn 1.3x Note: Orders and Revenue growth comparable 1) Excluding Bentley gain and SI divestment gain: 13.8% Page 6 Unrestricted | © Siemens 20
Slide 7: FY 2020 revised guidance achieved
FY 2020 revised guidance achieved Siemens weathered COVID-19 crisis well Orders (€bn) Revenue (€bn) Guidance: -7%1) Guidance: -2%1) Moderate 64.7 60.0 Book-to-bill 58.5 57.1 decline >1 Book-to- bill FY 2019 FY 2020 1.05 FY 2019 FY 2020 Adj. EBITA margin Industrial Business Basic Earnings per Share -
Slide 8: Since 2014 guidance achieved or even raised
Since 2014 guidance achieved or even raised FY 2020 impacted by COVID-19 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Page 8 Unrestricted | © Siemens 2020 | Investor Relations | Q4 FY 2020 Analyst Call | 2020-11-12
Slide 9: Siemens clearly outperformed DAX over last years
Siemens clearly outperformed DAX over last 7 years Significant shareholder value generation 107.88€ Total Return +98% as of 30.09.2020 70.87€ as of 25.07.2013 Pre rumors CEO change DAX +54% Traditional Competitor -68% July 13 July 14 July 15 July 16 July 17 July 18 July 19 July 20 Source: Refinitiv/
Slide 10: Digital Industries (DI): Excellent execution on strong growth in China
Digital Industries (DI) Excellent execution on strong growth in China Orders Revenue Orders: €bn China and large Mentor wins drive growth +3%1) -6%1) 4.0 3.9 4.3 3.9 Revenue: 1.1 1.0 Automation decline bottoming out 3.2 2.8 Software modestly down on tough comps Q4 FY 19 Q4 FY 20 Q4 FY 19 Q4 FY 20 Ad
Slide 11: Digital Industries: first signs of stabilization in short-cycle Automation
Digital Industries (DI) Q4 with first signs of stabilization in short-cycle Automation business DI revenue share in vertical end markets Q4 FY 2020 - Key regions Automation (excl. Software) Trend next 3-4 quarters1) As of Q3/20 As of Q4/20 Orders +18% | Revenue +14% Continued growth supporting topli
Slide 12: Smart Infrastructure (SI): Solid performance in soft markets
Smart Infrastructure (SI) Solid performance in soft markets – portfolio optimization gains traction Orders Revenue Orders: €bn Large orders delayed, base business solid -6%1) -2%1) 4.2 3.8 4.2 3.9 1.5 Revenue: 1.4 Recovery mainly in Products 2.7 2.5 Solutions & Services impacted with a time Q4 FY 19
Slide 13: Mobility (MO): Strong performance, delivering on ambitions
Mobility (MO) Strong performance, delivering on ambitions Orders Revenue Orders: €bn Positive momentum in Rail Infrastructure +17%1) 0%1) Project shifts in Rolling Stock 1.8 2.1 2.5 2.4 Revenue: Key driver backlog conversion in Rolling Q4 FY 19 Q4 FY 20 Q4 FY 19 Q4 FY 20 Stock Adj. EBITA Margin Free
Slide 14: Siemens Financial Services (SFS)
Siemens Financial Services (SFS) Despite COVID-19 impact, robust performance compared to competition in FY 20 Income before income taxes (IBIT) Return on Equity €m 19.1% Adverse effect in equity business -45% 11.7% 632 Sharp increase in credit risk provisions, 345 however, low level of actual defaul
Slide 15: Below Industrial Businesses with several major extraordinary effects
Below Industrial Businesses with several major extraordinary effects Q4 FY 20 – Performance Below Industrial Businesses €m 2,644 4 -524 Minorities €121m -24 33 -473 807 1,879 Therein: -162 -€99m Goodwill impairment -46 -381 remaining SE activities -€453m Valeo Siemens JV Therein: 1,072 impairment -€
Slide 16: Q4 – Strong finish in free cash flow performance
Q4 – Strong finish in free cash flow performance Consistent progress in operating working capital initiatives Free cash flow – Industrial Businesses €m +7% Q4: €0.5bn free cash flow from reduction of 6,696 7,142 operating working capital 3,144 CCR CCR 0.86 1,101 2,108 0.94 FY 2020: Cash conversion r
Slide 17: Outstanding Total Shareholder Return
Outstanding Total Shareholder Return 3.2% Dividend Yield, €1.4bn SBB and ~€7bn Re-rating after SE spin-off Dividend – multi-year perspective 61% +10% 50% 52% 49% 53% 38% 60% 3.2%1) €3.50 €3.60 €3.70 €3.80 €3.90 €3.50 €3.30 €0.50 €3.00 FY 14 FY 15 FY 16 FY17 FY18 FY19 FY 20 Dividend per share Dividen
Slide 18: Assumptions Outlook FY 2021
Assumptions Outlook FY 2021 • No long-lasting impact of COVID-19 pandemic on economy • Return to global GDP growth; Global Fixed Investment to lag GDP growth Business environment • Important customer industries continue to face challenges related to pandemic and structural changes • Improving condit
Slide 19: Below Industrial Businesses – FY 2021 Expectations
Below Industrial Businesses – FY 2021 Expectations Below Industrial Businesses – FY 2020 Expectations for FY 2021 €m • SFS: significant improvement over FY 20; however, not at pre- 345 -504 COVID-19 levels 7,560 325 -1,104 -24 • POC: fully owned businesses positive contribution; -691 equity investme
Slide 20: Outlook FY 2021
Outlook FY 2021 FY 2021 Siemens Group FY 2021 Framework Businesses • Book-to-bill >1 Comparable Adj. EBITA margin • Moderate comparable revenue revenue growth expectation growth • Moderate increase of net income Digital Industries Modest 17 - 18% €bn Smart Infrastructure Moderate 10 – 11% 4.2 Mobili
Slide 21: Priorities for the new chapter
Priorities for the new chapter Develop strategic path for Siemens AG as one focused technology company Strengthen and amplify ESG program Leverage investments in digitalization to drive high quality growth Execute competitiveness and cost out programs Drive further value creation in portfolio compan
Slide 22: Leverage R&D investments and partner ecosystems to drive growth
Leverage R&D investments and partner ecosystems to drive growth Continued high level of R&D investment… … combined with strong ecosystem deliver results Partnership SAP - Siemens In % of ~5.8 Integrated end-to-end software solutions revenue 8.1% >8% across product lifecycle, supply chain and asset m
Slide 23: Further step-up in competitiveness programs
Further step-up in competitiveness programs Digital Industries Smart Infrastructure Cumulated savings Cumulated savings in €m 420 in €m 370 30 320 100 240 190 340 320 55 FY 2020 FY 2021e FY 2023e FY 2020 FY 2021e FY 2023e • Additional savings of €100m until FY 2023 • Additional savings of €30m until
Slide 24: Deliver on lean governance and corporate cost-out
Deliver on lean governance and corporate cost-out Global Business Services Lean and effective governance Cumulated efficiency Cumulated savings in €m in €m 50 90 30 50 450 270 Siemens Energy 210 Siemens AG FY 2020 FY 2021e FY 2020 FY 2021e FY 2023e • Stable operations ensured by remote working model
Slide 25: Portfolio Companies' strategic concept is effective
Portfolio Companies’ strategic concept is effective Active portfolio management to drive performance and value creation Portfolio Companies (POC) PE – Value creation approach FY 20: Revenue: €5.4bn Turnaround Free cash flow: €556m • Significant performance improvement in FY 20 Siemens Energy Assets1
Slide 26: Mobility market is resilient and offers excellent opportunities
Mobility market is resilient and offers excellent opportunities Strong recovery expected after hit in FY 2020 Resilient market growth despite COVID-19 shock1) Healthy market trends Market Market dynamics in €bn CAGR +4,3% • Secular drivers: decarbonization, urbanization FY19 – 22 • Growing demand fo
Slide 27: Best positioned to combine real & virtual world
Siemens Mobility Best positioned to combine real & virtual world – differentiating from competition Key figures FY 2020: €9.2bn Orders | €9.1bn Revenue | 9.1% adj. EBITA I 39k employees | €32bn Backlog Rolling Stock Infrastructure Customer Services Turnkey Leading integrated set-up + excellent strat
Slide 28: Customers transform their operational model together with Siemens
Customers transform their operational model together with Siemens Bane NOR (Norway) Rhein Ruhr Express (RRX) • IoT as a design concept – prepared to move logic to the • Efficient Desiro train platform with high customer flexibility cloud • Focus on OPEX: Lifecycle Costs over 32 years • Replacement o
Slide 29: Siemens Mobility: A global champion with industry leading returns
Siemens Mobility A global champion with industry leading returns, despite COVID-19 Orders Revenue Revenue growth Ø B-t-B CAGR nominal H2 FY20 in €bn 1.20 in €bn +5% 0% 12.9 comp. 10.3 11.0 9.0 9.2 8.2 8.8 8.9 9.1 7.9 7.6 7.9 -15% -18% SMO Competitor Competitor 1 2 FY15 FY16 FY17 FY18 FY19 FY20 FY15
Slide 30: Mobility with clear ambition to further improve the business
Mobility with clear ambition to further improve the business Revenue split by business (FY 2020) 7% Mid-term targets unchanged Rolling Stock 34% 45% Customer Services Rail Infrastructure Revenue Adj. EBITA Intelligent Traffic Systems growth margin 15% >5% >11% Revenue split by region (FY 2020) 11% 1
Slide 31: Carve out of Intelligent Traffic Systems to enable the next development level
Carve out of Intelligent Traffic Systems to enable the next development level Intelligent Traffic Systems (ITS) Strategic directions Integrated end-to-end portfolio for road Successful transformation as part of Mobility: infrastructure serving four market segments • Healthy ~€600m business with soft
Slide 32: The new chapter: Stringent milestones for execution
The new chapter Stringent milestones for execution November 12, 2020: Q4 Report – Progress Vision 2020+ & Update Siemens Mobility February 3, 2021: Annual General Meeting – Finalization management transition May 18, 2021: Siemens Capital Market Day – Strategic and operational deep dive H1 CY 2021: C
Slide 33: Appendix
Appendix Page 33 Unrestricted | © Siemens 2020 | Investor Relations | Q4 FY 2020 Analyst Call | 2020-11-12
Slide 34: Q4 FY20 – Net debt bridge
Q4 FY20 – Net debt bridge Ind. Net Debt/ EBITDA (c/o) in €bn Operating Activities 1.3x (Q3 FY20: 1.7x) therein: • ∆ Inventories +0.8 32.7 • ∆ Trade and other receivables -0.5 29.3 10.2 • ∆ Trade payables +0.7 • ∆ Contract Assets/Liabilities -0.5 19.1 therein a.o.: • Capex -0.5 • SFS -0.6 3.9 0.5 -1.
Slide 35: Provisions improved in Q4, mainly due to extraordinary fundings in Germany
Provisions improved in Q4, mainly due to extraordinary fundings in Germany Q FY 2020 – Pensions and similar obligations in €bn¹ FY 2018 FY 2019 Q1 FY 2020 Q2 FY 2020 Q3 FY 2020 Q4 FY 2020 Defined benefit obligation (DBO)² -35.9 -40.3 -39.2 -33.4 -35.7 -35.8 Fair value of plan assets² 28.7 31.3 31.2
Slide 36: FY 2020 Profit Bridge from SHS disclosure to SAG disclosure
FY 2020 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 November 2, 2020) disclosure (as of November 12, 2020) 15.4% 15.6% 15.1% 2,230 13.7% 2,249 2,184 -16 -65 24 10 65 -168 1,982 168 EBIT Transaction
Slide 37: Q4 FY 2020 Profit Bridge from SHS disclosure to SAG disclosure
Q4 FY 2020 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 November 2, 2020) disclosure (as of November 12, 2020) 16.1% 15.8% 15.2% 626 -5 14.4% 612 -22 6 -16 590 22 -39 560 39 EBIT Transaction Severan
Slide 38: Financial Calendar
Financial Calendar Nov 12, 2020 Jan 12, 2021 Feb 3, 2021 Q4 Release Commerzbank AGM conference Nov 17 - 18, 2020 Roadshow U. S. Nov 13, 2020 Nov 25 - 26, 2020 Roadshow UK Roadshow GER, F Page 38 Unrestricted | © Siemens 2020 | Investor Relations | Q4 FY 2020 Analyst Call | 2020-11-12
Slide 39: Investor Relations
Investor Relations Internet: www.siemens.com/investorrelations E-Mail: investorrelations@siemens.com Telephone: +49 89 636-32474 Fax: +49 89 636-1332474 Page 39 Unrestricted | © Siemens 2020 | Investor Relations | Q4 FY 2020 Analyst Call | 2020-11-12