Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Q1 2023 Earnings Presentation
30 slides from Siemens Aktiengesellschaft's earnings presentation, Feb 9, 2023
Slide 1: Flying start to fiscal 2023 – Guidance raised
Flying start to fiscal 2023 – Guidance raised Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2023 | Investor Relations | Q1 Analyst Call | 2023-02-09
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 Highlights
Q1 Highlights Flying start to fiscal 2023 – Guidance raised • Very robust demand: Book-to-bill 1.25, backlog of €102bn at record level Excellent topline • Strong revenue growth: up 8%, DI and SI both up 15% • Continued market share gains in DI Automation: Revenue up 23% • Industrial Business with re
Slide 4: Q1 Key Financials
Q1 Key Financials Strong book-to-bill of 1.25 and stringent backlog execution €22.6bn €18.1bn 15.6% -8% +8% €2.08 €0.1bn 1.1x Note: Orders and Revenue growth comparable Page 4 Unrestricted | © Siemens 2023 | Investor Relations | Q1 Analyst Call | 2023-02-09
Slide 5: Order backlog at record level underpins growth expectations
Order backlog at record level underpins growth expectations Easing supply chains and operational excellence providing confidence €bn • Easing of supply chain frictions with 102 40 improved component and material availability DI 14 10 10 • Still constraints in industrial electronics SI 16 7 • Normali
Slide 6: Drive sustainability through electrification, automation and digitalization
Drive sustainability through electrification, automation and digitalization Combining hardware, software and services for superior customer value Scaling vertical farming Building e-charging infrastructure Providing sustainable transport • Optimize and standardize operations in • Develop Saudi EV ec
Slide 7: Focus on sustainability
Focus on sustainability DEGREE updated with significant acceleration of ambitions Sustainability business Amberg factory – a WEF sustainability D – Decarbonization Accelerated lighthouse E – Ethics • 50% less energy consumption per unit • Innovations to decarbonize value chains G – Governance • Almo
Slide 8: Stringent strategy execution – SaaS-transition fully on track
Combining the real and digital worlds Stringent strategy execution – SaaS-transition fully on track €bn # Customers (accumulated): +14%1) ~5,450 Therein 70% 3.3 3.6 3.5 new customers 2.9 3.0 3.1 ~3,100 Target: ~2,350 ~40% ~1,250 79% ~500 74% SME customers 18% by FY 25 69% 5% 6% 9% 12% 15% 59% 60% Q4
Slide 9: Digital Industries (DI)
Digital Industries (DI) Robust demand, excellent backlog execution with outstanding profitability €bn €m -13% 1) +70 bps 7.1 +15%1) 17-23% 6.3 +24% 5.1 4.3 593 1.1 478 1.1 22.0% 22.7% 3.2 4.0 0.51 0.52 21.8% 22.5% Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 • Strong Autom
Slide 10: Digital Industries (DI): Continued growth in all vertical end markets
Digital Industries (DI) Continued growth in all vertical end markets, substantially driven by Automotive 20% price inflation Machine Building 15% Underlying demand Pharma & Chemicals 10% closely monitored Food & Beverage 10% Electronics & Semiconductors 10% 1 Y-o-Y industry revenue development based
Slide 11: Digital Industries (DI): Starting normalization of demand patterns
Digital Industries (DI) Starting normalization of demand patterns Orders up sequentially, down y-o-y China -7% +17% on exceptionally tough comps; +78% Strong backlog conversion Easing of component Orders normalizing on tough comps; Germany -24% +16% Revenue up broad-based shortages fueling +62% broa
Slide 12: Smart Infrastructure (SI)
Smart Infrastructure (SI) Excellent topline delivers boost for record profitability €bn €m +16%1) +270bps 6.0 +15%1) 11-16% n/a 4.9 107 4.6 3.8 1.0 0.9 12.7% 15.5% 0.22 2.9 3.6 12.6% 15.3% -0.07 -50 Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 • Book-to-bill at 1.31 • Elec
Slide 13: Smart Infrastructure (SI): Continued growth in all vertical end markets
Smart Infrastructure (SI) Continued growth in all vertical end markets, substantially driven by Commercial Buildings 20% price inflation Public Sector / Education 10% Underlying demand Power Distribution 5% closely monitored Data Center 5% Electrical and Electronics 5% 1 Y-o-Y vertical market develo
Slide 14: Smart Infrastructure (SI): Order momentum broad based
Smart Infrastructure (SI) Order momentum Substantial topline growth in broad based U.S. +20% +25% Electrification and Electrical Products (EP) Revenue growth fueled Orders benefitting from preponed Germany +38% +14% booking of service agreements by strength in U.S. Revenue driver EP & Electrificatio
Slide 15: Mobility (MO)
Mobility (MO) Performance as expected, large customer opportunities ahead €bn €m -42%1) n/a 5.4 106 -130bps 10 - 13% +7%1) 0.48 3.0 2.4 2.4 9.5% 8.2% -1.32 0.4 0.4 9.3% 8.0% 2.0 2.1 -257 Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 • Major order win (Sydney Metro) • Double
Slide 16: Below Industrial Business
Below Industrial Business Solid performance €m 168 • Portfolio Companies: Successful 132 2,687 strategy execution and operational -509 improvement -254 1,644 1,636 • Other Below IB-items: SE investment Therein: Therein: -579 -8 continues to be volatile €140m -€187m Commercial SE Investment Minoritie
Slide 17: Free cash flow
Free cash flow Strong growth momentum driving inventory and accounts receivable increase €m 3,877 • Temporary inventory build-up to secure momentum in backlog execution 2,466 1,910 1,435 0.15 • Timing effects of customer payments 0.58 1.07 0.86 1.23 395 • Receivables increase on strong revenue Q1 FY
Slide 18: Order backlog at record level underpins growth expectations
Order backlog at record level underpins growth expectations Easing supply chains and operational excellence providing confidence €bn • Easing of supply chain frictions with 102 40 improved component and material availability DI 14 10 10 • Still constraints in industrial electronics SI 16 7 • Normali
Slide 19: Outlook FY 2023 raised
Outlook FY 2023 raised Book-to-bill >1 Comparable Profit margin revenue growth Digital Industries 12 – 15% 20 – 22% Revenue growth 7 – 10% [10 – 13%] [19 – 22%] (Comparable) [6 – 9%] Smart Infrastructure 9 – 12% 13.5 – 14.5% [8 – 11%] [13 – 14%] EPS pre PPA €8.90– €9.40 [€8.70 – €9.20] Mobility 6 –
Slide 20: Questions and Answers
Questions and Answers Page 20 Unrestricted | © Siemens 2023 | Investor Relations | Q1 Analyst Call | 2023-02-09
Slide 21: Appendix
Appendix Page 21 Unrestricted | © Siemens 2023 | Investor Relations | Q1 Analyst Call | 2023-02-09
Slide 22: Siemens Financial Services (SFS)
Siemens Financial Services (SFS) Solid start into fiscal year 2023 €m FY 2022: Q1 FY 2023: • Lower earnings contribution from the debt business RoE: 15.6% RoE: 14.5% due primarily to expenses for credit risk provisions; Q1 FY 22 benefited from a favorable credit environment 196 138 75 132 • Equity b
Slide 23: Below Industrial Business
Below Industrial Business Impact from SE Investment partly compensated by disposal gain €m 168 132 2,687 -187 -3 -43 -78 -25 Therein: -254 €140m -174 Commercial 1,644 1,636 Vehicles disposal gain Therein: -579 -8 -€74m provisions for a Minorities legacy project Tax Rate €159m @ 26% IB SFS POC SE SRE
Slide 24: ROCE and capital structure
ROCE and capital structure Excellent operational performance reflected in financial strength ROCE1) Incl. 780 bps Industrial net debt/ Parcel disposal gain 24.6% EBITDA Target 16.4% 14.3% Up to 1.5x 11.1% 1.6x 1.6x Target 1.4x 1.0x 1.1x 15 - 20% -11.8% FY 22: 10.0% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 2
Slide 25: Net debt bridge
Net debt bridge Capital structure remains rock solid therein: Ind. Net Debt/ • CAPEX -0.4 EBITDA (c/o) €bn Operating Activities • SFS -0.3 1.1x • Commercial Vehicle (Q4 FY22: 1.0x) disposal +0.2 37.2 37.1 11.8 therein: • ∆ Inventories -1.0 25.3 • ∆ Trade and other receivables -1.1 therein: • ∆ Trade
Slide 26: Provisions for pensions on new historic low
Provisions for pensions on new historic low – market environment continues to be volatile Q FY 2020 – Pensions and similar obligations Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY in €bn¹ FY 2020 FY 2021 2022 2022 2022 2022 2023 Defined benefit obligation (DBO)² -35.8 -35.5 -35.7 -32.7 -28.5 -27.8 -27.2 Fair value
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 Q1 FY 23 SHS EBIT (adjusted) 647 12.7% PPA (SHS logic)1 -107 Transaction, Integration, Retention, carve-out cost -8 Gains and losses from divestments 0 Severance -11 SHS EBIT
Slide 28: Outlook FY 2023 as presented by Siemens Healthineers
Outlook FY 2023 as presented by Siemens Healthineers on February 2, 2023 Page 28 Unrestricted | © Siemens 2023 | Investor Relations | Q1 Analyst Call | 2023-02-09
Slide 29: Siemens Financial Framework
Siemens Financial Framework Targets over 3 – 5 year cycle 1 – comp. 5–7% comparable 15–20% revenue Cash conversion growth ROCE1 growth rate rate (all in)2 High Progressive up to single-digit dividend growth EPS pre PPA 1.5x Industrial net policy debt/EBITDA Digital Industries Smart Infrastructure Mo
Slide 30: Financial calendar, Investor Relations Contacts
Financial calendar February 9, 2023 March 21, 2023 March 24, 2023 April 19, 2023 May 17, 2023 Q1 Earnings Bank of America Roadshow Hanover Fair Q2 Earnings Release / AGM Conference Munich Release March 27, 2023 Roadshow Switzerland Investor Relations Contacts Eva Scherer Tobias Atzler Nikola Petrovi
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