Siemens Healthineers Ag · XETR:SHL
Siemens Healthineers — Investor Day (November 2021)
60 slides from Siemens Healthineers's investor day presentation, Nov 17, 2021
Slide 1: Capital Markets Day 2021 Segment Presentations
Capital Markets Day 2021 Segment Presentations André Hartung, President Diagnostic Imaging Deepak Nath, President Laboratory Diagnostics Chris Toth, CEO Varian – A Siemens Healthineers Company Carsten Bertram, President Advanced Therapies November 17, 2021 1 Unrestricted © Siemens Healthineers, 2021
Slide 2: Safe harbor statement
Safe harbor statement This presentation has been prepared solely for use at this meeting. This material is given in conjunction with an oral presentation and should not be taken out of context. By attending the meeting where this presentation is held or accessing this presentation, you agree to be b
Slide 3: Imaging
Imaging Capital Markets Day 2021 André Hartung President Diagnostic Imaging 3 Unrestricted Unrestricted © Siemens Healthineers, 2021
Slide 4: Patient Twinning, Precision Therapy, Digital, Data and AI
Patient Precision Twinning Therapy Digital, Data and AI Capital Markets Day 2021 | Imaging 4 Unrestricted © Siemens Healthineers, 2021
Slide 5: Siemens Healthineers is the global leader in imaging
Siemens Healthineers is the global leader in imaging Market position Financials FY21 Revenue Split FY21 34% €9.8 bn X-ray Ultrasound 6% Market Share 1 Revenue Products Magnetic 14% Resonance 35% >145k €2.1 bn AP 29% EMEA 35% Adjusted EBIT Molecular 15% Growing installed base 2 AM Imaging 36% ~26k 21
Slide 6: Imaging is on the rise
Imaging is on the rise Continuous discovery of new applications for imaging e.g., Alzheimer’s disease, therapy response monitoring Shortage of >15.000 radiologists in the US 2 67% of low-income Steadily increasing countries still have number of CT & MRI exams 2 poor availability of imaging technolog
Slide 7: Building on a position of strength, we shape the imaging market along three dimensions
Building on a position of strength, we shape the imaging market along three dimensions What makes us confident 15” EUR 5” EUR crisis resilient radiology All major world markets modality market 1 IT market 2, 3 back to growth after Covid New markets & Addressing key breakthrough workflow Strong portf
Slide 8: We enter new markets and broaden access to care with the MAGNETOM Free. platform
We enter new markets and broaden access to care with the MAGNETOM Free. platform Breaking barriers – MAGNETOM Free. platform Enable access to care Significantly reduced costs and simplified infrastructure enables access to new geographies and spoke locations >50% of system are sold in new markets Ex
Slide 9: We initiate a new era of CT imaging with Photon-counting
We initiate a new era of CT imaging with Photon-counting Photon-counting technology will disrupt CT Imaging … Expand care for cancer, neuro & cardio Coronary Artery Disease - remove calcification from the image 3 ~300 2x Patents granted resolution 1 15+ ~40% years of research lower radiation dose 2
Slide 10: We address key customer challenges with digital solutions and services
We address key customer challenges with digital solutions and services Key customer challenges … … and how we address them Increase efficiency Data overload & of radiologists: inefficient operations All relevant information in >20,000 one digital workplace syngo sites worldwide with ~60 critical pat
Slide 11: We advance clinical decision-making with a strong AI-powered portfolio
We advance clinical decision-making with a strong AI-powered portfolio Strong footprint in imaging AI Comprehensive portfolio of AI companions, e.g.: 60+ 1.3 bn AI-Rad AI enriched offerings Curated clinical data sets Companion Brain MR 1, 2 700+ 3,100 Neuro e.g., analysis of brain structures AI-rela
Slide 12: We leverage a strong global footprint and are well positioned to capture growth in China
We leverage a strong global footprint and are well positioned to capture growth in China Strong global footprint Siemens Healthineers has a leading presence in China Deeply embedded in local ecosystem Oxford Leading Hoffman Estates in Imaging 1 Issaquah Erlangen/Forchheim Regional headquarter, Gyeon
Slide 13: Innovation leadership and our scale fuel future success
Innovation leadership and our scale fuel future success ~9% of revenue 1 Industry leading R&D investment >70% revenue from innovations introduced in last 3 years Innovate Value 21% adj. EBIT margin Innovator margins Creation +170 bps margin improvement over 3 years 2 +140 bps market share gain 3 gro
Slide 14: Mid-term guidance: Imaging
We pioneer breakthroughs in healthcare. For everyone. Everywhere. Mid-term guidance Comparable revenue growth 5 ─ 8% p.a. Fighting most threatening diseases Enabling efficient operations Expanding access to care Adjusted EBIT margin expanding by 20 ─ 80 bps p.a. Capital Markets Day 2021 | Imaging 14
Slide 15: Diagnostics
Diagnostics Capital Markets Day 2021 Deepak Nath President Laboratory Diagnostics 15 Unrestricted Unrestricted © Siemens Healthineers, 2021
Slide 16: Diagnostics market shows strong growth – Bifurcation continues
Diagnostics market shows strong growth – Bifurcation continues accelerated by COVID and healthcare trends Bifurcation of the market Healthcare Trends Point of Care Customer Pain Points Central Lab Customer Pain Points • Form factor and ease of use • Productivity and cost reduction • Connectivity and
Slide 17: We are in prime position to address growth segments
We are in prime position to address growth segments Connecting the Settings Point of Care Diagnostics in a bifurcating market Laboratory Diagnostics Decentralized Settings Consolidating Networked Care Settings Immunoassay * Specialty Blood Gas Workflow Hemostasis HbA1C * excellence * Hematology Urin
Slide 18: A comprehensive portfolio in attractive segments drives sustained and robust financial performance
A comprehensive portfolio in attractive segments drives sustained and robust financial performance Market position Financials FY213 Revenue Split FY214 14% €5.4 bn Market Share1 Revenue POC 31% AP >90k (LD) / >200k (POC) €0.7 bn 20% EMEA Growing installed base2 Adjusted EBIT 47% AM 33% 69% ~15k 13.3
Slide 19: Atellica Solution addresses our core market, maximizing productivity and customer value
Atellica Solution addresses our core market, maximizing productivity and customer value Laboratory Maximizing laboratory fewer fewer productivity 86% operators1 33% analyzers1 less time for daily less hands- Atellica >130% start-up & maintenance2 73% on time1 Solution Providing customer win rate amo
Slide 20: Atellica Solution fleet reliability and implementation strongly improved
Atellica Solution fleet reliability and implementation strongly improved Laboratory Reactive Service Visits2 Mean Cycles Between Failure3 -48% -48% +153% +153% Action Plan 2019: Continuous and significant Drive performance & improvement of reliability improvements fleet reliability1 Jan 19 Sep 21 Ja
Slide 21: Great Atellica Solution customer experience drives increased market demand and utilization
Great Atellica Solution customer experience drives increased market demand and utilization Laboratory New Orders2 Deal Quality3 Action Plan 2019: +53% +53% +40% +40% Focus Drive performance & on Profitable reliability improvements Growth1) FY18 FY19 FY20 FY21 Jan 19 Sep 21 Optimize installation and
Slide 22: Atellica ecosystem drives productivity for networked care
Atellica ecosystem drives productivity for networked care by augmenting and automating manual workflows Laboratory Expanding the reach of Atellica Solution Integrated IA/CC analytical units Atellica CI1900 Analyzer1 Cost-effective integrated testing and true standardization for low- and mid-volume a
Slide 23: Addressing a broader spectrum of clinical needs via menu in Oncology, Neurology, Cardiology
Addressing a broader spectrum of clinical needs via menu in Oncology, Neurology, Cardiology, and beyond Laboratory Extending laboratory diagnostics menu breadth and depth High- Sensitivity Differentiating assays Troponin I Neuro- Enabling better treatment by providing Blood Test filament unique clin
Slide 24: Enabling decentralized care by bringing informed and timely decisions to doctors and patients
Enabling decentralized care by bringing informed and timely decisions to doctors and patients Point of Care Immediate response to critical patient needs Comprehensive Blood Gas portfolio Advancing care delivery for catering to all customer workflows critically ill patients Respiratory & Cardiac Powe
Slide 25: Creating market shaping diagnostics innovation and expanding our customer base
Creating market shaping diagnostics innovation and expanding our customer base Creating Innovation Expanding our Reach leveraging newly established Center for Diagnostic Innovation led by Rangarajan Sampath, PhD by geographically and market segment focused initiatives Oncology Neurology China Manufa
Slide 26: Providing a quality portfolio of tests and solutions for COVID-19
Providing a quality portfolio of tests and solutions for COVID-19 diagnosis, management, and monitoring COVID-19 Diagnosis COVID-19 Management COVID-19 Monitoring Accurate and early detection Testing and managing patients with severe Detection and monitoring of infection COVID symptoms of immune res
Slide 27: Continuous execution of key initiatives to drive revenue growth and margin expansion
Continuous execution of key initiatives to drive revenue growth and margin expansion Commercial Improve deal quality Comparable revenue growth1 Excellence 4-6% p.a. Refine pricing ~2024 Drive higher instrument utilization Launch new products FY21 FY22 Service Increase remote service delivery Transfo
Slide 28: Strengthened leadership and team capabilities
Strengthened leadership and team capabilities Transformed Org Structure Enhanced Top Management to ensure focus and improve execution >50% change over the last two years – external hires and internal promotions Established dedicated commercial Commercial R&D Supply Chain and service structure – enab
Slide 29: Mid-term guidance: Diagnostics
We pioneer breakthroughs in healthcare. For everyone. Everywhere. Mid-term guidance Comparable revenue growth progressing to 4 ─ 6% p.a. Fighting most threatening diseases Enabling efficient operations Expanding access to care Adjusted EBIT margin progressing towards mid-teens in 2025 Note: The guid
Slide 30: Varian
Varian Capital Markets Day 2021 Chris Toth CEO Varian – A Siemens Healthineers Company 30 Unrestricted Unrestricted © Siemens Healthineers, 2021
Slide 31: We pioneer breakthroughs in healthcare. For everyone. Everywhere.
We pioneer breakthroughs in healthcare. For everyone. Everywhere. 31 31 Unrestricted © Siemens Healthineers, 2021
Slide 32: The cancer burden is growing and the gap in access is widening
The cancer burden is growing and the gap in access is widening Trends driving 30M increased survivorship new cases ✓ Earlier diagnosis 18M ✓ New treatments new cases ✓ Patient awareness ✓ Screening and Dx Barriers facing global providers ✓ Capital budgets ✓ Clinical skills gap 2018 2040 ✓ Technology
Slide 33: Strong foundation as the global market leader in cancer care
Strong foundation as the global market leader in cancer care Market position Financial FY22 targets Revenue Split FY212 >50% €2.9 – 3.1 bn Software / Tech Enabled Services Market Share1 Revenue 22% >9k 15 - 17% AP 28% AM 38% Equipment 45% Growing installed base 1 Adjusted EBIT margin EMEA 27% 18m ~1
Slide 34: Total synergies of >€350m by 2025 drive Varian segment margin well above 20%
Total synergies of >€350m by 2025 drive Varian segment margin well above 20% Margin improvements positively skewed over time • Digital offerings – accelerating our software and tech enabled services roadmap • Value Partnerships – better access to • Integrated solutions – reaching a new level c-level
Slide 35: Strongest cancer care channel in an attractive growth market
Strongest cancer care channel in an attractive growth market even stronger within Siemens Healthineers Americas Europe China • US market increasingly emphasizing value • Strong adaptive radiotherapy uptake • 14th 5-Year Economic Plan & 2030 and efficiency. Varian is best positioned via • Access to R
Slide 36: New market entry has doubled TAM in high growth areas
New market entry has doubled TAM in high growth areas 2025 Market 5 year average annual growth % €8.1B €6.7B €2.2B €.6B €17B+ 6% CAGR 16% CAGR 10% CAGR 6% CAGR Market 100% size 2019 acquisitions expand Varian to new ways 80% of helping patients 60% 40% Varian 20% market share >50% today New Growth 0
Slide 37: Radiation oncology solutions – Expanding innovation leadership
Radiation oncology solutions – Expanding innovation leadership Radiation Therapy The combination of Siemens Healthineers and Varian leads to a more comprehensive, fully integrated, streamlined and smarter way to fight cancer Workflow efficiency Software AI-powered, streamlined workflows drives throu
Slide 38: From 2 weeks to 2 hours to start treatment
2 to 2 challenge – shortening time from consultation to treatment “From 2 WEEKS to 2 HOURS to start treatment” Consultation Simulation 2 2 Treatment Planning weeks hours Treatment Capital Markets Day 2021 | Varian 38 Unrestricted © Siemens Healthineers, 2021
Slide 39: Adaptive Therapy Leadership
Adaptive Therapy Leadership Adaptive portfolio Clinical Evidence Clinical Adoption • Demonstrate improvement in Investigator Initiated outcomes for adaptive Varian Sponsored H&N Evaluated Disease Sites GBM >100 radiotherapy compared to non- H&N Orders adaptive techniques NSCL Metastatic Melanoma • 1
Slide 40: New horizons for delivering interventional oncology – Combining forces of Varian and Advanced Therapies
New horizons for delivering interventional oncology – Combining forces of Varian and Advanced Therapies Varian Expanding along therapy pathway Advanced Therapies Customer-centered, expanding Interventional Unique opportunity for an integrated portfolio First class interventional imaging Solutions an
Slide 41: Multi-Disciplinary Oncology (MDO)
Multi-Disciplinary Oncology (MDO) – improving efficiency, quality of care, and access to C-level decision makers • CTSI Oncology Services • Cloud Platform • CTSI India • On-prem Platforms • Programmatic Clinical Technology • Data & Analytics services Infra- Services structure Digitally- Enabled Serv
Slide 42: Varian Oncology as a Service: CHRISTUS Health
Varian Oncology as a Service: CHRISTUS Health Clinical Services + Technology OaaS™ Operations Increase quality standardized operations Hybrid on-site and remote services Eclipse Cloud Planner environment Increase efficiency centralized expertise Decrease cost & overhead Leading medical cloud-based i
Slide 43: Cardiac radioablation
Staying ahead of the innovation curve to help serve patients 1/2 Cardiac radioablation Noninvasive therapy for refractory ventricular tachycardia Noninvasive ablation Conventional ablation Note: Cardiac radioablation technologies are not yet approved by the FDA. Varian’s CRA system is currently unde
Slide 44: FLASH
Staying ahead of the innovation curve to help serve patients 2/2 FLASH FLASH Ultra-high dose treatment delivered in less than 1 second Conventional 10 Gy Normal Zebrafish Fli1 (Blood vessels) Tunel (cell death) pH3 (cell proliferation) Capital Markets Day 2021 | Varian 44 Note: FLASH therapy is unde
Slide 45: We pioneer breakthroughs in healthcare. For everyone. Everywhere.
We pioneer breakthroughs in healthcare. For everyone. Everywhere. Accelerating our Expanding our Driving our innovative cancer care impact addressable market R&D roadmap 45 45 Unrestricted © Siemens Healthineers, 2021
Slide 46: Mid-term guidance: Varian
We pioneer breakthroughs in healthcare. For everyone. Everywhere. Mid-term guidance Comparable revenue growth 9 ─ 12% p.a. Fighting most threatening diseases Enabling efficient operations Expanding access to care Adjusted EBIT margin progressing to ‘well above 20%’ in 2025 Capital Markets Day 2021 |
Slide 47: Advanced Therapies
Advanced Therapies Capital Markets Day 2021 Carsten Bertram President Advanced Therapies 47 Unrestricted Unrestricted © Siemens Healthineers, 2021
Slide 48: As pioneers in minimally invasive treatments, we address the most threatening diseases globally
As pioneers in minimally invasive treatments, we address the most threatening diseases globally … Cardiovascular Care Neurovascular Care Cancer Care Coronary artery disease is #1 cause of Only 12% of eligible patients receive 5 years survival rate for liver cancer death globally taking an estimated
Slide 49: … with a focus on fast growing procedures
… with a focus on fast growing procedures Cardiovascular Care Neurovascular Care Cancer Care 10% 20% 10% Complex coronary artery disease Thrombectomy Liver tumor ablation procedural growth1 procedural growth2 procedural growth3 Trend towards minimally invasive procedures and innovation in new device
Slide 50: Advanced Therapies at a glance
Advanced Therapies at a glance Market position Financials FY21 Revenue Split FY21 35% €1.7 bn Mobile C-Arms Market Share 1 Revenue 20% >45k €0.3 bn AP 32% EMEA 32% Growing installed base 2 Adjusted EBIT AM 36% ~4.5k 15% Angiography 80% Systems Employees Adjusted EBIT Margin Advanced image guidance a
Slide 51: New horizons for delivering interventional oncology – Combining forces of Advanced Therapies and Varian
New horizons for delivering interventional oncology – Combining forces of Advanced Therapies and Varian Advanced Therapies Expanding along therapy pathway Varian First class interventional imaging Unique opportunity for an integrated portfolio Customer-centered, expanding Interventional and tailored
Slide 52: Supporting better treatment for more patients – Enabled by excellent image-guidance technology
Supporting better treatment for more patients – Enabled by excellent image-guidance technology Procedural Procedural growth rate Cardiovascular Care Neurovascular Care growth rate 1 High increase of accuracy of lesion assessment Less time to treatment with angio-only 10% and of precision in stent pl
Slide 53: Transforming Cardiovascular Care – combining robotics and imaging
Transforming Cardiovascular Care – Targeting better outcomes by combining robotics and imaging Integrated less-invasive Higher predictability of wire Precise guidance of wires Post treatment evaluation angiography derived movements and accurate and stent placements with vFFR and ClearStent Fractiona
Slide 54: Transforming Neurovascular Care – combining robotics and imaging
Transforming Neurovascular Care – Targeting better outcomes by combining robotics and imaging Complete analysis of the Precise measurement and Excellent guidance of wires, Reliable outcomes as a result aneurysm in less than one virtual stent placement with stents and coils with robotic of post treat
Slide 55: Transforming Neurovascular Care – combining robotics and imaging
Transforming Neurovascular Care – Targeting better outcomes by combining robotics and imaging The CorPath GRX system for neurovascular treatment is not available in all countries. Capital Markets Day 2021 | Advanced Therapies 55 Its future availability cannot be guaranteed Unrestricted © Siemens Hea
Slide 56: Continuous investment into endovascular robotics is paying off
Continuous investment into endovascular robotics is paying off Revenue stream along three dimensions • Capital equipment – CorPath GRX robot Outlook • Consumable item per procedure - cassette • Establish robotics into • Service clinical routine • Continuous integration of 1 image-guidance and roboti
Slide 57: AT is essential for long-term Value Partnerships with customers
AT is essential for long-term Value Partnerships with customers to address key needs along the entire clinical pathway Deliver outcomes that matter Moving from transactional business to patients, hospitals and staff to long-term partnerships Cardio Neuro • Higher customer intimacy Accelerated • Mutu
Slide 58: Mid-to-high single-digit growth and margin increase, with pioneering solutions
Mid-to-high single-digit growth and margin increase, with pioneering solutions solving key customer needs Leverage Scale Establish most advanced digital solutions… robotics into image guidance … clinical routine … … for better treatments for more … enabling increasingly complex … expanding clinical
Slide 59: Mid-term guidance: Advanced Therapies
We pioneer breakthroughs in healthcare. For everyone. Everywhere. Mid-term guidance Comparable revenue growth 5 ─ 8% p.a. Fighting most threatening diseases Enabling efficient operations Expanding access to care Adjusted EBIT margin progressing towards 20% in 2025 Capital Markets Day 2021 | Advanced
Slide 60: Glossary
Glossary Adjusted revenue is defined as consolidated revenue reported in the company’s consolidated statements of income adjusted for effects in line with revaluation of contract liabilities from IFRS 3 purchase price allocations. (Adjusted) Comparable revenue growth is defined as the development of