Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Investor Day (June 2021)
17 slides from Siemens Aktiengesellschaft's investor day presentation, Jun 24, 2021
Slide 1: Accelerating Value Creation
Accelerating Value Creation Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 2: Notes and forward-looking statements
Notes and forward-looking statements This document contains statements related to our future business and incorrect, actual results, performance or achievements of Siemens financial performance and future events or developments involving may (negatively or positively) vary materially from those desc
Slide 3: Successful transformation driving step-change in business profile
Successful transformation driving step-change in business profile Siemens Siemens • De-risked and focused business model Energy spin-off +42% • Better mix, lower project and solution share Siemens • Higher profit conversion from product Healthineers and software businesses +32% • Structurally improv
Slide 4: Accelerating value creation for strong and sustainable shareholder return
Accelerating value creation for strong and sustainable shareholder return … Stringent Profitable capital growth allocation Strong cash generation … based on strong investment grade rating Page 4 Unrestricted | © Siemens 2021 | Capital Market Day | 2021-06-24
Slide 5: Driving profitable growth by leveraging investments in digitalization
Driving profitable growth by leveraging investments in digitalization R&D intensity Revenue Margin range FY 2016–2020 8% growth (comp.) 5% Maintained 5–7% 17–23% 4–6% 11–16% 1 2 Competition Siemens • Focused capital allocation and industry-leading investments 5–8% 10–13% in innovation; €22bn investe
Slide 6: Upgraded ambitions reflected in Siemens Financial Framework
Upgraded ambitions reflected in 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 Indu
Slide 7: Amplified focus on cash earnings – Committed to high single-digit earnings growth
Amplified focus on cash earnings – Committed to high single-digit earnings growth In € High Target (“1-growth”): 0.99 1 – comp. single-digit revenue growth Ø 1.13 growth rate Cash conversion rate 6.39 6.39 (all in) 1.52 5.39 1.03 EPS pre PPA¹ 0.95 FY 2018 FY 2019 FY 2020 FY 2021e mid-term FY 2018 FY
Slide 8: Driving ROCE to target range – Continued commitment to strong balance sheet
Driving ROCE to target range – Continued commitment to strong balance sheet up to 15–20% 1.5x 12.7% Industrial net debt/ ~2x 11.1% EBITDA 1.3x 7.8% ROCE, excluding 0.6x Therein: Varian-related 0.4x Varian ~+1x M&A effects FY 2018 FY 2019 FY 2020 FY 2021e mid-term FY 2018 FY 2019 FY 2020 FY 2021e mid
Slide 9: Participating in value creation through Siemens Healthineers' acquisition of Varian
Participating in value creation through Siemens Healthineers’ acquisition of Varian • Unique combination of diagnosis • Accretive to revenue growth • Attractive structural and innovation and therapy, significantly increasing • Net income affected by driven growth relevance in healthcare acquisition-
Slide 10: Stringent execution of competitiveness programs is driving margin expansion
Stringent execution of competitiveness programs is driving margin expansion Cumulative savings in million € 420 450 390 320 100 90 330 60 160 190 450 320 40 300 95 270 5 160 150 90 FY 2021e FY 2023e FY 2021e FY 2023e FY 2021e FY 2021e FY 2023e Overachievement/additional commitment CMD 2019 target –
Slide 11: Increased transparency and clear commitments below the line
Increased transparency and clear commitments below the line In million € Businesses Innovation* Governance* Pensions Financing PPA Legacy* 7,560 • SFS • Next47 • Governance • DI -397 For example: • POC1 • Technology costs • SI -50 • ARO Hanau • SRE • Brand fee • MO -66 • Olkiluoto • SE Investment •
Slide 12: Financial Services – Prioritization on capital allocation in the core and de-risking
Financial Services – Prioritization on capital allocation in the core and de-risking SFS total Therein: Debt Business Equity Business Return on Equity (after tax) 11.7% 20.2% 17.0% 9.5% 12.2% 16.3% 27.3% 61.2% 28.9% Earnings before 345 305 272 279 242 taxes (€m) 184 82 129 37 Total assets (€bn) 28.9
Slide 13: Financial Services – Strong long-term track record of supporting Siemens
Financial Services – Strong long-term track record of supporting Siemens business with profound in-house industrial business expertise Today SFS as captive financing arm SFS with increasingly important role as key integrator within Siemens ecosystem of Siemens Highly reliable and professional partne
Slide 14: Portfolio Companies – Further active portfolio management
Portfolio Companies – Further active portfolio management €3.2bn €270m (FY 2020 excl. Flender) Large Drive Applications • Stringent execution for remaining fully Siemens Logistics owned Portfolio Companies Commercial Vehicles • Target FY 2022: • Transaction closed in Q2 2021 Fully owned >5% profit m
Slide 15: Stringent capital allocation balancing investments and shareholder return
Stringent capital allocation balancing investments and shareholder return FY 2016–2020 FY 2016–2020 Strategic Imperatives 1 Areas of growth? €8bn €6bn Acquisitions Share 2 Potential profit pool? buyback 3 Why Siemens? €10bn 4 Synergetic value? Capex 5 Paradigm shift? €15bn €22bn Dividends 6 Sustaina
Slide 16: Siemens continues strong focus on total shareholder return
Siemens continues strong focus on total shareholder return Avg. dividend yield: 3.3% CAGR Capital Siemens In € +7% Market Day June 16, 2021 4 3 2 ¹ May 8, 2019 €96.60³ +51% €136.78 1 Siemens TSR 0 DAX FY 2009 FY 2020 +29% In billion € Up to Up to 3.0 3.0 Current share buyback 0.6 New Total of 1.3 ~1
Slide 17: Fully committed to accelerating value creation
Fully committed to accelerating value creation Stringent capital allocation 1 priorities balancing investments and shareholder returns Leveraging innovation power Stringent capital Profitable 2 and continuing transformation to drive profitable growth growth allocation Entire organization geared 3 to