Siemens Healthineers Ag · XETR:SHL
Siemens Healthineers — J.P. Morgan Healthcare Conference 2022
35 slides from Siemens Healthineers's conference presentation, Jan 11, 2022
Slide 1: J.P. Morgan Healthcare Conference
J.P. Morgan Healthcare Conference Siemens Healthineers AG Bernd Montag, CEO Chris Toth, CEO Varian – A Siemens Healthineers Company January 11, 2022 Unrestricted © Siemens Healthineers, 2022
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: We pioneer breakthroughs in healthcare. For everyone. Everywhere.
We pioneer breakthroughs in healthcare. For everyone. Everywhere. Unrestricted © Siemens Healthineers, 2022
Slide 4: We successfully delivered on our Upgrading priorities, now entering New Ambition
We successfully delivered on our Upgrading priorities Now entering New Ambition UPGRADING NEW AMBITION now 2019 REINFORCING Delivered on our Upgrading priorities… ….while managing through the pandemic • Achieved our financial targets • Closed the transformative combination with Varian • Launched bre
Slide 5: New Ambition - Accelerating growth
New Ambition - Accelerating growth Comparable revenue growth Adj. basic EPS growth 6 to 8% 12 to 15% p.a. p.a. Note: The guidance 2023-25 is based on current foreign exchange rate assumptions and on the current portfolio; excluding COVID-19 rapid antigen test contribution Unrestricted © Siemens Heal
Slide 6: Our unique capabilities
Our unique capabilities Patient Twinning Precision Therapy Personalization of diagnosis, Intelligent and image guided therapy selection and monitoring, treatment for the most after care and managing health threatening diseases Digital, Data and AI Leveraging digital, data and AI and advance provider
Slide 7: Our unique capabilities enable breakthrough innovations
Our unique capabilities enable breakthrough innovations Patient Twinning Precision Therapy MAGNETOM Atellica CorPath GRX Ethos Free.Max CI1900 Advancing into neuro- Taking the lead in Breaking Bringing vascular interventions adaptive barriers Atellica technology into low- cancer in MRI to-mid volume
Slide 8: Unmatched global footprint and customer proximity
Unmatched global footprint and customer proximity Americas EMEA ~9,000 ~12,000 sales & service employees sales & service employees APAC Manu- ~8,000 R&D sales & service employees facturing ~20,000 ~11,500 Note: Share of employees in manufacturing (incl. supply chain employees, i.e. logistics, order
Slide 9: Unmatched relevance as a holistic partner
Unmatched relevance as a holistic partner … … for a consolidating and transforming customer base Office based Affil. Hospital Affil. Hospital Affil. Hospital Unique customer access specialties Outpatient Center • Unmatched C-level relationships • addressing all major departments Commercial Lab • add
Slide 10: Addressing the greatest challenges and opportunities in Healthcare
New Ambition Addressing the greatest challenges opportunities in Healthcare Leading causes of death1 Cardiovascular 18m (32%) Unrealized opportunities Cancer 10m (18%) Neurological Disorders 7m (12%) … to fight the most threatening diseases Cost pressure Consolidation Untapped potential Staff shorta
Slide 11: New Ambition: Addressing the greatest opportunities in Healthcare
New Ambition Addressing the greatest opportunities in Healthcare • Comprehensive cancer care Fighting the most threatening diseases • Image guidance and robotics in neurovascular and cardiovascular care • Further build C-level access Enabling efficient operations • Grow Value Partnerships • Drive di
Slide 12: Each business with razor sharp focus
New Ambition Each business with razor sharp focus… Patient Twinning Precision Therapy Imaging Varian Expand #1 position & create new markets, Accelerate cancer care impact building on unmatched innovation power & scale together as one Diagnostics Advanced Therapies Accelerate growth & expand margins
Slide 13: Mid-term guidance for comparable revenue growth
Mid-term guidance for comparable revenue growth • Imaging growth at 5 ─ 8% p.a. 6 to 8% p.a. • Diagnostics growth progressing to 4 ─ 6% p.a. • Varian growth at 9 ─ 12% p.a. • Advanced Therapies growth at 5 ─ 8% p.a. Note: The guidance for 2023-25 is based on current foreign exchange rate assumptions
Slide 14: Mid-term guidance for adjusted basic EPS growth
Mid-term guidance for adjusted basic EPS growth • Imaging margin expanding by 20 ─ 80 bps p.a. 12 to 15% p.a. • Diagnostics margin progressing towards mid-teens in 2025 • Varian margin progressing to ‘well above 20%’ in 2025 • Advanced Therapies margin progressing towards 20% in 2025 Note: The guida
Slide 15: We pioneer breakthroughs in healthcare. For everyone. Everywhere.
We pioneer breakthroughs in healthcare. For everyone. Everywhere. Comparable revenue growth 6 ─ 8% p.a. Fighting most threatening diseases Enabling efficient operations Expanding access to care Adj. basic EPS growth 12 ─ 15% p.a. Note: The guidance for 2023-25 is based on current foreign exchange ra
Slide 16: Varian
Varian J.P. Morgan Healthcare Conference Chris Toth CEO Varian – A Siemens Healthineers Company Unrestricted Unrestricted © Siemens © Siemens Healthineers, Healthineers AG, 20222022 l 16
Slide 17: Varian mid-term guidance
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 Note: The guidance for 202
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 Unrestricted © Siemens Healthineers AG, 2022 l 23
Slide 24: 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 25: New horizons for delivering interventional oncology
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 26: Multi-Disciplinary Oncology (MDO) – improving efficiency, quality of care, and access
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 27: 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 28: Unrestricted © Siemens Healthineers AG, 2022 l 28
Unrestricted © Siemens Healthineers AG, 2022 l 28
Slide 29: Appendix
Appendix Unrestricted © Siemens Healthineers AG, 2022 l 29
Slide 30: Outlook 2022 – underlying profile fully in line with mid-term targets
Outlook 2022 – underlying profile fully in line with mid-term targets Comparable revenue growth Adj. basic earnings per share Ex antigen: 5 to 7% Ex antigen: +17 to +23% 0 to 2% €2. to €2.2 Note: The outlook is based on current foreign exchange rate assumptions and on the current portfolio; excludin
Slide 31: Leading businesses uniquely combining focus and scale
Leading businesses… …uniquely combining focus and scale Patient Twinning Precision Therapy Imaging Varian Revenue Margin Recurring revenue Revenue Margin Recurring revenue €9. bn 21% ~40% €2.9-3.1bn 15-17% ~50% • Computed Tomography • X-ray Products • Radiation Oncology Solutions • Magnetic Resonanc
Slide 32: Innovating to sustainably enable healthcare for everyone, everywhere
Innovating to sustainably enable healthcare for everyone, everywhere Increasing Access to Care All future buildings will DE&I is integral part of is a core strategy be carbon-neutral our company culture Stroke Care in Mekong Delta, Vietnam Healthineers Campus Bangalore, India Fostering diversity in
Slide 33: Innovating to sustainably enable healthcare – Our targets
Innovating to sustainably enable healthcare for everyone, everywhere – Our targets Improve quality of Contribute to a Advance diversity and life through access to regenerative and inclusion and drive healthcare and innovation healthy environment employee engagement 220’ 130 kt 26% patient touchpoint
Slide 34: Disclaimer
Disclaimer Atellica CI1900: Currently under development and not yet commercially available. Its future availability cannot be guaranteed AI-Rad Companion: AI-Rad Companion consists of several health products and medical devices in their own right, and products under development. AI-Rad Companion is
Slide 35: 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
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