Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Q1 2020 Earnings Presentation

20 slides from Siemens Aktiengesellschaft's earnings presentation, Feb 5, 2020

1. Slide 1: Strong demand delivers record high for order backlog – focus on energy businesses

   Strong demand delivers record high for order backlog – focus on energy businesses Joe Kaeser, President and CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Analyst Call, February 5, 2020 Unrestricted © Siemens 2020 siemens.com

2. 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

3. Slide 3: Slow start as expected – Guidance for FY 2020 confirmed

   Q1 FY 2020 Slow start as expected – Guidance for FY 2020 confirmed Q1 - Key Figures Outlook FY 2020 confirmed Orders -4% Revenue -1% Growth IB Adj. EBITA margin DI / SI / MO margin 8.3% excl. severance Cost savings as planned IB Free Cash Flow €0.9bn EPS Earnings per share €1.33 Energy spin off on t

4. Slide 4: Digital Industries (DI): Short cycle still challenging - large Software wins drive orders

   Digital Industries (DI) Short cycle still challenging - large Software wins drive orders Orders Revenue Revenue €bn +1%¹) -4%¹) Discrete still weak 4.1 4.2 3.9 3.8 Process flat 0.9 1.0 Solid Software growth 2.9 2.7 Q1 FY 19 Q1 FY 20 Q1 FY 19 Q1 FY 20 Stringent execution of cost Adj. EBITA Margin Fre

5. Slide 5: Smart Infrastructure (SI): Solid performance - portfolio strengthened through C&S Electric

   Smart Infrastructure (SI) Solid performance - portfolio strengthened through C&S Electric Orders Revenue Revenue up across most €bn businesses -2%¹) +3%¹) 3.7 3.8 Further softening in 3.3 3.5 Products 1.3 1.3 2.0 2.2 Q1 FY 19 Q1 FY 20 Q1 FY 19 Q1 FY 20 Implementation of competitiveness program Adj.

6. Slide 6: Gas and Power (GP): Spin off preparation on track

   Gas and Power (GP) Spin off preparation on track Orders Revenue €bn Revenue growth in -9%¹) 0%¹) Transmission offset by 6.0 5.6 4.5 4.5 other businesses 1.9 1.9 2.5 2.6 Q1 FY 19 Q1 FY 20 Q1 FY 19 Q1 FY 20 Less favorable mix Expenses for ramp up of Adj. EBITA Margin Free Cash Flow stand-alone company

7. Slide 7: Mobility (MO): Sustainable margin performance for 25 quarters

   Mobility (MO) Sustainable margin performance for 25 quarters Orders Revenue Orders down on tough €bn -64%¹) comps 4.5 Revenue ramp up as -1%¹) expected in quarters to 2.2 2.2 come 1.7 Q1 FY 19 Q1 FY 20 Q1 FY 19 Q1 FY 20 Profit impact from lower Adj. EBITA Margin Free Cash Flow revenue €m -90bps 9-12

8. Slide 8: Disappointing profitability of listed Strategic Companies

   Disappointing profitability of listed Strategic Companies Orders Revenue Orders Revenue €bn €bn +79%¹) +13%¹) +5%¹) 4.6 4.1 3.5 3.3 3.6 -13%¹) 2.5 2.3 2.0 Q1 FY 19 Q1 FY 20 Q1 FY 19 Q1 FY 20 Q1 FY 19 Q1 FY 20 Q1 FY 19 Q1 FY 20 Adj. EBITA Margin Free Cash Flow Adj. EBITA Margin Free Cash Flow €m 7-11

9. Slide 9: Q1 FY 2020 - Below Industrial Businesses

   Q1 FY 2020 - Below Industrial Businesses €m 243 -263 212 3 -294 1,429 -5 Minorities -238 -€8m therein: 1,088 2 1,089 -€56m Pensions therein: -€207m Corp. Items Gain from sale of an equity investment therein: +€219m Tax Rate @ 18.0% 1,081 Gain from transfer of an investment to Siemens Pension Trust I

10. Slide 10: Outlook FY 2020 confirmed

    Outlook FY 2020 confirmed FY20 Framework Siemens Group FY20 Framework Siemens non-listed Companies ▪ Book-to-bill > 1 ▪ Moderate comp. revenue growth Comparable Adj. EBITA margin Mid point growth revenue growth expectation1) + 4% 7.00 Digital Industries Flat 17 - 18% 6.41 6.30 Smart Infrastructure M

11. Slide 11: Appendix

    Appendix Unrestricted © Siemens 2020 Page 11 February 5, 2020 Q1 FY 2020 Analyst Call

12. Slide 12: Q1 FY 2020 Impact from IFRS 16

    Q1 FY 2020 Impact from IFRS 16 Q1 2020 Impact IFRS 16 Industrial Businesses Adj. EBITA Margin 7.3% Minor impact ~70% in Strategic Companies Free Cash Flow €863m +€0.1bn ~30% in Operating Companies Cash Conversion Rate 0.60 +0.08 Siemens Group Net income €1.1bn Minor impact EBITDA (c/o) €2.2bn +€0.2b

13. Slide 13: Provisions decreased in Q1 mainly due to increased discount rate & contributions

    Provisions decreased in Q1 mainly due to increased discount rate & contributions incl. a transfer of an investment to Siemens Pension Trust Q1 FY 2020 – Pensions and similar obligations in €bn¹ FY 2017 FY 2018 FY 2019 Q1 FY 2020 Defined benefit obligation (DBO)² -36.9 -35.9 -40.3 -39.2 Fair value of

14. Slide 14: Q1 FY 2020 Net debt bridge

    Q1 FY 2020 Net debt bridge Ind. Net Debt/ EBITDA (c/o) in €bn Operating Activities 0.9x (Q4 FY19: 0.6x) 22.7 27.4 10.0 therein a.o.: • M&A -1.6 17.4 • Capex -0.5 • SFS -0.1 1.1 -0.6 -2.2 -3.0 Net Debt Cash flows from ∆ Working Capital Cash flows from Financing and Net Debt Net Debt Ind. Net Debt ope

15. Slide 15: Q1 FY20 Profit Bridge from SHS disclosure to SAG disclosure

    Q1 FY20 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 February 3, 2020) disclosure (as of February 5, 2020) 13.5% 14.2% 13.7% 509 492 17 484 11.5% -10 30 -17 6 -45 45 412 EBIT Transaction Severance P

16. Slide 16: Outlook for FY 2020

    Outlook for FY 2020 As disclosed on February 3, 2020 Unrestricted © Siemens 2020 Page 16 February 5, 2020 Q1 FY 2020 Analyst Call

17. Slide 17: Q1 FY20 Profit Bridge from SGRE to SAG disclosure

    Q1 FY20 Profit Bridge from SGRE to SAG disclosure Different profit definitions at SGRE and SAG to be considered in models in €m disclosure (as of February 4, 2020) disclosure (as of February 5, 2020) -6.8% -11.5% -8.3% -7.9% -229 -136 -27 -3 1 7 -165 -159 -66 66 EBIT Integration & PPA effects EBIT P

18. Slide 18: Outlook for FY 2020

    Outlook for FY 2020 As disclosed on February 4, 2020 Unrestricted © Siemens 2020 Page 18 February 5, 2020 Q1 FY 2020 Analyst Call

19. Slide 19: Siemens Financial Framework

    Siemens Financial Framework Siemens (targets over the cycle) Growth Siemens Cash conversion (CCR) comparable revenue growth Industrial Businesses margin3) FCF IB / Adj. EBITA IB 4 – 5% 11 – 15% CCR = 1 – comp. growth rate Capital efficiency Capital structure Dividend payout ratio ROCE1) Industrial n

20. Slide 20: Financial calendar

    Financial calendar Feb 5, 2020 May 8, 2020 Aug 6, 2020 Nov 12, 2020 Q1 Release & AGM Q2 Release Q3 Release Q4 Release Mar 18, 2020 May 19, 2020 Jun 12, 2020 Sep 10, 2020 investorrelations@siemens.com BofA Conference EPG Conference JPM Conference MS Conference www.siemens.com/investor London Miami Lo

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