Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Q4 FY2011 Earnings Presentation
28 slides from Siemens Aktiengesellschaft's earnings presentation, Nov 10, 2011
Slide 1: Q4 – Strong End to an Excellent Year
Q4 – Strong End to an Excellent Year Peter Löscher, President and CEO Joe Kaeser, CFO Q4 FY 11 Analyst conference November 10, 2011 Page 1 Q4 FY 2011, Analyst Conference, November 10, 2011 Copyright © Siemens AG 2011. All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,”
Slide 3: We achieved our FY 2011 guidance
We achieved our FY 2011 guidance FY 2011 Outlook FY 2011 Actuals New Orders (cont. ops.) Revenue (cont. ops.) We expect organic comp. +16% comp. order intake to show +7% 11.5 85.6 a significant 74.1 69.0 4.5 73.5 increase compared to fiscal 2010. Supported also by our already strong FY 2010 FY 2011
Slide 4: Q4 contributes clear revenue growth, strong profitability and excellent free cash flow
Q4 contributes clear revenue growth, strong profitability and excellent free cash flow Siemens (continuing operations), in €m Q4 FY 101) Q4 FY 11 Change New orders 21,589 21,157 2%2) Revenue 19,403 20,351 9%2) Book-to-bill 1.11x 1.04x Profit Total Sectors 7913) 2,1664) 174% Income (from continuing o
Slide 5: Large orders in Germany drive organic order growth – strongest revenue growth in Americas and Asia
Large orders in Germany drive organic order growth – strongest revenue growth is in the Americas and Asia Regional business split Major order wins in Q4 Industry: Q4 FY 11 Order growth y-o-y1) Russian Railways ordered 1200 Desiro RUS type regional trains (JV with Sinara) and closed a 40 year Europe/
Slide 6: Short cycle businesses continue to perform well
Short cycle businesses continue to perform well Q4 FY 11 Orders Revenue Profit Important profit drivers in Q4 y-o-y1) y-o-y1) margin Siemens 2% 9% IA and DT – Continued strong growth drives Industry 3% 11% 11.3% capacity utilization and earnings conversion Industry Automation 11% 14% 19.3% Mobility
Slide 7: One Siemens cockpit – Operational performance on track – cash is still king
One Siemens cockpit – Operational performance on track – cash is still king Financial target system Growth1) ! Margins compared to industry benchmarks Revenue growth (rolling 4 quarters Q4 FY 2011) EBITDA Margins (FY 2011) Industry 13.3% 10-15% Siemens 6.6% Energy 14.3% 10-15% -3.3% Competitors1) 9.
Slide 8: Proposed dividend is €3.00: Increase of 11%
Proposed dividend is €3.00: Increase of 11% € Dividend payout ratio 1) ONE SIEMENS 3.00 3.0 Dividend per share 100% 2.70 Dividend payout ratio (range 30-50%) 90% 2.5 80% 2.0 70% 58% 1.60 1.60 1.60 60% 1.5 41% 50% 36% 56% 46%3) 40% 1.0 30% 34%3) 20% 0.5 23% 10% 0.0 0% 2007 2008 2009 2010 2011 €m Divi
Slide 9: Excellent free cash flow generation due to sustained working capital management
Excellent free cash flow generation due to sustained working capital management €m Long-term sustainable working capital 7,013 management (NWC turns based on Current Total Sector structure) 9.1 9.5 9.6 9.3 5,150 7.8 4,058 FY 07 FY 08 FY 09 FY 10 FY 11 3,641 1,929 1,727 697 866 519 928 FCF from cont.
Slide 10: Outstanding Q4 free cash flow generation
Outstanding Q4 free cash flow generation Free cash flow (cont. ops.) €bn 7.0 5.9 4.11) 2.9 Therein: 3.5 Q4 Therein: EBITDA +1.2 CAPEX +0.2 2.1 EBITDA +0.8 NWC2) +2.3 CAPEX -0.2 (including NWC2) -2.1 Q3 Settlement3) +1.0) Tax +0.3 1.0 Tax -0.4 1.3 0.4 Q2 1.1 0.7 Q1 FY 2009 FY 2010 FY 2011 1) Approxim
Slide 11: Excellent operational cash performance driven by strong focus on working capital management
Excellent operational cash performance driven by strong focus on working capital management €bn Operating activities Adj. ind. ND/EBITDA -0.15x Therein e.g.: Adj. ind. Income +1.8 Therein e.g.: 1.5 D&A +0.8 SFS invest -1.3 ND/EBITDA Capex -0.9 Tax -0.3 0.03x NSN -0.5 6.5 -0.4 1.6 6.5 -0.3 Pension -7
Slide 12: Strong Q4 and FY 11 performance below the Sector line
Strong Q4 and FY 11 performance below the Sector line Q4 FY 11 ‘Below Sectors’ FY 2011 ‘Below Sectors’ €m €m 123 2 2,166 428 150 -23 9,093 -49 -40 -273 -90 24 -26 -414 Therein: 7,011 +267m employee -2,231 Therein: bonus -53m AtoS 1,228 -99m regional risks reimbursement +75m pension -601 -54m related
Slide 13: Volatility remains below the Sectors' performance in FY 2012
Volatility Strong Q4remains and FY ′below the Sectors′ 11 performance in FY below 2012 the sector line FY 2011 ‘Below Sectors’ What to expect for FY 2012 €m 150 Equity Investments remains volatile – 428 9,093 NSN expected to have a material impact -40 -273 -90 -26 due to further repositioning activi
Slide 14: Margin expansion due to high capacity utilization and excellent project execution outweigh Opex increase
Margin expansion due to high capacity utilization and excellent project execution outweigh Opex increase Income Cont. Ops (after taxes)1) Gross profit €bn €bn +3.1 22.1 Income Margin 20.0 -2.3 +1.3 7.0 30.1% Headwind in FY 11 4.3 29.0% 9.5% 6.2% Gross Customer Purcha- Productivity, Gross Profit Pric
Slide 15: What to expect in FY 2012? Continuous investment in growth
What to expect in FY 2012? Continuous investment in growth: > €1.4bn in Opex & Capex Customer Price Change Opex Capex Total Sectors in % of revenue (Cont. Ops.) Total Sectors in €bn in €bn 15.3 – 15.5 1.9 – 2.1 1.1 – 1.3 0.3 – 0.5 14.2 1.6 -2.5% – -3.0% primarily -2.8% “Selling” & 8.1 “R&D” 2.2 3.9
Slide 16: New Sector organization of Siemens aligned with the global trends
New Sector organization of Siemens aligned with the global trends Infrastructure Energy Healthcare Industry & Cities Fossil Power Generation Imaging & Therapy Industry Automation Rail Systems Wind Power Clinical Products Drive Technologies Mobility and Logistics Solar & Hydro Diagnostics Customer Se
Slide 17: Siemens is well positioned to reach the mid-term revenue target of €100 bn
Siemens is well positioned to reach the mid-term revenue target of €100 bn Estimated revenue contribution to Growth levers are in place achieve medium term goal of €100bn1) Resilient business portfolio ~20% >€100bn Focus on innovation driven ~25% growth markets Strong emerging market ~10% footprint
Slide 18: Siemens portfolio proved resilience through years of macroeconomic turbulence
Siemens portfolio proved resilience through years of macroeconomic turbulence Revenue (cont. ops.) Income (cont. ops.) Comparable growth rates in % Income before tax in % of revenue 12.6% 8.7% 9%1) 7% 5.8% 3.5% 0% -3% Revenue in bn € Income after tax in bn € 73.5 7.0 69.6 70.1 69.0 4.3 2.5 1.6 FY 20
Slide 19: Growth in 2011 is driven by green portfolio and emerging markets
Growth in 2011 is driven by green portfolio and emerging markets Revenue Environmental Portfolio Contribution of Emerging Markets Revenue3) Employees €bn Target €bn +12% +15% > 40 21.8 24.1 98k 85k 29.9 27.4 FY 10 FY 11 FY 10 FY 11 32% 33% ~25% ~27% % of total revenue % of total employees FY 101) FY
Slide 20: Outlook 2012
Outlook 2012 For fiscal 2012 we expect moderate organic revenue growth compared to fiscal 2011, and orders again exceeding revenues for a book-to-bill well above 1. We anticipate continued strong earnings performances in our businesses, despite ongoing pricing pressure and higher operating expenses.
Slide 21: Financial calendar
Financial calendar November November 10 – 11, 2011 Q4 Analyst Conference and UK Roadshow (London) November 16 – 17, 2011 US Roadshow (Boston, New York) November 24, 2011 German Roadshow (Frankfurt) December 1, 2011 December French Roadshow (Paris) December 2, 2011 Release of FY 2011 financials in ne
Slide 22: Siemens investor relations contact data
Siemens investor relations contact data Mariel von Drathen +49-89-636-33780 Munich Office +49-89-636-32474 Internet: http://www.siemens.com/investorrelations Email: investorrelations@siemens.com Fax: +49-89-636-32830 Page 22 Q4 FY 2011, Analyst Conference, November 10, 2011 Copyright © Siemens AG 20
Slide 23: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) To supplement Siemens’ Consolidated Financial Statements presented in accordance with International Financial Reporting Standards, or IFRS, Siemens presents the following supplemental financial measures: • New orders and order backlog; • Adjus
Slide 24: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) New orders and order backlog - continued Order backlog represents an indicator for the future revenues of our Company resulting from already recognized new orders. Order backlog is calculated by adding the new orders of the current fiscal yea
Slide 25: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Total Sectors Profit Siemens uses Total Sectors Profit to measure the sum of Profit of the three Sectors Industry, Energy and Healthcare. Profit of the Sectors is earnings before financing interest, certain pension costs and income taxes. Ce
Slide 26: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) ROCE (adjusted) - continued ROCE (adjusted) at the Siemens group level on a continuing and discontinued operations basis Siemens also presents group ROCE (adjusted) on a continuing and discontinued operations basis. For this purpose, the nume
Slide 27: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Adjusted EBITDA, adjusted EBIT and adjusted EBITDA margins on a continuing operations basis – continued Adjusted EBITDA margins at the Sector level Siemens defines adjusted EBITDA margins at the Sector level as the ratio of adjusted EBITDA to
Slide 28: Reconciliation and Definitions for Non-GAAP Measures (VI)
Reconciliation and Definitions for Non-GAAP Measures (VI) Limitations on the usefulness of Siemens’ supplemental financial measures The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular: • With respect to new orders and order backlog