Slide 1: Solid second-quarter performance – Outlook confirmed
Solid second-quarter performance – Outlook confirmed Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2024 | Investor Relations | Q2 Analyst Call | 2024-05-16
Slide 2: Notes and forward-looking statements
Notes and forward-looking statements This document contains statements related to our future business and or not at all or assumptions prove incorrect, actual results, performance or financial performance and future events or developments involving achievements of Siemens may (negatively or positive
Slide 3: Q2 Business highlights
Q2 Business highlights Solid performance ROBUST TOPLINE SOLID EXECUTION SUSTAINABLE STRATEGY Orders solid Stringent conversion Portfolio optimization • Book-to-bill 1.07; SI, MO, SHS >1 • Q2 IB profit of €2.5bn • Divestment of Innomotics to KPS • DI sequentially up, driven by SW • IB margin at 14.0%
Slide 4: Q2 Key Financials
Q2 Key Financials Orders Revenue IB Profit margin €20.5bn €19.2bn 14.0% -12% flat EPS pre PPA Free cash flow Industrial Net debt/EBITDA €2.73 €1.3bn 1.1x Note: Orders and Revenue growth comparable Page 4 Unrestricted | © Siemens 2024 | Investor Relations | Q2 Analyst Call | 2024-05-16
Slide 5: Clear progress to optimize portfolio and sharpen technology company profile
Clear progress to optimize portfolio and sharpen technology company profile Bolt-on IDT acquisitions ebm-papst Announced Q2-24 FY 2024 FY 2025ff Process Gas Industrial Chromatography Business Closed Q3-24 Strategic options • Divestment to KPS signed best owner • Purchase price of €3.5bn (Enterprise
Slide 6: Siemens EcoTech label creates industry-leading sustainability transparency
Siemens EcoTech label creates industry- New Electronic Circuit Protection Device leading sustainability transparency is scaling sustainability impact FOUNDATION SENTRON ECPD Robust (Electronic Circuit Protection Device) Ecodesign approach Ultra-fast Multifunctional Parameterizable Sustainable SINAMI
Slide 7: Hanover Fair – Go digital, become sustainable
Hanover Fair – “Go digital, become sustainable” Cutting edge technologies and strong partnerships drive customer competitiveness Siemens & NVIDIA Siemens, Microsoft, Schaeffler Siemens Xcelerator Enabling the Industrial Generative AI for Electrification X Metaverse Engineering & Shopfloor • Launch o
Slide 8: AI demand is a significant inflection for accelerated data center investment
AI demand is a significant inflection for accelerated data center investment Leverage strong portfolio and capacity expansion to gain market share Comprehensive portfolio Key market trends Financial Services • Unprecedented AI growth drives massive build out of data Decarbonization Services centers
Slide 9: Siemens Xcelerator and vertical know-how drive customer value
Siemens Xcelerator and vertical know-how drive customer value Sustainability impact through decarbonization, resource efficiency & people centricity AUTOMOTIVE – INDUSTRY – MERCEDES-BENZ FOXCONN Digital Energy Factory Twin domain kno of the future Simulation model to improve al w Broad based collabo
Slide 10: Combining the real and digital worlds: Digital Business revenue
Combining the real and digital worlds New offerings for Siemens Xcelerator portfolio foster growth and customer value Digital Business revenue1 Recent highlights €bn CMD Target Digital Industries ~10% CAGR • Stringent execution of SaaS transition • Expanded Industrial Operations X 7.3 offering, e.g.
Slide 11: DI SW – Annual Recurring Revenue (ARR)
Combining the real and digital worlds Strong underlying growth momentum with SaaS transformation at high pace Therein 75% DI SW – Annual Recurring Revenue (ARR) SaaS transition with high momentum new customers €bn # Customers (accumulated): +14%1) +15%1) ~14,760 SME customers ~12,590 4.0 3.9 4.1 Clo
Slide 12: Digital Industries (DI)
Digital Industries (DI) Strong Software performance, while Automation is soft in challenging environment Orders Revenue Profit margin Free cash flow €bn €bn €m -11%1) -12%1) 5.2 -780bps -51% 5.0 4.5 4.3 1.2 17-23% 1,158 1.4 24.5% 16.7% 565 4.0 3.1 24.3% 16.5% 0.92 0.76 Q2 FY 23 Q2 FY 24 Q2 FY 23 Q2
Slide 13: Digital Industries: Key regions
Digital Industries (DI) Q2 FY 24 – Key regions Orders Revenue Automation orders Automation sequentially softer; Orders impacted by soft macro and China -20% -26% elevated distributor stock levels; however, above trough Revenue with tough comps level of Q4 FY 23 Orders normalizing, sequentially up; G
Slide 14: Digital Industries: Vertical end market trends
Digital Industries (DI) Vertical end market trends Vertical end markets Revenue Market trend1 Market trend1 Still subdued macro exposure Q1 FY 24 Q2 FY 24 environment Automotive 20% Muted growth momentum in key end Machine Building 15% markets Pharma & Chemicals 10% Food & Beverage 10% Electronics &
Slide 15: Smart Infrastructure (SI)
Smart Infrastructure (SI) Consistent topline momentum, record operational profitability, strong free cash flow Orders Revenue Profit margin Free cash flow €bn €bn €m +10%1) 6.1 +6%1) +70bps -3% 5.5 11-16% 4.9 5.1 796 770 16.8% 1.0 1.1 16.1% 16.6% 3.9 4.0 15.9% 1.02 0.90 Q2 FY 23 Q2 FY 24 Q2 FY 23 Q2
Slide 16: Smart Infrastructure: Key regions
Smart Infrastructure (SI) Q2 FY 24 – Key regions Orders Revenue Order growth driven Order strength on large data center wins; by large customer wins U.S. +38% +12% Strong backlog execution, Electrification for data centers & Electrical Products driving revenue up Orders softer across businesses; Ger
Slide 17: Smart Infrastructure: Vertical end market trends
Smart Infrastructure (SI) Vertical end market trends Vertical end markets Revenue Market trend1 Market trend1 Key verticals with exposure Q1 FY 24 Q2 FY 24 consistent market trends Commercial Buildings 20% Data Center a growth Public Sector / Education 10% engine boosted by AI; Power Distribution 10
Slide 18: Mobility (MO)
Mobility (MO) Solid topline and profit performance, sharp free cash flow improvement Orders Revenue Profit margin Free cash flow €bn €bn €m -49%1) +>100% 6.2 -80bps 10 - 13% +6% 1) 331 3.2 2.7 2.8 8.6% 0.5 9.6% 1.40 0.4 9.2% 0.01 2.2 2.3 8.4% 2 Q2 FY 23 Q2 FY 24 Q2 FY 23 Q2 FY 24 Q2 FY 23 Q2 FY 24 Q
Slide 19: Below Industrial Business
Below Industrial Business Solid operational performance, lower tax rate Q2 FY 24 Key developments €m • SFS: Consistently solid performance 149 89 2,513 • Portfolio Companies: -269 162 2,196 Robust profitability as expected; -188 2,034 starting from Q3, Innomotics will be -260 reported in D/O retrosp
Slide 20: Solid free cash flow supported by all businesses
Solid free cash flow supported by all businesses FCF Industrial Business Q2 cash performance €bn +10% 3.4 • Industrial Business lower due to profit decline at 3.1 0.59 0.65 Digital Industries 2.1 Q2 2.7 • Build up of operating net working capital at Q1 1.3 0.4 Siemens Healthineers H1 FY 23 H1 FY 24
Slide 21: Outlook FY 2024 on Group level confirmed
Outlook FY 2024 on Group level confirmed Siemens Siemens Revenue growth Profit margin Group Businesses Comparable Book-to-bill >1 Digital -8% – -4% 18% – 21% Industries [prior 0% – 3%] [prior 20% – 23%] Revenue growth 4% – 8% Smart 8% – 10% 16% – 17% Comparable Infrastructure [prior 7% – 10%] [prior
Slide 22: Questions and Answers
Questions and Answers Page 22 Unrestricted | © Siemens 2024 | Investor Relations | Q2 Analyst Call | 2024-05-16
Slide 23: Appendix
Appendix Page 23 Unrestricted | © Siemens 2024 | Investor Relations | Q2 Analyst Call | 2024-05-16
Slide 24: Siemens AG has decided to sell Innomotics to KPS Capital Partners for €3.5bn
Shaping the future of Innomotics, a leading motors and large drives company Siemens AG has decided to sell Innomotics to KPS Capital Partners for €3.5bn Key transaction facts • Buyer: KPS Capital Partners ➢ Very experienced financial investor with > US$21bn AuM Market Revenue (FY 23) Adj. EBITDA ➢ S
Slide 25: Order backlog on record level
Order backlog on record level Growth aspirations well underpinned for Siemens Expected revenue generation from backlog Key developments €bn • Short-cycle product businesses in DI further 114 29 normalized, Software backlog now exceeding DI 10 5 9 Automation SI 18 6 7 • Continued rise of backlog in s
Slide 26: Financial Services: Strong H1 performance driven by an equity sale
Financial Services: Strong H1 performance driven by an equity sale as planned in Q1 provides a solid base for FY24 Key figures SFS total Therein: Debt Business Equity Business Return on Equity (after tax) 17.3% 23.8% 12.5% 12.8% 42.9% 71.4% Earnings before 409 taxes (€m) 303 203 210 202 102 Total as
Slide 27: Below Industrial Business - Outlook
Below Industrial Business - Outlook Starting from Q3 FY 24 Innomotics will be reported as Discontinued Operations H1 FY 24 Expectation for FY 2024 Profit Industrial Business 5,236 SFS 409 Further gradual improvement over FY 2023 POC 167 Operational margin >5%, FY 23 included gain on sale of CV (€148
Slide 28: Net Debt bridge
Net Debt bridge Capital Structure remains rock solid Ind. Net Debt/ EBITDA (c/o) €bn Operating Activities therein: 1.1x • CAPEX -0.5 (Q1 FY24: 0.7x) • SFS -0.5 36.6 41.0 14.2 therein: therein: • ∆ Inventories -0.2 • Dividends paid -3.7 • Share buyback -0.2 26.8 • ∆ Trade and other receivables +0.1 •
Slide 29: Capital structure on strong level
Capital structure on strong level Continuing robust cash performance, dividend payment Capital structure Financial strength Industrial net debt/ EBITDA (c/o) • Consistent cash generation with stable development over prior year H1 • Excellent financial position recognized with rating Target upgrade b
Slide 30: Siemens with sound refinancing profile
Siemens with sound refinancing profile Total loan and bond debt of around €46bn1) Loan and bond maturity profile as of March 28, 2024 in EUR bn 6.7 5.4 4.8 3.7 2.9 3.0 2.3 2.0 1.5 1.5 1.6 1.3 1.4 1.4 1.0 1.0 0.9 0.8 0.8 0.8 0.8 FY2033 0.5 FY2036 FY2037 FY2043 FY2044 FY 2024 FY 2025 FY 2026 FY 2027 F
Slide 31: Provisions for pensions remain stable at historic low level
Provisions for pensions remain stable at historic low level Q FY 2020 – Pensions and similar obligations Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY in €bn¹ FY 2021 FY 2022 2023 2023 2023 2023 2024 2024 Defined benefit obligation (DBO)² -35.5 -27.8 -27.2 -27.3 -28.1 -26.6 -28.8 -28.3 Fair value of plan asse
Slide 32: Profit Bridge from SHS disclosure to SAG disclosure
Profit Bridge from SHS disclosure to SAG disclosure Different profit definitions at SHS and SAG to be considered in models €m Q2 FY 24 H1 FY 24 SHS EBIT (adjusted) 822 15.1% 1,564 14.7% PPA (SHS logic)1 -95 -191 Transaction, integration, retention, carve-out cost -6 -11 Gains and losses from divestm
Slide 33: Outlook FY 2024 as presented by Siemens Healthineers on May 7, 2024
Outlook FY 2024 as presented by Siemens Healthineers on May 7, 2024 Page 33 Unrestricted | © Siemens 2024 | Investor Relations | Q2 Analyst Call | 2024-05-16
Slide 34: Financial calendar and Investor Relations Contacts
Financial calendar May 16, 2024 May 17, 2024 May 28/29, 2024 June 4, 2024 June 5, 2024 June 13, 2024 June 20, 2024 August 8, 2024 Q2 Earnings Roadshow Roadshow BNP Exane Roadshow JP Morgan Roadshow Q3 Earnings Release London New York, Conference Frankfurt Conference Munich; Release (virtual) Boston