Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Q1 2022 Earnings Presentation

29 slides from Siemens Aktiengesellschaft's earnings presentation, Feb 10, 2022

  1. Slide 1: Very successful start to fiscal 2022

    Very successful start to fiscal 2022 Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2022 | Investor Relations | Q1 Analyst Call | 2022-02-10

  2. Slide 2: Notes and forward-looking statements

    Notes and forward-looking statements This document contains statements related to our future business and as pandemics, occur or should underlying expectations including financial performance and future events or developments involving future events occur at a later date or not at all or assumptions

  3. Slide 3: Very successful start to fiscal 2022

    Very successful start to fiscal 2022 Seizing market opportunities and managing impact from challenging environment • Strong demand across customer industries, excellent order momentum Secular growth trends decarbonization, • Imbalanced seller’s markets in product businesses drive pre-ordering automa

  4. Slide 4: High performance across all metrics

    High performance across all metrics Book-to-bill of 1.47 exceptional €24.2bn €16.5bn 15.7% +42% +9% €2.24 €1.1bn 1.4x Note: Orders and Revenue growth comparable Page 4 Unrestricted | © Siemens 2022 | Investor Relations | Q1 Analyst Call | 2022-02-10

  5. Slide 5: Focused technology company

    Focused technology company Continuing optimization and sharpening of portfolio • Attractive purchase price €950m • Closing expected by September 2022 • Expected pre-tax gain of €0.6bn - €0.8bn to be recorded in Mobility, immaterial tax impact • Attractive purchase price €1.15bn, expected post-tax ga

  6. Slide 6: Empowering customers

    Empowering customers Customers create sustainable future with Siemens’ offerings Accelerating development Electrifying best-selling F150 Expand of commercial aircraft with CapitalTM truck by co-developing EV charger capacities for sustainable transport electrical/electronic (E/E) software with resid

  7. Slide 7: Combining the real and digital worlds

    Combining the real and digital worlds SaaS transition progressing well according to plan €bn +11%1) • All major products cloud enabled, further investments 2.7 2.9 3.0 for cloud native SaaS applications 2.6 2.7 • Ramp up of cloud platform support structures ongoing Target: ~40% by FY 25 • Cloud ARR

  8. Slide 8: Focus on Sustainability

    Focus on Sustainability Stringent execution of DEGREE Strengthening bonds with employees Decarbonization • Ramping-up growth programs to enhance skills & engagement and foster resilience Employability Ethics • People net promoter score at strong 36, even Equity Governance improving during pandemic •

  9. Slide 9: Digital Industries (DI): Strong performance, margin benefiting from wins in Software

    Digital Industries (DI) Strong performance, margin benefiting from wins in Software €bn €m +67%1) -70bps 7.1 17-23% +11% 1) -15% 4.3 564 4.1 3.8 478 1.1 22.9% 22.0% 1.0 3.2 0.66 0.51 2.8 22.5% 21.8% Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 • Exceptional order momentum

  10. Slide 10: Digital Industries: Most verticals with healthy growth momentum

    Digital Industries (DI) Most verticals with healthy growth Automotive 20% momentum Machine Building 15% Pharma & Chemicals 10% Food & Beverage 10% Electronics & Semiconductors 10% 1 Y-o-Y industry revenue development based on industry production data from statistical office sources (e.g. NBoS, US Ae

  11. Slide 11: Digital Industries: Extraordinary order dynamics in China and Germany

    Digital Industries (DI) Extraordinary order dynamics in China +78% +15% Exceptional order growth in Discrete and Process automation across Topline momentum continued, regions and Germany +62% +14% orders exceptional businesses Extraordinary orders and strong Italy +155% +30% revenue growth on easy c

  12. Slide 12: Smart Infrastructure (SI): Strong top-line, favorable margin expansion

    Smart Infrastructure (SI) Strong top-line, favorable margin expansion trajectory continues €bn €m +26%1) +6%1) +140bps 11-16% 4.9 3.8 -52% 3.8 3.5 222 0.8 0.9 12.7% 11.4% 107 2.7 2.9 12.6% 0.57 11.2% 0.22 Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 • Electrical Products ~

  13. Slide 13: Smart Infrastructure: Broad based order strength

    Smart Infrastructure (SI) Broad based order strength China +20% +3% Revenue up on Buildings and Electrical Products Strength in Electrical Products and Electrical Products Germany +16% +5% Electrification business drives EMEA Broad based growth across all +18% +9% revenue growth excl. Germany & Midd

  14. Slide 14: Smart Infrastructure: Improved market momentum

    Smart Infrastructure (SI) Improved market momentum 44% Buildings • Electrical Products markets with strong growth 26% throughout the year – driven by exceptional customer Electrification demand • Electrification markets with solid growth – driven by renewable energy integration trend, increasing Por

  15. Slide 15: Mobility (MO): Orders at all-time high level

    Mobility (MO) Orders at all-time high level, stringent execution as expected €bn €m +94% 1) 5.4 +7%1) +220 10 - 13% 2.4 -60bps 106 2.2 0.3 0.4 0.48 10.2% 9.5% -114 2.7 1.8 2.0 9.9% 9.3% -0.52 Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 • Large orders across portfolio • St

  16. Slide 16: Below Industrial Business

    Below Industrial Business Strength in SFS and POC; burdened by Siemens Energy Investment • SFS: Excellent profit contribution €m benefiting from favorable credit 196 27 -236 Minorities environment and strong equity business 2,460 -636 €153m Therein: 1,812 -15 1,796 +€261m Other Below IB items Fluenc

  17. Slide 17: Consistent and balanced performance

    Consistent and balanced performance €m • Solid start in line with seasonal pattern as expected -2% 1,468 1,435 • Inventory build up in operating working capital • All businesses contributing to free cash flow; 0.67 0.58 Siemens Healthineers with excellent conversion of 0.92 Q1 FY 21 Q1 FY 22 €m +13%

  18. Slide 18: Further improvement and well in target range

    Further improvement and well in target range ROCE1) Target Industrial net debt/ 15 - 20% EBITDA Target 21.2% 16.4% Up to 1.5x 13.2% 14.0% 1.9x 12.4% 1.5x 1.4x 1.1x 0.6x FY 21: 15.1% Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY 22 Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY 22 • Strong start due to substa

  19. Slide 19: Outlook FY 2022 confirmed

    Outlook FY 2022 confirmed Comparable Book-to-bill >1 Profit margin revenue growth Revenue growth Mid-single Digital Industries 5 – 8% 19 – 21%1) (Comparable) digit EPS pre PPA €8.70 – €9.10 Smart Infrastructure 5 – 8% 12 – 13% [FY 2021: €8.32] Mobility 5 – 8% 10.0 – 10.5% This outlook excludes burde

  20. Slide 20: Questions and Answers

    Questions and Answers Page 20 Unrestricted | © Siemens 2022 | Investor Relations | Q1 Analyst Call | 2022-02-10

  21. Slide 21: Appendix

    Appendix Page 21 Unrestricted | © Siemens 2022 | Investor Relations | Q1 Analyst Call | 2022-02-10

  22. Slide 22: Below Industrial Business

    Below Industrial Business Strength in SFS and POC; burdened by Siemens Energy Investment €m 196 28 -64 28 -41 -105 -15 Minorities 2,460 -236 195 -636 €153m 1,812 -15 1,796 Therein: +€261m Fluence effect Tax Rate @ 26% 1,643 IB SFS POC SE SRE Innov. Net Pensions PPA Fin., Elim., Tax Inc. Cont. Disc.

  23. Slide 23: Siemens Financial Services (SFS)

    Siemens Financial Services (SFS) Favorable credit environment and high energy prices support strong profitability €m High earnings from debt business driven by a favorable FY 2021: Q1 FY 2022: credit environment RoE: 15.5% RoE: 23.3% Equity Business benefited from strong at-equity results 156 196 du

  24. Slide 24: Net debt bridge Q1 FY 2022

    Net debt bridge Q1 FY 2022 Ind. Net Debt/ EBITDA (c/o) €bn Operating Activities 1.4x (Q4 FY21: 1.5x) 37.0 therein: 36.8 13.3 therein: • ∆ Inventories -0.8 • Squills acquisition -0.5 • ∆ Trade and other receivables -0.4 • CAPEX -0.4 • ∆ Trade payables -0.3 23.5 • ∆ Contract Assets/Liabilities +1.0 2.

  25. Slide 25: Provisions for pensions remain stable in Q1

    Provisions for pensions remain stable in Q1 Q FY 2020 – Pensions and similar obligations Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY in €bn¹ FY 2019 FY 2020 2021 2021 2021 2021 2022 Defined benefit obligation (DBO)² -40.3 -35.8 -37.1 -35.6 -35.9 -35.5 -35.7 Fair value of plan assets² 31.3 30.0 32.5 32.7 33.6 33.5

  26. Slide 26: 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 Q1 FY22 SHS EBIT (adjusted) 898 17.6% PPA (SHS logic)1 -175 Transaction, Integration, Retention, carve-out cost -15 Gains and losses from divestments +1 Severance -18 SHS EBI

  27. Slide 27: Outlook FY2022 raised

    Outlook FY 2022 as presented by Siemens Healthineers on February 3, 2022 Outlook FY2022 raised Comparable revenue growth Adj. basic earnings per share 3 to 5% €2.18 to €2.30 €2.08 to €2.20 0 to 2% 2022E Old 2022E New 2022E Old 2022E New • Diagnostics with low-single digit negative growth • Diagnosti

  28. Slide 28: Siemens Financial Framework

    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 Industries Smart Infrastructure Mo

  29. Slide 29: Financial calendar and Investor Relations Contacts

    Financial calendar . February 10, 2022 March 17, 2022 May 12, 2022 Q1 Earnings Bank of America Q2 Earnings Release and AGM Conference Release Investor Relations Contacts Eva Riesenhuber Tobias Atzler Alexander Wende Head of Investor Relations tobias.atzler@siemens.com alexander.wende@siemens.com eva

Siemens Aktiengesellschaft — Q1 2022 Earnings Presentation on 6ix