Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Q4 2022 Earnings Presentation
44 slides from Siemens Aktiengesellschaft's earnings presentation, Nov 17, 2022
Slide 1: Outstanding performance in fiscal 2022
Outstanding performance in fiscal 2022 Strong fourth quarter finish Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2022 | Investor Relations | Q4 Analyst Call | 2022-11-17
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: Accelerating impact through constant reinvention and innovation
Accelerating impact through constant reinvention and innovation A leading technology company built on outstanding teamwork Empower our customers to transform the backbone of our economies: Industry, infrastructure, transportation and healthcare by combining the real and digital worlds for a more sus
Slide 4: Key topics
Key topics 1 Strong finish to FY 2022 2 Strategy execution progressing well 3 Confident outlook FY 2023 Page 4 Unrestricted | © Siemens 2022 | Investor Relations | Q4 Analyst Call | 2022-11-17
Slide 5: Guidance delivered – Outstanding operational performance
Siemens Group Guidance delivered – Outstanding operational performance €bn €bn +17% +8% 89.0 71.4 72.0 62.3 1.24 FY 2021 FY 2022 FY 2021 FY 2022 €bn €bn Record €5.73 €5.47 10.3 level 8.8 8.2 8.2 €5.33 Managing successfully: Russia wind-down 15.1% Macro challenges 15.0% SaaS-transition FY 2021 FY 202
Slide 6: Siemens Businesses: Accelerated high value growth
Siemens Businesses Accelerated high value growth Digital Industries 13% 19.9% [9 – 12%] [19 – 21%] Smart Infrastructure 10% 12.8% [6 – 9%] [12 – 13%] Mobility 3% 8.2% [Flat] [7.5 – 8.5%] Note: [ ] Outlook as of Q3 FY 2022 Page 6 Unrestricted | © Siemens 2022 | Investor Relations | Q4 Analyst Call |
Slide 7: Q4 Highlights
Q4 Highlights Strong finish to fiscal 2022 – excellent starting position for fiscal 2023 • Ongoing order momentum: Book-to-bill 1.06, record high backlog of €102bn Excellent topline • Strong revenue growth: up 12%, driven by volume and price • Further gaining market share in DI Automation: Revenue u
Slide 8: Q4 Key Financials
Q4 Key Financials Excellent operational performance across all metrics €21.8bn €20.6bn 16.2% +7% +12% +220bps €3.59 €3.5bn 1.0x Note: Orders and Revenue growth comparable Page 8 Unrestricted | © Siemens 2022 | Investor Relations | Q4 Analyst Call | 2022-11-17
Slide 9: Healthy order backlog
Healthy order backlog Supply chain excellence providing confidence €bn • Stringent delivery on record order backlog to 102 45 11 normalize lead times DI 14 10 • SCM excellence built on long-term trustful SI 15 10 and reliable relationships 12 MO 36 2 • Full transparency through advanced analytics 20
Slide 10: Empowering customers through electrification, automation and digitalization
Empowering customers through electrification, automation and digitalization Accelerating sustainability impact in highly attractive growth verticals Large scale concentrating solar Collaboration on low-carbon and CBTC signaling technology & GoA4 power projects with advanced digital highly efficient
Slide 11: Focus on sustainability
Focus on sustainability DEGREE in action Global supplier collaboration days Decarbonization • Implement sustainability in the supply chain; joint action fields, Siemens offerings Employability Ethics • Three events with 400 selected key partners and suppliers Cybersecurity a key priority Equity Gove
Slide 12: Combining the real and digital worlds
Combining the real and digital worlds Siemens Digital Business with strong growth trajectory €bn SI at Light and Building • Building X – smart building ~10% CAGR software suite for net-zero buildings • Desigo CC – Integrated building management system 6.5 5.3 5.6 MO at Innotrans • Railigent X – 100%
Slide 13: Stringent strategy execution – SaaS-transition fully on track
Combining the real and digital worlds Stringent strategy execution – SaaS-transition fully on track €bn # Customers (accumulated): +14%1) ~3,100 Therein 59% new customers 3.6 ~2,350 2.9 3.0 3.1 3.3 ~1,250 74% Target: ~500 69% SME customers 15% ~40% 59% 60% 5% 6% 9% 12% by FY 25 Q1 FY 22 Q2 FY 22 Q3
Slide 14: Driving digitalization, decarbonization and resource efficiency
Driving digitalization, decarbonization and resource efficiency as a technology company Stringent capital allocation in future sustainable growth fields creating business impact R&D in % of • Drive PLM SaaS offering and strengthen EDA revenue 7.8% ~8% • Future of Industrial Operation, e. g. Edge, 5G
Slide 15: Competitiveness programs drive margin expansion across Siemens
Competitiveness programs drive margin expansion across Siemens Supporting the economic equation through continuous productivity focus Cumulative savings in million € 490 420 390 320 330 310 80 190 FY 2021 FY 2022 FY 2021 FY 2022 FY 2023e FY 2021 FY 2022 Achieved until FY 21 Achieved until FY 22 Rema
Slide 16: Technology company with continuing optimization of portfolio
Technology company with continuing optimization of portfolio Expand SW M&A Strategy in SI and MO Continue bolt-on acquisitions Strengthen technological offering Aligned with strategic imperatives Bolt ons FY 2022 FY 2023 FY 2024 POC Mail and Parcel Commercial Large Drives Sykatec Logistics Vehicles
Slide 17: Digital Industries (DI)
Digital Industries (DI) Topline finish on a high note, outstanding profit margin and free cash flow €bn €m +3%1) +18%1) +270 bps 17-23% +27% 5.2 5.7 5.7 4.5 1.3 1,337 1.2 19.1% 21.7% 1,057 3.4 4.3 1.24 1.10 18.8% 21.5% Q4 FY 21 Q4 FY 22 Q4 FY 21 Q4 FY 22 Q4 FY 21 Q4 FY 22 Q4 FY 21 Q4 FY 22 • Normali
Slide 18: Digital Industries: Growth in all vertical end markets
Digital Industries (DI) Growth in all vertical end markets, substantially driven by Automotive 20% price inflation Machine Building 15% Underlying demand Pharma & Chemicals 10% closely monitored Food & Beverage 10% Electronics & Semiconductors 10% 1 Y-o-Y industry revenue development based on indust
Slide 19: Digital Industries: Strong topline performance
Digital Industries (DI) Strong topline performance China -30% +26% Orders down on very tough comps Record-high revenue broad based Normalization of Germany +8% +13% Solid finish in Discrete and Process demand as expected Orders normalizing Italy +3% +26% Revenue strength broad-based U.S. +18% +18% P
Slide 20: Smart Infrastructure (SI)
Smart Infrastructure (SI) Excellent topline and margin improvement trajectory, record high free cash flow €bn €m +17%1) +13% 1) +170bps +51% 11-16% 5.4 5.2 1,363 4.2 4.2 1.1 0.9 901 12.8% 14.4% 3.3 4.1 14.2% 12.5% 1.72 1.85 Q4 FY 21 Q4 FY 22 Q4 FY 21 Q4 FY 22 Q4 FY 21 Q4 FY 22 Q4 FY 21 Q4 FY 22 • El
Slide 21: Smart Infrastructure: Order momentum broad based
Smart Infrastructure (SI) Order momentum Excellent order momentum across broad based U.S. +32% +24% all businesses, revenue up double- digit across the board Orders up sharply in Electrification Revenue growth Germany +19% +9% Revenue strength in EP fueled by strength Normalization of orders, revenu
Slide 22: Smart Infrastructure: Growth in all vertical end markets
Smart Infrastructure (SI) Growth in all vertical end markets, substantially driven by Commercial Buildings 20% price inflation Public Sector / Education 10% Underlying demand Power Distribution 5% closely monitored Electrical & Electronics 5% Data Center 5% 1 Y-o-Y vertical market development, major
Slide 23: Mobility (MO)
Mobility (MO) Strong revenue and cash performance, profit margin still impacted by global constraints €bn €m -8%1) +10% 1) -62% 2.8 2.6 2.5 2.7 1,246 -20bps 10 - 13% 0.4 0.4 478 9.2% 9.0% 2.1 2.3 9.0% 8.8% 5.53 2.03 Q4 FY 21 Q4 FY 22 Q4 FY 21 Q4 FY 22 Q4 FY 21 Q4 FY 22 Q4 FY 21 Q4 FY 22 • Rolling St
Slide 24: Financial Services with solid end to a challenging fiscal year 2022
Financial Services with solid end to a challenging fiscal year 2022 Resilience based on benchmark diversification and risk management SFS total Therein: Debt Business Equity Business Return on Equity 15.5% 15.6% 16.0% 7.7% Incl. -€186m 21.0% 63.0% (after tax) Russia Incl. -€186m Earnings before 512
Slide 25: Below Industrial Business
Below Industrial Business Disposal gain and several revaluation effects €m 1,163 • Portfolio Companies: Successful -306 strategy execution and operational -235 3,159 88 improvement Therein: 2,915 2,913 -€267m -953 -2 • Other Below IB-items: Finalizing Russia Therein: Russia related impact wind down,
Slide 26: Free cash flow and liquidity
Free cash flow and liquidity Excellent, consistent cash performance €bn • DI, SI and Mobility with cash conversion well 9.8 9.7 above 1 despite strong revenue growth in Q4 0.58 1.07 0.86 1.23 1.12 2.5 3.9 0.94 • Siemens Healthineers with higher receivables 1.4 1.9 due to strong Q4 revenue FY 21 Q1 F
Slide 27: ROCE and capital structure
ROCE and capital structure Strong finish provides very solid basis for future capital allocation ROCE1) Incl. 780 bps Industrial net debt/ Parcel disposal gain 24.6% EBITDA 21.2% Target 16.4% Up to 1.5x 13.2% 14.0% 12.4% 11.1% 1.9x Target 1.5x 1.6x 1.6x 1.4x 15 - 20% 1.1x 1.0x 0.6x FY 21: 15.2% FY 2
Slide 28: Stringent capital allocation for attractive shareholder returns
Stringent capital allocation for attractive shareholder returns Dividend yield of 4.2%, accelerated share buyback, 50 million treasury shares to be retired Spin-off 1 €4.25 €3.70 €3.80 €3.90 €4.00 €3.30 €3.50 €3.60 €3.50 €3.00 FY 13 FY 14 FY 15 FY 16 FY17 FY18 FY19 FY 20 FY 21 FY 22 (current program
Slide 29: Assumptions for FY 2023
Assumptions for FY 2023 • No further escalation of geopolitical tensions Business environment • Challenges from Covid-19 and supply chain constraints continue to ease OPEX • R&D intensity to increase to ~8% of revenue • Capex Ratio IB to increase above high fiscal 2022 level, reflecting selective CA
Slide 30: Below Industrial Business Outlook FY 2023
Below Industrial Business Outlook FY 2023 On FY 2022 level, ~€0.5bn EBT SFS RoE at lower end of target range 15 – 20% ~€0.3bn including value creation from Commercial Vehicle divestment POC Continued execution of full potential plans, businesses >5% margin SE Investment PPA-effects of ~-€0.1bn At eq
Slide 31: Outlook FY 2023
Outlook FY 2023 Book-to-bill >1 Comparable Profit margin revenue growth Digital Industries 10 – 13% 19 – 22% Revenue growth 6 – 9% (Comparable) Smart Infrastructure 8 –11% 13 – 14% EPS pre PPA €8.70– €9.20 Mobility 6 – 9% 8 – 10% This outlook excludes burdens from legal and regulatory matters and ma
Slide 32: Questions and Answers
Questions and Answers Page 32 Unrestricted | © Siemens 2022 | Investor Relations | Q4 Analyst Call | 2022-11-17
Slide 33: Appendix
Appendix Page 33 Unrestricted | © Siemens 2022 | Investor Relations | Q4 Analyst Call | 2022-11-17
Slide 34: Siemens Group - well balanced footprint across geographies
Siemens Group - well balanced footprint across geographies Diversified supply chain and proactively managed risk exposure Americas EMEA Asia Pacific Therein USA: Therein Germany: Therein China: Revenue €72.0bn (FY22) 29% 24% 47% 17% 25% 13% Factories ~ 180 25% 49% 26% Purchasing volume ~€35bn (FY22)
Slide 35: Below Industrial Business
Below Industrial Business Disposal gain and several revaluation effects €m 75 120 1,163 -72 -270 -34 -235 -126 3,159 88 2,915 2,913 Therein: -953 -2 Therein: -€267m Minorities €1,084m Russia related impact €212m Mail & Parcel +€0.1bn Tax Rate disposal gain Fair value @ 25% measurement of equity inve
Slide 36: Below Industrial Business: Less volatility from portfolio impact
Below Industrial Business Less volatility from portfolio impact FY 2022 Expectation for FY 2023 Profit Ind. Business 10,277 SFS 498 On FY 2022 level, RoE at lower end of target range 15 – 20% POC 1,520 ~0.3bn incl. value creation from CV divestment; continued execution of full potential plans SE Inv
Slide 37: Net debt bridge
Net debt bridge Industrial net debt further improving on strong operational free cash flow Ind. Net Debt/ therein: EBITDA (c/o) €bn Operating Activities • Brightly acquisition -1.5 1.0x • Parcel disposal +1.1 (Q3 FY22: 1.6x) • Valeo disposal +0.4 38.9 37.2 10.9 therein: • ∆ Inventories +0.2 26.3 • ∆
Slide 38: Reconciliation FY 22 EPS to EPS pre PPA
Reconciliation FY 22 EPS to EPS pre PPA €m / per share amounts in € All in Attributable to Attributable to EPS / EPS non-controlling shareholders of effect 4) interests Siemens AG Net income / EPS (all-in) 4,392 669 3,723 4.65 PPA 1) 990 108 2) 882 1.10 Tax effect 3) -220 -0.28 EPS pre PPA 5.47 Outl
Slide 39: Siemens with sound refinancing profile
Siemens with sound refinancing profile Long-term funding secured at attractive rates, bond issuance in September well received Loan and bond maturity profile as of September 30, 2022 in EUR bn 6.4 5.6 5.4 4.9 4.8 3.0 2.6 2.3 2.0 1.8 1.5 1.5 1.0 1.0 1.0 0.8 0.8 0.8 0.7 FY 2023 FY 2024 FY 2025 FY 2026
Slide 40: Provisions for pensions increased in Q4
Provisions for pensions increased in Q4 mainly due to inflation related adjustments, partially offset by positive net effects from increase in discount rates Q FY 2020 – Pensions and similar obligations FY FY Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY in €bn¹ 2019 2020 2021 2021 2021 2021 2022
Slide 41: 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 Q4 FY 22 FY 22 SHS EBIT (adjusted) 1,011 16.8% 3,655 16.8% PPA (SHS logic)1 -100 -609 Transaction, Integration, Retention, carve-out cost -15 -49 Gains and losses from divest
Slide 42: Outlook FY 2023 as presented by Siemens Healthineers
Outlook FY 2023 as presented by Siemens Healthineers on November 9, 2022 Page 42 Unrestricted | © Siemens 2022 | Investor Relations | Q4 Analyst Call | 2022-11-17
Slide 43: 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
Slide 44: Financial calendar and Investor Relations Contacts
Financial calendar November 17, 2022 November 21/22, 2022 December 12, 2022 February 9, 2023 Q4 Earnings Roadshow Sustainability Q1 Earnings Release Germany, France Update Release / AGM November 18, 2022 November 29/30, 2022 Roadshow UK Roadshow U. S. Investor Relations Contacts Eva Scherer Tobias A
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