Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Q2 2020 Earnings Presentation

26 slides from Siemens Aktiengesellschaft's earnings presentation, May 8, 2020

  1. Slide 1: Q2 – Robust performance in complicated times

    Q2 – Robust performance in complicated times Roland Busch, Deputy CEO Ralf P. Thomas, CFO Analyst Call, May 8, 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: Our agenda for today

    Our agenda for today Covid-19 impact & Executing Vision 2020+ Q2 FY 2020 Financials Unrestricted © Siemens 2020 Page 3 May 8, 2020 Q2 FY 2020 Analyst Call

  4. Slide 4: Successful crisis management – Siemens with proven track record

    Covid-19 update: Operations up and running near normal levels Successful crisis management – Siemens with proven track record Covid-19 - Where we are We take social responsibility to fight Covid-19 ▪ Priority #1: Employee health & safety ▪ Crisis proven leadership team and highly engaged employees ▪

  5. Slide 5: Covid-19 impact not yet fully visible in FY Q2

    Covid-19 impact not yet fully visible in FY Q2 Orders Revenue IB Adj. EBITA margin -9% -1% 12.1% EPS Free Cash Flow (IB) Indust. ND/EBITDA €0.80 €1.1bn 1.8x Orders and Revenue growth comparable Unrestricted © Siemens 2020 Page 5 May 8, 2020 Q2 FY 2020 Analyst Call

  6. Slide 6: Siemens Energy on track for listing end of September

    Siemens Energy on track for listing end of September March April May June July August September 2020 2020 2020 2020 2020 2020 2020 Carve-out Road- finalized show Today Portfolio set-up defined Spin-off- Extraordinary Capital Report General Meeting Market Day Brand name announced (Jul 9) (Sep 1) Acqu

  7. Slide 7: Resilient business portfolio – Ability to weather the storm

    Resilient business portfolio – Ability to weather the storm Digital Industries – €16.1bn Smart Infrastructure – €14.6bn Software 25% Solutions & Products Services 38% 35% Revenue Revenue FY 2019 FY 2019 Service 7% 63% 5% Automation Products Solutions 26% Systems & Software Mobility – €8.9bn Resilien

  8. Slide 8: Competitiveness programs accelerated

    Competitiveness programs accelerated Contingency cost measures expanded CMD 2019 View Updated View Q2 FY 20 Digital Industries Smart Infrastructure Digital Industries Smart Infrastructure Cost optimization ~ €320m ~ €300m ~ €320m ~ €300 m by FY 2023 by FY 2023 by FY 2023 by FY 2023 Operating Compani

  9. Slide 9: A leading vertically-integrated mobility player and integral part of Siemens AG

    A leading vertically-integrated mobility player and integral part of Siemens AG Siemens Mobility Key figures FY 2019: €12.9bn Orders | €8.9bn Revenue | 11% Adj. EBITA margin | 37k employees | €32bn Backlog (March 31, 2020) Rolling Stock Rail & Road Infrastructure Customer Services Turnkey Leading in

  10. Slide 10: Stringent execution of strategy – Flender spin-off planned

    Portfolio Companies: Stringent execution of strategy – Flender spin-off planned Portfolio Companies (POC) PE / Value creation approach H1 FY 20: Revenue: €2.7bn Turnaround Adj. EBITA margin: 0.4% ▪ Execute full potential Not carved out plans FY19-FY22 Siemens Energy Assets1) Turnaround ▪ Master Covi

  11. Slide 11: Digital Industries (DI) Holding up in Q2, further decline expected in Q3 FY 20

    Digital Industries (DI) Holding up in Q2, further decline expected in Q3 FY 20 Orders Revenue Orders: €bn +2%¹) Up on safety stocking & larger -10%¹) contract wins 4.1 4.2 4.1 3.7 1.0 1.0 Revenue: Short cycle significantly down 3.0 2.7 Software moderately lower Q2 FY 19 Q2 FY 20 Q2 FY 19 Q2 FY 20 Ma

  12. Slide 12: Covid-19 putting additional headwinds on challenging economic environment

    Covid-19 putting additional headwinds on challenging economic environment DI revenue share in vertical end markets Q2 FY 2020 - Key regions Automation (excl. Software) Trend next 3-4 quarters1) Orders +1% | Revenue -13% As of Q1/20 As of Q2/202) Discrete & Process Automation down 20% Automotive Limi

  13. Slide 13: Smart Infrastructure (SI) Stringent implementation of competitiveness program

    Smart Infrastructure (SI) Stringent implementation of competitiveness program Orders Revenue Orders: €bn Negative impact, mainly in -3%¹) -1%1) solutions & services 3.9 3.8 3.5 3.5 Revenue: 1.3 1.3 Product business down in 2.2 2.2 short-cycle industries Q2 FY 19 Q2 FY 20 Q2 FY 19 Q2 FY 20 Margin: Ad

  14. Slide 14: Siemens Mobility (MO) Resilient performance despite Covid-19 headwinds

    Siemens Mobility (MO) Resilient performance despite Covid-19 headwinds Orders: Orders Revenue Down on tough comps due to €bn large orders in prior year -32%¹) 3.5 +6%¹) 2.4 Revenue: 2.1 2.3 Growth on ramp up of large projects Q2 FY 19 Q2 FY 20 Q2 FY 19 Q2 FY 20 Margin: Adj. EBITA Margin Free Cash Fl

  15. Slide 15: Q2 FY 2020 - Below Industrial Businesses

    Q2 FY 2020 - Below Industrial Businesses Performance Q2 FY 2020 €m 93 -8 34 -146 1,592 -185 -65 Minorities -302 €44m therein: -€67m Pensions 1,014 -317 -€78m Corp. Items 697 Tax Rate @ 23.0% 652 IB SFS POC SRE Corp. Items, PPA Elim., Corp. Tax Inc. Cont. Disc. Ops. Net Income Pensions Treasury, Ops

  16. Slide 16: SFS with strong track record and highly diversified portfolio

    SFS with strong track record and highly diversified portfolio Key figures Consistent execution of strategy ▪ Focus on Siemens domains - combine financial and industrial expertise 653 632 IBIT 1) (in €m) 286 304 305 ▪ Well diversified portfolio with a strong regional footprint in North America and Eu

  17. Slide 17: Strong balance sheet, access to liquidity secured

    Strong balance sheet, access to liquidity secured Strong liquidity position (March 31, 2020) Liquidity actively managed in €bn 18.3 ▪ Strong credit rating: A1 (Moodys), A+ (S&P) Commercial 3.3 Cash & Paper ▪ €5bn equivalent bond issuance executed in cash 7.8 February at highly attractive terms equiv

  18. Slide 18: FY 2020: Top line guidance revised, EPS guidance suspended

    FY 2020: Top line guidance revised, EPS guidance suspended FY 2020 Siemens Group Assumptions in €bn ▪ COVID-19 pandemic began to impact financial results in FY Q2 58.5 1) ▪ Expect even stronger impacts from pandemic in FY Q3 ▪ Book-to-bill > 1 ▪ Beyond FY Q3, macroeconomic developments and influence

  19. Slide 19: Appendix

    Appendix Unrestricted © Siemens 2020 Page 19 May 8, 2020 Q2 FY 2020 Analyst Call

  20. Slide 20: DI: Covid-19 putting heavy headwinds on end markets

    DI: Covid-19 putting heavy headwinds on end markets Cost-out accelerated, contingency measures intensified Current situation Key mitigating actions ▪ Decline in key customer industries intensified in 1 Acceleration of cost optimization program March, full impact in FY Q3 expected in €m 320 320 Until

  21. Slide 21: SI: Competitiveness program accelerated

    SI: Competitiveness program accelerated Execution of Vision 2020+ on track Current situation Key mitigating actions ▪ Heterogeneous development in vertical markets 1 Competitiveness program enhanced & accelerated + Healthcare, critical infrastructure 440 – Hospitality, education 400 Until FY 23 160

  22. Slide 22: Siemens Mobility – a valid contributor to Siemens’ aspirations

    Siemens Mobility – a valid contributor to Siemens’ aspirations Mobility achievements Mobility mid-term ambition Siemens mid-term Revenue > 5% Growth ▪ Resilient market with >3% growth 4% CAGR 4 - 5% supported by megatrends over last 5 years ▪ Enhancing growth momentum: metro, digitalization, service

  23. Slide 23: Q2 FY 2020 Net debt bridge

    Q2 FY 2020 Net debt bridge Ind. Net Debt/ EBITDA (c/o) in €bn Operating Activities 1.8x (Q1 FY20: 1.1x) 27.4 34.6 15.5 therein a.o.: • Capex -0.3 19.1 • SFS -0.6 1.2 -0.2 -1.1 -7.2 Net Debt Cash flows from ∆ Working Capital Cash flows from Financing and Net Debt Net Debt Ind. Net Debt operating acti

  24. Slide 24: Provisions decreased in Q2 mainly due to increased discount rate and D/O of Siemens Energy

    Provisions decreased in Q2 mainly due to increased discount rate and D/O of Siemens Energy, partially offset by actual return on plan assets Q2 FY 2020 – Pensions and similar obligations Q1 FY D/O in €bn¹ FY 2018 FY 2019 Q2 FY 2020 2020 S’ Energy Defined benefit obligation (DBO)² -35.9 -40.3 -39.2 -

  25. Slide 25: Q2 FY20 Profit Bridge from SHS disclosure to SAG disclosure

    Q2 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 May 5, 2020) disclosure (as of May 8, 2020) 17.9% 17.1% 16.6% 659 16.3% -1 -17 629 0 -30 612 -42 600 42 17 EBIT Transaction Severance PPA effects

  26. Slide 26: Financial calendar

    Financial calendar May 8, 2020 Jul 9, 2020 Aug 6, 2020 Sep 1, 2020 Nov 12, 2020 Q2 Release Extraordinary Q3 Release CMD Siemens Q4 Release AGM Energy Jun 12, 2020 Sep 10, 2020 investorrelations@siemens.com JPM Conference MS Conference www.siemens.com/investor virtual London +49 89 636-32474 Unrestri

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