Siemens Healthineers Ag · XETR:SHL

Siemens Healthineers — Q4 2019 Earnings Presentation

24 slides from Siemens Healthineers's earnings presentation, Nov 4, 2019

  1. Slide 1: Q4 Analyst Call

    Q4 Analyst Call Dr. Bernd Montag, CEO | Dr. Jochen Schmitz, CFO November 4, 2019

  2. Slide 2: Safe Harbour Statement

    Safe Harbour Statement This presentation has been prepared solely for use at this meeting. This material is given in conjunction with an oral presentation and should not be taken out of context. By attending the meeting where this presentation is held or accessing this presentation, you agree to be

  3. Slide 3: Full year guidance largely achieved in FY19

    Full year guidance largely achieved in FY19 Comparable revenue growth1) Adj. profit margin2) Earnings per share3) (in €) 17.5 - 18.5% +20 to +30% 5.8% 4 - 5% 17.3% 1.57 (+24%) 1.56 (+24%) 2019 2019 2019 1 Y-o-y on a comparable basis; excluding translation and portfolio effects|2 Adjusted for severan

  4. Slide 4: Q4 FY19 – Highlights

    Q4 FY19 – Highlights • Comparable1) revenue up by 8.5% driven by very strong Imaging business with 10% and Advanced Therapies with 14% growth • Equipment book-to-bill of 1.1 in Q4 with strong equipment order growth in Imaging and Advanced Therapies • Diagnostics with +2% comparable1) revenue growth

  5. Slide 5: Diagnostics is a key value driver for Siemens Healthineers

    Diagnostics is a key value driver for Siemens Healthineers Sustainably growing market… … with market trends working to our favour €28bn+1) >5% Customer pain points: Customer pain points: Market size Market CAGR • Connectivity • Productivity (2018 – 2023) • Fleet management • Space efficiency • Form

  6. Slide 6: Atellica Solution is exactly addressing these needs

    Atellica Solution is exactly addressing these needs – with further innovations to follow Siemens Healthineers Atellica Solution Competitive success key strengths • Leader in workflow and automation >35% Competitive • Deep AI and technology expertise win rate • Online service network Leading in … • T

  7. Slide 7: DX topline on track to reach market growth in mid term, but delay in reaching profitability target

    DX topline on track to reach market growth in mid term, but delay in reaching profitability target Comparable revenue growth1) Challenges & Learnings Measures & Way forward mid-single digit • Key new management expertise Commercial execution • Delayered organization Overly focused on Atellica shipme

  8. Slide 8: Q4 FY2019: Outstanding topline performance with solid earnings conversion

    Q4 FY2019: Outstanding topline performance with solid earnings conversion Revenue (€m) Adj. profit2) (€m) Earnings per share3) (€m) Comparable Margin Growth1) +8.5% +90bps Net Income 374 507 Y-o-Y (€m) 4,142 3,704 19.1% Y-o-Y +36% 18.2% 791 674 0.50 0.37 Q4 FY2018 Q4 FY2019 Q4 FY2018 Q4 FY2019 Q4 FY

  9. Slide 9: Imaging and Advanced Therapies with strong top- and bottomline, Diagnostics in transition

    Imaging and Advanced Therapies with strong top- and bottomline, Diagnostics continues to be in transition Imaging (€m) Diagnostics (€m) Advanced Therapies (€m) Comparable +10% +2% +14% Growth1) Revenue 2,287 2,595 1,056 1,108 407 481 Q4 FY2018 Q4 FY2019 Q4 FY2018 Q4 FY2019 Q4 FY2018 Q4 FY2019 Margin

  10. Slide 10: Siemens Healthineers achievements since IPO

    Siemens Healthineers achievements since IPO Guidance achieved in FY18 and in FY19 largely achieved First, sizeable M&A moves following our strategy Leaner structures and 200+ m€ cost-savings Major product innovations & leadership in Digital & AI Higher growth momentum with Imaging clearly outperform

  11. Slide 11: Appendix

    Appendix Q4 FY2019 Unrestricted © Siemens Healthineers AG, 2019 l 11

  12. Slide 12: All segments with solid conversion, Diagnostics CCR > 1.0

    All segments with solid conversion, Diagnostics CCR > 1.0 despite steady investments in operating lease and CAPEX Q4 Siemens Healthineers Profit to Free Cash Flow Imaging 1.0 CCR1) Diagnostics 1.0 Adv. Therapies 0.9 CCR1) 0.96 909′ 102′ -111′ 889′ -13′ 1′ 773′ 136′ -148′ -110′ 741′ 631′ Healthineers

  13. Slide 13: Standalone cost-saving program successfully executed

    Standalone cost-saving program successfully executed Development of savings and implementation costs Comments in €m ~240 Savings • Program successfully executed ~210 ~30 therein ~50 therein with €200+ mio. savings post-IPO therein ~50 re-invest ~150 • Cost-savings from standalone setup completed ~60

  14. Slide 14: Q4 reconciliations and KPIs for group and segments

    Q4 reconciliations and KPIs for group and segments Q4 FY2019 Q4 FY2018 Advanced Advanced Healthineers Imaging Diagnostics Healthineers Imaging Diagnostics Position (€m) Therapies Therapies Profit 773 559 106 107 627 458 126 86 Severance charges 18 9 3 2 38 23 8 4 IPO costs 0 0 0 0 9 4 3 1 Adjusted p

  15. Slide 15: FY19 reconciliations and KPIs for group and segments

    FY19 reconciliations and KPIs for group and segments FY2019 FY2018 Advanced Advanced Healthineers Imaging Diagnostics Healthineers Imaging Diagnostics Position (€m) Therapies Therapies Profit 2,450 1,803 376 315 2,110 1,533 455 275 Severance charges 57 36 9 6 96 48 22 14 IPO costs 0 0 0 0 103 4 3 1

  16. Slide 16: Q4 group profit to net income and adj. EPS reconciliation

    Q4 group profit to net income and adj. EPS reconciliation Position (€m) Q4 FY2019 Q4 FY2018 FY2019 FY2018 Profit 773 627 2,450 2,110 Financial income/expenses, net in profit 8 4 19 12 Amortization of intangibles assets acquired in business combinations -33 -33 -131 -131 Interest expenses, net1) -5 -

  17. Slide 17: Q4 YTD balance sheet and net debt bridge

    Q4 YTD balance sheet and net debt bridge Net debt overview Capital structure development in Q4 YTD (in €bn) in €bn Sep. 30th 2018 Sep. 30th 2019 Leverage1) 1.5x 1.4x Cash and cash equivalents 0.5 0.9 4.0 3.6 Receivables from Siemens Group 1.4 0.7 1.0 (financial cash) Pensions 0.8 +1.1 Short-term and

  18. Slide 18: SHS loan maturity profile

    SHS loan maturity profile SHS loans with Siemens Group as of 30.09.20191 (in mio €) Comments 1,5142 ▪ Total loan volume €~4.3bn equivalent Other ▪ Average interest rate ~1.0%3 USD ▪ Majority of maturities exceeding FY 2020 870 909 Top 5 loans4 99 6672 Volume Volume Interest Currency Maturity (in mio

  19. Slide 19: Funded status unchanged

    Funded status unchanged Q4 FY2019 Key financials – Pensions and similar obligations Q1 Q2 Q3 Q4 in €bn1) FY2016 FY2017 FY2018 FY2019 FY2019 FY2019 FY2019 Defined benefit obligation (DBO)2) (4.6) (4.1) (3.4) (3.4) (3.6) (3.7) (3.8) Fair value of plan assets2) 2.4 2.4 2.6 2.5 2.7 2.7 2.8 Provisions fo

  20. Slide 20: Adjusted EBIT as new operational earnings KPI supplemented by adjusted EPS growth

    Adjusted EBIT as new operational earnings KPI supplemented by adjusted (basic) EPS growth for the group from FY 2020 onwards Today: (Adj.) Profit margin and basic EPS growth FY 2020: Adj. EBIT margin and adj. basic EPS growth Profit defined as income before income taxes, financing interest and EBIT

  21. Slide 21: Restatement: Adjusted EBIT FY18 and FY19

    Restatement: Adjusted EBIT FY18 and FY19 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Position (€m) 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 Siemens Healthineers Revenue 3,198 3,226 3,300 3,704 13,429 3,301 3,505 3,569 4,142 14,518 Adjusted EBIT 548 558 522 670 2,297 542 624 539 783 2,488 Adjusted EBIT ma

  22. Slide 22: Reconciliation to consolidated financial statements

    Reconciliation to consolidated financial statements Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Position (€m) 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 Adjusted EBIT - Imaging 378 375 342 484 1,579 402 447 417 565 1,831 Adjusted EBIT - Diagnostics 100 131 108 134 473 75 118 76 106 375 Adjusted EBIT - Adva

  23. Slide 23: Restatement: Adjusted basic EPS FY2019

    Restatement: Adjusted basic EPS FY2019 Position (€) FY2019 Basic earnings per share (in €) 1.57 Amortization of intangible assets acquired in business combinations 0.09 Severance charges 0.04 Acquisition-related transaction costs - Adjusted basic earnings per share (in €)1) 1.70 Adjusted basic earni

  24. Slide 24: Q4 FY2019 Unrestricted © Siemens Healthineers AG, 2019 l 24

    Q4 FY2019 Unrestricted © Siemens Healthineers AG, 2019 l 24

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