Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Commerzbank German Investment Seminar 2017
36 slides from Siemens Aktiengesellschaft's conference presentation, Jan 10, 2017
Slide 1: Siemens Vision 2020 – Focus on profitable growth
Siemens Vision 2020 – Focus on profitable growth Mariel von Schumann, Head of Governance and Markets Commerzbank German Investment Seminar | New York, January 10, 2017 Unrestricted © Siemens AG 2017 siemens.com
Slide 2: Important information about the transaction
Important information about the transaction Forward Looking-statements and other notes 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 b
Slide 3: Siemens by the numbers
Siemens by the numbers Orders Revenue Profit Industrial Business (IB) in €bn Comp. +4% in €bn Comp. +4% in €bn (nom.) (+5%) (nom.) (+5%) +13% 82.3 86.5 75.6 79.6 8.7 7.7 10.8% 11.4% B-t-B 1.09 1.09 Margin 10.8% 10.1% FY 2015 FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 Net Income EPS (“all-in”) ROCE (“al
Slide 4: Why to own Siemens shares?
Why to own Siemens shares? 1 We execute and deliver 2 We are attractively valued 3 We offer good return 4 We have a compelling strategy 5 We have a strong ownership culture Unrestricted © Siemens AG 2017 Page 4 New York, January 10, 2017 Commerzbank German Investment Seminar
Slide 5: 1. We execute and deliver
1. We execute and deliver Vision 2020 Milestones Guidance to market €1bn cost savings €1.0bn €400m FY14 FY15 FY16 FY17 FY15 FY16 More details on pg. 12/13 More details on FY 2017 pg. 14/15 More details on pg. 16 Underperforming Project charges (€bn) businesses (€14.5bn rev.) FY12 ~1.2 Profit margin
Slide 6: 2. We are attractively valued
2. We are attractively valued Multiple (EV / EBITDA) as of December 31, 2016 Average Competitor A Competitor S Competitor R Competitor G Cap Goods1) 13.7x 14.2x 13.0x 13.3x 11.6x 11.4x 10.5x 10.8x 10.6x 9.5x 9.8x 9.0x Source: Thomson Reuters Current FY Next FY 1) Average Cap Goods contains GE, ABB,
Slide 7: 3. We offer good return
3. We offer good return Continued dividend increases for three years in a row (Payout ratio: 40-60% of net income) Dividend development in € €5.401) +10% +6% +3% €3.30 €3.50 €3.602) €3.00 €3.00 €3.00 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017e Osram share Committed to share buyback pric
Slide 8: 4. We have a compelling strategy
4. We have a compelling strategy Clear Biggest strategic software imperatives business in the space Building More details on pg. 21 – 23 Creating a NEXT leading wind GENERATION Siemens – the REAL Digital Enterprise power player Healthcare • Comprehensive Wind Power + • Integrated • Unique Unrestrict
Slide 9: 5. We have a strong ownership culture
5. We have a strong ownership culture • >153,000 employees own Siemens shares • Mandatory share ownership for Top Management • Attractive share matching for employees • Compelling management incentive plan fully aligned with capital market forces • “Open” performance reviews based on WHAT and HOW in
Slide 10: Questions & Answers
Questions & Answers Confidential © Siemens AG 2016 siemens.com
Slide 11: Appendix
Appendix Unrestricted © Siemens AG 2017 Page 11 New York, January 10, 2017 Commerzbank German Investment Seminar
Slide 12: Siemens Vision 2020: seven overarching goals
Siemens Vision 2020 Clear intents for our seven overarching goals GOAL INTENT KPI Implement stringent company gover- Live lean governance and €1bn cost savings by FY 2016 achieved 1 nance with effective support functions drive continuous optimization Continued productivity of 3-5% Strengthen Sharpen
Slide 13: Siemens Vision 2020 delivers results as planned
Siemens Vision 2020 delivers results as planned Priorities for FY 2017 clearly identified Timing Execution milestones FY 2015 New and simplified organization implemented Portfolio optimization along strategic imperatives (acquisitions & divestments) FY 2016 Cost reduction target of €1bn achieved Imp
Slide 14: Guidance FY 2017
Guidance FY 2017 EPS (“all-in”) Guidance in € We continue to anticipate headwinds for macroeconomic growth and investment sentiment in our markets due to the complex geopolitical 6.80 – 7.20 environment. Therefore, we expect modest growth in revenue, net of effects from 6.74 currency translation and
Slide 15: Assumptions for FY 2017 as basis for guidance
Assumptions for FY 2017 as basis for guidance Macroeconomic environment • Continued geopolitical tension and weak global investment demand Pricing • Pricing pressure around 2.5% of revenue Personnel cost inflation • 3 – 4% increase Productivity • Mid range of 3 – 5% total cost productivity target Op
Slide 16: €1bn cost savings achieved ahead of plan
€1bn cost savings achieved ahead of plan Continuous productivity drives operational performance Cumulated savings achieved Total cost productivity of 3-5% on track Key value driver SCM Global Value Sourcing Cost & Value Engineering in €bn of production cost 27% 35% ~12 26% €1.0bn 2.3 3.4 FY 2015 FY
Slide 17: Underperforming businesses on clear improvement trajectory
Executing Vision 2020 Underperforming businesses on clear improvement trajectory Underperforming businesses (~€14.5bn revenue in FY 2016) Fiscal 2013 2014 2015 2016 2017e 2020e Year Footprint adjustments ongoing Profit Sharpened scope -4% -3% +1% +3% ~6% >8% Margin Fiscal 2017 expectations: FY 2017
Slide 18: Strengthening of portfolio continues
Executing Vision 2020 Strengthening of portfolio continues along our strategic imperatives April 16 January 16 1| Areas of growth? Closing of divestment to AtoS Closing of acquisition 2| Potential profit pool? January 16 Wind Power + 3| Why Siemens? Merger announced Closing divestment of remaining S
Slide 19: Early focus on digitalization drives value and growth
Executing Vision 2020 Early focus on digitalization drives value and growth Revenue FY 2016 Market CAGR FY17-20 Strategic direction Digitalization Siemens software Digital services Strengthen leadership Leader ~€3.3bn ~€1.0bn ~+8% by combining software, Cloud data platform: MindSphere platforms &
Slide 20: First provider of a fully integrated Digital Enterprise Suite
Siemens will be the first provider of a fully integrated Digital Enterprise Suite Acquisitions Bringing together the virtual world of product development 2007 with the real world of production automation Integrating 3D simulation and test to create the digital twin of 2012 products to predict perfor
Slide 21: Electrification – Automation – Digitalization
Electrification – Automation – Digitalization: a strong and complete offering for our customers ‒ Rail Smart Guidance ‒ Navigator based Services Design & Automation & Maintenance & engineering operation services Siemens Software Siemens Digital Services Design & Simulation Operations FlexLTP Navigat
Slide 22: MindSphere – the cloud-based, open IoT operating system
MindSphere – the cloud-based, open IoT operating system from Siemens Optimized performance of MindApps assets, energy and resource consumption, maintenance, Developed by Siemens, OEMs, services … end customers and App developers MindSphere MindSphere Various cloud infrastructures: Public, private or
Slide 23: MindSphere – Insight, Data, Action
Data-driven services based on MindSphere enable new business MindSphere – Insight The cloud-based, open IoT operating system Gain immediate insights on whole fleet as well as individual assets using own, Siemens or partner apps Virtual World Real World MindSphere Data Action 01 10 01 10 10 10 01 10
Slide 24: Merger of Siemens WP with Gamesa
Merger of Siemens WP with Gamesa: Creating a leading wind player with substantial growth potential and highly complementary strength Transaction description & rationale Key figures (pro forma, LTM Sept 2016) • Merger of the entire Siemens Wind business incl. Service with Combined Siemens WP Gamesa G
Slide 25: Siemens Healthineers: From Good – to Great – to Fascinating
Siemens Healthineers: From Good – to Great – to Fascinating Leading position in key markets and resilient performance Distinct trends at work Profit +4ppts 17.2% Transformation of Healthcare providers continues: 13.2% margin Providers today seek CAGR +2.9% (FX comp.) relevant suppliers/partners Reve
Slide 26: Strengthen our leading position by preparing listing of Healthineers
Strengthen our leading position by preparing listing of Siemens Healthineers Transformation in the … listing best suited to manage transition healthcare market continues… • Paradigm shifts visible: Transition from • Strengthen and build position in identified growth fields (i) product business to so
Slide 27: Ownership Culture and incentive system
Ownership Culture is the cornerstone for performance management and it is reflected in our incentive system Ownership culture embedded in performance management WHAT targets HOW expectations • WHAT was achieved • HOW were the results accomplished • Considers target achievements, overall results, a p
Slide 28: PG and WP divisional results
PG: Revenue growth driven mostly by Egypt, tough environment remains WP: Impressive turnaround achieved and sustainable performance delivered Power and Gas (PG) Wind Power and Renewables (WP) Orders Revenue Orders Revenue €bn €bn -38%1) +12%1) 5.3 -56%1) +11%1) 4.1 4.5 3.2 2.7 1.2 1.5 1.6 Q4 FY 15 Q
Slide 29: EM and BT divisional results
EM: Consistent improvement across all metrics BT: Strong team drives digital transformation Energy Management (EM) Building Technologies (BT) Orders Revenue Orders Revenue €bn €bn +4%1) +5%1) +7%1) +2%1) 3.3 3.4 3.5 3.6 1.7 1.8 1.7 1.7 Q4 FY 15 Q4 FY 16 Q4 FY 15 Q4 FY 16 Q4 FY 15 Q4 FY 16 Q4 FY 15 Q
Slide 30: DF and PD divisional results
DF: Industry leading top line growth drives margin expansion PD: Realignment to tackle structural challenges continues Digital Factory (DF) Process Industries and Drives (PD) Orders Revenue Orders Revenue €bn €bn +7%1) +4%1) -1%1) -6%1) 2.5 2.7 2.7 2.8 2.3 2.2 2.6 2.4 Q4 FY 15 Q4 FY 16 Q4 FY 15 Q4 F
Slide 31: MO and HC divisional results
MO: Stringent execution drives sustainable high margins HC: Continued strength in Diagnostic Imaging Mobility (MO) Healthineers (HC) Orders Revenue Orders Revenue €bn €bn +1%1) +2%1) -3%1) +8%1) 3.8 3.9 3.6 3.7 2.4 2.3 2.0 2.1 Q4 FY 15 Q4 FY 16 Q4 FY 15 Q4 FY 16 Q4 FY 15 Q4 FY 16 Q4 FY 15 Q4 FY 16 P
Slide 32: One Siemens Financial Framework
One Siemens Financial Framework Clear targets to measure success and accountability One Siemens Financial Framework Siemens Growth: Capital efficiency Capital structure Siemens > most (ROCE2)) (Industrial net debt/EBITDA) relevant competitors1) 15 – 20% up to 1.0x (Comparable revenue growth) Total c
Slide 33: Mentor Graphics will significantly increase Siemens Software revenue
Mentor Graphics will significantly increase our Siemens Software revenue Company description Transaction structure • Leading provider and pioneer of EDA • Acquisition of 100% of Mentor Graphics shares outstanding • Product portfolio for electronics design software addresses all levels from component
Slide 34: Perfect fit to expand leadership in the Digital Enterprise
Perfect fit to expand our leadership in the Digital Enterprise Vision 2020 Rationale for acquiring Mentor Graphics • Fast growing EDA segment: CAGR 7.3% until 2020 Area of growth • Unique combination of Electrical Design Automation software (EDA) and PLM accelerate growth opportunities across multip
Slide 35: Financial calendar
Financial calendar January 10, 2017 January Commerzbank German Investment Seminar (New York) February 1, 2017 Annual General Meeting and Q1 Earnings Call (Munich) February 10, 2017 February Roadshow Switzerland (Zurich) February 13, 2017 Roadshow Germany (Frankfurt) March 22, 2017 March Bank of Amer
Slide 36: Investor Relations
Siemens Investor Relations contacts Investor Relations Internet: www.siemens.com/investorrelations Email: investorrelations@siemens.com IR-Hotline: +49 89 636-32474 Fax: +49 89 636-32830 Unrestricted © Siemens AG 2017 Page 36 New York, January 10, 2017 Commerzbank German Investment Seminar