Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Q3 FY2012 Earnings Presentation
20 slides from Siemens Aktiengesellschaft's earnings presentation, Jul 26, 2012
Slide 1: Q3 – Continuous revenue growth in more challenging markets
Q3 – Continuous revenue growth in more challenging markets Peter Löscher, President and CEO Joe Kaeser, CFO Q3 FY 2012, Analyst Call July 26, 2012 Copyright © Siemens AG 2012. All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on equity (after tax), or ROE (afte
Slide 3: Macro indicators point at "A rocky road ahead"
Macro indicators point at “A rocky road ahead” Purchasing Managers Index China Industry Value Added Index US ISM Eurozone Manuf. PMI 65 In % Expanding economy 60 20 55 50 49.7 15 45 Contracting economy 44.1 40 10 9.5% 35 30 5 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 (Jul)1) 99 00 01 02 03 04
Slide 4: Q3 FY 2012 – Key takeaways
Q3 FY 2012 – Key takeaways Orders substantially below prior year: Lower volume from large orders in Energy and tough comps (ICx-order) Moderate organic revenue growth driven by strength in Energy and Healthcare Strong earnings performance in Fossil and DX more than offset by higher Opex and lower co
Slide 5: Q3 FY 2012: Softer underlying Sector profit on continued revenue growth
Q3 FY 2012: Softer underlying Sector profit on continued revenue growth Siemens (continuing operations), in €m Q3 FY 11 Q3 FY 12 Change New orders 22,937 17,770 -27%1) Revenue 17,844 19,542 3%1) Book-to-bill 1.29x 0.91x Profit Total Sectors 1,1442) 1,817 59% Income (from continuing operations) 7632)
Slide 6: Strong U.S. presence drives revenue growth, while orders show global weakness
Strong U.S. presence drives revenue growth, while orders show global weakness, in particular across Europe Regional business split Main developments in Q3 Lack of large orders in Energy (US, Europe) Q3 FY12 Order growth y-o-y1) and Transportation & Logistics Europe/C.I.S./Africa/ME -38% (ICx: €3.7bn
Slide 7: Weaker profitability mainly caused by unfavorable business mix and Opex increase
Weaker profitability mainly caused by unfavorable business mix and continued Opex increase Q3 FY 12 Orders Revenue Profit y-o-y1) y-o-y1) margin Development of Divisions Siemens -27% 3% Fossil – Consistent good execution; Energy -33% 8% 9.7% strong service and product business Fossil Power -26% -2%
Slide 8: 'Transform to Win' - program addresses the recovery in Transmission
'Transform to Win' - program addresses the recovery in Transmission Transform to Win 2012 2013 2014 Objectives by 2015 New management Mastering Grid Access projects makes E T on division and business unit stronger to shape the German level "Energiewende" Cost New organizational Selective project app
Slide 9: 'Below Total Sectors' supported by a number of positive one-offs in Q3 FY 12
'Below Total Sectors' supported by a number of positive one-offs in Q3 FY 12 Q3 FY 2012 'Below Total Sectors' What to expect for Q4 FY 2012 €m Equity Investments remain volatile: 105 -11 -35 1,817 NSN some more charges expected on 22 22 the back of stronger operational -74 execution 1,229 SFS & CMPA
Slide 10: Working capital consumption drives net debt increase
Working capital consumption drives net debt increase and leaves room for more improvements €bn Operating Activities Adj. ind. ND/EBITDA 0.47x Liquidity Therein e.g. (Q2 FY12: 0.28x) Increase in inventories -0.2 Effect from billings in excess1) -1.0 Debt Therein e.g. CAPEX -0.5 Acquisition Expro (O&G
Slide 11: One Siemens goals remain in place
One Siemens goals remain in place Necessary improvements will drive value creation One Siemens - Financial Operating model Nominal growth Margins compared to industry benchmarks New orders Revenue EBITDA Margins (YTD FY12) €bn -14% (-16%)1) 7% Energy 9.8% 10-15% (+4%)1) 64.4 Healthcare 17.7% 15-20%
Slide 12: Outlook FY 2012
Outlook FY 2012 For fiscal 2012 we expect moderate organic revenue growth compared to fiscal 2011, and a book-to-bill around one. Given our results for the first nine months, including substantially lower earnings than expected in our industrial short-cycle businesses, it has become clearly more amb
Slide 13: Financial calendar
Financial calendar July July 26, 2012 Q3 earnings release and analyst call August August 1, 2012 US Roadshow (Chicago) September September 4 – 6, 2012 US Roadshow (Denver) September 24, 2012 Goldman Sachs & Berenberg German Corporate Conference (Munich) Page 13 Q3 FY 2012, Analyst Call, July 26, 201
Slide 14: Siemens investor relations contact data
Siemens investor relations contact data Mariel von Drathen +49-89-636-33780 Munich Office +49-89-636-32474 Internet: http://www.siemens.com/investorrelations Email: investorrelations@siemens.com Fax: +49-89-636-32830 Page 14 Q3 FY 2012, Analyst Call, July 26, 2012 Copyright © Siemens AG 2012. All ri
Slide 15: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) To supplement Siemens’ Consolidated Financial Statements presented in accordance with International Financial Reporting Standards, or IFRS, Siemens presents the following supplemental financial measures: • New orders and order backlog; • Adjus
Slide 16: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) New orders and order backlog - continued Order backlog represents an indicator for the future revenues of our Company resulting from already recognized new orders. Order backlog is calculated by adding the new orders of the current fiscal yea
Slide 17: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Total Sectors Profit Siemens uses Total Sectors profit to measure the sum of profit of the four Sectors Energy, Healthcare, Industry and Infrastructure & Cities. Profit of the Sectors is earnings before financing interest, certain pension co
Slide 18: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) ROCE (adjusted) – continued ROCE (adjusted) at the Siemens group level on a continuing and discontinued operations basis Siemens also presents group ROCE (adjusted) on a continuing and discontinued operations basis. For this purpose, the nume
Slide 19: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Adjusted EBITDA, adjusted EBIT and adjusted EBITDA margins on a continuing operations basis – continued Adjusted EBITDA margins at the Sector level Siemens defines adjusted EBITDA margins at the Sector level as the ratio of adjusted EBITDA to
Slide 20: Reconciliation and Definitions for Non-GAAP Measures (VI)
Reconciliation and Definitions for Non-GAAP Measures (VI) II. Limitations on the usefulness of Siemens’ supplemental financial measures The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular: • With respect to new orders and order bac