Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Q3 2021 Earnings Presentation
28 slides from Siemens Aktiengesellschaft's earnings presentation, Aug 5, 2021
Slide 1: Excellent results – guidance raised again
Excellent results – guidance raised again Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2021 | Investor Relations | Q3 Analyst Call | 2021-08-05
Slide 2: Notes and forward-looking statements
Notes and forward-looking statements This document contains statements related to our future business and incorrect, actual results, performance or achievements of Siemens financial performance and future events or developments involving may (negatively or positively) vary materially from those desc
Slide 3: Favorable macro environment with some noticeable challenges
Favorable macro environment with some noticeable challenges Industrial production, Index: Dec 2019 = 100 • Strong secular growth trends Automation, Industrial production, Index: Dec 2019 = 100 Digitalization and Decarbonization 120 +55% • Stimulus programs to upgrade infrastructure and 115 improve s
Slide 4: Siemens is accelerating high value growth
Siemens is accelerating high value growth • Close collaboration with suppliers to safeguard • Innovative portfolio proves its strength in all stable supply chains regions • Fully loaded factories to match customer demand; • Targeted bolt on acquisitions to strengthen software extended delivery times
Slide 5: Portfolio strengthened – more digital and in attractive markets
Portfolio strengthened – more digital and in attractive markets • Leading Design-to-Source platform for global electronics • Strong SaaS-business with growth rates of >40% proFPGA • Closed August 2021 product line • Strong operational performance + • • Integration well on track Focus on delivering s
Slide 6: Sqills – Complementing Mobility's software portfolio
Sqills – Complementing Mobility’s software portfolio for our customers’ core processes and enabling MaaS offerings • Digital and connected intermodal platform for planning, ticketing and capacity management for public transport operators (B2B) • Key offering to enable operators to optimize yield man
Slide 7: Transforming rail travel in the United States
Transforming rail travel in the United States Mobility awarded historic $3.4bn in contracts from Amtrak • Transform mobility in the U. S. through modernizing rail travel • Preserve Northeast Regional and State supported services for the future by replacing the aging 40 – 50 year old fleet • Use stat
Slide 8: Accelerating sustainability approach
Accelerating sustainability approach Execution of DEGREE action fields Siemens Real Estate Decarbonization Sustainability guidebook targeting NetZeroCarbon for all new Employability Ethics construction projects Siemens Integrity Initiative Funding of up to $20.5m for eight additional projects commit
Slide 9: Sustainability as business
Sustainability as business • First of its kind hybrid battery Venture trains • Swedish water company VA SYD to reduce 10% • Predictive maintenance & real-time digital non-revenue water monitoring • AI based leakage detection system • Reducing emissions by up to 70% compared • Improved energy-efficie
Slide 10: Excellent results across all metrics
Excellent results across all metrics €20.5bn €16.1bn 15.3% +44% +21% +100bps1 €1.68 €2.3bn 1.9x Note: Orders and Revenue growth comparable 1 Excl. revaluation of Bentley stake: +260bps Page 10 Unrestricted | © Siemens 2021 | Investor Relations | Q3 Analyst Call | 2021-08-05
Slide 11: Digital Industries: Accelerating growth momentum and excellent performance
Digital Industries (DI) Accelerating growth momentum and excellent performance Orders €bn Dynamic growth in key end markets, extended delivery +36%1) +17%1) times 4.7 4.2 3.6 3.7 Strength in short-cycle automation 1.1 1.0 Revenue 2.6 3.2 Broad based growth across all businesses Q3 FY 20 Q3 FY 21 Q3
Slide 12: Digital Industries: Key drivers by region and industry
Digital Industries (DI) Key drivers: China continuing growth momentum and Europe strongly rebounding Market trend1) As of Q2/21 As of Q3/21 Orders +56% | Revenue +27% 20% Automotive Continuing strength compared to PY and Q-o-Q Orders +65% | Revenue +15% 15% Machine Building Rebound from COVID-19 tro
Slide 13: Smart Infrastructure: Convincing top-line and performance improvement
Smart Infrastructure (SI) Convincing top-line and clear performance improvement trajectory €bn Products sharply up +24%1) +15%1) Systems substantially up 4.1 Solutions and services with clear growth supported by 3.4 3.4 3.8 1.5 several large orders 1.2 2.2 2.3 Products show strength, substantially u
Slide 14: Smart Infrastructure: Markets constantly improving
Smart Infrastructure (SI) Markets constantly improving – still some headwinds from non-residential construction 26% 44% Electrification Buildings Orders +19% | Revenue +4% Products growth outstanding Portfolio Orders +29% | Revenue +8% mix1 Growth in Systems and Products Orders +30% | Revenue +20% S
Slide 15: Mobility: Outstanding order intake, strong performance
Mobility (MO) Outstanding order intake, strong performance as expected Orders €bn +74%1) Amtrak contract 5.1 Acceleration of large orders as expected +5%1) 3.0 2.3 2.2 Revenue 0.3 0.3 1.8 1.9 Significant growth in Rail Infrastructure Customer Service business moderately up Q3 FY 20 Q3 FY 21 Q3 FY 20
Slide 16: Below Industrial Businesses: Siemens Energy setback overcompensated
Below Industrial Businesses Siemens Energy setback overcompensated by various other items €m • SFS: significant improvement over FY 2020, however, not at pre-COVID-19 levels yet 120 -16 -139 • POC: positive contribution from fully owned businesses; 2,319 19 -226 overcompensated by negative result fr
Slide 17: Free cash flow
Free cash flow Well on track for an excellent and steady cash performance Excellent cash generation on higher profit and stringent €m +51% operating working capital management 6,032 3,998 1.03 1.04 0.69 0.92 DI, SI and Healthineers with cash conversion clearly 2,144 2,420 0.81 1,468 above 1 despite
Slide 18: Outlook FY 2021 raised again
Outlook FY 2021 raised again • Book-to-bill >1 • Comparable revenue growth Comparable Adj. EBITA margin of 11 – 12% [previous 9 – 11%] revenue growth expectation • Net income of €6.1 – 6.4bn [previous €5.7 – 6.2bn] Digital Industries 10 – 12% 20 – 21% [previous 9 – 11%] €bn 6.4 Smart Infrastructure
Slide 19: Appendix
Appendix Page 19 Unrestricted | © Siemens 2021 | Investor Relations | Q3 Analyst Call | 2021-08-05
Slide 20: Siemens Financial Services (SFS)
Siemens Financial Services (SFS) Constantly delivering to significantly improve compared to FY 2020 RoE: Continuing recovery of SFS profitability, but below €m therein Equity Business 15.1% 16.0% outstanding results of prior quarter 393 341 Slightly higher expenses for credit risk provisions 156 com
Slide 21: Net debt bridge Q3 FY 2021
Net debt bridge Q3 FY 2021 Ind. Net Debt/ EBITDA (c/o) in €bn Operating Activities 1.9x (Q2 FY21: 0.6x) therein: therein: 26.4 • ∆ Inventories -0.3 • Varian (purchase price of 13.9, 38.4 15.9 • ∆ Trade and other receivables -0.6 incl. net of cash acquired 0.6) -13.4 • ∆ Trade payables +0.6 • SFS inv
Slide 22: Provisions for pensions further improved in Q3
Provisions for pensions further improved in Q3, mainly due to positive asset performance Q FY 2020 – Pensions and similar obligations FY FY Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY in €bn¹ 2018 2019 2020 2020 2020 2020 2021 2021 2021 Defined benefit obligation (DBO)² -35.9 -40.3 -39.2 -33.4 -35.7 -
Slide 23: Q3 FY 2021 Profit Bridge from SHS disclosure to SAG disclosure
Q3 FY 2021 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 July 30, 2021) disclosure (as of August 5, 2021) Therein expenses totaling €0.1bn related to the Varian transaction (transaction- related cost
Slide 24: Q3 FY 2021 (YTD) Profit Bridge from SHS disclosure to SAG disclosure
Q3 FY 2021 (YTD) 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 July 30, 2021) disclosure (as of August 5, 2021) 18.3% 16.8% 17.2% 2,349 15.2% -109 2,161 2,210 -49 3 13 49 -241 1,951 195 EBIT Transact
Slide 25: Siemens Healthineers Outlook 2021 raised
Outlook FY 2021 as presented by Siemens Healthineers on July 30, 2021 Outlook 2021 raised – increased rapid antigen assumption, stronger Imaging growth, higher Varian contribution Comparable revenue growth 1,3 Adj. basic EPS2,3 (€) Adj. EPS growth ex-FX: ~24% to ~34% ~28% to ~34% 17% to 19% 1.90 to
Slide 26: Varian with a strong start; Integration well on track
Update on Varian business as presented by Siemens Healthineers on July 30, 2021 Varian with a strong start; Integration well on track Recovery in full swing Strong financial performance (€m) On track to deliver synergy targets EBIT synergies in €m Organic revenue growth y-o-y1 Adjusted Adj. EBIT Rev
Slide 27: Financial calendar H2 CY 2021
Financial calendar H2 CY 2021 September 9, From November 12, Morgan Stanley Q4 Roadshow Conference August 5, November 11, Q3 Earnings Q4 Earnings Release Release Page 27 Unrestricted | © Siemens 2021 | Investor Relations | Q3 Analyst Call | 2021-08-05
Slide 28: Investor Relations
Investor Relations Internet: www.siemens.com/investorrelations E-Mail: investorrelations@siemens.com Telephone: +49 89 636-32474 Fax: +49 89 636-1332474 Page 28 Unrestricted | © Siemens 2021 | Investor Relations | Q3 Analyst Call | 2021-08-05
Siemens Aktiengesellschaft — Q3 2021 Earnings Presentation on 6ix