Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Q3 FY2010 Earnings Presentation
19 slides from Siemens Aktiengesellschaft's earnings presentation, Jul 29, 2010
Slide 1: Strong performance in an improving environment
Strong performance in an improving environment Peter Löscher, President and CEO Joe Kaeser, CFO Q3 FY 2010, Analyst Call July 29, 2010 Page 1 Q3 FY 2010, Analyst Call, July 29, 2010 Copyright © Siemens AG 2010. All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as "expects," "looks forward to", "anticipates", "intends", "plans", "believes", "seeks", "estimates",
Slide 3: Strong execution in Q3
Strong execution in Q3 Order intake strongly up in all Sectors due to excellent growth in short cycle businesses and large orders in Energy; book-to-bill at 1.09 Total Revenue stabilized y-o-y driven by strong growth in short cycle businesses and emerging markets Record high Total Sector Profi
Slide 4: Strong profitability on stabilized revenues
Strong profitability on stabilized revenues Siemens (continuing operations), in €m Q3 FY 09 Q3 FY 10 Change in % New orders 17,160 20,871 161) Revenue 18,348 19,170 01) Book-to-bill 0.94x 1.09x Profit Total Sectors 1,667 2,331 40 Net income 2) 1,317 1,435 9 Basic earnings per share 2), in € 1.45 1.6
Slide 5: Backlog further strengthened in Q3
Backlog further strengthened in Q3 Strong order backlog 1) Major order wins in Q3 €bn Industry: €60m modernization contract from Krakatau Steel (Indonesia) for slab steel works 89 14 Russian Railways (RZD) ordered 221 freight 84 6 locomotives from JV of Siemens and Sinara 7 75 29 Energy: Industr
Slide 6: Healthy profitability in an improving business environment
Healthy profitability in an improving business environment Q3 FY 10 Order growth y-o-y1) Q3 FY 10 Order Revenue Profit y-o-y1) y-o-y1) margin²) Europe/C.I.S./Africa/ME +11% Siemens 16% 0% (therein Germany) +44% Industry 27% 3% 10.3% Industry Automation 35% 19% 17.5% Americas +35% (therein USA) Drive
Slide 7: Fit42010 targets well on track
Financial Fit42010 targets well on track Profitability Cash Conversion (continuing ops.) Q3 FY 10 1 – growth rate Industry 10.3% 9 – 13% 1.49 Energy 14.3% 11 – 15% 1.04 1.00 1.04 0.87 Healthcare 1) 17.5% 14 – 17% 0.93 Total 12.7% Sectors Q3 FY 09 Q3 FY 10 YTD FY 10 Fit42010 Target margin range 1) ex
Slide 8: Favorable "Below Total Sectors" performance in Q3 FY 10
Favorable “Below Total Sectors” performance in Q3 FY 10 Q3 FY 10 ‘Below Total Sectors’ What to expect going forward €m Equity Investments to be significantly 107 2,331 113 impacted by NSN one offs 2 -16 -81 SIS carve out mostly on track incl. significant resource adjustments – restructuring char
Slide 9: Prepayments show a favourable trend
Prepayments show a favourable trend Advance payments / Billings in Excess Capex1) spending Capex / €bn Advance Depreciation payments Total Groups Total Sectors New orders & BiE 150% 127% 50 16 130% 113% 116% 115% 14 110% Target 40 96% 110% Range 12 90% 95% 10 73% 30 70% 8 50% Organic 20 order growth
Slide 10: Free Cash Flow generation significantly improved
Free Cash Flow generation significantly improved €m 4,903 4,058 3,641 1,929 2,138 697 696 519 -801 FCF – YTD 2010 -548 FCF – YTD 2009 FCF – YTD 2008 Payments of ~ €1bn for settlement with German and -1,651 US authorities Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Note: Free cash flow (FCF) cont
Slide 11: Our expectations for 2010
Our expectations for 2010 We continue to expect a mid- single-digit percentage decline in organic revenue in FY 10 due in part to the stabilizing effect of our strong order backlog Total Sectors profit will be above the prior year level of €7.466bn This increase from our earlier guidance of €6
Slide 12: Consistent execution against plan
Consistent execution against plan Reporting dates Milestones (deliverables) January 2008 New target margins for Energy and Industry Sector Q1 call and AGM Target margins for Divisions April 2008 Update on SG&A project Q2 analyst conference Start reporting in new structure July 2008 Outline
Slide 13: Financial calendar
Financial calendar July July 29 - 30, 2010 Q3 financial report and analyst call UK Roadshow (London) August Aug 3 - 6, 2010 US Roadshow (New York, Los Angeles) Aug 10, 2010 German Roadshow (Frankfurt) September Sep 16, 2010 Credit Suisse Capital Goods Conference (London) Page 13 Q3 FY 2010, Analyst
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 2010, Analyst Call, July 29, 2010 Copyright © Siemens AG 2010. 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) New orders are generally recognized immediately when the relevant contract becomes legally effective and binding. The only exception are orders with short overall contract terms. In this case, a separa
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 three Sectors Industry, Energy and Healthcare. Profit or loss for each reportable segment is the measure reviewed by the chief operating decision make
Slide 18: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) Free cash flow and cash conversion rate (continued) In addition, because Free cash flow is not impacted by portfolio activities, it is less volatile than the total of Net cash provided by (used in) operating activities and Net cash provided b
Slide 19: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Adjusted industrial net debt (continued) to maintain ready access to capital markets through various debt products and to preserve our ability to repay and service our debt obligations over time. Siemens therefore has set a capital structure g