Siemens Healthineers Ag · XETR:SHL
Siemens Healthineers — Q2 2021 Earnings Presentation
20 slides from Siemens Healthineers's earnings presentation, May 3, 2021
Slide 1: Q2 Analyst Call
Q2 Analyst Call Dr. Bernd Montag, CEO | Dr. Jochen Schmitz, CFO May 3, 2021
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
Slide 3: Very strong growth momentum in Q2, Outlook raised again
Very strong growth momentum in Q2, Outlook raised again Successful closing of transformative Varian combination • Continued very strong momentum with 13% revenue growth1 • Rapid antigen test sales drive outstanding growth1 of 29% in Diagnostics • Imaging continues to be strong with 7% growth1; Advan
Slide 4: Siemens Healthineers & Varian: A leap in cancer care – A leap in impact
Siemens Healthineers & Varian A leap in cancer care – A leap in impact ~240,000 €14.5bn Patient touch Access to care ~55,000 points every hour in developing revenue1 countries for >1.4 bn ~11,000 >70 4M+ $3.2bn highly skilled countries with Patient touch people revenue1 employees direct presence poi
Slide 5: Synergies >€300m confirmed; approx. €150m cost synergies identified
Synergies >€300m confirmed; approx. €150m cost synergies identified and expected to materialize in early years Synergy ramp-up (EBIT, €m) • Initial assumptions well substantiated and all Cost synergies Revenue synergies set to generate synergies from Day 1 Integration • Leading indicators defined, d
Slide 6: Our new setup – combining focus and scale
Our new setup – combining focus and scale Imaging Diagnostics Varian Advanced Therapies Operating Revenue3 Margin4 Revenue Adj. EBIT Margin Segment Revenue Adj. EBIT Margin Revenue Adj. EBIT Margin Profit4 financials1 €9.1bn €1.9bn 21% €3.9bn €0.1bn 2% $3.2bn $0.5bn 15% €1.6bn €0.3bn 19% Recurring ~
Slide 7: Expanding the innovative portfolio for continued outperformance
Expanding the innovative portfolio for continued outperformance • Innovative product portfolio extended by the Atellica VTLi Patient-Side analyzer, industry first point-of-care high- sensitivity troponin I test to aid in diagnosing heart-attacks • Expanding our portfolio to benefit by structural gro
Slide 8: EMEA and APAC with continued strong growth; signs of market recovery in Americas
EMEA and APAC with continued strong growth; signs of market recovery in Americas Americas EMEA Asia, Australia • Slight revenue decline on the back • Significant double-digit revenue growth, • Healthy double-digit revenue growth in of temporarily postponed investment with good underlying business an
Slide 9: A compelling investment case
A compelling investment case 1 22 3 4 Attractive structural Sector leading margins Expanding portfolio Resilient performance and innovation with further upside into adjacent growth at all times driven growth markets • Leading positions in attractive, • Scope for further expansion • Varian: New level
Slide 10: Very strong revenue growth momentum continues, EPS down y-o-y
Very strong revenue growth momentum continues, EPS down y-o-y on higher share count and FX headwind Revenue (€m) Adjusted basic earnings per share (€) Y-o-Y +8% Comparable (Comp.2 adj. EPS growth) +12.9% Growth1 Y-o-Y -5% 3,685 3,965 0.46 0.44 Q2 FY2020 Q2 FY2021 Q2 FY2020 Q2 FY2021 • Continued sign
Slide 11: Core business and pandemic-related demand drive growth, mixed picture on profitability
Core business and pandemic-related demand drive growth, mixed picture on profitability Imaging (€m) Diagnostics (€m) Advanced Therapies (€m) Comparable +7.4% +29.1% +2.0% Growth1 Adjusted 2,309 2,368 1,005 1,237 421 408 revenue Q2 FY2020 Q2 FY2021 Q2 FY2020 Q2 FY2021 Q2 FY2020 Q2 FY2021 Margin Y-o-Y
Slide 12: Diagnostics core business sustains solid growth, rapid antigen self-testing opportunity
Diagnostics core business sustains solid growth, additional opportunity arising from rapid antigen self-testing DX incl. COVID-19 tests DX excl. COVID-19 tests Comparable revenue growth1 in FY21 • Momentum of rapid antigen test sales continues, ~€190m in Q2 • H1 FY21 sales better than expected with
Slide 13: Financing mix for Varian transaction leads to healthy balance sheet post-closing
Financing mix for Varian transaction leads to healthy balance sheet post-closing Cash performance (€m) Financing of transaction completed Leverage & net debt Leverage1 0.9x 0.1x ~4.2x4 +214% 2.5 ~14.43 Equity 1,027 ~35% Free Cash Net debt incl. Flow ~65% 327 pension Debt 0.3 Oct 1, Mar 31, pro forma
Slide 14: Post-closing transaction details
Post-closing transaction details ▪ Reporting as a new segment, fully transparent to capital markets Reporting & ▪ Harmonization of accounting methods, e.g. in revenue recognition Outlook ▪ H2 FY21 (Apr 15 - Sep 30) incorporated into outlook for FY21, view on FY22 and beyond at capital market day in
Slide 15: Outlook 2021 raised due to stronger operational business
Outlook 2021 raised due to stronger operational business, updated rapid antigen assumption and H2 Varian contribution Comparable revenue growth1,3 Adj. basic EPS2,3 (€) Comp.4 adj. Adj. EPS 14% to 17% EPS growth: ~16% to ~28% growth ex-FX: ~24% to ~34% 1.90 to 2.05 8% to 12% 1.63 to 1.82 2021E Old 2
Slide 16: Q2 FY2021 Unrestricted © Siemens Healthineers AG, 2021 l 16
Q2 FY2021 Unrestricted © Siemens Healthineers AG, 2021 l 16
Slide 17: Cash conversion rate >1 with contribution from OWC
Cash conversion rate >1 with contribution from OWC Q2 FY21 Siemens Healthineers EBIT to Free Cash Flow (€m) Imaging 1.1 CCR1 Diagnostics 0.6 Adv. Therapies 0.8 CCR1 1.02 797′ 808′ 41′ -60′ -65′ 31′ 174′ 633′ 595′ 623′ 94′ -144′ -31′ 27′ 359′ -305′ Healthineers PPA EBIT excl. Depr. of PPE EBITDA Chan
Slide 18: Q2 balance sheet and net debt bridge
Q2 balance sheet and net debt bridge Net debt overview Capital structure development in H1 (in €bn) in €bn Sep 30, 2020 March 31, 2021 Leverage1 0.9x 0.1x 2.5 Cash and cash equivalents 0.7 0.6 Current receivables from the Pensions 1.0 Siemens Group from financing 3.3 14.5 activities Short-term and l
Slide 19: SHS loan maturity profile
SHS loan maturity profile SHS loans with Siemens Group as of 31.03.20211 (in €m) Comments Other ▪ Total loan volume ~€13bn equivalent EUR ▪ Average interest rate ~0.5%3 USD 2,0862 Top 10 loans 1,879 108 1,730 Volume Volume Interest Currency Maturity 20 in m in €m rate 1,5142 EUR €1,000 €1,000 0.25%4
Slide 20: Funded status unchanged
Funded status unchanged Q2 FY2021 Key financials – Pensions and similar obligations Q1 Q2 in €bn1 FY2018 FY2019 FY2020 FY2021 FY2021 Defined benefit obligation (DBO) (3.4) (3.8) (3.8) (3.9) (3.8) Fair value of plan assets 2.6 2.8 2.8 2.9 2.9 Provisions for pensions and (0.8) (1.0) (1.0) (1.1) (0.9)