Siemens Healthineers Ag · XETR:SHL
Siemens Healthineers — Q4 2019 Earnings Presentation
16 slides from Siemens Healthineers's earnings presentation, Nov 4, 2019
Slide 1: The next level of profitable growth
The next level of profitable growth Dr. Bernd Montag, CEO | Dr. Jochen Schmitz, CFO November 4, 2019
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: The next level of profitable growth
The next level of profitable growth Comparable revenue growth Adj. EPS growth1) >5% p.a. ~10% p.a. 1 Adjusted for PPA, severance charges and acquisition-related transaction costs net of tax Q4 FY2019 Unrestricted © Siemens Healthineers AG, 2019 l 3
Slide 4: The global market for healthcare is undergoing a massive transformation
The global market for healthcare is undergoing a massive transformation Healthcare trends … Siemens Healthineers is uniquely • Demographic shift … and implications positioned to help Healthcare • Population growth providers to … • Growing chronic disease for providers burden • Patient as a consumer
Slide 5: We continue to outgrow our market while developing new markets and growing into adjacencies
We continue to outgrow our market while developing new markets and growing into adjacencies Total healthcare market Healthcare providers’ spend of €7 tr p.a. 50% Grow the market Leveraging our unique position 2% €50 bn1 to develop new markets and to 32% grow into adjacencies 4% Equipment Outgrow the
Slide 6: Our fingerprint gives us unique leverage
Our fingerprint gives us unique leverage Unique technology position and • 18,500+ patents IP base1) • ~600,000 installed base customer access • >750m curated clinical data sets • >70% of critical clinical decisions influenced by technologies we offer Unique clinical expertise • >90% of global top 10
Slide 7: Our priorities
We drive our company to the next level of profitable growth Imaging Diagnostics Advanced Therapies Digital Workflow Procedures Continuously innovating Path to market growth Transforming to new and and expanding workflow levels of profitable making new markets leadership growth Drive share gains in g
Slide 8: Imaging – Continuously innovating and making new markets
Imaging – Continuously innovating and making new markets Digitalization drives innovation Current market Future market Imaging continuing growth momentum at above 5% Innovate Expand Lead core business diagnostic offerings clinical decisions • New modality platforms with highly • Remotely connecting
Slide 9: Diagnostics – Path to market growth and expanding workflow leadership
Diagnostics – Path to market growth and expanding workflow leadership Strategic focus areas Roadmap for transition • Automated, high and growth Elevate throughput solutions Expand • Connected point-of-care Grow solutions • End-to-end solutions Diagnostics accelerating towards mid-single digit growth
Slide 10: Advanced Therapies – Transforming to new levels of profitable growth
Advanced Therapies – Transforming to new levels of profitable growth Expanding in procedures Current market Future market Advanced Therapies stepping up towards high-single digit growth Addressing core Improving precision Expanding in with image guidance and navigation and transforming care delivery
Slide 11: Profitable growth – Based on a sound financial framework
Profitable growth – Based on a sound financial framework Source Use Cash conversion rates R&D R&D spend Cashflow Imaging ~90% Fuel for future growth ~9% of revenue Highly cash generative Advanced Therapies ~90% core business Diagnostics in transition CAPEX CAPEX spend1) Accommodating growth 3.5 - 4.
Slide 12: Transparent M&A principles – smart, accretive, opportunistic
Transparent M&A principles – smart, accretive, opportunistic Short-term Mid-term Long-term M&A type Deal size accretion accretion accretion “Seed” Small “Adjacency” Mid “Portfolio” Large • Smart – M&A targets are selected to fit the overall strategy within the three segments • Accretive – Deals are
Slide 13: High R&D maintained, CAPEX optimized for business needs
High R&D maintained, CAPEX optimized for business needs Research and development Capital expenditures expenses (R&D) (€m) development (€m) ̴ % 9 3.5 - 4.5% of revenue of revenue Central 1,328 1,281 579 Advanced 9 - 10% 530 155 Therapies 167 6 - 8% Additions 197 Diagnostics 293 to intangibles 144 294
Slide 14: Outlook for FY2020
Outlook for FY2020 Comparable revenue growth1) Adj. EPS growth2) 5 - 6% +8 to +14%3) ex acquisitions4) 5.8% +6 to +12%3) 1.70 2019 2020E 2019 2020E • Manifesting new growth level of 5 - 6% after strong FY19 • Adj. EBIT margin2 for the group expected at 17 - 18% • Imaging to continue attractive growt
Slide 15: Outlook for FY2021 and FY2022
Outlook for FY2021 and FY2022 Comparable revenue growth1) p.a. Adj. EPS growth2) p.a. 3) >5% ~10% 2021E/2022E 2021E/2022E • Imaging continuing growth momentum at above 5% • Imaging to continuously deliver industry-leading margins • Diagnostics accelerating towards mid-single digit growth • Diagnosti
Slide 16: Q4 FY2019 Unrestricted © Siemens Healthineers AG, 2019 l 16
Q4 FY2019 Unrestricted © Siemens Healthineers AG, 2019 l 16