Siemens Healthineers Ag · XETR:SHL

Siemens Healthineers — Q4 2020 Earnings Presentation

34 slides from Siemens Healthineers's earnings presentation, Nov 2, 2020

  1. Slide 1: Q4 Analyst Call

    Q4 Analyst Call Siemens Healthineers AG Dr. Bernd Montag, CEO | Dr. Jochen Schmitz, CFO Nov 2, 2020 Q4 FY2020 Unrestricted © Siemens Healthineers AG, 2020 l 1 Frei verwendbar

  2. 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

  3. Slide 3: FY2020 – resilient performance in unprecedented times

    FY2020 – resilient performance in unprecedented times Key achievements in FY2020 Guidance achieved Comparable revenue growth1 • Our team successfully masters the challenges of the pandemic: from outstanding service to securing supply chain, to rapidly innovating tests Broadly flat revenue -0.2% grow

  4. Slide 4: Four important pillars support resilient revenue performance

    Four important pillars support resilient revenue performance Regional – diversification as stabilizing factor Value Partnerships – significant contribution in 2020 • Business in Europe and China grew mid-single digit • Significantly increased order backlog from Value in FY20 counterbalancing tempora

  5. Slide 5: Agenda

    Agenda 1 2 Q4 FY2020 results Upgrading – The next level Q4 FY2020 Unrestricted © Siemens Healthineers AG, 2020 l 5

  6. Slide 6: Q4 with record order intake and cash flow generation

    Q4 with record order intake and cash flow generation • Q4 with highest equipment book-to-bill in FY at 1.15, full FY at 1.06 • Q4 comparable1 revenue moderately down by -2.0% on tough comps (PYQ: +8%) • Imaging growth1 recovering in Q4 from Q3 with -1.7% revenue decline, Advanced Therapies down in Q

  7. Slide 7: Strongest revenue quarter of the fiscal year despite the pandemic

    Strongest revenue quarter of the fiscal year despite the pandemic; moderate decline on very tough comps Revenue (€m) Adjusted basic earnings per share (€) Net Income 507 432 Comparable (€m) -2.0% Growth1 Y-o-Y -11% 4,142 3,876 0.54 0.48 Q4 FY2019 Q4 FY2020 Q4 FY2019 Q4 FY2020 • Strongest revenue qua

  8. Slide 8: Imaging with record Q4 margin, Diagnostics margin under pressure

    Imaging with record Q4 margin, Diagnostics margin under pressure Imaging (€m) Diagnostics (€m) Advanced Therapies (€m) Comparable -1.7% -1.0% -6.4% Growth1 Revenue 2,595 2,447 1,108 1,038 481 432 Q4 FY2019 Q4 FY2020 Q4 FY2019 Q4 FY2020 Q4 FY2019 Q4 FY2020 Margin Y-o-Y +60 bps -890 bps -320 bps Adj.

  9. Slide 9: Anticipated margin decline impacted by COVID-19 pandemic

    Anticipated margin decline impacted by COVID-19 pandemic Diagnostics: Adjusted EBIT margin 9.1% 1.8% FY19 Volume COVID-19 Atellica FX / Portfolio FY20 FY21 related "investments" & Other impact • Volume: Margin dilution from decline in routine care testing only partially offset by COVID related testi

  10. Slide 10: Largest cash intake in FY20 further bolsters healthy financial framework

    Largest cash intake in FY20 further bolsters healthy financial framework Y-o-y cash flow (€m) Profit to cash (€m) CCR1 0.67 0.95 CCR1 0.95 Y-o-Y +23% 2,796 1,883 815 -149 1,531 1,982 93 1,883 -858 Free Cash Flow pre-tax1 Q1 - Q4 FY2019 Q1 - Q4 FY20202 Healthineers Amort. EBITDA Change Add. to Other

  11. Slide 11: We are well on track to complete a transformative acquisition

    We are well on track to complete a transformative acquisition Achieved milestones Financing ✓ Varian stockholders overwhelmingly approved merger ✓ Successful share placement on Sep 2, with the largest ABB agreement on Oct 15 by a German corporate ✓ U.S. antitrust approval obtained on Oct 22 ✓ Well-p

  12. Slide 12: Testing and examination volumes further stabilizing despite COVID-19 volatility

    Testing and examination volumes are further stabilizing despite volatility in COVID-19 incidence Central lab test volumes1 Magnetic resonance exams2 China China Typical Typical COVID-19 cases test level exam level COVID-19 cases # of tests # of exams 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Jan F

  13. Slide 13: Outlook for FY2021 (ex Varian)

    Outlook for FY2021 (ex Varian) Comparable revenue growth1,3 Adj. basic EPS2,3 (€) Comp.4 adj. EPS growth: +10 to +18% 5 - 8% 1.61 1.58 to 1.72 0% 2020 2021E 2020 2021E • Growth in FY21 subject to both recovery and opportunities • Adj. EBIT margin2 for the group to improve >100 bps y-o-y • Imaging re

  14. Slide 14: Agenda

    Agenda 1 2 Q4 FY2020 results Upgrading – The next level Q4 FY2020 Unrestricted © Siemens Healthineers AG, 2020 l 14

  15. Slide 15: We execute on our strategic priorities

    We execute on our strategic priorities Mid-term and as of Capital Market Day, beyond January 2018 Mid-term New growth 2017-19 Upgrading Reinforcing Strategic Drive profitable growth Tap into adjacent "Market leadership 2025" posture in core business growth markets Strategic Precision Therapy of medi

  16. Slide 16: Healthcare trends unchanged… and with them our growth drivers

    Healthcare trends unchanged… …and with them our growth drivers Healthcare trends Procedure growth Transforming providers Demographic shift +8% in lung cancer1 Managing health Population growth Staff shortage Increase in chronic diseases +20% in stroke1 Increasing cost pressure Growing access in emer

  17. Slide 17: Innovation engine runs at full speed – despite the pandemic

    Innovation engine runs at full speed – despite the pandemic Imaging Diagnostics Advanced Therapies Digital Workflow Procedures Continuously innovating and making Path to market growth and expanding Transforming to new levels of new markets workflow leadership profitable growth • Breaking barriers in

  18. Slide 18: Value Partnerships: Capitalizing on depth and breadth of our portfolio

    Value Partnerships: Capitalizing on the depth and breadth of our portfolio and unique C-level access • ~€1 bn order intake from Value Partnerships Significant increase in Value Partnerships in FY2020 to ~€1 bn • Creating high visibility of revenues over multiple years • AI, digitalization and consul

  19. Slide 19: Underlying ambition unchanged

    Underlying ambition unchanged Comparable revenue growth Adj. EPS growth >5% p.a. ~10% p.a. Q4 FY2020 Unrestricted © Siemens Healthineers AG, 2020 l 19

  20. Slide 20: Acquisition of Varian is the logical step in upgrading to the next level

    Acquisition of Varian is the logical step in upgrading to the next level: one step – two leaps A leap in cancer care A leap in impact ▪ Most comprehensive portfolio along the complete ▪ Moving our value partnership approach to the next level cancer pathway ▪ Holistic partner for the entire customer

  21. Slide 21: Q4 FY2020 Unrestricted © Siemens Healthineers AG, 2020 l 21

    Q4 FY2020 Unrestricted © Siemens Healthineers AG, 2020 l 21

  22. Slide 22: Appendix

    Appendix Q4 FY2020 Unrestricted © Siemens Healthineers AG, 2020 l 22

  23. Slide 23: Cash Conversion Rate in Q4 FY2020 significantly above 1

    Cash Conversion Rate in Q4 FY2020 significantly above 1 Q4 Siemens Healthineers EBIT to Free Cash Flow (€m) Imaging 1.3 CCR1 Diagnostics <1 Adv. Therapies 1.3 CCR1 1.46 994 -89 25 214 -176 818 776 68 -110 708 215 560 Healthineers Amortization, EBITDA Change in Change in Add. to Other Operating Add.

  24. Slide 24: Q4 FY2020 reconciliations and KPIs for group and segments

    Q4 FY2020 reconciliations and KPIs for group and segments Q4 FY2020 Q4 FY2019 Advanced Advanced Healthineers Imaging Diagnostics Healthineers Imaging Diagnostics Position (€m) Therapies Therapies Adjusted EBIT 626 549 7 80 783 565 106 105 therein adjusted for: Amortization of intangible -39 - - - -3

  25. Slide 25: FY2020 reconciliations and KPIs for group and segments

    FY2020 reconciliations and KPIs for group and segments FY2020 FY2019 Advanced Advanced Healthineers Imaging Diagnostics Healthineers Imaging Diagnostics Position (€m) Therapies Therapies Adjusted EBIT 2,230 1,909 72 298 2,488 1,831 375 317 therein adjusted for: Amortization of intangible -168 - - -

  26. Slide 26: Q4 & FY adj. EBIT to net income and adj. basic EPS reconciliation

    Q4 & FY adj. EBIT to net income and adj. basic EPS reconciliation Position (€m) Q4 FY2020 Q4 FY2019 FY2020 FY2019 Adjusted EBIT 626 783 2,230 2,488 therein adjusted for: Amortization of intangibles assets acquired in business combinations -39 -33 -168 -131 therein adjusted for: Severance charges -22

  27. Slide 27: Q4 balance sheet and net debt bridge

    Q4 balance sheet and net debt bridge Net debt overview Capital structure development in Q4 (in €bn) in €bn Sep 30, 2019 Sep 30, 2020 Leverage1 1.5x 0.9x 4.4 Cash and cash equivalents 0.9 0.7 Receivables from Siemens Group Pensions 1.0 0.7 3.3 (financial cash) Short-term and long-term debt (0.1) (0.5

  28. Slide 28: Siemens Healthineers loan maturity profile

    Siemens Healthineers loan maturity profile Siemens Healthineers loans with Siemens Group as of 30.09.20201 (€m) Comments 1,859 ▪ Total loan volume ~€5 bn equivalent Other 88 ▪ Average interest rate ~0.7%3 EUR ▪ All maturities exceeding FY 2020 USD 1,5142 1,000 Top 5 loans 845 Volume Interest Currenc

  29. Slide 29: Funded status unchanged

    Funded status unchanged Q4 FY2020 Key financials – Pensions and similar obligations Q1 Q2 Q3 Q4 in €bn1 FY2017 FY2018 FY2019 FY2020 FY2020 FY2020 FY2020 Defined benefit obligation (DBO)2 (4.1) (3.4) (3.8) (3.7) (3.6) (3.8) (3.8) Fair value of plan assets2 2.4 2.6 2.8 2.8 2.6 2.8 2.8 Provisions for p

  30. Slide 30: New adjusted KPI definitions starting FY2021

    New adjusted KPI definitions starting FY2021 Comparable revenue growth Adjusted EBIT margin Adjusted basic EPS Our key performance indicator (KPI) for managing and We use the adjusted EBIT (earnings before interest and taxes) As of fiscal year 2021, we will no longer use the adjusted basic monitorin

  31. Slide 31: Restatement: Adjusted EBIT margin FY2020 (new definition)

    Restatement: Adjusted EBIT margin FY2020 (new definition) Q1 Q2 Q3 Q4 FY Position (€m) 2020 2020 2020 2020 2020 Siemens Healthineers Adjusted Revenue 3,587 3,685 3,312 3,876 14,460 Adjusted EBIT 487 665 465 631 2,248 Adjusted EBIT margin 13.6% 18.0% 14.0% 16.3% 15.5% Imaging Adjusted Total Revenue 2

  32. Slide 32: Reconciliation to consolidated financial statements FY2020

    Reconciliation to consolidated financial statements FY2020 Reconciliation to consolidated financial statements Q1 Q2 Q3 Q4 FY Position (€m) 2020 2020 2020 2020 2020 Adjusted EBIT - Imaging 387 530 449 551 1,916 Adjusted EBIT - Diagnostics 32 66 -31 8 74 Adjusted EBIT - Advanced Therapies 79 81 64 83

  33. Slide 33: Restatement: Adjusted basic EPS FY2020

    Restatement: Adjusted basic EPS FY2020 Position (€) Basic earnings per share (in €) 1.41 Amortization, depreciation and other effects from IFRS 3 purchase price allocation adjustments 0.12 Acquisition-related retention costs 0.01 Acquisition-related integration costs 0.00 Acquisition-related transac

  34. Slide 34: Q4 FY2020 Unrestricted © Siemens Healthineers AG, 2020 l 34

    Q4 FY2020 Unrestricted © Siemens Healthineers AG, 2020 l 34

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