Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Q3 2022 Earnings Presentation
39 slides from Siemens Aktiengesellschaft's earnings presentation, Aug 11, 2022
Slide 1: Strong topline momentum and solid execution – Outstanding Free cash flow
Strong topline momentum and solid execution – Outstanding Free cash flow Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG Unrestricted | © Siemens 2022 | Investor Relations | Q3 Analyst Call | 2022-08-11
Slide 2: Notes and forward-looking statements
Notes and forward-looking statements This document contains statements related to our future business and future events occur at a later date or not at all or assumptions prove financial performance and future events or developments involving incorrect, actual results, performance or achievements of
Slide 3: Focus on operational execution and driving strategic initiatives
Focus on operational execution and driving strategic initiatives Current macroeconomic challenges as potential mid-term growth drivers • Low energy / low gas intensive business Geopolitics impacting energy & gas availability • Implementation of gas contingency measures Inflation & rising interest ra
Slide 4: Siemens Group with well balanced footprint across geographies
Siemens Group with well balanced footprint across geographies Diversified supply chain and proactively managed risk exposure Americas EMEA Asia Pacific Therein GER: Revenue €51.4bn YTD 29% 47% 17% 24% Factories ~ 180 25% 49% 24% 26% ~280 GWh p.a. gas usage, thereof ~90% heating Purchasing volume ~€2
Slide 5: Q3 Key topics
Q3 Key topics Strong demand with outstanding cash generation, consistent execution on portfolio • Excellent order momentum: Book-to-bill 1.23, record high quality order backlog of €99bn • Further gaining market share in DI Automation: Revenue up +15% • SaaS-Transformation on track: ARR +13%, Cloud A
Slide 6: Solid operational performance
Solid operational performance Strong topline – cash performance again outstanding €22.0bn €17.9bn 17.0% +1% +4% -€1.85 €1.52 excl. Siemens €2.3bn 1.6x Energy impact Note: Orders and Revenue growth comparable Page 6 Unrestricted | © Siemens 2022 | Investor Relations | Q3 Analyst Call | 2022-08-11
Slide 7: Combining the real and digital worlds
Combining the real and digital worlds Siemens Digital Business with strong growth trajectory €bn • SaaS transition fully on track • Supplyframe integration and performance ahead of plan ~10% CAGR • Acquisition of SaaS business Brightly • Launch Building X 5.6 • Grid Software and GIS-leader Esri boos
Slide 8: Siemens Xcelerator – the open digital business platform
Siemens Xcelerator – the open digital business platform Taking digitalization to the next level A comprehensive, curated portfolio that includes digital and IoT-enabled offerings from Siemens and certified partners A continuously growing, powerful ecosystem of partners An evolving marketplace to exp
Slide 9: Powerful ecosystem: Siemens and NVIDIA to enable industrial metaverse
Powerful ecosystem: Siemens and NVIDIA to enable industrial metaverse Expansion of partnership to bring industrial automation to a new level • Companies of all sizes to employ digital twins with real • Siemens Process Simulation connects to NVIDIA time performance data enabling immersive simulations
Slide 10: Stringent strategy execution – SaaS transition fully on track
Combining the real and digital worlds Stringent strategy execution – SaaS transition fully on track €bn +13%1) • ~76% of customer renewals are SaaS based with more 3.3 than 80% of total contract value 3.0 3.1 2.7 • Cloud ARR increased to 12%, up 3ppt q-o-q Target: • 3x cloud revenue at PLM in Q3 com
Slide 11: Moving Egypt
Moving Egypt A modern, sustainable rail system that will transform the everyday • Strengthening economy through safe & reliable transport El Alamein infrastructure Mersa Matruh Alexandria • Developing local jobs & skills and sustaining the environment New Administrative Capital • Bringing state-of-t
Slide 12: Empowering customers and expanding the ecosystem
Empowering customers and expanding the ecosystem Sustainability at the core of our businesses focused on customer impact Holistic digital enterprise for new Strategic partnership for net-zero First order for hydrogen-based fleet supercapacitor factory, a key carbon by 2030, developing a talent of tr
Slide 13: Focus on Sustainability
Focus on Sustainability Stringent execution of DEGREE across all action fields Strong customer sustainability rating Decarbonization • Performance increased to 67 points (up 6 points over 2021) Employability Ethics • Positions Siemens among best 4% within industry peer group Driving decarbonization
Slide 14: Focused technology company with continuing optimization of portfolio
Focused technology company with continuing optimization of portfolio LDA carve out fully on track Closing (Q1) Closing (Q4) Bolt ons FY 2022 FY 2023 Mail and Parcel Commercial Large Drives Logistics Vehicles Applications IPO (Q1) Closing (Q3) Closing (Q4) Closing (Q1e) Carve out ongoing Closing (Q4)
Slide 15: Digital Industries (DI)
Digital Industries (DI) Excellent topline and fabulous free cash flow, margin impacted by mix €bn €m +32%1) -200bps 17-23% +12% 6.5 +12%1) 4.7 4.9 1,115 1,244 4.2 1.2 20.4% 18.8% 1.0 3.8 1.32 1.38 3.2 20.3% 18.3% Q3 FY 21 Q3 FY 22 Q3 FY 21 Q3 FY 22 Q3 FY 21 Q3 FY 22 Q3 FY 21 Q3 FY 22 • Excellent ord
Slide 16: Digital Industries: growth in industry revenue across all verticals
Digital Industries (DI) Growth in industry revenue across all verticals, also Automotive 20% benefitting from price inflation Machine Building 15% Pharma & Chemicals 10% Underlying demand closely monitored Food & Beverage 10% Electronics & Semiconductors 10% 1 Y-o-Y industry revenue development base
Slide 17: Digital Industries: strong topline performance despite material challenges
Digital Industries (DI) Strong topline performance despite China +32% +14% Impressive topline despite lockdown material challenges Orders and revenue up across all from China Germany +22% +11% businesses lockdowns Topline performance continued on Italy +35% +17% high level Strong demand in Process &
Slide 18: Smart Infrastructure (SI)
Smart Infrastructure (SI) Very strong Q3 performance, continuing margin expansion €bn €m +26%1) +150bps 11-16% 5.5 +10%1) 4.4 -21% 4.1 3.8 511 0.9 402 0.8 11.6% 13.1% 2.9 3.4 11.4% 12.9% 1.19 0.72 Q3 FY 21 Q3 FY 22 Q3 FY 21 Q3 FY 22 Q3 FY 21 Q3 FY 22 Q3 FY 21 Q3 FY 22 • Electrical Products 40% up •
Slide 19: Smart Infrastructure: broad based order strength
Smart Infrastructure (SI) Broad based order strength China -7% -7% Topline slowed down by pandemic and recent lockdowns Broad based order growth, Clear revenue Germany +12% +6% revenue up in Electrical Products growth again driven EMEA Orders up double-digit across all +26% +9% by Electrical excl. G
Slide 20: Smart Infrastructure: growth in all vertical end markets
Smart Infrastructure (SI) Growth in all vertical end markets, also benefitting from price Commercial Buildings 20% inflation Public Sector / Education 10% Underlying demand Power Distribution 10% closely monitored Electrical & Electronics 5% Healthcare 5% 1 Y-o-Y vertical market development, majorit
Slide 21: Mobility (MO)
Mobility (MO) Yunex gain, effects from Russia wind down and supply chain challenges €bn €m +1980bps -48%1) 5.1 +4%1) 29.0% >100% 2.5 10 - 13% 47 2.3 28.7% -240 2.8 0.4 0.3 9.2% 0.07 2.1 8.9% 1.9 -1.19 Q3 FY 21 Q3 FY 22 Q3 FY 21 Q3 FY 22 Q3 FY 21 Q3 FY 22 Q3 FY 21 Q3 FY 22 • Moderate order growth in
Slide 22: Siemens Financial Services (SFS)
Siemens Financial Services (SFS) Solid FY22 YTD performance despite material impacts due to Russia Incl. -€57m Incl. -€123m ROE: • Equity Business with outstanding result €m Russia Russia 16.1% 17.1% including material gain on sales of investments 393 410 196 138 75 • Debt Business strongly influenc
Slide 23: Below Industrial Businesses
Below Industrial Businesses Non-cash impairments on Siemens Energy Investment & leasing business in Russia €m Therein: 2,882 75 -2,855 -€442m • Siemens Energy Investment: Russia related impact; Impairment of €2.7bn and at equity loss Therein: -€125m -€123m Thoughtworks • Tax rate: Driven by non-tax-
Slide 24: Excellent and consistent performance
Excellent and consistent performance €m -4% • All businesses contributing to free cash flow; 6,032 5,811 Digital Industries outstanding with excellent cash 0.58 1.07 0.86 conversion of 1.38 0.93 1,910 2,466 0.82 1,435 9M FY 21 Q1 FY 22 Q2 FY 22 Q3 FY 22 9M FY 22 • €0.9bn in Q3 for Yunex, €1.5bn in e
Slide 25: Guidance adjusted only for Siemens Energy impairment
Guidance adjusted only for Siemens Energy impairment Strong operational performance & higher divestment gains balance Russia net income impact €8.70 - €9.10 • Portfolio gains: Additional €0.7bn, increased from €1.5bn to €2.2bn -€3.37 • Not foreseen: Russia wind down with €-1.1bn impact YTD €5.33 - €
Slide 26: Updated outlook FY 2022
Updated outlook FY 2022 Book-to-bill >1 Comparable Profit margin revenue growth Revenue growth 6 – 8% (Comparable) Digital Industries 9 – 12% 19 – 21%1) EPS pre PPA €5.33 – €5.73 Smart Infrastructure 6 – 9% 12 – 13% EPS pre PPA €8.70 – €9.10 without SE impairment Mobility Flat 7.5 – 8.5% [prior: 10.
Slide 27: Questions and Answers
Questions and Answers Page 27 Unrestricted | © Siemens 2022 | Investor Relations | Q3 Analyst Call | 2022-08-11
Slide 28: Appendix
Appendix Page 28 Unrestricted | © Siemens 2022 | Investor Relations | Q3 Analyst Call | 2022-08-11
Slide 29: Below Industrial Business
Below Industrial Business One-off non-cash headwinds mainly from SE impairment and Russia wind-down effects €m 2,882 75 5 -2,855 Therein: -€123m Therein: Russia -€442m related Russia related impact impact Minorities -€125m €66m Tax Rate Thoughtworks revaluation €+125m Divestment @ -67% gain 13 -38 -
Slide 30: Below Industrial Businesses
Below Industrial Businesses Updated outlook mainly driven by SE impairment FY 2021 9M FY 22 Expectation for FY 2022 Profit Ind. Business 8,786 7,119 SFS 512 410 Operative RoE at lower end of target range 15 – 20% POC -84 357 ~€1.4 – 1.6bn, on successful strategy execution and value creation SE Inves
Slide 31: Updated assumptions for fiscal 2022
Updated assumptions for fiscal 2022 Severance • ~€250m in FY 2022 including effects related to wind-down of Russia • ~400 – 500 bps on topline, marginal impact on profit margin expected, Foreign Exchange based on current rates • Execution of portfolio optimization strategy to contribute to net incom
Slide 32: Net debt bridge Q3 FY 2022
Net debt bridge Q3 FY 2022 Ind. Net Debt/ EBITDA (c/o) €bn Operating Activities 1.6x (Q2 FY22: 1.6x) therein: therein: • Yunex divestment +0.9 40.2 38.9 13.0 • ∆ Inventories -0.4 • CAPEX -0.5 • ∆ Trade and other receivables -0.1 • SFS investments -0.3 • ∆ Trade payables +0.2 • ∆ Contract Assets/Liab
Slide 33: Siemens with sound re-financing profile
Siemens with sound re-financing profile Long-term funding secured at attractive rates & deleveraging: €2bn debt reduction in Q3 Loan and bond maturity profile as of June 30, 2022 in EUR bn 6.1 5.3 5.4 4.1 3.8 3.0 2.5 2.0 1.8 1.7 1.4 1.4 1.0 1.0 0.8 0.8 0.8 0.8 0.0 FY2022 FY 2023 FY 2024 FY 2025 FY 2
Slide 34: SE impairment clearly visible
SE impairment clearly visible ROCE1) Industrial net debt/ Target EBITDA 15 - 20% Target 14.0% 16.4% Up to 1.5x 13.2% 21.2% 12.4% 11.1% 10.2% 1.9x 1.5x 1.6x 1.6x 1.4x Excl. 1.1x SE-impact 0.6x 1.2x FY 21: 15.2% ~-2200bps Excl. SE-impact -11.8% ~+0.4x Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q1 21 Q2
Slide 35: Provisions for pensions on new historic low
Provisions for pensions on new historic low, however some negative effects from inflation to be reflected at FY end with actuarial assessments Q FY 2020 – Pensions and similar obligations Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY in €bn¹ FY 2019 FY 2020 2021 2021 2021 2021 2022 2022 2022 Defined ben
Slide 36: Profit Bridge from SHS disclosure to SAG disclosure
Profit Bridge from SHS disclosure to SAG disclosure Different profit definitions at SHS and SAG to be considered in models €m Q3 FY 22 9M FY 22 SHS EBIT (adjusted) 765 14.7% 2,644 16.8% PPA (SHS logic)1 -148 -509 Transaction, Integration, Retention, carve-out cost -8 -33 Gains and losses from divest
Slide 37: Outlook FY 2022 as presented by Siemens Healthineers
Outlook FY 2022 as presented by Siemens Healthineers on August 3, 2022 Page 37 Unrestricted | © Siemens 2022 | Investor Relations | Q3 Analyst Call | 2022-08-11
Slide 38: Siemens Financial Framework
Siemens Financial Framework Targets over 3 – 5 year cycle 1 – comp. 5–7% comparable 15–20% revenue Cash conversion growth ROCE1 growth rate rate (all in)2 High Progressive up to single-digit dividend growth EPS pre PPA 1.5x Industrial net policy debt/EBITDA Digital Industries Smart Infrastructure Mo
Slide 39: Financial calendar and Investor Relations Contacts
Financial calendar August 11, 2022 September 7, 2022 November 8, 2022 November 17, 2022 November 21/22, 2022 Q3 Earnings Morgan Stanley JP Morgan Q4 Earnings Roadshow Release Conference Digital Twin Release Germany, France Conference November 29 – November 18, 2022 December 1, 2022 Roadshow UK Roads
Siemens Aktiengesellschaft — Q3 2022 Earnings Presentation on 6ix