Siemens Healthineers Ag · XETR:SHL

Siemens Healthineers — Q3 2019 Earnings Presentation

20 slides from Siemens Healthineers's earnings presentation, Jul 29, 2019

  1. Slide 1: Q3 Analyst Call

    Q3 Analyst Call Dr. Bernd Montag, CEO | Dr. Jochen Schmitz, CFO July 29, 2019 Q3 FY2019 Analyst Call Unrestricted © Siemens Healthineers AG, 2019 | Page 1

  2. Slide 2: Notes and forward looking statements

    Notes and forward looking statements 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, yo

  3. Slide 3: Imaging and Advanced Therapies with continued strength; Diagnostics underperforming

    Imaging and Advanced Therapies with continued strength; Diagnostics underperforming • Strong comparable revenue growth1) at 5.8% driven by Imaging and Advanced Therapies • Imaging posted 8.4% and Advanced Therapies 5.0% organic revenue growth1) • Strong equipment book-to-bill >1 • Adjusted profit ma

  4. Slide 4: Diagnostics in transition

    Diagnostics in transition Atellica Solution ramp-up progress: • 450+ analyzers shipped in Q3 (vs. 410+ in Q2) • High competitive win rate of >35% • Continued wins in complex settings • Number of analyzers going live further picked up vs. Q2 • Atellica Solution performance upgrades caused additional

  5. Slide 5: Ongoing outperformance of Imaging and Advanced Therapies in FY19

    Ongoing outperformance of Imaging and Advanced Therapies in FY19 • Major product innovations over the last 12 months Reinvest • Strong equipment order growth year-to-date Innovate • Gaining market share • Solid service growth with expanding installed base Value • Year-to-date margins at 20% and 19%

  6. Slide 6: Laying the foundation for future growth

    Laying the foundation for future growth New long-term partnership Portfolio strengthened • >€100m deal with the University of Missouri • Acquisition of Minicare BV • Ten-year collaboration on precision health and • Handheld technology developed for Point of Care digital healthcare solutions immunoas

  7. Slide 7: EPS growth fueled by continued strong revenue growth, lower tax rate and reduced interest expenses

    EPS growth fueled by continued strong revenue growth, lower tax rate and reduced interest expenses Revenue (€m) Adj. profit2) (€m) Earnings per share3) (€) Comparable Margin Net Income +5.8% -80 bps 293 353 growth1) y-o-y (€m) 3,569 3,300 16.0% 15.2% y-o-y +22% 528 543 0.35 0.29 Q3 FY2018 Q3 FY2019

  8. Slide 8: Imaging and Advanced Therapies expanding y-o-y growth and profitability, Diagnostics in transition

    Imaging and Advanced Therapies expanding y-o-y growth and profitability, Diagnostics in transition Imaging (€m) Diagnostics (€m) Advanced Therapies (€m) Comparable +8% +1% +5% growth1) Revenue 1,976 2,186 1,007 1,043 353 378 Q3 FY2018 Q3 FY2019 Q3 FY2018 Q3 FY2019 Q3 FY2018 Q3 FY2019 Margin y-o-y +1

  9. Slide 9: Imaging and Advanced Therapies again with solid conversion, Diagnostics with low cash

    Imaging and Advanced Therapies again with solid conversion, Diagnostics with low cash due to capex and operating leases Q3 Siemens Healthineers Profit to Free Cash Flow Imaging 1.0 CCR1) Diagnostics <0 Adv. Therapies 1.1 CCR1) 0.70 645′ 529′ 117′ -126′ 68′ -76′ 518′ 7′ -146′ -145′ 372′ 227′ Healthin

  10. Slide 10: Debt restructuring – significant interest savings especially 2020 and beyond

    Debt restructuring – significant interest savings especially 2020 and beyond SHS debt restructuring Comments • ~3.3 bn USD loan and corresponding interests transferred from US entity to German entities Transfer of loan • Hedging of US-loan payables in payables from US to Germany creates “synthetic E

  11. Slide 11: Outlook – full year guidance confirmed

    Outlook – full year guidance confirmed Comparable revenue growth1) Adj. profit margin2) Earnings per share (in €) 4 - 5% 17.5 - 18.5%3) +20 to +30%3) 3.7% 17.2% 1.26 2018 2019E 2018 2019E 2018 2019E 1) Y-o-y on a comparable basis, excluding translation and portfolio effects 2) Adjusted for severance

  12. Slide 12: Upcoming capital market communication

    Upcoming capital market communication Strategic & financial Update Meet-the-Management Q3 Results Q4 Results in London Jul 29, 2019 Nov 4, 2019 Dec 10, 2019 Roadshow Roadshow Segment London, Frankfurt London, Frankfurt, Presentations and Q&A Paris, Zurich Location: London Conferences Conferences Q3

  13. Slide 13: Appendix

    Appendix Q3 FY2019 Analyst Call Unrestricted © Siemens Healthineers AG, 2019 | Page 13

  14. Slide 14: Adjusted EBIT as new operational earnings KPI from FY 2020 onwards

    Adjusted EBIT as new operational earnings KPI from FY 2020 onwards Today: (Adjusted) Profit FY 2020: Adjusted EBIT Profit defined as income before income taxes, financing EBIT defined as earnings before interests and income taxes interest and amortization of intangible assets acquired in business co

  15. Slide 15: Q3 reconciliations and KPIs for group and segments

    Q3 reconciliations and KPIs for group and segments Q3 FY2019 Q3 FY2018 Advanced Advanced Healthineers Imaging Diagnostics Healthineers Imaging Diagnostics Position (€m) Therapies Therapies Profit 529 407 76 65 503 333 105 52 Severance charges 15 11 3 0 25 11 5 8 IPO costs 0 0 0 0 0 0 0 0 Adjusted pr

  16. Slide 16: Q3 group profit to net income and EPS reconciliation

    Q3 group profit to net income and EPS reconciliation Position (€m) Q3 FY2019 Q3 FY2018 Profit 529 503 Financial income/expenses, net in profit -4 -6 Amortization of intangibles assets acquired in business combinations -33 -33 Interest expenses, net1) -24 -33 therein interest income 12 5 therein inte

  17. Slide 17: Q3 balance sheet and net debt bridge

    Q3 balance sheet and net debt bridge Net debt overview Capital structure development in Q3 YTD (in €bn) in €bn Sep. 30th 2018 Jun. 30st 2019 Leverage1) 1.5x 1.6x Cash and cash equivalents 0.5 0.8 4.4 Receivables from Siemens Group 1.4 0.8 3.6 1.0 (financial cash) +0.9 Pensions 0.8 Short-term and lon

  18. Slide 18: SHS loan maturity profile

    SHS loan maturity profile SHS loans with Siemens Group as of 30.06.20191) (in mio €) Comments 1,5142) ▪ Total loan volume ~4’’2 EUR equivalent Other ▪ Average interest rate ~1.0%3) USD ▪ Majority of maturities exceeding FY 2019 868 870 Top 5 loans 97 6672) Volume Interest Currency Volume Maturity in

  19. Slide 19: Funded status unchanged

    Funded status unchanged Q3 FY2019 Key financials – Pensions and similar obligations Q1 Q2 Q3 in €bn1) FY2016 FY2017 FY2018 FY2019 FY2019 FY2019 Defined benefit obligation (DBO)2) (4.6) (4.1) (3.4) (3.4) (3.6) (3.7) Fair value of plan assets2) 2.4 2.4 2.6 2.5 2.7 2.7 Provisions for pensions and simil

  20. Slide 20: Q3 FY2019 Analyst Call Unrestricted © Siemens Healthineers AG, 2019 | Page 20

    Q3 FY2019 Analyst Call Unrestricted © Siemens Healthineers AG, 2019 | Page 20

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