Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Q2 FY2012 Earnings Presentation
24 slides from Siemens Aktiengesellschaft's earnings presentation, Apr 25, 2012
Slide 1: Q2 – Broad based revenue growth continues
Q2 – Broad based revenue growth continues Peter Löscher, President and CEO Joe Kaeser, CFO Q2 FY 2012, Analyst Conference London, April 25, 2012 Page 1 Q2 FY 2012, Analyst Conference, April 25, 2012 Copyright © Siemens AG 2012. All rights reserved.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on equity (after tax), or ROE (afte
Slide 3: Q2 FY 2012 – Key takeaways
Q2 FY 2012 – Key takeaways Book-to-bill temporarily below 1 due to fewer large orders in Energy and Transportation & Logistics Short cycle businesses continued to perform well Clear revenue growth across all Sectors led by Energy and strength in emerging markets Profitability burdened by charges in
Slide 4: Q2 FY 2012 shows clear revenue growth but with burdened profitability
Q2 FY 2012 shows clear revenue growth but with burdened profitability Siemens (continuing operations), in €m Q2 FY 11 Q2 FY 12 Change New orders 20,651 17,880 -16%1) Revenue 17,717 19,297 7%1) Book-to-bill 1.17x 0.93x Profit Total Sectors 3,6952) 1,929 -48%2) Income (from continuing operations) 3,17
Slide 5: Broad based order decline due to fewer large orders while revenue growth is driven by the Americas
Broad based order decline due to fewer large orders while revenue growth is driven by the Americas Regional business split Emerging / Developed markets split Q2 FY 12 Order growth y-o-y1) Q2 FY 12 Orders Europe/C.I.S./Africa/ME -22% (therein Germany) -40% 31% -31% Americas -5% (therein USA) +1% -8%
Slide 6: Energy – Clear revenue growth but profitability burdened by Transmission
Energy – Clear revenue growth but profitability burdened by Transmission Key Figures Energy Main developments in Q2 in €bn in €m Order intake lower due to fewer large orders across the board on tough comps in particular Orders1) Revenue1) Profit in Germany and Middle East -36% +10% -76% Clear revenu
Slide 7: German offshore HVDC transmission links with significant project costs to master challenges
German offshore HVDC transmission links with significant project costs to master challenges Project challenges Implications Expected project delays (installation schedule) Project charges are mainly covering: Extended project duration 2012 2013 2014 2015 Excess cost for additional resources and mate
Slide 8: Healthcare – Strong operational performance, execution of Agenda 2013 well on track
Healthcare – Strong operational performance, execution of Agenda 2013 well on track Key Figures Healthcare Main developments in Q2 in €bn in €m Improved revenue growth driven by Asia/Australia and Americas while Europe/ CAME is stable Orders1) Revenue1) Profit Launch of competitive midrange product
Slide 9: Industry – Strong short cycle businesses drive profit
Industry – Strong short cycle businesses drive profit Key Figures Industry Main developments in Q2 in €bn in €m Short cycle businesses continue to perform well in a robust business environment Substantial revenue increase in the Americas Orders1) Revenue1) Profit and clear growth in Europe -1% +8% +
Slide 10: Infrastructure & Cities – Revenue growth drives higher profit
Infrastructure & Cities – Revenue growth drives higher profit Key Figures Infrastructure & Cities Main developments in Q2 in €bn in €m Order intake decreased due to lower volume in large rolling stock orders Orders1) Revenue1) Profit Major order for Rail Systems – 20 Desiro trains for London Midland
Slide 11: One Siemens cockpit
One Siemens cockpit Financial target system Growth1) Margins compared to industry benchmarks Revenue growth (rolling 4 quarters Q2 FY 12) EBITDA Margins (H1 FY 12) Energy 9.0% 10-15% Siemens 4.5% Healthcare 18.1% 15-20% -4.7% Industry 15.3% 11-17% Competitors1) 9.2% Infrastr. & Cities 7.0% 8-12% EBI
Slide 12: Cash flow impacted by increased net working capital
Cash flow impacted by increased net working capital €m NWC turns based on Current Total Sector 7,013 structure 9.5 9.6 9.4 9.1 5,150 4,058 9.01) 7.71) FY 08 FY 09 FY 10 FY 11 H1 FY 12 3,641 1,929 1,727 697 866 519 928 FCF from cont. & -548 discont. ops -1,219 -781 FY 2012 FY 2011 -1,651 FY 2010 FY 2
Slide 13: Net Debt Bridge as of Q2 FY 12
Net Debt Bridge as of Q2 FY 12 €bn Operating Activities Adj. ind. Therein e.g. Adj. ind. Increase in inventories -0.6 ND/EBITDA ND/EBITDA Decrease in receivables +0.3 -0.06x 0.28x Increase in trade payables +0.3 Change in other assets and liabilities -1.4 Therein e.g. Income +1.0 Therein e.g. D&A +0
Slide 14: Update on our assumptions for FY 2012: Opex increase will slow down in H2
Update on our assumptions for FY 2012: Opex increase will slow down in H2 Customer Price Change Opex Capex Total Sectors in % of revenue (Cont. Ops.) Total Sectors in €bn in €bn 15.3 – 15.5 1.9 – 2.1 1.1 – 1.3 0.3 – 0.5 14.2 0.6 1.6 0.1 -2.5% – -3.0% primarily -2.8% 8.1 “Selling” & “R&D” 2.2 3.9 FY
Slide 15: Significant volatility remains 'Below Total Sectors' in FY 2012
Significant volatility remains 'Below Total Sectors' in FY 2012 Q2 FY 2012 'Below Total Sectors' What to expect for H2 FY 2012 €m Equity Investments remains volatile: 1,929 NSN further repositioning charges as expected 105 Timing and amount of profitability 74 6 improvement uncertain -22 0 -594 SFS
Slide 16: Revised Outlook FY 2012
Revised Outlook FY 2012 For fiscal 2012 we confirm our expectations of moderate organic revenue growth compared to fiscal 2011, and orders again exceeding revenues for a book-to-bill above 1. We continue to anticipate strong earnings performances in most of our businesses, including our industrial s
Slide 17: Financial calendar
Financial calendar April April 25, 2012 Q2 earnings release and analyst conference (London) May May 16, 2012 Deutsche Bank German and Austrian Corporate Conference (Frankfurt) May 22 – 23, 2012 EPG Conference (Florida) June 13, 2012 June Exane Conference (Paris) June 14, 2012 JP Morgan Capital Goods
Slide 18: Siemens investor relations contact data
Siemens investor relations contact data Mariel von Drathen +49-89-636-33780 Munich Office +49-89-636-32474 Internet: http://www.siemens.com/investorrelations Email: investorrelations@siemens.com Fax: +49-89-636-32830 Page 18 Q2 FY 2012, Analyst Conference, April 25, 2012 Copyright © Siemens AG 2012.
Slide 19: Reconciliation and Definitions for Non-GAAP Measures (I)
Reconciliation and Definitions for Non-GAAP Measures (I) To supplement Siemens’ Consolidated Financial Statements presented in accordance with International Financial Reporting Standards, or IFRS, Siemens presents the following supplemental financial measures: • New orders and order backlog; • Adjus
Slide 20: Reconciliation and Definitions for Non-GAAP Measures (II)
Reconciliation and Definitions for Non-GAAP Measures (II) New orders and order backlog - continued Order backlog represents an indicator for the future revenues of our Company resulting from already recognized new orders. Order backlog is calculated by adding the new orders of the current fiscal yea
Slide 21: Reconciliation and Definitions for Non-GAAP Measures (III)
Reconciliation and Definitions for Non-GAAP Measures (III) Total Sectors Profit Siemens uses Total Sectors profit to measure the sum of profit of the four Sectors Energy, Healthcare, Industry and Infrastructure & Cities. Profit of the Sectors is earnings before financing interest, certain pension co
Slide 22: Reconciliation and Definitions for Non-GAAP Measures (IV)
Reconciliation and Definitions for Non-GAAP Measures (IV) ROCE (adjusted) – continued ROCE (adjusted) at the Siemens group level on a continuing and discontinued operations basis Siemens also presents group ROCE (adjusted) on a continuing and discontinued operations basis. For this purpose, the nume
Slide 23: Reconciliation and Definitions for Non-GAAP Measures (V)
Reconciliation and Definitions for Non-GAAP Measures (V) Adjusted EBITDA, adjusted EBIT and adjusted EBITDA margins on a continuing operations basis – continued Adjusted EBITDA margins at the Sector level Siemens defines adjusted EBITDA margins at the Sector level as the ratio of adjusted EBITDA to
Slide 24: Reconciliation and Definitions for Non-GAAP Measures (VI)
Reconciliation and Definitions for Non-GAAP Measures (VI) II. Limitations on the usefulness of Siemens’ supplemental financial measures The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular: • With respect to new orders and order bac