Siemens Healthineers Ag · XETR:SHL
Siemens Healthineers — Q4 2023 Earnings Presentation
34 slides from Siemens Healthineers's earnings presentation, Nov 8, 2023
Slide 1: Q4 Analyst Call
Q4 Analyst Call Bernd Montag, CEO | Jochen Schmitz, CFO Nov 8, 2023
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: Q4 and FY 2023
Q4 and FY 2023 3 Unrestricted © Siemens Healthineers, 2023
Slide 4: Q4 – Strong finish…
Q4 – Strong finish… 1.16 Equipment book-to-bill 11% Comparable revenue growth (Ex antigen) 16% Adjusted EBIT growth (Ex antigen) >€0.5bn Free cash flow Q4 FY2023 Unrestricted © Siemens Healthineers AG, 2023 l 4
Slide 5: …across all segments
…across all segments Imaging Diagnostics Continued strong performance Transformation on track • Excellent revenue growth of 11% at • Continued revenue growth (ex antigen) and industry-leading margins margin again positive • Further growing order book • Transformation savings kicking in as planned Va
Slide 6: Delivering on “New Ambition”
Delivering on “New Ambition” Key achievements in FY2023 Outlook achieved • Leading innovations introduced to market in all segments Revenue growth • Taking decisive actions: Diagnostics transformation program, refocusing 2023 2023 Endovascular Robotics, diligent execution of pricing measures Outlook
Slide 7: CEO update
CEO update 7 Unrestricted © Siemens Healthineers, 2023
Slide 8: Sustaining double-digit earnings growth by 2025 and beyond
Sustaining double-digit earnings growth by 2025 and beyond By 2025 Beyond 2025 6-8% Mid to high Revenue growth1 CAGR2 Revenue growth1 single-digits 12-15% Adj. EPS growth CAGR2 Adj. EPS growth Double-digits Q4 FY2023 1 Comparable revenue growth excluding foreign exchange and portfolio effects│ 2 CAG
Slide 9: Our sources of growth
Our sources of growth Expanding access to care for billions of people Innovating continuously for better diagnosis and treatment The world innovates for us Enabling efficient operations to Novel drugs New theranostic agents improve productivity Robotic treatments More sophisticated devices Provider
Slide 10: Our unique capabilities
Our unique capabilities Patient Twinning Precision Therapy Personalization of diagnosis, Intelligent and image guided therapy selection and monitoring, treatment for the most after care and managing health threatening diseases Digital, Data and AI Leveraging digital, data and AI and advance provider
Slide 11: Our sources of value creation
Our sources of value creation Leveraging the power of our unique, Crystalizing full potential of synergistic portfolio and capabilities growth and profitability Winning together Transforming to win Imaging, Varian, Advanced Therapies Diagnostics Creating value Q4 FY2023 Unrestricted © Siemens Health
Slide 12: Leveraging the power of our unique, synergistic portfolio and capabilities
Leveraging the power of our unique, synergistic portfolio and capabilities Winning together • Unmatched breadth and depth of leading synergistic portfolio • Unmatched relevance in all major disease states and key clinical departments • Continuously expanding and leveraging of scale advantages in R&D
Slide 13: Crystalizing full potential of growth and profitability
Crystalizing full potential of growth and profitability • Strong product portfolio in an attractive market Transforming to win • Transformation program ongoing to optimize set-up, to right-size structure and to support acceleration of growth • On track to reach €300m cost out by 2025 • Crystalizing
Slide 14: Raising the bar on our sustainability commitment
Raising the bar on our sustainability commitment HEALTHCARE ACCESS RESOURCE PRESERVATION DIVERSE AND ENGAGED HEALTHINEERS Patient impact Net zero Diversity 260 million patient touchpoints1 by 2030 90% reduction in Scope 1 & 2 emissions 30% women representation in Senior Management Expanding to patie
Slide 15: We pioneer breakthroughs in healthcare. For everyone. Everywhere. Sustainably.
We pioneer breakthroughs in healthcare. For everyone. Everywhere. Sustainably. 15 Q4 FY2023 Unrestricted © Siemens Healthineers, 2023 Unrestricted © Siemens Healthineers AG, 2023 l 15
Slide 16: CFO update
CFO update 16 Unrestricted © Siemens Healthineers, 2023
Slide 17: Strong finish in Q4
Strong finish in Q4 Revenue (€m) Comparable +7.5% Growth1 Ex antigen +10.8% 6.000 6.056 • Excellent equipment book-to-bill of 1.16 • Very strong revenue growth of 10.8% ex antigen with revenue growth across all segments (growth of 7.5% incl. antigen) Q4 FY2022 Q4 FY2023 • Very strong growth ex antig
Slide 18: Imaging – continued strong performance; Diagnostics – transformation on track
Imaging – continued strong performance Diagnostics – transformation on track Imaging (€m) Diagnostics (€m) Adjusted revenue Adj. EBIT (margin) Adjusted revenue Adj. EBIT (margin) Comparable Margin Comparable Margin Growth +10.6% Y-o-Y -40 bps Growth -10.6% Y-o-Y -980 bps 731 746 169 3.198 3.325 1.44
Slide 19: Varian – very strong finish; Advanced Therapies – robust finish
Varian – very strong finish Advanced Therapies – robust finish Varian (€m) Advanced Therapies (€m) Adjusted revenue Adj. EBIT (margin) Adjusted revenue Adj. EBIT (margin) Comparable Margin Comparable Margin Growth +29.8% Y-o-Y +660 bps Growth +5.1% Y-o-Y +220 bps 190 89 99 1.017 578 564 829 100 (18.
Slide 20: Clear priorities for continuous value creation
Clear priorities for continuous value creation Imaging, Varian, Advanced Therapies Diagnostics Equipment book-to-bill continuously >1 Transforming business to deliver sustainable growth Continuing market share gains, growing equipment order backlog Atellica Solution and Atellica CI Analyzer newest s
Slide 21: High share of recurring revenues smooths revenue growth
High share of recurring revenues smooths revenue growth, and ensures resilience in challenging environments Imaging, Varian, AT1 Diagnostics Recurring • Growing recurring revenues from Recurring Non-recurring • High share of recurring ~45% Non-Recurring service and software ~10% revenues from reagen
Slide 22: Equipment book-to-bill is the most meaningful indicator for future revenue growth
Equipment book-to-bill is the most meaningful indicator for future revenue growth Equipment book-to-bill 1.06 1.15 1.23 1.15 • Equipment book-to-bill above 1 expands order Equipment 1,36 backlog – substantiating future revenue growth 1,21 1,18 1,19 1,22 1,29 1,23 book-to-bill 1,15 1,16 1,08 1,17 1,1
Slide 23: Outlook 2024
Outlook 2024 Siemens Healthineers 2023 2024E Comp. revenue growth 1.2% 4.5% to 6.5% Comp. revenue growth, ex-antigen 8.3% 5.0% to 7.0% Adj. basic EPS (€) 2.14 2.10 to 2.30 Main assumptions Comp. revenue growth 2023 2024E Adj. EBIT margin 2023 2024E Imaging 10.9% 6% to 8% Imaging 21.8% 21.0% to 22.5%
Slide 24: Sustaining double-digit earnings growth by 2025 and beyond
Sustaining double-digit earnings growth by 2025 and beyond By 2025 Beyond 2025 6-8% Mid to high Revenue growth1 CAGR2 Revenue growth1 single-digits 12-15% Adj. EPS growth CAGR2 Adj. EPS growth Double-digits Imaging to grow by at least mid single-digits; continued margin expansion from scale Segment
Slide 25: We pioneer breakthroughs in healthcare. For everyone. Everywhere. Sustainably.
We pioneer breakthroughs in healthcare. For everyone. Everywhere. Sustainably. 25 Q4 FY2023 Unrestricted © Siemens Healthineers, 2023 Unrestricted © Siemens Healthineers AG, 2023 l 25
Slide 26: Appendix
Appendix Q4 FY2023 Unrestricted © Siemens Healthineers AG, 2023 l 26
Slide 27: Free cash flow higher than in prior-year quarter; strong Q4 revenue led to increased OWC
Free cash flow higher than in prior-year quarter; strong Q4 revenue led to increased level of OWC Q4 FY23 Siemens Healthineers EBIT to Free Cash Flow (€m) Imaging 0,9 CCR2 Diagnostics <0 Varian 0,5 Adv. Therapies 0,9 CCR1 0.75 1″186 234′ 1″002 952′ -405′ 858′ 93′ -65′ 118′ 168′ 47′ 715′ -241′ -47′ 5
Slide 28: FY23 balance sheet and net debt bridge
FY23 balance sheet and net debt bridge Cash flow from operating activities held back by increased OWC Net debt overview Capital structure development in FY23 (in €bn) in €bn Sep 30, 2022 Sep 30, 2023 Leverage1 3.0x 3.7x Cash and cash equivalents 1.4 1.6 13.7 12.7 0.5 Receivables from the Siemens 0.7
Slide 29: Loan maturity profile
Loan maturity profile Loans with Siemens Group as of Sep 30th, 20231 (in €m) Comments Other ▪ Total loan volume ~€13.2bn equivalent EUR ▪ Average interest rate ~1.7% p.a.3 USD Top 10 loans ranked in € volume 2,197 Notional Volume Volume Interest 87 Maturity Currency in m in €m rate 254 USD $1,689 €1
Slide 30: Provisions for pensions
Provisions for pensions Q4 FY2023 Key financials – Pensions and similar obligations Q1 Q2 Q3 Q4 in €bn1 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2023 FY2023 FY2023 Defined benefit (3.4) (3.8) (3.8) (4.1) (3.3) (3.2) (3.3) (3.3) (3.2) obligation (DBO) Fair value of plan 2.6 2.8 2.8 3.3 2.8 2.7 2.8
Slide 31: New adjustment definition for adjusted EBIT and adjusted EPS
New adjustment definition for adjusted EBIT and adjusted EPS New definition for adjustments Adjustments as of new definition To maintain consistency of comparable financial results (in €m) FY2023 between periods, the definition of adjusted EBIT and adjusted EPS will be modified to exclude other expe
Slide 32: Figures based on the new adjustment definition for Diagnostics and Siemens Healthineers
Figures based on the new adjustment definition for Diagnostics and Siemens Healthineers New adjustment definition for adjusted EBIT and adjusted EPS (effective as of Oct 1st, 2023) Q1 Q2 Q3 Q4 in €m FY2023 FY2023 FY2023 FY2023 FY2023 Diagnostics Adjusted EBIT 10 -33 6 52 35 Adjusted EBIT margin 0.8%
Slide 33: Glossary
Glossary Adjusted revenue is defined as consolidated revenue reported in the company’s consolidated statements of income adjusted for effects in line with revaluation of contract liabilities from IFRS 3 purchase price allocations. Comparable revenue growth is defined as the development of adjusted r
Slide 34: Q4 FY2023 Unrestricted © Siemens Healthineers AG, 2023 l 34
Q4 FY2023 Unrestricted © Siemens Healthineers AG, 2023 l 34