Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Q2 FY2013 Earnings Presentation
20 slides from Siemens Aktiengesellschaft's earnings presentation, May 2, 2013
Slide 1: Mixed picture, Focus on Execution
Peter Löscher, President and CEO – Joe Kaeser, CFO Mixed picture, Focus on Execution Q2 FY 2013, Analyst Conference London, May 2, 2013 Restricted © Siemens AG 2013. All rights reserved. siemens.com/answers
Slide 2: Safe Harbour Statement
Safe Harbour Statement This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expects,” “looks forward to,” “an
Slide 3: Orders and EPS growth are highlights in an operationally challenging quarter
Orders and EPS growth are highlights in an operationally challenging quarter Siemens (continuing operations), €m Q2 FY 12 Q2 FY 13 Change Orders 17,880 21,451 20%1) Revenue 19,297 18,011 -6%1) Book-to-bill 0.93x 1.19x Profit Total Sectors 1,929 1,374 -29% Income from continuing operations 979 982 0%
Slide 4: Large project orders boost orders in Europe
Large project orders boost orders in Europe Regional business split Purchasing Managers Index Q2 FY 13 Order growth y-o-y1) Index US ISM Mfg PMI Eurozone Mfg PMI 65 Expanding economy Europe/C.I.S./Africa/ME +34% 60 (therein Germany) +58% 55 50 51.32) Americas +11% 45 46.5 Contracting economy (therei
Slide 5: Energy: Continued strong performance backed by Fossil&Service
Energy Continued strong performance backed by Fossil&Service Key Figures Energy Main developments in Q2 €bn €m • Strong book-to-bill at 1.35; sharp order Orders 1) Revenue 1) Profit growth driven by two large offshore wind +45% orders in Europe -9% -4% 8.5 • Revenue impacted by less turnkey projects
Slide 6: Healthcare: Solid execution of 'Agenda 2013'
Healthcare Solid execution of ‘Agenda 2013' Key Figures Healthcare Main developments in Q2 €bn €m • Order growth driven by strength in Emerging Orders 1) Revenue 1) Profit markets, especially in China • Modest revenue decline mainly due to revenue +5% +4% -1% delays into H2 424 445 3.2 3.3 3.4 3.3 •
Slide 7: Industry: Weak markets & unfavourable product mix affect margins
Industry Weak markets & unfavourable product mix affect margins Key Figures Industry Main developments in Q2 €bn €m • Business volumes in short-cycle businesses Orders 1) Revenue 1) Profit affected by more challenging market -47% environment (in particular China and Germany) -11% -9% 662 • Industry
Slide 8: Infrastructure & Cities: Charges for high speed trains severely impact profitability
Infrastructure & Cities Charges for high speed trains severely impact profitability Key Figures Infrastructure & Cities Main developments in Q2 €bn €m • Order intake – Substantial increase driven by Orders 1) Revenue 1) Profit two major rail orders in Europe +34% • Transportation & Logistics – €161m
Slide 9: One Siemens cockpit – H1 FY 2013
One Siemens cockpit – H1 FY 2013 Deterioration of KPI’s call for solid 'Siemens 2014' execution Financial target system Growth1) Margins compared to industry benchmarks Revenue growth (rolling 4 quarters Q2 FY 13) EBITDA Margins (H1 FY 2013) Energy 10.5% 10-15% Siemens 2.7% Healthcare 19.3% 15-20% -
Slide 10: Full commitment to deliver on 'Siemens 2014' throughout the organisation
Full commitment to deliver on 'Siemens 2014' throughout the organisation Target 'Siemens 2014' confirmed H1 FY 2013 Productivity Ramp Up Total Sector €bn ~4.0 ≥ 12% Profit Margin1) 9.2% Total Sector 7,284 Profit1) ~2.0 €m FY 2012 Target FY 2014 Transformation Cost (in €m)2) ~45% H1 FY 2013 FY 2013e
Slide 11: Incremental savings of ~€300m targeted to compensate for adverse effect
Incremental savings of ~€300m targeted to compensate for adverse effect from more conservative growth expectation Total Sector Profit Margin (% revenue) ≥ 12.0% +280bps 9.2%1) Modest 2.5 - 3% growth p.a. pricing pressure Profit Volume/ Price Cost Gross Profit Target 2012 Degression Erosion Inflation
Slide 12: Assumptions and goals for 'Siemens 2014' are aligned into the Sectors
Assumptions and goals for 'Siemens 2014’ are aligned and cascaded down into the Sectors Sector Energy Sector Industry €bn ≥ 12.0% €bn ~50 bps +510 bps ≥ 14.0% +150 bps ≥ 13.5% 6.9%1) 12.0% 3.3 Exit Solar 1.1 Exit Water Techno- 7.8%2) logies Integrate 3 – 3.5% p. a. < 1% p. a. LMS Profit Volume/ Pric
Slide 13: OSRAM: Listing & transformation program well under way
OSRAM Listing & transformation program well under way > 8% EBITA margin target from 2015 onwards Spin-off process Transformation program PUSH on track • Jan 23: AGM Approval by >98% • Gross savings of ~€1bn over three years (FY 13 – FY 15) • May 17: Capital Market Day OSRAM • Headcount reduction of
Slide 14: Significant swing in Equity Investments (NSN) boost 'below-the-line' performance
Significant swing in Equity Investments (NSN) boost 'below-the-line' performance Q2 FY 2013 'Below Total Sectors' What to expect for H2 FY13 €m • Equity Investments 113 21 • Operational progress in NSN continues, but -2 results expected to remain volatile in coming 1,374 8 -153 quarters -25 • Furthe
Slide 15: Free Cash Flow: Decent performance in Q2 after a weak start in Q1
Free Cash Flow Decent performance in Q2 after a weak start in Q1 €m Operating Working Capital (OWC) turns 5,150 Total Sector 9.0 8.9 7.1 4,700 FY 2011 FY 2012 Q2 FY 2013 1,727 928 866 291 -61 FY 2013 -1,204 -676 FY 2012 -1,395 FY 2011 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Restricted © Siem
Slide 16: Net debt increase in Q2 mostly due to dividend and LMS payment
Net debt increase in Q2 mostly due to dividend and LMS payment €bn Q2 ∆Q1 • SFS Debt +14.9 +0.4 Operating Activities • Pensions -9.9 -0.0 • Credit guarantees -0.6 -0.3 Adj. ind. Net Debt/ • Hybrid adjustments +0.9 -0.0 EBITDA therein: • Fair value adjustm. +1.5 -0.1 1.0x (hedge accounting) (Q1 FY 13
Slide 17: Outlook
Outlook • In fiscal 2013, Siemens is implementing 'Siemens 2014', a company-wide program supporting our One Siemens framework for sustainable value creation. • The goal of the program is to raise our Total Sectors profit margin to at least 12% by fiscal 2014. • For fiscal 2013, we confirm our expect
Slide 18: Financial calendar
Financial calendar May 2, 2013 May Q2 Earnings Release / Analyst Conference May 3, 2013 Q2 Roadshow Germany (Frankfurt) May 15, 2013 Q2 Roadshow US (Boston, New York) May 17, 2013 Capital Market Day Osram (Munich) May 27 – 30, 2013 Asia Roadshow, Morgan Stanley China Conference (Beijing) June 13, 20
Slide 19: Siemens Investor Relations contact data
Siemens Investor Relations contact data Mariel von Drathen +49-89-636-33780 Munich Office +49-89-636-32474 Fax: +49-89-636-32830 Internet: http://www.siemens.com/investorrelations Email: investorrelations@siemens.com Restricted © Siemens AG 2013. All rights reserved. Page 19 London, May 2, 2013 Q2 F
Slide 20: Reconciliation and Definitions for Non-GAAP Measures
Reconciliation and Definitions for Non-GAAP Measures This document includes supplemental financial measures that are or may be non-GAAP financial measures. Orders and order backlog; adjusted or organic growth rates of revenue and orders; book-to-bill ratio; Total Sectors profit; return on equity (af