Siemens Aktiengesellschaft · XETR:SIE
Siemens Aktiengesellschaft — Siemens — Commerzbank German Investment Seminar 2018
34 slides from Siemens Aktiengesellschaft's conference presentation, Jan 9, 2018
Slide 1: Siemens Vision 2020 – Fully on track
Siemens Vision 2020 – Fully on track Joe Kaeser, President and CEO Commerzbank German Investment Seminar | New York, January 9, 2018 Unrestricted © Siemens AG 2018 siemens.com
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. This presentation has been prepared for information purposes only and the information conta
Slide 3: Siemens by the numbers
Siemens by the numbers SIEMENS AG Revenue IB1 Profit IB1 Margin Net Income EPS €83.0bn €9.5bn 11.2% €6.2bn €7.44 FY 2017 Power and Gas Building Technologies Digital Factory Siemens Healthineers reported Financial Services Revenue €15.5bn €6.5bn €11.4bn €13.8bn Profit €1.6bn €0.8bn €2.1bn €2.5bn Prof
Slide 4: Vision 2020 - We have a compelling strategy
Vision 2020 - We have a compelling strategy Value Scale up • Customer and market focus • Digitalization at work Strengthen core • Innovation push • Healthcare IPO • Setting up Siemens Alstom • Successful integration of acquisitions Drive performance • Secure competitiveness in PG, PD and SGRE • Agil
Slide 5: We have done well since 2014 …
We have done well since 2014 … Vision 2020 Guidance to market Ongoing cost productivity ~€4bn ~€4bn ~€3bn FY 2015 FY 2016 FY 2017 FY 2014 FY 2015 FY 2016 FY 2017 Underperforming businesses Project charges (€bn) Employee profit sharing (€m) 400 Profit margin FY 2014 ~1.2 100 ~6% ~80% Avg. FY 2007-201
Slide 6: … and so have our shareholders
… and so have our shareholders €5.401) Continued dividend increases Strong share price performance Dividend per share € July 31, 2013 – December 31, 2017 +4% p.a. 140 April 26, 2017: €3.50 €3.60 €3.70 2) €3.30 New All-time closing €3.00 high at €133.20 (Xetra) 120 FY 2013 FY 2014 FY 2015 FY 2016 FY
Slide 7: What’s on the CEO’s mind for 2018?
What’s on the CEO’s mind for 2018? 7.70 +9% +2% 7.20 7.09 Deliver on our commitment to the market adj. EPS EPS excl. FY17 Severance FY18 ? Uncertainty from geopolitical tensions & nationalism vs. economic upswing Drive growth opportunities and digitalization across all businesses Tackle structural c
Slide 8: Key considerations for “Vision 2020+”
Key considerations for “Vision 2020+” Brand value Business Simplified focus governance Unrestricted © Siemens AG 2018 Page 8 New York, January 9, 2018 Commerzbank German Investment Seminar
Slide 9: Questions and Answers
Questions and Answers Unrestricted © Siemens AG 2018 Page 9 New York, January 9, 2018 Commerzbank German Investment Seminar
Slide 10: Appendix
Appendix Unrestricted © Siemens AG 2018 Page 10 New York, January 9, 2018 Commerzbank German Investment Seminar
Slide 11: One Siemens Financial Framework
One Siemens Financial Framework Clear targets to measure success and accountability One Siemens Financial Framework Siemens Growth: Capital efficiency Capital structure Siemens > most (ROCE2)) (Industrial net debt/EBITDA) relevant competitors1) 15 – 20% up to 1.0x (Comparable revenue growth) Total c
Slide 12: Siemens Vision 2020 - Execution well underway, most targets already achieved by FY 2017
Siemens Vision 2020 - Execution well underway, most targets already achieved by FY 2017 GOAL INTENT KPI Implement stringent company gover- Live lean governance and 1 nance with effective support functions drive continuous optimization €1bn cost savings by FY 2016 achieved Strengthen Sharpen our busi
Slide 13: Outlook FY 2018
Outlook FY 2018 Earnings per share Outlook in € 7.70 +9% We expect a mixed picture in our market environment in fiscal 2018, ranging from strong markets for our short-cycle businesses to unfavorable +2% dynamics in our energy generation markets, as well as geopolitical 7.20 uncertainties that may re
Slide 14: Industrial Business Profit Margin - Outlook FY 2018
Industrial Business Profit Margin - Outlook FY 2018 Guidance 12.0% 11.2% €+385m 11.2% 11.1% €-118m 11.0% €-175m €-138m €9.5bn €9.3bn €9.4bn Reported IFRS 15 Delta IFRS 15 eCar gain Pension plan Severance adj. IB Profit Margin IB Profit IB Profit amendment IB Profit excl. Severance FY17 FY17 FY17 FY1
Slide 15: Earnings per share - Outlook FY 2018
Earnings per share - Outlook FY 2018 in € Guidance 7.70 +9% 7.44 -0.10 7.34 +2% 7.20 -0.35 7.09 eCar gain -0.22 -0.29 +0.39 Pension plan amendment -0.13 ARO Hanau -0.57 Primetals +0.28 Reported EPS IFRS 15 Delta IFRS 15 EPS IB effects CMPA effects Severance adj. EPS FY17 EPS excl. FY17 FY17 Severanc
Slide 16: Financial cockpit – FY 2017
Financial cockpit – FY 2017 Orders Revenue Profit Industrial Business (IB) in €bn Comp. -2% in €bn Comp. +3% in €bn (nom.) (-1%) (nom.) (+4%) +8% 86.5 85.7 83.0 9.5 79.7 8.7 11.4% 11.7% B-t-B 1.09 1.03 Margin 10.8% 11.2% FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 Net income EPS (“all-in”) ROCE (“all-in”) i
Slide 17: PG: Market contraction impacts top and bottom line; EM: Performance improvement on track
PG: Market contraction impacts top and bottom line EM: Performance improvement on track Power and Gas (PG) Energy Management (EM) Orders Revenue Orders Revenue €bn €bn +17%1) -17%1) +23%1) -1%1) 3.6 4.5 3.6 3.4 4.1 3.6 3.4 3.2 Q4 FY 16 Q4 FY 17 Q4 FY 16 Q4 FY 17 Q4 FY 16 Q4 FY 17 Q4 FY 16 Q4 FY 17 P
Slide 18: Power and Gas – Siemens tackles structural market changes and strengthens global competitiveness
Drive performance Power and Gas – Siemens tackles structural market changes and strengthens global competitiveness Example: Large Gas Turbine business (>100MW) Announced measures Market development (in # Turbines) 249 • Consolidation plan announced for global 212 ~-40% setup adaptation 186 181 122 ~
Slide 19: The Siemens Power Service business is resilient
The Siemens Power Service business is resilient Increasing backlog… Globalized operations … Infusing technologies … (in €bn) FY 2017 revenue by customer location (in %) + Latin America (LAM) Co-creation of Middle East 31 FlexLTP digital services 5 North America (NAM) Innovation, e. g. Asia 3D printi
Slide 20: MO: All-time revenue high; BT: Great performance completes best year ever
BT: Great performance completes best year ever MO: All-time revenue high – automation business drives profit Building Technologies (BT) Mobility (MO) Orders Revenue Orders Revenue €bn €bn +8%1) +7%1) +4%1) +11%1) 1.8 1.9 1.7 1.8 2.3 2.3 2.1 2.2 Q4 FY 16 Q4 FY 17 Q4 FY 16 Q4 FY 17 Q4 FY 16 Q4 FY 17 Q
Slide 21: DF: Excellent short-cycle continues; PD: Trough reached
DF: Excellent short-cycle continues – further market share gains PD: Trough reached, gradual improvement ahead Digital Factory (DF) Process Industries and Drives (PD) Orders Revenue Orders Revenue €bn €bn +6%1) +9%1) +9%1) +0%1) 2.7 2.9 2.8 3.2 2.2 2.3 2.4 2.4 Q4 FY 16 Q4 FY 17 Q4 FY 16 Q4 FY 17 Q4
Slide 22: HC: Capturing growth – excellent margin; SGRE: Strong order wins
HC: Capturing growth – excellent margin SGRE: Strong order wins and challenges in operations Healthineers (HC) Siemens Gamesa Renewable Energy (SGRE) Orders Revenue Orders Revenue €bn €bn +7%1) +5%1) +84%1) +6%1) 3.9 3.9 3.7 3.7 2.8 1.2 1.6 2.3 Q4 FY 16 Q4 FY 17 Q4 FY 16 Q4 FY 17 Q4 FY 16 Q4 FY 17 Q
Slide 23: Setting the course for renewable energy, mobility and healthcare businesses
Strengthen core Setting the course for renewable energy, mobility and healthcare businesses for long-term value creation 1| Areas of growth? Stake of 17.34% sold 2| Potential profit pool? 3| Why Siemens? 4| Synergetic value? 5| Paradigm shifts? Merger closed IPO plan for H1 MoU signed, expected Siem
Slide 24: Leadership in Digital Enterprise strengthened
Scale up Leadership in Digital Enterprise strengthened Siemens further gaining market share Revenue FY 2017 Market CAGR FY18-22 Strategic direction Digitalization Siemens software Digital services Strengthen leadership Leader ~€4.0bn ~€1.2bn ~+8% in the Digital Enterprise MindSphere – IoT operatin
Slide 25: Invest in cloud-based business models will be overcompensated by traditional software
Invest in cloud-based business models will be overcompensated by strong execution of traditional software business Software business within Digital Factory MindSphere Revenue (in €bn) • Current 'Platform as a Service' business plan with focus on CAGR: 10-15% partners in industrial IoT market ~3.4 ~2
Slide 26: Executing Vision 2020: Accelerating growth momentum through customer focus
Scale up Executing Vision 2020 Accelerating growth momentum through relentless customer focus Siemens Net Promoter Score Dedicated growth initiatives +36% China Target Vision 2020: +20% • Belt & Road Initiative : €100bn infrastructure opportunities with Chinese EPC‘s until 2025 FY 2014 FY 2015 FY 20
Slide 27: Executing Vision 2020: Push for innovation drives competitiveness
Scale up Executing Vision 2020 Push for innovation drives competitiveness and customer value Higher R&D intensity continues… … and delivers impressive outcomes R&D expenses in €bn (% of revenue) Healthineers • Magnetom Terra – first 7 Tesla MRI ~+40% scanner for clinical use 6.2% • Unmatched visuali
Slide 28: Facts and Figures
Facts and Figures Market Key strengths Wind installations 2016-2020E (MW) +3.8% • Large installed base of ~83GW offers huge service 61.376 63.431 potential 57.648 54.642 53.873 • Strong order backlog of ~€21bn 2016 2017e 2018e 2019e 2020e Source: BNEF and MAKE Q3 17 Market Outlook; 2016 GWEC Global
Slide 29: Healthineers Strategy 2025 set up to ensure market leadership beyond 2025
Healthineers Strategy 2025 set up to ensure market leadership beyond 2025 Mid-term and beyond New growth Mid-term 2017-19 Upgrading Reinforcing Strategic Deliver on core business – growth posture fundamentals and productivity Tap into adjacent growth markets "Market leadership 2025" Strategic • Subs
Slide 30: Clear path for Siemens Healthineers IPO
Clear path for Siemens Healthineers IPO Decision to go public (Q4 FY 2016) Healthineers Strategy 2025 and stringent execution roadmap launched (08/2017) Significant new product launches gain traction in the market Atellica Solution entering the market (Q4 FY 2017) Combined financial statements and p
Slide 31: Siemens Alstom Merger goals are sustainable and attractive in the long term
Siemens Alstom Merger goals are sustainable and attractive in the long term Financial impact for Siemens Pro-forma combined revenue (in €bn) • Deal cash-neutral for Siemens with contribution of Siemens Mobility division plus Alstom Rail Traction Drives business in exchange for shares in Alstom CAGR
Slide 32: Siemens Alstom Next steps
Siemens Alstom Next steps Signing of Memorandum of Understanding (including agreed form of Business Combination Agreement) Alstom employee consultation process Signing Business Combination Agreement Q1 CY18 Alstom Shareholder Meeting Q2 CY18 Siemens Mobility Carve Out Until Q2/Q3 CY18 Expected Closi
Slide 33: Financial calendar
Financial calendar January 9, 2018 Commerzbank German Investment Seminar (New York) January 16, 2018 January Capital Market Day Siemens Healthineers (London) January 31, 2018 Annual General Meeting + Q1 Analyst Call (Munich) February 21, 2018 Roadshow UK (Edinburgh) February February 22, 2018 Roadsh
Slide 34: Investor Relations contacts
Investor Relations contacts Investor Relations Internet: www.siemens.com/investorrelations Email: investorrelations@siemens.com IR-Hotline: +49 89 636-32474 Fax: +49 89 636-1332474 Unrestricted © Siemens AG 2018 Page 34 New York, January 9, 2018 Commerzbank German Investment Seminar