SIEMENS AG Commerzbank German Investment Seminar New York, January 12, 2016
Joe Kaeser, President and CEO
© Siemens AG 2016
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 "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens' management, of which many are beyond Siemens' control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Risks in the Annual Report.
Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.
This document includes - in IFRS not clearly defined - supplemental financial measures that are or may be non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens' net assets and financial positions or results of operations as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures may calculate them differently.
Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Divisional structure and Revenue / Profit FY 2015
Industrial Business
Power and Gas
Wind Power and Renew- ables
Power Generation Services
Energy Manage- ment
Building Technolo- gies
Mobility Digital Factory
Process Industries and Drives
Healthcare (separately managed)
Financial Services
11-15% 5-8% 7-10% 8-11% 6-9% 14-20% 8-12% 15-19% 15-20%
€13.2bn
€1.4bn 10.8%
€5.7bn
€0.2bn 2.8%
Part of PG and WP
€11.9bn
€0.6bn 4.8%
€6.0bn
€0.6bn 9.2%
€7.5bn
€0.6bn 7.8%
€10.0bn
€1.7bn 17.5%
€9.9bn
€0.5bn 5.4%
€12.9bn
€2.2bn 16.9%
Assets
€25.0bn
IBIT
€0.6bn
Key Figures in €bn FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 |
Revenue1) 69.0 | 74.1 | 72.8 | 71.2 | 75.6 |
Net income 5.9 | 4.3 | 4.4 | 5.5 | 7.4 |
EPS (basic) in € 6.55 | 4.74 | 5.08 | 6.37 | 8.84 |
Free Cash Flow 5.3 | 4.7 | 5.3 | 5.2 | 4.7 |
1) Continuing operations |
Value
Strengthen core
Stringent capital allocation
Scale up
Innovation initiative
Customer and market focus
Digitalization at work
Drive performance
Cost reduction support functions (€1bn)
Global footprint optimization
Fix underperforming businesses
Ownership culture drives high performance team
2015 2016 2017 2018 2019 2020
Strategic direction
Operational consolidation
Optimization
Accelerated growth and outperformance
Until | Execution steps until 2017 | |
Q4 2014 | Implementation of new and simplified organization by Oct. 1 | |
Introduction of incentive system 2015 | ||
Q2 2015 | Stringent portfolio optimization - closing of announced divestments (page 14) | |
Measures for structural optimization defined (governance & support functions) | ||
Decision on resource allocation for underperforming businesses (page 15) | ||
Q4 2015 | Cost reduction measures on track, €400m savings achieved (page 16) | |
Accelerated growth in vertical software and digital services (€3.7bn in 2015) | ||
Share buy-back executed (€4bn) | ||
Q4 2016 | Update on execution of further portfolio optimization | |
Progress on cost reduction: Major portion of €1bn savings effective | ||
Q4 2017 | Underperforming businesses fixed | |
€1bn cost savings fully effective | ||
Global trends
Digital transformation
Market development (illustrative)
market growth
Globalization
Digitalization
4-6%
Urbanization
Automation
market growth
Demographic change
Climate change
Electrification 2-3%
market growth
Today Mid term - 2020
Power Generation
Power transmission, distribution, and smart grid
Imaging and in-vitro diagnostics
Efficient energy application
Productivity Energy efficiency
Sinalytics
Common technology platforms
EM WP
DF
PD
PG PS
Sinalytics
Customer value through applications
MO
Data analytics
Sinalytics
Data visualization
Modeling/Analysis
Data management
HC BT
Data integration
Cloud / Connectivity Cyber Security
Availability Security
Productivity
Energy efficiency
EM
WP
Mobility Digital Services
26 trains for Renfe (Spain)
High Speed Train service between Madrid and Barcelona
DF
PG
PS
Sinalytics
Customer value through applications
PD
MO
Remote diagnosis facilitates predictive maintenance
Shift from corrective to preventive
measures
Increased availability and avoidance of unplanned downtimes
HC
BT
99.9% availability
Availability
Security
Full reimbursement of ticket prices for passengers when a train is >15 minutes late
Only one of 2,300 trips is really late
Power Generation Digital Services
Productivity
Energy efficiency
EM
WP
DF
PG
PS
Sinalytics
Customer value through applications
Remote diagnostics and prediction of service needs
PD
MO
Fleet statistics, benchmarking
Spare parts analytics and additive manufacturing
1.02
1.00
0.98
0.96
0.94
0.92
Starts
0 500 1,000 1,500 2,000
GT Efficiency
Advanced Mature
Asset availability
and flexibility
Operating efficiency
Optimized service delivery
HC
BT
> 40 Flex LTP-contracts sold
Availability
Security
Attractive customer value from performance based contracts
Delivery and life cycle optimization
Digitalization
Vertical software
~€3.1bn
Revenue FY 2015
Digital services
~€0.6bn
Revenue FY 2015
+~16%
Automation
Profitability ++
Enhanced automation
Profitability
Classic services
+++
Build on deep domain know-how
Leverage M&A and R&D invest
Roll-out of cross-
Electrifi- cation
~€19bn
Revenue FY 2015
~€15bn
Revenue FY 2015
divisional Sinalytics platform
>300k connected
Profitability ++
Profitability
+++
devices; 17 Terabytes of data per month
Enhanced electrification (~€39bn)
+~9%
Note: Figures based on Industrial Business (Growth FY 2015 vs. FY 2014 rebased)
Attractive dividend yield
Dividend increase to €3.50 resulting in an attractive 4.4% dividend yield2)
Share buyback finalized
€4bn from May 2014 until October 2015
43m shares repurchased
Average purchase price: €92.733)
48%
57%
50%
€101
42% 38%
€5.401)
+6%
€97
389
413
€3.00
€3.00
€3.30
€3.50
199206
€83
€3.00
€86
85
FY 11
FY 12
FY 13
FY 14
FY 15
Dividend per share
Dividend payout ratio
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
2014 2015
Share buyback volume (in €m)
Average share price
First endowment to Siemens Profit Sharing Pool of €200m
New share buyback of up to €3.0bn over up to 36 months
Effect of OSRAM stock distribution to shareholders of €2.40 per share; not reflected in dividend payout ratio; 2) Assumes 808m shares outstanding at AGM, Share price Sept. 30, 2015 of €79.94; 3) Rounded average price per share including a final payment financially to be treated as purchase price adjustment
Thank you for your attention - your questions, please!
Executing Vision 2020 Capital allocation along strategic imperativesAero-derivative gas turbines and compressors
£785m purchase price and £200m for exclusive access to long-term aero-technology developments
Compressors, turbines and engines for
Oil & Gas
Total consideration of US$7.8bn
1| Areas of growth?
2| Potential profit pool? 3| Why Siemens?
4| Synergetic value? 5| Paradigm shifts?
Healthcare IT
Divestment to Cerner for US$1.3bn
Microbiology
Divestment to Beckman Coulter for US$ ~450m
Audiology
Divestment to EQT for €2.15bn
Water Technologies
Divestment to AEA Partners
Metals Technologies
Joint Venture Primetals Technologies w. MHI
B/S/H/
Divestment of 50% share to Bosch
Equity value €3.25bn - thereof €3.0bn cash purchase price and €250m dividend & special dividend
Unify
Divestment of 49% stake to Atos announced
© Siemens AG 2016
Underperforming businesses Decision along imperatives
Underperforming businesses show improvementUnderperforming businesses
Unconsolidated Revenue FY 2015 in €bn
~15
~1.2
~14
Siemens Compressors
Fiscal
Year 2013 2014 2015 2017e 2020e
Margin -4% -3% +1% ~6% >8%
Underperforming businesses as of Q2 FY 2015
Reverse integration into Dresser-Rand
Remaining underperforming businesses
Tight monitoring of business plans
Footprint optimization
Sharpening business scope
Partnering and divestitures an option
Cumulated effects of savings
€700m -
€900m
€800m -
€900m
€1bn
€1bn
€150m -
€200m
€400m
FY 2015 FY 2016e FY 2017e
View on distribution of savings as of Q2 FY 2015
Capital efficiency
(ROCE2))
15-20%
Siemens
One Siemens Financial Framework
Growth:
Siemens > most relevant competitors1)
(Comparable revenue growth)
Capital structure
(Industrial net debt/EBITDA)
up to 1.0x
Dividend payout ratio 40-60%4)
Total cost productivity3)
3-5% p.a.
Profit Margin ranges of businesses (excl. PPA)5)
PG 11-15%
EM 7-10%
MO 6-9%
PD 8-12%
SFS6) 15-20%
WP 5-8%
BT 8-11%
DF 14-20%
HC 15-19%
1) ABB, GE, Rockwell, Schneider, Toshiba, weighted; 2) Based on continuing and discontinued operations; 3) Productivity measures divided by functional costs (cost of sales, R&D, SG&A expenses) of the group; 4) Of net income excluding exceptional non-cash items; 5) Excl. acquisition related amortization on intangibles;
6) SFS based on return on equity after tax
in €bn
Orders
-1%
(+6%)
Comp.
(nom.)
Revenue
-1%
(+6%)
Profit Industrial Business (IB)
in €bn
+1%
in €bn
Net Income
+34%
77.782.3
71.2
75.6
7.7
7.8
10.8%
5.5
7.4
1.09
B-t-B 1.09
Margin 10.6% 10.1%
FY 14 FY 15
FY 14 FY 15
FY 2014
FY 2015
FY 2014
FY 2015
in €
EPS ("all-in")
ROCE ("all-in") Capital structure
+39%
6.37
8.84
0.6x |
0.1x |
15-20% ≤1
17.2% 19.6%
FY 2014
FY 2015
FY 2014
FY 2015
FY 2014
FY 2015
x.x% Margin as reported x.x% Margin excl. severance
January
January 12, 2016
Commerzbank German Investment Seminar (New York)
January 26, 2016
Q1 Earnings Release; Annual General Meeting
February
February 17, 2016 Roadshow Germany (Munich) February 18, 2016 Roadshow UK (Edinburgh) February 19, 2016
Roadshow Switzerland (Zurich)
March
March 9, 2016
Citi West Coast Symposium (San Francisco)
March 18, 2016
Bank of America Merrill Lynch Conference (London)
Internet: | www.siemens.com/investorrelations |
Email: | investorrelations@siemens.com |
IR- Hotline: | +49 89 636-32474 |
Fax: | +49 89 636-32830 |
Investor Relations
Siemens AG issued this content on 2016-01-12 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-12 16:04:08 UTC
Original Document: http://www.siemens.com/investor/pool/en/investor_relations/financial_publications/speeches_and_presentations/160112_coba-conference_presentation.pdf
