Siemens Ltd. H1 FY 2021 | Analyst Call - Sunil Mathur, Managing Director and CEO Daniel Spindler, Executive Director and CFO
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Siemens Ltd. H1 FY 2021 | Analyst Call Sunil Mathur, Managing Director and CEO Daniel Spindler, Executive Director and CFO 1st June 2021 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst Call
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Page 2 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst Call
Agenda Business highlights Financial highlights Outlook Page 3
India’s 2nd Covid-19 wave will have an impact on recovering economy Macroeconomic overview Business operations • Indian economy had started to rebound | Improvement was • Opportunity pipeline stays healthy – no project cancellations seen across most high frequency indicators so far, some finalization delays • Localized lockdowns impacting supply chains | Government • Business continuity maintained – Factories and project sites spending slows largely operational | White-collar employees WFH • Difficult to estimate at this point impact of 2nd wave on the • Focus on Health and Safety – Proactive Interventions started | Indian economy Scarce medical resources arranged • Shortage of semiconductors and rising global commodity • C&S Electric acquisition completed on 1st Mar'21 | Focus on prices impacting costs addressing local demand and creating an export hub Page 4 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst Call
Highlights of major orders won in H1 FY 2021
1)
STATCOM 400/220kV at Bikaner II 16.3 MW WHR in Cement plant Rayalaseema Lift Irrigation
Quality power evacuation from 8GW Solar Promotes Decarbonization, EPC integration VSI 2) based drives lifting water to height
Energy Zones in Rajasthan for Turbine and Distributed Controls of ~40 meters
Eastern Dedicated Freight Corridor Tariff Based Competitive Bidding project New Parliament Building project
High-end communication and signaling 400/220kV GIS substation in Gujarat and Power distribution, Fire safety, Building
technology for 402 km section 132kV AIS substation in Assam mgmt., Video surveillance and Access control
1) Waste Heat Recovery 2) Voltage Source Inverter
Page 5 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst Call
Strong focus on technology leadership to strengthen market position Partnership with Ola Electric for Signed MoU with Switch Mobility Strengthened competitiveness via world's largest E-Vehicle facility for E-Mobility solutions localization of Vacuum Interrupter Industry 4.0 roadmap and "Factory of Charging infrastructure technology and Enhanced Medium Voltage Switchgear Future" concept for world's largest software by Siemens; Adopting new competitiveness by localizing the greenfield electric scooters manufacturing business model – eMaaS (eMobility-as-a- production of key component – Vacuum facility (Capacity of 2 – 5 Mn units/year) Service) Interrupter Page 6 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst Call
Replicable and Scalable digitalization successes – ready to support India Inc. Select digitalization successes Paints – OT Cyber Security F&B – Value chain digitalization Pharma – API process simulation Industrial anomaly and continuous threat 5% throughput uplift, 7% reduction in production Reduction in time to market by modelling and detection as holistic cybersecurity solution cost per MT with digitally integrated operations simulating APIs using Siemens' gPROMS solution Buildings – Smart Lighting Manufacturing – Layout Optimization Industries – Remote Power Management Improved energy efficiency by IOT and cloud Achieved 30% space reduction, 10% operational Enhanced OEE2) by Siemens' Power Manager based smart lighting solution efficiency by modelling & simulation solutions solution for remote energy monitoring 1) End to End 2) Overall Equipment Effectiveness Page 7 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst Call
Agenda Business highlights Financial highlights Outlook Page 8
Strong business performance continues in Q2 FY 21
1)
(Continuing Operations)
New Orders Revenue Profit from
(y-o-y) (y-o-y)
Operations (% of revenue)
+16.9% +29.6% +11.6%
Profit before Tax Profit after Tax Earnings per Share
(% of revenue) (% of revenue) (in INR)
+13.1% +9.6% 8.87
1) Continuing Operations without Mechanical Drives business
Page 9 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst Call
Strong half-year performance in FY 21 across all businesses drives profitable growth
1)
(Continuing Operations)
New Orders Revenue Profit from
(y-o-y) (y-o-y)
Operations (% of revenue)
+13.0% +22.9% +11.1%
Profit before Tax Profit after Tax Cash from
(% of revenue) (% of revenue)
Operations (in billion INR)
+12.8% +9.4% 9.4
1) Continuing Operations without Mechanical Drives business
Page 10 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst CallDouble-digit order growth in Q2 FY 21
1)
(Continuing Operations) figures in billion INR
% y-o-y development
+8.7% +9.3% +16.9%
+11.9% -19.0% -7.4%
-17.8%
New Orders:
• Ongoing recovery in key
markets with strength in
-39.0% short cycles
29.6 32.2 32.1 33.1 • Strong order backlog
29.0 29.3 28.3
maintained
17.7
• Growth in projects backed
by short-cycle business
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY 19 FY 19 FY 20 FY 20 FY 20 FY 20 FY 21 FY 21
Lockdown
Apr - Sep Oct - Sep Oct - Mar
1) Continuing Operations without Mechanical Drives business
Page 11 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst CallStrong revenue growth continues through H1 FY 21
1)
(Continuing Operations) figures in billion INR
% y-o-y development
+2.5%
-9.2% +29.6%
+2.0% +15.9% Revenue:
-6.5% -23.1%
• Stringent order
backlog execution
37.7 -60.8% 34.2 33.0 • Book-to-bill trends
29.3 25.4 28.6
24.7 towards growth: 1.06
11.5 • Broad based growth
across businesses
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY 19 FY 19 FY 20 FY 20 FY 20 FY 20 FY 21 FY 21
Lockdown
Apr - Sep Oct - Sep Oct - Mar
1) Continuing Operations without Mechanical Drives business
Page 12 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst CallConsistent profitability above 10% over last three quarters
1)
(Continuing Operations) figures in billion INR
% y-o-y development
Profit from Operations:
+10.0% +11.4% +11.6%
+10.9% • Stringent conversion on
+10.5% strong revenue growth
+10.7%
despite pandemic restraints
+3.8 +6.0% +3.9 +3.8 • Bundle of cost control
+3.2 +3.0 measures, discretionary
+2.6
+1.5 spending on low level
-5.9% • FX and commodity gains
-0.7
• Headwinds from supply
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 chain disruptions (e.g.
FY 19 FY 19 FY 20 FY 20 FY 20 FY 20 FY 21 FY 21 semiconductors), higher
logistics costs, lower export
Lockdown incentives
Apr - Sep Oct - Sep Oct - Mar
1) Continuing Operations without Mechanical Drives business
Page 13 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst CallBusiness portfolio mix
1)
(Continuing Operations)
% of revenue
Sales Mix Export & Domestic Government & Private
Project Export Government
Product Domestic Private
20.4% 21.8% 23.1% 17.1%
35.5% 32.2%
79.6% 78.2% 76.9% 82.9%
64.5% 67.8%
H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21
• Growth in short-cycle product • Marginal increase in export • Growth primarily with
business (SI/ DI) business private customers
1) Continuing Operations without Mechanical Drives business
Page 14 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst CallEnergy (SE):
Continuing strength in Energy business with substantial improvement in profit
figures in billion INR
New Orders Revenue Profit from Operations (% of rev.)
+8% +16%
+65%
21.4 23.1 21.7
18.7 3.1
1.9
+14.2%
+10.0%
H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21
• Growth contribution from • Execution of strong order • Solid operational execution
generation and service backlog • FX and commodity gains in H1
business • Growth compared to FY 21
• Major orders from private and H1 FY 20 also due to lower
government customers base effect
Page 15 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst CallSmart Infrastructure (SI):
Top line returning to pre-Covid levels with underlying margin increases
figures in billion INR
New Orders Revenue Profit from Operations (% of rev.)
+1%
+30% +110%
19.4 19.6 18.4 1.6
14.2
0.8
+8.8%
+5.4%
H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21
• Robust growth in base • Strong growth in Digital Grid, • Profitability returned to pre-
business Distribution Systems and Covid levels
• Higher base due to major Electrical Products • Cost control measures lead to
order in H1 FY 20 sustainable savings
• Products and systems up
Page 16 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst CallDigital Industries (DI):
Broad-based volume surge across main verticals
figures in billion INR
New Orders Revenue Profit from Operations (% of rev.)
+36% +38% +67%
15.4 15.0 1.5
11.3 10.9 0.9
+9.9%
+8.2%
H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21
• High customer demand • Growth results from higher • Cost control measures
(mainly in first quarter) customer offtake • Productivity gains out of strong
• Pharma, F&B, intralogistics, • Revenue growth from higher growth momentum
machine tools growing order intake in H1 FY 21
Page 17 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst CallMobility (MO):
Solid performance however revenue decline due to lower demand
figures in billion INR
New Orders Revenue Profit from Operations (% of rev.)
+10% -6% -20%
3.8 4.1 4.5 4.2 0.5
0.4
+11.4% +9.7%
H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21 H1 FY 20 H1 FY 21
• Major order in H1 FY 21 • Lower demand in passenger • Profit margins affected by
• Pandemic related shifts in key locomotive components unfavorable revenue mix
tenders/ bids • Rail infrastructure with positive • Structural improvements
momentum ongoing
Page 18 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst CallMaintain focus.
Focus areas
• Drive profitable growth
• Operational efficiency
• Maintain strong cash conversion
• Closing of C&S transactionAgenda Business highlights Financial highlights Outlook Page 20
Public and private sector CAPEX drivers continue to be in place
Select sectors outlook
Energy (SE) Infrastructure (SI)
WHR1) driving demand in Growth in Data Centers,
Generation ➔ select industries Buildings ➔ Hospitals, E-commerce
TBCB/GEC2) tenders being FAME3) program providing
Transmission finalized | AIS to GIS conversions
E-Charging demand boost
Industries (DI) Mobility (MO)
PLI4) and Scrappage policy to New DFCs5) addition and
Auto ➔ provide thrust in medium/long term Railways 100% electrification target
Increasing industry focus on
Pharma automation and digitalization
Metro Central boost for Metro rail
1) Waste Heat Recovery 2) Green Energy Corridor 3) Faster Adoption and Manufacturing of Electric Vehicles 4) Production Linked Incentive 5) Dedicated Freight Corridor
Page 21 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst Call ➔ Trend for next 2/3 quartersSiemens continues to perform in evolving Covid-19 situation
1 Impact of pandemic on economy difficult to estimate at this point
2 Public and private capex drivers in place – Finalization of projects may be delayed
3 Continued thrust on technology leadership to strengthen market position
4 Focus on Profitable growth | Health and Safety of employees first!
Page 22 Unrestricted | © Siemens 2021 | 2021-06-01 | H1 FY 2021 Analyst CallThank you
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