Siemens Ltd Results Review 25 November 2010Fig 4 - Segmental SnapshotYear to March Q4FY10 Q3FY10 Q2FY10 FY10 FY09Revenue mix (%)IndustryIndustry Automation 6.4% 6.1% 6.9% 6.5% 5.8%Drive Technologies 11.8% 12.6% 14.5% 13.3% 12.5%Building Technologies 5.5% 5.7% 6.4% 5.6% 5.4%Industry Solutions 10.7% 11.7% 12.5% 11.5% 12.3%Mobility 7.6% 7.1% 11.4% 9.9% 11.0%EnergyFossil power Generation 1.4% 1.0% 1.1% 1.2% 4.5%Oil & Gas 6.6% 6.7% 6.7% 6.8% 6.0%Power Transmission 31.7% 32.8% 23.9% 28.2% 26.5%Power Distribution 10.1% 7.9% 9.4% 9.2% 9.5%Healthcare 8.0% 7.7% 6.8% 7.3% 5.8%Real Estate 0.4% 0.5% 0.5% 0.5% 0.7%Revenue growth (Y-o-Y %)IndustryIndustry Automation 168% 27% -23% 25% -45%Drive Technologies -1% 34% 21% 18% 16%Building Technologies -31% 25% 658% 15% 445%Industry Solutions -21% 25% 23% 3% 1%Mobility -15% -35% 20% -1% 48%EnergyFossil power Generation -73% -66% -66% -69% 225%Oil & Gas 8% 30% 18% 25% 10%Power Transmission 100% 39% -40% 18% -13%Power Distribution 23% 4% 1% 8% 12%Healthcare 37% 69% 37% 39% -10%Real Estate -27% -18% -29% -18% 1%EBIT Margin (%)IndustryIndustry Automation 11.9% 9.3% 4.1% 9.3% 8.6%Drive Technologies 11.3% 2.2% 3.0% 7.9% 6.3%Building Technologies 7.7% 0.8% 3.1% 4.0% 3.8%Industry Solutions 8.7% 12.4% 8.2% 9.2% 9.3%Mobility 8.3% 4.2% 11.1% 8.4% -0.7%EnergyFossil power Generation 21.5% 2.0% 58.2% 30.9% 10.4%Oil & Gas 23.1% 1.2% 8.4% 13.3% 14.4%Power Transmission 15.2% 13.7% 19.8% 17.8% 16.2%Power Distribution 1.3% 6.8% 8.2% 5.6% 7.4%Healthcare 10% 7% 4% 7% 8%Real Estate -92% 80% 75% 81% 129%Source: RCML Research10
Siemens Ltd Results Review 25 November 2010Consolidated financialsProfit and Loss statementY/E March (Rs mn) FY10 FY11E FY12E FY13ERevenues 97,430 117,858 145,510 165,640Growth (%) 4.2 21.0 23.5 13.8EBITDA 13,200 15,086 18,272 20,800Growth (%) 25.5 14.3 21.1 13.8Depreciation & amortisation 1,687 1,926 2,383 2,900EBIT 11,513 13,160 15,889 17,900Growth (%) 31.1 14.3 20.7 12.7InterestOther income 577 683 751 868EBT 12,090 13,842 16,640 18,769Income taxes 4,501 4,568 5,491 6,194Effective tax rate (%) 37.2 33.0 33.0 33.0Extraordinary items - - - -Min into / inc from associates 12 (114) (139) (158)Reported net income 7,578 9,388 11,287 12,733Adjustments - - - -Adjusted net income 7,578 9,388 11,287 12,733Growth (%) 36.7 23.9 20.2 12.8Shares outstanding (mn) 337.2 337.2 337.2 337.2FDEPS (Rs) (adj) 22.5 27.8 33.5 37.8Growth (%) 36.7 23.9 20.2 12.8DPS (Rs) 5.0 5.0 5.0 5.0Cash flow statementY/E March (Rs mn) FY10E FY11E FY12E FY13ENet income + Depreciation 9,265 11,314 13,671 15,633Non-cash adjustments 1,196 - - -Changes in working capital 2,884 (2,646) (2,038) 100Cash flow from operations 13,346 8,668 11,632 15,733Capital expenditure (722) (4,378) (5,436) (5,503)Change in investments (0) - - -Other investing cash flow - - - -Cash flow from investing (722) (4,378) (5,436) (5,503)Issue of equity - - - -Issue/repay debt 2 - - -Dividends paid (11,025) (12,170) (14,461) (12,360)Other financing cash flow 9,468 10,372 12,638 10,517Change in cash & cash eq 11,070 2,492 4,373 8,386Closing cash & cash eq 25,816 28,307 32,680 41,066Economic Value Added (EVA) analysisY/E March FY10E FY11E FY12E FY13EWACC (%) 12.1 12.1 12.1 12.1ROIC (%) 37.3 34.9 34.4 31.7Invested capital (Rs mn) 33,899 41,489 50,953 61,842EVA (Rs mn) 853,494 946,524 1,135,107 1,214,688EVA spread (%) 25.18 22.81 22.28 19.64Balance sheetY/E March (Rs mn) FY10E FY11E FY12E FY13ECash and cash eq 25,816 28,307 32,680 41,066Accounts receivable 37,543 47,941 59,116 67,191Inventories 10,663 13,706 16,925 19,248Other current assets 11,152 13,113 16,455 18,867Investments 0 0 0 0Gross fixed assets 16,721 20,778 25,832 30,882Net fixed assets 9,919 12,371 15,424 18,027CWIP - - - -Intangible assetsDeferred tax assets, net - - - -Other assets (0) (0) (0) (0)Total assets 95,094 115,439 140,600 164,400Accounts payable 50,982 60,867 73,481 84,180Other current liabilitiesProvisions 10,213 13,083 16,166 18,378Debt funds 9 9 9 9Other liabilities 55 57 58 59Equity capital 674 674 674 674Reserves & surplus 33,161 40,749 50,212 61,101Shareholder's funds 33,835 41,423 50,886 61,775Total liabilities 95,094 115,439 140,600 164,400BVPS (Rs) 100.4 122.9 150.9 183.2Financial ratiosY/E March FY10E FY11E FY12E FY13EProfitability & Return ratios (%)EBITDA margin 13.5 12.8 12.6 12.6EBIT margin 11.8 11.2 10.9 10.8Net profit margin 7.8 8.0 7.8 7.7ROE 24.6 24.9 24.5 22.6ROCE 37.3 34.9 34.4 31.7Working Capital & Liquidity ratiosReceivables (days) 138 132 134 139Inventory (days) 55 53 54 56Payables (days) 241 242 235 242Current ratio (x) 1.4 1.4 1.4 1.4Quick ratio (x) 1.2 1.2 1.2 1.2Turnover & Leverage ratios (x)Gross asset turnover 5.8 6.3 6.2 5.8Total asset turnover 3.2 3.1 3.1 2.9Interest coverage ratio 19.9 22.5 24.3 23.2Adjusted debt/equity 0.0 0.0 0.0 0.0Valuation ratios (x)EV/Sales 2.6 2.1 1.7 1.5EV/EBITDA 19.0 16.6 13.7 12.1P/E 35.0 28.3 23.5 20.8P/BV 7.8 6.4 5.2 4.311