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Press Release12 May 2022Siemens AGMunich
Earnings Release Q2 FY 2022
In
the second quarter, Siemens continued its growth path and achieved strong
operational performance. The rise in orders and revenue again reflects the
trust our customers place in us to support digitalization, automation and
sustainability. In an extremely challenging environment, our business continues
to be strong. We
join the international community in condemning the war in Ukraine and are
focused on supporting our people and providing humanitarian aid. Today, we
announced our decision to carry out an orderly process to wind down our
industrial business activities in Russia.
Roland Busch, President and Chief Executive Officer of Siemens AG
With
strong operating results and excellent free cash flow of €1.3 billion, Siemens’
second quarter underlines our execution capabilities and strength, even in the
face of significant headwinds. The now tangible results of our portfolio
optimization and ongoing mitigation of supply chain challenges allow us to look
confidently into the second half of our fiscal year. As a result, we confirm
our outlook.
Ralf P. Thomas, Chief Financial Officer of Siemens AG
Please read the complete Earnings Release and Financial Results:
Earnings Release Q2 FY 2022, January 1 to March 31, 2022: Strong operational performance and growth – Outlook confirmedOutlook
We confirm our financial targets for
fiscal 2022 for the Siemens Group, which are based on continuing growth in
global GDP and our expectation that the challenges to our businesses from
COVID-19 and supply chain constraints will not worsen in the remainder of
fiscal 2022. Under these conditions, we expect our Industrial Business to
continue its profitable growth.
For the Siemens Group we expect 6%
to 8% growth in comparable revenue, net of currency translation and portfolio
effects (previously expected at mid-single-digit), and a book-to-bill ratio
above 1.
Digital Industries expects for
fiscal 2022 to achieve comparable revenue growth of 9% to 12% (previously
expected at 5% to 8%) and a profit margin of 19% to 21%, including an expected
reduction of up to two percentage points from fast ramp-up of the strategic
transition to software as a service (SaaS) in parts of its large software
business.
Smart Infrastructure expects for
fiscal 2022 comparable revenue growth of 6% to 9% (previously expected at 5% to
8%). The profit margin is expected to be 12% to 13%.
Mobility, which previously expected
fiscal 2022 comparable revenue growth of 5% to 8%, now expects revenue on the
prior-year level. The profit margin is expected to be 10.0% to 10.5%, with the
expected gain from the sale of Yunex Traffic being sufficient to balance impacts
related to the sanctions imposed on Russia.
We continue to expect the profitable
growth of our Industrial Business to drive an increase in basic EPS from net
income before purchase price allocation accounting (EPS pre PPA) to a range of
€8.70 to €9.10, up from €8.32 in fiscal 2021. Net income in fiscal 2021
included a positive contribution from divestments and other portfolio-related
gains totaling €1.5 billion. We assume a similar positive contribution in
fiscal 2022 from portfolio-related results net of burdens related to Russia.
Portfolio-related results include the sales of Yunex Traffic, the mail and
parcel-handling business of Siemens Logistics and our stake in Valeo Siemens
eAutomotive.
This outlook excludes burdens from
legal and regulatory matters.
Press Event
@siemens_press
Notes and forward-looking statements
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 prospectuses, 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 Report on expected developments and associated material opportunities and risks in the Combined Management Report of the Siemens Report ( www.siemens.com/siemensreport), and in the Interim Group Management Report of the Half-year Financial Report (provided that it is already available for the current reporting year), which should be read in conjunction with the Combined Management Report. Should one or more of these risks or uncertainties materialize, should decisions, assessments or requirements of regulatory authorities deviate from our expectations, should events of force majeure, such as pandemics, unrest or acts of war, occur or should underlying expectations including future events occur at a later date or not at all 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 the applicable financial reporting framework not clearly defined – supplemental financial measures that are or may be alternative performance measures (non-GAAP-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 the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance 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.
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 prospectuses, 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 Report on expected developments and associated material opportunities and risks in the Combined Management Report of the Siemens Report ( www.siemens.com/siemensreport), and in the Interim Group Management Report of the Half-year Financial Report (provided that it is already available for the current reporting year), which should be read in conjunction with the Combined Management Report. Should one or more of these risks or uncertainties materialize, should decisions, assessments or requirements of regulatory authorities deviate from our expectations, should events of force majeure, such as pandemics, unrest or acts of war, occur or should underlying expectations including future events occur at a later date or not at all 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 the applicable financial reporting framework not clearly defined – supplemental financial measures that are or may be alternative performance measures (non-GAAP-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 the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance 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.