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- Long-term “BBB” issuer rating,
outlook stable
- S&P praises low indebtedness and
extensive liquidity
- First listing for Siemens Energy still
planned for September 28, 2020
In its first
credit rating, Siemens Energy AG, which will soon be operating as an
independent entity, has earned a solid investment grade rating from the S&P
Global rating agency (S&P). The company received a long-term issuer rating
of “BBB” with a stable outlook. The raters particularly praised the company’s
broad base in the energy sector, its low level of debt, and its extensive
liquidity.
- Global partnership to being extended for another three years
- Cooperation involves FC Bayern’s soccer and basketball sections
- Strong focus on sustainability and digital solutions in infrastructure
After three
successful seasons, Siemens and FC Bayern Munich have extended their collaboration
for three more years. The global technology powerhouse and the sport club with
the most championship titles in German soccer are lengthening their “Performance
Partnership” until the end of the 2022/23 season. The focus will remain on
future-oriented solutions and innovative technologies as well as on infrastructure-related
digital products and solutions.
- Siemens again secures very
favorable financing conditions
- High investor demand
underscores excellent reputation on capital market
Siemens has
issued new bonds with a total value of about €4 billion, including a
tranche of £450 million (about €500 million). The transaction closed
successfully today. The proceeds of the issuance will be used for general
corporate purposes. At roughly €16 billion, investor demand was almost four
times the issue volume.
The information contained herein is not for
publication or distribution, directly or indirectly, in or into Australia or
any other jurisdiction where to do so would be prohibited by applicable law.
- Siemens AG to spin off 55 percent of Siemens Energy to Siemens shareholders
- Plans call for further reducing Siemens’ stake significantly within 12 to 18 months after spin-off’s effective date
- Siemens AG contractually obligated to ensure Siemens Energy’s autonomy and independence
- Siemens Energy to have strong capital and liquidity base; solid investment-grade rating targeted
- Initial listing of new shares planned for September 28, 2020
Siemens AG has today published key details of the spin-off of its energy business, together with the invitation to the Extraordinary Shareholders’ Meeting on July 9, 2020. Issuance of the spin-off report marks another key milestone in the creation of an independent, world-leading energy pure play. Siemens shareholders are to automatically receive one share of Siemens Energy AG for every two shares of Siemens AG. Fifty-five percent of Siemens Energy will be spun off to Siemens shareholders. Depending on the strategic and operational development of the two companies, Siemens AG intends to further reduce its stake in Siemens Energy significantly within 12 to 18 months. In addition, Siemens has placed itself under a contractual obligation to refrain from exercising a controlling influence over the new company in the future. Subject to approval by the Extraordinary Shareholders’ Meeting, plans call for the spin-off to take place, as announced, by the end of September 2020. The initial listing is to take place on September 28th, 2020.
We released our second quarter results for fiscal year 2020 on May 8, 2020. The Press Conference Call and the Analyst Call were broadcast live.
- Revenue was €14.2 billion, nearly level with the same quarter a year ago, as increases at Siemens Healthineers and Mobility offset a decline at Digital Industries; orders declined 8%, to €15.1 billion, on sharply lower volume from large orders at Mobility
- On a comparable basis, excluding currency translation and portfolio effects, revenue declined 1% and orders came in 9% lower; the book-to-bill ratio of 1.06 remained well above one
- Adjusted EBITA Industrial Businesses was significantly lower at €1.6 billion, with all industrial businesses showing effects from the COVID-19 pandemic; Adjusted EBITA margin Industrial Businesses of 12.1% was held back also by severance charges of €0.2 billion, taking 1.2 percentage points
- Net income, including a loss of €0.3 billion from discontinued operations, was €0.7 billion compared to €1.9 billion in Q2 FY 2019, which benefited from income of €0.2 billion from discontinued operations as well as a lower tax rate; basic earnings per share (EPS) declined to €0.80
- Given the current situation, we can no longer confirm our original guidance for fiscal 2020; for our new guidance, see page 5 of this document
At the end of the second quarter of fiscal 2020, Gas and Power and Siemens Gamesa Renewable Energy (SGRE) were classified as held for disposal and discontinued operations. Prior-period amounts are presented on a comparable basis.
- Revenue stable, orders below prior-year level
- Order backlog at €69 billion, further €81 billion at Siemens Energy
- Outlook relativized due to COVID-19
- Timeline for spin-off of energy business confirmed
- Share buyback on hold due to spin-off
- Spin-off of Flender planned
Despite the clear
impact of the COVID-19 pandemic, Siemens AG performed solidly in the second
quarter of fiscal 2020. Revenue remained nearly unchanged, while net income
declined to €697 million compared to the strong prior-year quarter. Orders were
down primarily due to a lower volume from major orders at Siemens Mobility
year-over-year. In view of the current situation, Siemens will no longer
confirm its original guidance for fiscal 2020. Nonetheless, the company sees
itself well positioned both operationally and strategically for the coming
quarters. Implementation of Siemens’ Vision 2020+ strategy is right on track,
and the company is making faster progress than expected in achieving its cost
targets.
- Siemens Managing Board decides to form worldwide aid fund to help relieve
and combat the coronavirus pandemic
- Siemens to match all funds donated
by employees
- Fund to supplement numerous aid
programs already in place at international Siemens units
- Company and employees aim to help people stricken by the COVID-19 pandemic worldwide
- Entire Managing Board joins in donation campaign
- President and CEO lays foundation by donating €1 million
Effective immediately, the Managing Board of Siemens AG has decided to set up a COVID-19 aid fund. Under the auspices of the community-serving nonprofit organization Siemens Caring Hands e.V. (“Caring Hands”), this aid fund is to provide support, without red tape, to relief organizations and medical facilities as well as to individuals impacted by the COVID-19 crisis worldwide.
- Charter of Trust companies are helping with cybersecurity for telework
- Some 130,000 Siemens employees worldwide are working from home due to
the corona crisis
To slow the spread of the coronavirus, millions of people around the world have been working from home for about three weeks now – including more than 100,000 Siemens employees. Siemens and 16 other global companies from the Charter of Trust (CoT) initiative have developed eight tips for boosting cybersecurity so that employees can work just as securely from home as they do at the office. Their recommendations are meant to help ward off hacker attacks and enable companies to maintain business continuity. These tips range from switching off voice-controlled devices and covering webcams to not mixing personal and business use of devices. All recommendations have been published on the Charter of Trust website: bit.ly/39BB8Gv.