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Press Release11 November 2021Siemens AGMunich
Stellar performance and successful start as a focused technology company
Siemens benefited from a considerable economic
recovery and continuing growth, particularly in key markets such as automotive,
machine building and electronics as well as in most infrastructure-related
sectors.
Siemens’ Supervisory and Managing Boards propose
to increase the dividend from €3.50 a year earlier to €4.00, reflecting our
stellar performance in fiscal 2021 and our great confidence in the future
development of the company.
“We achieved a very successful start as
a focused technology company. In a challenging environment, we have won market
share and clearly exceeded our net income guidance,” said Roland Busch,
President and Chief Executive Officer of Siemens AG. “This momentum will
continue in fiscal 2022. We’re ideally positioned to support our customers and benefit
from the major growth drivers of digitalization and sustainability. We have the
right strategy and – above all – the best team. I’m personally very grateful
for the outstanding dedication of our team worldwide.”
“With a record-setting free cash flow,
strong revenue growth and high profitability at the same time, we once again
demonstrated the performance capabilities and resilience of Siemens,” added
Ralf P. Thomas, Chief Financial Officer of Siemens AG. “Our shareholders also benefit
from this successful performance. With a very attractive dividend, a strong
stock price development and our new share buyback program, we continue to offer
a highly attractive total shareholder return.”
Net income considerably increased – Free cash flow at record level
In
fiscal 2021, Siemens increased revenue on a comparable basis by 11.5 percent
to €62.3 billion (fiscal 2020: €55.3 billion). Orders rose a substantial 21 percent
to €71.4 billion (fiscal 2020: €58.0 billion).
Adjusted
EBITA Industrial Businesses climbed 17 percent to €8.8 billion. Adjusted
EBITA margin Industrial Businesses totaled 15.0 percent (fiscal 2020:
14.3 percent). Net income soared 59 percent to €6.7 billion (fiscal 2020:
€4.2 billion), thus exceeding the net income guidance. Siemens has raised
its outlook for fiscal 2021 four times (net income most recently forecast
at €6.1 billion to €6.4 billion). Basic earnings per share for net income
totaled €7.68 (fiscal 2020: €5.00).
At €8.2 billion,
free cash flow (from continuing and discontinued operations) set a new record
(fiscal 2020: €6.4 billion), while free cash flow for the Industrial
Businesses also set a new record of €9.8 billion, a substantial increase of
about 38 percent year-over-year (fiscal 2020: €7.1 billion).
The
book-to-bill ratio was 1.15, an outstanding level.
Q4 – A strong finish to the fiscal year
Siemens fully leveraged its growth opportunities in many key markets in a
continuing complex macroeconomic environment also in Q4 2021. In Q4, the
company successfully mitigated ongoing supply chain challenges associated above
all with electronic components and raw materials. At €19.1 billion (Q4 2020:
€15.1 billion), orders in Q4 2021 continued to be very strong, with gains
at all Industrial Businesses and in all reporting regions, led by Digital Industries
and Mobility. Revenue was also up, rising 10 percent on a comparable basis
to €17.4 billion (Q4 2020: €14.8 billion). This increase was
primarily attributable to double-digit growth at Digital Industries and Siemens Healthineers.
At 1.09, the book-to-bill ratio was still considerably above 1.
Adjusted
EBITA Industrial Businesses totaled €2.3 billion (Q4 2020: €2.6 billion).
In the prior-year quarter, Adjusted EBITA benefited from a €0.5 billion
positive effect related to a stake in Bentley Systems, Inc. In addition, Smart Infrastructure
recorded a €0.2 billion gain in the prior-year quarter from the sale of a
business. In Q4 2021, Siemens achieved a solid profit margin of 13.8 percent
(Adjusted EBITA margin). Adjusted for the two abovementioned effects, the
profit margin was stable year-over-year.
Net income (from
continuing operations) rose 22 percent to €1.3 billion (Q4 2020:
€1.0 billion). However, sharply lower income from discontinued operations
compared to Q4 2020 had a negative impact. A gain from the Siemens Energy
spin-off was reported in Q4 2020. As a result, net income totaled €1.3 billion
(Q4 2020: €1.9 billion).
At €3.8 billion,
free cash flow (from continuing and discontinued operations) was again at an
outstanding level (Q4 2020: €3.8 billion), while free cash flow from the
Industrial Businesses rose to €3.8 billion, a substantial increase of
around 21 percent (Q4 2020: €3.1 billion).
Outlook for fiscal 2022
Siemens’ outlook for fiscal 2022 is based on
continuing healthy growth in global GDP, albeit with slowing momentum, and the
expectation that the challenges to its businesses from COVID-19 and supply
chain constraints will ease during fiscal 2022. With these conditions and
given Siemens’ very strong fiscal year 2021, the company expects its Industrial
Businesses to continue their profitable growth.
For the Siemens Group, the company expects
mid-single-digit comparable revenue growth, net of currency translation and
portfolio effects, and a book-to-bill ratio above 1.
Digital Industries expects for fiscal 2022 to achieve comparable revenue growth of 5 percent
to 8 percent and a profit margin of 19 percent to 21 percent,
including known headwinds of up to two percentage points associated with
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 5 percent
to 8 percent. The profit margin is expected to be 12 percent to 13 percent.
Mobility
expects for fiscal 2022 comparable revenue growth of 5 percent to 8 percent. The
profit margin is expected to be 10.0 percent to 10.5 percent.
Siemens expects this profitable growth of its Industrial
Businesses 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. Siemens assumes that rigorous
execution of its portfolio optimization strategy will contribute similarly as
in fiscal 2021, when the company generated €1.5 billion in net income
from the sale of its Flender business, divestment of its stakes in Bentley Systems,
Inc., and ChargePoint Holdings, Inc., and revaluation of its stake in
Thoughtworks Holding, Inc.
This outlook excludes burdens from legal and
regulatory matters.
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Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 170 years. Active around the world, the company focuses on intelligent infrastructure for buildings and distributed energy systems and on automation and digitalization in the process and manufacturing industries. Siemens brings together the digital and real worlds to benefit customers and society. Through Mobility, a leading supplier of intelligent mobility solutions for rail and road transport, Siemens is helping to shape the world market for passenger and freight services. Via its majority stake in the publicly listed company Siemens Healthineers, Siemens is also a world-leading supplier of medical technology and digital health services. In addition, Siemens holds a minority stake in Siemens Energy, a global leader in the transmission and generation of electrical power that has been listed on the stock exchange since September 28, 2020.
In fiscal 2021, which ended on September 30, 2021, the Siemens Group generated revenue of €62.3 billion and net income of €6.7 billion. As of September 30, 2021, the company had around 303,000 employees worldwide. Further information is available on the Internet at www.siemens.com.
In fiscal 2021, which ended on September 30, 2021, the Siemens Group generated revenue of €62.3 billion and net income of €6.7 billion. As of September 30, 2021, the company had around 303,000 employees worldwide. Further information is available on the Internet at www.siemens.com.
Disclaimer
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 of the Annual Report, and in the Half-year Financial Report, which should be read in conjunction with the Annual Report. Should one or more of these risks or uncertainties materialize, events of force majeure, such as pandemics, 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.
All information is preliminary.
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 of the Annual Report, and in the Half-year Financial Report, which should be read in conjunction with the Annual Report. Should one or more of these risks or uncertainties materialize, events of force majeure, such as pandemics, 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.
All information is preliminary.
Reference Number: HQCOPR202111106335EN
Contact
Florian Martens
Siemens AG
Werner-von-Siemens-Straße 1
80333 Munich
Germany
80333 Munich
Germany
+49 162 230-6627
Simon Friedle
Siemens AG
Werner-von-Siemens-Straße 1
80333 Munich
Germany
80333 Munich
Germany
+49 1525 2159076
Daniela Markovic
Siemens AG
Werner-von-Siemens-Straße 1
80333 Munich
Germany
80333 Munich
Germany
+49 172 699-8785