Earnings Release and Financial Results Q4 FY 2021 for Siemens: Stellar performance and successful start as a focused technology company

Nov 15, 2021

• Orders climbed 26% to €19.1 billion, driven by double-digit growth in all industrial businesses, and revenue rose 18%, to €17.4 billion, for a book-to-bill ratio of 1.09

• Orders increased 16% and revenue rose 10% on a comparable basis excluding currency translation and portfolio effects, primarily the acquisition of Varian Medical Systems, Inc. between the periods under review

• Adjusted EBITA Industrial Businesses was €2.3 billion, and Adjusted EBITA margin Industrial Businesses was 13.8%

• Net income was €1.3 billion and basic earnings per share (EPS) were €1.45; a year earlier, net income of €1.9 billion included €0.8 billion in income from discontinued operations resulting mainly from the spin-off of Siemens Energy

• Outstanding Free cash flow from continuing and discontinued operations, totaling €3.8 billion for the quarter

• For the full fiscal year 2021 orders were €71.4 billion and revenue was €62.3 billion, for a book-to-bill-ratio of 1.15; strong comparable revenue growth of 11.5% met our guidance which we raised most recently after the third quarter, while net income of €6.7 billion clearly exceeded expectations; Free cash flow for the full year reached a record high at €8.2 billion

• Siemens proposes to increase the dividend from €3.50 a year earlier to €4.00 per share, reflecting our stellar performance in fiscal 2021 and our great confidence in the future development of the company

Outlook

Our outlook for fiscal 2022 is based on continuing healthy growth in global GDP, albeit with slowing momentum, and our expectation that the challenges to our businesses from COVID-19 and supply chain constraints will ease during fiscal 2022. With these conditions and given our very strong fiscal year 2021, we expect our industrial businesses to continue their profitable growth.

For the Siemens group we expect 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% to 8% and a profit margin of 19% to 21%, 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% to 8%. The profit margin is expected to be 12% to 13%.

Mobility expects for fiscal 2022 comparable revenue growth of 5% to 8%. The profit margin is expected to be 10.0% to 10.5%.

We expect this profitable growth of our 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. We assume that rigorous execution of our portfolio optimization strategy will contribute similarly as in fiscal 2021, when we generated €1.5 billion in net income from the sale of our Flender business, divestment of our stakes in Bentley Systems, Inc. and ChargePoint Holdings, Inc., and revaluation of our stake in Thoughtworks Holding, Inc.

This outlook excludes burdens from legal and regulatory matters.

Please read the complete Earnings Release and Financial Results:

Earnings Release Q4 FY 2021 July 1 to September 30, 2021: Stellar performance and successful start as a focused technology company

Financial Publications are available for download at: www.siemens.com/ir

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. 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.”

Roland Busch, President and Chief Executive Officer of Siemens AG

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. “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.”

Ralf P. Thomas, Chief Financial Officer of Siemens AG

Source: https://press.siemens.com/global/en/pressrelease/earnings-release-and-financial-results-q4-fy-2021