Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Germany
  4. Xetra
  5. Siemens AG
  6. News
  7. Summary
    SIE   DE0007236101

SIEMENS AG

(SIE)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Siemens : Q2 FY21 Earnings Release and Financial Results

05/07/2021 | 01:05am EDT

Earnings Release

Q2 FY 2021

JANUARY 1 TO MARCH 31, 2021

Munich, Germany, May 7, 2021

Excellent results across all businesses -

Guidance raised again

"As our order intake and revenue in the second quarter impressively demonstrate, our customers place great trust in us. We support them with their digital transformation, which enables them to become faster, more efficient and more sustainable," said Roland Busch, President and Chief Executive Officer of Siemens AG. "I'm extremely pleased that all our businesses are delivering excellent results and that we're growing profitably - despite continuing uncertainties. My thanks go to all the people at Siemens worldwide for their dedication and for always embracing a growth mindset."

"The second quarter once again underscores Siemens' performance capabilities and reliability, especially under challenging conditions, which was reflected in all key financial figures. Growth momentum came, in particular, from the automotive industry, machine building, our software business and - from a geographic perspective - from China. Besides the gratifying margin developments at our Industrial Businesses, our successful portfolio management also paid off. In addition, Siemens has once again achieved excellent cash flow. On this basis, we are even more confident about the second half of our fiscal year and are raising our guidance significantly for both our Industrial Businesses and net income," said Ralf P. Thomas, Chief Financial Officer of Siemens AG.

  • Orders climbed 11% on a comparable basis, excluding currency translation and portfolio effects, and revenue rose 9%
  • On a nominal basis, orders increased 8% to €15.9 billion, driven by double-digit growth in Siemens Healthineers, and revenue rose 6%, to €14.7 billion, on growth in all industrial businesses; the book-to-bill ratio was 1.08
  • Adjusted EBITA Industrial Businesses was €2.1 billion, a 31% increase on strong performances in all Industrial Businesses, resulting in Adjusted EBITA margin Industrial Businesses of 15.1%
  • Net income and basic earnings per share (EPS) were sharply higher, at €2.4 billion and €2.82, respectively, on higher Adjusted EBITA Industrial Businesses, a €0.9 billion gain on the sale of Flender GmbH (Flender) within discontinued operations, and favorable effects outside Industrial Businesses; in Q2 FY 2020 net income of €0.7 billion and basic EPS of €0.80 included a loss of €0.3 billion from discontinued operations
  • Excellent Free cash flow from continuing and discontinued operations of €1.2 billion (Q2 FY 2020: €0.1 billion), including increases in all industrial businesses

Earnings Release Q2 FY 2021 | Siemens

Siemens

Q2

% Change

(in millions of €)

FY 2021

FY 2020

Actual

Comp.

Orders

15,879

14,664

8%

11%

Revenue

14,665

13,784

6%

9%

Adjusted EBITA

Industrial Businesses

2,088

1,592

31%

therein: severance

(129)

(160)

Adjusted EBITA margin

Industrial Businesses

15.1%

12.1%

excl. severance

16.0%

13.3%

Income from continuing

operations

1,516

992

53%

therein: severance

(215)

(189)

Income (loss) from

discontinued operations,

net of income taxes

874

(295)

n/a

Net income

2,390

697

>200%

Basic earnings per share

(in €)

2.82

0.80

>200%

Free cash flow

(continuing operations)

1,326

685

93%

Free cash flow

(discontinued operations)

(111)

(551)

80%

Free cash flow

(continuing and

discontinued operations)

1,215

134

>200%

ROCE

(continuing and

discontinued operations)

21.2%

5.0%

  • Continuing complex macroeconomic environment influenced by the coronavirus pandemic (COVID-19);pent-up demand and growth opportunities during the quarter that varied by business and geographic region, including strong growth in China compared to Q2 FY 2020 when pandemic restrictions were first initiated
  • Significant currency translation effects took four percentage points each from order and revenue growth year-over-year; portfolio effects added one percentage point each
  • Strong order intake on a comparable basis, driven by double-digit growth in Siemens Healthineers and Smart Infrastructure
  • Revenue up in all four industrial businesses on a comparable basis, led by double-digit growth in Digital Industries and Siemens Healthineers
  • Adjusted EBITA Industrial Businesses rose substantially with Smart Infrastructure more than doubling its Adjusted EBITA and Digital Industries and Siemens Healthineers posting double-digit increases; Mobility kept profitability close to the strong prior-year level; Adjusted EBITA Industrial Businesses benefited from expense reductions year-over-year due to COVID-19 restrictions, such as lower travel and marketing expenses, which are expected to diminish in coming quarters
  • Outside Industrial Businesses, positive swing in Corporate items primarily from a €0.2 billion gain in connection with the transfer of Siemens' stake in ChargePoint Holdings, Inc. (ChargePoint) to Siemens Pension-Trust e.V. and a higher earnings contribution from Siemens Financial Services
  • Net income rose sharply on substantially higher Adjusted EBITA Industrial Businesses and a positive contribution from discontinued operations, mainly related to a €0.9 billion gain from the sale of Flender; the loss from discontinued operations in Q2 FY 2020 was mainly related to the former energy business
  • Industrial Businesses generated outstanding second-quarter Free cash flow of €2.1 billion, up from €1.1 billion in Q2 FY 2020, with improvements in all industrial businesses resulting in a cash conversion rate of 1.03; this sharp increase was partly offset by substantially higher tax payments, which were €1.2 billion, outside of Free cash flow from Industrial Businesses; Free cash flow from discontinued operations improved compared to Q2 FY 2020, when significant cash outflows were recorded mainly from Siemens Energy
  • Consideration for the sale of Flender amounted to €1.8 billion net of cash disposed; cash inflows included €1.6 billion in Q2 FY 2021, with proceeds of €0.2 billion to follow in Q3 FY 2021; payments are not part of Free cash flow
  • Provisions for pensions and similar obligations as of March 31, 2021: €3.3 billion (December 31, 2020: €5.0 billion): decreased mainly due to higher discount rate assumptions and to contributions of financial assets, including the stake in ChargePoint, to Siemens Pension Trust e.V., to strengthen Siemens' pension assets for the post-employment benefits of employees
  • ROCE increased on a combination of sharply higher net income and a substantial decrease in average capital employed; the gain from the sale of Flender added 7.5 percentage points to ROCE

2

Earnings Release Q2 FY 2021 | Digital Industries, Smart Infrastructure, Mobility

Digital Industries

Q2

% Change

(in millions of €)

FY 2021

FY 2020

Actual

Comp.

Orders

4,321

4,171

4%

8%

Revenue

4,031

3,684

9%

14%

therein: software business

1,086

1,032

5%

11%

Adjusted EBITA

811

585

39%

therein: severance

(80)

(36)

Adjusted EBITA margin

20.1%

15.9%

excl. severance

22.1%

16.9%

  • Strong volume development despite substantial negative currency translation effects
  • Order growth driven by double-digit growth in the short-cycle businesses on continued recovery in their most important customer industries such as automotive and machine building
  • Revenue rose in all businesses with the strongest contribution coming from the short-cycle businesses
  • On a geographic basis, volume grew in all reporting regions, with the highest increases coming from the Asia, Australia region, driven by China
  • Adjusted EBITA higher in all businesses, with particularly strong increases in the electronic design automation (EDA) software business and the short-cycle businesses on higher revenue as well as expense reductions due to COVID-19 restrictions and prior cost structure improvements; ongoing cost structure improvement resulted in sharply higher severance charges year-over-year

Smart Infrastructure

Q2

% Change

(in millions of €)

FY 2021

FY 2020

Actual

Comp.

Orders

4,001

3,796

5%

10%

Revenue

3,562

3,517

1%

6%

therein: products business

1,384

1,296

7%

13%

Adjusted EBITA

390

185

111%

therein: severance

(20)

(103)

Adjusted EBITA margin

11.0%

5.2%

excl. severance

11.5%

8.2%

  • Volume development substantially impacted by negative currency translation effects
  • Orders rose in all businesses with the strongest growth coming from the systems and software business and the products business
  • Revenue growth was driven mainly by the products business due partly to a recovery in short-cycle markets
  • On a geographic basis, volume growth was led by the Asia, Australia region including particularly strong contributions from China
  • Adjusted EBITA and profitability rose in all businesses, due largely to sharply lower severance charges, higher capacity utilization, cost savings related to prior execution of the competitiveness program and expense reductions related to COVID-19 restrictions

Mobility

Q2

% Change

(in millions of €)

FY 2021

FY 2020

Actual

Comp.

Orders

2,127

2,384

(11)%

(8)%

Revenue

2,271

2,263

0%

3%

therein: service business

373

362

3%

5%

Adjusted EBITA

208

210

(1)%

therein: severance

(5)

(4)

Adjusted EBITA margin

9.2%

9.3%

excl. severance

9.4%

9.5%

  • Order intake included a contract win of €0.3 billion for locomotives in the U.S. and a €0.1 billion contract for signaling infrastructure in the U.K.; the basis of comparison in Q2 FY 2020 included a higher volume from large orders
  • Comparable revenue growth was due mainly to the rail infrastructure business; revenue development particularly in the rolling stock business was held back by ongoing impacts related to COVID-19 including measures to safeguard employee health in manufacturing facilities
  • Adjusted EBITA and profitability remained close to the strong prior- year level

3

Earnings Release Q2 FY 2021 | Siemens Healthineers, Siemens Financial Services, Portfolio Companies

Siemens Healthineers

Q2

% Change

(in millions of €)

FY 2021

FY 2020

Actual

Comp.

Orders

4,491

3,816

18%

23%

Revenue

3,965

3,685

8%

13%

Adjusted EBITA

679

612

11%

therein: severance

(25)

(17)

Adjusted EBITA margin

17.1%

16.6%

excl. severance

17.8%

17.1%

  • Broad-basedincreases in orders and revenue, including volume from rapid coronavirus antigen tests, particularly in Europe, C.I.S., Africa, Middle East; substantial negative currency translation effects, primarily in the Americas, held back volume growth
  • Margin expansion and increase in Adjusted EBITA in the diagnostics business mainly driven by revenue from rapid coronavirus antigen tests
  • In April 2021, after the second quarter, Siemens Healthineers closed its acquisition of Varian; an associated capital increase during the second quarter had the effect of reducing Siemens' stake in Siemens Healthineers from approximately 79% to slightly above 75%

Siemens Financial Services

Q2

(in millions of €)

FY 2021

FY 2020

Earnings before taxes (EBT)

156

93

therein: equity business

26

41

therein: severance

(2)

(1)

ROE (after taxes)

18.9%

12.6%

Mar 31,

Sep 30,

(in millions of €)

2021

2020

Total assets

29,053

28,946

  • Strong earnings contribution from the debt business driven by sharply lower expenses for credit risk provisions compared to Q2 FY 2020, when results were significantly influenced by the initial worldwide spread of COVID-19
  • Solid earnings contribution from the equity business, despite reduced results in part due to sales of investments in previous periods, which led to lower shares of profit from investments accounted for using the equity method
  • Positive currency translation effects led to an increase in total assets since the end of fiscal 2020

Portfolio Companies

Q2

% Change

(in millions of €)

FY 2021

FY 2020

Actual

Comp.

Orders

833

727

15%

20%

Revenue

723

857

(16)%

(11)%

Adjusted EBITA

(68)

(38)

(77)%

therein: severance

(63)

(8)

Adjusted EBITA margin

(9.4)%

(4.5)%

excl. severance

(0.6)%

(3.6)%

  • Order and revenue development year-over-year was influenced by substantial negative currency translation effects
  • Broad-baseddouble-digit order growth, with the strongest growth contribution coming from Siemens Logistics, which recorded a higher volume from large orders compared to Q2 FY 2020; this more than offset a lower volume at Large Drives Applications
  • Revenue declined across most of the businesses, in some substantially, due mainly to impacts related to COVID-19; this was partly offset by strong growth in the regional remaining business activities of the former Gas and Power segment (Siemens Energy Assets)
  • Adjusted EBITA included sharply higher severance charges related to cost structure improvements mainly at Large Drives Applications, which more than offset a decreased burden recorded for equity investments
  • Equity investment results are expected to remain volatile in coming quarters

4

Earnings Release Q2 FY 2021 | Reconciliation to Consolidated Financial Statements, Outlook

Reconciliation to Consolidated

Financial Statements

Profit

Q2

(in millions of €)

FY 2021

FY 2020

Siemens Energy Investment

(37)

Siemens Real Estate

11

34

Corporate items

36

(78)

Centrally carried pension expense

(45)

(67)

Amortization of intangible assets acquired in

business combinations

(145)

(185)

Eliminations, Corporate Treasury and other

reconciling items

(12)

(63)

Reconciliation to

Consolidated Financial Statements

(192)

(359)

  • Siemens Energy Investment includes participation in its profit after tax and, in addition, amortization of assets resulting from purchase price allocation due to the initial recognition of the investment at fair value in Q4 FY 2020
  • Positive swing in Corporate items primarily due to a gain of €222 million in connection with a contribution to Siemens Pension-Trust e.V. in Germany: transfer of the stake in ChargePoint, which became publicly traded in March 2021 following its merger with a special purpose acquisition company (SPAC); severance charges were €19 million (€18 million in Q2 FY 2020)
  • Eliminations, Corporate Treasury and other reconciling items included lower interest expenses on debt

Outlook

Although we continue to anticipate a complex macroeconomic environment influenced by COVID-19, we expect our businesses to continue to deliver a strong performance in the second half of fiscal 2021. Furthermore, we realized substantial gains from portfolio transactions in the first half of the fiscal year. Therefore, we again raise our outlook for the fiscal year.

We continue to anticipate that negative currency effects will strongly burden both nominal growth rates in volume and Adjusted EBITA for our industrial businesses in fiscal 2021.

We now raise our expectation for comparable revenue, net of currency translation and portfolio effects, to growth of 9% to 11%, above the range of mid- to high-single-digit growth given in the Earnings Release for Q1 FY 2021. We continue to expect a book-to-bill ratio above 1.

Digital Industries now expects fiscal 2021 comparable revenue to grow in the range of 9% to 11% year-over-year. The expectation for Adjusted EBITA margin is now 20% to 21%, an increase of one percentage point.

Smart Infrastructure expects to achieve comparable revenue growth of 5% to 7% in fiscal 2021. The expectation for Adjusted EBITA margin is now 11% to 12%, an increase of half a percentage point.

Mobility continues to anticipate mid-single-digit comparable revenue growth and an Adjusted EBITA margin of 9.5% to 10.5% in fiscal 2021.

In line with the results already achieved during the first half of fiscal 2021 and the expectations described above, we raise our outlook for net income to the range from €5.7 to €6.2 billion, well above the previous expectation of net income in the range of €5.0 to €5.5 billion.

As previously, this outlook excludes burdens from legal and regulatory issues and effects in connection with Siemens Healthineers' acquisition of Varian Medical Systems, Inc.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Siemens AG published this content on 07 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2021 05:04:04 UTC.


© Publicnow 2021
All news about SIEMENS AG
03:00aSIEMENS AG  : JP Morgan reaffirms its Buy rating
MD
06/17SIEMENS  : Consultancy firm ThoughtWorks' parent co confidentially files for U.S..
RE
06/17SIEMENS ENERGY  : Wins Supply Contract for Two Turbines
MT
06/17MARKET CHATTER : Siemens May Upgrade Growth, Profit Targets
MT
06/17SIEMENS  : Gamesa to supply typhoon-proof turbines to Japan's largest onshore cl..
AQ
06/17SIEMENS HEALTHINEERS  : Kepler Cheuvreux reaffirms its Buy rating
MD
06/17SIEMENS  : to raise growth and profitability targets - report
RE
06/17SIEMENS  : Execs In Germany To Receive Electric Cars In January 2022
MT
06/17SIEMENS AG  : UBS reaffirms its Buy rating
MD
06/17SIEMENS  : to introduce sustainable and flexible company car policy
PU
More news
Financials
Sales 2021 59 782 M 71 014 M 71 014 M
Net income 2021 5 545 M 6 587 M 6 587 M
Net Debt 2021 31 659 M 37 607 M 37 607 M
P/E ratio 2021 19,8x
Yield 2021 2,65%
Capitalization 107 B 127 B 127 B
EV / Sales 2021 2,32x
EV / Sales 2022 2,16x
Nbr of Employees 293 000
Free-Float 88,0%
Chart SIEMENS AG
Duration : Period :
Siemens AG Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SIEMENS AG
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 25
Average target price 159,62 €
Last Close Price 133,70 €
Spread / Highest target 49,6%
Spread / Average Target 19,4%
Spread / Lowest Target -6,51%
EPS Revisions
Managers and Directors
NameTitle
Roland Emil Busch President & Chief Executive Officer
Ralf Peter Thomas Chief Financial Officer
Jim Hagemann Snabe Chairman-Supervisory Board
Hanna Hennig Chief Information Officer
Andreas Christian Hoffmann General Counsel, Head-Legal & Compliance
Sector and Competitors
1st jan.Capitalization (M$)
SIEMENS AG13.77%126 658
BERKSHIRE HATHAWAY INC.18.66%626 851
HONEYWELL INTERNATIONAL INC.-0.09%147 593
GENERAL ELECTRIC COMPANY18.33%112 191
3M COMPANY9.62%111 066
ILLINOIS TOOL WORKS INC.7.69%69 355