Strong and profitable growth companywide.
Adjusted EBITA margin rose to 15.1 percent (Q2 2020: 12.1 percent), Adjusted EBITA Industrial Businesses soared 31 percent to EUR2.1 billion
Revenue increased sharply to EUR14.7 billion (Q2 2020: EUR13.8 billion), with orders strong at EUR15.9 billion (Q2 2020: EUR14.7 billion)
Net income more than tripled to EUR2.4 billion (Q2 2020: EUR697 million)
Successful portfolio management: one-time gain of about EUR0.9 billion on sale of Flender GmbH
Excellent free cash flow of EUR1.2 billion (Q2 2020: EUR134 million)
Guidance for 2021 raised again - expected net income of EUR5.7 billion to EUR6.2 billion, excluding effects in connection with the acquisition of Varian Medical Systems Inc.
With an excellent second quarter, Siemens AG followed on seamlessly from its successful start to the fiscal year. Despite a persistently challenging macroeconomic environment, influenced among other things by the COVID-19 pandemic, and negative currency translation effects, development across all company business areas continued to be positive. In line with these results, Siemens is again raising its guidance for fiscal 2021 and now expects companywide revenue growth of 9 percent to 11 percent on a comparable basis (previous forecast: mid- to high-single-digit growth) and net income of between EUR5.7 billion and EUR6.2 billion (previous forecast: EUR5.0 billion to EUR5.5 billion).
'As our order intake and revenue in the second quarter impressively demonstrate, our customers place great trust in us. We support our customers in 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 we're delivering excellent results in all our businesses 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.
Strong growth and high profitability companywide
In Q2 2021, Siemens sharply increased Group revenue by nine percent on a comparable basis to EUR14.7 billion due to growth in all four areas of its Industrial Businesses and strong momentum in China. At EUR15.9 billion on a comparable basis, orders climbed an impressive 11 percent year-over-year. Here, Siemens Healthineers and Smart Infrastructure, each of which achieved strong double-digit growth, were the biggest drivers. At 1.08, the book-to-bill ratio was very robust.
Adjusted EBITA Industrial Businesses rose substantially to EUR2.1 billion, an increase of 31 percent. Adjusted EBITA margin Industrial Businesses was 15.1 percent (Q2 2020: 12.1 percent).
At EUR2.4 billion, net income was more than three times the Q2 2020 figure of EUR697 million. Net income in Q2 2021 included a one-time gain of about EUR0.9 billion on the sale of Flender GmbH, which was completed in mid-March as part of the company's successful portfolio management.
In Q2 2021, Siemens again increased free cash flow significantly to EUR1.2 billion (Q2 2020: EUR134 million).
Excellent development at all Industrial Businesses
Revenue at Digital Industries rose 14 percent on a comparable basis to EUR4.0 billion, with the short-cycle businesses making the strongest contribution. This development was primarily due to the ongoing recovery in the automotive industry and machine building. Orders grew 8 percent on a comparable basis to EUR4.3 billion. In Q2 2021, Adjusted EBITA surged 39 percent to EUR811 million. This increase was primarily due to strong growth in the electronic design automation (EDA) software business and the short-cycle businesses. At 20.1 percent, Adjusted EBITA margin was considerably above the Q2 2020 figure of 15.9 percent.
At Smart Infrastructure, orders increased 10 percent on a comparable basis to EUR4.0 billion. This development was supported by all business areas, with the strongest growth coming from the systems and software business and the products business. At EUR3.6 billion, revenue was up 6 percent on a comparable basis. At EUR390 million, Adjusted EBITA was more than twice the Q2 2020 figure of EUR185 million. All areas contributed to this strong performance as did cost savings and higher capacity utilization. Adjusted EBITA margin climbed to 11.0 percent compared to 5.2 percent in Q2 2020.
At Mobility, revenue grew three percent on a comparable basis to EUR2.3 billion, while orders declined 8 percent to EUR2.1 billion. This decline was due, above all, to the postponement of orders to the second half-year. Nonetheless, Adjusted EBITA and Adjusted EBITA margin - at EUR208 million and 9.2 percent, respectively - remained close to the level of the strong prior-year quarter.
Varian acquisition successfully completed
Following the conclusion of the second quarter, Siemens Healthineers AG successfully completed the acquisition of Varian Medical Systems, Inc., a world-leading specialist in radiotherapy and multi-disciplinary cancer care. The acquisition will enable Siemens Healthineers to accelerate its impact on global healthcare and offer the company considerable potential for value creation. As a majority stakeholder, Siemens AG will also profit from this move. As planned and originally announced, Siemens did not participate in Siemens Healthineers' capital increase at the end of March 2021. As a result, Siemens AG's stake in Siemens Healthineers further declined to somewhat more than 75 percent. Siemens remains a strong, long-term majority shareholder.
Guidance raised again
Although Siemens continues to anticipate a complex macroeconomic environment influenced by COVID-19, the company expects its businesses to continue to deliver a strong performance in the second half of fiscal 2021. Furthermore, Siemens realized substantial gains from portfolio transactions in the first half of the fiscal year. Therefore, the company is again raising its outlook for the fiscal year.
Siemens continues to anticipate that negative currency effects will strongly burden both nominal growth rates in volume and Adjusted EBITA for its Industrial Businesses in fiscal 2021.
Siemens is now raising its expectation for comparable revenue, net of currency translation and portfolio effects, to growth of 9 percent to 11 percent, above the range of mid- to high-single-digit growth given in the Earnings Release for Q1 FY 2021. The company continues to expect a book-to-bill ratio above 1.
Digital Industries now expects fiscal 2021 comparable revenue to grow in the range of 9 percent to 11 percent year-over-year. The expectation for Adjusted EBITA margin is now 20 percent to 21 percent, an increase of one percentage point.
Smart Infrastructure expects to achieve comparable revenue growth of 5 percent to 7 percent in fiscal 2021. The expectation for Adjusted EBITA margin is now 11 percent to 12 percent, 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 percent to 10.5 percent in fiscal 2021.
In line with the results already achieved during the first half of fiscal 2021 and the expectations described above, Siemens is raising its outlook for net income to the range of EUR5.7 billion to EUR6.2 billion, well above the previous expectation of net income in the range of EUR5.0 billion to EUR5.5 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.
VARIAN MEDICAL SYSTEMS, INC. 
