Astral performance and successful launch as a focused technology company
Siemens delivered a astral performance in financial 2021 ( end September 30, 2021), recording a net income of€6.7 billion and therefore exceeding its net income guidance. The company reported earnings at all four of its Artificial Businesses and across all regions, emphasizing its successful metamorphosis into a focused technology company. A continuing complex macroeconomic terrain told by the COVID-19 epidemic and ongoing force chain pitfalls – associated primarily with electronic factors and raw accoutrements – were successfully eased.
Siemens served from a considerable profitable recovery and continuing growth, particularly in crucial requests similar as automotive, machine structure and electronics as well as in utmost structure- related sectors.
Siemens’Supervisory and Managing Boards propose to increase the tip from€3.50 a time before to€4.00, reflecting our astral performance in financial 2021 and our great confidence in the unborn development of the company.
“ We achieved a veritably successful launch as a focused technology company. In a grueling terrain, we’ve won request share and easily exceeded our net income guidance,” said Roland Busch, President and Chief Executive Officer of Siemens AG. “ This instigation will continue in financial 2022. We ’re immaculately deposited to support our guests and benefit from the major growth motorists of digitalization and sustainability. We’ve the right strategy and – over all – the stylish platoon. I ’m tête-à-tête veritably thankful for the outstanding fidelity of our platoon worldwide.”
“ With a record- setting free cash inflow, strong profit growth and high profitability at the same time, we formerly again demonstrated the performance capabilities and adaptability of Siemens,” added RalfP. Thomas, Chief Financial Officer of Siemens AG. “ Our shareholders also profit from this successful performance. With a veritably seductive tip, a strong stock price development and our new share buyback program, we continue to offer a largely seductive total shareholder return.”
Net income vastly increased – Free cash inflow at record position
In financial 2021, Siemens increased profit on a similar base by11.5 percent to€62.3 billion ( financial 2020€55.3 billion). Orders rose a substantial 21 percent to€71.4 billion ( financial 2020€58.0 billion).
Acclimated EBITA Artificial Businesses climbed 17 percent to€8.8 billion. Acclimated EBITA periphery Artificial Businesses totaled15.0 percent ( financial 202014.3 percent). Net income soared 59 percent to€6.7 billion ( financial 2020€4.2 billion), therefore exceeding the net income guidance. Siemens has raised its outlook for financial 2021 four times (net income most lately read at€6.1 billion to€6.4 billion). Introductory earnings per share for net income totaled€7.68 ( financial 2020€5.00).
At€8.2 billion, free cash inflow (from continuing and discontinued operations) set a new record ( financial 2020€6.4 billion), while free cash inflow for the Artificial Businesses also set a new record of€9.8 billion, a substantial increase of about 38 percent time-over-year ( financial 2020€7.1 billion).
The book-to-bill rate was1.15, an outstanding position.
Q4 – A strong finish to the financial time
Siemens completely abused its growth openings in numerous crucial requests in a continuing complex macroeconomic terrain also in Q4 2021. In Q4, the company successfully eased ongoing force chain challenges associated above all with electronic factors and raw accoutrements. At€19.1 billion (Q4 2020€15.1 billion), orders in Q4 2021 continued to be veritably strong, with earnings at all Artificial Businesses and in all reporting regions, led by Digital Diligence and Mobility. Profit was also over, rising 10 percent on a similar base to€17.4 billion (Q4 2020€14.8 billion). This increase was primarily attributable to double- number growth at Digital Diligence and Siemens Healthineers. At1.09, the book-to-bill rate was still vastly above 1.
Acclimated EBITA Artificial Businesses totaled€2.3 billion (Q4 2020€2.6 billion). In the previous- time quarter, Acclimated EBITA served from a€0.5 billion positive effect related to a stake in Bentley Systems, Inc. In addition, Smart Structure recorded a€0.2 billion gain in the previous- time quarter from the trade of a business. In Q4 2021, Siemens achieved a solid profit periphery of13.8 percent ( Acclimated EBITA periphery). Acclimated for the two abovementioned goods, the profit periphery was stable time-over-year.
Net income (from continuing operations) rose 22 percent to€1.3 billion (Q4 2020€1.0 billion). Still, sprucely 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 inflow (from continuing and discontinued operations) was again at an outstanding position (Q4 2020€3.8 billion), while free cash inflow from the Artificial Businesses rose to€3.8 billion, a substantial increase of around 21 percent (Q4 2020€3.1 billion).
Outlook for financial 2022
Siemens’ outlook for financial 2022 is grounded on continuing healthy growth in global GDP, albeit with decelerating instigation, and the anticipation that the challenges to its businesses from COVID-19 and force chain constraints will ease during financial 2022. With these conditions and given Siemens’ veritably strong financial time 2021, the company expects its Artificial Businesses to continue their profitable growth.
For the Siemens Group, the company expectsmid-single-digit similar profit growth, net of currency restatement and portfolio goods, and a book-to-bill rate above 1.
Digital Diligence expects for financial 2022 to achieve similar profit growth of 5 percent to 8 percent and a profit periphery of 19 percent to 21 percent, including known headwinds of over to two chance points associated with the strategic transition to Software-as-a-Service (SaaS) in corridor of its large software business.
Smart Structure expects for financial 2022 similar profit growth of 5 percent to 8 percent. The profit periphery is anticipated to be 12 percent to 13 percent.
Mobility expects for financial 2022 similar profit growth of 5 percent to 8 percent. The profit periphery is anticipated to be10.0 percent to10.5 percent.