Earnings Release Q1 FY 2022: Very successful start to fiscal 2022

Orders for the first quarter surged 52% year-over-year, reaching €24.2 billion on double-digit increases in all industrial businesses, while revenue climbed 17% year-over-year, to €16.5 billion, for an extraordinary book-to-bill ratio of 1.47
Orders rose 42% and revenue grew 9% on a comparable basis, excluding currency translation and portfolio effects, primarily the acquisition of Varian Medical Systems, Inc. (Varian) between the periods under review
Profit Industrial Business increased 12% year-over-year, to €2.5 billion, and the profit margin came in at 15.7%
Net income rose 20% to €1.8 billion resulting in basic earnings per share (EPS) of €2.05; EPS before purchase price allocation accounting (EPS pre PPA) was €2.24
Free cash flow from continuing and discontinued operations stronger year-over-year at €1.1 billion

Outlook

Our outlook for fiscal 2022 remains unchanged. It 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, 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.