In the second quarter, Siemens continued its growth path and achieved strong operational performance. The rise in orders and revenue again reflects the trust our customers place in us to support digitalization, automation and sustainability. In an extremely challenging environment, our business continues to be strong. We join the international community in condemning the war in Ukraine and are focused on supporting our people and providing humanitarian aid. Today, we announced our decision to carry out an orderly process to wind down our industrial business activities in Russia.
Roland Busch, President and Chief Executive Officer of Siemens AG
With strong operating results and excellent free cash flow of €1.3 billion, Siemens’ second quarter underlines our execution capabilities and strength, even in the face of significant headwinds. The now tangible results of our portfolio optimization and ongoing mitigation of supply chain challenges allow us to look confidently into the second half of our fiscal year. As a result, we confirm our outlook.
Ralf P. Thomas, Chief Financial Officer of Siemens AG
The financial publications can be downloaded at www.siemens.com/ir
We confirm our financial targets for fiscal 2022 for the Siemens Group, which are based on continuing growth in global GDP and our expectation that the challenges to our businesses from COVID-19 and supply chain constraints will not worsen in the remainder of fiscal 2022. Under these conditions, we expect our Industrial Business to continue its profitable growth.
For the Siemens Group we expect 6% to 8% growth in comparable revenue, net of currency translation and portfolio effects (previously expected at mid-single-digit), and a book-to-bill ratio above 1.
Digital Industries expects for fiscal 2022 to achieve comparable revenue growth of 9% to 12% (previously expected at 5% to 8%) and a profit margin of 19% to 21%, including an expected reduction of up to two percentage points from fast ramp-up of 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 6% to 9% (previously expected at 5% to 8%). The profit margin is expected to be 12% to 13%.
Mobility, which previously expected fiscal 2022 comparable revenue growth of 5% to 8%, now expects revenue on the prior-year level. The profit margin is expected to be 10.0% to 10.5%, with the expected gain from the sale of Yunex Traffic being sufficient to balance impacts related to the sanctions imposed on Russia.
We continue to expect the profitable growth of our Industrial Business 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. Net income in fiscal 2021 included a positive contribution from divestments and other portfolio-related gains totaling €1.5 billion. We assume a similar positive contribution in fiscal 2022 from portfolio-related results net of burdens related to Russia. Portfolio-related results include the sales of Yunex Traffic, the mail and parcel-handling business of Siemens Logistics and our stake in Valeo Siemens eAutomotive.
This outlook excludes burdens from legal and regulatory matters.