DGAP-Regulatory: Siemens Aktiengesellschaft: Fiscal 2013 - Financial summary
Siemens Aktiengesellschaft / Final Results
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Fiscal 2013 - Financial summary
In fiscal 2013, our revenue came in 2% below the prior fiscal year. A slight
increase at Infrastructure & Cities was more than offset by lower revenue at
Industry and Energy. Revenue at Healthcare was stable year-over-year. On an
organic basis, excluding currency translation and portfolio effects, revenue was
1% down year-over-year, within our forecast given in our Annual Report for
2012. We increased orders by 8% year-over-year. This increase was driven by our
Infrastructure & Cities Sector and the Energy Sector. Both Sectors won a sharply
higher volume from major contracts - Infrastructure & Cities within its
Transportation & Logistics Business and Energy within its Wind Power Division.
In fiscal 2013, we achieved income from continuing operations of EUR4.212
This was lower than income from continuing operations of EUR4.642 billion a year
earlier and also below our expectation of EUR4.5 to EUR5.0 billion as presented
Annual Report for 2012. A condition of that forecast was an expected recovery in
the markets for our short-cycle businesses in the second half of fiscal 2013.
did not materialize. Additionally, that forecast assumed 'Siemens 2014' charges
for fiscal 2013 of EUR1.0 billion (pretax). In fact, the amount came in EUR0.3
Other factors largely offset each other. While profit in the Energy Sector was
burdened by portfolio topics related to the solar business, this impact
was more than offset by positive effects related to the sale of our stake
in Nokia Siemens Networks Holding B.V. (NSN). Due mainly to these factors,
we adjusted our forecast for Income from continuing operations to EUR4.0
the Interim Report for the third quarter of fiscal 2013.
Lower Income from continuing operations year-over-year was due mainly to sharply
lower profit in Infrastructure & Cites and Industry. These Sectors took the two
largest shares in the above-mentioned 'Siemens 2014' charges. Profit at
Infrastructure & Cities was also burdened by sharply higher project charges
profit development at Industry was also held back by challenging market
conditions, particularly in the Sector's short-cycle businesses as mentioned
above. In contrast, Healthcare significantly improved profit year-over-year due
mainly to successful execution of its 'Agenda 2013' and lower charges associated
with the initiative compared to the prior year. Profit at Energy rose moderately
year-over-year. In both fiscal years, the Sector's profit development was
burdened by charges. While profit in the current period was particularly
by 'Siemens 2014' charges, charges related to projects and Iran were
higher in the prior-year period. While Total Sectors profit fell year-over-year,
this was partly offset by a strong improvement outside the Sectors. In
Equity Investments posted a profit in fiscal 2013 following a loss a year
as it benefited from a positive effect stemming from a partial reversal of an
impairment of our stake in NSN and a gain related to the sale of this stake
the fourth quarter of fiscal 2013. In the prior fiscal year, results at Equity
Investments were burdened by substantial restructuring charges at NSN.
Net income in fiscal 2013 increased to EUR4.409 billion, up from EUR4.282
year earlier, as results related to discontinued operations swung to a positive
EUR197 million in fiscal 2013 from a negative EUR360 million a year earlier. The
improvement in discontinued operations year-over-year was due mainly to OSRAM,
which we successfully spun off in the fourth quarter of fiscal 2013. Due to
Net income and a lower number of shares outstanding year-over-year following the
share buyback program which we initiated in the fourth quarter of fiscal 2012,
basic EPS rose to EUR5.08 in the current period, up from EUR4.74 a year earlier.
In fiscal 2013, Healthcare reached the upper end of its adjusted EBITDA margin
target range. Adjusted EBITDA margin at Industry fell year-over-year, but the
Sector remained in its target range. Despite burdens from the solar business,
Energy nearly reached the lower end of its adjusted EBITDA target range, while
Infrastructure & Cities clearly missed its range.
As a result of a combination of lower-than-expected Income from continuing
operations and a higher average capital employed, ROCE (adjusted) for continuing
operations declined to 13.8% in fiscal 2013. This was below the lower end of our
target range of 15% to 20%, which we expected to reach. ROCE (adjusted) for
continuing operations a year earlier was 15.5%.
Our Free cash flow from continuing operations rose 11% to EUR5.257 billion
year-over-year, as we increased our cash flows from operating activities and
reduced investments in intangible assets and property, plant and equipment
We made further progress in fiscal 2013 with regard to reaching our capital
structure target. This target is defined as the ratio of adjusted industrial net
debt to adjusted EBITDA, and set at 0.5 to 1.0 for the medium term. As forecast
our Annual Report for 2012, we increased the ratio year-over-year, to 0.34 from
0.24 a year earlier.
Overall, we believe that we achieved the goals for revenue and our capital
structure announced in our Annual Report for 2012. Also we exceeded our revised
target for Income from continuing operations announced in our Interim Report for
the third quarter of fiscal 2013. ROCE (adjusted) for continuing operations was
below our expectations due primarily to lower Income from continuing operations
than we forecast a year ago.
During the course of fiscal 2013, it became less likely that our previous
expectations for our markets would materialize. We therefore no longer expect to
achieve a Total Sectors profit margin of at least 12% in fiscal 2014. But we
continue to rigorously execute our 'Siemens 2014' program that was designed to
achieve the margin target.
At the end of fiscal 2013, we were ahead of identifying and implementing the
measures within the program aimed at sustainably improving our productivity. We
expect that 'Siemens 2014' will help us to narrow or close the gap to our
competitors in coming years.
During fiscal 2013, we also made strong progress in focusing our portfolio. Our
successful spin-off of OSRAM was the first such partial spin-off by a German
company. With the spin-off, Siemens shareholders received one OSRAM share per
Siemens AG shares. Independence gives OSRAM the entrepreneurial flexibility to
focus exclusively on its own market, with additional sources for financing. A
stake in OSRAM gives shareholders of Siemens AG an additional opportunity to
participate in OSRAM's potential growth and value creation. The shares of
AG rose on the first day of trading for OSRAM, July 8, 2013, and the shares of
both companies clearly outperformed the German DAX stock index through the
remainder of the fiscal year. We also sold our 50% stake in NSN. After the end
fiscal 2013, we signed an agreement to sell our business of mechanical,
and chemical water treatment and processing. Furthermore, we intend to sell our
airport logistics and postal automation business and exit our solar business
completion of projects under execution. At the same time, we strengthened our
activities by acquiring LMS International NV (LMS) to expand and complement the
Industry Sector's industrial IT and software business, and by acquiring Invensys
Rail to expand Infrastructure & Cities' presence in the growing global rail
We intend to continue providing an attractive return to shareholders. As in the
past, we intend to fund the dividend payout from Free cash flow. The Siemens
Managing Board, in agreement with the Supervisory Board, proposes a dividend of
EUR3.00 per share, unchanged from a year earlier.
The Siemens Share / Investor Relations
The Siemens share price developed positively over the course of fiscal 2013, but
did not perform as well as the share prices of major benchmark companies. Due to
uncertainties regarding economic growth in Europe and the emerging countries,
stock markets were highly volatile in the reporting period. During the first
of fiscal 2013, Siemens' share price development was largely in line with the
overall market trend.
In July, several events led to a positive development of the Siemens share. At
beginning of the month, we sold our stake in the NSN joint venture to Nokia. A
days later, OSRAM Licht AG was spun off from Siemens. As a result of these
shareholders profited both from an increase in the Siemens share price and from
grant of OSRAM shares free of charge. At the end of July 2013, our Supervisory
Board unanimously appointed the long-time CFO Joe Kaeser as President and CEO of
Siemens AG. In August and September 2013, the Company 's share price gained
substantially, reaching a new high for the year.
Siemens on the capital market.
We take our responsibility to maintain an intensive dialogue with the capital
market very seriously. Cultivating close contacts with our shareholders, we keep
them informed of all major developments throughout Siemens.
As part of our investor relations work, we provide information on our Company 's
development in quarterly, semiannual and annual reports. Our CEO and CFO also
maintain close contact with investors through roadshows and conferences. In
addition, Siemens holds Sector Capital Market Days, at which the management of
Sectors informs investors and analysts about the Sectors' business strategies
We also provide extensive information online. Quarterly, semiannual and annual
reports, analyst presentations, press releases and our financial calendar for
current year (please see FINANCIAL CALENDAR ON THE MIDDLE PAGE), which includes
all major publication dates as well as the date of the Annual Shareholders'
Meeting, are available at WWW.SIEMENS.COM/INVESTORS.
Additional information on our investor relations activities is available at:
and in the Siemens Annual Report 2013, the English
and German versions of which can be downloaded at:
Copies of the Annual Report can be ordered free of charge at:
Fax + 49 7237 - 1736
This document includes supplemental financial measures that are or may be non-
financial measures. Orders and order backlog; adjusted or organic growth rates
revenue and orders; book-to-bill ratio; Total Sectors profit; return on equity
(after tax), or ROE (after tax); return on capital employed (adjusted), or ROCE
(adjusted); Free cash flow, or FCF; adjusted EBITDA; adjusted EBIT; adjusted
EBITDA margins, earnings effects from purchase price allocation, or PPA effects;
net debt and adjusted industrial net debt are or may be such non-GAAP financial
measures. These supplemental financial measures should not be viewed in
as alternatives to measures of Siemens' financial condition, results of
or cash flows as presented in accordance with IFRS in its Consolidated Financial
Statements. Other companies that report or describe similarly titled financial
measures may calculate them differently. Definitions of these supplemental
financial measures, a discussion of the most directly comparable IFRS financial
measures, information regarding the usefulness of Siemens' supplemental
measures, the limitations associated with these measures and reconciliations to
the most comparable IFRS financial measures are available on Siemens' Investor
Relations website at WWW.SIEMENS.COM/NONGAAP. For additional information, see
supplemental financial measures and the related discussion in Siemens' most
annual report on Form 20-F, which can be found on our Investor Relations website
or via the EDGAR system on the website of the United States Securities and
This document contains statements related to our future business and financial
performance and future events or developments involving Siemens that may
constitute forwardlooking statements. These statements may be identified by
such as 'expects,' 'looks forward to,' 'anticipates,' 'intends,' 'plans,'
'believes,' 'seeks,' 'estimates,' 'will,' 'project' or words of similar meaning.
We may also make forward-looking statements in other reports, in presentations,
material delivered to shareholders and in press releases. In addition, our
representatives may from time to time make oral forward-looking statements.
Such statements are based on the current expectations and certain assumptions of
Siemens' management, and are, therefore, subject to certain risks and
uncertainties. A variety of factors, many of which are beyond Siemens' control,
affect Siemens' operations, performance, business strategy and results and could
cause the actual results, performance or achievements of Siemens to be
different from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements or anticipated on the
basis of historical trends. These factors include in particular, but are not
limited to, the matters described in Item 3: Key information - Risk factors of
most recent annual report on Form 20-F filed with the SEC, in the chapter
of our most recent annual report prepared in accordance with the German
Code, and in the chapter 'Report on risks and opportunities' of our most recent
Further information about risks and uncertainties affecting Siemens is included
throughout our most recent annual and interim reports, as well as our most
earnings release, which are available on the Siemens website, WWW.SIEMENS.COM,
throughout our most recent annual report on Form 20-F and in our other filings
with the SEC, which are available on the Siemens website, WWW.SIEMENS.COM, and
the SEC's website, WWW.SEC.GOV. Should one or more of these risks or
materialize, or should underlying assumptions prove incorrect, actual results,
performance or achievements of Siemens may vary materially from those described
the relevant forward-looking statement as being expected, anticipated, intended,
planned, believed, sought, estimated or projected. Siemens neither intends, nor
assumes any obligation, to update or revise these forward-looking statements in
light of developments which differ from those anticipated.
Due to rounding, numbers presented throughout this and other documents may not
up precisely to the totals provided and percentages may not precisely reflect
Siemens Investor Relations
+49 (0) 89-636-32474
31.01.2014 DGAP's Distribution Services include Regulatory Announcements,
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Company: Siemens Aktiengesellschaft
Phone: +49 (0)89 636-00
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Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt
(Prime Standard), Hamburg, Hannover, München,
Stuttgart; Terminbörse EUREX; London, NYSE, SIX
Category Code: FR
Sequence Number: 1871
Time of Receipt: Jan 31, 2014 15:59:00
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