"Excellent start to fiscal year 2021" is the headline of the Siemens press release on the figures for the first quarter of the current fiscal year. The Group recorded year-on-year growth in almost all segments. Outgoing CEO Joe Kaeser: "The team delivered an outstanding performance despite a complex environment. I am grateful to be able to hand over such a strong company to the new management team." He will do this at the Annual General Meeting on February 3.

Kaeser describes the "complex environment" as including the general conditions caused by the coronavirus pandemic and negative currency effects. Nevertheless, order intake, sales revenue and profit after tax in the period from October to December 2020 significantly exceeded the previous year's figures and market expectations.

Annual forecast raised

Siemens continues to expect a complex macroeconomic environment. However, the first quarter of 2021 showed that conditions in some businesses and geographic regions improved significantly. If these conditions continue in the coming quarters, especially for the short-cycle businesses, the Group expects a better result for fiscal 2021. Although Siemens continues to expect negative currency effects to significantly impact both nominal volume growth rates and Adjusted EBITA of the Industrial Businesses in fiscal 2021, the first quarter's performance raises expectations. The forecast for the year is being raised: The Group expects moderate growth in revenue on a like-for-like basis in the mid to high single-digit percentage range. This means that the outlook for profit after tax has been raised to a range of EUR 5.0 to 5.5 billion. By comparison, profit after tax for the 2020 financial year amounted to EUR 4.2 billion. Those responsible continue to expect a ratio of incoming orders to sales revenue (book-to-bill ratio) of over 1.

The figures at a glance - Siemens Digital Industries

The percentages in the following text refer to figures on a comparable basis (adjusted for currency translation and portfolio effects).

The Siemens Group's order intake rose by 15% from €14.361 billion in Q1/20 to €15.940 billion in Q1/21. The increase in order intake was seen across all segments, but was led by Mobility, which recorded a very sharp rise in the volume of major orders.

Sales rose by 7% to EUR 14.071 billion (Q1/20: EUR 13.675 billion). In geographical terms, growth was strongest in China and Germany. Adjusted EBITA Industrial Business at Digital Industries increased from EUR 1.533 billion in the same quarter of the previous year to EUR 2.128 billion. This is attributable to a recovery in the high-margin short-cycle businesses and a sharp fall in personnel restructuring expenses.

Profit after tax rose from EUR 1.089 billion (Q1/20) to EUR 1.498 billion due to the sharp increase in Adjusted EBITA Industrial Business (offset by a higher tax rate) and a positive contribution from discontinued operations. It should be noted that the first quarter of the 2020 financial year included a loss from discontinued operations, mainly in connection with the former energy business.

The free cash flow of the industrial businesses amounted to EUR 1.468 billion in Q1/21 (Q1/20: EUR 189 million).

Digital Industries - double-digit growth in China

Excluding currency translation and portfolio effects, growth in incoming orders at Digital Industries amounted to 2% (Q1/20: €4.228 billion; Q1/21: €4.120 billion). The automation business saw particularly strong growth: The division recorded double-digit growth in China and Germany. Compared to the same quarter of the previous year, sales rose from 3.762 billion euros to 3.765 billion euros. In China, sales increased by a double-digit percentage. The software business, on the other hand, was slightly down on the same quarter of the previous year (EUR 1.014 billion) at EUR 1.004 billion.

As already mentioned, the development of adjusted EBITA also benefited from a sharp year-on-year decline in personnel restructuring expenses (Q1/20: EUR -115 million; Q1/21: EUR -14 million) as well as cost savings as a result of the implementation of the cost structure optimization program and due to COVID-19 restrictions, such as lower travel and marketing expenses.

The figures at a glance: Smart Infrastructure, Mobility, Healthineers

Smart Infrastructure was also able to increase its order intake. Incoming orders rose by 7% from EUR 3.756 billion in the same quarter of the previous year to EUR 3.806 billion. Sales declined slightly (Q1/20: EUR 3.529 billion; Q1/21: EUR 3.477 billion) due to strong negative currency translation effects. China is also a growth driver in this segment; Smart Infrastructure also recorded a double-digit percentage increase in China.

The Mobility division recorded a very strong increase in the volume of major orders compared to the previous year: incoming orders rose by 67% from EUR 1.665 billion to EUR 2.742 billion. This includes orders from Germany worth EUR 0.4 billion for light rail vehicles, over EUR 0.3 billion for regional trains and an order worth EUR 0.1 billion for Germany's initiative to digitalize its rail infrastructure. The completed orders resulted in sales growth from EUR 2.180 billion to EUR 2.193 billion.

Siemens Healthineers recorded an increase in order intake: it rose from €4.125 billion in Q1/20 to €4.387 billion in the first quarter of 2021. This also includes a new volume from coronavirus antigen rapid tests. However, volume growth is being held back by strong negative currency translation effects. Sales revenue increased by 13% from EUR 3.587 billion in the same period of the previous year to EUR 3.868 billion in the first quarter. Adjusted EBITA rose from a low comparative basis, but included negative effects of EUR 67 million in connection with the planned acquisition of Varian Medical Systems as well as negative currency translation effects.