Confirm performance target guidance

INNPM01 Siemens confirms guidance for the Siemens Group’s performance targets for fiscal year 2024. The Company expects its physical business to continue to grow profitably on the basis that it does not expect further escalation of geopolitical tensions.

Excluding the impact of currency movements and business mix, Siemens expects revenue to grow by 4% to 8% on a like-for-like basis and maintains its expectation of a book-to-bill ratio of more than 1.

Contrary to previous forecasts, destocking by customers in the automation business of the Digital Industrial Group is expected to continue into the second half of the natural year, especially in the Chinese market. It is expected that in the second half of the fiscal year 2024, the demand for the automation business of the digital Industrial Group will recover from the first half of the fiscal year, and it expects to win large contracts in the software business. As a result, the current Digital Industries Group expects revenue to decline 8% to 4% on a like-for-like basis in fiscal 2024 (previously expected to grow 0% to 3%) and margins to be 18% to 21% (previously expected to grow 20% to 23%).

INNPM01 The Smart Infrastructure Group expects fiscal 2024 revenue to grow 8 to 10 percent on a like-for-like basis (previously 7 to 10 percent) and margins to be 16 to 17 percent (previously 15 to 17 percent).

Siemens Transportation also confirmed its expectations for fiscal year 2024. Revenue in fiscal 2024 will grow 8% to 11% on a comparable basis, and margins are expected to be 8% to 10%.

Siemens expects the increase in profitability of the physical business to drive basic earnings per share (net income before acquisition price) in the range of €10.40 to €11.00 in fiscal year 2024, excluding the positive impact of earnings per share of €0.61 from the investment in Siemens Energy in the first quarter of fiscal year 2024. With the termination of the equity method of accounting in the first quarter of fiscal 2024, the Siemens Energy investment is not expected to have an additional impact on future earnings per share. Excluding the impact of the Siemens Energy investment, basic earnings per share for fiscal year 2023 were €9.93 (net income before acquisition price allocation).

The expected figures exclude the possible impact of legal and regulatory measures.