- Orders rose by 39.0% to €10.5bn, substantially above the prior-year quarter, driven by Siemens Gamesa Renewable Energy (SGRE).
- Revenue moderately decreased by 4.4% to €6.5bn. On a comparable basis (excluding currency translation and portfolio effects) revenue was on prior-year’s level.
- Book-to-bill ratio (ratio of orders to revenue) was at 1.62, lifting order backlog to €84.2bn.
- Adjusted EBITA was €197m, sharply up from €88m in the prior-year quarter which was negatively impacted by the COVID-19 pandemic and project related matters, predominantly at SGRE. The recent quarter showed a solid performance with an improved operational profitability. With special items totaling negative €91m, Adjusted EBITA before special items sharply increased to €288m with a margin of 4.4%.
- Net income was €31m up sharply after a loss in the prior-year quarter. Corresponding basic earnings per share (EPS) rose to €0.03.
- For fiscal year 2021, management confirms the profitability outlook of 3% to 5% for the Adjusted EBITA margin before special items, while narrowing the range of expected revenue growth for Siemens Energy overall and both segments individually. For Siemens Energy, the nominal revenue growth rate in fiscal year 2021 now is expected to be in a range of 3% to 8%, previously 2% to 12%.
- Orders were substantially up driven by growth at SGRE, which more than offset the clear decrease at Gas and Power (GP).
- Revenue was moderately down on a reported basis. While SGRE achieved a clear increase, GP posted a clear decline. Excluding cur-rency translation and portfolio effects, total revenue was in line with the prior-year quarter.
- Service revenue came in moderately below the prior-year quarter, as the clear increase at SGRE was more than offset by a decrease at GP.
- Book-to-bill ratio was especially strong at 1.62. Order backlog rose to €84.2bn.
- Adjusted EBITA increased sharply and was primarily driven by SGRE. GP’s profitability exceeded the strong prior-year quarter’s level, its Adjusted EBITA was nearly level year-over-year.
- Special items significantly decreased compared to prior-year quarter. A sharp increase of restructuring and integration costs was more than offset by a positive effect related to strategic portfolio decisions.
- Adjusted EBITA margin before special items of Siemens Energy im-proved year-over-year.
- Net income and corresponding basic EPS rose sharply.
- Free cash flow pre tax was well back in a positive range as both seg-ments showed sharp improvements year-over-year.
- During the quarter, provisions for pensions and similar obligations decreased from €1,026m as of December 31, 2020 to €906m as of March 31, 2021 mainly due to higher discount rate assumptions.
- Orders in the GP segment were clearly down compared to prior-year quarter. The decline was predominantly in the EMEA reporting re-gion (Europe, Commonwealth of Independent States, the Middle East and Africa). On a comparable basis, orders at GP declined by 1.8%. The order development was supported by growth at Transmis-sion.
- Revenue was clearly down compared to the strong prior-year quarter, mainly due to negative currency translation effects and the lower or-der intake in previous quarters.
- Service revenue also clearly decreased year-over-year but less than revenue overall.
- Book-to-bill ratio of GP continued to be on a strong level with 1.21, resulting in an order backlog at quarter-end of €50.5bn, well above prior quarter-end.
- Adjusted EBITA was nearly on prior-year quarter’s level held back by lower revenue. Both quarters benefited from net positive one-time effects from projects and other items. Recent quarter included major effects in connection with a customer settlement and with a project termination. Adjusted EBITA margin was above prior-year quarter’s level supported by operational improvements.
- The impacts from special items decreased compared to prior-year quarter as higher restructuring costs were more than offset by a pos-itive one-time effect related to aeroderivative gas turbines written-off in the prior fiscal year (reported under strategic portfolio deci-sions).
- Adjusted EBITA margin before special items increased year-over-year.
- Free cash flow pre tax was sharply above prior-year quarter’s level mainly due to higher project-related cash inflows.
- Execution of the competitiveness program continues to support Sie-mens Energy’s transformation, which is expected to have impacts on Adjusted EBITA in the second half predominantly reported within special items.
- Orders rose sharply in comparison to Q2 FY 2020 as a result of large orders. The increase was predominant in the EMEA reporting region, where orders nearly quadrupled year-over-year, including three large orders worth approximately €2.8bn for offshore wind farms includ-ing service in the United Kingdom, the Netherlands and France. Or-der intake in the recent quarter and the trend year-over-year reflects the volatility of the offshore market, which affected order intake not only for wind turbines but also in service.
- The clear revenue increase was broad-based with the service busi-ness contributing the highest percentage growth.
- Book-to-bill ratio of SGRE was especially strong at 2.35, increasing order backlog to €33.7bn.
- Adjusted EBITA was back in a positive range compared to prior-year quarter. Q2 FY 2020 was impacted by negative effects related to the COVID-19 pandemic, the slowdown in the Indian market and execu-tion challenges in the Northern European projects. The profitability was supported by a solid operational performance in the WTG (Wind Turbine Generator) and the service businesses and a reassessment of the marketability of inventories.
- Adjusted EBITA before special items and the corresponding margin rose sharply.
- Free cash flow pre tax improved sharply year-over-year mainly sup-ported by stringent asset management.
The line item Reconciliation to Consolidated Financial Statements in-cludes items which management does not consider to be indicative of the segments’ performance – mainly Real Estate Services, centrally car-ried pension expense, Treasury activities, eliminations as well as other central items.
Against the background of the business development in the first half of the fiscal year coupled with greater visibility on the remainder of the fiscal year, we refine our outlook for the nominal revenue growth for Siemens Energy and both segments. Our original outlook included a wider range for the expected growth rate reflecting a high level of uncertainty at that time regarding factors, amongst others, the global COVID-19 pandemic.
We now expect the nominal revenue growth rate for Siemens Energy in fiscal year 2021 to be in the range of 3% to 8% (previously 2% to 12%). Unchanged, we expect an Adjusted EBITA margin before special items of 3% to 5%, a sharp increase in Net income and a sharp decrease of Free cash flow pre tax.
For our GP segment in fiscal year 2021 we now expect nominal revenue growth to be in the range of 2% to 6% (previously 2% to 11%). Adjusted EBITA margin before special items is anticipated unchanged between 3.5% and 5.5%.
For our SGRE segment we now expect nominal revenue growth in the range of 8% to 11% (previously 8% to 18%). Adjusted EBITA margin before special items is expected to be unchanged in a range of 3% to 5% in fiscal year 2021.
We continue to expect global macroeconomic development to remain subdued for the remaining fiscal year 2021, with risks particularly related to geopolitical and geoeconomic uncertainties. Our markets tend to have a limited effect to economic cycles and our businesses, especially our service business, is characterized by a high level of resilience.
This guidance continues to assume limited financial impact from COVID-19 during fiscal year 2021. Nevertheless, we observe with concern the resurgence of the global COVID-19 pandemic and measures imposed by authorities. We continue to monitor the pandemic situation and evaluate appropriate measures as it pertains to our guidance.
This outlook excludes charges related to legal and regulatory matters.
Siemens Energy Global GmbH & Co. KG
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