Earnings Release Q2 FY 2023: Strong orders, substantially higher revenue, positive Profit before Special items held back by Siemens Gamesa

Due to the financial performance in the first half-year and business volume growing faster than previously planned, we amended the outlook for the fiscal year 2023 for Siemens Energy. The new forecast is based on higher revenue growth assumptions for all segments. Profit assumptions for the GS, GT and TI segments remain unchanged. In the first half of the fiscal year, GT was well in its anticipated range which is expected to continue while GS and TI outperformed partly benefiting from positive nonrecurring effects. For Siemens Gamesa the situation remains volatile. However, we expect an improvement in the second half of the fiscal year but not compensating the weak first half. Siemens Gamesa continues to focus on managing operational problems and the turnaround, primarily through the rigorous execution of the “Mistral” program. The performance of Siemens Gamesa throughout the fiscal year 2023 will also depend on the timely ramp-up of the offshore activities.

Therefore, we now expect Siemens Energy to achieve a comparable revenue growth (excluding currency translation and portfolio effects) in a range of 10% to 12% (previously between 3% and 7%). Profit margin before Special items is now expected around the low end of the guidance range of 1% to 3% due to Siemens Gamesa's poor performance in the first half-year. Accordingly, Net loss of Siemens Energy Group is expected to exceed prior fiscal year’s level of €712m by up to a low-triple-digit million € amount (previously to be on prior fiscal year’s reported level). We confirm previous quarter’s guidance of a positive Free cash flow pre tax up to a low triple-digit million € amount for fiscal year 2023.

The outlook for Siemens Energy assumes no major negative financial impacts from COVID-19 or other pandemic related events, no further deterioration in the supply chain and raw material cost environment, and excludes charges related to legal and regulatory matters. The outlook is based on the following overall assumptions for the segments:

• GS now plans to achieve a comparable revenue growth of 10% to 12% (previously between 0% and 4%). The targeted Profit margin before Special items remains between 9% and 11% (unchanged).
• GT now plans to achieve a comparable revenue growth of 12% to 14% (previously between 5% and 9%). The targeted Profit margin before Special items remains between 6% and 8% (unchanged).
• TI now plans to achieve a comparable revenue growth of 8% to 10% (previously between 5% and 9%). The targeted Profit margin before Special items remains between 3% and 5% (unchanged).
• Siemens Gamesa plans to achieve a comparable revenue growth of 6% to 10% for the fiscal year 2023 and to reach a Profit margin before Special items towards negative 11%.

This document contains statements related to our future business and financial performance, and future events or developments involving Siemens Energy that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. We may also make forward-looking statements in other reports, prospectuses, in presentations, in 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 Energy´s management, of which many are beyond Siemens Energy´s control. These are subject to a number of risks, uncertainties, and other factors, including, but not limited to, those described in disclosures, in particular in the chapter “Report on expected developments and associated material opportunities and risks” in the Annual Report. Should one or more of these risks or uncertainties materialize, should acts of force majeure, such as pandemics, occur, or should underlying expectations including future events occur at a later date or not at all, or should assumptions not be met, Siemens Energy´s actual results, performance, or achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens Energy neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. This document includes supplemental financial measures – that are not clearly defined in the applicable financial reporting framework – and that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens Energy´s net assets and financial position or results of operations as presented in accordance with the applicable financial reporting framework in its consolidated financial statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.