Earnings Release Q2 FY 2024: Siemens Energy benefits from positive market environment and delivers another solid quarter. Adjusted outlook reflects stronger growth and positive cash development. 

Due to the business performance in the first half-year, we raised the outlook for the fiscal year 2024 for Siemens Energy. The new forecast is based on adjusted revenue growth assumptions for all segments and higher Profit assumptions for Grid Technologies. In the first half of the fiscal year,  the product and service businesses in the Grid Technologies and Transformation of Industry segments performed better than expected driven by strong market demand. For Siemens Gamesa, we expect a revenue development in the second half of the fiscal year substantially exceeding the first half-year, especially driven by the continuous ramp-up in the offshore area. In terms of Free cash flow pre tax, we expect all segments to exceed original expectations excluding Siemens Gamesa. This is particularly applicable for Gas Services and Grid Technologies, which both are to experience strong cash inflows driven by customer payments related to a continuing orders momentum. 

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 between negative 1% and positive 1% (previously between negative 2% and positive 1%). Unchanged, we expect a Net income of up to €1bn including impacts from disposals and the acceleration of the portfolio transformation. Furthermore, we now expect a positive Free cash flow pre tax up to €1.0bn (previously a negative Free cash flow pre tax of around €1.0bn). We now expect proceeds for the whole fiscal year around positive €3.0bn (previously in a range of positive €2.5bn to €3.0bn) from disposals and the acceleration of the portfolio transformation. 

The outlook for Siemens Energy does not include charges related to legal and regulatory matters. 

Amended overall assumptions per business area 

• Gas Services now assumes a comparable revenue growth of negative 2% to 0% (previously negative 4% to 0%) and a Profit margin before special items of 9% to 11% (unchanged). 
• Grid Technologies now plans to achieve a comparable revenue growth of 32% to 34% (previously 18% to 22%) and a Profit margin before special items between 8% and 10% (previously between 7% and 9%). 
• Transformation of Industry now expects a comparable revenue growth of 14% to 16% (previously 8% to 12%) and a Profit margin before special items of 5% to 7% (unchanged). 
• Siemens Gamesa now assumes a comparable revenue growth of 10% to 12% (previously 0% to positive 4%) and a negative Profit before special items of around €2bn (unchanged). 

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.