Financial Data and Key Metrics Changes - Orders increased to €23.6 billion, a growth of 15%, with a record order intake for mobility and a 9% increase in Smart Infrastructure [6][11] - Revenue grew by 15% to over €19 billion, with Digital Industries, Smart Infrastructure, and Mobility each contributing over 20% [7][8] - Industrial business profit reached €2.6 billion, with an EPS pre PPA of €2.56, excluding a noncash effect from Siemens Energy [13][80] Business Line Data and Key Metrics Changes - Digital Industries (DI) saw a revenue increase of 23%, with automation revenue up by 26% [40][43] - Smart Infrastructure (SI) achieved a revenue growth of 21%, driven by a 34% increase in the electrification business [57][58] - Mobility reported a substantial revenue increase of 33%, with orders at €6.2 billion marking an all-time high [68][69] Market Data and Key Metrics Changes - The overall market growth is expected to average 7% annually until 2027, with a significant contribution from software and digital services [16] - In China, revenue growth was 9%, while Germany and Italy saw increases of 37% and 35%, respectively [53][64] - The U.S. market showed strong performance with double-digit growth in both discrete and process automation [53] Company Strategy and Development Direction - The company aims to leverage its order backlog and execution strength to achieve profitable growth, with a focus on digitalization and sustainability [9][16] - Strategic investments will continue in organic growth, targeted acquisitions, and divestments to optimize the portfolio [17][19] - The company is expanding its footprint in the U.S. and Europe, with new facilities and increased capacities [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of fiscal 2023, raising guidance for revenue growth to 9% to 11% and EPS to €9.60 to €9.90 [11][80] - The macroeconomic environment remains volatile, but the company is well-positioned to capitalize on market opportunities [11][80] - Supply chain constraints have eased, allowing for improved capacity utilization and customer deliveries [7][9] Other Important Information - The SaaS transition in Digital Industries is progressing well, with annual recurring revenue growth of 15% [10][29] - The company is focusing on sustainability and digital transformation, with significant investments in cloud and software solutions [30][31] - A joint venture, Cofinity-X, was established to create a collaborative data network in the automotive industry [35] Q&A Session All Questions and Answers Question: TAM growth and market share ambitions - Management confirmed that the total addressable market (TAM) growth is expected to be 7% by 2027, and the company aims to increase its market share [83][85] Question: Siemens Energy stake and capital allocation - Management stated that they are not in a hurry to sell their stake in Siemens Energy and will provide updates in the annual press conference [87][89] Question: Insights on DI orders and automation - Management indicated that software orders have positively impacted DI, while automation orders are expected to normalize in the coming quarters [96][100] Question: Dynamics in China and inventory management - Management noted that the recovery in China is slow, but they expect normalization of backlog and delivery times to improve in the coming months [110][118]
Siemens(SIEGY) - 2023 Q2 - Earnings Call Transcript