Siemens Healthineers
Half-Year Financial Report
First half of fiscal year 2024
siemens-healthineers.com
Table of contents
A. Interim group | B. Half-year | C. Additional | ||||
management | consolidated | information | ||||
report | financial | |||||
statements | ||||||
Page 3 | Page 13 | Page 29 | ||||
A.1 | B.1 | Consolidated statements of | C.1 Responsibility statement | |||
income | ||||||
Page 7 | Page 14 | Page 30 | ||||
A.2 | B.2 | Consolidated statements of | C.2 Review report | |||
comprehensive income | ||||||
Page 11 | Page 15 | Page 31 | ||||
A.3 | Outlook | B.3 | Consolidated statements of | C.3 Notes and forward-looking | ||
financial position | statements | |||||
Page 12 | Page 16 | |||||
A.4 | Risks and opportunities | B.4 | Consolidated statements of | |||
cash flows |
Page 17
B.5 Consolidated statements of changes in equity
Page 18
B.6 Notes to half-year consolidated financial statements
Introduction
Siemens Healthineers AG's Half-Year Financial Report complies with the applicable legal requirements of the German Securities Trading Act ("Wertpapierhandelsgesetz") and comprises condensed half-year consolidated financial statements, an interim group management report and a responsibility statement in accordance with Section 115 of the German Securities Trading Act.
The Half-Year Financial Report should be read in conjunction with the Annual Report for fiscal year 2023.
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Siemens Healthineers Half-Year Financial Report 2024
Interim group management report - Results of operations
A. Interim group management report
A.1 Results of operations
A.1.1 Revenue by segment and region
First half | First half | %-Change | %-Change | |
(in millions of €)¹ | 2024 | 2023 | Act. | Comp.² |
Siemens Healthineers | 10,611 | 10,423 | 1.8% | 4.3% |
Therein: | ||||
Imaging | 5,748 | 5,654 | 1.7% | 3.9% |
Diagnostics | 2,162 | 2,228 | −3.0% | −0.3% |
Varian | 1,821 | 1,704 | 6.9% | 8.9% |
Advanced Therapies | 1,001 | 972 | 3.0% | 6.5% |
- Siemens Healthineers: revenue according to IFRS, segments: total adjusted revenue.
- Year-over-yearon a comparable basis, excluding effects in line with revaluation of contract liabilities from IFRS 3 purchase price allocations as well as currency translation and portfolio effects.
Revenue by region (location of customer)
First half | First half | %-Change | %-Change | |
(in millions of €) | 2024 | 2023 | Act. | Comp.¹ |
Europe, C.I.S., Africa, Middle East (EMEA) | 3,604 | 3,316 | 8.7% | 9.4% |
Therein: Germany | 533 | 493 | 8.1% | 8.1% |
Americas | 4,326 | 4,197 | 3.1% | 4.5% |
Therein: United States | 3,653 | 3,561 | 2.6% | 4.5% |
Asia Pacific Japan² | 1,429 | 1,517 | −5.8% | 0.7% |
China | 1,252 | 1,392 | −10.0% | −4.5% |
Siemens Healthineers | 10,611 | 10,423 | 1.8% | 4.3% |
- Year-over-yearon a comparable basis, excluding effects in line with revaluation of contract liabilities from IFRS 3 purchase price allocations as well as currency translation and portfolio effects.
- Including India.
Siemens Healthineers
Revenue increased by 4.3% on a comparable basis compared to the prior-year period. Excluding revenue from rapid COVID-19 antigen tests which ended in the fourth quarter of fiscal year 2023, comparable growth was 5.0%. This was driven by very strong growth in the Varian segment, strong growth in the Advanced Therapies segment and moderate growth in the Imaging segment. The Diagnostics segment showed flat revenue development. Excluding the now-ended rapid antigen-test business, comparable revenue increased moderately for the Diagnostics segment. On a nominal basis, revenue increased by 1.8% to €10,611 million. Currency translation effects had a negative impact of around 3 percentage points on revenue growth. The equipment book-to- bill ratio was a very good 1.11 in the first half, slightly below the prior-year figure, which was also very good, at 1.17.
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Siemens Healthineers Half-Year Financial Report 2024
Interim group management report - Results of operations
Segments
Adjusted revenue in Imaging rose by 3.9% on a comparable basis relative to the very strong prior-year period. Molecular Imaging and Magnetic Resonance in particular showed very strong growth. From a geographical perspective, comparable revenue growth was significant in EMEA and moderate in the Americas region. The region Asia Pacific Japan showed slight comparable revenue growth. In the China region, revenue decreased by a high single-digit percentage after very strong revenue development in the prior-year period. Temporarily delayed customer orders in the China region in preceding quarters had a negative effect on revenue in the first half of fiscal year 2024. On a nominal basis, adjusted revenue rose by 1.7% to €5,748 million.
The Diagnostics segment showed flat revenue development with an adjusted revenue decline of 0.3% on a comparable basis. Excluding the rapid COVID-19 antigen test business, which no longer generated revenue in the first half of fiscal year 2024 (prior-year period: €67 million), adjusted revenue increased by 2.8%. While EMEA recorded strong growth and the Americas region posted slight comparable growth, revenue in the China region decreased moderately. Against the backdrop of sharp growth due to higher revenue from rapid COVID-19 antigen tests in the prior-year period, the Asia Pacific Japan region showed a low double-digit comparable revenue decline. On a nominal basis, adjusted revenue decreased by 3.0% to €2,162 million.
Varian's adjusted revenue increased by 8.9% on a comparable basis above the significant revenue growth in the prior-year period. From a geographical perspective, the Asia Pacific Japan region in particular recorded significant growth. While the Americas region reported very strong comparable revenue growth after significant revenue development in the prior-year period, comparable revenue in the China and EMEA regions showed strong growth. On a nominal basis, adjusted revenue rose by 6.9% to €1,821 million.
Adjusted revenue at Advanced Therapies increased by 6.5% on a comparable basis. The Americas and Asia Pacific Japan regions recorded very strong growth and EMEA recorded strong comparable revenue growth. Against the backdrop of sharp revenue development in the prior-year period and due to temporarily delayed customer orders in preceding quarters, revenue in the China region decreased slightly on a comparable basis. On a nominal basis, adjusted revenue rose by 3.0% to €1,001 million.
Regions
In the EMEA region, revenue increased by 9.4% on a comparable basis. In particular, the Imaging segment showed significant growth. Advanced Therapies, Diagnostics and Varian achieved strong revenue development.
Germany reported revenue growth of 8.1% on a comparable basis, mainly because of sharp growth in the Varian business and significant growth in Imaging. While Advanced Therapies showed moderate comparable revenue growth, a mid single-digit revenue decline at Diagnostics had the opposite effect.
The Americas region and within it, the United States, each recorded comparable revenue growth of 4.5%, driven by very strong revenue developments in the Varian and Advanced Therapies segments. Imaging in the Americas region, as well as in the United States, achieved moderate growth, and Diagnostics recorded slight revenue growth on a comparable basis.
In the Asia Pacific Japan region, revenue rose by 0.7% on a comparable basis. Excluding the now-ended rapid COVID-19 antigen test business, the region recorded moderate comparable revenue growth. The Varian segment contributed significant growth, Advanced Therapies achieved very strong growth and Imaging slight growth. Against sharp growth in the prior-year period driven by high contributions from rapid COVID-19 antigen tests, Diagnostics reported a low double-digit revenue decline on a comparable basis.
Against the backdrop of very strong comparable revenue growth in the prior-year period, revenue in the China region declined by 4.5% on a comparable basis. This was mainly related to a high single-digit revenue decrease in the Imaging segment as well as to moderate and slight revenue declines in the Diagnostics and Advanced Therapies segments respectively. This was mainly due to the above mentioned temporarily delayed customer orders in preceding quarters. Varian in contrast achieved strong comparable revenue growth after an already very strong prior-year period.
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Siemens Healthineers Half-Year Financial Report 2024
Interim group management report - Results of operations
A.1.2 Adjusted EBIT
First half | First half | |
(Adjusted EBIT in millions of €, margin in %) | 2024 | 2023 |
Adjusted EBIT Siemens Healthineers | 1,564 | 1.449¹ |
Therein: | ||
Imaging | 1,131 | 1.202¹ |
Diagnostics | 99 | −23¹ |
Varian | 295 | 246 |
Advanced Therapies | 153 | 139 |
Adjusted EBIT margin Siemens Healthineers | 14.7% | 13.9%¹ |
Therein: | ||
Imaging | 19.7% | 21.3%¹ |
Diagnostics | 4.6% | −1.0%¹ |
Varian | 16.2% | 14.5% |
Advanced Therapies | 15.3% | 14.3% |
1 Comparable based on the definition of adjustments effective October 1, 2023.
Siemens Healthineers
In the first half of fiscal year 2024, adjusted EBIT increased by 8% from the prior-year period, to €1,564 million. The adjusted EBIT margin of 14.7% was above the prior-year level of 13.9%. The main reasons were cost reductions related to the transformation program of the Diagnostics business along with contributions from revenue growth. A temporary unfavorable business mix compared to the prior-year period, and now-ended contributions from the rapid COVID-19antigen-test business, which ended in the fourth quarter of fiscal year 2023, had a slightly negative impact.
Adjusted EBIT was affected by €34 million or around 4% higher research and development expenses. Adjusted for currency translation, research and development expenses rose strongly from the prior-year level. Research and development intensity was around 9% and on the level of the prior-year period.
Adjusted EBIT was affected by €54 million or around 3% higher selling and general administrative expenses. Adjusted for currency translation, these expenses rose strongly compared to the prior-year level.
Segments
The adjusted EBIT margin of 19.7% in the Imaging segment was below the prior-year level due to a less favorable business mix year-on-year as well as lower absolute profit conversion from below average revenue growth. Adjusted EBIT decreased to €1,131 million.
In Diagnostics, the adjusted EBIT margin of 4.6% was clearly above the prior-year level of -1.0%. This was mainly driven by cost reductions related to the transformation program of the Diagnostics business. Furthermore, there was a positive effect from the longer useful life of leased-out laboratory analyzers as well as from contributions from revenue conversion. In contrast, now- ended contributions from the rapid COVID-19antigen-test business, which ended in the fourth quarter of fiscal year 2023, had a negative impact compared to the prior-year period. Adjusted EBIT rose to €99 million.
The Varian segment's adjusted EBIT margin of 16.2% was above the prior-year level of 14.5% due to very strong revenue growth. Adjusted EBIT increased to €295 million.
The Advanced Therapies segment's adjusted EBIT margin rose to 15.3%, above the prior-year level of 14.3%, driven by strong revenue growth. Compared to the prior-year period, negative currency effects were more than offset by positive effects from focusing the endovascular robotics solution exclusively on neurovascular interventions. Adjusted EBIT rose to €153 million.
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Siemens Healthineers Half-Year Financial Report 2024
Interim group management report - Results of operations
Reconciliation to net income
First half | First half | |
(in millions of €) | 2024 | 2023 |
Adjusted EBIT | 1,564 | 1,449¹ |
Amortization, depreciation and other effects from IFRS 3 purchase price allocation adjustments | −191 | −208 |
Transaction, integration, retention and carve-out costs | −11 | −16 |
Gains and losses from divestments | ‐ | ‐ |
Severance charges | −54 | −66 |
Expenses for other portfolio-related measures | ‐ | −329² |
Other restructuring expenses | −126 | −121¹ |
Total adjustments | −381 | −740¹ |
EBIT | 1,182 | 709 |
Financial income, net | −99 | −72 |
Income before income taxes | 1,084 | 637 |
Income tax expenses | −221 | −103 |
Net income | 863 | 534 |
- Comparable based on the definition of adjustments effective October 1, 2023.
- Including expenses for impairment of other intangible assets in the amount of €244 million.
The line item amortization, depreciation and other effects from IFRS 3 purchase price allocation adjustments declined slightly to €191 million.
Severance charges decreased by €12 million to €54 million and were comprised mainly of severance charges in connection with the transformation of the Diagnostics segment.
In the first half of fiscal year 2024, there were no expenses for other portfolio-related measures. In the prior-year period, expenses for other portfolio-related measures of €329 million had a negative effect. This was due to focusing the endovascular robotics solution exclusively on neurovascular interventions in the Advanced Therapies segment.
Other restructuring expenses rose to €126 million, which, as in the prior-year period, were mainly related to the transformation of the Diagnostics segment.
Financial income, net decreased by €27 million to a negative €99 million. Higher interest expenses were partially offset by a positive change in the fair market valuation of an investment in a listed company.
Income tax expenses increased by €118 million. The effective income tax rate was a low 20.4%, positively impacted by the disappearance of tax risks in the first half of fiscal year 2024, compared to a low 16.2% in the prior-year period. The prior-year period was particularly affected by the release of a tax provision. Both effects were in the mid double-digit millions of euros.
As a result of the developments described above, net income increased by 62% to €863 million.
Reconciliation to basic earnings per share
First half | First half | |
(in €) | 2024 | 2023 |
Basic earnings per share | 0.77 | 0.47 |
Amortization, depreciation and other effects from IFRS 3 purchase price allocation adjustments | 0.17 | 0.19 |
Transaction, integration, retention and carve-out costs | 0.01 | 0.01 |
Gains and losses from divestments | 0.00 | −0.00 |
Severance charges | 0.05 | 0.06 |
Expenses for other portfolio-related measures | ‐ | 0.29 |
Other restructuring expenses | 0.11 | 0.11² |
Transaction-related costs within financial income | ‐ | ‐ |
Tax effects on adjustments¹ | −0.07 | −0.11² |
Adjusted basic earnings per share | 1.04 | 1.02² |
- Calculated based on the income tax rate of the respective reporting period.
- Comparable based on the definition of adjustments effective October 1, 2023.
Adjusted basic earnings per share for the first half of fiscal year 2024 was at €1.04 slightly above the prior-year level of €1.02.
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Siemens Healthineers Half-Year Financial Report 2024
Interim group management report - Net assets and financial position
A.2 Net assets and financial position
A.2.1 Net assets and capital structure
Mar 31, | Sept 30, | |
(in millions of €) | 2024 | 2023 |
Operating net working capital | 4,841 | 4,598 |
Remaining current assets | 1,301 | 1,115 |
Remaining non-current assets | 31,168 | 31,516 |
Net debt (including pensions) | −13,742 | −13,667 |
Remaining current liabilities | −2,668 | −3,116 |
Remaining non-current liabilities | −2,225 | −2,313 |
Total equity | 18,676 | 18,133 |
Material developments in the first half of the current fiscal year within net assets and capital structure are described below.
Operating net working capital
Mar 31, | Sept 30, | |
(in millions of €) | 2024 | 2023 |
Trade and other receivables | 4,280 | 4,492 |
Contract assets | 1,670 | 1,629 |
Inventories | 4,636 | 4,294 |
Trade payables | −2,022 | −2,203 |
Contract liabilities | −3,729 | −3,627 |
Receivables from and payables to the Siemens Group from operating activities | 6 | 12 |
Operating net working capital | 4,841 | 4,598 |
Operating net working capital increased by €243 million to €4,841 million, slightly above the level of the previous balance sheet date, despite negative effects from currency translation.
This is mainly due to an increase of €342 million in inventories, attributed to a build-up in preparation for stronger business development in the second half of fiscal year 2024, mainly in the Imaging and Varian segments, as well as in connection with long-term sourcing of critical materials. The decrease in trade and other receivables by €211 million, partly due to currency translation, had an offsetting effect. Trade payables decreased by €181 million, particularly in the Imaging segment.
Remaining current assets
Mar 31, | Sept 30, | |
(in millions of €) | 2024 | 2023 |
Other current financial assets¹ | 315 | 224 |
Current income tax assets | 262 | 244 |
Other current assets | 713 | 645 |
Remaining current receivables from the Siemens Group | 11 | 2 |
Remaining current assets | 1,301 | 1,115 |
1 Excluding fair value of forwards for hedging of foreign currency liabilities from financing activities.
The increase of €186 million to €1,301 million in remaining current assets was due primarily to an increase in other current financial assets. This was influenced mainly by the change in the fair market valuation of an investment in a listed company for which an external investor has entered into a definitive agreement to acquire the company. Secondly, other current assets increased mainly due to accruals for advanced payments.
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Siemens Healthineers Half-Year Financial Report 2024
Interim group management report - Net assets and financial position
Remaining non-current assets
Mar 31, | Sept 30, | |
(in millions of €) | 2024 | 2023 |
Goodwill | 17,906 | 18,118 |
Other intangible assets | 7,434 | 7,726 |
Property, plant and equipment | 4,217 | 4,210 |
Investments accounted for using the equity method | 32 | 35 |
Other financial assets¹ | 529 | 530 |
Deferred tax assets | 551 | 416 |
Other non-current assets | 499 | 480 |
Remaining non-current assets | 31,168 | 31,516 |
1 Excluding fair value of forwards for hedging of foreign currency liabilities from financing activities.
Remaining non-current assets decreased by €348 million to €31,168 million. Therein, currency translation effects had a negative impact, particularly in the line items goodwill and other intangible assets. This was partly offset by an increase in deferred tax assets of €135 million to €551 million, mainly due to R&D expenses in the U.S., which were capitalized for tax purposes.
Net debt (including pensions)
Mar 31, | Sept 30, | |
(in millions of €) | 2024 | 2023 |
Cash and cash equivalents¹ | −2,305 | −2,247 |
Current receivables from the Siemens Group from financing activities¹ | −19 | −16 |
Non-current receivables from the Siemens Group from financing activities | ‐ | −2 |
Current liabilities to the Siemens Group from financing activities | 2,067 | 4,197 |
Non-current liabilities to the Siemens Group from financing activities | 13,594 | 11,821 |
Fair value of forwards for hedging of foreign currency liabilities from financing activities | −832 | −1,260 |
Short-term financial debt and current maturities of long-term financial debt | 226 | 198 |
Long-term financial debt | 444 | 437 |
Net debt | 13,174 | 13,128 |
Provisions for pensions and similar obligations | 568 | 539 |
Net debt (including pensions) | 13,742 | 13,667 |
1 Prior-year value includes retrospective adjustment due to the change in the composition of cash and cash equivalents. For further information, please refer to Note 2 Accounting policies.
The line items cash and cash equivalents, and current receivables from and current liabilities to the Siemens Group from financing activities, particularly include, in addition to current loans, our cash pooling with the Siemens Group. Changes were attributable to income and expenditures from operations and to short-term investment or borrowing of liquidity. Together with the credit facilities, these line items collectively make up the Company's funds available at short notice.
As of the reporting date, net debt amounted to €13,174 million, €46 million above the level of September 30, 2023.
Along with currency translation effects related to U.S. dollar loans, the changes in current and non-current liabilities to the Siemens Group from financing activities resulted particularly from the following activities:
In the reporting period, two loans from the Siemens Group in a total amount of US$2.5 billion were repaid. In return, the Siemens Group provided the following additional loans:
- €0.5 billion, maturing in fiscal year 2025,
- €0.5 billion, maturing in fiscal year 2028,
- €0.6 billion, maturing in fiscal year 2029,
- €0.5 billion, maturing in fiscal year 2030.
Furthermore, the fair value of forward contracts for hedging of foreign currency liabilities from financing activities decreased by €428 million. These derivatives were entered into to hedge the foreign currency risks of loans denominated in U.S. dollars.
As of March 31, 2024, the two multicurrency revolving credit facilities of up to a total of €4.5 billion granted by the Siemens Group were utilized in an amount of €1,013 million (September 30, 2023: €1,267 million).
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Siemens Healthineers Half-Year Financial Report 2024
Interim group management report - Net assets and financial position
Remaining current liabilities
Mar 31, | Sept 30, | |
(in millions of €) | 2024 | 2023 |
Other current financial liabilities¹ | 228 | 252 |
Current provisions | 402 | 409 |
Current income tax liabilities | 371 | 462 |
Other current liabilities | 1,651 | 1,990 |
Remaining current liabilities to the Siemens Group | 16 | 2 |
Remaining current liabilities | 2,668 | 3,116 |
1 Excluding fair value of forwards for hedging of foreign currency liabilities from financing activities.
Remaining current liabilities declined by €448 million to €2,668 million, primarily due to the decrease of other current liabilities by €339 million. This is mainly a result of the pro-rata accumulation of performance-related remuneration components. In addition, current income tax liabilities decreased by €92 million, particularly in connection with the payment of income taxes from the prior fiscal year.
Remaining non-current liabilities
Mar 31, | Sept 30, | |
(in millions of €) | 2024 | 2023 |
Deferred tax liabilities | 1,572 | 1,663 |
Non-current provisions | 153 | 172 |
Other non-current financial liabilities¹ | 33 | 29 |
Other non-current liabilities | 467 | 450 |
Remaining non-current liabilities | 2,225 | 2,313 |
1 Excluding fair value of forwards for hedging of foreign currency liabilities from financing activities.
Remaining non-current liabilities declined by €88 million to €2,225 million. This was primarily because of a decline in deferred tax liabilities of €91 million due to increased netting opportunities of deferred tax assets and deferred tax liabilities.
Total equity
Mar 31, | Sept 30, | |
(in millions of €) | 2024 | 2023 |
Issued capital | 1,128 | 1,128 |
Capital reserve | 15,813 | 15,839 |
Retained earnings | 2,206 | 1,381 |
Other components of equity | −45 | 339 |
Treasury shares | −468 | −607 |
Total equity attributable to shareholders of Siemens Healthineers AG | 18,634 | 18,081 |
Non-controlling interests | 42 | 52 |
Total equity | 18,676 | 18,133 |
Equity increased by €543 million to €18,676 million. The increase in retained earnings of €825 million is mainly due to the net income of €863 million for the first half of fiscal year 2024. Furthermore, other components of equity decreased by €385 million, mainly as a result of currency translation differences. The increase in the cost of hedging reserve associated with foreign currency loans had an offsetting effect. To fulfill share-based payment programs based on shares of Siemens Healthineers AG, treasury shares were transferred to plan participants in the first half year of fiscal year 2024, while no treasury shares were repurchased due to the fully completed share buyback program in fiscal year 2023. Thus, treasury shares decreased by
€139 million to €468 million.
For further details regarding equity, please see Note 5 Equity in the notes to the half-year consolidated financial statements.
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Siemens Healthineers Half-Year Financial Report 2024
Interim group management report - Net assets and financial position
A.2.2 Cash flows
First half | First half | |
(in millions of €) | 2024 | 2023 |
Net income | 863 | 534 |
Change in operating net working capital | −278 | −357 |
Other reconciling items to cash flows from operating activities | 71 | 667 |
Cash flows from operating activities | 656 | 844 |
Cash flows from investing activities | −332 | −402 |
Cash flows from financing activities¹ | −231 | −133 |
1 Prior-year value includes retrospective adjustment due to the change in the composition of cash and cash equivalents. For further information, please refer to Note 2 Accounting policies.
Operating activities
Cash inflows from operating activities decreased by €188 million from the prior-year period to €656 million. The impact on cash flows from operating activities from the change in operating net working capital was €79 million less than in the prior-year period. This resulted largely from a lower increase in inventories and contract assets relative to the prior-year period. This was partly offset by a lower increase in contract liabilities and a stronger reduction of trade payables. The decrease of €596 million in other reconciling items to cash flows from operating activities was mainly related to lower depreciation. The prior-year period included an impairment in connection with the focusing of the endovascular robotics solution exclusively on vascular interventions in neurology, and the associated withdrawal from the endovascular cardiology business. Furthermore, payments for performance-related remuneration components, which were higher than in the prior-year period, had a negative impact on other reconciling items to cash flows from operating activities.
Investing activities
Cash outflows from investing activities declined by €70 million from the prior-year period to €332 million. This was mainly a result of lower payouts for additions to intangible assets and property, plant and equipment.
Financing activities
In the first half of fiscal year 2024, cash outflows from financing activities amounted to €231 million and were thus €98 million above the level of the prior-year period. This was mainly a result of two opposing effects. On the one hand, net inflows from the change in short-term financial debts and other financing activities provided by the Siemens Group were lower than in the prior-
year period. On the other hand, there were no dividend payouts in the first half of fiscal year 2024, in contrast to the prior-year period, because the Annual Shareholders' Meeting 2024 took place after the first half of the fiscal year.
Free cash flow
Siemens Healthineers reports free cash flow as a supplemental liquidity measure:
First half | First half | |
(in millions of €) | 2024 | 2023 |
Cash flows from operating activities | 656 | 844 |
Additions to intangible assets and property, plant and equipment | −298 | −405 |
Free cash flow | 358 | 439 |
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Siemens Healthineers AG published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 05:18:04 UTC.