Strong demand delivers record high for order backlog –
focus on energy businesses
»After a powerful finish in fiscal 2019, the first quarter started slowly as expected. The weak performance across our energy
businesses reinforces our priorities. We confirm our full-year guidance and will list Siemens Energy on the stock exchange in
September as planned. This is a major milestone in positioning Siemens for the future,« said Joe Kaeser, President and Chief
Executive Officer of Siemens AG.
. Orders at €24.8 billion, down 2% from the strong prior-year level as sharply lower volume from large orders in Mobility more
than offset increases in the majority of industrial businesses, particularly in Siemens Gamesa Renewable Energy (SGRE);
revenue rose 1%, to €20.3 billion
. On a comparable basis, excluding currency translation and portfolio effects, orders declined 4% and revenue was down 1%;
the book-to-bill ratio was a strong 1.22 and the order backlog reached a new high at €149 billion
. Adjusted EBITA Industrial Businesses declined to €1.4 billion, due mainly to a loss in SGRE and market weakness for short-cycle
businesses; Adjusted EBITA margin Industrial Businesses was 7.3%, held back by €0.2 billion in severance charges, which
reduced Adjusted EBITA margin Industrial Businesses by 1.0 percentage points
. Net income declined 3% to €1.1 billion and included substantially better results outside Industrial Businesses compared to Q1
FY 2019; basic earnings per share (EPS) rose 6% to €1.33

Beginning with fiscal 2020, Siemens adopted IFRS 16, Leases, by applying the modified retrospective approach, i.e. prior-period
amounts are not adjusted. For further information, see Note 2 in B.6 Notes to Consolidated Financial Statements of our Annual
Report 2019.
Also beginning with fiscal 2020, several businesses formerly included in Portfolio Companies, Smart Infrastructure and Corporate
Items were transferred to Gas and Power. Prior-period amounts are presented on a comparable basis. For further information, see
A.3 Segment Information of the Combined Management Report of our Annual Report 2019.

Siemens Q1 % Change
(in millions of €) FY 2020 FY 2019 Actual Comp.
Orders 24,759 25,172 (2)% (4)%
Revenue 20,317 20,116 1% (1)%
Adjusted EBITA
Industrial Businesses 1,429 2,044 (30)%
therein: severance (193) (73)
Adjusted EBITA margin
Industrial Businesses 7.3% 10.5%
excl. severance 8.3% 10.9%
Income from continuing
operations 1,088 1,118 (3)%
therein: severance (213) (102)
Net income 1,089 1,118 (3)%
Basic earnings per share
(in €) 1.33 1.26 6%
Free cash flow
(continuing and discontinued operations) 44 (337) n/a
ROCE
(continuing and discontinued operations) 7.9% 9.5%

? Continued strong order intake, only slightly below the very high
basis of comparison in Q1 FY 2019; sharp growth in SGRE due to
several large orders for offshore wind-farms including service,
along with significant growth in Siemens Healthineers; declines
in Mobility and Gas and Power which in Q1 FY 2019 both posted
sharply higher volumes from large orders; excluding the net
change in large order volume, orders rose clearly
? Clear revenue growth in Siemens Healthineers and Smart
Infrastructure, partially offset by a significant decline in SGRE
? Strong book-to-bill ratio of 1.22; order backlog at a new high of
€149 billion
? Currency translation effects added two percentage points each to
order and revenue development; portfolio effects had a minimal
effect on volume development year-over-year
? Despite substantial improvement at Smart Infrastructure, lower
Adjusted EBITA Industrial Businesses due mainly to SGRE, which
posted a loss on substantial negative effects related to project
delays; and a decline at Digital Industries, driven by the current
downturn in short-cycle industries and sharply higher severance
charges
? Substantially better results outside Industrial Businesses, most
notably in Real Estate Services due to a €219 million gain from
the transfer of an investment to Siemens Pension Trust e.V.; in
Financial Services due to a sale of an equity investment; and
from Corporate Treasury activities
? Net income: substantially lower income tax rate year-over-year
due mainly to a positive effect from a retroactive statutory tax
rate reduction and the largely tax-free gain from the abovementioned transfer of an investment to Siemens Pension Trust
e.V.
? Higher Free cash flow from Industrial Businesses, at €863 million
compared to €595 million in Q1 FY 2019 which included
negative Free cash flow from SGRE; Free cash flow for the Group
benefited in the current period from the adoption of IFRS 16,
which had a positive effect of approx. €0.2 billion
? Provisions for pensions and similar obligations as of December
31, 2019: €8.6 billion (September 30, 2019: €9.9 billion);
decreased mainly due to higher discount rate assumptions and
contributions, including the above-mentioned transfer of an
investment to Siemens Pension Trust e.V., which strengthened
Siemens’ pension assets and further safeguards the postemployment benefits of employees
? ROCE declined on a combination of a significant increase in
average capital employed, resulting in part from the adoption of
IFRS 16 which increased lease liabilities, and lower net income

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