Siemens Healthineers financials

Main article: Siemens Healthineers

Business in Russia

Main article: Siemens Healthineers Russia

2021

Revenue of 1.1 billion euros from the sale of rapid tests for COVID-19

At the end of fiscal 2021, Siemens Healthineers raised about 1.1 billion euros from the sale of rapid tests for the coronavirus COVID-19, thanks to which the company was able to demonstrate a record turnover, which grew by 24.5%. If we do not take into account the mentioned tests, then revenue rose by 11.8%, which is also not bad and achieved thanks to the high performance in the departments for the production of solutions for diagnostics, medical imaging and advanced therapy.

We have demonstrated a flexible and prudent response to the pandemic [coronavirus COVID-19 - approx.]. As Zdrav.expert a result, we were able to increase stakes in several markets, "CEO Bernd Montaga said in a statement.

Siemens Healthineers received 1.1 billion euros in a year from the sale of rapid tests for coronavirus

Siemens produces COVID-19 coronavirus tests called Clinitest. Their sensitivity, as indicated on the manufacturer's website, is about 97-98%, depending on how deep the swab was taken in the nose. The test result is issued after 15 minutes.

The test detects the SARS-CoV-2 antigen. Viral antigens are proteins that are part of the virus and carry specific genetic information. The human immune system recognizes these proteins as foreign and triggers immune responses to neutralize and eliminate them. Analysis for SARS-CoV-2 viral antigens allows you to detect the pathogen in the studied biological material of humans.

Antigen tests are most informative at an early stage of the disease when the concentration of the virus in the biomaterial is highest. According to the Interim Methodological Recommendations of the Russian Federation, positive results of tests for the SARS-CoV-2 antigen can be expected at the same stages of the development of the disease as in PCR testing: 2 days before and for 5-7 days after the onset of symptoms.^[1]

Siemens Healthineers sales surge and update record

Siemens Healthineers had revenues of nearly €18bn in fiscal 2021, a record high for the company. In comparison with 2020, sales from the German manufacturer of medical equipment rose by 24.5%, and without taking into account fluctuations in exchange rates, there was a 19.3% rise.

A tangible increase in revenue is associated with the purchase, Varian as well as high revenues from the supply of rapid tests to. coronavirus COVID-19 The latter Siemens generated around €1.1 billion in annual revenue for Healthineers.

Siemens Healthineers sales surge for the year and update record

Most of Siemens Healthineers' turnover still falls on countries in Europe, Africa and the Middle East: in 2021, the company earned 6.78 billion euros there, which is 43% more than a year earlier. In Germany, revenues grew by 100%, to 1.75 billion euros.

In the Americas, annual sales of Siemens Healthineers climbed 13%, topping 6.4 billion euros. USA In they increased by 11%, to 5.47 billion euros. The countries registered Asia Australia a 20 percent growth in turnover, up to 4.82 billion euros, of which almost half (2.35 billion euros) - in. China

In the division for the production of medical imaging equipment in 2021, the financial year had a revenue of 9.5 billion euros against 8.81 billion euros a year earlier. Sales of diagnostic equipment and software rose from 3.92 billion to 5.42 billion euros. In the direction of Advanced Therapies, revenue rose from 1.63 billion to 1.71 billion euros. The reporting also includes the revenue of the previously purchased company Varian - for the year this manufacturer of radiation therapy equipment earned 1.3 billion euros. Varian revenues in 2020 are not indicated for the financial year.

Net profit of Siemens Healthineers at the end of 2021 was 1.75 billion euros, which is 23% higher than profit a year ago.^[2]

2020

Medical Diagnostic Imaging Device Market Share - 24.6%

At the end of 2020, Siemens Healthineers occupied 24.6% of the global market for medical devices for diagnostic imaging (British Evaluate data). Read more here.

Revenue drop due to reduced sales of diagnostic equipment

Siemens Healthineers ended fiscal 2020 with revenue of €14.46 billion, 0.4% less than a year ago of $14.52 billion.

In the direction of Imaging, in which the company develops equipment for computed tomography, fluoroscopy, MRI, mammography, surgical operations, radiotherapy, ultrasound, urology, etc., an annual turnover of 9.09 billion euros was recorded against 8.94 billion euros in the 2019 financial year.

Revenue in the diagnostic solutions division sank 5.1% year-on-year to €3.92 billion. The profitability of this business has decreased due to the large costs of increasing the production of equipment most needed in the context of the COVID-19 coronavirus pandemic.

Siemens Healthineers 2020 revenue falls as diagnostic equipment sales decline

A separate line in the report is the sale of equipment and services related to Advanced Therapies. Revenues here in fiscal 2020 turned out to be equal to 1.63 billion euros, an increase of 1.4% compared to the previous year.

Net profit of Siemens Healthineers in 2020 amounted to 1.42 billion euros, which is 10% less than the profit recorded at the end of 2019. Tax payments were 27.2%, up from 27.7% in fiscal 2019. Adjusted basic earnings per share were down 7% at 1.59 euros.

The largest market for Siemens Healthineers remains the United States. In this country, the company earned 4.91 billion euros in revenue at the end of the 2020 financial year, then roughly corresponds to the value of a year ago. In all countries of the Americas, the German vendor received revenue of 5.59 billion euros, which is 2% less than a year earlier. The recommended dividend of €0.80 per share corresponds to a dividend payout ratio of 60% of net income.

In EMEA, Siemens Healthineers sales climbed 3% to reach €4.75 billion. In Asia and Australia, revenue sank 2%, to 4.02 billion euros. In Germany and China, the company received revenues of 874 million and 1.89 billion euros (0% and + 3%), respectively^[3]

The ratio of new equipment orders to completed orders reached 1.06 in fiscal 2020.

Adjusted EBIT decreased by 2.2 billion euros compared to the previous year, which led to an adjusted EBIT margin of 15.4% (down 170 basis points from last year). In the segment "Diagnostic Imaging Systems," a good adjusted EBIT margin was recorded, which amounted to 21.0%, in particular, due to positive exchange rate effects. Adjusted EBIT margin in the High-Tech Therapy Systems segment was 18.3%. As Siemens Healthineers explained, it was negatively affected by the acquisition of Corindus. In the Laboratory Diagnostics segment, adjusted EBIT margin was 1.8%, mainly due to a decrease in routine research and higher costs due to the COVID-19 pandemic.

Free cash flow increased by 32% compared to the previous year - to about 1.4 billion euros, mainly due to improved settlements with debtors, as well as the transition to MSFO-16.

In fiscal 2021, Siemens Healthineers expects revenue growth on a comparable basis (less changes in exchange rates and portfolio effects) of 5 to 8% compared financial to 2020. The company expects adjusted basic earnings per share (including expenses for, mergers, acquisitions disposals and other measures related to the product portfolio, as well as severance pay, net) to be between 1.58 and 1.72 euros (comparable amount for the previous year: 1.61 euros).

2019: MRT and CT scanners generate the most revenue. Sales growth to €14.5 billion

In fiscal 2019, Siemens Healthineers' revenue reached €14.52 billion, up 8% from a year earlier. Excluding currency fluctuations, sales from the German manufacturer of medical devices increased by 6%.

In 2019, Siemens Healthineers collected orders worth 15.85 billion euros, while in 2018 the figure was measured at 14.51 billion euros. Thus, the volume of orders from the company increased by 9%.

Siemens Healthineers 2019 Revenue Figures

The financial report states that Siemens Healthineers revenues have increased in all divisions (most of all in the structure for the production of medical imaging equipment) and geographical regions (including China and the USA).

Profits in the diagnostic business shrank due to increased costs associated with the promotion of an automated laboratory to conduct research in the field of immunoassay and clinical biochemistry Atellica Solution.

The largest turnover of Siemens Healthineers still falls on the sales of MRI, CT scanners and other equipment for medical imaging. This segment brought the company revenue of 8.9 billion euros at the end of the 2019 financial year. This exceeded the value of a year ago by 7%.

The unit responsible for the release of diagnostic solutions recorded a 2 percent percentage increase in revenue, up to 4.1 billion euros.

In the Advanced Therapies division, which is developing technologies for advanced therapy, annual sales rose 6% to 1.6 billion euros.

In 2019, the countries of the Americas brought the vendor 5.8 billion euros in revenue, which is 5% more than a year earlier.

In the EMEA region, turnover increased by 5%, to 4.6 billion euros. Siemens Healthineers revenue rose 8% in Australia and Asia. Here in 2019, the company earned 4.1 billion euros.

Net profit of Siemens Healthineers in fiscal 2019 amounted to 1.59 billion euros, which is 24% more than in 2018.^[4]

2018: "Super strong" MRI and CT scanner business did not save Siemens Healthineers from falling sales

In the 2018 fiscal year, which ended in September 2018 calendar, Siemens Healthineers revenue amounted to 13.4 billion euros, which is 2% less than a year earlier. The volume of orders increased by the same 2% and reached 14.5 billion euros. Moreover, the greatest rise was recorded in the United States. The annual profit of Siemens' medical division fell from 2.4 billion euros to 2.2 billion euros.

The financial report noted that Siemens Healthineers sales undermined unfavorable currency fluctuations. If this factor is not taken into account, the company's revenue rose by 4%, and the growth took place in all regions, and the business for the production of MRI, CT and X-ray equipment showed the greatest dynamics.

Financial performance of Siemens and Siemens Healthineers in particular

Things are going especially well in China, where sales of such equipment jumped 6%. The document, which was published on November 8, 2018, does not contain a financial breakdown by business segment of Siemens Healthineers.

In an interview with Bloomberg, Siemens Healthineers CEO Bernd Montag called the imaging systems business "super powerful" and noted that the company's first fiscal year in public status was "very successful."

Montag also spoke about the high demand for automated laboratories to conduct research in the field of immunoassay and clinical biochemistry Atellica. By the end of September 2018, the company had delivered a total of 990 such systems, which falls within the upper bound of the forecast range. About 35% of Atellica's sales accounted for 35%, and 90% of the profit comes not from the devices themselves, but from consumables.

According to the head of Siemens Healthineers, the company expects that by the end of fiscal 2019 there will be from 3200 to 3500 Atellica systems in operation in the world, and by 2020 there should be about 7 thousand of them.^[5]

2017: Revenue growth to €13.8 billion thanks to diagnostic imaging equipment

In fiscal 2017, Siemens Healthineers generated €13.8 billion, up 2% from a year earlier. The volume of new orders exceeded 14.2 billion euros, an increase of 3% on an annualized basis.

The profit of Siemens' medical unit was equal to 2.49 billion euros, while in the 2016 financial year it was 2.3 billion euros.

Siemens Healthineers Year Totals: MRI Scanners Help Boost Revenue

The sale of equipment and software for healthcare needs remained Siemens' third largest business, after industry, electricity and gas.

Siemens also reports that the main drivers of medical business growth were the European and Chinese markets, and the high profitability, expressed in 18.1 percent profit margin (one of the highest indicators among the concern's divisions), was provided by products in the field of diagnostic imaging (MRI and CT scanners, ultrasound machines, etc.). The same solutions and services became the basis of new orders from the vendor.

The company also noted that Siemens Healthineers revenue increased despite unfavorable currency fluctuations.^[6]

Simultaneously with the publication of the financial statements, plans were officially announced for Siemens Healthineers to go public. Joe Kaeser, President and CEO of Siemens AG , said the company will complete preparations for the IPO of the medical division by the end of March 2018.

The top manager did not name the specific timing of the transformation of Siemens Healthineers into a public company, but added that this can only happen at the moment when the company sees the "optimal time" for this.

In preparation for the IPO, a new CFO was appointed to Siemens Healthineers. It was Jochen Schmitz. According to Reuters, the value of the company at the time of the IPO could be 40 billion euros.

Investment banks Goldman Sachs, Deutsche Bank and JP Morgan were chosen as the organizers of the initial public offering of Siemens Healthineers shares.^[7]

2016: Revenue growth 5% to €13.5 billion and plans to go public

In November 2016, industrial concern Siemens published a report on its work in fiscal year 2016. From the materials, the revenues of the medical unit became known, which the company wants to separate from itself and put on the stock exchange.

For the reported 12-month period closed on 30 September 2016, Siemens Healthineers' revenue was €13.5 billion, up 5% from a year earlier. The volume of orders reached 13.8 billion euros, an increase of 4%.

The division's profit climbed 5.4% year-on-year, reaching €2.3 billion. Profit margins during this time rose to 17.2% from 16.9%. Free cash flow rose to 2.2 billion euros from 2 billion euros. EBITDA (profit before taxes, interest, depreciation and amortisation) increased by 159 million euros for the year, to 2.69 billion euros.

Siemens Healthineers will become a separate public company

Medical solutions are Siemens' third largest market after industry, electricity and gas.

At the same time as the financial statements were published, Siemens announced plans to separate the medical business into a new company and conduct its IPO to focus on key business areas such as electrification, automation and digitalization.

According to Siemens CEO Joe Kaeser, the timing and number of shares sold will depend on the stock market situation. Siemens Healthineers will remain part of the concern, but by becoming public, this company will become stronger, Siemens management is confident.

In its history, Siemens has repeatedly reorganized its business by creating new companies on the basis of its divisions, putting them on the stock exchange, forming joint ventures and directly selling its structures. As a result of such changes, Siemens left the markets for semiconductor, lighting, automotive and communication solutions.^[8]

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