SMAWF - Siemens Aktiengesellschaft (SIEGY) Q1 2024 Earnings Call Transcript

2024-02-13 10:19:05 ET

Siemens Aktiengesellschaft (SIEGY)

Q1 2024 Earnings Call Transcript

February 8, 2024 4:00 AM ET

Company Participants

Eva Scherer - Head of Investor Relations

Roland Busch - President, CEO & Member of Management Board

Ralf Thomas - CFO & Member of the Managing Board

Conference Call Participants

Andrew Wilson - JPMorgan

Andre Kukhnin - UBS

James Moore - Redburn Atlantic

Max Yates - Morgan Stanley

Presentation

Eva Scherer

Good morning, ladies and gentlemen, and welcome to our Q1 conference call. All Q1 documents were released this morning and can be found also on our IR website.

I'm here today with our CEO, Roland Busch; and our CFO, Ralf Thomas, who will review the Q1 results. After the presentation, we will have time for Q&A. Please be aware that the virtual Siemens AGM starts right after this call, and therefore, we must limit the time of the call to 45 minutes. With that, I hand over to Roland.

Roland Busch

Thank you, Eva, and good morning, everyone, and thank you for joining us to discuss our first quarter results ahead of our virtual AGM.

We again delivered strong results, maintaining a consistent trajectory of profitable growth despite a weak macroeconomic and a challenging geopolitical environment. Let's begin with the key takeaways. The robust top-line momentum of our business once again highlights the full confidence our customers place in us. We support them in their digital and sustainable transformations.

Book-to-bill reached a strong level of 1.21, driving order backlog to an all-time high of €113 billion despite negative currency effects. Orders at €22.3 billion grew 2% organically, and we were significantly driven by mobility by up to 92% due to several large orders.

Smart Infrastructure delivered orders on a high level, slightly exceeding last year's record level on a comparable basis. And as expected, we saw ongoing normalization of short-cycle automation demand in digital industries on continued destocking by customers and Channel Partners.

Channel Partner Inventories are still at elevated levels, particularly in China. As anticipated, demand showed a sequential improvement over the trough in the previous quarter. We expect this trend to gradually continue in the quarters ahead....

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