Siemens Healthineers is a global provider of healthcare solutions and services, with activities in numerous countries around the world and have more than 18,500 patents, patent applications, and utility models.
Our purpose is to enable healthcare providers to increase value by empowering them on their journey towards expanding precision medicine, transforming care delivery, and improving patient experience, all enabled by digitalizing healthcare. With about 52,000 dedicated employees in over 70 countries, we will continue to innovate and shape the future of healthcare.
Full year guidance largely achieved in FY19
Revenue in fiscal year 2019 amounted to € 14.5 billion. On a comparable basis, revenue increased in fiscal year 2019 by 6% supported by all segments, and due to very strong growth in Imaging and strong growth in Advanced Therapies. Thus, we overachieved our outlook of 4% to 5% comparable revenue growth for the fiscal year 2019. The profit, adjusted for severance charges, amounted to € 2.5 billion in fiscal year 2019. The profit margin adjusted for severance charges was with 17.3% and ended up slightly below our outlook for fiscal year 2019, which had been in the range of 17.5% to 18.5%.
Revenue by segment
On a comparable basis, revenue grew in all segments
On a comparable basis, revenue increased in fiscal year 2019 by 6% supported by all segments, and due to very strong growth in Imaging and strong growth in Advanced Therapies. In the Imaging segment, Molecular Imaging in particular reported significant growth.
Revenue by region
On a comparable basis, revenue grew in all regions
On a comparable basis, revenue grew in all regions, headed by a very strong increase in the Region Asia, Australia. The strong comparable revenue growth in EMEA was supported by all segments, including strong performances by Imaging and Advanced Therapies. In the Americas comparable revenue growth was strong, primarily due to significant growth in Imaging and a moderate increase in Advanced Therapies, partly offset by a slight decline in Diagnostics. Comparable revenue growth was very strong in Asia, Australia due in large part to significant growth in Advanced Therapies and strong performances in Diagnostics and Imaging.
Profit and Net Income increased (in million €).
Profit increased by 16%, mainly due to volume effects coupled with the cost savings program and a slight positive currency effect. The profit figure included severance charges amounting to €57 million (2018: severance charges of €96 million and IPO costs of €103 million). Net income increased by 24% to €1,586 million, mainly due to higher revenue. The increase was supported by lower financing interest and by a lower income tax rate.
Earnings per share
Our dividend policy targets a payout of 50% to 60% of net income
The basic earnings per share (EPS) amounted to € 1.57 in fiscal year 2019. Siemens Healthineers propose a dividend per share of € 0.80 and therefore a payout volume of about 50% of net income. This is in line with our dividend policy, which provides for a dividend of 50% to 60% of net income.
On the way to the next level of profitable growth
Fiscal year 2020 marks the beginning of the second phase of the Siemens Healthineers Strategy 2025, for which the Company has defined clear priorities for its three segments. The so-called Upgrading phase will run until the end of fiscal year 2022. During the Upgrading phase Siemens Healthineers aims at comparable revenue growth of more than 5% p. a. (per annum) and growth of adjusted basic earnings per share of around 10% p. a.
In the Imaging segment, the focus is on continuously innovating the core business, the expansion of diagnostic offerings and taking a leading role in clinical decision-making based on artificial intelligence. In the Diagnostics segment, the main task is to exploit the opportunities offered by the market trend towards automated workflows in laboratory diagnostics and to bring the segment up to market-growth level in the midterm. On top of this, it is planned to further expand the point-of-care business. The Advanced Therapies segment is set to further develop innovative technologies and services that advance and improve image-guided clinical procedures. For example, the new robotic portfolio from Corindus Vascular Robotics, Inc. combined with the strengths in image guidance and navigation will support the transformation of care delivery and improve precision in complex endovascular procedures.
At the same time, Siemens Healthineers has also defined three cross-segment priorities for the Upgrading phase: Market share gains in geographic growth markets, market share gains with leading healthcare providers and driving forward the Company’s digital transformation.