Target achievement for 2018
Revenue increased on a comparable basis
Revenue in fiscal year 2018 amounted to € 13.4 billion. On a comparable basis, revenue increased in fiscal year 2018 by 4%, in comparison to the previous year, driven by the segments Imaging and Advanced Therapies. Thus, we achieved our outlook of 3% to 4% comparable revenue growth for the fiscal year 2018. The profit, adjusted for IPO and severance charges, amounted to € 2.3 billion in fiscal year 2018. The adjusted profit margin was lower than in the previous year primarily due to negative currency effects. Despite these effects, with an adjusted profit margin of 17.2%, we achieved our outlook in the fiscal year, which ranged from 17% to 18%.
Revenue by segment
On a comparable basis, revenue grew in all segments
On a comparable basis, revenue increased in fiscal year 2018 by 4% driven by the segments Imaging and Advanced Therapies. Magnetic resonance, maintaining the segment Imaging’s leadership in innovation, showed particularly strong growth. Revenue growth in the Advanced Therapies segment has primarily been influenced by the structural shift from open surgeries to minimally invasive procedures in which our products (and related services) play an integral role.
Revenue by region
On a comparable basis, revenue grew in all regions
On a comparable basis, revenue grew moderately in all regions, headed by a strong increase in the Imaging segment. The solid comparable revenue growth in the EMEA region was supported by all segments including a very strong performance of Advanced Therapies. In the Americas growth was moderate on a comparable basis, and was driven by a strong increase in Imaging. The Asia and Australia region was solidly up year-over-year on a comparable basis in all segments.
Profit and income
Profit decreased by € 291 million, or 12%, from € 2,401 million in fiscal year 2017 to € 2,110 million in fiscal year 2018. The decrease was primarily due to negative currency effects. Additionally, in fiscal year 2018 Siemens Healthineers encountered effects amounting to € 199 million from costs for the IPO as well as severance charges. Net income decreased by a lower amount than profit due to decreasing financing interest and decreasing income tax expenses: by € 112 million, or 8%, from € 1,396 million in fiscal year 2017 to € 1,284 million in fiscal year 2018.
Earnings per share
Our dividend policy targets a payout of 50% to 60% of net income
The basic earnings per share amounted to € 1.26 in fiscal year 2018 and was negatively affected by currency effects and IPO-costs. Siemens Healthineers propose a dividend per share of € 0.70 and therefore a payout volume of about 55% of net income. This is in line with our dividend policy, which provides for a dividend of 50% to 60% of net income.
The Siemens Healthineers Strategy 2025
Focused on five future-oriented areas
The significant changes affecting the healthcare provider market - consolidation, industrialisation and health management - are accompanied by a profound technological paradigm shift, driven in particular by digitalisation and the application of artificial intelligence. The Siemens Healthineers Strategy 2025 is our guide to countering these changes.