Q4 2025 Siemens AG Earnings Call and Business Update - Part 2

November 13, 2025

Operator: Investment, whatever the number is. Does that have an impact on the P&L?

[Analyst 1]: Investment, whatever the number is. Does that have an impact on the P&L?

Ralf P. Thomas: Thank you, James, for giving me an opportunity to clarify a bit. I know that some of you may consider the guidance for DI margin conservative. I would rather qualify it as prudent. We clearly said and also experienced that part of the market is not yet bouncing back. We shape like to investment sentiments, and therefore we do expect on top of exchange rate and also on top of the extraordinary for integration that we mentioned in severance, which will be pretty much 50% of that would be guided for the entire company for fiscal 2026. On top of that, we'll see quite a couple of challenges developing through the first couple of months in the market. We do see momentum there. They are doing their homework.

Ralf P. Thomas: Also, please bear in mind that severance being booked does not implicitly mean that all the impact is immediately popping up. That will take time to materialize. We want the company to stand on firm ground and also learn from history. Therefore, I would call it prudent and not conservative.

Roland Busch: Let me talk about the, over the in AI investment. This is basically, it's investment which goes across the company, but there's an increment of EUR 100 million-plus, which you will find in the innovation below IB in that part. This is particular for the team, which was Vasi Philomin. You will get to know him later, is about to build up, but this is only part of that. Other parts are, as you know, as I talked about, we have 1,500 AI experts across the company. We have many AI projects also in the businesses. That is not increment, this is part of our R&D budget.

[Company Representative] (Siemens Aktiengesellschaft): I take question now from the press side. For Michael Fleming. Question from the press side. Any hands? Please.

Operator: I take question now from the press side. For Michael Fleming. Question from the press side. Any hands? Please.

Michael Fleming: Okay, great. I have two questions, please. I didn't raise my hand, but nevertheless, I will take the chance.

Ralf P. Thomas: You're a volunteer.

Roland Busch: You volunteered.

Michael Fleming: What complications do you have on the regulatory side for the deconsolidation of Healthineers? The second one, the share price today is 5% down. How do we interpret this reaction? Thank you.

Ralf P. Thomas: Yeah, thank you for your questions, Michael. Of course, too early to finally conclude on the share price development of today. What I feel also from the responses and that what we get as feedback, we made you drinking from a firehose, many different aspects, levers floating around, we are happy to have now an opportunity to clarify areas that may not have been coming across completely clearly. That's why we have a Q&A. I firmly believe that what we have to share today will have a very positive impact on the long-term value development of both Siemens AG and Siemens Healthineers AG's shares, and also prospering opportunities from capital allocation in both companies.

Ralf P. Thomas: They are both leading in their markets. I cannot imagine anything that could hold them back from being successful even more than they have been so far. Too early to jump to conclusions, but it's not a surprise that there's a lot of volatility at the moment out there, as I said, since there's room and of course also reason for further clarification and details. Your first question may be one of them that needs further details. I hope we didn't get across like there's regulatory problems or challenges. It's just respect for regulatory processes. I think everyone is well advised when you do something for the first time, that you respectfully look at those who have a say in the process, and therefore I would rather consider that being a topic of timelines than content, but too early to assess that.

Ralf P. Thomas: It's in their field and respectfully wait for them. If and when regulatory processes are getting us a clarification fast, we will be fast. If it takes a while, we will have to wait, and we will then be very well prepared for the next steps to be taken.

[Company Representative] (Siemens Aktiengesellschaft): Next question from Ben Uglow.

Operator: Next question from Ben Uglow.

Ralf P. Thomas: I think Michael wanted to add something. Sorry.

Michael Fleming: I choose the word problem.

Ralf P. Thomas: I'm sorry.

Michael Fleming: I choose the word problem.

Ralf P. Thomas: I'm sorry.

Michael Fleming: I choose the word problem because maybe on the tech side you may have problems.

Speaker #1: Siemens or whatever the number is, does that have an impact on the

Speaker #1: P&L? So thank you, James, for giving me

Ralf P. Thomas: Yeah. As I said, I mean, we are standing on very firm grounds with our view on matters. Still, there is a regulatory aspect in it that needs to be considered. We respectfully address that. We are talking to the regulators that are relevant for these steps. We feel encouraged by all the means and initiatives we took before that we are on the right path. That doesn't take away the decision power from the regulatory framework. Therefore, we are confident that there is no problems, but there is timelines and opinion-making required on the regulatory side. If we were not convinced of our view, we would never dare to show up with a proposal. Now it's Ben's time.

Speaker #2: an opportunity to clarify a bit. I know that some of you may consider the guidance for DI margin conservative. I would rather qualify it as prudent.

Speaker #2: We clearly said and also experienced that part of the market is not yet bouncing back, reshaped like to investment sentiments. And therefore, we do expect on top of exchange rate and also on top

Speaker #1: would be Of that guided for the company entire for 26 . On fiscal top of that , we'll see quite a couple of challenges developing through the first couple of months in the market .

Speaker #1: We do see momentum there . They are doing their homework . But also , please bear in mind that severance being booked does not implicitly mean that impact is all the immediately popping up .

[Company Representative] (Siemens Aktiengesellschaft): Next question from Alexander Huebner.

Operator: Next question from Alexander Huebner.

Ralf P. Thomas: Ben Uglow was on. Yeah.

[Company Representative] (Siemens Aktiengesellschaft): Oh, Ben.

Ralf P. Thomas: Oh, Ben.

Ralf P. Thomas: Chris, take Ben first and then. Ben.

Ben Uglow: Yeah, just push.

Speaker #1: will take time So that to materialize and we want the company to stand on firm ground and also learn from history . So therefore I it would call prudent and not conservative .

Ralf P. Thomas: Mike.

Ben Uglow: Switch the microphone. There we go. I guess it's related to the previous question. We're all frankly in the dark about exactly what the tax situation is and the regulatory implication. I know, I understand these are probably sensitive conversations, et cetera, but Ralph, can you give us just a little bit more sense on what the tax obligations or considerations are? The reason why I ask is, from a Siemens AG standpoint, our understanding was that had basically gone away, and what we're really talking about is from a receiving shareholder standpoint-

Speaker #1: So let me talk about the over the entire investment . So this is it's an which goes across basically company . But there's the an increment of 100 million , 100 million plus which you will find in the innovation below .

Speaker #1: In that part . This is particular for the team , which was Philemon . We will you will get to know him later .

Speaker #1: Is build about to this is up . But only part of that . Other parts are , as you know , as I talked about , we have 1500 AI experts across the company .

[Company Representative] (Siemens Aktiengesellschaft): Mm.

Ben Uglow: Mm.

Ben Uglow: what their withholding tax or commitment is gonna be. Is that right? The second question is far, far more fun. A year ago, I think it was when we had the Handelsblatt article and various comments about this conversation, and at that point, I think that there was a, you know, how core is Siemens Healthineers to Siemens? We were gonna do an internal review, look at the synergies and all these kind of things, and there was obviously debate within the company. It now looks as though a decision has been made. What allowed you to come to a firm final decision? What changed in the water? What put you over the edge, so to speak, that allowed you to do this?

Speaker #1: We have many AI projects also in businesses , but that the is not increment . This is part of the R&D budget .

Speaker #2: I take a question now from the side press . I saw Michael Fleming . Question from the press side . Any hands ?

Speaker #1: Please .

Speaker #3: great Okay , . I have two questions . Please . I didn't raise my hand , but nevertheless , I will take the chance .

Speaker #1: You're in volunteer . You're volunteered .

Speaker #3: What complications do you have on the regulatory side for the deconsolidation of Healthineers ? And the second one , the share price today is 5% down .

Ralf P. Thomas: Let me start with the tax one first. I mean, there's of course, tax implications in many different areas. For Siemens AG as a company and its tax obligations, I think we are fine. There's an immaterial amount compared to the potential deconsolidation gain involved. We didn't wanna bother you with that.

Speaker #3: How do we interpret this reaction ? Thank you .

Speaker #1: Yeah . Thank you for your questions , Michael . Of course . Too early to finally conclude on the share price development of today .

Speaker #1: But what I feel also from the responses and that what we get is feedback . We made you drinking from a firehose . Many different aspects , levers floating around and we are happy to have now an opportunity to clarify areas that may not have been coming across completely clearly .

Ben Uglow: Yeah.

Ralf P. Thomas: Would be too early to quantify anyhow. Yeah. Not on the Siemens AG side. Therefore, it's difficult for us to talk about withholding tax because we are not the addressee of withholding tax. Yeah. It's the depot holding banks for shareholders, and that very much depends on the nationality, jurisdiction, or residency of the individual being involved, of the magnitude of the investment being involved, whether it's held privately or in a business environment. Therefore, we cannot jump to conclusions for the shareholder because there's not the shareholder. Therefore, withholding tax is, of course, the area we are talking. Since we are not owning the process, it's hard to comment.

Speaker #1: So that's why we have a Q&A . I firmly believe that what we have to share today will have a very positive impact on the long term value development of both Siemens AG and Siemens Healthineers AG shares , and also prospering opportunities from capital allocation in both companies .

Speaker #1: They are both leading in their markets , and I cannot imagine anything that could hold them back from being successful even more than they have been so far .

Ralf P. Thomas: We are very confident that we thought about all the relevant aspects. It's still not our turf to decide on. Therefore, we respectfully have to wait. Maybe this is also giving me a bit of an opportunity. I mean, the timelines are not written by ourselves, obviously. You know, you have to respectfully wait for conclusions being made in that field. There's also, of course, the question out from that what I heard: where do we start from and where do we wanna end up with? For those who are familiar with the financial and accounting language, a financial investment is considered to be below 20% typically. There's other aspects that need to be considered. If that's the midterm goal, you probably need to know where we start from.

Speaker #1: too So early to jump to conclusions . But it's not a surprise that there's a lot of volatility at the moment there . out As I said , since there's room and of course also reason for further clarification and details .

Speaker #1: Your first question , maybe one of them that needs further details . I hope we didn't get across like there's regulatory problems or challenges .

Speaker #1: Its just respect for regulatory processes . And I think everyone is well advised when you do something for the first time that you respectfully look at those who have a say in the process and therefore I would rather consider that being a topic of timelines than content .

Speaker #1: But too early to assess that . It's in their field and respectfully wait for them if and when regulatory processes are getting us a clarification fast , we will be fast .

Ralf P. Thomas: At the moment, we hold 67% in Siemens Healthineers. You also heard us talking about funding our software acquisitions, our latest software acquisitions with the sell down of listed shares, both Siemens Energy and Siemens Healthineers. We didn't specify, but if you took for modeling an area of something around 60%, sell down to 60% from the 67 being a residual from that what we wanted to do in funding maybe a bit below, this is probably a meaningful area to think about. Starting point, yeah, is 67, but there is intent and processes that have been ongoing to do what we said clearly last year when we announced that funding for the software acquisitions would be in part be done by using the proceeds of selling listed shares.

Speaker #1: it If takes a while , we will have to wait and we will then be very well prepared for the next steps to be taken .

Speaker #3: Next question from Ben Uglow .

Speaker #1: I think Michael wanted to add something . Sorry , I the problem .

Speaker #3: sorry

Speaker #3: . I choose . I'm the word problem because maybe on the tech side , you you may have problems .

Speaker #1: Yeah . As I said , I mean , if are we we are standing on very firm ground with our view on matters , but still there is a regulatory aspect in it that needs to be considered .

Speaker #1: And we respectfully address that . We are talking to the regulators that are relevant for these steps . We feel encouraged by all the means and we took initiatives before that , that we are on the right path , but that doesn't take away the decision power from the regulatory framework .

Ben Uglow: Thank you for that question. I give you really more details. What I'm saying now is not in the sequence of priorities, but it's basically describing the whole process, how we get to the decision. Let me first start. You always said we are not dogmatic about it, and you also said that since the acquisition of Varian, we have a bottom-line impact of EUR 350 million, and we want to see how that materialize it. By the way, it did. Obviously we discussed all possible options, because we need to be diligent in such a big decision so we don't oversee anything because this is a one-way street once you go there.

Speaker #1: So therefore , we are confident that there is not problems , but there is timelines and opinion making required on the regulatory side .

Speaker #1: If we were not convinced of our view , we would never dare to show up with a proposal .

Speaker #3: been . Now it's

Speaker #1: Time .

Speaker #2: question Next from Alexander Reuters .

Speaker #1: On . The .

Speaker #3: Chris . Take Ben first and then .

Speaker #1: Ben . Yeah , just push . Switch the microphone . There we go .

Ben Uglow: We're working, for example, also on the point, and the question is how strong can we develop together the whole healthcare sector? It's not only in the headquarter to think about. It's really on the field. I mean, I started together with a team locally in United States, also together with a consulting company to see can we together create a stronger impact. We visited

Speaker #4: guess it's I related to the previous question , but and we're all the frankly in dark about exactly what the tax situation is .

Speaker #4: And the regulatory implication . And I know I understand these are probably sensitive conversations , etc. . But Ralph , can you give us just a little bit more sense on the what tax obligations or considerations the reason why I ask is from a Siemens AG standpoint , our understanding was that had basically gone away .

Roland Busch: Hospital customers and to see there. By the way, the teams are working also on the ground together to see, can we really leverage our each other's strengths? I was saying in the basement where you find the scanners and in the ground floor and uppers where we have the beds and all the other productivity, can we do something including sustainability? Yes, we can, and this is also good. It's a roughly EUR 1 billion business of ours, just one. Again, it was, it's not that synergetic that you say that you can really drive much higher growth. It's still good. We really took a deep dive in what does digitalization mean in our sectors, in industrial sector, infrastructure, transport, versus the healthcare sector.

Speaker #4: And what we're really talking is from a about receiving shareholder standpoint , what they're withholding tax or commitment is going to be . So is that right ?

Speaker #4: And then the second question , as far , far more fun . A year ago , I think it was when we had the Handelsblatt article and various comments about this conversation .

Speaker #4: And at that point , I think that there was a , you know , how core is Siemens Healthineers to Siemens . We were going to do an internal review , look at the synergies and all these kind of things .

Roland Busch: When I talk healthcare sector, and this is another element, increasingly, a clinic-driven healthcare sector. If you look at Siemens Healthineers' strategy, where they go, it's going more into therapies along with diagnostics, which is really the clinical part. You see all the regulations. I mean, hospital systems, for example, they don't scale across regions. Digitalization is different from that perspective. We looked into what is our capital requirement in the future? What is that one of Healthineers? A very important aspect, which you have to take into consideration. What are the fundamentals in the markets regarding growth trajectory, where we can do a regional as well? Again, re-evaluating how synergetic is the business of each other.

Speaker #4: And there was obviously a debate within the company . It now looks as though a decision has been made . What allowed you to come to a firm final decision ?

Speaker #4: What changed in the water ? What put you over the edge ? So to speak , that allowed you to do this ?

Speaker #1: Okay , let me start with the tax one first . I mean , there's of course tax implications in many different areas for Siemens AG as a company .

Speaker #1: And it's tax obligations , I think we are fine . There's an immaterial amount compared to the potential deconsolidation gain involved . We didn't want to bother you with that would be too early to quantify anyhow .

Speaker #1: So not on the Siemens AG side . Therefore it's difficult for us to talk about withholding tax because we are not the accuracy of withholding tax .

Roland Busch: At the same time, and this is a very important point, our Siemens business really developed further in terms of growth, in terms of profitability. We are What, the way how much of obviously cash we are generating on our own. If you take that all together, you come to a point that once we go that step, we have a much, much stronger freedom regarding capital allocation on both ends. We could not justify a synergetic case which is as big as in order to really keep going and really leverage. And thought, we are better off in making that step.

Speaker #1: Yeah , it's and it's the , it's the depot holding banks for shareholders . And that very much depends the nationality or jurisdiction on residency of the individual being involved of the magnitude of the investment being involved , of whether it's held privately or in a business environment .

Speaker #1: So therefore we cannot jump to conclusions for the shareholder because there's not the shareholder . And therefore withholding tax of is course , the area we are talking .

Speaker #1: And since we are not owning the process , it's hard to comment . But we are very confident that we thought about all the relevant aspects .

Ralf P. Thomas: If I may add one thing just quickly. I mean, if you look back, that's why we took the time to remind ourselves where we are coming from since Roland took over. I think it's fair to say that the company has been already changing its fabric massively. It's not finger-pointing to the past or complaining about missed opportunities. It's about just keeping the momentum of that what we have been embarking on. We are a company that is scaling on digitalization, electrification, automation, sustainability with a focus on AI that is scaling globally. The healthcare industries are globally fragmented. They are ruled and regulated in different jurisdictions. If and when they scale, it's a different ballgame.

Speaker #1: But it's still not our turf to decide on . So therefore we respectfully have to wait . Maybe this is also giving me a bit of an of an opportunity .

Speaker #1: I mean , the timelines are not written by ourselves , obviously . Yeah , you have to respectfully wait for conclusions being made in that field , but there's also , of course , the question out from that .

Speaker #1: What I heard. What do we start from, and where do we want to end up with? For those who are familiar with the financial and accounting language, a financial investment?

Speaker #1: Yeah, it is considered to be below 20%. Typically, there are other aspects that need to be considered. If that's the midterm goal, you probably need to know where we start from.

Speaker #1: At the moment , we hold 67% in Siemens Healthineers . You also heard us talking about funding our software acquisitions , our latest software acquisitions with the sell down of listed shares , both Siemens Energy and Siemens Healthineers .

Ralf P. Thomas: Second thing is the entire sector, and don't get me wrong, Siemens Healthineers is a fantastic business, and they are clear market leaders in most of their areas anyhow, so technologically-wise and also growth-wise and from a profit-generating perspective. The entire sector will most likely not grow double-digit anytime soon. We can, and prove that we can do that already by now in some areas. Therefore, capital allocation needs to be focused into those relevant growth areas, and why harming others with our opportunities? That's a big, big difference compared to the status we had when we listed Siemens Healthineers in March 2018. That was a different shape of Siemens AG.

Speaker #1: So we didn't specify, but if you took for modeling an area of something, around 60% sell down to 60% from the 67.

Speaker #1: Being a residual from that , what we wanted to do in funding , maybe a bit below this is probably a meaningful area to think about .

Speaker #1: So, starting point: yeah, it is 67. But there is intent and processes that have been ongoing to do what we said.

Speaker #1: Clearly last year when we announced that funding for the software acquisitions would be part in be done by using proceeds of selling the listed shares .

Ralf P. Thomas: It's only consistent that you time and again review your portfolio, your perspectives, your capital allocations, and then conclude at the right point in time to do the right thing and then consistently and as quickly as possible.

Speaker #1: So and thank you for that question . And and I give you really more details , what I'm saying now is not in the sequence of priorities , but it's basically describing the whole the whole process , how we get to the decision .

Speaker #1: Let me first start , you always said we are not dogmatic about it . And we also said that since the acquisition of have a bottom Varian , we line impact of 350 million , and we want to see how that materialize it .

[Company Representative] (Siemens Aktiengesellschaft): The next question from Nick Alexander from Reuters.

Operator: The next question from Nick Alexander from Reuters.

Alexander Huebner: Thank you very much. I want to follow up on this a little bit regarding your targets for the next few years. When you take out the Siemens Healthineers' projected or past growth rates, the 6% to 9% don't seem too ambitious. I think that's what the market also thinks today. This is not really excluding Siemens Healthineers, this is not very much more than in the last few years. Can you comment on that? How ambitious would you say is your target? On the other hand, Siemens Healthineers has had a quite a big chunk of your sales and profits in the last few years.

Speaker #1: By the way , it did . So then obviously we discussed all options , all possible options , because we need to be diligent in such a big decision .

Speaker #1: So we don't oversee anything because this is a one way street . Once you go there . So we're example working for , also on on the point on the question is how strong can we develop together ?

Speaker #1: whole The healthcare sector . And it's not only in the headquarters to think about . It's really on the field . I mean , I started together with with the team locally in United States , also together with her consulting company , to see Can We together create a stronger impact visited hospital customers and to see there and by the way , the teams are working also on the ground together to see can we really leverage each other's strengths ?

Alexander Huebner: How do you think Siemens or do you think Siemens can compensate this within the next few years? Will there be a Siemens in the end that may prove to be too small and, become a takeover target? Thank you.

Speaker #1: I was saying in the basement where you find the scanners and on the ground floor and others where we have beds and other productivity measures. Can we do something that includes sustainability?

Speaker #1: And yes , we can . And this is also good . It's a , it's a 1 billion business roughly of ours . Just one .

Speaker #1: But again it was is not not not that synergetic that you say that you can really drive much much , much , much higher growth .

Roland Busch: Let me start at the end. I don't think so. We are still a size of a company, and this does not cause sleepless nights. Let me start with your... I tend to disagree that the 6% to 9% growth rate going forward is a weak target. I would consider it to be very strong number and think where we're coming from, and I talked about it in the last sequence. We had 5 to 7, you go now from 6 to 9, number one. Number two, did it double check for the GDP growth in whatever the world, how that goes? Even our markets are on the high side. I talked about our markets growing 6%.

Speaker #1: But it's still good . Then we we really took a deep dive in . What does digitalization mean in our sectors ? In industrial infrastructure sector , transport the versus healthcare sector ?

Speaker #1: The network sector in healthcare is another element of the increasingly clinic-driven healthcare sector. If you look at Siemens Healthineers' strategy, it is going more into therapies with diagnostics, focusing on really the clinical part.

Speaker #1: You see all the regulations , I mean , hospital systems , for example , they don't scale across regions . Digitalization is different from that perspective .

Roland Busch: They grow only by 6% because we have a substantial part of high, fast-growing digital business in there. Remember the 175 by 2030, this grows by 11%. How many companies can claim to play in such a fast-growing market, substantially even revenue? Talk about EUR 9.4 billion revenue. All in all, if you agree that if you come to that conclusion, then in total, the industrial investment, it's held back still. China, by the way, is gradually picking up. This is not a V recovery in the market. It's gradually picking up. We are picking up momentum with that market too.

Speaker #1: we looked Then into we the ? One of Healthineers a very important aspect , which you have to take into consideration . What are the fundamentals in the markets regarding growth , growth trajectory , where we can do a regional as well ?

Speaker #1: And again , reevaluating how synergetic is the business with each others at the same time . And this is a very important point .

Speaker #1: Our Siemens business really developed further in terms of growth , in terms of profitability . So we are the way how how of much obviously cash we are generating on our own .

Roland Busch: I tend to disagree that a growth, a midterm growth of 6.9%, picking up momentum is, we believe, a very strong target. We have to see what others can do in that space. I believe this is really good.

Speaker #1: So if we take that all together , you come to a point that once we we go that step , we have a much , much stronger freedom regarding capital allocation on both ends .

Speaker #1: We we could not justify a synergetic case , which is as big as in order to really keep going and really leverage and and that final the finally thought , we thought it's we are better off in making that step .

Ralf P. Thomas: On top, of course, converting top line into results is not a bad thing either. We clearly committed to outgrowing EPS, the top line growth, which is quite something to accomplish time and again.

Speaker #1: And if I may add one thing , just , just , just quickly , I mean , if you look back , that's why we took the time to remind ourselves where we are coming from .

Roland Busch: One more thing, since you mentioned it. We are for some businesses, we are, we could grow faster. We are throttling, for example, in more dilutive solution business. That's why we say we could go faster, but we keep that on a certain level. That's another element where we really believe that happens, for example, in pieces of our building business and pieces of AI business as well.

Speaker #1: over , I think it's fair Since that the company has been to say already changing its fabric massively , and it's not finger pointing to the past or complaining about missed opportunities .

Speaker #1: It's about just keeping the momentum of that . What we have been embarking on . We are a company that is scaling on digitalization , electrification , automation , sustainability with a focus on AI that is scaling globally , the healthcare industries are globally fragmented .

Ralf P. Thomas: Let, I don't wanna get into accounting things here, but it's a big difference between fully consolidating amongst others, profit and cash flow and owning the proceeds. Because we do own already by now the dividend. We consolidate the free cash flow. It's a big, big difference whether you own something or whether you have something in your area of responsibility from an accounting perspective and an oversight perspective. Don't misinterpret that big difference that is there already, yeah? Now, if and when, as we did, we came to 67%. That gap already has been widening compared to the 85% we originally owned. Did you see any negative development in the KPIs of Siemens consolidated or not?

Speaker #1: They are ruled and regulated in different jurisdictions. So, if and when they scale, it's a different ballgame. The second thing is the entire sector.

Speaker #1: don't get me And wrong , Healthineers is a fantastic business and there are clear market leaders in most of their areas anyhow . So technologically wise and also growth wise and from a from a from from a profit generating perspective , but the entire sector will most likely not grow double digit anytime soon .

Speaker #1: We can improve that. We can do that already. By now, in some areas. Therefore, capital allocation needs to be focused into those relevant growth areas.

Speaker #1: And why harm others with our opportunities? That's a big, big difference compared to the status we had when we listed Siemens Healthineers in March 2018.

Speaker #1: That was different a shape of Siemens AG . Therefore , it's only consistent that you time and again review your portfolio , your perspectives , your capital allocations then conclude at the right point in time to do the right thing .

Ralf P. Thomas: I didn't see that. Therefore, we are confident that we can continue on that trajectory and do meaningful things in a well-balanced way between investing and shareholder returns. The second thing is, we made a clear commitment, and I had that in my presentation and speech, that we will continue committing ourselves to progressive dividend. That means we are, if need be, also ready to increase for an interim period, the payout ratio. The statement is based on a very deliberate approach and well-thought-through planning. We are highly confident that we can close that gap, if it occurs, over a meaningfully period of time. As I said before, we are not owning the timelines of deconsolidation, therefore, we don't wanna speculate about that.

Speaker #1: And then, consistently and as quickly as possible.

Speaker #2: The question is from Alexander, from Reuters.

Speaker #4: Thank you .

Speaker #3: Very much . I want to follow up on this a little bit regarding your your targets for the next for next few the years , when you out take the Siemens Healthineers project or post growth rates , the 6 to 9% don't seem too ambitious .

Speaker #3: And I think that's what the market also thinks today. So this is not really excluding Siemens Healthineers. This is not very much more than in the last few years.

Ralf P. Thomas: If and when it comes to that point that the spin is executed and deconsolidation is taking place, we also will have the benefit of a deconsolidation gain, most likely. We cannot speculate about that today because it's driven by many different factors. Amongst, one is very important, that's the share price at that point in time. You can rest assured as much as the consolidation gain is higher than tax burden by far, it also may exceed a GAAP in a given year if and when the deconsolidation is taking place from an operating perspective. I cannot give you more confidence of the managing board that we are fully aware of that question.

Speaker #3: Can you comment on on that ? How ambitious would you say is your target ? And on the other hand , Siemens Healthineers has has had a quite a big chunk of your of your sales and profits in the last few years .

Speaker #3: How do you think Siemens, or do you think Siemens can compensate this within the next few years, or will there be a Siemens in the end?

Speaker #3: That may prove to be too small and become a takeover target. Thank you.

Speaker #1: start at Let me the end . I don't think so . We are still a sizeable company and this is this does not cause sleepless nights .

Speaker #1: So . But let me start with your I . I tend to disagree that 6 to 9% growth rate going forward is , is a is a weak target .

Operator: Next question from Philip Buller.

Philip Buller: Yeah. Hi, thank you. The first question is a follow-up on the Healthineers comments that you've made. Is it possible that you could potentially deconsolidate pre the spin via dribble outs and blocks? They've been taking place in recent months anyway, or could they potentially still be accelerated prior to the spin-out? That's question one. Secondly, in terms of M&A, it sounds as though potentially large things are gonna happen. What is missing when you talk about the fabric? What's missing from the fabric today that you think is important going forward, and when would we anticipate deals? Thanks.

Speaker #1: I would consider it to be a very strong number. One thing, where we're coming from, and I talked about it in the last sequence.

Speaker #1: We had 5 to 7 to go now from 6 to 9 . Number one , number two , did you double check for the GDP growth in the world ?

Speaker #1: How that goes ? Even our markets are on the high talked about our side . I markets growing 6% . They don't . They grow only by 6% because we have a substantial part of fast growing digital business in there .

Speaker #1: They remember the 175 by 2030. This grows by 11%. How many companies can claim to play in such a fast-growing market?

Ralf P. Thomas: Let me take the first part of your question, Phil. I don't wanna speculate about the timelines and things, but it's highly unlikely that a deconsolidation would take place before the spin of the 30%, yeah? Never say never, but it's highly unlikely. As I said before, we are busily looking into the regulatory framework and opportunities arising from that. The entire process, of course, will not be done within a couple of weeks. We are also mindfully looking at the share price of Healthineers, of course, and therefore we are not in a hurry of doing anything premature and harming the value of that really outstanding company.

Speaker #1: in revenue ? Substantially Talk about 9.9. 4 billion revenue . So all in all , if you if you if you agree that if you come to that conclusion that the and talk about the industrial , the investment , it's hold back still China by the way is is gradually picking up .

Speaker #1: This is not a V recovery in the market. It's gradually picking up, so we are picking up momentum with that market too.

Speaker #1: So I tend to disagree that a gross a mid-term growth of 6.9% picking up momentum is believe , a , we very strong is target .

Speaker #1: And and we have to we have to see what what others can do in that space . But I believe this is really good .

Roland Busch: There's not really a big piece missing currently or, but I can tell you in which areas we're looking. Number one is, and that's quite obvious, we're looking to any kind of software assets in the market. Take, for example, our market expansion, which we did with Dotmatics. It opened us a new space in the R&D of pharmaceutical, so simulating molecules, getting the twins there. This is space which is super dynamic, super interesting. Any kind of asset which enriches our portfolio there is super interesting. We also talk about connected hardware devices, which are channeling data on the shop floor. Any kind of device we have a chance to increase, we are looking into that one.

Speaker #1: And on top, of course, converting top line into results is not a bad thing either. And we are clearly committed to outgrowing EPS.

Speaker #1: The top line growth , which is quite something to accomplish time and again . And one more thing , since you mentioned it , we are for some businesses , we could grow faster .

Speaker #1: We are throttling , for example , in more dilutive solution business . That's where we could say we go faster , but we we keep that on a , on a certain level .

Speaker #1: That's another element where we really believe that happens . For example , in pieces of our building business and pieces of the business as well .

Speaker #1: The other part of your question, Alexander, was around closing a potential gap and being left behind. Siemens Healthineers was once deconsolidated.

Roland Busch: I mean, you know that the new AI factories require new technologies, solid-state transformers, DC switching. We have in all cases what I'm talking about, organic investment as well, but there might be inorganic moves, smaller ones, maybe larger ones. We have the firepower to do that, but it has to make obviously economic sense and align with our strategic priorities. In the AI space in particular, we are watching closely also the startup of smaller companies. I mean, in some cases, they are just, I mean, their market expectations or their value is so high that it's prohibitive. Still in an early space you find a lot of interesting companies, which is interesting.

Speaker #1: I don't want to get into accounting things here , but it's a big difference between fully consolidating amongst others , profit and cash flow and owning the proceeds because we do own already by now , the dividend we consolidate the free flow .

Speaker #1: cash That's a big , big difference . Whether you own something or whether you have something in your area of responsibility from an accounting perspective and an oversight perspective , don't miss .

Speaker #1: Interpret that big difference that is there already . Yeah . So now if and when , as we did , we sell down .

Roland Busch: It's interesting from two perspectives: what's the offering and what is the talent which comes along with that. Typically, we would stick to our trajectory, which we had in the past. We are adding incremental, medium, smaller sized assets to our software portfolio. We're looking into hardware, but we are also to do larger moves, as you know, like Altair and Dotmatics, if it really fits to our portfolio.

Speaker #1: We came to 67% . That gap already has been widening compared to the 85% we originally owned . Did you see any negative development in the KPIs of Siemens consolidated or not ?

Speaker #1: I didn’t see that. Therefore, we are confident that we can continue on that trajectory and do meaningful things in a way that is well-balanced between investing and shareholder returns.

Ralf P. Thomas: Any questions from the media side? Please.

Operator: Hello. Filippo Santelli from La Repubblica, an Italian newspaper. I have two questions. The first one is on your slightly optimistic outlook for the geopolitical scenario. We've seen US and China go through phases of escalation and de-escalation. It looks like we're in the escalation phase right now, but most experts think that in the medium long term, the two countries are headed towards a technological decoupling. What makes you confident that Siemens will stay in a position where it can provide key technological capabilities both to US and China in strategic sectors? Thinking about semiconductors or aerospace or energy or whatever. The second one is on Europe and its industrial and technological competitiveness.

Filippo Santelli: Hello. Filippo Santelli from La Repubblica, an Italian newspaper. I have two questions. The first one is on your slightly optimistic outlook for the geopolitical scenario. We've seen US and China go through phases of escalation and de-escalation. It looks like we're in the escalation phase right now, but most experts think that in the medium long term, the two countries are headed towards a technological decoupling. What makes you confident that Siemens will stay in a position where it can provide key technological capabilities both to US and China in strategic sectors? Thinking about semiconductors or aerospace or energy or whatever. The second one is on Europe and its industrial and technological competitiveness.

Speaker #1: The second thing is we made a clear commitment, and I had that in my presentation and speech: that we will continue committing ourselves to a progressive dividend.

Speaker #1: That means we are , if need be , also ready to increase for an interim period . The payout ratio that is this statement is based on a very deliberate approach and well thought through planning .

Speaker #1: We are highly confident that we can close that gap if it occurs over a meaningful period of time. As I said before, we are not owning the timelines of deconsolidation.

Operator: It's obviously very high in the agenda, do you think in concrete terms, Europe and European countries are taking the right actions to boost the industrial competitiveness both on the regulatory side and on the investment side? Thank you.

Filippo Santelli: It's obviously very high in the agenda, do you think in concrete terms, Europe and European countries are taking the right actions to boost the industrial competitiveness both on the regulatory side and on the investment side? Thank you.

Speaker #1: Therefore , we don't want to speculate about that . But if and when it comes to that point , that the spin is executed and deconsolidation is taking place , we also will have the benefit of a deconsolidation gain .

Roland Busch: You triggered something here. I said you trigger something. Talk about the markets. Number one, the markets themselves when, and I've said it before, number one is We are serving growth markets, secular growth markets. There's not a really one-to-one match between the GDP growth and the market growth because as I said before, we're focusing on the higher growth areas: automation, digitalization, sustainability, and AI. If it comes to technologies, I would say it's getting harder that you have a technology in certain space which scale globally. This is the reason why we are more and more going for local development and not only applications based on a global platform, but genuine local development.

Speaker #1: Most likely we cannot about speculate that today because it's driven by many different factors . Amongst one is very important . That's the price at that share point in time .

Speaker #1: But you can rest assured as much as the consolidation is higher than tax burden by gain far . It also may exceed a gap in a given year .

Speaker #1: If and when that the consolidation is taking place from an operating perspective , I cannot give you more confidence of the managing board that we are fully aware of that question .

Speaker #1: Next question .

Speaker #3: fibula . From Yeah .

Speaker #5: Thank you . Hi . The first question is a follow up on on the Healthineers comments that you've made . Is it possible that you could potentially deconsolidate pre the spin via dribble outs and blocks ?

Roland Busch: Take an example of China. The products which we talked about, the new ones, they have all the way local Chinese components down to the silicon. This is not the high-end five, three nanometers silicon. You find a lot of that, by the way, is produced in China. The older nodes, the market share coming from China is extremely high. We do that also because we know there are regulations coming in which are forcing you to use also only China silicon on your controls, and we do that. We are prepared to do that. We go here all in. At the same time, we do that on the other side.

Speaker #5: They've been taking place in recent months anyway ? Or could they potentially still be accelerated prior to the spin out . That's question one .

Speaker #5: And then secondly , in terms of M&A , it sounds as though potentially large things are going to happen . What is missing when you talk about the fabric , what's missing from the fabric today think is , that you is important going forward ?

Speaker #5: And when would we anticipate deals ? Thanks .

Speaker #1: Let me take the first part of your question. I don't want to speculate about the timelines and things, but it's highly unlikely that a deconsolidation would take place before the spin of the 30%.

Roland Busch: If you talk about innovation, software-defined automation for global market in the United States, this is more based on resources, but also on components coming from there. There's one area obviously, which is more critical, which is software, because software you want to develop once and sell it as much as you can globally. The only restrictions which we see so far, and you could read it also in newspapers, is EDA software. Therein, it's not the whole EDA package. It's the package which is geared for the smaller nodes, so 5, 3 nanometers, which there's some restriction. It was resolved quickly after. This is the arm wrestling. No, this is technology on the one side, rare earth material on the other side, and it was resolved after 3 weeks.

Speaker #1: Yeah , you never say never . it's But highly unlikely . And as I said we before , busily are looking into the regulatory framework and opportunities arising from that .

Speaker #1: So the entire process, of course, will not be done within a couple of weeks. But we are also mindfully looking at the share price of Healthineers.

Speaker #1: Of course. And therefore, we are not in a hurry to do anything premature that could harm the value of that. Really outstanding company.

Speaker #1: So there's not not really a big piece missing currently , but I can tell you in which areas they're looking . Number one is , and that's quite obvious .

Roland Busch: Would that go away? I don't know. This is the point where you also start thinking of can we, let's say fork some of the software platforms as well. If need to, we would. Currently, the majority of that, what we are doing there, we believe we can still serve in different areas. You're right, the focus is definitely semiconductors and to some extent, dual use, this whole aerospace and defense sector. Yeah, well, on...

Speaker #1: looking to We're any kind of software assets in the market . Take our for example , our market expansion , which we did with it , opened as a new space in the R&D of of pharmaceutical .

Speaker #1: So simulating molecules , cutting digital twins , there's there , a basis super which is dynamic , super interesting . So any kind of asset which enriches our portfolio , there is super interesting .

Speaker #1: We also talk about connected hardware devices , which are generating data on the shop floor . Any , any kind of device . We are we have a chance to increase .

Ralf P. Thomas: We need the answer, the answer to be competitive in the future, also to have our industry staying competitive in the future. The answer is speed and agility in innovation. Germany in particular, we do not have resources. Our resources are the people, our resources are innovation. Innovation which is so good that others want to buy it, we are export country. Innovation based on ecosystems, super strong companies, and still automotive, I count on them, but also the supply chain. They need to do actually also what we do, is digitalizing all their processes, work more with digital twins and more work with data. Along with data comes, of course, the whole cybersecurity. Go all in with AI. I mean, I strongly believe and subscribe to that what Jensen said. This is a general-purpose technology.

Roland Busch: We need the answer, the answer to be competitive in the future, also to have our industry staying competitive in the future. The answer is speed and agility in innovation. Germany in particular, we do not have resources. Our resources are the people, our resources are innovation. Innovation which is so good that others want to buy it, we are export country. Innovation based on ecosystems, super strong companies, and still automotive, I count on them, but also the supply chain. They need to do actually also what we do, is digitalizing all their processes, work more with digital twins and more work with data. Along with data comes, of course, the whole cybersecurity. Go all in with AI. I mean, I strongly believe and subscribe to that what Jensen said. This is a general-purpose technology.

Speaker #1: We're looking into that one . I mean , you know that the the new AI factories require new technologies , solid state transformers , DC switching .

Speaker #1: We have in all cases talking what I'm about organic investment as well . But there might be an organic moves , smaller ones , maybe larger ones .

Speaker #1: We have we have the firepower to do that . But it has to make obviously economic sense and and align with our strategic priorities .

Speaker #1: therefore So and in the IIs , AI space in particular , we are watching closely also the startup of smaller companies . I mean , they in some cases they just I are mean , they're , they're market expectations or their value high that is so it's prohibitive .

Speaker #1: But still , in an early space , you find a lot of interesting companies , which is interesting . And it's interesting from two perspectives .

Speaker #1: What's the offering . And and what is the talent which which comes along with that . But typically we would stick to our trajectory , which we had in the past .

Ralf P. Thomas: There's a world before electricity and after. It was a general-purpose technology. Think about it. There's a world before and after AI. The world will use it. Therefore, if we start, if you look at the regulations which we have currently in Europe, AI Act, Data Act, Cybersecurity Act, this is contradicting. It's too much. It's throttling innovation. Why would you derive a regulation which is supposed to protect end consumers? Why would you deploy the same mechanism to B2B business? We are writing contracts. We are taking care about our products. There is a need for regulation, don't get me wrong, but this should be guardrails which ensure that within these guardrails you can go all in with your innovation speed. Therefore, and this is not only about regulations, but also about decision-making.

Roland Busch: There's a world before electricity and after. It was a general-purpose technology. Think about it. There's a world before and after AI. The world will use it. Therefore, if we start, if you look at the regulations which we have currently in Europe, AI Act, Data Act, Cybersecurity Act, this is contradicting. It's too much. It's throttling innovation. Why would you derive a regulation which is supposed to protect end consumers? Why would you deploy the same mechanism to B2B business? We are writing contracts. We are taking care about our products. There is a need for regulation, don't get me wrong, but this should be guardrails which ensure that within these guardrails you can go all in with your innovation speed. Therefore, and this is not only about regulations, but also about decision-making.

Speaker #1: So we are adding incremental medium , smaller sized assets to our software portfolio . We're looking into hardware , but we are also to do a larger moves .

Speaker #1: As you know , like Altium Dogmatics . If it really fits to our portfolio .

Speaker #2: Any questions from the media side , please ?

Speaker #6: Hello. Filippo Santelli from La Repubblica, an Italian newspaper. I have two questions. The first one is on your slightly optimistic outlook for the geopolitical scenario.

Speaker #6: We've seen the U.S. and China go through phases of escalation and de-escalation. It looks like we're in a de-escalation phase right now, but most experts think that in the medium to long term, the two countries are headed towards technological decoupling.

Ralf P. Thomas: We are in a time where we need more and faster free trade agreements. We cannot wait for 10 years when China is doing that in 1 or 2. We need less bureaucracy. We need faster digitalization also of these processes. Just pick one example. If you want to attract talents, you better get your visa process right, that you get these guys and they don't have to wait for 6 months, otherwise they are somewhere else. I can go on and on. I believe we have really a substantial way to really sort out complexity and thwart innovation, throttling governance and regulations in Europe and Germany in order not to lose competitiveness on a global scale. I tell you, neither China nor United States is waiting for us.

Roland Busch: We are in a time where we need more and faster free trade agreements. We cannot wait for 10 years when China is doing that in 1 or 2. We need less bureaucracy. We need faster digitalization also of these processes. Just pick one example. If you want to attract talents, you better get your visa process right, that you get these guys and they don't have to wait for 6 months, otherwise they are somewhere else. I can go on and on. I believe we have really a substantial way to really sort out complexity and thwart innovation, throttling governance and regulations in Europe and Germany in order not to lose competitiveness on a global scale. I tell you, neither China nor United States is waiting for us.

Speaker #6: What makes you so confident that Siemens will stay in a position where it can provide key technological capabilities, both to us and China, in strategic sectors?

Speaker #6: Thinking about semiconductors or aerospace or energy or And the second one is on Europe and its whatever ? industrial and technological competitiveness . It's obviously very high in the agenda .

Speaker #6: do you think But in concrete terms , Europe and European countries are taking the right actions to industrial boost the competitiveness ? Both on the regulatory side and on the investment side ?

Speaker #6: you Thank .

Speaker #1: trigger You something here . So I said you trigger something . So talk about the markets . Number one , the markets themselves .

Speaker #1: When and said it before . Number one is we are sitting on we are serving growth market secular growth markets . So there's not a really 1 to 1 match between the GDP growth and the market growth .

[Company Representative] (Siemens Aktiengesellschaft): Next question comes from Daniela.

Operator: Next question comes from Daniela.

Daniela: Thank you very much. I have two questions, both of them related to Digital Industries, but I'll ask them one at a time. First, on software, Ralf, you've mentioned that the headwinds from the SaaS transition were mostly behind us. Can you comment on sort of now the potential tailwinds on growth and margin based on what we've seen as headwinds, and can we start counting on those in 2026? I'll ask the other after.

[Analyst 2]: Thank you very much. I have two questions, both of them related to Digital Industries, but I'll ask them one at a time. First, on software, Ralf, you've mentioned that the headwinds from the SaaS transition were mostly behind us. Can you comment on sort of now the potential tailwinds on growth and margin based on what we've seen as headwinds, and can we start counting on those in 2026? I'll ask the other after.

Speaker #1: Because as I said before , they're focusing on the higher growth areas . Automation , digitalization , a sustainability and AI , if it comes to technologies , it's it is I would say it's getting harder that you that you have a technology in certain space , in certain space which you scale globally .

Speaker #1: This is a reason why we are more more and going for local , for local development . And not only applications based on a global platform , but genuine local development .

Ralf P. Thomas: Want to ask 2 questions at the same time?

Daniela: You want me to ask now? I was going to wait.

[Analyst 2]: You want me to ask now? I was going to wait.

Ralf P. Thomas: Okay. Okay.

Daniela: Give you time.

[Analyst 2]: Give you time.

Ralf P. Thomas: I mean, first of all, you're right. We are, I would say 80% done with the SaaS transitioning. Not completely, as we mentioned before. Of course, we are seeing positive impact from that. Yeah. We still also have a business that has not been heavily affected from SaaS transition. Thanks God, EDA is working very well too. It still is and will remain a chunky business. The seasonality and the resilience that we aspire with the SaaS transition is not fully affecting the entire portfolio. We discuss that quite frequently. We also have been acquiring two highly attractive companies that are on the path to be integrated. I indicated in my presentation that there will be 120 basis points, give or take, margin impact from integration efforts. There's people-related things.

Speaker #1: Take an example of China . The products which we talked new about , the ones they are , they have all the way local Chinese components down to the silicon .

Speaker #1: This is not the high end five nanometers silicon . You find . Find a lot of that , by the way , is produced in China .

Speaker #1: So the older nodes , the market share coming from China is extremely So we high . do that also because we know they are regulations coming in which which are forcing you to to use also only China silicon on your controls .

Speaker #1: And we do that . We are prepared to do that . We go here all in at the same time . We do that on the other side .

Speaker #1: If we talk about innovation , software defined automation for global market , the United States , this is more based on , on on resources , but also on coming from components there .

Speaker #1: What is what is one ? There's one area obviously which is , which is more critical , which is software . Because software you want to develop once and sell it as much as you can globally .

Ralf P. Thomas: There's a bit of adjustment here and there, so no one can expect this being done in 3 or 4 months, obviously. That's gonna have an impact. There's also a clear opportunity to get into scaling mode on that one, and we feel highly encouraged by the results we achieved so far. We discussed the cloud-based ARR ratio, you know, being very close to 50%. Original plan was 40% by the end of 2025, so we are ahead. Roland has been elaborating on the customer-specific access we have with small and medium companies. The entire rationale of the SaaS transition is bearing fruit now and will be harvested. I know that you or at least some participants would love to hear us talking about software margin already by now.

Speaker #1: And the only restrictions which we see so far, and you could read it also in newspapers, is EDA software. Therein, it's not the whole EDA package; it's the package which is geared for the smaller nodes.

Speaker #1: So five nanometers , which there's an restriction , it was resolved quickly after . And this is the arm wrestling . This is technology on the one side .

Speaker #1: And rare earth material on the other side . And it resolved after three weeks . Would that go away ? I don't know , but but this is the point where you where you also start thinking of can we let's say fork some of the software software platforms as well if need to .

Speaker #1: We would currently have the majority of that. What we are doing there, we believe we can still serve in different areas.

Ralf P. Thomas: We are not yet at that point, you can rest assured that we aspire and continue aspiring and are on a good trajectory to be 1 of the margin leaders in the years to come as well. There's a couple of specifics for those which are not that deep into the detail. Many of the software companies are listed, have shares to pay for, to pay with their key personnel. This will not be one by one translated into the Siemens approach. That's why I have been inviting many of you contributing to getting us to a point to having meaningful metrics once we start talking about them. That metrics should not add another non-GAAP figure to the hundreds of non-GAAP figures floating around already in that field. I will still be happy to listen to every meaningful proposal in that field.

Speaker #1: And you're right; the focus is definitely on semiconductors and, to some extent, dual-use technologies. This whole aerospace and defense sector.

Speaker #1: Yeah . Well on . We the answer . need The answer to be competitive in the future . Also to have our industry staying competitive in the future .

Speaker #1: The answer is speed and agility in innovation . Germany in particular . We we do not have resources . Our resources are the people .

Speaker #1: Our resources are innovation. Innovation, which is so good that others want to buy it. So we are an export country based on innovation, with ecosystems, super strong companies, and still automotive.

Speaker #1: I count on them, but also the supply chain. But they need to do what they need to do. Actually, also what we do is digitalizing all of their processes, working more with digital twins and more work with data. Along with data comes, of course, the whole cybersecurity aspect, going all in with AI.

Ralf P. Thomas: We are committed to make this a success, as you know, and to also share relevant metrics at that point in time when we feel we are mature for it and you can work with that then meaningfully. One last comment, if you allow, you can rest assured that Roland and myself are at least as ambitious as you guys are when it comes to profitability development at our software business.

Speaker #1: I mean , I strongly believe and subscribe to that . What Jensen said this is a general purpose technology . There's a world before electricity and after it was a general purpose technology .

Speaker #1: Think about it . And there's a world before and after AI and the world will use it . And therefore , if we start and if we look at the regulations which we have currently in Europe , AI act data , act , cybersecurity Act , this is contradicting it's too much .

Daniela: Thank you. The other part is regarding the automation part. You've commented some years ago on sort of the challenging competitive environment in China. You then adjusted your offer towards that. Can you give us a little bit of a view right now, sort of have you started to see market share going back up? Should we foresee margins in China in automation could also go up?

[Analyst 2]: Thank you. The other part is regarding the automation part. You've commented some years ago on sort of the challenging competitive environment in China. You then adjusted your offer towards that. Can you give us a little bit of a view right now, sort of have you started to see market share going back up? Should we foresee margins in China in automation could also go up?

Speaker #1: It's throttling innovation . Why would you derive a regulation which is supposed to to to protect and consumers ? Why would you deploy the same mechanism to B2B business ?

Speaker #1: We are writing contracts . We are taking care about about our products . There is a need for regulation . Don't get me wrong .

Ralf P. Thomas: To the later one, yes. Because the Chinese market is still under the potential which we have there and which we see there. This is a general remark regarding our automation business front. Secondly, we see also pick-up not only in the-- we talk about the value for money market. This is where we launch our new products, also in the other segments, higher segments, market is picking up, in particular in the factory automation space. Machine building is still hold back a little bit, but there we are picking up momentum. We see traction in the market of our new products which we launched. There's a reason why, and I said before, this is now a engine which we started. We are about to launch 20 new ones.

Speaker #1: But this should be guardrails , which ensure that within these you guardrails can go all in with your innovation speed . So therefore and this is not only about regulations but also about decision making .

Speaker #1: We are in a time where we need more and faster free trade agreements, and we cannot wait for ten years when China is doing that in 1 or 2. We need less bureaucracy.

Speaker #1: We need faster digitalization . Also , of these processes . Just pick one example . If you want to attract talents , you better get your visa process right , that you get these guys and they don't have to wait six months .

Speaker #1: for Otherwise they are somewhere else so I can go on and on . I believe we have really a substantial way to to really sort out complexity and innovation , throttling governance and regulations in Europe and Germany in order not to lose competitiveness on a global scale .

Ralf P. Thomas: For example, AI is a rebirth, and they would even go global. This is a really super strong platform. Once we do that, it's new products and new products with a cost out, which allows us also to drive our margins at the same time. We are very careful about maintaining our margin. They're still in the very high end. There's higher money to earn on that one. Don't underestimate, if you do it right from the specification to the sourcing to the manufacturing, then you can also drive your margins in that business going forward. It is a volume game, though. Therefore, we have to get traction, and we have to sell more of those in the market. The last point is that it's a different sales motion, too. We are learning that.

Speaker #1: And I tell you, neither China nor the United States is waiting for us.

Speaker #3: Next question comes from Daniela .

Speaker #2: Thank you very much . I have two questions . Both of them related to digital industries . But I'll ask them one at a time .

Speaker #2: First on software . Ralph , you've mentioned that the headwinds from the SaaS transition were mostly behind us . Can you comment on sort of now , the potential tailwinds on growth and margin , based on what we've seen , has headwinds , and can we start counting on those in 2026 ?

Ralf P. Thomas: This value for money addresses different customers, some customers which didn't talk to yet. We reach them also with our digital platform. We talked about super relevant, but you still also need to have some feet on the street. There's a reason why we are happy that we have more. We double our quota-carrying people globally for the automation, but in particular in China. Therefore, it's a combination of having the right products and also gearing our market go-to market for eventually a new customer market segments. We are very confident that we are picking up momentum there.

Speaker #2: And I'll ask the other after .

Speaker #1: Want to ask two questions at the same time ?

Speaker #2: You want me to ask now? I was going to.

Speaker #1: Wait .

Speaker #2: Okay. Give you time.

Speaker #1: I mean , first of all , you're right . We are . I would say 80% done with the SaaS transitioning . Not completely .

Speaker #1: As we mentioned before, and of course, we are seeing a positive impact from that. Yeah, we still also have a business that has not been heavily affected by the SaaS transition.

[Company Representative] (Siemens Aktiengesellschaft): Next question from the media comes from Angela Maier.

Operator: Next question from the media comes from Angela Maier.

Angela Maier: Thank you very much. I have two very short questions. First, on your software business, could you maybe quantify the software margin, the margin of your software business? I think there has been some speculation about it. Is it fair to assume that your software margin is dilutive to the Digital Industries margin? Second question, just to clarify, your growth target of 6% to 9%, does this include any acquisitions? Thank you.

Speaker #1: Thank God Edda is working very well too. It still is and will remain a chunky business. So the seasonality and the resilience that we aspire with the SaaS transition is not fully affecting the entire portfolio.

Speaker #1: We discussed that quite frequently. We also have been acquiring two highly attractive companies that are on the path to being integrated. I indicated in my presentation that there will be 120 basis points, give or take, margin impact from integration efforts.

Speaker #1: There are people-related things. There's a bit of adjustment here and there, so no one can expect this to be done in 3 or 4 months.

Ralf P. Thomas: Well, thank you for the question. I think I answered your first question already by commenting on that, what has been asked before. If we had the intent to share software margin at this point in time, we would have done it. I said also the reasoning for that. We are in the process of completing a very successful SaaS transitioning. We always said when we started to enter into the transition to SaaS, that we will consider sharing metrics after completing the SaaS transition. Being not there, we stick to what we said. The second part of that question was implicitly answered with that as well, because if we talked about the margin levels and the impact on the DI margin at all, we would do exactly that, what we do not do at the moment, share something premature.

Speaker #1: Obviously, that's going to have an impact. But there's also a clear opportunity to get into scaling mode on that one.

Speaker #1: And we feel highly encouraged by the results we have achieved so far. We discussed the cloud-based RR ratio being very close to 50%.

Speaker #1: The original plan was 40% by the end of Q4 2025. So, we are ahead. Roland has been elaborating on the customer-specific access we have with small and medium companies.

Speaker #1: So the entire rationale of this transition is , is bearing fruit now and will be harvested . I know that you , or at least some participants would love to hear us talking about software margin already by now we are not yet at that point , but you can rest assured that we aspire and continue aspiring and are on a good trajectory to be one of the margin leaders in the years to come , as well .

Ralf P. Thomas: I think there's nothing to add.

Roland Busch: Regarding our midterm growth target, 6% to 9%, this is without Siemens Healthineers, and is it without M&A.

Speaker #1: There's a couple of specifics for those which are not that deep into the detail . Many of the software companies are listed have shares to pay for , to pay with their key personnel .

[Company Representative] (Siemens Aktiengesellschaft): I see hands in the second row. John?

Operator: I see hands in the second row. John?

Speaker #1: This will not be one-by-one translated into the Siemens approach; that’s why I have been inviting many of you to contribute to getting us to a point of having meaningful metrics.

Jonathan Mounsey: Thank you. It's Jonathan Mounsey from BNP Paribas. First question, obviously, you've committed today to take Healthineers down to financial asset status, which you also then elaborated as 20% or less. When you exited Energy, I think you already at the beginning made the commitment to a full exit. Why not today make that commitment for Siemens Healthineers? The second question, just thinking out, I would suggest that the day after you deconsolidate Healthineers, you're gonna start getting questions about the rest of the portfolio. Mobility is doing very well. We know that. Healthineers is a good business. Energy is a good business. You exited those. Can you give the sort of synergistic reasons why Mobility maybe fits within the portfolio?

Speaker #1: We once started talking about them, and that metrics should not add another non-GAAP figure to the hundreds of non-GAAP figures floating around already in that field.

Speaker #1: So, I will still be happy to listen to every meaningful proposal in that field. We are committed to making this a success.

Speaker #1: As you know, and to also share relevant metrics at that point in time, when we feel we are mature for it.

Speaker #1: And you can work with that, then meaningfully. But one last comment, if you allow: you can rest assured that Roland and myself are at least as ambitious as you guys are when it comes to profitability development.

Ralf P. Thomas: Let me take the first part of your question, John. I think it's important and first of all, I do not think that we should and can compare the energy listing and exiting to the Healthineers listing and exiting. It was completely different rationale. Don't wanna repeat all that what you know anyhow. Therefore, taking a relevant step at the right point in time, I believe, is a good thing to do. At the moment, we are busily preparing for those crucial steps that it will take to get the spin done. Being a financial investor in the meaning of the word means being a financial investor then, and a financial investor is also many of your clients are, would take prudent decisions then on whether to hold or not an asset at a certain point in time.

Speaker #1: At our software business .

Speaker #2: Thank you . And the other part is regarding the automation part , you've commented some years ago on sort of the challenging , competitive environment in China .

Speaker #2: You then adjusted your offer towards that. Can you give us a little bit of a view right now? Sort of.

Speaker #2: Have you started to see market share going back up? And should we foresee margins in China in automation could also go up?

Speaker #1: So to the latter one , yes , because the Chinese market is still under under the the . Potential which we have there and which we see there .

Speaker #1: So this is a general remark automation regarding our business funds . Secondly , we see also a pickup not only in the talk value , about the the value for money market .

Speaker #1: This is where we launch our new products, but also in the other segments. The higher market segments are picking up, in particular in the factory automation space.

Ralf P. Thomas: We are not at that point yet, so therefore we don't wanna jump to premature conclusions. Maybe you consider that playing with words is the relevant piece. Financial assets are financial assets.

Speaker #1: Machine building is still hold back a little bit , but but there we are picking up momentum . We see traction in the market of our new products , which we launched .

Speaker #1: This is the reason why , and I said before , this is now engine , which we started . We are we are about to launch 20 new ones .

Roland Busch: Mobility is a completely different situation, so let me start with the technology. Currently, I think it's fair to say that Siemens Mobility is playing the technological leadership win regardless whether you talk trains, the efficiency of our trains. Talk about our recent win at SBB. It was not won by the price, it was won definitely by the technology, what we do. Efficiency, maintenance cost, and service cost. Technology, what we do. Predictive maintenance. All that sits on solid Siemens technologies. The signal in the cloud was development not possible without the technology which we talk about in our technology fabric, cybersecurity, the cloud, and machine learning core, which drives the predictive maintenance of our trains. We are saving one train of our opera-- or two trains in some cases, in the fleet because we have an uptime.

Speaker #1: For example . Are reworked and they would even go global . This is a really super , super strong platform . And once we do that , it's new products and new products with a cost out , which allows us also to drive our margins at the same time .

Speaker #1: we are So very careful about maintaining our margin . There . Still , they're still in the very high end . There's higher money to earn on that one , but don't underestimate if you do it right from the specification to the sourcing to the manufacturing , then you can can also drive your margins in that business going forward .

Speaker #1: It is a volume game, though. Therefore, we have to get traction, and we have to sell more of those in the market.

Speaker #1: And the last point is that it's a different sales motion too. We are learning that this value for money addresses different customers.

Speaker #1: customers Some which didn't talk to yet . So we reached them also with our digital platform . We talked about super relevant , but you still also need to have some feet on the street .

Roland Busch: All that is based on the products which we do together with technology, which we're scaling across the company, and Siemens Mobility in particular loses it, including also controls, for example. It goes further. We are genuinely working on a genuine new product development. If you get a tender, that AI gives you an idea how the train looks like, which you should offer based on all the manufactured trains we did in the past. AI can learn it and train it. This is next level, and this is technology which we bring to the party and make out of Siemens Mobility technology that what it is today, which is a clear margin leading. Wait for our new Novo trains once they hit the market, how they look like. I go along that supply chain management.

Speaker #1: There's a reason why we're happy that we have double more. We have our quota-carrying people globally for the automation, but in particular in China.

Speaker #1: So therefore it's a combination of having the right products and also gearing our market . Go to market for , for eventually new customer market segments .

Speaker #1: are very confident But we that we are up picking momentum . There . And .

Speaker #2: from the Question media comes from Angela Meyer.

Speaker #7: Thank you very much . I have two very short questions . First , on your software business , could you maybe quantify the software margin as the margin of your software business ?

Speaker #7: I think there has been some speculation about it. And is it fair to assume that your software margin is dilutive to the Digital Industries margin?

Roland Busch: I mean, it's commodities, it's steel, green steel, aluminum, green aluminum. This is a super leverage what we do there to make... The customers are asking for that. We need to also offer that without have a super impact on our cost. The same holds true for hardware and the like. The global, the global footprint which we support. Financing, super relevant. I mean, in many, many cases we have a very good combination. It goes to business synergies. I mean, I will talk a little bit later in my intro for the breakouts about one example, Paris Metro line, where we are jointly working on a system. Siemens Smart Infrastructure comes in electrification. They come in with building technology for the surveillance part, any stations, tunnels, controls.

Speaker #7: And second question , just to clarify your growth target of 6 to 9% , does this include any acquisitions ? Thank you .

Speaker #1: Thank you for the question . I think I answered your first question already by commenting on that . What has been asked before , if we had the intent to share software margin point in at this would have done it .

Speaker #1: I said also, the reasoning for that is we are in the process of completing a very successful SaaS transition. We always said when we started to enter into the transition to SaaS that we would consider sharing metrics after completing the SaaS transition.

Roland Busch: This is a lot where we can do together. You don't see that because it works in very many cases in projects where we are systemic. Egypt, it's a bigger one. And last but not least, they are paying very well, not only into our business and cash flow, but also into our sustainability agenda. We are really making a big difference there. They are eligible to 100% aligned with 80%. This is where we are talking about a synergetic portfolio for industry, infrastructure and transport, which is the core of our Siemens portfolio.

Speaker #1: So being not there , we stick to what we said . And the second part of that question was implicitly answered with that as well , because if we talked about the margin levels and impact on the the margin die at all , we would do exactly What we do not do that .

Speaker #1: at the moment share something premature I and think there's nothing to add our mid-term growth targets , regarding 6 to 9% . This is without Healthineers .

Speaker #1: Is it and Siemens without M&A?

Roland: Looking at the time, we have time for one last question. Martin, you wanna close it off?

Roland Busch: Looking at the time, we have time for one last question. Martin, you wanna close it off?

Speaker #3: Let's see .

Speaker #2: Hands in the second row .

Speaker #5: John thank you . It's Jonathan

Martin: Yes. Thank you. I just want to come back to the outlook for profitability. You've talked about prudence in 2026 within DI, but also the confidence in the midterm. When we look at your EPS guidance, it doesn't imply a huge amount of margin upside at the group level. You have talked about some incremental investments in innovation and things like that. When we think about that bridge from revenue growth to EPS growth, why should we expect a higher amount of growth coming from increased profitability? The second question, which is kind of linked to that, is obviously your leverage will drop when you deconsolidate Healthineers. Your balance sheets deployment capability goes up significantly either through buybacks or M&A.

[Analyst 3]: Yes. Thank you. I just want to come back to the outlook for profitability. You've talked about prudence in 2026 within DI, but also the confidence in the midterm. When we look at your EPS guidance, it doesn't imply a huge amount of margin upside at the group level. You have talked about some incremental investments in innovation and things like that. When we think about that bridge from revenue growth to EPS growth, why should we expect a higher amount of growth coming from increased profitability? The second question, which is kind of linked to that, is obviously your leverage will drop when you deconsolidate Healthineers. Your balance sheets deployment capability goes up significantly either through buybacks or M&A.

Speaker #8: From BNP

Speaker #8: Paribas . So first question . Obviously you've committed today to take Healthineers down financial asset status , to which you also then elaborated was 20% or less exited when you .

Speaker #8: you already at the energy I think beginning made the full exit . Why today ? Make that commitment not for Siemens Healthineers . And the second question , just thinking out , and I would suggest that after you the day Deconsolidate Healthineers , you're going to start getting about questions the rest of the portfolio .

Speaker #8: Mobility is very doing well . We know that . But then good Healthineers is a business . Energy is a good business . You exited those .

Martin: When we think about that EPS guidance, is that based on the portfolio as it is today or including some of the optionality for deploying your balance sheets in the future? Thank you.

[Analyst 3]: When we think about that EPS guidance, is that based on the portfolio as it is today or including some of the optionality for deploying your balance sheets in the future? Thank you.

Speaker #8: Can you give the sort of reasons why may fits within the portfolio ?

Speaker #1: Let me first part of your take I think it's important . the And we John . first of all , I do not we think can compare should and energy the listing and exiting to the Healthineers exiting and Rationale .

Ralf P. Thomas: Yeah. Thank you, Martin. I think it's still fair to call it prudent and not conservative because, I mean, there's such a hell lot of volatility in the markets and also the geopolitical aspects that Roland has been discussing before, that it's really hard to predict in a fast moving short cycle business what's gonna happen when and at which point in time. We have been deliberately choosing a wide range for both top line and bottom line on the DI side to make sure that we know what we do and can live up to our own commitments. That doesn't exclude being better than the midpoint if circumstances allow. Of course, when it comes to top line growth dropping through, it's about investments and capital allocation.

Speaker #1: Don't completely was repeat all that . What listing . So anyhow therefore a right point in I step at the thing to time , do different . relevant is a good you know believe busily taking for .

Speaker #1: Those preparing steps that it at the spin take to crucial get the done will . Being financial a meaning of the in the word financial means and a being a many of are financial investor would prudent decisions .

Speaker #1: take also Then on hold an whether to certain investor clients point in your point yet . So asset at a or don't not at therefore , time .

Ralf P. Thomas: When we talk capital allocation, we talk about dividends and share buyback on the one hand side, but also on investing. I would like to repeat what Roland said in his presentation and what I tried to summarize in mine. I mean, we have been spending such a huge amount of money in shaping a technology leader in R&D. We will continue to do that. We are the AI-prone leader in the industrial space. Why missing out that opportunity? We will still well balance investments and drop through to bottom line. That's what we did, I believe, meaningfully well throughout the last decade, and we will continue doing that. I'm absolutely convinced of that. Therefore, it's both investing into future at a point when paradigm is shifting, that's crucial.

Speaker #1: therefore we premature want to that conclusions maybe you investor then , But words as that the with relevant piece , financial assets are assets So on mobility is a .

Speaker #1: me start situation . technology with the . I think say different that currently Siemens Mobility playing in it's fair to the technological is when talk whether you trains , efficiency leadership trains , regardless talk about our recent win the at SBB .

Speaker #1: It It was of our price . was not definitely by the won the technology . do by the ? Efficiency , maintenance What do we , cost , service won by What do we do maintenance .

Ralf P. Thomas: To be a leader of the gang instead of a follower that will never make it again to the lead. Therefore, this is a part of it, a reinvesting rationale, and that includes CapEx as well. On the other hand, that's why I mentioned and underpinned it a couple of times, the ultimate yardstick, I believe, is free cash flow. We are fully committed to delivering on those high levels that we delivered before, which again, is an enabler to keep the high level of total shareholder return. That is also in part a bit answering the second part of your question, where maybe we have a very ambitious share buyback program, which is ahead of time in a meaningful format. If and when we complete that, potentially ahead of time, there would be another one.

Speaker #1: All that sits on Predictive Siemens technologies . The . signal in the cloud was solid possible without Technology . the developing . , which we talk about in our technology .

Speaker #1: Fabric . Cybersecurity , technology learning , machine which core , predictive drives the of our We are trains . maintenance are saving or two trains in some cases in the one train fleet , because we have an we uptime that .

Speaker #1: is based on on All the the products which we do technology , with together across the company scaling and particular , loses it , including also example , which we're further controls , for genuinely work it goes a genuine new you get a that AI gives you an idea how the how the train looks like , should which you offer development .

Speaker #1: manufacturer trains we did in the past , all the learn it and train based on it . So this a next AI can and this is is this is technology which to the bring level and make , we party out of Siemens make Mobility technology that what it is is a margin leading for our So if Nuovo once they new and wait how they look So along that supply then I market , management .

Ralf P. Thomas: You can also expect us to, again, prudently share the ultimate outcome, free cash flow in a meaningful way with a progressive dividend, with a share buyback program, and also with meaningful share price development on the way forward. That's what we are committed to, and that's what we feel encouraged with. Again, I know that fiscal '26, with that heavy impact on exchange rate, is kind of hard to swallow. You may also recognize that in 12 years, I have the pleasure to do this annual press conferencing. We never used exchange rate as a parameter for guiding, but the relevance and magnitude in this fiscal year '26 is a mandate and an imperative to do so to not mislead anyone. Midterm perspectives, we will be fine. Short term, as a matter of fact, will be impacted by exchange rate.

Speaker #1: hit the I mean , it's commodities , like . steel , green go aluminum , green aluminum . This is leverage . What we do make customers .

Speaker #1: And they are asking for a need to, it's also there to offer that trains having a without super steel. We, our cost, super.

Speaker #1: same holds impact on The true the global the global footprint which we support financing for super that . . relevant . I mean , in The like cases , we have combination .

Speaker #1: Then it goes to business. I will talk a little bit later in a good intro for my synergies. Breakouts, I mean.

Speaker #1: one example , Paris Metro About a on a jointly on system Siemens smart infrastructure comes in They come in , in , building technology for the surveillance in with part electrification .

Speaker #1: stations tunnels , controls . therefore this So is a lot where we can do together . . don't see that it Any because works in cases many in projects in are where we systemic Egypt , it's a bigger one .

Ralf P. Thomas: If you add back this EUR 0.70 to 0.80 in EPS, that will be only lost by translation of US dollar if you take it black or white. If you add that back, you will see that we clearly double-digitally increasing EPS. I think operationally, that makes a hell lot of sense to steer with a slow but steady hand and not overreacting.

Speaker #1: So therefore and last but not least , they are paying very well not only into into our our into and cash business our our flow , also agenda .

Speaker #1: really making are a big difference . but There . sustainability They eligible to We aligned with 80% . So a this are it's is very , very talking about a synergistic portfolio for industry infrastructure and transport , which is the core of our Siemens portfolio

Roland: Thank you, Roland. Thank you, Ralph. Thank you everyone for joining. We will now close our webcast. The deep dive sessions after the lunch break will not be streamed, but they will be available on our website as a replay after the event. We now will have a lunch break until 12:00PM, and then we will kick off our deep dive sessions.

Operator: Thank you, Roland. Thank you, Ralph. Thank you everyone for joining. We will now close our webcast. The deep dive sessions after the lunch break will not be streamed, but they will be available on our website as a replay after the event. We now will have a lunch break until 12:00PM, and then we will kick off our deep dive sessions.

Speaker #9: ?

Speaker #4: Thank you . I want .

Speaker #10: come back Yes . outlook To for to the profitability . You've talked about prudence in but Dai , also the in the 2026 within mid-term .

Ralf P. Thomas: Let me make a sales pitch for the team which are going to be on stage. What you will see, you will see our leaders in factory automation. You will see Vasi Philomin, who joined us. He is one of the top LLM experts in the world, building up a team. You will see our experts on verticals. By the way, also some exhibitions there. You don't want to miss out on that. Be back sharp at 12. Thank you.

Speaker #10: But when we look at your EPs guidance, it doesn't imply a huge amount of margin upside at the group level. And you have talked about some investments in innovation and things like that.

Speaker #10: But think about that incremental bridge from revenue when we talk about EPs growth; why shouldn't we expect a higher growth coming from increased profitability?

Speaker #10: And the second question, which is kind of that, is leverage drop will amount to when you obviously deconsolidate Healthineers. Your balance sheet deployment capability goes up either through buybacks or M&A.

Speaker #10: When we think about that, EP's guidance, is that based on the portfolio as it is today, including some of that optionality for deploying your balance sheet in the future?

Speaker #10: you Thank

Speaker #1: Yeah . Thank you . Martin

Speaker #1: it's still fair to prudent call it and not because , I mean , there's such a lot of . conservative volatility in the markets and also the geopolitical aspects that Roland has been discussing before that it's really hard to predict in a fast moving short cycle business what's going to happen when and at which point in time .

Speaker #1: So, we have been choosing a wide, deliberate range both for the top line and bottom line on the D side to make sure we know what we do and can live up to our own commitments.

Speaker #1: That doesn't exclude being better than the midpoint . If circumstances allow , then of course , when it comes to top line growth dropping through , it's about investments and capital allocation .

Speaker #1: When capital allocation , we talk we talk about dividends and share buybacks . On the one hand side , but also on investing .

Speaker #1: And I would like to repeat what Roland said in his presentation try to and what I summarize in mind . I mean , we have been spending such a huge amount of money in shaping a technology leader in R&D .

Speaker #1: will We do that . We are the AI prone leader in the industrial space . Why missing out that we opportunity ? And will still well balance investments and drop through to bottom line .

Speaker #1: That's what we did, I believe meaningfully well throughout the last decade, and we will continue doing that. I'm absolutely convinced of that.

Speaker #1: So therefore, it's both investing into the future at a point in time when shifting. That is crucial to be a leader of the gang instead of a follower.

Speaker #1: That will never make it again . To the lead . So therefore this is a part of it . Reinvesting rationale . And that includes CapEx as well .

Speaker #1: On the other hand , that's why I mentioned and underpinned that a couple of times . The ultimate the ultimate yardstick , I believe , is free cash flow .

Speaker #1: And we are fully committed to delivering on those high levels that we delivered before, which again is an enabler to keep the high level of total shareholder return.

Speaker #1: And also that is in part , a bit . Answering the second part of your question , maybe we have a very ambitious share buyback program , which is ahead of time in a meaningful format .

Speaker #1: If and when we complete that , potentially ahead of time , there would be another one . And you can also expect us to again , prudently share the ultimate outcome .

Speaker #1: Free cash flow in a meaningful way, with a progressive dividend, a share buyback program, and also with meaningful share price development on the way forward.

Speaker #1: That's what we are committed to , and that's what we feel encouraged with . Again , I know that fiscal 26 , with that heavy impact on exchange rate , is kind of hard to swallow .

Speaker #1: But you may also recognize that in 12 years , I have the pleasure to do this annual press conference . We never used exchange rate as a parameter for guiding , but the relevance and magnitude in this fiscal year 26 is a mandate and an imperative to do so , to mislead not anyone .

Speaker #1: So mid-term perspectives, we will be fine short term. As a matter of fact, we will be impacted by the exchange rate. If you add back the €0.70 to €0.80 in EPs, that will be only lost by translation of the US dollar.

Speaker #1: If you take it black or white . If you add that back , you will see that we clearly double digitally increasing EPs .

Speaker #1: I think operationally that makes a whole lot of sense to steer with a slow but steady hand and not overreacting.

Speaker #9: Thank you Roland . Thank you Ralf , and thank you everyone for joining . Us . We will now close our webcast , the Deep Dive Sessions , after the lunch break will not be streamed , but they will be available on our website as a replay after the event .

Speaker #9: We now will have a lunch break until 12 noon , and then we will kick off our deep dive sessions .

Speaker #1: And let me let me make a sales pitch for the team , which are going to be on stage . What you will see .

Speaker #1: We will not . We will see our leaders in in factory automation , you will see who joined us . He is one of the top , top experts in the world , building up a team .

Speaker #1: So you will see our experts on verticals . By the way . Also some exhibitions there . You don't want to miss out on that .

Q4 2025 Siemens AG Earnings Call and Business Update - Part 2

Request a DemoDemo

SIE

Siemens

Earnings