"THE PURCHASE OF ALTAIR CAN CHANGE A LOT." When Siemens AG’s President and CEO, Roland Busch, presented the company's figures for the broken fiscal year 2024 (up to September 30) at the end of last week, he was quite satisfied with a lot, but not everything. In total, Siemens AG generated revenues of €75.9 billion and a net of 9.0 billion euros. "A good result," he said, not least given the tough global environment. Sure, revenues for the entire operation increased by a relatively modest 3% compared to fiscal year 2023, when they stood at €74.9 billion. But success in financial and commercial terms depends not only on the size of the revenue level; profit and future prospects are also extremely relevant parameters here, and here Siemens can point to several positive factors:
"In another successful fiscal year, we delivered record profit and stringently executed our strategy," Busch summed up.
In general, he noted that it benefited in particular from continued strong demand for electrification, transport and industrial software offerings. That is, much of what lies within the scope of what the company's PLM division, Siemens Digital Industries Software, produces. This part of the business also seems to be going really well with good growth in software revenues and related services, not least regarding the development on the SaaS, Xcelerator-as-a-Service and cloud side.
It looks more challenging for the automation division, although; something that Busch said was offset by very strong growth in the Mobility division and a considerable increase in Smart Infrastructure.
From a PLM point of view, however, it is of course interesting to see continued strong growth. In this, SaaS growth (Software-as-a-Service) is of particular interest. This is how the head of the PLM division, Tony Hemmelgarn, comments to PLM&ERP News on the development regarding the item abbreviated ARR, Annual Recurring Revenues, a measure of annual subscription revenues, type SaaS:
"We are very pleased with the SaaS transition,” he says. “Over the past three years, we have delivered impressive results, and we will continue this momentum in 2025. Our ARR growth reached a very healthy level of plus 14% y-o-y and our plan is to maintain the ARR growth in the low plus tens in FY2025, which is above our original 2021 CMD communicated target of 10% annual ARR growth.
Hemmelgarn further says: “Speaking of our SaaS transition, the cloud portion is now at 1.8 billion euros, corresponding to 42% of ARR, exceeding our target of 40% a year ahead of schedule.”
Bright future prospects, then, but there’s more, Roland Busch: "Starting in fiscal 2025, we will take Siemens to the next level of value creation. We will continue to invest in R&D and M&A to ensure faster growth based on our technical strengths and ability to scale across industries. Our planned acquisition of Altair strengthens our leadership in industrial AI."
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