Siemens Energy Ag · XETR:ENR
Siemens Energy — Q4 FY2021 Earnings Presentation
38 slides from Siemens Energy's earnings presentation, Nov 10, 2021
Slide 1: Solid finish to the year with strong orders and cash
Solid finish to the year with strong orders and cash Christian Bruch, President and CEO Siemens Energy Maria Ferraro, CFO Siemens Energy Analyst presentation Q4 FY21 and FY21 Munich, November 10, 2021 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 2: Disclaimer
Disclaimer INFORMATION AND FORWARD-LOOKING STATEMENTS This document contains statements related to our future business and financial performance, and future events or developments involving Siemens Energy that may constitute forward-looking statements. These statements may be identified by words suc
Slide 3: CEO section
CEO section Christian Bruch, CEO Analyst Call | Q4 FY21 3 2021-11-10 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 4: Key Messages
Key Messages Market Environment • Solid order environment in Transmission and Generation • Industrial Applications benefits from increased propensity to invest Q4 FY21 Financial Performance • Solid order trends in wind, short-term market dynamics challenging • Orders: +30.2%; order backlog at €84bn
Slide 5: Time flies ...
Version 18 Time flies ... 28.09.2020 21.12.2020 19.03.2021 June 2021 30.09.2021 Siemens Energy Listing MDAX Hydrogen ESG First full Business Börse Frankfurt Entry Day Roadshow Year ended 01.09.2020 07.12.2020 10.02.2021 22.03.2021 15.09.2021 CMD Sustainability Report 2020 Virtual DAX Agreement with
Slide 6: Solid progress in FY21 to become the most valued energy technology company in the world
Solid progress in FY21 to become the most valued energy technology company in the world Leader in energy Service Business as Reach operational More EBITA and more Developing future Leading portfolio industry a core value driver performance cash portfolio with focus in the industry (after Spin-off) o
Slide 7: Our businesses support our customers to accelerate the energy transition along the three pillars
Version 18 Our businesses support our customers to accelerate the energy transition along the three pillars SGRE realizes leading-edge renewable Generation decarbonizes power power generation generation • Market-leading offshore competence • Coal-to-X and Upgrades • Global onshore offering • Decentr
Slide 8: Q4 FY21 awards already reflect the energy transition
Version 18 Q4 FY21 awards already reflect the energy transition Reducing the CO2 footprint & Low- or zero-emission Transport and storage energy consumption in power generation of energy industrial processes Coal to gas Connecting renewable Reduction of emissions CO2 reduction with highest energy to
Slide 9: Gas and Power progress report for FY21
Gas and Power progress report for FY21 Financial Performance Operational Performance Portfolio and Market Trends • Strong order growth driven by • Rightsizing and off-shoring on • Focus on decarbonization (more H2 Generation regaining market share in gas track capabilities, focus on hybrid solutions
Slide 10: Implementation of ESG framework well on track
Version 18 Implementation of ESG framework well on track – ESG performance recognized by rating agencies Our Environmental impact Our Social impact Our Governance approach Decarbonization Inclusion, Diversity and Health & Safety Compliance and good Governance • Exit from new built coal power plants
Slide 11: CFO section
CFO section Maria Ferraro, CFO Analyst Call | Q4 FY21 11 2021-11-10 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 12: Focused on Sustainable Shareholder Value Creation
Focused on Sustainable Shareholder Value Creation Gas and Power achievements in FY21 1 Strong business foundation with large order backlog and resilient service business • High order backlog / Book-to-bill >1 • Adjusted EBITA before SI sharply improved 2 Clear path to margin improvement with ongoing
Slide 13: Siemens Energy Group at a glance FY21
Siemens Energy Group at a glance FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (3)%/ (1)%1 +4% / +6%1 n/a 34.0 33.0 27.5 28.5 661 9.3 9.4 +1% 18.1 19.1 +5% (17) FY20 FY21 FY20 FY21 (0.1)% 2.3% Service New Unit FY20 FY21 Order Backlog2 Book-to-Bill Ratio Free Cash Flow3 €84bn 1.1
Slide 14: Siemens Energy Group at a glance Q4 FY21
Siemens Energy Group at a glance Q4 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +30% / +29% 1 10.5 +7% / +5%1 9.1 8.2 7.4 7.6 7.3 n/a 7.0 6.5 6.5 5.9 366 288 70 54 (46) Q4 FY20 Q1 Q2 Q3 Q4 FY21 Q4 FY20 Q1 Q2 Q3 Q4 FY21 0.9% 5.6% 4.4% 0.7% (46) (0.6)% Q4 FY20 Q1 Q2 Q3 Q4 FY21 •
Slide 15: Net Cash Position
Net Cash Position Net cash / (Net debt) as of September 30, 2021 (in €m) 5,333 5,432 99 Solid investment grade S&P: BBB outlook stable (2,728) (189) 2,515 FY22 expected cash-out (830) • Dividend payment (€72m) 1,596 (89) • Restructuring (>€200m) • Non carve-out countries (>€200m) Cash and Receivable
Slide 16: Gas and Power at a glance FY21
Gas and Power at a glance FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +8% / +11%1 >+200% +1% / +4%1 20.9 849 19.3 18.1 18.4 7.6 7.5 (1)% 254 10.4 10.8 +4% FY20 FY21 FY20 FY21 1.4% 4.6% Service2 New Unit2 FY20 FY21 Order Backlog3 Book-to-Bill Ratio Free Cash Flow4 €51bn 1.14 €1
Slide 17: Gas and Power at a glance Q4 FY21
Gas and Power at a glance Q4 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +40% / +39%1 +12% / +10%1 6.2 5.2 5.4 +284% 5.0 4.8 4.6 4.4 4.5 4.3 4.2 267 231 187 165 43 Q4 FY20 Q1 Q2 Q3 Q4 FY21 Q4 FY20 Q1 Q2 Q3 Q4 FY21 0.9% 6.2% 4.5% 5.1% 3.1% Q4 FY20 Q1 Q2 Q3 Q4 FY21 • Sharp incre
Slide 18: Focus on asset management
Focus on asset management ONWC FY23 reduction target already achieved Gas and Power • Successful extension of payment terms In € bn FY19 FY20 FY21 with suppliers Trade receivables 3.9 3.8 4.2 Inventories 5.3 4.7 4.5 • Optimized project payment schedule Trade payables (2.1) (2.1) (2.8) and more strin
Slide 19: Guidance and considerations
Guidance and considerations SE • Revenue development of (1)% to 3% comparable1 • Adj. EBITA margin before SI of 3% to 5% • A sharp improvement towards our target of positive Net income FY22 Guidance • Free cash flow pre tax in a positive mid-triple-digit million Euro range GP • Revenue growth of 1%
Slide 20: Financial Priorities for FY22
Financial 1 Cost control to retain restructuring savings Priorities for FY22 2 Tight management of net working capital 3 More transparency Analyst Call | Q4 FY21 20 2021-11-10 © Siemens Energy, 2021
Slide 21: Management Priorities for FY22
1 Deliver on the fundamentals at GP and SGRE Management Priorities for 2 Focus on supply chain, logistics and raw materials FY22 3 Refine operating model and shape organization towards the three pillars 4 Focus the company on sustainable growth elements Analyst Call | Q4 FY21 21 2021-11-10 © Siemens
Slide 22: We are #TeamPurple #WeEnergizeSociety
We are #TeamPurple #WeEnergizeSociety Meet us at our CMD May 23-24, 2022 in Berlin Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 23: Financial outlook and framework
Financial outlook and framework Actuals Profit forecast Mid-term target FY20 FY21 FY21 FY22 FY23 Revenue €18.1bn €18.4bn 2%-6% 1%-5% Gas and Power % Change y-o-y2 (3.1)% 1.5% Adj. EBITA before Special Items €254m €849m 3.5%-5.5% 4.5%-6.5% 6%-8% % Margin before Special Items 1.4% 4.6% Restructuring c
Slide 24: Questions & Answers
Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q4 FY21 24 2021-11-10 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 25: Financial Calendar / Contact Investor Relations
Financial Calendar 2021 2022 Nov 10 Nov 30 Dec 2 Dec 9 Feb 09 Q4 FY21 Goldman Sachs Credit Suisse Berenberg European Q1 FY22 Industrial Conference Annual Industrials Conference Conference Contact Investor Relations Michael Hagmann Tobias Hang Harald Albrecht Head of Investor Relations tobias.hang@si
Slide 26: Appendix
Appendix Analyst Call | Q4 FY21 26 2021-11-10 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 27: Special Items
Special Items Reconciliation of Adj. EBITA before Special Items In €m Q4 FY20 Q4 FY21 FY20 FY21 Gas and Power Gas and Power • Personal restructuring costs (severance) Adj. EBITA before Special Items 43 165 254 849 Mainly relate to the agreement with the Works Personal restructuring (102) (222) (133)
Slide 28: Net Income Transition
Net Income Transition Siemens Energy In €m Q4 FY20 Q4 FY21 FY20 FY21 PPA3 Gas and Power (194) (67) (734) 377 • Q4 reduction reflects lower base due to write- SGRE (80) (224) (711) (296) down of intangibles in prior year Reconciliation to Siemens Energy (58) (37) (98) (93) Financial result Adj. EBITA
Slide 29: Cash Flow Statement
Cash Flow Statement Siemens Energy In €m Q4 FY20 Q4 FY21 FY20 FY21 Net income (loss) (390) (383) (1,859) (560) CAPEX Amortization, depreciation and impairments 394 386 2,051 1,463 • Decrease by €26m in Q4 Change in operating net working capital Contract assets 94 127 91 (322) Free cash flow pre tax
Slide 30: Nominal vs comparable growth rates
Nominal vs comparable growth rates Siemens Energy In €m Q4 FY20 Q4 FY21 % nom. % comp.1 FY20 FY21 % nom. % comp.1 Gas and Power 4,440 6,231 40.3 39.4 19,337 20,880 8.0 11.0 SGRE 2,564 2,884 12.5 11.5 14,736 12,185 (17.3) (15.7) Reconciliation to Siemens Energy (15) (16) n/a n/a (71) (64) n/a n/a Tot
Slide 31: Disaggregation of external revenue
Disaggregation of external revenue Siemens Energy In €m Q4 FY20 Q4 FY21 % nom. FY20 FY21 % nom. Types of activities in Gas and Power New units 2,737 3,277 17.9 10,393 10,783 3.8 Service contracts 2,007 2,104 4.9 7,553 7,490 (0.8) Types of business in SGRE Wind turbines 2,325 2,292 (1.4) 7,714 8,272
Slide 32: Gas and Power: Development by businesses Q1-Q4 FY21
Version 18 Gas and Power: Development by businesses Q1-Q4 FY21 in % nom. y-o-y Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Grading system Gas and Power - -- ++ +++ >10% +++ Order Generation - -- -- +++ 5% - 10% 0% - 5% ++ + growth Industrial Applications - --- +++ +++ 0% - (5)% - Transmission --- ++ +++ +++ (5)
Slide 33: Profit and Loss Statement (I)
Profit and Loss Statement (I) Siemens Energy In €m Q4 FY20 Q4 FY21 FY20 FY21 Revenue 7,629 8,196 27,457 28,482 Cost of sales (6,954) (7,493) (25,318) (25,066) Gross profit 676 703 2,139 3,417 Gross profit margin 8.9% 8.6% 7.8% 12.0% Research and development expenses (296) (346) (985) (1,155) R&D as
Slide 34: Profit and Loss Statement (II)
Profit and Loss Statement (II) Siemens Energy In €m Q4 FY20 Q4 FY21 FY20 FY21 Gas and Power 4,794 5,350 18,120 18,386 SGRE 2,868 2,863 9,483 10,198 Reconciliation to Siemens Energy (33) (17) (147) (101) Total Revenue 7,629 8,196 27,457 28,482 Gas and Power 43 165 254 849 SGRE 30 (176) (249) (99) Rec
Slide 35: Statement of Financial Position
Statement of Financial Position Siemens Energy In €m Sep. 30, 2020 Sep. 30, 2021 Goodwill and other intangible assets 13,215 13,099 Property, plant and equipment and other non-current assets 7,268 7,645 Inventories 6,527 6,146 Trade and other receivables 4,963 5,110 Contract assets 4,545 4,913 Cash
Slide 36: Profit Bridge from SGRE to SE disclosure Q4 FY21
Profit Bridge from SGRE to SE disclosure Q4 FY21 Profit Bridge from SGRE1 to SE2 disclosure (in €m) (177) (48) 48 (176) 0 0 (55) 55 (224) (279) EBIT Integration & PPA effects3 EBIT PPA effects3 Financial Cons. and Acc. Adj. EBITA Special Items4 Adj. EBITA (underlying) Restructuring (as reported) Inc
Slide 37: Profit Bridge from SGRE to SE disclosure FY21
Profit Bridge from SGRE to SE disclosure FY21 Profit Bridge from SGRE1 to SE2 disclosure (in €m) Integration & Adj. EBITA EBIT Restructuring EBIT Financial Cons. and Acc. Adj. EBITA (before (underlying) Cost PPA effects3 (as reported) PPA effects3 Income Differences (as reported) Special Items4 Spec
Slide 38: Framework for value creation
Version 18 Framework for value creation Performance Portfolio Covered in incentive framework Research and Portfolio Development optimization 6.5-8.5% ≥8% ~€1bn Resize Adj. EBITA margin before Adj. EBITA margin annual spending the portfolio Special Items Siemens Energy Siemens Energy mid-term target1