Siemens Energy Ag · XETR:ENR
Siemens Energy — Q1 2021 Earnings Presentation
34 slides from Siemens Energy's earnings presentation, Feb 2, 2021
Slide 1: Solid start into FY21
Solid start into FY21 Christian Bruch, President and CEO Siemens Energy Maria Ferraro, CFO Siemens Energy Analyst presentation Q1 FY21 Munich, February 2, 2021 Siemens Energy is a registered 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 | Q1 FY21 3 2021-02-02 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 4: Q1 FY21 Key Messages
Q1 FY21 Key Messages Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (26)% / (21)%1 +3% / +8%1 €366m Solid start into FY21 10.0 7.4 6.4 6.5 Free Cash Flow pre tax Q1 FY20 Q1 FY21 €(388)m Q1 FY20 Q1 FY21 Highlights, Milestone MDAX Entry on Dec. 21, first sustainability report published FX headw
Slide 5: Covid-19 update
Covid-19 update Employees Focus on Health and Safety All fabrication sites operating; 20% with slightly reduced capacity Business continuity No major supply chain interruptions Deferrals of orders, projects and outages, limitations of site access Business impact Lower discretionary cost Digital serv
Slide 6: Executing our strategy
Executing our strategy Detailed measures identified to deliver additional savings >€300m1 Focus and deliver on Negotiations with the work council regarding further cost-out fundamentals measure initiated with focus on: • Operational cost improvement • Corporate cost optimization Novatek – More susta
Slide 7: Q1 FY21 awards & milestones
Q1 FY21 awards & milestones Latin America: sustainable and efficient UK: transformers for Scotland’s single Germany: climate neutral power supply transformation of FPSO operations largest source of renewable energy for Leipzig • EPC contract for eight complete topside • Supply of 114 low-loss distri
Slide 8: SE & SGRE to unlock a new era of green hydrogen production
Version 18 SE & SGRE to unlock a new era of green hydrogen production ~€120m Projects are first major step to develop an industrial-scale system capable of harvesting green over five years to develop a fully hydrogen from offshore wind integrated offshore wind-to- hydrogen solution Developments will
Slide 9: ESG Update
Version 18 ESG Update ESG is anchored in SE’s strategy with focus on 5 high impact UN Sustainability Goals: • Affordable and Clean Energy • Climate Action • Industry, Innovation and Infrastructure • Gender Equality • Decent Work and Economic growth Concrete goals • 100% green electricity consumption
Slide 10: ESG Agenda and initiatives
Version 18 ESG Agenda and initiatives Announcement High density H2 Coal ramp down Turbo compression 100% H2 fired >100MW gas turbine Blue Portfolio NextGen Silyzer 170kV Circuit Br. FY21 FY23 FY25 FY30 100% 25% Sustainability Renewable Women in Electricity Climate Report Top Leadership (own consumpt
Slide 11: Financial section
Financial section Maria Ferraro, CFO Analyst Call | Q1 FY21 11 2021-02-02 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 12: Focused on Sustainable Shareholder Value Creation
Focused on Sustainable Shareholder Value Creation Strong business foundation with large 1 order backlog and resilient service business 2 Clear path to margin improvement with ongoing cost programs 3 Asset excellence – Cash upside from rigorous working capital management Analyst Call | Q1 FY21 12 202
Slide 13: Siemens Energy Group at a glance Q1 FY21
Siemens Energy Group at a glance Q1 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (26)% / (21)%1 10.0 +3% / +8%1 7.4 n/a 6.4 6.5 366 2.2 2.1 (2)% 4.2 4.4 +5% (74) Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 (1.2)% 5.6% Q1 FY20 Q1 FY21 Services New Unit Order Backlog2 Book-to-Bill Ratio Free
Slide 14: Siemens Energy Group at a glance Q1 FY21
Siemens Energy Group at a glance Q1 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (26)% / (21)%1 +3% / +8%1 n/a 10.0 9.4 7.6 366 7.6 7.0 7.4 6.8 6.7 6.5 6.4 200 (74) 70 (213) (1.2)% (1.2)% +2.9% 2.9% (213) (3.2)% 0.9% 5.6% Q1 FY20 Q2 Q3 Q4 Q1 FY21 Q1 FY20 Q2 Q3 Q4 Q1 FY21 Q1 FY2
Slide 15: Special Items
Special Items Reconciliation of Adj. EBITA before Special Items Gas and Power In €m Q1 FY20 Q1 FY21 • Personal Restructuring costs (severance) Gas and Power Takes into account progress on existing programs and new restructuring measures Adj. EBITA before Special Items 68 267 Restructuring and integr
Slide 16: Net Income Transition
Net Income Transition Siemens Energy In €m Q1 FY20 Q1 FY21 Gas and Power 51 191 PPA4 SGRE (165) 71 Q1 reduction driven by in GP and reflects lower base due to write-down of intangibles in prior year Reconciliation to Siemens Energy (3) (20) Adj. EBITA (117) 243 Financial result Impacted by interest
Slide 17: Cash Flow Statement
Cash Flow Statement Siemens Energy In €m Q1 FY20 Q1 FY21 Net income (195) 99 CAPEX Amortization, depreciation and impairments 323 343 Change in operating net working capital • Increase by €44m y-o-y driven by SGRE Contract assets 300 (206) Free Cash Flow pre tax Inventories (540) (64) • GP: Increase
Slide 18: Net Cash Position
Net Cash Position Net cash / (Net debt) as of December 31, 2021 (in €m) 4,421 4,540 119 (2,697) 1,710 (133) (1,026) 684 Cash and cash Receivables from Total liquidity Long- and Payables to Net cash / (Net Pension provisions Adjusted Net equivalents Siemens Group short term debt Siemens Group debt) (
Slide 19: Gas and Power at a glance Q1 FY21
Gas and Power at a glance Q1 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (5)% / 0%1 5.4 (3)% / +3%1 +295% 5.2 4.4 4.3 267 1.8 1.8 (4)% (2)% 68 2.6 2.5 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 1.5% 6.2% Services New Unit Q1 FY20 Q1 FY21 Order Backlog2 Book-to-Bill Ratio Free Cash Flow3
Slide 20: Gas and Power at a glance Q1 FY21
Gas and Power at a glance Q1 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (5)% / 0%1 (3)% / +3%1 +295% 5.4 5.4 5.2 4.6 4.8 267 4.4 4.4 4.3 4.3 4.1 199 68 43 (55) 1.5% 4.3% (55) (1.3)% 0.9% 6.2% Q1 FY20 Q2 Q3 Q4 Q1 FY21 Q1 FY20 Q2 Q3 Q4 Q1 FY21 Q1 FY20 Q2 Q3 Q4 Q1 FY21 • Sequent
Slide 21: FY21 Key Messages
FY21 Key Messages We confirm our guidance, which does not reflect further financial Outlook impact from Covid-19 during fiscal year 2021 Accelerating impact Continuing to execute We continue to support our customers whilst making sure our Covid-19 employees and partners stay safe Analyst Call | Q1 F
Slide 22: Financial outlook and framework
Financial outlook and framework Actuals Profit forecast 3-year guidance Mid-term target FY19 FY20 FY20 FY21 FY23 Revenue €18.7bn €18.1bn (5)%-(3)% 2%-11% Gas and Power % Growth y-o-y2 (1.4)% (3.1)% Adj. EBITA before Special Items €836m €254m 0%-2% 3.5%-5.5% 6%-8% % Margin before Special Items 4.5% 1
Slide 23: We are #TeamPurple #WeEnergizeSociety
We are #TeamPurple #WeEnergizeSociety Siemens Energy is a registered trademark licensed by Siemens AG. Restricted © Siemens Energy, 2021
Slide 24: Questions & Answers
Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q1 FY21 24 2021-02-02 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 25: Financial Calendar / Contact Investor Relations
Financial Calendar 2021 Feb 2 Feb 2-5 Feb 10 Mar 19 May 5 Q1 FY21 Roadshow Siemens Energy Hydrogen Day Q2 FY21 AGM Contact Investor Relations Michael Hagmann Tobias Hang Harald Albrecht Head of Investor Relations tobias.hang@siemens-energy.com albrecht.harald@siemens-energy.com michael.hagmann@sieme
Slide 26: Appendix
Appendix Analyst Call | Q1 FY21 26 2021-02-02 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 27: Nominal vs comparable growth rates
Nominal vs comparable growth rates Siemens Energy In €m Q1 FY20 Q1 FY21 % nominal % comparable1 Gas and Power 5,434 5,166 (4.9) 0.3 SGRE 4,628 2,281 (50.7) (46.5) Reconciliation to Siemens Energy (32) (15) Total Orders 10,029 7,432 (25.9) (21.1) Gas and Power 4,420 4,292 (2.9) 2.6 SGRE 2,001 2,295 1
Slide 28: Disaggregation of revenue
Disaggregation of revenue Siemens Energy In €m Q1 FY20 Q1 FY21 % change Types of activities in Gas and Power New units 2,599 2,544 (2.1) Service contracts 1,821 1,748 (4.0) Types of business in SGRE Wind turbines 1,634 1,900 16.3 Operation and maintenance 366 395 7.9 Types of business in Gas and Pow
Slide 29: Gas and Power: Development by businesses Q1 FY21
Version 18 Gas and Power: Development by businesses Q1 FY21 Industrial in % y-o-y Gas and Power Generation Transmission Grading system Applications >10% +++ Order growth - - - --- 5% - 10% 0% - 5% ++ + Revenue 0% - (5)% - growth - + -- -- (5)% - (10)% > (10)% -- --- Analyst Call | Q1 FY21 29 2021-02
Slide 30: Profit and Loss Statement (I)
Profit and Loss Statement (I) Siemens Energy In €m Q1 FY20 Q1 FY21 Revenue 6,373 6,541 Cost of sales (5,723) (5,538) Gross profit 650 1,002 Gross profit margin 10.2% 15.3% Research and development expenses (210) (236) R&D as percentage of revenue (3.3)% (3.6)% Selling and general administrative expe
Slide 31: Profit and Loss Statement (II)
Profit and Loss Statement (II) Siemens Energy In €m Q1 FY20 Q1 FY21 Gas and Power 4,420 4,292 SGRE 2,001 2,295 Reconciliation to Siemens Energy (48) (46) Total Revenue 6,373 6,541 Gas and Power 68 267 SGRE (138) 118 Reconciliation to Siemens Energy (3) (19) Adj. EBITA before Special Items (74) 366 A
Slide 32: Statement of Financial Position
Statement of Financial Position In €m Sep. 30, 2020 Dec. 31, 2020 Goodwill and other intangible assets 13,215 12,895 Property, plant and equipment and other non-current assets 7,269 7,331 Inventories 6,527 6,552 Trade and other receivables 4,963 5,112 Contract assets 4,545 4,700 Cash and cash equiva
Slide 33: Profit Bridge from SGRE to SE disclosure Q1 FY21
Profit Bridge from SGRE to SE disclosure Q1 FY21 Profit Bridge from SGRE1 to SE2 disclosure (in €m) Integration & Consolidation Adj. EBITA Restructuring EBIT (as Financial and accounting Adj. EBITA (before EBIT (underl.) Cost PPA effects reported) PPA effects3 Income differences (as reported) Specia
Slide 34: 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