Siemens Energy Ag · XETR:ENR
Siemens Energy — Investor Day (May 2022)
25 slides from Siemens Energy's investor day presentation, May 24, 2022
Slide 1: Capital Market Day 2022 - CEO Section
Capital Market Day 2022 CEO Section Dr. Christian Bruch Chief Executive Officer and President Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2022
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: Key messages
Key messages Our vision Since the start of Siemens Energy in 2020 we have made substantial operational improvements & portfolio changes To become the most valued energy technology The electricity and energy market is under significant change and will receive substantial investment over the next deca
Slide 4: Since 2020 we have executed on Phase 1 of our strategy
Since 2020 we have executed on Phase 1 of our strategy Improved Healthy Operational Sustainable market position order backlog4 improvement portfolio • Market share gas turbines • €57bn in Gas and Power • Footprint optimization • Plan for significant shift of from 35% to 44%1 • €33bn in SGRE (e.g. Le
Slide 5: Acting in a Changing environment
Acting in a Changing environment
Slide 6: There are multiple scenarios how the electricity market will develop
There are multiple scenarios how the electricity market will develop… Global electricity generation scenarios (TWh) Massive growth in renewables installations 75,000 Net Zero 70,000 Additions until 2030 65,000 60,000 Sustainable Development Stated Policies +120% +240% 55,000 Announced Pledges 50,000
Slide 7: … but all of them have common themes
… but all of them have common themes Electricity Production Grid investment Energy efficiency production will grow capacity will grow will rise to will be a competitive faster than GDP • Capacity expansion will be unprecedented criteria across covered by renewables levels industries due to • Gas wil
Slide 8: Our purpose and mission
Our purpose and mission Supporting our customers through the transition to a more sustainable world, based on our innovative technologies and our ability to turn ideas into reality
Slide 9: We support our customers along the value chain
We support our customers along the value chain Low- or zero-emission Transport and storage Reducing CO2 footprint and energy power generation of electricity consumption in industrial processes Market #1 #3 #1 Leading market position Offshore Onshore Gas turbines >10MW 2 #1 positions Examples • >100G
Slide 10: Growth and security of supply drive investment in generation & transmission
Growth and security of supply drive investment in generation & transmission Generation investments (in €bn p.a.)1 Opportunities for Siemens Energy 1000 • More than €780bn investment spending p.a. this decade • Offshore and Onshore Wind 800 • 3,300-5,300GW additions 600 by 2030 – up to almost • Maint
Slide 11: Industry sectors require efficiency improvement, a shift in feedstock & abatement technologies
Industry sectors require efficiency improvement, a shift in feedstock & abatement technologies Industrial processes will have to change for Net Zero to become a reality Opportunities for Siemens Energy Global industrial production of bulk materials by production route 1 Chemicals Steel Cement • Elec
Slide 12: Connecting the dots: global integrated company
Connecting the dots SE drives benefits from being a global integrated company Power generation Bring to shore Storage Re-electrification Connecting offerings Offshore Wind HVDC Electrolysis/ H2 gas turbine Battery Connecting Europe USA Asia Pacific3 regions (56GW of HVDC)1 (19GW of HVDC)1 (43GW of H
Slide 13: Managing market challenges
Managing market challenges Initiatives to address those … … and what it means • Lasting Covid impact Covid-19 • Procurement and Supply Chain • Regular monitoring of 3,000 instruments key suppliers • Geopolitical tensions • Price escalation clauses / indexation in • Bundled re-negotiation of contract
Slide 14: Siemens Energy defined 5 levers to drive value
Siemens Energy defined 5 levers to drive value 01 02 03 04 05 New operating Grid Transformation model Gas Services Technologies of Industry SGRE Increase customer focus, Monetize on installed Leverage market Decarbonize industrial Secure turnaround transparency base through service leadership to ben
Slide 15: New group structure (effective October 1, 2022)
Strategic lever 1 New group structure (effective October 1, 2022) to increase customer focus, transparency and accountability Siemens Energy Reporting Segments SE Executive Board Gas Grid Transformation Global CEO CFO SGRE Services Technologies of Industry Functions Record orderbook1 Adj. EBITA befo
Slide 16: New operating model with less hierarchy, more accountability
Strategic lever 1 New operating model (effective October 1, 2022) with less hierarchy, more accountability and a focus on excellence Clear Structures Unified go to market Operational excellence Focused innovation • Hierarchy layers reduced from • Harmonized regional footprint • Integrated global fun
Slide 17: Gas Services: Monetize on installed base
Strategic lever 2 Gas Services Monetize on installed base through service and decarbonization Share of Siemens Energy What has changed total revenue1 in the new group structure? Business Drivers • Decarbonization of power generation and district heating GEN • Service, Mods and Upgrades to increase G
Slide 18: Grid Technologies: Leverage market leadership
Strategic lever 3 Grid Leverage market leadership to benefit Technologies from accelerating investment Share of Siemens Energy What has changed total revenue1 in the new group structure? Business Drivers • Growing electricity demand • Connection of increasing amount of renewable Complete energy T Po
Slide 19: Transformation of Industry: Decarbonize industrial sector
Strategic lever 4 Transformation Decarbonize industrial sector of Industry through focus on hydrogen and EAD Share of Siemens Energy What has changed total revenue1 in the new group structure? Business Drivers Complete • Growing demand for green hydrogen and NEB Portfolio derivative fuels • Increasi
Slide 20: Siemens Gamesa Renewable Energy: Secure turnaround
Strategic lever 5 Siemens Gamesa Secure turnaround Renewable Energy Share of Siemens Energy total revenue1 Wind market shows exceptional future growth Annual global onshore wind Annual global offshore Global installed capacity installations2 (GW, excl. China) installations2 (GW, excl. China) in wind
Slide 21: ESG is a business opportunity
ESG is a business opportunity E Environment S Social G Governance Decarbonization Gender diversity Safety Our Targets Climate neutral own 25% by 2025 Achieve Zero Harm operations by 2030 30% by 2030 Become the leader Aspiration of Net Zero value chain (share of women in top leadership positions) in
Slide 22: Our journey to Net Zero creates opportunity
Our journey to Net Zero creates opportunity Reduction measures 2021 – 2030 beyond 2030 1,5001 1,3691 2019 2021 Portfolio adjust- Energy Increasing Fuel shift Emission ments & emissions efficiency & renewables & & GHG free removal from growth digitalization electrification products technologies Curre
Slide 23: Our people: our base for success
Inclusion & ~150 Our people Diversity countries are represented our base by our employees Everyone has an equal chance for success Our values #BetterTogether €58m Caring | Agile | Respectful | program spent in continuing education Accountable in FY21 | €632 per employee Flexible working | Employee w
Slide 24: CEO priorities
CEO priorities Performance Portfolio Process People CMD | C. Bruch | CEO Section 24 2022-05-24 © Siemens Energy, 2022
Slide 25: Key messages
Key messages Our vision Since the start of Siemens Energy in 2020 we have made substantial operational improvements & portfolio changes To become the most valued energy technology The electricity and energy market is under significant change and will receive substantial investment over the next deca