Siemens Energy Ag · XETR:ENR
Siemens Energy — Investor Day (September 2020)
22 slides from Siemens Energy's investor day presentation, Sep 1, 2020
Slide 1: Capital Market Day 2020 – Generation Section
Capital Market Day 2020 Generation Section Jochen Eickholt, Member of the Executive Board of Siemens Energy Siemens Energy is a registered trademark licensed by Siemens AG. © Siemens Energy, 2020
Slide 2: Notes and forward-looking statements (I)
Notes and forward-looking statements (I) This presentation and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy or subscribe for any securities of Siemens AG or Siemens Energy AG. This prese
Slide 3: Notes and forward-looking statements (II)
Notes and forward-looking statements (II) This presentation contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management of Siemens AG and Siemens Energy AG. Forward-looking statements involve known and unknown risk
Slide 4: Our Management Team
Our Management Team What we stand for Jochen Eickholt Member of the Executive Board Better performance through Operational Excellence CMD | J. Eickholt | Generation 4 2020-09-01 © Siemens Energy, 2020
Slide 5: We are uniquely positioned across central and distributed generation
We are uniquely positioned across central and distributed generation #2 globally #1 globally Business segments Central generation >100 MW1 Distributed generation <100 MW1 Service – of our large generation fleet (>100 MW) Customer groups2 ~30% ~20% ~20% ~30% Utilities Municipalities IPPs EPCs Industr
Slide 6: Snapshot: SGT5-9000HL and SGT-800
Snapshot Our SGT5-9000HL and SGT-800 SGT5-9000HL heavy-duty gas turbine SGT-800 industrial gas turbine 5.3 m 3.1 m 13.0 m 10.5 m Power output of up to Powering 3.3 m CO2 savings Power output of up to Capability to burn H2 equivalent to >400 593 MW people 62 MW turbines sold of up to 50% 1 m cars1 1
Slide 7: Siemens Energy Generation by numbers
Siemens Energy Generation by numbers Siemens Energy total revenue (FY19) Key figures (FY19) €28.8 bn ~28% share of Siemens Energy total €33 bn €8.6 bn revenue Order backlog Orders Generation total revenue (FY19)1 Central Power Generation Service 34% Central New Unit €8.2 bn ~27 k Total revenue Emplo
Slide 8: Monetizing our powerful market position and service business
Siemens Energy Generation Monetizing our powerful market position and service business A market leader with strong global presence, Positioning high customer intimacy and highly competitive portfolio Resilient service business with strong backlog, Service attractive profitability and a growing fleet
Slide 9: We are leading across our offer spectrum
We are leading across our offer spectrum Central Generation Distributed Generation Service #2 #1 25% in large gas turbines (LGT)1 in industrial gas turbines (IGT)1 share of central generation fleet (>100 MW) 4 #2 #1 ~16-18 years largest fleet >100 MW2 in industrial steam turbines (IST)3 average dura
Slide 10: With our broad offering we effectively address local needs
With our broad offering we effectively address local needs Europe Middle East1 Americas China APAC Generation share of fleet2 ~20% ~30% ~30% ~15% ~25% Local needs Decarbonization Power to Coal to gas and Coal to gas Nuclear society gas to power to gas Generation Germany Marl Egypt US Lincoln UGTC Ko
Slide 11: The generation market is transforming
The generation market is transforming Growth in distributed, decline in central Our addressable market (in € bn, CAGR) Global LGT demand: ~70-80 units p.a. vs. ~200 in FY14 – growth in powerful jumbo frames (>300 MW) 28 27 Growth in both Distributed industrial gas and Growth in IGT (highly efficient
Slide 12: Gas will remain a key technology and decarbonization enabler
Gas will remain a key technology and decarbonization enabler Gas to Power Our tailored offerings Backbone of a reliable energy system • New gas power plants – Highly efficient and reliable, CCPP and CHP applications Gas-based power generation • Coal to gas – Increase efficiency up to 25 pp1, +17% re
Slide 13: We have a leading technology platform
Efficiency, performance, emissions We have a leading technology platform Large gas Industrial gas Industrial steam F-Class H/J-Class2 SGT-800 SST-700/900 Ambition Improve performance Establish our competitive Expand market Maintain leadership and defend #1 position next generation gas turbine lead f
Slide 14: We have unique capabilities to realize the world's most crucial projects
We have unique capabilities to realize the world’s most crucial projects Egypt France Brazil Germany Megaproject CCPP Gas to Power CHP Support national goals Ensure security of supply Provide financing models Support district heating of of sustainable economic and growing consumer in project develop
Slide 15: A large and attractive service business
A large and attractive service business Share of global fleet (>100 MW)1 SE fleet by region (>100 MW)1 ~16-18 years average duration Siemens Energy China of service relationship 3.5 k 15% 25% Americas 31% ~4% p.a. growth of service 14 k APAC 19% 3.5 k order backlog (FY17 to FY19) 75% 15% >90% of ser
Slide 16: Leveraging our powerful service business
Leveraging our powerful service business Grow installed fleet Optimize LTPs Generate new business Gas turbines installed/under installation % of projects sold with LTP or O&M • Brownfield engine exchange • Coal to gas repowering ~800 • Tailor made service offerings ~400 ~100 7 ~75% ~95% 100% ~40% •
Slide 17: Extending our lead in distributed generation
Extending our lead in distributed generation Industrial power plant at Marl Key success factors Gaining market share Chemical Park, Germany Industrial gas turbines Focused go-to- • Turnkey construction of market approach #1 globally two 90 MW power plant units Market share gain of • Up to 1 m tons o
Slide 18: Capturing growth by decarbonizing energy systems
Capturing growth by decarbonizing energy systems Fuel switch and Efficiency increase hybridization Deep decarbonization Customer Emissions regulations, Emission reduction, flexibility, grid Up to 100% H2 for carbon-free energy drivers cost reductions, reliability stability, storage integration produ
Slide 19: Unlocking value with our pioneering digital offerings
Unlocking value with our pioneering digital offerings Building on a portfolio addressing Combining digital with our key customer needs strengths to re-think value Intelligent gas Fleet management suite From remote to auto- Digital twin and VR turbine controller nomous powerplant • Gas turbine effici
Slide 20: Decline in LGT market has hit performance – Rightsizing underway
Decline in LGT market has hit performance Rightsizing underway Siemens Energy Generation ~60% LGT market decline Order backlog 32 32 33 32 (FY14-18) led to under-absorption (€ bn) and price pressure Book-to-Bill 0.8x 1.0x 1.1x 1.0x 1.1x Restructuring programs in place Total revenue 10.9 (€ bn) 8.5 8
Slide 21: Full focus on value generation
Full focus on value generation No excuses Profitability Growth Footprint Project excellence Portfolio Cost optimization • Extend #1 position • Eliminate over- • Be selective • Review options • Focus R&D on in IGT and IST capacities and (de-risking) to exit coal core revenue carriers • Grow service c
Slide 22: Conclusion: We are ...
Conclusion 1 The clear leader in distributed generation #1 in IGT and IST with growing market shares We are ... 2 Highly competitive in central generation 25% market share and successful launch of HL-class 3 Monetizing our strong position in gas Gas to remain a key technology 4 A service powerhouse