Siemens Energy Ag · XETR:ENR
Siemens Energy — German Corporate Conference 2022
23 slides from Siemens Energy's conference presentation, Sep 19, 2022
Slide 1: Leading the Energy Transformation
Leading the Energy Transformation Christian Bruch, CEO September 19, 2022 | German Corporate Conference 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: Acting in a Changing environment
Acting in a Changing environment
Slide 5: There are multiple scenarios how the electricity market will develop but all of them have common themes
There are multiple scenarios how the electricity market will develop 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 crite
Slide 6: 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 7: New group structure to increase customer focus, transparency and accountability
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 …and a new operating model aiming at Clear Structu
Slide 8: New reporting structure significantly increases transparency
New reporting structure significantly increases transparency Reporting structure New reporting Before After structure Siemens Energy Siemens Energy Effective October 1, 2022 Gas Services New reporting structure following board structure, splitting former Gas Grid Technologies and Power segment into
Slide 9: Gas Services: Monetize on installed base through service and decarbonization
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 Gas Turbines effici
Slide 10: Grid Technologies: Leverage market leadership to benefit from accelerating investment
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 Portfolio • Moderniz
Slide 11: Transformation of Industry: Decarbonize industrial sector through focus on hydrogen and EAD
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 • Increasing electrification
Slide 12: Siemens Gamesa: Secure turnaround
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 wind3 (GW, excl. China
Slide 13: Execute a meaningful and decisive next step on our strategic roadmap to lead the Energy Transition
Execute a meaningful and decisive next step on our strategic roadmap to lead the Energy Transition & Leading the Energy Transformation • Most valued Energy Accelerating Impact Technology company • Focus and deliver on • Electrifying countries the fundamentals and communities • Co-create innovations
Slide 14: Key terms of the voluntary cash tender offer with intention to delist SGRE
Key terms of the voluntary cash tender offer with intention to delist SGRE Tentative timeline • Voluntary cash tender offer covering 21 May 2022 Transaction structure all outstanding shares of SGRE with Public offer announcement intention to delist Mid-September1 Public offer launch 4 – 5 weeks2 Pur
Slide 15: Envisaged offer funding and rating commitment
Envisaged offer funding and rating commitment • Funding requirement driven by tender offer acceptance Funding requirement • Assuming a 100% offer acceptance (i.e. by all SGRE minority shareholders), transaction value amounts to approximately €4.0bn (at an offer price of €18.05) • Balance sheet stren
Slide 16: 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 17: New Business Area margin targets clearly support original Gas and Power margin target of ≥ 8%
New Business Area margin targets clearly support original Gas and Power margin target of ≥ 8% as reported Adjusted EBITA margin w/o SI Target Ranges FY25 as reported (incl. SI) Existing structural cost saving programs / portfolio optimization Operational excellence / NCC reduction Efficencies from n
Slide 18: 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 19: Appendix
Appendix Christian Bruch | German Corporate Conference 19 2022-09-19 © Siemens Energy, 2022
Slide 20: Key Messages
Key Messages Highlights / Lowlights Major initiatives • Continuous solid performance at Gas and Power (GP) • Company reorganization (new structure effective Oct 1) • Operating performance at SGRE unsatisfactory • Cash Tender Offer for outstanding SGRE minorities • Capital Markets Day in Berlin (May
Slide 21: SGRE – update (Q3)
SGRE – update (Q3) • Strong order intake leads to record order book of €34bn • Sequential recovery of Onshore commercial activity maintaining an upward trend in Quarterly performance Onshore wind turbine average selling prices • Profitability still unsatisfactory, which was impacted by ramp up of SG
Slide 22: Restructuring of business activities in Russia
Restructuring of business activities in Russia • Substantial impact on all existing business activities in Russia after July Implications of sanctions 10 (end of 5th EU sanctions package wind down period) • Current sanctions do not justify to continue in the current business setup in Russia • Concre
Slide 23: Impact assessment on SE operations in case of a gas shortage in Europe
Impact assessment on SE operations in case of a gas shortage in Europe Our Operations • Activities started to reduce gas consumption in own operations • Utilization of gas in operations mainly for heating and testing • Broad supplier network globally – risk mitigation actions in progress, if possibl