Siemens Energy Ag · XETR:ENR
Siemens Energy — Investor Day (November 2023)
14 slides from Siemens Energy's investor day presentation, Nov 21, 2023
Slide 1: Grid Technologies
CMD 2023 Grid Technologies Tim Holt Member of the Executive Board Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023 | Tim Holt | Grid Technologies
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: We are the profitable growth engine for the global energy transition
Grid Technologies We are the profitable growth engine for the global energy transition We enable a reliable, sustainable and digital grid Being the backbone of the energy transition • HVDC and HVAC efficient transmission • We efficiently connect renewable power to the grid • Sustainable switchgear a
Slide 4: Grid Technologies beat revenue growth guidance and will increase mid-term profit margin target
Grid Technologies Grid Technologies beat revenue growth guidance and will increase mid-term profit margin target What we have achieved… Key financials FY23 (in €bn) +52%² Grid market with strong long-term growth rate of 10% Orders coming from projected CAGR of 5%1 10.4 15.8 7.3 +17%² Revenue We are
Slide 5: Market projection doubling to 10% CAGR driven by renewables additions and doubling electricity demand
Global market drivers Market projection doubling to 10% CAGR1 driven by renewables additions and doubling electricity demand Grid Generation 6x ~€600bn p.a. more installed capacity from grid grid investment by 2030 to reach national connected RES (2050 vs. 2022) climate goals (today ~€315bn p.a.) Co
Slide 6: Global policy packages rolled out – supporting double digit market growth
Grid Technologies’ market Global policy packages rolled out – supporting double digit market growth Global EMEA Americas APAC GT Revenue FY23 €7.2bn 54% 31% 15% Addressable 175 • Accelerated investments • Renewables integration, • HVDC and offshore Market +10% in HVDC, offshore grid ageing infrastru
Slide 7: Significant portfolio measures implemented to prepare Grid Technologies for profitable growth
Actively managing our portfolio Significant portfolio measures implemented to prepare Grid Technologies for profitable growth Exit Invest Partner Divestment of Substation automation Grid Management dilutive business acquisition software partnership Joint venture for DC switching station Green steel
Slide 8: Our portfolio is designed to master the energy transition
Grid Technologies’ leading portfolio Our portfolio is designed to master the energy transition 56% 37% of rev.1 of rev.1 Grid Products Grid Solutions Transformers Switchgear Converter towers Offshore Onshore Grid Stabilization Energy transition challenges • Connect renewable energy sources • Improve
Slide 9: Disruptive F-gas free switchgear launched – €7bn market ready for take off
Decarbonized high voltage switchgear Disruptive F-gas free switchgear launched – €7bn market ready for take off “Standard” with Innovate the “Standard” Finally, innovation Innovation harmful insulation gas Replace harmful gas becomes “Standard” … pays off… with clean air F-gas ban for high €7bn volt
Slide 10: HVDC to turn €38bn market into profitable growth
HVDC market will increase 6-fold1 Proven track record and long-term learning curve in HVDC to turn €38bn market² into profitable growth Example: Crete-Attica-Interconnection Established products and software 500,000 t CO2e accounting for ~50% in solution offering savings in first year of operations
Slide 11: Industrialization of offshore grid connection
Industrialization of offshore grid connection Our standardized solutions enable us to reliably connect >200 GW offshore wind projects by 2030 Industrialization Scale up capacity and reduce execution timeline through standardized solution and Transformers convoy approach Converter Towers AC Switchgea
Slide 12: Innovative grid stabilization software to strongly participate in rapidly growing market
4-fold growth in grid stabilization market1 Innovative grid stabilization software to strongly participate in rapidly growing market Example: Shannonbridge, Ireland Long-term experience >600 grid stabilization (FACTS) projects delivered in >60 countries Innovation Integrating established grid stabil
Slide 13: Our priorities
Our priorities Ambitious growth projection secured with profitable order backlog and proven operational approach Order Backlog Grid Services and Digitalization 01 Selective investments into existing assets and expanding manufacturing footprint in the US and India Grid Products 02 Scaling by industri
Slide 14: Ahead of schedule in financial performance – targets raised for FY26
Grid Technologies is the profitable growth engine for the global energy transition The growth engine started: Ahead of schedule in financial performance – targets raised for FY26 by FY26 Focusing through active portfolio management on attractive markets Low double digit Revenue growth² Scaling by st