Ge Vernova Inc. · NYSE:GEV
Ge Vernova — Investor Day (2024)
20 slides from Ge Vernova's investor day presentation, 2024
Slide 1: Caution concerning forward-looking statements
Caution concerning forward-looking statements: This presentation contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. These forward-looking statements might be identified by words, and var
Slide 2: Overview & Strategy
OVERVIEW & STRATEGY Scott Strazik GE Vernova CEO © 2024 GE Vernova and/or its affiliates. All rights reserved. 2
Slide 3: Purpose-Built to Electrify and Decarbonize
Purpose-Built to Electrify and Decarbonize Serving the vital energy Executing with Delivering disciplined growth to transition market with sustainability, innovation drive margin expansion, higher multi-decade growth & lean at our core free cash flow* & effective capital allocation © 2024 GE Vernova
Slide 4: The energy transition – the next supercycle
The energy transition – the next supercycle Supercycles of the past shaped today’s economy Energy transition Significant energy transition spend Internet/Software expected in coming Globalization decades-a)… Industrialization Accounts for +20% Value of trade as a of GDP growth in Electrification mat
Slide 5: Increased electrification and decarbonization offer major opportunities
Increased electrification and decarbonization offer major opportunities Global generation to grow ELECTRIFICATION DECARBONIZATION ~2x >800 TWh of electricity used for data centers-a), e.g. as (TWh/y) ~800 GW 59K of coal capacity outside China and India … large as at least Sweden or potentially Germa
Slide 6: Large and growing sector with multi-decade tailwinds
Large and growing sector with multi-decade tailwinds IEA Global power sector and end-use average annual capital investment $2.4T $3.4T $435B IEA announced IEA announced GE Vernova’s 2030 pledges pledges served segment -a) GROWING TO $1.4T $2.0T $2.4T $3.4T 3.12d $265B 2016-2022 2023-2030 2031-2040 I
Slide 7: Electrifying and decarbonizing the world
Electrifying and decarbonizing the world GE VERNOVA TECHNOLOGIES GENERATE TRANSFER ORCHESTRATE CONVERT STORE POWER WIND ELECTRIFICATION Gas, Steam, Hydro, Nuclear Onshore Wind, Offshore Wind, LM Wind Grid Solutions, Power Conversion, Solar & Power Storage Solutions, Electrification Software $110B se
Slide 8: Unique scope and scale needed to lead energy transition
Unique scope and scale needed to lead energy transition Power Strong, growing • Services ~$73B backlog-a) (81% services) • Productivity free cash flow* ~$17B revenue • Decarbonization technologies Wind Significant margin • Leading quality ~$27B backlog-a) (49% services) • Workhorse products expansio
Slide 9: Delivering innovative technologies to create a more sustainable electric power system
Delivering innovative technologies to create a more sustainable electric power system SUSTAINABILITY FRAMEWORK Catalyze access to more secure, Invent, deploy, and service sustainable, reliable and affordable technology to help decarbonize and electricity to help drive global electrify the world econ
Slide 10: Proven and trusted long-term customer relationships
Proven and trusted long-term customer relationships 40% Our 20 largest customers generate ~40% of 9/10 of our top-10 customers in both the US and electricity in their respective Europe transact with 6 or more geographies-a) of our GE Vernova businesses Serving the most impactful electricity provider
Slide 11: Building on over 140 years of innovation
Building on over 140 years of innovation COMMERCIALIZING Small Modular Carbon Capture and GridOS® BREAKTHROUGH Reactors (SMRs) Sequestration TECHNOLOGIES Hydrogen Enabled Haliade-X platform High Voltage Direct Gas Turbines Current (HVDC) Investing ~$1B in annual R&D to generate long-term value © 202
Slide 12: Experienced Leadership Team
EXPERIENCED Scott Strazik LEADERSHIP TEAM GE Vernova CEO CORPORATE FUNCTIONS BUSINESS SEGMENTS BUSINESS ENABLING FUNCTIONS POWER WIND Jessica Uhl Ken Parks Maví Zingoni Vic Abate Pablo Koziner Kristin Carvell President Chief Financial Officer CEO CEO Chief Commercial Chief Communications Officer Off
Slide 13: GE Vernova lean operating system
GE Vernova lean operating system APPLYING SAFETY, QUALITY, DELIVERY & COST EVERY DAY SAFETY Drive culture of addressing potential severe events 45% reduction in injury and illness rate across GE Vernova since 2018 QUALITY Eliminating defects & waste starting in the factory floor 9 TO 5 reduction of
Slide 14: Improved discipline and execution across GE Vernova
Improved discipline and execution across GE Vernova Before turnaround 2023 Negative GAS FCF* Significant Embedding lean deeper into POWER (2018 trough) the business (SQDC) FCF* Negative GRID FCF* Positive FCF* SOLUTIONS (2019 trough) Driving better selectivity, Negative ONSHORE FCF* price and risk m
Slide 15: Our $116B backlog enables profitable growth
Our $116B backlog-a) enables profitable growth Year-end 2023 GE Vernova backlog Growing backlog at better margins ~$75B • Equipment backlog grew >$8B y/y with average margins-b) in backlog increasing in 2023 • Margins-b) up >10 points in Onshore & ~5 points ~$40B in Electrification Power • Electrifi
Slide 16: GE Vernova financial outlook
GE Vernova financial outlook 2024 guidance 2025 guidance Outlook by 2028 $34 – 35B MSD MSD Revenue Organic revenue growth* Organic revenue growth*-a) High-end MSD Low-end HSD 10% Adj. EBITDA margin* Adj. EBITDA margin* Adj. EBITDA margin* $0.7 – 1.1B $1.2 – 1.8B 90-110% FCF* FCF* FCF* conversion-b)
Slide 17: Energy transition is a growing, exciting market
Energy transition is a growing, exciting market 1 Power generates significant, growing FCF* 2 Wind expected to experience multiple years of margin expansion 3 Electrification is a high growth segment with improving profitability 4 Lean operating system with sustainability & innovation at our core 5
Slide 18: Closing Remarks
CLOSING REMARKS Scott Strazik GE Vernova CEO © 2024 GE Vernova and/or its affiliates. All rights reserved. 18
Slide 19: At the center of this industry's transformation
At the center of this industry’s transformation STRONG MACRO TRENDS ROBUST ORGANIC INVESTMENT • Inflation Reduction Act (U.S.) • Artificial intelligence build out ~$1B ~250 ~36K R&D Advanced Patents & • Green Deal • Industrial spend p.a. Research Team Patent Industrial Plan (E.U.) electrification Em
Slide 20: Energy transition is a growing, exciting market
Energy transition is a growing, exciting market 1 Power generates significant, growing FCF* 2 Wind expected to experience multiple years of margin expansion 3 Electrification is a high growth segment with improving profitability 4 Lean Operating System with sustainability & innovation at our core 5