Siemens Energy Ag · XETR:ENR
Siemens Energy — Q3 2023 Earnings Presentation
23 slides from Siemens Energy's earnings presentation, Aug 7, 2023
Slide 1: Severe ramp up challenges in the wind business overshadow excellent performance in conventional energy business
Severe ramp up challenges in the wind business overshadow excellent performance in conventional energy business Press call Q3, fiscal year 2023 Berlin, August 7, 2023 Christian Bruch, President and CEO Siemens Energy AG Maria Ferraro, Chief Financial Officer Siemens Energy AG Jochen Eickholt, CEO Si
Slide 2: Information and forward-looking statements
Information and forward-looking statements This document contains statements related to our future business and financial Siemens Energy neither intends, nor assumes any obligation, to update or revise performance, and future events or developments involving Siemens Energy that these forward-looking
Slide 3: Christian Bruch
Christian Bruch President and CEO, Siemens Energy AG August 7, 2023 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023 | Q3 Press Call 2023 3
Slide 4: Siemens Energy in the third quarter FY 2023
Siemens Energy in the third quarter FY 2023 Excellent performance of Gas Services, Grid Technologies and Transformation of Industry; targets for these Business Areas being met Setback at Siemens Gamesa: quality problems identified and quantified; first mitigation measures in place Continued positive
Slide 5: Jochen Eickholt
Jochen Eickholt CEO, Siemens Gamesa August 7, 2023 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023 | Q3 Press Call 2023 5
Slide 6: Siemens Gamesa (Onshore)
Siemens Gamesa (Onshore) Technical issues at 4.X and 5.X platforms Potential damage to rotor blades & main bearings after some period of operation accounts for largest share of provisions Defective components not installed in entire fleet; only limited proportion of platforms 4.X and 5.X affected; f
Slide 7: Siemens Gamesa (Offshore)
Siemens Gamesa (Offshore) Challenges in expanding capacity Taichung Ambitious targets for Offshore wind; Siemens Gamesa is ramping up or retrofitting sites Ramp-up taking longer than planned; market for raw materials has not yet recovered to pre-Covid Aalborg level; cost calculation too optimistic H
Slide 8: Siemens Gamesa: Financial impact and mitigation measures
Siemens Gamesa Financial impact and mitigation measures Charges of €1.6 billion due to quality issues related to Onshore platforms; lower margin from processing order backlog; external task force established Additional impact of increased product cost (€0.4 billion) and others (€0.2 billion), includ
Slide 9: Christian Bruch
Christian Bruch President and CEO, Siemens Energy AG August 7, 2023 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023 | Q3 Press Call 2023 9
Slide 10: Successful turnaround, continuous improvement
Successful turnaround, continuous improvement Siemens Energy without Siemens Gamesa Orders Revenue in €bn in €bn 26.7 +39% 27.3 19.3 19.2 +7% 18.0 16.1 FY20 FY22 9M FY23 FY20 FY22 9M FY23 Profit before Special Items Free Cash Flow pre-tax in €m in €bn 1,395 2.3 +171% 842 +263% 1.6 0.9 232 FY20 FY22
Slide 11: Maria Ferraro
Maria Ferraro Chief Financial Officer, Siemens Energy AG August 7, 2023 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023 | Q3 Press Call 2023 11
Slide 12: Strong growth in orders and revenue; profitability impacted by charges at Siemens Gamesa
Siemens Energy Group in Q3 FY231 Strong growth in orders and revenue; profitability impacted by charges at Siemens Gamesa Orders Revenue Profit before Special Items in €bn in €bn in €m +54% / +51%2 Service New Units (3.0)% (27.3)% 14.9 +8% / +3%2 n/a 9.8 7.3 7.5 2.54 2.74 (222) (2,048) 4.74 4.84 Q3
Slide 13: Continuous strong liquidity position
Continuous strong liquidity position Net cash/(Net debt) as of June 30, 2023 (in €m) 4,374 S&P Rating update as per July 10, 2023: BBB- / outlook stable 1,487 3,222 (336) 537 46 (919) Cash and cash Short Term Debt Long Term Debt Net cash/ Pension provisions Credit guarantees Adjusted Net equivalents
Slide 14: Gas Services: Profit before Special Items almost doubled year-over-year
Gas Services in Q3 FY231 Profit before Special Items almost doubled year-over-year Orders Revenue Profit before Special Items in €bn in €bn in €m 6.4% 10.9% +21% / +14%2 (17%) / (17%)2 +93% 2.6 2.7 2.4 296 2.2 153 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Significant decrease driven by lower S
Slide 15: Grid Technologies: Strong improvement across all key financial indicators
Grid Technologies in Q3 FY231 Strong improvement across all key financial indicators Orders Revenue Profit before Special Items in €bn +64% / +61%2 in €bn in €m 4.3 1.6% 8.7% 2.7 +512% +19% / +15%2 159 1.8 1.6 26 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Increase driven by margin-accretive Con
Slide 16: Transformation of Industry: Continuous margin progression
Transformation of Industry in Q3 FY231 Continuous margin progression Orders Revenue Profit before Special Items in €bn in €bn in €m +14% / +7%2 1.6% 6.5% 1.2 1.3 +10% / +6%2 n/a 1.0 1.1 70 17 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Strong prior-year quarter; service orders Double-digit incre
Slide 17: Siemens Gamesa: Strong order growth; profitability burdened by €2.2bn charges
Siemens Gamesa in Q3 FY231 Strong order growth; profitability burdened by €2.2bn charges Orders Revenue Profit before Special Items in €bn +113% / +109%2 in €bn in €m 7.4 (15.7)% (124.1)% (568)% 3.5 (12%) / (16%)2 (382) 2.4 2.1 (2,550) Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Orders more than
Slide 18: Siemens Gamesa: Q3 Charge of €2.2bn
Siemens Gamesa: Q3 Charge of €2.2bn mainly related to Quality Issues and increased Product Cost Q3 Siemens Gamesa charges (in €bn) ▪ Quality SG 5.X / SG 4.X (€1.6bn): Product quality issues relating to Onshore platforms 4.X and 5.X (mainly increase in onerous loss provision) ▪ Product cost (€0.4bn):
Slide 19: Financial outlook adjusted
Financial outlook adjusted Fiscal Year 2023 Outlook FY231 Revenue Growth2 Profit3 Margin before SI Siemens Energy 9 – 11% (prev. 10 – 12%) neg. 10 – 8% (prev. around the low end of 1 – 3% ) We expect a net loss of around €4.5bn. (prev. exceeding prior fiscal year’s level by up to a low-triple-digit
Slide 20: Christian Bruch
Christian Bruch CEO, Siemens Energy AG August 7, 2023 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023 | Q3 Press Call 2023 20
Slide 21: Our priorities for solving the current challenges
Our priorities for solving the current challenges Turnaround at Siemens Gamesa through 1 Working through quality issues in Onshore and further reducing costs Managing the ramp-up in Offshore sector as well as cost structure Further strengthening of processes Greater focus on smaller number of region
Slide 22: Questions & Answers
Questions & Answers Christian Bruch, Maria Ferraro and Jochen Eickholt August 7, 2023 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023 | Q3 Press Call 2023 22
Slide 23: Financial calendar 2023/2024 and Contact Press
Financial calendar 2023/2024 November 15 | 4th quarter November 21 February 7 | 1st quarter February 22 Annual Press Capital Market Annual Shareholder Conference Day Meeting Contact Press Tim Proll-Gerwe Oliver Sachgau Head of Media Relations Spokesperson Finance Mobile: +49 152 2283 5652 Mobile: +4