Siemens Energy AG · XETR:ENR
Siemens Energy — Investor Presentation (May 2022)
62 slides from Siemens Energy's investor presentation, May 2022
Slide 1: Company presentation
Company presentation Siemens Energy | May 2022 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2022
Slide 2: Information and forward-looking statements
Information and forward-looking statements This document contains statements related to our future business and financial Should one or more of these risks or uncertainties materialize, should performance, and future events or developments involving Siemens Energy that acts of force majeure, such as
Slide 3: Siemens Energy at a glance, setup, strategy, priorities
01 Siemens Energy 02 An integrated energy 03 Our path into a 04 What at a glance technology company successful future defines us Our company Our setup Our strategy Our priorities Company Presentation 3 May 2022 © Siemens Energy, 2022
Slide 4: Siemens Energy at a glance
01 Siemens Energy at a glance Our company Company Presentation 4 May 2022 © Siemens Energy, 2022
Slide 5: Four trends in the energy world
Four trends in the energy world Demand growth Decarbonization Decentralization Digitalization
Slide 6: Four trends in the energy world
Four trends in the energy world Demand growth Decarbonization Decentralization Digitalization Powering The answer Mastering growing Quality, speed the world to climate change complexity and cost savings Up to 50% more Climate change leads to An enormous shift toward Digitalization is changing energy
Slide 7: We want to become the most valued energy technology company
We want to become the most valued energy technology company. We have everything it takes to do so. Company Presentation 7 May 2022 © Siemens Energy, 2022
Slide 8: We are a global leader in the energy business
We are a ~ 1/6 global leader of global electricity generation is based on our technology. in the energy business. > 50% of our portfolio is based on technology that is relevant in a decarbonized energy world. We are present in > 90 countries. 91,000 employees work as a team to energize society.1 1 N
Slide 9: Our financial performance Fiscal year 2021
Our financial performance Fiscal year 2021 Orders Revenue Order backlog1 €33.0 bn €28.5 bn €84 bn Basic earnings per share €(0.63) Adjusted EBITA before Special Items €661 m Adjusted EBITA margin before Special Items 2.3% Our Annual Report 2021 1 As of September 30, 2021 Company Presentation 9 May 2
Slide 10: Our financial performance Second quarter FY 2022
Our financial performance Second quarter FY 2022 Orders Revenue Order backlog1 €7.9 bn €6.6 bn €89 bn Basic earnings per share €(0.22) Adjusted EBITA before Special Items €(21) m Adjusted EBITA margin before Special Items (0.3)% Earnings Release Q2 FY 2022 1 As of March 31, 2022 Company Presentation
Slide 11: We are building an integrated energy technology company
We are building an integrated energy technology company Low- or zero-emission Transport and storage Reducing CO2 footprint and energy power generation of energy consumption in industrial processes Company Presentation 11 May 2022 © Siemens Energy, 2022
Slide 12: We want to become the sustainability leader in our industry
We want to become the sustainability leader in our industry. We have set ourselves ambitious targets for our environmental and social performance as well as corporate governance (ESG). Our Sustainability Report 2021 Company Presentation 12 May 2022 © Siemens Energy, 2022
Slide 13: Our ESG targets and performance
Our ESG targets and performance Environment Social Governance Own operations – Targets Societal engagement Integrity and compliance Climate neutral €4.7 m Company-wide zero- by FY 2030 donations for social projects in FY 2021 tolerance approach 100% green electricity Continuing education to ensure s
Slide 14: Our purpose: We energize society
Our purpose: We energize society Company Presentation 14 May 2022 © Siemens Energy, 2022
Slide 15: An integrated energy technology company: Our setup
02 An integrated energy technology company Our setup Company Presentation 15 May 2022 © Siemens Energy, 2022
Slide 16: Our history: A young company
Our history A young company ... Siemens Energy was first listed on the Frankfurt Stock Exchange on September 28, 2020 – and is now an independent company. Company Presentation 16 May 2022 © Siemens Energy, 2022
Slide 17: Our history: with a strong heritage
Our history … with a strong heritage In 1866, engineer and company founder Werner Siemens discovered the dynamo-electric principle. With this, he laid the foundation for modern electrical engineering, first enabling electricity to become part of our everyday lives. Company Presentation 17 May 2022 ©
Slide 18: Company structure
Company structure 67% stake Reportable segments Gas and Power Siemens Gamesa Renewable Energy (GP) (SGRE) Divisions Business units Generation Transmission Industrial New Energy Onshore Offshore Service Applications Business1 1 As part of “Other Operations” Company Presentation 18 May 2022 © Siemens
Slide 19: Executive Board and Management Team of Siemens Energy AG
Company structure Executive Board and Management Team of Siemens Energy AG The Executive Board Christian Maria Karim Tim Bruch Ferraro Amin Holt President and Chief Financial Officer Member of the Member of the Chief Executive Officer Chief Inclusion & Executive Board Executive Board Chief Sustainab
Slide 20: Our Divisions: Generation
O ur Di v i si ons Leading market position for industrial gas turbines (IGT) and industrial steam turbines (IST). Generation 23% market share for central power generation. Strong in central and distributed power generation Gas turbines ranging up to 593 MW capacity and up to 75% hydrogen co-firing c
Slide 21: Generation in action
Generation in action Chungcheongbuk-do Province, South Korea 571 MW combined cycle power plant to reduce emissions • Highly efficient HL-class power plant technology will be used in the 571 MW Eumseong Unit 1 power plant. • The combined cycle power plant will be built in place of a previously planne
Slide 22: Our Divisions: Transmission
O ur Di v i si ons Market and technology leader in a mission-critical element Transmission of the global energy system. We are a leader in the transmission Broad portfolio of products, systems, solutions and services geared around the key business. market trends of digitalization, decarbonization, g
Slide 23: Transmission in action
Transmission in action New York, U.S. First offshore HVDC connection in U.S. to reduce transmission losses • We will connect New York State’s first utility-scale offshore wind farm to the grid. • First offshore HVDC grid connection project in the U.S., deploying a technology that will reduce transmi
Slide 24: Our Divisions: Industrial Applications
O ur Di v i si ons The innovative solution partner for the Oil & Gas, Fiber, Marine and Process Industrial Industries, across the entire energy value chain. Applications Worldwide #1 or #2 in the fields of rotating equipment, electrification, automation, digitalization (READ). Supporting industrial
Slide 25: Industrial Applications in action
Industrial Applications in action Schwarzheide, Germany Modernization for lower emis- sions and OPEX during ongoing operations of chemical park • Brownfield Exchange (BEX): Modernization of the industrial combined cycle power plant at the chemical park of BASF Schwarzheide GmbH, Germany. • SGT-800 g
Slide 26: Our Divisions: New Energy Business
New Energy Broad portfolio along the value chain, including electrolysis systems, Power-to-X solutions, energy system design and digital services. Business Hydrogen growth market: Global investment volume expected to exceed $300 bn by 2030.1 We are shaping the green hydrogen economy. Proven industri
Slide 27: New Energy Business in action
New Energy Business in action Haru Oni, Chile Producing green fuel from wind and water • The first commercial facility to produce climate-neutral fuels is currently under construction. • In the future, electrolyzers from Siemens Energy will produce green hydrogen using wind from the windswept Strait
Slide 28: Our segment: Siemens Gamesa Renewable Energy
O ur segm ent Global1 market leader in offshore wind, and globally leading positions1 in Siemens Gamesa onshore and service. Renewable Energy 40 years of experience in wind energy. We are a leading company in the field of renewable energy. Active in over 90 countries. Wind turbines for a wide range
Slide 29: Siemens Gamesa Renewable Energy in action
Siemens Gamesa Renewable Energy in action SG 14-236 DD Leading offshore wind turbine • A powerful offshore wind turbine with a rotor diameter of 236 meters. • Up to 15 MW capacity with Power Boost function. • Increases annual energy revenue by 25% compared to SG 11-200 DD offshore wind turbine. • Th
Slide 30: Our focus on service
Our focus on service Success factor Service business with record order backlog Fiscal year 2021: Gas and Power Service revenue Revenue share €7.5 bn 41% SGRE Service revenue Revenue share €1.9 bn 19% Company Presentation 30 May 2022 © Siemens Energy, 2022
Slide 31: Service in action
Service in action SIEAERO The digital service for powerline inspection • Digitalization of power line inspection: SIEAERO software analyzes data with artificial intelligence and machine learning. • Proprietary multi-sensor system with several ultra-high-definition color cameras, plus LIDAR, infrared
Slide 32: Our path into a successful future: Our strategy
03 Our path into a successful future Our strategy Company Presentation 32 May 2022 © Siemens Energy, 2022
Slide 33: Energy of Tomorrow
Our strategy Energy of Tomorrow Leading the Energy Transformation • Most valued energy Accelerating Impact technology company • Improve our business base • Electrifying countries and industries • Co-create innovations with customers and partners • Act as a data-driven company • Activities to drive t
Slide 34: Energy of Tomorrow: step by step toward higher profitability
Our strategy Energy of Tomorrow Step by step toward higher profitability Adjusted EBITA margin before Special Items FY 2021 2% to < 3% Target FY 2022 2% to 4% Target FY 2023 Under reassessment (prev. 6.5% to 8.5%) Mid-term target ≥ 8%1 1 Not adjusted for Special Items Company Presentation 34 May 202
Slide 35: The path to decarbonization
The path to decarbonization Coal-to-gas Shift to climate- Climate-neutral shift neutral fuels power generation ~70% 100% 330 mt CO 2 CO2 reduction by combined cycle Hydrogen fuel capability planned Annual avoidance through installed power plants compared to coal. for our gas turbines by 2030. wind t
Slide 36: Our focus: 5 fields of action
Decarbonized Energy Storage Heat and Industrial Our focus Processes 5 fields of action Power-to-X Resilient Grids Condition-based and Reliability Service Interventions Company Presentation 36 May 2022 © Siemens Energy, 2022
Slide 37: What defines us: Our priorities
04 What defines us Our priorities Company Presentation 37 May 2022 © Siemens Energy, 2022
Slide 38: Our employees are our greatest strength
Our employees are our greatest strength. Company Presentation 38 May 2022 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2022
Slide 39: Our team
Our team Working in over 90 countries1. ~ 150 Europe, CIS, Africa, Middle East: 67% Americas: 21% countries are represented Asia, Australia: 12% by our employees. 91,000 colleagues 19.3% ~ 40,000 share of women employees of GP are share- in the company2. holders of Siemens Energy. To our job portal
Slide 40: Our vocational training and education programs
Our vocational training and education programs €58 m 2,100 5,400 was invested in continuing education Trainees and students worked at More than 5,400 e-learning modules in in fiscal year 2021, equivalent to Siemens Energy in Germany alone as of different languages are available on our €632 per emplo
Slide 41: Our culture
Our culture Our values and behavior are key Focus on Decisively Be open and Build strong the customer move forward inclusive partnerships We listen to our customers We move fast with simplicity, We listen respectfully to learn We care for others and deliver and adapt our solutions focus and accounta
Slide 42: Our gender targets
Our gender targets 25% 30% women by 2025 women by 2030 in top leadership positions at Gas and Power FY 2021: 21% in the workforce and in senior management at Siemens Gamesa Renewable Energy FY 2021: 13% in management positions Company Presentation 42 May 2022 © Siemens Energy, 2022
Slide 43: Innovation is our everyday life
Innovation is our everyday life. Company Presentation 43 May 2022 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2022
Slide 44: Our innovative strength
Our innovative strength R&D spendings Patents Employees in R&D €1.2 bn 18,300 4,900 (In FY 2021) (Status: September 30, 2021) (Average number in FY 2021) Company Presentation 44 May 2022 © Siemens Energy, 2022
Slide 45: Siemens Energy Ventures – our start-up activities
Siemens Energy Ventures – our start-up activities Adopting a “give first” approach, we work with start-ups, founders, venture capitalists, accelerators and others to shape the Energy of Tomorrow. Venture building Venture clienting Venture capital Start-up partnership We identify new markets and We b
Slide 46: Innovation in action: GeoPura
Innovation in action GEOPURATM Providing off-grid power using green Hydrogen • Siemens Energy Ventures partnered with GeoPura to offer off-grid, temporary and back-up energy-as-a- service using green hydrogen, to displace diesel generators. • Using renewable power to create hydrogen for use as a fue
Slide 47: Innovation in action: Qwark3
Innovation in action QWARK³ Waste heat used to heat an entire city district • Qwark³ district cogeneration: A pilot project from Siemens Energy and Vattenfall in Berlin. • Previously unused waste heat produced by cooling 12,000 offices, 1,000 apartments, and cultural facilities around Potsdamer Plat
Slide 48: Innovation in action: Synchronous condensers
Innovation in action Synchronous condensers A partnership ensures stable grids. • Installation in Britain’s Killingholme and Grain power plants in cooperation with Uniper. • Indispensable for feeding large shares of wind and solar power into the grid. • Synchronous condensers stabilize transmission
Slide 49: Our lab for creating the future
Our lab for creating the future Orlando Innovation Center Shaping the future • A 1,700-square-meter creative workshop in Orlando, Florida, U.S. • Complete product development for customers as well as Siemens Energy – from design to simulation and from production of prototypes to tests. Equipment: In
Slide 50: Digitalization in action
Digitalization in action Siemens Energy … … uses digital solutions to become faster and more efficient. ... combines digital know-how with vast experience in the energy sector – and makes it available to customers. … works together with customers and partners in ecosystems to develop digital solutio
Slide 51: Sustainability is at the core of our strategy
Sustainability is at the core of our strategy. Company Presentation 51 May 2022 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2022
Slide 52: Our contribution to the UN Sustainable Development Goals
Our contribution to the United Nations Sustainable Development Goals We focus on five goals for sustainable development to ensure we have the biggest impact. We are committed to prac- We support our customers in We stimulate the economic With our technologies, we We help our customers reduce ticing
Slide 53: Our ESG performance
Our ESG performance (Environmental, Social, Governance) Independent institutions confirm that we take sustainability seriously. In its ESG Risk Rating, ISS ESG has given Siemens MSCI ESG Ratings has given CDP assessed Siemens Sustainalytics ranks Energy a B-Prime rating – Siemens Energy a BBB rating
Slide 54: We take responsibility for society
We take responsibility for society. Company Presentation 54 May 2022 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2022
Slide 55: Our safety culture
Our safety culture Everyone in our company is expected to demonstrate our Zero Harm principles and behaviors, which are the basis of our Zero Harm culture. Our managers lead by example and ensure the integration of Zero Harm in the way we work at all levels of our business. Our goal: Achieve Zero Ha
Slide 56: Our compliance commitment
Our compliance commitment Only clean business is Siemens Energy business. Zero tolerance for violations of applicable laws and internal regulations. This applies to: Anti- Anti- Data Human Corruption trust Privacy Rights Anti-Money Collective Export Laundering Action Control Company Presentation 56
Slide 57: Our societal engagement
Our societal engagement Social projects: • We are committed to serving society. Our employees • In Senegal, a self-organized initiative of GP employees exemplify this mission every day. raises funds to connect more than 3,000 people to a Actions • We advance the energy transition globally, provide a
Slide 58: Our engagement for infrastructure
Our engagement for infrastructure Roadmap Iraq Energy for a new society • 2018: Memorandum of Understanding signed with the Ministry of Electricity for the Iraq Roadmap that defines the path to a reliable and affordable energy supply. • 2019: Implementation begins with the Iraqi government. • 11 GW
Slide 59: We build upon a strong heritage
We build upon a strong heritage. Company Presentation 59 May 2022 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2022
Slide 60: Important points in our history
Important points in our history 1897 1914 – 1918 1931 1964 Siemens builds During World War I, Siemens, The West Large Power Plant Siemens is the first company the first electric power like numerous industrial is built on a turnkey basis – in Europe to present an SF6 plant in South Africa. companies,
Slide 61: Important points in our history
Important points in our history 1997 2008 2017 2019 Siemens acquires the fossil- Siemens presents the world’s Siemens Gamesa Renewable Commissioning of the world's fueled power plant business first HVDC system to operate Energy was founded. largest PEM hydrogen pilot of the U.S. company at a transmi
Slide 62: Thank you!
Thank you! Stay in contact with us: Siemens Energy on social media: Siemens Energy AG Otto-Hahn-Ring 6 81739 Munich contact@siemens-energy.com For questions about our company presentation: CompanyPresentation@siemens-energy.com More information can be found on our website: siemens-energy.com Siemens