Siemens Energy Ag · XETR:ENR
Siemens Energy — Investor Day (November 2023)
22 slides from Siemens Energy's investor day presentation, Nov 21, 2023
Slide 1: Transformation of Industry
CMD 2023 Transformation of Industry Anne-Laure de Chammard Member of the Executive Board Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023 | Anne-Laure de Chammard | Transformation of Industry
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: Transformation of Industry
Transformation of Industry We decarbonize industrial processes … by 3 main levers … … addressed through our 4 businesses Energy Efficiency Industrial Steam Turbines and Generators (STG) increasing the efficiency of existing assets providing process steam and converting heat to electricity Compressio
Slide 4: Turnaround ahead of plan
Since CMD 2022 Turnaround ahead of plan Structural transformation since FY22 Continuous profit margin1 improvement 7 – 9% ~€140m +7.1pp 6 – 8% Footprint optimization Closed or right sized 11 production sites and workshops 5.1% 3 – 5% ~€130m 1.1% Portfolio streamlining Divested non-core businesses ~€
Slide 5: All TI businesses delivering ahead of expectations
Since CMD 2022 All TI businesses delivering ahead of expectations Focus on Focus on turnaround growth FY23 STG CP EAD SES +8.5pp +10.1pp +2.0pp +221pp Profit 10.2% margin 4.7% 3.8% 5.8% before SI1 1.7% (86)% (5.4)% (307)% FY21 FY23 FY21 FY23 FY21 FY23 FY21 FY23 Growth Revenue CAGR +5.6% +7.3% +5.3%
Slide 6: Strong foundation for further profit expansion
Profitability Strong foundation for further profit expansion Main profitability drivers Maximize service share >85k >50% installed units increase in service • Leverage huge fleet and digitalization to grow resilient profitability order backlog1 • Capture brownfield demand with highly profitable mode
Slide 7: Industry decarbonization drives 11% market growth
Market environment Industry decarbonization drives 11% market growth Market drivers TI market development Key levers in €bn CAGR FY22 – FY30 >30% Energy efficiency GHG emissions from industry 60 to reduce energy consumption +11% >3,600 39 37% Electrification companies with SBTi targets1 to convert i
Slide 8: >60% of TI business will be clean tech by FY26
Transition to capture future growth >60% of TI business will be clean tech by FY26 Transitioning from oil and gas to process industries … and from conventional towards decarbonization New unit orders in % New unit orders in % Oil and gas Process industries Conventional + Energy Efficiency Electrific
Slide 9: TI portfolio serves demand for electrification and hydrogen
Transition to capture future growth TI portfolio serves demand for electrification and hydrogen Hydrogen and Power-to-X Industry electrification – Decarbonized heat SES: Electrolyzer CP: H2 , O2 system, Power-to-X compression, solutions carbon capture / CP + EAD: Electrically driven CP + EAD: CO2 co
Slide 10: … with business opportunities already today
Project examples … with business opportunities already today Electrification Carbon Capture Hydrogen and eFuels Meram (ADNOC) Louisiana Clean Energy Complex (APCI) Flagship SERIES (Liquid Wind) World’s lowest-emission gas processing Blue hydrogen production with carbon Largest commercial production
Slide 11: Four businesses poised for profitable growth
FY26 targets Four businesses poised for profitable growth Focus on Focus on profitability / service growth FY26 Transformation STG CP EAD SES of Industry 7 – 9% Profit margin 9 – 11% 9 – 11% 8 – 10% Break-even 6 – 8%1 Growth High Mid Mid Low Low Revenue CAGR single digit FY23 – FY26 single digit sin
Slide 12: In a nutshell …
In a nutshell … Turnaround ahead of plan >700bps profit increase to 5.1% in FY23 (vs. negative 2.0% in FY21) Strong foundation for further profit expansion Service growth, selectivity, operational excellence and low capital intensity Transformation of Industry Industry decarbonization drives 11% mar
Slide 13: TI raises targets for FY26
Transformation of Industry TI raises targets for FY26 Four businesses poised for profitable growth Revenue Drivers High single digit Revenue growth1 • Build on momentum from industry decarbonization 11% • Scale up hydrogen and electrification offerings to capture megatrends Market 7 – 9% CAGR Profit
Slide 14: Backup
Backup © Siemens Energy, 2023 | Anne-Laure de Chammard | Transformation of Industry
Slide 15: STG – Industrial Steam Turbines and Generators (1/2)
Driving energy efficiency STG – Industrial Steam Turbines and Generators (1/2) Business activity and portfolio FY23 • Customized provision of steam for process industries €1.6bn €1.4bn Orders Revenue • Efficient transformation of heat into electricity • Steam turbines including CCPP1, generators, 10
Slide 16: STG – Industrial Steam Turbines and Generators (2/2)
Driving energy efficiency STG – Industrial Steam Turbines and Generators (2/2) Key Drivers Mid-term perspective FY26 • Serving and increasing the fleet via 4 – 5% #1 modernization, upgrades and footprints Market growth1 Market position will boost profitability • Operational excellence to support gro
Slide 17: CP – Compression (1/2)
Core technology to decarbonize industry CP – Compression (1/2) Business activity and portfolio FY23 • Compression solutions for all gases €2.1bn €1.8bn incl. H2 and CO2 Orders Revenue • Key enabler for all decarbonization processes 4.7% 25k incl. hydrogen, eFuels, carbon capture, heat Profit margin
Slide 18: CP – Compression (2/2)
Core technology to decarbonize industry CP – Compression (2/2) Key Drivers Mid-term perspective FY26 • Expanding decarbonization business 3 – 4% #2 Market growth1 Market position in hydrogen, heat, e-fuels and carbon capture • Growing high margin service business via electrification, modernizations
Slide 19: EAD – Electrification, Automation and Digitalization (1/2)
Converting industrial processes from fossil fuels to electricity EAD – Electrification, Automation and Digitalization (1/2) Business activity and portfolio FY23 • Powering industry with electricity €1.6bn €1.2bn with own products and solutions Orders Revenue • Focus on industrial decarbonization: 5.
Slide 20: EAD – Electrification, Automation and Digitalization (2/2)
Converting industrial processes from fossil fuels to electricity EAD – Electrification, Automation and Digitalization (2/2) Key Drivers Mid-term perspective FY26 • Capture electrification megatrend: 6 – 8% #2 50% of world primary energy from electricity Market growth1 Market position in 2050 vs. 22%
Slide 21: SES – Sustainable Energy Systems (1/2)
Capitalize on green hydrogen megatrend SES – Sustainable Energy Systems (1/2) FY23 Business activity and portfolio €0.3bn €82m • Produce green hydrogen to replace fossil fuels Orders Revenue using electrolyzer systems • Establish and improve Power-to-X integration -86% 22 Profit margin before SI Pre
Slide 22: Sustainable Energy Systems (2/2)
Capitalize on green hydrogen megatrend Sustainable Energy Systems (2/2) Key Drivers Mid-term perspective FY26 • Scale and deliver Execute electrolyzer projects and scale up Berlin x10 >10% Gigafactory capacity from 1 to 4+ GW by 2026 Market growth by 2030 Market share • Manage growth Build on indust