Siemens Energy Ag · XETR:ENR
Siemens Energy — Q2 2021 Earnings Presentation
32 slides from Siemens Energy's earnings presentation, May 5, 2021
Slide 1: Solid operational performance and strong order intake
Solid operational performance and strong order intake Christian Bruch, President and CEO Siemens Energy Maria Ferraro, CFO Siemens Energy Analyst presentation Q2 FY21 Munich, May 5, 2021 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
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: CEO section
CEO section Christian Bruch, CEO Analyst Call | Q2 FY21 3 2021-05-05 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 4: Q2 FY21 Key Messages
Q2 FY21 Key Messages Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI +39% / +43%1 (4)% / 0%1 €288m Solid operational 10.5 performance and strong 7.6 6.8 6.5 Free Cash Flow pre tax order intake Q2 FY20 Q2 FY21 €433m Q2 FY20 Q2 FY21 First AGM February 10 Hydrogen Day March 19 Highlights / Milest
Slide 5: Covid-19 update
Covid-19 update Employees Health and Safety of employees priority #1 All fabrication sites operating; some with slightly reduced capacity Business continuity No major supply chain interruptions Deferrals of orders, projects and outages, limitations of site access Business impact Lower discretionary
Slide 6: Executing our strategy
Executing our strategy Restructuring outside of Germany advancing well Focus and deliver on Voluntary Leaver Program offered to German employees; fundamentals negotiations with employee representatives continuing Vattenfall – large scale heat pump at Potsdamer Platz for climate- Co-create innovation
Slide 7: Q2 FY21 awards & milestones
Version 18 Q2 FY21 awards & milestones Cyprus: 50% lower CO2 China: Support for emissions in power gen decarbonization plans • Supply of technology and • Supply of 22 distribution long-term service for Cyfield transformers for the first Mari 260 MW powerplant commercial 66kV offshore wind power proj
Slide 8: ESG Update – sustainability as integral part of the strategy
Version 18 ESG Update – sustainability as integral part of the strategy, positive evaluation of performance Climate protection seal from the Science Based Target Initiative-(SBTi) • Reduction targets confirmed on a scientific base in line with Paris Agreement • Siemens Energy aims to be climate neut
Slide 9: Financial section
Financial section Maria Ferraro, CFO Analyst Call | Q2 FY21 9 2021-05-05 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 10: Focused on Sustainable Shareholder Value Creation
Focused on Sustainable Shareholder Value Creation Strong business foundation with large 1 order backlog and resilient service business Siemens Energy 2 Clear path to margin improvement with ongoing cost programs Value creation 3 Asset excellence – Cash upside from rigorous working capital management
Slide 11: Siemens Energy Group at a glance Q2 FY21
Siemens Energy Group at a glance Q2 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +39% / +43%1 10.5 (4)% / 0%1 7.6 +44% 6.8 6.5 288 2.3 2.2 (5)% 200 4.5 4.3 (4)% Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 2.9% 4.4% Q2 FY20 Q2 FY21 Services New Unit Order Backlog2 Book-to-Bill Ratio Free Ca
Slide 12: Siemens Energy Group at a glance Q2 FY21 quarterly trend
Siemens Energy Group at a glance Q2 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +39% / +43% (4)% / 0%1 10.5 +44% 9.4 7.6 366 7.6 7.4 6.8 6.7 6.5 6.5 288 7.0 200 (213) 70 2.9% . (3.2)% 0.9% 5.6% 4.4% Q2 FY20 Q3 Q4 Q1 Q2 FY21 Q2 FY20 Q3 Q4 Q1 Q2 FY21 Q2 FY20 Q3 Q4 Q1 Q2 FY21 • G
Slide 13: Special Items
Special Items Reconciliation of Adj. EBITA before Special Items Gas and Power In €m Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 • Personal Restructuring costs (severance) Gas and Power Takes into account further progress on existing programs and new restructuring measures Adj. EBITA before Special Items 199 187
Slide 14: Net Income Transition
Net Income Transition Siemens Energy In €m Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 PPA4 Gas and Power 174 169 225 360 Q2 reduction driven reflects lower base due to SGRE (60) 42 (226) 113 write-down of intangibles in prior year Reconciliation to Siemens Energy (26) (14) (29) (34) Financial result Adj. EBITA
Slide 15: Cash Flow Statement
Cash Flow Statement Siemens Energy CAPEX In €m Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 Net income (142) 31 (337) 130 • Increase by €17m in Q2 driven by SGRE Amortization, depreciation and impairments 357 355 680 699 Free Cash Flow pre tax Change in operating net working capital • Sharp improvement y-o-y, wi
Slide 16: Net Cash Position
Net Cash Position Net cash / (Net debt) as of March 31, 2021 (in €m) 4,571 4,650 79 (2,938) 1,576 (136) (906) 670 Cash and cash Receivables from Total liquidity Long- and Payables to Net cash / (Net Pension provisions Adjusted Net equivalents Siemens Group short term debt Siemens Group debt) (unaudi
Slide 17: Gas and Power at a glance Q2 FY21
Gas and Power at a glance Q2 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (6)% / (2)%1 5.4 (10)% / (6)%1 5.0 (6)% 4.6 199 187 4.2 1.9 (8)% 1.7 2.7 (10)% 2.4 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 4.3% 4.5% Services New Unit Q2 FY20 Q2 FY21 Order Backlog2 Book-to-Bill Ratio Free Cash F
Slide 18: Gas and Power at a glance Q2 FY21 quarterly trend
Gas and Power at a glance Q2 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (6)% / (2)%1 (10)% / (6)%1 (6)% 5.4 5.2 5.0 4.8 267 4.4 4.6 4.3 4.3 4.1 4.2 199 187 (55) 43 4.3% (55) (1.3)% 0.9% 6.2% 4.5% Q2 FY20 Q3 Q4 Q1 Q2 FY21 Q2 FY20 Q3 Q4 Q1 Q2 FY21 Q2 FY20 Q3 Q4 Q1 Q2 FY21 • Str
Slide 19: FY21 Key Messages
FY21 Key Messages Revenue guidance narrowed to 3 - 8% (prev. 2% - 12%) Outlook Margin guidance of 3% - 5% confirmed This guidance continues to assume limited financial impact from COVID-19 during fiscal year 2021 Accelerating impact Continuing to execute We continue to support our customers whilst m
Slide 20: Financial outlook and framework – Narrowing of revenue guidance range
Financial outlook and framework – Narrowing of revenue guidance range Actuals Profit forecast 3-year guidance Mid-term target FY19 FY20 FY20 FY21 FY23 Revenue €18.7bn €18.1bn (5)%-(3)% 2%-6% Gas and Power % Growth y-o-y2 (1.4)% (3.1)% (prev. 2%-11%) Adj. EBITA before Special Items €836m €254m 0%-2%
Slide 21: We are #TeamPurple #WeEnergizeSociety
We are #TeamPurple #WeEnergizeSociety Siemens Energy is a registered trademark licensed by Siemens AG. Restricted © Siemens Energy, 2021
Slide 22: Questions & Answers
Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q2 FY21 22 2021-05-05 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 23: Financial Calendar / Contact Investor Relations
Financial Calendar 2021 May 5 June/July Aug 4 Nov 10 Q2 FY21 ESG conferences Q3 FY21 Q4 FY21 and roadshows Contact Investor Relations Michael Hagmann Tobias Hang Harald Albrecht Head of Investor Relations tobias.hang@siemens-energy.com albrecht.harald@siemens-energy.com michael.hagmann@siemens-energ
Slide 24: Appendix
Appendix Analyst Call | Q2 FY21 24 2021-05-05 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 25: Nominal vs comparable growth rates
Nominal vs comparable growth rates Siemens Energy In €m Q2 FY20 Q2 FY21 % nom. % comp.1 H1 FY20 H1 FY21 % nom. % comp.1 Gas and Power 5,374 5,030 (6.4) (1.8) 10,808 10,195 (5.7) (0.7) SGRE 2,203 5,500 149.7 153.4 6,830 7,781 13.9 17.9 Reconciliation to Siemens Energy (11) (10) (43) (25) Total Orders
Slide 26: Disaggregation of external revenue
Disaggregation of external revenue Siemens Energy In €m Q2 FY20 Q2 FY21 % change H1 FY20 H1 FY21 % change Types of activities in Gas and Power New units 2,677 2,404 (10.2) 5,227 4,904 (6.2) Service contracts 1,895 1,738 (8.3) 3,714 3,484 (6.2) Types of business in SGRE Wind turbines 1,808 1,902 5.2
Slide 27: Gas and Power: Development by businesses Q2 FY21
Version 18 Gas and Power: Development by businesses Q2 FY21 Industrial in % y-o-y Gas and Power Generation Transmission Grading system Applications >10% +++ Order growth -- -- --- ++ 5% - 10% 0% - 5% ++ + Revenue 0% - (5)% - growth -- -- --- -- (5)% - (10)% > (10)% -- --- Analyst Call | Q2 FY21 27 2
Slide 28: Profit and Loss Statement (I)
Profit and Loss Statement (I) Siemens Energy In €m Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 Revenue 6,780 6,484 13,152 13,024 Cost of sales (5,883) (5,471) (11,606) (11,009) Gross profit 897 1,013 1,547 2,015 Gross profit margin 13.2% 15.6% 11.8% 15.5% Research and development expenses (238) (289) (447) (525
Slide 29: Profit and Loss Statement (II)
Profit and Loss Statement (II) Siemens Energy In €m Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 Gas and Power 4,615 4,167 9,035 8,459 SGRE 2,204 2,336 4,204 4,631 Reconciliation to Siemens Energy (39) (19) (86) (66) Total Revenue 6,780 6,484 13,152 13,024 Gas and Power 199 187 267 454 SGRE 22 113 (116) 231 Reco
Slide 30: Statement of Financial Position
Statement of Financial Position Siemens Energy In €m Sep. 30, 2020 Mar. 31, 2021 Goodwill and other intangible assets 13,215 13,161 Property, plant and equipment and other non-current assets 7,268 7,472 Inventories 6,527 6,851 Trade and other receivables 4,963 4,879 Contract assets 4,545 4,763 Cash
Slide 31: Profit Bridge from SGRE to SE disclosure Q2 FY21
Profit Bridge from SGRE to SE disclosure Q2 FY21 Profit Bridge from SGRE1 to SE2 disclosure (in €m) Integration & Consolidation Adj. EBITA Restructuring EBIT (as Financial and accounting Adj. EBITA (before EBIT (underl.) Cost PPA effects reported) PPA effects3 Income differences (as reported) Specia
Slide 32: Framework for value creation
Version 18 Framework for value creation Performance Portfolio Covered in incentive framework Research and Portfolio Development optimization 6.5-8.5% ≥8% ~€1bn Resize Adj. EBITA margin before Adj. EBITA margin annual spending the portfolio Special Items Siemens Energy Siemens Energy mid-term target1