Siemens Energy Ag · XETR:ENR
Siemens Energy — Q3 FY2022 Earnings Presentation
36 slides from Siemens Energy's earnings presentation, Aug 8, 2022
Slide 1: Gas and Power resilient while SGRE again weighing down Group results
Gas and Power resilient while SGRE again weighing down Group results – Major initiatives taken to shape Siemens Energy for the energy transition Christian Bruch, President and CEO Siemens Energy Maria Ferraro, CFO Siemens Energy Analyst presentation Q3 FY22 Berlin, August 8, 2022 Siemens Energy is a
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 | Q3 FY22 3 2022-08-08 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 4: Key Messages
Key Messages Highlights / Lowlights Major initiatives • Continuous solid performance at Gas and Power (GP) • Company reorganization (new structure effective Oct 1) • Operating performance at SGRE unsatisfactory • Cash Tender Offer for outstanding SGRE minorities • Capital Markets Day in Berlin (May
Slide 5: Our vision
CMD Key messages Our vision Since the start of Siemens Energy in 2020 we have made substantial operational improvements & portfolio changes To become the most valued energy technology The electricity and energy market is under significant change and will receive substantial investment over the next
Slide 6: New group structure (effective October 1, 2022)
New group structure (effective October 1, 2022) to increase customer focus, transparency and accountability… Siemens Energy Reporting Segments SE Executive Board Gas Grid Transformation Global CEO CFO SGRE Services Technologies of Industry Functions …and a new operating model aiming at Clear Structu
Slide 7: SGRE – update
SGRE – update • Strong order intake leads to record order book of €34bn • Sequential recovery of Onshore commercial activity maintaining an upward trend in Quarterly performance Onshore wind turbine average selling prices • Profitability still unsatisfactory, which was impacted by ramp up of SG 5.X,
Slide 8: Restructuring of business activities in Russia
Restructuring of business activities in Russia • Substantial impact on all existing business activities in Russia after July Implications of sanctions 10 (end of 5th EU sanctions package wind down period) • Current sanctions do not justify to continue in the current business setup in Russia • Concre
Slide 9: Impact assessment on SE operations in case of a gas shortage in Europe
Impact assessment on SE operations in case of a gas shortage in Europe • Activities started to reduce gas consumption in own operations Our Operations • Utilization of gas in operations mainly for heating and testing • Broad supplier network globally – risk mitigation actions in progress, if possibl
Slide 10: Q3 FY22 awards and milestones
Version 18 Q3 FY22 awards and milestones Power generation with low Transport and storage Reducing the CO2 footprint & or zero emissions of energy energy consumption in industrial processes 2.6GW with high efficient gas Largest offshore grid connection JV with Air Liquide for the turbine technology i
Slide 11: CFO section
CFO section Maria Ferraro, CFO Analyst Call | Q3 FY22 11 2022-08-08 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 12: Key terms of the voluntary cash tender offer with intention to delist SGRE
Key terms of the voluntary cash tender offer with intention to delist SGRE Tentative timeline • Voluntary cash tender offer covering 21 May 2022 Transaction structure all outstanding shares of SGRE with Public offer announcement intention to delist Mid-September1 Public offer launch 4 – 5 weeks2 Pur
Slide 13: Envisaged offer funding and rating commitment
Envisaged offer funding and rating commitment • Funding requirement driven by tender offer acceptance Funding requirement • Assuming a 100% offer acceptance (i.e. by all SGRE minority shareholders), transaction value amounts to approximately €4.0bn (at an offer price of €18.05) • Balance sheet stren
Slide 14: Siemens Energy Group: Strong order intake results in record order backlog
Siemens Energy Group: Strong order intake results in record order backlog Q3 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +65% / +60%1 9.8 0% / (5)%1 n/a 7.3 7.3 5.9 54 2.4 2.5 5% (131) 4.8 4.7 (2)% 0.7% (1.8%) Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Services New Unit O
Slide 15: Net Cash Position decreased because of €1.15bn cash collateral transfer to CNMV
Net Cash Position decreased because of €1.15bn cash collateral transfer to CNMV Net cash/(Net debt) as of June 30, 2022 (in €m) 4,442 4,549 107 SGRE: €3.5bn SE excl. SGRE: €0.5bn Reduction driven by €1.15bn cash (4,051) collateral transfer to CNMV (76) 422 (623) (72) (273) Cash and cash Receivables
Slide 16: Gas and Power: Resilient performance in Q3 FY22
Gas and Power1: Resilient performance in Q3 FY22 Q3 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +43% / +37%² 6.4 +6% / +1%² (6)% 4.9 225 212 4.6 4.5 2.0 6% 1.9 2.7 2.8 7% Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 4.9% 4.4% Services New Unit Q3 FY21 Q3 FY22 Order Backlog3 Book-to-Bill Ra
Slide 17: Financial Outlook
Financial Outlook Actuals Outlook FY20 FY21 FY22 FY23 Revenue €18.1bn €18.4bn 1%-5%2 Gas and Power (low end of the range) % Change y-o-y1 (3.1)% 1.5% Adj. EBITA before Special Items €257m €834m 4.5%-6.5% 6%-8% (low end of the range) % Margin before Special Items 1.4% 4.5% Restructuring costs €135m €
Slide 18: Key Priorities
1 Support our customers to navigate through the current market challenges and geopolitical tensions 2 Manage market challenges Key Priorities 3 Deliver on FY22 targets, execute cost out programs and build the base for successful start into FY23 4 Implementation of the new operating model Successful
Slide 19: We are #TeamPurple #WeEnergizeSociety
We are #TeamPurple #WeEnergizeSociety Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 20: Questions & Answers
Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q3 FY22 20 2022-08-08 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 21: Financial Calendar and Contact Investor Relations
Financial Calendar 2022 2023 Aug 8 Sep 13 Sep 15 Nov 16 Feb 7 Q3 FY22 Buyside Sustainability Annual Laguna Q4 FY22 Q1 FY23 Summit 2022 Conference & AGM Contact Investor Relations Michael Hagmann Tobias Hang Harald Albrecht Head of Investor Relations tobias.hang@siemens-energy.com albrecht.harald@sie
Slide 22: Appendix
Appendix Analyst Call | Q3 FY22 22 2022-08-08 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 23: Special Items
Special Items Reconciliation of Adj. EBITA before Special Items Q1-Q3 Q1-Q3 In €m Q3 FY21 Q3 FY22 Gas and Power FY21 FY22 Gas and Power1 • Personal Restructuring costs (severance) Adj. EBITA before Special Items 225 212 681 720 Takes into account progress on existing programs and new restructuring m
Slide 24: Net Income Transition
Net Income Transition Siemens Energy Q1-Q3 Q1-Q3 In €m Q3 FY21 Q3 FY22 FY21 FY22 Financial result Gas and Power 78 (21) 441 472 Impacted by interest expenses and currency effects SGRE (185) (392) (72) (1,011) Tax Reconciliation to Siemens Energy (17) (16) (53) (24) €1m income tax expenses which incl
Slide 25: Cash Flow Statement
Cash Flow Statement Siemens Energy Q1-Q3 Q1-Q3 In €m Q3 FY21 Q3 FY22 FY21 FY22 Net income (307) (533) (177) (1,025) CAPEX Amortization, depreciation and impairments 378 516 1,077 1,250 • Increase driven by SGRE Change in operating net working capital Contract assets (282) (272) (450) 116 Free Cash F
Slide 26: Nominal versus comparable growth rates
Nominal versus comparable growth rates Siemens Energy Q1-Q3 Q1-Q3 In €m Q3 FY21 Q3 FY22 % nom. % comp.1 % nom. % comp.1 FY21 FY22 Gas and Power2 4,455 6,362 42.8 36.9 14,655 18,995 29.6 25.3 SGRE 1,520 3,523 131.8 127.9 9,301 7,194 (22.7) (23.9) Reconciliation to Siemens Energy (25) (45) (55) (110)
Slide 27: Disaggregation of revenue
Disaggregation of revenue Siemens Energy In €m Q3 FY21 Q3 FY22 % change Q1-Q3 FY21 Q1-Q3 FY22 % change Types of activities in Gas and Power New units 2,655 2,828 6.5 7,563 7,728 2.2 Service contracts 1,902 2,014 5.9 5,386 5,646 4.8 Types of business in SGRE Wind turbines 2,179 1,904 (12.6) 5,980 4,9
Slide 28: Gas and Power: Development by businesses Q3 FY22
Version 18 Gas and Power: Development by businesses Q3 FY22 in % nom. y-o-y Q1 FY22 Q2 FY22 Q3 FY22 Gas and Power +++ +++ +++ Grading system Order Generation +++ +++ +++ growth >10% +++ Industrial Applications +++ +++ +++ 5% - 10% ++ 0% - 5% + Transmission ++ +++ +++ 0% - (5)% - Gas and Power - ++ +
Slide 29: Profit and Loss Statement (I)
Profit and Loss Statement (I) Siemens Energy In €m Q3 FY21 Q3 FY22 Q1-Q3 FY21 Q1-Q3 FY22 Revenue 7,262 7,279 20,286 19,817 Cost of sales (6,563) (6,795) (17,572) (17,887) Gross profit 699 484 2,714 1,929 Gross profit margin 9.6% 6.7% 13.4% 9.7% Research and development expenses (285) (270) (809) (76
Slide 30: Profit and Loss Statement (II)
Profit and Loss Statement (II) Siemens Energy In €m Q3 FY21 Q3 FY22 Q1-Q3 FY21 Q1-Q3 FY22 Gas and Power1 4,579 4,868 13,042 13,432 SGRE 2,704 2,436 7,335 6,442 Reconciliation to Siemens Energy (21) (25) (91) (57) Total Revenue 7,262 7,279 20,286 19,817 Gas and Power1 225 212 681 720 SGRE (154) (330)
Slide 31: Statement of Financial Position
Statement of Financial Position Siemens Energy In €m Sep. 30, 2021 Jun. 30, 2022 Goodwill and other intangible assets 13,099 13,653 Property, plant and equipment and other non-current assets 7,645 8,049 Inventories 6,146 7,985 Trade and other receivables 5,110 5,452 Contract assets 4,913 4,993 Cash
Slide 32: Profit Bridge from SGRE to SE disclosure Q3 FY22
Profit Bridge from SGRE to SE disclosure Q3 FY22 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 33: Siemens Energy Group: SGRE weighs on performance Q3 FY22
Siemens Energy Group: SGRE weighs on performance Q3 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +65% / +60%1 9.8 n/a 9.1 0% / (5)%1 8.3 7.9 54 8.2 7.3 7.3 (46) (63) (21) (131) 5.9 6.0 6.6 0.7% +2.9% (0.6)% (1.1)% (0.3)% (1.8)% Q3 FY21 Q4 Q1 Q2 Q3 FY22 Q3 FY21 Q4 Q1 Q2 Q3 FY22
Slide 34: Gas and Power: Strong orders and profitability Q3 FY22
Gas and Power1: Strong orders and profitability Q3 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +43% / +37%² +6% / +1%² 6.7 (6)% 6.2 6.4 5.9 5.4 266 4.6 4.9 242 4.4 4.1 4.4 225 212 153 4.9% 2.9% 5.8% 6.0% 4.4% Q3 FY21 Q4 Q1 Q2 Q3 FY22 Q3 FY21 Q4 Q1 Q2 Q3 FY22 Q3 FY21 Q4 Q1 Q2 Q
Slide 35: Transfer of centrally held Real Estate services to Gas and Power segment
Transfer of centrally held Real Estate services to Gas and Power segment Summary prior year reclassification Gas and Power In €m Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Orders Quarter (as reported in FY21) 5,166 5,030 4,453 6,231 20,880 Quarter restated1 5,166 5,034 4,455 6,233 20,888 Change due to res
Slide 36: Transfer of centrally held Real Estate services to Gas and Power segment
Transfer of centrally held Real Estate services to Gas and Power segment Summary prior year reclassification Gas and Power In €m Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Adj. EBITA before SI Quarter (as reported in FY21) 267 187 231 165 849 Quarter restated1 268 188 225 153 834 Change due to restatement