Siemens Energy Ag · XETR:ENR
Siemens Energy — Investor Day (November 2023)
18 slides from Siemens Energy's investor day presentation, Nov 21, 2023
Slide 1: CMD 2023 CEO Section
CMD 2023 CEO Section Christian Bruch President and Chief Executive Officer Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023 | Christian Bruch | CEO Section
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: Our mission and key messages
Our mission Key messages Supporting our We have been changing the shape of the company to capitalize on the energy transition customers in transitioning to a more Operational improvements introduced, including the sustainable world, new group structure, have been playing out across Gas Services, Gri
Slide 4: Strong delivery on our CMD 2022 commitments overshadowed by issues at Siemens Gamesa
Where we are today Strong delivery on our CMD 2022 commitments overshadowed by issues at Siemens Gamesa 01 02 03 04 05 New operating Gas Grid Transformation Siemens model for GP Services Technologies of Industry Gamesa • Customer focus • Service share • HVDC ramp-up • SES industrialization • New ope
Slide 5: Strong development – well positioned to capitalize on structural trends
Where we are today Energy market Strong development – well positioned to capitalize on structural trends Structural trends Orders Market position3 (in €bn) Gas 11.8 12.9 #2 Large GT Services #2 Industrial GT Growing demand for electricity +1.4%1 globally in 2023 15.8 #2 Products Grid 10.4 Push for l
Slide 6: We deliver tomorrow's technology today
Where we are today Energy market We deliver tomorrow’s technology today Power generation with low or zero emissions F-gas free electricity transport CO2 reduction Gas Services Siemens Gamesa Grid Technologies Transformation of Industry Gas turbine operating with Floating offshore windfarm in Decarbo
Slide 7: Energy market opportunities and risks
Where we are today Energy market Opportunities and risks Capitalizing on opportunities Managing risks 1 Increasing demand • Emerging markets with strong electrification growth • Governmental investment programs 1 Macroeconomic factors • Persistent inflation 2 Adjusted policy frameworks • High intere
Slide 8: Three priorities to deliver shareholder returns
Strategic priorities Three priorities to deliver shareholder returns 01 Deliver 02 Fix 03 Maintain on profitable growth the wind business solid financial foundations • Executing on a record backlog • Progress on Onshore quality issues • Active portfolio management to eliminate with healthy margins a
Slide 9: Executing on a record backlog with healthy margins
Strategic priorities 01 Deliver on profitable growth Executing on a record backlog with healthy margins SE w/o SG backlog overview Ensuring profitable conversion (in €bn) Gas Services • Selectivity of projects and scope with Service margins >150bps attractive profitability and balanced risk • Invest
Slide 10: Project execution excellence driven across SE by Global Functions
Strategic priorities 01 Deliver on profitable growth Project execution excellence driven across SE by Global Functions CCGT Power Plants Creating benefits by one project 2.6 GW efficient organization in Global Functions capacity for Mexico Processes • Harmonized process structure • Large procurement
Slide 11: Expanding capacities and competencies with efficient use of capital resources
Strategic priorities 01 Deliver on profitable growth Expanding capacities and competencies with efficient use of capital resources Expanding competence Expanding capacities Expanding competencies and capacities Grid Technologies Grid Technologies Transformation of Industry Gas Services Digital offer
Slide 12: Progress in Onshore Quality and Deliver Offshore Growth
Strategic priorities 02 Fix the wind business Progress in Onshore Quality and Deliver Offshore Growth Onshore Offshore Systematic approach to tackle product quality Offshore manufacturing ramp-up plan defined for all plants • Technology: Development of short- and long-term • Dedicated cross-function
Slide 13: Plan to return to sustainable level of profitability
Strategic priorities 02 Fix the wind business Plan to return to sustainable level of profitability … Secure Onshore product quality … and to reach break-even in FY26 1 and focus on attractive markets Siemens Gamesa profit margin before SI Address ramp-up and cost-out (in €bn) 2 in Offshore Break-eve
Slide 14: Active portfolio management to eliminate distractions from strategic core
Strategic priorities 03 Maintain solid financial foundations Active portfolio management to eliminate distractions from strategic core • >10 non-core businesses divested Completed divestments Selected examples: of non-core activities Trench, Gas Engines, Voith Hydro stake, Heat transfer technologies
Slide 15: Strict capital discipline with stringent criteria
Strategic priorities 03 Maintain solid financial foundations Strict capital discipline with stringent criteria Research and Development Capital expenditure Mergers and Acquisitions HL gas turbine Blade factory extension Hull Pro Integris Return criteria • Addressable market – size and growth • Profi
Slide 16: ESG: On track to meet and exceed targets
ESG results ESG On track to meet and exceed targets Our performance in FY23 vs. our CMD targets Evolution of our ratings since CMD 2022 -30% GHG emissions per € spent by 2030 Low risk rating: 13.6 Suppliers FY23 performance: -17% vs. 2018 B-prime Own Climate neutral by 2030 Decarbo- Operations FY23
Slide 17: Our people are key to our success
ESG results Our people are key to our success Driving diversity • FY23 gender diversity: 28% women in top leadership positions (vs. target of 25% by FY25) • Succession planning improving diversity: • 33 nationalities in 25 FY22 • 45% share of female successors vs. 31% in FY22 Developing workforce •
Slide 18: Accelerating our journey to build a resilient energy technology company
Summary Accelerating our journey to build a resilient energy technology company and to deliver shareholder returns CEO priorities We will deliver profitable growth 01 Deliver for Grid Technologies, Gas Services and Transformation of Industry on profitable growth We will turnaround Siemens Gamesa and