Siemens Energy Ag · XETR:ENR
Siemens Energy — Q3 2023 Earnings Presentation
30 slides from Siemens Energy's earnings presentation, Aug 7, 2023
Slide 1: Serious ramp-up challenges in the wind business overshadow excellent conventional energy performance
Serious ramp-up challenges in the wind business overshadow excellent performance in conventional energy business Christian Bruch, President and CEO Siemens Energy Jochen Eickholt, CEO Siemens Gamesa Maria Ferraro, CFO Siemens Energy Analyst presentation Q3 FY23 Berlin, August 7, 2023 Siemens Energy
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 FY23 3 2023-08-07 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2023
Slide 4: Key Messages
Key Messages Highlights / Lowlights • Excellent performance of former Gas and Power businesses • Setback at Siemens Gamesa due to product quality problems, Q3 FY23 Financial Performance1 increased product costs, and offshore ramp-up challenges; remediation actions initiated • Orders: +54.2% comp.2 a
Slide 5: Siemens Energy without Siemens Gamesa: Successful turnaround
Siemens Energy without Siemens Gamesa: Successful turnaround Continuous improvement across all KPIs, delivering on its targets Orders Revenue • The outlook and business in €bn in €bn momentum remain strong 26.7 27.3 • Excellent performance of the 20.8 former GP business (representing 19.3 18.9 18.0
Slide 6: Q3 FY23 Awards and Milestones
Version 18 Q3 FY23 Awards and Milestones Power generation with low or zero emissions Transport and storage of energy Reducing the CO2 footprint Gas Services Siemens Gamesa Grid Technologies Transformation of Industry New OCGT project to help facilitate Green electricity for more than one Grid stabil
Slide 7: Siemens Gamesa onshore business: Background on current challenges
Siemens Gamesa onshore business Background on current challenges Main Bearing Technical issues with 4.X and 5.X platforms Wind turbine fleet1 Lower availability levels triggered root-cause analysis (~59k onshore wind turbines) • Some 4.X and 5.X wind turbines showed abnormal vibrations during the re
Slide 8: Siemens Gamesa onshore business: Mitigation measures and financial impact
Siemens Gamesa onshore business Mitigation measures and financial impact Dedicated taskforce established €1.6bn charge in Q3 as well as lower profit contribution from • Composed of senior experts from Siemens Gamesa, Siemens Energy and the future execution of Siemens Gamesa’s order backlog AlixPartn
Slide 9: Siemens Gamesa offshore business: Background of current challenges
Siemens Gamesa offshore business Background of current challenges Challenging ramp-up Ramp-up progress and targets in different offshore locations Location Current challenge Blades Aalborg • Introduction of SG 11-200 Nacelles since 2002 • Simultaneous production of prototypes for SG 14-222 and SG 14
Slide 10: Siemens Gamesa offshore business: Mitigation measures and financial impact
Siemens Gamesa offshore business Mitigation measures and financial impact Remediation actions Ramp-up challenges Direct material costs Impacting Pricing and • New pricing and terms and conditions introduced in factors terms and commercial contracts and preferred supplier negotiations conditions sinc
Slide 11: Clear priority on stability, profitability
Siemens Gamesa: Measures have been defined and are under implementation Slower growth and longer path to target profitability Task force in place Clear priority on stability, Sound offshore quality with high availability levels profitability External validation and support by renowned companies and
Slide 12: CFO section
CFO section Maria Ferraro, CFO Analyst Call | Q3 FY23 12 2023-08-07 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2023
Slide 13: Siemens Energy Group: Strong growth in orders and revenue but profitability impacted by charges
Siemens Energy Group: Strong growth in orders and revenue but profitability impacted by charges at Siemens Gamesa Q3 FY231 Orders Revenue Profit before SI in €bn in €bn in €m Service New Units +54% / +51%2 +8% / +3%2 14.9 7.3 7.5 (3.0)% (27.3)% 2.5 2.7 +8% 9.8 n/a (222) (2,048) 4.7 4.8 +1% Q3 FY22 Q
Slide 14: Increasing order backlog as a source of strength and resilience
Increasing order backlog as a source of strength and resilience Book-to-Bill Q3 FY23 SE order backlog development (€bn) +39% • High order backlog is a source 0.80 109 of strength and resilience GS 1.19 97 • Increase across all businesses 84 • Stronger growth in New Units 78 56 supporting rejuvenatio
Slide 15: Continuous strong liquidity position
Continuous strong liquidity position Net cash/(Net debt) as of June 30, 2023 (in €m) 4,374 S&P Rating update as of July 10, 2023: BBB- / outlook stable 1,487 3,222 (336) 537 46 (919) Cash and cash Short Term Debt Long Term Debt Net cash/ Pension provisions Credit guarantees Adjusted Net equivalents
Slide 16: Gas Services: Profit before SI almost doubled year-over-year
Gas Services: Profit before SI almost doubled year-over-year Q3 FY231 Orders Revenue Profit before SI in €bn in €bn in €m (17%) / (17%)2 6.4% 4.2% 12.4% 10.5% 10.9% +21% / +14%2 4.5 +93% 3.8 2.8 2.8 2.7 2.4 2.6 2.6 2.6 318 299 296 2.2 153 117 Q3 FY22 Q4 Q1 FY23 Q2 Q3 Q3 FY22 Q4 Q1 FY23 Q2 Q3 Q3 FY22
Slide 17: Grid Technologies: Strong improvement across all KPIs
Grid Technologies: Strong improvement across all KPIs Q3 FY231 Orders Revenue Profit before SI in €bn in €bn in €m +64% / +61%2 1.6% 3.9% 6.9% 6.6% 8.7% +19% / +15%2 6.3 2.0 +510% 1.7 1.8 4.3 1.6 1.6 159 3.8 2.7 2.9 110 115 77 26 Q3 FY22 Q4 Q1 FY23 Q2 Q3 Q3 FY22 Q4 Q1 FY23 Q2 Q3 Q3 FY22 Q4 Q1 FY23 Q
Slide 18: Transformation of Industry: Continuous margin progression
Transformation of Industry: Continuous margin progression Q3 FY231 Orders Revenue Profit before SI in €bn in €bn in €m +14% / +7%2 1.6% 3.8% 5.7% 6.3% 6.5% +10% / +6%2 1.6 1.4 1.3 +319% 1.2 1.2 1.3 1.2 1.0 1.0 1.1 73 70 57 47 17 Q3 FY22 Q4 Q1 FY23 Q2 Q3 Q3 FY22 Q4 Q1 FY23 Q2 Q3 Q3 FY22 Q4 Q1 FY23 Q2
Slide 19: Siemens Gamesa: Strong order growth, profitability burdened by €2.2bn charge
Siemens Gamesa: Strong order growth, profitability burdened by €2.2bn charge Q3 FY231 Orders Revenue Profit before SI in €bn in €bn in €m +113% / +109%2 (15.7)% 11.1% (37.8)% (15.4)% (124.1)% (12%) / (16%)2 7.4 3.4 (568)% 4.4 2.4 2.4 374 3.5 3.6 2.0 2.1 1.6 (382) (374) (759) Q3 FY22 Q4 Q1 FY23 Q2 Q3
Slide 20: Siemens Gamesa: Q3 Charge of €2.2bn mainly related to Quality Issues and increased Product Cost
Siemens Gamesa: Q3 Charge of €2.2bn mainly related to Quality Issues and increased Product Cost Q3 Siemens Gamesa charges (in €bn) ▪ Quality SG 5.X / SG 4.X (€1.6bn): Product quality issues relating to onshore platforms 4.X and 5.X (mainly increase in onerous loss provision) ▪ Product cost (€0.4bn):
Slide 21: Financial outlook adjusted Fiscal Year 2023
Financial outlook adjusted Fiscal Year 2023 Outlook FY231 Revenue Growth2 Profit3 Margin before SI Siemens Energy 9 – 11% (prev. 10 – 12%) neg. 10 – 8% (prev. around the low end of 1 – 3% ) We expect a net loss of around €4.5bn (prev. exceeding prior fiscal year’s level by up to a low triple-digit m
Slide 22: Key Priorities
Turnaround Siemens Gamesa by 1 a) fixing onshore quality and reducing costs b) managing the ramp up in offshore and cost structure c) strengthening processes Key Priorities d) focusing on reduced number of regions and product variants Continue to leverage new operating model for Siemens 2 Energy to
Slide 23: We energize society
Oktober 2022 We energize society Analyst Call | Q3 FY23 23 2023-08-07 Unrestricted © Siemens Energy, 2023
Slide 24: Questions & Answers
Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q3 FY23 24 2023-08-07 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2023
Slide 25: Financial Calendar and Investor Relations Contact
Financial Calendar 2023 2024 Aug 7 Aug / Sep Nov 15 Nov 21-22 Feb 7 Q3 FY23 Conferences and Q4 FY23 Capital Market Day Q1 FY24 roadshows Contact Investor Relations Michael Hagmann Tobias Hang Harald Albrecht tobias.hang@siemens-energy.com Head of Investor Relations albrecht.harald@siemens-energy.com
Slide 26: Appendix
Appendix Analyst Call | Q3 FY23 26 2023-08-07 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2023
Slide 27: Additional financial disclosure for Siemens Gamesa
Additional financial disclosure for Siemens Gamesa1 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 WTG Profit Margin before SI (20.1)% 7.2% (28.7)% (22.6)% (131.8)% Revenue (€m) 1,096 1,875 751 1,042 651 Volume (MWe) 1,529 1,794 1,080 1,487 1,300 Onshore Order intake (€m) 1,068 1,743 909 710 573 Order inta
Slide 28: Net Income Transition
Net Income Transition Siemens Energy In €m Q3 FY22 Q3 FY23 Q1-Q3 FY22 Q1-Q3 FY23 Gas Service 42 291 417 939 Grid Technologies (21) 154 90 365 Transformation of Industry (39) 65 (98) 198 Siemens Gamesa (405) (2,561) (1,048) (3,770) Reconciliation to Siemens Energy (58) (38) (9) (141) Profit (481) (2,
Slide 29: Cash Flow Statement
Cash Flow Statement Siemens Energy In €m Q3 FY22 Q3 FY23 Q1-Q3 FY22 Q1-Q3 FY23 Net income (564) (2,931) (1,066) (3,718) Amortization, depreciation and impairments 516 406 1,250 1,125 Change in operating net working capital Contract assets (272) 209 116 (58) Inventories (352) (486) (1,634) (1,582) Tr
Slide 30: FY22 retrospective adjustments – Profit before Special Items
Historical comparable key figures FY22 retrospective adjustments – Profit before Special Items Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 FY22 FY22 FY22 FY22 FY22 FY22 FY22 FY22 FY22 FY22 Profit before Special Items (in €m) adj.1 adj.1 adj.1 adj.1 adj.1 Gas Services 173 173 176 176 153 153 117 117 619 619 Grid Technol