Siemens Energy Ag · XETR:ENR
Siemens Energy — J.P. Morgan European Capital Goods Conference 2023
25 slides from Siemens Energy's conference presentation, Jun 8, 2023
Slide 1: Leading the Energy Transition
Leading the Energy Transition Tim Holt, Member of the Executive Board J.P. Morgan European Capital Goods Conference June 8 & 9, 2023 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023
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: Key messages
Key messages Our Ourvision vision The electricity and energy market is under significant change and will receive substantial investment over the next decades Siemens Energy is well To become the most Since the spin-off of Siemens Energy in 2020 we have made positioned to become the valued energy tec
Slide 4: Siemens Energy is a global leader in the energy business
Siemens Energy is a global leader in the energy business ~ 1/6 92,000 of global electricity generation employees work as a team is based on our technology. to energize society.1 We are present in We invest around > 90 countries. €1bn annually in research and development. 1 Number of employees as of
Slide 5: There are multiple scenarios how the electricity market will develop
There are multiple scenarios how the electricity market will develop… Global electricity generation scenarios (TWh) Massive growth in renewable generation 75,000 Net Zero 70,000 65,000 Growth until 2030 60,000 Announced Pledges 55,000 Stated Policies +146% +300% 50,000 Stated Policies 45,000 3% – 4%
Slide 6: Common themes supported by accelerating change in boundary conditions
… but all of them have … supported by accelerating common themes … change in boundary conditions Electricity production will Production Inflation Reduction Act (IRA) – USA grow faster than GDP capacity will grow • Increasing electrification of • Capacity expansion will be industries covered by renew
Slide 7: We support our customers along the value chain
We support our customers along the value chain … Low- or zero-emission Transport and storage Reducing CO2 footprint and energy power generation of electricity consumption in industrial processes Business Area Siemens Gamesa Gas Services Grid Technologies Transformation of Industry #1 #3 #1 #1 Leadin
Slide 8: Connect the dots to drive benefits as an integrated energy technology company
… and connect the dots to drive benefits from being a global integrated energy technology company Power generation Bring to shore Storage Re-electrification Connecting offerings Offshore Wind HVDC Electrolysis/ H2 gas turbine Battery Connecting Europe USA Asia Pacific3 regions (56GW of HVDC)1 (19GW
Slide 9: Siemens Energy to utilize 5 levers to drive value
Siemens Energy to utilize 5 levers to drive value 01 02 03 04 05 New operating Grid Transformation model Gas Services Technologies of Industry Siemens Gamesa Increase customer focus, Monetize on installed Leverage market Decarbonize industrial Secure turnaround transparency base through service lead
Slide 10: New group structure increases customer focus, transparency and accountability
Strategic lever 1 New group structure increases customer focus, transparency and accountability… Siemens Energy Reporting Segments SE Executive Board Gas Grid Transformation Global CEO CFO Siemens Gamesa Services Technologies of Industry Functions Anne-Laure de Christian Bruch Maria Ferraro Karim Am
Slide 11: New operating model with less hierarchy, more accountability and focus on excellence
Strategic lever 1 New operating model (since October 1, 2022) with less hierarchy, more accountability and a focus on excellence Clear Structures Unified go to market Operational excellence Focused innovation • Hierarchy layers reduced from • Harmonized regional footprint • Integrated global functio
Slide 12: Gas Services: Monetize installed base through service and decarbonization
Strategic lever 2 Gas Services Monetize on installed base through service and decarbonization Share of Siemens Energy What has changed total revenue in the new group structure? Business Drivers • Decarbonization of power generation and district heating GEN • Service, Mods and Upgrades to increase Ga
Slide 13: Grid Technologies: Leverage market leadership
Strategic lever 3 Grid Leverage market leadership to benefit Technologies from accelerating investment Share of Siemens Energy What has changed total revenue1 in the new group structure? Business Drivers • Growing electricity demand • Connection of increasing amount Complete of renewable energy T Po
Slide 14: Transformation of Industry: Decarbonize industrial sector
Strategic lever 4 Transformation Decarbonize industrial sector of Industry through focus on hydrogen and EAD Share of Siemens Energy What has changed total revenue in the new group structure? Business Drivers Complete • Growing demand for green hydrogen NEB Portfolio and derivative fuels • Increasin
Slide 15: Siemens Gamesa: Secure turnaround
Strategic lever 5 Siemens Gamesa Secure turnaround Share of Siemens Energy total revenue Wind market shows exceptional future growth Annual global onshore wind Annual global offshore Global installed capacity installations3 (GW, excl. China) installations3 (GW, excl. China) in wind3 (GW, excl. China
Slide 16: ESG is core to our activities and provides a business opportunity
ESG is core to our activities and provides a business opportunity E Environment S Social G Governance Decarbonization Gender diversity Safety Our Targets Climate neutral own 25% by 2025 Achieve Zero Harm operations by 2030 30% by 2030 Become the leader Aspiration of Net Zero value chain (share of wo
Slide 17: We energize society
We energize society Tim Holt – Member of the Executive Board 17 June 8 & 9, 2023 © Siemens Energy, 2023
Slide 18: Appendix
Appendix Tim Holt – Member of the Executive Board 18 June 8 & 9, 2023 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023
Slide 19: Key Messages Q2 FY23
Key Messages Q2 FY23 Highlights / Lowlights • Siemens Gamesa delisted; EGM called for resolution on capital reduction • Successful refinancing: capital raise (~ €1.3bn), green bond (€1.5bn) Q2 FY23 Financial Performance1 • Ongoing strong performance of former Gas and Power businesses • Orders: +56.3
Slide 20: Q2 FY23 Awards and Milestones
Version 18 Q2 FY23 Awards and Milestones Reducing the CO2 footprint & energy consumption in industrial Power generation with low or zero emissions Transport and storage of energy processes Gas Services Siemens Gamesa Grid Technologies Transformation of Industry One of Europe’s most efficient gas- Gr
Slide 21: Gas Services: Strong Improvement Across all KPIs
Gas Services: Strong Improvement Across all KPIs Q2 FY231 Orders Revenue Profit before SI in €bn in €bn in €m +23% / +23%2 7.7% 6.4% 4.2% 12.4% 10.5% +27% /+25%2 4,5 3,6 3,8 2,8 2,8 +70% 2,4 2,6 2,3 318 2,6 2,6 299 176 153 117 Q2 FY22 Q3 Q4 Q1 Q2 FY23 Q2 FY22 Q3 Q4 Q1 Q2 FY23 Q2 FY22 Q3 Q4 Q1 Q2 FY2
Slide 22: Grid Technologies: Substantial Growth and Better Profitability
Grid Technologies: Substantial Growth and Better Profitability Q2 FY231 Orders Revenue Profit before SI in €bn in €bn in €m +44% / +45%2 5.0% 1.6% 3.9% 6.9% 6.6% +27% / +26%2 6,3 2,0 +67% 1,6 1,7 1,6 110 115 3,8 1,4 2,7 2,9 77 69 2,0 26 Q2 FY22 Q3 Q4 Q1 Q2 FY23 Q2 FY22 Q3 Q4 Q1 Q2 FY23 Q2 FY22 Q3 Q4
Slide 23: Transformation of Industry: Strong Margin Progression Across all Businesses
Transformation of Industry: Strong Margin Progression Across all Businesses Q2 FY231 Orders Revenue Profit before SI in €bn in €bn in €m 0% / (1)%2 0.5% 1.6% 3.8% 5.7% 6.3% +21% / +20%2 1,6 1,4 1,4 1,3 n/a 1,2 1,2 1,2 1,0 1,0 1,0 73 57 47 17 5 Q2 FY22 Q3 Q4 Q1 Q2 FY23 Q2 FY22 Q3 Q4 Q1 Q2 FY23 Q2 FY2
Slide 24: Siemens Gamesa: Continuous Impact from Onerous Projects
Siemens Gamesa: Continuous Impact from Onerous Projects Q2 FY231 Orders Revenue Profit before SI in €bn in €bn in €m +212% / +204%2 (13.8)% (15.7)% 11.1% (37.8)% (15.4)% +14% / +12%2 4,4 (24)% 3,5 3,6 3,4 2,4 2,4 374 2,2 2,0 1,6 1,2 (301) (382) (374) Q2 FY22 Q3 Q4 Q1 FY23 Q2 Q2 FY22 Q3 Q4 Q1 FY23 Q2
Slide 25: Financial Outlook Adjusted
Financial Outlook Adjusted Fiscal Year 2023 Outlook FY231 Revenue Growth2 Profit3 Margin before SI Siemens Energy 10 – 12% (prev. 3 - 7%) around the low end of 1 – 3% (prev. 1 - 3%) We expect a net loss exceeding prior fiscal year’s level by up to a low-triple-digit million € amount. (prev. to be on
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