Siemens Energy Ag · XETR:ENR
Siemens Energy — Q2 2022 Earnings Presentation
33 slides from Siemens Energy's earnings presentation, May 11, 2022
Slide 1: Gas and Power with solid performance, disappointing results at SGRE weigh down
Gas and Power with solid performance, disappointing results at SGRE weigh down Siemens Energy Group Christian Bruch, President and CEO Siemens Energy Maria Ferraro, CFO Siemens Energy Analyst presentation Q2 FY22 Berlin, May 11, 2022 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted
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 FY22 3 2022-05-11 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 4: Key Messages
Key Messages Highlights / Lowlights • SGRE profit warning (April 19, 2022) • Solid performance in Gas and Power (GP) • Siemens Energy stopped all new business activities in Russia Q2 FY22 Financial Performance Market Environment • Orders: (27.5)% comp.2 at €7.9bn • Solid order environment across all
Slide 5: SGRE: renewed risk assessment leads to a reset of expectations
Renewed risk assessment under the new CEO leads to a reset of expectations • Operational problems are bigger than expected due to internal challenges (maturity of product design of the 5.X, manufacturing ramp up process, NCCs, project execution) and supply chain constraints • Outlook continuously de
Slide 6: War in Ukraine effects revenue and profitability, Gas and Power business in Russia under review
War in Ukraine effects revenue and profitability, Gas and Power business in Russia under review • All new business development activity in Russia stopped since beginning of the war • c. €300 – €400m loss of revenue in FY22 (based on the current sanction regime) Current status • High double digit/low
Slide 7: Supply chain constraints lead to higher costs and under-absorption in GP
Supply chain constraints lead to higher costs and under-absorption in GP Current Challenges Impact (roughly €100m impact on profitability) €10.5bn of purchasing volume includes • Copper: 15,000 – 20,000 tons Raw Material Costs • Electrical steel: 100,000 tons • Aluminum: 10,000 – 15,000 tons • Stain
Slide 8: Q2 FY22 awards and milestones
Version 18 Q2 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 Picture to be replaced Efficient and future-proof power Increased supply security Production of electrolysers o
Slide 9: CFO section
CFO section Maria Ferraro, CFO Analyst Call | Q2 FY22 9 2022-05-11 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 10: Siemens Energy Group: Strong order intake results in record order backlog
Siemens Energy Group: Strong order intake results in record order backlog Q2 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (25)% / (27)%1 10.5 +2% / (2)%1 7.9 n/a 6.5 6.6 288 2.2 2.4 10% 4.3 4.2 (3)% (21) 4.4% (0.3)% Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Services New U
Slide 11: Siemens Energy Group: SGRE weighs on performance
Siemens Energy Group: SGRE weighs on performance Q2 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (25)% / (27)%1 10.5 +2% / (2)%1 n/a 9.1 288 8.3 7.9 8.2 7.3 5.9 6.5 6.0 6.6 54 (46) (63) (21) 4.4% +2.9% 0.7% (0.6)% (1.1)% (0.3)% Q2 FY21 Q3 Q4 Q1 Q2 FY22 Q2 FY21 Q3 Q4 Q1 Q2 FY22
Slide 12: Net Cash Position remains solid
Net Cash Position remains solid Net cash/(Net debt) as of March 31, 2022 (in €m) 5,030 5,131 FY22 expected cash-out 101 SGRE: €2.8 bn • Restructuring (>€200m) SE excl. SGRE: €0.5 bn (3,327) • Non carve-out countries(c. €200m) (189) 1,615 (725) (89) 801 Cash and cash Receivables from Total Long- and
Slide 13: Gas and Power: Solid performance in Q2 FY22
Gas and Power1: Solid performance in Q2 FY22 Q2 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +34% / +29%² 6.7 +6% / +3%² +42% 4.2 4.4 266 5.0 1.7 1.9 8% 188 2.5 5% 2.4 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 4.5% 6.0% Services New Unit Q2 FY21 Q2 FY22 Order Backlog3 Book-to-Bill Ratio
Slide 14: Gas and Power: Strong orders and profitability
Gas and Power1: Strong orders and profitability Q2 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +34% / +29%² +6% / +3%² 6.7 +42 6.2 5.9 5.4 266 5.0 4.6 4.4 225 242 4.4 4.2 4.1 188 153 4.5% 4.9% 2.9% 5.8% 6.0% Q2 FY21 Q3 Q4 Q1 Q2 FY22 Q2 FY21 Q3 Q4 Q1 Q2 FY22 Q2 FY21 Q3 Q4 Q1 Q2
Slide 15: Financial Priorities for FY22
Financial 1 Execution of cost out programs; additional measures to mitigate negative impacts from war and Covid-19 Priorities for FY22 2 Continuous tight management of net working capital; strong focus on liquidity More transparency – new reporting structure from 3 October 1, 2022 Analyst Call | Q2
Slide 16: Siemens Energy Financial Outlook and Framework
Financial Outlook and Framework Actuals Outlook Mid-term target FY20 FY21 FY22 FY23 Revenue €18.1bn €18.4bn 1%-5% Gas and Power (low end of the range) % Change y-o-y2 (3.1)% 1.5% Adj. EBITA before Special Items €254m €849m 4.5%-6.5% 6%-8% (low end of the range) % Margin before Special Items 1.4% 4.6
Slide 17: Management Priorities for FY22
1 Deliver on the fundamentals at GP; support turnaround at SGRE Management Priorities for 2 Focus on supply chain, logistics and raw materials FY22 3 Refine operating model and shape organization towards the three pillars 4 Focus the company on sustainable growth elements Analyst Call | Q2 FY22 17 2
Slide 18: We are #TeamPurple #WeEnergizeSociety
We are #TeamPurple #WeEnergizeSociety Meet us at our CMD May 23-24, 2022 in Berlin Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 19: Questions & Answers
Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q2 FY22 19 2022-05-11 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 20: Financial Calendar Contact Investor Relations
Financial Calendar 2022 May 11 May 23-24 June/July Aug 8 Nov 16 Q2 FY22 Capital Market Day Conferences and Q3 FY 22 Q4 FY22 roadshows Contact Investor Relations Michael Hagmann Tobias Hang Harald Albrecht Head of Investor Relations tobias.hang@siemens-energy.com albrecht.harald@siemens-energy.com mi
Slide 21: Appendix
Appendix Analyst Call | Q2 FY22 21 2022-05-11 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 22: Special Items
Special Items Reconciliation of Adj. EBITA before Special Items In €m Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Gas and Power Gas and Power1 • Personal Restructuring costs (severance) Adj. EBITA before Special Items 188 266 456 508 Takes into account progress on existing programs Restructuring and integration
Slide 23: Net Income Transition
Net Income Transition Siemens Energy In €m Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 170 234 363 492 Financial result Gas and Power Impacted by interest expenses and currency effects SGRE 42 (301) 113 (620) Reconciliation to Siemens Energy (14) - (34) 2 Tax Adj. EBITA 197 (77) 439 (135) €60m income tax expens
Slide 24: Cash Flow Statement
Cash Flow Statement Siemens Energy In €m Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Net income 31 (252) 130 (492) CAPEX Amortization, depreciation and impairments 355 399 699 734 Change in operating net working capital • Increase by €58m y-o-y driven by both segments Contract assets 39 121 (167) 388 Free Cash
Slide 25: Nominal versus comparable growth rates
Nominal versus comparable growth rates Siemens Energy In €m Q2 FY21 Q2 FY22 % nom. % comp.1 H1 FY21 H1 FY22 % nom. % comp.1 Gas and Power2 5,034 6,743 34.0 29.0 10,200 12,633 23.9 20.2 SGRE 5,500 1,198 (78.2) (78.8) 7,781 3,670 (52.8) (53.6) Reconciliation to Siemens Energy (14) (33) (29) (65) Total
Slide 26: Disaggregation of revenue
Disaggregation of revenue Siemens Energy In €m Q2 FY21 Q2 FY22 % change H1 FY21 H1 FY22 % change Types of activities in Gas and Power New units 2,408 2,533 5.2 4,908 4,900 (0.2) Service contracts 1,738 1,872 7.7 3,484 3,632 4.2 Types of business in SGRE Wind turbines 1,902 1,662 (12.6) 3,801 3,062 1
Slide 27: Gas and Power: Development by businesses
Version 18 Gas and Power: Development by businesses Q2 FY22 in % nom. y-o-y Q1 FY22 Q2 FY22 Gas and Power +++ +++ Grading system Order Generation +++ +++ growth >10% +++ Industrial Applications +++ +++ 5% - 10% ++ 0% - 5% + Transmission ++ +++ 0% - (5)% - Gas and Power - ++ (5)% - (10)% -- > (10)% -
Slide 28: Profit and Loss Statement (I)
Profit and Loss Statement (I) Siemens Energy In €m Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Revenue 6,484 6,582 13,024 12,538 Cost of sales (5,471) (5,859) (11,009) (11,093) Gross profit 1,013 723 2,015 1,445 Gross profit margin 15.6% 11.0% 15.5% 11.5% Research and development expenses (289) (265) (525) (491
Slide 29: Profit and Loss Statement (II)
Profit and Loss Statement (II) Siemens Energy In €m Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Gas and Power1 4,171 4,424 8,463 8,564 SGRE 2,336 2,177 4,631 4,006 Reconciliation to Siemens Energy (23) (19) (70) (32) Total Revenue 6,484 6,582 13,024 12,538 Gas and Power1 188 266 456 508 SGRE 113 (278) 231 (585)
Slide 30: Statement of Financial Position
Statement of Financial Position Siemens Energy In €m Sep. 30, 2021 Mar. 31, 2022 Goodwill and other intangible assets 13,099 13,288 Property, plant and equipment and other non-current assets 7,645 7,940 Inventories 6,146 7,552 Trade and other receivables 5,110 5,377 Contract assets 4,913 4,630 Cash
Slide 31: Profit Bridge from SGRE to SE disclosure
Profit Bridge from SGRE to SE disclosure Q2 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 32: 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 33: 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 ext. Quarter (as reported in FY21) 267 187 231 165 849 Quarter restated1 268 188 225 153 834 Change due to restat