Siemens Energy Ag · XETR:ENR
Siemens Energy — Q3 FY2021 Earnings Presentation
31 slides from Siemens Energy's earnings presentation, Aug 4, 2021
Slide 1: Gas & Power on track, SGRE impacted by onshore wind
Gas & Power on track, SGRE impacted by onshore wind Christian Bruch, President and CEO Siemens Energy Maria Ferraro, CFO Siemens Energy Analyst presentation Q3 FY21 Munich, August 4, 2021 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
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 FY21 3 2021-08-04 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 4: Q3 FY21 Key Messages
Q3 FY21 Key Messages Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (37)% / (36)%1 +9% / +11%1 €54m Return to growth, but 9.4 6.7 7.3 5.9 disappointing profitability Free Cash Flow pre tax Q3 FY20 Q3 FY21 €328m Q3 FY20 Q3 FY21 Highlights / Lowlights Gas and Power delivering as expected; SGRE
Slide 5: Executing our strategy
Executing our strategy Restructuring outside of Germany advancing well Focus and deliver on Negotiations with employee representatives in Germany in fundamentals arbitration; Voluntary Leaver Program in execution Mitsubishi Electric – collaboration on SF6-free high voltage Co-create innovations with
Slide 6: Q3 FY21 awards & milestones
Version 18 Q3 FY21 awards & milestones SüdOstLink takes Leipheim – grid green energy to the supporting plant place of consumption ensures grid stability and reliable power supply in southern Germany Electrification of first Hai Long – 1,044 of its kind biorefinery MW projects in in Germany Taiwan co
Slide 7: ESG – rating agencies continue to recognize our efforts
Version 18 ESG – rating agencies continue to recognize our efforts Siemens Energy and IRENA sign sustainable energy partnership agreement • Advancing the global energy transition based on renewable energy • Supporting sustainable development goals and climate action Prime Rating from ISS ESG • Sieme
Slide 8: Financial section
Financial section Maria Ferraro, CFO Analyst Call | Q3 FY21 8 2021-08-04 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 9: Focused on Sustainable Shareholder Value Creation
Focused on Sustainable Shareholder Value Creation Strong business foundation with large 1 order backlog and resilient service business Siemens Energy 2 Clear path to margin improvement with ongoing cost programs Value creation 3 Asset excellence – Cash upside from rigorous working capital management
Slide 10: Siemens Energy Group at a glance Q3 FY21
Siemens Energy Group at a glance Q3 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (37)% / (36)%1 9.4 +9% / +11%1 n/a 5.9 6.7 7.3 54 2.3 2.4 +6% (213) 4.4 4.8 +10% Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 (3.2)% 0.7% Q3 FY20 Q3 FY21 Services New Unit Order Backlog2 Book-to-Bill Ratio Free
Slide 11: Siemens Energy Group at a glance Q3 FY21
Siemens Energy Group at a glance Q3 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (37)% / (36)% 1 +9% / +11% 1 n/a 10.5 9.4 7.6 7.3 366 7.4 6.7 6.5 6.5 288 7.0 5.9 (213) 70 54 . (3.2)% 0.9% 5.6% 4.4% 0.7% Q3 FY20 Q4 Q1 Q2 Q3 FY21 Q3 FY20 Q4 Q1 Q2 Q3 FY21 Q3 FY20 Q4 Q1 Q2 Q3 FY21
Slide 12: Special Items
Special Items Reconciliation of Adj. EBITA before Special Items Q1-Q3 Q1-Q3 In €m Q3 FY20 Q3 FY21 Gas and Power FY20 FY21 Gas and Power • Personal Restructuring costs (severance) Takes into account further progress on existing Adj. EBITA before Special Items (55) 231 211 685 programs and new restruc
Slide 13: Net Income Transition
Net Income Transition Siemens Energy Q1-Q3 Q1-Q3 In €m Q3 FY20 Q3 FY21 FY20 FY21 PPA4 Gas and Power (765) 84 (539) 444 Q3 reduction reflects lower base due to write- SGRE (406) (185) (631) (72) down of intangibles in prior year Reconciliation to Siemens Energy (12) (23) (40) (56) Financial result Ad
Slide 14: Cash Flow Statement
Cash Flow Statement Siemens Energy Q1-Q3 Q1-Q3 In €m Q3 FY20 Q3 FY21 FY20 FY21 Net income (loss) (1,132) (307) (1,469) (177) CAPEX Amortization, depreciation and impairments 977 378 1,656 1,077 • Increase by €26m in Q3 Change in operating net working capital Free cash flow pre tax Contract assets (4
Slide 15: Net Cash Position
Net Cash Position Net cash / (Net debt) as of June 30, 2021 (in €m) 4,811 4,646 166 (2,831) 1,846 (134) (867) 917 (62) Cash and cash Receivables from Total liquidity Long- and Payables to Net cash / Pension Credit guarantees Adjusted Net equivalents Siemens Group short term debt Siemens Group (Net d
Slide 16: Gas and Power at a glance Q3 FY21
Gas and Power at a glance Q3 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +9% / +11%1 +7% / +9%1 4.5 4.6 4.1 4.3 n/a 1.9 +4% 231 1.8 (55) 2.7 +9% 2.4 (1.3)% -55 5.1% Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Services New Unit Order Backlog2 Book-to-Bill Ratio Free Cash Fl
Slide 17: Gas and Power at a glance Q3 FY21
Gas and Power at a glance Q3 FY21 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +9% / +11%1 +7% / +9%1 n/a 5.2 5.0 4.4 4.5 4.8 267 4.1 4.3 4.3 4.6 231 4.2 187 (55) 43 (55) (1.3)% 0.9% 6.2% 4.5% 5.1% Q3 FY20 Q4 Q1 Q2 Q3 FY21 Q3 FY20 Q4 Q1 Q2 Q3 FY21 Q3 FY20 Q4 Q1 Q2 Q3 FY21 • Increase
Slide 18: Key Messages
Key Messages GP • Delivering as planned • On track for FY21 & FY23 targets SGRE • Offshore and Service performing as planned; Onshore disappointing • Close alignment with SGRE board on remediation measures • Strategic imperative on wind power unchanged Restructuring • Solid progress outside of Germa
Slide 19: Financial outlook and framework
Financial outlook and framework Actuals Profit forecast 3-year guidance Mid-term target FY19 FY20 FY20 FY21 FY23 Revenue €18.7bn €18.1bn (5)%-(3)% 2%-6% Gas and Power % Growth y-o-y2 (1.4)% (3.1)% Adj. EBITA before Special Items €836m €254m 0%-2% 3.5%-5.5% 6%-8% % Margin before Special Items 4.5% 1.
Slide 20: We are #TeamPurple #WeEnergizeSociety
We are #TeamPurple #WeEnergizeSociety Siemens Energy is a trademark licensed by Siemens AG. Restricted © Siemens Energy, 2021
Slide 21: Questions & Answers
Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q3 FY21 21 2021-08-04 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 22: Financial Calendar and Contact Investor Relations
Financial Calendar 2021 Aug 4 Sep 10 Sep 13 Sep 22 Nov 10 Q3 FY21 Morgan Stanley Morgan Stanley Berenberg & Goldman Q4 FY21 Industrial CEOs Annual Laguna Sachs German Unplugged Conference Bay Conference Corporate Conference Contact Investor Relations Michael Hagmann Tobias Hang Harald Albrecht Head
Slide 23: Appendix
Appendix Analyst Call | Q3 FY21 23 2021-08-04 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2021
Slide 24: Nominal vs comparable growth rates
Nominal vs comparable growth rates Siemens Energy Q1-Q3 Q1-Q3 In €m Q3 FY20 Q3 FY21 % nom. % comp.1 % nom. % comp.1 FY20 FY21 Gas and Power 4,089 4,453 8.9 11.1 14,897 14,649 (1.7) 2.5 SGRE 5,342 1,520 (71.5) (71.7) 12,172 9,301 (23.6) (21.4) Reconciliation to Siemens Energy (13) (23) (55) (48) Tota
Slide 25: Disaggregation of external revenue
Disaggregation of external revenue Siemens Energy In €m Q3 FY20 Q3 FY21 % nom. Q1-Q3 FY20 Q1-Q3 FY21 % nom. Types of activities in Gas and Power . New units 2,430 2,653 9.2 7,656 7,556 (1.3) Service contracts 1,832 1,902 3.8 5,546 5,386 (2.9) Types of business in SGRE Wind turbines 1,947 2,179 11.9
Slide 26: Gas and Power: Development by businesses Q1-Q3 FY21
Version 18 Gas and Power: Development by businesses Q1-Q3 FY21 in % nom. y-o-y Q1 FY21 Q2 FY21 Q3 FY21 Grading system Gas and Power - -- ++ >10% +++ Order Generation - -- -- 5% - 10% 0% - 5% ++ + growth Industrial Applications - --- +++ 0% - (5)% - Transmission --- ++ +++ (5)% - (10)% > (10)% -- ---
Slide 27: Profit and Loss Statement (I)
Profit and Loss Statement (I) Siemens Energy In €m Q3 FY20 Q3 FY21 Q1-Q3 FY20 Q1-Q3 FY21 Revenue 6,675 7,262 19,828 20,286 Cost of sales (6,759) (6,563) (18,364) (17,572) Gross profit (83) 699 1,463 2,714 Gross profit margin (1.2)% 9.6% 7.4% 13.4% Research and development expenses (242) (285) (689)
Slide 28: Profit and Loss Statement (II)
Profit and Loss Statement (II) Siemens Energy In €m Q3 FY20 Q3 FY21 Q1-Q3 FY20 Q1-Q3 FY21 Gas and Power 4,292 4,577 13,326 13,036 SGRE 2,411 2,704 6,615 7,335 Reconciliation to Siemens Energy (28) (19) (114) (84) Total Revenue 6,675 7,262 19,828 20,286 Gas and Power (55) 231 211 685 SGRE (163) (154)
Slide 29: Statement of Financial Position
Statement of Financial Position Siemens Energy In €m Sep. 30, 2020 Jun. 30, 2021 Goodwill and other intangible assets 13,215 12,991 Property, plant and equipment and other non-current assets 7,268 7,558 Inventories 6,527 6,825 Trade and other receivables 4,963 5,030 Contract assets 4,545 5,018 Cash
Slide 30: Profit Bridge from SGRE to SE disclosure Q3 FY21
Profit Bridge from SGRE to SE disclosure Q3 FY21 Profit Bridge from SGRE1 to SE2 disclosure (in €m) (151) (31) 31 (154) 2 (5) (185) (56) 56 (238) EBIT Integration & PPA effects EBIT PPA effects3 Financial Cons. and Acc. Adj. EBITA Special Items5 Adj. EBITA (underlying) Restructuring (as reported) In
Slide 31: Framework for value creation
Version 18 Framework for value creation Performance Portfolio Covered in incentive framework Research and Portfolio Development optimization 6.5-8.5% ≥8% ~€1bn Resize Adj. EBITA margin before Adj. EBITA margin annual spending the portfolio Special Items Siemens Energy Siemens Energy mid-term target1