Siemens Energy Ag · XETR:ENR
Siemens Energy — Q4 2024 Earnings Presentation
54 slides from Siemens Energy's earnings presentation, Nov 13, 2024
Slide 1: Siemens Energy achieves all annual goals and sets new targets for 2028
Siemens Energy achieves all annual goals and sets new targets for 2028 Christian Bruch, President and CEO Siemens Energy Maria Ferraro, CFO Siemens Energy Analyst presentation Q4 FY24 and FY24 Munich, November 13, 2024 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Ener
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: Q4 FY24 and FY24 recap
CEO section Q4 FY24 and FY24 recap Christian Bruch, CEO Analyst Call | Q4 FY24 3 2024-11-13 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2024
Slide 4: Key Messages
Key Messages Q4 FY24 Financial Performance ▪ Orders: 42.3% comp.2 at €15.0bn Top end of FY24 guidance reached for all KPIs ▪ Order backlog at new record high of €123bn ▪ Revenue: 16.6% comp.2 at €9.7bn; book-to-bill of 1.54 • Strong revenue growth and significant margin expansion ▪ Profit before SI:
Slide 5: FY24 performance – top end of guidance reached for all KPIs
FY24 performance – top end of guidance reached for all KPIs FY24 FY24 FY23 guidance Revenue growth 10 – 12%1 12.8% ✓ 9.9% Profit margin before SI (1) – 1%2 1.0% ✓ (8.9)% FCF pre tax €1 – 1.5bn €1.9bn ✓ €0.8bn Net income Up to €1bn €1.3bn ✓ €(4.6)bn 1 Comparable revenue growth (excluding currency tra
Slide 6: Q4 FY24 examples – serving the energy transition and growing demand
Version 18 Q4 FY24 examples – serving the energy transition and growing demand 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 1.2 GW Oil-to-Gas shift in Rabigh, Inaugurati
Slide 7: CFO section: Q4 FY24 and FY24 in numbers
CFO section Q4 FY24 and FY24 in numbers Maria Ferraro, CFO Analyst Call | Q4 FY24 7 2024-11-13 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2024
Slide 8: Siemens Energy Group: Strong revenue growth and significant margin improvement in FY24
Siemens Energy Group: Strong revenue growth and significant margin improvement in FY24 Orders Revenue Profit before SI in €bn in €bn in €m Service New Units +1% / (0)%1 +13% / +11%1 (8.9)% 1.0% 50.4 50.2 34.5 31.1 12.2 +10% n/a 11.1 345 (2,776) 20.0 22.3 +11% FY23 FY24 FY23 FY24 FY23 FY24 Order back
Slide 9: Gas Services: Solid finish to the year
Gas Services: Solid finish to the year – profitability seasonally weaker in Q4 Orders Revenue Profit before SI in €bn in €bn in €m 0.89 1.53 1.30 1.92 1.30 4.4% 11.7% 14.4% 6.8% 5.2% +40% / +42%1 +14% 5.3 381 4.1 +1% / (2)%1 313 3.4 3.6 2.5 2.8 2.7 2.6 2.7 2.7 186 124 141 Q4 FY23 Q1 Q2 Q3 Q4 FY24 Q4
Slide 10: Grid Technologies: Strong revenue growth drives profitability in Q4
Grid Technologies: Strong revenue growth drives profitability in Q4 Orders Revenue Profit before SI in €bn in €bn in €m 1.13 3.96 1.70 1.54 1.99 7.8% 10.2% 11.4% 10.3% 10.2% +139% / +136%1 +75% 8.2 +39% / +34%1 277 250 237 213 5.4 2.7 2.2 2.3 158 3.7 3.5 2.0 2.1 2.3 Q4 FY23 Q1 Q2 Q3 Q4 FY24 Q4 FY23
Slide 11: Transformation of Industry: Highest quarterly orders to date
Transformation of Industry: Highest quarterly orders to date pave way for profitable growth Orders Revenue Profit before SI in €bn in €bn in €m 1.37 1.44 1.24 0.86 1.50 2.4% 9.2% 6.2% 7.8% 6.7% +28% / +24%1 >200% 2.1 105 103 93 1.7 1.6 1.6 +14% / +13%1 79 1.1 1.2 1.3 1.3 1.4 1.1 30 Q4 FY23 Q1 Q2 Q3
Slide 12: Siemens Gamesa: Stabilized in line with expectations in Q4
Siemens Gamesa: Stabilized in line with expectations in Q4 Orders Revenue Profit before SI in €bn in €bn in €m 1.63 0.77 0.38 0.26 1.34 (25.6)% (20.9)% (19.4)% (17.5)% (14.9)% (3)% / (2)%1 +20% / +19%1 +31% 4.2 4.1 3.1 2.6 2.3 2.6 2.0 1.6 0.9 (426) (448) (449) (458) 0.7 (664) Q4 FY23 Q1 Q2 Q3 Q4 FY2
Slide 13: CEO section: Delivering our strategy – Mid-term outlook
CEO section Delivering our strategy – Mid-term outlook Christian Bruch, CEO Analyst Call | Q4 FY24 13 2024-11-13 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2024
Slide 14: Strong electricity growth drives significant infrastructure investments
Version 18 Strong electricity growth drives significant infrastructure investments Global electricity demand in 1,000 TWh Key market drivers Electricity demand 2024 Forecast1 +12 – 15% • Increasing population and living standards Data center upside2 36 – 39 • Shift to electrification (CAGR 2024-2040
Slide 15: Siemens Energy is well positioned to benefit from market trends
Version 18 Siemens Energy is well positioned to benefit from market trends Power generation with low or zero emissions Network infrastructure Decarbonization of the industry Gas Services Siemens Gamesa Grid Technologies Transformation of Industry Market position #2 #1 #1 #1 #2 Gas turbines >10MW 1 O
Slide 16: Gas Services – growing in an attractive market
Version 18 Gas Services – growing in an attractive market Market environment Our Focus Business Performance Gas as cornerstone for the energy Competitive portfolio €45bn of which ~80% Service transition Order backlog2 • Sustain improved gross margins • Technology leadership, cost-out and selectivity
Slide 17: Grid Technologies – fastest growing business with attractive profitability
Version 18 Grid Technologies – fastest growing business with attractive profitability Market environment Our Focus Business Performance Fast growing market with 12% CAGR Scaling up capacities €33bn • 2 new factories go live in 2026, focus on Order backlog2 effective use of capital Connection of rene
Slide 18: Transformation of Industry – operational excellence and capturing new opportunities
Version 18 Transformation of Industry – operational excellence and capturing new opportunities Market environment Our Focus Business Performance Accelerate performance improvement ~€8bn of which 30% Service Acceleration of industry Order backlog3 • Turnaround of compression and steam business achiev
Slide 19: Siemens Gamesa – stepwise turnaround
Version 18 Siemens Gamesa – stepwise turnaround, benefitting from continuous growth trend Market environment Our Focus – path towards profitability Business Performance Successful service business €38bn of which 50% Service Market to reach 100 GW in FY301 • Maximizing return from installed fleet (>1
Slide 20: Leveraging strong growth in electricity demand to drive business profitability
Version 18 Leveraging strong growth in electricity demand to drive business profitability Capital allocation focus Electricity demand drives company growth 1 Backlog execution Existing businesses provide substantial 2 Balance sheet strength growth opportunities 3 Capex for additional growth Grid bus
Slide 21: CFO section: Financial foundation for mid-term targets
CFO section Financial foundation for mid-term targets Maria Ferraro, CFO Analyst Call | Q4 FY24 21 2024-11-13 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2024
Slide 22: We have come a long way – raised expectations across GS, GT, TI
Version 18 We have come a long way – raised expectations across GS, GT, TI – committed to SG break-even in FY26 Gas Services Grid Technologies Transformation of Ind. Siemens Gamesa Revenue growth1 LSD/MSD LDD HSD LSD/MSD Profit margin before SI2 12-14% 13-15% 10-12% 3-5% 10-12% 8-10% 1y earlier 10-1
Slide 23: Targets are underpinned by a record order backlog with improved margin profile
Version 18 Targets are underpinned by a record order backlog with improved margin profile Order backlog Backlog project margin Revenue (in €bn) 90%2 coverage FY25 123 +1pp 14%1 +2pp 112 Resilient 97 48%3 service share +1pp 84 +2pp +3pp +3pp Backlog execution plan (SG) (in €bn) -4pp 38 ON 0pp 3 OF SV
Slide 24: Committed to a sound balance sheet
Version 18 Committed to a sound balance sheet – solid net cash through rigid execution of portfolio program Adj. net cash (debt) transition Net cash FY24 in €bn in €bn +2.7 6.4 0.5 1.9 4.6 2.8 3.3 2.0 0.6 2.0 0.0 1.9 (0.8) FY23 FCF Portfolio1 Tax & others FY24 FY25e Cash Cash Short- Long- Pension Cr
Slide 25: Continuously strong cash performance
Version 18 Continuously strong cash performance Net operating working capital Capital expenditures Free cash flow pre tax in €bn in €bn in €bn ~2 ∑5 1.9 1.5 1.5 (1.5) 1.2 1.2 Up to 0.8 1 (3.0) (4.1) FY22 FY23 FY24 FY25e FY26ff FY22 FY23 FY24 FY25e FY26ff FY22 FY23 FY24 FY25e • Well prefinanced worki
Slide 26: Clear path to shareholder value creation
Version 18 Clear path to shareholder value creation Revenue Profit margin before SI Capital allocation guardrails Revenue growth HSD/LDD 10 – 12% Capital Investment 8 – 10% Structure Grade 34.5 31.1 3 – 5% 29.0 0.8% 1.0% Dividend 40 – 60% Policy2 (8.9)% FY22 FY23 FY24 FY25e FY28e FY22 FY23 FY24 FY25
Slide 27: Financial outlook FY25 and FY28 targets
Version 18 Financial outlook FY25 and FY28 targets FY25 Outlook FY28 Targets Revenue Profit margin Revenue Margin growth1 before SI2 CAGR3 reported2 Gas Services 7 – 9% 10 – 12% Low / mid-single digit 12 – 14% Grid Technologies 23 – 25% 10 – 12% Low-double digit 13 – 15% Transformation of Industry 1
Slide 28: Wrap up
Wrap up Analyst Call | Q4 FY24 28 2024-11-13 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2024
Slide 29: FY25 priorities remain unchanged – higher growth and profitability targets
Version 18 FY25 priorities remain unchanged – higher growth and profitability targets FY24 operational performance better than expected Deliver on profitable growth Strong electricity market growth provides opportunities for all SE businesses Record order backlog with improved margin profile Fix sup
Slide 30: We energize society
0Oktober 2022 We energize society © Siemens Energy, 2024
Slide 31: Questions & Answers
Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q4 FY24 31 2024-11-13 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2024
Slide 32: Financial Calendar and Investor Relations Contact
Financial Calendar 2025 Nov 13 Dec 12 Feb 12 Feb 20 May 8 Aug 6 Q4 FY24 Annual Report Q1 FY25 AGM Q2 FY25 Q3 FY25 2024 Contact Investor Relations Michael Hagmann Harald Albrecht Tobias Hang Head of Investor Relations albrecht.harald@siemens-energy.com tobias.hang@siemens-energy.com michael.hagmann@s
Slide 33: Appendix
Appendix Analyst Call | Q4 FY24 33 2024-11-13 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2024
Slide 34: Additional financial disclosure for Siemens Gamesa
Additional financial disclosure for Siemens Gamesa Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 WTG Profit margin before SI (33.8)% (26.4)% (21.6)% (5.0)% (19.4)% Revenue (€m) 914 691 705 742 890 Volume (MWe) 1,317 742 728 873 1,013 Onshore Order intake (€m) 875 476 92 29 466 Order intake (MW)1 1,244 759
Slide 35: FY25 financial considerations for Siemens Energy
FY25 financial considerations for Siemens Energy FY24 FY25 Commentary Reconciliation line on Profit before SI neg. €0.25bn ~ neg. €0.3bn Excl. impacts related to the change in fair values of transaction Financial result neg. €0.3bn ~ neg. €0.2bn related derivatives R&D €1.2bn ~ €1.2bn Capital expend
Slide 36: Net Income Transition
Net Income Transition Siemens Energy In €m Q4 FY23 Q4 FY24 FY23 FY24 Gas Service 114 137 1,053 1,018 Grid Technologies 152 268 520 1,197 Transformation of Industry 12 109 210 392 Siemens Gamesa (670) (472) (4,439) (1,734) Reconciliation to Siemens Energy (160) (157) (303) 1,509 Profit (551) (115) (2
Slide 37: Cash Flow Statement
Cash Flow Statement Siemens Energy In €m Q4 FY23 Q4 FY24 FY23 FY24 Net income (870) (254) (4,588) 1,335 Amortization, depreciation and impairments 390 433 1,515 1,511 Change in operating net working capital Contract assets 379 136 321 (132) Inventories 347 346 (1,235) (1,221) Trade receivables (53)
Slide 38: Gas Services
Gas Services Analyst Call | Q4 FY24 38 2024-11-13 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2024
Slide 39: Gas Services is well positioned in a growing market
Gas Services Version 18 Gas Services is well positioned in a growing market Market environment Market Outlook, in GW additions Focus Markets Market Data Center Upside GER: “Kraftwerkssicherungsgesetz” plan (~13GW) Gas as cornerstone for the energy on H2-ready generation transition Europe: Coal-to-Ga
Slide 40: Focus on profitable growth
Gas Services Version 18 Focus on profitable growth Key focus areas Business outlook Orders and revenue (in €bn) Competitive portfolio 16.4 1 • Sustain improved gross margins Orders 11.8 12.9 10.9 10.8 7 – 9%2 LSD/MSD3 • Technology leadership, cost-out and selectivity 9.4 • 30% capacity expansion for
Slide 41: Best-in-class service performance
Gas Services Version 18 Best-in-class service performance Strong service performance improvement over the past two years… +200 +€3bn +2pp +20% +65% units added to fleet backlog growth backlog project margin revenue growth order growth …with solid fundamentals for future expansion, benefiting from mi
Slide 42: Grid Technologies
Grid Technologies Analyst Call | Q4 FY24 42 2024-11-13 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2024
Slide 43: Grid Technologies is well positioned in a fast growing market with 12% CAGR
Grid Technologies Version 18 Grid Technologies is well positioned in a fast growing market with 12% CAGR Market environment Market outlook1 in €bn Fast growing market with 12% CAGR +12%2 201 178 142 152 Connection of renewables to multiply 81 Ageing infrastructure requires replacement FY22 FY24 FY25
Slide 44: Fastest growing business with attractive profitability
Grid Technologies Version 18 Fastest growing business with attractive profitability Key focus areas Business outlook Orders and revenue (in €bn) 1 Scaling up Capacities • 2 new factories go live in 2026, focus on effective use of capital 10.4 15.8 20.9 23 – 25%2 LDD3 • Expansion investment of ~€1.1b
Slide 45: €1.1bn upcoming investments
Grid Technologies Capacity expansions and investment in workforce to scale up capabilities Capacity People 2 new greenfield factories +6,000 headcounts2 Go live in 2026 To be ramped up including partners €1.1bn upcoming investments1 ~50% in best cost countries Spent for expansions & optimization of
Slide 46: Transformation of Industry
Transformation of Industry Analyst Call | Q4 FY24 46 2024-11-13 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2024
Slide 47: Significant growth in both conventional and decarbonization markets
Transformation of Industry Version 18 Significant growth in both conventional and decarbonization markets Market environment Market outlook1 in €bn 75+ Acceleration of industry +15%1 63 electrification 38 43 26 Growing service demand for our FY22 FY24 FY25 FY28 FY30 equipment Conventional + Energy E
Slide 48: Operational excellence and capturing new opportunities
Transformation of Industry Version 18 Operational excellence and capturing new opportunities Key focus areas Business outlook Orders and revenue (in €bn) Accelerate performance improvement 1 • Turnaround of compression and steam business achieved Orders 5.6 5.6 6.4 11 – 13%3 HSD4 5.1 • Prioritize pr
Slide 49: Leveraging installed fleet to maximize service share
Transformation of Industry Version 18 Leveraging installed fleet to maximize service share Installed fleet by region1 Service by contract type1 Service value drivers Service revenue growth2 Long-term service contracts Asia Pacific Europe 15% 15% 5% +35% Latin Modernizations & 25% America 10% Middle
Slide 50: Wind Power business Siemens Gamesa
Wind Power business Siemens Gamesa Analyst Call | Q4 FY24 50 2024-11-13 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2024
Slide 51: Siemens Gamesa to benefit from continuous demand in both Onshore and Offshore
Siemens Gamesa Version 18 Siemens Gamesa to benefit from continuous demand in both Onshore and Offshore Market environment Market outlook1 in GW 10%2 27%2 Market to reach 100 GW in FY301 100 7%2 85 thereof ~73% onshore and ~27% offshore 61 46 45 Industry becomes more mature FY22 FY24 FY25 FY28 FY30
Slide 52: Turnaround stepwise and benefit from unbroken growth trend
Siemens Gamesa Version 18 Turnaround stepwise and benefit from unbroken growth trend Key focus areas Business outlook Successful service business Orders and revenue (in €bn) 1 • Maximizing return from installed fleet (>140GW) Orders 11.6 16.8 7.3 LSD/MSD2 • Driving profitable aftermarket sales 9.8 1
Slide 53: Service will be a key contributor to break-even in FY26
Siemens Gamesa Version 18 Service will be a key contributor to break-even in FY26 Key value drivers Service KPIs Fleet under service Maximize return from current fleet 1 • Execute field implementation of QTF solutions by mitigating/optimizing costs as much as feasible Offshore ~27GW ~90GW • Reliable
Slide 54: Siemens Gamesa – path to break-even in FY26
Version 18 Siemens Gamesa – execution of legacy backlog and defined improvement measures will pave the way to break-even in FY26 Main building blocks towards break-even in €bn FY26 break- even -1.8 FY24 Offshore Service Turnaround Operational FY26 profitability profitability Onshore excellence Analy