Siemens Energy Ag · XETR:ENR
Siemens Energy — Q1 FY2022 Earnings Presentation
35 slides from Siemens Energy's earnings presentation, Feb 9, 2022
Slide 1: Solid performance at Gas and Power overshadowed by development at SGRE
Solid performance at Gas and Power overshadowed by development at SGRE Christian Bruch, President and CEO Siemens Energy Maria Ferraro, CFO Siemens Energy Analyst presentation Q1 FY22 Berlin, February 9, 2022 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
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 | Q1 FY22 3 2022-02-09 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 4: Key Messages
Key Messages Highlights / Lowlights • SGRE profit warning • Very solid start in Gas and Power (GP) • Sustainability Report published on January 25, 2022 Q1 FY22 Financial Performance • Orders: +10.1% comp.1 at €8.3bn Market Environment • Order backlog at €87bn • Improving boundary conditions • Reven
Slide 5: SGRE – strategic
1 Wind market offers attractive long term growth potential SGRE – strategic • • Significant increase in demand for onshore and offshore Capitalization on service opportunity imperative on wind power remains unchanged 2 Internal and external Challenges • Supply chain constraints • 5.X ramp-up challen
Slide 6: More and more government initiatives accelerate the energy transition
Version 18 More and more government initiatives accelerate the energy transition UNITED KINGDOM UNITED STATES Carbon budget 6 and industrial Infrastructure bills with focus on greening decarbonization strategy the US economy GERMANY CHINA Coalition agreement on “3060” goals - national climate protec
Slide 7: Three pillars underpinning our strategy
Three pillars underpinning our strategy Low- or zero-emission Transport and storage Reducing the CO2 footprint & energy power generation of energy consumption in Industrial processes Analyst Call | Q1 FY22 7 2022-02-09 Unrestricted © Siemens Energy, 2022
Slide 8: Q1 FY22 awards and milestones already reflect the energy transition
Version 18 Q1 FY22 awards and milestones already reflect the energy transition Reducing the CO2 footprint & Low- or zero-emission Transport and storage energy consumption in power generation of energy industrial processes Picture to be replaced Coal to gas Elimination of emissions in First H2 Co-fir
Slide 9: Well on track to become a sustainability leader in our industry
Version 18 Well on track to become a sustainability leader in our industry Earlier Target Achievement Increased ambitions for Siemens Energy’s own business activities – reduction targets to be achieved 5 years earlier than planned (Scope 1 & 2) Greater Transparency Scope 3 emissions of GP reporting
Slide 10: CFO section
CFO section Maria Ferraro, CFO Analyst Call | Q1 FY22 10 2022-02-09 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 11: 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 12: Siemens Energy Group: Strong order intake results in record order backlog
Siemens Energy Group: Strong order intake results in record order backlog Q1 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +12% / 10%1 8.3 7.4 (9)% / (11)%1 n/a 6.5 6.0 366 2.1 2.2 2% 4.4 3.8 (14)% (63) 5.6% (1.1)% Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Services New Uni
Slide 13: Siemens Energy Group: SGRE weighs on performance
Siemens Energy Group: SGRE weighs on performance Q1 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +12% / +10%1 10.5 (9)% / (11)%1 n/a 9.1 366 8.3 8.2 7.4 7.3 288 5.9 6.5 6.5 6.0 54 (46) (63) (1.2)% 5.6% +2.9% 4.4% 0.7% (46) (0.6)% (63) (1.1)% Q1 FY21 Q2 Q3 Q4 Q1 FY22 Q1 FY21 Q2
Slide 14: Net Cash Position remains strong
Net Cash Position remains strong Net cash / (Net debt) as of December 31, 2021 (in €m) 5,166 5,262 Solid investment grade 96 S&P: BBB outlook stable (2,974) FY22 expected cash-out 2,099 (190) • Dividend payment (c.€70m) (836) • Restructuring (>€200m) 1,172 (91) • Non carve-out countries (>€200m) Cas
Slide 15: Gas and Power: Very solid start to the year
Gas and Power1: Very solid start to the year Q1 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +14% / +12%2 5.9 (4)% / (6)%2 (10)% 5.2 4.3 4.1 268 242 1.8 1.8 1% 2.5 (5)% 2.4 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 6.2% 5.8% Services New Unit Q1 FY21 Q1 FY22 Order Backlog3 Book-to-Bill R
Slide 16: Gas and Power: Solid orders, EBITA before SI and free cash flow
Gas and Power1: Solid orders, EBITA before SI and free cash flow Q1 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +14% / +12%2 (4)% / (6)%2 6.2 5.9 (10)% 5.2 5.0 5.4 268 4.5 4.3 4.6 225 242 4.2 4.1 188 153 6.2% 4.5% 4.9% 2.9% 5.8% Q1 FY21 Q2 Q3 Q4 Q1 FY22 Q1 FY21 Q2 Q3 Q4 Q1 FY2
Slide 17: Financial Priorities for FY22
Financial 1 Focus on cost out programs to ensure sustainable cost savings Priorities for FY22 2 Tight management of net working capital 3 More transparency Analyst Call | Q1 FY22 17 2022-02-09 Unrestricted © Siemens Energy, 2022
Slide 18: Financial outlook and framework
Financial outlook and framework Actuals Profit forecast Mid-term target FY20 FY21 FY21 FY22 FY23 Revenue €18.1bn €18.4bn Gas and Power 2%-6% 1%-5% % Change y-o-y2 (3.1)% 1.5% Adj. EBITA before Special Items €254m €849m 3.5%-5.5% 4.5%-6.5% 6%-8% % Margin before Special Items 1.4% 4.6% Restructuring c
Slide 19: Management Priorities for FY22
1 Deliver on the fundamentals at GP and 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 | Q1 FY22 19 2022-02-09 Unrestric
Slide 20: 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 21: Questions & Answers
Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q1 FY22 21 2022-02-09 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 22: Financial Calendar and Contact Investor Relations
Financial Calendar 2022 Feb 09 Feb 24 May 11 May 23-24 Aug 8 Q1 FY22 Annual General Q2 FY22 Capital Markets Q3 FY22 Meeting Day Contact Investor Relations Michael Hagmann Tobias Hang Harald Albrecht Head of Investor Relations tobias.hang@siemens-energy.com albrecht.harald@siemens-energy.com michael.
Slide 23: Appendix
Appendix Analyst Call | Q1 FY22 23 2022-02-09 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022
Slide 24: Special Items
Special Items Reconciliation of Adj. EBITA before Special Items In €m Q1 FY21 Q1 FY22 Gas and Power Gas and Power1 • Personal Restructuring costs (severance) Adj. EBITA before Special Items 268 242 Takes into account further progress on existing Restructuring and integration costs 4 (9) programs and
Slide 25: Net Income Transition
Net Income Transition Siemens Energy In €m Q1 FY21 Q1 FY22 193 259 Financial result Gas and Power Impacted by interest expenses and currency effects SGRE 71 (318) Reconciliation to Siemens Energy (21) 2 Tax Adj. EBITA 243 (57) €69m income tax expenses which include effects from the non-recognition o
Slide 26: Cash Flow Statement
Cash Flow Statement Siemens Energy In €m Q1 FY21 Q1 FY22 Net income 99 (240) CAPEX Amortization, depreciation and impairments 343 335 Change in operating net working capital • Decrease by €14m y-o-y driven by both segments Contract assets (206) 267 Free Cash Flow pre tax Inventories (64) (744) • GP:
Slide 27: Nominal versus comparable growth rates
Nominal versus comparable growth rates Siemens Energy In €m Q1 FY21 Q1 FY22 % nominal % comparable1 Gas and Power2 5,166 5,890 14.0 11.7 SGRE 2,281 2,472 8.4 7.1 Reconciliation to Siemens Energy (15) (32) Total Orders 7,432 8,330 12.1 10.1 Gas and Power2 4,292 4,140 (3.6) (5.9) SGRE 2,295 1,829 (20.
Slide 28: Disaggregation of revenue
Disaggregation of revenue Siemens Energy In €m Q1 FY21 Q1 FY22 % change Types of activities in Gas and Power New units 2,499 2,366 (5.3) Service contracts 1,746 1,760 0.8 Types of business in SGRE Wind turbines 1,900 1,400 (26.3) Operation and maintenance 395 429 8.6 Types of business in Gas and Pow
Slide 29: Gas and Power: Development by businesses Q1 FY22
Version 18 Gas and Power: Development by businesses Q1 FY22 in % nom. y-o-y Q1 FY22 Gas and Power +++ Order Generation +++ Grading system growth Industrial Applications +++ >10% +++ 5% - 10% ++ Transmission ++ 0% - 5% + Gas and Power - 0% - (5)% (5)% - (10)% - -- > (10)% --- Revenue Generation -- gr
Slide 30: 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 restatement 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 restatem
Slide 31: 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 restatement 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 restatement
Slide 32: Profit and Loss Statement (I)
Profit and Loss Statement (I) Siemens Energy In €m Q1 FY21 Q1 FY22 Revenue 6,541 5,956 Cost of sales (5,538) (5,234) Gross profit 1,002 722 Gross profit margin 15.3% 12.1% Research and development expenses (236) (226) R&D as percentage of revenue (3.6)% (3.8)% Selling and general administrative expe
Slide 33: Profit and Loss Statement (II)
Profit and Loss Statement (II) Siemens Energy In €m Q1 FY21 Q1 FY22 Gas and Power1 4,292 4,140 SGRE 2,295 1,829 Reconciliation to Siemens Energy (47) (13) Total Revenue 6,541 5,956 Gas and Power1 268 242 SGRE 118 (307) Reconciliation to Siemens Energy (20) 2 Adj. EBITA before Special Items 366 (63)
Slide 34: Statement of Financial Position
Statement of Financial Position Siemens Energy In €m Sep. 30, 2021 Dec. 31, 2021 Goodwill and other intangible assets 13,099 13,208 Property, plant and equipment and other non-current assets 7,645 7,669 Inventories 6,146 6,938 Trade and other receivables 5,110 5,173 Contract assets 4,913 4,700 Cash
Slide 35: Profit Bridge from SGRE to SE disclosure Q1 FY22
Profit Bridge from SGRE to SE disclosure Q1 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