Siemens Energy Ag · XETR:ENR
Siemens Energy — Siemens Gamesa Renewable Energy — Investor Day (November 2023)
16 slides from Siemens Energy's investor day presentation, Nov 21, 2023
Slide 1: Siemens Gamesa CMD 2023
CMD 2023 Siemens Gamesa Jochen Eickholt Chief Executive Officer © Siemens Gamesa Renewable Energy, 2023 | Jochen Eickholt
Slide 2: Disclaimer
DISCLAIMER “This material has been prepared by Siemens Gamesa Renewable Energy and is disclosed solely for information purposes. This document contains declarations which constitute forward-looking statements, and includes references to our current intentions, beliefs or expectations regarding futur
Slide 3: Siemens Gamesa – a core player in the energy transition for more than 40 years
Siemens Gamesa – a core player in the energy transition for more than 40 years Siemens Gamesa revenue1 €16.8bn 23% Service order entry1 €2.1bn €9.1bn Onshore and Offshore ~4,600 offshore and ~59,600 77% €7.0bn onshore turbines installed2 Siemens Gamesa + >137 GW installed2 backlog2 in ~80 countries
Slide 4: Market growth supporting Siemens Gamesa's turnaround
Market growth supporting Siemens Gamesa’s turnaround Annual new installations at global level excluding China (in GW installed) • Solid growth expected globally, backed by clean energy policies, with +9% CAGR until 2030 98 • Wind power to play a central role as critical infrastructure for global ene
Slide 5: Challenges impacting Siemens Gamesa
Challenges impacting Siemens Gamesa Despite the significant price improvements we achieved in recent quarters, Revenue composition Price (in %, estimate) unsustainable competition among wind turbine manufacturers in recent years level has resulted in market pricing below healthy levels Cost Signific
Slide 6: Siemens Gamesa's initial measures over the past months
Siemens Gamesa’s initial measures over the past 18 months Selective and New operating de-risked sales model • Increased pricing and project • Streamlined organization selectivity (e.g. +20% price in • Empowered technical and Offshore) operational functions with • Rebalanced risk in terms and new COO
Slide 7: Siemens Gamesa's Masterplan going forward
Siemens Gamesa’s Masterplan going forward • Focus on Siemens Gamesa 5.X as mainstream platform • Implement corrective measures for quality issues in fleet and backlog 1 Fix Onshore • Ensure restart of sales at low risk • Narrow focus only to attractive markets • Deliver demand growth profitably 2 De
Slide 8: Onshore: Systematic response to product quality issues by Quality Task Force
1 | Onshore Systematic response to product quality issues by Quality Task Force What went wrong Response: The Quality Task Force Technology Deficiencies in deployed fleet of 4.X and 5.X • Analysis of priority-one deficiencies completed • Material-related e.g. bearing components • Development of shor
Slide 9: Onshore: Narrow focus only to attractive markets
1 | Onshore Narrow focus only to attractive markets Europe as core market Market success criteria for Siemens Gamesa for Siemens Gamesa Stable regulatory framework Attractive framework (EU Wind Power Package) Attractive profit pool/financial return Level playing field market Value-based customer lan
Slide 10: Offshore: Focus on delivering according to plan
2 | Offshore Focus on delivering according to plan Offshore manufacturing ramp-up plan defined for all plants Offshore installation volume Baseline: 2020 =100 Cuxhaven: Nacelles Aalborg: Blades Le Havre: >3.5x Blades and nacelles Brande: Nacelles Hull: Blades Taichung: Nacelles >2x Dedicated cross-f
Slide 11: Secure ramp-up in manufacturing plants to meet demand increase (example: Cuxhaven)
2 | Offshore Secure ramp-up in manufacturing plants to meet demand increase (example: Cuxhaven) Cuxhaven nacelle plant Key measures to secure ramp-up Earlier hiring and advanced training program for new hires on shop floor Manufacturing stability via strict engineering change management Warehouse b
Slide 12: Offshore: Implement cost-out program to achieve productivity targets
2 | Offshore Implement cost-out program to achieve productivity targets Dedicated cost-out Examples of identified measures for the program launched SG 14-222 DD and SG 14-236 DD (non-exhaustive) Cross-functional team with >200 specialists deployed 1 Value improvement Upsell of power curve updates Ta
Slide 13: Service back to target profitability following Siemens Gamesa 4.X and 5.X issues
3 | Service Service back to target profitability following Siemens Gamesa 4.X and 5.X issues De-risk top line Streamline operations Strengthen focus on aftermarket • Rebalance risk and return through improved • Continuously improve productivity • Refocus growth towards spare parts, repairs terms and
Slide 14: Ensure healthy order intake applying strict selectivity
4 | Order intake Ensure healthy order intake applying strict selectivity Commercial selectivity Contractual terms and conditions Improve profitability of new orders Increase prices Disciplined bidding, with strict hurdle rates to ensure health Progressive price increase in customer contracts of new
Slide 15: Reinforce operations, focusing on core and securing technology roadmap
5 | Operations Reinforce operations, focusing on core and securing technology roadmap Establish optimal Simplify technology Secure new product Optimize footprint Focus on core structure portfolio introduction Adjust capacity Rebalance make- Reduce structural costs Prioritize and Project-centric for
Slide 16: FY26: Siemens Gamesa break-even
Plan to return to profitability Secure Onshore product quality and focus on attractive markets Address ramp-up and cost-out in Offshore FY26: Return Service to target profitability level Siemens Gamesa Ensure healthy order intake across businesses break-even Achieve operational excellence to execute
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