Siemens Energy Ag · XETR:ENR
Siemens Energy — Investor Day (November 2023)
15 slides from Siemens Energy's investor day presentation, Nov 21, 2023
Slide 1: Global Functions
CMD 2023 Global Functions Vinod Philip Member of the Executive Board Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023 | Vinod Philip | Global Functions
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: Introducing Global Functions
Introducing Global Functions Delivering value through Execution, Digitalization and Innovation Supporting the growth through project execution capabilities and supply chain management ramp-up Global Functions Combining AI and process automation with domain Combining people, know-how to improve busin
Slide 4: Supporting growth and profitability across all business areas
Global Functions Supporting growth and profitability across all business areas • Project execution resources and capabilities deployed across business areas • Group-wide services and infrastructure through IT, logistics and procurement • Anchor point for future technologies through the four innovati
Slide 5: Project Entity as a key differentiator
Execution Project Entity as a key differentiator Project Entity supports the business in: 104 Projects in execution by Project Entity1 30% Tendering Project execution Warranty 10% TI +16% 60% GT • Central execution of complex, large-scale projects across all BAs • Standardized tools and processes fo
Slide 6: Building a resilient procurement and logistics network to support the growth in the business areas
Execution Building a resilient procurement and logistics network to support the growth in the business areas Supply Chain Resilience Achievements FY23 Bundled spending 6 levers Increase share of procurement spend with to succeed against market constraints +6% selected set of strategic suppliers 01 S
Slide 7: Producing tangible savings via stringent procurement processes
Execution Producing tangible savings via stringent procurement processes Good progress made in driving Cost Value Engineering framework bottom-line impact being implemented Overall target Target cost Market price Final product cost breakdown effects Cost Value Engineering cost Purchase price change
Slide 8: Digital products bringing tangible savings for our customers
Digitalization Digital products bringing tangible savings for our customers Optimized powerplant operations example Software defined, AI-powered solutions Cloud-based digital products • Thermodynamic model based on machine learning algorithms • Real time evaluation of actual power plant start-up con
Slide 9: Siemens Energy's ERP landscape
Digitalization Company-wide project launched to standardize and streamline Siemens Energy’s ERP landscape 23 different legacy SAP systems used at Siemens Energy post spin-off ~€0.3bn Financial transparency based on investment in harmonized single data source ERP systems Simplification and automation
Slide 10: Process modelling, automation and optimization to improve factory network performance
Digitalization Process modelling, automation and optimization to improve factory network performance Smart factory network enabled by people, processes and digitalization Business process optimization Senior leaders (GPOs1) driving Factory ~30 harmonized, data-driven processes Digital Twin Process d
Slide 11: Delivered on our CMD 2022 key targets
Innovation Delivered on our CMD 2022 key targets >€1bn across the business areas and future Fields of Action ~45% related to service1 ~30% invested in future technologies R&D allocation Innovation Centers and products New R&D allocation approach implemented All Innovation Centers inaugurated and acr
Slide 12: Investing into the future while addressing customers' needs of today
Innovation Investing into the future while addressing customers' needs of today Current deployments Mid-term deployments Long-term developments • Modification and upgrades • >50 vol-% H2 in LGT2 • Inductive electric heaters of Gas Turbines • NextGen H2 compression at MW-scale • SF6-free switchgear •
Slide 13: Strong focus placed on delivering synergies during Siemens Gamesa integration
Siemens Gamesa synergies Strong focus placed on delivering synergies during Siemens Gamesa integration Synergies allocated roughly equally to SE and SG Top 4 direct commodities with joint purchasing volume between SE and SG €0.3bn ~€20bn 20% ~45% of joint purchasing ~10% volume between SE and ~40% S
Slide 14: Sustained financial benefits will continue to be delivered by Global Functions
In a nutshell Sustained financial benefits will continue to be delivered by Global Functions Key Achievements Priorities FY24 FY23 ~€400m • Financial Impact: Secure saving potentials and SCM savings accelerate integration of Siemens Gamesa processes • Growth: Support business growth via central proj
Slide 15: Global Functions organizational set-up
Backup Global Functions organizational set-up Global Functions Execution Project Procurement Health Gas Enabling our business to face a fast and Services Execution & Logistics & Safety increasingly complex environment Grid Technologies Digitalization Cybersecurity Software Data, Analytics Digitizing