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: CFO Section
CMD 2023 CFO Section Maria Ferraro Chief Financial Officer Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023 | Maria Ferraro | CFO Section
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: Strategic priorities: Deliver, Fix, Maintain
Deliver Fix Maintain on profitable growth the wind business solid financial foundations Strategic priorities to create sustainable shareholder value 2023-11-21 © Siemens Energy, 2023 | Maria Ferraro | CFO Section 3
Slide 4: Challenging fiscal 2023 with overall disappointing result
Challenging fiscal 2023 with overall disappointing result … Orders Net income Adj. (net debt) / net cash (in €bn) (in €bn) (in €bn) 1.3 (0.9) 0.1 0.2 0.6 1.0 1.4 1.5 0.8 50.4 2.5 2.4 2.1 38.3 (0.6) (0.7) 34.0 33.0 (1.9) (4.6) (0.8) FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Book-to-
Slide 5: Excellent performance of former GP businesses
… however, excellent performance of former GP businesses and improved mid-term expectations Gas Services Grid Technologies Transformation of Industry Revenue growth Flat Low double digit High single digit Profit margin before SI1 10 – 12% 9 – 11% 9 – 11% 9.5% 7 – 9% 7 – 9% 7.5% 6.3% 6.5% 6.3% 5 – 7%
Slide 6: Delivering on our commitments – successful turnaround of former GP businesses
Delivering on our commitments – successful turnaround of former GP businesses supported by implemented measures and streamlined organization Accelerated impact program (AIP) Siemens Gamesa integration synergies • Resizing capacities and function optimization ~€0.3bn (~5,000 headcounts reduced) ~10%
Slide 7: Order backlog as a source of strength and resilience
Order backlog as a source of strength and resilience for former GP businesses and providing visibility on path forward for Siemens Gamesa Order backlog Backlog project margin (in €bn) ~90% ~60% 112 +2pp GS 97 51%1 Resilient service share +2pp TI 29 60 +3pp GT • Selective growth strategy and 23 opera
Slide 8: Strong but selective growth: increasing investment requirements pre-financed
Strong but selective growth: Increasing investment requirements pre- financed through strong orders and selective capital expenditures Volume Operating working capital Capital expenditures (in €bn) (in €bn) (in % of revenue) 0.5 50 4.0% 3.9% 38 3.5% 33 31 (1.1) 28 29 Orders Revenue (2.6) FY21 FY22 F
Slide 9: Mid-term free cash flow will be impacted by normalization of provision levels
Mid-term free cash flow will be impacted by the normalization of provision levels Siemens Energy provisions1 Siemens Energy free cash flow pre-tax (in €bn) Warranty Onerous loss (in €bn) ∑ €5 – 6bn FY21 0.9 2.6 3.5 ∑ €1 – 2bn 1.5 FY22 1.1 2.4 3.5 1.4 +1.3 FY23 1.8 3.0 4.8 0.8 Short-term quality cash
Slide 10: Commitment to a prudent financial policy consistent with investment grade
Commitment to a prudent financial policy consistent with an investment grade credit profile, net cash position in FY24 Expected net cash / (net debt) development FY24 (in €bn) Net cash Investment grade credit profile • Strong balance sheet with targeted net cash position in FY24 (0.8) • Return to st
Slide 11: Siemens Gamesa: path to break-even in FY26
Siemens Gamesa: Execution of legacy backlog and defined improvement measures will pave the way to break-even in FY26 Siemens Gamesa backlog Improvement measures Profit before special items Backlog project margins Project margin as % of revenue (in €bn) Onshore: Low single digit • Fix quality issues
Slide 12: Prudent long-term targets enabling profitable growth with resilience
Prudent long-term targets enabling profitable growth with resilience Siemens Energy targets FY28 Capital Capital Dividend Growth Profit efficiency structure policy Revenue CAGR1 Margin as reported2 Return on Capital Employed3 Adj. Net Debt4/EBITDA Dividend Payout Ratio5 Mid single digit ≥8% >15% Inv
Slide 13: Key messages
Key messages Excellent turnaround track-record and upgraded margin Deliver expectations for our former GP businesses on profitable growth Continuous strong demand driven by energy transition acts as a catalyst for profitable growth Defined path and action plan to reach break even Fix at Siemens Game
Slide 14: Backup
Backup © Siemens Energy, 2023 | Maria Ferraro | CFO Section
Slide 15: Financial framework: a long-term plan for value creation
Financial framework A long-term plan for value creation FY24 guidance and FY26 targets Group targets FY28 FY24 guidance FY26 targets Revenue Profit margin Revenue Margin MSD Revenue CAGR4 growth3 before SI1 CAGR4 reported1 Gas Services (4) – 0% 9 – 11% Flat 10 – 12% ≥8% Profit margin1 Grid Technolog