Siemens Energy Ag · XETR:ENR
Siemens Energy — Investor Day (September 2020)
19 slides from Siemens Energy's investor day presentation, Sep 1, 2020
Slide 1: Capital Market Day 2020 – Operational Excellence Section
Capital Market Day 2020 Operational Excellence Section Jochen Eickholt, Member of the Executive Board of Siemens Energy Siemens Energy is a registered trademark licensed by Siemens AG. © Siemens Energy, 2020
Slide 2: Notes and forward-looking statements (I)
Notes and forward-looking statements (I) This presentation and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy or subscribe for any securities of Siemens AG or Siemens Energy AG. This prese
Slide 3: Notes and forward-looking statements (II)
Notes and forward-looking statements (II) This presentation contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management of Siemens AG and Siemens Energy AG. Forward-looking statements involve known and unknown risk
Slide 4: Our Management Team – What we stand for
Our Management Team What we stand for Jochen Eickholt Member of the Executive Board Better performance through Operational Excellence CMD | J. Eickholt | Operational Excellence 4 2020-09-01 © Siemens Energy, 2020
Slide 5: For us, Operational Excellence means driving profitability, cash flow, revenue
For us, Operational Excellence means driving … … profitability Footprint consolidation. Project management and supply chain excellence. Simplification and selectivity. … cash flow Inventory reduction. Cash conversion focus. … revenue Getting closer to our customers. Winning better business. Clear co
Slide 6: Next level performance focus Operational Excellence
Next level performance focus Operational Excellence Gas and Power: Annual gross cost savings by FY23 PG2020 and GP2020+1 Accelerating Impact Realized savings ~€500 m Operational Offset by lower Excellence business volume Savings to come >€500 m Full impact on bottom line Already identified >€300 m €
Slide 7: Transforming Siemens Energy: A step change in Operational Excellence
Transforming Siemens Energy A step change in Operational Excellence Reshaping our footprint Less complex, more agile and flexible Portfolio streamlining Leaner, simpler product line-up Project excellence Better execution, be selective Supply chain excellence Efficient and better sourcing Sustainable
Slide 8: Our footprint is too complex – Too many sites
Our footprint is too complex Too many sites Global footprint Sites CAN DEU GBR NOR SWE CZE HUN BUL HRV ROU ALG 104 Sites globally1 AUT FRA ITA NDL SPA POR 75 Manufacturing1 USA 89 Sales and Execution, Engineering2 RUS 73 Service3 CHN 15 R&D centers1 UZB IND MEX VEN EGY SAU BRA KOR SGP Best-cost coun
Slide 9: Ending “product tourism”
Ending “product tourism” Production setup of exemplary gas turbine package 4 2 Kongsberg Turbine package engineering Finspang 2 Turbine package Montreal 3 Duisburg 3B 3A 1 Turbine 1 4 A. Compressor, Houston Rogerville B. Compressor Compressor package package String Test engineering 5 Customer site •
Slide 10: How we will reshape our footprint
How we will reshape our footprint Simpler footprint and logistics with lower complexity and fewer sites Factory network optimization to eliminate overcapacities Lower … Completion of Dresser-Rand … cost for personnel, real estate, integration on product side logistics and inventory levels Expansion
Slide 11: Portfolio streamlining – Leaner, simpler product line-up
Portfolio streamlining Leaner, simpler product line-up Generation Industrial Applications Transmission • Large rotating equipment: • Aeroderivative Gas Turbine: • Focus on leading line-up Review options to exit coal Streamlining offering1 of SF6-free and grid-stability products paying off • Focus on
Slide 12: Rigorous focus on project excellence
Rigorous focus on project excellence Be selective: No more “must wins” Better execution • Enforce selective bidding – better risk/return ratio • Clear customer focus – stringent requirements management • Systematic pre-bid confidence checks – • Systematic risk management with early warning system co
Slide 13: Better portfolio analytics and systematic risk management
Better portfolio analytics and systematic risk management New unified project management and selection system Successfully applied in Mobility Siemens Mobility NCCs Project database (55)% big data Better project >2,700 running projects currently1 selection empirical-based decision making 2013 2019 C
Slide 14: Supply chain excellence
Supply chain excellence Buying from the best Today Our aspiration • Decentralized procurement (former GP organization) • Best-in-class procurement • Global value sourcing below industry standard • Significant material cost savings • Limited cross-functional collaboration • Partner ecosystem • Innova
Slide 15: Sustainable inventory reduction
Sustainable inventory reduction From prevention to an effective solution Advance Complexity reduction – Professional variants Payments management (optimize variant trees, modularization) Receivables/ Payables Contract Sales excellence – Better management of Assets/Liabilities customer demand, more p
Slide 16: Getting closer to our customers
Getting closer to our customers Winning better business Key measures Improved bid hit rate to win … • Intensified key account management • Differentiated offering (digitalization, decarbonization, decentralization) • More global business – … more business Expand Asian footprint (currently 18%) • Pub
Slide 17: Innovation example: Additive Manufacturing
Innovation example: Additive Manufacturing Leading development Serving 60+ >10 years and industry internal and printers globally with factory space additive manufacturing user experience partnerships external for up to 100 printers markets Sweden UK + User Service provider CMD | J. Eickholt | Operat
Slide 18: Additive Manufacturing contributes to our topline, profitability, cash
Additive Manufacturing contributes to our… … topline … profitability … cash Better performance Faster development Lower cost Lower inventory • Up to +1 pp efficiency1 • 75% reduction of • Economical production • Inventory reduction • +50% longer lifetime2 development time of small volumes • Up to 50
Slide 19: Defined measures – Step change to more and better business
Operational Defined measures … Excellence Reshaping our footprint Supply chain excellence Step change to Sustainable inventory more and better Portfolio streamlining reduction business Getting closer to Project excellence our customers Our FY23 targets … and a reinvigorated team 6-8% 1-revenue • End