Siemens Energy Ag · XETR:ENR

Siemens Energy — Q4 FY2022 Earnings Presentation

40 slides from Siemens Energy's earnings presentation, Nov 16, 2022

  1. Slide 1: Siemens Energy strengthened business in challenging year – SGRE integration now the focus

    Siemens Energy strengthened business in challenging year – integration of Siemens Gamesa Renewable Energy (SGRE) is now the focus Christian Bruch, President and CEO Siemens Energy Maria Ferraro, CFO Siemens Energy Analyst presentation Q4 FY22 and FY22 Munich, November 16, 2022 Siemens Energy is a tr

  2. 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

  3. Slide 3: CEO section

    CEO section Christian Bruch, CEO Analyst Call | Q4 FY22 3 2022-11-16 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022

  4. Slide 4: Key Messages

    Key Messages Highlights / Lowlights • New group structure (effective October 1, 2022) • CTO: €960m raised by MCB, acceptance period in progress Q4 FY22 Financial Performance • Russia: Restructuring of business activities largely finalized • Orders: +27.4% comp.1 at €12.2bn • GP continued to deliver

  5. Slide 5: SE proceeds to second stage of company transformation

    Version 18 SE proceeds to second stage of company transformation within an environment that provides challenges and opportunities Nov 2021 Dec 2021 Feb 2022 Mar 2022 Aug 2022 COP26 Zero-Covid strategy Start of RePowerEU US Inflation China continues War in Ukraine Act Reduction Act 24.02.2022 01.03.2

  6. Slide 6: New group structure increases customer focus, transparency and accountability

    New group structure increases customer focus, transparency and accountability… Siemens Energy Reporting Segments SE Executive Board Gas Grid Transformation Global CEO CFO SGRE Services Technologies of Industry Functions Anne-Laure de Christian Bruch Maria Ferraro Karim Amin Tim Holt Vinod Philip Joc

  7. Slide 7: Mistral program to stabilize business and unlock potential of SGRE

    Mistral program to stabilize business and unlock potential of SGRE Market environment • Short term market conditions remain challenging • Long-term demand outlook remains favorable: Wind capacity additions to double by 20301 • Major root causes for poor profitability such as Root causes for underper

  8. Slide 8: Q4 FY22 awards and milestones

    Version 18 Q4 FY22 awards and milestones Power generation with low Transport and storage Reducing the CO2 footprint & or zero emissions of energy energy consumption in industrial processes Coal to gas shift with hydrogen TenneT commissioned SE to NFPS Offshore Compression capability for EnBW AG stab

  9. Slide 9: Siemens Energy recognized for transparency in ESG performance

    Siemens Energy recognized for transparency in ESG performance demonstrated by rating improvements vs. previous year #7 of 218 in industry, low risk rating 16.5 (17.4) Disclosures B (on a scale of A to D) provide transparency Next update in Dec. B- prime (1st Sustainability Report decile rank in indu

  10. Slide 10: CFO section

    CFO section Maria Ferraro, CFO Analyst Call | Q4 FY22 10 2022-11-16 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022

  11. Slide 11: Status quo of the voluntary cash tender offer with intention to delist SGRE

    Status quo of the voluntary cash tender offer with intention to delist SGRE • CNMV approval obtained Nov 7th Tentative timeline Current status 21 May 2022 • Acceptance period in progress (until Dec 13th ) Public offer announcement • Funding requirement driven by tender offer 7 Nov 2022 Approval by C

  12. Slide 12: GP continues to deliver, SGRE benefits from sale of assets Q4 FY22

    Siemens Energy: GP continues to deliver, SGRE benefits from sale of assets Q4 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +34% / +27% +12% / +6%1 (0.6)% (1.1)% (0.3)% (1.8)% 6.5% 12.2 9.2 n/a 9.8 8.2 9.1 7.3 8.3 7.9 6.6 594 6.0 (46) (63) (21) (131) Q4 FY21 Q1 Q2 Q3 Q4 FY22 Q4

  13. Slide 13: Siemens Energy at a glance FY22

    Siemens Energy at a glance FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) 2.3% 1.3% +16% / +12%1 +2% / (3)%1 (43)% 38.3 33.0 28.5 29.0 661 9.4 10.1 +7% 379 19.1 18.9 (1)% FY21 FY22 FY21 FY22 FY21 FY22 Service New Unit Order Backlog2 Book-to-Bill Ratio Free Cash Flow3 €97bn 1.32 €

  14. Slide 14: Net cash position improved to €2.8bn

    Net cash position improved to €2.8bn Net cash/(Net debt) as of September 30, 2022 (in €m) 5,959 6,066 107 SGRE: €(2.5)bn SE excl. SGRE: €(0.8)bn (3,224) 2,827 2,180 (15) (570) (77) Cash and cash Receivables from Total Long- and short- Payables to Net cash/ Pension Credit Adjusted Net equivalents Sie

  15. Slide 15: Gas and Power: Strong development across all KPIs Q4 FY22

    Gas and Power1: Strong development across all KPIs Q4 FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +27% / +21%² 2.9% 5.8% 6.0% 4.4% 3.8% +9% / +2%² 7.9 +46% 6.7 6.4 5.8 6.2 5.9 5.4 4.9 266 4.1 4.4 242 212 223 153 Q4 FY21 Q1 Q2 Q3 Q4 FY22 Q4 FY21 Q1 Q2 Q3 Q4 FY22 Q4 FY21 Q1 Q2 Q

  16. Slide 16: Gas and Power at a glance FY22

    Gas and Power at a glance FY22 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) 4.5% 4.9% +29% / +24%1 +13% +5% / 0%1 26.9 943 18.4 19.3 834 20.9 7.5 7.9 +6% 10.8 11.3 +4% FY21 FY22 FY21 FY22 FY21 FY22 Service2 New Unit2 Order Backlog3 Book-to-Bill Ratio Free Cash Flow4 €63bn 1.39 €2.4b

  17. Slide 17: Increasing order backlog with better margin profile

    Increasing order backlog with better margin profile Gas and Power (GP) order backlog (€bn) Improved business +29% foundation Book-to-Bill 63 Backlog covering ~ 3x annual revenue FY22 51 GP 1.39 48 Strong increase across all businesses 38 Services Average backlog margin up in both New G 1.20 Units an

  18. Slide 18: FY22 Guidance recap

    FY22 Guidance recap FY22 Guidance FY22 Actuals excl. Russia Siemens Revenue growth1 of (2)% – 3%2 (2.5)%1 (1.2)%2 Energy (low end of the range) Adj. EBITA Margin before Special Items of 2% – 4% 1.3% ~ 1.8% (low end of the range) Gas and Revenue growth1 of 1% – 5%2 0.2%1 2.2%2 Power (low end of the r

  19. Slide 19: The new reporting transparency going forward

    The new reporting transparency going forward Order Profit FCF New Units/ Regular Reporting Orders Backlog Revenue Profit1 before SI pre tax EBITDA Service Split2 Siemens Energy ● ● ● ● ● ● ● ● Gas Services ● ● ● ● ● ● ● ● Grid Technologies ● ● ● ● ● ● ● ● Transformation of Industry ● ● ● ● ● ● ● ● S

  20. Slide 20: Existing headwinds Defending our margin targets

    Existing headwinds Defending our margin targets Rising inflation increases gross cost Resilient business mix incl. >40% service share with effective cost indexation • Broad based inflation in wages, external services and energy cost, in addition to high material and logistic costs Risk and project m

  21. Slide 21: Financial Outlook FY23

    Financial Outlook FY23 FY 2023 Siemens Energy Outlook FY 2023 Business Area Assumptions Revenue Profit Margin Growth1 before SI Revenue Growth1 3 – 7% Gas Services 0 – 4% 9 – 11% GP Profit Margin before SI 2 – 4% Grid Technologies 5 – 9% 6 – 8% ∑ 6 – 8% We expect a sharp reduction of Net loss compar

  22. Slide 22: Key Priorities

    1 Deliver on FY23 targets Key Priorities 2 Leverage new operating model 3 SGRE turnaround and integration / alignment 4 Capitalize on market opportunities Analyst Call | Q4 FY22 22 2022-11-16 Unrestricted © Siemens Energy, 2022

  23. Slide 23: We energize society

    Oktober 2022 We energize society © Siemens Energy, 2022

  24. Slide 24: Questions & Answers

    Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q4 FY22 24 2022-11-16 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022

  25. Slide 25: Financial Calendar Contact Investor Relations

    Financial Calendar 2022 2023 Nov 16 Feb 7 May 15 Aug 7 Nov 15 Q4 FY22 Q1 FY23 & AGM Q2 FY23 Q3 FY23 Q4 FY23 Contact Investor Relations Michael Hagmann Tobias Hang Harald Albrecht tobias.hang@siemens-energy.com Head of Investor Relations albrecht.harald@siemens-energy.com +49 172 5744423 michael.hagm

  26. Slide 26: Appendix

    Appendix Analyst Call | Q4 FY22 26 2022-11-16 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2022

  27. Slide 27: FY23 financial considerations for SE

    FY23 financial considerations for SE Reconciliation line on Profit ~ neg. €200m before Special Items Financial result ~ neg. €150m Extraordinary cash-outs for ~ €450m non carve-out countries Savings from cost-out program ~ €250m in SE w/o SGRE Special Items in SE w/o SGRE ~ neg. €100m PPA in SE w/o

  28. Slide 28: Comparable key figures for the new organizational set up: Orders

    Comparable key figures for the new organizational set up Orders Orders (in €m) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 FY21 Gas Service 2,952 3,635 2,612 2,615 11,813 10,291 Grid Technologies 1,910 2,015 2,660 3,831 10,416 7,260 Transformation of Industry 1,403 1,414 1,217 1,617 5,650 4,007 therein Sus

  29. Slide 29: Comparable key figures for the new organizational set up: Revenue

    Comparable key figures for the new organizational set up Revenue Revenue (in €m) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 FY21 Gas Service 2,037 2,281 2,375 2,801 9,493 9,141 Grid Technologies 1,323 1,385 1,589 1,989 6,285 5,814 Transformation of Industry 849 964 1,014 1,252 4,078 3,889 therein Sustaina

  30. Slide 30: Comparable key figures: Profit before Special Items (margin)

    Comparable key figures for the new organizational set up Profit before Special Items (margin) (in €m) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 FY21 Profit Profit Profit Profit Profit Profit % % % % % % bef. SI bef. SI bef. SI bef. SI bef. SI bef. SI Gas Service 178 8.8% 182 8.0% 182 7.7% 138 4.9% 680 7.

  31. Slide 31: Special Items

    Special Items Reconciliation of Adj. EBITA before Special Items In €m Q4 FY21 Q4 FY22 FY21 FY22 Gas and Power Gas and Power1 • Personal Restructuring costs (severance) Adj. EBITA before Special Items 153 223 834 943 Takes into account progress on existing programs Restructuring and integration costs

  32. Slide 32: Net Income Transition

    Net Income Transition Siemens Energy In €m Q4 FY21 Q4 FY22 FY21 FY22 Gas and Power (79) 161 362 633 Financial result Impacted by interest expenses and currency effects SGRE (224) 348 (296) (663) Reconciliation to Siemens Energy (25) (21) (78) (45) Tax Adj. EBITA (327) 489 (12) (75) Include effects f

  33. Slide 33: Cash Flow Statement

    Cash Flow Statement Siemens Energy In €m Q4 FY21 Q4 FY22 FY21 FY22 Net income (383) 378 (560) (647) Free Cash Flow pre tax Amortization, depreciation and impairments 386 383 1,463 1,633 • GP: Free cash flow pre tax more than tripled Change in operating net working capital compared to prior-year quar

  34. Slide 34: Nominal versus comparable growth rates

    Nominal versus comparable growth rates Siemens Energy In €m Q4 FY21 Q4 FY22 % nom. % comp.1 FY21 FY22 % nom. % comp.1 Gas and Power2 6,233 7,888 26.5 20.6 20,888 26,883 28.7 23.9 SGRE 2,884 4,405 52.7 43.5 12,185 11,598 (4.8) (8.0) Reconciliation to Siemens Energy (18) (59) (73) (169) Total Orders 9

  35. Slide 35: Disaggregation of revenue

    Disaggregation of revenue Siemens Energy In €m Q4 FY21 Q4 FY22 % change FY21 FY22 % change Types of activities in Gas and Power New units 3,229 3,548 9.9 10,792 11.276 4.5 Service contracts 2,104 2,261 7.5 7,490 7,907 5.6 Types of business in SGRE Wind turbines 2,292 2,649 15.6 8,272 7,616 (7.9) Ope

  36. Slide 36: Profit and Loss Statement (I)

    Profit and Loss Statement (I) Siemens Energy In €m Q4 FY21 Q4 FY22 FY21 FY22 Revenue 8,196 9,180 28,482 28,997 Cost of sales (7,493) (7,685) (25,066) (25,572) Gross profit 703 1,496 3,417 3,425 Gross profit margin 8.6% 16.3% 12.0% 11.8% Research and development expenses (346) (318) (1,155) (1,078) R

  37. Slide 37: Profit and Loss Statement (II)

    Profit and Loss Statement (II) Siemens Energy In €m Q4 FY21 Q4 FY22 FY21 FY22 Gas and Power1 5,353 5,848 18,395 19,280 SGRE 2,863 3,372 10,198 9,814 Reconciliation to Siemens Energy (19) (39) (110) (96) Total Revenue 8,196 9,180 28,482 28,997 Gas and Power1 153 223 834 943 SGRE (176) 389 (99) (526)

  38. Slide 38: Statement of Financial Position

    Statement of Financial Position Siemens Energy In €m Sep. 30, 2021 Sep. 30, 2022 Goodwill and other intangible assets 13,099 14,048 Property, plant and equipment and other non-current assets 7,645 8,460 Inventories 6,146 7,983 Trade and other receivables 5,110 5,572 Contract assets 4,913 4,718 Cash

  39. Slide 39: Profit Bridge from SGRE to SE disclosure Q4 FY22

    Profit Bridge from SGRE to SE disclosure Q4 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

  40. Slide 40: Profit Bridge from SGRE to SE disclosure FY22

    Profit Bridge from SGRE to SE disclosure FY22 Profit Bridge from SGRE1 to SE2 disclosure (in €m) Integration & Adj. EBITA EBIT Restructuring EBIT Financial Cons. and Acc. Adj. EBITA (before (underlying) Cost PPA effects3 (as reported) PPA effects3 Income Differences (as reported) Special Items4 Spec

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