Siemens Energy Ag · XETR:ENR
Siemens Energy — Q1 2023 Earnings Presentation
27 slides from Siemens Energy's earnings presentation, Feb 7, 2023
Slide 1: Strong underlying performance notwithstanding charges at SGRE
Strong underlying performance notwithstanding charges at SGRE Christian Bruch, President and CEO Siemens Energy Maria Ferraro, CFO Siemens Energy Analyst presentation Q1 FY23 Munich, February 7, 2023 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2023
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: CEO section
CEO section Christian Bruch, CEO Analyst Call | Q1 FY23 3 2023-02-07 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2023
Slide 4: Key Messages
Key Messages Highlights / Lowlights • Strong order and revenue growth and better than expected cash flow • Underlying profit improvement more than offset by charges at SGRE Q1 FY23 Financial Performance related to installed fleet • Orders: +49.2% comp.2 at €12.7bn • SGRE EGM approved delisting – int
Slide 5: SGRE Update
SGRE Update Market environment • Strong long-term prospects for wind but further action is needed to close gap between ambitious government targets and actual installations Progress report • Terms and conditions have been improved on the new order intake • Onshore stabilization on track - intake ASP
Slide 6: Q1 FY23 Awards and Milestones
Version 18 Q1 FY23 Awards and Milestones Power generation with low Transport and storage Reducing the CO2 footprint & or zero emissions of energy energy consumption in industrial processes Source: BMWK Signed agreement to reinforce Iraq’s World scale order for grid Production starts at Haru Oni - po
Slide 7: FY22 – Major progress towards our ESG targets
FY22 – Major progress towards our ESG targets since 2019 since 2018 FY 2021 0.27 9% 7% 76% 21% 2.47 Mt CO2e reduction reduction emissions since 2019 since 2018 Analyst Call | Q1 FY23 7 2023-02-07 Unrestricted © Siemens Energy, 2023
Slide 8: CFO section
CFO section Maria Ferraro, CFO Analyst Call | Q1 FY23 8 2023-02-07 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2023
Slide 9: SGRE EGM Approved Delisting
SGRE EGM Approved Delisting • ~205.5m of shares tendered for SE to own 97.24% of all SGRE shares (as of 31 Jan) Timeline 21 May 2022 Current status • SGRE EGM approved delisting, standing purchase Public offer announcement order scheduled to end on 7 Feb, suspension of trading thereafter 7 Nov 2022
Slide 10: Siemens Energy Group: Strong Order and Revenue Growth
Siemens Energy Group: Strong Order and Revenue Growth Q1 FY231 Orders Revenue Profit before SI in €bn in €bn in €m Service New Units +49% / +53%2 +16% / +19%2 12.7 7.1 (1.2)% (4.0)% 6.0 2.6 +19% 8.3 2.2 n/a (69) (282) 4.5 +18% 3.8 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Order backlog3 €99bn
Slide 11: Healthy and Resilient Order Backlog
Healthy and Resilient Order Backlog Book-to-Bill Q1 FY23 Expected revenue generation from backlog (€bn) 991 22 • Healthy order backlog is a source 6 of strength and resilience 1.47 GS 16 • Increase across all businesses 1.26 21 over the last 12 months 5 • Large majority of FY23 revenue 54 already se
Slide 12: Net Cash Position Decreased Driven by Financing of CTO
Version 18 Net Cash Position Decreased Driven by Financing of CTO Net cash/(Net debt) as of December 31, 2022 (in € m) 5,449 Reduction driven by €960 m cash 5,494 Increase driven collateral transfer by debt financing to CNMV1 of CTO1 (45) 545 70 (660) Cash and cash Long- and Net cash/ (Net debt) Pen
Slide 13: Gas Services: Strong Improvement Across all KPIs
Gas Services: Strong Improvement Across all KPIs Q1 FY231 Orders Revenue Profit before SI in €bn in €bn in €m +22% / +27%2 8.5% 7.7% 6.4% 4.2% 12.4% +22% /+26%2 3.6 3.8 2.8 84% 3.0 2.4 2.6 2.6 2.6 2.3 318 2.0 173 176 153 117 Q1 FY22 Q2 Q3 Q4 Q1 FY23 Q1 FY22 Q2 Q3 Q4 Q1 FY23 Q1 FY22 Q2 Q3 Q4 Q1 FY23
Slide 14: Grid Technologies: Outstanding Orders and Margin Rebound
Grid Technologies: Outstanding Orders and Margin Rebound Q1 FY231 Orders Revenue Profit before SI in €bn in €bn in €m +225% / +230%2 3.8% 5.0% 1.6% 3.9% 6.9% +19% / +20%2 6.3 2.0 120% 1.6 1.6 110 3.8 1.3 1.4 2.7 69 77 1.9 2.0 50 26 Q1 FY22 Q2 Q3 Q4 Q1 FY23 Q1 FY22 Q2 Q3 Q4 Q1 FY23 Q1 FY22 Q2 Q3 Q4 Q
Slide 15: Transformation of Industry: Strong Margin Progression Across all Businesses
Transformation of Industry: Strong Margin Progression Across all Businesses Q1 FY231 Orders Revenue Profit before SI in €bn in €bn in €m (17)% / (14)%2 (2.7)% 0.5% 1.6% 3.8% 5.7% + 14% / +17%2 1.6 1.4 1.4 1.3 n/a 1.2 1.2 1.0 1.0 1.0 57 0.8 47 17 5 Q1 FY22 Q2 Q3 Q4 Q1 FY23 Q1 FY22 Q2 Q3 Q4 Q1 FY23 (2
Slide 16: Financial Outlook Adjusted
Financial Outlook Adjusted Fiscal Year 2023 Outlook FY231 Revenue Profit3 Margin We expect a net loss on prior fiscal Growth2 before SI year’s reported level. (prev. sharp reduction compared to FY22) Siemens Energy 3 – 7% 1 – 3% We expect free cash flow pre-tax to (prev. 2 – 4%) be positive. (prev.
Slide 17: 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 | Q1 FY23 17 2023-02-07 Unrestricted © Siemens Energy, 2023
Slide 18: We energize society
8Oktober 2022 We energize society © Siemens Energy, 2023
Slide 19: Questions & Answers
Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q1 FY23 19 2023-02-07 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2023
Slide 20: Financial Calendar and Contact Investor Relations
Financial Calendar 2023 Feb 7 May 15 Aug 7 Nov 15 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.hagmann@siemens-energy.c
Slide 21: Appendix
Appendix Analyst Call | Q1 FY23 21 2023-02-07 Siemens Energy is a trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2023
Slide 22: Net Income Transition
Net Income Transition Siemens Energy In €m Q1 FY22 Q1 FY23 Gas Service 207 318 Grid Technologies 45 98 Transformation of Industry (24) 52 SGRE (320) (823) Reconciliation to Siemens Energy 29 (30) Profit (64) (384) Profit margin (1.1)% (5.4)% Amortization of intangible assets acquired in business com
Slide 23: Cash Flow Statement
Cash Flow Statement Siemens Energy In €m Q1 FY22 Q1 FY23 Net income (246) (598) Amortization, depreciation and impairments 335 359 Change in operating net working capital Contract assets 267 (92) Inventories (744) (824) Trade receivables (5) (454) Trade payables (280) (54) Contract liabilities 905 1
Slide 24: Profit Bridge from SGRE to SE disclosure
Profit Bridge from SGRE to SE disclosure Q1 FY23 Profit Bridge from SGRE1 to SE2 disclosure (in €m) Integration & Consolidation Restructuring EBIT (as Income from and accounting Profit (as Profit before EBIT (underl.) Cost PPA effects3 reported) PPA effects3 Equity Invest. differences reported) Spec
Slide 25: FY22 retrospective adjustments – Revenue
Historical comparable key figures FY22 retrospective adjustments – Revenue Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 FY22 FY22 FY22 FY22 FY22 FY22 FY22 FY22 FY22 FY22 Revenue (in €m) adj.1 adj.1 adj.1 adj.1 adj.1 Gas Services 2,037 2,037 2,281 2,282 2,375 2,376 2,801 2,805 9,493 9,499 Grid Technologies 1,323 1,323 1,
Slide 26: FY22 retrospective adjustments – Profit before Special Items
Historical comparable key figures FY22 retrospective adjustments – Profit before Special Items Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 FY22 FY22 FY22 FY22 FY22 FY22 FY22 FY22 FY22 FY22 Profit before Special Items (in €m) adj.1 adj.1 adj.1 adj.1 adj.1 Gas Services 178 173 182 176 182 153 138 117 680 619 Grid Technol
Slide 27: FY22 retrospective adjustments – Net income (loss)
Historical comparable key figures FY22 retrospective adjustments – Net income (loss) Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 FY22 FY22 FY22 FY22 FY22 FY22 FY22 FY22 FY22 FY22 Net income (in €m) adj.1 adj.1 adj.1 adj.1 adj.1 Siemens Energy before Special Items (62) (69) (41) (47) (143) (183) 596 564 350 265 Special