Siemens Energy Ag · XETR:ENR
Siemens Energy — German Investment Seminar 2024
17 slides from Siemens Energy's conference presentation, Jan 9, 2024
Slide 1: Siemens Energy to accelerate its journey to deliver profitable growth and fix wind business
Siemens Energy to accelerate its journey to deliver profitable growth and fix wind business while maintaining a solid financial foundation Maria Ferraro, CFO Siemens Energy German Investment Seminar 2024 New York, January 9, 2024 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy
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: Our mission and key messages
Our mission Key messages Supporting our We have been changing the shape of the company to capitalize on the energy transition customers in transitioning to a more Operational improvements introduced, including the sustainable world, new group structure, have been playing out across Gas Services, Gri
Slide 4: Energy market: opportunities and risks
Energy market Opportunities and risks Capitalizing on opportunities Managing risks 1 Increasing demand • Emerging markets with strong electrification growth • Governmental investment programs 1 Macroeconomic factors • Persistent inflation 2 Adjusted policy frameworks • High interest rates • Framewor
Slide 5: Strong delivery on our CMD 2022 commitments overshadowed by issues at Siemens Gamesa
Strong delivery on our CMD 2022 commitments overshadowed by issues at Siemens Gamesa 01 02 03 04 05 New operating Gas Grid Transformation Siemens model for GP Services Technologies of Industry Gamesa • Customer focus • Service share • HVDC ramp-up • SES industrialization • New operating model • Tran
Slide 6: 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 7: Siemens Gamesa – progress in Onshore and Offshore
Siemens Gamesa – progress in Onshore and Offshore Onshore Offshore Quality issues understood, Offshore factory ramp-up corrective actions in on track preparation, current level of provisions remains best estimate • Technical review of high impact issues completed • SG11 nacelle production more than
Slide 8: Measures in implementation to secure turnaround at Siemens Gamesa
Measures in implementation to secure turnaround at Siemens Gamesa Step plan … … to reach break even in FY26 Simplify product portfolio Turnaround path Siemens Gamesa 1 • Significant reduction of Onshore variants Profit before SI (€bn) • Focus on core markets • Offshore focus on SG 14 236 break even
Slide 9: Prudent financial policy consistent with an investment grade credit profile, net cash in FY24
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 10: Near-term measures to strengthen balance sheet and accelerate transformation
Combination of near-term measures to strengthen balance sheet and accelerate transformation Overview Measures Est. proceeds in FY24 Announced divestments Sale of 18% stake in Siemens Limited (India) ~€2.0bn Measures to target FY24 net cash position Ongoing divestments Sale in progress for further no
Slide 11: ESG: On track to meet and exceed targets
ESG On track to meet and exceed targets Our performance in FY23 vs. our CMD targets Evolution of our ratings since CMD 2022 -30% GHG emissions per € spent by 2030 Low risk rating: 13.6 Suppliers FY23 performance: -17% vs. 2018 B-prime Own Climate neutral by 2030 Decarbo- Operations FY23 performance:
Slide 12: 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
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: Appendix
Appendix German Investment Seminar 14 2024-01-09 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2024 | Maria Ferraro | CFO
Slide 15: Strong but selective growth: investment requirements pre-financed through orders and capex
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 16: Mid-term free cash flow 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 17: Siemens Gamesa: legacy backlog execution and measures pave the way 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