Siemens Energy Ag · XETR:ENR
Siemens Energy — Q4 2023 Earnings Presentation
32 slides from Siemens Energy's earnings presentation, Nov 15, 2023
Slide 1: Excellent performance of majority of businesses in FY2023 overshadowed by wind business
Excellent performance of majority of Siemens Energy’s businesses in fiscal year 2023 overshadowed by wind business Christian Bruch, President and CEO Siemens Energy Maria Ferraro, CFO Siemens Energy Analyst presentation Q4 FY23 and FY23 Munich, November 15, 2023 Siemens Energy is a trademark license
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 | Q4 FY23 3 2023-11-15 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023
Slide 4: Key Messages Q4 FY23
Key Messages Q4 FY23 Financial Performance1 ▪ Orders: neg. 7.8% comp.2 at €10.6bn FY23 results ▪ Order backlog at new record high of €112bn ▪ Revenue: neg. 2.5% comp.2 at €8.5bn; book-to-bill of 1.24 • Q4 and full year results in line with guidance as per Q3 ▪ Profit before SI: neg. €487m (Q4 FY22:
Slide 5: FY23 Guidance recap
FY23 Guidance recap Gas Services, Grid Technologies and Transformation of Industry on track for mid-term targets (FY25) FY23 FY23 guidance Delivered Revenue Growth1 9.9% 9 – 11% ✓ Siemens Profit Margin before SI (8.9)% neg. 10 – 8% ✓ Energy Free cashflow pre-tax €0.8bn neg. low triple-digit million
Slide 6: Guarantees for Customer Contracts
Guarantees for Customer Contracts Key facts: Average Type of Typical • Issuance of supply & service guarantees to customers is standard guarantee amount tenor market practice in the industry • Guarantees protect customers in case contractual obligations are Advance not fulfilled ~10–20% of Payment ~
Slide 7: Strong track-record delivering on our targets across our former GP businesses
Strong track-record delivering on our targets across our former GP businesses Orders SE w/o SG Revenue SE w/o SG in €bn in €bn • Market momentum remains strong 33.6 • Excellent performance of the 26.7 22.0 former GP businesses 20.8 18.0 18.3 19.2 19.3 (representing 2/3 of our revenue) • Growing orde
Slide 8: 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 9: 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 10: Q4 FY23 Awards and Milestones
Version 18 Q4 FY23 Awards and Milestones Power generation with low or zero emissions Transport and storage of energy Reducing the CO2 footprint Gas Services Siemens Gamesa Grid Technologies Transformation of Industry World’s first gas turbine operation World’s largest Offshore windfarm Hybrid grid s
Slide 11: CFO section
CFO section Maria Ferraro, CFO Analyst Call | Q4 FY23 11 2023-11-15 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023
Slide 12: Siemens Energy Group: Excellent performance of former GP businesses overshadowed by Siemens Gamesa
Siemens Energy Group: Excellent performance of former GP businesses overshadowed by Siemens Gamesa FY231 Orders Revenue Profit before SI in €bn in €bn in €m Service New Units +34% / +32%² +10% / +7%2 50.4 31.1 29.0 0.8% (8.9)% 38.3 11.1 +10% 10.1 n/a 225 (2,776) 18.9 20.0 +6% FY22 FY23 FY22 FY23 FY2
Slide 13: Order backlog transparency secures future revenue
Order backlog transparency secures future revenue SE order backlog development (€bn) Expected revenue generation from backlog (€bn) +44% 112 29 112 • Large majority of FY24 revenue 9 already secured in the backlog 97 21 • Increase across all businesses 84 57 23 79 57 6 • Stronger growth in new units
Slide 14: FY23 strong finish to year-end, net debt lower than expected
FY23 strong finish to year-end, net debt lower than expected Net cash/(Net debt) as of September 30, 2023 (€m) Maturity of outstanding financial debt1 (€bn) 4,588 Short and long term debt includes lease liabilities in 1.0 1.1 1,591 the amount of €1.6bn 0.4 0.4 0.8 0.8 3,190 0.6 (193) 519 FY24 FY25 F
Slide 15: Combination of near-term measures to strengthen balance sheet and accelerate transformation
5 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
Slide 16: Sale of 18% in Siemens Limited (India) to Siemens AG
Sale of 18% in Siemens Limited (India) to Siemens AG to provide ~€2.1bn in near-term proceeds Sale of Siemens Limited (SIL) stake to Siemens AG SIL ownership/market value (SAG) • SE and SAG agree a sale of an 18% stake in SIL by SE Market cap 13 Nov to SAG for ~€2.1bn; SE will retain 6% stake • Purc
Slide 17: Gas Services: Solid finish to a particular strong FY23
Gas Services: Solid finish to a particular strong FY23 Q4 FY231 Orders Revenue Profit before SI in €bn in €bn in €m +2% / (4)%² 4.2% 12.4% 10.5% 10.9% 4.3% +4% / (0)%2 4.5 3.8 2.8 2.8 2.7 2.8 +3.7% 2.6 2.6 318 299 296 2.5 2.2 117 121 Q4 FY22 Q1 FY23 Q2 Q3 Q4 Q4 FY22 Q1 FY23 Q2 Q3 Q4 Q4 FY22 Q1 FY23
Slide 18: Grid Technologies: Sharp improvement in profitability
Grid Technologies: Sharp improvement in profitability Q4 FY231 Orders Revenue Profit before SI in €bn in €bn in €m (38)% / (40)%2 3.9% 6.9% 6.6% 8.7% 7.8% +6% / +2%² 6.3 2.0 2.0 >+100% 1.7 1.8 4.3 1.6 159 158 3.8 2.9 110 115 2.3 77 Q4 FY22 Q1 FY23 Q2 Q3 Q4 Q4 FY22 Q1 FY23 Q2 Q3 Q4 Q4 FY22 Q1 FY23 Q2
Slide 19: Transformation of Industry: Strong book-to-bill paving the way for future growth
Transformation of Industry: Strong book-to-bill paving the way for future growth Q4 FY231 Orders Revenue Profit before SI in €bn in €bn in €m +11% / +3%² 3.8% 5.7% 6.3% 6.5% 2.4% +5% / (3)%² 1.6 1.7 (39.3)% 1.4 1.3 1.2 1.3 1.2 1.1 1.2 1.0 73 70 57 47 29 Q4 FY22 Q1 FY23 Q2 Q3 Q4 Q4 FY22 Q1 FY23 Q2 Q3
Slide 20: Siemens Gamesa: Deteriorated backlog margin and ramp-up delay in offshore weigh on profitability
Siemens Gamesa: Deteriorated backlog margin and ramp-up delay in offshore weigh on profitability Q4 FY231 Orders Revenue Profit before SI in €bn in €bn in €m +3% / (4)%² 11.1% (37.8)% (15.4)% (124.1)% (25.6)% 7.4 (20)% / (23)%² 3.4 n/a 4.4 2.4 2.6 374 4.2 2.1 3.6 2.0 1.6 (374) (664) (759) Q4 FY22 Q1
Slide 21: Financial outlook FY24 and FY26 targets
Financial outlook FY24 and FY26 targets FY24 Outlook FY26 Targets Revenue Profit Margin Revenue Margin Growth3 before SI1 CAGR4 reported1 Gas Services (4) – 0% 9 – 11% Flat 10 – 12% Grid Technologies 18 – 22% 7 – 9% Low double digit 9 – 11% Transformation of Industry 8 – 12% 5 – 7% High single digit
Slide 22: Key Priorities for FY24
1 Stabilizing Siemens Gamesa Key Priorities for FY 24 2 Leverage market opportunities in Gas Services, Grid Technologies and Transformation of Industry Executing the announced balance sheet measures and 3 acceleration of portfolio transformation to strengthen the core business Analyst Call | Q4 FY23
Slide 23: Next event
Next event See you at the Capital Market day in Hamburg on November 21! Analyst Call | Q4 FY23 23 2023-11-15 © Siemens Energy, 2023
Slide 24: We energize society
4Oktober 2022 We energize society Analyst Call | Q4 FY23 24 2023-11-15 Unrestricted © Siemens Energy, 2023
Slide 25: Questions & Answers
Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q4 FY23 25 2023-11-15 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023
Slide 26: Financial Calendar and Contact Investor Relations
Financial Calendar 2023 2024 Nov 15 Nov 21-22 Feb 7 Feb 22 May 8 Q4 FY23 Capital Q1 FY24 Annual General Q2 FY24 Market Day Meeting Contact Investor Relations Michael Hagmann Harald Albrecht Tobias Hang Head of Investor Relations albrecht.harald@siemens-energy.com tobias.hang@siemens-energy.com micha
Slide 27: Appendix
Appendix Analyst Call | Q4 FY23 27 2023-11-15 Siemens Energy is a trademark licensed by Siemens AG. © Siemens Energy, 2023
Slide 28: FY24 financial considerations for SE
FY24 financial considerations for SE Reconciliation line on Profit ~ neg. €250m before Special Items Financial result ~ neg. €150m R&D ~ €1.2bn Capex ~ €1.8bn Gains from disposals ~ pos. €2bn Analyst Call | Q4 FY23 28 2023-11-15 © Siemens Energy, 2023
Slide 29: Additional financial disclosure for Siemens Gamesa
Additional financial disclosure for Siemens Gamesa1 Q4 FY22 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 WTG Profit Margin before SI 7.2% (13.2)% (28.7)% (22.6)% (129.3)% (33.8)% (51.6)% Revenue (€m) 1,875 4,842 751 1,042 651 914 3,359 Volume (MWe) 1,794 6,021 1,080 1,487 1,300 1,317 5,183 Onshore Orde
Slide 30: Net Income Transition
Net Income Transition Siemens Energy In €m Q4 FY22 Q4 FY23 FY22 FY23 Gas Service 107 111 524 1,050 Grid Technologies 62 152 152 516 Transformation of Industry 39 12 (59) 209 Siemens Gamesa 334 (670) (713) (4,439) Reconciliation to Siemens Energy (83) (156) (91) (297) Profit 459 (551) (188) (2,960) P
Slide 31: Cash Flow Statement
Cash Flow Statement Siemens Energy In €m Q4 FY22 Q4 FY23 FY22 FY23 Net income 354 (870) (712) (4,588) Amortization, depreciation and impairments 383 390 1,633 1,515 Change in operating net working capital Contract assets 375 379 491 321 Inventories 86 347 (1,549) (1,235) Trade and other receivables
Slide 32: 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 adj.1 Profit before Special Items (in €m) adj.1 adj.1 adj.1 adj.1 Gas Services 173 173 176 176 153 153 117 117 619 619 Grid Technol