Siemens Energy Ag · XETR:ENR
Siemens Energy — Q4 FY2020 Earnings Presentation
35 slides from Siemens Energy's earnings presentation, Nov 10, 2020
Slide 1: Successful spin-off and solid Q4
Successful spin-off and solid Q4 Christian Bruch, President and CEO Siemens Energy Maria Ferraro, CFO Siemens Energy Analyst presentation Q4 FY20 and FY20 Munich, November 10, 2020 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2020
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 FY20 3 2020-11-10 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2020
Slide 4: FY20 Key Messages
FY20 Key Messages Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI Resilient operating +1% €(17)m (5)% performance – 33.7 34.0 guidance achieved 28.8 27.5 Free Cash Flow pre tax FY19 FY20 €977m FY19 FY20 Covid-19 Continuous customer support and focus on employee safety Spin-off triggers Success
Slide 5: Q4 Key Messages
Q4 Key Messages Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (24)% €70m (8)% Key figures 9.2 8.3 7.0 7.6 Free Cash Flow pre tax Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 €704m Spin-off completed Successful listing at Frankfurt Stock Exchange Sep 28 Market environment Markets stabilizing; FX headwinds
Slide 6: Covid-19 update
Covid-19 update Employees Focus on Health and Safety All fabrication sites operating outside India; 50 out of 75 at full Business continuity capacity No major supply chain interruptions Deferrals of projects and outages Business impact Order awards postponed, limitations of site access Digital servi
Slide 7: Energy of Tomorrow: Executing our strategy
Energy of Tomorrow Executing our strategy We energize society Leading the energy transformation • Most valued energy technology company Accelerating • Electrifying countries and communities • Act as data-driven company Impact • Focus and deliver on the fundamentals • Co-create innovations with custo
Slide 8: Executing our strategy – Accelerating Impact
Executing our strategy – Accelerating Impact Focus and deliver on Supplier Days initiated – targeting €2.5bn purchasing volume fundamentals IT cost savings – Alignment of IT systems throughout organization Co-create innovations with SPIC - First MW green hydrogen production project in China customer
Slide 9: Coal strategy – step towards a sustainable portfolio
Effective immediately, Siemens Energy will no longer Coal strategy – step towards a 1 participate in new tenders for pure coal-fired power plants sustainable portfolio 2 Existing commitments for coal-fired power plant projects will be honored 3 Service and solutions for existing plants will continue
Slide 10: Q4 FY20 project awards
Q4 FY20 project awards SE technology for 7th offshore wind SE to help Total achieve low-emission SE and Kineticor reduce Canada’s SGRE’s flagship 14MW turbine to farm connection in the North Sea goals for largest LNG project in Africa carbon footprint power Sofia offshore project in UK • HVDC techno
Slide 11: Hydrogen
Hydrogen First megawatt green hydrogen production project in China • First large scale PEM electrolysis project in China • Cooperation with SPIC on green hydrogen • Lighthouse project for ongoing energy transition • Hydrogen supply for public transportation during and after Beijing Olympic Games 202
Slide 12: Financial section
Financial section Maria Ferraro, CFO Analyst Call | Q4 FY20 12 2020-11-10 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2020
Slide 13: Focused on Sustainable Shareholder Value Creation
Focused on Sustainable Shareholder Value Creation Strong business foundation with large 1 order backlog and resilient service business 2 Clear path to margin improvement with ongoing cost programs 3 Asset excellence – Cash upside from rigorous working capital management Analyst Call | Q4 FY20 13 202
Slide 14: Siemens Energy Group at a glance FY20
Siemens Energy Group at a glance FY20 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) +1% (5)% 33.7 34.0 n/a 28.8 27.5 1,517 (17) 5.3% (0.1)% FY19 FY20 FY19 FY20 FY19 FY20 Order Backlog1 Book-to-Bill Ratio Free Cash Flow2 €79bn 1.24 €977m FY19: €77bn FY19: 1.17 FY19: €1,164m 1 As of Se
Slide 15: Siemens Energy Group at a glance Q4 FY20
Siemens Energy Group at a glance Q4 FY20 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (24)% 10.0 (8)% (87)% 9.2 9.4 8.3 523 7.6 7.0 7.6 6.4 6.8 6.7 200 (74) (213) 70 +6.3% 6.3% (1.2)% (1.2)% +2.9% 2.9% (3.2)% 0.9% Q4 FY19 Q1 Q2 Q3 Q4 FY20 Q4 FY19 Q1 Q2 Q3 Q4 FY20 Q4 FY19 Q1 Q2 Q3 Q4
Slide 16: Special Items
Special Items Reconciliation of Adj. EBITA before Special Items Gas and Power In €m Q4 FY19 Q4 FY20 FY19 FY20 • Restructuring costs Gas and Power Takes into account the partial closure of the site in Le Havre and further progress on existing Adj. EBITA before Special Items 283 43 836 254 programs (P
Slide 17: Net Income Transition
Net Income Transition Siemens Energy In €m Q4 FY19 Q4 FY20 FY19 FY20 PPA Gas and Power 83 (194) 589 (734) • Q4 reduction in GP from €53m to €33m reflects write-down of intangibles related to AGTs SGRE 125 (80) 481 (711) • SGRE at €59m lower than in the prior-year Reconciliation to Siemens Energy (1)
Slide 18: Operating net working capital
Operating net working capital Gas and Power ONWC In €bn FY18 FY19 FY20 • Reduction of ONWC of €1bn driven by inventory reduction and favorable shift between contract Trade receivables 4.3 3.9 3.8 assets and contract liabilities • Inventories benefit from write-downs; underlying Inventories 5.1 5.3 4
Slide 19: Cash Flow Statement
Cash Flow Statement Siemens Energy In €m Q4 FY19 Q4 FY20 FY19 FY20 Amortization, depreciation and Net income 79 (390) 282 (1,859) impairments Amortization, depreciation and impairments 351 394 1,209 2,051 • GP FY20: included are IPR impairments of Change in operating net working capital €476m relate
Slide 20: Net Cash Position
Net Cash Position Net cash / (Net debt) as of September 30, 2020 (in €m) 4,912 4,630 282 (2,385) 2,366 (161) (1,057) 1,309 Cash and cash Receivables from Total liquidity Long- and Payables to Net cash / (Net Provision for Adjusted Net equivalents Siemens Group short term debt Siemens Group debt) (un
Slide 21: Gas and Power at a glance FY20
Gas and Power at a glance FY20 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (9)% (70)% (3)% 21.2 836 19.3 18.7 18.1 254 FY19 FY20 FY19 FY20 4.5% 1.4% FY19 FY20 Order Backlog1 Book-to-Bill Ratio Free Cash Flow2 €48bn 1.07 €536m FY19: €52bn FY19: 1.13 FY19: €651m 1 As of September 30,
Slide 22: Gas and Power at a glance Q4 FY20
Gas and Power at a glance Q4 FY20 Orders (in €bn) Revenue (in €bn) Adj. EBITA before SI (in €m) (27)% (11)% (85)% 6.1 5.4 5.4 5.4 283 4.4 4.6 4.8 4.1 4.4 4.3 199 67 43 (55) 5.2% 1.5% 4.3% (1.3)% 0.9% Q4 FY19 Q1 Q2 Q3 Q4 FY20 Q4 FY19 Q1 Q2 Q3 Q4 FY20 Q4 FY19 Q1 Q2 Q3 Q4 FY20 • High base of comparison
Slide 23: FY21 Key Messages
FY21 Key Messages We confirm our guidance, which does not reflect further financial Outlook impact from Covid-19 during fiscal year 2021 Accelerating impact Next steps to be taken to drive operational excellence We continue to support our customers whilst making sure our Covid-19 employees and partn
Slide 24: Financial outlook and framework
Financial outlook and framework Actuals Profit forecast 3-year guidance Mid-term target FY19 FY20 FY20 FY21 FY23 Revenue €18.7bn €18.1bn (5)%-(3)% 2%-11% Gas and Power % Growth y-o-y2 (1.4)% (3.1)% Adj. EBITA before Special Items €836m €254m 0%-2% 3.5%-5.5% 6%-8% % Margin before Special Items 4.5 %
Slide 25: We are #TeamPurple #WeEnergizeSociety
We are #TeamPurple #WeEnergizeSociety Siemens Energy is a registered trademark licensed by Siemens AG. Restricted © Siemens Energy, 2020
Slide 26: Questions & Answers
Questions & Answers Christian Bruch and Maria Ferraro Analyst Call | Q4 FY20 26 2020-11-10 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2020
Slide 27: Financial Calendar / Contact Investor Relations
Financial Calendar 2020 2021 Sep 1 Sep 28 Nov 10 Feb 2 Feb 10 CMD Listing Siemens Energy Q4 FY20 Q1 FY21 Siemens Energy AGM Contact Investor Relations Michael Hagmann Tobias Hang Harald Albrecht Head of Investor Relations tobias.hang@siemens-energy.com albrecht.harald@siemens-energy.com michael.hagm
Slide 28: Appendix
Appendix Analyst Call | Q4 FY20 28 2020-11-10 Siemens Energy is a registered trademark licensed by Siemens AG. Unrestricted © Siemens Energy, 2020
Slide 29: Profit and Loss Statement (I)
Profit and Loss Statement (I) Siemens Energy In €m Q4 FY19 Q4 FY20 FY19 FY20 Revenue 8,293 7,629 28,797 27,457 Cost of sales (7,195) (6,954) (24,615) (25,318) Gross profit 1,098 676 4,181 2,139 Gross profit margin 13.2% 8.9% 14.5% 7.8% Research and development expenses (318) (296) (1,001) (985) R&D
Slide 30: Profit and Loss Statement (II)
Profit and Loss Statement (II) Siemens Energy In €m Q4 FY19 Q4 FY20 FY19 FY20 Gas and Power 5,394 4,794 18,709 18,120 SGRE 2,944 2,868 10,227 9,483 Reconciliation to Siemens Energy (45) (33) (140) (147) Total Revenue 8,293 7,629 28,797 27,457 Gas and Power 283 43 836 254 SGRE 241 30 687 (249) Reconc
Slide 31: Statement of Financial Position
Statement of Financial Position Siemens Energy In €m Sep. 30, 2019 Jun. 30, 2020 Sep. 30, 2020 Goodwill and other intangible assets 14,558 13,609 13,215 Property, plant and equipment and other non-current assets 5,566 7,323 7,262 Inventories 7,148 7,250 6,530 Trade and other receivables 5,097 4,205
Slide 32: Profit Bridge from SGRE to SE disclosure Q4 FY20
Profit Bridge from SGRE to SE disclosure Q4 FY20 Profit Bridge from SGRE1 to SE2 disclosure (in €m) Integration & Consolidation Adj. EBITA Restructuring EBIT (as Reversal: Financial and accounting Adj. EBITA (before EBIT (underl.) Cost PPA effects reported) PPA effects Income differences (as reporte
Slide 33: Profit Bridge from SGRE to SE disclosure FY20
Profit Bridge from SGRE to SE disclosure FY20 Profit Bridge from SGRE1 to SE2 disclosure (in €m) Integration & Consolidation Adj. EBITA Restructuring EBIT (as Reversal: Financial and accounting Adj. EBITA (before EBIT (underl.) Cost PPA effects reported) PPA effects Income differences (as reported)
Slide 34: We have a clear framework for value creation
We have a clear framework for value creation Performance Portfolio Covered in incentive framework Research and Portfolio Development optimization 6.5-8.5% ≥8% ~€1bn Resize Adj. EBITA margin before Adj. EBITA margin Siemens annual spending the portfolio Special Items Siemens Energy mid-term target1 E
Slide 35: Sustainability is at the core of our actions
Sustainability is at the core of our actions We are committed to the UN‘s Climate neutral in own operations by 2030 Sustainable Development Goals 100% of own power Green electricity consumption by 2023 published first time in Sustainability report December 2020 exiting new business; compliance Clear