Siemens Energy : Q3 FY2023 Presentation Analyst Call

Serious ramp-up challenges

in the wind business overshadow excellent performance in conventional energy business

Christian Bruch, President and CEO Siemens Energy

Jochen Eickholt, CEO Siemens Gamesa

Maria Ferraro, CFO Siemens Energy

Analyst presentation Q3 FY23

Berlin, August 7, 2023

Siemens Energy is a trademark licensed by Siemens AG.

Unrestricted © Siemens Energy, 2023

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 such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project," or words of similar meaning. We may also make forward-looking statements in other reports, prospectuses, in presentations, in material delivered to shareholders, and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens Energy´s management, of which many are beyond Siemens Energy´s control. These are subject to a number of risks, uncertainties, and other factors, including, but not limited to, those described in disclosures, in particular in the chapter "Report on expected developments and associated material opportunities and risks" in the Annual Report. Should one or more of these risks or uncertainties materialize, should acts of force majeure, such as pandemics, occur, or should underlying expectations including future events occur at a later date or not at all, or should assumptions prove incorrect, Siemens Energy´s actual results, performance, or achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens Energy neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. This document includes supplemental financial measures - that are not clearly defined in the applicable financial reporting framework - and that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens Energy´s net assets and financial position or results of operations as presented in accordance with the applicable financial reporting framework in its consolidated financial statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

		Analyst Call | Q3 FY23	2
2023-08-07	Siemens Energy is a trademark licensed by Siemens AG.	Unrestricted © Siemens Energy, 2023

CEO section

Christian Bruch, CEO

		Analyst Call | Q3 FY23	3
2023-08-07	Siemens Energy is a trademark licensed by Siemens AG.	Unrestricted © Siemens Energy, 2023

Key Messages

Highlights / Lowlights

• Excellent performance of former Gas and Power businesses
• Setback at Siemens Gamesa due to product quality problems, increased product costs, and offshore ramp-up challenges; remediation actions initiated

Market Environment

• Strong market dynamics in former Gas and Power businesses continue
• Still strong demand in wind; rising awareness at customers regarding challenging economics

Siemens Energy FY23 Guidance adjusted

• Financial projections for Gas Services, Grid Technologies and Transformation of Industry unchanged
• Revenue: 9% to 11% comparable2; prev. 10% to 12%
• Profit margin before SI: (10)% to (8)%; prev. low end of 1% to 3%
• Net loss: around €4.5bn; prev. exceeding prior fiscal year's level of €712m by up to a low-triple-digit million € amount
• Free cash flow pre tax: up to a negative low triple-digit million € amount; prev. positive up to a low triple-digit million €

2023-08-071 Prior year figures are presented on a comparable basis | 2 Comparable: excluding currency translation and portfolio effects

Q3 FY23 Financial Performance1

• Orders: +54.2% comp.2 at €14.9bn
• Order backlog at new record high of €109bn
• Revenue: +8.0% comp.2 at €7.5bn; book-to-bill of 1.98
• Profit before SI: neg. €2.0bn (Q3 FY22: neg. €222m)
• Profit margin before SI: neg. 27.3% (Q3 FY22: neg. 3.0%)
• FCF pre tax: €27m (Q3 FY22: neg. €25m)

Analyst Call | Q3 FY23

4

Unrestricted © Siemens Energy, 2023

Siemens Energy without Siemens Gamesa: Successful turnaround

Continuous improvement across all KPIs, delivering on its targets

Orders				Revenue
in €bn				in €bn
	26.7		27.3
19.3	20.8	18.9		18.0	18.3	19.2
							16.1
							13.4

FY20 FY21 FY22 9M FY22 9M FY23 FY20 FY21 FY22 9M FY22 9M FY23

Profit before SI1	Free Cash Flow pre-tax
in €bn	in €bn

1.3%	4.3%	4.4%	4.9%	8.7%			2.3
				1.4					1.6
								1.4
						1.1
	0.8	0.8	0.7		0.9
0.2
FY20	FY21	FY22	9M FY22	9M FY23	FY20	FY21	FY22	9M FY22	9M FY23
1 Prior year figures are presented on a comparable basis
2023-08-07

• The outlook and business momentum remain strong
• Excellent performance of the former GP business (representing 2/3 of our revenue)
• Growing order volume and order quality leads to a healthy order backlog with better margin profile
• Strong revenue growth and margin uptick across the board
• Excellent cash flow performance
• On strong trajectory to reach FY23 financial projections for GS, GT and TI

X.X% Profit margin before Special Items

Analyst Call | Q3 FY23

5

Unrestricted © Siemens Energy, 2023