Siemens Energy : Presentation (2024 06 12 European Capital Goods Conference presentation)

Leading the Energy Transition

Christian Bruch, CEO of Siemens Energy European Capital Goods Conference 2024

London, June 12, 2024

Siemens Energy is a trademark licensed by Siemens AG.

© Siemens Energy, 2024

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.

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June 2024	Siemens Energy is a trademark licensed by Siemens AG.	© Siemens Energy, 2024

Siemens Energy is a

global leader in the energy business

~ 1/6	98,750
of global electricity generation	employees work as a team
is based on our technology	to energize society1

€33bn

revenues in FY2023

We are present in	We invest around
€1bn annually in
> 90 countries
	research and development

1 Number of employees as of March 31, 2024 June 2024

Our mission …

To transform the world of energy by supporting our customers on their path towards decarbonization

June 2024

… and what we are doing

We have been changing the shape of the company

to capitalize on the energy transition

Operational improvements introduced, including the new group structure, have been playing out across

Gas Services, Grid Technologies and Transformation of Industry, but not yet at Siemens Gamesa

We will accelerate our journey focusing on three priorities:

• Deliver on profitable growth
• Fix the wind business
• Maintain solid financial foundation

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© Siemens Energy, 2024

We have been changing the shape of the company

to capitalize on the opportunities of the energy transition & to reduce the risks

Capitalizing on opportunities

1. Increasing demand
2. • Emerging markets with strong electrification growth
   • Governmental investment programs
3. Adjusted policy frameworks
4. • Frameworks to support transition (IRA, EU Wind)
   • Further decarbonization drive (e.g., carbon pricing)
5. Sensitivity to security of supply
6. • Need for fuel-flexible generation
   • Pressure on grid stability

Managing risks

1. Macroeconomic factors
2. • Persistent inflation
   • High interest rates
   • Recession risks and high public debt
3. Geopolitical conflicts
4. • Expansion of Middle East conflict
   • Escalation of war in Ukraine
5. Supply chain constraints
6. • Demand-supplyanomalies (esp. minerals)
   • Industry bottlenecks (e.g., jack-up vessels)

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June 2024	© Siemens Energy, 2024

We serve our customers with a clear company structure along the entire energy value chain

Low- or zero-emission	Transport and storage	Reducing CO2 footprint and energy
power generation	of electricity	consumption in industrial processes

Business Area

Siemens Gamesa

Gas Services

Grid Technologies

Transformation of Industry

Market position	#1	#3	#2	#1	#2
Offshore2	Onshore2	Gas turbines	Solutions	Products
			Large & Industrial
Examples	>137 GW wind	7,800 units of	• Global leader in HVDC installations
	turbine installations	rotating equipment	• Most comprehensive SF6-free
			installed	switching portfolio

Leading market positions

>60,000 Industrial steam units and >25,000 Compression units in Service Fleet

Market growth1

Stable

175

(CAGR in GW for wind and in €bn for the other projections)

	98
47
2022	2030

3235

2021 2030

81			60
		26
2022	2030	2022	2030

1 Wind market based on WoodMac Global Wind Power Market Outlook update Q3 2023; excl. China; gas turbine, transmission and industrial market
based on internal market assessment 2 Market position related to cumulative installed fleet exc. China as of FY 2023	6
June 2024	© Siemens Energy, 2024

Deliver on profitable growth

Higher than expected electricity growth is driving profitable growth

Global electricity generation scenarios 2021 vs. 2023 (TWh)

80,000
75,000			Net Zero 2023
		+7%
			Net Zero 2021
70,000
			Announced Pledges 2023
65,000
60,000			+21%
55,000			Announced Pledges 2021
			Stated Policies 2023
50,000			+16%
45,000			Stated Policies 2021
40,000
35,000
30,000
0
2020	2030	2040	2050

Gas Services

			Orders (€m)			Revenue (€m)			Book to bill
15,000												3.0
12,000												2.5
9,000												2.0
														1.5
6,000												1.0
3,000												0.5
0												0.0
				FY21	FY22	FY23	H1 FY23	H1 FY24
Grid Technologies
				Orders (€m)					Revenue (€m)				Book to bill
18,000											3.0
15,000											2.5
12,000											2.0
9,000											1.5
6,000											1.0
3,000											0.5
0											0.0
				FY21	FY22	FY23	H1 FY23	H1 FY24

Source: IEA WEO 2021 / 2023	7
June 2024	© Siemens Energy, 2024

Fix the wind business

Measures in implementation to secure turnaround at Siemens Gamesa …

Step plan …

… to reach break even in FY26

1. Simplify product portfolio
2. • Significant reduction of Onshore variants
   • Focus on core markets
   • Offshore focus on SG 14 236
3. Optimize footprint & operations
4. • Offshore to increase output significantly
   • Focus on countries with supportive regulation
   • Exit non-core activities
5. Strengthen processes & control
6. • Integration and centralization of functions to deliver €300m of synergies

Turnaround path Siemens Gamesa

Profit before SI (€bn)

break even

~(2.0)

(4.3)
FY23	FY24	FY25	FY26

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June 2024	© Siemens Energy, 2024

Fix the wind business

… with a clear way forward to return to profitability

Onshore

Offshore

New organization

June 2024

Stabilizing 4.X and 5.X platforms and focus on core markets

• No new technical findings and no material change to cost assumptions related to quality topics
• Europe and US as core markets to be addressed by revised 4.X and 5.X platforms
• Sales activity for 4.X in Europe to resume by end of FY24
• Optimization of manufacturing footprint ongoing

Building on our leading market position to deliver profitable growth

• Ongoing ramp-up activities with improvement made in Hull; all other facilities in line
• SG 14 MW to be the volume product until the end of the decade

Reduced hierarchical layers and clear business accountability

• Streamlining of the organization in line with Siemens Energy principles
• Integrate service and new unit business with a focus on an enhanced client value proposition
• Corporate function integration with Siemens Energy

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© Siemens Energy, 2024

Maintain solid financial foundation

Order backlog as a source of strength and resilience

Order backlog

Backlog project margin

(in €bn)	~90%	~60%

112

97

GS	+2pp
51%1

Resilient service

29

TI

+2pp

share

60

GT

+3pp

• Selective growth strategy and

23

SG -4pp

	operational excellence in former
	GP businesses
•	Margin profile supporting mid-
	term targets
•	Protection through price

escalation clauses

• Clear visibility on Siemens

Gamesa legacy backlog execution

FY22	FY23	Reach FY24e	Reach FY25e Reach FY26ff	FY22	FY23	• Growth in new units supporting
									rejuvenation of serviced fleet
% % of respective year revenues	SG	TI	GT	GS	1 Service backlog as % of total order backlog	10
June 2024									© Siemens Energy, 2024