Siemens Gamesa Renewable Energy S A : Third Quarter FY21 - Results presentation

Q321

RESULTS

July 30, 2021

DISCLAIMER

"This material has been prepared by Siemens Gamesa Renewable Energy, and is disclosed solely for information purposes.

This document contains declarations which constitute forward-looking statements, and includes references to our current intentions, beliefs or expectations regarding future events and trends that may affect our financial condition, earnings and share price. 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. These forward-looking statements do not constitute a warranty as to future performance and imply risks and uncertainties. Therefore, actual results may differ materially from those expressed or implied by the forward-looking statements, due to different factors, risks and uncertainties, such as economical, competitive, regulatory or commercial factors. The value of any investment may rise or fall and, furthermore, it may not be recovered, partially or completely. Likewise, past performance is not indicative of future results.

The facts, opinions, and forecasts included in this material are furnished as of the date of this document, and are based on the company's estimates and on sources believed to be reliable by Siemens Gamesa Renewable Energy, but the company does not warrant their completeness, timeliness or accuracy, and, accordingly, no reliance should be placed on them in this connection. Both the information and the conclusions contained in this document are subject to changes without notice. Siemens Gamesa Renewable Energy undertakes no obligation to update forward-looking statements to reflect events or circumstances that occur after the date the statements were made.

The results and evolution of the company may differ materially from those expressed in this document. None of the information contained in this document constitutes a solicitation or offer to buy or sell any securities or advice or recommendations with regard to any other transaction. This material does not provide any type of investment recommendation, or legal, tax or any other type of advice, and it should not be relied upon to make any investment or decision.

Any and all the decisions taken by any third party as a result of the information, materials or reports contained in this document are the sole and exclusive risk and responsibility of that third party, and Siemens Gamesa Renewable Energy shall not be responsible for any damages derived from the use of this document or its content.

This document has been furnished exclusively for information purposes, and it must not be disclosed, published or distributed, partially or totally, without the prior written consent of Siemens Gamesa Renewable Energy.

Siemens Gamesa Renewable Energy prepares and reports its Financial Information in thousands of euros (unless stated otherwise). Due to rounding, numbers presented may not add up precisely to totals provided."

Note on alternative performance measures (APMs)

This document includes supplemental financial measures 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 Gamesa´s net assets and financial position or results of operations as presented in its consolidated financial statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. The definitions and reconciliation of the alternative performance measures that are included in this presentation are disclosed in the Activity Report associated to these and previous results. The glossary of terms is also included in the Activity Report associated to these results.

© Siemens Gamesa Renewable Energy

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Q3 21 Key points

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	Key points

Key points

• 9M 21 revenue: €7,335m (Q3 21: €2,704m) and 9M 21 EBIT margin1: 1.1% (Q3 21: -5.6%)
• • Q3 21 EBIT1 affected by provisions for onerous contracts (c. €229m) driven by the impact on profitability of the WTG backlog of raw material price increases and high Siemens Gamesa 5.X ramp-up costs, especially on contracts with FY22 and FY23 delivery in Brazil
• Actions taken:
• • Mechanisms to protect from raw material price volatility, such as indexation, strengthened in WTG contracts
  • Enhanced procurement practices with increased hedging and increased back-to-back coverage with suppliers
  • • Cost-outprograms and new technical features to mitigate impact of raw material price increases and ramp-up costs
  • Special actions around the Siemens Gamesa 5.X in Brazil and better control of ramp-up
  • LEAP program in progress
• New EBIT margin guidance2 : -1%to 0% with revenue of c. €10.2bn considering 9M 21 performance (provision for onerous contracts) and ongoing pressure on supply costs, the SG 11.0-200 DD manufacturing ramp-up and Service margin normalization in Q4 21
• Strong momentum in renewables, with 17 GW in expected Offshore auctions in 2021 and 61 GW beyond, and SGRE well positioned to benefit
• • Order backlog of €32.6bn with €1.5bn in order intake in Q3 21

1. EBIT margin pre PPA and I&R costs, excluding the impact of PPA on the amortization of intangibles: €175m in 9M 21 (€56m in Q3 21), and the integration and restructuring costs: €149m in 9M 21 (€31m in Q3 21)
2. This outlook excludes charges related to legal and regulatory matters and it is given at constant FX rates as of end of Q3 21 for Q4 21. It does not include any impact from a potential lockdown of manufacturing activities or severe disruptions to the supply chain due to COVID-19 developments. EBIT margin guidance refers to EBIT pre PPA and I&R costs

© Siemens Gamesa Renewable Energy

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Q1Q2Q3Q4

2021 …..............................................................................................................

Key points

Implementing OneSGRE to reach sustainable profitability

Cross unit conventions driving cost out

• Knowledge transfer among 120 experts from all over the company results in 540 ideas for blades cost out

QMHSE organization simplified

• Same standards, same competences, and same interfaces to become OneSGRE, with specific focus on customer interface

New improvements derived from digitalization

• Optical blade lay-up tracking
• SiteEnrichment
• BidSuite
• TowerSelect

© Siemens Gamesa Renewable Energy

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