Siemens Gamesa has detailed its plans to “grow faster than the market” with a strategy prioritising profitability over volume during its virtual capital markets day.
The corporate strategy includes financial objectives that target an earnings before interest and tax margin pre-PPA and I&R costs in the range of 8-10%.
Siemens Gamesa said it expects to achieve these objectives by financial year 2023.
The turbine manufacturer said that a “refreshed corporate strategy” would “unleash the full potential” of the company by capturing growth opportunities in its profitable offshore and services businesses and driving a turnaround in onshore.
The strategy prioritises profitability over volume, cash generation, as well as efficiency and productivity in all operations, the company said.
Siemens Gamesa chief executive Andreas Nauen (pictured) said: “A new management team has been appointed to lead the turnaround.
“Additionally, through our new core shareholder, Siemens Energy, we will be part of an energy powerhouse, and we expect to be able to benefit from strong synergy potential.”
For fiscal year 2021, a transition year, Siemens Gamesa said it expects revenues of €10.2-11.2bn and EBIT margin pre-ppa and I&R costs in the range of 3-5%.
He added: “Public and government demand for clean energy solutions to climate crisis will drive continued investment in renewable electricity generation and we are well positioned to deliver value to shareholders and society by playing a full role in that process.
“It has been a tough period for the industry and the company, but I am confident we have all the right components in place. Our people, technology, scale and global footprint are strong foundations on which to build a long-term industry leader.”
Siemens Gamesa said it expects strong growth in the offshore and services markets over the next decade, while demand in onshore will remain solid.
Additionally, prospects are expected to be “buoyed” by the emergence of green hydrogen technologies in which the company expects wind to play a key role.
Nauen added: “We have a strong profitable competitive position in the growing offshore (number one) and services (number two) markets, and there is very significant potential in our onshore business that we will realise through the turnaround process now underway.
To drive the necessary turnaround in onshore Siemens Gamesa will focus on delivering “leading competitive technology”, including the 5X platform, reducing the complexity of its supply chain and “rightsizing” the structure.
In the offshore segment Siemens Gamesa will continue to develop its technology, delivering the new SG14-222 DD turbine.
In servicing Siemens Gamesa said it intends to address its own as well as multi-brand fleet opportunities leveraging on the recent acquisition of selected Senvion assets.