Siemens Energy Capital Markets Day 2025 Summary Company Overview - **Company**: Siemens Energy - **Event**: Capital Markets Day 2025 - **Date**: November 20, 2025 - **Location**: Charlotte, North Carolina Key Industry Insights - **Energy Transition**: Siemens Energy aims to be a reliable partner in the energy transition, focusing on combining manufacturing, technical expertise, and large-scale industrial systems design [5][4] - **Electricity Demand Growth**: Electricity demand is expected to grow at a sustained rate, increasing by approximately 50% over the next decade and doubling by 2050, driven by population growth and electrification [19][20] - **Gas Market Stability**: The gas turbine market is projected to maintain elevated growth until 2035, indicating a continued need for gas in reliable electricity supply [21] - **Grid Infrastructure Investment**: The expansion and stabilization of grids are expected to fuel demand for grid technologies, with transmission networks anticipated to double by 2035 [22] Financial Performance Highlights - **Revenue Growth**: Siemens Energy reported a 15% revenue growth in the last fiscal year, with a backlog of EUR 138 billion [14][15] - **Profit Margins**: The profit margin before special items is expected to be between 14%-16% by 2028, with a commitment to operational excellence and disciplined execution [23][60] - **Free Cash Flow**: Projected free cash flow of EUR 20 billion from 2026 to 2028, reflecting a strong cash conversion rate [56] Strategic Initiatives - **Elevate Program**: A strategic program structured around three pillars: transforming the energy world, strengthening resilience, and improving operational processes [24][25] - **Capacity Expansion**: Siemens Energy plans to invest around EUR 6 billion in CapEx over the next three years to expand capacities, particularly in gas services and grid technologies [37][55] - **R&D Investment**: The company intends to maintain R&D spending above EUR 1 billion per year, focusing on grid technologies and gas services [28] Safety and Employee Engagement - **Safety Performance**: Achieved a 30% reduction in total injury rate over the last three years, with a strong emphasis on a zero-harm framework [8][9] - **Employee Engagement**: Over 90% of employees express pride in working for Siemens Energy, with plans to continue building the workforce through apprenticeships and learning opportunities [39] ESG Commitment - **Emission Reductions**: Siemens Energy has achieved a 55% reduction in Scope 1 and Scope 2 emissions since 2019, aiming for climate neutrality by 2030 [38] - **Workforce Development**: Commitment to developing a motivated workforce with significant investment in training and apprenticeships [39] Market Position and Future Outlook - **Market Leadership**: Siemens Energy is positioned at the center of the energy transformation, ready to capture growth opportunities in the electricity and electrification markets [20] - **Long-term Growth**: The company expects to continue its trajectory of profitable growth, with a focus on operational excellence and value creation for stakeholders [23][62] Conclusion Siemens Energy is strategically positioned to leverage growth in the energy sector, with a strong focus on operational excellence, safety, and sustainability. The company's commitment to expanding its capabilities and enhancing its market position is expected to drive significant value creation for shareholders in the coming years.

Investor Day November 20, 2025 NPI:CA Forward Looking Statements This written presentation, together with the accompanying oral presentation, contains certain forward-looking statements concerning the business and operations of Northland Power Inc. ("Northland") that constitute forward-looking information within the meaning of Canadian securities laws. Such forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans. Readers are caution ...

Financial Performance & Targets - Siemens Energy delivered FY25 revenue of €39.1 billion, a 15.2% comparable increase from FY24[6] - The company achieved a profit margin before special items of 6.0% in FY25, a 500 bps increase from FY24[6] - Siemens Energy targets a profit margin before special items of 9-11% for FY26 and 14-16% for FY28[24] - Free Cash Flow pre-tax reached €4.7 billion in FY25 and is projected to be €4-5 billion in FY26[24] Market & Growth - Global electricity demand grew approximately 2x as fast as total energy demand in 2025[13] - The company anticipates approximately a 45% increase in global electricity demand by 2035[13] - Siemens Energy's order backlog reached €138 billion[6] Operational Improvements & Investments - The company achieved approximately a 30% reduction in the total injury rate (TRIR) between FY23 and FY25[5] - Siemens Energy plans approximately €6 billion in CAPEX investment for FY26-28 to support organic growth[50] - The company aims to reduce Scope 1 and 2 GHG emissions by 55% since 2019[56] Siemens Gamesa Turnaround - Siemens Gamesa is targeting to break-even in FY26 and achieve a 3-5% profit margin before special items by FY28[184]

Core Insights - Cullen Capital Management's SCCM Value Equity Strategy reported a gross return of 6.9% and a net return of 6.8% for Q3 2025, outperforming the Russell 1000 Value's 5.3% and the S&P 500's 8.1% during the same period [1] - Year-to-date, the strategy achieved a gross return of 13.0%, compared to the Russell 1000 Value's 11.7% and the S&P 500's 14.8% [1] Company Highlights: BorgWarner Inc. (NYSE:BWA) - BorgWarner Inc. reported a one-month return of -1.37% but a significant 27.70% increase over the last 52 weeks, with a market capitalization of $9.329 billion as of November 19, 2025 [2] - The company delivered second-quarter results that exceeded expectations, leading to a raised full-year guidance, and announced new programs in Europe and North America, including its first hybrid platform award [3] - BorgWarner raised its quarterly dividend by 55%, indicating strong cash generation and commitment to shareholder returns [3] - In Q3 2025, BorgWarner reported approximately $3.6 billion in sales, reflecting a 2% year-over-year increase, excluding foreign exchange [4]

Core Insights - Valeo has launched its Elevate 2028 plan, aiming for steady profit increases, higher cash generation, and a return to sales growth by 2028 [1][4][11] Financial Trajectory - By 2028, Valeo anticipates sales between €22-24 billion, an operating margin of 6-7%, and free cash flow after interest of at least €500 million [2][39] - The 2025 guidance for sales and adjusted EBITDA remains confirmed, with free cash flow before interest revised upwards to slightly above €550 million [3][30] Profit Improvement - Valeo is committed to a steady increase in profit starting from 2022, with a target operating margin improvement from 4.3% in 2024 to 6-7% by 2028 [14][25] - The company expects gross margin to remain above 19% of sales, aided by improved industrial performance and AI integration [13][12] Cash Generation - The company aims for a record-high free cash flow of at least €700 million before one-off restructuring costs in 2025, translating to over €500 million by 2028 after restructuring and interest [18][21] - Cash generation improvements are driven by reduced CAPEX and lower gross R&D expenses, with a projected €200 million decrease in R&D for 2025 [19][20] Growth Strategy - Valeo expects to return to sales growth in 2027, supported by a strong order book accumulated from 2022 to 2025 [22][23] - The cumulative order intake from 2022 to H1 2025 is 1.4 times its cumulative OEM sales, with significant contracts expected to ramp up sales [23][24] Technological Leadership - Valeo is positioned as a global leader in electrification, safety, and software-defined vehicle technologies, with a focus on expanding in key markets like China, India, and North America [11][30] - The POWER division is projected to see significant growth, with sales expected to rise from €10.5 billion in 2024 to between €10.5-11.5 billion in 2028 [25][28] Market Expansion - In China, Valeo anticipates a 40% growth in POWER sales from 2024 to 2028, leveraging its strong market position [24][32] - The company expects its sales in India to triple from €220 million in 2024 to approximately €700 million by 2028 [32] Sustainability Commitment - Valeo aims to achieve Net Zero by 2050, with significant reductions in greenhouse gas emissions planned by 2030 [42][43] - The company has been recognized by major ESG rating agencies for its sustainability performance, maintaining high ratings across various assessments [40][41]

Group 1 - Hybrid vehicles are seen as a bridge for automakers like Toyota while they pursue long-term electrification goals, being more affordable for consumers and more profitable for manufacturers compared to fully electric vehicles [3] - Honda Motor Co. is reducing its investments in electric vehicles by $20.7 billion to focus on launching new hybrid models, which are considered integral for its transition to EVs [4] - Toyota's $10 billion commitment to U.S. manufacturing is part of a multi-pathway strategy to invest locally and produce a mix of vehicles tailored to regional market needs, with hybrid vehicle sales increasing due to rising demand [5] Group 2 - Toyota sold over 1 million electrified vehicles in 2024, marking the highest sales in company history, with electrified vehicles accounting for 46.9% of its global retail sales volume in the first half of FY2025, driven by strong HEV demand in North America [6] - The largest investment among Toyota's five U.S. plants is $453 million in Buffalo, W.Va., aimed at increasing output of 4-cylinder engines for hybrid vehicles and sixth-generation hybrid transaxles, with production set to begin in 2027 [7] - Toyota is investing $912 million over the next five years in U.S. manufacturing to boost hybrid vehicle production, adding over 250 new jobs across five plants, as part of a larger $10 billion commitment to increase vehicle manufacturing in the U.S. [9]

Core Insights - Magna is expanding its operations in China with a new facility in the Jiujiang Economic Development Zone, Wuhu, to meet the increasing demand for electric drive systems, starting with Chery and aiming to serve additional automakers in the future [1][2] Company Expansion - The new facility in Wuhu will manufacture Magna's eDrive systems, which provide smooth, high-performance electric propulsion with a scalable architecture suitable for various battery electric vehicles [3][4] - The facility spans over 160,000 square feet and is expected to create approximately 200 new jobs upon reaching full production [4][9] Market Position - Magna's growth in China has been significant, with $5.6 billion in sales recorded in 2024, approximately 60% of which came from Chinese OEMs [5] - The expansion reflects Magna's commitment to supporting customers' electrification strategies and advancing sustainable mobility [3][5]

Core Insights - Schneider Electric is hosting the Innovation Summit North America 2025 to accelerate electrification, automation, and digitalization in energy technology, gathering over 2,500 business leaders and innovators [1][5] - The company emphasizes the integration of electrification, automation, and digital intelligence to enhance efficiency and sustainability across various sectors [2][4] Company Developments - CEO Olivier Blum highlighted the company's transformation to meet evolving industry demands and presented a vision for Schneider Electric as a key energy technology partner [3][5] - The EcoStruxure™ Platform, powered by AI, aims to create intelligent ecosystems that provide real-time insights and improve resilience and efficiency [4][11] Industry Context - North America is entering a growth cycle driven by AI workloads, re-industrialization, and transport electrification, necessitating significant infrastructure upgrades [5][7] - Schneider Electric's Sustainability Research Institute indicates that U.S. businesses face billions in costs due to grid instability, with a need to add 1,000–2,000 terawatt hours (TWh) of electricity per decade to meet rising demand [5][7] Key Announcements - Introduction of EcoStruxure™ Foresight Operation, an AI-powered platform for real-time optimization and predictive control in building energy management [8] - Launch of SE Advisory Services to assist organizations in navigating energy efficiency, sustainability, and technology challenges [16] Partnerships and Collaborations - Schneider Electric has partnered with various organizations, including Marks & Spencer, to enhance renewable electricity and efficiency programs across supply chains [11] - The company joined the Alliance for OpenUSD to advance digital twins and 3D modeling, supporting interoperable assets for various applications [11]

Core Viewpoint - The discussion centers around the potential overinvestment in AI infrastructure and the implications for companies like ABB, which is well-positioned to benefit from the ongoing spending in this area [2][4]. Group 1: Market Trends - There is strong activity in the data center segment, driven by AI buildout, particularly in the United States [3][4]. - A significant trend towards electrification and automation is observed globally, with electricity growing at more than double the pace of other energy sources [6][7]. - The future is expected to be electric across various sectors, including buildings, industries, and transportation, indicating a robust market for ABB [7][8]. Group 2: Company Positioning - ABB has a focused portfolio with three business areas: electrification, motion, and automation, which are aligned for long-term growth ambitions of 5% to 7% over a cycle [10][11]. - The company has updated its profitability targets, increasing operational EVA from a previous range of 16% to 19% to a new range of 18% to 22% [12]. - Despite the rapid growth of the data center market, it only constitutes 7% of ABB's overall business, allowing for diversification across other electrification markets [9].

is ABB CEO Morton Virod as the company wraps its capital markets day. Morton, it's great to have you back on the show. Welcome.>> Thank you. So I I do want to start with this this big question because it is dominating so much of what we're seeing and hearing across the market and across companies and industries and that is uh whether there's frothiness in all of this spending that we're seeing in AI, whether the return on investment is ultimately going to be worth it and whether all of this buildout into AI ...