The FY20 results reflect the continuing slowdown in the Indian market and cost overruns on project execution in Northern Europe, all accentuated by the impact of Covid-19.
The global pandemic reduced revenues by c. €1bn, due to lower commercial activity and delays in project execution, and Covid-19 also impacted in EBIT pre PPA and before Integration & Restructuring costs by €181m.
To address these challenges, the company’s new management team, led by the CEO Andreas Nauen who was appointed in June, presented a new business plan for FY21 - FY23 with the goals of turning the Onshore business around and of maintaining profitable growth in the Offshore and Service businesses. Siemens Gamesa maintains its commitment to prioritize profitability (over volume), cash flow and sustainability.
Siemens Gamesa logged an order intake of €14,736m (+15.6 y/y) during fiscal year 2020, ending with a backlog of €30.2bn. In the three months to September 30, Siemens Gamesa reported an EBIT pre PPA and before Integration and Restructuring costs of €31m, a margin of 1.1% on €2,868m in revenues. The company reported a decline in revenues for FY20 of 7% year-on-year to €9,483m, with EBIT pre PPA and before Integration and Restructuring costs of -€233m, a margin of -2.5%. Net losses amounted to -€918m.
In the Offshore segment the company has doubled order intake year-on-year to 4.1 GW. This increased the backlog to 6.7 GW, plus 9.3 GW in conditional agreements.
The company signed 2.7 GW in Onshore orders in Q4 20, partly recovering the business it had lost in the previous quarter and enabling total Onshore order intake in FY20 to reach 8.1 GW (-13.5% y/y).
Service was the fastest-growing division in FY20, supported by the assets acquired from Senvion. Order intake increased by 53% y/y to 4,152 MW during the year, increasing the fleet under maintenance by 23.7% y/y to 74,240 MW. As a result, Service now accounts for one-half of the company's total backlog.
Siemens Gamesa has set targets for FY21 through FY23. The company expects to achieve between €10,200m and €11,200m in revenues in FY21, and faster-than-market growth through FY23. The EBIT margin pre PPA and before Integration & Restructuring costs will be between 3% and 5% in FY21, reaching a margin between 8% and 10% in FY23.