Refused to commit on revenue split between large.

The HVDC is a huge opportunity in India but in our portfolio we are only focusing on VSC where you know within if you look at the ordering in India VSC doesn't seem to be that prominent. It is the other technologies which the country is more focusing on maybe because of cost because of anything. So when we look at the India opportunity are we running the risk of not addressing the entire market through specific technologies or when you mention evolving for the future do you think you would like to add some of the more technologies to address the broader market

Thank you for the questions. Very, very, very important one. So I think that's it's very important one because when you have a global company with global portfolio, you try to align these on a global perspective. So we do of course alignments with important Marks and India is definitely one of them. But we not cover any absolute the entire. So if you look to important elements like solar generation we are not in solar generation and for everything there we have a reason. So it's not because we do not want. We just see that the industry for solar generation is an industry that actually started in Germany 30 years ago. On the HVDC we are very much like here you saw we were the first HVDC project. That is something that I think you also mentioned in your question here again is a strategic decision The market for HVDC Global is immense especially because many countries in Europe for instance to a certain extent they are going to renew both big time mainly for energy security. These generate a lot of renewable integration where we believe not only but I think the industry believe that the best technology for renewable integration is VSC. VSC is more modern and is power electronic based. It's a technology that comes with a lot of features already embedded, like back start, that you know. HVDC is about connecting bulk transport of power but at the same time integrated the renewables with the intermittency and all the quality of the energy so VSC is the right answer for that. And because of the amount of projects in the world, we have to focus our resources globally and we focus on the VSC for India is not good news because India still have LCC. The reason for LCC is because there are many long lines high power because of the continental nature of the country so VSC maybe is not the adequate for that. The LCC is because of the losses that we have over there but we are looking forward to bring VSC to higher voltage levels. Where then in what completely unnecessary, right? There is just the reason for LCC is long lines high power but from the technology point of view LCC is a technology that's being phased out. So in our global strategy we focus on the VSC and when we come down to then of course we have to follow the global strategy because we are the VSC HVDC projects that we look at the pipeline on a global perspective, right, because there are so many.

FY25 was a great year in terms of transmission ordering flow. But as we enter FY26, the order of prospect is it as good as it was last year or do you think there is a moderation going forward?

I think that there was FY25 a peak of projects because of the pent up demand that we have been seeing. So the TBCB auctions came in 25 big time and of course we cannot grow the market you know 25- 40% every year. So there is a growth and then you know it's not flat but then you come more to normalized growth. I give you an example last year if I m not wrong we had 10 statcoms that we got more than 50% market share out of the 10, we got 5, something like that. This year we cannot have 15. You cannot execute also this so then we see that based on this 10 statcoms then we grow on the top of that. So we still of course see the growth of the transmission market going forward but more on a higher baseline that we had in FY25. Thank you.

You talked about a large global opportunity for VSC HVDC. So is there a large potential for export orders for VSC HVDC that you would be looking at and if you could quantify or give us some color on that.

Look I come back to the point where HVDC is a solution and there are many components there. So when I look at the Transformers for HVDC. We export Transformers and can also Transformers for HVDC application. And we did this in the past and we are looking forward for doing that. When we talk about the engineering of HVDC.Like you know the engineering the control and protection panels that you know control the complete system. These we do out of India, yesterday we were flagging off some panels for statcoms for Powergrid project. And we were showing that we are there doing HVDC for Norfolk UK. Siemens Energy won a project for HVDC in UK, for offshore connection and the engineering for the controlling portion, the intelligence. As you know HVDC has a lot of micro electronics. there is a lot of control and instrumentation around to make it happen. This will do complete out of India for export. So what we do not do in India. Coming again to the question that the colleague had. What we do not do is the Power converters because the power converters depend on the IGB's that's the core of the power converter and the IGBT comes from abroad. So there is no point to bring 80% from Germany to here, put this together send back.

Your presentation talked about an 8 GW incremental capacity for data center that's expected to come up by 2030. How can one look at your share/ wallet share of data centres. How large an opportunity can it be for you?

So depends how the data data centers developer is looking at. Today our share has been more on the substation. Because basically about the grid integration grid connection. You put a data center on Amazon and you have to connect to the grid. There is a need of substation and of course we can do the substation. Substation compared to the size of a data center investment is a small piece. The bulk of the data center investment comes from the racks and the you know processors from Nvidia etc. and we are just a general guy connecting the energy that's necessary, but it's not the major part of the investment. When we look at US, then we are not only doing substations but the complete gas based power generation. So there are data centres in the US today that are on the gigabytes scale. Then sometimes you need four large gas turbines. Then there's a huge business for us still for the data center is not much because proportionally it grows right and we can also do the power distribution. But if you ask me generically from the total CapEx. Eg. If you say Google is 1 billion you know we might be with a substation $20 million. That's about 20% just to give you a sense of proportion.

We have other incumbents GE Vernova, Hitachi announcing large capex programs for expansion of their HVDC facility. So in light of that how competitive we are in terms of pricing while bidding for orders, large orders here.

Absolutely. so we see ourselves very competitive on a global perspective we are market leaders in HVDC VSC and we are also competitive in India and we are not concerned about these announcements because we also announced we have as you know competence center. We are expanding our people. We have a localization of our power Transformers. That's a very important piece of an HVDC solution and then we talk about the localization of HVDC the missing piece - That's the IGBT so that the core of the power converters and any supplier will keep importing because there is no local manufacturing. So even if you put something over here you have maybe to do a kind of final assembling. But the real manufacturing is not there because the core is not there. So as long as we have local manufacturing of these micro micro electronics or power electronics sorry then you can of course start saying that I locally start manufacturing HVDC.

Can you tell us the timeline of commissioning of these capacities and are there enough enquiry buildup with you already for these capacities both on the domestic as well as on the export.

Yeah so on the timelines the fact we are now so in Kalwa, the Transformers we start earlier and we are in the full swing in the construction so we expected that this factory should be ready end of 20 26 beginning of 2027. So it depends very much because civil construction, all these things you cannot be super precise but will be from half of 2026 to beginning of 2027. For switch gear we just broke the ground another day so we are starting the demolishing. This should come also along the end of 2026 along 2027 so this is more or less when they will be made available. And in terms of pipeline you know transmission locally and globally whatever capacity you put available it's immediately demanded. So we see so many projects coming up on the TBCBs in India. That we are feeling the effect and filling the factories with all these orders. So capacity is not an issue, capacity is actually something that we have to manage due to the excess of demand and that's why we're expanding

How confident are you on the pricing of the Transformers and power transmission related components given the way that every player is now expanding. What would be your view of the entire cycle by FY27 or maybe by FY28?

We see the price keeping on the same level. In spite of the expansions that we see, the demand is still very high locally and globally because the energy sector is expanding big time. The capacities are coming along to support India so that India does not have a shortage of equipment but still there is an opportunity for the price being kept up because the demand will be high for the years to come. We cannot predict for how many years because nobody knows why the world is so unpredictable nowadays.

Over the next one to two years which are the VSC HVDC projects that you see coming up for award and roughly what would be the size of the opportunity for Siemens Energy here.

So as these renewable evacuation grows as per the national transmission committee. So these numbers we actually get from the government. so this is where is our source of information for our market analysis, we see one to two projects of HVDC per year. Most of them should be LCC but we see maybe one project of VSC every second year. There are some discussions on Mumbai because Mumbai needs new feeders for the city, so may become another one next year but you know the predictability is difficult. So we know that will come but we do not know exactly when and sometimes come a lot of projects at the same time. So we are seeing that the VSC will be part of this story and we also believe that step by step India will migrate from LCC to VSC as we see other countries also doing.

What is the size of the steam turbine flexibilization opportunity especially as the technical minimum has to be brought down for the Thermal power projects.

There is an important opportunity and this opportunity happens on the digital space. So just shortly on the techniques. You know the renewables – the sun goes up sun goes down, there is wind there is no wind. So the Thermal power plant has to step in and step out. Because otherwise you have a gap of energy or have an excess of energy. And the thermal power plants basically older coal power plants they are not so quick. So you have to do some adaptations over there, sometimes a mechanical adaptation where you do a kind of modernization of the mechanics of the turbine but the main piece is on the flexibilisation on the software side that we can accelerate the ramp up and ramp down. So that you can offset the variations of the renewables. In terms of volume, this is not so if I put it against our order intakes. This is not a big number because normally more software and some instrumentation that we do.

With your order backlog and the growth visibility that you have how should we think about the scope of operating leverage in your business. In terms of employee and other expenses over the next 2-3 years.

So in terms of scalability definitely with the volumes coming in the proportion of the employee cost will not go in line with what is it right now. So we'll have equals of scale coming in. So that would be a quick answer to your question and also a lot of digitalization will take place. So it's not just people but it's also the digitalization where there's a high accent from the company globally and locally as well. So short answer is it'll actually come down in due course but not in a significant manner but definitely the proportion will be less.

Can you talk about the new products that you want to bring to India from localization perspective in next two years and what are the products that you see becoming competitive in your global factory model to be manufactured out of India.

So basically from our entire portfolio that I have shown, the only portfolio elements that we do not manufacture in India I would say that's the gas turbines for the reason that there is not enough demand for that and so does not justify localization of this product and the second portfolio element is the electrolyzers for green hydrogen where we see this as a potential for the future. But not yet with enough volume to justify a factory. We have a factory for electrolyzers in Berlin where we have one gigawatts of electrolyzer PEM. This factory can be scaled up to five giga watts if I am not wrong. And we're still fighting to fill the first gigawatt. That's why green hydrogen is definitely part of the future equation, we have invested big money on this in terms of R&D and also factory. But we see you know that the reality on the ground is that ramp up is not at the speed that we have expected. And normally green hydrogen is more ramping up where we have a regulatory obligation. Because the economics are simply not there.

On the transmission side we've seen more opportunities on Interstate. Are you thinking anything emerging from the intrastate side as well.

Absolutely, so we see that in the Interstate we see a lot of development we are seeing a lot of 765 KV lines coming to evacuate all this power. The electron has to come from Rajasthan down to the factory to consumption. So you cannot have a gap in between because otherwise the evacuation is not complete and I think on the state level expansions and we are actually seeing. Even statcoms coming in Maharashtra, we see a lot of things coming in Gujarat we see just approved an offer yesterday for Kerala. So we are seeing projects coming up in a bigger time across the States and this has to catch up so that you can evacuate the power down to the consumption to the load.

You said 23% of your revenue is exports. Would it be fair to assume that bulk of your exports would be a services that you're doing here? What are these exports this 23% of your revenue mix?

The composition of exports on the product I think mostly is in the power transmission space.

Next how much was this strength two years back and how much are you going to planning to hire in the next two years? On the total RND

So for us there are few R&D that we do but there are also a lot of engineering for project execution. two year ago would be somewhere around 600 to 750 in FY23

In the first slide on transmission you mentioned transporting and storage of energy. So what are you doing in storage specifically?

Storage for us is more an application. We are not a play on the storage across the border like many companies do so. we are not in large BESS. Storage more on the grid stabilization because we have some projects where we combine storage with syncon with statcom to secure the stabilization of the grid So we are more a niche player on the storage not a major player on the storage. Reason for that storage as you know 60-70% of the value comes from the batteries. We are not a battery manufacturer. And that's why you know the value that we can add is very low.

Do you see storage cannibalizing transmission spends?

No. I think storage is actually complementing the transmission in terms of stabilization because storage can stabilize the grid and I think is a very important compliment for the renewable story where you have a lot of suppliers of renewable in times when you do not have the consumption and you have to put this energy somewhere so that you can transport it forward. Actually, the storage optimizes and make the renewable generation more efficient. Because you can have more power accumulated to use the lines and also increase the efficiency of the power transmission grid because you do not have them sub utilize/ underutilized the grid because you do not have power to transmit. I don't see. I think the demand for power transmission is there and will be there going forward.

If I just look at the NEP plans there are three components. One was substations, one was transmission lines and then there is HVDC. There's a significant step up from 22 to 27. And then again a step down in terms of transmission lines and substations. The data kind of implies that not many additions are going to come in the substations and then the transmission lines. So in that context how do you look at the HVDC portfolio in your transmission revenue vertical

We have said these before, so we had a big growth for Transmission from last year to this year and this growth will still be there but not in the same magnitude because you know this will be more growing at a reasonable number of three, four or five% and it goes forward because we expanded the generation anyway. So actually will not grow so big but will keep growing forward. When we look at the HVDC, definitely HVDC is an important element. India is also looking to other portfolio solutions. This is also public thing India is looking at growing the AC lines to 1200 KV. So there are a lot of 765 right now. So at the end of the day the grid is a combination of several voltage levels and several technologies to suffice the demand. HVDC, we are in the market. As I have said and we are focused on the VSC and for every VSC that comes up in the market, we will be participating and fighting to win.

With this ISTS (which is the Interstate transmission) waiver going away. Are you seeing any pullback on the Interstate transmission Capex from here on just because of this new policy.

Well I wouldn't see for the reason that you know is that the demand for electricity will not down but only go up as I have said and the waiver is a facilitator or incentive to accelerate the renewable implementation. But I think also renewable is becoming so competitive because these incentives are also not forever, thy are just there to get traction and when you get tractions then you do not need them anymore. Irrespective of incentives or not, the demand for electricity will be be there. So then you will need generation and transmission. There is no other way. So it's not because of these that the growth of India will not happen. Actually, the growth of India will push the growth of the power sector.

How do you see the power demand sustaining going forward. I'm sure there will be a period of high growth but what is the kind of view on the medium and longer term on the power demand.

The demand is absolutely sustainable as long as the economy keeps growing as it's growing. The middle class keeps growing their income and getting more disposable income to invest and buy things driving the industrialization of the country. if I look at India this cycle should be long. As long as nothing unexpected happens. I'm just put this disclaimer because nobody can say what happens in the world next year. There are wars, there are tariffs. So then we have also to be careful that if nothing comes from the hit you from the side right. The sustainability of the demand should be forward because this is supported by the fundamentals of the country.

What is our capability and strategy to participate in the Indian nuclear expansion program that has been recently announced.

The strategy so as I have said for the nuclear all participation is on the steam island we are not in the reactor side. And we are market leader on this Large steam turbines globally. Also in India as I said here most of the fleet of steam turbines in India belongs to our technology. For the next wave of power generation that is nuclear we will be looking for keeping our participation with the large steam turbines. Are looking forward for the discussions that are happening right now. How the regulation will be sorted out. The thing on the private participation. But they are also the top on the Civil liability as you know and these are very fundamental elements to be solved so that we can participate in a Safeway in this market and if these things are sorted out as I believe they will, then we will have a play over there.

Just wanted to understand your outlook on the steam turbine for industries and gas turbine. The domestic market has been kind of slowed down, the CapEx has slowed down and we can see the growth was only 11% year on year for you in generation? And I'm assuming those would be large service portfolio also in that revenue so just wanted to understand the outlook which industries you're getting traction if at all and will this be be double digit there would be improvement in growth?

Thank you for the question. So in the industrial steam turbines that we do in Vadodara, we see that it is a very different market from power transmission. Power transmission going through a boom because of renewables and everything. Steam Turbines goes more along with the industrial sector development and there we see an average growth from 4 to 6% that goes along these industries. So there is a consistent demand for steam turbines and that's why we have a very good load and a very good and stable business. Over there the main verticals that we see is basically cement and steel. Because you know expanding infrastructure in this country as it happen. We also see the pulp and paper expansion, sugar and ethanol had a peak with all the blending that happened. Now slow down a little bit if either keeps a high ambition on blending more ethanol to the gasoline then of course you need more mules to produce more ethanol and then push the long again through Industrial turbines. Fundamentals say metals, cement sugar ethanol, pulp and paper.

Is my understanding correct that the 20 billion largely coming from the power generation services and second are we doing any third-party service how has been the growth in the service business and also the profitability margins in service business.

So basically the service is coming from the generation side predominantly I think your assumption is correct to that extent and then it is of course on the back of the installed base so no third party but more on our install base where we getting the service business and then there are also those additional ones which comes from mods and upgrades as well which is what Guilherme was referring to because there are also upgrades on aged fleet as well which gives us an opportunity to bring in the service component along with the spares which acts as a kicker for us.

Medium to Long term what is the opportunity on statcom and facts. How's the market? Will this be significant contributor to our intakes also?

Statcom is an important contributor you know because of the renewables start consumer be demanded if I'm not wrong with the number from CEA that 75 statcoms are in the plan. Last year we had around 10. This year as per the plan we should have another 8-10 and this should go forward like that. Maybe we can consider 10 per year so keeping the same success that we had start keeps being a very important element to us. Where we have been successful, we have a good technology, we are competitive so this will be the major contributor.