GT Customer

Understand- siemens-energy.com

ing
Essentials
Training Transcript
Welcome to the Course:
Gelem Lluberes: Hello dear GT Colleagues. I’m here with an exciting opportunity for
all of us to learn and to adapt to an ever-changing market. In our journey towards
excellence: understanding our market, our customers, the environment they operate
in it is not just important, it becomes essential. This is why we have developed a GT
specific training from setting financial targets to crafting a customer specific value
proposition, this program covers it all.

We will also learn effective strategies on how to deliver the message, how to convey
this value proposition or as you might call it, the pitch, so that both our internal
stakeholders and our customers are able to grab and to really perceive our unique
value proposition.

The entire program can be completed at your own pace. It includes short videos,
exercises, and use cases specific to our customers. And a small final test to make
sure that you can apply everything that you’ve learned.

Whether you are in front of our customers or anywhere else in our organization, your
role is key to understanding what is the value we can provide to our customers, help
them solve those challenges, and succeed together.

Let’s use this opportunity to deepen our understanding and improve our offerings so
that we can together continue to make an impact in the energy markets. Remember,
what we do gets us a seat at the negotiation table. How we do it makes us winners.

Customer Classification
Saskia Baumann: Hi! I’m Saskia.

Maria Rueda And I am Maria

Saskia Baumann: We are part of the GT Sales organization

Maria Rueda And welcome to the training GT Customer Understanding Essentials

Saskia Baumann: Hello and welcome to our first video of our learning journey. In
this video we want to speak about different types of Siemens Energy customers and
their ways of doing business.
Maria Rueda Customers prioritize different aspects of what we offer when making
their decisions. The Siemens Energy customer portfolio has grown and changed
over time. New groups of customers are asking for our products, solutions, and ser-
vices. Although the core technology might remain the same, different customers
value different aspects of our offerings.

Saskia Baumann: Throughout this training program, you'll learn how to meet the
needs of both traditional and new customers. It's essential to understand key aspects
of our customers, such as: How do they generate business?

Maria Rueda Why do they choose us as a partner?

Saskia Baumann: How do they utilize our offerings?

Maria Rueda What are their objectives and targets?

Saskia Baumann: And how do our offerings help to achieve them?

Maria Rueda For industrial customers, the latter question simplifies to:
“How do they earn money with our offering?”. Let's explore a structured approach to
understand all our customers better.

Saskia Baumann: State-owned and government-controlled companies such as utili-

ties have been typical customer groups for Siemens Energy over the years. They
play a significant role in many countries, managing energy transmission and distribu-
tion grids.

Maria Rueda Siemens Energy has longstanding business relationships with these
companies, often sharing a common technical language.

Saskia Baumann: They employ experts who engage in detailed discussions about
regulatory requirements and technical advantages of our solutions.

Maria Rueda: Navigating the decision-making processes with these customers can
be complex. Being capable of guiding this process among the stakeholders involved
on both the customer and Siemens Energy sides remains our significant strength.

Saskia Baumann: Managers in these companies oversee spending public funds,

leading to complicated tender processes in many jurisdictions.

Maria Rueda: These processes can be difficult due to political involvement and reg-
ulations, sometimes causing delays.
Saskia Baumann: Government-owned energy transmission companies often priori-
tize targets aligned with broader socio-economic objectives. These include ensuring
universal electricity access, reducing carbon emissions, boosting renewable energy
usage, and fostering innovation.

Maria Rueda: These state-owned companies often do not aim at maximizing their
profits. Instead, they try to reach at least a break-even point or cover the financing
costs of their assets. This approach is frequently influenced by European Union reg-
ulations.

Saskia Baumann: Another customer group showing increased demand for our prod-
ucts, solutions and services are commercial, privately-owned companies.

Maria Rueda These companies purchase our products for their industrial operations.
For instance, industrial parks providing energy to tenants or tech giants like Google
and Microsoft running datacenters.

Saskia Baumann: One might wonder why these companies opt for Siemens Energy
products instead of utilizing services from third parties, such as state-controlled grid
operators.

Maria Rueda These companies balance a mix of long-term strategic goals and
short-term financial targets.

Saskia Baumann: Analyzing their shareholder structure can provide initial insights
into why some lean towards maintaining tight control over their "core processes,"
believing it offers a competitive edge in the long run.

Maria Rueda Others lean towards outsourcing the energy transmission to minimize
capital investments. Regardless of their strategies, affordability remains crucial. Re-
viewing the annual reports of our customers and staying updated on their investor
communications can provide significant advantages for us.

Saskia Baumann: Another example involves customers classified more as privately

owned investors. These customers typically have highly centralized decision-making
power, and control. Ownership is often concentrated among one or a few owners.

Maria Rueda: These investors, typically high net-worth individuals or (with) invest-
ment funds have chosen to invest their funds in a project with the expectation of re-
ceiving favorable returns.

Saskia Baumann: Their focus is to structure the investment to generate the highest
possible additional wealth as quickly as possible. They are driven by so called “finan-
cial engineering”. As a result, detailed technological discussions with top managers
of such companies may be limited.

Maria Rueda: However, this should not be viewed negatively. Instead, it highlights
the significance of effectively communicating the ways in which our technology im-
proves capital efficiency and how our financing solutions can optimize their cash
flow. If we can show for example how they can reduce the amortization time for their
invest(ment), they will most likely appreciate any technical solution we suggest.

Saskia Baumann: These examples illustrate three distinct customer types for
Siemens Energy Grid Technology business.

Maria Rueda: To effectively engage with them, we must understand their unique mo-
tivations and communicate our value proposition accordingly.

Saskia Baumann: Our goal is to capture a significant portion of the market by secur-
ing the right projects with all customer types. Therefore, we want to analyze further
elements of our customers.

Maria Rueda: Our journey begins with understanding the bigger picture, of what
drives a company. This means understanding the ownership structure of the share-
holders and their possible future targets for the company.

Saskia Baumann: Furthermore, we analyze the extent to which the customer priori-
tizes strategic, long-term objectives such as growth, technology advancement, mar-
ket share expansion, innovation, social responsibility, and talent development. Alter-
natively, do they lean towards short-term goals, prioritizing profit generation and
cash flow?

Maria Rueda: Subsequently, we delve into the financial aspects of our customers.
This involves examining fundamental financial documents such as the profit and loss
statement, balance sheet, and cash flow statement, and then contextualizing them
with key financial ratios.

Saskia Baumann: We then analyze the business model and strategic landscape of
an individual customer.

Maria Rueda: In the next sequence we describe the specialties to be regarded in

regulated markets of Transmission and Distribution Service Operators.

Saskia Baumann: Bringing together all the components of our analysis involves
crafting a compelling value proposition. This entails understanding how we can gen-
erate value for our customers.
 Maria Rueda: Lastly, we learn how to present this proposal to internal stakeholders,
who represent our investors at Siemens Energy.

Saskia Baumann: Enjoy the further learning – yours Saskia

Maria Rueda: And Maria

The Bigger Picture how our Customers Make

Money:
Saskia Baumann: Hello and welcome to this video on the basics of financial analy-
sis. In this video we discuss:
 What facts about my customer's finances do I want to know?
 Where can I find this information and how can I use it for my customer knowl-
edge?

Maria Rueda: We aim to understand the factors behind our customers' success, in-
cluding their short-term and long-term goals. While some customers consistently pur-
chase our products, allowing for predictable annual sales planning, others annually
reevaluate their needs from us.

Saskia Baumann: Some may have the necessary cash and prefer showing assets
on their balance sheet, leading them to purchase from us. Others, facing cash con-
straints and desiring a streamlined balance sheet, may opt for leasing instead.

Maria Rueda: ...and some don't want to buy anything from us but want to pay us for
availability or performance. How can we explain these different strategies when deal-
ing with Siemens Energy GT?

Saskia Baumann: In this video, we look at what makes a company successful in the
short and long term and we learn where to get the most important information quickly
and easily.

Saskia Baumann: What makes a company successful? In other words, what should
be the targets of a good company?

Maria Rueda: A good company should generate profits! And, they should have suffi-
cient cash and cash-flow to not run out of money. A good company also needs good
products or services. Also, they need a good sales team to understand their markets
and customers, and a savvy technical team to be good. Quality would be another big
one.

Saskia Baumann: And there are many more items to be named, such as: production
capabilities, research and development, processes and structures, profitability, finan-
cial stability, sufficient equity, secure level of debt and many more.
Maria Rueda: To complete the picture, we also need a strong foundation built upon
the employees and their skills, ingenuity, and talents.

Saskia Baumann: We refer to this as “the house of a successful company”.

The right pillar represents a company's financial objectives, while the left pillar out-
lines strategic market goals, indicating the company's market positioning.

Maria Rueda: Companies, including our customers, need to strike a balance

between these objectives because they interrelate. Investing more in developing in-
novative products and services depletes cash reserves—represented by the right
side in our illustration.

Saskia Baumann: However, insufficient investment in the future of the business,

shown on the left side, risks compromising long-term financial performance, includ-
ing profits and cash flow.

Maria Rueda: Achieving this balance is difficult. Actions taken on the left side, aimed
at investing in the business's future, often negatively affect the right side, reducing
financial metrics like cash flow and profits, especially in the short term.

Saskia Baumann: The strategy for balancing these aspects is determined by the
"roof" of the house, representing the company's owners or shareholders. They set
the strategy based on their vision for their investment. While some investors priorit-
ize long-term, stable development of the firm, others focus on rapid growth and im-
mediate quarterly results.

Maria Rueda: Let's take a direct look at how the ownership structure of our cus-
tomers influences how they work with us at GT. We find three basic types of owners
with their own strategic goals among our customers:

 The state (such as a governmental investment fund or a state-owned bank)

 Strategic investors with a significant shareholding
 Financial investors with a small shareholding

Saskia Baumann: The state not only pursues financial goals, such as profit, but also
provides long-term infrastructure, such as an electricity-grid for the population and
industry. They exert influence by frequently appointing politicians to the supervisory
board. The rigid budget-driven approach prioritizes predictability and stability over
profitability.

Maria Rueda: Strategic shareholders are typically interested in the long run develop-
ment of a company. They shape the strategic targets, often they have a seat on the
supervisory board to control the firm.

Saskia Baumann: Financial shareholders could be private individuals or financial

investors. They are often very much focused on short term results such as dividends
and stock performance. In our picture of a successful company, their focus would
lean slightly more towards the right side.
Maria Rueda: Let's look at real case: The IT company WIIT. This is a European
provider of data centers and cloud services. We chose this company because it
largely matches our customer profile. Moreover, the company is listed since 2019 on
the Milanese stock exchange. Therefore, it is required to disclose a lot of facts and
figures about its business.

Saskia Baumann: We can quickly find some basic information about the company
on the internet. In principle, most companies publish figures and data officially, but
(the) most comprehensive data is available from listed companies. These firms often
have an Investor Relation section on their website. You can quickly find useful infor-
mation there. Be aware, that any reported data is always lagging 3-15 months be-
hind.

Maria Rueda: Sometimes the figures are very detailed, but sometimes companies
only publish the bare minimum. In Europe, even unlisted companies must by law
publish some key figures. Banks, industry associations and the media also report on
companies.

Saskia Baumann: However, the smaller the company, the less information is freely
available. And the larger the company, the less detailed the figures. In the case of
this company, the data situation is good, so we have a glance at WIIT’s “directors’
report.”

Maria Rueda: The first thing we want to know is who owns the company. Is it the
state or does it have a strong strategic investor or more short-term financial in-
vestors?

Saskia Baumann: In this case, there is one dominant shareholder who also hap-
pens to be the founder and the CEO. All in all, he controls 55% of the shares in WIIT.

Maria Rueda: This indicates a relatively stable ownership structure. No other com-
pany or investment fund could easily take over this company against the will of its
current leadership and main shareholders.

Saskia Baumann: Next we want to understand the size of the firm. The first indica-
tion is the so-called market capitalization: How much would it theoretically cost to
buy 100% of WIIT’s shares and then own the firm.

Maria Rueda: The report states that WIIT has issued roughly 28 million shares. We
then do a quick internet search for WIIT’s current share price, which was in March
2024 around 17 EUR.

Saskia Baumann: Multiplying 28 million shares with 17 EUR yields a market capital-
ization of 476 mil EURO. Just for the record: Siemens Energy had in March 2024 a
market capitalization of 12.5 billion EUR.

Maria Rueda: To dig a bit deeper, we have a quick look in any major transactions
WIIT has undertaken in the last 24 months. The director’s report’s section on “Gover-
nance and significant events” lists several acquisitions. WIIT has bought smaller
companies.
 Saskia Baumann: This was quick initial analysis which took us just a few minutes to
conduct. But what does this mean for us, for GT if we were to consider a potential
business relationship with WIIT?

Maria Rueda: The ownership structure is straight-forward with the founder still being
the main shareholder and the main decision-maker. As long as he remains in charge,
we can assume that this company continues its long-term growth strategy.

Saskia Baumann: We also do not find other significant shareholder who might to
sell their shares in the short run to the highest bidder.

Maria Rueda: The company's size and history of ambitious growth suggest potential
interest in our offerings. Their significant cash expenditure on mergers and acquisi-
tions might make them prefer operational expenses (OPEX) over capital expendi-
tures (CAPEX) to free up cash for further M&A activities.

Saskia Baumann: If we recall the image of the house of a successful company, we

recognize that this firm tends to place more emphasis on long-term growth than on
short-term profit. That's why they're willing to allocate almost all their cash flow from
operations towards growth initiatives.

Maria Rueda: This initial analysis provides a first overview of the customer. To gain
a deeper understanding of the firm, we need to examine its annual statement closely.
In the next video, we'll delve into the balance sheet and the profit and loss state-
ment.

Strategic Finance Exploration:

Part 1: The Balance Sheet and P&L Statement

Saskia Baumann: Hi there! Welcome to our next video! We're talking about finance.
We'll show you how analyzing customer's financial data can help you understand them
better.

Maria Rueda: We'll start by looking at two important documents: Profit and Loss state-
ments and balance sheets. Learning to read and understand these documents is key to
knowing how our customers earn money.

Saskia Baumann: Plus, it will help you see how our products and solutions affect our
customer's financial situation. Let's get started!

Maria Rueda: All the numbers we're discussing can be found in the customer's annual
report.

Saskia Baumann: You can find this information in their investor relations section on
their website or in public corporate databases in their country.
Maria Rueda: But remember, data for very small companies might be hard to get or
not very detailed.

Saskia Baumann: And for big companies, while they have a lot of data available, it
can be too general, which makes analysis tough.

Maria Rueda: Now, let's dive into the Profit and Loss statement. This document shows
a company's income, expenses, and profits over a specific period, like a month, quar-
ter, or year.

Saskia Baumann: It gives you a quick look at whether a company is making money or
not and helps pinpoint where they're doing well and where they might need improve-
ment.

Maria Rueda: Imagine you're working with a customer who presents the following
Profit & Loss statement. You don't need to be a finance expert to understand it. Just
using some basic numbers and ratios can give you insight into how customers make
money. This can be a great starting point for your conversations with them.

Saskia Baumann: First, let's look at their revenues. It seems they've decreased from
2021 to 2022, which might raise concerns at first.

Maria Rueda: But when we subtract costs that are just passed through, we see that
the net sales from their core operations have in fact increased. This is likely a more
relevant number for our customer to manage their business.

Saskia Baumann: Next, let's analyze their costs, with material costs being our focus.
As a percentage of net sales, these costs have gone up from 59% to 69% in 2022.

Maria Rueda: Normally, we'd expect this percentage to decrease with increased
economies of scale. Discussing how our offers can help them control these costs could
be a next step. Further we would elaborate with the customer possible ways how to
reduce this cost with the right mix between CAPEX and OPEX. You want to ensure that
we stay in line with the already identified balance between short-term and long-term
targets of the customer.

Saskia Baumann: Also, the depreciation has increased by 37,3 Mio year over year.
This had a significant impact on the net profit.

Maria Rueda: Other operational costs, like the rise in personnel expenses, could also
be worth discussing further.

Saskia Baumann: At first glance, net profit seems to have improved from 165 million
to 236 million euros year-over-year. The net-sales margin is calculated as net profit
divided by net sales. This ratio has actually decreased from 10.1% to 9.5% between
the two years.

Maria Rueda: So, it seems the additional sales weren't as profitable for the company.
Let's sum up our initial findings from the analysis. First, about two thirds of sales are
simply passed through and don't add to the company's profits. This might make the
company seem larger than it really is.

Saskia Baumann: Next, we noticed a drop in profitability due to a sharp increase in

material costs. This could be something worth exploring further with our customer.
Maria Rueda: Another point is that depreciation has gone up. This is likely because of
additional investments in CAPEX. It'd be great if we could also spot their spending in
our sales figures.
Saskia Baumann: Lastly, there's been a rise in personnel expenses. This could be a
good starting point for discussing new offerings with the customer.
Maria Rueda: Now, let's shift our focus to the balance sheet. Unlike the Profit and Loss
statement, which tracks a company's financial performance over time, the balance sheet
offers a snapshot of its financial status at a particular moment.

Saskia Baumann: This sheet details the company's assets, liabilities, and equity. By
looking at the balance sheet, we gain understanding into the customer’s liquidity, sol-
vency, and overall financial well-being.

Maria Rueda: Despite the balance sheet numbers being summarized, there are still
some intriguing details to uncover. Let's examine the equity, which rose by 251.8 million
euros over the last year.

Saskia Baumann: Interestingly, the reported net profit for the same period was only
236.1 million euros. So, it seems an investor must have infused capital into the com-
pany. And indeed, the report notes confirm this.

Maria Rueda: The equity ratio, showing the relationship between equity and total capi-
tal, has remained nearly constant, with a slight uptick from 18.3% to 18.4%. This ratio
indicates a company's financial resilience. Considering the stable nature of energy
transmission in a regulated grid, this figure reflects a solid financing structure.

Saskia Baumann: Lastly, let's examine the company's assets. Overall, they've in-
creased by over 1.2 billion euros, with the largest portion allocated to long-term assets.
This aligns with our earlier observation from the Profit and Loss statement, showing ad-
ditional investments in CAPEX.

Maria Rueda: According to the notes, we find that the company's cash position has
risen from 2.3 billion to 2.9 billion euros. This suggests that the company could poten-
tially finance larger investments using cash. So, how can we at Siemens Energy use
this information to achieve better results for our customers?

Saskia Baumann: Understanding both the Profit and Loss statement and the balance
sheet allows us to tailor our offerings to meet our customer's specific financial require-
ments.
Maria Rueda: For instance, we can address whether the customer is more concerned
about capital expenditures (CAPEX) or operational expenditures (OPEX) and assess
their ability to fund significant investments with cash.

Saskia Baumann: Examining their cost structure can also indicate their interest in
adopting new technologies and value delivery methods, like performance and availabil-
ity-based contracts.

Maria Rueda: Let's sum up what we've discovered about our sample customer:

Saskia Baumann: The company is profitable, but its profitability has declined in the last
year.
Maria Rueda: Material costs appear to be a key factor driving their business success.
Saskia Baumann: Substantial investments have been made.
Maria Rueda: They're in a strong cash position.
Saskia Baumann: The equity ratio indicates a healthy company. These findings lay the
groundwork for direct discussions with our customer. Based on our analysis, we can
explore potential OPEX reductions through investments in modern equipment, coupled
with digital and service solutions. Understanding our customer's financials is essential
for understanding how they make money. Utilizing insights from the Profit and Loss
statement and balance sheet allow you to customize your strategy to fit their unique re-
quirements.

Maria Rueda: Therefore, when preparing for a customer meeting, remember to dig into
their financials. It could be the gateway to discovering fresh opportunities and fostering
enduring partnerships.

Part 2: Cash-Flow and the ROCE Driver Tree

Maria Rueda: Hello everyone! In this video, we'll explore two more critical aspects of
understanding how customers generate revenue — the cash flow statement and capital
efficiency.

Saskia Baumann: Cash flow and capital efficiency play pivotal roles for companies
striving to achieve sustainable growth and maximize returns for their investors.

Maria Rueda: But why are these aspects so important? And how can we gain deeper
insights into our customers by examining these figures?

Saskia Baumann: Let's jump right into it and explore it.

Maria Rueda: Alright, let's break it down. Capital efficiency, as measured by Return on
Capital Employed (ROCE), gives us valuable insights into how effectively a company is
utilizing its capital to generate profits.

Saskia Baumann: Essentially, it informs us about how efficiently a company is leverag-

ing funds to increase its earnings. This aids investors in evaluating a company's prof-
itability in relation to the capital they've invested.
Maria Rueda: To gauge capital efficiency, one commonly used ratio is Return On Capi-
tal Employed – abbreviated ROCE.

Saskia Baumann: Let's examine how ROCE is calculated for a customer. While there
are various methods for calculation, they all adhere to a common principle: we use
some form of profit as the return figure and divide it by the capital employed – an ad-
justed representation of the capital invested in a company.

Maria Rueda: Let's begin with the profit aspect. Typically, the earnings before interest
and taxes also called EBIT is used as the profit measure. Sometimes taxes are factored
in, but for simplicity, let's leave out that detail for now.

Saskia Baumann: We can obtain the EBIT from the Profit and Loss statement we dis-
cussed earlier. While it might not be explicitly stated, your financial expert can assist
you in estimating it.

Maria Rueda: We then divide the profit by the net capital employed. The net capital em-
ployed is determined by adding the long-term assets of the customer to the net working
capital.

Saskia Baumann: This figure is calculated as the sum of trade receivables plus inven-
tories minus trade liabilities possessed by a company.

Maria Rueda: It's important to note that cash is not considered as part of the capital
employed. This distinction becomes relevant when discussing the cash-flow statement.

Saskia Baumann: The ratio between the profit, or return, and the capital employed can
be interpreted as the return the company generates for its investors – whether they are
equity investors or financial creditors.

Maria Rueda: What target would a financially driven investor anticipate from the com-
pany? This varies based on general market interest rates and the risk profile of the in-
vested company.
Saskia Baumann: Let's crunch the numbers for an example company: The WIIT Group,
based in Italy, provides datacenter and IT services across Europe. From the 2022 an-
nual report, we have the following figures.

Maria Rueda: The Profit & Loss statement reports an EBIT of 16.2 million euros. Ac-
cording to the balance sheet, the long-term assets are valued at 236.4 million euros.

Saskia Baumann: We calculate the Net Working Capital by summing up the inventories
of 0.2 million euros, adding the receivables of 34.1 million euros, and subtracting the
payables and contract liabilities at 20.0 million euros.

Maria Rueda: This gives us a net capital employed of 250.7 million euros. Computing
the ROCE as the ratio of EBIT divided by the net capital employed results in a ROCE of
6.5%.

Saskia Baumann: Considering the company has issued bonds worth 167.7 million eu-
ros at an interest rate of 2.4%, the ROCE appears quite low.

Maria Rueda: When we mention that the ROCE is low, it's important to note that we
calculated it using profit before taxes.

Saskia Baumann: Investors in companies like Siemens Energy would likely not accept
such a modest ROCE.

Maria Rueda: With such a high level of debt, the interest rate at which they need to refi-
nance themselves will significantly impact the company's survival. Imagine if interest
rates for new bonds rise to 6% or higher. The profits generated by operations might eas-
ily be eaten up by the additional interest to be paid.

Saskia Baumann: For such a customer, it's reasonable to assume they'd prefer leasing
or service-contracting over spending CAPEX. Anything we can offer them that either
boosts their EBIT or reduces their net capital employed will enhance their ROCE.

Maria Rueda: We've discussed the significance of ROCE, but where does cash flow fit
into the equation?

Saskia Baumann: Put simply, cash flow reflects the change in your bank account bal-
ance. Remember, cash isn't factored into the capital employed for ROCE calculation.

Maria Rueda: And for good reason. Cash isn't tied up and can be easily withdrawn from
the company by its investors. Moreover, it's the most flexible asset a company can pos-
sess, easily convertible into other forms of assets.
Saskia Baumann: So, where does cash flow originate? There's a complex calculation
known as the cash flow statement. It clarifies where a company's cash has come from
and where it's gone.

Maria Rueda: In essence, a company's cash flow can arise from operational transac-
tions, investment activities, and financing transactions.

Saskia Baumann: Operational transactions involve cash receipts from customers mi-
nus payments to suppliers and employees.

Maria Rueda: Investment activities include asset purchases, which we previously re-
ferred to as CAPEX. These investments reduce the cash, just as de-investments create
a one-time positive impact on cash.

Saskia Baumann: And financing activities involve loan repayments, acquisitions of

loans and equity, and tax payments, which aren't considered operational.

Maria Rueda: Let's examine the cash flow statement for our example customer.

Saskia Baumann: In 2022, they generated 23.1 million euros in cash from operations,
primarily through running datacenters and selling their services.

Maria Rueda: They consumed 19.7 million euros for investments, mainly directed to-
wards acquiring other datacenter companies.

Saskia Baumann: Cash flow from their financing activities resulted in a cash consump-
tion of 9.4 million euros. This included to a large extent dividend payments.

Maria Rueda: Together, these three figures led to a reduction in their initial cash posi-
tion by approximately 6 million euros over the year. What implications does this analysis
hold for us as a potential partner and supplier to them?

Saskia Baumann: Despite reducing their cash position by 6 million euros, we can view
their cash performance as positive. After all, they invested their cash in future growth by
acquiring other data centers. Over time, this strategy has the potential to generate posi-
tive cash flows in the future.

Maria Rueda: So, when we analyzed the cash flow and capital efficiency for our cus-
tomer, what potential value generators did we identify for them?

Saskia Baumann: We can explore solutions that reduce their OPEX, thereby enhanc-
ing their Return on Capital Employed – the ROCE.
 Maria Rueda: Alternatively, we can devise financing models that lower their CAPEX,
resulting in reduced net capital employed.

Saskia Baumann: Lowering CAPEX will also positively impact their cash generation
from operations. This additional cash can be allocated towards strategic acquisitions,
driving future growth.
Maria Rueda: We're eager to discover how you can assist your customers in enhancing
their capital efficiency and cash flow.

The Business Model of Customers

Maria Rueda: Welcome to our next video. Here, we'll explore how our customers plan
to earn money and manage their strategic challenges.

Saskia Baumann: Let's analyze our customer's business model— who they sell to and
how they create value. We'll use the business model framework for deeper insights.

Maria Rueda: Additionally, we'll adopt the perspective of high-level decision-makers to

grasp their concerns and organizational targets. To understand these aspects better,
we'll utilize the customer discovery tool.

Saskia Baumann: Let's learn more about the Business Model and the Customer Dis-
covery Tool.

Maria Rueda: Let’s apply this tool to a specific business segment of our customer.

Saskia Baumann: For instance, a datacenter operator may conduct business by leas-
ing server capacity to private customers and hosting industrial customers' equipment in
their datacenters through colocation models.

Maria Rueda: It's essential to analyze the individual business separately, as the cus-
tomer likely utilizes different business models for each of them.

Saskia Baumann: When utilizing the Business Model framework to analyze the cus-
tomer's money-making-logic, we begin (in) the center with the Value Proposition.

Maria Rueda: This entails understanding the values the customer creates for their cus-
tomers and how they structure their offerings to deliver these values.

Saskia Baumann: In a B2B environment these are four main reasons, why customers
buy our offerings: it helps them to increase their sales.
Maria Rueda: it reduces their cost.

Saskia Baumann: It reduces their risk.

Maria Rueda: It improves their sustainability.

Saskia Baumann: For us at GT these generic value drivers would translate into ele-
ments such as: Time to market

Maria Rueda: 100% availability of Energy

Saskia Baumann: Reduction of Losses

Maria Rueda: Space requirements

Saskia Baumann: And many more yet to be identified. Remember, in our business
there is hardly a one size fits all. All our offerings need to be engineered to the specific
customer demand.

Maria Rueda: Speaking about the demand, we proceed to the customer module and
understand the target segments our customer serves, along with their marketing and
sales channels. Additionally, we explore how they manage the relationship with their
customers.

Saskia Baumann: This leads us to the question "how do they make money?" To an-
swer this, we examine the revenue module. Here, we can detail the pricing model our
customer employs for their customers.

Maria Rueda: As an example, they could utilize a classic unit-based pricing model,
where the more one consumes, the more one pays.

Saskia Baumann: Or they may charge for performance. There are also many other
methods by which customers could charge their own customers.

Maria Rueda: The delivery module outlines the actions our customer must take to de-
liver value. What are the key activities necessary to sustain the business model?

Saskia Baumann: In these activities, our customer relies on key resources, such as
specific employee groups, technical equipment, and other assets.

Maria Rueda: As our customer is unlikely to produce everything by themselves, they

will rely on key partners to help create value. Becoming and remaining such a key part-
ner for our customers was a primary driver for this course.
Saskia Baumann: The delivery module significantly influences the final two elements of
the Business Model Framework. It directly affects the cost module for our customer,
where we identify the main costs of their operations. Examples include material and en-
ergy consumption, maintenance, and personnel expenses. These costs of operations
are often referred to as OPEX.

Maria Rueda: Then, we have the invest and finance module, which details how the as-
sets required for the business are provided and financed. Examples include loans and
equity financing or leasing and short-term rentals. These costs of capital are often re-
ferred to as CAPEX.

Saskia Baumann: We will speak more about the terms OPEX and CAPEX in one of our
next videos in this program.

Maria Rueda: Now that we have analyzed the business model used to make money, we
will use the customer discovery tool to understand the strategic challenges our cus-
tomers are facing.

Saskia Baumann: The customer discovery tool assists us in finding solutions that cre-
ate value for our customers. It comprises four consecutive steps. We begin by examin-
ing our customer’s industrial environment and identifying the most significant trends that
impact them.

Maria Rueda: Our customer may encounter increasingly stringent regulations from their
local governments regarding the emission of greenhouse gases.

Saskia Baumann: Simultaneously, competition could escalate due to deregulation and

the entry of alternative providers into the market.

Maria Rueda: Another driver could be the labor market, where our customer is facing
an even stronger war for talent.

Saskia Baumann: Analyzing these trends enables us to grasp the market forces driving
the customer.

Maria Rueda: In the next step, we aim to understand the specific targets the customer
has set to leverage these trends. We examine the specific Key Performance Indicators
they have defined to measure success.

Saskia Baumann: We can learn about these targets from various sources. Firstly, we
can review the annual reports that most customers are required to publish to their
shareholders and gain insights into strategic initiatives mentioned in these reports.
Maria Rueda: Additionally, press announcements and industry reports provide valuable
insights into the KPIs the customer uses.

Saskia Baumann: Furthermore, we can leverage insights from industry associations

and our networks to further understand their targets.

Maria Rueda: And finally, it is always a great idea to speak directly with our customers.
This involves not only discussing our latest offerings, technologies and innovations but
also inquiring about their targets.

Saskia Baumann: It's essential to ensure that we're connected with the appropriate
level of management on the customer side.

Maria Rueda: We aim to precisely describe these targets by outlining: Which KPIs are
being used

Saskia Baumann: How they are measured,

Maria Rueda: the current performance level

Saskia Baumann: and the targets defined for the future.

Maria Rueda: In our example, let's say the customer has set targets to reduce today's
emission of CO2 in their production process to become carbon neutral by 2035.

Saskia Baumann: Furthermore, to address the shortage of skilled experts, they've set
a target to increase automation of their assets.

Maria Rueda: This aims to reduce the training time for new staff from the current 6
months down to 4 months.

Saskia Baumann: Understanding these targets and quantifying them allows us to com-
prehend the motivations driving the customer's managers and their decisions. However,
there are additional aspects we need to understand.

Maria Rueda: We also need to analyze factors that hinder the customer from simply
achieving these targets. A customer who can easily reach their targets has probably
only little demand for a strong partner like Siemens Energy.

Saskia Baumann: The more obstacles we can identify that hinder our customer from
achieving their targets, the more potential we have for creating a compelling value
proposition.
 Maria Rueda: In our example, achieving a reduction in CO2 emissions requires the uti-
lization of modern, state-of-the-art processes and equipment. However, the financing of
these new technologies poses an obstacle for them.

Saskia Baumann: And the time it takes to train new staff is influenced by the variety of
different equipment in use and the interfaces between them.

Maria Rueda: This leads us to the fourth step of our customer discovery tool. Here, we
define potential solutions and technologies that could assist the customer in overcoming
the barriers analyzed in step 3, thereby enabling them to achieve the targets from step
2.

Saskia Baumann: Which, in turn, helps them better adapt to the trends and industry
drivers identified in step 1 of our tool.

Maria Rueda: Digitalization and connecting equipment together, along with fully inte-
grated service manuals using augmented reality, could be solutions that we could pro-
pose.

Saskia Baumann: Instead of merely attempting to sell them because we happen to

have these solutions already on offer, the customer discovery tool assists us in aligning
our offerings with the customer's targets and the driving forces in their industry.

Maria Rueda: We trust that this overview of the Business Model Framework and the
Customer Discovery Tool assists you in gaining a deeper understanding of customer’s
money-making-logic and their strategic challenges and targets.

Saskia Baumann: Naturally, you'll want to tailor the provided examples to suit your cus-
tomer

Maria Rueda: We wish you every success in applying these tools.

Special Environment of TSO/DSO Customers

Maria Rueda: Welcome to our learning video on the business model of transmission
system operators (TSOs) and distribution system operators (DSOs).

Saskia Baumann: Let's dive into the key aspects of these players in the energy indus-
try.
Maria Rueda: To start, let's outline the core components of the industry. The first ele-
ment is Production, which is all about the generation of electricity.

Saskia Baumann: Next, we have Trading. This stage involves the purchasing and sell-
ing of electricity within the market.

Maria Rueda: Following that is Transport, which is focused on the transmission of elec-
tricity to reach end consumers. This task falls under the purview of TSOs and DSOs.

Saskia Baumann: Lastly, there's Sales. This final stage serves as the point of contact
for end consumers, handling everything from contract management to billing.

Maria Rueda: Now, let us focus on TSOs and DSOs. TSOs typically manage high-volt-
age transmission networks, ensuring the efficient and reliable transport of electricity.
They are often state-owned or regulated entities with a focus on maintaining grid stabil-
ity and security.

Saskia Baumann: On the other hand, DSOs operate at lower voltage levels and are
responsible for distributing electricity to end-users within specific geographical areas.
They may be privately owned, state-owned, or a combination of both, depending on the
region.

Maria Rueda: As the transmission and distribution networks create so called natural
monopolies, the regulation focuses on equal access, cost transparency and regulation
of the fees for the grid.

Saskia Baumann: TSOs and DSOs play pivotal roles in the energy sector, with key re-
sponsibilities that include maintaining grid stability—this involves regulating voltage lev-
els and frequencies—and guaranteeing a continuous power supply to consumers.

Maria Rueda: Transitioning to revenue models, TSOs and DSOs generally adopt either
cost-based or incentive-based frameworks. Cost-based models focus on recouping ex-
penses related to grid operations. In contrast, incentive-based models encourage effi-
cient performance and the optimization of the grid.

Saskia Baumann: Recently, there has been a shift in numerous legislations towards
favoring incentive-based revenue models. Put simply, this approach often involves set-
ting maximum revenue limits at regular intervals, typically every few years.

Maria Rueda: Remaining under this cost limit enables operators to generate profits,
with the incentive being that they can retain these profits.
Saskia Baumann: Over time, the efficiency targets are progressively tightened, provid-
ing a continuous incentive for operators to enhance their operational efficiency.

Maria Rueda: Finally, let's discuss the major cost drivers for TSOs and DSOs. These
include grid planning and extension to accommodate growing demands or changes in
the dynamics of the production. Renewable energy sources and smaller, decentralized
production require different grid performance.

Saskia Baumann: Ongoing maintenance of infrastructure, load balancing to match sup-

ply with demand, efficient contract management, accurate metering and invoicing pro-
cesses are additional elements that constitute cost for the operator.

Maria Rueda: By understanding these key aspects of TSOs and DSOs, we gain insight
into their vital role in the electric transport industry and their impact on grid reliability and
efficiency.

Saskia Baumann: As an example, if we understand the cost included for the TSO in
dispatching additional production resources or containing the demand for industrial con-
sumers, we can create value by giving them tools and knowledge on hand to better plan
the grid utilization.

Maria Rueda: We look at the company Elia that is an example for a European TSO with
operations in Belgium and in Germany. The return on sales based on EBIT is in good
range with 14,5%

Saskia Baumann: The total assets have increase year over year by over 13% to a total
of more than 20 Billion. The return on equity yields a nice 7,5% for the shareholders.

Maria Rueda: The financials being solid, the company’s focus is apparently more on
strategic goals such as the four megatrends they speak about in their annual report.

Saskia Baumann: And this helps us to better to generate more value for them as our
customers.

Maria Rueda: Remember, we generate value for customers by helping our customer to
either generate more revenue, lower their cost and risk or to help them become more
sustainable.

Saskia Baumann: And this is how we can differentiate ourselves in the market.

Maria Rueda: See you in the next one!

Understanding the Role of Sustainability
Saskia Baumann: Hello and welcome to this video on why our customers include sus-
tainability in their business targets and how Siemens Energy can support their efforts.

Maria Rueda: Sustainability has become much more important not only to us, but also
to our customers.

Saskia Baumann: It’s about transforming your business into a sustainable business to
fulfill investors, governments and societies requirements.

Maria Rueda: The days when our customers perceived sustainable business practices
mainly as extra cost are long gone.

Saskia Baumann: Instead, we see an increasing number of sustainability related ques-

tions- how our products, solutions and services as well as our business operations sup-
port customers in meeting their targets and roadmaps.

Maria Rueda: This helps them to meet the directives and decrease their environmental
footprint.

Saskia Baumann: A non-sustainable business will soon not be viable anymore.

Maria Rueda: We support customers achieving their sustainability goals by consulting

them in decarbonizing their energy transmission and consumption.

Saskia Baumann: Additionally, by digitalizing and automating their processes, we con-

tribute to enhancing their efficiency, thereby improving their sustainability.

Maria Rueda: Let us have a closer look.

Saskia Baumann: What drives investors? A growing value of their investment. For pub-
licly traded companies, this is reflected in the stock market price, which depends on the
anticipated future performance of the company.

Maria Rueda: On one side, these future outcomes are influenced by the current profit
and loss statement. Investors with a short-term perspective primarily focus on these di-
rect effects, prompting companies to cut cost and boost short-term sales.

Saskia Baumann: However, the future performance is also shaped by long-term indi-
rect factors, such as innovation, motivation, expertise of employees, and the company's
operational risk profile.
Maria Rueda: Furthermore, a positive reputation among customers, suppliers, in-
vestors, and the broader society significantly contributes to the company's future suc-
cess.

Saskia Baumann: If a company wants to operate sustainably, it must start doing things
differently. It must break new ground and be innovative.

Maria Rueda: The question is how this works for our customers in detail. When it
comes to sustainability, our clients typically are balancing the interests of at least three
external key stakeholders: Their customers

Saskia Baumann: Government and society in the countries they operate.

Maria Rueda: Their investors, for example shareholders and lenders

Saskia Baumann: There is a strong movement towards decarbonization and therefore

sustainable growth among all three stakeholders. While their motivations are different,
they have one thing in common.

Maria Rueda: They are all under intense pressure from their own stakeholders. For ex-
ample, the EU aiming for a zero-carbon economy by 2050 with the EU Green Deal, this
pressure is mounting.

Saskia Baumann: GT customers are often state-owned enterprises. As governments

push for decarbonization and tighten regulations on power generation and transmission,
state-owned companies will have to lead the way.

Maria Rueda: Those customers that consume large amounts of energy, such as steel
mills and data centers, are also often dependent on government policies.

Saskia Baumann: The pressure to become CO2 neutral is high. Their own customers
also have ambitious CO2 reduction targets to meet and furthermore demand sustain-
able supply chains.

Maria Rueda: Most industries and their individual companies in Europe have now com-
mitted to strict decarbonization targets, some of which go beyond the legal require-
ments.

Saskia Baumann: Energy-hungry digital companies in Europe, such as the 17 leading

data center operators, have pledged to be CO2-free by 2030.

Maria Rueda: Companies are asked to disclose their sustainability efforts following the
EU Taxonomy Rules or “Corporate Sustainability Reporting Directive”.
Saskia Baumann: But how does sustainability really pay off for our customers?

Maria Rueda: It will be a good idea to produce CO2-free in the long term. It is also es-
sential that firms comply with rules and regulations.

Saskia Baumann: However, even today, companies that decarbonize have an immedi-
ate and clear monetary advantage.

Maria Rueda: For financing of businesses or projects investing carbon free becomes
less pricy. Since the introduction of the European Green Deal Investment Plan 2020,
Companies can borrow money by issuing so called Green Bonds.

Saskia Baumann: [But] Green bonds come with many strings attached. There are strict
rules, how companies can use and manage the proceeds.

Maria Rueda: Any project needs to be externally evaluated and carefully monitored.
Companies must only invest into sustainable projects.

Saskia Baumann: Green bonds trade at lower interest rates than traditional bonds. It
reduces the cost of capital, with a direct positive impact on profit.

Maria Rueda: As an example: Siemens Energy has issued as of March 2024 green
bonds in the value of 1.5 billion EUR.

Saskia Baumann: Tennet, the large Dutch grid operator issued 3.85 billion EUR worth
of Green Bonds in 2022 to finance its sustainability investments for its network, connec-
tion services, and interconnectors.

Maria Rueda: The driver for green bonds is not only the lower interest rate. Banks and
financial investors themselves have committed to change their investment portfolios to
net zero.

Saskia Baumann: Summing up: Sustainability is an important issue for our customers.

Maria Rueda: Some have already started to implement sustainability-strategies to lower

their cost and to boost their sales. They also communicate their sustainability targets in
their annual reports.

Saskia Baumann: Therefore, when designing and delivering value to our customers,
we must specifically address the direct and indirect impacts of sustainability.

Maria Rueda: We offer a range of products, services and solutions to support.

 Saskia Baumann: See you in the next video!

Crafting Compelling Value Propositions

Maria Rueda: Hi everyone! In this video, we'll guide you through seven steps to make a
strong value proposition for GT offerings. Let's get started!

Saskia Baumann: The first 4 steps are the same as the customer discovery tool we
introduced earlier. So, be sure to use the insights you gained from there.

Maria Rueda: Let's quickly go over those four steps and illustrate with an example.
Imagine a potential customer managing an industrial park who requires a power substa-
tion for energy connectivity.

Saskia Baumann: Step 1 involves analyzing the industry trends that affect the cus-
tomer.

Maria Rueda: In our example, key trends might include the need for flexible power sup-
ply to accommodate changing tenant demands. Offering a pay-as-you-go model and
ensuring stable power could give them an edge in attracting tenants.

Saskia Baumann: Step 2 is to identify the customer's business objectives and the met-
rics they use to measure success.

Maria Rueda: We have discovered that our customer aims to improve the availability of
their power supply. They currently achieve 99.5% availability and aim to reach 99.7%
within two years.

Saskia Baumann: Additionally, our customer aims to reduce operational costs associ-
ated with running the substation. They plan to cut personnel expenses by 10% within
one year.

Maria Rueda: In Step 3, we outline the operational challenges our customer may en-
counter while pursuing their goals.

Saskia Baumann: For instance, the industrial park may struggle to finance the required
investments from their available funds.

Maria Rueda: Step 4 involves presenting our solution that addresses these operational
challenges and helps the customer achieve their objectives.
 Saskia Baumann: We provide state-of-the-art equipment to enhance availability. Our
preventive maintenance and condition monitoring services help prevent failures before
they happen.

Maria Rueda: Additionally, we offer financing solutions through our network of financing
companies to assist customers on the commercial side.

Saskia Baumann: Now, in Step 5, we emphasize the unique value that we offer.This
could involve increasing tenant sales due to highly available power supply

Maria Rueda: We demonstrate cost savings through preventive maintenance mea-

sures. We customize our offerings to meet the customer's specific requirements.

Saskia Baumann: Step 6 involves evaluating potential competitors and showcase our
competitive advantage. We emphasize our ecosystem of internal capabilities and exter-
nal partners, particularly throughout the operation and maintenance phase, which in-
cludes financing solutions.

Maria Rueda: Lastly, in Step 7, we present our experience and references with similar
solutions. We offer evidence of our capabilities and demonstrate how we've assisted
similar clients in achieving their goals through our innovative energy solutions.

Saskia Baumann: Even if your role doesn't involve direct customer communication, it's
crucial to understand the specific value proposition we've developed for them.

Maria Rueda: You'll likely be involved in crafting the value proposition during the acqui-
sition phase or ensuring successful implementation during project execution.

Saskia Baumann: That concludes our overview of the seven steps for crafting a com-
pelling value proposition.

Maria Rueda: We encourage you to utilize the method shown in your daily work to im-
prove your understanding of the customers and optimize our value proposition.

Congratulations
Gelem Lluberes: Congratulations, you have completed our course! Throughout this
course, you have gained essential skills. Now you know how to classify our different
types of customers and how to understand what makes them tick, what drives them,
and what is important in their business model. You have also become proficient in un-
derstanding our customer’s financial health via any financial document that is publicly
 available. Moreover, you have learned how to connect the dots and bring that informa-
tion into value propositions towards our customers and got the skills to deliver it.

Your dedication and hard work has paid off. Once again congratulations on completing
our course and all the impact that you keep doing day by day.

Keep pushing the boundaries. We need you. We need you for the success of Team Pur-
ple and to make a change in the energy environment.

Optional Material: Convincing Our Stakeholders

Saskia Baumann: So far our videos have mainly focused on customers and external
stakeholders. But that is only half the truth: whatever we do must also create value for
us. We want to make a profit, take as few risks as possible and utilize our capital effi-
ciently.

Maria Rueda: Securing internal buy-in is crucial; a project can only be presented to the
customer after it has received approval from our own organization's stakeholders.

Saskia Baumann: To achieve this, we must first comprehend our strategy for the
project. Understanding our decision-making criteria and framework is essential to this
process. We use the 5C Model—a tool designed to decode our company priorities and
thought processes. We want to ensure that we align our project proposals with what's
most important.

Maria Rueda: In this video, we're going to explore the common questions that investors
and internal sponsors typically ask when you pitch your ideas for new business opportu-
nities.

Saskia Baumann: What is the main responsibility that both external investors and inter-
nal sponsors have? What is their commonality when you ask them for funding?

Maria Rueda: I’m afraid: it is deep pockets, but very short arms. And you know why
that is? Because they are spending other people’s money, and they want to make sure
that they get this money back - preferably with a profit!

Saskia Baumann: This explains why risk management is so important to them. And
that is why they ask so many detailed questions before opening their wallets. And often
we are not prepared to answer them all.

Maria Rueda: It is not so complicated after all, especially with the 5C model in mind.
This is a framework for covering the different areas of concern that investors have.

Saskia Baumann: Let’s look at 5 categories. All start with the letter C. The first one is:
compatibility. We need to understand that investors follow a strategy of where to invest.
Your proposal must be compatible with the investment strategy.
Maria Rueda: It is also about Capability. Investors want to ensure that the designated
team has the experience, the expertise, the structure, and the culture to attract key re-
sources and to positively interact with the targeted customer segment.

Saskia Baumann: It is a good idea to be aware of the investment history. Maybe an

idea like yours has failed in the past – be prepared to explain why your idea will work
this time in order to minimize your investors’ reluctance.

Maria Rueda: The next category is Completeness. Make sure you understand the mar-
ket dynamics. Are you sure you are aware of how your competitors will react if your idea
is brought to life?

Saskia Baumann: Will they give in, or will they fight back?

Maria Rueda: Are you sure you are the only one working on this idea?

Saskia Baumann: Are you aware of any new players who may enter the same market,
as dynamic and dedicated as you?

Maria Rueda: For the next category we have Consistency. Investors love consistency.
They want to see that the individual elements of your plan follow a logic. They want to
test that you really checked your value proposition with your selected customer seg-
ment. Don’t set your revenue expectations too high. And do not underestimate your
costs. Investors want to see that you are aware of every major cost driver.

Saskia Baumann: And the final and central category is Consciousness. This is about
your awareness of risk. Do you understand all the main risks?

Maria Rueda: Do you have a plan B in case things go wrong?

Saskia Baumann: Do you have an exit strategy if things just don’t work out?

Maria Rueda: Investors want you to be as risk conscious as they are.

Saskia Baumann: Let’s look at our previously introduced company WIIT a provider of
data center service: Imagine WIIT has asked us to provide a performance-based con-
tract of a power sub-station connecting their data center at high voltage level.

Maria Rueda: Our check for Compatibility would clearly indicate, that such a project is
aligned with our GT strategy.

Saskia Baumann: The next aspect to assess is the capability. Although we have expe-
rience in building and installing such substations for other clients, our experience in op-
erating them under a performance-based business model is limited.

Maria Rueda: To test for completeness, we would now run the project idea with the
Business Model Canvas to identify strategic gaps. We must develop an initial business
plan that includes profit and loss, balance sheet items, cash flow projections, and ROCE
forecast.
Saskia Baumann: Consistency can be assessed using these tools, which might highlight
the logical flow between the individual components.

Maria Rueda: In our example, as we propose offering a performance-based contract for a

sub-station, we must also explore the potential for scalability. It's unlikely that WIIT is the
only company interested in such an arrangement.

Saskia Baumann: We prepared a pricing scheme that possibly combines a fixed monthly
retainer fee with a performance-based component. For the delivery module, we might sug-
gest building the sub-station but partnering with an outsourcing company to handle opera-
tions.

Maria Rueda: We should have prepared a complete business case to demonstrate the fi-
nancial benefits for GT.

Saskia Baumann: Projects never go as planned. You want to demonstrate that you are
aware of the risks involved. You have carefully analyzed the technical and commercial risks
and have developed mitigation strategies for all of them.

Maria Rueda: Wrapping up, we want to ensure that our investors and sponsors are in their
comfort zone. Preparation is key.

Saskia Baumann: With the 5C model we can anticipate their questions. Now let us pre-
pare the answers.
  Introduction to Sustainability: 30 minutes

 Interacting with Customers: 24 minutes

 GT S Strategy Pathways: Coming Soon

1 Product Information
 GT General Introduction: 47 minutes

 HVDC: 30 minutes

 Bushings, Instrument Transformers, & Coils Overview: 8 minutes

 Blue High Voltage Products: 24 minutes

 Power Transformer Basics: 25 minutes

 GT Services Product Portfolio: 54 minutes

 Digital Grid: Coming Soon

 Air & Gas Insulated Switchgear: 19 minutes

 High Voltage Substations: 60 minutes

 Data Center: Coming Soon

 FACTS: 45 minutes

 Offshore Wind Training: 30 minutes