innovation at siemens · innovation at siemens. december 8, 2015 ... current expectations and...

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Press and Analyst Event | December 8, 2015Joe Kaeser and Siegfried Russwurm

A view to the futureInnovation at Siemens

December 8, 2015

© Siemens AG 2015 Joe Kaeser | Siegfried Russwurm

Notes and forward-looking statements

This document includes – in IFRS not clearly defined – supplementalfinancial measures that are or may be non-GAAP financial measures.These supplemental financial measures should not be viewed inisolation or as alternatives to measures of Siemens’ net assets andfinancial positions or results of operations as presented in accordancewith IFRS in its Consolidated Financial Statements. Other companiesthat report or describe similarly titled financial measures may calculatethem differently.

Due to rounding, numbers presented throughout this and otherdocuments may not add up precisely to the totals provided andpercentages may not precisely reflect the absolute figures.

This document contains statements related to our future business andfinancial performance and future events or developments involvingSiemens that may constitute forward-looking statements. Thesestatements may be identified by words such as “expect,” “look forward to,”“anticipate” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” orwords of similar meaning. We may also make forward-looking statementsin other reports, in presentations, in material delivered to shareholders andin press releases. In addition, our representatives may from time to timemake oral forward-looking statements. Such statements are based on thecurrent expectations and certain assumptions of Siemens’ management, ofwhich many are beyond Siemens’ control. These are subject to a numberof risks, uncertainties and factors, including, but not limited to thosedescribed in disclosures, in particular in the chapter Risks in the AnnualReport. Should one or more of these risks or uncertainties materialize, orshould underlying expectations not occur or assumptions prove incorrect,actual results, performance or achievements of Siemens may (negativelyor positively) vary materially from those described explicitly or implicitly inthe relevant forward-looking statement. Siemens neither intends, norassumes any obligation, to update or revise these forward-lookingstatements in light of developments which differ from those anticipated.

December 8, 2015


From pointer telegraph and dynamo to offshore windpower and Sinalytics

1866Dynamo

1816-1892Company founder,visionary and inventor

1847Pointertelegraph

2015Sinalytics

2012World‘s largestoffshore rotor

Werner von Siemens Siemens innovations over 168 years

Yesterday Today

December 8, 2015


Vision 2020 – Innovation drives growth

Drive performance

Strengthen core

Scale up

2015 2016 2017 2018 2019 2020

Foster ownership culture and leadership based on common values

Value

Operationalconsolidation

Strategicdirection Optimization Accelerated growth

and outperformance

December 8, 2015


Investment in R&D is increasing

R&D expenses in billions of €in % of revenue

FY 2015 FY 2016(forecast)

FY 2014

4.5

+20%

~4.8

4.0

+~20%

5.9%5.6%

December 8, 2015


HC

DF

PG

EM

PD

Oth

er

MO

R&D focus on growth areas

R&D expenses (FY 2015)

Profit IndustrialBusiness

€4.5 bn

§ Next-generation diagnostics§ Combined multi-modal applications

§ SINAMICS drive platform for LV/MV§ Control system for key process industries§ Turbine efficiency§ Optimize SIE, RR, DR product range§ Data-based and Digital Service models§ Integrated software platform for the Digital Enterprise

from PLM to automation§ TIA portal

§ Decentralized electrification for prosumers§ Strengthen automation platform for Digital Grid

§ Automation and digitalization of mobility§ Next-generation vehicle platforms

1 Values for Dresser-Rand on comparable basis

~85%

~90%

R&D growthFocus on selected businesses

Estimated R&D growth FY 2015 – FY 2016 (subject to FX development)

+8%

+6%

+7%1

+6%

+10%

+7%§ Sinalytics platform§ Innovation AG

December 8, 2015


Strong, profitable growth of digital businesses

Connectivity andWeb of Systems

Mobile IT

Smart data andanalytics

Cloudtechnologies

RevenueFY 2015

Profitability

Revenuegrowth

++

+16%

€0.6 bn

+++

Vertical software Digital services

€3.1 bn

December 8, 2015


Our most successful businesses are innovation leaders

1982 20151992 2002

Cumulated R&D

~ €3 bn

Cumulated revenue

>€35 bn

SIMATIC PLC1982 to 2015

Globaltrend setterDigital Factory

December 8, 2015


Our most successful businesses are innovation leaders

Globalmarket share 38%

Innovation

for both equipmentand service

Profitability

>60,000systems worldwide

Healthcare Imaging and Therapy Systems

Press and Analyst Event | December 8, 2015Siegfried Russwurm

Technologiesfor the future


December 8, 2015


Electrolysis asan energy storageoption

Energiewende 2.0 – Siemens is conducting research into energy systemsof the future, developing technologies of tomorrow already today

Offshore gridconnection withDC technology

HVDC full-bridgetechnology forpower transmission

New approachesto powerelectronics

December 8, 2015


30%highertransmission capacities

20%lowertransmission losses

20%shorterinstallation time 30%

lowerspecific costs

New direct current transmission technologymakes offshore wind energy competitive

80% lessvolume

December 8, 2015


To transmit power, Amprion and TransnetBW rely on Siemens and facilitatethe Energy Transition's breakthrough with our HVDC technology

– Ultranet represents a decisive step in the execution of theEnergy Transition in Germany

– Thanks to Siemens' HVDC full-bridge technology, largeamounts of power can be transmitted from north to southfor the very first time

(planned)

Osterrath

Phillipsburg

ULTRANET+ HVDC technologyfrom Siemens

Convertersystems

2,000 MWat a voltageof +/- 380 kV

technologyConnections with thehighest stability levels

3 restarts in

450 mspossible

Full-bridge

December 8, 2015


4.0

Tomorrowbased on the useof cyber-physicalsystems

3.0

1969based on the use ofelectronics and ITto further automateproduction

Industrie 4.0 triggers a paradigm shift,which we are actively shaping today

2.0

1870based on massproduction throughassembly lines andthe use of electricalenergy

1.0

1784based on the intro-duction of mechanicalproduction equipmentdriven by waterand steam power

December 8, 2015


Productivity, speed and flexibility remain the biggest challengesfor production industries …

Increased competitiveness

… but the focal points of these requirements are changing in the wake of digitalization

Shorter innovationcycles for ever more

complex products

Speed

Energy efficiencyand resource

efficiency are criticalcompetitive factors

Productivity

Individualizedmass productionin increasingly

volatile markets

Flexibility

Closed-loop controland comprehensivetraceability become

quality characteristics

Quality

December 8, 2015


Automation ofAM machineryand processes

Siemens is the only company in the world to cover the entire value chainof Additive Manufacturing (AM)

Design softwarewith specificAM functions

Research intohigh-performanceAM materials

Use of AM in ourown production

December 8, 2015


With the Web of Systems, Siemens presents its conceptfor the industrial application of the Internet of Things

ProcessIndustriesand Drives

DigitalFactory

EnergyManagement

Healthcare

Manu-facturing

Gridinfrastructure

Turbinemonitoring

Power and Gas,Power Generation

Services

Wind Power

Mobility

BuildingTechnologiesBuilding

infrastructure

Web ofSystems

‒ Siemens believes the Internet ofThings has tremendous potential

‒ In critical infrastructurescustomers have much higherrequirements regarding reliability,persistance and data protection

‒ For this reason, devicesconnected to the Web of Systemsprocess their data locally insteadof transmitting them to the cloud.This ensures that the know-howand the intellectual property of ourcustomers remain protected

‒ Siemens is already using thistechnology in many projects today

December 8, 2015


ProcessIndustriesand Drives

DigitalFactory

EnergyManagement

Healthcare

Manu-facturing

Gridinfrastructure

Digital services powered by Sinalytics –our new platform for data-based service offerings

300,000 connected devices –17 terabytes of data per month

Sinalytics Turbinemonitoring

Power and Gas,Power Generation

Services

Wind Power

Mobility

BuildingTechnologiesBuilding

infrastructure

‒ In FY 2015, Siemens generatedrevenue of €16 billion withtraditional and digital services

‒ In the future, all requiredtechnologies will be combined ona single new platform: Sinalytics

‒ This comprises proven and thelatest technologies for dataanalysis, connectivity andcyber-security

December 8, 2015


An example from our Mobility Division shows one thing: Our digital servicessignificantly improve stability and increase customer satisfaction

Remotediagnosisfacilitatespredictivemaintenance

Shiftfrom correctiveto preventivemeasures

Increasedavailabilityand avoidanceof unplanneddowntimes

99.9% availabilityHigh-speed train serviceBarcelona – Madrid

Full reimbursementof ticket prices for passengers whena train is >15 minutes late

Only ONE of2,300 tripsis really late

Press and Analyst Event | December 8, 2015Joe Kaeser

New innovationmodels


December 8, 2015


What How

Combination of “What“ and the “How“ determines our success

December 8, 2015


32,100employees worldwidein Research andDevelopment

17,500software engineers

One in ten Siemens employees works in R&D

646Siemens inventionsby nine “Inventorsof the Year”

Siemens Technology and InnovationCouncil: thought leaders of the worldadvise

Innovation Fund for employees:up to €100 million over 3 yearsfor grass root innovation ideas

Werner von Siemens Awardfor outstanding achievements

December 8, 2015


Universitiesand researchinstitutes

Crowdsourcing R&Dplatforms

Start-ups

Networks as success factor

December 8, 2015


Our start-up strategy

> €800 million investedin 180 start-ups

>12 start-upsfounded

Cooperation

Founding

Investment

€€

Collaborationwith >1,000

start-upsworldwide

„Innovation AG“ concept§ Unlimited start-up environment§ Independent funding§ Reports directly to Managing Board (CTO)§ Addresses new business fields

and transformation of existing businesses§ Combines Siemens competences with

start-up creativity

+

innovation at siemens · innovation at siemens. december 8, 2015 ... current expectations and...

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