siemens industry sector

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SiemensIndustry Sector 2012

Standard presentationStatus November 2012

Industry Sector

© Siemens AG 2012. All rights reserved.

Status November 2012

Mastering complexity

Globalization

Climate change

Energy needs

Scarce resources

Raw material prices

Higher competitivness for our customers

Cut costs

Save energy and

resources

Increase productivity

Produce efficiently

Our challengeLess input – More output!

Industry Sector



...establishing trusting customer relationships and thus creating customer value and profitable growth

Our positioningThe Industry story

We are the leading technology partner...

…covering every step of the value chain…connecting productivity and efficiency ...bringing intelligence to the entire product development

and production process

Industry Sector



We are the leading technology partner…

TIA Portal

Simatic S7 1500

Variable speed gearbox

HD PLM

Sinamics V20

Endless Strip Production

Remote Service Framework

Some examples from our innovation pipeline

Industry Sector



…covering every step of the value chain

A holistic view of the entire product development and production processincreases productivity and efficiency in the individual process steps

Intelligent networking

1122

33 44 55

Use of most efficient technologies

1 Product design

2 Production planning

3 Production engineering

4 Production execution

5 Services

Industry Sector


Status November 2012Page 6

…connecting productivity and efficiency

Increased productivity

Greater resource efficiency

Industry Sector



…bringing intelligence to the entire product development and production process

Yesterday Tomorrow

Localautomation technology

Optimization of the entireproduction process with innovative software systems

Today

Communication-based automation

Factories are equipped with sensors and communications systems

Software systems ensure a smooth and seamless interplay

Further development within clearly drawn system boundaries

From the initial idea to production and delivery logistics and on to operation and service on the customer’s premises

Industry Sector



Intelligence in vertical productionExample Food & Beverage

Yesterday Tomorrow

Productivity throughautomation

Optimization of the corporate supply chain

Plant simulation to design productivity in the process

Integrated engineering to increase plant efficiency

Manufacturing intelligence and comprehensive operations management software

Today

Standardization across supply chain based on MES software

Tracking & tracing (food safety)

Manufacturing platform for integrated specification and laboratory management

Manufacturing intelligence for continuous improvement

Scalable MES solutions for emerging markets

Value added, industry specific solutions concepts based on

Totally Integrated Automation

Industry Sector



Intelligence in vertical productionExample Automotive Industry

Yesterday TomorrowToday

Body plants Siemens Automation the clear

#1 in car plants

Powertrain plants Solutions for powertrain Leading position with major car

manufacturers Established as most modern

manufacturing concept for motor and transmission production

Product Lifecycle Management Data management Product design Big success at VW, Daimler,

Fiat Group, etc.

Body plants

Powertrain plants

Digital enterprise Digital image of product and

production facilities

Body andpowertrain plants

Lightweight construction Fiber-reinforced composite plastic

technology

Inside electric car Powertrain Configuration tools

Production technologyfor electric cars Automation concepts for electric

motors and battery production

Industry Sector



Intelligence in vertical productionExample Metals Industry

Yesterday TomorrowToday

Automation and Drives Siemens as the world's leading

supplier of electrotechnical and automation solutions as well as of drive technology for the steel industry and OEMs

Plant engineering End-to-end supplier of

metallurgical plants

Digital plant engineering Simulation of the entire

production chain

Mechatronics Integration of automation, drive

technology, power generation and distribution

Integration of electrical and mechanical elements to produce mechatronic solutions

Product Lifecycle Management Faster project implementation

through software-based design, development and engineering

Support over the entire lifecycle

New production standards Arvedi ESP: Endless strip

production WinLink: Endless production

of round steel Heat2power: New method

for storing heat

More sustainable production Energy-efficient processes

CO2 reduction

Flexible use of raw materials Flexible (i.e. supply-and-demand-

oriented) production

Industry Sector



…establishing trusting customer relationships

Move Engineering work from >20 development centers and most important suppliers to a new consistent product development platform

Increase flexibility and innovation by representation of digital product information in one single worldwide information environment based on NX and the JT standard file format

Started using PLM Software technology in first product series in 2012

Migration to NX to be complete by end of 2015 for passenger cars and by end of 2016 for trucks

Commitment to Siemens PLM Software and its products for 10 years

Extensive Rollout of NX to Daimler and Suppliers

Industry Sector



Our organizationFour Sectors cover the global trends

1) Sector-led Business Unit 2) IPO planned

IndustryInfrastructure & Cities

Energy Healthcare

Industry Automation

Drive Technologies

Customer Services

Metals Techno-logies 1)

Rail Systems

Mobility and Logistics

Low and Medium Voltage

Smart Grid

Building Technologies

Osram 2)

Fossil PowerGeneration

Wind Power

Power Transmission

Oil & Gas

Energy Service

Imaging & Therapy

Clinical Products

Diagnostics

Customer Solutions

Industry Sector



Industry SectorWith a strong focus on industrial customers

#1 Inverters#2 CNC controllers#1 Wind turbine gear units

#1 Programmable control systems#1 Industrial switching tec.#2 Industrial software

Remote monitoring 2)

Energy efficiency consulting 2)

Modernization 2)

#1 Continuous casting lines#2 Steelmills#2 Rolling mills

Business Units1) Sector-led Business Unit 2) Market position to be determined

More than 100,000 employees generate a business volume ofsome 20 billion euros and enable a leading market position

Sensors and Communic.

PLM Software

Water Technologies

Industrial Automation Sys.

Control C. and Systems E.

Motion Control Systems

Inside Electric Car

Large Drives

Mechanical Drives

Product Lifecycle Services

Value Services

Metals Technologies 1)

IndustryAutomation

CustomerServices

DriveTechnologies

Industry Sector

Industry Sector



Profit Free cash flow

New Orders Revenue

In EUR m

In EUR m

In EUR m

1) Profit margin

In EUR m

FY 2012

2″467

FY 2011

2″752-10%

FY 2012

2″164

FY 2011

2″468-12%

In EUR m

In EUR m

FY 2012

19″985

FY 2011

20″184

In EUR m

-1%

FY 2012

20″508

FY 2011

19″590+5%

12,0%

In EUR m

14,0%1)

Industry FY 2012Weakening economy having an impact

Industry Sector



1) Profit margin

Profit Free Cash Flow

New Orders Revenue

In EUR m

In EUR m

Q4 2012

726′

Q4 2011

772′

-6%

Q4 2012

986′

Q4 2011

1″105-11%

Q4 2012

4″825

Q4 2011

4″962

In EUR m

-3%

Q4 2012

5″634

Q4 2011

5″516+2%

12,9%

In EUR m

14,0%1)

Industry Q4 2012Solid year-end quarter in less favorable markets

Industry Sector



1) Profit margin

Profit

New Orders

Revenue

FY 2012

9″547

FY 2011

8″983In EUR m

In EUR m

In EUR m

+6%

FY 2012

9″563

FY 2011

8″974+7%

FY 2012

1″335

FY 2011

1″411-5%

15,7%1)14,0%

Industry Automation FY 2012: Decline of highermargin product business reduces profitability

Industry Sector



Industry Automation Q4 2012

Strong profit performance in less favorable environment

1) Profit margin

Profit

New Orders

Revenue

Q4 2012

2″387

Q4 2011

2″237In Mio. EUR

In Mio. EUR

In Mio. EUR

+7%

Q4 2012

2″648

Q4 2011

2″487+6%

Q4 2012

403′

Q4 2011

408′-1%

16,4%1)15,2%

Industry Sector



1) Profit margin

Profit

New Orders

Revenue

FY 2012

9″395

FY 2011

9″995In EUR m

In EUR m

In EUR m

-6%

FY 2012

9″640

FY 2011

9″179+5%

FY 2012

970′

FY 2011

1″158-16%

12,6% 1)

10,1%

Drive Technologies FY 2012Profitability could not keep up with volume growth

Industry Sector



1) Profit margin

Profit

New Orders

Revenue

Q4 2012

2″324

Q4 2011

2″407In EUR m

In EUR m

In EUR m

-3%

Q4 2012

2″611

Q4 2011

2″521+4%

Q4 2012

286′

Q4 2011

333′-14%

13,2% 1)10,9%

Drive Technologies Q4 2012Profit declines on less favorable business mix

Industry Sector



Industry Automation – A leading position in automation technology and industrial software

SIMATIC S7 (PLC) SIMATIC PCS 7

SIMATIC IPC SIMATIC HMI SIMATIC IT (MES) Digital Engineering Solutions Factory

& Process Aut.

SIRIUS Control Components

SIPLUS Customized Solutions

Process Instrumentation

Process Analytics Industrial

Identification Industrial

Communication SITOP Power

Supplies

Digital Product Development (NX)

Digital Manufacturing (Tecnomatix)

Collaborative Data Management (Teamcenter)

Industrial Solutions

Municipal Solutions

Health Science Solutions

Aquatics and Leisure Solutions

#1 Industry automation systems – #2 Industry software

Industrial Auto-mation Systems(AS)

Sensors and Communication(SC)

Control Compo-nents & Systems Engineering (CE)

PLMSoftware(PL)

Water Technologies(WT)

Sektor Industry – Industry Automation Division

Industry Sector



Drive Technologies – Productivity, reliability and energy efficiency for the entire drive train

#1 Wind gear boxes – #2 CNC – #2 High-power AC drives

Sektor Industry – Drive Technologies Division

Large Drives(LD)

Inside Electric Car(EC)

Motion ControlSystems(MC)

MechanicalDrives(MD)

Drive Train components for electric cars covering converter and electric motor

Industrial, special and traction drives & motors in low and high voltage

Explosion-proof motors DC drives and motors

Motion control systems Numerical controls Servo and linear motors Condition monitoring Frequency converters

Gears and clutches for wind and industry

Geared motors

Industry Sector



Customer Services – Worldwide service offering for industrial customers from a single source

Online support Technical support Field service Retrofits Product Service

Contracts

Repair services Spare parts Commissioning Water related services

Integral plant Maintenance

Energy and Environ-mental Services(z.B. Consulting)

Condition monitoring and Reliability

Training Services Regional Projects D-F Metallurgical Services

Technology-based services overthe entire lifecycle across all industry verticals

Value Services(I CS VS)

Sektor Industry – Customer Services Division

Product Lifecycle Services(I CS LS)

Industry Sector



Metals Technologies Full liner from ironmaking to the finished product

1) Sektorgeführte Business Unit 2) Projektgeschäft

#1 Continuous casting lines – #2 Steelmills – #2 Rolling mills

Ironmaking(MT IR)

Steel Plants, Minimills &Env. Techn.(MT SM)

Casting & Rolling(MT C&R)

Electrics /Automation(MT EA)

Metallurgical Services 2)

(MT MS)

Agglomeration Blast Furnace Smelting /

Direct Reduction

LD (BOF) Converter Plants Electric

Steelmaking Long Rolling Environmental

Technology

Continuous Casting

Endless Strip Production

Hot and Cold Mills Aluminium mills Strip Processing

EA for Steel Plants EA for Casting &

Rolling EA Modernization

– Packages & Products

Electrical Services

Spares & Components Sales

Maintenance & Repair

Sektor Industry – Business Unit Metals Technologies 1)

Industry Sector



Our strategyFour key strategic levers

Strategic levers

Vertical competenceExploit market potential in high-growth vertical markets

Emerging marketsIdentify and grasp growth opportunities

Service businessStrengthen and significantly expand technology-based service business

Industrial IT and industry softwareTake the leading position in the merging of virtual and real product development and production structures

Industry Sector



Industry offering: Automotive

Vertical competence – Products, solutions, services, and verticals expertise from a single source

A

B

C

D

Industry portfolio for automotive

A

B

C

Verticals ExpertiseAutomation concepts for powertrain, building shell, etc.

ServicesLifecycle-Services for products, systems and plants

SolutionsConveyor technology in final assembly, test benches, automation engineering

ProductsTIA portfolio: SPS, HMI, SIMATIC Net, SIMATIC IT, Sirius, energy-efficient drives, SINUMERIK, etc.

D

Industry Sector



Focus on technology-based service business

Link with related vertical marketactivities on all technology and value levels

Continuing reduction of non-differentiating services

Further expansion of service business

In bn €

Service business – Increase our focus on industry expertise and technology-based service

2010

+4% p.a.

2016

> 5040

Clear responsibility for the industry business across all technologies and troughout the entire value chain

Industrial service market

Industry Sector



in Mrd. Euro

Designand virtual production

Real production

CAx (6,1 billion euros 1)) Systems engineering CAE CAD (mechanical / electrical)

Digital Manufacturing (0.3 billion euros 1))

3D process design and industrial AEC (1.3 billion euros 1))

Collaborative Product Data Management (cPDM) (4.3 billion euros 1))

Manufacturing Execution Systems (MES) (2.1 billion euros 1))

Command & Control(C&C) (0.5 billion euros 1))

Industrial software market for industrial processes

Ind

ust

rial

so

ftw

are

for

1) Market volume in 2010

The market for industrial software in the area of industrial processesis growing about 8 percent per year

2016

23

2010

15

+8% p.a.

Industrial software as a decisive growth market

in bn €

Industry Sector



Production

TIA

TIP

Production

Totally Integrated Automation

Totally Integrated Power

CAD

Idea

Service

SalesLogistic

Factory andplant design

Product- design

PLM

Digital collaboration

Product Lifecycle

Management

Automation design

Real and digital worlds of production are converging

CAE

cPDM

DM

MES

C&C

TIA Portal

3D process design

CAD

Industrial IT and industry softwareParadigm shift through PLM software

Design and virtual production

Real production

Industry Sector



Emerging markets SMART products open up new business opportunities

Emerging marketse.g. CHN, IND

Mature marketse.g. GER, USA, JPN

M1

M2

M3

M4

Product suitability Necessary product features No overdeveloped products

Optimized logistics Shorter delivery time thanks to

production close to target market

SMART products

Additional business potential

High-end productsCurrent and future focus

High quality and reliability Ruggedness Ease of use

Segment-specific sales concept Access to entire market Suitable sales channels

Local value creation 40% lower costs thanks to local

production / purchasing

SMART products for mid- and low-end markets

Requirements

Industry Sector



Emerging markets Examples of successful SMART products

Cost-optimized HMI panels addressing local requirements for emerging markets Product launch in 12/2010 SMART Line 2 Launch 07/2012 top+ award 2011 About 62000 units successfully sold in

first 10 months

Fully digital control for standard turning and milling applications Product development in China, based on NC

core development in Germany Procurement and production in China

SIMATIC SMART Line HMISINUMERIK 828D BASIC

Smart 700

Smart 1000

After launched in Q3 2011, more than 600 pieces manufactured and

entered the Chinese market

From nobody to top 3 in Chinese M3 HMI market within one year

Industry Sector



Compliance is not a program It's a way of driving business responsibly

Compliance performance remains key

Compliance failure is still a significant business risk

Compliance awareness needs to be a natural and integral part of every business decision

Integrity means that our actions complywith moral principles as well as with our Siemens norms and values

We only accept clean business

Changing compliance culture from process- to value-driven behavior

Industry Sector



Grow Industry: Through values

Excellent – Responsible – Innovative

TrustfulCollaboration

Engagement

Value creation

People

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