SIEMENS AG Innovation Day USA 2017 | Princeton, March 27, 2017 Dr. Roland Busch, Chief Technology Officer and Member of the Managing Board of Siemens AG
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siemens.com/innovationusa
Notes and forward-looking statements
This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens' management, of which many are beyond Siemens' control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Risks in the Annual Report. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.
This document includes - in IFRS not clearly defined - supplemental financial measures that are or may be non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens' net assets and financial positions or results of operations as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures may calculate them differently.
Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
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March 27, 2017
Dr. Roland Busch, CTO Siemens AG
Vision 2020 is our strategy
Global trends
Digitalization
Globalization
Urbanization Demographic
change
Climate change
Market development (illustrative only)
Digitalization
Automation Electrification
2017
~+8%
Market growth
+3 - 4%
Market growth
+1 - 2%
Market growth
2020
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Power
generation
Power transmission, power distribution and smart grids
Efficient healthcare delivery
Efficient use
of energy
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March 27, 2017
Dr. Roland Busch, CTO Siemens AG
We're increasing R&D spending
Research and development spending in billions of $ and as a % of revenue
4.3 4.8
5.6%5.9%
+~25%
5.0
5.9%
~5.4FY 2014 FY 2015 FY 2016 FY 2017e
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Dr. Roland Busch, CTO Siemens AG
next47 fosters disruptive ideas and drives innovation
Strategic focus
Innovation fields
Funding volume:
>$1bn in funds over 5 years
Focus on investments in start-ups
Strategy:
Capital, Create, Catalyst
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Distributed electrification
Artificial intelligence
Block chain applications
Autonomous machines
eAircraft
. . .
Connected (e-)mobility
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March 27, 2017
Dr. Roland Busch, CTO Siemens AG
Digitalization provides growth momentum
Digitalization
+12%1 | ||||
Siemens Software ~$3.5bn | Siemens Digital Services ~$1.1bn | |||
MindSphere - Io | T | operating system | ||
Revenue FY 2016
Customer value
Time-to-market
Efficiency
Flexibility
Productivity
Energy and resource optimization
Extendibility (open standards)
Enhanced
Automation
~$19bn
Classic
Services
~$18bn
Automation
Enhanced Electrification
~$45bn
Electrification
1 Comparable; portfolio adjusted
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March 27, 2017
Dr. Roland Busch, CTO Siemens AG
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Page 7 March 27, 2017 Dr. Roland Busch, CTO Siemens AG
Our offering separates us clearly from our competitors
Deep domain-knowhow in a broad range of markets and industries
Strong installed base/connected fleet
Powerful eco-system
Unmatched digital portfolio: MindSphere, software, services, security
Numerous Siemens-internal use cases as proof points
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March 27, 2017
Dr. Roland Busch, CTO Siemens AG
Holistic approach to meet customer needs
Design & Engineering
Automation & Operation
Maintenance & Utilization
Siemens Software Siemens Digital Services
MindSphere The cloud-based, open IoT operating system Platform as a Service
Enabler: Infrastructure as a Service (storage, processing power, provider agnostic)
Digitally enhanced Electrification and Automation
Connectivity
Open interfaces
Data analytics
Artificial intelligence
Customer-specific apps by Siemens or third-party suppliers
Cost transparency
Holistic IT security concept
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March 27, 2017
Dr. Roland Busch, CTO Siemens AG
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Page 9 March 27, 2017 Dr. Roland Busch, CTO Siemens AG
Open partner eco-system
Consulting/strategy partners
Technology Provider
Application Developer
MindSphere
The cloud-based, open IoT operating system
IaaS Provider
System Integrator Connectivity Developer
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March 27, 2017
Dr. Roland Busch, CTO Siemens AG
Holistic approach to meet customer needs
Design & Engineering
Automation & Operation
Maintenance & Utilization
Siemens Software Siemens Digital Services
$3.5
Unmatched Software Suite
~70m contracted meters bn
$1.1bn
800k connections,
$3.2bn order backlog at Power
MindSphere The cloud-based, open IoT operating system Platform as a Service
Enabler: Infrastructure as a Service (storage, processing power, provider agnostic)
Digitally enhanced Electrification and Automation
#1 position in automation,
~30mn automation systems
Holistic IT security concept
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March 27, 2017
Dr. Roland Busch, CTO Siemens AG
Holistic approach to meet customer needs
Design & Engineering
Automation & Operation
Maintenance & Utilization
Siemens
Software
EnergyIP
Design & Simulation
NX, LMS, CD-adapco …
Comos, Tecnomatix
…
Siemens Digital Services
Navigator
Railigent
FlexLTP
Teamplay …
MindSphere The cloud-based, open IoT operating system Platform as a Service
Enabler: Infrastructure as a Service (storage, processing power, provider agnostic)
Digitally enhanced Electrification and Automation
Holistic IT security concept
Unrestricted © Siemens Corp. 2017
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March 27, 2017
Dr. Roland Busch, CTO Siemens AG
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Page 12 March 27, 2017
Smart power grids
Challenge
Community-owned electric and water utility
in Jacksonville, FL, to upgrade its infrastructure towards advanced metering
Solution
EnergyIP: collects, consolidates and validates meter data and outage events, passes data on to automate workflows
Outcome
Utility can remotely connect-disconnect customers at any time; improved reliability, maintenance savings of >$1.5m in 1.5 years
Dr. Roland Busch, CTO Siemens AG
Holistic approach to meet customer needs
Design & Engineering
Automation & Operation
Maintenance & Utilization
Siemens
Software
EnergyIP
Design & Simulation
NX, LMS, CD-adapco …
Comos, Tecnomatix
…
Siemens Digital Services
Navigator
Railigent
FlexLTP
Teamplay …
MindSphere The cloud-based, open IoT operating system Platform as a Service
Enabler: Infrastructure as a Service (storage, processing power, provider agnostic)
Digitally enhanced Electrification and Automation
Holistic IT security concept
Unrestricted © Siemens Corp. 2017
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March 27, 2017
Dr. Roland Busch, CTO Siemens AG
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Page 14 March 27, 2017
Optimize building performance
Challenge
Residential and commercial buildings are to account for 40% of total U.S. energy consumption
Solution
Navigator: Bank company Capital One monitors >20 office buildings to improve energy efficiency
Outcome
10% energy savings, based on 14m data
records per week
Dr. Roland Busch, CTO Siemens AG
Unrestricted © Siemens Corp. 2017
Page 15 March 27, 2017
Amtrak locomotives
Challenge
Amtrak aims for maximum availability
of 70 Vectron locomotives for their North East Corridor High Speed Passenger Service
Solution
Railigent: Maintenance optimization, smart
monitoring and obsolescence management
Outcome
Target is to guarantee >99% availability
and reliability of rolling stock
Dr. Roland Busch, CTO Siemens AG
Unrestricted © Siemens Corp. 2017
Page 16 March 27, 2017
Machine learning -
NOx emission reduction
Challenge
Conventional NOx emission reduction approaches reaching limits
Tightening environmental regulations
Solution
Machine learning algorithms for optimization of control parameters
Outcome
15-20% additional NOx reduction
Providing more sustainable balancing power
Dr. Roland Busch, CTO Siemens AG
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Divisions
Customer value Time-to-market Efficiency Flexibility Productivity
Corporate Technology
Regions
Unrestricted © Siemens Corp. 2017
Page 19 March 27, 2017 Dr. Roland Busch, CTO Siemens AG
New York 2016
8.6 m
Inhabitants
$570 bn
GDP ($66,000
per capita)
Extreme weather conditions increase pressure on resilience of infrastructure
ConEd grid automation
Grid stabilization
Hudson 660MW HVDC
~10% of peak load served
Microgrid for Co-op City
Reliable energy supply for
> 60,000 people
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Page 20 March 27, 2017 Dr. Roland Busch, CTO Siemens AG
New York 2030
9.5 m
Inhabitants
→ +10%1
70%
Of energy supply still conventional
60%
Fewer
CO2 emissions1
1 compared to 2016
Unrestricted © Siemens Corp. 2017
Page 21 March 27, 2017 Dr. Roland Busch, CTO Siemens AG
New York 2030
MindSphere
eCar charging
20% of all cars are eCars and balance grid peak loads
Energy trading/ Block- chain
Demand manage- ment
Energy trading/ Blockchain
PV on all roofs supply 25% of the city's energy demand
1 compared to 2016
Demand management
CHP in every public building lowers energy consumption by 30%1
eCar charging
Unique digital offering to meet a city's needs
Operating system of a city
Siemens Software and Digital Services
EnergyIP Fault Detection
Demand Manage- ment
Energy Trading/ Blockchain
Leak Detection
eCar Charging
Railigent Storage CarSharing
Intermodal Traffic Manage- ment
Fleet Manage- ment
Traffic Manage- ment
MindSphere The cloud-based, open IoT operating system Platform as a Service
Enabler: Infrastructure as a Service (storage, processing power, provider agnostic)
Electrical field devices of a city
Holistic IT security concept
Unrestricted © Siemens Corp. 2017
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March 27, 2017
Dr. Roland Busch, CTO Siemens AG
Siemens AG published this content on 27 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 March 2017 11:00:21 UTC.
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