Get to know Siemens!

© Siemens AG, 2012

Siemens Energy Sector – Clean electrificationof society

Page 2 May 2012© Siemens AG 2012

Siemens Energy Sector

Contents

Answers for an energy system in transition01

Energy Sector – Organizational structure, portfolio, figures02

Market development03

Strategic focal points04

Energy Sector history05

Environment, health & safety management and compliance06



The world is in the midst of afundamental transformationThe world is in the midst of afundamental transformation

Page 3 © Siemens AG 2012



Growing demand for electricity Climate changeDwindling resources


We are facingmajor challenges ...We are facingmajor challenges ...



... but we have theright answers.

... but we have theright answers.




... and we have more than one answer

... because one answer isn’t enough.



Contents

Answers for an energy system in transition01


Market development 03

Strategic focal points 04

Energy Sector history 05

06 Environment, health & safety management and compliance



Divisions Fossil Power

Generation Wind Power Solar & Hydro Oil & Gas Energy Service Power

Transmission

Divisions Imaging &

Therapy Systems Clinical Products Diagnostics Customer

Solutions

Divisions Industry

Automation Drive

Technologies Customer

Services

Divisions Rail Systems Mobility and

Logistics Low and Medium

Voltage Smart Grid Building

Technologies

OSRAM 1)

Siemens has answers – Four Sectors close to the customer

Energy Healthcare Industry Infrastructure & Cities

1) In fiscal 2011, Siemens announced its intention to publicly list OSRAM and retain a minority stake as anchor shareholder in OSRAM AG for the long term.



Top performance in six Divisions

Siemens Energy Sector – Clean electricity for the world

Fossil Power Generation

(E F)

Wind Power

(E W)

Solar & Hydro

(E X)

Oil & Gas

(E O)

Energy Service

(E S)

Power Transmission

(E T)

Additional

200 MWthrough

modernizationin 2011

World record

800 kVfor direct current

transmission

World record

33.9%efficiency for PV

with concentrated photovoltaic

module

Deep-sea capable

36 kVSeabed power

distribution at depthsof up to 3,000 m

World record

60.75%efficiency for

combined cyclepower plants

New performancedimensions

6 MWfor wind turbines



Siemens Energy Sector – Organizational structure

Business Segments

Hydro & Storage (E X HS)

Business Segments

Conventional Island (E F CI)

New Technologies(E F NT)

CEO

Solar Thermal Energy(E X STE)

Photovoltaic(E X PV)

Industrial Power(E O IP)

Compression &Solutions (E O C&S)

Oil & Gas and IndustrialApplications Services(E S SO)

Service Fossil(E S SF)

TurboCare (E S TC)

Service Renewables (E S SR)

Products (E F PR)

Energy Solutions(E F ES)

Instrumentation &Electrical (E F IE)

1) Member of the Managing Board of Siemens AG

Energy SectorCEO Michael Suess1)

Americas(E W AM)

APAC(E W APAC)

EMEA(E W EMEA)

Bu

sin

ess

Un

its

Sec

tor

Div

isio

ns

Fossil Power Generation (E F)

Roland Fischer

Wind Power (E W)

Felix Ferlemann

Solar & Hydro (E X)

Ted Scheidegger

Oil & Gas (E O)

Adil Toubia

Energy Service (E S)

Randy Zwirn

Power Trans-mission (E T)

Karlheinz Springer

TransmissionSolutions (E T TS)

High VoltageProducts (E T HP)

Transformers(E T TR)



Siemens Energy Sector – Organizational structure and portfolio

CEO

Energy SectorCEO Michael Suess

Po

rtfo

lioS

ecto

rD

ivis

ion

s

Products (e.g.: large combined cycle gas & steam turbines, generators), energy solutions

Power plant solutions (e.g. turnkeypower plants)

Instrumentation & controls

Fuel gasificationsystems, dismantling projects

Wind turbines(on- and offshore)

Large photovoltaic (PV) plants

Solar-thermal power plants

Hydro power plants (small hydro power plants, tidal power plants)

Energy storage

Gas turbines(<50 MW),

Steam turbines(≤250 MW)

Compressors Oil & gas solutions

(up-, mid- and downstream,power supplysystems for theoil and gas industry)

Solutions forurban utilities and industrial power supplies

Service für oil & gas and industrial applications

Service for large power plants, e.g. spare parts, long-term service contracts, maintenance & repair, modernization and upgrades, air filter systems and services

Services for wind power plants

Equipment and systems for AC and DC high voltage transmission (substations, gas- and air-insulated switch-gear, gas-insulated power lines, circuit breakers, components

Powertransformers

Distribution transformers

Fossil Power Generation (E F)

Roland Fischer

Wind Power (E W)

Felix Ferlemann

Solar & Hydro (E X)

Ted Scheidegger

Oil & Gas (E O)

Adil Toubia

Energy Service (E S)

Randy Zwirn

Power Trans-mission (E T)

Karlheinz Springer



Siemens Energy Sector – Strong global footprint

Employees Revenue1) (in € bn.) Important production sites

Status: September 30, 2011 1) International business (excluding intersegment business with other Sectors)

Americas

Germany

Asia, Australia

Europe, C.I.S., Africa,Middle East (excl. Germany)

22

1.7

27,652

34%

7%

23.5%

247.117,850

22% 29% 25.5%

243.99,952

12% 16%25.5%

2412.026,800

33% 49% 25.5%



Siemens Energy Sector – Customer proximity through global footprint

Locations forengineering /production

Status: September 30, 2011

AberdeenHebburn

Jundiaí

Budapest

Hengelo

Finspong

Bogota

Grenoble

Johannesburg

Lincoln

Fort MadisonJackson

GuanajuatoQuerétaro

Minneapolis

Trois Rivières

JakartaCilegon

NanjingNew DelhiGurgaon

Shanghai

Singapore

Jinan

Aurangabad

Karachi

Vadodara

SabugoAmora

TrientCairo MontenotteMilan

HuludaoMiddletown

TrentonCharlotteOrlandoFort PayneAlpharetta

Linz Weiz

York

Oslo

Guangzhou

WuxiHangzhou

Wadeville

Shenyang

Beit Shemesh

Kalwa

AalborgBrandeHelsingør

Vienna

Bad HersfeldBerlinDuisburg ErlangenFrankfurtKarlsruheKölnMülheimOffenbach

BambergDresdenErfurtFrankenthalGörlitzKirchheimLeipzigNuremberg

St. Petersburg

Brno

Istanbul

Zagreb



1) w/o AREVA impact

€ m1 HY 2011 1 HY 2012

Actuals Actuals Change yoy

New orders 16''608 12''998 -22%

Revenue 11''814 13''064 11%

Sector Profit 1''6021) 1''054 -547'

Margin 13,6%1) 8,1% -5,5%p

Free Cash Flow 646' 100' -546'

EBITDA Margin 15,1% 9,0% -6,1%p

Siemens Energy Sector – Figures for fiscal 2011



September 2011

Inauguration of HVDC connection between Spain and Mallorca

September 2011

Long-term service contract for 14 SGT-800 gas turbines for customer Gulf JPower in Thailand

December 2011

First order for the newly developed SGT-750 industrial gas turbine from Siemens

October 2011

Commercial start of the 30-MW PV power plant in Les Mées in southern France

Siemens Energy Sector – Highlights in the first six months of fiscal 2012

December 2011

10,000 Siemens wind turbines with a total capacity of 14,000 MW installed

October 2011

Operation begins after only 28 month’s construction time: the Nhon Trach 2 CCPP in Vietnam



Contents

01


Market development03




Answers for an energy system in transition



Average investments per year (2010–2030) worldwide

Stable market outlook – Need for investmentsof over one billion euros a year in the energy sector

500–700

300

200

in millions of €

Gas

Others

Oil

Powerdistribution

Powertransmission

70%

30%

40%60%

44%50%

6%

Source: IEA 2010; Siemens

Others

Primary energy Power gridsPower generation

Renewableenergies



Global electricity market – Demand for electricity is steadily growing

Source: Siemens

Power generation mix worldwide, in TWh

Coal

Oil

Gas

Nuclear

Water

Renewableenergies

37,100

34%04/12/23

3%

24%

11%

15%04/12/23

13%04/12/23

41%

4%

22%

13%04/12/23

16%04/12/234%

68%

61%

+2.8% p.a.

22,100

20302011



642 653

422

511

313

100292

2474

3630

915

Global power plant market – Capacities will double by 2030

New capacities2012–2030

Dismantling(2012–2030)

Installedcapacities 2011

Installedcapacities 2030

Source: Siemens

Development of power plant capacities worldwide, in gigawatts (GW) 27

04/12/2340

390

1,08904/12/23

22204/12/2339604/12/23

1,084

861

04/12/2319904/12/23224

04/12/23165 14

04/12/23541

848

2,318

999

04/12/23

04/12/2326

Coal power plants

Gas power plants

Nuclear power plants

Hydro (incl. ocean power)

Solar thermal

Motors

Wind

5,816

21716704/12/23

Combined cyclepower plants

Geothermal

Biomass, wastes

Photovoltaics

10,5277,015

2,30404/12/23

04/12/232,058

2,726

04/12/23598

1,780

1,206

716

1,409

1,407

372

705



84704/12/23

13804/12/23

190

93%110%

-0.7%

04/12/239%

The markets are shifting – Growth primarily in emerging countries

USA

Russia

Japan

China

Brazil

Europe1)

Middle East

Africa

Germany

Source: Siemens 1) SWE, NWE, GER, CEE

218

Growth in power generation, 2011–2030 [% of TWh]

New installations 2011–2030 [GW]

763

India

278% 1,683

110%

19543%

178-5%

33%

Australia

75

437

121%

28%

620



Our view of the market – The energy chain is becoming a power matrix



Differing markets – Individual challenges and solutions

Innovative technologies

Economic efficiency

Climateprotection

Reliablepower supplies

Resourceefficiency

Customer-specific

solutions

Conventionalpower plants

Energy storage, management of

balancing power and consumption

Renewableenergies

Power grids

Energy mix in power generation

Country-specific challenges



Different challenges in differing markets – Worldwide examples

Middle East: By increasing efficiency andusing renewable energies, over one quartermore of the region’s annual oil and gas production can be marketed

India: “Power-for-all” program aims at achieving economic growth through electricity (+350 GW capacity by 2020, of which +215 GW is with coal)

USA: Priority is affordable energy, also rising costs for CO2 abatement (average price of electricity: <10 USct/kWh)

China: Further expansion of nuclear power (from 12 GW today to 83 GW installed capacity by 2020), however with new safety standards

Germany: Planned energy transition: at least 80% CO2 abatement by 2050

Economicefficiency

Climateprotection

Reliablepower supplies

Resourceefficiency

Country-specific challenges



Contents

01



Strategic focal points04

Energy Sector history 05





Siemens Energy Sector – Strength through market leadership

Offshore wind power plants

Advanced gas turbine series

Offshore grid connections

Power plantinstrumentation & controls

High Voltage Direct Current Transmission

Industrial steam turbines

No. 1No. 1 No. 1No. 1 No. 1No. 1

No. 1No. 1 No. 1No. 1 No. 1No. 1



Siemens Energy Sector – Strength through regional setup

Example production: Market coverage through production locations

Asia-Pacific

South America

North America

India

Middle East / Africa

Russia / C.I.S.

Germany / Europe

Goal: Continual expansion of footprint in the growth markets

Realization: Shifting of all value chains into the regions

Products will increasingly be specified according to regional needs



~ €970 million invested in research anddevelopment

2012 2020 2030

Fossil Power

RenewablePower

Oil & Gas

Transmission

~ 25,000 engineers~ 4,600 patent registrations~ 19,700 active patents

Innovative power (in FY 2011)

Flexibility

Cost optimization and higher efficiency

Secure and reliable sub-sea grids

Flexible and efficient Super Grids

Siemens Energy Sector – Strength through innovative power



World record

47% 60.75%

The combined cycle power plant in Irsching Block 4 achieved an efficiency rating of 60.75 percent in a test run. The heart of the plant is the innovative SGT5-8000H gas turbine from Siemens, with a nominal capacity of 375 MW. The power plant beats all previous records in capacity, efficiency and operating flexibility.

The Waigaoqiao II hard coal power plant in Shanghai with a capacity of 2 x 900 megawatts points to the future: Thanks to the advanced power plant technology using supercritical steam parameters (high steam temperatures and pressures), Waigaoqiao II saves 2.1 million tons of CO2 a year.

Siemens Energy Sector – Success throughhigher efficiency in fossil power plants

World record

efficiency incoal-fired power plants

efficiencyin combined cycle power plants



Additional

200 MW 800 kV

The world‘s most powerful HVDC transmission line with 800 kV voltage in China transports around 5,000 mega-watts of electricity from the hydro power plants in Yunnan Province over 1,400 kilometers to the urban centers in Guangdong Province. This saves 30 mega-tons of CO2 every year.

Through the modernization and upgrading of gas and steam power plants worldwide, Siemens achieved 200 additional megawatts of capacity in 2011 with the same fuel consumption.

Siemens Energy Sector – Success through higher efficiency in power plants and power transmission

World record

for direct current transmissionthrough modernization in 2011



World record

33.9% 6 MW

The new 6-megawatt wind turbine from Siemens is especially light at 350 tons, and thus offers both higher performance as well as advantages of substantially lower costs in its class.

With its highly concentrating photovoltaic modules, Semprius – a strategic partner of Siemens headquartered in the U.S. – achieved a record efficiency of 33.9 percent.

Siemens Energy Sector – Success throughhigher efficiency in renewable energies

efficiency withconcentrated photovoltaic module

for wind turbines

New performance dimensions



Contents

01









Siemens Energy Sector – Energy innovations for over 140 years

Dynamo

1866

Benson boiler

1927

First public alternating current power plant

1892

Expansionswitch

1930

1866 2011

1903

Siemens-Schuckert-Werke

First SF6 circuit breaker

1964

Infinitely variable three-phase compensator

1989

World’s first800-kV HVDC power line

2008

World record in CCPP efficiency

2002

Most powerfuldirect-drive wind turbine in the world

2011

World record in CCPP efficiency



1903 2012

1903 Siemens-Schuckert-Werke

1998SiemensWestinghouse

2001Demag Delaval

1969 Trafo Union

1969 KWU

2003 Alstom Industrial Turbines

2004 Bonus Energy

2006 VA TECH T&D

2007 Kühnle, Kopp & Kausch AG

2009 Solel

2012Expro Connectors

2011Bennex und Poseidon

2011NEM B.V. und NEM Energy Services

Siemens Energy Sector – Strategic growth over generations



Contents

01





Environment, health & safety management and compliance 06

Antworten für ein Energiesystem im Wandel



EHS@SiemensEnergy Sector

Safety

▶ Work safety▶ Radiation protection▶ Hazardous goods

transport▶ Technical risk

managementFire protection, civil protection

Health protection

▶ Health promotionHealth programs and services, training and consulting

▶ Social counseling Psychosocial services and management support

▶ Medical servicesIdentification and minimization of work risks, medical counseling and care

Environmental protection

▶ Industrial environmental protection Climate protection, energy & waste management, pollutant reduction, protection of air, soil and water

▶ Product-related environmental protection Product design and recycling

Our goal: “Zero Harm”

Environmental protection, health and safety –a central task for everyone



Siemens Energy Sector – Compliance is the way we do business

“Under the term compliance, we under-stand observance of the laws of each country in which we operate, as well as our applicable Siemens guidelines and regulations. Compliance is an integral part of our business principles and promotes integrity at Siemens. Compliance is more than a program – it is the way we do business.”

Dr. Michael SuessCEO Energy Sector

© Siemens AG, 2012

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