Cities as customers Delivering sustainable urban infrastructure
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1 Cities as customers Delivering sustainable urban infrastructure
2 The global megatrends pose challenges to decision-makers in cities Megatrends Urbanisation & Globalisation Urban population: 70% (2050) vs. 50% (2010) Growth in emerging markets give rise to megacities More global trading; more global partnerships Strongest growth in BRIC: China s GDP exceeds the USA before 2040 Demographic Change World population: 9bn in 2050 vs. 7bn in 2011 Ageing societies: People aged 65 and over will almost triple by 2050 Climate Change Climate change is a threat: The cost of inaction will exceed the cost of taking early action Cities produce 70% of the world s GHG Sustainable Urban Development Cities are competing globally to make themselves attractive to live and invest in Environment Competition Governance Quality of Life Challenge to balance between competitiveness, environment and quality of life, and to finance infrastructure solutions Realise carbon abatement goals Cities are major role players in addressing the impact of these trends and must take up the responsibility Page 2
3 and must be addressed sustainably More people Ageing infrastructure Limited funding Diverse interests ENERGY MOBILITY SAFETY & SECURITY WATER Clean energy Energy efficiency / savings Water security Affordable healthcare Integrated transport Safe places to live, work and play HEALTHCARE Page 3
4 Many cities have committed to CO 2 reduction targets Cities and their CO 2 reduction / energy efficiency targets Toronto London Copenhagen Chongqing 3) % % Carbonneutral 1) % Munich 2) Wuhan 3) Mexico-City New York % % % -12% Jakarta % Singapore % 1) Carbon-neutral means that the city can offset its emissions by investing in Kyoto Protocol-style projects that reduce pollution elsewhere 2) Target for Munich per capita against 1990 level 3) Relative target for China per unit of economic output (GDP) Source: Desk research by the Sustainable Cities team April 2012
5 The basic needs of cities drive the market for intelligent infrastructure solutions Efficient transportation of people and goods Reliable and efficient supply of energy Comfort and security Sustainable technologies shifting towards low emission solutions Requirements are drastically changing from single products to integrated and intelligent infrastructure solutions April 2012
6 The Siemens portfolio addresses the impact of global trends Attractive markets driven by global megatrends Climate change Demographic change Globalisation Urbanisation Energy Healthcare Industry Infrastructure & Cities (IC) Fossil Power Generation Imaging & Therapy Industry Automation Rail Systems Wind Power Clinical Products Drive Technologies Mobility and Logistics Solar & Hydro Diagnostics Customer Services Low and Medium Voltage Power Transmission Customer Solutions Smart Grid Oil & Gas Building Technologies Energy Service April 2012
7 The IC Sector provides a more focused approach to the infrastructure and cities market Siemens' infrastructure and city market in billion Infrastructure spending worldwide amounts to 2 trillion ~300 Market addressed by IC: 225 bn ~ trillion ~ 300 bn ~65 ~75 ~75 Market addressable by Siemens: About 300 billion per year Siemens infrastructure & city market 2010 Transportation & Logistics Power Grid Solutions & Products Building Technologies Other (Osram, Healthcare, Water) April 2012
8 Page 8
9 Case study: London proves our successful approach Example of successful co-operation in London Siemens and London a close partnership We started working intensively with London in 2007 City Account Manager appointed to drive early engagement and represent our entire portfolio We offer the specific domain know-how Inter-urban mobility: vehicles for regional trains Automated video surveillance: Comprehensive CCTV services to improve community safety Hybrid Buses: Consume ~40% less fuel and emissions Toll System: City congestion charging system and enforcement of low-emission zone E-mobility project: Supply of software solutions, related services and charging stations Smart Grid: Collaboration with UK Power Networks to develop a power distribution concept for 2020 April 2012
10 Thank you for your time and attention! Page 10
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