Industry 4.0: The Future of Manufacturing Reality!

Transformative Technologies are revolutionizing the business world and creating major challenges for manufacturing companies Page2

Digitalization changes the world Page4

the four industrial drivers into digitalization Time to market Flexibility Quality Efficiency Shorter innovation cycles More complex products Larger data volumes Individualized mass production Volatile markets High productivity Closed loop quality processes Traceability and integrated genealogy Energy efficiency and resource efficiency as key competitive factors Product and production integrated Flexible production Full process transparency Optimized production resources Page5

Even if you knew what you needed to do, could you do it efficiently, flexibly and fast? Page6

Electrification, Automation, Digitalization Siemens offers a concrete, integrated portfolio Teamcenter/ NX Simatic IT TIA Portal COMOS Mind Sphere Process Device Manager Vision Digitalization Automation 2020 Simatic Sinumerik Simotion Simatic PCS 7 Electrification Sirius Sitrans Integrated Drive Systems Sitop Sinamics Simotics 3VA Sivacon S8 Page7

Seamless integration between all the steps of the virtual and real production world From the digital model to real production / plant planning engineering Services Real world Virtual world Product design Teamcenter Suppliers Page8

Shaping the future of manufacturing for more than 50 years A history of systematic portfolio expansion 1959 Transistor 1973 PLC 1979 System 1996 TIA 2010 TIA Portal Next Relays, contactors and electron tubes are replaced by a SIMATIC-system of transistor circuits The first programmable logic control (PLC) with Silicium discrete semiconductors The SIMATIC S5 is establishing the first PLC system approach in the automation market New generation SIMATIC S7-200/300/400 and TIA as significant value-add for automation and drives S7-200 Transformational in PLC Engineering the first comprehensive engineering workbench for PLC, HMI and Drives S7-1500? SIMATIC S5 S7-300 S7-400 TIA Portal Past Wired I/O PROFIBUS PROFINET Today Future Page9 In over 50 years SIMATIC has changed gradually from an electromechanical to a mainly software based product

Industrial software Systematic expansion of our portfolio for design, simulation and testing CAD system (NX), PLM software (Teamcenter) Simulation and testing (LMS Virtual.Lab, Imagine.Lab, Test.Lab) Flow simulation (STAR-CCM+ and others) Shared environment for optimizing the product development process Multidisciplinary CAE environment Uniform data management for all stages of the value chain Behavioral simulation: 1D comprehensive simulations 3D mechanical simulation, e.g. stiffness, noise and vibration Testing: Solutions for prototype testing (stationary and mobile) Computational Fluid Dynamics (CFD) for flow analysis Heat transfer simulation Wide range of optimization possibilities: 3D simulation and automated feedback to CAD/CAE Year of acquisition: 2007 Year of acquisition: 2012 Year of acquisition 1 : 2016 1 Closing expected for H2/2016 Page10

Our comprehensive portfolio connects the steps of the value chain A few examples Product design planning engineering execution Services Additive Manufacturing Enabling the optimization of parts and business cases Systems Engineering Integrated software solution for engineering and simulation of production lines and machines. Control Panel Engineering Using simulation tools and data to quickly engineer control panels Energy Data Management Optimizing flows and consumption of energy at the earliest stage Virtual Commissioning Optimize your automation systems and debug PLC programming in a virtual environment Plant Data Services Building an open and secure industrial cloud platform with analytical apps and standardized device connectivity enabling Siemens and customers to monetize the potential of industrial data. Page11

Our competence to integrate product and production lifecycle is based on leading-edge technologies along the value chain Product design planning engineering execution Services NX Solid Edge Simcenter, e.g. CD-adapco Fibersim Support & Consulting Services Tecnomatix TIA Portal WinCC SINUMERIK CNC SIMATIC IPC SIMATIC HMI Asset Optimization Services SIMATIC IT SIMATIC PLC SINAMICS SIRIUS Plant Security Services MindSphere Traditional Services Teamcenter Page12

Our own Siemens factories Significant elements of Industry 4.0 already in place Time-to-market Flexibility Quality Efficiency Amberg Electronics Factory of more than 120 variants per day, based on 75% automation Factory produces 12 million of Simatic products p.a. 350 changeovers per day to ensure 24-hour delivery reliability Machines and computers handle 75% of the value chain The production system is closely networked with R&D Less than 11 defects per million products Quality rate of 99,9988% More than 75% capacity utilization (20% greater flexibility) increased seven times compared to 1989 Page14

Our own Siemens factories Significant elements of Industry 4.0 already in place Time-to-market Flexibility Quality Efficiency Electromotor Plant in Mohelnice 65 000 product variants shipped worldwide 1,126 mil. of electromotors and components produced a year (2015) Customers in 170 states globally 1 300 products variants shipped to European customers in 48 hours Delivery service provided 24 hours a day, 7 days a week to all customers globally 96% of (LT) delivery loyalty 800 orders daily 55% of all orders processed automatically Automation significantly reduces order reaction times Page16

Maserati enhances its competitiveness by digitalizing its core processes Reducing the time to market Enhancing flexibility Increasing efficiency Challenges for the automotive industry Shorter innovation cycles More complex products Larger data volumes Individualized mass production Volatile markets High productivity Energy and resource efficiency as key competitive factors Example Maserati Time-to-market reached in 16 instead of 30 months 30% shorter development time Suppliers connected to data stream Ghibli available in 27 versions, 13 colors, 205 configuration options, resulting in 70.000 combinations 3 times more cars produced than before at same very high quality standards Integration of two new assembly lines into existing factory 1 Product design SIMATIC NX CAD NX CAE LMS Teamcenter 2 planning Process Simulate Plant Simulation Teamcenter 3 engineering 4 execution SIMATIC IT SCALANCE SITOP SIRIUS 5 Services Traditional Services Page17

Computerized Maintenance Management System COMOS MRO in Škoda Auto a.s. plant Kvasiny Equipment maintenance Page18 Reduced risk of new downtimes, risk of direct and future damages lowered by 50 70% Equipment availability up to 98% Reduced downtime through single source electronic documentation, available on every site via electronic PAD system Failure records available for each individual production technology Improved spare parts availability and logistics Electronic spare parts management Optimized assets through transparent warehousing Faster ordering system

Siemens is leading the way with industrial security concepts for comprehensive security on the production and process levels Holistic Security Concept 5 levers Plant security System integrity Network security Security features Process security Incident management Security awareness IT infrastructure Page19

Siemens Plant Data Services drive continuous and replicable business results From Data to Value Data analytics and simulation Visualization & recommendations Master asset uptime Optimize energy performance Cloud-based analytics ecosystem Secure storage and data transfer Data collection Maximize process efficiency Enhance industrial cyber-security Page20

Siemens Cyber Security Operation Centers for the protection of industrial facilities Operation centers for industrial security in Europe and the USA Continuous surveillance of industrial facilities around the world Early risk detection and coordinated countermeasures Page21

New level of energy efficiency through cloud-based services Example pharmaceuticals company Alcon 12% less energy consumption with Energy Analytics Service Worldwide access to dashboards for situational analysis of production equipment Data from > 400 measurement points Access to global network of networks via the cloud Page22

It is the time to start become a Digital Enterprise Page23