Siemens Smart Grid Driving Value in a Digital World Dr. Rolf Apel - Principal Key Expert for Smart Grid Solutions

Installed Power Capacity The government’s energy strategy to meet the twin objectives of satisfying demand and decrasing import dependency GDP (%) 2016 3,7 2015 2014 2,6 3,3 Europe (inc. Germany) CIS Middle East 1,4 1,8 2,0 1,0 -3,2 0,6 2,9 2,3 3,4 Turkey Energy Market 2020 Turkish Government 2023 Energy Targets Electricity Generation Breakdown (As of Feb 15) 4,2 Energy Intensity Installed Power Capacity Renewable Energy Renewable Thermic 1,9 6% 3,2 Natural Gas Increase share of renewable energy in power generation to 30% 3% 20% reduction compared to 2011 Increase power generation from 255 TWh (2014) to 500 TWh in 2023 31% 4,7 Hydrolic 34% Power Utilities Construction Oil& Gas 3,7% 4,5% Transportation&Infra 4,4% CAPEX CAGR 14-20  Installed capacity 2014:69 MW, 2023:100 MW Renewable Share 2014: 5% 21% Coal Market Developments Installed Capacity Forecast Turkey aims to have a fully competitive electricity market by 2016 Distribution Sector  Privatized Generation Sector  Ongoing EUAS : 34% Private : 66% EPIAS (Independent Energy Exchange) is officially established Distribution losses is 13% in 2014 1,6 1,7 100,0 2,6 On average, 16% of electrical energy in Turkey is lost or stolen (the “loss and theft ratio”). Uludag DISCO has the lowest loss and theft ratio at approximately 7%. Dicle has the highest ratio at approximately 61%. Turkey needs to introduce smart metering to reduce losses and thefts in distribution; to increase the quality of supply and efficiency; and to solve the problems encountered in operating day-ahead and balancing markets. 3,7 0,5 2,1 6,6 7,3 4,5 69,5 64,0 30.000 MW increase 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023  Total © Siemens AG 2015 All rights reserved. Source: TUIK, Global Insight,IHS, Bloomberg

Today’s Energy Landscape is complex and will be more so in the future

Growing share of renewables and distributed generation calls for end-to-end energy management More electrification Further development of electrification levels in emerging economies Grid modernization required in many regions Distributed generation Increasing level of renewable and distributed generation Grid stability challenges

Increasing amounts of data enables system and process optimization How to manage explosion of data? How to create value from data? Phasor Measurement Units Smart Homes Distribution Automation We are here Outage Management System upgrade Graphical Information Systems Remote Terminal Unit upgrades Substation Automation Systems Workforce Management Automated Metering Infrastructure

Increasing amounts of data enables system and process optimization The integration of new software applications and systems is one of the key challenges The utility of the future is the data empowered utility Business and customer challenges: Phasor Measurement Units How to manage explosion of data? Smart Homes How to create value from data? Distribution Automation Outage Management System upgrade You are here Graphical Information Systems Remote Terminal Unit upgrades Substation Automation Systems Workforce Management Automated Metering Infrastructure

Totally integrated OT/IT framework Enterprise IT Network Planning Asset Mgmt WMS/ Mobile Fore- casting Web Portals CIS/ CRM IVR GIS Weather Billing Enterprise Service Bus Spectrum Power Platform EnergyIP Platform Grid control applications Market driven applications SMART TRANSMISSION SMART DISTRIBUTION SMART CONSUMPTION & MICROGRIDS

Totally integrated OT/IT framework Enterprise IT IVR GIS WMS/ Mobile Asset Mgmt Billing Weather Fore- casting CIS/ CRM Network Planning Web Portals Enterprise Service Bus Spectrum Power Platform EnergyIP Platform Outage Event Services HIS IMM GDIM OM CM DNA TNA TS Market Trans Mgmt Register Billing Energy Engage DRMS DEMS/ VPP OM AMI & Device Integrations Meter Ops Revenue Protect Spectrum Power High Speed Bus CIM SCADA ICCP IFS UI Software Development Kit EnergyIP Basic Application Platform SMART TRANSMISSION SMART DISTRIBUTION SMART CONSUMPTION & MICROGRIDS

Totally integrated OT/IT framework Industrial Data Analytics Cloud-enabled Applications Public cloud Web Service Load Forecast Power Quality Asset Per- formance Web Service EnergyIP Cloud Application Platform Social Media Revenue Protect Fore- casting Bench- marking Home Energy Management Applications IVR GIS WMS/ Mobile Asset Mgmt Billing Weather Fore- casting CIS/ CRM Network Planning Web Portals Enterprise Service Bus Spectrum Power Platform EnergyIP Platform Outage Event Services HIS IMM GDIM OM CM DNA TNA TS Market Trans Mgmt Register Billing Energy Engage DRMS DEMS/ VPP OM AMI & Device Integrations Meter Ops Revenue Protect Spectrum Power High Speed Bus CIM SCADA ICCP IFS UI Software Development Kit EnergyIP Basic Application Platform SMART TRANSMISSION SMART DISTRIBUTION SMART CONSUMPTION & MICROGRIDS

Way forward: The data empowered utility Utility end-user access for consumer engagement apps Customer Access (Utilities) Asset Service Electric Vehicles Web Access to Application UI, Dashboards & Reports Asset Health Mgmt Power Quality Analytics Load Forecasting Smart Grid Analytics System Wind Secure Environment Asset Database Time-series / sensor data SQL data warehouse Residential Metering EnergyIP Platform Interfaces Sub Metering Siemens Systems Utility Systems Third Party Data Sources Advanced Distribution Management Weather Data Demographic Data Integrated Substation Condition Monitoring Meter Data Management Advanced Metering Systems Housing Data Customer Information Systems Geographical Information Systems Social Media Data Historians

Automation / Digitalization Two major trends aiding one another: Electrification & Automation / Digitalization Electrification Automation / Digitalization Heating Cooling Software Analytics Chemicals Data Communication Social media Mobility Non technical losses erwähnen Requirements of the society: Climate change – CO2 reduction / Resource efficiency / Affordability / Acceptance & CO2 determination

Enterprise service bus Standard-based Architecture for IT/OT convergence The best of two worlds IT Siemens Smart Grid integration services: Incorporated industry standards (CIM++) Business process mapping SOA-based adapter library Suite of applications and algorithms Fully enable your “best of breed” solution Worldwide integration capabilities Customer information system Big data analytics Grid planning & data model Geographic information system Enterprise service bus Real-time events and decentralized analytics Static and dynamic data based on CIM++ Static and dynamic data based on CIM++ OT Enterprise asset management Grid control Grid application Operational efficiencies IT/OT: Information Technology/ Operational Technology CIM: Common Information Model SOA: Service Oriented Architecture

Siemens keeps leading the field in addressing the energy challenge. Setting the pace Siemens keeps leading the field in addressing the energy challenge.