Growing Offshore in Turbulent Times Michael Hannibal, Head of Sales, Offshore Business Unit, Siemens Wind Power

Page 2 Content Our Market Our Performance Our Strategy Our Technology Our Team

Page 3 More difficult times have come...

Page 4 …but it still can be done!  DONG Six Pack - Walney 1 - Walney 2 - London Array + 3 Not Yet Disclosed  Sheringham Shoal  Baltic 1  Butendiek (Pre-Contract) Siemens Offshore Order Backlog : ~ 3.3 GW

Page 5 Global Offshore Turbine Installations SWP’s Market Appraisal 2008 Global annual offshore turbine installation in MW After many quite years the offshore market is now taking off Worldwide installed until 2007 = MW SWP TARGET > 40% worldwide market share

Page 6 Global Offshore Turbine Installations SWP’s Market Appraisal 2009 Global annual offshore turbine installation in MW The financial crisis has its impact on the offshore market, but did not strangle it Worldwide installed until 2008 ~ MW SWP TARGET ~ 50% worldwide market share

Page 7 Offshore wind is in a steep development phase Source: MAKE consulting, Siemens E R WP OF BD Customers Avg. turbine size Avg. rotor diameter # Significant manufacturers Avg. yearly installed capacity Avg. wind farm / project size # countries with offshore wind Avg. water depth Global utilities, large consortia, non-utility investors European utilities Scandinavian utilities 5-6 MW 3 MW< 0.5 MW m98 m37 m >30 m15 m5 m 3> MW230 MW3 MW >500 MW90 MW6 MW s2000s

Page 8 Eight 100 x 100 km offshore wind farms could produce TWh – enough for all of Europe

Page 9 Content Our Market Our Performance Our Strategy Our Technology Our Team

Page 10 Gunfleet Sands (with Titan II)

Page 11 Rhyl Flats

Page 12 Horns Rev is nearing completion „Nobody else has ever installed wind turbines so far offshore …“ wind turbines so far offshore …“

Page 13 HYWIND delivered and installed

Page 14 Upcoming German Offshore Projects Baltic I & Butendiek Baltic 1  Distance to Shore 15 km  Water Depth 19 m  21 SWT WTGs  Installation Q  EnBW Ostsee Offshore GmbH Butendiek  West of Sylt  Distance to Shore 35 km  Water Depth 20 m  80 SWT WTGs  Installation Q  Butendiek Offshore Windpark GmbH & Co. KG

Page 15 Upcoming UK Project Greater Gabbard Greater Gabbard  North Sea, of Suffolk coast  Water Depth m  140 SWT WTGs  Installation 2009 / 2010  Scottish & Southern Energy and RWE Innogy

Page 16 Content Our Market Our Performance Our Strategy Our Technology Our Team

Page 17 SWP’s strategy is defined by stepping up a learning curve Project com- plexity Project Size SWP has chosen an incremental learning approach to manage the risk on the supplier side, which starts with a stringent project selection process German Offshore New Markets; North America APAC Turn Key 4 67 Danish Nearshore Projects UK Round 3 UK Round L&ID Gunfleet Sands 2 Burbo Banks Lillgrund 1

Page 18 One supplier for generation and transmission Oil&Gas Power Generation Power Transmission Power Distribution Renewable Energy Now selling Siemens Offshore Package – Buy your Turbines with a Grid !

Page 19 Content Our Market Our Performance Our Strategy Our Technology Our Team

Page 20 Future trends in offshore wind energy Siemens Offshore Technology – Developments to meet the challenge Larger projects Projects further offshore New markets

Page 21 Our answer – a holistic Business Development program Find the right port locations for growing the industry Optimize installation technology and secure vessels Optimize wind turbine technology for larger projects Optimize project interfaces and service concepts

Page 22 Content Our Market Our Performance Our Strategy Our Technology – Example IntegralBlades® Our Team

Page 23 IntegralBlades ® - Motivation  Wind turbine blades are normally made by assembling blade shells and spars with glue joints  Glue joints represent weak spots as they are subject to cracking and may serve as entrance pathways for lightning strikes  Traditional blade production involves a potential risk of workers’ exposure to volatile organic compounds and other hazardous substances

Page 24 IntegralBlades ® - Innovation  The Siemens Integral Blade manufacturing process eliminates glue joints, delivering an integrated blade  The Integral Blade process delivers a blade with unrivaled strength and performance  The Integral Blade process uses unique glass consolidation and injection methods.  The Integral Blade process is protected by patents on key markets

Page 25 Content Our Market Our Performance Our Strategy Our Technology – Example SWT Our Team

Page 26 Introducing the new SWT A new 3.6 family member 107 m rotor introduced 2004, certified for IEC IA 120 m rotor planned for installation late 2009, to be certified for IEC IA/B New 120 rotor is based on “Quantum Blade” features Truncated “flatback” profiles at root New profiles at mid section Load shedding dynamics Other changes to turbine structure minimal turbine was dimensioned for larger rotor

Page vs : A strong boost to project viability

Page 28 Content Our Market Our Performance Our Strategy Our Technology – Example DD Technology Our Team

Page 29  A wind turbine is typically fitted with a speed-increasing gearbox  The gearbox is a sensitive and expensive component  A 3.6 MW gearbox has 13 gear wheels, 22 bearings  Elimination of the gearbox will reduce the number of moving parts and could lead to further improvement in reliability Direct Drive - Motivation

Page 30 The DD technology project has had four phases: 1.Selection of preferred generator technology  Design and manufacturing of prototype generators  Testing under laboratory conditions  Field testing in wind turbines  WTG1 July 2008  WTG2 March 2009 Direct Drive – Development since 1999

Page 31 Direct Drive – Prototype running

Page 32 Content Our Market Our Performance Our Strategy Our Technology Our Team

Page 33 We are hiring! CEO / CFO Business Development Risk Mgt., Finance & HSE Contract Management Offshore Service Offshore Technology Sales Project Execution We are offering 120 jobs within the next 15 months Employees Employees

Page 34 Backup

Page 35 Siemens Wind Power Market Approach  Long-term no. 1 in offshore wind  Dedicated to offshore, with an estimated 1/3 of production (MW) going to this market  Build on experience and learning curve  Strong focus on large projects with multiple-season installation  Stringent risk management in project selection and execution  Continuous R&D for maximum profitability  Selective steps into new markets Best controlled risk in growing the business