© Siemens AG All rights reserved. Munich, January 21, 2013 The Future of Manufacturing Manufacturing redefines itself. Prof. Dr. Siegfried Russwurm Member of the Managing Board of Siemens AG – CEO Industry Sector

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 2 "Manifesto" video

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 3 Industry worldwide: Facts and figures Share of GDP: 16% 1) Growth, gross value added p.a. 2) : 2.7% (advanced economies) 7.4% (developing economies) Share of exports: 70% 1) Share of research & development: 77% 3) One new job in industry creates two more jobs in other segments 1)2010 2) from 2000 to ) 2008 Source: IHS Global Insight, Mc Kinsey Global Institute analysis

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 4 Our markets are changing … The merger of real and virtual production – interlinking automation and drive technology with industry software shortens time to market Reduce time to market Enhance flexibility Need for higher flexibility drives increasing importance of industrial IT and industry software. Increase efficiency Energy and resource efficiency are decisive cost factors Growing importance of manufacturing industries in all economies … and we are well prepared to make our customers more competitive

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 5 The holistic view of the entire product development and production process … 1 Product design 2 Production planning 3 Production engineering 4 Production execution 5 Services Intelligent networking Use of most efficient technologies … increases productivity and efficiency in the individual process steps

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 6 1. Much faster development of product designs through the use of industry software  Virtual development, planning and optimization with PLM software  Dramatic reduction of development times with virtual prototypes  Resource efficiency through virtual analysis of alternative designs

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 7 PLM software accelerates design modifications CAx chain (CAD/CAM/CAE) via NX for faster prototyping Teamcenter for collaboration in a shared database Virtual simulation, tests and optimization of components Red Bull Racing Development and production in just a few hours

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 8 PLM software accelerates design modifications Teamcenter NX CAE & NX CAM NX CAD Complete 3D digital product design Integrated simulation, analysis and manufacturing Full lifecycle data management Mars Rover

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page Simulated production planning with industry software speeds up time to market  Integration of PLM software and automation technology  Complete simulation and optimization of production  Savings in terms of time, resources and energy costs  Up to 50% faster time to market 2

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 10 "Virtual Machines" increase productivity by simulating the production process  Digital "twin"  Simulated machining of a workpiece  Evaluation of production times 10% increase in productivity in running operations Up to 80% time savings in setting up the real machine < 1% realtime deviation in Virtual Machine compared to the original INDEX

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page  Seamless communications between the individual systems  Integrated, uniform access to all automation tasks  Optimized operational, machine and process workflows 3. Cost savings through optimized workflows in production engineering 3 5

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 12 TIA Portal: One engineering tool for the whole range of automation tasks SINAMICS  G120 (F) *NEW SINUMERIK SIMOTION Next expansion stages SIMATIC HMI  Basic Panels  Comfort Panels  WinCC Runtime SIMATIC Controller  S7-300/400 (F)  WinAC (F)  S  S (F) *NEW SIMATIC NET  Profibus  Profinet  IWLAN Drive TechnologiesIndustry Automation Standardized operating concept Automatic data consistency Intuitive – efficient – future-proof TIA Portal

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page More efficient production through energy- and resource-saving components and solutions  Increased plant productivity and efficiency thanks to integrated automation solution, efficient motors, gears and converters  Maximum production performance and response  Intelligent data linking for transparent control of production processes 4

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 14 Innovative drive systems save up to 70% on energy Drive technology accounts for about two- thirds of industrial energy consumption Interworking of all components Efficiency in the drive train starts with the motor Up to 70% lower energy consumption with variable-speed drive systems

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 15 Greater transparency in production The Dashboard provides graphical display of energy amounts and costs in clear tabular form Energy controlling Monitoring and reporting Emission monitoring Energy billing Energy/raw material accounting Link to external systems Energy reporting Energy purchas- ing Forecasts Energy roadmap Energy planning & acquisition

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 16 Efficient and flexible production processes with integrated automation and drive solutions Production around the clock, 365 days a year Visualization and control of 3,000 measuring points  Integrated, plant-wide automation solution  Modern energy management  Innovative heat recovery system f | glass With heat recovery, the company produces 60% of the power it needs for glass production About 50% in energy savings with frequency-regulated drives

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page Services through the entire lifecycle build on data from previous process steps  Product-, system- and application-related services through the entire lifecycle based on vertical-market and process know-how  Less downtime and use of resources  Higher productivity and efficiency combined with lower overall costs 5

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 18 Projection (2006): Mechanical and control design will converge in the next 10 years PLM software vendors (UGS, Dassault Systèmes, PTC) PLC software and hardware vendors (Siemens, Rockwell, Schneider) Long term >10 years PLC Operation Integrated Mechanical and Automation & Control Design PLC code converter Mid- term Mechanical DesignOperation PLC Control Design Automation Designer Today (2006) PLC Mechanical Design Automation and Control Design Operation UGS acqui- sition Today, Siemens PLM Software has over 71,000 customers and about seven million licensed users

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 19 Targeted acquisitions in the growth market for industrial IT and industry software Discrete manu- facturing Process industry Pharma- ceutical and biotech industries Production of composite materials Across vertical market lines Discrete manu- facturing, automo- tive Various industries Sept Jan Nov Feb Sept Oct Nov automotive, aerospace, and other industries 2007 PLM software Integrated plant mgmt. MES software CAD design software Industrial communi- cations and network solutions Industrial quality and pro- duction mgmt. Product cost man- agement software Computer- aided motion software Test and mecha- tronic simulation software Date of announcement

Industry Sector © Siemens AG All rights reserved. January 21, 2013Siegfried Russwurm Page 20 Innovative software systems open up new perspectives for production technology TomorrowTodayYesterdayThe future Optimization of the entire production process with innovative software systems Communication- aided automation Local automation technology Self-optimization of cyber-physical systems, based on analysis of virtual models of options

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