1. Siemens Energy Service Sector overview
John McVey
For internal use only / © Siemens AG All rights reserved.

2. Health and Safety
“Our zero harm philosophy is very clear. It has to be something in the hearts and minds of all our employees that safety comes first - so no matter how big the contract is, how important the customer, or how close the deadline is, we will not compromise and we will not put the health and safety of our people at risk.”
Matthew Chinn
Managing Director, Energy Sector UK & North West Europe
Siemens

3. Infrastructure & Cities Energy Healthcare
Siemens UK Structure
Industry
Infrastructure & Cities
Energy
Healthcare
Divisions
Drive Technologies
Industry Automation
Service
Divisions
Mobility
Lighting (OSRAM)
Power Distribution, Smart Grid Applications
Building Technologies
Divisions
Fossil Power Generation
Renewable Energy
Power Transmission
Oil & Gas
Energy Service
Divisions
Imaging & Therapy Systems
Clinical Products
Diagnostics
Customer Solutions

4. Fossil Power Generation
Siemens Energy Sector
Energy products and solutions – in 5 Divisions
Fossil Power Generation
Renewable Energy
Energy Service
Power
Transmission
Oil & Gas

5. Energy Conversion Chain -

6. What are we here to do?
Page 6

7. What does the market look like?
ESSR ES
ESSF
Market
Skills
shortage
Conversions
Biomass
UK Round 3
CCGT New Build
Electricity Market Reform
Local
manufacturing
Onshore
growth
Ageing Fleets
Renewables RoadMap
Nuclear
delays
New technologies
New Market Entrants
LCPD
Customers
Competition

8. What differentiates us from our competitors?
“One stop shop”
Continuing investment within the Service Facility
Dedicated Training Centre
Excellent safety record
Blend of experience and upcoming talent
Innovation with a global investment of €4 billion on R&D
Drax upgrades
Input into new wind turbine product design

9. Environmental Targets Stakeholder Confidence
3 Main issues driving UK Energy Policy and market reform over the next 10 years
Security of Supply
Environmental Targets
Stakeholder Confidence
¼ Existing generating capacity due to close in next 10 years
Reserve margins need to increase due to intermittent supplies
Demand could double
15% of energy from Renewables by 2020
34% reduction in carbon emissions by 2020
Further investment to meet LCPD NOx limits
£110Bn investment required by 2020
Long-term investor confidence through ‘grandfathering’
Boost market competition
Least cost to consumer

10. UK Round 3 – Wind Proposed Development. offshore-renewable-energy-uk
UK Round 3 – Wind Proposed Development. offshore-renewable-energy-uk.pdf
… which translates into ~2.000 technicians to be hired…
2018
2016
2022
1.973
2020
1.655
885
294
Impact on
Service5)
Assumed efficiency factor for NG6 (13-16 MW / technician)3
… and ~100 vessels to be procured
for R3 sites 60 20
1) 100 k£ / MW over 20 years 2) Electricity Market Reform, Secretary of State for Energy and Climate Change Chris Huhne
3) Currently 8 MW / technician on nearshore site 4) Stephen Wilson, director of wind and marine at Narec 5) Siemens gain 40-50% market share 10 6
CTV
Flotel
SOV
Jack up

11. What about the longer term vision?
Total Market Development & Service Market
ESSR
€ market size
Installed MW
1.500
23.254
25.000
20.000
Strong growth over next 5 years
Onshore - 14% p.a.
Offshore - 35% p.a.
Government aim to attract new investors /developers
Increasing competitive OEM market
ESSR
1.000
969
795
15.000
645
515
10.000
500
7.275
424
327
251
5.000
2010
2011
2012
2013
2014
2015
2016
On-shore
Off-shore
Market size MW
ESSF
€ market size
Installed MW
1.500
85.700
90.000
78.500
80.000
ESSF
1.000
70.000
Coal plant closing due to LCPD
New build mix of CCGT & biomass
Potential conversions of old plant
60.000
681
625
608
615
615
654
50.000
581
40.000
500
30.000
20.000
10.000
2010
2011
2012
2013
2014
2015
2016
TurboCare
Siemens
Parsons

12. Newcastle Energy Service Training Centre
Replication of “real-life” field conditions and equipment
Steam turbine, Gas turbine and Generator technology
2.3 & 3.6MW Variable Speed Nacelles
Two training towers (10m and 16m)
15 state of the art classrooms
Both technical and safety training courses
Accredited graduate and apprentice training programmes
Target to become Centre Of Excellence for direct drive wind technology
“Supporting the business and our customers”

13. Thank you