1. © Siemens AG 2014 All rights reserved.siemens.ca/answers Advanced Manufacturing Summit November 17, 2014 Siemens Canada

2. © Siemens AG 2014 All rights reserved. Page 2 The Fourth Industrial Revolution: Industry 4.0

3. © Siemens AG 2014 All rights reserved. Page 3 Raise efficiencyReduce time-to-marketIncrease flexibility Shorter innovation cycles Ever more complex products Larger data volumes Individualized mass production Volatile markets High productivity Energy and resource efficiency as decisive competition factors The Challenge: Manufacturing changes are needed faster than ever Industrie 4.0 will help manufacturing overcome the challenges it faces 123 Increase the ability to compete

4. © Siemens AG 2014 All rights reserved. Page 4 USA "Manufacturing Renaissance" Formation of a "National Network for Manufacturing Innovation" Use of national shale gas and oil deposits (fracking) Germany Maintain leading industrial position Sustainable investment in innovative strength High level of exports Industrie 4.0 as new guiding principle China Higher product quality by use of high-end technology Rising wages Need for quality driven demand for automation Energy efficiency legislation Japan Focus on growing exports Manufacturing industries generate about 20% of GDP Governmental activities to support export businesses Among the most innovative high-tech countries in the world Industry is once again considered the motor for growth and stability worldwide

5. © Siemens AG 2014 All rights reserved. Page 5 FRAMEWORK OF INDUSTRY 4.0 INDUSTRY 4.0 12 3 Digitization and Integration of Value Chains Digitization of Products and Service Offerings New Business Models Networking & Cooperation Innovation & Transformation Data & Analysis

6. © Siemens AG 2014 All rights reserved. Page 6 The future of industry Many teams are poised on the starting line Industrie 4.0 … STANDARDS ORGANISATION & PLANNING SHOPFLOOR LIFE-CYCLEHORIZONTAL INTEGRATION Internet of things & services VE R T I C A L I N T E G R A T I O N BIG DATA LEGAL IT SECURITY BUSINESS AREAS