Driving Innovation through Finance Presented by Paul PJ McElroy Manufacturing in America March 14-15, 2018

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1 Driving Innovation through Finance Presented by Paul PJ McElroy Manufacturing in America March 14-15, 2018

2 Before we start A Penny for Your Thoughts At the end of the session, share your feedback via MiA App - and get a chance to win tickets to the Detroit Tigers baseball game!

3 Driving Innovation through Finance Presented by Paul PJ McElroy Manufacturing in America March 14-15, 2018

4 Agenda 1 Who are Siemens Commercial Finance? 2 How and Where We Can Help You? 3 When to get us involved

5 SFS Commercial Finance: Your Complete Financing Solution Siemens Financial Services Commercial Finance (COF) is a division of SFS. We finance commercial projects whether a customer is looking to lease healthcare equipment, purchase building technology or finance the upgrade of a machine, we are your complete financing solution. We understand your business and are here to simplify the financing process and provide 100% funding.

6 CFOs view financing as key driver on road to successful digitalization

7 Commercial Finance from Siemens Financial Services Your trusted finance partner across the globe US UK Germany Finland/Norway/Sweden/Denmark Poland Russia SFS Commercial Finance More than 100 locations More than 1,700 employees 5 Regions spanning 14 countries 25 billion worth of total assets globally *Cooperations Spain France Turkey India China Circa 14,000 manufacturing customers globally * Depending on assets

8 Financing the Value Chain Capital Expenditures New & upgrading equipment Facility expansions Green-field projects Suppliers Siemens Industrial Divisions Providing financing expertise to increase your sales and help you accomplish your business goals. Value chain Capital Expenditures New & upgrading equipment Facility expansions Green-field projects Manufacturers OEMs Integrators Distributors Extended Payment Terms (EPT) Vendor Financing Leasing Loans We understand the needs of manufacturers

9 SFS Financing: Adding Customer Value Cash Conservation Financing the project allows customers control over existing capital which can be used meet changing market dynamics. Credit Preservation Financing provides customers with new source of credit, which leaves existing bank lines intact for other projects and business needs. Cash Flow Management The outright purchase of equipment may not be financially feasible. Financing enables customers to increase revenue without depleting cash reserves. Upgrade and Innovate The implementation of cutting-edge technology is vital for success in today s competitive market. Financing migrations and upgrades enable customers to innovate on a budget.

10 Tailored Financial Solutions Customer led solutions including: Flexible Payments Custom product-line programs Tailored Financing Solutions NEW: Extended Payment Terms Loans Capital Leases FMV Leases (Residual Value) Vendor Programs

11 Extended Payment Terms

12 The Basics: Extended Payment Terms (EPT) Transaction Sizes: We finance deals from $25,000 and up Payment Structure: Customer has up to 180 days to repay SFS Fine Print: SFS handles customer financing; Invoice is paid on due date Best Fit For: Integrators, Solutions Partners and OEM s with time sensitive project

13 Financing Process: Extended Payment Terms Step-By-Step Step 1 Financing Approval Step 2 Execute Program Agreement Step 3 Customer chooses PO or Invoice(s) Step 4 SFS funds your invoice on due date Step 5 Customer has 180 days to repay SFS

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16 Capital Expenditure Spend

17 The Basics: Capital Expenditures and Equipment Transaction Sizes: We finance deals from $50,000 and up Application Only (nonfinancial statement) underwriting <$500k *for machine tools and specific equipment Payment Structure: Payment terms from 12 months to 10+ years >$500k - Financial statements required

18 Financing for Siemens Customers: Operating Lease Operating Lease (FMV): lease allows customer to test or operate equipment with option to purchase or return equipment Customers may to lease and use equipment for 7 years or more. At conclusion customer has the option to purchase the equipment at the fair market value or return to Siemens. Depreciation benefits realized in the form of lower interest. We can even build in stated early buyout options throughout the lease. Financing allows a company to purchase several new pieces of equipment, let s say presses, without the significant capital investment

19 Financing for Siemens Customers Capital Lease (Loan): 100% financing up to 7-10 years for individual units or projects Example: A mid-market company with a limited budget planning CapEx spend. SFS offers financing with longer terms than local banks as well as no down payment. Allows them to make a decision now instead of delaying with minimal cash outlay Needs Based Solutions: SFS will work with Customers to provide competitive financing options when making investments in their plants and/or equipment. We look for opportunities to provide unique solutions based on our industry experience and financial know how Examples: CapEx to OpEx, Energy Performance Contracting

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22 Financing Process: CapEx and Equipment Financing Step-by-Step Step 1 Financing Quote Request Step 2 Preliminary Quote Released Step 3 Customer Acceptance of Quote Step 4 Financing Agreement Executed Step 5 Funding Provided

23 Vendor Programs

24 The Basics: Vendor Financing Programs Program: Offer Financing to Customers as Marketing Tool Ease of Use: Custom Tailor each program depending customer needs and equipment type Collaboration: Provide real-time feedback on customers purchasing decisions We Are Not a Bank: Independent Equipment Financing Firm

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26 SFS: Vendor Financing Programs Why SFS? End-To-End Solution: 100% financing (Yes, installation and labor costs too!) Expertise: we understand the demands of your business and project financing. We re here to help. Ease of Business: our goal is to help you close more business, quickly. Innovative Solutions: we ll tailor our solutions to meet your customers needs.

27 Don t Take Our Word For It

28 What customers are saying SFS has quickly proved their dedication to financing captive Siemens customers. Proper funding was critical in moving this deal forward. We would not have been able to do this deal so quickly and efficiently, if at all, without SFS. - Scott Macdonald, Siemens Industry Sales Director Put simply, SFS enables business. This deal wouldn t have moved forwards without SFS financing. By providing an attractive financial offering, in combination with our security technology, we have earned three additional installation deals and a 5-year contract with this customer. - Jack E. Rief, Siemens Industry, Senior Account Executive Without SFS we would have been forced to decline more than $1,000,000 in orders from our client. Knowledgeable people acting quickly to produce wins. - SFS Customer

29 We re dedicated to helping you win business! Thank you. For all inquiries regarding loans and leases, please contact PJ McElroy Phone: (610) Web: Follow us:

30 How did we do? Share your thoughts to win! Got 1 minute? Rate this seminar via MiA App for a chance to win Detroit Tigers tickets:

31 Seminar Slides After MiA, seminar slides will be available at:

32 Questions? Presenter Name Presenter Title Address Phone: