Optimized operation due to digital innovations in power plants. Ute Messmer I Head of Digital Technology Center

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1 Optimized operation due to digital innovations in power plants Ute Messmer I Head of Digital Technology Center Unrestricted Siemens AG Österreich 2018 siemens.at/future-of-energy

2 From centralized power generation Unrestricted Siemens AG Österreich All rights reserved. Page 2 July 28, June , 2018

3 to decentralized & fluctuating power generation Unrestricted Siemens AG Österreich All rights reserved. Page 3 July 28, June , 2018

4 Siemens: Leading energy digitalization 800k major assets connected 4.3bn digital revenue 17,500 software developers 2007 first major digital M&A Unrestricted Siemens AG Österreich All rights reserved. Page 4 July 28, June , 2018

5 Siemens Digital Services connecting physical and virtual world Physical world Siemens installed base 300,000 connected systems Virtual world Insights from an average of more than 17 TB operations data per month Autonomous fault recovery CAx Asset management MES Analytics Imaging software Fleet management Smart grids e-services Digital Plant Image-guided maintenance Edge Services Collaboration in the cloud PLM Embedded software Efficient plants and fleets Decision support Neural networks Unrestricted Siemens AG Österreich All rights reserved. Page 5 July 28, June , 2018

6 Digitalization Enables energy transition Traditional energy value chain Utilities focus on own assets and operation System view based on business model "generate, distribute, and sell energy" Value in copper Customized, utility-specific grid-size solutions Manual operation Central generation, generation follows load Unrestricted Siemens AG Österreich All rights reserved. Page 6 June 28, Digitalization enables transition New distributed energy world Focus on Alliant assets, needs and requirements Local view, new Alliant-centric business models Value in SW and fast innovation Off-the-shelf, scalable solutions for many distributed sites Automated, highly efficient operation Distributed and renewable generation, flexible energy systems e.g. demand response

7 New business models in the internet age are disrupting markets From book store to e-book From Yellow Pages to marketplace From record store to streaming From taxi to ride sharing Unrestricted Siemens AG Österreich All rights reserved. Page 7 June 28, 2018

8 Technological forces are transforming industry Changing the way products come to life Changing the way products are realized Changing the way products evolve GENERATIVE DESIGN INTELLIGENT MODELS INTELLIGENT AUTOMATION ADDITIVE MANUFACTURING CLOUD ECOSYSTEMS KNOWLEDGE AUTOMATION SYSTEMS OF SYSTEMS ADVANCED ROBOTICS BIG DATA ANALYTICS Unrestricted Siemens AG Österreich All rights reserved. Page 8 July 28, June , 2018

9 Digital Solutions build on data and provide analysis, recommendations or problem solving Data Analyse Advise Act Transparency: Visualization, aggregation, analytics KPIs, dashboards, trends Support in decision-making: Recommendations on action Plant improvement: Problem solving Expertise regarding content Expertise regarding context Expertise regarding implementation Unrestricted Siemens AG Österreich All rights reserved. Page 9 July 28, June , 2018

10 The comprehensive Digital Power Plant The real potential of digitalization is leveraged through the combination of digital twins of decisive production areas with the entire power plant. Unrestricted Siemens AG Österreich All rights reserved. Page 10 June 28, 2018

11 New technologies provide innovations for optimized plant operation Innovations Value-based results Asset Performance Management IoT sensors enable advanced error detection Data analytics from historical and current data are used to avoid shutdowns Intelligent savings in operation and maintenance Fleet monitoring with augmented visualization Additional information is displayed in field of vision 3-dimensional models for visualization Intuitive monitoring for optimized operation of the entire fleet Autonomous drone inspection Autonomous data collection and algorithms for image recognition Inspections for hard to reach components to simplify maintenance Unrestricted Siemens AG Österreich All rights reserved. Page 11 June 28, 2018

12 Strengths combination for maximum customer benefit Process engineering competence Automation competence Digitalization 600 GW installed, 10 GW operated by Siemens 2,500 systems based on proven Siemens technology More than 800,000 connected products in the field The only I&C supplier with comprehensive knowledge Project Management SPPA-T3000 The benchmark for I&C Benchmark in project management MindSphere - The cloud-based, open IoT Operating System No other IoT provider can connect you to the complete Digital Twin like Siemens Unrestricted Siemens AG Österreich All rights reserved. Page 12 June 28, 2018

13 DISCLAIMER This document contains forward-looking statements and information - that is, statements related to future, not past, events. These statements may be identified either orally or in writing by words as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "will" or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens' control, affect its operations, performance, business strategy and results and cause the actual results, performance or achievements of Siemens worldwide to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products or technologies by other companies, lack of acceptance of new products or services by customers targeted by Siemens worldwide, changes in business strategy and various other factors. More detailed information about certain of these factors is contained in Siemens' filings with the SEC, which are available on the Siemens website, and on the SEC's website, Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forwardlooking statement as anticipated, believed, estimated, expected, intended, planned or projected. Siemens does not intend or assume any obligation to update or revise these forwardlooking statements in light of developments which differ from those anticipated. Trademarks mentioned in this document are the property of Siemens AG, its affiliates or their respective owners. Any detail provided in this presentation is for information purposes only and subject to variation upon Siemens' decision. The content in this presentation is being provided for discussion purposes only and changes are possible. Siemens makes no representations or warranty of any kind regarding the content and/ or sufficiency of the information in this presentation. This presentation is not intended to be a binding offer to sell the products, performance and/ or services described hereunder and therefore no purchase order will be accepted based on this presentation Any performance and/ or price information and/or estimation given in this presentation is indicative and subject to variation, upon Siemens' decision Unrestricted Siemens AG Österreich All rights reserved. Page 13 June 28, 2018

14 Contact Ute Messmer Head of Digital Technology Center PS CD DI DTC Siemensallee Karlsruhe Phone: Mobile: siemens.at/future-of-energy Unrestricted Siemens AG Österreich All rights reserved. Page 14 June 28, 2018