Digitalization. changes everything. Siemens Digital Enterprise Ljubljana September 15 th 2017

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1 Digitalization changes everything Siemens Digital Enterprise Ljubljana September 15 th 2017 Source:

2 A lot can happen in a year >50% of the world s data was created last year but less than 0.5% was analyzed or used Restricted Siemens AG 2017

3 Digitalization is the next level to yield productivity within Process Industries Computing power Connectivity Sensors Cloud computing Data analysis Digitalization Automation Next level of productivity Siemens as experienced partner for Automation and Electrification Electrification Pioneer for Digitalization in industry Restricted Siemens AG 2017 Time

4 The potential of Digitalization

5 Generating customer benefits is our key priority Industry trends Efficiency Flexibility Quality Time-to-market Resource and energy efficiency Demanded product/quantity Individualized mass production Volatile markets Closed-loop quality Traceability Fast innovation More complex products Lifecycle Management Security HSSE Health & Safety Environment Regulations/Standard Restricted Siemens AG 2017

6 Digitalization will have a significant impact on many areas of all industries

7 How will digitalization affect your business, and where can the biggest impact be expected?

8 There are four main topics in which digitalization will change the industry

9 Your Products

10 Your Business Model

11 Your Customer in Focus

12 Your Business Processes

13 To Save Costs To Earn More Profit

14 Where are we today?

15 Restricted Siemens AG

16 Restricted Siemens AG

17 Companies with stronger digital intensity derive more revenue from their physical assets Companies with stronger transformation management intensity are more profitable Companies with stronger transformation management intensity achieve higher market valuations REVENUE DEVELOPMENT -10 Starters Conservatives Look alike Digital Champion PROFIT DEVELOPMENT MARKET DEVELOPMENT Starters Conservatives Look alike Digital Champion Starters Conservatives Look alike Digital Champion Based on: How_Digital_Leaders_Outperform_their_Peers_in_Every_Industry.pdf

18 Siemens Digital Enterprise Offering

19 Digital Enterprise is our portfolio of solutions for the digital transformation in both discrete industry and process industry Digital Enterprise Process Industries Discrete Industries Product design Process and plant design Engineering Operation Services Product design Production planning Production engineering Production execution Services Industrial Software and Automation for process industries Industrial Communication Industrial Security Industrial Services Industrial Software and Automation for discrete industries Digital Enterprise Suite Digitalization of the field level Restricted Siemens AG 2017

20 3 Levels of Digitalization in the Process Industry Integrated Engineering Engineering and livecycle of your plant Integrated Operation Day to day operation: vertical and horizontal integration of value streams Restricted Siemens AG 2017 Automated Production Processes Online Process Analytics

21 Digital Enterprise Portfolio for the Process Industry Integrated Engineering, Maintenance & Service Advanced Automation Process Optimization Integrated Operation 4 Energy Management 5 Industrial Communication 6 Restricted Siemens AG 2017 Cloud & Fog Applications

22 Jour Digitalization Journey Strategic Allinement Meeting (2-3 hours) Company Tour along the horizontal value chain Stategic discussion with management Maturity Check (~1/2 day) Understanding your needs, challenges & pain points Enhance intensive discussion among different customer s departments Assess digital maturity of the value chain Deliverable Digitalization Consulting (1~2 days) Assessing the challenges along the value chain Link customers challenges and digitalization initiatives Assess customer value & business impact Prioritize initiatives Define general work streams Digital List of main pain points & challenges Digital Index along the value chain Deliverable Work streams & global timeline for Digital transformation Transformation Implementation Business ideas and initiatives Projects Restricted Siemens AG 2017

23 Digitalization in the Process Industry Herbert Vitzthum Digitalization in the Process Industry The countries where you can find me Albania Georgia Romania Armenia Hungary Serbia Austria Israel Slovakia Azerbaijan Kosovo Slovenia Bosnia and Herzogovina Macedonia Ukraine Bulgaria Moldova Croatia Montenegro Restricted Siemens AG 2017

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