Siemens PLM Software Status & Vision
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1 Siemens PLM Software Status & Vision Hans-Kurt Lübberstedt October 17 th, 2007
2 Agenda UGS extended The compelling PLM Vision Asia The Needs of an Economic Powerhouse What can contribute? Technology Portfolio Know-How Value Proposition Invitation for Partnership Page 2
3 Profile Division Independent within Siemens Automation and Drives HQ Plano, Texas Workforce of 7,750 Products Product Lifecycle Management Software & Services Market presence 47,000 customers 4.3 million seats of software Page 3
4 Evolution of Continued Investment in Full PLM May 2004 May 2007 Page 4
5 Delivering Profitable Growth all along 16 consecutive quarters of growth Our customers are TOP priority we never let a customer fail Page 5
6 Siemens is a ~$120 billion company with ~490,000 employees and growing $7.7 billion R&D in fiscal ,900 R&D employees 32,000 software engineers 175 R&D locations in over 30 countries Siemens R&D Statistics 10,410 inventions in ,000 active patents Our patent positions (2006): Germany: No. 1 Europe: No. 2 U.S.: No. 9 Page 6
7 One of 11 Independent Divisions within Siemens A&D Sales FY B Workforce FY 06 ~ 70,500 AS Industrial Automation Systems Franke Dr. Böckel (BA) MC Motion Control Systems Dr. Rathjen Höppner (BA) SE Systems Engineering Dr. Ludwig Dr. Staubitzer (BA) CD Low-Voltage Controls and Distribution Siegers Lopez (BA) MD Mechanical Drives Egelwisse Glasemann (BA) A&D Salesforce Germany: 9 Sales Regions Gierse Apitzsch Dr. Drexel Huber EA Electronics Assembly Systems Lauber Dr.Gruschwitz (BA) PL PLM Software Affuso Ludwig Bichara (BA) ET Electrical Installation Technology Schneider Kiehle (BA) SC Sensors and Communication Kumpfmüller Platsch (BA) International: 58 Regional Companies 24 Regional Representatives LD Large Drives Dr. Brandes Dr. Stock (BA) SD Standard Drives Helmrich Rathmann (BA) Mergers and Acquisitions Service & Customer Support Strategic Tasks top + Office Group Departments Advanced Technologies and Standards Business Development Controlling and Accounting Corporate Information Office Global Logistics Global Procurement Group Communication Human Resources Internal Audit Legal Support, Export Control and Customs Manufacturing, Quality Management BA = Business Administration Page 7
8 Management Team we never let a customer fail Tony Affuso Chairman & CEO - Board of Directors Anton Huber A&D Board Member Hannes Apitzsch A&D Board Member Heribert Stumpf Siemens Corp. Board Hans-Kurt Lübberstedt Asia-Pacific Tony Affuso Chairman & CEO Dr. Helmuth Ludwig President Peter Bichara EVP & CFO Dave Shook Americas Paul Vogel EMEA Ed Arlin Global GM and DCx Kerry Grimes Global Channel Sales John Graham EVP-Global Sales and Services Chuck Grindstaff EVP-Products Dave Shirk EVP-Marketing Dan Malliet SVP-HR K.R. Kwon Korea VP & GM Page 8 Mike Sayen VP-Strategy Karsten Newbury VP-Integration Craig Berry SVP-IT Rose Marie Glazer General Counsel
9 Accelerated Production Lifecycle Siemens has helped customers achieve concurrent processes in the physical world: Production automation Manufacturing execution Page 9
10 Accelerated Product Lifecycle has helped customers achieve concurrent processes in the virtual world: Product design Product validation Manufacturing planning Page 10
11 The Next Big Step: Unifying Product & Production The Siemens strategy: Merge virtual with physical worlds Establish digital platform to unify disciplines The plan: acquire Siemens PLM Software, the world leader in product lifecycle management Page 11
12 Unifying Product & Production for Greater Speed with Confidence SPEED (First to Market) Achieve concurrent disciplines by integrating product & production Digitally analyze products & production for agile processes Re-use assets: knowledge, engineering, parts, manufacturing plans & resources CONFIDENCE (Right to Market) Simulate & validate for predictable quality, cost and compliance Close the loop between virtual & physical data for continuous improvement Manage change predictably to ensure high quality throughout the lifecycle Page 12
13 Don t Take Our Word for It Joining Forces with Siemens The Siemens- deal is good news for manufacturing customers particularly those facing market pressures to accelerate their rate of product innovation. Spawns a PLM Software Innovation Network" Navi Radjou and Jessica Harrington Page Siemens Siemens Product Product Lifecycle Management Software Inc. Inc. All All rights reserved
14 Agenda UGS extended The compelling PLM Vision Asia The Needs of an Economic Powerhouse What can contribute? Technology Portfolio Know-How Value Proposition Invitation for Partnership Page 14
15 Projected GDP Goldman Sachs Economic Research Global Economic Paper Issue No. 134 December 1 st, ,000 50,000 China India Japan Korea UK US 40,000 US$bn 30,000 20,000 10,000 0 Page ' Siemens Product 2030Lifecycle 2035 Management 2040 Software Inc All rights reserved 2050
16 GDP, Current Prices KOREA International Monetary Fund, World Economic Outlook Database, April ,200 40% 1, % % % 0 (200) (400) % -10% (600) -20% (800) (1,000) GDP $B GDP Growth -30% (1,200) Page 16-40%
17 Engineering Graduates - Korea 200, ,000 To make all these Engineers productive: Best in Class Tools are required 100,000 50,000 0 Page 17 Japan Korea US Europe Sources: US, Europe - All India Council for Technical Education Korea - Ministry of Education & Human Resources Development, 2006 Japan - Ministry of Education & Sciences of Japan
18 Agenda UGS extended The compelling PLM Vision Asia The Needs of an Economic Powerhouse What can contribute? Technology Portfolio Know-How Value Proposition Invitation for Partnership Page 18
19 Solutions Delivering Value Across the Entire Product Lifecycle Transform product development to accelerate innovation Optimize manufacturing for greater confidence Evolve to 3D with affordable CAD Page 19 Leverage PLM in the mid-market Connect people & processes with knowledge Deploy standardized solutions with open software tools
20 Teamcenter 2007 industry's broadest and most integrated suite of applications Systems Eng. & Requirements Mgmt Providing a single source of product and process knowledge Program & Project Management Engineering Process Management Enterprise Knowledge Management Maintenance, Repair & Overhaul Lifecycle Visualization Community Collaboration Reporting and Analytics Compliance Management Supplier Relationship Management Page 20
21 Don t Take Our Word for It The Value of Teamcenter 2007 never before could any vendor provide a concrete, executable vision of a closed-loop optimization for design for manufacturing process Teamcenter 2007 redefines the PLM competition (it) is an integrated PLM software, and it is the first one. PLM Technology Race Heats Up: What Lies Ahead for? Vasco Drecun Page Siemens Siemens Product Product Lifecycle Management Software Inc. Inc. All All rights reserved
22 Don t Take Our Word for It Dedication to Customer Success has a strong reputation in the market of being trustworthy and always delivering on its promises. Page Siemens Siemens Product Product Lifecycle Management Software Inc. Inc. All All rights reserved
23 Global Services for End-to-end PLM Consulting Experienced PLM consulting team works with you to maximize business value Understand Business Priorities Assess Operational Execution Develop Solution Roadmap Quantify Business Value Deliver Solution Validate Solution Benefits Page 23
24 Global Services PLM Solution Delivery & Support Proven & streamlined delivery method with: Clear objectives Defined planning process Professional project management Defined communication & escalation paths Agreed success criteria Delivering key benefits: Faster time to value Minimum project risk Real business impact People Process Technology Management & Technical Training Process-specific User Training Organizational & Process Change Management Implementation Services Expert Services Maintenance & Support Page 24
25 It s All About Achieving Profitable Growth and Out-innovating Your Competition A company can t outgrow its competitors unless it can out-innovate them. Harvard Business Review Page Siemens Siemens Product Product Lifecycle Management Software Inc. Inc. All All rights reserved
26 Today s Business Requirements Page 26
27 Siemens UGS focused on our customers biggest business challenges: Challenges: Get to market faster Optimize and reuse resources Achieve compliance Go global Absorb M&A Out-innovate competitors sustain profitable growth Two keys to profitable growth: Speed be first to market Confidence be right to market Page 27
28 Future Direction Gartner PLM Magic Quadrant, Q Siemens A&D strength and delivery Siemens A&D UGS The Ideal Position Siemens A&D industrial vision Page 28
29 Agenda UGS extended The compelling PLM Vision Asia The Needs of an Economic Powerhouse What can contribute? Technology Portfolio Know-How Value Proposition Invitation for Partnership Page 29
30 Partnership to generate Competitive Excellence Innovation is the key to your competitiveness in the global market place To out-innovate your competitors you need a state of the art innovation process Siemens PLM can help you establish and maintain a leading processes for innovation with: The most complete technology portfolio in the industry The Know How from building 1000 s of solutions for leading corporations around the globe A far reaching PLM vision that will secure the future for your business We invite you to engage with us to increase the value of your business and to win a bright future Page 30
31 Thank you
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