Unlocking the potential of digital transformation Dr. Roland Busch, CTO and Member of the Managing Board of Siemens AG
We ve scaled up our digital offerings December 2016 Increase R&D investment to over $6 bn Create new digital offerings, roll-out of MindSphere Achieve double-digit annual growth in digital businesses December 2017 $6.3 bn R&D investment in Electrification, Automation, and Digitalization More than 250 digital offerings (digital services and industrial applications), 1 million connected assets (+25%) Software and digital services businesses grew by 20% Page 2 The financial statements of the Siemens Group are reported in Euro. For this presentation selected numbers have been translated to US-$ with the spot rate as of Feb. 28, 2018 ( 1=$1.2214) Twitter : @BuschRo
Expanding our digital footprint by increasing our spending for research and development ~+40% $1.5 bn R&D in digital business in FY 2017 5.0 6.3 ~6.9 20% R&D intensity for digital business Currently 24,500 software engineers globally FY2014 FY2017 FY2018e *in billions of US dollars US R&D investment 2017: +16% to $1.3 bn Page 3 The financial statements of the Siemens Group are reported in Euro. For this presentation selected numbers have been translated to US-$ with the spot rate as of Feb. 28, 2018 ( 1=$1.2214) Twitter : @BuschRo
Atellica: ultrafast and flexible diagnostics platform Page 4
Mireo: innovative platform for premiumclass mass transit Page 5
1,100 kv: recordbreaking HVDC Page 6
3D printing of gas turbine blades Restricted Unrestricted Siemens AG AG 2017 2018 Page 7 Siemens Innovation Day 2017
Innovation with a clear focus Siemens Company Core Technologies Additive Manufacturing Autonomous Robotics Blockchain Applications Connected (e)mobility Connectivity and Edge Devices Cybersecurity Data Analytics, Artificial Intelligence Distributed Energy Systems Energy Storage Future of Automation Materials Power Electronics Simulation and Digital Twin Software Systems and Processes Page 8
Improving innovation speed and capital allocation with Siemens Company Core Technologies Full innovation cycle: university collaboration applied research advanced applications and prototyping Covering technological as well as business model innovations Output-driven and market-oriented Tapping outside innovations with partners/ecosystem and next47 $600 million focused investments Page 9 The financial statements of the Siemens Group are reported in Euro. For this presentation selected numbers have been translated to US-$ with the spot rate as of Feb. 28, 2018 ( 1=$1.2214)
Our innovation and digitalization agenda Speed and scale Page 10
Digitalization is a key driver of innovation and growth Digitalization Automation Revenue FY 2017 Siemens software Enhanced automation +20% nominal 1) /+11% excl. Mentor Digital services MindSphere ~$4.9 bn ~$23 bn Classic services ~$1.5 bn ~$21 bn Market growth CAGR FY 18 22 ~+8% ~+3% Electrification Enhanced electrification ~$53 bn +1-3% Revenue digital businesses: $6.4 bn 1) Total growth: +20% (+20% in software, +20% in digital services) Growth excluding Mentor Graphics acquisition: +11% (+9% in software, +20% in digital services) Page 11 The financial statements of the Siemens Group are reported in Euro. For this presentation selected numbers have been translated to US-$ with the spot rate as of Feb. 28, 2018 ( 1=$1.2214) Twitter : @BuschRo
Our offering differentiates us clearly from our competitors Deep domain know-how in a broad range of markets and industries Strong installed base/connected fleet Powerful ecosystem Unmatched digital portfolio: MindSphere, Software, Services, Security Numerous Siemens internal use cases as proof points Page 12
Recent acquisitions and partnerships Siemens is among the top 10 of the biggest software companies worldwide * We ve invested more than US$10 billion in U.S. software acquisitions since 2007 *minority equity investment Page 13 Twitter : @BuschRo
Siemens ecosystem Customers Application developers Integrators Technology & Infrastructure partners Page 14
Closed loop innovation the digital twin improves development, production and operation Digital Product Twin Digital Production Twin Digital Performance Twin powered by MindSphere Digital System Twin Digital Construction Twin Digital Performance Twin Page 15
MindSphere, open cloudbased IoT operating system Connectivity Strong partner ecosystem Closed-loop innovation Advanced analytics and machine learning Powerful industrial applications and digital services Scaling up with AWS Page 16
Developments of our digital offerings over the last 12 months +25% connected assets: 1 million devices and systems doubled number of customers: plus 2,900 4x increase of digital offerings: more than 250 Page 17
The digitalization of industries requires a different approach How to turn data into value? How to create digital offerings? Page 18
How to turn data into value? MindSphere Application Centers for Siemens digital offerings Domain know-how/vertical expertise Co-location MindSphere and software portfolio Data analytics capabilities Customer IoT integration competence Co-creation Digital offerings Industrial apps Digitally enhanced services Integrated digital solutions Page 19 Twitter : @BuschRo
MindSphere Application Centers for Siemens digital offerings 20 MindSphere Application Centers 50 Locations in 17 countries across the globe ~900 software developers, data specialists and engineers Speed and scale Page 20
Rail Mobility & Infrastructure Oil & Gas Power Utilities Distribution System Operators Healthcare Providers Auto, Electronics Cities Chemical, Pharma Industry Services Minerals, Cement, Fiber Mining Battery Technology Road Mobility & Infrastructure Water & Waste Water Airports Pumps, Fans, Compressors Buildings Distributed Energy Systems Machine Tool Builders Food & Beverage Page 21 Twitter : @BuschRo
MindSphere Application Centers Locations around the globe Berkeley Foster City Austin Pittsburgh Alpharetta Atlanta Orlando Oslo Frankfurt Renningen Karlsruhe Newcastle upon Tyne Dublin Nottingham London Seville Sao Paulo Berlin Bad Neustadt Erlangen Nuremberg Munich Moscow Vienna Budapest Istanbul Abu Dhabi Riyadh Dubai Singapore Gurgaon Noida Pune Hong Kong Shanghai Perth Page 22 Twitter : @BuschRo
MindSphere Application Centers in the United States Berkeley Foster City Austin Pittsburgh Alpharetta Atlanta Orlando Alpharetta: Process Industries Atlanta: Rail Mobility & Infrastructure Austin: Buildings and Distributed Energy Systems Berkeley and Orlando: Utilities and Oil & Gas Foster City: Municipalities & Distribution System Operators Pittsburgh: Pumps, Fans, Compressors The U.S. has the largest MindSphere Application Center footprint outside of Germany Page 23 Twitter : @BuschRo
MindSphere Application Centers Creating value for customers Jacksonville Grid infrastructure $1 million savings per year with advanced metering Amtrak Rolling stock 33% fewer delays thanks to predictive maintenance Large US power station Drive train analytics < 75 minutes instead of 6-8 hours to re-commission drives Page 24 Twitter : @BuschRo
Siemens is driving digitalization on all levels Clear and focused R&D capital allocation to drive differentiation Leverage domain knowhow, digital portfolio and customer relationship Growing digital businesses by more than 10 percent Speed and scale Page 25 Twitter : @BuschRo