1. Unrestricted. © Siemens AG 2014. All rights reserved. Open Innovation 2.0 Dr. Walter Weigel VP External Cooperations Corporate Technology I Dublin, June 2014

2. Page 2Unrestricted. © Siemens AG 2014. All rights reserved. Siemens – Innovating the Electrical World Global trends Digital transformation Globalization Urbanization Demographic change Climate change Efficient Energy Application Power Transmission, Distribution & Smart Grid Power Generation Imaging & In-Vitro Diagnos- tics Today Mid term-2020 Electrification Market growth: ~2-3% Automation Digitalization Market growth: ~4-6% Market growth: ~7-9% Market development (illustrative) Decentralized demand of a growing and aging population Infrastructure invest- ment needs of urban agglomerations Global competition driving productivity & localization Networked world of complex and hetero- geneous systems Higher resource efficiency in an all- electric world

3. Page 3Unrestricted. © Siemens AG 2014. All rights reserved. Electrification: electricity consumption is increasing world-wide Production and consumption of electricity is increasing significantly world-wide The increase is most significant in developing countries Source: Siemens StudySource: OECD 1), IEA 2012 Information and communication technology (ICT) as well as consumer electronics are driving the consumption Source: IEA Increase more than 60% until 2030 Change in electricity production 2010-2035 The demand for electricity in developing countries leads to a world-wide increase of 70% until 2035 TWh According to the IEA the electricity consumption will double through the increase of ICT and consumer electronics from 800 (2011) to 1.700 TWh until 2030 Rest of WorldOECD 1) Europe OECD 1) Pacific OECD 1) North America heute 1) OECD: Organization for Economic Co-Operation and Development; IEA: International Energy Agency

4. Page 4Unrestricted. © Siemens AG 2014. All rights reserved. Automation is key to success Industrial, Data centers, etc. Utilities Commercial & Public Grid operators Integration of renewables such as PV, Wind and storage systems Mitigation of negative effects on power quality by mass renewable integration Enabling semi/full autonomous prosumers ranging from large campuses to buildings Better utilization of existing power grid infrastructure While power electronics is a key enabler, integration and automation make the difference Decentral generation e.g. Wind, Photovoltaics Grid storage e.g. batteries Controllable transformers Grid stabilization Voltage regulation Grid coupling Connect grids with different operating parameters Grid automation Transmission and distribution Micro grids Campus with island function (generation & consumption) Nano grids Intelligent grid in one building

5. Page 5Unrestricted. © Siemens AG 2014. All rights reserved. Digitalization: From data to business (Smart Data) Eco system partner Business Intelligence Business Innovation Value Generation 3 rd party component Provider Installed Products & Systems / Sensor data Supervised processes / Process data Examined human bod- ies & fluids / Images & diagnostic data Electricity Control & IT Control & comm. IT / Software Imaging & Bio Imaging Bio / chemical Data Business Innovation Value Generation Data- analytics Smart domain data Physics IT infrastructure tailored to business needs 3 rd party data, e.g., weather, customer- based,... Data Algorithms 3 rd party data access Smart data to business Business Intelligence Protected data and algorithms Partnering opportunities Power equipment Turbo Machinery Drives Data sources and processing

6. Page 6Unrestricted. © Siemens AG 2014. All rights reserved. Example: EU-project ICeWater Scope: Real-time monitoring of water infrastructure and smart metering Optimize water network operations to reduce energy requirement and water waste Address the ”water-energy“ nexus Detect and localize leaks in real-time Exploit internet of things paradigms to overcome shortcomings of traditional architectures Results, Deliverables, Impact: Input to roadmap development to Innovations for products Urban data research and development center Testing of technologies in two live pilots (Milan, Italy, Timisoara, Romania) Project Details: Duration:Oct. 12 – Sep. 15 Related Technologies: IT platforms for smart cities Internet of things and service architectures Energy efficient communication Smart apps, smart metering Network monitoring and Grid infrastructure: (additional to WI 2 M) Interoperability Services Data management Network management

7. Page 7Unrestricted. © Siemens AG 2014. All rights reserved. Drive innovation in an ecosystem of a smart city Project example: Seestadt Wien / Aspern  Research partnership between Siemens and the city of Vienna  Research area: Sustainable greenfield development of Seestadt Wien-Aspern (20,000 apartments, 20,000 work places)  Research topics: Data analytics of grid data Intelligent building management, optimization of building vs. grid mgmt. Sensor-supported energy distribution management End user information systems