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Siemens Communications Strategy

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1 Siemens Communications Strategy
July 2015 Siemens Communications Strategy

2 Our mission is based on Vision 2020 and brought to life through defined communications
The Siemens company concept … … inspires a funda-mental narrative … … that is brought to life through defined communications Our path: mission, goals, stages, positioning Culture Strategy We make real what matters Communications goals Topics Tactics Vision 2020 Mission Communications

3 Vision 2020 Three topics paving the way to a successful future
 our path A clear mission Our mission defines ourselves, our aspiration and is the expression of a strong brand. Positioning, Stages, Goals  our culture A lived ownership culture One engine of sustainable business is our ownership culture, in which every employee takes personal responsibility for our company’s success. “Always act as if it were your own company“  our strategy A consistent strategy Vision 2020 defines a concept that will enable us to consistently occupy attractive growth fields, sustainably strengthen our core business and outpace our competitors in efficiency and performance.

4 Mission As an expression of a strong brand, the mission formulates our aspiration

5 The Siemens mission describes what we do how – and why
Why we exist Grounded in reality, we are inspired by the desire to shape the future – in cooperation with our partners. Leveraging our passion for engineering, we make real what matters and improve the lives of people today and in the generations to come. Customers all around the world trust us and count on our know-how and our strength in execution to make them more competitive. What we do We empower our employees and our customers to set benchmarks – with our power of innovation, our leading technologies, our global presence and, last but not least, our financial solidity. We generate value by transforming the value chain of electrification, reaching across both the digital and physical worlds. How we succeed Our knowledge is the basis of our performance. We partner with our customers, leveraging sustainable business practices. With determination and ingenuity, we deliver engineering excellence, taking personal ownership until we jointly succeed. We make real what matters By setting the benchmark in the way we electrify, automate, and digitalize the world around us. Ingenuity drives us and what we create is yours. Together, we deliver. Birgit

6 Communications Goals Our communications goals support Vision 2020:
Position Siemens as "The company that sets the benchmark and makes real what matters“ by demonstrating how Siemens is the partner of choice through customer references and with communications that are closely aligned to business needs. Increase the perception of Siemens’ digitalization strengths by emphasizing our digitalization strengths in our core topics Sustainable Energy, Future of Manufacturing and Intelligent Infrastructure, and by applying the ‘Digital Layer’ where suitable. Foster an ownership culture and promote Siemens as an employer of choice by inspiring employees to act as if this is their own company and by enhancing Siemens’ reputation as an attractive place to work.

7 FY 2015: Moving on from answers with brand morphing and preparing the organization internally
4_84 Internal: Prepare the organization and seeding Global roll-out with new brand program and creative expression platform Date TBD Mission forms basis for all communications Build internal understanding with references and proof point stories External: "Step 1" of morphing process moving on from answers Answers will run its course in FY 2015 after which it will no longer be used New productions should incorporate the digital layer to highlight E-A-D New productions should not use "siemens.com/answers" rather just "siemens.com" First movers Corporate (annual report, shareholders meeting, …) Global hot spots (Gartner Symposium, Hannover Fair, …) Focus countries (US, China, Germany, Brazil, Mexico) Employer branding (Adaption of existing motifs) Others Please reach out to us if you see relevance to start brand morphing

8 The digital layer Goal Highlight the business value delivered to customers by combining electrification, automation and digitalization and connecting the digital and physical worlds Visualization We add a digital layer to the existing physical world Message Siemens meets customer needs in an increasingly digitalized world Implementation The Digital Layer has been integrated into several pilots, such as film, advertisements or online banners. Further applications in development. Next steps Ready mades to be available in February For details on how to apply the digital layer please refer to

9 Global topic architecture
Vision 2020 Vision 2020 helps us grow profitably and sustainably. With our clear strategy in electrification, automation and digitalization we are well positioned for the future. Our ownership culture will further cultivate a sense of entrepreneurship among employees. Digitalization We combine our strong engineering and data competences to provide value to our customers, by making big data smart. Sustainable energy We help electrify the world by providing solutions for sustainable generation, reliable and low-loss transmission and distribution as well as efficient consumption. Future of manufacturing We seamlessly connect the virtual and real worlds of product development and production. Our automation and drive technologies and innovative software enable greater productivity, flexibility, resource efficiency and shorter time to market. Intelligent infrastructure Through automation and digitalization we help our customers to reap the full potential of urban infrastructure to increase efficiency, reduce operation costs, improve safety & resiliency, and lower environmental burdens.

10 Our growth fields in electrification, automation and digitalization
Selected growth fields Digitalization Business analytics and data-driven services, software and IT solutions 8% Digital-twin software Distribution grid automation and software Image- guided therapy and molecular diagnostics Urban and interurban mobility Key verticals in process industries e.g., O&G, F&B Flexible and small gas turbines Automation 1 7% 8% 7% 5% 8-10% 6% Electrification Offshore wind power 18% x% Power to last Drive energy management Efficient urban mobility Shape Industrie 4.0 Grow in Process Industries Next Generation Healthcare Est. market growth (CAGR)

11 concept that ensures our lasting success by making real what matters
Messaging Vision 2020 We optimize the environment our businesses operate in, to best support their lasting success We have a clear strategy for profitable growth in electrification, automation and digitalization We simplify and accelerate processes by reducing complexity We speed up decision making through fewer management layers and more stringent governance We introduced a new ‘operating system’ with four priority-action areas to effectively implement our strategy: Customer proximity: We invest in a local sales, support and presence to meet and exceed our customers' expectations Innovation: we foster an open innovation culture, and increase our focus on growth areas, particularly software and IT solutions Business excellence: We strive for excellence in managing our business and aim for continuous improvement People excellence and care: We cultivate an ownership culture and promote lifelong learning and personal development We focus on both core businesses and growth fields along electrification, automation and digitalization. Electrification: We are positioned along the entire value chain. As leaders in this field this is where our future lies. Automation: We hold leading market positions worldwide and we intend to maintain and expand these positions. Digitalization: We want to exploit the opportunities of software solutions even better as the value add for customers lies increasingly in this field. Vision 2020 is an entrepreneurial concept that ensures our lasting success by making real what matters We want to foster an ownership culture that inspires everyone to act as if this is their own company We empower our employees to take decisions on all levels and enable them to take personal ownership of our company’s success We want everyone to share in our company’s success by increasing the amount of employee shareholders. Our ownership culture is based on the following principles: Leadership, entrepreneurial behaviors, people orientation, company values and equity culture. Siemens matters most: We should always act in the best interest of Siemens - beyond divisions, regions and processes. For full details on Vision 2020 strategy please see:

12 Messaging Digitalization
Siemens enables customers to reach new levels of productivity by combining data and engineering technology Our industry-specific software applications optimize performance along the entire value chain, delivering proven outcomes The world is becoming more connected. The internet of things will lead to collaborative ways for machines and people to interact. The real and digital worlds are converging and Siemens is uniquely positioned in both. Due to increasing global competition, resource scarcity, decentralization and individualization, products will become more customized, resources must be used more efficiently, and infrastructure systems must become more sustainable and resilient. Siemens creates the next level of efficiency by combining the real and virtual worlds. This results in significant customer benefits along the entire value chain: higher productivity and accelerated time-to-market in design and engineering, new levels of flexibility and resilience in production and operations predictive and efficient services and maintenance Across all domains, Siemens helps customers transform their core operations through the integration of data, software and hardware – delivering proven outcomes Our software solutions across the entire lifecycle of products and manufacturing facilities increase productivity and efficiency, and reduce time to market by up to 50% Intelligent traffic information and management systems from Siemens help reduce congestion, accidents and CO2 emissions by up to 20%. Through smarter building technologies, the energy consumption of buildings can be reduced by up to 40% Smart grid technologies balance supply and demand to accommodate increasing demand, while also enabling the large-scale integration of renewables at 40% less cost Siemens syngo.via software can significantly help save time when reading medical images. Time savings for cardiac exams with CT amount up to 77% compared to other reading solutions By connecting hardware, software and data we create the next level of efficiency for our customers Siemens will significantly expand its leading position in connecting hardware, software and data Digitalization is of utmost strategic importance to Siemens and our customers. The intelligent processing, analysis and application of the masses of data generated by our systems and products offers huge business opportunities Siemens is already one of the biggest software companies employing 17,500 software engineers More than 280,000 customer devices worldwide are monitored by the common Remote Service Platform (cRSP) from Siemens. Siemens has been active in Silicon Valley since 1960s and invested in 170 companies and 40 VC’s. The vertical IT & software market targeted by Siemens is growing some 8% annually and is estimated at €100 billion for 2020

13 Messaging Sustainable energy
Energy systems are changing world wide with new technologies and players entering the market, building a complex infrastructure Our best-in class technologies and services span the entire energy value chain enabling an affordable, reliable and environmentally friendly power system Oil & Gas: We help our customers to operate efficiently and reduce impact on the environment. Our technologies drive profitability and lower the variable cost of production regardless of the price of oil. Efficient and clean power generation: Our highly-efficient fossil power systems maximize the use of scarce resources, while flexible gas power plants are the perfect low emission partner for renewables. We are market leader in Offshore Wind technologies. Power transmission & distribution: Our transmission and distribution technologies transport electricity reliably and efficiently with lowest loss possible. Smart grid solutions stabilize grids and enable the integration of distributed energy sources. Energy storage: solutions help facilitate the integration of variable renewable power and stabilize supply. Energy efficiency: Our products help control and reduce energy consumption in buildings, industry and transportation. Energy is the basis for economic activity. A reliable and affordable supply is not only critical, but indispensable for societal development and prosperity. Changing energy markets, the rise of unconventional fuels, growing decentralized generation, new forms of energy-conversion and increased digitalization pose challenges and opportunities for the world’s energy system. Adressing climate change needs continued decarbonization: Around 40 percent of the world's GHG emissions come from the energy sector, necessitating the need for cleaner power generation. Energy efficiency key to reduce energy consumption. We help power the world and provide solutions to supply and use energy more efficiently With a deep commitment to partnering with our customers to solve their challenges, backed by our technical know-how and innovation strength, we deliver pioneering and value creating solutions We want to become a trusted partner to our customer globally - offering innovative, value-creating and tailored technologies along the entire value chain of energy systems worldwide. We provide the highest level of service combining smart data with technology know-how. This helps our customers achieve optimal performance, availability and reliability for the lifecycle or their energy investments. By integrating digital and automation technologies, we help customers optimize their energy operations. We offer financing solutions to enable customers to realize large-scale energy projects. With 140 years’ global experience in energy technology, we help our customers and societies to address their most pressing challenges.

14 Messaging Future of manufacturing
Technological and social changes are resulting in a new era of manufacturing around the world Our digital technologies are driving the transformation of manufacturing Industrial enterprises face constant pressure as customers demand new, customized products in ever shorter time intervals. Global competition is intense and enterprises must continually increase productivity, reduce energy and resource use to keep costs down. Technology is changing the face of industry, which is increasingly seen as a driver for innovation, growth and stability. Mature economies are experiencing a manufacturing resurgence and the creation of highly skilled jobs. For emerging and developing countries, industry is a ladder to greater productivity and a rising standard of living. Through our technologies we help industrial enterprises to reach a higher level of competitiveness and to thrive in changing markets The “Siemens Collaboration Platform” is a holistic automation solution that enables seamless integration of development, production and suppliers Our energy- and resource-efficient solutions improve business performance, reduce lifecycle costs, and meet environmental regulations Industrie 4.0 is the next step into a new industrial era. Plants, products and machines self-organize in an integrated value chain enabling industrial customers to produce with a higher flexibility and achieve mass customization. We enable industrial enterprises to advance manufacturing and remain competitive Industrial enterprises increase productivity, enhance flexibility and reduce time to market through our world-leading industry software, automation and drive technologies Specializing in vertical market segments, we meet customer needs along the entire value chain. Simulated validation with PLM software of the product development and production process ensures highest productivity and shortens time to market. Totally Integrated Automation minimizes engineering time and reduces costs – through efficient interoperability of all automation components. Integrated Drive Systems shorter time to market and shorter time to profit for our customers by seamlessly integrating all drive components, in any automation environment, with software and services for lifecycle management. Industry Services increase availability, reduce downtime and costs in order to boost the performance of machines and plants – along their entire lifecycle. Preliminary: To be revised after further strategic alignment

15 Messaging Intelligent infrastructure
Infrastructure is the backbone of economic growth and prosperity Automation and digitalization makes infrastructure intelligent Between 2013 – 2030 more than $50 trillion* will need to be invested in infrastructure in order to keep up with global GDP and population growth. In advanced economies the challenge is to maintain, modernize and upgrade ageing infrastructure as cities often have not been designed to cope with the population and lifestyles of today. In developing economies, the infrastructure can often not be built quick enough to keep pace with growth. Building new infrastructure offers possibilities for technology leaps. The level of automation and intelligence in many infrastructure systems is far below what is technologically possible. Improving assets utilization, better maintenance regimes and demand management technologies could generate savings of up to $400 billion a year.* Siemens has the domain know-how to turn the masses of data generated in an infrastructure system into tangible improvements in its daily operations. Applying intelligent algorithms that process the data and initiate immediate actions optimizes the performance of infrastructure assets. Innovative technologies integrate platforms across infrastructure systems to offer a holistic view and more efficient resource use: smart buildings in a smart grid, integrated mobility platforms etc. Intelligent Infrastructure makes economies, cities and businesses more efficient, competitive and resilient. Siemens intelligent infrastructure systems improve efficiency, lower cost, increase resiliency and bring environmental benefits Intelligent technologies boost the performance of urban infrastructure systems like transportation, water, electricity and buildings. They increase capacity, improve resource efficiency and strengthen resilience so they are able to withstand and respond to sudden shocks like weather hazards. Intelligent urban transport solutions reduce congestion, accidents and CO2 emissions by up to 20%. Driverless metros can increase the passenger carrying capacity by up to 20% Building Managements systems can reduce energy consumption of buildings by up to 40%. Smart energy management technologies reduce transmission losses and balance loads in order to accommodate increasing demand without the need for extra power generation capacity. They also enable the integration of decentralized power, such as renewables, at 40% less cost. * Mckinsey, Infrastucture productivity 2013

16 Communication Target Groups
Business support through thought and solution leadership Customers Political Stakeholders Employees Investors Multipliers Who E.g. CEOs, CIOs*, technical experts E.g. government, party leaders, Mayors E.g. leadership, blue collar, potential employees E.g. shareholders, financial analysts E.g. press, NGOs, academics, market analysts* (e.g. Gartner) Buy our products. Partner of choice Influence regulations and laws Ownership culture. Employer of choice Attractive long-term investment Amplify our messages, third party endorsement Why *new important target groups

17 Global Communication Roadmap FY15
As of Feb 3, 2015 FY15 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Focus topics Digitalization Vision 2020 Future of Manu-facturing Sustainable Energy Intelligent Infrastructure Digitalization Roadshow IDG/The Atlantic Roundtables & Media Cooperation Digitalization Research Communication Highlights* Gartner Symposium Barcelona, Nov 9-13 SBC Berlin, Oct 8-10 Annual Press Conf. Berlin, Nov 6 Capital Market Day Berlin, Dec 9 AGM, Q1 Munich, Jan 27 Cebit Hanover, Mar 16-20 Hannover Messe Hanover, Apr 13-17 CERA Week Houston, Apr 20-24 Q2 May 7 PowerGen Europe Amsterdam, Jun 9-11 Q3 July 30 Annual Report OTC Houston, May 5 - 8 Christening New Service Vessel Hamburg, Rostock, June European Utility Week Amsterdam, Nov 4-6 SPS IPC Drives Nuremberg, Nov 25-27 DistribuTEC San Antonio, Feb 3-5 EWEA Offshore (Launch D7) Copenhagen, March 10-12 UITP - International Association of Public Transport EWEA - European Wind Energy Association EWEA 2015 Annual Event, März, Paris AWEA - American Wind Energy Association AWEA WINDPOWER Conference & Exhibition, Mai, Orlando SPS IPC Drives, Nürnberg: Zweitgrößte Messe für Siemens, Kundenfokus, Siemens mit eigener Halle Achema, Frankfurt: Größte Messe für Branchen und Prozessinudstrie, drittgrößte Messe für Siemens Juni 2015 Industry Topics: Themen: + Prozessindustrie inkl. Eigener Kampagne + Positionierung Digital Factory/Industry 4.0 + Neue Energieeffizienznorm der EU (kommt bereits im Okt./Nov. 14, eigene Ausstellung dazu auf der Nürnberg-Messe, klingt spannend) Siemens is to build a combined cycle gas turbine power plant with an electrical output of 595 megawatts at the Lausward location in Düsseldorf. That's a new world record for a single combined cycle block. The net energy conversion efficiency will add up to more than 61 percent. That's also a world record, surpassing the previous record of percent achieved at the combined cycle power plant in Irsching. A third world record will be achieved through the extraction of energy for district heating. Never before has it been possible to extract 300 megawatts of thermal energy from a single gas turbine power plant block in combined cycle operation. Smart Cities Event Amsterdam, Jun 2-5 World Cities Summit Majors Forum New York, Jun 8-10 China International Industry Fair Shanghai, Nov 4-8 PowerGen International Orlando, Dec 9-11 Lausward April 4 UITP World Congress Milan, Jun 8-10 Achema Frankfurt, Jun 15-19 Mission forms the basis for communications Start TBD Branding Prepare the organization (seeding) Start of new brand platform Internally: internal understanding. Mission informs communications Externally: Brand morphing phase – moving on from ‘answers’ Launch of new brand platform and campaign to strengthen the brand and drive business *S, A activities with high positioning relevance and business impact February 2015 Page 17 CG G CST

18 Global Communication Roadmap FY16
As of Feb 3, 2015 FY16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Focus topics Digitalization Alignment of topics and communication highlights after Division/Country input Vision 2020 Future of Manufacturing Sustainable Energy Intelligent Infrastructure Communication Highlights* SBC Berlin CW 43 Annual Press Conference (TBC) Berlin Nov Capital Market Day (TBD) AGM Munich, Jan 26 Cebit Hanover, Mar 14-18 Hannover Messe Hanover, Apr 25-29 CERA Week March/April Annual Report Q4 Nov 12 Q1 Jan Q2 May Q3 July UITP - International Association of Public Transport EWEA - European Wind Energy Association EWEA 2015 Annual Event, März, Paris AWEA - American Wind Energy Association AWEA WINDPOWER Conference & Exhibition, Mai, Orlando SPS IPC Drives, Nürnberg: Zweitgrößte Messe für Siemens, Kundenfokus, Siemens mit eigener Halle Achema, Frankfurt: Größte Messe für Branchen und Prozessinudstrie, drittgrößte Messe für Siemens Juni 2015 Industry Topics: Themen: + Prozessindustrie inkl. Eigener Kampagne + Positionierung Digital Factory/Industry 4.0 + Neue Energieeffizienznorm der EU (kommt bereits im Okt./Nov. 14, eigene Ausstellung dazu auf der Nürnberg-Messe, klingt spannend) Siemens is to build a combined cycle gas turbine power plant with an electrical output of 595 megawatts at the Lausward location in Düsseldorf. That's a new world record for a single combined cycle block. The net energy conversion efficiency will add up to more than 61 percent. That's also a world record, surpassing the previous record of percent achieved at the combined cycle power plant in Irsching. A third world record will be achieved through the extraction of energy for district heating. Never before has it been possible to extract 300 megawatts of thermal energy from a single gas turbine power plant block in combined cycle operation. China Industry Fair Shanghai Nov 3-7 World Cities Summit (TBC) Singapore July Gartner Symposium Orlando, Oct 4-8 Gartner Symposium Barcelona, Nov 8-12  State of Infrastructure TBD Los Angeles Sept/Oct Big Idea/Santa’s Workshop TBD US, GER, Global Nov/Dec *S, A activities with high positioning relevance and business impact


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