Benefits of Standardisation Experience @ Siemens ISO General Assembly 2011 New Delhi, September 22, 2011 Confidential / © Siemens AG 2011. All rights reserved Standards allow us access to global markets Market access Switchgear products Gear box Rotating machines MCB, RCBO, Fuses Page 2 Confidential / © Siemens AG 2011. All rights reserved Rotating machines are very widely used in Industry Background - Energy efficient LV motors 1 Industry consumes nearly 40% of energy produced 2 65% of energy in industries is used to drive motors 3 85% of the motors used in industries provide only standard efficiency 4 IS 12615 standard which recommends higher efficiency covers ~90 % of above motor sizes 5 Installed base of Motors confirming to IS 12615 in market in FY 05 < 1% Page 3 Confidential / © Siemens AG 2011. All rights reserved Despite IS 12615 being published in 2004, slower offtake of eff1 motors even in 2009 laid the foundation for this project Key milestones - Energy efficient LV motors Walk the talk Our refusal to offer lower efficiency motors (eff2) even though there was a large demand from the industry Convey the rationale to our sales organisation as well as channel partners Close working with regulators, thought leaders First Electric Motor Manufacturers to initiate Star Labelling for industrial Electric motors under BEE’s Standards & Labelling Program First in motor industry to be certified by BEE Working closely with International Copper Promotion Council, India Marketing and Sales tool kits like Energy Saving Plan (ESP) / Payback Estimation Program (PEP) Engaging with the market Payback oriented pricing structure Promoted field Efficiency Audits & Health Checkups for motors Facilitating financing models for investments in eff1motors Created awareness thru various seminars and exhibitions Page 4 Confidential / © Siemens AG 2011. All rights reserved We have been able to create sustainable value for our customers and environment by offering "only eff1" motors Estimated Results FY 11 - Energy efficient LV motors Share of eff1 motors is growing ~60% p.a. Corresponding growth in savings* ~90% p.a. 100% CO2 reduction 90% 60% 0% FY 02 1% 3% 16% FY 05 FY 08 FY 11 LV Motor market in kW kWh saving FY08 FY09 FY10 FY11 FY12 Eco savings in kWh * Assuming energy saved due to higher efficiency motors Page 5 Confidential / © Siemens AG 2011. All rights reserved Process driven Quality Management system has significant contribution in our growth Infrastructure development FY 00 - 10 Sales Engineers Our Sales Growth 1.6x Channel Partners 1.6x 1) Sales offices 1.3x CRM No. of new products PLM 2.8x R&D Manpower Engineering Manpower 2.1x 4.7x 12x No. of Factories 1.5x FY 00 FY 10 SCM Factory Employees Warehouse area (000 sq m) 1.1x 5.3x 1) No. of territory office ~30 (FY00) to 51 (FY10) Page 6 Confidential / © Siemens AG 2011. All rights reserved Intangible business impact: There are many benefits of active participation in Standardization & Regulation Management Benefits of Standardisation and Regulation activities Save time and money make design and manufacturing simpler, cleaner and surer improve the quality of life and that will contribute to technological progress Improve safety and quality encounter new and valuable ideas help you to avoid making costly mistakes Influence content Standards are the compromise result of competing interests Build acceptance in global markets Governments require evidence of manufacturing to standards when specifying contracts purchasers require products to be built to certain, standardized specifications Develop anticipatory intelligence acquire information that enables you to anticipate, before other stakeholders, circumstances that have not yet widely manifested themselves Use customer networks identify consumer needs and conceive new products through networking with user representatives on standards committees Recognition enhances industry and peer recognition offers a way to overcome some of resources limitation Page 7 Confidential / © Siemens AG 2011. All rights reserved Thank you Page 8 Confidential / © Siemens AG 2011. All rights reserved