Siemens in Ireland Restricted © Siemens AG 2013 All rights reserved. siemens.com/answers Our vision and our values Siemens – the pioneer in Our values Responsible Energy efficiency Industrial productivity Committed to ethical and responsible actions Excellent Achieving high performance and excellent results Affordable and personalized healthcare Innovative Intelligent infrastructure solutions Restricted © Siemens AG 2013 All rights reserved. Page 2 May 2013 Being innovative to create sustainable value Key Figures Revenue by Sector Revenue by Region Infrastructure and Cities Healthcare 17% 35% Energy 20% 14% 22% 26% Germany Asia, Australia Americas Industry 29% 37% Europe, CIS, Africa, Middle East (excl. Germany) Based on customer location Revenue and employees Employees in thousands Continuing operations – comparison with previous year 100,000 500 80,000 400 in millions of € FY 2011 FY 2012 60,000 300 New orders 85,166 76,913 40,000 200 Revenue 73,275 78,296 100 Income 7,376 5,184 Free cash flow 5,918 4,790 359,000 370,000 20,000 FY 0 Revenue in millions of € 1986 1990 1995 2000 2005 Restricted © Siemens AG 2013 All rights reserved. Page 3 May 2013 2012 Employees Megatrends shape our future Urbanisation Climate Change Demographic Change Globalisation Restricted © Siemens AG 2013 All rights reserved. Page 4 May 2013 Megatrends challenges – Siemens’ answers for an urbanising world Cities are centres of growth • Infrastructure spending amounts to €2 trillion* worldwide / year €1,700 billion 260320 • Siemens-relevant market: €260 – 320 billion Siemens has the answers • Energy: leading HVDC technology transmits power from remote energy sources to cities at low loss • Building technology: "Performance Contracting" – energy savings of up to 40% finance investments in energy efficient building technology World population in billions 9,3 • Cities account for 6,9 70% 50% Cities 80% of greenhouse gas emissions • By 2050, about 70% of the world population will live in cities • Security: complete solutions • Mobility: full spectrum of mobility systems (Complete Mobility) • Water: largest provider of products for every stage of water treatment • Healthcare: world leader in IT solutions for healthcare, efficient processes in Restricted © Siemens AG 2013 reserved. 2030” * Calculations based on OECD dataAll inrights “Infrastructure Page 5 May 2013 hospitals lower costs Innovation-driven growth markets Dynamic growth of Siemens' environmental portfolio Revenue Environmental Portfolio in € billions Target >40 27.4 FY 20101) 29.9 FY 2011 FY 2014e • 317 million tons2) accumulated CO2 – abatement exceeding our target of 300 million tons • New innovative products such as premium efficiency motors, direct drive wind turbines and H-frame gas turbines to drive future growth 1) 2) FY 10 comp. excl. Osram and including newly qualified portfolio Incl. Osram Restricted © Siemens AG 2013 All rights reserved. Page 6 May 2013 Siemens in Ireland Locations Siemens Limited Fitzwilliam Court, Leeson Close Management, Sales, Service and Commercial Revenue: €211 m Employees: 550 Diagnostics Manufacturing Chapel Lane, Swords Export and Manufacturing Site Service centre Service depot Sales office Global production centre Restricted © Siemens AG 2013 All rights reserved. Page 7 May 2013 Siemens spend in Ireland: €133m Siemens in Ireland Locations Siemens Limited Revenue: €270 m Fitzwilliam Court, Leeson Close Employees: 600 Management, Sales, Service and Commercial – 260 employees Siemens purchases in Ireland: €130m Siemens Healthcare Diagnostics Manufacturing Chapel Lane, Swords Export and Manufacturing Site with – 293 employees Service centre Service depot Sales office Global production centre Restricted © Siemens AG 2013 All rights reserved. Page 8 May 2013 Siemens Security Products – Clonshaugh Business & Technology Part R&D Facility – 26 employees Siemens Ireland History The Siemens subsidiary SiemensSchuckert (Ireland) Ltd. Is founded in Dublin. Work is begun on laying the first direct telegraph cable across the Atlantic, linking Ballinskelligs Bay on Ireland’s west coast to North America 1874 1883 1925 William Siemens builds the Portrush-Bushmills railway in County Antrim, one of the first electric railways. 1925-1929 1998 The company installs a Magnetom magnetic resonance imaging system in Dublin’s new Mater Private Hospital, the first system of its kind Restricted in Ireland. © Siemens AG Page 9 May 2013 1999 Siemens builds the world’s largest peat-fired power station in Rhode, County Offaly. 1937 The Shannon hydroelectric power station is constructed in Ardnacrush to provide complete electrification for the Irish Free State. 1952 2000 2003 Siemens delivers the overhead line system for the DART rapid transit network. 1969 1984 The Irish Electricity Supply Board (ESB) awards Siemens a contract to provide equipment for Turlough Hill, Ireland’s first pump-fed power plant. Siemens equips three blocks of the Moneypoint Power Plant with new instrumentation and controls as part of the plant’s upgrading 2005 Siemens sets up an international online customer service centre in Cork for Siemens communications equipment. 2013 All rights reserved. 1963 The Irish companies are reacquired following the war. Siemens completes a state-of-the-art upgrade of the instrumentation and controls at the Guinness Brewery in Dublin A broadband ATM network is constructed for Telecom Eireann. 1986 The Siemens-Schuckert Manufacturing Co. is established in Dublin (specializing in meter assembly). 2007 Siemens wins an order to equip the Platin cement factory of Irish Cement Limited with an automation system Huntstown Power, Ireland’s first independent power plant Siemens designed and built a baggage handling system for Dublin Airport’s T2 2010 Siemens receives 126 MW wind power plants order in Ireland 2013 Siemens in Ireland is a pioneer In The Past • Portrush– Bushmills railway, one of the world’s first electric railways in 1883 Today • Siemens designed and built the baggage handling system for T2. • 1925 - 1929: The Shannon HydroElectric Scheme at Ardnacrusha • Provider of wind turbines to Ireland’s growing wind energy market. • 1986 Ireland’s first MRI scanner at the Mater Private Hospital • New Erne Hospital latest diagnostic technology in angiography, CT, MRI and Digital X-ray. Restricted © Siemens AG 2013 All rights reserved. Page 10 May 2013 Organization Structure Sectors Industry Energy Healthcare Infrastructure & Cities Industry Automation Fossil Power Generation Diagnostics Rail Systems Drive Technologies Wind Power Imaging & Therapy Mobility and Logistics Customer Services Solar & Hydro Clinical Products Smart Grid Energy Service Customer Solutions Low & Medium Voltage Power Transmission Building Technologies Oil & Gas Lighting (OSRAM) Central Areas Administration, Controlling and Finance Siemens Real Estate Corporate Human Resources Corporate Supply Chain Management Corporate Communications Quality & Environmental Management Export Control & Customs Officer Regional Compliance Office Siemens Financial Services Equity Inv.: BSH Bosch und Siemens Hausgeräte, Nokia Siemens Networks, Atos Origin. Restricted © Siemens AG 2013 All rights reserved. Page 11 May 2013 Infrastructure and Cities Sector profile Highlight in Ireland Market situation • One third of Irish population lives in Greater Dublin Area. • Dublin performs poorly on European Green Cities Index. • Limited capital expenditure – Luas BDX will go ahead. • Rollout of Electric Vehicle infrastructure Siemens answers • Electric Vehicle Solutions Siemens has received a major order for its model CP500A charging point. • Finance As part of plans to roll out a nationwide charging infrastructure, Siemens Ireland concluded a framework agreement for delivery of up to 100 charging points. Restricted © Siemens AG 2013 All rights reserved. Page 12 May 2013 Industry Sector profile Highlight in Ireland Market situation • Capital spending dramatically reduced in some areas. • Food and Beverage, Pharma continues to perform. Construction sector suffering. • Energy efficiency and Sustainability emerging as a cost lever and green image attribute for companies. • Commitment to Domestic Water metering. Siemens answers • Leader in automation technologies. Strong in Food and Beverage/Pharma. • Biggest provider of products and systems for every stage of water treatment © Siemens AG 2013 All rights reserved. • Restricted Performance Contracting Page 13 May 2013 A leading Irish meat processor has chosen Siemens to provide energy management services. Their goal is to identify opportunities for cost savings though improved energy efficiency and reducing water usage in the plant. 80 monitoring points are accessed remotely from the Siemens office in Dublin where Siemens engineers analyze energy and production data to identify savings projects. Energy Sector profile Market situation • Renewables currently at 13% of electricity generation with ~1350MW in Republic of Ireland and ~400MW in Northern Ireland. • Both jurisdictions aiming for 20% by 2020. • Build out rates are slow at the moment with ~120MW/year, need 300MW/year to hit 2020 targets. Siemens answers • Siemens installed base of wind farms 15% of the installed base on the island. Enough power for 150,000 homes. • Current employment in renewables ~45. Restricted © Siemens AG 2013 All rights reserved. Page 14 May 2013 Highlight in Ireland Siemens has supplied Scottish Southern Energy Renewables with 12 wind turbines each with a capacity of 2.3 megawatts for its wind farm in Slieve Kirk, Northern Ireland. The Slieve Kirk wind farm generates enough power to supply 16,000 homes and save the release of between 27,000 and 65,000 tonnes of CO2 annually. Healthcare Sector profile Highlight in Ireland Market • HSE budget cuts of 1billion in 2010 followed by cuts of 800m € in 2011. • Private sector diversifying with ‘walk-in’ and A&E services. • Commitment to new Children’s Hospital in 2016. Opened in June 2012, the South West Acute Hospital provides approximately 300 in-patient beds. •Siemens answers • Large installed base. Leader in imaging market. • Strong service team. • Move into primary care market. • New financing models: Managed Equipment Services. The MRI system, the new MAGNETOM Aera , the first one to be ordered on the island, boasts a wide 70cm Open Bore and provides a more open environment to minimise stress for patients • Employees: 65 Restricted © Siemens AG 2013 All rights reserved. Page 15 May 2013 Siemens supplied the latest technology in angiography, CT, digital X-ray and MRI. Siemens Ireland: Key Areas for Growth Energy Management Renewables Marine Energy E vehicles Healthcare Imaging Healthcare Diagnostics Restricted © Siemens AG 2013 All rights reserved. Page 16 May 2013 A leader in compliance and sustainability as recognized by Dow Jones index Siemens is included for the 13th time in a row in the DJSI World Index • • • • Labor Practice Indicators Human Capital Development Talent Attraction & Retention Corporate Citizenship and Philanthropy • Occupational Health and Safety • Social Reporting Average Score 1) Supersector Leader “Industrial Goods & Services" Average Score 1) 47% Siemens Score 88% Siemens Score 92% Average Score 1) Siemens Score • Corporate Governance • Risk & Crisis Management • Codes of Conduct/ Compliance/ Corruption&Bribery • Innovation Management • Customer Relationship Management • Supply Chain Management2) • Strategy for Emerging Markets2) 41% 96% 1) Average score of all assessed in the Diversified Industrials sector Restricted © Siemens AG 2013 companies All rights reserved. 2) New categories in 2012 Page 17SAM, Sustainability May 2013 Office Source: Siemens Score 50% 94% • Environmental Policy / Management System • Operational Eco-Efficiency • Product Stewardship • Climate Strategy • Water Related Risks • Environmental Reporting What is Zero Harm? Everyone at Siemens has a safe working environment at all times so that they may return to their family and friends as healthy as when they started the day. Our Zero Harm culture is based on three principles: • Zero incidents – it is achievable. • Health and safety –no compromises! • We take care of each other. Zero Harm to our safety, to our health, and to our environment Restricted © Siemens AG 2013 All rights reserved. Page 18 May 2013 Zero Harm: an holistic approach to Safety, Well being and Environmental Protection Zero Harm encompasses Be Safe Feel Well Think Green • Safety in the Workplace VDU, training, work design • Radiation Safety ICSDs, Healthcare • Dangerous Goods Transport gases, waste, chemicals • Active Risk Management fire protection, disaster prevention • Health Promotion medical screening, health awareness campaigns • Mental Wellbeing Employee assistance programme, stress management training • Medical Services Reduction of occupational risks, medicals, flu prevention, return to work • Energy Management reduction of site energy use, awareness campaigns • Waste Handling recycling & segregation at sites, project planning • Green Team employee driven to reduce, reuse, recycle. • Product-related product design, product recycling Restricted © Siemens AG 2013 All rights reserved. Page 19 May 2013