© Siemens AG 2010. All Rights Reserved. Industry SectorPage 1 How do you achieve sustainable business?

© Siemens AG 2010. All Rights Reserved.

Industry SectorPage 1

How do you achieve sustainable business?



Sustainability Indexes

Launched in 1999, the Dow Jones Sustainability Indexes are the first global indexes tracking the financial performance of the leading sustainability-driven companies worldwide. Based on the cooperation of Dow Jones Indexes, STOXX Limited and SAM they provide asset managers with reliable and objective benchmarks to manage sustainability portfolios.

Selection of No.1-positions in actual report (Sep. 2009) adidas (Personal & Household Goods) BMW (Automobiles) DSM (Chemicals) Nokia (Technology) Roche (Health Care) Total (Oil & Gas) Unilever (Food & Beverage) Siemens (Diversified Industrials)



Sustainability

Considerable contribution from Siemens towards implementing the United Nations Millennium Development Goals

Siemens vision of a sustainable and fair world economy

Siemens is member of the World Business Council for Sustainable Development (WBCSD) together with 200 global leading companies

Siemens founded an international Sustainability Advisory Board

2009: 23 b€ turnover with Sustainable Products (+11%)

For Siemens, Sustainability is a mission:

"Creating sustainable value through technological leadership"



Sustainability

EconomicEnvironment

Social

Bearable

Sustain-able

Equitable

Viable



SOCIAL responsibility

Siemens solutions for traceability of drugs helps fighting against counterfeiting and supports patient safety

Health for everyone throughout the globe – logistically and economically

Siemens supports the pharmaceutical industry in the research of new diseases and their control

Drinking water is a precious commodity and indispensable for good health

Air contamination has a negative effect on peoples´ health. Siemens contributes towards a significant reduction in greenhouse gas emissions



ECONOMIC responsibility

Going green pays off

In fiscal 2008, products and solutions from the Siemens portfolio reduced customers‘ CO2 emissions by approx. 34 million tons

With the savings achieved by products and solutions installed in previous years, emissions were reduced by a total of roughly 148 million metric tons



ENVIRONMENTAL responsibility

A healthy environment for today's and tomorrow's society. It is a global responsibility to create the conditions to ensure this

Siemens has the most comprehensive environmental portfolio worldwide

On the R&D side, Siemens spends more than 850 mn Euros per year on environmental and climate protection

Siemens´ environmental portfolio is being continually developed and redefined

The portfolio's revenue and CO2 savings for fiscal 2008 was reviewed

by the independent auditor PricewaterhouseCoopers

Siemens is an active member of several climate change initiatives in Germany and globally



Responsible Care®

Global charterResponsible Care® is the chemical industry’s global voluntary initiative to continuously improve their health, safety and environmental performance. Responsible Care® is a uniquely designed initiative that enables the global chemical industry to make a strong contribution to sustainable development.

Through improved performance, expanded economic opportunities, and the development of innovative technologies and other solutions to societal problems, the industry will continue taking practical steps to implement initiatives in support of sustainable development.

Members Germany (summary)



Responsible Care®

WasteEmissionAir

EmissionWater

ConsumptionEnergy

ConsumptionWater

Health &safety

Environment protection

Use of resources

http://www.responsiblecare.org



Energy – Waste – Water – Emission

Energy Waste EmissionWater



Energy



Market challenges

EU: about 7 m€ unnecessary electricity costs every day because systems

are not equipped with speed-variable drive systems

are in some cases oversized

1.3 m€ a day could be saved and 3 million metric tons of CO2 could

be avoided annually through the systematic use of energy-saving motors

40 percent of the world's energy is consumed by buildings

21 percent of greenhouse gas emissions can be accounted on buildings globally



Energy use in the Pharmaceutical Industry

Distribution of energy use in the Pharmaceutical Industry – energy consumption

Plug loads & processes

Lighting

HVAC

25%

10%

65%



Customers requirements

Energy efficient building design

Design of processes to save energy, waste and reduce emission

Use sensors and monitoring solutions to identify energy losses and inefficient assets

Increase of asset utilization

Reduction of lead time



Siemens Answers

Increase energy efficiency of buildings with Siemens’ intelligent and integrated building and room automation

Management of Utilities to safe Energy

Energy-saving motors from Siemens are characterized by a 40% lower power loss compared with standard motors

Choke controls, electric drives used together with frequency converters from Siemens gain up to 60-70% when operating with fans, pumps or compressors

Integrated solutions according to Siemens’ Totally Integrated Automation (TIA) concept reduce lead time and energy concurrently

Siemens’ Power Management System optimizes the use of energy reduction of energy costs by up to 20%



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Waste



Market challenges

US pharmaceutical industry is wasting more than 50 b$ p.a. due to inefficient processes

Approximately 200kg solid waste is generated per metric ton of API manufacturing

Process inefficiency is institutionalized5-10% waste is planned

Sigma PPM Defects Yield Cost of quality

2 308.537 69,2% 25-35%

3 66.807 93,3% 20-25%

4 6.210 99,4 % 12-18%

5 233 99,98 % 4-8%

6 3 99,99% 1-3%

Pharma




Avoid waste in inefficient clinical batch production and batch-to-batch variations

Reduce off-spec production to avoid waste (amongst others) in the form of unusable product

Minimize waste in Lab testing

Avoid products to expire during warehousing



Siemens Answers

Process optimization as Right first Time and Online Analysis with Siemens’ software solutions will decrease lab testing efforts and reduce waste

With Siemens’ Tracking & Tracing solutions your supply chain will be managed and controlled to avoid expired raw materials and products

Continuous processing reduces intermediate material and waste. Siemens’ Totally Integrated Automation (TIA) enables efficient continuous manufacturing processes

Optimized Chromatography to analyze batches



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Water



Market challenges

“Water is the oil of the 21st century” Andrew Liveris, CEO of Dow Chemicals

The global water consumption is doubling every 20 years – water, unlike oil, has no substitute

40% of Fortune 1000 companies said the impact of a water shortage on their business would be “severe” or “catastrophic” – but only 17% said they were prepared for such a crisis.

Most wastewater must be reused as fresh water in future



Water consumption in Pharma

Per 21CFR part 210:

Pharma waters used in manufacturing of drugs or drug products are subject to the regulations of the cGMP‘s whether or not the product stays in the final product (e.g. cleaning, rinsing formulation etc.)

Water is the largest ingredient in almost every drug produced.

Bulk Manufacturing

Fill Finish

R&D

Miscellaneous (boilers, chillers etc.)

Facility60%15%

10%

10%5%




Reduction of water consumption

Significant reuse of wastewater

Guarantee high water quality

Meet regulatory requirements



Siemens Answers

Siemens solutions meet water quality requirements to ensure consistent processes and production

Siemens helps industry meet ever increasing industrial wastewater regulations, while improving efficiency and reducing waste disposal costs

Optimized Processes with Siemens’ Totally Integrated Automation (TIA) will lead to lower water consumption



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Emission



Market challenges

"We now have data showing that from 2000 to 2007,greenhouse gas emissions increased far more rapidly than we expected, primarily because developing countries, like China and India, saw a huge surge in electric power generation, almost all of it based on coal"

Christopher Field, Stanford University and the Carnegie Institution for Science



Global Emissions – worldwide challenge

Countries by carbon dioxide emissions via the burning of fossil fuels (blue the highest)

Greenhouse gas emission per capita in 2000



Customer requirements

Emission reduction due to optimized fuel burning processes and reduced energy consumption

High operational availability of 99,5%

Alternative Power Generation Solutions

Reduction of Air Consumption



Siemens Answers

Control of Emission to meet the environmental regulations

Siemens’ gas-cleaning process removes pollutants such as dust particles, heavy metals, SO2 and organic compounds from the off-

gas stream far more effectively than in conventional processes

Protection from emissions by Siemens’ Safety Solutions



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SIMATIC PCS 7





SIMATIC PCS 7 Optimization of Energy Efficiency 1/2

Challenge: Many process control applications are characterized by facts like:

start-up / shutdown procedures, change of operating points, or process-related dependency in closed-loops. This has a negative impact on the energy balance.

Normally, too much energy is used, and this by reduced yield, less throughput and long service life

Solution: Intelligent energy optimization with SIMATIC PCS 7 Advance Process Control

Benefits: Energy consumption is clearly reduced (3 to 10%) because the standard deviation is

minimized (up to 200%) and can be adjusted fast Yield is increased (about 2 to 10%) while energy consumption remains stable Transition between different operating points is optimized, which leads to faster operating

point changes – this reduces energy consumption



SIMATIC PCS 7 Optimization of Energy Efficiency 2/2

Challenge: 20% of the world wide electrical energy demand in production plants is used for pump works. Application of redundant systems or special monitoring systems involves a high financial,

energetic and plant specific additional expense

Solution: SIMATIC PCS 7 Plant Asset Management with Condition Monitoring

Benefits: SIMATIC PCS 7 offers a cost effective and energy saving solution for diagnosis of pumps

through clever & intelligent combination as well as interpretation of measured data



Energy EfficiencySIMATIC PCS 7 with SIMATIC Powerrate

Challenge: Many companies do not have the required transparency regarding energy consumptions

and the main cost originator The tariffs, arranged with the energy supplier, are based on energy peak values. But the

average consumption is much lower Energy limits are often exceeded and thereby causing additional costs or contractual penalty

Solution: Optimal monitoring and control of energy consumption with integration of the Power

Management Solution with SIMATIC powerrate for SIMATIC PCS 7 – a software add-on Energy consumption monitoring (power, current, voltage) by integration of SENTRON PAC

power monitoring devices and switch breakers and motor management systems in PCS 7

Benefits : SIMATIC powerrate provides transparency in energy consumption from the feed-in up

to the consumer Energy data including of non-electrical energies (e.g. gas, steam, oil...) are continuously

collected, archived and proceeded Identification of energy saving capabilities in combination with a more efficient energy

purchasing will help to reduce the energy costs Transparency enables the optimization of the energy consumption – und this totally integrated

in the PCS 7 environment



SIMATIC PCS 7Reduction of Waste

Challenge: Many process control applications are characterized by facts like:

start-up / shutdown procedures, change of operating points, or diversity of products and product quality as well. In the change-over undesirable products will be produced (waste)

Solution: High product quality with Advance Process Control Optimized material transportation with SIMATIC Route Control

Benefits: Transition between different operating points are optimized, which means faster operating

point changes and less production downtimes less waste Increased yield (typ. about 2 to 10%) less waste Consideration of material tolerance (no unwanted mixing) (no pudding of vanilla flavor with

chocolate flavor) Consideration of the status of the pipelines/reactors (cleaned, ...) Exclusive reservation of pipelines (e.g. for cure substances)



SIMATIC PCS 7 Water & Wastewater Treatment

Challenge: Industrial wastewater treatment plants (e.g. at starch production) require thinning /

neutralizing processes with long „dead times“, which are difficult to control from the closed loop control-strategy point of view

There are processes in industrial wastewater treatment plants, which are represented and automated with standard libraries only in a restricted way

Water / wastewater plants are geographically distributed over a wide area (sewer network, pump stations). The integration of these distributed plants into an comprehensive automation solution is a challenge.

Solution: Intelligent plant optimization with Advance Process Control Optimized solution based on water libraries Efficient plant management due to the integration of TeleControl

Benefits: Thinning-/neutralizing-processes are optimized without wasting recourses The Water Library provides an optimal solution for industrial and commercial drinking water

and wastewater treatment plants The distributed areas of plants are integrated into the total plant configuration in the same

Look&Feel. This helps to reduce operating failures by the operators (TeleControl)



SIMATIC PCS 7 Reducing emissions

Challenge:

Processes that run at a sub-optimal operating point or take too long to switch between operating points waste energy, creating additional and unnecessary emissions.

Faults and malfunctions can have fatal consequences in the process industry, so it is vital to do everything possible to eliminate them. The number one priority is to minimize the potential threats to people, plant and the environment by technical means without any negative effect on the industrial production process.

Solution :

Emissions control and prevention with Advanced Process Control

Integration of process safety into SIMATIC PCS 7

Benefits :

Standard deviation is minimized (typically by up to 200%) and optimally controlled lower emissions

Energy consumption is significantly reduced (typically by around 3 to 10%) reduced consumption means lower emissions (COx, NOx, etc.)

Safety: greater safety for people, plant and the environment(dioxin disaster in Seveso)



Sensor Systems





Sustainability: Answers of Sensor Systems in the Pharmaceutical Industry

Energy Efficiency / Management Reduced energy consumption due to optimized fuel burning processes via monitoring of

exhaust air and solvent combustion processes by Process Analytics (Oxymat; Ultramat, Fidamat; LDS 6)

Emission Monitoring of the exhaust gases in solvent combustion processes or flares by Process

Analytics (Oxymat, Fidamat, Ultramat or MAXUM / MicroSAM) helps to comply with environmental legislation for Continuous Emission Monitoring Systems (CEMS)

Waste Avoid waste in inefficient batch production, batch-to-batch variations and reduce off-spec

production by improved process control using process instrumentation and process analytics (e.g. Ultrasonic or radar devices for continuous level monitoring: Sitrans L; monitoring of dosing liquid and gas volume flows: Sitrans F; temperature and pressure monitoring Sitrans T and Sitrans P; Ultramat/ Oxymat; LDS 6)

Water To meet increasing industrial wastewater regulations, while improving efficiency and

reducing waste disposal costs by monitoring essential process parameters such as flow, pressure, level and temperature (Sitrans F; Sitrans P, Sitrans T and Sitrans L)



Energy EfficiencyOptimization of Utility-Processes

Challenge: Control of utility processes as e.g. compressed air and steam

generation; chilled water, de-mineralized water and electricity supply to ensure efficient, continuous and reliable manufacturing

Solution: Control and monitoring of level, temperature, pressure and flow

(SITRANS P, SITRANS T; SITRANS FO; SITRANS CLS 200; SITRANS LC 500) at e.g. glycol water, cooling water, industrial water, de-ionized water, city water and others to ensure optimal product compliance.

Benefits: Energy efficient, compliance oriented utility supply to ensure cost

effective, continuous and reduced off-spec production.



Reduction of Waste

Challenge: Measurement of 7 different solvents for solvent recovery

processes serving up to 7 batch processes with a single analyzer only

Seamless integration in plant production processes and plant communication networks

Solution: One MAXUM process gas Chromatograph in split airbath

oven operation 7 analytical methods using EZChrom software to handle

7 different batch processes

Benefits: Improved solvent yields through better and faster process

monitoring (3000 $ savings per batch; 150.000 $ savings per year) Reduced waste solvent with need for disposal; (10% reduced

solvent waste per batch) Improved process through-put due to much faster response time

from on-line process analysis (10.000 $ savings per year)



Emission Monitoring of exhaus gases

Challenge: Continuous monitoring of exhaust gases to control

critical explosive limits, combustion processes, denitrification and furnace operation, to monitor emissions and indicate leak warnings

Solution: Dependent on application installation of OXYMAT6

or 61; ULTRAMAT 23 or 6; LDS 6; FIDAMAT 6 or CALOMAT 6 for measurement of O2, CO, COX, NOX, SO2, NH3, THC, HCI, HF, CH4

Benefits: Continuous emission monitoring to comply with

environmental legislation and reduce air pollution Increased plant safety

SITRANS SL

ULTRAMAT 23 or 6FIDAMAT 6

CALOMAT 6 OXYMAT 6 or 61



SIPAT





Waste reduction with SIPAT

Challenge: The pharmaceutical industry wastes incredible amounts of valuable resources

and money due to processes that create off-spec or low-yield products. To compensate for this unpredictable result, a buffer of extra warehousing stock

is created, which in turn causes waste in the form of expired product.

Solution: A key element in the reduction of waste is Process Analytical Technology

(PAT) / Quality by Design (QbD). SIPAT – the PAT software solution of SIEMENS supports that approach

Benefits: Obtain a predictable process and predefined product quality Just-in-time production and manufacturing methods according to market demand

(increased throughput around 30%) Real-time product release eliminates time-consuming end-product testing

(scrap reduction around 5%) and further reduces waste in the form of expired warehouse product (stock cost reduction around 15%)



Result Manufacturing, throughput

reduced by 30% Quality 13% reduction QA/QC

cost (0’2€) Waste reduction; 3,5% (1’8 €) Inventory; reduction with 30%

(>10’0€) ROI < 2 year

Customer Value Example

Customer and sitean injectable plant in Ireland is seeking for cost saving (waste reduction) throughmodernisation of manufacturing andimplementing QbD

Measures (extract) Defining improvement scenario’s

for manufacturing Assessment of

improvement scenarios on: Labour Throughput time Quality Waste inventory levels



Building Technologies





Energy Analysis(EA)

En

erg

y /

Op

era

tion

Co

sts

Time

Savings

Ba

selin

e

Reduced Costsby EPC

Siemens Contract Volume

Energy Performance Contracting

Realization of measures from e-analysis

Total investment is covered by savings

Guaranteed savings with a predefined payback period

Integrated approach (Owner and tenant)

Financial solutions by contractor

Continuous optimization

Project Execution

Energy Performance Contracting (EPC)

Building PerformanceOptimization (BPO)

Energy Health Check(EHC)

Decisionby Investor &User

Pre-Selection of locations

Energy Performance Contracting (EPC)



The sustainable Energy & Environmental Solutions Process

Preliminary analysis

Detailedanalysis

Implementation Guarantee phase

Building Owner / Operator

Siemens Building Technologies

Letter of understanding Letter of intent Contract closure

Planning, installation, project management

Energy saving guarantee measurement, verification, servicePreliminary study Detailed study

Change of usage, consumption, accounting



Examples for safe, secure and compliant environmental conditions in R&D

Adjust the blinds according to the user profile

Increase staff comfort with centralized control functions

Adjust the air exchange rates in accordance with the personnel flow and user profile

Optimize energy consumption with optimized VAV

Increase staff safety with unique fire detection, extinguishing and evacuation solutions



Optimization of energy efficiencyin classified clean rooms

Adjust the air exchange rates in accordance with the user profiles

Monitor air exchange rates with continuous counting of particles

Adjust the lighting according to the user profile

Use the design space to regulate temperature and humidity

Adjust the air exchange rates in accordance with the personnel flow

Reduce the pressure differential by precisely measuring the air flow

Adjust the ISO class according to open and closed processes



Customer Value Example

Result Annual energy savings are

calculated at 1.646.268 kWh or over USD 186.000,-- in annual operating costs (ROI < 2 year)

Approximately 451 Ton of avoided CO2 emission per year

Customer and siteChiller plant interconnect and optimization project at genomics of large pharmaceuticalcompany

Measures (extract) Installation of a Optimal Multiple Parallel

Pump sequencing Variable primary chilled water Pumping

sequence Chilled water temperature optimization Optimal chiller sequence Condense water Temperature / Cooling

Tower / Fan Optimization



Water Reuse and Reclaim with Siemens W&WW Solutions



WT Success Story

Customer and site Large pharma plant, St. Louis, MO, USA Healthcare products facility Small ‘validated’ Purified Water system

with infrequent use

Details Worse case scenario for this

technology; Small 1.1m3/hr, Single train,

System production 32hr/wk (19% util) Validated USP PW Client wanted GREEN solution, Looking to duplicate globally Multi-media

FilterDual Softeners

Revolutionary Design : Reverse Osmosis / Continuous Deionization

(RO/CEDI)

Hot Water Sanitizable

Activated Carbon Unit

HeatExchanger

5 MicronPrefilter

Hot Water Sanitizable

Reverse OsmosisUnit

CDI LX Unit

to storage and distribution

A

A

Result Saving 823,000 gallons water/yr Saving €13,000/yr or €175,000/10yr Extremely low microbial counts

(85% of tests = 0 CFU/100ml,only 7 detections in 6 mon.avg = 0.12CFU/100ml(limit = 10,000 CFU/100ml)

System cost €113,000Revolutionary Design: ReverseOsmosis/Continuous Deionization (RO/CEDI)


Motors




Optimizing energy efficiencyMotors

Challenge: Electric drives account for around two thirds of total energy consumption in industry.

Given the steady rise in energy costs and current concerns about climate change, the energy consumption of drive products is accordingly a matter of significant and increasing concern.

Solution: Our energy-saving drives, frequency converters and

starters can help you exploit potential savings to the maximum, making you more competitive in the long term and simultaneously reducing your environmental impact: SIRIUS, SINAMICS, MOTOX, MICROMASTER, SENTRON

Benefits: Energy-efficient motors can reduce dissipation losses by 45% Further energy savings of up to 50% can be achieved by using frequency converters

(88% of all motors are unregulated) Retrofitting and optimization could cut annual CO2 emissions by 40 million metric

tons in Germany alone Energy consumption can be slashed by up to 70% using energy-efficient Siemens

drives





Supply Chain OptimisationWaste Reduction with Tracking & Tracing

Challenge: Guarantee patient safety Economical damage caused by counterfeits Brand protection

Solutions: Mass serialisation for ePedigree Tracking und Tracing solution based on WinCC und SIMATIC IT RFID-solutions French coding Retrofitting of existing packaging lines

Benefits: Improved product safety, mitigating the risk of counterfeiting and safeguarding Compliance with legal requirements and other national directives Waste reduction Increase in supply chain efficiency Streamlined and traceable production Clear verification of bulk material

Expiration date of product Material tracking Meeting FIFO principle


Energy – Power Generation




EmissionenPower Generation – Gas cleaning

Challenge: Gasification offers one of the cleanest and most flexible ways of converting coal and low-gradefuels into high-value products – electricity, chemicals or synthetic fuels. Combining gasificationwith advanced gas turbines in Integrated Gasification Combined Cycle (IGCC) power plantsresults in a highly efficient technology for coal-based power generation. Gasification can offerenvironmentally friendly plants with lower emissions and the combination with readily available

technology for CO2 Capture and Storage (CCS).

Solution:

Siemens Fuel Gasification Technology Dry solids feeding for high efficiency and low O2 consumption Top-mounted dust burner with extended burner lifetime Cooling screen for high availability and low maintenance Full water quench for simple and reliable design Benefits: High carbon conversion: > 98 % Operating pressures: 40 bar and above Shorter start-up times Smaller dimensions for reduced equipment costs High availability and low maintenance Proven experience: More than 20 years of successful operating experience

Documents

© Siemens AG 2010. All Rights Reserved. Industry SectorPage 1 How do you achieve sustainable business?