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Corporate Technology Our central research and development unit siemens.com/innovation Unrestricted © Siemens AG 2017

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Corporate Technology

Our central research and development unit

siemens.com/innovation Unrestricted © Siemens AG 2017

Unrestricted © Siemens AG 2017

March 2017 Page 2 Corporate Technology

Corporate Technology –

Central research and development

2

3

4

1

Our mission

Our focal points

Our work – concrete examples

Our innovative power

Unrestricted © Siemens AG 2017

March 2017 Page 3 Corporate Technology

Our innovative power

For nearly 170 years, pioneering

technologies and the business models

developed from them have been the

foundation of Siemens’ success.

Our central research and development

unit – Corporate Technology (CT) –

plays an important role in this effort.

Unrestricted © Siemens AG 2017

March 2017 Page 4 Corporate Technology

Our milestones –

Over 170 years

1866

Dynamo

1816-1892

Company founder, visionary and inventor

1847

Pointer telegraph

1925

Electrification of Ireland with hydropower

1975

High-voltage direct-current (HVDC) transmission

2010

TIA Portal for automation

2016

MindSphere introduced as the digitalization platform for all industries

2012

Field testing of the world's largest rotor at an offshore wind farm

1983

Magnetic resonance tomograph

1959

SIMATIC controller

Werner von Siemens Siemens innovations over 170 years

Unrestricted © Siemens AG 2017

March 2017 Page 5 Corporate Technology

Our innovative power in figures –

Siemens as a whole and Corporate Technology

1 In fiscal 2016 2 Centers of Knowledge Interchange

€4.7 billion 33,000

7,500 3,500

€ €

9 16

3 Employee figures: As of September 30, 2016

Corporate Technology – Our competence center for

innovation and business excellence3

400 1,600

University cooperation –

our knowledge edge

Expenditures for research and development

Inventions and patents –

securing our future

Expenditures for R&D in fiscal 2016 R&D employees1

inventions1 patent applications1 CKI universities2

Principal partner universities patent experts

7,400 4,800 employees worldwide

software developers

researchers

Unrestricted © Siemens AG 2017

March 2017 Page 6 Corporate Technology

Our global presence –

A partner to customers around the world

A worldwide

presence

is the heart of the

Siemens brand – and

that goes for us as well

This presence enables us

to quickly offer targeted

solutions that are tailored

to regional requirements

Corporate Technology – worldwide locations

Germany

Switzerland

Austria

Hungary

Romania

Turkey

Qatar

United Kingdom

Denmark Czech Republic

Slovakia Russia

Japan

China

India

U.S.

>500 employees

100–500 employees

<100 employees

Unrestricted © Siemens AG 2017

March 2017 Page 7 Corporate Technology

Our mission

Shaping the future with a passion for

research, technology and innovation:

This is the mission of Corporate

Technology (CT).

Unrestricted © Siemens AG 2017

March 2017 Page 8 Corporate Technology

Our focal points

Corporate Technology contributes to the

Company’s success in many ways,

including technology and innovation

strategy, research and development,

cooperation with universities, intellectual

property and business excellence.

Unrestricted © Siemens AG 2017

March 2017 Page 9 Corporate Technology

Our focal points –

Corporate Technology at a glance

Corporate Technology (CT) CTO – Roland Busch

Research in Digitalization

and Automation

Research and pre-development work

covering all Siemens-relevant areas

in digitalization and automation

Research in Energy

and Electronics

Research and pre-development work

covering all Siemens-relevant areas

in energy/electrification, electronics,

new materials and manufacturing

methods

Technology and

Innovation Management

‒ Siemens’ and CT’s technology

and innovation agenda

‒ Standardization and technical

compliance

‒ Provision of technical publications

University Relations

‒ Management of the research

partner portfolio

‒ Engagement management with

top research partner

Business Excellence and

Quality Management

‒ Siemens Operating Model:

excellence in PLM, SCM, project

business and service

‒ Quality management

Development

and Digital Platforms

‒ Software, firmware, and hardware

engineering

‒ Horizontal and vertical product

and system integration

Corporate

Intellectual Property

‒ Protection and defense of

intellectual property (IP)

‒ IP licensing & commercialization

‒ Trademark protection

Unrestricted © Siemens AG 2017

March 2017 Page 10 Corporate Technology

Our focal points: Innovation strategy –

Shaping Siemens’ technology and innovation agenda

‒ We analyze trends and novel

technologies, develop scenarios for

our core markets and recommend

adjustments to the Company’s

innovation and technology agenda

‒ We assess Siemens’ innovative

power and the impact of disruptive

changes in the spirit of Joseph

Schumpeter

‒ We elaborate and represent the

Company’s position in matters of

research policy

‒ We coordinate Siemens’

standardization activities across

Divisions and regions, and ensure

compliance with technical law

‒ We provide the R&D community at

Siemens with technical publications

Technology

and

innovation

portfolio

Retropolation Potential of new markets, customer requirements, technologies, business effects

Trends Society, technology and research, economy, environment, politics

Extrapolation Products and solutions, Technologies, customer requirements

Scenarios

Markets

Siemens business

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March 2017 Page 11 Corporate Technology

Our focal points: Digitalization and automation –

Securing and extending technology leadership

eAircraft

Sensing and monitoring

Data analytics and data

management

Software and systems

IT security

Simulation- driven virtual engineering

Autonomous systems

Human- machine

collaboration

Industrial Internet of

Things

‒ We connect the real and virtual worlds. We continuously

improve our ability to translate signals from field

sensors into meaningful data, to enhance these data

with design information and to provide valuable

information to system designers and operators.

‒ Such digital services offer our customers higher or even

guaranteed availability, among other things

‒ Handling data in a secure and confidential manner

is a major prerequisite for this

‒ A digital twin of a real-world system throughout its

lifecycle allows us to simulate and optimize it before and

after commissioning. This reduces the need for time-

consuming and costly prototype construction

‒ Autonomous systems solve complex tasks in uncertain

environments and safely interact with humans

‒ The industrial Internet of Things spans all stages of

industrial production. Products and systems generate

data, communicate with each other, and acquire new

functionalities even when already in use

Unrestricted © Siemens AG 2017

March 2017 Page 12 Corporate Technology

Our focal points: Electrification and electronics –

Securing our traditional businesses and tackling new markets

‒ Increasing in system expertise

to understand requirements for future

energy supply

‒ Ensuring innovations in traditional

fields, e.g. power electronics

‒ Expanding in decentralized power

generation

‒ Developing of (chemical) energy

storage systems

‒ Conducting research into innovative

materials and manufacturing

technologies

Future energy

systems

Power

electronics

and

mechatronics

Electrification

of mobility

Storage-

and power-to-X-

technologies

Advanced

materials

Future

manufacturing

Research

in Energy and

Electronics

Unrestricted © Siemens AG 2017

March 2017 Page 13 Corporate Technology

Our focal points: University relations –

Overcoming groupthink and tapping potential

‒ We network with leading universities

and non-university research institutes

around the world

‒ With Open Innovation, we strengthen

Siemens’ innovative power and

tap the potential of a networked,

open company

‒ We link the industrial and academic

worlds and thus promote intensive

research and recruiting activities

‒ Our collaboration with nine top

universities and the “Centers of

Knowledge Interchange” (CKIs)

that we set up there exemplify

this effort

UC Berkeley

DTU Copenhagen

RWTH Aachen

FAU Erlangen-Nuremberg

TU Munich

TU Berlin

Tsinghua University

Georgia Tech TU Graz

16 Principal partner universities 9 CKI

universities

Unrestricted © Siemens AG 2017

March 2017 Page 14 Corporate Technology

Our focal points: Digitalization –

Developing the highest quality software and system

‒ We are a center of competence for

HW and SW engineering that

consistently offers development

services on a global scale, and at

best cost, to our Siemens-internal

customers

‒ ~90% of our resources are located

near-shore (Eastern Europe) or off-

shore (India, China)

‒ We support Siemens’ efforts to drive

digitalization. As part of this work, we

are playing a key role in the

development of MindSphere,

Siemens’ operating system for the

industrial Internet of Things (IoT) >20% of software developments at Siemens

>375 projects per year

~90% of our resources

eAircraft

Unrestricted © Siemens AG 2017

March 2017 Page 15 Corporate Technology

Our focal points: Patent and trademark coverage –

Protecting inventions and defending intellectual patent rights

1 Employee figures: As of September 30, 2016

‒ Ideas are turned into inventions that

give Siemens a competitive edge

‒ We ensure that these inventions get a

high level of patent protection

‒ We have around 400 experts1 who

manage Siemens’ intellectual

property: They register, establish and

market trademark rights

3,500 patent applications in fiscal 2016 – 16 per work day

7,500 invention disclosures in fiscal 2016 – 34 per work day

59,800 patents held in fiscal 2016

400 intellectual property experts worldwide1

Unrestricted © Siemens AG 2017

March 2017 Page 16 Corporate Technology

Our focal points: Business excellence –

Becoming faster, more efficient and more agile

1 Lean development and engineering (LDE) experts without R&D project manager and software experts

‒ Excellent business practices make

Siemens faster, more agile and more

efficient

‒ The five functional work streams of

the Siemens Operating Model

promote practices that are relevant to

all parts of Siemens. CT Business

Excellence plays a supporting and

moderating role

‒ We help improve the value chain in all

types of business – be it product

business, project business or service

‒ We strive to foster Siemens’ ability

and courage to systematically

implement changes

Functions

Collaboration with the

business units

Framework

Siemens

Operating Model

~35 certified LDE experts1

~640 certified experts for the Siemens Production System (SPS)

~180 participants in additive manufacturing trainings courses

~5,300 certified project managers

Unrestricted © Siemens AG 2017

March 2017 Page 17 Corporate Technology

Concrete examples of our work

With our innovations and technologies,

we set standards for existing and future

markets, so that Siemens can remain

successful over the long term.

Concrete examples show how Corporate

Technology contributes to this.

Unrestricted © Siemens AG 2017

March 2017 Page 18 Corporate Technology

Concrete examples of our work –

The future of the energy system and electrically powered flight

Thanks to complex simulation models, we can analyze for the first

time how power will be generated, transmitted and distributed

in a future when 60 percent to 80 percent will come from millions of

decentralized regenerative energy sources – and what this mean

for the energy markets.

Flight with hybrid-electric drives uses 25 percent less fuel and

significantly reduces CO2 emissions and aircraft noise. That is why

we have developed an electric motor with a weight of 50 kilograms

and a continuous output of 260 kilowatts. In a partnership with Airbus,

we are working to enable planes designed for 60 to 90 passengers to

fly with hybrid-electric propulsion systems – a revolution in aviation.

Simulating the future

energy system

World-record motor

for aircraft

Further information is available here: Pictures of the Future Further information is available here: Pictures of the Future

Unrestricted © Siemens AG 2017

March 2017 Page 19 Corporate Technology

Concrete examples of our work –

Core elements for the success of digitalization

We have extended the concept of the Internet of Things for industrial

applications: A digitally networked world full of devices that are

connected to the Internet impacts how we control factories

or critical infrastructures. The industrial Internet of Things makes

these interactions reliable, safe and durable. In addition, it can be

used to “digitally toughen up” existing plants.

The next step in 3D printing could be something called mobile

manufacturing. Siemens researchers in Princeton, New Jersey have

developed spider-like prototype robots that can work collaboratively

to print structures and surfaces, thus potentially accelerating

production of large-scale, complex structures such as the fuselages

of planes and the hulls of ships.

Intelligent industrial

networking via Internet

Siemens robotics labs

in Princeton

Further information is available here: Pictures of the Future Further information is available here: Pictures of the Future

Unrestricted © Siemens AG 2017

March 2017 Page 20 Corporate Technology

Concrete examples of our work –

Spare parts you can print yourself and networked batteries

Siemens has achieved a breakthrough in the 3D printing of gas

turbine blades. For the first time, a team of experts has full-load

tested gas turbine blades that were entirely produced using additive

manufacturing. Over the course of several months, Siemens

engineers from Lincoln, Berlin and Finspong worked with experts

from Materials Solutions to optimize the gas turbine blades and

their production.

Storage technologies are vital if both the transition to a new energy

mix and global decarbonization are to succeed. As more and more

electricity from fluctuating renewable sources flows through power

lines, grids will have to become increasingly flexible to prevent

blackouts. Researchers from Siemens Corporate Technology are

developing solutions.

Breakthrough with 3D

printed gas turbine

blades

Developing a mix of

energy storage

solutions

Further information is available here: Pictures of the Future Further information is available here: Pictures of the Future

Unrestricted © Siemens AG 2017

March 2017 Page 21 Corporate Technology

Siemens Corporate Technology –

Contact and further information

Siemens AG

Corporate Technology

Otto-Hahn-Ring 6

81739 Munich

Germany

Internet

siemens.com/corporate-technology

Intranet

intranet.ct.siemens.com