Unrestricted © Siemens AG 2014. All rights reserved. siemens.com/answers
Inhouse project developmentOpportunities and limitations
Siemens Real Estate | Dr. Zsolt Sluitner | 03.07.2014
June 2014
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Siemens – A global playerWith sales of 80 billion EUR and a workforce of 360,000Siemens Real Estate is part of the Siemens Group
Energy Industry
Healthcare Infrastructure & Cities
Cross Sector Units
Financial Services Siemens Real Estate
June 2014
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Employees Area (in millions of square meters)All figures refer to continuing activities; as of September, 30th 2013
Siemens is represented in more than 200 countriesSRE is in charge of the real estate portfolio of 15.8 million m²
Americas Asia, Australia
Germany
Europe, CIS, Africa, MiddleEast (excl. Germany)
2.2
14%
64,000
18%
4.3
27%
102,000
28%
3.5
22%
78,000
22%
5.8
37%
118,000
33%
June 2014
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Siemens Real EstateAt a glance
2013
Sales (in billion EURO)
Net income (in million EURO)
Employees (incl. restaurant & services)
Assets under Management(in billion EURO)
Land area (in million m2)
Building space (in million m2)
2.5
171
approx. 3,708
6.5
29.81)
15.8
1) Without leased/without received hereditary building right total site area
June 2014
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Our Mandate and MissionSiemens Real Estate stands for …
… uniform and comprehensive real estatemanagement at Siemens
… optimized use of resources
… support for the Sectors and Divisions indeveloping their market position usingcustom real estate strategies and solutions
"SRE drives Siemens' profitability asa trusted business partner through realestate and related services"
June 2014
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Corporate Real EstateThe full range of activities
Strategic portfolio management
Location concepts andsite development
Sustainability strategy
Working concepts
Asset and property management
Purchase/sale of space
Planning and construction of officesand production facilities
Site selection
Facility management
Financing concepts
Leasing and letting
June 2014
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Make or buy decision is driven by financial andcorporate aspects
Organic vs. un-organic growth,consolidation szenario
Make
Own development
Buy
Investor
Financials
Cash Balancing
Capitalspending
Proceedsfrom disposals
IBIT Net Cash Net Cash (disc.)
Additional criteria
Siemensbusiness outlook
Real estatemarket
Customerrequirements
others
Maturity of market,supply and demand
Flexibility, total occupancycosts, low cost products
Land use rights restrictions, compliance,quality and capacity of resources
Positive corporate business case
June 2014
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Investment volume more than 1 billion € overthree years
450′0500′0
Space handedover to customer
Number ofcompleted projects
210.0 m²
21 19 19
217.0 m² 249.0 m²
11
96.0 m²
Capex newconstruction in €
Overview new construction (Make)
1)
1) Capital Expenditures for construction
FY 2012 FY 2013 FY 2014 FY 2015 Outlook
June 2014
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Construction projects worldwideOffice
Rio de Janeiro,BrasilR&D CenterCustomer Energy SectorSpace 8,300 m²
Masdar City,Abu Dhabi, UAEOffice building fit-outCustomer Regional Company UAESpace 12,000 m²
Shanghai,ChinaOffice site expansionCustomer Regional Company CHNSpace 17,500 m²
Oslo, NorwayOffice building (built-to-suit)Customer Regional Company
NorwaySpace 18,000 m²
The Crystal, London, UKGlobal Urban Sustainability CenterCustomer Infrastructure and
Cities SectorSpace 6,300 m²
Forchheim, GermanyHealthcare global HQ(office and development)Customer Healthcare SectorSpace 66,000 m²
Make
MakeMakeBuy
MakeBuy
June 2014
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Construction projects worldwideIndustrial
Aalborg,DenmarkPlant expansionCustomer Energy SectorSpace 20,500 m²
Krefeld,GermanyLogistics center expansionCustomer Infrastructure and CitiesSpace 25,000 m²
Berlin, GermanyNew build, production hallsCustomer Energy SectorSpace 22,000 m²
Yizheng, ChinaNew build, motor production (M3factory)Customer Industry SectorSpace 87,000 m²
Khalif, Saudi ArabiaNew build, manufacturing facilityCustomer Energy SectorSpace 13,000 m²
St. Petersburg, RussiaNew build, manufacturing facility gasturbines, officeCustomer Energy SectorSpace 21,200 m²
Make Buy
MakeMakeMake
Make
June 2014
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Optimization of resourcesMake or buy
Governance/Strategy
Execution
Make
Buy
• Clear allocation of responsibility
• One „Corporate Memory“ - global real estate expertise
• One Knowledge Hub for concept design, programming, budgeting
• Optimal use of resources allied with local market knowledge
• Rapid model prototyping run by experts
• Cost accuracy
• Contract strategy via selected partners
• Local resources focus on Project Management
• Local resources involvement from project start
• Local expertise ensured from project start
June 2014
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Construction excellence
“Serial construction”&
Lean management,planning andconstruction
Approach
§ BlueprintsStandardized modular designToolbox§ Selected partners
§ Strategic procurement
§ Implementation concept
CAPEX 1) OPEX 2)
– 15 %
– 5 %
Time
– 20 %
Goals
1) Capital Expenditures for construction 2) Operational Expenditures p.a.
June 2014
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Standard Office and Industrial Types
A advanced
Siemens HeadquartersRepresentative headquarters> 2.500 € / m²
B business
ForchheimPrimarily administrative functionsapprox. 1.400 € / m²
C compact
ChengduProduction & research-related officesapprox. 1.000 € / m²
Heavymachining
Electricalproducts Railways Wind powerMachining
OFFICE TYPES A, B, Cbased on market levels
FACTORY TYPES 1 – 5based on production process requirements
1 2 3 4 5
1) Investment costs (cost groups 300 + 400)
1) 1)1)
June 2014
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New Headquarters Siemens Group, Munich
View “Altstadtring“2014 2015Kalenderjahre
View “Atrium“
Key DataSiemens HQ 2010 Siemens HQ 2016
Construction site
June 2014
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Siemens Campus ErlangenInvestment volume of approx. 500 million €
Vorbereitung
Modul j - kModul l - nWohnen o
Option p
>> Projektvorbereitung: ab 2013>> Baubeginn: 2016
2013 2016 2022 2025
Modular development and realizationKey Data
Office space reduction and occupancy costs
as is new
-30%
Space reduction(m²)
new
-11%
Occupancy costs(€)
as is
2014 20152013 2030
Timeline
June 2014
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“Inhouse project development meansbridging customer requirements withthe real estate market"