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Industry Sector

Industry Automation Division

Background

Continuously improving the competitive edge of industries

Industrial automation looks back on a long tradition at Siemens, which launched its first “Simatic” production control system in 1958. Today, the Siemens Industry Automation Division supplied customers in the manufacturing, process and hybrid industries with both standard products and highly specialized solutions. Employing a workforce of around 33,000 as part of the Siemens Industry Sector, the Division generated revenues of 7.46 billion euro in fiscal 2011. In more than 30 production plants around the globe, it manufactures tens of thousands of components, systems and solutions for industrial automation: Control components, power supply systems, networking solutions, measuring and sensor applications and water and wastewater treatment. This broad competence base allows Siemens to supply automation solutions across the complete production process – from input logistics through development and manufacture to packaging and output

logistics. Siemens also offers trade-specific solutions for a wide range of industrial sectors such as automotive, solar or food and beverage. In addition, a specialized business unit provides water and wastewater treatment solutions for municipal and industrial use. Alongside its role as a hardware supplier, software is emerging as an ever more important aspect of the Industry Automation Division’s work. Using software applications, products, machines and complete production plants can be planned and developed on a virtual basis down to the smallest detail. This virtual approach helps eliminate sources of error at an early stage, thus driving down development and manufacturing costs. An integral

information structure on the customer’s premises ensures that data generated in planning, development, production, servicing and aftersales support is centrally logged and utilized in a continuous process of product development.

“When it comes to automation technology, industrial controls and industrial software, Siemens is among the world’s leading suppliers today,” according to Siemens Industry Automation Division CEP Anton S. Huber. “Our strength lies in our innovative drive. By continuing to invest in

innovation and development, and by the strategic expansion of our portfolio, we have achieved a technological leadership position. Siemens covers the entire industry automation spectrum and is

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2 / 6 two of the focal challenges posed by its customers. First - the increasing variety and complexity of products. Now more than ever, consumers are demanding individualized products in terms of their design, equipment and technical features – without compromising on quality and with the lowest possible price tag. Consequently, development and production need to be both flexible and efficient. Second - the efficiency in setting up production. Manufacturers are required to install, operate and convert their plant and machinery under enormous time and cost pressures. “Our product portfolio helps customers increase their productivity while improving flexibility and

efficiency,” explains Huber. “By doing this, we improve their competitive standing and reduce the time to market for their products. This is something our customers appreciate.” In fact, no other supplier can claim such a comprehensive energy efficiency and energy management portfolio. With intelligent hardware and software solutions as well as consultancy and other services, Siemens provides its customers with the opportunity to make energy resources more transparent, calculate potential for savings and optimize energy input. The Siemens Industry Automation Division develops and markets products for the fields of production automation, process automation and industrial software.

Comprehensive production automation portfolio

The Division's production automation portfolio benefits companies in a variety of industries such as machinery, automotive and high-tech electronics with components such as automation systems, power supply units and controls to ensure a reliable power supply and monitoring of machines. Added to this are solutions for machine safety, machine and plant operation (human machine interface), and industrial communication - in other words networking, control and data exchange between individual plant components. The nerve center of any automation control solution is the Simatic programmable logic controller (PLC). As a result of its continuous optimization and the development of an extensive range of supplementary modules, Simatic has grown to become the world’s most frequently sold system of its kind. Today, one in every three PLC systems sold is from Siemens. The majority of the company’s power supply units are grouped under the Sitop label, the comprehensive range of industrial controls marketed using the product name Sirius. In the field of industrial communication, Siemens offers a broad-based portfolio of cabling systems and active communication components complying to the leading industrial Ethernet variant, the Profibus and Profinet standard. The industrial equipment manufacturer also supplies components and systems for wireless networking, for instance using Industrial WLAN. The Industry Automation Division also supplies solutions for industrial identification using technologies such as RFID. The solutions supplied by Siemens include data carriers, antennas and reading devices, which ensure that the whereabouts of any components or product can be seamlessly traced over the entire production process through to delivery to the customer – even under adverse production conditions and with worldwide supply chains.

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Expert partner in process automation

Process automation also encompasses solutions for a variety of different fields, such as water and environmental technology, the petrochemical and chemical industries, oil and gas as well as pharmaceuticals and biosciences. Sensor and control technology products are also used in the food and beverage industry and in the fields of cement, stone and earth and mining. They are aimed at addressing the demands of process manufacture involving the creation of products by combining and processing individual ingredients, for instance medicines, soft drinks or bio fuels. To meet such needs, Siemens supplies process control systems such as Simatic PCS7 which monitor and control the entire production flow. As these are connected to precise process and analytical instruments, the Siemens portfolio also includes various sensors and controllers such as the Sitrans product series. Overall, Siemens customers are supplied with components for the measurement of pressure conditions, temperatures, flow volumes or levels, as well as weighing and batching systems and the associated controllers and process recorders. Completing the Industry Automation Division portfolio are instruments such as process gas chromatographs which are used in fields such as quality assurance. Particularly in the process industries with their

complex manufacturing procedures, the technologies used are required to reconcile extreme quality and safety requirements with economical operation. The Process Automation Division addresses these demands with a range of particularly reliable and durable products. A glance at the customer reference list testifies to the high regard in which Siemens is held as a competent process automation supplier: the process control system Simatic PSC7 alone is used in over 10,000 applications around the globe. Users include such prestigious corporations as Bayer, DuPont and SAB Miller.

Leading supplier of water and wastewater technology for municipal and industrial use

Particular importance is placed on water – scarcity, quality, and cost. The Siemens Industry Automation Division has a dedicated business unit that develops drinking water and wastewater technologies to help manage the world’s water resources more effectively. These technologies are used in more than 200,000 installations, providing water supplies to millions of people and

thousands of companies around the world. With the support of its own research center in Singapore and the benefit of many years of experience in automation technology, Siemens is setting the pace within the industry to further develop and industrialize water technology.

Municipal and industrial customers rely on the company’s comprehensive expertise in sustainable solutions that reduce energy consumption, recycle/reuse water, minimize waste, and reduce life-cycle costs. With a broad portfolio ranging from biosolids management and energy reduction technologies to filtration and purification treatment systems, Siemens is better positioned than almost any other supplier to provide single-source solutions, often equipped with integrated

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4 / 6 More than 90 percent of the Fortune 500 manufacturing companies, including approximately 100,000 industrial customers, use water or wastewater treatment technologies from Siemens. The company’s high-purity technology helps industry and manufacturers meet specific water quality requirements to ensure consistent processes and production. Siemens also helps industry meet ever-increasing wastewater regulations, while improving efficiency and reducing waste. Siemens’ membrane filtration and conventional technologies treat more than 9.5 billion liters of water per day for water reuse and reclamation, helping reduce the demand on potable water sources worldwide.

Industrial software: a growth market

The industry software segment development has been particularly dynamic. As product

development and production have become increasingly digitized, demand for applications for the integrated and reliable control of processes and equipment has grown. The abbreviation MES, for Manufacturing Execution System, is representative of this concept. With its Simatic IT software, Siemens offers a system capable of collating and displaying data from the entire production process, and guaranteeing cohesive monitoring and control. Another field of application in which software is gaining significance is the planning, development, manufacture and service of products – summarized under the heading Product Lifecycle Management or PLM. Siemens PLM

Software’s portfolio delivers a high definition decision support platform for companies to develop and support their increasingly complex products. Siemens’ NX software is among industry’s leading applications for detailed 3D product development models. This CAD/CAM/CAE (Computer Aided Design/Computer Aided Manufacturing/Computer Aided Engineering) software allows engineers to create their products virtually – from housing surfaces to complex inner workings, down to the smallest bolt and internal wiring. The digital design process also enables the simulation and testing of functional features and characteristics without the presents of actual physical prototypes. The software actually goes another step further: It allows digital design not just of the product, but also of the machines required for manufacturing the product. The functional scope extends from the complete design through to simulation of the machine in operation. The result: Shorter product development cycles and a decreased demand for actual physical

prototypes.

PLM software also plays an important role regarding the use of composite materials like carbon fiber components. With their unique combination of low weight, high strength, and durability,

composite structures are already used extensively in the aerospace industry and for rotor blades of wind power turbines and will continue to experience more widespread use in the automotive and marine industries. With the acquisition of Vistagy in 2011, Siemens has become the only company worldwide to support the whole value creation for carbon fiber components with its software tools – from product definition and development to manufacturing and service.

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The principle of virtual planning can also be applied to the whole of the production process. Siemens’ Tecnomatix software is designed to permit the virtual layout and simulation of the

manufacturing process as a whole. Using this process, known as digital manufacturing, companies can plan the necessary production environment while the product itself is still in the development stage. Using a digitally created model, as well as creating virtual production facilities, entire logistical processes and production output can be simulated and optimized. Ultimately, this approach saves both time and costs on every level: Design times for factories from the initial concept through to assembly are driven down by as much as 50 percent compared to conventional methods, throughput times are reduced by between 20 to 60 percent, and material handling costs can be cut by up to 70 percent by optimizing factory layouts during the production planning phase. This application is already used extensively in the automotive and aerospace industries.

Siemens also offers a number of software solutions for the process industries with its plant engineering software Comos. These applications permit whole production plants including all the pipework, tanks and process instruments to be planned as 3D models and simulated in operation.

The platform for data management and exchange between the individual Siemens software solutions and those of other manufacturers is the Teamcenter application. The Siemens

Teamcenter software connects engineering teams dispersed over several locations, or companies and their suppliers, thus creating a joint virtual platform on which to share and manage product, process and manufacturing data – a process which is already standard practice for development work at Siemens. Data management in this context encompasses both control of the entire virtual development and product planning processes, and also coordination and synchronization of the teams involved.

The TIA Portal – engineering from a single mold

With the unveiling of Totally Integrated Automation (TIA) back in 1996, Siemens introduced a concept whose aim was to make all the components and systems used in production mutually compatible and addressable throughout. The software grew in significance with the advent of ever more advanced networking and the digitization of automation technology. While engineering applications allowed the configuration and engineering of ever greater areas of production, this placed greater demands on systems and created ever greater complexity. With the development of the TIA portal, Siemens took a major step towards improved efficiency and greater user

convenience. For the first time, the engineering framework provides users with a standardized user interface and an overarching operating concept for every application. In developing this software, Siemens studied typical applications over a period of several years, analyzing and evaluating customer requirements around the world. Its aim in developing the TIA Portal was to supply

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6 / 6 devices and field buses can now be configured using a single common device and network editor, and an over-arching application also exists within the portal for control systems and HMI devices. The portal permits standardized project navigation, library concepts, data storage, project filing, diagnosis and online functions, providing the user with a common framework application and a clear layout of the entire automation project for rapid, intuitive and effective processing. Initial applications, such as the manufacturing engineering software Simatic Step 7 V11 and Simatic WinCC V11, have already been implemented as constituent elements of the TIA Portal. In the future, the TIA Portal will provide a platform for all engineering systems through to the project engineering, programming and commissioning of the automation devices, drive systems and controls of the Siemens Totally Integrated Automation spectrum.

Status: March 2012

The Siemens Industry Sector (Erlangen, Germany) is the world’s leading supplier of innovative and environmentally friendly products and solutions for industrial customers. With end-to-end automation technology and industrial software, solid vertical-market expertise, and technology-based services, the Sector enhances its customers’ productivity, efficiency, and flexibility. With a global workforce of more than 100,000 employees, the Industry Sector comprises the Divisions Industry Automation, Drive Technologies and Customer Services as well as the Business Unit Metals Technologies. For more information, visit http://www.siemens.com/industry

Media Relations: Reiner Schoenrock

Telefon: +49 911 895-7999

E-Mail: reiner.schoenrock@siemens.com Siemens AG

Industry Sector - Industry Automation Division Gleiwitzerstr. 555, 90475 Nürnberg

Evelyne Kadel

Telefon: +49 173 5649708

E-Mail: evelyne.kadel@siemens.com Siemens AG

Industry Sector - Industry Automation Division Klaus-Bungert-Str. 6, 40468 Düsseldorf

Gerhard Stauss

Telefon: +49 911 895-7945

E-Mail: gerhard.stauss@siemens.com Siemens AG

Industry Sector - Industry Automation Division Gleiwitzerstr. 555, 90475 Nürnberg

Peter Jefimiec

Telefon: +49 911 895-7975

E-Mail: peter.jefimiec@siemens.com Siemens AG

Industry Sector - Industry Automation Division Gleiwitzerstr. 555, 90475 Nürnberg

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