May 26, 2011, Strategic Planner Circle Innovation Management at Siemens Building Technologies Division Lucas Schmid, Head of Strategy

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May 26, 2011, Strategic Planner Circle

Innovation Management at Siemens

Building Technologies Division

(2)

Industry Sector / BT

Areas of activity Building Technologies

 Siemens Building Technologies

Overview

 Innovation @ Siemens BT

Innovation Process

Key aspects of Innovation @BT

 Manage the early phases of Innovation

 Innovation strategy for emerging markets

Page 2 Industry Sector / BT

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Siemens Organisation

Sectors & Divisions

Divisions

Sector

Ener

gy

In

du

str

y

He

althca

re

 Industry Automation

 Drive Technologies

 Building Technologies

 Lighting (Osram)

 Industry Solutions

 Mobility

 Fossil Power Generation

 Renewable Energy

 Oil & Gas

 Energy Service

 Power Transmission

 Power Distribution

 Imaging & IT

 Workflow & Solutions

 Diagnostics

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Building Technologies

Key figures

New orders

6”910’

7”132’

+3.2%

Revenue

7”007’

6”903’

-1.5%

Profit

288’

401’

+39%

Employees

42’575

42’221

-0.8%

FY2009

FY2010

54%

_36%

Revenue

Employees

Europe

CIS, Africa,

Middle East

56%

Europe

CIS, Africa,

Middle East

54%

Americas

36%

Americas

34%

Asia 11%

Asia 8%

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What is the portfolio of our business units?

LV

Low Voltage

Distribution

CPS

Control Products

& Systems

BAU

Building

Automation

Energy efficiency solutions Efficiency monitoring Green consulting Building performance optimization Energy saving Energy saving performance contracting Building automation systems Standard systems / standard controllers Thermostats Sensors

Valves and actuators

Damper actuators

Variable speed drives

Switchboards and busbar trunking systems

Distribution boards

Circuit breakers and switch disconnectors

Low-voltage circuit protection

Building management systems

Switches and socket outlets

FS

Fire Safety &

Security Products

Fire alarm systems

Evacuation systems Danger management systems Automatic extinguishing Life cycle management Maintenance

SES

Security

Solutions

Intrusion & access control solutions

Break-in detection

Video management solutions

Command & control systems

Danger management systems

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Page 6

BT offers a unique portfolio

Everything to drive efficient and intelligent buildings

Page 6 Water Light Energy Power People flow Alarms Video streams Air Low voltage Fire HVAC Integrated building solutions Energy Management Security Danger Management Engineering tools Performance contracting Security services

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Building Technologies

More than 400 offices worldwide

-BT Offices

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BT Global Management Conference 2011 Johannes Milde Building Technologies/CEO Page 8

BT delivers real value to its customers

Strong position based on a compelling value propositions

“We want to be the preferred partner for energy efficient, safe and secure

building infrastructure.”

FS

SES

LV

BAU

CPS

LV

Comfort

Safety &

Security

Energy

Efficiency

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Our offering for low voltage distribution

Zurück Switches and socket outlets Energy grid Energy trading Management Station Switchboards Switches and socket outlets Power supply Short circuit / Overload protection

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Our offering for building automation

Zurück Management Station Energy Management Heating, ventilation, climate Room management:

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Our offering for security

Zurück Access control Biometrics Intervention forces Alarming Management Station Intervention center Video surveillance Intrusion detection Perimeter protection

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Our offering for fire safety

Zurück Intervention forces Evacuation Alarming Fire and smoke detection Management Station Intervention center Extinguishing (dry, wet)

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Innovation Management within Process

Landscape

Product life cycle management

Strategy development process

Implementation

of innovations

Generating and

selecting ideas

Idea management

process

Product portfolio

Management

Product development

Process (PEP)

SCM process

CRM process

Support processes

Pre development

process

Innovation

review

Innovation

review

Safety & Security Energy Efficiency

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Value proposition teams drive new ideas

Page 14

Goal for emerging markets

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2a

2b

Smoke is detected, dampers are activated

1

Example

Danger Management

Elevators are automatically

deactivated

People are safely guided by

voice, displays and lights to the stairs

People are directed to the

appropriate and safe exits

5

Detailed information (location, type of fire, toxic gases, temperature, etc.) about emergency incident is sent to

fire brigades for best

preparation on mission

3

Detailed information about people remaining in the building is available to the fire brigade

4

System delivers detailed information for post incident

analysis

6

Fire brigade is advised

2c

2 B

II

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Solar panels

BMS

BAS*

Electricity storage in the building Building@Smart Grid E-car as temporary power storage Energy trading Energy Management Thermal energy storage in the building Lighting natural/artificial Heating, Cooling, Air-Conditioning

Example

Energy Management

Load management within the building in order to avoid peaks

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Emerging markets are a key growth area for

Siemens

M1 M2 M4 M3 Segmentation M1 High-end M2 M3 Mid-priced M4 Low-priced

M

ar

ke

ts

Seg

men

tati

o

n

F

or

eac

h

m

ark

et

M4 M3 M1 M2

Market size by segment

BRIC countries & Middle East Further Emerging Markets

Developed markets Emerging Markets

Innovative Excellent

Respon-sible Quality 1) High-end innovations High perfor-mance Ethical & sustain-able Worldwide Siemens quality standards SMART innovations GDP 2009-2015 p.a.

(share of abs. growth)

+2.4% p.a. (44%) +3.6% p.a. Global average +4.6% p.a. (16%) +7.1% p.a. (40%)

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Goal for emerging markets

Innovation strategy for emerging markets

Achieve top position in Emerging Markets

Expand mid- and low-priced portfolio

locally and globally

Increase local footprint and responsibility

Market share

BRIC Global

Develop entry level products /solutions

according to SMART principals:

Simple, Maintenance friendly, Affordable,

Reliable and Timely to-market

Market size Market share

M4 M3 M2 M1 _PM Headcount R&D Headcount 12 10 10 12 10 12 10 12 Sourcing External PVO Manufacturing Headcount

May 26, 2011, Strategic Planner Circle Innovation Management at Siemens Building Technologies Division Lucas Schmid, Head of Strategy