Pre-Press Conference – Innotrans 2018

Pre-Press Conference – InnoTrans 2018

June 13, 2018 | Sabrina Soussan and Michael Peter

Unrestricted © Siemens AG 2018 siemens.com/mobility Global megatrends lead to increased traffic volumes

Cities will grow Travel distance increases

km/lifetime

By 2050: Worldwide, Since 1965: In the UK, additional 2.5 bn the distance a person travels people will live in cities has increased by 70%

United Nations, World Urbanization Prospects: The 2018 Revision Department of Transport, England Transport stats 1965 – 2015

Unrestricted © Siemens AG 2018 Page 2 June 2018 Mobility Division In an era of interconnected and digitalized mobility, travel behavior is changing

Long Public Car Bike Walk Car Bike Taxi distance bus Transport Sharing Sharing Carpooling Flight

One single interface

Unrestricted © Siemens AG 2018 Page 3 June 2018 Mobility Division In the face of new competition, transport operators need to expand their offering

Digital Experience Last Mile Solution

OperatorOperator

Reliability Affordable Prices

Unrestricted © Siemens AG 2018 Page 4 June 2018 Mobility Division What does this mean for railway vehicles …

… digital ride experience and enhanced passenger information systems

Unrestricted © Siemens AG 2018 Page 5 June 2018 Mobility Division What does this mean for operations …

… they become automated

Unrestricted © Siemens AG 2018 Page 6 June 2018 Mobility Division What does this mean for infrastructure …

Relay IP based

… less cabling and hardware

Unrestricted © Siemens AG 2018 Page 7 June 2018 Mobility Division With digitalization, we enable mobility operators worldwide to …

… make trains and … increase value … enhance …guarantee infrastructure sustainably passenger availability intelligent over the entire experience lifecycle

Unrestricted © Siemens AG 2018 Page 8 June 2018 MobilityDivision DivisionMobility Our industry is consolidating

Revenue of rail activities (€ bn) Last available financial year5 Ongoing industry consolidation over recent years … 26.8 Year1 Acquirer Target

2018 Wabtec (pending) GE Transportation (pending) 2016 Wabtec Faiveley 2015 Stadler Vossloh Lokomotiven

15.4 2015 Hitachi Ansaldo STS & Breda 2014 CRRC CNR and CSR 2014 Alstom GE Signalling 2012 Siemens Invensys Rail 8.1 7.3 6.8 4.4 4.3 4.0 3.4 3.2 2.0 1.8 1.5 1.0 1.0 0.9 0.8 0.4

CRRC Siemens Siemens2 Alstom5 Bom- CRSC Hitachi Cater- GE Wabtec3 Stadler Thales CAF Hyundai Kawasaki Vossloh Pesa Talgo +Alstom4 bardier pillar Rotem

Rank second in mobility industry

1 Announcement date | 2 Including revenue related to Rail Traction Business currently reported in Process Industries and Drives | 3 Pro-forma including Faiveley 4 Transaction still pending | 5 For Alstom FY2017

Unrestricted © Siemens AG 2018 Page 9 June 2018 Mobility Division „We are Siemens Mobility“

VIDEO

Unrestricted © Siemens AG 2018 Page 10 June 2018 Mobility Division We look back at an extraordinary journey

2018 2013 Sinet: End-to-end 1896 decentralized interlocking Subway architecture in Budapest

1882 2012 The first electric trolley bus Takeover of 1982 in the world – Werner von Invensys Rail Completely Siemens’ “Elektromote” 1957 Central interlocking center, Frankfurt am Main, electronic largest pushbutton relays interlocking center in Europe interlocking center 2000 1879 Traffic management Siemens presents the first center, Berlin electric train in the world with an external power supply 1948 1980 1991 Progress in interlocking technology, Elevated Intercity 1856 first geographical interlocking system railway, Express 2017 Railway in Düsseldorf-Derendorf Dortmund Takeover of telegraph with (ICE) leading double-T 1924 software provider armature Siemens sets up Germany’s first HACON traffic signal on Potsdamer Platz in Berlin 1965 1st electronic 2012 1915 traffic control smartGuard Web- Riksgränsbahn – Electrification of Computer based mobile traffic 1847 Europe’s northernmost railway line in Europe control center First alarm 1999 completed (Berlin) bell system Acquisition of majority stake in Krauss-Maffei Verkehrstechnik GmbH

1965 Electric 1992 locomotive Siemens AG Austria acquires 26% 1930 E 03 of Simmering-Graz-Pauker- Multi-purpose Verkehrstechnik (SGP-VT) electric 1989 1902 locomotive E 44 Opening of Germany’s first Acquisition of majority stake 1881 in Duewag AG First electric elevated railway and streetcar subway in Berlin in Lichterfelde

Unrestricted © Siemens AG 2018 Page 11 June 2018 Mobility Division We look back at an extraordinary journey

2018 2013 1896 Sinet: End-to-end Subway in Budapest decentralized interlocking architecture 1882 2012 The first electric trolley bus Takeover of 1982 in the world – Werner von Invensys Rail Completely Siemens’ “Elektromote” 1957 Central interlocking center, Frankfurt am Main, electronic largest pushbutton relays interlocking center in Europe interlocking center 2000 1879 Traffic management Siemens presents the first center, Berlin electric train in the world with an external power supply 1948 1980 1991 Progress in interlocking technology, Elevated Intercity 1856 first geographical interlocking system railway, Express 2017 Railway in Düsseldorf-Derendorf Dortmund Takeover of telegraph with (ICE) leading double-T 1924 software provider armature Siemens sets up Germany’s first HACON traffic signal on Potsdamer Platz in Berlin 1965 1st electronic 2012 1915 traffic control smartGuard Web- Riksgränsbahn – Electrification of Computer based mobile traffic Europe’s northernmost railway line in Europe control center 1847 (Berlin) 1999 completed Acquisition of majority stake in First alarm Krauss-Maffei bell system Verkehrstechnik GmbH 1965 Electric 1992 locomotive Siemens AG Austria acquires 26% 1930 E 03 of Simmering-Graz-Pauker- Multi-purpose Verkehrstechnik (SGP-VT) electric 1989 1902 locomotive E 44 Opening of Germany’s first Acquisition of majority stake 1881 in Duewag AG First electric elevated railway and streetcar subway in Berlin in Lichterfelde

Unrestricted © Siemens AG 2018 Page 12 June 2018 Mobility Division We look back at an extraordinary journey

2018 2013 1896 Sinet: End-to-end Subway in Budapest decentralized interlocking architecture 1882 2012 The first electric trolley bus Takeover of 1982 in the world – Werner von Invensys Rail Completely Siemens’ “Elektromote” 1957 Central interlocking center, Frankfurt am Main, electronic largest pushbutton relays interlocking center in Europe interlocking center 2000 1879 Traffic management Siemens presents the first center, Berlin electric train in the world with 1948 1980 Progress in interlocking technology, Elevated 1991 1856an external power supply first geographical interlocking system railway, Intercity 2017 Railway in Düsseldorf-Derendorf Dortmund Takeover of telegraph with Express leading double-T 1924 (ICE) software provider armature Siemens sets up Germany’s first HACON traffic signal on Potsdamer Platz in Berlin 1965 1st electronic 2012 1915 traffic control smartGuard Web- Riksgränsbahn – Electrification of Computer based mobile traffic Europe’s northernmost railway line in Europe control center 1847 (Berlin) 1999 completed Acquisition of majority stake in First alarm Krauss-Maffei bell system Verkehrstechnik GmbH 1965 Electric 1992 locomotive Siemens AG Austria acquires 26% 1930 E 03 of Simmering-Graz-Pauker- Multi-purpose Verkehrstechnik (SGP-VT) electric 1989 1902 locomotive E 44 Opening of Germany’s first Acquisition of majority stake 1881 in Duewag AG First electric elevated railway and streetcar subway in Berlin in Lichterfelde

Unrestricted © Siemens AG 2018 Page 13 June 2018 Mobility Division We look back at an extraordinary journey

2018 2013 1896 Sinet: End-to-end Subway in Budapest decentralized interlocking architecture 1882 2012 The first electric trolley bus Takeover of 1982 in the world – Werner von Invensys Rail Completely Siemens’ “Elektromote” 1957 Central interlocking center, Frankfurt am Main, electronic largest pushbutton relays interlocking center in Europe interlocking center 2000 1879 Traffic management Siemens presents the first center, Berlin electric train in the world with 1948 1980 Progress in interlocking technology, Elevated 1991 1856an external power supply first geographical interlocking system railway, Intercity 2017 Railway in Düsseldorf-Derendorf Dortmund Takeover of telegraph with Express leading double-T (ICE) software provider armature 1924 HACON Siemens sets up Germany’s first traffic signal on Potsdamer 1965 1st electronic Platz in Berlin 2012 1915 traffic control Riksgränsbahn – Electrification of Computer smartGuard Web- Europe’s northernmost railway line in Europe based mobile traffic 1847 (Berlin) 1999 completed Acquisition of majority stakecontrol in center First alarm Krauss-Maffei bell system Verkehrstechnik GmbH 1965 Electric 1992 locomotive Siemens AG Austria acquires 26% 1930 E 03 of Simmering-Graz-Pauker- Multi-purpose Verkehrstechnik (SGP-VT) electric 1989 1902 locomotive E 44 Opening of Germany’s first Acquisition of majority stake 1881 in Duewag AG First electric elevated railway and streetcar subway in Berlin in Lichterfelde

Unrestricted © Siemens AG 2018 Page 14 June 2018 Mobility Division We are Siemens Mobility

Legally separate Globally Along the entire entity value chain

Shaping connected mobility!

Unrestricted © Siemens AG 2018 Page 15 June 2018 Mobility Division We share a #PassionForMobility

30,453 16,500 employees worldwide employees for more than 10 years with Siemens Mobility

91% of employees „willing to go beyond 2018 expectations to help Siemens succeed“ (Siemens Global R&D employees Engagement Survey 2017)

1,106 patent applications 850 since 2014/2015 apprentices

Unrestricted © Siemens AG 2018 Page 16 June 2018 Mobility Division We are close to our customers – Locations all over the world

Unrestricted © Siemens AG 2018 Page 17 June 2018 Mobility Division Excellent growth and industry leading margins

Revenue, in € bn Profit, in € bn Profit margin, in %

8.1 0.7 9.2 7.2 7.3 0.5

FY14 FY17 FY14 FY17 FY14 FY17

Mobility Division only

Unrestricted © Siemens AG 2018 Page 18 June 2018 Mobility Division Profit margin – Stable value generation

Target margin 6% – 9%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 2015 2016 2017 2018

From 2012 to 2018 Siemens Mobility underwent several organizational changes and acquisitions. Figures are therefore not comparable from year to year. Rail Traction business not included.

Unrestricted © Siemens AG 2018 Page 19 June 2018 Mobility Division Siemens Alstom transaction is still pending and subject to regulatory approval and closing.

Unrestricted © Siemens AG 2018 Page 20 June 2018 Mobility Division Siemens Alstom1 – Generating more value out of a position of strength

Siemens 65.000 Over 60 Alstom employees countries A global player in Rolling Stock, Signaling, Services, €15.6 bn €59.3 bn and Systems revenue backlog

1 Siemens Alstom transaction is still pending and subject to regulatory approval and closing.

Unrestricted © Siemens AG 2018 Page 21 June 2018 Mobility Division Serving our customers along the entire value chain – We are shaping connected mobility

Intelligent infrastructure

Digital service Rolling stock

Turnkey projects

Unrestricted © Siemens AG 2018 Page 22 June 2018 Mobility Division Shaping connected Intelligent infrastructure mobility with Rolling Digital service Rolling stock stock

Turnkey projects

Unrestricted © Siemens AG 2018 Page 23 June 2018 MobilityDivision DivisionMobility A portfolio for all distances and speeds

Urban Interurban

High-Speed and Intercity Trains Loco- Speed (km/h) Speed motives Passenger Coaches Commuter Trains Metro, Light Rail, Automated People Mover

1 10 30 Average distance between stops (km) 50

Unrestricted © Siemens AG 2018 Page 24 June 2018 MobilityDivision DivisionMobility Vectron Strong platform and cross- border reach

Unrestricted © Siemens AG 2018 Page 25 June 2018 MobilityDivision DivisionMobility Mireo Modularization for flexible and comfortable commuting

Unrestricted © Siemens AG 2018 Page 26 June 2018 MobilityDivision DivisionMobility New drive systems Battery power and fuel cells

Unrestricted © Siemens AG 2018 Page 27 June 2018 MobilityDivision DivisionMobility SiAPS Super efficient auxiliary power supply for trains

Unrestricted © Siemens AG 2018 Page 28 June 2018 MobilityDivision DivisionMobility Shaping connected mobility at …

Highlights 2018

Unrestricted © Siemens AG 2018 Page 29 June 2018 MobilityDivision DivisionMobility In recent weeks, people have been spotting something …

Unrestricted © Siemens AG 2018 Page 30 June 2018 Mobility Division 4,170 But they are wondering – People already like #seeitnovo What is this test car 133,497 all about? Single interactions

Unrestricted © Siemens AG 2018 Page 31 June 2018 MobilityDivision DivisionMobility #seeitnovo Unrestricted © Siemens AG 2018 Page 32 June 2018 Mobility Division #seeitnovo Unrestricted © Siemens AG 2018 Page 33 June 2018 Mobility Division Velaro Novo

#seeitnovo Unrestricted © Siemens AG 2018 Page 34 June 2018 Mobility Division Velaro Novo delivers on all targets with its key qualities

… make infrastructure … increase value … enhance passenger … guarantee intelligent sustainably over experience availability the entire lifecycle

Investment Available space Maintenance Mass Energy consumption -20% +10% -30% -15% -30%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Start Concept #seeitnovo Track testing First trainset R&D Project Design testcar delivery for Review manufacturing revenue service

Unrestricted © Siemens AG 2018 Page 36 June 2018 MobilityDivision DivisionMobility Shaping connected Intelligent infrastructure mobility with Digital Digital service Rolling service stock

Turnkey projects

Unrestricted © Siemens AG 2018 Page 37 June 2018 MobilityDivision DivisionMobility Big Data Failure Prediction based on artificial intelligence

Unrestricted © Siemens AG 2018 Page 38 June 2018 MobilityDivision DivisionMobility Barcelona- Madrid line 100 percent availability with digital service

Unrestricted © Siemens AG 2018 Page 39 June 2018 MobilityDivision DivisionMobility Shaping connected Intelligent Shaping infrastructure connectedmobility with mobilityIntelligent with Digital service Rolling infrastructure stock Intelligent infra-

Turnkey structure projects

Unrestricted © Siemens AG 2018 Page 40 June 2018 MobilityDivision DivisionMobility Rail automation, electrification, road and intermodal solutions

Main- Mass Rail line Rail Transit Electri- Auto- Rail fication mation Auto- mation

Freight Intelli- Inter- and Pro- gent modal ducts Traffic Solu- Rail Systems tions Auto- mation

Unrestricted © Siemens AG 2018 Page 41 June 2018 MobilityDivision DivisionMobility Sinet Technology Reducing amount of interlocking buildings

Unrestricted © Siemens AG 2018 Page 42 June 2018 Mobility Division Shaping connected mobility with advanced infrastructure – Digitalization of the Norwegian Railway

Unrestricted © Siemens AG 2018 Page 43 June 2018 MobilityDivision DivisionMobility Move logic to cloud Conforms with highest security levels. No more project specific hardware

Page 44 June 2018 © gettyimages MobilityDivision DivisionMobility Digital station 3 seconds less dwell time increases system capacity by 5%

Unrestricted © Siemens AG 2018 Page 45 June 2018 MobilityDivision DivisionMobility Real-time Electrification Network Prediction Up to 100% network availability

Unrestricted © Siemens AG 2018 Page 46 June 2018 MobilityDivision DivisionMobility Data Capture Unit Achieving cybersecurity in a connected environment

Unrestricted © Siemens AG 2018 Page 47 June 2018 MobilityDivision DivisionMobility Flow AI Application Traffic flow optimized by 4% using artificial intelligence

Unrestricted © Siemens AG 2018 Page 48 June 2018 MobilityDivision DivisionMobility Shaping connected Intelligent Shaping infrastructure connectedmobility with mobilityTurnkey with Digital service Rolling projects stock Intelligent infra-

Turnkey structure projects

Rolling stock

Intelligent Digital service infrastructure

June 13, 2018 | Sabrina Soussan and Michael Peter

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