Siemens in China. Ingenuity for life. Siemens Ltd., China Siemens Ltd., China. Unrestricted
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1 Siemens in China Ingenuity for life Page 1 Unrestricted
2 Siemens is one of the world s largest producers of energyefficient, resource-saving technologies Key figures of Siemens AG in fiscal 2017* Orders and revenue (Continuing operations) Orders 85,669 Revenue 83,049 Employees (in thousands) Total (continuing operations) 377 Germany 118 Outside Germany 259 Profitability and capital efficiency (Continuing and discontinued operations) Net income 6,179 Return on capital employed (ROCE) 13.5% *Fiscal 2017: October 1, 2016 September 30, 2017 * In millions of except where otherwise stated Page 2
3 Siemens has been partnering with China for 145 years Werner von Siemens founded Siemens & Halske Siemens set up its first permanent office in China in Shanghai Cooperation memorandum inked with China. The cooperation was renewed in 2011 and 2016 and deepened in 2017 in areas of innovation and digitalization 2006 Siemens China Corporate Technology officially opened 2013 Siemens first digital enterprise in China began operation in Chengdu 2017 Siemens first Digitalization Experience Center in Asia-Pacific Region opened in Beijing Siemens supplied the first pointer telegraph to China, marking the start of China s modern telecommunications John Rabe, then Siemens representative in Nanjing, saved 250,000 lives from massacre Siemens Ltd., China was established, the first holding company formed by a foreign investor in China Siemens Center Beijing, headquarters of Siemens China, came into operation in Beijing 2008 Siemens China Innovation Center Initiative launched to explore digital innovations 2016 Page 3
4 Siemens is an integral part of China s economy and society Siemens is one of the largest foreign-invested companies in China 7.2 billion revenue in fiscal 2017 Siemens has a work force of over 32,000 in fiscal 2017 Page 4
5 Our wide range of businesses covers the entire industrial chain Business Separately managed Power and Gas Power Generation Services Energy Management Building Technologies Mobility Digital Factory Process Industries and Drives Healthineers Siemens Gamesa Renewable Energy Financial Services Page 5
6 We focus on electrification, automation and digitalization Electrification Transform the electrification value chain by empowering our customers to generate, transmit, distribute, utilize power and manage digital grid with high efficiency Automation Automate customers facilities and systems to enable a higher level of productivity, efficiency and availability Digitalization Push for mergence of the physical and virtual worlds to benefit customers from design and engineering, to production and operation as well as maintenance and service Page 6
7 We innovate for a digital future 12,000 Around active patents and patent applications 4,500 More than R&D and engineering staff 21 R&D hubs across the country R&D cooperation with 90 universities and education organizations Siemens China Corporate Technology initiated in 1998 and officially opened in 2006 Siemens China Innovation Center Initiative launched. Siemens China will lead the company s global research in autonomous robotics Page 7
8 Support Belt and Road Initiative and go global with Chinese companies With leading technologies, complete portfolio, global network, financial solutions and flexible service models, Siemens cooperates with Chinese companies in fields including infrastructure, power, oil & gas and chemicals, and industry. By 2017, Siemens had worked with over 100 Chinese companies to explore opportunities in over 100 countries across six continents. Page 8
9 We make real what matters 33 Driving the economy 33 metro lines in 15 Chinese cities used Siemens signaling systems by 2017 > 1/4 > 1/4 of China s mid and high-end buildings use Siemens fire alarm systems > 650 > 650 people per day in China go through heart surgery with the support of Siemens medical equipment Improving quality of life Developing local jobs and skills 11 Siemens Cup China Intelligent Manufacturing Contest held for 11 years by Create level-playing field through Collective Action and Siemens Integrity Initiative with ~ 55 projects in 40 countries > 100 Cooperation with > 100 Chinese companies to explore opportunities in > 100 countries across six continents by 2017 Value-added for innovations and societal transformation Sustaining the environment > Technical support for over 167,000 Chinese industrial enterprises by fiscal 2017 > 45% > 45% of China s fossil power plants use Siemens highly-efficient turbine technologies > 1000 > 1,000 Chinese SMEs upgraded their equipment through Siemens financial solutions by fiscal 2017 > > 32,000 jobs created in China > 8000 > 8,000 participations per year in trainings provided by Learning Campus China of Siemens > 250 Offline Core Learning Program and > 250 courses on E-Learning Platform open for employees in China > 50% > 50% of offshore wind turbines installed in 2014 and 2015 in China were manufactured with Siemens technology 18 Contributed to construction of 18 HVDC lines in China by fiscal 2017 > > 22,500 children in nine cities across China benefited from Siemens I-Green Education Program by 2017 * All figures relate to fiscal 2017 (October 1, 2016 September 30, 2016) unless stated otherwise Page 9
10 Develop digital enterprise In cooperation with Ministry of Education, Siemens helped universities establish labs and develop textbooks, and has been sponsoring the Siemens Cup China Intelligent Manufacturing Contest for 11 years to cultivate innovative engineering talents. Page 10
11 Develop digital enterprise 1 Siemens joined hands with Hangzhou Wahaha Group Co., Ltd. in a digital and intelligent upgrade project of a water/aerated water line. In the food and beverage industry, this was the first intelligent manufacturing demonstration pilot project under the Ministry of Industry and Information Technology. It was also the first digital and intelligent beverage production line in China. Page 11
12 Push forward energy transition Siemens will deliver a power block for a new combined cycle in Black Point Power Station in Hong Kong. This is the first H- class power plant project in Greater China. The plant will have an installed total capacity of 550 megawatts to supply approximately 1 million households with electricity per month. Page 12
13 Push forward energy transition Siemens equipped Shanghai Tower, which claims a power consumption equivalent to that of a small town with a population of 50,000, with advanced energy management and intelligent building systems in terms of power transmission and distribution, energy automation, fire alarm control and intelligent lighting system, enabling safe and reliable power supply and intelligent management of the building. Page 13
14 Build digital cities Siemens provided integrated Traffic Management System for Zhuhai. The system collects, sorts out and analyzes mass data about traffic, providing a quantitative basis and criterion for the decision makers and bringing tangible convenience to residents. Page 14
15 Build digital cities Siemens provided intelligent building management systems to the Passive House Technology Center at Qingdao Sino-German Ecopark. The building achieved the goal of being a nearly zero energy consumption building and provided a perfect living environment to people. Page 15
16 Leverage digitalization to create value Siemens Industrial Automation Products Ltd., Chengdu (SEWC) is the company s first digital factory outside Germany, and it is highly digitalized from product design to manufacturing. Its first-pass yield of products could reach 99.5%. Page 16
17 Leverage digitalization to create value Siemens cooperated with Hong Kong Science and Technology Parks Corporation to establish Smart City Digital Hub. Powered by Siemens cloud-based open IoT operating system MindSphere, the Hub will tackle city challenges and unlock potential of digitalization that is rising rapidly in Asia. Page 17
18 We only do clean business Operate Siemens Compliance System and keep excellent compliance team Enhance intensive trainings to promote compliance awareness and knowledge among employees Foster integrity and live Siemens values Launch Integrity Initiatives to promote clean business environment Committed to responsible actions in line with Siemens values Our Company s active ownership culture makes the difference. Above and beyond ingenuity, people rightly associate Siemens with reliability, fairness and integrity. Joe Kaeser, President and CEO of Siemens AG Page 18
19 Our comprehensive initiatives help achieve people excellence Attract talents Experienced hiring Campus recruitment campaign ERP (Employee Referral Program) Development Young Talent Development Programs Job rotation and assignment Three career paths : Management, Project Management and Expert Learning Training from Learning Campus China E-learning Siemens Learning Day High-performance culture Comprehensive employee performance evaluation system Flexible reward measures Page 19
20 Siemens creates lasting values to the society Corporate Social Responsibility: caring for societies & strengthening business In 2012, Siemens established Siemens Employee Volunteer Association (SEVA) to provide a volunteerism platform for the society, employees and the company. Access to Education Access to Technology Sustaining Community Siemens I-Green Education Program consistently benefited 22,500+ children in nine cities across China between September 2009 and December Siemens aims to achieve a net-zero carbon footprint by The distributed PV system will bring Siemens Circuit Protection Systems Ltd., Shanghai an estimated 15% reduction in CO 2 emissions per year. Siemens organizes various volunteering activities about environmental protection, supporting development of NGOs, and providing social and humanitarian assistance to people in need. Page 20
21 Ingenuity for life It is Siemens unrelenting drive and promise to create value for customers, employees and the society. Siemens makes real what matters, and creates a better life for all of us. Page 21
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