Siemens A&D: Energy-efficient Automation for Environmentally Compatible Production Siemens Media Summit

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1 Siemens A&D: Energy-efficient Automation for Environmentally Compatible Production Siemens Media Summit Dr.-Ing. Peter Zwanziger, Siemens A&D Large Drives

2 Worldwide greenhouse gas emissions Industry Twenty million industrial motors worldwide consume 65% of all electricity used in industry. Energy optimization could increase potential CO 2 reductions by 60 million tons. % of worldwide greenhouse gas emissions; Total: 40 Gt CO 2 e page 2 Siemens Media Summit 2007, Dr.-Ing. Peter Zwanziger Copyright Siemens AG

3 A&D is a leading global player in all relevant markets Factory Automation Process Automation Electrical Equipment for Buildings #1 #3 #2 Market: 49 bn Market: 40 bn. Market: 22 bn page 3 Siemens Media Summit 2007, Dr.-Ing. Peter Zwanziger Copyright Siemens AG

4 Overview of products and systems from Siemens A&D Units p.a Miniature Circuit-Breaker Switching Component SIRIUS 3R SIMATIC S7 LOGO! SITRANS P MASTER- DRIVES Energiesparmotoren SINAMICS LV SINUMERIK Perfect Harmony N-compact Traction Motor H-compact H-compact Plus Serie 1R.5S.5 SINAMICS GM Simovert S H-modyn Ring Motor 10 Distributed Control System PCS7 1 5 Products Systems Solutions > Euro per Unit PLC Switchboards Circuit protection Process instruments PC-based HMI Motors, Gears, Couplings MES products PLC-, CNC-, PCS-systems Drive systems Bus technologies Software systems Placement systems Complete solutions for factory and process automation (e.g. automotive/chemicals/ pharmaceuticals), electrical installation for buildings Motion control solutions page 4 Siemens Media Summit 2007, Dr.-Ing. Peter Zwanziger Copyright Siemens AG

5 Energy Optimization of Industrial Equipment Technical Services Products / Systems + = Customer Identification/evaluation of savings potentials Optimization concept Implementation Examples: Efficient industrial drive systems (Converters and Efficient Motors) Software-based power management (SIMATIC Power Control) ELFA hybrid drive system for public transportation Reduced power consumption (up to 60%) Reduced operating costs (up to 20%) Reduced harmful emissions (up to 30%) page 5 Siemens Media Summit 2007, Dr.-Ing. Peter Zwanziger Copyright Siemens AG

6 Worldwide challenges are A&D s growth opportunities Drivers Customer requirements Growth opportunities Need for shorter time-tomarket, greater transparency and superior quality Integrated design and production (Digital Factory) Synchronized production and supply chain management (Real-Time Production) Integrated PLM and automation systems Seamless HMI and MES Plant asset management systems Rising costs of raw materials More efficient processes More real-time information Advanced process control Integrated sensors and communication infrastructure Greater performance in automation systems Rising costs of energy Improved energy efficiency in processes, machines and components Energy management systems Energy-optimized drive systems High-performance components page 6 Siemens Media Summit 2007, Dr.-Ing. Peter Zwanziger Copyright Siemens AG

7 Consistent power management for industrial plants Solution / Customer Value Increased transparency of power usage and reduction of operating costs through Simatic Power Management software Reduced emissions through efficient use of energy and reduction of losses A systematic approach to Power Management: SIMATIC powercontrol Example Doppstadt in Calbe (environmental technology) 30% reduction of energy costs during the winter months GHG Savings potential (GHG=Green house Gas) Reduction of CO 2 emissions results in a reduction of CO 2 emissions of approx. 10% (estimated) Worldwide: total reduction potential of 400 to 600 million tons of CO 2 (i.e. half of Germany s CO 2 emissions) page 7 Siemens Media Summit 2007, Dr.-Ing. Peter Zwanziger Copyright Siemens AG

8 System approach for industrial drives as a major key to productivity and environmental protection Solution / Customer Value Reduction of losses through speed control in auxiliary processes with partial-load operation or overdimensioned drives Energy-efficient motors Regenerative braking Fast ROI (mostly shorter than 2 years) Energy-efficient frequency converters and motors Example GHG Savings potential (GHG=Green house Gas) Variable-speed pump drive at the waterworks of Berlin-Tegel, Germany Annual savings on power costs amount to 175,000 one year ROI Reduction of CO 2 emission through reduced power consumption and increased efficiency results in a immediate reduction of energy costs for industrial drives. Worldwide in total: reduction potential of 60 million tons of CO 2 per year. page 8 Siemens Media Summit 2007, Dr.-Ing. Peter Zwanziger Copyright Siemens AG

9 Drive systems are everywhere: World s first double-deck bus with hybrid drive system Solution / Customer Value Combination of diesel-electric drive and energy storage Reduction of CO 2 emission and fuel consumption Improved ride comfort through reduced noise Retrofit solution available Hybrid drive for transportation Example Order from Whrightbus Gemini for the City of London reduction of CO2 emission and fuel consumption of about 30% GHG Savings potential (GHG=Green house Gas) Savings potential of 4 Mio. tons CO2 p.a. in EU 25 (applies to the complete retrofit of the city buses to hybrid dive) ELFA hybrid drive system is successfully used in about 1,000 city buses to date ROI after about 3 years after start of series page 9 Siemens Media Summit 2007, Dr.-Ing. Peter Zwanziger Copyright Siemens AG

10 ... And a wide range of other applications (examples) Ships Chemicals & Water Metals & Paper Wind Energy Mining & Steel Mills Oil & Gas page 10 Siemens Media Summit 2007, Dr.-Ing. Peter Zwanziger Copyright Siemens AG

11 Disclaimer This presentation contains forward-looking statements and information that is, statements related to future, not past, events. These statements may be identified by words as expects, looks forward to, anticipates, intends, plans, believes, seeks, estimates, will or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens control, affect its operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens worldwide to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from: changes in general economic and business conditions (including margin developments in major business areas); the challenges of integrating major acquisitions and implementing joint ventures and other significant portfolio measures; changes in currency exchange rates and interest rates; introduction of competing products or technologies by other companies; lack of acceptance of new products or services by customers targeted by Siemens worldwide; changes in business strategy; the out-come of pending investigations and legal proceedings; our analysis of the potential impact of such matters on our financial statements; as well as various other factors. More detailed information about our risk factors is contained in Siemens filings with the SEC, which are available on the Siemens website, and on the SEC s website, Should one or more of these risks or uncertainties materialize, or should underlying assump-tions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed sought, estimated or projected. Siemens does not intend or assume any obligation to update or revise these forwardlooking statements in light of developments which differ from those anticipated. page 11 Siemens Media Summit 2007, Dr.-Ing. Peter Zwanziger Copyright Siemens AG