ehighway, -Innovative solution for heavy road transport Unrestricted Siemens AG 2016

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ehighway, -Innovative solution for heavy road transport Unrestricted Siemens AG 2016 siemens.com

Measures to reduce road freight CO 2 emissions CO 2 emissions (Mt/a) 120 100 80 60 99 Mio. t 87 Mio. t 73 Mio. t 65 Mio. t 61 Mio. t 40 20 0 8 Mio. t Without action With rail expansion With logistic optimization With improved efficiency With biodiesel-blending Target level -80% of 2005 Source: German Ministry of Environment (BMU), March 2013 Page 2

Zero emission are possible with renewable energy, but efficiency varies greatly Pathway Range Cost per km Efficiency WTW Example vehicle Electric Road Systems e - Grid (incl. catenary) e - 96 kwh 12 ct/kwh etruck (Catenary-Hybrid) 1,6 kwh/km 60 km 19 ct/km 77% Battery e - Grid e - 96 kwh 10 ct/kwh etruck (Battery) 2 kwh/km 48 km 20 ct/km 62% 100 kwh 6.0 ct/kwh Hydrogen 2 kwh 5 kwh Electrolysis ŋ = H 2 H 2 - CH 2 - fuel e - 70% network 1) H 2 C.H station 2 Fuel cell truck 24 km 55 ct/km 29% 93 kwh 65 kwh 15 ct/kwh Power-to-Gas 65 kwh 18 ct/kwh 65 kwh 20 ct/kwh 2 kwh Electrolysis ŋ = NGnetwork 1) NG CNG CNG-fuel e - Methanation H 2 CH 70% ŋ = 80% 4 station 2.7 kwh/km Gastruck 17 km 70 ct/km 20% 1) Including storage Source: German Ministry of Environment 98 kwh 69 kwh 15 ct/kwh 55 kwh 19 ct/kwh 55 kwh 20 ct/kwh 55 kwh 22 ct/kwh 3.2 kwh/km Page 3

Infrastructure built on the heavily trafficked roads can address significant part of heavy duty emissions GS KS LS BS BAB IO AO BAB IO = Urban roads AO = Non-urban roads BAB = Federal freeways BAB = Federal freeways (12.594 km) BS = Federal roads (40,400 km) LS = State roads (86,600 km) KS = District roads (91,600 km) GS = Municipal roads (>420,000 km) Length of road network CO 2 emissions from HDV 60% of the HDV emissions occur on 2% of the road network (BAB = 12,394 km) The most intensely used 3,966 km handle 60% of all ton-km on the BAB Image: HDV density on BAB-network ; Source: Verkehr in Zahlen 2012; TREMOD 2012 Page 4

Pre Commercial Procurement of Electric Road System Page 5

Pre Commercial Procurement of Electric Road System - Proposals Mertainen Pajala Svappavara Boliden Piteå Borlänge Gävle Arlanda Jönköping Oskarshamn Borås Växjö* Page 6

Elväg Gävle, Elväg E16 Transport service customer Boliden SSAB Sandvik Outokumpu Stora Enso Ovako Regional public actors Region Gävleborg Sandvikens kommun Sandviken Energi Gävle Energi Gävle hamn Region Dalarna Gästrike Räddningstjänst Page 7 Forwarding companies Ernsts express National public bodies Trafikverket Elsäkerhetsverket Transportstyrelsen Länsstyrelsen Polisen SOS Alarm Region Gävleborg

Region Region Gävleborg Gävleborg https://www.youtube.com/watch?v=fmcmmydf6la

Experiences so far. - Region Gävleborg is project owner and combines political, industrial and academic resources.the region will not be part of the future business and is well suited to act in a pre-commercial procurement process - ERS is built and is operated without exceptions from the legal system or existing policies! - During two years trucks with vehicles up to 60 tons, in test and commercial traffic - Operation and traffic issues like daily operation -Two trucks now in operation

Where are we now? Sweden Demo operating E16 USA Field trial ongoing Germany field trials Innovation Procurement Process for demo projects by Trafikverket Field trial (2 years) started June 22 2016 Overall aim: evaluate ERS-options prior to introduction on road network Scania as truck OEM, two trucks in operation Page 10 ehighway to reduce emissions of port links on 1-mile infrastructure near ports in L.A. and Long Beach Cooperation with Volvo Trucks and local truck converters Contract with South Coast Air Quality Management District testing throughout 2017. R&D Projects (ENUBA) incl. test track in Gross Dölln 5km Field trial on A5 near Frankfurt awarded to Siemens 5km Field trial on A1 by Lübeck Call issued in August 7km Field trial B462 Baden- Württemberg announced in Sep

Sweden Merkel-Löfven Joint Declaration Trafikverket (Swedish Transport Administration) aims for a semi-commercial pilot as a next step Germany BMUB: Hendricks endorsement, UBA economic report BMVI: Mobility & fuels strategy report, BASt assessment BGL (trucking association) strongly in favor BDI report (as reported by FAZ) favoring investing 37 billion EUR in contact lines and suitable trucks for autobahn use Rest of World Sweden and Germany agree to campaign at European level for the wider spread of this technology. French feasibility project E-Way Corridor Norwegian feasibility project ELinGO Highways England feasibility study FABRIC project of EU Commission IEA report: 36% of world s trucks in 2050 use catenary IRU report: 40-45% of EU long haul trucking electric by 2050 T&E report: Need to start piloting ERS straight away Region Gävleborg

Why Electrical Road Systems? ERS reduces energy use. ERS reduces CO2 emissions. ERS reduces operation cost and can finance the necessary investments in infrastructure and veihicles that way. ERS utilizes existing infrastructure. ERS creates a new national field of knowledge and a new industrial branch. ERS is great field for cooperating between the political, administrative and industrial entities. Page 12

135th anniversary of ERS (Electric Road Systems) German Highway Concept (1936) Electric mining truck Siemens Elektromote (1882) Trolleybus in Germany Road applications date back more than 130 years About 300 trolleybus systems (incl. long-distance up to 100 km for inter-city traffic) operative world-wide Road applications demand early standardization to allow for common interfaces to base vehicles Page 13 Electric traction systems can be beneficially used on highways as well Applicable to trucks/long-distance busses May be combined with energy storages DC power supply (600... 750 V nominal), catenary type contact lines

Thank you for your attention Anders Bylund Siemens AB Mobility UpplandsVäsby Mobile: +46 70 652 17 76 E-mail: anders.bylund@siemens.com www.siemens.com/mobility/ehighway Page 14