DesignCamp 2011 Power Days Siemens and smart cities
Okt. 5th. 2011 John Finnich Pedersen
Š Siemens AG 2010. 2009. All rights reserved
Committed to profit and growth
Revenue by Sector Healthcare €12,4 billion
Revenue by region Cross-Sector Businesses
7,7 6% %
Germany
Asia, Australia 18% 18%
€4,8 billion
15% 15%
16% 45% 49% 29% 33%
Industry €34,9 billion
27% Americas
Energy €25,5 billion
Total Revenue Sectors and Cross-Sector Businesses
Revenue and employees 100.000
500
80.000
400
60.000
300
40.000
200
FY
Revenue in millions of euros 1985
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1990
1995
December 2010
Europe, CIS, Africa, Middle East (excl. Germany)
Location of customer
Key figures
Employees in thousands
20.000
40%
2000
2010
100
Continuing operations (in millions of euros)
FY2009
FY2010
Revenue New orders Income Free cash flow Employees
76,651 78,991 2,457 3,786 405,000
75,978 81,163 4,112 7,111 405,000
Corporate Communications © Siemens AG 2010. All rights reserved.
Innovation is our lifeblood
Major R&D investments
Major innovations
€3,846 billion in fiscal 2010, or 5,1% of revenue
Our patent position in fiscal 2010: Î Germany: No. 3 Î Europe: No. 2 Î USA: No. 13 Most recent innovations: Î Biograph mMR: World’s first integrated whole-body MR-PET for precise measurements of position, type and activity of tumors Î World’s most powerful gas turbine: With a 60-percent efficiency rating, the turbine drastically cuts fuel consumption and CO2 emissions Î Velaro high-speed train travels up to 350 kilometers per hour, consumes 0.33 liters of fuel per seat and 100 km
30,100 R&D employees worldwide 18,000 software engineers 178 R&D locations in over 30 countries around the world 8,800 inventions in FY 2010 57,900 active patents R&D spending in % of revenue 5,1% 5,1%
4,7%
FY2007
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4,9%
FY2008 FY2009 FY2010
December 2010
Corporate Communications © Siemens AG 2010. All rights reserved.
"Pictures of the future" Concept as basis for formulating a future strategi
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December 2010
Corporate Communications Š Siemens AG 2010. All rights reserved.
Strategic innovation planning
Scenarios for the sectors
Strategic vision
Influencing factors Individuals
Extrapolation via roadmaps Today’s business
Products Technologies Customer requirements
Retropolation out of scenarios New markets New customer requirements New technologies New business
Industry
Society Politics Economy
Energy Environment Technology
Healthcare
Customers Competition
Today
Short-term
Medium-term
Long-term
Time horizon (varies markedly across the different sectors)
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December 2010
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Megatrends shape our future
Urbanization 2007: for the first time in history, more people live in cities than in rural areas. Today 280 million people live in megacities (> 10 million residents) 2030: 60 % of the world’s population will live in cities Urban conglomerations contribute a high share of a nation’s economic output: Tokyo provides 40% of Japan’s GDP, Paris generates 30% of France’s GDP.
Demographic Change Average life expectancy worldwide will increase to 72 years in 2025 from 46.6 years in 1950. World population will grow from more than 6 billion now to 8 billion by 2025. 95% of the global population growth is taking place in developing countries. The 65+ generation will nearly double worldwide by 2030 (from 7% to 12%),
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Megatrends shape our future
Climate Change The average global surface temperature has increased by 0.76° C compared to the 18th century. 11 of the 12 years between 1994 and 2005 rank among the 12 warmest since weather observations began. Greenhouse gas emissions haven risen dramatically since industrialization. Today we face the highest CO2 concentration in the atmosphere for the past 350,000 years.
Globalization From 1950 to 2004, the volume of global trade has increased 27.5-fold. The number of global players has grown from 17,000 in 1980 to over 70,000 today. Ocean freight has increased over the past four decades from less than 6,000 billion ton-miles to over 27,500 billion ton-miles a year.
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Megatrend challenges – Siemens' answers for an urbanizing world
Cities are centers of growth
€1,700 billion
Infrastructure spending amounts to €2 trillion* worldwide / year 300
Siemens-relevant market: about €300 billion
World population in billions 9,3 6,9 in Mrd. 70% 50% Cities Euro
2010
Cities account for 80% of greenhouse gas emissions
By 2050, about 70% of 300the world population will live 2050 1700 in cities
Siemens has the answers Energy: leading HVDC technology transmits power from remote energy sources to cities at low loss Building technology: "Performance Contracting" – energy savings of up to 40% finance investments in energyefficient building technology Security: complete solutions Mobility: full spectrum of mobility systems (Complete Mobility) Water: largest provider of products for every stage of water treatment Healthcare: world leader in IT solutions for healthcare, efficient processes in hospitals lower costs
* Calculations based on OECD data in „Infrastructure 2030“
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Future energy system: combined energy mix, energy effectivity and Smart Grid…
… in one integrated energy system
Fluctuating production from renewable energy
Central CSP provides basis eland heat production Display for CO2 emission
Central and decentral powerplants are managed in one integrated system
Wireless censors and intelligent meters for managing flexible power consumption
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December 2010
Micro power heat production in intelligent buildings
Parking spots for e-cars with chargesstations
Energy storage to compensate fluctuating production
Corporate Communications © Siemens AG 2010. All rights reserved.
London's environmental footprint is already comparatively low along some dimensions Values per year (2005 or most recent available before) London New York City
CO2 from buildings kg CO2/person
Stockholm
5,000
Tokyo Rome
CO2 from transport kg CO2/person
Municipal waste kg/person
2,500
1,000
CO2 from industry kg CO2/person
750
2.5
Air pollution kg of particle matter (PM10)/person
200 Source: Š McKinsey & Company 2008
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December 2010
Water m3/person
Corporate Communications Š Siemens AG 2010. All rights reserved.
Sustainable Urban Infrastructure – key findings for London 2025 Greenhouse gases 1
International targets for greenhouse gas reduction are achievable through technological levers without a significant change in lifestyle
2
The majority of technologies pay back the required up-front investment through energy savings
3
Around 75% of the abatement potential lies in the hands of individuals or businesses who make technological choices
4
The total investment required constitutes less than 1% of GVA
Water 5
Technologies for water demand reduction could achieve 20% savings by 2025
Waste 6
Given the high and rising landfill tax, alternative (and more sustainable) technologies become economically attractive
Source: Š McKinsey & Company 2008
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December 2010
Corporate Communications Š Siemens AG 2010. All rights reserved.
In London, international targets for greenhouse gas reduction are achievable through technological levers Mt CO2 Reduction* Percent
London emissions
45.1
Targets
47.0
-43.7
-12.5
-20.0
-30.0
-60.0
39.5 36.1 31.6 25.4 18.0
1990
2005
2025 after identified levers
2012 Kyoto 2020 EU
2025 UK
2025 Lond on
* Compared to 1990 emissions
Source: Š McKinsey & Company 2008
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December 2010
Corporate Communications Š Siemens AG 2010. All rights reserved.
The biggest contribution to London’s abatement potential comes from buildings Mt CO2
Cost < 0 EUR/t CO2* Cost > 0 EUR/t CO2* 1.8
47.0
45.2
10.6 9.2 1.4
2005
Changes to 2025 2025
Buildings
3.0 1.8 1.2
Transport
-19.8 2.5 1.4 1.1
Decentral energy
3.7 1.0 2.7
Central energy
25.4
2025 after levers
Identified levers Source: © McKinsey & Company 2008
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The majority of technologies pay back the required up-front investment through energy savings Greenhouse gas abatement cost curve for London 2025 (decision maker perspective) Abatement costs EUR/t CO2 2,200 2,000 1,800 1,600 1,400 Levers that pay back the required investment 1,200 1,000 800 13.4 Mt 600 400 200 0 -200 0
5
10
15
20
-400 New builds* Coal-to-gas shift Windows Floor insulation Biofuels Petrol engine efficiency package Lighting (commercial) Wind offshore Solid wall insulation Heat from existing Wind power onshore stations Lighting (residential) Heat recovery Electric appliances Optimisation of building controls Condensing boilers Loft insulation Gas engine CHP
Cumulated abatement potential Mt CO2 Source: Š McKinsey & Company 2008
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December 2010
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Around 75% of abatement potential lies in the hands of individuals or businesses who make technological choices Percent
Total: 19.8 Mt CO2
National level Examples: Biofuels Central electricity supply (grid mix)
City Examples: Public buildings Hybrid buses Traffic management
3
21
21 21 48 48
48
Businesses Businesses Examples: Lighting in commercial buildings Cooling displays Decentral energy (CHP) Source: © McKinsey & Company 2008
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December 2010
28
28 28
Individuals Examples: Buildings insulation Low-emission cars Efficient household appliances Corporate Communications © Siemens AG 2010. All rights reserved.