Die Perspektive global agierender Konzerne am Beispiel Siemens · Page 4 November 2017 © Siemens AG 2017 GS SRE Siemens focus on E-A-D leads to changes in product portfolio and space

realestate.siemens.com© Siemens AG 2017

Die Perspektive global agierenderKonzerne am Beispiel SiemensDr. Sluitner, CEO Siemens Real EstateDarmstadt, 2. November 2017

November 2017Page 2 GS SRE© Siemens AG 2017

Our World is Changing


Global megatrends shaping the Siemens world of tomorrowG

loba

lTre

nds

Today

Electrification

Automation

DigitalizationCAGR: ~8%

CAGR: ~3 - 4%

CAGR: ~ 1 - 2%

Time

Siemens Business Focus

CAGR = Compound annual growth rate


Siemens focus on E-A-D leads to changes in product portfolioand space requirements

Indu

stria

lO

ffice


Acquisition of Dresser-Rand

Massive space volatility in 1 year

Acquisition of CD-adapcoListingannounced

Acquisition of Mentor Graphics

Merger of Siemens Mobility with Alstom

Merger of SiemensWind Power withGamesa

Water TreatmentLow synergies sold to AEA

Metals TechnologiesJV with Mitsubishi heavy industry+0‘7

3‘m²

m²

-


Business focus of Siemens drives value and growthbut erodes SRE’s portfolio

Outlook19

Outlook18

201720162015201220092006

0

10

20

30

40

50

60

70

80

90

0

1

2

3

4

5

6

7

8

20102005200019951990

Ø 1990 - 1999

Ø 2000 - 2009

Net income1)

in bn €Revenue in bn €,as reported

Ø 2010 - 2016

2016

Siemens profit and revenue (€) SRE’s portfolio (m²)

Driver 2: Space optimizations & consolidations

Driver 1: M&A activities


CREM

Operator

OwnerUser

Others

Heavy Industrial

Light Industrial

Office

RE lifecycle

The changes require an answer on different levels

ƒ Focus on EAD

ƒ Shift from heavy tolight Industrial

ƒM&A drivenportfolio changes

ƒ Fragmentation ofCREM

ƒ Space reduction

ƒ Higher spaceefficiency

ƒ Productivity targets

ƒ New workingmethods

ƒ Demand forcoworking

ƒ Agility anddigitalization

TrendsP e r s p e c t i v e s


Continuous portfolio optimization along asset classes

OfficePortfolio

Raise Potential

Marketable OfficeProperties

• Good locations• Multi-Tenant• Third-party usability

LightIndustrial

Develop Potential

Marketable Production

• Medium locations•Transformationproperties

HeavyIndustrial

Special Production

• Limited third-partyusability

• Long term Division use• Single-Tenant

Identify Risks

WorkoutPortfolio

Properties withlimited Marketability

• Undeveloped plots•Vacant properties• Special usages•Small locations

Manage Risks

Fungibility Risk


Space Provision• Increase flexibility in letting: offer pay per

use, shorter and customized lease terms• Develop agile space concepts for a

digitalized world• Improve customer relation via live feedback• Connect all data platforms and create digital

workflows along RE lifecycle• Establish provider steering based on

globally harmonized KPI’s

Construction• Smart buildings will become mainstream:

review and adjust Construction standards• Create flexible buildings allowing rapid use

changes for e.g. coworking• Use advancement in digital technologies to

reduce time and cost by same quality

SRE’s agenda: Increase flexibility to meet digital and customerrequirements


ƒ Definition of 5-6 globalharmonized KPIs

ƒ High transparency andeasy identification ofimprovement areas

ƒ Revised KPIs areconsidered mandatorily intenders and contracts

Steering of FM/FS providers based on harmonized KPI’s

1) Compliance maintenance plan

2) Response Time

3) # faults per asset

4) Incidents - EHS

5) Resolution time

6) M&E downtime

7) Customer satisfaction

8) Delivery datesinvest./budget plan

9) Delivery datesreports

10) Security servicetrainings

11) Consistencyof the organization

12) Qualificationobject manager.

13) Labor turnover rate

14) Energy consumption

15) Self performed work

Market

SRE

1) Compliant Maintenance Plan

2) Response Time

3) # Faults per Asset

4) Incidents - EHS

5) Resolution Time

Revised KPI catalogue


Future Siemens business demands diverse ways of workingWorking Environment @ Siemens

BusinessCenter

Food,Health &

WellbeingFactory

New Waysof Working -

SiemensOffice

Focus on newworking culture,mainly office space

HR | SRE | IT

Space related (€/m²)

Centralized meetingrooms with uniformcharging and booking

SRE

Space related (€/m²)Pay per use

Conference centerplus workplaces fortemporary use

SRE

Pay per use

Innovative Space“Start-Up” alikeMulti purpose use

SRE | IT

Pay per use

Restaurants, Café,Fitness, Kindergartenfor employees

HR | SRE | Other

Various

Production relatedspace, specialpurpose properties

SRE | Business

Space related (€/m²)

Characteristics

Involvement

Charging

Future Importance

Working Environment

Standardisation & Regulation

Flexibility & AutonomySRE Offerings

CoworkingSpaces

ConferenceCenter

Core Add-on


SCRUM!Source: www.talksport.com


Agile working methods need a different space structure

Scrum

SCRUMTEAM

1

SCRUMTEAM

2

SCRUMTEAM

3

SCRUMTEAM

4

c

Communication

cc

c

MEETING

TESTRACK

MEETING

TESTRACK

TESTRACK

TESTRACK

ADDITIONALSPACE

ADDITIONALSPACE

ADDITIONALSPACE

ADDITIONALSPACE


Agile working methods need a different space structure

5 teams zones, each with 8 workplaces and adjacent test rack zone2 scrum spaces and additional space for communication and collaboration

Team scrum spacec

Additional space

Test rack / storage

Scrum teams


Space for agile working need a different look


Workplace demand 2020: flexible, modular and adaptive

Virtualworkforce

‘Mega’connectivity

Multi generationalInclusive andethnically diverse


We want to digitalize the entire Real Estate Life Cycle

SRE Inside Customer Construction Life Cycle

Scope of Digital Business Model

§ €

Optimization ofProcesses

RelationshipManagement

Basis for DigitalAsset Management

VisionDigitalization of the entire Real Estate Life Cycle

StrategyMove from a digital foundation and individualprototypes to an overall digitalized CorporateReal Estate Management

Reduction ofLifecycle Cost

Development Design Construction Operations & Maintenance Sale /Engineering Services Redevelopment

D I G I T A L F O U N D A T I O N

IMPLEMENT

LEARN -BUILD -TEST

DEVELOP

D I G I T A L I Z E D C R E M

D I G I T A L P R O T O T Y P E S


Impact!

Demands for Corporate Real Estate Management @ Siemens

Increase flexibility inReal Estate solutionsand services

Make digitalizationpart of the Real

Estate business!

Provide flexible,modular andadaptive workplaces

Optimize theportfolio alongasset classes

Thank you.

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Die Perspektive global agierender Konzerne am Beispiel Siemens · Page 4 November 2017 © Siemens AG 2017 GS SRE Siemens focus on E-A-D leads to changes in product portfolio and space