Journey to Excellence

1. Siemens Power Transmission Journey to Excellence Jack Winters January 2013

2. Today Siemens AG overview 1 Siemens Power Transmission 2 Why bother with EFQM and R4E? 3 Our ‘Journey to Excellence‘ 4 Using the feedback 5 Next steps 6

3. Siemens AG - strong local partner for customers – in more than 190 countries Germany 116,000 76 10.8 32% 15% Americas Asia, Australia 71 20.5 77 14.4 60,000 81,000 Europe, Africa, Middle East (excl. Germany) 19% 17% 23% 28% 27.9 102,000 67 28% 38% Employees Revenue (billions of €) Major production facilities All numbers refer to continuing operations.

4. Our vision: To provide answers to the great challenges of our time New! Healthcare Energy Infrastructure & Cities Industry • Divisions • Rail Systems • Mobility and Logistics • Low and Medium Voltage • Smart Grid • Building Technologies • Divisions • Imaging & Therapy Systems • Clinical Products • Diagnostics • Workflow & Solutions • Divisions • Fossil Power Generation • Renewable Energy • Oil & Gas • Service • Power Transmission • Divisions • Industry Automation • Drive Technologies • Customer Services • Metal Technologies

5. Siemens’ sustainable cities initiative in London • The Crystal explores how we can create a better future for our cities. • Home to the world's largest exhibition focused on urban sustainability. • It reveals the challenges that cities face, and the ways we can reduce their environmental impact using sustainable technologies, many available today. • Based in the Royal Victoria Docks, the centre of London's new Green Enterprise District

6. Power Transmission Division – The link between power generation and distribution

7. What do we do in Siemens Power Transmission? • Transmit and distribute electrical power from the point at which it’s generated to the electricity network operators • Design and build electricity substations for National Grid and other major customers • In Renewables, provide innovative technology to connect the power generated from off-shore wind turbines to the National Grid • Offer sub-sea interconnection technology linking remote • areas with more densely populated areas of the UK • where power demand is higher • Provide transformer products and services to • Siemens and other external customers

8. Why bother with EFQM and Recognised for Excellence (R4E)? • Allows you to fundamentally review how your business works; identifying any gaps • EFQM is a true ‘excellence model’ – it clearly and simply describes ‘what good looks like’ – it’s well tested & proven • As our FD recently commented ‘it enables you to speak the same language as other businesses’ • It creates great benchmarking opportunities – who’s an expert in the area where you need to do better? • External assessors help ensure fairness and credibility - employees are more likely to be honest in their feedback • Excellence awards tells your customers that you are seriously focused on improvement • It also tells existing and potential employees that you are always looking to make this a better place to work The Siemens experience – the businesses that use EFQM tend to have higher customer satisfaction, better employee engagement and increased business profitability

9. Challenges before the assessment…….. • Being assessed as a new stand alone business • Global organisational Power Transmission restructuring challenges • New strategy being developed and rolled out, balanced scorecard and KPIs alignment • Mandated Siemens global approaches and • processes with new restructuring • Transformer business (TR) recently joined the business

10. Why go for a R4E assessment? • We wanted a ‘firm stake in the ground’ – where are we at as a newly formed division? • We needed flexibility as when we were assessed - at the Siemens financial year end to give us improvement clarity for FY13 • We would receive external recognition if our score was above the norm • The feedback analysis doesn’t take long – it’s very credible and practically very useful

11. EFQM summary feedback – Sept 2012 Strengths • Process Management-strength leading to consistent & innovative project delivery • Great reputation for expertise leads to tender success • High & improving customer satisfaction • Large investment in training and development • Recognition schemes and employee benefits • High and improving employee engagement survey perceptions • Clear understanding of the strategy & the need to stay ahead • Actions show working towards being fit and able to deliver the strategy Improvement focus • Being well prepared for future market changes – management skills • Improved CSR approach and measures at key sites needed • Perception skills gaps in new areas are not being addressed • Leaders are not as visible as they were as the organisation grows

12. Our post EFQM improvement approach • Strategy communication - continue to roll out the business strategy and video • aligning our balanced scorecard and KPIs at all levels • Business improvement programme • prioritise and refocus on value added improvements in line with strategy & feedback • Employee feedback • Global engagement survey (GES) / EFQM focus groups and listening groups • Management strategy meeting – feedback from managers on their improvement suggestions feeding into.. • Employee engagement group (EEG) set up to discuss feedback from all above sources and define a few key 2013 improvement actions

13. Recognised for Excellence - 5 Star • 'We are delighted to have won this important award, which is a huge recognition for the work of the UK team and business. It is very important for us to get external endorsement and bring in experienced BQF assessors for a really independent view. This is critical for us to improve and stay at the top of our game. 'The award demonstrates that we are on the right track and we will continue to use the EFQM Excellence Model and external assessments to build an even stronger business to capitalise on the great power transmission opportunities that lay ahead. The Model provides a well developed structure for both short and long term improvement which helps underpin our business excellence culture.' • John Willcock, Managing Director, • Siemens Power Transmission UK

14. Thank you • Questions? • Jack Winters • Head of Employee Engagement & Business Improvement • Siemens Power Transmission • jack.winters@siemens.com • Tel: 07808 823183