SRE Profile 2018 - Siemens · PDF fileFinance CF. Corporate Services ... real estate expertise...

SRE Profile 2018Global Services Real Estate (GS SRE)

siemens.com/realestate© Siemens AG 2018

© Siemens AG 2018February 2018 GS SRE

Siemens –Global presence

Europe (excluding Germany), CIS3, Africa, Middle East Share of total

worldwide

Revenue1 €32.2 billion 39%

Employees2 113,000 30%

Germany Share of total worldwide



Americas Share of total worldwide



Asia, Australia Share of total worldwide



1 In FY 2017; by customer location2 As of September 30, 2017. With beginning of FY 2018 part time employees are included to the full extent. Prior-year information is presented on a comparable basis 3 Commonwealth of Independent States

All figures refer to continuing operations.

Close to customers all over the world


Siemens – Corporate structure –Customer-focused presence

Power and Gas (PG)

Energy Manage-ment(EM)

Building Techno-logies(BT)

Mobility(MO)

Process Industries and Drives(PD)

Siemens GamesaRenewable Energy

Financial Services(SFS)

Digital Factory(DF)

Siemens Healthi-neers

Separately managed

Divisions

Power Generation Services (PS)

Managing Board

Corporate Core

Corporate Deve-lopment CD

Governance and Markets GM

CommunicationsCC

Legal and Com-pliance LC

Human resour-ces HR

Corporate Tech-nologies CT

Controlling and Finance CF

CorporateServices GS IT GS SCM GS ECC GS BPS GS SRE


Corporate Real Estate Management at Siemens –Our mandate

Siemens Real Estate …… is the real estate entrepreneur of Siemens and has the responsibility

for the entire real estate portfolio and all the related tasks… responsible for ensuring uniform and comprehensive management of real estate at Siemens

and assumes the governance role for these matters

Location consolida-tion and selection

Real estate investments, divestments and external leases

Space optimization and effi-ciency

Corporate Architecture

Building standards and sus-tainability

New way of working –Siemens Office

Company internal real estate rent and service agreements


Siemens Real Estate –In a nutshell

Key figuresFiscal year 2017

“SRE drives Siemens’ success as a trusted business partner through real estate and its related services.” 2.5

Sales in € billion

187Net profit in € million

~3,200Employees worldwide

~6.1Assets under Ma-nagementin € billion

13.9Building space in m² million

• Support the Divisions and Business Units in developing their market position through customer-specific real estate strategies and solutions

• Optimized use of resources and standards• Global real estate expertise allied with local market knowledge


The SRE organizational setup –Based on guiding principles

Separation of portfolio, regional asset mgmt. and local asset/pro-perty mgmt.

Regionalization of Headquarters along business-related functions

Maximum level of standardi-zation

Pooling of competences and expertise related to real estate tasks

Bundling of back-office and support functions

Ensuring costu-mer proximity via local know-ledge and capa-bility to act

Clear, subsidiary task split with Siemens AG-wide real estate governance in Global HQ (= global guidelines and standards, overall responsibility) and regional business responsibility in Regional HQ


Corporate Real Estate Management at Siemens –A comprehensive, integrated approach

Optimize space and resources Ensure appropriate space utilization

• Ensure long-term optimization of Siemens’ real estate portfolio

• Implement consolidation measures• Reduce volume of unused space and locations• Focus on strategically important locations

• Ensure that space is used as eco-friendly as possible• Implement global workplace concepts

(Siemens Office, Coworking)• Consider country-specific aspects

Generate cost savings Optimize investments and divestments

• Protect natural resources with measures including

• Sustainable building design (Construction Excellence) and optimized lifecycle costs (e.g. facility management, maintenance)

• Focus on energy efficiency and CO2 reduction (keyword EEP² = Energy Efficiency Program)

• Assess cost efficiency of investment and divestment decisions from the perspective of the Divisions and Siemens as a whole

• Consider economic factors associated with real estate business: Capital tie-up, market environment, sustainability


SRE Overview –SRE’s Value Add from a Corporate View

Rentable Spacehandled by SRE thereof ~80% Divisions

Net Rent+OpExof Divisions stable

Annual SAG Capex handled by SRE

Maintenancevolume p.a. managed by SRE, 2,000 projects > €50,000

13’9m² €1’’6

~30%

€410’

Vacancy Ratedeclining further, despite of challenging environment

~4%

Savingsgenerated by SREuntil FY 2017

Real Estate/Total AssetsSiemens always below Ø of competitors

>€500’ <3.5%

EEP Volume spent as contributionto Siemens’ carbonneutral goal

Portfolio Reorganization in 5 years

~30%

€35’

Assets under Managementthereof Leaseholds of 2’’0

€6’’1 Capex

DisposalsCash Balancing (€)

IBIT Contribution (€)

2007 2009 2011 2013 2015 2017 ∑

+2’’4

2007 2009 2011 2013 2015 2017 ∑

+4’’0

-4’’2


Business model –Proven business responsibility

Pricingmodel

• Market-led approach for marketable office space

• Cost-led approach for industrial space

Profit-and-loss responsibilityfor the real estate business managed by Siemens Real Estate

Separation of real estate business from Siemens’ operating business –both sides to concentrate on their respective core business

Lessor-lessee modelLeasing agreements are signed between the Siemens business units and Siemens Real Estate for all the facilities in SRE’s portfolio

Real estate risks (portfolio changes, vacancy etc.) reside with SRE


Service spectrum –The full range of real estate management services

Strategic portfolio management

Sale/purchase of space

Asset and property management

Sustainability strategy

Leasing and letting

Site selection

Planning and construction of offices & production facilities

Financing concepts

Location concepts and site development

Facility management/facility services

Workplace concepts (Siemens Office, Coworking)


Asset and Property Management –Some key figures

>54’ (€)

Generated by OpEx and space reductions in FY17

Savings

840,000 (m²)

Implemented worldwideSiemens Offices

New leases and Carve in

~100New External Leases p.a.

Regional split: GER (1,980), EMEA (1,190), AA (430) and AM (700)

No. of Maintenance Projects

4,300Managed by SRE,thereof € 70’0 capexin building stock

410’ (€) Maintenance Volume

2,400External Lease ContractsLease in ~1,550Lease out ~850

682’ (€)

Under managementOpEx

1.2%By active portfolio mgmt. in FY17OpEx reduction

23 FM providerTop 15 countries

90’ (€)


Asset and Property Management –Working environment development since 2005

Implementation global workplace concept Siemens Office –New way of working

Implementation of first workplace concept in Germany:WPM – Workplace Management

Pilot Project “Working Environment” –GS Digitalization Initiative

Develop global IT office conceptfor agile scrum workstyles

First study agile workplace concept/ IT office for software developers

2005 2010 2015 FY 20182017

Set-up global rollout strategy for cowor-king cooperation models

First pilot project COWORK – Siemens Real Estate in Munich


CommunityA community manager, great events and good coffee …“Build your network –be a part of the community!“

SpaceHighly creative and flexible space• Workshop areas• Meeting rooms• Zones for retreat

and focused work• Event space

Asset and Property Management –Why coworking spaces at Siemens?

PeopleOpen minded, creative people“Work together to make a difference.“

WorkWork collaboratively, exchange ideas with others and enjoy spontaneous communication.“Use our writable walls, pin boards and media equipment for collaboration.“

Flexible “Pay per use Model”Small scale renting – buy a membership or book a room when needed.

The plus for Siemens“New ways of working to support your way of new thinking!“

© Siemens AG 2018February 2018Page 13 GS SRE


Asset and Property Management –Close to the customer

Economical and reliable operation of more than 2,000 office, warehouse, production and special real estate sites as well as service provisioning

Development of solutions for optimum use of locations (change, addition, reduction, relocation)

Local service provider management and project execution

The Asset Management Units together with the Location Managers bear responsibility for real estate at the locations

High customer focus as well as local market and real estate know-how


Holistic approach

Digitalization – Development of the digitalized Corporate Real Estate Management

Three steps

VisionDigitalization of the entire real estate value chain

Digital CREMTransformation of business model

Implemen-tation

Digital Transformation touches on all fields of

new productsnew services

customerfocus

existing products and services

Data

IT infrastructure

People

Competencies

Mindset

Leadership

PeopleFocus on three aspects

Digital prototypesMethods and technologies with the potential to change our business area

Develop-ment

Digital foundationBase of a fast digitalization

Setup

Business Technology People

RealizationFrom a digital base to prototypes to a holistic digitalized Corporate Real Estate Management


Enabled by BIM, sensors, artificial intelligence Powered by platforms and data. Driven by people

Digital CREM –Smart real estate data drive efficiency and productivity

TenantOwner

Operator

SRE Data Repository

Real Estate Life Cycle Data

10010111

010011

100101111000

10010111

1001010011

100101

10

10010111

0100

1001

1001011101

10010100

10010111

11001001

Building

SpaceWorkplace

High asset and system performance

PortfolioIndividual work-place control and personalized comfort

Savings through smart building technology

Intelligent digital Portfolio Management


It’s all about data –Collect + Connect + Capitalize our data

Collect

Connect

Capitalize

Gathering of BIG DATA on a

common platform like e.g. MindSphere

DigitalCREM

Generation of Smart Data

Digi Know How= Ecosystem and SkillsPrototypes Existing Data Sources

Identify Projects and Prospects

Identify need of knowledge and get connected

Identify Data sources

Digital FoundationBuild up Investigate

Evaluate Judge

Analyze and convert

+ UseCases

Our GoalsGeneration of smart data …• creates transparency• enables better informed decisions• shows interdependencies• opens new business opportunities• simplifies processes and allow for cost savings

Current Focus• Claim ownership of static and dynamic

data from our assets • Ensure data quality • Connect data from different systems,

find patterns and correlations

Ongoing Process• Push prototypes• Extend exchange and cooperation with existing

partners and identify new ones • Foster digital education in all areas

One

Glo

bal /

Pla

non

Bui

ldin

g In

form

atio

n M

gmt.


PurposeDevelopment of sustainable building solutions for Siemens customers and the implementation thereof quick cost-efficient standardized

Asset ClassesOffice Light Industrial Heavy Industrial

ProjectsNew construction Conversions Interior work

BasisPurely a management organizationMarketable and production-oriented standards

ToolsStandards KPIs Benchmarks

Volume100 construction projects with 1 million m² over last 5 years Investment volume €1.2 billion

Construction –Overview


Building Solutions –Fields of action

Development• Feasibility study• Urban concept• Master planning• Profitability calculation

Internal support Business Administration/Supply Chain Management/Legal/EHS/Quality/Management/Communication

External suppliers Planning/Project Management/Construction

CorporateArchitecture• Design controlling• Architecture competitions• Key values

• Functionality• Cost efficiency• Sustainability• Design

Construction• Building typologies• Project Management• KPIs/benchmarks• Risk management• BIM

Sustainability• Lifecycle approach• LEED certification• Siemens products• Recycled materials• CO2 neutral program


Standardization –Construction Excellence

ConsistentEfficientQuickDigital

Building Solutions

Building typologiesAdvance planning

Cost Tool

Cost estimation based on space requirements

Procurement Strategy

Predefined award and purchasing strategy

Selected Partner

Master agreement partner for planning and PM

Lean ManagementOptimized processes

Classified plans


Heavy machining Machining Electrical products Railways Wind power

Construction –Construction Excellence Typologies

Munich, GER

Advanced OfficeExceptional

Forchheim, GER

Business OfficeAdministration

Erlangen, GER

Compact OfficeProduction related

Office – 3 Types – based on market levels

Factory – 5 Types – based on production process requirements


Corporate Architecture –A unified brand appearance is the foundation of a strong brand

CorporateArchitecture

Siemens

SRE


Building Information Modeling (BIM) –Basis for digitalized CREM

Standardization BIM CREM

Collaborative working

Digital twin

Single sourceof truth

For the entirelife-cycle

Asset management

Sales and purchase

New construction

Facility management

Asset Information Management along the whole life-cycle


Sustainability –Creating value in harmony with mankind and nature

Building for society Committed to continuous improvement

Down with CO2 emissions

From energy consumerto energy prosumer

Life-cycle thinking Meeting sustainabilitystandards

We use Siemens technology

Up with energy efficiency

Providing healthyworkplaces

Sustainability strategy • Life-cycle approach for planning

and cost efficiency• LEED® certification 60 projects

with 1,000,000 m²• Energy consumption -25% compared

to local standard• EEP, energy-saving measures in portfolio• DES, Distributed Energy Supply

for new construction projects• Siemens products• Business and technology

partnership with BT• Portfolio optimization

by location concepts• Recycling material


Siemens Carbon Neutral Program –SRE in the driver seat of 2 modules

Siemens strategy to become carbon neutral

Energy Efficiency Program (EEP²) Distributed Energy Systems (DES)

€100m Investment• On-site energy generation,

storage and management• 10% on site power generation aimed globally • <15 yrs. Return on invest• Photovoltaic in existing portfolio

-50% -100%

Directly linked to real estate assets

2.2 million tons

Purchase Green Energy

Reduce Fleet emissions

Leverage Distributed Energy Systems

Drive Energy Efficiency Program

Four levers

2014 2020

Heating/Pro-cess heat

2030

Electricity

FleetOther

€20m OPEX reduction

’80t CO2 reduction ~5 yrs. Returnon invest


Performance –580.0 m² construction volume managed by SRE

Office/R&D120’0 Invest227.0 m²

Industry177’0 Invest 353.0 m²


Performance –Office projects around the world

Abu Dhabi Masdar UAERegionales HQOffice – 12,000 m²

Milano ItalyRegional CompanyOffice – 27,000 m²

Zug SwitzerlandBuilding TechnologiesOffice – 17,500 m²Production – 23,100 m²

Oslo NorwayRegional CompanyOffice – 18,000 m²

Rio de Janeiro BrazilPower and Gas R&D – 8,300 m²

Shanghai ChinaRegional CompanyOffice – 17,500 m²

Munich GermanySiemens HeadquartersOffice – 45,000 m²

Forchheim GermanyHealthineersOffice and R&D – 45,000 m²


Performance –Factory projects around the world

Dammam Saudi ArabiaPower and Gas Production and Office – 12,100 m²

Hull United KingdomSiemens GamesaProduction and Office – 38,600 m²

Flanders USAHealthineersProduction and Office – 13,200 m²

Cuxhaven GermanySiemens GamesaProduction and R&D – 60,000 m²

Wegberg GermanyMobilityTrain configuration halls –15,000 m²

Yizheng ChinaProcess Industries and Drives Production and Office – 87,000 m²

St. Petersburg RussiaPower and GasProduction and Office – 20,700 m²

Berlin GermanyEnergy ManagementProduction and Office – 22,000 m²


Performance –Siemens Campus Erlangen

• With the Siemens Campus Erlangen, the Siemens site in the south of the city will change from being a closed-off location to becoming a new, open city district

• The modular completion of the Siemens Campus Erlangen will take place over the next few years

• Total area 540,000 m² • Planned office and

laboratory area 320,000 m² • Module 1: Start of construction 2016,

mid-2017 official opening of Siemens Professional Education in the first building of the Siemens Campus, completion 2020

• Module 2: Start of construction 2019


Real estate portfolio –13.9 million square meters of building space across 100 countries

Americas1.0 m2

2.1 m2

1.7 m2

1.3 m2

Office

Industrial

Owned

Leased

3.1 m²

Germany2.3 m2

2.7 m2

3.3 m2

1.7 m2

Office

Industrial

Owned

Leased

5.0 m²

Owned

Leased

EMEA1)

1.6 m2

1.9 m2

2.0 m2

1.5 m2

Office

Industrial

3.5 m²

Asia/Australia0.7 m2

1.6 m2

1.6 m2

0.7 m2

Office

Industrial

Owned

Leased

2.3 m²

Thereof Asia/Australia HCRE0.1 m2

0.1 m2

0.1 m2

0.1 m2

Office

Industrial

Owned

Leased

0.2 m²

Thereof Americas HCRE0.2 m2

0.3 m2

0.3 m2

0.2 m2

Office

Industrial

Owned

Leased

0.5 m²

Thereof Germany HCRE0.2 m2

0.2 m2

0.3 m2

0.1 m2

Office

Industrial

Owned

Leased

0.4 m²

1 Including space EMEA HCRE


Real estate portfolio –2,000 sites – Every one of them unique

Office Industrial

Large Small

Historical Modern

Train test track Burner test center

650 Industrial sites,e.g. Charlotte, United States

350 sites <250m²,e.g. 120 m² Jersey,Great Britain

2016, Corporate Headquarters,Munich, Germany

R&D Gas turbinesLudwigsfelde, Germany

1,350 office sites,e.g. RHQ Beijing, China

60 sites>50,000 m²,

e.g. 300,000 m²Munich-Perlach, Germany

17th century,Castle Finspong,

Sweden

28 km trackon 420,000 m²

site,Wegberg-Wildenrath,

Germany

Type of real estate

Size of site

Age of building

Special real estate


SRE worldwide –Four Regional Areas, 23 Asset Management Units (AMU)

US North-East US SoutheastCanada

US West and CentralMeso

AmericasSouth America

GermanyNorth/WestBerlin/EastSouthwest/Middle

North BavariaSouth Bavaria

Southwest Europe

Southeast Europe

Nordic

United Kingdom/IrelandMiddle East

Czech Republic, Turkey, Africa

Russia, Central Asia

France

EMEA

ASEAN/PacificGreater China

India, Bangladesh

Asia, Australia

Belgium, Maghreb


Norwood

Sacramento

WalpoleMishawaka

Newark

Buffalo Grove

Charlotte

Richland

Hoffman Estates

Ciudad Juarez

Queretaro

Monterrey

WendellRural Hall

SouthavenAlpharetta

Plainfield

Guadalajara

Grand Prairie

Olean, Wellsville, Painted Post

New Kensington

Orlando

Mount Vernon

Regional Area Americas –Developing an ownership culture

Project highlights FY 2017 • Houston Memorial

Drive Expansion• Pacific Concourse Sale/

Lease Back• Palo Alto, CA next47 New office• Grand Prairie, TX EM Consolidation• Costa Rica, FSS New Office• Princeton, CT Renovation• Charlotte, PL MindSphere

New office• Lima, Peru Office Expansion

Important Projects FY 2018• Mt. Pleasant, PA New

PS Service Center• Tampa, FL New Blade

Manufacturing JV• Princeton, NJ Distributed

Energy System• Buffalo Grove,

IL DigiSpace Pilot• NYC, NY New Mobility

Headquarters Space • Sacramento, CA MO

Production Expansion• Toronto, Canada

Trench Consolidation

• Six Asset Management Units (AMUs) across 16 countries

Major industrial locations only 1 Incl. HC and space managed by Divisions

Tenjo

Jundiai

Headquarters Orlando, Florida, USAEmployees 200Rentable space1 3.1 million m²Locations 630Sales €381 million

Divisions91%

PD HC PG Corpor. & others EM BT MO DF


Tianjin

Aurangabad

Beijing

Changzhi

NashikBaroda

Kalwa

Kharagpur

Chengdu

Tiantai

Nanjing

Huludao

Jinan

Wuhan

GuanzhouShenzhen

ShanghaiYizheng

Wuxi

Shenyang

Suzhou

Goa

Hangzhou

Regional Area Asia-Australia –Customer-centric and adaptive

Project highlights FY 2017 Customer-centric with Portfolio Efficiency• Space Optimization Initiative in

China resulting in significant space savings for customers

• ~80.0 m2 of vacant space leased-out to various external tenants

• User satisfaction surveys with scores 7.6 to 9.1 (on a scale 1 to 10)

Sustainable and People oriented• 18 LEED certified buildings across

the Region• Solar Plants on factory roof-tops

in India and China are generating >3MW

• Various measures from Energy Efficiency Program (EEP) implemented

• Indoor Air-Quality Campaign China protecting 10,000+ employees from outdoor air pollution

Modern Offices and Factory Extens.• Market comparable space concepts

& design – with agile and SCRUM spaces, and CoWorking in-corporated in Siemens Compound

• New and refurbished offices in IN, CN, VN, KR, SG, MY.

• Factory Extensions in Chengdu, Guangzhou, Wuhan, Lingang, Aurangabad, Kalwa

• 60,000 users in over 20 countries• Business adjustments continuously require alignment of real estate portfolio• In 2017 significant projects concluded, like the Location Concept Greater Mumbai,

the India Rehabilitation Program, the Space Optimization in China, and Distributed Energy Systems projects

Major industrial locations only1 Incl. HC and space managed by Divisions

Headquarters Shanghai, ChinaEmployees 740Rentable space1 2.3 million m²Locations 370Sales €324 million

Divisions84%


Cilegon


Zug

Finspang

Lincoln

WeizLinz

Mohelnice, Drasov

Frenstat

Graz

Wien

Letohrad

Newcastle

Brno

Budapest

Haguenau

Subotica

Oxford

Kartal

Grenoble

GebzeCornella de Llobregat

Hengelo

Le Havre

St. Petersburg

Chippenham Poole

Regional Area EMEA –Exceeding customer expectations

• Highly diverse region with 17 Lead Countries and 70 assigned countries • 775 locations managed by 9 Asset Management Units• In FY 2017 in total 14 new constructions, 9 disposals

and several major external renting projects will progress• 36 Location Concepts to support Business Units to reach new markets,

enable growth and react on changing market conditions


Headquarters Munich, GermanyEmployees 550Rentable space1 3.5 million m²Locations 775Sales €627 million

Divisions77%


New working environment Implementing Coworking spaces in several metropolitan areas like Paris, Istanbul, Milano, Greater Brussels and Masdar

Lighthouse ProjectsNew Regional headquarters in Milano and new BT headquarters in Zug will be opened in this Fiscal Year

Sustainability projects ensure cost and energy savings For instance, in Midrand, South Africa:• The location will be equipped with

photovoltaic systems, that are connected by a micro grid controller

with the local power grid and will cover some 40% of the power consumption

• A SieStorage system will counteract the regular power cuts in and avoid peaks in demand

• A monitoring system connected to MindSphere will be implementedto control and forecast building conditions and optimize asset use and consumption

Wigan


Krefeld

Berlin

Rastatt

MülheimDuisburg

Görlitz

Nürnberg AmbergKarlsruhe

Voerde

Bocholt

Braunschweig

München

WegbergMarburg

Erlangen

Regensburg

Kemnath

Erfurt

Kirchheim

FrankfurtBad Neustadt

Penig

RuhstorfTübingen

Chemnitz

Cham

Ludwigsfelde

Fürth

Regional Area Germany –Creating added value for our customers

Our lighthouse projects• Mobility: RRX Traindepot, Dortmund• Siemens Campus Erlangen• Siemens Healthineers, office and development buildings Forchheim• Wind Power, Wind factory Cuxhaven

We create added value by …• Cutting space costs

(e.g. rental, operating costs, vacant spaces) • Implementing innovative office concepts (Siemens Office/Coworking)• Implementing and consolidating location concepts

• In FY 2017 GS SRE Germany will invest around € 150 millionin the provision of offices, manufacturing facilities and company restaurants (70 in total)


Headquarters Berlin/Munich, GermanyEmployees 1,600Rentable space1 5.0 million m²Locations 280Sales €933 million

Divisions76%


SRE Profile 2018 - Siemens · PDF fileFinance CF. Corporate Services ... real estate expertise...

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