Confidential / © Siemens AG 2012. All rights reserved.

Offshore Wind Power as a Pillar of the Energiewende

Siemens AG,Energy SectorErlangen, February 27, 2013

February 2013Page 2

Siemens Energy Sector –Clean electricity for the world

Fossil Power Generation

(E F)

Wind Power

(E W)

Oil & Gas

(E O)

Energy Service

(E S)

Power Transmission

(E T)

Top performance in five Divisions

Additional

200 MWthrough

modernization per annum

World record

800 kVfor direct current

transmission (HVDC)

Deep-sea capable

36 kVseabed power distribution at

depths of up to 3,000 m

World record

60.75%efficiency for

combined cycle power plants

New dimensions

6 MWfor wind turbines

February 2013Page 3

Pioneer Projects in the North Sea

More than 100 km from the coast

Average output of 730 megawatts

Water depth up to 40 meters

Platform with 10,000-15,000 tons

HVDC grid connections in Germany

Normally 20-25 km from the coast

Average output of 350 megawatts

Water depth of 20-35 meters

Platform with 2,000-2,500 tons

AC linksin Great Britain

About 50 links implemented around the globe

Converter substations for subsea cables on land up to now

Siemens is a global market leader in HVDC links

Five times further out at sea

Double the output

Five times as heavy

Twice the water depth

February 2013Page 4

AmrumbankWestNordsee

Testfeld

Pioneer Projects with HVDC Converter Substations

HelWin 1 (576 MW) HelWin 2 (690 MW) BorWin 2 (800 MW) SylWin 1 (864 MW)

Siemens

BorWin 1 (400 MW) DolWin 1 (800 MW) DolWin 2 (900 MW) DolWin 3 (900 MW)

CompetitionMeerwind

1

SylWin

NördlicherGrund

Sandbank 24 Dan Tysk

HelWin

Butendiek

2

UW Büttel

NordseeOst

2

UW Diele

UW Hagermarsch

GlobalTech 1

VejaMate

BorWinBard

UW Dörpen / West

Borkum West 2DolWin

2

1

1

Hohe SeeHe Dreiht

Nordsee 1

BorkumRiffgrund 1

Borkum Riffgrund2

MEG 1

Godewind 2

3RiffgrundWest II

Denmark

Germany

Netherlands BorWin 3 (900 MW) BorWin 4 (900 MW)

To be awarded

One-off pro-duction

BorWin2(800 MW – 300 kV)

SylWin1(864 MW – 320 kV)

HelWin1(576 MW – 250 kV)

HelWin2(690 MW – 320 kV)

February 2013Page 5

Challenges posed by initial HVDC grid connections

Pioneer work

Complexity

Definition of processes (Engineering, Approval / Licensing, Lead Time)

Meshing of processes

Short lead times

Networking of those involved

Long delivery times

Project schedulesExpected project delays (end of commissioning)

BorWin2HelWin1SylWin1HelWin2

2015201420132012

February 2013Page 6

On the way to smooth HVDC grid connections

Experience gained Strong partners

Improved risk management Norming

Augmented project management Standardization

IndustrializationBolstering of resources

Optimized resource management Close intermeshing of processes

Acquired experts Improved coordination between the parties

At present, 6 GW of HVDC grid links ordered in Germany 25 converter platforms needed for Germany’s 25 GW offshore wind power goal by 2030 In Great Britain in Round 3, several wind farms planned at more than 80 km off the coast

Shorter delivery periods

Greater demand for HVDC grid links over the medium term

February 2013Page 7

Siemens is global market leader for offshore grid access (1/2)

5.8 billion euros in new orders received (FY 2012) 6.6 billion euros in revenues (FY 2012)

Siemens Power Transmission Division

The Power Transmission Division has already commissioned 6 offshore grid connections with a total

output of 1.6 gigawatts (GW)

A further 8 offshore grid connections for a total of 4.7 gigawatts have been ordered

February 2013Page 8

Siemens is global market leader for offshore grid access (2/2)

Ongoing projects

10 grid connections with 3.4 gigawattscapacity in AC technology

4 grid connections with 2.9 gigawattscapacity in high voltage direct current

technology (HVDC)

Cable links longer than about 80 km

are only possible with

HVDC

Completed projects

2007 – Lillgrund, SE (110 MW)2008 – Lynn & Inner Dowsing, UK (194 MW)2010 – Thanet, UK (300 MW)2010 – Greater Gabbard, UK (500 MW)2010 – Bard 1, DE (400 MW)2011 – Galopper, UK (140 MW)

Gwynt y Mor, UK (576 MW)Lincs, UK (270 MW)London Array, UK (630 MW)Nordsee Ost, DE (288 MW)

Borwin 2, DE (800 MW)HelWin1, DE (576 MW)HelWin2, DE (690 MW)Sylwin 1, DE (864 MW)

Ongoing projects

February 2013Page 9

Siemens is global market leader for offshore wind turbines (1/2)

Wind Power Division (on- & offshore) 4.9 billion euros in new orders received (FY 2012) 5.1 billion euros in revenues (FY 2012) 11 billion euros in order backlog (Q1 2013)

Siemens Wind Power

Siemens has already commissioned more than 1,000 offshore wind turbines

with a total output exceeding 3.0 gigawatts (GW) They supply 3 million households with clean electricity

A further 1,300 offshore wind turbines with an output of more than 4.5 gigawatts are in order backlog

February 2013Page 10

Siemens is global market leader for offshore wind turbines (2/2)

Completed projects Ongoing projects

1991 – Vindeby, DK (11 x 0.45 MW)2000 – Middelgrunden, DK (20 x SWT-2.0-76) 2002 – Samsø, DK (10 x SWT-2.3-82)2002 – Rønland, DK (4 x SWT-2.3-93)2003 – Rødsand/Nysted, DK (72 x SWT-2.3-82)2003 – Frederikshavn, DK (1 x SWT-2.3-82)2007 – Lillgrund, SE (48 x SWT-2.3-93)2007 – Burbo Banks, UK (25 x SWT-3.6-107)2008 – Lynn/Inner Dowsing, UK (54 x SWT-3.6-107)2009 – Horns Rev II, DK (91 x SWT-2.3-92)2009 – Hywind, NO (1 x SWT-2.3-82)2009 – Gunfleet Sands, UK (48 x SWT-3.6-107)2009 – Rhyl Flats, UK (25 x SWT-3.6-107)2010 – Rødsand II, DK (90 x SWT-2.3-93)2010 – Pori, FI (1 x SWT-2.3-101)2011 – EnBW Baltic 1, DE (21 x SWT-2.3-93)2012 – Walney 1, UK (51 x SWT-3.6-107)2012 – Walney 2, UK (51 x SWT-3.6-120)2012 – Rudong Intertidal, CN (21 x SWT-2.3-101)2012 – Gunfleet Sands, UK (2 x SWT-6.0-120)

London Array, UK (175 SWT-3.6-120)Sheringham Shoal, UK (88 x SWT-3.6-107)Greater Gabbard, UK (140 x SWT-3.6-107)Lincs, UK (69 x SWT-3.6-120)Gwynt Y Mor, UK (160 x SWT-3.6-107)West of Duddon Sands, UK (108 x SWT-3.6-120)Teesside, UK (27 x SWT-2.3-93)Anholt, DK (111 x SWT-3.6-120)EnBW Baltic 2, DE (80 x SWT-3.6-120)Borkum Riffgat, DE (30 x SWT-3.6-107)DanTysk, DE (80 x SWT-3.6-120)Borkum Riffgrund 1, DE (77 x SWT-3.6-120)Meerwind Süd Ost, DE (80 x SWT-3.6-120)Amrumbank West, DE (80 x SWT-3.6-120)Butendiek, DE (80 x SWT-3.6-120)

February 2013Page 11

Siemens is global market leader for offshore wind service (1/2)

2,500 wind power service specialists employed Service for >50% of the installed global offshore base Secures high offshore wind farm availability (≥ 97%)

Siemens Wind Power Service

Siemens actually provides service for more than 1,000 offshore wind turbines

with a total output above 3.0 gigawatts (GW) They supply 3 million households with clean electricity

Service contracts for 800 more offshore wind turbines with an output of more than 3.5 gigawatts are signed

February 2013Page 12

Siemens is global market leader for offshore wind service (2/2)

Completed offshore projects currently under service & warranty agreements

Projects in construction with signed service & warranty contracts

2003 – Rødsand/Nysted, DK (72 x SWT-2.3-82)2007 – Lillgrund, SE (48 x SWT-2.3-93)2007 – Burbo Banks, UK (25 x SWT-3.6-107)2008 – Lynn/Inner Dowsing, UK (54 x SWT-3.6-107)2009 – Horns Rev II, DK (91 x SWT-2.3-92)2009 – Hywind, NO (1 x SWT-2.3-82)2009 – Gunfleet Sands, UK (48 x SWT-3.6-107)2009 – Rhyl Flats, UK (25 x SWT-3.6-107)2010 – Rødsand II, DK (90 x SWT-2.3-93)2010 – Pori, FI (1 x SWT-2.3-101)2011 – EnBW Baltic 1, DE (21 x SWT-2.3-93)2011 – Avedore , DE (1x SWT-3.6-120)2012 – Walney 1, UK (51 x SWT-3.6-107)2012 – Walney 2, UK (51 x SWT-3.6-120)2012 – Rudong Intertidal, CN (21 x SWT-2.3-101) 2013 – London Array, UK (175 SWT-3.6-120)2013 – Sheringham Shoal, UK (88 x SWT-3.6-107)2013 – Greater Gabbard, UK (140 x SWT-3.6-107)2013 – Anholt, DK (111 x SWT-3.6-120)

Lincs, UK (69 x SWT-3.6-120)Gwynt Y Mor, UK (160 x SWT-3.6-107)West of Duddon Sands, UK (108 x SWT-3.6-120)Teesside, UK (27 x SWT-2.3-93)EnBW Baltic 2, DE (80 x SWT-3.6-120)Borkum Riffgat, DE (30 x SWT-3.6-107)DanTysk, DE (80 x SWT-3.6-120)Borkum Riffgrund 1, DE (77 x SWT-3.6-120)Meerwind Süd Ost, DE (80 x SWT-3.6-120)Amrumbank West, DE (80 x SWT-3.6-120)Butendiek, DE (80 x SWT-3.6-120)

February 2013Page 13

Ambitious Offshore Objectives in Europe

Germany Great Britain

10 gigawatts planned by 2020

The largest offshore markets are Great Britain and Germany Both countries are planning rapid and sharp expansion of offshore

wind power

15 gigawatts planned by 2030

38 gigawatts

52 gigawatts

2 gigawatts (Expans. 1&2 ongoing)

Offshore share of power mix by Offshore share of power mix by25%

1 gigawatt (Round 1 completed)

33 gigawatts (Round 3 planned)

9 gigawatts (Scotland & others planned)

7 gigawatts (Round 2 ongoing)

202015% 2030

13 gigawatts

February 2013Page 14

European Offshore Plans (in megawatts)

2,307900750462195Belgium

Online Under construction Consented Planned Total

Croatia 0 0 0 500 500Denmark 874 400 54 4,098 5,426Estonia 0 0 1,000 950 1,950Finland 32 0 768 3,770 4,570France 0 2 108 6,030 6,140Germany 200 2,187 6,993 28,506 37,886Greece 0 0 714 3,687 4,401Ireland 25 0 2,220 1,965 4,210Italy 0 0 683 2,197 2,880Latvia 0 0 200 0 200Malta 0 0 0 149 149Netherlands 247 0 2,732 2,976 5,955Norway 2 0 407 8,915 9,324Poland 0 0 0 8,350 8,350Portugal 2 0 0 476 478Spain 0 0 0 6,809 6,809Sweden 164 48 991 8,276 9,479United Kingdom 2,682 1,939 2,023 45,199 51,843Total Europe 4,424 5,038 19,642 133,753 162,857

Source: EWEA - European Wind Energy Association (February, 2013)

February 2013Page 15

Benefits of Offshore Wind Power

…higher yield

…reasonably priced electricityEEC tariff

…enormous potential80% more capacity

(wind turbines with a total output of 31 gigawatts (GW) currently installed in Germany, further 25 gigawatts offshore

planned by 2030)

...sustainability7 months until positive energy balance (on average an offshore wind farm redeems the energy input for fabrication, transport and installation after this period)

100% CO2-free power generation(even taking into account fabrication, transport, installation and maintenance, CO2 emissions are only 7-12g CO2/kWh)

…more steady yields100% more full-load hours (Offshore, with more than 4,000 operating hours annually at full load possible)

…high level of reliability

More than 2 decades of operation have already been proved by Siemens offshore wind turbine plants

97% availability and better

Markedly higher yield per turbineTypical annual yields

Inland Coastal (onshore) Offshore

2.3 MW turbine 7 GWh 9 GWh –

3.6 MW turbine – 12 GWh 18 GWh

6.0 MW turbine – 23 GWh 31 GWh

…wide acceptance

Offshore wind power means

higher expenditures,

but also… For 12 years at 15 cts/kWh orfor 8 years at 19 cts/kWh

and then: 3.5 cts/kWh(=price level electricity exchange)