 So in the next 15 minutes I'm going to tell you why Siemens created a new sector called infrastructure in cities It's a 17 billion euro sector 90,000 people working globally on it and why we believe that this Sector can create a lot of value for cities and vice versa Just I have to find out how that goes How did you do that? There's only one Okay, here we go so Before we created this new sector and I can tell you this is a lot of effort pulling 90,000 people together in an organization We went out and studied. What is the market? What is the market which Siemens can address? Market for cities and related infrastructure and we come we came back. We studied that we sent out people from 15 of our business units Talking to cities to mayors To decision bodies they came back as a 240 billion euro market just for the new sector only sums up to 25 billion for health care in other areas, which is not in the new sector and it's a market Which is growing faster than the average global GDP Of course, you'll know that that today the top 600 cities in the world which are cities with 750,000 inhabitants and more they're creating already 50% of the global GDP And that cities are still the the largest consumers of energy 40% of energy It's consumed in buildings for example They've also found out that this is a it's just a mega trend urbanization It's really a trend which carries on and it's a trend which we should not fight and there's a reason behind it because if you look at the growth and the GDP growth globally I believe there are basically three drivers number one is population and some areas Population is flattening out number two is efficiency technology and driving productivity basically and number three is urbanization because Urbanization and an urban our environment is the most effective and most efficient way to provide infrastructure for people Is it energy is a transport? Is it hospitals schools? Culture so therefore It's one of the major drivers of the growth of economy And this was also recognized by the kitchen of the newly one of the new leaders that this will also drive the economy of China for the next Decades so therefore a very interesting market for Siemens and Furthermore, we studied and I can tell you meanwhile I'm talking every week or every other week to mayors and we end up all the way in the same discussion and the needs are Really common. It's a kind of a pattern. We first talk about transport how to move people and goods within and City environment, it's a huge challenge for each and every city. Secondly is about energy It's about energy and energy efficiency Some for example when we talked to the mayor of Lagos his only concern was how do I get enough energy into my city? and if you talk to New York the question is how can I get with a limited space even more energy into the city because the city is consuming more and more third one if you go further is about the environment environment That means reduction of CO2 emissions clean air and last one is security believe it or not Security is one of the major concerns and this goes back To one common theme which is also unifying all cities. They are competing against each other on a global basis when we when I'm talking to Recently talked to mayor of Seoul. He was asking how is Seoul performing compared to Singapore Shanghai or or? Beijing for example, so that means they're looking to each other their benchmarking because they're competing for jobs They are competing for attracting talents. This is how cities are moving forward and actually This is a who is who of the portfolio which we are combining in this new sector It's about intelligent intelligent traffic management tolling traffic flow management. It's about smart grits The grits are really taking a very important role in the whole element grits are starting to talk to buildings buildings energy efficiency in buildings But it's also everything which is related to transport public transport in cities So basically the mission of this new sector is really being the pioneering partner for infrastructure in cities clean technology efficient use of resources Connecting informations and this is also about this new area of IT of big data There will be a lot of lot of data coming together in cities Which have to be used in a much more intelligent way than we use it before and of course Infrastructure and automating of infrastructure so I only talked about the challenges and again. This is a common. This is a common pattern which we see in all cities Wait one one point to mention again is waste and water. I skip that Waste and water is another big concern of every city water treatment In some cities the leakage of water is 50 to 60 percent The best by the way benchmarks are something like five or four And waste waste treatment is one of the major concerns So we pulled together a portfolio and we run it in five divisions rail systems It's all about rolling stock mobility logistics is the automation of how we may move people in goods in a city low in medium Voltage and smart grids is the whole grid the connecting the grids and building technology It's not only about energy efficiency in buildings, but it's also about security And safety not only in buildings, but for cities Maybe one interesting point is that some cities they're really going for a kind of a secure city concept Goes back to 9-eleven goes back to terrorist attacks in India where they are the people found out that deploying the emergency Forces is really a key issue that nobody knows really who is going where and why and when and Bring the data together the data of the emergency forces data of the cameras You have to bring it in a one one data fusion center together and creating One set of information in case of emergency you deploy the people in the most effective way Well having said that if you go for a new customer you also have to find new ways how to address the customer So we are building up a city account management and competent center for cities This is a very important element because when we start sending our sales guys talking to cities I mean they go there and just try to sell to the mayor a new train or the latest Propulsion system of Siemens, which is highly efficient. Well, but that's not really how you would address the mayor of London when we talk about he has concerns that how can I my traffic flow is too low or People are complaining that I don't have enough Public transport. So we start from a completely different level. So we have to find people who are really Let's say on a next higher integration level of talking to a city or decision makers or Infrastructure customers this is centered in the center of competence This is a different we are calling also people from the outside world bring this kind of competence and account management So we do have currently it's 60 70 people who are dedicated for one city doing nothing But talking to the city finding out who's who is deciding How is the decision process going? What are the projects and believe me or not? There are easier customers out there to deal with in terms of how to get a decision for An infrastructure spending so Again 17 billion euro turnover 90,000 people globally we have 60 account managers. This is increasing center of competence And one of in the center of competence Which is located in London by the way? It's close to the Darklands close to there to the city airport and I can invite all of you to go there have a look It's called the crystal It's not only office building where we do have our center of competence Experts on city planning on urban planning experts on our technology, but on the other side, there's the largest Exhibition on urban development And it's a very interesting place you can see one of the challenges and what are the technology solutions Which we can provide for cities So I'm benchmarking I talked about benchmarking which is a very important element for cities Not only to see how they do how they perform compared to others But also what they can what they can learn from each other and we we created this together with the economist intelligence unit This green city index if you by the way have an iPad you can download and you can search for green city index It's a very interesting one you can see the results we benchmarked more than 120 cities globally In terms of energy efficiency land use emissions and you name it and I give you some findings there For example Berlin Berlin is one of the best in terms of energy efficiency in buildings They did it with a massive investment in modernizing building converting cold furnace into central heating Increasing the city citizens awareness very important element for all cities, but also working on climate protection Partner of the year price, so We were invited to go into More than 100 buildings our engineers looked at it And we offered a energy performance contracting that means we are bringing the money every investing in these buildings We are sharing the used energy bill And finally it's a win-win-win to win for the city. They reduced The energy bill it's a win for Siemens as good business win for the environment because we were able To cut the CO2 emissions by 36,000 tons Savings of 6 million per annum for the city so they can spend that money in a different way and The investment is 27 million payback time is very interesting give you another example Right away here in London. It's about transportation. We are working this London now since 2005 on really how to upgrade Transport and increase capacity reduce travel time Redu and we introduced also this congestion charging one of the first in the world because it's not you're not very public If you're mayor and you introduce congestion charging, that's not really what makes you more popular yet It solves your problem in terms of transport and of course also this cycle increasing the Pushing people more to use the bike We what we did we made congestion charging as I said the buses here in London run on our GPS space system We equip these buses on top with hybrid Propulsion systems e-car charging system regional trains connecting to the Heathrow all that together and again It's a it's a multi-year program all that together We were able to increase the traffic flow by 37 percent We have 20 percent less traffic going into London and on top 150,000 tons of CO2 emissions What do these stories tell you before one more point look into the future? I was also asked to talk a little bit about what technology What a kind of impact would technology make into the cities in the future? This is a picture of the future we do that for certain areas We did that also one for cities and I give it just a quick walk through number one The grids talk to buildings buildings are more and more prosumers they consume and they produce and It's more and more decentral energy The amount of decentral energy power globally grows by 5.2 percent compared to the central power of 3.5 You have more and more and again the building has to start to talk to the grid Secondly urban and interurban mobility there are 800 to 1000 kilometers of metro lines created every year in China similar 500 to 600 kilometers in India Next one power coming from renewables renewable resources and so Wants to cut one power plant nuclear power plant in using less energy going for more energy efficiency intelligent buildings with zero emissions Which are again buildings who are presuming they also have to have storage capacity decentral energies generation and storage Requires that the grid is a completely different grid than the grid We are talking to right now intermodal transport solutions That means and coming back to one of my priors prior speakers The city have to has to stop talking in silos that somebody is responsible for transport another one for energy another one For whatever it has to be a really a more integrated way of look into the city otherwise we would not Make make the city move into the next generation Intermodal transport solutions is one of the biggest point the cities who understand their transport problems They understand that they have to connect the view of managing the transport on on road and on public and We have interesting solutions there as well and the whole thing will be connected by it There's so many informations generated by so many sensors all over the place cities are going to monitor What's happening the city? How do they measures they put in place to to reduce energy efficiency? Energy consumption increase efficiency how it works that will go to together Into thank you into one data set so well a company a set of organization They set up the new organization We adapt to the city and we are bringing technology to our partner and on the other side of the city And they have also some learnings which I skip because I come to my last slide of just one more minute on the right slide Is what is it what we learned from cities cities who are behaving good compared to those who are let's say following behind and these are The five basic learnings number one holistic approach as I said It's either it needs a strong mayor a person who is really have a vision and knows where to want to drive it It's important and it has to have a long-term planning Eliminate silo thinking I talked about it civic engagement The good the good cities they're coming from the very beginning and know they cannot move it really without getting The people engaged and benchmarking learning from each other Cities are going out their benchmark if they try to find solutions wherever they are in the globe This is one of the second most asked questions Do you have a solution for my city where shements deployed its technology somewhere and they go there they look at it If they like it they take it Secondly wealth is important. It's always good to have a good budget, but in the early stage the right policies make a huge difference Right technology and right technology partnership. It's a long-term partnership. It's not a quick sell We know that it's really making a partnership with the city develop it the relationship over the time Financing of course is an issue It's about cost-efficient solutions But also we do have solutions which we can save money or increase even the return Just talking about pricing for roads and last but not least very important message sustainable cities. They do They create jobs and they increase competitiveness meaning that they are at the end growing faster than the others So thank you very much for your attention