Online Subscriptions C 2 O Partner Enablement Restricted

Online Subscriptions (C 2 O) Partner Enablement Restricted © Siemens AG 2016 Realize innovation.

Agenda • Introduction to Online Subscriptions • Why Subscriptions are Important • Partner Benefits • Subscription Results • Order Process Overview • Assignment of Customer to Partner • Customer Order Process • Commission Structure • Partner. Track Enrollment • Participating with Digital River • Partner. Track Examples • Next Steps Restricted © Siemens AG 2016 Page 2 XX. 20 XX Siemens PLM Software

Introduction to Online Subscriptions Restricted © Siemens AG 2016 Page 3 XX. 20 XX Siemens PLM Software

Online Subscriptions (C 2 O) It’s all about CHOICE! The customer is in control. Perpetual • Best value for investment of more than 36 months • In person sales approach • Targets CAD users with Subscription • Monthly or annual subscription includes ME&S (support) • Low cost of entry • Minimum cash flow impact long-term business need for • Ideal for start ups & very small business (VSB) design • Credit card based, self-service • Ongoing ME&S contract negotiations • Marketing-driven and automated sales approach Restricted © Siemens AG 2016 Page 4 XX. 20 XX Siemens PLM Software

Why Subscriptions are Important? Subscriptions offer the partners a new way of winning new business Business is incremental! • Currently: 70% new business, 30% from existing perpetual customers • Existing perpetual customers buy subscriptions for peak demand What does this mean? • The online store is a new avenue for partners to generate leads with customers who wouldn’t be with us if subscriptions did not exist • Partners can leverage this opportunity to establish a relationship, upsell and/or cross-sell, and promote other products in the long-run • Efficient way to close one-seat deals; partner deals with little “administrative” work and receives instant cash collection • License + maintenance wrapped in one (no “maintenance renewal” negotiations required) Restricted © Siemens AG 2016 Page 5 XX. 20 XX Siemens PLM Software

Results so far … Status July 28, 2016 § 1983 total seats sold § 488 active seats § 966 customers § Growing at net rate of ~7 seats per week Restricted © Siemens AG 2016 Page 6 XX. 20 XX Siemens PLM Software

Subscription Process Overview Restricted © Siemens AG 2016 Page 7 XX. 20 XX Siemens PLM Software

Assignment of customer to partner New customer enters partner web site New customer enters Siemens web site directly = Tracking code Partner commission: Silver = 30% Gold = 35% Platinum = 40% = Existing customers flagged for manual review and assignment Customer automatically assigned to partner One partner in a State Customer automatically assigned to partner Multiple partners in a State Customer selects partner from list Restricted © Siemens AG 2016 Page 8 XX. 20 XX Siemens PLM Software

Customer Order Process – Store Homepage Restricted © Siemens AG 2016 Page 9 XX. 20 XX Siemens PLM Software

Customer Order Process – Choose a Product and Subscription Term, then Add to Cart Restricted © Siemens AG 2016 Page 10 XX. 20 XX Siemens PLM Software

Customer Order Process – Checkout, Create Account or Sign In, Agree to Terms, and add Payment Restricted © Siemens AG 2016 Page 11 XX. 20 XX Siemens PLM Software

Customer Order Process – Order Validation and Partner Selection Note that partner selection will NOT show for orders that come in through partner tracking strings Restricted © Siemens AG 2016 Page 12 XX. 20 XX Siemens PLM Software

Customer Order Process – Download and Activation Instructions Both the customer and the partner will receive a series of emails regarding this new order (see appendix for email examples) Restricted © Siemens AG 2016 Page 13 XX. 20 XX Siemens PLM Software

Commission Structure Details • Silver partners – 30% commission for online sales • Gold partners – 35% commission for online sales • Platinum partners – 40% commission for online sales • • All commissions paid to each partner will be 15% for sale, with the remainder allocated to support (15%, 20%, or 25%) The commission will be the same regardless of whether the online sale came through the partner web site or directly to the Siemens online store and was assigned to the partner. The only exception will be if the online purchase has a tracking code from a partner web site that is outside of the country of the customer. In this case, the partner outside of the customer’s country will receive a sales commission of 15%, and the customer will be assigned to a partner in country who will receive the remainder of the commission Commission revenue counts toward partner quota as license revenue Restricted © Siemens AG 2016 Page 14 XX. 20 XX Siemens PLM Software

Enrolling on Partner. Track Restricted © Siemens AG 2016 Page 15 XX. 20 XX Siemens PLM Software

How monthly subscriptions work with Digital River • Digital River is Siemens’ partner for handling online order processing (including credit, tax and export) Partner places special ad from Siemens Sales tracked from special ad Partner receives sales and support commission from each sale Restricted © Siemens AG 2016 Page 16 XX. 20 XX Siemens PLM Software

Behind the scenes Digital River • “Seller of record”, i. e. , reseller • Address verification • Fraud detection • Denied parties check for export compliance • Digital River order created • Collect user taxes and pay user taxes • Digital River handles payment processing • Customer to Digital River • Digital River to Siemens • Direct payment of commissions from Digital River to partners Siemens PLM Software • SAP order created • Customer sold-to record in SAP • Activation code • Download link (revenue recognition) • GTAC web key account Restricted © Siemens AG 2016 Page 17 XX. 20 XX Siemens PLM Software

Participation in online sales made easy § Efficient Contracts, Processes and Tools • Online agreement with Digital River (“click through”) including program terms with Siemens PLM Software • Online Portal (Partner. Track) for marketing “creatives” with tracking code for sales and trials • Digital River handles payment processing • Direct payment of commissions from Digital River to partners § Partners benefit from: • Incremental business and up-sell opportunity (subscription to perpetual) • Increased awareness and demand generation • Defense against competitive offers (Subscription, Cloud) Restricted © Siemens AG 2016 Page 18 XX. 20 XX Siemens PLM Software

Partner enrollment Preliminary accounts will be created in Partner. Track for partners defined by channel management as eligible for the program. These identified partners will be sent an invitation to enroll, with the following instructions: Go to https: //partnertrack. plm. automation. siemens. com/ to login: Username: contact. name@partner. com Password: xx 00 xx 1. Log into the Partner. Track system using the above credentials. 2. After login, change your password (you will be prompted to do this). 3. Accept the terms and conditions agreement launched after login. Note that acceptance of the terms and conditions must be made by an official company employee. 4. Enter your company contact information. 5. Enter bank information (note the use of this information is to be used to deposit commissions into your account) 6. Complete the required tax form (needed to receive commissions) Once your Enrollment has been completed and approved, we will schedule another call to walk you through the features and tools of your Partner. Track account Restricted © Siemens AG 2016 Page 19 XX. 20 XX Siemens PLM Software

Next Steps - Timeline Task Responsible Timeframe Partners complete registration on Partner. Track Partners Week of Aug 8 Confirm partners have completed registration & communicate to team Siemens End of Aug 8 week Online marketing and Partner. Track training for partner Siemens + Partners complete modification to web sites Partners Marketing activities and go live announcement Siemens Update Siemens trial system for additional countries for automatic partner assignment Siemens Update online store to include additional countries Siemens & Digital River Aug 18/19 Go live Sept 1 Restricted © Siemens AG 2016 Page 20 XX. 20 XX Siemens PLM Software

Appendix Restricted © Siemens AG 2016 Page 21 XX. 20 XX Siemens PLM Software

Detailed Timeline Task Responsible Make request to add partner Channel Manager T - 30 Schedule partners to attend enablement training Opps, Zone Mktg T – 25 days Deliver Partner enablement training Opps, Zone Mktg T – 25 days Define products (Solid Edge &Femap) per partner & country Channel Manager T – 25 days Invitation to Partner to sign up on Partner. Track Opps, IT, Digital River T – 25 days Partners complete registration on Partner. Track Partners Confirm partners have completed registration & communicate to team Opps T + 5 days Online marketing training for partner Zone Marketing T + 10 days Partners complete modification to web sites Date T T+ 20 Market announcement by partner Channel Manager T+25 Other marketing activities Channel Manager T+25 Confirm partners are ready for store to go live Channel Manager T+25 Update Siemens trial system for additional countries for automatic partner assignment IT T+25 Update online store to include additional countries Page 22 XX. 20 XX IT & Digital River Restricted © Siemens AG 2016 T + 30 days Siemens PLM Software

Email examples Restricted © Siemens AG 2016 Page 23 XX. 20 XX Siemens PLM Software

Order Confirmation Restricted © Siemens AG 2016 Page 24 XX. 20 XX Siemens PLM Software

Download and activating Solid Edge Restricted © Siemens AG 2016 Page 25 XX. 20 XX Siemens PLM Software

Download and activating Solid Edge (cont. ) Restricted © Siemens AG 2016 Page 26 XX. 20 XX Siemens PLM Software

Notification to Customer of Support Partner Restricted © Siemens AG 2016 Page 27 XX. 20 XX Siemens PLM Software

Notification to Partner of Order Assignment Restricted © Siemens AG 2016 Page 28 XX.

Notification to Partner of Order Assignment (cont. ) Restricted © Siemens AG 2016 Page

Notification to Partner of Trial Assignment Restricted © Siemens AG 2016 Page 30 XX.

Notification to Partner of Trial Assignment (cont. ) Restricted © Siemens AG 2016 Page

Webkey Email (Getting the most from your recent Siemens PLM order) Restricted © Siemens AG 2016 Page 32 XX. 20 XX Siemens PLM Software

GTAC Welcome Email Restricted © Siemens AG 2016 Page 33 XX. 20 XX Siemens

Welcome - How to Get Started with Your Solid Edge Trial (Siemens header at top of email not copied here) Restricted © Siemens AG 2016 Page 34 XX. 20 XX Siemens PLM Software