© PSI AG 2014

PSI-Presentation Sector Conference Frankfurt, 09.09.2014

© PSI AG 2014Page 2

Safe-Harbour-Statement

This presentation contains forward-looking statements that are subject to risks and uncertainties. Such statements reflect current views of PSI AG with respect to future events and results. Actual results may vary materially from those projected here, due to factors including changes in general economic and business conditions, changes in currency exchange, the introduction of competing products, lack of market acceptance of new products, services or technologies and changes in business strategy. PSI AG does not intend or assume any obligation to update these forward-looking statements.

© PSI AG 2014Page 3

PSI – Process Control and Information Systems

PSI is a leading supplier ofcontrol system software solutionsfor energy utilities and industry.

© PSI AG 2014Page 4

Metals

Assembling

Logistics

ProductionManagement

Gas/Oil

Energy trading/sales

Electrical energy

EnergyManagement

InfrastructureManagement

Public transport

Public safety

Traffic

PSI segments and vertical markets

2013

: 31

.3 m

illio

n EU

R s

ales

, 46

2 em

ploy

ees

2013

: 84

.1 m

illio

n EU

R s

ales

, 67

3 em

ploy

ees

2013

: 61

.0 m

illio

n EU

R s

ales

, 55

7 em

ploy

ees

© PSI AG 2014Page 5

Selected PSI customers by segments

EnergyManagement

ProductionManagement

InfrastructureManagement

© PSI AG 2014Page 6

New orders and order backlog 2009-2013

New Orders 2013 with 185 million EUR 2% below last years levelBook-to-bill-ratio: 1.05Order backlog 2013 with 118 million EUR stableOrder coverage: approx. 8 months

150

177 174

188 185

97108 112

118 118

2009 2010 2011 2012 2013

Auftragseingang

Auftragsbestand am 31.12.

IFRS in million EUR

© PSI AG 2014Page 7

3rd party productsServicesLicense revenuesMaintenanceEmployees

Sales revenues analysis 2009-2013

Group sales revenues decline by 2.5%

License revenues grow by 12%

Maintenance grows by 6%

Service revenues reduced

+100 employees in export countries

42.940.635.333.330.9

8.7 9.814.2

17.4 19.4

91.8

85.9

103.6103.3

104.4

22.218.5

16.712.0

21.51,692

1,5911,491

1,4221,411

0

30

60

90

120

150

180

2009 2010 2011 2012 20130

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2.000176.3

147.0158.7

169.5180.9IFRS in million EUR employees

© PSI AG 2014Page 8

61.062.368.9

84.189.4

78.6

31.329.222.1

176.3180.9

169.5

2011 2012 2013

Energy managementProduction managementInfrastructure managementPSI Group

Sales revenues 2011-2013 by Segments

Energy management stable after decline in 2012, but still affected by the energy transition

Production management with lower sales revenues due to blocked capacities in logistics

Infrastructure management grows mainly in exports

IFRS in million EUR

© PSI AG 2014Page 9

Earnings 2009-2013

8.0

16.9

14.613.9

11.4

7.8

9.5

10.7

12.9

4.2

6.9

8.7

11.3

3.1

7.9

6.67.0 7.4

9.4

0.4

2009 2010 2011 2012 2013

EBITDAEBITEBTGroup net result

EBITDA declines by 53%

EBIT declines by 67% to 4.2 million EUR

Net results additionally burdened by tax effect falls to 0.4 million EUR

IFRS in million EUR

© PSI AG 2014Page 10

EBIT 2011-2013 by Segments

3.24.0

0.6

5.5

1.4

6.6

3.34.3

3.1

-1.2-1.3-2.0

10.7

4.2

12.9

2011 2012 2013

Energy managementProduction managementInfrastructure managementReconciliationPSI Group

Energy management with change to product release and still affected by the energy transition

Production management affected by pilot project in logistics

Infrastructure management with weaker result in the public transport business

IFRS in million EUR

© PSI AG 2014Page 11

Sales revenues and EBIT by Quarters 2009-2014

-4

-2

0

2

4

6

EBIT

IFRS in million EUR2009 2010 2011 2012 2013 2014

2009 2010 2011 2012 2013 20140

10

20

30

40

50

60

Sales revenues

© PSI AG 2014Page 12

30,329,730,7

39,143,243,7

14,814,811,2

84,287,7

85,7

1st Six Months 2012 1st Six Months 2013 1st Six Months 2014

Energy managementProduction managementInfrastructure managementPSI Group

IFRS in million EUR

Sales revenues 1st Six Months of 2014 by Segments

Energy management with slight growth

Production management with growth in metals and assembling, restructuring in logistics and lower sales in mining

Infrastructure management with stable development in Southeast Asia and Poland

Overall decline of 4 %

© PSI AG 2014Page 13

1,4

0,6

1,71,9

1,1

3,0

1,7

1,10,9

-0,7 -0,6 -0,6

2,8

3,5

5,1

1st Six Months2012

1st Six Months2013

1st Six Months2014

Energy managementProduction managementInfrastructure managementReconciliationPSI Group

EBIT 1st Six Months of 2014 by Segments

IFRS in Millionen Euro

Energy management with strong result in gas/oil and recovery in electrical energy

Production management with good results in metals, important license orders in automotive and restructuring cost in logistics

Infrastructure management with lower results in Southeast Asia

© PSI AG 2014Page 14

Research and development

million EUR

19.817.9

16.216.0

12.1

2009 2010 2011 2012 2013

Investments in products 11% higher

In energy business expentitures for control system release and virtual power plants, in logistics combination of simulation and transport management system into a new integrated system

Rollout of group-wide software platform

© PSI AG 2014Page 15

Pilot project transport management system

Logistics network optimisation and operative transport control in one systemSaves up to 10% of transport costs and emissions

© PSI AG 2014Page 16

Pilot project rail electricity SBB

Two large control systems for high voltage and overhead linesNew rail electricity functionsNew user dialogues based on the new group technology platform

© PSI AG 2014Page 17

Future topic Industry 4.0

Self organising, flexible productionInternet paradigms and methods used for the production of goodsProduction islands instead of assembly linesSmart objects (intelligent work pieces) find their way through the productionAutomation markup languageJust-in-time with artificial intelligenceHigh definition supply chain managementLogistics network simulationProduction capacity simulation

© PSI AG 2014Page 18

Industry 4.0 pilot project StreetScooter

New vehicle concept for affordable electric mobilityPSI software for planning and control of production integrates all processes from ordering to design changes to purchasing and to the workshop levelReduction of development time by 50% and development costs by 90%Small series production at large series production pricesThe first 50 mail delivery vehicles are being tested under conditions of actual use since early 2014

© PSI AG 2014Page 19

Industrie 4.0PSI participation in research projects related to Industry 4.0

Very small series production with fuzzy logic optimisation

Adaptive production control with cybernetic support systems

Adaptable multimodal logistics planning

Software and system platform for monitoring systems

Adaptable production systems for mechanical and plant engineering

© PSI AG 2014Page 20

Structure of the PSI technology platform

Industry solution: The standard software is enhanced with industry- specific and partly customer-specific functions and algorithms

Application: The application layer provides ready-to-use and useful functions with a standard software character for solving operational tasks

Framework: Basic interfaces and tools that enable the fast and cost-effective development of applications entirely based on Java

Infrastructure: Core elements that provide all components and services required for the operation of application software, e.g. Java Virtual Machine

© PSI AG 2014Page 21

InfrastructureManagement

ProductionManagement

EnergyManagement

PSIjscada…

PSIcommandPSIjscadaPSImarket…

PSImetalsPSIqualicisionPSItmsPSIglobalPSIjisPSIpec…

Rollout of the new technology platform in the Group

PSIjscada…

PSIcommandPSIjscadaPSImarket…

PSImetalsPSIqualicisionPSItmsPSIglobalPSIjis…

© PSI AG 2014Page 22

Export orders and export sales revenues 2009-2013

50.2 49.8

64.1

91.684.4

79.185.9

91.2 90.193.0

34% 33%

40%

51% 50%

45%47%

53%

49%48%

0

10

20

30

40

50

60

70

80

90

100

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

20132009 2010 2011 2012

million EURExport sales Export ordersin % of total

© PSI AG 2014Page 23

PSI strategy from 2012: Go for Growth!

Concentration of forcesactive Market penetration (Investment)take along special chances (e.g. exclusive partners)avoid (only follow existing customers)

© PSI AG 2014Page 24

New orders and sales revenues by regionsmillion EUR

83.395.094.497.0

26.2 32.6 26.030.0

14.914.7

14.619.9

34.9 29.2

32.731.5

8.711.0

7.713.2

2.5 0.5 5.0 4.4

2012 2013 2012 2013

Middle EastNorth and South AmericaChina, Southeast Asia, PacificRussia and Eastern EuropeWestern EuropeGermany

New orders Sales revenues

© PSI AG 2014Page 25

Reference customer ArcelorMittal Dofasco, Canada: Planning, Scheduling and Execution with one MES

TargetsOvercome current limitations of several existing MES by implementing 1 MESAchieve significant improvements in all areas of production, business and IT

RealizationPSImetals plans & controls 47 automation systems, 2 tube mills , 120 external systems

BenefitsBusiness & production:• Uniform production planning/control for

all business processes• Greater transparency, flexibility and

speed for planning processes• Reduced inventoriesInformation Technology:• Simplification of the IT landscape• Improved data quality

PSImetals as heart of production -World's largest PSImetalsinstallation at one plant

© PSI AG 2014Page 26

Reference customer ArcelorMittal Fos-sur-mer, France: Automated Caster Scheduling

Targets

Synchronization with up-stream lines for• a precise slab assignment• improved on time delivery• completeness of customer orders

Minimize manual scheduling efforts

Achieve higher automation level

RealizationPSImetals Caster Scheduling

BenefitsLonger schedules Increased length reduces tundish relining by 5%Higher planning velocity 33% fewer unassigned slabsOverall cost savings of 600.000 Euros/year

Thanks to improved caster scheduling:All slabs can be sold!

© PSI AG 2014Page 27

Vallourec Sumitomo do Brazil (VSB): Optimised production of Seamless Steel Tubes

Targets

Standard solution with high configurability, extensibility and flexibility

Provide plant-specific features considering demands of VSB

RealizationPSImetals Production & Logistics

BenefitsAdapting VSB solution at a maximum to PSImetals-standard resulted in• minimal customizing efforts• fulfillment of time and costs targets

Functional Benefits:• Piece-based tracking• Genealogic view for quality analysis• Harmonized processes by integrating

automation and corporative systems

1st class Pipe Mill in favor for1st class production management

© PSI AG 2014Page 28

Reference customer ThyssenKrupp Electrical Steel: Harmonised Operational Processes

TargetsStandardized manufacturing operationsHighly integrated ERP and shopfloor solutions

Minimize operational losses and costs

Achieve higher efficiency for supply chain

RealizationPSImetals at four locations for manufacturing, automation and controlSAP integration

BenefitsEfficient IT operation with a small teamQuick integration of new production sites without productivity lossesIT cost savings of 25 to 30 percentGreater efficiency in the manufacturing processes

Standardized Manufacturing withintegrated PSI, SAP & IBM Solution

© PSI AG 2014Page 29

Grid Expansion and Investment Requirements for German Energy Concept 2020Grid expansion requirementsbased on Energy Concept 2020:• 3,800 km transmission grid• 195,000 km distribution grid

Investment volume for grid expansionand connection of offshore wind farms based on Energy Concept 2020:• 30 to 50 billion EUR

Sources:

© PSI AG 2014Page 30

Investments of distribution grid operators for the grid infrastructure 2009-2013

350356462432448

3,0252,919

3,2193,189

2,535

2009 2010 2011 2012 2013p

Investments of 806 distribution system operators

thereof metering, control and information technology

In million EUR

Source: Federal Grid Agency, Monitoring Report 2010-2013

Since 2011 decline of investments for metering, control and information technology by 25%

Photo years*:2015 (Gas)2016 (Electricity)

*Basis years for calculation of network fees

© PSI AG 2014Page 31

Position of PSI in the German control system marketTransmission grid (380 kV, 220 kV)

Municipal utilities(power, gas, heating, water)

Distribution grid (110 kV, medium voltage)

PSIcontrol functionality for intelligent power gridsOverhead line monitoring

Generation management

Feed management

Smart Balancing

Congestion management

Network analysis

Virtual power plants

Intelligent network agents

Westnetz Gmbh(RWE RR) E.ON

Mitte

MITNETZ

Westnetz GmbH (RWE WWE)

VNB

KEVAG

Pfalz-werke

SYNA

SYNA

LVNBayernwerk AG

AÜW

N- ERGIE

Netze BW GmbH

ThüringerEnergienetze

avacon

E.ON HanseE.ON | Netz

ELE Verteilnetz GmbHGelsenkirchen

EVV Essen

Koblenz

KEVAGNRMFrankfurt

(Stuttgart)

(Nürnberg)

enercityHannover

REWAGRegensburg

NETRION/ MVVMannheim

SWMMünchen

SWKKrefeld Stadtwerke Düsseldorf AG

Stadtwerke Duisburg

EVOOffenbach

SWU EnergieUlm

AVGAschaffenburg

STAWAGAachenSWB

Bonn

Köln RheinEnergie

Vattenfall EuropeHamburg

Vattenfall EuropeBerlin

© PSI AG 2014Page 32

PSI customers electrical energy Europe and Asia

Germany

Slowenia

Switzerland

Austria

France

Luxembourg

Netherlands

DenmarkSweden Poland

Russia

MRSK+FSK18 Systems

Thailand

METROPOLITAN ELECTRICITY AUTHORITY

Malaysia

- Metro- North / East / South

Oman

© PSI AG 2014Page 33

PSI shares and shareholder structureNumber of shares: 15.7 million sharesShare price (01/09/14): 11.49 EURMarket capitalisation: 180 million EURMarket Segment/Index: Prime Standard/TecDAXDesignated Sponsor: equinetAnalyst coverage: Bankhaus Lampe, Berenberg Bank, Commerzbank,

Deutsche Bank, DZ Bank, Edison, equinet, First Berlin, Hauck & Aufhäuser, Dr. Kalliwoda, MATELAN Research, Montega, Solventis, WGZ Bank

Management and employeesapprox. 15.5%

Harvinder Singh8.1%

Other free floatapprox. 24%

Institutional Investors < 3%approx. 24%

RWE Deutschland AG17.8%

Institutional Investors > 3%

11.1%

Investmentaktiengesellschaft für langfristige Investoren TGVStandard Life InvestmentsSterling Strategic Value

© PSI AG 2014Page 34

PSI share price 2009-2014 (vs. TecDAX)

31/12/2011EUR 14.72 23/06/2014

EUR 11.49

31/12/2008EUR 3.60

31/12/2012EUR 15.41

31/12/2010EUR 17.85

31/12/2009EUR 8.85

31/12/2013EUR 13.55

© PSI AG 2014Page 35

0

500

1000

1500

2000

2500

Gas/Oil Electrical Metals Assembling Logistics

Competitive positions and targets 2014Gas & Oil networks => export stabilisation, EDM synergiesElectrical grids => profit, product migration Energy sales & trading => growthMetals production => growth USA, group licenses, M&AMines & Roads => China projectsLogistics => product migrationAssembling => product migration PEC, focusingTransport, safety => profit, ?

employees

© PSI AG 2014Page 36

Growth and margin drivers

Export growth: export revenues +504% since 2004

More workforce in export countries: +564 employees since 2004

Transition from project to product business: license revenues +306%, maintenance revenues +113% since 2004

Single platform strategy: from 25 development platforms to 1 common platform, already 23% of revenues on the new platform, rollout in progress

© PSI AG 2014Page 37

Financial Calendar 2014

20 March 2014: Annual Report 2013 Analyst Conference, Frankfurt

30 April 2014: Report on the 1st Quarter of 2014

6 May 2014: Annual General Meeting, Berlin

31 July 2014: Report on the 1st Six Months of 2014

30 October 2014: Report on the 3rd Quarter of 2014

24-26 November 2014: German Equity Forum, Frankfurt

© PSI AG 2014Page 38

Contact

www.psi.de

Karsten Pierschke Head of Investor Relations and

Corporate Communications

Dircksenstrasse 42-44 10178 Berlin

Germany

Phone: +49/30/2801-2727 Fax: +49/30/2801-1000

E-Mail:kpierschke@psi.de