Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Morgan Stanley China Industrial Summit 2010

26 slides from Siemens Aktiengesellschaft's conference presentation, Mar 1, 2010

1. Slide 1: Building on Proven Strengths in Emerging Markets

   Building on Proven Strengths in Emerging Markets Joe Kaeser, CFO & Member of Managing Board Richard Hausmann, President and CEO Siemens China Morgan Stanley China Industrial Summit 1 March 2010 Copyright © Siemens AG 2010. All rights reserved.

2. Slide 2: Safe Harbour Statement

   Safe Harbour Statement This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as "expects," "looks forward to", "anticipates", "intends", "plans", "believes", "seeks", "estimates",

3. Slide 3: Strong businesses in attractive markets driven by megatrends

   Strong businesses in attractive markets driven by megatrends High quality of our businesses #1 or #2 position in market share and technology Attractive markets with Integrated technology company tailwind due to megatrends ~€35bn1) ~€26bn1) ~€12bn1) Demographic change Industry Energy Health- Urbaniza

4. Slide 4: Siemens is well established in Emerging Markets

   Siemens is well established in Emerging Markets Emerging Markets1) Revenues 2005 - 2009 Trust through Sustainability Founded Employees CAGR FY 094) €23bn +19% Brazil 1905 ~9,000 China India Russia 1853 ~3,000 Russia Brasil €12bn India 1867 ~17,000 MEA2) China 1872 ~31,000 Others3) FY 05 CAGR FY 09 L

5. Slide 5: Emerging Markets will drive global growth

   Emerging Marktes will drive global growth CAGR Siemens Revenue GDP growth 2009 - 2015e CAGR +3.5% €77bn ~€51tr 30% ~€42tr 35% Emerging +5.8% 9% 31% Markets1) Other +2.6% 17% 20% 17% developed +2.9% 24% U.S. 25% 41% Europe2) 27% +1.8% 24% FY 09 GDP 2009 GDP 2015e Source: IHS Global Insight 1) Accordi

6. Slide 6: SMART is the Answer!

   SMART is the Answer! Simple, Maintenance-friendly, Affordable, Reliable, Timely-to-market Objectives Examples Achieve top positions Industry in Emerging Markets Energy Automation for Long Rolling ƒ Chinese entry-level market leader ƒ Develop and produce products ƒ Engineering know-how exported to fo

7. Slide 7: Sustained success in China for more than 138 years

   Sustained success in China for more than 138 years 1872 Supplied first pointer 1899 China’s first power 1899 China’s 1st telegraph to China plant in Beijing Electric Tram 1989 Founded first 2002 Maiden voyage 2010 China Pavilion at production JV of Transrapid Shanghai EXPO Page 7 Copyright © Siemens

8. Slide 8: Strong growth in recent years driven by infrastructure investments

   Strong growth in recent years driven by infrastructure investments China Key Facts FY 09 China Revenue split FY 09 ƒ Total revenue of €5.2bn ƒ 2005 to 2008 CAGR of 23% Healthcare ƒ Growth in 2009 still high at 7% 10% Energy 27% ƒ With ~43,000 employees (therein ~31,000 from consolidated companies) S

9. Slide 9: Siemens portfolio fits perfectly to the need of the Chinese market

   Siemens portfolio fits perfectly to the need of the Chinese market Megatrends China Challenges Our Portfolio 2075 Access to Demographic clean water change Growing demand for Industry safety and security Urbanization Increasing mobility Growing demand for Climate health- & elder care change Healthcar

10. Slide 10: Significant contracts won in FY 2009 and Q1

    Significant contracts won in FY 2009 and Q1 Q1 Guangzhou Desiro Commuter Train; Q1 Chongqing Metro Line 1 Q1 Hunan Valin Xiangtan Iron & Frame contract €450m; €58m in FY10 Signaling; €29m Steel Caster & Mill Projects; €28m FY09 Gas-Isolated Line for Q1 Wuhan Kaidi FY09 Shanghai VIP Hospitals China’s

11. Slide 11: Successful SMART products for local markets

    Successful SMART products for local markets Developed and produced in China – exported worldwide Clinical impact Next generation CT for Emerging new Markets Assembly SOMATOM of Emotion SOMATOM 6/16 slices CT Axial CT Spirit 1018 SOMATOM Smile 1st 2-slice 829 1st spiral entry-level CT entry-level CT

12. Slide 12: Global Value Sourcing adds long-term value through a highly competitive supply network

    Global Value Sourcing adds long-term value through a highly competitive supply network Objectives Examples – Expected savings FY 10 Exploit Cost Synergies Industry Numerous cases in Industry Automation ƒ Increase Local-for-Global (L4G) ƒ 3WL Breaker: € 1.3m (-30%) sourcing from China ƒ SINAMIC: € 1.

13. Slide 13: We are close to our customers with 61 regional offices and more than 90 operating companies

    We are close to our customers with 61 regional offices and more than 90 operating companies Regional Setup JV Setup SLC1) Regional General Manager (3) Industry: SLC1) Provincial General Manager (6) SLC1) Sales Offices (61) North ƒ Several successful JVs with local partners - e.g. Siemens Numerical C

14. Slide 14: Siemens China: Core messages

    Siemens China: Core messages ƒ Our portfolio fits excellently to the needs of the Chinese market (especially in the area of environmental technologies) ƒ We have deep market insight and a strong market presence ƒ We operate with strong localized processes and a strong local footprint ƒ Siemens will

15. Slide 15: Financial calendar

    Financial calendar February February 8 – 15, 2010 Roadshow (New York, Boston, Frankfurt, London) March March 1, 2010 Morgan Stanley Global Investor Conference (Shanghai) March 18, 2010 Roadshow (Paris) March 25 - 26, 2010 Capital Markets Day - Industry April April 29, 2010 Q2 Analyst Conference, Lon

16. Slide 16: Siemens investor relations contact data

    Siemens investor relations contact data Mariel von Drathen +49-89-636-33780 Munich Office +49-89-636-32474 Internet: http://www.siemens.com/investorrelations Email: [email protected] Fax: +49-89-636-32830 Page 16 Copyright © Siemens AG 2010. All rights reserved.

17. Slide 17: Appendix

    Appendix Page 17 Copyright © Siemens AG 2010. All rights reserved.

18. Slide 18: Q1 FY10 Key figures – New orders

    Q1 FY10 Key figures – New orders New orders Y-o-Y Y-o-Y adj.* Q-o-Q €m Q1 2009 Q4 2009 Q1 2010 Q1 09 - Q1 10 Q1 09 - Q1 10 Q4 09 - Q1 10 Industry Sector 9,776 8,110 8,249 -16% -14% 2% Industry Automation 1,600 1,378 1,406 -12% -9% 2% Drive Technologies 2,086 1,440 1,575 -25% -23% 9% Building Technol

19. Slide 19: Q1 FY10 Key figures – Revenue

    Q1 FY10 Key figures – Revenue Revenue Y-o-Y Y-o-Y adj.* Q-o-Q €m Q1 2009 Q4 2009 Q1 2010 Q1 09 - Q1 10 Q1 09 - Q1 10 Q4 09 - Q1 10 Industry Sector 9,288 8,981 8,070 -13% -11% -10% Industry Automation 1,609 1,495 1,397 -13% -10% -7% Drive Technologies 2,060 1,813 1,510 -27% -25% -17% Building Technol

20. Slide 20: Q1 FY10 Key figures – Profit and margin

    Q1 FY10 Key figures – Profit and margin Profit and margin Margin Margin Margin Target €m Q1 2009 Q4 2009 Q1 2010 Q1 2009 Q4 2009 Q1 2010 range Industry Sector 934 562 911 10.1% 6.3% 11.3% 9-13% Industry Automation 268 208 234 16.7% 13.9% 16.8% 12-17% Drive Technologies 260 161 166 12.6% 8.9% 11.0% 1

21. Slide 21: Q1 FY10 Net debt bridge

    Q1 FY10 Net debt bridge €bn Adj. ind. Adj. ind. ND/EBITDA 1) ND/EBITDA 2) 0.31x 0.28x -2.9 -3.0 Therein e.g. • Interest paid -0''1 • ∆ fair value of debt in hedge accounting +0''2 ƒ Pension deficit -4.2 6.4 5.5 ƒ OPEB -0.7 ƒ Credit guarantees -0.3 ƒ Hybrid adj.3) 0.9 ƒ SFS Debt 9.1 ƒ Fair value adj

22. Slide 22: Reconciliation and Definitions for Non-GAAP Measures (I)

    Reconciliation and Definitions for Non-GAAP Measures (I) To supplement Siemens’ Consolidated Financial Statements presented in accordance with International Financial Reporting Standards, or IFRS, Siemens presents the following supplemental financial measures: ƒ New orders and order backlog ƒ Adjust

23. Slide 23: Reconciliation and Definitions for Non-GAAP Measures (II)

    Reconciliation and Definitions for Non-GAAP Measures (II) New orders and order backlog (continued) New orders are generally recognized immediately when the relevant contract becomes legally effective and binding. The only exception are orders with short overall contract terms. In this case, a separa

24. Slide 24: Reconciliation and Definitions for Non-GAAP Measures (III)

    Reconciliation and Definitions for Non-GAAP Measures (III) Return on equity, or ROE In line with common practice in the financial services industry, Siemens Financial Services (SFS) uses return on equity, or ROE, as one of its key profitability measures. Siemens defines ROE as annualized Income befo

25. Slide 25: Reconciliation and Definitions for Non-GAAP Measures (IV)

    Reconciliation and Definitions for Non-GAAP Measures (IV) EBITDA (adjusted) and EBIT (adjusted) Siemens defines EBITDA (adjusted) as EBIT (adjusted) before amortization (which in turn is defined as Amortization and impairments of intangible assets other than goodwill) and Depreciation and impairment

26. Slide 26: Reconciliation and Definitions for Non-GAAP Measures (V)

    Reconciliation and Definitions for Non-GAAP Measures (V) Limitations Associated with Siemens’ Supplemental Financial Measures The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular: ƒ With respect to adjusted or organic growth rates o

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