Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Deutsche Bank German & Austrian Corporate Conference 2010

24 slides from Siemens Aktiengesellschaft's conference presentation, May 21, 2010

1. Slide 1: Excellent performance in stabilizing markets

   Excellent performance in stabilizing markets Joe Kaeser, CFO Deutsche Bank “German & Austrian Corporate Conference” Frankfurt am Main, Germany May 21, 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: DB conference 2008: A wake up call – just in time!

   DB conference 20081): A wake up call – just in time! GDP vs "Industrial GDP" (GFI)2) Capacity Utilization Growth (%) In % DB conf. 2008 DB conf. GFI2) 90 6 2008 85 GDP 2 World 80 2004 2006 2008 2010e 2012e -2 75 74% Germany Euro Area -6 70 US -10 65 2007 2008 2009 2010 1) DB German & Austrian Corpor

4. Slide 4: We acted quickly and decisively

   We acted quickly and decisively SG&A Productivity of resources 12.91) -16%1) FY09 ∆ y-o-y €bn 10.9 12.1 -10% Revenue 76.7bn 0%2) Selling 8.9 -3% 8.6 G&A 3.2 -28% 2.3 Employees 405,000 -5 % FY 07 FY 09 Supply Chain Management Increased Focus & Alignment Q2 FY10 ƒ Disposal of “Other Operations” ƒ Incr

5. Slide 5: Impact of actions show in P&L

   Impact of actions show in P&L P&L Key Figures P&L Structure 2008 - 2010 €bn 1H FY08 1H FY09 Δ y-o-y 1H FY10 Sales 36.5 38.6 - 3.0 35.6 COGS 26.3 28.0 - 3.0 25.0 Gross 10.2 28%1) 10.6 27%1) 10.6 30%1) profit Opex reduction R&D 1.8 1.9 - 0.2 1.7 SG&A 6.3 17%1) 5.4 14%1) - 0.3 5.1 14%1) Other / - 0.3 0

6. Slide 6: The Sectors are in different stages of the cycle

   The Sectors are in different stages of the cycle Industry1) Energy1) (mostly IA, DT, BT, Osram) Market volume Structural Immediate adjustments actions (Discretionary spending, Fully short work participate week, …) in recovery 2008 2009 2010 2008 2009 2010 Healthcare ƒ Stable outlook benefiting from

7. Slide 7: Global innovation strength and applied green technology secure capital efficient growth

   Global innovation strength and applied green technology secure capital efficient growth Innovative Strength Sustainability Number of granted patents €bn Revenue with “green portfolio” +10% +11% 55,000 56,000 25.0 50,700 23.0 20.7 FY 07 FY08 FY 09 FY 08 FY 09 FY 11e ƒ 30,800 R&D employees, 60% outsid

8. Slide 8: Efficiency leadership serves U.S. markets

   Efficiency leadership serves U.S. markets with our Wind Blade factory in Iowa with our SGT5 – 8000H Lea d Eu cust U.S rope ome .: S : E. rs: tay ON Tu ned President Obama visiting Siemens Most efficient and most powerful gas wind blade factory turbine worldwide ƒ >60% net efficiency1) - world record

9. Slide 9: Velaro High Speed train – a global success story

   Velaro High Speed train– a global success story Velaro E (Spain) Deutsche Bahn and ƒ 26 trains Siemens created the basis for world wide ƒ Order volume €1.0bn success with the ICE 3 Velaro CN (China) ƒ 60 trains / components for further 100 ƒ Order volume €1.5bn Velaro RUS (Russia) ƒ 8 trains ƒ Order

10. Slide 10: We have revised our working assumptions for 2010

    We have revised our working assumptions for 2010 ƒ We continue to expect a mid- single-digit percentage decline in organic revenue in FY 10 due in part to the stabilizing effect of our strong order backlog ƒ Total Sectors profit will be above the prior year level of €7.466bn ƒ This increase from our

11. Slide 11: While Fit4 2010 closes in – we look beyond

    While Fit4 2010 closes in – we look beyond Fit4 2010 well on track What could be next Q2 2010 Profitability Cash Conversion (cont. ops.) 1 – growth rate ƒ Growth above market Industry 9-13% 3.09 ƒ Innovation Energy 11-15% 1.54 Healthcare1) 14-17% 0.91 1.0 0.66 1.06 ƒ Sustainability Total Sectors FY

12. Slide 12: Consistent execution against plan

    Consistent execution against plan Reporting dates Milestones (deliverables) January 2008 ƒ New target margins for Energy and Industry Sector Q1 call and AGM ƒ Target margins for Divisions April 2008 ƒ Update on SG&A project Q2 analyst conference ƒ Start reporting in new structure July 2008 ƒ Outline

13. Slide 13: Siemens – The leading integrated technology company

    Siemens – The leading integrated technology company High quality of our businesses #1 or #2 position in market share and technology Integrated Technology Company Megatrends Health- Industry Energy care Demographic change Efficient IT Solutions and Services Urbanization Financial Services Green portf

14. Slide 14: Well positioned in dynamic markets

    Well positioned in dynamic markets ƒ Acted quickly and decisively to global downturn ƒ Our businesses are in different stages of the cycle – short / early cycle businesses have seen the bottom ƒ Build on track record of executing against our plans ƒ Global innovation leader ƒ Next priority - focus o

15. Slide 15: Financial calendar

    Financial calendar April April 29 – 30, 2010 Q2 financial report and analyst conference (London) UK Roadshow (London) May May 18, 2010 EPG Conference (Florida) May 21, 2010 Deutsche Bank German and Austrian Corporate Conference (Frankfurt) June June 2, 2010 UBS Nordic Conference (Stockholm) June 10,

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 DB German & Austrian Corporate Conference, May 21st, 2010 Copyright © Sieme

17. Slide 17: Appendix

    Appendix Page 17 DB German & Austrian Corporate Conference, May 21st, 2010 Copyright © Siemens AG 2010. All rights reserved.

18. Slide 18: Strong profitability benefiting from stringent cost management

    Strong profitability benefiting from stringent cost management Siemens (continuing operations), in €m Q2 09 Q2 10 Change in % New orders 1) 20,864 17,844 (14) Revenue 1) 18,955 18,227 (4) Book-to-bill 1.10x 0.98x Profit Total Sectors 1,844 2,138 16 Net income 2) 1,013 1,498 48 Basic earnings per sha

19. Slide 19: First signs of recovery in short cycle businesses

    First signs of recovery in short cycle businesses Q2 FY10 Order growth y-o-y1) Q2 FY10 Order Revenue Profit y-o-y1) y-o-y1) margin²) Europe/C.I.S./Africa/ME -21% Siemens - 14% - 4% (therein Germany) -19% Industry - 8% - 4% 9.4% Industry Automation 14% 4% 14.2% Americas +4% (therein USA) Drive Techno

20. Slide 20: 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

21. Slide 21: 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

22. Slide 22: 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

23. Slide 23: 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

24. Slide 24: 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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