The Company

Siemens 2011 Status: December 2010

© Siemens AG 2010. 2009. All rights reserved

Innovation is our lifeblood Major R&D investments

Major innovations

ƒ €3.846 billion in fiscal 2010, or 5.1% of revenue

ƒ Our patent position in fiscal 2010: Î Germany: No. 3 Î Europe: No. 2 Î USA: No. 13 ƒ Most recent innovations: Î Biograph mMR: World’s first integrated whole-body MR-PET for precise measurements of position, type and activitiy of tumors Î World’s most powerful gas turbine: With a 60-percent efficiency rating, the turbine drastically cuts fuel consumption and CO2 emissions Î Velaro high-speed train travels up to 350 kilometers per hour, consumes 0.33 liters of fuel per seat and 100 km

ƒ 30,100 R&D employees worldwide ƒ 18,000 software engineers ƒ 178 R&D locations in over 30 countries around the world ƒ 8,800 inventions in FY 2010 ƒ 57,900 active patents R&D spending in % of revenue 5.1% 5.1% 4.9% 4.7%

FY2007

Page 2

FY2008 FY2009 FY2010

December 2010

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Committed to profit and growth Revenue by Sector Healthcare €12.4 billion 16%

Revenue by region Cross-Sector Businesses

7,7 6% %

18% 18%

€4.8 billion

44% 49% Energy €25.5 billion

29% 33%

Industry €34.9 billion

27% Americas

Total Revenue Sectors and Cross-Sector Businesses

Revenue and employees 100.000

500

80.000

400

60.000

300

40.000

200

FY

100

Revenue in millions of euros 1985

Page 3

1990

1995

December 2010

15% 15%

40%

Europe, CIS, Africa, Middle East (excl. Germany)

Location of customer

Key figures

Employees in thousands

20.000

Germany

Asia, Australia

2000

2010

Continuing operations (in millions of euros)

FY2009

FY2010

Revenue New orders Income Free cash flow Employees

76,651 78,991 2,457 3,786 405,000

75,978 81,163 4,112 7,111 405,000

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Global presence – basis for competitiveness

Germany 92

128,000 Americas 91,000 20.6

Asia, Australia

11.4 32% 15%

83

89 74,000 13.9 18% 18%

Europe, CIS, Africa, Middle East (excl. Germany)

22% 27%

112,000

30.0

78

28% 40% As of September 30, 2010

Page 4

December 2010

Employees

Revenue (billions of euros)

Major production facilities

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Megatrends shape our future Urbanization ƒ 2007: for the first time in history, more people live in cities than in rural areas. ƒ Today 280 million people live in megacities (> 10 million residents) ƒ 2030: 60 % of the world’s population will live in cities ƒ Urban conglomerations contribute a high share of a nation’s economic output: Tokyo provides 40% of Japan’s GDP, Paris generates 30% of France’s GDP.

Demographic Change ƒ Average life expectancy worldwide will increase to 72 years in 2025 from 46.6 years in 1950. ƒ World population will grow from more than 6 billion now to 8 billion by 2025. ƒ 95% of the global population growth is taking place in developing countries. ƒ The 65+ generation will nearly double worldwide by 2030 (from 7% to 12%), Page 5

December 2010

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Megatrends shape our future Climate Change ƒ The average global surface temperature has increased by 0.76° C compared to the 18th century. ƒ 11 of the 12 years between 1994 and 2005 rank among the 12 warmest since weather observations began. ƒ Greenhouse gas emissions haven risen dramatically since industrialization. Today we face the highest CO2 concentration in the atmosphere for the past 350,000 years.

Globalization ƒ From 1950 to 2004, the volume of global trade has increased 27.5-fold. ƒ The number of global players has grown from 17,000 in 1980 to over 70,000 today. ƒ Ocean freight has increased over the past four decades from less than 6,000 billion ton-miles to over 27,500 billion ton-miles a year.

Page 6

December 2010

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Megatrend challenges – Siemens' answers for an urbanizing world Cities are centers of growth

€1,700 billion

300

ƒ Infrastructure spending amounts to €2 trillion* worldwide / year ƒ Siemens-relevant market: about €300 billion

World population in billions 9.3 6.9 in Mrd. 70% 50% Cities Euro

2010

ƒ Cities account for 80% of greenhouse gas emissions

ƒ By 2050, about 70% of 300the world population will live 2050 1700 in cities

Siemens has the answers ƒ Energy: leading HVDC technology transmits power from remote energy sources to cities at low loss ƒ Building technology: "Performance Contracting" – energy savings of up to 40% finance investments in energyefficient building technology ƒ Security: complete solutions ƒ Mobility: full spectrum of mobility systems (Complete Mobility) ƒ Water: largest provider of products for every stage of water treatment ƒ Healthcare: world leader in IT solutions for healthcare, efficient processes in hospitals lower costs

* Calculations based on OECD data in „Infrastructure 2030“

Page 7

December 2010

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Sectors and Divisions: Industry Energy

Industry Divisions ƒ Drive Technologies ƒ Industry Automation ƒ Building Technologies ƒ Mobility ƒ Lighting (OSRAM) ƒ Industry Solutions

Page 8

December 2010

Divisions ƒ Fossil Power Generation ƒ Renewable Energy ƒ Oil & Gas ƒ Energy Service ƒ Power Transmission ƒ Power Distribution

Healthcare Divisions ƒ Imaging & IT ƒ Workflow & Solutions ƒ Diagnostics

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Industry Sector – overview Sector profile

Revenue by region (FY2010)

The Industry Sector is one of the world’s leading suppliers of manufacturing, transportation, building and lighting systems. By continuously optimizing productivity, efficiency and flexibility, the division is increasing the economic and environmental competitiveness of its customers in the industry and infrastructure segments. Highlights include: Customized motors

Industrial water treatment

Velaro highspeed trains

Performance in Q4 (in millions of euros)

Revenue New orders Profit Profit margin

Americas

20% 20% 24%

20% 22%

36% 34%

Europe, CIS, Africa, Middle East (excl. Germany)

External Revenue Location of customer

Key figures (FY2010) Q4 20101) 9,780 9,832 883 9.0%

1) July 1 to September 30, 2010 Page 9

Asia, Australia

Germany

December 2010

vs. Q4/09 +9% +21% +57% Target: 9-13%

(in millions of euros)

Total revenue New orders Profit Employees

34,869 34,908 3,478 204,000 Corporate Communications © Siemens AG 2010. All rights reserved.

Industry Sector – Industry Automation Division Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

Fast, flexible, efficient: Industry Automation offers its customers a unique combination of automation technologies and industrial software spanning entire value chain – from product design to service. The portfolio enables industry customers to slash timeto-market by up to 50 percent.

Siemens Industry Automation expands its software base at a major automaker. Chrysler Group LLC, producer of Chrysler, Dodge, and Jeep vehicles, has selected NX software for digital product development. Chrysler began using the PLM software “Teamcenter” as its company-wide product data management system in 2008.

.

Performance in Q4 (in millions of euros)

New orders Revenue Profit

Q4 20101) 1,723 1,816 334

1) July 1 to September 30, 2010 Page 10

December 2010

vs. Q4/09 +25% +21% +61% Corporate Communications © Siemens AG 2010. All rights reserved.

Industry Sector – Drive Technologies Division Q1

Q2

Q3

Q4

GJ 2010

Division Profile

New orders / innovations in Q4

Productivity, energy efficiency and reliability are the key requirements of the Division’s customers. And as the world’s No. 1 supplier of products, end-to-end systems, applications and services for complete power trains and for all industry segments, Drive Technologies has the solutions they need.

Effective from June 16, 2011, only motors that meet the IE2 minimum efficiency standard may be marketed in the European Economic Area. Today Siemens Drive Technologies supplies all the motor series affected by the new legislation and supports migration. The efficiency of high-efficiency motors can be up to 7% higher than that of conventional motors. This reduces operating costs, and the higher costs are paid back in a short time.

Performance in Q4 Q4 Q32010 20091)*

(in millions of euros)

New orders Auftragseingang Revenue Umsatz Profit Ergebnis

1,735 1.358 2,014 1.699 281 171

1) July 1 to September 30, 2010 Page 11

December 2010

vs. ggü.Q4/09 Q3/08 +20% -41% +11% -21% +75% -53% Corporate Communications © Siemens AG 2010. All rights reserved.

Industry Sector – Building Technologies Division Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

The Division is the preferred partner when it comes to maximizing energy efficiency in buildings and protecting people and infrastructures. The portfolio comprises products, solutions and services for building automation, fire safety, security and power distribution.

Sinteso SWiNG is the new wireless fire detection system from Siemens Building Technologies. The detection reliability and immunity to deception of the SWiNG neural wireless fire detectors are equal to wired detectors and they provide the first wireless loop with the patented Advanced Signal Analysis (ASA) technology.

Performance in Q4 (in millions of euros)

New orders Revenue Profit

Q4 20101) 2,021 1,949 148

1) July 1 to September 30, 2010 Page 12

December 2010

vs. Q4/09 +10% +7% +109% Corporate Communications © Siemens AG 2010. All rights reserved.

Industry Sector – Industry Solutions Division Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

Industry Solutions is a leading provider of solutions and services for industrial plants and infrastructure systems, helping customers increase their competitiveness across entire lifecycles and offering attractive solutions in the areas of energy efficiency, pollution control and water management.

Siemens Industry Solutions is now able to provide to mining companies a gearless drive system for ore mills with a tube diameter of 42 feet. This enables throughput to be almost doubled in comparison with the 38-foot mills commonly used today.

Performance in Q4 (in millions of euros)

New orders Revenue Profit

Q4 20101) 2,056 1,659 -119

1) July 1 to September 30, 2010 Page 13

December 2010

vs. Q4/09 +61% -2% --Corporate Communications © Siemens AG 2010. All rights reserved.

Industry Sector – Mobility Division Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

By networking transportation systems more effectively, the Division’s integrated solutions for intermodal transport, traffic management, postal automation and airport logistics are making the movement of people and goods more efficient and eco-friendly.

At the InnoTrans 2010, the Mobility Division presented the latest generation of the Velaro D highspeed train. The future flagship of Deutsche Bahn AG for international high-speed rail travel, the new ICE (class 407), is due to go into operation at the end of 2011, initially running between Frankfurt am Main and Southern France and then later in Belgium. A total of 15 eight-car high-speed trains are scheduled for delivery by 2012.

Performance in Q4 (in millions of euros)

New orders Revenue Profit

Q4 20101) 1,621 1,756 114

1) July 1 to September 30, 2010 Page 14

December 2010

vs. Q4/09 -8% +1% +13% Corporate Communications © Siemens AG 2010. All rights reserved.

Industry Sector – OSRAM Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

OSRAM is an expert partner offering customers energy-saving lighting solutions for all areas of modern life. The portfolio includes not only lamps and optoelectronic semiconductor light sources like light-emitting diodes (LEDs), LED systems and LED luminaires but also electronic control gear and light management systems.

With the PirOLED, Osram now offers a commercially available OLED and LED luminaire for the first time. The PirOLED is fitted with the Orbeos CDW-031 OLED panel, which was introduced to the public last year as the first qualified Orbeos OLED panel. The PirOLED is the first step toward an OLED luminaire product family. Osram and its LED-affiliate Osram Opto Semiconductors are currently building a pilot line for OLEDs in Regensburg, Germany, scheduled for mid-2011, where around €50 million will be invested in the next 3 years .

Performance in Q4 (in millions of euros)

New orders Revenue Profit

Q4 20101) 1,252 1,252 137

1) July 1 to September 30, 2010 Page 15

December 2010

vs. Q4/09 +18% +18% ---

Source: AUDI AG

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Sectors and Divisions: Energy Energy

Industry Divisions

ƒ ƒ ƒ ƒ ƒ ƒ

Drive Technologies Industry Automation Building Technologies Mobility Lighting (OSRAM) Industry Solutions

Divisions ƒ Fossil Power Generation ƒ Renewable Energy ƒ Oil & Gas ƒ Energy Service* ƒ Power Transmission ƒ Power Distribution

* Figures for this Division are incorporated in the reporting of the other Divisions of the Energy Sector Page 16

December 2010

Healthcare Divisions ƒ Imaging & IT ƒ Workflow & Solutions ƒ Diagnostics

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Energy Sector – overview Sector profile

Revenue by region (FY 2010)

The Energy Sector is one of the world’s leading suppliers in the field of energy technology. The Sector enables customers to generate, transmit and distribute electrical power at the highest levels of efficiency. It helps them also to produce, convert and transport the primary fuels oil and gas. Highlights of the Sector's comprehensive portfolio include: Industrial gas turbines

Wind turbines

HVDC transmission

Performance in Q4 (in millions of euros)

Revenue New orders Profit Profit margin

Asia, Australia

8% 15% America

26% 51%

Europe, CIS, Africa, Middle East (excl. Germany)

External Revenue Location of customer

Key figures (FY2010) Q4 20101) 7,260 9,061 953 13.1%

1) July 1 to September 30, 2010 Page 17

Germany

December 2010

vs. Q4/09 +7% +40% +9% Target: 11-15%

(in millions of euros)

Total revenue New orders Profit Employees

25,520 30,122 3,562 88.000 Corporate Communications © Siemens AG 2010. All rights reserved.

Energy Sector – Fossil Power Generation Division Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

The Division generates more electricity from less fuel with innovative technologies. Fossil Power Generation boosts the efficiency of coal-and-gasbased electricity production and provides technologies for low-carbon fossil power generation.

The Fossil Power Division will build two turnkey combined cycle power plants in Oman. Siemens will build the two 750-megawatt plants Barka III and Sohar II as consortium leader together with its South Korean partner GS E&C. Both units are scheduled to go into operation in simple-cycle mode in May 2012, with the extension to combined cycle to follow by April 2013. The overall investment volume is approximately US$1.7 billion.

Performance in Q4 (in millions of euros)

New orders Revenue Profit

Q4 20101) 3,533 2,499 389

1) July 1 to September 30, 2010 Page 18

December 2010

vs. Q4/09 +59% -6% +19% Corporate Communications © Siemens AG 2010. All rights reserved.

Energy Sector – Renewable Energy Division Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

In the dynamic renewables market, the Renewable Energy Division is steadily expanding its position – with innovative wind turbines that rank among the most reliable in the world, with large-scale photovoltaic projects, and with leading-edge technologies for solar-thermal power plants.

The Renewable Energy Division remains on the road to success in North America. The company will supply wind turbines with a combined capacity of 227 megawatts for a wind farm in Oklahoma. The order comprises 98 wind turbines and includes the first delivery of new-generation direct drive wind turbines. Siemens also plans to invest in a new rotor blade manufacturing facility in Canada that will create up to 300 jobs.

Performance in Q4 (in millions of euros)

New orders Revenue Profit

Q4 20101) 1,454 977 103

1) July 1 to September 30, 2010 Page 19

December 2010

vs. Q4/09 +85% +48% +36% Corporate Communications © Siemens AG 2010. All rights reserved.

Energy Sector – Oil & Gas Division Q1

Q2

Q3

Q4

Division profile

New orders / innovations in Q4

The Division offers customers in the oil and gas, process, and energy supply industries a wide portfolio of products and solutions for the ecofriendly and resource-saving utilization of energy in areas such as the production and processing of oil and gas and the energy-efficient generation of electricity.

Oil & Gas has secured two orders for key systems for gas pipeline projects in China. The customer for both projects is China National Petroleum Corporation (CNPC) Materials Company. Siemens will supply two variable speed drive (VSD) systems for Yangqu station in Shanxi province and four centrifugal compressors for the Jining gas pipeline project in eastern China.

Performance in Q4 (in millions of euros)

New orders Revenue Profit

Q4 20101) 1,466 1,180 126

1) July 1 to September 30, 2010 Page 20

December 2010

vs. Q4/09

FY2010

+8% +8% -10% Corporate Communications © Siemens AG 2010. All rights reserved.

Energy Sector – Power Transmission Division Q1

Q2

Q3

Q4

Division profile

New orders / innovations in Q4

Low-loss power transmission, reliable switchgear and transformers, and advanced power transmission systems: The Division leverages its innovative strength to enable customers to transmit power – for example, green electricity from renewable energy sources like off-shore wind farms – safely and efficiently.

A further order for connecting offshore wind turbines to the power grid reinforces the Division as the undisputed leader in offshore grid connection technology. Together with Prysmian, Siemens Energy will connect a wind farm in the North Sea to the mainland power grid. The volume of the order for the consortium as a whole amounts to approximately €500 million.

Performance in Q4 (in millions of euros)

New orders Revenue Profit

Q4 20101) 1,848 1,879 226

1) July 1 to September 30, 2010 Page 21

December 2010

vs. Q4/09 +16% +15% +2%

FY2010

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Energy Sector – Power Distribution Division Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

The Division meets the prerequisites for sustainable energy management by providing smart grid technologies that increase the efficiency of energy systems. It offers customers innovative mediumvoltage components and systems, solutions for energy automation and services for electrical systems and networks.

Following an invitation to tender issued by the European Union, Siemens Energy secured an order in early May 2010 to supply a new network control system based on its Spectrum Power 4 system. The buyer is DB Energie GmbH based in Frankfurt am Main, Germany. Siemens technology as a key system component will maintain the high reliability of the German traction power supply system, which was greater than 99 percent in 2009.

Performance in Q4 (in millions of euros)

Q4 20101)

New orders Revenue Profit

959 943 123

1) July 1 to September 30, 2010 Page 22

December 2010

vs. Q4/09 +44% +9% -1% Corporate Communications © Siemens AG 2010. All rights reserved.

Sectors and Divisions: Healthcare Energy

Industry Divisions

ƒ ƒ ƒ ƒ ƒ ƒ

Drive Technologies Industry Automation Building Technologies Mobility Lighting (OSRAM) Industry Solutions

* New Division strcuture, first reported as of January 2011 Page 23

December 2010

Divisions ƒ Fossil Power Generation ƒ Renewable Energy ƒ Oil & Gas ƒ Energy Service ƒ Power Transmission ƒ Power Distribution

Healthcare Divisions * ƒ Imaging & IT ƒ Workflow & Solutions ƒ Diagnostics

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Healthcare Sector – overview Sector profile

Revenue by region (FY2010)

The Healthcare Sector is one of the world's largest providers to the healthcare industry. Its core competencies are on the one hand, diagnostic systems and therapeutic technologies; and on the other, knowledge processing – including information technology and systems integration. Siemens Healthcare is the first integrated healthcare company that combines imaging systems, laboratory diagnostics, treatment solutions and healthcare IT rounded off by consulting and services.

Performance in Q4 (in millions of euros)

Revenue New orders Profit 2) Profit margin

9%

Asia, Australia

20%

Americas

42%

29% Europe, CIS, Africa, Middle East (excl. Germany)

External Revenue Location of customer

Key figures (FY2010) Q4 20101) 3,413 3,798 -772 -22.6%

1) July 1 to September 30, 2010 Page 24

Germany

vs. Q4/09 +9% +14% --Trgt: 14-17%

(in millions of euros)

Total revenue New orders Profit Employees 2)

12,364 12,872 748 49,000

2) Incl. impairment charges of €1.204 billion at the Sector Diagnostics

December 2010

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Healthcare Sector – Imaging & IT2) Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

Today, innovative imaging systems are routinely used in hospitals and doctors‘ offices. They enable early disease detection, reliable diagnosis and effective treatment. The Division‘s advanced IT solutions help make healthcare more patientoriented, open and transparent. Workflow can be designed more efficiently, cutting costs in the process.

Siemens has enhanced its digital radiography systems with technology that produces a soft tissue image of the chest. Riverain Medical’s SoftView Enhanced Chest Imaging technology automatically suppresses bone structures to improve the visibility of soft tissue, such lungs. As SoftView uses existing chest X-rays to produce soft tissue images, additional radiation exposure can be avoided.

Performance in Q4 (in millions of euros)

New orders Revenue Profit

Q4 20101) 2,499 2,083 392

1) July 1 to September 30, 2010 Page 25

vs. Q4/09 +18% +8% +10%

2) Sector structure as of September 30, 2010

December 2010

Corporate Communications © Siemens AG 2010. All rights reserved.

Healthcare Sector – Workflow & Solutions2) Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

The Division‘s aim is to accelerate the accurate diagnosis of the most common diseases and establish new worldwide standards for their treatment. The spectrum of products and services is broad – and they are used to develop integrated solutions that enhance the clinical and economic value of the Healthcare Sectors's individual offerings.

Siemens launched a new, multifunctional “miniTek” remote control for hearing instruments. Hardly bigger than a matchbox, this device is both a remote control for the hearing instrument and a platform that connects to communications or entertainment electronics.

Performance in Q4 (in millions of euros)

Q4 20101)

New orders Revenue Profit

407 422 -62

1) July 1 to September 30, 2010 Page 26

vs. Q4/09 +6% +6% ---

2) Sector structure as of September 30, 2010

December 2010

Corporate Communications © Siemens AG 2010. All rights reserved.

Healthcare Sector – Diagnostics2) Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

Committed to advancing patient care, the Division supports clinicians in diagnosing disease, managing patient conditions, and monitoring medical therapies. Diagnostics helps improve healthcare quality and reduce treatment costs through early diagnosis.

Siemens Healthcare Diagnostics’ LOCI® CA 125II, CA 15-3 and CA 19-9 have been CE Marked for use on the Dimension Vista® Intelligent Lab Systems, which now offer a complete panel of oncology assays outside the U.S. The Dimension Vista® systems are the only integrated chemistry instruments with oncology assays that employ LOCI® technology, offering high sensitivity, quick reaction times, low sample volumes, and simple, homogeneous processing.

Performance in Q4 (in millions of euros)

New orders Revenue Profit

Q4 20101)

vs. Q4/09

968 978 -1,135

+13% +13% ---

1) July 1 to September 30, 2010 Page 27

2) Sector structure as of September 30, 2010

December 2010

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Cross-Sector Businesses – Financial Services (SFS) Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

The Siemens Financial Services (SFS) is an international, business-to-business provider of financial solutions. With about 2,000 employees and an international network of financial companies coordinated by Siemens Financial Services GmbH, Munich, SFS supports Siemens as well as non-affiliated companies, focusing on the sectors energy, industry and healthcare. SFS finances infrastructure, equipment, and working capital and acts as a competent manager of financial risks within Siemens.

A new study by Siemens Financial Services finds that 52 percent of German companies expect the cost of credit to rise during the remainder of 2010; and the availability remains tight as well, with 34 percent of the surveyed companies expecting their lines of credit to be reduced further. Also, 40 percent of companies in Germany expect their use of alternative financing solutions, such as leasing, to rise in 2010 – that's almost three times the 2008 level.

Performance

Key figures FY2010

(in millions of euros)

ROE Profit Assets Page 28

FY2010 37.3% 447 12,506 December 2010

FY2009 11.3% 304 11,704

(in millions of euros)

Project volume to be 44,000 financed Assets under Management 19,000 Corporate Communications © Siemens AG 2009. Alle Rechte vorbehalten.

Cross-Sector Businesses – Siemens IT Solutions and Services Q1

Q2

Q3

Q4

FY2010

Division profile

New orders / innovations in Q4

Siemens IT Solutions and Services is an leading international provider of IT solutions and services. It covers the entire IT service chain from a single source, from consulting to system integration to the management of IT infrastructures. In addition, it extends the range of offerings of the other Siemens Sectors to include IT solutions.

HDI-Gerling is part of the Talanx Group, the thirdlargest insurance group in Germany, and has commissioned Siemens IT Solutions and Services to modernize its entire complete communications infrastructure in Germany and consolidate its IT infrastructure. The order is worth €140 million over seven years.

Performance in Q4

Key figures (FY2010)

(in millions of euros)

New orders Revenue Profit

Q4 20101) 1,130 1,087 -463

1) July 1 to September 30, 2010 Page 29

December 2010

vs. Q4/09 3% -6% n/a

(in millions of euros)

New orders Total revenue Profit

4,226 4,155 -537 Corporate Communications © Siemens AG 2010. All rights reserved.

Equity Investments*

BSH Bosch und Siemens Hausgeräte BSH is the largest manufacturer of household appliances in Germany and Europe and one of the leading companies in its industry. The joint venture between Robert Bosch GmbH (Stuttgart) and Siemens AG (Munich) was formed in 1967. Today, BSH operates 41 factories in 13 countries in Europe, the U.S., Latin America and Asia. Including its worldwide network of sales and customer service units, BSH currently has around 60 companies in over 40 countries and approximately 40,000 employees. Nokia Siemens Networks NSN is one of the largest telecommunications infrastructure companies, with operations in 150 countries. NSN provides a complete portfolio of mobile, fixed and converged network technology, as well as professional services including consultancy and systems integration, deployment, maintenance and managed services. Enterprise Networks Enterprise Networks is a provider of end-to-end enterprise communications solutions that use open, standards-based architectures to unify communications and business applications for a seamless collaboration experience. This approach enables organizations to improve productivity and reduce costs through easy-to-deploy solutions that work within existing IT environments. * A selection of main Equity Investments. In general, the segment Equity Investments comprises equity stakes held by Siemens that are accounted for by the equity method or at cost and which are not allocated to a Sector, a Cross-Sector Business, SRE, Pensions or Corporate Treasury for strategic reasons

Page 30

December 2010

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Value of Siemens

After a successful transformation, One Siemens is our target system for sustainable value creation

One Siemens

10 Point Program

1998

Operation 2003 2000

Fit42010

Fit4More

2005

2007

Three strategic directions Focus on innovation-driven and technology-driven growth markets Get closer to our customers with local entrepreneurship and local value added - globally Use the power of Siemens to continuously outperform our competitors

Page 31

December 2010

2010

Vision The pioneer in ƒ

Energy efficiency

ƒ

Industrial productivy

ƒ

Affordable and personalized healthcare

ƒ

Intelligent infrastructure solutions

Corporate Communications © Siemens AG 2010. All rights reserved.

One Siemens – three strategic directions

1

WHAT?

Focus on innovation-driven WAS growth markets

2

WHERE?

Get closer to our customers 3 HOW? Use the power of Siemens

Page 32

December 2010

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Innovation-driven growth markets – dynamic growth of Siemens' environmental portfolio Siemens environmental portfolio ƒ The world’s largest environmental portfolio consists of products and solutions that contribute directly to environment and climate protection1)

Business volume of environmental portfolio 40

(in € millions)

+ 10%* 28

19

ƒ At €28 billion it represents 37% of our total revenue ƒ It is growing 10% each year* and should reach €40 billion by 2014 ƒ In fiscal 2010, energy-efficient products of our green portfolio abated about 270 million tons of CO2… Î … that equals the total CO2 emitted by Hong Kong, London, New York, Tokyo, Delhi and Singapore

2009

Page 33

*Compound annual growth rate December 2010

2014e

CO2 abatement at customers (in millions of tons)

=>

270 210

2009 1) Reviewed by PwC

2010

Hong Kong London New York Tokyo Delhi Singapore

2010 Corporate Communications © Siemens AG 2010. All rights reserved.

Examples from our environmental portfolio 1| Renewables

3| Energy efficiency

All renewables qualify: ƒ Wind power ƒ Grid access for wind power ƒ Steam turbines for solar thermal power plants

Products and solutions with exceptional energy efficiency qualify:

ƒ Combined-cycle power plants ƒ Industrial drive systems

2| Environmental technology All environmental technologies qualify: ƒ Water technologies ƒ Air pollution control

Page 34

December 2010

ƒ High Voltage Direct Current (HVDC) power transmission ƒ Traffic management solutions ƒ Efficient lighting ƒ Energy performance contracting Corporate Communications © Siemens AG 2010. All rights reserved.

Innovation-driven growth markets – Siemens drives technologies of the future 1| Desertec Industrial Initiative

2| Smart Grid

Desert power for Africa and Europe

The smart grid of the future

ƒ Siemens as technology driver ƒ Goal: meet 17% of Europe's demand for electricity with solar and wind by 2050

ƒ Flexible grid that enables decentralized feed-in and better capacity utilization ƒ Smart grids to abate more than 1 billion tons of CO2 by 2020

3| Electro mobility

4| SMART products

Shaping the future of transportation

Understanding requirements in emerging countries

ƒ Siemens offers comprehensive solutions from (charging infrastructure to drives) ƒ Integration von electric cars in power grid: batteries used to store power

ƒ Customized portfolio for medium price segment ƒ Affordable, high-quality products for the growth markets of the future

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December 2010

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One Siemens – three strategic directions

1

WHAT?

Fokus auf innovations- und Focus on innovation-driven Wachstumsmärkte richten WAS technologiegetriebene

growth markets

2

WHERE?

Get closer to our customers 3 HOW? Use the power of Siemens

Page 36

December 2010

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From Werner von Siemens' workshop to global player – active in over 190 countries

Page 37

1847

Founding of ''Telegraphen-Bauanstalt von Siemens & Halske" in Berlin

1850

First international sales agency in London

1855

Founding of the Russian company as the first foreign branch

1904

First permanent office in China

1905

Founding of Siemens do Brazil

1924

Founding of Siemens India Ltd.

1961

Exports exceed 1 billion DM for first time

1968

Siemens passes the 100-country mark

1970

Founding of Siemens Corporation, USA

1994

Founding of Siemens Ltd. China in Beijing

December 2010

Corporate Communications © Siemens AG 2010. All rights reserved.

Germany – a strong base in our home market Overview 2010 Branch office Global R&D location

Revenue (in millions of euros) Employees

11,432 128,400

Regions

6

Branch offices

36

Siemens technology – backbone of Germany’s infrastructure ƒ Every second computed tomography scanner used in German clinics is from Siemens ƒ More than half of the power plants connected to Germany‘s power grid use turbines and generators from Siemens ƒ More than 75% of the automobiles made in Germany are built in factories equipped with Siemens automation technology ƒ Siemens technology is installed at every postal distribution center Page 38

December 2010

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U.S. – broad presence in the world's toughest market Overview of fiscal 2010 Top manufacturing locations

Only major locations Sales & service Engineering / R&D

Manufacturing /assembly

Sales (in millions of euros)

14,727

Employees

61,000

R&D (in millions of euros) Global business HQs Locations

1,300 9 760

Siemens is modernizing the U.S. infrastructure ƒ In energy, our power generation solutions help meet one-third of America’s total energy needs every day, like six 60-Hz H-class, next-generation gas turbine-generator packages in Florida and largest single U.S. order for 149 wind turbines for the Lower Snake River project ƒ In healthcare, we are the No. 1 application service provider, processing an average of 190 million transactions daily for more than 1,000 customers ƒ In industry, we process 100% of the nation's mail ƒ Invested USD 400 million and created some 3,000 green manufacturing jobs Page 39

December 2010

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Brazil – leading position and more than 100-year history Overview of fiscal 2010 New orders in € billions (vs. FY09) Headquarters Regional offices R&D centers Manufacturing facilities

Employees

2.0 (ca. +50%) 10,170

Regional offices

12

R&D centers

6

Facilities

13

Modernizing the country's infrastructure ƒ Nearly all Siemens Divisions hold #1 or #2 market positions ƒ Siemens equipment and systems are responsible for 50% of the electrical power generated in Brazil ƒ Involved in two-thirds of all Brazilian offshore platforms defined over the past 8 years, with clear market leadership ƒ 30% of all digital diagnostics imaging is performed by Siemens systems

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December 2010

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Russia – good reputation in an attractive market Overview of fiscal 2010 New orders in € billions of (vs. FY09) Employees Offices Siemens Central Office

Siemens district office

2.6 (ca. +140%) 3,327 > 30

Group office

Modernizing Russian industry & infrastructure ƒ Energy-efficiency Study for Ekaterinburg to reduce CO2 emissions; related cooperation with Russian partners ƒ Several new strategic partnerships with key players in Russian economy: Russian Railways, Gazprom, Transneft, Federal Grid Company, and Severstal to support modernization and innovation ƒ Strong engagement in the Skolkovo "Innovation City" project

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December 2010

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India – key growth market Overview of fiscal 2010 New orders in € billions (vs. FY09)

Office Factory

2.4 (ca. +4%)

Employees

17,500

Companies

19

Factories

19

Sales offices

35

Stable performance in a challenging year ƒ 60 new SMART projects to target a market worth over €7 billion ƒ Manufactured India’s first single-phase 500MVA HVDC transformer; first company to manufacture 145kV gas insulated switchgear locally ƒ Received first turnkey metro rail contract for signaling, electrification, rolling stock and system integration for the new 6.1 km metro line connecting Gurgaon's Cyber City to Line 2 of the Delhi metro

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December 2010

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China – strong base in a dynamic environment Overview of fiscal 2010 North

New orders in € billions (vs. FY09)

North South East

East Headquarters Regional office

South

Employees

5.6 (ca. +2%) >33,000

Regional Offices

62

Companies

>90

Contributions to China's infrastructure ƒ Together with China Southern Power Grid, we commissioned the YunnanGuangdong HVDC line, the world's longest at 1,400 kilometers, with a transmission capacity of 5,000 megawatts (MW) ƒ Supplied advanced signaling systems to Beijing Metro Line 10 & 8 Phase 2 ƒ Strategic cooperation with China Hospital Association on “Green Hospital” ƒ Contracts worth more than €1 billion related to Expo 2010 in Shanghai

Page 43

December 2010

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Africa – poised for sustainable growth First activities (selected countries) South Africa

since 1860

Algeria

since 1857

Tunisia

since the 1930s

Morocco

since 1956

Examples of our activities in Africa ƒ Light for people living at Lake Victoria: they can charge batteries at an Osram solar station to power energy-saving lamps and appliances in an eco-friendly way. ƒ In Algeria, Siemens provides the technology for a desalination system that serves the water supply system of Tlemcen, one of the country's largest cities ƒ In Morocco, Siemens is involved in the construction of the Tangier wind park, Africa's largest facility of this kind, as well as the Essaouira wind farm ƒ Our local roots are a strong foundation for the success of the Desertec Industrial Initiative

Page 44

December 2010

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Middle East – excellent position in a dynamic market Our history in the region ƒ Werner von Siemens supervised the laying of submarine cable in the Red Sea in 1856 ƒ Ongoing operations in the region since the 1950s ƒ Regional Companies founded in key countries in the 1990s ƒ Active role in developing infrastructure in the industry, energy and healthcare sectors

Examples of our activities in the region ƒ Major order worth €600 million in Qatar for providing technology for the expansion of the national power grid (Lower Gulf Region) ƒ Automation of the rail connection between Dammam und Riyadh with ECTS, first-ever use of this technology in the Arab world (Saudi Arabia) ƒ Complete automation and instrumentation for “Dakahleya Sugar” Line 2 (Egypt) ƒ Dedication of the Tawam Molecular Imaging Center (TMIC). Siemens provided turnkey solutions for this highly advanced center of molecular imaging in the Lower Gulf Region Page 45

December 2010

Corporate Communications © Siemens AG 2009. All rights reserved.

One Siemens – three strategic directions

1

WHAT?

Focus on innovation-driven WAS growth markets

2

WHERE?

Get closer to our customers 3 HOW? Use the power of Siemens

Page 46

December 2010

Corporate Communications © Siemens AG 2009. All rights reserved.

Use the power of Siemens – the people of Siemens are the power of Siemens

Siemens encourages lifelong learning and development

Siemens empowers its diverse and engaged people worldwide

Siemens stands for integrity

Page 47

December 2010

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Our vision and our values Siemens – the pioneer in

Our values Responsible

Energy efficiency

Industrial productivity

Committed to ethical and responsible actions

Excellent Achieving high performance and excellent results

Affordable and personalized healthcare Innovative Intelligent infrastructure solutions

Page 48

December 2010

Being innovative to create sustainable value

Corporate Communications © Siemens AG 2010. All rights reserved.