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Siemens –

Equity Story

Siemens Investor Relations

Unrestricted | © Siemens 2021

Notes and forward-looking statements

This document contains statements related to our future business and financial performance and future events or developments involving

Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,”

“anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. We may also make forward-looking

statements in other reports, prospectuses, in presentations, in material delivered to shareholders and in press releases. In addition, our

representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain

assumptions of Siemens’ management, of which many are beyond Siemens’ control. These are subject to a number of risks, uncertainties and

factors, including, but not limited to, those described in disclosures, in particular in the chapter Report on expected developments and associated

material opportunities and risks in the Annual Report. Should one or more of these risks or uncertainties materialize, should decisions,

assessments or requirements of regulatory authorities deviate from our expectations, or should underlying expectations including future events

occur at a later date or not at all or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or

positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens neither intends, nor

assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

This document includes – in the applicable financial reporting framework not clearly defined – supplemental financial measures that are or may

be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as

alternatives to measures of Siemens’ net assets and financial positions or results of operations as presented in accordance with the applicable

financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative

performance measures may calculate them differently.

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may

not precisely reflect the absolute figures.

Unrestricted | © Siemens 2021 | Equity Story

Our Company

Why to own Siemens shares?

Strategy: Vision 2020+


Our CompanyCompany structure (as of October 1, 2020)

BusinessesSmart

Infrastructure

Digital

Industries Mobility

Portfolio

Companies

Siemens

Healthineers1

Siemens

Advanta

Service & Governance

Countries

1 Publicly listed subsidiary of Siemens; Siemens Healthineers with its own setup for Countries and Service & Governance 2 Siemens’ share in Siemens Healthineers

79%2

71,700Employees

€15.0bn Revenue

21.7%Adjusted EBITA margin

69,600Employees

€14.3bn Revenue


38,500Employees

€9.1bn Revenue


54,300Employees

€14.5bnRevenue


All figures based on FY20


Siemens businesses in a nutshell (1/2)

Digital IndustriesAdvances being made in digitalization – combined with the move toward increasingly flexible manufacturing processes – are creating new

opportunities and choices for industrial companies across the globe. Digital Industries helps its customers unlock their full potential: as a partner

providing cutting-edge technologies for the automation and digitalization of the discrete and process industries.

The Digital Enterprise portfolio is at the core of our offerings. It provides companies of all sizes with the right products, along with consistent solutions

and services for integrating and digitalizing the entire value chain. As an innovation leader, we think ahead to the next level of the digital

transformation and of integrated cutting-edge technologies – such as artificial intelligence, edge computing, industrial 5G, autonomous handling

systems, blockchain and additive manufacturing.

71,700Employees

€15.0bn Revenue


Smart InfrastructureSmart Infrastructure intelligently connects energy systems, buildings and industries to enhance the way we live and work through greater efficiency

and sustainability. By integrating software and hardware, products, systems, and solutions, we make infrastructure more intelligent, responsive and

responsible. Smart Infrastructure unites building technology with energy supply – including low- and medium-voltage power distribution and grid

control. There are exciting growth markets at the grid edge, where these realms meet. In these markets, we ensure that energy is used efficiently – in

generation, consumption and storage, in electric vehicle infrastructure and in microgrids. Our offerings combine physical solutions and digitalization

across the focus areas of electrification and automation.

69,600Employees

€14.3bn Revenue


38,500Employees

€9.1bnRevenue


Siemens MobilityWe use digitalization to enable transportation service providers worldwide to make trains and infrastructure intelligent, increase value sustainably

throughout the entire system lifecycle, enhance passenger experience, and guarantee availability.



Siemens businesses in a nutshell (2/2)

Siemens AdvantaSiemens Advanta enables companies to unlock the digital future by supporting their unique digitalization journey from start to finish. Siemens

Advanta’s key differentiator is its unrivalled combination of deep domain knowledge, the strong Siemens technology stack and a powerful ecosystem

of partners around the globe.

With its three units – Consulting, Solutions & Implementation, and Development – Siemens Advanta’s services begin with strategy and operations

consulting and range from design and prototyping to platform solutions and data services, and from software and applications development all the way

to implementation and operation. Siemens Advanta cares for its clients individually, creating a tailored digitalization journey designed to meet each

client’s specific needs – end-to-end, with all capabilities from a single source.

Portfolio CompaniesUnder the umbrella of the Portfolio Companies, Siemens operates several units that have been bundled together since April 1, 2019. The Portfolio

Companies employ around 24,000 people, and they generated approximately €5.4 billion in revenue in fiscal 2020. With a decentralized setup, fast

decision-making processes and quick reaction times, these units have agile and flexible operations. These advantages make the Portfolio Companies

more competitive in their specific markets and enable them to focus more sharply on their customers.

54,300Employees

€14.5bnRevenue


Siemens HealthineersThe listed company Siemens Healthineers AG aspires to shape the healthcare system of the future. As a leading medical technology company, it

helps healthcare providers around the world to expand precision medicine, transform care delivery, improve the patient experience and digitalize

healthcare. Siemens Healthineers is continuously developing its product and service portfolio with AI-supported applications and digital products that

will play an increasingly important role in the next generation of medical technology.



Siemens Key Figures for Fiscal 2020 (1/2)

1 Excluding currency translation and portfolio effects |

2 Continuing and discontinued operations |

3 Including Siemens Energy

(Continuing operations; in millions

of € except where otherwise stated) Fiscal 2020 Fiscal 2019

Change

in %

Volume

Orders 59,977 64,682 (7)%1

Revenue 57,139 58,483 (2)%1

Profitability und capital efficiency

Net income2 4,200 5,648 (26)%

Return on capital employed

(ROCE)2 7.8% 11.1%

Key figures

Employees

(in thousands)Sept. 30,

2020

Sept. 30,

20193

Total2 293 385

Germany 90 116

Outside Germany 203 269

Fiscal 2020 Fiscal 2019

Liquidity

Free Cash Flow2 6,404 5,845


Siemens Key Figures for Fiscal 2020 (2/2)

1 Commonwealth of Independent States

Revenue

27%27%

28%

17%

24%

27%

Europe, CIS1, Africa,Middle East

(excluding Germany)

Germany

Siemens Healthineers

Mobility

Smart Infrastructure

Digital Industries

Asia, Australia

Americas

32%

17%

By

Region

By

Industrial

Business


Management Managing Board of Siemens AG

Seite 9

1 Until March 31, 2021

Matthias

Rebellius

Judith

WieseCHRO

Dr. Roland

BuschPresident and CEO

Klaus

Helmrich1

Cedrik

Neike

Prof. Dr. Ralf P.

ThomasCFO


Our Company




Vision 2020+ fully on track – major progress achieved

Fostering ownership culture and sharpening the company’s focus

Value

2020 2021 20222019

Ultimate

value creationLeading in all businesses and

shaping the transformationFocusPutting focus

ahead of scale

effects

TransformationAnticipating markets

and trends

▪ Siemens Energy spin-off completed

▪ Sale of Flender to Carlyle signed

▪ SHL: Next steps on Varian transaction

▪ Cost programs

▪ Leverage COVID-19 opportunities

2018

IPO

Healthineers

started

initiated


Vision 2020+ medium-term financial targets unchanged

Fostering ownership culture and sharpening the company’s focus

Value

2020 2021 20222019

Ultimate

value creationLeading in all businesses and

shaping the transformationFocusPutting focus

ahead of scale

effects

TransformationAnticipating markets

and trends

▪ Siemens Energy spin-off completed

▪ Sale of Flender to Carlyle signed

▪ SHL: Next steps on Varian transaction

▪ Cost programs

▪ Leverage COVID-19 opportunities

2018

IPO

Healthineers

started

initiated

REVENUE GROWTH

+2 PPT

EBITA FOR INDUSTRIAL BUSINESSES

+2 PPT

GROWTH IN EARNINGS PER SHARE

> Revenue growth


We are fully committed to deliver on Vision 2020+ targets

▪ Develop business mix towards growth

markets

▪ Expand digitalization and IoT portfolio

▪ Use opportunities in decarbonization

and decentralization of energy

▪ Further outgrow market in Mobility

▪ Rigorous execution of competitiveness

programs

▪ Deliver on Corporate cost reductions

▪ Operational excellence and stringent

project execution

▪ Stringent capital allocation

EBITA FOR INDUSTRIAL BUSINESSES

+2 PPT

REVENUE GROWTH

+2 PPT

Geared to consistently deliver cash conversion of 1 – growth rate


Strategic concept Vision 2020+ gains traction

acquires

Transformational

milestone

Digital Industries Software

Partnership between

two industrial leaders

Completed - listed on

the stock exchange on

September 28th, 2020

Spin-Off


Providing technology solutions to address the greatest challenges of our time

Healthcare system Energy transition

Prosperity

Economic

growth

Productivity

Competitive

industriesAging society

Affordable healthcare

Population

growth

Increase in chronic

diseases

Efficient

infrastructure

Sustainable use of

resourcesPersonalized healthcare

Climate change /

decarbonization

Increasing

demand

Reliable

supply

Distributed

energy systems /

Grid edge

Siemens

Siemens

Healthineers1

Siemens

Energy2

1 Publicly listed subsidiary of Siemens | 2 Publicly listed associate

Hydrogen /

sector coupling

Energy efficiency

Energy

backbone for

society

Digital transformation of industry,

infrastructure and mobility


Digital Industries –Strategic Commitment

Our target is to grow 25% faster than the market.1

We deliver a CCR of 1 – growth rate over the cycle.

We commit to sustain Adj. EBITA margin of 17-23% over the cycle.2

3


Smart Infrastructure –Strategic Commitment

1 based on market growth of ~3% CAGR18-24

Top-line annual revenue

growth of 4-5%1)

Adj. EBITA margin 11-13% by

FY 2021, 13-15% by FY 2023

Cash conversion rate

1 - growth in FY 2019

Expand

• Energy & performance services

• Grid edge portfolio

Leverage

• Grow with focus on verticals

• Extend service scope

Secure

• Further grow product business

• Continue focus on Asia


Further step-up in competitiveness programs

Digital Industries Smart Infrastructure

240

320

320

100

420

FY 2020 FY 2023eFY 2021e

Cumulated savings

in €m

• Additional savings of €100m until FY 2023

• Enhanced internal digitalization, e.g. end-to-end

PLM processes

• Expansion of digital sales channels

• Process optimization of supply chain

• Optimization of space and occupancy cost

55

190

340

FY 2020 FY 2021e FY 2023e

370

30

Cumulated savings

in €m

• Additional savings of €30m until FY 2023

• Process offshoring and automation

Manufacturing footprint optimization

• Further measures for regional optimization and

office space reduction


Deliver on lean governance and corporate cost-out

Global Business Services Lean and effective governance

50

90

FY 2020 FY 2021e

Cumulated efficiency

in €m

210270

45030

FY 2021e

50

FY 2023eFY 2020

Cumulated savings

in €m

• Focus in FY 2020 in certain functions on executing

Siemens Energy spin-off

• Cost reduction efforts ongoing

• Savings target confirmed

• Stable operations ensured by remote working model

• Strong push for process optimization

• Enhanced digitalization competencies, e. g.

innovative purchase-to-pay platform and through recent

partnership with Celonis

Siemens AG

Siemens Energy


Siemens MobilityBest positioned to combine real & virtual world – differentiating from competition

Infrastructure Customer Services TurnkeyRolling Stock

Differentiating from competition with digitalization

Key figures FY 2020: €9.2bn Orders | €9.1bn Revenue | 9.1% adj. EBITA I 39k employees | €32bn Backlog

Page 20

• Vertical market with attractive secular growth trends and profit

pools, allowing superior capital efficiency

• Covering entire customer value chain with mutually-reinforcing

businesses

• Lead digital transformation, benefitting from Siemens IoT

ecosystem and platform

Leading integrated set-up + excellent strategic fit in Siemens

Digitalization deeply transforming the mobility industry

• Cloud instead of hardware and digital twins of rail systems

• Demand responsive transport and Mobility as a Service

• Autonomous trains

• Step changes in energy efficiency for new vehicle platforms

Driving new forms of value creation

• Increase of lifecycle contracts and guarantee of 100% availability

• Asset optimization through connectivity and data analytics


Mobility with clear ambition to further improve the business

>5% >11%

Siemens

accretive

Revenue

growthAdj. EBITA

margin

ROCE

Mid-term targets unchanged

45%

15%

34%

7%

Rolling Stock

Customer Services

Intelligent Traffic Systems

Rail Infrastructure

14%

11%

30%

35%

11%

Americas

Asia / Australia

UK

Germany

EMEA w/o GER/UK

Revenue split by business (FY 2020)

Revenue split by region (FY 2020)


Portfolio Companies’ strategic concept is effectiveActive portfolio management to drive performance and value creation

Valeo Siemens (50%)

Equity

inve

st.

Large Drives Applications

Siemens Logistics

Mechanical Systems &

Components (Sykatec)

Commercial Vehicles

Fully

ow

ne

d

Flender

(Mechanical Drives &

Wind Energy Generation)

1) Siemens Energy Assets (SEA) transferred into POC during Q2 FY20, containing certain remaining regional business activities of Gas and Power,

which were not carved out to Siemens Energy due to country-specific regulatory restrictions or economic considerations

Exit

• Flender sale to Carlyle

signed

• Purchase price (EV)

~€2.0bn

• Closing in H1 CY 2021

expected

Turnaround

• Significant performance

improvement in FY 20

• Continued execution full

potential plans

• Target FY 22: >5% Adj.

EBITA margin for fully owned

Turnaround &

strategic

considerations

Exit

Siemens Energy Assets1)

Ongoing transformation program and ramp-

up investment

FY 20: Revenue: €5.4bn

Free cash flow: €556m

Portfolio Companies (POC) PE – Value creation approach


Execute competitiveness and cost out programs

Priorities for the new chapter

Drive further value creation in portfolio companies

Leverage investments in digitalization to drive high quality growth

Develop strategic path for Siemens AG as one focused technology company

Maintain cash conversion focus

Strengthen and amplify ESG program


Our Company




Sustainable value generation delivering attractive shareholder returns

Capital

allocation Cash

generation

Capital

efficiency/

structure

Sustainable

value

generation

Profitable

growth

€

Leverage innovation strength in

dedicated growth fields and

rigorous focus on productivity

Drive working capital improvement

and cash performance

Disciplined capital allocation

along our strategic imperatives

Improving capital efficiency

while maintaining strong

rating and strategic flexibility


With €6.4bn Free Cash Flow reached the highest level in the past decade

Free cash flow – Industrial Businesses

Free cash flow – “All in”

2,108

7,142

Q3 FY 20FY 2019

789

Q1 FY 20

1,101

Q2 FY 20

3,144

Q4 FY 20 FY 2020

6,696

+7%

2,464

6,404

FY 2019 Q3 FY 20

44 134

Q1 FY 20 Q2 FY 20

3,762

Q4 FY 20 FY 2020

5,845

+10%

€m

€m

Q4: €0.5bn free cash flow from reduction of

operating working capital

FY 2020: Cash conversion rate of 1.07 excl.

Bentley effect and SI divestment gain

exceeding 1-growth target

Q4: Strong performance of Portfolio

Companies

FY 2020: Cash focus gains traction

CCR

0.94CCR

0.86


Leverage R&D investments and partner ecosystems to drive growth

FY 2020

2.0

0.3

FY 2021e

1.3

0.4

0.6

8.1%

4.6

~5.8

~4.9

Continued high level of R&D investment… … combined with strong ecosystem deliver results

SHL

T/Other

SI

MO

DI

€bn

Partnership SAP - Siemens

Integrated end-to-end software solutions

across product lifecycle, supply chain and

asset management

>8%In % of

revenue

Digital process twin

Virtual plant for vaccine production

Faster development time (~25%)

Improved resource efficiency (~10%)

Energy as a Service

Macquarie and Siemens/SFS joint venture

for onsite distributed energy solutions

Mentor – a success story

~40% of DI software business revenue

Electronic Design Automation - core for IC

and electrical systems design


Outstanding Total Shareholder Return70% Dividend Payout Ratio, €1.4bn SBB and ~€7bn Re-rating after SE spin-off

50% 53%38%

52%60%

61%49%

FY 14

€3.00

€3.60

FY 15 FY 16

€0.50

FY17 FY18 FY 20FY19

€3.30€3.80€3.50 €3.70 €3.90 €3.50

Dividend per share Dividend payout ratio Dividend yield

Dividend – multi-year perspective

Status share buyback

€bn

x.x%1)

+10%

FY 14 FY 16

0.2 0.2

FY 15 FY17 FY18

1.00.4

FY19 FY 20

1.1

2.7

0.4 0.91.5 1.4 1.4

Total €4bn Total €3bnTotal up to €3bn

until Nov 2021


as of Nov 5, 2020

~200,000Siemens employees are

already shareholders of

the company

1866Dynamomaschine bringt

Elektrizität in den Alltag

der Menschen

1816 – 1892Unternehmensgründer,

Visionär und Erfinder

1847Zeigertelegraf

als Grundstein

für den späteren

Weltkonzern

1879Weltweit erste

elektrische

Eisenbahn

As of September 28, 2020 (without Siemens Energy)


Investor Relations

Internet: www.siemens.com/investorrelations

E-Mail: [email protected]

Telephone: +49 89 636-32474

Fax: +49 89 636-1332474


http://www.siemens.com/investorrelations

mailto:[email protected]

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