The Company 2011 Q3 - Siemens · Siemens 2011 Status: July 2011 The Company . ... During...

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© Siemens AG 2009. All rights reserved © Siemens AG 2010. All rights reserved Siemens 2011 Status: July 2011 The Company

Transcript of The Company 2011 Q3 - Siemens · Siemens 2011 Status: July 2011 The Company . ... During...

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© Siemens AG 2009. All rights reserved© Siemens AG 2010. All rights reserved

Siemens 2011

Status: July 2011

The Company

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Major innovationsMajor R&D investments

Our patent position in fiscal 2010:

Germany: No. 3

Europe: No. 2

USA: No. 13

Most recent innovations:

Biograph mMR: World’s first integrated

whole-body MR-PET for precise

measurements of position, type and

activity of tumors

World’s most powerful gas turbine:

With a 60-percent efficiency rating, the turbine drastically cuts fuel

consumption and CO2 emissions

Velaro high-speed train travels up to

350 kilometers per hour, consumes

0.33 liters of fuel per seat and 100 km

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

30,100 R&D employees worldwide

18,000 software engineers

178 R&D locations in over

30 countries around the world

8,800 inventions in FY 2010

57,900 active patents

Innovation is our lifeblood

FY2010FY2007 FY2008 FY2009

5.1%

4.7%4.9%

5.1%

R&D spending in

% of revenue

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Revenue by region

Key figures

Revenue by Sector

Revenue and employees

7,7%

Healthcare€12.4 billion

Energy€25.5 billion

49%

29%

Industry€34.9 billion

Cross-SectorBusinesses€4.9 billion

Americas

Germany

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

15%

40%

18%

Asia, Australia

Location of customer

Continuing operations

(in millions of euros) FY2009 FY2010

Revenue 76,651 75,978

New orders 78,991 81,163

Income 2,457 4,112

Free cash flow 3,786 7,111

Employees 405,000 405,000

Committed to profit and growth

Total Revenue Sectors and

Cross-Sector Businesses

6%

45%

33%

16%

100.000

80.000

60.000

40.000

20.000

500

400

300

200

100

2000

Employees in thousands

1985 1990 1995FY 2010

Revenue in millions of euros

18%

27% 40%

15%

As of September 30, 2010

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As of September 30, 2010 Employees Revenue (billions of euros) Major production facilities

Global presence – basis for competitiveness

22% 27%

91,00020.6

89

Americas

Germany

32%

128,000

11.4

92

15%

Europe, CIS, Africa, Middle

East (excl. Germany)

28% 40%

30.078112,000

Asia, Australia

18% 18%

74,000 13.9

83

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Urbanization

Demographic Change

2007: for the first time in history, more people live in cities than in rural areas. Today 280 million people live in megacities (> 10 million residents)2030: 60 % of the world’s population will live in citiesUrban 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.

Average life expectancy worldwide will increase to 72 years in 2025 from 46.6 years in 1950.World population will grow from more than 6 billion now to 8 billion by 2025.95% of the global population growth is taking place in developing countries.The 65+ generation will nearly double worldwide by 2030 (from 7% to 12%),

Megatrends shape our future

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Climate Change

Globalization

From 1950 to 2004, the volume of global trade has increased 27.5-fold.

The number of global players has grown from 17,000 in 1980 to over 70,000 today.

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.

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

Megatrends shape our future

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Siemens has the answers

1700

300

in Mrd. Euro

Cities are centers of growth

Siemens-relevant

market: €260 – 320 billion

2010 2050

6.9

9.3

50%70%

Cities account for

80% of

greenhouse gas emissions

By 2050, about70% of the world

population will live

in cities

World population in billions

Cities

* Calculations based on OECD data in „Infrastructure 2030“

€1,700billion

Infrastructure spending amounts to €2 trillion*

worldwide / year

Megatrend challenges –Siemens' answers for an urbanizing world

Energy: leading HVDC technology

transmits power from remote energy

sources to cities at low loss

Building technology: "Performance

Contracting" – energy savings of up to

40% finance investments in energy-efficient building technology

Security: complete solutions

Mobility: full spectrum of mobility systems (Complete Mobility)

Water: largest provider of products for

every stage of water treatment

Healthcare: world leader in IT solutions

for healthcare, efficient processes in

hospitals lower costs

260-320

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Sectors and Divisions: Industry

Industry

Divisions

Drive Technologies

Industry Automation

Building Technologies

Mobility

Industry Solutions

Energy

Divisions

Fossil Power Generation

Renewable Energy

Oil & Gas

Energy Service

Power Transmission

Power Distribution

Healthcare

Imaging & Therapy

Systems

Clinical Products

Diagnostics

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Performance in Q3

(in millions of euros)

Industry Sector – overview

Sector profile Revenue by region (FY2010)

Key figures (FY2010)

(in millions of euros)Q3 20111) vs. Q3/10

Revenue 8,082 +7%

New orders 11,806 +54%

Profit 872 +23%

Profit margin 10.8% Trgt: 10-15%

Total revenue 34,869

New orders 34,908

Profit 3,478

Employees 204,000

External Revenue

Location of customer

20%20%

36%

1) April 1 to June 30, 2011

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:

Custom-izedmotors

Velarohigh-speedtrains

Industrialwatertreatment

22%

24%

20%

34%Americas

Germany

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

Asia, Australia

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Industry Sector –Industry Automation Division

New orders / innovations in Q3

The new mobile application for the Siemens PLM software Teamcenter enables the workforce to seamlessly connect to their Teamcenter-enabled product lifecycle management (PLM) environment. Through the use of this new app, which is being initially deployed on the Apple Inc. iPad portable digital device, companies can enhance their ability to interact with product data and workflows at the right time, in the right place and in the right context.

Performance in Q3

Division profile

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 time-to-market by up to 50 percent.

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

(in millions of euros) Q3 20111) vs. Q3/10

New orders 1,885 +6%

Revenue 1,854 +17%

Profit 347 +30%

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Performance in Q3

New orders / innovations in Q3Division Profile

Industry Sector –Drive Technologies Division

Q3 2009 * ggü. Q3/08

Auftragseingang 1.358 -41%

Umsatz 1.699 -21%

Ergebnis 171 -53%

Siemens AG, Diamond Aircraft and EADS are set to present the world's first aircraft with a serial hybrid electric drive system at the Paris Air Show Le Bourget 2011. The aircraft was built to test the hybrid electric drive concept. In the future, the technology will cut fuel consumption and emissions by 25 percent, com-pared to today's most efficient aircraft drives. The Drive Technologies Division supplied the drive train comprising motor, converter and control electronics.

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.

(in millions of euros) Q3 20111) vs. Q3/10

New orders 2,101 +13%

Revenue 2,082 +15%

Profit 292 +42%

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

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New orders / innovations in Q3

Industry Sector –Building Technologies Division

During extinguishing of fires in data centers, hard disk drive operation can be disturbed in very rare cases. One reason can be the high noise level caused by the discharge of the agent. To avoid potential damage, Siemens Building Technologies Division developed the silent discharge nozzle. The specific design allows reducing the noise level to an average of 100dB which drastically reduces the risk of hard disk drive damage.

Performance in Q3

Division profile

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.

(in millions of euros) Q3 20111) vs. Q3/10

New orders 1,910 +5%

Revenue 1,818 +5%

Profit 74 -7%

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

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New orders / innovations in Q3

Industry Sector –Industry Solutions Division

Performance in Q3

Division profile

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.

Industry Solutions has further developed an existing electrolysis system which will be able to generate hydrogen on a large scale for industrial applications and as a means of storing energy. The system is based on PEM (proton exchange membrane) technology, in which electricity decomposes water into hydrogen and oxygen. If the electrolysis uses electricity from regenerative sources, the hydrogen is generated with almost no effect on the climate.

(in millions of euros) Q3 20111) vs. Q3/10

New orders 1,681 +13%

Revenue 1,476 +1%

Profit 77 +22%

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

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New orders / innovations in Q3

Industry Sector –Mobility Division

Performance in Q3

Division profile

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.

Siemens Mobility will build up to 300 new ICx trains to be used in revenue service on the long distance routes of Deutsche Bahn. Worth several billion euros, it is the largest contract in Siemens corporate history. The ICx sets new standards: up to 30 percent less energy consumption, weight reduction of 20 tons, improved aerodynamics and flexible configuration of trainsets.

(in millions of euros) Q3 20111) vs. Q3/10

New orders 4,799 >200%

Revenue 1,481 -7%

Profit 81 -14%

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

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New orders / innovations in Q3

OSRAM*

Super low-profile and incredibly powerful – these are the demands that touch screens place on infrared components. And that’s no problem for the new ChipLED from OSRAM: Its tiny dimensions make it one of the smallest on the market. Combined with its high performance the ChipLED is ideal for low-profile all-in-one computers and laptop displays. And the new infrared ChipLED is so small that it can be easily integrated in smartphones.

Performance in Q3

Division profile

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.

Source: AUDI AG

Beginning in the second quarter of fiscal 2011, results for

the Industry Sector no longer include OSRAM, which is

classified as discontinued operations in connection with

Siemens’ plans for a public offering of OSRAM shares in

fall 2011.

*

Q1 Q2 Q4Q3 FY2011

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Sectors and Divisions: Energy

Industry

Divisions

Drive Technologies

Industry Automation

Building Technologies

Mobility

Industry Solutions

Energy

Divisions

Fossil Power Generation

Renewable Energy

Oil & Gas

Energy Service*

Power Transmission

Power Distribution

Healthcare

Imaging & Therapy

Systems

Clinical Products

Diagnostics

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

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Energy Sector – overview

Revenue by region (FY2010)

External Revenue

Location of customer

Sector profile

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:

Indus-trial gasturbines

HVDCtrans-mission

Wind turbines

Performance in Q3

(in millions of euros)

Key figures (FY2010)

(in millions of euros)Q3 20111) vs. Q3/10

Revenue 6,776 +5%

New orders 8,027 +/-0%

Profit 263 -70%

Profit margin 3.9% Trgt: 10-15%

Total revenue 25,520

New orders 30,122

Profit 3,562

Employees 88.000

15%

Germany

26%

8%

51%

America

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

Asia, Australia

1) April 1 to June 30, 2011, includes a pretax impact of EUR -682 million related to the arbitration decision

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Performance in Q3

New orders / innovations in Q3Division profile

Energy Sector –Fossil Power Generation Division

(in millions of euros) Q3 20111) vs. Q3/10

New orders 3,016 +44%

Revenue 2,595 +11%

Profit -97 n/a

The Gönyü combined cycle power plant in Hungary was officially inaugurated on June 27 in the presence of State President Pál Schmitt. Siemens Energy built the power plant for E.ON on a turnkey basis. Thanks to its high efficiency of over 59 percent and low nitrogen oxide emissions it is the country's most ecofriendly power plant.

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

1) April 1 to June 30, 2011, includes a pretax impact of EUR -682 million related to the arbitration decision

Q1 Q2 Q4Q3 FY2011

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New orders / innovations in Q3

Energy Sector –Renewable Energy Division

Siemens Energy has receiv-ed an order to supply 21 wind for an offshore project in Rudong County, Jiangsu province in China. Commer-cial operation is expected in late 2011. The scope of supply includes a five-year service and maintenance agreement. The 50 MW-project is a break-through in Siemens renewable energy strategy by securing the first offshore wind power order from China.

Performance in Q3

Division profile

(in millions of euros) Q3 20111) vs. Q3/10

New orders 1,543 -32%

Revenue 975 +2%

Profit 68 -45%

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.

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

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New orders / innovations in Q3

Energy Sector –Oil & Gas Division

Performance in Q3

Division profile

(in millions of euros) Q3 20111) vs. Q3/10

New orders 1,321 +4%

Revenue 1,178 +18%

Profit 104 +4%

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

Oil & Gas has developed an integrated solution for the treatment of water be-fore it is pumped back into an oil reservoir to enhance oil recovery (EOR). The modular solution is based on standardized compo-nents and cleans the water after gas/oil/water separa-tion more efficiently and cost-effectively than tradi-tional systems.

Q1

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

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New orders / innovations in Q3

Energy Sector –Power Transmission Division

Siemens Energy is installing a turnkey HVDC back-to-back link to connect the power supply networks of New Jer-sey and New York. In the fu-ture it is estimated that an ad-ditional 660 MW of controlled electric power will be trans-mitted via a high-voltage cable link across the Hudson River from New Jersey to boost the power supply of the megacity New York. The power link is scheduled to come on line in summer 2013.

Performance in Q3

Division profile

(in millions of euros) Q3 20111) vs. Q3/10

New orders 1,453 -19%

Revenue 1,463 -7%

Profit 132 -31%

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.

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

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New orders / innovations in Q3

Energy Sector –Power Distribution Division

Siemens helps to pave the way for an electromobility mass de-ployment in London. The project “Source London” of the local public transport operator Trans-port for London will provide a network of publicly accessible charging points for electric ve-hicles across the city. Siemens delivered the IT backbone for the project as well as the soft-ware for the operation center, which will manage the charging points. The number of charging points is targeted to rise to approximately 1,300 by 2013.

Performance in Q3

Division profile

(in millions of euros) Q3 20111) vs. Q3/10

New orders 883 +15%

Revenue 742 +1%

Profit 52 -46%

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 medium-voltage components and systems, solutions for energy automation and services for electrical systems and networks.

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

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Sectors and Divisions: Healthcare

Industry

Divisions

Drive Technologies

Industry Automation

Building Technologies

Mobility

Industry Solutions

Energy

Divisions

Fossil Power Generation

Renewable Energy

Oil & Gas

Energy Service

Power Transmission

Power Distribution

Healthcare

Imaging & Therapy

Systems

Clinical Products

Diagnostics

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Healthcare Sector – overview

Revenue by region (FY2010)

External Revenue

Location of customer

Sector profile

The Healthcare Sector is one of the world's largest suppliers to the healthcare industry and a trendsetter in medical imaging, laboratory diagnostics, medical information technology and hearing aids. Siemens offers its customers products and solutions for the entire range of patient care from a single source –from prevention and early detection to diagnosis, and on to treatment and aftercare. By optimizing clinical workflows for the most common diseases, Siemens also makes healthcare faster, better and more cost-effective.

Performance in Q3

(in millions of euros)

Key figures (FY2010)

(in millions of euros)Q3 20111) vs. Q3/10

Revenue 2,858 -9%

New orders 3,016 -7%

Profit 8 -98%

Profit margin 0.3% Trgt: 15-20%

Total revenue 12,364

New orders 12,872

Profit 748

Employees 48,500

20%

Germany

42%

9%

29%

Americas

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

Asia, Australia

1) April 1 to June 30, 2011

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New orders / innovations in Q3Division profile

Healthcare Sector –Imaging & Therapy Systems

The Division has added new functions to Syngo Em-bolization Guidance to simplify and accelerate the minimally invasive embolization of benign tumors such as myomas. The new version of the imaging software assists with treatment planning and delivery and makes it possible to check treatment outcomes. SyngoEmbolization Guidance can speed up interventions as compared with previous embolization procedures, meaning that both contrast medium and dose can be reduced.

Today, innovative imaging systems like computer tomographs (CT scanners) and magnetic resonance scanner (MRI scanners) are routinely used in hospitals and doctors‘ offices. They enable early disease detection, reliable diagnosis and effective treatment. Innovative imaging systems allow forms of therapies which are more gentle on patients and also open up treatment options for diseases up to now difficult to treat. The Division is also working on better interlacing imaging and therapy. The Division‘s advanced IT solutions help make healthcare more patient-oriented, open and transparent. Workflow can be designed more efficiently, cutting costs in the process.

Q1

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

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New orders / innovations in Q3Division profile

Healthcare Sector –Clinical Products

The products of the Clinical Products Division address the largest imaging markets – ultrasound and X-ray. In the emerging markets such as India, Brazil, and China, the demand for healthcare services increases continuously. Especially in countries as large as China, healthcare requirements differ tremendously. While healthcare delivery in megacities meets Western standards, the population in rural areas suffers from merely rudimentary services. Having suitable ultrasound and X-ray products for all these different needs is the task of Clinical Products. Additionally, the Division provides essential components for imaging devices suited to the needs of the respective customer.

The new X-ray system Multix Select DR is an entry-level system that facilitates cost-effective access to digital radiography. At a price which is around one third below comparable predecessor products of Sie-mens, Multix Select DR is attractive to small and me-dium-sized hospitals in newly industrializing countries as well as to small hospitals and physicians' clinics in industrialized countries.

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

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Performance in Q3

New orders / innovations in Q3Division profile

Healthcare Sector –Diagnostics

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

(in millions of euros) Q3 20111) vs. Q3/10

New orders 904 -6%

Revenue 892 -7%

Profit 73 -36%

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

New software for the analysis system DCA Van-tage from Siemens automatically converts the results of blood sugar long-term observations into the same units with which patients daily check their blood sugar levels themselves. The long-term values which the doctor measures are consequently more compre-hensible to the patient and can be discussed in com-parison with the patient's own checks, with a view to assessing therapeutic success.

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New orders / highlights in Q3

Cross-Sector Businesses –Financial Services (SFS)

A joint partnership between the Carbon Trust and Sie-mens to provide UK businesses with green equipment finance worth up to £550 million over the next three years has been announced. This major new deal will unlock business investment in the low carbon econo-my. The new dedicated low carbon finance scheme is a first and will enable UK businesses to invest in cost effective energy efficiency equipment or other low car-bon technologies, such as new efficient lighting.

Division profile

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.

Key figuresPerformance in Q3

(in millions of euros) FY2010 FY2009

ROE 37,3% 11.3%

Profit 447 304

Assets 12,506 11,704

Q1

(in millions of euros) Q3 20111) vs. Q3/10

New orders 293 +50%

Revenue 293 +52%

Profit 89 -20%

1) April 1 to June 30, 2011

Q1 Q2 Q4Q3 FY2011

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Equity Investments*

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

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.

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

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

Focus on innovation-driven and technology-drivengrowth markets

Get closer to our customers with local entrepreneurship and local value added - globally

Use the power of Siemens to continuously outperform our competitors

Va

lue

of S

iem

ens

1998 2000 2010

One Siemens10 Point Program

Operation 2003 Fit42010

The pioneer in

Energy efficiency

Industrial productivy

Affordable and personalized healthcare

Intelligent infrastructure solutions

Three strategic directions Vision

2005 2007

Fit4More

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One Siemens – three strategic directions

WASFocus on innovation-drivengrowth markets

1WHAT?

Get closer to our customers

2WHERE?

Use the power of Siemens

3HOW?

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Siemens environmental portfolio

The Siemens environmental portfolio

consists of products & solutions that

contribute directly to environment and climate protection

At €27.6 billion it represents 36% of the

total revenue

We set ourselves a target for the

environmental portfolio of €40 billion for

fiscal 2014

In fiscal 2010 products & solutions of our

environmental portfolio helped our cus-

tomers to save 267 million tons of CO2…

… that equals the total CO2 emitted

by Hong Kong, London, New York,

Tokyo, Delhi and Singapore

Revenue from environmental portfolio

CO2 abatement at customers

(in € billions)

(in millions of tons)

2014 (target)20102009

40

27.6

26.8

20102009

267

214

=> Hong KongLondonNew YorkTokyoDelhiSingapore

Innovation-driven growth markets –dynamic growth of Siemens' environmental portfolio

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1| Renewables

2| Environmental technology

Examples from our environmental portfolio

All environmental

technologies qualify:

Water technologiesAir pollution control

All renewables qualify:

Wind powerGrid access for wind power

Steam turbines for solar thermal power

plants

3| Energy efficiency

Products and solutions with exceptional

energy efficiency qualify:

Combined-cycle power plants

Industrial drive systems

High Voltage Direct Current

(HVDC) power transmission

Traffic management solutions

Efficient lighting

Energy performance

contracting

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1| Desertec Industrial Initiative

3| Electro mobility

Innovation-driven growth markets –Siemens drives technologies of the future

Shaping the future

of transportation

Siemens offers comprehensive solutions

from (charging infrastructure to drives)

Integration von electric cars in power

grid: batteries used to store power

Desert power

for Africa and Europe

Siemens as technology driver

Goal: meet 17% of Europe's demand for

electricity with solar and wind by 2050

2| Smart Grid

4| SMART products

Understanding requirements

in emerging countries

Customized portfolio for

medium price segment

Affordable, high-quality products for the

growth markets of the future

The smart grid

of the future

Flexible grid that enables decentralized

feed-in and better capacity utilization

Smart grids to abate more than 1 billion tons of CO2 by 2020

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One Siemens – three strategic directions

Fokus auf innovations- und

technologiegetriebene Wachstumsmärkte richtenWASFocus on innovation-drivengrowth markets

1WHAT?

Get closer to our customers

2WHERE?

Use the power of Siemens

3HOW?

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Siemens One – our key differentiating factor

Siemens One is an

integral part of our

Integrated Technology

Company

It stands for Customer

Centricity and Key

Account Management

A powerful platform of

collaboration between

Sectors, Divisions,

Clusters and Regions

With global and regional

account teams and

market-specific organizations

More than 1.200 Key

Account Managers

serving our largest

customers worldwide

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A powerful platform of collaboration providingsustainable market specific solutions on a global scale

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Germany – a strong base in our home market

Overview of fiscal 2010

Siemens technology – backbone of Germany’s infrastructure

Every second computed tomography scanner used in German clinics is from Siemens

More than half of the power plants connected to Germany‘s power grid use turbines and generators from Siemens

Grid connection of two offshore wind parks in the north sea and initiation of the worldwide most efficient gas turbine in Irsching

Revenue (in millions of euros) 11,432

Employees 128,400

R&D employees 12,900

Branch office

Global R&D location

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Overview of fiscal 2010

U.S. – broad presence in the world's toughest market

Siemens is modernizing the U.S. infrastructure

Sales (in millions of euros) 14,727

Employees 61,000

R&D (in millions of euros) 1,300

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 projectIn healthcare, we are the No. 1 application service provider, processing an average of 190 million transactions daily for more than 1,000 customersIn industry, we process 100% of the nation's mail

Invested USD 400 million and created some 3,000 green manufacturing jobs

Only major locationsSales & serviceEngineering / R&D

Top manu-

facturing

locations

Manufacturing/assembly

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Overview of fiscal 2010

Brazil – leading position and more than 100-year history

Modernizing the country's infrastructure

Nearly all Siemens Divisions hold #1 or #2 market positions

Siemens equipment and systems are responsible for 50% of the

electrical power generated in Brazil

Involved in two-thirds of all Brazilian offshore platforms defined over

the past 8 years, with clear market leadership30% of all digital diagnostics imaging is performed by Siemens

systems

Headquarters

Regional offices

R&D centers

Manufacturing facilities

1,781 Revenue (in millions of euros)

Employees 10,170

R&D centers 6

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Russia – good reputation in an attractive market

Overview of fiscal 2010

Modernizing Russian industry & infrastructure

Group officeSiemens district officeSiemens Central Office

Energy-efficiency Study for Ekaterinburg to reduce CO2 emissions; related cooperation with Russian partners

Several new strategic partnerships with key players in Russian economy: Russian Railways, Gazprom, Transneft, Federal Grid Company, and Severstal to support modernization and innovation

Strong engagement in the Skolkovo "Innovation City" project

1,200 Revenue (in millions of euros)

Employees 3,327

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India – key growth market

Overview of fiscal 2010

Stable performance in a challenging year

60 new SMART projects to target a market worth over €7 billion

Manufactured India’s first single-phase 500MVA HVDC transformer; first

company to manufacture 145kV gas insulated switchgear locally

Received first turnkey metro rail contract for signaling, electrification, rolling stock and system integration for the new 6.1 km metro line connecting Gurgaon'sCyber City to Line 2 of the Delhi metro

Office

Factory

2,000 Revenue (in millions of euros)

Employees 17,500

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China – strong base in a dynamic environment

Overview of fiscal 2010

Contributions to China's infrastructure

Headquarters

Regional office

North

South East

North

South

East

Together with China Southern Power Grid, we commissioned the Yunnan-

Guangdong HVDC line, the world's longest at 1,400 kilometers, with a

transmission capacity of 5,000 megawatts (MW)

Supplied advanced signaling systems to Beijing Metro Line 10 & 8 Phase 2

Strategic cooperation with China Hospital Association on “Green Hospital”

Contracts worth more than €1 billion related to Expo 2010 in Shanghai

5,800 Revenue (in millions of euros)

Employees 33,600

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Africa – poised for sustainable growth

First activities (selected countries)

Examples of our activities in Africa

South Africa since 1860

Algeria since 1857

Tunisia since the 1930s

Morocco since 1956

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.

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

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

Our local roots are a strong foundation for the success of the Desertec Industrial Initiative

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Our history in the region

Examples of our activities in the region

Major order worth €600 million in Qatar for providing technology for the expansion of the

national power grid (Lower Gulf Region)

Automation of the rail connection between Dammam und Riyadh with ECTS, first-ever use

of this technology in the Arab world (Saudi Arabia)Complete automation and instrumentation for “Dakahleya Sugar” Line 2 (Egypt)

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

Werner von Siemens supervised the laying of submarine cable in the Red Sea in 1856

Ongoing operations in the region since the 1950s

Regional Companies founded in key countries in the 1990s

Active role in developing infrastructure in the industry, energy and healthcare sectors

Middle East –excellent position in a dynamic market

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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 foreignbranch

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

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

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One Siemens – three strategic directions

WASFocus on innovation-drivengrowth markets

1WHAT?

Get closer to our customers

2WHERE?

Use the power of Siemens

3HOW?

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

Siemens empowers its diverse

and engaged people worldwide

Siemens encourages

lifelong learning and development

Siemens stands for integrity

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Our vision and our values

Responsible

Committed to ethical and

responsible actions

Excellent

Innovative

Achieving high performance

and excellent results

Being innovative to create

sustainable value

Our values

Siemens –

the pioneer in

Energy efficiency

Industrial productivity

Affordable and

personalized healthcare

Intelligent infrastructure solutions