We’re addressing the world’s toughest questions.

What will the world look like in the future?

Answers.

Joseph E. Stiglitz

“We live in a time of big, very urgent questions. The world population is rapidly expanding, putting pressure on the environment like never before. Natural resources are becoming scarcer. These changes are really setting the agenda for business for the coming decades.

To go from where we are to where we need to be is going to require innovation. Ordinary individuals on their own won’t be able to solve these problems. This transition is going to require new technologies, the kind of innovation that only industry can deliver.

The smartest thing that businesses can do now is to think towards the future. If you are in business today, you don’t need a consultant to write your mission statement. The world is writing it for you. And industry has to respond practically overnight.

The big questions feel big because they are big. They stare you in the face and they dare you to do something about them. What we really need are convincing answers. And we need them now.”

“Answers: the world’s most precious resource.”Joseph E. Stiglitz, Nobel Prize winner

Answers for the environment.

www.siemens.com/answers

How can we deliver cleaner energy today?

Wind farm, Sweden:

Efficient energy from an inexhaustible source.

Gas turbine, Germany:

A new dimension of sustainable power generation.

“ Renewable energies are evolving rapidly, ...” Gerald Doucet

Gerald Doucet

“ We have the energy to save the planet.”

Gerald Doucet, World Energy Council

“Fossil fuels will continue to be a part of the energy mix for well into the 21st century. But more and more sources of renewable energy will be added. We need both, fossil and renewable fuels. Thanks to innovative technologies we will be able to produce energy in the most ecologically friendly way, thus reducing emissions.

One of the challenges we’re facing today is the increasing number of mega-cities with more than 25 million inhabitants each. There, energy is needed in huge quantities and has to be transported to the right place at the right time. The energy transmission systems of the future are absolutely critical for this.”

Underwater energy transportation“Basslink”, the undersea cable connection, Australia

Energy sources aren’t always located where the energy is needed. Victoria State, Australia, relies on the help of the neighboring island of Tasmania – and on the technological innovations of Siemens.

Tasmania generates its electricity almost exclusively from environmentally friendly hydropower. It shares part of that electricity with the Australian main land. The question is “how?” if they are separated by 295 kilometers of sea. The answer: with “Basslink”, the longest undersea cable connection in the world. Here the HVDC (High Voltage Direct Current) trans- mission developed by Siemens is used. As consortium lead of the project, Siemens is responsible for the entire HVDC and its key components. With HVDC, large quantities of electricity can now be transmitted more efficiently across vast distances, and the trans mission can take place in both directions. This way Tasmania can acquire its electrical power from mainland Australia in times of drought when the dam reservoirs are not sufficiently filled.

Hans-Otto Rohwer, Siemens Energy Sector: “Here in

Irsching we have installed the world’s largest gas turbine,

which will provide energy for nearly two million people.”

“... but in order to fulfill the energy demand of the future, fossil fuels are indispensable.”Gerald Doucet

Shanghai, the most important industrial city in China, is still growing as fast as ever. To meet the increas-ing energy demand, technologies are re quired that generate as much energy as possible in the most efficient and environmentally friendly manner. How can this be accomplished even when coal, a fossil fuel, is used?

The answer from Siemens is called Waigaoqiao. Waigaoqiao is one of the world’s most efficient and environmentally friendly coal-fired power plants. The steam turbines installed by Siemens have deliv-ered energy to Shanghai since 2004. Waigaoqiao is extremely efficient, 45%, compared to the world average of around 30%. This saves 2.1 million tons CO2 per year. Siemens will also supply two steam turbines and one generator for the third unit of the Waigaoqiao power plant, ensuring another success-ful chapter in the efficient conversion of coal to electricity.

Clean energy for ChinaThe coal-fired power plant, Waigaoqiao

More and more electrical power needs to be gener- ated to meet the worldwide energy demand, in an environmentally friendly, cost-effective and efficient manner. Siemens responds with gas turbines that set new standards in operating efficiency and power: in the E.ON Irsching power plant, the world‘s most powerful gas turbine has been in its test phase since late 2007. The 340 megawatts set a new world record and provide enough power to supply the population of a city such as Barcelona with electricity. After the test phase, the system will be extended to become a combined cycle power plant which will also enable it to use the hot exhaust gas for power generation. This way the plant will achieve another world record of more than 60% efficiency in comparison to the usual 58.5%, resulting in 40,000 fewer tons of CO2 emissions per year. That’s also a world record; this time in climate protection. Behind this success are numerous innovations by Siemens, such as the computer-opti-mized shape of the turbine blades and new materials which give the blades a particularly high resistance to high temperatures.

A turbine for the record booksGas turbine at Irsching, Germany

Efficiency and Sustainability Energy Management in Austria

Sustainable business models are vital to long-term market success. Companies need integrated IT solutions that allow them to perfectly exploit the potential of these models. This includes the intelligent connection of the technical and business systems as well as the responsible and efficient use of resources.

To optimally manage its energy demand and consumption, South African Pulp and Paper, one of the world’s largest paper manufactur-ers, has opted for Siemens IT Solutions and Services’ “Decentralized Energy Management System”. Thanks to this system in the plant near Graz energy generation and distribution can be planned and controlled to precisely fulfill demand. This way the company always has an up-to-date overview of all the relevant data and can operate with foresight and, in all respects, efficiently.www.siemens.com/it-solutions

Catching and taming the windOffshore wind farm, Lillgrund, Sweden

With energy consumption on the rise, fossil fuel becoming scarce and expensive, and climate change occurring across the globe, it makes sense to in-crease the use of renewable energies. Wind power will play a central role in this.

Siemens is well-equipped for this task: our company is the world leader in offshore wind farms. A recent example is the Lillgrund wind farm in Sweden. Generating 110 megawatts, it supplies electricity to 60,000 Swedish households in an environmentally friendly and reliable way. Siemens has provided, installed, and commissioned 48 wind turbines. An intelligent solution was also developed connecting the wind farm to the power grid. Siemens is the only company that can provide both wind turbines and the infrastructure for the connection to the grid.

www.siemens.com/energy

Research and DevelopmentRWTH Aachen University, Germany

To maintain a leading position in global competition, a company has to be inno-vative. Throughout the world, Siemens collaborates with hundreds of universities and public and private research institutes. This enables us to promote and combine expert knowledge and further develop our technology and competency portfolio. One example of such collaboration is with RWTH Aachen University in Germany, where together we’re developing inno vative so- lutions to make effective use of heat loss from electrical systems in industry.www.siemens.com/innovation

Answers for industry.

www.siemens.com/answers

How can we meet consumer demands as fast as they arise?

Complete Mobility, England:

Sustainable mobility and a better quality of life.

Water treatment, USA:

Transforming waste water into potable water.

“Demands on mobility and infrastructure are constantly growing ...”Ram Charan

Ram Charan

“What we want to achieve, we will achieve.”Ram Charan, author

“More and more people are entering the global economy. More than half the population is already living in cities. Urban areas are exploding, with huge implications on manufacturing, trade and mobility. If you think today‘s cities are congested, imagine what it will be like when you drive with three billion other drivers.

There are three challenges: mobility, security, and infrastructure. And all three create huge opportunities for companies and a huge challenge for local authorities.

What is not possible today will be- come possible tomorrow. We need to create technologies that will solve the problems and that are scalable for multiple cities.

The human mind has always been creative and innovative. Therefore we will find the solutions that will provide a better future for everyone.”

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Tim Nichols, Siemens Industry Sector:

“PLM software from Siemens speeds the

time-to-market by allowing the simulation

and testing of production scenarios long

before the first screw is tightened in the

real world.”

The customer is king, even in times of globali zation. For this reason companies need to develop better products that respect individual customer require-ments. There is a need to imple ment innovations more efficiently, with out long costly processes. How can business keep up? Our software for Product Lifecycle Manage ment (PLM) allows companies to digitally simulate pro ducts and their production environ ments. It en compasses the entire lifecycle from design all the way to the factory. Eclipse Aviation, with its sixseat Eclipse 500 very light jet, is an excellent case in point. This jet aircraft was designed, con structed, and optimized completely in the virtual world. As a result of the digital control of each individual development step, design and manu facturing errors as well as time delays were re duced to a minimum before the jet took off in the real world – with amazing success. Powered by PLM software by Siemens, this innovative process ensured that the Eclipse 500 costs less than any other comparable aircraft.

Reduced costs and time-to-marketDigital development with PLM technology, USA

Technical skills and soccer – not only on the field are these terms closely connected. Siemens is the “Official Technology Partner” of FC Bayern München and makes sure that the fans get to enjoy innovative, top-class tech nology from their journey to the stadium right through to the final whistle. Traffic control systems show them the best route to the stadium. The visitor stream control ensures that everyone gets to their seats without problems. Another technical highlight is the way the outside of the stadium lights up: de-pending on the occasion, white, blue, or red. The innovative interaction of solutions for security, fire prevention and comfort, as well as the integrated IT infrastructure, all increase the stadium‘s efficiency, protecting people and assets.

Perfect teamwork Top technologies in the Allianz Arena, Germany

Julia Schmid, Siemens Industry

Sector: ”The stadium holds 69,000

people. A video system with 90

cameras constantly monitors the

stadium and its visitors to ensure

a safe environment.”

A small revolutionLED headlights

To increase road safety, more and more countries have made daytime running lights mandatory. But how can this requirement be met without having the creative leeway in car design fall by the wayside? The answer to this is a small revolution: light-emitting diodes (LED) from OSRAM as the technological basis for state-of-the-art headlights.

What sounds so simple brings a sparkle to engineers’ and designers’ eyes. Thanks to modern chip technol-ogy and a special casing, LED for headlights produce an exceptionally bright light that corresponds to day-light. They use less energy and last longer. Since LED are small, the styling possibilities are almost endless. This allows car manufacturers to create a spectacular headlight design. They’re already lighting the way for the new Audi R8 and Audi A4 as well as in the high- beam, low-beam, and daytime running lights of the new Cadillac Escalade.

“... that’s why solutions have to be even more comprehensive and innovative.”Ram Charan

www.siemens.com/industry

A solid financial basis for innovationBengaluru Airport, India

©Eclipse Aviation Corporation, 2008

©AUDI AG, 2008

To turn good plans into good projects you need a partner that can provide solid and reliable financing. Siemens Financial Services can do just that, as demonstrated during the planning and construction of the airport in Bengaluru (the former Bangalore), India. Since the financial investments of the public sector were limited, the airport came about as a so-called public private partnership: an association of public institutions and pri-vate investors. Siemens is also participating with 40% in the equity capital of the airport. The success of Bengaluru is in part based on the fact that Siemens understands how to link financial expertise and industry competency.www.siemens.com/finance

Reclaimed waterA sustainable solution for California

While the world population is increasing, the supply of fresh water is declining. This is especially true in arid climates and regions stricken by seasonal drought. What is the answer to this problem?

One solution is water reuse. Siemens provides ad van ced water treatment technologies that reclaim waste- water for agricultural, industrial and indirect potable use. One example is in California, where the Orange County Water District takes secondary treated waste-water that was formerly discharged into the ocean, and further treats it with a membrane filtration system that removes suspended solids, bacteria and other contaminants. The membrane-treated water is sent to a reverse osmosis and advanced oxidation system, then pumped into recharge basins or barrier wells where it is blended with other groundwater. The water treatment system reduces the amount of waste- water Orange County discharges into the ocean, provides a new local water source, and also helps improve the overall water quality in the groundwater basin. This is just one example of how Siemens is helping a com-munity meet its current and future water needs.

Less traffic congestion in LondonIntegrated traffic management with Complete Mobility

London, a vibrant metropolis – yet time and time again the mobility of its inhabitants was reduced by too much traffic. Countless traffic jams, polluted air, and high noise levels were among the unpleasant consequences for its people and environment. Is that the price we need to pay for a mobile society? How this can be improved is demonstrated by Siemens with integrated mobility solutions that intelligently interlink road and railway. It’s controlled in such a way that the existing infrastructure is used efficiently, and pressure on the environment is noticeably reduced. For London, Complete Mobility means a new regional fleet improves commuter traffic; Heathrow Express and Heathrow Connect provide a quick link between the city and the airport; traffic information and control systems as well as the downtown traffic tolls regulate traffic. The result: downtown traffic has been reduced by 20%, meaning 150,000 fewer tons of CO2 emissions per year. To amplify these positive effects, Siemens has implemented a satellite-aided control system that improves passenger information for the routes of some 8,000 London buses.

Answers for life.

www.siemens.com/answers

How can we get a rapid diagnosis right here?

Dr. Ralph Weissleder

Information technology:

The key to transparency and efficient processes.

“We must detect diseases before they break out.”

Dr. Ralph Weissleder

Precise diagnostics:

Integrated high-tech solution for a better life.“Our existing healthcare systems are un-able to cope with population growth and in particular with the challenges of an aging society. Costs are skyrocketing, with the effect that health may become un-affor da ble really fast.

The key for success is in being able to de-tect and treat illnesses much, much earlier than we do now. On the one hand, this would improve both the chances for com-plete recovery and the patients’ quality of life – on the other hand, a big part of the costs incurred for treating fully developed illnesses could be saved. In medicine and biology, completely new ideas for innovative solutions are being developed – on a molecular level. Thanks to these innovative technologies, illnesses can be diagnosed at an earlier stage so that many medical interventions and treat-ments will no longer be necessary. These technologies are the basis for an individual treatment that’s tailored precisely to the needs of each respective patient.”

“Preventive medicine is the recipe for a healthy future.”Dr. Ralph Weissleder, Scientist

“ Those who can better visualize illnesses make them easier to cure.” Dr. Ralph Weissleder

Building know-how for tomorrow’s answersThe Siemens Graduate Program (SGP)

www.siemens.com/healthcare

New talent and knowledge are our most im-portant capital, which we specifically grow and develop with the Siemens Graduate Pro gram (SGP), our two-year management talent trainee program. SGP attracts excellent graduates from different fields and prepares them for their future management role by having them solve various tasks while work- ing in different functions and business areas. Just like Katja Pschorn, an SGP trainee from Human Resources. She got acquainted with the sectors Healthcare, Energy and Industry, already taking over responsibility for a number of projects. In challenging training environments, she increased her knowledge, and staying in Singapore for six months expanded her horizon. After all, SGP not only aims at training the participants’ business skills but intends just as much to foster their personal development.www.siemens.com/career/sgp

Dr. Christian P. Schultz, Siemens Healthcare Sector: “One out

of two people will be diagnosed with cancer at some point

in their lives. If we are able to diagnose this early enough, the

chances for a complete recovery would greatly improve.”

Fast on-site helpQuick diagnosis allows the right therapy

The sooner an illness or an injury is diagnosed, the better the chances for a complete recovery. A fast, precise and reliable diagnosis helps to find the right therapy and to avoid unnecessary medical inter ven-tions. Often, it is imaging techniques that pro vide doctors with this vital information.

That’s why Siemens developed an ultrasound system that provides visual information at the first point of patient contact – reducing delays, when time can be a matter of life and death. The ACUSON® P10 is handy, portable and very flexible to use. It delivers a sharp image instantly and helps determine the condition of the patient.

This little device is a great example for the way in which Siemens helps to improve early detection and diagnosis of illnesses with a broad range of imaging systems.

Beyond institutional boundariesThe web-based electronic patient record

In healthcare, a vast amount of administrative and medical data is being collected: medical histories and ECG’s, x-ray and other clinical images, lab test results, diagnostic findings and much more. How can doctors be granted fast, secure access to this vital data at any time?

With a whole range of intelligent IT solutions and con-sulting services, Siemens helps to improve out comes by connecting the healthcare continuum with solu-tions that enable increased workflow in hospitals of all sizes. For the numerous hospitals belonging to the Rhön-Klinikum AG in Germany, for instance, Siemens – in cooperation with the clinic operating company – has developed a web-based electronic patient record, on which all relevant patient data can be saved (if the patient agrees). This record can be accessed by all institutions involved in the therapy: hospital fa cilities as well as external medical practices. This helps support doctors’ decisions on diagnosis and therapy, saves time and reduces costs – enabling doctors and nursing staff to fully concentrate on the patient’s well-being.

For many forms of cancer, an early detection and treatment is the best – sometimes even the only – chance for the patient. That’s why Siemens takes a holistic approach, very closely linking early, precise diagnos tics with a focused therapy: specific tests may facilitate the early diagnosis of a prostate carc inoma, new methods in mammography may help save va lu-able time in breast cancer therapy. High resolution, contrast agent-enhanced imaging methods aid bi-opsies and the exact localisation and delimination of tumors, which increases the precision and thus the success of radiation therapy and operations. This suc-cess, and also potentially reoccuring tumors, might be documented by new tests and imaging processes. This seamless interaction of new technolo gies for lab and imaging, supported by highly efficient in-formation techno logy, avoids the tremendous strain and costs of a therapy against a fully-developed cancer – improving the chances for a full recovery.

Many paths to a common goalNew holistic approaches in the fight against cancer

Innovative methods of early detectionCombining the most modern laboratory medicine, imaging processes and information technology

Many illnesses, especially severe ones, start insidi-ously and then can no longer be treated, or treatment becomes very difficult. Wouldn’t it be great if they could be detected considerably earlier so that children could grow up healthy and grown-ups could stay healthy longer?

Not only would this be great, it is actually possible: molecular medicine is the key to understanding processes inside the human body on a cellular and molecular level, making it possible to diagnose illnesses earlier and to provide individual treatments. In order to ensure that patients will benefit from such modern methods and processes as soon as possible, Siemens works in close cooperation with scientists and doctors.

To understand what happens on a molecular level, two procedures are being used: in-vitro diagnostics, i. e. lab analysis, and in-vivo diagnostics, the view from outside into the body. Siemens is the first fully integrated diagnostics company, bringing together imaging and lab diagnostics, therapy, and healthcare

information technology solutions, supplemented by consulting and support services.

In the improved early detection of diseases, biomarkers play an important role: for example proteins that can be used to diagnose illnesses. Currently Siemens is de-veloping new markers for early recognition of cancer and Alzheimer‘s disease. With the in-vivo imaging – for example with PET·CT devices – they can be localized and their activity traced.

To be able to assess all information, Siemens provides doctors with an intelligent assistant: GeneSim, the Internet-based knowledge portal. Fed with the collected data of the patient, GeneSim digs into the medical databases of the world and finds out which genes and proteins are in a direct relationship with a disease. It provides knowledge about the illness and shows ways to develop new medicines. What sounds so futuristic already exists: in the laboratories of Siemens Corporate Technology, the smart Internet platform is already operating successfully.

Today, “SkyHydrant” is already a spring of hope

The heart and soul behind this project and the Skyjuice Foundation is Rhett Butler. From his experience as a Siemens engineer with Memcor Australia, he knew that Memcor’s low-pressure membranes were an ideal method for purifying low-grade waters, particularly impure waste water. However, the existing Memcor industrial systems were much too expensive for people in developing countries who needed them most.

Butler simply refused to accept that this “enabling” and beneficial technology could not be reconfigured into a more affordable design. In the late nineties, he began his work on a scaled-down version of the filter cartridges in his garage. Several iterations were developed and eventually, years later, “SkyHydrant” was finished. The core Memcor membrane functioned identically to large systems but this low-cost manual system was a fraction of the cost of ex-isting designs. Most important, the “SkyHydrant” was easy to manufacture, easy to handle and easy to maintain.

Inspired by his success, Butler founded a non-profit organization to create awareness of “SkyHydrant” and to install it where it was needed most. Skyjuice systems are now used extensively in developing communities and disaster relief emergencies. Especially in Africa, there are many issues relating to the availability of clean drinking water. The real problem there is not the ab-

sence of rainfall, but rather the absence of possibilities to safely and reliably purify water.

The “SkyHydrant” can do this effortlessly. In the Kenyan villages Obambo and Kadenge there are now three of these systems. Each device can purify 1,000 liters of wa-ter per hour. The units are totally effective in removing dirt, bacteria and any viruses. The water flows under gravity from the membrane for immediate dis tribution. For the people in the villages, “SkyHydrant” is a mag-nificent tool for survival. To Rhett Butler, “SkyHydrant” presents a realistic chance to solve one of the world’s most urgent problems: safe affordable availability of potable water. “With today‘s tech nology this can be done”, the Siemens man con-fidently claims. Worm infections, typhoid or cholera, all caused by dirty water, can also be avoided. Butler’s next vision is to establish a network of 200 test stations with “SkyHydrant” systems as soon as possible.

Rhett Butler has impressively led by example when it comes to responsibility for the environment and society. For his efforts, he was awarded the Siemens Corporate Responsibility Award 2007.

www.siemens.com/responsibility

The value of our values is already evident nowFor Siemens, corporate responsibility is a value of great importance

“The knowledge and the skills we use in our daily job

cannot simply be switched off at the end of the work day.

Thinking in the categories of technology, solutions,

and also a sense of responsibility are always there.”

Rhett Butler, Siemens Industry Sector

With size comes responsibility: Siemens is actively en gaged in nearly 190 countries. In many of them, Siemens has been deeply embedded in the eco nomy and the society for decades. And it is not only the competitive edge we provide our cus tomers that matters – it also involves improving the quality of life for the people in these countries in a sustain able way.

To be capable of innovation also means taking on responsibility. It is thanks to our most important capital that we can meet this challenge: employees that search for the right answers, armed with curi - o sity and creativity, know-how, and commit ment.

Em ployees that follow the proclaimed company values of Siemens: responsible, excellent and innovative. These values are the foundation of our corporate culture.

What sounds like theory does have some very practical implications. One of them is “SkyHydrant”, a mobile water purification device with ultra-modern filter sys tems which changes waste water into clear and po table water. An excellent example of how expert knowledge and philanthropy come together at Siemens.

Peter Löscher, President and CEO of Siemens AG

Responsible – Committed to ethical and responsible actionsExcellent – Achieving high performance and excellent resultsInnovative – Being innovative to create sustainable value

Our Values

A world of proven talent delivering breakthrough innovations giving our customers a unique competitive edgeenabling societies to master their most vital challenges and creating sustainable value

Our Vision“Siemens stands for innovation, quality and reliability. We’re delivering the right answers to the toughest questions of our time – as over 400,000 Siemens employees are proving every day for customers in nearly 190 countries around the world. Our innovative products, systems and solutions set the standards. For example, our environmental portfolio can help cut global greenhouse gas emissions by 275 million tons by 2011 – an amount equal to the total CO2 emissions of six major cities, in-cluding London, New York and Tokyo. Our new company structure has made us faster, more focused, less complex and even closer to our customers. In everything we do, we continue to honor the values defined by our founders in 1847: responsible, excellent and innovative.”

Answers to the world’s toughest questionsConclusion and outlook by Peter Löscher

©2008 by Siemens AG Berlin and Munich All rights reserved Siemens Aktiengesellschaft Order-No.: A19100-F-P123-X-7600 Printed in Germanywww.siemens.com/answers

RZ: A. Leidecker Siemens Corporate-Broschüre DEUTSCH RÜCKTITEL

Format: 210 x 280 mm 4c + Cool Green (Pant 5493) + Petrol (Pant 321), AS SIM=CC 08/11/25