siemens the company 2015

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Siemens AG 2015. All ri ghts reserved. siemens.com

The Company

January 2015


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January 2015Page 2


Key figures for f iscal 2014Siemens at a glance

Revenue by industrial business

Revenue by region

Healthcare 16%

Process Industriesand Drives 13%

Digital Factory 13%

Mobility 10%

BuildingTechnologies 8%

EnergyManagement 15%

Wind Power andRenewables 8%

Power and Gas 18%

Not included: Financial Services (SFS)

Europe, C.I.S.*, Africa,

Middle East (withoutGermany) 39%

Germany 15%

Asia, Australia 20%

Americas 26%

(continuing operations; in millions of ,except where otherwise stated) FY 2014 FY 2013 % Change1

Volume

Orders 78,350 79,755 1%

Revenue 71,920 73,445 1%

Profitability and capital efficiency

Return on capital employed (ROCE) 17.2% 13.7%Net income2 5,507 4,409 25%

Capital struc ture and liquidity

Free cash flow 5,399 5,378

(in thousands) Sep. 30, 2014 Sep. 30, 2013

Employees

Total 343 348

Germany 115 117

Outside Germany 229 231

1 Comparable, excluding currency translation and portfolio effects.

2 Continuing and discontinued operations.

* Commonwealth of Independent States


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Global presenceClose to customers all over the world

10.9

115,000

69

Revenue (in billions of )2

15% of total worldwide

Employees333% of total worldwide

Key production facilities4


18.870,000

76


26% of total worldwideEmployees320% of total worldwide



14.4

62,000

74






38.7

211,000

139






Americas

Germany

Europe, C.I.S.,1Africa, Middle East(including Germany)

Asia,Aust ral ia

All figures refer to continuing operations.

1 Commonwealth of Independent States. 2 By customer location. 3 As of September 30, 2014. 4 Fifteen employees or more.


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January 2015Page 4


Research and developmentInnovation has always been the foundation of our success

Employees in R&D Ranking in patent applications

R&D spending as % of revenue Partnerships

28,800

13,200

15,600

R&D employeesworldwide

R&D employeesin Germany

R&D employees in approximately30 other countries worldwide

FY 2014

4.1 bi llion

5.75.5

FY 2014FY 2013

Siemens currently holds approximately 56,100patentsgranted worldwide

partnerships with universities, research institutesand other organizations around the world1,000

No. 4Germany(2013) No. 13

USA(2013)

No. 2Europe(2013)


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January 2015Page 5


1 Continuing and discontinued operations.

2 Employees in management positionsinclude all managers with disciplinaryresponsibility, plus project managers.

3 Excluding travel expenses.

EmployeesAn employer who opens up opportunities

WWW.SIEMENS.COM/CAREER

Fiscal year ended September 30,

2014 2013

Employees (continuing operations) in thousands 343 348

Total employees1 in thousands 357 367

Female employees in management positions(as a percentage of management positions)1, 2 in % 15.6 15.6

Expenditures for continuing education1, 3 in millions of 276 265


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January 2015Page 6


MegatrendsHow digitalization is transforming our world

Worldwide data volume doubles every two years.By 2020, it will have grown to 40 zetabytes thatsa 50-fold increase within ten years

Worldwide revenue of the IT and communications

industries reached a record 4.1 trillion in 2014.

Digitalization boosts GDP a 10% increase in thedigitalization level of a country leads to a 0.75%rise in per capita GDP.

Revenue from apps alone amounted to US$72 billionin 2013 and will more than double by 2017

4.1trillionWorldwide revenue

in 2014

40zetabytesData volume

by 2020

US$72billionRevenue from apps

in 2013

0.75%rise10% increase leads to

in per c apita GDP


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MegatrendsHow globalization is transforming our world

Global tradeBetween 2000 and 2012 the total volumeof global trade tripled.

Growth of emerging marketsBy 2030, China will have overtakenthe U.S. as the worlds largest economy,and Brazil will overtake Japan.

Multinational companiesThe supply chains of global companiesaccount for about 80% of global trade.

tripledGlobal trade volume

betw een 2000 and 2012

ChinaBy 2030

will be the worldslargest economy

~80%Supply chains account for

of global tr ade




MegatrendsHow urbanization is transforming our world

Growth of cities

2009 For the first time in history,more than 50% of the worlds populationlived in cities.

2050 70% of the worlds populationwill live in cities.

Megacities worldwide

1970 two megacities with morethan 10 million inhabitants

2025 37 megacities; more than14% of the worlds population willlive in a megacity.70%

By 2050

of the worlds population

will live in cities

37megacitiesBy 2025

worldwide




MegatrendsHow demographic change is transforming our world

World population

2012 7.1 billion people

2050 9.6 billion people Worldwide life expectancy at birth

2012 70 years

2050 82 years

By2050, the share of the population aged60 or over will, for the first time, equal theshare of the population younger than 15.

9.6billionBy 2050

people worldwide

82yearsBy 2050

life expectancy




MegatrendsHow climate change is transforming our world

2013 highest CO2concentration in theatmosphere in 800,000 years

2001 to 2010 warmest decade on record

800,000

Highest CO2concentration in

years




Vision 2020Three cornerstones for a successful future

A clear mission A lived ownership cu lture A consistent strategy




Vision 2020A clear mission

We make real what matters. Thats our

aspiration. Thats what westand for. Thats what sets us apart.A reflection of our strong brand, its themission that inspires us to succeed.

Making real what matters

Our mission




Vision 2020A lived ownership culture

EquityWe strongly believe that employee shareholdersact responsibly and are oriented to the long termwhen they directly participate in their Companyssuccess. Thats why the equity culture is anintegral part of our ownership culture.

LeadershipOur managers should serve as role models forthe Companys strategic direction and ensurethe sustainable and efficient use of availableresources thus inspiring and empoweringtheir teams to give their best for the Company.

BehaviorsEntrepreneurial behavior should be thestandard and foundation for how we act atSiemens. This applies to each individualin the Company since only then canbehaviors constantly evolve and improve.

People orientationWe strive for a people-oriented approach thatvalues and clearly fosters diversity of experienceand expertise. If this is reflected in all that we do,well improve the performance of our Company.

ValuesIf everyone in the Company acts responsibly,

achieves excellent results and is innovative,they will personally contribute to the sustainablesuccess of Siemens. Responsible, excellent,innovative these values are the foundationof our ownership culture.

Ownershipculture




Vision 2020A consistent strategy

With our positioning along the electrificationvalue chain, we have know-how that extendsfrom power generation to power transmission,power distribution and smart grid to theefficient application of electrical energy.

And with our outstanding strengths inautomation, were well equipped for the

future and the age of digitalization.

Setting the course

Our strategy




Vision 2020Timeline for the implementation of our strategy

2015 2016 2017 2018 2019 2020

Foster ownership culture and leadership based on common values

Drive performance

Strengthen core

Scale up

Strategicdirection

Operationalconsolidation

Accelerated growth andoutperformance

Value

Optimi-zation


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Vision 2020Seven goals

Implement st ringentcorporate governance

Execute financialtarget system

Be a partner of choicefor our customers

Foster anownership culture

Create value sustainably Expand global management Be an employer of choice

Goal:Cut costs by

billi on by 2016

Goal:ROCE of

most relevant

competitors

Goal:Growth

Goal: Goal:

improvementin Net Promoter

Score

increase in thenumber of emplo yee

shareholders

Goal:Tap growth fields andget underperformingbusinesses back on track

Goal:

of Division andBusiness Unitmanagementoutside Germany

Goal:

approval rating in thecategories Leadershipand Diversity in our globalengagement survey

50%20%20%~ 115%

to

75%>30%>

>


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PortfolioWell positioned in electrification, automation and digitalization

Digital transformation

Digitalization

Globalization

Automat ion

Urbanization

Demographic change

Climate change

Power

generation

Energy

application

Power transmiss ion,power distributionand smart grid

Imaging andin-vitro diagnostics

Expected annualmarket growth r ate20142020:

~ 79%

~ 46%

~ 23%

Electrification

Our setup is aligned with framework cond itions worldwide, with the long-term trends that defineour markets, with our competitive environment and w ith the requirements o f customers, partnersand societies.


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Digitalization at SiemensCombining the physical and virtual worlds

Virtual world

Physical world Siemens installed base

Analytics

Fleet managementEmbedded software

Neural networks

Fault recovery

Smart gridsNetwork planning

Meter Data Management

Efficient buildings

Traffic management

e-Tolling Digital FactoryPLM Collaboration

in the cloudMES

Imaging software

Image guided therapyDecision support

280,000connected devices

> 16 terabytesof operations data every month

>

CAx


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Digitalization at SiemensLeveraging technologies to deliver customer value

Digitalization

Automation

Electrification

Design&EngineeringHighest productivity&shortened ti me-to-market

Maintenance&ServicePredictive, prescriptive&efficient services

OperationsNext level of flexibility&resilience in operations

Security, ease-of-use,manageable com plexity

Big Data&

Analytics

Cloud

Mobile&

Collaboration

Connectivity&Internet of Things

Leveraging key technology enablers along our entire portfolio to create next level of customer benefits.


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Managing Board

Customer-oriented organizationSetup as of October 1, 2014

Global presence and go-to-market of our businessesAmericas Europe and Africa C.I.S.1and Middle East Asia and Australia

Powerand Gas

WindPower andRenewables

EnergyManagement

BuildingTechnologies

Mobility DigitalFactory

ProcessIndustriesand Drives

Power GenerationServices

Corporate CoreCorporate Services

Healthcare(separatelymanaged withglobal supplychain)

FinancialServices

1 Commonwealth of Independent States.


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Power and GasPowerhouse in power generation

We offer a broad spectrum of products and solutionsfor the environmentally compatible and resource-saving

generation of electricity from fossil and renewable fuelsand for the reliable transport of oil and natural gas. Ourcustomers are utilities, independent power producersand engineering, procurement and construction (EPC)companies as well as businesses in industries such asoil and gas.

WWW.SIEMENS.COM/AR/POWER-GAS

FY 2014 FY 2013

Orders in millions of 13,996 15,100

Revenue in millions of 12,720 14,016

Employees (as of September 30) in thousands 42 45


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Wind Power and RenewablesWorld market leader in offshore wind power

Were one of the leading providers of solutions inthe growing field of onshore and offshore wind power.To maximize cost-efficiency a key factor in theindustry were further optimizing our manufacturingand logistics processes and driving innovations inplant technology. By rigorously adapting our offeringsto diverse regional conditions, we provide customerswith optimized solutions that precisely meet theirmarket-specific requirements.

WWW.SIEMENS.COM/AR/WIND-RENEWABLES

FY 2014 FY 2013


Revenue

in millions of 5,567 5,382Employees (as of September 30) in thousands 12 11


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Building TechnologiesWorld leader in building technologies

Were the worlds leading provider of safe, secure,energy-efficient and eco-friendly buildings andinfrastructures. As a technology partner, consultant,service provider, systems integrator and productvendor, we have offerings for fire safety, security,building automation, heating, ventilation, airconditioning and energy management.

WWW.SIEMENS.COM/AR/BUILDING-TECHNOLOGIES

FY 2014 FY 2013





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January 2015Page 25 Siemens AG 2015. All ri ghts reserved. siemens.com

MobilityTransportation solutions for the future

We combine all Siemens businesses in the area ofpassenger and freight transportation including rail

vehicles, rail automation systems, rail electrificationsystems, road traffic technology and IT solutions. Ourservice offerings maximize vehicle and infrastructureavailability. Our end-to-end portfolio is furtheraugmented by turnkey project competencies aswell as targeted financing solutions.

WWW.SIEMENS.COM/AR/MOBILITY

FY 2014 FY 2013





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Digital FactoryIndustrie 4.0 partner for manufacturers today and tomorrow

The Digital Factory Division offers a comprehensive,seamlessly integrated portfolio of leading edgePLM software solutions and automation technolo-gies covering the complete life cycle from productdesign and production execution to services. Thishelps manufacturing companies all over the worldto enhance the flexibility and efficiency of their

processes and reduce time to market.

WWW.SIEMENS.COM/AR/DIGITAL-FACTORY

FY 2014 FY 2013





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Process Industries and DrivesIncreased productivity, shorter time to market

Were building on our leading market position in thegrowth field of process industries and drives. Witha clear focus on customer requirements now and in

the future, we offer products, systems, solutions andservices across entire life cycles for all industry sectors.As a trusted partner, we deliver the innovativeand integrated technologies and the related industryexpertise that ensure our customers competitivenessand sustainable growth.

WWW.SIEMENS.COM/AR/PROCESS-INDUSTRIES

FY 2014 FY 2013





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HealthcareNext-generation medical technology

Were one of the worlds largest suppliers of techno-logy for the healthcare industry and a leader in medicalimaging, laboratory diagnostics and solutions for thehealthcare IT. Since October 1, 2014, Healthcare isseparately managed within Siemens. This gives usgreater entrepreneurial freedom to tailor our businessprocesses to the needs of customers. Our aim is to

help them meet the challenges of a changing businessenvironment and successfully make the transition tonext-generation healthcare.

WWW.SIEMENS.COM/AR/HEALTHCARE

FY 2014 FY 2013

Orders

in millions of 12,126 12,338Revenue in millions of 11,736 11,983



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Financial ServicesOptimal financial solutions for business customers

Were a provider of business-to-business financialsolutions. We facilitate customer investments withleasing and equipment solutions as well as projectand structured financing. In addition to providing cap-ital for customers of Siemens and other companies,

we also serve as an advisor and manager of financialrisk within Siemens. Our combined financial andindustry know-how creates value for our customersand enhances their competitiveness. By providingaccompanying financing, we also build trust in newtechnologies and enable innovative business models.

WWW.SIEMENS.COM/AR/SFS

FY 2014 FY 2013

Total assets in millions of 21,970 18,661

Allocated equity in millions of 2,148 1,938



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Siemens in GermanyBackbone of infrastructure

FY 2014 FY 2013


Employees (as of September 30;continuing operations) in thousands 115 117

More than half of the power plants connectedto Germanys power grid use Siemens turbinesand generators.

Siemens technology partner for Germany

About 1% of Germanys jobs are directly orindirectly linked to Siemens.

Every second computed tomography scannerin German clinics is from Siemens.


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Siemens in EuropeBoosting the continents competitiveness

More than 80% of the automobile factories inEurope use Siemens automation and drivetechnologies.

Siemens automation systems improveefficiency at factories throughout Europe.

More than half of Europes installed offshorewind power capacity is from Siemens.

One third of the buildings that are usedcommercially in Europe are equipped withSiemens building technologies.


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Siemens in the United StatesSustainable solutions for the worlds largest economy

FY 2014 FY 2013



Over the past 15 years, Siemens invested morethan US$25 billion in the U.S.

Gas turbine in Siemens plantin Charlotte, North Carolina

Siemens power generation solutions help meetone third of the country's total energy needs.

Our acquisition of Dresser-Rand, the premiumequipment provider for the oil and gas industry,is designed to strengthen our business inNorth America. It will enable us to get closerto customers there and become a key playerin the American oil & gas revolution.


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Siemens in BrazilReliable infrastructure partner

Siemens helped to develop an intelligent systemfor monitoring and controlling power transmissionin real time, uniting complex Brazilian electricalgrid under one smart digital center.

Control center of Brazils nationalgrid operator ONS

More than 50% of the electrical power in Brazil isgenerated by Siemens technologies.

13 Siemens plants and eight Siemens R&D centersare located in Brazil.

FY 2014 FY 2013


Employees (as of September 30;

continuing operations) in thousands 6 8


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Siemens in RussiaModern technologies for the worlds largest country

FY 2014 FY 2013



Key components for a power station that willsupply power to Yamal liquefied natural gasproduction plant in Northern Russia

Sapsan in Russia

Water supply and drainage system forSt. Petersburgs municipal water supplyand waste water treatment

Angiography systems for Federal MedicalResearch Centre Almazov in St. Petersburg

1,200 Lastochka trains to be producedat Ural Locomotives plant


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Siemens in IndiaIntegrated solutions for Indias sustainable progress

Siemens installed worlds longest lab automationtrack at Thyrocare.

FY 2014 FY 2013



Capacitive Voltage Transformer

Siemens signed Memorandum of Understanding withGovernment of Gujarat and Steel Authority of India(SAIL) for skill development of industrial workforce.

Siemens reinforced its commitment as a partnerfor Indias National Grid Agenda by supplyingCapacitive Voltage Transformer for Power Grids1,200kV National Test Station project.


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Siemens in ChinaA local company

FY 2014 FY 2013



Siemens provided energy-saving retrofitsolutions for Area A of the Canton Fair Complex.

Siemens, a local partner

Siemens and Beijing Automotive IndustryHolding Co., Ltd. signed a joint ventureagreement to produce highly efficient motorsand inverters for hybrid and electric vehicles.

Siemens received an order to provide four CO2compressors for a coal liquefaction plant ofShenghua Ningxia Coal Industry Group Co. Ltd.


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Siemens in Afr icaPioneer in sustainable development

In Nigeria, Siemens commissioned the 434 MW Geregu IIgas-fired simple cycle power plant in Ajaokuta, Kogi State.

Power plant in Geregu

Siemens is playing an active role in Africas renewableenergy drive having built and building new wind farms inMorocco and South Africa.

In Mozambique, Siemens is delivering and installingthe technology that will supply power to the deep waterseaport of Nacala-a-Velha.

Siemens is helping upgrade Africas rail infrastructure providing signaling technology for Mozambiques Nacala-Moatize line and upgrading greater Johannesburgs rail

system.


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Siemens in the Middle EastTechnology partner of choice

In Qatar, Siemens is building the Middle Easts mostenergy-efficient tram system.

Siemens technology partnerfor the Middle East

Abu Dhabis 1.6GW Shuweihat S3 combined cyclepower plant (CCPP) was handed over by Siemensin 2014. This completes the trio of S1, S2 and S3,producing a combined 4.6GW.

Siemens will supply the turnkey system for twodriverless metro lines in the worlds largest subwayproject in Riyadh, Saudi Arabia.

Siemens supplied a full building managementsystem to Dubai International Airport.

Siemens is implementing full lab automation atBahrains King Hamad University Hospital.


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Si AG 2015 All i ht d i

ContactFurther information and information resources

Siemens AG

CG EI SPWittelsbacherplatz 280333 MunichGermany

Internet WWW.SIEMENS.COM

E-mail [email protected]

Further information

About SiemensWWW.SIEMENS.COM/ABOUT

PressWWW.SIEMENS.COM/PRESS

Investor RelationsWWW.SIEMENS.COM/INVESTORS

InnovationWWW.SIEMENS.COM/INNOVATION

Jobs & CareersWWW.SIEMENS.COM/CAREERS

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