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The Company 2nd Quarter I 2017 © Siemens AG 2017. All rights reserved. siemens.comDisclaimer This document contains statements related to our future business and financial This document includes supplemental financial measures – not clearly defined in IFRS – performance and future events or to developments involving Siemens that may that are or may be non-GAAP financial measures. These supplemental financial constitute forward-looking statements. These statements may be identified by words measures should not be viewed in isolation or as alternatives to measures of Siemens’ such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” net assets and financial positions or to the results of operations as presented in “estimate,” “will,” “project” or words of similar meaning. We may also make forward- accordance with IFRS in its Consolidated Financial Statements. Other companies that looking statements in other reports, in presentations, in material delivered to report or describe similarly titled financial measures may calculate them differently. shareholders and in press releases. In addition, our representatives may from time to Due to rounding, numbers presented throughout this and other documents may not add time make oral forward-looking statements. Such statements are based on the current up precisely to the totals provided, and percentages may not precisely reflect the expectations and certain assumptions of Siemens’ management, of which many are absolute figures. 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 Risks in Siemens’ Annual Report. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur 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. © Siemens AG 2017 Page 2 May 2017 siemens.comOur founder Werner von Siemens 1816 – 1892 Werner von Siemens was a responsible entrepreneur and far-sighted inventor whose name soon became a household word around the world. Far ahead of his time, he recognized and fostered the link between science and technology. “In my youth, I dreamed of founding an enterprise of world standing comparable to that of the Fugger dynasty …” Werner von Siemens, 1887 © Siemens AG 2017 Page 3 May 2017 siemens.comSecond quarter of fiscal 2017 – Key figures Key figures for Siemens (Q2 2017 Q2 2016) (Continuing operations; in millions of € 1 except where otherwise stated) Q2 2017 Q2 2016 Change in % Q2 2017 Q2 2016 Volume Liquidity 2 Orders 22,629 22,294 1% Free cash flow 738 812 Revenue 20,219 18,996 5% Employees (in thousands) Sept. 30, 2016 Total Profitability and capital efficiency 351 2 Net income Germany 1,483 1,480 0% 113 2 Return on capital employed (ROCE) 13.3% 14.9% Outside Germany 238 1 Portfolio changes and currency effects adjusted 2 Continuing and discontinued operations Results of operations (Q2 2017) Industrial Business 4 Building Digital Factory Energy Mobility Power Process Wind Power Healthineers Financial Technologies Management and Gas Industries and Services 3 and Drives Renewables (SFS) (in millions of €) Orders 1,632 2,864 3,558 2,151 3,855 2,299 3,142 3,369 Revenue 1,604 2,706 2,996 2,022 4,104 2,185 1,516 3,441 5 Profit 235 482 225 213 461 134 155 588 207 6 Profit margin 14.7% 17.8% 7.5% 10.5% 11.2% 6.1% 10.3% 17.1% 26.3% 3 for the last time reported as a Division, as of Q3 2017 Siemens Gamesa Renewable Energy 4 Separately managed 5 Income before income taxes 6 Return on equity (RoE) © Siemens AG 2017 Page 4 May 2017 siemens.comFiscal 2016 – Key figures Key figures for Siemens: Fiscal 2016 Revenue by industrial business (Continuing operations; in millions of € Healthineers 17% Power and Gas 20% except where otherwise stated) Fiscal 2016 Fiscal 2015 Change in % Volume Wind Power and Process Industries Orders 86,480 82,340 5% Renewables 7% and Drives 11% Revenue 79,644 75,636 5% Energy Management 15% Digital Factory 13% Profitability and capital efficiency Building 1 Net income 5,584 7,380 (24)% Mobility 10% Technologies 8% 1 Return on capital employed (ROCE) 14.3% 21.0% Not included: Financial Services (SFS) Liquidity 1 Free cash flow 5,476 4,674 Revenue by region 2 Asia, Australia 19% Europe, CIS , Africa, Employees (in thousands) Sept. 30, 2016 Sept. 30, 2015 Middle East Total 351 348 (without Germany) 39% Germany 113 114 Outside Germany 238 234 Americas 29% Germany 13% 1 Continuing and discontinued operations 2 Commonwealth of Independent States © Siemens AG 2017 Page 5 May 2017 siemens.comGlobal presence Share of total Americas worldwide 1 Revenue €22.7 billion 29% 2 Employees 72,600 21% Share of total Germany worldwide 1 Revenue €10.7 billion 13% 2 Employees 113,400 32% Europe (excluding Germany), 3 Share of total CIS , Africa, Middle East worldwide 1 Revenue €31.1 billion 39% 2 Employees 102,300 29% Share of total Asia, Australia worldwide 1 Revenue €15.1 billion 19% 2 Employees 62,700 18% Close to customers 1 by customer location 2 as of September 30, 2016 all over the world 3 Commonwealth of Independent States All figures refer to continuing operations. © Siemens AG 2017 Page 6 May 2017 siemens.comMegatrends – Challenges that are transforming our world Digitalization In the future, we’ll be living in a world that’s increasingly interconnected by complex and heterogeneous systems. By 2020, the amount of data stored worldwide will have grown to 44 zettabytes. Around 50 billion devices will be linked online. Source: IDC, The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things, April 2014; Dave Evans (Cisco): The Internet of Things, How the Next Evolution of the Internet Is Changing Everything, April 2011 © Siemens AG 2017 Page 7 May 2017 siemens.comMegatrends – Challenges that are transforming our world Globalization Global competition is impacting productivity and production locations. In 2015 the estimated gross domestic product was approximately US 73.2 billion. Source: UNCTAD Statistics, Values and shares of merchandise exports and imports from 1948 to 2014, November 10, 2015 © Siemens AG 2017 Page 8 May 2017 siemens.comMegatrends – Challenges that are transforming our world Urbanization In 2050, nearly 70 percent of the global population will be living in cities (up from 54 percent today). Each year, the world’s cities grow by about 50 million people. As a result, metropolitan areas are increasingly investing in infrastructure. Source: United Nations, World Urbanization Prospects. The 2014 Revision, New York, published 2015 © Siemens AG 2017 Page 9 May 2017 siemens.comMegatrends – Challenges that are transforming our world Demographic change By 2050, the global population will have grown from the current level of 7.3 billion to 9.7 billion – and needs will rise accordingly. Back in 1950, there were only 2.5 billion people on the planet. In addition, average life expectancy will have risen from today’s figure of 73 years to 83 years by 2050. Source: United Nations, Department of Economic and Social Affairs, Population Division (2015). World Population Prospects: The 2015 Revision, Key Findings and Advance Tables. Working Paper No. ESA/P/WP.241; Statista: World Population, 2016 © Siemens AG 2017 Page 10 May 2017 siemens.comMegatrends – Challenges that are transforming our world Climate change According to scientists, in the summer of 2015, the Earth’s atmosphere had the highest CO concentration in 800,000 2 years. In 2015 the UN Climate Change Conference in Paris resolved to limit global warming made by humans to well below 2°Celsius. Source: SCRIPPS INSTITUTE OF OCEANOGRAPHY, “The Keeling Curve”, November 11, 2015 © Siemens AG 2017 Page 11 May 2017 siemens.comMilestones of a 170-year history 1866 1959 1983 2012 1816 – 1892 The dynamo makes SIMATIC makes First magnetic resonance Test operation of the Company founder, electricity part of Siemens a leader in imaging scanner goes world’s largest rotor for visionary and inventor everyday life automation technology into operation offshore wind turbines Werner von Siemens Siemens innovations over the past 170 years 1847 1925 1975 2010 2016 Pointer telegraph Siemens electrifies Breakthrough of TIA Portal takes World’s most lays the foundation the Irish Free State high-voltage direct automation a stage efficient combined of Siemens as a with a hydroelectric current (HVDC) further cycle power plant global company power plant transmission © Siemens AG 2017 Page 12 May 2017 siemens.comOur claim “Ingenuity for life” “Ingenuity” stands for innovation, engineering and genius. For us, it also includes unity: We are united in our efforts, and we are committed to partnering with our customers. “For life” relates to our role in society: to make real what matters. “Ingenuity for life” is therefore our unrelenting drive and promise to create value for customers, employees and society. © Siemens AG 2017 Page 13 May 2017 siemens.comWhat we stand for – Our mission © Siemens AG 2017 Page 14 May 2017 siemens.comVision 2020 – our company’s strategy program Value Scale up Strengthen core Drive performance Foster ownership culture and leadership based on common values 2015 2016 2017 2018 2019 2020 Strategic Operational Accelerated growth Optimization direction consolidation and outperformance © Siemens AG 2017 Page 15 May 2017 siemens.comVision 2020 – Our focus is E-A-D – and there is strong growth in “D” Revenue FY 2016 Market CAGR Strategic direction FY17-20 Siemens software Digital services Digitalization Strengthen leadership  Leader €3.3bn €1.0bn by combining software, +8% platforms & services Cloud data platform: MindSphere 1 +12 % Enhanced Classic services Automation Expand 1 position automation  Global 1 €17bn and utilize for +3-4% €18bn digitalization Enhanced Electrification Differentiate through electrification  Leader enhanced offerings with +1-2% €42bn automation & digitalization Note: Figures based on Industrial Business 1 Growth FY15 to FY16, rebased © Siemens AG 2017 Page 16 May 2017 siemens.comStrengthen portfolio: We’re sharpening our business focus in electrification, automation and digitalization • Added value for our customers increasingly lies in software solutions and Digitalization digital services and platforms • We want to exploit the opportunities offered by digitalization even better • In automation we’ve already captured leading market positions worldwide Automation • We’ve been successfully automating customer processes for years • We intend to maintain and expand these positions Electrification • Our roots are in electrification. We’re a leader in this field • We’re well positioned along the value chain of electrification • We’re capitalizing on a growing installed base and creating customer value through profitable service business © Siemens AG 2017 Page 17 May 2017 siemens.comVision 2020 – Clear intents for our seven overarching goals GOAL INTENT KPI Implement stringent company gover- Live lean governance and €1bn cost savings by FY 2016 achieved, nance with effective support functions drive continuous optimization continued productivity of 3-5% 1 Tap growth fields Strengthen Sharpen our business focus in portfolio electrification, automation, and digitalization 2 8% margin in underperforming businesses 15-20% ROCE Execute financial Grow our company value target system 3 Growth most relevant competitors Expand global Get closer to our customers 30% of Division and BU management management and markets outside Germany 4 Be a partner of choice Foster an intimate and trusting partnership ≥ 20% improvement in Net Promoter Score 1 for our customers with our customers 5 Be an employer Unleash the full potential 75% approval rating in “leadership” of choice of our people and “diversity” in SGES 6 Foster Ignite pride and passion for Siemens, ≥ 50% increase in number Ownership Culture of employee shareholders through a new mindset and equity ownership 7 © Siemens AG 2017 Page 18 May 2017 siemens.comInnovation is our lifeblood Investment in research and development 1 R&D expenditures €4.7 billion 1 R&D intensity 5.9% R&D employees 33,000 1 (worldwide) Inventions and patents 1 Inventions 7,500 1 Patent first filings 3,500 Patents granted 60,000 as of September 30, 2016 University partnerships Center of Knowledge 9 1 Interchange (CKI) universities 1 Principal Partner universities 16 1 in fiscal 2016 © Siemens AG 2017 Page 19 May 2017 siemens.comInnovation – our digital portfolio Design & engineering Automation & operation Maintenance & services Siemens Software Siemens Digital Services Sinalytics Apps MindSphere – the IoT operating system Digitally enhanced Electrification and Automation © Siemens AG 2017 Page 20 May 2017