Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Q3 2008 Earnings Presentation

15 slides from Siemens Aktiengesellschaft's earnings presentation, Jul 30, 2008

1. Slide 1: Delivering TAP Potential: An update

   Delivering TAP Potential: An update Peter Löscher Joe Kaeser Q3 FY 2008 Conference Call July 30, 2008 Copyright © Siemens AG 2008. All rights reserved.

2. Slide 2: Safe Harbour Statement

   Safe Harbour Statement This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,”

3. Slide 3: Shifting into a higher gear in the third quarter

   Shifting into a higher gear in the third quarter Our Principles … Key takeaways ƒ Growth trend intact – double-digit organic growth Increase ƒ Higher earnings quality – continued strong TRANSPARENCY earnings conversion of value drivers ƒ Share buyback – €4bn executed since Jan-08 Enforce ACCOUNTABIL

4. Slide 4: Highlights of the quarter

   Highlights of the quarter ƒ Excellent top line growth1): order growth +26%, revenue growth +13%; book-to-bill of 1.23x ƒ Order growth driven by Industry (+31%) and Energy (+33%) ƒ Double digit revenue growth across all Energy divisions ƒ Double digit revenue growth as well in shorter cycle businesse

5. Slide 5: What we expect for 2009

   What we expect for 2009 ƒ The overall economic environment will be less favorable ƒ We will grow our revenues twice as fast as the global GDP ƒ Total Sectors profit will be in the range of € 8.0–8.5 bn ƒ Growth in income from continuing operations is expected to exceed growth in Total Sectors profit

6. Slide 6: SG&A and other transformation programs on track

   SG&A and other transformation programs on track 16,750 5,250 Progress status 1,750 ƒ Germany: Other 4,150 Agreement on 3,500 cornerstones of job 5,150 cuts reached, detailed 1,500 negotiations ongoing ƒ Europe: 3,650 Detailing of planning 6,350 ongoing SG&A 12,600 900 ƒ World w/o Europe: Detailing o

7. Slide 7: Aligning management's and owners' interest

   Aligning management's and owners' interest Management bonus Design criteria ƒ Financial targets of own and superior unit based on benchmarks ƒ Effective: Strong alignment with business ƒ Performance relative to competition performance, competitor benchmarks and ƒ Compliance and individual performanc

8. Slide 8: Bonus based on financial targets and relative performance

   Bonus based on financial targets and relative performance Example: Calculation of bonus for top ~50 executive managers Individual Total annual factor Company factor compensation Performance relative to Stock awards financial targets1) and 0 – 250% competition 0.75 – 1.25 0 – 200% Siemens World Bonus

9. Slide 9: Mandatory equity ownership for senior management

   Mandatory equity ownership for senior management Outline of equity-based compensation and incentives framework Management level Elements of equity-based compensation and incentives Mandatory share 300% Long-Term Share matching CEO ownership Incentive ('3 plus 1') of base salary (stock awards) ƒ Mana

10. Slide 10: TAP – consistent execution against plan

    TAP – consistent execution against plan Reporting dates Milestones (deliverables) November 2007 ƒ New organization approved Supervisory Board ƒ Managing Board incl. Sector CEO approved ƒ Sector CFO named December 2007 ƒ Division CEO and CFO named January 2008 ƒ New target margins for Energy and Indu

11. Slide 11: Financial calendar

    Financial calendar July 31 – August 1, 2008 August Post Q3 road shows with CFO in London and New York Various investors and analysts meetings September details to be determined October Quiet period until November 13, 2008 November 13, 2008 November Q4 financial report and analyst conference, London

12. Slide 12: Reconciliation and Definitions for Non-GAAP Measures (I)

    Reconciliation and Definitions for Non-GAAP Measures (I) Profit Total Sectors is reconciled to “Income from continuing operations before income taxes” under “Reconciliation to consolidated financial statements” in the table “Segment Information.” See our Financial Publications at our Investor Relati

13. Slide 13: Reconciliation and Definitions for Non-GAAP Measures (II)

    Reconciliation and Definitions for Non-GAAP Measures (II) Average calculation for CE*: Year-to-Date Q1 2 Point average: (CE ending Q4 Prior year + CE ending Q1) / 2 Q2 3 Point average: (CE ending Q4 Prior year + CE ending Q1 + CE ending Q2) / 3 Q3 4 Point average: (CE ending Q4 Prior year + CE endin

14. Slide 14: Reconciliation and Definitions for Non-GAAP Measures (III)

    Reconciliation and Definitions for Non-GAAP Measures (III) To measure Siemens’ achievement of the goal to grow at twice the rate of global GDP, we use GDP on real basis (i.e. excluding inflation and currency translation effects) with data provided by Global Insight Inc. and compare those growth rate

15. Slide 15: Siemens investor relations team

    Siemens investor relations team Michael Sen +49-89-636-33780 Gerald Brady +1-408-464-2004 Cinzia Fasoli +49-89-636-32474 Florian Flossmann +49-89-636-34095 Sabine Groß +49-89-636-35755 Dr. Martin Meyer +49-89-636-33693 Christof Schwab +49-89-636-32677 Peter Steiner +49-89-636-37124 Katrin Steinwande

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