Siemens Aktiengesellschaft · XETR:SIE

Siemens Aktiengesellschaft — Siemens — Deutsche Bank 10th German Corporate Conference 2007

20 slides from Siemens Aktiengesellschaft's conference presentation, Jun 21, 2007

1. Slide 1: Siemens – Deutsche Bank 10th German Corporate Conference

   Siemens Deutsche Bank 10th German Corporate Conference June 21, 2007 Joe Kaeser, CFO

2. Slide 2: Disclaimer

   Disclaimer This presentation contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words as “expects”, ”looks forward to”, “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will” or wor

3. Slide 3: Continued focus on value creation

   Continued focus on value creation Performance • Performance • Portfolio • Operational Excellence Fit4More • People Excellence • Portfolio & • Corporate ( ) Performance Responsibility • Operational Operation 2003 Excellence ( ) • Target Margins • People Excellence • Integration Atecs • Corporate 10 P

4. Slide 4: Fit4More – execution has been key

   Fit4More – execution has been key April 2005 – Start Fit4More Program Fit4More delivered Fit4More: Profit & Growth Program • Transformational program initiated top-down Performance Operational People Corporate and Portfolio Excellence Excellence Responsibility ƒ Solve Mobile Devices ƒ Siemens Manage

5. Slide 5: Fit4 2010 – comprehensive and broadly established

   - comprehensive and broadly established Fit4 2010 is a … comprehensive program • Company program developed by People Excellence Portfolio complete management team ƒ Develop talent globally ƒ Build on our strengths in ƒ Strengthen leadership ƒ Energy & development Environmental ƒ Attain high performa

6. Slide 6: New developments

   New developments Governance structure CEO change Compliance challenges Page 6 June 2007 Deutsche Bank 10th German Corporate Conference

7. Slide 7: Comprehensive compliance program has been set up

   Comprehensive compliance program has been set up Major sources New Compliance Program Goal External advisors Benchmark in (Fairfax, Davis Polk, Prevent Detect Respond Compliance and PWC) Transparency by 2010 ƒ "Tone from the top" ƒ Compliance organization Investigators (Debevoise, Deloitte, ƒ Traini

8. Slide 8: We focus our financial resources on value creation

   We focus our financial resources on value creation* Top Groups high Profiteers C E RO ROCE** 6% 4 –1 >1 Substance Keepers High Growth Groups low 1x GDPworld 2x GDPworld Growth Growth * Size of bubble = Value contribution of Groups (EVA) Organic Growth ** ROCE = Group EBIT / avg. business assets Page

9. Slide 9: What's on the CFO's mind?

   What's on the CFO's mind ? Role of CFO Looking ahead • 4 Cs: • Focus on organic growth • Continuity • Wise consideration of the M&A sellers market • Culture • Cash conversion through • Confidence • Moderate Capex spend • Commitment • Streamline NWC turns • Strict adherence to Fit4 2010 program • Mov

10. Slide 10: We are committed to providing shareholder return

    We are committed to providing shareholder return Net Dividend Payments in EUR Balance Sheet Considerations 1.80 € G R 1.60 € CA 1. Share buyback: % 1.40 € 10 Don‘t expect a share buyback in the short-term 1.20 € AGR C 2. Convertible: 1.00 € 6% Multiple options 0.80 € 3. Gearing: 0.60 € ƒ Debt capaci

11. Slide 11: Next focus area: capital structure

    Next focus area: capital structure Net debt / EBITDA* 1.80 1.56 1.60 1.40 1.24 1.20 1.00 1.00 1.00 0.94 0.85 0.80 0.60 0.40 0.23 0.20 0.00 2001 2002 2003 2004 2005 2006 2007 Net Debt** (bn.€) 8.9 6.8 6.4 1.7 6.0 8.3 13.8 EBITDA (bn.€) 8.9 7.3 6.5 7.3 7.0 6.7 8.8*** * 2001 to 2004 US GAAP, from 2005

12. Slide 12: Siemens – creating value

    Siemens – creating value ƒ Great company with huge potential ƒ Clear goals ƒ Work to do ƒ Expecting future enhancements ƒ Execution is key Page 12 June 2007 Deutsche Bank 10th German Corporate Conference

13. Slide 13: Appendix

    Appendix June 2007 Deutsche Bank 10th German Corporate Conference

14. Slide 14: Key figures

    Key figures Q2 FY07 Δ yoy In millions of euros FY06 (in %, except for (IFRS) (IFRS) EPS) New orders 23,469 +9 84,702 Sales 20,626 +10 76,253 Group profit 1,964 +49 4,499 (from Operations) Net income 1,259 +36 3,335 Earnings per share 1.34 +0.36 3.51 (in €, not diluted; change in €) Net cash (901)1)

15. Slide 15: Margin ranges increased for nine out of eleven Groups

    Margin ranges increased for nine out of eleven Groups New margin Margin ranges ranges Q2 FY07 Fit4More Fit4 2010 SIS 5-6% 5.2% 5-7% A&D 11-13% 14.2% 12-15% I&S 4-6% 4.6% 5-7% SBT 7-9% 7.5% 7-9% PG 10-13% 10.7% 10-14% PTD 5-7% 8.1% 7-10% TS 5-7% 5.0% 5-7% SV 5-6% 6.3% 7-9% Med 11-13% 13.4% 13-15% Osr

16. Slide 16: ROCE Definition

    ROCE Definition Income from Continuing Operations (post tax), before net interest expense Post-tax ROCE from Continuing Operations = Capital Employed (for Siemens, including SFS, SRE and Treasury) Source Income (loss) from continuing operations (i.e. post tax) (Profit and Loss Statement) +/– Other i

17. Slide 17: Cash Conversion Rate Definition

    Cash Conversion Rate Definition Free Cash Flow Cash Conversion Rate (Continuing Operations) = Income from Continuing Operations Source Cash Flow from Operations (Continuing Operations) (Cash Flow Statement) + Additions to intangible assets and property, plant and equipment (Continuing Operations) (f

18. Slide 18: Financial calendar FY07

    Financial calendar FY07* June 21-22 Capital Market Days 2007, Berlin June July 26 Third quarter financial results FY07 – conference call July November 8 Preliminary figures for FY07 November November 9 Annual analyst conference, Munich January 24 January Annual General Meeting * Preliminary, updates

19. Slide 19: Reconciliations and definitions

    Reconciliations and definitions ”Group profit from Operations” is reconciled to ”Income before income taxes” of Operations under ”Reconciliation to financial statements” on the table ”Segment information.” See ”Financial Publications/Quarterly Reports, FY07 Q2, Financial Statements” at our Investor

20. Slide 20: Siemens Investor Relations Team

    Siemens Investor Relations Team Marcus Desimoni +49-89-636-32445 Roland Bischofberger +49-89-636-36165 Florian Flossmann +49-89-636-34095 Irina Pchelova +49-89-636-33693 Christof Schwab +49-89-636-32677 Susanne Wölfinger +49-89-636-30639 Webpage: http://www.siemens.com Investor Relations e-mail: inv

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