The Company 2006

Status: October 2006 Our vision – Setting the pace

ƒ A growth company that provides every customer with the highest sustainable value. ƒ One of the world's most successful companies in the electrical industry. Number one or two in all of its businesses. ƒ Technology leader in the global electrical industry. ƒ One of the most valuable companies in the world. ƒ Attractive to the best and brightest in the world. Our employees are proud of their company. ƒ Committed to an ambitious value code: Humaneness, equal opportunity, strict ethical standards in all business dealings.

Page 2 Siemens’ innovations have changed the world

Energy

From the invention of the dynamo – to the world’s most efficient gas turbines

Automation

From the first electronic controls – to fully automated factories

Healthcare

From the first views inside the body – to full-body 3D scans Page 3 Siemens’ innovations have changed the world

Transportation

From the first electric railway – to 310-mph maglev trains

Communications

From single messages on a single line – to millions of simultaneous calls

Lighting

From the first commercial metal filament lamp – to high-tech organic LEDs Page 4 Innovation is our lifeblood

Major R&D investments Major innovations

ƒ €5.2 billion in fiscal 2005 ƒ Our patent positions (2005): ƒ 47,000 R&D employees Î Germany: No. 1 worldwide Î Europe: No. 2 Î U.S.: No. 9 ƒ 30,000 software engineers ƒ 150 R&D locations in over ƒ Recent breakthroughs: 30 countries around the world Î Piezo injection ƒ 8,800 inventions in 2005 (reduces fuel consumption by 20%) ƒ 53,000 active patents Î Softswitch (true carrier-grade reliability: 99.999%)

Î syngo (workflow integration – up to 25% time savings)

Î Combined cycle power plant (increases degree of efficiency: 58.8%)

Page 5 Our innovations continue to make headlines

Page 6 Active in six business areas

Automation Information and Power Transportation Medical Lighting Communications and Control

Communications* Automation and Power Generation Transportation Medical Solutions Drives Systems Industrial Power SiemensBusiness Solutions and Transmission and Siemens VDO Services Services Distribution Automotive Siemens Building * Since Oktober 1, 2006 represented by Siemens Networks GmbH & Co. KG and Technologies Siemens Enterprise Communications GmbH & Co. KG 26% 23%

16% 19% 10% 6%

External sales of Operations Groups excluding Other Operations Page 7 As of September 30, 2005 Global Megatrends – shaping tomorrow’s markets

Urbanization ƒ Today: 280 million people in megacities ƒ (> 10 million) ƒ 2007: First time in human history more people living in cities than in rural areas ƒ 2015: 350 million people in megacities Î Challenge for infrastructure Global Megatrends

Demographic change ƒ Average life expectancy increases globally ƒ Population growth from more than 6 billion to 8 billion by 2025 ÎChallenges for infrastructure and healthcare

Page 8 Well prepared to master global challenges

Healthcare ƒ Percentage of 80+ generation to grow globally ƒ Healthcare costs in industrialized nations rise to €3.8 trillion in 2010 (2002: €2.9 trillion) ƒ In Germany, healthcare costs account for 10.7% of GDP Siemens today ƒ No. 1 in healthcare IT ƒ Technology leader in imaging systems ƒ Innovation leader in healthcare processes

Industry ƒ Increasing consumption of oil (until 2030 CAGR 1.8%), natural gas (2.5%) and coal (1.6%) to fuel global energy demand requires efficient systems and solutions for mining industries ƒ Increasing world population requires efficient production and supply of food and goods Siemens today ƒ Leading solution provider for mining, oil & gas industries ƒ Number 1 in industry automation

Page 9 Well prepared to master global challenges

Water ƒ 1.2 billion people without drinking water ƒ 2.4 billion people not connected to waste water systems ƒ 40% increase in water consumption by 2025

Siemens today ƒ Drinking water treatment ƒ Water distribution ƒ Wastewater treatment

Power ƒ More than 40% increase in worldwide energy demand in the coming 25 years ƒ Increase of CO2 emission risk to global climate Siemens today ƒ Strong No. 2 in power technologies worldwide ƒ Complete range of fossil fuels, wind power, biomass and fuel cells ƒ Trendsetter in intelligent power generation and distribution ƒ Low-loss electricity transport

Page 10 Well prepared to master global challenges

Mobility ƒ 2010: Per passenger airline mileage will double compared to 1995 ƒ Americans spend 3.5 billion hours a year stuck in traffic jams Siemens today ƒ High-performance rail systems ƒ Telematics solutions ƒ Fleet management ƒ Communications solutions

Security ƒ Need for more efficient urban security systems ƒ Larger and more frequent events in mega-stadiums

Siemens today ƒ Single supplier of integrated electronic security solutions ƒ Ticketing systems ƒ Biometric identification systems

Page 11 Leaders in application areas with high-growth potential

Energy & Environmental Care

Automation & Control, Industrial & Public Infrastructures

Healthcare

Page 12 Committed to profit and growth

Stock performance (in millions of euros; continuing operations) FY 2005 FY 2004 Siemens 135 Sales 75,445 70,237

110 Orders 83,791 75,789 Euro Stoxx 50 Net income 3,058 3,450 85 Cash flow -1,489 3,015

2003 2004 2005 Employees 461,000 424,000

Sales and employees Sales by region

100,000 500 Others Employees in thousands 8% 80,000 400 Asia-Pacific Germany 13% 21% 60,000 300

40,000 200 25% 20,000 100 Americas 33% Sales in millions of euros Europe 84/85 89/90 94/95 99/00 04/05 (excl. Germany) Page 13 As of September 30, 2005 Global presence – basis for competitiveness

Germany 36%

25% 21%

Europe 165 15.7 72 (excl. Germany) 33% Americas 27% v € ) 33% 21% 25% 22% 125 24.4 61 101 19.1 96 Asia-Pacific 15% v € ) 12% 13% v € ) 58 10.1 44 Others v € ) 8% 6% 3% v Employees (thousands) 12 6.1 18 € Sales (billions of euros) v € ) ) Major facilities As of September 30, 2005 Page 14 Siemens Networks GmbH & Co. KG and Siemens Enterprise Communications GmbH & Co. KG

ƒ Fixed networks* Every third phone call worldwide is processed with Siemens technology.

ƒ Mobile networks* More than 250 mobile network providers in more than 100 countries rely on Siemens technology. Some 90% of UMTS subscribers worldwide use network technology from Siemens and our partner, NEC.

ƒ Enterprise networks One million enterprises use Siemens communi- cation products. With 88 million work points, Siemens is No. 1 in real-time communications.

*Planned to be part of Siemens Networks (subject to customary regulatory approvals, the completion of standard closing conditions, and the agreement of a number of detailed implementation steps)

Page 15 Siemens Networks GmbH & Co. KG and Siemens Enterprise Communications GmbH & Co. KG

Sales* (in millions of euros) (in millions of euros) FY 2005 Group profit margin Target: 8-11% Sales* 13,141

12,238 12,708 13,141 Orders* 13,802 3.5% 5.6% Group profit* 454

-2.0% Employees* 55,000 2003*) 2004 2005 * Figures not consolidated No. 1 IP PBX systems Sales* by region Others No. 1 UMTS networks 15% Germany (with partner NEC) 21% Americas 13% No. 1 Wireless modules 16% 35% No. 1 IP convergence for carriers Asia-Pacific Europe (excl. Germany)

Page 16 *concerning the former group Communications (Com) Siemens Networks GmbH & Co. KG

Siemens Networks* engages in a dialog with its customers to create trendsetting communications solutions that help network operators and service providers achieve their business goals. Siemens Networks contributes its innovative strength, worldwide experience and unsurpassed implementation expertise in all areas of voice and data communications. Siemens Networks is a fully-owned subsidiary of Siemens AG and operates in about 100 countries. * Siemens Networks will merge into a 50-50 joint venture with the Business Group, that will be called Nokia Siemens Networks. The new company Nokia Siemens Networks is expected to start operations by January 1, 2007, subject to customary regulatory approvals, the completion of standard closing conditions, and the agreement of a number of detailed implementation steps. Page 17 Siemens Enterprise Communications GmbH & Co. KG

About 17,000 employees in 80 countries develop and implement a forward-looking portfolio of products, applications, and services oriented to the needs of the customers. Solutions are based on open standards and can be seamlessly integrated into existing infrastructures. Comprehensive services that include consulting, implementation and maintenance round out the portfolio. Business processes are thus made faster, more productive, and more secure. Siemens Enterprise Communications GmbH & Co. KG, a wholly owned, -based Siemens subsidiary, is one of the world’s leading vendors of Open Communications solutions for companies of every size. Page 18 Siemens Networks GmbH & Co. KG and Siemens Enterprise Communications GmbH & Co. KG

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march Recent major customer wins april ƒ Telefónica Deutschland GmbH is upgrading its network into one of may the largest alternative broadband infrastructures in the German market. To this end, Telefónica has awarded Siemens a contract to june expand its inner-core backbone. Siemens will also maintain a july

service organization to support Telefónica's network operation in aug ensuring the constant availability of the network. ƒ Large-scale VoIP network for the Royal Moroccan Police Forces – sept 10,000 police stations, 25 regional sites and 70 local sites will be oct

networked to one another and to the head office – nov integrating an existing WAN IP network. dec Page 19 Siemens Networks GmbH & Co. KG and Siemens Enterprise Communications GmbH & Co. KG

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Innovation at work june

Intel Corporation and Siemens will soon be working together in the july development of open unified communications solutions based on Voice over Internet Protocol (VoIP). Cooperation will focus on aug secure wireless networks and real-time open unified sept communications, as well as on collaboration with regard to industry-specific solutions. The goal is to drive business process oct optimization for key market segments such as telecommunications nov service providers, financial services and digital healthcare. dec Page 20 Siemens Business Services (SBS)

ƒ Siemens Business Services is an internationally leading provider of IT services specializing in IT outsourcing and innovative IT solutions.

ƒThe comprehensive portfolio of multi-vendor IT solutions and services for both private- and public sector organizations ranges from systems integration consulting right through to management of IT infrastructures.

ƒ As a part of the globally operating Siemens organization, Siemens Business Services will be focusing consistently on those industries served by Siemens overall. Operations and solutions business will be closely intertwined.

Page 21 Siemens Business Services (SBS)

Sales (in millions of euros) (in millions of euros) FY 2005 Group profit margin Target: 5-6% 6,034 5,773 5,205 4,716 5,373 Sales 5,373 Orders 6,531 1.7% 0.2% 0.8% Group profit -690 -4.3% -12.8% Employees 39,000 2001 2002 2003 2004 2005

Sales by business field No. 1 Outsourcing partner in the European media business Solution Business No. 1 IT service provider in the German 25% financial sector 52% Outsourcing 23% No. 1 Solutions provider in discrete Product Related manufacturing in West. Europe Services*

Page 22 * Part of FSC as of April 1, 2006 Siemens Business Services (SBS)

Mobile ticket The ticket system enables users to purchase electronic tickets, pay parking fees and call up boarding passes with their mobile phones at any time.

Page 23 Siemens Business Services (SBS)

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Recent major customer wins april

The Belgian federal government has given Siemens Business Services may the thumbs up for the development of the “e-Premier” application. The order relates to the IT system for the management of the files of the june

Council of Ministers and of the Consultation Committee. This new july innovative solution will form polyvalent support tool and introduce an efficient management system based on a reduction of the use of the aug paper format. E-Premier will be operational by the autumn of 2007. sept The core of the system consists of a database, designed with Oracle tools. This database will contain all files (“dossiers”) that have been oct discussed by the Council of Ministers and of the Consultation nov Committee since September 1, 1989. dec Page 24 Siemens Business Services (SBS)

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april Innovation at work may ƒ In future Siemens Business Services will operate and install ready-to- use VoIP systems for travel companies. This way up to 20 percent of june the operating costs can be saved. july ƒ Checking in with your , selecting your seat and then using your fingerprint to board the plane: the new solution from aug Siemens Business Services makes the conventional magnetic-strip sept boarding card superfluous and provides faster boarding and improved security for passengers. The passenger’s finger is the key to the oct solution. A fingerprint is registered once with an airline or at the airport, nov and the resulting biometric data is then stored in a database. dec Page 25 Automation and Drives (A&D)

ƒ Total industry coverage Siemens is the only company offering a complete product and systems portfolio for automation in all industrial sectors.

ƒ Broad product range Siemens A&D provides 24/7 online access to its entire portfolio of roughly 137,000 different products.

ƒ Innovation leader With Totally Integrated Automation (TIA), an integrated and flexible product portfolio, Siemens A&D increases the productivity of its customers via all levers.

Page 26 Automation and Drives (A&D)

Sales (in millions of euros) (in millions of euros) FY 2005 Group profit margin Target: 11-13% 12.2% 12.3% Sales 9,844 11.0% 9.6% 8.4% Orders 10,190

8,947 8,635 8,375 8,829 9,844 Group profit 1,210

Employees 60,800 2001 2002 2003 2004 2005

Sales growth rates No. 1 Factory automation World- 12.6 wide 11.0 in % 6.5 5.4 6.0 No. 1 Motion control 1.6

A&D -3.0 No. 2 Electrical equipment for World market -3.5 -6.1 -5.4 buildings 2001 2002 2003 2004 2005

Page 27 Automation and Drives (A&D)

RFID Siemens is the leading provider of radio frequency identification systems. RFID, which is revolutionizing supply chain management, offers far more possibilities than conventional bar code solutions.

Page 28 Automation and Drives (A&D)

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Recent major customer wins may june ƒ The fourth tunnel underneath the Elbe River in Hamburg, Germany, is equipped with Sivacon 690 volt low-voltage switchgear. This not july only helped to enhance planning and operation reliability, but also aug shortened planning and maintenance times. sept ƒ Rotoflex International of Ontario, Canada, uses drive-based Simotion D motion control system with Sinamics drives to control its label die oct cutting machines more precisely than before. Standardized, open nov function modules considerably accelerate the engineering processes. dec Page 29 Automation and Drives (A&D)

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may Innovation at work june ƒ Siemens has developed two telecontrol systems based on high-speed, low-cost GPRS (General Packet Radio Services) data transmission. They july are suitable for diverse wireless applications: from mining, water treatment, aug pipelines and traffic control systems, through "intelligent" advertising screens, right up to ticket machines and ATMs. sept ƒ With Easy Application Top Loading, Siemens presented a standardized oct software library for handling robots in packaging processes for the first nov time at the Fachpack trade show. dec Page 30 Industrial Solutions and Services (I&S)

ƒ Industrial plants & services Siemens (I&S) is the world's leading engineering and plant-building company for the iron and steel industry as well as for the flat-product-rolling sector of the aluminum industry. ƒ Water technologies With its broad array of technologies, Siemens is the largest water and waste water treatment systems and services company in the U.S. ƒ Intelligent traffic systems Mobility is a basic human need, improves the quality of life, and is a precondition for economic growth and social development. As the leading vendor world-wide, Siemens Intelligent Traffic Systems (ITS) help maintain mobility and secure the future.

Page 31 Industrial Solutions and Services (I&S)

Sales (in millions of euros) (in millions of euros) FY 2005 Group profit margin Target: 4-6% 5,390 4,563 4,480 Sales 5,390 4,012 4,290 2.6% 2.1% 2.2% Orders 5,686

-1.0% Group profit 139

-4.4% Employees 31,700 2001 20022003 2004 2005

Sales by region No. 1 Metal technologies Others 4%

28% Germany No. 1 Water technologies Americas 28%

10% 30% No. 1 Intelligent traffic systems Asia-Pacific Europe (excl. Germany)

Page 32 Industrial Solutions and Services (I&S)

Satellite-based toll The Siemens satellite-based toll system in the Seattle area is the first system of its kind to combine real-time vehicle positioning with time- and road-specific cost calculations.

Page 33 Industrial Solutions and Services (I&S)

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april Recent major customer wins may ƒ Siemens cleans wastewater containing carbon particles at oil sand june treatment plant in Canada. In the "Long Lake Project", a Zimpro Wet Air Oxidation system is being used to remove the carbon particles resulting july

from synthetic gas production and thus reduce the cost of waste aug disposal at dumping sites. The order is worth around 47 million euros. sept

ƒ Siemens is supplying a baggage handling system for the new North oct

terminal of Detroit's airport. The order is valued at 15 million euros and nov the baggage handling system is scheduled to start operating in 2008. dec Page 34 Industrial Solutions and Services (I&S)

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Innovation at work march ƒ The Italian steel company Acciaieria Arvedi S.p.A. (Cremona) and Siemens are april working together to build the world's first Arvedi ESP (Endless Strip Production) plant, which will manufacture steel strips from liquid steel in a continuous may production process. june ƒ Siemens Airports has developed a new automation system called the "Airfield Lightning Control System" (ALCS) specially for small airports. The system has a july modular design, requires very little planning, engineering and installation work and can be put into operation by the airport's technical personnel themselves. aug

ƒ The CMS visualization software from Siemens, which records, monitors, sept diagnoses and archives process data in water treatment plants, has been comprehensively expanded. With the new version 3.0, visualization is now oct possible at several PCs. Depending on the configuration, up to 32 measuring instruments and process devices can be connected. The system can be used nov for swimming pool equipment as well as for drinking water purification. dec Page 35 Siemens Building Technologies (SBT)

ƒ Security systems Siemens is the third largest provider of security solutions worldwide.

ƒ Fire safety and security products Every fourth commercial building in Europe is equipped with Siemens fire-safety products.

ƒ Building automation Siemens installed a building management system with 26,000 data points linked by fiber optic cables in the world’s most luxurious hotel, the Burj al Arab, in Dubai.

Page 36 Siemens Building Technologies (SBT)

Sales (in millions of euros) (in millions of euros) FY 2005 Group profit margin Target: 7-9% 5,518 5,619 Sales 4,415 4,990 4,247 4,415 4.1% Orders 4,518 3.5% 2.5% 2.4% 2.0% Group profit 181

Employees 28,458 2001 2002 2003 2004 2005

Sales by region No. 1 Fire safety Asia-Pacific 5%

No. 2 Building automation Americas 33% 40% Europe (excl. Germany)

No. 3 Security solutions 22% Germany

Page 37 Siemens Building Technologies (SBT)

Sinteso smoke detection systems Sinteso smoke detectors with advanced signal analysis (ASA) technology, provide building occupants with peace of mind by minimizing the risk of false alarms.

Page 38 Siemens Building Technologies (SBT)

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Recent major customer wins june

july ƒ SBT modernizes the entire district heating of the Romanian city Constanta on the Black Sea. Improved controls of 129 aug

substations reduce energy losses significantly. sept

ƒ Guangzhou International Business Incubator – a science park oct

in the city of Guangzhou, China - is equipped with an nov integrated building automation and security system of SBT. dec Page 39 Siemens Building Technologies (SBT)

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Innovation at work july aug The LMV5 burner management system bundles a set of functions essential in thermal treatment of industrial sept exhaust gases. Thus cabling cost and required space will oct be reduced, error search and malfunction diagnosis will be easier and service time will be reduced respectively. nov dec Page 40 Power Generation (PG)

ƒ Power generation Siemens and its joint venture companies offer customers all key power generation technologies, including instrumentation and controls. Siemens power plants generate one-fifth of the world’s electric power capacity.

ƒ Industrial applications Siemens is a major supplier of rotating equipment for industrial applications, especially in the oil and gas industry.

Page 41 Power Generation (PG)

Sales (in millions of euros) (in millions of euros) FY 2005 Group profit margin Target: 10-13% 16.7% 16.8% Sales 8,061 12.8% 11.8% Orders 10,964 8,563 9,446 7,527 8,061 6,967 Group profit 951 7.4% Employees 33,500 2001 2002 2003 2004 2005

Sales by region No. 1 Industrial steam turbines Asia-Pacific

16% No. 2 Fossil-fuel power plants Africa/ 38% Europe Middle East 21%

No. 2 Instrumentation & controls 25% Americas

Page 42 Power Generation (PG)

High-performance power plants The Mainz-Wiesbaden power plant in Germany is one of the most efficient combined cycle power plants in the world. Siemens has further optimized the plant’s advanced gas turbine technology to minimize emissions and boost reliability, flexibility and profitability for the customer.

Page 43 Power Generation (PG)

2006 jan

Recent major customer wins feb

Siemens Power Generation books service orders march Siemens Power Generation has booked service orders with utilities across the United States including NRG, CPS Energy and Minnkota Power. The scope of april service will include rotor replacements, turbine and turbine-generator upgrades and blade replacements. The orders total in excess of USD 90 million. may Siemens to modernize power plant I&C for Komati in South Africa june Siemens Power Generation (PG) is to modernize the Komati coal-fired power plant in Johannesburg, South Africa with SPPA-T3000, the world’s most july advanced I&C system. The power plant will thus be fitted out with the latest state- of-the-art equipment and its service life extended by a further 15 years. The order aug volume is approximately EUR 45 million. sept Siemens to build a high-efficiency combined cycle power plant in Irsching Siemens PG is constructing the turnkey 800-MW-combined cycle power plant oct “Irsching 5” in Irsching, Bavaria. Purchaser is Gemeinschaftskraftwerk Irsching GmbH. Shareholders are E.ON Kraftwerke GmbH (60%), N-ERGIE AG (25%) nov and Mainova AG (15%). The order volume is approximately EUR450 million. dec Page 44 Power Generation (PG)

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Innovation at work march Siemens PG and EnBW plan first ever megawatt-class fuel-cell power plant april EnBW Energie Baden-Württemberg AG and Siemens Power Generation (PG) are may joining forces to build a highly-efficient fuel cell hybrid power plant. Plans call for the construction of a megawatt-class demonstration plant. The goal of this research june project is to convert up to 70 percent of the fuel energy into electricity. The necessary july groundwork is scheduled to be completed by 2008. This will provide the basis for construction of an initial, small pilot plant, to be followed beginning in 2012 by the aug planned fuel cell hybrid plant with an installed capacity of one megawatt. sept Siemens acquires AG Kühnle, Kopp & Kausch With the acquisition of AG Kühnle, Kopp & Kausch Siemens extends its product oct portfolio with small industrial steam turbines and compressors. The company recorded sales of around EUR 270 million in 2005 with a workforce of approximately nov 1,400. The take-over is subject to the approval of the anti-trust authorities. dec Page 45 Power Transmission and Distribution (PTD)

ƒ Transmission and distribution Siemens is the world’s second largest solutions provider to power utilities and industrial customers, offering reliable, safe and economical transport and distribution of electricity from the power plant to the consumer.

ƒ Energy management Siemens is a leading supplier of energy management systems for the control and economical handling of power transmission and distribution.

Page 46 Power Transmission and Distribution (PTD)

Sales (in millions of euros) (in millions of euros) FY 2005 Group profit margin Target: 5-7% 6.6% 6.1% Sales 4,250 5.0% Orders 5,283 4,199 4,250 4,053 3,611 3,399 Group profit 212 2.4% 2.6% Employees 25,850 2001 2002 2003 2004 2005

Sales by region No. 1 Energy automation Others 12% Europe Germany (excl. Germany) No. 2 High-/medium-voltage 12% 33%

17% Americas No. 2 Transformers 26% Asia-Pacific

Page 47 Power Transmission and Distribution (PTD)

Innovative power transmission Siemens built the power electronics and equipment for high-voltage direct- current transmission between Tasmania and the Australian mainland. Electricity generated in hydro power plants in Tasmania can be delivered to load centers in Victoria. In return, the island can replenish its base load through electricity imports from the mainland in dry periods.

Page 48 Power Transmission and Distribution (PTD)

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may Recent major customer wins june Siemens Power Transmission and Distribution (PTD) is delivering a july turnkey 400-kV/132-kV substation with gas-insulated switchgear to Dubai. The substation will link the power plant “H Station at Al- aug

Aweer” to the country’s power supply network. The substation also sept completes the Emirates National Grid (ENG) by providing a link between the power plant and the power supply system of Abu oct

Dhabi. The order, which has a value of about 83 million euros, was nov placed by the Dubai Electricity and Water Authority (DEWA). dec Page 49 Power Transmission and Distribution (PTD)

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april Innovation at work may Siemens Power Transmission and Distribution (PTD) has been awarded an order by the Powergrid Corporation of India (PGCIL), New Delhi, to june increase the capacity of the “East-South” long-distance high-voltage DC july transmission (HVDC) link in India. To increase the capacity of the East- South link, the Siemens experts have developed a solution not usually aug used for HVDC systems. With the aid of a system known as Relative sept Aging Indication and Load Factor Limitation (RAI&LFL), it will be possible to utilize the overload capacity of the system more effectively without the oct need to install additional thyristors connected in series or in parallel to nov increase the DC transmission voltage respectively current. dec Page 50 Transportation Systems (TS)

ƒ Mass transit Siemens has equipped every third subway system in Europe with signaling and operations control systems.

ƒ Main line Siemens has built the world’s fastest series train.

ƒ Freight transport Our rail innovation provides a basis for international and regional rail freight traffic, supplementing and providing an alternative to truck transport.

Page 51 Transportation Systems (TS)

Sales (in millions of euros) (in millions of euros) FY 2005 Group profit margin Target: 5-7% 5.7% 6.0% 4.6% Sales 4,190 4,190 1.1% Orders 4,599 4,021 4,367 4,697 4,310 Group profit 45

-10.1% Employees 18,000 20012002 2003 2004 2005

Sales by region

No. 1 Rail automation Europe 44% (excl. Germany)

Americas 6% No. 1 Turnkey systems 17% 31% Asia-Pacific Germany

Page 52 Transportation Systems (TS)

VELARO E is one of the first high-speed multiple-unit trains in Europe. The Velaro concept includes the seamless integration of European train control and communications systems. Built for a top speed of 350 km/h, it is the world’s fastest passenger train providing passengers with top-class comfort and high-tech facilities.

Page 53 Transportation Systems (TS)

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june Recent major customer wins july Siemens Transportation Systems (TS) is to install the latest control and safety equipment for driverless operation on Line 4 of the aug Budapest metro, which is currently under construction. This will sept make the new route the first fully automated metro line in Hungary. Fully automated train operation will enable a maximum speed of 80 oct km/h and headways of 90 seconds. Inauguration of the new line is nov planned for May 2010. The order is worth about 109 million euros. dec Page 54 Transportation Systems (TS)

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Innovation at work june

Siemens has developed a special range of uses for its ES64U2 two- july system locomotive. In its version as Bosphorus-Sprinter, Siemens Transportation Systems is currently in the process of equipping and aug certifying the ES64U2 in all relevant southeast European countries sept for a service range extending as far as Turkey. The equipment of the Bosphorus Sprinter offers, for example, the possibility of selecting oct the requested language between Germany and Turkey for displays nov or for acoustic announcements. dec Page 55 Siemens VDO Automotive (SV)

ƒ Global presence Every second car in the world has Siemens technology inside.

ƒ Top customer base All top ten car producers in the world rely on Siemens.

ƒ Innovation leader Siemens is a first mover in driver assistance, fuel-saving technologies and telematics.

Page 56 Siemens VDO Automotive (SV)

Sales (in millions of euros) (in millions of euros) FY 2005 Group profit margin Target: 5-6% 9,610 8,515 8,375 9,001 Sales 9,610 6.6% 5,702 6.2% 5.0% Orders 9,787 0.8% Group profit 630

-4.6% Employees 50,800 2001 20022003 2004 2005

No. 1 Safety electronics Leveraging growth potential Cost structure for passenger cars No. 1 Instrument clusters Source: 0,7% McKinsey/VDA €11,000 €12,000 No. 1 Fuel supply systems CAGR Percentage of electrics / 6.2% No. 1 Body electronics 20% 40% electronics 2002 2015 No. 1 Emissions management Automotive electronics generates 50% of SV sales.

Page 57 Siemens VDO Automotive (SV)

Brake easy with brake-by-wire At the 61st IAA Motor Show in Frankfurt, Siemens VDO Automotive exhibited future braking technology with the electronic wedge brake, which will enable the launch of brake-by-wire series production for the 12-volt vehicle electrical system within this decade. The modern wedge brake offers considerable safety and comfort advantages over hydraulic brakes.

Page 58 Siemens VDO Automotive (SV)

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Recent major customer wins june

ƒ Fast growing Chinese automotive market. july

ƒ Local manufacturers (OEM’s) are gaining additional aug market shares faster than international OEM’s. sept

ƒ Valid opportunities for SV: in the second quarter oct FY 2006 40 percent of the new orders in China were placed by local OEM´s. nov dec Page 59 Siemens VDO Automotive (SV)

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march Innovation at work april Siemens VDO unveils truck navigation may Difficult maneuvering in dead-end streets and exhausting U-turns when june confronted with bridges that are too low will soon be things of the past july for truck drivers. Siemens VDO is meeting the needs of commercial vehicles by presenting true truck navigation at the IAA Commercial aug Vehicles 2006 show in Hanover, Germany. The operating software has sept been adapted so that recommended routes take into account not only vehicle-specific attributes such as height and weight, but also the oct driving characteristics of large trucks. The Siemens VDO truck nov navigation system is due to go into series production in 2007. dec Page 60 Medical Solutions (Med)

The world’s first integrated diagnostic company that combines in-vivo diagnostics and in-vitro diagnostics with healthcare IT

ƒ In-vivo diagnostics (imaging systems) Example: The Somatom Definition is the world’s first dual source CT system. Using two Straton X-ray sources and detectors, it is faster than the beating heart and is the most precise CT on the market today. ƒ Healthcare IT Soarian is the world’s most extensive software platform for coordinating independent hospital processes – linking clinical, financial, diagnostic and administrative procedures for patient- centered care. ƒ In-vitro diagnostics (laboratory systems) By acquiring DPC* and Bayer Diagnostics* Siemens established a global No.2 position in immunodiagnostics.

Page 61 *Subject to customary regulatory approvals and the completion of standard closing conditions Medical Solutions (Med)

Sales (in millions of euros) (in millions of euros) FY 2005 Group profit margin Target: 11-13% 15.1% 14.8% Sales 7,626 13.4% 12.8% 11.2% Orders 8,641 7,219 7,623 7,422 7,072 7,626 Group profit 976

Employees 33,000 2001 20022003 2004 2005

Technology trendsetter No. 1 Healthcare IT FY 05

FY 98 Examples No. 1 Hearing aids + 9% + 11% + 9% * Angiography, points fluoroscopic, points points No.1 or No. 2 in all imaging systems radiographic systems Market share AX* CT MR Page 62 Medical Solutions (Med)

Somatom Definition – faster than every beating heart

The new Somatom Definition computed tomography scanner is the world’s first dual source system. It uses two Straton X-ray sources and two detectors, therefore being faster than any existing technology. With heart scans, for example, doctors no longer need to administer beta blockers to lower patient’s heart rates. Although the CT has two X-ray tubes, it cuts radiation exposure in half compared with traditional CT scans. In addition, the CT opens new fields in diagnostic oncology such as the differentiation and characterization of tissue samples including tumors.

Page 63 Medical Solutions (Med)

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march Recent major customer wins april ƒ The Yonsei Severance Hospital in Seoul, Korea, picked Magnetom Tim Trio and Avanto for its future generation MRI. Full-body scanning, ultra high-resolution may images for in-depth study, faster scanning time and interventional application were some of the major requirements. Yonsei Severance Hospital and YoungDong june Severance Hospital, where Tim Trio and Magnetom Avanto will be installed, are july both under the Severance Foundation which was established in 1885. For the last 120 years, it has been in the leading position in introducing the modern medical aug science into Korea and is one of the top 3 medical institutions in Korea. sept ƒ The radprax MVZ GmbH in Wuppertal (Germany) is the world’s first private medical institution offering its patients the most advanced technology in computed oct tomography: the Dual Source CT Somatom Definition. According to the radprax, it’s one of the goals of the institution to provide always the most modern nov technology for a better diagnosis and care. dec Page 64 Medical Solutions (Med)

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april Innovation at work may Looking into the patient’s heart Med is now offering the medical community an even smaller, powerful tool to june visualize the entire heart during diagnostic and therapeutic procedures – the new july Acuson AcuNav 8F ultrasound catheter. The new catheter, sized at eight French, is 33 percent smaller in the cross sectional area than the existing AcuNav 10F aug catheter and enables improved access in all patients, particularly smaller patients for left heart applications in electrophysiology and interventional cardiology. The sept new catheter was recently introduced to the European market. According to oct clinical evaluators of the AcuNav 8F catheter, the smaller size coupled with the same high resolution and depth of imaging as the existing AcuNav 10F catheter nov is a significant improvement and allows access to a wider range of patients. dec Page 65 Lighting (Osram)

ƒ General lighting Osram shines in households, commercial and public buildings in more than 140 countries.

ƒ Automotive lighting Our product range includes lamps and LEDs for cars, trucks, motorcycles and bikes.

ƒ Display / Optics Osram’s special purpose lamps are setting new standards in cinema, video and data projection. Our state-of-the-art XBO projector lamp has even been awarded an Oscar.

Page 66 Lighting (Osram)

Sales (in millions of euros) (in millions of euros) FY 2005 Group profit margin Target: 10-11% 10.5% 10.8% 10.2% 9.8% Sales 4,300 8.4% Orders 4,300 4,522 4,363 4,172 4,240 4,300 Group profit 465

Employees 38,000 2001 20022003 2004 2005

No. 1 Automotive lighting Sales by division Display/Optic 4% No. 2 General lighting Opto Semiconductors* 11% General Ballasts and 50% No. 2 Opto semiconductors Lighting 11% Luminaires 7% Precision Materials & Components No. 3 Display / Optics 17% Automotive Lighting

Page 67 * LED business of all divisions: see Opto Semiconductors Lighting (Osram)

Ostar LED This miniature light source emits virtually all the light it produces. Due to its brightness and low profile, the LED is suitable for use in cigarette-pack- sized beamers.

Page 68 Lighting (Osram)

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Recent major customer wins april

The new Terminal of Hamburg Airport appears in a light-flooded ambience created may by specialists from WILA Lichttechnik and OSRAM made a decisive contribution to the creation of the light-flooded ambience. They realized the concept developed by june the famous lighting planner Peter Andres, using project-specific luminaires july equipped with innovative lamps, such as the HCI POWERBALL metal halide lamp, and corresponding POWERTRONIC electronic control gear. A total of 4,000 aug custom luminaires was installed with OSRAM metal halide lamps. Thus was created one of the most modern lighting installations in Europe in Hamburg sept Airport‘s Terminal 1. The particularly uniform illumination of the entire roof oct structure offers an incomparable visual experience. This effect is generated by 464 hemispherical spotlights, characterized by extremely wide-angle reflectors made of nov highly reflective material and extremely translucent cover glass. dec Page 69 Lighting (Osram)

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april Innovation at work may The new T5 HO Constant produces in excess of 90 per cent of its maximum luminous flux in ambient lamp temperatures of between +5 °C and +70 °C. june Compared to conventional T5 lamps generating over 90 per cent of their july maximum luminous flux in temperatures ranging from 25 °C to 50 °C, its area of application thus increases by almost three times. Due to these properties, aug the T5 HO Constant is suitable both for indoor and outdoor use. It generates a high luminous flux in high temperatures such as develop in slim luminaires, sept as well as in low temperatures to which it may be exposed when used for oct outdoor lighting. Consequently, the lamp presents new design options for the development of small, cost-effective luminaires and for the first time enables nov the use of the innovative T5 technology in outdoor lighting. dec Page 70 Siemens Financial Services (SFS)

Our business ƒ Providing financial services for Siemens as well as third party customers. ƒ Financing sales and major projects in infrastructure. ƒ Managing financial and insurance risks as well as pension funds. Proven track record ƒ Leasing & receivables financing: Total assets: €10 billion ƒ Equity participations: Total assets: €297 million ƒ Project finance: 600 projects worldwide, total volume €55 billion ƒ Treasury: 10 million transactions per year, €47 billion managed assets ƒ Pensions & Investments: €18.1 billion assets under management ƒ Insurance: brokered premium volume €446 million

Page 71 Siemens Financial Services (SFS)

Total Assets (in billions of euros) (in millions of euros) FY 2005 Group‘s Return on Equity (RoE b.t.) 32.4% Target: 18-22% Total assets 10,148 10.1 9.3 9.1 8.7 8.4 New leasing volume p.a. 2,961 24.9% 24.6% 18.1%6.9% 23.2% IBIT 319 Employees 1,672 2001 20022003 2004 2005

SFS Product Portfolio Employees by region

Provides „ Asset Finance & Leasing Other regions 50 interest and „ Receivables Financing dividend „ Asset-Based Lending income „ Equity & Project Participation Other Germany 670 719 „ Project & Export Financing European countries „ Investment Management Provides „ Industrial Insurance Solutions fee income „ Private Finance Solutions 233 „ Treasury & Financing Services North America Page 72 As of September 30, 2005 Siemens Financial Services (SFS)

More than a bank ƒ We build strong relationships with our customers in B2B markets. ƒ The combination of financial expertise and industry know-how enables us to create value through tailored financial solutions.

Page 73 Siemens Financial Services (SFS)

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april Recent major customer wins may ƒ SFS’s project and export financing arranged 100% of the long-term financing for the Russian state railway project contract totaling EUR 50 million with june Calyon Bank. It succeeded in obtaining this coverage without additional collateral. Financing for the EUR 270 million supply contract is currently being july prepared (TS project). aug ƒ Siemens Finance and Leasing Ltd. China successfully closed a vendor partnership in May 2006 with Dynapac - one of the leading suppliers of road sept construction equipment based in Sweden. The financing program offers oct flexible leasing services and is designed for Dynapac customers across China. Dynapac can thereby offer an attractive and complete package solution to their nov customers in China which helps to enhance their competitive edge. dec Page 74 Siemens Financial Services (SFS)

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may Innovation at work june INFORA GmbH has worked in conjunction with Siemens Finance july & Leasing GmbH /SF&L) to compile equipment-leasing guidelines for government customers. Their brochure describes the broad aug legal bidding framework covering the award of equipment-leasing sept contracts and shows government officials how they can use this financing form. A focal point of the brochure is IT procurement oct and financing, including related services. The guidelines are nov available free of charge from Siemens Financing & Leasing. dec Page 75 Siemens Real Estate (SRE)

ƒ Siemens Real Estate (SRE) SRE ensures the market-oriented provision as well as the professional and profit-oriented development and commercialization of buildings and land.

(in millions of euros) FY 2005 Total sales 1,621 Income before taxes 144

Employees 2,000

Page 76 Bosch und Siemens Hausgeräte (BSH)

ƒ Part of people’s everyday life Bosch and Siemens jointly develop and produce high-quality home appliances, covering the entire spectrum of cooking, cooling, home laundry, dishwashing, and networked home appliances.

ƒ Leading position With sales of more than €6 billion, BSH is the number one home appliance manufacturer in Western Europe, the number two supplier in China, and the number three worldwide.

Page 77 Fujitsu Siemens Computers (FSC)

ƒ Broad portfolio With a portfolio of exceptional depth, FSC’s offerings extend from hand-held- devices through desktop computers to enterprise-class IT infrastructure solutions.

ƒ Leading IT company With sales of roughly €6 billion, FSC is the leading European IT provider with a strategic focus on next-generation mobility and business-critical computing products, services and solutions.

Page 78 Siemens One: Combining the power of Siemens

A&D Com SBS TS SV

I&S Siemens One Bringing the Siemens portfolio together Med for comprehensive solutions SBT and increased customer value

Osram SRE PG PTD SFS

Page 79 Siemens One: Better understanding of customers’ needs

Airports Oil & Gas Telematics Healthcare Water

Pharma Siemens One Sector know-how is the basis for effective Finance account management Automotive

... Sport Pulp & Major Food & Venues Paper Events Beverage

Page 80 Siemens One: Part of our value proposition

Customers’ wish-list: Our unique proposition: ƒ Comprehensive solutions ƒ More than 150 years of experience ƒ Reduction of complexity ƒ In more than 190 countries ƒ Competitive advantages ƒ One of the most comprehensive ƒ Reduced cost of ownership technology providers in the industry ƒ Long-term commitment

Page 81 Leading in automotive plant construction

Turnkey Solutions Automation Technology Press Shop Powertrain First Tier Supplier

Logistics Services Body Shop

Paint Shop

Manufacturing Plant Assembly Testing Systems

Manufacturing Communication Process Control Execution Solutions Energy Infrastructure Systems Solution

Building Automation Central Office Power Supply Water/Wastewater

Page 82 Example: BMW in Leipzig

Facts and figures: Siemens´contributions ƒ The BMW Group is one the (Highlights) leading automobile and ƒ Automation and process control solutions motorcycle manufacturers for body shop, paint shop and final concentrating on premium assembly standards and outstanding quality for all its brands ƒ Energy, communication, IT and building infrastructure ƒ Services for the whole factory ƒ High synergy and cost efficiency through standardized hardware and software

Page 83 Leading digital hospital provider

Patient´s Medical IT Systems Office Telemedicine Home Building

Surgical Center

Medical Equipment Mobility

Efficient Building Electronic Patient Files Technology

Fire & Safety Access Control

Communication Solutions New Construction Services Hospital

Page 84 Example – Scott & White Hospital, Texas

Siemens’ contributions (Highlights) ƒ Software solution for all medical imaging tasks ƒ Diagnostic imaging and patient monitoring ƒ Web-based information system ƒ HiPath voice and data networking Facts and figures: ƒ Apogee building technologies ƒ Leader in medical and healthcare ƒ Access power substation education in central Texas ƒ 350,000 patients with some 1.4 million physician office visits per year

Page 85 Leading partner for airports

Control Tower Airfield Lighting Runway

Baggage Handling Systems

Building Automation Control Room Terminal

IT & Communication, Cargo Passenger Information Energy Facilities Command Center

Safety and Security Hangar

Transportation and Telematics Energy Parking Guidance Infrastructure

Physical Plant

Page 86 Example – Bangkok International Airport

Facts and figures: Siemens’ contributions ƒ Regional aviation hub (Highlights) ƒ 76 flights per hour ƒ Airport management database ƒ 45 million passengers ƒ Power distribution per year ƒ Cargo handling system ƒ Hydrant network control system ƒ Rail link with Bangkok city center

Page 87 Leading partner for Telematic solutions

Tunnel Fleet Management Interurban Traffic

Home Highway/Toll Cities

Command Center Production Airport

Parking

Retail Sea/Rail

Passenger Rail

Page 88 Example : Green light for London´s Buses

Facts and figures: Siemens´contributions ƒ one of the largest and most (Highlights) comprehensive urban transport ƒ tracking and monitoring London’s 8,000 systems in the world buses ƒ used by 6.3 million people on ƒ satellite-based Automatic Vehicle Location ƒ over 700 different routes every & Control system weekday ƒ maintenance of IT infrastructure ƒ traffic light priorization systems ƒ up to date information trough real-time data ƒ for more accurate predicted arrival time at 2,000 bus shelters around the city.

Page 89 Leading partner for Hospitality solutions

Guest Facilities ƒ Smart Room Platform ƒ Hospitality Entertainment Platform Conference Center ƒ Multi Media Conferencing ƒ Home & Kitchen Control ƒ Phone Suite ƒ Internet Access Solutions

Back Office

ƒ HiPath Hospitality Service Center ƒ Building Automation & Climate Control ƒ Safety & Security Infrastructure ƒ Total Integrated IP Infrastructure ƒ Power Supply ƒ Communication & IT ƒ Lighting ƒ WLAN Solution

Page 90 Example: Total Integrated Power for Mövenpick Frankfurt

Siemens´contribution (Highlights) ƒ Switchgear and control gear ƒ e-distributions ƒ Switches ƒ Building Automation ƒ Fire alarm system Facts and figures: ƒ video equipment 55 hotels and 13,274 rooms in 20 ƒ access control system countries, it serves over 5 million guests per year. Mövenpick Hotels & Resorts ƒ parking lot management employs more than 10,000 employees with a geographic focus on the European ƒ Siemens Groups involved: metropolitan centres, the Middle East and SBT, A&D, I&S and PTD Africa.

Page 91 Leading partner for Semiconductor Technology

Water Treatment Systems Automation Solutions

Central Unit Building (CUB)

Safety & Security Energy Supply Center (CHP) Central Office IT & Communication Solutions Energy Manufacturing Plant Management

Building Automation

Document Management

Page 92 Example: AMD facility Dresden

Facts and Figures: Siemens´contributions ƒ AMD is a leading global provider of (Highlights) innovative microprocessor solutions ƒ Heating, Ventilation, Air Condition (HVAC) ƒ Fab for 300 mm wafer for future ƒ Gases, Chemicals and Water equipped generation microprocessors with PCS 7 / S7 (Process Control System ƒ 2.5 billion euro investments 7 / S7) ƒ 14,500-square-meter cleanroom area ƒ Low Voltage Power Distribution ƒ Busways, Motors, VS-Drives (Variable Speed) ƒ IT solutions ƒ Power Monitoring ƒ Local presence ƒ Extensive technical expertise

Page 93 The world is our home

Page 94 Russia – High reputation, good prospects Highlights

ƒ High-speed trains for the Moscow-St. Petersburg route and, later from Moscow to other big cities. ƒ System for Third Circle highway in Moscow. ƒ Solutions for airports in Moscow: Domodedovo, Sheremetjevo. ƒ Diagnostic equipment for clinics in cities and rural regions in a framework of Government Health Program “Zdorovye”. ƒ Remote power plant control Mutnovo geothermal power plant satellite-controlled from Moscow. Regional Companies Representative Offices ƒ Commercial broadband wireless WayMAX solution. Branch offices Group Companies / JVs / Capital investments

Overview 2005

Sales (in millions of euros) 1,157 Employees 4,000 Regional Offices 30

Page 95 China – Strong base in a dynamic environment

Overview 2005

Sales (in millions of euros) 3,200 Employees 31,000 Regional Offices 51

Regional Office Companies 45 Company Training Center

Contributions to China’s ƒ Waigaoqiao power plant ƒ GSM networks in 26 provinces throughout China

Page 96 U.S. – Broad presence in the toughest market

Overview 2005

Sales (millions of dollars) 18,800 Employees 70,000 R&D (millions of dollars) 900

Only major locations Global Business HQs 11 Sales & service Engineering / R&D Locations 800 Top manufacturing locations Manufacturing / assembly

Siemens is improving the infrastructure ƒ 90% of U.S. mail is processed by our postal automation systems ƒ Our technologies are used in 40% of the automobiles manufactured in the U.S. ƒ More than 100 major U.S. airports use our baggage handling systems

Page 97 Corporate Responsibility at its best

Corporate Governance

Business Practices

Sustainability

Corporate Citizenship ƒ Generation21 (education program) ƒ Caring Hands (charity program) ƒ Support for the arts and sciences

Page 98 Finally …

… it’s all about people!

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