1. Schutzvermerk / Copyright-Vermerk Business Development in South Eastern Europe The strategies and learnings of Siemens in CEE Maximilian Mairhofer Siemens AG Austria Business Development in South Eastern Europe The strategies and learnings of Siemens in CEE Maximilian Mairhofer Siemens AG Austria

2. Page 2 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE 61 mio. Consumers 61 mio. Consumers 524 bill. EUR GDP (4,3% growth rate) 524 bill. EUR GDP (4,3% growth rate) 33 bill. EUR Siemens-market (5,6% growth rate) 33 bill. EUR Siemens-market (5,6% growth rate) 8.996 mio. EUR order intake 8.996 mio. EUR order intake 7.516 mio. EUR sales (thereof 58% export) 7.516 mio. EUR sales (thereof 58% export) 30.254 employees Siemens in Central and Eastern Europe Source: Central Bureau of Statistics, Year 2006

3. Page 3 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE Attractive Markets and Favorable Business Environments to compete in 1 Critical Success Factors in Business Development 11 2 Vision and Strategy 3 1 Leaders and Employees to realize 4 Innovative Products, Solutions and Services to succeed with

4. Page 4 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE Attractive Markets and Favorable Business Environment Investment and Growth need outside Stimulation Investment Climate Stable political and legal conditions Liberalized markets and privatization as drivers for investment Openness towards Foreign Investment Technology Demand for modern technology Secure Energy Supply and Resources Legislation and Funding Short project decisions and approval processes Stable conditions for long-term investments (taxation, tariffs etc.) 1

5. Page 5 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE Attractive Markets and Favorable Business Environments to compete in 1 Critical Success Factors in Business Development 11 Vision and Strategy 3 1 Leaders and Employees to realize 4 Innovative Products, Solutions and Services to succeed with 2

6. Page 6 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE Innovative Products, Solutions and Services to succeed DivisionsSector Energy Industry Healthcare Industry Automation Motion Control Building Technologies Osram Industry Solutions Mobility Fossil Power Generation Renewable Energy Oil & Gas Service Rotating Equipment Power Transmission Power Distribution Imaging & IT Workflow & Solutions Diagnostics 2

7. Page 7 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE Attractive Markets and Favorable Business Environments to compete in 1 Critical Success Factors in Business Development 11 2 Vision and Strategy 1 Leaders and Employees to realize 4 Innovative Products, Solutions and Services to succeed with 3

8. Page 8 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE Region CEE Romania 2002 Bulgaria 2004 Slovakia Croatia Slovenia 1994 Bosnia & Herzegovina 1996 The Vision: Development from Siemens AG Austria into a crossnational network – Siemens CEE Serbia (incl. Montenegro) 1999 Total Investment of Siemens AG Austria in CEE: > 73 million Total Business Volume booked since 1995: > 77 billion 3

9. Page 9 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE First step: establish a local set-up Added Value of a regional company SIS TS I&S A&D............. SIS TS I&S A&D............. PROJ 2 PROJ 1 Cross-Group Projects Bundling of Group Portfolio & Sector Approach Local Services and Solution Business Value Add in Cooperation with local Companies Marketing and Sales Sales of Products and Solutions + Sales Channel Management 1 2 3 3

10. Page 10 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE Development of the local market Step 1: Large infrastructure projects as entry point to local presence Step 2: Build-up of sales, project management, technical and service resources Step 3: Commitment to local presence via R&D- and production-facilities Step 4: Investment in exogeneous growth Subotica Podgorica Pristina Belgrad Nis 3

11. Page 11 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE Development of the Country-Organisation through further investments Step 1: Large infrastructure projects as entry point to local presence Step 2: Build-up of sales, project management, technical and service resources Step 3: Commitment to local presence via R&D- and production-facilities Step 4: Investment in exogeneous growth Regional Company Branch Office Software-Development Production 579 employees 56 in SW-development 334 in production 189 in sales Subotica Belgrad Nis Pristina Podgorica 3

12. Page 12 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE An Example: Public Lighting A Success Story in Business Development Modernisation, Reconstruction, Maintenance, Operation and Energy Management Combination of technical and financial engineering Savings potentials of up to 60% - modernisation paid out of existing budgets Contracts ranging from 8 to 20 years Close cooperation with local companies Digital monitoring in local dispatching centers Bratislava Brno Most Zlin Teplice Sliven Sibiu Neusiedl 3

13. Page 13 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE Healthcare: hospitals, medical technology, optimization of non-clinical processes Energy: transeuropean networks, power generation, (renewable energies) and energy efficiency Environment: waste management, water treatment and air pollution control Transportation: transeuropean transport networks, airports and strategies for urban mass transit Public investment priorities for the region CEE Public Administration: border control, tax collection, land register, IT and telecommunication infrastructure 3

14. Page 14 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE Vladimir Voronin, President of Moldova and Professor Mirchea Sofroni, Head of Moldavian Ontological Institute in front of the Siemens CT delivered to Moldova via IAEA (International Atomic Energy Agency) Siemens in Moldova Highlights Rehabilitation of Moldavian Regional Public Hospitals and Establishing of the New Private Medical Centers Complete Multi-Step Modernisation of the Lighting System for the International Aiport CHISINAU New Orders (in million EUR) 1,5 Sales (in million EUR) 0,6 Employees5 Overview 2007 Siemens s.r.l., Moldova

15. Page 15 February 2007 Vienna Economic Forum Meeting Chisinau Maximilian Mairhofer, Siemens CEE Attractive Markets and Favorable Business Environments to compete in 1 Critical Success Factors in Business Development 11 2 Vision and Strategy 3 1 Leaders and Employees to realize Innovative Products, Solutions and Services to succeed with 4

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