1. © Siemens AG 2011. All rights reserved MIT Manufacturing Summit US Manufacturing impressions from a Global conglomerate Cambridge, October 2011

2. Page 2 © Siemens AG 2011. All rights reserved Innovation has been making Siemens strong for over 160 years Outstanding innovation and sales development of Siemens AG, since 1847 First pointer telegraph World's first pacemaker from Siemens Digital EWSD telephone exchange W. v. Siemens develops Dynamo Magnetom "Synapse 1" "Eurosprinter" First Simatic ICE3 Sensor "Fingertip" Electric train First Siemens radio receiver First traffic light ISDN "HICOM" First GSM mobile phone with color display First 256 Mbit chip 1847 1879 '80 1924 1926 1958 1959 1974 '03 1866 1973 '81'82'84…'92 Start of production of highly integrated LSI circuits 64 kbit storage A company like Siemens can only be lastingly successful with technologically superior products. We must constantly produce innovations that give us an advantage over the competition. Heinrich von Pierer, shareholders' meeting Jan 23, 2003 « » Sales, in logarithmic scale Overview of Siemens origin & growth

3. Page 3 © Siemens AG 2011. All rights reserved Siemens has 4 Sectors, with 60,000 employees and $25 Billion in revenue in the US during FY10 Siemens Sector & Division setup, with employees & revenue (USD) for FY!0 Industry Osram Medium & Low Voltage Industry Automation Drive Technologies Customer Services Energy Power Transmission Fossil Power Generation Renewable Energy Oil & Gas Infrastructure & Cities Building TechnologiesImaging & IT Workflow & Solutions Diagnostics Healthcare Smart Grid Mobility Key FY10 information Global Employees: 405,000 US Employees: 60,000 Global Revenue: $104 Billion US Revenue:$25 Billion Overview of Siemens businesses & size

4. Page 4 © Siemens AG 2011. All rights reserved Current challenges for Siemens in the US  Identifying candidates & hiring for open positions  Remaining cost competitive  Ensuring continued innovations in both products & mfg processes A review of Siemens Mfg landscape, shows opportunities & challenges exist in the US US manufacturing overview  ~3,000 open positions in US  Majority are manufacturing related  Average potential salary ~$89,000  Refocus on US manufacturing  Exchange rates helping to maintain competitive US costs / investments  Perception that intellectual property needs to be preserved in US & EU United States  Nearly 100 manufacturing sites across US  All four Sectors & all of the divisions have US manufacturing facilities  Locations in all 50 states  Sites originate from both investment & acquisition  Limited return to US once off-shoring occurs Germany  Majority of manufacturing capacity with continually heavy investments in automation  Off-shoring generally for non-critical components Rest of World, mainly emerging markets  Traditional focus on low-cost, low-value mfg  Recent shift to local-for-local & local-for-global Current opportunities for Siemens in the US Siemens Manufacturing Overview US mfg overview & comparison

5. Page 5 © Siemens AG 2011. All rights reserved Examples of global mfg strategies, resulting in an expansion of US-based mfg value-add Global manufacturing strategies followed a process to obtain results  Identify required core competencies  Generally based on market differentiators  Can include considerations for IP & trade secrets  Evaluate existing capabilities & future demand  Determine location & workforce to deliver core competencies  Develop a detailed business case:  Rationale for changes  Financial analysis (NPV, cashflow, P&L impact)  Project timeline  Risk assessment & mitigations Energy Sector  Workshop footprint strategy Energy Impacts  Opened a new site in the US  Based on a manufacturing innovation  Enhanced product portfolio, while reducing costs Industry Sector  EBIT improvement & manufacturing best practices Industry Impacts  Shifted high value-add work to US for customized products  Increased focus on high margin customized solutions  Low skill & high-run-rate work remained in Mexico facility Results Process & evaluationManufacturing strategies Mfg project examples that I led

6. Page 6 © Siemens AG 2011. All rights reserved  Diagnosis of a disorder (e.g. infection, cancer, …)  Localization of disease (e.g. stenosis, tumor, …)  Reveal multi-morbidities  Genetic pre-disposition  Patient metabolism / immune reactions  Molecular specificities of the disease  Stratification for treatment  Assessment of similar cases  Structured outcome analysis  Decision support systems  Standards of Care Imaging, DiagnosticsMolecular applicationsHealthcare IT Siemens’ Healthcare portfolio designed to enhance patient outcomes from diagnosis to treatment Understand the patient‘s disease Understand the patient‘s biology Leverage state-of-the-art databases Siemens Healthcare portfolio overview Current area of responsibility

7. Page 7 © Siemens AG 2011. All rights reserved  Increasing demand for healthcare services  Diverse & scattered customer base  Growing & aging population  Emerging rural healthcare  High growth in emerging markets Market trendsNeed for improved healthcare Trends in Healthcare require improvements in innovation & manufacturing  Cost pressure (e.g. Deficit Reduction Act)  Financing problems  New structure of competitors  Disease orientation  Healthcare IT  Innovations needed to drive customer & Siemens cost reductions  Improved processes & workflows  New applications & clinical pathways  Flexible and customer-specific IT solutions Healthcare market trends with needed responses and statement from Eric Spiegel Trends in my area focus on innovation & manufacturing

8. Page 8 © Siemens AG 2011. All rights reserved Closing statement – invest in education & training “The old jobs are not coming back. We need to invest in education and training to get people prepared to fill these high-skilled, high-wage jobs of the future” – Eric Spiegel, president & CEO of Siemens Corp (NAFTA) Closing statement as said by CEO of NA