1. The Siemens Compliance System Only clean business is Siemens business
Belgrade, May 29, 2014
The Siemens Compliance System Only clean business is Siemens business

2. The Siemens Compliance System
The Company

3. Siemens has been in business for 165 years
I won't sell the future
for short-term profit.
Werner von Siemens
Innovative
Excellent
Responsible

4. Key figures Revenue by Sector Revenue by Region Revenue and employees
Healthcare
and Cities
Asia, Australia
Germany
20%
14%
18%
23%
Europe, C.I.S.,
Africa,
Middle East
(excl. Germany)
35%
24%
28%
38%
Americas
Energy
Industry
Based on customer location
Revenue and employees
Continuing operations – comparison with previous year
Revenue in millions of €
Employees in thousands
100,000
500
In millions of €
FY 2012
FY 2013
New orders
75,939
82,351
Revenue
77,395
75,882
Income
4,642
4,212
Free cash flow
4,727
5,257
Employees
366,000
362,000
80,000
400
60,000
300
40,000
200
20,000
100 FY
1986
1990
1995
2000
2005
2013
As reported in annual reports

5. A strong local partner for customers In more than 200 countries
Germany
118,000 70
10.8
14%
24%
Americas
20.9
Europe, C.I.S., Africa, Middle East (excl. Germany)
78,000 77
Asia, Australia 74
28%
27%
29.1
64,000
15.1
102,000 68
17%
20%
20%
25%
26%
28%
37%
38%
24%
24%
Employees
Revenue (billions of €)
Major production facilities
As of September 30, 2013; All numbers refer to continuing operations 5 5

6. The Siemens Compliance System
The Past

7. The disaster struck – November 2006 headlines
Possible scenarios
Debarment from public tenders
Penalties up to €10 billion
Long-term damage to reputation and business
Break-up of the company

8. Rapid reaction and implementation of our Compliance System, plus further development
Immediate actions
Implementation
Support sustainable business
2006
2007
2008
2009
Exchange of Leadership Team
Tone from the top
Independent investigation
Centralization of bank accounts
Settlement with authorities in Germany and in the U.S.
Compliance program
Compliance organization
Compliance training
Compliance tools
Settlement with World Bank
Continuous improvement
Values & integrity
Collective Action
Active development of Compliance System/ external recognition
2010
2011
2012
2013
First funding round Integrity Initiative
End of monitorship (Dec. 15, 2012)
Dow Jones Sustainability Index: highest rating in the category Compliance for third time in a row
Second funding round Integrity Initiative

9. The Siemens Compliance System: Prevent – Detect – Respond
Management responsibility
Compliance risk management
Policies and procedures
Training and communication
Advice and support
Integration in personnel processes
Collective Action
Whistle blowing channels “Tell us” and Ombudsman
Compliance controls
Monitoring and Compliance reviews
Compliance audits
Compliance investigations
Consequences for misconduct
Remediation
Global case tracking

10. The Siemens Compliance System
Siemens Today

11. “Tone from the top” as important internal and external message
“The culture of a company and its values make the difference. People rightly associate Siemens with reliability, fairness and integrity.” Joe Kaeser, President and CEO of Siemens AG

12. Our Compliance System – Management responsibility is the focus
We continuously develop the Compliance System further in order to adapt it to changing requirements according to our global business.
Effective preventive measures such as risk management, policies & procedures, training & communication enable systematic misconduct to be avoided
Prevent
Management responsibility
Respond
Detect
Explicit consequences and clear reactions support the prevention of misconduct, for example to punish wrongdoing and to eliminate deficiencies
Effective Compliance work requires complete clarification: whistle-blowing channels “Tell us” and Ombudsman, as well as professional and fair investigations

13. Compliance is one of the four main categories of the Internal Control System
Risk and Internal Control
Risk identification highlights gaps in internal controls
and influences the identification of necessary control
requirements as well as their monitoring.
Enterprise Risk Management
(ERM)
Internal Control System
(ICS)
Monitoring of control requirements may result
in the identification of unmitigated risks.
The Policy & Control Masterbook (PCMB) comprises in total ~750 Siemens global control requirements
and forms the basis for the Siemens “In Control” Statement.
Quarterly
C orporate Circulars
Categories
Strategic
CL CO* is governance
owner of 44 control
requirements
thereof
- 25 CCF**
- 19 other sources,
e.g. CL CO circulars
SOA 404 Annex 4
Operations
Sources
ICS Self Assessment
Catalogue
Financial
ICS Task Force Output
Compliance
Others
Update

14. We need to continue fostering an integrity culture9%
We need to continue fostering an integrity culture
Questions to guide Siemens employees towards compliant and responsible behavior 1
Is it the right thing for Siemens?
Is it consistent with Siemens core values and mine? 2 3
Is it legal?
Is it something I am willing to be held accountable for? 4
If the answer is YES to all of those questions, DON'T WORRY, BE CONFIDENT

15. “The tone from the top" has to be lived
Middle Management needs to
Anchor compliance in the entire value chain
Promote Siemens' compliance tools
Full commitment towards Compliance and Clean Business
Explain and demonstrate compliance-related issues
Motivate and encourage employees
Engage in regular communication with employees
Show priority of compliance at all times
"walk the talk"

16. Compliance Helpdesk consists of five parts
"Ask Us"
Partly available
"Tell Us"
“Find It"
Do you have any questions about compliance? You can ask them at any time via the Compliance HelpDesk “Ask Us.”
Use “Find It” to search for compliance related information, such as FAQs, policies & guidelines or training material.
HelpDesk “Tell Us” function provides global, round-the-clock facilities for making statements on compliance-related breaches.
Compliance Helpdesk &
Monitoring
“Approve It"
“Improve It"
“Approve It” is the platform for approval requests regarding gifts and hospitality
With “Improve It” you can help to improve the Compliance program by adding your ideas and suggestions.

17. Siemens provides employees with training in line with their roles and responsibility
Type of Training
Target Group
Training in Global Bribery and Global Competition awareness
Anti-Corruption Basic & Refresher Training
Antitrust Risk Assessment & Measures
Training on Compliance Tools 1)
Compliance Officer Trainings
Senior Management 2)
“Sensitive Functions” 3)
Business/regional specific groups (e.g. sales, project management, procurement, etc.)
All entities based on their risk class
Compliance Organization
In-person
trainings
Anti-Corruption
Global Competition (Antitrust)
Business Conduct Guidelines
Your Signature –
Your Responsibility
Employees with signing authority
Web-based
trainings

18. The Siemens Compliance Organization – clear roles & responsibilities
Direkte Anbindung an den CEO
Direct connection to the CEO
Roles of Compliance Officers
Rollen des Compliance Officers
President and CEO
Joe Kaeser
General Counsel
Situation *
Andreas C. Hoffmann
Chief Compliance Officer
Klaus Moosmayer
Tasks
Continuous communication about the importance of Compliance for Siemens
Bundling of company-wide expertise for avoidance of corruption and other violations of fair competition, and regarding data privacy
Governance for investigations and disciplinary response
Company-wide Compliance organization in Headquarters, Sectors and Regions
* Direct reporting line to Board of Management and Supervisory Board re compliance risks and measures.

19. Compliance in global business – tasks and challenges
Employees
Business Partners
Environment
Dissemination of knowledge about regulations and processes
Attitude and values lived out in practice
Role and role-model function of executives are decisive factors
Integrity dialog
Business partners as intermediaries to customers
Examples: sales agents, system integrators, custom agents
Risk-based Compliance due diligence of all business partners
High risk of corruption in many countries where Siemens does business
Countries with high annual growth also affected
Collective Action

20. Our employees – in dialog on Compliance with their line manager
Integrity dialog in team meetings
Objectives
to maintain awareness of Compliance
to provide a practical demonstration of management responsibility
Managers discuss Compliance-related topics with their teams
Contents: Risk-based selection of topics with central and local relevance
Supported by Compliance Officer
Global rollout during Fiscal Year 2013
Repeated on annual basis

21. Business partner-related Compliance risks – uniform risk-assessment of all relationships
The Compliance
Due Diligence process for Business Partners
All business partners with an intermediary function between Siemens and the customer must undergo a risk assessment (uniform across the company and supported by a tool).
Based on certain risk indicators – such as, for example, the risk of corruption in the country of deployment – a risk class (higher, medium or lower risk) is defined for the business relationship, which subsequently determines further procedure (Due Diligence, requirement for approval and mandatory contract clauses).
Around 13,000 business partners are classified by using this process.

22. 1%
Collective Action calls for high Compliance standards which benefit all market participants
Fight corruption in concert with competitors and other players
Create high compliance standards via a concept of prevention
Integrate an independent institution for promotion and monitoring
Define sanctions in case of violations
Customers
Governments
Collective Action
NGOs 1)
Society
Competitors
1) Non-Governmental Organizations such as Transparency International

23. We must remain vigilant…
L‘Etat de São Paulo poursuit Siemens en justice
Bloomberg.com
Siemens Agrees to Pay $10 Million to Settle New York Fraud Case
Spiegel Online Versuchte Bestechung in Kuwait: Siemens deckt neue Korruption auf
As at: January 2014

24. …and determinedly pursue any cases that arise…
Stipulated standards
The presumption of innocence applies, employee rights are safeguarded
Works Council co-determination rights are protected
Data protection is observed

25. … and continue with the constant development of the Compliance System
Compliance has top priority
Compliance System to support sustainable growth and create a competitive advantage
Risk-based further development of the Compliance System, in order to maintain high standards
High rating and recognition of our Compliance System in the annual assessments for the Dow Jones Sustainability Index: top rating in the Compliance category for the 3rd time in succession
Compliance priorities for Fiscal 2014
Stand for Integrity
Committed to Business
Managing Risk & Assurance
Responsibility for Data Privacy

26. Metrics and further Information
The Siemens Compliance System
Metrics and further Information

27. Compliance metrics*
* Source: Siemens Annual Report 2013

28. Further information Business Conduct Guidelines Compliance Homepage
Compliance System Brochure
Siemens Integrity Initiative
Annual Report 2013

29. Siemens doo Beograd Marko Petrovic (LCO) Siemens d.o.o. Beograd
Siemens d.o.o. Beograd
Compliance (LC)
Omladinskih brigada 21
11070 Beograd, Srbija
Tel:
Mob: