1. s ICT and Innovation  Key for the Success 29-10-2003Uwe Gregorius 1|12

2. s 29-10-2003 Our motto: Global network of innovation Uwe Gregorius 2|12  Nb. 2 in sales among the world’s leading electronics and electrical equipment companies  400.000 employees  75 % of total sales earned from products developed in the last five years  5 to 6 billion US$ invested in R&D worldwide annually www.siemens.com/research

3. s 29-10-2003Uwe Gregorius 3|12 1847 Electric pointer telegraph – predecessor of modern communications 1853 Siemens Russia established; the first step toward becoming global player 1858 Siemens UK established 1849 Formation of the Health and Life Insurance Fund for Engineering Workers in Berlin 1872 Pension fund for employee widows and orphans 1866 invention of the dynamo lays the foundations for electrical engineering 1870 Completing of the transcontinental telegraph line between London and Calcutta 1873 Early environmental measure: Werner von Siemens proposes installing spark arresters in smoke stacks to cut ash emissions 1877 Regulations governing recognition of inventors achievements 1879 First electric railroad 1881 First telephone exchange 1890 Werner von Siemens retires from business. By this time,more than 2,000 of the company’s 4,500 employees were working outside the German empire 1892 Werner von Siemens proposes a method for sterilizing drinking water 1892 Poststrasse power plant in Hamburg becomes the first to supply steam for district heating 1897 Siemens reorganize as a stock corporation (Siemens UK done in 1881) 1904 Siemens China established 1906 World’s first vacuum cleaner 1922 Siemens India established 1919 Osram GmbH KG established 1891 introduction of the 8.5 hour working day – at that time revolutionary 1893 Siemens begins training apprentices in business adminsitration 1905 Metal filament light bulb 1908 Siemens Argentina established 1923 Workforce grows to more than 100,000 1923 Siemens Japan stablished Our corporate history founded on innovation

4. s 29-10-2003Uwe Gregorius 4|12 First traffic light in Germany 1959 Simatic First electronic automation system for industry 1930 E 44 multipurpose locomotive 1943-44 Siemensstadt in Berlin sustains heavy damage. Siemens losts 80% of its total assests during World War II 1954 initial steps in computing 1939 Electron microscope 1935 Appointment of first company safe engineers and medical officers 1953 high purity silicon 1971 Executive guidelines on business conduct 1958 first cardiac pacemaker 1965 Diagnostic real-time ultrasonic scanner 1980 digital switching system EWSD 1975 world’s first scanner capable of delivering instant images 1985 ICE achieves speed of 300 kmh 1988 ISDN 1971 Siemens sets up first corporate office for environmental affairs 1987 start of regular audits to ensure compliance with statutory and company environmental regulations 2003 fuel cell factory in Pittsburg, USA;solid oxide fuel technology reaches the marketplace 1991 formation of corporate office for product-related environmental protection 2001 world record for data transmission on optical fiber 2000 Piezoelectronic valves for automobiles 1995 Siemens first Environmental Report 2000 First ccorporate citiuens report 2001 Business conduct guideliness 2002 First combined PET/CT scanner 2002 Transrapid’s maiden trip in Shangai 1925 Siemens Turkey established Milestones in our company history

5. s 29-10-2003Uwe Gregorius 5|12 1st Cycle 1793 1847 18931939 1989 2040 Steam engine Railway Steel Electricity Chemistry Automobiles, Electronics Knowledge Ecology Virtualization 2nd Cycle3 rd Cycle 4 th Cycle 5 th Cycle we are here  Innovating means the speed with which new products reach marketplace  Products accelerated market penetration  Innovation cycles: shorter and faster than ever before  More than 3/4 of sales revenues with products less than 5 years old Global competition asks for - Innovation and Speed

6. s 29-10-2003Uwe Gregorius 6|12 Innovation leads to leadership  Biggest software company in the world  7,100 inventions and 4,600 patents in 2002  Latest ICT developed and implemented in all operating Groups

7. s 29-10-2003Uwe Gregorius 7|12 Another innovative approach To assist new business at various business stages: In seed phase:  Siemens Technology Accelerator www.sta.siemens.com  Siemens Technology-To-Business Center www.ttb.siemens.com  Siemens Mobile Accelerator (Smac) www.smac.siemens.com Following seed phase:  Siemens Venture Capital (SVC) www.siemensventurecapital.com

8. s 29-10-2003  Networking of knowledge using ICT  Networking of innovation using ICT  Siemens global competence network on intranet  R&D increases performance and capabilities of ICT  Mobiles exceeded fixed lines  Internet boom-exponential growth  Major challenge: to communicate with anyone, anywhere and anytime Uwe Gregorius 8|12 ICT rockets innovation with networking

9. s 29-10-2003Uwe Gregorius 9|12 GENERAL TRENDS

10. s 29-10-2003Uwe Gregorius 10|12 Why is ICT important for our economic lives?  Innovation depends on free and easy accesible flows of information and knowledge  ICT made world without limit: time and space  High R&D intensity go together with higher producitivity  Productivity growth implies enchanced competitiveness

11. s 29-10-2003Uwe Gregorius 11|12 KEY MESSAGES  World is in continuos change, we have to be part of that change  Only way to differientiate ourselves is innovation  Exploit up-to-date ICT  Innovation gives us competitive advantage  Our success in Croatia is a proof that ICT & innovations are the key factors for the success  We contribute to the national economy

12. s 29-10-2003Uwe Gregorius 12|12 Thank you very much for your attention!