How to Execute a Strategic Project - Top 10

Safe Harbour Statement This document contains forward-looking statements and information that is, statements related to future, not past, events. These statements may be identified by words such as expects, looks forward to, anticipates, intends, plans, believes, seeks, estimates, will, project or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens control, affect our operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from changes in general economic and business conditions (including margin developments in major business areas); the challenges of integrating major acquisitions and implementing joint ventures and other significant portfolio measures; changes in currency exchange rates and interest rates; introduction of competing products or technologies by other companies; lack of acceptance of new products or services by customers targeted by Siemens; changes in business strategy; the outcome of pending investigations and legal proceedings, especially the corruption investigation we are currently subject to in Germany, the United States and elsewhere; the potential impact of such investigations and proceedings on our ongoing business including our relationships with governments and other customers; the potential impact of such matters on our financial statements; as well as various other factors. More detailed information about certain of these factors is contained throughout this report and in our other filings with the SEC, which are available on the Siemens website, www.siemens.com, and on the SEC's website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forwardlooking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated. EBITDA (adjusted), Return on capital employed, Free cash flow, Cash conversion and Net debt are Non-GAAP financial measures. A reconciliation of these amounts to the most directly comparable IFRS financial measures is available on our Investor Relations website under www.siemens.com/ir, Financial Publications, Quarterly Reports. 'Group profit from operations' is reconciled to 'Income before income taxes' of Operations under 'Reconciliation to financial statements' in the table 'Segment Information'. Page 2 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Executing our Strategic Agenda Our Principles Key takeaways Execution of TAP agenda on track Increase TRANSPARENCY Enforce ACCOUNTABILITY Drive PERFORMANCE Project issues under control Full visibility on EPC problems at Energy (Fossil Power Generation): Fixes in place, transparency on change in business mix No additional material findings at Industry (Mobility) with nearly 75% of projects volume reviewed SG&A cost savings of 10% backed by bottom-up analysis; 20-30% margin effect relative to growth Page 3 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Second Quarter 2008 Financial Highlights Very strong organic order growth 1) of 15% across all regions, with a book-to-bill of 1.3x 2% organic sales growth, but orders will drive 2x GDP growth for the year Strongest organic growth at PTD (+13%), A&D (+11%), and Osram (+6%) Growth rates at PG, TS and SIS affected by revised estimates of project completion ( 250m negative effect on revenues) Healthcare organic sales growth of 2% negatively impacted by slower market growth Regional strength in Asia and the Americas, with USA +7% organic No slowdown for market leader A&D Double digit organic order and revenue growth across all regions, with a pre-ppa/otc margin 2) of 17.5% Group Profit from Operations of 1,203m with very good underlying margins Strong earnings conversion especially at A&D, PTD, and Med Income from Continuing Operations of 565m Corporate Items affected by increased expenses for compliance investigations and costs related to Siemens transformation programs Management review of project businesses: PG completed, TS investigation nearly 75% through 857m total charges in Q2 1) All percentage growth figures are y-o-y on a comparable basis excluding currency translation and portfolio effects 2) PPA = purchase price allocation, OTC = one-time costs, both related to the acquisitions of UGS and Flender Page 4 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Order growth in Q2 confirms strong position in attractive markets Regional order growth 1) Continued strong order growth 2 x GDP (regional) Africa/NME/GUS 54% Germany 21% Asia / Pacific Americas Rest of Europe Order growth per group 1) A&D I&S SBT Osram TS PG PTD Med 10% 6% 19% 14% 12% 2% 6% 19% 29% 23% 1% 2 x GDP (global) Russia: +119% China: +23% USA: +8% 1) Q2 2008 y-o-y on a comparable basis excluding currency translation and portfolio effects Source GDP 08 Forecast: Global Insight China and Germany main growth drivers Continuing organic growth in USA despite economic slowdown Industry: Particular strength at A&D and I&S Energy: Strong order intake at PG and PTD capitalizing on strong global energy demand Page 5 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Major customer wins across all sectors Energy 130 Wind Turbines for two wind farms in Washington State Largest ever order (~ 300m) for Medium Voltage from China Light & Power Two combined cycle units in Portugal for a value of ~ 600m incl. service contract Healthcare Building and operation of a particle therapy center at University Clinic Schleswig- Holstein (within an industry consortium, total order volume ~ 250m incl. financing) Klinikum Großhadern, a hospital unit of Munich University, installed three of our most advanced imaging technologies in MRI, CT and Angiography Multi-year agreement with Cleveland Clinic on enterprise-wide cardiology PACS Industry Mobility: Largest US light rail contract to date in Denver ArcelorMittal chose Siemens Industry to modernize the automation equipment at its Vanderbijlpark plant Volkswagen and Audi selected Siemens PLM for worldwide vehicle development Page 6 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Key value drivers show strong earnings conversion A&D Med PTD +310 bp +100 bp 14.4% 14.2% 17.5% 16.7% 15.3% 13.4% 16.3% 12.5% 8.1% +350 bp 11.6% Q2 2007 PPA - 10m Q2 2008 PPA - 35m OTC - 2m Q2 2007 Q2 2008 PPA - 37m OTC - 9m PPA - 50m OTC - 52m Q2 2007 Q2 2008 Margin improvement driven by economies of scale as a result of high capacity utilization Increasing underlying profitability despite challenges in market conditions Favorable product mix and economies of scale associated with higher revenue As reported Adjusted for PPA, one time costs (OTC) Page 7 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

PG project review completed no additional material impact Volume 1) ( bn) 12.6 (100%) 80% Project Review completed Single cycle Projects close to completion 'Core business' combined cycle Full turnkey Most critical projects Steam power and nuclear power plants Critical consortia partner High risk countries 39 Status March 17 # of projects Total charges of 559m; negative margin impact in coming quarters expected 62 Main actions taken Rigorous Limits of Authority process Selective intake of new turnkey contracts Dedicated partner management Risk transfer to partners and customers Centralization of project management Recruiting, fast integration and training of project management resources Modularization and standardization Renegotiation of selected contracts Expediting with critical suppliers 1) Review of projects in backlog and warranty phase, scope of 12.6 bn, of which Backlog Turnkey business 5.9 billion Page 8 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Business mix will drive higher Fossil PG margins Backlog in Fossil Turning turnkey backlog into sales 22.5 bn 08/03/31 Backlog in bn 5.9 6.6 1,5 2,2 1,8 New orders in 07-08 more profitable than older projects 71% Products & Service 29% Turnkey 4Q 07 Turned into revenue New order intake 3,0 1,3 2Q 08 2H 08 2009 2010 0,5 >2010 Challenges from Olkiluoto - project <50% completed Order intake in Fossil Business mix will change 4.2 bn Q2 2008 Order intake (%) Turnkey 100% 100% 100% 39% 34% 33% Fossil PG Margin of 7-9% in 2009 70% Products & Service 30% Turnkey Products & Service 61% 2007 66% 2010E 67% Long term target Fossil's 2010 target of 11-15% confirmed Page 9 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

TS projects with limited additional charges so far Status of project review Main actions taken Backlog 1) ( bn) 14.0 10.6 (73%) Remaining Projects Strengthening of Limits of Authority process Proactive contract management Increased investments in development of platforms, e.g. Desiro Mainline 0.8 Most critical projects Combino Transrapid 22 Status March 17 314 408 Status end of April # of projects Combining activities in new Rolling Stock business unit Productivity program to realign organization and adjust cost structure Charges of 209m after review of nearly 75% of volume 1) All projects > 2.5m as of March 31, 2008 Page 10 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Reporting dates November 2007 Supervisory Board December 2007 January 2008 AGM April 2008 Q2 analyst conference July 2008 Q3 conference call October 2008 October 2009 October 2010 Milestones (deliverables) New organization approved Managing Board incl. Sector CEO approved Sector CFO named Division CEO and CFO named New target margins for Energy and Industry Sector Target margins for Divisions Update on SG&A project Start pro forma reporting in new structure Outline new management compensation scheme Guidance on EPS range for 2009 New management compensation scheme in place Streamlining Other Operations completed Share buyback completed Capital structure target achieved SG&A project completed Target margins achieved SG&A target translated into 1.2 bn cost reduction plan Main drivers SG&A cost reduction Eliminating duplicate functions on all levels by new accountability principles Reducing number of legal entities and reporting units Cutting overhead by new Sector setup and Regional clusters bn, as reported 1) Sales & Marketing 11.9-10% 12.1 10.9 ~8.9 8.4 Target breakdown -6% Driving cost efficiency through streamlined go-to-market G&A FY 06 ~3.2 FY 07 2.5 FY 10-22% 1) Continuing operations (i.e., without Siemens VDO) Page 11 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Accountability of business leaders for SG&A reduction Breakdown of reported SG&A costs, FY 2007, bn 2.0 1.7 0.7 1.0 12.1 6.0 1.7 1.4 0.3 1.7 0.3 8.9 5.1 0.7 0.9 3.2 Corporate Sales cost G&A cost Industry Energy Healthcare Cross-sector businesses and others Total SG&A Page 12 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Key G&A improvement areas and levers Reported G&A cost, bn Baseline FY 2007 3.2 Key improvement areas Leverage new sector organization Leverage new regional cluster organization Operate with clear accountability Ensure effective corporate governance Capture synergies of scale by appropriate pooling Ensure operational excellence Consolidation of headquarter central functions from 8 Groups into 3 Sectors (e.g., in accounting, controlling, communication) Bundling of infrastructure from ~ 70 regional companies into 20 regional clusters to exploit cost synergies (e.g., in accounting, controlling, IT) No institutionalized 2nd opinion Reduction of profit center structures from 900 to 500 No corporate-driven performance controlling for regions Reduction of consultant support Streamlining Corporate headquarters to governance activities resulting in cost reduction Reduction of number of corporate programs and initiatives by > 50% Reduction in number of legal entities from 1,800 to < 1,000 Centralizing of auditing Bundling of shared services to double Siemens-internal service coverage Consolidation of real-estate management into a single entity Target FY 2010 2.5 Reduction by 22% Optimize fragmented and oversized IT services by infrastructure standardization and application consolidation Introduction of rolling forecast replacing bottom-up planning Page 13 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Levers for sales cost reduction and efficiency gains Reported sales cost, bn Key improvement areas FY 2007 Optimization of infrastructure Optimization of back office Front end FY 2010 8.4 8.9 Efficiency increase Growth related increase Reduction by 6% Bundling of infrastructure in Clusters Integration of legal entities Streamlining of sales mgt. structures Discontinuation of major IT projects Bundling of shared services to double service coverage Centralization of sales back office (e.g. offer preparation, technical consulting, ) in 20 Clusters (instead of 70 countries) or across Clusters Interface optimization between HQ-Regions, no duplicate functions Reduction of HQ back office functions Removal of cross-divisional coordination functions in vertical markets Sales efficiency: Standardization of planning, logistics, pricing, CRM processes across Clusters and selected Divisions Focused market approach (selection of market segments) Leverage e-business Go-to-market / sales channels: Redefining sales representation in smaller countries Restructuring of sales offices Stronger orientation towards verticals like automotive, F&B Leverage channel management with partners Joint wholesale approach Leverage cross-divisional sales Page 14 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

SG&A reduction targets are clearly defined SG&A target costs, FY 2010, bn 2.1 1.5 0.7 0.8 10.9 5.0 1.7 1.5 0.2 1.9 0.2 8.4 4.3 0.6 0.6 0.7 2.5 Corporate Sales cost G&A cost Industry Energy Healthcare Cross-sector businesses and others Total SG&A Page 15 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Cutting and growing SG&A reduction (absolute) SG&A reduction with growth at 2x GDP SG&A in EUR billions, as reported 1) -10% 12,1 10,9 SG&A in terms of sales (%) 2) GDP growth = 2% p.a. 16,7% 16,7% -20% -24% 13,4% 12,6% GDP growth = 3% p.a. GDP growth = 4% p.a. 16,7% -28% 11,9% 2007 2010 2007 2010 Margin effect is substantially larger than the 10% face value suggests 1) Continuing operations (i.e., without Siemens VDO) 2) Sales 2007 72.4 bn (Continuing Operations) Page 16 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Execution roadmap for SG&A program Milestones January / February 2008 March 2008 Deliverables Official launch: Global G&A Program and Siemens Sales Project Alignment on binding cornerstones of future G&A setup Decision on regional clusters and governance model April 30, 2008 Q2 semiannual analyst/ press conference July 30, 2008 Q3 quarterly analyst/ press conference call November 13, 2008 Q4 annual analyst/ press conference Starting in 2009: Q1 Q4 October 2010 Overview on program goals and approach Presentation of key improvement areas and levers Update on key improvement areas and levers Update on program progress Presentation of key organizational changes in G&A setup and go-to-market approach including Corporate, Sectors and regional clusters Quarterly updates Global SG&A program completed and targets achieved Page 17 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Reporting dates November 2007 Supervisory Board December 2007 January 2008 AGM April 2008 Q2 analyst conference July 2008 Q3 conference call October 2008 October 2009 October 2010 Milestones (deliverables) New organization approved Managing Board incl. Sector CEO approved Sector CFO named Division CEO and CFO named New target margins for Energy and Industry Sector Target margins for Divisions Update on SG&A project Start pro forma reporting in new structure Outline new management compensation scheme Guidance on EPS range for 2009 New management compensation scheme in place Streamlining Other Operations completed Share buyback completed Capital structure target achieved SG&A project completed Target margins achieved Ahead of schedule to exit Other Operations by 2009 Other Operations FY 07 revenues of 2.9 bn Breakdown of OOP Target Scenarios Implementation Status OOP Business Activities 187 Business Activities Primarily outside Germany Revenue: ~ 2.3 bn Profit Margin: ~ -5% Employees: ~ 8,900 Exit via ramp-down 3% 2.3 bn 13 % Implementation status (by revenue) Under evaluation 85% 0.6bn 2.3bn Implementation status (by activities) OOP Business Activities Shared Services and Central Issues Transfer into Sectors 12% Revenue 66 % solved to be solved All Values: Actual FY 2007 Page 18 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Reporting dates November 2007 Supervisory Board December 2007 January 2008 AGM April 2008 Q2 analyst conference July 2008 Q3 conference call October 2008 October 2009 October 2010 Milestones (deliverables) New organization approved Managing Board incl. Sector CEO approved Sector CFO named Division CEO and CFO named New target margins for Energy and Industry Sector Target margins for Divisions Update on SG&A project Start pro forma reporting in new structure Outline new management compensation scheme Guidance on EPS range for 2009 New management compensation scheme in place Streamlining Other Operations completed Share buyback completed Capital structure target achieved SG&A project completed Target margins achieved 2 bn share buyback tranche successfully executed Share price and daily repurchase volume 28 Jan 8 April Number of shares outstanding Volum e 1.000.000 800.000 600.000 400.000 10 0 90 80 70 Share Price ( ) 914.2m 24.9m (2.7% of shares outstanding) 889.3m 200.000 60 0 50 28-Jan-08 5-Feb-08 13-Feb-08 Repurchased Volume 21-Feb-08 29-Feb-08 28-Mar-08 18-Mar-08 10-Mar-08 Gross Repurchased Price 7-Apr-08 01 Jan 08 08 Apr 08 We will provide continuing updates of next steps on share buyback Page 19 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Development of Industrial Net Debt (adjusted) Therein: Pension deficit +1.0 bn OPEB +0.8 bn Credit guarantees +0.4 bn Hybrid adj. -1.0 bn SFS adj. -6.7 bn Therein:. Pension deficit 0.0 bn OPEB +0.6 bn Credit guarantees +0.5 bn Hybrid adj. -0.9 bn SFS adj. -7.2 bn 1.0 bn Therein i.e. SV sale 11.4 bn 1.5 bn 2.0 bn 0.5 bn 2.0 bn Net Debt 07/12/31: -5.6 bn -0.3 bn 1.0 bn 6.9 bn -5.8 bn 5.5 bn -11.3 bn 8.9 bn Investments in PPE / Intangible Assets Acquisitions: therein i.e. Dade Behring -4.4 bn 1.5 bn 4.6 bn 6.1 bn 11.2 bn 3.9 bn -7.2 bn Therein:. Profit withdrawal SV -5.5 bn Correction of the change in cash D/O +0.7 bn Withdrawal from other non cash effective expenses (i.e. currency) +0.6 bn Interest received +0.4 bn Industrial Net Debt (adj.) 07/09/30 Net Debt 07/09/30 Adjustment Profitability Income Taxes (paid) Dividend (paid) / Interest (paid) Share Buyback Others Net Debt 08/03/31 Asset Management Desinvestments Investments Adjustment Industrial Net Debt (adj.) 08/03/31 Page 20 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Clear improvement in CAPEX ratios and NWC turns Net Working Capital turns CAPEX ratios NWC 1) Turns Total Groups (Operating Business) Capex/ X 100% Depreciation 10 150% 144% 9.4 140% 9 8.8 9.2 8.3 130% 127% 131% 8.0 122% 8 8.0 120% 115% 115% 7.4 7.4 7.2 110% 109% 7 106% Target 110% 109% Range 6.9 100% 6.5 98% 6 As reported 90% 95% PPE+Intangibles/ 93% Comparable, 90% D&A excl. SV PPE/Depreciation 0 0% Q1 Q2 Q1 Q2 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 1) NWC = Net Working Capital of Operating Groups, including Inventory, Accounts Receivable, Accounts Payable, Prepayments and Billings in Excess Page 21 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Fit 4 2010 status Q2 2008 Margin (based on Q2 2008 YTD) Cash Conversion Rate (Cont. Op.) A&D I&S SBT Osram TS PG PTD Med SIS SFS -7.0% -2.0% 16.0% 7.0% 7.0% 10.0% 11.0% 13.0% 1.0% 41.0% CCR Target 0.87 1.18 0.31 0.87 0.32 0.86 Q2 2007 YTD Δ Q2 2008 YTD FCF 3) 2.259 bn - 853 m 1.406 bn Profit 4) 1.907 bn - 264 m 1.643 bn CCR Target 0.96 3) Free Cash Flow from Continuing Operations; 2007 affected by factoring-stop (Com) 4) Net Income (Continuing Operations) ROCE (Cont. Op.) Capital Structure (Industrial Net Debt/EBITDA) 14-16% 13.6% 5.0% 8.6% 0.8-1.0 0.88 0.84 0.04 Q2 2007 YTD 2) Δ Q2 2008 YTD Profit 1) 1.930 bn - 271 m 1.659 bn Capital Employed 28.364 bn 10.131 bn 38.495 bn 1) Net Income (Continuing Operations) before interest 2) Q2 2008 comparable to Q2 2007 (SV within Disc. Op.) Q2 2007 YTD Δ Q2 2008 YTD Ind. Net Debt 6.095 bn - 5.798 bn 297 m EBITDA 5) 3.475 bn + 9 m 3.484 bn 5) Capital structure ratio was calculated using annualized EBITDA Page 22 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Consistent Execution against our Plan Reporting dates November 2007 Supervisory Board December 2007 January 2008 AGM April 2008 Q2 analyst conference July 2008 Q3 conference call October 2008 October 2009 October 2010 Milestones (deliverables) New organization approved Managing Board incl. Sector CEO approved Sector CFO named Division CEO and CFO named New target margins for Energy and Industry Sector Target margins for Divisions Update on SG&A project Start pro forma reporting in new structure Outline new management compensation scheme Guidance on EPS range for 2009 New management compensation scheme in place Streamlining Other Operations completed Share buyback completed Capital structure target achieved SG&A project completed Target margins achieved Page 23 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Outlook 2008 Organic revenue growth for the fiscal year will be twice the rate of GDP growth Group Profit from Operations will match prior year s level Income from Continuing Operations will match prior year s level This outlook excludes earnings impacts that may arise from legal and regulatory matters, which are not yet quantifiable, and from measures that may be taken as part of Siemens transformation programs, including SG&A reduction. Within discontinued operations, divestment of the enterprise networking business is expected to result in a substantial loss. Page 24 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Financial Calendar May May 20, 2008 EPG conference Joe Kaeser, CFO June June 2008 Post Q2 roadshows with CEO and CFO in Paris (June 3), New York and Boston (June 9-10), London (June 12), Frankfurt (June 13) June 4, 2008 Deutsche Bank German & Austrian Corporate Conference Joe Kaeser, CFO June 12, 2008 JPMorgan Pan-European CEO Conference Peter Löscher, CEO July June 30 July 1, 2008 Capital Market Days of Sector Energy Munich, Germany July 30, 2008 Q3 Financial report and conference call Page 26 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Reconciliation and Definitions for Non-GAAP Measures (I) Group profit from Operations is reconciled to Income before income taxes of Operations under Reconciliation to financial statements on the table Segment Information. See our Financial Publications at our Investor Relations website under www.siemens.com/ir. Earnings before interest and taxes (EBIT) (adjusted) is Income from continuing operations before income taxes less Financial income (expense), net and Income (loss) from investments accounted for using the equity method, net. Earnings before interest, taxes, depreciation and amortization (EBITDA) (adjusted) is EBIT before Depreciation and Amortization, defined as amortization and impairments of intangible assets depreciation and impairments of property, plant and equipment. Group profit is reconciled to EBIT and EBITDA on the table Segment Information Analysis (II). See our Financial Publications at our Investor Relations website under www.siemens.com/ir. Return on Capital Employed (ROCE) is a measure of how capital invested in the Company or the Group yields competitive returns. For the Company, ROCE is calculated as Net income (before interest) divided by average Capital employed (CE). Net income (before interest) is defined as Net income excluding Other interest income (expense), net and excluding taxes on Other interest income (expense), net. Taxes on Other interest income (expense), net are calculated in simplified form by applying the current tax rate which can be derived from the Consolidated Statements of Income, to Other interest income (expense), net. CE is defined as Total equity plus Long-term debt plus Short-term debt and current maturities of long-term debt minus Cash and cash equivalents. Because Siemens reports discontinued operations, Siemens also calculates ROCE on a continuing operations basis, using Income from continuing operations rather than Net income. For purposes of this calculation, CE is adjusted by the net figure for Assets classified as held for disposal included in discontinued operations less Liabilities associated with assets classified as held for disposal included in discontinued operations. For the Operations Groups, ROCE is calculated as Group profit divided by average Net capital employed (NCE). Group profit for the Operations Groups is principally defined as earnings before financing interest, certain pension costs and income taxes. Group profit excludes various categories of items which are not allocated to the Groups since the Managing Board does not regard such items as indicative of the Groups performance. NCE for the Operations Groups is defined as total assets less tax assets, provisions and non-interest bearing liabilities other than tax liabilities. Average (Net) Capital employed for the fiscal year is calculated as a 'five-point average' obtained by averaging the (Net) Capital employed at the beginning of the first quarter plus the final figures for all four quarters of the fiscal year. For the calculation of the average during for the quarters, see below: Page 27 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Reconciliation and Definitions for Non-GAAP Measures (II) Average calculation for CE*: NCE for Operations Groups Year-to-Date Q1 2 Point average: (CE ending Q4 Prior year + CE ending Q1) / 2 Q2 3 Point average: (CE ending Q4 Prior year + CE ending Q1 + CE ending Q2) / 3 Q3 4 Point average: (CE ending Q4 Prior year + CE ending Q1 + CE ending Q2 + CE ending Q3) / 4 Quarter-to-Date Q1 2 Point average: (CE ending Q4 Prior year + CE ending Q1) / 2 Q2 2 Point average: (CE ending Q1 + CE ending Q2) / 2 Q3 2 Point average: (CE ending Q2 + CE ending Q3) / 2 Q4 2 Point average: (CE ending Q3 + CE ending Q4) / 2 Our cash target is based on the Cash Conversion Rate (CCR), which serves as a target indicator for the Company s or the Group s cash flow. For the Company, CCR is defined as the ratio of Free cash flow to Net income, where Free cash flow equals the Net cash provided by (used in) operating activities less Additions to intangible assets and property, plant and equipment. Because Siemens reports discontinued operations, this measure is also shown on a continuing operations basis, using Income from continuing operations, Net cash provided by (used in) operating activities continuing operations and Additions to intangible assets and property, plant and equipment for continuing operations for the calculation. For the Groups, CCR is defined as Free cash flow divided by Group profit. All values needed for the calculation of ROCE and CCR can be obtained from the Consolidated Financial Statements and Notes to Consolidated Financial Statements. Group profit, Net capital employed and Free cash flow for the Company and the Groups can be found on the table Segment information. Our Consolidated Financial Statements are available on our Investor Relations website under www.siemens.com/ir. Siemens ties a portion of its executive incentive compensation to achieving economic value added (EVA) targets. EVA measures the profitability of a business (using Group profit for the Operating Groups and Income before income taxes for the Financing and Real estate businesses as a base) against the additional cost of capital used to run a business (using NCE for the Operating Groups and risk-adjusted equity for the Financing and Real estate businesses as a base). A positive EVA indicates that a business has earned more than its cost of capital, and is therefore defined as value-creating. A negative EVA indicates that a business is earning less than its cost of capital and is therefore defined as value-destroying. Other organizations that use EVA may define and calculate EVA differently. Page 28 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Reconciliation and Definitions for Non-GAAP Measures (III) Our capital structure target is based on an Adjusted industrial net debt divided by EBITDA (adjusted). For the calculation of Adjusted industrial net debt, we subtract from Net debt (defined as Long-term debt plus Short-term debt and current maturities of long-term debt less Cash and cash equivalents less Available-for-sale financial assets) (1) SFS debt excluding SFS internally purchased receivables and (2) 50% of the nominal amount of our hybrid bond; and add/subtract (3) Funded status of Pension benefits, (4) Funded status of Other post-employment benefits; and add (5) Credit guarantees. The components of Net debt are available on our Consolidated Balance Sheets, SFS debt less internally purchased receivables is available in our Management Discussion & Analysis under Capital Resources and Requirements. The Funded status of our principle pension plans and Other post-employment benefits, the amount of credit guarantees and the nominal amount of our Hybrid bond is available in the Notes to our Consolidated Financial Statements. To measure Siemens achievement of the goal to grow at twice the rate of global GDP, we use GDP on real basis (i.e. excluding inflation and currency translation effects) with data provided by Global Insight Inc. and compare those growth rates with growth rates of our revenue (under IFRS). In accordance with IFRS, our revenue numbers are not adjusted by inflation and currency translation effects. Return on equity (ROE) margin for SFS was calculated as SFS Income before income taxes divided by the allocated equity for SFS. Allocated equity for SFS for the financial year 2007 is 1.041 billion. The allocated equity for SFS is determined and influenced by the respective credit ratings of the rating agencies and by the expected size and quality of its portfolio of leasing and factoring assets and equity investments and is determined annually. This allocation is designed to cover the risks of the underlying business and is in line with common credit risk management standards in banking. The actual risk profile of the SFS portfolio is monitored and controlled monthly and is evaluated against the allocated equity. Group profit from Operations, EBIT (adjusted), EBITDA (adjusted), ROCE, CCR, EVA and Adjusted industrial net debt are or may be Non-GAAP financial measures as defined in relevant rules of the U.S. Securities and Exchange Commission. Our management takes these measures, among others, into account in its management of our business, and for this reason we believe that investors may find it useful to consider these measures in their evaluation of our performance. None of Group profit from Operations, EBIT (adjusted), EBITDA (adjusted), ROCE and EVA should be viewed in isolation as an alternative to IFRS net income for purposes of evaluating our results of operations; CCR should not be viewed in isolation as an alternative to measures reported in our IFRS cash flow statement for purposes of evaluating our cash flows; and Adjusted industrial net debt should not be viewed in isolation as an alternative to liabilities reported in our IFRS balance sheet for purposes of evaluating our financial condition. Page 29 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.

Siemens Investor Relations Team Michael Sen +49-89-636-33780 Gerald Brady +1-408-492-4439 Florian Flossmann +49-89-636-34095 Sabine Groß +49-89-636-35755 Dr. Martin Meyer +49-89-636-33693 Christof Schwab +49-89-636-32677 Dr. Gerd Venzl +49-89-636-44144 Susanne Wölfinger +49-89-636-30639 Webpage: http://www.siemens.com/investorrelations e-mail: investorrelations@siemens.com Telephone: +49-89-636-32474 Fax: +49-89-636-32830 Page 30 April 2008 Q2 2008 Analyst Conference Copyright Siemens AG 2008. All rights reserved.