Siemens Corporate Responsibility Social and governance perspectives Mohamed El-Mahdi Chairman and Managing Director Siemens S.A.E. 1

…values for our global business Siemens’ values… …values for our global business Responsible Committed to ethical and responsible actions Excellent Achieving high performance and excellent results Innovative Being innovative to create sustainable value

Economic Social Environmental Only sustainable business results in long-term success and profitable growth Corporate Citizenship Labor Practice Indicators Human Capital Development Social Reporting Talent Attraction & Retention 100% Corporate Governance Risk & Crisis Management Codes of Conduct / Compliance Customer Relationship Management Innovation Management 100% Average Score* Economic 50 % Social Siemens accredited as Industry Leader in Siemens Score Average Score* 82 % 61 % Siemens Score Environmental 91 % Key Messages: Siemens substantial efforts in making the company clean is greatly acknowledged externally In the DJSI, Siemens was recently accredited as a sector leader, because of its outstanding efforts in the three dimensions of the index – social, environmental and economic In particular, Siemens’ fight against corruption was valued highly Link: http://www.sam-group.com/yearbook/download/yearbook_current.pdf Average Score* 44 % Eco-Efficiency Environmental Reporting Siemens Score 83 % *Average score of all assessed companies in the sector Source: sam 2009, Corporate Sustainability Assessment – The Yearbook Economic Dimension   Criteria Company Score (%) Corporate Governance 88 Risk & Crisis Management 100 Codes of Conduct/Compliance/Corruption&Bribery Customer Relationship Management (IS) 93 Innovation Management (IS) 68 3

How to become a “recognized leader”? Did we always meet the expectations? How to become a “recognized leader”? Immediate Actions Implementation 2006 2007 2008 2009 2010 Compliance Program Conti- nuous Improve- ment Exchange of Leadership Team Continuous Improvement Compliance Organization Tone from the Top Values & Integrity Compliance Training Independent investigation Collective Action Compliance Tools Centralization of bank accounts Sustainable Development 4

Middle Management needs to Continuous communication on all levels …and integration in all processes is key Middle Management needs to Anchor compliance in the entire value chain Promote Siemens' compliance tools Full commitment towards Compliant 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" 5

Collective Action Siemens’ approach to drive fair market conditions Continuous stakeholder dialogue Collective Action project Project Compliance Learning Initiative Collective Action Learning Initiative NGO IO Top 5 NGOs 1) Transparency International UN Global Compact World Economic Forum Fight corruption in joint agreement with industry peers and other stakeholders Promote Integrity and Compliance Pacts as well as Long-Term Initiatives in order to foster fair competition in public sector www.siemens.com/integrity-initiative to fight fraud and corruption (US$ 100 million over next 15 years) Increase compliance awareness of current and future business leaders Share compliance best practices with stakeholders by www.siemens.com IBLF World Bank Institute ICC www. CIPE Harvard Case Study2) Knowledge transfer Learning Compliance 1) NGO: Non-Government Organization TI: Transparency International ICC: International Chamber of Commerce IO: International Organization PACI: Partnering Against Corruption Initiative CIPE: Center for International Private Enterprise IBLF: International Business Leaders Forum 2) Is designed for class room discussions in university and highlights the importance of business integrity and compliance. Final draft will be presented by Harvard in Q2 FY 2010 6

Controls and reporting are main elements … in 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 ethical? Is it something I am willing to be held accountable for? 4 7

Siemens CSR activities in Egypt STP – Earth Workshop INDAC Vocational Training Centers Best In Class The Green Box The Discovery Box

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