GEO Netherlands Chapter Event Siemens Equity Strategy DRAFT

For internal use only / Copyright © Siemens AG All rights reserved. Page 2 CD EA - May 2013 Agenda The Siemens Equity Strategy Plan Design Communication Equity Culture Enhancement Project

For internal use only / Copyright © Siemens AG All rights reserved. Page 3 CD EA - May 2013 Divisions  Rail Systems  Mobility and Logistics  Low and Medium Voltage  Smart Grid  Building Technologies  OSRAM 1 Divisions  Rail Systems  Mobility and Logistics  Low and Medium Voltage  Smart Grid  Building Technologies  OSRAM 1 Divisions  Fossil Power Generation  Wind Power  Solar & Hydro  Oil & Gas  Energy Service  Power Transmission Divisions  Fossil Power Generation  Wind Power  Solar & Hydro  Oil & Gas  Energy Service  Power Transmission Divisions  Imaging & Therapy Systems  Clinical Products  Diagnostics  Customer Solutions Divisions  Imaging & Therapy Systems  Clinical Products  Diagnostics  Customer Solutions Divisions  Industry Automation  Drive Technologies  Customer Services Divisions  Industry Automation  Drive Technologies  Customer Services Siemens – sectors and divisions 1) In fiscal2011, Siemens announced its intention to publicly list OSRAM and, as an anchor shareholder, to hold a minority stake in OSRAM AG over the long term EnergyHealthcareIndustryInfrastructures & Cities Financial Information  Employees: 86,000  Revenue (in Mio. €): 27,500  Income (in Mio. €): 2,200 Financial Information  Employees: 51,000  Revenue (in Mio. €): 13,600  Income (in Mio. €): 1,800 Financial Information  Employees: 105,000  Revenue (in Mio. €): 20,500  Income (in Mio. €): 2,500 Financial Information  Employees: 89,000  Revenue (in Mio. €): 17,600  Income (in Mio. €): 1,100 Siemens AG  Employees: 370,000  Revenue (in Mio. €): 78,300  Income (in Mio. €): 5,200  Global powerhouse in electrical engineering and electronics  working to develop products, design and install complex systems and projects, and tailor a wide range of services for individual requirements.

For internal use only / Copyright © Siemens AG All rights reserved. Page 4 CD EA - May 2013 "I've still always found that it's the greatest waste not to give those involved in managing businesses a share of the results." Werner von Siemens, 1868 "I will not sell the future for short-term profit!" Werner von Siemens, 1884

For internal use only / Copyright © Siemens AG All rights reserved. Page 5 CD EA - May 2013 let employees share in the company‘s development foster entrepreneurship strengthen the motivation and engagement by letting the employees participate assure long-term retention recruit professionals Offering various share programs with more than 148,000 participants worldwide, Siemens already holds a leading position in the field of equity-based compensation and is striving to be a Thought Leader. The Siemens Equity Culture Peter Löscher has laid the groundworkfor a living Equity Culture embedded in the overall company culture with the objective to:

For internal use only / Copyright © Siemens AG All rights reserved. Page 6 CD EA - May 2013 Being a role model Act as One Siemens Spreading Equity Culture into the organization Equity as global brand Act as One Siemens Equity as attractive HR instrument Strategic HR com- pensation element Element of local employer branding Market competitive benefit system Accordance with local market best practice Retain & engage employees Support entre- preneurial spirit Foster sustain- able behaviour Support mobile high potentials Perception in the War for talents Support long- term thinking Tone from the Top Living the Equity Culture Equity Culture fosters employees to act as one Siemens. Local attractiveness is key success factor for living Equity Culture. Living the Equity Culture

For internal use only / Copyright © Siemens AG All rights reserved. Page 7 CD EA - May 2013 Tone from the Top Act as One Siemens Global Communication Equity as global brand Local Communication Equity as attractive HR instrument e.g. CEO Trailer, Equity Culture booklet Tailor-made communication material in order to meet local requirements Tailor-made communication strategy to live a sustainable Equity Culture Commitment Top Senior Management Spread the vision of a global Siemens Equity Culture e.g.  Road shows  Local, individual trailer  Town-hall-Meetings  External, local communication  Local brochure/flyer  Face-to-face communication  Local Management team meetings Toolbox  Template cover letter  Key messages  Poster, Banner  Key visual Media package  Web-based training  Brochures  Equity Trailer

For internal use only / Copyright © Siemens AG All rights reserved. Page 8 CD EA - May 2013 Plan Design

For internal use only / Copyright © Siemens AG All rights reserved. Page 9 CD EA - May 2013 Siemens’ Share Programs Share Matching PlanCEO Special Allocation Share Ownership GuidelinesPerformance Oriented Stock Awards

For internal use only / Copyright © Siemens AG All rights reserved. Page 10 CD EA - May 2013 Share Matching Plan 2013 Key Messages 148,000 Siemens employees are part of the Siemens equity cultureHighlights Share Matching Plan 2013 Population and Country ScopeShare Matching Plan 2013 – 107,000 elections  Over employees elected to participate in the Share Matching Plan 2013  This represents an increase of 5% compared to the previous year´s election 380,000 employees in 60 countries were eligible to participate in the Share Matching Plan  Share Matching Plan 2013 implemented in 1 additional country (UAE).  Equity Culture Enhancement Project for optimizing local communication measures and establishing a living equity culture in the whole organization. - CZ: Participation rate increase of 17,6 % - SG: Constant participation rate although negative trend in Asia visible  MIP participation rate increase of 11% on a global level  9% increase of the participation rate in total in Central Eastern Europe  Constant increase of the participation rate in Germany - BAP: + 7% - MIP: + 12%  Constant positive trend in Middle East Since 2009 the participation in the Share Matching Plan is constantly increasing. World- wide about 148,000 Siemens employees are part of the Siemens equity culture by owning shares from one of the Siemens share plans. This is 54% more than % +5% Please note: all figures including OSRAM 380, (54 countries)2011 (54 countries)2011 (54 countries)2011 (54 countries)2012 (59 countries)2012 (59 countries)2012 (59 countries)2012 (59 countries) 380, , (7 countries)2009 (7 countries)2009 (7 countries)2009 (7 countries)2013 (60 countries)2013 (60 countries)2013 (60 countries)2013 (60 countries) 347, , (40 countries)2010 (40 countries)2010 (40 countries)2010 (40 countries) , , , ,000 96, , , , , ,000

For internal use only / Copyright © Siemens AG All rights reserved. Page 11 CD EA - May 2013 Communication

For internal use only / Copyright © Siemens AG All rights reserved. Page 12 CD EA - May 2013 Global Equity Culture Communication Toolbox The global Equity Culture Communication Toolbox shows two different communication approaches. The direct, meaning fact to face communication and the indirect, media driven communication. CEO/CFO Interviews  Buy in of major stakeholders  Interviews with country CEOs/CFOs regarding Equity Culture and Equity Based Compensation CEO/CFO Interviews  Buy in of major stakeholders  Interviews with country CEOs/CFOs regarding Equity Culture and Equity Based Compensation Local Management Communication  Tone from the top  Knowledge Transfer regarding compensation structure and Equity Based Compensation  Face-to-face meetings Local Management Communication  Tone from the top  Knowledge Transfer regarding compensation structure and Equity Based Compensation  Face-to-face meetings Personalized s  Outline attractive benefit  Individualized communication to all eligible employees in the respective country  Joint responsibility between GSP and local HR Personalized s  Outline attractive benefit  Individualized communication to all eligible employees in the respective country  Joint responsibility between GSP and local HR External Local Communication  Siemens as Employer of Choice  Articles in different local newspapers (trade press)  Local conferences and congresses External Local Communication  Siemens as Employer of Choice  Articles in different local newspapers (trade press)  Local conferences and congresses Brochures  Target-oriented and cost efficient  Provision of individual brochures, posters and banners adjusted to the local requirements (content, key visuals etc)  Joint responsibility: Local HR and GSP Brochures  Target-oriented and cost efficient  Provision of individual brochures, posters and banners adjusted to the local requirements (content, key visuals etc)  Joint responsibility: Local HR and GSP Trailers  Spread the vision of the local Equity Culture  Individual Emotions Trailer  Video Statement of local management Trailers  Spread the vision of the local Equity Culture  Individual Emotions Trailer  Video Statement of local management Direct / face to face communication methodsIndirect / media driven communication methods Banners  Target-oriented and cost efficient  Provision of individual brochures, posters and banners adjusted to the local requirements (content, key visuals etc)  Joint responsibility: Local HR and GSP Banners  Target-oriented and cost efficient  Provision of individual brochures, posters and banners adjusted to the local requirements (content, key visuals etc)  Joint responsibility: Local HR and GSP Posters  Target-oriented and cost efficient  Provision of individual brochures, posters and banners adjusted to the local requirements (content, key visuals etc)  Joint responsibility: Local HR and GSP Posters  Target-oriented and cost efficient  Provision of individual brochures, posters and banners adjusted to the local requirements (content, key visuals etc)  Joint responsibility: Local HR and GSP

For internal use only / Copyright © Siemens AG All rights reserved. Page 13 CD EA - May 2013 Global Equity Culture Communication Toolbox Direct Communication The global Equity Culture Communication Toolbox shows two different communication approaches. The direct, meaning fact-to-face communication and the indirect, media-driven communication. Direct communication Local Management Communication Tone from the top Knowledge Transfer regarding compensation structure and Equity Based Compensation Face-to-face meetings Local Management Communication Tone from the top Knowledge Transfer regarding compensation structure and Equity Based Compensation Face-to-face meetings CEO/CFO Interviews Buy in of major stakeholders CEO/CFO Interviews Buy in of major stakeholders

For internal use only / Copyright © Siemens AG All rights reserved. Page 14 CD EA - May 2013 The global Equity Culture Communication Toolbox shows two different communication approaches. Global Equity Culture Communication Toolbox Indirect Communication Personalized s Outline attractive benefit Personalized s Outline attractive benefit External Local Communication Siemens as Employer of Choice External Local Communication Siemens as Employer of Choice Brochures Target-oriented and cost efficient Brochures Target-oriented and cost efficient Trailers Spread the vision of the local Equity Culture Trailers Spread the vision of the local Equity Culture Banners Target-oriented and cost efficient Banners Target-oriented and cost efficient Posters Target-oriented and cost efficient Posters Target-oriented and cost efficient Indirect communication

For internal use only / Copyright © Siemens AG All rights reserved. Page 15 CD EA - May 2013 Current global Equity Culture Trailer  Theme and content - “That’s why we hold a part of it” - “Proud to be Siemens” - “Siemens Equity Culture”  Media channel - local country websites - youtube.com  Music Emotional music that transports the message of being proud to own a part of Siemens by being a shareholder  Motives Siemens employees achieving daily greatness Trailer In addition to the “regular communication material” an individual local emotions trailer can be produced adjusted to your special local needs.

For internal use only / Copyright © Siemens AG All rights reserved. Page 16 CD EA - May 2013 Equity Culture Enhancement Project

For internal use only / Copyright © Siemens AG All rights reserved. Page 17 CD EA - May 2013 Equity Culture Enhancement Project A communication mix designed for local needs under the global umbrella is supporting our sustainable company´s Equity Culture. Implementation of a communication mix that…  establishes a global living and sustainable Equity Culture  is local and target group oriented  supports the global branding  is cost efficient and effective Localized Communication in Pilotcountries, e.g.:  Country CEO Video Statement  Road Shows  Localized Poster and Roll Ups  Employee Survey Project TargetMeasures Project Setup 6 Pilotcountries were selected with three different communication approaches of intensity Module 1 Low intense communication Module 2 Medium intense communication Module 3 High intense communication Result The Communication approach has a significant impact on participants. A perfect communication mix aligned with local communication needs increases the awareness and the understanding. Nevertheless a continuesly communication is key for success. Brazil Austria MexicoMalaysia Singapore Czech Republic

For internal use only / Copyright © Siemens AG All rights reserved. Page 18 CD EA - May 2013 Global Survey Analysis Highlights  General attitude towards shares influences awareness and plan participation in a positive way  Employees who invest in shares (not necessarily in Siemens shares) have the highest awareness and participation rates  Negative general attitude towards investment in shares has only little influence on awareness whereas the negative impact on participation is high  Employees are aware and participate in the SMP independant from how they evaluate the risk of investing in Siemens shares (high or low risk)  Influence of process design is heterogenous  Process parts which are easy to understand lead mostly to high awareness and participation rates  Evaluating the process as difficult to understand has a negative influence on awareness, but only little influence on participation compared to evaluating it as easy to understand  Second survey shows strong increase of awareness  Strong increase of awareness is confronted by a little increase of participation  Strong increase of awareness in MX and CZ, whereas in total employees from SG and CZ are most aware of the plan  Little increase of participation however participating employees act as multipliers for the plan communication  Supports findings from the first survey that participation is mainly influenced by a positive general attitude towards shares  Communication has impact on behavior, particularly on awareness  Election statistic over time for SG and CZ in focus show an impact of communication on elections  According to the second survey, communication tools (Intranet, Events and Print media) increased the awareness of employees Influence on general attitudeInfluence on process design Comparison first and second surveyInfluence on communication

For internal use only / Copyright © Siemens AG All rights reserved. Page 19 CD EA - May 2013 " I take it as a given that our employees should be offered, beyond their daily work, the possibility to invest in the long-term future development of the our company. Through our share programs, we encourage our employees to take a stake in the company as responsible shareholders. " Peter Löscher, 2010