1. Transportation
Energy
Information & Communications
Health
Automation & Control
Services
Pictures of the Future: Research and Development at Siemens JASS ´05 St. Petersburg, April Prof. Dr. Dietmar Theis
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2. Innovations have kept Siemens strong for 158 years
Outstanding innovations and sales development by Siemens AG, 1847 – 2005
Sales (in logarithmic scale)
ISDN "HICOM"
First GSM cellular phone with color display
Market launch of Transrapid
Start of Production of large-scale integrated (LSI) circuits
"Eurosprinter"
64-kbit- memory chip
Implantation of first cardiac pacemaker by Siemens
High purity silicon
Fingertip sensors
First 256 megabit chip
First Siemens radio receiver
Digital electronic switching system (EWSD) - first telephone exchange
ICE3
W.v. Siemens discovers dynamo-electric principle
Siretom
computer tomograph
First Simatic
Magnetom
First electric railway
Piezo injection valves
First pointer telegraph
Surface wave technology
First traffic lights
1847
1866
1879
1924
1926
1958
1959
1973
'74
'80
'81
'84
'92 …
'03
Year of introduction
1853 first office St. Petersburg

3. Siemens – Global Network of Innovation (1)
Global presence
(in more than 190 countries)
Broad scope of business
(6 business segments, 13 Groups + SFS, SRE)
Production sites
NAFTA
GER
EUR
ohne D
APAC
SAM
AFR ME 90 87 80 45 12 2
Transportation
Medical
13,3
Europe
7,0
4,1
Lighting
Middle
East
North
America
Asia /
Pacific
Africa
10,8
Power
South
America
20,8
Automation and Control
17,1
Information and
Communications
employees wordwide
(38%) in Germany
(26%) in Europe (w/o Ger)
(22%) in North America
(12%) in Asia-Pacific
(2%) in other countries
External sales in billions of € w/o SFS, SRE) - FY 2003/04
Source: CD S /04

4. Siemens – Global Network of Innovation (2)
R&D expenditure in 2004:
5,1 billions of € …
… more than 50% for Software
(worldwide about Software engineers)
Expenditures in billions of €
Siemens
1,8
4,6
3,9
2,9
2,6
5,1
2,8
4,0
0,5
Information and Communications
Automatin & Control
Power
Transportation
Medical
Lighting
Others
Matsushita
IBM
Sony HP
Business Units
Corporate Technology
Samsung
Hitachi
Toshiba
1 US$ = 0,82125 EUR 1 Yen = 0,00755 EUR 1 Won = 0,00070 EUR GE 1)
1) e/o GECS (GE Capital Services)
Dell
Sourcee: Siemens AG, CD S 8 – 11/04

5. Worldwide Activities in R&D
Bracknell
Pretoria
Lisbon
Zaragoza
Toulouse
Eynsham
Berlin
Brussels
Budapest
Milan
Melbourne
Sydney
Bratislava
Roke Manor
Paris
Helsinki
Zurich
Porto
Bombay
Istanbul
Seoul
Penang
Tel Aviv
Buenos Aires
Sao Paulo
Curitiba
Shanghai
Yokohama
Burlington
Orlando
Auburn Hills
Arlington
Knoxville
Mülheim
Dresden
Erlangen-Nuremberg
Regensburg
Salzburg
Graz
Vienna
Karlsruhe
Taipei
Issaquah
Hoffmann Estates
Bangalore
Beijing
Tokyo
Lake Mary
Austin
Newport News
Princeton
Piscataway
Norcross
Danvers
Linz
Changchun
Xi‘an
Chengdu
Nanjing
Tianjin
Ichon
Date:
Tilbury
London
Peterborough
Drummondville
Chatham
Johnson City
Pittsburgh
Madrid
Sophia Antipolis
Netanya
Pandrup
Oslo
Göteborg
New Delhi
Kakegawa
Kawasaki
Munich
Hong Kong
Goa
Santa Clara
Berkeley
Sacramento
Concord
San Diego
San José
Mountain View
Athens
St. Petersburg
Treviso

6. Corporate Structure (as of October 1, 2004)
Managing Board
Operations
Corporate Departments
Information and Communications
Automation and Control
Power Generation (PG)
Power Transmission and Distribution (PTD)
Power
Communications
(COM)
Automation and Drives (A&D)
Corporate Finance (CF)
Siemens Business Services GmbH & Co. OHG (SBS)
Industrial Solutions and Services (I&S)
Corporate Personnel (CP) *
Transportation Systems (TS)
Transportation
Siemens VDO Automotive AG (SV) *
Siemens Logistics and Assembly Systems (L&A)
Corporate Technology (CT)
Financing and Real Estate
Siemens Building Technologies AG (SBT)
Corporate Development (CD)
Siemens Financial Services GmbH (SFS) * *
Lighting
Osram GmbH *
Corporate Centers:
Corporate Communications (CC)
Corporate Information and Operations (CIO)
Global Procurement and Logistics (GPL)
Chief Economist / Corporate Relations (ECR)
Management Consulting Personnel (MCP)
Siemens Real Estate (SRE)
Medical
Medical Solutions (Med)
Regional Units: Regional Offices, Regional Companies, Representative Offices, Agencies
Legally Separate Group *)

7. Business Model of Corporate Technology
Goal:Creation of Economic Value Added for the Company
Cross Business Group/Segment
Technology Strategies for the Company
Projects for the Business Group (Contract R&D)
Projects to build up new competences
New Business opportunities by external commercialization of technologies and IPRs
Pictures of the Future
- Markets
- Trends
- Technology
- Business
Opportunities
Technology Screening & Analysis
Spin off´s (STA, TTB*)
IP marketing
External marketing of technological services
Innovations Strategies
External Business
Core Business
International Network of Competences- Worldwide Partner for Innovations
* Partnership with A&D,
including spin-in‘s
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8. Structure of Corporate Technology (Status: October 1, 2004)
Corporate Intellectual Property
Intellectual Property Services
Regional Intellectual Property
Intellectual Property Support
Company Name & Trademark Law
Technology Divisions
Materials & Microsystems
Production Processes
Power & Sensor Systems
Software & Engineering
Information & Communications
Business Administration and Controlling
Human Resources
Chief Information Officer Chief Knowledge Office
Strategic Marketing
Corporate Functions
Standardization & Regulation
Information Research Center
Environmental Affairs & Technical Safety
Strategic Planning
Siemens Corporate Research, Inc. 2)
International Relations & Projects
Siemens Ltd. China Corporate Technology 2)
SISL CT 2)
OOO Siemens CT 2)
Siemens Technology 2) Accelerator GmbH
Technology-to Business Center, LLC 2)
Roke Manor Research, Ltd. 1)
1) Functional reporting to Corporate Technology
2) Separate Legal Entity; Part of Separate Legal Entity
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9. Corporate Technology: About 1,700 Researchers and Developers Worldwide …
Berkeley, CA
Roke Manor, Romsey
Berlin
Erlangen
Beijing
Tokyo
München Perlach
Princeton, NJ
New Sites planned in 2005:
Shanghai
St. Petersburg
Moscow
Bangalore

10. Corporate Technology: International Network of Competences – Worldwide Partner for Innovations
Services
1 - 3
Licensing & Transactions
Materials & Microsystems
Production
Processes
Strategy & Communication
Corporate
Intellectual
Property
Corporate Issues & Consultancies
Technology
Divisions
Company Name & Trademark Law
Information & Communications
Power & Sensor Systems
Strategic Marketing
&
Strategic Planning
IP Support
Software & Enginnering
CT China
Intellectual Property US
Siemens Technology Accelerator
Roke Manor Research*
Siemens
Technology-to-Business Center
CT Russia
Standardization & Regulation
Corporate Functions
Environmental Affairs &
Techn. Safety
Information Research Center
Siemens Corporate Research
CT India
CT Liaison Office Tokyo
* functional reporting

11. Materials & Microsystems
Functional Materials for Optoelectronics
Ultrafast Ceramics for Computed Tomography
Polymerelectronic
Functional Polymers
Ceramics
Innovative Electronics
Micromechanics & Coatings
Design
to Prototype (D2P)
Materials & Microsystems
Multichip Module for Radar Evaluation
Parallel Optical Link
Project:
Environmentally
Compatible
Products
Packaging & Assembly
Analytics
Joining Technologies
Electronic Assembly
Eco-Design
of Products
Materials Analysis by Ion Bombardment
Joining of
Plastic Materials
CT / E a

12. Production Processes Become Front-Runner with holistic Solutions
Remote Service Center
Become Front-Runner
with holistic Solutions
Innovation
with System
Service Strategies and Processes
Holistic Processes
Service Management
Product Definition
Field Service
Production Processes
Manufacturing Engineering
Virtual Engineering
From Concept to Product
Simulation & Risk Management
Innovative
Manufacturing Technologies
and Processes
Realized Manufacturing Processes
Structure
Logistics
Technology
World Class
Manufacturing Process
Optimized and reliable Products
With virtual Products and Processes
to shorter Time to Market
Risk Analysis of hybrid Systems
CT / E a

13. Information & Communications
Protection of critical I&C infrastructure: Hacking prevention, incident handling
Knowledge Management: Processes, Methods and Tools for distributed Organizations
User Interface Design Usability Lab
Computer Emergency Response Team (CERT)
User Interface Design
Knowledge Man- agement & Business Transformation
Intelligent Autonomous Systems
Information & Communications
Networks & Multimedia Communications
Intelligent Robots and Software Agents assist everywhere
Interaction Technologies
Security
Neural Computation
Cryptographic Algorithms and Security Solutions and Consulting
We add SENSE to Interaction
Neuro-Fuzzy Techniques for Systems & Industrial Projects
CT / E a

14. The Time Horizons of the R&D Activities of the Business Groups and of Corporate Technology are Different
R&D Expenses
Total R&D expenses
Business Groups
Corporate Technology
Today
One product generation in the future
Two product generations in the future
Time to market
(The absolute time scale depends on business)
A seamless transition from R&D in Corporate Technology to the Business Groups is crucial for our success

15. CT´s Technology Divisions: „Driver“ and „Provider“ of Innovations and Technologies
Strategic principles
Focus & Multiple Impact
Key Account Management
Networking internally & externally
Systematic Technol.&Innov Planning
„Strengthen the strength“
Acting as entrepreneurs
Decentralization of responsibilitites
Performance differentiation
Contracted
R&D for
groups
Technology “Provider“
58 %
Know-
How
External
funding
7 %
Technology “Driver“
35 %
Corporate
funding
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16. Technology-to-Business Center and Siemens Technology Accelerator
Driving innovative technologies for “emerging markets”
Combining technology and business orientation
Generating new business through innovations:
embedded in existing Siemens structures
as start-up foundation
Providing support through “seed money” from the business partners
Impact on innovation and entrepreuneurship culture
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17. Strategic Planning of Innovations & Technologies
Strategic Visioning
Scenarios for the
Business Segments
Medical
Transportation
Power
Automation and
Control
Information and Communications
Lighting
Factors of Influence
Individual
Society
Politics
Economy
Environment
Technology
Customers
Competition
Core Technologies: Sensors and Actuators
"Extrapolation“ via
Roadmaps
Products
Technologies
Customer Requirements
Short-term
Medium-term
Long-term
Horizon of time (varies significantly in the different business segments)
Today
Today‘s Business
"Retropolation" out
of Scenarios
New Markets
New Customer Requirements
New Technologies
New Businesses
The combination of extropolation and retropolation leads to the
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18. : Detailed Description of All Relevant Trends of Our Business Segments
Transportation
Power
Information &
Communications
Medical
Automation & Control
Lighting
Socio-economic trends
society
life of work
Market trends
size / growth
structure
geographical
Customer / business trends
value chains / networks
company´s structure
processes
Technological trends
strategic importance
multiple impact
disruptive
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19. Future Electrical Engineering and Electronics: Main Trends with Relevance to Technology and Key Technologies
„Software“
Software substitutes hardware
Increasing complexity
Miniaturisation
Decentralisation of intelligence
Integration
Modularisierung
Integration
Virtualisation
Individualisation
Standardisation
Sustainability
Modularisation …
Functional materials
Robotics
IT-security
Neuro-/ bio-informatics
System architecture
Simulation/ optimization technologies
Augmented/ virtual reality
Image and speech processing
Pervasive computing
Light weight materials
Intelligent sensors & actuators
Nanomaterials
Intelligent Displays
Nanosystems
Selforganizing systems
Mikro(nano)-electronics
Semantic web
Grid computing
„Biochips“
Knowledge discovery
Embedded systems
„Systems“
„Materials“
Core competence: interdisciplinary research and knowledge management

20. Research and development Research and development policy
Aspects for the Cooperation With the International public research
Awards,
scholarship
Temporary student employees, interns, students working on theses, doctoral candidates, appointments to chairs and other teaching assignments
Bilateral research projects, contract research
Publicly funded projects
Research and development
Recruiting
Equipment, training material, partnerships with schools
Training/Education
Symposia / workshops
Experience-sharing
Research and development policy
“Siemens sponsors”
Requirements profiles for engineers and scientists, internationalization, curricula, contributions to the work of associations
Structure of the research landscape, overall legal situation
Future markets, labor situation, knowledge society
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21. Scientific Cooperation with International Public Research Institutions is of Great Importance for Siemens
It helps integrating our R&D base in areas in which we do not (yet) have expertise of our own.
It gets us in touch with the latest results of basic research and likewise supports the understanding of the research partner for modern applications.
It facilitates recruiting top-notch young talent in the areas of engineering and science.
It builds up our image by giving us a presence in the “scientific community”.
We also support university research and education by supplying experts for about 350 teaching and visiting positions.
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22. When the winds of change are blowing, some build shelters and some build windmils . . .
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24. Siemens Corporate Technology: Mission, Vision and Strategy
Goal: Creation of Economic Value Added for the Company
Mission:
Securing the
technological future
and
Increasing the competitiveness
of the company in close
cooperation with the
Business Groups and
Regional Units
Vision
Network of Competences
&
Partner for Innovations
Strategy
Concentrating on core technologies
Internal and external networking and cooperation
Increased customer orientation
Decentralizing responsibilities and fostering technopreneurship
Success-oriented allocation of resources
Systematic innovation and technology planning process
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25. The Top Ten Companies in Electrical Engineering and Electronics in Fiscal Year 2004
119,0
Total sales (in billions EUR)
Sales in electrical engineering and electronics (in billions of euros)
77,8
75,2
73,9
67,4
65,6
67,7
61,6
63,7
55,9
54,5
58,5
49,2
49,0
43,4
43,6
38,8
39,1
38,8
30,9 GE
IBM
Siemens
Hitachi
Hewlett-
Packard
Matsu-
shita
Sony
Samsung
Electronics
Toshiba
Dell
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