MIT Manufacturing Summit

1. MIT Manufacturing Summit US Manufacturing impressions from a Global conglomerate Cambridge, October 2011

2. Innovation has been making Siemens strong for over 160 years Overview of Siemens origin & growth • Outstanding innovation and sales development of Siemens AG, since 1847 « Sales, in logarithmicscale A company like Siemens can only be lastingly successful with technologically superior products. We must constantly produce innovations that give us an advantage over the competition. Heinrich von Pierer,shareholders' meeting Jan 23, 2003 » "Eurosprinter" Start of productionof highly integratedLSI circuits ISDN"HICOM" First GSMmobile phone with color display Digital EWSDtelephoneexchange World's first pacemakerfrom Siemens First 256Mbit chip First Siemensradioreceiver First pointertelegraph 64 kbitstorage First Simatic Magnetom ICE3 Electrictrain Sensor "Fingertip" W. v. Siemens develops Dynamo First trafficlight "Synapse 1" 1847 1847 1866 1866 1879 1879 1926 1926 1958 1958 1959 1959 1973 1973 1974 1974 '80 '81 '82 '84 '92 … '03 '03 1924

3. 0 Siemens has 4 Sectors, with 60,000 employees and $25 Billion in revenue in the US during FY10 Overview of Siemens businesses & size • Siemens Sector & Division setup, with employees & revenue (USD) for FY!0 Industry Energy Healthcare Infrastructure & Cities Fossil Power Generation Industry Automation Imaging & IT Building Technologies Medium & Low Voltage Renewable Energy Drive Technologies Workflow & Solutions Smart Grid Oil & Gas Customer Services Diagnostics Mobility Power Transmission Osram Key FY10 information Global Employees: 405,000 US Employees: 60,000 Global Revenue: $104 Billion US Revenue: $25 Billion

4. A review of Siemens Mfg landscape, shows opportunities & challenges exist in the US US mfg overview & comparison • US manufacturing overview Current opportunities for Siemens in the US Siemens Manufacturing Overview United States • Nearly 100 manufacturing sites across US • Allfour Sectors & all of the divisions have US manufacturing facilities • Locations in all 50 states • Sites originate from both investment & acquisition • Limited return to US once off-shoring occurs Germany • Majority of manufacturing capacity with continually heavy investments in automation • Off-shoring generally for non-critical components Rest of World, mainly emerging markets • Traditional focus on low-cost, low-value mfg • Recent shift to local-for-local & local-for-global • ~3,000 open positions in US • Majority are manufacturing related • Average potential salary ~$89,000 • Refocus on US manufacturing • Exchange rates helping to maintain competitive US costs / investments • Perception that intellectual property needs to be preserved in US & EU Current challenges for Siemens in the US • Identifying candidates & hiring for open positions • Remaining cost competitive • Ensuring continued innovations in both products & mfg processes

5. Examples of global mfg strategies, resulting in an expansion of US-based mfg value-add Mfg project examples that I led • Global manufacturing strategies followed a process to obtain results Results Manufacturing strategies Process & evaluation Energy Sector • Workshop footprint strategy • Identify required core competencies • Generally based on market differentiators • Can include considerations for IP & trade secrets • Evaluate existing capabilities & future demand • Determine location & workforce to deliver core competencies • Develop a detailed business case: • Rationale for changes • Financial analysis (NPV, cashflow, P&L impact) • Project timeline • Risk assessment & mitigations EnergyImpacts • Opened anew site in the US • Based on a manufacturing innovation • Enhanced product portfolio, while reducing costs Industry Sector • EBIT improvement & manufacturing best practices Industry Impacts • Shifted high value-add work to US for customized products • Increased focus on high margin customized solutions • Low skill & high-run-rate work remained in Mexico facility

6. Siemens’ Healthcare portfolio designed to enhance patient outcomes from diagnosis to treatment Current area of responsibility • Siemens Healthcare portfolio overview Understand the patient‘s disease Understand the patient‘s biology Leverage state-of-the-art databases • Diagnosis of a disorder (e.g. infection, cancer, …) • Localization of disease (e.g. stenosis, tumor, …) • Reveal multi-morbidities • Genetic pre-disposition • Patient metabolism / immune reactions • Molecular specificities of the disease • Stratification for treatment • Assessment of similar cases • Structured outcome analysis • Decision support systems • Standards of Care Imaging, Diagnostics Molecular applications Healthcare IT

7. Trends in Healthcare require improvements in innovation & manufacturing Trends in my area focus on innovation & manufacturing • Healthcare market trends with needed responses and statement from Eric Spiegel Market trends Need for improved healthcare • Growing & aging population • Emerging rural healthcare • High growth in emerging markets • Increasing demand for healthcare services • Diverse & scattered customer base • Cost pressure (e.g. Deficit Reduction Act) • Financing problems • New structure of competitors • Innovations needed to drive customer & Siemens cost reductions • Improved processes & workflows • New applications & clinical pathways • Flexible and customer-specific IT solutions • Disease orientation • Healthcare IT

8. Closing statement – invest in education & training Closing statement as said by CEO of NA “The old jobs are not coming back. We need to invest in education and training to get people prepared to fill these high-skilled, high-wage jobs of the future” – Eric Spiegel, president & CEO of Siemens Corp (NAFTA)