Infrastructure & Cities Sector Status: November 2012

1. Siemens – The company Infrastructure & Cities Sector Status: November 2012

2. 3 Major developments impact our life for decades Global Megatrends Demographic change • Tremendous increase in world population to 9bn in 2050 vs. 7bn in 2010 • Aging of societies: Generation 65+ almost triples until 2050 Urbanization • Urban population expected to increase to ~70% in 2050 vs. ~50% in 2010 • Numerous megacities arise, especially driven by growth in emerging markets Climate change • Climate change is a fact, threatening humans and biosphere • Costs of inaction will exceed costs of taking early action by far Globalization • Increasing interdependence of economies, politics, culture & other areas of life • BRIC countries with strongest growth: China outruns U.S. in GDP before 2040

3. New Sector organization of Siemens aligned with the global trends Attractive markets driven by megatrends Energy Healthcare Industry Infrastructure & Cities Fossil Power Generation Imaging & Therapy Industry Automation Rail Systems Wind Power Drive Technologies Mobility and Logistics Clinical Products Solar & Hydro Customer Services Low and Medium Voltage Diagnostics Smart Grid Power Transmission Customer Solutions Oil & Gas Building Technologies Energy Service Climate change Demographic change Globalization Urbanization

4. We are in the "urban millennium" Population • 2009: 50% of the world's population lives in cities • 2030: urban population will grow from 3.5 billion to 4.7 billion Economy • ~50% of global GDP is produced in 600 cities • By 2025, 40% of global GDP growth will be generated by middleweight cities in emerging markets Environment Cities stand for • Two-thirds of the world's energy • 60% of its drinking water • Up to 70% of its CO2 emissions

5. Cities are economic powerhouses – middleweight cities in emerging markets play a crucial role in future growth Tomorrow Today Nearly 40% of GDP will be generated by middleweight cities in emerging markets 22% of the world's population generates51% of global GDP BIP 6.6 billion 55.5 trillion USD GDP growth, 2007–2025 100% = 20% 23 29 Rural areas 51% 13% 29 32 16% 9 Small cities and other urban areas 15% Other Cityscope (~1,400 cities) 39 15 10 12% 51% Small Large 14 22% City 600 Midsized Population GDP Emerging market middleweight cities Middleweightcities Emerging market small cities and rural areas Emerging market megacities Developed economies Source: McKinsey Source: McKinsey

6. London Copenhagen Chongqing 3) Toronto 1990 - 2030 2005 - 2025 2005 - 2020 1990 - 2050 -20% Carbon-neutral 1) -60% -80% Munich 2) Wuhan 3) 1990 - 2030 2005 - 2020 New York -20% -50% Mexico-City 2005 - 2030 2008 - 2012 -30% -12% Jakarta Singapore 2009 - 2020 2007 - 2020 -30% -16% Cities are committed to clear CO2 reduction targets Cities and their CO2 reduction/energy efficiency targets 1) Carbon-neutral means that the city can offset its emissions by investing in Kyoto Protocol-style projects that reduce pollution elsewhere 2) Target for Munich per capita against 1990 level 3) Relative target for China per unit of economic output (GDP) Source: Desk research; team sustainable cities

7. Siemens Infrastructure & Cities Sector addresses a large market with strong growth Addressable market • Urbanization EUR 236 billionIC market size in 2011 • "Green" economy Market growth p.a., 2011-17 • Increasing mobility • World GDPgrowth • 3.4% • Growing infrastructure congestion • IC market Above average growth

8. Basic needs of a city – Success determines competitiveness Efficient transportation of people and goods Being competitive! Reliable and efficient supply of energy Low emissions, water usage and waste Comfort, life quality and security Requirements are drastically changing from closed island solutions /single products to cross-linked intelligent infrastructure solutions

9. Efficient transportation of people and goods Reliable and efficient supply of energy Comfort and security Low emissions The Infrastructure & Cities Sector has an increased focus on customer needs Customer needs Infrastructure & Cities Sector Solutions / Systems Products / Services City Account Management & Cities Center of Competence Rail Systems Mobility and Logistics Low and Medium Voltage Smart Grid Building Technologies Overarching function

10. IC mission: Transform cities for the better through sustainable technology Rail-bound transit solutions Intelligent traffic management Smart grid solutions • High-speed and metro rail • Train control systems • Traction power supply • Demand response system • Decentralized energy management • Grid automation • Traffic flow management • Tolling systems Safety and security Examples of IC portfolio • Fire safety • Access control and identification We are the pioneering partner for infrastructure & cities and address our customers‘ needs such as Energy efficient buildings • Clean technology • Efficient use of resources • Connected information • Automation of infrastructure • Building Automation • Energy performance contracting Siemens’ financialservices, watertechnologies, energysupplyandlighting complementtheICportfolio

11. Large installed base in building technologies • > 6,000,000 buildings with Siemens technology • 40% of commercial buildings in Manhattan Strong in remote monitoring services • 45'000 buildings already linked with Advantage Operation Centers (AOC), growing rapidly The IC Sector has a strong starting position Buildingtechnologies Transportationand logistics Power grid solutions Global leader in rail systems Strong position in energy automation market • 50% of all major railway companies worldwide are Siemens customers • Already >500 completed railway projects in the city domain • Siemens with long-standing customer relations • Most comprehensive portfolio of competitors Strong position in airport logistic solutions Leading position in gas-insu-lated switchgears (MV) • Technology leader in airport baggage and cargo handling • > 200 of world top 300 airports are Siemens customers • Siemens as technology leader • High customer value from efficient space usage, especially in high-density areas

12. 3 IC reporting structure – Key figures for Q3 and FY 2012 Key figures1) Infrastructure & Cities Rail Systems Mobility and Logistics Low and Medium Voltage SmartGrid Building Technologies External Reporting Structure Transportation& Logistics Power Grid Solutions& Products Building Technologies Q4 12 2) FY 2012 Q4 12 2) FY 2012 Q4 12 2) FY 2012 New orders 1,227 (-22%) 5,382 1,662 (+3%) 6,275 1,580 (+4%) 5,809 Revenue 1,705 (+4%) 5,969 1,784 (+7%) 6,068 1,599 (+7%) 5,820 Profit 73 236 200 457 153 379 Profit Margin (%) 4.3% 4.0% 11.2% 7.5% 9.6% 6.5% 1) in millions of Euros 2) vs. Q4 FY11

13. Q4 Q3 Q1 Q2 FY 2012 Infrastructure & Cities Sector Rail Systems Division Division profile New orders / innovations in Q4 The Rail Systems Division (RL) is responsible for Siemens' entire rail vehicle business – including everything from trains, metro systems and locomotives to trams, light rail systems and rail related services. Supporting railway operators worldwide, our employees collaborate with customers on a local basis to develop tailor-made mobility solutions. IC has received an order for the turnkey construction of a tram system in the capital Doha aimed at transforming Qatar into a knowledge-based society. The order is worth more than 100 million euros. The scope of supply also includes signaling and communication systems, electrification as well as the depot equipment. IC will also be equipping four of the stations with platform edge doors. Nineteen Avenio trams will run on 11.5 kilometers of track without any overhead contact lines. The system will be installed on the university campus and serve 25 stations. The trams will be equipped with the Sitras HES energy storage system from IC, with energy being supplied at the tram stops. The tram system will enter service in autumn 2015. Technology highlights – examples Desirocommuterand regionaltrains Velarohigh-speedtrains

14. Rail Systems: Solutions for moving people andgoods in cities and between cities Speed (km/h) Velaro Eurosprinter Vectron Eurorunner Asiarunner ICx Station City Viaggio Desiro Megacity Avenio, S70ULF, Inspiro Airport Village 1 10 30 50 Average distancebetween stops (km)

15. Q4 Q3 Q1 Q2 FY 2012 Infrastructure & Cities Sector Mobility and Logistics Division Division profile New orders / innovations in Q4 The Mobility and Logistics Division (MOL) provides services for customers whose business models are based on optimizing passenger and freight transport. The division bundles all of Siemens' activities in the area of intermodal traffic, transport and logistics management. Its offerings include rail automation systems, infra­structure logistics systems, intelligent traffic and transport systems, and solutions for electric mobility infrastructures. ESTEL RA, a joint venture of the Algerian national railway SNTF (Société Nationale des Transports Ferroviaires) and Siemens, has been awarded a contract to deliver signaling and telecommunica-tions systems for a new railway line between Djelfa and Laghouat. The customer is the Algerian railway agency ANESRIF. The order volume for IC is worth about 68 million Euros. Commissioning is scheduled for autumn 2015. Technology highlights – examples Baggage Handling Systems End positiondetector

16. 3 Mobility and Logistics: Accelerate traffic flow and reduce CO2 emissions with intermodal traffic management Integrated solutions based on … • Intercity and high-speed transport • Commuter and regional transport • Urban transport • E-mobility solutions for road traffic(including e-cars and e-buses) • Integrated traffic management • Parking management • City tolling … are the key to safe, clean, and reliable mobility

17. Q4 Q3 Q1 Q2 FY 2012 Infrastructure & Cities Sector Low and Medium Voltage Division Division profile New orders / innovations in Q4 The Low and Medium Voltage Division (LMV) supplies public energy providers, industrial companies and municipal utilities with a complete range of products, systems and solutions for power distribution infrastructures. The portfolio includes highly reliable power distribution technology for conventional and renewable power plants as well as intelligent, compact switching stations for urban and rural distribution networks. It also offers energy efficient solutions for heavy industry, the oil and gas industry, the process industry and for the integration of renewable energies and of energy storage devices into power grids. • Effective August 31, 2012, IC has acquired Australia's Kaon Holdings Pty Ltd, headquartered in Brisbane, Queensland. Together with its subsidiaries Kaon Electric Pty Ltd and Kaon Consulting Pty Ltd, the new acquisition develops and sells products for energy distribution via medium-voltage overhead lines. The acquisition expands IC‘s business in power distribution networks. Technology highlights – examples SIVACON PowerDistribution Systems Boards and Busbars Powersupply forships

18. Low and Medium Voltage: Providing totally integrated power distribution for a smart building Integration of small renewable power generation Communication withthe smart grid Connecting greenbulk power Low voltage power supply for industrial sites Medium Voltage Transformer Substation Low voltage distribution switchboard Low voltage power supply for smart buildings Low voltage power supply for e-Cars and general transportation Power Exchange from and to the urban medium voltage grid

19. Q4 Q3 Q1 Q2 FY 2012 Infrastructure & Cities Sector Smart Grid Division Division profile New orders / innovations in Q4 The Smart Grid Division (SG) provides the industry’s most comprehensive portfolio of hardware equipment, software systems and services to plan, build, operate and optimize Smart Grids. The Siemens Smart Grid set of vertical and horizontal, end-to-end solutions build on Siemens’ unmatched understanding of the energy generation, transmission, distribution and consumption eco systems. Siemens Smart Grid enables utilities to transform from commodity providers to added-value service providers and builds secure and efficient infrastructure grids worldwide. • Hawaii's first rail rapid transit system is due to be built in Honolulu by 2019. IC has received a multi-million US dollar order to electrify the entire track. The customer is the Ansaldo Honolulu Joint Venture. The Joint Venture is made up of Ansaldo STS and Ansaldo Breda – the transport segment of the Finmeccanica group, one of Italy's largest industrial corporations. The new rail rapid transit system will run alongside Honolulu's 32-kilometer long main arterial road, which is being stretched to the limit with current levels of automobile traffic. Technology highlights – examples Protection technology:SIPROTEC 5 M3 market technology

20. Changing energy system requires new solutions Renewable and distributed generation Limited generation and grid capacity Aging and/or weak infrastructure Cost and emissions of energy supply Revenue losses, e.g. non-technical losses Challenges in changing energy systems  Smart Grid Solutions   Balancing generation & demand, new business models        Load management & peak avoidance    Reliability through automatic outage prevention and restoration      Efficient generation, transmission, distribution & consumption       Full transparency on distribution level and automated loss prevention       

21. Q4 Q3 Q1 Q2 FY 2012 Infrastructure & Cities Sector Building Technologies Division Division profile New orders / innovations in Q4 The Building Technologies Division (BT) is the world's leading provider of solutions for safe, secure and energy efficient buildings (green buildings) and building infrastructures. As a service provider, systems integrator and product supplier, the division offers systems for building automation, climate control, fire safety and security. The Real Estate Asset Management of Credit Suisse – one of the largest building owners and contractors in Switzerland – has appointed IC and Wincasa to review and optimize the portfolios of their real estate investment products, containing approximately 1,000 buildings. The objective of the five-year plan is to systematically reduce the consumption and the CO2 emissions and to save a minimum of 10 percent of CO2 in average. This amount is equivalent to approximately 13,000 tons of CO2. Technology highlights – examples SiveillanceSecuritySolution BuildingAutomationSystems

22. Building Technologies: Smart buildings play a crucial role in smart grids and energy efficiency Buildings consume 40% ofworld-wide energy ... ... and account for 21% of CO2 emissions Industry(direct emissions primary energy usage) Industry(indirect emissions power usage) Buildings(indirectemissionspower usage) • 11% • Mobility28% • 13% • 22% • Buildings41% Buildings(direct emissions primary energy usage) • 8% • 14% • 14% Trans-portation Forestry • Industry31% • 18% Agriculture/ waste

23. The IC top management agenda Strategies to grow beyond • Definition of portfolio and products, solutions and service offerings for targeted growth markets • Boost entry-level products • Increase share for Vertical IT and software-based business and intelligent infrastructure solutions • Focused capital allocation and portfolio expansion II I Effectivego-to-market City market Infrastructure markets • Strengthening of our sales approach • Infrastructure customers addressed by respective lead Division Profita-bility ofcorebusiness • Flawless order backlog execution • Rigid working capital management • Excellence in procurement, increase of global value sourcing • Contain SG&A costs and leanprocesses • Global focus on people development and recruiting III

24. Effective go-to-market and new markets • Strategies to grow beyond I • Effective go-to-market II • Profitability • of core business III The three pillars of the IC top management agendaOur midterm aspirations Midterm aspirations Reachlevelsof our target marginrange Ensurehigh ROCEof current operations Outgrow market Increase revenue share from emerging markets

25. Fastest growingsegments • Sustainable margins • Good starting position relative to competitors due breadth and depth of IC sector portfolio and existing customer base ü ü ü + We have defined strategies for IC growth markets that cater to our strengths IC value proposition Identification of IC growth markets … Our midterm growth aspiration • Specific domain knowledge required, e.g. security needs and processes at airport • Customer value from integration of different crafts (also cross-divisional), e.g. energy reductionin data centers from integrated LV/HVAC system • One face to the customer in jointsales approach • Data centers • Airports • Rail infra-structure • Smart Buildings in Smart Grids • Shape new market for BT & SG • Leverage of vertical IT to bolster growth in IC markets

26. 300 200 In pipeline In market 100 Our focus on emerging markets: SMART is rolling out at a more rapid pace – IC has a share of one third Share of global GDP Siemens SMART products  Examples from IC # of products >160 CerberusECOFire AlarmSystem In USD tr • 133 • Rest of Emerging(168 countries) • Fire detection system from China rolled out in Emerging Market • More than 500K detectors sold since market launch FY09 • “Second Wave”(6 countries) • ME (16 countries) • BRIC (4 countries)  NXAirSMedium VoltageSwitchgear IC • Developed based on domestic requirements in China and India • German engineering and cost effective solution • Developed (32 countries)  2005 2008 Today • 2030

27. Our>60 City Account Managers and our CoCs help cities to achieve their targets CoC CoC CoC Internal comparison: Growth and profit margin pose major challenges The IC account management consists of • Supported by Centers of Competence (CoC) for Cities in London, US and China focusing on: • Urban development • Major projects & account management • Marketing and communications • Over 60 City Account Managers • 8 Corporate Account Managers • 5 Global Account Managers • Almost 200 Regional Account Managers in 14 clusters planned

28. SFS is a reliable financing and risk management partner for the IC business and their customers, especially in times when financing of investments becomes increasingly important and financing can enable new business models By combining financial with industrial logic the IC Sector can provide an easier customer interface SFS contributes the Siemens growth initiatives by focusing on the same Sectors and key regions as the operating units – this further strengthens customer relationships for IC SFS strongly supports further implementation of the IC strategy Financing activities in the IC sector CurrencyManagement Projectfinancing Public privatepartnerships Commercial Finance Insurance Guarantees

29. 3 SFS project highlights for Infrastructure & Cities Metro Line Santo Domingo For the second metro line in Santo Domingo, SFS has put together a multisource financing package totaling more than EUR 133 million. Taking a cross-consortium approach, SFS coordinated the financing structure, the negotiations with the banks, the guarantee concept and the financial close. Working on behalf of a consortium comprising French and Dominican companies, Siemens was awarded the contract. ICx SFS strongly supported the IC Sector to secure one of the biggest orders in the history of Siemens – the framework agreement for ICx trains with Deutsche Bahn. The volume for the first planned 220 trains amounts to EUR 6 billion. SFS intensively advised the Sector on the construction financing, developed and assessed various alternatives with regard to price, accounting treatment, tender process and risks. Florida Institute of Technology Building Technologies supplied an energy-conversion solution to meet the needs of the FloridaInstitute of Technology (FIT). Siemens Financial Services was able to fund the $USD 10 million project for FIT. The annual energy and utility savings generated by the new equipment will exceed the annual cost to finance the entire project. For FIT, the project will pay for itself over the 10 -year financing term. Beijing Chaoyang District Siemens signed a strategic partnership with Beijing Chaoyang District Government to promote energy saving and emission reduction in public buildings and other relevant sectors in the District. Through a lease financing solution and guaranteed energy savings, the IC Sector will help the District Government to improve the energy and operational efficiency without the burden of high initial capital expenditure.

30. Global presence – basis for competitiveness Headquarters (Division) Production Site(>30 employees) Major R&D Facility (>30 employees) LMV RL BT SG MOL

31. London is a successful proof point of our approach Example for successful cooperation in London • Interurban mobility: 1,200 vehicles for regional trains • Automated video surveillance: Comprehensive CCTV services to improve community safety • Hybrid Buses: Consume ~40% less fuel and emissions • Toll System: City congestion charging system and enforcement of low-emission zone • E-mobility project: Supply of software solutions, related services and charging stations • Smart Grid: Collaboration with UK Power Networks to develop a power distribution concept for 2020 Siemens and London –a close partnership • We started working intensively with London in 2007 • City Account Manager installed to drive early engagement and representing our entire portfolio • We offer the specific domain know-how

32. In Shanghai we have successfully implementedour approach in a fast growing market Example for successful cooperation in Shanghai • Metro: Switchgear systems for 5 metro lines, propulsion system for 138 cars of Metro Line 11 South expansion • Green building solutions for Shanghai International Cancer Hospital • Building Energy Saving and energy consumption monitoring systems for 4 big hospitals • Smart Grid: Strategic cooperation agreement with Shanghai government of new technologies • E-Mobility: Delivery and installation of 144 charging stations for e-cars in the city • City Account Manager established in September 2010 • Close cooperation with Shanghai government and authorities • Participation in the study of Low-Carbon development of Hongqiao Business District

33. Our vision and our values Siemens – the pioneer in Our values Responsible Committed to ethical andresponsible actions Energy efficiency Industrial productivity Excellent Achieving high performance and excellent results Affordable and personalized healthcare Innovative Being innovative to createsustainable value Intelligent infrastructure solutions