Presentation: "Siemens Vision 2020 – Focus on profitable growth" (Bank of America Merrill Lynch Global Industrials & EU Autos Conference)

Dr. Ralf P. Thomas, CFO

Bank of America Merrill Lynch Conference, London, March 22, 2017

Unrestricted © Siemens AG 2017

siemens.com

This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens' management, of which many are beyond Siemens' control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Risks in the Annual Report. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

This document includes - in IFRS not clearly defined - supplemental financial measures that are or may be non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens' net assets and financial positions or results of operations as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures may calculate them differently.

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Value

Strengthen core

• Stringent capital allocation

  Scale up

• Innovation initiative

• Customer and market focus

• Digitalization at work

  Drive performance

  • Cost reduction support functions (€1bn)

  • Stringent project execution

  • Fix underperforming businesses

    Ownership culture drives high performance team

    2015 2016 2017 2018 2019 2020

    Strategic

    direction

    Operational

    consolidation

    Optimization Accelerated growth

    and outperformance

    Stringent execution of Siemens Vision 2020 delivers results

    Gross margin improvement

    Egypt megaproject on track

    28.6%

    FY 2014

    +130bps 28.9%

    FY 2015

    29.9%

    FY 2016

    31.4%

    Q1 FY 2017

    • June 2015: Signing of contracts for megaproject

    • January 2017: Siemens overdelivers on promise - first 4.8 GW of new capacity connected to the grid

    • Until May 2018: 14.4 GW in combined cycle connected to grid

    Execution of €1bn cost savings

    €1.0bn

    Significant net project charges reduction

    Industrial Business, in € bn

    1.2

    €400m

    0.2 No negative

    net effect

    0.7

    FY 2015

    FY 2016

    FY 2012

    Ø 2007-2014

    FY 2015

    FY 2016 &

    Q1 FY 2017

    Executing Vision 2020 Underperforming businesses on clear improvement trajectory

    Profit

    Margin

    -4%

    -3%

    +1%

    +3%

    ~6%

    >8%

    Footprint adjustments ongoing

    Sharpened scope

    In 6% range

    ~15%

    Under special

    management attention

    FY 2017 Priorities:

    • Clear accountability and tight monitoring

    • Rigorous execution of business plans with focus on sustainable competitiveness; e. g. set up of Mechanical Drives business as standalone company within Siemens

    • Partnering and divestitures remain an option

    Underperforming businesses (~€14.5bn revenue in FY 2016)

    Fiscal

    Year

    2013

    2014

    2015

    2016

    2017e

    2020e

    Fiscal 2017 expectations:

    ~85%

    Executing Vision 2020 - Strengthening of portfolio continues along our strategic imperatives

    April 16

    January 16

    Closing of acquisition

    Wind Power +

    Merger announced

    1| Areas of growth? Closing of divestment to AtoS

    2| Potential profit pool?

    January 16

    3| Why Siemens?

    Closing divestment of remaining

    Siemens 59% / Gamesa 41%

    4| Synergetic value?

    assets to EQT

    5| Paradigm shifts?

    Acquisition announced; EV of US$4.5bn

    December 16

    Closing date

    Listing preparation announced

    50/50 joint venture closed

    Executing Vision 2020 Early focus on digitalization drives value and growth

    Digitalization

     Leader

    Revenue FY 2016

    ~+8%

    Siemens software ~€3.3bn		Digital services ~€1.0bn
    Cloud data platf	o	rm: MindSphere

    Market CAGR FY17-20

    +3-4%

    +12%1)

    Strategic direction

    Strengthen leadership by combining software, platforms & services

    Automation

     Global #1

    Electrifi- cation

     Leader

    Enhanced automation

    ~€18bn

    Classic services

    Enhanced electrification

    ~€42bn

    +1-2%

    ~€17bn

    Expand #1 position and utilize for digitalization

    Differentiate through enhanced offerings with automation & digitalization

    Note: Figures based on Industrial Business 1) Growth FY15 to FY16, rebased

    Improved short cycle sentiment supports growth ambition in a difficult geopolitical environment

    Improved sentiment in manufacturing

    Macroeconomic environment

    PMI Manufacturing

    60

    55

    50

    45

    2014 2015 2016 2017

    Sources: Markit, ISM

    Eurozone China

    US

    • Moderate growth driven by construction and consumption

      • Fiscal stimulus and infrastructure investment as potential mid-term positive, however uncertainty around political framework

    • Weak Euro continues to support export industry, modest but steady recovery helped by consumption and higher employment

    • Uncertainty around Brexit and future EU development remains

    115

    110

    105

    100

    95

    90

    Ifo Manufacturing Germany

    2014 2015 2016 2017

    Sources: Ifo, Germany

    Climate Situation Expectation

• Ongoing economic rebalancing weighs on growth in heavy industries

• Consumption & Automotive support strong short cycle growth

• Stabilizing demand from raw material exporting emerging countries, bottoming in Brazil & Russia after strong decline

• India reform agenda supports infrastructure investments - strongest GDP-growth of all BRIC >7%

Dividend development

1)

48%1)

60%

57%

50%

52%

50%

30%

46%

€2.70

42%

€3.00

€3.00

40%

€5.402)

€3.00

€3.30

38%

€3.50

+3%

€3.60

FY 2010

FY 2011

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

Dividend per share Dividend payout ratio

Second endowment to Siemens Profit Sharing Pool of €100m

Ongoing share buyback execution of up to €3bn over up to 36 months (until November 2018)

1. Adjusted for exceptional non-cash items: 2010: impairments at DX; 2012: impairments at Solar and NSN restructuring

2. Effect of OSRAM stock distribution to shareholders of €2.40 per share; not reflected in dividend payout ratio

Siemens

One Siemens Financial Framework

Growth:

Siemens > most relevant competitors1)

(Comparable revenue growth)

Capital efficiency

(ROCE2))

15 - 20%

Total cost productivity3) 3 - 5% p.a.

Capital structure

(Industrial net debt/EBITDA)

up to 1.0x

Dividend payout ratio 40 - 60%4)

Profit Margin ranges of businesses (excl. PPA)5)

PG

11 - 15%

EM

7 - 10%

MO 6 - 9%

PD

8 - 12%

SFS6) 15 - 20%

WP

5 - 8%

BT

8 - 11%

DF

14 - 20%

HC

15 - 19%

1. ABB, GE, Rockwell, Schneider, Toshiba, weighted; 2) Based on continuing and discontinued operations; 3) Productivity measures divided by functional costs (cost of sales, R&D, SG&A expenses) of the group; 4) Of net income excluding exceptional non-cash items; 5) Excl. acquisition related amortization on intangibles; 6) SFS based on return on equity after tax

   Electrification - Automation - Digitalization: a strong and complete offering for our customers

   Design &

   engineering

   Automation &

   operation

   Maintenance &

   services

   Siemens Software

   Navigator based Services

   Siemens Digital Services

   Operations

   • Simatic IT

   • Siveillance, ...

   Railigent	Guardian Program
   	...

   Design & Simulation

   • NX, LMS, CD-adapco

   • Comos, Tecnomatix

   • PSS grid simulation, ...

   FlexLTP

   - Energy IP

   MindSphere - the IoT operating system

   Sinalytics Apps

   Digitally enhanced Electrification and Automation

   Spectrum Power, Desigo CC, Controlguide OCS, SIMATIC, PCS7, Sinumerik, ...

   Siemens will be the first provider of a fully integrated Digital Enterprise Suite

   Acquisitions 2007

   2012

   2016

   announced

   Cooperation 2016

   Bringing together the virtual world of product development

   (mechanical) with the real world of production automation

   Integrating 3D simulation and test to create the digital twin of products to predict performance

   Simulating all the physics (e.g. fluid design) for a more precise

   "Digital Twin" of products

   Creating the "System of Systems" view of the Digital Enterprise

   with Electronic Design Automation and Embedded Software

   Complementing 3D-modelling Software for planning, construction

   and operation of infrastructure facilities

   Mentor Graphics will significantly increase our Siemens Software revenue

   • Leading provider and pioneer of EDA

   • Product portfolio for electronics design software addresses all levels from components to systems

   • Large, diverse customer base of systems and IC/semiconductors companies with ~14,000 accounts

   • Established 1981, HQ in Wilsonville, US

   • Nasdaq listed

   • Mentor Graphics Key figures FY16

     Revenue Split

     • Revenue: $1.2bn

   Company description

   Transaction structure

   • Acquisition of 100% of Mentor Graphics shares outstanding

   • Offer price of $37.25 per share; 21% premium to Nov 11, 2016 close

   • Enterprise Value $4.5bn (~€4.2bn)

   • Revenue multiple2 3.5x; EBITDA multiple2 14.5x

   • Friendly transaction

   • EPS accretive in year 3 post-closing

   • Synergies of > €100m in year 4 post-closing

   • Expected Closing Q3 FY17 (subject to Mentor Graphics shareholder approval and regulatory approvals)

   • EBIT margin adjusted1: 20%

   41%

   Services &

   Support

   • Employees: ~5,700

   59%

   System and

   Software

   Mentor Graphics FY16 ended 31-Jan-16; EUR/USD 1.09; (1) Mentor Graphics non-GAAP operating income as disclosed in SEC filings (2) based on FY18 Factset consensus

   Perfect fit to expand our leadership in the Digital Enterprise

   Vision 2020 Rationale for acquiring Mentor Graphics

   Area of growth

   • Fast growing EDA segment: CAGR 7.3% until 2020

   • Unique combination of Electrical Design Automation software (EDA) and PLM accelerate growth opportunities across multiple industries

     Potential profit pool

   • Software-typical double-digit margin profile

     Why Siemens

   • Siemens will be the first company to provide a fully integrated design suite in PLM

   • Offering mechanical, electrical and software design capabilities on a single integrated platform

     Synergetic value

   • Offering a unique suite of integrated multi-domain capabilities across Siemens and

     Mentor Graphics customer segments

   • Savings from G&A and aligned go-to-market & R&D

     Paradigm shifts

   • Increasingly complex product design and seamless design adjustments of multi-functional products

   • Unique customer value through simultaneous mechatronics design and engineering

across all domains

Developed by Siemens, OEMs,

end customers and App developers

Optimized performance of assets, energy and resource consumption, maintenance, services …

Various cloud infrastructures: Public, private or on-premise

Secure plug and play connection of Siemens products

MindSphere

Transaction description & rationale

Key figures (pro forma, LTM Dec 2016)

(Due to rounding, numbers may not add up precisely and percentages may not precisely reflect absolute figures)

• Merger of the entire Siemens Wind business incl. Service with

  Gamesa to create a leading wind player

• Combination of two major, highly complementary global wind players with a well balanced geographic footprint

• Ownership:

  • Siemens 59%, Iberdrola ~8%, free float ~33%

• Global HQ and listing in Spain

• Siemens to fully consolidate the combined and listed entity

• Key achievements since deal announcement:

  • Gamesa shareholder approval obtained in Extraordinary General Meeting with 99.75% of votes

  • Spanish Stock Market Regulator CNMV granted waiver from mandatory offer

  • Unconditional Antitrust approvals received

• Closing expected early April, 2017

Unrestricted © Siemens AG 2017

1. Excluding transaction adjustments (e.g. effects from purchase accounting)

2. Incl. Adwen

3. EBIT adjusted for normalization items (-€6m) and stand-alone effects (+€121m), excluding synergies

   Siemens Healthineers: From Good - to Great - to Fascinating

   Leading position in key markets and resilient performance Distinct trends at work

   Profit margin

   CAGR

   (FX comp.)

   13.2%

   +4ppts

   +2.9%

   17.2%

   Transformation of Healthcare providers continues:

   Providers today seek relevant suppliers/partners

   Revenue

   in €bn

   Free cash flow

   in €bn

   11.1

   1.8

   +21%

   13.5

   2.2

   Industrialization Consolidation Health management

   • that understand challenges in a changing Healthcare market and

   • are able to address broad

issues in multi-hospital

provider systems

FY 20111) FY 2016

1. FY2011 financials excluding Audiology and Hospital Information Systems business

   Growth fields: We will further strengthen our attractive business

   Molecular Diagnostics Advanced TherapiesServices

   Build up molecular diagnostics portfolio utilizing our global presence and strong customer partnerships

   Grow rapidly into therapy: build upon our expertise in hybrid ORs and core imaging

   Build new services portfolio to solve system wide hospital challenges incl. clinical data analytics capabilities

   Strengthen our leading position by preparing listing of Siemens Healthineers

   Transformation in the healthcare market continues…

   … listing best suited to manage transition

   • Strengthen and build position in identified growth fields

   • High strategic flexibility and capital allocation in light of changing healthcare market

   • Focus on key success factors continues

   STRENGTHEN THE HEALTHINEERS BUSINESS

   IN SIEMENS

   • Paradigm shifts visible: Transition from

   • product business to solving hospital system wide challenges

   • fee for service to managing outcome based health

   • Race for customer relevance intensified

   • Competitor & provider consolidation ongoing

   • Investments required to respond to paradigm shifts

     Guidance FY 2017

     EPS ("all-in") Guidance

     in €

     7.20 - 7.70

     We anticipate increasing headwinds for macroeconomic growth and investment sentiment in our markets due to the complex geopolitical environment.

     6.80 - 7.20

     6.74

     Therefore, we continue to expect modest growth in revenue, net of effects from currency translation and portfolio transactions. We further continue to anticipate that orders will exceed revenue for a book-to-bill ratio above 1.

     After a strong start into the fiscal year, we raise our previous expectation for profit and EPS for fiscal 2017. We raise our previous expectation for the profit margin of our Industrial Business in the range of 10.5% to 11.5% to the range of 11.0% to 12.0%.

     Furthermore, we raise our previous expectation for basic EPS from net income in the range of €6.80 to €7.20 to the range of €7.20 to €7.70.

     This outlook assumes continuing stabilization in the market environment

     FY 2016

     FY 2017e FY 2017e

     as of as of

     Q4 FY 16 Q1 FY 17

     for our high-margin short-cycle businesses.

     It further excludes charges related to legal and regulatory matters as well as potential burdens associated with pending portfolio matters.

     Note: FY 2016 weighted average number of shares of 809m

     PG: Stringent execution, however market remains tough WP: Excellent performance ahead of planned merger

     Orders

     Revenue

     Power and Gas (PG)

     Wind Power and Renewables (WP)

     Orders Revenue

     €bn

     €bn

     -40%1)

     +7%1)

     5.5

     3.3

     3.7

     3.9

     -24%1)

     1.9 1.4

     1.2

     +18%1)

     1.4

     Q1 FY 16

     Q1 FY 17

     Q1 FY 16

     Q1 FY 17

     Q1 FY 16

     Q1 FY 17

     Q1 FY 16

     Q1 FY 17

     Profit

     Profit margin

     Profit

     €m

     +31%

     +230bps

     11-15%

     11.8%

     €m +119%

     458

     9.5%

     349

     51

     111

     Profit margin

     +380bps

     4.2%
     4.3%		8.1%

     8.0%

     5-8%

     10.4%

     11.9%

     Q1 FY 16

     Q1 FY 17

     Q1 FY 16

     Q1 FY 17

     Q1 FY 16

     Q1 FY 17

     Q1 FY 16 Q1 FY 17

     • Orders down on tough comps

     • Revenue driven by strong backlog conversion

     • Stringent project execution & strong service contribution

     • Lower volume from large orders

     • Productivity and operational excellence drive margin

2. Comparable, i.e. adjusted for currency translation and portfolio effects x.x%: Margin excl. severance (and excl. integration cost D-R for PG only)

   EM: Consistent improvement continues BT: Outstanding performance across all metrics

   Energy Management (EM)

   3.0

   2.8

   2.8

   183

   189

   7-10%

   6.6%

   6.7%

   1.5

   1.7

   1.5

   1.6

   10.9%

   131

   170

   8.9%

   Building Technologies (BT)

   Orders

   Revenue

   Orders

   Revenue

   €bn

   €bn

   -14%1)

   +3%1)

   +11%1)

   3.5

   +5%1)

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Profit

   Profit margin

   Profit

   Profit margin

   €m

   +3%

   +10bps

   €m

   +29%

   +200bps

   8-11%

   6.6%

   7.2%

   8.9%

   11.2%

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   • Double digit revenue growth in Asia, Australia

   • Higher profit in majority of businesses led by High Voltage Products and Transmission Solutions

   • Strong order growth across all regions

   • Profit driven by revenue growth and productivity gains

   DF: Excellence across all businesses, short cycle a key driver PD: Realignment continues

   Digital Factory (DF)

   668

   14-20%

   26.1%

   417

   16.9%

   17.2%

   26.3%

   €m

   +7%

   126

   135

   +70bps

   8-12%

   5.7% 6.4%

   6.1% 6.7%

   Process Industries and Drives (PD)

   Orders

   Revenue

   Orders

   Revenue

   €bn

   €bn

   +7%1)

   +4%1)

   -6%1)

   -3%1)

   2.5

   2.7

   2.5

   2.6

   2.3

   2.1

   2.2

   2.1

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Profit

   Profit margin

   Profit

   Profit margin

   €m

   +60%

   eCar gain

   €172m (670bps)

   +920bps

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   • Broad based order and revenue growth with particular

     strength in China

   • High margin short cycle businesses drive margin

   • Ongoing weak demand in commodity related industries,

     strong demand for wind power components

   • Continued execution of structural measures

   MO: Stringent execution drives best in class margins HC: Excellent top and bottom line performance

   Mobility (MO)

   193

   6-9%

   163

   9.4%

   9.1%

   541

   620

   16.5%

   15-19%

   18.9%

   Healthineers (HC)

   Orders

   Revenue

   Orders

   Revenue

   €bn

   €bn

   -17%1)

   -8%1)

   +4%1)

   +0%1)

   2.7

   2.2

   2.0

   1.8

   3.4

   3.5

   3.3

   3.3

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Profit

   Profit margin

   Profit

   Profit margin

   €m

   -15%

   -30bps

   €m

   +15%

   +240bps

   9.6%

   9.3%

   16.8%

   19.2%

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   Q1 FY 16

   Q1 FY 17

   • Book-to-bill clearly above 1 despite lower large orders

   • Revenue decline due to timing factors of large projects

   • Solid execution on high profitability

   • Clear order growth in Asia, Australia, particularly China

   • Broad based profitability improvement

   CMPA with profit of €0.4bn, high volatility as expected

   Below Industrial Business - Q1 FY 2017

   in €m

   Expectations for FY 2017 unchanged

   • SFS: "operationally" in line with FY 2016

   • CMPA: includes other portfolio elements; volatility remains in

     FY 2017

   • SRE: in line with prior year, dependent on disposal gains

   • Corporate Items: ~€150m per quarter on higher central innovation invest; H2>H1

   • Pension: ~€125m per quarter

   • PPA: in line with FY 2016

   • Elimination, Corporate Treasury, Other: in line with FY 2016

   • Tax: expect 26 - 30%

   • Discontinued Operations: immaterial

   409 72

   2,514

   140

   -183

   -168

   -142

   Therein:

   • €99m Pensions

   • €85m Corp. Items

   -714

   1,927

   12 1,938

   Including effects related to:

   • asset retirement obligation (interest)

   • reversal of provisions related to a former divestment

   Tax rate

   @27%

   IB	SFS	CMPA SRE	Corp.	PPA	Elim.	Tax	Inc.	Disc.	Net
   Items	Corp.	Cont.	Ops.	Income

   & Pen.

   Treas., Other

   Ops

   all in

   Net debt bridge - Q1 FY 2017

   • SFS Debt

   • Post emp. Benefits

   • Credit guarantees

   • Fair value adj. (hedge accounting)

   Q1

   +23.1

   -11.1

   -0.8

   +0.6

   ΔQ4

   +0.7

   +2.6

   +0.0

   +0.0

   Adj. ind. Net Debt/ EBITDA (c/o)

   0.7x

   (Q4 FY16: 1.0x)

   €bn

   Operating Activities

   therein:

   • Δ Inventories -0.3

   • Δ Trade and other receivables +0.2

   • Δ Trade payables -0.7

   • Δ Billings in excess +0.4

   -8.0

   therein a.o.:

   • CAPEX

   -0.4

   -19.1

   Net Debt Q4 2016

   Cash & cash equiv.

   €11.91)

   1.5

   Cash flows from op. activities

   (w/o ∆ working capital)

   -0.4

   ∆ Working Capital

   -0.3

   Cash flows from investing activities

   -1.5

   Financing and other topics

   -19.8

   Net Debt Q1 2017

   Cash & cash equiv.

   €10.81)

   11.8

   Net Debt adjustments

   Adj. ind. Net Debt Q1 2017

3. Including current available-for-sale financial assets

4. Financial calendar

   March

   March 22, 2017

   Bank of America Merrill Lynch Conference (London)

   March 27, 2017

   Siemens U.S. Innovation Day (Princeton)

   May

   May 4, 2017

   Q2 Earnings Release

   May 5, 2017

   Roadshow UK (London)

   May 8, 2017

   Roadshow Germany (Frankfurt)

   May 30, 2017

   Roadshow Canada (Toronto)

   June June 16, 2017

   JP Morgan Capital Goods Conference (London)

   Investor Relations contacts Investor Relations

   Internet:	www.siemens.com/investorrelations
   Email:	investorrelations@siemens.com
   IR-Hotline:	+49 89 636-32474
   Fax:	+49 89 636-32830