GEO Netherlands Chapter Event

GEO Netherlands Chapter Event

Siemens Equity Strategy

DRAFT

For internal use only / Copyright © Siemens AG 2013. All rights reserved.Page 2 CD EA - May 2013

Agenda

The Siemens Equity Strategy

Plan Design

Communication

Equity Culture Enhancement Project


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

Imaging & Therapy Systems

Clinical Products Diagnostics Customer Solutions

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

Energy Healthcare Industry Infrastructures & Cities

Financial Information

Employees: 86,000Revenue (in Mio. €): 27,500Income (in Mio. €): 2,200







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.


"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


The Siemens Equity Culture

Peter Löscher has laid the groundworkfor a living Equity Culture embedded in the overall company culture with the objective to:


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 thinkingTo

ne fr

om th

e To

p

Livi

ng th

e Eq

uity

Cul

ture

Equity Culture fosters employees to act as one Siemens. Local attractiveness is key success factor for living Equity Culture.

Living the Equity Culture


Tone from the Top

Act as One Siemens

GlobalCommunication

Equity asglobal brand

Local Communication

Equity as attractiveHR 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

CommitmentTop 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


Plan Design


Siemens’ Share Programs

Share Matching Plan CEO Special Allocation

Share Ownership Guidelines Performance Oriented Stock Awards


Share Matching Plan 2013Key Messages

148,000 Siemens employees are part of the Siemens equity culture Highlights Share Matching Plan 2013

Population and Country Scope Share Matching Plan 2013 – 107,000 elections

Over 107.000 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 2013.

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 2009.

+8%

+5%

Please note: all figures including OSRAM

380,000

2011(54 countries)

2012(59 countries)

380,000335,000

2009(7 countries)

2013(60 countries)

347,000

180,000

2010(40 countries)

2013

2012 137,000

2011 125,000

2010 115,000

2009

148,000

96,000

2013

2012 102,500

2011 99,000

2010 88,000

2009 96,000

107,000


Communication


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 stakeholdersInterviews with country CEOs/CFOs regarding Equity Culture and Equity Based Compensation

Local Management Communication Tone from the topKnowledge Transfer regarding compensation structure and Equity Based Compensation

Face-to-face meetings

Personalized Emails Outline attractive benefitIndividualized Email communication to all eligible employees in the respective country

Joint responsibility between GSP and local HR

External Local Communication Siemens as Employer of ChoiceArticles in different local newspapers (trade press)

Local conferences and congresses

Brochures Target-oriented and cost efficientProvision 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 CultureIndividual Emotions Trailer

Video Statement of local management

Direct / face to face communication methods Indirect / media driven communication methods

Banners Target-oriented and cost efficientProvision of individual brochures, posters and banners adjusted to the local requirements (content, key visuals etc)


Posters Target-oriented and cost efficientProvision of individual brochures, posters and banners adjusted to the local requirements (content, key visuals etc)



Global Equity Culture Communication ToolboxDirect 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

CEO/CFO InterviewsBuy in of major stakeholders


The global Equity Culture Communication Toolbox shows two different communication approaches.

Global Equity Culture Communication ToolboxIndirect Communication

Personalized EmailsOutline attractive benefit

External Local CommunicationSiemens as Employer of Choice

BrochuresTarget-oriented and cost efficient

TrailersSpread the vision of the local Equity Culture

BannersTarget-oriented and cost efficient

PostersTarget-oriented and cost efficient

Indirect communication


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

MusicEmotional music that transports the message of being proud to own a part of Siemens by being a shareholder

MotivesSiemens 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.





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 Cultureis local and target group orientedsupports the global brandingis cost efficient and effective

Localized Communication in Pilotcountries, e.g.:Country CEO Video StatementRoad ShowsLocalized Poster and Roll UpsEmployee Survey

Project Target Measures

Project Setup

6 Pilotcountries were selected with three different communication approaches of intensity

Module 1Low intense

communication

Module 2Medium intense communication

Module 3High intense communication

Res

ult 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

Mexico

Malaysia Singapore

Czech Republic


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 attitude Influence on process design

Comparison first and second survey Influence on communication


" 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

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GEO Netherlands Chapter Event