Siemens Building Technologies · Page 5 Capital Market Days 2007 Where we come from – and our plan we presented to you last year 0.2 0.3 4.2 FY 2004 4.4 FY 2005 FY 2007 5.0 FY 2003

Heinrich Hiesinger, Member of the CECJohannes Milde, Group President

Capital Market Days 2007June 21-22, Berlin

Siemens Building Technologies –

Page 1 Capital Market Days 2007

Disclaimer

This presentation contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words as “expects”, ”looks forward to”, “anticipates,” “intends,” “plans,”“believes,” “seeks,” “estimates,” “will” or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect its operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens worldwide to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from: changes in general economic and business conditions (including margin developments in major business areas); the challenges of integrating major acquisitions and implementing joint ventures and other significant portfolio measures; changes in currency exchange rates and interest rates; introduction of competing products or technologies by other companies; lack of acceptance of new products or services by customers targeted by Siemens worldwide; changes in business strategy; the outcome of pending investigations and legal proceedings; our analysis of the potential impact of such matters on our financial statements; as well as various other factors. More detailed information about our risk factors is contained in Siemens’ filings with the SEC, which are available on the Siemens website, www.siemens.com and on the SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed sought, estimated or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.


SBT – Our scope

Building Comfort Electronic SecurityFire Safety

Comfort, energy savingand building efficiency

HVAC controlsValves, actuatorsEnergy services and solutions

Protecting people,assets and processes

Access controlVideo surveillanceIntrusion protectionCentral monitoringstations

Protecting life and property

Fire detectionExtinguishingEvacuation


SBT – Our key figures

Sales (€ bn)

Fiscal Year 2006

Employees

Market position

BuildingComfort Total SBT

~2.3 4.8

12,900

No. 2

Fire Safety

~1.5

9,900

No. 1

ElectronicSecurity

~1.0

4,800

Top 5

28,600


Security drives SBT market development

CAGR: Compound Annual Growth Rate

2006 - 2008 growth driven by:All business fields in Americas and Asia / PacificSecurity in Europe

2006 - 2008 growth in all business fields: Highest growth rates in SecurityModerate growth in Fire Safety and Building Comfort

3

35

2825

2006

40

18 20

3

80

2008

Europe

Americas

Asia / PacificOther

5%

8%

7%CAGR

7%

14

2220

80

2006

13

4755

91

2008

ElectronicSecurity

Fire SafetyBuilding Comfort 5%

8%

CAGR

3%

in € bn in € bn917%


Where we come from –and our plan we presented to you last year

0.20.3 4.2

FY 2004

4.4

FY 2005 FY 2007

5.0

FY 2003

0.3+4%

Growth aboveMarket

Divestment Facility-management

Project SelectionCriteria, Currency

Exit ElectricalProject Business

AchieveTarget Margin

Portfolio Clean-upStrategic Alignment

Operational ExcellenceGain Growth Momentum

Maintain GrowthStrengthen PortfolioReach Target Margin

in € bn


The road to success is ...

... sustainable improvements on 4 levers

Additional strong focus on asset management ANDstrong cash generation

Target margin

4.1%~5%

7.0%

2005 2006 2007

Focus and performanceof solutions business Optimized business mix

Capacity and competence of employees

Competitive cost position

1

3

4 2


Continuous learning is key in order to respond to changes in thebusiness environment and to grow profitably

Siemens Learning Campus

Management & Leadership

Individual Development

Intercultural Management

Strategic Marketing

SBT Academy & Training on the Job

SBT specific training content

Applications

Project Management

Branch Management

Quality Management

SBT Products

SBT is a people's business and ~80% of project value is added in the Regions

SBT adds industry specific training modules addressing employees in HQ and in regions

Boost individual, organizational, strategy and market offering knowledge


Optimization of business mix shows first results

Strategic direction

High growth in Product and Service business, improved margin quality in Backlog

This we have achieved …

2.8

H1 06

2.9

H1 07

Large projects

Solutions

Service

Products

+2%New orders

+11%

+8%

+2%

Manage growth in solutions business towards stronger differentiation and high service potential

Maximize service business out of very large installed base

Accelerate growth in products business based on strong portfolioProducts

Service

Solutions

in € bn


Considerable step towards benchmark cost structure and improved performance of solutions business …

Profit development of Solution business

… are the main pillars of SBT’s target margin achievement

Solutions BusinessFY 05 FY06 FY07E

Project selectionStringent selection criteria

Project approval process

Process improvementPM@Siemens tool box

Strict controlling of margin slippage

Cost Structure (OpEx)Concentration of HQ in one location

Improved cost efficiency in regional organizations

Actions

Group Profit Margin

+3%pt


High market recognition of SBT‘s offering

«Best Energy Service Provider» European Parlament

«Security Excellence Award» Customers in UK

«Ifsec Innovation Award» Intrusion DetectorEyetec

«Reddot Innovation Award»Synco LivingWireless Home Automation


New orders 5,235 2,750

Sales 4,796 2,548

Group profit 234 172

Free Cash Flow 1 117

Employees 28,600 28,400

(in € m) FY 06 H1 07

SBT successfully cleaned up its portfolio and managed the turn-around

Q2 target margin achieved along with strong cash contribution

Profit margin & sales (in € bn)

5.04.2 4.4

4.8

2.0% 2.5%4.1%

4.9%

2003 2004 2005 2006 Q1 Q22007

US GAAP: 2003 – 2006IFRS : 2007

5.9%

7.5%

1.31.2


Focus on business mix and Solutions’ performance ...

... while improving the cash position

Focus and performanceof Solutions business Optimized business mix

Capacity and competence of employees

Competitive cost position

1

3

4 2Enhance value proposition Vertical Market solutions

Priorities to achieve the goals

PeopleExcellence Portfolio

CorporateResponsibility

OperationalExcellence

Develop talent globallyStrengthen leadership developmentAttain high performance cultureStrengthen expert careers

Execute SiemensManagement System(powered by top+)with focus on

InnovationCustomer FocusGlobal Competitiveness

Build on our strengths inEnergy & EnvironmentalCareAutomation & Control, Industrial & PublicInfrastructuresHealthcare

IPO of Siemens VDO

Achieve best-in-class in Corporate GovernanceComplianceClimate protectionCorporate Citizenship

PortfolioPeopleExcellence



PerformanceOptimize capital efficiency with ROCE of >14–16%Attain cash conversion rate of "1–growth rate"Sustain 2x GDP growthAchieve new margin ranges

Strong growth in Products/ServicesSelective growth in value markets

Target margin

7.0%9.0%

2007 2010


Working Capital

Profit & Cash

SBT will achieve Cash and ROCE targets

1.00.7

0.0

FY 04 FY 05 FY 06

0.7

H1 07

Cash Conversion Rate (CCR) SBT has set the grounds for improvement:

Return on Capital Employed (ROCE)

Improved cost structure and enhanced business portfolio

Implemented measures & processes on branch level to reduce Working Capital

Moderate Fixed Assets development

CCR &

ROCE

FY 04 FY 05 FY 06 H1 07








IPO of Siemens VDO







Future priorities for SBT

Energy Efficiency

Security Service

Total Building Solutions(TBS)

Consistent performance within target margin range

Growth opportunities…

A B

C D








IPO of Siemens VDO






… driven by innovation


Energy Efficiency – Impressive track record due to high customer value

SBT Energy & Environmental Services Creating customer value

Source: GDP team

Clinical Center Reinkenheide, Germany:Replacement of a competitor‘s Building Automation System and Service contractSolution encompasses: Building Management System and modern Heating, Ventilation and Air Conditioning SystemsReduction of energy cost of more than 40%Reduction of CO2-emission by 4,100 tons p.a.

182

FY04

238

FY05

261

FY06 FY07E

+31%+10%

>25%

Profit margin

Sales(in € m)

6% 8% 7% >7%

EUUSA Asia

A


SBT Energy & Environmental Services – Front-runner in Energy Services

Our performance in Energy Efficiency ...More than 1,300 energy projects realized globally since 1994Total energy savings of € ~1.5bn over a period of 10 yearsCO2 reduction of all energy projects: ~700,000 tons per year

… is excellent

SBT winner of the European Energy Service Award for:

'Best Provider 2006'

A


Demand for Energy Efficiency creates high growth potential for SBT

SBT will tap this large and fast growing potential in selected high value segments

Rising energy costs and stronger environmental focus

create new market opportunities

Environmental regulations and governmental programs

accelerate this trend

A

AdditionalSBT market potential of

€ ~20bn

Energy Consulting Services

Energy Supply Side Services

Energy Optimization Services

Green Building Solutions


Total Building Solutions (TBS) – SBT meets complex customer demandsB

Hotel Palafitte, Neuchâtel (CH)

All hotel services are fully integrated and delivered

through one single network and can be centrally supervised

and controlled

This € 4m Total Building Solution consists of:Building Management system Heating and Ventilation equipmentFire Safety and Security systemLow Voltage and Lighting systems Communication and Information infrastructure

Access Control

RemoteServices

Building Management ServerEthernet TCP/IP

Ventilation Heating Fire SafetyLighting & Blinds

Communication


Total Building Solutions (TBS) allow for competitive differentiation

Total Building Solutions go beyond today's SBT core portfolio andinclude lighting, blinds and low-voltage equipment

Together with A&D, I&S and other Siemens Groups, SBT has a unique market position in this fast growing segment

DESIGO

PowerDistribution

MV/LV

IntrusionDetection and Video

Surveillance

Fire / GasDetection,

Evacuation,Extin-

guishing

AccessControl& Identi-ficationSystems

Heating,Ventilating, Air Conditioning

HVAC

IntegratedControlRoom

Lightingand

Blinds

What are the customer benefits?

Full building management functionalityReduction of total lifecycle costsHigh flexibility (e.g. wireless connectivity, retrofit)Value-added services and improved functionalities

Our Total Building Solutions approach

Cross-discipline, intelligent automation nodeFlat hierarchy, open standardsEasy retrofit and migrations

B


2x market growth

Security is our growth engine – From € 700m to >€ 1,100m in 3 years

Focus on value segment solutions and services, e.g. Command & Control

C

Focus on video over IP and other differentiating technology

Security Solutions and Services

Security Products

~1,000

Services

FY 06

902+18%

FY 05

762

FY 04 FY 07E

606

Solutions

136

FY 04

124

FY 05

174

FY 06

~220

FY 07E

+17%

Sales (in € m)

Sales (in € m)


Security Solutions business will move beyond traditional “Protect” focusC

Source: GDP team

SBT will tap additional potential – supported by acquisitions

Prevent Protect Respond Recover

Prevent incident from happening

Generate alarm in case of incident

Deal with actual incident

Deduction of conse-quences from incident

Goal

Perimeter control (electronic fence)

Glass break sensor Security operation center

Evidence search in video data

Example

Share of security market ~15% ~50% ~35% ~1%

Market growth Above average

Below average

Above average

Above average

Future growth opportunitiesTraditional focus


Service Business - Future priority and growth opportunity

Leveraging existing customer base Additional Service offering

Example Kintec (acquired in 2006):

Remote monitoring, servicing of unmanned sitesTransfer concept to develop emerging markets such as Turkey, Brazil or PolandTransfer technology, know-how and business model to vertical markets that have a large number of remote unmanned technological sites

Vertical MarketTelecom

D

Market

Transparency

Demand for Energy Efficiency and Security opens customer base for Service offering

Traditional Services Value Added Services

grew by ~ 60,000 projects p.a. over the

last 20 yearsDemand

for Security ...

… and Energy

Efficiency

Installed Base


Advantage Services™ - Business and mindset

Customer satisfaction and loyalty are predicated on our quality of service

Service as a business

Service as a mindset and behavior

Comprehensive Service portfolio across all disciplines, including Maintenance, Operational Services, Energy Services and Customer TrainingFull lifecycle approach to optimize customer valueIntelligent system migration concepts

Short reaction times & 24/7 customer careDefined high quality standardsResponsiveness to customer needsUnderstanding customer processes and priorities

D


SBT’s growth plans are driven by innovative products

Reshuffling from portfolio streamlining to innovation

SBT is continuously increasing its investment in R&D

Examples of new products and systems launchedApogee – Wireless BAS

Energy Monitoring & Control

Sinteso – Fire Safety

Sistore – Digital Video

SiPass – Access Control

Desigo – Building Automation


Innovative applications at its best – Automated wide area surveillance

Interactive animated view of your site on a single screenVirtual fences (site-based alarm zones) set to security policyClassified object detection and tracking in real-time

Video camerasThermal camerasRadarGPSAccess controlRFID“Smart Fence”Bio-chemical

Sensor types

Object types

PedestriansVehiclesBoats / shipsAirplanes


SBT’s key take aways

SBT targets upper end of target range by 2010








IPO of Siemens VDO






SBT will grow above market growth, based on:Service potential in installed baseSecurity needsEnergy Efficiency

2004 - 2007

2008 - 2010

FY10FY07E

Further OPEX

reduction

Profitable growth in value markets based on innovation

7%

9%

SBT is successfully repositioned and reached target range

Focus on strong cash contribution


Building TechnologiesHigh value for our customers

Katy Stadium, Houston

We protect people and propertyWe protect families and kids against fire, theft and crime

We make people feel safe and comfortable at work and at home

While people are working or sleeping at night, we save energy and, helping preserve our environment


Reconciliations and definitions

”Group profit from Operations” is reconciled to ”Income before income taxes” of Operations under ”Reconciliation to financial statements” on the table ”Segment information.” See ”Financial Publications/Quarterly Reports, FY07 Q2, Financial Statements” at our Investor Relations website under www.siemens.com.

ROE (Return on equity) margin for SFS was calculated as SFS' income before income taxes divided by the allocated equity for SFS. Allocated equity for SFS for the financial year 2007 is € 1.041 billion.

The allocated equity for SFS is determined and influenced by the respective credit ratings of the rating agencies and by the expected size and quality of its portfolio of leasing and factoring assets and equity investments and is determined annually. This allocation is designed to cover the risks of the underlying business and is in line with common credit risk management standards in banking. The actual risk profile of the SFS portfolio is monitored and controlled monthly and is evaluated against the allocated equity.

Siemens ties a portion of its executive incentive compensation to achieving economic value added (EVA) targets. EVA measures the profitability of a business (using Group profit for the Operating Groups and income before income taxes for the Financing and Real estate businesses as a base) against the additional cost of capital used to run a business, (using Net capital employed for the Operating Groups and risk-adjusted equity for the Financing and Real estate businesses as a base). A positive EVA means that a business has earned more than its cost of capital, and is therefore defined as value-creating. A negative EVA means that a business is earning less than its cost of capital and is therefore defined as value-destroying. Other organizations that use EVA may define and calculate EVA differently.

To measure Siemens' achievement of the goal to grow twice the rate of global GDP we use GDP on real basis (i.e. excluding inflation and currency translation effects) with data provided by Global Insight Inc. and compare those growth rates with growth rates of our revenue (under IFRS). In accordance with IFRS, our revenue numbers are not adjusted by inflation and currency translation effects.


Siemens Investor Relations Team

Webpage: http://www.siemens.com/investorrelations

e-mail: [email protected]

Telephone: +49-89-636-32474

Fax: +49-89-636-32830

Marcus Desimoni +49-89-636-32445

Roland Bischofberger +49-89-636-36165

Florian Flossmann +49-89-636-34095

Irina Pchelova +49-89-636-33693

Christof Schwab +49-89-636-32677

Susanne Wölfinger +49-89-636-30639

Documents

Siemens Building Technologies · Page 5 Capital Market Days 2007 Where we come from – and our plan we presented to you last year 0.2 0.3 4.2 FY 2004 4.4 FY 2005 FY 2007 5.0 FY 2003