Siemens Healthcare – Focus and deliver...Page 2 February 28, 2008 Capital Market Day Siemens Healthcare Copyright © Siemens AG 2008. All rights reserved. This document contains

Page 1 February 28, 2008 Capital Market Day Siemens HealthcareCopyright © Siemens AG 2008. All rights reserved.


Siemens Healthcare – Focus and deliver Erich R. Reinhardt, CEO Healthcare

Capital Market Day Siemens Healthcare Munich, February 28, 2008



This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,”“estimates,” “will,” “project” 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 our operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed orimplied 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; changes in business strategy; the outcome of pending investigations and legal proceedings, especially the corruption investigation we are currently subject to in Germany, the United States and elsewhere; the potential impact of such investigations and proceedings on our ongoing business including our relationships with governments and other customers;the potential impact of such matters on our financial statements; as well as various other factors. More detailed information about certain of these factors is contained throughout this report and in our other 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.

EBITDA (adjusted), Return on capital employed, Free cash flow, Cash conversion and Net debt are Non-GAAP financial measures.A reconciliation of these amounts to the most directly comparable IFRS financial measures is available on our Investor Relationswebsite under www.siemens.com/ir, Financial Publications, Quarterly Reports. 'Group profit from operations' is reconciled to 'Income before income taxes' of Operations under 'Reconciliation to financial statements' in the table 'Segment Information'.

Safe Harbour Statement



What is on our mind?



What is on our mind?

Siemens Healthcare Sector Driving Profitable Growth

Munich, February 28, 2008Erich R. Reinhardt



Focus and Deliver

Driving profitable growth and cash returns

Getting the most out of the integrated diagnostics company

Achieving best-in-class cost position incl. SG&A reduction

Innovating for fast growth and competitiveness

+Drive organic growth above market growth

+

Deliver target margin

+

Convert to cash



Global organization aligned towards delivering financial results


+


+

Convert to cash

Target margin 2010: 16-19%



Siemens Healthcare

Diagnostics Imaging & IT Workflow & Solutions




We have built a strong track record in business performance

Margins increased despite dollar weakness and competitive environment through innovations.

Headline revenue progression held back by dollar depreciation (growing above market due to best workflow solutions)

Strategic portfolio expansion into IVD to form the world’s first Integrated Diagnostic CompanySignificant acquisition effects 2007 with Diagnostics: PPA and one-time costs

Productivity increase of ~ 8% p.a. on average

Highlights

Well balanced regional sales structure

USA41%

Europe34%

Others10%

Asia15%

Profit Margin(IFRS):

11.7%

2005

Sales €bn

20072006

8.2

12.0%

Healthcare sales & profit margin (reported)

13.2%*

15.0%**

* Excluding gain on sale in 10% stake in Dräger Medical (23)**Excluding PPA / one-time costs (OTCs) Diagnostics and gain on sale in 10% stake in Dräger Medical (23)

7.6

11.7

9.9

8.3

With Diagnostics pro-rata

With Diagnostics pro-forma

+5%+6%

Organicsales growth



Group Profit Target Margin

Profit Margin: 14 - 17%

Cash Conversion Rate

1 – growth rate

Organic growth above market growth

FY06 FY07

12.0%

FY06 FY07

0.901.04

15.0%1)

1) Excluding PPA and One Time Costs related to DPC, Bayer acquisition and gain on 10% stake in Dräger Medical (23)

FY06 FY07

5%6%

Market growth

We are committed to reach our goals



We hold #1 positions in each of our marketsand will leverage the strategically best position

#1 #1 #1

Workflow-oriented IT

Prevention and Early Detection

CareIn Vitro Diagnostics (IVD)

Diagnosis

TherapyIn Vivo Diagnostics (Imaging)

SiemensMcKCerner

GESiemensTosh.

SiemensGEPhilips

SiemensPhilipsGE

SiemensGEPhilips

GEPhilipsSiemens

Comput.Tomogr.

MagneticReson.

Angio &X-ray

Molecul.Imaging

Ultra-sound

Health-Care IT

Imaging & IT

SiemensRocheAbbott

IVD

Diagnostics

#1#2#3

Audio Oncol.Women‘sHealth

Workflow & Solutions

HologicGESiemens

SiemensDemantPhonak

VarianElektaSiemens

Urol-ogy

Sur-gery

SiemensDornierStorz

SiemensPhilipsGE


Trends in Healthcare determine our customers’ goals

TherapyPrevention and early Detection CareDiagnosis

Growing and agingpopulation

Emerging ruralhealthcare

Cost pressure/varyingreimbursements

Disease orientation

Patient education

Market trends … create demand and define …

Increased demand for healthcare services

Products for healthcare delivery in rural areas

Solutions that reduce overall cost and/or grow top-line

New applications and clinical pathways

Patient-centered offerings and processes

... our customers’ goals

Increase efficiency/ productivity

Ensure profitability

Guarantee high quality of care



Our customers’ goals are our goals

TherapyPrevention and early Detection CareDiagnosis


+Deliver target margin

+Convert to cash

To grow our business profitably

as preferred partner

we generate growth from workflowadvantages and clinical excellence

and turn best solutions into margin

high-quality and patient-centered care

along the healthcare continuum

with best processes

and with proven outcomes

Quality Costof healthcare delivery

We help our customers to provide:



Our customers’ success is based on improving workflow

Source: HealthImaging&IT, October 2007 (US market survey)

Top 10 priorities by facility type in 2007

Over 500 beds:

1. Improvingworkflow

2. Reimbursement

3. …

Hospitals in the United States Imaging centers

200–500 beds:

1. Reimbursement


3. …

< 200 beds:

1. Reimbursement

2. Increasing procedure volume


4. …

1. Increasing procedure volume


3. …

These institutions must become efficient along clinical, financial and operational dimensions



Growing our business as we solve our customers‘specific workflow needs best

How can I accept more patients on my schedule to compensate for reimbursement cuts?

Head of Radiology

How can I get an increasing number of tests done before the rounds?

Head of Laboratory

How can I get all my services correctly invoiced and in time to the payor?

CFO

How can I ensure that all clinicians practice within our defined clinical pathways consistently?

CMO

How can I reduce inpatient days at fixed reimbursement and get my accreditation level?

CEO



CareIn Vitro Diagnostics (IVD)

Diagnosis

TherapyIn Vivo Diagnostics (Imaging)



Early Detection has clear financial and clinical benefits

0%No cancer

% alive 15 yearsafter diagnosis

Treatment cost ($000)

Survival by stage of diagnosis; American Cancer Society

10%

20%

30%

40%

50%

60%

70%

80%

0

20

40

60

80

100

120

140

Stage 0 Stage I Stage II Stage III Stage IV

Early detection increases survival rate and reduces treatment cost

Example: Breast cancer



Siemens is the only diagnostics company offering a full portfolio

Physicalexamination

Genetic markerpanel

Mammography

Assay sensitive to protein expression

Mammography; sonography; breast MRI

Molecular imaging PET⋅CT, SPECT⋅CT

Molecular diagnosticsfor therapyselection

Resection, image-guided radiationtherapy, chemo-and/or hormon-therapy

Physicalexamination

DNA- and proteomic tumormarkers

I.e. imaging (e.g. liversonography)

In VitroDiagnostics(IVD)

Diagnosis

TherapyIn VivoDiagnostics(Imaging)


Care

Example: Breast cancer



The market requires workflow-oriented IT to reachhighest productivity, clinical and financial results


Quantitative result assessment of therapy outcome

Orchestrated financial and clinical patient data

Lab and radiology data for diagnosis and staging

Care guidance and follow-up orchestration


Diagnosis



Care



Our customers‘ decisions are both product and solution oriented



Diagnosis


Oncology

Cardiology

Neurology

…

Aut

omat

ion

Che

mis

try

Blo

od g

as

Imm

uno-

assa

y

… Mag

netic

Res

onan

ce

Com

pute

d To

mog

raph

y

Mol

ecul

ar Im

agin

g

Rad

iogr

aphy

/Ang

iogr

aphy

Ultr

asou

nd

Hea

lthca

re IT


Care



Organization designed to focus on all business opportunities

Che

mis

try

Blo

od g

as

Imm

uno-

assa

y

… Mag

netic

Res

onan

ce

Com

pute

d To

mog

raph

y

Mol

ecul

ar Im

agin

g

Rad

iogr

aphy

/Ang

iogr

aphy

Ultr

asou

nd

Hea

lthca

re IT

CFOKlaus Stegemann

DiagnosticsJim Reid-Anderson

Imaging & ITBernd Montag

Workflow & SolutionsTom Miller

Siemens HealthcareErich R. Reinhardt

Oncology

Cardiology

Neurology

…

Aut

omat

ion

Organization mirrors customer needs



Growing and well diversified market

(in € billions, currency adjusted)

31 32

55

2221

57 59

2007 2008

5-6%

5-6%

2-3%

Diagnostics

Imaging & IT

Workflow & Solutions

20083-4%

5-6%

6-7%

5-6%

2010



US Market: Temporary effect on current spending

DRA(1) currently slows down investments into new imaging systems

Conclusion for healthcare provider

Postponing capex

Cost reduction

Increasing # of patients to maintain top line (→ workflow)

US market likely to recover a year after elections(2)

US market currently weak Previous example: MRI in the 90’s

Example: global market [units] for magnetic resonance: CAGR (‘91-‘01): 8% despite US market decline around ’94 (also based on reimbursement reductions)

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

200620061983

0

units CAGR 8%

(1) DRA = Deficit Reduction Act(2) Current further uncertainties about future reimbursement

changes in imaging lead to reluctance in capex decisions



Growing faster than the market:Executing on the business model

Attractive follow-on business

Growing market share in placements is driving growth in the installed base and follow-on revenues

Placement market share > installed base share = future growth

→ Profitable market share growth in placements is prime lever

New placement drives growing revenue stream

Margin ↑ Margin ↑+

Imaging

Healthcare IT

In-vitro diagnostics

Year 1 new placementrevenue

Year 2-5 follow-on revenue

€ € ↑

€ € ↑ +

€ € ↑ ++



We leverage business drivers to spur organic growth

Solving our customers‘ workflow needs best.Innovations and workflow solutions provide financial, clinical and operational results.

Opening up new markets and new customer groups

Leveraging broad installation footprint and customer satisfactionfor follow-on new sales and cross-selling




We will grow our margin to 14-17% in 2010

Command higher margins for the unique solutions and innovationswe bring to our customers – time-to-market is critical

Increase profit conversion by turning volume growth into margingrowth - rigorous productivity, cost and synergy programs

Expand profits by follow-on sales to a growing installed base


+




We will generate cash as we grow

Improve quality of earnings to better cash flow

Make disciplined choices around capital investment opportunities

Optimize working capital


+


+

Convert to cash



Market Share gain

Innovations and optimized workflow drives profitable organic growth



Diagnosis



Care

2002

2007

+500 bp

Computed Tomography

Magnetic Resonance

+1400 bp +700 bp

Interventional Radiology


Creating mindshare by proven workflow results

Example of a US hospital(1):

Substantial improvement in key CMS(2) core measures in CHF

Results exceed state averages significantly

Technology helps enhance decision making, promote best practices and reduce variability

Streamlined processes help to reduce cost

Solving key workflow needs

(1) Chester County, 200+ bed hospital(2) Centers for Medicare and Medicaid Services

23%

63%

91%

77%

100% 98%

0%

20%

40%

60%

80%

100%

120%

Dischargeinstruction

ACEI/ARBs LVSDAssessment

Pre-workflow Post-workflow


We turn mindshare into market share: Growing number of Soarian contracts

174 modules live across customers 170 active implementations135 Soarian workflows at 31 locations in active use – number doubled in one year34,000+ Soarian Clinicals users

Many live locations, workflow implementation growing Growing number of contracted modules

IT orders have strong follow-on businessLeading healthcare providers choose Soarian

303 305 315361 367 370 375

450427

Q106

Q206

Q306

Q406

Q107

Q207

Q307

Q407

Q108

Great Q1 Soarian orders – installed base conversion and new customers

ConversionConversionConversion

NewNewNew

0 m$50 m$100 m$

…

+22% p.a.


We grow above market growth in emerging markets

2000 2001 2002 2003 2004 2005 2006 2007

3.2

0.7

+24% p.a.7.5

2000 2001 2002 2003 2004 2005 2006 2007

2.5

+17% p.a.

China (in RMB bn)

India(in INR bn)

Sales to Indian customers

Sales to Chinese customers

Market growth in China: CAGR 18% Market growth in India: CAGR 16%



Diagnosis



Care



We enjoy an attractive innovation pipelineWe open up new markets and win share

(1) Market in units (orders)

Customer price significantly below $1m in the US (up to $500,000 savings)

1500 out of 3000 community hospitals have no or only mobile MRI service

Market launch Nov 2007

General availability April 2008

6% of global market(1) (Jan-Feb)

Leading technology at low costOpening new markets by reaching “visionary” low price levels

MAGNETOM ESSENZA The most affordable, all-new 1.5T MRI



Rigorous productivity and cost program drives margin improvements

* excl. DX

0.65

2005

€bn

2007*2006

0.75Methodology successfully introduced as part of turnaround in 1990s

Productivity program is lifeblood of organization and key in driving profitable organic growth

MED productivity program 2005 - 2007 Highlights

0.80

11% p.a.


41% 46%

17.5 4.5 10

40% 39%

16.9 3.9 15

Americas

Europe(incl. GER)

19%15%

8.3 1.5 10

Asia Pacific

Employees (in thsd.)

External Sales (in €bn)

Important Manufacturing

€

€

€

€

Status: September 30, 2007

We execute on a Low Cost Country Strategy


41% 46%

17.5 4.5 10

40% 39%

16.9 3.9 15

Americas

Europe(incl. GER)

19%15%

8.3 1.5 10

Asia Pacific

Employees (in thsd.)

External Sales (in €bn)

Important Manufacturing

€

€

€

€

Status: September 30, 2007

We execute on a Low Cost Country Strategy

We leverage low cost country opportunities along the complete value chain:

Build R&D innovation strength

Utilize low cost position for manufacturing

Attract talent pool

Tap into local innovation potential and understand localclinical needs through research collaborations

Goals



We ensure first mover’s advantageto build unique solutions that drive higher margins

1) Focus on imaging agents and life sciences business, but no clinical in vitro diagnostics2) Focus on life sciences applications and integration of diagnostics & therapeutics development3) Include on IP in ECL detection technologies, which Roche requires for its Immuno diagnostics business

Healthcare IT

Integrated in-vivo and in-vitro diagnostics

GE: IDX

2000 2006 2001 2002 2003 2004 2005 2007 2008

Philips: StentorSiemens: GSD

Philips: Visicu

Siemens: CTISiemens: DPC

Siemens: Bayer Dx

GE: Abbott

Siemens: Dade

Roche: Ventana

GE: Amersham1)Roche2):- 454 Life Sci.- BioVeris3)

- NimbleGenRoche: Igen3)

Siemens: Shared Medical Systems



We created the world’s leading diagnostics company

Acquisition of DPC, Bayer, Dade Market leadership

1) Merger agreement with Ventana announced 22 Jan 08 Ventana (2006 sales: $238m, €193m)

DadeBehring

Bayer

DPC

OCD (J&J)

Siemens

Olympus

Roche

BioMerieux

Abbott

BeckmanCoulter

€bn

1)

3.3

1.1

1.4

1.5

1.9

2.3

3.2

Fully integrated plat-forms; mid/low volume labsMarket leader in customerservice

Broad portfolioLab automationMolecular DiagnosticsHigh/mid volume labs

Leading position in immuno-diagnostics



Significant Synergies in Diagnostics are being realized

Synergies

€260m

Cost and productivity measures

€240m



Diagnosis



Care

Identification of synergieswell on track

Total: €500m


IVD provides significant additional opportunitiesfor Siemens Healthcare as a whole

IT integration

Innovationleadership

“Partner of choice”

Grow market share and installed base



Diagnosis



Care


I was really excited to learn about the Siemens acquisition of the IVD companies. Since industry sources report that 60 to 90% of all medical decisions are based on clinical laboratory and diagnostic modality testing, I believe this move continues to demonstrate Siemens’ commitment to the vision of integrated diagnostics.

Furthermore, the addition of molecular science to our traditional studies and the power of “smart” clinical information is going to change medicine as we know it. With Siemens as our partner,we believe that we can reach our strategic, clinical, and IT goals.

“

”Fred Crowgey, MBA, M(ASCP)Project Director, IS PMOMedCentral Health System

Winning key institutions and lead market change

“Partner of choice”

MedCentral Health SystemLargest medical community between Cleveland, Columbus; 351 beds, 2 hospitals, College of Nursing, urgent care center, 3 outreach labs, PainCare, Home Health Care & Hospice



CA-IX(1)In vitro diagnostics In vivo diagnostics

Plasma and tissue(2)

based CA-IX test to detect cancer

PET CA-IX test(2) to localize the invasivetumors

Early detection of invasive tumors and metastases

LocalizationTumor staging

CA-IX – targetedtreatment

Therapy monitoringFollow-up

1) Carbonic Anhydrase-IX is a biomarker indicative of invasive, often hypoxic tumors2) In development

SynergiesBio-medical expertiseR&D resource alignmentSharing (pre-)clinical dataClinical trialsIntellectual property

TreatmentIn Vitro In Vivo

DiagnosisCare

… drives new business opportunities

Innovation leadership


Lab studies ordered to monitor treatment response/disease progression of metastatic breast cancer patient

Siemens ADVIA Centaur XP

Lab information system

ASTM order & result

Treatment spending controlledTreatment quality controlled

… enables new quality of clinical and financial results

IT integration

Soarian workflow management system continuously monitor and analyze information to identify critical results for physician follow-up


By leveraging our footprint

Largest Korean laboratory customer

Competitive conversion to Siemens in IVD based on

Strong customer relationship in vivo diagnostics with Siemens

Strong workflow automation

Test vol.: 2m tubes/year12m tests/year

Sales amounts: €12m for 7 years

Grow market share and installed base



Creating value based on best portfolio, synergies and leverage of first diagnostics company

Best portfolio in the industry:

Integration of IVD businesses

Full realization of synergies within DX division

Leveraging best portfolio within overall sectorHealthcare Sector EVA in 2010 higher than

level before Diagnostics acquistion

Margin expansion to 14-17% by 2010 by innovations, best in class cost position and growing installed base business



Diagnosis



Care


Focus and deliver

Driving profitable growth and cash returns

Getting the most out of the integrated diagnostics company

Achieving best-in-class cost position incl. SG&A reduction

Innovating for fast growth and competitiveness


+


+

Convert to cash


Reconciliation and Definitions for Non-GAAP Measures (I)

Group profit from Operations is reconciled to Income before income taxes of Operations under Reconciliation to financial statements on thetable Segment Information. See our Financial Publications at our Investor Relations website under www.siemens.com/ir.

Earnings before interest and taxes (EBIT) (adjusted) is Income from continuing operations before income taxes less Financial income (expense), net and Income (loss) from investments accounted for using the equity method, net.

Earnings before interest, taxes, depreciation and amortization (EBITDA) (adjusted) is EBIT before Depreciation and Amortization, definedas amortization and impairments of intangible assets depreciation and impairments of property, plant and equipment.

Group profit is reconciled to EBIT and EBITDA on the table Segment Information Analysis (II). See our Financial Publications at our Investor Relations website under www.siemens.com/ir.

Return on Capital Employed (ROCE) is a measure of how capital invested in the Company or the Group yields competitive returns. For the Company, ROCE is calculated as Net income (before interest) divided by average Capital employed (CE). Net income (before interest) is defined as Net income excluding Other interest income (expense), net and excluding taxes on Other interest income (expense), net. Taxes on Other interest income (expense), net are calculated in simplified form by applying the current tax rate which can be derived from the Consolidated Statements of Income, to Other interest income (expense), net. CE is defined as Total equity plus Long-term debt plus Short-term debt and current maturities of long-term debt minus Cash and cash equivalents. Because Siemens reports discontinued operations, Siemens also calculates ROCE on a continuing operations basis, using Income from continuing operations rather than Net income. For purposes of this calculation, CE is adjusted by the net figure for Assets classified as held for disposal included in discontinued operations less Liabilities associated with assets classified as held for disposal included in discontinued operations.For the Operations Groups, ROCE is calculated as Group profit divided by average Net capital employed (NCE). Group profit for the Operations Groups is principally defined as earnings before financing interest, certain pension costs and income taxes. Group profit excludes various categories of items which are not allocated to the Groups since the Managing Board does not regard such items as indicative of the Groups’performance. NCE for the Operations Groups is defined as total assets less tax assets, provisions and non-interest bearing liabilities other than tax liabilities.Average (Net) Capital employed for the fiscal year is calculated as a 'five-point average' obtained by averaging the (Net) Capital employed at the beginning of the first quarter plus the final figures for all four quarters of the fiscal year. For the calculation of the average during for the quarters, see below:


Reconciliation and Definitions for Non-GAAP Measures (II)

• NCE for Operations Groups

Our cash target is based on the Cash Conversion Rate (CCR), which serves as a target indicator for the Company’s or the Group’s cash flow. For the Company, CCR is defined as the ratio of Free cash flow to Net income, where Free cash flow equals the Net cash provided by (used in) operating activities less Additions to intangible assets and property, plant and equipment. Because Siemens reports discontinued operations, this measure is also shown on a continuing operations basis, using Income from continuing operations, Net cash provided by (used in) operating activities – continuing operations and Additions to intangible assets and property, plant and equipment for continuing operations for the calculation. For the Groups, CCR is defined as Free cash flow divided by Group profit.

All values needed for the calculation of ROCE and CCR can be obtained from the Consolidated Financial Statements and Notes to Consolidated Financial Statements.Group profit, Net capital employed and Free cash flow for the Company and the Groups can be found on the table Segment information. Our Consolidated Financial Statements are available on our Investor Relations website under www.siemens.com/ir.

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 NCE for the Operating Groups and risk-adjusted equity for the Financing and Real estate businesses as a base). A positive EVA indicates that a business has earned more than its cost of capital, and is therefore defined as value-creating. A negative EVA indicates 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.

Average calculation for CE*: Year-to-DateQ1 2 Point average: (CE ending Q4 Prior year + CE ending Q1) / 2Q2 3 Point average: (CE ending Q4 Prior year + CE ending Q1 + CE ending Q2) / 3Q3 4 Point average: (CE ending Q4 Prior year + CE ending Q1 + CE ending Q2 + CE ending Q3) / 4Quarter-to-DateQ1 2 Point average: (CE ending Q4 Prior year + CE ending Q1) / 2Q2 2 Point average: (CE ending Q1 + CE ending Q2) / 2Q3 2 Point average: (CE ending Q2 + CE ending Q3) / 2Q4 2 Point average: (CE ending Q3 + CE ending Q4) / 2


Reconciliation and Definitions for Non-GAAP Measures (III)

Our capital structure target is based on an Adjusted industrial net debt divided by EBITDA (adjusted). For the calculation of Adjusted industrial net debt, we subtract from Net debt (defined as Long-term debt plus Short-term debt and current maturities of long-term debt less Cash and cash equivalents less Available-for-sale financial assets) (1) SFS debt excluding SFS internally purchased receivables and (2) 50% of the nominal amount of our hybrid bond; and add/subtract (3) Funded status of Pension benefits, (4) Funded status of Other post-employment benefits; andadd (5) Credit guarantees. The components of Net debt are available on our Consolidated Balance Sheets, SFS debt less internally purchased receivables is available in our Management Discussion & Analysis under Capital Resources and Requirements. The Funded status of our principle pension plans and Other post-employment benefits, the amount of credit guarantees and the nominal amount of our Hybrid bond is available in the Notes to our Consolidated Financial Statements.

To measure Siemens’ achievement of the goal to grow at twice the rate of global GDP, we use GDP on real basis (i.e. excluding inflationand 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.

Return on equity (ROE) 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.

Group profit from Operations, EBIT (adjusted), EBITDA (adjusted), ROCE, CCR, EVA and Adjusted industrial net debt are or may be Non-GAAP financial measures as defined in relevant rules of the U.S. Securities and Exchange Commission. Our management takes these measures,among others, into account in its management of our business, and for this reason we believe that investors may find it useful to consider these measures in their evaluation of our performance. None of Group profit from Operations, EBIT (adjusted), EBITDA (adjusted), ROCE and EVA should be viewed in isolation as an alternative to IFRS net income for purposes of evaluating our results of operations; CCR should not be viewed in isolation as an alternative to measures reported in our IFRS cash flow statement for purposes of evaluating our cash flows; and Adjusted industrial net debt should not be viewed in isolation as an alternative to liabilities reported in our IFRS balance sheet for purposes of evaluating our financial condition.


Siemens Investor Relations Team

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

e-mail: [email protected]

Telephone: +49-89-636-32474

Fax: +49-89-636-32830

Michael Sen +49-89-636-33780

Florian Flossmann +49-89-636-34095

Sabine Groß +49-89-636-35755

Dr. Martin Meyer +49-89-636-33693

Christof Schwab +49-89-636-32677

Dr. Gerd Venzl +49-89-636-44144

Susanne Wölfinger +49-89-636-30639

Documents

Siemens Healthcare – Focus and deliver...Page 2 February 28, 2008 Capital Market Day Siemens Healthcare Copyright © Siemens AG 2008. All rights reserved. This document contains