La Storia nel Futuro Genova, 10 dicembre 2007 Vincenzo Giori, Amministratore Delegato Siemens Italia MEGATRENDS: Come anticipare i cambiamenti “seguendo” il futuro

Our founder, our heritage, our DNA

A world of proven talent, delivering breakthrough innovations, giving our customers a unique competitive edge, enabling societies to master their most vital challenges and creating sustainable value Our vision – Setting the pace

Innovations keep us strong Milestones across the centuries

Innovation is our lifeblood Major R&D investments (worldwide) Major innovations Major R&D investments (Italy) 1.300 R&D employees 8 R&D locations 1.800 active patents 5.7 billion EUR in fiscal 2006* 48,900 R&D employees worldwide 30,000 software engineers 150 R&D locations in over 30 countries around the world 10,410 inventions in 2006 62,000 active patents Our patent positions (2006): Germany: No. 1 Europe: No. 2 U.S.: No. 9 Recent breakthroughs: Inauguration of the MES Expertise Center in Genoa (a new excellence center for the development of specific IT solutions based on Manufacturing Execution Systems, developed together with Microsoft) Piezo injection (Reduces fuel consumption by 20%) Somatom Definition (World's first dual source CT) Combined cycle turbine (World's largest and most powerful turbine; reduces pollutants: 40,000 tons of CO 2 / year) Velaro E (Europe's fastest train) Production and delivery of the smart card for Carta Regionale dei Servizi – Lombardia

1.300 R&D employees

8 R&D locations

1.800 active patents

5.7 billion EUR in fiscal 2006*

48,900 R&D employees worldwide

30,000 software engineers

150 R&D locations in over 30 countries around the world

10,410 inventions in 2006

62,000 active patents

Our patent positions (2006):

Germany: No. 1

Europe: No. 2

U.S.: No. 9

Recent breakthroughs:

Inauguration of the MES Expertise Center in Genoa (a new excellence center for the development of specific IT solutions based on Manufacturing Execution Systems, developed together with Microsoft)

Piezo injection (Reduces fuel consumption by 20%)

Somatom Definition (World's first dual source CT)

Combined cycle turbine (World's largest and most powerful turbine; reduces pollutants: 40,000 tons of CO 2 / year)

Velaro E (Europe's fastest train)

Production and delivery of the smart card for Carta Regionale dei Servizi – Lombardia

Global presence of R&D: 48,900 R&D employees at more than 150 locations in over 30 countries Genova Giorgio Cuttica Innovator of The Year 2007

Innovation is a basis for profitability at Siemens

“ Shape the Future” Innovation drives Siemens to SHAPE THE FUTURE

Innovation drives

Siemens to

SHAPE THE FUTURE

The Most Important Innovation Strategies and their Positioning along the Technology Lifecycle Pace-setting Technologies: Determine tomorrow‘s competitiveness Key Technologies: Determine today‘s competitiveness Basic Technologies: Basic competence for today‘s business New Technologies: Discontinuity New rules of the game Maturity Time First Mover „ The early bird gets the worm“ american saying Fast Follower „ The early bird gets the worm but the second mouse gets the cheese“ G. Keillor Trendsetter „ If you‘re in control of wormholes and mousetraps, you get both - the worms and the cheese“ First Mover Trendsetter Fast Follower

Pace-setting Technologies:

Determine tomorrow‘s

competitiveness

Key Technologies:

Determine today‘s competitiveness

Basic Technologies:

Basic competence for today‘s business

New Technologies:

Discontinuity

New rules of the game

Siemens’ innovation strategy: Be a trendsetter in our businesses

“ Pictures of the Future”

Strategic planning: the combination of extrapolation and retropolation leads to the Pictures of the Future

The Pictures of the Future are comprehensive future scenarios for our Business Areas

Picture of the Future Transportation

Why Megatrends? From the scenario analysis we understood that World is influenced by some Megatrends

From the scenario analysis

we understood that

World is influenced by

some Megatrends

Megatrends Time Horizon Range Impact intensity

Time Horizon

Range

Impact intensity

The Megatrends “Demographic Change” and “Urbanization” change the world dramatically

Megatrends – Global View Trends to watch to be well prepared to master global challenges

Siemens Strategy based on Megatrends Definition of portfolio Prioritization of R&D investments Planning of Competencies

Leading businesses in attractive application fields… Divestment of selected businesses and strategic partnerships… Infineon  Sold 4/2006 SBS PRS  Sold 4/2006 Dematic  Sold 7/2006 VDO  Sold H2/2007 Communication Networks  JV Nokia Siemens Networks

...To focus portfolio on relevant Megatrends

The Healthcare example Megatrends: provide opportunities for growth

The Healthcare example Our strategy: Improving healthcare efficiency

The Healthcare example Great potential to improve healthcare efficiency

The Healthcare example Innovation leadership in CT: the world’s first Dual Source CT

The Healthcare example Innovation leadership in CT: the world’s first Dual Source CT

The Healthcare example Recent Acquisitions Created the First Integrated Diagnostic Company

The Healthcare example Radical innovation requires systemic approach Workflow Know How Services Diagnostic/ Therapeutic Technologies Healthcare IT Systems Networking Optimization of Workflow in Healthcare

The Healthcare example Workflow: a paradigm shift - Integrated Healthcare

The Healthcare example Workflow: a paradigm shift How can Siemens implement Workflow? A set of resources and skills The team is comprised of healthcare professionals, engineers, IT specialists, business management experts and healthcare economists. Our strength lies in connecting strategy, process and technology. Understanding these interactions allows us to work with our customers to develop and implement solutions that have a proven outcome on cost and quality. Cardiology Oncology Neurology Surgery Radiology Strategy and Management Clinical and Business Process Optimization Technology and Infrastructure Planning, and Integration

How can Siemens implement Workflow?

A set of resources and skills

The team is comprised of healthcare professionals, engineers, IT specialists, business management experts and healthcare economists.

Our strength lies in connecting strategy, process and technology.

Understanding these interactions allows us to work with our customers to develop and implement solutions that have a proven outcome on cost and quality.

The Healthcare example Employee education in clinical workflow

People Excellence and High Performance Culture To win the future challenges and to reach the best performance Siemens invests in COMPETENCIES PEOPLE EXCELLENCE is one of the pillars of our strategy Our vision is based on the HIGH PERFORMANCE CULTURE Our PEOPLE must: Be qualified and aim to a continuous development Be oriented to reach our goals Work together by thinking today to tomorrow challenges

To win the future challenges and to reach the best performance

Siemens invests in COMPETENCIES

PEOPLE EXCELLENCE is one of the pillars of our strategy

Our vision is based on the HIGH PERFORMANCE CULTURE

Our PEOPLE must:

Be qualified and aim to a continuous development

Be oriented to reach our goals

Work together by thinking today to tomorrow challenges

People Excellence and High Performance Culture "Leadership Excellence is a prerequisite for Business Excellence"

"Leadership Excellence is a prerequisite for Business Excellence"

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