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Siemens begins fiscal 2012 with new structure

Fourth Sector Infrastructure & Cities launched on October 1

(PresseBox) (Munich, ) Siemens will start off fiscal 2012 on October 1, 2011 with a further developed structure. The newly founded Infrastructure & Cities Sector begins operation on that day, as planned. In the future, the operating businesses of Siemens will be organized in the Industry, Infrastructure & Cities, Energy, and Healthcare Sectors. By forming the new Sector, the company plans to be a leading participant in the dynamic growth of cities and infrastructure investments. "We are rigorously focusing our business on growth. Our new setup will put us even closer to our customers. The Infrastructure & Cities Sector will open up additional business opportunities in the growth market of cities," said Peter Löscher, President and CEO of Siemens AG. "Cities face the enormous challenge of reconciling urban growth with a good quality of life. We can offer them comprehensive solutions from one hand to achieve this. In order to better serve the needs of cities, we are focusing the new Sector specifically on cities and infrastructure," stated Roland Busch, CEO of the Infrastructure & Cities Sector.

In the coming days, the global population will surpass the seven-billion mark. Ever greater numbers of people want to live in cities and will do so. Today, over half of the global population already lives in cities and this share will climb to 60 percent within 20 years, an increase of 1.4 billion urban residents. In response to this growth, cities throughout the world will have to massively invest in expanding their infrastructures. The market for urban investments addressed by Siemens currently totals around €300 billion a year. Siemens already offers the world's broadest and most comprehensive portfolio for urban infrastructures.

The new Infrastructure & Cities Sector will manage the company's global business with cities and infrastructures from Munich, Germany. Siemens is bundling its competencies and business activities in one unit in order to offer cities solutions for mobility, environmental protection and energy saving. The new Sector, with around 87,000 employees, will contain the Mobility and Building Technology Divisions from the Industry Sector, as well as the Power Distribution Division and Smart Grid business from the Energy Sector.

Infrastructure & Cities will comprise five Divisions: Rail Systems (rolling stock), Mobility and Logistics (traffic, transport and logistics management), Low and Medium Voltage, Smart Grid (intelligent power grids) and Building Technologies. Under this new setup, the Divisions can orient their respective businesses even closer to their target markets and, through close cooperation within the Sector, develop additional business opportunities in the growth market of cities.

To take advantage of this additional growth potential, Siemens will employ a new approach for sales as well as for research and development in its urban business. The Sector's Centers of Competence, in which Siemens will bundle its expertise for urban infrastructures, are an important element in this strategy. The first Center is currently being built in London and two others are planned for Asia and the U.S. Here, Siemens experts will conduct research for new urban solutions and tailor special packages of Siemens products for urban planners and mayors. These include integrated traffic solutions for preventing congestion as well as innovative concepts for reducing power consumption - and thus city costs - on a broad basis. Even in times of limited public budgets, Siemens solutions - such as Energy-Saving Contracting - help cities and communities cut costs and improve their environmental protection balance. Moreover, Siemens solutions like traffic tolling systems offer cities and communities new sources of income.

Siemens meets with urban decision-makers directly through a team of City Account Managers. As a central contact partner, they can offer their respective city the entire Siemens portfolio from one hand. In addition, they contribute their experiences to help further develop the company's portfolio for cities. Customer proximity is a key driver for ensuring sustainable company growth and is part of the One Siemens target system.

The Industry Sector and its new organization will focus on industry customers. The Sector will further reinforce its industry-specific and service business and expand its leading role in industrial software. The Sector with more than 100,000 employees will have three Divisions: Industry Automation and Drive Technologies as well as the newly founded Customer Services. To fulfill the specific requirements posed by large-scale plant construction, Metals Technologies will be organized as a business unit that is directly Sector-led.

The Energy Sector remains the world's leading supplier of a broad spectrum of products, solutions and services for power generation and transmission, and for the production, conversion and transport of the primary energy sources oil and gas. With around 75,000 employees, the Sector will have six Divisions: Fossil Power Generation, Wind Power, Solar & Hydro, Energy Service, Oil & Gas, and Power Transmission.

The Healthcare Sector, unaffected by the reorganization and with around 49,000 employees, remains one of the world's biggest providers in the healthcare segment and is organized in three Divisions: Imaging & Therapy Systems, Clinical Products, and Diagnostics.

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 the current expectations and certain assumptions of Siemens' management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens' control, affect Siemens' 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 or implied by such forward-looking statements. In particular, Siemens is strongly affected by changes in general economic and business conditions as these directly impact its processes, customers and suppliers. This may negatively impact our revenue development and the realization of greater capacity utilization as a result of growth. Yet due to their diversity, not all of Siemens' businesses are equally affected by changes in economic conditions; considerable differences exist in the timing and magnitude of the effects of such changes. This effect is amplified by the fact that, as a global company, Siemens is active in countries with economies that vary widely in terms of growth rate. Uncertainties arise from, among other things, the risk of customers delaying the conversion of recognized orders into revenue or cancelling recognized orders, of prices declining as a result of adverse market conditions by more than is currently anticipated by Siemens' management or of functional costs increasing in anticipation of growth that is not realized as expected. Other factors that may cause Siemens' results to deviate from expectations include developments in the financial markets, including fluctuations in interest and exchange rates (in particular in relation to the U.S. dollar and the currencies of emerging markets such as China, India and Brazil), in commodity and equity prices, in debt prices (credit spreads) and in the value of financial assets generally. Any changes in interest rates or other assumptions used in calculating obligations for pension plans and similar commitments may impact Siemens' defined benefit obligations and the anticipated performance of pension plan assets resulting in unexpected changes in the funded status of Siemens' pension and other post-employment benefit plans. Any increase in market volatility, deterioration in the capital markets, decline in the conditions for the credit business, uncertainty related to the subprime, financial market and liquidity crises, or fluctuations in the future financial performance of the major industries served by Siemens may have unexpected effects on Siemens' results. Furthermore, Siemens faces risks and uncertainties in connection with: disposing of business activities, certain strategic reorientation measures; the performance of its equity interests and strategic alliances; the challenge of integrating major acquisitions, implementing joint ventures and other significant portfolio measures; the introduction of competing products or technologies by other companies or market entries by new competitors; changing competitive dynamics (particularly in developing markets); the risk that new products or services will not be accepted by customers targeted by Siemens; changes in business strategy; the interruption of our supply chain, including the inability of third parties to deliver parts, components and services on time resulting for example from natural disasters; the outcome of pending investigations, legal proceedings and actions resulting from the findings of, or related to the subject matter of, such investigations; the potential impact of such investigations and proceedings on Siemens' business, including its relationships with governments and other customers; the potential impact of such matters on Siemens' financial statements, and various other factors. More detailed information about certain of the risk factors affecting Siemens is contained throughout this report and in Siemens' 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 neither intends to, nor assumes any obligation to, update or revise these forward-looking statements in light of developments which differ from those anticipated.

Siemens AG

Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. For over 160 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. The company is the world's largest provider of environmental technologies. More than one-third of its total revenue stems from green products and solutions. In fiscal 2010, which ended on September 30, 2010, revenue from continuing operations (excluding Osram and Siemens IT Solutions and Services) totaled €69 billion and net income from continuing operations €4.3 billion. At the end of September 2010, Siemens had around 336,000 employees worldwide on the basis of continuing operations. Further information is available on the Internet at: http://www.siemens.com.

New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors Profit; return on equity (after tax), or ROE (after tax); return on capital employed (adjusted), or ROCE (adjusted); Free cash flow; cash conversion rate, or CCR; adjusted EBITDA; adjusted EBIT; adjusted EBITDA margins, earnings effects from purchase price allocation, or PPA effects; net debt and adjusted industrial net debt are or may be non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation as alternatives to measures of Siemens’ financial condition, results of operations or cash flows 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. Definitions of these supplemental financial measures, a discussion of the most directly comparable IFRS financial measures, information regarding the usefulness of Siemens’ supplemental financial measures, the limitations associated with these measures and reconciliations to the most comparable IFRS financial measures are available on Siemens’ Investor Relations website at www.siemens.com/nonGAAP. For additional information, see “Supplemental financial measures” and the related discussion in Siemens’ annual report on Form 20-F for fiscal 2010, which can be found on our Investor Relations website or via the EDGAR system on the website of the United States Securities and Exchange Commission.