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Fit4More – updateJoe Kaeser, CFO

EPG ConferenceMay 23, 2006

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Safe harbor statement

This presentation contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified either orally or in writing by words as “expects”, “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, 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 and various other factors. More detailed information about certain of these factors is contained in Siemens’ filings with the SEC, which are available on the Siemens website, www.sec.govwww.siemens.com and on the SEC’s website, . 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 anticipated, believed, estimated, expected, intended, planned 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.

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Our mission – setting the pace

A growth company that provides every customerwith the highest sustainable value.

Technology leader in the global electrical industry.

Attractive to the best and brightest in the world. Our employees are proud of their company.

Committed to an ambitious value code:Humaneness, equal opportunity, strict ethical standards in all business dealings.

One of the most valuable companies in the world.

One of the world's most successful companies inthe electrical industry.Number one or two in all of its businesses.

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Key Figures FY 2005(in billions of euros)

New Orders

Sales

Group Profit from Operations

Income fromcontinuing operations

EPS from continuing operations (in euros, not diluted)

Net Cash from continuingoperations from operating and investing activities

Dividend (in euros)

83.791

75.445

4.687

3.058

3.43

(1.489)

1.35

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Active in six business areas

LightingAutomation and Control

Information andCommunications Power Transportation Medical

OSRAMAutomation andDrivesIndustrial Solutions and Services

Communications

Siemens BusinessServices

Power Generation

Power Transmissionand Distribution

TransportationSystemsSiemens VDOAutomotive

Medical Solutions

Siemens Building Technologies

4.8

27%24%* 16% 10%18% 5%

* Total sales of Operations Groups excluding Other Operations

Q2 FY06 Performance(in billions of euros)

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(0.2)

6.5

0.5

4.0

0.3 0.2

3.6

0.32.0

0.11.2

Sales* Group Profit

+14%+15%+10%

y-o-y growth

+36%+34%+7%

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Americas

22%25%

33%

101 19.1 96

€

Europe(excl. Germany)

27%33%

21%

125 24.4 61

€

Germany36%

21% 25%

165 15.7 72

€

Others3%

8% 6%

12 6.1 18

€

Asia-Pacific12% 13% 15%

58 10.1 44

€

Employees (thousands)

Sales (billions of euros)

Major facilities

€

As of September 30, 2005

Our global footprint fosters sustainable growth

Employees by region (in thousands)

250

300

150

200

FY 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 20042003 2005

Germany

International

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Local innovation is our key success factor

China Overview FY2005New Orders €1.2bn (+28%)

Sales €0.8bn (+23%)

Employees 12,000

Regional Offices 19

Companies 11‘Siemens Corporate Technology India‘ R&D CenterGlobal Development of A&D Traction InvertersGlobal Competency Center for Mobile x-ray Units

India Overview FY2005New Orders €4.1bn (+40%)

Sales €3.2bn (+19%)

Employees 31,000

Regional Offices 51

Companies 45Magnetic Resonance Imaging CoE AsiaSBT R&D Center for fire detection & alarm systems R&D Center for Home Entertainment SolutionsOSRAM Design Center China

3TR Power Contactors3TF Power ContactorsSOMATOM Spirit

MES* developed in CHN

*MES: Manufacturing Execution System

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Opportunities from global Megatrendsdrive our long term strategy

Energy Management &Environmental Care

Automation & Control,Industrial Infrastructure

Healthcare

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Desire for Clean Energyoffers abundant opportunities

Advancing on reliable technologies to meet changing market demandsFossil Power Generation:

Large gas turbines & CCPP

Worldwide largest gas turbine Gas turbine SGT5-8000H

Fuel Gas, OilOutput 340 MWEfficiency 39%

Combined cycle SCC5-8000H

Output 530 MWEfficiency 60%

SGT5-8000H

Wind:Bonus Energy

Flender

CoalGasification:

Sustec

OrganicInnovation,e.g. Water

Flue Gas Desulphurization:

Wheelabrator

*IGCC=Integrated Gasification Combined Cycle

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Bundling forces to leverageOil & Gas opportunities

Worldwide first completely electrically driven gas liquefaction systemUse of largest high speed synchronous motors everbuilt at Siemens (2x 65MW)

Sub-sea compression is the sole possibility for production in arctic or harsh environment Potential for cost reduction for existing off-shore oilfields

Total accessible Oil & Gas market

+ 5% p.a.

29

~ 37

FY 2004 FY 2010

(in billions of euros)Total Siemens orders in Oil & Gas

+ 11% p.a.

100

190(Indexed)

FY 2004 FY 2010

Solutions for Up-, Mid- and Downstream Applications:

Compressor/motor unit

Compression and Pumping

Power Generation and Distribution

Water Management

Automation and Control

Industrial IT

Life-Cycle Services

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Industrial Automation Solutions:More than just products

Data ManagementEngineeringCommunication

Cost ReductionTime AdvantageEfficiency Advantage

A&D PTD SBT

>=110kV

MESManufacturing Execution System

ERPEnterprise Resource Planning

Automation

Medium Voltage

Low Voltage

Threefold Consistency Threefold Customer Benefit

TIA* TIP*

Automation and energy management in process / manufacturing industries, functional buildings, infrastructure

* TIA: Totally Integrated Automation TIP: Totally Integrated Power

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We meet customer needs forTraceability Compliance in Food Processing

Standardized MES layer for all plantsFull compliancy with traceability

Guarantee full traceability complianceOptimize plant efficiency

Implement MES* to feed / store ERP* system with real time production data

Challenge Action Solution

* MES = Manufacturing Execution System; ERP = Enterprise Resource Planning

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Improving healthcare efficiency through Innovation and Process Optimization

*IGCC=Integrated Gasification Combined Cycle

MobilityTelemedicine

EfficientBuilding

TechnologyMedicalEquipment

IT Systems

EnergyManagement Fire & Safety,

Access Control

ElectronicPatient Files

Diagnostics

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Fit 4Fit4More enables us to live up to our mission

Performanceand Portfolio

OperationalExcellence

CorporateResponsibility

PeopleExcellence

Execute SiemensManagement System (powered by top +) with focus on− Innovation− Customer Focus− Global

Competitiveness

Achieve high per-formance cultureEstablish Leader-ship ExcellenceProgramIncrease global talent poolStrengthen expert careers

Solve Mobile DevicesFinalize strategicreorientation of I&Ci.e. Com and SBSStrategicreorientation of L&AReach target mar -gins at all GroupsBuild portfolio for2x GDP growth

Achieve Best in Class in− Corporate

Governance− Business

Practices− Sustainability− Corporate

Citizenship

Fit4 More: Profit & Growth - Program

Execution by April 2007!

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Fit4More: short term focus activities

Performanceand Portfolio

OperationalExcellence

CorporateResponsibility

PeopleExcellence

Fit4 More: Profit & Growth - Program

Integration of recent acquisitions to support2x world GDP growth

Reverse trend in operational asset / cash management / CAPEX

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BewatorElectriumSustecDiagnostic Products Corp.

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Great Company

Key take aways

Great Opportunities

Great People

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Appendix

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Key figures

in billions of euros Q2 FY06 ∆Q FY 05 ∆

+22% 11%

7%

(9)%

0%

(0.44)

(4.504)

8%

+21%

+8%

+5%

+5%

+182%

24.413

FY 04

83.791 75,789

70.237

5.136

3.0471

3.87

3.015

1.25

75.445

Group Profit from Operations 1.325 4.687

Income from continuing operations 901 3.058

Net Cash from continuing operationsfrom operating and investing activities 0.401 (1.489)

Dividend (in euros) – 1.35

3.43

21.510

1.01

New Orders

Sales

EPS from continuing operations(in euros, not diluted)

1 Income from continuing operations, excluding a positive effect related to Infineon share sale and a goodwill impairment. Including these effects, income from continuing operations for FY 04 amounts to EUR 3.450 bn.

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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 Reports / Fiscal 2005, Annual Report Fiscal 2005 or Fiscal 2006 / Quarter 2 / 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 as of September 30, 2005 was €983 million. See also Siemens’ Form 20-F at our Investor Relations website under www.siemens.com

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 theprofitability 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.

A reconciliation of EVA may be found on our Investor Relations website under www.siemens.com

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Siemens Investor Relations Team

Marcus Desimoni +49-89-636-32445

Roland Bischofberger +49-89-636-36165

Frank Heffter +49-89-636-34095

Irina Pchelova +49-89-636-33693

Christina Schmöe +49-89-636-32677

Susanne Wölfinger +49-89-636-30639

Webpage: http://www.siemens.com Investor Relations

e-mail: investorrelations@siemens.com

Fax: +49-89-636-32830