FEB-04

Innovating the Mobile World

Rudi Lamprecht, Group PresidentJoe Kaeser, Chief Financial Officer

Information and Communication MobileFinancial Market Day, February 17, 2004

2FEB-04

Sales

Profit

ICM

MP

N

ICM

MP

N

1,078

1,260

2,619

1,199

1,309

2,856

1,162

1,486

2,957

60

1449

(25)

52

59

26

64

123

151%

357%

(57% )

108%

23%

51 mill.

4%

14%

(3% )

13%

18%

8%YoYQoQQ4 FY03 Q1 FY03Q1 FY04

in millions of euros

YoYQoQQ4 FY03 Q1 FY03Q1 FY04

ICM increased sales and profit significantly

in millions of euros

3FEB-04

Actuals in represented period Previous year data in represented period

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

FY02 FY03 FY04

Sale

s

6% (1%) (1%) (13%) (9%)(15%) (14%) (2%) 4%

2,9572,619

2,1602,3292,8562,506 2,6812,731

3,127

2,9

42

2,7

48

2,5

43 3,0

66

3,1

27

2,7

31

2,5

06

2,6

81,

2,8

56

Actuals in represented period Previous year data in represented period

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

FY02 FY03 FY04in millionsof euros

New

Ord

ers

5% 20% (19%)(15%)

(24%) (31%)

(2%)12% 20%

3,0222,838

2,3132,3002,5092,359

2,536

3,3253,318

3,1

66

2,7

69

2,9

30

3,0

01

3,3

18

3,3

25

2,3

59

2,5

36

2,5

09

in millionsof euros

ICM volumes indicate an upwards trend

4FEB-04

(84% )

Net workingcapital turnover

FY01 FY02 FY03

2,3

19

0

1,200

2,400

4

25+ 452%

4.8

35

4

Q1 FY04

28.4

236692594Net cash*) 14

*) from operating and investing activities in millions of euros

Net working capitalin millions of euros

ICM net working capital has been improved continuously

5FEB-04

1.9

Mobile Networks sales in billions of euros

+18% p.a.

FY98 FY03 Q1 FY04

Ericsson

Motorola

Lucent

Nortel

Nokia

Siemens

NEC

Alcatel 4

5

6

10

11

12

13

29 Ericsson

Nokia

Siemens

Motorola

Nortel

Lucent

NEC

Alcatel 7

6

9

9

10

11

14

26 Ericsson

Nokia

Siemens

Motorola

Nortel

Lucent

NEC ~5

~9

~10

~11

~14

4.3 1.2

Alcatel

~10

ICM Mobile Networks: constant gain of market share

Market share in %

~30

~7

6FEB-04 Source: Goldman Sachs (1998), Gartner Dataquest (2003)

FY98 FY03 Q1 FY04

Mobile Phones shipments in millions of units

6.1 +45% p.a. 39.1

Nokia

Motorola

Ericsson

Panasonic

Samsung

Alcatel

Siemens

Philips

13.0

2.7

3.6

3.9

7.4

14.3

21.1

24.3

NEC

Others

3.9

3.3

Nokia

Motorola

Samsung

SiemensSony EricssonLG

Panasonic

NEC

14.6

1.6

3.0

5.2

8.2

10.2

15.2

Sharp

Others

4.2

2.5

35.3 Nokia

Motorola

Samsung

Siemens

Sony Ericsson

LG

NEC

12

5

10

10

14

Others

6

2

36

Mobile Phones sales in millions of euros

1,031 +34% p.a. 4,474

15.2

1,486

Panasonic 3

Sharp 2

ICM Mobile Phones proves to be a major player in the industry

Market share in %

7FEB-04

WWEurope EMEA LAM APACUS

4% 4%

13%

16%

20%

9%

Source: Gartner Dataquest Q3 CY03

No. 4No. 2 No. 3 No. 5 No. 8No. 2

ICM Mobile Phones: increasing market shares

8FEB-04

Mission 2004

Innovation Customer focus Global Competitiveness

Software! Optimizing SW

development; R&D

Manufacturing! e.g. Design-to-cost

Shared services! e.g. Purchasing

initiative

Cross selling! TS: GSM-R

ICN: GlobacomNigeria

Platforms! ICM/ICN: NexTA! ICM MP: 65/75

platform concept

Trendsettingtechnologies! Tangible innovation

areas PM@Siemens! e.g. Non-conformance-

costs

Services

New customers! Focus on winning

standards: GSM and UMTS

! Winning newcustomers

Process initiativeProcess boards for PLM, CRM and SCM

Siemens Management System within ICM initiatives and projects

Company programs

9FEB-04

FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04

Units

26 >301 2 2 11 9 9

Innovation

ICM Mobile Phones:more than 30 new products in 2004

10FEB-04

Pla

tfo

rm

cr

ea

tio

n

Mobile Phones: Example 65 generation

Lead product 4 Operator

Variants(specific industr.design, UI, etc.)

1st familyProduct

2nd familyProduct

Refresh

2months

1month

3months

< 12 months

Platform

Infrastructure:ICM and ICN NexTA platform

New applications

Hardware(Server-Blade)

Operatingsystem

Middleware (TSP7000)

Linux / Unix OS

� Radio Network Controller

� Serving GPRS Support Node

Innovation

ICM platforms synergies

11FEB-04

Innovation areas Customer benefits

Push-to-talk over GPRS/IMS*)

Convergent Online Charging

M2M communication platform / Java solutions

MobileCentrex@vantage: mobilizingenterprises

! New way to communicate

! Additional sales / lowerchurn rate reduction

! Charging integration for various service types

! Flexible chargingmodels (3rd party apps)

! Fast and cost-saving integration of new M2M applications (Java platform)

! Up to 25% cost reduction for SMEs

! New high ARPU enterprise customers

References

Vodafone, Mobilkom,

China Mobile

Innovation

TelkomselIndonesia

USD 50 mill.

TeliaSonera, Radiolinja

NetCom: ~30.000additional business

subscribers

ICM innovation areas

*) IP-based Multimedia System

12FEB-04

GSM and UMTS are the winning standards

Dec 03

Accumulated subscriberbase 189 millions

CDMA

Accumulated subscriber base

> 970 millions

Dec 03

> 180 millions newsubscribers in CY03

GSM

From 454 to 592 GSM operatorsworldwide

Source: GSM Association January 2004, CDMA Development Group January 2004

In CY03:

GSM tripled growth in U.S., now on par with CDMA

ICM: Leading position in GSM/UMTS15 UMTS launches worldwide � 9 contributed by Siemens/NECWe were the first vendor to demonstrate live EDGE calls worldwide

LAM: 12 TDMA replacements9 GSM, 3 CDMA

Customer focus

ICM is focussing on winning standards

13FEB-04

UMTS: 29 contracts

GSM/GPRS/EDGE

America MóvileBrazil

Escotel Mobile Com.India

MegaFonRussia

GlobacomNigeria

TIMItaly

Indonesia Telkomsel

Spain

Vodafone PanafonGreece

Italy

T-MobileCzech Republic

Telefónica Móviles

TCCTaiwan

H3G

Georg Koronias, CEO Vodafone Greece �The many years of successful cooperation worldwide with Siemens will be expanded now to cover UMTS network in Greece.�

�TelefónicaMóviles España' selection process involves a strate-gic and stable relationship with two of the suppliers with the widest experience and knowledge of UMTS network deployment in the world.�

Customer focus

ICM Mobile Networks: recent contract wins

13

14FEB-04

Operatormarketshare

4.7 4.5

1.2 1.7 1.50.9 1.0 1.0

MPshipments

PurchaseVolume

(GSM)

TMOVodafone Orange TIM TME O2 Cingular AWS

24.1

19.8

12.6

7.96.1

4.9 4.0 3.6

20% 23%9%

22% 24% 18% 24%28%

Top 8 operators accounted for42% of MP�s volume in FY03

Customer focus

ICM Mobile Phones: market share with leading operators

unitsin millions

15FEB-04 15

Customer focus

Leveraging synergies between IC Networks and IC Mobile

Innovation Customer focus Global competitiveness

• Common products &platforms

Innovation & trendsetting

• Common sales and go-to-market approach

• Purchasingsynergies

I and C service leadership

I and Cleadership

CarriersEnterprisesConsumers

16FEB-04

estimated cost reduction > 1 billion of euros

Software Initiative! Optimizing SW development;

R&D (Project 40)

Services/Others! Service efficiency! Others

Manufacturing! Design-to-cost (products)! Process optimization (e.g. logistics)! Factory concept

Shared services! Purchasing initiative ! CUT at ICM

PM @ Siemens! Process improvement Networks! Non-conformance-costs

~ 30 mill. of euros

~ 80 mill. of euros

~ 420 mill. of euros

~ 430 mill. of euros

~ 70 mill. of euros

Global Competi-tiveness

ICM � 1 billion productivity program

17FEB-04

Mobile infrastructurein USD flat, 0-5%

Mobile phonesin units ~ 10%

ICM market outlook: upwards potential in CY2004

18FEB-04

Appendix

18

19FEB-04

Manx Telecom

T-Mobile

Hutchison

Proximus

Radiolinja

SFR

Vodafone

tele.ring

MTC Vodafone

Austria

Austria

Austria

Bahrain

Belgium

Czech Republic T-Mobile

Finland

France

Germany

Germany T-Mobile

Greece Vodafone

HutchisonHong Kong

Isle of Man

Italy H3G

TIMItaly

P&T Luxembourg

Monaco Telecom

Taiwan CellularCorporation

Hutchison

NetCom

TMN

Amena

Telefónica Móviles

Japan J-Phone

NTT DoCoMoJapan

Luxembourg

Monaco

Netherlands T-Mobile

Norway

Portugal

Spain

Spain

Taiwan

UK

UK T-Mobile

LuXcommuni-cations S.A. Luxembourg

PTCPoland

Customer focus

ICM Mobile Networks: UMTS contracts

20FEB-04

Siemens Investor Relations Team

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

e-mail: Investorrelations@siemens.com

Fax: +49-89-636-32830

Marcus Desimoni +49-89-636-32445

Constantin Birnstiel +49-89-636-36165

Christ ina Schmöe +49-89-636-32677

Claudia Wagner +49-89-636-33693

Disclaimer:This presentation contains forward-looking statements based on beliefs of Siemens' management. Suchstatements reflect the company's current views with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results to be materially different, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services and changes in business strategy. Actual results may vary materially from those projected here. Siemens does not intend or assume any obligation to update these forward-looking statements.