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Corruption and its Prevention - Shared Responsibility The Compliance Program of Siemens and affiliated Companies in Czech Republic Jürgen Schmidt

Regional Compliance Officer

Prague, November 12th, 2008

Compliance is an important component of our company culture and our values!

Our values Responsible Our Values – for a global business

Committed to ethical and responsible actions

Excellent

Achieving high performance and excellent results

Innovative

Being innovative to create sustainable value

Page 3

Responsible Our principles for being responsible We conduct business in a truthful and transparent manner We foster health and safety We respect the dignity of all people We obey the law We are fair in our relationships with competitors and stakeholders We honor commitments We respect property

Responsible

CC Page 4

Compliance at Siemens

 Compliance at Siemens means that business activities are based on observation of the laws and relevant internal regulations.  Siemens expects all management and employees to obey the law and will not tolerate any violations.

Page 5

Current Situation

 Public prosecutors and other government authorities in jurisdictions around the world are conducting investigations of Siemens AG and its consolidated subsidiaries and certain of its current and former employees regarding allegations of public corruption, including criminal breaches of fiduciary duty including embezzlement, as well as bribery, money laundering and tax evasion, among others.

 Siemens has mandated Debevoise & Plimpton LLP, an external law firm, to conduct an independent and comprehensive investigation to determine whether anti-corruption regulations have been violated and to conduct an independent and comprehensive assessment of the compliance and control systems of Siemens. Debevoise is informing SEC and DOJ on a regular basis throughout the investigation.

Compliance is the top priority Prevent…

… through clear rules, training programs, communication and clear responsibilities monitoring

Detect…

… compliance violations through audits, reviews and

Act…

… with rigorous and appropriate measures in cases of compliance violations  Uniform, seamless and mutually complementary legal, compliance and audit processes worldwide  Compliance must be part of our company culture and firmly anchored in all business processes  Unlimited commitment to integrity and responsible action Page 7

Compliance – Progress Report (Q3 FY 2008) Prevent Training Participation web-based training 1) Target: ~120.000

~18,000 ~31,000 ~81,000 ~87,000 ~108,000 Q3 FY 07 Q4 FY07 Q1 FY08 Q2 FY08 Q3 FY08

Participation in-person training 1) Target: ~50.000

~980 ~1,200 Q3 FY07 Q4 FY07 ~1,400 ~14,800

~ 30,000

Q1 FY08 Q2 FY08 Q3 FY08

Helpdesk "Ask us" 3,077 questions (cumulative, status 07-09-08) 746 841 1,142 "Tell us" & Ombudsman

Not substantiated Substantiated

168 198 2) 61

37 24

114

41 73 52 116 Q4 Q1 Q2 Q3 FY07 FY08 FY08 FY08 Q1 FY08 Q2 FY08 Q3 FY08

Detect New internal compliance investigation 62 52 28

Q1 FY 08 Q2 FY 08 Q3 FY 08

123 Amnesty program 34 10 9

3 67

Amnesty requests In progress Not necessary Others Amnesty rejected Amnesty granted

Implementation of anti corruption compliance program 18% 28% 54%

Implemented (incl. 160 high-risk/ most important entities) Implementation ongoing Implementation set up

Compliance Personal weltweit Compliance staff worldwide 86

FY 2006

310

Feb 08

~490

Oct 08

Collective action against corruption

June 2008: To help companies fight back against the insidious impact of corruption, a practical guide and a comprehensive web portal were launched. The portal outlines proven methods of fighting marketplace corruption through the collective action of businesses and other stakeholders. The initiative comprises NGOs and MNCs incl. UN Global Compact, Transparency International, Global Advice Network, CIPE, Grant Thornton and Siemens.

1) Cumulative 2) “Ask us” started Sept. 07 3) Individuals who haven’t replied despite multiple inquiries Source: Compliance Organization, CC CC

Page 8 CC

A comprehensive Compliance Program: Examples of important measures PREVENT DETECT RESPOND Tone from the top

Top priority with clear lines of responsibility. Compliance is part of the leadership and corporate culture

Independent investigation

By Debevoise & Plimpton LLP as well as an assessment of the company’s compliance and control systems

Helpdesk

Outlet for the reporting of unlawful activities and violations of the Siemens Business Conduct Guidelines or other relevant policies (=

Tell Us

). Also includes a function for the answering of compliance questions (=

Ask Us

)

Ombudsman

Neutral individual as a communication channel for the reporting or discussion of compliance issues on a confidential and anonymous basis

No tolerance

Consequences arising from misconduct

Continuous improve ment

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A comprehensive Compliance Program: Examples of important measures PREVENT Business Conduct Guidelines

Corporate code of conduct and core of the Compliance Program

Training

Formal program of anti-corruption and other legal compliance training

Centralization of the Payment System

Siemens is in the process of strengthening internal controls through centralization of its bank accounts and cash payment systems.

Business Consulting Agreements

Prior written consent of two Group Executive Management members and the relevant Corporate Compliance Officer of Siemens AG.

Continuous improve ment

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Our Goal: Benchmark for Compliance and Transparency Tone from the top No tolerance

on a global basis for illegal behavior

Thorough and independent investigation

of past compliance cases

Compliance Program

with focus on “Prevent – Detect – Respond” Clear

commitment of management

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Restore trust

"I have made the topic of compliance one of my top priorities.

There will be no compromises here: Illegal and improper behavior will not be tolerated under any circumstances."

(Peter Löscher, President and CEO of Siemens AG) Munich, July 2007

Munich, July 2007