Siemens

(RITU KANDPAL)
Disclaimer
This document contains statements related to our future business and financial performance and future events or to developments involving Siemens that may
constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,”
“seek,” “estimate,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered
to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on
the current expectations and certain assumptions of Siemens’ management, of which many are beyond Siemens’ control. These are subject to a number of risks,
uncertainties and factors, including, but not limited to, those described in disclosures, in particular in the chapter Risks in Siemens’ Annual Report. Should one or
more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or
achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement.
Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those
anticipated.
This document includes supplemental financial measures – not clearly defined in IFRS – that are or may be non-GAAP financial measures. These supplemental
financial measures should not be viewed in isolation or as alternatives to measures of Siemens’ net assets and financial positions or to the results of operations 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.
Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided, and percentages may not precisely reflect
the absolute figures.
© Siemens AG 2016. All rights reserved. siemens.com

Page 2 August 2016
Siemens is the engineering group that is behind many of the products and services people take for
granted in their daily lives. The list of products designed and manufactured by Siemens is almost
endless. It includes traffic lights, gas turbines, superconducting magnets in medical scanners, wind
generators, self motivation enquiring mind logical thought Skills necessary for an engineer eye for
detail automated factories as well as domestic appliances like kettles and fridges. It generates enquiring mind logical thought
about 40% of the UK’s wind energy and it hosts, supports and maintains the BBC’s website
including the development of the BBC iPlayer. The company has been operating in the UK since
1843 and employs more than 18,000 people. Across the world Siemens employs over 427,000
people.
Engineers use scientific principles to develop products or systems to solve real life problems.
Much of engineering is about innovation rather than invention. This means that engineers eye for detail Skills necessary for an engineer Organized approach
transform creative ideas into improved products, services, technologies or processes. A career
within the field of engineering is exciting and varied as the work is constantly changing.
Becoming an engineer at Siemens is about using energy, ideas and passion. It requires a range of
skills and abilities that are needed across the whole business. Siemens provides opportunities for
young people at all levels to enter the world of engineering. It recruits at a number of different
levels. For example, it offers apprenticeships for those entering
Teamworking skills. Interpersonal skills.
People can enter a career in engineering at many levels. Professional engineers usually enter after
a three-or four-year university degree. Others may enter as apprentice technicians following
Creativity
studies at school or college. However, regardless of entry level Siemens employees enjoy wide-
ranging opportunities for further education and training.

Page 3 August 2016
Third quarter of fiscal 2016 –
Key figures
Key figures Siemens (Q3 2016 | Q3 2015)

(Continuing operations; in millions of €
except where otherwise stated) Q3 2016 Q3 2015 Change in % Q3 2016 Q3 2015
Volume Liquidity
Orders 21,060 19,858 6%
Free cash flow1 1,822 684
Revenue 19,804 18,844 5%
Employees (in thousands ) Sep. 30, 2015

Profitability and capital efficiency Total (continuing operations) 348
Net income 1,372 1,376 0% Germany 114
Return on capital employed (ROCE)1 13.7% 14.9% Outside Germany 234
1 Continuing and discontinued operations
Results of operations (Q3 2016)

Industrial Business
Power Wind Power Energy Building Mobility Digital Process Healthineers Financial
and Gas and Management Technologies Factory Industries Services
(in millions of €) Renewables and Drives (SFS)
Orders 4,512 2,729 3,102 1,658 1,112 2,563 2,117 3,382 238
Revenue 4,321 1,722 2,894 1,536 1,795 2,519 2,247 3,230 238
Profit 480 143 240 140 158 395 101 534 139
Profit margin 11.1% 8.3% 8.3% 9.1% 8.8% 15.7% 4.5% 16.5% 17.4%2
2 Return on equity (RoE)

Page 4 August 2016
Fiscal 2015 –
Key figures
Key figures Siemens FY 2015 Revenue by industrial business

(Continuing operations; in millions of €
except where otherwise stated) FY 2015 FY 2014 Change in % Healthineers 17% Power and Gas 17%
Volume Wind Power and
Process Industries
Orders 82,340 77,657 6% Renewables 7%
and Drives 13%
Revenue 75,636 71,227 6% Energy
Management 16%
Digital Factory 13%
Profitability and capital efficiency Building
Net income1 7,380 5,507 34% Mobility 10% Technologies 8%
Return on capital employed (ROCE)1 19.6% 17.2%
Not included: Financial Services (SFS)
Liquidity
Free cash flow1 4,674 5,201 Revenue by Region
Asia, Australia 20% Europe, CIS2, Africa,
Employees (in thousands) Sep. 30, 2015 Sep. 30, 2014 Middle East
(without Germany) 36%
Total (continuing operations) 348 338
Germany 114 114
Outside Germany 234 224 Americas 29%
Germany 15%
1 Continuing and discontinued operations 2 Commonwealth of Independent States

Page 5 August 2016
Global presence –
Close to customers all over the world
Germany Europe (excluding Germany), CIS,
Africa, Middle East
€11.2 billion 15% Share
of total €27.6 billion 36% Share of

114,000 33% worldwide total
98,800 28% worldwide
Americas
€21.7 illion 29% Share of
total
b 21% worldwide
73,500
Asia, Australia
€15.1 billion 20% Share
of total
Revenue by customer location Employees as of September 30, 2015
All figures refer to continuing operations. CIS: Commonwealth of Independent States
61,500 18% worldwide

Page 5 August 2016
Celebrating the bicentennial birthday of Werner von Siemens
Werner von Siemens:

At a glance
1816 – 1892
Werner von Siemens was a responsible entrepreneur and far-sighted
inventor whose name soon became a household word around the
world. Far ahead of his time, he recognized and fostered the link
between science and technology.
“In my youth, I dreamed of founding an

enterprise of world standing comparable to that
of the Fugger dynasty …”
Werner von Siemens, 1887

Page 6 August 2016
Milestones of a 170-year history
1866 1959 1983 2012

1816 – 1892 The dynamo makes SIMATIC makes First magnetic resonance Test operation of the
Company founder, electricity part of Siemens a leader in imaging scanner goes world’s largest rotor for
visionary and inventor everyday life automation technology into operation offshore wind turbines
1847 1925 1975 2010 2015

Pointer telegraph Siemens electrifies Breakthrough of TIA Portal takes Sinalytics puts
lays the foundation the Irish Free State high-voltage direct- automation a stage digital services for
of Siemens as a with a hydroelectric current (HVDC) further industry on a new
global company power plant. transmission footing

Page 7 August 2016
Our new claim

Page 8 August 2016
What our new claim stands for
"Ingenuity" stands for innovation, engineering and genius. For us, it also
includes unity: We are united in our efforts, and we are committed to partnering
with our customers.
"For life" relates to our role in society: to make real what matters.
"Ingenuity for life" is therefore our unrelenting drive and promise to create value
for customers, employees and society.

Page 9 August 2016
Megatrends –
Challenges that are transforming our world
Digitalization Urbanization
By 2020, the digital universe will By 2050, 70 percent of the world's
reach 44 zettabytes – a tenfold population will live in cities
increase from 2013.1 (today it’s 54 percent).3
Demographic change Globalization

The earth’s population will increase The volume of world trade nearly
from 7.3 billion2 people today to doubled between 2005 and 2014.5
9.7 billion2 in 2050. Average life
expectancy will then be 83 years.2
Sources:
1. IDC, The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things,
Climate change April 2014
2. United Nations, Department of Economic and Social Affairs, Population Division (2015).
According to scientists, in the World Population Prospects: The 2015 Revision, Key Findings and Advance Tables.
summer of 2016, the Earth's Working Paper No. ESA/P/WP.241
3. United Nations, World Urbanization Prospects. The 2014 Revision, New York, published 2015
atmosphere had the highest CO2 4. SCRIPPS INSTITUTE OF OCEANOGRAPHY, “The Keeling Curve”, July 30th, 2016
concentration in 800,000 years.4 5. UNCTAD Statistics, Values and shares of merchandise exports and imports from 1948 to 2014,
November 10, 2015

Page 10 August 2016
Digitalization at Siemens –
Productivity lever for our customers
Improved productivity, Greater flexibility Higher availability

shorter time-to-market and stability and efficiency
Cooperation
and mobile IT
Design and engineering
operation services
Smart data and
analytics
Cloud
technologies
Linking the virtual and real worlds along the entire value chain of customers
Connectivity and
Web of Systems
Vertical software Digital services
Revenue, FY 2015 €3.1 billion €0.6 billion
Cyber security Profitability ++ +++
Market growth +9% +15%

Page 11 August 2016
Vision 2020 –
A consistent company concept
E-A-D – a complete system
With our positioning along the electrification

value chain, we have know-how that extends
from power generation to power transmission,
from power distribution and smart grids to the
efficient application of electrical energy.
With our outstanding strengths in
automation, we’re well equipped for the
future and the age of digitalization.

Page 12 August 2016
Vision 2020 –
Electrification, automation and digitalization
Global trends Market development (illustrative)

Digital transformation
A world connected by complex ~7–9%
and heterogeneous systems Market growth
Globalization Digitalization
Global competition impacts ~4–6%
productivity and production Automation Market growth
locations
Urbanization Electrification ~2–3%

Cities intensify investment in Market growth
infrastructure
Demographic change
Needs increase as populations 2014 Medium-term – 2020
grow and age
Climate change Power transmission, Efficient

Power Efficient use of energy
Greater resource efficiency power distribution healthcare
generation
in an electrified world and smart grids delivery

Page 13 August 2016
Vision 2020 –
Seven goals
Implement stringent Execute financial Be a partner of Foster ownership culture

corporate governance target system choice for customers
Goal: Goal: Goal: Goal: Goal:

Cut costs by ROCE of Growth
~1 20% > ≥ 20% ≥ 50%

to improvement increase in the
billion €
by 2016 15% most relevant
competitors
1 in Net Promoter
Score
number of employee
shareholders
Create value sustainably Expand global management Be an employer of choice
Goal: Goal: Goal:

Tap growth fields and get
underperforming
businesses back on track
> 30% > 75%
of Division and approval rating in the
Business Unit categories “Leadership” and
management “Diversity” in the Siemens
outside Germany Global Engagement Survey

Page 14 August 2016
Vision 2020 –
Selected growth fields
Flexible and small gas turbines Digital-twin software
Key sectors in process industries

Image-guided therapy and
molecular diagnostics
Offshore wind power

Distribution grid automation
and software
Urban and
interurban mobility
Business analytics and data-driven

services, software, and IT solutions

Page 15 August 2016
Vision 2020 –
Five elements create Ownership Culture
Equity Values
Supports a sense of – our foundation:
long-term-, output- and • Responsible
profit-orientation.
• Excellent
Ownership • Innovative
culture
People orientation Behaviors

• Empowerment & trust • Respect
• Honesty, openness & • Focus
collaboration • Initiative & execution
Leadership
• Be bold, decisive & courageous
• Siemens matters
• Motivate & engage

Page 16 August 2016
Vision 2020 –
Milestones for the implementation of our company concept
Value
Scale up
Strengthen core
Drive performance
Foster ownership culture and leadership based on common values
2015 2016 2017 2018 2019 2020
Operational Accelerated growth and

Strategic Optimization
direction consolidation outperformance

Page 17 August 2016
Vision 2020 –
Innovation is our lifeblood
Investment in research and development –

the basis for growth and competitiveness
€
€
€4.5 billion 32,100 17,500
R&D expenditures1 R&D employees1 Software engineers1
Inventions and patents – University partnerships –

securing the future our edge in knowledge
7,650 3,700 9 16
Inventions1 Patent first filings1 Center of Knowledge Principal partner
Interchange (CKI) universities
universities

Page 18 August 2016
The next generation of innovation –
next47
Selected innovation fields
Artificial
Distributed intelligence
electrification
Connected Block-chain
Approx. €1 billion (e-)mobility applications
eAircraft
in funds over
5 years Autonomous
machines

Page 20 August 2016
Vision 2020 –
Being an employer of choice
Siemens’ “Europeans@Siemens”
Siemens invests over
program enables more than 100
€250 million each year
young people from EU countries as
in the training and
well as Turkey and Egypt to
education of employees.
participate in work-study programs
in Germany in the fields of
electronics and mechatronics.
153,000 Siemens
employees own company In FY 2015, around 7,000 young Siemens
shares and are thus co- employees were enrolled in work-study
owners of the company. programs that combine academic learning
with practical experience.

Page 21 August 2016
Corporate social responsibility –
Embracing our responsibility to society
Supporting refugees is part of
our responsibility to society. For Our social commitment takes
example, we offer professional many forms, including
orientation through internships, donations, foundations,
provide accommodations, make disaster relief, employee
donations and hold preparatory volunteering activities,
classes for young refugees. sponsorships, educational
programs, etc.
We train employees locally. Since 2008, we have reserved 10 percent of

In India, for example, we plan to train our apprenticeships in Germany for
108 apprentices a year. In Egypt, we disadvantaged young people. About 90
are building a training center for percent of these trainees complete their
employees and customers. In South courses successfully. Vocational training and
Africa, we built and equipped the integration are key enablers for overcoming
Mandela School of Science & social exclusion.
Technology.

Page 22 August 2016
Sustainability –
Siemens aims to be net-carbon neutral by 2030
2.2 Mt
-50% -100% We are investing over €100 million in measures to reduce
CO2
our carbon footprint
Drive energy efficiency program
Increase energy efficiency in factories, employ sustainable technologies
in new buildings
Leverage distributed energy systems

Reduce energy costs and CO2 emissions
Reduce fleet emissions

Utilize potential of low-emission cars in fleet,
including electro mobility
Purchase green energy
Move toward a significantly cleaner power mix with a strong
2014 2020 2030 focus on renewable energy and highly efficient gas
Electricity
Heating / Process heat Independent auditors will monitor and report
Fleet
on progress of implementation.
Other

Page 23 August 2016
Vision 2020 –
The leadership team
Roland Busch Lisa Davis Klaus Helmrich Janina Kugel Siegfried Russwurm Ralf P. Thomas
and Chief Executive Labor Director, Chief Technology Chief Financial
Officer (CEO) Chief Diversity Officer
Officer (CTO) Officer (CFO)
Corporate Asia Americas Africa

Development
Australia Europe Corporate Technology
Governance and Markets Power and Gas
Energy Management Digital Factory CIS1 Controlling and Finance
Wind Power and Renewables
Communications Building Technologies Process Industries Middle East Global Services

Power Generation
Legal and Compliance Mobility Services and Drives Human Resources Healthineers Financial Services
Willi Meixner Markus Tacke Randy Zwirn Ralf Christian Matthias Jochen Eickholt Jan Mrosik Jürgen Brandes Bernd Montag Roland
CEO CEO CEO CEO Rebellius CEO CEO CEO CEO Chalons-Browne
CEO CEO
Process
Wind Power and Power Generation Energy Building Industries and Financial
Power and Gas Renewables Services Management Technologies Mobility Digital Factory Drives Healthineers Services
1 Commonwealth of Independent States

Page 24 August 2016
Power and Gas –
Powerhouse in power generation
The Power and Gas Division offers utilities, independent power producers,
engineering, procurement and construction companies (EPCs), and oil and
gas customers a broad spectrum of products and solutions for the
environmentally compatible and resource-saving generation of power from
fossil fuels and renewable sources of energy and for the reliable transportation
of oil and gas.
siemens.com/ar/power-gas
FY 2015 FY 2014
Orders in millions of € 15,666 13,996
Revenue in millions of € 13,193 12,720
Employees (as of September 30, 2015) in thousands 50 42

Page 25 August 2016
Wind Power and Renewables –
World market leader in offshore wind power
The Wind Power and Renewables Division is a leading supplier of reliable,

environmentally friendly, and cost-efficient renewable energy solutions. Driving
down the cost of wind power is the key target as Siemens strives to make
renewable energy fully competitive with conventional energy sources.
Since they are especially reliable and cost-efficient, the wind turbines offered
by Siemens Wind Power and Renewables are a worthwhile investment both
from a financial and an environmental perspective. With over 31,000
megawatts of wind power installed, the Division delivers clean, renewable
energy from onshore and offshore installations all over the world.
siemens.com/ar/wind-renewables
FY 2015 FY 2014

Page 26 August 2016
Energy Management –
Partner for efficient power infrastructure
The Energy Management Division is one of the leading global suppliers of

products, systems, solutions and services for the economical, reliable and
intelligent transmission and distribution of electrical power. As the trusted
partner for the construction and expansion of an efficient and reliable power
infrastructure, the Energy Management Division provides utility companies
and industrial customers with a portfolio that meets their needs.
The portfolio ranges from systems for the low-voltage and distribution power
grid level to smart grids and energy automation solutions to power supplies for
industrial plants and high-voltage transmission systems.
siemens.com/ar/energy-management
FY 2015 FY 2014

Page 27 August 2016
Building Technologies –
World leader for building tech
Technologies
The Building Technologies Division is a leading global provider of safe,

energy-efficient and environmentally friendly building and infrastructure
technologies.
As a technology partner, consultant, service provider, system integrator and
supplier, the Division offers solutions for fire safety, security, building
automation, heating, ventilation and air conditioning (HVAC) as well as energy
management.
siemens.com/ar/building-technologies
FY 2015 FY 2014
Page 27 August 2016
Mobility –
Transportation solutions for the future
The efficient and integrated transportation of people and goods by rail and
road – the Mobility Division bundles all of Siemens’ transportation-related
products, solutions and services.
The Division’s five business units – Mobility Management, Turnkey Projects &
Electrification, Mainline Transport, Urban Transport and Customer Services –
provide modern, interconnected and IT-based mobility. They have the know-
how to make road traffic flow more smoothly and quickly, to make trains more
environmentally friendly and efficient and to make train schedules and freight
shipments more reliable.
siemens.com/ar/mobility
FY 2015 FY 2014

Page 28 August 2016
Digital Factory –
Partner of the manufacturing industry worldwide
The Digital Factory (DF) Division offers a comprehensive portfolio of

seamlessly integrated hardware, software and technology-based services to
support manufacturing companies worldwide in enhancing the flexibility and
efficiency of their production processes and in reducing the time to market of
their products.
The Division‘s objective is to provide a hardware and software portfolio that
seamlessly links product development, production and suppliers so that
ultimately a complete digital representation of the entire physical value chain is
achieved. The platform for this is called “Digital Enterprise.“
siemens.com/ar/digital-factory
FY 2015 FY 2014

Page 29 August 2016
Process Industries and Drives –
Increased productivity, shorter time to market
With innovative, integrated technologies for the entire lifecycle, the

Process Industries and Drives (PD) Division helps customers measurably
increase productivity, shorten time to market, and improve the reliability,
safety, and efficiency of products, processes and plants.
All over the world, customers benefit from future-proof automation, drive
technology, industrial software, and services based on best-in-class
technology platforms – such as Totally Integrated Automation (TIA) and
Integrated Drive Systems (IDS).
siemens.com/ar/process-industries
FY 2015 FY 2014

Page 30 August 2016
Financial Services –
Financial solutions for business customers
The Financial Services Division (SFS) provides business-to-business financial

solutions. Around the globe, we support customer investments with project
and structured financing as well as leasing and equipment finance.
The success of Financial Services is built on a unique combination of risk
competence, technological expertise and reliable financial resources. Through
our international network of SFS companies, we provide – subject to the legal
requirements in the respective country – a great variety of financial solutions.
siemens.com/ar/sfs
FY 2015 FY 2014
Allocated equity in millions of € 2,417 2,148
(as of September 30, 2015)

Page 31 August 2016
Healthcare –
Next-generation medical technology
Siemens Healthineers is one of the world's largest suppliers of technology for

the healthcare industry and a leader in medical imaging, laboratory
diagnostics and advanced image-guided therapy applications. The company is
also active in the field of digital and enterprise services as well as molecular
diagnostics.
Siemens Healthineers aims to blaze new trails for healthcare providers
worldwide – as their partner in the quest to improve medical outcomes and cut
costs.
siemens.com/ar/healthcare
FY 2015 FY 2014

Page 32 August 2016
A strong partner all over the world –
Germany
− The Airbus Group and Siemens have reached a long-term collaboration

agreement in the area of hybrid-electric propulsion systems. A team of
about 200 employees has been set up to develop electric aviation
technologies. Siemens will be bundling the team’s activities in its new
next47 unit.
− Siemens has received an order from E.ON to supply, install, and
commission 60 direct-drive offshore wind turbines with a capacity of
about six megawatts each. The Arkona wind farm in the Baltic Sea,
which will supply electricity for up to 400,000 households in Germany,
is scheduled to go into operation in 2019.
− In April 2016, Siemens’ gas turbine facility in Berlin delivered its 1,000th gas
turbine. More than 90 percent of the turbines have been exported. The total
capacity of the turbines produced at the plant amounts to some 220
gigawatts – enough power to supply about one billion people with electricity.
FY 2015 FY 2014
Revenue (from customers in Germany) in millions of € 11,244 10,781
Employees
(As of September 30, 2015; continuing operations) in thousands 114 114

Page 33 August 2016
Europe, CIS, Africa, Middle East
− United Kingdom:
For the East Anglia ONE project, Siemens will supply, install, and
commission 102 seven-megawatt offshore wind turbines. With a total
installed capacity of 714 megawatts, this is Siemens’ largest project of its
kind to date. The wind farm, which is scheduled to go online in 2020, will
supply power for about 500,000 households in the UK.
− Israel:
Siemens has received a contract for the turnkey installation of two industrial
combined cycle power plants, each with a capacity of 70 megawatts – the
first order of its kind from Israel.
− Egypt:
Siemens is modernizing Cairo’s rail network. Interlockings along some 260
kilometers of track will be replaced by modern, centrally controlled
electronic systems. Commissioning is planned for 2020.
FY 2015 FY 2014
Revenue (from customers in Europe, CIS,
in millions of € 38,799 38,449
Africa, Middle East)
Employees
(As of September 30, 2015; continuing operations) in thousands 213 211

Page 34 August 2016
The Americas
‒ U.S.:
Siemens is building a combined cycle power plant in Lordstown, Ohio, on a
turnkey basis. When completed in 2018, the plant will have a total capacity
of 940 megawatts and supply electricity to more than 800,000 households.
The order is worth more than $800 million and includes a long-term service
contract.
‒ Con Edison (the power utility for the greater New York City area) is using
six mobile resilience transformers from Siemens, the first in the world.
Developed in a collaborative project, these transformers cut the time
required to replace transformers – due to weather damage or other
unforeseen events, for instance – from months to days.
‒ Bolivia:
Siemens has signed binding agreements to expand three thermal power
plants belonging to the state utility Ende Andina SAM (planned increase:
one gigawatt). FY 2015 FY 2014
Revenue (from customers in the Americas) in millions of € 21,702 18,494
Employees
(As of September 30, 2015; continuing operations) in thousands 73.5 70

Page 35 August 2016
A Strong partner all over the world –
Asia, Australia
‒ Indonesia:
During Indonesian President Joko Widodo’s visit to Germany in April 2016,
Siemens signed two memoranda of understanding with the state energy
company PLN that call for jointly installing 500 megawatts of distributed
power generation capacity and expanding Indonesia’s power grid.
‒ Thailand:
Bangkok’s Mass Transit System Public Company has commissioned a
consortium comprising Siemens and Bozankaya (Turkey) to supply 22
four-unit metro trains. Siemens will also be responsible for the service
and maintenance of the trains for 16 years.
‒ Japan:
Siemens is supplying 16 wind turbines with a total capacity of 50
megawatts for the Setana Osato wind farm on the Japanese island
of Hokkaido.
FY 2015 FY 2014
Revenue (from customers in Asia, Australia) in millions of € 15,135 14,283
Employees
(as of September 30, 2015; continuing operations) in thousands 62 62
siemens.com
August 2016
Asia, Australia
Siemens’ heritage in India dates right back to 1867 when it began laying the world’s first undersea
cable from London to Kolkata.
- INDIA Siemens set up a branch in India as early as 1922, in Mumbai and Kolkata. Though the
company’s assets were confiscated during World War II as enemy property forcing it to shut
operations, Siemens re-entered India after the war. It started operations as the “Siemens Division” of
“Protos Engineering", a local contracting company. Siemens was engaged in sales and service of our
own brand of switchgear and switchboards. Its first workshop was located under the bridge of, what
is today, the Mahalaxmi Railway Station in Mumbai.
In 1957, Siemens was incorporated as a company under the Indian Companies Act as Siemens
Engineering & Manufacturing Co. of India Pvt. Ltd. In 1961, Siemens became a public limited
company with restricted external shareholding and was listed in the Bombay Stock Exchange a
decade later.
siemens.com
August 2016
Asia, Australia
Curriculum Topic
1.MOTIVATION
Motivation stimulates people and encourages them willingly to put more effort into doing something. Well-motivated
employees will feel fulfilled and happy in the workplace. Additionally, they are likely to be more productive and produce work
of a higher quality. This case study focuses upon three different theories of motivation and uses these to illustrate how
employees are motivated within an engineering environment at Siemens. Motivated individuals are influenced by a number of
different factors. Initially, everybody has basic needs, such as for food or accommodation, which pay can provide. However,
there are many other different factors that motivate individuals. A creative environment, such as that provided by engineering,
can be very stimulating. Some staff at Siemens thrive on the problem-solving aspect of their roles and respond to challenges.
Other employees find the varied nature of the work motivating – having the opportunity to try different roles. Siemens
employees also value the fact that they are allowed to be imaginative and can influence their own work. The structure of
Siemens motivates individuals by empowering them to improve processes. Siemens provides the sort of environment where
workers can learn new things and are given the opportunity to progress within the business. This culture demonstrates that
Siemens values its employees and helps to recruit the next generation of engineers.
siemens.com
August 2016
Asia, Australia
2. Scientific management
Frederick Taylor looked at work within a production setting. He was one of the earliest advocates of professional management
and believed that the relationship between task and workers’ cooperation could be standardised. Taylor’s scientific
management theory involved observing workers to see how they carried out tasks. As a result of his work tasks were broken
down into smaller scale units of work, requiring little understanding from employees of what they were doing. This job
specialisation meant that workers undertook tasks with a narrowly defined range, for which they were rewarded according to
how much they produced. Payment systems rewarded those who produced the most. Taylor’s way of working is very different
from the needs of the modern working environment. However his work has helped form a scientific understanding of how
work is organised. Today, engineering needs people with greater capability and flexibility. Engineering staff at all levels need
to use their knowledge and skills in many different situations. At Siemens, the culture encourages employees to become more
involved in their work, suggesting and implementing improvements. Control as originally suggested by Taylor, which
removed personal responsibility, is not what modern engineering is about. Controls still exist but the person doing the job is
encouraged to work as part of a team and become involved in deciding the best way to do or improve a task. This is because in
engineering there is a continuous need to develop new and better products and processes. They cannot be confined to one way
of doing things. For example, a new product or process may open the way to new markets.
siemens.com
August 2016
Asia, Australia
3.Hierarchy of needs.
One of the most famous theorists on motivation is Abraham Maslow. In 1954 he developed a ‘hierarchy of needs’. This he
represented as a triangle. The most basic needs are at the bottom. The more complex needs are at the top.
S
e
l
At the bottom of the hierarchy are the basic needs which drive people to work. This
f
-
f
includes the need for food, water, warmth, shelter and clothing. Once these needs are
u
l
f
met, individuals then want safety and security. This includes physical security at
i
m work. It also includes safe working practices, job security and financial security.
e
n
t
Social needs are all about groups and belonging. Socialising with a group of friends
(
or with work colleagues fulfils social considerations. In addition, employees like to
Self-fulfiment (self- s
actualisation) e feel part of an organisation. Self-esteem needs might include the rewards from a
Self-esteem
needs Social needs l workplace. It might include a benefits package or even status within the workplace.
Safety/security needs
Physiological needs
f
-
Self-fulfilment is about working to one’s full potential. This would involve doing
a
something challenging, creative or interesting.
c
l siemens.com
i
August 2016
Asia, Australia
Siemens provides the opportunity for employees to fulfil their higher-order needs. For skilled, creative workers, like
engineers, these are likely to be of great importance. Esteem is about having self-respect and the respect of others. Feeling that
one’s work is making a difference can improve self-esteem. Recognition of an
employee’s achievements by the employer also helps to meet esteem needs. For example, Siemens runs schemes in which
suggestions and projects for improvements are rewarded. This could be financially, either individually or as part of a team, or
in terms of peer or management recognition of their achievements.
Self-actualisation is concerned with workers fulfilling their potential. Engineering work allows employees to do this by
enabling them to get involved and take responsibility for their own jobs. Individuals can seek to make improvements and
changes. An engineering environment generates excitement and
challenges. Original solutions and ideas are required to solve problems on a regular basis. These appeal to the higher needs of
employees. It is also possible to use technology to identify new ways of working and new processes. Siemens offers
engineering staff training and development opportunities. This links with
self-actualisation as it helps engineers to extend their capabilities which may lead to a progression up the career ladder.
Training and development also helps individuals to meet the changing demands of the business’ global markets.
siemens.com
August 2016
Asia, Australia
4. Satisfiers/dissatisfiers
Frederick Herzberg also believed that people have needs that should be satisfied within the workplace. He felt that if people
had their needs satisfied they would be productive employees. Herzberg’s research focused upon the activities of engineers
and accountants. It resulted in his two-factor theory. Herzberg theorised that there were two influences that affected how
people felt about their job.
1. Motivators (or satisfiers) There are a number of aspects of any workplace that give individuals job satisfaction. The nature
of the work itself is very important. Some individuals just love what they do. Things that satisfy people in the workplace and
make them happy are:
• The opportunity for personal development
• Achievement
• Recognition
• Promotion
• Responsibility
• Levels of responsibility.
siemens.com
August 2016
2. Hygiene factors (dissatisfiers)
Hygiene factors are things that can upset employees in the workplace. They are outside the control of the
individual but
have a huge influence on the roles of each worker. For example:
• Company policy may frustrate some employees and be viewed to some as a hindrance
• Bureaucracy or needless paperwork may be considered to be a barrier to getting a job completed
• Sometimes working conditions are not thought of to be suitable
Other factors may be poor salary or staff feeling they are not valued nor consulted.
siemens.com
August 2016
5.CONCLUSION
Motivating employees is an important role for managers. In the past, as the work of Frederick Taylor illustrated, motivation
theory linked very closely to pay and output. Individuals now need to be motivated in a completely different way. They
have higher order needs. This was illustrated through the work of Abraham Maslow. Frederick Herzberg discovered there
are also elements within the workplace that both satisfy and dissatisfy employees. This case study illustrates how the work
of Maslow and Herzberg applies in a modern engineering environment like Siemens more than Taylor’s. Lower order
needs are met by the organisation providing good pay and a safe working environment. Higher order needs are also
provided for its engineers through training and development, as well as the opportunity to undertake creative and
challenging work. Siemens employees are motivated by being recognised for their achievements and by having
opportunities for progression, regardless of the level at which they started working for Siemens.
siemens.com
August 2016
References
Siemens AG
.
https://www.mimeo.com/
case-studies/siemens-
cost-savings/
https://new.siemens.com
/global/en/company/abo
ut.html
siemens.com/about
siemens.com/press
siemens.com/investors
siemens.com/innovation
siemens.com/careers
siemens.com
August 2016

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(RITU KANDPAL)

© Siemens AG 2016. All rights reserved. siemens.com

© Siemens AG 2016. All rights reserved. siemens.com

Key figures Siemens (Q3 2016 | Q3 2015)

Employees (in thousands ) Sep. 30, 2015

1 Continuing and discontinued operations

Results of operations (Q3 2016)

2 Return on equity (RoE)

© Siemens AG 2016. All rights reserved. siemens.com

Key figures Siemens FY 2015 Revenue by industrial business

1 Continuing and discontinued operations 2 Commonwealth of Independent States

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of total €27.6 billion 36% Share of

© Siemens AG 2016. All rights reserved. siemens.com

Werner von Siemens:

“In my youth, I dreamed of founding an

© Siemens AG 2016. All rights reserved. siemens.com

1866 1959 1983 2012

1847 1925 1975 2010 2015

© Siemens AG 2016. All rights reserved. siemens.com

© Siemens AG 2016. All rights reserved. siemens.com

© Siemens AG 2016. All rights reserved. siemens.com

Demographic change Globalization

© Siemens AG 2016. All rights reserved. siemens.com

Improved productivity, Greater flexibility Higher availability

© Siemens AG 2016. All rights reserved. siemens.com

E-A-D – a complete system

With our positioning along the electrification

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Global trends Market development (illustrative)

Urbanization Electrification ~2–3%

Climate change Power transmission, Efficient

© Siemens AG 2016. All rights reserved. siemens.com

Implement stringent Execute financial Be a partner of Foster ownership culture

Goal: Goal: Goal: Goal: Goal:

~1 20% > ≥ 20% ≥ 50%

Create value sustainably Expand global management Be an employer of choice

Goal: Goal: Goal:

© Siemens AG 2016. All rights reserved. siemens.com

Flexible and small gas turbines Digital-twin software

Key sectors in process industries

Offshore wind power

Business analytics and data-driven

© Siemens AG 2016. All rights reserved. siemens.com

People orientation Behaviors

© Siemens AG 2016. All rights reserved. siemens.com

Foster ownership culture and leadership based on common values

2015 2016 2017 2018 2019 2020

Operational Accelerated growth and

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Investment in research and development –

Inventions and patents – University partnerships –

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Selected innovation fields

Approx. €1 billion (e-)mobility applications

© Siemens AG 2016. All rights reserved. siemens.com

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We train employees locally. Since 2008, we have reserved 10 percent of

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Leverage distributed energy systems

Reduce fleet emissions

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