DGAP-Ad-hoc: Siemens Aktiengesellschaft / Key word(s): Strategic Company Decision Siemens Aktiengesellschaft: Siemens sets future course with Vision 2020+ 01-Aug-2018 / 18:26 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Munich, August 1 2018 Disclosure of an inside information according to Article 17 MAR Siemens sets future course with Vision 2020+ Today, the Supervisory Board of Siemens AG approved the decision of the Managing Board to set the course for long-term value creation through accelerated growth and stronger profitability with a simplified and leaner company structure. The main aim of the Vision 2020+ company strategy is to give Siemens' individual businesses significantly more entrepreneurial freedom under the strong Siemens brand in order to sharpen their focus on their respective markets. Plans also call for strengthening the company's growth portfolio through investments in new growth fields such as IoT integration services, distributed energy management and infrastructure solutions for electric mobility. The concentrated expansion of industrial digitalization will make a further contribution. As a result, both the annual revenue growth rate and the profit margin of the company's Industrial Business are expected to increase by two percent over the medium term. Basic earnings per share are expected to grow faster than revenue over the medium term. The organizational level of the current Divisions will be eliminated, the regional organization realigned to further increase its customer orientation, and company headquarters streamlined. Below the Group level, there will be three Operating Companies and three Strategic Companies. The new structure will go into effect at the start of the new fiscal year on October 1, 2018. Implementation will proceed step-by-step and is to be completed by March 31, 2019. The company's Building Technologies Division (BT), Energy Management Division (EM), Power and Gas Division (PG), Digital Factory Division (DF) and large parts of its Process Industries and Drives Division (PD) will be combined to form three new Operating Companies. The Business Units of the company will also be set up newly in a more focused manner. The current Siemens Financial Services Division will be bundled together with Global Business Services and Real Estate Services to form the Service Companies. The optimization of Siemens' service portfolio is expected to considerably enhance efficiency. Siemens Corporate Technology and, among other things, the company's small and medium enterprises (SMEs) will be centrally managed by Corporate Development. On the one hand, the SMEs comprise equity stakes that are currently held in centrally managed portfolio activities (CMPA). On the other hand, they also include operating businesses. In the future, Company Headquarters will be considerably leaner, and some of its tasks and employees will be transferred to other units. Headquarters will focus on core tasks (Finance, Governance & Markets, Legal and Compliance, Human Resources and Communications). With the newly formed Business Unit for IoT Integration Services Siemens is expanding its IoT platform offering to provide comprehensive support to customers in their digital transformation. Disclaimer This document contains statements related to our future business and financial performance and future events or 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 the 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 - in the applicable financial reporting framework not clearly defined - supplemental financial measures that are or may be alternative performance measures (non-GAAP- measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens' net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Explanations of financial measures used can be found in the Annual Report 2017 of Siemens AG (available at http://www.siemens.com/investor/pool/en/investor_relations/Siemens_AR2017.pdf), in particular in section A.2. 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. Contact: Sabine Reichel Head of Siemens Investor Relations Werner-von-Siemens-Str. 1 80333 Munich +49 (0) 89-636-32474 [email protected] --------------------------------------------------------------------------- 01-Aug-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Siemens Aktiengesellschaft Werner-von-Siemens-Str. 1 80333 München Germany Phone: +49 (0)89 636-00 Fax: +49 (0)89 636-1332474 E-mail: [email protected] Internet: www.siemens.com ISIN: DE0007236101 WKN: 723610 Indices: DAX, EURO STOXX 50, Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of Announcement DGAP News Service --------------------------------------------------------------------------- 710185 01-Aug-2018 CET/CEST