In Africa. For Africa.

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1 In Africa. For Africa. Siemens Park Midrand, South Africa July 9, 2009 Dirk Hoke CEO Siemens Cluster Africa

2 Africa a continent of growth, potential and opportunities Many African countries are on an upward trend: improved political conditions implementing stronger economic policies Africa s GDP is expected to grow 2.0% in 2010 G8 cancelled the remaining debts of 16 African countries more freedom to increase spending on healthcare and infrastructure Governmental investments of more than $30 billion in 2008 to help close the developmental divide This trend is set to continue and accelerate in the future Major sporting events and increased tourism are having a positive knock-on effect e.g. South Africa 2010 World Cup Page 2 July 2009

3 There is a huge need for infrastructure investments Nearly 530 million Africans lack access to electricity. According to the UN, this figure could reach 600 million in 20 years. More than 300 million Africans lack access to safe drinking water, with millions of people dying each year from preventable waterborne illnesses. The Intergovernmental Panel on Climate Change estimates that million people will have to cope with additional limitations to water access. More than 50% of Africa s population do not have access to modern health facilities; life expectancy is below 50 years in most countries. According to the International Finance Corporation, an estimated $25-$30 billion in new investments will be needed to meet demand for medical care between 2005 and Page 3 July 2009

4 As one of the fastest urbanizing continents Africa offers excellent business opportunities for all three Siemens sectors Rate of urbanization: 5% 14.7% 37.2% 45.3% Lagos in Nigeria is expected to become the world s eleventh biggest city by 2015 with 17 million inhabitants. With more people moving to cities demand is increasing for efficient and sustainable infrastructure, such as energy, transportation and water, as well as healthcare. Page 4 July 2009

5 Siemens has a long history and strong footprint in Africa Present in Africa for more than 110 years More than 3,000 employees Offices or manufacturing sites in twelve countries across the continent The new Africa Cluster will make us more competitive, faster and more flexible Total addressable market: ~ 27 billion in 2009 Siemens is present with all three sectors, the energy market is particularly attractive Page 5 July 2009

6 Siemens is already well positioned with green technology Morocco The Tangier wind farm will supply the entire city and neighboring villages with green electricity Algeria Siemens is completely overhauling eleven wastewater treatment stations to reduce the impact of pollutants Tunisia Siemens built the first tram line in Africa. It carries more than 130 million passengers South Africa Siemens builds the first new energy efficient power plants in South Africa since the inception of democracy Page 6 July 2009

7 Example for green technology: Energy saving lamps for Africa In a pilot project OSRAM offers residents around Lake Victoria far from power grids energysaving lamps The power comes from "Energy Hubs small electrical charging stations (three in Kenya, one in Uganda) Along with the lamps, purified drinking water and a mobile phone recharging service is provided Our goal is to build a further 100 or so Energy Hubs in Africa Page 7 July 2009

8 Siemens in South Africa Active engagement since 1860 July 9, 2009 Stuart Clarkson CEO Siemens South Africa

9 South Africa is a country of contrasts It is characterized by well developed cosmopolitan cities, excellent facilities and a high standard of living but also by a huge, yet closing, gap between rich and poor. Transformation remains the top priority. Page 9 July 2009

10 Republic of South Africa: quick facts Capital: Pretoria Eleven official languages Total land area: ~ 1.2 million square kilometers, nearly four times the size of Germany 22nd-largest economy by GDP (GDP 2008: ~ $280 billion) Population (2007): ~ 48 million in nine provinces The 17th-largest global producer of electricity World leader in mining and minerals: nearly 90% of the platinum metals on earth 80% of the manganese 73% of the chrome 45% of the vanadium 41% of the gold Page 10 July 2009

11 South Africa is a key country for Siemens on the continent 1860: Siemens started operations in South Africa by linking Cape Town and Simonstown with a telegraph line 1996: Opening of current headquarter in Midrand, Gauteng Revenue FY 2008: > 600 million (> R8 billion) New orders FY 2008: ~ 721 million Workforce FY 2008: approx. 2,000 employees No. 1 in the fields of Healthcare, Energy Transmission and Industry Drive Technologies Stator for one of the three-phase generators in the Brakpan power station, near Johannesburg, South Africa, 1897 Page 11 July 2009 Siemens Park, corporate headquarters in South Africa

12 We strongly build on local content and manufacturing for the local market Marketing Offices Cape Town Pinetown, Durban Port Elizabeth Corporate Park North, Midrand Siemens Service Centre, Midrand Siemens Park (Head Office) Manufacturing Offices Pinetown, Durban N1 Business Park, Midrand Corporate Park North, Midrand Kya Sands, Randburg Isando Wadeville Meyerton ACSA Park Page 12 July 2009

13 Recent successes are a good indication of the excellent business potential in the region Energy Several orders for energy efficient gas turbines, control & instrumentation, transformers, circuit breakers, medium voltage switchgear Industry Hoisting system for Anglo s Number 17 platinum shaft in Rustenburg up to now, the most powerful hoist motor High Pressure Roll Crusher for the De Beers Voorspoed Mine, enabling up to 900,000 carats of diamonds a year to be mined from this site Subcontracting to SA Shipyards for electrical infrastructure for tugboats Healthcare Three-year contract to provide the Gauteng Department of Health with Hospital Information Systems for 37 hospitals and 300 clinics Advia LabCell laboratory automation solution to Johannesburg Hospital SIS Contract with the South African Broadcasting Corporation to oversee the digital roll out process throughout all sections, including radio Page 13 July 2009

14 Questions?

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