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Siemens wants to win Smart Grid orders worth over €6 billion by 2014


Munich, Germany/Salzburg, Austria, Siemens AG wants to receive orders worth more than €6 billion for intelligent power networks (Smart Grids) over the next five fiscal years: Siemens is already one of the leading international suppliers of Smart Grids and is continuing to strengthen this position. “We are already on the optimal course in the Smart Grids business and will be running at top speed in the future. A new age for power supplies is dawning with Smart Grids,” said Wolfgang Dehen, CEO of the Siemens Energy Sector. Siemens anticipates that orders for Smart Grid technologies will reach nearly €1 billion in the current fiscal year. “The Smart Grid market will see increasingly dynamic growth fueled by climate change and economic stimulus programs. We want to grow twice as fast as the overall market,” added Dehen. The market being addressed by Siemens totals around €30 billion over the coming five years. Siemens is aiming at seven percent annual growth and a market share of over 20 percent in the Smart Grid business.

“The world needs intelligent power grids in order to meet the growing demand for energy in a way that is eco-friendly and reliable. We estimate that the demand for electricity will double by 2030, due to trends like e-mobility, which is just emerging,” continued Dehen. According to studies, more than a billion tons of CO2 emissions could be abated with intelligent power networks by 2020. Smart Grids are essential for integrating renewable power sources into power networks and for ensuring stable power supplies from solar and wind energy.

Overall, the Smart Grid market has three primary components: Smart Metering (intelligent billing), Grid Intelligence (the grid infrastructure and its controls), and Utility IT (intelligent data management). Siemens is active in all three areas and is already global market leader for grid intelligence. Siemens will strengthen its Smart Grid portfolio in the field of power data management in the coming fiscal year when it plans to take over a 60-percent stake in Energy4U on October 1, 2009. This move will expand the company’s portfolio for power utilities in the area of consumption data acquisition and billing.

Smart Grids have enormous growth potential worldwide. They are, for example, a prerequisite for reaching the EU’s 20-20-20 climate goals aimed at reducing CO2 emissions by 20 percent and increasing the share of renewable energies in the European grid by 20 percent by 2020. In addition, Smart Grids are included in many of the economic stimulus programs throughout the world. The U.S. government alone intends to invest around €3 billion here in the coming years. Siemens expects to receive orders worth around €15 billion from these programs by 2012. Forty percent of these orders, or a volume of roughly €6 billion, is expected to be for green technologies from the Siemens Environmental Portfolio.

Energy-efficient, resource-conserving Smart Grids are part of the Siemens Environmental Portfolio, which generated revenue of nearly €19 billion in fiscal 2008. This was around one-quarter of the company’s total revenue, making Siemens the world’s biggest infrastructure provider of environmental technologies.

Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. The company has around 420,000 employees (in continuing operations) working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of solutions for individual requirements. For over 160 years, Siemens has stood for technical achievements, innovation, quality, reliability and internationality. In fiscal 2008, Siemens had revenue of €77.3 billion and a net income of €5.9 billion (IFRS). Further information is available on the Internet at:

This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of Siemens’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect Siemens’ operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For Siemens, particular uncertainties arise, among others, from: changes in general economic and business conditions (including margin developments in major business areas and recessionary trends); the possibility that customers may delay the conversion of booked orders into revenue or that prices will decline as a result of continued adverse market conditions to a greater extent than currently anticipated by Siemens’ management; developments in the financial markets, including fluctuations in interest and exchange rates, commodity and equity prices, debt prices (credit spreads) and financial assets generally; continued volatility and a further deterioration of the capital markets; a worsening in the conditions of the credit business and, in particular, additional uncertainties arising out of the subprime, financial market and liquidity crises; future financial performance of major industries that Siemens serves, including, without limitation, the Sectors Industry, Energy and Healthcare; the challenges of integrating major acquisitions and implementing joint ventures and other significant portfolio measures; the introduction of competing products or technologies by other companies; a lack of acceptance of new products or services by customers targeted by Siemens; changes in business strategy; the outcome of pending investigations and legal proceedings, including corruption investigations to which Siemens is currently subject and actions resulting from the findings of these investigations; the potential impact of such investigations and proceedings on Siemens’ ongoing business including its relationships with governments and other customers; the potential impact of such matters on Siemens’ financial statements; as well as various other factors. More detailed information about certain of the risk factors affecting Siemens is contained throughout this report and in Siemens’ other filings with the SEC, which are available on the Siemens website,, and on the SEC’s website, Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.


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