DRAFT
GEO Netherlands Chapter Event
Siemens Equity Strategy
Agenda
The Siemens Equity Strategy
Plan Design
Communication
Equity Culture Enhancement Project
Page 2
CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Siemens – sectors and divisions
Siemens AG
Energy
 Employees: 370,000
 Revenue (in Mio. €): 78,300
 Income (in Mio. €): 5,200
Healthcare
 Global powerhouse in electrical engineering and
electronics
 working to develop products, design and install complex
systems and projects, and tailor a wide range of services
for individual requirements.
Industry
Infrastructures & Cities
Divisions
Divisions
Divisions
Divisions
 Fossil Power
Generation
 Wind Power
 Solar & Hydro
 Oil & Gas
 Energy Service
 Power Transmission
 Imaging & Therapy
Systems
 Clinical Products
 Diagnostics
 Customer Solutions
 Industry Automation
 Drive Technologies
 Customer Services
 Rail Systems
 Mobility and Logistics
 Low and Medium
Voltage
 Smart Grid
 Building Technologies
 OSRAM 1
Financial Information
Financial Information
Financial Information
Financial Information
 Employees: 86,000
 Revenue (in Mio. €): 27,500
 Income (in Mio. €): 2,200
 Employees: 51,000
 Revenue (in Mio. €): 13,600
 Income (in Mio. €): 1,800
 Employees: 105,000
 Revenue (in Mio. €): 20,500
 Income (in Mio. €): 2,500
 Employees: 89,000
 Revenue (in Mio. €): 17,600
 Income (in Mio. €): 1,100
1) In fiscal2011, Siemens announced its intention to publicly list OSRAM and, as an anchor shareholder, to hold a minority stake in OSRAM AG over the long term
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CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
"I've still always found that it's the greatest
waste not to give those involved in managing
businesses a share of the results."
Werner von Siemens, 1868
"I will not sell the future for short-term
profit!"
Werner von Siemens, 1884
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CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
The Siemens Equity Culture
Peter Löscher has laid the groundworkfor a living Equity Culture embedded in the overall company culture with the
objective to:
• let employees share in the company‘s development
• foster entrepreneurship
• strengthen the motivation and engagement by letting the employees
participate
• assure long-term retention
• recruit professionals
Offering various share programs with more than 148,000 participants worldwide,
Siemens already holds a leading position in the field of equity-based compensation and
is striving to be a Thought Leader.
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CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Living the Equity Culture
Equity Culture fosters employees to act as one Siemens. Local attractiveness is key success factor for living Equity
Culture.
Being a role
model
Foster sustainable behaviour
Global Objectives
Retain & engage
employees
Support longterm thinking
Market competitive
benefit system
Act as One
Siemens
Support mobile
high potentials
Strategic HR compensation element
Local Objectives
Element of local
employer branding
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Support entrepreneurial spirit
CD EA - May 2013
Accordance with local
market best practice
Living the Equity Culture
Tone from the Top
Spreading Equity
Culture into the
organization
Act as One
Siemens
Equity
Culture
Equity as global
brand
Equity as
attractive HR
instrument
Perception in the War
for talents
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Tailor-made communication strategy to live a sustainable
Equity Culture
Tone from
the Top
Commitment
Top Senior
Management
Act as One
Siemens
e.g. CEO Trailer,
Equity Culture booklet
Spread the vision of a global
Siemens Equity Culture
Global
Communication
Toolbox
Media package
 Template cover letter
 Web-based training
 Key messages
 Brochures
 Poster, Banner
 Equity Trailer
Equity as
global brand
 Key visual
Tailor-made communication material in order to meet local requirements
Local
Communication
e.g.
 Road shows
 Local brochure/flyer
 Local, individual trailer
 Face-to-face communication
 Town-hall-Meetings
 Local Management team meetings
Equity as
attractive
HR instrument
 External, local communication
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CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Plan Design
Page 8
CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Siemens’ Share Programs
Share Ownership Guidelines
Performance Oriented Stock Awards
Share Matching Plan
CEO Special Allocation
Page 9
CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Share Matching Plan 2013
Key Messages
Please note: all figures including OSRAM
Share Matching Plan 2013 – 107,000 elections
Population and Country Scope
380,000 employees in 60 countries were eligible to participate in
the Share Matching Plan 2013.
347,000
335,000
380,000
380,000
 Over 107.000 employees elected to participate in the Share
Matching Plan 2013
 This represents an increase of 5% compared to the previous year´s
election
2009
180,000
96,000
2010
88,000
2011
99,000
2012
2013
2009
2010
2011
2012
2013
(7 countries) (40 countries) (54 countries) (59 countries) (60 countries)
148,000 Siemens employees are part of the Siemens equity culture
Since 2009 the participation in the Share Matching Plan is
constantly increasing. World- wide about 148,000 Siemens
employees are part of the Siemens equity culture by owning
shares from one of the Siemens share plans. This is 54% more
than 2009.
2009
2010
2011
2012
115,000
125,000
137,000
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CD EA - May 2013
148,000
+5%
107,000
Highlights Share Matching Plan 2013
 Share Matching Plan 2013 implemented in 1 additional country (UAE).
 Equity Culture Enhancement Project for optimizing local communication
measures and establishing a living equity culture in the whole
organization.
- CZ: Participation rate increase of 17,6 %
- SG: Constant participation rate although negative trend in Asia visible
 MIP participation rate increase of 11% on a global level
 9% increase of the participation rate in total in Central Eastern Europe
 Constant increase of the participation rate in Germany
96,000
+8%
2013
102,500
- BAP: + 7%
- MIP: + 12%
 Constant positive trend in Middle East
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Communication
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CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Global Equity Culture Communication Toolbox
The global Equity Culture Communication Toolbox shows two different communication approaches. The direct, meaning fact to face
communication and the indirect, media driven communication.
Direct / face to face communication methods
Indirect / media driven communication methods
Personalized Emails
Brochures
 Outline attractive benefit
 Target-oriented and cost efficient
 Tone from the top
 Individualized Email communication to all
eligible employees in the respective country
 Knowledge Transfer regarding
compensation structure and Equity Based
Compensation
 Joint responsibility between GSP and local
HR
 Provision of individual brochures, posters
and banners adjusted to the local
requirements (content, key visuals etc)
Local Management Communication
 Joint responsibility: Local HR and GSP
 Face-to-face meetings
External Local Communication
Trailers
 Siemens as Employer of Choice
 Spread the vision of the local Equity
Culture
CEO/CFO Interviews
 Articles in different local newspapers (trade
press)
 Buy in of major stakeholders
 Local conferences and congresses
 Video Statement of local management
Posters
Banners
 Target-oriented and cost efficient
 Target-oriented and cost efficient
 Provision of individual brochures, posters
and banners adjusted to the local
requirements (content, key visuals etc)
 Provision of individual brochures, posters
and banners adjusted to the local
requirements (content, key visuals etc)
 Joint responsibility: Local HR and GSP
 Joint responsibility: Local HR and GSP
 Individual Emotions Trailer
 Interviews with country CEOs/CFOs
regarding Equity Culture and Equity Based
Compensation
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CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Global Equity Culture Communication Toolbox
Direct Communication
Direct communication
The global Equity Culture Communication Toolbox shows two different communication approaches. The direct, meaning
fact-to-face communication and the indirect, media-driven communication.
Local Management Communication
Tone from the top
• Knowledge Transfer regarding compensation structure and
Equity Based Compensation
• Face-to-face meetings
CEO/CFO Interviews
Buy in of major stakeholders
Page 13
CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Global Equity Culture Communication Toolbox
Indirect Communication
Indirect communication
The global Equity Culture Communication Toolbox shows two different communication approaches.
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Personalized Emails
Brochures
Outline attractive benefit
Target-oriented and cost efficient
External Local Communication
Trailers
Siemens as Employer of Choice
Spread the vision of the local Equity Culture
Posters
Banners
Target-oriented and cost efficient
Target-oriented and cost efficient
CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Trailer
In addition to the “regular communication material” an individual local emotions trailer can be produced adjusted to your special local
needs.
Current global Equity Culture Trailer
 Theme and content
- “That’s why we hold a part of it”
- “Proud to be Siemens”
- “Siemens Equity Culture”
 Media channel
- local country websites
- youtube.com
 Music
Emotional music that transports the message
of being proud to own a part of Siemens
by being a shareholder
 Motives
Siemens employees achieving daily greatness
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CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Equity Culture Enhancement Project
Page 16
CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Equity Culture Enhancement Project
A communication mix designed for local needs under the global umbrella is supporting our
sustainable company´s Equity Culture.
Project Target
Measures
Implementation of a communication mix that…
 establishes a global living and sustainable Equity Culture
 is local and target group oriented
 supports the global branding
 is cost efficient and effective
Localized Communication in Pilotcountries, e.g.:
 Country CEO Video Statement
 Road Shows
 Localized Poster and Roll Ups
 Employee Survey
Project Setup
6 Pilotcountries were selected with three different communication approaches of intensity
Result
Module 1
Low intense
communication
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Brazil
Austria
Module 2
Medium intense
communication
Mexico
Malaysia
Module 3
High intense
communication
Czech Republic
Singapore
The Communication approach has a significant impact on participants. A perfect communication mix aligned
with local communication needs increases the awareness and the understanding.
Nevertheless a continuesly communication is key for success.
CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
Global Survey Analysis Highlights
Influence on general attitude
Influence on process design
 General attitude towards shares influences awareness and
plan participation in a positive way
 Employees who invest in shares (not necessarily in Siemens
shares) have the highest awareness and participation rates
 Negative general attitude towards investment in shares has
only little influence on awareness whereas the negative
impact on participation is high
 Employees are aware and participate in the SMP
independant from how they evaluate the risk of investing in
Siemens shares (high or low risk)
 Influence of process design is heterogenous
 Process parts which are easy to understand lead mostly to
high awareness and participation rates
 Evaluating the process as difficult to understand has a
negative influence on awareness, but only little influence on
participation compared to evaluating it as easy to
understand
Comparison first and second survey
Influence on communication
 Second survey shows strong increase of awareness
 Strong increase of awareness is confronted by a little
increase of participation
 Strong increase of awareness in MX and CZ, whereas in
total employees from SG and CZ are most aware of the plan
 Little increase of participation however participating
employees act as multipliers for the plan communication
 Supports findings from the first survey that participation is
mainly influenced by a positive general attitude towards
shares
 Communication has impact on behavior, particularly on
awareness
 Election statistic over time for SG and CZ in focus show an
impact of communication on elections
 According to the second survey, communication tools
(Intranet, Events and Print media) increased the awareness
of employees
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CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.
" I take it as a given that our employees
should be offered, beyond their daily
work, the possibility to invest in the
long-term future development of the our
company. Through our share programs,
we encourage our employees to take a
stake in the company as responsible
shareholders. "
Peter Löscher, 2010
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CD EA - May 2013
For internal use only / Copyright © Siemens AG 2013. All rights reserved.