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November 2011

Siemens in Brazil
In fiscal 2011 (October 1, 2010 September 30, 2011), Siemens sales to customers in Brazil amounted to EUR 1.961 billion and new orders totaled EUR 2.213 billion. Siemens currently has around 10,120 employees in Brazil. Siemens has been operating in Brazil for over 100 years and is presently the biggest electrical and electronics conglomerate in the country. Siemens equipment generates 50 percent of Brazil's electricity, provides 30 percent of all digital diagnostics imaging in the country, and has been used in two-thirds of all offshore oil drilling projects over the past eight years. In the last five years, Siemens inaugurated eight new factories in Brazil and generated 4,000 new jobs. Siemens has invested more than USD 700 million in Brazil in the past decade and plans to double this rate by investing an additional USD 600 million over the next five years. The announcement of Siemens new and seventh R&D center in Rio de Janeiro last July underscored the companys strong commitment to Brazils technological development. Siemens offers a wide range of solutions and services in Brazil, where its Industry, Energy and Healthcare Sectors occupy leading positions. In fiscal 2011, Siemens in Brazil scored major successes in all three Sectors: Industry Sector The Industry Sector is one of Brazils premier providers, offering innovation, efficiency and top-quality products, systems, solutions and services for a broad spectrum of industries.

In 2011, Siemens was awarded an important contract in the pulp & paper industry: The company will supply the complete electrical system for the new Suzano bleached pulp mill with a planned capacity of 1.5 million tons per year. The Industry Automation Division won major orders, primarily in the oil & gas and sugar & ethanol segments, and has strengthened its position in the M3 (entry-level) market. The Division supplied systems and equipment to 13 of the last 14 offshore oil-drilling platforms built. Siemens also provided automation systems for the cleaning of the Lagoa Rodrigo de Freitas in Rio de Janeiro. In fiscal 2010, the Drive Technologies Division won a reference contract to supply Norberto Odebrecht one of the countrys biggest players in the infrastructure civil construction market with a complete package of variable-flow pumps. In the metals and mining industry, Siemens signed important contracts with Gerdau, Novelis, Usiminas and Arcelor, consolidating its leadership in this segment. Siemens Brazil will be responsible for the expansion of the largest aluminum rolled products plant operated by Novelis at Pindamonhangaba, So Paulo. The company will provide auxiliary drives, transformers and automation systems for a tandem cold rolling mill, the first of its kind in South America. This Siemens solution will enable Novelis to increase its plant capacity by 50 percent. The scope of the project awarded to Siemens in 2010 by steelmaker Gerdau includes a steel plate mill and a Steckel mill (a reversible finishing mill) being constructed in Ouro Branco, in the state of Minas Gerais. The Mobility Division is an important provider of products and solutions for urban railway systems. Siemens supplied the driverless metro solution for the recently inaugurated Linha Amarela line in So Paulo. Several business units from the Mobility, Building Technologies and Industry Automation Divisions worked together on the metro project. In another Mobility Division project, Siemens completed the modernization of 25 metro vehicles operated by Metro Recife. The company is also helping upgrade the metro system in So Paulo and renewed its comprehensive maintenance contract with Metro Braslia.

Energy Sector The Energy Sector won important utilities and industrial contracts that contributed to sound growth in fiscal 2011. In partnership with the Rio de Janeiro Federal

University, Siemens announced the development of a global research and development (R&D) center in Rio de Janeiro that will focus on oil and gas and subsea technologies. The R&D center, which will be located at the Ilha do Fundao technological park, will be inaugurated in 2012. The Oil & Gas Division was designated as a Global Center of Competence in Brazil and signed important FEED (front-end engineering and design) contracts for the development of key Petrobras refineries: RNEST, Premium I & II. Siemens also won orders for steam turbine exports to Enka de Colombia S.A., a synthetic fibers producer in Colombia, and Ingenio Magdalena S.A, a sugar producer in Guatemala. The Fossil Power Generation Division delivered a 350-MW turbo generator for the MPX Pecm II thermo power plant, which will begin operating in 2012. The plant is being built in the Pecm Port and will have an important role in the countrys development. The Renewable Energy Division successfully entered Brazils wind power market by winning a total of 300 MW in contracts with Ersa, Enel and Tractebel. Siemens will be delivering a total of 131 SWT 2.3-101 wind turbines. The company expects to play a growing role in diversifying Brazils energy mix with green solutions. The Energy Service Division signed a performance upgrade contract with Norte Fluminense TPP, performed overhaul and turbo loop services at Fibria, and initiated high-speed balancing machine services. Siemens Turbocare signed a long-term service agreement with Braskem, a Brazilian chemicals company. The Power Transmission Division will supply fourteen 500-kV, 680-MVA transformers the largest in Brazil to the Belo Monte hydro power plant. Siemens won a major order for 51 substations with up to 138-kV capacity from CPFL, one of the countrys biggest energy companies. Siemens will also supply high-voltage circuit breakers for the Cadafe project and static var compensators to CHESF, a power utility. Siemens in Brazil is currently supplying power capacitors to key highvoltage direct-current (HVDC) projects worldwide. The Power Distribution Division signed an energy automation contract for the Santo Antonio hydro power plant and a contract with LLX, the port logistics company, to deliver seven secondary 13.8-kV substations. Siemens also won a three-year highand medium-voltage operating and maintenance contract for the VSB Jeceaba steel

mill. The Siemens-Cepel consortium is currently implementing REGER, the new Brazilian power grid management system, for the Brazilian national grid operator. In fiscal 2011, Siemens Energy Sector supplied numerous solutions and services that will contribute to Brazils infrastructure development and economic growth.

Healthcare Sector Siemens signed a contract with the Ministry of Health to deliver HIV/AIDS/STD and Hepatitis testing equipment. Siemens won its largest order in Latin American history, and will supply 60 diagnostic imaging systems over a period of three years to a private investor in several Brazilian states. The Santa Casa de Santos health center, which was founded as Brazils first hospital back in 1543, purchased an Artiste, a Magnetom Espree, an Artis Zee, 2 Sieremobil Compact L and one VersaCell. In August 2011, company headquarters in Germany announced that the Customer Relationship Management (CRM) processes used by Siemens Brazil are structurally defined, systematically lived and continuously improved. Within Siemens global organization, only Germany and Brazil have achieved that status. This accomplishment confirms that Siemens Brazil is continuously improving its processes to even better meet and exceed customer expectations. Further proof of these efforts was offered by a customer satisfaction survey, the Net Promoter Score. In 2011, Siemens Brazil scored 77 percent; the high percentage of customers that would recommend Siemens Customer Service to a friend or colleague.

In fiscal 2011, Siemens carried out around 50 corporate citizenship initiatives in the areas of social welfare, educational support, arts and culture. These included the sponsorship of the Mozarteum Brasileiro, an organization that promotes classical music in schools and theaters. Highlights for the year included the Ecological Trail to foster environmental education for children; the Emotional Intelligence Project, which is part of the Peter von Siemens Foundation and helps children with learning disabilities; and the loan of two ultrasound units to OSCIP Expedicionrios da Sade, which has conducted 17 expeditions to the Amazon Region to provide free medical care to isolated populations.

In 2011, Siemens won the National Innovation Award, presented to Brazils best innovation management company by the National Industry Confederation and the Movimento Brasil Competitivo (MBC). Siemens was also among the four companies receiving official recognition from the Brazilian Office of the Comptroller General (CGU) in 2010 for their exemplary corporate governance and ethical business practices. This recognition was accompanied by an Ethical Seal award.

Chemtech a Siemens Group company was ranked among the Best Companies to Work for in Brazil by the countrys most important organizational environment survey conducted by Voc S/A Exame magazine, and was also ranked among the Best Companies to Work for in Latin America; Best Companies to Start a Career; Best Companies to Work for in IT and Telecom; and Best Companies to Work for in Rio de Janeiro. The Brazilian magazine Gesto & RH chose Siemens, for the fifth year in a row, as one of the Top 100 companies in the IDHO Award 2010 (Organizational Human Development Index) and also one of the 10 Best Companies in the Human Capital Dimension. Siemens also ranked among the 150 Best Companies in People Management Practices and the Top 50 Companies Psychologically Healthy, rated by the same magazine.

Siemens first activities in the country date back to 1867, with the installation of the first telegraph line between the states of Rio de Janeiro and Rio Grande do Sul. In 1895, the company opened its first office in Rio de Janeiro and ten years later founded Siemens Brazil. Today, more than 100 years later, Siemens commitment to Brazil transcends its business activities. Siemens Brazil heavily relies on local content and has 13 production facilities and six R&D centers.

For further information, please contact: Jos Gonalves Pereira Neto Press Relations Siemens Ltda. 05110-901, So Paulo, Brazil Tel. (+55 11) 3908 2471 Fax: (+55 11) 3908 2707 E-mail: jose.neto@siemens.com