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SAMSUNG 010605 BJ-kickoff 2 CONFIDENTIAL Mobile Handset Competitor Analysis: Siemens SAMSUNG ELECTRONICS CHINA (SEC SAMSUNG 010605 BJ-kickoff 2 CONFIDENTIAL Mobile Handset Competitor Analysis: Siemens SAMSUNG ELECTRONICS CHINA (SEC China) August 20, 2001 This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Mc. Kinsey & Company. This material was used by Mc. Kinsey & Company during an oral presentation; it is not a complete record of the discussion.

SAMSUNG 010605 BJ-kickoff 2 OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK 1. Background information 4. Value SAMSUNG 010605 BJ-kickoff 2 OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK 1. Background information 4. Value chain strategy • Location • Registered Focus on • Marketing, advertising and promotion • Distribution (channel and sales force) capital • Starting year • Number of employees • Management • Era analysis team • Equity structure 2. Strategy 5. Organization and ownership • • • Organization structure • Ownership structure Mission Vision Corporate strategy Market position 3. Product/market 6. Financial performance • • • Sales • Profit Key product offerings Key customers Value proposition Geographic focus Pricing 1

SAMSUNG 010605 BJ-kickoff 2 KEY ISSUES TO PROBE - SIEMENS Strategy Product/market Value chain SAMSUNG 010605 BJ-kickoff 2 KEY ISSUES TO PROBE - SIEMENS Strategy Product/market Value chain strategy Organization & ownership Financial performance • What does Siemens aim to be in 2005 in mobile communication? • How are Siemens’s product and value delivery system strategies different from its competitors’? • What will be Siemens’s future products and which segments of the market will it target at? • In which segment of the market is Siemens strong or weak? • What is the key success factors for Siemens to pick up market share quickly since 1999? • How does Siemens’s distribution channel differ from its competitors’? • How capable is Siemens in R&D, manufacturing, sales and marketing? • With a broad product portfolio, how does Siemens organize or reorganize itself? • How does Siemens perform and is its performance expected to improve further? 2

SAMSUNG 010605 BJ-kickoff 2 BACKGROUND INFORMATION 1. Background information 4. Value chain strategy • SAMSUNG 010605 BJ-kickoff 2 BACKGROUND INFORMATION 1. Background information 4. Value chain strategy • Location • Registered • Focus on capital • Starting year • Number of employees • Management • Era analysis team • Equity – Marketing, advertising and promotion – Distribution (channel and sales force) structure 2. Strategy 5. Organization and ownership • • • Organization structure • Ownership structure Mission Vision Corporate strategy Market position 3. Product/market 6. Financial performance • • • Sales • Profit Key product offerings Key customers Value proposition Geographic focus Pricing 3

SAMSUNG 010605 BJ-kickoff 2 CHINA HAS DEVELOPED INTO A MAJOR PILLAR FOR SIEMENS BUSINESS SAMSUNG 010605 BJ-kickoff 2 CHINA HAS DEVELOPED INTO A MAJOR PILLAR FOR SIEMENS BUSINESS IN ASIA PACIFIC Location Investment Business • Based at Germany • 50+ JVs, 28 offices in China • Shanghai is the largest Siemens location outside Germany • Invested USD 0. 44 billion in China • All business sectors of Siemens including information and communication, automation and control, power, transportation and household appliance, etc. Starting • Entered China's telecommunication in 1985 • Information and communication business started 1991 Employees • 30, 000 staff in information and communication mobile globally • 25, 000 employees for all business sectors in china History • • • 1982 Siemens Beijing office opened 1985 entered China's telecommunication market 1990 established JV Beijing International Switching System 1994 Siemens China founded in Beijing 1998 formed business segment - Information and Communication 2000 joined forces with CATT and Huavei for next generation mobile technology. Founded TD-SCDMA international forum with Datang, CATT, Huawei, Motorola, Nortel, China mobile, and Unicom Source: Siemens press release Implication • An early entrant to • China's telecommunication market Broad product portfolio representing all business sectors of Siemens worldwide 4

SAMSUNG 010605 BJ-kickoff 2 STRATEGY 1. Background information 4. Value chain strategy • Location SAMSUNG 010605 BJ-kickoff 2 STRATEGY 1. Background information 4. Value chain strategy • Location • Registered • Focus on capital • Starting year • Number of employees • Management • Era analysis team • Equity – Marketing, advertising and promotion – Distribution (channel and sales force) structure 2. Strategy 5. Organization and ownership • • • Organization structure • Ownership structure Mission Vision Corporate strategy Market position 3. Product /market 6. Financial performance • • • Sales • Profit Key product offerings Key customers Value proposition Geographic focus Pricing 5

SAMSUNG 010605 BJ-kickoff 2 SIEMENS AIMS TO BE NUMBER 2 IN MOBILE COMMUNICATION MARKET SAMSUNG 010605 BJ-kickoff 2 SIEMENS AIMS TO BE NUMBER 2 IN MOBILE COMMUNICATION MARKET IN CHINA Strategy • Focus on stylish new models with Product Value delivery system suitable pricing targeting mid to low end of the market • Invest in future products, e. g. , TDSCDMA handsets and wireless home network devices, etc. • Establish R&D centers for mobile communication in Beijing and Shanghai • Mobile handset production capacity being raised to 14 million in Shanghai, a growth of 40% since 2000 • Intensive marketing on new products with most competitive pricing • Carefully select exclusive channel partner PTAC to maintain uniform price level nationwide to ensure healthy sales • Helps resellers set up service centers to handle repair and maintenance Vision • To be number 2 in the Asian mobile communication market (without Japan and Korea) 6

SAMSUNG 010605 BJ-kickoff 2 SIEMENS IS RISING STEADILY IN MOBILE HANDSETS SINCE 1999 Monthly SAMSUNG 010605 BJ-kickoff 2 SIEMENS IS RISING STEADILY IN MOBILE HANDSETS SINCE 1999 Monthly market share development (Percent of market in units sold) Nokia Motorola Siemens Ericsson 98 Source: Retail Audit Source: IDC, Mc. Kinsey Analysis 99 Jan ‘ 00 Dec ‘ 00 7

SAMSUNG 010605 BJ-kickoff 2 SIEMENS HAS OVERTAKEN ERICSSON TO BE NO. 3 IN MOBILE SAMSUNG 010605 BJ-kickoff 2 SIEMENS HAS OVERTAKEN ERICSSON TO BE NO. 3 IN MOBILE HANDSET BY BOTH REVENUE AND SALES VOLUME Breakdown of sales by brand each year Percent Breakdown of units sold by brand each year Percent Others Samsung Siemens Ericsson Nokia Motorola 1999 2000 Source: Gf. K, IDC, Mc. Kinsey analysis 2001 1999 2000 2001 8

SAMSUNG 010605 BJ-kickoff 2 PRODUCT/MARKET 1. Background information 4. Value chain strategy • Location SAMSUNG 010605 BJ-kickoff 2 PRODUCT/MARKET 1. Background information 4. Value chain strategy • Location • Registered • Focus on capital • Starting year • Number of employees • Management • Era analysis team • Equity – Marketing, advertising and promotion – Distribution (channel and sales force) structure 2. Strategy 5. Organization and ownership • • • Organization structure • Ownership structure Mission Vision Corporate strategy Market position 3. Product /market 6. Financial performance • • • Sales • Profit Key product offerings Key customers Value proposition Geographic focus Pricing 9

SAMSUNG 010605 BJ-kickoff 2 KEY MESSAGES - PRODUCT/MARKET • Siemens offers a compete range SAMSUNG 010605 BJ-kickoff 2 KEY MESSAGES - PRODUCT/MARKET • Siemens offers a compete range of mobile communication solutions including devices, infrastructure and applications. Siemens’s mobile handsets come with good quality and competitive pricing • Siemens targets the mid to low end of the mobile handset market. Most of its models are in the price range from below RMB 1000 to RMB 2200 • Siemens has devoted great attention to the important 4 th-tier cities and west China, hence its market share in these developing areas are relatively higher than its share in the more developed areas. 10

SAMSUNG 010605 BJ-kickoff 2 SIEMENS OFFERS A COMPLETE RANGE OF MOBILE SOLUTIONS INCLUDING DEVICES, SAMSUNG 010605 BJ-kickoff 2 SIEMENS OFFERS A COMPLETE RANGE OF MOBILE SOLUTIONS INCLUDING DEVICES, INFRASTRUCTURE AND APPLICATIONS Products Information and communication mobile Siemens product offerings Information and communication networks Source: Siemens press release Now and future • Mobile network • Wireless home • Take TD-SCDMA mobile network & office network • Mobile handset – C 2588 (small, light smart) – S 2588 (brain truster) – 3508 (small, light, sexy) – 3518 i (tough enough) – 3568 i (smart thinking) • Broadband network • IP network • Fixed-line network • Transmission network • Office network • Cable network handsets to serial production level by 2003 • Offer the complete range of mobile solutions including mobile devices, infrastructure and applications, e. g. , wireless home network, • Complete range of GSM, GPRS and UMTS mobile networks, unified messaging and mobile payment • Overall strategy of "a universe of one", pursuing IP driven voice and data communication and customeroriented end-to-end solution and services 11

SAMSUNG 010605 BJ-kickoff 2 SIEMENS MODELS HAVE THE MOST COMPETITIVE PRICING Product positioning Dec SAMSUNG 010605 BJ-kickoff 2 SIEMENS MODELS HAVE THE MOST COMPETITIVE PRICING Product positioning Dec 2000 Business/professional Product positioning June 2000 Retail price Business/professional Personal 9110 High Retail price V 8088 (1. 6%) S 800 C (1. 8%) High 7. 8% V 8088* (3. 9%) RMB 3, 500 3568* (0. 5%) S 800 C (1. 2%) 8210 (3. 7%) S 600 C (3. 8%) 17. 4% 7110* (0. 9%) Highmedium 368 C (3. 1%) 6150 (1. 8%) 3508 (1. 6%) 25. 3% 338 C (0. 6%) T 2688 (4. 8%) L 2000* (4%) Mediumlow 18. 2% RMB 1, 600 S 2588 (1. 8%) T 18 (6. 1%) CD 928 (1. 1%) 45. 9% T 10 (1. 2%) C 2588 (3. 2%) *WAP phone Source: Mc. Kinsey Analysis 2188 (3. 8%) L 2088 (2. 5%) 3210 (2. 2%) 5110 (9. 6%) Low 52. 2% 8210 (4. 6%) T 28 (3. 6%) 7689 i (1. 8%) 3568* (1. 7%) 7110* (0. 3%) 600 C (2. 3%) LF 2000 i* (1. 7%) 6150 (0. 9%) RMB 1, 600 V 998++ (6. 9%) A 100 (0. 8%) 6210 (0. 6%) RMB 2, 200 LF 2000* (2. 9%) Low 21. 9% T 28 (3. 3%) RMB 2, 200 Mediumlow 8850 (1. 8%) V 998 (5. 6%) RMB 3, 500 Highmedium Personal A 6188 (1. 4%) 8850 (1. 7%) 11. 4% Red - Nokia White - Motorola Blue - Ericsson Brown - Siemens Green - Samsung 8250 (0. 0%) 3518 i (1. 8%) T 2688 (6. 2%) 3508 (3. 9%) S 2588 (0. 2%) V 2088 (1. 0%) CD 928 (0. 1%) 3210 (9. 6%) V 2188 (1. 3%) C 2588 (0. 1%) 5110 (5. 9%) T 10 (0. 7%) 368 C (2. 3%) 3310 (6. 8%) T 18 (3. 3%) *WAP phone 12

SAMSUNG 010605 BJ-kickoff 2 SIEMENS TARGETS MID TO LOW END OF THE MARKET Breakdown SAMSUNG 010605 BJ-kickoff 2 SIEMENS TARGETS MID TO LOW END OF THE MARKET Breakdown of unit sold by brand for each price point Percent Others Samsung Siemens Ericsson Nokia Motorola 7 High (> RMB 3, 500) Units as % of total 9% High-mid (RMB 2, 5003, 500) Mid (RMB 2, 0002, 500) 15% 7% Source: Sino-MR (Jan 2001 – Feb 2001), CCID Mid-Low (RMB 1, 5002, 000) 26% Low (

SAMSUNG 010605 BJ-kickoff 2 SIEMENS ALSO ADDRESSES THE IMPORTANT 4 TH TIER CITY MARKET SAMSUNG 010605 BJ-kickoff 2 SIEMENS ALSO ADDRESSES THE IMPORTANT 4 TH TIER CITY MARKET Percent market share, 2000 100%= 6. 7 7. 0 Tier 1 Tier 2 18% 19% 8. 5 14. 8 Tier 3 Tier 4 Million units Others Ericsson Siemens Motorola Nokia Tier size as % of total Source: Mc. Kinsey Analysis 23% 40% 14

SAMSUNG 010605 BJ-kickoff 2 SIEMENS IS RELATIVELY STRONG IN CENTRAL, EAST AND WEST Market SAMSUNG 010605 BJ-kickoff 2 SIEMENS IS RELATIVELY STRONG IN CENTRAL, EAST AND WEST Market share by brands per geographic area, 2001 Percent Others Samsung Ericsson Siemens Nokia Motorola East Market share by geographic area Percent Source: Gf. K, Mc. Kinsey Analysis West Northeast South Central 30 13 15 13 18 11 15

SAMSUNG 010605 BJ-kickoff 2 VALUE CHAIN STRATEGY 1. Background information 4. Value chain strategy SAMSUNG 010605 BJ-kickoff 2 VALUE CHAIN STRATEGY 1. Background information 4. Value chain strategy • Location • Registered • Focus on capital • Starting year • Number of employees • Management • Era analysis team • Equity – Marketing, advertising and promotion – Distribution (channel and sales force) structure 2. Strategy 5. Organization and ownership • • • Organization structure • Ownership structure Mission Vision Corporate strategy Market position 3. Product/market 6. Financial performance • • • Sales • Profit Key product offerings Key customers Value proposition Geographic focus Pricing 16

SAMSUNG 010605 BJ-kickoff 2 KEY MESSAGES - VALUE CHAIN STRATEGY • Siemens’s value delivery SAMSUNG 010605 BJ-kickoff 2 KEY MESSAGES - VALUE CHAIN STRATEGY • Siemens’s value delivery system strategy has evolved since 1999. It has invested $1. 5 billion in the Asian Pacific area as its Asian offensive campaign • Siemens has spent a great effort in localizing R&D and manufacturing. It has built R&D centers in Beijing and Shanghai and has raised the mobile handset production capacity in Shanghai to 14 million units in 2001. It is a leader in TD-SCDMA 3 G technology in China • Siemens has achieved a market share of 12% in sales volume, after intensive marketing of new models with competitive pricing, and aims to increase its market share to 15% • Siemens distributes through exclusive 1 st-tier national reseller PTAC and 2 nd-tier provincial resellers. A uniform price level in the market is maintained nationwide to ensure healthy sales. 17

SAMSUNG 010605 BJ-kickoff 2 SIEMENS VALUE DELIVERY SYSTEM HAS EVOLVED OVER THE YEARS From. SAMSUNG 010605 BJ-kickoff 2 SIEMENS VALUE DELIVERY SYSTEM HAS EVOLVED OVER THE YEARS From. . . (1997) Production • No R&D facility in China • No product localization • High commitment to TD-SCDMA – tests • Production capacity in Shanghai has • Distribution Pudong (150, 000) 60% of products for Chinese market produced in Hong Kong • Brightpoint handling over 90% of distribution Marketing To. . . (2000) • Market share less than 5% • across China in 2001 Asian offensive campaign with US 1. 5 billion investment in R&D and marketing until 2003 been raised to 14 million units from 10 million units in 2000 • Uses different distributor (PTAC), but still only one nationwide • Market share 12% as a result of intensive marketing of new models with competitive pricing Aims to increase market share to 15% Source: Interviews, Mc. Kinsey analysis 18

SAMSUNG 010605 BJ-kickoff 2 SIEMENS INVESTS TREMENDOUS EFFORT IN EVERY PART OF THE VALUE SAMSUNG 010605 BJ-kickoff 2 SIEMENS INVESTS TREMENDOUS EFFORT IN EVERY PART OF THE VALUE CHAIN R&D Strengths • R&D centers for mobile communication in Beijing and Shanghai with more than 500 engineers planned Manufacturing and supply chain • Continuously increase local production capacity and capability Marketing and branding • Intensive marketing on new models with competitive pricing Sales and distribution • Healthy sales through exclusive channel partner PTAC Service • Capable aftersales service with 100 service stations nationwide • Lead international forum in TDSCDMA • Frequent introduction of new models Levers for improvement • Lacks capability in W-CDMA and CDMA 2000 Source: World computer journal, Mc. Kinsey analysis • Fully dependent on single national distributor 19

SAMSUNG 010605 BJ-kickoff 2 SIEMENS VALUE DELIVERY SYSTEM IS ORGANIZED AROUND PRODUCT LINES WITH SAMSUNG 010605 BJ-kickoff 2 SIEMENS VALUE DELIVERY SYSTEM IS ORGANIZED AROUND PRODUCT LINES WITH MULTIPLE CUSTOMER INTERFACES Value delivery system Customer interfaces IC Mobile and IC Network communicate with the same telecom operators separately, with “multiple faces” Source: Mc. Kinsey analysis 20

SAMSUNG 010605 BJ-kickoff 2 SIEMENS DISTRIBUTES THROUGH EXCLUSIVE NATIONAL RESELLER PTAC Siemens Channel Structure SAMSUNG 010605 BJ-kickoff 2 SIEMENS DISTRIBUTES THROUGH EXCLUSIVE NATIONAL RESELLER PTAC Siemens Channel Structure Rationales Vendor • Siemens partners with PTAC, 21% 1 st-tier resellers 12% 67% 2 nd-tier resellers 67% 12% Retailers/retail chain stores 9% 12% 79% taking advantage of their streamlined and efficient distribution channels. PTAC is selected as the exclusive national distributor due to resources and image. • A uniform price level in the market is maintained nationwide to ensure healthy sales Consumers • Rely on both 1 st-tier national reseller • Source: IDC PTAC and 2 nd-tier provincial resellers Devote much attention to low-tier city market 21

SAMSUNG 010605 BJ-kickoff 2 ORGANIZATION AND OWNERSHIP 1. Background information 4. Value chain strategy SAMSUNG 010605 BJ-kickoff 2 ORGANIZATION AND OWNERSHIP 1. Background information 4. Value chain strategy • Location • Registered • Focus on capital • Starting year • Number of employees • Management • Era analysis team • Equity – Marketing, advertising and promotion – Distribution (channel and sales force) structure 2. Strategy 5. Organization and ownership • • • Organization structure • Ownership structure Mission Vision Corporate strategy Market position 3. Product /market 6. Financial performance • • • Sales • Profit Key product offerings Key customers Value proposition Geographic focus Pricing 22

SAMSUNG 010605 BJ-kickoff 2 KEY MESSAGES - ORGANIZATION AND OWNERSHIP • With a large SAMSUNG 010605 BJ-kickoff 2 KEY MESSAGES - ORGANIZATION AND OWNERSHIP • With a large product portfolio covering information and communication and home appliances etc. Siemens’s organization is product focused with clear lines of P&L responsibilities • Siemens has over 50 JVs and WOFEs in China with large commitments in telecommunication. Siemens Shanghai is devoted to mobile communication including mobile handsets • Siemens’s joint ventures are managed under their own global BU, and Siemens China, the holding company, coordinates and provides shared services for the global BU activities in China • Siemens is starting to centralize sales and marketing to better handle solution sales, and the goal is to consolidate all marketing and sales functions under Siemens directly 23

SAMSUNG 010605 BJ-kickoff 2 WITH A LARGE PRODUCT PORTFOLIO, SIEMENS TENDS TO BE MORE SAMSUNG 010605 BJ-kickoff 2 WITH A LARGE PRODUCT PORTFOLIO, SIEMENS TENDS TO BE MORE PRODUCT FOCUSED WITH CLEAR LINES OF P&L RESPONSIBILITY Driving factors Organization structure • In order to meet the trend of technological merging in Information and Communication field, the new Siemens business group - Information and Communication mobile (ICM) started its operation in April 1, 2000. • ICM handles the entire mobile telephone business, with regard to both communications terminals (mobile and wired phones, mobile organizers and digital products) and mobile phone networks (products and services for mobile communication and intelligent networks). P&L responsibility • ICM manager for information and communication mobile • ICN manager for information and communication network Source: Siemens press release, Mc. Kinsey analysis 24

SAMSUNG 010605 BJ-kickoff 2 SIEMENS HAS OVER 50 JVs OR WOFEs IN CHINA, AMONG SAMSUNG 010605 BJ-kickoff 2 SIEMENS HAS OVER 50 JVs OR WOFEs IN CHINA, AMONG WHICH SIEMENS SHANGHAI IS DEVOTED TO MOBILE HANDSETS Not Exhaustive Siemens China 40% Main drivers • • • Beijing wire communication. Beijing telephone authorities Beijing comprehensive investment Beijing international switching systems BISC To be close to customers To be in line with government policies To become Chinese company for Chinese people Establish year 1990 Product offering EWSD switching Source: Siemens press release With Guangzhou Nanfang photoelectrical telecommunication Siemens transmission systems Guangzhou (STSG) 51% Xin De telecom international ventures (TIV) 1993 -1994 Transmission systems (PDH, SDH, DWDM) Finance leasing and consulting Shanghai Aijian, 60% Shanghai Xinguang MPT's First Research Institute Shanghai Siemens business communication system (SBCS) 1993 Hicom 300 switching system With Shanghai video and Audio Electronics, Shanghai Post and telecommunication Siemens Shanghai Mobile communicating (SSMC) 1993 GSM mobile networks and mobile handsets 25

SAMSUNG 010605 BJ-kickoff 2 SIEMENS HAS MADE LARGE COMMITMENTS IN TELECOMMUNICATION IN CHINA Year SAMSUNG 010605 BJ-kickoff 2 SIEMENS HAS MADE LARGE COMMITMENTS IN TELECOMMUNICATION IN CHINA Year of contract Planned investment Siemens (m. DM) share (%) Beijing International Switching Systems Co. , Ltd. 90 90 40 Beijing Wire Communication EWSD manufacturing Plant 25 and distribution Beijing Telephone Authorities 25 Beijing Comprehensive Investment Co. 10 Siemens Fibre Optic Cables Ltd Chengdu 98 54. 5 50 Chengdu Fibre Optic Cable Factory (CDC) Fibre optic cable Siemens Shanghai Mobile Communication Ltd. 93 50 The town of Shanghai; The Ministry for post and Telecommunications GSM mobile radio networks and terminals Guangzhou Nanfang Transmission Systems Ltd. 93 15 Guangzhou Nanfang Photoelectrical Telecommunications Equipment Factory Transmission equipment (e. g. PDH) Siemens Telecom Power Supply Ltd. Shanghai 94 JV company Chinese partner (share) Power supply for telecom systems Xin De Telecom International Ventures Co. Ltd. Siemens Business Communication Systems Ltd. Shanghai Technology Training 93 35 95 51 Shanghai Video and Audio Electronics Co. , Ltd. 40 94 Source: Siemens press release Shanghai Aijian Company Ltd. 21 Shanghai Xinguang Telecommunications plant 28 60 Siemens Shanghai Communication Terminals Ltd. Siemens Optical Fiber Cables Ltd. Chengdu Business scope 45 50 Chengdu Telecommunications Cable Co. , Ltd 50 Hicom 300 Telephone and Telecommunication terminals Loose tube optical fiber cable 26

SAMSUNG 010605 BJ-kickoff 2 FINANCIAL PERFORMANCE 1. Background information 4. Value chain strategy • SAMSUNG 010605 BJ-kickoff 2 FINANCIAL PERFORMANCE 1. Background information 4. Value chain strategy • Location • Registered • Focus on capital • Starting year • Number of employees • Management • Era analysis team • Equity – Marketing, advertising and promotion – Distribution (channel and sales force) structure 2. Strategy 5. Organization and ownership • • • Organization structure • Ownership structure Mission Vision Corporate strategy Market position 3. Product/market 6. Financial performance • • • Sales • Profit Key product offerings Key customers Value proposition Geographic focus Pricing 27

SAMSUNG 010605 BJ-kickoff 2 KEY MESSAGES - FINANCIAL PERFORMANCE • Siemens Information and Communication SAMSUNG 010605 BJ-kickoff 2 KEY MESSAGES - FINANCIAL PERFORMANCE • Siemens Information and Communication (IC) reports another a year of excellent business performance globally. In 2000, IC mobile including the mobile handset business achieved EUR 9 billion in sales world-wide with an expected CAGR of 69% in 19992001. The EBIT margin of IC mobile has also improved from 6% in 1999 to 8% in 2000 • Siemens achieved a revenue of EUR 2. 4 billion in China over all sectors, to which Information and Communication made a significant contribution 28

SAMSUNG 010605 BJ-kickoff 2 SIEMENS INFORMATION AND COMMUNICATION REPORTS ANOTHER YEAR OF EXCELLENT BUSINESS SAMSUNG 010605 BJ-kickoff 2 SIEMENS INFORMATION AND COMMUNICATION REPORTS ANOTHER YEAR OF EXCELLENT BUSINESS PERFORMANCE GLOBALLY EUR billions CAGR 1999 -2001 Percent Global revenue CAGR 1999 -2001 Percent Global EBIT 46 11 IC network 69 IC mobile* 102 IC network IC mobile* 1999 2000 2001 E *Mobile handset belongs to IC mobile Source: Goldman Sachs, Siemens Press Release, Mc. Kinsey analysis 1999 2000 2001 E 29