【正文】 THE IMPORTANT 4TH TIER CITY MARKET Percent market share, 2020 Ericsson Siemens 18% 19% 23% 40% Tier size as % of total 100%= Million units Source: McKinsey Analysis SAMSUNG010605BJkickoff2 15 SIEMENS IS RELATIVELY STRONG IN CENTRAL, EAST AND WEST Market share by brands per geographic area, 2020 Percent Market share by geographic area Percent 29 31 29 31 28 2830 25 29 2629261416 13 13 11 1798 75813 15 12 15 13 1464105 71311East Siemens Ericsson Samsung Others Nokia Motorola West North Northeast South 30 13 15 13 11 Central 18 Source: GfK, McKinsey Analysis SAMSUNG010605BJkickoff2 16 VALUE CHAIN STRATEGY 1. Background information ? Location ? Registered capital ? Management team ? Equity structure ? Starting year ? Number of employees ? Era analysis 4. Value chain strategy 5. Organization and ownership 6. Financial performance ? Focus on – Marketing, advertising and promotion – Distribution (channel and sales force) ? Organization structure ? Ownership structure ? Sales ? Profit 2. Strategy 3. Product/market ? Mission ? Vision ? Corporate strategy ? Market position ? Key product offerings ? Key customers ? Value proposition ? Geographic focus ? Pricing SAMSUNG010605BJkickoff2 17 ?Siemens?s value delivery system strategy has evolved since 1999. It has invested $ billion in the Asian Pacific area as its Asian offensive campaign ? Siemens has spent a great effort in localizing Ramp。L responsibilities ? Siemens has over 50 JVs and WOFEs in China with large mitments in telemunication. Siemens Shanghai is devoted to mobile munication including mobile handsets ?Siemens?s joint ventures are managed under their own global BU, and Siemens China, the holding pany, 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 KEY MESSAGES ORGANIZATION AND OWNERSHIP SAMSUNG010605BJkickoff2 24 0 1 0 7 2 6 B J E S M 0 0 3 C S A V v 5 . i13S i em en s I n t er n at i o n al B S H B os ch an d S i e m e ns ho us e ho l d ap pl i an c e s I nf or m a t i on an d co m m un i ca t i on ne t w or kC on s um e r e l e ct r on i cs( B S W H Ji an gs u , B S Y CA nh ui ) R amp。s First Research Institute 1993 1993 Not Exhaustive Source: Siemens press release SAMSUNG010605BJkickoff2 26 SIEMENS HAS MADE LARGE COMMITMENTS IN TELECOMMUNICATION IN CHINA JV pany Year of contract Planned investment (mDM) Siemens share (%) Chinese partner (share) Business scope Beijing International Switching Systems Co., Ltd. Siemens Fibre Optic Cables Ltd Chengdu Siemens Shanghai Mobile Communication Ltd. Guangzhou Nanfang Transmission Systems Ltd. Siemens Tele Power Supply Ltd. Shanghai Xin De Tele International Ventures Co. Ltd. Siemens Business Communication Systems Ltd. Shanghai Siemens Shanghai Communication Terminals Ltd. Siemens Optical Fiber Cables Ltd. Chengdu 90 98 93 93 94 93 95 94 90 50 15 35 45 40 50 51 60 50 Beijing Wire Communication Plant 25 Beijing Telephone Authorities 25 Beijing Comprehensive Investment Co. 10 Chengdu Fibre Optic Cable Factory (CDC) The town of Shanghai。D centers for mobile munication in Beijing and Shanghai with more than 500 engineers planned ? Lead international forum in TDSCDMA ? Frequent introduction of new models ? Continuously increase local production capacity and capability ? Intensive marketing on new models with petitive pricing ? Healthy sales through exclusive channel partner PTAC ? Capable aftersales service with 100 service stations nationwide Levers for improvement ? Lacks capability in WCDMA and CDMA 2020 ? Fully dependent on single national distributor Source: World puter journal, McKinsey analysis SAMSUNG010605BJkickoff2 20 SIEMENS VALUE DELIVERY SYSTEM IS ORGANIZED AROUND PRODUCT LINES WITH MULTIPLE CUSTOMER INTERFACES Value delivery system Customer interfaces IC Mobile and IC Network municate with the same tele operators separately, with “multiple faces” 0 1 0 7 2 6 B JE S M 0 0 3 C S A V v 5 . i14W a sh i n g m a ch i n eR e f r i g e r a t o r / f r e e z e rM o b i l e h a n d s e tM o b i l e n e t w o r kS w i t ch i n gT r a n sm i ssi o nR amp。s telemunicati