Siemens (SIE) Acquisition presentation summary

Strategic rationale and market positioning

• Acquisition of MERMEC enhances diagnostics, asset intelligence, and signaling capabilities, expanding industrial presence in Italy and globally in rail technology.

• MERMEC specializes in mainline signaling, digital diagnostics, high-precision measurement trains, and analytics platforms, with ~€430m FY25 revenue and ~1,700 employees worldwide.

• The acquisition targets attractive, resilient rail infrastructure markets, supported by long-cycle demand and significant investments, such as over €170 billion by FS Italiane until 2034.

• Integration enables a holistic, digitally driven offering, combining advanced diagnostics with Siemens' global reach and technology leadership.

• Significant revenue synergies expected from cross-selling and portfolio expansion, with digitalization and predictive diagnostics driving lifecycle value.

Transaction details and financial impact

• Acquisition covers key businesses of MERMEC Group, excluding certain investments; financial terms remain undisclosed.

• EBITDA multiple aligns with comparable rail signaling transactions; short-term synergies expected to deliver >€15m EBITDA impact annually by year two post-closing.

• Revenue synergies projected at >€400m per annum mid-term, growing to >€500m long-term.

• EPS (pre-PPA) accretive by year two post-closing, with substantial accretion thereafter; transaction supports revenue growth and margin targets.

• Fully financed from existing resources, not subject to financing conditions; closing anticipated by end of 2026, subject to customary conditions.

Forward-looking statements and investor engagement

• Statements regarding future performance are forward-looking and subject to risks and uncertainties, as outlined in Siemens' management reports.

• Supplemental financial measures may differ from other companies' calculations and should not be viewed in isolation.

• Investor engagement planned through roadshows in Germany, France, and the US, as well as participation in the JPM Conference in London.

• Q3 earnings release scheduled for August 6, 2026.