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5 Reasons to Sell CT Service Contracts

Siemens Computed Tomography. Always Thinking Ahead.

October 2005
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UPTIME Services Vision

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We will be admired as the global managed service
provider of choice in the medical sector.
We will achieve this in partnership with our customers,
people, business units, and countries.

UPTIME Services Strategy

From maintain and repair to preventive care …
... through
Managed Enhanced Installed Base More Efficient
Services Productivity Business Service Delivery
Services
UPTIME Services – Portfolio

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Managed Services
Maximize the cost efficient utilization of your
Siemens Clinical Network Management medical systems and networks with our flexible service
management solutions Siemens Clinical Network
Management and Siemens Integrated Service
Siemens Integrated Service Management™ Management™.
> powerd by Siemens Remote Service

Enhanced Productivity Services

Guardian Program™
Siemens Utilization Management
Leverage the full performance potential of your
systems with our optional service offerings
Guardian Program™ the service program for highest
availability, Siemens Virus Protection, and Siemens
Utilization Management providing utilization reports
and benchmarking.

Siemens Virus Protection

Customized Service Agreements

Siemens Shared Services
Siemens Performance Plans
Tailor your medical equipment service and maintenance
to meet your individual needs and preferences with our
flexibly adaptable Siemens Performance Plans, our full
service solution, and Siemens Shared Services where
we partner with in-house engineers. 3
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Siemens Performance Plans – a benefit calculation

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E. g.:
240 work days
25 patients per day

+ 1% Uptime
60 more
patients
Benefit for selling CT service contracts

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• Sell service with system will increase the revenue
for Siemens
• Customers with service agreements are much
more satisfied customers
• During the service contract duration the customer
establishes a relation to Siemens
• When it's time to replace the scanner probability it
will be a SOMATOM is much higher
• Loyal customers will have a Siemens friendly
negotiation style at the time the scanner will be
replaced
• Selling service increases commission
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Dear CT Sales Colleagues,

The CT service business represents an integral part of our strategy of profitable growth
and it is our goal to best possibly leverage the business opportunites in our continuously
expanding installed base. The results achieved in terms of market share growth and
profitability over the past years confirm that we are on the right track with our defined
overall strategy.

In joint efforts of CT’s service and marketing teams we have been able to steadily
expand our service offerings and consequently increase customer satisfaction.
The growing cost pressures in healthcare are forcing our customers to seek ways of
enhancing their economical performance and to reduce cost. This development brings
life-cycle cost considerations into the customer’s focus throughout all product segements
and has led to increased expectations on uptime and service performance. In addition
to standard product related services, our portfolio has been further expanded to
include optional value added services as part of our packages and programs. These
are aimed at providing our customers with top-support in their daily clinical operations.
 Confidential – for Siemens internal use only – do not distribute
This new Service Sales Booklet has been created in a joined effort of the CT Service and
CT Marketing organizations and contains the latest information on our portfolio of
services, that will support you at the point of sales of our CT products and shall be used
to further expand service sales opportunites. Use this powerful tool to keep up your
strong momentum in CT equipment and service sales for continued success in the new
fiscal year 2006.

Sincerely,

Bernd Ohnesorge, PhD Manfred Ulbrich

Vice President CT Vice President CS CT
Marketing & Sales Services CT

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5 Reasons
to Sell

Contracts
CT Service
 Confidential
Confidential
1. Proven performance of the Siemens Medical Service Organization – your customer can rely on us 10

– for–Siemens
for Siemens
2. We support your customer with our know how 12

internal
3. Highly flexible solutions that are cost effective for the customer 14

internal
use only
use only
4. Superb Value 16

– do –not
dodistribute
5. Fair pricing for what your customer receives 18

not distribute
Notes 22

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1 UPTIME Services – rely on us
Siemens – a reliable service organization committed to
join customers through the life cycle of the CT scanner
Description
Focus in healthcare is on quality and effectiveness.
CT technology makes giant steps regarding scanner
performance and applications. Our service organization is
staged to support customers processes with a range of
services. By having a service level agreement, customers
are given the commitment from Siemens UPTIME Services.
Rely on our knowledge, infrastructure, and commitment.
3,700 certified Siemens CSEs
60,000 training days per year
97 % pick up rate 6 seconds or less
70 % first time fix rate
3 hours or less average on-site response
10
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Sales arguments
• We talk to customers in their native language –
GE’s support center is located in India, at least they speak
sort of English when a customer calls
• We partner with customers – Philips purchases market
share no matter what, adapting service resources is a
different matter. In case of Toshiba, service resources are
virtually non existent in areas
• As we are always one step ahead, our escalation and parts
network is benchmark – the competition works hard to
copy our processes
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Contract benefits
• Continuous updates and upgrades
Customers risk
• Continuous education for in-house personnel high
• Virus engine and pattern updates
• Global network for remote service 5%

• Global parts network of CT customers

(non-business oriented)
use On-Call service
Our customer base
• 8,000 CT customers have a contract with us Ability to tailor
low high
• More than 80 % of all our customers have
performance contracts 15%
80% of
• More than 90 % of customers with new CT systems CT customers
< 3 years have a performance contract of CT customers share through all user
service delivery under a groups rely on
Shared Agreement Performance
TOP Agreement

low

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UPTIME Services – we support you
12

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One single partner to fulfill customers needs

Description Sales arguments

Our CT customers are affected by new legal requirements,
changing healthcare policies as well as a lower budget and
fewer employees. At the same time, patients are asking
for higher quality care and better service. To face all these
needs, UPTIME Services comprises the planning,
management, and monitoring of all medical equipment,
service, and maintenance activities. From Siemens Remote
Service (SRS) to syngo Evolve Packages®, support solutions
– by one single provider.
• Neither Philips nor Toshiba have such a program
like syngo Evolve Packages®
• GE still claims syngo Evolve Packages® is just a hardware
upgrade, our syngo Evolve Packages® customers know
better
• When our customers have after-hour service we do
show up, Toshiba just allows them to call
 Confidential – for Siemens internal use only – do not distribute
Benefits
• More than 1,200 satisfied CT customers who already CD

enjoy the new applications out of the CT syngo Evolve

program Legally required UPGRADES Host hardware
UPDATES e.g. new syngo exchange
• Usage of SRS (Siemens Remote Service) with a variety of
features
services – Event Monitoring, Siemens Virus Protection
with daily pattern updates, Guardian Program™ availability
All CT customers
guarantee up to 99 %
• Escalation process with automatic time stamps all
the way into R&D department
CT customers with
syngo Evolve
Packages®/Service
Agreement 13
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UPTIME Services – we are cost effective
Our offerings are tailored to the needs of our customers
and therefore cost effective
Description
Improved patient scheduling and financial planning
are some of the challenges our customers face.
UPTIME Services enable our CT customers to deliver even
more efficient and higher quality patient care at predictable
costs. To increase uptime and system usage is our key focus.
The value of the Siemens Performance Plan will be really
experienced, should it come to a system failure. Our
competent personnel uses most sophisticated service
software and remote service to help customers fast and
convenient.
14
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Sales arguments
• Competition always offers cap contracts – caps on tube
usage, parts etc.
• More than 70% of customers choose OEM Service, in
Siemens over 77% have service contracts
• GE has only 2 types of contracts – we are much more
flexible with our tailored service contract solutions that
are much more customizable
• Toshiba scanners need at least 4 maintenance sessions,
i.e. between 25 and 40 hours per year, SOMATOM CTs
between a third and a fifth of that
 Confidential – for Siemens internal use only – do not distribute
Siemens Performance Plans – Service agreements
Siemens Performance Plans
TOP PLUS PRO
Preventive Maintenance
Safety Checks
Quality Assurance

Basic Modules
Updates
Benefits Siemens Remote Service
• Our contract structure is flexible and offers more syngo® Evolve Package™
than just break and fix services Corrective Maintenance
Technical Phone Support
• Performance guarantee configurable from
Service Performance Report
95 % up to 99 % Spare Parts
• Extended service hours coverage available from UPTIME Guarantee

Optional Modules
Extended Service Hours
8 am to 5 pm up to 24 hours 7 days
Response Time
• All spare parts are included in Performance TOP Multi Year Contract
agreement Load Depended Contract
Special Components
• Unlimited tube coverage available Shared Risk Models

Productivity
• Detector included in service contract Guardian Program™

Enhanced

Services
Siemens Utilization Management
• We tailor the contract to customers‘ needs Siemens Virus Protection
Education Package
Included Included configurable
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UPTIME Services – we deliver real value for your money
UPTIME Services – choose your tailored service offering
Description
CT customer needs are individual and change throughout
the product lifecycle. UPTIME Services offer CT customers
a tailored solution. Based on our know-how as manufacturer
and our experience in service management, we are able to
provide individual service offerings that deliver more than
a “break and fix” service.
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Sales arguments
• Toshiba charges for labor and delivery on monitors and
detectors – we don’t even option it
• Neither Philips nor GE have a Virus Protection offering –
there is much more to it than just having a virus scan
engine and hot fixes
• Contract customers‘ calls are routed to technical support.
Toshiba and others still let them call the engineer. Since
all calls are logged in the service management system,
automatic escalation occurs. Also, our escalation starts
at a higher level right away
 System Management Center

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Benefits SRS Network
• Monitors are included
• Detectors are included
• Management Services available USA Europe Asia
• Continuous and professional maintenance through
certified Customer Service Engineers
Internet VPN, ISDN, Analog
• Remote capabilities for proactive service delivery
Router/Modem
• Using knowledge base and our high-tech tools,
we provide highest level support around the globe

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UPTIME Services – fair-priced quality
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Explore our wide range of offerings

Description Sales arguments

Facing persistent pricing pressure and market competition, • Philips customers ask us for parts – that is because they
our CT customers should receive more than great technology charge a fortune for parts and labor
and service when they purchase our SOMATOM systems.
• We continually invest, e.g. 622 million Euro in 2004,
We offer innovative, flexible, and comprehensive services
to ensure that our processes and infrastructure stay
and deliver quality – at a fair price. We deliver quality –
top notch
in order to satisfy our customers.
 Capitalize on a new

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dimension in system support

Benefits Virus
Guardian Protection Utilization
• Customers investment protection through our continuous Program™ Management
leadership achievements
Application
• Continuous process optimization: clear workflows, Diagnosis Support
and Repair
increased in efficiency, faster on-site service, optimized
Event
system uptime Monitoring Software LifeNet
Updates
• Access to the usage of new clinical applications
Siemens Remote Service
• Utilization and service performance reports
• Continuous development of skills, productivity, and
technology within Life – our Customer Care Solution

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Award winning Service organization

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In establishing a firm service infrastructure that is dedicated
to hearing and responding to the needs of its customers,
Siemens Medical Solutions has successfully fulfilled
its vision of establishing a partnership with its client base.

This makes Siemens Medical Solutions the worthy

recipient of the 2005 Frost & Sullivan Customer Care
Leadership Award.
The 5 reasons to sell CT

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service contracts – Summary
• A proven reliable service organization that takes
care of your customer
• Service supports your customer with state of the art
processes and resources
• Highly flexible solution that can be tailored to your
customers needs and meet their budgets
• UPTIME Services offerings represent a superb value
with standard features and Enhanced Productivity
Services
• Siemens services portfolio is fair priced

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Notes
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The information in this document contains general
technical descriptions of specifications and options
which do not always have to be present in individual
cases. Availability and packaging may vary by country.
The required specifications and options should therefore
be specified in each individual case at the time of closing
the contract.
Siemens reserves the right to modify the design,
packaging, specifications and options described herein
without prior notice. Please contact your local Siemens
sales representative for the most current information.
Note: Any technical data contained in this document
may vary within defined tolerances. Original images
always lose a certain amount of detail when reproduced.

Siemens AG
Wittelsbacherplatz 2
D-80333 Muenchen
Germany

Headquarters Contact Address

Siemens AG, Medical Solutions Siemens AG, Medical Solutions
Henkestr. 127, D-91052 Erlangen Computed Tomography
Germany Siemensstr. 1, D-91301 Forchheim © 09.2005, Siemens AG
Order No. XXXXXXXXXXXXXX
Telephone: +49 9131 84-0 Germany Printed in Germany
www.siemens.com/medical Telephone: +49 9191 18-0 CC XXXXX WS XXXX.X