Five megatrends shape our future Unrestricted | © Siemens 2024 | Equity Story Page 11 Demographic change • Aging society impacting healthcare systems • Productivity improvements as main GDP growth driver in particular mature markets • Heterogeneous population growth among regions impacting labor development and migration Glocalization • From globalization to glocalization • Shifting center of gravity from EU27 and USMCA to RCEP and India • Demand for higher resilience Environmental change • Climate change • Biodiversity loss • Pollution • Scarcity of resources • Increasing material extraction and circular economy Urbanization • Urbanization especially in developing regions • Increasing investment in buildings and infrastructure • Growing importance of vertical farming • Increasing demand for urban transport and and logistics Digitalization • Digital value creation • Connectivity and IoT • Automation • Artificial intelligence • Industrial metaverse • Cybersecurity USMCA: United States, Mexico, Canada; RCEP: Regional Comprehensive Economic Partnership