UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

May 5, 2008

Commission File Number: 1-15174

Siemens Aktiengesellschaft

(Translation of registrant’s name into English)

Wittelsbacherplatz 2

D-80333 Munich
Federal Republic of Germany
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F þ     Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes o     No þ

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes o     No þ

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o     No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

 

 

Table of contents

Key figures

Interim group management report

Interim Consolidated Financial Statements

Notes

Supervisory Board changes

Managing Board changes

Responsibility statement

Review report

Quarterly summary

Siemens financial calendar

Signatures

Key figures(1)		Q2 and first half 2008(2)

(unaudited; in millions of €, except where otherwise stated)

Interim group management report

Overview of financial results for the second quarter of fiscal 2008

	•		Orders rose 12%, to €23.371 billion, and revenue increased 1% to €18.094 billion. On an organic basis, excluding the net effect of portfolio transactions and currency translation, orders climbed 15% year-over-year, and revenue rose 2%.
	•		Siemens substantially completed reviews of projects primarily in fossil power plant solutions and rail transportation, aimed at identifying risks and taking corresponding measures. As a result, Group profit from Operations was €1.203 billion in the second quarter, including charges at Power Generation, Transportation Systems and Siemens IT Solutions and Services totaling €857 million.
	•		These impacts also affected net income, which was €412 million for the quarter, and income from continuing operations, which came in at €565 million. Basic EPS for net income and income from continuing operations were €0.42 and €0.59, respectively.
	•		Shortly after the close of the second quarter, Siemens completed the first tranche of its previously announced share buyback program, with purchases totaling approximately €2.0 billion of which purchases of approximately €1.6 billion were conducted during the second quarter.

Siemens’ order growth was robust on a global basis, and the industry and healthcare sectors combined strong growth with higher earnings. Our energy portfolio performed well in most areas, with strong overall order growth. We have now concluded our project review in the fossil power business and have a clear picture of the relevant risks.

Robust order growth generated a book-to-bill ratio of 1.3. On an organic basis, excluding the net effect of currency translation and portfolio transactions, orders rose 15% with good regional distribution. Strong demand in Germany included major contract wins at Power Generation (PG) and a large order at Medical Solutions (Med), while order growth in Asia-Pacific was more broad-based. High double-digit growth in the region comprising the Near and Middle East, Africa and Commonwealth of Independent States (C.I.S.) was driven by large energy infrastructure orders at Power Transmission and Distribution (PTD). Revenue for the quarter rose 2% organically compared to a strong prior-year period. Europe outside Germany, Siemens’ largest region, was on pace with 2% growth for the quarter. Revenue in the Asia-Pacific and Americas regions grew 6% and 3%, respectively, with particular strength at Automation and Drives (A&D). Excluding strong negative currency translation effects, the U.S. posted revenue growth of 7% year-over-year. Revised estimates of project completion, mainly at PG, reduced revenue by approximately €250 million.

Group profit from Operations was strongly affected by results of project reviews. The second quarter included strong profit performance at A&D, Med, PTD, and Industrial Solutions and Services (I&S). In contrast, PG, Transportation Systems (TS) and Siemens IT Solutions and Services posted losses in the second quarter due to charges totaling €857 million. As a result, Group Profit from Operations came in at €1.203 billion compared to €1.781 billion in the prior-year period.

Income and EPS reflect project review impacts. Net income was €412 million compared to €1.259 billion in the second quarter a year earlier, resulting in basic EPS of €0.42 compared to €1.34 in the prior-year period. Income from continuing operations was €565 million compared to €1.286 billion in the second quarter a year ago, with corresponding basic EPS of €0.59 compared to €1.39 in the prior-year period. The declines are due largely to Group profit from Operations. In addition, Corporate items were significantly higher year-over-

year, at a negative €506 million compared to a negative €210 million. Major factors included increased expenses for compliance investigations and costs related to Siemens’ transformation programs.

Net income was also influenced by discontinued operations. In the second quarter, discontinued operations posted a loss of €153 million compared to a loss of €27 million in the same quarter a year earlier. The prior-year period included positive operating results at Siemens VDO Automotive (SV) and at telecommunications carrier activities, both of which were divested between the periods under review. The enterprise networks business took €109 million in severance charges and a €12 million asset impairment in the current period. A year earlier, this business took a goodwill impairment of €148 million.

Free cash flow and ROCE development includes project charges and reflect portfolio changes. Free cash flow from continuing operations was €1.623 billion in the second quarter. In the prior-year period, Free cash flow of €2.619 billion benefited from a positive effect related to receivables associated with the transfer of the carrier activities into Nokia Siemens Networks B.V. (NSN). In the current period, Operations generated €1.010 billion in Free cash flow while Financing & Real Estate and Corporate Treasury activities contributed €613 million. The cash conversion rate for continuing operations in the second quarter was 2.87, positively influenced by the charges within Operations. ROCE for the first half of fiscal 2008 was adversely affected by the project charges mentioned above, coming in at 8.6%. As expected, ROCE development was affected also by a substantial increase in capital employed year-over-year stemming from major acquisitions completed in fiscal 2007 and fiscal 2008. This effect will continue in coming quarters. A year earlier, ROCE in the first six months was 13.6%.

Expenses for compliance investigations increase. Siemens incurred €175 million in expenses in the second quarter for outside advisors engaged in connection with investigations into alleged violations of anti-corruption laws and related matters as well as remediation activities. The total for continuing operations was €148 million, with the remaining €27 million related to discontinued operations.

In the first six months of fiscal 2008, the total amount of these expenses was €302 million, with the total for continuing operations amounting to €241 million and the remaining €61 million related to discontinued operations. For more information regarding these matters see “Notes to Interim Consolidated Financial Statements.”

Siemens completes the first tranche of its share buyback program. The tranche totalled approximately €2.0 billion in purchases for 24,854,541 shares, and was completed shortly after the close of the quarter on April 8, 2008. For further information see “Liquidity, capital resources and capital requirements” below.

Results of Siemens

Results of Siemens — Second quarter of fiscal 2008

The following discussion presents selected information for Siemens for the second quarter of fiscal 2008:

Orders were €23.371 billion, a 12% increase from the same quarter a year earlier. Revenue was €18.094 billion, up 1% compared to the prior-year period. On an organic basis, excluding currency translation and portfolio effects, orders rose 15% year-over-year and revenue increased 2%.

		New Orders (location of customer)
										% Change
		Second quarter								vs. previous year								therein
(€ in millions)		2008				2007				Actual				Adjusted*				Currency				Portfolio
Germany			3,786				3,085				23	%			21	%			0	%			2	%
Europe (other than Germany)			7,567				7,264				4	%			6	%			(3	)%			1	%
Americas			5,834				5,661				3	%			10	%			(13	)%			6	%
Asia-Pacific			3,630				3,092				17	%			19	%			(6	)%			4	%
Africa, Near and Middle East, C.I.S.**			2,554				1,748				46	%			54	%			(8	)%			0	%
Siemens			23,371				20,850				12	%			15	%			(6	)%			3	%

Order growth in the second quarter was well balanced, particularly from an organic perspective, with most regions showing double-digit growth compared to the prior-year period. Europe outside Germany, Siemens’ largest region, increased orders 4% year-over-year highlighted by healthy demand at A&D, Med and PG. In the Americas, the leaders were PG, TS, Med and A&D. New orders in Germany during the quarter included a number of major contract wins at PG and a large order at Med, as well as continued growth at A&D and PTD. Asia-Pacific again delivered broad-based, double-digit order growth for Siemens. The region comprising Africa, Near and Middle East and C.I.S. jumped 46% compared to the second quarter a year earlier, on the strength of large energy infrastructure orders at PTD.

		Revenue (location of customer)
										% Change
		Second quarter								vs. previous year								therein
(€ in millions)		2008				2007				Actual				Adjusted*				Currency				Portfolio
Germany			2,918				3,103				(6	)%			(7	)%			0	%			1	%
Europe (other than Germany)			5,795				5,692				2	%			1	%			(2	)%			3	%
Americas			4,921				4,756				3	%			9	%			(13	)%			7	%
Asia-Pacific			2,975				2,796				6	%			5	%			(4	)%			5	%
Africa, Near and Middle East, C.I.S.**			1,485				1,654				(10	)%			(5	)%			(4	)%			(1	)%
Siemens			18,094				18,001				1	%			2	%			(5	)%			4	%

Revenue in Europe outside Germany was on pace with 2% growth for the quarter. In the Americas, revenue in the U.S. edged up year-over-year despite strong currency translation effects, led by Med and A&D. On an organic basis, excluding currency translation effects of negative 16% and portfolio effects of positive 9%, U.S. revenues rose 7%. All Groups in Operations except PG reported higher revenue in Asia-Pacific year-over-year, with China contributing a 21% increase. Germany and the region comprising Africa, Near and Middle East and C.I.S. posted revenue below the prior-year level. From a Siemens’ Group perspective, the industrial Groups generated their strongest revenue growth in Asia-Pacific compared to the prior-year quarter, while revenue in the energy-related Groups grew fastest in the Americas and Europe outside Germany. Med’s healthcare portfolio found revenue growth in all regions, including new volume from the acquisition of Dade Behring Holdings, Inc.

(Dade Behring) between the periods under review. Revised estimates of project completion, mainly at PG, reduced revenue for Siemens as a whole by approximately €250 million.

		Second quarter
(€ in millions)		2008				2007				% Change
Gross profit on revenue			4,916				5,263				(7	)%
as percentage of revenue			27.2	%			29.2	%

Gross profit for the second quarter of fiscal 2008 fell 7% year-over-year and gross profit margin decreased to 27.2% from 29.2% a year earlier, mainly due to the charges posted at PG, TS and Siemens IT Solutions and Services as noted above. Most of the remaining Groups increased their gross margins, led by PTD and A&D which benefited from higher revenue and associated economies of scale.

		Second quarter
(€ in millions)		2008				2007				% Change
Research and development expenses			(918	)			(814	)			13	%
as percentage of revenue			5.1	%			4.5	%			—
Marketing, selling and general administrative expenses			(3,243	)			(2,926	)			11	%
as percentage of revenue			17.9	%			16.3	%			—
Other operating income			187				105				78	%
Other operating expense			(257	)			(161	)			60	%
Income from investments accounted for using the equity method, net			101				184				(45	)%
Financial income (expense), net			3				30				(90	)%

Research and development expenses increased to €918 million, up 13% from €814 million a year earlier. The primary factors in this increase were higher expenses at A&D and Med, mainly due to acquisitions. As A&D and Med gained a larger proportion of Siemens’ revenue, their higher-than-average R&D expense ratio relative to other Groups contributed to an increase in the R&D expense ratio for Siemens overall, which rose to 5.1% from 4.5% in the prior-year quarter.

Marketing, selling and general administrative (SG&A) expenses in the second quarter increased year-over-year, from €2.926 billion to €3.243 billion, primarily impacted by higher marketing and selling expenses due to an acquisition at A&D between the periods under review, as well as by higher expenses for Corporate items. Among these were a €32 million donation to the Siemens Foundation in the U.S and €64 million, including an impairment, relating to a regional sales organization in Germany.

Other operating income was €187 million in the second quarter of fiscal 2008, compared to €105 million a year earlier. The current period includes a gain of €30 million on the sale of the hydrocarbon service business at I&S.

Other operating expense increased year-over-year, to €257 million, from €161 million in the second quarter a year earlier. The difference was due primarily to higher expenses for compliance investigations in the current quarter, amounting to €148 million, compared to €13 million in the prior-year quarter. Other operating expense in the prior-year period also included a goodwill impairment of €52 million at a regional payphone unit included in Other Operations.

Income from investments accounted for using the equity method, net was €101 million compared to €184 million in the same period a year earlier. The change was due mainly to an equity investment loss of €45 million in the current period related to our equity stake in NSN, which was formed between the periods under review, and lower equity investment income related to BSH Bosch und Siemens Hausgeräte GmbH (BSH).

Financial income (expense), net decreased to €3 million, down from €30 million in the second quarter a year earlier, primarily impacted by higher expenses associated with asset retirement obligations.

		Second quarter
(€ in millions)		2008				2007				% Change
Income from continuing operations before income taxes			789				1,681				(53	)%
Income taxes			(224	)			(395	)			(43	)%
as percentage of income from continuing operations before income taxes			28	%			23	%			—
Income from continuing operations			565				1,286				(56	)%
Loss from discontinued operations, net of income taxes			(153	)			(27	)			>200	%
Net income			412				1,259				(67	)%
Net income attributable to minority interest			28				63				—
Net income attributable to shareholders of Siemens AG			384				1,196				(68	)%

Income from continuing operations before income taxes decreased 53% from €1.681 billion in the prior-year quarter to €789 million in the current quarter. The change year-over-year is due primarily to the charges at PG, TS and Siemens IT Solutions and Services noted above. The effective tax rate was 28% in the current quarter compared to 23% in the prior-year period, which included beneficial tax effects. Income from continuing operations decreased to €565 million from €1.286 billion in the second quarter a year earlier.

Discontinued operations include former Com activities as well as SV, which was sold to Continental AG in the first quarter of fiscal 2008. The former Com activities include the enterprise networks business, which is held for disposal, the telecommunications carrier activities transferred into NSN between the periods under review, and the mobile devices business sold to BenQ Corporation. In the second quarter, discontinued operations posted a loss of €153 million compared to a loss of €27 million in the same quarter a year earlier. The prior-year period included positive operating results at SV and at telecommunications carrier activities. The enterprise networks business took €109 million in severance charges and a €12 million asset impairment in the current period. A year earlier, this business took a goodwill impairment of €148 million.

Net income for Siemens in the second quarter was €412 million, compared to €1.259 billion in the same period a year earlier. Net income attributable to shareholders of Siemens AG was €384 million, down from €1.196 billion in the prior-year quarter.

Results of Siemens — First six months of fiscal 2008

The following discussion presents selected information for Siemens for the first six months of fiscal 2008:

In the first six months of fiscal 2008, Siemens’ orders and revenue expanded, with 10% growth in orders and 5% increase in revenue. On an organic basis, excluding the net effect of currency translation and portfolio transactions, orders rose 11% and revenue increased 4%. Europe outside Germany, Siemens’ largest regional market, contributed 10% order and revenue growth. In the Americas region, orders and revenue grew 4% and 5%, respectively. The Asia-Pacific region grew more rapidly from a smaller base, with 26% order growth and 10% revenue growth in the first six months compared to the same period a year earlier. The region comprised of Africa, Near and Middle East and C.I.S. saw a 24% surge in orders, while revenue remained stable year-over-year. Orders in Germany were level year-over-year, and revenue decreased 4%.

		New Orders (location of customer)
		Six months ended								% Change
		March 31,								vs. previous year								therein
(€ in millions)		2008				2007				Actual				Adjusted*				Currency				Portfolio
Germany			7,291				7,307				0	%			(3	)%			0	%			3	%
Europe (other than Germany)			15,828				14,335				10	%			10	%			(2	)%			2	%
Americas			11,936				11,429				4	%			8	%			(11	)%			7	%
Asia-Pacific			7,454				5,896				26	%			26	%			(5	)%			5	%
Africa, Near and Middle East, C.I.S.**			5,104				4,127				24	%			28	%			(5	)%			1	%
Siemens			47,613				43,094				10	%			11	%			(5	)%			4	%

The Asia-Pacific region and Europe outside Germany as well as the Africa, Near and Middle East and C.I.S. region posted double-digit order growth compared to the first six months a year earlier. The strongest increases in Europe outside Germany came at PG, which won a number of major new contracts, along with A&D, Med and PTD. I&S and TS took in fewer major orders in the region compared to the prior-year period. Within Asia-Pacific, orders climbed 26% including 39% growth in China and a 17% increase in India. I&S, A&D, PG and TS reported the strongest expansion in Asia-Pacific. Orders in the Africa, Near and Middle East and C.I.S. region also rose at a double-digit rate, highlighted by major contracts for PG and I&S in Russia. In the Americas region, the U.S. was the pace-setter with 9% growth, again powered by substantial new orders at PG plus new volume from A&D’s acquisition of UGS Corp. (UGS) and Med’s acquisition of Dade Behring between the periods under review. Excluding portfolio effects of positive 8% and negative currency translation effects of 16%, orders in the U.S. for the first half were up 17% year-over-year. A&D’s strong growth in Germany in the first six months was offset by order declines at TS and Siemens IT Solutions and Services in this region, compared to the prior-year period.

		Revenue (location of customer)
		Six months ended								% Change
		March 31,								vs. previous year								therein
(€ in millions)		2008				2007				Actual				Adjusted*				Currency				Portfolio
Germany			6,073				6,343				(4	)%			(6	)%			0	%			2	%
Europe (other than Germany)			11,978				10,918				10	%			8	%			(1	)%			3	%
Americas			9,584				9,085				5	%			9	%			(12	)%			8	%
Asia-Pacific			5,707				5,198				10	%			8	%			(4	)%			6	%
Africa, Near and Middle East, C.I.S.**			3,152				3,186				(1	)%			2	%			(3	)%			0	%
Siemens			36,494				34,730				5	%			4	%			(4	)%			5	%

Revenue in Siemens’ international business rose by 7% year-over-year, including strong organic growth in Europe outside Germany, the Americas and Asia-Pacific. From a Siemens’ Group perspective A&D, Med and

PTD saw double-digit increases in revenue compared to the first six months of the prior year. Within the Americas, new revenue from acquisitions was more than offset by the weakening of the U.S. dollar against the euro between the periods under review. Nevertheless the growth in the U.S. reached 3% year-over-year, led by A&D and Med. On an organic basis, excluding currency translation effects of negative 15% and portfolio effects of positive 10%, U.S. revenues were up 8%. Growth in Asia-Pacific was broad-based, as almost all Groups within Operations posted increases compared to the first six months a year earlier. China contributed 17% growth, on substantial revenue increases at A&D, TS and Osram. While revenue in India came in 2% lower than the prior-year period, the book-to-bill ratio for India rose to 1.5 in the current period. In the Africa, Near and Middle East and C.I.S. region, revenue rose excluding currency translation and portfolio effects, highlighted by 35% growth in Russia. Germany reported lower revenues for the first half of fiscal 2008 compared to the same period a year earlier, as growth at A&D, Med, PTD and Osram was outweighed by declines at TS, PG and Siemens Building Technologies (SBT).

		Six months ended
		March 31,
(€ in millions)		2008				2007				% Change
Gross profit on revenue			10,221				9,728				5	%
as percentage of revenue			28.0	%			28.0	%

Gross profit for the first six months of fiscal 2008 increased 5% year-over-year, in-line with growth in revenue. As a result, gross profit margin remained stable at 28.0%. Gross profit rose significantly at A&D, Med, PTD and I&S, which combined higher revenue with improved gross profit margins. In contrast, PG, TS and Siemens IT Solutions and Services posted a decrease in gross profits, primarily due to the second quarter project charges mentioned above.

		Six months ended
		March 31,
(€ in millions)		2008				2007				% Change
Research and development expenses			(1,765	)			(1,539	)			15	%
as percentage of revenue			4.8	%			4.4	%			—
Marketing, selling and general administrative expenses			(6,298	)			(5,598	)			13	%
as percentage of revenue			17.3	%			16.1	%			—
Other operating income			377				318				19	%
Other operating expense			(463	)			(659	)			(30	)%
Income from investments accounted for using the equity method, net			209				327				(36	)%
Financial income (expense), net			25				41				(39	)%

Research and development expenses increased to €1.765 billion from €1.539 billion a year earlier, led by higher outlays at A&D and Med, significantly influenced by business expansion between the periods under review. R&D expenses as a percentage of revenue rose to 4.8% from 4.4% in the previous period.

SG&A expenses rose to €6.298 billion, up from €5.598 billion in the first half of fiscal 2007. While fast-growing Groups within Operations were responsible for a substantial portion of this increase, costs for Corporate items also increased significantly. The latter increase includes costs associated with the transformation of Siemens’ corporate structure including costs at a regional sales organization in Germany.

Other operating income for the first half was higher than in the prior-year period, as increased gains from sales of real estate in the current period more than offset a decline in gains from the sales of businesses. Other operating expense came in below the level in the first six months of fiscal 2007, which included a previously disclosed antitrust penalty of €423 million. While both periods included expenses for outside advisors engaged in compliance investigations, those expenses were substantially higher in the current period at €241 million compared to €13 million a year earlier. Other operating expenses in the six months ended March 31, 2008 also included a goodwill impairment in the amount of €70 million related to the buildings and infrastructure activities which were acquired as part of the VA Technologie AG acquisition in fiscal 2005 and which are included in Other Operations. For comparison, the prior-year period included a goodwill impairment of €52 million at a regional payphone unit included in Other Operations.

Income from investments accounted for using the equity method, net declined year-over-year to €209 million in the current period, due primarily to negative equity investment income of €82 million related to NSN, which was formed between the periods under review, and lower equity investment income related to BSH.

Financial income (expense), net decreased to €25 million, down from €41 million in the first half a year earlier, primarily impacted by higher expenses associated with asset retirement obligations.

		Six months ended
		March 31,
(€ in millions)		2008				2007				% Change
Income from continuing operations before income taxes			2,306				2,618				(12	)%
Income taxes			(663	)			(711	)			(7	)%
as percentage of income from continuing operations before income taxes			29	%			27	%			—
Income from continuing operations			1,643				1,907				(14	)%
Income from discontinued operations, net of income taxes			5,244				140				>200	%
Net income			6,887				2,047				>200	%
Net income attributable to minority interest			71				112				—
Net income attributable to shareholders of Siemens AG			6,816				1,935				>200	%

Income from continuing operations before income taxes was €2.306 billion compared to €2.618 billion in the first six months a year earlier. The current period includes lower earnings in the Groups from operations due to substantial project charges especially in the second quarter for PG, TS and Siemens IT Solutions and Services as mentioned above, higher SG&A expenses, as well as a decline in equity investment income year-over-year, primarily due to NSN. The effective tax rate was 29% in the first six months of fiscal 2008 compared to 27% in the prior-year period. As a result, income from continuing operations in the first six months was €1.643 billion, down 14% from €1.907 billion a year earlier.

Discontinued operations include former Com activities as well as SV, which was sold to Continental AG in the first quarter of fiscal 2008. The former Com activities include the enterprise networks business, which is held for disposal, the carrier-related business transferred into NSN between the periods under review, and the mobile devices business sold to BenQ Corporation. In the first six months, income from discontinued operations was €5.244 billion compared to €140 million in the same period a year earlier. The difference is due mainly to an income of approximately €5.4 billion related to SV, including operating results along with a substantial gain on the sale of the business. The result for former Com activities in the first six months was a negative €188 million, including severance charges and an impairment of long-lived assets at the enterprise networks business, as well as expenses for outside advisors engaged in connection with investigations into alleged violations of anti-corruption laws and related matters. In the prior-year period the result was a negative €63 million, as an impairment at the enterprise networks business more than offset positive earnings from the carrier activities. For additional information with respect to discontinued operations, see “Notes to Interim Consolidated Financial Statements.”

Net income for Siemens in the first six months was €6.887 billion, compared to €2.047 billion in the same period a year earlier. Net income attributable to shareholders of Siemens AG was €6.816 billion, up from €1.935 billion in the prior-year.

Portfolio activities

At the beginning of November 2007, we completed our acquisition of Dade Behring. Med is now integrating Dade Behring into its Diagnostics division together with two other acquisitions made in prior years: Diagnostic Products Corporation (DPC) and the diagnostics division of Bayer AG (Bayer). The acquisition of Dade Behring expands Med’s position in the growing laboratory diagnostics market and is strongly complementary to the prior Diagnostics acquisitions. The aggregate consideration, including the assumption of debt, amounts to approximately €4.9 billion (including €69 million cash acquired). We have not yet finalized the purchase price allocation (PPA) for this transaction. More information on PPA and integration costs related to the acquisitions mentioned here are described in more detail below in “Segment information analysis.”

At the beginning of December 2007, we closed the sale of SV to Continental AG of Germany. Aggregate consideration was approximately €11.4 billion net of cash sold.

We completed certain other portfolio transactions during the first six months of fiscal 2008 which did not have a significant effect on our Interim Consolidated Financial Statements. For further information on acquisitions and dispositions, see “Notes to Interim Consolidated Financial Statements.”

Segment information analysis

Operations

Automation and Drives (A&D)

		Second quarter																Six months ended March 31,
										% Change																% Change
(€ in millions)		2008				2007				Actual				Adjusted*				2008				2007				Actual				Adjusted**
Group profit			712				526				35	%							1,367				976				40	%
Group profit margin			16.7	%			14.2	%											16.4	%			13.7	%
Revenue			4,271				3,711				15	%			11	%			8,359				7,101				18	%			14	%
New orders			4,814				4,154				16	%			14	%			9,597				8,173				17	%			14	%

A&D’s second-quarter Group profit was €712 million, as the Group operated at high capacity utilization in a strong market for automation and control solutions. Group profit includes PPA effects and integration costs related to A&D’s product lifecycle management (PLM) software business, acquired between the periods under review, and the acquisition of Flender Holdings GmbH. PPA effects were €35 million and integration costs were €2 million in the current quarter, compared to PPA effects of €10 million in the prior-year period. Revenue for A&D climbed 15% year-over-year, to €4.271 billion, and second-quarter orders rose 16%, to €4.814 billion. These topline figures included double-digit growth in Germany as well as internationally. During the quarter, Siemens entered into an agreement to sell A&D’s wireless modules business to a consortium with complementary expertise in the global machine-to-machine (M2M) modules business. Siemens also initiated a carve-out of A&D’s electronics assembly business.

Group profit for the first six months of fiscal 2008 rose 40% at A&D, to €1.367 billion, despite significantly higher PPA effects of €93 million and integration costs of €7 million only partly offset by a gain of €36 million in the prior quarter on the sale of a business. A year earlier, PPA effects in the first half amounted to €20 million. Including the new volume from UGS, A&D increased six-month orders by 17%, to €9.597 billion, and revenue by 18%, to €8.359 billion, with double-digit growth in all major regions of the world.

Industrial Solutions and Services (I&S)

		Second quarter																Six months ended March 31,
										% Change																% Change
(€ in millions)		2008				2007				Actual				Adjusted*				2008				2007				Actual				Adjusted**
Group profit			167				100				67	%							288				190				52	%
Group profit margin			7.8	%			4.6	%											6.6	%			4.5	%
Revenue			2,128				2,172				(2	)%			2	%			4,379				4,245				3	%			7	%
New orders			2,602				2,434				7	%			12	%			5,894				5,491				7	%			11	%

I&S posted Group profit of €167 million in the second quarter of fiscal 2008, benefiting from a €30 million gain on the sale of its hydrocarbon service business as well as payment of a performance incentive related to a large postal automation contract in the U.S. Revenue was €2.128 billion in the second quarter, near the prior-year level, and orders rose 7% year-over-year, to €2.602 billion. Both topline figures include negative currency translation effects and somewhat lower demand in Germany compared to the second quarter a year earlier.

Group profit for the first half of fiscal 2008 at I&S climbed 52% year-over-year, to €288 million, as all divisions posted higher earnings year-over-year. The strongest earnings contributions came from Metal Technologies and Infrastructure Logistics, which included the performance incentive mentioned above. Group profit in the current period also benefited from the €30 million divestment gain mentioned above. Both revenue

and orders for the first half rose compared to the prior year, despite negative currency translation effects. I&S expanded its water treatment business in Asia-Pacific with an acquisition in the second quarter. After the close of the quarter, I&S extended its capabilities with an acquisition in its metal technologies business.

Siemens Building Technologies (SBT)

		Second quarter																Six months ended March 31,
										% Change																% Change
(€ in millions)		2008				2007				Actual				Adjusted*				2008				2007				Actual				Adjusted**
Group profit			90				100				(10	)%							168				172				(2	)%
Group profit margin			7.5	%			7.5	%											7.0	%			6.8	%
Revenue			1,201				1,335				(10	)%			(5	)%			2,402				2,548				(6	)%			(1	)%
New orders			1,333				1,364				(2	)%			2	%			2,628				2,750				(4	)%			0	%

Group profit at SBT was €90 million in the second quarter of fiscal 2008. Group profit margin remained level year-over-year, even as revenue declined to €1.201 billion from the prior-year level which included completion of major projects in Europe and the Middle East. Orders totaled €1.333 billion. Both topline figures include negative currency effects related primarily to SBT’s U.S. business.

SBT’s Group profit for the first half of fiscal 2008 declined slightly compared to the prior year. Both revenue and orders came in lower, in the current period primarily due to strong negative currency translation effects in the Group’s U.S. business.

Osram

		Second quarter																Six months ended March 31,
										% Change																% Change
(€ in millions)		2008				2007				Actual				Adjusted*				2008				2007				Actual				Adjusted**
Group profit			122				125				(2	)%							248				248				0	%
Group profit margin			10.3	%			10.5	%											10.4	%			10.5	%
Revenue			1,188				1,189				(0	)%			6	%			2,381				2,363				1	%			6	%
New orders			1,188				1,189				(0	)%			6	%			2,381				2,363				1	%			6	%

Osram delivered €122 million in Group profit in the second quarter of fiscal 2008, on revenue of €1.188 billion. The Group’s continued rapid growth in Asia-Pacific and other emerging markets was offset by strong negative currency translation effects in Osram’s large NAFTA business, keeping reported results for the quarter near the level of the prior-year period.

First-half year Group profit at Osram matched the level a year earlier. While revenue and orders in the Americas declined on negative currency translation effects, growth in Asia-Pacific and other emerging markets resulted in higher six-month revenue and orders for the Group as a whole. After the close of the quarter, Osram announced an agreement to sell its Global Tungsten & Powders unit. Completion of the transaction is subject to regulatory review.

Transportation Systems (TS)

		Second quarter																Six months ended March 31,
										% Change																% Change
(€ in millions)		2008				2007				Actual				Adjusted*				2008				2007				Actual				Adjusted**
Group profit			(153	)			58												(131	)			105
Group profit margin			(15.6	)%			5.0	%											(6.5	)%			4.7	%
Revenue			982				1,161				(15	)%			(14	)%			2,030				2,234				(9	)%			(8	)%
New orders			838				714				17	%			19	%			2,278				1,933				18	%			20	%

In the second quarter of fiscal 2008, TS took €209 million in charges and posted a loss of €153 million. The largest single charge in the quarter related to the Shanghai Transrapid monorail. A majority of the charges resulted from a substantially completed review of projects at TS, including Combino. Revenue of €982 million came in lower than the prior-year period, due in part to lower billings on large projects in the Turnkey Systems division. Orders in both periods under review included a relatively low number of major new contracts.

TS recorded a loss of €131 million in the first half of fiscal 2008, including the charges related to the project review mentioned above as well as €32 million in additional charges related to Combino in the first quarter. While the first half a year earlier also included charges at major projects, they were largely offset by a €76 million net gain on the sale of the Group’s locomotive leasing business. Lower billings at large projects in the Turnkey Systems division contributed to the decline in first-half revenue compared to the prior-year. Orders increased 18% year-over-year to €2.278 billion, as TS booked a higher number of major orders in the first six months than in the same period a year earlier. TS intends to realign its organization and adjust its cost structure in coming quarters.

Power Generation (PG)

		Second quarter																Six months ended March 31,
										% Change																% Change
(€ in millions)		2008				2007				Actual				Adjusted*				2008				2007				Actual				Adjusted**
Group profit			(221	)			330												(86	)			499
Group profit margin			(7.5	)%			10.7	%											(1.5	)%			8.6	%
Revenue			2,932				3,072				(5	)%			1	%			5,901				5,798				2	%			6	%
New orders			6,062				5,017				21	%			29	%			11,954				10,034				19	%			24	%

PG completed a review of project risks in its fossil power turnkey solutions business in the second quarter. The review identified resource constraints leading to project delays, expiring supplier price agreements, and significantly higher commodity prices. Based on the review, the Group recorded charges of €559 million in the fossil power turnkey business and posted a loss of €221 million in the second quarter compared to Group profit of €330 million in the same period a year earlier. The largest single impact was €163 million at a technically challenging project in Finland (Olkiluoto), which was less than 50% complete at the close of the quarter. PG expects negative margin impacts in coming quarters, stemming from the project review mentioned above. The other businesses within PG were all profitable in both periods under review. These include wind power, industrial applications, products, and plant services. Equity investment income at PG was €21 million for the quarter, including a positive contribution from Areva NP. In the prior-year period, equity investments produced a negative result. PG’s revenue in the current quarter includes a reduction of approximately €200 million due to revised estimates of completion at some projects. Reported revenue also reflects negative currency translation effects related to growth in the Americas. Orders climbed 21%, to €6.062 billion, as demand more than doubled in the wind and product businesses compared to the same quarter a year earlier and PG won several new orders for high-efficiency combined-cycle power plants.

PG’s loss of €86 million in the first six months of fiscal 2008 was largely due to the project review charges in the second quarter of fiscal 2008 mentioned above in the fossil power turnkey solutions business as well as

further charges of approximately €200 million involving a number of large projects, booked in the first quarter of fiscal 2008. A year earlier, charges in this business in the first half-year were lower and confined more particularly to the project in Finland. Most of PG’s other businesses turned in higher earnings in the current period compared to the prior-year period. Similarly, equity investment income showed a positive swing year-over-year, contributing €36 million to Group profit in the current six months compared to a negative €1 million in the prior-year period. PG’s revenue in the first half increased to €5.901 billion, despite the revenue reduction noted above. Orders jumped 19% year-over-year, to €11.954 billion, from an already high basis of comparison in the prior-year. Major orders were most numerous in Europe and the Americas. PG continues to emphasize more selective order intake and increased engineering and project management capabilities, particularly in the fossil power turnkey solutions business. Equity investment income is expected to remain volatile in coming quarters.

Power Transmission and Distribution (PTD)

		Second quarter																Six months ended March 31,
										% Change																% Change
(€ in millions)		2008				2007				Actual				Adjusted*				2008				2007				Actual				Adjusted**
Group profit			220				143				54	%							424				273				55	%
Group profit margin			11.6	%			8.1	%											11.0	%			7.8	%
Revenue			1,903				1,756				8	%			13	%			3,859				3,484				11	%			15	%
New orders			2,864				2,476				16	%			23	%			5,673				5,622				1	%			5	%

PTD’s second-quarter Group profit jumped 54%, to €220 million. Group profit margin also rose significantly, on a favorable product mix and economies of scale associated with higher revenue. This latter development was particularly evident in results for the Group’s three largest businesses. PTD as a whole delivered 8% revenue growth and 16% order growth, showing its ability to respond to varying regional cycles in the global market for secure, high-efficiency power transmission and distribution. While revenue in the current period reflects significant order growth in Europe and Asia Pacific in prior periods, new contracts in the second quarter came primarily from robust demand in Africa and the Middle East.

First-half Group profit at PTD climbed 55% year-over-year, to €424 million, for the same reasons given above for the second quarter. All divisions within the Group increased their revenues, and strong operating leverage in the Group’s larger divisions generated sharply higher profits and earnings margins. Orders rose to €5.673 billion, an increase compared to the strong prior-year period despite negative currency translation effects.

Medical Solutions (Med)

		Second quarter																Six months ended March 31,
										% Change																% Change
(€ in millions)		2008				2007				Actual				Adjusted*				2008				2007				Actual				Adjusted**
Group profit			341				332				3	%							673				636				6	%
Group profit margin			12.5	%			13.4	%											12.5	%			13.9	%
Revenue			2,722				2,470				10	%			2	%			5,375				4,572				18	%			2	%
New orders			2,790				2,544				10	%			1	%			5,596				4,755				18	%			3	%

Med delivered Group profit of €341 million in the second quarter of fiscal 2008. Group profit margin was strongly influenced by PPA effects and integration costs associated with acquisitions by Med’s Diagnostics division, including the acquisition of Dade Behring between the periods under review. These factors took approximately 370 basis points from Group profit margin, including PPA effects of €50 million and integration costs of €52 million. A year earlier, PPA and integration costs were €37 million and €9 million, respectively, taking 190 basis points from Group profit margin. Furthermore, these prior-period effects were largely offset by gains on divestments as well as from the sale of a portion of Med’s stake in a joint venture, Draeger Medical AG

& Co. Including the PPA and integration effects mentioned above, the Diagnostics division posted earnings of €50 million on revenue of €817 million in the current quarter. Med’s imaging and IT business continued to deliver solid profitability despite increasing challenges in market conditions. Second-quarter revenue and orders rose 10% year-over-year, as new volume from the Dade Behring acquisition more than offset significant negative currency translation effects in the U.S. Med also won a major order from a particle therapy center, the first of its kind in northern Germany.

Med delivered €673 million in Group profit in the first half of fiscal 2008, up 6% from €636 million in the same period a year earlier. While Med’s imaging and IT businesses contributed the majority of Group profit in both periods, the Diagnostics division significantly increased its earnings contribution year-over-year despite substantial PPA and integration costs. Benefiting from the Dade Behring acquisition between the periods under review, Diagnostics posted €116 million in earnings on €1.529 billion in revenue in the current six months, compared to €47 million in earnings on €570 million in the prior-year period. PPA effects totaled €101 million (including €19 million of non-recurring inventory step-up charges) for the first half-year and integration costs totaled €87 million, cutting the Group profit margin for Med overall by 350 basis points. A year earlier, PPA effects and integration costs in the first half were €44 million (including €13 million of non-recurring inventory step-up charges) and €15 million, respectively, reducing Group profit margin by 130 basis points. These effects in the prior-year period were partly offset by divestment gains mentioned above. Six-month revenue and orders for Med rose 18% year-over-year, as new volume from acquisitions more than offset strong negative currency translation effects.

Siemens IT Solutions and Services

		Second quarter																Six months ended March 31,
										% Change																% Change
(€ in millions)		2008				2007				Actual				Adjusted*				2008				2007				Actual				Adjusted**
Group profit			(35	)			80												35				106				(67	)%
Group profit margin			(2.8	)%			5.9	%											1.3	%			4.0	%
Revenue			1,266				1,351				(6	)%			(4	)%			2,606				2,665				(2	)%			(1	)%
New orders			1,445				1,106				31	%			38	%			2,670				2,467				8	%			10	%

Results for Siemens IT Solutions and Services in the second quarter of fiscal 2008 were influenced strongly by charges at projects in the U.K. These charges had a net earnings impact of €89 million, leading to a loss of €35 million in the current quarter. Revenues declined to €1.266 billion in part due to cancellation of a large contract. In contrast, second-quarter orders rose sharply, to €1.445 billion, as the Group became the lead vendor to NSN for IT infrastructure services and won a major digital media contract from the BBC in England.

Results for Siemens IT Solutions and Services in the first half of fiscal 2008 largely reflect the factors mentioned above for the second quarter, as the project charges led to a decline in Group profit. Primarily the project cancellation and negative currency translation effects held revenue below the prior-year level, and orders climbed on the strength of the major new contracts with external customers mentioned above.

Strategic Equity Investments (SEI)

SEI includes results at equity from three companies in which Siemens holds a strategic equity stake: NSN, BSH, and Fujitsu Siemens Computers (Holding) B.V. (FSC). SEI contributed equity investment income of €14 million in the second quarter compared to €99 million in the same period a year earlier. The largest factor in this decline was NSN, which became part of SEI between the periods under review. NSN took charges of €100 million in the current quarter, primarily involving integration costs. As a result, Siemens incurred an equity investment loss of €45 million related to NSN in the current quarter.

Equity investment income for the first half of fiscal 2008 was €40 million, down from €151 million in the prior-year period. The decline was mainly due to NSN, which reported €220 million in charges for restructuring and integration programs. As a result, Siemens incurred an equity investment loss of €82 million at NSN.

Other Operations

Other Operations consist of centrally held business activities, shared services and other costs not allocated to a Group. In the second quarter of fiscal 2008, Siemens determined a course of action for each of the activities within Other Operations and began executing corresponding measures. Options under this transformation program include integration into an existing Siemens Group, divestment, joint venture or closure. Partly as a result of the program, sales for Other Operations declined to €630 million from €743 million in the prior-year quarter, and the loss from Other Operations narrowed to a negative €54 million from a negative €112 million in the second quarter a year earlier. Within business activities, earnings at Siemens Home and Office Communications Devices (SHC) remained stable near break-even. The closure of a regional payphone unit in Europe entailed €46 million in expenses, primarily for severance. In the prior-year period, this business had an impairment of €52 million. Regional expenses not allocated to the Groups decreased compared to the prior-year period.

For the first half of the fiscal year, the result of Other Operations was a negative €118 million compared to a negative €97 million in the prior-year. The difference is due primarily to a goodwill impairment of €70 million in the first quarter related to a buildings and infrastructure business that is held for disposal. SHC was profitable in both six-month periods, and costs not directly related to business activities declined year-over-year. Sales for Other Operations in the first six months of fiscal 2008 were €1.338 billion, down from €1.543 billion in the prior-year period.

Reconciliation to financial statements

Reconciliation to financial statements includes various categories of items which are not allocated to the Groups because the Managing Board has determined that such items are not indicative of Group performance.

Corporate items, pensions and eliminations

Corporate items, pensions and eliminations totaled a negative €499 million in the second quarter compared to a negative €169 million in prior-year period. The increase is due primarily to Corporate items, which totaled a negative €506 million compared to a negative €210 million in the same quarter a year ago. The largest factor within this change was an increase in costs for outside advisors engaged in connection with investigations into alleged violations of anti-corruption laws and related matters as well as remediation activities. These expenses rose to €148 million from €13 million in the prior-year quarter. Corporate items in the current period also include costs associated with the transformation of Siemens’ corporate structure. The largest of these was €64 million related to a regional sales organization in Germany, primarily including an impairment. Finally, the current quarter includes a €32 million donation to the Siemens Foundation in the U.S., which conducts prestigious national competitions and scholarship programs in mathematics, science and engineering.

In the first half of fiscal 2008, Corporate items, pensions and eliminations totaled a negative €792 million compared to a negative €820 million a year earlier. In the current period, expenses for outside advisors engaged in compliance investigations were significantly higher year-over-year, at €241 million compared to €13 million in the prior-year period. The current period also includes the factors mentioned above for the second quarter. The prior-year period included a €423 million antitrust penalty imposed by the European Commission on major providers of gas-isolated switchgear, effects related to hedging activities not qualifying for hedge accounting, and €54 million primarily to fund job placement companies for former Siemens employees affected by the bankruptcy of BenQ Mobile GmbH & Co. OHG.

Other interest expense

Other interest expense of Operations for the second quarter of fiscal 2008 was €74 million compared to €141 million a year earlier. The change year-over-year was mainly due to a decrease in intra-company financing of Operations by Corporate Treasury. For the first half of fiscal 2008 interest expense was €195 million compared to €229 million a year earlier.

Financing and Real Estate

Siemens Financial Services (SFS)

		Second quarter												Six months ended March 31,
(€ in millions)		2008				2007				% Change				2008				2007				% Change
Income before income taxes			101				137				(26	)%			178				220				(19	)%
														March 31, 2008				Sept. 30, 2007
Total assets															8,792				8,912				(1	)%

Income before income taxes at SFS was €101 million in the second quarter of fiscal 2008 compared to €137 million in the same period a year earlier. While both periods benefited from special dividends resulting from divestment gains by a company in which SFS holds an equity position, the dividend was higher in the prior-year quarter.

For the first half of fiscal 2008, income before income taxes was €178 million, down from €220 million a year earlier, with both periods benefiting from the special dividends mentioned above. The prior-year period also included a gain on a sale of an investment in the Equity Division.

Siemens Real Estate (SRE)

		Second quarter												Six months ended March 31,
(€ in millions)		2008				2007				% Change				2008				2007				% Change
Income before income taxes			60				42				43	%			199				111				79	%
Revenue			416				414				0	%			810				835				(3	)%
														March 31, 2008				Sept. 30, 2007
Total assets															3,167				3,091				2	%

Income before income taxes at SRE in the second quarter of fiscal 2008 was €60 million, up from €42 million a year earlier on increased gains from real estate sales.

The increase of 79% in income before income taxes for the first half of fiscal 2008 was also due primarily to higher gains from sales of real estate. Disposals of real estate are expected to increase in coming quarters.

Eliminations, reclassifications and Corporate Treasury

Income before income taxes from Eliminations, reclassifications and Corporate Treasury was a negative €2 million compared to a positive €31 million in the same period a year earlier. The difference was mainly due to negative results from hedging activities not qualifying for hedge accounting and lower interest income from intra-company financing.

In the first half of fiscal 2008, income before income taxes from eliminations, reclassifications and Corporate Treasury was €8 million compared to €77 million in the first half a year earlier. The difference year-over-year was mainly due to negative results from hedging activities not qualifying for hedge accounting.

SUPPLEMENTAL DATA

SIEMENS

Reconciliation to EBITDA (continuing operations)
(in millions of €)

The following table gives additional information on topics included in Group profit and Income before income taxes and provides a reconciliation to EBITDA (adjusted):

For the six months ended March 31, 2008 and 2007 (in millions of €)

										Income (loss)																																Depreciation
										from investments																																and impairments
										accounted for																																of property, plant
										using the equity								Financial income								EBIT																and equipment								EBITDA
		Group profit								method, net(1)								(expense), net(2)								(adjusted)(3)								Amortization(4)								and goodwill(5)								(adjusted)
		2008				2007				2008				2007				2008				2007				2008				2007				2008				2007				2008				2007				2008				2007
Operations Groups
Automation and Drives (A&D)			1,367				976				—				2				3				1				1,364				973				105				38				124				106				1,593				1,117
Industrial Solutions and Services (I&S)			288				190				5				10				(1	)			—				284				180				13				20				32				36				329				236
Siemens Building Technologies (SBT)			168				172				1				1				3				(2	)			164				173				30				29				29				37				223				239
Osram			248				248				2				—				—				2				246				246				12				15				102				108				360				369
Transportation Systems (TS)			(131	)			105				1				1				(3	)			(4	)			(129	)			108				1				2				35				25				(93	)			135
Power Generation (PG)			(86	)			499				36				(1	)			(5	)			(3	)			(117	)			503				26				36				80				75				(11	)			614
Power Transmission and Distribution (PTD)			424				273				12				8				1				7				411				258				11				9				39				38				461				305
Medical Solutions (Med)			673				636				15				42				9				17				649				577				135				105				164				100				948				782
Siemens IT Solutions and Services			35				106				23				2				7				—				5				104				23				30				88				112				116				246
Strategic Equity Investments (SEI)			40				151				40				151				—				—				—				—				—				—				—				—				—				—
Other Operations			(118	)			(97	)			1				4				1				(6	)			(120	)			(95	)			17				24				102				86				(1	)			15
Total Operations Groups			2,908				3,259				136				220				15				12				2,757				3,027				373				308				795				723				3,925				4,058
Reconciliation to financial statements
Corporate items, pensions and eliminations			(792	)			(820	)			38				64				68				12				(898	)			(896	)			42				24				(18	)			(34	)			(874	)			(906	)
Other interest income/expense			(195	)			(229	)			—				—				(195	)			(229	)			—				—				—				—				—				—				—				—
Total Operations			1,921				2,210				174				284				(112	)			(205	)			1,859				2,131				415				332				777				689				3,051				3,152
		Income before
		income taxes
Financing and Real Estate Groups
Siemens Financial Services (SFS)			178				220				35				33				113				178				30				9				2				2				139				125				171				136
Siemens Real Estate (SRE)			199				111				—				10				(26	)			(52	)			225				153				—				—				79				77				304				230
Total Financing and Real Estate			377				331				35				43				87				126				255				162				2				2				218				202				475				366
Eliminations, reclassifications and Corporate Treasury			8				77				—				—				50				120				(42	)			(43	)			—				—				—				—				(42	)			(43	)
Siemens			2,306				2,618				209				327				25				41				2,072				2,250				417				334				995				891				3,484				3,475