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

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

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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):

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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.

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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

Review report

Quarterly summary

Siemens financial calendar

 

 

 

 

 

Introduction

Siemens AG’s Interim Report complies with the applicable legal requirements of the Securities Trading Act (Wertpapierhandelsgesetz — WpHG) regarding the quarterly financial report, and comprises Interim Consolidated Financial Statements and an interim group management report in accordance with § 37x (3) WpHG. The Interim Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and its interpretations issued by the International Accounting Standards Board (IASB), as adopted by the European Union (EU). The Interim Consolidated Financial Statements also comply with IFRS as issued by the IASB. This Interim Report should be read in conjunction with our Annual Report, which includes detailed analysis of our operations and activities.

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Key figures(1)		Q3 and first nine months of fiscal 2008(2)

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

Interim group management report

Overview of financial results for the third quarter of fiscal 2008

In the third quarter of fiscal 2008, we reached a number of important milestones on our reorganization path. We believe that Siemens is becoming faster, more efficient and more focused as a company, with the timely and entrepreneurial approach that is required to remain on this course.

Orders rose 21%, to €23.677 billion, and revenue increased 10%, to €19.182 billion.

These results include negative currency translation effects of 7 percentage points on orders and 6 percentage points on revenue. On an organic basis, excluding the net effect of currency translation and portfolio transactions, orders rose 26% and revenue increased 13% compared to the third quarter a year earlier. Order growth was well-balanced, with double-digit expansion in all Sectors. Revenue growth included double-digit increases in Energy and Healthcare and 8% growth in Siemens’s largest Sector, Industry. The region comprising Europe, the Commonwealth of Independent States (C.I.S.) and Africa contributed 40% order growth and 12% revenue growth in the third quarter, including unusually large orders in Industry and Energy. Due in part to these large orders, the book-to-bill ratio for the quarter was 1.23.

Growth in Profit Total Sectors — a measure combining profit from the Industry, Energy and Healthcare Sectors — rose on particular strength in the Industry and Energy Sectors. Within Industry, the leading profit performers were the two Divisions created out of the former A&D Group: Industry Automation and Drive Technologies. Sector profit for Industry included a gain of €113 million on the sale of the wireless modules business in the Industry Automation Division. Sector Profit growth within Energy featured strong contributions from the two new Divisions created out of the former PTD Group: Power Transmission and Power Distribution. Siemens’ Healthcare Sector contributed 6% growth in Sector profit and sustained its profitability despite challenging market conditions.

Basic earnings per share (EPS) from continuing operations rose correspondingly, to €1.61 from €0.64 a year earlier. The primary factor in these increases was growth in Total Sectors profit. In addition, Strategic Equity Investments (SEI) posted profit of positive €1 million compared to a loss of €301 million in the third quarter a year earlier. The main reason for this change was significant progress at Nokia Siemens Networks B.V. (NSN), which improved its operating result and reduced restructuring and integration costs compared to the prior-year quarter. Siemens’ two Cross-Sector Businesses, Siemens Financial Services (SFS) and Siemens IT Solutions and Services, contributed €123 million in profit, unchanged year-over-year. In addition, expenses for legal and regulatory matters were lower in the current quarter.

Basic EPS for Siemens in the third quarter was €1.55 compared to €2.25 in the prior-year period. The comparison year-over-year is strongly influenced by discontinued operations, which posted a loss of €56 million in the current period in contrast to income of €1.457 billion in the prior-year period. The major factors in the latter result were a preliminary pre-tax non-cash gain of €1.7 billion resulting from the transfer of Siemens’ telecommunications carrier business into NSN and positive operating results at Siemens VDO Automotive (SV), only partly offset by an impairment of the enterprise networks business in the pre-tax amount of €355 million.

For comparison, free cash flow of €1.943 billion in the prior-year quarter benefited from a positive effect of approximately €1.1 billion related to the carve-out of SV, only partly offset by a €419 million penalty payment related to a European Union antitrust investigation. The Cash conversion rate for continuing operations in the third quarter was 1.05, above the target for the quarter.

ROCE for the first nine months of fiscal 2008 was 10.7%.

On a continuing basis, return on capital employed (ROCE) declined to 10.7% from 11.2% in the first nine months a year earlier. ROCE development in the current period was affected by a substantial increase in capital employed stemming from major acquisitions in fiscal 2008 and fiscal 2007. This effect more than offset higher income from continuing operations in the current period, and will continue through the current fiscal year.

Expenses for compliance investigations declined from the second-quarter level.

Expenses for outside advisors engaged in connection with investigations into alleged violations of anti-corruption laws and related matters as well as remediation activities were €119 million in the third quarter, down from €175 million in the second quarter of fiscal 2008. The total for continuing operations in the current quarter was €106 million, with the remaining €13 million related to discontinued operations. In the third quarter a year earlier, these costs totaled €125 million, including €54 million in continuing operations and €71 million in discontinued operations. For more information regarding these matters see “Notes to Interim Consolidated Financial Statements.”

Completing the second tranche of Siemens’ share buyback program raised total purchases to €4.0 billion.

The second share buyback tranche totaled €2.0 billion in purchases for 27,916,664 shares, and we completed it after the close of the quarter on July 22, 2008. The first tranche of the program, in the amounts of €2.0 billion and 24,854,541 shares, was completed at the beginning of the quarter, on April 8, 2008. Taking both tranches together, we spent a total of approximately €1.3 billion under the share repurchase program in the third quarter. For further information, see “Liquidity, capital resources and capital requirements” below.

Results of Siemens

Results of Siemens — Third quarter of fiscal 2008

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

Orders were €23.677 billion in the third quarter, up 21% from the prior-year period, while revenue rose 10% year-over-year, to €19.182 billion. On an organic basis, excluding currency translation and portfolio effects, orders increased 26% year-over-year and revenue rose 13%.

		New Orders (location of customer)
										% Change
		Third quarter								vs. previous year								therein
(€ in millions)		2008				2007				Actual				Adjusted*				Currency				Portfolio
Europe, C.I.S.**, Africa			12,827				9,188				40	%			42	%			(4)	%			2	%
therein Germany			3,328				2,780				20	%			19	%			0	%			1	%
Americas			6,136				5,578				10	%			21	%			(15)	%			4	%
therein U.S.			4,576				4,188				9	%			24	%			(19)	%			4	%
Asia, Australia, Middle East			4,714				4,728				0	%			2	%			(5)	%			3	%
therein China			1,455				1,420				2	%			3	%			(3)	%			2	%
therein India			643				601				7	%			11	%			(11)	%			7	%
Siemens			23,677				19,494				21	%			26	%			(7)	%			2	%

Order growth in the third quarter was well-balanced, with double-digit expansion in all Sectors. On a geographic basis, orders grew 40% in Siemens’ largest region, which includes Europe, the Commonwealth of Independent States (C.I.S.) and Africa. Large orders in the Industry Sector and the Energy Sector contributed strongly to the increase. In the Americas, orders rose 10%, despite strong negative currency translation effects of 15%. On an organic basis, orders in the Americas climbed 21%, in part due to an exceptionally large order in the U.S. in the Energy Sector. Orders for the region consisting of Asia, Australia and the Middle East were nearly the same year-over-year, despite a higher level of large orders in the prior-year period. China and India continued to expand more rapidly than the region as a whole.

		Revenue (location of customer)
										% Change
		Third quarter								vs. previous year								therein
(€ in millions)		2008				2007				Actual				Adjusted*				Currency				Portfolio
Europe, C.I.S.**, Africa			10,303				9,200				12	%			12	%			(2)	%			2	%
therein Germany			3,260				2,871				14	%			13	%			0	%			1	%
Americas			4,935				4,706				5	%			15	%			(14)	%			4	%
therein U.S.			3,617				3,764				(4)	%			7	%			(15)	%			4	%
Asia, Australia, Middle East			3,944				3,611				9	%			12	%			(6)	%			3	%
therein China			1,213				976				24	%			26	%			(4)	%			2	%
therein India			491				370				33	%			37	%			(16)	%			12	%
Siemens			19,182				17,517				10	%			13	%			(6)	%			3	%

Revenue growth in the third quarter included double-digit increases in the Energy and the Healthcare Sectors and 8% growth in Siemens’s largest Sector, Industry. On a geographic basis, revenue rose 12% in the Europe, C.I.S., Africa region, on particular strength in Energy and Healthcare. The Americas, supported by a strong Energy Sector, contributed a 5% increase in reported revenue, even with currency translation effects taking 14 percentage points from growth. On broad-based growth in the Industry Sector, the Asia, Australia, Middle East region saw revenue growing by 9%, including double-digit increases in China and India.

		Third quarter
(€ in millions)		2008				2007				% Change
Gross profit on revenue			5,876				5,226				12	%
as percentage of revenue			30.6	%			29.8	%

Gross profit for the third quarter of fiscal 2008 rose 12% year-over-year, with all Sectors contributing to the increase. Gross profit margin improved to 30.6%, driven by positive margin developments in Industry and Energy.

		Third quarter
(€ in millions)		2008				2007				% Change
Research and development expenses			(916	)			(898	)			2	%
as percentage of revenue			4.8	%			5.1	%			—
Marketing, selling and general administrative expenses			(3,195	)			(3,069	)			4	%
as percentage of revenue			16.7	%			17.5	%			—
Other operating income			259				144				80	%
Other operating expense			(144	)			(207	)			(30	)%
Income (loss) from investments accounted for using the equity method, net			74				(222	)			n.a.
Financial income (expense), net			94				(32	)			n.a.

Research and development (R&D) expenses increased 2% to €916 million in the third quarter. As in all Sectors revenue grew faster than R&D expenses for the quarter, R&D expenses as a percentage of revenue declined to 4.8% compared to 5.1% in the prior-year period.

Marketing, selling and general administrative (SG&A) expenses also increased more slowly than revenue in the third quarter. As a result, SG&A expenses of €3.195 billion came in at 16.7% of revenue compared to 17.5% in the third quarter a year earlier.

Other operating income was €259 million in the third quarter of fiscal 2008, compared to €144 million a year earlier. The current period includes a pre-tax gain of €113 million on the sale of the wireless modules business in the Industry Sector.

Other operating expense decreased year-over-year, to €144 million. For comparison, €207 million in Other operating expense in the prior-year period included higher outlays for legal and regulatory matters. Expenses for outside advisors engaged in connection with investigations into alleged violations of anti-corruption laws and related matters as well as remediation activities increased from €54 million in the prior-year period to €106 million in the current quarter.

Income (loss) from investments accounted for using the equity method, net was a positive €74 million compared to a negative €222 million in the same period a year earlier. The change was related mainly to our equity stake in NSN. The equity investment loss associated with NSN was €21 million in the third quarter, compared to an equity investment loss of €371 million in the prior-year period.

Financial income (expense), net swung to a positive €94 million from a negative €32 million in the third quarter a year earlier, due primarily to a combination of lower indebtedness in Siemens operating businesses as well as lower interest rates on U.S. dollar denominated debt.

		Third quarter
(€ in millions)		2008				2007				% Change
Income from continuing operations before income taxes			2,048				942				117	%
Income taxes			(573	)			(334	)			72	%
as percentage of income from continuing operations before income taxes			28	%			35	%			—
Income from continuing operations			1,475				608				143	%
Income (loss) from discontinued operations, net of income taxes			(56	)			1,457				n.a.
Net income			1,419				2,065				(31	)%
Net income attributable to minority interest			45				39				—
Net income attributable to shareholders of Siemens AG			1,374				2,026				(32	)%

Income from continuing operations before income taxes rose substantially year-over-year, to €2.048 billion. The primary drivers of the improvement were higher profits in all Sectors, particularly in Industry, including the €113 million pre-tax gain on the sale of a business mentioned above, as well as a reduced equity investment loss related to NSN. The effective tax rate in the third quarter was 28%. The reduction compared to 35% in the prior-year period stemmed mainly from the above-mentioned swing in Income (loss) from investments accounted for using the equity method, net. In connection with the effects noted above, this resulted in significantly higher Income from continuing operations compared to the third quarter of fiscal 2007.

Discontinued operations in the periods under review 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; telecommunications carrier activities that were transferred into NSN in the third quarter of fiscal 2007; and the mobile devices business sold to BenQ Corporation. In the third quarter of this year, discontinued operations posted a loss of €56 million. For comparison, income from discontinued operations of €1.457 billion in the prior-year quarter included a €1.702 billion preliminary, pre-tax, non-cash gain associated with the transfer of Siemens’ carrier-related assets into NSN, partially offset by an impairment of the enterprise networks business in the pre-tax amount of €355 million.

Net income for Siemens in the third quarter was €1.419 billion, and Net income attributable to shareholders of Siemens AG was €1.374 billion. In the same quarter a year earlier, Net income was €2.065 billion, with €2.026 billion attributable to shareholders of Siemens AG. The difference in Net income year-over-year was strongly influenced by discontinued operations as described above.

Results of Siemens — First nine months of fiscal 2008

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

In the first nine months of fiscal 2008, orders were €71.290 billion, up 14% from the prior-year period, while revenue rose 7% year-over-year, to €55.676 billion. On an organic basis, excluding currency translation and portfolio effects, orders increased 17% year-over-year and revenue rose 8%.

		New Orders (location of customer)
		Nine months ended								% Change
		June 30,								vs. previous year								therein
(€ in millions)		2008				2007				Actual				Adjusted*				Currency				Portfolio
Europe, C.I.S.**, Africa			37,992				32,543				17	%			17	%			(2)	%			2	%
therein Germany			10,619				10,087				5	%			3	%			0	%			2	%
Americas			18,072				17,007				6	%			13	%			(13)	%			6	%
therein U.S.			13,425				12,319				9	%			19	%			(17)	%			7	%
Asia, Australia, Middle East			15,226				13,038				17	%			19	%			(5)	%			3	%
therein China			4,255				3,428				24	%			26	%			(4)	%			2	%
therein India			1,832				1,615				13	%			12	%			(5)	%			6	%
Siemens			71,290				62,588				14	%			17	%			(6)	%			3	%

Order growth of 14% in the first nine months included double-digit increases in all Sectors. Industry grew fastest in the Asia, Australia, Middle East region, while Energy logged strong order growth in the Europe, C.I.S., Africa region and the Americas. Healthcare expanded in all three regions, including new volume from the acquisition of Dade Behring Holdings, Inc. (Dade Behring) between the periods under review. The large third-quarter orders in Industry and Energy mentioned earlier drove 17% order growth in the Europe, C.I.S., Africa region. Orders rose 6% in the Americas, including strong negative currency translation effects only partly offset by new volume from acquisitions. On an organic basis, orders were up 13% in the Americas compared to the third quarter a year earlier. Orders for the Asia, Australia, Middle East region increased 17%, supported by a higher volume of large orders in the Industry Sector compared to the prior-year period.

		Revenue (location of customer)
		Nine months ended								% Change
		June 30,								vs. previous year								therein
(€ in millions)		2008				2007				Actual				Adjusted*				Currency				Portfolio
Europe, C.I.S.**, Africa			29,708				27,710				7	%			6	%			(1)	%			2	%
therein Germany			9,333				9,214				1	%			(1	)%			0	%			2	%
Americas			14,519				13,791				5	%			10	%			(12)	%			7	%
therein U.S.			10,802				10,745				1	%			8	%			(15)	%			8	%
Asia, Australia, Middle East			11,449				10,746				7	%			7	%			(4)	%			4	%
therein China			3,429				2,876				19	%			21	%			(4)	%			2	%
therein India			1,287				1,181				9	%			6	%			(6)	%			9	%
Siemens			55,676				52,247				7	%			8	%			(5)	%			4	%

The increase in revenue for the first nine months was fueled by double-digit growth in Energy and Healthcare. The Industry Sector grew 6% compared to the prior-year period. Revenue growth was well-balanced regionally on a nine-month basis. The Europe, C.I.S., Africa region expanded 7% year-over-year, with revenue growth in all Sectors. The Americas posted a 5% increase, despite negative currency translation effects that took 15 percentage points from U.S. revenue growth. On an organic basis, revenues were up 8% in the U.S. and 10% for the Americas region. The Asia, Australia, Middle East region came in with 7% revenue expansion, including double-digit growth in Industry and Healthcare. Revenue in China climbed 19% and 9% in India compared to the first nine months a year earlier.

		Nine months ended
		June 30,
(€ in millions)		2008				2007				% Change
Gross profit on revenue			16,097				14,954				8	%
as percentage of revenue			28.9	%			28.6	%

Gross profit for the first nine months of fiscal 2008 increased 8% year-over-year on substantial rises at Industry and Healthcare. This resulted in an increase in gross profit as a percentage of revenue despite significant project charges, including previously reported project charges of €857 million in the second quarter of fiscal 2008. These charges occurred in the Fossil Power Generation Division of the Energy Sector, the Mobility Division of the Industry Sector, and at Siemens IT Solutions and Services.

		Nine months ended
		June 30,
(€ in millions)		2008				2007				% Change
Research and development expenses			(2,681	)			(2,437	)			10	%
as percentage of revenue			4.8	%			4.7	%			—
Marketing, selling and general administrative expenses			(9,493	)			(8,667	)			10	%
as percentage of revenue			17.1	%			16.6	%			—
Other operating income			636				462				38	%
Other operating expense			(607	)			(866	)			(30)	%
Income from investments accounted for using the equity method, net			283				105				170	%
Financial income (expense), net			119				9				>200	%

Nine-month R&D expenses increased to €2.681 billion from €2.437 billion a year earlier, led by higher expenses at the Industry Automation Division in the Industry Sector and Healthcare’s Diagnostics Division. Acquisitions made significant contributions to higher R&D expenses in both Divisions. For Siemens overall, R&D expenses as a percentage of revenue rose to 4.8%, from 4.7% in the same period a year earlier.

SG&A expenses rose to €9.493 billion, up from €8.667 billion in the first nine months of fiscal 2007. The Industry Automation Division and the Diagnostics Division again led the increase, in both cases largely due to business expansion. Further, SG&A expenses in the current period included expenses associated with the transformation of Siemens’ corporate structure including costs at a regional sales organization in Germany, and a €32 million donation to the Siemens Foundation in the U.S.

Other operating income for the first nine months was €636 million, compared to €462 million in the prior-year period. This increase is due mainly to higher gains from sales of real estate and sales of businesses, including the €113 million pre-tax gain on the sale of the wireless modules business mentioned earlier. The prior-year period included a gain of €76 million on the sale of Siemens Dispolok GmbH Germany, which was part of Industry.

Other operating expense came in below the level of the first nine months of fiscal 2007. The prior-year period was affected by significant expenses for legal and regulatory matters, including a previously disclosed antitrust penalty of €423 million, as well as €81 million primarily to fund job placement companies for former Siemens employees affected by the bankruptcy of BenQ Mobile GmbH & Co. OHG (BenQ). While both periods included expenses for outside advisors engaged in connection with investigations into alleged violations of anti-corruption laws and related matters as well as remediation activities, those expenses were substantially higher in the current period at €347 million compared to €67 million a year earlier. In addition, the first nine months of fiscal 2008 include a goodwill impairment of €70 million related to a buildings and infrastructure business that is held for disposal. For comparison, the prior-year period included a goodwill impairment of €52 million at a regional payphone unit. Both businesses are included in Other Operations.

Income from investments accounted for using the equity method, net rose year-over-year to €283 million in the current period, due primarily to a significantly reduced equity investment loss related to NSN, only partly offset by lower equity investment income related to BSH Bosch und Siemens Hausgeräte GmbH (BSH).

Financial income (expense), net increased to €119 million, up from €9 million in the first nine months a year earlier, on higher Interest income (expense), net.

		Nine months ended
		June 30,
(€ in millions)		2008				2007				% Change
Income from continuing operations before income taxes			4,354				3,560				22	%
Income taxes			(1,236	)			(1,045	)			18	%
as percentage of income from continuing operations before income taxes			28	%			29	%			—
Income from continuing operations			3,118				2,515				24	%
Income from discontinued operations, net of income taxes			5,188				1,597				>200	%
Net income			8,306				4,112				102	%
Net income attributable to minority interest			116				151				—
Net income attributable to shareholders of Siemens AG			8,190				3,961				107	%

Income from continuing operations before income taxes was €4.354 billion compared to €3.560 billion in the first nine months a year earlier. The increase is primarily due to higher gross profit, lower expenses for legal and regulatory matters, and a significantly reduced loss from our stake in NSN, partly offset by higher SG&A expenses. The effective tax rate was 28% in the first nine months of fiscal 2008 compared to 29% in the prior-year period. As a result, income from continuing operations in the first nine months was €3.118 billion, up 24% from €2.515 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 telecommunications carrier activities transferred into NSN in the third quarter of fiscal 2007, and the mobile devices business sold to BenQ Corporation. In the first nine months, income from discontinued operations was €5.188 billion compared to €1.597 billion in the same period a year earlier. The current period includes a result 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 nine months of fiscal 2008 was a negative €255 million, including severance charges and impairments 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. The prior-year period included a €1.702 billion preliminary, pre-tax non-cash gain associated with the transfer of Siemens’ carrier-related assets into NSN as well as positive operating results at SV, partially offset by impairments totaling €503 million. For additional information with respect to discontinued operations, see “Notes to Interim Consolidated Financial Statements.”

Net income for Siemens in the first nine months was €8.306 billion, compared to €4.112 billion in the same period a year earlier. Net income attributable to shareholders of Siemens AG was €8.190 billion, up from €3.961 billion in the prior-year.

Portfolio activities

At the beginning of November 2007, Siemens completed the acquisition of Dade Behring, USA, a leading manufacturer and distributor of diagnostic products and services to clinical laboratories. Dade Behring was consolidated as of November 2007 and integrated into Sector Healthcare’s Diagnostics division. The aggregate consideration, including the assumption of debt, amounts to approximately €4.9 billion (including €69 million cash acquired). The company has not yet finalized the purchase price allocation (PPA). Further information on PPA and integration costs related to the acquisitions mentioned here is given below in “Segment information analysis.”

At the beginning of December 2007, Siemens sold its SV activities to Continental AG, Hanover, Germany for a sales price of approximately €11.4 billion.

We completed certain other portfolio transactions during the first nine 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.” For portfolio activities after the end of the third quarter of fiscal 2008 see “Subsequent events.”

Segment information analysis

Sectors

Industry — Third quarter of fiscal 2008

		Third quarter
										% Change								therein
Sector (€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Profit			1,143				822				39	%
Profit margin			12.1	%			9.4	%
New orders			11,508				9,149				26	%			31	%			(6	)%			1	%
Revenue			9,423				8,751				8	%			12	%			(5	)%			1	%

New orders by Divisions		Third quarter
										% Change								therein
(€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Industry Automation			2,214				2,040				9	%			10	%			(4	)%			3	%
Drive Technologies			2,407				2,251				7	%			10	%			(3	)%			0	%
Building Technologies			1,512				1,510				0	%			5	%			(6	)%			1	%
Osram			1,109				1,124				(1	)%			5	%			(7	)%			1	%
Industry Solutions			2,040				1,759				16	%			21	%			(6	)%			1	%
Mobility			2,952				1,159				155	%			165	%			(10	)%			0	%

Revenue by Divisions		Third quarter
										% Change								therein
(€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Industry Automation			2,202				1,921				15	%			16	%			(4	)%			3	%
Drive Technologies			2,266				1,973				15	%			18	%			(3	)%			0	%
Building Technologies			1,442				1,396				3	%			8	%			(6	)%			1	%
Osram			1,109				1,124				(1	)%			5	%			(7	)%			1	%
Industry Solutions			1,728				1,561				11	%			16	%			(6	)%			1	%
Mobility			1,403				1,456				(4	)%			(1	)%			(3	)%			0	%

		Division Profit												Division Profit Margin
		Third quarter												Third quarter
(€ in millions)		2008				2007				% Change				2008				2007
Industry Automation			467				244				91	%			21.2	%			12.7	%
Drive Technologies			344				246				40	%			15.2	%			12.5	%
Building Technologies			95				97				(2	)%			6.6	%			6.9	%
Osram			111				116				(4	)%			10.0	%			10.3	%
Industry Solutions			98				81				21	%			5.7	%			5.2	%
Mobility			39				38				3	%			2.8	%			2.6	%

     In the third quarter of fiscal 2008, the Industry Sector combined 8% revenue growth with a higher profit margin to produce a substantial increase in Sector profit compared to the same quarter a year earlier. Sector profit of €1.143 billion benefited also from a €113 million gain on the sale of the Sector’s wireless modules business, and both periods under review included purchase price accounting (PPA) effects and integration costs related to acquisitions.

     The largest Divisions within the Sector — Industry Automation, Drive Technologies and Industry Solutions — drove the increases in Sector revenue and Sector profit year-over-year. The three other Divisions within the Sector maintained their third-quarter Division profit at or near prior-year levels.

     Revenue for the Industry Sector rose to €9.423 billion from €8.751 billion in the third quarter a year ago. Orders grew even faster, coming in 26% higher at €11.508 billion. Order growth was broad-based, highlighted by a €1.4 billion rolling stock order in Europe and strong global demand for metals technologies solutions. Even without the rolling stock order, the book-to-bill ratio for the Sector increased to 1.07 year-over-year.

     Working in strong markets, the Industry Automation and Drive Technologies Divisions maintained high capacity utilization and continued to achieve volume-driven economies of scale. The result was significant profit growth in both Divisions.

     Industry Automation contributed €467 million to Sector profit in the quarter, up sharply year-over-year on a 15% increase in revenue. This represents high double-digit Division profit growth even without the €113 million gain mentioned above, which came within Industry Automation. Both periods under review were affected by PPA and integration effects related to the acquisition of UGS Corp. (UGS) during the third quarter of fiscal 2007. These factors took approximately 190 basis points from profit margin in the current quarter, including PPA effects of €36 million and integration costs of €5 million. In the same quarter a year earlier, PPA effects and integration costs were €49 million and €11 million, respectively, and cut approximately 310 basis points from profit margin.

     Drive Technologies contributed €344 million to Sector profit, a 40% increase compared to the prior-year quarter, on a 15% increase in revenue. Both periods included PPA effects of €10 million related to the acquisition of Flender Holding GmbH (Flender) in fiscal 2005. The impact on profit margin was approximately 40 basis points in the current period and approximately 50 basis points in the prior-year quarter.

     The Industry Solutions Division posted 21% profit growth on an 11% rise in revenue, including double-digit topline growth and significant margin improvement in the fast-growing metals technologies industry.

     The Osram and Building Technologies Divisions face growth challenges related to adverse currency translation effects from their substantial U.S. presence as well as slowing economic growth in Western Europe and the U.S. Yet both maintained third-quarter profit close to prior-year levels. For comparison, profit at Building Technologies in the prior-year quarter benefited from a gain on the sale of a business.

     Mobility held its Division profit level with the prior-year period, at €39 million. Orders of €2.952 billion included the €1.4 billion contract for more than 300 trains from the Belgian state railway system, Siemens’ largest-ever rolling stock order. As part of its “Mobility in Motion” transformation program to improve its cost structure, Mobility intends to take charges in the fourth quarter depending on the progress of labor negotiations.

Industry — First nine months of fiscal 2008

		Nine months ended June 30,
										% Change								therein
Sector (€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Profit			3,068				2,503				23	%
Profit margin			11.1	%			9.6	%
New orders			32,540				28,498				14	%			16	%			(4	)%			2	%
Revenue			27,677				26,115				6	%			8	%			(4	)%			2	%

New orders by Divisions		Nine months ended June 30,
										% Change								therein
(€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Industry Automation			6,732				5,684				18	%			12	%			(4	)%			10	%
Drive Technologies			7,586				6,774				12	%			15	%			(3	)%			0	%
Building Technologies			4,610				4,748				(3	)%			1	%			(5	)%			1	%
Osram			3,490				3,487				0	%			6	%			(7	)%			1	%
Industry Solutions			6,601				6,072				9	%			12	%			(4	)%			1	%
Mobility			6,033				3,950				53	%			58	%			(5	)%			0	%

Revenue by Divisions		Nine months ended June 30,
										% Change								therein
(€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Industry Automation			6,413				5,372				19	%			13	%			(4	)%			10	%
Drive Technologies			6,446				5,628				15	%			18	%			(3	)%			0	%
Building Technologies			4,308				4,415				(2	)%			2	%			(5	)%			1	%
Osram			3,490				3,487				0	%			6	%			(7	)%			1	%
Industry Solutions			5,022				4,763				5	%			8	%			(4	)%			1	%
Mobility			4,194				4,477				(6	)%			(3	)%			(3	)%			0	%

		Division Profit												Division Profit Margin
		Nine months ended June 30,												Nine months ended June 30,
(€ in millions)		2008				2007				% Change				2008				2007
Industry Automation			1,253				798				57	%			19.5	%			14.9	%
Drive Technologies			891				642				39	%			13.8	%			11.4	%
Building Technologies			297				296				0	%			6.9	%			6.7	%
Osram			359				364				(1	)%			10.3	%			10.4	%
Industry Solutions			310				229				35	%			6.2	%			4.8	%
Mobility			(33	)			175				—				(0.8	)%			3.9	%

     For the first nine months of fiscal 2008, profit at the Industry Sector was €3.068 billion, up 23% compared to €2.503 billion in the previous nine-month period. As in the third quarter, the main drivers of Sector profit growth for the first nine months were the Industry Automation, Drive Technologies and Industry Solutions Divisions. The Industry Automation Division benefited from a pre-tax gain of €113 million from the sale of its wireless modules business mentioned above as well as from a gain of €38 million from the sale of another business that was divested during the first quarter of fiscal 2008. Both periods under review included PPA effects and integration costs stemming from Industry Automation’s acquisition of UGS. PPA effects were €110 million and integration costs were €12 million in the current nine months. PPA and integration costs in the prior-year nine-month period were the same as for the third quarter of the prior-year, when the acquisition occurred. PPA effects within the Drive Technologies Division resulting from the acquisition of Flender were stable year-over-year with €29 million in the current period compared to €31 million in the previous year period.

Within Industry Solutions, the Division’s metal technologies business made the largest contribution to the Division’s profit growth. The Division also benefited from a €30 million gain on the sale of its hydrocarbon business.

Profit at Building Technologies and Osram for the first nine months of fiscal 2008 was nearly level with the prior-year period. Profit at Building Technologies in the prior-year period included the gain on the sale of a business mentioned above.

In the first nine months of fiscal 2008, Mobility recorded a loss of €33 million and took charges of €209 million in the second quarter resulting from reviews of major project risks, with the largest single charge related to the Shanghai Transrapid monorail. Mobility also took €32 million in charges related to Combino railcar in the first quarter of the current nine-month period. In the first three quarters a year earlier, Mobility posted a profit of €175 million, as charges related to major projects, including Combino, were partially offset by a net gain of €76 million on the sale of the Division’s locomotive leasing business.

     Orders of €32.540 billion and revenue of €27.677 billion for the Industry Sector were up 14% and 6%, respectively, compared to the first nine months a year ago. On a regional basis, the Sector showed double-digit order growth in the Asia, Australia, Middle East region and the Europe, C.I.S., Africa region. Order intake in the Americas declined slightly year-over-year due to strong negative currency translation effects. The revenue growth rate for the Industry Sector was strongest in Asia, Australia, Middle East, rising slightly in the Europe, C.I.S., Africa region and remaining stable in the Americas. The Industry Automation and Drive Technologies Divisions both achieved double-digit growth rates for orders and revenue, while orders and revenue at Building Technologies were slightly down and nearly stable at Osram year-over-year including strong negative currency translation effects. Mobility’s order intake for the first nine months of fiscal 2008 increased sharply, benefiting from the large rolling stock order in Belgium mentioned above, while revenue in the current period declined due to lower billings at large projects in the Division’s turnkey systems business.

Energy — Third quarter of fiscal 2008

Sector		Third quarter
										% Change								therein
(€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Profit			615				442				39	%
Profit margin			10.6	%			9.1	%
New orders			8,077				6,556				23	%			33	%			(10	)%			0	%
Revenue			5,829				4,880				19	%			26	%			(7	)%			0	%

New orders by Divisions		Third quarter
										% Change								therein
(€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Fossil Power Generation			2,083				2,232				(7	)%			0	%			(7	)%			0	%
Renewable Energy			2,122				731				190	%			231	%			(41	)%			0	%
Oil & Gas			1,550				1,246				24	%			27	%			(3	)%			0	%
Power Transmission			1,588				1,569				1	%			7	%			(6	)%			0	%
Power Distribution			906				844				7	%			14	%			(7	)%			0	%

Revenue by Divisions		Third quarter
										% Change								therein
(€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Fossil Power Generation			2,096				1,874				12	%			19	%			(7	)%			0	%
Renewable Energy			631				323				95	%			115	%			(20	)%			0	%
Oil & Gas			1,030				813				27	%			31	%			(4	)%			0	%
Power Transmission			1,401				1,249				12	%			18	%			(6	)%			0	%
Power Distribution			776				686				13	%			19	%			(6	)%			0	%

		Division Profit												Division Profit Margin
		Third quarter												Third quarter
(€ in millions)		2008				2007				% Change				2008				2007
Fossil Power Generation			212				199				7	%			10.1	%			10.6	%
Renewable Energy			72				29				148	%			11.4	%			9.0	%
Oil & Gas			95				62				53	%			9.2	%			7.6	%
Power Transmission			147				85				73	%			10.5	%			6.8	%
Power Distribution			88				66				33	%			11.3	%			9.6	%

     Siemens’ Energy Sector generated €615 million in profit in the third quarter, a substantial increase compared to the prior-year period. All Divisions reported higher profits, with the majority contributing high double-digit increases.

     Revenue growth was also robust and well-distributed among the Divisions. Sector revenue climbed 19% to €5.829 billion, with all Divisions contributing to the increase. Orders grew faster still, rising 23% over the prior-year quarter to reach €8.077 billion. While orders came in lower at the Fossil Power Generation Division, Renewable Energy more than compensated with a substantial increase compared to the same quarter a year earlier.

     Nearly half of the Energy Sector’s profit growth came from the Power Transmission and Power Distribution Divisions, which were formerly combined in Siemens’ Power Transmission and Distribution Group (PTD). These businesses continued to gain volume-driven economies of scale by successfully meeting demand for higher efficiency and security in regional power grids. As a result, both Divisions delivered strong profit growth and profit margins in their target ranges.

     Revenue grew 12% at Power Transmission and 13% at Power Distribution. Orders grew more slowly year-over-year, primarily due to a lower level of large orders than in the third quarter a year ago. One of the most notable major orders came in at Power Transmission, for grid access to the world’s largest off-shore wind farm, known as Greater Gabbard in the UK.

     The Renewable Energy and Oil & Gas Divisions both profited well in the world’s booming markets for energy production.

     Renewable Energy generated €72 million in profit with a substantial increase in profit margin year-over-year. The Division also reached new highs in revenue and orders, which climbed to €631 million and €2.122 billion, respectively. The latter figure includes an exceptionally large order for 218 wind turbines in the U.S., which will be placed in wind farms throughout the country. Renewable Energy also won an order for 140 turbines for the Greater Gabbard off-shore wind farm mentioned above, thus demonstrating the Energy Sector’s ability to provide integrated solutions for large-scale energy projects. The Division expects to slow order intake compared to the exceptionally high level of the current quarter, while ramping up capacity. In this regard, the Division announced plans to double output at its U.S. rotor blade factory.

     The Oil & Gas Division combines products and services for extraction, transport and refining with additional offerings including industrial turbines. The Division contributed third-quarter profit of €95 million and clearly improved its profit margin year-over-year. Oil & Gas completed the quarter with a strong book-to-bill ratio based on order intake of €1.550 billion

     The Fossil Power Generation Division delivered profit of €212 million on revenue of €2.096 billion in the third quarter, and contributed to both revenue and profit growth for the Energy Sector as a whole. Third-quarter revenue demonstrates the Division’s emphasis on balancing its business more evenly among products, services, and turnkey power plant solutions. The Division’s equity investment income was stable compared to the prior-year period.

Energy — First nine months of fiscal 2008

Sector		Nine months ended June 30,
										% Change								therein
(€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Profit			968				1,224				(21	)%
Profit margin			6.1	%			8.5	%
New orders			26,182				22,477				16	%			23	%			(7	)%			0	%
Revenue			15,828				14,337				10	%			15	%			(5	)%			0	%

New orders by Divisions		Nine months ended June 30,
										% Change								therein
(€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Fossil Power Generation			9,706				9,434				3	%			8	%			(5	)%			0	%
Renewable Energy			4,115				1,690				143	%			172	%			(29	)%			0	%
Oil & Gas			4,493				3,511				28	%			29	%			(3	)%			2	%
Power Transmission			5,505				5,504				0	%			5	%			(5	)%			0	%
Power Distribution			2,743				2,571				7	%			12	%			(5	)%			0	%

Revenue by Divisions		Nine months ended June 30,
										% Change								therein
(€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Fossil Power Generation			5,729				5,861				(2	)%			3	%			(5	)%			0	%
Renewable Energy			1,465				898				63	%			76	%			(13	)%			0	%
Oil & Gas			2,838				2,345				21	%			22	%			(4	)%			3	%
Power Transmission			3,901				3,472				12	%			17	%			(5	)%			0	%
Power Distribution			2,207				1,979				12	%			16	%			(4	)%			0	%

		Division Profit												Division Profit Margin
		Nine months ended June 30,												Nine months ended June 30,
(€ in millions)		2008				2007				% Change				2008				2007
Fossil Power Generation			(91	)			576				—				(1.6	)%			9.8	%
Renewable Energy			159				84				89	%			10.9	%			9.4	%
Oil & Gas			239				139				72	%			8.4	%			5.9	%
Power Transmission			416				227				83	%			10.7	%			6.5	%
Power Distribution			243				197				23	%			11.0	%			10.0	%

     For the first nine months of fiscal 2008, profit at the Energy Sector was €968 million, a 21% decline compared to €1.224 billion in the previous year period. Division profit rose sharply at Renewable Energy, Oil & Gas, Power Transmission and Power Distribution, driven by increased capacity utilization and higher profit margins compared to the prior-year period. In contrast, Fossil Power Generation recorded a loss of €91 million in the first three quarters, compared to profit of €576 million in the same period a year earlier. The change was due to the Division’s turnkey solutions business, where a review of major projects identified resource constraints leading to project delays, expiring supplier price agreements, and significantly higher commodity prices. Based on the review, the Fossil Power Generation Division recorded charges of €559 million in the turnkey business in the second quarter, following charges of more than €200 million in the first quarter of fiscal 2008. Equity investment income related to Areva NP showed a positive swing year-over-year, contributing €26 million to Energy Sector profit in the current nine months compared to a negative €8 million in the prior-year period. Equity investment income is expected to be more volatile in coming quarters.

     Revenue in the Energy Sector rose 10% for the first nine months of fiscal 2008, to €15.828 billion compared to €14.337 billion in the previous period. Orders climbed 16% above the prior-year period to €26.182 billion compared to €22.477 billion in the previous period. On an organic basis, revenue and orders for the nine-month period at the Energy Sector increased 15% and 23%, respectively, with all Divisions contributing. Topline expansion was particularly rapid at Renewable Energy, with revenue increasing 63% and orders more than doubling year-over-year. Oil & Gas benefited from strong market dynamics as well, showing high double-digit growth in both revenue and orders.

Healthcare — Third quarter of fiscal 2008

Sector		Third quarter
										% Change								therein
(€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Profit			326				307				6	%
Profit margin			12.2	%			12.6	%
New orders			2,801				2,517				11	%			5	%			(9	)%			15	%
Revenue			2,677				2,431				10	%			3	%			(9	)%			16	%

New orders by Divisions		Third quarter
										% Change								therein
(€ in millions)		2008				2007				Actual				Adjusted				Currency(1)				Portfolio(2)
Imaging & IT			1,699				1,693				0	%			8	%			(8	)%			0	%
Workflow & Solutions			348				378				(8	)%			(2	)%			(6	)%			0	%
Diagnostics			831				502				66	%			2	%			(12	)%			76	%