Edgar Filing: SIEMENS AKTIENGESELLSCHAFT

Form 6-K

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

July 30, 2012

Commission File Number: 1-15174

Siemens Aktiengesellschaft

(Translation of registrant’s name into English)

Wittelsbacherplatz 2

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 x Form 40-F ¨

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 ¨ No x

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 ¨ No x

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 ¨ No x

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			2
Interim group management report			3
Condensed Interim Consolidated Financial Statements			27
Notes to Condensed Interim Consolidated Financial Statements			33
Review report			59
Quarterly summary			60
Financial calendar			61

INTRODUCTION

Siemens AG’s Interim Report for the Siemens Group complies with the applicable legal requirements of the German Securities Trading Act (Wertpapierhandelsgesetz—WpHG) regarding quarterly financial reports, and comprises Condensed Interim Consolidated Financial Statements and an Interim group management report in accordance with § 37x (3) WpHG. The Condensed 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 Condensed 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 for fiscal 2011, which includes a detailed analysis of our operations and activities.

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

Key figures Q3 and first nine months of fiscal 2012^1,2

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


Volume
													1^st nine months
Continuing operations	Q3 2012			Q3 2011			Actual			% Change Adjusted¹			2012			2011			Actual			% Change Adjusted³
New orders		17,770			22,937			(23	)%		(27	)%		55,458			64,425			(14	)%		(16	)%
Revenue		19,542			17,844			10	%		3	%		56,741			53,164			7	%		4	%

Earnings													1^st nine months
Total Sectors	Q3 2012			Q3 2011						% Change			2012			2011						% Change
Adjusted EBITDA		2,299			2,276			1%						6,735			7,432			(9)%
Total Sectors profit		1,817			1,144			59%						5,347			6,927			(23)%
in % of revenue (Total Sectors)		9.2	%		6.4	%								9.3	%		13.0	%
Continuing operations
Adjusted EBITDA		2,354			2,319			1%						7,118			8,018			(11)%
Income from continuing operations		1,229			763			61%						3,637			5,783			(37)%
Basic earnings per share (in €)⁴		1.37			0.83			65%						4.06			6.48			(37)%
Continuing and discontinued operations⁵
Net income		850			501			70%						3,322			5,090			(35)%
Basic earnings per share (in €)⁴		0.94			0.53			77%						3.70			5.70			(35)%

Capital efficiency
	Q3 2012						Q3 2011						1^st nine months 2012						1^st nine months 2011
Continuing operations
Return on capital employed (ROCE) (adjusted)		15.2%						11.3%						16.0%						26.0%
Continuing and discontinued operations⁵
Return on capital employed (ROCE) (adjusted)		9.8%						7.2%						13.4%						22.2%

Cash performance
	Q3 2012						Q3 2011						1^st nine months 2012						1^st nine months 2011
Continuing operations
Free cash flow		883						992						300						2,405
Cash conversion rate		0.72						1.30						0.08						0.42
Continuing and discontinued operations⁵
Free cash flow		950						861						169						1,727
Cash conversion rate		1.12						1.72						0.05						0.34

Liquidity and capital structure
	June 30, 2012												September 30, 2011
Cash and cash equivalents		8,963												12,468
Total equity (Shareholders of Siemens AG)		31,732												31,530
Net debt		10,974												4,995
Adjusted industrial net debt		4,448												(1,534)

Employees — in thousands
	June 30, 2012												September 30, 2011
	Continuing operations						Total⁷						Continuing operations						Total⁷
Employees		370						410						360						402
Germany		119						129						116						127
Outside Germany		251						281						244						275

New orders; Adjusted or organic growth rates of revenue and new orders; Total Sectors profit; ROCE (adjusted); Free cash flow and cash conversion rate; Adjusted EBITDA; Net debt and adjusted industrial net debt are or may be non-GAAP financial measures. Definitions of these supplemental financial measures, a discussion of the most directly comparable IFRS financial measures, information regarding the usefulness of Siemens’ supplemental financial measures, the limitations associated with these measures and reconciliations to the most comparable IFRS financial measures are available on our Investor Relations website under www.siemens.com/nonGAAP

2	April 1 – June 30, 2012 and October 1, 2011 – June 30, 2012.

3	Adjusted for portfolio and currency translation effects.

4	Basic earnings per share – attributable to shareholders of Siemens AG. For fiscal 2012 and 2011 weighted average shares outstanding (basic) (in thousands) for the third quarter amounted to 879,228 and 873,911 and for the first nine months to 877,466 and 872,755 shares, respectively.

5	Discontinued operations primarily consist of OSRAM, Siemens IT Solutions and Services, the former Communication activities and Siemens VDO Automotive.

6	Calculated by dividing adjusted industrial net debt as of June 30, 2012 and 2011 by annualized adjusted EBITDA.

7	Continuing and discontinued operations.

INTERIM GROUP MANAGEMENT REPORT

OVERVIEW OF FINANCIAL RESULTS FOR THE THIRD QUARTER OF FISCAL 2012

(THREE MONTHS ENDED JUNE 30, 2012)

•

Revenue for the third quarter rose 10% year-over-year, to €19.542 billion, with five percentage points coming from favorable currency translation effects.

•

Orders came in at €17.770 billion, 23% below the prior-year period, which included a €3.7 billion order for trains in Germany and a substantially higher volume from large orders in the Energy Sector. The book-to-bill ratio for the quarter was 0.91, and the order backlog was €100 billion.

•

Total Sectors profit was €1.817 billion, despite lower earnings contributions from Siemens’ industrial short-cycle businesses. The third quarter a year earlier included substantial profit impacts related to divesting Siemens’ stake in Areva NP S.A.S. (Areva NP) and changing the focus of particle therapy projects.

•

Income from continuing operations was €1.229 billion and corresponding basic EPS was €1.37.

•

Free cash flow from continuing operations for the quarter declined year-over-year, to €883 million, on lower cash flows in the Sectors.

Management’s perspective on third-quarter results. The deceleration of the world economy has increased in the past few months. We see growing reluctance among our customers regarding capital expenditures and stronger economic headwinds, especially in our industrial short-cycle businesses. Therefore our focus above all is on increasing our productivity and efficiency. Given our results for the first nine months, including substantially lower earnings than we expected in our industrial short-cycle businesses, it has become clearly more ambitious to reach the range of our mid-year outlook of €5.2 to €5.4 billion in income from continuing operations.

Currency tailwinds partly offset market challenges. The market environment was less favorable in the third quarter, particularly for Siemens’ industrial short-cycle businesses. Revenue rose 10%, while orders came in 23% lower than the prior-year period, which included a substantially higher volume from large orders. Excluding currency translation and portfolio effects, revenue rose 3% and orders declined 27%. The book-to-bill ratio for Siemens overall was 0.91, and the backlog (defined as the sum of the order backlogs of the Sectors) was €100 billion at the end of the quarter, including €2 billion in the current quarter from positive currency translation effects.

Higher revenue in all Sectors and regions. All Sectors reported revenue growth in the third quarter, benefiting from currency translation effects. Healthcare posted broad-based growth. Energy’s growth was supported by conversion from its strong order backlog. Infrastructure & Cities and Industry generated moderate increases. The Americas and Asia, Australia reporting regions saw double-digit revenue growth, and the reporting region comprising Europe, the Commonwealth of Independent States (C.I.S.), Africa and the Middle East showed a moderate increase. On a global basis, emerging markets, as these markets are defined by the International Monetary Fund, grew 8% year-over-year, and accounted for €6.329 billion, or 32%, of total revenue for the quarter.

LOGO

Substantially lower volume from large orders. Healthcare orders increased, including strong demand in the diagnostics business, while both Infrastructure & Cities and Energy saw orders fall due to lower volume from large orders compared to a year earlier. Order development in all Sectors benefited from currency tailwinds. The drop in large order volume year-over-year was most evident in Europe, C.I.S., Africa, Middle East and the Americas. Asia, Australia posted moderate growth. Globally, orders grew 5% in emerging markets and accounted for €6.708 billion, or 38%, of total orders for the quarter.

LOGO

Energy and Healthcare take Sector profit higher. Total Sectors Profit was €1.817 billion in the third quarter, including significantly increased research and development (R&D) and marketing, selling and general administrative (SG&A) expenses across the Sectors associated with focused innovation and growth initiatives. In addition, Siemens’ industrial short-cycle businesses delivered lower income year-over-year. In the same quarter a year earlier, Total Sectors profit of €1.144 billion was held back by a €682 million impact related to an adverse arbitration decision associated with Siemens’ decision to exit its nuclear power joint venture with Areva S.A. (Areva), and by €381 million in charges associated with changing the focus of particle therapy projects in Healthcare.

Energy led all Sectors with profit of €683 million, up from €214 million a year earlier which included the Areva NP impact mentioned above. Profit at Industry came in at €523 million, down from €708 million in the prior-year period due primarily to its short-cycle businesses. Both Sectors faced market challenges for certain businesses, including activities related to renewable energy. Profit at Healthcare rose to €396 million. In the prior-year period, Healthcare profit of €8 million included the particle therapy charges mentioned above. Profit at Infrastructure & Cities was €215 million, slightly above the prior-year level.

LOGO

Results improve outside the Sectors. Income from continuing operations increased to €1.229 billion from €763 million a year earlier, and corresponding basic EPS rose to €1.37 compared to €0.83. The difference was due mainly to higher Total Sectors profit. The contribution to income from continuing operations from outside the Sectors turned positive due primarily to improved results from Corporate Treasury activities.

Net income impacted by catch-up effect at OSRAM. Net income was €850 million in the current quarter, up from €501 million a year ago. Corresponding basic EPS increased to €0.94, up from €0.53 in the same period a year earlier. Within net income, discontinued operations posted a loss of €379 million compared to a loss of €262 million in the same quarter a year earlier, which included significant earnings impacts related to the divestment of Siemens IT Solutions and Services.

The current quarter includes a non-cash effect related to OSRAM, totaling a negative €443 million (pretax). This effect arises from the fact that Siemens no longer considers it highly probable to complete its original plan to dispose of OSRAM via an initial public offering (IPO) by the end of calendar year 2012, and must therefore recognize accumulated depreciation, amortization, impairments and equity pick-ups related to OSRAM which under IFRS were not recognized beginning with the announcement of the IPO plan in March 2011. The new plan for OSRAM includes a spin-off to Siemens shareholders and qualifies for discontinued operations because the spin-off is considered highly probable. Siemens still intends to retain a minority stake in OSRAM, in which it will remain a long-term anchor shareholder.

Due primarily to the non-cash effect mentioned above, OSRAM recorded a loss of €351 million in the third quarter, compared to income of €56 million in the prior-year period. Also influencing the loss were measures to reduce OSRAM’s production capacities for conventional lighting products. OSRAM reported a 12% revenue increase year-over-year, and 1% growth on a comparable basis.

LOGO

Lower free cash flow at Sector level. Free cash flow from continuing operations came in at €883 million, down from €992 million in the prior-year period. The decrease was due primarily to lower free cash flow at the Sector level. The largest factor was lower billings in excess of costs in Energy due in part to lower orders year-over-year. The decline in free cash flow at Sector level was partly offset by net positive effects outside Total Sectors, including lower income tax payments.

Free cash flow from discontinued operations was a positive €67 million, up from a negative €131 million in the prior-year period. The change year-over-year was due primarily to two factors. Cash outflows related to Siemens IT Solutions and Services were lower compared to the prior-year period, which included higher payments in connection with the establishing of Siemens IT Solutions and Services as a separate legal group. In addition, the current period included higher cash inflows related to OSRAM.

LOGO

ROCE rises on higher income from continuing operations. On a continuing basis, ROCE (adjusted) increased to 15.2% compared to 11.3% a year earlier. The difference was due to higher income from continuing operations, only partly offset by higher average capital employed. The impact from the Areva NP arbitration decision took six and a half percentage points from ROCE in the prior-year period.

Pension plan underfunding increases. The estimated underfunding of Siemens’ pension plans as of June 30, 2012 amounted to approximately €8.0 billion, compared to an underfunding of approximately €6.5 billion at the end of the second quarter. Siemens’ defined benefit obligation (DBO) increased in the third quarter due primarily to a decrease in the discount rate assumption as of June 30, 2012. Accrued service and interest costs also contributed to the increase in the DBO. The impact of these factors on pension funding was only slightly offset by a positive actual return on plan assets and employer contributions. As of September 30, 2011, pension plan underfunding amounted to €6.2 billion.

RESULTS OF SIEMENS FOR THE NINE MONTHS ENDED JUNE 30, 2012

Orders and revenue

In the first nine months of fiscal 2012, revenue increased to €56.741 billion, up 7% from the prior-year period, including increases in all Sectors and in all three reporting regions supported by Siemens’ strong order backlog. Orders decreased 14% year-over-year, due primarily to substantially lower volume from large orders compared to the prior-year period. This resulted in a book-to-bill ratio for Siemens of 0.98 for the first nine months. On an organic basis, orders decreased 16% and revenue came in 4% above the same period a year earlier.


	New orders (location of customer)
	Nine months ended June 30,				% Change						therein
	2012		2011		Actual			Adjusted⁽¹⁾			Currency			Portfolio
	(in millions of €)
Europe, C.I.S.⁽²⁾, Africa, Middle East		28,041		36,012		(22	)%		(23	)%		0	%		1	%
therein Germany		7,473		13,037		(43	)%		(43	)%		0	%		0	%
Americas		15,609		15,997		(2	)%		(6	)%		3	%		1	%
therein U.S.		11,317		11,566		(2	)%		(7	)%		4	%		1	%
Asia, Australia		11,808		12,416		(5	)%		(8	)%		3	%		0	%
therein China		4,501		4,749		(5	)%		(11	)%		7	%		0	%
therein India		1,387		2,617		(47	)%		(43	)%		(4	)%		0	%
Siemens		55,458		64,425		(14	)%		(16	)%		1	%		1	%

(1)	Excluding currency translation and portfolio effects.

(2)	Commonwealth of Independent States.

Orders related to external customers declined 14% and were mixed in the first nine months of fiscal 2012. Orders for Healthcare were up 6%, with most of its businesses contributing increases, and Industry showed a slight increase. Order intake declined in Energy and in Infrastructure & Cities due to substantially lower volumes from large orders compared to the prior-year period, which included a number of orders for large wind-farms in Energy and a €3.7 billion order for trains in Germany won by Infrastructure & Cities. Orders from emerging markets on a global basis declined 9%, less than orders overall, and accounted for €19.383 billion, or 35%, of total orders for the first nine months.

In the regions Europe, C.I.S., Africa, Middle East and Asia, Australia, nine-month orders declined year-over-year due mainly to Infrastructure & Cities and Energy, which had lower volumes from large orders compared to the prior-year period. The double-digit decline in Germany was due to the large train order in the prior-year period mentioned above, and the decline in India was due largely to a major contract win in the prior-year period.

As previously disclosed, Siemens has decided that, subject to certain limited exceptions, it will not enter into new contracts with customers in Iran and has issued group-wide policies establishing the details of its general decision. Under the original version of the policies, among other exceptions, which have been previously disclosed, products and services required to maintain the installed base (e.g. deliveries of spare parts, maintenance and assembly services) were permitted to be provided. However, in the beginning of calendar year 2012, Siemens resolved to amend the policies to provide that no new business with respect to products and services destined to maintain the installed base in Iran’s oil & gas sector may be entered into under any circumstances. In addition, even outside the oil & gas sector, products and services for the installed base in Iran may be provided only in strictly limited circumstances which can be demonstrated to satisfy humanitarian purposes or private purposes serving the common good (e.g. water supply and healthcare of the civilian population).


	Revenue (location of customer)
	Nine months ended June 30,				% Change						therein
	2012		2011		Actual			Adjusted⁽¹⁾			Currency			Portfolio
	(in millions of €)
Europe, C.I.S.⁽²⁾, Africa, Middle East		29,139		28,026		4	%		3	%		0	%		0	%
therein Germany		8,081		7,847		3	%		3	%		0	%		0	%
Americas		16,582		14,962		11	%		6	%		4	%		1	%
therein U.S.		12,303		10,665		15	%		8	%		6	%		1	%
Asia, Australia		11,019		10,177		8	%		5	%		4	%		0	%
therein China		4,475		4,503		(1	)%		(6	)%		7	%		(1	)%
therein India		1,769		1,636		8	%		14	%		(6	)%		0	%
Siemens		56,741		53,164		7	%		4	%		2	%		0	%

(1)	Excluding currency translation and portfolio effects.

(2)	Commonwealth of Independent States.

Revenue related to external customers rose 7% compared to the first nine months a year earlier, on growth in all Sectors. Revenue in Energy increased 12% year-over-year on conversion from its strong order backlog. Moderate revenue growth for Industry and clear revenue growth for Healthcare included increases across the respective Sector’s businesses. Revenue in the Infrastructure & Cities Sector also increased slightly. Emerging markets on a global basis grew faster than revenue overall, at 9% year-over-year, and accounted for €18.245 billion, or 32%, of total revenue for the first nine months.

Revenue in the Americas rose 11%, including contributions from all Sectors. Double-digit revenue growth in the U.S. was driven by a substantial increase in Energy. Revenue rose 8% in the Asia, Australia region. Double-digit increases in Energy and Healthcare more than offset declines at Infrastructure & Cities and Industry in the region.

Consolidated Statements of Income


	Nine months ended June 30,
	2012			2011			% Change
	(in millions of €)
Gross profit		16,201			16,349			(1	)%
as percentage of revenue		28.6	%		30.8	%

Gross profit for the nine months ended June 30, 2012, came within 1% of the prior-year level. On the Sector level, gross profit rose significantly in Healthcare and slightly in Industry and Infrastructure & Cities. Mainly due to project charges of €503 million at Power Transmission, gross profit fell significantly in Energy.


	Nine months ended June 30,
	2012			2011			% Change
	(in millions of €)
Research and development expenses		(3,135	)		(2,771	)		13	%
as percentage of revenue		5.5	%		5.2	%
Marketing, selling and general administrative expenses		(8,096	)		(7,498	)		8	%
as percentage of revenue		14.3	%		14.1	%
Other operating income		322			444			(27	)%
Other operating expense		(171	)		(320	)		(47	)%
Income (loss) from investments accounted for using the equity method, net		(391	)		172			n/a
Interest income		1,670			1,641			2	%
Interest expense		(1,298	)		(1,278	)		2	%
Other financial income, net		87			674			(87	)%

Research and development expenses were significantly higher year-over-year on increases in all sectors. Marketing, selling and general administrative expenses also increased clearly in all sectors, primarily associated with business expansion.

Other operating income for the first nine months was lower than a year ago, due mainly to lower income from the disposals of real estate, partly offset by higher income in connection with legal and regulatory matters. In the nine months ended June 30, 2011, other operating income included €64 million income related to a settlement of legal matters in connection with portfolio activities. Other operating expense was also lower than in the prior-year period, which included higher charges related to legal and regulatory matters. For additional information, see Notes 3 and 4 in Notes to Condensed Interim Consolidated Financial Statements within this Interim Report.

Income (loss) from investments accounted for using the equity method, net was a negative €391 million in the current nine-month period, compared to a positive €172 million in the comparable period a year earlier. This sharp swing was due mainly to our equity investment result related to Nokia Siemens Networks B.V. (NSN), which was a loss of €768 million, compared to a loss of €204 million in the prior-year period. The current nine months benefited from a gain on the sale of a stake in Bangalore International Airport Limited at Financial Services (SFS). The prior-year period included a gain of €91 million on the sale of our interest in Krauss-Maffei Wegmann GmbH & Co. KG (KMW) to Wegmann Group.

Interest income was slightly higher than in the prior-year nine-month period, as higher interest from lending activities more than offset a lower expected return on plan assets. Interest expense was also slightly higher than in the prior-year period, due in part to higher pension-related interest expense. For additional information, see Note 5 in Notes to Condensed Interim Consolidated Financial Statements within this Interim Report.

Other financial income, net was €87 million in the first nine months, compared to €674 million in the same period a year earlier. The current period benefited from a €87 million gain from the sale of Siemens’ 25% interest in OAO Power Machines in Russia. In addition, Siemens realized positive effects related to hedging activities that did not qualify for hedge accounting, partly offset by higher expenses for the accretion of provisions. In the first nine months a year earlier, Siemens recognized a gain of €1.520 billion on the sale of its interest in Areva NP, partly offset by the negative impact of €682 million related to an adverse arbitration decision associated with Siemens’ decision to exit its nuclear power joint venture with Areva. For additional information, see Note 5 in Notes to Condensed Interim Consolidated Financial Statements within this Interim Report.


	Nine months ended June 30,
	2012			2011			% Change
	(in millions of €)
Income from continuing operations before income taxes		5,189			7,413			(30	)%
Income taxes		(1,552	)		(1,630	)		(5	)%
as percentage of income from continuing operations before income taxes		30	%		22	%
Income from continuing operations		3,637			5,783			(37	)%
Income (loss) from discontinued operations, net of income taxes		(315	)		(693	)		(55	)%
Net income		3,322			5,090			(35	)%
Net income attributable to non-controlling interests		79			117			—
Net income attributable to shareholders of Siemens AG		3,244			4,973			(35	)%

Income from continuing operations before income taxes decreased year-over-year due to the factors mentioned above. The effective tax rate was 30% in the first nine months of fiscal 2012. For comparison, the rate of 22% in the prior-year period benefited from the mainly tax free Areva disposal gain. As a result, income from continuing operations was €3.637 billion in the current period, down from €5.783 billion in the same period a year earlier.

Income (loss) from discontinued operations in the first nine months of fiscal 2012 was a negative €315 million, compared to a negative €693 million in the same period a year earlier.

Discontinued operations primarily include OSRAM. The current period includes a non-cash effect related to OSRAM, totaling a negative €443 million (pretax). This effect arises from the fact that Siemens no longer considers it highly probable to complete its original plan to dispose of OSRAM via an initial public offering (IPO) by the end of calendar 2012, and must therefore recognize accumulated depreciation, amortization, impairments and equity pick-ups related to OSRAM which under IFRS were not recognized beginning with the announcement of the IPO plan in March 2011. The new plan for OSRAM includes a spin-off to Siemens shareholders and qualifies for discontinued operations because the spin-off is considered highly probable. Siemens still intends to retain a minority stake in OSRAM, in which it will remain a long-term anchor shareholder. Due primarily to the non-cash effect mentioned above, OSRAM recorded a loss of €208 million in the first nine months of fiscal 2012, compared to income of €255 million in the prior-year period. Also influencing the loss were measures to reduce OSRAM’s production capacities for conventional lighting products. Revenue for OSRAM in the first nine months of fiscal 2012 increased 9% year-over-year, benefiting from favorable currency translation effects.

In addition, discontinued operations include Siemens IT Solutions and Services, which was sold to Atos S.A. (AtoS) in the fourth quarter of fiscal 2011, and certain remaining items related to former activities that were disposed of in prior years. The current nine-month period includes pretax expenses of €142 million related to a settlement with the Greek State related to former Com activities. Results related to Siemens IT Solutions and Services differed substantially year-over-year. In the current period under review, income was a positive €30 million, compared to a loss of €820 million in the first nine months of fiscal 2011. For additional information, see Note 2 in Notes to Condensed Interim Consolidated Financial Statements within this Interim Report.

Net income for Siemens in the first nine months of fiscal 2012 declined to €3.322 billion from €5.090 billion in the same period a year earlier. Net income attributable to shareholders of Siemens AG was €3.244 billion, down from €4.973 billion in the same period a year earlier.

Portfolio activities

During the first nine months of fiscal 2012, Siemens acquired all of the shares of five entities constituting the Connectors & Measurements Division of Expro Holdings UK 3 Ltd. The acquired business engineers and manufactures subsea components such as cable connectors, sensors and measuring devices. With this acquisition Siemens aims at strategically expanding its portfolio in the market for subsea power grids. The aggregate consideration amounts to €469 million (including €8 million cash acquired). The acquired business will be integrated into the Energy Sector’s Oil & Gas Division.

Also in the first nine months of fiscal 2012, Siemens completed certain other portfolio transactions which are not significant individually, including the following:

To further expand its global gas turbine manufacturing network, Siemens launched a subsidiary, Siemens Gas Turbine Technologies Holding B.V. Siemens has a 65% stake in the subsidiary. As part of the transaction, Siemens completed the sale of its 25% interest in OAO Power Machines, Russia, held by the Energy Sector. Furthermore, Siemens completed the acquisitions of RuggedCom Inc., a provider of robust, industrial-quality Ethernet communication products and network solutions, at the Industry Sector’s Industry Automation Division, the acquisition of the NEM B.V. business, a specialist in heat recovery steam generators for combined-cycle (gas and steam) power plants at the Energy Sector’s Fossil Power Generation Division and of eMeter Corporation, a meter data management specialist at Infrastructure & Cities Sector’s Smart Grid Division.

For further information on acquisitions and dispositions, see Note 2 in Notes to Condensed Interim Consolidated Financial Statements within this Interim Report.

SEGMENT INFORMATION ANALYSIS FOR THE NINE MONTHS ENDED JUNE 30, 2012

Energy Sector


Sector	Nine months ended June 30,						% Change						therein
	2012			2011			Actual			Adjusted⁽¹⁾			Currency			Portfolio
	(in millions of €)
Profit		1,737			3,335			(48	)%
Profit margin		8.6	%		18.6	%
New orders		18,244			23,856			(24	)%		(27	)%		1	%		2	%
Revenue		20,089			17,954			12	%		9	%		2	%		1	%

(1)	Excluding currency translation and portfolio effects.

Energy reported a profit of €1.737 billion in the nine months ended June 30, 2012, driven primarily by Fossil Power Generation. Sector profit was held back by project charges totaling €503 million in the transmission business and higher R&D and SG&A expenses resulting mainly from Energy’s business expansion strategy. For comparison, profit of €3.335 billion in the first nine months of fiscal 2011 benefited from the Areva NP gain of €1.520 billion mentioned earlier, only partly offset by the €682 million profit impact related to the arbitration decision discussed earlier and the Sector’s €60 million share of special employee remuneration costs. For further information, see “Reconciliation to Consolidated Financial Statements—Corporate items and pensions”.

Revenue rose on conversion from the Sector’s strong order backlog in all three reporting regions, including a substantial increase in Asia, Australia. Orders came in 24% lower compared to the prior-year period, when the Sector recorded a substantially larger volume from major orders. This comparison effect was particularly notable in Europe, C.I.S., Africa, Middle East. Energy’s book-to-bill ratio was 0.91 and its order backlog was €56 billion at the end of the period.


Businesses	New orders
	Nine months ended June 30,				% Change						therein
	2012		2011		Actual			Adjusted⁽¹⁾			Currency			Portfolio
	(in millions of €)
Fossil Power Generation		7,751		10,138		(24	)%		(29	)%		1	%		4	%
Renewable Energy		2,680		4,455		(40	)%		(41	)%		1	%		0	%
Oil & Gas		3,778		4,106		(8	)%		(12	)%		1	%		3	%
Power Transmission		4,273		5,451		(22	)%		(21	)%		(1	)%		0	%

(1)	Excluding currency translation and portfolio effects.


Businesses	Revenue
	Nine months ended June 30,				% Change						therein
	2012		2011		Actual			Adjusted⁽¹⁾			Currency			Portfolio
	(in millions of €)
Fossil Power Generation		8,172		7,586		8	%		5	%		2	%		1	%
Renewable Energy		3,747		2,774		35	%		29	%		6	%		0	%
Oil & Gas		3,880		3,368		15	%		11	%		1	%		3	%
Power Transmission		4,576		4,449		3	%		2	%		1	%		0	%

(1)	Excluding currency translation and portfolio effects.


Businesses	Profit								Profit margin

	Nine months ended June 30,								Nine months ended June 30,
	2012			2011		% Change			2012			2011
	(in millions of €)
Fossil Power Generation		1,557			2,429		(36	)%		19.1	%		32.0	%
Renewable Energy		100			152		(34	)%		2.7	%		5.5	%
Oil & Gas		329			338		(3	)%		8.5	%		10.0	%
Power Transmission		(262	)		411		—			(5.7	)%		9.2	%

Fossil Power Generation generated profit of €1.557 billion on a continued high profit contribution from the service and products businesses, while results from the solutions business were significantly lower due to a less favorable project mix compared to a year earlier. Profit also benefited from an €87 million gain from the sale of the 25% interest in OAO Power Machines, as part of the ongoing reorganization and expansion of the Division’s manufacturing network and service activities in Russia. For comparison, profit in the same period a year earlier included the €1.520 billion Areva NP gain and a more favorable project mix in the component business, partly offset by the €682 million Areva arbitration impact. Division profit was burdened by project charges related to the Olkiluoto project in Finland in both the current and prior periods, amounting to €46 million and €87 million, respectively. Revenue rose 8%, with growth in Asia, Australia and the Americas partly offset by a decline in Europe, C.I.S., Africa, Middle East. Due to the lower volume from major orders mentioned above, orders were down 24%, on declines in all three reporting regions, with the largest decrease coming from Europe, C.I.S., Africa, Middle East.

The Renewable Energy business includes Siemens’ Wind Power and Solar & Hydro Divisions. Higher expenses for R&D, marketing and selling associated with expansion, a less favorable revenue mix, and increased pricing pressure resulted in lower profit year-over-year. In addition, earnings in the wind power business came in lower due to a €32 million provision related to a wind turbine component from an external supplier and a charge of €20 million related to capacity adjustment. Due to ongoing structural challenges, the solar business continued to report negative results. Revenue rose 35% year-over-year, due to conversion of large orders into current business mainly in Europe, C.I.S., Africa, Middle East, and, to a lesser degree, in the Americas. The market environment for the solar business remains challenging. New orders were down 40% due primarily to a lower volume from large orders in Germany. Challenging market conditions in Renewable Energy, including pricing pressure, are expected to continue in coming quarters.

Profit at Oil & Gas in the first nine months of the year was down moderately from the prior-year period due primarily to recognition of a valuation allowance on receivables. Revenue increased due primarily to growth in Asia, Australia. In contrast, orders decreased substantially in Asia, Australia, taking orders lower for the Division overall.

Power Transmission reported a loss of €262 million for the first nine months of fiscal 2012. The major factor was €503 million in project charges related primarily to technically complex grid connections to offshore wind-farms in Germany. These charges were due to project delays resulting from a complex regulatory environment and the projects’ complex marine environment, which required revised estimates of resources and personnel. Earnings were also held back by a less favorable revenue mix, due in part to low-margin orders booked during prior periods with significant pricing pressure. These factors were only partly offset by the release of a provision of €64 million related to a successful project completion. For comparison, prior-year period profit included charges of €53 million, including for staff reduction measures, associated with optimizing the Division’s global manufacturing footprint. Order intake decreased 22% compared to the prior-year period, which included a higher volume from large orders and a sharp drop in orders in the solutions business due in part to more selective order intake. All three reporting regions saw lower orders. The Division expects continuing challenges in coming quarters, including the technically complex grid-connection projects mentioned above and structural issues in certain businesses.

Healthcare Sector


Sector	Nine months ended June 30,						% Change						therein
	2012			2011			Actual			Adjusted⁽¹⁾			Currency			Portfolio
	(in millions of €)
Profit		1,184			840			41	%
Profit margin		12.0	%		9.2	%
New orders		9,846			9,304			6	%		2	%		3	%		0	%
Revenue		9,857			9,110			8	%		4	%		3	%		0	%

(1)	Excluding currency translation and portfolio effects.

For the first nine months of fiscal 2012, profit in the Healthcare Sector was influenced by a two-year global initiative, “Agenda 2013,” aimed at improving the Sector’s competitive position and expanding its capacity for innovation. The Sector took €144 million in charges related to this initiative in the first nine months and expects additional charges in coming quarters. This effect was partly offset by a net gain of €34 million from the successful pursuit of a patent infringement claim. Profit development in the current period also included higher expenses for R&D and SG&A. For comparison, Healthcare profit in the first nine months a year earlier was held back by negative impacts of €32 million in the first quarter and €381 million in the third quarter, including approximately €100 million for the negative revenue effect, related to shifting the focus of certain particle therapy projects primarily to research. Profit was also held back by the Sector’s €43 million share of the special employee remuneration mentioned earlier and a reserve of €19 million related to a customer loan and receivables in the audiology business.

In connection with the “Agenda 2013” initiative, Diagnostics took €66 million in charges in the first nine months related to improving its cost position. As a result, profit came in at €227 million compared to €238 million in the first nine months a year earlier when profit was impacted by an increase in valuation allowances for receivables triggered by a debt rating downgrade related to Greece. Purchase price allocation (PPA) effects related to past acquisitions at Diagnostics were €129 million in the first nine months. A year earlier, Diagnostics recorded €127 million in PPA effects.

Year-to-date revenue for Healthcare increased 8% compared to the prior-year period on broad-based growth across its businesses. Revenue in the first nine months a year earlier included the negative revenue effect of approximately €100 million related to particle therapy projects mentioned above. Orders came in 6% higher, with most businesses contributing increases. On a geographic basis, Asia, Australia and the Americas drove revenue and order growth, due to increases in China and the U.S. The book-to-bill ratio was 1.00, and Healthcare’s order backlog was €7 billion at the end of the first nine months.

The Sector’s Diagnostics business contributed to overall growth, with revenue and orders reaching €2.914 billion from €2.731 billion and €2.748 billion, respectively, in the prior-year period. Diagnostics showed the same development as the Sector with regard to the regions.

Industry Sector


Sector	Nine months ended June 30,						% Change						therein
	2012			2011			Actual			Adjusted⁽¹⁾			Currency			Portfolio
	(in millions of €)
Profit		1,740			1,980			(12	)%
Profit margin		11.7	%		14.1	%
New orders		15,161			15,223			0	%		(2	)%		2	%		0	%
Revenue		14,874			14,074			6	%		4	%		2	%		0	%

(1)	Excluding currency translation and portfolio effects.

While Industry operated in a robust business environment in the first two quarters of the current fiscal year, the market environment for its short-cycle businesses turned less favorable during the third quarter. This change was particularly evident in Germany and China, two of the Sector’s largest national markets by revenue. Furthermore, the contribution from the Sector’s renewable energy offerings was held back by ongoing market challenges. Industry invested in focused innovation and growth opportunities, which entailed higher expenses for R&D, marketing and selling. Due mainly to the combination of these factors, Sector profit declined to €1.740 billion from €1.980 billion in the prior-year period. For comparison, nine-month profit a year earlier for Industry was held back by the Sector’s €75 million share of the special employee remuneration costs mentioned above.

Revenue for the Sector grew 6% year-over-year on broad-based increases across its businesses. Nine-month orders were nearly level year-over-year. On a comparable basis, excluding currency translation and portfolio effects, orders declined slightly for the Sector on a nine-month basis but more rapidly in the Sector’s short-cycle businesses during the last months of the current period. On a regional basis, both revenue and orders were higher in the regions Americas and Europe, C.I.S., Africa, Middle East, while they declined in the region Asia, Australia. The Sector’s book-to-bill ratio in the current period was 1.02 and its order backlog was €12 billion at the end of the first nine months of fiscal 2012.


Businesses	New orders
	Nine months ended June 30,				% Change						therein
	2012		2011		Actual			Adjusted⁽¹⁾			Currency			Portfolio
	(in millions of €)
Industry Automation		7,160		6,746		6	%		4	%		2	%		0	%
Drive Technologies		7,071		7,588		(7	)%		(8	)%		2	%		0	%

(1)	Excluding currency translation and portfolio effects.


Businesses	Revenue
	Nine months ended June 30,				% Change						therein
	2012		2011		Actual			Adjusted⁽¹⁾			Currency			Portfolio
	(in millions of €)
Industry Automation		6,915		6,487		7	%		4	%		2	%		0	%
Drive Technologies		7,029		6,658		6	%		4	%		2	%		0	%

(1)	Excluding currency translation and portfolio effects.


Businesses	Profit							Profit margin

	Nine months ended June 30,							Nine months ended June 30,
	2012		2011		% Change			2012			2011
	(in millions of €)
Industry Automation		931		1,003		(7	)%		13.5	%		15.5	%
Drive Technologies		684		825		(17	)%		9.7	%		12.4	%

Profit at Industry Automation declined to €931 million year-over-year due mainly to a less favorable business mix as well as higher R&D and SG&A expenses compared to the prior-year period.

In the first nine months, both revenue and orders increased year-over-year on growth in all three reporting regions. The Division’s revenue and order growth in the region Americas benefited strongly from currency translation effects, and the region Asia, Australia saw flat revenue and a decline in orders excluding favorable currency translation effects. PPA effects related to the fiscal 2007 acquisition of UGS Corp. were €110 million in the current period and €103 million in the same period a year earlier.

Drive Technologies posted a significant decline in profit year-over-year. Focused innovation and growth initiatives entailed higher spending for R&D, marketing and selling activities year-over-year, and the contribution from the Division’s renewable energy offerings was held back by ongoing market challenges. On a regional basis, revenue and orders increased in the regions Americas and Europe, C.I.S., Africa, Middle East. While revenue growth was only partly offset by a decline in the region Asia, Australia, a double-digit decline in orders in this region resulted in a decline in orders for the Division overall.

Infrastructure & Cities Sector


Sector	Nine months ended June 30,						% Change						therein
	2012			2011			Actual			Adjusted⁽¹⁾			Currency			Portfolio
	(in millions of €)
Profit		686			772			(11	)%
Profit margin		5.5	%		6.3	%
New orders		12,760			16,707			(24	)%		(25	)%		1	%		0	%
Revenue		12,582			12,231			3	%		1	%		2	%		0	%

(1)	Excluding currency translation and portfolio effects.

Profit at Infrastructure & Cities for the first nine months of fiscal 2012 declined year-over-year, due mainly to higher R&D and SG&A expenses associated with focused growth initiatives and a charge of €69 million at a rolling stock project in Germany recorded in the first quarter of the current period. The profit decline was only partly offset by a positive €37 million contribution from the Sector’s investment in AtoS in the current nine months. For comparison, profit in the prior-year period included a €63 million share of the special employee remuneration mentioned earlier. Revenue grew moderately year-over-year, as higher revenue in the regions Americas and Europe, C.I.S., Africa, Middle East more than offset a decline in Asia, Australia. Orders came in substantially lower year-over-year, despite increases at the Power Grid Solutions & Products business and the Building Technologies Division. The reason for the decline overall was a sharply higher volume from major orders at Transportation & Logistics in the prior-year period, including a €3.7 billion train order in Germany. The Sector’s book-to-bill ratio was 1.01 in the current period and its order backlog at the end of the quarter was €25 billion.


Businesses	New orders
	Nine months ended June 30,				% Change						therein
	2012		2011		Actual			Adjusted⁽¹⁾			Currency			Portfolio
	(in millions of €)
Transportation & Logistics		4,155		8,470		(51	)%		(52	)%		1	%		0	%
Power Grid Solutions & Products		4,613		4,298		7	%		6	%		1	%		0	%
Building Technologies		4,228		4,083		4	%		1	%		2	%		0	%

(1)	Excluding currency translation and portfolio effects.


Businesses	Revenue
	Nine months ended June 30,				% Change						therein
	2012		2011		Actual			Adjusted⁽¹⁾			Currency			Portfolio
	(in millions of €)
Transportation & Logistics		4,264		4,398		(3	)%		(5	)%		2	%		0	%
Power Grid Solutions & Products		4,284		3,991		7	%		6	%		1	%		0	%
Building Technologies		4,221		3,970		6	%		3	%		3	%		0	%

(1)	Excluding currency translation and portfolio effects.


Businesses	Profit							Profit margin

	Nine months ended June 30,							Nine months ended June 30,
	2012		2011		% Change			2012			2011
	(in millions of €)
Transportation & Logistics		163		266		(39	)%		3.8	%		6.1	%
Power Grid Solutions & Products		258		264		(2	)%		6.0	%		6.6	%
Building Technologies		226		239		(6	)%		5.3	%		6.0	%

The Transportation & Logistics business, which includes Siemens’ Rail Systems Division and its Mobility and Logistics Division, posted a substantially lower profit year-over-year. The primary factor was a charge of €69 million related to delays in fulfilling a rolling stock order in Germany mentioned above. In addition, the revenue mix was less favorable due to lower margins associated with large, long-term contracts from prior periods, which are now being converted to current business. Revenue for the first nine months declined year-over-year including a reduction of €45 million related to the delays for the rolling stock order in Germany in the current period. Order intake came down sharply year-over-year, as the prior-year period included a significantly higher volume from large orders, including the large order for trains in Germany mentioned above and a major order for high-speed trains in the U.K.

The Power Grid Solutions & Products business includes Siemens’ Low and Medium Voltage Division and its Smart Grid Division. Profit for the first nine months declined slightly year-over-year due to a less favorable business mix and higher expenses for smart grid growth initiatives. Revenue and orders clearly increased compared to the prior-year period. While revenue growth in the Americas and Asia, Australia was partly offset by a decline in Europe, C.I.S., Africa, Middle East, all three reporting regions increased their orders year-over-year.

Profit at Building Technologies declined due mainly to higher R&D and SG&A expenses partially associated with growth initiatives. The Division’s energy efficiency solutions contributed strongly to revenue and order growth compared to the prior-year period. On a regional basis, both revenue and orders grew in all three reporting regions.

Equity Investments

Equity Investments recorded a loss of €593 million, compared to a profit of €22 million in the first nine months a year earlier. That prior-year period benefited from a gain of €91 million from the sale of Siemens’ 49% stake in KMW. The loss in the current period was due mainly to the equity investment result related to Siemens’ share in NSN, which was a negative €768 million compared to a

negative €204 million in the prior-year period. NSN previously announced a global restructuring program aimed at maintaining its long-term competitiveness and improving profitability. NSN reported to Siemens that it booked restructuring charges and associated items totaling €985 million in the current period, compared to charges of €125 million in the same period a year earlier. Due to the nature of the restructuring program as well as prevailing uncertainty in macroeconomic conditions, the amount and timing of improvements in profitability is uncertain. Therefore, results from Equity Investments are expected to be volatile in coming quarters.

Financial Services (SFS)


	Nine months ended June 30,
	2012		2011		% Change
	(in millions of €)
Profit		379		305		24	%

	June 30, 2012		September 30, 2011
Total assets		16,430		14,602		13	%

As previously announced, effective with the beginning of fiscal 2012, SFS realigned its resources and expertise in the capital business into two global business models: Project and Structured Finance as well as Commercial Finance.

In the first nine months of fiscal 2012, SFS recorded a higher profit (defined as income before income taxes) year-over-year. While both interest result and operating expenses associated with SFS’ growth strategy increased year-over-year, the current period was primarily affected by a €78 million gain on the sale of a stake in Bangalore International Airport Limited, a public-private partnership, reducing SFS’ equity participation from 40% to 26%. This gain was partly offset by higher credit hits. Total assets increased significantly, including positive currency translation effects, as SFS took advantage of a favorable environment to book new business, primarily in the first quarter of fiscal 2012. The resulting growth in new business reduced Siemens’ liquidity.

Reconciliation to Consolidated Financial Statements

Reconciliation to Consolidated Financial Statements includes Centrally managed portfolio activities, Siemens Real Estate and various categories of items which are not allocated to the Sectors and to SFS because Management has determined that such items are not indicative of their respective performance.

Centrally managed portfolio activities

Centrally managed portfolio activities reported a loss of €5 million in the first nine months of fiscal 2012, compared to a loss of €17 million in the same period a year earlier.

Siemens Real Estate

Income before income taxes at Siemens Real Estate was €27 million in the first nine months of fiscal 2012, compared to €148 million in the same period a year earlier. This decrease is mainly attributable to significantly lower income related to the disposal of real estate.

Corporate items and pensions

Corporate items and pensions totaled a negative €5 million in the first nine months of fiscal 2012 compared to a positive €141 million in the same period a year earlier.

The difference was due mainly to centrally carried pension expense, which totaled a negative €33 million in the first nine months of fiscal 2012, compared to a positive €57 million in the prior-year period. The change is due primarily to a negative effect resulting from a lower expected return on plan assets and higher interest costs.

Corporate items were a positive €28 million compared to a positive €84 million in the first nine months of fiscal 2011. The current period benefited from positive effects related to legal and regulatory matters, compared to net expenses related to such matters in the prior-year period. In addition, the current reporting period includes an amount of €80 million related to reimbursements to AtoS. The prior-year period benefited from management’s allocation of €267 million of personnel-related costs related to special employee remuneration, which had been accrued in Corporate items in fiscal 2010. Within this amount, €240 million was allocated to the Sectors.

Eliminations, Corporate Treasury and other reconciling items

Income before income taxes from Eliminations, Corporate Treasury and other reconciling items was a positive €39 million in the first nine months of fiscal 2012 compared to a negative €113 million in the same period a year earlier. The primary factor in the change year-over-year was improved results from Corporate Treasury activities due mainly to changes in the fair market value of interest rate derivatives for interest rate management. For comparison, the prior-year period included positive effects related to the divestment of financial assets.

Reconciliation to adjusted EBITDA (continuing operations)

The following table gives additional information on topics included in Profit and Income before income taxes and provides a reconciliation to adjusted EBITDA based on continuing operations.

For the nine months ended June 30, 2012 and 2011

(in millions of €)


	Profit⁽¹⁾						Income (loss) from investments accounted for using the equity method, net⁽²⁾						Financial income (expense), net⁽³⁾						Adjusted EBIT⁽⁴⁾						Amortization⁽⁵⁾				Depreciation and impairments of property, plant and equipment and goodwill⁽⁶⁾						Adjusted EBITDA						Adjusted EBITDA margin
	2012			2011			2012			2011			2012			2011			2012			2011			2012		2011		2012			2011			2012			2011			2012			2011
Sectors
Energy Sector		1,737			3,335			43			37			66			828			1,628			2,470			67		51		281			250			1,977			2,771			9.8	%		15.4	%
therein: Fossil Power Generation		1,557			2,429			28			19			72			829			1,457			1,580			15		11		100			87			1,572			1,678
Renewable Energy		100			152			(6	)		(14	)		—			4			106			162			19		13		63			50			188			226
Oil & Gas		329			338			—			—			(3	)		(3	)		332			340			25		20		50			45			407			406
Power Transmission		(262	)		411			20			31			(3	)		(2	)		(280	)		382			7		7		65			63			(207	)		452
Healthcare Sector		1,184			840			5			5			(9	)		13			1,188			822			293		241		259			244			1,740			1,307			17.7	%		14.3	%
therein: Diagnostics		227			238			—			—			4			5			223			233			181		142		167			164			571			538
Industry Sector		1,740			1,980			9			14			(10	)		(3	)		1,742			1,970			199		188		232			222			2,173			2,380			14.6	%		16.9	%
therein: Industry Automation		931			1,003			2			8			(4	)		(1	)		933			995			155		147		97			93			1,186			1,235
Drive Technologies		684			825			7			5			(6	)		(1	)		683			820			36		34		126			117			845			971
Infrastructure & Cities Sector		686			772			19			10			22			(6	)		645			768			82		87		118			120			845			974			6.7	%		8.0	%
therein: Transportation & Logistics		163			266			12			4			(11	)		(3	)		162			265			9		11		33			32			205			308
Power Grid Solutions & Products		258			264			7			5			(2	)		(2	)		253			261			29		32		50			51			333			343
Building Technologies		226			239			—			1			(2	)		(1	)		227			240			44		44		35			37			306			320
Total Sectors		5,347			6,927			76			66			69			831			5,202			6,029			642		567		890			835			6,735			7,432

Equity Investments		(593	)		22			(611	)		6			6			11			12			5			—		—		—			—			12			5
Financial Services (SFS)		379			305			145			63			288			212			(54	)		31			5		7		196			199			147			236
Reconciliation to Consolidated Financial Statements
Centrally managed portfolio activities		(5	)		(17	)		4			7			—			—			(9	)		(24	)		3		2		1			3			(4	)		(18	)
Siemens Real Estate (SRE)		27			148			—			—			(82	)		(60	)		109			207			1		1		243			195			352			404
Corporate items and pensions		(5	)		141			—			—			53			100			(58	)		41			11		9		37			35			(10	)		85
Eliminations, Corporate Treasury and other reconciling items		39			(113	)		(5	)		30			126			(57	)		(82	)		(87	)		—		—		(32	)		(39	)		(113	)		(125	)

Siemens		5,189			7,413			(391	)		172			460			1,037			5,120			6,204			662		587		1,336			1,227			7,118			8,018

(1)

Profit of the Sectors as well as of Equity Investments and Centrally managed portfolio activities is earnings before financing interest, certain pension costs and income taxes. Certain other items not considered performance indicative by Management may be excluded. Profit of SFS and SRE is Income before income taxes. Profit of Siemens is Income from continuing operations before income taxes. For a reconciliation of Income from continuing operations before income taxes to Net income see Consolidated Statements of Income.

(2)	Includes impairments and reversals of impairments of investments accounted for using the equity method.

(3)	Includes impairment of non-current available-for-sale financial assets. For Siemens, Financial income (expense), net comprises Interest income, Interest expense and Other financial income (expense), net as reported in the Consolidated Statements of Income.

(4)	Adjusted EBIT is Income from continuing operations before income taxes less Financial income (expense), net and Income (loss) from investments accounted for using the equity method, net.

(5)	Amortization and impairments, net of reversals, of intangible assets other than goodwill.

(6)	Depreciation and impairments of property, plant and equipment, net of reversals. Includes impairments of goodwill of €— million in the current period and €— million in the prior-year period, respectively.

LIQUIDITY, CAPITAL RESOURCES AND REQUIREMENTS

Cash flows—First nine months of fiscal 2012 compared to first nine months of fiscal 2011

The following discussion presents an analysis of our cash flows from operating, investing and financing activities for the first nine months of fiscal 2012 and 2011 for both continuing and discontinued operations. Discontinued operations include primarily OSRAM and Siemens IT Solutions and Services, which were classified as discontinued operations during the second quarter of fiscal 2011. Siemens IT Solutions and Services was sold to AtoS in the fourth quarter of fiscal 2011.

Cash flows

Continuing operations

Discontinued operations

Continuing and
discontinued operations

Nine months ended June 30,

2012

2011

2012

2011

2012

2011

(in millions of €)

Net cash provided by (used in):

Operating activities

1,748

3,707

(13

)

(309

)

1,735

3,398

Investing activities

(3,379

)

(354

)

(530

)

(865

)

(3,909

)

(1,219

)

therein: Additions to intangible assets and

property, plant and equipment

(1,448

)

(1,302

)

(118

)

(369

)

(1,566

)

(1,671

)

Free cash flow

A+B

300

2,405

(131

)

(678

)

169

1,727

Financing activities

(2,006

)

(4,356

)

543

1,174

(1,463

)

(3,182

)

Cash flows from operating activities—Continuing operations provided net cash of €1.748 billion in the first nine months of fiscal 2012, compared to net cash provided of €3.707 billion in the same period a year earlier. In the current period income from continuing operations was €3.637 billion. Therein included are amortization, depreciation and impairments of €1.998 billion. A build-up of operating net working capital (defined as inventories less advance payments received plus trade and other receivables minus trade payables and minus billings in excess of costs and estimated earnings on uncompleted contracts and related advances) reduced the cash inflows by €3.0 billion. The increase in operating net working capital is due mainly to a build-up in inventories primarily in the Energy Sector in part on conversion from its strong order backlog. The current period also included substantial cash outflows due to a decrease in liabilities related to personnel costs and of approximately €0.3 billion related to Healthcare’s particle therapy business. In the prior-year period income from continuing operations was €5.783 billion. Therein included are amortization, depreciation and impairments of €1.814 billion. Income from continuing operations also included the Areva NP disposal gain of €1.520 billion, partly offset by the negative impact of €682 million related to an adverse arbitration decision associated with Siemens’ decision to exit its nuclear power joint venture with Areva, which has been deducted in the Consolidated Statements of Cash Flow within the line item (Gains) losses on sales of investments, net. A build-up of operating net working capital in the prior-year period reduced cash inflows by €2.2 billion. The prior-year period also included substantial cash outflows due to a decrease of liabilities related to personnel costs, which were higher than in the current period.

Discontinued operations used net cash of €13 million in the first nine months of fiscal 2012, compared to net cash used of €309 million in the prior-year period. The decrease in cash outflows year-over-year is due mainly to lower cash outflows related to Siemens IT Solutions and Services, which a year earlier included higher payments in connection with the establishment of Siemens IT Solutions and Services as a separate legal group, including for carve-out activities and personnel-related matters.

Cash flows from investing activities—Net cash used in investing activities for continuing operations amounted to €3.379 billion in the first nine months of fiscal 2012 compared to net cash used of €354 million in the prior-year period. The increase in cash outflows from investing activities is due mainly to lower proceeds from sales of investments, intangibles and property, plant and equipment of €1.500 billion; to higher acquisitions, net of cash acquired, of €1.029 billion; and to the higher build-up in receivables from financing activities of €348 million relating to SFS’s asset growth strategy. Proceeds of €466 million in the current nine-month period from the sales of investments, intangibles and property, plant and equipment included the sale of our 25% interest in OAO Power Machines, held by the Energy Sector. In the nine-month period a year earlier, proceeds from sales of investments, intangibles and property, plant and equipment provided net cash of €1.966 billion. This total included proceeds from the sale of investments of €1.543 billion, mainly related to the sale of our Areva stake for €1.7 billion in the second quarter of fiscal 2011, subsequently reduced by €0.7 billion in the third quarter of fiscal 2011 due to the arbitration decision mentioned earlier, and the sale of our 49% minority stake in KMW. Cash inflows for the prior-year period also included higher proceeds from real estate disposals at

SRE. Acquisitions, net of cash acquired, increased to €1.272 billion from €243 million in the prior-year period, comprising several acquisitions of entities within the Sectors to optimize our business portfolio, including in the current period the acquisition of the Connectors and Measurements Division of Expro Holdings UK 3 Ltd. as mentioned earlier. The aggregate consideration of this acquisition, net of cash acquired, amounts to €461 million. In the current period, cash outflows for the purchase of investments of €217 million included the second installment payment in connection with our equity investment in A2SEA A/S, a supplier of installation services for the construction of offshore wind-farms. The equity investment is held by the Energy Sector. For comparison, purchase of investments of €345 million in the prior-year period included cash outflows relating to the solar thermal business and the first installment payment for our equity investment in A2SEA A/S.

Discontinued operations used net cash of €530 million in the first nine months of fiscal 2012, compared to net cash used of €865 million in the prior-year period. These lower cash outflows related primarily to OSRAM, which a year earlier included payments related to the acquisition of Siteco.

Free cash flow from continuing operations amounted to a positive €300 million in the first nine months of fiscal 2012, compared to a positive €2.405 billion a year earlier. The decrease was due primarily to cash flows from operating activities as discussed above. Additions to intangible assets and property, plant and equipment increased in the current nine months, mainly due to increased investments within the Sectors.

On a sequential basis, Free cash flow during the first nine months of fiscal 2012 and during fiscal 2011 was as follows:

LOGO

Cash flows from financing activities—Continuing operations used net cash of €2.006 billion in the first nine months of fiscal 2012, compared to net cash used of €4.356 billion in the same period a year earlier. The decrease in net cash outflows in the current period was due primarily to the proceeds from the issuance of long-term debt of €2.473 billion, including the issuance of US$3.0 billion bonds with warrant units and cash inflows from the change in short-term debt and other financing activities of €2.206 billion primarily including net cash inflows from the issuance of commercial paper. These cash inflows were partly offset by the repayment of long-term debt of €3.193 billion relating to the redemption of €1.55 billion in 5.25%-fixed-rate-instruments, €0.7 billion in floating rate assignable loans, US$0.5 billion in floating rate notes and US$0.75 billion in 5.5% notes. For comparison, the prior-year period included a payment of €1.0 billion related to the binding offer to purchase additional shares in order to increase our stake in our publicly listed Indian subsidiary Siemens Ltd. and higher cash outflows for financing discontinued operations. These cash outflows a year earlier were partly offset by inflows of €354 million from the change in short-term debt and other financing activities, due mainly to cash inflows related to the settlement of financial derivatives used to hedge currency exposures in our financing activities and €113 million proceeds from the issuance of long-term debt. Both periods included cash outflows for dividends, which were €2.629 billion (for fiscal 2011) in the current nine-month period compared to €2.356 billion (for fiscal 2010) in the prior-year period.

Capital resources and requirements

We have a US$9.0 billion (€7.1 billion) global multi-currency commercial paper program in place. As of June 30, 2012, we had US$2.5 billion (€2.0 billion) in commercial paper outstanding.

Under the Debt Issuance Program, we issued fixed rated instruments with an aggregate amount of €3.4 billion comprising three tranches in June 2008. In August 2008, we increased two tranches of the €3.4 billion instruments by €750 million. The first tranche of €1.55 billion, in 5.25%-fixed-rate-instruments, matured in December 2011 and was redeemed at face value.

In June 2008, we issued assignable loans. The loans totaling €1.1 billion were issued in four tranches. Two floating-rate tranches of €370 million, original maturity in June 2013, and €283.5 million, original maturity in June 2015, were called in August 2011 and were redeemed in December 2011 at face value.

In August 2006, we issued notes totaling US$5.0 billion in four tranches. US$750 million in 5.5% notes matured in February 2012 and were redeemed at face value.

In March 2006, we issued US$1.0 billion in notes in two tranches. The first tranche of US$500 million in floating rate notes matured in March 2012 and was redeemed at face value.

In February 2012, Siemens issued US$ bonds with warrant units in an aggregate principal amount of US$3.0 billion in two tranches. The bonds due in August 2017 have a volume of US$1.5 billion and a coupon of notional 1.05% per annum; the bonds due in August 2019 have a volume of US$1.5 billion and a coupon of notional 1.65% per annum. The exercise price was fixed at 137.5% of the reference price. On that basis, the exercise price amounts to €104.0018 per share. At issuance, one warrant will entitle its holder to receive 1,806.1496 Siemens AG shares. The warrants result in option rights relating to a total of about 21.7 million Siemens AG shares. The equivalent amount of these bonds outstanding as of June 30, 2012 was €2.4 billion.

In February 2012, Siemens also issued US$400 million in floating rate notes, maturing in February 2019. The equivalent amount outstanding as of June 30, 2012 was €0.3 billion.

In March 2012, a US$5.0 billion syndicated multi-currency revolving credit facility expired. In April 2012, the Company signed a €4.0 billion syndicated multi-currency revolving credit facility replacing the Company’s US$5.0 billion credit facility. The €4.0 billion credit facility has a tenor of five years with two one-year extension options.

Capital structure—A key consideration for us is maintenance of ready access to the capital markets through various debt products and preservation of our ability to repay and service our debt obligation over time.

The capital structure ratio is defined as the item Adjusted industrial net debt divided by the item Adjusted EBITDA (continuing operations). As of June 30, 2012 and September 30, 2011 the ratios were as follows:


	June 30, 2012			September 30, 2011
	(in millions of €)
Short-term debt and current maturities of long-term debt⁽¹⁾		5,236			3,660
Plus: Long-term debt⁽¹⁾		15,234			14,280
Less: Cash and cash equivalents		(8,963	)		(12,468	)
Less: Current available-for-sale financial assets		(532	)		(477	)

Net debt		10,974			4,995
Less: SFS debt		(13,644	)		(12,075	)
Plus: Pension plans and similar commitments		9,060			7,307
Plus: Credit guarantees		611			591
Less: 50% nominal amount hybrid bond⁽²⁾		(915	)		(883	)
Less: Fair value hedge accounting adjustment⁽³⁾		(1,638	)		(1,470	)

Adjusted industrial net debt		4,448			(1,534	)


Adjusted EBITDA (continuing operations)		7,118			10,596


Adjusted industrial net debt / adjusted EBITDA (continuing operations)⁽⁴⁾		0.47			(0.14	)

(1)	The item Short-term debt and current maturities of long-term debt as well as the item Long-term debt included in total fair value hedge accounting adjustments of €1,638 million as of June 30, 2012 and €1,470 million as of September 30, 2011.

(2)

The adjustment for our hybrid bond considers the calculation of this financial ratio applied by rating agencies to classify 50% of our hybrid bond as equity and 50% as debt. This assignment reflects the characteristics of our hybrid bond such as a long maturity date and subordination to all senior and debt obligations.

(3)

Debt is generally reported with a value representing approximately the amount to be repaid. However for debt designated in a hedging relationship (fair value hedges), this amount is adjusted by changes in market value mainly due to changes in interest rates. Accordingly we deduct these changes in market value in order to end up with the approximate amount of debt to be repaid. We believe this is the more meaningful figure for the calculation presented above. For further information on fair value hedges see D.6 Notes to Consolidated Financial Statements in our Annual Report for fiscal 2011.

(4)	In order to calculate this ratio, adjusted EBITDA (continuing operations) needs to be annualized.

The following discussion presents an analysis of changes in the item Adjusted industrial net debt in the first nine months of fiscal 2012.

Within the line item Adjusted industrial net debt, the item Short-term debt and current maturities of long-term debt increased by €1.576 billion compared to the end of the prior fiscal year, due mainly to the issuance of commercial paper of €2.0 billion and the reclassification of €2.0 billion in 4.125% instruments due in February 2013, partly offset by the redemption of €1.55 billion in 5.25% fixed-rate instruments, €0.7 billion in floating-rate assignable loans, US$0.5 billion in floating-rate notes and US$0.75 billion in 5.5% notes. Long-term debt increased by €954 million due mainly to the issuance of US$3.0 billion bonds with warrant units partly offset by the above-mentioned reclassification. Associated with SFS’s growth strategy, SFS debt increased by €1.569 billion compared to the end of the prior fiscal year, including currency translation effects. Pension plans and similar commitments increased by €1.753 billion compared to the end of the prior fiscal year, reflecting the increase in the underfunding of Siemens’ pension plans. For further information regarding the decrease in the item Cash and cash equivalents please see Cash flows above.

Credit ratings—On June 5, 2012 Moody’s Investor Service raised its long-term Siemens’ credit rating from “A1” to “Aa3.” The rating classification “Aa” is the second highest rating within Moody’s debt ratings category. The numerical modifier “3” indicates a ranking in the lower end of that rating category. At the same time Moody’s revised its outlook for our credit rating from “positive” to “stable” and affirmed our short-term debt rating at “P-1.” Moody’s announced that the rating action was prompted by the higher levels of profitability and cash flow leverage that the company has been able to achieve over the past few years, and Moody’s assessment that these levels are likely to be sustainable through economic cycles, including the current period of economic weakness in Europe.

We expect no significant impact on our funding costs as a consequence of the revised rating or outlook by Moody’s.

Funding of pension plans and similar commitments

Unless otherwise stated all numbers presented below refer only to continuing operations.

At June 30, 2012, the combined funded status of Siemens’ pension plans showed an underfunding of €8.0 billion, compared to an underfunding of €6.2 billion at September 30, 2011. A significant increase in Siemens’ defined benefit obligation (DBO) was only partly offset by an increase of the fair value of Siemens’ funded pension plan assets.

LOGO

The estimated DBO of Siemens’ pension plans, which considers future compensation and pension increases, amounted to €31.2 billion on June 30, 2012, €4.1 billion higher than the DBO of €27.1 billion on September 30, 2011. The increase is primarily due to a decrease in the discount rate assumption during the nine-month period ended June 30, 2012, a negative impact from currency translation effects and, to a minor extent, the net of accrued service and interest cost less benefits paid during the nine-month period ended June 30, 2012. The decrease in the discount rate assumption is to a notable extent due to the specific determination method for the discount rate for the euro-zone which is highly sensitive to changes in the composition of the underlying corporate bond index.

The fair value of Siemens’ funded pension plan assets as of June 30, 2012, was €23.2 billion compared to €21.0 billion on September 30, 2011. The actual return on plan assets for the first nine months of fiscal 2012 amounted to €2.3 billion, resulting from both fixed income and to a slightly lower extent from equity investments. For comparison the expected return booked for the first nine months of fiscal 2012 amounted to €978 million, which corresponds to a 6.3% annual return. In the first nine months of fiscal 2012, employer contributions amounted to €444 million compared to €983 million in the prior-year period (which included amounts related to Siemens IT Solutions and Services and to OSRAM). In addition to the actual return on plan assets and employer contributions, the increase in plan assets was due also to a positive influence from currency translation effects. The aforementioned positive effects were partly offset by benefits paid during the nine-months period ended June 30, 2012.

The combined funded status of Siemens’ predominantly unfunded other post-employment benefit plans amounted to an underfunding of €0.8 billion, both at the end of the first nine months of fiscal 2012 and as of September 30, 2011.

For more information on Siemens’ pension plans and similar commitments, see Note 9 in Notes to Condensed Interim Consolidated Financial Statements.

REPORT ON RISKS AND OPPORTUNITIES

Within the scope of its entrepreneurial activities and the variety of its operations, Siemens encounters numerous risks and opportunities which could negatively or positively affect business development. For the early recognition and successful management of relevant risks and opportunities we employ a number of coordinated risk management and control systems. Risk management facilitates the sustainable protection of our future corporate success and is an integral part of all our decisions and business processes.

In our Annual Report for fiscal 2011 we described certain risks which could have a material adverse effect on our financial condition, including effects on assets, liabilities and cash flows, and results of operations, certain opportunities as well as the design of our risk management system.

As previously disclosed, business with customers in Iran is subject to export control regulations, embargoes, sanctions or other forms of trade restrictions imposed by the U.S., the European Union and other countries or organizations. The regulatory limitations have recently been further tightened by Executive Order 13590 issued by President Obama targeting Iran’s petroleum and petrochemical sectors and by Council

Regulation (EU) No. 267/2012 of March 23, 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No. 961/2010. Siemens has adopted internal restrictive policies on the conduct of business with Iran, which we continually review and have tightened at the beginning of the calendar year 2012, as described in more detail in Results of Siemens. Under certain limited circumstances, however, we continue to conduct certain business activities and provide products and services to customers in Iran. We believe that such activities to date have not had a material adverse impact on our reputation and share value. Going forward, divestment or similar initiatives adopted or proposed in various jurisdictions with respect to Iran, as well as new or tightened export control regulations, sanctions, embargos or other forms of trade restrictions imposed on Iran may result in a further curtailment of our existing business in Iran or in a further adaptation of our policies. In addition, the termination of our activities in Iran may expose us to customer claims and other actions.

We have previously disclosed that our business, financial condition and results of operations may be adversely affected by cost overruns or additional payment obligations related to the management of our long-term, fixed price or turnkey projects. Since we operate globally and perform projects in various complex political and regulatory environments there is a risk that our project business may be impacted by relevant political and regulatory environments and potential political and regulatory changes that occur during the term of projects which in turn may impact our business, financial condition and results of operations.

During the first nine months of fiscal 2012 we identified no further significant risks and opportunities besides those presented in our Annual Report for fiscal 2011 and in the sections of this Interim Report entitled Overview of financial results for the third quarter of fiscal 2012, Segment information analysis, and Legal proceedings. Additional risks currently not known to us or that we currently consider immaterial could also impair our business operations. We do not expect to incur any risks that alone or in combination would appear to jeopardize the continuity of our business.

We refer also to Notes and forward-looking statements at the end of this Interim group management report.

LEGAL PROCEEDINGS

For information on legal proceedings, see Note 13 to Notes to Condensed Interim Consolidated Financial Statements.

OUTLOOK FOR FISCAL 2012

For fiscal 2012 we expect moderate organic revenue growth compared to fiscal 2011, and a book-to-bill around one. Given our results for the first nine months, including substantially lower earnings than we expected in our industrial short-cycle businesses, it has become clearly more ambitious to reach the range of our mid-year outlook of €5.2 to €5.4 billion in income from continuing operations.

This outlook excludes significant portfolio effects and impacts related to legal and regulatory matters in the fourth quarter.

NOTES AND FORWARD-LOOKING STATEMENTS

This document includes supplemental financial measures that are or may be non-GAAP financial measures. New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors profit; return on equity (after tax), or ROE (after tax); return on capital employed (adjusted), or ROCE (adjusted); Free cash flow, or FCF; cash conversion rate, or CCR; adjusted EBITDA; adjusted EBIT; adjusted EBITDA margins, earnings effects from purchase price allocation, or PPA effects; net debt and adjusted industrial net debt are or may be such non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation as alternatives to measures of Siemens’ financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures may calculate them differently. Definitions of these supplemental financial measures, a discussion of the most directly comparable IFRS financial measures, information regarding the usefulness of Siemens’ supplemental financial measures, the limitations associated with these measures and reconciliations to the most comparable IFRS financial measures are available on Siemens’ Investor Relations website at www.siemens.com/nonGAAP. For additional information, see supplemental financial measures and the related discussion in Siemens’ most recent annual report on Form 20-F, which can be found on our Investor Relations website or via the EDGAR system on the website of the United States Securities and Exchange Commission.

This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to stockholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect Siemens’ operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historical trends. These factors include in particular, but are not limited to, the matters described in Item 3: Risk factors of our most recent annual report on Form 20-F filed with the SEC, in the chapter “Risks” of our most recent annual report prepared in accordance with the German Commercial Code, and in the chapter “Report on risks and opportunities” of our most recent interim report.

Further information about risks and uncertainties affecting Siemens is included throughout our most recent annual, and interim reports as well as our most recent earnings release, which are available on the Siemens website, www.siemens.com, and throughout our most recent annual report on Form 20-F and in our other filings with the SEC, which are available on the Siemens website, www.siemens.com, and on the SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of Siemens may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

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

SIEMENS

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

For the three and nine months ended June 30, 2012 and 2011

(in millions of €, per share amounts in €)


			Three months ended June 30,						Nine months ended June 30,
	Note		2012			2011			2012			2011
Revenue.				19,542			17,844			56,741			53,164
Cost of goods sold and services rendered.				(13,995	)		(12,665	)		(40,540	)		(36,815	)

Gross profit				5,547			5,179			16,201			16,349
Research and development expenses.				(1,082	)		(940	)		(3,135	)		(2,771	)
Marketing, selling and general administrative expenses.				(2,846	)		(2,581	)		(8,096	)		(7,498	)
Other operating income.		3		98			106			322			444
Other operating expense.		4		(41	)		(34	)		(171	)		(320	)
Income (loss) from investments accounted for using the equity method, net				(26	)		(43	)		(391	)		172
Interest income		5		560			550			1,670			1,641
Interest expense		5		(433	)		(424	)		(1,298	)		(1,278	)
Other financial income (expense), net		5		68			(736	)		87			674

Income from continuing operations before income taxes				1,846			1,077			5,189			7,413
Income taxes				(617	)		(314	)		(1,552	)		(1,630	)

Income from continuing operations.				1,229			763			3,637			5,783
Loss from discontinued operations, net of income taxes.		2		(379	)		(262	)		(315	)		(693	)

Net income.				850			501			3,322			5,090

Attributable to:
Non-controlling interests.				27			39			79			117
Shareholders of Siemens AG.				823			462			3,244			4,973
Basic earnings per share		15
Income from continuing operations				1.37			0.83			4.06			6.48
Loss from discontinued operations				(0.43	)		(0.30	)		(0.36	)		(0.78	)

Net income				0.94			0.53			3.70			5.70

Diluted earnings per share		15
Income from continuing operations				1.35			0.82			4.02			6.41
Loss from discontinued operations.				(0.43	)		(0.30	)		(0.36	)		(0.78	)

Net income.				0.93			0.52			3.66			5.63


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) For the three and nine months ended June 30, 2012 and 2011 (in millions of €)

			Three months ended June 30,						Nine months ended June 30,
			2012			2011			2012			2011
Net income				850			501			3,322			5,090
Currency translation differences.				613			(101	)		1,062			(308	)
Available-for-sale financial assets				41			16			122			(15	)
Derivative financial instruments.				(146	)		(40	)		(76	)		64
Actuarial gains and losses on pension plans and similar commitments.				(1,200	)		(311	)		(1,413	)		799

Other comprehensive income, net of tax (1)				(692	)		(436	)		(305	)		540

Total comprehensive income				158			65			3,017			5,630

Attributable to:
Non-controlling interests.				42			31			95			91
Shareholders of Siemens AG.				115			34			2,922			5,539

⁽¹⁾	Includes income (expense) resulting from investments accounted for using the equity method of €(22) million and €(18) million, respectively, for the three months ended June 30, 2012 and 2011, and €2 million and €1 million for the nine months ended June 30, 2012 and 2011, respectively.

The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.

SIEMENS

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of June 30, 2012 (unaudited) and September 30, 2011

(in millions of €)


	Note		6/30/12			9/30/11
ASSETS
Current assets
Cash and cash equivalents				8,963			12,468
Available-for-sale financial assets				532			477
Trade and other receivables				16,052			14,847
Other current financial assets				3,258			2,899
Inventories				17,292			15,143
Income tax receivables				717			798
Other current assets				1,359			1,264
Assets classified as held for disposal		2		4,781			4,917

Total current assets				52,953			52,813

Goodwill		6		17,397			15,706
Other intangible assets		7		4,668			4,444
Property, plant and equipment				10,737			10,477
Investments accounted for using the equity method				4,330			4,966
Other financial assets				13,638			11,855
Deferred tax assets				3,739			3,206
Other assets				793			776

Total assets				108,256			104,243


LIABILITIES AND EQUITY
Current liabilities
Short-term debt and current maturities of long-term debt		8		5,236			3,660
Trade payables				7,655			7,677
Other current financial liabilities				1,813			2,247
Current provisions		10		4,530			5,168
Income tax payables				2,171			2,032
Other current liabilities				20,591			21,020
Liabilities associated with assets classified as held for disposal				1,925			1,756

Total current liabilities				43,920			43,560

Long-term debt		8		15,234			14,280
Pension plans and similar commitments		9		9,060			7,307
Deferred tax liabilities				539			595
Provisions		10		3,914			3,654
Other financial liabilities				1,223			824
Other liabilities				2,053			1,867

Total liabilities				75,944			72,087

Equity		11
Common stock, no par value ⁽¹⁾				2,743			2,743
Additional paid-in capital				6,133			6,011
Retained earnings				24,492			25,881
Other components of equity				1,023			(68	)
Treasury shares, at cost ⁽²⁾				(2,660	)		(3,037	)

Total equity attributable to shareholders of Siemens AG				31,732			31,530

Non-controlling interests				581			626

Total equity				32,313			32,156

Total liabilities and equity				108,256			104,243

⁽¹⁾	Authorized: 1,117,803,421 and 1,117,803,421 shares, respectively Issued: 914,203,421 and 914,203,421 shares, respectively.

⁽²⁾	34,990,322 and 39,952,074 shares, respectively.

The	accompanying Notes are an integral part of these Interim Consolidated Financial Statements.

SIEMENS

CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited)

For the nine months ended June 30, 2012 and 2011

(in millions of €)


	Nine months ended June 30,
	2012			2011
Cash flows from operating activities
Net income.		3,322			5,090
Adjustments to reconcile net income to cash provided by (used in) operating activities—continuing operations
(Income) loss from discontinued operations, net of income taxes.		315			693
Amortization, depreciation and impairments		1,998			1,814
Income taxes		1,552			1,630
Interest (income) expense, net		(373	)		(363	)
(Gains) losses on sales and disposals of businesses, intangibles and property, plant and equipment, net		(41	)		(176	)
(Gains) losses on sales of investments, net ⁽¹⁾		(198	)		(979	)
(Gains) losses on sales and impairments of current available-for-sale financial assets, net		1			(2	)
(Income) losses from investments ⁽¹⁾		486			(26	)
Other non-cash (income) expenses.		41			215
Change in assets and liabilities
(Increase) decrease in inventories		(1,569	)		(2,136	)
(Increase) decrease in trade and other receivables		(601	)		(274	)
Increase (decrease) in trade payables.		(306	)		(269	)
Change in other assets and liabilities		(2,318	)		(524	)
Additions to assets held for rental in operating leases		(264	)		(448	)
Income taxes paid		(1,133	)		(1,310	)
Dividends received.		191			209
Interest received		644			563

Net cash provided by (used in) operating activities—continuing operations		1,748			3,707
Net cash provided by (used in) operating activities—discontinued operations		(13	)		(309	)

Net cash provided by (used in) operating activities		1,735			3,398
Cash flows from investing activities
Additions to intangible assets and property, plant and equipment.		(1,448	)		(1,302	)
Acquisitions, net of cash acquired.		(1,272	)		(243	)
Purchases of investments ⁽¹⁾		(217	)		(345	)
Purchases of current available-for-sale financial assets		(135	)		(15	)
(Increase) decrease in receivables from financing activities.		(943	)		(595	)
Proceeds and (payments) from sales of investments, intangibles and property, plant and equipment ^(1).		466			1,966
Proceeds and (payments) from disposals of businesses.		79			167
Proceeds from sales of current available-for-sale financial assets.		92			13

Net cash provided by (used in) investing activities—continuing operations		(3,379	)		(354	)
Net cash provided by (used in) investing activities—discontinued operations		(530	)		(865	)

Net cash provided by (used in) investing activities		(3,909	)		(1,219	)
Cash flows from financing activities
Proceeds from re-issuance of treasury stock and proceeds (payments) relating to other transactions with owners.		243			(770	)
Proceeds from issuance of long-term debt.		2,473			113
Repayment of long-term debt (including current maturities of long-term debt).		(3,193	)		(37	)
Change in short-term debt and other financing activities.		2,206			354
Interest paid.		(407	)		(364	)
Dividends paid.		(2,629	)		(2,356	)
Dividends paid to non-controlling interest holders		(127	)		(144	)
Financing discontinued operations ⁽²⁾		(572	)		(1,152	)

Net cash provided by (used in) financing activities—continuing operations		(2,006	)		(4,356	)
Net cash provided by (used in) financing activities—discontinued operations		543			1,174

Net cash provided by (used in) financing activities		(1,463	)		(3,182	)
Effect of exchange rates on cash and cash equivalents.		121			(23	)
Net increase (decrease) in cash and cash equivalents.		(3,516	)		(1,026	)
Cash and cash equivalents at beginning of period		12,512			14,227

Cash and cash equivalents at end of period		8,996			13,201
Less: Cash and cash equivalents of assets classified as held for disposal and discontinued operations at end of period		32			195

Cash and cash equivalents at end of period (Consolidated Statements of Financial Position)		8,963			13,006

⁽¹⁾	Investments include equity instruments either classified as non-current available-for-sale financial assets, accounted for using the equity method or classified as held for disposal. Purchases of investments includes certain loans to investments accounted for using the equity method.

⁽²⁾	Discontinued operations are financed principally through Corporate Treasury. The item Financing discontinued operations includes these intercompany financing transactions.

The	accompanying Notes are an integral part of these Interim Consolidated Financial Statements.

SIEMENS

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited)

For the nine months ended June 30, 2012 and 2011

(in millions of €)


						Total comprehensive income
									Other components of equity
	Common stock		Additional paid-in capital			Retained earnings			Currency translation differences			Available- for-sale financial assets			Derivative financial instruments			Total			Treasury shares at cost			Total equity attributable to shareholders of Siemens AG			Non-controlling interests			Total equity
Balance at October 1, 2010.		2,743		5,986			22,998			(115	)		95			12			22,990			(3,373	)		28,346			750			29,096

Net income		—		—			4,973			—			—			—			4,973			—			4,973			117			5,090
Other comprehensive income, net of tax		—		—			799	(1)		(282	)		(15	)		64			566			—			566			(26	)		540	⁽²⁾
Dividends		—		—			(2,356	)		—			—			—			(2,356	)		—			(2,356	)		(163	)		(2,519	)
Share-based payment		—		(29	)		(13	)		—			—			—			(13	)		—			(42	)		—			(42	)
Re-issuance of treasury stock		—		28			—			—			—			—			—			318			346			—			346
Transactions with non-controlling interests ⁽³⁾		—		—			(834	)		(17	)		—			—			(851	)		—			(851	)		(122	)		(973	)
Other changes in equity.		—		—			10			—			—			—			10			—			10			(6	)		4

Balance at June 30, 2011		2,743		5,985			25,577			(414	)		80			76			25,319			(3,055	)		30,992			550			31,542


Balance at October 1, 2011		2,743		6,011			25,881			2			36			(106	)		25,813			(3,037	)		31,530			626			32,156

Net income		—		—			3,244			—			—			—			3,244			—			3,244			79			3,322
Other comprehensive income, net of tax		—		—			(1,413	)⁽¹⁾		1,045			122			(76	)		(321	)		—			(321	)		16			(305	)⁽²⁾
Dividends.		—		—			(2,629	)		—			—			—			(2,629	)		—			(2,629	)		(137	)		(2,766	)
Share-based payment		—		1			(128	)		—			—			—			(128	)		—			(127	)		—			(127	)
Re-issuance of treasury stock		—		(6	)		—			—			—			—			—			377			372			—			372
Transactions with non-controlling interests		—		—			(469	)		—			—			—			(469	)		—			(469	)		1			(468	)
Other changes in equity.		—		126			6			—			—			—			6			—			132			(5	)		127

Balance at June 30, 2012		2,743		6,133			24,492			1,046			158			(181	)		25,516			(2,660	)		31,732			581			32,313

⁽¹⁾	Retained earnings includes actuarial gains and losses on pension plans and similar commitments of €(1,413) million and €799 million, respectively, in the nine months ended June 30, 2012 and 2011.

⁽²⁾

In the nine months ended June 30, 2012 and 2011, Other comprehensive income, net of tax includes non-controlling interests of €— million and €— million relating to Actuarial gains and losses on pension plans and similar commitments, €17 million and €(26) million relating to Currency translation differences, €— million and €— million relating to Available-for-sale financial assets and €(1) million and €—million relating to Derivative financial instruments.

⁽³⁾	Includes the acquisition of additional subsidiary shares in Siemens Ltd., India.

The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.

SIEMENS

SEGMENT INFORMATION (continuing operations—unaudited)

As of and for the three months ended June 30, 2012 and 2011 and as of September 30, 2011

(in millions of €)


	*New orders⁽²⁾*						External revenue				Intersegment revenue						Total revenue						Profit⁽³⁾						Assets⁽⁴⁾						Free cash flow⁽⁵⁾						Additions to intangible assets and property, plant and equipment					Amortization, depreciation and impairments⁽⁶⁾
	*2012*			*2011*			2012		2011		2012			2011			2012			2011			2012			2011			6/30/12			9/30/11			2012			2011			2012		2011			2012			2011
Sectors⁽¹⁾
Energy		5,246			7,248			6,962		6,076		63			64			7,025			6,140			683			214			3,161			656			(259	)		346			116		150			124			97
Healthcare		3,316			3,016			3,329		2,848		15			10			3,343			2,858			396			8			12,047			11,264			786			574			89		78			170			160
Industry		5,116			5,139			4,691		4,518		411			438			5,102			4,957			523			708			7,366			6,001			660			609			109		109			153			136
Infrastructure & Cities		4,185			7,609			4,061		3,857		210			184			4,271			4,041			215			214			4,159			3,169			(71	)		24			68		60			69			71

Total Sectors		*17,863*			*23,012*			19,042		17,299		699			697			19,741			17,995			1,817			1,144			26,732			21,090			1,115			1,553			382		398			516			463
Equity Investments		—			—			—		—		—			—			—			—			(74	)		(85	)		2,647			3,382			98			117			—		—			—			—
Financial Services (SFS)		274			293			267		283		8			10			274			293			105			89			16,430			14,602			83			71			6		16			64			58
Reconciliation to Consolidated Financial Statements
Centrally managed portfolio activities		62			71			67		83		3			1			70			85			(11	)		(25	)		(387	)		(397	)		23			(35	)		1		1			2			1
Siemens Real Estate (SRE)		615			545			80		104		535			442			615			546			22			49			5,154			4,974			(33	)		(58	)		102		113			89			65
Corporate items and pensions		134			114			86		75		46			38			132			113			(35	)		(56	)		(10,729	)		(9,806	)		5			(255	)		24		13			17			15
Eliminations, Corporate Treasury and other reconciling items		(1,178	)		(1,097	)		—		—		(1,290	)		(1,188	)		(1,290	)		(1,188	)		22			(38	)		68,410			70,398			(408	)		(402	)		—		(1	)		(10	)		(13	)

Siemens		*17,770*			*22,937*			19,542		17,844		—			—			19,542			17,844			1,846			1,077			108,256			104,243			883			992			514		540			678			590

(1)	Commencing with fiscal 2012, Infrastructure & Cities Sector was implemented. Prior period information has been recast to conform to the fiscal 2012 presentation.

(2)	This supplementary information on New orders is provided on a voluntary basis. It is not part of the Interim Consolidated Financial Statements subject to the review opinion.

(3)

(4)	Assets of the Sectors as well as of Equity Investments and Centrally managed portfolio activities is defined as Total assets less income tax assets, less non-interest bearing liabilities other than tax liabilities. Assets of SFS and SRE is Total assets.

(5)

Free cash flow represents net cash provided by (used in) operating activities less additions to intangible assets and property, plant and equipment. Free cash flow of the Sectors, Equity Investments and Centrally managed portfolio activities primarily exclude income tax, financing interest and certain pension related payments and proceeds. Free cash flow of SFS, a financial services business, and of SRE includes related financing interest payments and proceeds; income tax payments and proceeds of SFS and SRE are excluded.

(6)	Amortization, depreciation and impairments contains amortization and impairments, net of reversals of impairments, of intangible assets other than goodwill as well as depreciation and impairments of property, plant and equipment, net of reversals of impairments.

SIEMENS

SEGMENT INFORMATION (continuing operations—unaudited)

As of and for the nine months ended June 30, 2012 and 2011 and as of September 30, 2011

(in millions of €)

New orders⁽²⁾

External
revenue

Intersegment
revenue

Total revenue

Profit⁽³⁾

Assets⁽⁴⁾

Free cash
flow⁽⁵⁾

Additions
to
intangible
assets and
property,
plant
and
equipment

Amortization,
depreciation
and
impairments⁽⁶⁾

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

6/30/2012

9/30/11

2012

2011

2012

2011

2012

2011

Sectors⁽¹⁾

Energy

18,244

23,856

19,917

17,768

171

186

20,089

17,954

1,737

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