Edgar Filing: SIEMENS AKTIENGESELLSCHAFT

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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

April 26, 2007

Commission File Number: 1-15174

Siemens Aktiengesellschaft

(Translation of registrant’s name into English)

Wittelsbacherplatz 2
D-80333 Munich
Federal Republic of Germany
(Address of principal executive offices)

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

Form 20-F þ Form 40-F o

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

Yes o No þ

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

Yes o No þ

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

Yes o No þ

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

TABLE OF CONTENTS


Key figures
Earnings Release
Segment Information (continuing operations — unaudited)
Consolidated Statements of Income (unaudited)
Consolidated Statements of Income and Expense Recognized in Equity (unaudited)
Consolidated Statements of Cash Flow (unaudited)
Consolidated Balance Sheets (unaudited)
Update on Compliance and AUB
SIGNATURES

Key figures ⁽¹⁾

Effective with the first quarter of fiscal 2007, Siemens prepares its primary financial reporting according to International Financial Reporting Standards (IFRS) on a retroactive basis.

2nd quarter ⁽²⁾

first six months ⁽³⁾

(in millions of €, except where otherwise stated)

2007

2006

2007

2006

Income from continuing operations

1,396

897

2,110

1,504

Income from discontinued operations, net of income taxes

(137

)

(63

)

358

Net income

1,259

923

2,047

1,862

attributable to:

Minority interest

112

103

Shareholders of Siemens AG

1,196

873

1,935

1,759

Earnings per share from continuing operations ⁽⁴⁾

1.50

0.95

2.26

1.60

(in euros)

Earnings per share from discontinued operations ⁽⁴⁾

(0.16

)

0.03

(0.09

)

0.38

(in euros)

Earnings per share ⁽⁴⁾

1.34

0.98

2.17

1.98

(in euros)

Net cash from operating and investing activities ⁽⁵⁾

(901

)

538

(2,061

)

(186

)

therein: Net cash provided by operating activities

3,582

1,246

3,881

1,732

Net cash used in investing activities

(4,483

)

(708

)

(5,942

)

(1,918

)

Group profit from Operations ⁽⁵⁾

1,964

1,314

3,595

2,391

New orders ⁽⁵⁾

23,469

21,529

48,051

45,196

Revenue ⁽⁵⁾

20,626

18,824

39,694

36,800

March 31, 2007

September 30, 2006

Continuing

operations

Total ⁽⁶⁾

operations

Total ⁽⁶⁾

Employees (in thousands)

436

487

424

475

Germany

144

162

143

161

International

292

325

281

314


(1)		Unaudited, focused on continuing operations. (Discontinued operations consist of carrier networks, enterprise networks and mobile devices activities).
(2)		January 1 — March 31, 2007 and 2006, respectively
(3)		October 1, 2006 and 2005 — March 31, 2007 and 2006, respectively.
(4)		Earnings per share — basic, attributable to shareholders of Siemens AG.
(5)		Continuing operations.
(6)		Continuing and discontinued operations.

Note: “Group profit from Operations” is reconciled to “Income before income taxes” of Operations under “Reconciliation to financial statements” on the table “Segment information.”

Earnings Release

Munich, April 26, 2007

Effective with the first quarter of fiscal 2007, Siemens prepares its primary financial reporting according to International Financial Reporting Standards (IFRS) on a retroactive basis.

Siemens in the second quarter 2007 (ended March 31, 2007)

	•		Siemens successfully concluded its Fit4More program by achieving the profitability, growth and portfolio goals planned for April 2007.

	•		All Groups reached or exceeded their target earnings margins.

	•		Group profit from Operations rose 49% year-over-year, to €1.964 billion.

	•		Income from continuing operations climbed 56%, to €1.396 billion.

	•		Net income rose 36%, to €1.259 billion.

	•		Revenue rose 10% to €20.626 billion, and orders increased 9% to €23.469 billion. Excluding currency translation and portfolio effects, revenue rose 13% and orders increased 11%.

	•		On a continuing basis, operating and investing activities used net cash of €901 million in the second quarter, including a €3.8 billion cash payment for the diagnostics division of Bayer AG. A year earlier, operating and investing activities provided net cash of €538 million.

“Our financial performance in the second quarter is the result of great teamwork in successfully executing our Fit4More program,” said Siemens CEO Klaus Kleinfeld. “We significantly strengthened our strongest businesses, better aligned the company to take full advantage of global demographic and urbanization trends, and reached or exceeded our margin targets at all Groups. Together these accomplishments are enabling us to outgrow the economy at a higher level of profitability.”

“Going forward, we believe we can do even better. So we are introducing a new program, ‘Fit for 2010,’ with ambitious targets for growth, capital efficiency, and cash conversion at the corporate level, and with higher margin ranges at a majority of our Groups. We look forward to maintaining the operating momentum we have built up in the first half of the fiscal year.”

In the second quarter of fiscal 2007, ended March 31, 2007, Siemens’ net income rose to €1.259 billion, an increase of 36% compared to €923 million in the second quarter a year earlier. Basic earnings per share rose to €1.34 from €0.98 in the prior-year quarter, and diluted earnings per share increased to €1.28 from €0.98 a year earlier. Income from continuing operations was €1.396 billion, an increase of 56% compared to €897 million in the same period a year earlier. Basic earnings per share on a continuing basis rose to €1.50 from €0.95 in the prior-year quarter, and diluted earnings per share increased to €1.44 from €0.95 a year earlier. Discontinued operations reduced net income by €137 million in the second quarter, due primarily to an impairment at the enterprise networks business formerly included in Communications (Com). A year earlier, discontinued operations contributed €26 million to net income in the second quarter.

The dominant driver of income growth was Group profit from Operations, which rose 49% year-over-year, to €1.964 billion. Every Group in Operations reached or exceeded its target Group profit margin in the second quarter and a majority delivered strong double-digit profit growth compared to the same period a year earlier. Automation and Drives (A&D) and Power Transmission and Distribution (PTD) hit new highs in quarterly Group profit on an absolute basis. Other leading earnings contributors included Medical Solutions (Med), Power Generation (PG), Siemens VDO Automotive (SV) and Osram. Improvement in Group profit from Operations year-over-year also included a positive result at Siemens Business Services (SBS), which posted a significant loss in the prior-year period primarily due to substantial severance charges.

Net income growth also benefited from the other two components of Siemens. Financing and Real Estate activities earned €179 million in income before income tax compared to €71 million in the second quarter a year earlier. Corporate Treasury activities contributed €31 million, compared to a negative €230 million a year ago. The difference relates primarily to a cash settlement option on a convertible bond, which resulted in a €257 million negative effect in the prior-year quarter.

In a favorable macroeconomic environment, Siemens’ strengthened business portfolio generated substantial volume growth compared to the prior-year quarter. Revenue increased 10% year-over-year, to €20.626 billion, and orders of €23.469 billion were up 9% compared to the prior-year quarter. Excluding currency translation and portfolio effects, second-quarter revenue rose 13% and orders climbed 11%. Europe excluding Germany was the primary driver of revenue growth, with a 16% increase. Germany expanded by 6%. Order growth was more balanced regionally, with double-digit increases in Europe, Asia-Pacific and the Americas. A&D, Med, PG and PTD all delivered strong revenue and order growth to go along with their margin strength and substantial contributions to Group profit.

On a continuing basis, operating and investing activities within Operations in the second quarter used €1.921 billion in cash compared to cash provided of €269 million in the same period a year earlier. The current period included an approximately €3.8 billion cash payment for the diagnostics division of Bayer AG. Within Financing and Real Estate and Corporate Treasury activities, net cash provided by operating and investing activities in the second quarter was €1.020 billion compared to €269 million in the prior-year quarter. The difference was due primarily to lower receivables at Siemens Financial Services (SFS), including substantial receivables related to telecommunications carrier activities. For Siemens on a continuing basis, operating and investing activities used net cash of €901 million compared to net cash provided of €538 million in the same period a year earlier.

As planned, Siemens brought its Fit4More strategic program to a successful close in the second quarter. In addition to reaching or exceeding target margins throughout Operations and at SFS, Siemens also achieved Fit4More’s April 2007 growth and portfolio goals. To deliver top-line growth at twice the rate of global expansion in gross domestic product (“2X global GDP”), Siemens continued to invest for organic growth while making major acquisitions at its largest and most profitable Groups. For example, A&D increased its capabilities in large drives, gears, and software, PG added wind power and other clean energy offerings, and Med acquired a world-class in vitro diagnostics business.

Fit4More further focused Siemens’ business portfolio goal by reorienting the Information and Communications (I&C) businesses and Logistics and Assembly Systems Group (L&A). Among the notable results is a telecommunications infrastructure joint venture with Nokia, called Nokia Siemens Networks (NSN). This joint venture launched its operations on April 1, 2007. Other businesses were divested or discontinued, including the enterprise networks business which is held for sale.

Operations in the second quarter fiscal 2007

Information and Communications

Siemens Business Services (SBS)


	Second Quarter
							% Change
(€ in millions)	2007			2006			Actual			Adjusted*

Group profit		63			(199	)
Group profit margin		5.2	%		(14.3	)%

Revenue		1,206			1,393			(13	)%		5	%
New orders		964			1,360			(29	)%		(14	)%


*		Excluding currency translation effects of (1)% on revenue and orders, and portfolio effects of (17)% and (14)% on revenue and orders, respectively.

SBS posted Group profit of €63 million on revenue of €1.206 billion in the second quarter. A year earlier, the Group’s second-quarter result included substantial severance charges. SBS recorded no major orders during the quarter, and both revenue and orders were reduced by divestment of the Product Related Services (PRS) division between the periods under review.

Automation and Control

Automation and Drives (A&D)


	Second Quarter
							% Change
(€ in millions)	2007			2006			Actual			Adjusted*

Group profit		526			385			37	%
Group profit margin		14.2	%		12.0	%

Revenue		3,711			3,205			16	%		18	%
New orders		4,154			3,520			18	%		20	%


*		Excluding currency translation effects of (3)% on revenue and orders, and portfolio effects of 1% on revenue and orders.

A&D’s second-quarter Group profit grew 37% year-over-year, to a new high of €526 million. Orders climbed 18% compared to the prior-year period, to €4.154 billion, and revenue grew 16%, to €3.711 billion. A&D’s results for the quarter showed good balance both on a regional level and among the divisions. During the current quarter, A&D announced an agreement to acquire UGS Corp., a leading supplier of product lifecycle management software. The Group expects to complete the acquisition for an aggregate consideration of approximately U.S.$3.5 billion (€2.6 billion) in the third quarter and incur acquisition-related costs.

Industrial Solutions and Services (I&S)


	Second Quarter
							% Change
(€ in millions)	2007			2006			Actual			Adjusted*

Group profit		100			81			23	%
Group profit margin		4.6	%		3.8	%

Revenue		2,172			2,132			2	%		5	%
New orders		2,434			2,447			(1	)%		0	%


*		Excluding currency translation effects of (3)% and (4)% on revenue and orders, respectively, and portfolio effects of 3% on orders.

I&S raised its second-quarter Group profit to €100 million, a 23% increase compared to the prior-year period led by higher earnings and margins in the Industrial Services and Metal Technologies divisions. Revenue for the quarter rose to €2.172 billion, and orders were stable at €2.434 billion.

Siemens Building Technologies (SBT)


	Second Quarter
							% Change
(€ in millions)	2007			2006			Actual			Adjusted*

Group profit		100			54			85	%
Group profit margin		7.5	%		4.6	%

Revenue		1,335			1,169			14	%		19	%
New orders		1,364			1,318			3	%		8	%


*		Excluding currency translation effects of (5)% on revenue and orders.

SBT’s Group profit for the second quarter climbed 85% year-over-year, to €100 million, as all divisions within the Group increased their earnings. Second-quarter revenue rose 14%, to €1.335 billion, and orders of €1.364 billion were up 3% compared to the prior-year period.

Power

Power Generation (PG)


	Second Quarter
							% Change
(€ in millions)	2007			2006			Actual			Adjusted*

Group profit		330			260			27	%
Group profit margin		10.7	%		10.6	%

Revenue		3,072			2,453			25	%		26	%
New orders		5,017			3,259			54	%		54	%


*		Excluding currency translation effects of (4)% and (5)% on revenue and orders, respectively, and portfolio effects of 3% and 5% on revenue and orders, respectively.

PG generated €330 million in Group profit in the second quarter, a 27% rise compared to the prior-year period. Revenue rose 25%, to €3.072 billion, as PG fulfilled strong demand for fossil, wind, and industrial power systems. Order growth was even more robust, with new contract wins totalling €5.017 billion in the quarter. Highlights included an order for two offshore wind farms in Europe, large fossil power generation systems in Europe and the U.S., and significant demand for maintenance service for new and existing fossil power systems.

Power Transmission and Distribution (PTD)


	Second Quarter
							% Change
(€ in millions)	2007			2006			Actual			Adjusted*

Group profit		143			77			86	%
Group profit margin		8.1	%		5.1	%

Revenue		1,756			1,496			17	%		22	%
New orders		2,476			1,797			38	%		43	%


*		Excluding currency translation effects of (5)% on revenue and orders.

PTD delivered Group profit of €143 million, up 86% compared to the second quarter a year earlier, as the Group significantly increased capacity utilization on expanded business volume. As with Group profit, revenue and orders in the current quarter rose on a Group-wide basis. Revenue climbed 17% year-over-year, to €1.756 billion. Orders surged 38%, to €2.476 billion, including major orders in Asia-Pacific and the Middle East.

Transportation

Transportation Systems (TS)


	Second Quarter
							% Change
(€ in millions)	2007			2006			Actual			Adjusted*

Group profit		58			19			205	%
Group profit margin		5.0	%		1.9	%

Revenue		1,161			1,001			16	%		19	%
New orders		714			1,803			(60	)%		(58	)%


*		Excluding currency translation effects of (1)% on revenue, and portfolio effects of (2)% on revenue and orders.

TS recorded Group profit of €58 million compared to €19 million in the second quarter a year earlier. Revenue rose 16% year-over-year, to €1.161 billion, while orders of €714 million included a low number of major new contracts.

Siemens VDO Automotive (SV)


	Second Quarter
							% Change
(€ in millions)	2007			2006			Actual			Adjusted*

Group profit		169			178			(5	)%
Group profit margin		6.3	%		6.8	%

Revenue		2,687			2,615			3	%		4	%
New orders		2,678			2,612			3	%		4	%


*		Excluding currency translation effects of (3)% on revenue and orders, and portfolio effects of 2% on revenue and orders.

SV was again among Siemens’ earnings leaders, with €169 million in Group profit. A year earlier, the Group posted a higher Group profit and profit margin due to a gain on the sale of an investment. Revenue and orders for the quarter rose 3% year-over-year, to €2.687 billion and €2.678 billion, respectively.

Medical

Medical Solutions (Med)


	Second Quarter
							% Change
(€ in millions)	2007			2006			Actual			Adjusted*

Group profit		332			260			28	%
Group profit margin		13.4	%		12.7	%

Revenue		2,470			2,047			21	%		4	%
New orders		2,544			2,096			21	%		5	%


*		Excluding currency translation effects of (7)% on revenue and orders, and portfolio effects of 24% and 23% on revenue and orders, respectively.

Med’s second-quarter Group profit climbed 28% year-over-year, to €332 million. The increase is partly attributable to earnings from the Group’s Diagnostics division, which Med formed between the periods under review by acquiring Diagnostic Products Corp. and the diagnostics division of Bayer AG. Group profit benefited also from divestments as well as from the sale of a portion of Med’s stake in a joint venture, Draeger Medical AG & Co. KG. These gains offset purchase price accounting effects and integration costs associated with the acquisitions. Revenue and orders rose to €2.470 billion and €2.544 billion, respectively, including substantial new volume from the Diagnostics division.

Lighting

Osram


	Second Quarter
							% Change
(€ in millions)	2007			2006			Actual			Adjusted*

Group profit		125			138			(9	)%
Group profit margin		10.5	%		11.4	%

Revenue		1,189			1,206			(1	)%		4	%
New orders		1,189			1,206			(1	)%		4	%


*		Excluding currency translation effects of (5)% on revenue and orders.

Osram posted Group profit of €125 million in the second quarter on revenue of €1.189 billion. The Group’s results in the quarter reflect negative currency effects arising from the strength of the euro.

Strategic Equity Investments
Strategic Equity Investments (SEI) in the second quarter consisted of BSH Bosch und Siemens Hausgeräte GmbH (BSH) and Fujitsu Siemens Computers (Holding) BV. These joint ventures were included within Other Operations in the prior-year quarter. SEI earnings were primarily attributable to BSH, and rose to €99 million from €55 million in the same period a year earlier. Beginning in the third quarter, SEI will include Siemens’ portion of NSN.

Other Operations
Other Operations consist of centrally held operating businesses not related to a Group, including Siemens Home and Office Communication Devices (SHC). Group profit from Other Operations in the second quarter was a negative €81 million, primarily due to a €52 million goodwill impairment at a regional payphone unit. A year earlier, Other Operations posted Group profit of €6 million in the second quarter.

Corporate items, pensions and eliminations
Corporate items, pensions and eliminations totaled a negative €189 million in the second quarter compared to a positive €72 million a year earlier. The change year-over-year is due primarily to effects in the prior-year quarter, including a €95 million gain on the sale of an investment as well as a positive effect related to the settlement of an arbitration proceeding. The current quarter includes €14 million in expenses for outside advisors whom Siemens has engaged in connection with the investigations into alleged violations of anti-corruption laws and related matters as well as remediation activities. These expenses are expected to increase in coming quarters.

Financing and Real Estate

Siemens Financial Services (SFS)


	Second Quarter
(€ in millions)	2007		2006		% Change

Income before income taxes		137		44		211	%


	March 31,		Sept. 30,
	2007		2006

Total assets		9,583		10,543	(9	)%

Income before income taxes at SFS was €137 million in the second quarter. Higher financial income included a special dividend resulting from divestment gains by a company in which SFS holds an equity position. Total assets declined compared to the end of fiscal 2006 primarily due to a reduction in accounts receivable associated with carrier activities carved out of Com.

Siemens Real Estate (SRE)


	Second Quarter
(€ in millions)	2007		2006		% Change

Income before income taxes		42		27		56	%

Revenue		414		429		(3	)%


	March 31,		Sept. 30,
	2007		2006

Total assets		3,168		3,221	(2	)%

Income before income taxes at SRE was €42 million, in part due to lower vacancy charges.

Eliminations, reclassifications and Corporate Treasury
Income before taxes from eliminations, reclassifications and Corporate Treasury in the second quarter was €31 million compared to a negative €230 million a year earlier. The difference resulted primarily from a negative €257 million effect under IFRS in the prior-year quarter, related to mark-to-market valuation of the cash settlement option associated with a €2.5 billion convertible bond issued by Siemens in 2003. This option was irrevocably waived in the third quarter of fiscal 2006, effectively eliminating subsequent earnings effects. In the current quarter, higher interest income from cash and cash equivalents and from intra-company financing was more than offset by higher interest expense associated with the issuance of bonds between the periods under review.

Income statement highlights in the second quarter 2007
Gross profit margin for the second quarter rose to 27.4% from 25.4% in the same period a year earlier. Gross profit climbed significantly on a combination of higher gross margin and higher revenue, including notable increases in gross profit at Med and A&D. Research and development (R&D) expense rose to €874 million from €857 million in the second quarter a year earlier. Due to double-digit revenue growth, R&D declined as percent of sales to 4.2% from 4.6% in the second quarter a year ago. Rising revenue had a similar effect on marketing, selling and general administrative expenses, which remained nearly unchanged at €3.108 billion but fell to 15.1% of sales from 16.5% in the prior-year period.

Other operating income was €112 million, below the €194 million a year earlier which included the positive effect from settlement of an arbitration proceeding mentioned above. Due to the €52 million impairment and €14 million in investigation-related expenses mentioned above, other operating expense increased to €163 million from €35 million in the second quarter of the prior year. Financial income, net was a positive €14 million compared to a negative €37 million a year earlier. While the prior-year period included the €257 million negative effect related to the convertible bond option mentioned above, financial income in the current quarter was held back by higher interest expense, lower income associated with asset retirement obligations, and lower income from financial assets.

Discontinued operations posted a loss of €137 million in the second quarter compared to income of €26 million in the prior-year period. The current quarter included a €148 million impairment and €49 million in pretax expenses related to the investigations mentioned above.

Income and earnings per share in the first six months
Net income for Siemens in the first six months of fiscal 2007 was €2.047 billion, a 10% increase from €1.862 billion in the first half a year earlier. The current period included a penalty of €423 million arising from a previously disclosed European Commission antitrust investigation involving providers of gas-isolated switchgear in the power transmission and distribution industry. Group profit from Operations for the first half of the fiscal year rose 50%, to €3.595 billion, primarily on rising revenue and higher margins at a majority of the Groups in Operations. The change year-over-year was positively influenced by developments at SBS as well, where €363 million in severance charges resulted in a significant loss for the prior-year period but enabled the Group to return to profitability in the current period. Corporate Treasury activities contributed income of €77 million in the first half, compared to a loss of €542 million in the prior-year period resulting primarily from the convertible bond option. Basic and diluted earnings per share for the first six months were €2.17 and €2.09, respectively, compared to €1.98 and €1.97, respectively, in the same period a year earlier.

Income from continuing operations was €2.110 billion in the first half, up 40% from €1.504 billion a year earlier. On a continuing basis, basic and diluted earnings per share were €2.26 and €2.17, respectively, compared to €1.60 and €1.59 in the same period a year earlier. Discontinued operations lost €63 million compared to income of €358 million in the first half of the prior year. The current period includes a €148 million impairment. The prior-year period benefited from a €356 million gain on the sale of shares in Juniper Networks, Inc. (Juniper), partially offset by €164 million in severance charges.

Revenue and order trends for the first half 2007
In the first six months of fiscal 2007, revenue was €39.694 billion, an 8% increase from €36.800 billion in the prior-year period. Orders of €48.051 billion were up 6% from €45.196 billion a year earlier. Excluding currency translation effects and the net effect of acquisitions and dispositions, revenue rose 12% and orders climbed 9%.

International revenue for the first six months climbed 9% year-over-year, to €31.934 billion, and orders for the first six months rose 7%, to €39.354 billion. In Germany, revenue for the first half-year was up 4%, at €7.760 billion, and orders increased 5%, to €8.697 billion. On a regional basis, Europe (excluding Germany) was the strongest contributor to international volume growth, with revenue climbing 10%, to €12.733 billion, and orders rising 13%, to €15.911 billion. Both revenue and orders grew in the Americas as well, where first-half revenue of €10.324 billion was up 3% and orders of €12.716 billion came in 14% above the prior-year level. Adjusting for currency translation and portfolio effects, revenue and orders in the Americas were up 11% and 23%, respectively.

While revenue in Asia-Pacific for the first six months grew 11%, to €5.589 billion, orders of €6.488 billion came in 7% lower. Both developments stemmed from a high level of orders in Asia-Pacific in prior periods. This was particularly evident in China, where revenue of €1.949 billion for the first half was 4% higher than the prior-year level, but orders of €2.209 billion were 21% lower than a year earlier. The Africa/Middle East/Commonwealth of Independent States (CIS) region shared a similar development in the first half. Though orders of €4.239 billion were substantially higher than revenue of €3.288 billion, revenue was up 22% year-over-year, and orders were 10% below the prior-year level.

Liquidity for the first six months
Net cash used in operating and investing activities was €3.777 billion in the first six months of fiscal 2007, including €4.2 billion in cash used to acquire the diagnostics division of Bayer AG. A year earlier, net cash used was €417 million. Discontinued operations was another major factor in the difference year-over-year. In the current period, discontinued operations used net cash of €1.716 billion, including a build-up of net working capital, particularly receivables. In the prior-year period, discontinued operations used net cash of €231 million, benefiting from €465 million in proceeds from the Juniper share sales. On a continuing basis, Siemens in the first six month of fiscal 2007 used €2.061 billion in net cash from operating and investing activities, compared to €186 million used in the same period a year earlier.


							SFS, SRE and
							Corporate
Continuing operations	Operations						Treasury *						Siemens
	Six months ended March 31,
(€ in millions)	2007			2006			2007			2006			2007			2006
Net cash provided by (used in):
Operating activities		2,173			865			1,708			867			3,881			1,732
Investing activities		(5,496	)		(1,416	)		(446	)		(502	)		(5,942	)		(1,918	)

Net cash provided by (used in) operating and investing activities — continuing operations		(3,323	)		(551	)		1,262			365			(2,061	)		(186	)


*		Also includes eliminations and reclassifications.

Within Operations, net cash used in operating and investing activities was €3.323 billion in the first six months of fiscal 2007 compared to €551 million in net cash used in the same period a year earlier. The increase in net cash provided by operating activities within Operations was due mainly to a significantly lower increase of net working capital compared to the prior period, particularly with regard to net inventories at I&S and PG. Cash used in investing activities within Operations was significantly higher compared to the first six months a year earlier, primarily due to payments totaling €4.2 billion for Bayer’s diagnostics business at Med and cash used to acquire AG Kühnle, Kopp & Kausch at PG. SFS, SRE and Siemens’ Corporate Treasury provided net cash from operating and investing activities of €1.262 billion compared to €365 million in net cash provided in the prior-year period. The change year-over-year is primarily due to higher net cash inflows related to receivables at SFS.

Funding status of pension plans
The estimated underfunding of Siemens’ principal pension plans as of March 31, 2007, amounted to approximately €1.7 billion compared to an underfunding of approximately €2.9 billion at the end of fiscal 2006. The improvement in funding status is primarily due to regular contributions and the actual return on plan assets. The effect of service and interest cost on the defined benefit obligation was offset by an increase in the discount rate assumption at March 31, 2007, reducing Siemens’ estimated defined benefit obligation. The negative impact of increases in interest rates on fixed income investments was more than offset by strong performance in equity markets resulting in an actual return on plan assets of €849 million during the last six months. This represents a 7.3% return on an annualized basis, compared to the expected annual return of 6.5%.

Subsequent event
After the close of the second quarter, Siemens completed the formation of its NSN joint venture with Nokia and the joint venture commenced operations on April 1, 2007. The transaction is expected to result in a significant non-cash gain in the third quarter.

Starting today at 9:00 a.m. CEST, we will provide a live video webcast on the Internet of the semi-annual press conference with CEO Dr. Klaus Kleinfeld and CFO Joe Kaeser. You can access the webcast at www.siemens.com/pressconference. You will also be able to download the presentation. A video of the speeches will be available after the live webcast. Starting at 16:00 a.m. CEST, Siemens CEO Dr. Klaus Kleinfeld and CFO Joe Kaeser will hold a conference with analysts and investors. You can follow the conference live on the Internet by going to www.siemens.com/analystcall.

Note: This Earnings Release should be read in conjunction with information Siemens published today regarding the investigations mentioned above. An update of Siemens’ annual Form 20-F disclosure regarding legal proceedings is provided in the Interim Report.

IFRS Conversion
Beginning with the first quarter of fiscal 2007, Siemens prepares its primary financial reporting according to International Financial Reporting Standards (IFRS). For the years prior to fiscal 2007, Siemens prepared its primary financial reporting according to United States Generally Accepted Accounting Principles (U.S. GAAP). As part of its transition to IFRS, Siemens has published IFRS Consolidated Financial Statements for fiscal 2006 and fiscal 2005 as supplemental information to its U.S. GAAP figures. This document is available at www.siemens.com/investors, where you can also find a presentation explaining major differences between IFRS and U.S. GAAP in Siemens financial results.


Siemens AG		Reference number: AXX200704.75 e
Corporate Communications		Wolfram Trost
Media Relations		80312 Munich
80312 Munich		Tel.: +49 89 636-34794 Fax: -32825
		E-mail: wolfram.trost@siemens.com

SIEMENS

SEGMENT INFORMATION (continuing operations — unaudited)
As of and for the three months ended March 31, 2007 and 2006 and as of September 30, 2006
(in millions of €)


																																			Net cash from											Amortization,
											Intersegment																		Net capital						operating and						Capital					depreciation and
	New orders						External revenue				revenue						Total revenue						Group profit⁽¹⁾						employed⁽²⁾						investing activities						spending⁽³⁾					impairments⁽⁴⁾
	2007			2006			2007		2006		2007			2006			2007			2006			2007			2006			3/31/07			9/30/06			2007			2006			2007		2006			2007			2006

Operations Groups ⁽⁵⁾
Siemens Business Services (SBS)		964			1,360			893		1,107		313			286			1,206			1,393			63			(199	)		394			171			(7	)		(329	)		62		83			68			68
Automation and Drives (A&D)		4,154			3,520			3,287		2,854		424			351			3,711			3,205			526			385			4,321			3,837			393			132			135		233			74			85
Industrial Solutions and Services (I&S)		2,434			2,447			1,909		1,889		263			243			2,172			2,132			100			81			1,311			1,279			101			114			59		57			29			32
Siemens Building Technologies (SBT)		1,364			1,318			1,310		1,147		25			22			1,335			1,169			100			54			1,804			1,764			183			75			26		48			39			28
Power Generation (PG)		5,017			3,259			3,067		2,444		5			9			3,072			2,453			330			260			1,932			1,945			703			(51	)		65		130			59			54
Power Transmission and Distribution (PTD)		2,476			1,797			1,628		1,388		128			108			1,756			1,496			143			77			1,860			1,701			68			(12	)		47		36			22			30
Transportation Systems (TS)		714			1,803			1,151		987		10			14			1,161			1,001			58			19			(51	)		111			145			61			19		38			14			12
Siemens VDO Automotive (SV)		2,678			2,612			2,684		2,611		3			4			2,687			2,615			169			178			3,846			3,767			195			221			98		118			108			105
Medical Solutions (Med)		2,544			2,096			2,453		2,034		17			13			2,470			2,047			332			260			8,760			4,975			(3,398	)		314			4,009		87			130			66
Osram		1,189			1,206			1,173		1,186		16			20			1,189			1,206			125			138			2,076			1,976			177			116			71		73			62			68
Strategic Equity Investments (SEI) ⁽⁶⁾		—			—			—		—		—			—			—			—			99			55			1,172			1,008			—			—			—		—			—			—
Other Operations		1,079			1,127			743		867		253			239			996			1,106			(81	)		6			121			48			47			(100	)		45		65			80			34

Total Operations Groups		24,613			22,545			20,298		18,514		1,457			1,309			21,755			19,823			1,964			1,314			27,546			22,582			(1,393	)		541			4,636		968			685			582
Reconciliation to financial statements
Corporate items, pensions and eliminations		(1,348	)		(1,249	)		51		22		(1,379	)		(1,251	)		(1,328	)		(1,229	)		(189	)		72			(4,705	)		(6,584	)		(528	)⁽⁷⁾		(272	)⁽⁷⁾		25		(3	)		(1	)		3
Other interest expense		—			—			—		—		—			—			—			—			(153	)		(93	)		—			—			—			—			—		—			—			—
Other assets related and miscellaneous reconciling items		—			—			—		—		—			—			—			—			—			—			63,107			64,224			—			—			—		—			—			—

Total Operations (for columns Group profit/Net capital employed, i.e. Income before income taxes/Total assets)		23,265			21,296			20,349		18,536		78			58			20,427			18,594			1,622			1,293			85,948			80,222			(1,921	)		269			4,661		965			684			585


																							Income before
																							income taxes						Total assets

Financing and Real Estate Groups
Siemens Financial Services (SFS)		177			159			159		138		18			21			177			159			137			44			9,583			10,543			883			55			118		103			63			57
Siemens Real Estate (SRE)		414			429			118		150		296			279			414			429			42			27			3,168			3,221			142			(10	)		40		73			38			50
Eliminations		(4	)		(3	)		—		—		(4	)		(3	)		(4	)		(3	)		—			—			(470	)		(462	)		62	⁽⁷⁾		74	⁽⁷⁾		—		—			—			—

Total Financing and Real Estate		587			585			277		288		310			297			587			585			179			71			12,281			13,302			1,087			119			158		176			101			107

Eliminations, reclassifications and Corporate Treasury		(383	)		(352	)		—		—		(388	)		(355	)		(388	)		(355	)		31			(230	)		(7,441	)		(5,793	)		(67)	⁽⁷⁾		150	⁽⁷⁾		—		—			—			—

Siemens		23,469			21,529			20,626		18,824		—			—			20,626			18,824			1,832			1,134			90,788			87,731			(901	)		538			4,819		1,141			785			692


(1)		Group profit of the Operations Groups is earnings before financing interest, certain pension costs and income taxes.

(2)		Net capital employed of the Operations Groups represents total assets less tax assets, provisions and non-interest bearing liabilities other than tax liabilities.

(3)		Intangible assets, property, plant and equipment, acquisitions, non-current available-for-sale financial assets and investments accounted for using the equity method.

(4)		Includes amortization and impairments of intangible assets, depreciation of property, plant and equipment, and write-downs of non-current available-for-sale financial assets and investments accounted for using the equity method.

(5)		Communications (Com) no longer represents an operating segment. The primary business components of Com are reported as discontinued operations.

(6)		SEI was created as of October 1, 2006 and includes certain strategic investments accounted for using the equity method. Prior-year information was reclassified for comparability purposes.

(7)		Includes cash paid for income taxes according to the allocation of income taxes to Operations, Financing and Real Estate, and Eliminations, reclassifications and Corporate Treasury in the Consolidated Statements of Income. Furthermore, the reclassification of interest payments in the Consolidated Statements of Cash Flow from operating activities into financing activities is shown in Eliminations. Interest payments are external interest paid as well as intragroup interest paid and received.

SIEMENS

SEGMENT INFORMATION (continuing operations — unaudited)
As of and for the six months ended March 31, 2007 and 2006 and as of September 30, 2006
(in millions of €)


																																			Net cash from										Amortization,
											Intersegment																		Net capital						operating and						Capital				depreciation and
	New orders						External revenue				revenue						Total revenue						Group profit⁽¹⁾						employed⁽²⁾						investing activities						spending⁽³⁾				impairments⁽⁴⁾
	2007			2006			2007		2006		2007			2006			2007			2006			2007			2006			3/31/07			9/30/06			2007			2006			2007		2006		2007			2006

Operations Groups ⁽⁵⁾
Siemens Business Services (SBS)		2,181			2,865			1,781		2,247		605			552			2,386			2,799			87			(431	)		394			171			(138	)		(742	)		130		159		137			136
Automation and Drives (A&D)		8,173			7,202			6,281		5,482		820			691			7,101			6,173			976			744			4,321			3,837			512			247			234		349		144			141
Industrial Solutions and Services (I&S)		5,491			5,152			3,750		3,651		495			459			4,245			4,110			190			145			1,311			1,279			72			27			85		152		56			65
Siemens Building Technologies (SBT)		2,750			2,691			2,505		2,234		43			37			2,548			2,271			172			110			1,804			1,764			125			(72	)		82		164		66			53
Power Generation (PG)		10,034			7,319			5,777		4,515		21			12			5,798			4,527			499			438			1,932			1,945			566			165			297		266		114			104
Power Transmission and Distribution (PTD)		5,622			4,270			3,241		2,738		243			214			3,484			2,952			273			159			1,860			1,701			121			22			91		67		48			59
Transportation Systems (TS)		1,933			3,880			2,212		2,022		22			39			2,234			2,061			105			36			(51	)		111			326			226			44		72		27			24
Siemens VDO Automotive (SV)		5,092			5,060			5,100		5,056		5			7			5,105			5,063			315			334			3,846			3,767			216			248			195		282		218			206
Medical Solutions (Med)		4,755			4,252			4,541		4,009		31			22			4,572			4,031			636			503			8,760			4,975			(3,619	)		402			4,479		141		205			128
Osram		2,363			2,364			2,332		2,325		31			39			2,363			2,364			248			259			2,076			1,976			119			223			144		140		123			130
Strategic Equity Investments (SEI) ⁽⁶⁾		—			—			—		—		—			—			—			—			151			101			1,172			1,008			—			—			—		—		—			—
Other Operations		2,047			2,426			1,556		1,926		451			439			2,007			2,365			(57	)		(7	)		121			48			(101	)		(293	)		76		159		114			71

Total Operations Groups		50,441			47,481			39,076		36,205		2,767			2,511			41,843			38,716			3,595			2,391			27,546			22,582			(1,801	)		453			5,857		1,951		1,252			1,117
Reconciliation to financial statements
Corporate items, pensions and eliminations		(2,816	)		(2,752	)		74		39		(2,616	)		(2,417	)		(2,542	)		(2,378	)		(852	)		(19	)		(4,705	)		(6,584	)		(1,522	)⁽⁷⁾		(1,004	)⁽⁷⁾		38		63		(3	)		1
Other interest expense		—			—			—		—		—			—			—			—			(254	)		(178	)		—			—			—			—			—		—		—			—
Other assets related and miscellaneous reconciling items		—			—			—		—		—			—			—			—			—			—			63,107			64,224			—			—			—		—		—			—

Total Operations (for columns Group profit/Net capital employed, i.e. Income before income taxes/Total assets)		47,625			44,729			39,150		36,244		151			94			39,301			36,338			2,489			2,194			85,948			80,222			(3,323	)		(551	)		5,895		2,014		1,249			1,118


																							Income before
																							income taxes						Total assets

Financing and Real Estate Groups
Siemens Financial Services (SFS)		355			309			307		270		47			39			354			309			220			122			9,583			10,543			988			144			203		216		127			113
Siemens Real Estate (SRE)		835			840			237		286		598			554			835			840			111			131			3,168			3,221			142			18			84		130		78			92
Eliminations		(7	)		(6	)		—		—		(7	)		(6	)		(7	)		(6	)		—			—			(470	)		(462	)		99	⁽⁷⁾		138	⁽⁷⁾		—		—		—			—

Total Financing and Real Estate		1,183			1,143			544		556		638			587			1,182			1,143			331			253			12,281			13,302			1,229			300			287		346		205			205

Eliminations, reclassifications and Corporate Treasury		(757	)		(676	)		—		—		(789	)		(681	)		(789	)		(681	)		77			(542	)		(7,441	)		(5,793	)		33	⁽⁷⁾		65	⁽⁷⁾		—		—		—			—

Siemens		48,051			45,196			39,694		36,800		—			—			39,694			36,800			2,897			1,905			90,788			87,731			(2,061	)		(186	)		6,182		2,360		1,454			1,323


(1)		Group profit of the Operations Groups is earnings before financing interest, certain pension costs and income taxes.

(2)		Net capital employed of the Operations Groups represents total assets less tax assets, provisions and non-interest bearing liabilities other than tax liabilities.

(3)		Intangible assets, property, plant and equipment, acquisitions, non-current available-for-sale financial assets and investments accounted for using the equity method.

(4)		Includes amortization and impairments of intangible assets, depreciation of property, plant and equipment, and write-downs of non-current available-for-sale financial assets and investments accounted for using the equity method.

(5)		Communications (Com) no longer represents an operating segment. The primary business components of Com are reported as discontinued operations.

(6)		SEI was created as of October 1, 2006 and includes certain strategic investments accounted for using the equity method. Prior-year information was reclassified for comparability purposes.

(7)		Includes cash paid for income taxes according to the allocation of income taxes to Operations, Financing and Real Estate, and Eliminations, reclassifications and Corporate Treasury in the Consolidated Statements of Income. Furthermore, the reclassification of interest payments in the Consolidated Statements of Cash Flow from operating activities into financing activities is shown in Eliminations. Interest payments are external interest paid as well as intragroup interest paid and received.

SIEMENS

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the three months ended March 31, 2007 and 2006
(in millions of €, per share amounts in €)


							Eliminations,
							reclassifications and												Financing and Real
	Siemens						Corporate Treasury						Operations						Estate
	2007			2006			2007			2006			2007			2006			2007			2006
Revenue		20,626			18,824			(388	)		(355	)		20,427			18,594			587			585
Cost of goods sold and services rendered		(14,965	)		(14,048	)		388			355			(14,891	)		(13,898	)		(462	)		(505	)

Gross profit		5,661			4,776			—			—			5,536			4,696			125			80
Research and development expenses		(874	)		(857	)		—			—			(874	)		(857	)		—			—
Marketing, selling and general administrative expenses		(3,108	)		(3,104	)		—			(1	)		(3,015	)		(3,017	)		(93	)		(86	)
Other operating income		112			194			(17	)		(22	)		85			169			44			47
Other operating expense		(163	)		(35	)		(2	)		(1	)		(156	)		(31	)		(5	)		(3	)
Income from investments accounted for using the equity method, net		190			197			—			—			164			181			26			16
Financial income (expense), net		14			(37	)		50			(206	)		(118	)		152			82			17

Income (loss) from continuing operations before income taxes		1,832			1,134			31			(230	)		1,622			1,293			179			71
Income taxes ⁽¹⁾		(436	)		(237	)		(6	)		47			(390	)		(270	)		(40	)		(14	)

Income (loss) from continuing operations		1,396			897			25			(183	)		1,232			1,023			139			57
Income (loss) from discontinued operations, net of income taxes		(137	)		26			—			—			(137	)		26			—			—

Net income (loss)		1,259			923			25			(183	)		1,095			1,049			139			57

Attributable to:
Minority interest		63			50
Shareholders of Siemens AG		1,196			873
Basic earnings per share
Income from continuing operations		1.50			0.95
Income (loss) from discontinued operations		(0.16	)		0.03

Net income		1.34			0.98

Diluted earnings per share
Income from continuing operations		1.44			0.95
Income (loss) from discontinued operations		(0.16	)		0.03

Net income		1.28			0.98






CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE RECOGNIZED IN EQUITY (unaudited)
For the three months ended March 31, 2007 and 2006
(in millions of €)

	Siemens
	2007			2006
Net income		1,259			923
Currency translation differences		(94	)		(172	)
Available-for-sale financial assets		(44	)		93
Derivative financial instruments		—			22
Actuarial gains and losses on pension plans and similar commitments		116			1,058
Revaluation effect related to step acquisitions		3			—

Total income and expense recognized directly in equity, net of tax ⁽²⁾⁽³⁾		(19	)		1,001

Total income and expense recognized in equity		1,240			1,924

Attributable to:
Minority interest		60			38
Shareholders of Siemens AG		1,180			1,886


(1)		The income taxes of Eliminations, reclassifications and Corporate Treasury, Operations, and Financing and Real Estate are based on the consolidated effective corporate tax rate applied to income before income taxes.

(2)		Includes €(35) and €(21) in 2007 and 2006, respectively, resulting from investments accounted for using the equity method.

(3)		Includes minority interest of €(3) and €(12) in 2007 and 2006, respectively, relating to currency translation differences.

SIEMENS

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the six months ended March 31, 2007 and 2006
(in millions of €, per share amounts in €)


							Eliminations,
							reclassifications and												Financing and Real
	Siemens						Corporate Treasury						Operations						Estate
	2007			2006			2007			2006			2007			2006			2007			2006
Revenue		39,694			36,800			(789	)		(681	)		39,301			36,338			1,182			1,143
Cost of goods sold and services rendered		(29,228	)		(27,502	)		789			681			(29,072	)		(27,230	)		(945	)		(953	)

Gross profit		10,466			9,298			—			—			10,229			9,108			237			190
Research and development expenses		(1,655	)		(1,648	)		—			—			(1,655	)		(1,648	)		—			—
Marketing, selling and general administrative expenses		(5,951	)		(6,110	)		(1	)		(1	)		(5,765	)		(5,945	)		(185	)		(164	)
Other operating income		340			394			(40	)		(44	)		259			286			121			152
Other operating expense		(662	)		(69	)		(2	)		(1	)		(649	)		(61	)		(11	)		(7	)
Income from investments accounted for using the equity method, net		350			339			—			—			307			308			43			31
Financial income (expense), net		9			(299	)		120			(496	)		(237	)		146			126			51

Income (loss) from continuing operations before income taxes		2,897			1,905			77			(542	)		2,489			2,194			331			253
Income taxes ⁽¹⁾		(787	)		(401	)		(21	)		114			(676	)		(462	)		(90	)		(53	)

Income (loss) from continuing operations		2,110			1,504			56			(428	)		1,813			1,732			241			200
Income (loss) from discontinued operations, net of income taxes		(63	)		358			—			—			(63	)		358			—			—

Net income (loss)		2,047			1,862			56			(428	)		1,750			2,090			241			200

Attributable to:
Minority interest		112			103
Shareholders of Siemens AG		1,935			1,759
Basic earnings per share
Income from continuing operations		2.26			1.60
Income (loss) from discontinued operations		(0.09	)		0.38

Net income		2.17			1.98

Diluted earnings per share
Income from continuing operations		2.17			1.59
Income (loss) from discontinued operations		(0.08	)		0.38

Net income		2.09			1.97






CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE RECOGNIZED IN EQUITY (unaudited)
For the six months ended March 31, 2007 and 2006
(in millions of €)

	Siemens
	2007			2006

Net income		2,047			1,862
Currency translation differences		(261	)		(21	)
Available-for-sale financial assets		(2	)		(127	)
Derivative financial instruments		53			(47	)
Actuarial gains and losses on pension plans and similar commitments		625			837
Revaluation effect related to step acquisitions		3			—

Total income and expense recognized directly in equity, net of tax ⁽²⁾⁽³⁾		418			642

Total income and expense recognized in equity		2,465			2,504

Attributable to:
Minority interest		97			102
Shareholders of Siemens AG		2,368			2,402


(1)		The income taxes of Eliminations, reclassifications and Corporate Treasury, Operations, and Financing and Real Estate are based on the consolidated effective corporate tax rate applied to income before income taxes.

(2)		Includes €(30) and €1 in 2007 and 2006, respectively, resulting from investments accounted for using the equity method.

(3)		Includes minority interest of €(15) and €(1) in 2007 and 2006, respectively, relating to currency translation differences.

SIEMENS

CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited)
For the six months ended March 31, 2007 and 2006
(in millions of €)


							Eliminations,
							reclassifications and												Financing and Real
	Siemens						Corporate Treasury						Operations						Estate
	2007			2006			2007			2006			2007			2006			2007			2006
Cash flows from operating activities
Net income (loss)		2,047			1,862			56			(428	)		1,750			2,090			241			200
Adjustments to reconcile net income to cash provided Amortization, depreciation and impairments		1,620			1,508			—			—			1,415			1,303			205			205
Income taxes		754			348			21			(114	)		643			409			90			53
Interest (income) expense, net		52			(96	)		(160	)		(218	)		274			199			(62	)		(77	)
(Gains) on sales and disposals of businesses, intangibles and property, plant and equipment		(188	)		(150	)		—			—			(116	)		(46	)		(72	)		(104	)
(Gains) on sales of investments, net ⁽¹⁾		(69	)		(91	)		—			—			(37	)		(91	)		(32	)		—
(Gains) losses on sales and impairments of current available-for-sale financial assets, net		5			(454	)		—			—			5			(454	)		—			—
(Income) from investments ⁽¹⁾		(385	)		(305	)		—			—			(306	)		(275	)		(79	)		(30	)
Other non-cash (income) expenses		51			148			12			80			51			73			(12	)		(5	)
Change in current assets and liabilities (Increase) decrease in inventories		(1,045	)		(1,943	)		—			—			(1,002	)		(1,959	)		(43	)		16
(Increase) decrease in trade and other receivables		(352	)		5			1,190			359			(1,532	)		(357	)		(10	)		3
(Increase) decrease in other current assets		(19	)		(154	)		44			(43	)		(126	)		(172	)		63			61
Increase (decrease) in trade payables		(79	)		(228	)		(40	)		(3	)		(38	)		(240	)		(1	)		15
Increase (decrease) in current provisions		(366	)		(217	)		—			—			(343	)		(206	)		(23	)		(11	)
Increase (decrease) in other current liabilities		1,627			1,328			262			679			1,326			618			39			31
Change in other assets and liabilities		(795	)		(97	)		(229	)		86			(575	)		(112	)		9			(71	)
Income taxes paid		(932	)		(603	)		(25	)		(33	)		(801	)		(527	)		(106	)		(43	)
Dividends received		105			66			—			—			45			50			60			16
Interest received		386			320			106			63			76			85			204			172

Net cash provided by operating activities — continuing and discontinued operations		2,417			1,247			1,237			428			709			388			471			431
Net cash provided by operating activities — continuing operations		3,881			1,732			1,237			436			2,173			865			471			431
Cash flows from investing activities
Additions to intangible assets and property, plant and equipment		(1,682	)		(1,800	)		—			—			(1,399	)		(1,473	)		(283	)		(327	)
Acquisitions, net of cash acquired		(4,551	)		(491	)		—			—			(4,551	)		(488	)		—			(3	)
Purchases of investments ⁽¹⁾		(127	)		(261	)		—			—			(123	)		(245	)		(4	)		(16	)
Purchases of current available-for-sale financial assets		(17	)		(43	)		—			—			(2	)		(41	)		(15	)		(2	)
(Increase) decrease in receivables from financing activities		(340	)		(294	)		(1,204	)		(371	)		—			—			864			77
Proceeds from sales of investments, intangibles and property, plant and equipment ⁽¹⁾		466			431			—			—			277			291			189			140
Proceeds from disposals of businesses		32			3			—			—			32			3			—			—
Proceeds from sales of current available-for-sale financial assets		25			791			—			—			18			791			7			—

Net cash provided by (used in) investing activities — continuing and discontinued operations		(6,194	)		(1,664	)		(1,204	)		(371	)		(5,748	)		(1,162	)		758			(131	)
Net cash provided by (used in) investing activities — continuing operations		(5,942	)		(1,918	)		(1,204	)		(371	)		(5,496	)		(1,416	)		758			(131	)
Cash flows from financing activities
Proceeds from issuance of common stock		343			—			—			—			343			—			—			—
Purchase of common stock		(101	)		(377	)		—			—			(101	)		(377	)		—			—
Proceeds from re-issuance of treasury stock		66			277			—			—			66			277			—			—
Proceeds from issuance of debt		—			833			—			833			—			—			—			—
Repayment of debt		(1,146	)		—			(1,146	)		—			—			—			—			—
Change in short-term debt		3,116			(1,105	)		3,008			(770	)		142			(259	)		(34	)		(76	)
Interest paid		(469	)		(232	)		(379	)		(139	)		(61	)		(64	)		(29	)		(29	)
Dividends paid		(1,292	)		(1,201	)		—			—			(1,292	)		(1,201	)		—			—
Dividends paid to minority shareholders		(102	)		(77	)		—			—			(102	)		(77	)		—			—
Intragroup financing		—			—			(5,708	)		(1,897	)		6,881			2,095			(1,173	)		(198	)

Net cash provided by (used in) financing activities		415			(1,882	)		(4,225	)		(1,973	)		5,876			394			(1,236	)		(303	)
Effect of exchange rates on cash and cash equivalents		(6	)		—			2			(1	)		(8	)		1			—			—
Net increase (decrease) in cash and cash equivalents		(3,368	)		(2,299	)		(4,190	)		(1,917	)		829			(379	)		(7	)		(3	)
Cash and cash equivalents at beginning of period		10,214			8,121			9,072			6,603			1,109			1,471			33			47

Cash and cash equivalents at end of period		6,846			5,822			4,882			4,686			1,938			1,092			26			44
Less: Cash and cash equivalents of discontinued operations at end of period		953			—			—			—			953			—			—			—

Cash and cash equivalents of continuing operations at end of period		5,893			5,822			4,882			4,686			985			1,092			26			44


(1)		Investments include equity instruments either classified as non-current available-for-sale financial assets or accounted for using the equity method.

SIEMENS

CONSOLIDATED BALANCE SHEETS (unaudited)
As of March 31, 2007 and September 30, 2006
(in millions of €)


						Eliminations,
						reclassifications and										Financing and Real
	Siemens					Corporate Treasury						Operations				Estate
	3/31/07			9/30/06		3/31/07			9/30/06			3/31/07		9/30/06		3/31/07		9/30/06
ASSETS
Current assets
Cash and cash equivalents		5,893			10,214		4,882			9,072			985		1,109		26		33
Available-for-sale financial assets		551			596		388			416			137		160		26		20
Trade and other receivables		15,706			15,148		(1	)		—			12,552		10,885		3,155		4,263
Other current financial assets		2,894			2,370		159			145			1,731		1,314		1,004		911
Intragroup receivables		—			—		(13,241	)		(15,736	)		13,198		15,680		43		56
Inventories		14,198			12,790		(2	)		(2	)		14,101		12,735		99		57
Income tax receivables		425			458		1			2			388		445		36		11
Other current assets		1,369			1,274		—			48			1,236		1,122		133		104
Assets classified as held for disposal		8,536			7,164		(25	)		(21	)		8,561		7,180		—		5

Total current assets		49,572			50,014		(7,839	)		(6,076	)		52,889		50,630		4,522		5,460

Goodwill		12,111			9,689		—			—			11,981		9,557		130		132
Other intangible assets		4,112			3,385		—			—			4,098		3,368		14		17
Property, plant and equipment		12,419			12,072		—			—			8,736		8,310		3,683		3,762
Investments accounted for using the equity method		3,182			2,956		—			—			2,953		2,738		229		218
Other financial assets		5,471			5,042		522			215			1,383		1,232		3,566		3,595
Intragroup receivables		—			—		(177	)		(348	)		177		348		—		—
Deferred tax assets		3,178			3,860		52			222			3,013		3,532		113		106
Other assets		743			713		1			194			718		507		24		12

Total assets		90,788			87,731		(7,441	)		(5,793	)		85,948		80,222		12,281		13,302

LIABILITIES AND EQUITY
Current liabilities
Short-term debt and current maturities of long-term debt		4,173			2,175		3,218			1,433			731		530		224		212
Trade payables		8,821			8,443		(1	)		28			8,555		8,140		267		275
Other current financial liabilities		1,915			1,035		760			508			1,061		483		94		44
Intragroup liabilities		—			—		(17,606	)		(16,406	)		12,098		9,886		5,508		6,520
Current provisions		3,693			3,859		—			—			3,617		3,770		76		89
Income tax payables		1,356			1,487		11			2			1,321		1,468		24		17
Other current liabilities		16,801			16,485		139			227			16,420		15,974		242		284
Liabilities associated with assets classified as held for disposal		5,213			5,385		(16	)		(16	)		5,229		5,401		—		—

Total current liabilities		41,972			38,869		(13,495	)		(14,224	)		49,032		45,652		6,435		7,441

Long-term debt		12,625			13,122		11,580			11,946			640		744		405		432
Pension plans and similar commitments		3,841			5,083		—			—			3,839		5,081		2		2
Deferred tax liabilities		125			102		(441	)		(397	)		119		95		447		404
Provisions		1,898			1,858		—			—			1,792		1,761		106		97
Other financial liabilities		289			248		37			19			200		177		52		52
Other liabilities		2,355			2,174		41			41			2,265		2,054		49		79
Intragroup liabilities		—			—		(5,163	)		(3,178	)		2,339		434		2,824		2,744

Total liabilities		63,105			61,456		(7,441	)		(5,793	)		60,226		55,998		10,320		11,251

Equity
Common stock, no par value ⁽¹⁾		2,689			2,673
Additional paid-in capital		6,013			5,662
Retained earnings		18,353			17,082
Other components of equity		(39	)		156
Treasury shares, at cost ⁽²⁾		—			—

Total equity attributable to shareholders of Siemens AG		27,016			25,573

Minority interest		667			702

Total equity		27,683			26,275		—			—			25,722		24,224		1,961		2,051

Total liabilities and equity		90,788			87,731		(7,441	)		(5,793	)		85,948		80,222		12,281		13,302


(1)		Authorized: 1,119,926,600 and 1,116,087,241 shares, respectively. Issued: 896,216,600 and 891,087,241 shares, respectively.

(2)		1,187 and 415 shares, respectively.


		Munich, April 26, 2007

Update on Compliance and AUB

Update on Com and Related Investigations

As previously reported, Munich public prosecutors are conducting an investigation of certain current and former employees of Siemens AG (the Company) on suspicion of embezzlement, bribery and tax evasion. Arrest warrants were issued for former and currently suspended employees of our Com business Group who were taken into custody, questioned and later released. In December 2006, the former Chief Executive Officer (CEO) of Com was arrested, questioned and released. Siemens’ former Chief Financial Officer (CFO) was interrogated as a suspect by the public prosecutor. Both of these individuals are former members of the Corporate Executive Committee of Siemens.

On March 26, 2007, the Munich public prosecutors conducted further searches of the Company’s premises and of private residences in Munich and executed additional arrest warrants for a current and a former employee of Com. The individuals were later released and the current employee has since been suspended. The Munich public prosecutors’ investigation as well as related investigations in Liechtenstein, Switzerland, Italy, Greece and other countries are ongoing.

The U.S. Department of Justice is conducting an investigation of possible criminal violations of U.S. law by Siemens in connection with these matters. During the second quarter of fiscal 2007, Siemens was advised that the U.S. Securities and Exchange Commission’s enforcement division had converted its informal inquiry into these matters into a formal investigation.

With regard to the foregoing matters, the Company has engaged Debevoise & Plimpton LLP (Debevoise), an independent external law firm, to conduct an independent and comprehensive investigation to determine whether anti-corruption regulations have been violated and to conduct an independent and comprehensive assessment of the compliance and control systems of Siemens. Debevoise reports directly and exclusively to the Audit Committee of the Supervisory Board and is being assisted by forensic accountants from the international accounting firm Deloitte Touche. Debevoise’s investigation of allegations of corruption at Com is ongoing. The scope of the independent investigation also includes an investigation of potential anti-corruption violations at the Company’s other Groups which is in the process of being launched.

On February 2, 2007, an alleged ADS holder of the Company filed a derivative lawsuit with the Supreme Court of the State of New York against certain current and former members of the Company’s Managing and Supervisory Boards as well as against the Company as a nominal defendant, seeking various forms of relief relating to the allegations of corruption and related violations at Siemens. The suit is currently stayed.


Siemens AG
Corporate Communications
Media Relations
80312 Munich

Update on Internal Analyses Undertaken by the Company

In addition to the independent investigation being conducted by Debevoise, the Company has also continued to conduct its own analysis of issues raised by allegations of violations of anti-corruption legislation.

The current status of the Company’s analysis is summarized below:

	•		Within Com a number of Business Consultant Agreements (BCAs) have been identified. We have identified a multitude of payments made in connection with these contracts for which we have not yet been able either to establish a valid business purpose or to clearly identify the recipient. These payments raise concerns in particular under the Foreign Corrupt Practices Act (FCPA) in the United States, anti-corruption legislation in Germany and similar legislation in other countries.

	•		The payments identified were recorded as deductible business expenses in prior periods in determining income tax provisions. As previously reported, our investigation determined that certain of these payments were nondeductible under German tax regulations, and accordingly, we have recorded additional income tax charges in our financial statements for fiscal 2006 to reflect the correct tax treatment of these expenses. See Note 2 to the Consolidated Financial Statements in the annual report on Form 20-F for the fiscal year ended September 30, 2006 for a further discussion. The Company has already reported this issue to the German tax authorities.

	•		During the first half of fiscal 2007, the Company has continued to analyze payments under these and additional BCAs at Com. An analysis of BCAs and related payments at the other Groups will begin. As a result, the Company expects a significant increase in the total amount of BCA payments under review.

	•		During the second quarter of fiscal 2007, the Company commenced an analysis of cash and check payments at Com which may relate to BCAs, and which may also raise concerns under the FCPA and anti-corruption legislation in Germany and other countries. The Company will be analyzing the deductibility for tax purposes of these payments. The Company is also in the process of making internal inquiries regarding similar cash payments at other Groups.

Potential Impact of the Investigations and the Company’s Internal Analyses on Financial Statements

Due to the ongoing status of the Company’s own analyses described above and the investigations, including the extension of the independent investigation to the other Groups, there remain substantial uncertainties. Accordingly, the Company has not recorded, as of March 31, 2007, any change in tax assets and liabilities with respect to the BCAs and other payments under review. Depending on the future results of the analyses and investigations, there is a risk that the Company will have to make changes in tax assets and liabilities in future periods, including by recording additional tax charges in respect of prior periods beyond those reflected in our financial statements for fiscal 2006. Such changes, as well as the further results from the ongoing investigations, could be material.


Siemens AG
Corporate Communications
Media Relations
80312 Munich

Other Risks relating to the Investigations

Siemens currently cannot exclude the possibility that criminal or civil sanctions may be brought against the Company itself or against certain of its employees in connection with possible violations of law, including the FCPA. The Company’s operating activities may also be negatively affected, particularly due to imposed penalties, compensatory damages or the exclusion from public procurement contracts. To date, no charges or provisions for any such penalties or damages have been accrued as management does not yet have enough information to reasonably estimate such amounts. Furthermore, changes affecting the Company’s course of business or its compliance programs may turn out to be necessary.

Cost of External Advisors

The current quarter includes a total of €63 million in expenses for outside advisors engaged by Siemens in connection with the investigations into alleged violations of anti-corruption laws and related matters as well as remediation activities.

Update on Compliance Initiatives

The Company has taken a number of significant steps to improve its compliance procedures and internal controls in response to the allegations of corruption. Among the initiatives the Company has implemented or is in the process of implementing are:

	•		The Managing Board has engaged an external attorney to act as an independent “ombudsman” and to provide a protected communication channel for Siemens employees and third parties.

	•		The Company’s office of corporate compliance has been organizationally embedded in the legal department.

	•		The Company’s audit and compliance departments and an internal task force have been instructed to continue their internal investigation activities and the examination of our compliance and internal control system for gaps and any possibilities of circumvention.

	•		The Company is in the process of enhancing internal controls through centralization of its bank accounts and cash payment systems.

	•		The Company has implemented a moratorium on entering into new BCAs as well as new payments under existing BCAs. Any exceptions require the prior written consent of relevant senior management as well as the written consent of the Company’s chief compliance officer based on a review of the agreements in question.

	•		The Company has launched a formal program of anti-corruption and other legal compliance training for management, group and regional compliance officers and other employees.

The Managing Board and the Audit Committee of Siemens have engaged an independent compliance advisor in order to consult the Managing Board and the Audit Committee with regard to the future structure of the compliance organization, the execution of compliance reviews, the review of related guidelines and controls including potential improvement measures, and the


Siemens AG
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80312 Munich

respective communication and training. The independent compliance advisor provides periodic status reports to the Managing Board and Audit Committee.

AUB

On February 14, 2007, the Company announced that public prosecutors in Nuremberg are conducting an investigation of certain current and former employees of the Company on suspicion of breach of fiduciary duties (Untreue) against Siemens, tax evasion and a violation of the German Works Council Constitution Act. The investigation relates to an agreement entered into by Siemens with an entity controlled by Mr. Wilhelm Schelsky, the former head of the independent employee association AUB (Arbeitsgemeinschaft Unabhängiger Betriebsangehöriger). The prosecutors are investigating payments made during the period 2001 to 2006 for which Siemens may not have received appropriate services in return. Mr. Schelsky was arrested in February 2007. On March 27, 2007, a second search was conducted at the Company’s premises in Munich and an arrest warrant was issued for a member of the Company’s Corporate Executive Committee, in connection with this investigation, who was taken into custody. In addition to the member of the Corporate Executive Committee, other current and former members of the Company’s senior management were named as suspects in this matter. On April 4, 2007, the member of the Corporate Executive Committee posted bail in the amount of €5.0 million and was released from custody. In this connection, a bank issued a bond (Bankbürgschaft) in the amount of €5.0 million, €4.5 million of which was guaranteed by the Company pursuant to provisions of German law. The member of the Corporate Executive Committee has provided the Company a personal undertaking to cooperate with and fully support the independent investigation conducted by Debevoise and to repay all costs incurred and payments made by the Company in connection with the bank guarantee in the event he is found to have violated his obligations to the Company in connection with the facts under investigation by the Nuremberg prosecutors. The investigation into the allegations involving the Company’s relationship with Mr. Schelsky and AUB has also been included within the scope of the investigation being conducted by Debevoise. On April 2, 2007, the labor union IG Metall lodged a criminal complaint against unknown individuals on suspicion that the Company breached the provisions of Section 119 of the Works Council Constitution Act (Betriebsverfassungsgesetz) by providing undue preferential support to AUB in connection with elections of the members of the Company’s works councils.

This document contains forward-looking statements and information — that is, statements related to future, not past, events. These statements may be identified by words as “expects”, “looks forward to”, “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect its operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens worldwide to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from: changes in general economic and business conditions (including margin developments in major business areas); the challenges of integrating major acquisitions and implementing joint ventures and other significant portfolio measures; changes in currency exchange rates and interest rates; introduction of competing products or technologies by other companies; lack of acceptance of new products or services by customers targeted by Siemens worldwide; changes in business strategy; the outcome of pending investigations and legal proceedings; our analysis of the potential impact of such matters on our financial statements; as well as various other factors. More detailed information about our risk factors is contained in Siemens’ 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 may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed sought, estimated or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.


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80312 Munich

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	SIEMENS AKTIENGESELLSCHAFT

Date: April 26, 2007	/s/ Dr. Ralf P. Thomas

	Name:	Dr. Ralf P. Thomas
	Title:	Corporate Vice President and Controller

	/s/ Dr. Klaus Patzak

	Name:	Dr. Klaus Patzak
	Title:	Corporate Vice President
		Financial Reporting and Controlling

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