e6vk
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
November 8 , 2007
Commission File Number: 1-15174
Siemens Aktiengesellschaft
(Translation of registrants 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-
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Press Presse Prensa |
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For the business and financial press
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Munich, November 7, 2007 |
Siemens sets capital structure target and announces a share buyback program for up to 10 billion by 2010
In the framework of its Fit for 2010 program, Siemens has set a target for an optimized capital
structure. It will be measured as the ratio of adjusted industrial net debt to EBITDA. The
capital structure target should be in a target range between 0.8 and 1.0 by 2010. This step
completes Siemens financial target system as defined in the Fit for 2010 program, while
maintaining our traditionally solid financial position. At the same time, we are optimizing our
capital structure on the basis of comprehensive analyses of competitors, said Siemens CFO Joe
Kaeser.
In a move to achieve the target, Siemens simultaneously announced it is launching an extensive
share buyback program. As a result of the strong cash flow from operations and the size of the
expected proceeds from the sale of Siemens VDO, we see potential for optimizing our capital
structure. We therefore foresee a share buyback program with a total volume of up to 10 billion
by 2010. Ultimately, we believe that a more efficient capital structure will strengthen EPS growth
while ensuring cost-effective access to capital as well as strategic flexibility, said Siemens CEO
Peter Löscher.
Through resolution of the Shareholders Meeting of January 25, 2007, Siemens AG is authorized
pursuant to section 71 para.1 no. 8 of the German Stock Corporation Act (Aktiengesetz, AktG) to
acquire own shares up to 10% of the its capital stock until July 24, 2008. Within this
authorization the Managing Board has adopted a share buy back program which has been approved by
the Supervisory Board.
Accordingly this allows to acquire by purchase over the stock exchange up to
a maximum of 82 million shares of Siemens AG for the purpose of cancellation and reduction of
capital stock as well as to buy back up to a maximum of 7 million shares of Siemens AG to fulfill
obligations arising out of stock compensation programs. On the basis of the current share price
this amounts to a volume of approximately EUR 8.5 billion.
Timing and details regarding the start of the share buy back program will be announced separately.
The buy back will be carried out lead-managed by banks and will be executed pursuant to the
Regulation (EC) no. 2273/2003 of the Commission of December 22, 2003.
Siemens intends that the Managing Board and the Supervisory Board will propose at the Shareholders
Meeting to be held on January 24, 2008 to renew the authorization to buy back shares of up to 10 %
of the share capital.
On EBITDA and other definitions please visit www.siemens.com/investorrelations.
Siemens plans to publish its fiscal 2007 figures (based on IFRS) on November 8, 2007, at 7:15 a.m.
(CET). The Annual Press Conference will be held on the same day in Munich, beginning at 10:00 a.m.
(CET). Further information will be available in the live Webcast of the press conference at:
www.siemens.com/pressekonferenz. An analyst conference will follow on November 9, 2007, in
London and can also be seen as a live Webcast at:
www.siemens.com/investorrelations.
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Siemens AG Corporate Communications and Government
Affairs Media Relations 80312 Munich |
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Reference number: AXX200711.8e Constantin
Birnstiel 80312 Munich Tel.: +49 89 636-36669; Fax:
-32825 E-Mail: constantin.birnstiel@siemens.com |
1 / 1
For the business and financial press
Munich, Germany, November 8, 2007
Siemens to raise target margin ranges for Operations
Siemens is raising the target margin ranges for its operating units. Were convinced that the
creation of new structures within the three planned Sectors Energy, Industry and Healthcare will
make our company less complex, more transparent, more focused and, therefore, faster and more
successful. As a result, its also clear well exceed the current goals of our Fit for 2010
program, said Peter Löscher, Siemens CEO. The new target margin ranges for the future Energy and
Industry Sectors will be announced at the end of January 2008. Effective immediately, the target
margin range for the Medical Solutions Group (Med) will be raised to 14-17% from the current
13-15%. In the course of the restructuring, Siemens also intends to reduce selling, general and
administrative costs, as a percentage of sales, 10-20% by 2010.
If approved by the Supervisory Board on November 28, 2007, implementation of the new company
structure will begin in January 2008. External financial reporting on the basis of the new
structure will begin in the second half of fiscal 2008. Financial information will be reported at
the Sector level and below. Were again making our financial reporting considerably more
transparent than it is today, said Löscher.
The Energy Sector will essentially comprise the Groups Power Generation (PG) and Power Transmission
and Distribution (PTD). This Sector will target a highly attractive market, which is growing at 11%
a year. Siemens expects the markets total volume to be well above 300 billion by 2010.
The Industry Sector will comprise the business activities of Automation and Drives (A&D),
Industrial Solutions and Services (I&S), Transportation Systems (TS), Siemens Building Technologies
(SBT) and Osram. Siemens assumes that the Sectors markets will grow 5% a year to reach a total
volume of nearly 500 billion by 2010.
The Healthcare Sector will comprise the Medical Solutions Group (Med). Meds latest acquisitions
have more than doubled its market to 57 billion and enabled the Group to tap attractive new
segments.
Siemens IT Solutions and Services and Siemens Financial Services (SFS) will continue to operate as
cross-sector businesses.
The planned new structure will generate considerable synergy potentials. Were going to precisely
define how staff functions are assigned to the various levels in the new structure, said Peter
Löscher, with reference to the selling, general and administrative costs, which totaled some 17% of
sales in fiscal 2007.
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Siemens AG
Corporate Communications and Government Affairs
Media Relations
80312 München
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Informationsnummer: AXX200711.12 e
Marc Langendorf
80312 München
Tel.: +49 89 636-37035; Fax: -32825
E-Mail: marc.langendorf@siemens.com |
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Key
figures(1)(2)
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Fiscal 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.
(in millions of , except where otherwise stated)
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% change |
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% change |
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Profit
and Growth |
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Q4 |
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Q4 |
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Adjust- |
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FY |
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FY |
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Adjust- |
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2006 |
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2007 |
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Actual |
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ed(3) |
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2006 |
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2007 |
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Actual |
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ed(3) |
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Continuing Operations |
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New Orders |
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17,575 |
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21,328 |
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21 |
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19 |
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74,944 |
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83,916 |
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12 |
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13 |
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Revenue |
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18,471 |
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20,201 |
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9 |
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8 |
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66,487 |
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72,448 |
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9 |
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10 |
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Total Operations Group |
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Group Profit from Operations |
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749 |
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1,990 |
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166 |
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3,867 |
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6,560 |
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70 |
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in % of revenue |
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3.8% |
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9.3% |
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5.5% |
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8.6% |
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EBITDA adjusted |
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1,201 |
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2,596 |
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116 |
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5,367 |
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8,716 |
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62 |
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in % of revenue |
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6.1% |
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12.1% |
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7.6% |
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11.4% |
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Continuing Operations |
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EBITDA adjusted |
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967 |
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2,389 |
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147 |
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5,074 |
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7,686 |
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51 |
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Income from continuing operations |
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139 |
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1,394 |
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>200 |
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2,642 |
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3,909 |
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48 |
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Basic earnings per share (in euros)(5) |
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0.10 |
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1.45 |
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>200 |
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2.78 |
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4.13 |
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49 |
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Continuing and Discontinued
Operations(4) |
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Net Income |
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148 |
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(74) |
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3,345 |
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4,038 |
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21 |
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Basic earnings per share (in euros)(5) |
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0.10 |
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(0.17) |
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3.52 |
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4.24 |
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20 |
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Return
on Capital |
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Q4 |
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Q4 |
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FY |
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FY |
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Employed |
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2006 |
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2007 |
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2006 |
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2007 |
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Continuing Operations |
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Return on capital employed (ROCE) |
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1.9% |
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15.5% |
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9.6% |
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12.7% |
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Continuing and Discontinued
Operations(4) |
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Return on capital employed (ROCE) |
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1.7% |
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(0.7)% |
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10.5% |
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10.9% |
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Free
Cash Flow / |
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Q4 |
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Q4 |
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FY |
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FY |
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Cash
Conversion |
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2006 |
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2007 |
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2006 |
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2007 |
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Total Operations Groups |
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Free Cash Flow |
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1,293 |
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3,149 |
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2,806 |
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7,037 |
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Cash Conversion |
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1.73 |
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1.58 |
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0.73 |
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1.07 |
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Continuing Operations |
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Free Cash Flow |
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963 |
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2,553 |
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1,820 |
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6,755 |
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Cash Conversion |
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6.93 |
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1.83 |
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0.69 |
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1.73 |
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Continuing and Discontinued
Operations(4) |
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Free Cash Flow |
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1,464 |
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2,099 |
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1,607 |
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3,577 |
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Cash Conversion |
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9.89 |
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> 1 |
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0.48 |
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0.89 |
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Net
Debt / Capital Structure |
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FY 2006 |
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FY 2007 |
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Net Debt |
4,487 |
11,299 |
Net Debt / EBITDA adjusted |
0.88 |
1.47 |
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Adjusted industrial net debt |
1,878 |
5,828 |
Adj. industrial net debt / EBITDA
adj. |
0.37 |
0.76 |
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Employees
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September 30, 2006 |
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September 30, 2007 |
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(in
thousands) |
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Cont. Op. |
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Total(6) |
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Cont. Op. |
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Total(6) |
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Employees |
371 |
475 |
398 |
471 |
Germany |
123 |
161 |
126 |
152 |
Outside Germany |
248 |
314 |
272 |
319 |
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(1) |
Preliminary
and unaudited. Prior-year numbers have been adjusted for the
retroactive presentation of Siemens VDO Automotive (SV) in
discontinued operations, income tax charges relating to compliance
matters and an adjustment of Medical Solutions Group profit.
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(2) |
EBITDA adjusted, Return on capital employed, Return on equity, Free cash flow, Cash conversion, Net debt and adjusted industrial net debt are non-GAAP financial measures. A reconciliation of these amounts to the most directly comparable IFRS financial measures is available on our Investor Relations website under www.siemens.com/ir, Financial
Publications, Quarterly Reports. Group profit from
operations is reconciled to income before income taxes of Operations under Reconciliation to financial statements in the table Segment Information. |
(3) |
Adjusted for portfolio and currency translation effects. |
(4) |
Discontinued
operations consist of SV activities as well as of carrier networks, enterprise networks and mobile devices activities. |
(5) |
Earnings per share attributable to shareholders of Siemens AG. |
(6) |
Continuing and discontinued operations. |
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Earnings Release
Munich, November 8, 2007 |
Strong Growth, Higher Margins
Operations delivers nearly 2 billion in Q4 Group profit
Continuing operations generate EPS of 1.45 in Q4
Siemens in the Fourth Quarter of Fiscal 2007
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Group profit from Operations was 1.990 billion, driven up sharply year-over-year by
rising profits and earnings margins at all Groups. |
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Income from continuing operations also climbed significantly, to 1.394 billion. EPS from
continuing operations was 1.45 compared to 0.10 a year earlier. |
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Net income was a negative 74 million due to non-operating items in discontinued
operations, including approximately 1.0 billion in tax expense related to the carve-out of
Siemens VDO Automotive. EPS was a negative 0.17 compared to a positive 0.10 a year
earlier. |
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Siemens continued to grow more than twice as fast as global GDP. Revenue was up 9%
compared to the prior-year quarter, at 20.201 billion, and orders climbed 21%, to 21.328
billion. |
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Free cash flow rose to 2.553 billion for the quarter, on higher income from continuing
operations and a substantial improvement in net working capital year-over-year. |
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Siemens announced plans for a 10 billion share repurchase program, and proposed a
dividend for fiscal 2007 of 1.60 per share compared to 1.45 per share in the prior year.
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The fourth quarter demonstrates
the kind of quality growth Siemens can generate, said Siemens
CEO Peter Löscher. We expanded
our business in all regions of the world, and all our operating Groups reached their Fit 4 2010
target margin ranges. This success in turn produced a strong increase in free cash flow. Net
income was significantly impacted by tax expense related to the carve-out of Siemens VDO
Automotive.
At the corporate level, one of our
plans for the year ahead is to make our balance sheet more efficient. We are therefore announcing
a capital structure target ratio based on net industrial debt and EBITDA. To meet this midterm
target, we are taking advantage of our strong cash position to return value to shareholders
through a share buyback program, which we will conduct over the next three years up to a total
of approximately 10 billion. Ultimately, we believe that a more efficient capital structure
will strengthen EPS growth while ensuring cost-effective access to capital as well as strategic
flexibility.
Operationally, we expect more quality
growth in fiscal 2008. Specifically, we anticipate volume growth that is twice as high as the rate
of global GDP growth, and that our operating profit will grow at least twice as fast as our volume.
Siemens remains very well positioned in dynamic world markets for solutions in industry, energy,
and healthcare.
1 / 14
Income and Group Profit
Group profit from Operations climbed on higher profitability and rising revenue. With increased
operating leverage from improved cost structures and successful acquisitions in recent quarters,
the Groups in Operations benefited substantially from higher revenue worldwide. The result was
1.990 billion in Group profit, compared to 749 million in the fourth quarter a year earlier. All
nine Groups within Operations posted significantly higher Group profit and profit margins
year-over-year.
Income from continuing operations was up strongly year-over-year. Substantially higher Group profit
from operations resulted in a strong increase in income from continuing operations, which climbed
to 1.394 billion from 139 million in the prior-year period. Earnings per share (EPS) from
continuing operations rose to 1.45 compared to 0.10 a year earlier. Financing & Real Estate and
Corporate Treasury generated 119 million in income before income tax in the quarter, compared to
129 million in the prior-year period.
Net income was adversely affected by non-operating items in discontinued operations. Discontinued
operations reduced net income by 1.468 billion in the fourth quarter, in large part because of the
inclusion of Siemens VDO Automotive (SV) pending the close of its sale to Continental AG. Siemens
recorded approximately 1.0 billion in tax expense associated with the SV carve-out. Other non-operating effects in discontinued operations include a penalty of 201 million
imposed by German authorities in ending their investigation of past
misconduct at the former Communications Group (Com). As a result, net income was a negative 74 million for the quarter
compared to a positive 148 million in the prior-year period. Basic and diluted EPS for the current
period were (0.17) and (0.19), respectively. A year earlier, both basic and diluted EPS in the
fourth quarter were 0.10.
Orders and Revenue
Siemens delivered strong organic growth with excellent regional balance. With significant
operations in all major regions and countries of the world, Siemens benefited strongly from
favorable macroeconomic conditions in the fourth quarter. Revenue rose 9% compared to the
prior-year period, to 20.201 billion, and orders climbed 21%, to 21.328 billion. On an organic
basis, excluding the net effect of currency translation and portfolio transactions, revenue rose 8%
year-over-year and orders climbed 19%. Growth in the Asia-Pacific region remained robust, with
revenue up 19% and orders up 62%. Europe (including Germany) also had a strong quarter, with 7%
growth in revenue and 26% growth in orders. The region comprised of Africa, the Near and Middle
East and the Commonwealth of Independent States (C.I.S.) posted 19% revenue growth and accounted for
nearly 10% of Siemens revenue in the fourth quarter. These above-mentioned regions more than made
up for slower growth in the Americas, where market conditions in the U.S. changed significantly
compared to the prior-year quarter. Revenue and orders in the Americas each grew 6% year-over-year
despite strong adverse currency effects, partly offset by new revenue from acquisitions between the
periods under review.
Cash and Return on Capital Employed (ROCE)
The cash conversion rate for the quarter was well above target. Free cash flow from continuing
operations for the fourth quarter was 2.553 billion, up from 963 million in the same quarter a
year earlier. This increase was driven by substantially higher income from continuing operations
compared to the prior-year period, as well as higher cash inflows resulting from net working
capital. The resulting cash conversion rate for the quarter was 1.83, well above the target rate of
0.92.
ROCE for fiscal 2007 was 12.7%. A year earlier, Siemens ROCE was 9.6%. ROCE development in fiscal
2008 will be affected by a substantial increase in capital employed, stemming from major
acquisitions completed or announced in fiscal 2007. Siemens medium-term target for ROCE remains
14-16%.
2 / 14
Legal and regulatory matters in the fourth quarter
The Munich district court imposed a fine of 201 million on Siemens, marking the end of the
investigation at Com by the Munich Office of Public Prosecution insofar as it relates to Siemens
AG. Siemens recorded the fine in the fourth quarter of fiscal 2007. In addition Siemens reached a
final settlement with German tax authorities regarding questionable payments made under Business
Consulting Agreements (BCAs), under other agreements with third-party intermediaries, and to other
parties in fiscal years 2000-2006. A total of 449 million in questionable payments at Com have
been determined to be non-deductible, resulting in a tax charge of 179 million. Siemens previously
recorded 168 million for tax charges in its consolidated financial statements for fiscal 2006,
corresponding to non-deductible payments of 417 million.
During the fourth quarter of fiscal 2007, Siemens substantially completed its analysis of the tax
deductibility of questionable payments at Groups other than Com and in regional companies, also for
fiscal years 2000-2006. This analysis identified in fiscal 2007 an additional 857 million in
non-tax-deductible payments. Accordingly, Siemens recorded additional income tax expense of 339
million and adjusted corresponding amounts in prior periods in the consolidated financial statements for fiscal 2007. The majority of the tax total relates to
payments prior to fiscal 2005, which reduces shareholders equity as of October 1, 2004. There is
no impact from these tax charges on Siemens income statement
for fiscal 2007.
Taking continuing operations and discontinued operations together, expenses for outside advisors
engaged by Siemens in connection with investigations into alleged violations of anti-corruption
laws and related matters as well as remediation activities amounted to 159 million in the fourth
quarter and
347 million in fiscal 2007. More detailed information regarding compliance matters is provided in the document Legal
Proceedings.
Operations in fiscal 2007
Automation and Drives (A&D): Robust Global Growth and Operating Leverage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter ended September 30, |
|
|
Fiscal year ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
%
Change |
|
|
|
|
|
|
|
|
|
|
%
Change |
|
(
in millions) |
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted* |
|
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
607 |
|
|
|
427 |
|
|
|
42 |
% |
|
|
|
|
|
|
2,090 |
|
|
|
1,575 |
|
|
|
33 |
% |
|
|
|
|
Group profit margin |
|
|
13.8 |
% |
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
13.6 |
% |
|
|
12.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
4,403 |
|
|
|
3,609 |
|
|
|
22 |
% |
|
|
16 |
% |
|
|
15,389 |
|
|
|
13,041 |
|
|
|
18 |
% |
|
|
16 |
% |
New orders |
|
|
4,351 |
|
|
|
3,520 |
|
|
|
24 |
% |
|
|
18 |
% |
|
|
16,794 |
|
|
|
14,312 |
|
|
|
17 |
% |
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (1)% on revenue and orders, and portfolio effects of 7% on revenue and orders. |
|
** |
|
Excluding currency translation effects of (2)% on revenue and orders, and portfolio effects of 4% and 3% on revenue and orders, respectively. |
A&D completed an excellent year with an outstanding fourth quarter. Group profit for the final
three months jumped 42% compared to the prior-year quarter, to 607 million. The Large Drives,
Mechanical Drives and Motion Control Systems divisions all demonstrated strong operating leverage
with expanded revenue, resulting in significantly increased earnings. Purchase price accounting
(PPA) effects associated with the Groups acquisitions of UGS Corp. (in May 2007) and Flender
Holding GmbH (in fiscal 2005) sliced 63 million from Group profit, and A&D posted an additional
12 million in integration costs. These negative impacts together took 170 basis points from Group
profit margin for the quarter. Revenue for A&D overall reached a new quarterly high, at 4.403
billion. Orders rose even faster, climbing 24% to 4.351 billion. A&D generated its topline growth
on a worldwide basis. Revenue rose 32% in Asia-Pacific, 26% in Germany, 20% in Europe outside
Germany and 16% in the Americas. These results include new volume from UGS, a leading provider of
product lifecycle management (PLM) software which A&D acquired to complement and extend its
existing software capabilities.
3 / 14
This business got off to a good start within A&D, launching its technology integration and winning
new customers for the Group.
On a full-year basis, A&D increased its Group profit 33%, to 2.090 billion. The Group gained
operating leverage on rising volume, and profitability increased year-over-year even though 143
million in PPA effects and 23 million in integration costs clipped 110 basis points from Group
profit margin. Revenue for fiscal 2007 climbed 18% to 15.389 billion, and orders rose 17% to
16.794 billion. Topline growth was geographically broad-based and benefited from the UGS
acquisition.
Industrial Solutions and Services (I&S): Groupwide Increase in Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter ended September 30, |
|
|
Fiscal year ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
(
in millions) |
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted* |
|
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
130 |
|
|
|
61 |
|
|
|
113 |
% |
|
|
|
|
|
|
415 |
|
|
|
282 |
|
|
|
47 |
% |
|
|
|
|
Group profit margin |
|
|
5.2 |
% |
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
|
|
4.7 |
% |
|
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
2,500 |
|
|
|
2,477 |
|
|
|
1 |
% |
|
|
2 |
% |
|
|
8,894 |
|
|
|
8,819 |
|
|
|
1 |
% |
|
|
3 |
% |
New orders |
|
|
2,168 |
|
|
|
2,129 |
|
|
|
2 |
% |
|
|
3 |
% |
|
|
10,161 |
|
|
|
9,025 |
|
|
|
13 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (2)% on revenue and orders, and portfolio effects of 1% on revenue and orders. |
|
** |
|
Excluding currency translation effects of (3)% on revenue and orders, and portfolio effects of 1% on revenue and orders. |
I&S closed fiscal 2007 with its strongest quarter of the year, more than doubling Group profit
to 130 million. Earnings and profitability improved in all divisions compared to the prior-year
quarter, most notably in the industrial services, water, and oil and gas businesses. As a result,
the Group added 270 basis points to its quarterly Group profit margin. Industry-wide resource
constraints and lower revenue in the postal automation business held back topline growth, as
revenue rose to 2.500 billion and orders increased to 2.168 billion.
Full-year results for I&S showed similar trends, including sharply higher Group profit on
restrained growth in revenue. Group profit climbed to 415 million, a 47% increase year-over-year,
and both earnings and margins improved throughout the Group. Revenue for I&S overall was up 1%
year-over-year, at 8.894 billion. Strong demand in the Americas and Asia-Pacific helped take
orders up 13%, to 10.161 billion, for a book-to-bill ratio of 1.14 for the full fiscal year.
Siemens Building Technologies (SBT): Profiting From Higher-Margin Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter ended September 30, |
|
|
Fiscal year ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
(
in millions) |
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted* |
|
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
102 |
|
|
|
77 |
|
|
|
32 |
% |
|
|
|
|
|
|
354 |
|
|
|
223 |
|
|
|
59 |
% |
|
|
|
|
Group profit margin |
|
|
7.5 |
% |
|
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
7.0 |
% |
|
|
4.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
1,353 |
|
|
|
1,403 |
|
|
|
(4 |
)% |
|
|
(1 |
)% |
|
|
5,062 |
|
|
|
4,796 |
|
|
|
6 |
% |
|
|
8 |
% |
New orders |
|
|
1,331 |
|
|
|
1,402 |
|
|
|
(5 |
)% |
|
|
(2 |
)% |
|
|
5,350 |
|
|
|
5,235 |
|
|
|
2 |
% |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (3)% on revenue and orders. |
|
** |
|
Excluding currency translation effects of (3)% and (4)% on revenue and orders, respectively, and portfolio effects of 1% on revenue and orders. |
SBT delivered its highest quarterly Group profit of the year in the fourth quarter, at 102
million, and also added more than 200 basis points to Group profit margin compared to the
prior-year period. These results demonstrate the Groups focus on reducing costs, improving execution and winning higher-margin business.
4 / 14
This
trend was most evident in SBTs building automation business, which more than doubled profitability
compared to the same quarter a year earlier. For SBT as a whole, more selective order intake was
evident in revenue of 1.353 billion, a modest decline compared to the prior-year quarter. Orders
of 1.331 billion came in 5% below the fourth quarter a year ago. Key factors in this result
included adverse currency translation effects and a slowdown in the
U.S., which pulled U.S. orders down 15% year-over-year.
SBTs progress was even more substantial on a full-year basis, with Group profit jumping 59%
year-over-year, to 354 million. Earnings and margins rose on a Groupwide basis, building a 240
basis point increase in Group profit margin. The Groups fire safety and heating, ventilation and
air conditioning businesses made the largest contributions to Group Profit. Revenue rose 6%
year-over-year, to 5.062 billion, and orders of 5.350 billion came in 2% higher than the prior
period.
Osram: Sustained Growth and Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter ended September 30, |
|
|
Fiscal year ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
(
in millions) |
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted* |
|
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
128 |
|
|
|
86 |
|
|
|
49 |
% |
|
|
|
|
|
|
492 |
|
|
|
456 |
|
|
|
8 |
% |
|
|
|
|
Group profit margin |
|
|
10.6 |
% |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
10.5 |
% |
|
|
10.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
1,203 |
|
|
|
1,110 |
|
|
|
8 |
% |
|
|
12 |
% |
|
|
4,690 |
|
|
|
4,563 |
|
|
|
3 |
% |
|
|
7 |
% |
New orders |
|
|
1,203 |
|
|
|
1,110 |
|
|
|
8 |
% |
|
|
12 |
% |
|
|
4,690 |
|
|
|
4,563 |
|
|
|
3 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (4)% on revenue and orders. |
|
** |
|
Excluding currency translation effects of (4)% on revenue and orders. |
Osram posted Group profit of 128 million in the fourth quarter of fiscal 2007, with
broad-based increases in earnings and margins. Group profit in the prior year included higher
severance charges. Revenue and orders rose 8% to 1.203 billion for the quarter, including high
demand for energy-efficient lighting solutions.
For the full year, Osrams Group profit rose 8% to 492 million. Along with strength in general
lighting, Osram also benefited from higher earnings in its optical semiconductors business.
Broad-based demand throughout the Group took revenue and orders up to 4.690 billion for the fiscal
year. Excluding negative currency translation effects, revenue and orders grew 7% compared to the
prior year.
Transportation Systems (TS): Improved Earnings and Margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter ended September 30, |
|
|
Fiscal year ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
(
in millions) |
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted* |
|
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
62 |
|
|
|
19 |
|
|
|
226 |
% |
|
|
|
|
|
|
191 |
|
|
|
72 |
|
|
|
165 |
% |
|
|
|
|
Group profit margin |
|
|
5.1 |
% |
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
4.3 |
% |
|
|
1.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
1,212 |
|
|
|
1,446 |
|
|
|
(16 |
)% |
|
|
(12 |
)% |
|
|
4,452 |
|
|
|
4,493 |
|
|
|
(1 |
)% |
|
|
2 |
% |
New orders |
|
|
2,189 |
|
|
|
743 |
|
|
|
195 |
% |
|
|
202 |
% |
|
|
4,780 |
|
|
|
6,173 |
|
|
|
(23 |
)% |
|
|
(20 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (1)% on revenue and orders, and portfolio effects of (3)% and (6)% on revenue and orders, respectively. |
|
** |
|
Excluding currency translation effects of (1)% on revenue and orders, and portfolio effects of (2)% on revenue and orders. |
Group profit at TS in the fourth quarter rose to 62 million on broad-based increases in
earnings and margins led by the Rail Automation division. Revenue of 1.212 billion came in below
the level of the prior-year period.
5 / 14
Fourth-quarter orders of 2.189 billion were nearly triple the level of the same period a year ago,
driven by major contract wins in Austria, The Netherlands, the U.K., and China.
For the full year, Group profit of 191 million at TS benefited from a net gain of 76 million on
the sale of the Groups locomotive leasing business. Earnings and margins rose on a Group-wide
basis except for the mass transit business, which took charges related to its Combino railcar and
posted a larger loss than in the prior year. Revenue of 4.452 billion came close to the prior-year
level despite a decline in revenue in the mass transit business. Orders of 4.780 billion reflect a
significantly lower level of large orders for the Group as a whole in the second and third
quarters.
Power Generation (PG): Margin Improvement in High-Growth Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter ended September 30, |
|
|
Fiscal year ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
(
in millions) |
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted* |
|
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
358 |
|
|
|
122 |
|
|
|
193 |
% |
|
|
|
|
|
|
1,147 |
|
|
|
779 |
|
|
|
47 |
% |
|
|
|
|
Group profit margin |
|
|
10.1 |
% |
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
9.4 |
% |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
3,533 |
|
|
|
2,924 |
|
|
|
21 |
% |
|
|
21 |
% |
|
|
12,194 |
|
|
|
10,086 |
|
|
|
21 |
% |
|
|
20 |
% |
New orders |
|
|
4,012 |
|
|
|
2,738 |
|
|
|
47 |
% |
|
|
46 |
% |
|
|
17,988 |
|
|
|
12,532 |
|
|
|
44 |
% |
|
|
43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (3)% and (2)% on revenue and orders, respectively, and portfolio effects of 3% on revenue and orders. |
|
** |
|
Excluding currency translation effects of (3)% on revenue and orders, and portfolio effects of 4% on revenue and orders. |
PG combined increased profitability with strong revenue growth to generate 358 million in
fourth-quarter Group profit, well above the prior-year period. PGs fossil power generation, fossil
services, industrial and wind businesses all contributed significantly higher earnings
year-over-year. Both periods under review included charges at major projects and negative equity
investment income. With significant offsetting effects in the current quarter, Group profit margin
was representative of PGs underlying performance. In contrast, Group profit margin in the
prior-year quarter lost more than 500 basis points due to the factors mentioned above. Equity
investment income related to Areva was a negative 37 million compared to a negative 52 million in
the prior-year quarter. Demand for PGs power generation solutions was evident in revenue of 3.533
billion, 21% higher than in the prior-year quarter, and orders of 4.012 billion, up 47%. The
fossil, wind and industrial businesses all contributed strong growth and major contract wins,
including fuel-efficient combined-cycle power plants in Europe and Asia-Pacific and large wind
power projects in Europe, Asia-Pacific and the U.S. PG expects continued volatility in equity
investment earnings in coming quarters.
For the full fiscal year, Group profit at PG climbed 47%, to 1.147 billion. All businesses in PGs
portfolio generated strong growth in earnings and profitability, including a significant rise in
earnings in the fossil services business and a sharply higher 9.5% margin in the wind power
business, where earnings more than doubled. Charges at major projects, negative equity investment
income and offsetting effects took 60 net basis points from Group profit margin in fiscal 2007,
compared to 230 net basis points a year earlier. Equity investment income related to Areva was a
negative 45 million in fiscal 2007 compared to a negative 27 in the prior year. Demand was
well-balanced both regionally and among PGs divisions. Fiscal 2007 revenue rose to 12.194
billion, 21% higher than in the prior fiscal year, and orders surged 44%, to 17.988 billion. These
fiscal 2007 contract wins are expected to increase the earnings quality of PGs order backlog as
older, lower-margin orders are converted to revenue in coming quarters.
6 / 14
Power Transmission and Distribution (PTD): Maintaining Momentum in Growth and Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter ended September 30, |
|
|
Fiscal year ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
(
in millions) |
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted* |
|
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
225 |
|
|
|
54 |
|
|
|
317 |
% |
|
|
|
|
|
|
650 |
|
|
|
315 |
|
|
|
106 |
% |
|
|
|
|
Group profit margin |
|
|
9.9 |
% |
|
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
8.5 |
% |
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
2,283 |
|
|
|
1,839 |
|
|
|
24 |
% |
|
|
25 |
% |
|
|
7,689 |
|
|
|
6,509 |
|
|
|
18 |
% |
|
|
21 |
% |
New orders |
|
|
1,882 |
|
|
|
1,683 |
|
|
|
12 |
% |
|
|
14 |
% |
|
|
9,896 |
|
|
|
8,028 |
|
|
|
23 |
% |
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (1)% and (2)% on revenue and orders, respectively. |
|
** |
|
Excluding currency translation effects of (3)% and (4)% on revenue and orders, respectively. |
PTD completed a year of continuous earnings improvement with Group profit of 225 million for
the fourth quarter. Group profit margin benefited from 25 million in hedging effects not
qualifying for hedge accounting. For comparison, the prior-year
result included restructuring charges.
Higher revenue enabled all divisions within PTD to increase their earnings, and the Group achieved
its best quarterly Group profit margin of the year. In a strong global market for secure,
high-efficiency power transmission and distribution, PTD delivered revenue of 2.283 billion, up
24% from the prior-year quarter. Orders for the quarter rose 12% above the prior-year level, to
1.882 billion, including a major order in the U.S.
PTDs full-year results follow the same trends as in the fourth quarter. Group profit more than
doubled, to 650 million, on improving margins and higher revenue. Revenue rose 18% year-over-year,
to 7.689 billion, while orders climbed 23%, to 9.896 billion. Among numerous major orders were
large new contracts in the Middle East and China, taking PTDs full-year book-to-bill ratio up to
1.29.
Medical Solutions (Med): Strong Profit Growth From An Integrated Diagnostics Supplier
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter ended September 30, |
|
|
Fiscal year ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
(
in millions) |
|
2007 |
|
|
2006* |
|
|
Actual |
|
|
Adjusted** |
|
|
2007 |
|
|
2006* |
|
|
Actual |
|
|
Adjusted*** |
|
Group profit |
|
|
380 |
|
|
|
266 |
|
|
|
43 |
% |
|
|
|
|
|
|
1,323 |
|
|
|
988 |
|
|
|
34 |
% |
|
|
|
|
Group profit margin |
|
|
13.3 |
% |
|
|
11.3 |
% |
|
|
|
|
|
|
|
|
|
|
13.4 |
% |
|
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
2,848 |
|
|
|
2,359 |
|
|
|
21 |
% |
|
|
6 |
% |
|
|
9,851 |
|
|
|
8,227 |
|
|
|
20 |
% |
|
|
6 |
% |
New orders |
|
|
2,999 |
|
|
|
2,994 |
|
|
|
0 |
% |
|
|
(11 |
)% |
|
|
10,271 |
|
|
|
9,334 |
|
|
|
10 |
% |
|
|
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Group profit has been adjusted. For further information see the document Legal Proceedings. |
|
** |
|
Excluding currency translation effects of (4)% on revenue and orders, and portfolio effects of 19% and 15% on revenue and orders, respectively. |
|
*** |
|
Excluding currency translation effects of (5)% on revenue and orders, and portfolio effects of 19% and 17% on revenue and orders, respectively. |
Group profit at Med in the fourth quarter jumped 43% compared to the prior-year quarter, to
380 million, and Group profit margin for the quarter rose to 13.3%. These results demonstrate the
competitive strength and international success of Meds diagnostics imaging businesses, which
increased their profitability compared to the prior-year period despite continuing market pressure
in the U.S., including effects from the U.S. Deficit Reduction Act (DRA). This enabled Med to more
than offset the loss of 270 basis points from Group profit margin due to PPA effects of 21 million
and integration costs of 55 million stemming from two major acquisitions. The companies acquired,
Diagnostic Products Corp. (late in fiscal 2006) and a division of Bayer AG (in the second quarter
of fiscal 2007), have been combined into Meds new Diagnostics division for in-vitro diagnostic
solutions. Revenue for the fourth quarter rose 21%, year-over-year,
to 2.848 billion, including substantial new volume from the Diagnostics division.
7 / 14
Orders were level at 2.999 billion, as Med
compensated for the tightening in the U.S. imaging market with its Diagnostics division and growth
in other regions. The Groups acquisition of Dade-Behring Holdings, Inc. closed on November 6,
2007, and will result in further integration costs in coming quarters.
Meds results for the full year showed similar development as in the fourth quarter. Group profit
climbed 34%, to 1.323 billion, primarily due to higher earnings and profit margins in the
diagnostics imaging businesses. Equity investment income in the
current year benefited from a 23 million gain on the sale of a portion of Meds stake in a joint venture, Draeger Medical AG &
Co. KG, and rose to 60 million for the year compared to 27 million a year earlier. These factors
partly offset PPA effects of 91 million and integration costs from acquisitions of 84 million,
which took 180 basis points from Group profit margin. Revenue of 9.851 billion and orders of
10.271 billion were up 20% and 10%, respectively, primarily as a result of the acquisitions in
in-vitro diagnostics.
Siemens IT Solutions and Services (SIS): Solid Improvement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter ended September 30, |
|
|
Fiscal year ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
(
in millions) |
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted* |
|
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
80 |
|
|
|
(230 |
) |
|
|
|
|
|
|
|
|
|
|
252 |
|
|
|
(731 |
) |
|
|
|
|
|
|
|
|
Group profit margin |
|
|
5.6 |
% |
|
|
(16.2 |
)% |
|
|
|
|
|
|
|
|
|
|
4.7 |
% |
|
|
(12.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
1,438 |
|
|
|
1,424 |
|
|
|
1 |
% |
|
|
2 |
% |
|
|
5,360 |
|
|
|
5,693 |
|
|
|
(6 |
)% |
|
|
5 |
% |
New orders |
|
|
1,595 |
|
|
|
1,266 |
|
|
|
26 |
% |
|
|
27 |
% |
|
|
5,156 |
|
|
|
5,574 |
|
|
|
(7 |
)% |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding portfolio effects of (1)% on revenue and orders. |
|
** |
|
Excluding currency translation effects of (1)% on revenue and orders, and portfolio effects of (10)% and (11)% on revenue and orders,
respectively. |
SIS posted 80 million in Group profit and a Group profit margin of 5.6% in the fourth
quarter, benefiting from an improved cost structure following 180 million in severance charges in
the prior-year period. Revenue rose modestly compared to the prior-year quarter, to 1.438 billion.
Orders jumped 26%, to 1.595 billion on strong growth in Europe.
Fiscal 2007 was the first year of operation for SIS, which combines the former Siemens Business
Services (SBS) Group with other strategic IT activities within Siemens. Results for SIS are stated
on a retroactive basis, to provide a meaningful comparison with prior periods. Group profit for the
fiscal year was 252 million, while in the prior year 576 million in severance charges contributed
to a substantial loss. Revenue and orders of 5.360 billion and 5.156 billion, respectively, came
in lower than the prior-year totals due to the divestment of the Groups Product Related Services
(PRS) business halfway through fiscal 2006. On an organic basis, sales and orders were up 5%
year-over-year.
Strategic Equity Investments (SEI)
SEI includes results at equity from three companies in which Siemens holds a strategic equity
stake: Nokia Siemens Networks B.V. (NSN), BSH Bosch und Siemens Hausgeräte GmbH (BSH), and Fujitsu
Siemens Computers (Holding) B.V. (FSC). SEI posted a loss of 11 million in the fourth quarter
compared to a 75 million gain in the same period a year earlier. The change year-over-year was due
largely to NSN, which became part of SEI results following its formation in the third quarter.
Restructuring and integration programs resulted in 86 million in charges at NSN in the fourth
quarter. As a result, Siemens incurred an equity investment loss of 58 million related to NSN.
For the full year, SEI overall recorded an equity investment loss of 161 million despite a
positive 268 million from BSH and FHC. In the prior year, which does not include NSN, SEI posted
equity investment income of
225 million.
8 / 14
In the current year, NSN took 991 million in charges including 646 million for
severance. As a result, Siemens equity investment income related to NSN was a negative 429
million in fiscal 2007.
Other Operations
Other Operations consist of centrally held operating businesses not related to a Group, including
Siemens Home and Office Communication Devices (SHC) and, in fiscal 2006, the distribution and
industry logistics (Dematic) businesses carved out of the former Logistics and Assembly Systems
Group. The result of Other Operations in the fourth quarter was a negative 71 million compared to
a negative 208 million in the same period a year earlier. SHC took a small loss in the current
quarter, while the prior-year quarter includes a more significant operating loss at Dematic plus a
loss on the sale of the Dematic businesses. Other Operations also includes centrally carried
regional costs not allocated to the Groups, totaling 45 million in the current quarter compared to
63 million in the prior-year period. Revenue for Other Operations declined to 663 million for the
quarter from 1.012 billion in the prior-year period, due primarily to the divestment.
Results for fiscal 2007 followed a similar pattern. Other Operations improved to a negative 193
million compared to a negative 317 million in fiscal 2006. SHC contributed 13 million in profit
for the year, while the Dematic business posted a loss of 159 million a year earlier. Centrally
carried regional costs not allocated to the Groups totaled 96 million in the current period, up
from 59 million in the prior year. In addition, fiscal 2007 included an impairment of 52 million
at a regional payphone company in Europe. Revenue for Other Operations for the full year was 2.884
billion, down from 3.944 billion primarily due to the Dematic divestment. Within these totals,
sales at SHC remained stable near 790 million.
Corporate items, pensions and eliminations
Corporate items, pension and elimination totaled a negative 451 million in the fourth quarter,
compared to a negative 493 million in the prior-year quarter. This improvement was due to
centrally carried pension expense, which was a positive 39 million compared to a negative 45
million in the same quarter a year earlier. Corporate items increased year-over-year to a negative
484 million compared to a negative 462 million in the prior-year period. This change includes 85
million in the current quarter for outside advisors related to legal and regulatory matters
mentioned above, as well as 108 million related to Siemens regional sales organization in
Germany, primarily including an impairment.
For the full year, Corporate items, pensions and eliminations was a negative 1.672 billion
compared to a negative 527 million in the prior year. Corporate items was the primary factor in
the change year-over-year, increasing to a negative 1.728 billion from a negative 553 million in
fiscal 2006. Costs related to major legal and regulatory matters totaled 843 million in the
current period. Within this figure, major impacts included 440 million stemming from sanctions on
major suppliers of gas-isolated switchgear, 152 million in expenses related to compliance
mentioned earlier, and 81 million in funding primarily for job placement companies for former
Siemens employees affected by the bankruptcy of BenQ Mobile GmbH & Co. OHG (BenQ). Corporate items
also included higher expenses related to a major asset retirement obligation. Finally, the full
year also includes the 108 million mentioned above for the fourth quarter. A year earlier,
Corporate items benefited from a 95 million gain on the sale of an investment, as well as 70
million in positive effects from settlement of an arbitration proceeding.
Financing and Real Estate
Siemens Financial Services (SFS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter ended September 30, |
|
|
Fiscal year ended September 30, |
|
(
in millions) |
|
2007 |
|
|
2006 |
|
|
%
Change |
|
|
2007 |
|
|
2006 |
|
|
%
Change |
|
Income before
income taxes |
|
|
52 |
|
|
|
120 |
|
|
|
(57 |
)% |
|
|
329 |
|
|
|
306 |
|
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,912 |
|
|
|
10,543 |
|
|
|
(15 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 / 14
Income before income taxes (IBIT) at SFS was 52 million compared to 120 million in the fourth
quarter a year earlier. The prior-year quarter benefited strongly from a special dividend related
to an investment in the Equity division. On a full-year basis, IBIT rose to 329 million from 306
million in fiscal 2006, including gains on sales of shares in the Equity division and special
dividends resulting from divestment gains by a company in which SFS holds an equity position. IBIT
in the prior period included the special dividend mentioned above. Total assets declined compared
to the end of fiscal 2006, due to a significant reduction in accounts receivable related to the
carve-out of SV and the transfer of carrier activities into NSN.
Siemens Real Estate (SRE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter ended September 30, |
|
|
Fiscal year ended September 30, |
|
(
in millions) |
|
2007 |
|
|
2006 |
|
|
% Change |
|
|
2007 |
|
|
2006 |
|
|
% Change |
|
Income before
income taxes |
|
|
48 |
|
|
|
13 |
|
|
|
269 |
% |
|
|
228 |
|
|
|
115 |
|
|
|
98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
435 |
|
|
|
446 |
|
|
|
(2 |
)% |
|
|
1,686 |
|
|
|
1,705 |
|
|
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,091 |
|
|
|
3,221 |
|
|
|
(4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes at SRE was 48 million in the fourth quarter, which benefited from
higher gains on sales of real estate. Income before income taxes for the full year was 228
million, compared to 115 million in the prior year. A year earlier, SREs results included
significantly higher vacancy charges and a lower level of real estate disposals.
Eliminations, reclassifications and Corporate Treasury
Income before income taxes from eliminations, reclassifications and Corporate Treasury was 19
million in the fourth quarter, compared to a negative 4 million in the prior-year period. The
current quarter included beneficial effects at Corporate Treasury from Siemenss repurchase of
outstanding notes from a 2.5 billion convertible bond issued in June 2003. On a full-year basis,
IBIT from eliminations, reclassifications and Corporate Treasury was 153 million compared to a
negative 18 million in fiscal 2006. The difference is due mainly to negative net effects in the
prior year from a mark-to-market valuation of a cash settlement option associated with the
convertible bond.
Income and earnings per share in fiscal 2007
Net income for Siemens in fiscal 2007 was 4.038 billion, a 21% increase compared to 3.345 billion
in the same period a year earlier. Basic and diluted EPS were 4.24 and 4.10, respectively,
compared to 3.52 and 3.51, respectively, in fiscal 2006. Net income in fiscal 2007 rose even as
income from discontinued operations fell to 129 million from 703 million in fiscal 2006. More
detail on discontinued operations is included below. Income from continuing operations for the year
was 3.909 billion, 48% higher than 2.642 billion in fiscal 2006. Basic and diluted EPS on a
continuing basis were 4.13 and 3.99, respectively, compared to 2.78 and 2.77 a year earlier.
Strong operating performance was the primary driver of higher income from continuing operations.
Group profit from Operations rose 70% year-over-year to 6.560 billion, even with negative equity
investment income of 429 million related to NSN. All Groups in Operations increased their Group
profit and Group profit margin on a full-year basis. SIS benefited strongly from severance programs
totaling 576 million in fiscal 2006, recording Group profit of 252 million for the year compared
to a loss of 731 million in the prior year.
Rapid growth in Group profit more than offset a significant increase in Corporate items, pensions
and eliminations year-over-year, which rose from a negative 527 in fiscal 2006 to a negative
1.672 billion in the current year. The change was due primarily to the 843 million in costs for
major legal and regulatory matters mentioned above in Corporate items.
10 / 14
Earnings at Financing and Real Estate rose to 557 million for fiscal 2007, from 421 million a
year earlier. Corporate Treasury activities contributed earnings of 153 million compared to a loss
of 18 million in the same period a year earlier, which includes a 143 million net negative effect
related to a cash settlement option related to the 2.5 billion convertible bond.
Discontinued Operations in the fourth quarter and fiscal 2007
Discontinued operations include Com activities that remained within Siemens after the transfer of
carrier assets into NSN at the beginning of the third quarter, and also the operations of SV, which
is held for disposal pending the closing of its sale to Continental. SV is included within
discontinued operations on a retroactive basis, to provide a meaningful comparison with prior
periods.
In the fourth quarter, discontinued operations reduced net income by 1.468 billion compared to a
contribution to net income of 9 million in the same quarter a year earlier. The difference is due
primarily to SV, which had approximately 1.0 billion in tax expense related to its carve-out. This
led to a negative result of 861 million at SV activities for the quarter despite Group profit of
143 million. The prior-year result was a 77 million contribution to net income from SV
activities. The result for Com activities was a negative 588 million compared to a negative 25
million in the prior-year period. The difference is due mainly to non-operating factors in the
current quarter. The largest of these is the 201 million fine imposed by German authorities as
discussed earlier. In addition, a non-cash, pretax, preliminary gain of approximately 1.7 billion
generated by the transfer of Com assets into NSN was adjusted to approximately 1.6 billion in the
fourth quarter, and the enterprise network business within discontinued operations took an
impairment of 64 million. On an operating basis, Com activities posted losses of 115 million in
the current quarter and 113 million in the prior-year period, which included 235 million in
severance charges.
For fiscal 2007, income from discontinued operations contributed 129 million to net income,
compared to 703 million a year earlier. Contribution to net income from SV activities was a
negative 550 million compared to a positive 410 million in fiscal 2006. This swing was due to the
approximately 1.0 billion in tax expense mentioned above as well as interest expense and closing
costs related to the carve-out. Full-year results at Com-related activities contributed positively
in both the current and prior year, with 765 million and 357 million, respectively. The
current-year result was higher primarily due to the 1.6 billion NSN gain mentioned above. This
gain was partly offset by 567 million in impairments at the enterprise networking business, the
201 million penalty mentioned above, and 104 million in other costs related to legal and
regulatory matters. The remainder of the change year-over-year is due to an operating loss in the
current year compared to operating profit at Com a year earlier. While the profitable carrier
activities were included for all of fiscal 2006, they were transferred out of discontinued
operations and into NSN midway through fiscal 2007. Effects related to BenQ reduced net income by
86 million and 64 million, respectively, in fiscal 2007 and fiscal 2006.
Order and revenue trends in fiscal 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Orders (location of customer) |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
vs. previous year |
|
|
therein |
|
(
in millions) |
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted* |
|
|
Currency |
|
|
Portfolio |
|
Germany |
|
|
13,562 |
|
|
|
12,782 |
|
|
|
6 |
% |
|
|
5 |
% |
|
|
0 |
% |
|
|
1 |
% |
Europe (other than Germany) |
|
|
26,648 |
|
|
|
22,351 |
|
|
|
19 |
% |
|
|
18 |
% |
|
|
0 |
% |
|
|
1 |
% |
Americas |
|
|
22,831 |
|
|
|
20,202 |
|
|
|
13 |
% |
|
|
18 |
% |
|
|
(9 |
)% |
|
|
4 |
% |
Asia-Pacific |
|
|
13,291 |
|
|
|
11,250 |
|
|
|
18 |
% |
|
|
19 |
% |
|
|
(3 |
)% |
|
|
2 |
% |
Africa, Near and Middle
East, C.I.S.** |
|
|
7,584 |
|
|
|
8,359 |
|
|
|
(9 |
)% |
|
|
(7 |
)% |
|
|
(3 |
)% |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
83,916 |
|
|
|
74,944 |
|
|
|
12 |
% |
|
|
13 |
% |
|
|
(3 |
)% |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation and portfolio effects.
|
|
** |
|
Commonwealth of Independent States. |
11 / 14
Siemens booked 83.916 billion in new orders in fiscal 2007. This 12% rise compared to fiscal
2006 resulted in a book-to-bill ratio of 1.16 for the year. Europe outside Germany and the Americas
were the two largest regions by volume, followed by Germany and Asia Pacific. Europe outside
Germany showed the fastest growth of any region, with a 19% increase to 26.648 billion for the
year led by strong demand at PG, Med, PTD and A&D and numerous large new contracts. Orders in
Germany were 13.562 billion, up 6% including strong contributions from A&D, PG and TS.
In the Americas region, orders rose 13% compared to fiscal 2006, to 22.831 million, despite
considerable weakening of the U.S. dollar against the euro during the year. Continuing demand for
energy solutions at PG, and for industrial automation solutions at A&D and I&S, more than
compensated for industry, market and currency conditions that led to reported reductions in orders
in the U.S. at Med, Osram and SBT. As a result, the U.S. share of orders in the region fell to 73%
compared to 78% in fiscal 2006. On an organic basis, excluding the net effect of portfolio
transactions and unusually strongly negative currency translation effects, orders were up 18% in
the Americas overall.
Orders in Asia-Pacific came in at 13.291 billion, 18% higher than in the prior year, with PG, A&D,
PTD, Med and I&S all winning at least 20% more new business in the region compared to fiscal 2006.
Orders in China and India grew at 12% and 15% respectively, and accounted for 52% of new
Asia-Pacific orders during fiscal 2007. A year earlier, their combined share was 54%. New orders in
the Africa, Near and Middle East, C.I.S. region came in 9% lower year-over-year, at 7.584 billion,
primarily because the prior year included a very large order at TS for both trains and maintenance
in Russia. For the region as a whole, PTD, A&D and Osram saw double-digit order growth for the
current period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (location of customer) |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
vs. previous year |
|
|
therein |
|
(
in millions) |
|
2007 |
|
|
2006 |
|
|
Actual |
|
|
Adjusted* |
|
|
Currency |
|
|
Portfolio |
|
Germany |
|
|
12,594 |
|
|
|
12,382 |
|
|
|
2 |
% |
|
|
2 |
% |
|
|
0 |
% |
|
|
0 |
% |
Europe (other than Germany) |
|
|
22,801 |
|
|
|
20,489 |
|
|
|
11 |
% |
|
|
10 |
% |
|
|
0 |
% |
|
|
1 |
% |
Americas |
|
|
19,321 |
|
|
|
18,371 |
|
|
|
5 |
% |
|
|
9 |
% |
|
|
(8 |
)% |
|
|
4 |
% |
Asia-Pacific |
|
|
10,937 |
|
|
|
9,457 |
|
|
|
16 |
% |
|
|
18 |
% |
|
|
(3 |
)% |
|
|
1 |
% |
Africa, Near and Middle
East, C.I.S.** |
|
|
6,795 |
|
|
|
5,788 |
|
|
|
17 |
% |
|
|
19 |
% |
|
|
(3 |
)% |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
72,448 |
|
|
|
66,487 |
|
|
|
9 |
% |
|
|
10 |
% |
|
|
(3 |
)% |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation and portfolio effects.
|
|
** |
|
Commonwealth of Independent States. |
Revenue for fiscal 2007 totaled 72.448 billion, a 9% increase compared to fiscal 2006.
Revenue in Europe outside Germany rose 11% year-over-year, to 22.801 billion, with A&D, PG and Med
leading the increase. Revenue growth was more restrained in the Americas for the reasons mentioned
above, coming in 5% higher than in fiscal 2006 at 19.321 billion. Energy, automation and medical
solutions were the highlights for the Americas overall as well as for the U.S., which accounted for
77% of the regions revenue for the year. Brazil contributed 21% growth. On an organic basis,
revenue for the Americas climbed 9% year-over-year.
Revenue grew more rapidly in Asia-Pacific, reaching 10.937 billion on a 16% rise. Revenue in China
was up 13%, as A&D, PG and TS converted major orders from prior periods into current business.
While the majority of Groups booked more sales in China than in India, revenue for India jumped 62%
year-over-year from a smaller base and every operating Group posted double-digit increases.
Together China and India accounted for 53% of Asia-Pacific revenue, up from 50% in fiscal 2006. The
Africa, Near and Middle East, C.I.S. region saw 17% growth compared to the prior year, benefiting from
large infrastructure orders in prior years. Most Groups posted double-digit increases in the
region, with Siemens energy businesses accounting for 63% of the total volume of 6.795 billion.
12 / 14
Cash flows and cash conversion rate for the fourth quarter
Operating activities provided net cash of 3.352 billion in the fourth quarter of fiscal 2007.
Discontinued operations used net cash of 241 million, including 640 million in tax payments
related to the divestment of SV. A year earlier, operating activities in the fourth quarter
provided net cash of 2.800 billion, with discontinued operations providing 737 million of the
total.
Investing activities used net cash of 1.181 billion in the fourth quarter of fiscal 2007, down
from 3.231 billion in the prior-year period. Continuing operations were the primary factor in the
change year-over-year. Discontinued operations used net cash of 402 million in the current quarter
and 298 million in the prior-year period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SFS, SRE and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
Continuing operations |
|
|
|
|
|
Operations |
|
|
Treasury * |
|
|
Siemens |
|
|
|
|
|
|
|
Fourth quarter ended September 30, |
|
(
in millions) |
|
|
|
|
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
Net cash provided by (used in): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
A |
|
|
|
3,246 |
|
|
|
1,867 |
|
|
|
347 |
|
|
|
196 |
|
|
|
3,593 |
|
|
|
2,063 |
|
Investing activities |
|
|
|
|
|
|
(704 |
) |
|
|
(2,368 |
) |
|
|
(75 |
) |
|
|
(565 |
) |
|
|
(779 |
) |
|
|
(2,933 |
) |
Thereof: Additions to
intangible assets and
property, plant and
equipment |
|
|
B |
|
|
|
(731 |
) |
|
|
(857 |
) |
|
|
(309 |
) |
|
|
(243 |
) |
|
|
(1,040 |
) |
|
|
(1,100 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow ** |
|
|
A+B |
|
|
|
2,515 |
|
|
|
1,010 |
|
|
|
38 |
|
|
|
(47 |
) |
|
|
2,553 |
|
|
|
963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Also includes eliminations and reclassifications. |
|
** |
|
Free cash flow from continuing operations is presented in the table Segment information. |
On a continuing basis, net cash provided by operating activities within Operations rose
strongly to
3.246 billion, from 1.867 billion in the fourth quarter a year earlier. This increase
was driven by a substantially higher income from continuing operations compared to the prior-year
period. Investing activities within Operations used net cash of
704 million in the fourth quarter.
A year earlier, net cash used of 2.368 billion included a cash outflow of approximately 1.3
billion for the acquisition of Diagnostics Products Corp. Investing activities within Financing and
Real Estate and Corporate Treasury used 75 million compared to cash used of 565 million in the
prior year period, which included net investments in available-for-sale financial assets of 423
million.
Free cash flow from continuing operations for Siemens was 2.553 billion for the fourth quarter of
fiscal 2007. The primary factors in the substantial increase year-over-year were higher Income from
continuing operations and cash inflows resulting from changes in net working capital. The
corresponding cash conversion rate for the quarter was 1.83, nearly double Siemens target rate of
0.92. For the full fiscal year, the cash conversion rate improved to 1.73 from 0.69 in fiscal 2006.
Funding status of pension plans
The funding status of Siemens principal pension plans on September 30, 2007, was an underfunding
of approximately 1.0 billion compared to an underfunding of approximately 0.2 billion at the end
of the third quarter of fiscal 2007. The increase in underfunding is primarily due to a decrease in
the discount rate assumption at September 30, 2007, increasing Siemens defined benefit obligation,
and furthermore due to the regular increase in the defined benefit obligation as a result of
service and interest cost. Altogether this by far offset the positive effect on funding status due
to the actual return on plan assets and employer contributions. The actual return on plan assets
during the last three months amounted to 199 million. This represents a 3.5% return on an
annualized basis, compared to the expected annual return of 6.5%.
13 / 14
All figures are preliminary and unaudited. Reconciliation and Definitions of our Non-GAAP Measures
are available on our Investor Relations website under
www.siemens.com/ir, Financial Publications,
Quarterly Reports.
This Earnings Release should be read in conjunction with information Siemens published today
regarding legal proceedings. More detailed disclosure regarding legal proceedings is provided in
the Annual 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/ir, where you
can also find a presentation explaining major differences between IFRS and U.S. GAAP in Siemens
financial results.
|
|
|
Siemens AG
Corporate Communications and Government Affairs
Media Relations
80312 Munich
|
|
Reference number: AXX200711.10 e
Wolfram Trost
80312 Munich
Tel.: +49 89 636-34794; Fax: -32825
E-Mail: wolfram.trost@siemens.com |
14 / 14
SIEMENS
SEGMENT INFORMATION (continuing operations preliminary and unaudited)
As of and for the three months ended September 30, 2007 and 2006
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets |
|
Amortization, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net capital |
|
|
|
|
|
|
|
|
|
and property, plant |
|
depreciation and |
|
|
New orders
|
|
External revenue
|
|
revenue
|
|
Total revenue
|
|
Group profit(1)
|
|
employed(2)
|
|
Free cash flow(3)
|
|
and equipment
|
|
impairments(4)
|
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
9/30/07
|
|
9/30/06
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
Operations Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens IT Solutions and Services (SIS)(5) |
|
|
1,595 |
|
|
|
1,266 |
|
|
|
1,041 |
|
|
|
1,066 |
|
|
|
397 |
|
|
|
358 |
|
|
|
1,438 |
|
|
|
1,424 |
|
|
|
80 |
|
|
|
(230 |
) |
|
|
253 |
|
|
|
18 |
|
|
|
211 |
|
|
|
(11 |
) |
|
|
39 |
|
|
|
68 |
|
|
|
75 |
|
|
|
66 |
|
Automation and Drives (A&D) |
|
|
4,351 |
|
|
|
3,520 |
|
|
|
3,901 |
|
|
|
3,179 |
|
|
|
502 |
|
|
|
430 |
|
|
|
4,403 |
|
|
|
3,609 |
|
|
|
607 |
|
|
|
427 |
|
|
|
7,026 |
|
|
|
3,837 |
|
|
|
809 |
|
|
|
470 |
|
|
|
168 |
|
|
|
182 |
|
|
|
131 |
|
|
|
80 |
|
Industrial Solutions and Services (I&S) |
|
|
2,168 |
|
|
|
2,129 |
|
|
|
2,184 |
|
|
|
2,191 |
|
|
|
316 |
|
|
|
286 |
|
|
|
2,500 |
|
|
|
2,477 |
|
|
|
130 |
|
|
|
61 |
|
|
|
1,198 |
|
|
|
1,279 |
|
|
|
232 |
|
|
|
126 |
|
|
|
23 |
|
|
|
46 |
|
|
|
27 |
|
|
|
32 |
|
Siemens Building Technologies (SBT) |
|
|
1,331 |
|
|
|
1,402 |
|
|
|
1,307 |
|
|
|
1,363 |
|
|
|
46 |
|
|
|
40 |
|
|
|
1,353 |
|
|
|
1,403 |
|
|
|
102 |
|
|
|
77 |
|
|
|
1,807 |
|
|
|
1,764 |
|
|
|
151 |
|
|
|
43 |
|
|
|
30 |
|
|
|
27 |
|
|
|
33 |
|
|
|
28 |
|
Power Generation (PG) |
|
|
4,012 |
|
|
|
2,738 |
|
|
|
3,528 |
|
|
|
2,923 |
|
|
|
5 |
|
|
|
1 |
|
|
|
3,533 |
|
|
|
2,924 |
|
|
|
358 |
|
|
|
122 |
|
|
|
1,371 |
|
|
|
1,945 |
|
|
|
621 |
|
|
|
84 |
|
|
|
116 |
|
|
|
140 |
|
|
|
63 |
|
|
|
60 |
|
Power Transmission and Distribution (PTD) |
|
|
1,882 |
|
|
|
1,683 |
|
|
|
2,093 |
|
|
|
1,697 |
|
|
|
190 |
|
|
|
142 |
|
|
|
2,283 |
|
|
|
1,839 |
|
|
|
225 |
|
|
|
54 |
|
|
|
1,865 |
|
|
|
1,701 |
|
|
|
391 |
|
|
|
84 |
|
|
|
59 |
|
|
|
71 |
|
|
|
31 |
|
|
|
32 |
|
Transportation Systems (TS) |
|
|
2,189 |
|
|
|
743 |
|
|
|
1,204 |
|
|
|
1,436 |
|
|
|
8 |
|
|
|
10 |
|
|
|
1,212 |
|
|
|
1,446 |
|
|
|
62 |
|
|
|
19 |
|
|
|
(58 |
) |
|
|
111 |
|
|
|
97 |
|
|
|
(40 |
) |
|
|
22 |
|
|
|
48 |
|
|
|
17 |
|
|
|
19 |
|
Medical Solutions (Med) |
|
|
2,999 |
|
|
|
2,994 |
|
|
|
2,833 |
|
|
|
2,330 |
|
|
|
15 |
|
|
|
29 |
|
|
|
2,848 |
|
|
|
2,359 |
|
|
|
380 |
|
|
|
266 |
|
|
|
8,234 |
|
|
|
4,975 |
|
|
|
518 |
|
|
|
316 |
|
|
|
123 |
|
|
|
97 |
|
|
|
120 |
|
|
|
102 |
|
Osram |
|
|
1,203 |
|
|
|
1,110 |
|
|
|
1,199 |
|
|
|
1,107 |
|
|
|
4 |
|
|
|
3 |
|
|
|
1,203 |
|
|
|
1,110 |
|
|
|
128 |
|
|
|
86 |
|
|
|
1,994 |
|
|
|
1,976 |
|
|
|
164 |
|
|
|
132 |
|
|
|
90 |
|
|
|
104 |
|
|
|
70 |
|
|
|
66 |
|
Strategic Equity Investments (SEI)(6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11 |
) |
|
|
75 |
|
|
|
4,891 |
|
|
|
1,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operations |
|
|
587 |
|
|
|
958 |
|
|
|
570 |
|
|
|
850 |
|
|
|
93 |
|
|
|
162 |
|
|
|
663 |
|
|
|
1,012 |
|
|
|
(71 |
) |
|
|
(208 |
) |
|
|
181 |
|
|
|
201 |
|
|
|
(45 |
) |
|
|
89 |
|
|
|
56 |
|
|
|
56 |
|
|
|
33 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations Groups |
|
|
22,317 |
|
|
|
18,543 |
|
|
|
19,860 |
|
|
|
18,142 |
|
|
|
1,576 |
|
|
|
1,461 |
|
|
|
21,436 |
|
|
|
19,603 |
|
|
|
1,990 |
|
|
|
749 |
|
|
|
28,762 |
|
|
|
18,815 |
|
|
|
3,149 |
|
|
|
1,293 |
|
|
|
726 |
|
|
|
839 |
|
|
|
600 |
|
|
|
506 |
|
Reconciliation to financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate items, pensions and eliminations |
|
|
(1,219 |
) |
|
|
(1,217 |
) |
|
|
49 |
|
|
|
29 |
|
|
|
(1,505 |
) |
|
|
(1,361 |
) |
|
|
(1,456 |
) |
|
|
(1,332 |
) |
|
|
(451 |
) |
|
|
(493 |
) |
|
|
(3,536 |
) |
|
|
(6,392 |
) |
|
|
(634 |
)(7) |
|
|
(283 |
)(7) |
|
|
5 |
|
|
|
18 |
|
|
|
103 |
|
|
|
14 |
|
Other interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(117 |
) |
|
|
(77 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets related and miscellaneous reconciling items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,432 |
|
|
|
67,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations (for columns Group profit/Net capital
employed, i.e. Income before income taxes/Total assets) |
|
|
21,098 |
|
|
|
17,326 |
|
|
|
19,909 |
|
|
|
18,171 |
|
|
|
71 |
|
|
|
100 |
|
|
|
19,980 |
|
|
|
18,271 |
|
|
|
1,422 |
|
|
|
179 |
|
|
|
87,658 |
|
|
|
80,222 |
|
|
|
2,515 |
|
|
|
1,010 |
|
|
|
731 |
|
|
|
857 |
|
|
|
703 |
|
|
|
520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
Total assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing and Real Estate Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens Financial Services (SFS) |
|
|
198 |
|
|
|
169 |
|
|
|
183 |
|
|
|
154 |
|
|
|
15 |
|
|
|
15 |
|
|
|
198 |
|
|
|
169 |
|
|
|
52 |
|
|
|
120 |
|
|
|
8,912 |
|
|
|
10,543 |
|
|
|
53 |
|
|
|
31 |
|
|
|
242 |
|
|
|
175 |
|
|
|
84 |
|
|
|
65 |
|
Siemens Real Estate (SRE) |
|
|
435 |
|
|
|
446 |
|
|
|
109 |
|
|
|
146 |
|
|
|
326 |
|
|
|
300 |
|
|
|
435 |
|
|
|
446 |
|
|
|
48 |
|
|
|
13 |
|
|
|
3,091 |
|
|
|
3,221 |
|
|
|
(23 |
) |
|
|
20 |
|
|
|
67 |
|
|
|
68 |
|
|
|
47 |
|
|
|
52 |
|
Eliminations |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
(458 |
) |
|
|
(462 |
) |
|
|
99 |
(7) |
|
|
37 |
(7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Financing and Real Estate |
|
|
630 |
|
|
|
612 |
|
|
|
292 |
|
|
|
300 |
|
|
|
338 |
|
|
|
312 |
|
|
|
630 |
|
|
|
612 |
|
|
|
100 |
|
|
|
133 |
|
|
|
11,545 |
|
|
|
13,302 |
|
|
|
129 |
|
|
|
88 |
|
|
|
309 |
|
|
|
243 |
|
|
|
131 |
|
|
|
117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations, reclassifications and Corporate Treasury |
|
|
(400 |
) |
|
|
(363 |
) |
|
|
|
|
|
|
|
|
|
|
(409 |
) |
|
|
(412 |
) |
|
|
(409 |
) |
|
|
(412 |
) |
|
|
19 |
|
|
|
(4 |
) |
|
|
(7,648 |
) |
|
|
(5,793 |
) |
|
|
(91) |
(7) |
|
|
(135) |
(7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
21,328 |
|
|
|
17,575 |
|
|
|
20,201 |
|
|
|
18,471 |
|
|
|
|
|
|
|
|
|
|
|
20,201 |
|
|
|
18,471 |
|
|
|
1,541 |
|
|
|
308 |
|
|
|
91,555 |
|
|
|
87,731 |
|
|
|
2,553 |
|
|
|
963 |
|
|
|
1,040 |
|
|
|
1,100 |
|
|
|
834 |
|
|
|
637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Group profit of the Operations Groups is earnings before financing interest, certain
pension costs and income taxes and may exclude other categories of items which are
not allocated to the Groups since the Managing Board does not regard such items as
indicative of the Groups performance. |
|
(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) |
|
Free cash flow represents net cash provided by (used in) operating activities less
additions to intangible assets and property, plant and equipment. |
|
(4) |
|
Amortization and impairments of intangible assets other than goodwill and
depreciation and impairments of property, plant and equipment. Goodwill impairment
and impairment of non-current available-for-sale financial assets and investments
accounted for under the equity method for Siemens amount to 60 and 44 for the three
months ended September 30, 2007 and 2006, respectively. |
|
(5) |
|
SIS was created effective April 1, 2007 and consists primarily of the activities of
the former segment Siemens Business Services that were bundled with other information
technology (IT) activities. Prior-year information was reclassified for comparability
purposes. |
|
(6) |
|
SEI was created as of October 1, 2006 and includes certain strategic investments
accounted for using the equity method. Beginning in the third quarter of fiscal 2007,
the Siemens investment in Nokia Siemens Networks is also reported in SEI. |
|
(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 preliminary and unaudited)
As of and for the fiscal years ended September 30, 2007 and 2006
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets |
|
Amortization, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net capital |
|
|
|
|
|
|
|
|
|
and property, plant |
|
depreciation and |
|
|
New orders
|
|
External revenue
|
|
revenue
|
|
Total revenue
|
|
Group profit(1)
|
|
employed(2)
|
|
Free cash flow(3)
|
|
and equipment
|
|
impairments(4)
|
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
9/30/07
|
|
9/30/06
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
Operations Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens IT Solutions and Services (SIS)(5) |
|
|
5,156 |
|
|
|
5,574 |
|
|
|
3,988 |
|
|
|
4,466 |
|
|
|
1,372 |
|
|
|
1,227 |
|
|
|
5,360 |
|
|
|
5,693 |
|
|
|
252 |
|
|
|
(731 |
) |
|
|
253 |
|
|
|
18 |
|
|
|
18 |
|
|
|
(661 |
) |
|
|
204 |
|
|
|
284 |
|
|
|
282 |
|
|
|
292 |
|
Automation and Drives (A&D) |
|
|
16,794 |
|
|
|
14,312 |
|
|
|
13,695 |
|
|
|
11,564 |
|
|
|
1,694 |
|
|
|
1,477 |
|
|
|
15,389 |
|
|
|
13,041 |
|
|
|
2,090 |
|
|
|
1,575 |
|
|
|
7,026 |
|
|
|
3,837 |
|
|
|
1,857 |
|
|
|
1,258 |
|
|
|
496 |
|
|
|
459 |
|
|
|
374 |
|
|
|
296 |
|
Industrial Solutions and Services (I&S) |
|
|
10,161 |
|
|
|
9,025 |
|
|
|
7,824 |
|
|
|
7,837 |
|
|
|
1,070 |
|
|
|
982 |
|
|
|
8,894 |
|
|
|
8,819 |
|
|
|
415 |
|
|
|
282 |
|
|
|
1,198 |
|
|
|
1,279 |
|
|
|
397 |
|
|
|
321 |
|
|
|
83 |
|
|
|
115 |
|
|
|
108 |
|
|
|
123 |
|
Siemens Building Technologies (SBT) |
|
|
5,350 |
|
|
|
5,235 |
|
|
|
4,952 |
|
|
|
4,695 |
|
|
|
110 |
|
|
|
101 |
|
|
|
5,062 |
|
|
|
4,796 |
|
|
|
354 |
|
|
|
223 |
|
|
|
1,807 |
|
|
|
1,764 |
|
|
|
340 |
|
|
|
(1 |
) |
|
|
123 |
|
|
|
120 |
|
|
|
127 |
|
|
|
109 |
|
Power Generation (PG) |
|
|
17,988 |
|
|
|
12,532 |
|
|
|
12,159 |
|
|
|
10,068 |
|
|
|
35 |
|
|
|
18 |
|
|
|
12,194 |
|
|
|
10,086 |
|
|
|
1,147 |
|
|
|
779 |
|
|
|
1,371 |
|
|
|
1,945 |
|
|
|
2,019 |
|
|
|
608 |
|
|
|
253 |
|
|
|
305 |
|
|
|
229 |
|
|
|
216 |
|
Power Transmission and Distribution (PTD) |
|
|
9,896 |
|
|
|
8,028 |
|
|
|
7,126 |
|
|
|
6,032 |
|
|
|
563 |
|
|
|
477 |
|
|
|
7,689 |
|
|
|
6,509 |
|
|
|
650 |
|
|
|
315 |
|
|
|
1,865 |
|
|
|
1,701 |
|
|
|
515 |
|
|
|
135 |
|
|
|
170 |
|
|
|
171 |
|
|
|
110 |
|
|
|
119 |
|
Transportation Systems (TS) |
|
|
4,780 |
|
|
|
6,173 |
|
|
|
4,418 |
|
|
|
4,429 |
|
|
|
34 |
|
|
|
64 |
|
|
|
4,452 |
|
|
|
4,493 |
|
|
|
191 |
|
|
|
72 |
|
|
|
(58 |
) |
|
|
111 |
|
|
|
335 |
|
|
|
24 |
|
|
|
54 |
|
|
|
138 |
|
|
|
58 |
|
|
|
57 |
|
Medical Solutions (Med) |
|
|
10,271 |
|
|
|
9,334 |
|
|
|
9,798 |
|
|
|
8,164 |
|
|
|
53 |
|
|
|
63 |
|
|
|
9,851 |
|
|
|
8,227 |
|
|
|
1,323 |
|
|
|
988 |
|
|
|
8,234 |
|
|
|
4,975 |
|
|
|
1,380 |
|
|
|
893 |
|
|
|
444 |
|
|
|
314 |
|
|
|
438 |
|
|
|
284 |
|
Osram |
|
|
4,690 |
|
|
|
4,563 |
|
|
|
4,677 |
|
|
|
4,547 |
|
|
|
13 |
|
|
|
16 |
|
|
|
4,690 |
|
|
|
4,563 |
|
|
|
492 |
|
|
|
456 |
|
|
|
1,994 |
|
|
|
1,976 |
|
|
|
392 |
|
|
|
444 |
|
|
|
298 |
|
|
|
313 |
|
|
|
255 |
|
|
|
261 |
|
Strategic Equity Investments (SEI)(6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(161 |
) |
|
|
225 |
|
|
|
4,891 |
|
|
|
1,008 |
|
|
|
76 |
|
|
|
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operations |
|
|
2,830 |
|
|
|
4,068 |
|
|
|
2,516 |
|
|
|
3,427 |
|
|
|
368 |
|
|
|
517 |
|
|
|
2,884 |
|
|
|
3,944 |
|
|
|
(193 |
) |
|
|
(317 |
) |
|
|
181 |
|
|
|
201 |
|
|
|
(292 |
) |
|
|
(278 |
) |
|
|
166 |
|
|
|
197 |
|
|
|
118 |
|
|
|
121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations Groups |
|
|
87,916 |
|
|
|
78,844 |
|
|
|
71,153 |
|
|
|
65,229 |
|
|
|
5,312 |
|
|
|
4,942 |
|
|
|
76,465 |
|
|
|
70,171 |
|
|
|
6,560 |
|
|
|
3,867 |
|
|
|
28,762 |
|
|
|
18,815 |
|
|
|
7,037 |
|
|
|
2,806 |
|
|
|
2,291 |
|
|
|
2,416 |
|
|
|
2,099 |
|
|
|
1,878 |
|
Reconciliation to financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate items, pensions and eliminations |
|
|
(4,949 |
) |
|
|
(4,855 |
) |
|
|
166 |
|
|
|
97 |
|
|
|
(5,078 |
) |
|
|
(4,692 |
) |
|
|
(4,912 |
) |
|
|
(4,595 |
) |
|
|
(1,672 |
) |
|
|
(527 |
) |
|
|
(3,536 |
) |
|
|
(6,392 |
) |
|
|
(2,943 |
)(7) |
|
|
(1,816 |
)(7) |
|
|
22 |
|
|
|
(1 |
) |
|
|
88 |
|
|
|
4 |
|
Other interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(497 |
) |
|
|
(325 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets related and miscellaneous reconciling items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,432 |
|
|
|
67,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations (for columns Group profit/Net capital
employed, i.e. Income before income taxes/Total assets) |
|
|
82,967 |
|
|
|
73,989 |
|
|
|
71,319 |
|
|
|
65,326 |
|
|
|
234 |
|
|
|
250 |
|
|
|
71,553 |
|
|
|
65,576 |
|
|
|
4,391 |
|
|
|
3,015 |
|
|
|
87,658 |
|
|
|
80,222 |
|
|
|
4,094 |
|
|
|
990 |
|
|
|
2,313 |
|
|
|
2,415 |
|
|
|
2,187 |
|
|
|
1,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
Total assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing and Real Estate Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens Financial Services (SFS) |
|
|
721 |
|
|
|
645 |
|
|
|
653 |
|
|
|
581 |
|
|
|
67 |
|
|
|
64 |
|
|
|
720 |
|
|
|
645 |
|
|
|
329 |
|
|
|
306 |
|
|
|
8,912 |
|
|
|
10,543 |
|
|
|
108 |
|
|
|
71 |
|
|
|
558 |
|
|
|
498 |
|
|
|
277 |
|
|
|
241 |
|
Siemens Real Estate (SRE) |
|
|
1,686 |
|
|
|
1,705 |
|
|
|
476 |
|
|
|
580 |
|
|
|
1,210 |
|
|
|
1,125 |
|
|
|
1,686 |
|
|
|
1,705 |
|
|
|
228 |
|
|
|
115 |
|
|
|
3,091 |
|
|
|
3,221 |
|
|
|
(35 |
) |
|
|
(45 |
) |
|
|
196 |
|
|
|
270 |
|
|
|
161 |
|
|
|
191 |
|
Eliminations |
|
|
(13 |
) |
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
(13 |
) |
|
|
(10 |
) |
|
|
(13 |
) |
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
(458 |
) |
|
|
(462 |
) |
|
|
258 |
(7) |
|
|
243 |
(7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Financing and Real Estate |
|
|
2,394 |
|
|
|
2,340 |
|
|
|
1,129 |
|
|
|
1,161 |
|
|
|
1,264 |
|
|
|
1,179 |
|
|
|
2,393 |
|
|
|
2,340 |
|
|
|
557 |
|
|
|
421 |
|
|
|
11,545 |
|
|
|
13,302 |
|
|
|
331 |
|
|
|
269 |
|
|
|
754 |
|
|
|
768 |
|
|
|
438 |
|
|
|
432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations, reclassifications and Corporate Treasury |
|
|
(1,445 |
) |
|
|
(1,385 |
) |
|
|
|
|
|
|
|
|
|
|
(1,498 |
) |
|
|
(1,429 |
) |
|
|
(1,498 |
) |
|
|
(1,429 |
) |
|
|
153 |
|
|
|
(18 |
) |
|
|
(7,648 |
) |
|
|
(5,793 |
) |
|
|
2,330 |
(7) |
|
|
561 |
(7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
83,916 |
|
|
|
74,944 |
|
|
|
72,448 |
|
|
|
66,487 |
|
|
|
|
|
|
|
|
|
|
|
72,448 |
|
|
|
66,487 |
|
|
|
5,101 |
|
|
|
3,418 |
|
|
|
91,555 |
|
|
|
87,731 |
|
|
|
6,755 |
|
|
|
1,820 |
|
|
|
3,067 |
|
|
|
3,183 |
|
|
|
2,625 |
|
|
|
2,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Group profit of the Operations Groups is earnings before financing interest, certain
pension costs and income taxes and may exclude other categories of items which are
not allocated to the Groups since the Managing Board does not regard such items as
indicative of the Groups performance. |
|
(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) |
|
Free cash flow represents net cash provided by (used in) operating activities less
additions to intangible assets and property, plant and equipment. |
|
(4) |
|
Amortization and impairments of intangible assets other than goodwill and
depreciation and impairments of property, plant and equipment. Goodwill impairment
and impairment of non-current available-for-sale financial assets and investments
accounted for under the equity method for Siemens amount to 158 and 89 for the
fiscal years ended September 30, 2007 and 2006, respectively. |
|
(5) |
|
SIS was created effective April 1, 2007 and consists primarily of the activities of
the former segment Siemens Business Services that were bundled with other information
technology (IT) activities. Prior-year information was reclassified for comparability
purposes. |
|
(6) |
|
SEI was created as of October 1, 2006 and includes certain strategic investments
accounted for using the equity method. Beginning in the third quarter of fiscal 2007,
the Siemens investment in Nokia Siemens Networks is also reported in SEI. |
|
(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 (preliminary and unaudited)
For the three months ended September 30, 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 |
|
|
20,201 |
|
|
|
18,471 |
|
|
|
(409 |
) |
|
|
(412 |
) |
|
|
19,980 |
|
|
|
18,271 |
|
|
|
630 |
|
|
|
612 |
|
Cost of goods sold and services rendered |
|
|
(14,279 |
) |
|
|
(13,971 |
) |
|
|
409 |
|
|
|
412 |
|
|
|
(14,138 |
) |
|
|
(13,844 |
) |
|
|
(550 |
) |
|
|
(539 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
5,922 |
|
|
|
4,500 |
|
|
|
|
|
|
|
|
|
|
|
5,842 |
|
|
|
4,427 |
|
|
|
80 |
|
|
|
73 |
|
Research and development expenses |
|
|
(963 |
) |
|
|
(842 |
) |
|
|
|
|
|
|
|
|
|
|
(963 |
) |
|
|
(842 |
) |
|
|
|
|
|
|
|
|
Marketing, selling and general administrative expenses |
|
|
(3,436 |
) |
|
|
(3,367 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(3,340 |
) |
|
|
(3,272 |
) |
|
|
(95 |
) |
|
|
(93 |
) |
Other operating income |
|
|
219 |
|
|
|
140 |
|
|
|
(24 |
) |
|
|
(12 |
) |
|
|
137 |
|
|
|
91 |
|
|
|
106 |
|
|
|
61 |
|
Other operating expense |
|
|
(187 |
) |
|
|
(101 |
) |
|
|
(10 |
) |
|
|
(1 |
) |
|
|
(166 |
) |
|
|
(75 |
) |
|
|
(11 |
) |
|
|
(25 |
) |
Income (loss) from investments accounted for using the equity method, net |
|
|
3 |
|
|
|
45 |
|
|
|
|
|
|
|
|
|
|
|
(12 |
) |
|
|
34 |
|
|
|
15 |
|
|
|
11 |
|
Financial income (expense), net |
|
|
(17 |
) |
|
|
(67 |
) |
|
|
54 |
|
|
|
11 |
|
|
|
(76 |
) |
|
|
(184 |
) |
|
|
5 |
|
|
|
106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes |
|
|
1,541 |
|
|
|
308 |
|
|
|
19 |
|
|
|
(4 |
) |
|
|
1,422 |
|
|
|
179 |
|
|
|
100 |
|
|
|
133 |
|
Income taxes (1) |
|
|
(147 |
) |
|
|
(169 |
) |
|
|
3 |
|
|
|
1 |
|
|
|
(154 |
) |
|
|
(131 |
) |
|
|
4 |
|
|
|
(39 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
|
1,394 |
|
|
|
139 |
|
|
|
22 |
|
|
|
(3 |
) |
|
|
1,268 |
|
|
|
48 |
|
|
|
104 |
|
|
|
94 |
|
Income (loss) from discontinued operations, net of income taxes |
|
|
(1,468 |
) |
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
(1,466 |
) |
|
|
18 |
|
|
|
(2 |
) |
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
(74 |
) |
|
|
148 |
|
|
|
22 |
|
|
|
(3 |
) |
|
|
(198 |
) |
|
|
66 |
|
|
|
102 |
|
|
|
85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
81 |
|
|
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of Siemens AG |
|
|
(155 |
) |
|
|
90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (losses) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
1.45 |
|
|
|
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations |
|
|
(1.62 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
(0.17 |
) |
|
|
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (losses) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
1.41 |
|
|
|
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations |
|
|
(1.60 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
(0.19 |
) |
|
|
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE RECOGNIZED IN EQUITY (preliminary and unaudited)
For the three months ended September 30, 2007 and 2006
(in millions of ) |
|
|
|
Siemens
|
|
|
|
2007
|
|
|
2006
|
|
Net income (loss) |
|
|
(74 |
) |
|
|
148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation differences |
|
|
(322 |
) |
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets |
|
|
44 |
|
|
|
(107 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
64 |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains and losses on pension plans and similar commitments |
|
|
(532 |
) |
|
|
(770 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation effect related to step acquisitions |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income and expense recognized directly in equity, net of tax(2)(3) |
|
|
(746 |
) |
|
|
(853 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income and expense recognized in equity |
|
|
(820 |
) |
|
|
(705 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
82 |
|
|
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of Siemens AG |
|
|
(902 |
) |
|
|
(763 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 5 and (16) in 2007 and 2006, respectively, resulting from investments accounted
for using the equity method. |
|
(3) |
|
Includes minority interest of (2) and in 2007 and 2006, respectively, relating to
currency translation differences and minority interest of 3 and in 2007 and 2006,
respectively, relating to actuarial gains and losses on
pension plans and similar commitments. |
SIEMENS
CONSOLIDATED STATEMENTS OF INCOME (preliminary and unaudited)
For the fiscal years ended September 30, 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 |
|
|
72,448 |
|
|
|
66,487 |
|
|
|
(1,498 |
) |
|
|
(1,429 |
) |
|
|
71,553 |
|
|
|
65,576 |
|
|
|
2,393 |
|
|
|
2,340 |
|
Cost of goods sold and services rendered |
|
|
(51,572 |
) |
|
|
(49,108 |
) |
|
|
1,498 |
|
|
|
1,429 |
|
|
|
(51,091 |
) |
|
|
(48,525 |
) |
|
|
(1,979 |
) |
|
|
(2,012 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
20,876 |
|
|
|
17,379 |
|
|
|
|
|
|
|
|
|
|
|
20,462 |
|
|
|
17,051 |
|
|
|
414 |
|
|
|
328 |
|
Research and development expenses |
|
|
(3,399 |
) |
|
|
(3,091 |
) |
|
|
|
|
|
|
|
|
|
|
(3,399 |
) |
|
|
(3,091 |
) |
|
|
|
|
|
|
|
|
Marketing, selling and general administrative expenses |
|
|
(12,103 |
) |
|
|
(11,897 |
) |
|
|
(3 |
) |
|
|
(6 |
) |
|
|
(11,740 |
) |
|
|
(11,545 |
) |
|
|
(360 |
) |
|
|
(346 |
) |
Other operating income |
|
|
680 |
|
|
|
629 |
|
|
|
(70 |
) |
|
|
(77 |
) |
|
|
447 |
|
|
|
456 |
|
|
|
303 |
|
|
|
250 |
|
Other operating expense |
|
|
(1,053 |
) |
|
|
(260 |
) |
|
|
(13 |
) |
|
|
|
|
|
|
(1,013 |
) |
|
|
(216 |
) |
|
|
(27 |
) |
|
|
(44 |
) |
Income (loss) from investments accounted for using the equity method, net |
|
|
108 |
|
|
|
404 |
|
|
|
|
|
|
|
|
|
|
|
39 |
|
|
|
351 |
|
|
|
69 |
|
|
|
53 |
|
Financial income (expense), net |
|
|
(8 |
) |
|
|
254 |
|
|
|
239 |
|
|
|
65 |
|
|
|
(405 |
) |
|
|
9 |
|
|
|
158 |
|
|
|
180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes |
|
|
5,101 |
|
|
|
3,418 |
|
|
|
153 |
|
|
|
(18 |
) |
|
|
4,391 |
|
|
|
3,015 |
|
|
|
557 |
|
|
|
421 |
|
Income taxes(1) |
|
|
(1,192 |
) |
|
|
(776 |
) |
|
|
(36 |
) |
|
|
4 |
|
|
|
(1,026 |
) |
|
|
(684 |
) |
|
|
(130 |
) |
|
|
(96 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
|
3,909 |
|
|
|
2,642 |
|
|
|
117 |
|
|
|
(14 |
) |
|
|
3,365 |
|
|
|
2,331 |
|
|
|
427 |
|
|
|
325 |
|
Income (loss) from discontinued operations, net of income taxes |
|
|
129 |
|
|
|
703 |
|
|
|
|
|
|
|
|
|
|
|
131 |
|
|
|
712 |
|
|
|
(2 |
) |
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
4,038 |
|
|
|
3,345 |
|
|
|
117 |
|
|
|
(14 |
) |
|
|
3,496 |
|
|
|
3,043 |
|
|
|
425 |
|
|
|
316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
232 |
|
|
|
210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of Siemens AG |
|
|
3,806 |
|
|
|
3,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
4.13 |
|
|
|
2.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations |
|
|
0.11 |
|
|
|
0.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
4.24 |
|
|
|
3.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
3.99 |
|
|
|
2.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations |
|
|
0.11 |
|
|
|
0.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
4.10 |
|
|
|
3.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE RECOGNIZED IN EQUITY (preliminary and unaudited)
For the fiscal years ended September 30, 2007 and 2006
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens
|
|
|
|
2007
|
|
|
2006
|
|
Net income |
|
|
4,038 |
|
|
|
3,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation differences |
|
|
(536 |
) |
|
|
(349 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets |
|
|
30 |
|
|
|
(354 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
100 |
|
|
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains and losses on pension plans and similar commitments |
|
|
1,237 |
|
|
|
245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation effect related to step acquisitions |
|
|
3 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income and expense recognized directly in equity, net of tax (2) (3) |
|
|
834 |
|
|
|
(396 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income and expense recognized in equity |
|
|
4,872 |
|
|
|
2,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
265 |
|
|
|
181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of Siemens AG |
|
|
4,607 |
|
|
|
2,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 (26) and (50) in 2007 and 2006, respectively, resulting from investments accounted
for using the equity method. |
|
(3) |
|
Includes minority interest of 30 and (29) in 2007 and 2006, respectively, relating to
currency translation differences and minority interest of 3 and in 2007 and 2006,
respectively, relating to actuarial gains and losses on pension plans and similar
commitments. |
SIEMENS
CONSOLIDATED STATEMENTS OF CASH FLOW (preliminary and unaudited)
For the fiscal years ended September 30, 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) |
|
|
4,038 |
|
|
|
3,345 |
|
|
|
117 |
|
|
|
(14 |
) |
|
|
3,496 |
|
|
|
3,043 |
|
|
|
425 |
|
|
|
316 |
|
Adjustments to reconcile net income to cash provided |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization, depreciation and impairments |
|
|
3,751 |
|
|
|
3,118 |
|
|
|
|
|
|
|
|
|
|
|
3,288 |
|
|
|
2,676 |
|
|
|
463 |
|
|
|
442 |
|
Income taxes |
|
|
2,193 |
|
|
|
775 |
|
|
|
36 |
|
|
|
(3 |
) |
|
|
2,028 |
|
|
|
688 |
|
|
|
129 |
|
|
|
90 |
|
Interest (income) expense, net |
|
|
193 |
|
|
|
(142 |
) |
|
|
(293 |
) |
|
|
(409 |
) |
|
|
593 |
|
|
|
404 |
|
|
|
(107 |
) |
|
|
(137 |
) |
(Gains) losses on sales and disposals of businesses, intangibles and property, plant and equipment, net |
|
|
(2,051 |
) |
|
|
(113 |
) |
|
|
11 |
|
|
|
|
|
|
|
(1,867 |
) |
|
|
19 |
|
|
|
(195 |
) |
|
|
(132 |
) |
(Gains) on sales of investments, net(1) |
|
|
(95 |
) |
|
|
(104 |
) |
|
|
|
|
|
|
|
|
|
|
(61 |
) |
|
|
(91 |
) |
|
|
(34 |
) |
|
|
(13 |
) |
(Gains) losses on sales and impairments of current available-for-sale financial assets, net |
|
|
32 |
|
|
|
(466 |
) |
|
|
30 |
|
|
|
|
|
|
|
2 |
|
|
|
(466 |
) |
|
|
|
|
|
|
|
|
(Income) from investments(1) |
|
|
(223 |
) |
|
|
(569 |
) |
|
|
|
|
|
|
|
|
|
|
(105 |
) |
|
|
(463 |
) |
|
|
(118 |
) |
|
|
(106 |
) |
Other non-cash (income) expenses |
|
|
106 |
|
|
|
372 |
|
|
|
14 |
|
|
|
276 |
|
|
|
103 |
|
|
|
110 |
|
|
|
(11 |
) |
|
|
(14 |
) |
Change in current assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in inventories |
|
|
(986 |
) |
|
|
(2,313 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
(960 |
) |
|
|
(2,321 |
) |
|
|
(26 |
) |
|
|
10 |
|
(Increase) decrease in trade and other receivables |
|
|
(1,183 |
) |
|
|
(1,027 |
) |
|
|
2,343 |
|
|
|
40 |
|
|
|
(3,503 |
) |
|
|
(1,115 |
) |
|
|
(23 |
) |
|
|
48 |
|
(Increase) decrease in other current assets |
|
|
(486 |
) |
|
|
572 |
|
|
|
(161 |
) |
|
|
306 |
|
|
|
(397 |
) |
|
|
79 |
|
|
|
72 |
|
|
|
187 |
|
Increase (decrease) in trade payables |
|
|
1,158 |
|
|
|
279 |
|
|
|
(32 |
) |
|
|
15 |
|
|
|
1,060 |
|
|
|
204 |
|
|
|
130 |
|
|
|
60 |
|
Increase (decrease) in current provisions |
|
|
(258 |
) |
|
|
(34 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
(233 |
) |
|
|
(60 |
) |
|
|
(25 |
) |
|
|
28 |
|
Increase (decrease) in other current liabilities |
|
|
2,858 |
|
|
|
2,053 |
|
|
|
224 |
|
|
|
321 |
|
|
|
2,578 |
|
|
|
1,734 |
|
|
|
56 |
|
|
|
(2 |
) |
Change in other assets and liabilities |
|
|
(883 |
) |
|
|
41 |
|
|
|
(119 |
) |
|
|
(53 |
) |
|
|
(753 |
) |
|
|
119 |
|
|
|
(11 |
) |
|
|
(25 |
) |
Income taxes paid |
|
|
(1,930 |
) |
|
|
(1,191 |
) |
|
|
(39 |
) |
|
|
(94 |
) |
|
|
(1,749 |
) |
|
|
(957 |
) |
|
|
(142 |
) |
|
|
(140 |
) |
Dividends received |
|
|
337 |
|
|
|
378 |
|
|
|
|
|
|
|
|
|
|
|
247 |
|
|
|
299 |
|
|
|
90 |
|
|
|
79 |
|
Interest received |
|
|
757 |
|
|
|
685 |
|
|
|
199 |
|
|
|
180 |
|
|
|
146 |
|
|
|
159 |
|
|
|
412 |
|
|
|
346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities continuing and discontinued operations |
|
|
7,328 |
|
|
|
5,659 |
|
|
|
2,330 |
|
|
|
561 |
|
|
|
3,913 |
|
|
|
4,061 |
|
|
|
1,085 |
|
|
|
1,037 |
|
Net cash provided by operating activities continuing operations |
|
|
9,822 |
|
|
|
5,003 |
|
|
|
2,330 |
|
|
|
561 |
|
|
|
6,407 |
|
|
|
3,405 |
|
|
|
1,085 |
|
|
|
1,037 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible assets and property, plant and equipment |
|
|
(3,751 |
) |
|
|
(4,052 |
) |
|
|
|
|
|
|
|
|
|
|
(2,997 |
) |
|
|
(3,284 |
) |
|
|
(754 |
) |
|
|
(768 |
) |
Acquisitions, net of cash acquired |
|
|
(7,370 |
) |
|
|
(2,055 |
) |
|
|
|
|
|
|
|
|
|
|
(7,370 |
) |
|
|
(2,052 |
) |
|
|
|
|
|
|
(3 |
) |
Purchases of investments(1) |
|
|
(261 |
) |
|
|
(389 |
) |
|
|
|
|
|
|
|
|
|
|
(253 |
) |
|
|
(369 |
) |
|
|
(8 |
) |
|
|
(20 |
) |
Purchases of current available-for-sale financial assets |
|
|
(148 |
) |
|
|
(1,489 |
) |
|
|
|
|
|
|
(1,409 |
) |
|
|
(129 |
) |
|
|
(72 |
) |
|
|
(19 |
) |
|
|
(8 |
) |
(Increase) decrease in receivables from financing activities |
|
|
(907 |
) |
|
|
(469 |
) |
|
|
(2,367 |
) |
|
|
(70 |
) |
|
|
|
|
|
|
|
|
|
|
1,460 |
|
|
|
(399 |
) |
Proceeds from sales of investments, intangibles and property, plant and equipment(1) |
|
|
1,041 |
|
|
|
914 |
|
|
|
|
|
|
|
|
|
|
|
532 |
|
|
|
549 |
|
|
|
509 |
|
|
|
365 |
|
Proceeds from disposals of businesses |
|
|
(380 |
) |
|
|
(260 |
) |
|
|
|
|
|
|
|
|
|
|
(380 |
) |
|
|
(260 |
) |
|
|
|
|
|
|
|
|
Proceeds from sales of current available-for-sale financial assets |
|
|
419 |
|
|
|
3,104 |
|
|
|
365 |
|
|
|
986 |
|
|
|
46 |
|
|
|
2,112 |
|
|
|
8 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities continuing and discontinued operations |
|
|
(11,357 |
) |
|
|
(4,696 |
) |
|
|
(2,002 |
) |
|
|
(493 |
) |
|
|
(10,551 |
) |
|
|
(3,376 |
) |
|
|
1,196 |
|
|
|
(827 |
) |
Net cash provided by (used in) investing activities continuing operations |
|
|
(10,068 |
) |
|
|
(4,315 |
) |
|
|
(2,002 |
) |
|
|
(493 |
) |
|
|
(9,262 |
) |
|
|
(2,995 |
) |
|
|
1,196 |
|
|
|
(827 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock |
|
|
903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of common stock |
|
|
(101 |
) |
|
|
(421 |
) |
|
|
|
|
|
|
|
|
|
|
(101 |
) |
|
|
(421 |
) |
|
|
|
|
|
|
|
|
Proceeds from re-issuance of treasury stock |
|
|
66 |
|
|
|
313 |
|
|
|
|
|
|
|
|
|
|
|
66 |
|
|
|
313 |
|
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt |
|
|
766 |
|
|
|
6,701 |
|
|
|
766 |
|
|
|
6,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of long-term debt (including current maturities of long-term debt) |
|
|
(4,595 |
) |
|
|
(1,710 |
) |
|
|
(4,486 |
) |
|
|
(1,600 |
) |
|
|
(82 |
) |
|
|
(49 |
) |
|
|
(27 |
) |
|
|
(61 |
) |
Change in short-term debt |
|
|
4,386 |
|
|
|
(1,762 |
) |
|
|
4,516 |
|
|
|
(1,244 |
) |
|
|
(80 |
) |
|
|
(419 |
) |
|
|
(50 |
) |
|
|
(99 |
) |
Interest paid |
|
|
(1,169 |
) |
|
|
(596 |
) |
|
|
(969 |
) |
|
|
(388 |
) |
|
|
(131 |
) |
|
|
(141 |
) |
|
|
(69 |
) |
|
|
(67 |
) |
Dividends paid |
|
|
(1,292 |
) |
|
|
(1,201 |
) |
|
|
|
|
|
|
|
|
|
|
(1,292 |
) |
|
|
(1,201 |
) |
|
|
|
|
|
|
|
|
Dividends paid to minority shareholders |
|
|
(151 |
) |
|
|
(118 |
) |
|
|
|
|
|
|
|
|
|
|
(151 |
) |
|
|
(118 |
) |
|
|
|
|
|
|
|
|
Intragroup financing |
|
|
|
|
|
|
|
|
|
|
(6,444 |
) |
|
|
(1,046 |
) |
|
|
8,541 |
|
|
|
1,042 |
|
|
|
(2,097 |
) |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities continuing and discontinued operations |
|
|
(1,187 |
) |
|
|
1,206 |
|
|
|
(6,617 |
) |
|
|
2,423 |
|
|
|
7,673 |
|
|
|
(994 |
) |
|
|
(2,243 |
) |
|
|
(223 |
) |
Net cash provided by (used in) financing activities continuing operations |
|
|
(5,792 |
) |
|
|
1,540 |
|
|
|
(6,617 |
) |
|
|
2,423 |
|
|
|
3,068 |
|
|
|
(660 |
) |
|
|
(2,243 |
) |
|
|
(223 |
) |
Effect of exchange rates on cash and cash equivalents |
|
|
(58 |
) |
|
|
(76 |
) |
|
|
(43 |
) |
|
|
(22 |
) |
|
|
(14 |
) |
|
|
(53 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
(5,274 |
) |
|
|
2,093 |
|
|
|
(6,332 |
) |
|
|
2,469 |
|
|
|
1,021 |
|
|
|
(362 |
) |
|
|
37 |
|
|
|
(14 |
) |
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 |
|
|
4,940 |
|
|
|
10,214 |
|
|
|
2,740 |
|
|
|
9,072 |
|
|
|
2,130 |
|
|
|
1,109 |
|
|
|
70 |
|
|
|
33 |
|
Less: Cash and cash equivalents of discontinued operations at end of period |
|
|
935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents of continuing operations at end of period |
|
|
4,005 |
|
|
|
10,214 |
|
|
|
2,740 |
|
|
|
9,072 |
|
|
|
1,195 |
|
|
|
1,109 |
|
|
|
70 |
|
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 (preliminary and unaudited)
As of September 30, 2007 and 2006
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
reclassifications and |
|
|
|
|
|
|
|
|
|
|
Financing and Real |
|
|
|
Siemens |
|
|
Corporate Treasury |
|
|
Operations |
|
|
Estate |
|
|
|
9/30/07
|
|
|
9/30/06
|
|
|
9/30/07
|
|
|
9/30/06
|
|
|
9/30/07
|
|
|
9/30/06
|
|
|
9/30/07
|
|
|
9/30/06
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
4,005 |
|
|
|
10,214 |
|
|
|
2,740 |
|
|
|
9,072 |
|
|
|
1,195 |
|
|
|
1,109 |
|
|
|
70 |
|
|
|
33 |
|
Available-for-sale financial assets |
|
|
193 |
|
|
|
596 |
|
|
|
|
|
|
|
416 |
|
|
|
162 |
|
|
|
160 |
|
|
|
31 |
|
|
|
20 |
|
Trade and other receivables |
|
|
14,620 |
|
|
|
15,148 |
|
|
|
|
|
|
|
|
|
|
|
12,589 |
|
|
|
10,885 |
|
|
|
2,031 |
|
|
|
4,263 |
|
Other current financial assets |
|
|
2,932 |
|
|
|
2,370 |
|
|
|
366 |
|
|
|
145 |
|
|
|
1,427 |
|
|
|
1,314 |
|
|
|
1,139 |
|
|
|
911 |
|
Intragroup receivables |
|
|
|
|
|
|
|
|
|
|
(10,401 |
) |
|
|
(15,736 |
) |
|
|
10,355 |
|
|
|
15,680 |
|
|
|
46 |
|
|
|
56 |
|
Inventories |
|
|
12,930 |
|
|
|
12,790 |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
|
12,850 |
|
|
|
12,735 |
|
|
|
82 |
|
|
|
57 |
|
Income tax receivables |
|
|
398 |
|
|
|
458 |
|
|
|
1 |
|
|
|
2 |
|
|
|
352 |
|
|
|
445 |
|
|
|
45 |
|
|
|
11 |
|
Other current assets |
|
|
1,322 |
|
|
|
1,274 |
|
|
|
|
|
|
|
48 |
|
|
|
1,183 |
|
|
|
1,122 |
|
|
|
139 |
|
|
|
104 |
|
Assets classified as held for disposal |
|
|
11,532 |
|
|
|
7,164 |
|
|
|
(345 |
) |
|
|
(21 |
) |
|
|
11,843 |
|
|
|
7,180 |
|
|
|
34 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
47,932 |
|
|
|
50,014 |
|
|
|
(7,641 |
) |
|
|
(6,076 |
) |
|
|
51,956 |
|
|
|
50,630 |
|
|
|
3,617 |
|
|
|
5,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
12,501 |
|
|
|
9,689 |
|
|
|
|
|
|
|
|
|
|
|
12,375 |
|
|
|
9,557 |
|
|
|
126 |
|
|
|
132 |
|
Other intangible assets |
|
|
4,619 |
|
|
|
3,385 |
|
|
|
|
|
|
|
|
|
|
|
4,605 |
|
|
|
3,368 |
|
|
|
14 |
|
|
|
17 |
|
Property, plant and equipment |
|
|
10,555 |
|
|
|
12,072 |
|
|
|
|
|
|
|
|
|
|
|
6,896 |
|
|
|
8,310 |
|
|
|
3,659 |
|
|
|
3,762 |
|
Investments accounted for using the equity method |
|
|
7,016 |
|
|
|
2,956 |
|
|
|
|
|
|
|
|
|
|
|
6,791 |
|
|
|
2,738 |
|
|
|
225 |
|
|
|
218 |
|
Other financial assets |
|
|
5,561 |
|
|
|
5,042 |
|
|
|
454 |
|
|
|
215 |
|
|
|
1,353 |
|
|
|
1,232 |
|
|
|
3,754 |
|
|
|
3,595 |
|
Intragroup receivables |
|
|
|
|
|
|
|
|
|
|
(479 |
) |
|
|
(348 |
) |
|
|
479 |
|
|
|
348 |
|
|
|
|
|
|
|
|
|
Deferred tax assets |
|
|
2,594 |
|
|
|
3,860 |
|
|
|
17 |
|
|
|
222 |
|
|
|
2,488 |
|
|
|
3,532 |
|
|
|
89 |
|
|
|
106 |
|
Other assets |
|
|
777 |
|
|
|
713 |
|
|
|
1 |
|
|
|
194 |
|
|
|
715 |
|
|
|
507 |
|
|
|
61 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
91,555 |
|
|
|
87,731 |
|
|
|
(7,648 |
) |
|
|
(5,793 |
) |
|
|
87,658 |
|
|
|
80,222 |
|
|
|
11,545 |
|
|
|
13,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current maturities of long-term debt |
|
|
5,637 |
|
|
|
2,175 |
|
|
|
5,095 |
|
|
|
1,433 |
|
|
|
362 |
|
|
|
530 |
|
|
|
180 |
|
|
|
212 |
|
Trade payables |
|
|
8,382 |
|
|
|
8,443 |
|
|
|
13 |
|
|
|
28 |
|
|
|
7,951 |
|
|
|
8,140 |
|
|
|
418 |
|
|
|
275 |
|
Other current financial liabilities |
|
|
2,553 |
|
|
|
1,035 |
|
|
|
754 |
|
|
|
508 |
|
|
|
1,712 |
|
|
|
483 |
|
|
|
87 |
|
|
|
44 |
|
Intragroup liabilities |
|
|
|
|
|
|
|
|
|
|
(15,170 |
) |
|
|
(16,406 |
) |
|
|
10,551 |
|
|
|
9,886 |
|
|
|
4,619 |
|
|
|
6,520 |
|
Current provisions |
|
|
3,581 |
|
|
|
3,859 |
|
|
|
|
|
|
|
|
|
|
|
3,521 |
|
|
|
3,770 |
|
|
|
60 |
|
|
|
89 |
|
Income tax payables |
|
|
2,141 |
|
|
|
1,558 |
|
|
|
19 |
|
|
|
2 |
|
|
|
2,069 |
|
|
|
1,539 |
|
|
|
53 |
|
|
|
17 |
|
Other current liabilities |
|
|
17,058 |
|
|
|
16,485 |
|
|
|
166 |
|
|
|
227 |
|
|
|
16,663 |
|
|
|
15,974 |
|
|
|
229 |
|
|
|
284 |
|
Liabilities associated with assets classified as held for disposal |
|
|
4,542 |
|
|
|
5,385 |
|
|
|
(4,211 |
) |
|
|
(16 |
) |
|
|
8,753 |
|
|
|
5,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
43,894 |
|
|
|
38,940 |
|
|
|
(13,334 |
) |
|
|
(14,224 |
) |
|
|
51,582 |
|
|
|
45,723 |
|
|
|
5,646 |
|
|
|
7,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
9,860 |
|
|
|
13,122 |
|
|
|
8,901 |
|
|
|
11,946 |
|
|
|
548 |
|
|
|
744 |
|
|
|
411 |
|
|
|
432 |
|
Pension plans and similar commitments |
|
|
2,780 |
|
|
|
5,083 |
|
|
|
|
|
|
|
|
|
|
|
2,779 |
|
|
|
5,081 |
|
|
|
1 |
|
|
|
2 |
|
Deferred tax liabilities |
|
|
580 |
|
|
|
411 |
|
|
|
(379 |
) |
|
|
(397 |
) |
|
|
561 |
|
|
|
404 |
|
|
|
398 |
|
|
|
404 |
|
Provisions |
|
|
2,103 |
|
|
|
1,858 |
|
|
|
|
|
|
|
|
|
|
|
1,983 |
|
|
|
1,761 |
|
|
|
120 |
|
|
|
97 |
|
Other financial liabilities |
|
|
411 |
|
|
|
248 |
|
|
|
120 |
|
|
|
19 |
|
|
|
246 |
|
|
|
177 |
|
|
|
45 |
|
|
|
52 |
|
Other liabilities |
|
|
2,300 |
|
|
|
2,174 |
|
|
|
9 |
|
|
|
41 |
|
|
|
2,214 |
|
|
|
2,054 |
|
|
|
77 |
|
|
|
79 |
|
Intragroup liabilities |
|
|
|
|
|
|
|
|
|
|
(2,965 |
) |
|
|
(3,178 |
) |
|
|
79 |
|
|
|
434 |
|
|
|
2,886 |
|
|
|
2,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
61,928 |
|
|
|
61,836 |
|
|
|
(7,648 |
) |
|
|
(5,793 |
) |
|
|
59,992 |
|
|
|
56,378 |
|
|
|
9,584 |
|
|
|
11,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, no par value(1) |
|
|
2,743 |
|
|
|
2,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital |
|
|
6,080 |
|
|
|
5,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings |
|
|
20,453 |
|
|
|
16,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other components of equity |
|
|
(280 |
) |
|
|
156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Treasury shares, at cost(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity attributable to shareholders of Siemens AG |
|
|
28,996 |
|
|
|
25,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
631 |
|
|
|
702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
29,627 |
|
|
|
25,895 |
|
|
|
|
|
|
|
|
|
|
|
27,666 |
|
|
|
23,844 |
|
|
|
1,961 |
|
|
|
2,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
91,555 |
|
|
|
87,731 |
|
|
|
(7,648 |
) |
|
|
(5,793 |
) |
|
|
87,658 |
|
|
|
80,222 |
|
|
|
11,545 |
|
|
|
13,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Authorized: 1,137,913,421 and 1,116,087,241 shares, respectively. |
|
|
|
Issued: 914,203,421 and 891,087,241 shares, respectively. |
|
(2) |
|
383 and 415 shares, respectively. |
SUPPLEMENTAL
DATA
SIEMENS
SEGMENT INFORMATION ANALYSIS (I) (preliminary and unaudited)
Group profit / Income before income taxes, margin developments, growth rates for Revenue and New orders
For the three months ended September 30, 2007 and 2006
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group profit |
|
|
|
New orders
|
|
|
Revenue
|
|
|
Group profit
|
|
|
margin
|
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
therein
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
therein
|
|
|
2007
|
|
|
2006
|
|
|
%Change
|
|
|
2007
|
|
|
2006
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
|
Adjusted
|
|
|
Currency*
|
|
|
Portfolio**
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
|
Adjusted
|
|
|
Currency*
|
|
|
Portfolio**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens IT Solutions and Services (SIS) |
|
|
1,595 |
|
|
|
1,266 |
|
|
|
26 |
% |
|
|
27 |
% |
|
|
0 |
% |
|
|
(1 |
)% |
|
|
1,438 |
|
|
|
1,424 |
|
|
|
1 |
% |
|
|
2 |
% |
|
|
0 |
% |
|
|
(1 |
)% |
|
|
80 |
|
|
|
(230 |
) |
|
|
|
|
|
|
5.6 |
% |
|
|
(16.2 |
)% |
Automation and Drives (A&D) |
|
|
4,351 |
|
|
|
3,520 |
|
|
|
24 |
% |
|
|
18 |
% |
|
|
(1 |
)% |
|
|
7 |
% |
|
|
4,403 |
|
|
|
3,609 |
|
|
|
22 |
% |
|
|
16 |
% |
|
|
(1 |
)% |
|
|
7 |
% |
|
|
607 |
|
|
|
427 |
|
|
|
42 |
% |
|
|
13.8 |
% |
|
|
11.8 |
% |
Industrial Solutions and Services (I&S) |
|
|
2,168 |
|
|
|
2,129 |
|
|
|
2 |
% |
|
|
3 |
% |
|
|
(2 |
)% |
|
|
1 |
% |
|
|
2,500 |
|
|
|
2,477 |
|
|
|
1 |
% |
|
|
2 |
% |
|
|
(2 |
)% |
|
|
1 |
% |
|
|
130 |
|
|
|
61 |
|
|
|
113 |
% |
|
|
5.2 |
% |
|
|
2.5 |
% |
Siemens Building Technologies (SBT) |
|
|
1,331 |
|
|
|
1,402 |
|
|
|
(5 |
)% |
|
|
(2 |
)% |
|
|
(3 |
)% |
|
|
0 |
% |
|
|
1,353 |
|
|
|
1,403 |
|
|
|
(4 |
)% |
|
|
(1 |
)% |
|
|
(3 |
)% |
|
|
0 |
% |
|
|
102 |
|
|
|
77 |
|
|
|
32 |
% |
|
|
7.5 |
% |
|
|
5.5 |
% |
Power Generation (PG) |
|
|
4,012 |
|
|
|
2,738 |
|
|
|
47 |
% |
|
|
46 |
% |
|
|
(2 |
)% |
|
|
3 |
% |
|
|
3,533 |
|
|
|
2,924 |
|
|
|
21 |
% |
|
|
21 |
% |
|
|
(3 |
)% |
|
|
3 |
% |
|
|
358 |
|
|
|
122 |
|
|
|
193 |
% |
|
|
10.1 |
% |
|
|
4.2 |
% |
Power Transmission and Distribution (PTD) |
|
|
1,882 |
|
|
|
1,683 |
|
|
|
12 |
% |
|
|
14 |
% |
|
|
(2 |
)% |
|
|
0 |
% |
|
|
2,283 |
|
|
|
1,839 |
|
|
|
24 |
% |
|
|
25 |
% |
|
|
(1 |
)% |
|
|
0 |
% |
|
|
225 |
|
|
|
54 |
|
|
|
317 |
% |
|
|
9.9 |
% |
|
|
2.9 |
% |
Transportation Systems (TS) |
|
|
2,189 |
|
|
|
743 |
|
|
|
195 |
% |
|
|
202 |
% |
|
|
(1 |
)% |
|
|
(6 |
)% |
|
|
1,212 |
|
|
|
1,446 |
|
|
|
(16 |
)% |
|
|
(12 |
)% |
|
|
(1 |
)% |
|
|
(3 |
)% |
|
|
62 |
|
|
|
19 |
|
|
|
226 |
% |
|
|
5.1 |
% |
|
|
1.3 |
% |
Medical Solutions (Med) |
|
|
2,999 |
|
|
|
2,994 |
|
|
|
0 |
% |
|
|
(11 |
)% |
|
|
(4 |
)% |
|
|
15 |
% |
|
|
2,848 |
|
|
|
2,359 |
|
|
|
21 |
% |
|
|
6 |
% |
|
|
(4 |
)% |
|
|
19 |
% |
|
|
380 |
|
|
|
266 |
|
|
|
43 |
% |
|
|
13.3 |
% |
|
|
11.3 |
% |
Osram |
|
|
1,203 |
|
|
|
1,110 |
|
|
|
8 |
% |
|
|
12 |
% |
|
|
(4 |
)% |
|
|
0 |
% |
|
|
1,203 |
|
|
|
1,110 |
|
|
|
8 |
% |
|
|
12 |
% |
|
|
(4 |
)% |
|
|
0 |
% |
|
|
128 |
|
|
|
86 |
|
|
|
49 |
% |
|
|
10.6 |
% |
|
|
7.7 |
% |
Strategic Equity Investments (SEI) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11 |
) |
|
|
75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
Return on equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing and Real Estate Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens Financial Services (SFS) |
|
|
198 |
|
|
|
169 |
|
|
|
17 |
% |
|
|
19 |
% |
|
|
(2 |
)% |
|
|
0 |
% |
|
|
198 |
|
|
|
169 |
|
|
|
17 |
% |
|
|
19 |
% |
|
|
(2 |
)% |
|
|
0 |
% |
|
|
52 |
|
|
|
120 |
|
|
|
(57 |
)% |
|
|
20.0 |
% |
|
|
42.4 |
% |
Siemens Real Estate (SRE) |
|
|
435 |
|
|
|
446 |
|
|
|
(2 |
)% |
|
|
(2 |
)% |
|
|
(1 |
)% |
|
|
1 |
% |
|
|
435 |
|
|
|
446 |
|
|
|
(2 |
)% |
|
|
(2 |
)% |
|
|
(1 |
)% |
|
|
1 |
% |
|
|
48 |
|
|
|
13 |
|
|
|
269 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the fiscal years ended September 30, 2007 and 2006
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group profit |
|
|
|
New orders
|
|
|
Revenue
|
|
|
Group profit
|
|
|
margin
|
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
therein
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
therein
|
|
|
2007
|
|
|
2006
|
|
|
%Change
|
|
|
2007
|
|
|
2006
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
|
Adjusted
|
|
|
Currency*
|
|
|
Portfolio**
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
|
Adjusted
|
|
|
Currency*
|
|
|
Portfolio**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens IT Solutions and Services (SIS) |
|
|
5,156 |
|
|
|
5,574 |
|
|
|
(7 |
)% |
|
|
5 |
% |
|
|
(1 |
)% |
|
|
(11 |
)% |
|
|
5,360 |
|
|
|
5,693 |
|
|
|
(6 |
)% |
|
|
5 |
% |
|
|
(1 |
)% |
|
|
(10 |
)% |
|
|
252 |
|
|
|
(731 |
) |
|
|
|
|
|
|
4.7 |
% |
|
|
(12.8 |
)% |
Automation and Drives (A&D) |
|
|
16,794 |
|
|
|
14,312 |
|
|
|
17 |
% |
|
|
16 |
% |
|
|
(2 |
)% |
|
|
3 |
% |
|
|
15,389 |
|
|
|
13,041 |
|
|
|
18 |
% |
|
|
16 |
% |
|
|
(2 |
)% |
|
|
4 |
% |
|
|
2,090 |
|
|
|
1,575 |
|
|
|
33 |
% |
|
|
13.6 |
% |
|
|
12.1 |
% |
Industrial Solutions and Services (I&S) |
|
|
10,161 |
|
|
|
9,025 |
|
|
|
13 |
% |
|
|
15 |
% |
|
|
(3 |
)% |
|
|
1 |
% |
|
|
8,894 |
|
|
|
8,819 |
|
|
|
1 |
% |
|
|
3 |
% |
|
|
(3 |
)% |
|
|
1 |
% |
|
|
415 |
|
|
|
282 |
|
|
|
47 |
% |
|
|
4.7 |
% |
|
|
3.2 |
% |
Siemens Building Technologies (SBT) |
|
|
5,350 |
|
|
|
5,235 |
|
|
|
2 |
% |
|
|
5 |
% |
|
|
(4 |
)% |
|
|
1 |
% |
|
|
5,062 |
|
|
|
4,796 |
|
|
|
6 |
% |
|
|
8 |
% |
|
|
(3 |
)% |
|
|
1 |
% |
|
|
354 |
|
|
|
223 |
|
|
|
59 |
% |
|
|
7.0 |
% |
|
|
4.6 |
% |
Power Generation (PG) |
|
|
17,988 |
|
|
|
12,532 |
|
|
|
44 |
% |
|
|
43 |
% |
|
|
(3 |
)% |
|
|
4 |
% |
|
|
12,194 |
|
|
|
10,086 |
|
|
|
21 |
% |
|
|
20 |
% |
|
|
(3 |
)% |
|
|
4 |
% |
|
|
1,147 |
|
|
|
779 |
|
|
|
47 |
% |
|
|
9.4 |
% |
|
|
7.7 |
% |
Power Transmission and Distribution (PTD) |
|
|
9,896 |
|
|
|
8,028 |
|
|
|
23 |
% |
|
|
27 |
% |
|
|
(4 |
)% |
|
|
0 |
% |
|
|
7,689 |
|
|
|
6,509 |
|
|
|
18 |
% |
|
|
21 |
% |
|
|
(3 |
)% |
|
|
0 |
% |
|
|
650 |
|
|
|
315 |
|
|
|
106 |
% |
|
|
8.5 |
% |
|
|
4.8 |
% |
Transportation Systems (TS) |
|
|
4,780 |
|
|
|
6,173 |
|
|
|
(23 |
)% |
|
|
(20 |
)% |
|
|
(1 |
)% |
|
|
(2 |
)% |
|
|
4,452 |
|
|
|
4,493 |
|
|
|
(1 |
)% |
|
|
2 |
% |
|
|
(1 |
)% |
|
|
(2 |
)% |
|
|
191 |
|
|
|
72 |
|
|
|
165 |
% |
|
|
4.3 |
% |
|
|
1.6 |
% |
Medical Solutions (Med) |
|
|
10,271 |
|
|
|
9,334 |
|
|
|
10 |
% |
|
|
(2 |
)% |
|
|
(5 |
)% |
|
|
17 |
% |
|
|
9,851 |
|
|
|
8,227 |
|
|
|
20 |
% |
|
|
6 |
% |
|
|
(5 |
)% |
|
|
19 |
% |
|
|
1,323 |
|
|
|
988 |
|
|
|
34 |
% |
|
|
13.4 |
% |
|
|
12.0 |
% |
Osram |
|
|
4,690 |
|
|
|
4,563 |
|
|
|
3 |
% |
|
|
7 |
% |
|
|
(4 |
)% |
|
|
0 |
% |
|
|
4,690 |
|
|
|
4,563 |
|
|
|
3 |
% |
|
|
7 |
% |
|
|
(4 |
)% |
|
|
0 |
% |
|
|
492 |
|
|
|
456 |
|
|
|
8 |
% |
|
|
10.5 |
% |
|
|
10.0 |
% |
Strategic Equity Investments (SEI) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(161 |
) |
|
|
225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
Return on equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing and Real Estate Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens Financial Services (SFS) |
|
|
721 |
|
|
|
645 |
|
|
|
12 |
% |
|
|
15 |
% |
|
|
(2 |
)% |
|
|
(1 |
)% |
|
|
720 |
|
|
|
645 |
|
|
|
12 |
% |
|
|
15 |
% |
|
|
(2 |
)% |
|
|
(1 |
)% |
|
|
329 |
|
|
|
306 |
|
|
|
8 |
% |
|
|
31.6 |
% |
|
|
27.1 |
% |
Siemens Real Estate (SRE) |
|
|
1,686 |
|
|
|
1,705 |
|
|
|
(1 |
)% |
|
|
(1 |
)% |
|
|
(1 |
)% |
|
|
1 |
% |
|
|
1,686 |
|
|
|
1,705 |
|
|
|
(1 |
)% |
|
|
(1 |
)% |
|
|
(1 |
)% |
|
|
1 |
% |
|
|
228 |
|
|
|
115 |
|
|
|
98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Currency translation effects |
|
** |
|
Portfolio effects |
SUPPLEMENTAL
DATA
SIEMENS
SEGMENT INFORMATION ANALYSIS (II) (preliminary and unaudited)
Reconciliation from Group profit /Income before income taxes to EBITDA (adjusted)
For the three months ended September 30, 2007 and 2006
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and impairments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
accounted for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of property, plant |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
using the equity |
|
|
Financial income |
|
|
EBIT |
|
|
|
|
|
|
|
|
|
|
and equipment |
|
|
EBITDA |
|
|
|
Group profit
|
|
method, net(1)
|
|
(expense), net(2)
|
|
(adjusted)(3)
|
|
Amortization(4)
|
|
and goodwill(5)
|
|
(adjusted)
|
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens IT Solutions and Services (SIS) |
|
|
80 |
|
|
|
(230 |
) |
|
|
1 |
|
|
|
(1 |
) |
|
|
(5 |
) |
|
|
1 |
|
|
|
84 |
|
|
|
(230 |
) |
|
|
15 |
|
|
|
13 |
|
|
|
60 |
|
|
|
53 |
|
|
|
159 |
|
|
|
(164 |
) |
Automation and Drives (A&D) |
|
|
607 |
|
|
|
427 |
|
|
|
(5 |
) |
|
|
|
|
|
|
8 |
|
|
|
2 |
|
|
|
604 |
|
|
|
425 |
|
|
|
57 |
|
|
|
20 |
|
|
|
74 |
|
|
|
60 |
|
|
|
735 |
|
|
|
505 |
|
Industrial Solutions and Services (I&S) |
|
|
130 |
|
|
|
61 |
|
|
|
3 |
|
|
|
5 |
|
|
|
(3 |
) |
|
|
(3 |
) |
|
|
130 |
|
|
|
59 |
|
|
|
7 |
|
|
|
10 |
|
|
|
20 |
|
|
|
22 |
|
|
|
157 |
|
|
|
91 |
|
Siemens Building Technologies (SBT) |
|
|
102 |
|
|
|
77 |
|
|
|
1 |
|
|
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
102 |
|
|
|
78 |
|
|
|
18 |
|
|
|
15 |
|
|
|
15 |
|
|
|
13 |
|
|
|
135 |
|
|
|
106 |
|
Power Generation (PG) |
|
|
358 |
|
|
|
122 |
|
|
|
(26 |
) |
|
|
(36 |
) |
|
|
4 |
|
|
|
(3 |
) |
|
|
380 |
|
|
|
161 |
|
|
|
16 |
|
|
|
15 |
|
|
|
47 |
|
|
|
45 |
|
|
|
443 |
|
|
|
221 |
|
Power Transmission and Distribution (PTD) |
|
|
225 |
|
|
|
54 |
|
|
|
5 |
|
|
|
4 |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
221 |
|
|
|
51 |
|
|
|
7 |
|
|
|
11 |
|
|
|
24 |
|
|
|
21 |
|
|
|
252 |
|
|
|
83 |
|
Transportation Systems (TS) |
|
|
62 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
|
(3 |
) |
|
|
64 |
|
|
|
22 |
|
|
|
1 |
|
|
|
3 |
|
|
|
16 |
|
|
|
16 |
|
|
|
81 |
|
|
|
41 |
|
Medical Solutions (Med) |
|
|
380 |
|
|
|
266 |
|
|
|
8 |
|
|
|
8 |
|
|
|
7 |
|
|
|
3 |
|
|
|
365 |
|
|
|
255 |
|
|
|
60 |
|
|
|
66 |
|
|
|
60 |
|
|
|
36 |
|
|
|
485 |
|
|
|
357 |
|
Osram |
|
|
128 |
|
|
|
86 |
|
|
|
3 |
|
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
|
|
122 |
|
|
|
84 |
|
|
|
6 |
|
|
|
6 |
|
|
|
64 |
|
|
|
60 |
|
|
|
192 |
|
|
|
150 |
|
Strategic Equity Investments (SEI) |
|
|
(11 |
) |
|
|
75 |
|
|
|
(11 |
) |
|
|
75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operations |
|
|
(71 |
) |
|
|
(208 |
) |
|
|
6 |
|
|
|
|
|
|
|
(1 |
) |
|
|
2 |
|
|
|
(76 |
) |
|
|
(210 |
) |
|
|
15 |
|
|
|
14 |
|
|
|
18 |
|
|
|
7 |
|
|
|
(43 |
) |
|
|
(189 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations Groups |
|
|
1,990 |
|
|
|
749 |
|
|
|
(15 |
) |
|
|
56 |
|
|
|
9 |
|
|
|
(2 |
) |
|
|
1,996 |
|
|
|
695 |
|
|
|
202 |
|
|
|
173 |
|
|
|
398 |
|
|
|
333 |
|
|
|
2,596 |
|
|
|
1,201 |
|
Reconciliation to financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate items, pensions and eliminations |
|
|
(451 |
) |
|
|
(493 |
) |
|
|
3 |
|
|
|
(22 |
) |
|
|
32 |
|
|
|
(105 |
) |
|
|
(486 |
) |
|
|
(366 |
) |
|
|
112 |
|
|
|
12 |
|
|
|
(9 |
) |
|
|
2 |
|
|
|
(383 |
) |
|
|
(352 |
) |
Other interest income/expense |
|
|
(117 |
) |
|
|
(77 |
) |
|
|
|
|
|
|
|
|
|
|
(117 |
) |
|
|
(77 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations |
|
|
1,422 |
|
|
|
179 |
|
|
|
(12 |
) |
|
|
34 |
|
|
|
(76 |
) |
|
|
(184 |
) |
|
|
1,510 |
|
|
|
329 |
|
|
|
314 |
|
|
|
185 |
|
|
|
389 |
|
|
|
335 |
|
|
|
2,213 |
|
|
|
849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing and Real Estate Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens Financial Services (SFS) |
|
|
52 |
|
|
|
120 |
|
|
|
14 |
|
|
|
15 |
|
|
|
34 |
|
|
|
124 |
|
|
|
4 |
|
|
|
(19 |
) |
|
|
1 |
|
|
|
1 |
|
|
|
83 |
|
|
|
64 |
|
|
|
88 |
|
|
|
46 |
|
Siemens Real Estate (SRE) |
|
|
48 |
|
|
|
13 |
|
|
|
1 |
|
|
|
(4 |
) |
|
|
(29 |
) |
|
|
(18 |
) |
|
|
76 |
|
|
|
35 |
|
|
|
1 |
|
|
|
1 |
|
|
|
46 |
|
|
|
51 |
|
|
|
123 |
|
|
|
87 |
|
Total Financing and Real Estate |
|
|
100 |
|
|
|
133 |
|
|
|
15 |
|
|
|
11 |
|
|
|
5 |
|
|
|
106 |
|
|
|
80 |
|
|
|
16 |
|
|
|
2 |
|
|
|
2 |
|
|
|
129 |
|
|
|
115 |
|
|
|
211 |
|
|
|
133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations, reclassifications and Corporate Treasury |
|
|
19 |
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
54 |
|
|
|
11 |
|
|
|
(35 |
) |
|
|
(15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35 |
) |
|
|
(15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
1,541 |
|
|
|
308 |
|
|
|
3 |
|
|
|
45 |
|
|
|
(17 |
) |
|
|
(67 |
) |
|
|
1,555 |
|
|
|
330 |
|
|
|
316 |
|
|
|
187 |
|
|
|
518 |
|
|
|
450 |
|
|
|
2,389 |
|
|
|
967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Includes impairment of investments accounted for using the equity method. |
|
(2) |
|
Includes impairment of non-current available-for-sale financial assets. |
|
(3) |
|
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. |
|
(4) |
|
Amortization and impairments of intangible assets other than goodwill. |
|
(5) |
|
Includes impairments of goodwill of . |
SUPPLEMENTAL
DATA
SIEMENS
SEGMENT INFORMATION ANALYSIS (II) (preliminary and unaudited)
Reconciliation from Group profit /Income before income taxes to EBITDA (adjusted)
For the fiscal years ended September 30, 2007 and 2006
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and impairments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
accounted for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of property, plant |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
using the equity |
|
|
Financial income |
|
|
EBIT |
|
|
|
|
|
|
|
|
|
|
and equipment |
|
|
EBITDA |
|
|
|
Group profit |
|
|
method, net(1) |
|
|
(expense), net(2) |
|
|
(adjusted)(3) |
|
|
Amortization(4) |
|
|
and goodwill(5) |
|
|
(adjusted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens IT Solutions and Services (SIS) |
|
|
252 |
|
|
|
(731 |
) |
|
|
10 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
243 |
|
|
|
(733 |
) |
|
|
59 |
|
|
|
59 |
|
|
|
223 |
|
|
|
233 |
|
|
|
525 |
|
|
|
(441 |
) |
Automation and Drives (A&D) |
|
|
2,090 |
|
|
|
1,575 |
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
4 |
|
|
|
2,091 |
|
|
|
1,571 |
|
|
|
134 |
|
|
|
78 |
|
|
|
240 |
|
|
|
218 |
|
|
|
2,465 |
|
|
|
1,867 |
|
Industrial Solutions and Services (I&S) |
|
|
415 |
|
|
|
282 |
|
|
|
15 |
|
|
|
9 |
|
|
|
(6 |
) |
|
|
3 |
|
|
|
406 |
|
|
|
270 |
|
|
|
35 |
|
|
|
47 |
|
|
|
73 |
|
|
|
76 |
|
|
|
514 |
|
|
|
393 |
|
Siemens Building Technologies (SBT) |
|
|
354 |
|
|
|
223 |
|
|
|
1 |
|
|
|
2 |
|
|
|
(3 |
) |
|
|
(3 |
) |
|
|
356 |
|
|
|
224 |
|
|
|
61 |
|
|
|
55 |
|
|
|
66 |
|
|
|
54 |
|
|
|
483 |
|
|
|
333 |
|
Power Generation (PG) |
|
|
1,147 |
|
|
|
779 |
|
|
|
(2 |
) |
|
|
36 |
|
|
|
(1 |
) |
|
|
12 |
|
|
|
1,150 |
|
|
|
731 |
|
|
|
66 |
|
|
|
65 |
|
|
|
163 |
|
|
|
151 |
|
|
|
1,379 |
|
|
|
947 |
|
Power Transmission and Distribution (PTD) |
|
|
650 |
|
|
|
315 |
|
|
|
19 |
|
|
|
15 |
|
|
|
11 |
|
|
|
(3 |
) |
|
|
620 |
|
|
|
303 |
|
|
|
27 |
|
|
|
47 |
|
|
|
83 |
|
|
|
72 |
|
|
|
730 |
|
|
|
422 |
|
Transportation Systems (TS) |
|
|
191 |
|
|
|
72 |
|
|
|
1 |
|
|
|
1 |
|
|
|
(8 |
) |
|
|
(7 |
) |
|
|
198 |
|
|
|
78 |
|
|
|
5 |
|
|
|
6 |
|
|
|
53 |
|
|
|
51 |
|
|
|
256 |
|
|
|
135 |
|
Medical Solutions (Med) |
|
|
1,323 |
|
|
|
988 |
|
|
|
60 |
|
|
|
27 |
|
|
|
34 |
|
|
|
4 |
|
|
|
1,229 |
|
|
|
957 |
|
|
|
217 |
|
|
|
156 |
|
|
|
221 |
|
|
|
128 |
|
|
|
1,667 |
|
|
|
1,241 |
|
Osram |
|
|
492 |
|
|
|
456 |
|
|
|
5 |
|
|
|
1 |
|
|
|
6 |
|
|
|
7 |
|
|
|
481 |
|
|
|
448 |
|
|
|
28 |
|
|
|
30 |
|
|
|
227 |
|
|
|
231 |
|
|
|
736 |
|
|
|
709 |
|
Strategic Equity Investments (SEI) |
|
|
(161 |
) |
|
|
225 |
|
|
|
(161 |
) |
|
|
225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operations |
|
|
(193 |
) |
|
|
(317 |
) |
|
|
24 |
|
|
|
25 |
|
|
|
|
|
|
|
18 |
|
|
|
(217 |
) |
|
|
(360 |
) |
|
|
50 |
|
|
|
38 |
|
|
|
128 |
|
|
|
83 |
|
|
|
(39 |
) |
|
|
(239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations Groups |
|
|
6,560 |
|
|
|
3,867 |
|
|
|
(28 |
) |
|
|
342 |
|
|
|
31 |
|
|
|
36 |
|
|
|
6,557 |
|
|
|
3,489 |
|
|
|
682 |
|
|
|
581 |
|
|
|
1,477 |
|
|
|
1,297 |
|
|
|
8,716 |
|
|
|
5,367 |
|
Reconciliation to financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate items, pensions and eliminations |
|
|
(1,672 |
) |
|
|
(527 |
) |
|
|
67 |
|
|
|
9 |
|
|
|
61 |
|
|
|
298 |
|
|
|
(1,800 |
) |
|
|
(834 |
) |
|
|
120 |
|
|
|
20 |
|
|
|
(32 |
) |
|
|
(16 |
) |
|
|
(1,712 |
) |
|
|
(830 |
) |
Other interest income/expense |
|
|
(497 |
) |
|
|
(325 |
) |
|
|
|
|
|
|
|
|
|
|
(497 |
) |
|
|
(325 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations |
|
|
4,391 |
|
|
|
3,015 |
|
|
|
39 |
|
|
|
351 |
|
|
|
(405 |
) |
|
|
9 |
|
|
|
4,757 |
|
|
|
2,655 |
|
|
|
802 |
|
|
|
601 |
|
|
|
1,445 |
|
|
|
1,281 |
|
|
|
7,004 |
|
|
|
4,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing and Real Estate Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens Financial Services (SFS) |
|
|
329 |
|
|
|
306 |
|
|
|
59 |
|
|
|
57 |
|
|
|
256 |
|
|
|
264 |
|
|
|
14 |
|
|
|
(15 |
) |
|
|
5 |
|
|
|
5 |
|
|
|
272 |
|
|
|
236 |
|
|
|
291 |
|
|
|
226 |
|
Siemens Real Estate (SRE) |
|
|
228 |
|
|
|
115 |
|
|
|
10 |
|
|
|
(4 |
) |
|
|
(98 |
) |
|
|
(84 |
) |
|
|
316 |
|
|
|
203 |
|
|
|
1 |
|
|
|
1 |
|
|
|
160 |
|
|
|
190 |
|
|
|
477 |
|
|
|
394 |
|
Total Financing and Real Estate |
|
|
557 |
|
|
|
421 |
|
|
|
69 |
|
|
|
53 |
|
|
|
158 |
|
|
|
180 |
|
|
|
330 |
|
|
|
188 |
|
|
|
6 |
|
|
|
6 |
|
|
|
432 |
|
|
|
426 |
|
|
|
768 |
|
|
|
620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations, reclassifications and Corporate Treasury |
|
|
153 |
|
|
|
(18 |
) |
|
|
|
|
|
|
|
|
|
|
239 |
|
|
|
65 |
|
|
|
(86 |
) |
|
|
(83 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(86 |
) |
|
|
(83 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
5,101 |
|
|
|
3,418 |
|
|
|
108 |
|
|
|
404 |
|
|
|
(8 |
) |
|
|
254 |
|
|
|
5,001 |
|
|
|
2,760 |
|
|
|
808 |
|
|
|
607 |
|
|
|
1,877 |
|
|
|
1,707 |
|
|
|
7,686 |
|
|
|
5,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Includes impairment of investments accounted for using the equity method. |
|
(2) |
|
Includes impairment of non-current available-for-sale financial assets. |
|
(3) |
|
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. |
|
(4) |
|
Amortization and impairments of intangible assets other than goodwill. |
|
(5) |
|
Includes impairments of goodwill of 60. |
SUPPLEMENTAL
DATA
SIEMENS
SEGMENT INFORMATION ANALYSIS (III) (preliminary and unaudited)
External revenue of Groups by regions
For the three months ended September 30, 2007 and 2006
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue (location of customer) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa, Near and |
|
|
|
|
|
|
Germany |
|
|
(other than Germany) |
|
|
Americas |
|
|
Asia-Pacific |
|
|
Middle East, C.I.S. |
|
|
Total |
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
Operations Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens IT Solutions and Services (SIS) |
|
|
399 |
|
|
|
406 |
|
|
|
(2 |
)% |
|
|
469 |
|
|
|
492 |
|
|
|
(5 |
)% |
|
|
121 |
|
|
|
126 |
|
|
|
(4 |
)% |
|
|
33 |
|
|
|
27 |
|
|
|
22 |
% |
|
|
19 |
|
|
|
15 |
|
|
|
27 |
% |
|
|
1,041 |
|
|
|
1,066 |
|
|
|
(2 |
)% |
Automation and Drives (A&D) |
|
|
1,129 |
|
|
|
899 |
|
|
|
26 |
% |
|
|
1,118 |
|
|
|
933 |
|
|
|
20 |
% |
|
|
772 |
|
|
|
664 |
|
|
|
16 |
% |
|
|
762 |
|
|
|
576 |
|
|
|
32 |
% |
|
|
120 |
|
|
|
107 |
|
|
|
12 |
% |
|
|
3,901 |
|
|
|
3,179 |
|
|
|
23 |
% |
Industrial Solutions and Services (I&S) |
|
|
277 |
|
|
|
296 |
|
|
|
(6 |
)% |
|
|
598 |
|
|
|
652 |
|
|
|
(8 |
)% |
|
|
668 |
|
|
|
686 |
|
|
|
(3 |
)% |
|
|
396 |
|
|
|
304 |
|
|
|
30 |
% |
|
|
245 |
|
|
|
253 |
|
|
|
(3 |
)% |
|
|
2,184 |
|
|
|
2,191 |
|
|
|
(0 |
)% |
Siemens Building Technologies (SBT) |
|
|
251 |
|
|
|
262 |
|
|
|
(4 |
)% |
|
|
491 |
|
|
|
502 |
|
|
|
(2 |
)% |
|
|
464 |
|
|
|
486 |
|
|
|
(5 |
)% |
|
|
76 |
|
|
|
71 |
|
|
|
7 |
% |
|
|
25 |
|
|
|
42 |
|
|
|
(40 |
)% |
|
|
1,307 |
|
|
|
1,363 |
|
|
|
(4 |
)% |
Power Generation (PG) |
|
|
301 |
|
|
|
411 |
|
|
|
(27 |
)% |
|
|
972 |
|
|
|
646 |
|
|
|
50 |
% |
|
|
1,025 |
|
|
|
830 |
|
|
|
23 |
% |
|
|
473 |
|
|
|
429 |
|
|
|
10 |
% |
|
|
757 |
|
|
|
607 |
|
|
|
25 |
% |
|
|
3,528 |
|
|
|
2,923 |
|
|
|
21 |
% |
Power Transmission and Distribution (PTD) |
|
|
182 |
|
|
|
132 |
|
|
|
38 |
% |
|
|
552 |
|
|
|
442 |
|
|
|
25 |
% |
|
|
408 |
|
|
|
386 |
|
|
|
6 |
% |
|
|
456 |
|
|
|
402 |
|
|
|
13 |
% |
|
|
495 |
|
|
|
335 |
|
|
|
48 |
% |
|
|
2,093 |
|
|
|
1,697 |
|
|
|
23 |
% |
Transportation Systems (TS) |
|
|
171 |
|
|
|
230 |
|
|
|
(26 |
)% |
|
|
617 |
|
|
|
679 |
|
|
|
(9 |
)% |
|
|
136 |
|
|
|
263 |
|
|
|
(48 |
)% |
|
|
239 |
|
|
|
217 |
|
|
|
10 |
% |
|
|
41 |
|
|
|
47 |
|
|
|
(13 |
)% |
|
|
1,204 |
|
|
|
1,436 |
|
|
|
(16 |
)% |
Medical Solutions (Med) |
|
|
290 |
|
|
|
210 |
|
|
|
38 |
% |
|
|
647 |
|
|
|
527 |
|
|
|
23 |
% |
|
|
1,327 |
|
|
|
1,136 |
|
|
|
17 |
% |
|
|
435 |
|
|
|
343 |
|
|
|
27 |
% |
|
|
134 |
|
|
|
114 |
|
|
|
18 |
% |
|
|
2,833 |
|
|
|
2,330 |
|
|
|
22 |
% |
Osram |
|
|
131 |
|
|
|
120 |
|
|
|
9 |
% |
|
|
284 |
|
|
|
260 |
|
|
|
9 |
% |
|
|
504 |
|
|
|
486 |
|
|
|
4 |
% |
|
|
230 |
|
|
|
197 |
|
|
|
17 |
% |
|
|
50 |
|
|
|
44 |
|
|
|
14 |
% |
|
|
1,199 |
|
|
|
1,107 |
|
|
|
8 |
% |
Reconciliation to Siemens |
|
|
249 |
|
|
|
432 |
|
|
|
(42 |
)% |
|
|
482 |
|
|
|
449 |
|
|
|
7 |
% |
|
|
106 |
|
|
|
173 |
|
|
|
(39 |
)% |
|
|
33 |
|
|
|
65 |
|
|
|
(49 |
)% |
|
|
41 |
|
|
|
60 |
|
|
|
(32 |
)% |
|
|
911 |
|
|
|
1,179 |
|
|
|
(23 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
3,380 |
|
|
|
3,398 |
|
|
|
(1 |
)% |
|
|
6,230 |
|
|
|
5,582 |
|
|
|
12 |
% |
|
|
5,531 |
|
|
|
5,236 |
|
|
|
6 |
% |
|
|
3,133 |
|
|
|
2,631 |
|
|
|
19 |
% |
|
|
1,927 |
|
|
|
1,624 |
|
|
|
19 |
% |
|
|
20,201 |
|
|
|
18,471 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the fiscal years ended September 30, 2007 and 2006
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue (location of customer) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa, Near and |
|
|
|
|
|
|
Germany |
|
|
(other than Germany) |
|
|
Americas |
|
|
Asia-Pacific |
|
|
Middle East, C.I.S. |
|
|
Total |
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
|
2007
|
|
|
2006
|
|
|
% Change
|
|
Operations Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens IT Solutions and Services (SIS) |
|
|
1,498 |
|
|
|
1,788 |
|
|
|
(16 |
)% |
|
|
1,854 |
|
|
|
2,014 |
|
|
|
(8 |
)% |
|
|
472 |
|
|
|
505 |
|
|
|
(7 |
)% |
|
|
98 |
|
|
|
75 |
|
|
|
31 |
% |
|
|
66 |
|
|
|
84 |
|
|
|
(21 |
)% |
|
|
3,988 |
|
|
|
4,466 |
|
|
|
(11 |
)% |
Automation and Drives (A&D) |
|
|
3,991 |
|
|
|
3,396 |
|
|
|
18 |
% |
|
|
4,191 |
|
|
|
3,485 |
|
|
|
20 |
% |
|
|
2,643 |
|
|
|
2,324 |
|
|
|
14 |
% |
|
|
2,419 |
|
|
|
2,017 |
|
|
|
20 |
% |
|
|
451 |
|
|
|
342 |
|
|
|
32 |
% |
|
|
13,695 |
|
|
|
11,564 |
|
|
|
18 |
% |
Industrial Solutions and Services (I&S) |
|
|
1,011 |
|
|
|
1,011 |
|
|
|
0 |
% |
|
|
2,178 |
|
|
|
2,141 |
|
|
|
2 |
% |
|
|
2,359 |
|
|
|
2,549 |
|
|
|
(7 |
)% |
|
|
1,364 |
|
|
|
1,187 |
|
|
|
15 |
% |
|
|
912 |
|
|
|
949 |
|
|
|
(4 |
)% |
|
|
7,824 |
|
|
|
7,837 |
|
|
|
(0 |
)% |
Siemens Building Technologies (SBT) |
|
|
972 |
|
|
|
935 |
|
|
|
4 |
% |
|
|
1,885 |
|
|
|
1,768 |
|
|
|
7 |
% |
|
|
1,715 |
|
|
|
1,641 |
|
|
|
5 |
% |
|
|
251 |
|
|
|
250 |
|
|
|
0 |
% |
|
|
129 |
|
|
|
101 |
|
|
|
28 |
% |
|
|
4,952 |
|
|
|
4,695 |
|
|
|
5 |
% |
Power Generation (PG) |
|
|
1,182 |
|
|
|
1,153 |
|
|
|
3 |
% |
|
|
2,920 |
|
|
|
2,267 |
|
|
|
29 |
% |
|
|
3,405 |
|
|
|
2,706 |
|
|
|
26 |
% |
|
|
2,024 |
|
|
|
1,571 |
|
|
|
29 |
% |
|
|
2,628 |
|
|
|
2,371 |
|
|
|
11 |
% |
|
|
12,159 |
|
|
|
10,068 |
|
|
|
21 |
% |
Power Transmission and Distribution (PTD) |
|
|
660 |
|
|
|
558 |
|
|
|
18 |
% |
|
|
1,842 |
|
|
|
1,684 |
|
|
|
9 |
% |
|
|
1,373 |
|
|
|
1,233 |
|
|
|
11 |
% |
|
|
1,601 |
|
|
|
1,457 |
|
|
|
10 |
% |
|
|
1,650 |
|
|
|
1,100 |
|
|
|
50 |
% |
|
|
7,126 |
|
|
|
6,032 |
|
|
|
18 |
% |
Transportation Systems (TS) |
|
|
717 |
|
|
|
890 |
|
|
|
(19 |
)% |
|
|
2,353 |
|
|
|
2,150 |
|
|
|
9 |
% |
|
|
390 |
|
|
|
583 |
|
|
|
(33 |
)% |
|
|
826 |
|
|
|
707 |
|
|
|
17 |
% |
|
|
132 |
|
|
|
99 |
|
|
|
33 |
% |
|
|
4,418 |
|
|
|
4,429 |
|
|
|
(0 |
)% |
Medical Solutions (Med) |
|
|
875 |
|
|
|
682 |
|
|
|
28 |
% |
|
|
2,462 |
|
|
|
1,843 |
|
|
|
34 |
% |
|
|
4,578 |
|
|
|
4,044 |
|
|
|
13 |
% |
|
|
1,468 |
|
|
|
1,222 |
|
|
|
20 |
% |
|
|
415 |
|
|
|
373 |
|
|
|
11 |
% |
|
|
9,798 |
|
|
|
8,164 |
|
|
|
20 |
% |
Osram |
|
|
539 |
|
|
|
535 |
|
|
|
1 |
% |
|
|
1,216 |
|
|
|
1,126 |
|
|
|
8 |
% |
|
|
1,947 |
|
|
|
1,982 |
|
|
|
(2 |
)% |
|
|
780 |
|
|
|
736 |
|
|
|
6 |
% |
|
|
195 |
|
|
|
168 |
|
|
|
16 |
% |
|
|
4,677 |
|
|
|
4,547 |
|
|
|
3 |
% |
Reconciliation to Siemens |
|
|
1,149 |
|
|
|
1,434 |
|
|
|
(20 |
)% |
|
|
1,900 |
|
|
|
2,011 |
|
|
|
(6 |
)% |
|
|
439 |
|
|
|
804 |
|
|
|
(45 |
)% |
|
|
106 |
|
|
|
235 |
|
|
|
(55 |
)% |
|
|
217 |
|
|
|
201 |
|
|
|
8 |
% |
|
|
3,811 |
|
|
|
4,685 |
|
|
|
(19 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
12,594 |
|
|
|
12,382 |
|
|
|
2 |
% |
|
|
22,801 |
|
|
|
20,489 |
|
|
|
11 |
% |
|
|
19,321 |
|
|
|
18,371 |
|
|
|
5 |
% |
|
|
10,937 |
|
|
|
9,457 |
|
|
|
16 |
% |
|
|
6,795 |
|
|
|
5,788 |
|
|
|
17 |
% |
|
|
72,448 |
|
|
|
66,487 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation and Definitions for Non-GAAP Measures
Group profit from Operations is reconciled to Income before income taxes of Operations under
Reconciliation to financial statements on the table Segment Information. See our Financial
Publications at our Investor Relations website under www.siemens.com/ir.
Earnings before interest and taxes (EBIT)(adjusted) 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.
Earnings before interest, taxes, depreciation and amortization (EBITDA) (adjusted) is EBIT before
Depreciation and Amortization, defined as amortization and impairments of intangible assets
depreciation and impairments of property, plant and equipment.
Group profit is reconciled to EBIT and EBITDA on the table Segment Information Analysis (II). See
our Financial Publications at our Investor Relations website under www.siemens.com/ir.
Return on Capital Employed (ROCE) is a measure of how capital invested in the Company or the Group
yields competitive returns.
For the Company, ROCE is calculated as Net income (before interest) divided by average Capital
employed (CE). Net income (before interest) is defined as Net income excluding Other interest
income (expense), net and excluding taxes on Other interest income (expense), net. Taxes on Other
interest income (expense), net are calculated in simplified form by applying the current tax rate
which can be derived from the Consolidated Statements of Income, to Other interest income
(expense), net. CE is defined as Total equity plus Long-term debt plus Short-term debt and current
maturities of long-term debt minus Cash and cash equivalents Because Siemens reports discontinued
operations, Siemens also calculates ROCE on a continuing operations basis, using Income from
continuing operations rather than Net income. For purposes of this calculation, CE is adjusted by
the net figure for Assets classified as held for disposal included in discontinued operations less
Liabilities associated with assets classified as held for disposal included in discontinued
operations.
For the Operations Groups, ROCE is calculated as Group profit divided by average Net capital
employed (NCE). Group profit for the Operations Groups is principally defined as earnings before
financing interest, certain pension costs and income taxes. Group profit excludes various
categories of items which are not allocated to the Groups since the Managing Board does not regard
such items as indicative of the Groups performance. NCE for the Operations Groups is defined as
total assets less tax assets, provisions and non-interest bearing liabilities other than tax
liabilities.
Average (Net) Capital employed for the fiscal year is calculated as a five-point average obtained
by averaging the (Net) Capital employed at the beginning of the first quarter plus the final
figures for all four quarters of the fiscal year. For the calculation of the average during for the
quarters, see below:
Average calculation for CE*:
|
|
|
Year-to- |
|
|
Date |
|
|
Q1
|
|
2 Point average: (CE ending Q4 Prior year + CE ending Q1) / 2 |
Q2
|
|
3 Point average: (CE ending Q4 Prior year + CE ending Q1 + CE ending Q2) / 3 |
Q3
|
|
4 Point average: (CE ending Q4 Prior year + CE ending Q1 + CE ending Q2 + CE ending Q3) / 4 |
|
|
|
Quarter- |
|
|
to-Date |
|
|
Q1
|
|
2 Point average: (CE ending Q4 Prior year + CE ending Q1) / 2 |
Q2
|
|
2 Point average: (CE ending Q1 + CE ending Q2) / 2 |
Q3
|
|
2 Point average: (CE ending Q2 + CE ending Q3) / 2 |
Q4
|
|
2 Point average: (CE ending Q3 + CE ending Q4) / 2 |
|
|
|
* |
|
NCE for Operations Groups. |
Our cash target is based on the Cash Conversion Rate (CCR), which serves as a target indicator for
the Companys or the Groups cash flow.
For the Company, CCR is defined as the ratio of Free cash flow to Net income, where Free cash flow
equals the Net cash provided by (used in) operating activities less Additions to intangible assets
and property, plant and equipment.
Because Siemens reports discontinued operations, this measure is also shown on a continuing
operations basis, using Income from continuing operations, Net cash provided by (used in) operating
activities continuing operations and Additions to intangible assets and property, plant and
equipment for continuing operations for the calculation.
For the Groups, CCR is defined as Free cash flow divided by Group profit.
All values needed for the calculation of ROCE and CCR can be obtained from the Consolidated
Financial Statements and Notes to Consolidated Financial
Statements.
Group profit, Net capital employed and Free cash flow for the Company and the Groups can be found
on the table Segment information. Our Consolidated Financial Statements are available on our
Investor Relations website under www.siemens.com/ir.
Siemens ties a portion of its executive incentive compensation to achieving economic value added
(EVA) targets. EVA measures the profitability of a business (using Group profit for the Operating
Groups and Income before income taxes for the Financing and Real estate businesses as a base)
against the additional cost of capital used to run a business (using NCE for the Operating Groups
and risk-adjusted equity for the Financing and Real estate businesses as a base). A positive EVA
indicates that a business has earned more than its cost of capital, and is therefore defined as
value-creating. A negative EVA indicates that a business is earning less than its cost of capital
and is therefore defined as value-destroying. Other organizations that use EVA may define and
calculate EVA differently.
Our capital structure target is based on an Adjusted industrial net debt divided by EBITDA
(adjusted). For the calculation of Adjusted industrial net debt, we subtract from Net debt (defined
as Long-term debt plus Short-term debt and current maturities of long-term debt less Cash and cash
equivalents less Available-for-sale financial assets) (1) SFS debt excluding SFS internally
purchased receivables and (2) 50% of the nominal amount of our hybrid bond; and add/subtract (3)
Funded status of Pension benefits, (4) Funded status of Other post-employment benefits; and add (5)
Credit guarantees. The components of Net debt are available on our Consolidated Balance Sheets, SFS
debt less internally purchased receivables is available in our Management Discussion & Analysis
under Capital Resources and Requirements. The Funded status of our principle pension plans and
Other post-employment benefits, the amount of credit guarantees and the nominal amount of our
Hybrid bond is available in the Notes to our Consolidated Financial Statements.
To measure Siemens achievement of the goal to grow at twice the rate of global GDP, we use GDP on
real basis (i.e. excluding inflation and currency translation effects) with data provided by Global
Insight Inc. and compare those growth rates with growth rates of our revenue (under IFRS). In
accordance with IFRS, our revenue numbers are not adjusted by inflation and currency translation
effects.
Return on equity (ROE) margin for SFS was calculated as SFS Income before income taxes divided by
the allocated equity for SFS. Allocated equity for SFS for the financial year 2007 is 1.041
billion.
The allocated equity for SFS is determined and influenced by the respective credit ratings of the
rating agencies and by the expected size and quality of its portfolio of leasing and factoring
assets and equity investments and is determined annually. This allocation is designed to cover the
risks of the underlying business and is in line with common credit risk management standards in
banking. The actual risk profile of the SFS portfolio is monitored and controlled monthly and is
evaluated against the allocated equity.
Group profit from Operations, EBIT (adjusted), EBITDA (adjusted), ROCE, CCR, EVA and Adjusted
industrial net debt are or may be Non-GAAP financial measures as defined in relevant rules of the
U.S. Securities and Exchange Commission. Our management takes these measures, among others, into
account in its management of our business, and for this reason we believe that investors may find
it useful to consider these measures in their evaluation of our performance. None of Group profit
from Operations, EBIT (adjusted), EBITDA (adjusted), ROCE and EVA should be viewed in isolation as
an alternative to IFRS net income for purposes of evaluating our results of operations; CCR should
not be viewed in isolation as an alternative to measures reported in our IFRS cash flow statement
for purposes of evaluating our cash flows; and Adjusted industrial net debt should not be viewed in
isolation as an alternative to liabilities reported in our IFRS balance sheet for purposes of
evaluating our financial condition.
Munich, November 8, 2007
Legal proceedings Fiscal 2007
Public prosecutors and other government authorities in jurisdictions around the world are
conducting investigations of Siemens AG and its consolidated subsidiaries (hereinafter Siemens or
the Company shall refer to Siemens AG and, unless the context otherwise requires, to its
consolidated subsidiaries) and certain of its current and former employees regarding allegations of
public corruption, including criminal breaches of fiduciary duty including embezzlement, as well as
bribery, money laundering and tax evasion, among others. These investigations involve allegations
of corruption at a number of Siemens business Groups.
The Munich public prosecutor continues to conduct an investigation of certain current and
former employees of the Company on suspicion of criminal breaches of fiduciary duty including
embezzlement, as well as bribery and tax evasion. To date, the Munich prosecutor has conducted
searches of Company premises and private homes and several arrest warrants have been issued for
current and former employees, including former members of senior management, who are or were
associated with the former Communications (Com) Group and the Company.
On October 4, 2007, pursuant to the application of the Munich prosecutor, the Munich district
court imposed a fine of 201 million on Siemens. According to the courts decision, a former
manager of the former Com Group committed bribery of foreign public officials in Russia, Nigeria
and Libya in 77 cases during the period from 2001 to 2004 for the purpose of obtaining contracts on
behalf of the Company, whereby he acted in concert with others. In determining the fine, the court
based its decision on unlawfully obtained economic advantages in the amount of at least 200
million which the Company derived from illegal acts of the former employee, to which an additional
fine in the amount of 1 million was added.
The decision of the Munich district court and the settlement (tatsächliche Verständigung)
entered into the same day with the German tax authorities, which is described below, conclude the
German investigations into illegal conduct and tax violations only as they relate to Siemens AG and
only as to the former Com Group.
As previously reported, there are ongoing investigations in Switzerland, Italy, and Greece.
These investigations relate to allegations that certain current and former employees of the former
Com Group opened slush fund accounts abroad and operated a system to misappropriate funds from the
Company and, specifically, that these individuals siphoned off money from Com via off-shore
companies and their own account in Switzerland and Liechtenstein. The Company has learned that
Liechtenstein prosecutors have transferred their investigation to Swiss and Munich prosecutors.
As previously reported, Milan and Darmstadt prosecutors have been investigating allegations
that former Siemens employees provided improper benefits to former employees of Enel in connection
with Enel contracts. In Italy, legal proceedings against two former employees ended when the
patteggiamento (plea bargaining procedure without the admission of guilt or responsibility) by
the charged employees and Siemens AG entered into force in November 2006. Prosecutors in Darmstadt
brought charges against two other former employees not covered by the patteggiamento. In May
2007, the Regional Court of Darmstadt sentenced one former employee to two years in prison,
suspended on probation, on counts of commercial bribery and embezzlement. Another former employee
was sentenced to nine months in prison, suspended on probation, on counts of aiding and abetting
commercial bribery. In connection with these sentences, Siemens AG was ordered to disgorge 38
million of profits. The prosecutors and both defendants have appealed the decision of the Regional
Court of Darmstadt. Siemens AG has also appealed the decision with respect to the disgorgement.
As previously reported, in 2004 the public prosecutor in Wuppertal initiated an investigation
against Siemens employees regarding allegations that they participated in bribery related to the
awarding of an EU contract for the refurbishment of a power plant in Serbia in 2002. In August
2007, the public prosecutor conducted searches of the premises of the Power Generation (PG) Group
in Erlangen, Offenbach and Karlsruhe in relation to this investigation. The investigation is
ongoing.
1 / 8
In addition, there is a significant number of ongoing investigations into allegations of
public corruption involving the Company, certain of its current and former employees or projects in
which the Company is involved in a number of jurisdictions around the world, including China,
Hungary, Indonesia, Israel, Italy, Norway and Russia, among others. Specific examples include the
following:
|
§ |
|
There are currently numerous public corruption-related governmental investigations in
China, involving several divisions of Siemens Ltd. China, primarily Medical Solutions
(Med), but also Automation and Drives (A&D) and Siemens IT Solutions and Services (SIS).
The investigations have been initiated by prosecutors in several regions and provinces,
including Guangdong, Jilin, Xi´an, Wuxi, Shanghai, Ting Hu, Shandong, Hunan, and Guiyang. |
|
|
§ |
|
Siemens Zrt. Hungary and certain of its employees are being investigated by Hungarian
authorities in connection with allegations concerning suspicious payments in connection
with consulting agreements with a variety of shell corporations and bribery relating to
the awarding of a contract for the delivery of communication equipment to the Hungarian
Armed Forces. |
|
|
§ |
|
The public prosecutor in Kalimantan Province, Indonesia, has charged the head of the Med
division of Siemens PT Indonesia in connection with allegations that he participated in
bribery, fraud, and overcharging related to the awarding of a contract for the delivery of
medical equipment to a hospital in 2003. |
|
|
§ |
|
The Norwegian government is investigating allegations of bribery and overcharging of the
Norwegian Department of Defense related to the awarding of a contract for the delivery of
communication equipment in 2001. |
|
|
§ |
|
The public prosecutor in Milan is investigating allegations as to whether two employees
of Siemens S.p.A. made illegal payments to employees of the state-owned gas and power group
ENI. |
As previously reported, the U.S. Department of Justice (DOJ) is conducting an investigation of
possible criminal violations of U.S. law by Siemens in connection with the matters described above
and other allegations of corruption. During the second quarter of fiscal 2007, Siemens was advised
that the U.S. Securities and Exchange Commissions (SEC) enforcement division had converted its
informal inquiry into these matters into a formal investigation. The Company is cooperating with
these investigations.
The SEC and the DOJ are also investigating possible violations of U.S. law by Siemens in
connection with the Oil-for-Food Program. The Company is cooperating with the SEC and DOJ. A French
investigating magistrate commenced a preliminary investigation regarding the participation of
French companies, including Siemens France S.A.S., in the Oil-for-Food Program. German prosecutors
also began an investigation in this matter and conducted searches of Company premises and private
homes in Erlangen and Berlin in August 2007. Siemens is cooperating with the authorities in France
and Germany.
As a result of the above described matters and as a part of its policy of cooperation, Siemens
contacted the World Bank and offered to assist the World Bank in any matter that might be of
interest to the World Bank. Since that time, Siemens has been in contact with the World Bank
Department of Institutional Integrity and intends to continue its policy of cooperation.
In February 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 criminal
breach of fiduciary duties against Siemens, tax evasion and a violation of the German Works Council
Constitution Act (Betriebsverfassungsgesetz). The investigation relates to an agreement entered
into by Siemens with an entity controlled by 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
commensurate services in return. The former head of AUB was arrested in February 2007. Since
February, searches have been conducted at several Siemens AG premises and private homes and an
arrest warrant was issued for a member of the Managing Board, in connection with this
investigation, who was taken into custody. This executives term has expired and he therefore is no
longer a member of the Managing Board. In addition to this former member of the Managing Board,
other current and former members of the Companys senior management have been named as suspects in
this matter. In April 2007, the former member of the Managing Board posted bail in the amount of
5 million and was released from custody.
2 / 8
In this connection, a bank issued a bond
(Bankbürgschaft) in the amount of 5 million, 4.5 million of which was guaranteed by the
Company pursuant to provisions of German law. The former member of the Managing Board has provided
the Company a personal undertaking to cooperate with and fully support the independent
investigation conducted by Debevoise & Plimpton LLP (Debevoise), as described below,
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 Companys relationship with the former head of AUB and the AUB has also
been included within the scope of the investigation being conducted by Debevoise. In April 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 by
providing undue preferential support to AUB in connection with elections of the members of the
Companys works councils.
In February 2007, an alleged holder of American Depositary Shares 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 Companys 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.
The Company has engaged 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 Compliance Committee of the Supervisory
Board (formerly the Audit Committee, as described below) and is being assisted by forensic
accountants from the international accounting firm Deloitte & Touche. Debevoises investigation of
allegations of corruption at the former Com Group, the Companys other Groups and at regional
Siemens subsidiaries is ongoing.
The Company has also conducted an analysis of the impact on the Companys financial statements
of issues raised by allegations of violations of anti-corruption legislation. As previously
reported, within the former Com Group, the Companys other Groups and regional companies a number
of Business Consultant Agreements (BCAs) and similar sales-related arrangements have been
identified. The Company has identified a large volume of payments made in connection with these
contracts for which the Company has not 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,
the Companys investigation determined that certain of these payments were non-deductible under tax
regulations of Germany and other jurisdictions.
During the fourth quarter of fiscal 2007, the Company substantially completed its analysis of
the tax deductibility of payments under the BCAs and other sales-related agreements with
third-party intermediaries identified at the former Com Group, the remaining Groups and in regional
companies. During the fourth quarter of fiscal 2007, the Company also substantially completed its
risk-based analysis of cash and check payments at the former Com Group, the Companys other Groups
and in regional companies, for which limited documentation was available, and which may also raise
concerns under the FCPA and anti-corruption legislation in Germany and other countries.
The Company has accounted for income tax-related charges with respect to fiscal 2000-2006 and
adjusted comparative amounts for fiscal 2005 and 2006 as summarized below:
|
§ |
|
In October 2007, the Company reached a final settlement (tatsächliche Verständigung)
with the German tax authorities regarding the deductibility for tax purposes of certain
payments at the former Com Group at Siemens AG with respect to fiscal 2000-2006. Pursuant
to the settlement, the Companys income tax obligation relating to payments in connection
with BCAs, other sales-related agreements with third-party intermediaries and other
payments relating to the former Com Group at Siemens AG was determined to be 179
million. Payments of approximately 449 million were determined to be non-deductible
for tax purposes. The Company also recorded interest charges of 12 million related to
the tax obligations. |
3 / 8
|
§ |
|
In October 2007, the German tax authorities provided the findings of the tax audit
relating to payments under BCAs and similar sales-related agreements with third-party
intermediaries by the Companys German Non-Com Groups and entities for fiscal 2000-2005 in
the course of a final audit meeting (Schlussbesprechung). The Company accepted the
assessment of the tax authorities. Based on this assessment, the Company determined
non-deductible payments relating to fiscal 2006 and considered this information in the
income tax return for fiscal 2006.
Based on the above, the Company recorded income tax expenses of 264 million for fiscal
2000-2006 with respect to payments with a total volume of approximately 599 million
which were determined to be non-deductible for tax purposes. The Company also recorded
interest charges of 11 million related to the tax obligations. |
|
|
§ |
|
In fiscal 2007, the Company also recorded charges for fiscal 2000-2006 in the amount of
75 million for estimated additional income tax expenses outside of Germany relating to
payments in connection with BCAs, other sales-related agreements with third-party
intermediaries and other payments of approximately 258 million which were determined to
be non-deductible for tax purposes. The Company also recorded interest charges of 5
million related to the tax obligations. |
As previously reported, in fiscal 2006, the Company recorded income tax charges in the amount
of 168 million relating to German income tax liabilities with respect to payments of
approximately 417 million. In fiscal 2006, the Company also recorded certain immaterial charges
with respect to non-German tax obligations. Due to the matters mentioned above, the Company
accounted for an additional amount of 350 million in income tax charges and 28 million in
related interest charges related to fiscal 2000-2006. The Company adopted the SECs Staff
Accounting Bulletin No. 108 in fiscal 2007 and adjusted comparative amounts for fiscal 2005 and
2006 in the consolidated financial statements for fiscal 2007. The effect of these adjustments on
net income for fiscal 2006 and 2005 and shareholders equity as of October 1, 2004 amounted to an
increase of 25 million, a decrease of 69 million and a decrease of 334 million,
respectively.
In addition, in fiscal 2007, the Company also recorded an immaterial charge in respect of
certain non-German tax penalties relating to the matters described above; the Company also recorded
an immaterial tax charge based on its estimate of potential tax liabilities relating to
sales-related intermediary and other payments in fiscal 2007.
In the course of its independent investigation, Debevoise also identified certain commission
liability accounts at the Med Group which were created in fiscal years prior to 2005 and
subsequently released in a manner that did not comply with applicable accounting principles. The
release of those liabilities resulted in an increase in group profit at Med of 25 million and
an increase in net income of 15 million in fiscal 2005 and an increase in group profit of
24 million and an increase in net income of 15 million in fiscal 2006 with no impact on
group profit in fiscal 2007. As a result, opening shareholders equity as of October 1, 2004 was
understated by 30 million. In addition, these accounts may have been used to fund payments in
connection with BCAs. The Company adjusted comparative amounts for prior periods in the
consolidated financial statements for fiscal 2007.
The Company also became aware of additional bank accounts and cash funds at various locations
that were not previously recorded in the Companys balance sheet and is currently investigating
whether Siemens is the economic owner of the funds. Certain funds have been frozen by authorities.
Approximately 11 million was recorded in the Companys financial statements for fiscal 2007,
mostly relating to funds paid back by a former officer in January 2007 and funds received from a
trust account in October and November 2007.
The Company remains subject to corruption-related investigations in the U.S. and other
jurisdictions around the world. As a result, additional criminal or civil sanctions could be
brought against the Company itself or against certain of its employees in connection with possible
violations of law, including the FCPA. In addition, the scope of pending investigations may be
expanded and new investigations commenced in connection with allegations of bribery and other
illegal acts. The Companys operating activities and reputation may also be negatively affected,
particularly due to imposed penalties, disgorgements, compensatory damages, the formal or informal
exclusion from public procurement contracts or the loss of business licenses or permits.
4 / 8
In
addition to the amounts mentioned above, no material charges or provisions for any such penalties
or damages have been accrued as management does not yet have enough information to reliably
estimate such amounts. Furthermore, changes affecting the Companys course of business or its
compliance programs may turn out to be necessary.
Fiscal 2007 included a total of 347 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.
The Company has taken a number of significant steps to improve its compliance procedures and
internal controls in response to the allegations of corruption. The Company is continuing to
improve and implement its anti-corruption program and related controls and is in the process of
assessing the effectiveness of its internal control over financial reporting for fiscal 2007.
Among the initiatives the Company has implemented or is in the process of implementing are:
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The Supervisory Board of the Company has formed a Compliance Committee of the
Supervisory Board, which oversees the ongoing investigations and remediation activities of
the Company. The Compliance Committee is composed of the members of the Audit Committee of
the Supervisory Board and is chaired by the chairman of the Supervisory Board. |
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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 has also developed a Compliance Helpdesk with distinct features designed to
receive compliance-related complaints (Tell Us) and to answer compliance-related
questions from employees (Ask Us). |
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The Company has established a Corporate Disciplinary Committee to consider and impose
appropriate disciplinary measures in cases where suspicions of violations of law or Company
policies or other misconduct have been substantiated. |
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The Companys audit and compliance departments and an internal task force are continuing
their internal analysis and review of the Companys compliance and internal control system
for deficiencies and any possibilities of circumvention, including by conducting internal
control remediation visits in selected regions and Groups. |
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The Company is in the process of enhancing internal controls through centralization of
its bank accounts and cash payment systems. |
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The Company has implemented a moratorium on entering into new BCAs as well as making new
payments under existing BCAs. Any exceptions require the prior written consent of relevant
senior management as well as the written consent of the Companys chief compliance officer
based on a review of the agreements in question. As part of this policy, the Company is in
an ongoing process of reviewing existing BCAs for purposes of compliance risk in connection
with their continued performance. The Company has discontinued payment under a number of
BCAs and, in certain cases, has terminated BCAs. |
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The Company is in the process of enhancing its anti-corruption policies. The Company
has adopted, and is in the process of implementing, new policies regarding
anti-public-corruption compliance, retention of intermediaries who interact with
government authorities on Siemens behalf, compliance in M&A transactions, joint ventures
and minority investments, and gifts and hospitality. |
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The Company is continuing the roll-out of a formal program of anti-corruption and other
legal compliance training for management, group and regional compliance officers and other
employees. |
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The Company established a new Managing Board position for legal and compliance matters,
effective October 1, 2007. Peter Y. Solmssen was appointed a member of Siemens Managing
Board as well as the Companys General Counsel, with overall responsibility for legal and
compliance issues. |
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Effective September 19, 2007, the Managing Board appointed Andreas Pohlmann as Chief
Compliance Officer. |
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Effective October 1, 2007, all company audit functions were merged into the unit
Corporate Finance Audit, which was assigned to the Corporate Finance Department. Corporate
Finance Audit is headed by Hans Winters, who was appointed Chief Audit Officer with an
independent reporting line to the Audit Committee and its Chairman. |
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The Company has adopted a global amnesty program. Pursuant to this program, if
employees, by January 31, 2008, voluntarily provide the Company with information regarding
possible violations of anti-public-corruption laws, including any related accounting
irregularities, the Company will not make any claims for damages and will not unilaterally
terminate such employees employment relationship. The Company reserves the right to
impose lesser disciplinary measures or additional compliance training. Senior management
is not eligible for the amnesty, subject to certain exceptions for certain functions. |
As previously reported, the Company engaged an independent compliance advisor in order to
consult the Managing Board and the Compliance 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 associated communication and training.
The independent compliance advisor provided periodic status reports to the Managing Board and the
Compliance Committee. With the implementation of the changes enumerated above, the external compliance
advisor has been directed by the Compliance Committee to report to and to support the activities of
the Company´s Chief Compliance Officer.
In addition to the proceedings described above, the Company is also involved in a number of
anti-trust and other legal proceedings:
A Mexican governmental control authority barred Siemens Mexico from bidding on public
contracts for a period of three years and nine months beginning November 30, 2005. This proceeding
arose from allegations that Siemens Mexico did not disclose alleged minor tax discrepancies when it
was signing a public contract in 2002. Upon appeal by Siemens Mexico, the execution of the
debarment was stayed on December 13, 2005 and subsequently reduced to a period of four months. Upon
further appeal, the execution of the reduced debarment was stayed by the competent Mexican court in
April 2006. A final decision on the appeal has not yet been announced.
In February 2007, Siemens Medical Solutions USA, Inc. (SMS) announced that it had reached an
agreement with the U.S. Attorneys Office for the Northern District of Illinois to settle
allegations made in an indictment filed in January 2006. The agreement resolves all allegations
made against SMS in the indictment. Under the agreement, SMS has pled guilty to a single federal
criminal charge of obstruction of justice in connection with civil litigation that followed a bid
to provide radiology equipment to Cook County Hospital in 2001. In addition, SMS has agreed to pay
a fine of $1 million and restitution of approximately $1.5 million.
In December 2006, the Japanese Fair Trade Commission (FTC) searched the offices of more than
ten producers and dealers of healthcare equipment, including Siemens Asahi Medical Technologies
Ltd., in connection with an investigation into possible anti-trust violations. Siemens Asahi
Medical Technologies is cooperating with the FTC in the ongoing investigation.
In February 2007, the French Competition Authority launched an investigation into possible
anti-trust violations involving several companies active in the field of suburban trains, including
Siemens Transportation Systems S.A.S. in Paris, and the offices were searched. The Company is
cooperating with the French Competition Authority.
In February 2007, the Norwegian Competition Authority launched an investigation into possible
anti-trust violations involving Norwegian companies active in the field of fire security, including
Siemens Building Technologies AS. The Company is cooperating in the ongoing investigation with the
Norwegian Competition Authority. The Norwegian Competition Authority has not yet announced a
schedule for the completion of the investigation.
In February 2007, the European Commission launched an investigation into possible anti-trust
violations involving European producers of power transformers, including Siemens AG and VA Tech,
which Siemens acquired in July 2005. Power transformers are electrical equipment used as major
components in electric transmission systems in order to adapt voltages. The Company is cooperating
in the ongoing investigation with the European Commission. The European Commission has not yet
announced a schedule for the completion of its investigation.
6 / 8
In April 2007, Siemens AG and VA Tech filed actions before the European Court of First
Instance in Luxemburg against the decisions of the European Commission dated January 24, 2007, to
fine Siemens and VA Tech for alleged antitrust violations in the European Market of high-voltage
gas-insulated switchgear between 1988 and 2004. Gas-insulated switchgear is electrical equipment
used as a major component for turnkey power substations. The fine imposed on Siemens amounted to
396.6 million. The fine imposed on VA Tech, which Siemens AG acquired in July 2005, amounted to
22.1 million. VA Tech was declared jointly liable with Schneider Electric for a separate fine
of 4.5 million. The European Court of First Instance has not yet issued a decision.
Furthermore, authorities in Brazil, New Zealand, the Czech Republic, Slovakia and South Africa are
conducting investigations into the same possible antitrust violations. On October 25, 2007, upon
the Companys appeal, a Hungarian competition court reduced administrative fines imposed on Siemens
AG from 320,000 to 120,000 and from 640,000 to 110,000 regarding VA Tech.
In April 2007, the Polish Competition Authority launched an investigation against Siemens Sp.
z o.o. Poland regarding possible anti-trust violations in the market for the maintenance of
diagnostic medical equipment. The Company is cooperating in the ongoing investigation with the
Polish Competition Authority.
In June 2007, the Turkish Anti-trust Agency confirmed its earlier decision to impose a fine of
approximately 6 million on Siemens AS Turkey based on alleged anti-trust violations in the
traffic lights market. Siemens Turkey has appealed this decision and this appeal is still pending.
It is possible that as a result of this decision, Siemens could be debarred from participating in
public sector tender offers in Turkey for a one to two year period.
The Company requested arbitration against the Republic of Argentina before the International
Center for Settlement of Investment Disputes (ICSID) of the World Bank. The Company claimed that
Argentina unlawfully terminated the Companys contract for the development and operation of a
system for the production of identity cards, border control, collection of data and voters
registers and thereby violated the Bilateral Investment Protection Treaty between Argentina and
Germany (BIT). The Company sought damages for expropriation and violation of the BIT of
approximately $500 million. Argentina disputed jurisdiction of the ICSID arbitration tribunal and
argued in favor of jurisdiction of the Argentine administrative courts. The arbitration tribunal
rendered a decision on August 4, 2004, finding that it had jurisdiction over Siemens claims and
that Siemens was entitled to present its claims. A hearing on the merits of the case took place
before the ICSID arbitration tribunal in Washington in October 2005. A unanimous decision on the
merits was rendered on February 6, 2007, awarding Siemens compensation in the amount of $217.8
million on account of the value of its investment and consequential damages, plus compound interest
thereon at a rate of 2.66% since May 18, 2001. The tribunal also ruled that Argentina is obligated
to indemnify Siemens against any claims of subcontractors in relation to the project (amounting to
approximately $44 million) and, furthermore, that Argentina would be obligated to pay Siemens the
full amount of the contract performance bond ($20 million) in the event this bond was not returned
within the time period set by the tribunal (which period subsequently elapsed without delivery). On
June 4, 2007, Argentina filed with the ICSID an application for the annulment and stay of
enforcement of the award, alleging serious procedural irregularities. An ad hoc committee has been
appointed to consider Argentinas application. Siemens currently expects that the ad hoc committee
will not render a decision before 2009.
Siemens AG and its subsidiaries have been named as defendants in various other legal actions
and proceedings arising in connection with their activities as a global diversified group. Some of
these pending proceedings have been previously disclosed. Some of the legal actions include claims
for substantial compensatory or punitive damages or claims for indeterminate amounts of damages.
Siemens is from time to time also involved in regulatory investigations beyond those described
above. Siemens is cooperating with the relevant authorities in several jurisdictions and, where
appropriate, conducts internal investigations regarding potential wrongdoing with the assistance of
in-house and external counsel. Given the number of legal actions and other proceedings to which
Siemens is subject, some may result in adverse decisions. Siemens contests actions and proceedings
when it considers it appropriate. In view of the inherent difficulty of predicting the outcome of
such matters, particularly in cases in which claimants seek substantial or indeterminate damages,
Siemens often cannot predict what the eventual loss or range of loss related to such matters will
be. Although the final resolution of these matters could have a material effect on Siemens
consolidated operating results for any reporting period in which an adverse decision is rendered,
Siemens believes that its consolidated financial position should not be materially affected by the
matters discussed in this paragraph.
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Siemens AG
Corporate Communications
Compliance Communications
80312 Munich
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7 / 8
This document contains forward-looking statements and information that is, statements related to
future, not past, events. These statements may be identified by words such 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 SECs 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.
EBITDA (adjusted), Return on capital employed, Free cash flow, Cash conversion and Net debt are
non-GAAP financial measures. A reconciliation of these amounts to the most directly comparable IFRS
financial measures is available on our Investor Relations website under www.siemens.com/ir,
Financial Publications, Quarterly Reports. Group profit from operations is reconciled to Income
before income taxes of Operations under Reconciliation to financial statements in the table
Segment Information.
8 / 8
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.
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SIEMENS AKTIENGESELLSCHAFT
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Date: November 8, 2007 |
/s/ Dr. Ralf P. Thomas
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Name: |
Dr. Ralf P. Thomas |
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Title: |
Corporate Vice President and Controller |
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/s/ Dr. Klaus Patzak
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Name: |
Dr. Klaus Patzak |
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Title: |
Corporate Vice President
Financial Reporting and Controlling |
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