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
May 5, 2008
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-
Introduction
Siemens AGs Interim Report complies with the applicable legal requirements of the Securities
Trading Act (Wertpapierhandelsgesetz WpHG) regarding the half-yearly financial report, and
comprises interim consolidated financial statements, an interim group management report and a
responsibility statement in accordance with § 37w (2) WpHG. The interim consolidated financial
statements have been prepared in accordance with International Financial Reporting Standards (IFRS)
and its interpretations issued by the International Accounting Standards Board (IASB), as adopted
by the European Union (EU). The interim consolidated financial statements also comply with IFRS as
issued by the IASB. This Interim Report should be read in conjunction with our Annual Report, which
includes detailed analysis of our operations and activities.
1
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Key figures(1)
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Q2 and first half 2008(2) |
(unaudited; in millions of , except where otherwise stated)
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% Change |
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1st half |
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1st half |
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% Change |
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Profit and growth
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Q2 2008 |
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Q2 2007 |
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Actual |
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Adjusted(3) |
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2008 |
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2007 |
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Actual |
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Adjusted(3) |
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Continuing operations |
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New orders |
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23,371 |
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20,850 |
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12 |
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15 |
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47,613 |
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43,094 |
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10 |
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11 |
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Revenue |
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18,094 |
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18,001 |
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1 |
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2 |
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36,494 |
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34,730 |
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5 |
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4 |
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Total
Operations Group |
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Group profit from Operations |
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1,203 |
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1,781 |
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(32 |
) |
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2,908 |
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3,259 |
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(11 |
) |
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in % of revenue (Total Op. Groups) |
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6.3 |
% |
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9.4 |
% |
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7.5 |
% |
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8.9 |
% |
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EBITDA adjusted |
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1,691 |
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2,222 |
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(24 |
) |
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3,925 |
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4,058 |
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(3 |
) |
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in % of revenue (Total Op. Groups) |
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8.8 |
% |
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11.7 |
% |
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10.2 |
% |
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11.1 |
% |
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Continuing operations
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EBITDA adjusted |
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1,381 |
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2,138 |
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(35 |
) |
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3,484 |
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3,475 |
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0 |
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Income from continuing operations |
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565 |
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1,286 |
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(56 |
) |
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1,643 |
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1,907 |
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(14 |
) |
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Basic earnings per share (in euros)(5) |
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0.59 |
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1.39 |
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(58 |
) |
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1.73 |
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2.04 |
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(15 |
) |
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Continuing and discontinued operations
(4) |
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Net income |
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412 |
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1,259 |
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(67 |
) |
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6,887 |
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2,047 |
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>200 |
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Basic earnings per share (in euros)(5) |
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0.42 |
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1.34 |
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(69 |
) |
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7.49 |
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2.17 |
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>200 |
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Return on capital employed |
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Q2 2008 |
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Q2 2007 |
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1st half 2008 |
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1st half 2007 |
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Continuing operations |
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Return on capital employed (ROCE) |
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5.5 |
% |
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17.6 |
% |
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8.6 |
% |
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13.6 |
% |
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Continuing and discontinued operations
(4) |
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Return on capital employed (ROCE) |
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4.0 |
% |
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14.1 |
% |
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33.7 |
% |
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12.0 |
% |
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Free
cash flow Cash conversion |
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Q2 2008 |
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Q2 2007 |
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1st half 2008 |
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1st half 2007 |
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Total
Operations Groups |
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Free cash flow |
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1,811 |
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2,229 |
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2,471 |
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2,219 |
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Cash conversion |
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1.51 |
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1.25 |
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0.85 |
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0.68 |
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Continuing operations |
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Free cash flow |
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1,623 |
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2,619 |
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1,406 |
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2,259 |
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Cash conversion |
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2.87 |
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2.04 |
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0.86 |
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1.18 |
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Continuing and discontinued operations
(4) |
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Free cash flow |
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1,497 |
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2,070 |
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696 |
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735 |
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Cash conversion |
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3.63 |
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1.64 |
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0.10 |
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0.36 |
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Employees (in thousands) |
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March 31, 2008
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September 30, 2007
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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 |
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419 |
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435 |
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398 |
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471 |
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Germany |
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131 |
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136 |
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126 |
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|
152 |
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Outside Germany |
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288 |
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299 |
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272 |
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319 |
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(1) |
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EBITDA (adjusted), Return on capital employed, Return on equity, Free cash flow and Cash
conversion are non-GAAP financial measures. Information for 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. |
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(2) |
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January 1 March 31, 2008 and October 1, 2007 March 31, 2008. |
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(3) |
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Adjusted for portfolio and currency translation effects. |
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(4) |
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Discontinued operations consist of Siemens VDO Automotive activities as well as of carrier
networks, enterprise networks and mobile devices activities. |
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(5) |
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Earnings per share attributable to shareholders of
Siemens AG. For fiscal 2008 and 2007
weighted average shares outstanding (basic) (in thousands) for the second quarter amounted to
906,316 and 893,929 respectively and for the 1st half to 910,207 and 892,619 shares respectively. |
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(6) |
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Continuing and discontinued operations. |
Interim group management report
Overview of financial results for the second quarter of fiscal 2008
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Orders rose 12%, to 23.371 billion, and revenue increased 1% to 18.094 billion. On an
organic basis, excluding the net effect of portfolio transactions and currency translation,
orders climbed 15% year-over-year, and revenue rose 2%. |
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|
Siemens substantially completed reviews of projects primarily in fossil power plant
solutions and rail transportation, aimed at identifying risks and taking corresponding
measures. As a result, Group profit from Operations was 1.203 billion in the second
quarter, including charges at Power Generation, Transportation Systems and Siemens IT
Solutions and Services totaling 857 million. |
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|
These impacts also affected net income, which was 412 million for the quarter, and
income from continuing operations, which came in at 565 million. Basic EPS for net income
and income from continuing operations were 0.42 and 0.59, respectively. |
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Shortly after the close of the second quarter, Siemens completed the first tranche of
its previously announced share buyback program, with purchases totaling approximately 2.0
billion of which purchases of approximately 1.6 billion were conducted during the second
quarter. |
Siemens order growth was robust on a global basis, and the industry and
healthcare sectors combined strong growth with higher earnings. Our energy portfolio performed well
in most areas, with strong overall order growth. We have now concluded our project review in the
fossil power business and have a clear picture of the relevant risks.
Robust order growth generated a book-to-bill ratio of 1.3. On an organic basis, excluding the
net effect of currency translation and portfolio transactions, orders rose 15% with good regional
distribution. Strong demand in Germany included major contract wins at Power Generation (PG) and a
large order at Medical Solutions (Med), while order growth in Asia-Pacific was more broad-based.
High double-digit growth in the region comprising the Near and Middle East, Africa and Commonwealth
of Independent States (C.I.S.) was driven by large energy infrastructure orders at Power
Transmission and Distribution (PTD). Revenue for the quarter rose 2% organically compared to a
strong prior-year period. Europe outside Germany, Siemens largest region, was on pace with 2%
growth for the quarter. Revenue in the Asia-Pacific and Americas regions grew 6% and 3%,
respectively, with particular strength at Automation and Drives (A&D). Excluding strong negative
currency translation effects, the U.S. posted revenue growth of 7% year-over-year. Revised
estimates of project completion, mainly at PG, reduced revenue by approximately 250 million.
Group profit from Operations was strongly affected by results of project reviews. The second
quarter included strong profit performance at A&D, Med, PTD, and Industrial Solutions and Services
(I&S). In contrast, PG, Transportation Systems (TS) and Siemens IT Solutions and Services posted
losses in the second quarter due to charges totaling 857 million. As a result, Group Profit from
Operations came in at 1.203 billion compared to 1.781 billion in the prior-year period.
Income and EPS reflect project review impacts. Net income was 412 million compared to 1.259
billion in the second quarter a year earlier, resulting in basic EPS of 0.42 compared to 1.34 in
the prior-year period. Income from continuing operations was 565 million compared to 1.286
billion in the second quarter a year ago, with corresponding basic EPS of 0.59 compared to 1.39
in the prior-year period. The declines are due largely to Group profit from Operations. In
addition, Corporate items were significantly higher year-over-
2
year, at a negative 506 million compared to a negative 210 million. Major factors included
increased expenses for compliance investigations and costs related to Siemens transformation
programs.
Net income was also influenced by discontinued operations. In the second quarter, discontinued
operations posted a loss of 153 million compared to a loss of 27 million in the same quarter a
year earlier. The prior-year period included positive operating results at Siemens VDO Automotive
(SV) and at telecommunications carrier activities, both of which were divested between the periods
under review. The enterprise networks business took 109 million in severance charges and a 12
million asset impairment in the current period. A year earlier, this business took a goodwill
impairment of 148 million.
Free cash flow and ROCE development includes project charges and reflect portfolio changes.
Free cash flow from continuing operations was 1.623 billion in the second quarter. In the
prior-year period, Free cash flow of 2.619 billion benefited from a positive effect related to
receivables associated with the transfer of the carrier activities into Nokia Siemens Networks B.V.
(NSN). In the current period, Operations generated
1.010 billion in Free cash flow while Financing
& Real Estate and Corporate Treasury activities contributed 613 million. The cash conversion rate
for continuing operations in the second quarter was 2.87, positively influenced by the charges
within Operations. ROCE for the first half of fiscal 2008 was adversely affected by the project
charges mentioned above, coming in at 8.6%. As expected, ROCE development was affected also by a
substantial increase in capital employed year-over-year stemming from major acquisitions completed
in fiscal 2007 and fiscal 2008. This effect will continue in coming quarters. A year earlier, ROCE
in the first six months was 13.6%.
Expenses for compliance investigations increase. Siemens incurred 175 million in expenses in
the second quarter for outside advisors engaged in connection with investigations into alleged
violations of anti-corruption laws and related matters as well as remediation activities. The total
for continuing operations was 148 million, with the remaining 27 million related to discontinued
operations.
In the first six months of fiscal 2008, the total amount of these expenses was 302 million,
with the total for continuing operations amounting to 241 million and the remaining 61 million
related to discontinued operations. For more information regarding these matters see Notes to
Interim Consolidated Financial Statements.
Siemens completes the first tranche of its share buyback program. The tranche totalled
approximately 2.0 billion in purchases for 24,854,541 shares, and was completed shortly after the
close of the quarter on April 8, 2008. For further information see Liquidity, capital resources
and capital requirements below.
3
Results of Siemens
Results of Siemens Second quarter of fiscal 2008
The following discussion presents selected information for Siemens for the second quarter of
fiscal 2008:
Orders were 23.371 billion, a 12% increase from the same quarter a year earlier. Revenue was
18.094 billion, up 1% compared to the prior-year period. On an organic basis, excluding currency
translation and portfolio effects, orders rose 15% year-over-year and revenue increased 2%.
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New Orders (location of customer) |
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% Change |
|
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|
|
|
|
Second quarter |
|
|
vs. previous year |
|
|
therein |
|
(
in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
Currency |
|
|
Portfolio |
|
Germany |
|
|
3,786 |
|
|
|
3,085 |
|
|
|
23 |
% |
|
|
21 |
% |
|
|
0 |
% |
|
|
2 |
% |
Europe (other than Germany) |
|
|
7,567 |
|
|
|
7,264 |
|
|
|
4 |
% |
|
|
6 |
% |
|
|
(3 |
)% |
|
|
1 |
% |
Americas |
|
|
5,834 |
|
|
|
5,661 |
|
|
|
3 |
% |
|
|
10 |
% |
|
|
(13 |
)% |
|
|
6 |
% |
Asia-Pacific |
|
|
3,630 |
|
|
|
3,092 |
|
|
|
17 |
% |
|
|
19 |
% |
|
|
(6 |
)% |
|
|
4 |
% |
Africa, Near and Middle East, C.I.S.** |
|
|
2,554 |
|
|
|
1,748 |
|
|
|
46 |
% |
|
|
54 |
% |
|
|
(8 |
)% |
|
|
0 |
% |
Siemens |
|
|
23,371 |
|
|
|
20,850 |
|
|
|
12 |
% |
|
|
15 |
% |
|
|
(6 |
)% |
|
|
3 |
% |
|
|
|
* |
|
Excluding currency translation and portfolio effects. |
|
** |
|
Commonwealth of Independent States. |
Order growth in the second quarter was well balanced, particularly from an organic
perspective, with most regions showing double-digit growth compared to the prior-year period.
Europe outside Germany, Siemens largest region, increased orders 4% year-over-year highlighted by
healthy demand at A&D, Med and PG. In the Americas, the leaders were PG, TS, Med and A&D. New
orders in Germany during the quarter included a number of major contract wins at PG and a large
order at Med, as well as continued growth at A&D and PTD. Asia-Pacific again delivered broad-based,
double-digit order growth for Siemens. The region comprising Africa, Near and Middle East and
C.I.S. jumped 46% compared to the second quarter a year earlier, on the strength of large energy
infrastructure orders at PTD.
|
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|
|
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|
|
|
|
|
|
|
|
|
Revenue (location of customer) |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
Second quarter |
|
|
vs. previous year |
|
|
therein |
|
(
in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
Currency |
|
|
Portfolio |
|
Germany |
|
|
2,918 |
|
|
|
3,103 |
|
|
|
(6 |
)% |
|
|
(7 |
)% |
|
|
0 |
% |
|
|
1 |
% |
Europe (other than Germany) |
|
|
5,795 |
|
|
|
5,692 |
|
|
|
2 |
% |
|
|
1 |
% |
|
|
(2 |
)% |
|
|
3 |
% |
Americas |
|
|
4,921 |
|
|
|
4,756 |
|
|
|
3 |
% |
|
|
9 |
% |
|
|
(13 |
)% |
|
|
7 |
% |
Asia-Pacific |
|
|
2,975 |
|
|
|
2,796 |
|
|
|
6 |
% |
|
|
5 |
% |
|
|
(4 |
)% |
|
|
5 |
% |
Africa, Near and Middle East, C.I.S.** |
|
|
1,485 |
|
|
|
1,654 |
|
|
|
(10 |
)% |
|
|
(5 |
)% |
|
|
(4 |
)% |
|
|
(1 |
)% |
Siemens |
|
|
18,094 |
|
|
|
18,001 |
|
|
|
1 |
% |
|
|
2 |
% |
|
|
(5 |
)% |
|
|
4 |
% |
|
|
|
* |
|
Excluding currency translation and portfolio effects. |
|
** |
|
Commonwealth of Independent States. |
Revenue in Europe outside Germany was on pace with 2% growth for the quarter. In the Americas,
revenue in the U.S. edged up year-over-year despite strong currency translation effects, led by Med
and A&D. On an organic basis, excluding currency translation effects of negative 16% and portfolio
effects of positive 9%, U.S. revenues rose 7%. All Groups in Operations except PG reported higher
revenue in Asia-Pacific year-over-year, with China contributing a 21% increase. Germany and the
region comprising Africa, Near and Middle East and C.I.S. posted revenue below the prior-year
level. From a Siemens Group perspective, the industrial Groups generated their strongest revenue
growth in Asia-Pacific compared to the prior-year quarter, while revenue in the energy-related
Groups grew fastest in the Americas and Europe outside Germany. Meds healthcare portfolio found
revenue growth in all regions, including new volume from the acquisition of Dade Behring Holdings,
Inc.
4
(Dade Behring) between the periods under review. Revised estimates of project completion,
mainly at PG, reduced revenue for Siemens as a whole by approximately 250 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
|
|
(
in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
Gross profit on revenue |
|
|
4,916 |
|
|
|
5,263 |
|
|
|
(7 |
)% |
as percentage of revenue |
|
|
27.2 |
% |
|
|
29.2 |
% |
|
|
|
|
Gross profit for the second quarter of fiscal 2008 fell 7% year-over-year and gross profit
margin decreased to 27.2% from 29.2% a year earlier, mainly due to the charges posted at PG, TS and
Siemens IT Solutions and Services as noted above. Most of the remaining Groups increased their
gross margins, led by PTD and A&D which benefited from higher revenue and associated economies of
scale.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
|
|
(
in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
Research and development expenses |
|
|
(918 |
) |
|
|
(814 |
) |
|
|
13 |
% |
as percentage of revenue |
|
|
5.1 |
% |
|
|
4.5 |
% |
|
|
|
|
Marketing, selling and general administrative expenses |
|
|
(3,243 |
) |
|
|
(2,926 |
) |
|
|
11 |
% |
as percentage of revenue |
|
|
17.9 |
% |
|
|
16.3 |
% |
|
|
|
|
Other operating income |
|
|
187 |
|
|
|
105 |
|
|
|
78 |
% |
Other operating expense |
|
|
(257 |
) |
|
|
(161 |
) |
|
|
60 |
% |
Income from investments accounted for using the equity method, net |
|
|
101 |
|
|
|
184 |
|
|
|
(45 |
)% |
Financial income (expense), net |
|
|
3 |
|
|
|
30 |
|
|
|
(90 |
)% |
Research and development expenses increased to 918 million, up 13% from 814 million a year
earlier. The primary factors in this increase were higher expenses at A&D and Med, mainly due to
acquisitions. As A&D and Med gained a larger proportion of Siemens revenue, their
higher-than-average R&D expense ratio relative to other Groups contributed to an increase in the
R&D expense ratio for Siemens overall, which rose to 5.1% from 4.5% in the prior-year quarter.
Marketing, selling and general administrative (SG&A) expenses in the second quarter increased
year-over-year, from 2.926 billion to 3.243 billion, primarily impacted by higher marketing and
selling expenses due to an acquisition at A&D between the periods under review, as well as by
higher expenses for Corporate items. Among these were a 32 million donation to the Siemens
Foundation in the U.S and
64 million,
including an impairment, relating to a
regional sales organization in Germany.
Other operating income was 187 million in the second quarter of fiscal 2008, compared to 105
million a year earlier. The current period includes a gain of 30 million on the sale of the
hydrocarbon service business at I&S.
Other operating expense increased year-over-year, to 257 million, from 161 million in the
second quarter a year earlier. The difference was due primarily to higher expenses for compliance
investigations in the current quarter, amounting to 148 million, compared to 13 million in the
prior-year quarter. Other operating expense in the prior-year period also included a goodwill
impairment of 52 million at a regional payphone unit included in Other Operations.
Income from investments accounted for using the equity method, net was 101 million compared
to 184 million in the same period a year earlier. The change was due mainly to an equity
investment loss of 45 million in the current period related to our equity stake in NSN, which was
formed between the periods under review, and lower equity investment income related to BSH Bosch
und Siemens Hausgeräte GmbH (BSH).
Financial income (expense), net decreased to 3 million, down from 30 million in the second
quarter a year earlier, primarily impacted by higher expenses associated with asset retirement
obligations.
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
|
|
(
in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
Income from continuing operations before income taxes |
|
|
789 |
|
|
|
1,681 |
|
|
|
(53 |
)% |
Income taxes |
|
|
(224 |
) |
|
|
(395 |
) |
|
|
(43 |
)% |
as percentage of income from continuing operations before income taxes |
|
|
28 |
% |
|
|
23 |
% |
|
|
|
|
Income from continuing operations |
|
|
565 |
|
|
|
1,286 |
|
|
|
(56 |
)% |
Loss from discontinued operations, net of income taxes |
|
|
(153 |
) |
|
|
(27 |
) |
|
|
>200 |
% |
Net income |
|
|
412 |
|
|
|
1,259 |
|
|
|
(67 |
)% |
Net income attributable to minority interest |
|
|
28 |
|
|
|
63 |
|
|
|
|
|
Net income attributable to shareholders of Siemens AG |
|
|
384 |
|
|
|
1,196 |
|
|
|
(68 |
)% |
Income from continuing operations before income taxes decreased 53% from 1.681 billion in the
prior-year quarter to 789 million in the current quarter. The change year-over-year is due
primarily to the charges at PG, TS and Siemens IT Solutions and Services noted above. The effective
tax rate was 28% in the current quarter compared to 23% in the prior-year period, which included
beneficial tax effects. Income from continuing operations decreased to 565 million from 1.286
billion in the second quarter a year earlier.
Discontinued operations include former Com activities as well as SV, which was sold to
Continental AG in the first quarter of fiscal 2008. The former Com activities include the
enterprise networks business, which is held for disposal, the telecommunications carrier activities
transferred into NSN between the periods under review, and the mobile devices business sold to BenQ
Corporation. In the second quarter, discontinued operations posted a loss of 153 million compared
to a loss of 27 million in the same quarter a year earlier. The prior-year period included
positive operating results at SV and at telecommunications carrier activities. The enterprise
networks business took 109 million in severance charges and a 12 million asset impairment in the
current period. A year earlier, this business took a goodwill impairment of 148 million.
Net income for Siemens in the second quarter was 412 million, compared to 1.259 billion in
the same period a year earlier. Net income attributable to shareholders of Siemens AG was 384
million, down from 1.196 billion in the prior-year quarter.
6
Results of Siemens First six months of fiscal 2008
The following discussion presents selected information for Siemens for the first six months of
fiscal 2008:
In the first six months of fiscal 2008, Siemens orders and revenue expanded, with 10% growth
in orders and 5% increase in revenue. On an organic basis, excluding the net effect of currency
translation and portfolio transactions, orders rose 11% and revenue increased 4%. Europe outside
Germany, Siemens largest regional market, contributed 10% order and revenue growth. In the
Americas region, orders and revenue grew 4% and 5%, respectively. The Asia-Pacific region grew more
rapidly from a smaller base, with 26% order growth and 10% revenue growth in the first six months
compared to the same period a year earlier. The region comprised of Africa, Near and Middle East
and C.I.S. saw a 24% surge in orders, while revenue remained stable year-over-year. Orders in
Germany were level year-over-year, and revenue decreased 4%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Orders (location of customer) |
|
|
|
Six months ended |
|
|
% Change |
|
|
|
|
|
|
March 31, |
|
|
vs. previous year |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
Currency |
|
|
Portfolio |
|
Germany |
|
|
7,291 |
|
|
|
7,307 |
|
|
|
0 |
% |
|
|
(3 |
)% |
|
|
0 |
% |
|
|
3 |
% |
Europe (other than Germany) |
|
|
15,828 |
|
|
|
14,335 |
|
|
|
10 |
% |
|
|
10 |
% |
|
|
(2 |
)% |
|
|
2 |
% |
Americas |
|
|
11,936 |
|
|
|
11,429 |
|
|
|
4 |
% |
|
|
8 |
% |
|
|
(11 |
)% |
|
|
7 |
% |
Asia-Pacific |
|
|
7,454 |
|
|
|
5,896 |
|
|
|
26 |
% |
|
|
26 |
% |
|
|
(5 |
)% |
|
|
5 |
% |
Africa, Near and Middle East, C.I.S.** |
|
|
5,104 |
|
|
|
4,127 |
|
|
|
24 |
% |
|
|
28 |
% |
|
|
(5 |
)% |
|
|
1 |
% |
Siemens |
|
|
47,613 |
|
|
|
43,094 |
|
|
|
10 |
% |
|
|
11 |
% |
|
|
(5 |
)% |
|
|
4 |
% |
|
|
|
* |
|
Excluding currency translation and portfolio effects.
|
|
** |
|
Commonwealth of Independent States. |
The Asia-Pacific region and Europe outside Germany as well as the Africa, Near and Middle East
and C.I.S. region posted double-digit order growth compared to the first six months a year earlier.
The strongest increases in Europe outside Germany came at PG, which won a number of major new
contracts, along with A&D, Med and PTD. I&S and TS took in fewer major orders in the region
compared to the prior-year period. Within Asia-Pacific, orders climbed 26% including 39% growth in
China and a 17% increase in India. I&S, A&D, PG and TS reported the strongest expansion in
Asia-Pacific. Orders in the Africa, Near and Middle East and C.I.S. region also rose at a
double-digit rate, highlighted by major contracts for PG and I&S in Russia. In the Americas region,
the U.S. was the pace-setter with 9% growth, again powered by substantial new orders at PG plus new
volume from A&Ds acquisition of UGS Corp. (UGS) and Meds acquisition of Dade Behring between the
periods under review. Excluding portfolio effects of positive 8% and negative currency translation
effects of 16%, orders in the U.S. for the first half were up 17% year-over-year. A&Ds strong
growth in Germany in the first six months was offset by order declines at TS and Siemens IT
Solutions and Services in this region, compared to the prior-year period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (location of customer) |
|
|
|
Six months ended |
|
|
% Change |
|
|
|
|
|
|
March 31, |
|
|
vs. previous year |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
Currency |
|
|
Portfolio |
|
Germany |
|
|
6,073 |
|
|
|
6,343 |
|
|
|
(4 |
)% |
|
|
(6 |
)% |
|
|
0 |
% |
|
|
2 |
% |
Europe (other than Germany) |
|
|
11,978 |
|
|
|
10,918 |
|
|
|
10 |
% |
|
|
8 |
% |
|
|
(1 |
)% |
|
|
3 |
% |
Americas |
|
|
9,584 |
|
|
|
9,085 |
|
|
|
5 |
% |
|
|
9 |
% |
|
|
(12 |
)% |
|
|
8 |
% |
Asia-Pacific |
|
|
5,707 |
|
|
|
5,198 |
|
|
|
10 |
% |
|
|
8 |
% |
|
|
(4 |
)% |
|
|
6 |
% |
Africa, Near and Middle East, C.I.S.** |
|
|
3,152 |
|
|
|
3,186 |
|
|
|
(1 |
)% |
|
|
2 |
% |
|
|
(3 |
)% |
|
|
0 |
% |
Siemens |
|
|
36,494 |
|
|
|
34,730 |
|
|
|
5 |
% |
|
|
4 |
% |
|
|
(4 |
)% |
|
|
5 |
% |
|
|
|
* |
|
Excluding currency translation and portfolio effects.
|
|
** |
|
Commonwealth of Independent States. |
Revenue in Siemens international business rose by 7% year-over-year, including strong organic
growth in Europe outside Germany, the Americas and Asia-Pacific. From a Siemens Group perspective
A&D, Med and
7
PTD saw double-digit increases in revenue compared to the first six months of the prior year.
Within the Americas, new revenue from acquisitions was more than offset by the weakening of the
U.S. dollar against the euro between the periods under review. Nevertheless the growth in the U.S.
reached 3% year-over-year, led by A&D and Med. On an organic basis, excluding currency translation
effects of negative 15% and portfolio effects of positive 10%, U.S. revenues were up 8%. Growth in
Asia-Pacific was broad-based, as almost all Groups within Operations posted increases compared to
the first six months a year earlier. China contributed 17% growth, on substantial revenue increases
at A&D, TS and Osram. While revenue in India came in 2% lower than the prior-year period, the
book-to-bill ratio for India rose to 1.5 in the current period. In the Africa, Near and Middle East
and C.I.S. region, revenue rose excluding currency translation and portfolio effects, highlighted
by 35% growth in Russia. Germany reported lower revenues for the first half of fiscal 2008 compared
to the same period a year earlier, as growth at A&D, Med, PTD and Osram was outweighed by declines
at TS, PG and Siemens Building Technologies (SBT).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
Gross profit on revenue |
|
|
10,221 |
|
|
|
9,728 |
|
|
|
5 |
% |
as percentage of revenue |
|
|
28.0 |
% |
|
|
28.0 |
% |
|
|
|
|
Gross profit for the first six months of fiscal 2008 increased 5% year-over-year, in-line with
growth in revenue. As a result, gross profit margin remained stable at 28.0%. Gross profit rose
significantly at A&D, Med, PTD and I&S, which combined higher revenue with improved gross profit
margins. In contrast, PG, TS and Siemens IT Solutions and Services posted a decrease in gross
profits, primarily due to the second quarter project charges mentioned above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
Research and development expenses |
|
|
(1,765 |
) |
|
|
(1,539 |
) |
|
|
15 |
% |
as percentage of revenue |
|
|
4.8 |
% |
|
|
4.4 |
% |
|
|
|
|
Marketing, selling and general administrative expenses |
|
|
(6,298 |
) |
|
|
(5,598 |
) |
|
|
13 |
% |
as percentage of revenue |
|
|
17.3 |
% |
|
|
16.1 |
% |
|
|
|
|
Other operating income |
|
|
377 |
|
|
|
318 |
|
|
|
19 |
% |
Other operating expense |
|
|
(463 |
) |
|
|
(659 |
) |
|
|
(30 |
)% |
Income from investments accounted for using the equity method, net |
|
|
209 |
|
|
|
327 |
|
|
|
(36 |
)% |
Financial income (expense), net |
|
|
25 |
|
|
|
41 |
|
|
|
(39 |
)% |
Research and development expenses increased to 1.765 billion from 1.539 billion a year
earlier, led by higher outlays at A&D and Med, significantly influenced by business expansion
between the periods under review. R&D expenses as a percentage of revenue rose to 4.8% from 4.4% in
the previous period. |
|
SG&A expenses rose to 6.298 billion, up from 5.598 billion in the first half of fiscal 2007.
While fast-growing Groups within Operations were responsible for a substantial portion of this
increase, costs for Corporate items also increased significantly. The latter increase includes
costs associated with the transformation of Siemens corporate structure including costs at a
regional sales organization in Germany. |
|
Other operating income for the first half was higher than in the prior-year period, as
increased gains from sales of real estate in the current period more than offset a decline in gains
from the sales of businesses. Other operating expense came in below the level in the first six
months of fiscal 2007, which included a previously disclosed antitrust penalty of 423 million.
While both periods included expenses for outside advisors engaged in compliance investigations,
those expenses were substantially higher in the current period at 241 million compared to 13
million a year earlier. Other operating expenses in the six months ended March 31, 2008 also
included a goodwill impairment in the amount of 70 million related to the buildings and
infrastructure activities which were acquired as part of the VA Technologie AG acquisition in
fiscal 2005 and which are included in Other Operations. For comparison, the prior-year period
included a goodwill impairment of 52 million at a regional payphone unit included in Other
Operations. |
|
Income from investments accounted for using the equity method, net declined year-over-year to
209 million in the current period, due primarily to negative equity investment income of 82
million related to NSN, which was formed between the periods under review, and lower equity
investment income related to BSH. |
8
Financial income (expense), net decreased to 25 million, down from 41 million in the first
half a year earlier, primarily impacted by higher expenses associated with asset retirement
obligations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
Income from continuing operations before income taxes |
|
|
2,306 |
|
|
|
2,618 |
|
|
|
(12 |
)% |
Income taxes |
|
|
(663 |
) |
|
|
(711 |
) |
|
|
(7 |
)% |
as percentage of income from continuing operations before income taxes |
|
|
29 |
% |
|
|
27 |
% |
|
|
|
|
Income from continuing operations |
|
|
1,643 |
|
|
|
1,907 |
|
|
|
(14 |
)% |
Income from discontinued operations, net of income taxes |
|
|
5,244 |
|
|
|
140 |
|
|
|
>200 |
% |
Net income |
|
|
6,887 |
|
|
|
2,047 |
|
|
|
>200 |
% |
Net income attributable to minority interest |
|
|
71 |
|
|
|
112 |
|
|
|
|
|
Net income attributable to shareholders of Siemens AG |
|
|
6,816 |
|
|
|
1,935 |
|
|
|
>200 |
% |
Income from continuing operations before income taxes was 2.306 billion compared to 2.618
billion in the first six months a year earlier. The current period includes lower earnings in the
Groups from operations due to substantial project charges especially
in the second quarter for
PG, TS and Siemens IT Solutions and Services as mentioned above, higher SG&A expenses, as well as a decline in equity
investment income year-over-year, primarily due to NSN. The effective tax rate was 29% in the first
six months of fiscal 2008 compared to 27% in the prior-year period. As a result, income from
continuing operations in the first six months was 1.643 billion, down 14% from 1.907 billion a
year earlier.
Discontinued operations include former Com activities as well as SV, which was sold to
Continental AG in the first quarter of fiscal 2008. The former Com activities include the
enterprise networks business, which is held for disposal, the carrier-related business transferred
into NSN between the periods under review, and the mobile devices business sold to BenQ
Corporation. In the first six months, income from discontinued operations was 5.244 billion
compared to 140 million in the same period a year earlier. The difference is due mainly to an
income of approximately 5.4 billion related to SV, including operating results along with a
substantial gain on the sale of the business. The result for former Com activities in the first six
months was a negative 188 million, including severance charges and an impairment of long-lived
assets at the enterprise networks business, as well as expenses for outside advisors engaged in
connection with investigations into alleged violations of anti-corruption laws and related matters.
In the prior-year period the result was a negative 63 million, as an impairment at the enterprise
networks business more than offset positive earnings from the carrier activities. For additional
information with respect to discontinued operations, see Notes to Interim Consolidated Financial
Statements.
Net income for Siemens in the first six months was 6.887 billion, compared to 2.047 billion
in the same period a year earlier. Net income attributable to shareholders of Siemens AG was 6.816
billion, up from 1.935 billion in the prior-year.
Portfolio activities
At the beginning of November 2007, we completed our acquisition of Dade Behring. Med is now
integrating Dade Behring into its Diagnostics division together with two other acquisitions made in
prior years: Diagnostic Products Corporation (DPC) and the diagnostics division of Bayer AG
(Bayer). The acquisition of Dade Behring expands Meds position in the growing laboratory
diagnostics market and is strongly complementary to the prior Diagnostics acquisitions. The
aggregate consideration, including the assumption of debt, amounts to approximately 4.9 billion
(including 69 million cash acquired). We have not yet finalized the purchase price allocation
(PPA) for this transaction. More information on PPA and integration costs related to the
acquisitions mentioned here are described in more detail below in
Segment information analysis.
At the beginning of December 2007, we closed the sale of SV to Continental AG of Germany.
Aggregate consideration was approximately 11.4 billion net of cash sold.
We completed certain other portfolio transactions during the first six months of fiscal 2008
which did not have a significant effect on our Interim Consolidated Financial Statements. For
further information on acquisitions and dispositions, see Notes to Interim Consolidated Financial
Statements.
9
Segment information analysis
Operations
Automation and Drives (A&D)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
Six months ended March 31, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
712 |
|
|
|
526 |
|
|
|
35 |
% |
|
|
|
|
|
|
1,367 |
|
|
|
976 |
|
|
|
40 |
% |
|
|
|
|
Group profit margin |
|
|
16.7 |
% |
|
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
|
16.4 |
% |
|
|
13.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
4,271 |
|
|
|
3,711 |
|
|
|
15 |
% |
|
|
11 |
% |
|
|
8,359 |
|
|
|
7,101 |
|
|
|
18 |
% |
|
|
14 |
% |
New orders |
|
|
4,814 |
|
|
|
4,154 |
|
|
|
16 |
% |
|
|
14 |
% |
|
|
9,597 |
|
|
|
8,173 |
|
|
|
17 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (3)% and (4)% on revenue and orders, respectively, and portfolio effects of 7%
and 6% on revenue and orders, respectively. |
|
** |
|
Excluding currency translation effects of (3)% on revenue and orders, and portfolio effects of 7% and 6% on revenue and
orders, respectively. |
A&Ds second-quarter Group profit was 712 million, as the Group operated at high capacity
utilization in a strong market for automation and control solutions. Group profit includes PPA
effects and integration costs related to A&Ds product lifecycle management (PLM) software
business, acquired between the periods under review, and the acquisition of Flender Holdings GmbH.
PPA effects were 35 million and integration costs were 2 million in the current quarter, compared
to PPA effects of 10 million in the prior-year period. Revenue for A&D climbed 15% year-over-year,
to 4.271 billion, and second-quarter orders rose 16%, to 4.814 billion. These topline figures
included double-digit growth in Germany as well as internationally. During the quarter, Siemens
entered into an agreement to sell A&Ds wireless modules business to a consortium with
complementary expertise in the global machine-to-machine (M2M) modules business. Siemens also
initiated a carve-out of A&Ds electronics assembly business.
Group profit for the first six months of fiscal 2008 rose 40% at A&D, to 1.367 billion,
despite significantly higher PPA effects of 93 million and integration costs of 7 million only
partly offset by a gain of 36 million in the prior quarter on the sale of a business. A year
earlier, PPA effects in the first half amounted to 20 million. Including the new volume from UGS,
A&D increased six-month orders by 17%, to 9.597 billion, and revenue by 18%, to 8.359 billion,
with double-digit growth in all major regions of the world.
Industrial Solutions and Services (I&S)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
Six months ended March 31, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
167 |
|
|
|
100 |
|
|
|
67 |
% |
|
|
|
|
|
|
288 |
|
|
|
190 |
|
|
|
52 |
% |
|
|
|
|
Group profit margin |
|
|
7.8 |
% |
|
|
4.6 |
% |
|
|
|
|
|
|
|
|
|
|
6.6 |
% |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
2,128 |
|
|
|
2,172 |
|
|
|
(2 |
)% |
|
|
2 |
% |
|
|
4,379 |
|
|
|
4,245 |
|
|
|
3 |
% |
|
|
7 |
% |
New orders |
|
|
2,602 |
|
|
|
2,434 |
|
|
|
7 |
% |
|
|
12 |
% |
|
|
5,894 |
|
|
|
5,491 |
|
|
|
7 |
% |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (4)% and (5)% on revenue and orders, respectively. |
|
** |
|
Excluding currency translation effects of (4)% on revenue and orders. |
I&S posted Group profit of 167 million in the second quarter of fiscal 2008, benefiting from
a 30 million gain on the sale of its hydrocarbon service business as well as payment of a
performance incentive related to a large postal automation contract in the U.S. Revenue was 2.128
billion in the second quarter, near the prior-year level, and orders rose 7% year-over-year, to
2.602 billion. Both topline figures include negative currency translation effects and somewhat
lower demand in Germany compared to the second quarter a year earlier.
Group profit for the first half of fiscal 2008 at I&S climbed 52% year-over-year, to 288
million, as all divisions posted higher earnings year-over-year. The strongest earnings
contributions came from Metal Technologies and Infrastructure Logistics, which included the
performance incentive mentioned above. Group profit in the current period also benefited from the
30 million divestment gain mentioned above. Both revenue
10
and orders for the first half rose compared to the prior year, despite negative currency
translation effects. I&S expanded its water treatment business in Asia-Pacific with an acquisition
in the second quarter. After the close of the quarter, I&S extended its capabilities with an
acquisition in its metal technologies business.
Siemens Building Technologies (SBT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
Six months ended March 31, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
90 |
|
|
|
100 |
|
|
|
(10 |
)% |
|
|
|
|
|
|
168 |
|
|
|
172 |
|
|
|
(2 |
)% |
|
|
|
|
Group profit margin |
|
|
7.5 |
% |
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
7.0 |
% |
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
1,201 |
|
|
|
1,335 |
|
|
|
(10 |
)% |
|
|
(5 |
)% |
|
|
2,402 |
|
|
|
2,548 |
|
|
|
(6 |
)% |
|
|
(1 |
)% |
New orders |
|
|
1,333 |
|
|
|
1,364 |
|
|
|
(2 |
)% |
|
|
2 |
% |
|
|
2,628 |
|
|
|
2,750 |
|
|
|
(4 |
)% |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (5)% on revenue and orders, and portfolio effects of 1% on orders. |
|
** |
|
Excluding currency translation effects of (4)% on revenue and orders, and portfolio effects of (1)% on revenue. |
Group profit at SBT was 90 million in the second quarter of fiscal 2008. Group profit margin
remained level year-over-year, even as revenue declined to 1.201 billion from the prior-year level
which included completion of major projects in Europe and the Middle East. Orders totaled 1.333
billion. Both topline figures include negative currency effects related primarily to SBTs U.S.
business.
SBTs Group profit for the first half of fiscal 2008 declined slightly compared to the prior
year. Both revenue and orders came in lower, in the current period primarily due to strong negative
currency translation effects in the Groups U.S. business.
Osram
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
Six months ended March 31, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
122 |
|
|
|
125 |
|
|
|
(2 |
)% |
|
|
|
|
|
|
248 |
|
|
|
248 |
|
|
|
0 |
% |
|
|
|
|
Group profit margin |
|
|
10.3 |
% |
|
|
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
10.4 |
% |
|
|
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
1,188 |
|
|
|
1,189 |
|
|
|
(0 |
)% |
|
|
6 |
% |
|
|
2,381 |
|
|
|
2,363 |
|
|
|
1 |
% |
|
|
6 |
% |
New orders |
|
|
1,188 |
|
|
|
1,189 |
|
|
|
(0 |
)% |
|
|
6 |
% |
|
|
2,381 |
|
|
|
2,363 |
|
|
|
1 |
% |
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (7)% on revenue and orders, and portfolio effects of 1% on revenue and orders. |
|
** |
|
Excluding currency translation effects of (6)% on revenue and orders, and portfolio effects of 1% on revenue and orders. |
Osram delivered 122 million in Group profit in the second quarter of fiscal 2008, on revenue
of 1.188 billion. The Groups continued rapid growth in Asia-Pacific and other emerging markets
was offset by strong negative currency translation effects in Osrams large NAFTA business, keeping
reported results for the quarter near the level of the prior-year period.
First-half year Group profit at Osram matched the level a year earlier. While revenue and
orders in the Americas declined on negative currency translation effects, growth in Asia-Pacific
and other emerging markets resulted in higher six-month revenue and orders for the Group as a
whole. After the close of the quarter, Osram announced an agreement to sell its Global Tungsten &
Powders unit. Completion of the transaction is subject to regulatory review.
11
Transportation Systems (TS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
Six months ended March 31, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
(153 |
) |
|
|
58 |
|
|
|
|
|
|
|
|
|
|
|
(131 |
) |
|
|
105 |
|
|
|
|
|
|
|
|
|
Group profit margin |
|
|
(15.6 |
)% |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
(6.5 |
)% |
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
982 |
|
|
|
1,161 |
|
|
|
(15 |
)% |
|
|
(14 |
)% |
|
|
2,030 |
|
|
|
2,234 |
|
|
|
(9 |
)% |
|
|
(8 |
)% |
New orders |
|
|
838 |
|
|
|
714 |
|
|
|
17 |
% |
|
|
19 |
% |
|
|
2,278 |
|
|
|
1,933 |
|
|
|
18 |
% |
|
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (1)% and (2)% on revenue and orders, respectively. |
|
** |
|
Excluding currency translation effects of (1)% and (2)% on revenue and orders, respectively. |
In the second quarter of fiscal 2008, TS took 209 million in charges and posted a loss of
153 million. The largest single charge in the quarter related to the Shanghai Transrapid monorail.
A majority of the charges resulted from a substantially completed review of projects at TS,
including Combino. Revenue of 982 million came in lower than the prior-year period, due in part to
lower billings on large projects in the Turnkey Systems division. Orders in both periods under
review included a relatively low number of major new contracts.
TS recorded a loss of 131 million in the first half of fiscal 2008, including the charges
related to the project review mentioned above as well as 32 million in additional charges related
to Combino in the first quarter. While the first half a year earlier also included charges at major
projects, they were largely offset by a 76 million net gain on the sale of the Groups locomotive
leasing business. Lower billings at large projects in the Turnkey Systems division contributed to
the decline in first-half revenue compared to the prior-year. Orders increased 18% year-over-year
to 2.278 billion, as TS booked a higher number of major orders in the first six months than in the
same period a year earlier. TS intends to realign its organization and adjust its cost structure in
coming quarters.
Power Generation (PG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
Six months ended March 31, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
(221 |
) |
|
|
330 |
|
|
|
|
|
|
|
|
|
|
|
(86 |
) |
|
|
499 |
|
|
|
|
|
|
|
|
|
Group profit margin |
|
|
(7.5 |
)% |
|
|
10.7 |
% |
|
|
|
|
|
|
|
|
|
|
(1.5 |
)% |
|
|
8.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
2,932 |
|
|
|
3,072 |
|
|
|
(5 |
)% |
|
|
1 |
% |
|
|
5,901 |
|
|
|
5,798 |
|
|
|
2 |
% |
|
|
6 |
% |
New orders |
|
|
6,062 |
|
|
|
5,017 |
|
|
|
21 |
% |
|
|
29 |
% |
|
|
11,954 |
|
|
|
10,034 |
|
|
|
19 |
% |
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (6)% and (8)% on revenue and orders, respectively. |
|
** |
|
Excluding currency translation effects of (5)% and (6)% on revenue and orders, respectively, and portfolio effects of 1% on revenue and orders. |
PG completed a review of project risks in its fossil power turnkey solutions business in the
second quarter. The review identified resource constraints leading to project delays, expiring
supplier price agreements, and significantly higher commodity prices. Based on the review, the
Group recorded charges of 559 million in the fossil power turnkey business and posted a loss of
221 million in the second quarter compared to Group profit of 330 million in the same period a
year earlier. The largest single impact was 163 million at a technically challenging project in
Finland (Olkiluoto), which was less than 50% complete at the close of the quarter. PG expects
negative margin impacts in coming quarters, stemming from the project review mentioned above. The
other businesses within PG were all profitable in both periods under review. These include wind
power, industrial applications, products, and plant services. Equity investment income at PG was
21 million for the quarter, including a positive contribution from Areva NP. In the prior-year
period, equity investments produced a negative result. PGs revenue in the current quarter includes
a reduction of approximately 200 million due to revised estimates of completion at some projects.
Reported revenue also reflects negative currency translation effects related to growth in the
Americas. Orders climbed 21%, to 6.062 billion, as demand more than doubled in the wind and
product businesses compared to the same quarter a year earlier and PG won several new orders for
high-efficiency combined-cycle power plants.
PGs loss of 86 million in the first six months of fiscal 2008 was largely due to the project
review charges in the second quarter of fiscal 2008 mentioned above in the fossil power turnkey
solutions business as well as
12
further charges of approximately 200 million involving a number of large projects, booked in
the first quarter of fiscal 2008. A year earlier, charges in this business in the first half-year
were lower and confined more particularly to the project in Finland. Most of PGs other businesses
turned in higher earnings in the current period compared to the prior-year period. Similarly,
equity investment income showed a positive swing year-over-year, contributing 36 million to Group
profit in the current six months compared to a negative 1 million in the prior-year period. PGs
revenue in the first half increased to 5.901 billion, despite the revenue reduction noted above.
Orders jumped 19% year-over-year, to 11.954 billion, from an already high basis of comparison in
the prior-year. Major orders were most numerous in Europe and the Americas. PG continues to
emphasize more selective order intake and increased engineering and project management
capabilities, particularly in the fossil power turnkey solutions business. Equity investment income
is expected to remain volatile in coming quarters.
Power Transmission and Distribution (PTD)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
Six months ended March 31, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
220 |
|
|
|
143 |
|
|
|
54 |
% |
|
|
|
|
|
|
424 |
|
|
|
273 |
|
|
|
55 |
% |
|
|
|
|
Group profit margin |
|
|
11.6 |
% |
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
11.0 |
% |
|
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
1,903 |
|
|
|
1,756 |
|
|
|
8 |
% |
|
|
13 |
% |
|
|
3,859 |
|
|
|
3,484 |
|
|
|
11 |
% |
|
|
15 |
% |
New orders |
|
|
2,864 |
|
|
|
2,476 |
|
|
|
16 |
% |
|
|
23 |
% |
|
|
5,673 |
|
|
|
5,622 |
|
|
|
1 |
% |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (5)% and (7)% on revenue and orders, respectively. |
|
** |
|
Excluding currency translation effects of (4)% on revenue and orders. |
PTDs second-quarter Group profit jumped 54%, to 220 million. Group profit margin also rose
significantly, on a favorable product mix and economies of scale associated with higher revenue.
This latter development was particularly evident in results for the Groups three largest
businesses. PTD as a whole delivered 8% revenue growth and 16% order growth, showing its ability to
respond to varying regional cycles in the global market for secure, high-efficiency power
transmission and distribution. While revenue in the current period reflects significant order
growth in Europe and Asia Pacific in prior periods, new contracts in the second quarter came
primarily from robust demand in Africa and the Middle East.
First-half Group profit at PTD climbed 55% year-over-year, to 424 million, for the same
reasons given above for the second quarter. All divisions within the Group increased their
revenues, and strong operating leverage in the Groups larger divisions generated sharply higher
profits and earnings margins. Orders rose to 5.673 billion, an increase compared to the strong
prior-year period despite negative currency translation effects.
Medical Solutions (Med)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
Six months ended March 31, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
341 |
|
|
|
332 |
|
|
|
3 |
% |
|
|
|
|
|
|
673 |
|
|
|
636 |
|
|
|
6 |
% |
|
|
|
|
Group profit margin |
|
|
12.5 |
% |
|
|
13.4 |
% |
|
|
|
|
|
|
|
|
|
|
12.5 |
% |
|
|
13.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
2,722 |
|
|
|
2,470 |
|
|
|
10 |
% |
|
|
2 |
% |
|
|
5,375 |
|
|
|
4,572 |
|
|
|
18 |
% |
|
|
2 |
% |
New orders |
|
|
2,790 |
|
|
|
2,544 |
|
|
|
10 |
% |
|
|
1 |
% |
|
|
5,596 |
|
|
|
4,755 |
|
|
|
18 |
% |
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excluding currency translation effects of (9)% and (8)% on revenue and orders, respectively, and portfolio effects of 17%
on revenue and orders. |
|
** |
|
Excluding currency translation effects of (7)% on revenue and orders, and portfolio effects of 23% and 22% on revenue and
orders, respectively. |
Med delivered Group profit of 341 million in the second quarter of fiscal 2008. Group profit
margin was strongly influenced by PPA effects and integration costs associated with acquisitions by
Meds Diagnostics division, including the acquisition of Dade Behring between the periods under
review. These factors took approximately 370 basis points from Group profit margin, including PPA
effects of 50 million and integration costs of 52 million. A year earlier, PPA and integration
costs were 37 million and 9 million, respectively, taking 190 basis points from Group profit
margin. Furthermore, these prior-period effects were largely offset by gains on divestments as well
as from the sale of a portion of Meds stake in a joint venture, Draeger Medical AG
13
& Co. Including the PPA and integration effects mentioned above, the Diagnostics division
posted earnings of 50 million on revenue of 817 million in the current quarter. Meds imaging and
IT business continued to deliver solid profitability despite increasing challenges in market
conditions. Second-quarter revenue and orders rose 10% year-over-year, as new volume from the Dade
Behring acquisition more than offset significant negative currency translation effects in the U.S.
Med also won a major order from a particle therapy center, the first of its kind in northern
Germany.
Med delivered 673 million in Group profit in the first half of fiscal 2008, up 6% from 636
million in the same period a year earlier. While Meds imaging and IT businesses contributed the
majority of Group profit in both periods, the Diagnostics division significantly increased its
earnings contribution year-over-year despite substantial PPA and integration costs. Benefiting from
the Dade Behring acquisition between the periods under review, Diagnostics posted 116 million in
earnings on 1.529 billion in revenue in the current six months, compared to 47 million in
earnings on 570 million in the prior-year period. PPA effects totaled 101 million (including 19
million of non-recurring inventory step-up charges) for the first half-year and integration costs
totaled 87 million, cutting the Group profit margin for Med overall by 350 basis points. A year
earlier, PPA effects and integration costs in the first half were 44 million (including 13
million of non-recurring inventory step-up charges) and 15 million, respectively, reducing Group
profit margin by 130 basis points. These effects in the prior-year period were partly offset by
divestment gains mentioned above. Six-month revenue and orders for Med rose 18% year-over-year, as
new volume from acquisitions more than offset strong negative currency translation effects.
Siemens IT Solutions and Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
Six months ended March 31, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
% Change |
|
(
in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted** |
|
Group profit |
|
|
(35 |
) |
|
|
80 |
|
|
|
|
|
|
|
|
|
|
|
35 |
|
|
|
106 |
|
|
|
(67 |
)% |
|
|
|
|
Group profit margin |
|
|
(2.8 |
)% |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
1.3 |
% |
|
|
4.0 |
% |
|
|
|
|
|
|
|
|
Revenue |
|
|
1,266 |
|
|
|
1,351 |
|
|
|
(6 |
)% |
|
|
(4 |
)% |
|
|
2,606 |
|
|
|
2,665 |
|
|
|
(2 |
)% |
|
|
(1 |
)% |
New orders |
|
|
1,445 |
|
|
|
1,106 |
|
|
|
31 |
% |
|
|
38 |
% |
|
|
2,670 |
|
|
|
2,467 |
|
|
|
8 |
% |
|
|
10 |
% |
|
|
|
* |
|
Excluding currency translation effects of (3)% and (5)% on revenue and orders, respectively, and portfolio effects of 1%
and (2)% on revenue and orders, respectively. |
|
** |
|
Excluding currency translation effects of (2)% and (3)% on revenue and orders, respectively, and portfolio effects of 1%
on revenue and orders. |
Results for Siemens IT Solutions and Services in the second quarter of fiscal 2008 were
influenced strongly by charges at projects in the U.K. These charges had a net earnings impact of
89 million, leading to a loss of 35 million in the current quarter. Revenues declined to 1.266
billion in part due to cancellation of a large contract. In contrast, second-quarter orders rose
sharply, to 1.445 billion, as the Group became the lead vendor to NSN for IT infrastructure
services and won a major digital media contract from the BBC in England.
Results for Siemens IT Solutions and Services in the first half of fiscal 2008 largely reflect
the factors mentioned above for the second quarter, as the project charges led to a decline in
Group profit. Primarily the project cancellation and negative currency translation effects held
revenue below the prior-year level, and orders climbed on the strength of the major new contracts
with external customers mentioned above.
Strategic Equity Investments (SEI)
SEI includes results at equity from three companies in which Siemens holds a strategic equity
stake: NSN, BSH, and Fujitsu Siemens Computers (Holding)
B.V. (FSC). SEI contributed equity investment income of 14 million in the second quarter compared
to 99 million in the same period a year earlier. The largest factor in this decline was NSN, which
became part of SEI between the periods under review. NSN took charges of 100 million in the
current quarter, primarily involving integration costs. As a result, Siemens incurred an equity
investment loss of 45 million related to NSN in the current quarter.
Equity investment income for the first half of fiscal 2008 was 40 million, down from 151
million in the prior-year period. The decline was mainly due to NSN, which reported 220 million in
charges for restructuring and integration programs. As a result, Siemens incurred an equity
investment loss of 82 million at NSN.
14
Other Operations
Other Operations consist of centrally held business activities, shared services and other
costs not allocated to a Group. In the second quarter of fiscal 2008, Siemens determined a course
of action for each of the activities within Other Operations and began executing corresponding
measures. Options under this transformation program include integration into an existing Siemens
Group, divestment, joint venture or closure. Partly as a result of the program, sales for Other
Operations declined to 630 million from 743 million in the prior-year quarter, and the loss from
Other Operations narrowed to a negative 54 million from a negative 112 million in the second
quarter a year earlier. Within business activities, earnings at Siemens Home and Office
Communications Devices (SHC) remained stable near break-even. The closure of a regional payphone
unit in Europe entailed 46 million in expenses, primarily for severance. In the prior-year period,
this business had an impairment of 52 million. Regional expenses not allocated to the Groups
decreased compared to the prior-year period.
For the first half of the fiscal year, the result of Other Operations was a negative 118
million compared to a negative 97 million in the prior-year. The difference is due primarily to a
goodwill impairment of 70 million in the first quarter related to a buildings and infrastructure
business that is held for disposal. SHC was profitable in both six-month periods, and costs not
directly related to business activities declined year-over-year. Sales for Other Operations in the
first six months of fiscal 2008 were 1.338 billion, down from 1.543 billion in the prior-year
period.
Reconciliation to financial statements
Reconciliation to financial statements includes various categories of items which are not
allocated to the Groups because the Managing Board has determined that such items are not
indicative of Group performance.
Corporate items, pensions and eliminations
Corporate items, pensions and eliminations totaled a negative 499 million in the second
quarter compared to a negative 169 million in prior-year period. The increase is due primarily to
Corporate items, which totaled a negative 506 million compared to a negative 210 million in the
same quarter a year ago. The largest factor within this change was an increase in costs for outside
advisors engaged in connection with investigations into alleged violations of anti-corruption laws
and related matters as well as remediation activities. These expenses rose to 148 million from 13
million in the prior-year quarter. Corporate items in the current period also include costs
associated with the transformation of Siemens corporate structure. The largest of these was 64
million related to a regional sales organization in Germany, primarily including an impairment.
Finally, the current quarter includes a 32 million donation to the Siemens Foundation in the U.S.,
which conducts prestigious national competitions and scholarship programs in mathematics, science
and engineering.
In the first half of fiscal 2008, Corporate items, pensions and eliminations totaled a
negative 792 million compared to a negative 820 million a year earlier. In the current period,
expenses for outside advisors engaged in compliance investigations were significantly higher
year-over-year, at 241 million compared to 13 million in the prior-year period. The current
period also includes the factors mentioned above for the second quarter. The prior-year period
included a 423 million antitrust penalty imposed by the European Commission on major providers of
gas-isolated switchgear, effects related to hedging activities not qualifying for hedge accounting,
and 54 million primarily to fund job placement companies for former Siemens employees affected by
the bankruptcy of BenQ Mobile GmbH & Co. OHG.
Other interest expense
Other interest expense of Operations for the second quarter of fiscal 2008 was 74 million
compared to 141 million a year earlier. The change year-over-year was mainly due to a decrease in
intra-company financing of Operations by Corporate Treasury. For the first half of fiscal 2008
interest expense was 195 million compared to 229 million a year earlier.
15
Financing and Real Estate
Siemens Financial Services (SFS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
Six months ended March 31, |
|
(
in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
|
|
2008 |
|
|
2007 |
|
|
% Change |
|
Income before
income taxes |
|
|
101 |
|
|
|
137 |
|
|
|
(26 |
)% |
|
|
178 |
|
|
|
220 |
|
|
|
(19 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2008 |
|
Sept. 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,792 |
|
|
|
8,912 |
|
|
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes at SFS was 101 million in the second quarter of fiscal 2008
compared to 137 million in the same period a year earlier. While both periods benefited from
special dividends resulting from divestment gains by a company in which SFS holds an equity
position, the dividend was higher in the prior-year quarter.
For the first half of fiscal 2008, income before income taxes was 178 million, down from 220
million a year earlier, with both periods benefiting from the special dividends mentioned above.
The prior-year period also included a gain on a sale of an investment in the Equity Division.
Siemens Real Estate (SRE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter |
|
|
Six months ended March 31, |
|
(
in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
|
|
2008 |
|
|
2007 |
|
|
% Change |
|
Income before
income taxes |
|
|
60 |
|
|
|
42 |
|
|
|
43 |
% |
|
|
199 |
|
|
|
111 |
|
|
|
79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
416 |
|
|
|
414 |
|
|
|
0 |
% |
|
|
810 |
|
|
|
835 |
|
|
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2008 |
|
Sept. 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,167 |
|
|
|
3,091 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes at SRE in the second quarter of fiscal 2008 was 60 million, up
from 42 million a year earlier on increased gains from real estate sales.
The increase of 79% in income before income taxes for the first half of fiscal 2008 was also
due primarily to higher gains from sales of real estate. Disposals of real estate are expected to
increase in coming quarters.
Eliminations, reclassifications and Corporate Treasury
Income before income taxes from Eliminations, reclassifications and Corporate Treasury was a
negative 2 million compared to a positive 31 million in the same period a year earlier. The
difference was mainly due to negative results from hedging activities not qualifying for hedge
accounting and lower interest income from intra-company financing.
In the first half of fiscal 2008, income before income taxes from eliminations,
reclassifications and Corporate Treasury was 8 million compared to 77 million in the first half a
year earlier. The difference year-over-year was mainly due to negative results from hedging
activities not qualifying for hedge accounting.
16
SUPPLEMENTAL DATA
SIEMENS
Reconciliation
to EBITDA (continuing operations)
(in millions of )
The following table gives additional information on topics included
in Group profit and Income before income taxes and provides a
reconciliation to EBITDA (adjusted):
For the six months ended March 31, 2008 and 2007
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and impairments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
accounted for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of property, plant |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
using the equity |
|
|
Financial income |
|
|
EBIT |
|
|
|
|
|
|
|
|
|
|
and equipment |
|
|
EBITDA |
|
|
|
Group profit |
|
|
method, net(1) |
|
|
(expense), net(2) |
|
|
(adjusted)(3) |
|
|
Amortization(4) |
|
|
and goodwill(5) |
|
|
(adjusted) |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Operations Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automation and Drives (A&D) |
|
|
1,367 |
|
|
|
976 |
|
|
|
|
|
|
|
2 |
|
|
|
3 |
|
|
|
1 |
|
|
|
1,364 |
|
|
|
973 |
|
|
|
105 |
|
|
|
38 |
|
|
|
124 |
|
|
|
106 |
|
|
|
1,593 |
|
|
|
1,117 |
|
Industrial Solutions and Services (I&S) |
|
|
288 |
|
|
|
190 |
|
|
|
5 |
|
|
|
10 |
|
|
|
(1 |
) |
|
|
|
|
|
|
284 |
|
|
|
180 |
|
|
|
13 |
|
|
|
20 |
|
|
|
32 |
|
|
|
36 |
|
|
|
329 |
|
|
|
236 |
|
Siemens Building Technologies (SBT) |
|
|
168 |
|
|
|
172 |
|
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
(2 |
) |
|
|
164 |
|
|
|
173 |
|
|
|
30 |
|
|
|
29 |
|
|
|
29 |
|
|
|
37 |
|
|
|
223 |
|
|
|
239 |
|
Osram |
|
|
248 |
|
|
|
248 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
246 |
|
|
|
246 |
|
|
|
12 |
|
|
|
15 |
|
|
|
102 |
|
|
|
108 |
|
|
|
360 |
|
|
|
369 |
|
Transportation Systems (TS) |
|
|
(131 |
) |
|
|
105 |
|
|
|
1 |
|
|
|
1 |
|
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(129 |
) |
|
|
108 |
|
|
|
1 |
|
|
|
2 |
|
|
|
35 |
|
|
|
25 |
|
|
|
(93 |
) |
|
|
135 |
|
Power Generation (PG) |
|
|
(86 |
) |
|
|
499 |
|
|
|
36 |
|
|
|
(1 |
) |
|
|
(5 |
) |
|
|
(3 |
) |
|
|
(117 |
) |
|
|
503 |
|
|
|
26 |
|
|
|
36 |
|
|
|
80 |
|
|
|
75 |
|
|
|
(11 |
) |
|
|
614 |
|
Power Transmission and Distribution (PTD) |
|
|
424 |
|
|
|
273 |
|
|
|
12 |
|
|
|
8 |
|
|
|
1 |
|
|
|
7 |
|
|
|
411 |
|
|
|
258 |
|
|
|
11 |
|
|
|
9 |
|
|
|
39 |
|
|
|
38 |
|
|
|
461 |
|
|
|
305 |
|
Medical Solutions (Med) |
|
|
673 |
|
|
|
636 |
|
|
|
15 |
|
|
|
42 |
|
|
|
9 |
|
|
|
17 |
|
|
|
649 |
|
|
|
577 |
|
|
|
135 |
|
|
|
105 |
|
|
|
164 |
|
|
|
100 |
|
|
|
948 |
|
|
|
782 |
|
Siemens IT Solutions and Services |
|
|
35 |
|
|
|
106 |
|
|
|
23 |
|
|
|
2 |
|
|
|
7 |
|
|
|
|
|
|
|
5 |
|
|
|
104 |
|
|
|
23 |
|
|
|
30 |
|
|
|
88 |
|
|
|
112 |
|
|
|
116 |
|
|
|
246 |
|
Strategic Equity Investments (SEI) |
|
|
40 |
|
|
|
151 |
|
|
|
40 |
|
|
|
151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operations |
|
|
(118 |
) |
|
|
(97 |
) |
|
|
1 |
|
|
|
4 |
|
|
|
1 |
|
|
|
(6 |
) |
|
|
(120 |
) |
|
|
(95 |
) |
|
|
17 |
|
|
|
24 |
|
|
|
102 |
|
|
|
86 |
|
|
|
(1 |
) |
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations Groups |
|
|
2,908 |
|
|
|
3,259 |
|
|
|
136 |
|
|
|
220 |
|
|
|
15 |
|
|
|
12 |
|
|
|
2,757 |
|
|
|
3,027 |
|
|
|
373 |
|
|
|
308 |
|
|
|
795 |
|
|
|
723 |
|
|
|
3,925 |
|
|
|
4,058 |
|
Reconciliation to financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate items, pensions and eliminations |
|
|
(792 |
) |
|
|
(820 |
) |
|
|
38 |
|
|
|
64 |
|
|
|
68 |
|
|
|
12 |
|
|
|
(898 |
) |
|
|
(896 |
) |
|
|
42 |
|
|
|
24 |
|
|
|
(18 |
) |
|
|
(34 |
) |
|
|
(874 |
) |
|
|
(906 |
) |
Other interest income/expense |
|
|
(195 |
) |
|
|
(229 |
) |
|
|
|
|
|
|
|
|
|
|
(195 |
) |
|
|
(229 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations |
|
|
1,921 |
|
|
|
2,210 |
|
|
|
174 |
|
|
|
284 |
|
|
|
(112 |
) |
|
|
(205 |
) |
|
|
1,859 |
|
|
|
2,131 |
|
|
|
415 |
|
|
|
332 |
|
|
|
777 |
|
|
|
689 |
|
|
|
3,051 |
|
|
|
3,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing and Real Estate Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens Financial Services
(SFS) |
|
|
178 |
|
|
|
220 |
|
|
|
35 |
|
|
|
33 |
|
|
|
113 |
|
|
|
178 |
|
|
|
30 |
|
|
|
9 |
|
|
|
2 |
|
|
|
2 |
|
|
|
139 |
|
|
|
125 |
|
|
|
171 |
|
|
|
136 |
|
Siemens Real Estate
(SRE) |
|
|
199 |
|
|
|
111 |
|
|
|
|
|
|
|
10 |
|
|
|
(26 |
) |
|
|
(52 |
) |
|
|
225 |
|
|
|
153 |
|
|
|
|
|
|
|
|
|
|
|
79 |
|
|
|
77 |
|
|
|
304 |
|
|
|
230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Financing and Real Estate |
|
|
377 |
|
|
|
331 |
|
|
|
35 |
|
|
|
43 |
|
|
|
87 |
|
|
|
126 |
|
|
|
255 |
|
|
|
162 |
|
|
|
2 |
|
|
|
2 |
|
|
|
218 |
|
|
|
202 |
|
|
|
475 |
|
|
|
366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations, reclassifications and
Corporate Treasury |
|
|
8 |
|
|
|
77 |
|
|
|
|
|
|
|
|
|
|
|
50 |
|
|
|
120 |
|
|
|
(42 |
) |
|
|
(43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(42 |
) |
|
|
(43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
2,306 |
|
|
|
2,618 |
|
|
|
209 |
|
|
|
327 |
|
|
|
25 |
|
|
|
41 |
|
|
|
2,072 |
|
|
|
2,250 |
|
|
|
417 |
|
|
|
334 |
|
|
|
995 |
|
|
|
891 |
|
|
|
3,484 |
|
|
|
3,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 73 and 52 in the first six months of fiscal 2008 and 2007, respectively. |
Liquidity, capital resources and capital requirements
Cash flow First six months of fiscal 2008 compared to first six months of fiscal 2007
The following discussion presents an analysis of Siemens cash flows for the first six months
of fiscal 2008 and 2007. The first table below presents cash flows for both continuing and
discontinued operations. The latter category includes SV, which was sold to Continental AG between
the periods under review, as well as the former Com activities, particularly the enterprise
networks business, which is held for sale, and the carrier-related business which was transferred
into NSN. For further information on discontinued operations, see Notes to Interim Consolidated
Financial Statements. The second table below focuses on continuing operations.
Both tables conclude with a performance measure, Free cash flow, which is defined as Net cash
provided by (used in) operating activities less cash used for Additions to intangible assets and
property, plant and equipment. We believe this measure is helpful to our investors as an indicator
of our ability to generate cash from operations and to pay for discretionary and non-discretionary
expenditures not included in the measure, such as dividends, debt
repayment or acquisitions. We also use Free cash flow to compare cash generation among the segments of our
business. For further information about this measure, refer to Notes to Interim Consolidated
Financial Statements Segment information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing and |
|
|
|
|
|
|
|
Continuing operations |
|
|
Discontinued operations |
|
|
discontinued operations |
|
|
|
|
|
|
|
Six months ended March 31, |
|
( in millions) |
|
|
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Net cash provided by (used in): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
A |
|
|
|
2,756 |
|
|
|
3,609 |
|
|
|
(583 |
) |
|
|
(1,192 |
) |
|
|
2,173 |
|
|
|
2,417 |
|
Investing activities |
|
|
|
|
|
|
(5,947 |
) |
|
|
(5,759 |
) |
|
|
10,853 |
|
|
|
(435 |
) |
|
|
4,906 |
|
|
|
(6,194 |
) |
Herein: Additions to
intangible assets and
property, plant and
equipment |
|
|
B |
|
|
|
(1,350 |
) |
|
|
(1,350 |
) |
|
|
(127 |
) |
|
|
(332 |
) |
|
|
(1,477 |
) |
|
|
(1,682 |
) |
Free cash flow* |
|
|
A+B |
|
|
|
1,406 |
|
|
|
2,259 |
|
|
|
(710 |
) |
|
|
(1,524 |
) |
|
|
696 |
|
|
|
735 |
|
|
|
|
* |
|
The closest comparable financial measure under IFRS is Net cash provided by (used in)
operating activities. Net cash provided by (used in) operating activities from continuing
operations as well as from continuing and discontinued operations is reported within the
Consolidated Statements of Cash Flow for Siemens as a whole as well as for the components of
Siemens (see table below). Refer to Notes to Interim Consolidated Financial Statements for
information on the reconciliation of cash flow used for Additions to intangible assets and
property, plant and equipment as reported in this table and the table below with the line
item Additions to intangible assets and property, plant and equipment as reported within the
Consolidated Statements of Cash Flow. Other companies that report Free cash flow may define
and calculate it differently. |
Operating activities provided net cash of 2.173 billion in the first six months, compared to
net cash provided of 2.417 billion in the same period of the prior-year. These results include
both continuing operations and discontinued operations. Within the total, continuing operations
provided net cash of 2.756 billion compared to 3.609 billion a year earlier. Discontinued
operations improved to net cash used of 583 million in the current period, compared to net cash
used of 1.192 billion in the prior period which included a substantially higher build up of net
working capital, particularly receivables. The current period includes a 201 million payment for a
previously disclosed fine imposed by the Munich district court, which is related to the
investigation of former Com activities by the Munich Office of Public Prosecution.
Investing activities in continuing operations and discontinued operations provided net cash of
4.906 billion in the first six months of fiscal 2008 compared to net cash used of 6.194 billion
in the prior-year period. Within the total, continuing operations in the first half used net cash
of 5.947 billion compared to net cash used of 5.759 billion a year earlier. Discontinued
operations provided 10.853 billion in net cash during the current period, due primarily to
proceeds of approximately 11.4 billion from the sale of SV.
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SFS, SRE and |
|
|
|
|
Continuing operations |
|
|
|
|
|
Operations |
|
|
Corporate Treasury* |
|
|
Siemens |
|
|
|
|
|
|
|
Six months ended March 31, |
|
( in millions) |
|
|
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Net cash provided by (used in): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
A |
|
|
|
1,503 |
|
|
|
1,901 |
|
|
|
1,253 |
|
|
|
1,708 |
|
|
|
2,756 |
|
|
|
3,609 |
|
Investing activities |
|
|
|
|
|
|
(5,209 |
) |
|
|
(5,313 |
) |
|
|
(738 |
) |
|
|
(446 |
) |
|
|
(5,947 |
) |
|
|
(5,759 |
) |
Herein: Additions to
intangible assets and
property, plant and
equipment |
|
|
B |
|
|
|
(983 |
) |
|
|
(1,067 |
) |
|
|
(367 |
) |
|
|
(283 |
) |
|
|
(1,350 |
) |
|
|
(1,350 |
) |
Free cash flow |
|
|
A+B |
|
|
|
520 |
|
|
|
834 |
|
|
|
886 |
|
|
|
1,425 |
|
|
|
1,406 |
|
|
|
2,259 |
|
|
|
|
* |
|
Also includes eliminations and reclassifications. |
Within Operations, net cash provided by operating activities from continuing operations
decreased to 1.503 billion in the first six months of fiscal 2008 compared to net cash provided of
1.901 billion in the same period a year earlier. The decrease was driven by lower income from
continuing operations as well as by increased cash outflows related to net working capital. PG and
Med were impacted by a higher increase in net inventories year-over-year, while PG benefited from
substantially higher billings in excess of costs compared to the prior-year period. Within
Corporate Treasury and Financing and Real Estate, operating activities from continuing operations
provided net cash of 1.253 billion in the first six months, compared to net cash provided of
1.708 billion in the same period a year earlier. The current period includes positive effects
related to foreign currency derivatives, whereas the prior period benefited from the reduction of
accounts receivable related to the transfer of carrier activities into NSN. For Siemens overall,
net cash provided by operating activities from continuing operations amounted to 2.756 billion in
the first six months of fiscal 2008, compared to 3.609 billion in the prior-year period.
Net cash used in investing activities in continuing operations was 5.209 billion within
Operations in the first six months of fiscal 2008 largely unchanged from the prior-year level of
5.313 billion. Cash outflows in the current period primarily related to the acquisition of Dade
Behring at Med for approximately 4.4 billion (net of 69 million cash acquired), while the
prior-year period included 4.2 billion related to the acquisition of Bayers diagnostic business
at Med as well as a payment to acquire AG Kühnle, Kopp & Kausch at PG. Corporate Treasury and
Financing and Real Estate used net cash in investing activities in continuing operations of 738
million in the current period compared to 446 million cash used in the prior-year period. Siemens
as a whole used net cash in investing activities in continuing operations of 5.947 billion in the
first six months of fiscal 2008 compared to net cash used of 5.759 billion in the same period a
year earlier.
Free cash flow from continuing operations for Siemens amounted to 1.406 billion in the first
six months, compared to 2.259 billion in the same period a year earlier. The change
year-over-year is due to the decrease in net cash provided by operating activities within
Operations and Corporate Treasury and Financing and Real Estate activities as discussed above. Cash
used for additions to intangible assets and property, plant and equipment remained stable
year-over-year. The cash conversion rate for continuing operations, calculated as Free cash flow
from continuing operations divided by income from continuing operations, was 0.86 for the first
half of fiscal 2008.
Financing activities from continuing and discontinued operations used net cash of 6.005
billion compared to net cash provided of 415 million in the first six months a year earlier. The
current period includes substantially higher cash used for the purchase of common stock, at 1.998
billion compared to 101 million a year earlier. Within the current total is approximately 1.6
billion related to the share buyback tranche launched in January. In addition, the Company incurred
cash outflows of approximately 0.4 billion during the first half of April 2008 to complete the
first tranche. Short-term debt was reduced by 1.571 billion in the current period, mainly due to
repayment of commercial paper and medium-term notes as well as repayment of debt originally raised
by Dade Behring in the amount of 0.4 billion. In the first half a year earlier, the issuance of
commercial paper programs contributed to a net increase in short-term debt of 3.116 billion.
Dividends paid to shareholders (for fiscal 2007) in the current six months amounted to 1.462
billion, compared 1.292 billion (paid for fiscal 2006) in the prior-year period.
Capital resources and requirements
Our capital resources consist of a variety of short- and long-term financial instruments
including loans from financial institutions, commercial paper, medium-term notes and bonds. In
addition, other capital resources consist of liquid resources such as cash and cash equivalents,
future cash flows from operating activities and current available-for-sale financial assets.
19
Total liquidity refers to the liquid financial assets we had available at the respective
balance sheet date to fund our business operations and pay for near term obligations. Total
liquidity comprises cash and cash equivalents and available-for-sale financial assets. Net
liquidity results from total liquidity less total debt. Total debt as stated on the Consolidated
Balance Sheets relates to our commercial paper, medium-term notes, bonds, loans from banks and
other financial indebtedness such as obligations under finance leases. We use the net liquidity
measure for internal corporate finance management, as well as for external communication with
investors, analysts and rating agencies. Net liquidity should not be interpreted as signifying
that the relevant amount is entirely free for discretionary application.
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
September 30, |
|
( in millions) |
|
2008 |
|
|
2007 |
|
Cash and cash equivalents |
|
|
5,614 |
|
|
|
4,005 |
|
Current available-for-sale financial assets |
|
|
163 |
|
|
|
193 |
|
Total liquidity |
|
|
5,777 |
|
|
|
4,198 |
|
Short-term debt and current maturities of long-term debt |
|
|
3,560 |
|
|
|
5,637 |
|
Long-term debt |
|
|
9,420 |
|
|
|
9,860 |
|
Total debt |
|
|
12,980 |
|
|
|
15,497 |
|
|
|
|
|
|
|
|
Net liquidity |
|
|
(7,203 |
) |
|
|
(11,299 |
) |
Net liquidity increased from a negative 11.299 billion as of September 30, 2007 to a negative
7.203 billion as of March 31, 2008. For further information please see the discussion of cash
flows above.
Our capital requirements include scheduled debt service, regular capital spending, ongoing
cash requirements from operating activities and capital requirements for our share buyback program
(for further information please refer to Cash flow First six months of fiscal 2008 compared to
first six months of fiscal 2007).
Pension plan funding
At the end of the first six months of fiscal 2008, the combined funding status of Siemens
principal pension plans was balanced, compared to an underfunding of 1.0 billion at the end of
fiscal 2007. The improvement in funding status is due primarily to a significant increase in the
discount rate assumption at March 31, 2008, which reduced Siemens estimated defined benefit
obligation (DBO). Contributions and the disposal of Siemens VDO pension liabilities also had a
positive influence. Taken together, these factors more than offset the negative effect of service
and interest cost on the defined benefit obligation and a negative actual return on plan assets.
While fixed-income investments yielded positive results in the first six months, a negative
performance in equity investments resulted in an actual return on plan assets of a loss of 943
million. This represents a negative 8.2% return on an annualized basis, compared to the expected
annual return of 6.5%.
The fair value of plan assets of Siemens principal funded pension plans as of March 31, 2008,
was 22.0 billion, compared to 24.0 billion as of September 30, 2007. In the first six months of
fiscal 2008, employer contributions amounted to 450 million compared to 517 million in the first
six months of the prior period. Beside the negative actual return on plan assets, the decrease in
plan assets was due to benefits paid during the six-month period, currency translation effects and
the disposal of Siemens VDO pension assets.
The DBO for Siemens principal pension plans amounted to 22.0 billion as of March 31, 2008,
approximately 3.0 billion lower than the DBO of 25.0 billion as of September 30, 2007. The
difference is due to a significant increase in the discount rate assumption at March 31, 2008,
currency translation effects and the disposal of Siemens VDO pension liabilities. Altogether these
factors strongly outweighed the negative effect of service and interest cost less benefits paid
during the first six months of the current period.
For more information on Siemens pension plans, see Notes to Interim Consolidated Financial
Statements.
Risk management
Within the scope of its entrepreneurial activities and the variety of its operations, Siemens
is exposed to numerous risks which could negatively affect business development. For the early
recognition and successful
20
management of relevant risks we employ a number of coordinated risk management and control
systems. Risk management facilitates the sustainable protection of our future corporate success as
an integral part of all decisions and business processes of the Company.
In Siemens Annual Report for fiscal 2007 we described the risks which could have a material
adverse effect on our financial condition or results of operations and also the design of our risk
management system.
For significant developments regarding project risks, risk related to portfolio activities and
legal, compliance and regulatory developments, please refer to the sections entitled Segment
information analysis, Legal proceedings and Outlook within this Interim Report.
During the first six months of fiscal 2008 we identified no further significant risks besides
those presented in the Annual Report for fiscal 2007 and the sections entitled Segment information
analysis, Legal proceedings and Outlook within this Interim Report. Additional risks not known
to us or that we currently consider immaterial could also impair our business operations. We do not
expect to incur any risks that alone or in combination would appear to jeopardize the continuity of
the Companys business.
For information concerning forward-looking statements and additional information, please also
refer to Outlook and the Disclaimer at the end of the Interim group management report.
Legal Proceedings
For information on legal proceedings, see Notes to Interim Consolidated Financial
Statements.
outlook
Siemens expects organic revenue to grow at twice the rate of GDP growth in fiscal 2008 and
that full-year Group profit from Operations and income from continuing operations will match the
levels achieved in fiscal 2007. This outlook excludes earnings impacts that may arise from legal
and regulatory matters, which are not yet quantifiable, and from measures that may be taken as part
of Siemens transformation programs, including SG&A reduction. Within discontinued operations,
divestment of the enterprise networks business is expected to result in a substantial loss.
Our business, financial condition or results of operation could suffer material adverse
effects as a result of certain other risks. For an overview of the Companys risk factors as well
as its opportunities see Risk management in this Interim
group management report and in our Annual Report for fiscal 2007.
21
EBITDA (adjusted), Return on capital employed (ROCE), Free cash flow and Cash conversion rate
are non-GAAP financial measures. Information for 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.
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,
project 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 our operations, performance, business
strategy and results and could cause the actual results, performance or achievements of Siemens to
be materially different from any future results, performance or achievements that may be expressed
or implied by such forward-looking statements. 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; changes in business strategy; the
outcome of pending investigations and legal proceedings, especially the corruption investigations
we are currently subject to in Germany, the United States and elsewhere; the potential impact of
such investigations and proceedings on our ongoing business including our relationships with
governments and other customers; the potential impact of such matters on our financial statements;
as well as various other factors. More detailed information about certain of these factors is
contained throughout this report and in our other 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.
22
SIEMENS
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the three months ended March 31, 2008 and 2007
(in millions of , per share amounts in )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
reclassifications and |
|
|
|
|
|
|
|
|
|
|
Financing and Real |
|
|
|
Siemens |
|
|
Corporate Treasury |
|
|
Operations |
|
|
Estate |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Revenue |
|
|
18,094 |
|
|
|
18,001 |
|
|
|
(391 |
) |
|
|
(370 |
) |
|
|
17,886 |
|
|
|
17,784 |
|
|
|
599 |
|
|
|
587 |
|
Cost of goods sold and services rendered |
|
|
(13,178 |
) |
|
|
(12,738 |
) |
|
|
391 |
|
|
|
370 |
|
|
|
(13,059 |
) |
|
|
(12,646 |
) |
|
|
(510 |
) |
|
|
(462 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
4,916 |
|
|
|
5,263 |
|
|
|
|
|
|
|
|
|
|
|
4,827 |
|
|
|
5,138 |
|
|
|
89 |
|
|
|
125 |
|
Research and development expenses |
|
|
(918 |
) |
|
|
(814 |
) |
|
|
|
|
|
|
|
|
|
|
(918 |
) |
|
|
(814 |
) |
|
|
|
|
|
|
|
|
Marketing, selling and general administrative expenses |
|
|
(3,243 |
) |
|
|
(2,926 |
) |
|
|
|
|
|
|
|
|
|
|
(3,178 |
) |
|
|
(2,833 |
) |
|
|
(65 |
) |
|
|
(93 |
) |
Other operating income |
|
|
187 |
|
|
|
105 |
|
|
|
(22 |
) |
|
|
(17 |
) |
|
|
139 |
|
|
|
78 |
|
|
|
70 |
|
|
|
44 |
|
Other operating expense |
|
|
(257 |
) |
|
|
(161 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(251 |
) |
|
|
(154 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
Income from investments accounted for using the equity method, net |
|
|
101 |
|
|
|
184 |
|
|
|
|
|
|
|
|
|
|
|
84 |
|
|
|
158 |
|
|
|
17 |
|
|
|
26 |
|
Financial income (expense), net |
|
|
3 |
|
|
|
30 |
|
|
|
21 |
|
|
|
50 |
|
|
|
(73 |
) |
|
|
(102 |
) |
|
|
55 |
|
|
|
82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes |
|
|
789 |
|
|
|
1,681 |
|
|
|
(2 |
) |
|
|
31 |
|
|
|
630 |
|
|
|
1,471 |
|
|
|
161 |
|
|
|
179 |
|
Income taxes (1) |
|
|
(224 |
) |
|
|
(395 |
) |
|
|
1 |
|
|
|
(7 |
) |
|
|
(180 |
) |
|
|
(344 |
) |
|
|
(45 |
) |
|
|
(44 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
|
565 |
|
|
|
1,286 |
|
|
|
(1 |
) |
|
|
24 |
|
|
|
450 |
|
|
|
1,127 |
|
|
|
116 |
|
|
|
135 |
|
Loss from discontinued operations, net of income taxes |
|
|
(153 |
) |
|
|
(27 |
) |
|
|
|
|
|
|
|
|
|
|
(153 |
) |
|
|
(27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
412 |
|
|
|
1,259 |
|
|
|
(1 |
) |
|
|
24 |
|
|
|
297 |
|
|
|
1,100 |
|
|
|
116 |
|
|
|
135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
28 |
|
|
|
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of Siemens AG |
|
|
384 |
|
|
|
1,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
0.59 |
|
|
|
1.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations |
|
|
(0.17 |
) |
|
|
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
0.42 |
|
|
|
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
0.59 |
|
|
|
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations |
|
|
(0.17 |
) |
|
|
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
0.42 |
|
|
|
1.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE RECOGNIZED IN EQUITY (unaudited)
For the three months ended March 31, 2008 and 2007
(in millions of ) |
|
|
|
Siemens |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
412 |
|
|
|
1,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation differences |
|
|
(545 |
) |
|
|
(94 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets |
|
|
(82 |
) |
|
|
(44 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains and losses on pension plans and similar commitments |
|
|
168 |
|
|
|
116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation effect related to step acquisitions |
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income and expense recognized directly in
equity, net of tax
(2) (3) |
|
|
(319 |
) |
|
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income and expense recognized in equity |
|
|
93 |
|
|
|
1,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
1 |
|
|
|
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of Siemens AG |
|
|
92 |
|
|
|
1,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 102 and (35) in 2008 and 2007, respectively, resulting from investments
accounted for using the equity method. |
|
(3) |
|
Includes minority interest of (27) and (3) in 2008 and 2007, respectively, relating
to currency translation differences. |
The accompanying Notes are an integral part of these Interim Consolidated Financial
Statements.
23
SIEMENS
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the six months ended March 31, 2008 and 2007
(in millions of , per share amounts in )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
reclassifications and |
|
|
|
|
|
|
|
|
|
|
Financing and Real |
|
|
|
Siemens |
|
|
Corporate Treasury |
|
|
Operations |
|
|
Estate |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Revenue |
|
|
36,494 |
|
|
|
34,730 |
|
|
|
(756 |
) |
|
|
(738 |
) |
|
|
36,079 |
|
|
|
34,286 |
|
|
|
1,171 |
|
|
|
1,182 |
|
Cost of goods sold and services rendered |
|
|
(26,273 |
) |
|
|
(25,002 |
) |
|
|
756 |
|
|
|
738 |
|
|
|
(26,065 |
) |
|
|
(24,795 |
) |
|
|
(964 |
) |
|
|
(945 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
10,221 |
|
|
|
9,728 |
|
|
|
|
|
|
|
|
|
|
|
10,014 |
|
|
|
9,491 |
|
|
|
207 |
|
|
|
237 |
|
Research and development expenses |
|
|
(1,765 |
) |
|
|
(1,539 |
) |
|
|
|
|
|
|
|
|
|
|
(1,765 |
) |
|
|
(1,539 |
) |
|
|
|
|
|
|
|
|
Marketing, selling and general administrative expenses |
|
|
(6,298 |
) |
|
|
(5,598 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(6,152 |
) |
|
|
(5,412 |
) |
|
|
(145 |
) |
|
|
(185 |
) |
Other operating income |
|
|
377 |
|
|
|
318 |
|
|
|
(40 |
) |
|
|
(40 |
) |
|
|
215 |
|
|
|
237 |
|
|
|
202 |
|
|
|
121 |
|
Other operating expense |
|
|
(463 |
) |
|
|
(659 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(453 |
) |
|
|
(646 |
) |
|
|
(9 |
) |
|
|
(11 |
) |
Income from investments accounted for using the equity method, net |
|
|
209 |
|
|
|
327 |
|
|
|
|
|
|
|
|
|
|
|
174 |
|
|
|
284 |
|
|
|
35 |
|
|
|
43 |
|
Financial income (expense), net |
|
|
25 |
|
|
|
41 |
|
|
|
50 |
|
|
|
120 |
|
|
|
(112 |
) |
|
|
(205 |
) |
|
|
87 |
|
|
|
126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes |
|
|
2,306 |
|
|
|
2,618 |
|
|
|
8 |
|
|
|
77 |
|
|
|
1,921 |
|
|
|
2,210 |
|
|
|
377 |
|
|
|
331 |
|
Income taxes (1) |
|
|
(663 |
) |
|
|
(711 |
) |
|
|
(2 |
) |
|
|
(21 |
) |
|
|
(553 |
) |
|
|
(600 |
) |
|
|
(108 |
) |
|
|
(90 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
1,643 |
|
|
|
1,907 |
|
|
|
6 |
|
|
|
56 |
|
|
|
1,368 |
|
|
|
1,610 |
|
|
|
269 |
|
|
|
241 |
|
Income from discontinued operations, net of income taxes |
|
|
5,244 |
|
|
|
140 |
|
|
|
|
|
|
|
|
|
|
|
5,243 |
|
|
|
140 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
6,887 |
|
|
|
2,047 |
|
|
|
6 |
|
|
|
56 |
|
|
|
6,611 |
|
|
|
1,750 |
|
|
|
270 |
|
|
|
241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
71 |
|
|
|
112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of Siemens AG |
|
|
6,816 |
|
|
|
1,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
1.73 |
|
|
|
2.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations |
|
|
5.76 |
|
|
|
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
7.49 |
|
|
|
2.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
1.72 |
|
|
|
1.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations |
|
|
5.74 |
|
|
|
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
7.46 |
|
|
|
2.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE RECOGNIZED IN EQUITY (unaudited)
For the six months ended March 31, 2008 and 2007
(in millions of ) |
|
|
|
Siemens |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
6,887 |
|
|
|
2,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation differences |
|
|
(812 |
) |
|
|
(261 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets |
|
|
(72 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
184 |
|
|
|
53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains and losses on pension plans and similar commitments |
|
|
187 |
|
|
|
625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation effect related to step acquisitions |
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income and expense recognized directly in
equity, net of tax
(2) (3) |
|
|
(513 |
) |
|
|
418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income and expense recognized in equity |
|
|
6,374 |
|
|
|
2,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
41 |
|
|
|
97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of Siemens AG |
|
|
6,333 |
|
|
|
2,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 127 and (30) in 2008 and 2007, respectively, resulting from investments accounted
for using the equity method. |
|
(3) |
|
Includes minority interest of (30) and (15) in 2008 and 2007, respectively, relating to
currency translation differences. |
The accompanying Notes are an integral part of these Interim Consolidated Financial
Statements.
24
SIEMENS
CONSOLIDATED BALANCE SHEETS (unaudited)
As of March 31, 2008 and September 30, 2007
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
reclassifications and |
|
|
|
|
|
|
|
|
|
|
Financing and Real |
|
|
|
Siemens |
|
|
Corporate Treasury |
|
|
Operations |
|
|
Estate |
|
|
|
3/31/08 |
|
|
9/30/07 |
|
|
3/31/08 |
|
|
9/30/07 |
|
|
3/31/08 |
|
|
9/30/07 |
|
|
3/31/08 |
|
|
9/30/07 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
5,614 |
|
|
|
4,005 |
|
|
|
4,603 |
|
|
|
2,740 |
|
|
|
975 |
|
|
|
1,195 |
|
|
|
36 |
|
|
|
70 |
|
Available-for-sale financial assets |
|
|
163 |
|
|
|
193 |
|
|
|
|
|
|
|
|
|
|
|
134 |
|
|
|
162 |
|
|
|
29 |
|
|
|
31 |
|
Trade and other receivables |
|
|
14,465 |
|
|
|
14,620 |
|
|
|
1 |
|
|
|
|
|
|
|
12,820 |
|
|
|
12,589 |
|
|
|
1,644 |
|
|
|
2,031 |
|
Other current financial assets |
|
|
3,587 |
|
|
|
2,932 |
|
|
|
577 |
|
|
|
366 |
|
|
|
1,868 |
|
|
|
1,427 |
|
|
|
1,142 |
|
|
|
1,139 |
|
Intragroup receivables |
|
|
|
|
|
|
|
|
|
|
(21,200 |
) |
|
|
(10,401 |
) |
|
|
21,154 |
|
|
|
10,355 |
|
|
|
46 |
|
|
|
46 |
|
Inventories |
|
|
13,740 |
|
|
|
12,930 |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
|
13,640 |
|
|
|
12,850 |
|
|
|
102 |
|
|
|
82 |
|
Income tax receivables |
|
|
490 |
|
|
|
398 |
|
|
|
3 |
|
|
|
1 |
|
|
|
479 |
|
|
|
352 |
|
|
|
8 |
|
|
|
45 |
|
Other current assets |
|
|
1,451 |
|
|
|
1,322 |
|
|
|
|
|
|
|
|
|
|
|
1,317 |
|
|
|
1,183 |
|
|
|
134 |
|
|
|
139 |
|
Assets classified as held for disposal |
|
|
2,064 |
|
|
|
11,532 |
|
|
|
(16 |
) |
|
|
(345 |
) |
|
|
2,000 |
|
|
|
11,843 |
|
|
|
80 |
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
41,574 |
|
|
|
47,932 |
|
|
|
(16,034 |
) |
|
|
(7,641 |
) |
|
|
54,387 |
|
|
|
51,956 |
|
|
|
3,221 |
|
|
|
3,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
14,750 |
|
|
|
12,501 |
|
|
|
|
|
|
|
|
|
|
|
14,639 |
|
|
|
12,375 |
|
|
|
111 |
|
|
|
126 |
|
Other intangible assets |
|
|
5,243 |
|
|
|
4,619 |
|
|
|
|
|
|
|
|
|
|
|
5,229 |
|
|
|
4,605 |
|
|
|
14 |
|
|
|
14 |
|
Property, plant and equipment |
|
|
10,471 |
|
|
|
10,555 |
|
|
|
|
|
|
|
|
|
|
|
6,953 |
|
|
|
6,896 |
|
|
|
3,518 |
|
|
|
3,659 |
|
Investments accounted for using the equity method |
|
|
7,211 |
|
|
|
7,016 |
|
|
|
|
|
|
|
|
|
|
|
6,984 |
|
|
|
6,791 |
|
|
|
227 |
|
|
|
225 |
|
Other financial assets |
|
|
6,148 |
|
|
|
5,561 |
|
|
|
794 |
|
|
|
454 |
|
|
|
1,198 |
|
|
|
1,353 |
|
|
|
4,156 |
|
|
|
3,754 |
|
Intragroup receivables |
|
|
|
|
|
|
|
|
|
|
(269 |
) |
|
|
(479 |
) |
|
|
269 |
|
|
|
479 |
|
|
|
|
|
|
|
|
|
Deferred tax assets |
|
|
1,921 |
|
|
|
2,594 |
|
|
|
(211 |
) |
|
|
17 |
|
|
|
2,047 |
|
|
|
2,488 |
|
|
|
85 |
|
|
|
89 |
|
Other assets |
|
|
1,243 |
|
|
|
777 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1,182 |
|
|
|
715 |
|
|
|
60 |
|
|
|
61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
88,561 |
|
|
|
91,555 |
|
|
|
(15,719 |
) |
|
|
(7,648 |
) |
|
|
92,888 |
|
|
|
87,658 |
|
|
|
11,392 |
|
|
|
11,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current maturities of long-term debt |
|
|
3,560 |
|
|
|
5,637 |
|
|
|
2,968 |
|
|
|
5,095 |
|
|
|
374 |
|
|
|
362 |
|
|
|
218 |
|
|
|
180 |
|
Trade payables |
|
|
7,688 |
|
|
|
8,382 |
|
|
|
2 |
|
|
|
13 |
|
|
|
7,376 |
|
|
|
7,951 |
|
|
|
310 |
|
|
|
418 |
|
Other current financial liabilities |
|
|
2,497 |
|
|
|
2,553 |
|
|
|
845 |
|
|
|
754 |
|
|
|
1,537 |
|
|
|
1,712 |
|
|
|
115 |
|
|
|
87 |
|
Intragroup liabilities |
|
|
|
|
|
|
|
|
|
|
(24,988 |
) |
|
|
(15,170 |
) |
|
|
20,070 |
|
|
|
10,551 |
|
|
|
4,918 |
|
|
|
4,619 |
|
Current provisions |
|
|
3,658 |
|
|
|
3,581 |
|
|
|
|
|
|
|
|
|
|
|
3,618 |
|
|
|
3,521 |
|
|
|
40 |
|
|
|
60 |
|
Income tax payables |
|
|
1,757 |
|
|
|
2,141 |
|
|
|
8 |
|
|
|
19 |
|
|
|
1,711 |
|
|
|
2,069 |
|
|
|
38 |
|
|
|
53 |
|
Other current liabilities |
|
|
17,813 |
|
|
|
17,058 |
|
|
|
172 |
|
|
|
166 |
|
|
|
17,411 |
|
|
|
16,663 |
|
|
|
230 |
|
|
|
229 |
|
Liabilities associated with assets classified as held for disposal |
|
|
1,612 |
|
|
|
4,542 |
|
|
|
(22 |
) |
|
|
(4,211 |
) |
|
|
1,634 |
|
|
|
8,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
38,585 |
|
|
|
43,894 |
|
|
|
(21,015 |
) |
|
|
(13,334 |
) |
|
|
53,731 |
|
|
|
51,582 |
|
|
|
5,869 |
|
|
|
5,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
9,420 |
|
|
|
9,860 |
|
|
|
8,585 |
|
|
|
8,901 |
|
|
|
579 |
|
|
|
548 |
|
|
|
256 |
|
|
|
411 |
|
Pension plans and similar commitments |
|
|
2,325 |
|
|
|
2,780 |
|
|
|
|
|
|
|
|
|
|
|
2,325 |
|
|
|
2,779 |
|
|
|
|
|
|
|
1 |
|
Deferred tax liabilities |
|
|
633 |
|
|
|
580 |
|
|
|
(493 |
) |
|
|
(379 |
) |
|
|
704 |
|
|
|
561 |
|
|
|
422 |
|
|
|
398 |
|
Provisions |
|
|
2,418 |
|
|
|
2,103 |
|
|
|
|
|
|
|
|
|
|
|
2,308 |
|
|
|
1,983 |
|
|
|
110 |
|
|
|
120 |
|
Other financial liabilities |
|
|
277 |
|
|
|
411 |
|
|
|
19 |
|
|
|
120 |
|
|
|
201 |
|
|
|
246 |
|
|
|
57 |
|
|
|
45 |
|
Other liabilities |
|
|
2,188 |
|
|
|
2,300 |
|
|
|
|
|
|
|
9 |
|
|
|
2,108 |
|
|
|
2,214 |
|
|
|
80 |
|
|
|
77 |
|
Intragroup liabilities |
|
|
|
|
|
|
|
|
|
|
(2,815 |
) |
|
|
(2,965 |
) |
|
|
|
|
|
|
79 |
|
|
|
2,815 |
|
|
|
2,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
55,846 |
|
|
|
61,928 |
|
|
|
(15,719 |
) |
|
|
(7,648 |
) |
|
|
61,956 |
|
|
|
59,992 |
|
|
|
9,609 |
|
|
|
9,584 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, no par value (1) |
|
|
2,743 |
|
|
|
2,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital |
|
|
6,040 |
|
|
|
6,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings |
|
|
25,983 |
|
|
|
20,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other components of equity |
|
|
(950 |
) |
|
|
(280 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Treasury shares, at cost (2) |
|
|
(1,655 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity attributable to shareholders of Siemens AG |
|
|
32,161 |
|
|
|
28,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
554 |
|
|
|
631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
32,715 |
|
|
|
29,627 |
|
|
|
|
|
|
|
|
|
|
|
30,932 |
|
|
|
27,666 |
|
|
|
1,783 |
|
|
|
1,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
88,561 |
|
|
|
91,555 |
|
|
|
(15,719 |
) |
|
|
(7,648 |
) |
|
|
92,888 |
|
|
|
87,658 |
|
|
|
11,392 |
|
|
|
11,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Authorized: 1,137,913,421 and 1,137,913,421 shares, respectively. |
|
|
|
Issued: 914,203,421 and 914,203,421 shares, respectively. |
|
(2) |
|
19,825,771 and 383 shares, respectively. |
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
25
SIEMENS
CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited)
For the six months ended March 31, 2008 and 2007
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
reclassifications and |
|
|
|
|
|
|
|
|
|
|
Financing and Real |
|
|
|
Siemens |
|
|
Corporate Treasury |
|
|
Operations |
|
|
Estate |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
6,887 |
|
|
|
2,047 |
|
|
|
6 |
|
|
|
56 |
|
|
|
6,611 |
|
|
|
1,750 |
|
|
|
270 |
|
|
|
241 |
|
Adjustments to reconcile net income to cash provided |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization, depreciation and impairments |
|
|
1,467 |
|
|
|
1,620 |
|
|
|
|
|
|
|
|
|
|
|
1,245 |
|
|
|
1,415 |
|
|
|
222 |
|
|
|
205 |
|
Income taxes |
|
|
604 |
|
|
|
754 |
|
|
|
2 |
|
|
|
21 |
|
|
|
494 |
|
|
|
643 |
|
|
|
108 |
|
|
|
90 |
|
Interest (income) expense, net |
|
|
13 |
|
|
|
52 |
|
|
|
(113 |
) |
|
|
(160 |
) |
|
|
186 |
|
|
|
274 |
|
|
|
(60 |
) |
|
|
(62 |
) |
(Gains) on sales and disposals of businesses, intangibles and property, plant and equipment, net |
|
|
(5,743 |
) |
|
|
(188 |
) |
|
|
|
|
|
|
|
|
|
|
(5,592 |
) |
|
|
(116 |
) |
|
|
(151 |
) |
|
|
(72 |
) |
(Gains) on sales of investments, net (1) |
|
|
(15 |
) |
|
|
(69 |
) |
|
|
|
|
|
|
|
|
|
|
(14 |
) |
|
|
(37 |
) |
|
|
(1 |
) |
|
|
(32 |
) |
(Gains) losses on sales and impairments of current available-for-sale financial assets, net |
|
|
(2 |
) |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
|
5 |
|
|
|
|
|
|
|
|
|
(Income) from investments (1) |
|
|
(252 |
) |
|
|
(385 |
) |
|
|
|
|
|
|
|
|
|
|
(184 |
) |
|
|
(306 |
) |
|
|
(68 |
) |
|
|
(79 |
) |
Other non-cash (income) expenses |
|
|
558 |
|
|
|
51 |
|
|
|
719 |
|
|
|
12 |
|
|
|
(148 |
) |
|
|
51 |
|
|
|
(13 |
) |
|
|
(12 |
) |
Change in current assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in inventories |
|
|
(1,281 |
) |
|
|
(1,045 |
) |
|
|
|
|
|
|
|
|
|
|
(1,259 |
) |
|
|
(1,002 |
) |
|
|
(22 |
) |
|
|
(43 |
) |
(Increase) decrease in trade and other receivables |
|
|
8 |
|
|
|
(352 |
) |
|
|
407 |
|
|
|
1,190 |
|
|
|
(400 |
) |
|
|
(1,532 |
) |
|
|
1 |
|
|
|
(10 |
) |
(Increase) decrease in other current assets |
|
|
(700 |
) |
|
|
(19 |
) |
|
|
(321 |
) |
|
|
44 |
|
|
|
(410 |
) |
|
|
(126 |
) |
|
|
31 |
|
|
|
63 |
|
Increase (decrease) in trade payables |
|
|
(400 |
) |
|
|
(79 |
) |
|
|
(23 |
) |
|
|
(40 |
) |
|
|
(391 |
) |
|
|
(38 |
) |
|
|
14 |
|
|
|
(1 |
) |
Increase (decrease) in current provisions |
|
|
416 |
|
|
|
(366 |
) |
|
|
|
|
|
|
|
|
|
|
451 |
|
|
|
(343 |
) |
|
|
(35 |
) |
|
|
(23 |
) |
Increase (decrease) in other current liabilities |
|
|
1,494 |
|
|
|
1,627 |
|
|
|
96 |
|
|
|
262 |
|
|
|
1,352 |
|
|
|
1,326 |
|
|
|
46 |
|
|
|
39 |
|
Change in other assets and liabilities |
|
|
(344 |
) |
|
|
(795 |
) |
|
|
(101 |
) |
|
|
(229 |
) |
|
|
(264 |
) |
|
|
(575 |
) |
|
|
21 |
|
|
|
9 |
|
Income taxes paid |
|
|
(989 |
) |
|
|
(932 |
) |
|
|
(3 |
) |
|
|
(25 |
) |
|
|
(839 |
) |
|
|
(801 |
) |
|
|
(147 |
) |
|
|
(106 |
) |
Dividends received |
|
|
59 |
|
|
|
105 |
|
|
|
|
|
|
|
|
|
|
|
15 |
|
|
|
45 |
|
|
|
44 |
|
|
|
60 |
|
Interest received |
|
|
393 |
|
|
|
386 |
|
|
|
109 |
|
|
|
106 |
|
|
|
69 |
|
|
|
76 |
|
|
|
215 |
|
|
|
204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities continuing and discontinued operations |
|
|
2,173 |
|
|
|
2,417 |
|
|
|
778 |
|
|
|
1,237 |
|
|
|
920 |
|
|
|
709 |
|
|
|
475 |
|
|
|
471 |
|
Net cash provided by (used in) operating activities continuing operations |
|
|
2,756 |
|
|
|
3,609 |
|
|
|
778 |
|
|
|
1,237 |
|
|
|
1,503 |
|
|
|
1,901 |
|
|
|
475 |
|
|
|
471 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible assets and property, plant and equipment |
|
|
(1,477 |
) |
|
|
(1,682 |
) |
|
|
|
|
|
|
|
|
|
|
(1,110 |
) |
|
|
(1,399 |
) |
|
|
(367 |
) |
|
|
(283 |
) |
Acquisitions |
|
|
(4,528 |
) |
|
|
(4,551 |
) |
|
|
|
|
|
|
|
|
|
|
(4,528 |
) |
|
|
(4,551 |
) |
|
|
|
|
|
|
|
|
Purchases of investments (1) |
|
|
(109 |
) |
|
|
(127 |
) |
|
|
|
|
|
|
|
|
|
|
(89 |
) |
|
|
(123 |
) |
|
|
(20 |
) |
|
|
(4 |
) |
Purchases of current available-for-sale financial assets |
|
|
(8 |
) |
|
|
(17 |
) |
|
|
|
|
|
|
|
|
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(15 |
) |
(Increase) decrease in receivables from financing activities |
|
|
(594 |
) |
|
|
(340 |
) |
|
|
(383 |
) |
|
|
(1,204 |
) |
|
|
|
|
|
|
|
|
|
|
(211 |
) |
|
|
864 |
|
Proceeds from sales of investments, intangibles and property, plant and equipment (1) |
|
|
404 |
|
|
|
466 |
|
|
|
|
|
|
|
|
|
|
|
204 |
|
|
|
277 |
|
|
|
200 |
|
|
|
189 |
|
Proceeds from disposals of businesses |
|
|
11,188 |
|
|
|
32 |
|
|
|
|
|
|
|
|
|
|
|
11,146 |
|
|
|
32 |
|
|
|
42 |
|
|
|
|
|
Proceeds from sales of current available-for-sale financial assets |
|
|
30 |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
24 |
|
|
|
18 |
|
|
|
6 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities continuing and discontinued operations |
|
|
4,906 |
|
|
|
(6,194 |
) |
|
|
(383 |
) |
|
|
(1,204 |
) |
|
|
5,644 |
|
|
|
(5,748 |
) |
|
|
(355 |
) |
|
|
758 |
|
Net cash provided by (used in) investing activities continuing operations |
|
|
(5,947 |
) |
|
|
(5,759 |
) |
|
|
(383 |
) |
|
|
(1,204 |
) |
|
|
(5,209 |
) |
|
|
(5,313 |
) |
|
|
(355 |
) |
|
|
758 |
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock |
|
|
|
|
|
|
343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
343 |
|
|
|
|
|
|
|
|
|
Purchase of common stock |
|
|
(1,998 |
) |
|
|
(101 |
) |
|
|
|
|
|
|
|
|
|
|
(1,998 |
) |
|
|
(101 |
) |
|
|
|
|
|
|
|
|
Proceeds from re-issuance of treasury stock |
|
|
243 |
|
|
|
66 |
|
|
|
|
|
|
|
|
|
|
|
243 |
|
|
|
66 |
|
|
|
|
|
|
|
|
|
Repayment of long-term debt (including current maturities of long-term debt) |
|
|
(643 |
) |
|
|
(1,146 |
) |
|
|
(643 |
) |
|
|
(1,146 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in short-term debt |
|
|
(1,571 |
) |
|
|
3,116 |
|
|
|
(1,081 |
) |
|
|
3,008 |
|
|
|
(400 |
) |
|
|
142 |
|
|
|
(90 |
) |
|
|
(34 |
) |
Interest paid |
|
|
(499 |
) |
|
|
(469 |
) |
|
|
(425 |
) |
|
|
(379 |
) |
|
|
(46 |
) |
|
|
(61 |
) |
|
|
(28 |
) |
|
|
(29 |
) |
Dividends paid |
|
|
(1,462 |
) |
|
|
(1,292 |
) |
|
|
|
|
|
|
|
|
|
|
(1,462 |
) |
|
|
(1,292 |
) |
|
|
|
|
|
|
|
|
Dividends paid to minority shareholders |
|
|
(75 |
) |
|
|
(102 |
) |
|
|
|
|
|
|
|
|
|
|
(75 |
) |
|
|
(102 |
) |
|
|
|
|
|
|
|
|
Intragroup financing |
|
|
|
|
|
|
|
|
|
|
3,692 |
|
|
|
(5,708 |
) |
|
|
(3,658 |
) |
|
|
6,881 |
|
|
|
(34 |
) |
|
|
(1,173 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities continuing and discontinued operations |
|
|
(6,005 |
) |
|
|
415 |
|
|
|
1,543 |
|
|
|
(4,225 |
) |
|
|
(7,396 |
) |
|
|
5,876 |
|
|
|
(152 |
) |
|
|
(1,236 |
) |
Net cash provided by (used in) financing activities continuing operations |
|
|
4,949 |
|
|
|
(2,084 |
) |
|
|
1,543 |
|
|
|
(4,225 |
) |
|
|
3,558 |
|
|
|
3,377 |
|
|
|
(152 |
) |
|
|
(1,236 |
) |
Effect of exchange rates on cash and cash equivalents |
|
|
(149 |
) |
|
|
(6 |
) |
|
|
(75 |
) |
|
|
2 |
|
|
|
(72 |
) |
|
|
(8 |
) |
|
|
(2 |
) |
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
925 |
|
|
|
(3,368 |
) |
|
|
1,863 |
|
|
|
(4,190 |
) |
|
|
(904 |
) |
|
|
829 |
|
|
|
(34 |
) |
|
|
(7 |
) |
Cash and cash equivalents at beginning of period |
|
|
4,940 |
|
|
|
10,214 |
|
|
|
2,740 |
|
|
|
9,072 |
|
|
|
2,130 |
|
|
|
1,109 |
|
|
|
70 |
|
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
|
5,865 |
|
|
|
6,846 |
|
|
|
4,603 |
|
|
|
4,882 |
|
|
|
1,226 |
|
|
|
1,938 |
|
|
|
36 |
|
|
|
26 |
|
Less: Cash and cash equivalents of assets classified as held for disposal and discontinued operations at end of period |
|
|
251 |
|
|
|
953 |
|
|
|
|
|
|
|
|
|
|
|
251 |
|
|
|
953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period (Consolidated balance sheets) |
|
|
5,614 |
|
|
|
5,893 |
|
|
|
4,603 |
|
|
|
4,882 |
|
|
|
975 |
|
|
|
985 |
|
|
|
36 |
|
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Investments include equity instruments either classified as non-current
available-for-sale financial assets or accounted for using the equity method. |
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
26
SIEMENS
CONSOLIDATED CHANGES IN EQUITY (unaudited)
For the six months ended March 31, 2008 and 2007
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other components of equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
Currency |
|
|
for-sale |
|
|
Derivative |
|
|
|
|
|
|
Treasury |
|
|
attributable |
|
|
|
|
|
|
|
|
|
Common |
|
|
paid-in |
|
|
Retained |
|
|
translation |
|
|
financial |
|
|
financial |
|
|
|
|
|
|
shares |
|
|
to shareholders |
|
|
Minority |
|
|
Total |
|
|
|
stock |
|
|
capital |
|
|
earnings |
|
|
differences |
|
|
assets |
|
|
instruments |
|
|
Total |
|
|
at cost |
|
|
of Siemens AG |
|
|
interest |
|
|
equity |
|
Balance at October 1, 2006 |
|
|
2,673 |
|
|
|
5,662 |
|
|
|
16,702 |
|
|
|
91 |
|
|
|
96 |
|
|
|
(31 |
) |
|
|
156 |
|
|
|
|
|
|
|
25,193 |
|
|
|
702 |
|
|
|
25,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income and expense recognized in equity |
|
|
|
|
|
|
|
|
|
|
2,563 |
|
|
|
(246 |
) |
|
|
(2 |
) |
|
|
53 |
|
|
|
(195 |
) |
|
|
|
|
|
|
2,368 |
|
|
|
97 |
|
|
|
2,465 |
|
Dividends |
|
|
|
|
|
|
|
|
|
|
(1,292 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,292 |
) |
|
|
(124 |
) |
|
|
(1,416 |
) |
Issuance of common stock and share-based payment |
|
|
16 |
|
|
|
358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
374 |
|
|
|
|
|
|
|
374 |
|
Purchase of common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(101 |
) |
|
|
(101 |
) |
|
|
|
|
|
|
(101 |
) |
Re-issuance of treasury stock |
|
|
|
|
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101 |
|
|
|
94 |
|
|
|
|
|
|
|
94 |
|
Other changes in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8 |
) |
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2007 |
|
|
2,689 |
|
|
|
6,013 |
|
|
|
17,973 |
|
|
|
(155 |
) |
|
|
94 |
|
|
|
22 |
|
|
|
(39 |
) |
|
|
|
|
|
|
26,636 |
|
|
|
667 |
|
|
|
27,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at October 1, 2007 |
|
|
2,743 |
|
|
|
6,080 |
|
|
|
20,453 |
|
|
|
(475 |
) |
|
|
126 |
|
|
|
69 |
|
|
|
(280 |
) |
|
|
|
|
|
|
28,996 |
|
|
|
631 |
|
|
|
29,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income and expense recognized in equity |
|
|
|
|
|
|
|
|
|
|
7,003 |
|
|
|
(782 |
) |
|
|
(72 |
) |
|
|
184 |
|
|
|
(670 |
) |
|
|
|
|
|
|
6,333 |
|
|
|
41 |
|
|
|
6,374 |
|
Dividends |
|
|
|
|
|
|
|
|
|
|
(1,462 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,462 |
) |
|
|
(76 |
) |
|
|
(1,538 |
) |
Issuance of common stock and share-based payment |
|
|
|
|
|
|
41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41 |
|
|
|
|
|
|
|
41 |
|
Purchase of common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,998 |
) |
|
|
(1,998 |
) |
|
|
|
|
|
|
(1,998 |
) |
Re-issuance of treasury stock |
|
|
|
|
|
|
(67 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
343 |
|
|
|
276 |
|
|
|
|
|
|
|
276 |
|
Other changes in equity |
|
|
|
|
|
|
(14 |
) |
|
|
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(25 |
) |
|
|
(42 |
) |
|
|
(67 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2008 |
|
|
2,743 |
|
|
|
6,040 |
|
|
|
25,983 |
|
|
|
(1,257 |
) |
|
|
54 |
|
|
|
253 |
|
|
|
(950 |
) |
|
|
(1,655 |
) |
|
|
32,161 |
|
|
|
554 |
|
|
|
32,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27
SIEMENS
SEGMENT INFORMATION (continuing operations unaudited)
As of and for the three months ended March 31, 2008 and 2007 and as of September 30, 2007
(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) |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
3/31/08 |
|
|
9/30/07 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Operations Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automation and Drives (A&D) |
|
|
4,814 |
|
|
|
4,154 |
|
|
|
3,763 |
|
|
|
3,296 |
|
|
|
508 |
|
|
|
415 |
|
|
|
4,271 |
|
|
|
3,711 |
|
|
|
712 |
|
|
|
526 |
|
|
|
7,210 |
|
|
|
7,026 |
|
|
|
505 |
|
|
|
405 |
|
|
|
97 |
|
|
|
121 |
|
|
|
117 |
|
|
|
74 |
|
Industrial Solutions and Services (I&S) |
|
|
2,602 |
|
|
|
2,434 |
|
|
|
1,878 |
|
|
|
1,911 |
|
|
|
250 |
|
|
|
261 |
|
|
|
2,128 |
|
|
|
2,172 |
|
|
|
167 |
|
|
|
100 |
|
|
|
1,003 |
|
|
|
1,198 |
|
|
|
204 |
|
|
|
137 |
|
|
|
21 |
|
|
|
22 |
|
|
|
23 |
|
|
|
29 |
|
Siemens Building Technologies (SBT) |
|
|
1,333 |
|
|
|
1,364 |
|
|
|
1,175 |
|
|
|
1,311 |
|
|
|
26 |
|
|
|
24 |
|
|
|
1,201 |
|
|
|
1,335 |
|
|
|
90 |
|
|
|
100 |
|
|
|
1,828 |
|
|
|
1,807 |
|
|
|
130 |
|
|
|
173 |
|
|
|
25 |
|
|
|
21 |
|
|
|
28 |
|
|
|
39 |
|
Osram |
|
|
1,188 |
|
|
|
1,189 |
|
|
|
1,186 |
|
|
|
1,185 |
|
|
|
2 |
|
|
|
4 |
|
|
|
1,188 |
|
|
|
1,189 |
|
|
|
122 |
|
|
|
125 |
|
|
|
2,238 |
|
|
|
1,994 |
|
|
|
28 |
|
|
|
175 |
|
|
|
75 |
|
|
|
71 |
|
|
|
57 |
|
|
|
62 |
|
Transportation Systems (TS) |
|
|
838 |
|
|
|
714 |
|
|
|
978 |
|
|
|
1,152 |
|
|
|
4 |
|
|
|
9 |
|
|
|
982 |
|
|
|
1,161 |
|
|
|
(153 |
) |
|
|
58 |
|
|
|
(432 |
) |
|
|
(58 |
) |
|
|
(40 |
) |
|
|
155 |
|
|
|
17 |
|
|
|
9 |
|
|
|
23 |
|
|
|
14 |
|
Power Generation (PG) |
|
|
6,062 |
|
|
|
5,017 |
|
|
|
2,925 |
|
|
|
3,067 |
|
|
|
7 |
|
|
|
5 |
|
|
|
2,932 |
|
|
|
3,072 |
|
|
|
(221 |
) |
|
|
330 |
|
|
|
361 |
|
|
|
1,371 |
|
|
|
684 |
|
|
|
703 |
|
|
|
54 |
|
|
|
62 |
|
|
|
53 |
|
|
|
58 |
|
Power Transmission and Distribution (PTD) |
|
|
2,864 |
|
|
|
2,476 |
|
|
|
1,796 |
|
|
|
1,628 |
|
|
|
107 |
|
|
|
128 |
|
|
|
1,903 |
|
|
|
1,756 |
|
|
|
220 |
|
|
|
143 |
|
|
|
2,228 |
|
|
|
1,865 |
|
|
|
62 |
|
|
|
78 |
|
|
|
34 |
|
|
|
36 |
|
|
|
25 |
|
|
|
21 |
|
Medical Solutions (Med) |
|
|
2,790 |
|
|
|
2,544 |
|
|
|
2,705 |
|
|
|
2,453 |
|
|
|
17 |
|
|
|
17 |
|
|
|
2,722 |
|
|
|
2,470 |
|
|
|
341 |
|
|
|
332 |
|
|
|
12,640 |
|
|
|
8,234 |
|
|
|
349 |
|
|
|
369 |
|
|
|
110 |
|
|
|
116 |
|
|
|
149 |
|
|
|
128 |
|
Siemens IT Solutions and Services |
|
|
1,445 |
|
|
|
1,106 |
|
|
|
879 |
|
|
|
1,025 |
|
|
|
387 |
|
|
|
326 |
|
|
|
1,266 |
|
|
|
1,351 |
|
|
|
(35 |
) |
|
|
80 |
|
|
|
421 |
|
|
|
253 |
|
|
|
5 |
|
|
|
(6 |
) |
|
|
25 |
|
|
|
63 |
|
|
|
54 |
|
|
|
71 |
|
Strategic Equity Investments (SEI) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14 |
|
|
|
99 |
|
|
|
5,435 |
|
|
|
4,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operations |
|
|
617 |
|
|
|
824 |
|
|
|
533 |
|
|
|
647 |
|
|
|
97 |
|
|
|
96 |
|
|
|
630 |
|
|
|
743 |
|
|
|
(54 |
) |
|
|
(112 |
) |
|
|
(734 |
) |
|
|
(704 |
) |
|
|
(116 |
) |
|
|
40 |
|
|
|
23 |
|
|
|
43 |
|
|
|
25 |
|
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations Groups |
|
|
24,553 |
|
|
|
21,822 |
|
|
|
17,818 |
|
|
|
17,675 |
|
|
|
1,405 |
|
|
|
1,285 |
|
|
|
19,223 |
|
|
|
18,960 |
|
|
|
1,203 |
|
|
|
1,781 |
|
|
|
32,198 |
|
|
|
27,877 |
|
|
|
1,811 |
|
|
|
2,229 |
|
|
|
481 |
|
|
|
564 |
|
|
|
554 |
|
|
|
522 |
|
Reconciliation to financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate items, pensions and eliminations |
|
|
(1,389 |
) |
|
|
(1,195 |
) |
|
|
13 |
|
|
|
50 |
|
|
|
(1,350 |
) |
|
|
(1,226 |
) |
|
|
(1,337 |
) |
|
|
(1,176 |
) |
|
|
(499 |
) |
|
|
(169 |
) |
|
|
(1,963 |
) |
|
|
(2,651 |
) |
|
|
(801 |
)(5) |
|
|
(461 |
)(5) |
|
|
(4 |
) |
|
|
16 |
|
|
|
32 |
|
|
|
(3 |
) |
Other interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(74 |
) |
|
|
(141 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets related and miscellaneous reconciling items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,653 |
|
|
|
62,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations (for columns Group profit/Net capital
employed, i.e. Income before income taxes/Total assets) |
|
|
23,164 |
|
|
|
20,627 |
|
|
|
17,831 |
|
|
|
17,725 |
|
|
|
55 |
|
|
|
59 |
|
|
|
17,886 |
|
|
|
17,784 |
|
|
|
630 |
|
|
|
1,471 |
|
|
|
92,888 |
|
|
|
87,658 |
|
|
|
1,010 |
|
|
|
1,768 |
|
|
|
477 |
|
|
|
580 |
|
|
|
586 |
|
|
|
519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes |
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing and Real Estate Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens Financial Services (SFS) |
|
|
186 |
|
|
|
177 |
|
|
|
170 |
|
|
|
163 |
|
|
|
16 |
|
|
|
14 |
|
|
|
186 |
|
|
|
177 |
|
|
|
101 |
|
|
|
137 |
|
|
|
8,792 |
|
|
|
8,912 |
|
|
|
200 |
|
|
|
116 |
|
|
|
121 |
|
|
|
117 |
|
|
|
70 |
|
|
|
63 |
|
Siemens Real Estate (SRE) |
|
|
416 |
|
|
|
414 |
|
|
|
93 |
|
|
|
113 |
|
|
|
323 |
|
|
|
301 |
|
|
|
416 |
|
|
|
414 |
|
|
|
60 |
|
|
|
42 |
|
|
|
3,167 |
|
|
|
3,091 |
|
|
|
24 |
|
|
|
53 |
|
|
|
48 |
|
|
|
40 |
|
|
|
40 |
|
|
|
37 |
|
Eliminations |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
(567 |
) |
|
|
(458 |
) |
|
|
(9 |
)(5) |
|
|
64 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Financing and Real Estate |
|
|
599 |
|
|
|
587 |
|
|
|
263 |
|
|
|
276 |
|
|
|
336 |
|
|
|
311 |
|
|
|
599 |
|
|
|
587 |
|
|
|
161 |
|
|
|
179 |
|
|
|
11,392 |
|
|
|
11,545 |
|
|
|
215 |
|
|
|
233 |
|
|
|
169 |
|
|
|
157 |
|
|
|
110 |
|
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations, reclassifications and Corporate Treasury |
|
|
(392 |
) |
|
|
(364 |
) |
|
|
|
|
|
|
|
|
|
|
(391 |
) |
|
|
(370 |
) |
|
|
(391 |
) |
|
|
(370 |
) |
|
|
(2 |
) |
|
|
31 |
|
|
|
(15,719 |
) |
|
|
(7,648 |
) |
|
|
398 |
(5) |
|
|
618 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
23,371 |
|
|
|
20,850 |
|
|
|
18,094 |
|
|
|
18,001 |
|
|
|
|
|
|
|
|
|
|
|
18,094 |
|
|
|
18,001 |
|
|
|
789 |
|
|
|
1,681 |
|
|
|
88,561 |
|
|
|
91,555 |
|
|
|
1,623 |
|
|
|
2,619 |
|
|
|
646 |
|
|
|
737 |
|
|
|
696 |
|
|
|
619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
5 and 58 for the three months ended March 31, 2008 and 2007, respectively. |
|
(5) |
|
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. |
The presentation of certain prior-year information has been reclassified to conform to the current
year presentation.
In November 2007, the Company announced plans to organize its operations in the
three Sectors Industry, Energy and Healthcare into related Divisions beginning
January 2008. The Companys financial reporting will be adapted to reflect the new
organizational structure and the new form will be published for the first time in
the third quarter of fiscal 2008.
28
SIEMENS
SEGMENT INFORMATION (continuing operations unaudited)
As of and for the six months ended March 31, 2008 and 2007 and as of September 30, 2007
(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) |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
3/31/08 |
|
|
9/30/07 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Operations Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automation and Drives (A&D) |
|
|
9,597 |
|
|
|
8,173 |
|
|
|
7,405 |
|
|
|
6,301 |
|
|
|
954 |
|
|
|
800 |
|
|
|
8,359 |
|
|
|
7,101 |
|
|
|
1,367 |
|
|
|
976 |
|
|
|
7,210 |
|
|
|
7,026 |
|
|
|
804 |
|
|
|
528 |
|
|
|
180 |
|
|
|
214 |
|
|
|
229 |
|
|
|
144 |
|
Industrial Solutions and Services (I&S) |
|
|
5,894 |
|
|
|
5,491 |
|
|
|
3,884 |
|
|
|
3,754 |
|
|
|
495 |
|
|
|
491 |
|
|
|
4,379 |
|
|
|
4,245 |
|
|
|
288 |
|
|
|
190 |
|
|
|
1,003 |
|
|
|
1,198 |
|
|
|
355 |
|
|
|
112 |
|
|
|
37 |
|
|
|
39 |
|
|
|
45 |
|
|
|
56 |
|
Siemens Building Technologies (SBT) |
|
|
2,628 |
|
|
|
2,750 |
|
|
|
2,357 |
|
|
|
2,506 |
|
|
|
45 |
|
|
|
42 |
|
|
|
2,402 |
|
|
|
2,548 |
|
|
|
168 |
|
|
|
172 |
|
|
|
1,828 |
|
|
|
1,807 |
|
|
|
112 |
|
|
|
117 |
|
|
|
45 |
|
|
|
69 |
|
|
|
56 |
|
|
|
66 |
|
Osram |
|
|
2,381 |
|
|
|
2,363 |
|
|
|
2,375 |
|
|
|
2,356 |
|
|
|
6 |
|
|
|
7 |
|
|
|
2,381 |
|
|
|
2,363 |
|
|
|
248 |
|
|
|
248 |
|
|
|
2,238 |
|
|
|
1,994 |
|
|
|
(79 |
) |
|
|
120 |
|
|
|
171 |
|
|
|
140 |
|
|
|
114 |
|
|
|
123 |
|
Transportation Systems (TS) |
|
|
2,278 |
|
|
|
1,933 |
|
|
|
2,020 |
|
|
|
2,213 |
|
|
|
10 |
|
|
|
21 |
|
|
|
2,030 |
|
|
|
2,234 |
|
|
|
(131 |
) |
|
|
105 |
|
|
|
(432 |
) |
|
|
(58 |
) |
|
|
247 |
|
|
|
254 |
|
|
|
31 |
|
|
|
20 |
|
|
|
36 |
|
|
|
27 |
|
Power Generation (PG) |
|
|
11,954 |
|
|
|
10,034 |
|
|
|
5,891 |
|
|
|
5,777 |
|
|
|
10 |
|
|
|
21 |
|
|
|
5,901 |
|
|
|
5,798 |
|
|
|
(86 |
) |
|
|
499 |
|
|
|
361 |
|
|
|
1,371 |
|
|
|
958 |
|
|
|
766 |
|
|
|
110 |
|
|
|
93 |
|
|
|
106 |
|
|
|
111 |
|
Power Transmission and Distribution (PTD) |
|
|
5,673 |
|
|
|
5,622 |
|
|
|
3,626 |
|
|
|
3,241 |
|
|
|
233 |
|
|
|
243 |
|
|
|
3,859 |
|
|
|
3,484 |
|
|
|
424 |
|
|
|
273 |
|
|
|
2,228 |
|
|
|
1,865 |
|
|
|
72 |
|
|
|
104 |
|
|
|
65 |
|
|
|
80 |
|
|
|
50 |
|
|
|
47 |
|
Medical Solutions (Med) |
|
|
5,596 |
|
|
|
4,755 |
|
|
|
5,346 |
|
|
|
4,541 |
|
|
|
29 |
|
|
|
31 |
|
|
|
5,375 |
|
|
|
4,572 |
|
|
|
673 |
|
|
|
636 |
|
|
|
12,640 |
|
|
|
8,234 |
|
|
|
418 |
|
|
|
490 |
|
|
|
250 |
|
|
|
212 |
|
|
|
299 |
|
|
|
205 |
|
Siemens IT Solutions and Services |
|
|
2,670 |
|
|
|
2,467 |
|
|
|
1,886 |
|
|
|
2,043 |
|
|
|
720 |
|
|
|
622 |
|
|
|
2,606 |
|
|
|
2,665 |
|
|
|
35 |
|
|
|
106 |
|
|
|
421 |
|
|
|
253 |
|
|
|
(139 |
) |
|
|
(129 |
) |
|
|
47 |
|
|
|
117 |
|
|
|
111 |
|
|
|
142 |
|
Strategic Equity Investments (SEI) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40 |
|
|
|
151 |
|
|
|
5,435 |
|
|
|
4,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operations |
|
|
1,352 |
|
|
|
1,576 |
|
|
|
1,143 |
|
|
|
1,361 |
|
|
|
195 |
|
|
|
182 |
|
|
|
1,338 |
|
|
|
1,543 |
|
|
|
(118 |
) |
|
|
(97 |
) |
|
|
(734 |
) |
|
|
(704 |
) |
|
|
(277 |
) |
|
|
(143 |
) |
|
|
49 |
|
|
|
68 |
|
|
|
49 |
|
|
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations Groups |
|
|
50,023 |
|
|
|
45,164 |
|
|
|
35,933 |
|
|
|
34,093 |
|
|
|
2,697 |
|
|
|
2,460 |
|
|
|
38,630 |
|
|
|
36,553 |
|
|
|
2,908 |
|
|
|
3,259 |
|
|
|
32,198 |
|
|
|
27,877 |
|
|
|
2,471 |
|
|
|
2,219 |
|
|
|
985 |
|
|
|
1,052 |
|
|
|
1,095 |
|
|
|
979 |
|
Reconciliation to financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate items, pensions and eliminations |
|
|
(2,831 |
) |
|
|
(2,547 |
) |
|
|
43 |
|
|
|
73 |
|
|
|
(2,594 |
) |
|
|
(2,340 |
) |
|
|
(2,551 |
) |
|
|
(2,267 |
) |
|
|
(792 |
) |
|
|
(820 |
) |
|
|
(1,963 |
) |
|
|
(2,651 |
) |
|
|
(1,951 |
)(5) |
|
|
(1,385 |
)(5) |
|
|
(2 |
) |
|
|
15 |
|
|
|
24 |
|
|
|
(10 |
) |
Other interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(195 |
) |
|
|
(229 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets related and miscellaneous reconciling items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,653 |
|
|
|
62,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operations (for columns Group profit/Net capital
employed, i.e. Income before income taxes/Total assets) |
|
|
47,192 |
|
|
|
42,617 |
|
|
|
35,976 |
|
|
|
34,166 |
|
|
|
103 |
|
|
|
120 |
|
|
|
36,079 |
|
|
|
34,286 |
|
|
|
1,921 |
|
|
|
2,210 |
|
|
|
92,888 |
|
|
|
87,658 |
|
|
|
520 |
|
|
|
834 |
|
|
|
983 |
|
|
|
1,067 |
|
|
|
1,119 |
|
|
|
969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes |
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing and Real Estate Groups |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens Financial Services (SFS) |
|
|
368 |
|
|
|
355 |
|
|
|
326 |
|
|
|
316 |
|
|
|
41 |
|
|
|
38 |
|
|
|
367 |
|
|
|
354 |
|
|
|
178 |
|
|
|
220 |
|
|
|
8,792 |
|
|
|
8,912 |
|
|
|
80 |
|
|
|
80 |
|
|
|
264 |
|
|
|
199 |
|
|
|
141 |
|
|
|
127 |
|
Siemens Real Estate (SRE) |
|
|
810 |
|
|
|
835 |
|
|
|
192 |
|
|
|
248 |
|
|
|
618 |
|
|
|
587 |
|
|
|
810 |
|
|
|
835 |
|
|
|
199 |
|
|
|
111 |
|
|
|
3,167 |
|
|
|
3,091 |
|
|
|
(8 |
) |
|
|
8 |
|
|
|
103 |
|
|
|
84 |
|
|
|
79 |
|
|
|
77 |
|
Eliminations |
|
|
(6 |
) |
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
(6 |
) |
|
|
(7 |
) |
|
|
(6 |
) |
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
(567 |
) |
|
|
(458 |
) |
|
|
36 |
(5) |
|
|
100 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Financing and Real Estate |
|
|
1,172 |
|
|
|
1,183 |
|
|
|
518 |
|
|
|
564 |
|
|
|
653 |
|
|
|
618 |
|
|
|
1,171 |
|
|
|
1,182 |
|
|
|
377 |
|
|
|
331 |
|
|
|
11,392 |
|
|
|
11,545 |
|
|
|
108 |
|
|
|
188 |
|
|
|
367 |
|
|
|
283 |
|
|
|
220 |
|
|
|
204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations, reclassifications and Corporate Treasury |
|
|
(751 |
) |
|
|
(706 |
) |
|
|
|
|
|
|
|
|
|
|
(756 |
) |
|
|
(738 |
) |
|
|
(756 |
) |
|
|
(738 |
) |
|
|
8 |
|
|
|
77 |
|
|
|
(15,719 |
) |
|
|
(7,648 |
) |
|
|
778 |
(5) |
|
|
1,237 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
47,613 |
|
|
|
43,094 |
|
|
|
36,494 |
|
|
|
34,730 |
|
|
|
|
|
|
|
|
|
|
|
36,494 |
|
|
|
34,730 |
|
|
|
2,306 |
|
|
|
2,618 |
|
|
|
88,561 |
|
|
|
91,555 |
|
|
|
1,406 |
|
|
|
2,259 |
|
|
|
1,350 |
|
|
|
1,350 |
|
|
|
1,339 |
|
|
|
1,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
92 and 63 for the six months ended March 31, 2008 and 2007, respectively. |
|
(5) |
|
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. |
The presentation of certain prior-year information has been reclassified to conform to the current
year presentation.
In November 2007, the Company announced plans to organize its operations in the
three Sectors Industry, Energy and Healthcare into related Divisions beginning
January 2008. The Companys financial reporting will be adapted to reflect the new
organizational structure and the new form will be published for the first time in
the third quarter of fiscal 2008.
29
SIEMENS
NOTES
TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
NOTES
1. Basis of presentation
The accompanying Interim Consolidated Financial Statements present the operations of Siemens
AG and its subsidiaries, (the Company or Siemens). The Interim Consolidated Financial Statements
have been prepared in accordance with International Financial Reporting Standards (IFRS) and its
interpretations issued by the International Accounting Standards Board (IASB), as adopted by the
European Union (EU). The Interim Consolidated Financial Statements also comply with IFRS as issued
by the IASB.
Siemens prepares and reports its Interim Consolidated Financial Statements in euros ().
Siemens is a German based multinational corporation with a balanced business portfolio of
activities predominantly in the field of electronics and electrical engineering.
Interim financial statementsThe accompanying Consolidated Balance Sheets as of March 31,
2008, the Consolidated Statements of Income and Income and Expense Recognized in Equity for the
three months and six months ended March 31, 2008 and 2007, the Consolidated Statements of Cash Flow
for the six months ended March 31, 2008 and 2007 and the Notes to Consolidated Financial Statements
are unaudited and have been prepared for interim financial information. These interim financial
statements have been prepared in compliance with International Accounting Standard (IAS) 34,
Interim financial reporting, and should be read in connection with the IFRS Consolidated Financial
Statements prepared for fiscal 2007. The interim financial statements are based on the accounting
principles and practices applied in the preparation of the financial statements for fiscal 2007. In
the opinion of management, these unaudited Interim Consolidated Financial Statements include all
adjustments of a normal and recurring nature and necessary for a fair presentation of results for
the interim periods. Results for the three months and six months ended March 31, 2008 are not
necessarily indicative of future results.
Financial statement presentationThe presentation of the Companys worldwide financial data
(Siemens) is accompanied by a component model presentation that shows the worldwide financial
position, results of operations and cash flows for the operating businesses (Operations) separately
from those for financing and real estate activities (Financing and Real Estate), the Corporate
Treasury and certain elimination and reclassification effects (Eliminations, reclassifications and
Corporate Treasury). These components contain the Companys reportable segments (also referred to
as Groups). The financial data presented for these components are not intended to present the
financial position, results of operations and cash flows as if they were separate entities under
IFRS. See also Note 14. The information disclosed in these Notes relates to Siemens unless
otherwise stated.
Basis of consolidationThe Interim Consolidated Financial Statements include the accounts of
Siemens AG and its subsidiaries which are directly or indirectly controlled. Control is generally
conveyed by ownership of the majority of voting rights. Additionally, the Company consolidates
special purpose entities (SPEs) when, based on the evaluation of the substance of the relationship
with Siemens, the Company concludes that it controls the SPE. Associated companiescompanies in
which Siemens has the ability to exercise significant influence over operating and financial
policies (generally through direct or indirect ownership of 20% to 50% of the voting rights)are
recorded in the Consolidated Financial Statements using the equity method of accounting. Companies
in which Siemens has joint control are also recorded using the equity method.
Use of estimatesThe preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent amounts at the date of the financial statements and reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates.
Income taxesThe current tax expense in interim periods is based on the current estimated
annual effective tax rate.
ReclassificationThe presentation of certain prior-year information has been reclassified to
conform to the current year presentation.
30
SIEMENS
NOTES
TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
In January 2008, the IASB published the amended standards IFRS 3, Business Combinations
(IFRS 3(2008)) and IAS 27, Consolidated and Separate Financial Statements (IAS 27 (2008)).
IFRS 3 (2008) reconsiders the application of acquisition accounting for business combinations.
Major changes relate to the measurement of non-controlling interests, the accounting for business
combinations achieved in stages as well as the treatment of contingent consideration and
acquisition-related costs. Based on the new regulation, non-controlling interests may be measured
at their fair value (full-goodwill-methodology) or at the proportional fair value of assets
acquired and liabilities assumed. In business combinations achieved in stages, any previously held
equity interest in the acquiree is remeasured to its acquisition date fair value. Any changes to
contingent consideration classified as a liability at the acquisition date are recognized in profit
and loss. Acquisition-related costs are expensed in the period they are incurred.
Major changes in relation to IAS 27 (2008) relate to the accounting for transactions which do
not result in a change of control as well as to those leading to a loss of control. If there is no
loss of control, transactions with non-controlling interests are accounted for as equity
transactions not affecting profit and loss. At the date control is lost, any retained equity
interests are remeasured to fair value. Based on the amended standard, non-controlling interests
may show a deficit balance since both profits and losses are allocated to the shareholders based on
their equity interests.
The amended standards are effective for business combinations in annual periods beginning on
or after July 1, 2009. The Company is currently evaluating the potential effects of IFRS 3(2008)
and IAS 27(2008) and will determine an adoption date.
2. Acquisitions, dispositions and discontinued operations
At the beginning of November 2007, Siemens completed the acquisition of Dade Behring Holdings,
Inc. (Dade Behring), USA, a leading manufacturer and distributor of diagnostic products and
services to clinical laboratories. Dade Behring, which was consolidated as of November 2007 will be
integrated into Medical Solutions (Med) Diagnostics division. The aggregate consideration,
including the assumption of debt, amounts to approximately 4.9 billion (including 69 cash
acquired). The company has not yet finalized the purchase price allocation. Based on the
preliminary purchase price allocation, approximately 1,145 was allocated to intangible assets
subject to amortization and approximately 3,326 was recorded as goodwill.
|
b) |
|
Dispositions and discontinued operations |
|
ba) |
|
Siemens VDO Automotive (SV) |
At the beginning of December 2007, Siemens sold its SV activities to Continental AG, Hanover,
Germany for a sales price of approximately 11.4 billion. The transaction resulted in a preliminary
gain, net of related costs of 5,523, which is included in discontinued operations. The historical
results of SV are reported as discontinued operations in the Consolidated Statements of Income for
all periods presented.
31
SIEMENS
NOTES
TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
The net results of SV presented in the Consolidated Statements of Income consist of the
following components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Revenue |
|
|
|
|
|
|
2,687 |
|
|
|
1,842 |
|
|
|
5,105 |
|
Costs and expenses |
|
|
(10 |
) |
|
|
(2,536 |
) |
|
|
(1,968 |
) |
|
|
(4,826 |
) |
Gain on disposal |
|
|
|
|
|
|
|
|
|
|
5,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
discontinued
operations before
income taxes |
|
|
(10 |
) |
|
|
151 |
|
|
|
5,397 |
|
|
|
279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
(2 |
) |
|
|
(41 |
) |
|
|
35 |
|
|
|
(76 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
discontinued
operations, net of
income taxes |
|
|
(12 |
) |
|
|
110 |
|
|
|
5,432 |
|
|
|
203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a result of taxable reorganizations in fiscal 2007, prior to the completion of the sale, no
disposal gain related income taxes arose on the disposal of SV in December 2007.
The historical results of the former operating segment Com, with the exception of certain
business activities which are now part of Other Operations and A&D (see Note 14 for further
information), are reported as discontinued operations in the Companys Consolidated Statements of
Income for all periods presented. The Com activities previously included the Mobile Devices (MD)
business, which was sold in fiscal 2005, and the carrier-related operations which were contributed
to Nokia Siemens Networks B.V., the Netherlands (NSN) in April 2007. The Company is actively
pursuing its plan to dispose of the enterprise networks business, which was also previously
included in Com. The Company expects to realize a substantial loss upon closing of the transaction.
The assets and liabilities of the above transactions were classified on the balance sheet as
held for disposal and measured at the lower of their carrying amount and fair value less costs to
sell. As of March 31, 2008 and as of September 30, 2007, the assets and liabilities classified as
held for disposal include the assets and liabilities of the enterprise networks business and also
certain amounts relating to the carrier-related operations.
The carrying amounts of the major classes of assets and liabilities classified as held for
disposal and relating to the above transactions were as follows:
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
September 30, |
|
|
|
2008 |
|
|
2007 |
|
Cash and cash equivalents* |
|
|
243 |
|
|
|
750 |
|
Trade and other receivables |
|
|
484 |
|
|
|
572 |
|
Inventories |
|
|
269 |
|
|
|
246 |
|
Other financial assets |
|
|
277 |
|
|
|
265 |
|
Other assets |
|
|
304 |
|
|
|
287 |
|
|
|
|
|
|
|
|
Assets classified as held for disposal |
|
|
1,577 |
|
|
|
2,120 |
|
|
|
|
|
|
|
|
Trade payables |
|
|
350 |
|
|
|
388 |
|
Current provisions |
|
|
65 |
|
|
|
67 |
|
Pension plans and similar commitments |
|
|
228 |
|
|
|
148 |
|
Payroll and social security taxes |
|
|
67 |
|
|
|
101 |
|
Other employee related costs |
|
|
248 |
|
|
|
164 |
|
Other liabilities |
|
|
446 |
|
|
|
530 |
|
|
|
|
|
|
|
|
Liabilities associated with assets classified as held for disposal |
|
|
1,404 |
|
|
|
1,398 |
|
|
|
|
|
|
|
|
|
|
|
* |
|
As of September 30, 2007 this caption also includes a portion still related to the carrier
operations. |
The consolidated balance sheet as of March 31, 2008 includes 487 of assets and 208 of
liabilities classified as held for disposal relating to minor transactions not presented as
discontinued operations.
The net results of Com presented in the Consolidated Statements of Income as discontinued
operations consist of the following components:
32
SIEMENS
NOTES
TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Revenue |
|
|
767 |
|
|
|
2,918 |
|
|
|
1,536 |
|
|
|
5,915 |
|
Costs and expenses |
|
|
(908 |
) |
|
|
(2,943 |
) |
|
|
(1,713 |
) |
|
|
(5,863 |
) |
Loss on measurement to fair value less cost to sell |
|
|
(12 |
) |
|
|
(148 |
) |
|
|
(35 |
) |
|
|
(148 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations before
income taxes |
|
|
(153 |
) |
|
|
(173 |
) |
|
|
(212 |
) |
|
|
(96 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
12 |
|
|
|
36 |
|
|
|
24 |
|
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of
income taxes |
|
|
(141 |
) |
|
|
(137 |
) |
|
|
(188 |
) |
|
|
(63 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in income (loss) from discontinued operations, net of income taxes are also legal and
regulatory expenses related to Com (see Note 11 for additional information).
3. Other operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Gains on sales of property,
plant and equipment and
intangibles |
|
|
46 |
|
|
|
24 |
|
|
|
158 |
|
|
|
81 |
|
Gains on disposals of businesses |
|
|
42 |
|
|
|
24 |
|
|
|
87 |
|
|
|
134 |
|
Other |
|
|
99 |
|
|
|
57 |
|
|
|
132 |
|
|
|
103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
187 |
|
|
|
105 |
|
|
|
377 |
|
|
|
318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on disposals of businesses for the six months ended March 31, 2007 includes the gain of
76 on the sale of Siemens Dispolok GmbH Germany, which was part of the Group Transportation
Systems (TS), to Mitsui Group.
4. Other operating expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Impairment of goodwill |
|
|
|
|
|
|
(52 |
) |
|
|
(73 |
) |
|
|
(52 |
) |
Losses on sales of property,
plant and equipment and
intangibles |
|
|
(12 |
) |
|
|
(32 |
) |
|
|
(19 |
) |
|
|
(40 |
) |
Losses on disposals of businesses |
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
|
|
(10 |
) |
Other |
|
|
(242 |
) |
|
|
(75 |
) |
|
|
(363 |
) |
|
|
(557 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(257 |
) |
|
|
(161 |
) |
|
|
(463 |
) |
|
|
(659 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill in the six months ended March 31, 2008 includes (70) related to the
buildings and infrastructure activities which were acquired as part of the VA Technologie AG
acquisition in fiscal 2005 and which are included in Other Operations (see also Note 6). Impairment
of goodwill of (52) in the three and six months ended March 31, 2007 relates to a cash-generating
unit made up principally of regional payphone activities included in Other Operations.
Other for the three and six months ended March 31, 2008 includes (148) and (241),
respectively, for outside advisors engaged in connection with investigations into alleged
violations of anti-corruption laws and related matters as well as remediation activities (see Notes
11 and 14 for additional information). Other for the six months ended March 31, 2007 includes a
(423) impact related to a fine imposed by the European Commission in connection with an antitrust
investigation involving suppliers of high-voltage gas-isolated switching systems in the power
transmission and distribution industry between 1988 and 2004. The fine was not deductible for
income tax purposes.
33
SIEMENS
NOTES
TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
5. Financial income (expense), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Interest income (expense), net |
|
|
7 |
|
|
|
(30 |
) |
|
|
3 |
|
|
|
(45 |
) |
Income from pension plans and similar commitments, net |
|
|
36 |
|
|
|
52 |
|
|
|
71 |
|
|
|
100 |
|
Income from available-for-sale financial assets, net |
|
|
42 |
|
|
|
36 |
|
|
|
53 |
|
|
|
53 |
|
Other financial expense, net |
|
|
(82 |
) |
|
|
(28 |
) |
|
|
(102 |
) |
|
|
(67 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
30 |
|
|
|
25 |
|
|
|
41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The total amounts of interest income and expense were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Interest income |
|
|
199 |
|
|
|
187 |
|
|
|
428 |
|
|
|
391 |
|
Interest expense |
|
|
(192 |
) |
|
|
(217 |
) |
|
|
(425 |
) |
|
|
(436 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense), net |
|
|
7 |
|
|
|
(30 |
) |
|
|
3 |
|
|
|
(45 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereof: Interest income (expense) of Operations, net |
|
|
4 |
|
|
|
(17 |
) |
|
|
25 |
|
|
|
(38 |
) |
Thereof: Other interest income (expense), net |
|
|
3 |
|
|
|
(13 |
) |
|
|
(22 |
) |
|
|
(7 |
) |
Interest income (expense) of Operations, net includes interest income and expense primarily
related to receivables from customers and payables to suppliers, interest on advances from
customers and advanced financing of customer contracts. Other interest income (expense), net
includes all other interest amounts primarily consisting of interest relating to corporate debt and
related hedging activities, as well as interest income on corporate assets.
The components of Income from pension plans and similar commitments, net were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Expected return on plan assets |
|
|
377 |
|
|
|
374 |
|
|
|
746 |
|
|
|
730 |
|
Interest cost |
|
|
(341 |
) |
|
|
(322 |
) |
|
|
(675 |
) |
|
|
(630 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from pension plans and similar commitments, net |
|
|
36 |
|
|
|
52 |
|
|
|
71 |
|
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost for pension plans and similar commitments are allocated among functional costs
(Cost of goods sold and services rendered, Research and development expenses, Marketing, selling
and general administrative expenses).
The components of Income from available-for-sale financial assets, net were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Dividends received |
|
|
35 |
|
|
|
58 |
|
|
|
43 |
|
|
|
70 |
|
Impairment |
|
|
(5 |
) |
|
|
(12 |
) |
|
|
(16 |
) |
|
|
(22 |
) |
Gains on sales, net |
|
|
10 |
|
|
|
14 |
|
|
|
17 |
|
|
|
44 |
|
Other |
|
|
2 |
|
|
|
(24 |
) |
|
|
9 |
|
|
|
(39 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from available-for-sale financial assets, net |
|
|
42 |
|
|
|
36 |
|
|
|
53 |
|
|
|
53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34
SIEMENS
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
6. Goodwill
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
September 30, |
|
|
|
2008 |
|
|
2007 |
|
Operations |
|
|
|
|
|
|
|
|
Automation and Drives (A&D) |
|
|
2,673 |
|
|
|
2,871 |
|
Industrial Solutions and Services (I&S) |
|
|
999 |
|
|
|
1,048 |
|
Siemens Building Technologies (SBT) |
|
|
605 |
|
|
|
610 |
|
Osram |
|
|
88 |
|
|
|
79 |
|
Transportation Systems (TS) |
|
|
178 |
|
|
|
181 |
|
Power Generation (PG) |
|
|
1,525 |
|
|
|
1,582 |
|
Power Transmission and Distribution (PTD) |
|
|
546 |
|
|
|
578 |
|
Medical Solutions (Med) |
|
|
7,875 |
|
|
|
5,197 |
|
Siemens IT Solutions and Services |
|
|
120 |
|
|
|
129 |
|
Other Operations |
|
|
30 |
|
|
|
100 |
|
Financing and Real Estate |
|
|
|
|
|
|
|
|
Siemens Financial Services (SFS) |
|
|
111 |
|
|
|
126 |
|
Siemens Real Estate (SRE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
14,750 |
|
|
|
12,501 |
|
|
|
|
|
|
|
|
The net increase in goodwill of 2,249 during the six months ended March 31, 2008 results from
3,416 related to acquisitions and purchase accounting adjustments, offset by (1,066) primarily
for U.S.$. currency translation adjustments, (73) impairment relating predominantly to Other
Operations (see also Note 4) and dispositions of (28). Acquisitions and purchase accounting
adjustments related primarily to Meds acquisition of Dade Behring (see Note 2 for further
information).
7. Other intangible assets
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
September 30, |
|
|
|
2008 |
|
|
2007 |
|
Software and other internally generated intangible assets |
|
|
2,354 |
|
|
|
2,362 |
|
Less: accumulated amortization |
|
|
(1,437 |
) |
|
|
(1,468 |
) |
|
|
|
|
|
|
|
Software and other internally generated intangible assets, net |
|
|
917 |
|
|
|
894 |
|
|
|
|
|
|
|
|
Patents, licenses and similar rights |
|
|
6,186 |
|
|
|
5,406 |
|
Less: accumulated amortization |
|
|
(1,860 |
) |
|
|
(1,681 |
) |
|
|
|
|
|
|
|
Patents, licenses and similar rights, net |
|
|
4,326 |
|
|
|
3,725 |
|
|
|
|
|
|
|
|
Other intangible assets |
|
|
5,243 |
|
|
|
4,619 |
|
|
|
|
|
|
|
|
The increase in Other intangible assets during the six months ended March 31, 2008 is
primarily due to the acquisition of Dade Behring (see Note 2 for further information).
Amortization expense reported in Income (loss) from continuing operations before income taxes
amounted to 215 and 178, respectively, for the three months ended March 31, 2008 and 2007, and
411 and 311 for the six months ended March 31, 2008 and 2007, respectively.
35
SIEMENS
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
8. Pension plans and similar commitments
Principal pension benefits: Components of net periodic benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Three months ended |
|
|
|
March 31, 2008 |
|
|
March 31, 2007 |
|
|
|
Total |
|
|
Domestic |
|
|
Foreign |
|
|
Total |
|
|
Domestic |
|
|
Foreign |
|
Service cost |
|
|
127 |
|
|
|
82 |
|
|
|
45 |
|
|
|
178 |
|
|
|
93 |
|
|
|
85 |
|
Interest cost |
|
|
310 |
|
|
|
190 |
|
|
|
120 |
|
|
|
312 |
|
|
|
184 |
|
|
|
128 |
|
Expected return on plan assets |
|
|
(368 |
) |
|
|
(233 |
) |
|
|
(135 |
) |
|
|
(382 |
) |
|
|
(240 |
) |
|
|
(142 |
) |
Amortization of past service cost (benefit) |
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
Loss (gain) due to settlements and
curtailments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4 |
) |
|
|
|
|
|
|
(4 |
) |
Net periodic benefit cost |
|
|
68 |
|
|
|
39 |
|
|
|
29 |
|
|
|
103 |
|
|
|
37 |
|
|
|
66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Germany |
|
|
39 |
|
|
|
|
|
|
|
|
|
|
|
37 |
|
|
|
|
|
|
|
|
|
U.S. |
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
33 |
|
|
|
|
|
|
|
|
|
U.K. |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
27 |
|
|
|
|
|
|
|
|
|
Other |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
Six months ended |
|
|
|
March 31, 2008 |
|
|
March 31, 2007 |
|
|
|
Total |
|
|
Domestic |
|
|
Foreign |
|
|
Total |
|
|
Domestic |
|
|
Foreign |
|
Service cost |
|
|
263 |
|
|
|
158 |
|
|
|
105 |
|
|
|
356 |
|
|
|
187 |
|
|
|
169 |
|
Interest cost |
|
|
630 |
|
|
|
383 |
|
|
|
247 |
|
|
|
624 |
|
|
|
367 |
|
|
|
257 |
|
Expected return on plan assets |
|
|
(742 |
) |
|
|
(465 |
) |
|
|
(277 |
) |
|
|
(766 |
) |
|
|
(480 |
) |
|
|
(286 |
) |
Amortization of past service cost (benefit) |
|
|
(2 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
(2 |
) |
Loss due to settlements and curtailments |
|
|
(35 |
) |
|
|
(21 |
) |
|
|
(14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net periodic benefit cost |
|
|
114 |
|
|
|
55 |
|
|
|
59 |
|
|
|
212 |
|
|
|
74 |
|
|
|
138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Germany |
|
|
55 |
|
|
|
|
|
|
|
|
|
|
|
74 |
|
|
|
|
|
|
|
|
|
U.S. |
|
|
53 |
|
|
|
|
|
|
|
|
|
|
|
70 |
|
|
|
|
|
|
|
|
|
U.K. |
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
53 |
|
|
|
|
|
|
|
|
|
Other |
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
15 |
|
|
|
|
|
|
|
|
|
Net periodic benefit cost in the tables above includes amounts related to discontinued
operations. During the six months ended March 31, 2008 and 2007, net periodic benefit cost related
to discontinued operations were (10) and 64, respectively. Net periodic benefit cost related to
discontinued operations during the three months ended March 31, 2008 and 2007 amounted to 7 and
32, respectively. The amount for the six months ended March 31, 2008, includes (43) settlement
gain as a result from the disposal of the SV pension liabilities upon closing of the transaction in
December 2007 (see Note 2 for further information) and 33 other net periodic benefit cost of SV
and Siemens enterprise networks business.
9. Shareholders equity
Treasury Stock
At the Annual Shareholders Meeting on January 24, 2008, the Companys shareholders authorized
the Company to repurchase up to 10% of the 2,743 common stock existing on the date of the Annual
Shareholders Meeting until July 23, 2009.
On January 28, 2008, the Company launched the first tranche of the share buyback program that
was announced in November 2007. The Company announced the intent to acquire shares in the amount of
approximately 2 billion for the purpose of cancellation and reduction of capital stock and, to a
lesser extent, to fulfill obligations arising out of stock compensation programs until the end of
April 2008. The Company expects to conduct share repurchases with a total volume of up to 10
billion by 2010.
In the six months ended March 31, 2008, Siemens repurchased a total of 23,315,163 shares at an
average price of 85.72 per share. During the six months ended March 31, 2008, a total of 3,489,775
shares of Treasury Stock were sold. Thereof, 2,763,282 shares were issued to share-based
compensation plan participants to accommodate the exercise of stock options and 719,885 shares were
issued to employees under the compensatory employee share purchase program (see Note 12 for
additional information).
36
SIEMENS
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
Miscellaneous
According to the resolution of the Annual Shareholders Meeting on January 24, 2008, Siemens
AG management distributed 1,462 (1.60 per share) of the fiscal 2007 earnings of Siemens AG as an
ordinary dividend to its shareholders. The dividend was paid on January 25, 2008.
10. Commitments and contingencies
Guarantees and other commitments
The following table presents the undiscounted amount of maximum potential future payments for
each major group of guarantees:
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
September 30, |
|
|
|
2008 |
|
|
2007 |
|
Guarantees: |
|
|
|
|
|
|
|
|
Credit guarantees |
|
|
525 |
|
|
|
386 |
|
Guarantees of third-party performance |
|
|
1,942 |
|
|
|
1,995 |
|
Herkules obligations* |
|
|
3,890 |
|
|
|
4,200 |
|
Other guarantees |
|
|
2,993 |
|
|
|
1,882 |
|
|
|
|
|
|
|
|
|
|
|
9,350 |
|
|
|
8,463 |
|
|
|
|
|
|
|
|
|
|
|
* |
|
For additional information on the Herkules obligations, see the Companys Consolidated
Financial Statements as of September 30, 2007. |
The increase in Other guarantees as of March 31, 2008, is primarily due to the amounts related
to the indemnification provisions related to the sale of the SV activities to Continental AG (see
Note 2 for additional information).
11. Legal proceedings
As previously reported, public prosecutors and other government authorities in jurisdictions
around the world are conducting investigations of Siemens and certain of our 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.
For more information regarding these and other legal proceedings in which Siemens is involved,
as well as the potential risks associated with such proceedings and their potential financial
impact on the Company, please refer to Siemens Annual Report for the fiscal year ended September
30, 2007 (Annual Report) and its annual report on Form 20-F for the fiscal year ended September 30,
2007 (Form 20-F), and, in particular, to the information contained in Item 3: Key Information
Risk Factors, Item 4: Information on the Company Legal Proceedings, Item 5: Operating
Financial Review and Prospects, and Item 15: Controls and Procedures of the Form 20-F.
Developments regarding investigations and legal proceedings that have occurred since the
publication of Siemens Annual Report and Form 20-F include:
|
|
|
The investigation of the Munich public prosecutor extends beyond the former
Communications group. To date, the Munich public prosecutor has announced that groups
under investigation include Siemens Power Transmission and Distribution (PTD) group,
in which a former member of the Managing Board is a suspect, the Power Generation (PG)
group, the Medical Solutions (Med) group, the Transportation Systems (TS) group and
Siemens IT Solutions and Services group. The investigation of the Munich public
prosecutor remains ongoing. |
|
|
|
|
Debevoise & Plimpton LLP (Debevoise), an independent external law firm engaged by
the Company 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 Companys compliance and control systems, is
investigating leads generated by the Companys amnesty program, as well as other
sources. |
37
SIEMENS
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
|
|
|
In the course of its investigation, Debevoise identifies and reports to the
Company evidence of payments to business consultants, sales-related intermediaries
and cash payments. The Company analyzes whether such payments were considered in its
analysis of income tax non-deductible payments conducted in fiscal 2007. |
|
|
|
|
In November 2007, authorities in Nigeria conducted searches of the premises of
Siemens Ltd. Nigeria in connection with an investigation into alleged illegal payments
to Nigerian public officials between 2002 and 2005. |
|
|
|
|
In December 2007, the Norwegian public prosecutors office conducted a search of
Siemens AS Norways offices as well as several private homes in connection with
payments made by Siemens for golf trips in 2003 and 2004, which were attended by
members of the Norwegian Department of Defense. In light of this and the previously
reported investigation of allegations of bribery and overcharging of the Department of
Defense related to the awarding of a contract for the delivery of communication
equipment, the Department of Defense has announced that it will not conduct further
business with Siemens at this time. |
|
|
|
|
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. In November 2007, the public prosecutor filed charges against the
two employees, Siemens S.p.A. and one of its subsidiaries, as well as against other
individuals and companies not affiliated with Siemens. |
|
|
|
|
Authorities in Russia are conducting an investigation into alleged embezzlement of
public funds when awarding contracts to Siemens for the delivery of medical equipment
to public authorities in Ekaterinburg in the years 2003 to 2005. An employee of
Siemens Russia was previously arrested in connection with this investigation. |
|
|
|
|
In January 2008, the Vienna public prosecutor announced an investigation into
payments relating to Siemens AG Austria and its subsidiary VAI for which valid
consideration could not be identified. |
|
|
|
|
In January 2008, the Malaysian Anti-Corruption Agency executed a search warrant at
the premises of Siemens Malaysia and requested interviews with several employees of
Siemens Malaysia in connection with an investigation into a project involving the PTD
group. |
|
|
|
|
As previously disclosed, Siemens was contacted by representatives of regional
development banks, including the Inter-American Development Bank, the Asian
Development Bank, the African Development Bank, the European Bank for Reconstruction
and Development and the European Investment Bank, regarding anti-corruption inquiries
and other matters of relevance to them. |
|
|
|
|
As previously reported, in connection with the investigation relating to an
agreement entered into by Siemens with an entity controlled by the former head of the
independent employee association AUB (Arbeitsgemeinschaft Unabhängiger
Betriebsangehöriger), in April 2007, a former member of the Managing Board was
arrested and subsequently posted bail in the amount of 5 and was released from
custody. In connection with the posting of bail, a bank issued a bond (Bankbürgschaft)
in the amount of 5, 4.5 of which was guaranteed by the Company pursuant to the
provisions of German law. The warrant associated with the arrest of the former member
of the Managing Board has since been revoked and the bank bond, as well as the
Companys guarantee thereof, has been released. |
|
|
|
|
In January 2008, the Competition Authority of Slovakia imposed a fine of 3.3 on
Siemens and VA Tech in connection with an investigation into possible anti-trust
violations in the market for high-voltage gas-insulated switchgear. The Company has
filed an appeal against this decision. |
38
SIEMENS
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
|
|
|
In December 2007, a suit and motion for approval of a class action was filed in
Israel to commence a class action based on the fines imposed by the European
Commission for alleged anti-trust violations in connection with high-voltage
gas-insulated switchgear. Thirteen companies have been named as defendants in the suit
and motion, among them Siemens AG Germany, Siemens AG Austria and Siemens Israel Ltd.
The class action alleges damages to electricity consumers in Israel in the amount of
approximately 575 related to higher electricity prices claimed to have been paid
because of the alleged anti-trust violations. The court has not yet ruled on the
motion for approval of the class action. |
|
|
|
|
As previously reported, in December 2006, the Japanese Fair Trade Commission (FTC)
had 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. In February 2008, the FTC announced
their findings. Siemens was found not guilty of participating in anti-trust
violations, and was therefore not fined or otherwise punished. |
|
|
|
|
Pursuant to an agreement of June 6, 2005, the Company sold its mobile devices
business to Qisda Corp. (formerly named BenQ Corp.), a Taiwanese company. A dispute
arose in 2006 between the Company and Qisda concerning the calculation of the purchase
price. Beginning in September 2006, several subsidiaries in different countries used
by Qisda for purposes of the acquisition filed for insolvency protection and failed to
fulfill their obligations under various contracts transferred to them by the Company
under the agreement. On December 8, 2006, the Company initiated arbitration
proceedings against Qisda requesting a declaratory award that certain allegations made
by Qisda in relation to the purchase price calculation are unjustified. The Company
further requested an order that Qisda perform its obligations and/or the obligations
of its local subsidiaries assumed in connection with the acquisition or, in the
alternative, that Qisda indemnify the Company for any losses. The Companys request
for arbitration was filed with the International Chamber of Commerce in Paris. The
seat of arbitration is Zurich, Switzerland. In March 2007, Qisda raised a counterclaim
alleging that the Company made misrepresentations in connection with the sale of the
mobile devices business and asserted claims in connection with the purchase price.
Qisda amended its counterclaim in March 2008 by (i) changing its request for
declaratory relief with regard to the alleged misrepresentations to a request for
substantial damages, and (ii) raising further claims for substantial damages and
declaratory relief. The Company will request that the arbitral tribunal dismiss the
counterclaim. |
The Company remains subject to corruption-related investigations in the United States 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 Foreign Corrupt Practices Act (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, financial
results and reputation may also be negatively affected, particularly due to imposed penalties,
fines, disgorgements, compensatory damages, the formal or informal exclusion from public
procurement contracts or the loss of business licenses or permits. In addition to the amounts
previously reported, including the fine imposed by the Munich district court, no material charges
or provisions for any such penalties, fines, disgorgements or damages have been recorded or accrued
as management does not yet have enough information to estimate such amounts reliably. We expect
that we will need to record expenses and provisions in the future for penalties, fines or other
charges, which could be material, in connection with the investigations. On January 24, 2008, the
Company announced, at the Annual Shareholders Meeting, that the Securities and Exchange Commission
and the Department of Justice had agreed to begin discussions with the Company regarding a possible
settlement of their investigations into possible violations of U.S. law in connection with
allegations of corruption. The Company anticipates that such discussions will continue over many
months. The Company will also have to bear the costs of continuing investigations and related legal
proceedings, as well as the costs of on-going remediation efforts. Furthermore, changes affecting
the Companys course of business or changes to its compliance programs beyond those already taken
may be required.
Information required under IAS 37 Provisions, Contingent Liabilities and Contingent Assets is
not disclosed for certain legal proceedings, if the Company concludes that the disclosure can be
expected to prejudice seriously the outcome of the litigation.
39
SIEMENS
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
In addition to the investigations and legal proceedings described in Siemens Annual Report as
well as in Form 20-F and as updated above, 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 in its Annual Report as well as Form 20-F and
as updated 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. The final resolution of the matters discussed in this paragraph
could have a material effect on Siemens consolidated operating results for any reporting period in
which an adverse decision is rendered. However, Siemens believes that its consolidated financial
position should not be materially affected by the additional legal matters discussed in this
paragraph.
12. Share-based payment
Share-based payment plans at Siemens are designed as equity-settled plans as well as
cash-settled plans. Total expense for share-based payment recognized in net income for continuing
and discontinued operations in the three months ended March 31, 2008 and 2007 amounted to 1 and
11, respectively, and 41 and 36 for the six months ended March 31, 2008 and 2007, respectively.
This refers primarily to equity-settled awards, including the Companys employee share purchase
program.
For a description of the Siemens share-based payment plans, see the Companys Consolidated
Financial Statements as of September 30, 2007.
Stock Option Plans
Since the authority to distribute options under the 2001 Siemens Stock Option Plan expired on
December 13, 2006, no further options will be granted under this plan.
Details on option activity and weighted average exercise prices for the six months ended March
31, 2008 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended March 31, 2008 |
|
|
|
|
|
|
|
|
|
|
Weighted Average |
|
|
|
|
|
|
|
|
|
|
|
|
Remaining |
|
Aggregate intrinsic |
|
|
|
|
|
|
Weighted Average |
|
Contractual Term |
|
value (in millions |
|
|
Options |
|
Exercise Price |
|
(years) |
|
of ) |
Outstanding,
beginning of the period |
|
|
8,606,272 |
|
|
|
72.13 |
|
|
|
|
|
|
|
|
Options exercised |
|
|
(2,766,882 |
) |
|
|
69.83 |
|
|
|
|
|
|
|
|
Options forfeited |
|
|
(594,985 |
) |
|
|
69.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding, end of period |
|
|
5,244,405 |
|
|
|
73.59 |
|
|
1.6 |
|
|
|
|
|
Exercisable, end of period |
|
|
5,244,405 |
|
|
|
73.59 |
|
|
1.6 |
|
|
|
|
|
Stock awards
In the six months ended March 31, 2008, the Company granted 737,621 stock awards to 4,357
employees and members of the Managing Board, of which 79,133 awards were granted to the Managing
Board. Details on stock award activity and weighted average grant-date fair value for the six
months ended March 31, 2008 are as follows:
40
SIEMENS
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average |
|
|
|
|
|
|
Grant-Date Fair |
|
|
Awards |
|
Value |
Nonvested, beginning of the period |
|
|
3,270,910 |
|
|
60.58 |
Granted |
|
|
737,621 |
|
|
97.94 |
Vested |
|
|
(79,068 |
) |
|
79.03 |
Forfeited |
|
|
(313,320 |
) |
|
62.52 |
|
|
|
|
Nonvested, end of period |
|
|
3,616,143 |
|
|
67.63 |
Fair value was determined as the market price of Siemens shares less the present value of
expected dividends. Total fair value of stock awards granted in the six months ended March 31, 2008
and 2007, amounted to 72 and 83, respectively.
As of March 31, 2008, unrecognized compensation costs related to stock awards amount to 112,
which is expected to be recognized over a weighted average vesting period of 2.4 years.
Employee share purchase program
Under an employee share purchase program with compensation character, employees may purchase a
limited number of shares in the Company at preferential prices once a year. Up to a stipulated date
in the first quarter of the fiscal year, employees may order the shares, which are usually issued
in the second quarter of the fiscal year. The employee share purchase program is measured at fair
value. During the six months ended March 31, 2008 and 2007, the Company incurred compensation
expense before tax of 27 and 27, based on a preferential employee share price of 69.19 and
51.20, respectively, and a grant-date fair value of 37.20 and 20.79, respectively, per share.
13. Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
March 31, |
|
|
March 31, |
|
(shares in thousands) |
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Income from continuing operations |
|
|
565 |
|
|
|
1,286 |
|
|
|
1,643 |
|
|
|
1,907 |
|
Less: Portion attributable to minority interest |
|
|
(28 |
) |
|
|
(46 |
) |
|
|
(67 |
) |
|
|
(85 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to
shareholders of Siemens AG |
|
|
537 |
|
|
|
1,240 |
|
|
|
1,576 |
|
|
|
1,822 |
|
Plus: Effect of assumed conversion, net of tax* |
|
|
|
|
|
|
14 |
|
|
|
|
|
|
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to
shareholders of Siemens AG plus effect of assumed
conversion |
|
|
537 |
|
|
|
1,254 |
|
|
|
1,576 |
|
|
|
1,850 |
|
Weighted average shares outstandingbasic |
|
|
906,316 |
|
|
|
893,929 |
|
|
|
910,207 |
|
|
|
892,619 |
|
Effect of dilutive convertible debt securities and
share-based payment |
|
|
2,507 |
|
|
|
48,198 |
|
|
|
3,586 |
|
|
|
47,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstandingdiluted |
|
|
908,823 |
|
|
|
942,127 |
|
|
|
913,793 |
|
|
|
940,157 |
|
Basic earnings per share (from continuing operations) |
|
|
0.59 |
|
|
|
1.39 |
|
|
|
1.73 |
|
|
|
2.04 |
|
Diluted earnings per share (from continuing operations) |
|
|
0.59 |
|
|
|
1.33 |
|
|
|
1.72 |
|
|
|
1.97 |
|
|
|
|
* |
|
For additional information on the convertible debt in fiscal 2007, see the Companys
Consolidated Financial Statements as of September 30, 2007. |
14. Segment information
As of March 31, 2008, the Company has twelve reportable segments referred to as Groups
reported among the components used in Siemens financial statement presentation as described in
Note 1. The Groups are organized based on the nature of products and services provided.
Within the Operations component, Siemens has nine Groups which involve manufacturing,
industrial and commercial goods, solutions and services in areas related to Siemens origins in the
electrical business. Also included in Operations is Strategic Equity Investments (SEI), as well as
operating activities not associated with a Group, the latter of which are reported under Other
Operations. Reconciling items are discussed in Reconciliation to financial statements below.
41
SIEMENS
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
In fiscal 2006, Siemens announced portfolio changes that resulted in dissolving Com as a Group
and reportable segment. As discussed in Note 2, the primary business components of the former
operating segment Com were either already disposed of (carrier networks and MD) or still held for
disposal (enterprise networks) as of March 31, 2008. Except for Wireless Modules, currently part of
A&D, and other businesses including the former division Siemens Home and Office Communication
Devices, which is currently part of Other Operations, the historical results of Com are presented
as discontinued operations. Current and prior-year segment disclosures exclude the applicable
information included in the Companys financial statement presentation.
The historical results of the SV business are reported as discontinued operations. Beginning
in the fourth quarter of fiscal 2007, SV ceased to represent a reportable segment. Current and
prior-year segment disclosures therefore exclude the applicable information included in the
Companys financial statement presentation.
The Financing and Real Estate component includes the Groups SFS and SRE. The Eliminations,
reclassifications and Corporate Treasury component separately reports the consolidation of
transactions among Operations and Financing and Real Estate, as well as certain reclassifications
and the activities of the Companys Corporate Treasury.
The accounting policies of these components, as well as the Groups included, are generally the
same as those used for Siemens. Corporate overhead is generally not allocated to segments.
Intersegment transactions are generally based on market prices.
New orders are determined principally as the estimated revenue of accepted purchase orders and
order value changes and adjustments, excluding letters of intent.
Operations
The Managing Board is responsible for assessing the performance of the Operations Groups. The
Companys profitability measure for its Operations Groups is earnings before financing interest,
certain pension costs, and income taxes (Group profit) as determined by the Managing Board as the
chief operating decision maker (see discussion below). 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. Group profit represents a performance measure focused on
operational success excluding the effects of capital market financing issues.
Financing interest is any interest income or expense other than interest income related to
receivables from customers, from cash allocated to the Groups and interest expense on payables to
suppliers. Financing interest is excluded from Group profit because decision-making regarding
financing is typically made centrally by Corporate Treasury.
Similarly, decision-making regarding essential pension items is done centrally. As a
consequence, Group profit primarily includes only amounts related to the service cost of pension
plans, while all other regular pension related costs (including charges for the German pension
insurance association and plan administration costs) are included in the line item Corporate items,
pensions and eliminations.
Furthermore, income taxes are excluded from Group profit since tax expense is subject to legal
structures which typically do not correspond to the structure of the Operations Groups.
The Managing Board utilizes net capital employed to assess the capital intensity of the
Operations Groups. Its definition corresponds with the Group profit measure. Net capital employed
is based on total assets excluding intragroup financing receivables and intragroup investments and
tax related assets, as the corresponding positions are excluded from Group profit (asset-based
adjustments). The remaining assets are reduced by non-interest-bearing liabilities other than tax
related liabilities (e.g. trade payables) and provisions (liability-based adjustments) to derive
net capital employed. The reconciliation of total assets to net capital employed is presented
below.
Other Operations primarily refers to operating activities not associated with a Group, as well
as to assets recently acquired as part of acquisitions for which the allocation to the Groups are
not yet finalized.
Reconciliation to financial statements
42
SIEMENS
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
Reconciliation to financial statements includes items which are excluded from the definition
of Group profit as well as costs of corporate headquarters.
Corporate items includes corporate charges such as personnel costs for corporate headquarters,
the results of corporate-related derivative activities, as well as corporate projects and
non-operating investments. Pensions includes the Companys pension related income (expenses) not
allocated to the Groups. Eliminations represents the consolidation of transactions within the
Operations component.
In the six months ended March 31, 2008, Corporate items, pensions and eliminations in the
column Group profit includes (820) related to corporate items, as well as 27 and 1 related to
pensions and eliminations, respectively. Included in the amount of (820) above is a total of
(241) for outside advisors engaged in connection with investigations into alleged violations of
anti-corruption laws and related matters as well as remediation activities (see Note 4 for
additional information). In the six months ended March 31, 2007, Corporate items, pensions and
eliminations in the column Group profit includes (834) related to corporate items, as well as 19
and (5) related to pensions and eliminations, respectively. Included in the amount of (834) above
is a (423) impact related to a fine imposed by the European Commission in connection with an
antitrust investigation involving suppliers of high-voltage gas-isolated switching systems in the
power transmission and distribution industry between 1988 and 2004 (see Note 4 for additional
information ).
Other interest expense of Operations relates primarily to interest paid on debt and corporate
financing transactions through Corporate Treasury.
The following table reconciles total assets of the Operations component to net capital
employed of the Operations Groups as disclosed in Segment Information according to the above
definition:
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
September 30, |
|
|
|
2008 |
|
|
2007 |
|
Total assets of Operations |
|
|
92,888 |
|
|
|
87,658 |
|
Asset-based adjustments: |
|
|
|
|
|
|
|
|
Intragroup financing receivables and investments |
|
|
(21,422 |
) |
|
|
(10,834 |
) |
Tax-related assets |
|
|
(2,536 |
) |
|
|
(2,845 |
) |
Liability-based adjustments: |
|
|
|
|
|
|
|
|
Pension plans and similar commitments |
|
|
(2,325 |
) |
|
|
(2,779 |
) |
Liabilities and provisions |
|
|
(36,069 |
) |
|
|
(38,398 |
) |
Assets classified as held for disposal and associated liabilities |
|
|
(301 |
) |
|
|
(7,576 |
) |
|
|
|
|
|
|
|
Total adjustments (line item Other assets related and
miscellaneous reconciling items within the Segment information
table) |
|
|
(62,653 |
) |
|
|
(62,432 |
) |
|
|
|
|
|
|
|
Net capital employed of Corporate items, pensions and eliminations |
|
|
1,963 |
|
|
|
2,651 |
|
|
|
|
|
|
|
|
Net capital employed of Operations Groups |
|
|
32,198 |
|
|
|
27,877 |
|
|
|
|
|
|
|
|
Segment Information also discloses Free cash flow and Additions to property, plant and
equipment and intangibles. Free cash flow represents net cash provided by (used in) operating
activities less additions to intangible assets and property, plant and equipment. Amortization,
depreciation and impairments presented in Segment information includes amortization and impairments
of intangible assets other than goodwill and depreciation and impairments of property, plant and
equipment.
The following table reconciles Free cash flow of the Operations, Financing and Real Estate and
Eliminations, reclassifications and Corporate Treasury components as disclosed in Segment
Information to the corresponding consolidated amount for the Company and to net cash provided by
operating activities as presented in the Siemens Consolidated Statements of Cash Flow. In addition,
Additions to intangible assets and property, plant and equipment and Amortization, depreciation and
impairments of the Operations, Financing and Real Estate and Eliminations, reclassifications and
Corporate Treasury components as disclosed in Segment Information are reconciled to Siemens
Consolidated Statements of Cash Flow.
43
SIEMENS
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets and property, |
|
|
Net cash provided by |
|
|
Amortization, |
|
|
|
Free cash flow |
|
|
plant and equipment |
|
|
operating activities |
|
|
depreciation and |
|
|
|
(I) |
|
|
(II) |
|
|
(I) + (II) |
|
|
impairments |
|
|
|
Six
months ended March 31, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|