Edgar Filing: SIEMENS AKTIENGESELLSCHAFT

form 6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For February 2, 2005

Commission File Number: 1-15174

Siemens Aktiengesellschaft
(Translation of registrant’s name into English)

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

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


Form 20-F þ		Form 40-F o

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


Yes o		No þ

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


Yes o		No þ

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


Yes o		No þ

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

INTRODUCTION

We prepare the Interim Report as an update of our Annual Report, with a focus on the current reporting period. As such, the Interim Report should be read in conjunction with the Annual Report, which includes detailed analysis of our operations and activities.

TABLE OF CONTENTS


Key Figures			1
Management’s Discussion and Analysis			2
Consolidated Financial Statements			13
Notes			18
Quarterly Summary			28
Supervisory Board and Managing Board Changes			29
Financial Calendar			30
Signatures			31

Key Figures⁽¹⁾


		1^st quarter⁽²⁾
		2005			2004
Net income			1,001			726
(in millions of euros)

Earnings per share ⁽³⁾			1.12			0.82
(in euros)

Net cash from operating and investing activities			(2,305	)		(1,191	)
(in millions of euros)

*therein:*	*Net cash used in operating activities*		*(1,256*	)		(597	)
	*Net cash used in investing activities*		*(1,049*	)		(594	)

	*Supplemental contributions to pension trusts*		*(1,496*	)		(1,255	)
	(included in net cash used in operating activities)

New orders			21,537			20,490
(in millions of euros)

Sales			18,167			18,329
(in millions of euros)


	December 31, 2004		September 30, 2004
Employees (in thousands)		434		430
Germany		164		164
International		270		266

(1)		Unaudited
(2)		October 1 — December 31, 2004 and 2003, respectively
(3)		Earnings per share — basic

MANAGEMENT’S DISCUSSION AND ANALYSIS

OVERVIEW OF FINANCIAL RESULTS FOR THE FIRST QUARTER OF FISCAL 2005

	•		Net income rose 38% compared to the first quarter a year earlier, reaching €1.001 billion or €1.12 per share.

	•		Orders of €21.537 billion were up 5% year-over-year, and sales of €18.167 billion were nearly level with the first quarter a year earlier.

	•		Net cash from operating and investing activities was a negative €2.305 billion, including €1.5 billion in supplemental cash pension contributions. Net cash also includes increases in net working capital and acquisitions aimed at future growth.

For the first quarter of fiscal 2005, ended December 31, 2004, Siemens reported net income of €1.001 billion, up 38% compared to the same quarter of fiscal 2004. Basic and diluted earnings per share rose to €1.12 and €1.08, respectively, from €0.82 and €0.78 per share a year earlier. Net income included a gain from the sale of a portion of shares held in Juniper Networks, Inc. Within our Operations Groups, Automation and Drives (A&D), Medical Solutions (Med), Power Generation (PG), Siemens VDO Automotive (SV) and Osram contributed strong earnings. In the Information and Communications business area, Communications (Com) more than offset losses in its mobile phone business with the Juniper gain, and Siemens Business Services (SBS) reported a loss in a weak operating environment. Results for these two Groups confirm the need for additional measures that will enable them to achieve their margin targets.

Finance and Real Estate activities contributed €137 million in income before income taxes, and Corporate Treasury activities yielded €104 million primarily from derivatives not qualifying for hedge accounting. While income taxes for the quarter for Siemens were higher than a year earlier, the effective tax rate was lower.

First-quarter orders rose 5% for Siemens, to €21.537 billion. International orders were up 7% year-over-year, compared to a 3% decline in orders in Germany. Within international orders, a decline in Europe was more than offset by growth in other regions, including a major locomotive order in China and a large power plant order in Bahrain. Sales for Siemens were €18.167 billion for the quarter, down 1% year-over-year. International sales were level with the prior year, compared to a 5% decline in Germany. Within international sales, lower revenues in Europe were more than offset by rising sales in other regions. For Siemens, the net effect of acquisitions and dispositions added four percentage points to order growth and three percentage points to sales growth, whereas currency translation effects cut two percentage points from growth in both orders and sales.

In the first quarter, Operations used €2.298 billion in net cash in operating and investing activities compared to €1.493 billion in net cash used in the same period a year earlier. The change is due primarily to increases in net working capital and cash used in acquisitions aimed at future growth. Supplemental pension plan contributions were also higher in the current period, totaling €1.496 billion compared to €1.255 billion a year earlier. Financing and Real Estate and Corporate Treasury activities used net cash of €7 million compared to net cash provided of €302 million a year earlier. In aggregate, operating and investing activities for Siemens used net cash of €2.305 billion in the first quarter, compared to net cash used of €1.191 billion in the prior-year period.

RESULTS OF SIEMENS

Results of Siemens — First quarter of fiscal 2005 compared to first quarter of fiscal 2004

The following discussion presents selected information for Siemens for the first quarter:


	2005		2004
	(€ in millions)
New orders		21,537		20,490
New orders in Germany		4,492		4,614
International orders		17,045		15,876
Sales		18,167		18,329
Sales in Germany		4,171		4,370
International sales		13,996		13,959

Orders for Siemens increased 5% to €21.537 billion compared to €20.490 billion in the prior year, primarily on the strength of international business. Sales for Siemens in the first quarter of fiscal 2005 were €18.167 billion, nearly level with €18.329 billion in the same period a year earlier. On a comparable basis, excluding the net effect of acquisitions and dispositions and currency translation effects, orders were up 3% and sales declined 2% year-over-year.

In Germany, sales of €4.171 billion and orders of €4.492 billion came in 5% and 3% lower, respectively, than the prior-year period. International sales remained stable, at €13.996 billion, while international orders increased 7%, to €17.045 billion. China was a key source of international growth. Sales in China were up 3% year-over-year, to €645 million, and orders surged 56%, to €1.109 billion, including a major order for new locomotive engines. This in turn kept first-quarter sales for the broader Asia-Pacific region nearly level with the prior year, at €2.014 billion, while sending first-quarter Asia-Pacific orders up 30% year-over-year, to €2.893 billion. The U.S. was another strong driver of international growth. Despite significant negative currency translation effects, U.S. sales in the first quarter rose 11% to €3.402 billion, while orders climbed 23% year-over-year, to €3.729 billion. In Europe outside Germany, sales and orders were €6.246 billion and €6.845 billion, respectively, lower than in the prior year.


	2005			2004
	(€ in millions)
Gross profit on sales		5,603			5,458
as percentage of sales		30.8	%		29.8	%

Gross profit as a percentage of sales in the first quarter of fiscal 2005 increased to 30.8% from 29.8% a year earlier. A majority of the Groups in Operations improved their gross profit year-over-year, led by A&D, Logistics and Assembly Systems (L&A) and Industrial Solutions and Services (I&S). The gross profit improvement at A&D was due to increased productivity and higher capacity utilization in the current quarter. The gross profit improvement at L&A was mainly attributable to significant positive effects from foreign exchange derivatives not qualifying for hedge accounting in the current quarter, whereas the prior year included contract charges. I&S’ gross profit benefited from the Group’s entry into the water systems market via its USFilter acquisition in the fourth quarter of fiscal 2004. These gross profit improvements more than offset a volume-driven decline in gross profit at Com.


	2005			2004
	(€ in millions)
Research and development expenses		(1,229	)		(1,246	)
as percentage of sales		6.8	%		6.8	%
Marketing, selling and general administrative expenses		(3,519	)		(3,350	)
as percentage of sales		19.4	%		18.3	%
Other operating income (expense), net		17			99
Income from investments in other companies, net		144			105
Income (expense) from financial assets and marketable securities, net		299			(38	)
Interest expense of Operations, net		(14	)		(1	)
Other interest income (expense), net		74			52

Research and development expenses were nearly unchanged at 6.8% of sales. Marketing, selling and general administrative expenses rose to 19.4% of sales, compared to 18.3% in the prior-year period, mainly due

to higher expenses at I&S, Com, and SBS. Significant drivers for the mentioned increases include the rise at I&S primarily from the USFilter acquisition and new outsourcing contracts at SBS. Other operating income (expense), net was €17 million in the first quarter, compared to €99 million a year earlier. The prior-year period included gains from dispositions, particularly at Med. Income from investments in other companies, net was €144 million, up from €105 million in the same period a year earlier. Income (expense) from financial assets and marketable securities, net was €299 million compared to a negative €38 million in the prior-year period, due primarily to the €208 million Juniper gain at Com.


	2005			2004
	(€ in millions)
Income before income taxes		1,375			1,079
Income taxes		(336	)		(320	)
as percentage of income before income taxes		24	%		30	%
Net income		1,001			726

The effective tax rate on income in the first quarter of fiscal 2005 was 24%, compared to 30% in the first quarter a year earlier.

SEGMENT INFORMATION ANALYSIS

Operations

Information and Communications

Communications (Com)


	First quarter
							% Change
(€ in millions)	2005			2004			Actual			Comparable*
Group profit		240			174			38	%
Group profit margin		5.7	%		3.8	%

Sales		4,243			4,567			(7	)%		(6	)%
New orders		4,670			4,779			(2	)%		(2	)%

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

At the beginning of the first quarter of fiscal 2005, Siemens combined its Information and Communication Networks (ICN) and Information and Communication Mobile (ICM) Groups into a single Group, called Communications (Com). Prior-year results have been recast into the new structure for purposes of comparison. In the first quarter, Com had sales of €4.243 billion and orders of €4.670 billion compared to €4.567 billion and €4.779 billion, respectively, a year earlier. Group profit of €240 million at Com was due primarily to a gain of €208 million from sales of a portion of its shares in Juniper Networks, Inc. The Mobile Devices business (formerly Mobile Phones) saw sales drop to €1.170 billion from €1.486 billion year-over-year, and lost €143 million compared to a profit of €64 million a year earlier. Unit volume in the Christmas quarter was 13.5 million handsets, down from 15.2 million in the prior-year period, and average selling price also declined year-over-year, from €98 to €86.

Siemens Business Services (SBS)


	First quarter
							% Change
(€ in millions)	2005			2004			Actual			Comparable*
Group profit		(25	)		44
Group profit margin		(2.0	)%		3.6	%

Sales		1,256			1,210			4	%		(2	)%
New orders		1,850			1,399			32	%		15	%

Excluding currency translation effects of (1)% on sales and orders and portfolio effects of 7% and 18% on sales and orders, respectively.

SBS took in sharply higher orders of €1.850 billion in the first quarter, primarily due to long-term outsourcing contracts partly involving acquisitions. Sales of €1.256 billion for the quarter included a new outsourcing contract with the BBC in the U.K. The change in Group profit year-over-year was due primarily to an unfavorable revenue mix and severance charges.

Automation and Control

Automation and Drives (A&D)


	First quarter
							% Change
(€ in millions)	2005			2004			Actual			Comparable*
Group profit		262			221			19	%
Group profit margin		12.1	%		10.8	%

Sales		2,157			2,050			5	%		7	%
New orders		2,433			2,200			11	%		12	%

Excluding currency translation effects of (3)% and (2)% on sales and orders, respectively, and portfolio effects of 1% on sales and orders.

A&D led all Groups with €262 million in first-quarter Group profit. Sales increased 5% to €2.157 billion. Sales growth was broad-based among A&D’s divisions and also balanced between the Group’s domestic and international markets. First-quarter orders rose 11% to €2.433 billion, as A&D continued to augment its established business in Europe and the U.S. with fast growth in the Asia-Pacific region.

Industrial Solutions and Services (I&S)


	First quarter
							% Change
(€ in millions)	2005			2004			Actual			Comparable*
Group profit		20			15			33	%
Group profit margin		1.7	%		1.5	%

Sales		1,183			997			19	%		5	%
New orders		1,466			1,129			30	%		17	%

Excluding currency translation effects of (3)% on sales and orders and portfolio effects of 17% and 16% on sales and orders, respectively.

I&S posted first-quarter Group profit of €20 million, up from €15 million a year earlier. Earnings in the current period benefited from the Group’s entry into the water systems market via its USFilter acquisition in the fourth quarter of fiscal 2004. The acquisition also enabled I&S to show substantial increases in first-quarter sales and orders, which rose to €1.183 billion and €1.466 billion, respectively.

Logistics and Assembly Systems (L&A)


	First quarter
							% Change
(€ in millions)	2005			2004			Actual			Comparable*
Group profit		38			(37	)
Group profit margin		6.6	%		(6.8	)%

Sales		579			542			7	%		12	%
New orders		592			861			(31	)%		(28	)%

Excluding currency translation effects of (4)% and (2)% on sales and orders, respectively, and portfolio effects of (1)% on sales and orders.

L&A’s first-quarter orders were €592 million, below the level of the prior-year period, which included a large order in the Middle East. First-quarter sales rose 7%, to €579 million. Group profit of €38 million included significant positive effects from foreign exchange derivatives not qualifying for hedge accounting. The Group anticipates offsetting effects in coming quarters. For comparison, the prior-year quarter included €33 million in contract charges.

Siemens Building Technologies (SBT)


	First quarter
							% Change
(€ in millions)	2005			2004			Actual			Comparable*
Group profit		49			39			26	%
Group profit margin		4.9	%		3.8	%

Sales		1,010			1,040			(3	)%		0	%
New orders		1,088			1,105			(2	)%		1	%

Excluding currency translation effects.

SBT posted Group profit of €49 million, up from €39 million in the first quarter a year earlier, due to a gain on the sale of an investment and improvements in the Group’s cost position. Sales and orders of €1.010 billion and €1.088 billion, respectively, were stable year-over-year on a comparable basis.

Power

Power Generation (PG)


	First quarter
							% Change
(€ in millions)	2005			2004			Actual			Comparable*
Group profit		214			245			(13	)%
Group profit margin		13.6	%		12.9	%

Sales		1,578			1,902			(17	)%		(17	)%
New orders		2,485			2,676			(7	)%		(9	)%

Excluding currency translation effects of (2)% on sales and orders and portfolio effects of 2% and 4% on sales and orders, respectively.

Orders at PG were €2.485 billion, including a major order in Bahrain and the first large order for PG’s new Wind Power division following its acquisition of Bonus Energy A/S. A year earlier, first-quarter orders included an exceptionally large order in Finland. Sales of €1.578 billion in the first quarter came in lower than prior-year sales of €1.902 billion. PG’s Group profit of €214 million included €29 million in cancellation gains and a significant earnings contribution from its services business. For comparison, Group profit a year earlier was €245 million.

Power Transmission and Distribution (PTD)


	First quarter
							% Change
(€ in millions)	2005			2004			Actual			Comparable*
Group profit		52			51			2	%
Group profit margin		6.2	%		6.2	%

Sales		834			820			2	%		(3	)%
New orders		1,093			1,020			7	%		5	%

Excluding currency translation effects of (3)% and (4)% on sales and orders, respectively, and portfolio effects of 8% and 6% on sales and orders, respectively.

PTD posted Group profit of €52 million in the first quarter, including a positive contribution from the Group’s acquisition of Trench Electric Holding between the periods under review. This acquisition also positively influenced sales and orders, which rose to €834 million and €1.093 billion, respectively.

Transportation

Transportation Systems (TS)


	First quarter
							% Change
(€ in millions)	2005			2004			Actual			Comparable*
Group profit		20			32			(38	)%
Group profit margin		2.0	%		3.1	%

Sales		1,014			1,049			(3	)%		0	%
New orders		1,230			1,020			21	%		26	%

Excluding currency translation effects of (1)% on sales and orders and portfolio effects of (2)% and (4)% on sales and orders, respectively.

TS posted Group profit of €20 million in the first quarter compared to €32 million in the same period a year earlier. Both periods included charges in the Group’s rolling stock business, at a significantly lower level than in intervening quarters. Sales of €1.014 billion came in lower than in the first quarter a year earlier, due primarily to sharply reduced investment in rail projects in Germany. TS responded by winning significant new orders internationally, including major contracts in China, the U.K. and Vietnam. As a result, first-quarter orders rose 21% year-over-year, to €1.230 billion.

Siemens VDO Automotive (SV)


	First quarter
							% Change
(€ in millions)	2005			2004			Actual			Comparable*
Group profit		144			100			44	%
Group profit margin		6.3	%		4.9	%

Sales		2,285			2,039			12	%		3	%
New orders		2,294			2,039			13	%		4	%

Excluding currency translation effects of (2)% on sales and orders and portfolio effects of 11% on sales and orders.

SV’s first-quarter sales and orders reached €2.285 billion and €2.294 billion, respectively. Growth was driven by acquisitions, primarily an automotive electronics unit in the U.S. With a larger revenue base and more favorable revenue mix, SV was able to increase Group profit to €144 million from €100 million in the same period a year earlier.

Medical

Medical Solutions (Med)


	First quarter
							% Change
(€ in millions)	2005			2004			Actual			Comparable*
Group profit		215			327			(34	)%
Group profit margin		13.0	%		19.8	%

Sales		1,656			1,648			0	%		5	%
New orders		2,030			1,891			7	%		12	%

Excluding currency translation effects.

Med delivered Group profit of €215 million, up slightly year-over-year excluding portfolio transactions that added €116 million to first-quarter Group profit a year earlier. Sales were level year-over-year while orders rose 7%, to €2.030 billion, on strength in Med’s imaging systems business. Both business volume and earnings were adversely affected by currency effects.

Lighting

Osram


	First quarter
							% Change
(€ in millions)	2005			2004			Actual			Comparable*
Group profit		120			109			10	%
Group profit margin		11.1	%		10.2	%

Sales		1,083			1,073			1	%		5	%
New orders		1,083			1,073			1	%		5	%

Excluding currency translation effects.

Osram increased first-quarter Group profit 10%, to €120 million, as higher capacity utilization helped raise the Group’s earnings margin nearly a full percentage point year-over-year. Osram continued to expand internationally, particularly in Asia-Pacific, increasing first-quarter revenues to €1.083 billion.

Other Operations

Other Operations consist of centrally held equity investments and other operating businesses that are not related to a Group. Equity earnings from joint ventures, particularly BSH Bosch und Siemens Hausgeräte GmbH, were the primary contributor to first-quarter earnings from Other Operations, which increased to €84 million from €41 million in the same period a year earlier.

Corporate items, pensions and eliminations

Corporate items, pensions and eliminations improved to a negative €271 million in the first quarter from a negative €357 million in the same period a year earlier. Corporate items totaled a negative €146 million compared to a negative €174 million in the prior-year period. Centrally carried pension expense also was lower year-over-year. This was due primarily to supplemental pension funding, which increased pension plan assets and expected returns, and also to lower amortization of unrecognized net losses in the current quarter compared to the prior-year period.

Financing and Real Estate

Siemens Financial Services (SFS)


	First quarter
(€ in millions)	2005		2004		% Change
Income before income taxes		99		57		74	%

	Dec. 31,		Sept. 30,
	2004		2004
Total assets		9,109		9,055		1	%

Income before income taxes at SFS was €99 million compared to €57 million in the first quarter a year earlier, including higher earnings in the Group’s Equipment and Sales Financing division and a gain on the sale of an investment. In contrast, SFS took higher provisions against receivables in the first quarter a year earlier. Assets rose slightly compared to the end of fiscal 2004, despite negative currency translation effects.

Siemens Real Estate (SRE)


	First quarter
(€ in millions)	2005		2004		% Change
Income before income taxes		38		54		(30	)%

Sales		384		385		0	%

	Dec. 31,		Sept. 30,
	2004		2004
Total assets		3,504		3,455		1	%

Income before income taxes at SRE was €38 million compared to €54 million in the first quarter a year earlier, due in part to lower occupancy rates.

Eliminations, reclassifications and Corporate Treasury

Income before income taxes from Eliminations, reclassifications and Corporate Treasury was €104 million compared to a negative €2 million in the same period a year earlier. The difference was due primarily to significantly higher positive effects from derivatives not qualifying for hedge accounting, related mainly to management of interest rate risk in both euros and U.S. dollars.

LIQUIDITY, CAPITAL RESOURCES AND CAPITAL REQUIREMENTS

Cash Flow — First three months of fiscal 2005 compared to first three months of fiscal 2004


	First quarter
	2005			2004
	(€ in millions)
Cash and cash equivalents at beginning of period		12,190			12,149
Cash and cash equivalents at end of period		10,482			10,342

Net decrease in cash and cash equivalents		(1,708	)		(1,807	)


	Operations						Other*						Siemens
	First quarter
	2005			2004			2005			2004			2005			2004
	(€ in millions)
Net cash provided by (used in):
Operating activities		(1,625	)		(1,177	)		369			580			(1,256	)		(597	)
Investing activities		(673	)		(316	)		(376	)		(278	)		(1,049	)		(594	)
Financing activities														704			(474	)
Effect of exchange rates on cash and cash equivalents														(107	)		(142	)

Net decrease in cash and cash equivalents														(1,708	)		(1,807	)

incl. SFS, SRE and Corporate Treasury

Net cash used in operating activities for Siemens in the first three months of fiscal 2005 was €1.256 billion compared to €597 million in fiscal 2004. Net working capital within Operations used cash of €1.132 billion in the first quarter of fiscal 2005, compared to cash used of €961 million in the same period a year earlier. The main driver in the current fiscal quarter was an increase in inventory, primarily at Com, in part due to the counter effect attributable to lower sales compared to the prior period. Cash outflows in the current period also reflect a significant decrease in accounts payable. Net cash in the prior-year period include positive effects from Corporate Treasury, primarily related to intracompany financing. Both periods include supplemental cash contributions to Siemens’ pension plans, totaling €1.496 billion in the current quarter and €1.255 billion in the prior-year period.

Net cash used in investing activities in the first three months of fiscal 2005 was €1.049 billion compared to €594 million a year earlier. The change is due primarily to €518 million in cash outflows for acquisitions in fiscal 2005, including Bonus Energy A/S at PG. In the current fiscal quarter, cash proceeds resulted mainly from Com’s sale of a portion of its shares in Juniper Networks, Inc. while cash outflows included higher expenditures for intangible assets and property, plant and equipment. In the prior-year period, sales and dispositions of businesses included net proceeds from the sale of Med’s Life Support System business. These proceeds less expected taxes were then contributed to the joint venture Dräger Medical AG & Co. KGaA (Dräger Medical). This transaction is included in purchases of investments for the prior year.

Net cash provided by financing activities in the first three months of fiscal 2005 was €704 million compared to cash used of €474 million in the prior-year period. The change is primarily due to proceeds from the issuance of short-term debt in the current fiscal quarter.

Pension Plan Funding

At the end of the first three months of fiscal 2005, the combined funding status of Siemens’ principal pension plans showed an underfunding of €1.0 billion, compared to an underfunding of €3.1 billion at the end of fiscal 2004. The improvement was due to supplemental and regular contributions as well as a higher-than-expected actual return on plan assets in the first quarter.

The fair value of plan assets of Siemens’ principal funded pension plans on December 31, 2004 was €19.6 billion, compared to €17.7 billion on September 30, 2004.

In the first three months of fiscal 2005, supplemental cash contributions totaling €1.496 billion included €1.380 billion contributed to domestic pension plans and €116 million to pension plans in the U.S. Regular employer contributions amounted to €199 million compared to €275 million in the prior-year quarter. Supplemental contributions in the prior year amounted to €1.255 billion in cash, and were also made during the first quarter.

The estimated projected benefit obligation (PBO) for Siemens’ principal pension plans, which takes into account future compensation increases, amounted to €20.6 billion on December 31, 2004. This was approximately €200 million lower than the PBO of €20.8 million on September 30, 2004, as currency translation effects more than offset the net of pension service and interest costs less benefits paid during the quarter.

For more information on Siemens’ pension plans, see “Notes to Consolidated Financial Statements.”

EVA PERFORMANCE

Siemens ties a portion of its executive incentive compensation to achieving economic value added (EVA) targets. EVA measures the profitability of a business (using Group profit for the Operations Groups and income before income taxes for the Financing and Real Estate businesses as a base) against the additional cost of capital used to run a business (using Net capital employed for the Operations Groups and risk-adjusted equity for the Financing and Real Estate businesses as a base). A positive EVA means that a business has earned more than its cost of capital, whereas a negative EVA means that a business has earned less than its cost of capital. Depending on the EVA development year-over-year, a business is defined as value-creating or value-destroying. Other companies that use EVA may define and calculate EVA differently.

Beginning in fiscal 2005, Siemens adjusted its calculation of Economic Value Added (EVA), in particular the weighted average cost of capital (WACC) for our Operations Groups, to better correspond to the current operating environment. On a consistent calculation basis, EVA for Siemens was significantly improved in the first quarter primarily due to substantially higher earnings.

OUTLOOK

Depending on currency exchange rate developments, we expect higher sales growth in fiscal 2005 compared to the prior fiscal year. With regard to earnings, we expect that our Groups with strong margins will continue on their successful paths. I&S, L&A and SBT are moving toward their respective margin targets, and we anticipate that TS will return to profitability for the full year. Earnings for Com and SBS are expected to be influenced by non-operating effects arising from, among other things, strategic reorientation of business activities. Nevertheless we are directing all our efforts toward increasing comparable net income year-over-year. Comparable net income in fiscal 2004 was €3.002 billion (net income of €3.405 billion, excluding a pretax gain of €590 million on sale of Infineon shares plus related €246 million reversal of deferred tax liability, less a goodwill impairment of €433 million).

SUBSEQUENT EVENT

During the first quarter, Siemens made a tender offer to acquire a majority interest in VA Technologie AG of Austria (“VA Tech”). Following the close of the first quarter, Siemens revised the terms of its offer and made it conditional on acquiring at least 90% of VA Tech shares.

This interim report contains forward-looking statements and information — that is, statements related to future, not past, events. These statements may be identified by words as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning. Such statements are based on

our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect its operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens 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, 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 and various other factors. More detailed information about certain of these factors is contained in Siemens’ filings with the SEC, which are available on the Siemens website, www.siemens.com and on the SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as anticipated, believed, estimated, expected, intended, planned 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. Throughout this interim report, whenever reference is made to our Company’s website, such reference does not incorporate information from the website by reference into this interim report.

SIEMENS AG

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the three months ended December 31, 2004 and 2003
(in millions of €, per share amounts in €)


							Eliminations,
							reclassifications and												Financing and Real
	Siemens						Corporate Treasury						Operations						Estate
	2005			2004			2005			2004			2005			2004			2005			2004
Net sales		18,167			18,329			(388	)		(386	)		18,034			18,200			521			515
Cost of sales		(12,564	)		(12,871	)		388			386			(12,541	)		(12,861	)		(411	)		(396	)

Gross profit on sales		5,603			5,458			—			—			5,493			5,339			110			119
Research and development expenses		(1,229	)		(1,246	)		—			—			(1,229	)		(1,246	)		—			—
Marketing, selling and general administrative expenses		(3,519	)		(3,350	)		(1	)		(1	)		(3,445	)		(3,285	)		(73	)		(64	)
Other operating income (expense), net		17			99			(25	)		(18	)		11			89			31			28
Income from investments in other companies, net		144			105			—			—			115			92			29			13
Income (expense) from financial assets and marketable securities, net		299			(38	)		69			(42	)		231			16			(1	)		(12	)
Interest expense of Operations, net		(14	)		(1	)		—			—			(14	)		(1	)		—			—
Other interest income (expense), net		74			52			61			59			(28	)		(34	)		41			27

Income (loss) before income taxes		1,375			1,079			104			(2	)		1,134			970			137			111
Income taxes⁽¹⁾		(336	)		(320	)		(25	)		1			(277	)		(288	)		(34	)		(33	)
Minority interest		(38	)		(33	)		—			—			(38	)		(33	)		—			—

Net income (loss)		1,001			726			79			(1	)		819			649			103			78

Basic earnings per share		1.12			0.82
Diluted earnings per share		1.08			0.78

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.

The accompanying notes are an integral part of these consolidated financial statements.

SIEMENS AG

CONSOLIDATED BALANCE SHEETS (unaudited)
As of December 31, 2004 and September 30, 2004
(in millions of €)


							Eliminations,
							reclassifications and										Financing and Real
	Siemens						Corporate Treasury						Operations				Estate
	12/31/04			9/30/04			12/31/04			9/30/04			12/31/04		9/30/04		12/31/04		9/30/04
ASSETS
Current assets
Cash and cash equivalents		10,482			12,190			9,706			11,251			728		908		48		31
Marketable securities		1,759			1,386			1			8			1,751		1,361		7		17
Accounts receivable, net		15,291			15,470			(7	)		(8	)		11,035		11,275		4,263		4,203
Intracompany receivables		—			—			(9,357	)		(12,257	)		9,339		12,251		18		6
Inventories, net		11,850			11,358			(2	)		(2	)		11,799		11,295		53		65
Deferred income taxes		1,134			1,144			100			61			965		1,018		69		65
Other current assets		5,130			4,398			815			710			3,286		2,793		1,029		895

Total current assets		45,646			45,946			1,256			(237	)		38,903		40,901		5,487		5,282

Long-term investments		3,855			4,122			—			—			3,530		3,790		325		332
Goodwill		6,479			6,476			—			—			6,399		6,394		80		82
Other intangible assets, net		2,317			2,514			—			—			2,306		2,501		11		13
Property, plant and equipment, net		10,506			10,683			—			1			7,051		7,242		3,455		3,440
Deferred income taxes		4,744			4,811			1,160			1,133			3,505		3,598		79		80
Other assets		4,862			4,966			41			44			2,029		2,217		2,792		2,705
Other intracompany receivables		—			—			(1,307	)		(1,284	)		1,307		1,284		—		—

Total assets		78,409			79,518			1,150			(343	)		65,030		67,927		12,229		11,934

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term debt and current maturities of long-term debt		2,256			1,434			1,477			850			617		451		162		133
Accounts payable		8,819			9,326			(8	)		(3	)		8,643		9,109		184		220
Intracompany liabilities		—			—			(6,806	)		(7,449	)		677		1,703		6,129		5,746
Accrued liabilities		9,215			9,240			124			6			8,972		9,055		119		179
Deferred income taxes		1,665			1,522			(180	)		(282	)		1,575		1,528		270		276
Other current liabilities		11,763			11,850			401			452			11,036		11,173		326		225

Total current liabilities		33,718			33,372			(4,992	)		(6,426	)		31,520		33,019		7,190		6,779

Long-term debt		9,712			9,785			8,467			8,538			689		750		556		497
Pension plans and similar commitments		2,878			4,392			—			—			2,878		4,392		—		—
Deferred income taxes		508			569			180			184			217		274		111		111
Other accruals and provisions		3,748			4,016			25			25			3,393		3,586		330		405
Other intracompany liabilities		—			—			(2,530	)		(2,664	)		391		457		2,139		2,207

		50,564			52,134			1,150			(343	)		39,088		42,478		10,326		9,999

Minority interests		533			529			—			—			533		529		—		—
Shareholders’ equity
Common stock, no par value
Authorized: 1,113,290,106 and 1,113,285,711 shares, respectively
Issued: 891,080,106 and 891,075,711 shares, respectively		2,673			2,673
Additional paid-in capital		5,129			5,121
Retained earnings		26,448			25,447
Accumulated other comprehensive income (loss)		(6,846	)		(6,386	)
Treasury stock, at cost 1,503,241 and 250 shares, respectively		(92	)		—

Total shareholders’ equity		27,312			26,855			—			—			25,409		24,920		1,903		1,935

Total liabilities and shareholders’ equity		78,409			79,518			1,150			(343	)		65,030		67,927		12,229		11,934

The accompanying notes are an integral part of these consolidated financial statements.

SIEMENS AG

CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited)
For the three months ended December 31, 2004 and 2003
(in millions of €)


							Eliminations,
							reclassifications and												Financing and Real
	Siemens						Corporate Treasury						Operations						Estate
	2005			2004			2005			2004			2005			2004			2005			2004
Cash flows from operating activities
Net income (loss)		1,001			726			79			(1	)		819			649			103			78
Adjustments to reconcile net income to cash provided
Minority interest		38			33			—			—			38			33			—			—
Amortization, depreciation and impairments		667			699			—			—			577			601			90			98
Deferred taxes		77			113			6			—			63			102			8			11
Losses (gains) on sales and disposals of businesses and real estate, net, and gain from issuance of subsidiary and associated company stock		(4	)		(113	)		—			—			2			(103	)		(6	)		(10	)
Losses (gains) on sales of investments, net		(8	)		3			—			—			(8	)		3			—			—
(Gains) on sales and impairments of marketable securities, net		(228	)		(10	)		—			—			(228	)		(10	)		—			—
Loss (income) from equity investees, net of dividends received		(110	)		(95	)		—			—			(99	)		(96	)		(11	)		1
Change in current assets and liabilities
(Increase) decrease in inventories, net		(672	)		(250	)		—			—			(683	)		(250	)		11			—
(Increase) decrease in accounts receivable, net		135			(221	)		32			(41	)		83			(183	)		20			3
Increase (decrease) in outstanding balance of receivables sold		(67	)		(14	)		(57	)		1			(10	)		(15	)		—			—
(Increase) decrease in other current assets		(348	)		(31	)		(314	)		(27	)		75			41			(109	)		(45	)
Increase (decrease) in accounts payable		(435	)		(333	)		(6	)		(12	)		(391	)		(307	)		(38	)		(14	)
Increase (decrease) in accrued liabilities		75			209			(13	)		—			145			200			(57	)		9
Increase (decrease) in other current liabilities		261			51			540			459			(351	)		(447	)		72			39
Supplemental contributions to pension trusts		(1,496	)		(1,255	)		—			—			(1,496	)		(1,255	)		—			—
Change in other assets and liabilities		(142	)		(109	)		47			55			(161	)		(140	)		(28	)		(24	)

Net cash provided by (used in) operating activities		(1,256	)		(597	)		314			434			(1,625	)		(1,177	)		55			146
Cash flows from investing activities
Additions to intangible assets and property, plant and equipment		(619	)		(490	)		—			—			(486	)		(398	)		(133	)		(92	)
Acquisitions, net of cash acquired		(518	)		(50	)		—			—			(518	)		(50	)		—			—
Purchases of investments		(54	)		(202	)		—			—			(46	)		(200	)		(8	)		(2	)
Purchases of marketable securities		(2	)		(17	)		(1	)		(8	)		(1	)		(9	)		—			—
(Increase) decrease in receivables from financing activities		(284	)		(241	)		(80	)		(9	)		—			—			(204	)		(232	)
Increase (decrease) in outstanding balance of receivables sold by SFS		—			—			57			(1	)		—			—			(57	)		1
Proceeds from sales of long-term investments, intangibles and property, plant and equipment		115			184			—			—			84			129			31			55
Proceeds from sales and dispositions of businesses		1			193			—			—			1			193			—			—
Proceeds from sales of marketable securities		312			29			8			9			293			19			11			1

Net cash provided by (used in) investing activities		(1,049	)		(594	)		(16	)		(9	)		(673	)		(316	)		(360	)		(269	)
Cash flows from financing activities
Proceeds from issuance of common stock		—			1			—			—			—			1			—			—
Purchase of common stock		(114	)		—			—			—			(114	)		—			—			—
Proceeds from re-issuance of treasury stock		20			—			—			—			20			—			—			—
Repayment of debt		—			(265	)		—			(265	)		—			—			—			—
Change in short-term debt		824			(184	)		748			(288	)		55			111			21			(7	)
Dividends paid to minority shareholders		(26	)		(26	)		—			—			(26	)		(26	)		—			—
Intracompany financing		—			—			(2,503	)		(1,565	)		2,202			1,458			301			107

Net cash provided by (used in) financing activities		704			(474	)		(1,755	)		(2,118	)		2,137			1,544			322			100
Effect of exchange rates on cash and cash equivalents		(107	)		(142	)		(88	)		(113	)		(19	)		(27	)		—			(2	)
Net increase (decrease) in cash and cash equivalents		(1,708	)		(1,807	)		(1,545	)		(1,806	)		(180	)		24			17			(25	)
Cash and cash equivalents at beginning of period		12,190			12,149			11,251			11,345			908			725			31			79

Cash and cash equivalents at end of period		10,482			10,342			9,706			9,539			728			749			48			54

The accompanying notes are an integral part of these consolidated financial statements.

SIEMENS AG

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (unaudited)
For the three months ended December 31, 2004 and the year ended September 30, 2004
(in millions of €)


									Accumulated other comprehensive income (loss)
			Additional						Cumulative			Available-					Minimum			Treasury
	Common		paid-in			Retained			translation			for-sale		Derivative			pension			shares
	stock		capital			earnings			adjustment			securities		instruments			liability			at cost			Total
Balance at October 1, 2003		2,673		5,073			23,020			(827	)		83		83			(6,390	)		—			23,715

Net income		—		—			3,405			—			—		—			—			—			3,405
Change in currency translation adjustment		—		—			—			(249	)		—		—			—			—			(249	)
Change in unrealized gains and losses		—		—			—			—			77		(28	)		865			—			914

Total comprehensive income		—		—			3,405			(249	)		77		(28	)		865			—			4,070
Dividends paid		—		—			(978	)		—			—		—			—			—			(978	)
Issuance of common stock and stock-based compensation		—		50			—			—			—		—			—			—			50
Purchase of common stock		—		—			—			—			—		—			—			(106	)		(106	)
Re-issuance of treasury stock		—		(2	)		—			—			—		—			—			106			104

Balance at September 30, 2004		2,673		5,121			25,447			(1,076	)		160		55			(5,525	)		—			26,855

Net income		—		—			1,001			—			—		—			—			—			1,001
Change in currency translation adjustment		—		—			—			(485	)		—		—			—			—			(485	)
Change in unrealized gains		—		—			—			—			3		22			—			—			25

Total comprehensive income		—		—			1,001			(485	)		3		22			—			—			541
Dividends paid		—		—			—			—			—		—			—			—			—
Issuance of common stock and stock-based compensation		—		10			—			—			—		—			—			—			10
Purchase of common stock		—		—			—			—			—		—			—			(114	)		(114	)
Re-issuance of treasury stock		—		(2	)		—			—			—		—			—			22			20

Balance at December 31, 2004		2,673		5,129			26,448			(1,561	)		163		77			(5,525	)		(92	)		27,312

The accompanying notes are an integral part of these consolidated financial statements.

SIEMENS AG

SEGMENT INFORMATION (unaudited)
As of and for three months ended December 31, 2004 and 2003 and as of September 30, 2004
(in millions of €)


											Intersegment
	New orders						External sales				sales						Total sales						Group profit⁽¹⁾
	2005			2004			2005		2004		2005			2004			2005			2004			2005			2004
Operations Groups
Communications (Com)⁽⁷⁾		4,670			4,779			4,140		4,486		103			81			4,243			4,567			240			174
Siemens Business Services (SBS)		1,850			1,399			946		946		310			264			1,256			1,210			(25	)		44
Automation and Drives (A&D)		2,433			2,200			1,852		1,732		305			318			2,157			2,050			262			221
Industrial Solutions and Services (I&S)		1,466			1,129			954		746		229			251			1,183			997			20			15
Logistics and Assembly Systems (L&A)		592			861			538		512		41			30			579			542			38			(37	)
Siemens Building Technologies (SBT)		1,088			1,105			989		1,025		21			15			1,010			1,040			49			39
Power Generation (PG)		2,485			2,676			1,567		1,900		11			2			1,578			1,902			214			245
Power Transmission and Distribution (PTD)		1,093			1,020			778		750		56			70			834			820			52			51
Transportation Systems (TS)		1,230			1,020			989		1,043		25			6			1,014			1,049			20			32
Siemens VDO Automotive (SV)		2,294			2,039			2,281		2,037		4			2			2,285			2,039			144			100
Medical Solutions (Med)		2,030			1,891			1,639		1,622		17			26			1,656			1,648			215			327
Osram		1,083			1,073			1,065		1,052		18			21			1,083			1,073			120			109
Other Operations⁽⁵⁾		466			440			228		278		241			154			469			432			84			41

Total Operations Groups		22,780			21,632			17,966		18,129		1,381			1,240			19,347			19,369			1,433			1,361
Reconciliation to financial statements
Corporate items, pensions and eliminations		(1,393	)		(1,659	)		12		37		(1,325	)		(1,206	)		(1,313	)		(1,169	)		(271	)		(357	)
Other interest expense		—			—			—		—		—			—			—			—			(28	)		(34	)
Other assets related reconciling items		—			—			—		—		—			—			—			—			—			—

Total Operations (for columns Group profit/Net capital employed, i.e. Income before income taxes/Total assets)		21,387			19,973			17,978		18,166		56			34			18,034			18,200			1,134			970

																							Income before income taxes
Financing and Real Estate Groups
Siemens Financial Services (SFS)		140			132			124		106		16			26			140			132			99			57
Siemens Real Estate (SRE)		384			385			65		57		319			328			384			385			38			54
Eliminations		(3	)		—			—		—		(3	)		(2	)		(3	)		(2	)		—			—

Total Financing and Real Estate		521			517			189		163		332			352			521			515			137			111

Eliminations, reclassifications and Corporate Treasury		(371	)		—			—		—		(388	)		(386	)		(388	)		(386	)		104			(2	)

Siemens		21,537			20,490			18,167		18,329		—			—			18,167			18,329			1,375			1,079

[Additional columns below]

[Continued from above table, first column(s) repeated]


							Net cash from												Amortization,
	Net capital						operating and						Capital						depreciation and
	employed⁽²⁾						investing activities						spending⁽³⁾						impairments⁽⁴⁾
	12/31/04			9/30/04			2005			2004			2005			2004			2005		2004
Operations Groups
Communications (Com)⁽⁷⁾		2,636			2,134			(319	)		94			92			75			126		143
Siemens Business Services (SBS)		734			632			(190	)		(131	)		63			35			56		55
Automation and Drives (A&D)		1,941			1,951			218			213			39			53			45		49
Industrial Solutions and Services (I&S)		948			1,003			(28	)		(32	)		12			35			19		9
Logistics and Assembly Systems (L&A)		489			537			81			(105	)		16			6			9		12
Siemens Building Technologies (SBT)		1,465			1,359			(73	)		26			67			14			24		32
Power Generation (PG)		2,364			1,997			(215	)		40			374			40			39		43
Power Transmission and Distribution (PTD)		1,167			1,162			24			59			31			12			15		15
Transportation Systems (TS)		203			49			(173	)		(48	)		15			11			12		13
Siemens VDO Automotive (SV)		3,442			3,542			198			96			106			93			96		93
Medical Solutions (Med)		3,166			3,173			6			16			56			225			47		45
Osram		1,844			2,011			204			183			51			47			64		63
Other Operations⁽⁵⁾		1,799			1,672			(184	)		(59	)		143			12			22		17

Total Operations Groups		22,198			21,222			(451	)		352			1,065			658			574		589
Reconciliation to financial statements
Corporate items, pensions and eliminations		(1,617	)		(3,116	)		(1,847	)⁽⁶⁾		(1,845	)⁽⁶⁾		(15	)		(10	)		3		12
Other interest expense		—			—			—			—			—			—			—		—
Other assets related reconciling items		44,449			49,821			—			—			—			—			—		—

Total Operations (for columns Group profit/Net capital employed, i.e. Income before income taxes/Total assets)		65,030			67,927			(2,298	)		(1,493	)		1,050			648			577		601

	Total assets
Financing and Real Estate Groups
Siemens Financial Services (SFS)		9,109			9,055			(176	)		(162	)		80			58			46		49
Siemens Real Estate (SRE)		3,504			3,455			(103	)		61			61			36			44		49
Eliminations		(384	)		(576	)		(26	)⁽⁶⁾		(22	)⁽⁶⁾		—			—			—		—

Total Financing and Real Estate		12,229			11,934			(305	)		(123	)		141			94			90		98

Eliminations, reclassifications and Corporate Treasury		1,150			(343	)		298	⁽⁶⁾		425	⁽⁶⁾		—			—			—		—

Siemens		78,409			79,518			(2,305	)		(1,191	)		1,191			742			667		699

(1)		Group profit of the Operations Groups is earnings before financing interest, certain pension costs and income taxes.
(2)		Net capital employed of the Operations Groups represents total assets less tax assets, certain accruals and non-interest bearing liabilities other than tax liabilities.
(3)		Intangible assets, property, plant and equipment, acquisitions, and investments.
(4)		Includes amortization and impairments of intangible assets, depreciation of property, plant and equipment, and write-downs of investments.
(5)		Other Operations primarily refer to certain centrally-held equity investments and other operating activities not associated with a Group.
(6)		Includes (for Eliminations within Financing and Real Estate consists of) 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.
(7)		The Groups ICN and ICM were combined into one Group named Communications (Com) as of October 1, 2004.

SIEMENS AG

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in millions of €, except where otherwise stated and per share amounts)

NOTES

Basis of presentation

The accompanying Consolidated Financial Statements present the operations of Siemens AG and its subsidiaries, (the Company or Siemens). The Consolidated Financial Statements have been prepared in accordance with United States Generally Accepted Accounting Principles (U.S. GAAP). Siemens has prepared and reported its 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 statements—The accompanying Consolidated Balance Sheet as of December 31, 2004, the Consolidated Statements of Income and Cash Flows for the three months ended December 31, 2004 and 2003, the Consolidated Statement of Changes in Shareholders’ Equity for the three months ended December 31, 2004 and the Notes to the Consolidated Financial Statements are unaudited and have been prepared for interim financial information. The interim financial statements are based on the accounting principles and practices applied in the preparation of the financial statements for the last fiscal year except as indicated below. In the opinion of management, these unaudited Consolidated Financial Statements include all adjustments of a normal and recurring nature and necessary for a fair presentation of results for the interim periods. These interim financial statements should be read in connection with the Consolidated Financial Statements included in the Company’s 2004 Annual Report. Results for the three months ended December 31, 2004, are not necessarily indicative of future results.

Financial statement presentation—The presentation of the Company’s worldwide financial data (Siemens) is accompanied by a component model 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 Company’s 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 U.S. GAAP. See also Note 14. The information disclosed in these Notes relates to Siemens unless otherwise stated.

Basis of consolidation—The Consolidated Financial Statements include the accounts of Siemens AG and all subsidiaries which are directly or indirectly controlled. Additionally, the Company consolidates variable interest entities (VIEs) for which it is deemed to be the primary beneficiary. Associated companies—companies in which Siemens has the ability to exercise significant influence over their 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.

Use of estimates—The 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.

Reclassification—The presentation of certain prior year information has been reclassified to conform to the current year presentation.

Stock-based compensation—As of October 1, 2003, the Company adopted the fair value recognition provisions of Statements of Financial Accounting Standards (SFAS) 123, Accounting for Stock-Based Compensation using the prospective method set forth in SFAS 148, Accounting for Stock-Based Compensation—Transition and Disclosure for all awards granted, modified or settled after October 1, 2003. Stock-based compensation cost is measured at the grant date at the fair value of the award based on a Black-Scholes option pricing model and is recognized as expense over the vesting period. Awards granted before October 1, 2003 continue to be accounted for under the intrinsic value based recognition and measurement provisions of APB Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations. Under APB Opinion No. 25, compensation cost, if any, is measured based on the excess of the quoted market price at the measurement date over the amount an employee must pay to acquire the stock. The following table illustrates the effect on net income and earnings per share if the fair value based method of SFAS 123 had been applied to all awards:

SIEMENS AG

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in millions of €, except where otherwise stated and per share amounts)


	Three months ended
	December 31,
	2004			2003
Net income
As reported		1,001			726
Plus: Stock-based employee compensation expense included in reported net income, net of taxes		30			36
Less: Stock-based employee compensation expense determined under fair value based accounting method, net of taxes		(29	)		(48	)

Pro forma		1,002			714

Basic earnings per share
As reported		1.12			0.82
Pro forma		1.13			0.80
Diluted earnings per share
As reported		1.08			0.78
Pro forma		1.08			0.77

See Note 12 for further information on stock-based compensation.

Recent accounting pronouncements—In December 2004, the Financial Accounting Standards Board (FASB) issued SFAS 123 (revised 2004), Share-Based Payment (SFAS 123R), which replaces SFAS 123, Accounting for Stock-Based Compensation, and supersedes Accounting Principals Board Opinion (APB) 25, Accounting for Stock Issued to Employees, and related Interpretations. SFAS 123R requires companies to recognize the cost resulting from all share-based payment transactions in the financial statements. With certain limited exceptions, the new standard establishes a grant-date fair-value-based measurement method in accounting for share-based payment transactions. Liability-classified awards are to be remeasured to fair value at each reporting date until the award is settled. Equity-classified awards are measured at grant-date fair value whereas related compensation cost is recognized based on the estimated number of instruments for which the requisite service is expected to be rendered. SFAS 123R is effective as of the beginning of the first interim reporting period that begins after June 15, 2005. For its equity-classified awards, the Company intends to apply the modified prospective transition method. Under this method, unvested equity-classified awards granted prior to the effective date of the new statement are accounted for under SFAS 123R and related costs are recognized in the income statement. The adoption of SFAS 123R, including the remeasurement from intrinsic value to fair value of liability classified awards, is not expected to have a material impact on the Company’s consolidated financial statements.

Other operating income (expense), net


	Three months ended
	December 31,
	2004			2003
Gains (losses) on sales and disposals of businesses, net		(11	)		102
Gains on sales of real estate, net		15			11
Other, net		13			(14	)

		17			99

In the three months ended December 31, 2003, Gain on sales and disposals of businesses, net includes a pre-tax gain of €100 from the Company’s sale of its Life Support Systems business to Getinge AB, Sweden.

SIEMENS AG

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in millions of €, except where otherwise stated and per share amounts)

Interest income, net


	Three months ended
	December 31,
	2004			2003
Interest income (expense) of Operations, net		(14	)		(1	)
Other interest (expense) income, net		74			52

Total interest income, net		60			51

Thereof: Interest and similar income		176			171
Thereof: Interest and similar expense		(116	)		(120	)

Interest income (expense) of Operations, net includes interest income and expense related to receivables from customers and payables to suppliers, interest on advances from customers and advanced financing of customer contracts. Other interest (expense) income, net includes all other interest amounts primarily consisting of interest relating to debt and associated hedging activities as well as interest income on corporate assets.

Inventories, net


	December 31,			September 30,
	2004			2004
Raw materials and supplies		2,263			2,282
Work in process		2,486			2,261
Costs and earnings in excess of billings on uncompleted contracts		7,162			6,650
Finished goods and products held for resale		2,958			2,777
Advances to suppliers		510			651

		15,379			14,621
Advance payments received		(3,529	)		(3,263	)

		11,850			11,358

Marketable securities

In late December 2004, the Company sold 13 million shares of its investment in Juniper Networks, Inc. (Juniper) for €263 resulting in a pre-tax gain of €208 reported in Income (expense) from financial assets and marketable securities, net. Due to the sale, approximately 12 million Juniper shares became available-for-sale securities and were written up to fair value. The increase to market value was recorded as an unrealized gain in Accumulated other comprehensive income (loss), net of income tax for the period. The Company’s remaining interest in Juniper was reclassified from Long-term investments to Marketable securities.

SIEMENS AG

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in millions of €, except where otherwise stated and per share amounts)

Goodwill

The table below presents the carrying amount of goodwill by segment:


	December 31,		September 30,
	2004		2004
Operations
Communications (Com)*		374		367
Siemens Business Services (SBS)		255		269
Automation and Drives (A&D)		376		388
Industrial Solutions and Services (I&S)		238		258
Logistics and Assembly Systems (L&A)		120		123
Siemens Building Technologies (SBT)		412		415
Power Generation (PG)		1,229		1,027
Power Transmission and Distribution (PTD)		310		320
Transportation Systems (TS)		111		111
Siemens VDO Automotive (SV)		1,524		1,524
Medical Solutions (Med)		1,375		1,514
Osram		75		78
Financing and Real Estate
Siemens Financial Services (SFS)		80		82
Siemens Real Estate (SRE)		—		—

Siemens		6,479		6,476

As of October 1, 2004, the Groups ICN and ICM were combined into one Group named Communications (Com) (see Note 14).

Goodwill increased by €3 in the three months ended December 31, 2004. The increase of €265 in connection with acquisitions and purchase accounting adjustments was offset by €(262) foreign currency translation adjustments primarily due to the strength of the Euro particularly against the U.S.$. Acquisitions and purchase accounting adjustments related to PG, Com, Osram and I&S. No goodwill was impaired or written-off in the three months ended December 31, 2004.

In the three months ended December 31, 2003, Goodwill decreased by €160 mainly due to foreign currency translation effects. The strength of the Euro particularly against the U.S.$ resulted in €(196) foreign currency translation adjustments primarily due to the Company’s businesses in the U.S. Med’s sale of its Life Support Systems business and a disposition at SBT additionally reduced goodwill by €(40). Acquisitions and purchase accounting adjustments resulted in a total increase in goodwill of €76, and were attributable to I&S, PG, Med and A&D. No goodwill was impaired or written-off in the three months ended December 31, 2003.

Other intangible assets, net


	December 31,			September 30,
	2004			2004
Software		1,869			1,880
Less: accumulated amortization		(1,012	)		(949	)

Software, net		857			931

Patents, licenses and similar rights		2,653			2,778
Less: accumulated amortization		(1,193	)		(1,195	)

Patents, licenses and similar rights, net		1,460			1,583

Other intangible assets, net		2,317			2,514

Amortization expense for the three months ended December 31, 2004 and 2003, amounted to €151 and €155, respectively.

SIEMENS AG

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in millions of €, except where otherwise stated and per share amounts)

Accrued liabilities


	December 31,		September 30,
	2004		2004
Employee related costs		2,334		2,317
Product warranties		2,103		2,096
Income and other taxes		1,359		1,384
Accrued losses on uncompleted contracts		1,035		1,061
Other		2,384		2,382

		9,215		9,240

Changes in current and non-current accruals for product warranties were as follows:


	Three months ended
	December 31,
	2004			2003
Accrual as of the beginning of the period (thereof current €2,096 and €1,830)		2,824			2,353
Amount charged to expense in the current period (additions)		181			150
Reduction due to payments in cash or in kind (usage)		(216	)		(142	)
Foreign exchange translation adjustment		(41	)		(35	)
Other changes related to existing warranties		64			64

Accrual as of the end of the period (thereof current €2,103 and €1,845)		2,812			2,390

Pension plans and similar commitments

Principal pension benefits: Components of net periodic pension cost


	Three months ended									Three months ended
	December 31, 2004									December 31, 2003
	Total			Domestic			Foreign			Total			Domestic			Foreign
Service cost		144			77			67			116			53			63
Interest cost		277			182			95			275			186			89
Expected return on plan assets		(319	)		(226	)		(93	)		(288	)		(203	)		(85	)
Amortization of:
Unrecognized prior service (benefit) cost		(3	)		(5	)		2			3			—			3
Unrecognized net losses		139			118			21			155			130			25

Net periodic pension cost		238			146			92			261			166			95

Germany		146									166
U.S.		46									54
U.K.		37									31
Other		9									10

10.

Shareholders’ equity

Capital increases

In the three months ended December 31, 2004, common stock increased by €13 thousand through the issuance of 4 thousand shares from the conditional capital as settlement to former shareholders of SNI AG.

Treasury Stock

In the three months ended December 31, 2004, Siemens repurchased a total of 1,860,994 shares at an average price of €61.19 per share for the purpose of selling them to employees. Thereof, 358,003 shares of Treasury Stock were sold to employees in the three months ended December 31, 2004 to accommodate the exercise of stock options. The majority of the remaining treasury shares are to be issued to employees at preferential prices beginning in January 2005 under a compensatory employee stock purchase plan.

SIEMENS AG

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in millions of €, except where otherwise stated and per share amounts)

11.

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:


	December 31,		September 30,
	2004		2004
Guarantees:
Credit guarantees		330		341
Guarantees of third-party performance		397		370
Other guarantees		502		525

		1,229		1,236

12.

Stock-based compensation

In fiscal 2005, the Company introduced stock awards as another type of compensation. Stock awards granted in fiscal 2005 resulted in a significant reduction in the number of stock options awarded as compared with fiscal 2004.

Stock Option Plans

In November 2004, the Supervisory Board and the Managing Board granted options to 624 key executives for 2,945,035 shares with an exercise price of €72.54 of which options for 296,270 shares were granted to the Managing Board. The options were granted under the 2001 Siemens Stock Option Plan. The exercise price of €72.54 is equal to 120% of the average opening market price of Siemens AG during the five trading days preceding the date of the stock option grant. The options are subject to a two-year vesting period, after which they may be exercised for a period of three years.

Details on option activity and weighted average exercise prices for the three months ended December 31, 2004 and 2003, respectively, are as follows:


	Three months ended					Three months ended
	December 31, 2004					December 31, 2003
				Weighted Average					Weighted Average
	Options			Exercise Price		Options			Exercise Price
Outstanding, beginning of the period		28,054,326		€	70.86		20,410,876		€	69.82
Granted		2,945,035		€	72.54		8,678,752		€	73.25
Options exercised		(358,003	)	€	54.33		(21,950	)	€	57.73
Options forfeited		(238,605	)	€	70.76		(302,226	)	€	72.12

Outstanding, end of period		30,402,753		€	71.22		28,765,452		€	70.84

Exercisable, end of period		19,050,406		€	70.12		11,136,370		€	82.84

The Company’s determination of the fair value of grants is based on a Black-Scholes option pricing model. The fair value of options granted in November 2004 amounted to €4.54 per option. Option valuation models require the input of highly subjective assumptions including the expected stock price volatility. The Company’s stock options may have characteristics that vary significantly from traded options and changes in subjective assumptions can materially affect the fair value of the option.

Stock appreciation rights

Where local regulations restrict the grants of stock options in certain jurisdictions, the Company grants stock appreciation rights to employees. In the three months ended December 31, 2004, 76,670 stock appreciation rights, which allow settlement in cash only, were granted at an exercise price of €72.54 under the same conditions as the 2001 Siemens Stock Option Plan. As of September 30, 2004, 198,850 stock appreciation rights with an weighted average exercise price of €73.25 were outstanding, resulting in 275,520 stock appreciation rights with an weighted average exercise price of €73.05 outstanding at December 31, 2004.

SIEMENS AG

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in millions of €, except where otherwise stated and per share amounts)

Stock awards

In the first quarter of fiscal 2005, the Company introduced stock awards and phantom stock as another means for providing stock-based compensation to members of the Managing Board, executive officers and other eligible employees. Stock awards are subject to a four year vesting period. Upon expiration of the vesting period, the recipient receives Siemens shares without payment of consideration. Stock awards are forfeited if the grantee’s employment with the Company terminates prior to the expiration of the vesting period. During the vesting period, grantee’s are not entitled to dividends. Stock awards may not be transferred, sold, pledged or otherwise encumbered. Stock awards may be settled in newly issued shares of common stock of Siemens AG from the authorized or the conditional capital reserved for this purpose, Treasury Stock or in cash. The settlement method will be determined by the Managing Board and the Supervisory Board.

Each fiscal year, the Company decides whether or not to grant Siemens stock awards. Siemens stock awards may be granted only once a year within thirty days following the date of publication of the business results for the previous fiscal year. The Supervisory Board decides annually after the end of each fiscal year how many stock awards to grant to the Managing Board and the Managing Board decides annually how many stock awards to grant to executive officers and eligible employees.

In the three months ended December 31, 2004, the Company granted 1,152,508 stock awards to 5,343 employees of which 24,177 awards were granted to the Managing Board. 2,083 awards forfeited in the three months ended December 31, 2004, resulting in a quarter-end balance of 1,150,425 awards.

Stock awards are accounted under the fair value recognition provisions of SFAS 123. Fair value was determined as the market price of Siemens shares less the present value of dividends expected during the 4 year vesting period which resulted in a fair value of €55.63 per award. Total fair value of stock awards granted in the three months ended December 31, 2004 amounted to €64.

Phantom stock

Where local regulations restrict the grants of stock awards in certain jurisdictions, the Company grants phantom stock to employees under the same conditions as the Siemens stock awards, except that grantees receive the share prices’ equivalent value in cash only at the end of the four year vesting period. In the three months ended December 31, 2004, 28,628 phantom stock rights were granted. No such rights forfeited resulting in a balance of 28,628 phantom stock rights as of December 31, 2004.

Employee share purchase plan

Under a compensatory employee share purchase program, employees may purchase shares in the Company at preferential prices once a year. The employee share purchase program is accounted under the fair value recognition provisions of SFAS 123. In the three months ended December 31, 2004 and 2003, the Company incurred compensation expense of €31 and €35, respectively.

SIEMENS AG

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in millions of €, except where otherwise stated and per share amounts)

13.

Earnings per share


	Three months ended
	December 31,
	2004		2003
	(shares in thousands)
Net income		1,001		726
Plus: interest on dilutive convertible debt securities		6		6

Net income plus effect of assumed conversions		1,007		732

Weighted average shares outstanding—basic		890,441		890,472
Effect of dilutive convertible debt securities and stock options		45,628		45,642

Weighted average shares outstanding—diluted		936,069		936,114
Basic earnings per share		1.12		0.82
Diluted earnings per share		1.08		0.78

14.

Segment information

As of fiscal 2005, the Company has fourteen reportable segments referred to as “Groups” (fifteen Groups prior to combining ICN and ICM to one Group named Com as of October 1, 2004, as a result of a change in the Company’s management approach. Prior-year results have been recast into the new structure for purposes of comparison). The Groups are reported among the components used in the Company’s financial statement presentation—see Note 1. The Groups are organized based on the nature of products and services provided.

Within the Operations component, Siemens has twelve Groups (thirteen Groups prior to combining ICN and ICM). Those Groups involve manufacturing, industrial and commercial goods, solutions and services in areas more or less related to Siemens origins in the electrical business. Also included in Operations are operating activities not associated with a Group, which are reported under Other Operations (see below) as well as other reconciling items discussed in Reconciliation to financial statements below.

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 Company’s 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 sales value 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 Company’s 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 includes only amounts based on service costs of pension plans. All other pension related costs,

SIEMENS AG

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in millions of €, except where otherwise stated and per share amounts)

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 also determined Net capital employed as additional information 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 intracompany financing receivables and intracompany 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. accounts payable) and certain accruals (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 and certain centrally-held equity investments (such as BSH Bosch und Siemens Hausgeräte GmbH), but excluding the equity investment in Infineon, which is not considered under an operating perspective since Siemens intends to divest its remaining interest in Infineon over time.

Reconciliation to financial statements

Reconciliation to financial statements includes items which are excluded from 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 including, up to the second quarter of fiscal 2004, the Company’s share of earnings (losses) from the equity investment in Infineon. Pensions include the Company’s pension related income (expenses) not allocated to the Groups. Eliminations represent the consolidation of transactions within the Operations component.

Corporate items, pensions and eliminations in the column Group profit consists of:


	Three months ended
	December 31,
	2004			2003
Corporate items		(146	)		(174	)
Pensions		(121	)		(181	)
Eliminations		(4	)		(2	)

		(271	)		(357	)

Other interest expense of Operations relates primarily to interest paid on debt and corporate financing transactions through Corporate Treasury.

SIEMENS AG

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in millions of €, except where otherwise stated and per share amounts)

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:


	December 31,			September 30,
	2004			2004
Total assets of Operations		65,030			67,927

Asset-based adjustments
Intracompany financing receivables and investments		(10,646	)		(13,534	)
Tax related assets		(4,781	)		(4,889	)
Liability-based adjustments
Pension plans and similar commitments		(2,878	)		(4,392	)
Accruals		(5,966	)		(6,125	)
Liabilities to third parties		(20,178	)		(20,881	)

Total adjustments (line item Other assets related reconciling items within the Segment Information table)		(44,449	)		(49,821	)
Net capital employed of Corporate items, pensions and eliminations		1,617			3,116

Net capital employed of Operations Groups		22,198			21,222

Financing and Real Estate

The Company’s performance measurement for its Financing and Real Estate Groups is Income before income taxes. In contrast to the performance measurement used for the Operations Groups, interest expense and income is an important source of revenue and expense for Financing and Real Estate.

For the three months ended December 31, 2004 and 2003, Income before income taxes at SFS includes interest revenue of €123 and €107, respectively, and interest expense of €63 and €57, respectively.

For the three months ended December 31, 2004 and 2003, Income before income taxes at SRE includes interest revenue of €1 and €2, respectively, and interest expense of €20 and €25, respectively.

Eliminations, reclassifications and Corporate Treasury

Income before income taxes consists primarily of interest income due to cash management activities, corporate finance, and certain currency and interest rate derivative instruments.

Quarterly Summary
(in € unless otherwise indicated)


	Fiscal year 2005			Fiscal year 2004
	1^st Quarter			4^th Quarter		3^rd Quarter		2^nd Quarter		1^st Quarter
Net sales (in millions of €)		18,167			20,828		18,216		17,794		18,329
Net income (in millions of €)		1,001			654		815		1,210		726
Net cash from operating and investing activities (in millions of €)		(2,305	)		609		279		3,565		(1,191	)

Key capital market data
Basic earnings per share		1.12			0.73		0.91		1.36		0.82
Diluted earnings per share		1.08			0.70		0.88		1.30		0.78
Siemens stock price ⁽¹⁾
High		62.54			61.06		65.05		68.30		64.85
Low		57.50			53.40		54.95		57.30		52.02
Period-end		62.38			59.21		59.11		60.07		63.50
Siemens stock performance on a quarterly basis (in percentage points)
Compared to DAX index		–3.47			+4.60		–6.23		–2.22		+2.96
Compared to Dow Jones STOXX index		–0.01			+1.48		–4.10		–8.75		+13.59
Number of shares issued (in millions)		891			891		891		891		891
Market capitalization (in millions of €)⁽²⁾		55,492			52,761		52,670		53,524		56,485
Credit rating of long-term debt
Standard & Poor’s		AA–			AA–		AA–		AA–		AA–
Moody’s		Aa3			Aa3		Aa3		Aa3		Aa3

⁽¹⁾		XETRA closing prices, Frankfurt.
⁽²⁾		based on shares outstanding.

Supervisory Board and Managing Board Changes

A change in the membership of the Supervisory Board was proposed and voted upon at the Annual Shareholders’ Meeting (the meeting) on January 27, 2005. Dr. Karl-Hermann Baumann retired, due to age limits stipulated by company rules, at the end of the meeting on January 27, 2005. Dr. Heinrich v. Pierer, the Company’s earlier President of the Managing Board and CEO (Chief Executive Officer), was elected as member of the Supervisory Board. At the Supervisory Board meeting held subsequently on the same day, members then voted on Dr. Heinrich v. Pierer’s election as Chairman of the Supervisory Board of Siemens AG.

Managing Board Changes

Dr. Klaus Kleinfeld was elected President of the Managing Board and CEO succeeding Dr. Heinrich v. Pierer as of January 27, 2005.

Effective October 1, 2004, Thomas Ganswindt, earlier President of ICN, was appointed full member of the Managing Board of Siemens AG and, at the same time, was elected as member of the Corporate Executive Committee.

Effective October 1, 2004, Rudi Lamprecht, earlier President of ICM, was appointed full member of the Managing Board of Siemens AG and, at the same time, was elected as member of the Corporate Executive Committee.

Siemens financial calendar*


Apr. 27, 2005		Second-quarter financial report and Semiannual Press Conference
July 28, 2005		Third-quarter financial report
Nov. 10, 2005		Preliminary figures for fiscal year/Press conference
Jan. 26, 2006		Annual Shareholders’ Meeting for fiscal 2005

* Provisional. Updates will be posted at: www.siemens.com/financial_calendar


Information resources

Telephone		+49 89 636-33032 (Press Office)
		+49 89 636-32474 (Investor Relations)
Fax		+49 89 636-32825 (Press Office)
		+49 89 636-32830 (Investor Relations)
E-mail		press@siemens.com investorrelations@siemens.com

Address
Siemens AG
Wittelsbacherplatz 2
D-80333 Munich
Federal Republic of Germany
Internet www.siemens.com

Designations used in this Report may be trademarks, the use of which by third parties for their own purposes could violate the rights of the trademark owners.

SIGNATURES

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


	SIEMENS AKTIENGESELLSCHAFT
Date: February 2, 2005	/s/ Dr. Ralf Thomas
	Name:	Dr. Ralf Thomas
	Title:	Vice President Reporting and Taxes


	/s/ Dr. Klaus Patzak
	Name:	Dr. Klaus Patzak
	Title:	Vice President and Corporate Controller

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