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

August 4, 2009

Siemens Aktiengesellschaft

(Translation of registrant’s name into English)

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

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

Form 20-F þ     Form 40-F o

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

Yes o     No þ

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

Yes o     No þ

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

Yes o     No þ

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

 

 

Table of contents

Key figures
Interim group management report
Condensed Interim Consolidated Financial Statements
Notes
Supervisory Board member and remunerations changes
Managing Board changes
Review report
Quarterly summary
Siemens financial calendar

 

 

 

 

 

Introduction

Siemens AG’s Interim Report for the Siemens Group complies with the applicable legal requirements of the German Securities Trading Act (Wertpapierhandelsgesetz — WpHG) regarding quarterly financial reports, and comprises Condensed Interim Consolidated Financial Statements and an Interim group management report in accordance with § 37x (3) WpHG. The Condensed Interim Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and its interpretations issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU). The Condensed Interim Consolidated Financial Statements also comply with IFRS as issued by the IASB. This Interim Report should be read in conjunction with our Annual Report for fiscal 2008, which includes detailed analysis of our operations and activities.

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

Key figures

Interim group management report

Overview of financial results for the third quarter of fiscal 2009
(Three months ended June 30, 2009)

	•		Siemens’ strong order backlog softened the impact of the global recession on revenue and profit. Backlog for the Sectors totaled €84.3 billion.
	•		Third-quarter revenue of €18.348 billion was 4% lower than in the prior-year quarter.
	•		Orders of €17.160 billion were well below the prior-year level, due in part to a high basis of comparison that included exceptionally large orders at Mobility. The book-to-bill ratio was 0.94.
	•		Lower revenue held back Total Sectors profit at €1.667 billion, despite a 40% increase in Sector profit in Energy.
	•		Net income was €1.317 billion, an increase from the second quarter but a decline compared to the strong third quarter of fiscal 2008.
	•		Free cash flow declined due in part to substantial outflows related to previously reported project reviews and initiatives to safeguard profitability.

Another quarter of macroeconomic contraction. The world economy remained in recession in our fiscal third quarter (April through June), with particularly strong impacts on the manufacturing sector. During the third quarter, the economic research institute IHS Global Insight, Inc. reduced its forecast for global gross domestic product (GDP) growth for 2009 to a negative 2.6%. The Purchasing Managers’ Index (PMI) in the U.S. and the Euro-Zone PMI in Europe showed sharp declines compared to the June quarter a year earlier, as did order intake data released by the German Federation of Engineering Industries (VDMA). In the final month of the quarter, these indices and other economic data began to show that the contraction is slowing in some regions and industries, even as it deepens in others. Given these mixed signals, it remains difficult to anticipate how the macroeconomic environment will affect the markets relevant for Siemens.

Modest revenue decline despite challenging conditions. Third-quarter revenue was €18.348 billion, down 4% from the third quarter a year earlier. Our strong order backlog had a significant stabilizing effect on revenue during an unusually challenging quarter for the world economy. The Energy Sector delivered double-digit revenue growth, while Healthcare grew organically and also benefited from positive currency translation effects. These increases were more than offset by a broad-based revenue decline in Industry, in particular at its shorter-cycle businesses which are more exposed to macroeconomic cycles.

On a geographic basis, revenue grew 5% in Asia, Australia on double-digit growth in China. In the region comprising Europe, the Commonwealth of Independent States (C.I.S.), Africa and the Middle East, revenue declined 9%, including sharply lower revenue in Industry, particularly in Germany, as well as successful streamlining of Other Operations.

Significant demand cutbacks in a recessionary economy. The global macroeconomic and financing environment reduced customer demand in all Sectors, including further postponements of potential new contracts. As a result, order intake was down 28% and the book-to-bill ratio was 0.94 in the third quarter. On an organic basis, excluding currency translation effects and portfolio transactions, revenue declined by 4% and orders came in 27% lower compared to the prior-year quarter. The total backlog for our three Sectors was €84.3 billion.

Order intake was influenced most strongly by Industry, which saw demand fall sharply from a high basis of comparison in the prior-year period which included exceptionally large orders at Mobility. Customer postponements of new projects limited the available market for contract wins at Energy, and Healthcare orders came in just below the prior-year level including beneficial currency translation effects.

On a geographic basis, market conditions for new orders weakened in all regions, with the sharpest declines in the Americas and Europe, C.I.S., Africa, Middle East. A high basis of comparison, including large orders at Renewable Energy and Mobility, contributed to the year-over-year decline in the Americas. Demand cutbacks in Europe, C.I.S., Africa, Middle East were more broad-based.

Economic downturn reduces Total Sectors profit. Total Sectors profit for the third quarter declined 21% year-over-year. The economic downturn substantially reduced revenue in Industry, and volume-driven declines in profitability took its Sector profit down sharply. Energy achieved a 40% increase in profit year-over-year on a combination of economies of scale, improvements in project execution and improved business mix. In an otherwise strong quarter, Healthcare reported lower profit due to a provision of €128 million for additional costs related to particle therapy contracts. All three Sectors reduced their expenses for marketing, selling and general administration (SG&A) compared to the prior-year quarter.

Disposals partially offset decline in Total Sectors profit. Income from continuing operations was €1.224 billion, a 17% decrease compared to the prior-year period. Basic EPS on a continuing basis declined to €1.35 from €1.61 a year earlier. The major factor in this decrease was lower Total Sectors profit. In addition, centrally carried pension costs increased and Other Operations posted a wider loss due primarily to the electronics assembly business. Gains on sales of real estate increased compared to the prior-year quarter, and profit from Equity Investments was higher due to the sale of our stake in Fujitsu Siemens Computers (Holding) B.V. (FSC) to Fujitsu Limited.

Positive contribution from discontinued operations. Net income of €1.317 billion included €93 million in income from discontinued operations, related mainly to a positive effect of €154 million from a settlement in connection with the sale of a stake in the enterprise networks business. Net income a year earlier was €1.419 billion, including a loss from discontinued operations of €56 million. EPS in the current quarter was €1.45 compared to €1.55 in the prior-year period.

Modest decline in Free cash flow at Sector level. Free cash flow declined to €1.689 billion at the Sector level, due to substantial cash outflows related to previously disclosed charges stemming from project reviews and structural initiatives in fiscal 2008. Free cash flow from continuing operations was lower than in the prior-year period, which benefited from cash inflows related to Corporate Treasury activities. For comparison, the current quarter included the cash outflows mentioned above as well as outlays for the global SG&A program and higher payments for income taxes.

ROCE declines on lower income. On a continuing basis, ROCE for the third quarter of fiscal 2009 declined to 11.7% from 14.7% in the prior-year period. This was mainly due to lower income from continuing operations in the current period.

Pension plan underfunding decreases sequentially. The estimated underfunding of our principal pension plans as of June 30, 2009, amounted to €5.0 billion, compared to an underfunding of €2.5 billion as of September 30, 2008 and €5.3 billion as of March 31, 2009. The change in funded status since the end of the second quarter is due primarily to a positive return on plan assets. The positive investment return more than compensated for an increase in our estimated defined benefit obligation (DBO). The DBO rose with accrued service and interest costs as well as a decrease in the discount rate assumption as of June 30, 2009.

Change in long-term credit rating. On June 5, 2009, Standard & Poor’s changed its long-term credit rating for Siemens from “AA-” to “A+”. Moody’s Investors Service did not change its ratings related to Siemens. We expect no significant impact on our funding costs as a consequence of the downgrade by Standard & Poor’s.

Results of Siemens

Results of Siemens — Three months ended June 30, 2009

The following discussion presents selected information for Siemens for the third quarter of fiscal 2009:

New orders and revenue

Revenue declined to €18.348 billion, down 4% from the third quarter a year earlier. While our strong order backlog had a significant stabilizing effect on revenue, weak conditions in the global macroeconomic and financing environment cut new demand in all Sectors, including further postponements of potential new contracts. Together with a higher level of large orders in the prior-year period, this took order intake down by 28%. The book-to-bill ratio came in below 1 for the quarter, reducing the total order backlog for the three Sectors to €84.3 billion. On an organic basis, excluding the net effect of currency translation and portfolio transactions, revenue declined by 4% and orders came in 27% lower compared to the prior-year period.

		New Orders (location of customer)
		Three months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Europe, C.I.S.**, Africa, Middle East			9,571				13,514				(29)	%			(25)	%			(2)	%			(2)	%
therein Germany			2,327				3,328				(30)	%			(29)	%			0	%			(1)	%
Americas			4,322				6,136				(30)	%			(34)	%			5	%			(1)	%
therein U.S.			3,008				4,576				(34)	%			(42)	%			9	%			(1)	%
Asia, Australia			3,267				4,027				(19)	%			(22)	%			3	%			0	%
therein China			1,077				1,455				(26)	%			(33)	%			7	%			0	%
therein India			592				643				(8)	%			(6)	%			(2)	%			0	%
Siemens			17,160				23,677				(28)	%			(27)	%			1	%			(2)	%

Orders related to external customers decreased substantially in the third quarter of fiscal 2009 on declines in all three Sectors. The Industry Sector — our largest Sector — saw orders decline by more than 40% compared to the prior-year period, on double-digit decreases in all Divisions, led by Mobility, Drive Technologies and Industry Solutions. The decline in most Industry Divisions was driven by weaker demand due to the global macroeconomic conditions. In contrast, the change at Mobility was due primarily to an exceptionally high basis of comparison in the third quarter a year earlier, which included a €1.4 billion order from the Belgian state railway system. In the Energy Sector, customer postponements of potential new projects limited the available market for contract wins, leading to a decline of 15% for the Sector year-over-year. While order intake was lower at nearly all Divisions in Energy, this effect was most noticeable at Oil & Gas. Healthcare orders came in just below the prior-year level, benefiting from positive currency translation effects. In addition, due primarily to substantial dispositions and other streamlining actions, orders at Other Operations declined significantly in the current period.

In the region Europe, C.I.S., Africa, Middle East - our largest reporting region — orders decreased 29%, driven by a sharp decline in the Industry Sector. Healthcare orders were also lower in this region year-over-year. Energy came in level compared to the prior-year period, as a higher volume of large orders at Renewable Energy and Fossil Power Generation offset lower demand in other Divisions. Orders at Renewable Energy included a contract to supply 175 wind turbines for the “London Array” — projected as the world’s largest offshore wind-farm. In the Americas, a high basis of comparison, including greater volume from major orders at Renewable Energy and Mobility, contributed to the year-over-year order decline of 30%. Despite strong positive currency translation effects from the U.S., orders in this region came in lower in all three Sectors. On an organic basis, orders declined 34% in the Americas and 42% in the U.S. In Asia, Australia orders declined 19% year-over-year due to decreases in Industry and Energy, while Healthcare orders came in higher. Orders declined sharply in China compared to the prior-year quarter, driven by lower demand at Industry Solutions, Fossil Power Generation and Power Transmission. The effect of this decline was partially offset by significant positive currency translation effects. The order decline in India was less severe due primarily to a major contract win at Power Transmission in the current period.

		Revenue (location of customer)
		Three months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Europe, C.I.S.**, Africa, Middle East			10,068				11,035				(9)	%			(4)	%			(2)	%			(3)	%
therein Germany			2,612				3,260				(20)	%			(19)	%			0	%			(1)	%
Americas			4,922				4,935				0	%			(8)	%			9	%			(1)	%
therein U.S.			3,742				3,617				3	%			(10)	%			14	%			(1)	%
Asia, Australia			3,358				3,212				5	%			1	%			4	%			0	%
therein China			1,376				1,213				13	%			5	%			9	%			(1)	%
therein India			386				491				(21)	%			(22)	%			(2)	%			3	%
Siemens			18,348				19,182				(4)	%			(4)	%			2	%			(2)	%

Revenue related to external customers declined 4% compared to the prior-year quarter, as increases in Energy and Healthcare were more than offset by a broad-based revenue decline in Industry. In the Industry Sector, revenue decreased 13%, led by sharp declines particularly in the Sector’s shorter-cycle businesses at Industry Automation, Drive Technologies and OSRAM. Energy delivered double-digit revenue growth by executing projects in its substantial order backlog, most notably at Fossil Power Generation, Power Transmission and Renewable Energy. A revenue increase of 7% in Healthcare benefited from positive currency translation effects that added 5 percentage points to organic revenue growth. Revenue from Other Operations again declined significantly, due primarily to our continued streamlining actions.

In Europe, C.I.S., Africa, Middle East, third-quarter revenue decreased by 9% year-over-year, including sharply lower revenue in the Industry Sector driven particularly by declines in the Sector’s shorter-cycle businesses. Energy produced a double-digit rise in revenue, while Healthcare revenue came in slightly above the prior-year quarter. In addition, continued streamlining of Other Operations again had a strong effect on revenue development in the region. Lower revenue in Germany was due primarily to substantial declines at Drive Technologies and Industry Automation. In the Americas, revenue came in level with the prior-year period, benefiting from strong positive currency translation effects from the U.S. Revenue increases in Healthcare and Energy in the region were offset by lower revenue in Industry. In the Asia, Australia region, Energy and Healthcare delivered double-digit increases, while the Industry Sector came in below the prior-year level. As a result, revenue rose 5% overall, including double-digit growth in China, which benefited from strong positive currency translation effects. Revenue fell in India compared to a high basis a year earlier.

Consolidated Statements of Income

		Three months
		ended June 30,
(€ in millions)		2009				2008				% Change
Gross profit on revenue			4,981				5,876				(15	)%
as percentage of revenue			27.1	%			30.6	%

Gross profit for the third quarter decreased 15% compared to the same period a year earlier, due primarily to a sharp decline in the Industry Sector. Volume-driven reductions in capacity utilization, in particular at Industry Automation, Drive Technologies and OSRAM, continued to reverse economies of scale achieved in prior-year periods.

Healthcare also posted lower gross profit compared to the prior-year quarter, including the charge of €128 million related to particle therapy contracts mentioned above. In contrast, Energy significantly improved its gross profit year-over-year, including higher gross profits and gross profit margins at most Divisions, particularly at Fossil Power Generation. In combination, these factors resulted in a gross profit margin of 27.1% for Siemens overall, down from 30.6% in the third quarter a year earlier.

		Three months
		ended June 30,
(€ in millions)		2009				2008				% Change
Research and development expenses			(989	)			(916	)			8	%
as percentage of revenue			5.4	%			4.8	%			—
Marketing, selling and general administrative expenses			(2,586	)			(3,195	)			(19)	%
as percentage of revenue			14.1	%			16.7	%			—
Other operating income			597				259				131	%
Other operating expense			(206	)			(144	)			43	%
Income from investments accounted for using the equity method, net			(97	)			74				—
Financial income (expense), net			(38	)			94				—

Research and development (R&D) expenses increased to €989 million, from €916 million in the third quarter of fiscal 2008, led by higher outlays in Energy. R&D expenses as a percentage of revenue rose to 5.4% from 4.8% a year earlier. Marketing, selling and general administrative (SG&A) expenses declined to €2.586 billion, or 14.1% of revenues, from €3.195 billion or 16.7% of revenue in the prior-year period, including lower expenses in all Sectors.

Other operating income increased to €597 million in the third quarter, compared to €259 million in the same period a year earlier. The current quarter included a €309 million gain on the sale of our stake in FSC to Fujitsu Limited and a gain of €221 million from the sale of residential real estate holdings. For comparison, Other operating income in the prior-year period included a pre-tax gain of 113 million on the sale of the wireless modules business in the Industry Sector. Other operating expense was €206 million, up from €144 million in the third quarter a year earlier. The current period includes a charge of €54 million related to a global settlement agreement with the World Bank Group. Expenses for outside advisors engaged in connection with investigations into alleged violations of anti-corruption laws and related matters as well as remediation activities decreased to €8 million from €106 million in the third quarter a year earlier.

Income from investments accounted for using the equity method, net was a negative €97 million, down from a positive €74 million in the prior-year period. The change was due mainly to an equity investment loss of €121 million related to Enterprise Networks Holding B.V. (EN) in the current quarter. In addition, the equity investment loss related to Nokia Siemens Networks B.V. (NSN) increased to €72 million from a loss of €21 million in the third quarter a year ago.

Financial income (expense), net decreased to a negative €38 million, down from a positive €94 million in the third quarter of the prior fiscal year. Within this change, Income (expense) from pension plans and similar commitments, net, swung from a positive €37 million in the prior-year period to a negative €53 million, due to higher interest cost and lower expected return on plan assets.

		Three months
		ended June 30,
(€ in millions)		2009				2008				% Change
Income from continuing operations before income taxes			1,662				2,048				(19)	%
Income taxes			(438	)			(573	)			(24)	%
as percentage of income from continuing operations before income taxes			26	%			28	%			—
Income from continuing operations			1,224				1,475				(17)	%
Income (loss) from discontinued operations, net of income taxes			93				(56	)			—
Net income			1,317				1,419				(7)	%
Net income attributable to minority interest			57				45				—
Net income attributable to shareholders of Siemens AG			1,260				1,374				(8)	%

Income from continuing operations before income taxes was €1.662 billion in the third quarter, compared to €2.048 billion in the same period a year earlier. The change year-over-year was due to the factors mentioned above, primarily including lower gross profit partly offset by a broad-based reduction in SG&A expenses. The effective tax rate on income from continuing operations was 26%. The reduction compared to 28% in the prior-year period stemmed mainly from the tax-free gain on the sale of our stake in FSC, partly offset by the negative swing in Income (loss) from investments accounted for using the equity method. As a result, Income from continuing operations after taxes was €1.224 billion, down from €1.475 billion in the third quarter of fiscal 2008.

Discontinued operations include former Com activities as well as Siemens VDO Automotive (SV), which was sold to Continental AG in the first quarter of fiscal 2008. The former Com activities include the enterprise networks business, 51% of which was divested during the fourth quarter of fiscal 2008; telecommunications carrier activities transferred into NSN in the third quarter of fiscal 2007; and the mobile devices business sold to BenQ Corporation in fiscal 2005. Income from discontinued operations in the current quarter was a positive €93 million, related mainly to a positive effect of €154 million from a settlement in connection with the sale of a stake in the enterprise networks business. For comparison, discontinued operations posted a loss of €56 million in the third quarter a year earlier. For additional information regarding discontinued operations, see “Notes to Condensed Interim Consolidated Financial Statements” within this Interim Report.

Net income for Siemens in the third quarter was €1.317 billion, compared to €1.419 billion in the same period a year earlier. Net income attributable to shareholders of Siemens AG was €1.260 billion, down from €1.374 billion in the third quarter of fiscal 2008.

Results of Siemens — Nine months ended June 30, 2009

The following discussion presents selected information for Siemens for the first nine months of fiscal 2009:

New orders and revenue

In the first nine months of fiscal 2009, revenue rose 2% compared to the prior-year-period, to €56.937 billion, while orders came in at €60.244 billion, down 15% from the same period a year earlier. This resulted in a book-to-bill ratio of 1.06. On an organic basis, excluding the net effect of currency translation and portfolio transactions, nine-month revenue rose 3% year-over-year and orders decreased by 14%.

		New Orders (location of customer)
		Nine months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Europe, C.I.S.**, Africa, Middle East			33,426				41,115				(19)	%			(15)	%			(2)	%			(2)	%
therein Germany			9,497				10,619				(11)	%			(10)	%			0	%			(1)	%
Americas			14,487				18,072				(20)	%			(25)	%			6	%			(1)	%
therein U.S.			10,718				13,425				(20)	%			(28)	%			9	%			(1)	%
Asia, Australia			12,331				12,103				2	%			(1)	%			3	%			0	%
therein China			4,190				4,255				(2)	%			(11)	%			9	%			0	%
therein India			1,737				1,832				(5)	%			0	%			(5)	%			0	%
Siemens			60,244				71,290				(15)	%			(14)	%			1	%			(2)	%

Orders related to external customers decreased in the first nine months of fiscal 2009, driven by declines in Industry and Energy. In the Industry Sector, order intake decreased 22% compared to the prior-year period. All Divisions in the Sector reported lower orders, led by declines at Drive Technologies, Industry Solutions and Industry Automation. Due in part to customer postponements of potential new projects, the Energy Sector saw orders fall 10% from the high level of the first nine months a year earlier, driven primarily by lower demand at Oil & Gas, Power Transmission and Power Distribution. Orders rose 3% in the Healthcare Sector, strongly benefiting from positive currency translation effects from the U.S. In addition, orders at Other Operations declined significantly due to continued streamlining actions.

In Europe, C.I.S., Africa, Middle East, orders declined 19% primarily on decreases in Industry and Energy, while Healthcare orders came in near the level of the first nine months a year earlier. While declines at all Divisions contributed to the substantially lower order volume in Industry, higher demand at Renewable Energy, driven by a number of large orders in the current period, limited the drop in order intake in the Energy Sector in this region. In Germany, major contract wins at Mobility and Renewable Energy softened the impact of a broad-based decline in other Divisions and continued streamlining actions at Other Operations. In the Americas, orders decreased 20% despite strong positive currency translation effects from the U.S. Within the region, the contraction of order intake was strongest in Energy, mainly due to a lower volume from major orders at Renewable Energy compared to first nine months of fiscal 2008. With a higher volume from large orders at Mobility in the prior-year period, orders in Industry also declined by double digits, while Healthcare orders came in just above the prior-year level. In Asia, Australia, orders rose 2% on substantial increases in Energy, including new orders for energy infrastructure in Iraq, and higher order intake in Healthcare. Orders in the Industry Sector declined in the region, due primarily to lower demand at Industry Solutions and Drive Technologies. In both China and India, a general decline in demand was somewhat offset by major orders. In addition, China benefited from significant positive currency translation effects.

		Revenue (location of customer)
		Nine months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Europe, C.I.S.**, Africa, Middle East			31,538				31,990				(1)	%			4	%			(2)	%			(3)	%
therein Germany			8,588				9,333				(8)	%			(6)	%			0	%			(2)	%
Americas			15,654				14,519				8	%			0	%			9	%			(1)	%
therein U.S.			11,944				10,802				11	%			(1)	%			13	%			(1)	%
Asia, Australia			9,745				9,167				6	%			3	%			3	%			0	%
therein China			3,791				3,429				11	%			2	%			10	%			(1)	%
therein India			1,149				1,287				(11)	%			(6)	%			(6)	%			1	%
Siemens			56,937				55,676				2	%			3	%			1	%			(2)	%

Revenue related to external customers rose 2% in the first nine months of fiscal 2009, as all Divisions in Energy and Healthcare reported higher revenue. Fossil Power Generation and Renewable Energy were the primary drivers for a 20% revenue increase in Energy. Benefiting from substantial positive currency translation effects, Healthcare revenue rose 9% compared to the first nine months of fiscal 2008, due primarily to growth at Imaging & IT and Diagnostics. The Industry Sector came in 5% below the level of the prior-year period, as declines at Industry Automation, Drive Technologies and OSRAM offset increases at the other Divisions. In addition, streamlining of Other Operations continued to significantly reduce revenue year-over-year.

In Europe, C.I.S., Africa, Middle East, revenue declined 1% year-over-year, held back by negative currency translation and portfolio effects, the latter due mainly to continued streamlining of Other Operations. Sector revenue in the region rose by double digits in Energy and at a lower rate in Healthcare, and decreased in the Industry Sector. Revenue in Germany declined 8% in the first nine months, due primarily to lower demand particularly in the short-cycle businesses of the Industry Sector and continued streamlining actions within Other Operations. In the Americas, revenue rose 8%, due almost exclusively to significant positive currency translation effects from the U.S. Revenue growth in the region was strongest in the Energy Sector, including double-digit increases in all Divisions. Healthcare also reported double-digit growth in the Americas, while revenue in Industry fell primarily on declines at OSRAM and Industry Automation. Asia, Australia saw a 6% expansion in revenue on growth in all Sectors, led by Energy and Healthcare. While revenue growth in China benefited substantially from positive currency translation effects, a revenue decline in India was due primarily to Drive Technologies and Oil & Gas.

Consolidated Statements of Income

		Nine months
		ended June 30,
(€ in millions)		2009				2008				% Change
Gross profit on revenue			15,582				16,097				(3)	%
as percentage of revenue			27.4	%			28.9	%

Gross profit for the first nine months of fiscal 2009 decreased 3% compared to the prior-year period, as a strong gross profit increase in the Energy Sector was more than offset by substantially lower gross profit in Industry, a decline in Healthcare, and a sharp drop at Other Operations due to the continuing streamlining actions. The increase in the Energy Sector included revenue-driven gross profit growth at all Divisions, led by Fossil Power Generation which included substantial project charges in the prior-year period. Lower gross profit in Industry was due primarily to revenue-driven declines at Industry Automation, OSRAM and Drive Technologies. Gross profit in Healthcare in the first nine months of fiscal 2009 was impacted by charges of €169 million related to particle therapy contracts. In combination, these factors led to a decline in gross profit margin for Siemens overall, which came in at 27.4% compared to 28.9% a year earlier.

		Nine months
		ended June 30,
(€ in millions)		2009				2008				% Change
Research and development expenses			(2,875	)			(2,681	)			7	%
as percentage of revenue			5.0	%			4.8	%			—
Marketing, selling and general administrative expenses			(7,974	)			(9,493	)			(16)	%
as percentage of revenue			14.0	%			17.1	%			—
Other operating income			881				636				39	%
Other operating expense			(491	)			(607	)			(19)	%
Income from investments accounted for using the equity method, net			(29	)			283				—
Financial income (expense), net			(362	)			119				—

R&D expenses increased to €2.875 billion, or 5.0% of revenue, from €2.681 billion, or 4.8% of revenue a year earlier, led by higher outlays in Energy and Industry. SG&A expenses declined substantially to €7.974 billion, or 14.0% of revenue, from €9.493 billion, or 17.1% of revenue in the prior-year period, including lower expenses in all three Sectors.

Other operating income for the first nine months was €881 million, compared to €636 million in the prior-year period. The increase was due primarily to a gain on the sale of our stake in FSC in the current period. For comparison, the prior-year period included a gain of €113 million on the sale of the wireless modules business. Gains from sales of real estate for the first nine months were also higher year-over-year, including the third-quarter gain from the sale of residential real estate holdings mentioned above. Other operating expense came in below the level of the first nine months a year earlier. This was due primarily to substantially lower expenses for outside advisors engaged in connection with investigations into alleged violations of anti-corruption laws and related matters as well as remediation activities, which totaled €90 million in the current period compared to €347 million in the first nine months a year earlier. Impairments of goodwill were lower in the current period, as the prior-year period included a goodwill impairment of €70 million related to a building and infrastructure business, 50% of which was divested between the periods under review. In addition, the current period included the above-mentioned third-quarter charge related to a global settlement agreement with the World Bank Group, and expenses related to the divestment of an industrial manufacturing unit in Austria, which was included in Other Operations.

Income from investments accounted for using the equity method, net was a negative €29 million, down from a positive €283 million in the prior-year period. The current period included an equity investment loss of €119 million related to EN. In addition, the equity investment loss related to NSN increased to €215 million from a loss of €103 million in the first nine months a year earlier.

Financial income (expense), net decreased to a negative €362 million in the first nine months of fiscal 2009, down from a positive €119 million a year earlier. This change is due mainly to Income (expense) from pension plans and similar commitments, net, which swung from a positive €108 million in the prior-year period to a negative €169 million, due to higher interest cost and lower expected return on plan assets. The current period also includes higher expenses for allowances and write offs of finance receivables as well as higher interest-related expenses associated with asset retirement obligations.

		Nine months
		ended June 30,
(€ in millions)		2009				2008				% Change
Income from continuing operations before income taxes			4,732				4,354				9	%
Income taxes			(1,293	)			(1,236	)			5	%
as percentage of income from continuing operations before income taxes			27	%			28	%			—
Income from continuing operations			3,439				3,118				10	%
Income from discontinued operations, net of income taxes			121				5,188				(98)	%
Net income			3,560				8,306				(57)	%
Net income attributable to minority interest			135				116				—
Net income attributable to shareholders of Siemens AG			3,425				8,190				(58)	%

Income from continuing operations before income taxes was €4.732 billion for the first nine months, compared to €4.354 billion for the same period a year earlier. The change year-over-year was due to the factors mentioned above, primarily the broad-based reduction in SG&A expenses partly offset by lower gross profit and a negative swing in Financial income. The effective tax rate on income from continuing operations was 27%, down from 28% in the prior-year period. As a result, income from continuing operations after taxes was €3.439 billion, up from €3.118 billion in the first nine months of fiscal 2008.

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, 51% of which was divested during the fourth quarter of fiscal 2008; telecommunications carrier activities transferred into NSN in the third quarter of fiscal 2007; and the mobile devices business sold to BenQ Corporation in fiscal 2005. Income from discontinued operations in the current period was €121 million, compared to €5.188 billion a year earlier. The difference is due mainly to €5.4 billion in the prior-year period related to SV, including operating results along with a substantial gain on the sale of the business. Discontinued operations in the first nine months a year earlier also included severance charges and an impairment of long-lived assets at the enterprise networks business. For additional information regarding discontinued operations, see “Notes to Condensed Interim Consolidated Financial Statements” within this Interim Report.

Net income for Siemens in the first nine months was €3.560 billion, compared to €8.306 billion in the same period a year earlier, with the difference due primarily to discontinued operations as discussed above. Net income attributable to shareholders of Siemens AG was €3.425 billion, down from €8.190 billion in the prior-year period.

Portfolio activities

In April 2009, we closed the sale of our stake of 50% in FSC to Fujitsu Limited. The transaction resulted in a preliminary gain, net of related costs of €327 million, of which €18 million was recognized in the first quarter of fiscal 2009.

We completed certain other portfolio transactions during the first nine months of fiscal 2009 which did not have a significant effect on our Interim Consolidated Financial Statements. For further information on acquisitions and dispositions, see “Notes to Condensed Interim Consolidated Financial Statements.”

Segment information analysis

Sectors

Industry — Three months ended June 30, 2009

		Sector*
		Three months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted**				Currency				Portfolio
Profit			534				1,162				(54	)%
Profit margin			6.6	%			12.5	%
New orders			6,597				11,408				(42	)%			(42	)%			1	%			(1	)%
Revenue			8,129				9,321				(13	)%			(14	)%			2	%			(1	)%

In the third quarter, the Industry Sector saw substantial production cutbacks in key customer industries. With an exceptionally high level of orders in the prior-year period, this resulted in a 42% decline in third-quarter orders year-over-year. While Industry’s order backlog decreased by €2 billion during the quarter, to €29.8 billion, it still provided a strong stabilizing influence in holding the Sector’s revenue decline to 13%. Lower revenue had a significant effect on profitability at Industry Automation, Drive Technologies and OSRAM, due to reduced capacity utilization and a less favorable product mix compared to the prior-year period. This more than offset stable margins at Building Technologies and Industry Solutions and another quarter of profitable growth at Mobility. Profit for Industry overall declined by more than half compared to the prior-year period. While Mobility is well positioned for growth, overall market conditions for the Industry Sector remain challenging.

		New Orders by Divisions
		Three months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Industry Automation			1,540				2,214				(30	)%			(29	)%			1	%			(2	)%
Drive Technologies			1,358				2,307				(41	)%			(42	)%			1	%			0	%
Building Technologies			1,360				1,512				(10	)%			(14	)%			2	%			2	%
OSRAM			911				1,109				(18	)%			(18	)%			4	%			(4	)%
Industry Solutions			1,170				2,040				(43	)%			(44	)%			1	%			0	%
Mobility			880				2,952				(70	)%			(70	)%			0	%			0	%

		Revenue by Divisions
		Three months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Industry Automation			1,574				2,202				(29	)%			(27	)%			1	%			(3	)%
Drive Technologies			1,699				2,164				(21	)%			(22	)%			1	%			0	%
Building Technologies			1,406				1,442				(2	)%			(7	)%			3	%			2	%
OSRAM			911				1,109				(18	)%			(18	)%			4	%			(4	)%
Industry Solutions			1,562				1,728				(10	)%			(12	)%			2	%			0	%
Mobility			1,590				1,403				13	%			12	%			1	%			0	%

		Profit and Profit Margin by Divisions
		Profit												Profit Margin
		Three months												Three months
		ended June 30,												ended June 30,
(€ in millions)		2009				2008				%Change				2009				2008
Industry Automation			85				467				(82	)%			5.4	%			21.2	%
Drive Technologies			171				363				(53	)%			10.1	%			16.8	%
Building Technologies			84				95				(12	)%			6.0	%			6.6	%
OSRAM			8				111				(93	)%			0.9	%			10.0	%
Industry Solutions			90				98				(8	)%			5.8	%			5.7	%
Mobility			98				39				151	%			6.2	%			2.8	%

     Challenges increased for Industry Automation in the third quarter, including a deeper downturn in the Division’s large factory automation market. As a result, third-quarter revenue and orders fell 29% and 30%, respectively, compared to the prior-year quarter. Europe, C.I.S., Africa, Middle East, the Division’s largest regional market, posted the strongest decline. With a corresponding decrease in capacity utilization and less favorable product mix, Industry Automation saw profits and profit margins fall in all business units. For comparison, profit in the prior-year period benefited from a gain of €113 million from the sale of the Division’s wireless modules business. Both periods include margin impacts related to the Division’s purchase of UGS Corp. (UGS) in fiscal 2007. Purchase price accounting (PPA) effects were €34 million in the current quarter and €36 million in the prior-year period. The third quarter a year ago also included integration costs of €5 million.

     Drive Technologies was increasingly affected by a deepening downturn in the machine-building industry. Third-quarter revenue decreased 21% year-over-year, particularly including the Division’s shorter-cycle businesses. Lower capacity utilization and a less favorable product mix took profit down by more than half compared to the prior-year period. Both periods include margin impacts related to the Division’s purchase of Flender Holding GmbH (Flender) in fiscal 2005. PPA effects were €9 million in the current quarter and €10 million in the prior-year period. Third-quarter orders came in 41% lower than a year earlier.

     Building Technologies converted its order backlog into current revenues at a stable pace in the third quarter, holding revenues nearly level with the prior-year quarter. The Division’s product mix was less favorable in the third quarter, and profit declined to €84 million. The slowdown in the global construction industry continued, and the Division posted a 10% decline in new orders that reached across all business units and regions.

     OSRAM’s third-quarter revenue fell by 18% year-over-year as demand continued to decline, most notably in the automotive and opto semiconductor businesses. This resulted in lower capacity utilization for the Division, which dropped profit to €8 million. OSRAM’s efforts to improve its cost structure and product mix will continue, and the Division expects associated charges in the fourth quarter.

     Profit at Industry Solutions came in below the level of the prior-year quarter due primarily to a 10% decline in revenues. The Division’s large order backlog had a stabilizing effect on revenue development, particularly in Asia, Australia. Orders in the Division’s large metals technologies business declined sharply compared to the prior-year period and the second quarter of fiscal 2009. This in turn took orders down 43% for Industry Solutions as a whole, including declines in all geographic regions.

     Orders at Mobility came in well below an unusually high basis of comparison in the prior-year quarter. Major orders were larger and more numerous in the third quarter a year ago, including a contract for 300 trains worth €1.4 billion. The Division delivered a 13% increase in revenue and a substantial rise in third-quarter profit year-over-year.

Industry — Nine months ended June 30, 2009

		Sector
		Nine months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Profit			2,139				3,106				(31	)%
Profit margin			8.2	%			11.3	%
New orders			25,174				32,209				(22	)%			(23	)%			1	%			0	%
Revenue			26,062				27,373				(5	)%			(6	)%			1	%			0	%

     Profit in the first nine months of fiscal 2009 for the Industry Sector fell by nearly a third year-over-year as Industry Automation, Drive Technologies and OSRAM, which achieved peak margins in the prior-year periods, were heavily affected by deteriorating macroeconomic conditions. The Sector’s other three Divisions, Mobility, Industry Solutions and Building Technologies increased profit year-over-year.

     Nine-month orders for Industry fell 22% compared to the prior-year period. All Divisions contributed to the decrease, with the strongest declines at Drive Technologies, Industry Solutions and Industry Automation. Revenue declined modestly year-over-year and followed the pattern of Sector profit: declines at Industry Automation, OSRAM and Drive Technologies more than offset higher revenue at the other three Divisions. On a geographic basis, declines in orders for the Sector were spread over the regions, with the largest region Europe, C.I.S., Africa, Middle East posting the highest decrease. Revenue was down in Europe, C.I.S., Africa, Middle East, while the Americas were near the prior-year level and Asia, Australia slightly above it.

		New Orders by Divisions
		Nine months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Industry Automation			5,111				6,732				(24	)%			(22	)%			1	%			(3	)%
Drive Technologies			5,071				7,255				(30	)%			(31	)%			1	%			0	%
Building Technologies			4,284				4,610				(7	)%			(11	)%			2	%			2	%
OSRAM			2,979				3,490				(15	)%			(15	)%			3	%			(3	)%
Industry Solutions			4,823				6,601				(27	)%			(27	)%			0	%			0	%
Mobility			5,012				6,033				(17	)%			(17	)%			0	%			0	%

		Revenue by Divisions
		Nine months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Industry Automation			5,236				6,413				(18	)%			(17	)%			1	%			(2	)%
Drive Technologies			5,713				6,142				(7	)%			(9	)%			1	%			1	%
Building Technologies			4,380				4,308				2	%			(2	)%			2	%			2	%
OSRAM			2,979				3,490				(15	)%			(15	)%			3	%			(3	)%
Industry Solutions			5,117				5,022				2	%			0	%			1	%			1	%
Mobility			4,696				4,194				12	%			13	%			(1	)%			0	%

		Profit and Profit Margin by Divisions
		Profit												Profit Margin
		Nine months												Nine months
		ended June 30,												ended June 30,
(€ in millions)			2009			2008				%Change					2009			2008
Industry Automation			437				1,253				(65	)%			8.3	%			19.5	%
Drive Technologies			675				929				(27	)%			11.8	%			15.1	%
Building Technologies			305				297				3	%			7.0	%			6.9	%
OSRAM			108				359				(70	)%			3.6	%			10.3	%
Industry Solutions			327				310				5	%			6.4	%			6.2	%
Mobility			289				(33	)			—				6.2	%			(0.8	)%

     Orders and revenue at Industry Automation decreased significantly for the first nine months compared to the prior-year period, and also declined quarter by quarter through the current fiscal year. Both orders and revenue contracted most strongly in Europe, C.I.S., Africa, Middle East, the Division’s largest regional market. Nine-month profit fell even more sharply, by nearly two thirds, mainly due to lower capacity utilization and a less favorable business mix. Furthermore, profit at Industry Automation in the prior-year period benefited from a pre-tax gain of €113 million from the sale of the Division’s wireless modules business as well as a gain of €38 million from the sale of another business. In the current period, PPA effects associated with the acquisition of UGS were €105 million. In the same period a year ago, PPA effects from this acquisition were €110 million and integration costs were €12 million.

     Order intake at Drive Technologies in the first nine months of fiscal 2009 was down 30% compared to the first nine months a year earlier. Double-digit decreases in all three regions included a particularly sharp decline in Europe, C.I.S., Africa, Middle East, the Division’s largest market. Nine-month revenue declined more slowly, coming in 7% lower year-over-year. While the Division continued to convert its backlog into current revenue, it could not entirely offset declining order intake, particularly in its short-cycle businesses, during the course of the fiscal year. On a geographic basis, revenue declined in Europe, C.I.S., Africa, Middle East as well as in Asia, Australia, while in the Americas revenue remained level with the prior-year period. Nine-month profit declined 27% year-over-year, on lower capacity utilization and a less favorable product mix. The Division recorded PPA effects of €27 million in the current period and €29 million in the first nine months of fiscal 2008.

     Building Technologies saw orders decline 7% in the current period compared to the first nine months of the prior fiscal year, due to the general slowdown in commercial construction particularly in Europe, C.I.S., Africa, Middle East and in the U.S. Revenue in the first nine months of fiscal 2009 increased slightly on growth in the Americas, particularly in the U.S. Profit for Building Technologies rose 3%, to €305 million, on strong results achieved in the first quarter of the current period.

     Revenue at OSRAM declined 15% compared to the first nine months a year earlier. The sharpest decreases came in the automotive and opto semiconductor businesses. Due to the resulting reduction in capacity utilization, OSRAM’s profit fell to €108 million for the first nine months of fiscal 2009 compared to €359 million in the prior-year period.

     Orders at Industry Solutions declined 27% year-over-year, as the Division’s large metals technologies business experienced a significant reversal of demand compared to the prior-year nine-month period. In contrast, conversion of prior-period orders in metals technologies lifted current-period revenue slightly above the level a year earlier, including strong growth in Asia, Australia. Profit increased 5% year-over-year to €327 million compared to €310 million in the first nine months a year earlier. Profit in the prior-year period benefited from a €30 million gain on the sale of a business.

     Nine-month orders at Mobility were €5.012 billion, 17% lower than in the same period a year earlier which included the rail order for 300 trains worth €1.4 billion mentioned earlier. Nine-month revenue at Mobility grew 12% year-over-year with growth in all regions. Profit increased to €289 million in the current nine months compared to a loss of €33 million in the prior year. Profitability in the current period rose on execution of higher-margin orders compared to the prior-year period, and also benefited from a €10 million positive effect related to the settlement of a claim in the rolling stock business. In contrast, the prior-year period was burdened by charges of €209 million during the second quarter related to project reviews as well as an additional €32 million in charges related to Combino.

Energy — Three months ended June 30, 2009

		Sector
		Three months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Profit			863				615				40	%
Profit margin			13.4	%			10.6	%
New orders			6,849				8,077				(15	)%			(14	)%			(1	)%			0	%
Revenue			6,436				5,829				10	%			9	%			1	%			0	%

     The Energy Sector showed its competitive strength with another strong performance as the top contributor to Total Sectors profit. Based on a combination of economies of scale, improvements in project execution and improved business mix, Sector profit rose to €863 million, with all Divisions reporting double-digit profit increases.

     Revenue for Energy increased 10% compared to the prior-year period, as conversion of the Sector’s long-cycle order backlog produced double-digit rises in revenue in Asia, Australia and in Europe, C.I.S., Africa, Middle East. Orders at Energy declined by 15% compared to the prior-year quarter, in part due to global macroeconomic and financing conditions that led customers to postpone new projects. Large contract wins for offshore wind-farms at Renewable Energy kept the Sector’s book-to-bill ratio above 1, and the order backlog remained at €48.0 billion. With first indications of customers slowing conversion of booked orders, the Sector expects continued softness in order intake and slowing revenue growth through fiscal 2009.

		New Orders by Divisions
		Three months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Fossil Power Generation			2,447				2,083				17	%			14	%			3	%			0	%
Renewable Energy			1,802				2,122				(15	)%			(9	)%			(6	)%			0	%
Oil & Gas			807				1,550				(48	)%			(47	)%			(1	)%			0	%
Power Transmission			1,215				1,588				(23	)%			(22	)%			(1	)%			0	%
Power Distribution			739				906				(18	)%			(17	)%			(1	)%			0	%

*      Excluding currency translation and portfolio effects.

		Revenue by Divisions
		Three months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Fossil Power Generation			2,397				2,096				14	%			11	%			3	%			0	%
Renewable Energy			761				631				21	%			18	%			3	%			0	%
Oil & Gas			1,098				1,030				7	%			11	%			(4	)%			0	%
Power Transmission			1,532				1,401				9	%			9	%			0	%			0	%
Power Distribution			770				776				(1	)%			(1	)%			0	%			0	%

		Profit and Profit Margin by Divisions
		Profit												Profit Margin
		Three months												Three months
		ended June 30,												ended June 30,
(€ in millions)		2009				2008				%Change				2009				2008
Fossil Power Generation			347				212				64	%			14.5	%			10.1	%
Renewable Energy			100				72				39	%			13.1	%			11.4	%
Oil & Gas			132				95				39	%			12.0	%			9.2	%
Power Transmission			183				147				24	%			11.9	%			10.5	%
Power Distribution			97				88				10	%			12.6	%			11.3	%

     Fossil Power Generation was again the top profit contributor among all Siemens Divisions. Profit rose to €347 million on increased economies of scale, improved project execution and a favorable seasonal effect from the service business. Revenue was up 14%, led by growth in Asia, Australia and the Europe, C.I.S., Africa, Middle East region. While order intake increased compared to a low basis in the prior-year period, orders at Fossil Power Generation came in well below the levels of the first two quarters of fiscal 2009.

     Renewable Energy again delivered a strong performance in the third quarter, with profit of €100 million climbing 39% from the third quarter a year ago. The increase included economies of scale and a more favorable revenue mix compared to the prior-year period. The Division reported its second-highest order entry ever, exceeded only by the prior-year period which included two exceptionally large orders. New orders of €1.802 billion in the current quarter included a contract to supply 175 wind turbines for the “London Array” — projected as the world’s largest offshore wind-farm. Along with other recent contract wins, this order continued to weight the Division’s backlog toward large, infrastructure-intensive offshore projects with long lead times between orders and revenue recognition for turbines. The Division expects lower revenue in the near term before it can begin converting long-cycle orders to current business.

     The Oil & Gas Division produced €132 million in profit in the third quarter, up 39% compared to the prior-year period, as all business units increased their profit contribution. Third-quarter revenue came in higher year-over-year on conversion of prior orders in the Division’s backlog. In contrast, new orders declined substantially as customers delayed new projects.

     Power Transmission contributed another strong quarter, with higher profit of €183 million and revenue growth of 9% compared to the prior-year quarter. Customers continued to delay potential new projects, however, and third-quarter orders declined with the overall market. Customer delays had a broader effect on results at Power Distribution, because of the Division’s higher percentage of industrial business with a shorter cycle between customer purchase decisions and vendor revenue impacts. Thus the Division saw a slight decline in revenue and a double-digit drop in orders compared to the third quarter a year earlier. Profit rose to €97 million, in part due to careful cost control.

Energy — Nine months ended June 30, 2009

		Sector
		Nine months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Profit			2,437				968				152	%
Profit margin			12.8	%			6.1	%
New orders			23,589				26,182				(10	)%			(9	)%			(1	)%			0	%
Revenue			19,032				15,828				20	%			20	%			0	%			0	%

     The Energy Sector turned in a strong performance in the first nine months of fiscal 2009, with all Divisions delivering higher profits compared to the prior-year period. Sector profit improved to €2.437 billion from €968 million a year earlier, making Energy the top profit contributor among the Sectors. Profit growth year-over-year was driven by a strong profit rebound at Fossil Power Generation, as its prior-year results were burdened by €559 million in second-quarter project charges as well as project charges of more than €200 million taken in the first quarter of fiscal 2008.

     Energy produced revenue growth of 20% in the first nine months of fiscal 2009 by executing projects in its substantial order backlog. All Divisions contributed double-digit rises in revenues, with Fossil Power Generation and Renewable Energy reporting the highest increases. Orders decreased 10% compared to the high level of the first nine months a year earlier, primarily on lower demand at Oil & Gas, Power Transmission and Power Distribution. On a geographic basis, revenue grew by double digits in all three regions, with the strongest increases in the Americas and in Europe, C.I.S., Africa, Middle East. Orders climbed in Asia, Australia due primarily to major energy infrastructure orders of €1.5 billion from Iraq won in the second quarter, while declining in the Americas and Europe, C.I.S., Africa, Middle East. The contraction in the Americas was driven by substantially lower volume from major orders at Renewable Energy compared to the prior-year period, which also included one of the two exceptionally large orders in the third quarter mentioned above.

		New Orders by Divisions
		Nine months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Fossil Power Generation			9,919				9,706				2	%			0	%			2	%			0	%
Renewable Energy			4,037				4,115				(2	)%			3	%			(5	)%			0	%
Oil & Gas			3,087				4,493				(31	)%			(29	)%			(2	)%			0	%
Power Transmission			4,724				5,505				(14	)%			(13	)%			(1	)%			0	%
Power Distribution			2,353				2,743				(14	)%			(13	)%			(1	)%			0	%

		Revenue by Divisions
		Nine months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Fossil Power Generation			7,147				5,729				25	%			23	%			2	%			0	%
Renewable Energy			2,274				1,465				55	%			53	%			2	%			0	%
Oil & Gas			3,186				2,838				12	%			18	%			(5	)%			(1	)%
Power Transmission			4,535				3,901				16	%			16	%			0	%			0	%
Power Distribution			2,421				2,207				10	%			11	%			(1	)%			0	%

*      Excluding currency translation and portfolio effects.

		Profit and Profit Margin by Divisions
		Profit												Profit Margin
		Nine months												Nine months
		ended June 30,												ended June 30,
(€ in millions)		2009				2008				%Change				2009				2008
Fossil Power Generation			948				(91	)			—				13.3	%			(1.6	)%
Renewable Energy			306				159				92	%			13.5	%			10.9	%
Oil & Gas			359				239				50	%			11.3	%			8.4	%
Power Transmission			503				416				21	%			11.1	%			10.7	%
Power Distribution			310				243				28	%			12.8	%			11.0	%

     Fossil Power Generation led all Siemens Divisions with €948 million in profit for the first nine months of fiscal 2009, combining higher revenue with economies of scale and improved project execution. The loss of €91 million in the prior-year period included the substantial project charges mentioned above. Revenue rose 25% on higher sales in Europe, C.I.S., Africa, Middle East and the Americas. Orders at the Division remained above the prior-year level primarily due to positive currency translation effects from the U.S. and strong order growth in Asia, Australia, particularly including €1.1 billion from the orders from Iraq mentioned above.

     Profit at Renewable Energy climbed to €306 million from €159 million in the first nine months of fiscal 2008, driven by economies of scale on a 55% increase in revenue. Orders in the Division came in near the prior-year level, as higher order intake in Europe, C.I.S., Africa, Middle East was more than offset by lower demand in the Americas. Order development in both regions was significantly influenced by large offshore wind-farm projects with long lead times between order intake and revenue recognition.

     Oil & Gas brought in €359 million in profits in the first nine months, up from €239 million in the same period a year earlier, including higher contributions from all business units. Revenue increased 12% year-over-year on growth in all regions, as the Division converted orders from its backlog into current business. In part due to a lower volume from major contracts, order intake slowed substantially in the current period, as customers continued to delay new projects.

     The Power Transmission Division posted profit of €503 million in the first nine months, up 21% from the prior-year period on double-digit revenue increases in all regions. Power Distribution grew profit by 28% to €310 million. Revenue rose 10%, on growth in the first two quarters of fiscal 2009. Both power grid infrastructure Divisions reported a decline in order intake compared to the prior-year period.

Healthcare — Three months ended June 30, 2009

		Sector
		Three months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Profit			270				326				(17	)%
Profit margin			9.4	%			12.2	%
New orders			2,772				2,801				(1	)%			(6	)%			5	%			0	%
Revenue			2,865				2,677				7	%			2	%			5	%			0	%

     The Healthcare Sector showed competitive strength in tough market conditions including economic recession, restricted financing and increased uncertainty as the U.S. in particular addresses national healthcare reform. Benefiting from positive currency translation effects, orders came in just below the prior-year quarter. Healthcare revenue increased 7%, to €2.865 billion, on growth primarily in Asia, Australia outside Japan. Higher revenue at the Sector’s two large divisions, Imaging & IT and Diagnostics, supported their double-digit profit increases and higher profit margins compared to the prior-year period. Healthcare profit overall came in at €270 million after the impact of a €128 million charge associated with particle therapy contracts in Workflow & Solutions. The Diagnostics Division recorded a total of €52 million in PPA effects and integration costs associated with acquisitions. These PPA effects and integration costs reduced Sector profit margin by 1.8 percentage points in the third quarter, compared to 2.1 percentage points in the prior-year period.

     Excluding positive currency translation effects, revenue was up 2% and orders were 6% below the prior-year quarter. Healthcare’s book-to-bill ratio was slightly below 1 and the backlog declined to €6.5 billion. The Sector expects its markets to remain challenging in coming quarters.

		New Orders by Divisions
		Three months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Imaging & IT			1,589				1,699				(6	)%			(11	)%			5	%			0	%
Workflow & Solutions			345				348				(1	)%			(3	)%			2	%			0	%
Diagnostics			891				831				7	%			2	%			5	%			0	%

*      Excluding currency translation and portfolio effects.

		Revenue by Divisions
		Three months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Imaging & IT			1,688				1,569				8	%			2	%			6	%			0	%
Workflow & Solutions			333				359				(7	)%			(11	)%			3	%			1	%
Diagnostics			887				826				7	%			2	%			5	%			0	%

*      Excluding currency translation and portfolio effects.

		Profit and Profit Margin by Divisions
		Profit												Profit Margin
		Three months												Three months
		ended June 30,												ended June 30,
(€ in millions)		2009				2008				%Change				2009				2008
Imaging & IT			277				199				39	%			16.4	%			12.7	%
Workflow & Solutions			(107	)			33				—				(32.1	)%			9.2	%
Diagnostics			104				82				27	%			11.7	%			9.9	%

     Imaging & IT was again a top profit contributor for Siemens. Third-quarter profit climbed 39%, to €277 million, driven by higher revenue and cost-reduction measures. Revenue rose 8%, to €1.688 billion, driven by strong backlog conversion and service.

On a geographic basis, the Division posted double-digit growth in Asia, Australia outside of Japan. On an organic basis, revenue for the Division was up 2% and orders declined 11% as the market remains difficult particularly in the U.S and Japan. The book-to-bill ratio was 0.94.

     Workflow & Solutions posted a loss of €107 million in the third quarter. This result included €128 million in further charges related to significant technical development challenges and delays associated with particle therapy contracts.

     Third-quarter profit at Diagnostics rose 27%, to €104 million, on a 7% increase in revenue. Diagnostics’ double-digit profit margin was reduced by PPA effects of €45 million and integration costs of €7 million associated with acquisitions. These factors together amounted to 5.9 percentage points. A year earlier, third-quarter PPA and integration costs at Diagnostics were each €29 million, cutting 7.0 percentage points from profit margin. The Division generated double-digit revenue growth in Asia, Australia and the Americas to offset soft demand in Europe, C.I.S., Africa, Middle East. On an organic basis, revenue and orders each rose 2%.

Healthcare — Nine months ended June 30, 2009

		Sector
		Nine months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Profit			967				999				(3	)%
Profit margin			11.0	%			12.4	%
New orders			8,619				8,397				3	%			(3	)%			4	%			2	%
Revenue			8,785				8,052				9	%			3	%			5	%			1	%

     Healthcare posted a decline in profit of 3% for the first nine months of fiscal 2009 due to charges associated with particle therapy contracts. Profit in both periods under review was negatively influenced by PPA effects and integration costs arising from acquisitions in fiscal 2007 and 2008 at the Diagnostics Division. Diagnostics recorded a total of €182 million in PPA effects and integration costs associated with acquisitions, including Dade Behring. PPA effects and integration costs were equivalent to 2.1 percentage points of Sector profit margin in the current nine-month period, compared to 3.1 percentage points in the prior-year period.

     Revenue in the first nine months for Healthcare rose 9% and new orders increased 3%, in each case helped by substantial positive currency translation effects. Asia, Australia outside Japan posted a double-digit increase in both revenue and orders. On an organic basis, revenue rose 3% and orders decreased 3%. In the current nine-month period the book-to-bill ratio for the Sector was just below 1, compared to 1.04 in the prior-year period.

		New Orders by Divisions
		Nine months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Imaging & IT			5,019				5,048				(1	)%			(5	)%			4	%			0	%
Workflow & Solutions			1,169				1,203				(3	)%			(5	)%			2	%			0	%
Diagnostics			2,622				2,366				11	%			1	%			5	%			5	%

*         Excluding currency translation and portfolio effects.

		Revenue by Divisions
		Nine months
		ended June 30,								% Change								therein
(€ in millions)		2009				2008				Actual				Adjusted*				Currency				Portfolio
Imaging & IT			5,231				4,848				8	%			3	%			5	%			0	%
Workflow & Solutions			1,118				1,083				3	%			1	%			2	%			0	%
Diagnostics			2,626				2,354				12	%			2	%			6	%			4	%