Edgar Filing: SIEMENS AKTIENGESELLSCHAFT

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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 January 23, 2003

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 x		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 x		No 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)(7):


Yes o		No x

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 x

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

TABLE OF CONTENTS


Signatures


		Press Presse Prensa For the business and financial press Munich, January 23, 2003

Siemens in the first quarter (October 1 to December 31) of fiscal 2003

	•		Net income for the first quarter of fiscal 2003 was €521 million, compared to net income of €538 million in the same period a year earlier.

	•		EBIT from Operations was €604 million, up from €487 million in the same quarter of fiscal 2002.

	•		Sales decreased 10% to €18.845 billion and orders decreased 21% to €20.145 billion. Excluding currency effects and the net effect of acquisitions and dispositions, sales decreased 1% and orders decreased 13%. Sequentially, and excluding currency effects and the net effect of acquisitions and dispositions, sales decreased 9% and orders increased 6%.

	•		Net cash from operating and investing activities was a negative €1.137 billion, after a supplemental cash contribution of €442 million to Siemens’ pension trusts in Germany and the U.K.

For the first quarter of fiscal 2003, ended December 31, 2002, Siemens earned net income of €521 million, including negative €17 million related to its ownership of shares in Infineon Technologies AG. In contrast, net income of €538 million in the first quarter a year earlier included a positive €157 million net effect related to Infineon. Earnings per share for the first quarter of fiscal 2003 were €0.59 compared to €0.61 in the same period a year earlier.

EBIT from Operations in the first quarter of fiscal 2003 was €604 million, compared to €487 million a year earlier. The current period included a net gain at the Power Generation group (PG) of €125 million from the effect of project cancellations, net of certain allowances on inventory. EBIT from Operations also benefited from lower charges for severance programs and asset write-downs, totaling €115 million in the current quarter compared to €147 million in the same quarter a year earlier. Quarterly non-allocated pension-related expense was higher, as expected, at €198 million compared to €63 million in the first quarter of the prior year. Growth in EBIT from Operations was also negatively impacted by currency translation effects.

Net cash from operating and investing activities for the first quarter of the fiscal 2003 was a negative €1.137 billion. Operating activities used net cash of €685 million, which includes €442 million in supplemental cash contributions to Siemens’ pension trusts in Germany and the U.K. An additional €377 million in real estate was also transferred to the Siemens German Pension Trust in the first quarter. These contributions bring Siemens’ supplemental pension funding for the last two quarters to €2.601 billion. Net cash from operating activities for the quarter also reflect a planned, ongoing phase-out of sales of accounts receivable, which resulted in negative €458 million in the current period. Net cash also includes a significant decline in customer prepayments at PG and Transportation Systems (TS). Investing activities used net cash of €452 million in the first quarter of fiscal 2003, and included significantly lower capital expenditures than in the same quarter a year ago. In the same quarter a year earlier, investing activities provided net cash of €393 million, including proceeds of €716 million from the sale of Mannesmann Sachs AG and €556 million from the sale of Infineon shares.

“Our first-quarter results are better than we expected, however we stand by the overall outlook which we provided in December,” said Siemens CEO Heinrich v. Pierer. “The margins of our groups continue to move toward their target ranges specified in Operation 2003.”

Operations in the first quarter of fiscal 2003

In the Information and Communications business area, Information and Communication Networks (ICN) continued to address the steep downturn in telecommunications infrastructure investment, particularly by carriers in Germany and the Americas. EBIT of negative €151 million included €24 million of severance charges and €25 million in write-downs of venture capital and other investments. In comparison, ICN had EBIT of negative €124 million in the same quarter a year earlier, when severance charges and asset write-downs totaled €76 million.

The Enterprise Networks division was profitable and increased its first-quarter EBIT year-over-year, while business volumes declined due to the effects of dispositions and more selective order intake. ICN’s Carrier Networks and Services business posted negative earnings on lower business volume compared to the same period a year earlier, but losses were lower than in recent quarters, due to a better product mix driven by software-related contracts. While ICN’s overall first-quarter sales of €1.804 billion were 29% lower than a year earlier, approximately ten percentage points of the change resulted from a combination of currency effects and the deconsolidation of its Unisphere Networks, Inc. and Network Systems businesses between the two periods under review. Orders fell 26% year-over-year, to €1.940 billion. The group expects to continue its PACT cost-cutting program in 2003, and to incur associated severance expenses.

Information and Communications Mobile (ICM) increased its first-quarter EBIT to €59 million from €37 million a year earlier, when the group took severance charges totaling €49 million at the Mobile Networks division. In the current period, the Mobile Phones division contributed EBIT of €52 million on sales of €1.309 billion, up from EBIT of €20 million in the first quarter a year earlier. The division improved profitability with the introduction of new, design-to-cost handsets, and increased sales for the Christmas quarter year-over-year with a record sell-in of 11.0 million phones. The Cordless Products and Wireless Modules divisions also contributed to earnings growth for the quarter. In contrast, continued price erosion and declines in demand led to a loss of €25 million on sales of €1.199 billion at the Mobile Networks division, compared to EBIT of €8 million in the same quarter of the prior year. Due to volume decreases at Mobile Networks, sales for ICM as a whole fell 9% from the same quarter a year ago, to €2.856 billion, and orders dropped 24%, to €2.509 billion.

EBIT at Siemens Business Services (SBS) fell to €12 million from €32 million in the first quarter a year earlier. In a weak market for information technology services, particularly in SBS’ important German market, the group’s sales fell 14% year-over-year, to €1.267 billion, and orders dropped 27%, to €1.394 billion.

In the Automation & Control business area, Automation and Drives (A&D) increased its EBIT contribution and EBIT margin compared to the first quarter a year ago, despite a continuing slowdown in capital expenditures in the manufacturing sectors of the U.S. and Europe. EBIT rose to €179 million, compared to EBIT of €173 million in the first quarter of fiscal 2002, and EBIT margin was 9.0%. Sales for the period increased 1% year-over-year, to €1.982 billion, while orders declined to €2.234 billion due primarily to currency effects.

Industrial Solutions and Services (I&S), posted EBIT of negative €33 million compared to positive €2 million in the same period a year earlier. During the current period, I&S incurred €31 million in additional expenses, primarily for severance and payments related to favourable renegotiation of employment contracts. First-quarter sales declined 11% year-over-year, to €929 million, and orders declined 8%, to €1.067 billion.

Siemens Dematic (SD) held EBIT level at €12 million, compared to €11 million in the same period a year earlier. The group’s Electronics Assembly Systems division continued to battle the effects of overcapacity in the global telecommunications equipment market, the Material Handling Automation division faced slowing market growth in Europe, and the Postal Automation division was affected by lower demand in the U.S. These factors contributed to a 23% drop in sales, to €622 million, while orders fell 20%, to €612 million. Nevertheless the group’s EBIT margin improved by more than half a percent, benefiting from productivity programs and improved project execution.

Siemens Building Technologies (SBT) had first-quarter EBIT of €43 million after charges for severance and plant closings totaling €13 million. While EBIT was lower than the prior-year level of €45 million, SBT improved its EBIT margin year-over-year, in particular with increased profitability at its HVAC Products division. Sales for the quarter declined 8% year-over-year, to €1.206 billion, and orders were down 10%, at €1.254 billion. Approximately five percentage points of the decline in both sales and orders were due to currency translation and deconsolidation effects.

In the Power business area, Power Generation (PG) led all Siemens groups with EBIT of €409 million, a €107 million increase compared to the first quarter of fiscal 2002. Earnings for the current period benefited from a net gain of €125 million from the effect of project cancellations, net of certain allowances on inventory.

This gain contributed to the rise in first-quarter EBIT margin year-over-year, from 14.2% to 22.9%. Sales for the quarter fell 16% compared to the same period a year earlier, to €1.785 billion. More than seven percentage points of PG’s sales decline resulted from currency translation effects and the sale of PG’s ceramics business between the two periods under review. Orders of €2.270 billion for the quarter came in below the record-setting first-quarter level a year ago, when PG booked approximately €1.0 billion of orders from two customers in the Middle East. In the current period, PG booked substantial gas turbine orders and also bolstered its growing backlog of service contracts. While PG’s order backlog overall declined from €20.1 billion at the end of fiscal 2002 to €18.6 billion at the close of the first quarter, more than half of the net change resulted from currency effects.

Power Transmission and Distribution (PTD) doubled its EBIT to €40 million compared to the first quarter of fiscal 2002, when its Metering business was unprofitable and the group took severance charges totaling €22 million. With the sale of Metering in the fourth quarter of the previous year, and increases in profitability at a majority of PTD’s remaining divisions, the group raised its EBIT margin by three full percentage points compared to the prior-year quarter, to 5.0%. The effects of currency translation and dispositions accounted for nearly all of the 20% year-over-year reduction in first-quarter sales, to €802 million. The group’s 33% decline in orders, to €1.109 billion, is largely attributable to comparison with the first quarter of fiscal 2002, when order bookings were unusually high at both the High Voltage and Transformer divisions.

In the Transportation business area, Transportation Systems (TS) delivered EBIT of €68 million, up from €50 million in the first quarter a year ago, and raised its EBIT margin more than a full point, to 6.3%. Sales climbed 12% compared to the prior-year quarter, to €1.080 billion. Orders were higher than sales for the quarter, and included a number of major new projects in Europe, but at €1.100 billion were below the €1.853 billion level TS reached in the first quarter of fiscal 2002, when it booked orders for a high-speed rail link in Holland and an advanced, driverless subway system in Nuremberg, Germany. The group’s order backlog stood at €11.2 billion at the end of the current period.

Siemens VDO Automotive (SV) continued its steady progress since the acquisition of the VDO businesses in fiscal 2001, posting EBIT of €73 million compared to negative €6 million in the same quarter a year ago. Growing sales of SV’s innovative diesel injection and navigation systems fueled profitability, as did a group-wide productivity program. Both sales and orders rose 5% year-over-year, to €2.133 billion, despite a 5% adverse affect on volume from currency translation and the sale of the group’s Hydraulik-Ring business between the two periods under review.

In the Medical business area, Medical Solutions (Med) was again a leader among the operating groups in EBIT and profitability. First-quarter EBIT rose 16% compared to a year earlier, to €245 million, and EBIT margin stepped up to 13.4%. Med’s imaging systems divisions again led the way, with new products making important contributions. Sales rose 3%, to €1.831 billion, despite a negative 7% currency translation effect, while orders remained level at €1.958 billion including a negative 8% currency effect.

In the Lighting business area, Osram continued to deliver solid earnings and margins, with EBIT of €106 million and EBIT margin of 9.4%. In comparison, first-quarter EBIT a year earlier was €78 million and EBIT margin was 7.1%. The group’s automotive lighting business was a particularly strong performer. Despite a negative 8% currency translation effect, Osram increased its business volume 2%, to €1.123 billion.

EBIT for Corporate, eliminations was negative €458 million compared to negative €345 million in the first quarter of fiscal 2002. Higher quarterly non-allocated pension expense was a key driver of the difference, rising from a charge of €63 million in the first quarter of fiscal 2002 to a charge of €198 million in the current period. Investment income contributed a positive €35 million compared to negative €24 million in the prior-year period. Included in investment income in the current period is a negative €17 million in equity results representing Siemens’ share of Infineon’s net loss in the first quarter of fiscal 2003. The equity share of Infineon’s net loss in the same quarter of the prior year was a negative €60 million. Corporate items were relatively unchanged, at negative €194 million in the current period compared to negative €201 million a year earlier.

Financing and Real Estate

Siemens Financial Services (SFS) significantly increased first-quarter earnings before income taxes compared to the prior year, from €42 million to €84 million, on strong performances at the Equipment & Sales Financing division and higher income from investments in Indonesia by the Equity division. Due in part to lower gains on the sale of real estate, Siemens Real Estate (SRE) recorded earnings before income taxes of €55 million, down from €88 million in the same quarter a year earlier.

International trends for the first quarter of fiscal 2003

Orders in Germany were €4.661 billion, down 10% compared to the same period a year earlier. Sales in Germany decreased 5% to €4.204 billion. Excluding deconsolidation effects, sales in Germany edged down 2%. International orders dropped 23% to €15.484 billion year-over-year, while international sales of €14.641 billion declined 12% year-over-year. Excluding currency and deconsolidation effects, international orders slid 15% and international sales decreased 2%.

Orders in the U.S. for the first quarter fell 36% to €3.965 billion and sales dropped 24% to €3.903 billion compared to the prior-year quarter, including negative effects from currency of 8% and 9%, respectively. In Asia-Pacific, first-quarter orders fell 34% to €2.146 billion and sales fell 14% year-over-year, to €2.066 billion, due in part to the deconsolidation of Infineon and currency effects. Excluding the Infineon and currency effects, orders and sales fell 25% and 3%, respectively. While China continued to account for the largest share of sales in the region, contributing €643 million in the quarter, that level was 23% below the same period a year earlier.

Income Statement highlights

Net sales for Siemens worldwide were €18.845 billion in the first quarter, compared to €20.986 billion in the same period a year earlier. Net income for Siemens worldwide of €521 million includes a positive €36 million effect as a result of Siemens’ adoption of SFAS 143, “Accounting for Asset Retirement Obligations.” The Consolidated Statements of Income no longer include a separate column for Infineon, as it was deconsolidated in the prior fiscal year.

Turning to Operations, net sales were €18.688 billion, down from €20.403 billion year-over-year, as significant sales declines occurred at major groups including ICN, ICM and PG. The effects of currency translation reduced net sales from Operations in the current period by 4%. Gross profit margin increased to 27.6%, compared to 27.3% in the first quarter of fiscal 2002, despite higher inventory allowances, particularly at PG. Research and development expense rose to 6.9% of sales, compared to 6.8% in the first quarter a year earlier. Marketing, selling, and general administration expense edged up to 18.4% of sales from 18.3% a year ago. Other operating income (expense) was €197 million, compared to €47 million in the first quarter of fiscal 2002.

Liquidity and balance sheet highlights for the first quarter of fiscal 2003

Net cash from operating and investing activities for the first quarter of the fiscal 2003 was negative €1.137 billion. Operating activities used net cash of €685 million, which includes €442 million in supplemental cash contributions to Siemens’ pension trusts in Germany and the U.K. An additional €377 million in real estate was also transferred to the Siemens German Pension Trust in the first quarter. These contributions bring Siemens’ supplemental pension funding for the last two quarters to €2.601 billion. The current period reflects a substantial decrease in other current liabilities due to lower customer prepayments at PG and TS. Reflecting a planned, ongoing phase-out of sales of accounts receivable, the decrease in outstanding balance of receivables sold was €458 million in the current period, compared to a decrease of €86 million in the first quarter of last year.

Net cash used in investing activities was €452 million compared to net cash provided of €393 million in the first quarter of last year. The current period reflects significantly lower cash outlays for capital expenditures compared to the prior year. Proceeds from sales and dispositions of businesses were €52 million compared to €1.272 billion in the first quarter of last year, which included €716 million related to the sale of Mannesmann Sachs AG and €556 million from the sale of shares in Infineon.

Net cash used in financing activities was €995 million. Within that total was €727 million in repayment of debt, including the buyback of €500 million of a €2.500 billion Infineon exchangeable bond. The net change in short-term debt was a reduction of €450 million.

Total assets decreased to €75.940 billion from €77.939 billion at September 30, 2002 due primarily to currency effects.

Economic Value Added

Siemens worldwide generated EVA of €66 million in the first quarter of fiscal 2003, compared to an EVA of €71 million in the same period a year ago, which included a gain on sales of shares in Infineon.

•

Siemens CFO Heinz-Joachim Neubürger will hold an English-language telephone conference with analysts on January 23, 2003 at 8:30 a.m. CET. You can follow this conference live on the Internet by going to www.siemens.com/analystcall. A recording of the telephone conference will be available later at the same location.

This press release report contains forward-looking statements based on beliefs of Siemens’ management. The words “anticipate,” “believe,” “estimate,” “forecast,” “expect,” “intend,” “plan”, “should” and “project” are used to identify forward-looking statements. Such statements reflect the company’s current views with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results to be materially different, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services and changes in business strategy. Actual results may vary materially from those projected here. Siemens does not intend or assume any obligation to update these forward-looking statements.


Siemens AG Corporate Communications Press Department 80333 Munich		Informationsnummer: AXX200301.15 e Miriam Steffens 80333 München Tel.: +49-89 636-34794; Fax: -32825 E-mail: miriam.steffens@siemens.com

SIEMENS-LOGO

Key figures


		1st quarter⁽¹⁾

		2003			2002

Net income⁽²⁾
(in millions of euros)			521			538
*therein: Net income effect related to Infineon*⁽³⁾			*(17*	)		157

Earnings per share
(in euros)			0.59			0.61

Net cash from operating and investing activities			(1,137	)		307
(in millions of euros)
*therein: Net cash used in operating activities*
	*Net cash (used in) provided by investing activities*		*(685*	)		(86	)
	*Supplemental contributions to pension trusts* (included in net cash from operating		*(452*	)		393
	activities)		*(442*	)		—
	*Proceeds from portfolio activities* (included in net cash from investing activities)		52			1,272

EBIT from Operations
(in millions of euros)			604			487

New orders⁽⁴⁾
(in millions of euros)			20,145			25,390

Sales⁽⁴⁾
(in millions of euros)			18,845			20,986


		December 31, 2002		September 30, 2002

Employees (in thousands)			423		426
	Germany		175		175
	International		248		251

(1)		October 1 — December 31.
(2)		Includes a positive effect of €36 million (or €0.04 per share) due to the adoption of SFAS 143, Accounting for Asset Retirement Obligations.
(3)		Represents the share of loss from the ownership in Infineon during the respective periods. Beginning December 5, 2001 Infineon is accounted for under the equity method of accounting and is no longer consolidated in the financial statements of Siemens. For fiscal 2002, the amount includes a gain from the sale of Infineon shares.
(4)		In fiscal year 2002, Infineon’s orders and sales are included only for the approximately two months in which Infineon was consolidated in the financial statements of Siemens.

SIEMENS AG
SEGMENT INFORMATION (unaudited)
As of and for the three months ended December 31, 2002 and 2001 and as of September 30, 2002
(in millions of €)


													Intersegment
			New orders						External sales				sales						Total sales						EBIT

			2003			2002			2003		2002		2003			2002			2003			2002			2003			2002

Operations
	Information and Communication Networks (ICN)			1,940			2,627			1,714		2,437		90			103			1,804			2,540			(151	)		(124	)
	Information and Communication Mobile (ICM)			2,509			3,318			2,828		3,093		28			34			2,856			3,127			59			37
	Siemens Business Services (SBS)			1,394			1,900			974		1,072		293			395			1,267			1,467			12			32
	Automation and Drives (A&D)			2,234			2,365			1,683		1,692		299			266			1,982			1,958			179			173
	Industrial Solutions and Services (I&S)			1,067			1,165			729		813		200			227			929			1,040			(33	)		2
	Siemens Dematic (SD)			612			763			589		793		33			11			622			804			12			11
	Siemens Building Technologies (SBT)			1,254			1,397			1,155		1,243		51			69			1,206			1,312			43			45
	Power Generation (PG)			2,270			4,093			1,767		2,129		18			5			1,785			2,134			409			302
	Power Transmission and Distribution (PTD)			1,109			1,649			757		934		45			68			802			1,002			40			20
	Transportation Systems (TS)			1,100			1,853			1,076		958		4			3			1,080			961			68			50
	Siemens VDO Automotive (SV)			2,133			2,023			2,130		2,027		3			—			2,133			2,027			73			(6	)
	Medical Solutions (Med)			1,958			1,970			1,815		1,765		16			5			1,831			1,770			245			212
	Osram			1,123			1,099			1,118		1,054		5			45			1,123			1,099			106			78
	Corporate, eliminations			(1,091	)		(1,846	)		335		344		(1,067	)		(1,182	)		(732	)		(838	)		(458	)		(345	)

		Total Operations		19,612			24,376			18,670		20,354		18			49			18,688			20,403			604			487
Reconciliation to financial statements				—			—			—		—		—			—			—			—			—			—
	Other interest expense			—			—			—		—		—			—			—			—			(2	)		(66	)
	Gains on sales and dispositions of significant business interests			—			—			—		—		—			—			—			—			—			332

		Operations income before income taxes/total assets		—			—			—		—		—			—			—			—			602			753


																									Income before
																									income taxes

Financing and Real Estate
	Siemens Financial Services (SFS)			136			122			109		94		27			27			136			121			84			42
	Siemens Real Estate (SRE)			396			397			65		48		331			349			396			397			55			88
	Eliminations			—			—			—		—		(4	)		(2	)		(4	)		(2	)		—			—

		Total Financing and Real Estate		532			519			174		142		354			374			528			516			139			130

Eliminations, reclassifications and Corporate Treasury				1			495			1		490		(372	)		(423	)		(371	)		67			73			(325	)

Siemens worldwide				20,145			25,390			18,845		20,986		—			—			18,845			20,986			814			558

[Additional columns below]

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


									Net cash from											Amortization,
			Net capital						operating and						Capital					depreciation and
			employed						investing activities						spending⁽¹⁾					impairments⁽²⁾

			12/31/02			9/30/02			2003			2002			2003			2002		2003		2002

Operations
	Information and Communication Networks (ICN)			905			1,100			33			(187	)		35			134		111		134
	Information and Communication Mobile (ICM)			2,141			1,973			(112	)		(396	)		73			69		72		82
	Siemens Business Services (SBS)			371			264			(101	)		(88	)		37			39		61		72
	Automation and Drives (A&D)			2,208			2,197			163			(13	)		39			47		55		56
	Industrial Solutions and Services (I&S)			288			315			(43	)		(100	)		12			16		12		11
	Siemens Dematic (SD)			1,071			975			(89	)		(63	)		9			16		15		15
	Siemens Building Technologies (SBT)			1,802			1,778			(36	)		(84	)		23			38		35		36
	Power Generation (PG)			296			(144	)		(46	)		399			56			61		32		36
	Power Transmission and Distribution (PTD)			926			928			58			(18	)		12			21		16		18
	Transportation Systems (TS)			(505	)		(741	)		(161	)		76			28			45		15		11
	Siemens VDO Automotive (SV)			3,902			3,746			(84	)		(43	)		180			95		89		85
	Medical Solutions (Med)			3,495			3,414			(20	)		167			74			94		50		47
	Osram			2,316			2,436			145			(11	)		67			86		69		70
	Corporate, eliminations			(1,103	)		(2,486	)		(944	)⁽³⁾		735	⁽³⁾		(16	)		5		52		10

		Total Operations		18,113			15,755			(1,237	)		374			629			766		684		683
Reconciliation to financial statements				46,575			51,944			—			—			—			—		—		—
	Other interest expense			—			—			—			—			—			—		—		—
	Gains on sales and dispositions of significant business interests			—			—			—			—			—			—		—		—

		Operations income before income taxes/total assets		64,688			67,699			—			—			—			—		—		—


			Total assets

Financing and Real Estate
	Siemens Financial Services (SFS)			8,588			8,681			(157	)		299			42			70		54		60
	Siemens Real Estate (SRE)			3,900			4,090			50			24			28			44		48		51
	Eliminations			(576	)		(561	)		(50	)⁽³⁾		(42	)⁽³⁾		—			—		—		—

		Total Financing and Real Estate		11,912			12,210			(157	)		281			70			114		102		111

Eliminations, reclassifications and Corporate Treasury				(660	)		(1,970	)		257	⁽³⁾		(348	)⁽³⁾		—			214		—		209

Siemens worldwide				75,940			77,939			(1,137	)		307			699			1,094		786		1,003

(1)		Intangible assets, property, plant and equipment, acquisitions, and investments.
(2)		Includes amortization and impairments of intangible assets, depreciation of property, plant and equipment, and write-downs of investments.
(3)		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.

SIEMENS AG
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the three months ended December 31, 2002 and 2001
(in millions of €, per share amounts in €)


								Eliminations,
								reclassifications and												Financing and Real
		Siemens worldwide						Corporate Treasury⁽³⁾						Operations						Estate

		2003			2002			2003			2002			2003			2002			2003			2002

Net sales			18,845			20,986			(371	)		67			18,688			20,403			528			516
Cost of sales			(13,563	)		(15,344	)		372			(144	)		(13,535	)		(14,824	)		(400	)		(376	)

Gross profit on sales			5,282			5,642			1			(77	)		5,153			5,579			128			140
Research and development expenses			(1,295	)		(1,547	)		—			(168	)		(1,295	)		(1,379	)		—			—
Marketing, selling and general administrative expenses			(3,508	)		(3,901	)		(1	)		(87	)		(3,436	)		(3,742	)		(71	)		(72	)
Other operating income (expense), net			215			391			(16	)		304			197			47			34			40
Income (loss) from investments in other companies, net			4			(22	)		—			(17	)		(18	)		(8	)		22			3
Income (expense) from financial assets and marketable securities, net			27			(29	)		31			(39	)		(10	)		8			6			2
Interest income (expense) of Operations, net			13			(18	)		—			—			13			(18	)		—			—

	EBIT⁽¹⁾ from Operations		—			—			—			—			604			487			—			—
Other interest income (expense), net			76			42			58			91			(2	)		(66	)		20			17
Gains on sales and dispositions of significant business interests			—			—			—			(332	)		—			332			—			—

	Income (loss) before income taxes		814			558			73			(325	)		602			753			139			130
Income taxes⁽²⁾			(302	)		(97	)		(27	)		138			(223	)		(200	)		(52	)		(35	)
Minority interest			(27	)		77			—			2			(27	)		75			—			—

	Income (loss) before cumulative effect of change in accounting principle		485			538			46			(185	)		352			628			87			95
Cumulative effect of change in accounting principle, net of income taxes			36			—			—			—			39			—			(3	)		—

	Net income (loss)		521			538			46			(185	)		391			628			84			95

Basic earnings per share
	Income before cumulative effect of change in accounting principle		0.55			0.61
	Cumulative effect of change in accounting principle, net of income taxes		0.04			—

	Net income		0.59			0.61

Diluted earnings per share
	Income before cumulative effect of change in accounting principle		0.55			0.61
	Cumulative effect of change in accounting principle, net of income taxes		0.04			—

	Net income		0.59			0.61

(1)		EBIT is measured as earnings before financing interest, income taxes and certain one-time items. Interest income related to receivables from customers, cash allocated to the segments and interest expense on payables to suppliers are part of EBIT.
(2)		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 corresponding figures for fiscal 2002 are calculated based on the consolidated effective corporate tax rate excluding Infineon.
(3)		As of December 5, 2001, Siemens deconsolidated Infineon. The results of operations from Infineon for the first two months of the fiscal year 2002 are included in Eliminations, reclassifications and Corporate Treasury. As of December 5, 2001, the share in earnings from Infineon is included in “Income (loss) from investments in other companies, net” in Operations.

SIEMENS AG
CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited)
For the three months ended December 31, 2002 and 2001
(in millions of €)


										Eliminations,
										reclassifications and												Financing and Real
				Siemens worldwide						Corporate Treasury						Operations						Estate

				2003			2002			2003			2002			2003			2002			2003			2002

Cash flows from operating activities
	Net income				521			538			46			(185	)		391			628			84			95
	Adjustments to reconcile net income to cash provided
		Minority interest			27			(77	)		—			(2	)		27			(75	)		—			—
		Amortization, depreciation and impairments			786			1,003			—			209			684			683			102			111
		Deferred taxes			22			(235	)		—			(183	)		23			(45	)		(1	)		(7	)
		Gains on sales and disposals of businesses and property, plant and equipment, net			(27	)		(361	)		—			(332	)		(13	)		(2	)		(14	)		(27	)
		Losses (gains) on sales of investments, net			2			(16	)		—			7			2			(23	)		—			—
		Gains on sales and dispositions of significant business interests			—			—			—			332			—			(332	)		—			—
		(Gains) losses on sales and impairments of marketable securities, net			(1	)		2			—			—			(1	)		2			—			—
		(Income) loss from equity investees, net of dividends received			(33	)		33			—			16			(17	)		16			(16	)		1
		Change in current assets and liabilities
			(Increase) decrease in inventories, net		(530	)		89			—			86			(523	)		(91	)		(7	)		94
			(Increase) decrease in accounts receivable, net		(126	)		(61	)		(33	)		291			(89	)		(320	)		(4	)		(32	)
			Increase (decrease) in outstanding balance of receivables sold		(458	)		(86	)		(243	)		(86	)		(215	)		—			—			—
			(Increase) decrease in other current assets		(164	)		(62	)		(42	)		(215	)		(90	)		190			(32	)		(37	)
			Increase (decrease) in accounts payable		(574	)		(1,206	)		(9	)		(354	)		(570	)		(919	)		5			67
			Increase (decrease) in accrued liabilities		255			(353	)		—			(25	)		275			(342	)		(20	)		14
			Increase (decrease) in other current liabilities		(276	)		488			296			341			(433	)		108			(139	)		39
		Supplemental contribution to pension trusts			(442	)		—			—			—			(442	)		—			—			—
		Change in other assets and liabilities			333			218			165			48			160			181			8			(11	)

			Net cash (used in) provided by operating activities		(685	)		(86	)		180			(52	)		(831	)		(341	)		(34	)		307
Cash flows from investing activities
	Additions to intangible assets and property, plant and equipment				(597	)		(949	)		—			(149	)		(528	)		(688	)		(69	)		(112	)
	Acquisitions, net of cash acquired				(33	)		(22	)		—			—			(33	)		(22	)		—			—
	Purchases of investments				(69	)		(123	)		—			(65	)		(68	)		(56	)		(1	)		(2	)
	Purchases of marketable securities				(13	)		(14	)		(11	)		—			(2	)		(14	)		—			—
	Increase in receivables from financing activities				(53	)		(90	)		(170	)		(168	)		—			—			117			78
	Increase (decrease) in outstanding balance of receivables sold by SFS				—			—			243			86			—			—			(243	)		(86	)
	Proceeds from sales of long-term investments, intangibles and property, plant and equipment				235			299			—			—			162			207			73			92
	Proceeds from sales and dispositions of businesses				52			1,272			—			—			52			1,272			—			—
	Proceeds from sales of marketable securities				26			20			15			—			11			16			—			4

			Net cash (used in) provided by investing activities		(452	)		393			77			(296	)		(406	)		715			(123	)		(26	)
Cash flows from financing activities
	Proceeds from issuance of capital stock				—			1			—			—			—			1			—			—
	Proceeds from issuance of debt				202			55			202			55			—			—			—			—
	Repayment of debt				(727	)		—			(727	)		—			—			—			—			—
	Change in short-term debt				(450	)		655			(455	)		763			37			(86	)		(32	)		(22	)
	Change in restricted cash				—			(2	)		—			(2	)		—			—			—			—
	Dividends paid to minority shareholders				(20	)		(40	)		—			—			(20	)		(40	)		—			—
	Intracompany financing				—			—			(1,483	)		240			1,309			(12	)		174			(228	)

			Net cash (used in) provided by financing activities		(995	)		669			(2,463	)		1,056			1,326			(137	)		142			(250	)
Effect of deconsolidation of Infineon on cash and cash equivalents					—			(383	)		—			(383	)		—			—			—			—
Effect of exchange rates on cash and cash equivalents					(119	)		57			(94	)		29			(24	)		27			(1	)		1
Net increase (decrease) in cash and cash equivalents					(2,251	)		650			(2,300	)		354			65			264			(16	)		32
Cash and cash equivalents at beginning of period					11,196			7,802			10,269			6,860			873			907			54			35

Cash and cash equivalents at end of period					8,945			8,452			7,969			7,214			938			1,171			38			67

SIEMENS AG
CONSOLIDATED BALANCE SHEETS (unaudited)
As of December 31, 2002 and September 30, 2002
(in millions of €)


									Eliminations,
									reclassifications and										Financing and Real
			Siemens worldwide						Corporate Treasury						Operations				Estate

			12/31/02			9/30/02			12/31/02			9/30/02			12/31/02		9/30/02		12/31/02		9/30/02

ASSETS
Current assets
	Cash and cash equivalents			8,945			11,196			7,969			10,269			938		873		38		54
	Marketable securities			481			399			21			25			443		356		17		18
	Accounts receivable, net			15,560			15,230			(9	)		(7	)		12,114		12,058		3,455		3,179
	Intracompany receivables			—			—			(9,820	)		(13,284	)		9,746		13,209		74		75
	Inventories, net			10,903			10,672			(24	)		(5	)		10,837		10,592		90		85
	Deferred income taxes			1,166			1,212			79			64			1,082		1,143		5		5
	Other current assets			5,941			5,353			1,202			1,028			3,666		3,306		1,073		1,019

		Total current assets		42,996			44,062			(582	)		(1,910	)		38,826		41,537		4,752		4,435

Long-term investments				5,040			5,092			—			2			4,737		4,797		303		293
Goodwill				6,358			6,459			—			—			6,271		6,369		87		90
Other intangible assets, net				2,275			2,384			—			—			2,252		2,362		23		22
Property, plant and equipment, net				11,305			11,742			1			2			7,472		7,628		3,832		4,112
Deferred income taxes				3,614			3,686			829			764			2,631		2,771		154		151
Other assets				4,352			4,514			93			103			1,498		1,304		2,761		3,107
Other intracompany receivables				—			—			(1,001	)		(931	)		1,001		931		—		—

		Total assets		75,940			77,939			(660	)		(1,970	)		64,688		67,699		11,912		12,210

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
	Short-term debt and current maturities of long-term debt			1,659			2,103			628			1,143			877		785		154		175
	Accounts payable			7,929			8,649			(5	)		6			7,742		8,453		192		190
	Intracompany liabilities			—			—			(7,900	)		(7,776	)		2,245		1,799		5,655		5,977
	Accrued liabilities			9,785			9,608			30			18			9,498		9,445		257		145
	Deferred income taxes			657			661			(249	)		(206	)		670		647		236		220
	Other current liabilities			13,077			13,691			417			375			12,338		12,853		322		463

		Total current liabilities		33,107			34,712			(7,079	)		(6,440	)		33,370		33,982		6,816		7,170

Long-term debt				10,084			10,243			8,816			6,833			841		2,974		427		436
Pension plans and similar commitments				4,844			5,326			—			—			4,819		5,299		25		27
Deferred income taxes				197			195			(17	)		(50	)		98		119		116		126
Other accruals and provisions				3,387			3,401			28			28			3,062		3,068		297		305
Other intracompany liabilities				—			—			(2,408	)		(2,341	)		177		45		2,231		2,296

				51,619			53,877			(660	)		(1,970	)		42,367		45,487		9,912		10,360

Minority interests				518			541			—			—			518		541		—		—
Shareholders’ equity
	Common stock, no par value
		Authorized: 1,145,917,515 and 1,145,917,335 shares, respectively
		Issued: 890,374,181 and 890,374,001 shares, respectively		2,671			2,671
	Additional paid-in capital			5,053			5,053
	Retained earnings			21,992			21,471
	Accumulated other comprehensive income (loss)			(5,811	)		(5,670	)
	Treasury stock, at cost. 2,156,495 and 49,864 shares, respectively			(102	)		(4	)

		Total shareholders’ equity		23,803			23,521			—			—			21,803		21,671		2,000		1,850

		Total liabilities and shareholders’ equity		75,940			77,939			(660	)		(1,970	)		64,688		67,699		11,912		12,210

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


	/s/ CHARLES HERLINGER

	Charles Herlinger Vice President and Corporate Controller


	/s/ DANIEL SATTERFIELD

	Daniel Satterfield Director of External Reporting

Date: January 23, 2003

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