e6vk
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
August 4, 2008
Commission File Number: 1-15174
Siemens Aktiengesellschaft
(Translation of registrants name into English)
Wittelsbacherplatz 2
D-80333 Munich
Federal Republic of Germany
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form
20-F or Form 40-F.
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
Yes o No þ
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
Yes o No þ
Indicate by check mark whether by furnishing the information contained in this Form, the registrant
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes o No þ
If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82-
Table of contents
Introduction
Siemens AGs Interim Report complies with the applicable legal requirements of the Securities
Trading Act (Wertpapierhandelsgesetz WpHG) regarding the quarterly financial report, and
comprises Interim Consolidated Financial Statements and an interim group management report in
accordance with § 37x (3) WpHG. The Interim Consolidated Financial Statements have been prepared in
accordance with International Financial Reporting Standards (IFRS) and its interpretations issued
by the International Accounting Standards Board (IASB), as adopted by the European Union (EU). The
Interim Consolidated Financial Statements also comply with IFRS as issued by the IASB. This Interim
Report should be read in conjunction with our Annual Report, which includes detailed analysis of
our operations and activities.
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.
1
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Key figures(1)
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Q3 and first nine months
of fiscal 2008(2) |
(unaudited; in millions of , except where otherwise stated)
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% Change |
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1st nine months |
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% Change |
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Profit and growth
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Q3 2008 |
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Q3 2007 |
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Actual |
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Adjusted(3) |
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2008 |
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2007 |
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Actual |
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Adjusted(3) |
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Continuing operations |
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New orders |
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23,677 |
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19,494 |
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21 |
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26 |
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71,290 |
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62,588 |
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14 |
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17 |
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Revenue |
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19,182 |
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17,517 |
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10 |
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13 |
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55,676 |
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52,247 |
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7 |
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8 |
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Total
Sectors |
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Profit
Total Sectors |
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2,084 |
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1,571 |
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33 |
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5,035 |
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4,670 |
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8 |
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in
% of revenue (Total Sectors) |
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11.6 |
% |
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9.8 |
% |
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9.8 |
% |
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9.8 |
% |
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EBITDA
(adjusted) |
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2,520 |
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1,953 |
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29 |
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6,330 |
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5,750 |
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10 |
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in
% of revenue (Total Sectors) |
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14.1 |
% |
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12.2 |
% |
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12.3 |
% |
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12.1 |
% |
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Continuing operations
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EBITDA
(adjusted) |
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2,562 |
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1,822 |
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41 |
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6,064 |
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5,297 |
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14 |
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Income from continuing operations |
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1,475 |
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608 |
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143 |
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3,118 |
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2,515 |
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24 |
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Basic earnings per share (in euros)(4) |
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1.61 |
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0.64 |
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152 |
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3.33 |
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2.68 |
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24 |
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Continuing
and discontinued operations (5) |
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Net income |
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1,419 |
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2,065 |
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(31 |
) |
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8,306 |
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4,112 |
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102 |
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Basic earnings per share (in euros)(4) |
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1.55 |
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2.25 |
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(31 |
) |
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9.07 |
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4.43 |
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105 |
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1st nine months |
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Return on capital employed |
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Q3 2008 |
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Q3 2007 |
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2008 |
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2007 |
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Continuing operations |
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Return on capital employed (ROCE) |
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14.7 |
% |
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7.6 |
% |
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10.7 |
% |
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11.2 |
% |
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Continuing
and discontinued
operations (5) |
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Return on capital employed (ROCE) |
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14.0 |
% |
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20.7 |
% |
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27.2 |
% |
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15.2 |
% |
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Free
cash flow |
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1st nine months |
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Cash conversion |
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Q3 2008 |
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Q3 2007 |
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2008 |
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2007 |
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Total
Sectors |
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Free cash flow |
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1,714 |
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1,761 |
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4,601 |
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4,252 |
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Cash conversion |
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0.82 |
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1.12 |
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0.91 |
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0.91 |
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Continuing operations |
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Free cash flow |
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1,547 |
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1,943 |
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2,953 |
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4,202 |
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Cash conversion |
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1.05 |
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3.20 |
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0.95 |
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1.67 |
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Continuing
and discontinued
operations (5)
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Free cash flow |
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1,442 |
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743 |
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2,138 |
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1,478 |
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Cash conversion |
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1.02 |
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0.36 |
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0.26 |
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0.36 |
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June 30, 2008
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September 30, 2007
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Employees
(in thousands) |
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Cont. Op. |
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Total(6) |
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Cont. Op. |
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Total(6)
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Employees |
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424 |
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|
440 |
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|
398 |
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|
471 |
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Germany |
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131 |
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|
137 |
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126 |
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|
152 |
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Outside Germany |
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293 |
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|
303 |
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|
272 |
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|
319 |
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(1) |
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EBITDA (adjusted), Return on capital employed (ROCE),
Return on equity (ROE), Free cash flow and Cash
conversion rate are non-GAAP financial measures. Information for a reconciliation of these amounts to
the most directly comparable IFRS financial measures is available on our Investor Relations website
under www.siemens.com/ir, Financial Publications. Profit of the
Sectors as well as of SEI, Siemens IT Solutions and Services and
Other Operations is reconciled to Income before income taxes in
the table Segment Information. Profit of SFS and SRE is
Income before income taxes. |
|
(2) |
|
April 1 June 30, 2008 and October 1, 2007
June 30, 2008. |
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(3) |
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Adjusted for portfolio and currency translation effects. |
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(4) |
|
Earnings per share attributable to shareholders of
Siemens AG. For fiscal 2008 and 2007
weighted average shares outstanding (basic) (in thousands) for the
third quarter amounted to
888,154 and 898,635 respectively and for the first nine months to
902,856 and 894,624 shares respectively. |
|
(5) |
|
Discontinued operations consist of Siemens VDO Automotive activities as well as of carrier
networks, enterprise networks and mobile devices activities. |
|
(6) |
|
Continuing and discontinued operations. |
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(7) |
|
Return on equity is calculated as annualized Income before
income taxes of Q3 divided by Average allocated equity for the first
nine months of fiscal 2008 (875 million). |
Interim group management report
Overview of financial results for the third quarter of fiscal 2008
In the third quarter of fiscal 2008, we reached a number of important milestones on our
reorganization path. We believe that Siemens is becoming faster, more efficient and more focused as
a company, with the timely and entrepreneurial approach that is required to remain on this course.
Orders rose 21%, to 23.677 billion, and revenue increased 10%, to 19.182 billion.
These results
include negative currency translation effects of 7 percentage points on orders and 6 percentage
points on revenue. On an organic basis, excluding the net effect of currency translation and
portfolio transactions, orders rose 26% and revenue increased 13% compared to the third quarter a
year earlier. Order growth was well-balanced, with double-digit expansion in all Sectors. Revenue
growth included double-digit increases in Energy and Healthcare and 8% growth in Siemenss largest
Sector, Industry. The region comprising Europe, the Commonwealth of Independent States (C.I.S.) and
Africa contributed 40% order growth and 12% revenue growth in the third quarter, including
unusually large orders in Industry and Energy. Due in part to these large orders, the book-to-bill
ratio for the quarter was 1.23.
Profit Total Sectors climbed 33%, to 2.084 billion, on rising revenue and higher profit
margin.
Growth in Profit Total Sectors a measure combining profit from the Industry, Energy and
Healthcare Sectors rose on particular strength in the Industry and Energy Sectors. Within
Industry, the leading profit performers were the two Divisions created out of the former A&D Group:
Industry Automation and Drive Technologies. Sector profit for Industry included a gain of 113
million on the sale of the wireless modules business in the Industry Automation Division. Sector
Profit growth within Energy featured strong contributions from the two new Divisions created out of
the former PTD Group: Power Transmission and Power Distribution. Siemens Healthcare Sector
contributed 6% growth in Sector profit and sustained its profitability despite challenging market
conditions.
Income from continuing operations rose strongly, to 1.475 billion, driven by higher Total Sectors
profit.
Basic earnings per share (EPS) from continuing operations rose correspondingly, to 1.61
from 0.64 a year earlier. The primary factor in these increases was growth in Total Sectors
profit. In addition, Strategic Equity Investments (SEI) posted
profit of positive 1 million compared to a
loss of 301 million in the third quarter a year earlier. The main reason for this change was
significant progress at Nokia Siemens Networks B.V. (NSN), which improved its operating result and
reduced restructuring and integration costs compared to the prior-year quarter. Siemens two
Cross-Sector Businesses, Siemens Financial Services (SFS) and Siemens IT Solutions and Services,
contributed 123 million in profit, unchanged year-over-year. In addition, expenses for legal and
regulatory matters were lower in the current quarter.
Net income was 1.419 billion. Prior-year net income of 2.065 billion
benefited from a substantial
gain within discontinued operations.
Basic EPS for Siemens in the third quarter was 1.55 compared
to 2.25 in the prior-year period. The comparison year-over-year is strongly influenced by
discontinued operations, which posted a loss of 56 million in the current period in contrast to
income of 1.457 billion in the prior-year period. The major factors in the latter result were a
preliminary pre-tax non-cash gain of 1.7 billion resulting from the transfer of Siemens
telecommunications carrier business into NSN and positive operating results at Siemens
VDO Automotive (SV), only partly offset by an impairment of the enterprise networks business in the
pre-tax amount of 355 million.
Free cash flow was 1.547 billion and the Cash conversion rate was above target.
For comparison,
free cash flow of 1.943 billion in the prior-year quarter benefited from a positive effect of
approximately 1.1 billion related to the carve-out of SV, only partly offset by a 419 million
penalty payment related to a European Union antitrust investigation. The Cash conversion rate for
continuing operations in the third quarter was 1.05, above the target for the quarter.
2
ROCE for the first nine months of fiscal 2008 was 10.7%.
On a continuing basis, return on capital
employed (ROCE) declined to 10.7% from 11.2% in the first nine months a year earlier. ROCE
development in the current period was affected by a substantial increase in capital employed
stemming from major acquisitions in fiscal 2008 and fiscal 2007. This effect more than offset
higher income from continuing operations in the current period, and will continue through the
current fiscal year.
Expenses for compliance investigations declined from the second-quarter level.
Expenses for outside
advisors engaged in connection with investigations into alleged violations of anti-corruption laws
and related matters as well as remediation activities were 119 million in the third quarter, down
from 175 million in the second quarter of fiscal 2008. The total for continuing operations in the
current quarter was 106 million, with the remaining 13 million related to discontinued
operations. In the third quarter a year earlier, these costs totaled 125 million, including 54
million in continuing operations and 71 million in discontinued operations. For more information
regarding these matters see Notes to Interim Consolidated Financial Statements.
Completing the second tranche of Siemens share buyback program raised total purchases to 4.0
billion.
The second share buyback tranche totaled 2.0 billion in purchases for 27,916,664 shares,
and we completed it after the close of the quarter on July 22, 2008. The first tranche of the
program, in the amounts of 2.0 billion and 24,854,541 shares, was completed at the beginning of
the quarter, on April 8, 2008. Taking both tranches together, we spent a total of approximately
1.3 billion under the share repurchase program in the third quarter. For further information, see
Liquidity, capital resources and capital requirements below.
3
Results of Siemens
Results of Siemens Third quarter of fiscal 2008
The following discussion presents selected information for Siemens for the third quarter of
fiscal 2008:
Orders were 23.677 billion in the third quarter, up 21% from the prior-year period, while
revenue rose 10% year-over-year, to 19.182 billion. On an organic basis, excluding currency
translation and portfolio effects, orders increased 26% year-over-year and revenue rose 13%.
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New Orders (location of customer) |
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% Change |
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|
|
Third quarter |
|
|
vs. previous year |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
Currency |
|
|
Portfolio |
|
Europe, C.I.S.**, Africa |
|
|
12,827 |
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|
9,188 |
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|
40 |
% |
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|
42 |
% |
|
|
(4) |
% |
|
|
2 |
% |
therein Germany |
|
|
3,328 |
|
|
|
2,780 |
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|
20 |
% |
|
|
19 |
% |
|
|
0 |
% |
|
|
1 |
% |
Americas |
|
|
6,136 |
|
|
|
5,578 |
|
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|
10 |
% |
|
|
21 |
% |
|
|
(15) |
% |
|
|
4 |
% |
therein
U.S. |
|
|
4,576 |
|
|
|
4,188 |
|
|
|
9 |
% |
|
|
24 |
% |
|
|
(19) |
% |
|
|
4 |
% |
Asia, Australia, Middle East |
|
|
4,714 |
|
|
|
4,728 |
|
|
|
0 |
% |
|
|
2 |
% |
|
|
(5) |
% |
|
|
3 |
% |
therein China |
|
|
1,455 |
|
|
|
1,420 |
|
|
|
2 |
% |
|
|
3 |
% |
|
|
(3) |
% |
|
|
2 |
% |
therein India |
|
|
643 |
|
|
|
601 |
|
|
|
7 |
% |
|
|
11 |
% |
|
|
(11) |
% |
|
|
7 |
% |
Siemens |
|
|
23,677 |
|
|
|
19,494 |
|
|
|
21 |
% |
|
|
26 |
% |
|
|
(7) |
% |
|
|
2 |
% |
|
|
|
* |
|
Excluding currency translation and portfolio effects. |
|
** |
|
Commonwealth of Independent States. |
Order growth in the third quarter was well-balanced, with double-digit expansion in all
Sectors. On a geographic basis, orders grew 40% in Siemens largest region, which includes Europe,
the Commonwealth of Independent States (C.I.S.) and Africa. Large
orders in the Industry Sector and the
Energy Sector contributed strongly to the increase. In the Americas, orders rose 10%, despite
strong negative currency translation effects of 15%. On an organic basis, orders in the Americas
climbed 21%, in part due to an exceptionally large order in the U.S. in the Energy Sector. Orders
for the region consisting of Asia, Australia and the Middle East were nearly the same
year-over-year, despite a higher level of large orders in the prior-year period. China and India
continued to expand more rapidly than the region as a whole.
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|
Revenue (location of customer) |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
Third quarter |
|
|
vs. previous year |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
Currency |
|
|
Portfolio |
|
Europe, C.I.S.**, Africa |
|
|
10,303 |
|
|
|
9,200 |
|
|
|
12 |
% |
|
|
12 |
% |
|
|
(2) |
% |
|
|
2 |
% |
therein Germany |
|
|
3,260 |
|
|
|
2,871 |
|
|
|
14 |
% |
|
|
13 |
% |
|
|
0 |
% |
|
|
1 |
% |
Americas |
|
|
4,935 |
|
|
|
4,706 |
|
|
|
5 |
% |
|
|
15 |
% |
|
|
(14) |
% |
|
|
4 |
% |
therein U.S. |
|
|
3,617 |
|
|
|
3,764 |
|
|
|
(4) |
% |
|
|
7 |
% |
|
|
(15) |
% |
|
|
4 |
% |
Asia, Australia, Middle East |
|
|
3,944 |
|
|
|
3,611 |
|
|
|
9 |
% |
|
|
12 |
% |
|
|
(6) |
% |
|
|
3 |
% |
therein China |
|
|
1,213 |
|
|
|
976 |
|
|
|
24 |
% |
|
|
26 |
% |
|
|
(4) |
% |
|
|
2 |
% |
therein India |
|
|
491 |
|
|
|
370 |
|
|
|
33 |
% |
|
|
37 |
% |
|
|
(16) |
% |
|
|
12 |
% |
Siemens |
|
|
19,182 |
|
|
|
17,517 |
|
|
|
10 |
% |
|
|
13 |
% |
|
|
(6) |
% |
|
|
3 |
% |
|
|
|
* |
|
Excluding currency translation and portfolio effects. |
|
** |
|
Commonwealth of Independent States. |
Revenue growth in the third quarter included double-digit increases in the Energy and the
Healthcare Sectors and 8% growth in Siemenss largest Sector, Industry. On a geographic basis,
revenue rose 12% in the Europe, C.I.S., Africa region, on particular strength in Energy and
Healthcare. The Americas, supported by a strong Energy Sector, contributed a 5% increase in
reported revenue, even with currency translation effects taking 14 percentage points from growth.
On broad-based growth in the Industry Sector, the Asia, Australia, Middle East region saw revenue
growing by 9%, including double-digit increases in China and India.
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter |
|
|
|
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
Gross profit on revenue |
|
|
5,876 |
|
|
|
5,226 |
|
|
|
12 |
% |
as percentage of revenue |
|
|
30.6 |
% |
|
|
29.8 |
% |
|
|
|
|
Gross profit for the third quarter of fiscal 2008 rose 12% year-over-year, with all Sectors
contributing to the increase. Gross profit margin improved to 30.6%, driven by positive margin
developments in Industry and Energy.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter |
|
|
|
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
Research and development expenses |
|
|
(916 |
) |
|
|
(898 |
) |
|
|
2 |
% |
as percentage of revenue |
|
|
4.8 |
% |
|
|
5.1 |
% |
|
|
|
|
Marketing, selling and general administrative expenses |
|
|
(3,195 |
) |
|
|
(3,069 |
) |
|
|
4 |
% |
as percentage of revenue |
|
|
16.7 |
% |
|
|
17.5 |
% |
|
|
|
|
Other operating income |
|
|
259 |
|
|
|
144 |
|
|
|
80 |
% |
Other operating expense |
|
|
(144 |
) |
|
|
(207 |
) |
|
|
(30 |
)% |
Income (loss) from investments accounted for using the equity method, net |
|
|
74 |
|
|
|
(222 |
) |
|
|
n.a. |
|
Financial income (expense), net |
|
|
94 |
|
|
|
(32 |
) |
|
|
n.a. |
|
Research and development (R&D) expenses increased 2% to 916 million in the third quarter. As
in all Sectors revenue grew faster than R&D expenses for the quarter, R&D expenses as a percentage
of revenue declined to 4.8% compared to 5.1% in the prior-year period.
Marketing, selling and general administrative (SG&A) expenses also increased more slowly than
revenue in the third quarter. As a result, SG&A expenses of 3.195 billion came in at 16.7% of
revenue compared to 17.5% in the third quarter a year earlier.
Other operating income was 259 million in the third quarter of fiscal 2008, compared to 144
million a year earlier. The current period includes a pre-tax gain of 113 million on the sale of
the wireless modules business in the Industry Sector.
Other operating expense decreased year-over-year, to 144 million. For comparison, 207
million in Other operating expense in the prior-year period included higher outlays for legal and
regulatory matters. Expenses for outside advisors engaged in connection with investigations into
alleged violations of anti-corruption laws and related matters as well as remediation activities
increased from 54 million in the prior-year period to 106 million in the current quarter.
Income (loss) from investments accounted for using the equity method, net was a positive 74
million compared to a negative 222 million in the same period a year earlier. The change was
related mainly to our equity stake in NSN. The equity investment loss
associated with NSN was 21 million in the third quarter, compared to an equity investment loss of
371 million in the prior-year period.
Financial income (expense), net swung to a positive 94 million from a negative 32 million in
the third quarter a year earlier, due primarily to a combination of
lower indebtedness in Siemens
operating businesses as well as lower interest rates on U.S. dollar denominated debt.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter |
|
|
|
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
Income from continuing operations before income taxes |
|
|
2,048 |
|
|
|
942 |
|
|
|
117 |
% |
Income taxes |
|
|
(573 |
) |
|
|
(334 |
) |
|
|
72 |
% |
as percentage of income from continuing operations before income taxes |
|
|
28 |
% |
|
|
35 |
% |
|
|
|
|
Income from continuing operations |
|
|
1,475 |
|
|
|
608 |
|
|
|
143 |
% |
Income (loss) from discontinued operations, net of income taxes |
|
|
(56 |
) |
|
|
1,457 |
|
|
|
n.a. |
|
Net income |
|
|
1,419 |
|
|
|
2,065 |
|
|
|
(31 |
)% |
Net income attributable to minority interest |
|
|
45 |
|
|
|
39 |
|
|
|
|
|
Net income attributable to shareholders of Siemens AG |
|
|
1,374 |
|
|
|
2,026 |
|
|
|
(32 |
)% |
5
Income from continuing operations before income taxes rose substantially year-over-year, to
2.048 billion. The primary drivers of the improvement were higher profits in all Sectors,
particularly in Industry, including the 113 million pre-tax gain on the sale of a business
mentioned above, as well as a reduced equity investment loss related to NSN. The effective tax rate
in the third quarter was 28%. The reduction compared to 35% in the prior-year period stemmed mainly
from the above-mentioned swing in Income (loss) from investments accounted for using the equity
method, net. In connection with the effects noted above, this resulted in significantly higher
Income from continuing operations compared to the third quarter of fiscal 2007.
Discontinued operations in the periods under review include former Com activities as well as
SV, which was sold to Continental AG in the first quarter of fiscal 2008. The former Com activities
include the enterprise networks business, which is held for disposal; telecommunications carrier
activities that were transferred into NSN in the third quarter of fiscal 2007; and the mobile
devices business sold to BenQ Corporation. In the third quarter of this year, discontinued
operations posted a loss of 56 million. For comparison, income from discontinued operations of
1.457 billion in the prior-year quarter included a 1.702 billion preliminary, pre-tax, non-cash
gain associated with the transfer of Siemens carrier-related assets into NSN, partially offset by
an impairment of the enterprise networks business in the pre-tax amount of 355 million.
Net income for Siemens in the third quarter was 1.419 billion, and Net income attributable to
shareholders of Siemens AG was 1.374 billion. In the same quarter a year earlier, Net income was
2.065 billion,
with
2.026 billion
attributable to shareholders of Siemens AG. The difference in Net income
year-over-year was strongly influenced by discontinued operations as described above.
6
Results of Siemens First nine months of fiscal 2008
The following discussion presents selected information for Siemens for the first nine months
of fiscal 2008:
In the first nine months of fiscal 2008, orders were 71.290 billion, up 14% from the
prior-year period, while revenue rose 7% year-over-year, to 55.676 billion. On an organic basis,
excluding currency translation and portfolio effects, orders increased 17% year-over-year and
revenue rose 8%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Orders (location of customer) |
|
|
|
Nine months ended |
|
|
% Change |
|
|
|
|
|
|
June 30, |
|
|
vs. previous year |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
Currency |
|
|
Portfolio |
|
Europe, C.I.S.**, Africa |
|
|
37,992 |
|
|
|
32,543 |
|
|
|
17 |
% |
|
|
17 |
% |
|
|
(2) |
% |
|
|
2 |
% |
therein Germany |
|
|
10,619 |
|
|
|
10,087 |
|
|
|
5 |
% |
|
|
3 |
% |
|
|
0 |
% |
|
|
2 |
% |
Americas |
|
|
18,072 |
|
|
|
17,007 |
|
|
|
6 |
% |
|
|
13 |
% |
|
|
(13) |
% |
|
|
6 |
% |
therein U.S. |
|
|
13,425 |
|
|
|
12,319 |
|
|
|
9 |
% |
|
|
19 |
% |
|
|
(17) |
% |
|
|
7 |
% |
Asia, Australia, Middle East |
|
|
15,226 |
|
|
|
13,038 |
|
|
|
17 |
% |
|
|
19 |
% |
|
|
(5) |
% |
|
|
3 |
% |
therein China |
|
|
4,255 |
|
|
|
3,428 |
|
|
|
24 |
% |
|
|
26 |
% |
|
|
(4) |
% |
|
|
2 |
% |
therein India |
|
|
1,832 |
|
|
|
1,615 |
|
|
|
13 |
% |
|
|
12 |
% |
|
|
(5) |
% |
|
|
6 |
% |
Siemens |
|
|
71,290 |
|
|
|
62,588 |
|
|
|
14 |
% |
|
|
17 |
% |
|
|
(6) |
% |
|
|
3 |
% |
|
|
|
* |
|
Excluding currency translation and portfolio effects. |
|
** |
|
Commonwealth of Independent States. |
Order growth of 14% in the first nine months included double-digit increases in all Sectors.
Industry grew fastest in the Asia, Australia, Middle East region, while Energy logged strong order
growth in the Europe, C.I.S., Africa region and the Americas. Healthcare expanded in all three
regions, including new volume from the acquisition of Dade Behring Holdings, Inc. (Dade Behring)
between the periods under review. The large third-quarter orders in Industry and Energy mentioned
earlier drove 17% order growth in the Europe, C.I.S., Africa region. Orders rose 6% in the
Americas, including strong negative currency translation effects only partly offset by new volume
from acquisitions. On an organic basis, orders were up 13% in the Americas compared to the third
quarter a year earlier. Orders for the Asia, Australia, Middle East region increased 17%, supported
by a higher volume of large orders in the Industry Sector compared to the prior-year period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (location of customer) |
|
|
|
Nine months ended |
|
|
% Change |
|
|
|
|
|
|
June 30, |
|
|
vs. previous year |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted* |
|
|
Currency |
|
|
Portfolio |
|
Europe, C.I.S.**, Africa |
|
|
29,708 |
|
|
|
27,710 |
|
|
|
7 |
% |
|
|
6 |
% |
|
|
(1) |
% |
|
|
2 |
% |
therein Germany |
|
|
9,333 |
|
|
|
9,214 |
|
|
|
1 |
% |
|
|
(1 |
)% |
|
|
0 |
% |
|
|
2 |
% |
Americas |
|
|
14,519 |
|
|
|
13,791 |
|
|
|
5 |
% |
|
|
10 |
% |
|
|
(12) |
% |
|
|
7 |
% |
therein U.S. |
|
|
10,802 |
|
|
|
10,745 |
|
|
|
1 |
% |
|
|
8 |
% |
|
|
(15) |
% |
|
|
8 |
% |
Asia, Australia, Middle East |
|
|
11,449 |
|
|
|
10,746 |
|
|
|
7 |
% |
|
|
7 |
% |
|
|
(4) |
% |
|
|
4 |
% |
therein China |
|
|
3,429 |
|
|
|
2,876 |
|
|
|
19 |
% |
|
|
21 |
% |
|
|
(4) |
% |
|
|
2 |
% |
therein India |
|
|
1,287 |
|
|
|
1,181 |
|
|
|
9 |
% |
|
|
6 |
% |
|
|
(6) |
% |
|
|
9 |
% |
Siemens |
|
|
55,676 |
|
|
|
52,247 |
|
|
|
7 |
% |
|
|
8 |
% |
|
|
(5) |
% |
|
|
4 |
% |
|
|
|
* |
|
Excluding currency translation and portfolio effects. |
|
** |
|
Commonwealth of Independent States. |
The increase in revenue for the first nine months was fueled by double-digit growth in Energy
and Healthcare. The Industry Sector grew 6% compared to the prior-year period. Revenue growth was
well-balanced regionally on a nine-month basis. The Europe, C.I.S., Africa region expanded 7%
year-over-year, with revenue growth in all Sectors. The Americas posted a 5% increase, despite
negative currency translation effects that took 15 percentage points from U.S. revenue growth. On
an organic basis, revenues were up 8% in the U.S. and 10% for the Americas region. The Asia,
Australia, Middle East region came in with 7% revenue expansion, including double-digit growth in
Industry and Healthcare. Revenue in China climbed 19% and 9% in India compared to the first nine
months a year earlier.
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
|
|
|
|
|
June 30, |
|
|
|
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
Gross profit on revenue |
|
|
16,097 |
|
|
|
14,954 |
|
|
|
8 |
% |
as percentage of revenue |
|
|
28.9 |
% |
|
|
28.6 |
% |
|
|
|
|
Gross profit for the first nine months of fiscal 2008 increased 8% year-over-year on
substantial rises at Industry and Healthcare. This resulted in an increase in gross profit as a
percentage of revenue despite significant project charges, including previously reported project
charges of 857 million in the second quarter of fiscal 2008. These charges occurred in the Fossil
Power Generation Division of the Energy Sector, the Mobility Division of the Industry Sector, and
at Siemens IT Solutions and Services.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
|
|
|
|
|
June 30, |
|
|
|
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
Research and development expenses |
|
|
(2,681 |
) |
|
|
(2,437 |
) |
|
|
10 |
% |
as percentage of revenue |
|
|
4.8 |
% |
|
|
4.7 |
% |
|
|
|
|
Marketing, selling and general administrative expenses |
|
|
(9,493 |
) |
|
|
(8,667 |
) |
|
|
10 |
% |
as percentage of revenue |
|
|
17.1 |
% |
|
|
16.6 |
% |
|
|
|
|
Other operating income |
|
|
636 |
|
|
|
462 |
|
|
|
38 |
% |
Other operating expense |
|
|
(607 |
) |
|
|
(866 |
) |
|
|
(30) |
% |
Income from investments accounted for using the equity method, net |
|
|
283 |
|
|
|
105 |
|
|
|
170 |
% |
Financial income (expense), net |
|
|
119 |
|
|
|
9 |
|
|
|
>200 |
% |
Nine-month R&D expenses increased to 2.681 billion from 2.437 billion
a year earlier, led by
higher expenses at the Industry Automation Division in the Industry Sector and Healthcares
Diagnostics Division. Acquisitions made significant contributions to higher R&D expenses in both
Divisions. For Siemens overall, R&D expenses as a percentage of revenue rose to 4.8%, from 4.7% in
the same period a year earlier.
SG&A expenses rose to 9.493 billion, up from 8.667 billion in the
first nine months of
fiscal 2007. The Industry Automation Division and the Diagnostics Division again led the increase,
in both cases largely due to business expansion. Further, SG&A expenses in the current period
included expenses associated with the transformation of Siemens corporate structure including
costs at a regional sales organization in Germany, and a 32 million donation to the Siemens
Foundation in the U.S.
Other operating income for the first nine months was 636 million, compared to 462 million in
the prior-year period. This increase is due mainly to higher gains from sales of real estate and
sales of businesses, including the 113 million pre-tax gain on the sale of the wireless modules
business mentioned earlier. The prior-year period included a gain of 76 million on the sale of
Siemens Dispolok GmbH Germany, which was part of Industry.
Other operating expense came in below the level of the first nine months of fiscal 2007. The
prior-year period was affected by significant expenses for legal and regulatory matters, including
a previously disclosed antitrust penalty of 423 million, as well as 81 million primarily to fund
job placement companies for former Siemens employees affected by the bankruptcy of BenQ Mobile GmbH
& Co. OHG (BenQ). While both periods included expenses for outside advisors engaged in connection
with investigations into alleged violations of anti-corruption laws and related matters as well as
remediation activities, those expenses were substantially higher in the current period at 347
million compared to 67 million a year earlier. In addition, the first nine months of fiscal 2008
include a goodwill impairment of 70 million related to a buildings and infrastructure business
that is held for disposal. For comparison, the prior-year period included a goodwill impairment of
52 million at a regional payphone unit. Both businesses are included in Other Operations.
Income from investments accounted for using the equity method, net rose year-over-year to 283
million in the current period, due primarily to a significantly reduced equity investment loss
related to NSN, only partly offset by lower equity investment income related to BSH Bosch und Siemens Hausgeräte GmbH (BSH).
Financial income (expense), net increased to 119 million, up from 9 million in the first
nine months a year earlier, on higher Interest income (expense), net.
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
|
|
|
|
|
June 30, |
|
|
|
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
Income from continuing operations before income taxes |
|
|
4,354 |
|
|
|
3,560 |
|
|
|
22 |
% |
Income taxes |
|
|
(1,236 |
) |
|
|
(1,045 |
) |
|
|
18 |
% |
as percentage of income from continuing operations before income taxes |
|
|
28 |
% |
|
|
29 |
% |
|
|
|
|
Income from continuing operations |
|
|
3,118 |
|
|
|
2,515 |
|
|
|
24 |
% |
Income from discontinued operations, net of income taxes |
|
|
5,188 |
|
|
|
1,597 |
|
|
|
>200 |
% |
Net income |
|
|
8,306 |
|
|
|
4,112 |
|
|
|
102 |
% |
Net income attributable to minority interest |
|
|
116 |
|
|
|
151 |
|
|
|
|
|
Net income attributable to shareholders of Siemens AG |
|
|
8,190 |
|
|
|
3,961 |
|
|
|
107 |
% |
Income from continuing operations before income taxes was 4.354 billion compared to 3.560
billion in the first nine months a year earlier. The increase is primarily due to higher gross
profit, lower expenses for legal and regulatory matters, and a significantly reduced loss from our
stake in NSN, partly offset by higher SG&A expenses. The effective tax rate was 28% in the first
nine months of fiscal 2008 compared to 29% in the prior-year period. As a result, income from
continuing operations in the first nine months was 3.118 billion, up 24% from 2.515 billion a
year earlier.
Discontinued operations include former Com activities as well as SV, which was sold to
Continental AG in the first quarter of fiscal 2008. The former Com activities include the
enterprise networks business, which is held for disposal, the telecommunications carrier activities
transferred into NSN in the third quarter of fiscal 2007, and the mobile devices business sold to
BenQ Corporation. In the first nine months, income from discontinued operations was 5.188 billion
compared to 1.597 billion in the same period a year earlier. The current period includes a result
of approximately 5.4 billion related to SV, including operating results along with a substantial
gain on the sale of the business. The result for former Com activities in the first nine months of
fiscal 2008 was a negative 255 million, including severance charges and impairments of long-lived
assets at the enterprise networks business, as well as expenses for outside advisors engaged in
connection with investigations into alleged violations of anti-corruption laws and related matters.
The prior-year period included a 1.702 billion preliminary, pre-tax non-cash gain associated with
the transfer of Siemens carrier-related assets into NSN as well as positive operating results at
SV, partially offset by impairments totaling 503 million. For additional information with respect
to discontinued operations, see Notes to Interim Consolidated Financial Statements.
Net income for Siemens in the first nine months was 8.306 billion, compared to 4.112 billion
in the same period a year earlier. Net income attributable to shareholders of Siemens AG was 8.190
billion, up from 3.961 billion in the prior-year.
Portfolio activities
At the beginning of November 2007, Siemens completed the acquisition of Dade Behring, USA, a leading manufacturer and distributor of diagnostic products and
services to clinical laboratories. Dade Behring was consolidated as
of November 2007 and integrated into Sector Healthcares Diagnostics division. The aggregate consideration, including
the assumption of debt, amounts to approximately 4.9 billion (including 69 million cash
acquired). The company has not yet finalized the purchase price allocation (PPA). Further
information on PPA and integration costs related to the acquisitions mentioned here is given below
in Segment information analysis.
At the beginning of December 2007, Siemens sold its SV activities to Continental AG, Hanover,
Germany for a sales price of approximately 11.4 billion.
We completed certain other portfolio transactions during the first nine months of fiscal 2008
which did not have a significant effect on our Interim Consolidated Financial Statements. For
further information on acquisitions and dispositions, see Notes to Interim Consolidated Financial
Statements. For portfolio activities after the end of the third quarter of fiscal 2008 see
Subsequent events.
9
Segment information analysis
Sectors
Industry Third
quarter of fiscal 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
Sector ( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Profit |
|
|
1,143 |
|
|
|
822 |
|
|
|
39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Profit margin |
|
|
12.1 |
% |
|
|
9.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders |
|
|
11,508 |
|
|
|
9,149 |
|
|
|
26 |
% |
|
|
31 |
% |
|
|
(6 |
)% |
|
|
1 |
% |
Revenue |
|
|
9,423 |
|
|
|
8,751 |
|
|
|
8 |
% |
|
|
12 |
% |
|
|
(5 |
)% |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders by Divisions |
|
Third quarter |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Industry Automation |
|
|
2,214 |
|
|
|
2,040 |
|
|
|
9 |
% |
|
|
10 |
% |
|
|
(4 |
)% |
|
|
3 |
% |
Drive Technologies |
|
|
2,407 |
|
|
|
2,251 |
|
|
|
7 |
% |
|
|
10 |
% |
|
|
(3 |
)% |
|
|
0 |
% |
Building Technologies |
|
|
1,512 |
|
|
|
1,510 |
|
|
|
0 |
% |
|
|
5 |
% |
|
|
(6 |
)% |
|
|
1 |
% |
Osram |
|
|
1,109 |
|
|
|
1,124 |
|
|
|
(1 |
)% |
|
|
5 |
% |
|
|
(7 |
)% |
|
|
1 |
% |
Industry Solutions |
|
|
2,040 |
|
|
|
1,759 |
|
|
|
16 |
% |
|
|
21 |
% |
|
|
(6 |
)% |
|
|
1 |
% |
Mobility |
|
|
2,952 |
|
|
|
1,159 |
|
|
|
155 |
% |
|
|
165 |
% |
|
|
(10 |
)% |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Divisions |
|
Third quarter |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Industry Automation |
|
|
2,202 |
|
|
|
1,921 |
|
|
|
15 |
% |
|
|
16 |
% |
|
|
(4 |
)% |
|
|
3 |
% |
Drive Technologies |
|
|
2,266 |
|
|
|
1,973 |
|
|
|
15 |
% |
|
|
18 |
% |
|
|
(3 |
)% |
|
|
0 |
% |
Building Technologies |
|
|
1,442 |
|
|
|
1,396 |
|
|
|
3 |
% |
|
|
8 |
% |
|
|
(6 |
)% |
|
|
1 |
% |
Osram |
|
|
1,109 |
|
|
|
1,124 |
|
|
|
(1 |
)% |
|
|
5 |
% |
|
|
(7 |
)% |
|
|
1 |
% |
Industry Solutions |
|
|
1,728 |
|
|
|
1,561 |
|
|
|
11 |
% |
|
|
16 |
% |
|
|
(6 |
)% |
|
|
1 |
% |
Mobility |
|
|
1,403 |
|
|
|
1,456 |
|
|
|
(4 |
)% |
|
|
(1 |
)% |
|
|
(3 |
)% |
|
|
0 |
% |
|
|
|
(1) |
|
Currency translation effects |
|
(2) |
|
Portfolio effects |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Division Profit |
|
|
Division Profit Margin |
|
|
|
Third quarter |
|
|
Third quarter |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
|
|
2008 |
|
|
2007 |
|
Industry Automation |
|
|
467 |
|
|
|
244 |
|
|
|
91 |
% |
|
|
21.2 |
% |
|
|
12.7 |
% |
Drive Technologies |
|
|
344 |
|
|
|
246 |
|
|
|
40 |
% |
|
|
15.2 |
% |
|
|
12.5 |
% |
Building Technologies |
|
|
95 |
|
|
|
97 |
|
|
|
(2 |
)% |
|
|
6.6 |
% |
|
|
6.9 |
% |
Osram |
|
|
111 |
|
|
|
116 |
|
|
|
(4 |
)% |
|
|
10.0 |
% |
|
|
10.3 |
% |
Industry Solutions |
|
|
98 |
|
|
|
81 |
|
|
|
21 |
% |
|
|
5.7 |
% |
|
|
5.2 |
% |
Mobility |
|
|
39 |
|
|
|
38 |
|
|
|
3 |
% |
|
|
2.8 |
% |
|
|
2.6 |
% |
In the third quarter of fiscal 2008, the Industry Sector combined 8% revenue growth with a
higher profit margin to produce a substantial increase in Sector profit compared to the same
quarter a year earlier. Sector profit of 1.143 billion benefited also from a 113 million gain on
the sale of the Sectors wireless modules business, and both periods under review included purchase
price accounting (PPA) effects and integration costs related to acquisitions.
10
The largest Divisions within the Sector Industry Automation, Drive Technologies and
Industry Solutions drove the increases in Sector revenue and Sector profit year-over-year. The
three other Divisions within the Sector maintained their third-quarter Division profit at or near
prior-year levels.
Revenue for the Industry Sector rose to 9.423 billion from 8.751 billion in the third
quarter a year ago. Orders grew even faster, coming in 26% higher at 11.508 billion. Order growth
was broad-based, highlighted by a 1.4 billion rolling stock order in Europe and strong global
demand for metals technologies solutions. Even without the rolling stock order, the book-to-bill
ratio for the Sector increased to 1.07 year-over-year.
Working in strong markets, the Industry Automation and Drive Technologies Divisions maintained
high capacity utilization and continued to achieve volume-driven economies of scale. The result was
significant profit growth in both Divisions.
Industry Automation contributed 467 million to Sector profit in the quarter, up sharply
year-over-year on a 15% increase in revenue. This represents high double-digit Division profit
growth even without the 113 million gain mentioned above, which came within Industry Automation.
Both periods under review were affected by PPA and integration effects related to the acquisition
of UGS Corp. (UGS) during the third quarter of fiscal 2007. These factors took approximately 190
basis points from profit margin in the current quarter, including PPA effects of 36 million and
integration costs of 5 million. In the same quarter a year earlier, PPA effects and integration
costs were 49 million and 11 million, respectively, and cut approximately 310 basis points from
profit margin.
Drive Technologies contributed 344 million to Sector profit, a 40% increase compared to the
prior-year quarter, on a 15% increase in revenue. Both periods included PPA effects of 10 million
related to the acquisition of Flender Holding GmbH (Flender) in fiscal 2005. The impact on profit
margin was approximately 40 basis points in the current period and approximately 50 basis points in
the prior-year quarter.
The Industry Solutions Division posted 21% profit growth on an 11% rise in revenue, including
double-digit topline growth and significant margin improvement in the fast-growing metals
technologies industry.
The Osram and Building Technologies Divisions face growth challenges related to adverse
currency translation effects from their substantial U.S. presence as well as slowing economic
growth in Western Europe and the U.S. Yet both maintained third-quarter profit close to prior-year
levels. For comparison, profit at Building Technologies in the prior-year quarter benefited from a
gain on the sale of a business.
Mobility held its Division profit level with the prior-year period, at 39 million. Orders of
2.952 billion included the 1.4 billion contract for more than 300 trains from the Belgian state
railway system, Siemens largest-ever rolling stock order. As part of its Mobility in Motion
transformation program to improve its cost structure, Mobility intends to take charges in the
fourth quarter depending on the progress of labor negotiations.
Industry First
nine months of fiscal 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
Sector ( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Profit |
|
|
3,068 |
|
|
|
2,503 |
|
|
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Profit margin |
|
|
11.1 |
% |
|
|
9.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders |
|
|
32,540 |
|
|
|
28,498 |
|
|
|
14 |
% |
|
|
16 |
% |
|
|
(4 |
)% |
|
|
2 |
% |
Revenue |
|
|
27,677 |
|
|
|
26,115 |
|
|
|
6 |
% |
|
|
8 |
% |
|
|
(4 |
)% |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders by Divisions |
|
Nine months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Industry Automation |
|
|
6,732 |
|
|
|
5,684 |
|
|
|
18 |
% |
|
|
12 |
% |
|
|
(4 |
)% |
|
|
10 |
% |
Drive Technologies |
|
|
7,586 |
|
|
|
6,774 |
|
|
|
12 |
% |
|
|
15 |
% |
|
|
(3 |
)% |
|
|
0 |
% |
Building Technologies |
|
|
4,610 |
|
|
|
4,748 |
|
|
|
(3 |
)% |
|
|
1 |
% |
|
|
(5 |
)% |
|
|
1 |
% |
Osram |
|
|
3,490 |
|
|
|
3,487 |
|
|
|
0 |
% |
|
|
6 |
% |
|
|
(7 |
)% |
|
|
1 |
% |
Industry Solutions |
|
|
6,601 |
|
|
|
6,072 |
|
|
|
9 |
% |
|
|
12 |
% |
|
|
(4 |
)% |
|
|
1 |
% |
Mobility |
|
|
6,033 |
|
|
|
3,950 |
|
|
|
53 |
% |
|
|
58 |
% |
|
|
(5 |
)% |
|
|
0 |
% |
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Divisions |
|
Nine months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Industry Automation |
|
|
6,413 |
|
|
|
5,372 |
|
|
|
19 |
% |
|
|
13 |
% |
|
|
(4 |
)% |
|
|
10 |
% |
Drive Technologies |
|
|
6,446 |
|
|
|
5,628 |
|
|
|
15 |
% |
|
|
18 |
% |
|
|
(3 |
)% |
|
|
0 |
% |
Building Technologies |
|
|
4,308 |
|
|
|
4,415 |
|
|
|
(2 |
)% |
|
|
2 |
% |
|
|
(5 |
)% |
|
|
1 |
% |
Osram |
|
|
3,490 |
|
|
|
3,487 |
|
|
|
0 |
% |
|
|
6 |
% |
|
|
(7 |
)% |
|
|
1 |
% |
Industry Solutions |
|
|
5,022 |
|
|
|
4,763 |
|
|
|
5 |
% |
|
|
8 |
% |
|
|
(4 |
)% |
|
|
1 |
% |
Mobility |
|
|
4,194 |
|
|
|
4,477 |
|
|
|
(6 |
)% |
|
|
(3 |
)% |
|
|
(3 |
)% |
|
|
0 |
% |
|
|
|
(1) |
|
Currency translation effects. |
|
(2) |
|
Portfolio effects. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Division Profit |
|
|
Division Profit Margin |
|
|
|
Nine months ended June 30, |
|
|
Nine months ended June 30, |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
|
|
2008 |
|
|
2007 |
|
Industry Automation |
|
|
1,253 |
|
|
|
798 |
|
|
|
57 |
% |
|
|
19.5 |
% |
|
|
14.9 |
% |
Drive Technologies |
|
|
891 |
|
|
|
642 |
|
|
|
39 |
% |
|
|
13.8 |
% |
|
|
11.4 |
% |
Building Technologies |
|
|
297 |
|
|
|
296 |
|
|
|
0 |
% |
|
|
6.9 |
% |
|
|
6.7 |
% |
Osram |
|
|
359 |
|
|
|
364 |
|
|
|
(1 |
)% |
|
|
10.3 |
% |
|
|
10.4 |
% |
Industry Solutions |
|
|
310 |
|
|
|
229 |
|
|
|
35 |
% |
|
|
6.2 |
% |
|
|
4.8 |
% |
Mobility |
|
|
(33 |
) |
|
|
175 |
|
|
|
|
|
|
|
(0.8 |
)% |
|
|
3.9 |
% |
For the first nine months of fiscal 2008, profit at the Industry Sector was 3.068 billion, up
23% compared to 2.503 billion in the previous nine-month period. As in the third quarter, the main
drivers of Sector profit growth for the first nine months were the Industry Automation, Drive
Technologies and Industry Solutions Divisions. The Industry Automation Division benefited from a
pre-tax gain of 113 million from the sale of its wireless modules business mentioned above as well
as from a gain of
38 million
from the sale of another business that was divested during the first
quarter of fiscal 2008. Both periods under review included PPA effects and integration costs
stemming from Industry Automations acquisition of UGS. PPA effects were 110 million and
integration costs were 12 million in the current nine months. PPA and integration costs in the
prior-year nine-month period were the same as for the third quarter of the prior-year, when the
acquisition occurred. PPA effects within the Drive Technologies Division resulting from the
acquisition of Flender were stable year-over-year with 29 million in the current period compared
to 31 million in the previous year period.
Within Industry Solutions, the Divisions metal
technologies business made the largest contribution to the Divisions profit growth. The Division
also benefited from a 30 million gain on the sale of its hydrocarbon business.
Profit at Building
Technologies and Osram for the first nine months of fiscal 2008 was nearly level with the
prior-year period. Profit at Building Technologies in the prior-year period included the gain on
the sale of a business mentioned above.
In the first nine months of fiscal 2008, Mobility recorded
a loss of 33 million and took charges of 209 million in the second quarter resulting from reviews
of major project risks, with the largest single charge related to the Shanghai Transrapid monorail.
Mobility also took 32 million in charges related to Combino railcar in the first quarter of the
current nine-month period. In the first three quarters a year earlier, Mobility posted a profit of
175 million, as charges related to major projects, including Combino, were partially offset by a
net gain of 76 million on the sale of the Divisions locomotive leasing business.
Orders of 32.540 billion and revenue of 27.677 billion for the Industry Sector were up 14%
and 6%, respectively, compared to the first nine months a year ago. On a regional basis, the Sector
showed double-digit order growth in the Asia, Australia, Middle East region and the Europe, C.I.S.,
Africa region. Order intake in the Americas declined slightly year-over-year due to strong negative
currency translation effects. The revenue growth rate for the Industry Sector was strongest in
Asia, Australia, Middle East, rising slightly in the Europe, C.I.S., Africa region and remaining
stable in the Americas. The Industry Automation and Drive Technologies Divisions both achieved
double-digit growth rates for orders and revenue, while orders and revenue at Building Technologies
were slightly down and nearly stable at Osram year-over-year including strong negative currency
translation effects. Mobilitys order intake for the first nine months of fiscal 2008 increased
sharply, benefiting from the large rolling stock order in Belgium mentioned above, while revenue in
the current period declined due to lower billings at large projects in the Divisions turnkey
systems business.
12
Energy
Third quarter of fiscal 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sector |
|
Third quarter |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Profit |
|
|
615 |
|
|
|
442 |
|
|
|
39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Profit margin |
|
|
10.6 |
% |
|
|
9.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders |
|
|
8,077 |
|
|
|
6,556 |
|
|
|
23 |
% |
|
|
33 |
% |
|
|
(10 |
)% |
|
|
0 |
% |
Revenue |
|
|
5,829 |
|
|
|
4,880 |
|
|
|
19 |
% |
|
|
26 |
% |
|
|
(7 |
)% |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders by Divisions |
|
Third quarter |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Fossil Power Generation |
|
|
2,083 |
|
|
|
2,232 |
|
|
|
(7 |
)% |
|
|
0 |
% |
|
|
(7 |
)% |
|
|
0 |
% |
Renewable Energy |
|
|
2,122 |
|
|
|
731 |
|
|
|
190 |
% |
|
|
231 |
% |
|
|
(41 |
)% |
|
|
0 |
% |
Oil & Gas |
|
|
1,550 |
|
|
|
1,246 |
|
|
|
24 |
% |
|
|
27 |
% |
|
|
(3 |
)% |
|
|
0 |
% |
Power Transmission |
|
|
1,588 |
|
|
|
1,569 |
|
|
|
1 |
% |
|
|
7 |
% |
|
|
(6 |
)% |
|
|
0 |
% |
Power Distribution |
|
|
906 |
|
|
|
844 |
|
|
|
7 |
% |
|
|
14 |
% |
|
|
(7 |
)% |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Divisions |
|
Third quarter |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Fossil Power Generation |
|
|
2,096 |
|
|
|
1,874 |
|
|
|
12 |
% |
|
|
19 |
% |
|
|
(7 |
)% |
|
|
0 |
% |
Renewable Energy |
|
|
631 |
|
|
|
323 |
|
|
|
95 |
% |
|
|
115 |
% |
|
|
(20 |
)% |
|
|
0 |
% |
Oil & Gas |
|
|
1,030 |
|
|
|
813 |
|
|
|
27 |
% |
|
|
31 |
% |
|
|
(4 |
)% |
|
|
0 |
% |
Power Transmission |
|
|
1,401 |
|
|
|
1,249 |
|
|
|
12 |
% |
|
|
18 |
% |
|
|
(6 |
)% |
|
|
0 |
% |
Power Distribution |
|
|
776 |
|
|
|
686 |
|
|
|
13 |
% |
|
|
19 |
% |
|
|
(6 |
)% |
|
|
0 |
% |
|
|
|
(1) |
|
Currency translation effects |
|
(2) |
|
Portfolio effects |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Division Profit |
|
|
Division Profit Margin |
|
|
|
Third quarter |
|
|
Third quarter |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
|
|
2008 |
|
|
2007 |
|
Fossil Power Generation |
|
|
212 |
|
|
|
199 |
|
|
|
7 |
% |
|
|
10.1 |
% |
|
|
10.6 |
% |
Renewable Energy |
|
|
72 |
|
|
|
29 |
|
|
|
148 |
% |
|
|
11.4 |
% |
|
|
9.0 |
% |
Oil & Gas |
|
|
95 |
|
|
|
62 |
|
|
|
53 |
% |
|
|
9.2 |
% |
|
|
7.6 |
% |
Power Transmission |
|
|
147 |
|
|
|
85 |
|
|
|
73 |
% |
|
|
10.5 |
% |
|
|
6.8 |
% |
Power Distribution |
|
|
88 |
|
|
|
66 |
|
|
|
33 |
% |
|
|
11.3 |
% |
|
|
9.6 |
% |
Siemens Energy Sector generated 615 million in profit in the third quarter, a substantial
increase compared to the prior-year period. All Divisions reported higher profits, with the
majority contributing high double-digit increases.
Revenue growth was also robust and well-distributed among the Divisions. Sector revenue
climbed 19% to 5.829 billion, with all Divisions contributing to the increase. Orders grew faster
still, rising 23% over the prior-year quarter to reach 8.077 billion. While orders came in lower
at the Fossil Power Generation Division, Renewable Energy more than compensated with a substantial
increase compared to the same quarter a year earlier.
Nearly half of the Energy Sectors profit growth came from the Power Transmission and Power
Distribution Divisions, which were formerly combined in Siemens Power Transmission and
Distribution Group (PTD). These businesses continued to gain volume-driven economies of scale by
successfully meeting demand for higher efficiency and security in regional power grids. As a
result, both Divisions delivered strong profit growth and profit margins in their target ranges.
13
Revenue grew 12% at Power Transmission and 13% at Power Distribution. Orders grew more slowly
year-over-year, primarily due to a lower level of large orders than in the third quarter a year
ago. One of the most notable major orders came in at Power Transmission, for grid access to the
worlds largest off-shore wind farm, known as Greater Gabbard in the UK.
The Renewable Energy and Oil & Gas Divisions both profited well in the worlds booming markets
for energy production.
Renewable Energy generated 72 million in profit with a substantial increase in profit margin
year-over-year. The Division also reached new highs in revenue and orders, which climbed to 631
million and 2.122 billion, respectively. The latter figure includes an exceptionally large order
for 218 wind turbines in the U.S., which will be placed in wind farms throughout the country.
Renewable Energy also won an order for 140 turbines for the Greater Gabbard off-shore wind farm
mentioned above, thus demonstrating the Energy Sectors ability to provide integrated solutions for
large-scale energy projects. The Division expects to slow order intake compared to the
exceptionally high level of the current quarter, while ramping up capacity. In this regard, the
Division announced plans to double output at its U.S. rotor blade factory.
The Oil & Gas Division combines products and services for extraction, transport and refining
with additional offerings including industrial turbines. The Division contributed third-quarter
profit of 95 million and clearly improved its profit margin year-over-year. Oil & Gas completed
the quarter with a strong book-to-bill ratio based on order intake of 1.550 billion
The Fossil Power Generation Division delivered profit of 212 million on revenue of 2.096
billion in the third quarter, and contributed to both revenue and profit growth for the Energy
Sector as a whole. Third-quarter revenue demonstrates the Divisions emphasis on balancing its
business more evenly among products, services, and turnkey power plant solutions. The Divisions
equity investment income was stable compared to the prior-year period.
Energy
First nine months of fiscal 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sector |
|
Nine months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Profit |
|
|
968 |
|
|
|
1,224 |
|
|
|
(21 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Profit margin |
|
|
6.1 |
% |
|
|
8.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders |
|
|
26,182 |
|
|
|
22,477 |
|
|
|
16 |
% |
|
|
23 |
% |
|
|
(7 |
)% |
|
|
0 |
% |
Revenue |
|
|
15,828 |
|
|
|
14,337 |
|
|
|
10 |
% |
|
|
15 |
% |
|
|
(5 |
)% |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders by Divisions |
|
Nine months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Fossil Power Generation |
|
|
9,706 |
|
|
|
9,434 |
|
|
|
3 |
% |
|
|
8 |
% |
|
|
(5 |
)% |
|
|
0 |
% |
Renewable Energy |
|
|
4,115 |
|
|
|
1,690 |
|
|
|
143 |
% |
|
|
172 |
% |
|
|
(29 |
)% |
|
|
0 |
% |
Oil & Gas |
|
|
4,493 |
|
|
|
3,511 |
|
|
|
28 |
% |
|
|
29 |
% |
|
|
(3 |
)% |
|
|
2 |
% |
Power Transmission |
|
|
5,505 |
|
|
|
5,504 |
|
|
|
0 |
% |
|
|
5 |
% |
|
|
(5 |
)% |
|
|
0 |
% |
Power Distribution |
|
|
2,743 |
|
|
|
2,571 |
|
|
|
7 |
% |
|
|
12 |
% |
|
|
(5 |
)% |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Divisions |
|
Nine months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Fossil Power Generation |
|
|
5,729 |
|
|
|
5,861 |
|
|
|
(2 |
)% |
|
|
3 |
% |
|
|
(5 |
)% |
|
|
0 |
% |
Renewable Energy |
|
|
1,465 |
|
|
|
898 |
|
|
|
63 |
% |
|
|
76 |
% |
|
|
(13 |
)% |
|
|
0 |
% |
Oil & Gas |
|
|
2,838 |
|
|
|
2,345 |
|
|
|
21 |
% |
|
|
22 |
% |
|
|
(4 |
)% |
|
|
3 |
% |
Power Transmission |
|
|
3,901 |
|
|
|
3,472 |
|
|
|
12 |
% |
|
|
17 |
% |
|
|
(5 |
)% |
|
|
0 |
% |
Power Distribution |
|
|
2,207 |
|
|
|
1,979 |
|
|
|
12 |
% |
|
|
16 |
% |
|
|
(4 |
)% |
|
|
0 |
% |
|
|
|
(1) |
|
Currency translation effects. |
|
(2) |
|
Portfolio effects. |
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Division Profit |
|
|
Division Profit Margin |
|
|
|
Nine months ended June 30, |
|
|
Nine months ended June 30, |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
|
|
2008 |
|
|
2007 |
|
Fossil Power Generation |
|
|
(91 |
) |
|
|
576 |
|
|
|
|
|
|
|
(1.6 |
)% |
|
|
9.8 |
% |
Renewable Energy |
|
|
159 |
|
|
|
84 |
|
|
|
89 |
% |
|
|
10.9 |
% |
|
|
9.4 |
% |
Oil & Gas |
|
|
239 |
|
|
|
139 |
|
|
|
72 |
% |
|
|
8.4 |
% |
|
|
5.9 |
% |
Power Transmission |
|
|
416 |
|
|
|
227 |
|
|
|
83 |
% |
|
|
10.7 |
% |
|
|
6.5 |
% |
Power Distribution |
|
|
243 |
|
|
|
197 |
|
|
|
23 |
% |
|
|
11.0 |
% |
|
|
10.0 |
% |
For the first nine months of fiscal 2008, profit at the Energy Sector was 968 million, a 21%
decline compared to 1.224 billion in the previous year period. Division profit rose sharply at
Renewable Energy, Oil & Gas, Power Transmission and Power Distribution, driven by increased
capacity utilization and higher profit margins compared to the prior-year period. In contrast,
Fossil Power Generation recorded a loss of 91 million in the first three quarters, compared to
profit of 576 million in the same period a year earlier. The change was due to the Divisions
turnkey solutions business, where a review of major projects identified resource constraints
leading to project delays, expiring supplier price agreements, and significantly higher commodity
prices. Based on the review, the Fossil Power Generation Division recorded charges of 559 million
in the turnkey business in the second quarter, following charges of more than 200 million in the
first quarter of fiscal 2008. Equity investment income related to Areva NP showed a positive swing
year-over-year, contributing 26 million to Energy Sector profit in the current nine months
compared to a negative 8 million in the prior-year period. Equity investment income is expected to
be more volatile in coming quarters.
Revenue in the Energy Sector rose 10% for the first nine months of fiscal 2008, to 15.828
billion compared to 14.337 billion in the previous period. Orders climbed 16% above the prior-year
period to 26.182 billion compared to 22.477 billion in the previous period. On an organic basis,
revenue and orders for the nine-month period at the Energy Sector increased 15% and 23%,
respectively, with all Divisions contributing. Topline expansion was particularly rapid at
Renewable Energy, with revenue increasing 63% and orders more than doubling year-over-year. Oil &
Gas benefited from strong market dynamics as well, showing high double-digit growth in both revenue
and orders.
15
Healthcare
Third quarter of fiscal 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sector |
|
Third quarter |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Profit |
|
|
326 |
|
|
|
307 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Profit margin |
|
|
12.2 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders |
|
|
2,801 |
|
|
|
2,517 |
|
|
|
11 |
% |
|
|
5 |
% |
|
|
(9 |
)% |
|
|
15 |
% |
Revenue |
|
|
2,677 |
|
|
|
2,431 |
|
|
|
10 |
% |
|
|
3 |
% |
|
|
(9 |
)% |
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders by Divisions |
|
Third quarter |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Imaging & IT |
|
|
1,699 |
|
|
|
1,693 |
|
|
|
0 |
% |
|
|
8 |
% |
|
|
(8 |
)% |
|
|
0 |
% |
Workflow & Solutions |
|
|
348 |
|
|
|
378 |
|
|
|
(8 |
)% |
|
|
(2 |
)% |
|
|
(6 |
)% |
|
|
0 |
% |
Diagnostics |
|
|
831 |
|
|
|
502 |
|
|
|
66 |
% |
|
|
2 |
% |
|
|
(12 |
)% |
|
|
76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Divisions |
|
Third quarter |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Imaging & IT |
|
|
1,569 |
|
|
|
1,639 |
|
|
|
(4 |
)% |
|
|
3 |
% |
|
|
(7 |
)% |
|
|
0 |
% |
Workflow & Solutions |
|
|
359 |
|
|
|
361 |
|
|
|
(1 |
)% |
|
|
5 |
% |
|
|
(6 |
)% |
|
|
0 |
% |
Diagnostics |
|
|
826 |
|
|
|
492 |
|
|
|
68 |
% |
|
|
3 |
% |
|
|
(13 |
)% |
|
|
78 |
% |
|
|
|
(1) |
|
Currency translation effects. |
|
(2) |
|
Portfolio effects. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Division Profit |
|
|
Division Profit Margin |
|
|
|
Third quarter |
|
|
Third quarter |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
|
|
2008 |
|
|
2007 |
|
Imaging & IT |
|
|
199 |
|
|
|
223 |
|
|
|
(11 |
)% |
|
|
12.7 |
% |
|
|
13.6 |
% |
Workflow & Solutions |
|
|
33 |
|
|
|
40 |
|
|
|
(18 |
)% |
|
|
9.2 |
% |
|
|
11.1 |
% |
Diagnostics |
|
|
82 |
|
|
|
52 |
|
|
|
58 |
% |
|
|
9.9 |
% |
|
|
10.6 |
% |
Siemens Healthcare Sector sustained its growth and profitability in the face of challenging
market conditions. Sector profit was 326 million compared to 307 million in the third quarter a
year earlier. Profit margin was strongly influenced by PPA effects and integration costs associated
with acquisitions in the Diagnostics Division, including the acquisition of Dade Behring Holdings,
Inc. (Dade Behring) between the periods under review. These factors took approximately 210 basis
points from Sector profit margin in the third quarter, compared to 170 basis points in the
prior-year period.
Healthcare revenue rose 10%, to 2.677 billion, including new volume from Dade Behring in the
Diagnostics Division. On an organic basis, excluding portfolio transactions and strong currency
translation effects in the U.S., the Sectors three Divisions all contributed to revenue growth in
the quarter. Orders climbed 11% to 2.801 billion, again including the acquired volume in
Diagnostics. On a regional basis, the Sector achieved rapid growth in emerging markets,
particularly China. Growth was more modest in established markets characterized by slower economic
growth, tightening credit, and, in the U.S., by public policy affecting medical imaging.
The Healthcare Sector expects previously announced cost-reduction programs to result in
severance charges in the fourth quarter depending on the progress of labor negotiations. As part of
Siemens ongoing transformation programs, Healthcare anticipates further charges in the fourth
quarter related to a strategic review of certain business activities.
The Healthcare Sectors largest Division, Imaging & IT, offers medical imaging systems used
for diagnostic and interventional purposes as well as information technology systems used to store,
retrieve and transmit medical images and other information. In the third quarter, the newly formed
Division posted a profit of 199 million, negatively influenced by substantial currency effects.
16
Revenue and orders for
Imaging & IT were 1.569 billion and 1.699 billion, respectively, in the current quarter. On an
organic basis, revenue rose 3% and orders rose 8% year-over-year despite the difficult market
conditions mentioned above. Highlights of order growth included new offerings for magnetic
resonance imaging and computer-aided tomography. The momentum generated by these and other
innovative products helped increase the Divisions book-to-bill ratio year-over-year, which came in
at 1.08 for the third quarter.
The Diagnostics Division recorded profit of 82 million in the third quarter, up from 52
million in the prior-year period before the acquisition of Dade Behring. PPA effects and integration costs related to acquisitions, primarily Dade Behring, reduced
profit margin by approximately 700 basis points in the current quarter, including PPA effects of
29 million and net integration costs of 29 million. A year earlier, PPA and integration costs for
Diagnostics were 27 million and 14 million in the third quarter, respectively, taking 830 basis
points from the Divisions profit margin. Revenue of 826 million was significantly higher year-over-year due to new volume from Dade
Behring. Organic growth was solid at 3%. Along with profitable growth, the priorities at
Diagnostics continue to be rationalizing its product portfolio and realizing synergies among its
acquisitions. The Division made progress in these areas in the third quarter.
Healthcare
First nine months of fiscal 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sector |
|
Nine months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Profit |
|
|
999 |
|
|
|
943 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Profit margin |
|
|
12.4 |
% |
|
|
13.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders |
|
|
8,397 |
|
|
|
7,272 |
|
|
|
15 |
% |
|
|
3 |
% |
|
|
(8 |
)% |
|
|
20 |
% |
Revenue |
|
|
8,052 |
|
|
|
7,003 |
|
|
|
15 |
% |
|
|
2 |
% |
|
|
(8 |
)% |
|
|
21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders by Divisions |
|
Nine months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Imaging & IT |
|
|
5,048 |
|
|
|
5,149 |
|
|
|
(2 |
)% |
|
|
4 |
% |
|
|
(7 |
)% |
|
|
1 |
% |
Workflow & Solutions |
|
|
1,203 |
|
|
|
1,225 |
|
|
|
(2 |
)% |
|
|
3 |
% |
|
|
(5 |
)% |
|
|
0 |
% |
Diagnostics |
|
|
2,366 |
|
|
|
1,071 |
|
|
|
121 |
% |
|
|
3 |
% |
|
|
(15 |
)% |
|
|
133 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Divisions |
|
Nine months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Imaging & IT |
|
|
4,848 |
|
|
|
5,057 |
|
|
|
(4 |
)% |
|
|
2 |
% |
|
|
(7 |
)% |
|
|
1 |
% |
Workflow & Solutions |
|
|
1,083 |
|
|
|
1,070 |
|
|
|
1 |
% |
|
|
7 |
% |
|
|
(6 |
)% |
|
|
0 |
% |
Diagnostics |
|
|
2,354 |
|
|
|
1,062 |
|
|
|
122 |
% |
|
|
3 |
% |
|
|
(15 |
)% |
|
|
134 |
% |
|
|
|
(1) |
|
Currency translation effects. |
|
(2) |
|
Portfolio effects. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Division Profit |
|
|
Division Profit Margin |
|
|
|
Nine months ended June 30, |
|
|
Nine months ended June 30, |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
% Change |
|
|
2008 |
|
|
2007 |
|
Imaging & IT |
|
|
667 |
|
|
|
705 |
|
|
|
(5 |
)% |
|
|
13.8 |
% |
|
|
13.9 |
% |
Workflow & Solutions |
|
|
131 |
|
|
|
118 |
|
|
|
11 |
% |
|
|
12.1 |
% |
|
|
11.0 |
% |
Diagnostics |
|
|
198 |
|
|
|
99 |
|
|
|
100 |
% |
|
|
8.4 |
% |
|
|
9.3 |
% |
For the first nine months of fiscal 2008, Healthcare posted Sector profit of 999 million, up
6% compared to 943 million in the first nine months a year earlier. Profit in both periods was
negatively influenced by PPA effects and integration costs arising from the acquisitions mentioned
above. In the first nine months of fiscal 2008, these effects reduced the Sectors profit margin by
approximately 300 basis points compared to 140 basis points in the prior-year period. The negative
PPA effects and integration costs in the prior-year period were
17
partly offset by gains on divestments as well as from the sale of a portion of Healthcares
stake in a joint venture, Draeger Medical AG & Co. KG. Profit at the Diagnostics Division doubled
year-over-year and benefited from the Dade Behring acquisition between the periods under review.
The Divisions profit margin in both periods included significant negative effects from PPA and
integration costs. In the first nine months of fiscal 2008, PPA effects totaled 130 million
(including 7 million of non-recurring inventory step-up charges) and integration costs totaled
116 million. These factors reduced the Divisions profit margin by approximately 1050 basis
points. In the prior-year period, PPA effects from the acquisition of the diagnostics division of Bayer and Diagnostic Products Corporation (DPC) totaled 71 million (including 18
million of non-recurring inventory step-up charges) and integration costs were 30 million,
reducing the Divisions profit margin by approximately 950 basis points
Healthcares orders and revenue for the first nine months of fiscal 2008 were both up by 15%
compared to the prior-year period, benefiting from new volume at Dade Behring. Excluding currency
translation and portfolio effects all Divisions in the Healthcare Sector increased orders and
revenue slightly year-over-year.
18
Strategic Equity Investments (SEI)
SEI includes results at equity from three companies in which Siemens holds an equity stake:
NSN, BSH, and Fujitsu Siemens Computers (Holding) B.V.
(FSC). SEI contributed equity investment income of 1 million in the third quarter of fiscal 2008 compared to a
negative 301 million in the same period a year earlier. The largest factor in this improvement was
NSN, which reported improved operating results and also substantially reduced restructuring charges
and integration costs year-over-year. The current period included 201 million for restructuring
and integration costs, down from 905 million in the prior-year period. As a result, Siemens
equity investment loss related to NSN in the current quarter decreased to 21 million from 371
million a year earlier.
Equity investment income for the first nine months of fiscal 2008 was a positive 41 million
compared to a negative 150 million in the prior-year period. The increase was mainly due to NSN,
which incurred 421 million in charges for restructuring and integration programs, down from 905
million in the prior-year period mentioned above. As a result, Siemens equity investment loss in
NSN decreased to 103 million compared to 371 million in the same period a year earlier.
Cross-Sector Businesses
Siemens
IT Solutions and Services Third quarter of fiscal 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Profit |
|
|
64 |
|
|
|
66 |
|
|
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Profit margin |
|
|
5.1 |
% |
|
|
5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders |
|
|
1,209 |
|
|
|
1,094 |
|
|
|
10 |
% |
|
|
13 |
% |
|
|
(5 |
)% |
|
|
2 |
% |
Revenue |
|
|
1,255 |
|
|
|
1,257 |
|
|
|
0 |
% |
|
|
2 |
% |
|
|
(4 |
)% |
|
|
2 |
% |
|
|
|
(1) |
|
Currency translation effects |
|
(2) |
|
Portfolio effects |
Siemens IT Solutions and Services posted a profit of 64 million in the third quarter, with
the release of an accrual related to a major project contributing 13 million. Revenue of 1.255
billion in the third quarter was nearly unchanged compared to the same period a year earlier, while
orders rose 10% year-over-year, to 1.209 billion.
Siemens
IT Solutions and Services First nine months of fiscal 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
therein |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
Actual |
|
|
Adjusted |
|
|
Currency(1) |
|
|
Portfolio(2) |
|
Profit |
|
|
99 |
|
|
|
172 |
|
|
|
(42 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Profit margin |
|
|
2.6 |
% |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders |
|
|
3,879 |
|
|
|
3,561 |
|
|
|
9 |
% |
|
|
11 |
% |
|
|
(3 |
)% |
|
|
1 |
% |
Revenue |
|
|
3,861 |
|
|
|
3,922 |
|
|
|
(2 |
)% |
|
|
0 |
% |
|
|
(3 |
)% |
|
|
1 |
% |
|
|
|
(1) |
|
Currency translation effects |
|
(2) |
|
Portfolio effects |
For the first nine months of fiscal 2008, Profit for Siemens IT Solutions and Services
declined significantly compared to the prior-year period due to charges at projects in the UK,
which reduced profit by 89 million in the second quarter of fiscal 2008. This effect was only
partly offset by the release of the accrual of 13 million mentioned above. Orders for the first
nine months of fiscal 2008 increased by 9% compared to the prior-year period, including major
contracts from NSN and BBC (UK), both won in the second quarter of the current fiscal year.
19
Siemens Financial Services (SFS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter |
|
|
Nine months ended June 30, |
|
( in millions) |
|
2008 |
|
|
2007 |
|
|
%Change |
|
|
2008 |
|
|
2007 |
|
|
%Change |
|
Profit |
|
|
59 |
|
|
|
57 |
|
|
|
4 |
% |
|
|
237 |
|
|
|
277 |
|
|
|
(14 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
Sept. 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
2007 |
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,775 |
|
|
|
8,912 |
|
|
|
10 |
% |
Siemens Financial Services delivered income before income taxes of 59 million in the
third quarter, up from 57 million in the same period a year earlier. Profit for the first nine
months of both fiscal years benefited from special dividends resulting from divestment gains by a
Company in which SFS holds an equity position. The dividends received in the prior-year period were
higher. Profit of SFS equity and project finance business in the prior-year period also included a
gain on a sale of an investment. Total assets rose significantly compared to the end of fiscal
2007, primarily due to growth in the commercial finance business including asset purchases in
secondary markets.
Reconciliation to Consolidated Financial Statements
Reconciliation to Consolidated Financial Statements includes Other Operations, Siemens Real
Estate (SRE) and various categories of items, which are not allocated to the Sectors and
Cross-Sector Businesses because Management has determined that such items are not indicative of
the Sectors and Cross-Sector Businesses performance.
Other Operations
Other Operations consist of centrally held business activities, shared services and central
costs not allocated to a Sector or Cross-Sector Business. Under the previously announced
transformation program for Other Operations, all business activities are to be integrated into an
existing Siemens Sector or Cross-Sector Business, divested, moved to a joint venture, or closed. By
the third quarter, Siemens reached or concluded the implementation phase for a majority of business
activities. Partly as a result, third-quarter sales for Other Operations declined to 580 million
from 678 million in the prior-year quarter. The loss from Other Operations narrowed to a negative
20 million from a negative 56 million in the third quarter a year earlier. Siemens expects
negative earnings impacts in connection with the Other Operations transformation program in coming
quarters.
For the first nine months of fiscal 2008, the result of Other Operations was a negative 138
million, compared to a negative 153 million a year earlier. The difference is due primarily to
lower costs not directly related to business activities, partly offset by a goodwill impairment of
70 million in the first quarter of the current period related to a building and infrastructure
business that is held for disposal. SHC was profitable in both periods under review. Revenue for
Other Operations in the first nine months of fiscal 2008 was 1.918 billion, down from 2.221
billion in the prior-year period, including negative portfolio effects of 12%.
Siemens Real Estate (SRE)
For the third quarter, income before income taxes at SRE was 103 million, up from 69 million
a year earlier, primarily due to increased gains from real estate sales.
Income before income tax for the first nine months of fiscal 2008 was 302 million, up 68%
from 180 million in the prior-year period, also mainly due to higher gains from sales of real
estate. SRE intends to continue real estate disposals in coming quarters, depending on market
conditions.
Corporate items and pensions
Corporate items and pensions totaled a negative 245 million in the third quarter compared to
a negative 367 million in the prior-year period. The improvement is due primarily to Corporate
items, which totaled a negative 270 million compared to a negative 379 million in the same
quarter a year ago. The current period includes 106 million expenses for outside advisors engaged
in connection with investigations into alleged violations of anti-corruption laws and related
matters as well as remediation activities. These costs totaled 54 million in the prior-year
period. The third quarter of fiscal 2007 also included higher expenses for legal and
regulatory matters.
20
In the first nine months of fiscal 2008, Corporate items and pensions totaled a negative
1.038 billion compared to a negative 1.182 billion a year earlier. In the current period,
expenses for outside advisors engaged in connection with investigations into alleged violations of
anti-corruption laws and related matters as well as remediation activities were significantly
higher year-over-year, at 347 million, compared to 67 million in the prior-year period. In
addition, the current period includes expenses of 106 million, including an impairment, related to
a regional sales organization in Germany associated with the transformation of Siemens corporate
structure, as well as a 32 million donation to the Siemens Foundation in the U.S., which conducts
prestigious national competitions and scholarship programs in mathematics, science and engineering.
The first nine months of fiscal 2007 included significantly higher expenses for legal and
regulatory matters, including a previously disclosed antitrust penalty of 423 million and 81
million primarily to fund job placement companies for former Siemens employees affected by the
bankruptcy of BenQ.
Eliminations, Corporate Treasury and other reconciling items
Income before income taxes from Eliminations, Corporate Treasury and other reconciling items
in the third quarter of fiscal 2008 was a positive 2 million compared to a negative 97 million in
the same period a year earlier. The difference is mainly due to reduced interest expense stemming
from a combination of lower indebtedness in Siemens operating businesses as well as lower interest
rates on U.S. dollar denominated debt compared to the third quarter of fiscal 2007.
For the first nine months, income before income taxes from Eliminations, Corporate Treasury
and other reconciling items was a negative 184 million compared to a negative 254 million in the
prior-year period, with positive factors mentioned above partly offset by negative results from
hedging activities not qualifying for hedge accounting.
21
Reconciliation to EBITDA (continuing operations)
The following table gives additional information on topics included in Profit and Income
before income taxes and provides a reconciliation to EBITDA (adjusted):
For the nine months ended June 30, 2008 and 2007 ( in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
from investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and impairments |
|
|
|
|
|
|
|
|
|
|
|
|
accounted for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of property, plant |
|
|
|
|
|
|
|
|
|
|
|
|
using the equity |
|
Financial income |
|
EBIT |
|
|
|
|
|
|
|
|
|
and equipment |
|
EBITDA |
|
|
Profit(1) |
|
method, net(2) |
|
(expense), net(3) |
|
(adjusted)(4) |
|
Amortization(5) |
|
and goodwill(6) |
|
(adjusted) |
|
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
Sectors and Divisions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industry Sector |
|
|
3,068 |
|
|
|
2,503 |
|
|
|
13 |
|
|
|
20 |
|
|
|
|
|
|
|
(17 |
) |
|
|
3,055 |
|
|
|
2,500 |
|
|
|
243 |
|
|
|
174 |
|
|
|
487 |
|
|
|
469 |
|
|
|
3,785 |
|
|
|
3,143 |
|
Industry Automation |
|
|
1,253 |
|
|
|
798 |
|
|
|
(1 |
) |
|
|
2 |
|
|
|
4 |
|
|
|
(8 |
) |
|
|
1,250 |
|
|
|
804 |
|
|
|
120 |
|
|
|
39 |
|
|
|
76 |
|
|
|
63 |
|
|
|
1,446 |
|
|
|
906 |
|
Drive Technologies |
|
|
891 |
|
|
|
642 |
|
|
|
1 |
|
|
|
2 |
|
|
|
3 |
|
|
|
|
|
|
|
887 |
|
|
|
640 |
|
|
|
34 |
|
|
|
35 |
|
|
|
104 |
|
|
|
91 |
|
|
|
1,025 |
|
|
|
766 |
|
Building Technologies |
|
|
297 |
|
|
|
296 |
|
|
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
|
(2 |
) |
|
|
292 |
|
|
|
296 |
|
|
|
49 |
|
|
|
46 |
|
|
|
52 |
|
|
|
63 |
|
|
|
393 |
|
|
|
405 |
|
Osram |
|
|
359 |
|
|
|
364 |
|
|
|
3 |
|
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
355 |
|
|
|
359 |
|
|
|
17 |
|
|
|
21 |
|
|
|
155 |
|
|
|
163 |
|
|
|
527 |
|
|
|
543 |
|
Industry Solutions |
|
|
310 |
|
|
|
229 |
|
|
|
7 |
|
|
|
12 |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
|
305 |
|
|
|
219 |
|
|
|
20 |
|
|
|
26 |
|
|
|
42 |
|
|
|
45 |
|
|
|
367 |
|
|
|
290 |
|
Mobility |
|
|
(33 |
) |
|
|
175 |
|
|
|
2 |
|
|
|
1 |
|
|
|
(9 |
) |
|
|
(6 |
) |
|
|
(26 |
) |
|
|
180 |
|
|
|
3 |
|
|
|
5 |
|
|
|
58 |
|
|
|
45 |
|
|
|
35 |
|
|
|
230 |
|
Energy Sector |
|
|
968 |
|
|
|
1,224 |
|
|
|
80 |
|
|
|
38 |
|
|
|
(4 |
) |
|
|
7 |
|
|
|
892 |
|
|
|
1,179 |
|
|
|
59 |
|
|
|
70 |
|
|
|
181 |
|
|
|
176 |
|
|
|
1,132 |
|
|
|
1,425 |
|
Fossil Power Generation |
|
|
(91 |
) |
|
|
576 |
|
|
|
58 |
|
|
|
21 |
|
|
|
(5 |
) |
|
|
(3 |
) |
|
|
(144 |
) |
|
|
558 |
|
|
|
12 |
|
|
|
23 |
|
|
|
62 |
|
|
|
65 |
|
|
|
(70 |
) |
|
|
646 |
|
Renewable Energy |
|
|
159 |
|
|
|
84 |
|
|
|
4 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
155 |
|
|
|
81 |
|
|
|
6 |
|
|
|
6 |
|
|
|
14 |
|
|
|
12 |
|
|
|
175 |
|
|
|
99 |
|
Oil & Gas |
|
|
239 |
|
|
|
139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
239 |
|
|
|
140 |
|
|
|
21 |
|
|
|
21 |
|
|
|
41 |
|
|
|
40 |
|
|
|
301 |
|
|
|
201 |
|
Power Transmission |
|
|
416 |
|
|
|
227 |
|
|
|
18 |
|
|
|
12 |
|
|
|
1 |
|
|
|
7 |
|
|
|
397 |
|
|
|
208 |
|
|
|
7 |
|
|
|
9 |
|
|
|
38 |
|
|
|
39 |
|
|
|
442 |
|
|
|
256 |
|
Power Distribution |
|
|
243 |
|
|
|
197 |
|
|
|
1 |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
5 |
|
|
|
243 |
|
|
|
190 |
|
|
|
9 |
|
|
|
11 |
|
|
|
22 |
|
|
|
19 |
|
|
|
274 |
|
|
|
220 |
|
Healthcare Sector |
|
|
999 |
|
|
|
943 |
|
|
|
22 |
|
|
|
52 |
|
|
|
23 |
|
|
|
27 |
|
|
|
954 |
|
|
|
864 |
|
|
|
216 |
|
|
|
157 |
|
|
|
243 |
|
|
|
161 |
|
|
|
1,413 |
|
|
|
1,182 |
|
Imaging & IT |
|
|
667 |
|
|
|
705 |
|
|
|
5 |
|
|
|
2 |
|
|
|
2 |
|
|
|
9 |
|
|
|
660 |
|
|
|
694 |
|
|
|
94 |
|
|
|
95 |
|
|
|
66 |
|
|
|
72 |
|
|
|
820 |
|
|
|
861 |
|
Workflow & Solutions |
|
|
131 |
|
|
|
118 |
|
|
|
2 |
|
|
|
|
|
|
|
4 |
|
|
|
5 |
|
|
|
125 |
|
|
|
113 |
|
|
|
4 |
|
|
|
4 |
|
|
|
14 |
|
|
|
16 |
|
|
|
143 |
|
|
|
133 |
|
Diagnostics |
|
|
198 |
|
|
|
99 |
|
|
|
4 |
|
|
|
5 |
|
|
|
7 |
|
|
|
11 |
|
|
|
187 |
|
|
|
83 |
|
|
|
118 |
|
|
|
57 |
|
|
|
160 |
|
|
|
71 |
|
|
|
465 |
|
|
|
211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Sectors |
|
|
5,035 |
|
|
|
4,670 |
|
|
|
115 |
|
|
|
110 |
|
|
|
19 |
|
|
|
17 |
|
|
|
4,901 |
|
|
|
4,543 |
|
|
|
518 |
|
|
|
401 |
|
|
|
911 |
|
|
|
806 |
|
|
|
6,330 |
|
|
|
5,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Equity Investments (SEI) |
|
|
41 |
|
|
|
(150 |
) |
|
|
41 |
|
|
|
(150 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross-Sector Businesses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens IT Solutions and Services |
|
|
99 |
|
|
|
172 |
|
|
|
24 |
|
|
|
9 |
|
|
|
9 |
|
|
|
4 |
|
|
|
66 |
|
|
|
159 |
|
|
|
35 |
|
|
|
44 |
|
|
|
127 |
|
|
|
163 |
|
|
|
228 |
|
|
|
366 |
|
Siemens Financial Services (SFS) |
|
|
237 |
|
|
|
277 |
|
|
|
48 |
|
|
|
45 |
|
|
|
155 |
|
|
|
222 |
|
|
|
34 |
|
|
|
10 |
|
|
|
2 |
|
|
|
4 |
|
|
|
208 |
|
|
|
189 |
|
|
|
244 |
|
|
|
203 |
|
Reconciliation to consolidated financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operations |
|
|
(138 |
) |
|
|
(153 |
) |
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
(17 |
) |
|
|
(138 |
) |
|
|
(141 |
) |
|
|
28 |
|
|
|
35 |
|
|
|
115 |
|
|
|
110 |
|
|
|
5 |
|
|
|
4 |
|
Siemens Real Estate (SRE) |
|
|
302 |
|
|
|
180 |
|
|
|
|
|
|
|
9 |
|
|
|
(38 |
) |
|
|
(69 |
) |
|
|
340 |
|
|
|
240 |
|
|
|
1 |
|
|
|
|
|
|
|
115 |
|
|
|
114 |
|
|
|
456 |
|
|
|
354 |
|
Corporate items and pensions |
|
|
(1,038 |
) |
|
|
(1,182 |
) |
|
|
53 |
|
|
|
76 |
|
|
|
108 |
|
|
|
109 |
|
|
|
(1,199 |
) |
|
|
(1,367 |
) |
|
|
62 |
|
|
|
8 |
|
|
|
22 |
|
|
|
23 |
|
|
|
(1,115 |
) |
|
|
(1,336 |
) |
Eliminations, Corporate Treasury and other reconciling items |
|
|
(184 |
) |
|
|
(254 |
) |
|
|
2 |
|
|
|
1 |
|
|
|
(134 |
) |
|
|
(257 |
) |
|
|
(52 |
) |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
(50 |
) |
|
|
(46 |
) |
|
|
(102 |
) |
|
|
(44 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
4,354 |
|
|
|
3,560 |
|
|
|
283 |
|
|
|
105 |
|
|
|
119 |
|
|
|
9 |
|
|
|
3,952 |
|
|
|
3,446 |
|
|
|
646 |
|
|
|
492 |
|
|
|
1,448 |
|
|
|
1,359 |
|
|
|
6,046 |
|
|
|
5,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Profit of the Sectors and Divisions as well as of SEI, Siemens IT Solutions and Services and
Other Operations is earnings before financing interest, certain pension costs and income taxes,
whereas certain other items not considered performance indicative by Management may be excluded.
Profit of SFS and SRE is Income before income taxes. |
(2) |
|
Includes impairment of investments accounted for using the equity method. |
(3) |
|
Includes impairment of non-current available-for-sale financial assets. |
(4) |
|
Adjusted EBIT is Income from continuing operations before income taxes less Financial income
(expense), net and Income (loss) from investments accounted for using the equity method, net. |
(5) |
|
Amortization and impairments of intangible assets other than goodwill. |
(6) |
|
Includes impairments of goodwill of
70 and 60 for the nine months ended June 30, 2008 and
2007, respectively. |
22
Liquidity, capital resources and capital requirements
Cash flow First nine months of fiscal 2008 compared to first nine months of fiscal 2007
The following discussion presents an analysis of Siemens cash flows for the first nine months
of fiscal 2008 and 2007. The table below presents cash flows for both continuing and discontinued
operations. The latter category includes SV, which was sold to Continental AG between the periods
under review, as well as the former Com activities, particularly the enterprise networks business,
which is held for sale and the carrier-related business which was transferred
into NSN. For further information on discontinued operations, see Notes to Interim Consolidated
Financial Statements.
Siemens reports as a performance measure, Free cash flow, which is defined as Net cash
provided by (used in) operating activities less cash used for Additions to intangible assets and
property, plant and equipment. We believe this measure is helpful to our investors as an indicator
of our ability to generate cash from operations and to pay for discretionary and non-discretionary
expenditures not included in the measure, such as dividends, debt repayment or acquisitions. We
also use Free cash flow to compare cash generation among the segments of our business. For further
information about this measure, refer to Notes to Interim Consolidated Financial Statements
Segment information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing and |
|
|
|
|
|
Continuing operations |
|
|
Discontinued operations |
|
|
discontinued operations |
|
|
|
|
|
Nine months ended June 30, |
|
( in millions) |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Net cash provided by (used in): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
A |
|
|
5,083 |
|
|
|
6,229 |
|
|
|
(667 |
) |
|
|
(2,252 |
) |
|
|
4,416 |
|
|
|
3,977 |
|
Investing activities |
|
|
|
|
(7,409 |
) |
|
|
(9,289 |
) |
|
|
10,697 |
|
|
|
(888 |
) |
|
|
3,288 |
|
|
|
(10,177 |
) |
Herein: Additions to
intangible assets and
property, plant and
equipment |
|
B |
|
|
(2,130 |
) |
|
|
(2,027 |
) |
|
|
(148 |
) |
|
|
(472 |
) |
|
|
(2,278 |
) |
|
|
(2,499 |
) |
Free cash flow* |
|
A+B |
|
|
2,953 |
|
|
|
4,202 |
|
|
|
(815 |
) |
|
|
(2,724 |
) |
|
|
2,138 |
|
|
|
1,478 |
|
|
|
|
* |
|
The closest comparable financial measure under IFRS is Net cash provided by (used in)
operating activities. Net cash provided by (used in) operating activities from continuing
operations as well as from continuing and discontinued operations is reported within the
Consolidated Statements of Cash Flow for Siemens. Other companies that report Free cash flow
may define and calculate it differently. |
Operating activities provided net cash of 4.416 billion in the first nine months, compared to
net cash provided of 3.977 billion in the same period of the prior-year. These results include
both continuing and discontinued operations. Within the total, continuing operations provided net
cash of 5.083 billion compared to 6.229 billion in the same period a year earlier. The prior-year
period benefited from a substantial decrease in receivables of approximately 2.2 billion primarily
related to the SV carve-out and the transfer of carrier activities into NSN, only partly offset by
a 419 million penalty payment related to a European Union antitrust investigation. The current
period includes a higher build-up in inventories, especially for Industry and Energy, which was
partly offset by higher billings in excess of costs for these two Sectors. Discontinued operations
improved to net cash used of 667 million in the current period, compared to net cash used of
2.252 billion in the prior period which included a substantially higher build up of net working
capital, particularly receivables related to NSN and SV, as discussed above. The first nine months
of fiscal 2008 include a 201 million payment for a previously disclosed fine imposed by the Munich
district court, which is related to the investigation of former Com activities by the Munich Office
of Public Prosecution.
Investing activities in continuing and discontinued operations provided net cash of 3.288
billion in the first nine months of fiscal 2008 compared to net cash used of 10.177 billion in the
prior-year period. Within the total, net cash used in investing activities for continuing
operations amounted to 7.409 billion in the current period and to 9.289 billion in the prior-year
period. Cash outflows in the current period primarily related to the acquisition of Dade Behring at
Healthcare for approximately 4.4 billion (net of 69 million cash acquired), while the prior-year
period included 4.2 billion related to the acquisition of Bayers diagnostic business at
Healthcare, 2.7 billion for the UGS acquisition at Industry as well as a payment to acquire AG
Kühnle, Kopp & Kausch at Energy. Discontinued operations provided 10.697 billion in net cash
during the current period, due primarily to proceeds of approximately 11.4 billion from the sale
of SV.
Free cash flow from continuing and discontinued operations for Siemens amounted to 2.138
billion in the first nine months, compared to 1.478 billion in the same period a year earlier.
Within the total, Free cash flow for continuing operations in the first nine months amounted to
2.953 billion compared to 4.202 billion a year earlier. The change year-over-year was due to a
reduction in Net Working Capital in the prior-year period including effects relating to the
carve-out of SV and the transfer of carrier activities into NSN. Cash used for additions to intangible assets and property, plant and equipment remained stable
year-over-year.
23
The cash conversion rate for continuing operations, calculated as Free cash flow
from continuing operations divided by income from continuing operations, was 0.95 for the first
nine months of fiscal 2008, above the target for the period. Free cash flow from discontinued
operations amounted to (815) million and (2.724) billion for the first nine months ended June 30,
2008 and 2007, respectively.
Financing activities from continuing and discontinued operations used net cash of 4.500
billion compared to net cash provided of 1.849 billion in the first nine months a year earlier. In
the current period the Company incurred cash outflows of 3.264 billion for the purchase of common
stock, including approximately
2.9 billion
in total during the first nine months of fiscal 2008 for purchases
under the first two tranches of the share
buyback program. In addition short-term debt was reduced by 3.616 billion, mainly due to repayment
of commercial paper and medium-term notes as well as repayment of debt originally raised by Dade
Behring in the amount of 0.4 billion. The exercise of three long term capital market transactions
provided net cash of 4.988 billion (for further information refer to Capital resources and
capital requirements). In the first nine months a year earlier, changes in short-term debt
provided net cash of 6.759 billion, mainly due to the issuance of commercial paper, whereas 2.4
billion (1.4 billion nominal) in cash was used to buy back a portion of the 2.5 billion
convertible bond as well as cash used for the redemption of a CHF250 million bond and a 991
million bond. Dividends paid to shareholders (for fiscal 2007) in the current nine months amounted
to 1.462 billion, compared 1.292 billion (paid for fiscal 2006) in the prior-year period.
Capital resources and requirements
Our capital resources consist of a variety of short and long-term financial instruments
including loans from financial institutions, commercial paper, medium-term notes and bonds. In
addition, other capital resources consist of liquid resources such as cash and cash equivalents,
future cash flows from operating activities and current available-for-sale financial assets.
Total debt as stated on the Consolidated Balance Sheets relates to our commercial paper,
medium-term notes, bonds, loans from banks and other financial indebtedness such as obligations
under finance leases. Total liquidity refers to the liquid financial assets we had available at the
respective balance sheet dates to fund our business operations and pay for near term obligations.
Total liquidity comprises Cash and cash equivalents and current Available-for-sale financial
assets. Net debt results from total debt less total liquidity. We use the net debt measure for
internal corporate finance management, as well as for external communication with investors,
analysts and rating agencies.
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
September 30, |
|
( in millions) |
|
2008 |
|
|
2007 |
|
Short-term debt and current maturities of long-term debt |
|
|
1,998 |
|
|
|
5,637 |
|
Long-term debt |
|
|
13,288 |
|
|
|
9,860 |
|
Total debt |
|
|
15,286 |
|
|
|
15,497 |
|
Cash and cash equivalents |
|
|
7,735 |
|
|
|
4,005 |
|
Available-for-sale financial assets (current) |
|
|
149 |
|
|
|
193 |
|
Total liquidity |
|
|
7,884 |
|
|
|
4,198 |
|
|
|
|
|
|
|
|
Net debt* |
|
|
7,402 |
|
|
|
11,299 |
|
|
|
|
* |
|
A positive net of Total liquidity and Total debt should not be interpreted as signifying that
the relevant amount is entirely free for discretionary application. |
Net debt was 7.402 billion as of June 30, 2008, compared to 11.299 billion as of September
30, 2007. In the third quarter of fiscal 2008 we executed three capital market transactions
classified as long-term debt and amounting to 5 billion, including an update on our medium-term
notes program of 3.4 billion in three tranches, a 500 million extendible note issue and a 1.1
billion assignable loan issue (Schuldscheindarlehen).
Our capital requirements include scheduled debt service, regular capital spending, ongoing
cash requirements from operating activities and capital requirements for our share buyback program.
For further information regarding the capital market transactions and capital requirements
please refer to Cash flow First nine months of fiscal 2008 compared to first nine months of
fiscal 2007 as well as to Notes to Interim Consolidated Financial Statements.
24
Pension plan funding
At the end of the first nine months of fiscal 2008, the combined funding status of Siemens
principal pension plans showed an underfunding of 0.4 billion, compared to an underfunding of 1.0
billion at the end of fiscal 2007. Positive effects which contributed to the improvement in funding
status are a significant increase in the discount rate assumption at June 30, 2008, which reduced
Siemens estimated defined benefit obligation (DBO), contributions and the disposal of Siemens VDO
pension liabilities. Taken together, these factors more than offset the negative effects of service
and interest cost on the defined benefit obligation and a negative actual return on plan assets.
While fixed-income investments showed an almost neutral performance in the first nine months, a
negative performance in equity investments resulted in an actual return on plan assets of a loss of
(1,538) million. This represents a loss of 9.1% return on an annualized basis, compared to the
expected annual return of 6.5%.
The fair value of plan assets of Siemens principal funded pension plans as of June 30, 2008,
was 21.1 billion, compared to 24.0 billion on September 30, 2007. In the first nine months of
fiscal 2008, employer contributions amounted to 502 million compared to 623 million in the first
nine months of the prior fiscal year. Beside the negative actual return on plan assets, the
decrease in plan assets was due to benefits paid during the nine-month period, currency translation
effects and the disposal of Siemens VDO pension assets.
The estimated DBO for Siemens principal pension plans amounted to 21.5 billion as of June
30, 2008, approximately 3.5 billion lower than the DBO of 25.0 billion as of September 30, 2007.
The difference is due to a significant increase in the discount rate assumption at June 30, 2008,
currency translation effects and the disposal of Siemens VDO pension liabilities. Altogether these
factors strongly outweighed the negative effect of service and interest cost less benefits paid
during the first nine months of the current period.
For more information on Siemens pension plans, see Notes to Interim Consolidated Financial
Statements.
Risk management
Within the scope of its entrepreneurial activities and the variety of its operations, Siemens
is exposed to numerous risks which could negatively affect business development. For the early
recognition and successful management of relevant risks we employ a number of coordinated risk
management and control systems. Risk management facilitates the sustainable protection of our
future corporate success as an integral part of all decisions and business processes of the
Company.
In Siemens Annual Report for fiscal 2007 we described the risks which could have a material
adverse effect on our financial condition or results of operations and also the design of our risk
management system.
For significant developments regarding project risks, risks related to portfolio activities,
risks related to Siemens transformation programs and legal, compliance and regulatory
developments, please refer to the sections entitled Segment information analysis, Legal
proceedings and Outlook within this Interim Report.
During the first nine months of fiscal 2008 we identified no further significant risks besides
those presented in the Annual Report for fiscal 2007 and the sections entitled Segment information
analysis, Legal proceedings and Outlook within this Interim Report. Additional risks not known
to us or that we currently consider immaterial could also impair our business operations. We do not
expect to incur any risks that alone or in combination would appear to jeopardize the continuity of
the Companys business.
For information concerning forward-looking statements and additional information, please also
refer to Outlook and the Disclaimer at the end of the Interim group management report.
Legal
proceedings
For information on legal proceedings, see Notes to Interim Consolidated Financial
Statements.
25
Subsequent
events
At the end of July 2008, Siemens announced the sale of a 51% stake in Siemens Enterprise
Communications (SEN) to The Gores Group, a U.S.-based financial and operational management firm.
The Gores Group will contribute two businesses, which will complement the business of SEN. The
transaction, which is subject to the approval of regulatory authorities, is expected to close by
the end of the current fiscal year and to result in a substantial
negative financial impact. Siemens and The Gores Group together have
committed to contribute a financial investment totaling
350 million.
At the end
of July, the Division Osram completed the sale of its Global Tungsten
& Powders unit; the regulatory approvals have been issued.
Siemens expects a gain as a result of this transaction.
At the
beginning of August 2008, Siemens signed an agreement to transfer an 80.2%
stake in Siemens Home and Office Communication Devices GmbH & Co.
KG (SHC), reported in Other Operations, to ARQUES Industries AG. The
transaction, which is subject to regulatory approval, is expected to
close on October 1, 2008.
Outlook
Siemens confirms its full-year outlook for fiscal 2008. Organic revenue is expected to grow at
twice the rate of global GDP growth, and Group Profit from Operations and Income from continuing
operations are expected to match the levels achieved in fiscal 2007. Within discontinued
operations, divestment of the enterprise networks business is expected to result in a substantial
financial impact in fiscal 2008.
This outlook excludes earnings impacts that may arise from legal and regulatory matters, which
are not yet quantifiable, and charges that may result from Siemens transformation programs,
including the previously announced SG&A reduction program. Based on the progress of labor
negotiations, Siemens intends to book material charges under the SG&A program in the fourth quarter
of fiscal 2008 within Corporate Items.
Siemens expects more challenging conditions in the global economy in fiscal 2009 and expects
to grow at twice the rate of global GDP. Total Sectors profit is expected to be in the range from
8.0 to 8.5 billion in fiscal 2009. Growth in income from continuing operations is expected to
exceed growth in Total Sectors profit. This outlook excludes earnings impacts that may arise from
legal and regulatory matters and charges for the SG&A reduction program.
26
Earnings before interest and taxes, or EBIT (adjusted); Earnings before interest, taxes,
depreciation and amortization, or EBITDA (adjusted); Return on capital employed (ROCE); Return on
equity (ROE); Free cash flow; and Cash conversion rate are non-GAAP financial measures. Information
for a reconciliation of these amounts to the most directly comparable IFRS financial measures is
available on our Investor Relations website under www.siemens.com/ir -> Financial Publications.
Profit Total Sectors is reconciled to Income from continuing operations before income taxes
in the table Segment Information.
This document contains forward-looking statements and information that is, statements
related to future, not past, events. These statements may be identified by words such as expects,
looks forward to, anticipates, intends, plans, believes, seeks, estimates, will,
project or words of similar meaning. Such statements are based on our current expectations and
certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of
factors, many of which are beyond Siemens control, affect our operations, performance, business
strategy and results and could cause the actual results, performance or achievements of Siemens to
be materially different from any future results, performance or achievements that may be expressed
or implied by such forward-looking statements. For us, particular uncertainties arise, among
others, from changes in general economic and business conditions (including margin developments in
major business areas); the challenges of integrating major acquisitions and implementing joint
ventures and other significant portfolio measures; changes in currency exchange rates and interest
rates; introduction of competing products or technologies by other companies; lack of acceptance of
new products or services by customers targeted by Siemens; changes in business strategy; the
outcome of pending investigations and legal proceedings, especially the corruption investigations
we are currently subject to in Germany, the United States and elsewhere; the potential impact of
such investigations and proceedings on our ongoing business including our relationships with
governments and other customers; the potential impact of such matters on our financial statements;
as well as various other factors. More detailed information about certain of these factors is
contained throughout this report and in our other filings with the SEC, which are available on the
Siemens website, www.siemens.com, and on the SECs website, www.sec.gov. Should one or more of
these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described in the relevant forward-looking statement as
expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens does
not intend or assume any obligation to update or revise these forward-looking statements in light
of developments which differ from those anticipated.
27
SIEMENS
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the three and nine months ended June 30, 2008 and 2007
(in millions of , per share amounts in )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months |
|
Nine months |
|
|
|
|
|
|
ended June 30, |
|
ended June 30, |
|
|
|
|
|
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
|
|
Revenue |
|
|
19,182 |
|
|
|
17,517 |
|
|
|
55,676 |
|
|
|
52,247 |
|
Cost of goods sold and services rendered |
|
|
(13,306 |
) |
|
|
(12,291 |
) |
|
|
(39,579 |
) |
|
|
(37,293 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
5,876 |
|
|
|
5,226 |
|
|
|
16,097 |
|
|
|
14,954 |
|
Research and development expenses |
|
|
(916 |
) |
|
|
(898 |
) |
|
|
(2,681 |
) |
|
|
(2,437 |
) |
Marketing, selling and general administrative expenses |
|
|
(3,195 |
) |
|
|
(3,069 |
) |
|
|
(9,493 |
) |
|
|
(8,667 |
) |
Other operating income |
|
|
259 |
|
|
|
144 |
|
|
|
636 |
|
|
|
462 |
|
Other operating expense |
|
|
(144 |
) |
|
|
(207 |
) |
|
|
(607 |
) |
|
|
(866 |
) |
Income (loss) from investments accounted for using the equity method, net |
|
|
74 |
|
|
|
(222 |
) |
|
|
283 |
|
|
|
105 |
|
Financial income (expense), net |
|
|
94 |
|
|
|
(32 |
) |
|
|
119 |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes |
|
|
2,048 |
|
|
|
942 |
|
|
|
4,354 |
|
|
|
3,560 |
|
Income taxes |
|
|
(573 |
) |
|
|
(334 |
) |
|
|
(1,236 |
) |
|
|
(1,045 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
1,475 |
|
|
|
608 |
|
|
|
3,118 |
|
|
|
2,515 |
|
Income (loss) from discontinued operations, net of income taxes |
|
|
(56 |
) |
|
|
1,457 |
|
|
|
5,188 |
|
|
|
1,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
1,419 |
|
|
|
2,065 |
|
|
|
8,306 |
|
|
|
4,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
45 |
|
|
|
39 |
|
|
|
116 |
|
|
|
151 |
|
Shareholders of Siemens AG |
|
|
1,374 |
|
|
|
2,026 |
|
|
|
8,190 |
|
|
|
3,961 |
|
Basic earnings per share
Income from continuing operations |
|
|
1.61 |
|
|
|
0.64 |
|
|
|
3.33 |
|
|
|
2.68 |
|
Income (loss) from discontinued operations |
|
|
(0.06 |
) |
|
|
1.61 |
|
|
|
5.74 |
|
|
|
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
1.55 |
|
|
|
2.25 |
|
|
|
9.07 |
|
|
|
4.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
Income from continuing operations |
|
|
1.61 |
|
|
|
0.63 |
|
|
|
3.32 |
|
|
|
2.60 |
|
Income (loss) from discontinued operations |
|
|
(0.07 |
) |
|
|
1.55 |
|
|
|
5.72 |
|
|
|
1.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
1.54 |
|
|
|
2.18 |
|
|
|
9.04 |
|
|
|
4.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE RECOGNIZED IN EQUITY (unaudited)
For the three and nine months ended June 30, 2008 and 2007
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months |
|
Nine months |
|
|
ended June 30, |
|
ended June 30, |
|
|
2008 |
|
2007 |
|
2008 |
|
2007 |
Net income |
|
|
1,419 |
|
|
|
2,065 |
|
|
|
8,306 |
|
|
|
4,112 |
|
Currency translation differences |
|
|
33 |
|
|
|
47 |
|
|
|
(779 |
) |
|
|
(214 |
) |
Available-for-sale financial assets |
|
|
(29 |
) |
|
|
(12 |
) |
|
|
(101 |
) |
|
|
(14 |
) |
Derivative financial instruments |
|
|
(116 |
) |
|
|
(17 |
) |
|
|
68 |
|
|
|
36 |
|
Actuarial gains and losses on pension plans and similar commitments |
|
|
(337 |
) |
|
|
1,144 |
|
|
|
(150 |
) |
|
|
1,769 |
|
Revaluation effect related to step acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income and expense recognized directly in equity, net of tax (1)(2) |
|
|
(449 |
) |
|
|
1,162 |
|
|
|
(962 |
) |
|
|
1,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income and expense recognized in equity |
|
|
970 |
|
|
|
3,227 |
|
|
|
7,344 |
|
|
|
5,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest |
|
|
38 |
|
|
|
86 |
|
|
|
79 |
|
|
|
183 |
|
Shareholders of Siemens AG |
|
|
932 |
|
|
|
3,141 |
|
|
|
7,265 |
|
|
|
5,509 |
|
|
|
|
(1) |
|
Includes income and expense resulting from investments accounted for using the equity method of
(110) and (1) for the three months ended June 30, 2008 and 2007, respectively, and 17
and (31)
for the nine months ended June 30, 2008 and 2007, respectively. |
|
(2) |
|
Includes minority interest relating to currency translation differences of (7) and 47 for the
three months ended June 30, 2008 and 2007, respectively, and (37) and 32 for the nine months
ended June 30, 2008 and 2007, respectively. |
The accompanying Notes are an integral part of these Interim Consolidated Financial
Statements.
28
SIEMENS
CONSOLIDATED BALANCE SHEETS (unaudited)
As of June 30, 2008 and September 30, 2007
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
6/30/08 |
|
|
9/30/07 |
|
ASSETS
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
7,735 |
|
|
|
4,005 |
|
Available-for-sale financial assets |
|
|
149 |
|
|
|
193 |
|
Trade and other receivables |
|
|
15,106 |
|
|
|
14,620 |
|
Other current financial assets |
|
|
3,375 |
|
|
|
2,932 |
|
Inventories |
|
|
14,921 |
|
|
|
12,930 |
|
Income tax receivables |
|
|
514 |
|
|
|
398 |
|
Other current assets |
|
|
1,426 |
|
|
|
1,322 |
|
Assets classified as held for disposal |
|
|
2,159 |
|
|
|
11,532 |
|
|
|
|
|
|
|
|
Total current assets |
|
|
45,385 |
|
|
|
47,932 |
|
|
|
|
|
|
|
|
Goodwill |
|
|
14,990 |
|
|
|
12,501 |
|
Other intangible assets |
|
|
5,172 |
|
|
|
4,619 |
|
Property, plant and equipment |
|
|
10,556 |
|
|
|
10,555 |
|
Investments accounted for using the equity method |
|
|
6,958 |
|
|
|
7,016 |
|
Other financial assets |
|
|
6,655 |
|
|
|
5,561 |
|
Deferred tax assets |
|
|
1,939 |
|
|
|
2,594 |
|
Other assets |
|
|
1,175 |
|
|
|
777 |
|
|
|
|
|
|
|
|
Total assets |
|
|
92,830 |
|
|
|
91,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
Current liabilities |
|
|
|
|
|
|
|
|
Short-term debt and current maturities of long-term debt |
|
|
1,998 |
|
|
|
5,637 |
|
Trade payables |
|
|
8,079 |
|
|
|
8,382 |
|
Other current financial liabilities |
|
|
2,431 |
|
|
|
2,553 |
|
Current provisions |
|
|
3,739 |
|
|
|
3,581 |
|
Income tax payables |
|
|
1,927 |
|
|
|
2,141 |
|
Other current liabilities |
|
|
18,984 |
|
|
|
17,058 |
|
Liabilities associated with assets classified as held for disposal |
|
|
1,728 |
|
|
|
4,542 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
38,886 |
|
|
|
43,894 |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
13,288 |
|
|
|
9,860 |
|
Pension plans and similar commitments |
|
|
2,666 |
|
|
|
2,780 |
|
Deferred tax liabilities |
|
|
704 |
|
|
|
580 |
|
Provisions |
|
|
2,316 |
|
|
|
2,103 |
|
Other financial liabilities |
|
|
384 |
|
|
|
411 |
|
Other liabilities |
|
|
2,167 |
|
|
|
2,300 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
60,411 |
|
|
|
61,928 |
|
|
|
|
|
|
|
|
Equity |
Common stock, no par value (1) |
|
|
2,743 |
|
|
|
2,743 |
|
Additional paid-in capital |
|
|
6,055 |
|
|
|
6,080 |
|
Retained earnings |
|
|
27,020 |
|
|
|
20,453 |
|
Other components of equity |
|
|
(1,055 |
) |
|
|
(280 |
) |
Treasury shares, at cost (2) |
|
|
(2,921 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total equity attributable to shareholders of Siemens AG |
|
|
31,842 |
|
|
|
28,996 |
|
|
|
|
|
|
|
|
Minority interest |
|
|
577 |
|
|
|
631 |
|
|
|
|
|
|
|
|
Total equity |
|
|
32,419 |
|
|
|
29,627 |
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
92,830 |
|
|
|
91,555 |
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Authorized: 1,137,913,421 and 1,137,913,421 shares, respectively. |
|
|
Issued: 914,203,421 and 914,203,421 shares, respectively. |
(2) |
|
37,295,082 and 383 shares, respectively. |
The accompanying Notes are an integral part of these Interim Consolidated Financial
Statements.
29
SIEMENS
CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited)
For the nine months ended June 30, 2008 and 2007
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
2008 |
|
2007 |
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net income |
|
|
8,306 |
|
|
|
4,112 |
|
Adjustments to reconcile net income to cash provided |
|
|
|
|
|
|
|
|
Amortization, depreciation and impairments |
|
|
2,175 |
|
|
|
2,740 |
|
Income taxes |
|
|
1,141 |
|
|
|
990 |
|
Interest (income) expense, net |
|
|
(37 |
) |
|
|
114 |
|
(Gains) on sales and disposals of businesses, intangibles and property, plant and equipment, net |
|
|
(5,964 |
) |
|
|
(2,007 |
) |
(Gains) on sales of investments, net (1) |
|
|
(23 |
) |
|
|
(84 |
) |
(Gains) losses on sales and impairments of current available-for-sale financial assets, net |
|
|
(13 |
) |
|
|
2 |
|
(Income) from investments (1) |
|
|
(341 |
) |
|
|
(198 |
) |
Other non-cash (income) expenses |
|
|
500 |
|
|
|
74 |
|
Change in current assets and liabilities |
|
|
|
|
|
|
|
|
(Increase) decrease in inventories |
|
|
(2,396 |
) |
|
|
(1,487 |
) |
(Increase) decrease in trade and other receivables |
|
|
(648 |
) |
|
|
(709 |
) |
(Increase) decrease in other current assets |
|
|
(214 |
) |
|
|
(199 |
) |
Increase (decrease) in trade payables |
|
|
(53 |
) |
|
|
61 |
|
Increase (decrease) in current provisions |
|
|
294 |
|
|
|
(226 |
) |
Increase (decrease) in other current liabilities |
|
|
2,509 |
|
|
|
2,103 |
|
Change in other assets and liabilities |
|
|
(378 |
) |
|
|
(943 |
) |
Income taxes paid |
|
|
(1,253 |
) |
|
|
(1,210 |
) |
Dividends received |
|
|
230 |
|
|
|
266 |
|
Interest received |
|
|
581 |
|
|
|
578 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities continuing and discontinued operations |
|
|
4,416 |
|
|
|
3,977 |
|
Net cash provided by (used in) operating activities continuing operations |
|
|
5,083 |
|
|
|
6,229 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Additions to intangible assets and property, plant and equipment |
|
|
(2,278 |
) |
|
|
(2,499 |
) |
Acquisitions |
|
|
(4,779 |
) |
|
|
(7,349 |
) |
Purchases of investments(1) |
|
|
(131 |
) |
|
|
(162 |
) |
Purchases of current available-for-sale financial assets |
|
|
(10 |
) |
|
|
(34 |
) |
(Increase) decrease in receivables from financing activities |
|
|
(1,484 |
) |
|
|
(553 |
) |
Proceeds from sales of investments, intangibles and property, plant and equipment (1) |
|
|
665 |
|
|
|
647 |
|
Proceeds from disposals of businesses |
|
|
11,257 |
|
|
|
(262 |
) |
Proceeds from sales of current available-for-sale financial assets |
|
|
48 |
|
|
|
35 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities continuing and discontinued operations |
|
|
3,288 |
|
|
|
(10,177 |
) |
Net cash provided by (used in) investing activities continuing operations |
|
|
(7,409 |
) |
|
|
(9,289 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock |
|
|
|
|
|
|
798 |
|
Purchase of common stock |
|
|
(3,264 |
) |
|
|
(101 |
) |
Proceeds from re-issuance of treasury stock |
|
|
244 |
|
|
|
66 |
|
Proceeds from issuance of long-term debt |
|
|
4,988 |
|
|
|
|
|
Repayment of long-term debt (including current maturities of long-term debt) |
|
|
(643 |
) |
|
|
(3,381 |
) |
Change in short-term debt |
|
|
(3,616 |
) |
|
|
6,759 |
|
Interest paid |
|
|
(654 |
) |
|
|
(881 |
) |
Dividends paid |
|
|
(1,462 |
) |
|
|
(1,292 |
) |
Dividends paid to minority shareholders |
|
|
(93 |
) |
|
|
(119 |
) |
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities continuing and discontinued operations |
|
|
(4,500 |
) |
|
|
1,849 |
|
Net cash provided by (used in) financing activities continuing operations |
|
|
6,237 |
|
|
|
(2,139 |
) |
Effect of exchange rates on cash and cash equivalents |
|
|
(178 |
) |
|
|
3 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
3,026 |
|
|
|
(4,348 |
) |
Cash and cash equivalents at beginning of period |
|
|
4,940 |
|
|
|
10,214 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
|
7,966 |
|
|
|
5,866 |
|
Less: Cash and cash equivalents of assets classified as held for disposal and discontinued operations at end of period |
|
|
231 |
|
|
|
612 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period (Consolidated balance sheets) |
|
|
7,735 |
|
|
|
5,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Investments include equity instruments either classified as non-current
available-for-sale financial assets or accounted for using the equity method. |
The accompanying Notes are an integral part of these Interim Consolidated Financial
Statements.
30
SIEMENS
CONSOLIDATED CHANGES IN EQUITY (unaudited)
For the nine months ended June 30, 2008 and 2007
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other components of equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
Currency |
|
|
for-sale |
|
|
Derivative |
|
|
|
|
|
|
Treasury |
|
|
attributable |
|
|
|
|
|
|
|
|
|
Common |
|
|
paid-in |
|
|
Retained |
|
|
translation |
|
|
financial |
|
|
financial |
|
|
|
|
|
|
shares |
|
|
to shareholders |
|
|
Minority |
|
|
Total |
|
|
|
stock |
|
|
capital |
|
|
earnings |
|
|
differences |
|
|
assets |
|
|
instruments |
|
|
Total |
|
|
at cost |
|
|
of Siemens AG |
|
|
interest |
|
|
equity |
|
Balance at October 1, 2006 |
|
|
2,673 |
|
|
|
5,662 |
|
|
|
16,702 |
|
|
|
91 |
|
|
|
96 |
|
|
|
(31 |
) |
|
|
156 |
|
|
|
|
|
|
|
25,193 |
|
|
|
702 |
|
|
|
25,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income and expense recognized in equity |
|
|
|
|
|
|
|
|
|
|
5,733 |
|
|
|
(246 |
) |
|
|
(14 |
) |
|
|
36 |
|
|
|
(224 |
) |
|
|
|
|
|
|
5,509 |
|
|
|
183 |
|
|
|
5,692 |
|
Dividends |
|
|
|
|
|
|
|
|
|
|
(1,292 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,292 |
) |
|
|
(130 |
) |
|
|
(1,422 |
) |
Issuance of common stock and share-based payment |
|
|
35 |
|
|
|
847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
882 |
|
|
|
|
|
|
|
882 |
|
Purchase of common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(101 |
) |
|
|
(101 |
) |
|
|
|
|
|
|
(101 |
) |
Re-issuance of treasury stock |
|
|
|
|
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101 |
|
|
|
94 |
|
|
|
|
|
|
|
94 |
|
Other changes in equity |
|
|
|
|
|
|
(1,188 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,188 |
) |
|
|
(142 |
) |
|
|
(1,330 |
) |
Balance at June 30, 2007 |
|
|
2,708 |
|
|
|
5,314 |
|
|
|
21,143 |
|
|
|
(155 |
) |
|
|
82 |
|
|
|
5 |
|
|
|
(68 |
) |
|
|
|
|
|
|
29,097 |
|
|
|
613 |
|
|
|
29,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at October 1, 2007 |
|
|
2,743 |
|
|
|
6,080 |
|
|
|
20,453 |
|
|
|
(475 |
) |
|
|
126 |
|
|
|
69 |
|
|
|
(280 |
) |
|
|
|
|
|
|
28,996 |
|
|
|
631 |
|
|
|
29,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income and expense recognized in equity |
|
|
|
|
|
|
|
|
|
|
8,040 |
|
|
|
(742 |
) |
|
|
(101 |
) |
|
|
68 |
|
|
|
(775 |
) |
|
|
|
|
|
|
7,265 |
|
|
|
79 |
|
|
|
7,344 |
|
Dividends |
|
|
|
|
|
|
|
|
|
|
(1,462 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,462 |
) |
|
|
(86 |
) |
|
|
(1,548 |
) |
Issuance of common stock and share-based payment |
|
|
|
|
|
|
57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57 |
|
|
|
|
|
|
|
57 |
|
Purchase of common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,264 |
) |
|
|
(3,264 |
) |
|
|
|
|
|
|
(3,264 |
) |
Re-issuance of treasury stock |
|
|
|
|
|
|
(67 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
343 |
|
|
|
276 |
|
|
|
|
|
|
|
276 |
|
Other changes in equity |
|
|
|
|
|
|
(15 |
) |
|
|
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(26 |
) |
|
|
(47 |
) |
|
|
(73 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2008 |
|
|
2,743 |
|
|
|
6,055 |
|
|
|
27,020 |
|
|
|
(1,217 |
) |
|
|
25 |
|
|
|
137 |
|
|
|
(1,055 |
) |
|
|
(2,921 |
) |
|
|
31,842 |
|
|
|
577 |
|
|
|
32,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
31
SIEMENS
SEGMENT INFORMATION (continuing operations unaudited)
As of and for the three months ended June 30, 2008 and 2007 and as of September 30, 2007
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets |
|
|
Amortization, |
|
|
|
|
|
|
|
|
|
|
|
External |
|
|
Intersegment |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free |
|
|
and property, plant |
|
|
depreciation and |
|
|
|
New orders |
|
|
revenue |
|
|
revenue |
|
|
revenue |
|
|
Profit(1) |
|
|
Assets(2) |
|
|
cash flow(3) |
|
|
and equipment |
|
|
impairments(4) |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
6/30/08 |
|
|
9/30/07 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Sectors |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industry |
|
|
11,508 |
|
|
|
9,149 |
|
|
|
9,117 |
|
|
|
8,503 |
|
|
|
306 |
|
|
|
248 |
|
|
|
9,423 |
|
|
|
8,751 |
|
|
|
1,143 |
|
|
|
822 |
|
|
|
12,216 |
|
|
|
11,836 |
|
|
|
895 |
|
|
|
724 |
|
|
|
255 |
|
|
|
239 |
|
|
|
251 |
|
|
|
228 |
|
Energy |
|
|
8,077 |
|
|
|
6,556 |
|
|
|
5,714 |
|
|
|
4,784 |
|
|
|
115 |
|
|
|
96 |
|
|
|
5,829 |
|
|
|
4,880 |
|
|
|
615 |
|
|
|
442 |
|
|
|
2,707 |
|
|
|
3,367 |
|
|
|
508 |
|
|
|
665 |
|
|
|
120 |
|
|
|
75 |
|
|
|
83 |
|
|
|
87 |
|
Healthcare |
|
|
2,801 |
|
|
|
2,517 |
|
|
|
2,667 |
|
|
|
2,424 |
|
|
|
10 |
|
|
|
7 |
|
|
|
2,677 |
|
|
|
2,431 |
|
|
|
326 |
|
|
|
307 |
|
|
|
12,620 |
|
|
|
8,234 |
|
|
|
311 |
|
|
|
372 |
|
|
|
112 |
|
|
|
109 |
|
|
|
160 |
|
|
|
113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Sectors |
|
|
22,386 |
|
|
|
18,222 |
|
|
|
17,498 |
|
|
|
15,711 |
|
|
|
431 |
|
|
|
351 |
|
|
|
17,929 |
|
|
|
16,062 |
|
|
|
2,084 |
|
|
|
1,571 |
|
|
|
27,543 |
|
|
|
23,437 |
|
|
|
1,714 |
|
|
|
1,761 |
|
|
|
487 |
|
|
|
423 |
|
|
|
494 |
|
|
|
428 |
|
Strategic Equity Investments (SEI) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
(301 |
) |
|
|
5,369 |
|
|
|
4,891 |
|
|
|
95 |
|
|
|
76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross-Sector Businesses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens IT Solutions and Services |
|
|
1,209 |
|
|
|
1,094 |
|
|
|
899 |
|
|
|
904 |
|
|
|
356 |
|
|
|
353 |
|
|
|
1,255 |
|
|
|
1,257 |
|
|
|
64 |
|
|
|
66 |
|
|
|
452 |
|
|
|
253 |
|
|
|
37 |
|
|
|
(64 |
) |
|
|
54 |
|
|
|
48 |
|
|
|
51 |
|
|
|
65 |
|
Siemens Financial Services (SFS) |
|
|
195 |
|
|
|
168 |
|
|
|
177 |
|
|
|
154 |
|
|
|
20 |
|
|
|
14 |
|
|
|
197 |
|
|
|
168 |
|
|
|
59 |
|
|
|
57 |
|
|
|
9,775 |
|
|
|
8,912 |
|
|
|
(108 |
) |
|
|
(25 |
) |
|
|
166 |
|
|
|
117 |
|
|
|
69 |
|
|
|
66 |
|
Reconciliation to consolidated financial statements |
Other Operations |
|
|
606 |
|
|
|
667 |
|
|
|
482 |
|
|
|
585 |
|
|
|
98 |
|
|
|
93 |
|
|
|
580 |
|
|
|
678 |
|
|
|
(20 |
) |
|
|
(56 |
) |
|
|
(904 |
) |
|
|
(704 |
) |
|
|
64 |
|
|
|
(122 |
) |
|
|
21 |
|
|
|
42 |
|
|
|
24 |
|
|
|
27 |
|
Siemens Real Estate (SRE) |
|
|
415 |
|
|
|
416 |
|
|
|
95 |
|
|
|
119 |
|
|
|
320 |
|
|
|
297 |
|
|
|
415 |
|
|
|
416 |
|
|
|
103 |
|
|
|
69 |
|
|
|
3,331 |
|
|
|
3,091 |
|
|
|
3 |
|
|
|
(20 |
) |
|
|
54 |
|
|
|
45 |
|
|
|
37 |
|
|
|
37 |
|
Corporate items and pensions |
|
|
31 |
|
|
|
18 |
|
|
|
31 |
|
|
|
44 |
|
|
|
2 |
|
|
|
3 |
|
|
|
33 |
|
|
|
47 |
|
|
|
(245 |
) |
|
|
(367 |
) |
|
|
(2,276 |
) |
|
|
(2,564 |
) |
|
|
(290 |
) |
|
|
(626 |
) |
|
|
13 |
|
|
|
20 |
|
|
|
29 |
|
|
|
10 |
|
Eliminations, Corporate Treasury and other
reconciling items |
|
|
(1,165 |
) |
|
|
(1,091 |
) |
|
|
|
|
|
|
|
|
|
|
(1,227 |
) |
|
|
(1,111 |
) |
|
|
(1,227 |
) |
|
|
(1,111 |
) |
|
|
2 |
|
|
|
(97 |
) |
|
|
49,540 |
|
|
|
54,239 |
|
|
|
32 |
|
|
|
963 |
|
|
|
(15 |
) |
|
|
(18 |
) |
|
|
(19 |
) |
|
|
(15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
23,677 |
|
|
|
19,494 |
|
|
|
19,182 |
|
|
|
17,517 |
|
|
|
|
|
|
|
|
|
|
|
19,182 |
|
|
|
17,517 |
|
|
|
2,048 |
|
|
|
942 |
|
|
|
92,830 |
|
|
|
91,555 |
|
|
|
1,547 |
|
|
|
1,943 |
|
|
|
780 |
|
|
|
677 |
|
|
|
685 |
|
|
|
618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Profit of the Sectors as well as of SEI, Siemens IT Solutions and Services
and Other Operations is earnings before financing interest, certain pension
costs and income taxes, whereas certain other items not considered
performance indicative by Management may be excluded. Profit of SFS and SRE
is Income before income taxes. |
|
(2) |
|
Assets of the Sectors as well as of SEI, Siemens IT Solutions and Services
and Other Operations is defined as Total assets less income tax assets, less
non-interest bearing liabilities/provisions other than tax liabilities.
Assets of SFS and SRE is Total assets. |
|
(3) |
|
Free cash flow represents net cash provided by (used in) operating
activities less additions to intangible assets and property, plant and
equipment. Free cash flow of the Sectors, SEI, Siemens IT Solutions and
Services and Other Operations primarily exclude income tax, financing
interest and certain pension related payments and proceeds. Free cash flow of
SFS, a financial services business, and of SRE includes related financing
interest payments and proceeds; income tax payments and proceeds of SFS and
SRE are excluded. |
|
(4) |
|
Amortization, depreciation and impairments contains amortization and
impairments of intangible assets other than goodwill and depreciation and
impairments of property, plant and equipment. Siemens Goodwill impairment
and impairment of non-current available-for-sale financial assets and
investments accounted for under the equity method amount to 3 and 35 for
the three months ended June 30, 2008 and 2007, respectively. |
Due to rounding, numbers presented may not add up precisely to totals provided.
32
SIEMENS
SEGMENT INFORMATION (continuing operations unaudited)
As of and for the nine months ended June 30, 2008 and 2007 and as of September 30, 2007
(in millions of )
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets |
|
|
Amortization, |
|
|
|
|
|
|
|
|
|
|
|
External |
|
|
Intersegment |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free |
|
|
and property, plant |
|
|
depreciation and |
|
|
|
New orders |
|
|
revenue |
|
|
revenue |
|
|
revenue |
|
|
Profit(1) |
|
|
Assets(2) |
|
|
cash flow(3) |
|
|
and equipment |
|
|
impairments(4) |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
6/30/08 |
|
|
9/30/07 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Sectors |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
Industry |
|
|
32,540 |
|
|
|
28,498 |
|
|
|
26,825 |
|
|
|
25,375 |
|
|
|
852 |
|
|
|
740 |
|
|
|
27,677 |
|
|
|
26,115 |
|
|
|
3,068 |
|
|
|
2,503 |
|
|
|
12,216 |
|
|
|
11,836 |
|
|
|
2,277 |
|
|
|
1,899 |
|
|
|
718 |
|
|
|
720 |
|
|
|
730 |
|
|
|
643 |
|
Energy |
|
|
26,182 |
|
|
|
22,477 |
|
|
|
15,565 |
|
|
|
14,060 |
|
|
|
263 |
|
|
|
278 |
|
|
|
15,828 |
|
|
|
14,337 |
|
|
|
968 |
|
|
|
1,224 |
|
|
|
2,707 |
|
|
|
3,367 |
|
|
|
1,595 |
|
|
|
1,491 |
|
|
|
296 |
|
|
|
249 |
|
|
|
240 |
|
|
|
246 |
|
Healthcare |
|
|
8,397 |
|
|
|
7,272 |
|
|
|
8,013 |
|
|
|
6,965 |
|
|
|
39 |
|
|
|
37 |
|
|
|
8,052 |
|
|
|
7,003 |
|
|
|
999 |
|
|
|
943 |
|
|
|
12,620 |
|
|
|
8,234 |
|
|
|
729 |
|
|
|
862 |
|
|
|
362 |
|
|
|
321 |
|
|
|
459 |
|
|
|
318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Sectors |
|
|
67,119 |
|
|
|
58,247 |
|
|
|
50,403 |
|
|
|
46,400 |
|
|
|
1,154 |
|
|
|
1,055 |
|
|
|
51,557 |
|
|
|
47,455 |
|
|
|
5,035 |
|
|
|
4,670 |
|
|
|
27,543 |
|
|
|
23,437 |
|
|
|
4,601 |
|
|
|
4,252 |
|
|
|
1,376 |
|
|
|
1,290 |
|
|
|
1,429 |
|
|
|
1,207 |
|
Strategic Equity Investments (SEI) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41 |
|
|
|
(150 |
) |
|
|
5,369 |
|
|
|
4,891 |
|
|
|
95 |
|
|
|
76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross-Sector Businesses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens IT Solutions and Services |
|
|
3,879 |
|
|
|
3,561 |
|
|
|
2,785 |
|
|
|
2,947 |
|
|
|
1,076 |
|
|
|
975 |
|
|
|
3,861 |
|
|
|
3,922 |
|
|
|
99 |
|
|
|
172 |
|
|
|
452 |
|
|
|
253 |
|
|
|
(102 |
) |
|
|
(193 |
) |
|
|
101 |
|
|
|
165 |
|
|
|
162 |
|
|
|
207 |
|
Siemens Financial Services (SFS) |
|
|
563 |
|
|
|
523 |
|
|
|
503 |
|
|
|
470 |
|
|
|
61 |
|
|
|
52 |
|
|
|
564 |
|
|
|
522 |
|
|
|
237 |
|
|
|
277 |
|
|
|
9,775 |
|
|
|
8,912 |
|
|
|
(28 |
) |
|
|
55 |
|
|
|
430 |
|
|
|
316 |
|
|
|
210 |
|
|
|
193 |
|
Reconciliation to consolidated financial statements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operations |
|
|
1,958 |
|
|
|
2,243 |
|
|
|
1,624 |
|
|
|
1,946 |
|
|
|
294 |
|
|
|
275 |
|
|
|
1,918 |
|
|
|
2,221 |
|
|
|
(138 |
) |
|
|
(153 |
) |
|
|
(904 |
) |
|
|
(704 |
) |
|
|
(213 |
) |
|
|
(265 |
) |
|
|
70 |
|
|
|
110 |
|
|
|
73 |
|
|
|
85 |
|
Siemens Real Estate (SRE) |
|
|
1,225 |
|
|
|
1,251 |
|
|
|
287 |
|
|
|
367 |
|
|
|
938 |
|
|
|
884 |
|
|
|
1,225 |
|
|
|
1,251 |
|
|
|
302 |
|
|
|
180 |
|
|
|
3,331 |
|
|
|
3,091 |
|
|
|
(5 |
) |
|
|
(12 |
) |
|
|
157 |
|
|
|
129 |
|
|
|
116 |
|
|
|
114 |
|
Corporate items and pensions |
|
|
85 |
|
|
|
88 |
|
|
|
74 |
|
|
|
117 |
|
|
|
9 |
|
|
|
8 |
|
|
|
83 |
|
|
|
125 |
|
|
|
(1,038 |
) |
|
|
(1,182 |
) |
|
|
(2,276 |
) |
|
|
(2,564 |
) |
|
|
(1,435 |
) |
|
|
(1,428 |
) |
|
|
31 |
|
|
|
56 |
|
|
|
84 |
|
|
|
31 |
|
Eliminations, Corporate Treasury and other
reconciling items |
|
|
(3,539 |
) |
|
|
(3,325 |
) |
|
|
|
|
|
|
|
|
|
|
(3,532 |
) |
|
|
(3,249 |
) |
|
|
(3,532 |
) |
|
|
(3,249 |
) |
|
|
(184 |
) |
|
|
(254 |
) |
|
|
49,540 |
|
|
|
54,239 |
|
|
|
40 |
|
|
|
1,717 |
|
|
|
(35 |
) |
|
|
(39 |
) |
|
|
(50 |
) |
|
|
(46 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens |
|
|
71,290 |
|
|
|
62,588 |
|
|
|
55,676 |
|
|
|
52,247 |
|
|
|
|
|
|
|
|
|
|
|
55,676 |
|
|
|
52,247 |
|
|
|
4,354 |
|
|
|
3,560 |
|
|
|
92,830 |
|
|
|
91,555 |
|
|
|
2,953 |
|
|
|
4,202 |
|
|
|
2,130 |
|
|
|
2,027 |
|
|
|
2,024 |
|
|
|
1,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Profit of the Sectors as well as of SEI, Siemens IT Solutions and Services
and Other Operations is earnings before financing interest, certain pension
costs and income taxes, whereas certain other items not considered
performance indicative by Management may be excluded. Profit of SFS and SRE
is Income before income taxes. |
|
(2) |
|
Assets of the Sectors as well as of SEI, Siemens IT Solutions and Services
and Other Operations is defined as Total assets less income tax assets, less
non-interest bearing liabilities/provisions other than tax liabilities.
Assets of SFS and SRE is Total assets. |
|
(3) |
|
Free cash flow represents net cash provided by (used in) operating
activities less additions to intangible assets and property, plant and
equipment. Free cash flow of the Sectors, SEI, Siemens IT Solutions and
Services and Other Operations primarily exclude income tax, financing
interest and certain pension related payments and proceeds. Free cash flow of
SFS, a financial services business, and of SRE includes related financing
interest payments and proceeds; income tax payments and proceeds of SFS and
SRE are excluded. |
|
(4) |
|
Amortization, depreciation and impairments contains amortization and
impairments of intangible assets other than goodwill and depreciation and
impairments of property, plant and equipment. Siemens Goodwill impairment
and impairment of non-current available-for-sale financial assets and
investments accounted for under the equity method amount to 95 and 98 for
the nine months ended June 30, 2008 and 2007, respectively. |
Due to rounding, numbers presented may not add up precisely to totals provided.
33
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
NOTES
1. Basis of presentation
The accompanying Interim Consolidated Financial Statements present the operations of Siemens
AG and its subsidiaries, (the Company or Siemens). The Interim Consolidated Financial Statements
have been prepared in accordance with International Financial Reporting Standards (IFRS) and its
interpretations issued by the International Accounting Standards Board (IASB), as adopted by the
European Union (EU). The Interim Consolidated Financial Statements also comply with IFRS as issued
by the IASB.
Siemens prepares and reports its Interim Consolidated Financial Statements in euros ().
Siemens is a German based multinational corporation with a balanced business portfolio of
activities predominantly in the fields of electronics and electrical engineering.
Interim financial statementsThe accompanying Consolidated Balance Sheets as of June 30,
2008, the Consolidated Statements of Income and Income and Expense Recognized in Equity for the
three months and nine months ended June 30, 2008 and 2007, the Consolidated Statements of Cash Flow
for the nine months ended June 30, 2008 and 2007 and the Notes to Consolidated Financial Statements
are unaudited and have been prepared for interim financial information. These interim financial
statements are prepared in compliance with International Accounting Standard (IAS) 34, Interim
financial reporting, and shall be read in connection with Siemens IFRS Consolidated Financial
Statements for fiscal 2007. The interim financial statements apply the same accounting principles
and practices as those used in the annual financial statements of fiscal 2007. In the opinion of
management, these unaudited Interim Consolidated Financial Statements include all adjustments of a
normal and recurring nature necessary for a fair presentation of results for the interim periods.
Results for the three months and nine months ended June 30, 2008, are not necessarily indicative of
future results.
Financial statement presentationIn fiscal 2008, Siemens rearranged its organization and
streamlined its reporting processes. The previous component model reporting approach is no longer
presented. See also Note 15 for further information. Information disclosed in the Notes relates to
Siemens unless stated otherwise.
Basis of consolidationThe Interim Consolidated Financial Statements include the accounts of
Siemens AG and its subsidiaries which are directly or indirectly controlled. Control is generally
conveyed by ownership of the majority of voting rights. Additionally, the Company consolidates
special purpose entities (SPEs) when, based on the evaluation of the substance of the relationship
with Siemens, the Company concludes that it controls the SPE. Associated companiescompanies in
which Siemens has the ability to exercise significant influence over operating and financial
policies (generally through direct or indirect ownership of 20% to 50% of the voting rights)are
recorded in the Consolidated Financial Statements using the equity method of accounting. Companies
in which Siemens has joint control are also accounted for under the equity method.
Use of estimatesThe preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent amounts at the date of the financial statements as well as reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those
estimates.
Income taxesIn interim periods, tax expense is based on the current estimated annual
effective tax rate.
ReclassificationThe presentation of certain prior-year information has been reclassified to
conform to the current year presentation.
Recent Accounting PronouncementsIn January 2008, the IASB published the amended standards
IFRS 3, Business Combinations (IFRS 3(2008)) and IAS 27, Consolidated and Separate Financial
Statements (IAS 27 (2008)). Both standards are not yet endorsed by the EU.
IFRS 3 (2008) reconsiders the application of acquisition accounting for business combinations.
Major changes relate to the measurement of non-controlling interests, the accounting for business
combinations achieved in stages as well as the treatment of contingent consideration and
acquisition-related costs. Based on the new regulation, non-controlling interests may be measured
at their fair value (full-goodwill-methodology) or at the proportional fair value of assets
acquired and liabilities assumed. In business combinations achieved in stages, any previously held
equity interest in the acquiree is remeasured to its acquisition date fair value. Any changes to
contingent consideration classified as a liability at the acquisition date are recognized in profit
and loss. Acquisition-related costs are expensed in the period incurred.
34
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
Major changes in relation to IAS 27 (2008) relate to the accounting for transactions which do
not result in a change of control as well as to those leading to a loss of control. If there is no
loss of control, transactions with non-controlling interests are accounted for as equity
transactions not affecting profit and loss. At the date control is lost, any retained equity
interests are remeasured to fair value. Based on the amended standard, non-controlling interests
may show a deficit balance since both profits and losses are allocated to the shareholders based on
their equity interests.
The amended standards are effective for business combinations in annual periods beginning on
or after July 1, 2009. The Company is currently evaluating the potential effects of IFRS 3(2008)
and IAS 27(2008) and will determine an adoption date.
2. Acquisitions, dispositions and discontinued operations
At the beginning of November 2007, Siemens completed the acquisition of Dade Behring Holdings, Inc.
(Dade Behring), USA, a leading manufacturer and distributor of diagnostic products and services to
clinical laboratories. Dade Behring was consolidated as of November 2007 and integrated
into Sector Healthcares Diagnostics division. The aggregate consideration, including the
assumption of debt, amounts to approximately 4.9 billion (including 69 cash acquired). The
company has not yet finalized the purchase price allocation. Based on the preliminary purchase
price allocation, approximately 1,171 was allocated to intangible assets subject to amortization
and approximately 3,332 was recorded as goodwill.
|
b) |
|
Discontinued operations |
|
ba) |
|
Siemens VDO Automotive (SV) |
At the beginning of December 2007, Siemens sold its SV activities to Continental AG, Hanover,
Germany for a sales price of approximately 11.4 billion. The transaction resulted in a preliminary
gain, net of related costs of 5,522, which is included in discontinued operations. The historical
results of SV are reported as discontinued operations in the Consolidated Statements of Income for
all periods presented.
The net results of SV presented in the Consolidated Statements of Income consist of the
following components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Revenue |
|
|
|
|
|
|
2,731 |
|
|
|
1,842 |
|
|
|
7,836 |
|
Costs and expenses |
|
|
|
|
|
|
(2,581 |
) |
|
|
(1,968 |
) |
|
|
(7,407 |
) |
Gain (loss) on disposal |
|
|
(1 |
) |
|
|
|
|
|
|
5,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
discontinued
operations before
income taxes |
|
|
(1 |
) |
|
|
150 |
|
|
|
5,396 |
|
|
|
429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
12 |
|
|
|
(42 |
) |
|
|
47 |
|
|
|
(118 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
discontinued
operations, net of
income taxes |
|
|
11 |
|
|
|
108 |
|
|
|
5,443 |
|
|
|
311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a result of taxable reorganizations in fiscal 2007, prior to the completion of the sale, no
disposal gain related income taxes arose on the disposal of SV in December 2007.
The historical results of the former operating segment Com, with the exception of certain
business activities which are now part of Other Operations (see Note 15 for further information),
are reported as discontinued operations in the Companys Consolidated Statements of Income for all
periods presented. The Com activities previously included the Mobile Devices (MD) business, which
was sold in fiscal 2005, and the
carrier-related operations which were contributed to Nokia Siemens Networks B.V., the
Netherlands (NSN) in April 2007. The Company has been actively pursuing its plan to dispose of the
enterprise networks business, which was also previously included in Com. At the end of July 2008,
Siemens announced the sale of a 51% stake in the enterprise networks business (see Note 16
subsequent events for additional information). The Company expects to realize a substantial loss upon the transaction.
35
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
The assets and liabilities of the above transactions were classified on the balance sheet as
held for disposal and measured at the lower of their carrying amount and fair value less costs to
sell. As of June 30, 2008 and as of September 30, 2007, the assets and liabilities classified as
held for disposal include the assets and liabilities of the enterprise networks business and also
certain amounts relating to the carrier-related operations.
The carrying amounts of the major classes of assets and liabilities classified as held for
disposal and relating to the above transactions were as follows:
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
September 30, |
|
|
|
2008 |
|
|
2007 |
|
Cash and cash equivalents* |
|
|
224 |
|
|
|
750 |
|
Trade and other receivables |
|
|
512 |
|
|
|
572 |
|
Inventories |
|
|
272 |
|
|
|
246 |
|
Other financial assets |
|
|
265 |
|
|
|
265 |
|
Other assets |
|
|
299 |
|
|
|
287 |
|
|
|
|
|
|
|
|
Assets classified as held for disposal |
|
|
1,572 |
|
|
|
2,120 |
|
|
|
|
|
|
|
|
Trade payables |
|
|
326 |
|
|
|
388 |
|
Current provisions |
|
|
60 |
|
|
|
67 |
|
Pension plans and similar commitments |
|
|
205 |
|
|
|
148 |
|
Payroll and social security taxes |
|
|
143 |
|
|
|
101 |
|
Other employee related costs |
|
|
195 |
|
|
|
164 |
|
Other liabilities |
|
|
401 |
|
|
|
530 |
|
|
|
|
|
|
|
|
Liabilities associated with assets classified as held for disposal |
|
|
1,330 |
|
|
|
1,398 |
|
|
|
|
|
|
|
|
|
|
|
* |
|
As of September 30, 2007, this caption also includes a portion still related to the carrier
operations. |
The consolidated balance sheet as of June 30, 2008, includes 587 of assets and 398 of
liabilities classified as held for disposal relating to minor transactions not presented as
discontinued operations.
The net results of Com presented in the Consolidated Statements of Income as discontinued
operations consist of the following components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Revenue |
|
|
758 |
|
|
|
789 |
|
|
|
2,294 |
|
|
|
6,704 |
|
Costs and expenses |
|
|
(847 |
) |
|
|
(928 |
) |
|
|
(2,563 |
) |
|
|
(6,791 |
) |
Loss on measurement to fair value less cost to sell |
|
|
(17 |
) |
|
|
(355 |
) |
|
|
(52 |
) |
|
|
(503 |
) |
Gain related to the contribution of the
carrier-related operations |
|
|
15 |
|
|
|
1,702 |
|
|
|
18 |
|
|
|
1,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations before
income taxes |
|
|
(91 |
) |
|
|
1,208 |
|
|
|
(303 |
) |
|
|
1,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
24 |
|
|
|
141 |
|
|
|
48 |
|
|
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of
income taxes |
|
|
(67 |
) |
|
|
1,349 |
|
|
|
(255 |
) |
|
|
1,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in income (loss) from discontinued operations, net of income taxes are also legal and
regulatory expenses related to Com (see Note 12 for additional information).
3. Other operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Gains on disposals of businesses |
|
|
158 |
|
|
|
33 |
|
|
|
245 |
|
|
|
167 |
|
Gains on sales of property,
plant and equipment and
intangibles |
|
|
84 |
|
|
|
65 |
|
|
|
242 |
|
|
|
146 |
|
Other |
|
|
17 |
|
|
|
46 |
|
|
|
149 |
|
|
|
149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
259 |
|
|
|
144 |
|
|
|
636 |
|
|
|
462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
At the end of May 2008, the Company sold its Wireless Modules Business, which was part of
Industry. The transaction resulted in a pre-tax gain of 113, net of related costs, which is
presented in Gains on disposals of businesses.
Gains on disposals of businesses for the nine months ended June 30, 2007, includes a gain of
76 on the sale of Siemens Dispolok GmbH Germany, which was part of Industry.
4. Other operating expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Impairment of goodwill |
|
|
|
|
|
|
(8 |
) |
|
|
(70 |
) |
|
|
(60 |
) |
Losses on sales of property,
plant and equipment and
intangibles |
|
|
(5 |
) |
|
|
(15 |
) |
|
|
(24 |
) |
|
|
(55 |
) |
Losses on disposals of businesses |
|
|
(12 |
) |
|
|
(3 |
) |
|
|
(20 |
) |
|
|
(13 |
) |
Other |
|
|
(127 |
) |
|
|
(181 |
) |
|
|
(493 |
) |
|
|
(738 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(144 |
) |
|
|
(207 |
) |
|
|
(607 |
) |
|
|
(866 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill of (70) in the nine months ended June 30, 2008 relates to the
buildings and infrastructure activities of VA Technologie AG acquired in fiscal 2005, which was
presented in Other Operations (see also Note 6). Impairment of goodwill of (52) in the nine months
ended June 30, 2007 is attributable to a regional payphone unit presented in Other Operations.
Other includes fees for outside advisors engaged in connection with investigations into
alleged violations of anti-corruption laws and related matters as well as remediation activities
(see Notes 12 and 15 for additional information) of (106) and (347) for the three and nine months
ended June 30, 2008. Other for the nine months ended June 30, 2007 of (423) is attributable to a
fine imposed by the European Commission in connection with an antitrust investigation involving
suppliers of high-voltage gas-isolated switching systems in the power transmission and distribution
industry between 1988 and 2004. The fine was not deductible for income tax purposes. Also included
in the nine months ended June 30, 2007 are (81) primarily to fund job placement companies for
former Siemens employees affected by the bankruptcy of BenQ Mobile GmbH & Co. OHG.
5. Financial income (expense), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Interest income (expense), net |
|
|
34 |
|
|
|
(47 |
) |
|
|
37 |
|
|
|
(92 |
) |
Income from pension plans and similar commitments, net |
|
|
37 |
|
|
|
50 |
|
|
|
108 |
|
|
|
150 |
|
Income from available-for-sale financial assets, net |
|
|
24 |
|
|
|
45 |
|
|
|
77 |
|
|
|
98 |
|
Other financial expense, net |
|
|
(1 |
) |
|
|
(80 |
) |
|
|
(103 |
) |
|
|
(147 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
94 |
|
|
|
(32 |
) |
|
|
119 |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total amounts of interest income and expense were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Interest income |
|
|
207 |
|
|
|
189 |
|
|
|
636 |
|
|
|
580 |
|
Interest expense |
|
|
(173 |
) |
|
|
(236 |
) |
|
|
(599 |
) |
|
|
(672 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense), net |
|
|
34 |
|
|
|
(47 |
) |
|
|
37 |
|
|
|
(92 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereof: Interest income (expense) of Operations, net |
|
|
11 |
|
|
|
(4 |
) |
|
|
36 |
|
|
|
(41 |
) |
Thereof: Other interest income (expense), net |
|
|
23 |
|
|
|
(43 |
) |
|
|
1 |
|
|
|
(51 |
) |
Interest income (expense) of Operations, net includes interest income and expense primarily
related to receivables from customers and payables to suppliers, interest on advances from
customers and advanced financing of customer contracts. Other interest income (expense), net
includes all other interest amounts primarily consisting of interest relating to corporate debt and
related hedging activities, as well as interest income on corporate assets.
37
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
The components of Income from pension plans and similar commitments, net were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Expected return on plan assets |
|
|
372 |
|
|
|
361 |
|
|
|
1,118 |
|
|
|
1,091 |
|
Interest cost |
|
|
(335 |
) |
|
|
(311 |
) |
|
|
(1,010 |
) |
|
|
(941 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from pension plans and similar commitments, net |
|
|
37 |
|
|
|
50 |
|
|
|
108 |
|
|
|
150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost for pension plans and similar commitments are allocated among functional costs
(Cost of goods sold and services rendered, Research and development expenses, Marketing, selling
and general administrative expenses).
The components of Income from available-for-sale financial assets, net were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Dividends received |
|
|
17 |
|
|
|
25 |
|
|
|
60 |
|
|
|
95 |
|
Impairment |
|
|
(8 |
) |
|
|
(24 |
) |
|
|
(24 |
) |
|
|
(47 |
) |
Gains on sales, net |
|
|
17 |
|
|
|
12 |
|
|
|
34 |
|
|
|
56 |
|
Other |
|
|
(2 |
) |
|
|
32 |
|
|
|
7 |
|
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from available-for-sale financial assets, net |
|
|
24 |
|
|
|
45 |
|
|
|
77 |
|
|
|
98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6. Goodwill
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
September 30, |
|
|
|
2008 |
|
|
2007 |
|
Sectors |
|
|
|
|
|
|
|
|
Industry |
|
|
4,660 |
|
|
|
4,739 |
|
Energy |
|
|
2,170 |
|
|
|
2,210 |
|
Healthcare |
|
|
7,912 |
|
|
|
5,197 |
|
Cross-Sector Businesses |
|
|
|
|
|
|
|
|
Siemens IT Solutions and Services |
|
|
123 |
|
|
|
129 |
|
Siemens Financial Services (SFS) |
|
|
111 |
|
|
|
126 |
|
Other Operations |
|
|
14 |
|
|
|
100 |
|
|
|
|
|
|
|
|
Siemens |
|
|
14,990 |
|
|
|
12,501 |
|
|
|
|
|
|
|
|
Commencing with the third quarter of fiscal 2008, the Company adjusted its reporting format to
its rearranged organization. The previous twelve segments were consolidated and newly structured
into six remaining reportable segments (for further information see Note 15). New cash generating
units have been identified. The goodwill impairment test is primarily performed at the division
level. Goodwill has been allocated based on expected synergies derived from the business
combination in which the goodwill arose.
The net increase in goodwill of 2,489 during the nine months ended June 30, 2008, is
attributable to 3,623 acquisitions and purchase accounting adjustments, offset by (1,033) foreign
currency adjustments primarily for the U.S.$; (70) relate to impairment predominantly within Other
Operations (see also Note 4) and (31) are attributable to dispositions. Acquisitions and purchase
accounting adjustments relate primarily to Healthcares acquisition of Dade Behring (see Note 2 for
further information).
38
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
7. Other intangible assets
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
September 30, |
|
|
|
2008 |
|
|
2007 |
|
Software and other internally generated intangible assets |
|
|
2,439 |
|
|
|
2,362 |
|
Less: accumulated amortization |
|
|
(1,524 |
) |
|
|
(1,468 |
) |
|
|
|
|
|
|
|
Software and other internally generated intangible assets, net |
|
|
915 |
|
|
|
894 |
|
|
|
|
|
|
|
|
Patents, licenses and similar rights |
|
|
6,212 |
|
|
|
5,406 |
|
Less: accumulated amortization |
|
|
(1,955 |
) |
|
|
(1,681 |
) |
|
|
|
|
|
|
|
Patents, licenses and similar rights, net |
|
|
4,257 |
|
|
|
3,725 |
|
|
|
|
|
|
|
|
Other intangible assets |
|
|
5,172 |
|
|
|
4,619 |
|
|
|
|
|
|
|
|
The increase in Other intangible assets during the nine months ended June 30, 2008, is
primarily due to the acquisition of Dade Behring (see Note 2 for further information).
Amortization expense reported in Income from continuing operations before income taxes
amounted to 228 and 181, respectively, for the three months ended June 30, 2008 and 2007, and
639 and 492 for the nine months ended June 30, 2008 and 2007, respectively.
8. Debt
Credit facilities
In June 2008, the Company raised an assignable loan. The loans, totaling 1.1 billion are for
general corporate purposes and were issued in four tranches: 370 floating rate notes
(EURIBOR + 0.55%) due June 12, 2013;
113.5 bearing interest of 5.283% notes due June 12, 2013; 283.5
floating rate notes (EURIBOR + 0.70%) due June 12, 2015 and 333 bearing interest of 5.435% notes due June 12,
2015.
Notes and bonds
The Company has agreements with financial institutions under which it may issue up to 5
billion in medium-term notes. In the three months ended June 30, 2008, Siemens updated the program
and issued 3.4 billion fixed-interest notes in three tranches comprising 1.2 billion 5.250% note
due December 12, 2011;
1 billion
5.375% note due June 11, 2014; and
1.2 billion
5.625% note due
June 11, 2018 in addition to two notes totaling U.S.$1 billion as of September 30, 2007 (thereof
U.S.$500 million floating rate note due March 2012, bearing interest of 0.15% above LIBOR and U.S.$500 million note bearing interest of 5.625% due March 2016).
In May 2008, the Company issued 500 floating rate extendible notes initially maturing
in June, 2009. The maturity date can be extended twice by the note-holder to June 2010 and June
2011. The notes bear 0.23% interest above EURIBOR (0.25% and 0.27% above EURIBOR, respectively,
subject to the extension option).
For debt issued in the nine months ended June 30, 2008, the Company added fair value hedges of
fixed-rate debt obligations to the 113.5 at 5.283% credit facility, the 333 at 5.435%
credit facility and to each of the three tranches of the 3.4 billion medium-term note. For further
information on fair value hedges of fixed-rate debt obligations see Note 31 of the Companys
Consolidated Financial Statements as of September 30, 2007.
39
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
9. Pension plans and similar commitments
Principal pension benefits: Components of net periodic benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Three months ended |
|
|
|
June 30, 2008 |
|
|
June 30, 2007 |
|
|
|
Total |
|
|
Domestic |
|
|
Foreign |
|
|
Total |
|
|
Domestic |
|
|
Foreign |
|
Service cost |
|
|
116 |
|
|
|
71 |
|
|
|
45 |
|
|
|
166 |
|
|
|
85 |
|
|
|
81 |
|
Interest cost |
|
|
308 |
|
|
|
191 |
|
|
|
117 |
|
|
|
303 |
|
|
|
177 |
|
|
|
126 |
|
Expected return on plan assets |
|
|
(364 |
) |
|
|
(232 |
) |
|
|
(132 |
) |
|
|
(372 |
) |
|
|
(232 |
) |
|
|
(140 |
) |
Amortization of past service cost (benefit) |
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
(2 |
) |
|
|
|
|
|
|
(2 |
) |
Net periodic benefit cost |
|
|
61 |
|
|
|
30 |
|
|
|
31 |
|
|
|
95 |
|
|
|
30 |
|
|
|
65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Germany |
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
30 |
|
|
|
|
|
|
|
|
|
U.S. |
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
35 |
|
|
|
|
|
|
|
|
|
UK |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
27 |
|
|
|
|
|
|
|
|
|
Other |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
|
Nine months ended |
|
|
|
June 30, 2008 |
|
|
June 30, 2007 |
|
|
|
Total |
|
|
Domestic |
|
|
Foreign |
|
|
Total |
|
|
Domestic |
|
|
Foreign |
|
Service cost |
|
|
379 |
|
|
|
229 |
|
|
|
150 |
|
|
|
522 |
|
|
|
272 |
|
|
|
250 |
|
Interest cost |
|
|
938 |
|
|
|
574 |
|
|
|
364 |
|
|
|
927 |
|
|
|
544 |
|
|
|
383 |
|
Expected return on plan assets |
|
|
(1,106 |
) |
|
|
(697 |
) |
|
|
(409 |
) |
|
|
(1,138 |
) |
|
|
(712 |
) |
|
|
(426 |
) |
Amortization of past service
cost (benefit) |
|
|
(1 |
) |
|
|
|
|
|
|
(1 |
) |
|
|
(4 |
) |
|
|
|
|
|
|
(4 |
) |
Loss (gain) due to
settlements and curtailments |
|
|
(35 |
) |
|
|
(21 |
) |
|
|
(14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net periodic benefit cost |
|
|
175 |
|
|
|
85 |
|
|
|
90 |
|
|
|
307 |
|
|
|
104 |
|
|
|
203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Germany |
|
|
85 |
|
|
|
|
|
|
|
|
|
|
|
104 |
|
|
|
|
|
|
|
|
|
U.S. |
|
|
78 |
|
|
|
|
|
|
|
|
|
|
|
105 |
|
|
|
|
|
|
|
|
|
UK |
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
80 |
|
|
|
|
|
|
|
|
|
Other |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
18 |
|
|
|
|
|
|
|
|
|
Net periodic benefit cost in the tables above includes amounts related to discontinued
operations. During the nine months ended June 30, 2008 and 2007, net periodic benefit cost related
to discontinued operations were (4) and 88, respectively. Net periodic benefit cost related to
discontinued operations during the three months ended June 30, 2008 and 2007 amounted to 6 and
24, respectively. The amount for the nine months ended June 30, 2008, includes (43) settlement
gain as a result from the disposal of the SV pension liabilities upon closing of the transaction in
December 2007 (see Note 2 for further information) and 39 other net periodic benefit cost of SV
and Siemens enterprise networks business.
10. Shareholders equity
Treasury Stock
At the Annual Shareholders Meeting on January 24, 2008, the Companys shareholders authorized
the Company to repurchase up to 10% of the 2,743 common stock existing on the date of the Annual
Shareholders Meeting until July 23, 2009.
In the nine months ended June 30, 2008, the Company launched the first two tranches of the
share buyback program that was announced in November 2007. The Company expects to conduct share
repurchases with a total
volume of up to 10 billion by 2010 for the purpose of cancellation and reduction of capital
stock and, to a lesser extent, to fulfill obligations arising out of stock based compensation
programs.
In the nine months ended June 30, 2008, Siemens repurchased a total of 40,787,601 shares at an
average price of 80.04 per share. During the nine months ended June 30, 2008, a total of 3,492,902
shares of Treasury Stock were sold. Thereof, 2,766,002 shares were issued to share-based
compensation plan participants to accommodate the exercise of stock options and 720,292 shares were
issued to employees under the compensatory employee share purchase program (see Note 13 for
additional information).
40
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
Miscellaneous
According to the resolution of the Annual Shareholders Meeting on January 24, 2008, Siemens
AG management distributed 1,462 (1.60 per share) of the fiscal 2007 earnings of Siemens AG as an
ordinary dividend to its shareholders. The dividend was paid on January 25, 2008.
11. Commitments and contingencies
Guarantees and other commitments
The following table presents the undiscounted amount of maximum potential future payments for
each major group of guarantees:
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
September 30, |
|
|
|
2008 |
|
|
2007 |
|
Guarantees: |
|
|
|
|
|
|
|
|
Credit guarantees |
|
|
435 |
|
|
|
386 |
|
Guarantees of third-party performance |
|
|
1,578 |
|
|
|
1,995 |
|
Herkules obligations* |
|
|
3,890 |
|
|
|
4,200 |
|
Other guarantees |
|
|
3,069 |
|
|
|
1,882 |
|
|
|
|
|
|
|
|
|
|
|
8,972 |
|
|
|
8,463 |
|
|
|
|
|
|
|
|
|
|
|
* |
|
For additional information on the Herkules obligations, see the Companys Consolidated Financial
Statements as of September 30, 2007. |
The increase in Other guarantees as of June 30, 2008, is primarily due to indemnification
provisions in conjunction with the sale of SV (see Note 2 for additional information).
12. Legal proceedings
As previously reported, public prosecutors and other government authorities in jurisdictions
around the world are conducting investigations of Siemens and certain of our current and former
employees regarding allegations of public corruption, including criminal breaches of fiduciary duty
including embezzlement, as well as bribery, money laundering and tax evasion, among others. These
investigations involve allegations of corruption at a number of Siemens business units.
For more information regarding these and other legal proceedings in which Siemens is involved,
as well as the potential risks associated with such proceedings and their potential financial
impact on the Company, please refer to Siemens Annual Report for the fiscal year ended September
30, 2007 (Annual Report) and its annual report on Form 20-F for the fiscal year ended September 30,
2007 (Form 20-F), and, in particular, to the information contained in Item 3: Key Information
Risk Factors, Item 4: Information on the Company Legal Proceedings, Item 5: Operating
Financial Review and Prospects, and Item 15: Controls and Procedures of the Form 20-F.
Developments regarding investigations and legal proceedings that have occurred since the
publication of Siemens Annual Report and Form 20-F include:
|
|
|
The investigation of the Munich public prosecutor extends beyond the former
Communications group. To date, the Munich public prosecutor has announced that groups
under investigation include Siemens former Power Transmission and Distribution (PTD)
group, in which a former member of the Managing Board is a suspect, the former Power
Generation (PG) group, the former Medical Solutions (Med) group, the former
Transportation Systems (TS) group and Siemens IT Solutions and Services group. The
investigation of the Munich public prosecutor remains ongoing. |
|
|
|
In May 2008, the Munich prosecutor announced an investigation against the former
Chairman of the Supervisory Board, the former CEO and other former members of the Supervisory Board
and of the Managing Board of Siemens AG. The investigation is based on Section 130 of
the German Law on Administrative Offences regarding violations of the duty to take
appropriate supervisory measures required to prevent breaches of criminal and
administrative law. |
|
|
|
On July 29, 2008, the Supervisory Board of Siemens AG resolved to claim damages
from former members of the former Central Executive Committee of the Managing Board
of Siemens AG. The claims are based on breaches of their organizational and
supervisory duties in view of the |
41
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
|
|
|
accusations of illegal business practices and extensive bribery that occurred in the
course of international business transactions and the resulting financial burdens to the
company. On the basis of information available to date, claims are being asserted against
ten former executives, including two former Chief Executive Officers of Siemens and a
former Chief Financial Officer. Claims for damages are also being brought against one of
the aforementioned ten former executives and one additional former member of the Managing
Board in connection with payments made to the former head of the independent employee
association AUB (Arbeitsgemeinschaft Unabhängiger Betriebsangehöriger). The former
executives will be invited to respond to the claims before legal action for damages is
taken. |
|
|
|
|
Debevoise & Plimpton LLP (Debevoise), an independent external law firm engaged by
the Company to conduct an independent and comprehensive investigation to determine
whether anti-corruption regulations have been violated and to conduct an independent
and comprehensive assessment of the Companys compliance and control systems, is
investigating leads generated by the Companys amnesty program, as well as other
sources. |
|
|
|
|
In the course of its investigation, Debevoise identifies and reports to the
Company evidence of payments to business consultants, sales-related intermediaries
and cash payments. The Company analyzes whether such payments were considered in its
analysis of income tax non-deductible payments conducted in fiscal 2007. |
|
|
|
|
As previously reported, the Company also investigates evidence of additional bank
accounts at various locations. The Company is currently investigating the amount of
the funds, as well as whether such funds can be recorded on the Companys balance
sheet. |
|
|
|
|
In November 2007, authorities in Nigeria conducted searches of the premises of
Siemens Ltd. Nigeria in connection with an investigation into alleged illegal payments
to Nigerian public officials between 2002 and 2005. |
|
|
|
|
In December 2007, the Norwegian public prosecutors office conducted a search of
Siemens AS Norways offices as well as several private homes in connection with
payments made by Siemens for golf trips in 2003 and 2004, which were attended by
members of the Norwegian Department of Defense. In light of this and the previously
reported investigation of allegations of bribery and overcharging of the Department of
Defense related to the awarding of a contract for the delivery of communication
equipment, the Department of Defense has announced that it will not conduct further
business with Siemens at this time. |
|
|
|
|
The public prosecutor in Milan, Italy is investigating allegations concerning
whether two employees of Siemens S.p.A. made illegal payments to employees of the
state-owned gas and power group ENI. In November 2007, the public prosecutor filed
charges against the two employees, Siemens S.p.A. and one of its subsidiaries, as well
as against other individuals and companies not affiliated with Siemens. The
prosecutor is also investigating suspicions of tax evasion by the former CFO of
Siemens S.p.A. in connection with the non-deductibility for tax purposes of certain
payments. |
|
|
|
|
Authorities in Russia are conducting an investigation into alleged embezzlement of
public funds in connection with the award of contracts to Siemens for the delivery of
medical equipment to public authorities in Ekaterinburg in the years 2003 to 2005. An
employee of Siemens Russia was previously arrested in connection with this
investigation. |
|
|
|
|
In January 2008, the Vienna, Austria public prosecutor announced an investigation
into payments relating to Siemens AG Austria and its subsidiary VAI for which valid
consideration could not be identified. |
|
|
|
|
In January 2008, the Malaysian Anti-Corruption Agency executed a search warrant at
the premises of Siemens Malaysia and requested interviews with several employees of
Siemens Malaysia in connection with an investigation into a project involving the PTD
group. |
|
|
|
|
As previously disclosed, Siemens was contacted by representatives of regional
development banks, including the Inter-American Development Bank, the Asian
Development Bank, the African Development Bank, the European Bank for Reconstruction
and Development and the European Investment Bank, regarding anti-corruption inquiries
and other matters of relevance to them. |
42
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
|
|
|
As previously reported, in connection with the investigation relating to an
agreement entered into by Siemens with an entity controlled by the former head of the
independent employee association AUB (Arbeitsgemeinschaft Unabhängiger
Betriebsangehöriger), in April 2007, a former member of the Managing Board of Siemens
AG was arrested and subsequently posted bail in the amount of 5 and was released from
custody. In connection with the posting of bail, a bank issued a bond (Bankbürgschaft)
in the amount of 5, 4.5 of which was guaranteed by the Company pursuant to the
provisions of German law. The warrant associated with the arrest of the former member
of the Managing Board has since been revoked and the bank bond, as well as the
Companys guarantee thereof, has been released. In July 2008, the Nürnberg-Fürth
prosecutor brought charges against this former member of the Managing Board on several
counts of criminal breach of fiduciary duty and tax evasion. According to July 2008
press reports, the Nürnberg-Fürth prosecutor has initiated an investigation against
another former member of the Managing Board on suspicion of abetting breach of
fiduciary duty. |
|
|
|
|
In December 2007, a suit and motion for approval of a class action was filed in
Israel to commence a class action based on the fines imposed by the European
Commission for alleged anti-trust violations in connection with high-voltage
gas-insulated switchgear. Thirteen companies have been named as defendants in the suit
and motion, among them Siemens AG Germany, Siemens AG Austria and Siemens Israel Ltd.
The class action alleges damages to electricity consumers in Israel in the amount of
approximately 575 related to higher electricity prices claimed to have been paid
because of the alleged anti-trust violations. The court has not yet ruled on the
motion for approval of the class action. |
|
|
|
|
In January 2008, the Competition Authority of Slovakia imposed a fine of 3.3 on
Siemens and VA Tech in connection with an investigation into possible anti-trust
violations in the market for high-voltage gas-insulated switchgear. The Company has
filed an appeal against this decision. |
|
|
|
|
As previously reported, in December 2006, the Japanese Fair Trade Commission (FTC)
had searched the offices of more than ten producers and dealers of healthcare
equipment, including Siemens Asahi Medical Technologies Ltd., in connection with an
investigation into possible anti-trust violations. In February 2008, the FTC
announced its findings. Siemens was found not guilty of participating in anti-trust
violations, and was therefore not fined or otherwise punished. |
|
|
|
|
As previously reported, the Polish Competition Authority conducted an investigation
against Siemens Sp. z.o.o. Poland regarding possible anti-trust violations in the market for
the maintainance of diagnostic medical equipment. In May 2008, the Authority issued a
final decision finding that Siemens Poland had not violated anti-trust regulations. |
|
|
|
|
In May 2008, Siemens received a decision issued by the Controller of the United
Nations upon the recommendation of the Vendor Review Committee of the United Nations
Secretariat Procurement Division (UNPD). According to the decision, which is based on
the Fifth and Final Report (IIC Report) of the Independent Inquiry Committee into the
United Nations Oil for Food Program, Siemens Medical Solutions is to be suspended for
a minimum period of six months, effective as of May 23, 2008, from the UNPD Vendor
Roster. Siemens appealed the decision. The review of the decision is pending. |
|
|
|
|
The Company has become aware of media reports that the Republic of Iraq filed in
June 2008 an action requesting unspecified damages against 93 named defendants with
the United States District Court for the Southern District of New York on the basis
of findings made in the IIC Report. Siemens S.A.S France, Siemens A.S. Turkey and
Osram Middle East FZE, Dubai are reported to be among the 93 named defendants. None
of the Siemens affiliates have been served to date. |
|
|
|
|
In June 2008, the court of first instance in Kalimantan Province, Indonesia, found
the head of the former Med group of Siemens PT Indonesia not guilty of allegations of
participation in bribery, fraud, and overcharging related to the awarding of a
contract for the delivery of medical equipment to a hospital in 2003. The decision
has been appealed by the prosecutor. |
43
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
|
|
|
In June 2008, a court of first instance in the Czech Republic reversed the decision
by the national competition authority regarding alleged anti-trust
violations in the
high-voltage gas-insulated switchgear market and ordered the authority to repay to
Siemens the 11.7 fine imposed by the authority. The authority has the right to appeal
the decision. |
|
|
|
|
In July 2008, the public prosecutor in Athens, Greece concluded his preliminary
investigation relating to allegations of active and passive bribery of public
officials, money laundering and aiding and abetting the foregoing, in connection with,
among others, a telecom contract relating to the 2004 Olympic Games awarded by the
Greek government to Siemens and purchases of telecom equipment by the Hellenic
Telecommunications Organization SA (OTE) in the late 1990s. The prosecutor named
several suspects, including a current and several former Siemens employees, and
transferred the case to an investigative Magistrates Court in Athens, which can issue
criminal charges against specific individuals. Separately, preliminary investigations
continue into allegations of bribery by Siemens of Greek national railways and of the
Greek Ministry of Defence and the Military. The Greek Ministry of Finance also
announced tax probes into the local operations of Siemens. |
|
|
|
|
In July 2008, the Central Anti-Corruption Office of Poland executed a search
warrant at the premises of Siemens Poland in connection with a corruption
investigation relating to the former Com group. |
|
|
|
|
As previously reported, the Company requested arbitration against the Republic of
Argentina before the International Center for Settlement of Investment Disputes
(ICSID) of the World Bank. The Company claimed that Argentina unlawfully terminated
the Companys contract for the development and operation of a system for the
production of identity cards, border control, collection of data and voters
registers and thereby violated the Bilateral Investment Protection Treaty between
Argentina and Germany (BIT). The Company sought damages for expropriation and violation of the BIT of approximately U.S.$500 million. Argentina disputed jurisdiction of the
ICSID arbitration tribunal and argued in favor of jurisdiction of the Argentine
administrative courts. The arbitration tribunal rendered a decision on August 4, 2004,
finding that it had jurisdiction over the Companys claims and that the Company was
entitled to present its claims. A hearing on the merits of the case took place before
the ICSID arbitration tribunal in Washington in October 2005. A unanimous decision on
the merits was rendered on February 6, 2007, awarding the Company compensation in the
amount of U.S.$217.8 million on account of the value of its investment and consequential damages,
plus compound interest thereon at a rate of 2.66% since May 18, 2001. The tribunal
also ruled that Argentina is obligated to indemnify the Company against any claims of
subcontractors in relation to the project (amounting to approximately U.S.$44 million) and,
furthermore, that Argentina would be obligated to pay the Company the full amount of
the contract performance bond (U.S.$20 million) in the event this bond was not returned within the
time period set by the tribunal (which period subsequently elapsed without delivery).
On June 4, 2007, Argentina filed with the ICSID an application for the annulment and
stay of enforcement of the award, alleging serious procedural irregularities. An ad
hoc committee has been appointed to consider Argentinas application. On June 6, 2008,
Argentina filed with the ICSID an application for revision and request for stay of
enforcement of the award alleging the discovery of new, previously unknown facts that
would have decisively affected the award. Argentina relies on information reported in
the media alleging bribery by the Company, which it argues makes the BIT inapplicable.
The application was registered by the ICSID on June 9, 2008 and forwarded to the
original members of the ICSID arbitration tribunal. The application for revision may
result in a stay with respect to Argentinas application for annulment pending before
the ad hoc committee. |
|
|
|
|
Pursuant to an agreement of June 6, 2005, the Company sold its mobile devices
business to Qisda Corp. (formerly named BenQ Corp.), a Taiwanese company. A dispute
arose in 2006 between the Company and Qisda concerning the calculation of the purchase
price. Beginning in September 2006, several subsidiaries in different countries used
by Qisda for purposes of the acquisition filed for insolvency protection and failed to
fulfill their obligations under various contracts transferred to them by the Company
under the agreement. On December 8, 2006, the Company initiated arbitration
proceedings against Qisda requesting a declaratory award that certain allegations made
by Qisda in relation to the purchase price calculation are unjustified. The Company
further requested an order that Qisda perform its obligations and/or the obligations
of its local subsidiaries assumed in connection with the acquisition or, in the
alternative, that Qisda indemnify the Company for any losses. The Companys request
for arbitration was filed with the |
44
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
|
|
|
International Chamber of Commerce in Paris. The seat of arbitration is Zurich, Switzerland.
In March 2007, Qisda raised a counterclaim alleging that the Company made
misrepresentations in connection with the sale of the mobile devices business and asserted
claims in connection with the purchase price. Qisda amended its counterclaim in March 2008
by (i) changing its request for declaratory relief with regard to the alleged
misrepresentations to a request for substantial damages, and (ii) raising further claims
for substantial damages and declaratory relief. The Company will request that the arbitral
tribunal dismiss the counterclaim. |
The Company remains subject to corruption-related investigations in the United States and
other jurisdictions around the world. As a result, additional criminal or civil sanctions could be
brought against the Company itself or against certain of its employees in connection with possible
violations of law, including the Foreign Corrupt Practices Act (FCPA). In addition, the scope of
pending investigations may be expanded and new investigations commenced in connection with
allegations of bribery and other illegal acts. The Companys operating activities, financial
results and reputation may also be negatively affected, particularly due to imposed penalties,
fines, disgorgements, compensatory damages, the formal or informal exclusion from public
procurement contracts or the loss of business licenses or permits. In addition to the amounts
previously reported, including the fine imposed by the Munich district court, no material charges
or provisions for any such penalties, fines, disgorgements or damages have been recorded or accrued
as management does not yet have enough information to estimate such amounts reliably. We expect
that we will need to record expenses and provisions in the future for penalties, fines or other
charges, which could be material, in connection with the investigations. On January 24, 2008, the Company announced, at the Annual Shareholders Meeting, that the
Securities and Exchange Commission and the Department of Justice had agreed to begin discussions
with the Company regarding a possible settlement of their investigations into possible violations
of U.S. law in connection with allegations of corruption. The Company anticipates that such
discussions will continue over many months. The Company will also have to bear the costs of
continuing investigations and related legal proceedings, as well as the costs of on-going
remediation efforts. Furthermore, changes affecting the Companys course of business or changes to
its compliance programs beyond those already taken may be required.
For certain legal proceedings information required under IAS 37 Provisions, Contingent
Liabilities and Contingent Assets is not disclosed, if the Company concludes that the disclosure
can be expected to prejudice seriously the outcome of the litigation.
In addition to the investigations and legal proceedings described in Siemens Annual Report as
well as in Form 20-F and as updated above, Siemens AG and its subsidiaries have been named as
defendants in various other legal actions and proceedings arising in connection with their
activities as a global diversified group. Some of these pending proceedings have been previously
disclosed. Some of the legal actions include claims for substantial compensatory or punitive
damages or claims for indeterminate amounts of damages. Siemens is from time to time also involved
in regulatory investigations beyond those described in its Annual Report as well as Form 20-F and
as updated above. Siemens is cooperating with the relevant authorities in several jurisdictions
and, where appropriate, conducts internal investigations regarding potential wrongdoing with the
assistance of in-house and external counsel. Given the number of legal actions and other
proceedings to which Siemens is subject, some may result in adverse decisions. Siemens contests
actions and proceedings when it considers it appropriate. In view of the inherent difficulty of
predicting the outcome of such matters, particularly in cases in which claimants seek substantial
or indeterminate damages, Siemens may not be able to predict what the eventual loss or range of
loss related to such matters will be. The final resolution of the matters discussed in this
paragraph could have a material effect on Siemens consolidated operating results for any reporting
period in which an adverse decision is rendered. However, Siemens does not currently expect its
consolidated financial position to be materially affected by the additional legal matters discussed
in this paragraph.
13. Share-based payment
Share-based payment plans at Siemens are predominantly designed as equity-settled plans and to
a certain extent as cash-settled plans. Total pre-tax expense for share-based payment recognized in
Net income in the three months ended June 30, 2008 and 2007 amounted to 16 and 95, respectively,
and 76 and 154 for the nine months ended June 30, 2008 and 2007, respectively. Related income tax
benefits amount to 5 and 36, respectively, for the three months ended June 30, 2008 and 2007, and
23 and 59, respectively, for the nine months ended June 30, 2008 and 2007.
For a description of the Siemens share-based payment plans, see the Companys Consolidated
Financial Statements as of September 30, 2007.
45
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
Stock Option Plans
Since the authority to distribute options under the 2001 Siemens Stock Option Plan expired on
December 13, 2006, no further options will be granted under this plan.
Details on option activity and weighted average exercise prices for the nine months ended June
30, 2008 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended June 30, 2008 |
|
|
|
|
|
|
|
|
Weighted Average |
|
|
|
|
|
|
|
|
|
|
Remaining |
|
Aggregate intrinsic |
|
|
|
|
|
|
Weighted Average |
|
Contractual Term |
|
value (in millions |
|
|
Options |
|
Exercise Price |
|
(years) |
|
of ) |
Outstanding, beginning of
the period
|
|
|
8,606,272 |
|
|
72.13 |
|
|
|
|
|
|
Options exercised
|
|
|
(2,769,602 |
) |
|
69.83 |
|
|
|
|
|
|
Options forfeited
|
|
|
(627,740 |
) |
|
70.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding, end of period
|
|
|
5,208,930 |
|
|
73.60
|
|
|
1.3 |
|
|
|
Exercisable, end of period
|
|
|
5,208,930 |
|
|
73.60
|
|
|
1.3 |
|
|
|
Stock awards
In the nine months ended June 30, 2008, the Company granted 737,621 stock awards to 4,357
employees and members of the Managing Board, of which 79,133 awards were granted to the Managing
Board. Details on stock award activity and weighted average grant-date fair value for the nine
months ended June 30, 2008 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average |
|
|
|
|
|
|
Grant-Date Fair |
|
|
Awards |
|
Value |
Nonvested, beginning of the period
|
|
|
3,270,910 |
|
|
60.58 |
Granted
|
|
|
737,621 |
|
|
97.94 |
Vested
|
|
|
(79,068 |
) |
|
79.03 |
Forfeited
|
|
|
(351,894 |
) |
|
62.64 |
|
|
|
|
|
|
|
Nonvested, end of period
|
|
|
3,577,569 |
|
|
67.67 |
|
|
|
|
|
|
|
Fair value was determined as the market price of Siemens shares less the present value of
expected dividends. Total fair value of stock awards granted in the nine months ended June 30, 2008
and 2007, amounted to 72 and 83, respectively.
As of June 30, 2008, unrecognized compensation costs related to stock awards amount to 104,
which is expected to be recognized over a weighted average vesting period of 2.1 years.
Employee share purchase program
Under an employee share purchase program with compensation character, employees may purchase a
limited number of shares in the Company at preferential prices once a year. Up to a stipulated date
in the first quarter of the fiscal year, employees may order the shares, which are usually issued
in the second quarter of the fiscal year. The employee share purchase program is measured at fair
value. In the nine months ended June 30, 2008 and 2007, the Company incurred compensation expense
before tax of 27 and 27, based on a preferential employee share price of 69.19 and 51.20,
respectively, and a grant-date fair value of 37.20 and 20.79, respectively, per share.
14. Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
June 30, |
|
|
June 30, |
|
(shares in thousands) |
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Income from continuing operations |
|
|
1,475 |
|
|
|
608 |
|
|
|
3,118 |
|
|
|
2,515 |
|
Less: Portion attributable to minority interest |
|
|
(44 |
) |
|
|
(35 |
) |
|
|
(111 |
) |
|
|
(120 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to
shareholders of Siemens AG |
|
|
1,431 |
|
|
|
573 |
|
|
|
3,007 |
|
|
|
2,395 |
|
Plus: Effect of assumed conversion, net of tax* |
|
|
|
|
|
|
16 |
|
|
|
|
|
|
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to
shareholders of Siemens AG plus effect of assumed
conversion |
|
|
1,431 |
|
|
|
589 |
|
|
|
3,007 |
|
|
|
2,439 |
|
Weighted average shares outstandingbasic |
|
|
888,154 |
|
|
|
898,635 |
|
|
|
902,856 |
|
|
|
894,624 |
|
Effect of dilutive convertible debt securities and
share-based payment |
|
|
2,100 |
|
|
|
39,307 |
|
|
|
3,221 |
|
|
|
45,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstandingdiluted |
|
|
890,254 |
|
|
|
937,942 |
|
|
|
906,077 |
|
|
|
939,790 |
|
Basic earnings per share (from continuing operations) |
|
|
1.61 |
|
|
|
0.64 |
|
|
|
3.33 |
|
|
|
2.68 |
|
Diluted earnings per share (from continuing operations) |
|
|
1.61 |
|
|
|
0.63 |
|
|
|
3.32 |
|
|
|
2.60 |
|
|
|
|
* |
|
For additional information on the convertible debt in fiscal 2007, see the Companys Consolidated
Financial Statements as of September 30, 2007. |
46
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
15. Segment information
In fiscal 2008, the Company rearranged its organization to have a more focused Company which
is faster in the market and closer to the customer. The previous twelve reportable segments
referred to as Groups were consolidated and newly structured into six remaining reportable segments
each having its own segment management reporting to the Board. In the new structure, the Company is
divided into Sectors being Industry, Energy and Healthcare, a segment for Strategic Equity
Investments (SEI) and two segments referred to as Cross-Sector Businesses, composed of Siemens IT
Solutions and Services and Siemens Financial Services (SFS). Industry is mainly composed of the
previous segments Automation and Drives (A&D), Industrial Solutions and Services (I&S), Siemens
Building Technologies (SBT), Osram and Transportation Systems (TS). Energy is primarily combining
the previous segments Power Generation (PG) and Power
Transmission and Distribution (PTD). Healthcare generally
comprises the previous Medical Solutions (Med) segment. However, in certain instances, some
businesses of the previous segments were transferred to and integrated in other segments to
correspond to the new structure. SEI, Siemens IT Solutions and Services and SFS, in general,
retained its previous structure. Siemens Real Estate (SRE) is no longer a segment.
Commencing with the second half of fiscal 2008, Siemens changed its financial reporting
structure to reflect the Companys new organization. Prior year information has been reclassified
to correspond to the new reporting format. Segment information is presented for continuing
operations. Accordingly, current and prior period segment information excludes discontinued
operations (for discontinued operations see Note 2 of this report as well as Note 4 of the
Companys Consolidated Financial Statements as of September 30, 2007). The Company removed its
previous component model presentation which used to divide Siemens consolidated financial
statements into Operations, Financing and Real Estate and Eliminations, reclassifications and
Corporate Treasury.
Description of reportable segments
Sectors
The three Sectors comprise manufacturing, industrial and commercial goods, solutions and
services in areas more or less related to Siemens origins in the electrical business field.
Industry
The Industry Sector offers sustainable solutions for efficient use of resources and energy,
integrated technologies for best-in-class productivity and flexibility, and holistic solutions for
infrastructure and mobility.
Energy
The Siemens Energy Sector primarily addresses energy providers, but also industrial companies
particularly in the oil and gas industry. Energy offers a complete spectrum of products, services
and solutions for the generation, transmission and distribution of power, and for the extraction,
conversion and transport of oil and gas.
Healthcare
The Healthcare Sector offers products and complete solutions, services and consulting related
to the healthcare industry and serves its customers as fully integrated diagnostics provider.
Healthcare maintains a comprehensive portfolio of medical solutions and is present in substantially
the complete value-added chain ranging from medical imaging and laboratory diagnostics to clinical
IT.
47
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
Strategic Equity Investments (SEI)
Strategic Equity Investments contains strategically important investments, accounted for under
the equity method. SEI, a reportable segment, established at the beginning of fiscal 2007, driven
by the formation of NSN, has its own management and comprises investments in NSN (see Note 4 of the
Companys Consolidated Financial Statements as of September 30, 2007 for further information), BSH
Bosch und Siemens Hausgeräte GmbH (BSH) and Fujitsu Siemens Computers (Holding) BV (FSC).
Cross Sector Businesses
Siemens IT Solutions and Services
Siemens IT Solutions and Services, established in April 2007, provides information and
communications services primarily to customers in the commercial/industrial sector, in the service
and healthcare industry as well as to the public sector. Siemens IT Solutions and Services builds
and operates both discrete and large-scale information and
communications systems.
Siemens Financial Services (SFS)
SFS offers a variety of financial products and services within the Siemens Group, to Siemens
customers and to third parties.
Reconciliation to consolidated financial statements
Reconciliation to consolidated financial statements contains businesses and items not directly
related to Siemens reportable segments:
Other Operations primarily refers to operating activities not associated with a Siemens
segment and certain net assets recently acquired as part of acquisitions for which the allocation
to the cash generating units and segments are not yet finalized. In the first half of fiscal
2008, Siemens determined a course of action for each of the activities within Other Operations and
began executing corresponding measures. Options under this transformation program include
integration into Siemens segments, divestment, joint venture or closure.
Siemens Real Estate (SRE), which no longer exists as a segment, owns and manages a substantial
part of Siemens real estate portfolio and offers a range of services encompassing real estate
development, real estate disposal and asset management, as well as lease and services management.
Corporate items and pensions includes corporate charges such as personnel costs for corporate
headquarters, corporate projects and non-operating investments or results of corporate-related
derivative activities. Pensions includes the Companys pension related income (expense) not
allocated to the segments, SRE or Other Operations.
Eliminations, Corporate Treasury and other reconciling items comprises consolidation of
transactions within the segments, certain reconciliation and reclassification items and the
activities of the Companys Corporate Treasury. It also includes interest income and expense, such
as, for example, interest not allocated to segments or Other Operations (referred to as financing
interest), interest related to Corporate Treasury activities or resulting consolidation and
reconciliation effects on interest.
Measurement Segments
While the Companys organization was rearranged in fiscal 2008, in general, Siemens retained
its previous performance measurements for the segments.
Accounting policies for Segment Information are generally the same as those used for Siemens,
which are described in Note 2 of the Companys Consolidated Financial Statements as of September
30, 2007. Corporate overhead is generally not allocated to segments. Intersegment transactions are
generally based on market prices.
Profit of the Sectors, SEI, and Siemens IT Solutions and Services:
Siemens Managing Board is responsible for assessing the performance of the segments. The
Companys
profitability measure for the Sectors, SEI, and Siemens IT Solutions and Services is earnings
before financing interest, certain pension costs, and income taxes (Profit) as determined by
Management as the chief operating decision maker. Profit excludes various categories of items which
are not allocated to the Sectors, SEI, and Siemens IT Solutions and Services since Management does
not regard such items as indicative of their performance. Profit represents a performance measure
focused on operational success excluding the effects of capital market financing issues. The major
categories of items excluded from Profit are presented below.
48
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
Financing interest, excluded from Profit, is any interest income or expense other than
interest income related to receivables from customers, from cash allocated to the Sectors, SEI, and
Siemens IT Solutions and Services and interest expense on payables to suppliers. Financing interest
is excluded from Profit because decision-making regarding financing is typically made at the
corporate level.
Similarly, decision-making regarding essential pension items is done centrally. As a
consequence, Profit primarily includes amounts related to service costs of pension plans only,
while all other regularly recurring pension related costs (including charges for the German pension
insurance association and plan administration costs) are included in the line item Corporate items
and pensions.
Furthermore, income taxes are excluded from Profit since income tax is subject to legal
structures which typically do not correspond to the structure of the segments.
The effect of certain litigation and compliance issues is excluded from Profit, if such items
are not indicative of the Sectors, SEI, and Siemens IT Solutions and Services performance, since
their related results of operations may be distorted by the amount and the irregular nature of such
events. This may also be the case for items that refer to more than one reportable segment, SRE
and/or Other Operations or have a corporate or central character.
Profit of the segment SFS:
Profit of the segment SFS is Income before income taxes. In contrast to performance
measurement principles applied to the Sectors, SEI, and Siemens IT Solutions and Services, interest
income and expense is an important source of revenue and expense of SFS.
Asset measurement principles:
Management determined Assets as a measure to assess capital intensity of the Sectors, SEI and
Siemens IT Solutions and Services (Net capital employed). Its definition corresponds to the Profit
measure. It is based on Total assets of the Balance Sheet, primarily excluding intragroup financing
receivables, intragroup investments and tax related assets, since the corresponding positions are
excluded from Profit. The remaining assets are reduced by non-interest-bearing liabilities other
than tax related liabilities (e.g. trade payables) and provisions to derive Assets. In contrast,
Assets of SFS is Total assets. A reconciliation of Assets disclosed in Segment Information to Total
assets in the Consolidated Balance Sheet is presented below.
New orders:
New orders are determined principally as estimated revenue of accepted purchase orders and
order value changes and adjustments, excluding letters of intent.
Free cash flow definition:
Segment Information discloses Free cash flow and Additions to property, plant and equipment
and intangible assets. Free cash flow of the Sectors, SEI, and Siemens IT Solutions and Services
constitutes net cash provided by (used in) operating activities less additions to intangible assets
and property, plant and equipment. It excludes Financing interest as well as income tax related and
certain other payments and proceeds, in accordance with the Companys Profit and Asset measurement
definition. Free cash flow of SFS, a financial services business, includes related financing
interest payments and proceeds; income tax payments and proceeds of SFS are excluded.
Amortization, depreciation and impairments:
Amortization, depreciation and impairments presented in Segment Information includes
depreciation and impairments of property, plant and equipment as well as amortization and
impairments of intangible assets other than goodwill and impairment of non-current
available-for-sale financial assets and investments accounted for using the equity method.
Measurement Other Operations and SRE
Other Operations follows the measurement principles of the Sectors, SEI, and Siemens IT
Solutions and Services. SRE applies the measurement principles of SFS.
49
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
Reconciliation to Siemens Consolidated Financial Statements
The following table reconciles total Assets of the Sectors, SEI and Cross-Sector Businesses to
Total assets of Siemens Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
June, 30 |
|
|
Sept. 30, |
|
|
|
2008 |
|
|
2007 |
|
Assets of Sectors |
|
|
27,543 |
|
|
|
23,437 |
|
Assets of SEI |
|
|
5,369 |
|
|
|
4,891 |
|
Assets of Cross-Sector Businesses |
|
|
10,227 |
|
|
|
9,165 |
|
|
|
|
|
|
|
|
Total Segment Assets |
|
|
43,139 |
|
|
|
37,493 |
|
|
|
|
|
|
|
|
Reconciliation: |
|
|
|
|
|
|
|
|
Assets Other Operations |
|
|
(904 |
) |
|
|
(704 |
) |
Assets SRE |
|
|
3,331 |
|
|
|
3,091 |
|
Assets of Corporate items and pensions |
|
|
(2,276 |
) |
|
|
(2,564 |
) |
Eliminations, Corporate Treasury and other reconciling items of
Segment Information: |
|
|
|
|
|
|
|
|
Asset-based adjustments: |
|
|
|
|
|
|
|
|
Intragroup financing receivables and investments |
|
|
24,079 |
|
|
|
10,834 |
|
Tax-related assets |
|
|
1,808 |
|
|
|
2,845 |
|
Liability-based adjustments: |
|
|
|
|
|
|
|
|
Pension plans and similar commitments |
|
|
2,666 |
|
|
|
2,780 |
|
Liabilities |
|
|
38,011 |
|
|
|
38,398 |
|
Assets classified as held for disposal and associated liabilities |
|
|
350 |
|
|
|
7,576 |
|
Eliminations, Corporate Treasury, other items |
|
|
(17,374 |
) |
|
|
(8,194 |
) |
|
|
|
|
|
|
|
Total Eliminations, Corporate Treasury and other reconciling items
of Segment Information |
|
|
49,540 |
|
|
|
54,239 |
|
|
|
|
|
|
|
|
Total Assets in Siemens Consolidated Balance Sheets |
|
|
92,830 |
|
|
|
91,555 |
|
|
|
|
|
|
|
|
In the nine months ended June 30, 2008 and 2007, Corporate items and pensions in the column
Profit includes (1,090) and (1,213) related to corporate items, as well as 52 and 31 related to
pensions, respectively. Included in (1,090) above are fees amounting to (347) for outside
advisors engaged by the Company in connection with investigations into alleged violations of
anti-corruption laws and related matters as well as remediation activities (see Note 12 for
additional information). In the nine months ended June 30, 2007, corporate items contains a (423)
fine imposed by the European Commission in connection with an antitrust investigation involving
suppliers of high-voltage gas-isolated switching systems in the power transmission and distribution
industry between 1988 and 2004.
50
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
The following table reconciles Free cash flow, Additions to intangible assets and property,
plant and equipment and Amortization, depreciation and impairments as disclosed in Segment
Information to the corresponding consolidated amount for the Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by |
|
|
Additions to intangible |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(used in) operating |
|
|
assets and property, |
|
|
Amortization, |
|
|
|
Free cash flow |
|
|
activities |
|
|
plant and equipment |
|
|
depreciation and |
|
|
|
(I)= (II)-(III) |
|
|
(II) |
|
|
(III) |
|
|
impairments |
|
|
|
Nine months ended June 30, |
|
|
Nine months ended June 30, |
|
|
Nine months ended June 30, |
|
|
Nine months ended June 30, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
2007 |
|
Segment Information -
based on continuing
operations |
|
|
2,953 |
|
|
|
4,202 |
|
|
|
5,083 |
|
|
|
6,229 |
|
|
|
(2,130 |
) |
|
|
(2,027 |
) |
|
|
2,024 |
|
|
|
1,791 |
|
Discontinued Operations |
|
|
(815 |
) |
|
|
(2,724 |
) |
|
|
(667 |
) |
|
|
(2,252 |
) |
|
|
(148 |
) |
|
|
(472 |
) |
|
|
56 |
|
|
|
851 |
|
Impairment* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95 |
|
|
|
98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens Consolidated
Statements of Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(excluding Free cash flow) |
|
|
2,138 |
|
|
|
1,478 |
|
|
|
4,416 |
|
|
|
3,977 |
|
|
|
(2,278 |
) |
|
|
(2,499 |
) |
|
|
2,175 |
|
|
|
2,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Goodwill impairment and impairment of non-current available-for-sale financial assets and
investments accounted for using the equity method continuing operations. |
16.
Subsequent events
At the end of July 2008, Siemens announced the sale of a 51% stake in Siemens Enterprise
Communications (SEN) to The Gores Group, a U.S.-based financial and operational management firm.
The Gores Group will contribute two businesses, which will complement the business of SEN. The transaction,
which is subject to the approval of regulatory authorities, is expected to close by the end of the
current fiscal year and to result in a substantial negative financial impact (see Note 2 b)
discontinued operations for additional information). Siemens
and The Gores Group together have committed to contribute a financial investment totaling 350.
At the end of July 2008, the Division Osram completed the sale of its Global Tungsten & Powders
unit; the regulatory approvals have been issued. Siemens expects a gain as a result of this transaction.
At the beginning of August 2008, Siemens signed an agreement to transfer an 80.2% stake in Siemens
Home and Office Communication Devices GmbH & Co. KG (SHC), reported in Other Operations, to ARQUES Industries AG. The
transaction, which is subject to regulatory approval, is expected to close on October 1, 2008.
51
SIEMENS
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(in millions of , except where otherwise stated and per share amounts)
Supervisory Board and Managing Board changes
Supervisory Board changes
Pursuant to the German Stock Corporation Act and the Articles of Association of Siemens AG,
the term of all 20 members of the Supervisory Board ended at the close of the Annual Shareholders
Meeting on January 24, 2008.
The Annual Shareholders Meeting on January 24, 2008, elected the following ten persons to the
Supervisory Board as shareholder representatives with effect as of the conclusion of the Annual
Shareholders Meeting: Dr. Josef Ackermann, Jean-Louis Beffa, Gerd von Brandenstein, Dr. Gerhard
Cromme, Michael Diekmann, Dr. Hans Michael Gaul, Prof. Dr. Gruss, Dr. Nicola Leibinger-Kammüller,
Håkan Samuelsson and Lord Iain Vallance of Tummel.
The ten employee representatives on the Supervisory Board were elected by a conference of
employee delegates on September 27, 2007 in accordance with the provisions of the German
Codetermination Act. The following persons were elected by the conference as employee
representatives with effect as of the conclusion of the Annual Shareholders Meeting on January 24,
2008: Lothar Adler, Bettina Haller, Heinz Hawreliuk, Ralf Heckmann, Berthold Huber, Harald Kern,
Werner Mönius, Dieter Scheitor, Dr. Rainer Sieg, and Birgit Steinborn. Further, Sibylle Wankel was
elected as a substitute for Heinz Hawreliuk.
In the constitutive meeting of the newly elected Supervisory Board on January 24, 2008, Dr.
Gerhard Cromme was elected as Chairman of the Supervisory Board.
Managing Board changes
Effective October 1, 2007, the Supervisory Board appointed Peter Y. Solmssen a full member of the
Managing Board and approved his election to the Corporate Executive Committtee.
Effective December 31, 2007, Rudi Lamprecht, Eduardo Montes, Dr. Uriel J. Sharef and Prof. Dr.
Klaus Wucherer resigned from the Managing Board; Dr. Jürgen Radomski retired.
As announced on November 28, 2007, the new Managing Board structure, eliminating the previous
distinction between Managing Board and Corporate Executive Committee, became effective on January
1, 2008.
Effective January 1, 2008, Wolfgang Dehen and Dr. Siegfried Russwurm were appointed as members
of the Managing Board of Siemens AG. Prof. Dr. Erich R. Reinhardt resigned as member of the
Managing Board effective as of April 30, 2008. The Supervisory Board of Siemens AG appointed Jim
Reid-Anderson as a Managing Board member of Siemens AG. Jim Reid-Anderson succeeds Prof. Dr. Erich
R. Reinhardt as of May 1, 2008.
52
Review report
To Siemens Aktiengesellschaft, Berlin and Munich
We have reviewed the condensed interim consolidated financial statements of Siemens
Aktiengesellschaft, Berlin and Munich (the Company) - comprising the balance sheet, the statements
of income, income and expense recognized in equity and cash flow and selected explanatory notes -
together with the interim group management report of Siemens Aktiengesellschaft, for the period
from October 1, 2007 to June 30, 2008 that are part of the quarterly financial report according to
§ 37x Abs. 3 WpHG. The preparation of the condensed interim consolidated financial statements in
accordance with those IFRS applicable to interim financial reporting as adopted by the EU, and of
the interim group management report in accordance with the requirements of the WpHG applicable to
interim group management reports, is the responsibility of the Companys management. Our
responsibility is to issue a report on the condensed interim consolidated financial statements and
on the interim group management report based on our review. In addition we have been instructed to
issue a report as to whether no matters have come to our attention that cause us to presume that
the condensed interim consolidated financial statements have not been prepared, in material
respects, in accordance with full IFRS.
We performed our review of the condensed interim consolidated financial statements and the
interim group management report in accordance with the German generally accepted standards for the
review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW) under
additional consideration of International Standard on Review Engagements 2410, Review of Interim
Financial Information Performed by the Independent Auditor of the Entity. Those standards require
that we plan and perform the review so that we can preclude through critical evaluation, with a
certain level of assurance, that the condensed interim consolidated financial statements have not
been prepared, in material aspects, in accordance with the IFRS applicable to interim financial
reporting as adopted by the EU and with full IFRS, and that the interim group management report has
not been prepared, in material aspects, in accordance with the requirements of the WpHG applicable
to interim group management reports. A review is limited primarily to inquiries of company
employees and analytical assessments and therefore does not provide the assurance attainable in a
financial statement audit. Since, in accordance with our engagement, we have not performed a
financial statement audit, we cannot issue an auditors report.
Based on our review, no matters have come to our attention that cause us to presume that the
condensed interim consolidated financial statements have not been prepared, in material respects,
in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and with
full IFRS, or that the interim group management report has not been prepared, in material respects,
in accordance with the requirements of the WpHG applicable to interim group management reports.
Munich, August 1, 2008
KPMG Deutsche Treuhand-Gesellschaft
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
|
|
|
v. Heynitz
|
|
Rohrbach |
Wirtschaftsprüfer
|
|
Wirtschaftsprüfer |
53
Quarterly summary
(in unless otherwise indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal year 2008 |
|
|
Fiscal year 2007 |
|
|
|
3rd Quarter |
|
|
2nd Quarter |
|
|
1st Quarter |
|
|
4th Quarter |
|
|
3rd Quarter |
|
|
2nd Quarter |
|
|
1st Quarter |
|
Revenue (in millions of )(1) |
|
|
19,182 |
|
|
|
18,094 |
|
|
|
18,400 |
|
|
|
20,201 |
|
|
|
17,517 |
|
|
|
18,001 |
|
|
|
16,729 |
|
Income from continuing operations
(in millions of ) |
|
|
1,475 |
|
|
|
565 |
|
|
|
1,078 |
|
|
|
1,394 |
|
|
|
608 |
|
|
|
1,286 |
|
|
|
621 |
|
Net income (in millions of ) |
|
|
1,419 |
|
|
|
412 |
|
|
|
6,475 |
|
|
|
(74 |
) |
|
|
2,065 |
|
|
|
1,259 |
|
|
|
788 |
|
Free cash flow (in millions of )(1) (2) |
|
|
1,547 |
|
|
|
1,623 |
|
|
|
(217 |
) |
|
|
2,553 |
|
|
|
1,943 |
|
|
|
2,619 |
|
|
|
(360 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key capital market data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share(1) |
|
|
1,61 |
|
|
|
0.59 |
|
|
|
1.14 |
|
|
|
1.45 |
|
|
|
0.64 |
|
|
|
1.39 |
|
|
|
0.65 |
|
Diluted earnings per share(1) |
|
|
1,61 |
|
|
|
0.59 |
|
|
|
1.13 |
|
|
|
1.41 |
|
|
|
0.63 |
|
|
|
1.33 |
|
|
|
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siemens stock price(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High |
|
|
77,10 |
|
|
|
107.29 |
|
|
|
108.86 |
|
|
|
111.17 |
|
|
|
107.38 |
|
|
|
85.50 |
|
|
|
76.27 |
|
Low |
|
|
67,90 |
|
|
|
66.42 |
|
|
|
89.75 |
|
|
|
86.29 |
|
|
|
79.93 |
|
|
|
75.32 |
|
|
|
66.91 |
|
Period-end |
|
|
70,52 |
|
|
|
68.65 |
|
|
|
108.86 |
|
|
|
96.42 |
|
|
|
106.57 |
|
|
|
80.02 |
|
|
|
75.14 |
|
Siemens stock performance on a quarterly basis
(in percentage points) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compared to DAX® index |
|
|
4.51 |
|
|
|
16.74 |
|
|
|
10.28 |
|
|
|
7.70 |
|
|
|
17.42 |
|
|
|
3.55 |
|
|
|
0.65 |
|
Compared to Dow Jones STOXX® index |
|
|
6.51 |
|
|
|
20.14 |
|
|
|
16.10 |
|
|
|
5.88 |
|
|
|
26.60 |
|
|
|
5.43 |
|
|
|
1.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares issued (in millions) |
|
|
914 |
|
|
|
914 |
|
|
|
914 |
|
|
|
914 |
|
|
|
903 |
|
|
|
896 |
|
|
|
892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market capitalization (in millions of )(4) |
|
|
61,840 |
|
|
|
61,399 |
|
|
|
99,452 |
|
|
|
88,147 |
|
|
|
96,180 |
|
|
|
71,715 |
|
|
|
66,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit rating of long-term debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Standard & Poors |
|
AA- |
|
|
AA- |
|
|
AA- |
|
|
AA- |
|
|
AA- |
|
|
AA- |
|
|
AA- |
|
Moodys |
|
|
A1 |
|
|
|
A1 |
|
|
|
A1 |
|
|
|
A1 |
|
|
Aa3 |
|
|
Aa3 |
|
|
Aa3 |
|
|
|
|
(1) Continuing operations. |
|
|
|
(2)
Net cash provided by operating activities less additions to intangible assets and
property, plant and equipment. |
|
|
|
(3)
XETRA closing prices, Frankfurt. |
|
|
|
(4)
Based on shares outstanding. |
|
|
54
Siemens financial calendar*
|
|
|
|
|
Preliminary figures for fiscal year/Press conference |
|
Nov. 13, 2008 |
Annual Shareholderss Meeting for fiscal 2008 |
|
Jan. 27, 2009 |
|
|
|
* |
|
Provisional. Updates will be posted at: www.siemens.com/financial_calendar |
Information resources
|
|
|
Telephone
|
|
+49 89 636-33032 (Press Office) |
|
|
+49 89 636-32474 (Investor Relations) |
Fax
|
|
+49 89 636-32825 (Press Office) |
|
|
+49 89 636-32830 (Investor Relations) |
E-mail
|
|
press@siemens.com |
|
|
investorrelations@siemens.com |
Address
Siemens AG
Wittelsbacherplatz 2
D-80333 Munich
Federal Republic of Germany
Internet www.siemens.com
Designations used in this Report may be trademarks, the use
of which by third parties for their own purposes could violate
the rights of the trademark owners.
© 2008 by Siemens AG, Berlin and Munich
55
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
|
|
|
SIEMENS AKTIENGESELLSCHAFT
|
|
Date: August 4, 2008 |
/s/ Dr. Klaus Patzak
|
|
|
Name: |
Dr. Klaus Patzak |
|
|
Title: |
Corporate Vice President and Controller |
|
|
|
|
|
|
|
|
|
|
|
/s/ Dr. Juergen M. Wagner
|
|
|
Name: |
Dr. Juergen M. Wagner |
|
|
Title: |
Head of Financial Disclosure and
Corporate Performance Controlling |
|
|