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 2, 2010

Commission File Number: 1-15174

Siemens Aktiengesellschaft

(Translation of registrant’s name into English)

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

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

Form 20-F þ Form 40-F o

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

Yes o No þ

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

Yes o No þ

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

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

 

 

Table of contents

Key figures

Interim group management report

Condensed Interim Consolidated Financial Statements

Notes

Supervisory Board and Managing Board

Review report

Quarterly summary

Siemens financial calendar

      

Introduction

     Siemens AG’s Interim Report for the Siemens Group complies with the applicable legal requirements of the German Securities Trading Act (Wertpapierhandelsgesetz — WpHG) regarding quarterly financial reports, and comprises Condensed Interim Consolidated Financial Statements and an Interim group management report in accordance with § 37x (3) WpHG. The Condensed Interim Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations thereof as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU). The Condensed Interim Consolidated Financial Statements also comply with IFRS as issued by the IASB. This Interim Report should be read in conjunction with our Annual Report for fiscal 2009, which includes a detailed analysis of our operations and activities.

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

Key figures1		Q3 and first nine months of fiscal 20102

(unaudited; in millions of €, except where otherwise stated)

1		New orders and order backlog; adjusted or organic growth rates of Revenue and new orders; book-to-bill ratio; Total Sectors profit; ROE; ROCE; Free cash flow; cash conversion rate; EBITDA (adjusted); EBIT (adjusted); earnings effect from purchase price allocation (PPA effects) and integration costs; net debt and adjusted industrial net debt are or may be non-GAAP financial measures. A definition of these supplemental financial measures, a reconciliation to the most directly comparable IFRS financial measures and information regarding the usefulness and limitations of these supplemental financial measures are available on our Investor Relations website under www.siemens.com/nonGAAP.
2		April 1, 2010 — June 30, 2010 and October 1, 2009 — June 30, 2010.
3		Adjusted for portfolio and currency translation effects.
4		Earnings per share — attributable to shareholders of Siemens AG. For fiscal 2010 and 2009 weighted average shares outstanding (basic) (in thousands) for the third quarter amounted to 868,863 and 866,426 respectively and for the first nine months to 867,890 and 864,282 shares respectively.
5		Discontinued operations primarily consist of former Com activities, comprising carrier networks, enterprise networks and mobile devices activities.
6		Continuing and discontinued operations.
7		Profit margin including PPA effects is 16.0% for Healthcare and 12.6% for Diagnostics.
8		Return on equity is calculated as annualized Income before income taxes of Q3 divided by average allocated equity for Q3 of fiscal 2010 (€1.475 billion).

Interim group management report

Overview of financial results for the third quarter of fiscal 2010
(Three months ended June 30, 2010)

	•		For the first time since the fourth quarter of fiscal 2008, both revenue and orders increased year-over-year. Revenue also increased sequentially for the second quarter in a row in fiscal 2010.
	•		Orders of €20.871 billion were up 22% compared to the prior-year quarter (16% organically), including order growth in all three Sectors and all three reporting regions. The combined order backlog for the Sectors increased to €89 billion.
	•		Revenue of €19.170 billion was 4% higher (level organically), despite substantial order declines throughout the prior fiscal year.
	•		Total Sectors profit for the quarter rose 40% year-over-year, to €2.331 billion.
	•		Income from continuing operations was €1.441 billion (basic EPS €1.63), up 18% from the third quarter a year earlier, and net income of €1.435 billion (basic EPS €1.62) was 9% higher.
	•		Free cash flow from continuing operations improved substantially, to €2.145 billion from €1.064 billion in the third quarter a year ago.

     Management’s perspective on third-quarter results. In the third quarter of fiscal 2010, Siemens gained further momentum. Such rapid order growth last occurred in 2008. Strong demand took the combined order backlog for the Sectors to the highest level since we adopted our Sector reporting structure at the beginning of fiscal 2008. Profit Total Sectors also reached its highest point under this Sector structure.

     Strong order growth lifts Sectors’ backlog. All three Sectors delivered topline growth in the third quarter, and our short-cycle businesses grew particularly quickly. Orders climbed 22%, the first quarterly increase in new orders compared to a prior-year period since the fourth quarter of fiscal 2008. Revenue rose more modestly at 4%, due to lower order intake during prior periods. Reported orders and revenue both benefited from currency translation effects. On an organic basis, excluding currency translation and portfolio effects, orders rose 16% and revenue came in level with the prior-year quarter. The Total Sectors book-to-bill ratio was 1.10. The combined order backlog for the three Sectors, which benefited from positive currency translation effects, increased to €89 billion. This is the highest level since we adopted our Sector structure at the beginning of fiscal 2008.

     Sequential revenue growth continues in all Sectors in the third quarter of fiscal 2010. Revenue in Industry rose 7% compared to the prior-year period on higher sales in five of the Sector’s six Divisions. Healthcare revenue increased 10% year-over-year with contributions from all Divisions. Reported revenue in Energy came in just above the prior-year level. All three Sectors posted their second straight quarter of sequential revenue growth in fiscal 2010. On a geographic basis, higher revenue included double-digit increases in Asia, Australia and the Americas, again including strong growth in emerging markets. Within an overall decline in the region comprising Europe, the Commonwealth of Independent States (C.I.S.), Africa and the Middle East, revenue rose 9% in Germany.

     Double-digit order growth in all Sectors. Order intake increased in all Sectors, led by a 33% rise in Industry including double-digit growth in all Divisions. Energy reported order growth of 18%, due mainly to substantially higher volume from major orders. Healthcare also posted double-digit demand growth with all Divisions contributing to the increase. Orders grew in all three regions. The Americas reported the sharpest increase, due in part to a number of large Energy contracts won during the quarter. Double-digit growth in Europe, C.I.S., Africa, Middle East was led by Industry. Within an overall increase for Asia, Australia, orders came in lower in India due to a large power transmission order in the prior-year period.

     Total Sectors profit reached €2.331 billion in the third quarter. This is the highest total since we adopted our Sector structure at the beginning of fiscal 2008. All three Sectors delivered profit increases compared to the prior-year period. Energy remained the top earnings contributor, again executing well on its large order backlog. Industry produced high double-digit profit growth, due mainly to recovery of its short cycle businesses as well as tight cost management. Healthcare also posted high double-digit profit growth, in part because the prior-year period was burdened by charges of €128 million associated with particle therapy contracts.

     Income climbs on strong rise in Total Sectors profit. Income from continuing operations for the third quarter rose 18% year-over-year, to €1.441 billion. Basic earnings per share (EPS) on a continuing basis rose to €1.63 from €1.35 a year earlier. Higher Total Sectors profit was the main driver of these increases. Corporate items and pensions for the third quarter improved year-over-year, and Centrally managed portfolio activities recorded a lower loss. These improvements were more than offset by significantly lower profit from Equity Investments, lower gains from disposals of real estate at Siemens Real Estate (SRE), a loss at Siemens IT Solutions and Services, and negative results from Corporate Treasury activities. Net income rose to €1.435 billion in the third quarter. A year earlier, net income of €1.317 billion included €93 million in income from discontinued operations, which benefited from a €154 million effect related to the sale of a stake in the enterprise networks business. Basic EPS increased to €1.62 compared to €1.45 a year earlier.

     Sectors generate substantial increase in Free cash flow. Free cash flow at the Sector level climbed to €2.867 billion in the third quarter, taking Free cash flow from continuing operations up to €2.145 billion from €1.064 billion in the prior-year period. Free cash flow from continuing operations rose on the strong increase in Total Sectors profit compared to the prior-year period and positive changes in net working capital. The current period included approximately €0.1 billion in outflows for severance charges relating to structural initiatives as well as SG&A reduction. The prior-year quarter included approximately €0.3 billion in outflows stemming from previous charges related to project reviews and structural initiatives as well as to SG&A reduction. The cash conversion rate climbed to 1.49 compared to 0.87 in the same quarter a year earlier.

     ROCE rises on higher income. On a continuing basis, return on capital employed (ROCE) rose to 14.2% from 11.7% in the third quarter a year earlier. The increase was due mainly to higher income from continuing operations. To a lesser extent, ROCE improved on a decline in average capital employed.

     Pension underfunding increases. The estimated underfunding of Siemens’ principal pension plans as of June 30, 2010, amounted to approximately €6.1 billion, compared to an underfunding of approximately €4.0 billion at the end of fiscal 2009 and approximately €4.6 billion at the end of the second quarter.

     The decline in funded status since March 31, 2010 is due primarily to an increase in Siemens’ defined benefit obligation (DBO) and, to a lesser extent, a negative return on plan assets. The DBO rose due to a decrease in the discount rate assumption as of June 30, 2010 as well as with accrued service and interest costs.

Results of Siemens

Results of Siemens — Three months ended June 30, 2010

     The following discussion presents selected information for Siemens for the third quarter of fiscal 2010:

     Orders and revenue

     In the third quarter, demand increased in all Sectors, with particular strength in our short-cycle businesses. As a result, orders climbed 22%, to €20.871 billion, the first quarterly increase in new orders compared to a prior-year period since the fourth quarter of fiscal 2008. Revenue rose more modestly at 4%, to €19.170 billion, due to lower order intake during prior periods. Reported orders and revenue both benefited from currency translation effects. On an organic basis, excluding the net effect of currency translation and portfolio transactions, orders rose 16% and revenue came in level with the prior-year quarter. The book-to-bill ratio for Total Sectors was 1.10, and 1.09 for Siemens overall. The combined order backlog for the three Sectors increased to €89 billion as of June 30, 2010, benefiting from positive currency translation effects.

		New Orders (location of customer)
		Three months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009(1)				Actual				Adjusted(2)				Currency				Portfolio
Europe, C.I.S.(3), Africa, Middle East			11,043				9,750				13	%			11	%			3	%			(1	)%
therein Germany			3,363				2,327				45	%			44	%			0	%			0	%
Americas			6,350				4,322				47	%			35	%			12	%			(1	)%
therein U.S.			4,556				3,008				51	%			40	%			13	%			(1	)%
Asia, Australia			3,478				3,088				13	%			3	%			10	%			0	%
therein China			1,457				1,077				35	%			29	%			7	%			0	%
therein India			528				592				(11	)%			(20	)%			9	%			0	%
Siemens			20,871				17,160				22	%			16	%			7	%			(1	)%

     Orders related to external customers rose 22% in the third quarter of fiscal 2010. The Industry Sector – our largest Sector by revenue – saw orders climb 33% compared to a low basis of comparison in the same period a year earlier. The steadily increasing demand in the Sector’s short-cycle businesses was accompanied by more stable long-cycle businesses, resulting in double-digit order growth at all Industry Divisions for the quarter. Order intake increased 18% in the Energy Sector, largely due to a higher volume from major orders at Power Transmission, Renewable Energy and Oil & Gas. In contrast, order intake at Fossil Power Generation came in 14% below the prior-year period. The Healthcare Sector recorded double-digit order growth, on higher order intake at all Divisions.

     Orders rose 13% in the region Europe, C.I.S., Africa, Middle East – our largest reporting region. Order intake in the Industry Sector increased 29% in the region, led by Mobility which took in a large rolling stock order in Russia during the third quarter. Orders also rose in Energy and Healthcare, due primarily to a number of major orders at Power Transmission and higher demand at Imaging & IT. Major orders won by the Energy Sector in the current period were the primary driver of the 45% order growth in Germany. Order intake rose 47% in the Americas, driven by substantially higher demand in the Energy Sector, including a higher volume from major orders at Fossil Power Generation and Renewable Energy. Order development was also influenced by positive currency translation effects, primarily from the U.S. dollar. Orders in Industry and Healthcare also came in above the prior-year level in the Americas region. In Asia, Australia orders increased 13% year-over-year on strong growth in Industry and Healthcare, and on positive currency translation effects. Order intake came in well below the prior-year level in the Energy Sector, due primarily to a lower volume from major orders. Order growth of 35% in China was driven by higher demand in Industry and Healthcare. Lower order intake in India was due primarily to comparison to the prior-year period, which included a large contract win at Power Transmission.

		Revenue (location of customer)
		Three months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009(1)				Actual				Adjusted(2)				Currency				Portfolio
Europe, C.I.S.(3), Africa, Middle East			10,103				10,303				(2	)%			(3	)%			2	%			(1	)%
therein Germany			2,859				2,612				9	%			9	%			0	%			0	%
Americas			5,485				4,922				11	%			3	%			9	%			(1	)%
therein U.S.			3,885				3,742				4	%			(3	)%			8	%			(1	)%
Asia, Australia			3,582				3,123				15	%			6	%			9	%			0	%
therein China			1,566				1,376				14	%			9	%			5	%			0	%
therein India			474				386				23	%			8	%			15	%			0	%
Siemens			19,170				18,348				4	%			0	%			5	%			0	%

     Revenue related to external customers rose 4% compared to third quarter a year earlier, including positive currency translation effects that contributed to revenue increases in all Sectors. Revenue in the Industry Sector came in 7% above the prior-year period, due primarily to strong growth at the Sector’s short-cycle businesses led by Industry Automation and OSRAM. Revenue rose 10% in the Healthcare Sector, with Imaging & IT leading higher absolute sales at all of Healthcare’s Divisions. Reported revenue came in just above the prior-year quarter in the Energy Sector, due to lower order intake in prior periods. On an organic basis, only Renewable Energy recorded higher revenue in the Sector.

     In Europe, C.I.S., Africa, Middle East, third-quarter revenue decreased 2% year-over-year, including lower sales in Energy and Healthcare. Revenue in the Industry Sector came in just above the prior-year period, with only Industry Automation and OSRAM reporting increases compared to the third quarter a year earlier. Higher sales in Germany included growth in all Sectors, including a strong revenue contribution from the Mobility Division and growth at Industry’s short-cycle businesses. Due primarily to positive currency translation effects, particularly from the U.S. dollar, revenue rose 11% in the Americas, including increases in reported revenue in all Sectors. On an organic basis, only the Healthcare Sector recorded a modest sales increase in the U.S. year-over-year. Revenue rose 15% in Asia, Australia, benefiting from positive currency translation effects. Double-digit revenue increases in Industry and Healthcare were only partly offset by a decline in the Energy Sector. Revenue development in China followed a similar pattern as for the Asia, Australia region overall. Revenue increased 23% in India, including strong positive currency translation effects and substantially higher sales at Power Transmission.

Consolidated Statements of Income

		Three months
		ended June 30,
(in millions of €)		2010				2009				% Change
Gross profit on revenue			5,787				4,981				16	%
as percentage of revenue			30.2	%			27.1	%

     Gross profit for the third quarter rose 16% compared to the same period a year earlier as all Sectors reported higher gross profits and increased gross profit margins year-over-year with Industry and Healthcare delivering the strongest gross profit increases. Gross profit growth in Industry year-over-year notably included volume-driven increases in capacity utilization in the Sector’s short-cycle businesses, primarily at Industry Automation and OSRAM. In the Healthcare Sector, a significant factor in the year-over-year gross profit increase was the comparison to the prior-year period that included a charge of €128 million related to particle therapy contracts at Workflow & Solutions. While revenue remained flat in the Energy Sector, gross profit rose on higher gross profit margins at all Divisions. In combination, the above factors resulted in a gross profit margin of 30.2% for Siemens overall, significantly up from 27.1% in the third quarter a year earlier.

		Three months
		ended June 30,
(in millions of €)		2010				2009				% Change
Research and development expenses			(936	)			(989	)			(5	)%
as percentage of revenue			4.9	%			5.4	%			—
Marketing, selling and general administrative expenses			(2,871	)			(2,586	)			11	%
as percentage of revenue			15.0	%			14.1	%			—
Other operating income			188				597				(69	)%
Other operating expense			(100	)			(206	)			(51	)%
Income (loss) from investments accounted for using the equity method, net			34				(97	)			—
Interest income			543				512				6	%
Interest expense			(470	)			(508	)			(7	)%
Other financial income (expense), net			(111	)			(42	)			164	%

     Research and development (R&D) expenses decreased to €936 million or 4.9% of revenues, from €989 million or 5.4% of revenues in the prior-year period, including lower outlays in Energy and Industry. Marketing, selling and general administrative (SG&A) expenses rose to €2.871 billion or 15.0% of revenues, from €2.586 billion or 14.1% of revenues in the third quarter a year earlier, on increases in all Sectors.

     Other operating income decreased to €188 million in the third quarter from €597 million in the same period a year earlier. The prior-year quarter included a €309 million gain on the sale of our stake in Fujitsu Siemens Computers (Holding) B.V. (FSC) to Fujitsu Limited as well as higher income related to the disposal of real estate, including a gain of €221 million on the disposal of Siemens’ residential real estate holdings. For comparison, in the current period Siemens ceased to consolidate a subsidiary due to loss of control and recorded a related gain of €40 million. For additional information regarding this gain, see “Notes to Condensed Interim Consolidated Financial Statements” within this Interim Report.

     Other operating expense was €100 million, down from €206 million in the third quarter of fiscal 2009. The prior-year quarter included a charge of €54 million related to a global settlement agreement with the World Bank Group.

     Income (loss) from investments accounted for using the equity method, net was a positive €34 million, compared to a negative €97 million in the third quarter a year earlier. The difference was due primarily to an equity investment loss in the prior-year period of €121 million related to Enterprise Networks Holding B.V. (EN).

     Interest income increased to €543 million in the third quarter, from €512 million in the same period a year earlier, due primarily to a higher expected return on plan assets related to our pension plans. Interest expense was €470 million, down from €508 million in the prior-year quarter. The reduction in interest expense included lower interest rates compared to the prior-year period.

     Other financial income (expense), net was a negative €111 million in the third quarter, compared to a negative €42 million in the same period a year earlier. The difference is due primarily to changes in fair market values for derivatives, including interest rate derivatives, not qualifying for hedge accounting.

		Three months
		ended June 30,
(in millions of €)		2010				2009				% Change
Income from continuing operations before income taxes			2,064				1,662				24	%
Income taxes			(623	)			(438	)			42	%
as percentage of income from continuing operations before income taxes			30	%			26	%			—
Income from continuing operations			1,441				1,224				18	%
Income (loss) from discontinued operations, net of income taxes			(6	)			93				—
Net income			1,435				1,317				9	%
Net income attributable to non-controlling interests			24				57				—
Net income attributable to shareholders of Siemens AG			1,411				1,260				12	%

     Income from continuing operations before income taxes was €2.064 billion in the third quarter, compared to €1.662 billion in the same period a year earlier. The change year-over-year was due to the factors mentioned above, primarily including higher gross profit in all Sectors driven by higher revenue and improved gross profit margins, partly offset by the gain on the sale of our stake in FSC in the prior-year period. The effective tax rate was 30%, up from 26% in the third quarter a year earlier. The prior-period rate was positively affected by the tax-free gain on the sale of our stake in FSC, partly offset by the negative result from investments accounted for using the equity method. As a result, Income from continuing operations after taxes was €1.441 billion in the third quarter of fiscal 2010, up from €1.224 billion in the prior-year period.

     Discontinued operations primarily include former Com activities, comprising telecommunications carrier activities transferred into Nokia Siemens Networks B.V. (NSN) in the third quarter of fiscal 2007; the enterprise networks business, 51% of which was divested during the fourth quarter of fiscal 2008; and the mobile devices business sold to BenQ Corporation in fiscal 2005. Income from discontinued operations in the current quarter was a negative €6 million, compared to a positive €93 million in the third quarter a year earlier. The prior-year period included a positive effect of €154 million from a settlement between Siemens and The Gores Group in connection with the sale of the stake in the enterprise networks business. For additional information regarding discontinued operations, see “Notes to Condensed Interim Consolidated Financial Statements” within this Interim Report.

     Net income for Siemens in the third quarter was €1.435 billion compared to €1.317 billion in the same period a year earlier. Net income attributable to shareholders of Siemens AG was €1.411 billion, up from €1.260 billion in the third quarter of fiscal 2009.

Results of Siemens — Nine months ended June 30, 2010

     The following discussion presents selected information for Siemens for the first nine months of fiscal 2010:

     Orders and revenue

     Both revenue and orders for the first nine months of fiscal 2010 came in 4% lower than the prior-year period, at €54.749 billion and €57.691 billion, respectively. Organic volume development was in line with reported figures, as currency exchange fluctuations within the first nine months were largely offsetting. The combined book-to-bill ratio was 1.06 for Total Sectors and 1.05 for Siemens overall for the current period.

		New Orders (location of customer)
		Nine months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009(1)				Actual				Adjusted(2)				Currency				Portfolio
Europe, C.I.S.(3), Africa, Middle East			31,755				35,643				(11	)%			(11	)%			1	%			(1	)%
therein Germany			8,895				9,497				(6	)%			(6	)%			0	%			0	%
Americas			16,232				14,487				12	%			12	%			0	%			0	%
therein U.S.			11,607				10,718				8	%			11	%			(2	)%			0	%
Asia, Australia			9,704				10,114				(4	)%			(6	)%			2	%			0	%
therein China			3,986				4,190				(5	)%			(4	)%			(1	)%			0	%
therein India			1,526				1,737				(12	)%			(13	)%			1	%			0	%
Siemens			57,691				60,244				(4	)%			(4	)%			1	%			(1	)%

     Orders related to external customers in the first nine months of fiscal 2010 decreased 4% year-over-year, due primarily to lower demand in the Energy Sector. Orders declined 11% in Energy, primarily due to Fossil Power Generation which saw market contraction resulting in a significantly lower volume from major orders compared to the prior-year period. In Industry, a rebound in orders in short-cycle businesses, primarily at OSRAM and Industry Automation, was offset by lower order intake at Mobility and Industry Solutions which recorded a lower volume from major orders year-over-year. Nine-month Healthcare orders came in 5% above the prior-year level, due to strong order intake at Imaging & IT.

     On a geographic basis, double-digit order growth in the Americas was more than offset by declines in other regions. In Europe, C.I.S., Africa, Middle East orders fell 11% driven by a decline in the Energy Sector. Energy orders decreased 22%, largely due to lower volume from major orders at Fossil Power Generation and Renewable Energy. In the Industry Sector, orders for the region came in slightly lower year-over-year, as growth at the Sector’s short-cycle businesses was offset by slower demand at other Divisions, particularly at Industry Solutions. Healthcare orders remained stable in the region. Within the region, orders in Germany came in 6% lower compared to the prior-year period, which included large contract wins at Mobility. In the Americas orders rose 12% on growth in all Sectors. The increase was driven by a 32% surge in the Energy Sector, due largely to a higher volume from major orders at Renewable Energy. Order growth in the U.S. included a substantial part of these large contract wins. In Asia, Australia nine-month orders came in 4% lower compared to the prior-year period, due in part to a significantly lower volume from major orders in Industry and Energy, primarily at Mobility and Fossil Power Generation. Healthcare orders in the region came in above the prior-year level, led by strong demand at Imaging & IT. The lower volume from major orders mentioned above for the region was evident in China and India. The prior-year period included a large contract win for high-speed trains in China and major orders for Power Transmission and Industry Solutions in India.

		Revenue (location of customer)
		Nine months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009(1)				Actual				Adjusted(2)				Currency				Portfolio
Europe, C.I.S.(3), Africa, Middle East			30,169				32,151				(6	)%			(6	)%			0	%			(1	)%
therein Germany			8,270				8,588				(4	)%			(3	)%			0	%			0	%
Americas			14,724				15,654				(6	)%			(6	)%			0	%			0	%
therein U.S.			10,654				11,944				(11	)%			(8	)%			(2	)%			0	%
Asia, Australia			9,857				9,132				8	%			5	%			3	%			0	%
therein China			4,063				3,791				7	%			8	%			(1	)%			0	%
therein India			1,350				1,149				17	%			13	%			4	%			0	%
Siemens			54,749				56,937				(4	)%			(4	)%			1	%			0	%

     Revenue related to external customers declined 4% compared to the first nine months a year earlier, on decreases in Industry and Energy. Revenue in Industry came in 4% below the prior-year level, driven by lower sales at Drive Technologies and Industry Solutions. In contrast, nine-month revenue at OSRAM rose by double digits year-over-year. The Energy Sector also posted a revenue decline of 4% on lower revenue in four of its five Divisions. Healthcare revenue for the first nine months came in 2% above the prior-year period, including modest growth at Imaging & IT and Diagnostics.

     On a geographic basis, growth in Asia, Australia was more than offset by declines in other regions. In Europe, C.I.S., Africa, Middle East revenue decreased 6% year-over-year due primarily to lower sales in the Industry Sector. Apart from OSRAM, all Divisions in the Sector reported lower nine-month revenues year-over-year, including double-digit declines at Drive Technologies and Industry Solutions. Revenue for Energy and Healthcare declined slightly in the region. In Germany, higher sales in Energy and Healthcare were more than offset by a revenue decline in the Industry Sector. In the Americas, revenue fell 6% year-over-year on lower sales in the U.S. and decreases in all Sectors. In Asia, Australia, revenue rose 8% in the first nine months of fiscal 2010 on double-digit growth in Industry and Healthcare. Revenue came in higher at five of the Industry Sector’s six Divisions, and all Healthcare Divisions reported double-digit revenue increases year-over-year. The Energy Sector recorded a revenue decline in the region. Higher revenue in India includes double-digit increases in all Sectors.

Consolidated Statements of Income

		Nine months
		ended June 30,
(in millions of €)		2010				2009				% Change
Gross profit on revenue			16,348				15,582				5	%
as percentage of revenue			29.9	%			27.4	%

     Gross profit for the first nine months came in 5% above the prior-year period on higher gross profit margins in all Sectors, benefiting from a previously disclosed pension curtailment gain in the second quarter of fiscal 2010. A double-digit gross profit increase in the Healthcare Sector included higher gross profits and margins in all Divisions. These increases benefited from a positive effect from currency hedging in the current period, and from comparison with the prior-year period which was burdened by charges of €169 million related to particle therapy contracts. While Energy and Industry recorded lower nine-month revenues year-over-year, both Sectors reported higher gross profits. Gross profit in Energy rose on a more favorable revenue mix and strong project performance. Higher gross profit in Industry included volume-driven increases in capacity utilization at OSRAM, and to a lesser extent, at Industry Automation as well as growth at Mobility. The other Divisions in Industry reported lower gross profits year-over-year. In combination, the above factors resulted in a gross profit margin of 29.9% for Siemens overall, significantly up from 27.4% in the first nine months a year earlier.

		Nine months
		ended June 30,
(in millions of €)		2010				2009				% Change
Research and development expenses			(2,678	)			(2,875	)			(7	)%
as percentage of revenue			4.9	%			5.0	%			—
Marketing, selling and general administrative expenses			(7,941	)			(7,974	)			0	%
as percentage of revenue			14.5	%			14.0	%			—
Other operating income			656				881				(26	)%
Other operating expense			(190	)			(491	)			(61	)%
Income (loss) from investments accounted for using the equity method, net			85				(29	)			—
Interest income			1,590				1,618				(2	)%
Interest expense			(1,406	)			(1,699	)			(17	)%
Other financial income (expense), net			(174	)			(281	)			(38	)%

     R&D expenses decreased to €2.678 billion or 4.9% of revenues, from €2.875 billion or 5.0% of revenues in the prior-year nine-month period, including lower outlays in Industry and Healthcare. SG&A expenses came in at €7.941 billion, nearly unchanged from €7.974 billion in the first nine months of fiscal 2009. As revenue declined in the current period, the SG&A expense ratio rose to 14.5% compared to 14.0% a year earlier.

     Other operating income decreased to €656 million in the first nine months of fiscal 2010. The current period includes a gain on the sale of the Mobility Division’s airfield lighting business. In addition, as mentioned above for the third quarter, Siemens ceased to consolidate a subsidiary due to loss of control and recorded a related gain of €40 million in the current period. Further, the first nine months of fiscal 2010 benefited from higher gains in connection with compliance-related matters, including a gain of €84 million related to an agreement with the provider of the Siemens’ directors and officers liability insurance, a net gain related to settlements with former members of Siemens’ Managing Board and Supervisory Board, and total gains of €40 million related to the recovery of funds frozen by authorities. For comparison, Other operating income of €881 million in the first nine months a year earlier included a gain of €327 million on the sale of our stake in FSC, higher gains related to the disposal of real estate, most notably Siemens’ residential real estate holdings as mentioned earlier for the third quarter, as well as income related to legal and regulatory matters.

     Other operating expense was €190 million, down from €491 million in the first nine months a year earlier. The difference is due partly to expenses in the prior-year period for outside advisors engaged in connection with investigations into alleged violations of anti-corruption laws and related matters as well as remediation activities, which amounted to €90 million. In addition, the first nine months of fiscal 2009 included the above-mentioned third quarter charge of €54 million related to a global settlement agreement with the World Bank Group as well as expenses related to the divestment of an industrial manufacturing unit in Austria.

     Income (loss) from investments accounted for using the equity method, net improved to a positive €85 million compared to a negative €29 million in the first nine months a year earlier, which included an equity investment loss of €119 million related to EN.

     Interest income decreased slightly to €1.590 billion in the first nine months, from €1.618 billion in the same period a year earlier. Interest expense was €1.406 billion, down from €1.699 billion in the first nine months of fiscal 2009. The decline in interest expense included lower interest rates compared to the prior-year period.

     Other financial income (expense), net was a negative €174 million in the first nine months compared to a negative €281 million a year earlier. While the current nine-month period included higher expenses related to the interest component associated with the measurement of provisions, primarily related to a major asset retirement obligation, the same period a year earlier included higher expenses resulting from allowances and write offs of finance receivables, as well as negative results of hedging activities not qualifying for hedge accounting.

		Nine months
		ended June 30,
(in millions of €)		2010				2009				% Change
Income from continuing operations before income taxes			6,290				4,732				33	%
Income taxes			(1,839	)			(1,293	)			42	%
as percentage of income from continuing operations before income taxes			29	%			27	%			—
Income from continuing operations			4,451				3,439				29	%
Income from discontinued operations, net of income taxes			13				121				(89	)%
Net income			4,464				3,560				25	%
Net income attributable to non-controlling interests			98				135				—
Net income attributable to shareholders of Siemens AG			4,366				3,425				27	%

     Income from continuing operations before income taxes was €6.290 billion in the first nine months, compared to €4.732 billion in the same period a year earlier. The change year-over-year was due to the factors mentioned above, primarily including higher gross profit in all Sectors, an improved financial result, and a reduction in R&D expenses compared to the prior-year period. The effective tax rate was 29%, up from 27% in the first nine months a year earlier. The effective tax rate in the prior-year period was positively affected by the tax-free gain on the sale of our stake in FSC. As a result, Income from continuing operations after taxes was €4.451 billion in the first nine months of fiscal 2010, up from €3.439 billion in the prior-year period.

     Discontinued operations primarily include former Com activities, comprising telecommunications carrier activities transferred into NSN in the third quarter of fiscal 2007; the enterprise networks business, 51% of which was divested during the fourth quarter of fiscal 2008; and the mobile devices business sold to BenQ Corporation in fiscal 2005. Income from discontinued operations in the first nine months of fiscal 2010 was a positive €13 million, down from a positive €121 million in the same period a year earlier. The net result in the prior-year period related mainly to legal matters in connection with the former Com activities and a loss on the sale of the stake in the enterprise networks business which was compensated by a positive income effect of €154 million from a settlement between Siemens and The Gores Group in the third quarter of fiscal 2009. For additional information regarding discontinued operations, see “Notes to Condensed Interim Consolidated Financial Statements” within this Interim Report.

     Net income for Siemens in the first nine months was €4.464 billion compared to €3.560 billion in the same period a year earlier. Net income attributable to shareholders of Siemens AG was €4.366 billion, up from €3.425 billion in the first nine months of fiscal 2009.

Portfolio activities

     At the beginning of November 2009, Siemens completed the acquisition of 100% of Solel Solar Systems Ltd. (Solel), a solar thermal power technology company. Solel, which was consolidated as of November 2009, will be integrated into the Energy Sector’s Renewable Energy Division. The aggregate consideration amounts to approximately €279 million (including cash acquired).

     At the beginning of November 2009, Siemens sold its airfield lighting business, which was part of the Industry Sector’s Mobility Division.

     At the end of December 2009, Siemens sold its 25% minority stake in Dräger Medical AG & Co. KG to the majority shareholder Drägerwerk AG & Co. KGaA. The investment was accounted for using the equity method in the Healthcare Sector.

     Siemens completed certain other portfolio transactions during the first nine months of fiscal 2010, which did not have a significant effect on its Interim Consolidated Financial Statements. For further information on acquisitions and dispositions, see “Notes to Condensed Interim Consolidated Financial Statements.”

Segment information analysis

Sectors

Industry — Three months ended June 30, 2010

Sector		Three months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Profit			900				534				69	%
Profit margin			10.3	%			6.6	%
New orders			8,805				6,597				33	%			27	%			7	%			(1	)%
Revenue			8,720				8,129				7	%			3	%			5	%			(1	)%

     Industry increased its third-quarter profit, revenue and orders compared to the prior-year period, when the Sector saw substantial weakness in its end markets. With an improved macroeconomic environment in the current quarter and continued execution on profitability initiatives, Industry generated Sector profit of €900 million. The Sector’s steadily recovering short-cycle businesses posted strong revenue growth and volume-driven profit increases, led by Industry Automation and OSRAM. Revenue grew more slowly for Industry overall, at 7%. New orders climbed 33% year-over-year on growth at all Divisions. In addition to organic growth, the Sector’s revenue and order totals benefited from currency translation effects amounting to seven percentage points for orders and five percentage points for revenue. Growth in orders was well-distributed geographically, with all three regions posting double-digit increases. While all three regions posted higher revenue, growth was driven by a double-digit increase in Asia, Australia, particularly including China. Industry’s book-to-bill ratio was above 1 for the quarter, and its order backlog increased to €29 billion.

Divisions		New Orders
		Three months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Industry Automation(2)(3)			1,783				1,265				41	%			35	%			6	%			0	%
Drive Technologies			1,859				1,358				37	%			31	%			6	%			0	%
Building Technologies(2)			1,823				1,599				14	%			8	%			6	%			0	%
OSRAM			1,153				911				27	%			21	%			8	%			(2	)%
Industry Solutions			1,487				1,170				27	%			19	%			8	%			0	%
Mobility			1,236				880				40	%			34	%			11	%			(4	)%

Divisions		Revenue
		Three months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Industry Automation(2)(3)			1,587				1,279				24	%			19	%			5	%			0	%
Drive Technologies			1,815				1,699				7	%			3	%			4	%			0	%
Building Technologies(2)			1,738				1,657				5	%			0	%			5	%			0	%
OSRAM			1,153				911				27	%			21	%			8	%			(2	)%
Industry Solutions			1,461				1,562				(6	)%			(11	)%			5	%			0	%
Mobility			1,593				1,590				0	%			(1	)%			4	%			(2	)%

Divisions		Profit												Profit margin
		Three months												Three months
		ended June 30,												ended June 30,
(in millions of €)		2010				2009				% Change				2010				2009
Industry Automation(1)			278				100				178	%			17.5	%			7.8	%
Drive Technologies			219				171				28	%			12.0	%			10.1	%
Building Technologies(1)			93				69				35	%			5.4	%			4.2	%
OSRAM			127				8				>200	%			11.0	%			0.9	%
Industry Solutions			75				90				(16	)%			5.2	%			5.8	%
Mobility			107				98				10	%			6.7	%			6.2	%

     Industry Automation was the Sector’s top profit contributor, delivering third-quarter profit of €278 million. Profit rose sharply compared to the prior-year period, due in part to economies of scale on significantly higher revenue. The Division also improved its business mix while maintaining cost discipline. Industry Automation recorded double-digit increases in revenue and orders in all three regions, with the fastest growth coming from Asia, Australia. Purchase price accounting (PPA) effects related to the fiscal 2007 acquisition of UGS Corp. were €37 million compared to €34 million in the third quarter a year earlier.

     Third-quarter profit at Drive Technologies rose 28% year-over-year, to €219 million. The increase was driven by a strong earnings improvement in the Division’s fast-growing short-cycle activities, which increased capacity utilization on higher revenue. Third-quarter revenue rose slowly for the Division overall due to the Division’s longer cycle businesses. Against a low basis of comparison in the prior-year quarter, orders came in 37% higher with increases in all business units and all three regions.

     Building Technologies increased its third-quarter profit year-over-year to €93 million, due mainly to earnings improvement in its low-voltage business. Revenue and orders grew in Asia, Australia and the Americas, even though the commercial construction market in the U.S. remained weak.

     Strong demand for OSRAM’s LEDs and automotive solutions fueled a 27% rise in third quarter revenue at OSRAM. The Division combined higher capacity utilization with an improved product mix and streamlined cost structure to generate €127 million in profit. Revenue climbed strongly in all geographic regions compared to the prior-year quarter. With increasing demand for next-generation solid-state and LED lighting solutions, OSRAM intends to continue investing in market expansion and LED production capacity in coming quarters.

     Industry Solutions posted profit of €75 million in the third quarter, below the level of the prior-year period. Third-quarter revenue declined 6% year-over-year, influenced by lower order intake in recent periods particularly in the metals technologies business. Against a low basis of comparison, orders came in 27% above the level of the prior-year quarter on growth in Asia, Australia and the Americas.

     Mobility increased third-quarter profit to €107 million on level revenue, as the Division benefited from the execution of programs to improve performance in its project business. Order growth came primarily from significantly higher orders in the rolling stock business, including a major order in Russia.

Industry — Nine months ended June 30, 2010

Sector		Nine months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Profit			2,595				2,139				21	%
Profit margin			10.3	%			8.2	%
New orders			25,076				25,174				0	%			(1	)%			1	%			0	%
Revenue			25,088				26,062				(4	)%			(4	)%			1	%			0	%

     Industry recorded a 21% increase in profit for the first nine months due to profitability measures as well as a recovery in the markets of its short-cycle businesses beginning in the second quarter of the current fiscal year. Most Divisions increased their profit compared to the first nine months a year earlier, with the largest contributions coming from the Sector’s short-cycle businesses at Industry Automation and OSRAM. Profit declined significantly in longer-cycle businesses at Industry Solutions and Drive Technologies.

     Nine-month profit benefited from €76 million in gains related to curtailment of pension plans in the U.S., which positively affected results at all Divisions. Profit also included a €44 million net gain at Mobility on the sale of its airfield lighting business. These gains were partly offset by charges related to a project engagement with a local partner in the U.S. and a provision for a supplier-related warranty. Industry also took €78 million in expenses for staff reduction measures in the current period.

     Strong order growth in the third quarter enabled nine-month orders at Industry to reach the level of the prior-year period. Order growth in most Divisions, most notably Industry Automation and OSRAM, were offset by declines at Mobility, which saw lower volume from major orders year-over-year, and at Industry Solutions. Revenue for the first nine months was 4% below the prior-year level due to double-digit declines at Drive Technologies and Industry Solutions resulting from lower demand in their longer-cycle manufacturing and process businesses. These declines were only partly offset by a 15% revenue increase year-over-year at OSRAM. On a geographic basis, the Sector’s order intake in all three regions came in near prior-year levels. Higher revenue in Asia, Australia was more than offset by declines in the Europe, C.I.S., Africa, Middle East region and the Americas.

Divisions		New Orders
		Nine months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Industry Automation(2)(3)			4,698				4,193				12	%			11	%			1	%			0	%
Drive Technologies			5,246				5,071				3	%			3	%			1	%			0	%
Building Technologies(2)			5,111				5,066				1	%			0	%			1	%			0	%
OSRAM			3,429				2,979				15	%			15	%			0	%			0	%
Industry Solutions			4,148				4,823				(14	)%			(15	)%			1	%			0	%
Mobility			4,264				5,012				(15	)%			(15	)%			1	%			(1	)%

Divisions		Revenue
		Nine months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Industry Automation(2)(3)			4,410				4,268				3	%			3	%			1	%			0	%
Drive Technologies			4,946				5,713				(13	)%			(14	)%			1	%			0	%
Building Technologies(2)			4,954				5,185				(4	)%			(5	)%			1	%			0	%
OSRAM			3,429				2,979				15	%			15	%			0	%			0	%
Industry Solutions			4,381				5,117				(14	)%			(15	)%			1	%			0	%
Mobility			4,751				4,696				1	%			1	%			1	%			(1	)%

Divisions		Profit												Profit margin
		Nine months												Nine months
		ended June 30,												ended June 30,
(in millions of €)		2010				2009				% Change				2010				2009
Industry Automation(1)			714				473				51	%			16.2	%			11.1	%
Drive Technologies			573				675				(15	)%			11.6	%			11.8	%
Building Technologies(1)			308				269				14	%			6.2	%			5.2	%
OSRAM			432				108				>200	%			12.6	%			3.6	%
Industry Solutions			158				327				(52	)%			3.6	%			6.4	%
Mobility			399				289				38	%			8.4	%			6.2	%

     Accelerating customer demand during the first three quarters of fiscal 2010 fueled a broad-based increase in orders at Industry Automation year-over-year. Orders grew in all three regions, with the strongest contribution coming from Asia, Australia. Revenue growth lagged behind order development as strong growth in Asia, Australia was largely offset by lower revenue in Europe, C.I.S., Africa, Middle East. Profit rose sharply year-over-year on an improved business mix, stronger capacity utilization and as a consequence of profitability measures. PPA effects related to the acquisition of UGS Corp. were €103 million in the current period compared to €105 million in the first nine months a year earlier.

     Orders rose slightly at Drive Technologies for the first nine months, driven by the Division’s short-cycle businesses and demand from Asia, Australia. Revenue came in 13% below the prior-year level including double-digit declines in the regions Europe, C.I.S., Africa, Middle East and the Americas. Declining revenue and lower capacity utilization led to a 15% decrease in profit year-over-year.

     Building Technologies’ orders came in slightly above the prior-year level due mainly to higher demand in Asia, Australia, whereas revenue declined 4% compared to the prior-year period as higher revenue in Asia, Australia was more than offset by lower revenue in Europe, C.I.S., Africa, Middle East and the Americas. Despite a decline in revenue, cost discipline enabled Building Technologies to increase its profit year-over-year. The Division’s low-voltage business contributed strongly to positive profit development. Nine-month profit included the charge for the supplier-related warranty mentioned above, which was largely offset by the Division’s portion of the pension curtailment gain also mentioned above.

     OSRAM achieved a double-digit increase in nine-month revenue year-over-year, on strong demand in its LED and automotive businesses. A year earlier, these businesses were heavily affected by the economic downturn. Increased capacity utilization, an improved business mix and a streamlined cost structure led to sharply improved profit compared to the prior-year period. Profit in the current period benefited from €23 million of the pension gain mentioned above, while the prior-year period included a positive effect from currency hedging activities not qualifying for hedge accounting.

     Orders and revenue at Industry Solutions both declined 14% compared to the first nine months a year earlier. The sharpest drop came in the Division’s large metal technologies business. Profit declined by more than half year-over-year due in part to lower revenue and reduced capacity utilization. Furthermore, profit in the current period was burdened by €79 million in charges related to a project engagement with a local partner in the U.S. and €39 million in expenses for staff reduction measures.

     Nine-month profit at Mobility improved significantly year-over-year due partly to selective order intake in prior periods and the execution of programs to improve the performance in its project business. Profit also benefited from the €44 million net gain on the sale of the airfield lighting business and from a portion of the pension gain mentioned above. Profit in the prior-year period included a positive €10 million effect related to the settlement of a claim in the rolling stock business. Revenue was up slightly year-over-year on strong growth in Asia, Australia. New orders at Mobility declined year-over-year due to a higher volume from major orders in the nine months of the previous fiscal year, including a large train order in China. As a result, order intake was lower in all regions, particularly in Asia, Australia.

Energy — Three months ended June 30, 2010

Sector		Three months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Profit			925				863				7	%
Profit margin			14.3	%			13.4	%
New orders			8,061				6,849				18	%			12	%			6	%			0	%
Revenue			6,462				6,436				0	%			(5	)%			5	%			0	%

     The Energy Sector was again the top contributor to Total Sectors profit, generating €925 million in profit in the third quarter. The Sector continued to execute well on its substantial order backlog, particularly at Fossil Power Generation, Renewable Energy and Power Transmission. As a result, third-quarter profit was up 7% year-over-year on higher earnings in nearly all Divisions.

     The broad energy market showed signs of improvement, and for the first time in more than a year the Sector posted a quarterly increase in new orders compared to a prior-year period. Major orders played a substantial role in the Sector’s 18% order increase, most notably at Power Transmission, Renewable Energy and Oil & Gas. In addition to organic growth, the Sector’s order total benefited from currency translation effects amounting to six percentage points. On a geographic basis, orders in the current period rose in Europe, C.I.S., Africa, Middle East and the Americas, and declined in Asia, Australia. Third-quarter revenue remained flat year-over-year, due in part to a positive currency translation effect that added five percentage points to reported revenue. This result was due primarily to lower order intake in prior periods. Revenue was higher in the Americas and came in lower in Asia, Australia and Europe, C.I.S., Africa, Middle East. Energy’s book-to-bill ratio was 1.25 for the quarter. In combination with positive currency translation effects, this took the Sector’s order backlog up to €54 billion.

Divisions		New Orders
		Three months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Fossil Power Generation			2,097				2,447				(14	)%			(20	)%			5	%			0	%
Renewable Energy			2,271				1,802				26	%			22	%			4	%			0	%
Oil & Gas			1,268				807				57	%			48	%			10	%			0	%
Power Transmission			1,787				1,215				47	%			39	%			8	%			0	%
Power Distribution			768				739				4	%			(2	)%			6	%			0	%

Divisions		Revenue
		Three months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Fossil Power Generation			2,348				2,397				(2	)%			(5	)%			3	%			0	%
Renewable Energy			953				761				25	%			16	%			7	%			3	%
Oil & Gas			998				1,098				(9	)%			(15	)%			6	%			0	%
Power Transmission			1,582				1,532				3	%			(3	)%			6	%			0	%
Power Distribution			734				770				(5	)%			(10	)%			6	%			0	%

Divisions		Profit												Profit margin
		Three months												Three months
		ended June 30,												ended June 30,
(in millions of €)		2010				2009				% Change				2010				2009
Fossil Power Generation			379				347				9	%			16.2	%			14.5	%
Renewable Energy			129				100				29	%			13.5	%			13.1	%
Oil & Gas			108				132				(18	)%			10.8	%			12.0	%
Power Transmission			205				183				12	%			12.9	%			11.9	%
Power Distribution			102				97				5	%			13.8	%			12.6	%

     Fossil Power Generation led all Siemens Divisions with €379 million in profit, an increase of 9% compared to the third quarter a year earlier. The Division continued to execute well in its project business and benefited from a more favorable revenue mix. While the fossil power generation market remained challenging, the Division’s 14% decline in new orders was smaller than the declines in recent quarters. Third-quarter revenue came in only slightly lower year-over-year, in part benefiting from Fossil Power Generation’s large order backlog.

     Renewable Energy delivered a strong performance in the third quarter, reaching new highs for profit, revenue and orders. Third-quarter profit climbed 29% year-over-year, to €129 million, on a 25% rise in revenue. The Division demonstrated its global leadership in the off-shore wind-farm market by winning a number of major orders in Europe, and also took in its largest-ever onshore order. New orders overall came in at €2.271 billion, a 26% increase compared to the third quarter a year earlier.

     Oil & Gas posted third-quarter profit of €108 million, a volume-driven decline compared to the prior-year period. The Division’s 9% revenue decline was strongly influenced by a drop in orders in prior periods. Against a low basis of comparison, third-quarter orders came in higher year-over-year due in part to a higher volume from major orders.

     Power Transmission increased its third-quarter profit to €205 million on higher revenue and strong project performance. Orders surged 47% on the strength of two large contract wins for grid access to off-shore wind-farms.

     Third-quarter profit at Power Distribution rose to €102 million on a more favorable revenue mix, even as overall revenue came in lower due to weak order development during prior periods. The power distribution market continued to show signs of stabilization, and third-quarter orders came in 4% higher year-over-year.

Energy — Nine months ended June 30, 2010

Sector		Nine months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Profit			2,608				2,437				7	%
Profit margin			14.3	%			12.8	%
New orders			21,061				23,589				(11	)%			(11	)%			1	%			0	%
Revenue			18,260				19,032				(4	)%			(5	)%			1	%			1	%

     The Energy Sector turned in a strong performance in the first nine months of fiscal 2010, increasing Sector profit 7% year-over-year to €2.608 billion. Profit growth year-over-year was driven by Fossil Power Generation.

     While market conditions remain challenging in the Energy Sector, the overall energy market showed signs of improvement in recent months. In this environment, nine-month orders for Energy came in 11% below the prior-year period. This was primarily due to a decline in orders at Fossil Power Generation, the Sector’s largest Division by volume. In contrast, strong order growth in the third quarter led to higher nine-month orders intake at Renewable Energy, Oil & Gas and Power Transmission. On a geographic basis, orders rose in the Americas and declined in Europe, C.I.S., Africa, Middle East and in Asia, Australia. Revenue in the Sector was 4% lower in the first nine months compared to the same period a year earlier, including declines in four of the Sector’s five Divisions and in all regions. The Sector’s book-to-bill ratio was 1.15 in the current nine-month period.

Divisions		New Orders
		Nine months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Fossil Power Generation			6,387				9,919				(36	)%			(36	)%			0	%			0	%
Renewable Energy			4,475				4,037				11	%			11	%			0	%			0	%
Oil & Gas			3,477				3,087				13	%			10	%			3	%			0	%
Power Transmission			4,922				4,724				4	%			3	%			1	%			0	%
Power Distribution			2,273				2,353				(3	)%			(5	)%			1	%			0	%

Divisions		Revenue
		Nine months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Fossil Power Generation			7,051				7,147				(1	)%			(1	)%			0	%			0	%
Renewable Energy			2,295				2,274				1	%			(4	)%			1	%			4	%
Oil & Gas			2,975				3,186				(7	)%			(9	)%			3	%			0	%
Power Transmission			4,264				4,535				(6	)%			(7	)%			1	%			0	%
Power Distribution			2,096				2,421				(13	)%			(15	)%			1	%			0	%

Divisions		Profit												Profit margin
		Nine months												Nine months
		ended June 30,												ended June 30,
(in millions of €)		2010				2009				% Change				2010				2009
Fossil Power Generation			1,127				948				19	%			16.0	%			13.3	%
Renewable Energy			265				306				(13	)%			11.5	%			13.5	%
Oil & Gas			361				359				1	%			12.1	%			11.3	%
Power Transmission			536				503				7	%			12.6	%			11.1	%
Power Distribution			298				310				(4	)%			14.2	%			12.8	%

     Fossil Power Generation delivered substantially higher profit year-over-year, combining strong project execution and a more favorable revenue mix, including a higher contribution from the service business. As a result, Fossil Power Generation led all Siemens Divisions with €1.127 billion in profit for the first nine months of fiscal 2010, despite charges of €59 million for capacity adjustments related to a shift of production capacity within the Americas region, partly offset by the Division’s share in the previously disclosed pension curtailment gain in the U.S., both in the second quarter. In contrast, order development was heavily influenced by market contraction, as the Division reported a 36% decrease in order intake year-over-year, including a substantially lower volume from major orders. Fossil Power Generation’s strong order backlog reduced the effect of market conditions on revenue for the first nine months, which came in only slightly below the prior-year period.

     Profit at Renewable Energy declined 13% compared to the first nine months of fiscal 2009, due primarily to a volume-driven drop in the first quarter of the current fiscal year. The current nine-month period also includes transaction and integration costs related to consolidation of the solar company Solel. Nine-month revenue came in just above the prior-year level, as revenue decline in the first quarter was offset by strong sales development in the following two quarters. The Division took in large wind-farm orders in both periods under review, and order intake was up 11% year-over-year.

     Profit at Oil & Gas for the first nine months came in at €361 million, nearly unchanged from €359 million a year earlier, despite a 7% decrease in revenues. This was due in part to a more favorable revenue mix including a strong contribution from the service business. In uncertain market conditions, order intake rose 13% year-over-year, including a higher volume from major orders.

     Power Transmission posted a year-over-year increase in nine-month profit, to €536 million. In addition to strong project performance in the current period, the increase benefited from a positive swing in effects from commodity hedging. Revenue for the current period came in 6% lower than in the first nine months a year earlier, due in part to a generally declining order trend in fiscal 2009. The Division’s order intake rose 4% year-over-year.

     Power Distribution contributed profit of €298 million in the first nine months of fiscal 2010, down from €310 million in the prior-year period, due primarily to a volume-driven profit decline in the Division’s medium voltage business. Overall revenue came in 13% below the prior-year level for the Division, partly as a consequence of declining order intake throughout fiscal 2009. Orders for the first nine months of fiscal 2010 came in lower compared to the prior-year period, even though orders rose year-over-year in both the second and third quarters.

Healthcare — Three months ended June 30, 2010

Sector		Three months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Profit			506				270				87	%
Profit margin			16.0	%			9.4	%
New orders			3,260				2,772				18	%			10	%			7	%			0	%
Revenue			3,152				2,865				10	%			4	%			7	%			0	%

     The Healthcare Sector showed strong growth in profit, revenue and orders in a more favorable market environment. Third-quarter profit rose to €506 million on higher revenue and strong execution, including continued cost discipline. For comparison, profit in the same period a year earlier was burdened by €128 million in charges at the Workflow & Solutions Division while the current period benefited from a gain of €40 million, taken at the Sector level, as the Sector ceased to consolidate a subsidiary due to loss of control. PPA effects related to past acquisitions at Diagnostics were €46 million in the third quarter. In addition, Healthcare recorded €18 million of integration costs associated with the next phase of integration activities at Diagnostics. In the same quarter a year earlier, PPA effects and integration costs totaled €52 million.

     Third-quarter orders for Healthcare climbed 18% and revenue rose 10%. Orders came in higher in all three geographic regions compared to the prior-year quarter, while revenue rose in Asia, Australia and the Americas. In addition to organic growth, the Sector’s order and revenue totals benefited from currency translation effects amounting to seven percentage points for orders and seven percentage points for revenue. Healthcare’s book-to-bill ratio was 1.03 for the quarter, and its order backlog was €7 billion.

Divisions		New Orders
		Three months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Imaging & IT			1,920				1,589				21	%			13	%			8	%			0	%
Workflow & Solutions			432				345				25	%			19	%			6	%			0	%
Diagnostics			964				891				8	%			2	%			7	%			0	%

Divisions		Revenue
		Three months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Imaging & IT			1,868				1,688				11	%			4	%			7	%			0	%
Workflow & Solutions			382				333				15	%			8	%			6	%			0	%
Diagnostics			959				887				8	%			1	%			7	%			0	%

Divisions		Profit												Profit margin
		Three months												Three months
		ended June 30,												ended June 30,
(in millions of €)		2010				2009				% Change				2010				2009
Imaging & IT			329				277				19	%			17.6	%			16.4	%
Workflow & Solutions			22				(107	)			—				5.8	%			(32.1	)%
Diagnostics			121				104				17	%			12.6	%			11.7	%

     Imaging & IT delivered strong profit growth and double-digit increases in revenue and orders compared to the third quarter a year ago. Profit climbed to €329 million on higher revenue and structural cost savings. Third-quarter revenue came in 11% higher year-over-year, and orders climbed 21%, with most business units recording increases in both revenue and orders. Growth was driven by strong demand in Asia, Australia, particularly including China, and in the Americas, which saw rapid growth in Brazil from a small base. On an organic basis, revenue was up 4% and orders rose 13% compared to the prior-year quarter.

     Workflow & Solutions contributed €22 million to Sector profit compared to a loss of €107 million in the prior-year period, when the Division took the €128 million in project charges mentioned earlier. Double-digit order growth included a major order for hospital equipment in Spain.

     Revenue at Diagnostics rose 8% compared to the third quarter a year earlier, or 1% on an organic basis, excluding currency translation effects. The increase came from the Americas and Asia, Australia, particularly including double-digit growth in Brazil and China from a small base. Revenue declined in Europe, C.I.S., Africa, Middle East. Profit rose to €121 million despite an increase in total PPA effects and integration costs. In the third quarter a year earlier, these impacts were €45 million and €7 million, respectively. In the current period, PPA effects were €46 million, and the Division also recorded €18 million in costs for integration activities.

Healthcare — Nine months ended June 30, 2010

Sector		Nine months
		ended June 30,								% Change								therein
(in millions of €)		2010				2009				Actual				Adjusted(1)				Currency				Portfolio
Profit			1,521				967				57	%
Profit margin			17.0	%			11.0	%
New orders			9,075				8,619				5	%			5	%			1	%			0	%
Revenue			8,951				8,785				2	%			1	%			1	%			0	%