Form 6-K
Table of Contents

 

 

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

May 2, 2013

Commission File Number: 1-15174

Siemens Aktiengesellschaft

(Translation of registrant’s name into English)

Wittelsbacherplatz 2

80333 Munich

Federal Republic of Germany

(Address of principal executive offices)

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

Form 20-F x Form 40-F ¨

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 ¨ No x

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 ¨ No x

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

Yes ¨ No x

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

 

 

 


Table of Contents
Key figures   

Earnings Release

  

Earnings Release Consolidated Financial Statements (preliminary and unaudited)

  

SUPPLEMENTAL DATA:

  

Additional Information (I) (preliminary and unaudited)

  

Additional Information (II) (preliminary and unaudited)

  

Additional Information (III) (preliminary and unaudited)

  

Signature page

  


Table of Contents

LOGO

KEY FIGURES Q2 AND FIRST SIX MONTHS OF FISCAL 20131,2

preliminary and unaudited; in millions of , except where otherwise stated

 

LOGO

                        % Change     1st six months           % Change  
  VOLUME   Q2 2013     Q2 2012     Actual     Adjusted3     2013     2012     Actual    

Adjusted3

 
  Continuing operations                                                
 

Orders

    21,451        17,880        20     20     40,843        37,689        8     7
 

Revenue

    18,011        19,297        (7 )%      (6 )%      36,157        37,199        (3 )%      (4 )% 
                 
                        1st six months        
  EARNINGS   Q2 2013     Q2 2012     % Change     2013     2012     % Change  
  Total Sectors            
 

Adjusted EBITDA

    1,881        2,412        (22)%        4,032        4,436        (9)%   
 

Total Sectors profit

    1,374        1,929        (29)%        2,915        3,530        (17)%   
 

in % of revenue (Total Sectors)

    7.5     9.9         8.0     9.4  
 

Continuing operations

                     
 

Adjusted EBITDA

    1,970        2,635        (25)%        4,213        4,743        (11)%   
 

Income from continuing operations

    982        979        0%        2,127        2,265        (6)%   
 

Basic earnings per share (in )4

    1.14        1.08        6%        2.48        2.53        (2)%   
 

Continuing and discontinued operations

                     
 

Net income

    1,030        938        10%        2,243        2,322        (3)%   
 

Basic earnings per share (in )4

    1.20        1.03        16%        2.61        2.59        1%   
                 
  CAPITAL EFFICIENCY  

Q2 2013

    Q2 2012    

1st six months

2013

    1st six months
2012
 
 

Continuing operations

             
 

Return on capital employed (ROCE) (adjusted)

    12.7%        13.3%        13.9%        15.7%   
                 
  CASH PERFORMANCE   Q2 2013     Q2 2012    

1st six months

2013

   

1st six months

2012

 
 

Continuing operations

             
 

Free cash flow

    1,375        532        (58)        (482)   
 

Cash conversion rate

    1.40        0.54        (0.03)        (0.21)   
 

Continuing and discontinued operations

             
 

Free cash flow

    1,335        528        (61)        (676)   
 

Cash conversion rate

    1.30        0.56        (0.03)        (0.29)   
                 
  LIQUIDITY AND CAPITAL
STRUCTURE
  March 31, 2013     September 30, 2012  
 

Cash and cash equivalents

    7,892        10,891   
 

Total equity (Shareholders of Siemens AG)

    26,071        30,855   
 

Net debt

    14,509        9,292   
 

Adjusted industrial net debt

    7,728        2,271   
                 
   

EMPLOYEES (IN
THOUSANDS)

  March 31, 2013     September 30, 2012  
    Continuing
operations
    Total6    

Continuing

operations

    Total6  
               
 

Employees

    366        405        370        410   
  Germany     119        129        119        130   
  Outside Germany     247        275        251        280   

 

1 Orders; Adjusted or organic growth rates of revenue and orders; Total Sectors profit; ROCE (adjusted); Free cash flow and cash conversion rate; Adjusted EBITDA; Net debt and adjusted industrial net debt are or may be non-GAAP financial measures. Definitions of these supplemental financial measures, a discussion of the most directly comparable IFRS financial measures, information regarding the usefulness of Siemens’ supplemental financial measures, the limitations associated with these measures and reconciliations to the most comparable IFRS financial measures are available on our Investor Relations website under LOGO WWW.SIEMENS.COM/NONGAAP

 

2 January 1 — March 31, 2013 and October 1, 2012 — March 31, 2013.

 

3 Adjusted for portfolio and currency translation effects.

 

4 Basic earnings per share — attributable to shareholders of Siemens AG. For fiscal 2013 and 2012 weighted average shares outstanding (basic) (in thousands) for the second quarter amounted to 843,504 and 877,749 and for the first six months to 844,516 and 876,585 shares, respectively.

 

5 Calculated by dividing adjusted industrial net debt as of March 31, 2013 and 2012 by annualized adjusted EBITDA.

 

6 Continuing and discontinued operations.


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LOGO

Earnings Release Q2 2013

January 1 to March 31, 2013

Munich, Germany, May 2, 2013

Mixed Picture, Focus on Execution

Lower Revenue & Total Sectors profit

Double-digit order growth, EPS up 17%

 

Peter Löscher, President and Chief Executive Officer of Siemens AG

 

LOGO   

“Results for the second quarter show a mixed picture. While we were able to clearly increase orders, we still have challenges regarding revenue and profit. Even more we’re focusing on the factors that lie in our own hands:

we’re rigorously executing our company-wide Siemens 2014 program.”

Financial Highlights:*

 

 

Orders for the second quarter rose 20% year-over-year, to 21.451 billion, due primarily to large orders. The book-to-bill ratio was 1.19, and Siemens’ order backlog increased to 101 billion at the end of the quarter.

 

 

Revenue for the second quarter was 18.011 billion, 7% below the prior-year level.

 

 

Total Sectors Profit declined to 1.374 billion due primarily to lower profit in Industry and Infrastructure & Cities.

 

 

Income from continuing operations increased slightly to 982 million. For comparison, the prior-year period included an equity investment loss of 640  million related to NSN.

 

 

Net income improved to 1.030 billion, including a positive contribution from discontinued operations. Corresponding basic EPS was 1.20, up from 1.03 in the prior-year period, benefiting from share buybacks between the periods under review.

 

 

Free cash flow from continuing operations improved to 1.375 billion from 532 million in the second quarter a year ago.

 

* At the end of the second quarter Siemens’ solar business no longer fulfilled the conditions to be classified as discontinued operations according to IFRS. It was therefore reclassified to continuing operations and its results are reported within the Energy Sector. Results for prior periods are presented on a comparable basis. Siemens still intends to exit the solar business.
 

 

Table of Contents   
Siemens      2-4   

Sectors, Equity Investments,

Financial Services

     5-12   

Corporate Activities, Solar business

and OSRAM

     13   
Outlook      13   

Notes and Forward–

Looking Statements

     14   

Media Relations:

Alexander Becker

Phone: +49 89 636-36558

E-mail: becker.alexander@siemens.com

Oliver Santen

Phone: +49 89 636-36669

E-mail: oliver.santen@siemens.com

Siemens AG,

80333 Munich, Germany

 
 


Table of Contents

 

Siemens      2

Orders and Revenue

 

Double-digit order growth, book to bill above 1

While macroeconomic conditions remained challenging in the second quarter, Siemens won major long-cycle contracts for wind power and trains that drove a 20% increase in orders year-over-year. In contrast, revenue came in 7% lower compared to the prior-year period. On a comparable basis, excluding currency translation and portfolio effects, revenue was 6% lower. The book-to-bill ratio for Siemens was 1.19, the order backlog (defined as the sum of the order backlogs of the Sectors) increased to 101 billion.

Broad-based revenue decline

Weaker investment sentiment in recent quarters was evident in second-quarter revenue, which declined in all Sectors and reporting regions. On a regional basis, revenue declined significantly in the Americas and moderately in the region comprising Europe, the Commonwealth of Independent States, Africa and the Middle East (Europe/CAME) and in the Asia, Australia region. Emerging markets on a global basis declined 4% year-over-year, and accounted for 5.938 billion, or 33%, of total revenue for the second quarter.

Orders climb on large contract wins in Europe

The Energy and Infrastructure & Cities Sectors both won a pair of major orders in Europe/CAME that drove their double-digit order increases compared to the prior-year period. Healthcare showed moderate order growth year-over-year, while orders fell at Industry on weaker demand for its short-cycle businesses and renewable energy offerings. On a geographic basis, Europe/CAME and the Americas showed double-digit increases due to higher volumes from large orders. Emerging markets on a global basis grew faster than orders overall, at 24% year-over-year, and accounted for 6.795 billion, or 32%, of total orders for the quarter.

 

 

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Siemens      3

Income and Profit

 

Profit declines at Industry, Infrastructure & Cities

Total Sectors profit declined to 1.374 billion from 1.929 billion in the second quarter a year earlier. Industry profit declined to 350 million from 662  million a year earlier, due mainly to more challenging market conditions for its short-cycle businesses. Profit in Infrastructure & Cities fell to 27 million from 270  million a year earlier, due largely to charges of 161 million related to high-speed rail projects. Energy delivered 551 million in profit, down 4% compared to the prior-year period. Charges related to grid connection projects totaled 84 million in the second quarter compared to 278 million a year earlier. Healthcare contributed 445 million in profit, up 5% year-over-year.

Total Sectors profit included charges of 104  million for the “Siemens 2014” productivity improvement program: 49 million in Industry, 23  million in Infrastructure & Cities, 20 million in Energy, and 13 million in Healthcare. The program is expected to generate substantially higher charges in the second half of the fiscal year.

Stable income from

continuing operations

Income from continuing operations of 982 million was slightly above the prior-year level, as lower Total Sectors profit was offset by improvements outside the Sectors. Above all, Equity Investments posted a profit of 8 million in the current quarter compared to a loss of 594 million a year earlier. Basic EPS from continuing operations rose to 1.14 from 1.08 a year earlier, benefiting from share buybacks between the periods under review.

Discontinued operations turns positive

Second-quarter net income was up 10%, at 1.030 billion. Corresponding EPS rose 17%, to 1.20 from 1.03 in the prior-year period, due to share buybacks as mentioned above. The increase in net income was due primarily to discontinued operations, which contributed 48 million in the current period. A year earlier, discontinued operations posted a loss of 41 million, due mainly to a burden of 142 million (pretax) from a settlement related to Greece. Income from discontinued operations related to Siemens IT Solutions and Services in the current period was a negative 9 million compared to a positive 42 million a year earlier. Income from discontinued operations related to OSRAM rose to 57 million, up from 25  million a year ago. OSRAM reported a 3% decline in revenue compared to the second quarter a year ago (0% decline on an organic basis). Additional information regarding OSRAM is on page 13.

 

 

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Siemens      4

Cash, Return on Capital Employed (ROCE), Pension Funded Status

 

Strong improvement in Free cash flow

Free cash flow from continuing operations was 1.375 billion, up strongly from 532  million in the same period a year ago, due primarily to an improved cash performance at the Sector level. The main component of Free cash flow from continuing operations in the second quarter was Income from continuing operations. Cash inflows related to the decrease in operating net working capital were 0.4 billion, including customer payments received particularly in Energy.

Siemens again took advantage of extraordinarily favorable conditions to raise new long-term debt. The total amount raised was 3.5 billion, denominated in both euros and the U.S. dollar, with maturities ranging from 2018 to 2028. The new debt raised was partly offset by the redemption of bonds totaling 2 billion. Another major cash outflow during the second quarter was 2.5 billion for dividend payments. All these cash flows were financing activities and therefore not part of Free cash flow.

Pension plan underfunding

remains largely unchanged

The estimated underfunding of Siemens’ pension plans as of March 31, 2013 amounted to 9.0 billion, compared to an underfunding of 8.9 billion at the end of the first quarter.

 

 

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Sectors      5

Energy Sector

 

Profit near prior-year level,

double-digit order growth

Energy reported second-quarter profit of 551  million, down 4% year-over-year due mainly to lower revenue. Power Transmission narrowed its loss due largely to substantially reduced project charges. Fossil Power Generation contributed lower earnings than a year earlier, but still accounted for most of the Sector’s profit and was the highest profit performer among all Siemens Divisions. Profit at Wind Power fell compared to the strong second quarter a year ago, while earnings at Oil & Gas came in close to the prior-year level. Siemens’ solar business was reclassified from discontinued operations during the second quarter, and its results are reported within Energy. The business posted a loss of 21 million, nearly unchanged from the second quarter a year earlier. Additional information regarding the solar business is on page 13. Energy recorded 20 million in charges under the “Siemens 2014” productivity program.

Second-quarter revenue declined 9%, including lower revenue at Fossil Power Generation and Wind Power. On a geographic basis, lower revenue in the current period was due primarily to the Americas region, where Wind Power orders were strongly influenced in the second half of calendar 2012 by uncertainties in the U.S. market.

Orders for the quarter jumped 46% year-over-year, due mainly to two large offshore wind-farm orders at Wind Power. Order intake remained close to prior-year levels at Fossil Power Generation and Oil & Gas, while lower orders at Power Transmission were influenced by more selective order intake. On a regional basis, orders rose sharply in Europe/CAME and the Americas but fell in Asia, Australia. The book-to-bill ratio for Energy was 1.35, and its order backlog was 58 billion at the end of the quarter.

Lower revenue reduces profit contribution

Second-quarter profit at Fossil Power Generation came in at 431 million, including a strong contribution from the service business. The main factor in the Division’s profit decline year-over-year was significantly lower revenue, resulting mainly from declining order intake for turnkey projects in prior quarters. Orders for the current period were up 4% year-over-year, with increases in the Americas and Europe/CAME more than offsetting lower orders in Asia, Australia.

Sharp order growth, revenue and profit down

Second-quarter profit at Wind Power was 53  million, down from 130  million in a particularly strong quarter for revenue-driven profit a year earlier. Key factors in the change included lower revenue and a less favorable revenue mix. Revenue declined 19% due to the onshore wind farm business, where the U.S is the largest national market for Wind Power. New projects in the U.S. were halted or postponed in late 2012 due to uncertainty regarding continuation of production tax incentives. The resulting order gap led to a steep drop in second-quarter revenue in the Americas region compared to a year earlier. In contrast, orders in the current period climbed sharply due mainly to the off-shore wind farm business, which typically has longer lead times between orders and revenue recognition. The Europe/CAME region posted the two large orders mentioned above as well as a major service contract in Germany, and led strong order growth for all three reporting regions.

 

 

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Sectors      6

 

 

Stable profit contribution

Second-quarter profit at Oil & Gas was 125 million, compared to 131  million in the same period a year earlier. Revenue and orders for the Division were close to prior-year levels.

Grid connection charges fall, though challenges remain

Power Transmission reported a loss of 49  million, compared to a loss of 169 million in the same quarter a year earlier. The improvement is due primarily to substantially lower charges related mainly to grid connections to offshore-wind farms, totaling 84 million in the current period. A year earlier, these charges totaled 278  million, partly offset by the release

of a provision of 64 million related to a successful project completion. Second-quarter revenue for the Division was close to the prior-year level, while orders came in 9% lower in part due to more selective order intake in Europe/CAME. The Division expects continuing challenges in coming quarters, including the transport and installation of platforms for grid connections to certain offshore wind farms.

 

 

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Sectors      7

Healthcare Sector

 

 

Order growth, continued strong profit performance

Second-quarter profit in the Healthcare Sector rose to 445 million, due to improvements in cost position resulting from the Sector’s ongoing Agenda 2013 initiative as well as lower charges associated with this initiative. These charges totaled 13  million in the current period compared to 38 million in the prior-year period. Profit development improved despite lower revenue and an excise tax on medical devices sold in the U.S., which was introduced on January 1, 2013 and affected most businesses in the Sector.

Profit at Diagnostics rose to 84 million from 67  million in the prior-year period. The increase was due in part to Agenda 2013, including both improvements in cost position and lower charges associated with the initiative compared to the prior-year period. These charges declined to 8 million from 20  million a year ago. Purchase price allocation (PPA) effects related to past acquisitions at Diagnostics were 42 million in the second quarter. A year earlier, Diagnostics recorded 43 million in PPA effects.

Second-quarter revenue for Healthcare was down 2% year-over-year, on declines at most businesses. Orders were up 3%, driven by the Sector’s imaging businesses. On a regional basis, slight growth in Asia, Australia did not offset lower revenue in Europe/CAME and the Americas. Significant order growth in the region Asia, Australia was highlighted by double-digit increases in China. The book-to-bill ratio for the Sector was 1.02, and Healthcare’s order backlog was 7 billion at the end of the second quarter.

The Diagnostics business saw a slight revenue decline to 963 million from 976  million a year earlier. On a regional basis, Diagnostics revenue followed the same pattern as the Sector.

 

 

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Sectors      8

Industry Sector

 

 

Challenging market conditions continue

Industry continued to face more challenging market conditions compared to the prior year, affecting results for both short-cycle businesses and renewable energy offerings. Due mainly to lower capacity utilization and a less favorable business mix, profit at Industry declined to 350  million in the second quarter, well below 662 million a year earlier. Profit was also burdened by 49 million in charges under the “Siemens 2014” productivity program, with the majority of the charges coming at Drive Technologies.

Revenue and orders were down 9% and 10% respectively on declines in both Divisions and in the metals technologies business. On a geographic basis, revenue was lower in all three regions including double-digit declines in Asia, Australia and the Americas. The decline in orders was spread more evenly among the regions but was particularly evident in the important Chinese and German markets. The Sector’s book-to-bill ratio was 1.00 and its order backlog at the end of the quarter was 11 billion.

 

 

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Sectors      9

 

 

Lower revenue, M&A and mix

effects take profit lower

Profit at Industry Automation declined sharply year-over-year, to 201  million, as lower sales reduced capacity utilization and resulted in a less favorable revenue mix compared to the prior-year period. Profit also included PPA effects associated with the integration of LMS International NV (LMS) beginning in the current quarter. Revenue and orders both fell 7% including declines in most of the Division’s businesses. A notable exception was the Division’s industrial IT and software business, which benefited from recent acquisitions including LMS. PPA effects related to the acquisition of UGS Corp. in fiscal 2007 were 38 million in the current quarter, compared to 36 million a year earlier. PPA effects related to long-lived assets from the acquisition of LMS were 11 million in the current quarter. Effects from deferred revenue adjustments and inventory step-ups related to LMS totaled an additional 14 million. Based on current assumptions, similar amounts are expected in the final two quarters of fiscal 2013.

Short-cycle businesses

burden profit

Second-quarter profit at Drive Technologies fell to 147  million, due mainly to profit declines in the Division’s higher-margin short-cycle businesses and offerings for renewable energy. Both saw double-digit declines in revenue year-over-year. For the Division overall, second-quarter revenue was down 10% from the prior-year level, including double-digit declines in the Americas and Asia, Australia. Orders came in 11% lower, due mainly to weaker demand in Europe/CAME.

 

 

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Sectors      10

Infrastructure & Cities Sector

 

 

Profit falls on project charges, weaker revenue

Profit at Infrastructure & Cities declined to 27 million in the second quarter from 270 million in the same period a year earlier. The Sector recorded project charges of 161 million related to high-speed trains, and took charges of 23 million related to the “Siemens 2014” productivity program. Profit development was held back also by a 5% decline in revenue compared to the prior-year period. Both Europe/CAME and the Americas

posted lower revenue year-over-year, more than offsetting higher sales in the Asia, Australia region. In contrast, orders rose substantially year-over-year, driven by major orders in Europe/CAME. The Sector’s book-to-bill ratio was 1.28 and its order backlog at the end of the quarter was 25 billion.

 

 

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Sectors      11

 

Rolling stock charges burden profitability

Transportation & Logistics posted a loss of 156 million compared to profit of 75 million a year earlier. This decline was due mainly to the 161 million in charges mentioned above, which primarily involve delays related to receiving certification for new trains. In addition, Transportation & Logistics’ business mix was less favorable due to lower margins associated

with large long-term contracts from prior periods and revenue declined 7% year-over-year. Order intake in the current period rose sharply, benefiting from two major rolling stock orders in Europe/CAME. The Transportation & Logistics business expects continuing challenges in coming quarters, related to fulfillment of contracts for high-speed rail projects.

After the end of the second quarter of fiscal 2013, the European Commission authorized Siemens’ acquisition of Invensys Rail. The transaction is expected to close in the third quarter, at the beginning of May.

Stable profit and revenue

Power Grid Solutions & Products posted 98 million in second-quarter profit, near the prior-year level. While earnings from the smart grid solutions business rose on a more favorable business mix, profit from the low and medium voltage business declined compared to the prior-year period. Revenue came in slightly below the prior-year level, with revenue growth in the Americas partly offsetting a decline in Europe/CAME. Orders were down 6% year-over-year, including lower demand in the Americas and Europe/CAME.

Profit falls on lower revenue

Second-quarter profit at Building Technologies declined to 59 million from 77 million a year earlier, driven mainly by a 5% decline in revenue. Orders for the second quarter were nearly level year-over-year. On a geographic basis, revenue was lower in all three reporting regions. Orders in the Americas region rose, including a large order for an energy efficiency project in the U.S. while orders in Asia, Australia were lower year-over-year.

 

 

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Equity Investments and Financial Services      12

 

Equity Investments and Financial Services

Loss from NSN sharply reduced

 

Profit from Equity Investments in the second quarter was 8  million compared to a loss of 594 million a year earlier. This improvement was due mainly to a substantially smaller loss related to Siemens’ share in Nokia Siemens Networks B.V. (NSN). The loss was 62 million in the current quarter compared to a loss of 640 million in the prior-year quarter. NSN reported to

Siemens that in the current quarter it took 129 million in restructuring charges and other associated items, including net charges related to country and contract exits. Restructuring charges and other associated items totaled 772  million in the second quarter a year earlier. Results from equity investments are expected to be volatile in coming quarters.

 

 

Sharp profit increase at Financial Services

Financial Services (SFS) continued to execute its growth strategy. Higher total assets year-over-year helped generate a higher interest result compared to the second quarter a year ago. For comparison, the prior-year period included burdens on profit related to certain activities in the U.S.

As a result, profit (defined as income before income taxes) rose to 113 million from 74 million in the prior-year period. Total assets rose to 17.872 billion, a moderate increase from the level at the beginning of the fiscal year.

 

 

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Corporate Activities      13

 

Corporate Activities

Corporate items and pensions

Corporate items and pensions reported a loss of 153 million in the second quarter compared to a positive 12 million in the same period a year earlier. The loss at Corporate items was 46 million, compared to a positive 101 million in the same quarter a year earlier. The prior-year period included positive effects totaling 95 million related to legal and regulatory matters. Centrally carried pension expense totaled 106  million in the second quarter, compared to 89 million in the prior-year period.

 

Solar business

Solar business reclassified

as continuing operations

At the end of the second quarter of fiscal 2013, Siemens’ solar business no longer fulfilled the conditions to be classified as discontinued operations according to IFRS. The business therefore was reclassified to continuing operations and is reported within the Energy Sector. Prior-period results are presented on a comparable basis.

In fiscal 2012, orders and revenue of the business were 50 million and 199  million, respectively; it posted a pre-tax loss of 259 million. In the first quarter of fiscal 2013, the business recorded a pre-tax loss of 157  million, which included an impairment charge of 115 million. In the second quarter of fiscal 2013, the pre-tax loss amounted to 21 million.

Siemens still intends to exit the solar business, and expects a total negative impact on income from continuing operations of approximately 0.3 billion from this portfolio matter in fiscal 2013.

OSRAM

OSRAM spin-off

At the Annual Shareholders’ Meeting of Siemens AG on January 23, 2013, Siemens’ shareholders approved the previously proposed spin-off of OSRAM. Siemens plans to retain a 17.0% stake in OSRAM after the spin-off and will additionally contribute a 2.5% stake to the Siemens Pension Trust e.V. Based on the shareholders’ approval Siemens recognized a spin-off liability amounting to 2.6 billion. The spin-off liability reflects 80.5% of the fair value of OSRAM and reduces retained earnings at the same amount.

During the second quarter of fiscal 2013, an action for annulment and voidance was brought against the OSRAM spin-off resolution of the Annual Shareholders’ Meeting, blocking its registration into the German Commercial registers in Berlin and Munich. As part of a so-called judicial release procedure, Siemens filed a motion with the Munich Higher Regional Court to remove the blocking. After the end of the second quarter, the Court approved Siemens’ motion. The Company is continuing to take appropriate steps to complete the spin-off as approved and expects a public listing of OSRAM Licht AG in July 2013.

 

 

 

Outlook

In fiscal 2013, Siemens is implementing “Siemens 2014,” a company-wide program supporting our One Siemens framework for sustainable value creation. The goal of the program is to raise our Total Sectors profit margin to at least 12% by fiscal 2014.

For fiscal 2013, we confirm our expectations of moderate organic order growth. With continuing challenges for our businesses whose results react strongly to short-term changes in the economic environment, we now anticipate a moderate decline in revenue on an organic basis compared to the prior year. Charges associated with the Siemens 2014 program in the Sectors are expected to total up to 0.9 billion

for the full fiscal year. Given these developments and financial results for the first half, we expect income from continuing operations in fiscal 2013 to approach the low end of our original expectation, 4.5 billion, before impacts related to legal and regulatory matters and significant portfolio effects which we expect to burden income by up to 0.5 billion due primarily to the solar business.

 


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Notes and Forward-Looking Statements      14

 

Notes and Forward-Looking Statements

 

All figures are preliminary and unaudited.

Financial Publications are available for download at: www.siemens.com/ir g Publications & Events.

This document includes supplemental financial measures that are or may be non-GAAP financial measures. Orders and order backlog; adjusted or organic growth rates of revenue and orders; book-to-bill ratio; Total Sectors profit; return on equity (after tax), or ROE (after tax); return on capital employed (adjusted), or ROCE (adjusted); Free cash flow, or FCF; cash conversion rate, or CCR; adjusted EBITDA; adjusted EBIT; adjusted EBITDA margins, earnings effects from purchase price allocation, or PPA effects; net debt and adjusted industrial net debt are or may be such non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation as alternatives to measures of Siemens’ financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements.

Other companies that report or describe similarly titled financial measures may calculate them differently. Definitions of these supplemental financial measures, a discussion of the most directly comparable IFRS financial measures, information regarding the usefulness of Siemens’ supplemental financial measures, the limitations associated with these measures and reconciliations to the most comparable IFRS financial measures are available on Siemens’ Investor Relations website at www.siemens.com/nonGAAP. For additional information, see supplemental financial measures and the related discussion in Siemens’ most recent annual report on Form 20-F, which can be found on our Investor Relations website or via the EDGAR system on the website of the United States Securities and Exchange Commission.

 

 

 

Beginning today at 09:00 a.m. CEST, the press conference at which CEO Peter Löscher and CFO Joe Kaeser discuss the financial figures for the second quarter of fiscal year 2013 will be broadcast live at www.siemens.com/conferencecall. Recordings of the press conference and the analysts and investors conference will subsequently be made available as well.

Starting at 10:30 a.m. CEST, Peter Löscher and Joe Kaeser will hold an analyst conference in English, which can be followed live at www.siemens.com/analystconference.

This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. 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. We may also make forward-looking statements in other reports, in presentations, in material delivered to stockholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect Siemens’ 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 or anticipated on the basis of historical trends. These factors include in particular, but are not limited to, the matters described in Item 3: Key information—Risk factors of our most recent annual report on Form 20-F filed with the SEC, in the chapter “Risks” of our most recent annual report prepared in accordance with the German Commercial Code, and in the chapter “Report on risks and opportunities” of our most recent interim report.

Further information about risks and uncertainties affecting Siemens is included throughout our most recent annual and interim reports, as well as our most recent

earnings release, which are available on the Siemens website, www.siemens.com, and throughout our most recent annual report on Form 20-F and in our other filings with the SEC, which are available on the Siemens website, www.siemens.com, and on the SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of Siemens may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

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.

 


Table of Contents

SIEMENS

CONSOLIDATED STATEMENTS OF INCOME (preliminary and unaudited)

For the three and six months ended March 31, 2013 and 2012

(in millions of , per share amounts in )

 

     Three months ended
March 31,
    Six months ended
March 31,
 
     2013     2012(1)     2013     2012(1)  

Revenue

       18,011          19,297          36,157          37,199   

Cost of goods sold and services rendered

     (12,950     (13,734     (25,872     (26,563
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     5,061        5,563        10,285        10,636   

Research and development expenses

     (1,042     (1,067     (2,042     (2,054

Marketing, selling and general administrative expenses

     (2,758     (2,614     (5,398     (5,253

Other operating income

     61        110        200        224   

Other operating expense

     (55     (29     (192     (130

Income (loss) from investments accounted for using the equity method, net

     68        (563     164        (366

Interest income

     225        227        458        469   

Interest expense

     (185     (192     (375     (386

Other financial income (expense), net

     (37     (29     (70     19   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

     1,336        1,405        3,030        3,159   

Income taxes

     (354     (426     (903     (893
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     982        979        2,127        2,265   

Income (loss) from discontinued operations, net of income taxes

     48        (41     116        56   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     1,030        938        2,243        2,322   
  

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

        

Non-controlling interests

     20        34        37        52   

Shareholders of Siemens AG

     1,009        904        2,207        2,270   

Basic earnings per share

        

Income from continuing operations

     1.14        1.08        2.48        2.53   

Income (loss) from discontinued operations

     0.05        (0.05     0.13        0.06   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     1.20        1.03        2.61        2.59   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

        

Income from continuing operations

     1.13        1.07        2.46        2.51   

Income (loss) from discontinued operations

     0.05        (0.05     0.13        0.06   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     1.18        1.02        2.59        2.56   
  

 

 

   

 

 

   

 

 

   

 

 

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (preliminary and unaudited)

For the three and six months ended March 31, 2013 and 2012

(in millions of )

  

  

  

     Three months
ended March 31,
    Six months
ended March 31,
 
         2013             2012(1)              2013             2012(1)       

Net income

       1,030          938          2,243          2,322   

Items that will not be reclassified to profit or loss:

        

Remeasurements of defined benefit plans

     41        (471     (55     (69

Items that may be reclassified subsequently to profit or loss:

        

Currency translation differences

     341        (111     (35     448   

Available-for-sale financial assets

     8        138        9        81   

Derivative financial instruments

     (32     143        42        70   
  

 

 

   

 

 

   

 

 

   

 

 

 
     316        169        16        600   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income, net of tax (2)

     357        (302     (39     531   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

     1,386        637        2,205        2,852   
  

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

        

Non-controlling interests

     37        25        38        53   

Shareholders of Siemens AG

     1,349        612        2,166        2,800   

 

 

 

(1) Adjusted for effects of adopting IAS 19R.

 

(2) Includes income (expense) resulting from investments accounted for using the equity method of (48) million and 55  million, respectively, for the three months ended March 31, 2013 and 2012, and (114) million and 23  million for the six months ended March 31, 2013 and 2012, respectively.

 

  Thereof (59) million and (6)  million, respectively, for the three months ended March 31, 2013 and 2012, and  

(117) million and (49) million for the six months ended March 31, 2013 and 2012, respectively, are attributable to items that will not be reclassified to profit or loss.

Due to rounding, numbers presented may not add up precisely to totals provided.


Table of Contents

SIEMENS

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of March 31, 2013 (preliminary and unaudited) and September 30, 2012

(in millions of )

 

     3/31/13     9/30/12(1)  

ASSETS

    

Current assets

    

Cash and cash equivalents

     7,892        10,891   

Available-for-sale financial assets

     533        524   

Trade and other receivables

     15,271        15,220   

Other current financial assets

     3,094        2,901   

Inventories

     16,381        15,679   

Income tax receivables

     749        836   

Other current assets

     1,375        1,277   

Assets classified as held for disposal

     4,701        4,799   
  

 

 

   

 

 

 

Total current assets

     49,996        52,128   
  

 

 

   

 

 

 

Goodwill

     17,396        17,069   

Other intangible assets

     4,688        4,595   

Property, plant and equipment

     10,502        10,763   

Investments accounted for using the equity method

     4,641        4,436   

Other financial assets

     14,369        14,666   

Deferred tax assets

     3,338        3,748   

Other assets

     964        846   
  

 

 

   

 

 

 

Total assets

     105,894        108,251   
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Current liabilities

    

Short-term debt and current maturities of long-term debt

     2,752        3,826   

Trade payables

     6,801        8,036   

Other current financial liabilities

     1,796        1,460   

Current provisions

     4,656        4,750   

Income tax payables

     1,741        2,204   

Other current liabilities

     21,846        20,302   

Liabilities associated with assets classified as held for disposal

     1,953        2,049   
  

 

 

   

 

 

 

Total current liabilities

     41,544        42,627   
  

 

 

   

 

 

 

Long-term debt

     20,182        16,880   

Pension plans and similar commitments

     9,890        9,801   

Deferred tax liabilities

     554        494   

Provisions

     3,853        3,908   

Other financial liabilities

     1,192        1,083   

Other liabilities

     2,059        2,034   
  

 

 

   

 

 

 

Total liabilities

     79,274        76,827   
  

 

 

   

 

 

 

Equity

    

Common stock, no par value (2)

     2,643        2,643   

Additional paid-in capital

     5,428        6,173   

Retained earnings

     19,845        22,877   

Other components of equity

     1,072        1,058   

Treasury shares, at cost (3)

     (2,919     (1,897
  

 

 

   

 

 

 

Total equity attributable to shareholders of Siemens AG

     26,071        30,855   
  

 

 

   

 

 

 

Non-controlling interests

     549        569   
  

 

 

   

 

 

 

Total equity

     26,620        31,424   
  

 

 

   

 

 

 

Total liabilities and equity

     105,894        108,251   
  

 

 

   

 

 

 

 

 

 

(1) Adjusted for effects of adopting IAS 19R.

 

(2) Authorized: 1,084,600,000 and 1,084,600,000 shares, respectively. Issued: 881,000,000 and 881,000,000 shares, respectively.

 

(3) 37,685,268 and 24,725,674 shares, respectively.

Due to rounding, numbers presented may not add up precisely to totals provided.


Table of Contents

SIEMENS

CONSOLIDATED STATEMENTS OF CASH FLOW (preliminary and unaudited)

For the three months ended March 31, 2013 and 2012

(in millions of )

 

     Three months
ended March 31,
 
     2013     2012(1)  

Cash flows from operating activities

    

Net income

     1,030        938   

Adjustments to reconcile net income to cash provided by (used in) operating activities — continuing operations

    

(Income) loss from discontinued operations, net of income taxes

     (48     41   

Amortization, depreciation and impairments

     705        672   

Income taxes

     354        426   

Interest (income) expense, net

     (40     (34

(Gains) losses on sales and disposals of businesses, intangibles and property, plant and equipment, net

     (6     (21

(Gains) losses on sales of investments, net (2)

            (8

(Income) losses from investments (2)

     (64     576   

Other non-cash (income) expenses

     108        121   

Change in assets and liabilities

    

(Increase) decrease in inventories

     (52     (617

(Increase) decrease in trade and other receivables

     684        260   

Increase (decrease) in trade payables

     245        297   

Change in other assets and liabilities

     (627     (1,322

Additions to assets held for rental in operating leases

     (119     (91

Income taxes paid

     (705     (467

Dividends received

     74        43   

Interest received

     196        205   
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities — continuing operations

     1,735        1,018   

Net cash provided by (used in) operating activities — discontinued operations

     (2     39   
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities — continuing and discontinued operations

     1,732        1,057   

Cash flows from investing activities

    

Additions to intangible assets and property, plant and equipment

     (360     (486

Acquisitions, net of cash acquired

     (689     (477

Purchases of investments (2)

     (110     (30

Purchases of current available-for-sale financial assets

     (22     (117

(Increase) decrease in receivables from financing activities

     (440     (225

Proceeds and (payments) from sales of investments, intangibles and property, plant and
equipment
(2)

     333        46   

Proceeds and (payments) from disposals of businesses

     5        80   

Proceeds from sales of current available-for-sale financial assets

     10        65   
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities — continuing operations

     (1,273     (1,145

Net cash provided by (used in) investing activities — discontinued operations

     (59     (295
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities — continuing and discontinued operations

     (1,332     (1,440

Cash flows from financing activities

    

Purchase of common stock

     (100       

Proceeds (payments) relating to other transactions with owners

     8        101   

Proceeds from issuance of long-term debt

     3,467        2,473   

Repayment of long-term debt (including current maturities of long-term debt)

     (2,023     (982

Change in short-term debt and other financing activities

     969        1,013   

Interest paid

     (105     (76

Dividends paid

     (2,528     (2,629

Dividends paid to non-controlling interest holders

     (66     (70

Financing discontinued operations (3)

     (73     (243
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities — continuing operations

     (453     (413

Net cash provided by (used in) financing activities — discontinued operations

     61        257   
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities — continuing and discontinued operations

     (393     (157

Effect of exchange rates on cash and cash equivalents

     60        (24

Net increase (decrease) in cash and cash equivalents

     68        (564

Cash and cash equivalents at beginning of period

     7,875        9,018   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

     7,943        8,454   

Less: Cash and cash equivalents of assets classified as held for disposal and discontinued operations at end of period

     51        30   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period (Consolidated Statements of Financial Position)

     7,892        8,424   
  

 

 

   

 

 

 

 

 

 

(1) Adjusted for effects of adopting IAS 19R.

 

(2) Investments include equity instruments either classified as non-current available-for-sale financial assets, accounted for using the equity method or classified as held for disposal. Purchases of investments includes certain loans to investments accounted for using the equity method.

 

(3) Discontinued operations are financed principally through Corporate Treasury. The item Financing discontinued operations includes these intercompany financing transactions.

Due to rounding, numbers presented may not add up precisely to totals provided.

 


Table of Contents

SIEMENS

CONSOLIDATED STATEMENTS OF CASH FLOW (preliminary and unaudited)

For the six months ended March 31, 2013 and 2012

(in millions of )

 

     Six months
ended March 31,
 
     2013     2012(1)  

Cash flows from operating activities

    

Net income

     2,243        2,322   

Adjustments to reconcile net income to cash provided by (used in) operating activities — continuing operations

    

(Income) loss from discontinued operations, net of income taxes

     (116     (56

Amortization, depreciation and impairments

     1,359        1,320   

Income taxes

     903        893   

Interest (income) expense, net

     (84     (83

(Gains) losses on sales and disposals of businesses, intangibles and property, plant and equipment, net

     (36     (33

(Gains) losses on sales of investments, net (2)

     (6     (184

(Gains) losses on sales and impairments of current available-for-sale financial assets, net

     (1     1   

(Income) losses from investments (2)

     (147     460   

Other non-cash (income) expenses

     236        25   

Change in assets and liabilities

    

(Increase) decrease in inventories

     (497     (1,403

(Increase) decrease in trade and other receivables

     15        (639

Increase (decrease) in trade payables

     (1,260     (369

Change in other assets and liabilities

     (955     (1,384

Additions to assets held for rental in operating leases

     (211     (193

Income taxes paid

     (1,274     (700

Dividends received

     99        51   

Interest received

     411        424   
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities — continuing operations

     681        452   

Net cash provided by (used in) operating activities — discontinued operations

     76        (113
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities — continuing and discontinued operations

     757        339   

Cash flows from investing activities

    

Additions to intangible assets and property, plant and equipment

     (739     (934

Acquisitions, net of cash acquired

     (718     (741

Purchases of investments (2)

     (196     (140

Purchases of current available-for-sale financial assets

     (29     (125

(Increase) decrease in receivables from financing activities

     (559     (1,233

Proceeds and (payments) from sales of investments, intangibles and property, plant and equipment (2)

     389        401   

Proceeds and (payments) from disposals of businesses

     (36     79   

Proceeds from sales of current available-for-sale financial assets

     30        74   
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities — continuing operations

     (1,856     (2,618

Net cash provided by (used in) investing activities — discontinued operations

     (108     (408
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities — continuing and discontinued operations

     (1,964     (3,026

Cash flows from financing activities

    

Purchase of common stock

     (1,320       

Proceeds (payments) relating to other transactions with owners

     4        101   

Proceeds from issuance of long-term debt

     3,467        2,473   

Repayment of long-term debt (including current maturities of long-term debt)

     (2,032     (3,189

Change in short-term debt and other financing activities

     947        2,200   

Interest paid

     (229     (245

Dividends paid

     (2,528     (2,629

Dividends paid to non-controlling interest holders

     (108     (95

Financing discontinued operations (3)

     (51     (552
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities — continuing operations

     (1,849     (1,937

Net cash provided by (used in) financing activities — discontinued operations

     32        521   
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities — continuing and discontinued operations

     (1,817     (1,416

Effect of exchange rates on cash and cash equivalents

     17        46   

Net increase (decrease) in cash and cash equivalents

     (3,007     (4,058

Cash and cash equivalents at beginning of period

     10,950        12,512   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

     7,943        8,454   

Less: Cash and cash equivalents of assets classified as held for disposal and discontinued operations at end of period

     51        30   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period (Consolidated Statements of Financial Position)

     7,892        8,424   
  

 

 

   

 

 

 

 

 

 

(1) Adjusted for effects of adopting IAS 19R.

 

(2) Investments include equity instruments either classified as non-current available-for-sale financial assets, accounted for using the equity method or classified as held for disposal. Purchases of investments includes certain loans to investments accounted for using the equity method.

 

(3) Discontinued operations are financed principally through Corporate Treasury. The item Financing discontinued operations includes these intercompany financing transactions.

Due to rounding, numbers presented may not add up precisely to totals provided.


Table of Contents

SIEMENS

SEGMENT INFORMATION (continuing operations — preliminary and unaudited)

As of and for the three months ended March 31, 2013 and 2012 and as of September 30, 2012

(in millions of )

 

    Orders(1)     External
revenue
    Intersegment
revenue
    Total
revenue
    Profit(2)     Assets(3)     Free
cash flow(4)
    Additions to
intangible assets

and  property, plant
and equipment
    Amortization,
depreciation
and
impairments(5)
 
    2013     2012     2013     2012     2013     2012     2013     2012     2013     2012     3/31/13     9/30/12     2013     2012     2013     2012     2013     2012  

Sectors

                                   

Energy

    8,464        5,815        6,196        6,832        64        56        6,260        6,888        551        573        2,013        1,116        925        4        71        122        130        116   

Healthcare

    3,330        3,246        3,273        3,354        5        8        3,278        3,362        445        424        12,000        11,757        450        380        62        61        158        177   

Industry

    4,623        5,144        4,227        4,641        393        428        4,619        5,070        350        662        8,088        7,014        467        441        83        84        184        141   

Infrastructure & Cities

    5,210        3,896        3,876        4,052        186        205        4,062        4,257        27        270        4,312        4,012        (33     337        50        70        67        67   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Sectors

    21,627        18,101        17,571        18,879        648        698        18,219        19,577        1,374        1,929        26,414        23,899        1,808        1,162        266        338        539        501   

Equity Investments

                                                            8        (594     2,755        2,715                                             

Financial Services (SFS)

    236        189        221        178        15        12        236        189        113        74        17,872        17,405        301        261        3        12        61        78   

Reconciliation to Consolidated Financial Statements

                                   

Centrally managed portfolio activities

    102        79        66        74        3        2        68        76        21        6        (370     (448     (6     (40     2        1        1        1   

Siemens Real Estate (SRE)

    622        610        69        81        553        529        622        610        (2            4,938        5,018        16        (68     69        113        75        86   

Corporate items and pensions

    132        122        85        85        48        53        133        138        (153     12        (11,440     (11,693     (75     (334     21        24        37        16   

Eliminations, Corporate Treasury and other reconciling items

    (1,269     (1,222                   (1,267     (1,293     (1,267     (1,293     (25     (22     65,725        71,354        (669     (449            (2     (9     (11
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Siemens

    21,451        17,880        18,011        19,297                      18,011        19,297        1,336        1,405        105,894        108,251        1,375        532        360        486        704        672   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

 

(1) This supplementary information on Orders is provided on a voluntary basis. It is not part of the Interim Consolidated Financial Statements subject to the review opinion.

 

(2) Profit of the Sectors as well as of Equity Investments and Centrally managed portfolio activities is earnings before financing interest, certain pension costs and income taxes. Certain other items not considered performance indicative by Management may be excluded. Profit of SFS and SRE is Income before income taxes.

 

(3) Assets of the Sectors as well as of Equity Investments and Centrally managed portfolio activities is defined as Total assets less income tax assets, less non-interest bearing liabilities other than tax liabilities. Assets of SFS and SRE is Total assets.

 

(4) 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, Equity Investments and Centrally managed portfolio activities 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.

 

(5) Amortization, depreciation and impairments contains amortization and impairments, net of reversals of impairments, of intangible assets other than goodwill as well as depreciation and impairments of property, plant and equipment, net of reversals of impairments.

Due to rounding, numbers presented may not add up precisely to totals provided.


Table of Contents

SIEMENS

SEGMENT INFORMATION (continuing operations — preliminary and unaudited)

As of and for the six months ended March 31, 2013 and 2012 and as of September 30, 2012

(in millions of )

 

    Orders(1)     External
revenue
    Intersegment
revenue
    Total
revenue
    Profit(2)     Assets(3)     Free cash
flow(4)
    Additions to
intangible assets
and property, plant
and equipment
    Amortization,
depreciation
and
impairments(5)
 
    2013     2012     2013     2012     2013     2012     2013     2012     2013     2012     3/31/13     9/30/12     2013     2012     2013     2012     2013     2012  

Sectors

                                   

Energy

    15,835        12,998        12,435        12,956        127        108        12,562        13,064        961        1,054        2,013        1,116        135        100        144        222        274        224   

Healthcare

    6,616        6,530        6,519        6,494        10        20        6,530        6,513        948        788        12,000        11,757        675        224        114        159        320        382   

Industry

    9,132        10,045        8,491        8,986        761        786        9,252        9,772        849        1,218        8,088        7,014        650        518        144        160        334        278   

Infrastructure & Cities

    9,574        8,575        7,858        7,933        344        379        8,202        8,312        155        470        4,312        4,012        (398     190        99        123        135        132   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Sectors

    41,158        38,147        35,304        36,368        1,243        1,293        36,547        37,661        2,915        3,530        26,414        23,899        1,061        1,033        500        664        1,062        1,016   

Equity Investments

                                                            143        (519     2,755        2,715               2                               

Financial Services (SFS)

    440        386        413        354        27        33        440        386        230        274        17,872        17,405        396        316        46        18        119        138   

Reconciliation to Consolidated Financial Statements

                                   

Centrally managed portfolio activities

    168        151        130        149        5        5        135        154        23        6        (370     (448     (23     (54     2        2        2        2   

Siemens Real Estate (SRE)

    1,222        1,164        144        164        1,078        1,013        1,222        1,177        43        5        4,938        5,018        (77     (147     155        195        140        155   

Corporate items and pensions

    259        258        166        163        93        96        259        259        (318     (154     (11,440     (11,693     (510     (760     36        56        54        31   

Eliminations, Corporate Treasury and other reconciling items

    (2,404     (2,418                   (2,446     (2,439     (2,446     (2,439     (5     17        65,725        71,354        (905     (872            (2     (18     (21
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Siemens

    40,843        37,689        36,157        37,199                      36,157        37,199        3,030        3,159        105,894        108,251        (58     (482     739        934        1,359        1,320   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

 

(1) This supplementary information on Orders is provided on a voluntary basis. It is not part of the Interim Consolidated Financial Statements subject to the review opinion.

 

(2) Profit of the Sectors as well as of Equity Investments and Centrally managed portfolio activities is earnings before financing interest, certain pension costs and income taxes. Certain other items not considered performance indicative by Management may be excluded. Profit of SFS and SRE is Income before income taxes.

 

(3) Assets of the Sectors as well as of Equity Investments and Centrally managed portfolio activities is defined as Total assets less income tax assets, less non-interest bearing liabilities other than tax liabilities. Assets of SFS and SRE is Total assets.

 

(4) 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, Equity Investments and Centrally managed portfolio activities 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.

 

(5) Amortization, depreciation and impairments contains amortization and impairments, net of reversals of impairments, of intangible assets other than goodwill as well as depreciation and impairments of property, plant and equipment, net of reversals of impairments.

Due to rounding, numbers presented may not add up precisely to totals provided.


Table of Contents

SUPPLEMENTAL DATA

SIEMENS

ADDITIONAL INFORMATION (I) (continuing operations — preliminary and unaudited)

Orders, Revenue, Profit, Profit margin developments and growth rates for Sectors

For the three months ended March 31, 2013 and 2012

(in millions of )

 

    Orders     Revenue     Profit(1)     Profit margin  
    2013     2012     % Change     therein     2013     2012     % Change     therein     2013     2012     % Change     2013     2012  
                Actual     Adjusted(2)     Cur-
rency
    Port-
folio
                Actual     Adjusted(2)     Cur-
rency
    Port-
folio
                               

Sectors

                                 

Energy Sector

    8,464        5,815        46     45     0     1     6,260        6,888        (9 )%      (9 )%      (1 )%      1     551        573        (4 )%      8.8     8.3

therein:

                                 

Fossil Power Generation

    2,655        2,552        4     4     0     0     2,447        2,861        (14 )%      (14 )%      0     0     431        501        (14 )%      17.6     17.5

Wind Power

    3,289        568        >200     >200     (2 )%      0     1,046        1,297        (19 )%      (18 )%      (1 )%      0     53        130        (59 )%      5.1     10.0

Oil & Gas

    1,164        1,181        (1 )%      (5 )%      0     4     1,270        1,284        (1 )%      (6 )%      0     5     125        131        (5 )%      9.8     10.2

Power Transmission

    1,421        1,559        (9 )%      (8 )%      (1 )%      0     1,507        1,479        2     3     (1 )%      0     (49     (169     71     (3.2 )%      (11.5 )% 

Healthcare Sector

    3,330        3,246        3     4     (1 )%      0     3,278        3,362        (2 )%      (1 )%      (2 )%      0     445        424        5     13.6     12.6

therein:

                                 

Diagnostics

    963        979        (2 )%      0     (1 )%      0     963        976        (1 )%      0     (1 )%      0     84        67        26     8.7     6.8

Industry Sector

    4,623        5,144        (10 )%      (11 )%      0     1     4,619        5,070        (9 )%      (9 )%      (1 )%      0     350        662        (47 )%      7.6     13.1

therein:

                                 

Industry Automation

    2,242        2,420        (7 )%      (9 )%      0     3     2,181        2,334        (7 )%      (7 )%      (1 )%      1     201        335        (40 )%      9.2     14.4

Drive Technologies

    2,230        2,511        (11 )%      (11 )%      0     0     2,186        2,423        (10 )%      (9 )%      0     0     147        279        (47 )%      6.7     11.5

Infrastructure & Cities Sector

    5,210        3,896        34     34     (1 )%      0     4,062        4,257        (5 )%      (4 )%      (1 )%      0     27        270        (90 )%      0.7     6.4

therein:

                                 

Transportation & Logistics

    2,356        954        147     148     (2 )%      0     1,317        1,409        (7 )%      (6 )%      0     0     (156     75        n/a        (11.9 )%      5.3

Power Grid Solutions & Products

    1,460        1,551        (6 )%      (5 )%      (1 )%      1     1,442        1,460        (1 )%      0     (1 )%      0     98        101        (2 )%      6.8     6.9

Building Technologies

    1,455        1,452        0     0     0     0     1,375        1,442        (5 )%      (5 )%      0     0     59        77        (23 )%      4.3     5.3
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

Total Sectors

    21,627        18,101        19     19     (1 )%      1     18,219        19,577        (7 )%      (7 )%      (1 )%      0     1,374        1,929        (29 )%     
 

 

 

   

 

 

           

 

 

   

 

 

           

 

 

   

 

 

       

 

 

 

(1) Profit is earnings before financing interest, certain pension costs and income taxes. Certain other items not considered performance indicative by Management may be excluded.

 

(2) Excluding currency translation and portfolio effects.

Due to rounding, numbers presented may not add up precisely to totals provided.


Table of Contents

SUPPLEMENTAL DATA

SIEMENS

ADDITIONAL INFORMATION (I) (continuing operations — preliminary and unaudited)

Orders, Revenue, Profit, Profit margin developments and growth rates for Sectors

For the six months ended March 31, 2013 and 2012

(in millions of )

 

    Orders     Revenue     Profit(1)     Profit margin  
    2013     2012     % Change     therein     2013     2012     % Change     therein     2013     2012     % Change     2013     2012  
                Actual     Adjusted(2)     Cur-
rency
    Port-
folio
                Actual     Adjusted(2)     Cur-
rency
    Port-
folio
                               

Sectors

                                 

Energy Sector

    15,835        12,998        22     21     0     1     12,562        13,064        (4 )%      (5 )%      1     1     961        1,054        (9 )%      7.7     8.1

therein:

                                 

Fossil Power Generation

    5,894        5,294        11     10     1     0     5,029        5,473        (8 )%      (9 )%      1     0     937        1,082        (13 )%      18.6     19.8

Wind Power

    4,451        2,109        111     111     0     0     2,183        2,193        0     (1 )%      1     0     105        105        1     4.8     4.8

Oil & Gas

    2,568        2,603        (1 )%      (6 )%      1     4     2,522        2,523        0     (5 )%      1     4     149        221        (33 )%      5.9     8.8

Power Transmission

    2,807        3,113        (10 )%      (10 )%      0     0     2,891        2,944        (2 )%      (2 )%      0     0     (65     (314     79     (2.2 )%      (10.7 )% 

Healthcare Sector

    6,616        6,530        1     1     0     0     6,530        6,513        0     0     0     0     948        788        20     14.5     12.1

therein:

                                 

Diagnostics

    1,924        1,906        1     1     0     0     1,924        1,901        1     1     0     0     195        134        46     10.2     7.0

Industry Sector

    9,132        10,045        (9 )%      (10 )%      0     1     9,252        9,772        (5 )%      (6 )%      0     0     849        1,218        (30 )%      9.2     12.5

therein:

                                 

Industry Automation

    4,423        4,871        (9 )%      (11 )%      0     1     4,399        4,583        (4 )%      (5 )%      0     1     508        658        (23 )%      11.6     14.4

Drive Technologies

    4,483        4,808        (7 )%      (7 )%      1     0     4,277        4,584        (7 )%      (7 )%      0     0     316        474        (33 )%      7.4     10.3

Infrastructure & Cities Sector

    9,574        8,575        12     11     1     0     8,202        8,312        (1 )%      (2 )%      0     0     155        470        (67 )%      1.9     5.7

therein:

                                 

Transportation & Logistics

    3,713        2,891        28     28     0     0     2,686        2,808        (4 )%      (5 )%      0     0     (210     102        n/a        (7.8 )%      3.6

Power Grid Solutions & Products

    3,169        3,047        4     3     1     0     2,878        2,813        2     2     0     0     198        183        9     6.9     6.5

Building Technologies

    2,823        2,805        1     0     1     0     2,777        2,812        (1 )%      (2 )%      1     0     152        162        (6 )%      5.5     5.8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

Total Sectors

    41,158        38,147        8     7     0     1     36,547        37,661        (3 )%      (4 )%      0     0     2,915        3,530        (17 )%     
 

 

 

   

 

 

           

 

 

   

 

 

           

 

 

   

 

 

       

 

 

 

(1) Profit is earnings before financing interest, certain pension costs and income taxes. Certain other items not considered performance indicative by Management may be excluded.

 

(2) Excluding currency translation and portfolio effects.

Due to rounding, numbers presented may not add up precisely to totals provided.


Table of Contents

SUPPLEMENTAL DATA

SIEMENS

ADDITIONAL INFORMATION (II) (continuing operations — preliminary and unaudited)

Reconciliation from Profit / Income before income taxes to adjusted EBITDA

For the three months ended March 31, 2013 and 2012

(in millions of )

 

     Profit(1)     Income (loss)
from investments
accounted for
using the equity
method, net(2)
    Financial
income
(expense),
net(3)
    Adjusted
EBIT(4)
    Amortization(5)      Depreciation
and impairments
of property, plant
and equipment
and goodwill(6)
    Adjusted
EBITDA
    Adjusted
EBITDA margin
 
     2013     2012     2013     2012     2013     2012     2013     2012     2013      2012      2013     2012     2013     2012     2013     2012  

Sectors

                                  

Energy Sector

     551        573        11        7        (7     (9     548        576        30         21         101        95        679        691        10.9     10.0

therein:

                                  

Fossil Power Generation

     431        501        6        2        (3     (5     427        504        5         5         35        34        467        543       

Wind Power

     53        130        (4     2        (2     (1     59        129        9         7         24        20        92        157       

Oil & Gas

     125        131                      (1     (1     125        132        12         7         20        17        158        156       

Power Transmission

     (49     (169     5        6        (3     (1     (51     (173     3         2         25        22        (23     (150    

Healthcare Sector

     445        424        2        2        4        (1     440        423        78         94         80        83        598        600        18.2     17.9

therein:

                                  

Diagnostics

     84        67                      3        1        82        66        48         48         53        57        183        171       

Industry Sector

     350        662        4        4        (1     (3     346        661        89         64         96        77        531        803        11.5     15.8

therein:

                                  

Industry Automation

     201        335                             (3     201        337        68         50         35        32        304        419       

Drive Technologies

     147        279        4        3               (2     144        278        19         12         57        42        221        332       

Infrastructure & Cities Sector

     27        270        6        6        15        14        6        251        27         27         41        40        73        318        1.8     7.5

therein:

                                  

Transportation & Logistics

     (156     75        4        3        (2     (4     (158     76        4         3         11        12        (143     91       

Power Grid Solutions & Products

     98        101        2        2        (4     (1     100        99        9         10         18        17        126        126       

Building Technologies

     59        77                             (1     59        78        14         14         11        12        85        103       

Total Sectors

     1,374        1,929        23        18        10               1,341        1,911        223         206         318        295        1,881        2,412       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

     

Equity Investments

     8        (594     6        (599     2        2               3                                             3       

Financial Services (SFS)

     113        74        20        21        104        88        (11     (34     1         2         60        77        50        45       

Reconciliation to Consolidated Financial Statements

                                  

Centrally managed portfolio activities

     21        6        21        1                             5        1         1                       1        6       

Siemens Real Estate (SRE)

     (2                          (28     (30     26        30                        74        86        100        116       

Corporate items and pensions

     (153     12                      (88     (52     (65     64        4         4         32        12        (28     80       

Eliminations, Corporate Treasury and other reconciling items

     (25     (22     (1     (3     2        (3     (25     (16                     (9     (11     (34     (27    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

     

Siemens

     1,336        1,405        68        (563     3        5        1,265        1,963        229         212         476        460        1,970        2,635       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

(1) Profit of the Sectors as well as of Equity Investments and Centrally managed portfolio activities is earnings before financing interest, certain pension costs and income taxes. Certain other items not considered performance indicative by Management may be excluded. Profit of SFS and SRE is Income before income taxes. Profit of Siemens is Income from continuing operations before income taxes. For a reconciliation of Income from continuing operations before income taxes to Net income see Consolidated Statements of Income.

 

(2) Includes impairments and reversals of impairments of investments accounted for using the equity method.

 

(3) Includes impairment of non-current available-for-sale financial assets. For Siemens, Financial income (expense), net comprises Interest income, Interest expense and Other financial income (expense), net as reported in the Consolidated Statements of Income.

 

(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, net of reversals, of intangible assets other than goodwill.

 

(6) Depreciation and impairments of property, plant and equipment, net of reversals. Includes impairments of goodwill of — million and — million for the three months ended March 31, 2013 and 2012, respectively.

Due to rounding, numbers presented may not add up precisely to totals provided.


Table of Contents

SUPPLEMENTAL DATA

SIEMENS

ADDITIONAL INFORMATION (II) (continuing operations — preliminary and unaudited)

Reconciliation from Profit / Income before income taxes to adjusted EBITDA

For the six months ended March 31, 2013 and 2012

(in millions of )

 

    Profit(1)     Income (loss)
from investments

accounted for
using the equity
method, net(2)
    Financial
income
(expense),
net
(3)
    Adjusted
EBIT(4)
    Amortization(5)     Depreciation
and impairments
of property, plant
and equipment
and goodwill(6)
    Adjusted
EBITDA
    Adjusted
EBITDA margin
 
    2013     2012     2013     2012     2013     2012     2013     2012     2013     2012     2013     2012     2013     2012     2013     2012  

Sectors

                               

Energy Sector

    961        1,054        (67     28        (15     70        1,043        956        56        41        218        183        1,317        1,180        10.5     9.0

therein:

                               

Fossil Power Generation

    937        1,082        20        17        (7     75        925        989        10        10