Munich, 2015-May-07
Second-quarter orders up 16%, to €20.8 billion, including large orders in the rail business; on a comparable basis, excluding currency translation and portfolio effects, orders up 7%
Revenue 8% higher at €18.0 billion, for a book-to-bill ratio of 1.15; revenue flat on a comparable basis
Industrial Business profit 5% lower, at €1.7 billion, due largely to Power and Gas as expected
Net income of €3.9 billion, including €1.6 billion, €1.4 billion and €0.2 billion, respectively, on the sale of the hearing aid business, Siemens' stake in BSH Bosch und Siemens Hausgeräte GmbH (BSH) and the hospital information business; resulting in basic earnings per share (EPS) of €4.70
"For business volume, we performed well in our markets. The profitability of our Industrial Business shows that we must still improve some businesses," said Joe Kaeser, President and Chief Executive Officer of Siemens AG.
Joe Kaeser, President and Chief Executive Officer of Siemens AG.

Siemens
Q2 % Change
(in millions of €) FY 2015 FY 2014 Actual Comp.
Orders 20,754 17,858 16% 7%
Revenue 18,049 16,695 8% 0%
Profit
Industrial Business 1,659 1,745 (5)%
therein: severance (98) −
Profit margin
Industrial Business 9.0% 10.3%
excl. severance 9.6% 0%
Income from continuing
operations 1,997 1,131 77%
Net income 3,908 1,153 >200%
Basic earnings per
share (in €) 4.70 1.33 >200%
Free cash flow
(continuing and
discontinued activities) (241) 1,402 n/a
ROCE (continuing and
discontinued activities) 42.1% 14.5%

 Second-quarter volume growth influenced strongly by
currency translation tailwinds from the weaker euro
compared to a year earlier
 Higher volume from large orders particularly in Mobility with
€1.7 billion order for regional trains and maintenance in
Germany; in addition, double-digit order growth in Power and
Gas, Healthcare, and Energy Management
 Industrial Business order backlog with new high at €109
billion, including €5 billion from currency translation
 Reported revenue higher in all Divisions, driven by favorable
currency translation effects; double-digit increases in
Healthcare and Energy Management
 Industrial Business profit lower due mainly to declines in
Power and Gas as well as Process Industries and Drives which
more than offset an improvement in Energy Management
 Continued planned increase in selling and R&D expenses
particularly evident in Power and Gas
 Severance charges for continuing operations were €140
million, with the largest share taken in Power and Gas
 Income from continuing operations: increase due mainly to a
gain of €1.4 billion from the sale of Siemens’ stake in BSH,
only partly offset by a loss of €0.2 billion related to Siemens’
stake in Unify Holdings B.V. (Unify) and negative effects
related to Corporate Treasury hedging instruments
 Net income: gains from sales of the hearing aid (€1.6 billion)
and hospital information (€0.2 billion) businesses within
discontinued operations
 Free cash flow: Industrial Business declined to €750 million
from €1.779 billion in Q2 FY 2014, due primarily to Wind
Power and Renewables as well as Power and Gas driven by a
build-up of inventories; Corporate Treasury was negative due
mainly to settlements of hedging instruments
 Cash inflows related to the sale of Siemens’ stake in BSH, the
hearing aid and hospital information businesses totaled €5.9
billion; payments were not part of Free cash flow
 Underfunding of Siemens‘ pension plans as of March 31,
2015: €11.0 billion (December 31, 2014: €9.6 billion);
increased due mainly to a lower discount rate assumption

Power and Gas
Q2 % Change
(in millions of €) FY 2015 FY 2014 Actual Comp.
Orders 3,087 2,677 15% 4%
Revenue 3,045 2,929 4% (6)%
Profit 392 594 (34)%
therein: severance (57) −
Profit margin 12.9% 20.3%
excl. severance 14.7% 0
 The Rolls-Royce Energy aero-derivative gas turbine and
compressor business, which was acquired between the
periods under review, contributed six percentage points to
both order growth and revenue growth
 Orders up compared to the weak prior-year quarter on growth
in the Middle East
 Revenue increase in the Americas due to currency translation;
decline in Asia, Australia
 Lower margins in the large gas turbine and compression
businesses; higher R&D expenses, in particular for the
development of new gas turbines, and higher selling
expenses, both in part due to the acquisition mentioned
above
 Positive effects related to projects elevated profit margin in
both periods; Q2 FY 2014 benefited from a €73 million gain
on the sale of the turbo fan business
 Continuing challenges resulting in increased price pressure
and production overcapacities

Wind Power and Renewables
Q2 % Change
(in millions of €) FY 2015 FY 2014 Actual Comp.
Orders 1,410 1,681 (16)% (27)%
Revenue 1,263 1,183 7% (1)%
Profit (44) (41) (6)%
therein: severance (1) −
Profit margin (3.5)% (3.5)%
excl. severance (3.4)%

 Lower volume from large orders, particularly in the offshore
business
 Revenue growth in the offshore and service businesses;
increase due to currency translation, mainly in the Americas;
decline in Asia, Australia
 Losses in both periods from ongoing high production and
installation costs as well as burdens related to inspecting and
replacing main bearings; current period includes expenses
for ramping-up commercial-scale production of a new turbine
offering

Energy Management
Q2 % Change
(in millions of €) FY 2015 FY 2014 Actual Comp.
Orders 3,100 2,822 10% 2%
Revenue 2,810 2,469 14% 4%
Profit 93 (187) n/a
therein: severance (3) −
Profit margin 3.3% (7.6)%
excl. severance 3.4%

 Substantial order growth in the Americas, driven by the
solutions and transformer businesses which won a large highvoltage
direct current (HVDC) order
 Revenue up in all businesses, primarily solutions, as well as in
all three reporting regions
 Profit development held back by a less favorable revenue mix
due to a high proportion of projects with low profit margins
 Q2 FY 2014 included project charges of €310 million related
primarily to two HVDC projects in Canada

Building Technologies
Q2 % Change
(in millions of €) FY 2015 FY 2014 Actual Comp.
Orders 1,464 1,337 9% 1%
Revenue 1,446 1,326 9% 1%
Profit 95 93 1%
therein: severance (3) −
Profit margin 6.6% 7.1%
excl. severance 6.8%

 Order growth due predominately to the U.S.
 Higher revenue in the service business and increase in the
Americas mainly from currency translation effects
 As expected, profit held back by impacts from substantial
appreciation of the Swiss franc; measures have been initiated
to compensate in the medium term

Mobility
Q2 % Change
(in millions of €) FY 2015 FY 2014 Actual Comp.
Orders 3,782 1,835 106% 95%
Revenue 1,836 1,698 8% 2%
Profit 157 154 2%
therein: severance (3) −
Profit margin 8.6% 9.1%
excl. severance 8.7%

 Sharply higher volume from large orders in Europe, including
a €1.7 billion contract for regional trains and maintenance
and an extension of an order worth €0.7 billion for high-speed
trains and service
 Revenue growth driven by execution of turnkey projects and
rail infrastructure business
 Revenue headwind expected in second half of fiscal 2015 due
to timing of large projects
 Profit supported by higher revenue and a net positive effect
related to certain high-speed train projects

Digital Factory
Q2 % Change
(in millions of €) FY 2015 FY 2014 Actual Comp.
Orders 2,569 2,392 7% 1%
Revenue 2,422 2,246 8% 2%
Profit 355 408 (13)%
therein: severance (8) −
Profit margin 14.7% 18.2%
excl. severance 15.0% 0

 Order development driven by growth in the motion control
and industry software businesses, and increases in all three
reporting regions including particular strength in the U.S.
 Revenue up in all businesses, primarily motion control and
industry software, as well as in all three reporting regions
 Higher margin in industry software; lower margins in other
businesses partly related to lower revenue share from highmargin
products compared to the prior-year period

Process Industries and Drives
Q2 % Change
(in millions of €) FY 2015 FY 2014 Actual Comp.
Orders 2,442 2,691 (9)% (13)%
Revenue 2,326 2,297 1% (5)%
Profit 85 188 (55)%
therein: severance (6) −
Profit margin 3.7% 8.2%
excl. severance 3.9%

 Lower volume from large orders, particularly in Asia,
Australia, and overall weaker demand in commodity-related
industries, especially in oil & gas, mining, metals and cement
 Revenue development driven by growth in the U.S. and China
due to currency translation tailwinds; lower revenue in
higher-margin process automation business
 Weak profit margin mainly due to operational challenges,
especially in the oil & gas and marine business and the large
drives business, related partly to secondary impacts from oil
price decline

Healthcare
Q2 % Change
(in millions of €) FY 2015 FY 2014 Actual Comp.
Orders 3,228 2,826 14% 4%
Revenue 3,212 2,854 13% 3%
Profit 526 536 (2)%
therein: severance (17) −
Profit margin 16.4% 18.8%
excl. severance 16.9%

 Orders and revenue up in all three reporting regions and
across all businesses, with the largest increase coming from
the imaging and therapy systems businesses
 Profit development included a €61 million gain from
divestment of the microbiology business; Q2 FY 2014
benefited from €66 million gain related to the sale of a
particle therapy installation

Financial Services
Q2
(in millions of €) FY 2015 FY 2014
Income before income taxes 195 114
therein: severance (1) −
ROE (after taxes) 28.0% 18.1%
(in millions of €)
Mar 31, 2015 Sep 30, 2014
Total assets 25,169 21,970

 Increase in income before income taxes driven by
substantially higher contribution from the equity business,
primarily including a net gain in connection with the sale of
renewable energy projects
 Higher total assets compared to the end of fiscal 2014 due
mainly to currency translation effects

Reconciliation to Consolidated
Financial Statements
Profit
Q2
(in millions of €) FY 2015 FY 2014
Centrally managed portfolio activities 1,172 50
Siemens Real Estate 38 18
Corporate items (190) (126)
Centrally carried pension expense (119) (96)
Amortization of intangible assets acquired in
business combinations (126) (135)
Eliminations, Corporate Treasury and other
reconciling items (79) 3
Reconciliation to
Consolidated Financial Statements 697 (287)

 Centrally managed portfolio activities (CMPA): includes a gain
of €1.4 billion on disposal of Siemens’ stake in BSH and a loss
of €0.2 billion related to Siemens’ stake in Unify; Q2 FY 2014
included equity investment income related to BSH
 Effective with the current quarter, CMPA includes the solar
business which was formerly part of Wind Power and
Renewables
 Corporate items: influenced by the fair value of warrants
issued together with US$3 billion in bonds in fiscal 2012,
which depends on the underlying Siemens and OSRAM share
prices as well as their respective volatilities; therefore results
are expected to remain volatile in coming quarters
 Eliminations, Corporate Treasury and other reconciling items:
negative effects related to changes in the fair value of interest
rate derivatives not qualifying for hedge accounting

Outlook
We confirm our outlook. We believe that our business environment will be complex in fiscal 2015, among other things due to
geopolitical tensions. We expect revenue on an organic basis to remain flat year-over-year, and orders to exceed revenue for a bookto-bill
ratio above 1. Furthermore, we expect that gains from divestments will enable us to increase basic EPS from net income by at
least 15% from €6.37 in fiscal 2014. For our Industrial Business, we expect a profit margin of 10% to 11%. This outlook excludes
impacts from legal and regulatory matters.

Notes and forward-looking statements
Starting today at 9:00 a.m. CEST, the analysts and investors conference at which Siemens CEO Joe Kaeser and Siemens CFO Ralf P.
Thomas discuss the quarterly figures will be broadcast live at www.siemens.com/analystconference.
Starting today at 10:40 a.m. CEST, CEO Joe Kaeser and CFO Ralf P. Thomas will hold a telephone conference in German for journalists,
which can be followed live at www.siemens.com/conferencecall.
Recordings of the analysts and investors conference and the telephone conference for journalists will subsequently be made
available as well.
Financial Publications are available for download at: www.siemens.com/ir  Publications & Events.

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