Form 6-K

 

 

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

November 10, 2011

Commission File Number: 1-15174

Siemens Aktiengesellschaft

(Translation of registrant’s name into English)

Wittelsbacherplatz 2

D-80333 Munich

Federal Republic of Germany

(Address of principal executive offices)

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

Form 20-F þ Form 40-F ¨

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 þ

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

Yes ¨ No þ

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

Yes ¨ No þ

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

 

 

 


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)

  

Legal Proceedings

  

Signature page

  


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Key figures Q4 and fiscal 20111,2

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1 New orders; Adjusted or organic growth rates of revenue and new 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 www.siemens.com/nonGAAP.

 

2 July 1, 2011 — September 30, 2011 and October 1, 2010 — September 30, 2011.

 

3 Adjusted for portfolio and currency translation effects.

 

4 Beginning with fiscal 2011, central infrastructure costs which were formerly reported in Corporate items are allocated primarily to the Sectors. The total amount to be allocated is determined at the beginning of the fiscal year and is charged in equal portions in all four quarters. Presentation of prior-year information has been adjusted to conform to the current-year presentation.

 

5 Earnings per share — attributable to shareholders of Siemens AG. For fiscal 2011 and 2010 weighted average shares outstanding (basic) (in thousands) for the fourth quarter amounted to 874,126 and 869,306, respectively and for the fiscal year to 873,098 and 868,244 shares, respectively.

 

6 Discontinued operations primarily consist of OSRAM, Siemens IT Solutions and Services, the former Communication activities and Siemens VDO Automotive.

 

7 Continuing and discontinued operations.

Volume

    (preliminary and unaudited; in  millions of , except where otherwise stated)  
                % Change           % Change
    Q4 2011     Q4 2010     Actual     Adjusted3     FY 2011     FY 2010     Actual     Adjusted3  

Continuing operations

               

New orders

    21,157        21,589        (2)%        2%         85,582        74,055        16%       16%  

Revenue

    20,351        19,403        5%        9%         73,515        68,978        7%         7%  
               

Earnings

                                                           
    Q4 2011     Q4 2010     % Change     FY 2011     FY 2010     % Change

Total Sectors

                     

Adjusted EBITDA

    2,867        2,488        15%        10,299        9,680           6%

Total Sectors Profit4

    2,166        791        174%        9,093        6,673        36%

in % of revenue (Total Sectors)  

    10.6 %      4.1 %        12.4 %      9.8 %   

Continuing operations

           

Adjusted EBITDA

    2,578        2,049        26%        10,596        9,805           8%

Income from continuing operations

    1,228        (42 )      n/a        7,011        4,262        65%

Basic earnings per share
(in  )
5

    1.33        (0.13 )      n/a        7.82        4.72        65%

Continuing and discontinued operations6

           

Net income

    1,231        (396 )      n/a        6,321        4,068        55%

Basic earnings per share
(in )
5

    1.34        (0.54 )      n/a        7.04        4.49        57%
               

Capital efficiency

                                                           
    Q4 2011     Q4 2010     FY 2011     FY 2010

Continuing operations

       

Return on capital employed (ROCE) (adjusted)

    17.6%         0.2%        24.0%        13.4%

Continuing and discontinued operations6

       

Return on capital employed (ROCE) (adjusted)

    16.1%        (4.1)%        20.7%        12.9%
               

Cash performance

                                                           
    Q4 2011     Q4 2010     FY 2011     FY 2010

Continuing operations

       

Free cash flow

    3,480        2,931        5,885        7,043

Cash conversion rate

      2.83             >1          0.84          1.65

Continuing and discontinued operations6

       

Free cash flow

    3,423        2,955        5,150        7,013

Cash conversion rate

      2.78             >1          0.81          1.72
               

Liquidity and capital structure

                                                           
    September 30, 2011     September 30, 2010

Cash and cash equivalents

    12,468        14,108

Total equity (Shareholders of Siemens AG)

    31,530        28,346

Net debt

      4,995          5,560

Adjusted industrial net debt

      (1,534)          2,189
               

Employees — in thousands

                                                           
    September 30, 2011     September 30, 2010
   

Continuing

operations

    Total7     Continuing
operations
    Total7

Employees

    360        402        336        405
Germany     116        127        110        128
Outside Germany     244        275        225        277
 


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Earnings Release Q4 2011

July 1 to September 30, 2011

Munich, Germany, November 10, 2011

Strong End to an Excellent Year

Revenue and income rise, Q4 cash hits new high

Full-year outlook achieved

 

Peter Löscher, President and Chief Executive Officer of Siemens AG

 

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“With a strong fourth quarter in a turbulent economic environment, we ended fiscal 2011 with record operating results. With our new organization into four Sectors we have aligned our business even more closely with our customers. Siemens has a strong portfolio and stands for stability and confidence in troubled times. We are well positioned for moderate revenue growth in fiscal 2012 and surpassing the 100 billion revenue threshold in the medium term.”

Financial Highlights:

 

 

Revenue for the fourth quarter rose 5%, to 20.351 billion, with increases in all regions including strong emerging market growth. Organic revenue grew 9% compared to the prior-year period, excluding currency translation and portfolio effects.

 

 

Orders came in at 21.157 billion, below the prior-year period but 2% higher on an organic basis. The book-to-bill ratio for the quarter was 1.04 and the order backlog was 96 billion.

 

 

Siemens’ Sectors continued their strong execution, delivering Total Sectors Profit of 2.166 billion, including 231 million in impairment charges in the solar business.

 

 

Income from continuing operations rose to 1.228 billion and corresponding basic EPS was 1.33.

 

 

An outstanding fourth-quarter cash performance in the Sectors lifted Free cash flow from continuing operations to 3.480 billion, well above last year’s strong closing quarter.

 

 

For fiscal 2011, Siemens achieved its outlook for financial results. Revenue rose 7% year-over-year, to 73.515 billion, and orders increased 16%, to 85.582 billion. Total Sectors Profit climbed 36% year-over-year, to 9.093 billion, and income from continuing operations reached 7.011 billion. Siemens proposes a dividend of 3.00 per share compared to 2.70  per share in fiscal 2010.

 

 

 

 

Table of Contents

 

  

  Siemens      2-4   
 

Sectors, Equity Investments,

Financial Services

     5-10   
  Corporate Activities      11   
 

Divestment of Siemens IT

Solutions and Services,

Outlook

     12   
 

Notes and Forward –

Looking Statements

     13-14   

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

 

 

 


 

Siemens      2

 

Orders and Revenue

 

Solid increase in revenue,

stable order development

Revenue rose 5% compared to the fourth quarter a year earlier, reflecting rapid order growth in recent quarters. New orders came in 2% lower compared to the prior-year quarter. On an organic basis, excluding currency translation and portfolio effects, fourth-quarter revenue increased 9% year-over-year. Organic order growth of 2% included increases in Industry and Healthcare and level orders in Energy. The book-to-bill ratio for Siemens overall was 1.04, and the backlog (defined as the sum of the order backlogs of our Sectors) remained strong at 96 billion at the end of the quarter.

Revenue rises in all regions

Revenue for Industry rose 8%, on higher revenue at all Divisions except Mobility. Energy took its revenue up 7%, with all Divisions contributing to the increase. Reported fourth-quarter revenue for the Healthcare Sector was nearly unchanged year-over-year. Organic revenue was higher for all three Sectors, including double-digit growth for Industry and Energy.

On a geographic basis, revenue rose in all three regions, led by 12% growth in Asia, Australia. Emerging markets on a global basis grew faster than revenue overall, at 8% year-over-year, and accounted for 7.235 billion, or 36%, of total revenue for the quarter.

Sectors hold their ground

in order development

Industry and Healthcare reported slight increases in new orders compared to the fourth quarter a year earlier. Energy saw a modest decline compared to the prior-year period, which included a higher volume from major orders.

On a geographic basis, the region comprising Europe, the Commonwealth of Independent States, Africa and the Middle East (Europe/CAME) delivered order growth of 3%. Orders fell in the Americas due primarily to strong negative currency translation effects in the U.S., and in Asia, Australia which had a lower volume from major orders. Emerging markets on a global basis accounted for 6.852 billion, or 32%, of total orders for the quarter. Due to a high basis of comparison in the prior-year period, emerging markets reported a 7% decrease year-over-year.

 

 

 

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Siemens      3

 

Income and Profit

 

Strong year-end quarter

for Total Sectors Profit

Total Sectors Profit reached 2.166 billion in the fourth quarter, led by profit of 1.041 billion in Industry. Energy contributed 631 million, below the prior-year level due primarily to impairment charges of 231 million at the solar business, and Healthcare delivered a strong year-end quarter with 494 million in profit. Total Sectors Profit was held back by negative effects of 88  million from hedging activities not qualifying for hedge accounting related to price volatility in commodities markets, with the strongest influence on profit development coming in Power Transmission, Building Technologies and Drive Technologies.

For comparison, Total Sectors Profit of 791 million in the same period a year earlier included a number of significant burdens on profit, primarily impairment charges in Healthcare’s Diagnostics business totaling 1.204 billion. Healthcare also took 96 million in charges associated with the particle therapy business, while Industry took charges of 125 million related to a project engagement with a local partner in the U.S. and charges of 113 million related to staff reduction measures.

Improved results below the

Sectors

Income from continuing operations reached 1.228 billion in the fourth quarter, with a corresponding basic EPS of 1.33. In the prior-year period, continuing operations posted a loss of 42 million and basic EPS was a negative 0.13. While the main factor in the difference year-over-year was higher Total Sectors Profit, results below the Sectors also improved year-over-year. In particular, Corporate Treasury activities generated positive income before income taxes and the loss from Equity Investments fell sharply. Expenses for Corporate items came in lower compared to the prior-year period, which included 267  million (pre-tax) related to a special remuneration for non-management employees worldwide.

Positive contribution from

discontinued operations

Net income was 1.231 billion in the fourth quarter compared to a net loss of 396 million in the prior-year quarter. Corresponding basic EPS improved to 1.34 from a negative 0.54. Within net income (loss), discontinued operations swung to a positive 3 million compared to a negative 354 million a year earlier. This improvement was due to income (loss) from discontinued operations related to Siemens IT Solutions and Services, which was a negative 6 million in the current quarter compared to a negative 361 million in the fourth quarter a year earlier. Income from discontinued operations related to OSRAM was 54 million compared to 65 million in the prior-year period. OSRAM reported a 6% revenue increase compared to the fourth quarter a year earlier, and 7% growth on an organic basis, on demand for general and specialty lighting products.

 

 

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Siemens      4

 

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

 

Strong year-end cash

performance in the Sectors

Free cash flow at the Sector level climbed to 4.256 billion in the fourth quarter, up 17% from an already high level in the same period a year earlier. Industry was the primary contributor to the increase, due to higher Sector profit and positive effects from net working capital management. Free cash flow from continuing operations increased from 2.931 billion in the prior-year period to 3.480 billion in the current quarter, due mainly to the exceptionally strong cash performance at the Sector level.

Free cash flow from discontinued operations was a negative 57 million compared to a positive 24 million in the fourth quarter a year ago. The change year-over-year is related primarily to OSRAM.

ROCE increases on higher income

from continuing operations

On a continuing basis, ROCE (adjusted) rose to 17.6% in the fourth quarter, up from 0.2% a year earlier. The increase was due mainly to higher income from continuing operations compared to the prior-year period, when ROCE was burdened by the 1.204 billion (pre-tax) in impairments at Healthcare. To a lesser extent, ROCE (adjusted) rose also on a reduction in average capital employed compared to the prior-year period.

Pension plan underfunding

increases

The underfunding of Siemens’ pension plans as of September 30, 2011 amounted to approximately 6.5 billion, compared to an underfunding of approximately 5.4 billion at the end of the third quarter. The change was due to an increase in Siemens’ defined benefit obligation (DBO) resulting from a decrease in the discount rate assumption as of September 30, 2011, and from accrued service and interest costs. The underfunding mentioned above included approximately 0.3 billion related to Osram as of September 30, 2011. A year earlier, pension plan underfunding as of September 30, 2010 amounted to 7.4 billion.

 

 

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Sectors      5

 

Industry Sector

 

Profit tops 1 billion on

broad-based revenue growth

In a strong year-end quarter, the Industry Sector increased its profit to 1.041 billion, with Industry Automation and Drive Technologies Divisions accounting for the majority of Sector profit for the quarter. All Divisions in the Sector contributed higher profit in the current period, while profit in the prior-year period was held back by charges of 125  million related to a project engagement with a local partner in the U.S. and 113 million in charges related to staff reduction measures.

Double-digit revenue growth at Industry Automation and Drive Technologies drove revenue for the Sector up 8%. On a geographic basis, revenue was up in all three reporting regions. Industry Automation and Drive Technologies also generated double-digit increases in orders compared to the same quarter a year earlier. Due to a high basis of comparison at Industry Solutions in the prior-year period, fourth-quarter orders for the Sector increased only slightly year-over-year. On a regional basis, orders were up 13% in Europe/CAME and nearly level in Asia, Australia, while a decline in the Americas was due primarily to the high basis of comparison just noted for Industry Solutions. For the Sector as a whole, currency translation effects took 3 percentage points from reported growth in both revenue and orders. Industry’s book-to-bill ratio was 0.93 and its order backlog was 32 billion at the end of the quarter.

Profit hits new high,

all regions show growth

Industry Automation led all Divisions in the Sector with profit of 398 million, up 23% compared to the same quarter a year earlier. On the strength of 13% revenue growth, the Division kept capacity utilization high and improved its business mix year-over-year. For comparison, profit in the prior-year period benefited from a gain of 19  million on the sale of a business. Orders climbed 10%, with increases in all regions led by double-digit growth in Asia, Australia. Revenue also rose in all three reporting regions, with double-digit increases in Europe/CAME and the Americas. Purchase price allocation (PPA) effects related to the fiscal 2007 acquisition of UGS Corp. (UGS) were 34 million in the current period compared to 39 million a year earlier.

Broad-based growth

drives profit higher

Fourth-quarter profit at Drive Technologies climbed to 307 million. Profit development was influenced by continued spending for R&D and, to a lesser extent, negative effects related to commodities as described earlier. For comparison, profit in the prior-year period was burdened by 28 million related to staff reduction measures. Revenue rose 16% in the current quarter, driving capacity utilization higher. Revenue growth came from all regions, including double-digit increases in Europe/CAME and Asia, Australia. Orders jumped 30% compared to the fourth quarter a year ago, on increases in all regions led by strong demand in the Americas.

 

 

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Sectors      6

 

 

Order development also included an internal order from the Mobility Division, which won a 3.7 billion rolling stock order in the third quarter.

Stable profit and

revenue growth

Building Technologies contributed 135 million to Sector profit in the fourth quarter, nearly unchanged compared to the prior-year quarter.

Both periods included burdens on profit, including negative effects related to commodities in the current period as described earlier, and 20 million in charges related to staff reduction measures in the prior-year quarter. Revenue rose 6% year-over-year, on revenue increases in all regions led by Asia, Australia. Orders were up 2%, as growth in the Americas more than offset declines in Asia, Australia and Europe/CAME.

Profit climbs on order

conversion in metals

Profit at Industry Solutions reached 87 million in the fourth quarter. In the same period a year earlier, the Division posted a loss after taking 125 million in charges related to a project engagement with a local partner in the U.S. and 62 million in charges related to staff reduction measures. Fourth-quarter revenue rose 6%, driven by conversion of the Division’s strong order backlog in its metals technologies business. Orders showed a decline compared to the prior-year period, which included two major orders in the Americas.

Continued solid performance

Mobility took its profit up to 125 million in the fourth quarter. Revenue declined 3% and orders were up 1% compared to the same quarter a year earlier.

 

 

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Sectors      7

Energy Sector

 

Broad-based revenue growth,

profit impact from impairment

The Energy Sector reported profit of 631 million, significantly lower than a year earlier due primarily to impairment charges of 231 million at the Sector’s solar business. Energy also increased spending for R&D associated with business expansion.

Conversion of the Sector’s strong order backlog took fourth-quarter revenue up 7% year-over-year. All Divisions contributed to the revenue increase, led by double-digit growth at Renewable Energy and Oil & Gas. On a regional basis, revenue rose in all regions with the highest increases recorded in Asia, Australia. Strong fourth-quarter orders included two major contract wins for offshore wind farms at Renewable Energy, but still came in 3% lower than the prior-year period which included a higher volume from major orders in other Divisions, primarily in Fossil Power Generation. Orders climbed in the Americas and were lower in Asia, Australia and Europe/CAME. Negative currency translation effects took 4 percentage points from reported revenue growth and 3 percentage points from reported order growth in the quarter. The book-to-bill ratio was 1.13, and Energy’s order backlog was 58 billion at the end of the fourth quarter.

Profit climbs on

strong project execution

Fossil Power Generation led all Siemens Divisions with 407 million in fourth-quarter profit, a 10% increase year-over-year driven by excellent project execution in the solutions business. A less favorable business mix compared to recent periods included a lower contribution from the service business. Revenue rose 5% compared to the prior-year period on conversion of orders from the Division’s strong order backlog. As expected, new orders came in substantially below the prior-year period after four consecutive quarters of particularly strong order intake. For comparison, the fourth quarter a year ago included a significantly higher volume from major orders in both the solutions and service businesses.

Strong growth in wind,

impairments at solar business

Renewable Energy continued its growth trend in the fourth quarter and recorded new highs for both revenue and orders. Fourth-quarter revenue came in 18% higher year-over-year. New orders were up 67% from the prior-year period, including a substantially higher volume from major orders. The largest contract wins were for two large offshore wind-farms from customers in Denmark and Germany. The Division also won several large orders for onshore wind-farms from other countries, further improving its regional balance. The wind power business maintained its earnings contribution year-over-year,

 

 

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Sectors      8

 

 

despite continuing pricing pressure. During the quarter Siemens completed an assessment of the growth prospects and long-term market development for the concentrated solar power business. Following completion of the impairment test, the solar business took impairment charges totaling 231 million in the fourth quarter, including 128 million for goodwill. Along with continued operational losses in the solar business, this resulted in a loss for Renewable

Energy in the fourth quarter.

Service business leads

revenue and profit higher

Profit at Oil & Gas rose to 129 million on a 14% increase in revenue, including a revenue-driven earnings increase in the service business. Fourth-quarter orders for the Division came in slightly below the prior-year level.

Continued pricing pressure

holds back profit

Power Transmission delivered

revenue and orders at nearly the same levels as in the fourth quarter a year earlier, but saw its profit decline to 154 million due in part to ongoing pricing pressure. This effect was strongest in the transformers and high-voltage substation businesses, which have attracted new market entrants based in lower-cost countries. In addition, profit was held back by significant negative effects related to commodities as described earlier.

Stable revenue and profit,

continued focus on R&D

Power Distribution contributed 104 million in profit in the fourth quarter, after another increase in R&D spending, including on new technologies such as smart grids. Revenue rose 2% compared to the prior-year period, while fourth-quarter orders came in 3% lower year-over-year.

 

 

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Sectors      9

Healthcare Sector

 

Strong year-end

profit performance

The Healthcare Sector took fourth-quarter profit up to 494  million,

including a strong earnings performance from its major imaging and therapy systems businesses. For comparison, the Sector’s loss of 796 million in the fourth quarter a year ago included charges for impairments totaling 1.204 billion at Diagnostics and 96 million in charges related to the particle therapy business. In the current period, a loss of 32 million on the sale of a healthcare IT business in France was largely offset by the release of reserves totaling 26 million related to a customer loan and receivables in the audiology business. The Sector expects burdens on profit in coming quarters from measures aimed at improving its competitive position.

Profit at Diagnostics was 63 million, compared to a loss of 1.142 billion in the fourth quarter a year ago due to the impairments mentioned above. PPA effects related to past acquisitions at the diagnostics business were 42  million in the current quarter, compared to 47 million a year earlier. Operational challenges are expected to continue in coming quarters.

Fourth-quarter revenue for Healthcare was nearly unchanged year-over-year, and orders were up slightly. The imaging and therapy systems businesses delivered solid growth in both revenue and orders. For the Sector as a whole, negative currency translation effects took 5 percentage points from reported revenue growth and 4 percentage points from reported order growth in the quarter. The book-to-bill ratio was 1.12, and Healthcare’s order backlog was 7 billion at the end of the fourth quarter. On a geographic basis, 11% revenue growth in Asia, Australia and modest growth in the Americas offset a decline in Europe/CAME. Orders grew even faster in Asia, Australia, with a 25% increase compared to the prior-year period. Europe/CAME posted a small increase and orders fell in the Americas. On a global basis, emerging markets delivered 6% revenue growth and 20% order growth.

Revenue and orders at Diagnostics for the current quarter reached their highest quarterly levels in fiscal 2011, but came in 4% below the respective prior-year levels. Revenue was 935 million and orders were 930 million, down from 978  million and 968  million, respectively, in the fourth quarter a year earlier. Negative currency translation effects took 5 percentage points from reported growth for both revenue and orders. On a geographic basis, revenue and orders both showed a double-digit increase in Asia, Australia, which was more than offset by declines in the other two reporting regions.

 

 

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Equity Investments and Financial Services      10

 

Equity Investments and Financial Services

 

Lower Loss from

Equity Investments

Equity Investments posted a loss of 49 million in the fourth quarter compared to a loss of 181 million in the same period a year earlier. The difference is related primarily to Siemens’ stake in Nokia Siemens Networks B.V. (NSN), which resulted in an equity investment loss of 76 million compared to a loss of 241 million in the prior-year period. NSN reported to Siemens that it recorded

restructuring charges and integration costs totaling 26 million in the current quarter compared to 49 million in the prior-year period, and continues to face broad business and market challenges in implementing its strategy.

At the end of the fourth quarter, in order to strengthen NSN’s financial

position, Nokia and Siemens each provided new equity of 500 million and received preferred shares in return. The increase in equity did not change the existing shareholding ratio between Nokia and Siemens. Results from Equity Investments are expected to remain volatile in coming quarters, including material impacts related to repositioning activities at NSN.

 

 

Financial Services launches

growth strategy

In the fourth quarter, Financial Services (SFS) generated 123 million in profit (defined as income before income taxes). For comparison, profit of 136 million in the prior-year period benefited from net gains related to various investments. In the current period, SFS announced a growth strategy which includes even stronger

support for the operating businesses of Siemens, leading to increased expenses and to higher net cash outflows at the end of the quarter primarily relating to growth in the commercial finance business. These higher net cash outflows, which had no significant impact on Free cash flow, primarily led to an increase in

Total assets to 14.602 billion.

In October 2011, after the close of the fourth quarter, SFS sold part of its stake in Bangalore International Airport Limited, a public-private partnership, reducing its participation from 40% to 26%. SFS recorded a high-double-digit million gain.

 

 

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Centrally Managed Portfolio Activities, Corporate Activities and Eliminations      11

 

Centrally Managed Portfolio Activities, Corporate Activities and Eliminations

 

 

Lower loss from Centrally

managed portfolio activities

Centrally managed portfolio activities posted a loss of 23 million in the fourth quarter. For comparison, the loss of 85 million in the same quarter a year earlier included a net loss of 92 million related to the electronics assembly systems business, due primarily to provision of 106  million recorded in connection with an expected loss from the sale of the business. That sale was announced in the fourth quarter of fiscal 2010 and closed in the second quarter of fiscal 2011. While both periods under review included losses related to former business activities of Siemens IT Solutions and Services, which were not classified as discontinued operations and were therefore reclassified as Centrally managed portfolio activities, these losses were higher in the current period.

Higher gains on

real estate disposals

Income before income taxes at Siemens Real Estate (SRE) was 2 million in the fourth quarter, up from a loss of 25 million in the same period a year earlier. The current quarter included higher gains related to disposals of real estate. Siemens has now completed its multi-year program of bundling real estate assets into SRE. SRE expects to continue with real estate disposals depending on market conditions.

Lower net expenses for

Corporate items and pensions

Corporate items and pensions totaled a negative 414 million in the fourth quarter, compared to a negative 545 million in the same period a year earlier. Within this change, Corporate items improved to a negative 432 million from a negative 515 million in the fourth quarter a year earlier. The current period includes an amount of 53 million related to reimbursements to AtoS S.A. (AtoS), which will continue in coming quarters during the post-closing transition phase as AtoS becomes Siemens’ external IT service provider. In addition, Corporate items included a provision of 54 million relating to regional risks.

The prior-year period included expenses of 267 million related to special remuneration for non-management employees, which were allocated primarily to the Sectors in the first quarter of fiscal 2011. In addition, the prior-year period included charges related to legal and regulatory matters, partly offset by a gain on the divestment of a business.

Centrally carried pension expense swung to a positive 18  million from a negative 29 million in the prior-year period, due primarily to lower interest costs and a higher expected return on plan assets.

Improved result from

Corporate Treasury

Income before income taxes from Eliminations, Corporate Treasury and other reconciling items was a positive 24 million in the fourth quarter, compared to a negative 162 million in the same period a year earlier. This improvement was due mainly to Corporate Treasury activities, which benefited from changes in the fair market value of interest rate and foreign currency derivatives not qualifying for hedge accounting.

 


 

Divestment of Siemens IT Solutions and Services      12

Outlook        

 

Divestment of Siemens IT Solutions and Services

 

In December 2010, Siemens and AtoS signed an option agreement which granted AtoS the right to acquire Siemens IT Solutions and Services. In February 2011, AtoS exercised its option to acquire Siemens IT Solutions and Services in exchange for 12.5 million newly issued shares in AtoS with a five-year lock-up commitment, a five-year convertible bond of 250 million (nominal value) and a cash payment of 177 million. Furthermore, Siemens is providing extensive support in order to foster Siemens IT Solutions and Services’ business success including, among others, up to 250 million for integration and training costs as well as further protections and guarantees. Related to the transaction is a seven-year outsourcing contract worth around 5.5 billion, under which AtoS will provide

managed services and

system integration to Siemens. In order to reimburse AtoS for additional costs, which arise in the post-closing transition phase as AtoS becomes Siemens’ external IT service provider, Siemens will pay approximately 200 million over the next two years. Therein in the fourth quarter of fiscal 2011 is an amount of 53 million taken within continuing operations and reported in Corporate Items.

Following signing, Siemens classified Siemens IT Solutions and Services as held for disposal and as discontinued operations. Closing of the transaction was on July 1, 2011 following clearance of the transaction by the relevant antitrust authorities and the approval from AtoS’ shareholders on July 1, 2011. The transaction resulted in a negative pretax earnings impact of

903 million in fiscal 2011. In particular, this negative earnings impact consists of impairments and restructuring charges of 909 million booked in the first three quarters of fiscal 2011. In the fourth quarter, a gain of 6 million was recognized upon deconsolidation of Siemens IT Solutions and Services. In addition to these transaction-related results, and as previously disclosed, Siemens took charges in fiscal 2011 related to establishing Siemens IT Solutions and Services as a separate legal group. Charges reported within discontinued operations related to carve-out activities were 14 million for the quarter and 90 million for the full fiscal year. Charges related to personnel-related matters within discontinued operations were 9 million for the quarter and 78 million in fiscal 2011. Siemens expects the transaction to result in substantial cash outflows in coming quarters.

 

 

Outlook for fiscal 2012

 

For fiscal 2012 we expect moderate organic revenue growth compared to fiscal 2011, and orders again exceeding revenues for a book-to-bill well above 1. We anticipate continued strong earnings performances in our businesses, despite ongoing pricing pressure and higher operating expenses. We set our goal for fiscal 2012 income from continuing operations based on the high level we achieved in the prior year, excluding the net positive effect of 1.0 billion related to Areva that lifted income to 7.0 billion in fiscal 2011. Our expectations for income include anticipated profit impacts related to repositioning activities at NSN and in the Healthcare Sector and higher pension expenses.

This outlook excludes significant portfolio effects and impacts related to legal and regulatory matters. It is also conditional on continued revenue growth, particularly for businesses that are sensitive to short-term changes in the economic environment.

 


 

Notes and Forward-Looking Statements      13

 

Notes and Forward-Looking Statements

 

All figures are preliminary and unaudited. This Earnings Release should be read in conjunction with information Siemens published today regarding legal proceedings.

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

Publications & Events.

New orders and order backlog; adjusted or organic growth rates of revenue and new 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; 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 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’ 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.

 

 

Starting today at 9.00 a.m. CET, we will provide a live video webcast of the annual press conference with CEO Peter Löscher and CFO Joe Kaeser. You can access the webcast at www.siemens.com/pressconference.

The accompanying slide presentation can also be viewed here, and a recording of the conference will subsequently be made available as well.

Also today at 4.00 p.m. CET, you can follow a conference in English with analysts and investors live on the Internet by going to www.siemens.com/analystconference.

Effective October 1, 2011 the operating businesses of Siemens are organized in the four Sectors Energy, Healthcare, Industry and Infrastructure & Cities.

On December 2, 2011 Siemens will provide historical comparable financial figures in the new structure on the Investor Relations homepage www.siemens.com/investor/en/.

This document contains forward-looking statements and information — that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” or words of similar meaning. Such statements are based on 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. In particular, Siemens is strongly affected by changes in general economic and business conditions as these directly impact its processes, customers and suppliers. This may negatively impact our revenue development and the realization of greater capacity utilization as a result of growth. Yet due to their diversity, not all of Siemens’ businesses are equally affected by changes in economic conditions; considerable differences exist in the timing and magnitude of the effects of such changes. This effect is amplified by the fact that, as a global company, Siemens is active in countries with economies that vary widely in terms of growth rate. Uncertainties arise from, among other things, the risk of customers delaying the conversion of recognized orders into revenue or cancelling recognized orders, of prices declining as a result of adverse market conditions by more than is currently anticipated by Siemens’ management or of functional costs increasing in anticipation of

growth that is not realized as expected. Other factors that may cause Siemens’ results to deviate from expectations include developments in the financial markets, including fluctuations in interest and exchange rates (in particular in relation to the US$, British £ and the currencies of emerging markets such as China, India and Brazil), in commodity and equity prices, in debt prices (credit spreads) and in the value of financial assets generally. Any changes in interest rates or other assumptions used in calculating obligations for pension plans and similar commitments may impact Siemens’ defined benefit obligations and the anticipated performance of pension plan assets resulting in unexpected changes in the funded status of Siemens’ pension and other post-employment benefit plans. Any increase in market volatility, deterioration in the capital markets, decline in the conditions for the credit business, uncertainty related to the subprime, financial market and liquidity crises, including the sovereign debt crisis in the Eurozone, or fluctuations in the future financial performance of the major industries served by Siemens may have unexpected effects on Siemens’ results. Furthermore, Siemens faces risks and uncertainties in connection with: disposing of business activities, certain strategic reorientation measures, including reorganization measures relating to its segments; the performance of its equity interests and strategic alliances; the challenge of integrating major acquisitions, implementing joint ventures and other significant portfolio measures; the performance, measurement criteria and composition of its environmental portfolio; the introduction of competing products or technologies by other companies or market entries by new competitors;

 


 

Notes and Forward-Looking Statements      14

changing competitive dynamics (particularly in developing markets); the risk that new products or services will not be accepted by customers targeted by Siemens; changes in business strategy; the interruption of our supply chain, including the inability of third parties to deliver parts, components and services on time resulting for example from natural disasters; the outcome of pending investigations, legal proceedings and actions resulting from the findings of, or related to the subject matter of, such investigations; the potential impact of such investigations and proceedings on Siemens’ business, including its relationships with governments and other customers; the potential impact of such matters on Siemens’ financial statements, and various other factors. More detailed information about certain of the risk factors affecting Siemens is contained throughout this report and in Siemens’ 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 may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens neither intends to, nor assumes any obligation to, update or revise these forward-looking statements in light of developments which differ from those anticipated.

 


SIEMENS

SEGMENT INFORMATION (continuing operations — preliminary and unaudited)

As of and for the three months ended September 30, 2011 and 2010

(in millions of )

 

     New 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)
 
     2011     2010     2011      2010      2011     2010     2011     2010     2011     2010     9/30/11     9/30/10     2011     2010     2011     2010     2011     2010  

Sectors

                                      

Industry

     8,610        8,585        8,818         8,207         395        327        9,213        8,534        1,041        684        7,904        7,823        1,704        1,142        282        272        206        217   

Energy

     8,775        9,061        7,647         7,174         98        86        7,745        7,260        631        903        1,257        805        1,920        1,793        268        252        187        126   

Healthcare

     3,812        3,798        3,396         3,384         11        29        3,407        3,413        494        (796     11,264        11,952        632        694        93        96        160        231   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Sectors

     21,197        21,443        19,861         18,765         504        442        20,365        19,207        2,166        791        20,425        20,580        4,256        3,630        643        620        553        575   

Equity Investments

                                                               (49     (181     3,382        3,319                                             

Financial Services (SFS)

     224        190        215         179         9        11        224        190        123        136        14,602        12,506        65        77        27        13        60        87   

Reconciliation to Consolidated Financial Statements

                                      

Centrally managed portfolio activities

     92        185        100         199         2        12        102        211        (23     (85     (397     (457     (3     (45     2        9        2        3   

Siemens Real Estate (SRE)(6)

     597        533        105         130         493        404        597        534        2        (25     4,974        5,067        (102     (15     173        121        76        97   

Corporate items and pensions

     100        144        70         130         44        42        114        173        (414     (545     (9,141     (9,644     (115     (53     26        22        16        26   

Eliminations, Corporate Treasury and other reconciling items

     (1,054     (907                     (1,052     (911     (1,052     (911     24        (162     70,398        71,455        (621     (663     (1     (3     (11     (14
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Siemens

     21,157        21,589        20,351         19,403                       20,351        19,403        1,829        (70     104,243        102,827        3,480        2,931        869        782        696        774   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

 

(1) This supplementary information on New orders is provided on a voluntary basis. It is not part of the Consolidated Financial Statements subject to the audit 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.

 

(6) As of September 30, 2010, Total assets of SRE amounts to 4,554 million after netting of certain intercompany finance receivables with certain intercompany finance liabilities.

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

 

1


SIEMENS

SEGMENT INFORMATION (continuing operations — preliminary and unaudited)

As of and for the fiscal years ended September 30, 2011 and 2010

(in millions of )

 

    New 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)
 
    2011     2010     2011     2010     2011     2010     2011     2010     2011     2010     9/30/11     9/30/10     2011     2010     2011     2010     2011     2010  

Sectors

                                   

Industry

    37,594        30,243        31,635        29,093        1,306        1,109        32,941        30,203        3,618        2,658        7,904        7,823        3,475        3,208        676        565        786        784   

Energy

    34,765        30,122        27,285        25,205        322        315        27,607        25,520        4,141        3,361        1,257        805        2,937        4,322        634        579        525        447   

Healthcare

    13,116        12,872        12,463        12,281        54        83        12,517        12,364        1,334        653        11,264        11,952        1,887        2,296        284        328        645        709   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Sectors

    85,476        73,237        71,382        66,579        1,682        1,508        73,064        68,087        9,093        6,673        20,425        20,580        8,299        9,826        1,594        1,472        1,956        1,940   

Equity Investments

                                                            (26     (191     3,382        3,319        116        402                               

Financial Services (SFS)

    961        787        908        724        54        63        961        787        428        443        14,602        12,506        344        330        60        95        265        334   

Reconciliation to Consolidated Financial Statements

                                   

Centrally managed portfolio activities

    473        760        510        666        10        30        520        696        (40     (169     (397     (457     (86     (155     6        16        7        12   

Siemens Real Estate
SRE(6)

    2,204        1,941        415        490        1,792        1,438        2,207        1,928        150        250        4,974        5,067        (240     9        453        328        272        296   

Corporate items and pensions

    449        606        300        519        151        137        451        656        (273     (702     (9,141     (9,644     (1,168     (1,069     62        57        60        74   

Eliminations, Corporate Treasury and other reconciling items

    (3,982     (3,275                   (3,689     (3,176     (3,689     (3,176     (90     (331     70,398        71,455        (1,381     (2,300     (4     (13     (50     (59
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Siemens

    85,582        74,055        73,515        68,978                      73,515        68,978        9,242        5,974        104,243        102,827        5,885        7,043        2,171        1,954        2,510        2,598   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

 

(1) This supplementary information on New orders is provided on a voluntary basis. It is not part of the Consolidated Financial Statements subject to the audit 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.

 

(6) As of September 30, 2010, Total assets of SRE amounts to 4,554 million after netting of certain intercompany finance receivables with certain intercompany finance liabilities.

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

 

2


SIEMENS

CONSOLIDATED STATEMENTS OF INCOME (preliminary and unaudited)

For the three months and the fiscal years ended September 30, 2011 and 2010

(in millions of , per share amounts in )

 

$00,000 $00,000 $00,000 $00,000
       Three months
ended September 30,
       Fiscal years
ended September 30,
 
       2011        2010        2011        2010  

Revenue

         20,351           19,403           73,515             68,978   

Cost of goods sold and services rendered

       (14,573        (14,246        (51,388        (48,977
    

 

 

      

 

 

      

 

 

      

 

 

 

Gross profit

       5,778           5,157             22,127           20,001   

Research and development expenses

       (1,154        (1,085        (3,925        (3,558

Marketing, selling and general administrative expenses

       (2,799        (2,744        (10,297        (9,666

Other operating income

       111           191           555           839   

Other operating expense

       (182        (1,388        (502        (1,554

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

       (25        (82        147           9   

Interest income

       566           541           2,207           2,045   

Interest expense

       (438        (450        (1,716        (1,759

Other financial income (expense), net

       (28        (210        646           (383
    

 

 

      

 

 

      

 

 

      

 

 

 

Income from continuing operations before income taxes

       1,829           (70        9,242           5,974   

Income taxes

       (601        28           (2,231        (1,712
    

 

 

      

 

 

      

 

 

      

 

 

 

Income (loss) from continuing operations

       1,228           (42        7,011           4,262   

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

       3           (354        (690        (194
    

 

 

      

 

 

      

 

 

      

 

 

 

Net income (loss)

       1,231           (396        6,321           4,068   
    

 

 

      

 

 

      

 

 

      

 

 

 

Attributable to:

                   

Non-controlling interests

       59           71           176           169   

Shareholders of Siemens AG

       1,172           (467        6,145           3,899   

Basic earnings per share

                   

Income (loss) from continuing operations

       1.33           (0.13        7.82           4.72   

Income (loss) from discontinued operations

       0.01           (0.41        (0.78        (0.23
    

 

 

      

 

 

      

 

 

      

 

 

 

Net income (loss)

       1.34           (0.54        7.04           4.49   
    

 

 

      

 

 

      

 

 

      

 

 

 

Diluted earnings per share

                   

Income (loss) from continuing operations

       1.32           (0.13        7.73           4.67   

Income (loss) from discontinued operations

       0.01           (0.41        (0.77        (0.23
    

 

 

      

 

 

      

 

 

      

 

 

 

Net income (loss)

       1.33           (0.54        6.96           4.44   
    

 

 

      

 

 

      

 

 

      

 

 

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (preliminary and unaudited)

For the three months and the fiscal years ended September 30, 2011 and 2010

(in millions of )

 

$00,000 $00,000 $00,000 $00,000
       Three months
ended September 30,
       Fiscal years
ended September 30,
 
       2011        2010        2011        2010  

Net income (loss)

       1,231           (396        6,321           4,068   

Currency translation differences

       437           (916        129           1,220   

Available-for-sale financial assets

       (44        (6        (59        19   

Derivative financial instruments

       (185        504           (121        (149

Actuarial gains and losses on pension plans and similar commitments

       (864        (411        (65        (2,054
    

 

 

      

 

 

      

 

 

      

 

 

 

Other comprehensive income, net of tax(1)

       (656        (829        (116        (964
    

 

 

      

 

 

      

 

 

      

 

 

 

Total comprehensive income

       575           (1,225        6,205           3,104   
    

 

 

      

 

 

      

 

 

      

 

 

 

Attributable to:

                   

Non-controlling interests

       78           21           169           212   

Shareholders of Siemens AG

       497           (1,246        6,036           2,892   

 

 

 

(1) Includes income (expense) resulting from investments accounted for using the equity method of 7 million and
(26) million, respectively, for the three months ended September 30, 2011 and 2010 and 8 million and 24  million, respectively, for the fiscal years ended September 30, 2011 and 2010.

 

3


SIEMENS

CONSOLIDATED STATEMENTS OF CASH FLOW (preliminary and unaudited)

For the three months ended September 30, 2011 and 2010

(in millions of )

 

     Three months
ended September 30,
 
     2011     2010  

Cash flows from operating activities

    

Income from continuing operations

     1,228        (42

Adjustments to reconcile net income to cash provided

    

Amortization, depreciation and impairments (1)

     824        1,919   

Income taxes

     601        (28

Interest (income) expense, net

     (128     (91

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

     (33     40   

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

     (40     (50

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

     1        15   

(Income) losses from investments (2)

     47        152   

Other non-cash (income) expenses

     (145     320   

Change in current assets and liabilities

    

(Increase) decrease in inventories

     1,001        765   

(Increase) decrease in trade and other receivables

     (312     (251

(Increase) decrease in other current assets

     36        (203

Increase (decrease) in trade payables

     943        538   

Increase (decrease) in current provisions

     133        219   

Increase (decrease) in other current liabilities

     474        851   

Change in other assets and liabilities

     (122     127   

Additions to assets held for rental in operating leases

     (134     (201

Income taxes paid

     (307     (594

Dividends received

     58        41   

Interest received

     224        186   
  

 

 

   

 

 

 

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

     4,349        3,713   

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

     20        224   
  

 

 

   

 

 

 

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

     4,369        3,937   

Cash flows from investing activities

    

Additions to intangible assets and property, plant and equipment

     (869     (782

Acquisitions, net of cash acquired

     (57     3   

Purchases of investments (2)

     (544     (252

Purchases of current available-for-sale financial assets

     (87     (13

(Increase) decrease in receivables from financing activities

     (1,175     (219

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

     142        130   

Proceeds and (payments) from disposals of businesses

     10        55   

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

     25        3   
  

 

 

   

 

 

 

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

     (2,555     (1,075

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

     (270     (214
  

 

 

   

 

 

 

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

     (2,825     (1,289

Cash flows from financing activities

    

Proceeds from re-issuance of treasury stock and proceeds (payments) relating to other transactions with owners

     6        55   

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

     (2,009     (45

Change in short-term debt and other financing activities

     (127     30   

Interest paid

     (111     (94

Dividends paid to non-controlling interest holders

     (14     (94

Financing discontinued operations (3)

     (256     7   
  

 

 

   

 

 

 

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

     (2,511     (141

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

     250        (10
  

 

 

   

 

 

 

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

     (2,261     (151

Effect of exchange rates on cash and cash equivalents

     28        (209

Net increase (decrease) in cash and cash equivalents

     (689     2,288   

Cash and cash equivalents at beginning of period

     13,201        11,939   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

     12,512        14,227   

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

     44        119   
  

 

 

   

 

 

 

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

     12,468        14,108   
  

 

 

   

 

 

 

 

 

 

(1) Amortization, depreciation and impairments, in fiscal 2010, include 1,145 million related to the goodwill impairment at Healthcare’s Diagnostics Division.

 

(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.

 

4


SIEMENS

CONSOLIDATED STATEMENTS OF CASH FLOW (preliminary and unaudited)

For the fiscal years ended September 30, 2011 and 2010

(in millions of )

 

     2011     2010  

Cash flows from operating activities

    

Income from continuing operations

     7,011        4,262   

Adjustments to reconcile net income to cash provided

    

Amortization, depreciation and impairments (1)

     2,638        3,743   

Income taxes

     2,231        1,712   

Interest (income) expense, net

     (491     (286

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

     (209     (261

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

     (1,019     (72

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

     (1     13   

(Income) losses from investments (2)

     21        54   

Other non-cash (income) expenses

     70        (57

Change in current assets and liabilities

    

(Increase) decrease in inventories

     (1,135     54   

(Increase) decrease in trade and other receivables

     (609     (53

(Increase) decrease in other current assets

     (428     (155

Increase (decrease) in trade payables

     668        (15

Increase (decrease) in current provisions

     56        551   

Increase (decrease) in other current liabilities

     748        997   

Change in other assets and liabilities

     (350     (206

Additions to assets held for rental in operating leases

     (582     (622

Income taxes paid

     (1,617     (1,877

Dividends received

     267        529   

Interest received

     787        686   
  

 

 

   

 

 

 

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

     8,056        8,997   

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

     (289     352   
  

 

 

   

 

 

 

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

     7,767        9,349   

Cash flows from investing activities

    

Additions to intangible assets and property, plant and equipment

     (2,171     (1,954

Acquisitions, net of cash acquired

     (300     (434

Purchases of investments (2)

     (889     (398

Purchases of current available-for-sale financial assets

     (102     (138

(Increase) decrease in receivables from financing activities

     (1,770     (192

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

     2,108        585   

Proceeds and (payments) from disposals of businesses

     177        172   

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

     38        44   
  

 

 

   

 

 

 

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

     (2,909     (2,315

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

     (1,135     (532
  

 

 

   

 

 

 

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

     (4,044     (2,847

Cash flows from financing activities

    

Proceeds from re-issuance of treasury stock and proceeds (payments) relating to other transactions with owners

     (764     147   

Proceeds from issuance of long-term debt

     113          

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

     (2,046     (45

Change in short-term debt and other financing activities

     227        (725

Interest paid

     (475     (437

Dividends paid

     (2,356     (1,388

Dividends paid to non-controlling interest holders

     (158     (191

Financing discontinued operations(3)

     (1,408     (187
  

 

 

   

 

 

 

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

     (6,867     (2,826

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

     1,424        180   
  

 

 

   

 

 

 

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

     (5,443     (2,646

Effect of exchange rates on cash and cash equivalents

     5        167   

Net increase (decrease) in cash and cash equivalents

     (1,715     4,023   

Cash and cash equivalents at beginning of period

     14,227        10,204   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

     12,512        14,227   

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

     44        119   
  

 

 

   

 

 

 

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

     12,468        14,108   
  

 

 

   

 

 

 

 

 

 

(1) Amortization, depreciation and impairments, in fiscal 2010, include 1,145 million related to the goodwill impairment at Healthcare’s Diagnostics Division.

 

(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.

 

 

5


SIEMENS

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (preliminary and unaudited)

As of September 30, 2011 and 2010

(in millions of )

 

     9/30/11     9/30/10  

ASSETS

    

Current assets

    

Cash and cash equivalents

     12,468        14,108   

Available-for-sale financial assets

     477        246   

Trade and other receivables

     14,847        15,502   

Other current financial assets

     2,899        2,610   

Inventories

     15,143        14,950   

Income tax receivables

     798        790   

Other current assets

     1,264        1,258   

Assets classified as held for disposal

     4,917        715   
  

 

 

   

 

 

 

Total current assets

     52,813        50,179   
  

 

 

   

 

 

 

Goodwill

     15,706        15,763   

Other intangible assets

     4,444        4,969   

Property, plant and equipment

     10,477        11,748   

Investments accounted for using the equity method

     4,966        4,724   

Other financial assets

     11,855        10,765   

Deferred tax assets

     3,206        3,940   

Other assets

     776        739   
  

 

 

   

 

 

 

Total assets

     104,243        102,827   
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Current liabilities

    

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

     3,660        2,416   

Trade payables

     7,677        7,899   

Other current financial liabilities

     2,247        1,401   

Current provisions

     5,168        5,138   

Income tax payables

     2,032        1,816   

Other current liabilities

     21,020        21,794   

Liabilities associated with assets classified as held for disposal

     1,756        146   
  

 

 

   

 

 

 

Total current liabilities

     43,560        40,610   
  

 

 

   

 

 

 

Long-term debt

     14,280        17,497   

Pension plans and similar commitments

     7,307        8,464   

Deferred tax liabilities

     595        577   

Provisions

     3,654        3,332   

Other financial liabilities

     824        971   

Other liabilities

     1,867        2,280   
  

 

 

   

 

 

 

Total liabilities

     72,087        73,731   
  

 

 

   

 

 

 

Equity

    

Common stock, no par value (1)

     2,743        2,743   

Additional paid-in capital

     6,011        5,986   

Retained earnings

     25,881        22,998   

Other components of equity

     (68     (8

Treasury shares, at cost (2)

     (3,037     (3,373
  

 

 

   

 

 

 

Total equity attributable to shareholders of Siemens AG

     31,530        28,346   
  

 

 

   

 

 

 

Non-controlling interests

     626        750   
  

 

 

   

 

 

 

Total equity

     32,156        29,096   
  

 

 

   

 

 

 

Total liabilities and equity

     104,243        102,827   
  

 

 

   

 

 

 

 

 

 

(1) Authorized: 1,117,803,421 and 1,111,513,421 shares, respectively.
     Issued: 914,203,421 and 914,203,421 shares, respectively.

 

(2) 39,952,074 and 44,366,416 shares, respectively.

 

6


SUPPLEMENTAL DATA

SIEMENS

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

New orders, Revenue, Profit, Profit margin developments and growth rates for Sectors and Divisions

For the three months ended September 30, 2011 and 2010

(in millions of )

 

    New orders     Revenue     Profit(1)(2)     Profit margin  
    2011     2010     % Change     therein     2011     2010     % Change     therein     2011     2010     % Change     2011     2010  
                Act-
ual
    Adj-
usted(3)
    Cur-
rency
    Port-
folio
                Act-
ual
    Adj-
usted(3)
    Cur-
rency
    Port-
folio
                               

Sectors and Divisions

                                 

Industry Sector

    8,610        8,585        0     3     (3 )%      0     9,213        8,534        8     11     (3 )%      0     1,041        684        52     11.3     8.0

Industry Automation

    1,887        1,723        10     11     (3 )%      1     2,058        1,816        13     14     (3 )%      2     398        323        23     19.3     17.8

Drive Technologies

    2,248        1,735        30     32     (3 )%      0     2,337        2,014        16     19     (3 )%      0     307        268        14     13.1     13.3

Building Technologies

    2,059        2,021        2     6     (4 )%      0     2,059        1,949        6     9     (4 )%      0     135        134        0     6.6     6.9

Industry Solutions

    1,612        2,056        (22 )%      (18 )%      (3 )%      (1 )%      1,755        1,659        6     12     (4 )%      (2 )%      87        (131     n/a        4.9     (7.9 )% 

Mobility

    1,643        1,621        1     2     (2 )%      1     1,711        1,756        (3 )%      (2 )%      (2 )%      1     125        102        23     7.3     5.8

Energy Sector

    8,775        9,061        (3 )%      0     (3 )%      0     7,745        7,260        7     11     (4 )%      0     631        903        (30 )%      8.1     12.4

Fossil Power Generation

    2,348        3,533        (34 )%      (31 )%      (3 )%      0     2,616        2,499        5     9     (4 )%      0     407        371        10     15.6     14.8

Renewable Energy

    2,429        1,454        67     72     (5 )%      0     1,157        977        18     27     (8 )%      0     (154     97        n/a        (13.3 )%      9.9

Oil & Gas

    1,445        1,466        (1 )%      0     (3 )%      2     1,351        1,180        14     16     (2 )%      1     129        118        10     9.6     10.0

Power Transmission

    1,820        1,848        (1 )%      2     (3 )%      0     1,885        1,879        0     4     (4 )%      0     154        214        (28 )%      8.2     11.4

Power Distribution

    927        959        (3 )%      0     (4 )%      0     964        943        2     6     (4 )%      0     104        118        (12 )%      10.8     12.5

Healthcare Sector

    3,812        3,798        0     5     (4 )%      0     3,407        3,413        0     4     (5 )%      0     494        (796     n/a        14.5     (23.3 )% 

therein: Diagnostics

    930        968        (4 )%      1     (5 )%      0     935        978        (4 )%      0     (5 )%      0     63        (1,142     n/a        6.7     (116.8 )% 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

Total Sectors

    21,197        21,443        (1 )%      2     (3 )%      0     20,365        19,207        6     10     (4 )%      0     2,166        791        174    
 

 

 

   

 

 

           

 

 

   

 

 

           

 

 

   

 

 

       

 

 

 

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

 

(2) Beginning with fiscal 2011, central infrastructure costs which were formerly reported in Corporate items will be allocated primarily to the Sectors. The total amount to be allocated is determined at the beginning of the fiscal year and is charged in set portions in all four quarters. Presentation of prior-year information has been adjusted to conform to the current-year presentation.

 

(3) Excluding currency translation and portfolio effects.

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

 

7


SUPPLEMENTAL DATA

SIEMENS

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

New orders, Revenue, Profit, Profit margin developments and growth rates for Sectors and Divisions

For the fiscal years ended September 30, 2011 and 2010

(in millions of )

 

    New orders     Revenue     Profit(1)(2)     Profit margin  
    2011     2010     % Change     therein     2011     2010     % Change     therein     2011     2010     % Change     2011     2010  
                Actual     Adju-
sted(3)
    Curr-
ency
    Port-
folio
                Actual     Adju-
sted(3)
    Curr-
ency
    Port-
folio
                               

Sectors and Divisions

                                 

Industry Sector

    37,594        30,243        24     24     0     0     32,941        30,203        9     9     0     0     3,618        2,658        36     11.0     8.8

Industry Automation

    7,490        6,421        17     15     0     1     7,461        6,226        20     18     0     2     1,415        1,004        41     19.0     16.1

Drive Technologies

    9,065        6,981        30     29     1     0     8,224        6,960        18     18     0     0     1,087        803        35     13.2     11.5

Building Technologies

    7,662        7,132        7     8     0     0     7,441        6,903        8     8     0     0     409        401        2     5.5     5.8

Industry Solutions

    6,150        6,203        (1 )%      2     (1 )%      (2 )%      6,024        6,040        0     3     (1 )%      (3 )%      276        (10     n/a        4.6     (0.2 )% 

Mobility

    10,224        5,885        74     72     1     1     6,328        6,508        (3 )%      (4 )%      0     0     429        463        (7 )%      6.8     7.1

Energy Sector

    34,765        30,122        15     15     0     0     27,607        25,520        8     9     (1 )%      0     4,141        3,361        23     15.0     13.2

Fossil Power Generation

    12,487        9,920        26     26     (1 )%      0     10,203        9,550        7     8     (1 )%      0     2,833        1,445        96     27.8     15.1

Renewable Energy

    6,884        5,929        16     17     (1 )%      0     3,932        3,272        20     24     (4 )%      0     (2     343        n/a        (0.0 )%      10.5

Oil & Gas

    5,551        4,943        12     10     2     1     4,719        4,156        14     12     1     1     467        455        3     9.9     10.9

Power Transmission

    7,271        6,770        7     8     0     0     6,334        6,143        3     4     0     0     562        715        (21 )%      8.9     11.6

Power Distribution

    3,397        3,231        5     5     (1 )%      0     3,175        3,039        4     4     0     0     286        398        (28 )%      9.0     13.1

Healthcare Sector

    13,116        12,872        2     2     0     0     12,517        12,364        1     2     0     0     1,334        653        104     10.7     5.3

therein: Diagnostics

    3,678        3,664        0     1     0     0     3,667        3,667        0     0     0     0     300        (804     n/a        8.2     (21.9 )% 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

Total Sectors

    85,476        73,237        17     17     0     0     73,064        68,087        7     8     0     0     9,093        6,673        36    
 

 

 

   

 

 

           

 

 

   

 

 

           

 

 

   

 

 

       

 

 

 

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

 

(2) Beginning with fiscal 2011, central infrastructure costs which were formerly reported in Corporate items will be allocated primarily to the Sectors. The total amount to be allocated is determined at the beginning of the fiscal year and is charged in set portions in all four quarters. Presentation of prior-year information has been adjusted to conform to the current-year presentation.

 

(3) Excluding currency translation and portfolio effects.

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

 

8


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 September 30, 2011 and 2010

(in millions of )

 

     Profit(1)(2)     Income (loss)
from investments
accounted for
using the equity
method, net
(3)
    Financial income
(expense), net
(4)
    Adjusted
EBIT
(5)
    Amortization(6)      Depreciation
and impairments
of property, plant
and equipment
and goodwill
(7)
    Adjusted
EBITDA
    Adjusted
EBITDA margin
 
     2011     2010     2011     2010     2011     2010     2011     2010     2011      2010      2011     2010     2011     2010     2011     2010  

Sectors and Divisions

                                  

Industry Sector

     1,041        684        14        5        (3     (1     1,031        680        86         95         120        123        1,237        897        13.4     10.5

Industry Automation

     398        323                                    398        323        43         50         29        29        469        402       

Drive Technologies

     307        268                                    307        268        11         11         45        42        363        322       

Building Technologies

     135        134        2        2        (1            134        133        22         22         21        24        177        179       

Industry Solutions

     87        (131     5               1        1        80        (133     6         7         13        15        100        (111    

Mobility

     125        102        7        3        (4     (3     123        102        4         5         12        11        139        118       

Energy Sector

     631        903        (25     22        2        (6     654        888        48         24         267        102        969        1,014        12.5     14.0

Fossil Power Generation

     407        371        14        14        (6     (3     399        360        5         4         37        37        442        401       

Renewable Energy

     (154     97        (43     1        (3     (1     (107     97        32         8         177        17        102        122       

Oil & Gas

     129        118                      (1     (1     130        119        6         7         18        15        154        140       

Power Transmission

     154        214        4        8        13        (1     137        207        2         3         24        22        164        232       

Power Distribution

     104        118                      (1     (1     105        119        3         3         10        10        117        131       

Healthcare Sector

     494        (796     4        (8     (10     11        501        (799     80         98         80        1,279        661        577        19.4     16.9

therein: Diagnostics

     63        (1,142            (9     1        2        62        (1,135     46         61         55        1,246        163        172       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

     

Total Sectors

     2,166        791        (8     19        (12     3        2,186        769        214         216         468        1,503        2,867        2,488       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

     

Equity Investments

     (49     (181     (50     (188     2        7        (1                                          (1           

Financial Services (SFS)

     123        136        29        64        87        56        7        16        2         3         58        84        67        102       

Reconciliation to Consolidated Financial Statements

                                  

Centrally managed portfolio activities

     (23     (85     4        6               1        (28     (92     1         1         1        2        (26     (90    

Siemens Real Estate (SRE)

     2        (25                   (22     (9     24        (16             1         76        97        100        81       

Corporate items and pensions

     (414     (545                   (23     (54     (391     (491     3         13         13        13        (375     (464    

Eliminations, Corporate Treasury and other reconciling items

     24        (162     (1     18        67        (123     (42     (56                     (11     (14     (54     (70    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

     

Siemens

     1,829        (70     (25     (82     100        (119     1,754        130        220         233         604        1,685        2,578        2,049       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

     

 

 

(1) Profit of the Sectors and Divisions 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) Beginning with fiscal 2011, central infrastructure costs which were formerly reported in Corporate items will be allocated primarily to the Sectors. The total amount to be allocated is determined at the beginning of the fiscal year and is charged in set portions in all four quarters. Presentation of prior-year information has been adjusted to conform to the current-year presentation.

 

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

 

(4) 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.

 

(5) 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.

 

(6) Amortization and impairments, net of reversals, of intangible assets other than goodwill.

 

(7) Depreciation and impairments of property, plant and equipment, net of reversals. Includes impairments of goodwill of 128 million in the current period and 1.145 billion in the prior-year period, respectively.

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

 

9


SUPPLEMENTAL DATA

SIEMENS

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

Reconciliation from Profit / Income before income taxes to adjusted EBITDA

For the fiscal years ended September 30, 2011 and 2010

(in millions of )

 

     Profit(1)(2)     Income (loss)
from investments
accounted for
using the equity
method, net
(3)
    Financial income
(expense),  net
(4)
    Adjusted
EBIT
(5)
    Amortization(6)      Depreciation
and impairments
of property, plant
and equipment
and goodwill
(7)
    Adjusted
EBITDA
    Adjusted
EBITDA margin
 
     2011     2010     2011     2010     2011     2010     2011     2010     2011      2010      2011     2010     2011     2010     2011     2010  

Sectors and Divisions

                                  

Industry Sector

     3,618        2,658        37        13        (11     (14     3,592        2,659        349         346         437        438        4,378        3,444        13.3     11.4

Industry Automation

     1,415        1,004        7        (2     1        3        1,406        1,004        177         183         100        94