Siemens AG — Earnings Release 2007

Jul 25, 2007

News Details

Ad-hoc | 25 July 2007 14:30

Siemens AG: Siemens sells automobile supplier business to Continental for €11.4 billion and intends to acquire Dade Behring for app. USD 7 billion. Siemens is publishing its Q3 FY2007 results.

Siemens Aktiengesellschaft / Strategic Company Decision/Quarter Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Siemens AG is signing an agreement with Continental AG, Hanover, to sell
its entire stake in Siemens VDO Automotive AG (SV). The price is €11.4
billion. The closing of the transaction is subject to approval by the
responsible antitrust authorities and is expected in the current calendar
year. Preparations for the planned IPO of SV will be terminated.

Siemens has signed a merger agreement with US-based Dade Behring Inc.,
Deerfield, Illinois, a leading clinical laboratory diagnostics company.
Siemens intends to acquire all outstanding shares of Dade Behring by
submitting a cash offer to the Dade Behring shareholders of USD 77 per
common share. The planned acquisition has a total transaction volume of
approximately USD 7 billion. Closing is expected in the second quarter of
fiscal year 2008. Completion of the merger is subject to receipt of
regulatory approvals and other customary closing conditions.

Siemens in the third quarter 2007 (ended June 30, 2007)

Orders were €22.147 billion, a 13% increase compared to the third quarter a
year earlier, and revenue rose 8% year-over-year, to €20.176 billion.

Group profit from Operations for the quarter climbed 22% year-over-year, to
€1.504 billion, despite negative equity investment income of €371 million
related to Nokia Siemens Networks (NSN).

Income from continuing operations was €716 million, including the negative
equity investment income related to NSN. For comparison, income from
continuing operations of €1.341 billion in the third quarter a year earlier
benefited from a substantial, non-recurring positive effect at Corporate
Treasury. Basic earnings per share on a continuing basis were €0.75
compared to €1.45 in the prior-year quarter, and diluted earnings per share
were €0.74 compared to €1.11 a year earlier.

Net income was €2.065 billion and basic earnings per share (EPS) were
€2.25, compared to €1.344 billion and €1.45, respectively, in the third
quarter a year earlier. Diluted earnings per share increased to €2.18 from
€1.11 a year earlier. Discontinued operations contributed €1.349 billion to
net income in the current quarter, primarily due to a gain resulting from
the transfer of assets into NSN.

On a continuing basis, free cash flow in the third quarter increased to
€908 million compared to €850 million in the prior-year period, despite
payment of €419 million related to a previously disclosed European
Commission antitrust investigation.

The Q3 FY2007 results deviate from the market expectations.

All figures are preliminary and unaudited.

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Information and Explaination of the Issuer to this News:

Conference call:

On July 25, 2007, at 3.30 p.m. CEST, a conference call for journalists and
at 6.00 p.m. CEST, a conference call for investors and analysts regarding
the recent portfolio changes as well as the quarterly results with CEO
Peter Löscher and CFO Joe Kaeser will be held. The conference call for
investors and analysts will be broadcasted live on the Internet at
www.siemens.com/analystcall. The accompanying slide presentation and a
recording of the conference call will be available at
www.siemens.com/investorrelations.

Disclaimer:

This document contains forward-looking statements and information – that
is, statements related to future, not past, events. These statements may be
identified by words as 'expects,' 'looks forward to,' 'anticipates,'
'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' 'will' or words of
similar meaning. Such statements are based on our current expectations and
certain assumptions, and are, therefore, subject to certain risks and
uncertainties. A variety of factors, many of which are beyond Siemens’
control, affect its operations, performance, business strategy and results
and could cause the actual results, performance or achievements of Siemens
worldwide to be materially different from any future results, performance
or achievements that may be expressed or implied by such forward-looking
statements. For us, particular uncertainties arise, among others, from:
changes in general economic and business conditions (including margin
developments in major business areas); the challenges of integrating major
acquisitions and implementing joint ventures and other significant
portfolio measures; changes in currency exchange rates and interest rates;
introduction of competing products or technologies by other companies; lack
of acceptance of new products or services by customers targeted by Siemens
worldwide; changes in business strategy; the outcome of pending
investigations and legal proceedings; our analysis of the potential impact
of such matters on our financial statements; as well as various other
factors. More detailed information about our risk factors is contained in
Siemens’ 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 does not intend or assume any obligation to update or revise these
forward-looking statements in light of developments which differ from those
anticipated.
DGAP 25.07.2007

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Language: English
Issuer: Siemens Aktiengesellschaft
Wittelsbacherplatz 2
80333 München Deutschland
Phone: +49 (0)89 636-00
Fax: +49 (0)89 636-32908
E-mail: investorrelations@siemens.com
Internet: www.siemens.com
ISIN: DE0007236101
WKN: 723610
Indices: DAX, EURO STOXX 50
Listed: Amtlicher Markt in Berlin, Frankfurt (Prime Standard),
Hannover, München, Hamburg, Düsseldorf, SWX, Stuttgart;
Terminbörse EUREX; Foreign Exchange(s) London, NYSE

End of News DGAP News-Service

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