Siemens AG — Earnings Release 2016

Aug 4, 2016

Munich, Germany, August 4, 2016

Earnings Release Q3 FY 2016 April 1 to June 30, 2016

Strong execution drives growth and profitability – earnings outlook raised

»We are making good progress with execution of Vision 2020 and in the third quarter again achieved convincing results, particularly compared to the market. I am proud of my global team which delivered excellent performance, especially with regard to growth, in an increasingly difficult market environment,« said Joe Kaeser, President and Chief Executive Officer of Siemens AG.

• Large orders in Europe and the Americas drive third-quarter orders up 6% year-over-year, to €21.1 billion; revenue 5% higher at €19.8 billion, for a book-to-bill ratio of 1.06
• Excluding currency translation effects, orders rose 10% and revenue was 9% higher
• Industrial Business profit climbs 20% year-over-year, to €2.2 billion; significant margin expansion takes Industrial Business profit margin up to 10.8%
• Net income of €1.4 billion, level with the prior-year quarter which benefited from favorable interest rates within continuing operations and positive tax effects within discontinued operations; basic earnings per share (EPS) of €1.64 compared to €1.65 in Q3 FY 2015

Siemens

	Q3		% Change
(in millions of €)	FY 2016	FY 2015	Actual	Comp.
Orders	21,060	19,858	6%	9%
Revenue	19,804	18,844	5%	7%
Profit Industrial Business	2,191	1,819	20%
therein: severance	(69)	(172)
Profit margin Industrial Business	10.8%	9.5%
excl. severance	11.2%	10.4%
Income from continuing operations	1,337	1,245	7%
therein: severance	(82)	(274)
Net income	1,372	1,376	0%
Basic earnings per share (in €)	1.64	1.65	0%
Free cash flow (continuing and discontinued operations)	1,822	684	166%
ROCE (continuing and discontinued operations)	13.7%	14.9%

• Negative currency translation effects took four percentage points from order development and three percentage points from revenue growth; portfolio effects added one percentage point to order growth and two percentage points to revenue development
• Large orders, particularly in Power and Gas and Wind Power and Renewables, continued to drive order growth
• Industrial Business order backlog with new high at €116 billion
• Revenue increase driven by double-digit growth in Power and Gas and in Wind Power and Renewables
• Profit Industrial Business: improvements in a majority of the Divisions, particularly in Power and Gas, Energy Management and Wind Power and Renewables; market headwinds still ongoing for Process Industries and Drives
• Income from continuing operations rose on higher Industrial Business profit, partly offset by factors outside Industrial Business. These factors included a negative swing related to a major asset retirement obligation, due primarily to lower interest rates; an increase in interest expenses, resulting from issuance of debt; and higher income tax expenses, due mainly to a low basis of comparison in Q3 FY 2015
• Net income: income from discontinued operations of €35 million compared to €131 million in Q3 FY 2015, which benefited from positive tax effects related to previously divested businesses
• Increase in Free cash flow from Industrial Business, to €1.914 billion from €1.157 billion in Q3 FY 2015, driven by Power and Gas and Energy Management due mainly to positive effects from working capital management
• Cash outflows of €0.9 billion related to the acquisition of CDadapco; payments are not part of Free cash flow
• ROCE declined due to a clear increase in average capital employed, mainly resulting from the acquisition of Dresser-Rand at the end of Q3 FY 2015
• Underfunding of Siemens' pension plans as of June 30, 2016: €12.7 billion (March 31, 2016: €10.9 billion); increased due mainly to lower discount rate assumptions, partly offset by positive returns on plan assets

Power and Gas

		% Change
FY 2016	FY 2015	Actual	Comp.
4,512	3,585	26%	23%
4,321	3,279	32%	22%
480	285	69%
9	(41)
(14)	−
11.1%	8.7%
11.2%	9.9%
		Q3

Wind Power and Renewables

		Q3	% Change
(in millions of €)	FY 2016	FY 2015	Actual	Comp.
Orders	2,729	693	> 200%	> 200%
Revenue	1,722	1,416	22%	30%
Profit	143	51	178%
therein: severance	1	(2)
Profit margin	8.3%	3.6%
excl. severance	8.3%	3.8%

Energy Management

	Q3		% Change
(in millions of €)	FY 2016	FY 2015	Actual	Comp.
Orders	3,102	3,464	(10)%	(6)%
Revenue	2,894	2,964	(2)%	2%
Profit	240	110	119%
therein: severance	(6)	(30)
Profit margin	8.3%	3.7%
excl. severance	8.5%	4.7%

• Substantially higher order intake driven by large orders particularly in the turnkey business, including orders related to a combined-cycle power plant in the U.S. totaling €0.7 billion, including service, and the expansion of three thermal plants in Bolivia totaling €0.5 billion
• Revenue growth driven by strong execution from the backlog particularly including recent large orders from Egypt
• Portfolio effects added eight percentage points to order development and 13 percentage points to revenue growth
• Continuing strong profit contribution from the service business, including positive effects from the measurement of inventories; Q3 FY 2015 included charges of €106 million related to a project resulting from higher costs for materials and from customer delays
• Overcapacities continue to create an aggressive competitive environment, resulting in increased price pressure in most regional markets
• Higher volume from large orders, including a €1.4 billion order for an offshore wind-farm, including service, in the U.K. and a €0.5 billion order for an offshore wind-farm in Germany; order backlog at a new high
• Revenue also reaches a new high on a quarterly basis, on substantial growth including increases in both offshore and onshore new unit businesses as well as in the service business
• Strong profitability includes higher revenue, a more favorable revenue mix, and lower production and installation costs
• In June 2016, Siemens and Gamesa Corporación Tecnológica SA (Gamesa) signed binding agreements to merge the Siemens wind power business, including service, with Gamesa. Siemens will own 59% of the shares of the combined entity. The transaction is subject to approval by Gamesa's shareholders and other customary conditions
• Lower orders in the region comprising Europe, C.I.S., Africa and the Middle East (Europe/CAME) due to the Middle East where the solutions business won several large orders in Q3 FY 2015; sharp growth in Asia, Australia including a large order in the ultra high-voltage direct current (UHVDC) transformer business
• Revenue increase in the Americas, declines in the other two reporting regions, including negative effects from currency translation
• Continuing broad-based profitability improvements, mainly in the solutions and high voltage products businesses; Q3 FY 2015 included a higher proportion of projects with low profit margins

Building Technologies

		Q3	% Change
(in millions of €)	FY 2016	FY 2015	Actual	Comp.
Orders	1,658	1,544	7%	10%
Revenue	1,536	1,496	3%	5%
Profit	140	119	18%
therein: severance	(3)	(11)
Profit margin	9.1%	8.0%
excl. severance	9.3%	8.7%

Order growth in all reporting regions and across the Division's businesses, including significant contract wins for projects in the U.S. and Europe

• Revenue grew in the Americas and Europe/CAME, while Asia, Australia reported a moderate decline due to currency translation effects
• Profit rises on higher revenue and improved profitability in the Division's product business

Mobility

		Q3	% Change
(in millions of €)	FY 2016	FY 2015	Actual	Comp.
Orders	1,112	2,821	(61)%	(59)%
Revenue	1,795	1,817	(1)%	2%
Profit	158	105	51%
therein: severance	(4)	(30)
Profit margin	8.8%	5.8%
excl. severance	9.1%	7.4%

Digital Factory

		Q3	% Change
(in millions of €)	FY 2016	FY 2015	Actual	Comp.
Orders	2,563	2,557	0%	1%
Revenue	2,519	2,507	0%	2%
Profit	395	423	(7)%
therein: severance	(13)	(9)
Profit margin	15.7%	16.9%
excl. severance	16.2%	17.2%

• Sharply lower volume from large orders; Q3 FY 2015 included a €1.6 billion order from Russia
• Revenue includes growth from execution of large rolling stock projects, offset by lower revenue in the rail infrastructure business

• Increase in profit year-over-year was due to lower severance expenses and positive effects from larger contracts

• Continued order and revenue growth in the product lifecycle management (PLM) software business, supported by the acquisition of CD-adapco which closed in April 2016; volume from short-cycle businesses remains near Q3 FY 2015 level despite negative currency translation effects

• On a regional basis, orders grew in Europe/CAME and Asia, Australia while they declined in the Americas; revenue was up in Europe/CAME and declined in Asia, Australia, particularly in China, and in the Americas
• Profitability was held back by deferred revenue adjustments, transaction and integration costs related to the acquisition of CD-adapco totaling €39 million

Process Industries and Drives

		Q3	% Change
(in millions of €)	FY 2016	FY 2015	Actual	Comp.
Orders	2,117	2,248	(6)%	(3)%
Revenue	2,247	2,410	(7)%	(3)%
Profit	101	178	(43)%
therein: severance	(39)	(33)
Profit margin	4.5%	7.4%
excl. severance	6.2%	8.7%

Lower orders and revenue due to weak demand in commodity-related industries, only partly offset by growth in the wind power components business

• Ongoing weakness in oil and gas and other commodityrelated markets led to overcapacities which take down profit
• Previously announced capacity adjustments are expected to burden profit in the fourth quarter of fiscal 2016

Healthineers

		Q3	% Change
(in millions of €)	FY 2016	FY 2015	Actual	Comp.
Orders	3,382	3,318	2%	5%
Revenue	3,230	3,246	0%	2%
Profit	534	549	(3)%
therein: severance	(13)	(16)
Profit margin	16.5%	16.9%
excl. severance	16.9%	17.4%

• Order increase resulted mainly from the diagnostic imaging business and, on a regional basis, from Asia, Australia, particularly strong in China
• Moderate revenue growth in the diagnostic imaging business; offset by declines in other businesses, partially due to negative currency translation effects
• Continued strong earnings performance from the diagnostic imaging business

Financial Services

	Q3
(in millions of €)	FY 2016	FY 2015
Income before income taxes	139	116
therein: severance	(2)	−
ROE (after taxes)	17.4%	15.7%
(in millions of €)	Jun 30, 2016	Sep 30, 2015
Total assets	25,138	24,970

Reconciliation to Consolidated Financial Statements

Q3
FY 2016	FY 2015
(107)	(47)
	91
	(89)
	(119)
	(131)
	(76)
	(369)
	107 (65) (104) (178) (130) (478)

Increased income before income taxes due primarily to a lower level of credit hits

Growth in total assets was held back by substantial early terminations of financings

• Centrally managed portfolio activities (CMPA): a negative result related to a major asset retirement obligation due primarily to lower interest rates; ongoing equity investment loss from Siemens' stake in Primetals Technologies Ltd. which is operating in a difficult market environment
• Results of CMPA are expected to remain volatile in coming quarters
• Eliminations, Corporate Treasury and other reconciling items: results included higher interest expenses driven by US\$7.75 billion in bonds issued end of May 2015

Outlook

We raise our previous expectation for basic EPS from net income in the range of €6.00 to €6.40 to the range of €6.50 to €6.70. We continue to expect for fiscal 2016 moderate revenue growth, net of effects from currency translation. We continue to anticipate that orders will materially exceed revenue for a book-to-bill ratio clearly above 1. For our Industrial Business, we continue to expect a profit margin of 10% to 11%.

This outlook excludes charges related to legal and regulatory matters.

Notes and forward-looking statements

Starting today at 8:30 a.m. CEST, the conference call for journalists at which Siemens CEO Joe Kaeser and Siemens CFO Ralf P. Thomas discuss the quarterly figures will be broadcast live at www.siemens.com/conferencecall.

Starting today at 9:45 a.m. CEST, the conference call for analysts and investors with Joe Kaeser and Ralf P. Thomas can be followed live at www.siemens.com/analystcall.

Recordings of the conference call for journalists and the conference call for analysts and investors will subsequently be made available as well.

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

This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens' management, of which many are beyond Siemens' control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Risks in the Annual Report. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

This document includes – in IFRS not clearly defined – supplemental financial measures that are or may be non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens' net assets and financial positions or results of operations 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.

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

This document is a Quarterly Statement according to § 51a of the Exchange Rules for the Frankfurter Wertpapierbörse.

Financial Media: Alexander Becker Phone: +49 89 636-36558 E-mail: becker.alexander@siemens.com

Wolfram Trost Phone: +49 89 636-34794 E-mail: wolfram.trost@siemens.com

Siemens AG, 80333 Munich, Germany

© 2016 by Siemens AG, Berlin and Munich

Financial Results

Third Quarter and First Nine Months of Fiscal 2016

siemens.com

Key figures

(in millions of €, except where otherwise stated)

Volume

	Q3			% Change	Q1 - Q3			% Change
	FY 2016	FY 2015	Actual	Comp.1	FY 2016	FY 2015	Actual	Comp.1
Orders	21,060	19,858	6%	9%	66,155	58,624	13%	12%
Revenue	19,804	18,844	5%	7%	57,691	54,308	6%	4%
Book-to-billratio	1.06				1.15
Order backlog (Industrial Business, in billions of €)	116				116

Profitability and Capital efficiency

	Q3			Q1 - Q3
	FY 2016	FY 2015	% Change	FY 2016	FY 2015	% Change
Industrial Business
Profit	2,191	1,819	20%	6,297	5,290	19%
Profit margin	10.8%	9.5%		10.7%	9.6%
Continuing operations
EBITDA	2,672	1,897	41%	7,721	7,599	2%
Income from continuing operations	1,337	1,245	7%	4,215	4,347	(3)%
Basic earnings per share (in €)2	1.60	1.49	7%	5.07	5.19	(2)%
Continuing and discontinued operations
Net income	1,372	1,376	0%	4,408	6,379	(31)%
Basic earnings per share (in €)2	1.64	1.65	0%	5.31	7.65	(31)%
Return on capital employed (ROCE)	13.7%	14.9%		15.0%	24.4%

Capital structure and Liquidity

		Jun 30, 2016		Sep 30, 2015
Total equity (Shareholders of Siemens AG)		33,005		34,474
Industrial net debt		12,685		6,107
Industrial net debt / EBITDA3		1.2
	Q3 FY 2016	Q3 FY 2015	Q1 - Q3 FY 2016	Q1 - Q3 FY 2015
Free cash flow
Continuing operations	1,839	756	1,954	593
Continuing and discontinued operations	1,822	684	1,906	300

Employees

	Jun 30, 2016	Sep 30, 2015
Number of employees (in thousands)	349	348
Germany	113	114
Outside Germany	236	234

² Basic earnings per share – attributable to shareholders of Siemens AG. For fiscal 2016 and 2015 weighted average shares outstanding ⁴ Continuing and discontinued operations. (basic) (in thousands) for the third quarter amounted to 809,539 and 823,119 and for the first nine months to 808,722 and 826,891 shares, respectively.

¹ Throughout excluding currency translation and portfolio effects. ³ For the interim calculation, EBITDA is annualized.

Consolidated Statements of Income

	Q3		Q1- Q3
(in millions of €, per share amounts in €)	FY 2016	FY 2015	FY 2016	FY 2015
Revenue	19,804	18,844	57,691	54,308
Cost of sales	(13,813)	(13,535)	(40,095)	(38,441)
Gross profit	5,991	5,309	17,597	15,867
Research and development expenses	(1,200)	(1,122)	(3,410)	(3,219)
Selling and general administrative expenses	(2,911)	(2,937)	(8,640)	(8,311)
Other operating income	126	109	222	321
Other operating expenses	(35)	(79)	(240)	(245)
Income (loss) from investments accounted for using the equity method, net	18	(15)	171	1,361
Interest income	322	330	978	936
Interest expenses	(245)	(211)	(741)	(572)
Otherfinancial income (expenses), net	(214)	181	(303)	(465)
Income fromcontinuing operations beforeincome taxes	1,853	1,566	5,632	5,673
Income tax expenses	(516)	(321)	(1,417)	(1,325)
Income fromcontinuing operations	1,337	1,245	4,215	4,347
Income from discontinued operations, net of income taxes	35	131	194	2,032
Net income	1,372	1,376	4,408	6,379
Attributable to:
Non-controlling interests	43	18	111	56
Shareholders of Siemens AG	1,329	1,357	4,298	6,323
Basic earnings per share
Income from continuing operations	1.60	1.49	5.07	5.19
Income from discontinued operations	0.04	0.16	0.24	2.46
Net income	1.64	1.65	5.31	7.65
Diluted earnings per share
Income from continuing operations	1.58	1.47	5.01	5.13
Income from discontinued operations	0.04	0.16	0.24	2.43
Net income	1.62	1.63	5.24	7.56

Consolidated Statements of Comprehensive Income

	Q3		Q1- Q3
(in millions of €)	FY 2016	FY 2015	FY 2016	FY 2015
Net income	1,372	1,376	4,408	6,379
Remeasurements of defined benefit plans	(1,262)	1,295	(2,578)	(194)
therein: Income tax effects	528	(866)	1,024	4
Items that will not be reclassified toprofit orloss	(1,262)	1,295	(2,578)	(194)
therein: Income (loss)from investments accounted for using the equity method, net	(5)	(29)	—	(49)
Currency translation differences	49	(512)	(611)	1,862
Available-for-sale financial assets	49	(16)	62	330
therein: Income tax effects	3	(3)	13	(17)
Derivative financial instruments	1	142	148	(151)
therein: Income tax effects	(1)	(54)	(65)	52
Items that may be reclassified subsequently toprofit orloss	99	(385)	(401)	2,042
therein: Income (loss)from investments accounted for using the equity method, net	(33)	123	(155)	190
Other comprehensive income, net ofincome taxes	(1,163)	910	(2,979)	1,848
Total comprehensive income	208	2,286	1,430	8,227
Attributable to:
Non-controlling interests	44	(3)	107	103
Shareholders of Siemens AG	164	2,288	1,323	8,123

Consolidated Statements of Financial Position

(in millions of €) 2 0 1 6 2 0 1 5 Assets Cash and cash equivalents 6 , 3 8 0 9 , 9 5 7 Available-for-sale financial assets 1 , 2 5 8 1 , 1 7 5 Trade and other receivables 1 6 , 5 6 0 1 5 , 9 8 2 Other currentfinancial assets 6 , 0 7 6 5 , 1 5 7 Inventories 1 9 , 2 0 0 1 7 , 2 5 3 Currentincome tax assets 8 3 7 6 4 4 Other current assets 1 , 2 8 8 1 , 1 5 1 Assets classified as held for disposal 1 0 3 1 2 2 Total current assets 5 1 , 7 0 2 5 1 , 4 4 2 Goodwill 2 4 , 3 5 1 2 3 , 1 6 6 Otherintangible assets 7 , 8 6 8 8 , 0 7 7 Property, plant and equipment 9 , 9 5 4 1 0 , 2 1 0 Investments accounted for using the equity method 3 , 0 6 5 2 , 9 4 7 Otherfinancial assets 1 9 , 8 4 3 2 0 , 8 2 1 Deferred tax assets 2 , 9 2 3 2 , 5 9 1 Other assets 1 , 1 7 8 1 , 0 9 4 Total non-current assets 6 9 , 1 8 3 6 8 , 9 0 6 Total assets 1 2 0 , 8 8 5 1 2 0 , 3 4 8 Liabilities and equity Short-term debt and current maturities of long-term debt 5 , 9 1 4 2 , 9 7 9 Trade payables 7 , 5 0 5 7 , 7 7 4 Other currentfinancial liabilities 2 , 1 0 4 2 , 0 8 5 Current provisions 4 , 2 6 1 4 , 4 8 9 Currentincome tax liabilities 1 , 6 9 1 1 , 8 2 8 Other currentliabilities 2 0 , 3 7 7 2 0 , 3 6 8 Liabilities associated with assets classified as held for disposal 2 9 3 9 Total currentliabilities 4 1 , 8 8 1 3 9 , 5 6 2 Long-term debt 2 2 , 7 8 8 2 6 , 6 8 2 Post-employment benefits 1 3 , 5 3 7 9 , 8 1 1 Deferred tax liabilities 5 3 8 6 0 9 Provisions 5 , 0 0 9 4 , 8 6 5 Otherfinancial liabilities 1 , 3 3 5 1 , 4 6 6 Otherliabilities 2 , 2 7 1 2 , 2 9 7 Total non-currentliabilities 4 5 , 4 8 0 4 5 , 7 3 0 Total liabilities 8 7 , 3 6 1 8 5 , 2 9 2 Equity Issued capital 2 , 5 5 0 2 , 6 4 3 Capital reserve 5 , 8 1 0 5 , 7 3 3 Retained earnings 2 6 , 4 2 2 3 0 , 1 5 2 Other components of equity 1 , 7 6 6 2 , 1 6 3 Treasury shares, at cost ( 3 , 5 4 3 ) ( 6 , 2 1 8 ) Total equity attributable toshareholders of Siemens AG 3 3 , 0 0 5 3 4 , 4 7 4 Non-controlling interests 5 2 0 5 8 1 Total equity 3 3 , 5 2 4 3 5 , 0 5 6 Total liabilities and equity 1 2 0 , 8 8 5 1 2 0 , 3 4 8	Jun 30,	Sep 30,

Consolidated Statements of Cash Flows

	Q3
(in millions of €)	FY 2016	FY 2015
Cash flows fromoperating activities
Net income	1,372	1,376
Adjustments to reconcile net income to cash flows from operating activities - continuing operations
Income from discontinued operations, net of income taxes	(35)	(131)
Amortization, depreciation and impairments	682	631
Income tax expenses	516	321
Interest (income) expenses, net	(77)	(120)
(Income)loss related to investing activities	(139)	(101)
Other non-cash (income) expenses	(7)	189
Change in operating net working capital
Inventories	(503)	(749)
Trade and other receivables	(311)	(878)
Trade payables	309	106
Billings in excess of costs and estimated earnings on uncompleted contracts and related advances	(135)	178
Additions to assets leased to others in operating leases	(111)	(116)
Change in other assets and liabilities	877	828
Income taxes paid	(493)	(722)
Dividends received	93	77
Interest received	304	300
Cash flows fromoperating activities - continuing operations	2,342	1,190
Cash flows from operating activities - discontinued operations	(16)	(71)
Cash flows fromoperating activities - continuing and discontinued operations	2,326	1,118
Cash flows frominvesting activities
Additions to intangible assets and property, plant and equipment	(504)	(434)
Acquisitions of businesses, net of cash acquired	(849)	(6,848)
Purchase of investments	(22)	(210)
Purchase of current available-for-sale financial assets	(276)	(205)
Change in receivables from financing activities	368	(200)
Disposal of investments, intangibles and property, plant and equipment	131	117
Disposal of businesses, net of cash disposed	—	83
Disposal of current available-for-sale financial assets	249	168
Cash flows frominvesting activities - continuing operations	(903)	(7,529)
Cash flows from investing activities - discontinued operations	(13)	9
Cash flows frominvesting activities - continuing and discontinued operations	(916)	(7,521)
Cash flows fromfinancing activities
Purchase of treasury shares	(77)	(756)
Othertransactions with owners	—	12
Issuance of long-term debt	—	7,088
Repayment of long-term debt (including current maturities of long-term debt)	(8)	(338)
Change in short-term debt and other financing activities	(1,031)	283
Interest paid	(265)	(183)
Dividends attributable to non-controlling interests	(23)	(43)
Cash flows fromfinancing activities - continuing operations	(1,404)	6,063
Cash flows from financing activities - discontinued operations	—	—
Cash flows fromfinancing activities - continuing and discontinued operations	(1,404)	6,063
Effect of changes in exchange rates on cash and cash equivalents	67	(298)
Change in cash and cash equivalents	73	(637)
Cash and cash equivalents at beginning of period	6,307	8,845
Cash and cash equivalents at end of period	6,381	8,207
Less: Cash and cash equivalents of assets classified as held for disposal and discontinued operations at end of period	—	1
Cash and cash equivalents at end ofperiod (Consolidated Statements of Financial Position)	6,380	8,206

Consolidated Statements of Cash Flows

	Q1- Q3
(in millions of €)	FY 2016	FY 2015
Cash flows fromoperating activities
Net income	4,408	6,379
Adjustments to reconcile net income to cash flows from operating activities - continuing operations
Income from discontinued operations, net of income taxes	(194)	(2,032)
Amortization, depreciation and impairments	2,022	1,826
Income tax expenses	1,417	1,325
Interest (income) expenses, net	(237)	(364)
(Income)loss related to investing activities	(359)	(1,655)
Other non-cash (income) expenses	246	28
Change in operating net working capital
Inventories	(1,987)	(1,905)
Trade and other receivables	(744)	(877)
Trade payables	(273)	(857)
Billings in excess of costs and estimated earnings on uncompleted contracts and related advances	655	542
Additions to assets leased to others in operating leases	(330)	(301)
Change in other assets and liabilities	(1,114)	128
Income taxes paid	(1,357)	(1,702)
Dividends received	232	402
Interest received	884	846
Cash flows fromoperating activities - continuing operations	3,272	1,783
Cash flows from operating activities - discontinued operations	(47)	(253)
Cash flows fromoperating activities - continuing and discontinued operations	3,224	1,530
Cash flows frominvesting activities
Additions to intangible assets and property, plant and equipment	(1,318)	(1,190)
Acquisitions of businesses, net of cash acquired	(912)	(8,244)
Purchase of investments	(127)	(544)
Purchase of current available-for-sale financial assets	(784)	(566)
Change in receivables from financing activities	(48)	(1,313)
Disposal of investments, intangibles and property, plant and equipment	285	3,258
Disposal of businesses, net of cash disposed	10	465
Disposal of current available-for-sale financial assets	718	367
Cash flows frominvesting activities - continuing operations	(2,176)	(7,767)
Cash flows from investing activities - discontinued operations	264	2,898
Cash flows frominvesting activities - continuing and discontinued operations	(1,912)	(4,869)
Cash flows fromfinancing activities
Purchase of treasury shares	(362)	(1,848)
Othertransactions with owners	(13)	14
Issuance of long-term debt	—	7,149
Repayment of long-term debt (including current maturities of long-term debt)	(474)	(349)
Change in short-term debt and other financing activities	(288)	1,563
Interest paid	(642)	(433)
Dividends paid to shareholders of Siemens AG	(2,827)	(2,728)
Dividends attributable to non-controlling interests	(185)	(108)
Cash flows fromfinancing activities - continuing operations	(4,791)	3,261
Cash flows from financing activities - discontinued operations	—	5
Cash flows fromfinancing activities - continuing and discontinued operations	(4,791)	3,266
Effect of changes in exchange rates on cash and cash equivalents	(98)	246
Change in cash and cash equivalents	(3,577)	173
Cash and cash equivalents at beginning of period	9,958	8,034
Cash and cash equivalents at end of period	6,381	8,207
Less: Cash and cash equivalents of assets classified as held for disposal and discontinued operations at end of period	—	1
Cash and cash equivalents at end ofperiod (Consolidated Statements of Financial Position)	6,380	8,206

Overview of Segment figures

				Orders	Revenue				Profit Profit margin / SFS: ROE			Net capital employed /	SFS: Total assets	Free cash flow
		Q3		% Change		Q3		% Change	Q3		Q3		Jun 30,	Sep 30,	Q3
(in millions of €)	FY 2016	FY 2015	Actual	Comp.	FY 2016	FY 2015	Actual	Comp.	FY 2016	FY 2015	FY 2016	FY 2015	2016	2015	FY 2016	FY 2015
Power and Gas	4,512	3,585	26%	23%	4,321	3,279	32%	22%	480	285	11.1%	8.7%	9,676	8,871	395	119
Wind Power and Renewables	2,729	693	> 200%	> 200%	1,722	1,416	22%	30%	143	51	8.3%	3.6%	16	(346)	(192)	(222)
Energy Management	3,102	3,464	(10)%	(6)%	2,894	2,964	(2)%	2%	240	110	8.3%	3.7%	4,642	3,929	198	(74)
Building Technologies	1,658	1,544	7%	10%	1,536	1,496	3%	5%	140	119	9.1%	8.0%	1,396	1,337	163	106
Mobility	1,112	2,821	(61)%	(59)%	1,795	1,817	(1)%	2%	158	105	8.8%	5.8%	3,156	2,526	(109)	(219)
Digital Factory	2,563	2,557	0%	1%	2,519	2,507	0%	2%	395	423	15.7%	16.9%	5,851	4,906	577	559
Process Industries and Drives	2,117	2,248	(6)%	(3)%	2,247	2,410	(7)%	(3)%	101	178	4.5%	7.4%	2,108	2,152	182	191
Healthineers	3,382	3,318	2%	5%	3,230	3,246	0%	2%	534	549	16.5%	16.9%	11,336	11,153	701	695
Industrial Business	21,175	20,230	5%	8%	20,263	19,135	6%	7%	2,191	1,819	10.8%	9.5%	38,181	34,527	1,914	1,157
Financial Services (SFS)	238	287	—	—	238	287	—	—	139	116	17.4%	15.7%	25,138	24,970	163	243
Reconciliation to Consolidated Financial Statements	(354)	(660)	—	—	(697)	(577)	—	—	(478)	(369)	—	—	57,567	60,851	(239)	(644)
Siemens (continuing operations)	21,060	19,858	6%	9%	19,804	18,844	5%	7%	1,853	1,566	—	—	120,885	120,348	1,839	756

Overview of Segment figures

				Orders				Revenue		Profit		Profit margin / SFS: ROE	Net capital employed /	SFS: Total assets		Free cash flow
		Q1- Q3		% Change		Q1- Q3		% Change	Q1- Q3		Q1- Q3		Jun 30,	Sep 30,		Q1- Q3
(in millions of €)	FY 2016	FY 2015	Actual	Comp.	FY 2016	FY 2015	Actual	Comp.	FY 2016	FY 2015	FY 2016	FY 2015	2016	2015	FY 2016	FY 2015
Power and Gas	16,236	10,445	55%	43%	11,926	9,300	28%	12%	1,364	997	11.4%	10.7%	9,676	8,871	372	146
Wind Power and Renewables	6,768	3,420	98%	108%	4,380	4,156	5%	9%	331	88	7.6%	2.1%	16	(346)	(40)	(341)
Energy Management	9,588	9,666	(1)%	1%	8,367	8,449	(1)%	1%	595	311	7.1%	3.7%	4,642	3,929	(195)	(377)
Building Technologies	4,665	4,437	5%	5%	4,458	4,320	3%	3%	382	331	8.6%	7.7%	1,396	1,337	337	298
Mobility	5,601	7,875	(29)%	(28)%	5,754	5,511	4%	5%	504	417	8.8%	7.6%	3,156	2,526	(20)	26
Digital Factory	7,632	7,516	2%	1%	7,385	7,326	1%	1%	1,175	1,217	15.9%	16.6%	5,851	4,906	1,217	1,220
Process Industries and Drives	6,726	6,873	(2)%	(1)%	6,597	6,928	(5)%	(4)%	316	440	4.8%	6.4%	2,108	2,152	387	332
Healthineers	9,977	9,526	5%	5%	9,837	9,309	6%	6%	1,629	1,488	16.6%	16.0%	11,336	11,153	1,402	1,189
Industrial Business	67,191	59,758	12%	11%	58,703	55,298	6%	4%	6,297	5,290	10.7%	9.6%	38,181	34,527	3,459	2,494
Financial Services (SFS)	754	788	—	—	754	788	—	—	533	456	23.8%	21.3%	25,138	24,970	534	710
Reconciliation to Consolidated Financial Statements	(1,791)	(1,922)	—	—	(1,765)	(1,778)	—	—	(1,197)	(73)	—	—	57,567	60,851	(2,039)	(2,611)
Siemens (continuing operations)	66,155	58,624	13%	12%	57,691	54,308	6%	4%	5,632	5,673	—	—	120,885	120,348	1,954	593

EBITDA Reconciliation

		Profit		Amortization of intangible Financial assets acquired in business income combinations (expenses), net				EBIT		Amortization, depreciation and impairments	EBITDA
	Q3		Q3		Q3			Q3		Q3	Q3
(in millions of €)	FY 2016	FY 2015	FY 2016	FY 2015	FY 2016	FY 2015	FY 2016	FY 2015	FY 2016	FY 2015	FY 2016	FY 2015
Power and Gas	48—0	28—5	(6—7)	(22—)	—4	1—5	40—9	24—7	12—1	7—5	53—0	3—23
Wind Power and Renewables	14—3	5—1	(2—)	(2—)	—4	—	13—7	5—0	3—4	3—4	17—1	—84
Energy Management	24—0	11—0	(5—)	(6—)	(—1)	(1—)	23—6	10—5	5—2	5—6	28—8	1—61
Building Technologies	14—0	11—9	(3—)	(4—)	—	—	13—7	11—5	2—1	2—2	15—8	1—36
Mobility	15—8	10—5	(1—5)	(15—)	—4	—2	13—9	8—8	3—3	3—1	17—1	1—19
Digital Factory	39—5	42—3	(3—3)	(25—)	—	—2	36—3	39—7	8—0	7—4	44—2	4—71
Process Industries and Drives	10—1	17—8	(7—)	(11—)	—	—	9—4	16—6	5—4	5—9	14—8	2—25
Healthineers	53—4	54—9	(4—6)	(46—)	—6	—5	48—2	49—8	14—2	14—0	62—3	6—38
Industrial Business	2,19—1	1,81—9	(17—8)	(130—)	1—7	2—3	1,99—6	1,66—6	53—6	49—2	2,53—3	2,1—58
Financial Services (SFS)	13—9	11—6	—	—	16—5	12—5	(25—)	(9—)	5—0	5—6	2—5	—46
Reconciliation to Consolidated Financial Statements	(478—)	(36—9)	17—8	13—0	(31—9)	15—2	1—9	(391—)	9—6	8—3	11—5	— (308)
Siemens (continuing operations)	1,85—3	1,56—6	—	—	(13—7)	30—0	1,99—0	1,26—6	68—2	63—1	2,67—2	1,8—97

EBITDA Reconciliation

		Profit		Amortization of intangible assets acquired in business combinations		Financial income (expenses), net		EBIT		Amortization, depreciation and impairments		EBITDA
	Q1- Q3			Q1- Q3		Q1- Q3		Q1- Q3		Q1- Q3	Q1- Q3
(in millions of €)	FY 2016	FY 2015	FY 2016	FY 2015	FY 2016	FY 2015	FY 2016	FY 2015	FY 2016	FY 2015	FY 2016	FY 2015
Power and Gas	1,36—4	99—7	(18—8)	(55—)	2—0	—7	1,15—5	93—5	39—0	21—6	1,54—5	1,1—52
Wind Power and Renewables	33—1	8—8	(5—)	(5—)	1—3	—9	31—4	7—5	9—9	9—6	41—2	1—71
Energy Management	59—5	31—1	(1—6)	(17—)	1—5	(3—)	56—4	29—7	15—5	16—3	71—9	4—60
Building Technologies	38—2	33—1	(1—0)	(12—)	—	(2—)	37—1	32—1	6—3	6—4	43—5	3—85
Mobility	50—4	41—7	(4—5)	(45—)	—9	—	45—0	37—2	9—6	9—3	54—6	4—65
Digital Factory	1,17—5	1,21—7	(8—0)	(71—)	1—2	—2	1,08—3	1,14—4	21—8	20—6	1,30—1	1,3—50
Process Industries and Drives	31—6	44—0	(2—0)	(34—)	(—2)	(1—)	29—7	40—7	16—2	17—4	46—0	5—81
Healthineers	1,62—9	1,48—8	(13—8)	(134—)	1—4	1—4	1,47—7	1,34—0	42—4	40—3	1,90—1	1,7—43
Industrial Business	6,29—7	5,29—0	(50—3)	(372—)	8—2	2—7	5,71—2	4,89—1	1,60—8	1,41—6	7,32—0	6,3—07
Financial Services (SFS)	53—3	45—6	—1	(1—)	47—5	43—8	6—0	1—7	15—9	16—3	21—9	1—80
Reconciliation to Consolidated Financial Statements	(1,19—7)	(7—3)	50—2	37—4	(62—2)	(565—)	(73—)	86—6	25—5	24—6	18—2	— 1,112
Siemens (continuing operations)	5,63—2	5,67—3	—	—	(6—6)	(101—)	5,69—8	5,77—3	2,02—2	1,82—6	7,72—1	7,5—99

Orders & Revenue by region

				Orders				Revenue
		Q3		% Change		Q3		% Change
(in millions of €)	FY 2016	FY 2015	Actual	Comp.	FY 2016	FY 2015	Actual	Comp.
Europe, C.I.S., Africa, Middle East	10,461	10,462	0%	2%	10,559	9,468	12%	13%
therein: Germany	2,667	2,215	20%	20%	2,459	2,726	(10)%	(10)%
Americas	6,613	5,348	24%	27%	5,684	5,560	2%	3%
therein: U.S.	4,485	4,090	10%	11%	4,179	3,968	5%	3%
Asia, Australia	3,987	4,047	(2)%	4%	3,562	3,817	(7)%	(3)%
therein: China	1,815	1,858	(2)%	12%	1,543	1,805	(15)%	(7)%
Siemens (continuing operations)	21,060	19,858	6%	9%	19,804	18,844	5%	7%
therein: Emerging markets	6,711	8,467	(21)%	(15)%	6,755	6,250	8%	15%

				Orders				Revenue
		Q1- Q3		% Change		Q1- Q3		% Change
(in millions of €)	FY 2016	FY 2015	Actual	Comp.	FY 2016	FY 2015	Actual	Comp.
Europe, C.I.S., Africa, Middle East	37,251	30,433	22%	23%	30,322	28,076	8%	7%
therein: Germany	8,106	8,474	(4)%	(5)%	7,657	8,092	(5)%	(6)%
Americas	17,543	17,315	1%	(3)%	16,553	15,357	8%	3%
therein: U.S.	12,805	11,969	7%	(2)%	12,269	10,639	15%	6%
Asia, Australia	11,360	10,876	4%	4%	10,816	10,874	(1)%	(2)%
therein: China	5,088	4,800	6%	10%	4,645	5,023	(8)%	(8)%
Siemens (continuing operations)	66,155	58,624	13%	12%	57,691	54,308	6%	4%
therein: Emerging markets	23,813	21,357	12%	13%	19,397	17,887	8%	9%