Siemens AG — Earnings Release 2018

Aug 2, 2018

Munich, Germany, August 2, 2018

Earnings Release Q3 FY 2018

April 1 to June 30, 2018

Excellent order growth highlights successful third quarter

»Our global team delivered a strong quarter, highlighted by outstanding order intake, outperforming the market. We diligently address our opportunities and challenges going forward,« said Joe Kaeser, President and Chief Executive Officer of Siemens AG.

• On a comparable basis, excluding currency translation and portfolio effects, orders rose 21% and revenue was level with the prior-year period
• On a nominal basis, orders climbed 16% to €22.8 billion driven by a higher volume from large orders, while revenue came in at €20.5 billion, 4% lower than the prior-year quarter due primarily to currency translation effects; the book-to-bill ratio was 1.11
• Industrial Business profit was up 2% at €2.2 billion and Industrial Business profit margin was 10.7%; excellent performance by Digital Factory and improvements in many Divisions partly offset by a sharp decrease in profit and profitability at Power and Gas
• Net income of €1.2 billion was held back by substantially higher income tax rate compared to Q3 FY 2017, which also benefited from positive effects in Centrally managed portfolio activities; basic earnings per share (EPS) of €1.36 compared to €1.67 in Q3 FY 2017

Siemens

	Q3		% Change
(in millions of €)	FY 2018	FY 2017	Actual	Comp.
Orders	22,802	19,675	16%	21%
Revenue	20,473	21,298	(4)%	0%
Profit Industrial Business	2,209	2,173	2%
therein: severance	(82)	(94)
Profit margin Industrial Business	10.7%	10.1%
excl. severance	11.0%	10.5%
Income from continuing operations	1,164	1,424	(18)%
therein: severance	(138)	(110)
Net income	1,210	1,409	(14)%
Basic earnings per share (in €)	1.36	1.67	(19)%
Free cash flow (continuing and discontinued operations)	879	941	(7)%
ROCE (continuing and discontinued operations)	10.1%	11.6%

• Strong order growth due to a higher volume from large orders in Siemens Gamesa Renewable Energy (SGRE), Power and Gas and Mobility; in addition, higher order intake in nearly all other industrial businesses, led by Digital Factory
• Revenue down due to negative currency translation effects; on a comparable basis, revenue was flat with increases in the majority of industrial businesses offset by significant declines in Power and Gas and SGRE
• The resulting strong book-to-bill ratio of 1.11 lifted the order backlog to a record high of €132 billion
• Negative currency translation effects took five percentage points from order growth and four percentage points from revenue development; portfolio transactions had a minimal effect on volume development year-over-year
• Profit Industrial Business: another excellent quarter for Digital Factory, which delivered both the largest profit contribution and highest profit increase among the industrial businesses, along with a strong performance in other industrial businesses; in contrast, profit in Power and Gas fell sharply due to ongoing adverse market conditions; overall profit and profitability impacted by negative currency effects particularly at Siemens Healthineers, Energy Management and Process Industries and Drives
• Income from continuing operations impacted by substantially higher income tax rate while Q3 FY 2017 benefited from positive effects within Centrally managed portfolio activities (CMPA)
• Net income benefited from a €53 million pre-tax effect within discontinued operations, arising from release of a provision related to former Communications activities
• Substantial increase in Free cash flow from Industrial Business, to €1.802 billion from €1.397 billion in Q3 FY 2017, due mainly to SGRE which recorded a significant build-up of operating net working capital in Q3 FY 2017; this improvement was more than offset by cash outflows outside Industrial Business primarily including a significant contribution to strengthen Siemens' pension assets and further safeguard the post-employment benefits of employees in the U.S.
• Decrease in provisions for pensions and similar obligations, to €7.6 billion as of June 30, 2018 (March 31, 2018: €8.1 billion); decrease due mainly to the significant contribution
• ROCE decreased due to lower net income which more than offset the positive effect of a slight decline in average capital employed

Power and Gas

		Q3	% Change
(in millions of €)	FY 2018	FY 2017	Actual	Comp.
Orders	3,757	2,638	42%	54%
Revenue	3,008	3,809	(21)%	(16)%
Profit	164	370	(56)%
therein: severance	(22)	(26)
Profit margin	5.4%	9.7%
excl. severance	6.2%	10.4%

• Higher volume from large orders which included contracts worth €0.4 billion each for combined-cycle power plants in Israel and the U.K., including service
• Substantial revenue decline with decreases in all reporting regions, particularly in the solutions business which in Q3 FY 2017 recorded higher revenue from large orders in Egypt
• Profit down sharply on lower revenue, price declines and low capacity utilization; continuing strong contribution from the service business which included a gain of €80 million from a divestment
• Global energy trends continue to structurally reduce overall demand in markets for the Division's offerings, resulting in declining new-unit large turbine business and corresponding price pressure due to structural overcapacities and aggressive competitive behavior

Energy Management

		Q3	% Change
(in millions of €)	FY 2018	FY 2017	Actual	Comp.
Orders	2,732	3,030	(10)%	(5)%
Revenue	3,059	3,037	1%	5%
Profit	233	206	13%
therein: severance	(7)	(8)
Profit margin	7.6%	6.8%
excl. severance	7.8%	7.0%

Building Technologies

Q3 % Change (in millions of €) FY 2018 FY 2017 Actual Comp. Orders 1,694 1,609 5% 9% Revenue 1,611 1,608 0% 4% Profit 177 165 7% therein: severance (3) (3) Profit margin 11.0% 10.3% excl. severance 11.2% 10.5%

• Lower volume from large orders in the transmission solutions business
• Revenue growth on a comparable basis led by the high voltage and low voltage products and the transmission solutions businesses; on a regional basis, substantial growth in Asia, Australia

• Profit up despite negative currency effects on improved performance particularly in the low voltage products and transmission solutions businesses

• Order growth was driven by the region comprising Europe, C.I.S., Africa, Middle East (Europe/CAME), including a number of multi-year service contracts in Germany, and the Asia, Australia region

• Revenue growth particularly in the U.S. was largely offset by negative currency translation effects
• Profit and profit margin rose on productivity improvements
• Continued expansion of advanced digital offerings for smart buildings and related IoT applications

Mobility

		Q3	% Change
(in millions of €)	FY 2018	FY 2017	Actual	Comp.
Orders	2,505	2,323	8%	11%
Revenue	2,131	2,052	4%	6%
Profit	177	180	(1)%
therein: severance	−	(7)
Profit margin	8.3%	8.8%
excl. severance	8.3%	9.1%

Digital Factory

		% Change
FY 2018	FY 2017	Actual	Comp.
3,285	3,023	9%	12%
3,259	2,918	12%	13%
681	443	54%
(8)	(30)
20.9%	15.2%
21.1%	16.2%
		Q3

Process Industries and Drives

		% Change
FY 2018	FY 2017	Actual	Comp.
2,413	2,255	7%	11%
2,235	2,182	2%	5%
147	103	43%
−	(8)
6.6%	4.7%
6.6%	5.1%
		Q3

• Higher volume from large orders, particularly €0.7 billion from Siemens' largest-ever rail infrastructure order including service, in Norway
• Revenue growth in the majority of businesses, most notably in the rolling stock and related services businesses within the Europe/CAME region
• Profit close to the prior-year level, impacted by mix effects; profit margin well within the target range
• In July 2018, shareholders of Alstom SA approved the proposed combination of Alstom with Siemens' mobility business (including its rail traction drive business which is part of the Division Process Industries and Drives); closing of the transaction is subject to approval by antitrust authorities and is expected in the first half of calendar 2019
• Strong volume growth with increases in all businesses; excellent development in the short-cycle businesses, which again outperformed the market and in the product lifecycle management (PLM) software business, driven by significant contract wins for Mentor
• On a geographic basis, growth in all reporting regions; particularly strong order growth in the U.S. and Germany and a continued high level of demand in China; strong revenue growth in the U.S. and China
• Sharply higher profit and profitability, with increases in all businesses; strongest improvement in the PLM software business; Q3 FY 2017 included €77 million in transaction and integration costs related to the acquisition of Mentor; overall profit and profitability impacted by ongoing expenses related to Siemens' MindSphere platform investments
• Higher orders in all businesses; revenue growth in the large drives and process automation businesses partly offset by a decline in the mechanical components business following weak demand in previous quarters
• On a geographic basis, orders up in all regions while revenue growth was driven by the Asia, Australia region; both order and revenue growth included strong contributions from China
• Broad-based improvements in profit and profitability despite negative currency effects

Siemens Healthineers

		Q3	% Change
(in millions of €)	FY 2018	FY 2017	Actual	Comp.
Orders	3,514	3,468	1%	6%
Revenue	3,300	3,291	0%	5%
Profit	515	542	(5)%
therein: severance	(25)	(11)
Profit margin	15.6%	16.5%
excl. severance	16.4%	16.8%

		Siemens Gamesa Renewable Energy
--	--	---------------------------------	--

		Q3	% Change
(in millions of €)	FY 2018	FY 2017	Actual	Comp.
Orders	3,293	1,398	135%	143%
Revenue	2,136	2,693	(21)%	(18)%
Profit	115	164	(30)%
therein: severance	(17)	(3)
Profit margin	5.4%	6.1%
excl. severance	6.2%	6.2%

• Orders and revenue flat due to significant negative currency translation effects
• Comparable revenue growth led by the imaging business

• Profit held back by significant currency headwinds and lower profitability in the diagnostics business resulting from the continuing rollout of the Atellica platform

• Sharp order growth due to a higher volume from large orders which included a €1.3 billion contract win for an offshore wind-farm, including service, in the U.K.; several large orders in the onshore business, which shows signs of price stabilization

• Substantially lower revenue and profit due mainly to pricing pressure associated with past orders for onshore wind turbines and timing factors related to the execution of large offshore wind projects

Financial Services

	Q3
(in millions of €)	FY 2018	FY 2017
Income before income taxes	173	161
therein: severance	(1)	−
ROE (after taxes)	22.1%	19.4%
(in millions of €)	Jun 30, 2018	Sep 30, 2017
Total assets	27,162	26,474

Reconciliation to Consolidated Financial Statements

Profit
	Q3
(in millions of €)	FY 2018	FY 2017
Centrally managed portfolio activities	(35)	120
Siemens Real Estate	37	6
Corporate items	(271)	(221)
Centrally carried pension expense	(75)	(104)
Amortization of intangible assets acquired in business combinations	(299)	(339)
Eliminations, Corporate Treasury and other reconciling items	(109)	(22)
Reconciliation to Consolidated Financial Statements	(752)	(560)

Outlook

We continue to expect basic EPS from net income in the range of €7.70 to €8.00, excluding severance charges. Furthermore we confirm our expectation of modest growth in revenue, net of effects from currency translation and portfolio transactions, and continue to anticipate that orders will exceed revenue for a book-to-bill ratio above 1 for the full fiscal year. We continue to expect a profit margin of 11.0% to 12.0% for our Industrial Business also excluding severance charges.

This outlook excludes charges related to legal and regulatory matters and potential effects which may follow the introduction of a new strategic program.

Continued strong earnings contribution from Financial Services included a gain from the sale of a stake in an equity investment

• Centrally managed portfolio activities (CMPA): Q3 FY 2017 included income from reversals of provisions for post-closing guarantees related to a former divestment and for warranties
• Results of CMPA are expected to remain volatile in coming quarters

Notes and forward-looking statements

Starting today at 8:30 a.m. CEST, the combined Press and Analyst Conference at which Siemens CEO Joe Kaeser and CFO Dr. Ralf P. Thomas discuss the quarterly figures and outline a strategy update will be broadcast live at www.siemens.com/pressconference.

Recordings of the combined Press and Analyst Conference 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 the applicable financial reporting framework not clearly defined – supplemental financial measures that are or may be alternative performance measures (non-GAAP-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 the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance 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 § 53 of the Exchange Rules for the Frankfurter Wertpapierbörse.

Financial Media: Philipp Encz Phone: +49 89 636-32934 E-mail: philipp.encz@siemens.com

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

Siemens AG, 80333 Munich, Germany

© 2018 by Siemens AG, Berlin and Munich

Financial Results

Third Quarter and First Nine Months of Fiscal 2018

siemens.com

Key figures

(in millions of €, except where otherwise stated)

Volume

	Q3			% Change	Q1 - Q3			% Change
	FY 2018	FY 2017	Actual	Comp.1	FY 2018	FY 2017	Actual	Comp.1
Orders	22,802	19,675	16%	21%	67,596	62,127	9%	9%
Revenue	20,473	21,298	(4)%	0%	60,437	60,646	0%	0%
Book-to-bill ratio	1.11				1.12
Order backlog (in billions of €)	132				132

Profitability and Capital efficiency

					% Change
					(7)%
10.7%	10.1%		10.9%	11.7%
2,359	2,485	(5)%	7,339	8,299	(12)%
1,164	1,424	(18)%	5,337	4,821	11%
1.30	1.69	(23)%	6.31	5.80	9%
1,210	1,409	(14)%	5,439	4,843	12%
1.36	1.67	(19)%	6.43	5.83	10%
10.1%	11.6%		14.8%	14.3%
	FY 2018 2,209	Q3 FY 2017 2,173	% Change 2%	FY 2018 6,670	Q1 - Q3 FY 2017 7,199

Capital structure and Liquidity

	Jun 30, 2018	Sep 30, 2017
Total equity	47,992	44,619
Industrial net debt	5,513	9,876
Industrial net debt / EBITDA3	0.6	0.9

	Q3 FY 2018	Q3 FY 2017	Q1 - Q3 FY 2018	Q1 - Q3 FY 2017
Free cash flow
Continuing operations	884	942	2,522	2,422
Continuing and discontinued operations	879	941	2,541	2,393

Employees

	Jun 30, 2018	Sep 30, 2017
Number of employees (in thousands)	376	377
Germany	117	118
Outside Germany	259	259

² Basic earnings per share – attributable to shareholders of Siemens AG. For fiscal 2018 and 2017 weighted average shares outstanding (basic) (in thousands)

for the third quarter amounted to 814,101 and 812,828 and for the first nine months to 815,768 and 810,673 shares, respectively. ⁴

Accumulative EBITDA of the previous four quarters until the reporting date.

Throughout excluding currency translation and portfolio effects.

Consolidated Statements of Income

	Q3		Q1 - Q3
(in millions of €, per share amounts in €)	FY 2018	FY 2017	FY 2018	FY 2017
Revenue	20,473	21,298	60,437	60,646
Cost of sales	(14,391)	(15,179)	(42,089)	(41,911)
Gross profit	6,082	6,120	18,348	18,735
Research and development expenses	(1,372)	(1,347)	(3,991)	(3,688)
Selling and general administrative expenses	(3,238)	(3,205)	(9,444)	(9,048)
Other operating income	180	122	379	517
Other operating expenses	(145)	(91)	(470)	(354)
Income (loss) from investments accounted for using the equity method, net	38	24	12	(57)
Interest income	390	391	1,110	1,123
Interest expenses	(273)	(287)	(817)	(774)
Other financial income (expenses), net	(32)	47	1,514	175
Income from continuing operations before income taxes	1,631	1,774	6,642	6,631
Income tax expenses	(467)	(350)	(1,306)	(1,810)
Income from continuing operations	1,164	1,424	5,337	4,821
Income (loss) from discontinued operations, net of income taxes	46	(15)	102	22
Net income	1,210	1,409	5,439	4,843
Attributable to:
Non-controlling interests	104	51	191	119
Shareholders of Siemens AG	1,106	1,357	5,248	4,724
Basic earnings per share
Income from continuing operations	1.30	1.69	6.31	5.80
Income (loss) from discontinued operations	0.06	(0.02)	0.12	0.03
Net income	1.36	1.67	6.43	5.83
Diluted earnings per share
Income from continuing operations	1.28	1.65	6.21	5.68
Income (loss) from discontinued operations	0.06	(0.02)	0.12	0.03
Net income	1.34	1.63	6.33	5.71

Consolidated Statements of Comprehensive Income

	Q3		Q1 - Q3
(in millions of €)	FY 2018	FY 2017	FY 2018	FY 2017
Net income	1,210	1,409	5,439	4,843
Remeasurements of defined benefit plans	177	374	(324)	2,635
therein: Income tax effects	5	(215)	(269)	(1,076)
Income (loss) from investments accounted for using the equity method, net	(1)	−	−	(2)
Items that will not be reclassified to profit or loss	176	374	(324)	2,633
Currency translation differences	724	(1,167)	4	(720)
Available-for-sale financial assets	14	280	(1,812)	639
therein: Income tax effects	(6)	(4)	22	(9)
Derivative financial instruments	(81)	124	(96)	161
therein: Income tax effects	23	(50)	35	(70)
Income (loss) from investments accounted for using the equity method, net	11	(16)	(19)	32
Items that may be reclassified subsequently to profit or loss	668	(780)	(1,923)	111
Other comprehensive income, net of income taxes	844	(405)	(2,247)	2,744
Total comprehensive income	2,053	1,003	3,192	7,587
Attributable to:
Non-controlling interests	133	(3)	157	87
Shareholders of Siemens AG	1,921	1,006	3,035	7,500

Consolidated Statements of Financial Position

	Jun 30,	Sep 30,
(in millions of €)	2018	2017
Assets
Cash and cash equivalents	7,090	8,375
Available-for-sale financial assets	1,198	1,242
Trade and other receivables	17,567	16,754
Other current financial assets	8,041	7,664
Contract assets	8,663	8,781
Inventories	14,714	13,885
Current income tax assets	1,003	1,098
Other current assets	1,760	1,466
Assets classified as held for disposal	123	1,484
Total current assets	60,159	60,750
Goodwill	28,226	27,906
Other intangible assets	10,279	10,926
Property, plant and equipment	11,072	10,977
Investments accounted for using the equity method	2,701	2,727
Other financial assets	17,427	19,044
Deferred tax assets	2,421	2,283
Other assets	1,796	1,498
Total non-current assets	73,922	75,361
Total assets	134,081	136,111
Liabilities and equity
Short-term debt and current maturities of long-term debt	3,061	5,447
Trade payables	9,560	9,756
Other current financial liabilities	1,404	1,444
Contract liabilities	15,127	14,228
Current provisions	3,773	4,077
Current income tax liabilities	2,472	2,355
Other current liabilities	8,318	8,671
Liabilities associated with assets classified as held for disposal	1	99
Total current liabilities	43,715	46,077
Long-term debt	26,108	26,777
Provisions for pensions and similar obligations	7,588	9,582
Deferred tax liabilities	1,436	1,635
Provisions	4,365	4,366
Other financial liabilities	791	902
Other liabilities	2,087	2,153
Total non-current liabilities	42,374	45,415
Total liabilities	86,089	91,492
Equity
Issued capital	2,550	2,550
Capital reserve	6,126	6,368
Retained earnings	40,498	35,794
Other components of equity	(136)	1,665
Treasury shares, at cost	(3,528)	(3,196)
Total equity attributable to shareholders of Siemens AG	45,511	43,181
Non-controlling interests	2,481	1,438
Total equity	47,992	44,619
Total liabilities and equity	134,081	136,111

	Q3
(in millions of €)	FY 2018	FY 2017
Cash flows from operating activities
Net income	1,210	1,409
Adjustments to reconcile net income to cash flows from operating activities - continuing operations
(Income) loss from discontinued operations, net of income taxes	(46)	15
Amortization, depreciation and impairments	813	863
Income tax expenses	467	350
Interest (income) expenses, net	(116)	(104)
(Income) loss related to investing activities	(111)	(53)
Other non-cash (income) expenses	447	206
Change in operating net working capital from
Contract assets	(282)	(51)
Inventories	(59)	(591)
Trade and other receivables	(683)	(180)
Trade payables	537	154
Contract liabilities	64	(541)
Additions to assets leased to others in operating leases	(167)	(106)
Change in other assets and liabilities	(230)	255
Income taxes paid	(828)	(536)
Dividends received	90	139
Interest received	383	361
Cash flows from operating activities - continuing operations	1,486	1,589
Cash flows from operating activities - discontinued operations	(5)	(1)
Cash flows from operating activities - continuing and discontinued operations	1,481	1,588
Cash flows from investing activities
Additions to intangible assets and property, plant and equipment	(602)	(647)
Acquisitions of businesses, net of cash acquired	(57)	(853)
Purchase of investments	(156)	(121)
Purchase of current available-for-sale financial assets	(281)	(209)
Change in receivables from financing activities	(356)	121
Disposal of investments, intangibles and property, plant and equipment	132	16
Disposal of businesses, net of cash disposed	167	(2)
Disposal of current available-for-sale financial assets	255	209
Cash flows from investing activities - continuing operations	(900)	(1,485)
Cash flows from investing activities - discontinued operations	(13)	(3)
Cash flows from investing activities - continuing and discontinued operations	(913)	(1,487)
Cash flows from financing activities
Purchase of treasury shares	(185)	(208)
Re-issuance of treasury shares and other transactions with owners	509	568
Repayment of long-term debt (including current maturities of long-term debt)	(3,104)	(4)
Change in short-term debt and other financing activities	(67)	(1,238)
Interest paid	(255)	(236)
Dividends attributable to non-controlling interests	(18)	(20)
Cash flows from financing activities - continuing operations	(3,120)	(1,138)
Cash flows from financing activities - discontinued operations	−	−
Cash flows from financing activities - continuing and discontinued operations	(3,120)	(1,138)
Effect of changes in exchange rates on cash and cash equivalents	61	(358)
Change in cash and cash equivalents	(2,491)	(1,396)
Cash and cash equivalents at beginning of period	9,581	9,881
Cash and cash equivalents at end of period	7,090	8,486
Less: Cash and cash equivalents of assets classified as held for disposal and discontinued operations
at end of period	−	−
Cash and cash equivalents at end of period (Consolidated Statements of Financial Position)	7,090	8,485

	Q1 - Q3
(in millions of €)	FY 2018	FY 2017
Cash flows from operating activities
Net income	5,439	4,843
Adjustments to reconcile net income to cash flows from operating activities - continuing operations
Income from discontinued operations, net of income taxes	(102)	(22)
Amortization, depreciation and impairments	2,504	2,192
Income tax expenses	1,306	1,810
Interest (income) expenses, net	(294)	(350)
(Income) loss related to investing activities	(1,795)	(244)
Other non-cash (income) expenses	756	380
Change in operating net working capital from
Contract assets	97	(271)
Inventories	(881)	(1,708)
Trade and other receivables	(840)	94
Trade payables	(200)	(51)
Contract liabilities	760	32
Additions to assets leased to others in operating leases	(427)	(338)
Change in other assets and liabilities	(1,738)	(2,168)
Income taxes paid	(1,677)	(1,599)
Dividends received	205	323
Interest received	1,055	1,042
Cash flows from operating activities - continuing operations	4,167	3,964
Cash flows from operating activities - discontinued operations	19	(29)
Cash flows from operating activities - continuing and discontinued operations	4,187	3,935
Cash flows from investing activities
Additions to intangible assets and property, plant and equipment	(1,646)	(1,542)
Acquisitions of businesses, net of cash acquired	(407)	(4,322)
Purchase of investments	(784)	(399)
Purchase of current available-for-sale financial assets	(526)	(601)
Change in receivables from financing activities	(613)	146
Disposal of investments, intangibles and property, plant and equipment	1,532	356
Disposal of businesses, net of cash disposed	361	(29)
Disposal of current available-for-sale financial assets	564	618
Cash flows from investing activities - continuing operations	(1,519)	(5,772)
Cash flows from investing activities - discontinued operations	(32)	(5)
Cash flows from investing activities - continuing and discontinued operations	(1,551)	(5,777)
Cash flows from financing activities
Purchase of treasury shares	(1,022)	(352)
Re-issuance of treasury shares and other transactions with owners	4,127	594
Issuance of long-term debt	−	6,958
Repayment of long-term debt (including current maturities of long-term debt)	(3,518)	(3,585)
Change in short-term debt and other financing activities	208	73
Interest paid	(714)	(659)
Dividends paid to shareholders of Siemens AG	(3,011)	(2,914)
Dividends attributable to non-controlling interests	(100)	(135)
Cash flows from financing activities - continuing operations	(4,029)	(19)
Cash flows from financing activities - discontinued operations	−	−
Cash flows from financing activities - continuing and discontinued operations	(4,029)	(19)
Effect of changes in exchange rates on cash and cash equivalents	95	(271)
Change in cash and cash equivalents	(1,299)	(2,132)
Cash and cash equivalents at beginning of period	8,389	10,618
Cash and cash equivalents at end of period	7,090	8,486
Less: Cash and cash equivalents of assets classified as held for disposal and discontinued operations at end of period	−	−
Cash and cash equivalents at end of period (Consolidated Statements of Financial Position)	7,090	8,485

Overview of Segment figures

				Orders				Revenue		Profit		Profit margin /	Net capital employed /		Free cash flow
								SFS: ROE				SFS: Total assets
	Q3			% Change	Q3			% Change	Q3		Q3		Jun 30,	Sep 30,	Q3
(in millions of €)	FY 2018	FY 2017	Actual	Comp.	FY 2018	FY 2017	Actual	Comp.	FY 2018	FY 2017	FY 2018	FY 2017	2018	2017	FY 2018	FY 2017
Power and Gas	3,757	2,638	42%	54%	3,008	3,809	(21)%	(16)%	164	370	5.4%	9.7%	10,445	9,964	148	219
Energy Management	2,732	3,030	(10)%	(5)%	3,059	3,037	1%	5%	233	206	7.6%	6.8%	4,746	4,177	14	303
Building Technologies	1,694	1,609	5%	9%	1,611	1,608	0%	4%	177	165	11.0%	10.3%	1,439	1,241	94	154
Mobility	2,505	2,323	8%	11%	2,131	2,052	4%	6%	177	180	8.3%	8.8%	2,644	2,727	336	121
Digital Factory	3,285	3,023	9%	12%	3,259	2,918	12%	13%	681	443	20.9%	15.2%	9,469	9,304	594	512
Process Industries and Drives	2,413	2,255	7%	11%	2,235	2,182	2%	5%	147	103	6.6%	4.7%	2,394	2,003	159	123
Siemens Healthineers	3,514	3,468	1%	6%	3,300	3,291	0%	5%	515	542	15.6%	16.5%	12,332	11,047	483	614
Siemens Gamesa Renewable Energy	3,293	1,398	135%	143%	2,136	2,693	(21)%	(18)%	115	164	5.4%	6.1%	4,462	4,663	(26)	(650)
Industrial Business	23,192	19,744	17%	23%	20,738	21,589	(4)%	0%	2,209	2,173	10.7%	10.1%	47,932	45,126	1,802	1,397
Financial Services (SFS)	267	234	−	−	267	234	−	−	173	161	22.1%	19.4%	27,162	26,474	149	161
Reconciliation to Consolidated Financial Statements	(657)	(303)	−	−	(532)	(525)	−	−	(752)	(560)	−	−	58,987	64,512	(1,068)	(615)
Siemens (continuing operations)	22,802	19,675	16%	21%	20,473	21,298	(4)%	0%	1,631	1,774	−	−	134,081	136,111	884	942

Overview of Segment figures

				Orders				Revenue		Profit		Profit margin /		Net capital employed /	Free cash flow
												SFS: ROE		SFS: Total assets
	Q1 - Q3			% Change		Q1 - Q3		% Change	Q1 - Q3			Q1 - Q3	Jun 30,	Sep 30,	Q1 - Q3
(in millions of €)	FY 2018	FY 2017	Actual	Comp.	FY 2018	FY 2017	Actual	Comp.	FY 2018	FY 2017	FY 2018	FY 2017	2018	2017	FY 2018	FY 2017
Power and Gas	9,992	9,759	2%	12%	9,093	11,789	(23)%	(17)%	516	1,279	5.7%	10.9%	10,445	9,964	4	453
Energy Management	8,371	9,578	(13)%	(7)%	8,833	8,838	0%	6%	680	620	7.7%	7.0%	4,746	4,177	51	506
Building Technologies	5,176	5,206	(1)%	4%	4,775	4,764	0%	6%	502	570	10.5%	12.0%	1,439	1,241	325	525
Mobility	8,140	6,618	23%	27%	6,410	5,873	9%	13%	636	555	9.9%	9.5%	2,644	2,727	766	433
Digital Factory	10,210	8,572	19%	13%	9,533	8,215	16%	11%	1,970	1,621	20.7%	19.7%	9,469	9,304	1,722	1,408
Process Industries and Drives	6,993	6,686	5%	9%	6,374	6,487	(2)%	2%	438	371	6.9%	5.7%	2,394	2,003	254	227
Siemens Healthineers	10,207	10,364	(2)%	5%	9,721	10,021	(3)%	4%	1,587	1,752	16.3%	17.5%	12,332	11,047	1,031	1,434
Siemens Gamesa Renewable Energy	9,249	5,976	55%	11%	6,504	5,593	16%	(14)%	342	430	5.3%	7.7%	4,462	4,663	(232)	(352)
Industrial Business	68,337	62,759	9%	9%	61,244	61,579	(1)%	0%	6,670	7,199	10.9%	11.7%	47,932	45,126	3,920	4,634
Financial Services (SFS)	746	705	−	−	746	705	−	−	536	508	22.4%	21.3%	27,162	26,474	520	620
Reconciliation to Consolidated Financial Statements
	(1,487)	(1,337)	−	−	(1,553)	(1,638)	−	−	(564)	(1,076)	−	−	58,987	64,512	(1,919)	(2,832)
Siemens (continuing operations)	67,596	62,127	9%	9%	60,437	60,646	0%	0%	6,642	6,631	−	−	134,081	136,111	2,522	2,422

EBITDA Reconciliation

				Profit Q3			Amortization of intangible assets acquired in business combinations Q3		Financial income (expenses), net		EBIT	Q3	Amortization, depreciation and impairments	EBITDA
(in millions of €)	FY 2018	FY 2017	FY 2018	FY 2017	Q3 FY 2018	FY 2017	Q3 FY 2018	FY 2017	FY 2018	FY 2017	Q3 FY 2018	FY 2017
Power and Gas	164	370	(55)	(61)	12	21	97	287	111	121	208	409
Energy Management	233	206	(4)	(5)	(4)	1	232	201	52	53	285	254
Building Technologies	177	165	(3)	(3)	2	−	172	163	19	21	191	183
Mobility	177	180	(25)	(15)	2	3	150	162	48	36	198	198
Digital Factory	681	443	(94)	(87)	−	1	587	356	151	129	738	484
Process Industries and Drives	147	103	(3)	(6)	1	−	144	96	53	51	197	147
Siemens Healthineers	515	542	(33)	(36)	6	5	476	502	134	132	611	634
Siemens Gamesa Renewable Energy	115	164	(82)	(126)	(15)	(7)	48	45	143	190	191	235
Industrial Business	2,209	2,173	(298)	(338)	4	23	1,906	1,811	712	733	2,618	2,544
Financial Services (SFS)	173	161	−	−	161	174	12	(14)	52	52	64	38
Reconciliation to Consolidated Financial Statements	(752)	(560)	299	338	(80)	(47)	(372)	(175)	49	78	(323)	(97)
Siemens (continuing operations)	1,631	1,774	−	−	85	151	1,546	1,623	813	863	2,359	2,485

EBITDA Reconciliation

	Profit		Amortization of intangible assets acquired in business combinations				EBIT		Amortization, depreciation and impairments	EBITDA
	Q1 - Q3		Q1 - Q3		Q1 - Q3		Q1 - Q3		Q1 - Q3		Q1 - Q3
(in millions of €)	FY 2018	FY 2017	FY 2018	FY 2017	FY 2018	FY 2017	FY 2018	FY 2017	FY 2018	FY 2017	FY 2018	FY 2017
Power and Gas	516	1,279	(170)	(191)	24	24	322	1,065	396	377	719	1,441
Energy Management	680	620	(13)	(14)	(3)	−	670	605	154	157	824	762
Building Technologies	502	570	(8)	(9)	3	(1)	492	562	56	65	547	628
Mobility	636	555	(59)	(44)	7	8	570	503	120	100	690	603
Digital Factory	1,970	1,621	(288)	(153)	6	1	1,676	1,467	446	280	2,122	1,747
Process Industries and Drives	438	371	(7)	(19)	2	1	428	351	145	153	574	504
Siemens Healthineers	1,587	1,752	(97)	(113)	8	17	1,482	1,622	375	399	1,857	2,021
Siemens Gamesa Renewable Energy	342	430	(239)	(129)	(28)	2	131	299	460	272	592	571
Industrial Business	6,670	7,199	(882)	(673)	18	52	5,770	6,474	2,153	1,804	7,924	8,278
Financial Services (SFS)	536	508	(1)	(1)	512	489	23	18	155	157	179	175
Reconciliation to Consolidated Financial Statements	(564)	(1,076)	883	674	1,277	(17)	(959)	(385)	196	231	(763)	(154)
Siemens (continuing operations)	6,642	6,631	−	−	1,808	524	4,835	6,106	2,504	2,192	7,339	8,299

Orders & Revenue by region

				Orders	Revenue
	Q3			% Change		Q3	% Change
(in millions of €)	FY 2018	FY 2017	Actual	Comp.	FY 2018	FY 2017	Actual	Comp.
Europe, C.I.S., Africa, Middle East	12,350	9,897	25%	28%	10,567	10,987	(4)%	(2)%
therein: Germany	2,434	3,221	(24)%	(24)%	2,967	2,941	1%	1%
Americas	5,965	5,409	10%	21%	5,485	6,200	(12)%	(4)%
therein: U.S.	4,306	4,112	5%	11%	3,988	4,460	(11)%	(4)%
Asia, Australia	4,487	4,369	3%	6%	4,421	4,111	8%	11%
therein: China	2,130	1,795	19%	20%	2,081	1,855	12%	13%
Siemens (continuing operations)	22,802	19,675	16%	21%	20,473	21,298	(4)%	0%
therein: Emerging markets	6,619	6,628	0%	8%	6,844	7,296	(6)%	(1)%

				Orders
		Q1 - Q3		% Change		Q1 - Q3	% Change
(in millions of €)	FY 2018	FY 2017	Actual	Comp.	FY 2018	FY 2017	Actual	Comp.
Europe, C.I.S., Africa, Middle East	35,310	32,829	8%	7%	30,954	31,538	(2)%	(1)%
therein: Germany	7,885	10,534	(25)%	(25)%	8,336	8,088	3%	3%
Americas	18,089	16,321	11%	16%	16,256	17,492	(7)%	(4)%
therein: U.S.	12,745	11,906	7%	11%	11,622	12,667	(8)%	(2)%
Asia, Australia	14,197	12,976	9%	3%	13,228	11,616	14%	12%
therein: China	6,116	5,275	16%	18%	5,893	5,080	16%	18%
Siemens (continuing operations)	67,596	62,127	9%	9%	60,437	60,646	0%	0%
therein: Emerging markets	22,342	19,938	12%	10%	20,501	20,621	(1)%	(2)%