##### Table of Contents





As filed with the Securities and Exchange Commission on
    December 2, 2008
    UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
    FORM 20-F
 o
    REGISTRATION STATEMENT PURSUANT
    TO SECTION 12(b) OR (g)
    OF THE SECURITIES EXCHANGE ACT OF 1934 OR
 þ
    ANNUAL REPORT PURSUANT TO
    SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
    1934 For the fiscal year ended
    September 30, 2008.
 OR
 o
    TRANSITION REPORT PURSUANT TO
    SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
    1934 For the transition period
    from 
    to
 OR
 o
    SHELL COMPANY REPORT PURSUANT
    TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this
    shell company
    report
 Commission file number:
    1-15174
  Siemens
    Aktiengesellschaft
 (Exact name of Registrant as
    specified in its charter)
 Federal Republic of
    Germany
 (Jurisdiction of incorporation
    or organization)
 Wittelsbacherplatz 2
 D-80333 Munich
 Federal Republic of
    Germany
 (Address of principal executive
    offices)
    Title of each class

Name of each exchange on which registeredAmerican Depositary Shares, each representing oneCommon Share, no par value

New York Stock ExchangeCommon Shares, no par value*

New York Stock Exchange   *
    Listed, not for trading or
    quotation purposes, but only in connection with the registration
    of American Depositary Shares pursuant to the requirements of
    the Securities and Exchange Commission.    Securities registered
    or to be registered pursuant to Section 12(g) of the Act:
    None
    Securities for which
    there is a reporting obligation pursuant to Section 15(d) of the
    Act: None
    The number of
    outstanding shares of each of the issuers classes of
    capital or common stock as of September 30, 2008:
    861,557,756 common shares, no par value.
    Indicate by check mark
    if the registrant is a well-known seasoned issuer, as defined in
    Rule 405 of the Securities Act.
 Yes  þ     No  o
     If this report is an
    annual or transition report, indicate by check mark if the
    registrant is not required to file reports pursuant to
    Section 13 or 15(d) of the Securities Exchange Act of 1934.
 Yes  o     No  þ
    Indicate by check mark
    whether the Registrant (1) has filed all reports required
    to be filed by Section 13 or 15(d) of the Securities
    Exchange Act of 1934 during the preceding 12 months (or for
    such shorter period that the Registrant was required to file
    such reports), and (2) has been subject to such filing
    requirements for the past 90 days.
 Yes  þ     No  o     Not
    applicable  o
    Indicate by check mark
    whether the registrant is a large accelerated filer, an
    accelerated filer, or a non-accelerated filer. See definition of
    accelerated filer and large accelerated filer in
    Rule 12b-2 of the Exchange Act.
 Large accelerated
    filer  þ     Accelerated
    filer  o     Non-accelerated
    filer  o
 Indicate by check mark
    which basis of accounting the registrant has used to prepare the
    financial statements included in this filing:
  U.S.
    GAAP  o

International Financial Reporting Standards as issued

Other  oby the International Accounting Standards
    Board  þ  If Other
    has been checked in response to the previous question, indicate
    by check mark which financial statement item the registrant has
    elected to follow.
 Item 17  o  
    Item 18  o
 If this is an annual
    report, indicate by check mark whether the registrant is a shell
    company (as defined in Rule 12b-2 of the Exchange Act).
 Yes  o     No  þ




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##### 





TABLE OF
    CONTENTS
   
 PageItem 1:


Identity of Directors, Senior Management and
    Advisers


1Item 2:


Offer Statistics and Expected Timetable


1Item 3:


Key Information


1Item 4:


Information on the Company


11Item 4A:


Unresolved Staff Comments


40Item 5:


Operating and Financial Review and Prospects


40Item 6:


Directors, Senior Management and Employees


90Item 7:


Major Shareholders and Related Party
    Transactions


114Item 8:


Financial Information


115Item 9:


The Offer and Listing


115Item 10:


Additional Information


118Item 11:


Quantitative and Qualitative Disclosure About
    Market Risk


134Item 12:


Description of Securities Other than Equity
    Securities


134Item 13:


Defaults, Dividend Arrearages and
    Delinquencies


135Item 14:


Material Modifications to the Rights of Security
    Holders and Use of Proceeds


135Item 15:


Controls and Procedures


135Item 16A:


Audit Committee Financial Expert


141Item 16B:


Code of Ethics


141Item 16C:


Principal Accountant Fees and Services


141Item 16D:


Exemptions from the Listing Standards for Audit
    Committees


143Item 16E:


Purchases of Equity Securities by the Issuer and
    Affiliated Purchasers


144Item 17:


Financial Statements


F-1Item 19:


Exhibits


III-1Exhibit 8.1Exhibit 12.1Exhibit 12.2Exhibit 13.1Exhibit 13.2Exhibit 14.1    FORWARD
    LOOKING STATEMENTS
  Form 20-F
  Form 20-F,
 i




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ii




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##### Table of Contents



PART I
  ITEM 1:
    IDENTITY
    OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS    ITEM 2:
    OFFER
    STATISTICS AND EXPECTED TIMETABLE    ITEM 3:
    KEY
    INFORMATION  Selected
    Consolidated Financial and Statistical Data
       1




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##### Table of Contents



Income
    Statement Data
  Year ended September 30,2008(1)


2007(1)


2006(1)


2005(1)


2004( in millions, except per share data)Amounts in accordance with IFRS:Revenue


77,327



72,448



66,487



55,781



N/AIncome from continuing operations before income taxes


2,874



5,101



3,418



3,594



N/AIncome from continuing operations


1,859



3,909



2,642



2,813



N/AIncome (loss) from discontinued operations, net of income taxes


4,027



129



703



(237
)


N/ANet income


5,886



4,038



3,345



2,576



N/ABasic earnings per shareIncome from continuing operations


1.91



4.13



2.78



2.96



N/AIncome (loss) from discontinued operations


4.50



0.11



0.74



(0.25
)


N/ANet income


6.41



4.24



3.52



2.71



N/ADiluted earnings per shareIncome from continuing operations


1.90



3.99



2.77



2.85



N/AIncome (loss) from discontinued operations


4.49



0.11



0.74



(0.23
)


N/ANet income


6.39



4.10



3.51



2.62



N/A   Year ended September 30,2008(1)


2007(1)


2006(1)


2005(1)


2004( in millions, except per share data)Amounts in accordance with U.S. GAAP:Net sales


N/A



78,890



77,559



66,089



61,480Income from continuing operations before income taxes


N/A



3,250



3,728



3,549



3,807Income from continuing operations, net of income taxes


N/A



2,064



2,650



2,543



3,006Income (loss) from discontinued operations, net of income taxes


N/A



353



393



(379
)


399Net income


N/A



2,417



3,043



2,164



3,405Basic earnings per shareIncome from continuing operations


N/A



2.30



2.97



2.85



3.37Income (loss) from discontinued operations


N/A



0.39



0.45



(0.42
)


0.45Net income


N/A



2.69



3.42



2.43



3.82Diluted earnings per shareIncome from continuing operations


N/A



2.29



2.85



2.74



3.23Income (loss) from discontinued operations


N/A



0.39



0.42



(0.41
)


0.43Net income


N/A



2.68



3.27



2.33



3.66  2




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Balance
    Sheet Data
  At September 30,2008


2007


2006


2005


2004( in millions)Amounts in accordance with IFRS:Total assets


94,463



91,555



87,528



81,579



N/ALong-term debt


14,260



9,860



13,122



8,040



N/ATotal equity


27,380



29,627



25,895



23,791



N/ACommon stock


2,743



2,743



2,673



2,673



N/AAmounts in accordance with U.S. GAAP:Total assets


N/A



93,470



90,770



85,884



79,239Long-term debt


N/A



9,853



13,399



8,436



9,785Shareholders equity


N/A



30,379



28,926



26,632



26,454Common stock


N/A



2,743



2,673



2,673



2,673     (1)
    Under IFRS, the historical results of the former segments
    Communications (Com) and Siemens VDO Automotive (SV) are
    reported as discontinued operations in the Companys
    Consolidated Statements of Income for all periods presented and
    the assets and liabilities were classified on the balance sheet
    as held for disposal. For further information see Note 4 to
    Consolidated Financial Statements.    Dividends
    Dividend paidper shareYear ended September 30,

Euro


Dollar2004


1.25



1.632005


1.35



1.652006


1.45



1.882007


1.60



2.362008


1.60
*


     *
    Proposed by the Managing Board and the Supervisory Board; to be
    approved by the shareholders at the shareholders annual
    meeting on January 27, 2009.  Exchange
    Rate Information
     3




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##### Table of Contents



Fiscal year ended September 30,

Average2004


1.21992005


1.27272006


1.23612007


1.34202008


1.5067     2008

High


LowMay


1.5784



1.5370June


1.5749



1.5368July


1.5923



1.5559August


1.5569



1.4660September


1.4737



1.3939October


1.4058



1.2446November (through November 24)


1.3039



1.2525       Risk
    Factors
    Strategic
  Market
    Dynamics
  Our business is affected by the uncertainties of economic
    and political conditions:
 4




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Our financial results and cash flows may be adversely
    affected by continued strategic reorientations and cost-cutting
    initiatives:
  We operate in highly competitive markets, which are
    subject to price pressures and rapid
    changes:
  Our businesses must keep pace with technological changes
    and develop new products and services to remain
    competitive:
  Our financial results and cash flows may be adversely
    affected by cost overruns or additional payment obligations
    particularly with respect to our long-term
    contracts:
 5




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Equity
    Interests and Strategic Alliances
  We may be adversely affected by our equity interests and
    strategic alliances:
  Merger,
    Acquisition & Divestiture
  Our financial results and cash flows may be adversely
    affected by portfolio measures:
      Operations
  Supply
    Chain Management
  We are dependent upon the ability of third parties to
    deliver parts, components and services on
    time:
  We may be adversely affected by rising raw material
    prices:
 6




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Product
    Lifecycle Management
  We face operational risks in our value chain
    processes:
  Human
    Resources
  We are dependent upon hiring and retaining highly
    qualified management and technical
    personnel:
  Financial
  Market
  We are exposed to currency risks and interest rate
    risks:
  We are exposed to widening credit
    spreads:
  Liquidity
    and Credit
  Our future financing via Corporate Treasury may be
    affected by the uncertainties of economic conditions and the
    development of capital and bank markets: U.S.-based
 7




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and/or
  Our financing activities subject us to various risks
    including credit, interest rate and foreign exchange
    risk:
  Downgrades of our ratings may increase our cost of capital
    and could negatively affect our
    businesses:
  Capital
    Structure
  The funded status of our off-balance sheet pension benefit
    plans and its financial statement impact is dependent on several
    factors:
  Compliance
  Code of
    Conduct
  Public prosecutors and other government authorities in
    jurisdictions around the world, including the
    U.S. Securities and Exchange Commission (SEC) and the
    U.S. Department of Justice (DOJ), are conducting
    investigations of Siemens and certain of its current and former
    employees regarding allegations of public corruption and other
    illegal acts. The results of these and any future investigations
    may have a material adverse effect on the development of future
    business opportunities, our financial results and condition, the
    price of our shares and ADSs and our
    reputation:
 8




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Legal
  Our business could suffer as a result of current or future
    litigation: and/or
 9




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and/or
  Regulatory
  We are subject to risks associated with our international
    operations:
  We are subject to environmental and other government
    regulations:
  Changes in tax regulations could result in lower earnings
    and cash flows:
 10




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ITEM 4:
    INFORMATION
    ON THE COMPANY  Overview
  th
     11




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Fit42010
    Program
  4 4 Performance Performance Portfolio, People Excellence Corporate Responsibility Operational
    Excellence.
  Performance
  Portfolio
  People Excellence People
    Excellence
  Corporate Responsibility Corporate
    Governance, Compliance, Climate Protection, Corporate
    Citizenship. Corporate Governance Compliance Climate Protection Corporate Citizenship
  Operational Excellence Innovation Global supply chain management.
    Innovation Global supply chain management
  Portfolio
    Activities
    Acquisitions
  
    Sector Healthcares, Diagnostics division, acquired Dade
    Behring at the beginning of November 2007 to further expand
    Healthcares position in the growing laboratory diagnostics
    market; 12




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
    Acquisition of three entities in fiscal 2008, which were not
    significant individually: BJC, Spain, a supplier of switches and
    socket-outlets at sector Industry, Building Technologies
    division; Innotec GmbH, a leading software provider for
    lifecycle management solutions at Sector Industrys
    Industry Automation division; and the rolling mill technology
    specialist Morgan Construction Co., USA, at Sector Industry,
    Industry Solutions division;
    At Sector Industry, the Industry Automation division acquired
    U.S.-based
    UGS Corp. (UGS), one of the leading providers of product
    lifecycle management (PLM) software and services for
    manufacturers, in May 2007;
    Sector Healthcares acquisition of the diagnostics division
    of Bayer Aktiengesellschaft in January 2007, enabling
    Healthcares Diagnostics division to expand its position in
    the molecular diagnostics market;
    Sector Healthcares, Diagnostics division, acquired the
    immunodiagnostics provider Diagnostics Products Corporation
    (DPC), USA, in the fourth quarter of fiscal 2006; and
    Acquisition of a number of entities in fiscal 2006, which were
    not significant individually: the coal gasification business of
    the Swiss Sustec-Group; Wheelabrator Air Pollution Control,
    Inc., USA, a supplier of air pollution control and reduction
    products and solutions for the coal-fired power and industrial
    market, both belonging to the Sector Energy, Fossil Power
    Generation division; Electrium, UK, vendor of electrical
    installation systems; and Bewator, Sweden, a supplier of
    products and systems for access control solutions, both
    belonging to Sector Industry, Building Technology division.  Dispositions
    and Discontinued operations
  
    By the end of September 2008, the Siemens enterprise networks
    business, reported in discontinued operations and formerly part
    of Com, was brought into the joint venture Enterprise Networks
    Holding BV, the Netherlands. In exchange, Siemens received a 49%
    stake in Enterprise Networks Holdings BV, while the remaining
    51% are held by The Gores Group, USA, which contributed two
    entitiesEnterasys and SER Solutionsto the joint
    venture. Commencing with closing of the transaction, Siemens
    accounts its remaining equity interest under the equity method;
    The sale of SV, reported as discontinued operations, to
    Continental AG, Hanover, Germany, closed at the beginning of
    December 2007;
    In April 2007, Siemens contributed its carrier-related
    operations reported as discontinued operation and Nokia
    Corporation (Nokia), Finland contributed its Networks Business
    Group into Nokia Siemens Networks BV, the Netherlands (NSN), in
    exchange for shares in NSN. Siemens and Nokia each own an
    economic share of approximately 50% of NSN. Beginning in April
    2007, Siemens accounts its remaining interest in NSN under the
    equity method;
    In August 2006, Siemens sold the majority of its Dematic
    business, which consisted of the Distribution and Industry
    Logistics (DI) and Material Handling Products (MHP)
    divisions both presented in Other Operations; and
    At the beginning of April 2006, the former operating segment
    Siemens Business Services (SBS) closed the sale of its Product
    Related Services (PRS) business to Fujitsu Siemens Computers
    (Holding) BV.    Financial
    Performance Measures
   13




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
    ROCE is defined as Income from continuing operations (before
    interest) divided by average capital employed. Income from
    continuing operations (before interest) is defined as Income
    from continuing operations (as presented in the Consolidated
    Financial Statements) excluding Other interest income (expense),
    net (as presented in the Notes to Consolidated Financial
    Statements) and excluding taxes on Other interest income
    (expense), net. Capital employed is defined as Total equity plus
    Long-term debt plus Short-term debt and current maturities of
    long-term debt minus Cash and cash equivalents, each as
    presented in the Consolidated Financial Statements, plus
    Liabilities associated with assets classified as held for
    disposal minus Assets classified as held for disposal, both
    relating to discontinued operations and as presented in the
    Notes to Consolidated Financial Statements.
    EVA compares the net operating profit after tax of a former
    Group to the costs of capital for the average capital employed
    in the business of that Group.
    Free cash flow presented in the Notes to Consolidated Financial
    Statements is defined as net cash provided by (used in)
    operating activities (continuing operations), less Additions to
    intangible assets and property, plant and equipment (continuing
    operations).   14




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Description
    of Business
    
    three Sectors Industry, Energy and Healthcare, which are
    reported along with fourteen Divisions which comprise the
    Divisions Industry Automation, Drive Technologies, Building
    Technologies, OSRAM, Industry Solutions and Mobility belonging
    to the Industry Sector, the Divisions Fossil Power Generation,
    Renewable Energy, Oil & Gas, Power Transmission and
    Power Distribution belonging to the Energy Sector and the
    Divisions Imaging & IT, Workflow & Solutions
    and Diagnostics belonging to the Healthcare Sector,
    two Cross-Sector Businesses Siemens IT Solutions and Services
    and Siemens Financial Services and
    Equity Investments.     
 15




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##### Table of Contents



Industry
      Year endedSeptember 30, 2008Total revenue


38.085 billionExternal revenue


36.908 billionExternal revenue as percentage of Siemens revenue


47.73%Sector profit


3.861 billion     
  Industry Automation
  Drive Technologies
 16




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Building Technologies
  OSRAM
  Industry Solutions
  Mobility
  Industry Sector
     17




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##### Table of Contents



Industry Automation Drive Technologies Building Technologies Industry Solutions OSRAM, Mobility
   18




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##### Table of Contents



Energy
      Year endedSeptember 30, 2008Total revenue


22.577 billionExternal revenue


22.191 billionExternal revenue as percentage of Siemens revenue


28.70%Sector profit


1.434 billion     
  Fossil Power Generation
  Renewable Energy
  Oil & Gas
 19




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##### Table of Contents



Energy Service
  Power Transmission step-up
    Power Distribution
       20




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21




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Healthcare
      Year endedSeptember 30, 2008Total revenue


11.170 billionExternal revenue


11.116 billionExternal revenue as percentage of Siemens revenue


14.38%Sector profit


1.225 billion     
    Imaging & IT
  Workflow & Solutions
 22




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##### Table of Contents



Diagnostics
          Equity
    Investments
      
    Nokia Siemens Networks B.V. (NSN): NSN began operations
    in the third quarter of fiscal 2007 and includes the
    carrier-related operations of Siemens and the Networks Business
    Group of Nokia. NSN is a leading supplier in the
    telecommunications infrastructure industry. 23




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##### Table of Contents




    BSH Bosch und Siemens Hausgeräte GmbH (BSH): BSH is
    a leading manufacturer of household appliances, offering an
    extensive range of innovative products tailored to customer
    needs and global megatrends alike. BSH was founded as a joint
    venture in 1967 between Robert Bosch GmbH and Siemens.
    Fujitsu Siemens Computers (Holding) B.V. (FSC): FSC is
    one of Europes leading IT manufacturer, offering a broad
    array of innovative products, services and infrastructure
    solutions. FSC was established as a joint venture holding
    company by Fujitsu Limited and Siemens in 1999. In fiscal 2006,
    FSC acquired the Product Related Services (PRS), the service and
    maintenance business of the former Siemens Business Services
    (SBS). As of September 30, 2008, our investment in FSC is
    classified as held for sale. At the beginning of November 2008
    Siemens signed an agreement to sell its 50% stake in FSC to
    Fujitsu Limited. The transaction, which is subject to the
    approval of regulatory authorities, is expected to close in the
    third quarter of fiscal 2009.    Siemens Enterprise Communications GmbH &
    Co. KG (SEN)
  Krauss-Maffei Wegmann GmbH & Co. KG
  Siemens Elin
    Buildings & Infrastructure GmbH & Co.
    KG ELIN GmbH &
    Co. KG
  Siemens
    Home and Office Communication Devices GmbH & Co. KG
    (SHC) ARQUES Invest Potenzial GmbH ARQUES Value Development
    GmbH
    Siemens
    IT Solutions and Services
   24




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##### Table of Contents



Year endedSeptember 30, 2008Total revenue


5.325 billionExternal revenue


3.845 billionExternal revenue as percentage of Siemens revenue


4.97%Profit


144 million     
    
    Industry-Energy-Healthcare, which includes the
    automotive, discrete manufacturing, mobility and process
    industries as well as the energy and healthcare markets;
    Public sector, which includes defense &
    intelligence, public security, employment services and public
    administration; and
    Service industries, which includes customers in
    telecommunications and internet services, media, and in
    financial services and consulting services.      
    project-oriented consulting, design and implementation services,
    such as selecting, adapting and introducing new solutions to
    support business processes, as well as integration of systems
    and enterprise applications.
    outsourcing services (full-scale IT operations spanning hosting,
    call center, network and desktop services) as well as operation
    of selected business processes (e.g. financial services
    back-office operations).
    software development such as design and implementation of
    software solutions for the three Siemens Sectors Industry,
    Energy and Healthcare as well as for external customers. In
    fiscal 2009, Siemens will create a central software house within
    Corporate Technology. This software house will include our
    software programming capabilities for the three Siemens Sectors.    
    customer relationship management, to assist businesses in
    aligning their organizations to better serve the needs and
    requirements of their customers;
    business information management, to improve our customers
    business processes, including services and solutions for
    business information, document and product data management; 25




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##### Table of Contents




    supply chain management, to facilitate the efficient interplay
    of all of a business operational processes with those of
    its suppliers;
    enterprise resource management, to optimize a customers
    internal management and production processes; and
    e-commerce
    systems and solutions in a range of industries, to allow
    customers to offer a variety of Internet-based services through
    design and implementation of software for communications and
    transactions applications.              Siemens
    Financial Services (SFS)
     26




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Year endedSeptember 30, 2008Total assets


11.328 billionTotal assets as percentage of Siemens assets


12.00%Profit


286 million     Commercial Finance Europe/APAC (COFEA) Commercial
    Finance U.S. (COFUS)
        Equity and Project Finance.
   27




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start-up
    Treasury and Investment Management.
  Insurance.
       28




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Employees
    and Labor Relations
    Employees
    by Segments*
 As of September 30,2008


2007


2006(in thousands)Industry


222



209



193Energy


83



73



66Healthcare


49



43



36Siemens IT Solutions and Services


41



40



34Siemens Financial Services


2



2



2Other**


30



31



40Total


427



398



371     *
    Continuing Operations.**
    Includes employees in corporate functions and services and
    business units not allocated to any Sector or Cross-Sector
    Businesses.  Employees
    by Geographic Region*
 As of September 30,2008


2007


2006(in thousands)Europe, C.I.S., Africa


250



237



230therein Germany


132



126



123Americas


98



92



83therein U.S.


69



66



59Asia, Australia, Middle East


79



69



58therein China


32



24



21therein India


17



17



13Total


427



398



371     *
    Continuing operations.  Betriebsverfassungsgesetz
    Environmental
    Matters
   29




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30




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and/or
  Property
          Intellectual
    Property
    Legal
    Proceedings
  Public
    Corruption Proceedings
  Governmental
    and Related Proceedings
     31




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
    As previously reported, there are ongoing investigations in
    Switzerland, Italy, and Greece into allegations that certain
    current and former employees of the former Com Group opened
    slush fund accounts abroad and operated a system to
    misappropriate funds from the Company. The Company has learned
    that Liechtenstein prosecutors have transferred their
    investigation to Swiss and Munich prosecutors.
    As previously reported, Milan, Italy and Darmstadt, Germany
    prosecutors investigated allegations that former Siemens
    employees provided improper benefits to former employees of Enel
    in connection with Enel contracts. In Italy, legal proceedings
    against two former employees ended when the
    patteggiamento (plea bargaining procedure without
    the admission of guilt or responsibility) by the charged
    employees and Siemens AG entered into force in November 2006.
    Prosecutors in Darmstadt brought charges against two other
    former employees not covered by the patteggiamento.
    In May 2007, the Regional Court of Darmstadt sentenced one
    former employee to two years in prison, suspended on probation,
    on counts of commercial bribery and embezzlement. Another former
    employee was sentenced to nine months in prison, suspended on
    probation, on counts of aiding and abetting commercial bribery.
    In connection with these sentences, Siemens AG was ordered to
    disgorge 38 million of profits. In August 2008, the
    German Federal Supreme Court (Bundesgerichtshof) reversed the
    convictions of the former employees on counts of commercial
    bribery and aiding and abetting commercial bribery. As a
    consequence, the Federal Supreme Court also reversed the
    disgorgement order of 38 million of profits by
    Siemens AG.
    The public prosecutor in Milan, Italy is investigating
    allegations as to whether two employees of Siemens S.p.A. made
    illegal payments to employees of the state-owned gas and power
    group ENI. In November 2007, the public prosecutor filed charges
    against the two employees, Siemens S.p.A. and one of its
    subsidiaries, as well as against other individuals and companies
    not affiliated with Siemens.
    The public prosecutor in Wuppertal, Germany is conducting an
    investigation against Siemens employees regarding allegations
    that they participated in bribery related to the awarding of an
    EU contract for the refurbishment of a power plant in Serbia in
    2002. 32




---



##### Table of Contents




    The Norwegian government is investigating payments made by
    Siemens for golf trips in 2003 and 2004, which were attended by
    members of the Norwegian Department of Defense, and allegations
    of bribery and overcharging of the Norwegian Department of
    Defense related to the awarding of a contract for the delivery
    of communication equipment in 2001.
    The public prosecutor in Athens, Greece concluded his
    preliminary investigation relating to allegations of active and
    passive bribery of public officials, money laundering and aiding
    and abetting the foregoing, in connection with, among others, a
    telecom contract relating to the 2004 Olympic Games awarded by
    the Greek government to Siemens and purchases of telecom
    equipment by the Hellenic Telecommunications Organization SA
    (OTE) in the late 1990s. In July 2008, the prosecutor named
    several suspects, including several former Siemens employees,
    and transferred the case to an investigative Magistrates
    Court in Athens, which can issue criminal charges against
    specific individuals. Separately, preliminary investigations
    continue into allegations of bribery by Siemens of the Greek
    national railways and of the Greek Ministry of Defense and the
    Military. The Greek Ministry of Finance has also announced tax
    probes into the local operations of Siemens.
    Siemens Zrt. Hungary and certain of its employees are being
    investigated by Hungarian authorities in connection with
    allegations concerning suspicious payments in connection with
    consulting agreements with a variety of shell corporations and
    bribery relating to the awarding of a contract for the delivery
    of communication equipment to the Hungarian Armed Forces.
    The Vienna, Austria public prosecutor is conducting an
    investigation into payments between 1999 and 2006 relating to
    Siemens AG Austria and its subsidiary VAI for which valid
    consideration could not be identified.
    Authorities in Russia are conducting an investigation into the
    award of contracts to Siemens for the delivery of medical
    equipment to public authorities in Yekaterinburg in the years
    2003 to 2005.
    In October 2008, U.S. authorities conducted a search at the
    premises of Siemens Building Technologies Inc. in Cleveland,
    Ohio in connection with a previously ongoing investigation into
    activities with Cuyahoga County government agencies.
    There are currently numerous public corruption-related
    governmental investigations in China, involving several
    divisions of Siemens Ltd. China, primarily the former group Med,
    but also the former group Automation & Drives and
    Siemens IT Solutions and Services. The investigations have been
    initiated by prosecutors in several regions and provinces,
    including Guangdong, Jilin, Xian, Wuxi, Shanghai, Ting Hu,
    Shandong, Hunan, and Guiyang.
    The Argentinean Anti-Corruption Authority is conducting an
    investigation into corruption of government officials in
    connection with the awarding to Siemens in 1998 of the contract
    for the development and operation of a system for the production
    of identity cards, border control, collection of data and
    voters registers. A search was executed at the premises of
    Siemens Argentina and Siemens IT Services SA in Buenos Aires in
    August 2008. The Argentinean investigative judge also requested
    judicial assistance from the Munich prosecutor and the federal
    court in New York.
    In June 2008, the court of first instance in Kalimantan
    Province, Indonesia, found the head of the former Med group of
    Siemens PT Indonesia not guilty of the allegations that he
    participated in bribery, fraud, and overcharging related to the
    awarding of a contract for the delivery of medical equipment to
    a hospital in 2003. The decision has been appealed by the
    prosecutor.     33




---



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Inter-American
      Civil
    Litigation
    and/or
     34




---



##### Table of Contents



Siemens
    Response
      Form 20-F
      Antitrust
    Proceedings
     35




---



##### Table of Contents



36




---



##### Table of Contents



Other
    Proceedings
  (Betriebsverfassungsgesetz) (Arbeitsgemeinschaft Unabhängiger
    Betriebsangehöriger)
     37




---



##### Table of Contents



and/or and/or
           38




---



##### Table of Contents



39




---



##### Table of Contents



ITEM 4A:
    UNRESOLVED
    STAFF COMMENTS    ITEM 5:
    OPERATING
    AND FINANCIAL REVIEW AND PROSPECTS  Introduction
  Form 20-F
 40




---



##### 



TABLE
    OF CONTENTS
   
 PageBusiness Overview and Economic Environment


43Basis of Presentation


49Fiscal 2008 Compared to Fiscal 2007


52Consolidated Operations of Siemens


52Segment Information Analysis


56Fiscal 2007 Compared to Fiscal 2006


65Consolidated Operations of Siemens


65Segment Information Analysis


68Liquidity and Capital Resources


76Financial Strategy and Capital Structure


76Cash FlowFiscal 2008 Compared to Fiscal
    2007


78Cash FlowFiscal 2007 Compared to Fiscal
    2006


79Capital Resources and Requirements


81Overview Financial Position


85Subsequent Events


87Critical Accounting Estimates


88Recent Accounting Pronouncements


89        Currency translation effects and portfolio
    effects
 41




---



##### Table of Contents



Free cash flow
  Net debt
 42




---



##### Table of Contents



Business
    overview and Economic Environment  Fiscal
    2008  Summary
        Orders rose 11%, to 93.495 billion, and revenue
    increased 7%, to
    77.327 billion.
  Total Sector profit was burdened by transformation costs and
    project charges.
  Income from continuing operations was
    1.859 billion compared to 3.909 billion in
    fiscal 2007.
 43




---



##### Table of Contents



Net income rose to 5.886 billion from
    4.038 billion in fiscal 2007.
  Free cash flow from continuing operations was
    5.739 billion.
  Expenses for compliance investigations reflect progress
    regarding settlement.
  Siemens share buyback plan reduced outstanding shares
    by approximately 53 million.
  Dividend.
  Strategic
    Overview
  4 4 4
  new organizational structure
 44




---



##### Table of Contents



new target margins
    new setup for our
    regional
  SG&A
    program
  new management
    incentive program best-in-class.
  Worldwide
    Economic Environment
    Europe/C.I.S./Africa
  Americas
  Asia/Australia/Middle East
 45




---



##### Table of Contents



Market
    Trends
    Urbanization
  Demographic change
  Climate change
  Globalization
  Market
    Development
  pent-up
 46




---



##### Table of Contents



Industry
  Energy
  Healthcare
    Research
    and Development
    corporate R&D organization
  Industry
 47




---



##### Table of Contents



Energy
  Healthcare
  Global
    SG&A Program
     48




---



##### Table of Contents



Basis
    of Presentation     49




---



##### Table of Contents



Operations Financing and Real Estate Eliminations, reclassifications and Corporate Treasury
     50




---



##### Table of Contents



and/or
    
    Europe, Commonwealth of Independent States (C.I.S.),
    Africa,
    Americas and
    Asia, Australia, Middle East.   51




---



##### Table of Contents



Fiscal
    2008 Compared to Fiscal 2007  Consolidated
    Operations of Siemens  Results
    of Siemens
      New Orders (location of customer)% ChangeYear ended September 30,


vs. previous year


therein2008


2007


Actual


Adjusted*


Currency


Portfolio( in millions)Europe, C.I.S.**, Africa


50,029



43,374



15%



15%



(2)%



2%therein Germany


14,434



13,562



6%



5%



0%



1%Americas


24,010



22,831



5%



11%



(11)%



5%therein U.S.


17,437



16,662



5%



14%



(15)%



6%Asia, Australia, Middle East


19,456



17,711



10%



12%



(5)%



3%therein China


5,446



4,871



12%



13%



(3)%



2%therein India


2,268



2,015



13%



17%



(8)%



4%Siemens


93,495



83,916



11%



13%



(5)%



3%     *
    Excluding currency translation and portfolio effects.**
    Commonwealth of Independent States.    Asia/Australia/Middle
 52




---



##### Table of Contents



Revenue (location of customer)% ChangeYear ended September 30,


vs. previous year


therein2008


2007


Actual


Adjusted*


Currency


Portfolio( in millions)Europe, C.I.S.**, Africa


40,795



38,180



7%



7%



(2)%



2%therein Germany


12,797



12,594



2%



1%



0%



1%Americas


20,107



19,321



4%



9%



(11)%



6%therein U.S.


14,847



14,832



0%



7%



(14)%



7%Asia, Australia, Middle East


16,425



14,947



10%



12%



(5)%



3%therein China


4,878



4,146



18%



18%



(2)%



2%therein India


1,885



1,676



12%



13%



(9)%



8%Siemens


77,327



72,448



7%



9%



(5)%



3%     *
    Excluding currency translation and portfolio effects.**
    Commonwealth of Independent States.      Year endedSeptember 30,2008


2007


% Change( in millions)Gross profit on revenue


21,043



20,876



1%as percentage of revenue


27.2
%


28.8
%     53




---



##### Table of Contents



Year endedSeptember 30,2008


2007


% Change( in millions)Research and development expenses


(3,784
)


(3,399
)


11
%as percentage of revenue


4.9
%


4.7
%


Marketing, selling and general administrative expenses


(13,586
)


(12,103
)


12
%as percentage of revenue


17.6
%


16.7
%


Other operating income


1,047



680



54
%Other operating expense


(2,228
)


(1,053
)


112
%Income from investments accounted for using the equity method,
    net


260



108



141
%Financial income (expense), net


122



(8
)


n.a.            54




---



##### Table of Contents



Year endedSeptember 30,2008


2007


% Change( in millions)Income from continuing operations before income taxes


2,874



5,101



(44
)%Income taxes


(1,015
)


(1,192
)


(15
)%as percentage of income from continuing operations before
    income taxes


35
%


23
%


Income from continuing operations


1,859



3,909



(52
)%Income from discontinued operations, net of income taxes


4,027



129



>200
%Net income


5,886



4,038



46
%Net income attributable to minority interest


161



232



Net income attributable to shareholders of Siemens AG


5,725



3,806



50
%        55




---



##### Table of Contents



Segment
    Information Analysis  Sectors
  Industry
  Year endedSeptember 30,



% Change


therein2008



2007



Actual


Adjusted*


Currency



Portfolio( in millions)SectorProfit


3,861




3,521




10
%Profit margin


10.1

%


9.8

%New orders


42,795




39,095




9
%


11
%


(4
)
%


2
%Total revenue


38,085




36,059




6
%


8
%


(4
)
%


2
%External revenue


36,908




34,976




6
%Therein:Europe, C.I.S.**, Africa


20,808




19,703




6
%Therein Germany


7,513




7,196




4
%Americas


8,817




8,947




(1)
%Asia, Australia, Middle East


7,283




6,326




15
%     *
    Excluding currency translation and portfolio effects.**
    Commonwealth of Independent States.  Industry
    New OrdersYear endedSeptember 30,


% Change


therein2008


2007


Actual


Adjusted*


Currency


Portfolio( in millions)DivisionsIndustry Automation


8,945



7,846



14
%


11%



(3
)%


6%Drive Technologies


9,846



8,883



11
%


14%



(3
)%


0%Building Technologies


6,333



6,351



(0)
%


3%



(4
)%


1%OSRAM


4,624



4,690



(1)
%


4%



(5
)%


0%Industry Solutions


8,415



7,704



9
%


12%



(4
)%


1%Mobility


7,842



6,475



21
%


25%



(4
)%


0%     *
    Excluding currency translation and portfolio effects.  56




---



##### Table of Contents



RevenueYear endedSeptember 30,


% Change


therein2008


2007


Actual


Adjusted*


Currency


Portfolio( in millions)DivisionsIndustry Automation


8,699



7,545



15
%


12
%


(3
)%


6%Drive Technologies


8,866



7,793



14
%


17
%


(3
)%


0%Building Technologies


5,984



6,038



(1
)%


3
%


(5
)%


1%OSRAM


4,624



4,690



(1
)%


4
%


(5
)%


0%Industry Solutions


7,106



6,601



8
%


11
%


(4
)%


1%Mobility


5,841



6,160



(5
)%


(2
)%


(3
)%


0%     *
    
    Excluding currency translation and
    portfolio effects.  Industry Automation Drive Technologies Building Technologie OSRAM Industry
    Solutions Mobility
  Profit


MarginYear ended





Year endedSeptember 30,





September 30,2008


2007


% Change


2008


2007( in millions)DivisionsIndustry Automation


1,606



1,102



46
%


18.5
%


14.6%Drive Technologies


1,193



913



31
%


13.5
%


11.7%Building Technologies


466



429



9
%


7.8
%


7.1%OSRAM


401



492



(18
)%


8.7
%


10.5%Industry Solutions


439



312



41
%


6.2
%


4.7%Mobility


(230
)


274







(3.9
)%


4.4%   Industry Automation
  Drive Technologies
 57




---



##### Table of Contents



Building Technologies
  OSRAM
  Industry Solutions
  Mobility
  Energy
  Year endedSeptember 30,



% Change


therein2008



2007



Actual


Adjusted*


Currency



Portfolio( in millions)SectorProfit


1,434




1,818




(21)
%Profit margin


6.4

%


9.0

%New orders


33,428




28,543




17
%


23
%


(6
)
%


0
%Total revenue


22,577




20,309




11
%


16
%


(5
)
%


0
%External revenue


22,191




19,875




12
%Therein:Europe, C.I.S.**, Africa


9,526




8,243




16
%Therein Germany


1,890




1,876




1
%Americas


5,643




4,885




16
%Asia, Australia, Middle East


7,022




6,747




4
%     *
    Excluding currency translation and portfolio effects.**
    Commonwealth of Independent States.      58




---



##### Table of Contents



New OrdersYear endedSeptember 30,


% Change


therein2008


2007


Actual


Adjusted*


Currency


Portfolio( in millions)DivisionsFossil Power Generation


12,993



11,721



11%



16%



(5
)%


0%Renewable Energy


4,434



2,452



81%



102%



(21
)%


0%Oil & Gas


5,630



4,734



19%



20%



(3
)%


2%Power Transmission


7,290



6,658



9%



15%



(6
)%


0%Power Distribution


3,578



3,327



8%



14%



(6
)%


0%     *
    Excluding currency translation and portfolio effects.  RevenueYear endedSeptember 30,


% Change


therein2008


2007


Actual


Adjusted*


Currency


Portfolio( in millions)DivisionsFossil Power Generation


8,171



8,129



1%



6%



(5
)%


0%Renewable Energy


2,092



1,365



53%



67%



(14
)%


0%Oil & Gas


4,038



3,363



20%



22%



(4
)%


2%Power Transmission


5,497



4,901



12%



17%



(5
)%


0%Power Distribution


3,211



2,851



13%



18%



(5
)%


0%     *
    Excluding currency translation and portfolio effects.  Fossil Power Generation
  Renewable Energy Oil & Gas Power Transmission Power Distribution Power Transmission Power
    Distribution
  Profit


MarginYear ended





Year endedSeptember 30,





September 30,2008


2007


% Change


2008


2007( in millions)DivisionsFossil Power Generation


(89
)


792







(1.1
)%


9.7
%Renewable Energy


242



134



81
%


11.6
%


9.8
%Oil & Gas


351



241



46
%


8.7
%


7.2
%Power Transmission


565



371



52
%


10.3
%


7.6
%Power Distribution


369



279



32
%


11.5
%


9.8
%  59




---



##### Table of Contents



Fossil Power Generation Renewable
    Energy Oil & Gas, Power Transmission Power Distribution Renewable Energy Oil & Gas Power Transmission Power Distribution
  Fossil Power Generation
  Healthcare
  Year endedSeptember 30,



% Change


therein2008



2007



Actual


Adjusted*


Currency



Portfolio( in millions)SectorProfit


1,225




1,323




(7)
%Profit margin


11.0

%


13.4

%New orders


11,779




10,271




15
%


4
%


(7
)
%


18
%Total revenue


11,170




9,851




13
%


2
%


(7
)
%


18
%External revenue


11,116




9,798




13
%Therein:Europe, C.I.S.**, Africa


4,351




3,596




21
%Therein Germany


980




875




12
%Americas


4,861




4,578




6
%Asia, Australia, Middle East


1,904




1,624




17
%     *
    Excluding currency translation and portfolio effects.**
    Commonwealth of Independent States.  Healthcare
   60




---



##### Table of Contents



New OrdersYear endedSeptember 30,


% Change


therein2008


2007


Actual


Adjusted*


Currency


Portfolio( in millions)DivisionsImaging & IT


7,243



7,439



(3
)%


3%



(6
)%


0%Workflow & Solutions


1,653



1,522



9
%


14%



(5
)%


0%Diagnostics


3,195



1,553



106
%


3%



(13
)%


116%     *
    Excluding currency translation and portfolio effects.  RevenueYear endedSeptember 30,


% Change


therein2008


2007


Actual


Adjusted*


Currency


Portfolio( in millions)DivisionsImaging & IT


6,811



7,066



(4
)%


2%



(6
)%


0%Workflow & Solutions


1,490



1,494



(0
)%


5%



(5
)%


0%Diagnostics


3,185



1,553



105
%


3%



(13
)%


115%     *
    Excluding currency translation and portfolio effects.  Imaging & IT Workflow & Solutions Diagnostics
  Profit


MarginYear ended





Year endedSeptember 30,





September 30,2008


2007


% Change


2008


2007( in millions)DivisionsImaging & IT


899



1,052



(15
)%


13.2
%


14.9
%Workflow & Solutions


66



163



(60
)%


4.4
%


10.9
%Diagnostics


248



95



161
%


7.8
%


6.1
%   Imaging & IT
  Workflow & Solutions
  Diagnostics
 61




---



##### Table of Contents



step-up step-up
  Equity
    Investments
      Cross-Sector
    Businesses
  Siemens
    IT Solutions and Services
  Year endedSeptember 30,



% Change


therein2008



2007



Actual


Adjusted*


Currency



Portfolio( in millions)Profit


144




252




(43)
%Profit margin


2.7

%


4.7

%New orders


5,272




5,156




2
%


4
%


(3
)
%


1
%Total revenue


5,325




5,360




(1)
%


1
%


(3
)
%


1
%External revenue


3,845




3,988




(4)
%Therein:Europe, C.I.S.**, Africa


3,322




3,415




(3)
%Therein Germany


1,451




1,498




(3)
%Americas


430




472




(9)
%Asia, Australia, Middle East


93




101




(8)
%     *
    Excluding currency translation and portfolio effects.**
    Commonwealth of Independent States.  Siemens IT Solutions and Services
 62




---



##### Table of Contents



Siemens
    Financial Services (SFS)
  Year endedSeptember 30,2008


2007


% Change( in millions)Income before income taxes


286



329



(13
)%Total assets


11,328



8,912



27
%       September 30,2008


2007( in millions)Allocated equity


1,113



1,041Total debt


9,359



7,081Therein intragroup financing


9,233



6,822Therein debt from external sources


126



259Debt to equity ratio


8.41



6.80SFS internally purchased receivables






406SFS debt excluding SFS internally purchased receivables


9,359



6,675Cash and cash equivalents


28



66       Reconciliation
    to Consolidated Financial Statements
    Other
    Operations
   63




---



##### Table of Contents



Siemens
    Real Estate (SRE)
    Corporate
    items and pensions
    Eliminations,
    Corporate Treasury and other reconciling items
   64




---



##### Table of Contents



Fiscal
    2007 Compared to Fiscal 2006  Consolidated
    Operations Of Siemens  Results
    of Siemens
    New Orders (location of customer)Year endedSeptember 30,


% Change


therein2007


2006


Actual


Adjusted*


Currency


Portfolio( in millions)Europe, C.I.S.**, Africa


43,374



38,725



12%



11%



0
%


1%therein Germany


13,562



12,782



6%



5%



0
%


1%Americas


22,831



20,202



13%



18%



(9
)%


4%therein U.S.


16,662



15,819



5%



11%



(10
)%


4%Asia, Australia, Middle East


17,711



16,017



11%



13%



(3
)%


1%therein China


4,871



4,357



12%



12%



(2
)%


2%therein India


2,015



1,757



15%



17%



(5
)%


3%Siemens


83,916



74,944



12%



13%



(3
)%


2%     *
    
    Excluding currency translation and
    portfolio effects.**
    
    Commonwealth of Independent States.      Revenue (location of customer)Year endedSeptember 30,


% Change


therein2007


2006


Actual


Adjusted*


Currency


Portfolio( in millions)Europe, C.I.S.**, Africa


38,180



35,347



8%



7%



0
%


1%therein Germany


12,594



12,382



2%



2%



0
%


0%Americas


19,321



18,371



5%



9%



(8
)%


4%therein U.S.


14,832



14,609



2%



7%



(9
)%


4%Asia, Australia, Middle East


14,947



12,769



17%



19%



(3
)%


1%therein China


4,146



3,667



13%



15%



(3
)%


1%therein India


1,676



1,034



62%



61%



(2
)%


3%Siemens


72,448



66,487



9%



10%



(3
)%


2%     *
    Excluding currency translation and portfolio effects.**
    Commonwealth of Independent States. 65




---



##### Table of Contents



Year endedSeptember 30,2007


2006


% Change( in millions)Gross profit on revenue


20,876



17,379



20
%as percentage of revenue


28.8
%


26.1
%     Year endedSeptember 30,2007


2006


% Change( in millions)Research and development expenses


(3,399
)


(3,091
)


10%as percentage of revenue


4.7
%


4.6
%


Marketing, selling and general administrative expenses


(12,103
)


(11,897
)


2%as percentage of revenue


16.7
%


17.9
%


Other operating income


680



629



8%Other operating expense


(1,053
)


(260
)


305%Income from investments accounted for using the equity method,
    net


108



404



(73)%Financial income (expense), net


(8
)


254



n.a.        66




---



##### Table of Contents



Year endedSeptember 30,2007


2006


% Change( in millions)Income from continuing operations before income taxes


5,101



3,418



49
%Income taxes


(1,192
)


(776
)


54
%as percentage of income from continuing operations before
    income taxes


23
%


23
%Income from continuing operations


3,909



2,642



48
%Income from discontinued operations, net of income taxes


129



703



(82
)%Net income


4,038



3,345



21
%Net income attributable to minority interest


232



210Net income attributable to shareholders of Siemens AG


3,806



3,135



21
%          67




---



##### Table of Contents



Segment
    Information Analysis  Sectors
  Industry
 Year endedSeptember 30,



% Change


therein2007



2006



Actual


Adjusted*


Currency



Portfolio( in millions)SectorProfit


3,521




2,618




34
%Profit margin


9.8

%


7.8

%New orders


39,095




36,821




6
%


8
%


(3
)
%


1
%Total revenue


36,059




33,658




7
%


9
%


(3
)
%


1
%External revenue


34,976




32,607




7
%Therein:Europe, C.I.S.**, Africa


19,703




18,027




9
%Therein Germany


7,196




6,766




6
%Americas


8,947




8,955




0
%Asia, Australia, Middle East


6,326




5,625




12
%     *
    Excluding currency translation and portfolio effects.**
    Commonwealth of Independent States.  Industry
 68




---



##### Table of Contents



New OrdersYear endedSeptember 30,



% Change


therein2007



2006



Actual


Adjusted*


Currency



Portfolio( in millions)DivisionsIndustry Automation


7,846




6,697




17
%


13
%


(2
)
%


6
%Drive Technologies


8,883




7,412




20
%


22
%


(2
)
%


0
%Building Technologies


6,351




6,206




2
%


4
%


(3
)
%


1
%OSRAM


4,690




4,563




3
%


7
%


(4
)
%


0
%Industry Solutions


7,704




6,887




12
%


13
%


(3
)
%


2
%Mobility


6,475




7,694




(16
)%


(13
)%


(1
)
%


(2
)%     *
    Excluding currency translation and portfolio effects. RevenueYear endedSeptember 30,



% Change


therein2007



2006



Actual


Adjusted*


Currency



Portfolio( in millions)DivisionsIndustry Automation


7,545




6,391




18
%


13
%


(2
)
%


7
%Drive Technologies


7,793




6,428




21
%


23
%


(2
)
%


0
%Building Technologies


6,038




5,728




5
%


8
%


(4
)
%


1
%OSRAM


4,690




4,563




3
%


7
%


(4
)
%


0
%Industry Solutions


6,601




6,465




2
%


3
%


(2
)
%


1
%Mobility


6,160




6,404




(4
)%


(2
)%


(1
)
%


(1
)%     *
    Excluding currency translation and portfolio effects.  Industry
    Automation Drive Technologies Building Technologies OSRAM Industry Solutions Mobility
 69




---



##### Table of Contents



Profit


Profit MarginYear ended






Year endedSeptember 30,






September 30,2007



2006



% Change


2007


2006( in millions)DivisionsIndustry Automation


1,102




964




14
%


14.6
%


15.1%Drive Technologies


913




559




63
%


11.7
%


8.7%Building Technologies


429




275




56
%


7.1
%


4.8%OSRAM


492




456




8
%


10.5
%


10.0%Industry Solutions


312




221




41
%


4.7
%


3.4%Mobility


274




144




90
%


4.4
%


2.2%   Industry Automation Drive
    Technologies Building Technologies OSRAM OSRAM Industry Solutions Mobility
  Energy
 Year endedSeptember 30,


% Change


therein2007


2006


Actual


Adjusted*


Currency


Portfolio( in millions)SectorProfit


1,818



1,084



68
%Profit margin


9.0
%


6.4
%New orders


28,543



21,001



36
%


38
%


(4
)%


2
%Total revenue


20,309



16,947



20
%


21
%


(3
)%


2
%External revenue


19,875



16,565



20
%Therein:Europe, C.I.S.**, Africa


8,243



7,046



17
%Therein Germany


1,876



1,712



10
%Americas


4,885



4,065



20
%Asia, Australia, Middle East


6,747



5,455



24
%     *
    Excluding currency translation and portfolio effects.**
    Commonwealth of Independent States. 70




---



##### Table of Contents



Energy
 New OrdersYear endedSeptember 30,


% Change


therein2007


2006


Actual


Adjusted*


Currency


Portfolio( in millions)DivisionsFossil Power Generation


11,721



8,104



45
%


47
%


(4
)%


2
%Renewable Energy


2,452



1,561



57
%


60
%


(3
)%


0
%Oil & Gas


4,734



3,603



31
%


24
%


(2
)%


9
%Power Transmission


6,658



5,301



26
%


31
%


(5
)%


0
%Power Distribution


3,327



2,899



15
%


17
%


(2
)%


0
%     *
    Excluding currency translation and portfolio effects. RevenueYear endedSeptember 30,


% Change


therein2007


2006


Actual


Adjusted*


Currency


Portfolio( in millions)DivisionsFossil Power Generation


8,129



6,764



20
%


22
%


(3
)%


1
%Renewable Energy


1,365



894



53
%


60
%


(8
)%


1
%Oil & Gas


3,363



2,973



13
%


5
%


(1
)%


9
%Power Transmission


4,901



4,222



16
%


19
%


(3
)%


0
%Power Distribution


2,851



2,425



18
%


20
%


(2
)%


0
%     *
    Excluding currency translation and portfolio effects.  Oil & Gas Power
    Transmission
 Profit


Profit MarginYear ended





Year endedSeptember 30,





September 30,2007


2006


% Change


2007


2006( in millions)DivisionsFossil Power Generation


792



584



36
%


9.7
%


8.6
%Renewable Energy


134



44



205
%


9.8
%


4.9
%Oil & Gas


241



112



115
%


7.2
%


3.8
%Power Transmission


371



138



169
%


7.6
%


3.3
%Power Distribution


279



177



58
%


9.8
%


7.3
%   Fossil Power Generation
 71




---



##### Table of Contents



Renewable Energy Oil & Gas Power Transmission Power Distribution
  Healthcare
 Year endedSeptember 30,


% Change


therein2007


2006


Actual


Adjusted*


Currency


Portfolio( in millions)SectorProfit


1,323



988



34
%Profit margin


13.4
%


12.0
%New orders


10,271



9,334



10
%


(2
)%


(5
)%


17
%Total revenue


9,851



8,227



20
%


6
%


(5
)%


19
%External revenue


9,798



8,164



20
%Therein:Europe, C.I.S.**, Africa


3,596



2,763



30
%Therein Germany


875



682



28
%Americas


4,578



4,044



13
%Asia, Australia, Middle East


1,624



1,357



20
%     *
    Excluding currency translation and portfolio effects.**
    Commonwealth of Independent States.  Healthcare
 72




---



##### Table of Contents



New OrdersYear endedSeptember 30,


% Change


therein2007


2006


Actual


Adjusted*


Currency


Portfolio( in millions)DivisionsImaging & IT


7,439



7,851



(5
)%


0
%


(5
)%


0
%Workflow & Solutions


1,522



1,613



(6
)%


(3
)%


(4
)%


1
%Diagnostics


1,553



67



>200
%










>200
%     *
    Excluding currency translation and portfolio effects. RevenueYear endedSeptember 30,


% Change


therein2007


2006


Actual


Adjusted*


Currency


Portfolio( in millions)DivisionsImaging & IT


7,066



6,974



1
%


6
%


(5
)%


0
%Workflow & Solutions


1,494



1,387



8
%


11
%


(4
)%


1
%Diagnostics


1,553



67



>200
%










>200
%     *
    Excluding currency translation and portfolio effects.  Imaging & IT Workflow & Solutions Imaging & IT Workflow & Solutions Diagnostics
 Profit


Profit MarginYear ended





Year endedSeptember 30,





September 30,2007


2006


% Change


2007


2006( in millions)DivisionsImaging & IT


1,052



841



25%



14.9
%


12.1
%Workflow & Solutions


163



180



(9)%



10.9
%


13.0
%Diagnostics


95



(2
)


n.a.



6.1
%


(3.0
)%   Imaging & IT Diagnostics
  Equity
    Investments
   73




---



##### Table of Contents



Cross-Sector
    Businesses
  Siemens
    IT Solutions and Services
 Year endedSeptember 30,


% Change


therein2007


2006


Actual


Adjusted*


Currency


Portfolio( in millions)Profit


252



(731
)Profit margin


4.7
%


(12.8
)%New orders


5,156



5,574



(7
)%


5
%


(1
)%


(11
)%Total revenue


5,360



5,693



(6
)%


5
%


(1
)%


(10
)%External revenue


3,988



4,466



(11
)%Therein:Europe, C.I.S.**, Africa


3,415



3,885



(12
)%Therein Germany


1,498



1,788



(16
)%Americas


472



504



(6
)%Asia, Australia, Middle East


101



76



32
%     *
    Excluding currency translation and portfolio effects.**
    Commonwealth of Independent States.        Siemens
    Financial Services (SFS)
 Year endedSeptember 30,2007


2006


% Change( in millions)Profit


329



306



8
%Total assets


8,912



10,543



(15
)%    74




---



##### Table of Contents



September 30,2007


2006( in millions)Allocated equity


1,041



1,131Total debt


7,081



8,819Therein intragroup financing


6,822



8,487Therein debt from external sources


259



333Debt to equity ratio


6.80



7.80SFS internally purchased receivables


406



2,761SFS debt excluding SFS internally purchased receivables


6,675



6,058Cash and cash equivalents


66



30   Reconciliation
    to Consolidated Financial Statements
    Other
    Operations
    Siemens
    Real Estate (SRE)
    Corporate
    items and pensions
   75




---



##### Table of Contents



Eliminations,
    Corporate Treasury and other reconciling items
     Liquidity
    and Capital Resources Financial
    Strategy and Capital Structure  Financial
    Strategy
        Capital
    Structure
    September 30,2008


2007


% Change( in millions)Total equity attributable to shareholders of Siemens AG


26,774



28,996



(8
)%As percentage of total capital


62
%


65
%Short-term debt


1,819



5,637Long-term debt


14,260



9,860Total debt


16,079



15,497



4
%As percentage of total capital


38
%


35
%Total capital (total debt and total equity)


42,853



44,493



(4
)%    76




---



##### Table of Contents



Ratings
    MoodysInvestors


Standard &Service


PoorsLong-term debt


A1



AA−Short-term debt


P-1



A-1+     P-1,
      A-1+
   77




---



##### Table of Contents



Cash
    FlowFiscal 2008 Compared to Fiscal 2007      Continuing





Continuing andoperations


Discontinued operations


discontinued operationsYear ended September 30,2008


2007


2008


2007


2008


2007( in millions)Net cash provided by (used in):Operating activities

A


9,281



9,822



(657
)


(2,494
)


8,624



7,328Investing activities




(9,989
)


(10,068
)


9,582



(1,289
)


(407
)


(11,357
)Herein: Additions to intangible assets and property, plant and
    equipment

B


(3,542
)


(3,067
)


(179
)


(684
)


(3,721
)


(3,751
)Free cash flow*

A+B


5,739



6,755



(836
)


(3,178
)


4,903



3,577     *
    The closest comparable financial measure under IFRS is Net
    cash provided by (used in) operating activities. Net
    cash provided by (used in) operating activities from
    continuing operationsas well as from continuing and
    discontinued operationsis reported within the
    Consolidated Statements of Cash Flow for Siemens.
    Additions to intangible assets and property, plant and
    equipment from continuing operationsis reconciled
    to the figures as reported in the Consolidated Statements
    of Cash Flow in the Notes to Consolidated Financial
    Statements. Other companies that report Free cash flow may
    define and calculate it differently.  Operating activities build-up
 78




---



##### Table of Contents



Investing activities
  Free cash flow
  Financing activities
 Cash
    FlowFiscal 2007 Compared to Fiscal 2006    Continuing andContinuing operations


Discontinued operations


discontinued operationsYear ended September 30,2007


2006


2007


2006


2007


2006( in millions)Net cash provided by (used in):Operating activities

A


9,822



5,003



(2,494
)


656



7,328



5,659Investing activities




(10,068
)


(4,315
)


(1,289
)


(381
)


(11,357
)


(4,696
)Herein: Additions to intangible assets and property, plant and
    equipment

B


(3,067
)


(3,183
)


(684
)


(869
)


(3,751
)


(4,052
)Free cash flow

A+B


6,755



1,820



(3,178
)


(213
)


3,577



1,607  79




---



##### Table of Contents



Operating activities build-up
  Investing activities
  Free cash flow
  Financing activities
 80




---



##### Table of Contents



Capital
    Resources and Requirements  capital resources capital requirements
  Total debt Total liquidity Net debt
  September 30,2008


2007( in millions)Short-term debt and current maturities of long-term debt


1,819



5,637Long-term debt


14,260



9,860Total debt


16,079



15,497Cash and cash equivalents


6,893



4,005Available-for-sale financial assets (current)


152



193Total liquidity


7,045



4,198Net debt


9,034



11,299   Credit facilities
  
    U.S.$5.0 billion undrawn syndicated multi-currency
    revolving credit facility expiring March 2012 provided by a
    syndicate of international banks;
    450 million undrawn revolving credit facility
    expiring September 2012 provided by a domestic bank;
    U.S.$4.0 billion syndicated multi-currency credit facility
    expiring August 2013 provided by a syndicate of international
    banks. The facility comprises a U.S.$1.0 billion term loan
    which was drawn in January 2007 and an undrawn
    U.S.$3.0 billion revolving tranche.    Commercial paper program
  Medium-term note program
 81




---



##### Table of Contents



credit facilities commercial paper medium-term note programs credit
    facilities
  Other financing instruments
          Capital expenditures
  Cash flows related to portfolio activities
  Share buyback plan
  Dividends
  Other capital requirements
 82




---



##### Table of Contents



Contractual
    Obligations
      Payments due by periodLess than








AfterTotal


1 year


1-3 years


4-5 years


5 years( in millions)Debt


16,079



1,819



2,285



3,761



8,214Purchase obligations


15,949



13,957



1,707



224



61Operating leases


2,715



631



845



548



691Total contractual cash obligations


34,743



16,407



4,837



4,533



8,966   Debt
    Short-Term


Long-Term


Total( in millions)Notes and bonds


1,024



11,942



12,966Loans from banks


479



1,856



2,335Other financial indebtedness


265



280



545Obligations under finance leases


51



182



233Total debt


1,819



14,260



16,079   Purchase obligations
  Operating leases
  clean-up
  Off-Balance
    Sheet Arrangements
  Guarantees
 83




---



##### Table of Contents



and/or agreed-upon
  HERKULES obligations 9-year
    Pension
    Plan Funding
    and/or
 84




---



##### Table of Contents



Overview
    Financial Position      September 30,2008


2007( in millions)Cash and cash equivalents


6,893



4,005Available-for-sale financial assets


152



193Trade and other receivables


15,785



14,620Other current financial assets


3,116



2,932Inventories


14,509



12,930Income tax receivables


610



398Other current assets


1,368



1,322Assets classified as held for disposal


809



11,532Total current assets


43,242



47,932        85




---



##### Table of Contents



September 30,2008


2007( in millions)Goodwill


16,004



12,501Other intangible assets


5,413



4,619Property, plant and equipment


11,258



10,555Investments accounted for using the equity method


7,017



7,016Other financial assets


7,785



5,561Deferred tax assets


3,009



2,594Other assets


735



777Total long-term assets


51,221



43,623         September 30,2008


2007( in millions)Short-term debt and current maturities of long-term debt


1,819



5,637Trade payables


8,860



8,382Other current financial liabilities


2,427



2,553Current provisions


5,165



3,581Income tax payables


1,970



2,141Other current liabilities


21,644



17,058Liabilities associated with assets classified as held for
    disposal


566



4,542Total current liabilities


42,451



43,894Long-term debt


14,260



9,860Pension plans and similar commitments


4,361



2,780Deferred tax liabilities


726



580Provisions


2,533



2,103Other financial liabilities


376



411Other liabilities


2,376



2,300Total long-term liabilities


24,632



18,034        86




---



##### Table of Contents



September 30,2008


2007( in millions)Total equity attributable to shareholders of Siemens AG


26,774



28,996Equity ratio


28
%


32
%Minority interest


606



631Total assets


94,463



91,555        Subsequent
    Events          Reid-Anderson
 87




---



##### Table of Contents



Critical
    Accounting Estimates    Revenue Recognition on Construction
    Contracts
  Trade and other Receivables
  Impairment
 88




---



##### Table of Contents



Employee Benefit Accounting
    Provisions
   Recent
    Accounting Pronouncements   89




---



##### Table of Contents



ITEM 6:
    DIRECTORS,
    SENIOR MANAGEMENT AND EMPLOYEES  Management
  Aktiengesetz
       90




---



##### Table of Contents



Supervisory
    Board
        
    to monitor the management of the Company;
    to appoint and dismiss members of our Managing Board;
    to represent the Company in its dealings with the Managing Board
    or when its interests are adverse to those of the Managing
    Board, for example, when the Company enters into an employment
    agreement with a Managing Board member, the Supervisory Board
    determines the salary and other compensation components,
    including pension benefits; and
    to approve matters in any areas that the Supervisory Board has
    made subject to its approval, either generally or in a specific
    case.      Companies at whichDate of

Term

Board position and

Supervisory Board and similarName

birth

expires

principal occupation

positions were heldDr. Gerhard Cromme


2/25/1943


Annual General Meeting 2013

Chairman of the Supervisory Board; Chairman of the Supervisory
    Board, ThyssenKrupp AG

Allianz SE; Axel Springer AG; ThyssenKrupp AG; Compagnie de
    Saint-Gobain S.A.Ralf
    Heckmann(1)


7/19/1949


Annual General Meeting 2013

First Deputy Chairman; Chairman of the Central Works Council,
    Siemens AG

Dr. Josef Ackermann


2/7/1948


Annual General Meeting 2013

Second Deputy Chairman; Chairman of Board of Managing Directors,
    Deutsche Bank AG

Belenos Clean Power Holding Ltd.; Royal Dutsch Shell plcLothar
    Adler(1)


2/22/1949


Annual General Meeting 2013

Member; Deputy Chairman of the Central Works Council, Siemens AG

 91




---



##### Table of Contents



Companies at whichDate of

Term

Board position and

Supervisory Board and similarName

birth

expires

principal occupation

positions were heldJean-Louis Beffa


8/11/1941


Annual General Meeting 2013

Member; Chairman of the Board of Directors of Compagnie de Saint
    Gobain S.A.

BNP Paribas; Compagnie de Saint Gobain S.A.; GDF Suez S.A.;
    Groupe Bruxelle Lambert; Le Monde S.A.; Le Monde &
    Partenaires Associés S.A.S.; Saint-Gobain Corporation;
    Société Editrice du Monde S.A.Gerhard
    Bieletzki(1)(2)


5/16/1947




Former Member; Chairman of the Works Council of Siemens VDO
    Automative AG.

Gerd von Brandenstein


4/6/1942


Annual General Meeting 2013

Member; Economist

DEGEWO Deutsche Gesellschaft zur Förderung des
    Wohnungsbaues, gemeinnützige AktiengesellschaftJohn David
    Coombe(3)


3/17/1945




Former Member; Chartered Accountant (FCA)

Hogg Robinson Group plc; Home Retail Group plc; HSBC Holdings plcHildegard
    Cornudet(1)(3)


4/16/1949




Former Member; Computer Engineer

Michael Diekmann


12/23/1954


Annual General Meeting 2013

Member; Chairman of the Board of Management of Allianz SE

Allianz Deutschland AG; Allianz Global Investors AG; BASF AG;
    Dresdner Bank AG; Linde AG; Allianz S.p.A.; Assurances
    Générales de FranceDr. Hans Michael Gaul


3/2/1942


Annual General Meeting 2013

Member

Evonik Industries AG; HSBC Trinkaus & Burkhardt AG; IVG
    Immobilien AG; VNG-Verbundnetz Gas AG; Volkswagen AGBirgit
    Grube(1)(3)


8/21/1945




Former Member; Administrative Clerk

Prof. Dr. Peter Gruss


6/28/1949


Annual General Meeting 2013

Member, President of the Max Planck Society for the Advancement
    of Science e.V.

DeveloGen AGBettina
    Haller(1)


3/14/1959


Annual General Meeting 2013

Member; Member of the Central Works Council, Siemens AG

Heinz
    Hawreliuk(1)


3/20/1947


Annual General Meeting 2013

Member; Representative, IG Metall

Berthold
    Huber(1)


2/15/1950


Annual General Meeting 2013

Member; First Chairman, IG Metall

Audi AGHarald
    Kern(1)


3/16/1960


Annual General Meeting 2013

Member; Member of the Central Works Council, Siemens AG

Prof. Dr. Walter
    Kröll(3)


5/30/1938




Former Member; Consultant

MTU Aero Engines GmbH; Wincor Nixdorf AG 92




---



##### Table of Contents



Companies at whichDate of

Term

Board position and

Supervisory Board and similarName

birth

expires

principal occupation

positions were heldDr. Nicola Leibinger-Kammüller


12/15/1959


Annual General Meeting 2013

Member; President and Chairwoman of the Managing Board of TRUMPF
    GmbH + Co. KG

Claas Kommanditgesellschaft auf Aktien mgh; Deutsche Lufthansa
    AG; Voith AGProf. Dr. Michael
    Mirow(3)


10/6/1938




Former Member; University Professor

Werner
    Mönius(1)


5/16/1954


Annual General Meeting 2013

Member; Chairman of Siemens Europe Committee

Roland
    Motzigemba(1)(4)


3/24/1960




Former Member; Chairman of the Central Works Council, Siemens
    Enterprise Communications Management GmbH & Co. KG

Thomas
    Rackow(1)(3)


2/6/1952




Former Member; Industrial manager

Håkan Samuelsson


3/15/1951


Annual General Meeting 2013

Member; Chairman of the Executive Board of MAN AG

MAN Diesel SE; MAN Ferrostaal AG; MAN Nutzfahrzeuge AG;
    manroland AG; MAN TURBO AG; RENK AktiengesellschaftDieter
    Scheitor(1)


11/23/1950


Annual General Meeting 2013

Member; Member of the Executive Committee, IG Metall

Dr. Albrecht
    Schmidt(3)


3/13/1938




Former Member; Retired Bank Director

Münchener Rückversicherungs-Gesellschaft AG;
    Thyssensche Handelsgesellschaft m.b.H.Dr. Henning
    Schulte-Noelle(3)


8/26/1942




Former Member; Chairman of the Supervisory Board, Allianz SE

Allianz SE; E.ON AG; ThyssenKrupp AGDr. Rainer
    Sieg(1)


12/20/1948


Annual General Meeting 2013

Member; Chairman of the Central Committee of Spokespersons,
    Siemens AG

Peter von
    Siemens(3)


8/10/1937




Former Member; Industrial Manager

Jerry I.
    Speyer(3)


6/23/1940




Former Member; Chairman & CEO, Tishman SpeyerBirgit
    Steinborn(1)


3/26/1960


Annual General Meeting 2013

Member; Member of the Central Works Council, Siemens AG

Lord Iain Vallance of Tummel


5/20/1943


Annual General Meeting 2013

Member; Chairman, Amsphere Ltd.

     (1)
    Elected by employees.(2)
    Gernard Bieletzki ceased to be a member of the Supervisory Board
    on December 3, 2007.(3)
    John David Coombe, Hildegard Cornudet, Birgit Grube, Prof.
    Dr. Walter Kröll, Prof. Dr. Michael Mirow, Thomas
    Rackow, Dr. Albrecht Schmidt, Dr. Henning
    Schulte-Noelle, Peter von Siemens and Jerry I. Speyer ceased to
    be members of the Supervisory Board on January 24, 2008.(4)
    Roland Motzigemba was a member of the Supervisory Board from
    December 3, 2007 to January 24, 2008. 93




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##### Table of Contents



Name of committee

Current membersChairmans Committee

Chairman Dr. Gerhard Cromme, Ralf Heckmann,* Dr. Josef
    Ackermann, Berthold Huber (as of January 24, 2008.)*Audit Committee

Chairman Dr. Hans Michael Gaul (Chairman as of January 24,
    2008,) Dr. Henning Schulte-Noelle (Chairman until January
    24, 2008,) Dr. Gerhard Cromme, Ralf Heckmann,* John David
    Coombe (until January 24, 2008,) Heinz Hawreliuk,* Dieter
    Scheitor (as of January 24, 2008,) * Lord Iain Vallance of
    Tummel (as of January 24, 2008.)Compliance Committee

Chairman Dr. Gerhard Cromme, Ralf Heckmann,* John David
    Coombe (until January 24, 2008), Dr. Hans Michael Gaul (as
    of January 24, 2008), Bettina Haller (as of January 24, 2008), *
    Heinz Hawreliuk,* Dr. Henning Schulte-Noelle (until January
    24, 2008), Lord Iain Vallance of Tummel (as of January 24, 2008).Finance and Investment
    Committee(1)

Chairman Dr. Gerhard Cromme, Dr. Josef Ackermann
    (until January 24, 2008,)(2) Lothar Adler (as of January 24,
    2008,)* Gerd von Brandenstein (as of January 24, 2008,)
    Håkan Samuelsson (as of January 24, 2008,) Dieter Scheitor
    (as of January 24, 2008,) * Dr. Albrecht Schmidt (until
    January 24, 2008,)(2) Birgit Steinborn (as of January 24, 2008.)*Nominating Committee

Chairman Dr. Gerhard Cromme, Dr. Josef Ackermann,
    Dr. Hans Michael Gaul (as of January 24, 2008),
    Dr. Henning Schulte-Noelle (until January 24, 2008).Mediation Committee

Chairman Dr. Gerhard Cromme, Ralf Heckmann,* Dr. Josef
    Ackermann, Heinz Hawreliuk (until January 24, 2008,)* Berthold
    Huber (as of January 24, 2008.)*     *
    Elected by employees.(1)
    Established by a resolution dated January 24, 2008 and
    replacing the Ownership Rights Committee established under
    §32 of the German Codetermination Act.(2)
    Member of the Ownership Rights Committee    Managing
    Board
      
    preparation of the annual financial statements;
    the calling of the Annual Shareholders Meeting and
    preparation and execution of the resolutions; and
    reports to the Supervisory Board and the Annual
    Shareholders Meeting concerning certain matters. 94




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##### Table of Contents



Companies at whichDate of

Term



Supervisory Board and similarName

birth

expires

Current position

positions were heldPeter Löscher

9/17/1957

3/31/2012

President and CEOJoe Kaeser

6/23/1957

3/31/2011

Executive Vice-President and CFO

Allianz Deutschland AG; Bayerische Börse AG; Enterprise
    Networks Holdings B.V.Wolfgang
    Dehen(1)

2/9/1954

3/31/2012

Executive Vice-President

TÜV Süd AGDr. Heinrich Hiesinger

5/25/1960

3/31/2012

Executive Vice-President

Rudi
    Lamprecht(2)

10/12/1948



Former Executive Vice-President

Eduardo
    Montes(2)

10/02/1951



Former Senior Vice-President

Grupo FerroAtlántica, S.L., Mecalux, S.A.Dr. Jürgen
    Radomski(2)

10/26/1941



Former Executive Vice-President

ALBA AG; Deutsche Krankenversicherung AG; Dräger Medical AG
    & Co. KGJim
    Reid-Anderson(3)

4/12/1959

4/30/2013

Executive Vice-President

Prof. Dr. Erich R.
    Reinhardt(3)

10/03/1946



Former Executive Vice-President

Dräger Medical AG & Co. KGProf. Dr. Hermann Requardt

2/11/1955

3/31/2011

Executive Vice-President

Dr. Siegfried
    Russwurm(1)

6/27/1963

3/31/2012

Executive Vice-President

Dr. Uriel J.
    Sharef(2)

8/19/1944



Former Executive Vice-President

Peter Y. Solmssen

1/24/1955

3/31/2012

Executive Vice-President

Prof. Dr. Klaus
    Wucherer(2)

7/09/1944



Former Executive Vice-President

Deutsche Messe AG; Gildemeister AG; Infineon Technologies AG;
    INPRO Innovationsgesellschaft für fortgeschrittene
    Produktionssysteme in der Fahrzeugindustrie mbH, LEONI AG; SAP
    AG     (1)
    Wolfgang Dehen and Dr. Siegfried Russwurm were elected as
    members of the Managing Board, effective January 1, 2008. 95




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##### Table of Contents



(2)
    Rudi Lamprecht, Eduardo Montes, Dr. Jürgen Radomski,
    Dr. Uriel J. Sharef and Prof. Dr. Klaus Wucherer
    ceased to be members of the Managing Board, effective
    December 31, 2007.(3)
    Prof. Dr. Erich Reinhardt ceased to be a member of the
    Managing Board, effective April 30, 2008. Jim Reid-Anderson
    was elected as a member of the Managing Board in his place,
    effective May 1, 2008.    Compensation
    Report
      Managing
    Board remuneration
          
    The fixed compensation is paid as a monthly salary.
    The variable bonus is based on the level of the Companys
    attainment of certain targets relating to return on
    capital employed (ROCE), economic value added
    (EVA) and Free cash flow as well as other financial goals, if
    any, that are set at the start of the fiscal year by the
    Chairmans Committee of the Supervisory Board (for
    information about the definitions of ROCE, EVA and Free cash
    flow, see Item 4: Information on the
    CompanyFinancial Performance Measures). One half of
    the bonus is paid as an annual bonus and is contingent upon
    achieving the Company-wide ROCE
    and/or EVA
    targets and Free cash flow targets established for the fiscal
    year. The other half is granted as a long-term bonus, the amount
    of which depends on the average attainment of ROCE
    and/or EVA
    targets or Free cash flow targets over a three-year period.
    Apart from the ROCE
    and/or EVA
    targets and the Free cash flow targets, the compliance targets
    uniformly applicable to senior management were agreed with the
    Managing Board. 96




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##### Table of Contents




    As of fiscal year 2006, the stock-based compensation has
    consisted only of stock awards.
    Under the Siemens Defined Contribution Benefit Plan (BSAV),
    members of the Managing Board receive contributions, the
    individual amounts of which are determined annually on the basis
    of a percentage of their respective target annual compensation
    established by the Chairmans Committee of the Supervisory
    Board. A portion of these contributions is accounted for by
    funding of pension commitments earned prior to transfer to the
    BSAV. In addition, special contributions may be granted on the
    basis of individual decisions.               97




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##### Table of Contents



Fair value of stock-Cash compensation


based compensation


Total2008


2007


2008


2007


2008


2007(Amounts in
    )(1)Managing Board members serving as of September 30,
    2008Peter Löscher


7,338,777



1,710,038



2,500,035



1,000,065



9,838,812



2,710,103Wolfgang
    Dehen(2)


1,674,702







1,000,022







2,674,724



Dr. Heinrich Hiesinger


2,176,043



763,373



1,000,022



750,025



3,176,065



1,513,398Joe Kaeser


2,463,932



2,502,886



1,000,022



750,025



3,463,954



3,252,911Jim
    Reid-Anderson(3)


811,741







1,000,022







1,811,763



Prof. Dr. Hermann Requardt


2,466,040



2,560,568



1,000,022



750,025



3,466,062



3,310,593Dr. Siegfried
    Russwurm(2)


1,770,654







1,000,022







2,770,676



Peter Y.
    Solmssen(4)


4,015,310







1,000,022







5,015,332



Former Managing Board membersDr. Klaus
    Kleinfeld(5)






5,332,028







750,000







6,082,028Prof. Johannes
    Feldmayer(5)






3,006,107















3,006,107Rudi
    Lamprecht(5)


242,232



2,993,188







750,025



242,232



3,743,213Eduardo
    Montes(5)(6)


212,258



2,606,764







750,025



212,258



3,356,789Dr. Jürgen
    Radomski(5)(8)


736,581



2,993,142







750,025



736,581



3,743,167Prof. Dr. Erich R.
    Reinhardt(6)(7)


1,302,235



2,679,371



1,000,022
(9)


750,025



2,302,257



3,429,396Dr. Uriel J.
    Sharef(5)


243,783



3,002,607







750,025



243,783



3,752,632Prof. Dr. Klaus
    Wucherer(5)


425,854



3,006,413







750,025



425,854



3,756,438Total


25,880,142



33,156,485



10,500,211



8,500,290



36,380,353



41,656,775     (1)
    The fair value of the stock-based compensation relates to stock
    awards granted in November 2008 and 2007 for fiscal years 2008
    and 2007, respectively.(2)
    Wolfgang Dehen and Dr. Siegfried Russwurm were elected full
    members of the Managing Board effective January 1, 2008.(3)
    Jim Reid-Anderson was elected a full member of the Managing
    Board effective May 1, 2008.(4)
    Peter Y. Solmssen was elected a full member of the Managing
    Board effective October 1, 2007.(5)
    Dr. Klaus Kleinfeld resigned from the Managing Board
    effective June 30, 2007; Prof. Johannes Feldmayer resigned
    from the Managing Board effective September 30, 2007; and
    Rudi Lamprecht, Eduardo Montes, Dr. Jürgen Radomski,
    Dr. Uriel J. Sharef and Prof. Dr. Klaus Wucherer
    resigned from the Managing Board effective December 31,
    2007.(6)
    Deputy members of the Managing Board until December 31,
    2007.(7)
    Prof. Dr. Erich R. Reinhardt was elected a full member of
    the Managing Board effective January 1, 2008 and resigned
    from the Managing Board, effective April 30, 2008.(8)
    On November 12, 2008, the Chairmans Committee of the
    Supervisory Board resolved, in view of the damage claims
    asserted against former Managing Board members, to exercise a
    right of lien or retention on the payment of annual and
    long-term bonuses to Dr. Jürgen Radomski.(9)
    15,494 stock awards with a fair value of 583,349 were
    granted to Prof. Dr. Erich R. Reinhardt in his capacity as
    member of the Managing Board; 11,067 stock awards with a fair
    value of 416,673 were granted to him pursuant to the
    service agreement in place as of his mutually agreed early
    resignation from the Managing Board.   98




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##### Table of Contents



99




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##### Table of Contents



Cash compensationSalary


Annual bonus


Long term bonus


Other(1)


Total2008


2007


2008


2007


2008


2007


2008


2007


2008


2007(Amounts in )Managing Board members serving as of 
    September 30, 2008Peter Löscher


1,980,000



495,000



1,972,530



604,132



2,085,473



604,132



1,300,774



6,774



7,338,777



1,710,038Wolfgang
    Dehen(2)


585,000







581,357







460,442







47,903







1,674,702



Dr. Heinrich Hiesinger


780,000



260,000



675,521



311,038



676,699



189,566



43,823



2,769



2,176,043



763,373Joe Kaeser


780,000



780,000



761,670



933,114



854,995



756,990



67,267



32,782



2,463,932



2,502,886Jim
    Reid-Anderson(3)


325,000







241,503







241,503







3,735







811,741



Prof. Dr. Hermann Requardt


780,000



780,000



761,670



933,114



862,325



814,320



62,045



33,134



2,466,040



2,560,568Dr. Siegfried
    Russwurm(2)


585,000







571,253







583,445







30,956







1,770,654



Peter Y.
    Solmssen(4)


780,000







761,670







761,670







1,711,970







4,015,310



Former Managing Board membersDr. Klaus
    Kleinfeld(5)






1,704,320







1,796,750







1,796,750







34,208







5,332,028Prof. Johannes
    Feldmayer(5)






936,000







1,119,737







910,822







39,548







3,006,107Rudi
    Lamprecht(5)


234,000



936,000







1,119,737







910,822



8,232



26,629



242,232



2,993,188Eduardo
    Montes(5)(6)


195,000



780,000







933,114







824,499



17,258



69,151



212,258



2,606,764Dr. Jürgen
    Radomski(5)(8)


234,000



936,000



228,501



1,119,737



266,683



910,822



7,397



26,583



736,581



2,993,142Prof. Dr. Erich R.
    Reinhardt(6)(7)


455,000



780,000



322,799



1,026,051



503,381



843,024



21,055



30,296



1,302,235



2,679,371Dr. Uriel J.
    Sharef(5)


234,000



936,000







1,119,737







910,822



9,783



36,048



243,783



3,002,607Prof. Dr. Klaus
    Wucherer(5)


234,000



936,000







1,119,737







910,822



191,854



39,854



425,854



3,006,413Total


8,181,000



10,259,320



6,878,474



12,135,998



7,296,616



10,383,391



3,524,052



377,776



25,880,142



33,156,485     (1)
    Other compensation includes non-cash benefits e.g. in the form
    of company cars of 212,395 (2007: 282,102),
    subsidized insurance of 65,978 (2007: 48,634),
    reimbursement of legal and/or tax advice fees, accommodation and
    moving expenses of 3,245,679 (2007: 47,040).(2)
    Wolfgang Dehen and Dr. Siegfried Russwurm were elected full
    members of the Managing Board effective January 1, 2008.(3)
    Jim Reid-Anderson was elected a full member of the Managing
    Board effective May 1, 2008.(4)
    Peter Y. Solmssen was elected a full member of the Managing
    Board effective October 1, 2007.(5)
    Dr. Klaus Kleinfeld resigned from the Managing Board
    effective June 30, 2007; Prof. Johannes Feldmayer resigned
    from the Managing Board effective September 30, 2007; and
    Rudi Lamprecht, Eduardo Montes, Dr. Jürgen Radomski,
    Dr. Uriel J. Sharef and Prof. Dr. Klaus Wucherer
    resigned from the Managing Board effective December 31,
    2007.(6)
    Deputy members of the Managing Board until December 31,
    2007.(7)
    Prof. Dr. Erich R. Reinhardt was elected a full member of
    the Managing Board effective January 1, 2008 and resigned
    from the Managing Board effective April 30, 2008.(8)
    On November 12, 2008, the Chairmans Committee of the
    Supervisory Board resolved, in view of the damage claims
    asserted against former Managing Board members, to exercise a
    right of lien or retention on the payment of annual and
    long-term bonuses to Dr. Jürgen Radomski.   100




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##### Table of Contents



Fair value of stockNumber of units


awardsStock
    awards(2)


Stock
    awards(2)Stock-based compensation

2008


2007


2008


2007(Amounts in number of units or
    )(1)Managing Board members serving as of
    September 30, 2008Peter Löscher


66,402



10,211



2,500,035



1,000,065Wolfgang
    Dehen(3)


26,561







1,000,022



Dr. Heinrich Hiesinger


26,561



7,658



1,000,022



750,025Joe Kaeser


26,561



7,658



1,000,022



750,025Jim
    Reid-Anderson(4)


26,561







1,000,022



Prof. Dr. Hermann Requardt


26,561



7,658



1,000,022



750,025Dr. Siegfried
    Russwurm(3)


26,561







1,000,022



Peter Y.
    Solmssen(5)


26,561







1,000,022



Former Managing Board membersDr. Klaus
    Kleinfeld(6)














750,000Prof. Johannes
    Feldmayer(6)














Rudi
    Lamprecht(6)






7,658







750,025Eduardo
    Montes(6)(7)






7,658







750,025Dr. Jürgen
    Radomski(6)






7,658







750,025Prof. Dr. Erich R.
    Reinhardt(7)(8)


26,561
(9)


7,658



1,000,022
(9)


750,025Dr. Uriel J.
    Sharef(6)






7,658







750,025Prof. Dr. Klaus
    Wucherer(6)






7,658







750,025Total


278,890



79,133



10,500,211



8,500,290     (1)
    The fair value of the stock-based compensation relates to stock
    awards granted in November 2008 and 2007 for fiscal years 2008
    and 2007, respectively.(2)
    After a waiting period of three years, the stock awards will be
    settled on November 14, 2011 (awards granted for fiscal
    year 2007 on November 9, 2010). Under the stock award
    agreement, the eligible recipients will receive a corresponding
    number of Siemens shares without additional payment.(3)
    Wolfgang Dehen and Dr. Siegfried Russwurm were elected full
    members of the Managing Board effective January 1, 2008.(4)
    Jim Reid-Anderson was elected a full member of the Managing
    Board effective May 1, 2008.(5)
    Peter Y. Solmssen was elected a full member of the Managing
    Board effective October 1, 2007.(6)
    Dr. Klaus Kleinfeld resigned from the Managing Board
    effective June 30, 2007; Prof. Johannes Feldmayer resigned
    from the Managing Board effective September 30, 2007; and
    Rudi Lamprecht, Eduardo Montes, Dr. Jürgen Radomski,
    Dr. Uriel J. Sharef and Prof. Dr. Klaus Wucherer
    resigned from the Managing Board effective December 31,
    2007.(7)
    Deputy members of the Managing Board until December 31,
    2007.(8)
    Prof. Dr. Erich R. Reinhardt was elected a full member of
    the Managing Board effective January 1, 2008 and resigned
    from the Managing Board effective April 30, 2008.(9)
    15,494 stock awards with a fair value of 583,349 were
    granted to Prof. Dr. Erich R. Reinhardt in his capacity as
    member of the Managing Board; 11,067 stock awards with a fair
    value of 416,673 were granted to him pursuant to the
    service agreement in place as of his mutually agreed early
    resignation from the Managing Board. 101




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##### Table of Contents



Stock awardsBalance at beginning


Granted


Vested


Forfeited


Balance at the endof fiscal year 2008


during fiscal year


during fiscal year


during fiscal year


of fiscal year
    2008(1)Weighted





Weighted





Weighted





Weighted





Weightedaverage





average





average





average





averagegrant-date





grant-date





grant-date





grant-date





grant-dateAwards


fair value


Awards


fair value


Awards


fair value


Awards


fair value


Awards


fair value(Amounts in number of units or )Managing Board members serving as of September 30,
    2008Peter Löscher










10,211



97.94



















10,211



97.94Wolfgang
    Dehen(2)


5,233



62.15



























5,233



62.15Dr. Heinrich Hiesinger


4,423



62.76



7,658



97.94



















12,081



85.06Joe Kaeser


6,217



64.48



7,658



97.94



















13,875



82.95Jim
    Reid-Anderson(3)






































Prof. Dr. Hermann Requardt


5,199



62.91



7,658



97.94



















12,857



83.77Dr. Siegfried
    Russwurm(2)


2,137



63.04



1,225



97.94



















3,362



75.75Peter Y.
    Solmssen(4)






































Former Managing Board membersDr. Klaus
    Kleinfeld(5)


28,095



58.80



























28,095



58.80Prof. Johannes
    Feldmayer(5)


16,588



56.44



























16,588



56.44Rudi
    Lamprecht(5)


13,904



59.89



7,658



97.94



















21,562



73.40Eduardo
    Montes(5)(6)


4,083



64.62



7,658



97.94



















11,741



86.35Dr. Jürgen
    Radomski(5)


26,481



58.24



7,658



97.94



1,639



60.14











32,500



67.50Prof. Dr. Erich R.
    Reinhardt(6)(7)


6,154



61.92



7,658



97.94



















13,812



81.89Dr. Uriel J.
    Sharef(5)


26,605



58.25



7,658



97.94



1,763



60.14











32,500



67.50Prof. Dr. Klaus
    Wucherer(5)


26,605



58.25



7,658



97.94



1,763



60.14











32,500



67.50Total


171,724



59.24



80,358



97.94



5,165



60.14











246,917



71.82     (1)
    Amounts do not include stock awards granted in November 2008 for
    fiscal year 2008. For details see above. However, these amounts
    may include stock awards received as compensation by the
    Managing Board member before appointment to the Managing Board.(2)
    Wolfgang Dehen and Dr. Siegfried Russwurm were elected full
    members of the Managing Board effective January 1, 2008.(3)
    Jim Reid-Anderson was elected a full member of the Managing
    Board effective May 1, 2008.(4)
    Peter Y. Solmssen was elected a full member of the Managing
    Board effective October 1, 2007.(5)
    Dr. Klaus Kleinfeld resigned from the Managing Board
    effective June 30, 2007; Prof. Johannes Feldmayer resigned
    from the Managing Board effective September 30, 2007; and
    Rudi Lamprecht, Eduardo Montes, Dr. Jürgen Radomski,
    Dr. Uriel J. Sharef and Prof. Dr. Klaus Wucherer
    resigned from the Managing Board effective December 31,
    2007.(6)
    Deputy members of the Managing Board until December 31,
    2007.(7)
    Prof. Dr. Erich R. Reinhardt was elected a full member of
    the Managing Board effective January 1, 2008 and resigned
    from the Managing Board effective April 30, 2008.  102




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##### Table of Contents



Stock optionsBalance at beginning


Granted


Exercised


Forfeited


Balance at theof fiscal year 2008


during fiscal year


during fiscal year


during fiscal year


end of fiscal year
    2008(1)Weighted





Weighted





Weighted





Weighted





Weightedaverage





average





average





average





averageexercise





exercise





exercise





exercise





exerciseOptions


price


Options


price


Options


price


Options


price


Options


price(Amounts in number of units or )Managing Board members serving as of September 30,
    2008Peter Löscher






































Wolfgang
    Dehen(2)


17,295



74.59











17,295



74.59















Dr. Heinrich Hiesinger


23,755



73.56



























23,755



73.56Joe Kaeser


38,850



70.44











6,000



53.70











32,850



73.50Jim
    Reid-Anderson(3)






































Prof. Dr. Hermann Requardt


27,480



73.74



























27,480



73.74Dr. Siegfried
    Russwurm(2)


18,060



75.04











18,060



75.04















Peter Y.
    Solmssen(4)






































Former Managing Board membersDr. Klaus
    Kleinfeld(5)






































Prof. Johannes
    Feldmayer(5)






































Rudi
    Lamprecht(5)


45,465



73.85











45,465



73.85















Eduardo
    Montes(5)(6)


17,800



73.57











17,800



73.57















Dr. Jürgen
    Radomski(5)


28,945



74.59











28,945



74.59















Prof. Dr. Erich R.
    Reinhardt(6)(7)


63,450



75.35



















8,775



86.23



54,675



73.60Dr. Uriel J.
    Sharef(5)


111,480



68.16











30,000



53.70











81,480



73.49Prof. Dr. Klaus
    Wucherer(5)


81,480



73.49











81,480



73.49















Total


474,060



72.46











245,045



70.98



8,775



86.23



220,240



73.56     (1)
    Amounts may include stock options received as compensation by
    the Managing Board member before appointment to the Managing
    Board.(2)
    Wolfgang Dehen and Dr. Siegfried Russwurm were elected full
    members of the Managing Board effective January 1, 2008.(3)
    Jim Reid-Anderson was elected a full member of the Managing
    Board effective May 1, 2008.(4)
    Peter Y. Solmssen was elected a full member of the Managing
    Board effective October 1, 2007.(5)
    Dr. Klaus Kleinfeld resigned from the Managing Board
    effective June 30, 2007; Prof. Johannes Feldmayer resigned
    from the Managing Board effective September 30, 2007; and
    Rudi Lamprecht, Eduardo Montes, Dr. Jürgen Radomski,
    Dr. Uriel J. Sharef and Prof. Dr. Klaus Wucherer
    resigned from the Managing Board effective December 31,
    2007.(6)
    Deputy members of the Managing Board until December 31,
    2007.(7)
    Prof. Dr. Erich R. Reinhardt was elected a full member of
    the Managing Board effective January 1, 2008 and resigned
    from the Managing Board effective April 30, 2008.  103




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##### Table of Contents



Options outstanding


Options exercisableat September 30, 2008


at September 30, 2008Weighted





WeightedNumber


average


Number of


averageof options


remaining life


options


remaining lifeStock options

Exercise price


outstanding


(in years)


exercisable


(in years)(Amounts in number of units or in )Managing Board members serving as of September 30,
    2008Peter Löscher


















Wolfgang
    Dehen(1)


















Dr. Heinrich Hiesinger


72.54



11,910



1.2



11,910



1.2Dr. Heinrich Hiesinger


74.59



11,845



2.2



11,845



2.2Joe Kaeser


73.25



11,000



0.1



11,000



0.1Joe Kaeser


72.54



10,355



1.2



10,355



1.2Joe Kaeser


74.59



11,495



2.2



11,495



2.2Jim
    Reid-Anderson(2)


















Prof. Dr. Hermann Requardt


72.54



11,390



1.2



11,390



1.2Prof. Dr. Hermann Requardt


74.59



16,090



2.2



16,090



2.2Dr. Siegfried
    Russwurm(1)


















Peter Y.
    Solmssen(3)


















Former Managing Board membersDr. Klaus
    Kleinfeld(4)


















Prof. Johannes
    Feldmayer(4)


















Rudi
    Lamprecht(4)


















Eduardo
    Montes(4)(5)


















Dr. Jürgen
    Radomski(4)


















Prof. Dr. Erich R.
    Reinhardt(5)(6)


73.25



15,000



0.1



15,000



0.1Prof. Dr. Erich R.
    Reinhardt(5)(6)


72.54



16,520



1.2



16,520



1.2Prof. Dr. Erich R.
    Reinhardt(5)(6)


74.59



23,155



2.2



23,155



2.2Dr. Uriel J.
    Sharef(4)


73.25



25,000



0.1



25,000



0.1Dr. Uriel J.
    Sharef(4)


72.54



27,535



1.2



27,535



1.2Dr. Uriel J.
    Sharef(4)


74.59



28,945



2.2



28,945



2.2Prof. Dr. Klaus
    Wucherer(4)


















Total


73.56



220,240







220,240     (1)
    Wolfgang Dehen and Dr. Siegfried Russwurm were elected full
    members of the Managing Board effective January 1, 2008.(2)
    Jim Reid-Anderson was elected a full member of the Managing
    Board effective May 1, 2008.(3)
    Peter Y. Solmssen was elected a full member of the Managing
    Board effective October 1, 2007.(4)
    Dr. Klaus Kleinfeld resigned from the Managing Board
    effective June 30, 2007; Prof. Johannes Feldmayer resigned
    from the Managing Board effective September 30, 2007; and
    Rudi Lamprecht, Eduardo Montes, Dr. Jürgen Radomski,
    Dr. Uriel J. Sharef and Prof. Dr. Klaus Wucherer
    resigned from the Managing Board effective December 31,
    2007.(5)
    Deputy members of the Managing Board until December 31,
    2007.(6)
    Prof. Dr. Erich R. Reinhardt was elected a full member of
    the Managing Board effective January 1, 2008 and resigned
    from the Managing Board effective April 30, 2008.  104




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##### Table of Contents



Weightedaverage marketprice on dateStock options exercised in fiscal year 2008

Number of options


of exercise(Amounts in number of units or in )Managing Board members serving as of September 30,
    2008Peter Löscher






Wolfgang
    Dehen(1)


17,295



96.25Dr. Heinrich Hiesinger






Joe Kaeser


6,000



96.25Jim
    Reid-Anderson(2)






Prof. Dr. Hermann Requardt






Dr. Siegfried
    Russwurm(1)


18,060



100.64Peter Y.
    Solmssen(3)






Former Managing Board membersDr. Klaus
    Kleinfeld(4)






Prof. Johannes
    Feldmayer(4)






Rudi
    Lamprecht(4)


45,465



107.99Eduardo
    Montes(4)(5)


17,800



106.18Dr. Jürgen
    Radomski(4)


28,945



96.06Prof. Dr. Erich R.
    Reinhardt(5)(6)






Dr. Uriel J.
    Sharef(4)


30,000



96.79Prof. Dr. Klaus
    Wucherer(4)


81,480



102.50Total


245,045



101.59     (1)
    Wolfgang Dehen and Dr. Siegfried Russwurm were elected full
    members of the Managing Board effective January 1, 2008.(2)
    Jim Reid-Anderson was elected a full member of the Managing
    Board effective May 1, 2008.(3)
    Peter Y. Solmssen was elected a full member of the Managing
    Board effective October 1, 2007.(4)
    Dr. Klaus Kleinfeld resigned from the Managing Board
    effective June 30, 2007; Prof. Johannes Feldmayer resigned
    from the Managing Board effective September 30, 2007; and
    Rudi Lamprecht, Eduardo Montes, Dr. Jürgen Radomski,
    Dr. Uriel J. Sharef and Prof. Dr. Klaus Wucherer
    resigned from the Managing Board effective December 31,
    2007.(5)
    Deputy members of the Managing Board until December 31,
    2007.(6)
    Prof. Dr. Erich R. Reinhardt was elected a full member of
    the Managing Board effective January 1, 2008 and resigned
    from the Managing Board effective April 30, 2008.  Pension benefit commitments
   105




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##### Table of Contents



Information pursuant to Section 4.2.5 para. 2, 2nd sentence
    of theGerman Corporate Governance CodeOf which, fundingBalance





of pensionof BSAV account





commitments earned


Of which,at September 30,


Total contribution


prior to transfer


contributions toDefined Contribution Benefit Plan (BSAV)

2008(1)


for fiscal 2008


to the BSAV


the BSAV account(Amounts in )Managing Board members serving as of September 30,
    2008Peter Löscher


8,780,000
(10)


1,120,000







1,120,000Wolfgang
    Dehen(2)


357,173



436,800



33,660



403,140Dr. Heinrich Hiesinger


657,760



436,800



31,322



405,478Joe Kaeser


969,292



436,800



24,097



412,703Jim
    Reid-Anderson(3)






182,000







182,000Prof. Dr. Hermann Requardt


916,710



436,800



27,816



408,984Dr. Siegfried
    Russwurm(2)


199,751



436,800



12,750



424,050Peter Y.
    Solmssen(4)






436,800







436,800



10,518,000
(8)






10,518,000Former Managing Board membersDr. Klaus
    Kleinfeld(5)


1,770,506











Prof. Johannes
    Feldmayer(5)


1,081,518











Rudi
    Lamprecht(5)


1,134,849



131,040



28,138



102,902Eduardo
    Montes(5)(6)


503,541



109,200



18,593



90,607Dr. Jürgen
    Radomski(5)(9)














Prof. Dr. Erich R.
    Reinhardt(6)(7)


918,535



222,775







222,775Dr. Uriel J.
    Sharef(5)


1,446,830



92,500







92,500Prof. Dr. Klaus
    Wucherer(5)


1,058,960



92,500







92,500Total


19,795,425



15,088,815



176,376



14,912,439     (1)
    In each case, including the additions in January 2008, but
    without reflecting minimum interest of currently 2.25% accrued
    in the meantime.(2)
    Wolfgang Dehen and Dr. Siegfried Russwurm were elected full
    members of the Managing Board effective January 1, 2008.(3)
    Jim Reid-Anderson was elected a full member of the Managing
    Board effective May 1, 2008.(4)
    Peter Y. Solmssen was elected a full member of the Managing
    Board effective October 1, 2007.(5)
    Dr. Klaus Kleinfeld resigned from the Managing Board
    effective June 30, 2007; Prof. Johannes Feldmayer resigned
    from the Managing Board effective September 30, 2007; and
    Rudi Lamprecht, Eduardo Montes, Dr. Jürgen Radomski,
    Dr. Uriel J. Sharef and Prof. Dr. Klaus Wucherer
    resigned from the Managing Board effective December 31,
    2007.(6)
    Deputy members of the Managing Board until December 31,
    2007.(7)
    Prof. Dr. Erich R. Reinhardt was elected a full member of
    the Managing Board effective January 1, 2008 and resigned
    from the Managing Board effective April 30, 2008.(8)
    Special additions as of January 2009; for details see above
    (page 100).(9)
    Dr. Radomski was not transferred to the BSAV.(10)
    Including special additions of 8.5 million promised
    to Mr. Löscher in fiscal year 2007.     106




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##### Table of Contents



Other
  Supervisory
    Board remuneration
          
    a fixed compensation component,
    a short-term compensation component based on earnings per
    share, and
    a long-term compensation component based on earnings per share.    107




---



##### Table of Contents



2008


2007Short-term


Long-term








Short-term


Long-termFixed


variable


variable





Fixed


variable


variablecompensation


compensation


compensation


Total


compensation


compensation


compensation


Total(Amounts in )Supervisory Board members serving as of September 30,
    2008Dr. Gerhard
    Cromme(1)


125,000



184,875







309,875



114,583



122,031



33,333



269,947Ralf
    Heckmann(1)


100,000



147,900







247,900



100,000



106,500



33,333



239,833Dr. Josef
    Ackermann(1)


75,000



110,925







185,925



75,000



79,875



33,333



188,208Lothar Adler


50,000



73,950







123,950



50,000



53,250



33,333



136,583Jean-Louis
    Beffa(2)


37,500



55,463







92,963















Gerd von
    Brandenstein(2)


37,500



55,463







92,963















Michael
    Diekmann(2)


37,500



55,463







92,963















Dr. Hans Michael
    Gaul(1)(2)


75,000



110,925







185,925















Prof. Dr. Peter
    Gruss(2)


37,500



55,463







92,963















Bettina Haller


50,000



73,950







123,950



25,000



26,625



8,333



59,958Heinz
    Hawreliuk(1)


75,000



110,925







185,925



75,000



79,875



33,333



188,208Berthold Huber


50,000



73,950







123,950



50,000



53,250



33,333



136,583Harald
    Kern(2)


37,500



55,463







92,963















Dr. Nicola
    Leibinger-Kammüller(2)


37,500



55,463







92,963















Werner
    Mönius(2)


37,500



55,463







92,963















Håkan
    Samuelsson(2)


37,500



55,463







92,963















Dieter
    Scheitor(1)


68,750



101,681







170,431



37,500



39,938



10,833



88,271Dr. Rainer
    Sieg(2)


37,500



55,463







92,963















Birgit
    Steinborn(2)


37,500



55,463







92,963















Lord Iain Vallance of
    Tummel(1)


68,750



101,681







170,431



50,000



53,250



33,333



136,583Former Supervisory Board membersProf. Dr. Heinrich v. Pierer


















72,917



77,656



23,333



173,906Gerhard
    Bieletzki(3)


12,500



18,488







30,988



50,000



53,250



32,500
(5)


135,750John David
    Coombe(1)(4)


25,000



36,975







61,975



62,500



66,563



33,333



162,396Hildegard
    Cornudet(4)


16,667



24,650







41,317



50,000



53,250



33,333



136,583Birgit
    Grube(4)


16,667



24,650







41,317



50,000



53,250



33,333



136,583Prof. Dr. Walter
    Kröll(4)


16,667



24,650







41,317



50,000



53,250



33,333



136,583Prof. Dr. Michael
    Mirow(4)


16,667



24,650







41,317



25,000



26,625



8,333



59,958Roland
    Motzigemba(3)(4)


8,333



12,325







20,658











1,667
(5)


1,667Wolfgang Müller


















16,667



17,750



23,333



57,750Georg Nassauer


















25,000



26,625



25,000



76,625Thomas
    Rackow(4)


16,667



24,650







41,317



50,000



53,250



20,833



124,083Dr. Albrecht
    Schmidt(4)


16,667



24,650







41,317



50,000



53,250



33,333



136,583Dr. Henning
    Schulte-Noelle(1)(4)


33,333



49,300







82,633



87,500



93,188



33,333



214,021Peter von
    Siemens(4)


16,667



24,650







41,317



50,000



53,250



33,333



136,583Jerry I.
    Speyer(4)


16,667



24,650







41,317



50,000



53,250



33,333



136,583Klaus Wigand


























13,333



13,333Total


1,325,002



1,959,680







3,284,682



1,266,667



1,349,001



667,493



3,283,161     (1)
    Each of Dr. Gerhard Cromme as Chairman of the Supervisory
    Board and member of the Audit Committee; Ralf Heckmann as Deputy
    Chairman of the Supervisory Board and member of the Audit
    Committee; Dr. Josef Ackermann as Deputy Chairman of the
    Supervisory Board; Dr. Henning Schulte-Noelle as Chairman
    and member of the Audit Committee (based on length of service in
    each position); Dr. Hans Michael Gaul as Chairman of the
    Audit Committee, John David Coombe, Heinz Hawreliuk, Dieter
    Scheitor and Lord Iain Vallance of Tummel as members of the
    Audit Committee receive higher fixed and variable compensation
    (based on the length of service in the case of Dr. Hans
    Michael Gaul, John David Coombe, Dieter Scheitor and Lord Iain
    Vallance of Tummel).(2)
    With effect as of the conclusion of the Annual
    Shareholders Meeting of Siemens AG on January 24,
    2008, Jean-Louis Beffa, Gerd von Brandenstein, Michael Diekmann,
    Dr. Hans Michael Gaul, Prof. Dr. Peter Gruss, Harald
    Kern, Dr. Nicola Leibinger-Kammüller, Werner
    Mönius, Håkan Samuelsson, Dr. Rainer Sieg and
    Birgit Steinborn were elected new members of the Supervisory
    Board. 108




---



##### Table of Contents



(3)
    Roland Motzigemba, formerly a substitute member of the
    Supervisory Board, became a member of the Supervisory Board of
    Siemens AG as a successor to Gerhard Bieletzki with effect from
    December 3, 2007.(4)
    John David Coombe, Hildegard Cornudet, Birgit Grube, Prof.
    Dr. Walter Kröll, Prof. Dr. Michael Mirow, Roland
    Motzigemba, Thomas Rackow, Dr. Albrecht Schmidt,
    Dr. Henning Schulte-Noelle, Peter von Siemens and Jerry I.
    Speyer resigned from the Supervisory Board at the close of the
    Annual Shareholders Meeting on January 24, 2008.(5)
    As explained in the Compensation Report 2007, the amounts of the
    long-term variable compensation shown for 2007 were subject to
    contuining membership on the Supervisory Board until the close
    of the Annual Shareholders Meeting on January 24,
    2008. As Gerhard Bieletzki resigned from the Supervisory Board
    with effect from December 3, 2007, the amount payable to
    him was reduced on a pro rata basis, and a pro rata amount was
    paid to Roland Motzigemba, who became a member of the
    Supervisory Board as a successor to Gerhard Bieletzki.      Other
    Stock-Based
    Compensation
  Stock
    Option Plan
         109




---



##### Table of Contents



Stock
    Awards
            With respect to

With respect to

With respect tostock awards granted in

stock awards granted in

stock awards granted infiscal 2009

fiscal 2008

fiscal 2007Number of stock awards granted

1,992,392

737,621

1,232,893Value per stock award at grant date

37.65

97.94

67.70Total value of stock awards granted

75.0 million

72.2 million

83.5 million    110




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##### Table of Contents



Share
    ownership
        Function/Status atTrading



Time of



WKN/




Number of


PriceDay

Name

Transaction

Security

ISIN


Trade

Securities


in 


Comment11/19/2007

Jürgen
    Radomski

Managing
    Board
    Member

Siemens
    Share


7236101


Sale


28,945



96.06


Sale in the context of the Siemens Stock Option Plan 200111/20/2007

Uriel
    Sharef

Managing
    Board
    Member

Siemens
    Share


7236101


Sale


30,000



96.79


Sale in the context of the Siemens Stock Option Plan 200111/21/2007

Joe
    Kaeser

Managing
    Board
    Member

Siemens
    Share


7236101


Sale


4,714



96.25


Sale in the context of the Siemens Stock Option Plan 200111/30/2007

Rudi
    Lamprecht

Managing
    Board
    Member

Siemens
    Share


7236101


Sale


570



102.47


Regular Sale of Siemens Shares11/30/2007

Rudi
    Lamprecht

Managing
    Board
    member

Siemens
    Share


7236101


Sale


1,430



102.48


Regular Sale of Siemens Shares12/3/2007

Klaus
    Wucherer

Managing
    Board
    Member

Siemens
    Share


7236101


Sale


81,480



102.50


Sale in the context of the Siemens Stock Option Plan 2001 111




---



##### Table of Contents



Function/Status atTrading



Time of



WKN/




Number of


PriceDay

Name

Transaction

Security

ISIN


Trade

Securities


in 


Comment12/7/2007

Thomas
    Rackow

Supervisory
    Board
    Member

Siemens
    Share


7236101


Sale


5,145



106.18


Sale in the context of the Siemens Stock Option Plan 200112/7/2007

Eduardo
    Montes

Managing
    Board
    Member

Siemens
    Share


7236101


Sale


17,800



106.18


Sale in the context of the Siemens Stock Option Plan 200112/10/2007

Rudi
    Lamprecht

Managing
    Board
    Member

Siemens
    Share


7236101


Sale


45,465



107.99


Sale in the context of the Siemens Stock Option Plan 200112/14/2007

Hermann
    Requardt

Managing
    Board
    Member

Siemens
    Call
    Warrants


DE000CM
    72684


Sale


20,000



1.20


Regular Sale of Siemens Call Warrants1/28/2008

Peter
    Löscher

President of
    Managing
    Board

Siemens
    Share


7236101


Buy


50,000



81.56


Regular Purchase of Siemens Shares1/28/2008

Erich R.
    Reinhardt

Managing
    Board
    member

Siemens
    Share


7236101


Buy


6,000



81.35


Regular Purchase of Siemens Shares1/28/2008

Siegfried
    Russwurm

Managing
    Board
    Member

Siemens
    Share


7236101


Buy


2,500



81.05


Regular Purchase of Siemens Shares1/28/2008

Hermann
    Requardt

Managing
    Board
    Member

Siemens
    Share


7236101


Buy


2,500



82.14


Regular Purchase of Siemens Shares1/28/2008

Peter Y
    Solmssen

Managing
    Board
    Member

Siemens
    ADRs


US8261975010


Buy


1,875



USD 123.53


Regular Purchase of Siemens ADRs1/28/2008

Heinrich
    Hiesinger

Managing
    Board
    Member

Siemens
    Share


7236101


Buy


3,050



81.05


Regular Purchase of Siemens Shares1/28/2008

Joe
    Kaeser

Managing
    Board
    Member

Siemens
    Share


7236101


Buy


1,000



82.50


Regular Purchase of Siemens Shares1/29/2008

Wolfgang
    Dehen

Managing
    Board
    Member

Siemens
    Share


7236101


Buy


2,500



84.25


Regular Purchase of Siemens Shares1/30/2008

Joe
    Kaeser

Managing
    Board
    Member

Siemens
    Share


7236101


Buy


1,000



86.78


Regular Purchase of Siemens Shares 112




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##### Table of Contents



Function/Status atTrading



Time of



WKN/




Number of


PriceDay

Name

Transaction

Security

ISIN


Trade

Securities


in 


Comment2/1/2008

Joe
    Kaeser

Managing
    Board
    Member

Siemens
    Hybrid
    Bond 
    Siemens
    Financier
    ingsmaat
    schappij N.V.


XS0266838746


Buy


1,500



94.68


Regular Purchase of Siemens Hybrid Bond2/1/2008

Joe
    Kaeser

Managing
    Board
    Member

Siemens
    Share


7236101


Buy


1,000



89.07


Regular Purchase of Siemens Shares3/17/2008

Peter
    Löscher

President of
    Managing
    Board

Siemens
    Share


7236101


Buy


50,000



66.31


Regular Purchase of Siemens Shares3/17/2008

Joe
    Kaeser

Managing
    Board
    Member

Siemens
    Share


7236101


Buy


3,000



65.97


Regular Purchase of Siemens Shares3/17/2008

Hermann
    Requardt

Managing
    Board
    Member

Siemens
    Share


7236101


Buy


2,000



67.74


Regular Purchase of Siemens Shares4/9/2008

Peter Y
    Solmssen

Managing
    Board
    Member

Siemens
    Share


7236101


Buy


5,000



71.03


Regular Purchase of Siemens Shares4/11/2008

Peter Y
    Solmssen

Managing
    Board
    Member

Siemens
    Share


7236101


Buy


6,000



68.00


Regular Purchase of Siemens Shares    113




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ITEM 7:
    MAJOR
    SHAREHOLDERS AND RELATED PARTY TRANSACTIONS  Major
    Shareholders
      Related
    Party Transactions
             114




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ITEM 8:
    FINANCIAL
    INFORMATION    ITEM 9:
    THE
    OFFER AND LISTING  Trading
    Markets
    Market
    Price Information
    115




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##### Table of Contents



Price per








Averageordinary share


DAX


daily tradingHigh


Low


High


Low


volume(1)()








(millions ofshares)Annual highs and lows2003


64.85



32.55



3,965.2



2,203.0



6.2742004


68.30



53.40



4,261.8



3,647.0



4.7832005


73.78



56.20



5,458.6



4,178.1



4.7282006


79.77



61.37



6,611.8



5,292.1



5.3132007


111.17



75.32



8,105.7



6,447.7



7.4222008(2)


107.29



35.52



7,949.1



4,127.4



7.680Quarterly highs and lows2006First quarter


79.25



70.00



5,984.2



5,334.3



4.940Second quarter


79.77



61.37



6,140.7



5,292.1



6.600Third quarter


68.80



61.90



6,004.3



5,396.9



4.558Fourth quarter


76.27



66.91



6,611.8



5,992.2



5.2492007First quarter


85.50



75.32



7,027.6



6,447.7



6.660Second quarter


107.38



79.93



8,090.5



6,937.2



8.594Third quarter


111.17



86.29



8,105.7



7,270.1



7.992Fourth quarter


108.86



89.75



8,076.1



7,512.0



6.4552008First quarter


107.29



66.42



7,949.1



6,182.3



8.907Second quarter


77.10



67.90



7,225.9



6,418.3



5.958Third quarter


79.38



64.91



6,609.6



5,807.1



6.059Fourth
    quarter(2)


63.73



35.52



5,806.3



4,127.4



11.296Monthly highs and lows2008June


75.65



69.96



7,019.1



6,418.3



6.664July


78.76



68.05



6,536.1



6,081.7



6.782August


79.38



73.36



6,609.6



6,237.0



3.895September


75.37



64.91



6,518.5



5,807.1



7.367October


63,73



35,52



5,806.3



4,295.7



13.374November(2)


50.38



39.98



5,278.0



4,127.4



8.310     (1)
    Data from Datastream International.(2)
    Up to and including November 24, 2008.    Trading
    on the New York Stock Exchange
   116




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Price per ADSHigh


Low($)Annual highs and lows2003


79.98



36.612004


87.50



65.482005


87.02



71.732006


98.76



76.662007


158.48



98.212008(1)


157.14



44.54Quarterly highs and lows2006First quarter


94.05



84.23Second quarter


98.76



76.66Third quarter


87.64



78.80Fourth quarter


98.59



83.982007First quarter


112.24



98.21Second quarter


143.17



107.26Third quarter


154.03



116.75Fourth quarter


158.48



127.972008First quarter


157.14



104.93Second quarter


120.60



106.70Third quarter


122.20



92.57Fourth
    quarter(1)


90.20



44.54Monthly highs and lows2008June


117.28



109.10July


122.20



106.45August


121.98



107.96September


108.80



92.57October


90.20



44.54November(1)


66.01



47.75     (1)
    Up to and including November 24, 2008.   117




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##### Table of Contents



ITEM 10:
    ADDITIONAL
    INFORMATION  Articles
    of Association and Relevant Provisions of German Law
  Satzung
  Organization
  Aktiengesetz Handelsregister
  Corporate
    Governance
        Management
    and Control Structure
  The
    Supervisory Board
  Mitbestimmungsgesetz
  and/or
 118




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Chairmans Committee
  Audit Committee Rule 10A-3(b)(1)(iv)(C) Rule 10A-3.
    Compliance Committee,
 119




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Nominating Committee,
  Mediation Committee
  Finance and Investment Committee,
  The
    Managing Board
      Shareholder
    Relations
     120




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Business
    Conduct Guidelines and Code of Ethics
            question-and-answer
    Corporate Governance Guidelines
   121




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Significant
    Differences between Siemens Corporate Governance and NYSE
    Corporate Governance Standards
        Two-Tier Board 
  Independence 
  Committees 
   122




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Shareholder Approval of Equity Compensation Plans; Stock
    Repurchases  and/or
  Declaration
    of Conformity with the Code
      Objects
    and Purposes
    
    to manufacture, distribute and supply industrial products in the
    fields of electrical engineering and electronics, mechanical
    engineering and precision mechanics as well as related sectors
    of engineering, including research and development in these
    fields;
    to develop, plan, distribute, supply, assemble and commission
    trade-specific and customer-specific systems, solutions and
    facilities in the fields of electrical engineering and
    electronics, mechanical engineering and precision mechanics as
    well as related sectors of engineering; and
    to render industrial and other business-related services.    Directors
   123




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Rights,
    Preferences and Restrictions Attaching To Our Shares
  Voting
    Rights
          
    amendments of our Articles of Association (except amendments
    that would impose an additional duty upon our shareholders or
    change certain rights and obligations attaching to our shares,
    which in addition require the approval of all shareholders
    concerned);
    capital increases and decreases;
    exclusion of preemptive rights in connection with a capital
    increase;
    creation of authorized capital or conditional capital or the
    issue of convertible bonds and bonds with warrants attached;
    dissolution of our Company; 124




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
    merger or consolidation of our Company with another stock
    corporation or certain other corporate transformations;
    transfer of all or virtually all of our assets; and
    approval of any direct control, profit and loss pooling or
    similar intercompany agreements.      Dividend
    Rights
      Liquidation
    Rights
    Preemptive
    Rights
   125




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
    to the extent that we have an obligation to grant new shares to
    holders of warrants or convertible bonds that we or any of our
    subsidiaries have issued;
    if the newly issued shares represent 10% or less of our existing
    share capital at the time we register the authorized capital or
    issue the new shares and the issue price of the new shares is
    not substantially less than the stock exchange price as defined
    under German law; or
    to the extent necessary to avoid fractional amounts that may
    arise in the case of share issuance upon the exercise of
    preemptive rights.    
    if the issue price of the bond is not significantly lower than
    its fair market value determined in accordance with generally
    accepted actuarial methods;
    if this is necessary with regard to small residual amounts that
    result from the exchange ratio; or
    to the extent holders of such rights are entitled, upon their
    exercise, to subscribe for our common shares in order to avoid
    dilution of the economic value of such rights.  Restrictions
    on voting rights or transfer of shares
       126




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Disclosure
    Requirement
  Wertpapierhandelsgesetz Bundesanstalt
    für Finanzdienstleistungsaufsicht Risikobegrenzungsgesetz
  Risikobegrenzungsgesetz
    Risikobegrenzungsgesetz
  Wertpapiererwerbs- und
    Übernahmegesetz
   127




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Repurchase
    of Our Own Shares
          Jurisdiction
   128




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Material
    Contracts
      Exchange
    Controls
      Taxation
  German
    Taxation
   129




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Taxation
    of the Company in Germany
      Unternehmensteuerreform 2008
  Imposition
    of Withholding Tax
    http://www.bzst.bund.de/).
    Refund
    Procedure for U.S. Shareholders
   130




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20007-1998.
    Capital
    Gains
        Inheritance
    and Gift Tax
    (i)
    the decedent or donor, or the heir, donee or other transferee
    has his residence or habitual abode (gewöhnlicher
    Aufenthalt) in Germany at the time of the transfer;(ii)
    the shares or ADSs are part of the business property of a
    permanent establishment in Germany;(iii)
    the decedent or donor, or the heir, donee or other transferee is
    a citizen of Germany, is not a resident in Germany, but has not
    been continuously outside of Germany for a period of more than
    five years; or(iv)
    the shares or ADSs subject to such transfer form part of a
    portfolio that represents 10% or more of the registered share
    capital of the company and has been held, directly or
    indirectly, by the decedent or donor, respectively, actually or
    constructively together with related parties.  Bundesverfassungsgericht
  U.S.-German
  Other
    Taxes
   131




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U.S.
    Federal income Taxation
    
    tax-exempt entities;
    life insurance companies;
    dealers in securities;
    traders in securities that elect a mark-to-market method of
    accounting for securities holdings;
    investors liable for alternative minimum tax;
    partnerships, or other entities classified as partnerships, for
    U.S. federal income tax purposes;
    investors that actually or constructively own 10% or more of our
    voting stock;
    investors that hold shares or ADSs as part of a straddle or a
    hedging or conversion transaction; or
    investors whose functional currency is not the U.S. dollar.          Taxation
    of Dividends
     132




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Taxation
    of Sales or Other Taxable Dispositions
    Information
    Reporting and Backup Withholding
  Form W-9 non-U.S. status U.S.-related
    Documents
    on Display
  1-800-SEC-0330.
 133




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ITEM 11:
    QUANTITATIVE
    AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK    ITEM 12:
    DESCRIPTION
    OF SECURITIES OTHER THAN EQUITY SECURITIES   134




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PART II
  ITEM 13:
    DEFAULTS,
    DIVIDEND ARREARAGES AND DELINQUENCIES    ITEM 14:
    MATERIAL
    MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
    PROCEEDS    ITEM 15:
    CONTROLS
    AND PROCEDURES  Overview
  Form 20-F
      Disclosure
    Controls and Procedures
   135




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Managements
    Annual Report on Internal Control Over Financial
    Reporting
    
    pertain to the maintenance of records that in reasonable detail,
    accurately and fairly reflect the transactions and dispositions
    of the assets of the Company;
    provide reasonable assurance that transactions are recorded as
    necessary to permit preparation of financial statements in
    accordance with generally accepted accounting principles, and
    that receipts and expenditures of the Company are being made
    only in accordance with authorizations of management and
    directors of the Company; and
    provide reasonable assurance regarding prevention or timely
    detection of unauthorized acquisition, use or disposition of the
    Companys assets that could have a material effect on the
    financial statements.          Remediation
    Activities
  Form 20-F
    
    Tone at the top: management commitment to compliance and
    integrity
    Organizational reform, including reorganization of central
    control functions (compliance, legal and audit)
    Anti-corruption compliance program
    Anti-corruption controls over third party intermediaries 136




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
    Corruption risk assessment in project acquisition
    Control over use of funds and centralization of bank accounts
    and payment transactions  Tone at
    the top: Management commitment to compliance and
    integrity
  
    The Companys management is committed to high ethical
    standards, transparency, responsibility, financial reporting
    integrity and no tolerance for illegal behavior. This commitment
    has been, and will continue to be, actively communicated to and
    reinforced with every Siemens employee. The CEO, CFO and members
    of senior management have repeatedly reinforced compliance
    messages and actions throughout the organization, including
    through, among others, internal and external compliance-related
    presentations; training sessions; business reviews; compliance
    meetings with senior executives; and periodic
    e-mails and
    letters to Siemens employees.
    The Company has initiated a procedure to assert claims for
    damages against ten former members of the former Central
    Executive Committee of the Managing Board, including two former
    CEOs. The claims are based on breaches of organizational and
    supervisory duties in view of the accusations of illegal
    business practices and the resulting financial burdens to the
    Company. In addition, two former chairmen of the Supervisory
    Board, one of whom is also a former CEO and referred to above,
    have been invited to respond to allegations that they had
    breached their supervisory duties, before the Managing Board
    considers further steps and the possible enforcement of damage
    claims against them.
    The Company has incorporated compliance targets into its
    management compensation system. Effective fiscal 2008, a portion
    of the annual bonus of the members of the Managing Board and
    senior managers (over 5,000 individuals) depends on meeting
    specified compliance targets.
    In October 2007, the Company established a global amnesty
    program for employees, other than management personnel above
    certain levels, who voluntarily provided information regarding
    possible violations of anti-public-corruption laws. After the
    amnesty program expired in February 2008, the Company has
    continued to offer leniency, in individual cases, to select
    individuals who provided significant information regarding
    possible violations of anti-public-corruption laws or financial
    reporting irregularities.
    The Company has taken, and will continue to take, appropriate
    disciplinary actions with respect to employees in cases of
    misconduct, including terminations, suspensions, formal and
    informal warnings and imposition of financial penalties in the
    form of compensation adjustments. The Company established a
    Corporate Disciplinary Committee, supplementing existing
    disciplinary processes, to determine the appropriate
    consequences in cases of alleged misconduct involving employees
    above a certain level.
    In addition, the Company has been pursuing a number of
    collective action initiatives, partnering with industry peers,
    and with stakeholders, including non-governmental organizations
    and international government leaders, to encourage collective
    action in the fight against official corruption.  Organizational
    reform, including reorganization of central control functions
    (compliance, legal and audit)
  
    The Company has made far-reaching changes to the leadership of
    the organization. In addition to the appointment of a new
    Chairman of the Supervisory Board and a new CEO in fiscal 2007,
    the composition of the entire Managing Board has been
    significantly reshaped and nearly all members (including the
    CEO) newly appointed.
    Effective October 2007, the Company established a new Managing
    Board position for legal and compliance matters. To fill this
    position, the Company hired and appointed a new member of
    Siemens Managing Board, who is also the Companys
    General Counsel, with overall responsibility for legal,
    regulatory and compliance issues.
    As of January 2008, the Company reorganized its operations into
    three sectorsIndustry, Energy and Healthcareand
    within them, into 15 divisions. The new organizational structure
    introduces a more 137




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streamlined reporting process with three sector CEOs, each a
    Managing Board member, facilitating greater accountability and
    transparency.  
    As part of the new organizational structure, CFOs of all Siemens
    entities report, directly or indirectly, to the CFO of Siemens
    AG. In addition, all appointments of CFOs and accounting and
    controlling heads of sectors, divisions, regional clusters and
    major regional companies must be approved by the Corporate
    Finance and Controlling department, headed by the CFO of Siemens
    AG.
    The legal function has been reorganized to mirror the new
    organizational structure of the Company and has also been
    centralized worldwide, with the General Counsels of all Siemens
    entities reporting, directly or indirectly, to the
    Companys General Counsel.
    The Company has reorganized and strengthened its Compliance
    department. Effective September 2007, the Company appointed a
    new Chief Compliance Officer who reports to the General Counsel,
    and also reports directly to the CEO. Effective January 2008,
    the sector, divisional and regional compliance officers report
    directly to the Chief Compliance Officer. A consistent and
    rigorous set of mission statements and required
    skill sets have been established for compliance officers. The
    compliance officer position has generally become a full-time
    responsibility. The Company has significantly increased the
    staff of the Compliance department in entities throughout the
    organization and at the corporate office from approximately
    170 full-time equivalent compliance officers at the end of
    fiscal 2007 to approximately 520 at the end of fiscal 2008. The
    Company has also implemented extensive training programs for
    Compliance personnel.
    The Company has reorganized and integrated its audit department
    and has placed special focus on ensuring adequate outside audit
    experience as well as professional qualification on all levels.
    As of October 1, 2008, all Company audit functions have
    been merged into one Corporate Finance Audit with regional hubs,
    focusing on six areasfinancial audit, operational audit,
    compliance audit, forensic audit, IT audit and transaction
    supportwith methodology, support and quality assurance for
    each area being provided by a central professional practice
    function. Effective October 2007, the Company appointed a Chief
    Audit Officer who heads Corporate Finance Audit and reports to
    the Companys CFO and has an independent reporting line to
    the Audit Committee and its Chairman.  Anti-corruption
    compliance program
  
    The Company has developed an anti-corruption implementation
    toolkit reflecting Siemens global anti-corruption
    standards. As of the end of fiscal 2008, the toolkit has been
    implemented across Siemens entities with elevated corruption
    risk as well as all Siemens entities which are deemed
    financially significant, with rollout within the remaining
    entities scheduled for completion in fiscal 2009.    
    The Company has enhanced its anti-corruption policies and
    procedures by developing, adopting and implementing, among
    others: a new global anti-public-corruption policy; enhanced
    restrictions on the use of business partners; enhanced guidance
    on anti-corruption considerations in M&A transactions,
    joint ventures and minority investments; enhanced gift and
    hospitality policies; and a new anti-corruption handbook for
    employees in five languages.
    During fiscal 2007 and 2008, the Company has completed in-person
    anti-corruption and compliance training programs for
    approximately 1,400 senior managers worldwide. The Company also
    conducted dedicated in-person anti-corruption and compliance
    training programs for employees who interact with 138




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government officials. More than 50,000 employees have
    attended these in-person training programs. The Company also
    launched web-based anti-corruption and compliance training
    programs for employees in other positions, including all
    customer-facing functions, which have been completed by over
    122,000 employees.  
    In September 2007, the Company implemented the Ask
    us Helpdesk, through which employees have the opportunity
    to submit questions on day-to-day business compliance topics.
    Since its inception, approximately 4,000 questions have been
    submitted through the Ask us Helpdesk.
    Effective August 2007, the Company implemented the Tell
    us Helpdesk, which provides independent worldwide, 24/7
    facilities, either online or by telephone, and in any of up to
    150 languages to receive and track compliance-related
    complaints from Siemens employees as well as from non-Siemens
    affiliated individuals. Approximately 400 reports were submitted
    to the Tell us Helpdesk during fiscal 2008. The
    Tell us Helpdesk supplements an external attorney,
    who has been acting, since December 2006, as an independent
    ombudsman providing an additional and protected communication
    channel for Siemens employees and third parties to report
    violations of the criminal law or the business conduct
    guidelines.
    The Company has implemented and is operating a new process to
    identify and record in a consolidated manner all significant
    outstanding compliance cases with possible significant financial
    statement impact, tracking the progress of these cases, and
    taking other appropriate action.
    The Company has continued to enhance the enterprise risk
    management process so that compliance, as well as strategic,
    operational and financial risks, are taken into consideration.
    The Company has established a process for a periodic compliance
    program risk assessment, supported by the Corporate Compliance
    Office, to feed into the Enterprise Risk Management process. The
    results of the enterprise risk assessment process are presented
    periodically to the Managing Board and the Audit Committee.  Anti-corruption
    controls over third-party intermediaries
  
    In February 2007, the Company adopted a moratorium on entering
    into new sales-related business consulting agreements (BCAs) or
    making payments under existing BCAs without the approval of the
    Companys Chief Compliance Officer. In fiscal 2008, the
    Company developed and adopted a risk-based policy and process
    for the retention of sales-related business partners.
    In addition to the review of active BCAs completed by the
    Company, an outside law firm engaged by the Company has
    substantially completed a due diligence review of currently
    active sales agents.
    During fiscal 2008, in connection with the issuance of the new
    business partner policy, the Company also modified its controls
    and introduced a business partner due diligence IT tool to
    capture and assess relevant business partners used by the
    Company. The new business partner due diligence process relies
    on a risk-based approach to classify business partners and
    determine the level of due diligence, with contract terms and
    approvals tailored to these risk levels.
    Controls around data quality and completeness of business
    partners included in the business partner tool have been
    implemented at the corporate level as well as within the
    sectors, divisions and regional entities.  Corruption
    risk assessment in project acquisition
  
    The Company has instituted a corruption risk analysis and a
    compliance-related approval process in the acquisition phase as
    well as at key milestones of all projects in excess of
    100,000 and any project in which an intermediary is
    involved. These controls have been integrated into the
    Companys project management program that provides global
    standards for the management of Siemens project business.
    Approximately 35,000 employees had been trained in the use
    of the Limits of Authority tool by the end of fiscal
    2008.
    In addition, controls around data quality and completeness of
    anti-corruption aspects of project bids included in the
    Limits of Authority tool have been implemented at
    the corporate level as well as within the sectors, divisions and
    regional entities. 139




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Control
    over funds and centralization of bank accounts and payment
    transactions
  
    During fiscal 2008, the Company established a more comprehensive
    and structured internal control framework to strengthen its
    control over use of funds. In addition to the local entity
    controls implemented as part of the anti-corruption
    implementation toolkit, the Company established additional
    policies, processes, tools, monitoring and remediation controls,
    and management reporting that relate to bank accounts and
    payments.
    In April 2007, the Company adopted, and in August 2008 further
    strengthened, a new policy on bank accounts and payments
    requiring that all new and existing bank accounts must be
    centrally authorized and registered and that account statements
    for all accounts must be centrally submitted and loaded into
    Siemens central in-house banking platform, on a regular
    basis. The policy also prohibits bank accounts used for
    Siemens business activities to be opened or maintained in
    the name of a third party. CFOs of all Siemens local entities
    provide quarterly certifications regarding compliance with the
    policy as well as other policies regarding bank accounts.
    The policy also requires that all outgoing payments, where
    technically and legally feasible, be channeled centrally via
    Siemens in-house banking platform. The Company has made
    significant progress in extending this requirement to include
    not only cross-border and foreign currency payments but also
    local payments in domestic currencies. All outgoing payments,
    including local payments that are not channeled via this central
    banking platform, must be submitted through the enterprise
    resource planning system and sent electronically to an approved
    local bank. Additional restrictions were established for
    cash-on-hand,
    cash payments, cash advances to employees and the use of checks.
    The Company has established a more rigorous process for the
    requesting, granting, and central retention of all exceptions to
    the policy. Only Corporate Treasury may grant exceptions to the
    requirements for bank accounts and payments that are established
    in the policy. Additional corporate-level controls were
    implemented to monitor ongoing adherence to key corporate
    requirements regarding bank accounts and payments. The Company
    also conducted central, risk-based investigation and remediation
    of potential deviations from corporate requirements.
    The Company has implemented a new policy with regard to
    signature authorizations and the segregation of duties. The
    Company has also rolled out a standardized set of segregation of
    duties rules to ensure that relevant financial obligations are
    authorized in conformity with corporate principles and an
    adequate signature authorization concept. In addition, signature
    authorization guidelines were implemented which govern criteria
    regarding individuals who may be granted authorizations for
    payments as well as processes and requirements for the use by
    authorized signatories of their authorization.
    The Company has also taken steps to reduce the number of
    entities it maintains and to strengthen controls around its
    inter-company consolidation process.    Changes
    in Internal Control over Financial Reporting
   140




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ITEM 16A:
    AUDIT
    COMMITTEE FINANCIAL EXPERT  Rule 10A-3
  ITEM 16B:
    CODE
    OF ETHICS  www.siemens.com/corporate_governance.
  ITEM 16C:
    PRINCIPAL
    ACCOUNTANT FEES AND SERVICES    Year endedSeptember 30,Type of Fees

2008


2007( in millions)Audit Fees


50.7



55.3Audit-Related Fees


14.6



18.4Tax Fees


2.6



4.8All Other Fees


0.5



8.5Total


68.4



87.0   agreed-upon
 141




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Audit
    Committee Pre-Approval Policies
        Audit
    Services
  
    Annual audit of Siemens Consolidated Financial Statements
    and of internal control over financial reporting
    Quarterly review of Siemens interim financial statements
    Statutory audits of financial statements of Siemens AG and of
    its subsidiaries under the rules of their respective countries
    Opening balance sheet audits in connection with acquisitions
    including audits with regard to the allocation of purchase prices  Audit-Related
    Services
  
    Due diligence relating to actual or contemplated acquisitions
    and carve-outs, including consultation in accounting matters
    Post-closing audits
    Carve-out audits and attestation services in the context of
    carve-outs
    Accounting advice relating to actual or contemplated
    transactions or events
    Advice on the introduction and review of new or revised
    accounting guidelines and requirements
    Training regarding accounting-related topics
    Advice on the transition to accounting according to IFRS
    Advice in the field of financial risk management 142




---



##### Table of Contents




    Comfort letters
    Employee benefit plan audits
    SAS 70 reports
    IT system audits that are not part of the annual audit
    Attestation services subject to regulatory requirements,
    including regulatory advice
    Attestation and audits in connection with the European Community
    Directive on Waste Electrical and Electronic Equipment
    Audits in connection with liquidation and insolvency issues
    Attestation of compliance with provisions or calculations
    required by agreements
    Agreed-upon
    procedures engagements in accordance with applicable standards
    Voluntary audits and reviews of stand-alone financial statements
    of subsidiaries  Tax
    Services
  
    Preparation of tax returns
    Assistance with assessing compliance with certain tax regulations
    Support in tax audits and other inquiries by fiscal authorities
    Tax advice associated with transfer prices
    Tax advice relating to indirect tax and custom duties
    Tax advice and consultation relating to claiming and utilization
    of investment grants, premiums, subsidies, tax credits etc.
    Payroll tax services
    Training regarding tax-related issues  All
    Other Services
  
    Forensic services
    Examinations/audits regarding compliance with industry standards    ITEM 16D:
    EXEMPTIONS
    FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES   143




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##### Table of Contents



ITEM 16E:
    PURCHASES
    OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
    PURCHASERS    (c) Total number of


(d) Maximum numbershares purchased as


of shares that may yet(b) Average price


part of publicly


be purchased under(a) Total number of


paid per share


announced plans or


the plans or programsPeriod

shares purchased


(in )


programs(1)


at
    month-end(2)October 10/1/07-10/31/07














89,163,221November 11/1/07-11/30/07


1,886,892



99.79



1,886,892



87,276,329December 12/1/07-12/31/07


1,448,977



104.91



1,448,977



85,827,352January 1/1/08-1/31/08


1,452,647



85.39



1,452,647



84,374,705February 2/1/08-2/28/08


10,049,547



88.10



10,049,547



74,325,158March 3/1/08-3/31/08


8,477,100



76.55



8,477,100



82,943,242April 4/1/08-4/30/08


4,968,943



70.69



4,968,943



77,974,299May 5/1/08-5/31/08














77,974,299June 6/1/08-6/30/08


12,503,495



73.18



12,503,495



65,470,804July 7/1/08-7/31/08


15,413,169



70.42



15,413,169



50,057,635August 8/1/08-8/31/08














50,057,635September 9/1/08-9/30/08


651



105.12



651



50,056,984Total


56,201,421



77.41



56,201,421     (1)
    On November 7, 2007, Siemens announced a Share Buyback
    Program adopted by the Management Board and approved by the
    Supervisory Board. The Share Buyback Program provides for
    repurchase of up to 10 billion of shares through the
    end of fiscal 2010. Shares repurchased under the Share Buyback
    Program are purchased solely for the purpose of cancellation and
    reduction of capital stock or for the purpose of fulfilling
    obligations arising out of stock compensation programs.(2)
    Shares repurchased under the Share Buyback Program through
    February 29, 2008 were purchased pursuant to a resolution
    of the Annual Shareholders Meeting of January 25,
    2007 authorizing the repurchase of up to 89,163,572 Siemens
    shares. Shares repurchased under the Share Buyback Program
    between March 1, 2008 and September 30, 2008 were
    purchased pursuant to a resolution of the Annual
    Shareholders Meeting of January 24, 2008 authorizing
    the repurchase of up to 91,420,342 Siemens shares, which took
    effect on March 1, 2008, superseding the shareholders
    resolution of January 25, 2007. This authorization was
    granted until July 23, 2009. The maximum number of
    shares that may yet be purchased under the plans or programs at
    month-end as of September 30, 2008, as presented in
    the table above, represents the 91,420,342 Siemens shares
    authorized for repurchase on January 24, 2008 less the
    41,363,358 Siemens shares repurchased between March 1, 2008
    and September 30, 2008. At current share prices, repurchase
    of a total of 10 billion of shares by fiscal year end
    2010 pursuant to the Share Buyback Program would require that
    the shareholders grant additional authority to repurchase shares.       144




---



##### 



PART III
  ITEM 17:  FINANCIAL
    STATEMENTS  Siemens
  Index to
    Consolidated Financial Statements
   
 PageReport of Independent Registered Public
    Accounting Firm


F-2Consolidated Financial Statements


F-3Consolidated Statements of Income for the fiscal
    years ended September 30, 2008, September 30, 2007
    and September 30, 2006


F-3Consolidated Statements of Income and Expense
    Recognized in Equity for the fiscal years ended
    September 30, 2008, September 30, 2007 and
    September 30, 2006


F-3Consolidated Balance Sheets as of
    September 30, 2008 and September 30, 2007


F-4Consolidated Statements of Cash Flow for the
    fiscal years ended September 30, 2008,
    September 30,
    2007 and September 30, 2006


F-5Notes to Consolidated Financial Statements


F-6   F-1




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##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  The Supervisory Board of Siemens AG:
  Internal ControlIntegrated Framework
          Internal ControlIntegrated Framework
  KPMG AG
 Wirtschaftsprüfungsgesellschaft
  (previously
 KPMG Deutsche Treuhand-Gesellschaft
 Aktiengesellschaft
 Wirtschaftsprüfungsgesellschaft)
  Munich, Germany
 November 21, 2008
 F-2




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##### Table of Contents



SIEMENSCONSOLIDATED STATEMENTS OF INCOME
    For the fiscal years ended September 30, 2008, 2007 and
    2006
    (in millions of , per share amounts in ) Note

2008


2007


2006Revenue






77,327



72,448



66,487Cost of goods sold and services rendered






(56,284
)


(51,572
)


(49,108
)Gross profit






21,043



20,876



17,379Research and development expenses






(3,784
)


(3,399
)


(3,091
)Marketing, selling and general administrative expenses






(13,586
)


(12,103
)


(11,897
)Other operating income


6



1,047



680



629Other operating expense


7



(2,228
)


(1,053
)


(260
)Income from investments accounted for using the equity method,
    net


8



260



108



404Financial income (expense), net


9



122



(8
)


254Income from continuing operations before income taxes






2,874



5,101



3,418Income taxes


10



(1,015
)


(1,192
)


(776
)Income from continuing operations






1,859



3,909



2,642Income from discontinued operations, net of income taxes






4,027



129



703Net income






5,886



4,038



3,345Attributable to:Minority interest






161



232



210Shareholders of Siemens AG






5,725



3,806



3,135Basic earnings per share


36Income from continuing operations






1.91



4.13



2.78Income from discontinued operations






4.50



0.11



0.74Net income






6.41



4.24



3.52Diluted earnings per share


36Income from continuing operations






1.90



3.99



2.77Income from discontinued operations






4.49



0.11



0.74Net income






6.39



4.10



3.51  CONSOLIDATED
    STATEMENTS OF INCOME AND EXPENSE RECOGNIZED IN EQUITY
    For the fiscal years ended September 30, 2008, 2007 and
    2006
    (in millions of ) 2008


2007


2006Net income






5,886



4,038



3,345Currency translation differences






(313
)


(536
)


(349
)Available-for-sale financial assets






(122
)


30



(354
)Derivative financial instruments






(237
)


100



58Actuarial gains and losses on pension plans and similar
    commitments






(1,719
)


1,237



245Revaluation effect related to step acquisitions










3



4Total income and expense recognized directly in equity, net of
    tax(1)(2)






(2,391
)


834



(396
)Total income and expense recognized in equity






3,495



4,872



2,949Attributable to:Minority interest






159



265



181Shareholders of Siemens AG






3,336



4,607



2,768    (1)
    Includes income and expense resulting from investments accounted
    for using the equity method of (38), (26) and
    (50) in 2008, 2007 and 2006, respectively.(2)
    Includes minority interest relating to currency translation
    differences of 1, 30 and (29) in 2008, 2007
    and 2006, respectively and relating to actuarial gains and
    losses on pension plans and similar commitments of (3),
    3 and  in 2008, 2007 and 2006,
    respectively.  The accompanying Notes are an
    integral part of these Consolidated Financial Statements.
 F-3




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##### Table of Contents



SIEMENS
    CONSOLIDATED BALANCE SHEETS
    As of September 30, 2008 and 2007
    (in millions of ) Note

9/30/08


9/30/07ASSETSCurrent assetsCash and cash equivalents






6,893



4,005Available-for-sale financial assets


11



152



193Trade and other receivables


12



15,785



14,620Other current financial assets


13



3,116



2,932Inventories


14



14,509



12,930Income tax receivables






610



398Other current assets


15



1,368



1,322Assets classified as held for disposal






809



11,532Total current assets






43,242



47,932Goodwill


16



16,004



12,501Other intangible assets


17



5,413



4,619Property, plant and equipment


18



11,258



10,555Investments accounted for using the equity method


19



7,017



7,016Other financial assets


20



7,785



5,561Deferred tax assets


10



3,009



2,594Other assets






735



777Total assets






94,463



91,555LIABILITIES AND EQUITYCurrent liabilitiesShort-term debt and current maturities of long-term debt


23



1,819



5,637Trade payables






8,860



8,382Other current financial liabilities


21



2,427



2,553Current provisions


25



5,165



3,581Income tax payables






1,970



2,141Other current liabilities


22



21,644



17,058Liabilities associated with assets classified as held for
    disposal






566



4,542Total current liabilities






42,451



43,894Long-term debt


23



14,260



9,860Pension plans and similar commitments


24



4,361



2,780Deferred tax liabilities


10



726



580Provisions


25



2,533



2,103Other financial liabilities






376



411Other liabilities


26



2,376



2,300Total liabilities






67,083



61,928Equity


27Common stock, no par
    value(1)






2,743



2,743Additional paid-in capital






5,997



6,080Retained earnings






22,989



20,453Other components of equity






(953
)


(280
)Treasury shares, at
    cost(2)






(4,002
)


Total equity attributable to shareholders of Siemens AG






26,774



28,996Minority interest






606



631Total equity






27,380



29,627Total liabilities and equity






94,463



91,555    (1)
    Authorized: 1,137,913,421 and 1,137,913,421 shares,
    respectively.
    Issued: 914,203,421 and 914,203,421 shares, respectively.(2)
    52,645,665 and 383 shares, respectively.  The accompanying Notes are an
    integral part of these Consolidated Financial Statements.
 F-4




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##### Table of Contents



SIEMENSCONSOLIDATED STATEMENTS OF CASH FLOW
    For the fiscal years ended September 30, 2008, 2007 and
    2006
    (in millions of )
 2008


2007


2006Cash flows from operating activitiesNet income


5,886



4,038



3,345Adjustments to reconcile net income to cash providedAmortization, depreciation and impairments


3,213



3,751



3,118Income taxes


831



2,193



775Interest (income) expense, net


(75
)


193



(142
)(Gains) on sales and disposals of businesses, intangibles and
    property, plant and equipment,
    net


(5,092
)


(2,051
)


(113
)(Gains) on sales of investments,
    net(1)


(35
)


(95
)


(104
)(Gains) losses on sales and impairments of current
    available-for-sale financial assets, net


(5
)


32



(466
)(Income) from
    investments(1)


(328
)


(223
)


(569
)Other non-cash (income) expenses


383



106



372Change in current assets and liabilities(Increase) decrease in inventories


(1,631
)


(986
)


(2,313
)(Increase) decrease in trade and other receivables


(1,088
)


(1,183
)


(1,027
)(Increase) decrease in other current assets


167



(486
)


572Increase (decrease) in trade payables


719



1,158



279Increase (decrease) in current provisions


1,414



(258
)


(34
)Increase (decrease) in other current liabilities


4,417



2,858



2,053Change in other assets and liabilities


200



(883
)


41Income taxes paid


(1,564
)


(1,930
)


(1,191
)Dividends received


337



337



378Interest received


875



757



685Net cash provided by (used in) operating
    activitiescontinuing and discontinued
    operations


8,624



7,328



5,659Net cash provided by (used in) operating
    activitiescontinuing operations


9,281



9,822



5,003Cash flows from investing activitiesAdditions to intangible assets and property, plant and equipment


(3,721
)


(3,751
)


(4,052
)Acquisitions, net of cash acquired


(5,407
)


(7,370
)


(2,055
)Purchases of
    investments(1)


(151
)


(261
)


(389
)Purchases of current available-for-sale financial assets


(16
)


(148
)


(1,489
)(Increase) decrease in receivables from financing activities


(2,445
)


(907
)


(469
)Proceeds from sales of investments, intangibles and property,
    plant and
    equipment(1)


803



1,041



914Proceeds from disposals of businesses


10,481



(380
)


(260
)Proceeds from sales of current available-for-sale financial
    assets


49



419



3,104Net cash provided by (used in) investing
    activitiescontinuing and discontinued
    operations


(407
)


(11,357
)


(4,696
)Net cash provided by (used in) investing
    activitiescontinuing operations


(9,989
)


(10,068
)


(4,315
)Cash flows from financing activitiesProceeds from issuance of common stock






903



Purchase of common stock


(4,350
)


(101
)


(421
)Proceeds from re-issuance of treasury stock


248



66



313Proceeds from issuance of long-term debt


5,728



766



6,701Repayment of long-term debt (including current maturities of
    long-term debt)


(691
)


(4,595
)


(1,710
)Change in short-term debt


(4,635
)


4,386



(1,762
)Interest paid


(829
)


(1,169
)


(596
)Dividends paid


(1,462
)


(1,292
)


(1,201
)Dividends paid to minority shareholders


(138
)


(151
)


(118
)Net cash provided by (used in) financing
    activitiescontinuing and discontinued
    operations


(6,129
)


(1,187
)


1,206Net cash provided by (used in) financing
    activitiescontinuing operations


3,730



(5,792
)


1,540Effect of exchange rates on cash and cash equivalents


(99
)


(58
)


(76
)Net increase (decrease) in cash and cash equivalents


1,989



(5,274
)


2,093Cash and cash equivalents at beginning of period


4,940



10,214



8,121Cash and cash equivalents at end of period


6,929



4,940



10,214Less: Cash and cash equivalents of assets classified as held for
    disposal and discontinued
    operations at end of period


36



935



Cash and cash equivalents at end of period (Consolidated balance
    sheets)


6,893



4,005



10,214    (1)
    Investments include equity instruments either classified as
    non-current available-for-sale financial assets or accounted for
    using the equity method.  The accompanying Notes are an
    integral part of these Consolidated Financial Statements.
 F-5




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##### Table of Contents



SIEMENS 
    Notes to Consolidated Financial Statements
    CONSOLIDATED CHANGES IN EQUITY
    For the fiscal years ended September 30, 2008, 2007 and
    2006
    (in millions of ) AdditionalCommon


paid-in


Retainedstock


capital


earningsBalance at October 1, 2005


2,673



5,167



14,519Income and expense recognized in equity










3,384Dividends










(1,201
)Issuance of common stock and share-based payment






44



Purchase of common stock










Re-issuance of treasury stock






(36
)


Other changes in equity






487



Balance at September 30, 2006


2,673



5,662



16,702Balance at October 1, 2006


2,673



5,662



16,702Income and expense recognized in equity










5,043Dividends










(1,292
)Issuance of common stock and share-based payment


70



1,593



Purchase of common stock










Re-issuance of treasury stock






(7
)


Other changes in equity






(1,168
)


Balance at September 30, 2007


2,743



6,080



20,453Balance at October 1, 2007


2,743



6,080



20,453Income and expense recognized in equity










4,009Dividends










(1,462
)Issuance of common stock and share-based payment






(1
)


Purchase of common stock










Re-issuance of treasury stock






(67
)


Other changes in equity






(15
)


(11
)Balance at September 30, 2008


2,743



5,997



22,989  F-6




---



##### Table of Contents



Other components of equityAvailable-











Total equityCurrency


for-sale


Derivative





Treasury


attributabletranslation


financial


financial





shares


to shareholders


Minority


Totaldifferences


assets


instruments


Total


at cost


of Siemens AG


interest


equity411



450



(89
)


772



(1
)


23,130



661



23,791(320
)


(354
)


58



(616
)






2,768



181



2,949



















(1,201
)


(144
)


(1,345
)



















44







44















(421
)


(421
)






(421
)















422



386







386



















487



4



49191



96



(31
)


156







25,193



702



25,89591



96



(31
)


156







25,193



702



25,895(566
)


30



100



(436
)






4,607



265



4,872



















(1,292
)


(146
)


(1,438
)



















1,663







1,663















(101
)


(101
)






(101
)















101



94







94



















(1,168
)


(190
)


(1,358
)(475
)


126



69



(280
)






28,996



631



29,627(475
)


126



69



(280
)






28,996



631



29,627(314
)


(122
)


(237
)


(673
)






3,336



159



3,495



















(1,462
)


(127
)


(1,589
)



















(1
)






(1
)















(4,350
)


(4,350
)






(4,350
)















348



281







281



















(26
)


(57
)


(83
)(789
)


4



(168
)


(953
)


(4,002
)


26,774



606



27,380  F-7




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##### Table of Contents



SIEMENS 
    Notes to Consolidated Financial Statements
    SEGMENT INFORMATION (continuing operations)
    As of and for the fiscal years ended September 30, 2008,
    2007 and 2006
    (in millions of )
  New orders (unaudited)


External revenue


Intersegment revenue2008


2007


2006


2008


2007


2006


2008


2007


2006SectorsIndustry


42,795



39,095



36,821



36,908



34,976



32,607



1,177



1,083



1,051Energy


33,428



28,543



21,001



22,191



19,875



16,565



386



434



382Healthcare


11,779



10,271



9,334



11,116



9,798



8,164



54



53



63Total Sectors


88,002



77,909



67,156



70,215



64,649



57,336



1,617



1,570



1,496Equity Investments


































Cross-Sector BusinessesSiemens IT Solutions and Services


5,272



5,156



5,574



3,845



3,988



4,466



1,480



1,372



1,227Siemens Financial Services (SFS)


756



721



645



675



653



581



81



67



64Reconciliation to consolidated financial statementsOther Operations


2,478



2,830



4,068



2,072



2,516



3,427



398



368



517Siemens Real Estate (SRE)


1,665



1,686



1,705



388



476



580



1,277



1,210



1,125Corporate items and pensions


167



175



124



132



166



97



16



14



2Eliminations, Corporate Treasury and other reconciling items


(4,845
)


(4,561
)


(4,328
)














(4,869
)


(4,601
)


(4,431
)Siemens


93,495



83,916



74,944



77,327



72,448



66,487











    (1)
    Profitof the Sectorsas well as of Equity
    Investments, Siemens IT Solutions and Servicesand
    Other Operationsis earnings before financing interest,
    certain pension costs and income taxes, whereas certain other
    items not considered performance indicative by Management may be
    excluded. Profitof SFSand SREis Income
    before income taxes.(2)
    Assetsof the Sectorsas well as of Equity
    Investments, Siemens IT Solutions and Servicesand
    Other Operationsis defined as Total assets less income
    tax assets, less non-interest bearing liabilities/provisions
    other than tax liabilities. Assetsof SFSand
    SREis Total assets.(3)
    Free cash flowrepresents net cash provided by (used in)
    operating activities less additions to intangible assets and
    property, plant and equipment. Free cash flowof the
    Sectors, Equity Investments, Siemens IT Solutions and
    Servicesand Other Operationsprimarily exclude
    income tax, financing interest and certain pension related
    payments and proceeds. Free cash flowof SFS, a
    financial services business, and of SREincludes related
    financing interest payments and proceeds; income tax payments
    and proceeds of SFSand SREare excluded.(4)
    Amortization, depreciation and impairmentscontains
    amortization and impairments of intangible assets other than
    goodwill and depreciation and impairments of property, plant and
    equipment. SiemensGoodwill impairment and
    impairment of non-current available-for-sale financial assets
    and investments accounted for under the equity method amount to
    108, 158 and 89 for the fiscal years ended
    September 30, 2008, 2007 and 2006, respectively.   F-8




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##### Table of Contents



Additions tointangible assets


Amortization,and property, plant


depreciation andTotal revenue


Profit(1)


Assets(2)


Free cash
    flow(3)


and equipment


impairments(4)2008


2007


2006


2008


2007


2006


9/30/08


9/30/07


9/30/06


2008


2007


2006


2008


2007


2006


2008


2007


200638,085



36,059



33,658



3,861



3,521



2,618



12,000



11,836



8,916



3,757



3,342



2,031



1,248



1,051



1,141



1,139



920



84422,577



20,309



16,947



1,434



1,818



1,084



1,670



3,367



3,697



2,940



2,513



758



681



426



480



345



341



33711,170



9,851



8,227



1,225



1,323



988



13,257



8,234



4,975



1,195



1,380



893



541



444



314



640



438



28471,832



66,219



58,832



6,520



6,662



4,690



26,927



23,437



17,588



7,892



7,235



3,682



2,470



1,921



1,935



2,124



1,699



1,465











95



(96
)


234



5,587



5,009



1,069



148



84



90























5,325



5,360



5,693



144



252



(731
)


241



253



18



156



18



(661
)


158



204



284



224



282



292756



720



645



286



329



306



11,328



8,912



10,543



(50
)


108



71



564



558



498



285



277



2412,470



2,884



3,944



(367
)


(232
)


(346
)


(1,545
)


(704
)


(513
)


(178
)


(293
)


(293
)


99



166



197



191



118



1211,665



1,686



1,705



356



228



115



3,489



3,091



3,221



(42
)


(35
)


(45
)


259



196



270



161



161



191148



180



99



(3,853
)


(1,684
)


(507
)


(6,401
)


(2,682
)


(4,692
)


(1,810
)


(1,795
)


(1,024
)


41



88



82



97



151



61(4,869
)


(4,601
)


(4,431
)


(307
)


(358
)


(343
)


54,837



54,239



60,294



(377
)


1,433







(49
)


(66
)


(83
)


(67
)


(63
)


(57
)77,327



72,448



66,487



2,874



5,101



3,418



94,463



91,555



87,528



5,739



6,755



1,820



3,542



3,067



3,183



3,015



2,625



2,314  F-9




---



##### Table of Contents



SIEMENS
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
 (in
    millions of , except where otherwise stated and per share
    amounts)
  1.
    Basis of
    presentation          Financial
    statement presentation
    2.
    Summary
    of significant accounting policies    Basis of consolidation
  Business combinations
  Associated companies
 F-10




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Foreign currency translation
    Year-endexchange rate


Annual average rate1  quoted


1  quotedinto currencies


into currenciesspecified below


specified belowSeptember 30,


Fiscal yearCurrency

ISO Code


2008


2007


2008


2007


2006U.S. Dollar


USD



1.430



1.418



1.507



1.333



1.230British Pound


GBP



0.790



0.697



0.763



0.676



0.685   Revenue recognition
   F-11




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Product-related expenses and losses from onerous
    contracts Cost of goods sold and
    services rendered
  Research and development costs
  Other intangible assets
  Earnings per share
  Goodwill
     F-12




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Other intangible assets
  Property, plant and equipment
  Factory and office buildings


20 to 50 yearsOther buildings


5 to 10 yearsTechnical machinery & equipment


5 to 10 yearsFurniture & office equipment


generally 5 yearsEquipment leased to others


generally 3 to 5 years
   Impairment of property, plant and equipment and other
    intangible assets with finite useful lives
    Discontinued operations
  Income taxes Income
    Taxes.
 F-13




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Inventories first-in,
  Provisions
  Restructuring charges
  Financial instruments
     F-14




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Cash and cash equivalents
  Available-for-sale financial
    assets Other components of equity
    Loans and receivables
  Financial liabilities
  Derivative financial instruments Other components of equity,
      Other components of equity
  Share-based payment First-time Adoption of International Financial Reporting
    Standards Share-based Payment,
 F-15




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Prior year information
  Recently
    adopted accounting pronouncements
  Financial Instruments: Disclosures
  IFRS 8, Operating
    Segments Segment Reporting
  Service Concession
    Arrangements
  Recent
    accounting pronouncements, not yet adopted
    Presentation of Financial Statements: A
    Revised Presentation (IAS 1 revised) Presentation of Financial Statements (revised in
    2003)
  Business Combinations Consolidated and Separate Financial Statements
   F-16




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
        ,
    Share-based Payment, Vesting Conditions and Cancellations
  3. Management
    estimates and judgments
    Revenue Recognition on Construction
    Contracts
 F-17




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Trade and other Receivables
  Impairment
  Employee Benefit Accounting
    Provisions
 F-18




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
      4. Acquisitions,
    dispositions and discontinued operations
  a) Acquisitions
             F-19




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    U.S.-based
          b) Dispositions
    and Discontinued Operations
  Siemens VDO Automotive (SV)discontinued operation
   F-20




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    September 30,2007Trade and other receivables


1,917Inventories


989Goodwill


1,543Property, plant and equipment


2,030Deferred tax assets


1,334Other assets*


1,291Assets classified as held for disposal


9,104Trade payables


1,402Current provisions


245Other current liabilities


596Pension plans and similar commitments


359Other liabilities


445Liabilities associated with assets classified as held for
    disposal


3,047    *
    As of September 30, 2007, this caption includes 185
    of cash and cash equivalents.    Year ended September 30,2008


2007


2006Revenue


1,842



10,324



10,017Costs and expenses, including gain on disposal


3,553



(9,744
)


(9,449
)Income from discontinued operations before income taxes


5,395



580



568Income taxes


65



(1,130
)


(158
)Income from discontinued operations, net of income taxes


5,460



(550
)


410     Former operating segment Communications
    (Com)discontinued operation
     F-21




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Investments
    accounted for using the equity method Income (loss) from investments
    accounted for using the equity method, net
  U.S.-based
  Investments accounted for using the equity method
    September 30,2007Cash and cash equivalents*


750Trade and other receivables


572Inventories


246Goodwill


Property, plant and equipment


6Other financial assets


265Other assets


281Assets classified as held for disposal


2,120Trade payables


388Current provisions


67Pension plans and similar commitments


148Payroll and social security taxes


101Other liabilities


694Liabilities associated with assets classified as held for
    disposal


1,398    *
    As of September 30, 2007, this caption also includes a
    portion still related to the carrier-related operations. F-22




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
     Year ended September 30,2008


2007


2006Revenue


3,155



7,576



13,428Costs and expenses


(3,592
)


(8,086
)


(13,294
)Loss on measurement to fair value less costs to sell


(88
)


(567
)


Gain (loss) related to the contribution of the
    carrier-related
    operations to NSN


(12
)


1,627



Loss on disposal of the SEN business


(1,015
)






Income (loss) from discontinued operations before income
    taxes


(1,552
)


550



134Income taxes corresponding to ordinary activities including
    the
    measurement to fair value less costs to sell


59



196



159Income taxes corresponding to the gain (loss) related to the 
    contribution of the carrier-related operations to NSN


7



(67
)


Income taxes corresponding to the loss related to the
    contribution
    of the Siemens Enterprise Business to EN


53







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


(1,433
)


679



293       Other Dispositions:
  Other operating income.
  Other operating income.
  Other operating income
  Other operating expense.
   F-23




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Investments accounted for using the equity
    method assets classified as held for disposal
    5. Restructuring
    expense
  Income (loss) from continuing operations before
    income taxes. Other
    current liabilities
  6. Other
    operating income
  Year ended September 30,2008


2007


2006Gains on sales of property, plant and equipment and intangibles


314



289



208Gains on disposals of businesses


447



196



54Other


286



195



3671,047



680



629   Gains on disposals of businesses
  Other
  7. Other
    operating expense
  Year ended September 30,2008


2007


2006Losses on disposals of businesses


(112
)


(48
)


(109
)Impairment of goodwill (see Note 16)


(78
)


(60
)


Losses on sales of property, plant and equipment and intangibles


(49
)


(86
)


(40
)Other


(1,989
)


(859
)


(111
)(2,228
)


(1,053
)


(260
)  F-24




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Other Other
  Other Other Other
  8. Income
    (loss) from investments accounted for using the equity method,
    net
  Year ended September 30,2008


2007


2006Share of profit, net


259



75



416Gains (losses) on sales, net


1



35



(7
)Impairment






(2
)


(5
)260



108



404   Share of profit, net
  9. Financial
    income (expense), net
  Year ended September 30,2008


2007


2006Income from pension plans and similar commitments, net


136



196



225Income from available-for-sale financial assets, net


89



58



152Interest income (expense), net


60



(139
)


160Other financial income (expense), net


(163
)


(123
)


(283
)122



(8
)


254  F-25




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Income from pension plans and similar
    commitments, net
  Year ended September 30,2008


2007


2006Expected return on plan assets


1,510



1,457



1,373Interest cost


(1,374
)


(1,261
)


(1,148
)Income from pension plans and similar commitments, net


136



196



225   Cost of goods sold and
    services rendered Research and development expenses Marketing, selling and general administrative expenses
  Income from available-for-sale financial
    assets, net
  Year ended September 30,2008


2007


2006Dividends received


70



102



82Gains on sales, net


45



30



171Impairment


(36
)


(94
)


(95
)Other


10



20



(6
)Income from available-for-sale financial assets, net


89



58



152   Gains on sales, net
    Year ended September 30,2008


2007


2006Interest income


894



758



685Interest expense


(834
)


(897
)


(525
)Interest income (expense), net


60



(139
)


160Thereof: Interest income (expense) of operations, net


60



(42
)


(61
)Thereof: Other interest income (expense), net






(97
)


221   Interest income (expense) of operations, net Other interest income (expense), net
  Other financial income (expense), net
 F-26




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  10. Income
    taxes
    Year ended September 30,2008


2007


2006Germany


(449
)


1,556



1,282Foreign


3,323



3,545



2,1362,874



5,101



3,418     Year ended September 30,2008


2007


2006German corporation and trade taxes


124



450



306Foreign income taxes


1,001



760



5991,125



1,210



905Deferred tax:Germany


(212
)


(156
)


(133
)Foreign


102



138



4(110
)


(18
)


(129
)Income tax expense


1,015



1,192



776          F-27




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Year ended September 30,2008


2007


2006Expected income tax expense


891



1,989



1,333Increase (decrease) in income taxes resulting from:Non-deductible losses and expenses


533



545



217Goodwill


1



(34
)


(21
)Tax-free income


(259
)


(552
)


(475
)Taxes for prior years


(31
)


(572
)


(112
)Change in judgment of realizability of deferred tax assets


34



(147
)


123Change in tax rate effect


6



323



4Foreign tax rate differential


(86
)


(310
)


(120
)Tax effect of investments accounted for using the equity
    method


(79
)


(40
)


(160
)Other, net


5



(10
)


(13
)Actual income tax expense


1,015



1,192



776    F-28




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    As of September 30,2008


2007Assets:Financial assets


50



58Other intangible assets


40



48Property, plant and equipment


455



431Inventories


425



550Receivables


694



965Pension plans and similar commitments


1,431



1,422Provisions


1,611



1,588Liabilities


1,548



860Tax loss and credit carryforward


2,500



1,936Other


331



264Deferred tax assets


9,085



8,122Liabilities:Other intangible assets


743



667Property, plant and equipment


752



678Inventories


1,687



1,606Receivables


1,307



908Provisions


983



872Liabilities


875



888Other


455



489Deferred tax liabilities


6,802



6,108Total deferred tax assets, net


2,283



2,014        F-29




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    As ofSeptember 30,2008


2007Deductible temporary differences


260



182Tax loss carryforward


602



565862



747         Year ended September 30,2008


2007


2006Continuing operations


1,015



1,192



776Discontinued operations


(184
)


1,001



(1
)Income and expense recognized directly in equity


(120
)


326



(294
)Other changes in equity*






(499
)


316711



2,020



797    *
    Tax effect of reclassification on conversion right (see
    Notes 23 and 27 for further information).  11.
    Available-for-sale
    financial assets    September 30, 2008UnrealizedCost


Fair Value


Gain


LossEquity instruments


32



26







(6
)Debt instruments


84



85



1



Fund shares


40



41



1



156



152



2



(6
)   F-30




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  September 30, 2007Fair


UnrealizedCost


Value


Gain


LossEquity instruments


44



65



21



Debt instruments


94



94







Fund shares


34



34







172



193



21



     Financial income, net Income (loss) from discontinued operations, net of income
    taxes
  
    In April 2006, the Company completed the sale of its remaining
    interest in Infineon, representing 136.3 million shares,
    for net proceeds of 1,127. The transaction resulted in a
    gain of 33 (see also Note 9). In connection with the
    sale, 50 was reclassified from Other components of
    equity, net of income tax to net income. As a result of the
    transaction, the Company no longer owns any shares of Infineon.
    In March 2006, the Company sold its remaining interest in Epcos,
    representing 8.2 million shares, for net proceeds of
    90. The transaction resulted in a pre-tax gain of 15
    (see also Note 9).
    In November 2005, the Companys former segment Com, sold
    its remaining interest in Juniper, representing
    22.8 million shares, for net proceeds of 465. The
    transaction resulted in a pre-tax gain of 356, included in
    Income (loss) from discontinued operations, net of income
    taxes.    Other financial assets
  12.
    Trade and
    other receivables  September 30,2008


2007Trade receivables from the sale of goods and services


14,062



12,864Receivables from finance leases


1,674



1,658Receivables from joint ventures and associates and other
    companies*


49



9815,785



14,620    *
    Other companies, in the context of the above line item, are
    those in which Siemens has an ownership interest of less than
    20% and exercises no significant influence over their operating
    and financial policies. F-31




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
     Year ended September 30,2008


2007


2006Valuation allowance as of beginning of fiscal year


895



956



1,199Increase in valuation allowances recorded in the income
    statement in
    the current period


271



116



167Write-offs charged against the allowance


(154
)


(130
)


(263
)Recoveries of amounts previously written-off


18



24



40Foreign exchange translation differences


(6
)


(30
)


(22
)Reclassification to Assets held for disposal


(11
)


(41
)


(165
)Valuation allowance as of fiscal year-end


1,013



895



956     September 30,2008


2007Receivables from finance leases, current


1,674



1,658Receivables from finance leases, long-term portion


3,486



3,1125,160



4,770     September 30,20082009


2,0672010


1,4822011


1,0932012


6272013


326Thereafter


210Minimum future lease payments to be received


5,805  F-32




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    September 30,2008


2007Minimum future lease payments


5,805



5,332Plus: Unguaranteed residual values


190



190Gross investment in leases


5,995



5,522Less: Unearned finance income


(735
)


(662
)Less: Allowance for doubtful accounts


(100
)


(90
)Net investment in leases


5,160



4,770Less: Present value of unguaranteed residual value


(151
)


(157
)Present value of minimum lease payments receivable


5,009



4,613     September 30,2008


2007Gross investment in leases


5,995



5,522Within 1 year


2,100



1,9691 to 5 years


3,650



3,302Thereafter


245



251Present value of minimum lease payments receivable


5,009



4,613Within 1 year


1,722



1,6081 to 5 years


3,095



2,814Thereafter


192



191     Trade and other
    receivables Assets classified as held for
    disposal
  13. Other
    current financial assets
  September 30,2008


2007Derivative financial instruments


593



758Loans receivable


701



491Receivables from joint ventures and associates and related
    companies


100



229Other


1,722



1,4543,116



2,932  F-33




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  14. Inventories
  September 30,2008


2007Raw materials and supplies


2,593



2,201Work in process


3,588



3,196Costs and earnings in excess of billings on uncompleted contracts


7,537



7,099Finished goods and products held for resale


2,835



2,558Advances to suppliers


794



75117,347



15,805Advance payments received


(2,838
)


(2,875
)14,509



12,930   Costs and earnings in excess of billings on uncompleted
    contracts Other current liabilities.
    Inventories Assets held for disposal
  15.
    Other
    current assets  September 30,2008


2007Other tax receivables


742



635Prepaid expenses


322



345Other


304



3421,368



1,322  F-34




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  16. Goodwill
    Year endedSeptember 30,2008


2007CostBalance at beginning of year


13,589



10,818Translation differences and other


(135
)


(726
)Acquisitions and purchase accounting adjustments


3,737



5,096Adjustments from the subsequent recognition of deferred tax
    assets


(3
)


(34
)Dispositions and reclassifications to assets held for disposal


(630
)


(1,565
)Balance at year-end


16,558



13,589Accumulated impairment losses and other changesBalance at beginning of year


1,088



1,129Translation differences and other


(16
)


(92
)Impairment losses recognized during the period


78



60Dispositions and reclassifications to assets held for disposal


(596
)


(9
)Balance at year-end


554



1,088Net book valueBalance at beginning of year


12,501



9,689Balance at year-end


16,004



12,501   Dispositions andNet book


Translation


Acquisitions and


reclassifications





Net bookvalue as of


differences


purchase accounting


to assets held for





value as of10/1/2007


and other


adjustments*


disposal


Impairments


9/30/2008SectorsIndustry


4,739



(48
)


233



(17
)






4,907Energy


2,210



(55
)


85











2,240Healthcare


5,197



7



3,413











8,617Cross-Sector BusinessesSiemens IT Solutions and Services


129



(9
)


3











123Siemens Financial Services (SFS)


126



(15
)














111Other Operations


100



1







(17
)


(78
)


6Siemens


12,501



(119
)


3,734



(34
)


(78
)


16,004    *
    Includes adjustments from the subsequent recognition of deferred
    tax assets.  F-35




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Dispositions andNet book


Translation


Acquisitions and


reclassifications





Net bookvalue as of


differences


purchase accounting


to assets held for





value as of10/1/2006


and other


adjustments*


disposal


Impairments


9/30/2007SectorsIndustry


2,869



(169
)


2,050



(11
)






4,739Energy


2,081



(64
)


203



(10
)






2,210Healthcare


2,793



(396
)


2,800











5,197Cross-Sector BusinessesSiemens IT Solutions and Services


127



(1
)


3











129Siemens Financial Services (SFS)


130



(4
)














126Other Operations


159



1











(60
)


100Siemens VDO Automotive (SV)


1,530



(1
)


6



(1,535
)






Siemens


9,689



(634
)


5,062



(1,556
)


(60
)


12,501    *
    Includes adjustments from the subsequent recognition of deferred
    tax assets.      Assets classified as held for disposal
     F-36




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  17. Other
    intangible assets
  Gross




















Netcarrying





Additions








Gross





bookamount as





through








carrying





value


Amortizationof


Translation


business








amount as of


Accumulated


as of


during fiscal10/1/2007


differences


combinations


Additions


Retirements*


9/30/2008


amortization


9/30/2008


year 2008**Software and other internally generated intangible
    assets


2,362



(16
)


33



420



(307
)


2,492



(1,532
)


960



(368
)Patents, licenses and similar
    rights


5,406



(70
)


1,260



102



(174
)


6,524



(2,071
)


4,453



(528
)Other intangible assets


7,768



(86
)


1,293



522



(481
)


9,016



(3,603
)


5,413



(896
)     *
    Includes Other intangible assetsreclassified to
    Assets classified as held for disposal(see Note 4).**
    Includes Impairments of (98).  Gross




















Netcarrying





Additions








Gross





book


Amortizationamount as





through








carrying





value


duringof


Translation


business








amount as of


Accumulated


as of


fiscal year10/1/2006


differences


combinations


Additions


Retirements*


9/30/2007


amortization


9/30/2007


2007***Software and other internally
    generated intangible
    assets


2,318



(111
)


34



396



(275
)


2,362



(1,468
)


894



(429
)**Patents, licenses and similar
    rights


4,075



(209
)


2,015



78



(553
)


5,406



(1,681
)


3,725



(450
)Other intangible assets


6,393



(320
)


2,049



474



(828
)


7,768



(3,149
)


4,619



(879
)    *
    Includes Other intangible assetsreclassified to
    Assets classified as held for disposal(see Note 4).**
    Includes (106) impairment in connection with the
    Companys regional sales organization in Germany.***
    Includes amortization expense of (71) (fiscal 2006
    184) reported in Income (loss) from discontinued
    operations, net of income taxes.  Cost
    of goods sold and services rendered Research and
    development expenses Marketing, selling and general
    administrative expenses
   F-37




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  18. Property,
    plant and equipment
  Gross





Additions











Gross





Net


Depreciationcarrying





through











carrying





book


andamount





business











amount





value


impairmentas of


Translation


combi-





Reclassi-





as of


Accumulated


as of


during fiscal10/1/07


differences


nations


Additions


fications


Retirements*


9/30/08


depreciation


9/30/08


year 2008**Land and buildings


8,639



(13
)


169



251



189



(1,007
)


8,228



(3,877
)


4,351



(334
)Technical machinery and equipment


7,885



(40
)


165



519



294



(571
)


8,252



(5,668
)


2,584



(619
)Furniture and office equipment


6,740



(60
)


88



791



126



(1,031
)


6,654



(5,085
)


1,569



(818
)Equipment leased to others


2,019



(38
)


200



550



39



(140
)


2,630



(1,055
)


1,575



(347
)Advances to suppliers and construction in progress


894



(4
)


27



937



(648
)


(26
)


1,180



(1
)


1,179



(1
)Property, plant and equipment


26,177



(155
)


649



3,048







(2,775
)


26,944



(15,686
)


11,258



(2,119
)    *
    Includes Property, plant and equipmentreclassified to
    Assets classified as held for disposal(see Note 4).**
    Includes Impairments of (213).  Additions

















Net


DepreciationGross





through











Gross





book


andcarrying





business











carrying





value


impairmentamount


Translation


combi-





Reclassi-





amount


Accumulated


as of


during fiscal10/1/06


differences


nations


Additions


fications


Retirements*


9/30/07


depreciation


9/30/07


year 2007**Land and buildings


9,800



(148
)


239



341



177



(1,770
)


8,639



(4,174
)


4,465



(292
)Technical machinery and equipment


9,780



(231
)


137



564



353



(2,718
)


7,885



(5,501
)


2,384



(709
)Furniture and office equipment


8,406



(141
)


76



786



117



(2,504
)


6,740



(5,196
)


1,544



(873
)Equipment leased to others


1,614



(128
)


160



548



23



(198
)


2,019



(751
)


1,268



(256
)Advances to suppliers and construction in progress


1,100



(24
)


63



728



(670
)


(303
)


894







894



Property, plant and
    equipment


30,700



(672
)


675



2,967







(7,493
)


26,177



(15,622
)


10,555



(2,130
)    *
    Includes Property, plant and equipmentreclassified to
    Assets classified as held for disposal(see Note 4).**
    Includes (313) (fiscal 2006: (532)) depreciation and
    impairment expense reported in Income (loss) from
    discontinued operations, net of income taxes.    Investment
    property
     F-38




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  19. Investments
    accounted for using the equity method
    September 30,2008


2007Total assets*


27,300



26,457Total liabilities*


18,642



17,355    *
    Balance sheet information for BSH and Areva as of June 30,
    for NSN as of September 30.  Year ended September 30,2008


2007


2006Revenue**


27,871



18,631



10,723Net income (loss)**


(24
)


(628
)


322    **
    Income statement information for NSN for the twelve months ended
    September 30, 2008 and the six months ended
    September 30, 2007; for BSH and Areva for the twelve months
    ended June 30, 2008, 2007 and 2006.    September 30,2008


2007Total assets


3,063



3,352Total liabilities


2,771



2,960   Year ended September 30,2008


2007


2006Revenue


6,169



6,895



6,847Net income (loss)


(23
)


68



71     20. Other
    financial assets
  September 30,2008


2007Receivables from finance leases (see Note 12)


3,486



3,112Loans receivable


1,417



596Available-for-sale financial assets


551



742Trade receivables from sale of goods and services


471



382Derivative financial instruments


404



185Other


1,456



5447,785



5,561  F-39




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Available-for-sale financial assets Derivative financial instruments Loans receivables
  21. Other
    current financial liabilities
  September 30,2008


2007Derivative financial instruments (see Notes 31 and 32)


1,198



721Accrued interest expense


191



147Liabilities to joint ventures and associated and other companies


101



315Other


937



1,3702,427



2,553   , Other
  22. Other
    current liabilities
  September 30,2008


2007Billings in excess of costs and estimated earnings on
    uncompleted
    contracts and related advances


11,390



8,463Other employee related costs


3,160



2,261Payroll and social security taxes


2,048



1,956Bonus obligations


1,132



1,073Other tax liabilities


743



663Deferred income


651



561Other


2,520



2,08121,644



17,058   Other employee related costs
 F-40




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  23. Debt
  September 30,2008


2007Short-termNotes and bonds


1,024



693Loans from banks


479



478Other financial indebtedness


265



4,418Obligations under finance leases


51



48Short-term debt and current maturities of long-term debt


1,819



5,637Long-termNotes and bonds (maturing 20092066)


11,942



8,196Loans from banks (maturing 20092016)


1,856



871Other financial indebtedness (maturing 20092027)


280



555Obligations under finance leases


182



238Long-term debt


14,260



9,86016,079



15,497     Commercial
    paper
  Other financial indebtedness
  Credit
    facilities
    Assignable
    loans
   F-41




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Notes
    and bonds
         F-42




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    September 30, 2008


September 30, 2007Currency


Currency(notional amount)


*


(notional amount)


*6% 1998/2008 U.S.$ notes














USD



970



693U.S.$ LIBOR+0.05% 2006/2009 U.S.$ notes


USD



750



524



USD



750



5295.75% 2001/2011 EUR bonds


EUR



2,000



2,031



EUR



2,000



2,0415.5% 2006/2012 U.S.$ notes


USD



750



552



USD



750



540U.S.$ LIBOR+0.15% 2006/2012 U.S.$ notes


USD



500



349



USD



500



3515.75% 2006/2016 U.S.$ notes


USD



1,750



1,323



USD



1,750



1,2595.625% 2006/2016 U.S.$ notes


USD



500



374



USD



500



3566.125% 2006/2026 U.S.$ notes


USD



1,750



1,367



USD



1,750



1,2515.25% 2006/2066 EUR bonds


EUR



900



857



EUR



900



8496.125% 2006/2066 GBP bonds


GBP



750



928



GBP



750



1,020ER3M 2008/2009 (Extendible)


EUR



500



500











5.25% 2008/2011 EUR Medium Term Note


EUR



1,550



1,555











5.375% 2008/2014 EUR Medium Term Note


EUR



1,000



999











5.625% 2008/2018 EUR Medium Term Note


EUR



1,600



1,607











12,966











8,889   *
    Includes adjustments for fair value hedge accounting.    Fiscal year2009


1,7682010


1692011


2,0692012


2,5142013


1,190Thereafter


8,13615,846   Convertible
    notes
    Other current financial liabilities Additional
    paid-in capital
 F-43




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Additional paid-in
    capital
    Other
    financial indebtedness
  Other financial indebtedness Other financial
    indebtedness
 F-44




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Obligations
    under finance leases
    September 30, 2008


September 30, 2007Present








Presentvalue of








value ofMinimum





minimum


Minimum





minimumlease


Unamortized


lease


lease


Unamortized


leasepayment


interest


payment


payment


interest


paymentDue

obligation


expense


obligation


obligation


expense


obligationWithin 1 year


63



12



51



64



16



481 to 2 years


29



9



20



63



12



512 to 3 years


34



7



27



29



9



203 to 4 years


46



6



40



65



6



594 to 5 years


22



5



17



14



6



8Thereafter


93



15



78



120



20



100Total


287



54



233



355



69



286Less: Current portion










(51
)










(48
)182











238   24. Pension
    plans and similar commitments
        Accounting
    for defined benefit plans
  Consolidated
    Balance Sheets
  Defined Benefit Obligation (DBO)
 F-45




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
      September 30,2008


2007Principal pension benefit plans


2,580



1,289Principal other post-employment benefit plans


639



766Other


1,142



1,232Reclassification to liabilities held for disposal






(507
)Liabilities for pension plans and similar commitments


4,361



2,780Prepaid costs for post-employment benefits


99



182Actuarial (losses)/gains and effects due to asset ceiling


(1,591
)


127Income tax effect


(16
)


(18
)Net amount recognized in the Consolidated Statements of
    Income and
    Expense recognized in Equity (net of tax)


(1,607
)


109   Consolidated
    Statements of Income
  net periodic benefit cost (NPBC) service cost interest
    cost discount rate expected return on plan assets Past service cost
  Financial income, net Cost
    of goods sold and services rendered Research and
    development expenses Marketing, selling and general
    administrative expenses
    Consolidated
    Statements of Income and Expense recognized in
    Equity
   F-46




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Consolidated
    Statements of Cash Flow
      Principal
    pension benefits
  and/or
    
    Pension obligations and funded status,
    Components of NPBC,
    Amounts recognized in the Consolidated Statements of Income and
    Expense recognized in Equity,
    Assumptions used for the calculation of the DBO and NPBC,
    Sensitivity analysis,
    Plan assets,
    Pension plan funding, and
    Pension benefit payments.   F-47




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Pension
    benefits: Pension obligations and funded status
    September 30, 2008


September 30, 2007Total


Domestic


Foreign


Total


Domestic


ForeignFair value of plan assets


20,194



12,340



7,854



24,013



14,753



9,260Total defined benefit obligation


22,654



13,782



8,872



25,052



15,488



9,564Defined benefit obligation (funded)


22,474



13,782



8,692



24,581



15,210



9,371Defined benefit obligation (unfunded)


180







180



471



278



193Funded status*


(2,460
)


(1,442
)


(1,018
)


(1,039
)


(735
)


(304
)Germany


(1,442
)










(735
)U.S.


(588
)










(202
)U.K.


(156
)










(40
)Other


(274
)










(62
)Unrecognized past service cost (benefits)


(70
)






(70
)


(75
)






(75
)Effects due to asset ceiling














(14
)






(14
)Net amount recognized


(2,530
)


(1,442
)


(1,088
)


(1,128
)


(735
)


(393
)Amounts recognized in the Consolidated Balance Sheets consist of:Pension asset


50



17



33



161



33



128Pension liability


(2,580
)


(1,459
)


(1,121
)


(1,289
)


(768
)


(521
)    *
    Funded status: The funded status shows the surplus (deficit) of
    the DBO relative to the plan assets as of the balance sheet
    date. The DBO is calculated based on the projected unit credit
    method and reflects the net present value as of the balance
    sheet date of the accumulated pension entitlements of active
    employees, former employees with vested rights and of retirees
    and their surviving dependents with consideration of future
    compensation and pension increases.   F-48




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    September 30, 2008


September 30, 2007Total


Domestic


Foreign


Total


Domestic


ForeignChange in defined benefit obligations:Defined benefit obligation at beginning of year


25,052



15,488



9,564



26,696



16,372



10,324Foreign currency exchange rate changes


(340
)






(340
)


(556
)






(556
)Service cost


511



279



232



684



358



326Interest cost


1,246



765



481



1,233



725



508Settlements and curtailments


(46
)


(26
)


(20
)


(13
)






(13
)Plan participants contributions


135



87



48



180



119



61Amendments and other


22



12



10



283



(7
)


290Actuarial (gains) losses


(1,748
)


(1,612
)


(136
)


(1,660
)


(863
)


(797
)Acquisitions


109



68



41



101



55



46Divestments


(1,026
)


(408
)


(618
)


(670
)


(453
)


(217
)Benefits paid


(1,261
)


(871
)


(390
)


(1,226
)


(818
)


(408
)Defined benefit obligation at end of year


22,654



13,782



8,872



25,052



15,488



9,564Germany


13,782











15,488U.S.


2,933











3,250U.K.


3,003











3,229Other


2,936











3,085      F-49




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    September 30, 2008


September 30, 2007Total


Domestic


Foreign


Total


Domestic


ForeignChange in plan assets:Fair value of plan assets at beginning of year


24,013



14,753



9,260



23,755



15,023



8,732Foreign currency exchange rate changes


(384
)






(384
)


(508
)






(508
)Expected return on plan assets


1,471



929



542



1,513



947



566Actuarial gains (losses) on plan assets


(3,648
)


(2,556
)


(1,092
)


(218
)


(369
)


151Acquisitions and other


56



12



44



293







293Divestments and other


(750
)


(126
)


(624
)


(610
)


(417
)


(193
)Employer contributions (regular)


562



112



450



837



271



566Plan participants contributions


135



87



48



177



116



61Benefits paid


(1,261
)


(871
)


(390
)


(1,226
)


(818
)


(408
)Fair value of plan assets at end of year


20,194



12,340



7,854



24,013



14,753



9,260Germany


12,340











14,753U.S.


2,345











3,048U.K.


2,847











3,189Other


2,662











3,023   Divestments Divestments and other
  Pension
    benefits: Components of NPBC
    Year ended


Year ended


Year endedSeptember 30, 2008


September 30, 2007


September 30, 2006Total


Domestic


Foreign


Total


Domestic


Foreign


Total


Domestic


ForeignService cost


511



279



232



684



358



326



715



388



327Interest cost


1,246



765



481



1,233



725



508



1,125



679



446Expected return on plan assets


(1,471
)


(929
)


(542
)


(1,513
)


(947
)


(566
)


(1,433
)


(953
)


(480
)Amortization of past service cost (benefits)


(1
)






(1
)


(5
)






(5
)


99



(24
)


123Loss (gain) due to settlements and curtailments


(46
)


(26
)


(20
)


(4
)






(4
)


2







2Net periodic benefit cost


239



89



150



395



136



259



508



90



418Germany


89











136











90U.S.


132











137











159U.K.


15











105











113Other


3











17











146    F-50




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Pension
    benefits: Amounts recognized in the Consolidated Statements of
    Income and Expense recognized in Equity
    Year ended


Year ended


Year endedSeptember 30, 2008


September 30, 2007


September 30, 2006Total


Domestic


Foreign


Total


Domestic


Foreign


Total


Domestic


ForeignActuarial losses (gains)


1,900



944



956



(1,442
)


(494
)


(948
)


(112
)


16



(128
)Effects due to asset ceiling














13







13











Income tax effect


(50
)


252



(302
)


206



(83
)


289



(225
)


(266
)


41Net amount recognized in the
    Consolidated Statements of
    Income and Expense recognized
    in Equity (net of tax)


1,850



1,196



654



(1,223
)


(577
)


(646
)


(337
)


(250
)


(87
)Germany


1,196











(577
)










(250
)U.S.


198











(185
)










(45
)U.K.


263











(322
)










12Other


193











(139
)










(54
)   Pension
    benefits: Assumptions for the calculation of the DBO and
    NPBC
      Year ended


Year endedSeptember 30, 2008


September 30, 2007Total


Domestic


Foreign


Total


Domestic


ForeignDiscount rate


6.2%



6.4%



6.0%



5.3%



5.1%



5.6%Germany


6.4%











5.1%U.S.


6.79%











6.29%U.K.


6.5%











6.0%Rate of compensation increase


2.9%



2.25%



3.8%



2.7%



2.25%



3.5%Germany


2.25%











2.25%U.S.


4.05%











3.96%U.K.


4.5%











4.0%Rate of pension progression


1.9%



1.75%



2.2%



1.6%



1.5%



2.0%Germany


1.75%











1.5%U.K.


3.6%











3.1%    F-51




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
      Year ending


Year ended


Year ended


Year endedSeptember 30, 2009


September 30, 2008


September 30, 2007


September 30, 2006Total


Dom.


For.


Total


Dom.


For.


Total


Dom.


For.


Total


Dom.


For.Discount rate


6.2%



6.4%



6.0%



5.3%



5.1%



5.6%



4.7%



4.5%



5.0%



4.6%



4.35%



5.1%Germany


6.4%











5.1%











4.5%











4.35%U.S.


6.79%











6.29%











5.95%











5.7%U.K.


6.5%











6.0%











5.0%











5.0%Expected return on plan assets


6.5%



6.5%



6.4%



6.5%



6.5%



6.5%



6.5%



6.5%



6.5%



6.7%



6.7%



6.7%Germany


6.5%











6.5%











6.5%











6.7%U.S.


6.97%











6.97%











6.95%











6.95%U.K.


6.5%











6.7%











6.7%











6.75%Rate of compensation increase


2.9%



2.25%



3.8%



2.7%



2.25%



3.5%



2.7%



2.25%



3.4%



2.6%



2.25%



3.3%Germany


2.25%











2.25%











2.25%











2.25%U.S.


4.05%











3.96%











3.95%











3.25%U.K.


4.5%











4.0%











3.7%











3.9%Rate of pension progression


1.9%



1.75%



2.2%



1.6%



1.5%



2.0%



1.2%



1.0%



1.8%



1.3%



1.0%



2.1%Germany


1.75%











1.5%











1.0%











1.0%U.K.


3.6%











3.1%











2.8%











2.8%       Pension
    benefits: Sensitivity analysis
    Effect on NPBC 2009 due to aone-percentage-


one-percentage-point/500


point/500increase


decreaseDiscount rate


8



(8
)Expected return on plan assets


(187
)


187Rate of compensation increase


21



(20
)Rate of pension progression


130



(111
)Fair value of plan assets


(32
)


32    F-52




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##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Pension
    benefits: Plan assets
    Target asset


Asset allocationallocation


September 30, 2008


September 30, 2007Asset class

September 30, 2009


Total


Domestic


Foreign


Total


Domestic


ForeignEquity


20-50%



29%



29%



29%



33%



29%



39%Fixed income


40-70%



61%



62%



61%



54%



61%



42%Real estate


5-15%



9%



8%



10%



8%



7%



11%Cash and other assets


5-15%



1%



1%



0%



5%



3%



8%100%



100%



100%



100%



100%



100%         Year ended

Year ended

Year endedSeptember 30, 2008

September 30, 2007

September 30, 2006Total

Domestic

Foreign

Total

Domestic

Foreign

Total

Domestic

ForeignActual return on plan assets


(2,177
)


(1,627
)


(550
)


1,295



578



717



1,366



741



625    F-53




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##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Pension
    benefits: Pension plan funding
    (Unaudited)Year endingSeptember 30, 2009


Year ended


Year ended(expected)


September 30, 2008


September 30, 2007Total


Domestic


Foreign


Total


Domestic


Foreign


Total


Domestic


ForeignRegular funding


391



194



197



562



112



450



837



271



566Supplemental cash Contributions


































Total


391



194



197



562



112



450



837



271



566     Pension
    benefits: Pension benefit payments
    Total


Domestic


ForeignPension benefits paid2007


1,226



818



4082008


1,261



871



390Expected pension payments2009


1,260



877



3832010


1,284



895



3892011


1,317



914



4032012


1,330



940



3902013


1,331



937



3942014-2018


7,040



4,895



2,145     Principal
    other post-employment benefits
   F-54




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##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
      
    Obligations and funded status,
    Plan assets,
    Components of NPBC,
    Amounts recognized in the Consolidated Statements of Income and
    Expense recognized in Equity,
    Assumptions used in the calculation of the DBO and the NPBC,
    Sensitivity analysis, and
    Benefit payments.    Other
    post-employment benefits: Obligations and funded
    status
    September 30, 2008


September 30, 2007Total


Domestic


Foreign


Total


Domestic


ForeignFair value of plan assets


3







3



3







3Total defined benefit obligation


650



288



362



779



321



458Defined benefit obligation (funded)


247







247



287







287Defined benefit obligation (unfunded)


403



288



115



492



321



171Funded status


(647
)


(288
)


(359
)


(776
)


(321
)


(455
)Unrecognized past service cost (benefits)


8







8



10







10Net amount recognized


(639
)


(288
)


(351
)


(766
)


(321
)


(445
)  F-55




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##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    September 30, 2008


September 30, 2007Total


Domestic


Foreign


Total


Domestic


ForeignChange in benefit obligations:Defined benefit obligation at beginning of year


779



321



458



845



429



416Foreign currency exchange rate changes


(7
)






(7
)


(42
)






(42
)Service cost


18



10



8



24



12



12Interest cost


38



16



22



42



16



26Settlements and curtailments


(3
)


(7
)


4











Plan amendments and other














69







69Actuarial (gains) losses


(27
)


(14
)


(13
)


(33
)


(36
)


3Acquisitions














12







12Divestments


(79
)


(1
)


(78
)


(69
)


(68
)


(1
)Benefits paid


(69
)


(37
)


(32
)


(69
)


(32
)


(37
)Defined benefit obligation at end of year


650



288



362



779



321



458   Other
    post-employment benefits: Plan assets
    September 30, 2008


September 30, 2007Total


Domestic


Foreign


Total


Domestic


ForeignChange in plan assets:Fair value of plan assets at beginning of year


3







3



3







3Employer contributions


32







32



37







37Benefits paid


(32
)






(32
)


(37
)






(37
)Fair value of plan assets at year end


3







3



3







3   Other
    post-employment benefits: Components of NPBC
    Year ended


Year ended


Year endedSeptember 30, 2008


September 30, 2007


September 30, 2006Total


Domestic


Foreign


Total


Domestic


Foreign


Total


Domestic


ForeignService cost


18



10



8



24



12



12



26



15



11Interest cost


38



16



22



42



16



26



45



18



27Amortization of unrecognized
    past service cost (benefits)


1







1















(1
)






(1
)Loss (gain) due to settlements
    and curtailments


(3
)


(7
)


4























Net periodic benefit cost


54



19



35



66



28



38



70



33



37  F-56




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Other
    post-employment benefits: Amounts recognized in the Consolidated
    Statements of Income and Expense recognized in
    Equity
    Year ended


Year ended


Year endedSeptember 30, 2008


September 30, 2007


September 30, 2006Total


Domestic


Foreign


Total


Domestic


Foreign


Total


Domestic


ForeignActuarial losses (gains)


(27
)


(14
)


(13
)


(33
)


(36
)


3



(14
)


4



(18
)Income tax effect


9



4



5



10



11



(1
)


4



(3
)


7Net amount recognized
    in the Consolidated
    Statements of Income
    and Expense recognized
    in Equity (net of tax)


(18
)


(10
)


(8
)


(23
)


(25
)


2



(10
)


1



(11
)Germany


(10
)










(25
)










1U.S.


(5
)










3











(11
)Canada


(3
)










(1
)










   Other
    post-employment benefits: Assumptions used in the calculation of
    the DBO and NPBC
      Year ended

Year ended

Year endedSeptember 30, 2008

September 30, 2007

September 30, 2006Discount rate

6.70%

6.16%

5.95%U.S.:Medical trend rates (initial/ultimate/year):Medicare ineligible pre-65

9%/5%/2017

9%/5%/2011

10%/5%/2011Medicare eligible post-65

9%/5%/2017

9%/5%/2011

10%/5%/2011Fixed dollar benefit



4.5%

4.5%Dental trend rates (initial/ultimate/year)

6%/5%/2021

6%/5%/2021

6%/5%/2021Canada:Medical trend rates

5.00%

4.68%

5.0%Drug trend rates

7%/5%/2010

4.18%

4.5%Dental trend rates

4.00%

4.18%

4.5%    F-57




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Other
    post-employment benefits: Sensitivity analysis
    September 30, 2008 One-percentage-pointincrease

decreaseEffect on defined benefit obligation


29



(26
)Effect on total of service and interest cost components


2



(2
)   Other
    post-employment benefits: Benefit payments
    Total


Domestic


ForeignPayments for other post-employment benefits2007


69



32



372008


69



37



32Expected payments for other post-employment benefits2009


46



21



252010


66



40



262011


54



27



272012


58



31



272013


53



25



282014-2018


334



190



144     Defined
    Contribution Plans and State Plans (continuing
    operations)
   F-58




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  25.
    Provisions  Order related


Asset retirementWarranties


losses and risks


obligations


Other


TotalBalance as of beginning of fiscal year


2,440



1,296



635



1,313



5,684Additions


1,329



1,320



18



1,792



4,459Usage


(651
)


(555
)


(23
)


(352
)


(1,581
)Reversals


(350
)


(280
)


(3
)


(222
)


(855
)Translation differences


(8
)


(31
)


(1
)


(2
)


(42
)Accretion expense and effect of changes
    in discount rates


3



6



53



7



69Other changes


(19
)


(51
)


3



31



(36
)Balance as of fiscal year-end


2,744



1,705



682



2,567



7,698Thereof non-current


805



556



647



525



2,533     Warranties
  Order related losses and risks
  Other
  Asset
    retirement obligations
  clean-up
  clean-up
 F-59




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Financial income
    (expense), net.
  26.
    Other
    liabilities  September 30,2008


2007Liabilities for employee related costs


1,033



926Deferred income


203



187Other


1,140



1,1872,376



2,300   27.
    Equity  Common
    stock
   F-60




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Common stock


Authorized capital


Conditional capital(authorized and issued)


(not issued)


(not issued)in


in


in


in


in


inthousands


thousand


thousands


thousand


thousands


thousandof 


shares


of 


shares


of 


sharesAs of September 30, 2005


2,673,256



891,085



666,630



222,210



925,487



308,496Conversion 1.375% 2003/2010
    EUR convertible notes (see Note 23)


6



2











(6
)


(2
)New approved capital










75,000



25,000







Expired capital










(66,630
)


(22,210
)






As of September 30, 2006


2,673,262



891,087



675,000



225,000



925,481



308,494Conversion 1.375% 2003/2010
    EUR convertible notes (see Note 23)


31,038



10,346











(31,038
)


(10,346
)Stock options (see Note 34)


34,440



11,480











(34,440
)


(11,480
)Employee share purchase program(see Note 34)


3,870



1,290



(3,870
)


(1,290
)






As of September 30, 2007


2,742,610



914,203



671,130



223,710



860,002(1
)


286,667(1
)Share-based payments (see Note 34)






















As of September 30, 2008


2,742,610



914,203



671,130



223,710



860,002(1
)


286,667(1
)     (1)
    Due to rounding, amounts presented may not add up
    precisely.  Authorized
    capital (not issued)
      and/or
     F-61




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Conditional
    capital (not issued)
          Treasury
    stock
       F-62




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
        Additional
    paid-in capital
    Other
    components of equity
    Year ended September 30, 2008


Year ended September 30, 2007


Year ended September 30, 2006Tax








Tax








TaxPretax


effect


Net


Pretax


effect


Net


Pretax


effect


NetUnrealized holding gains (losses) on available-for-sale
    financial assets


(158
)


10



(148
)


29







29



(317
)


8



(309
)Reclassification adjustments for (gains) losses included in
    net income


24



2



26



1







1



(49
)


4



(45
)Net unrealized gains (losses) on available-for-sale financial
    assets


(134
)


12



(122
)


30







30



(366
)


12



(354
)Unrealized gains (losses) on derivative financial
    instruments


(548
)


165



(383
)


48



(9
)


39



67



(27
)


40Reclassification adjustments for (gains) losses included in
    net income


212



(66
)


146



89



(28
)


61



28



(10
)


18Net unrealized gains (losses) on derivative financial
    instruments


(336
)


99



(237
)


137



(37
)


100



95



(37
)


58Foreign-currency translation differences


(314
)






(314
)


(566
)






(566
)


(320
)






(320
)(784
)


111



(673
)


(399
)


(37
)


(436
)


(591
)


(25
)


(616
)  F-63




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Miscellaneous
  (Aktiengesetz) (Handelsgesetzbuch)
    28.
    Additional
    capital disclosures    September 30,2008


2007


% ChangeTotal equityattributable to shareholders of Siemens AG


26,774



28,996



(8
)%As a % of total capital (see below)


62%



65%Short-term debt


1,819



5,637Long-term debt


14,260



9,860Total debt


16,079



15,497



4
%As a % of total capital


38%



35%Total capital (total equity and total debt)


42,853



44,493



(4
)%       4
 F-64




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    September 30,2008


2007Short-term debt


1,819



5,637Plus: Long-term debt


14,260



9,860Less: Cash and cash equivalents


(6,893
)


(4,005
)Less: Current available-for-sale financial assets


(152
)


(193
)Net debt


9,034



11,299Less: SFS Debt excluding internally purchased receivables


(9,359
)


(6,675
)Plus: Funded status pension plan


2,460



1,039Plus: DBO Other post-employment benefits


650



779Plus: Credit guarantees


480



386Less: approx. 50% nominal amount hybrid bond


(901
)


(1,000
)Adjusted industrial net debt


2,364



5,828     Moodys Investors


Standard &Service


PoorsLong-term debt


A1



AA−Short-term debt


P-1



A-1+     P-1,
     F-65




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    A-1+
  29.
    Commitments
    and contingencies  Guarantees
    and other commitments
    September 30,2008


2007GuaranteesCredit guarantees


480



386Guarantees of third-party performance


1,726



1,995Herkules obligations


3,890



4,200Other


3,435



1,8829,531



8,463   Credit guarantees and/or
  Guarantees of third-party
    performance agreed-upon
  HERKULES obligations
 F-66




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  9-year
  Other Other
    2009


6312010


4842011


3612012


2862013


262Thereafter


691         30.
    Legal
    Proceedings  Public
    corruption proceedings
  Governmental
    and related proceedings
    (tatsächliche Verständigung)
   F-67




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
        
    As previously reported, there are ongoing investigations in
    Switzerland, Italy, and Greece into allegations that certain
    current and former employees of the former Com Group opened
    slush fund accounts abroad and operated a system to
    misappropriate funds from the Company. The Company has learned
    that Liechtenstein prosecutors have transferred their
    investigation to Swiss and Munich prosecutors.
    As previously reported, Milan, Italy and Darmstadt, Germany
    prosecutors investigated allegations that former Siemens
    employees provided improper benefits to former employees of Enel
    in connection with Enel contracts. In Italy, legal proceedings
    against two former employees ended when the
    patteggiamento (plea bargaining procedure without
    the admission of guilt or responsibility) by the charged
    employees and Siemens AG entered into force in November 2006.
    Prosecutors in Darmstadt brought charges against two other
    former employees not covered by the patteggiamento.
    In May 2007, the Regional Court of Darmstadt sentenced one
    former employee to two years in prison, suspended on probation,
    on counts of commercial bribery and embezzlement. Another former
    employee was sentenced to nine months in prison, suspended on
    probation, on counts of aiding and abetting commercial bribery.
    In connection with these sentences, Siemens AG was ordered to
    disgorge 38 of profits. In August 2008, the German Federal
    Supreme Court (Bundesgerichtshof) reversed the
    convictions of the former employees on counts of commercial
    bribery and aiding and abetting commercial bribery. As a
    consequence, the Federal Supreme Court also reversed the
    disgorgement order of 38 of profits by Siemens AG.
    Accordingly, Siemens released a corresponding provision of
    38 during the fourth quarter of fiscal 2008.
    The public prosecutor in Milan, Italy is investigating
    allegations as to whether two employees of Siemens S.p.A. made
    illegal payments to employees of the state-owned gas and power
    group ENI. In November 2007, the public prosecutor filed charges
    against the two employees, Siemens S.p.A. and one of its
    subsidiaries, as well as against other individuals and companies
    not affiliated with Siemens.
    The public prosecutor in Wuppertal, Germany is conducting an
    investigation against Siemens employees regarding allegations
    that they participated in bribery related to the awarding of an
    EU contract for the refurbishment of a power plant in Serbia in
    2002.
    The Norwegian government is investigating payments made by
    Siemens for golf trips in 2003 and 2004, which were attended by
    members of the Norwegian Department of Defense, and allegations
    of bribery and overcharging of the Norwegian Department of
    Defense related to the awarding of a contract for the delivery
    of communication equipment in 2001. F-68




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
   
    The public prosecutor in Athens, Greece concluded his
    preliminary investigation relating to allegations of active and
    passive bribery of public officials, money laundering and aiding
    and abetting the foregoing, in connection with, among others, a
    telecom contract relating to the 2004 Olympic Games awarded by
    the Greek government to Siemens and purchases of telecom
    equipment by the Hellenic Telecommunications Organization SA
    (OTE) in the late 1990s. In July 2008, the prosecutor named
    several suspects, including several former Siemens employees,
    and transferred the case to an investigative Magistrates
    Court in Athens, which can issue criminal charges against
    specific individuals. Separately, preliminary investigations
    continue into allegations of bribery by Siemens of the Greek
    national railways and of the Greek Ministry of Defense and the
    Military. The Greek Ministry of Finance has also announced tax
    probes into the local operations of Siemens.
    Siemens Zrt. Hungary and certain of its employees are being
    investigated by Hungarian authorities in connection with
    allegations concerning suspicious payments in connection with
    consulting agreements with a variety of shell corporations and
    bribery relating to the awarding of a contract for the delivery
    of communication equipment to the Hungarian Armed Forces.
    The Vienna, Austria public prosecutor is conducting an
    investigation into payments between 1999 and 2006 relating to
    Siemens AG Austria and its subsidiary VAI for which valid
    consideration could not be identified.
    Authorities in Russia are conducting an investigation into
    alleged embezzlement of public funds in connection with the
    award of contracts to Siemens for the delivery of medical
    equipment to public authorities in Yekaterinburg in the years
    2003 to 2005.
    In October 2008, U.S. authorities conducted a search at the
    premises of Siemens Building Technologies Inc. in Cleveland,
    Ohio in connection with a previously ongoing investigation into
    activities with Cuyahoga County government agencies.
    There are currently numerous public corruption-related
    governmental investigations in China, involving several
    divisions of Siemens Ltd. China, primarily the former
    Med Group, but also the former Group Automation &
    Drives and Siemens IT Solutions and Services. The investigations
    have been initiated by prosecutors in several regions and
    provinces, including Guangdong, Jilin, Xian, Wuxi,
    Shanghai, Ting Hu, Shandong, Hunan, and Guiyang.
    The Argentinean Anti-Corruption Authority is conducting an
    investigation into corruption of government officials in
    connection with the awarding to Siemens in 1998 of the contract
    for the development and operation of a system for the production
    of identity cards, border control, collection of data and
    voters registers. A search was executed at the premises of
    Siemens Argentina and Siemens IT Services SA in Buenos Aires in
    August 2008. The Argentinean investigative judge also requested
    judicial assistance from the Munich prosecutor and the federal
    court in New York.
    In June 2008, the court of first instance in Kalimantan
    Province, Indonesia, found the head of the former Med Group of
    Siemens PT Indonesia not guilty of the allegations that he
    participated in bribery, fraud, and overcharging related to the
    awarding of a contract for the delivery of medical equipment to
    a hospital in 2003. The decision has been appealed by the
    prosecutor.   F-69




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Oil-for-Food Oil-for-Food
  Inter-American
      Civil
    litigation
    and/or
     F-70




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Siemens
    response
    (Arbeitsgemeinschaft Unabhängiger
    Betriebsangehöriger)
  Form 20-F
   F-71




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Antitrust
    proceedings
            (Bundeskartellamt)
   F-72




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
          Other
    proceedings
     F-73




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    and/or and/or
     F-74




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Provisions, Contingent
    Liabilities and Contingent Assets
    31. Additional
    disclosures on financial instruments
      September 30,2008


2007Financial assets:Loans and receivables


25,138



21,428Cash and cash equivalents


6,893



4,005Available-for-sale
    financial assets


703



935Derivatives with a hedging relationship


538



367Financial assets held for trading


459



57633,731



27,311Financial liabilities:Financial liabilities measured at amortized cost


26,337



25,926Financial liabilities held for trading


1,004



657Derivatives with a hedging relationship


401



26027,742



26,843  F-75




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    September 30, 2008


September 30, 2007Carrying





CarryingFair value


amount


Fair value


amountFinancial assets measured at cost or amortized costTrade and other receivables*


19,787



19,787



18,163



18,163Cash and cash equivalents


6,893



6,893



4,005



4,005Other non-derivative financial assets


5,351



5,351



3,265



3,265Available-for-sale
    financial assets**






518







655Financial liabilities measured at cost or amortized costNotes and bonds


12,069



12,966



8,897



8,889Trade payables


8,886



8,886



8,431



8,431Loans from banks and other financial indebtedness


2,820



2,879



6,287



6,322Obligations under finance leases


228



233



277



286Other non-derivative financial liabilities


1,373



1,373



1,998



1,998    *
    This caption consists of (i) short-term trade and other
    receivables (see Note 12), as well as (ii) trade
    receivables from sale of goods and services, receivables from
    finance leases and receivables from associated and not
    consolidated related Companies which are included in other
    financial assets (see Note 20).**
    This caption consists of equity instruments classified as
    available-for-sale,
    for which a fair value could not be reliably measured and which
    are recognized at cost.       F-76




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    September 30,2008


2007Financial assets measured at fair valueAvailable-for-sale
    financial assets


185



280Derivative financial instruments


997



943Without hedging relationship


331



469In connection with fair value hedges


394



176Foreign currency exchange
    derivatives


15



25Interest rate
    derivatives


379



151In connection with cash flow hedges (foreign currency
    exchange derivatives)


144



191Embedded derivatives


128



107Financial liabilities measured at fair valueDerivative financial instruments


1,405



917Without hedging relationship


860



403In connection with fair value hedges


70



103Foreign currency exchange
    derivatives


18



3Interest rate
    derivatives


52



100In connection with cash flow hedges


331



157Foreign currency exchange
    derivatives


331



155Interest rate
    derivatives






2Other embedded derivatives


144



254   available-for-sale
    Derivative interest rate contracts
  Derivative currency contracts
  Credit default swaps
   F-77




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    September 30,2008


2007Loans and receivables


(284
)


(158
)Financial assets and financial liabilities held for trading


63



60Financial liabilities measured at amortized cost


11



57Available-for-sale
    financial assets


(1
)


(66
)   available-for-sale available-for-sale Other components of equity
        Collateral
    32. Derivative
    financial instruments and hedging activities
      September 30, 2008


September 30, 2007Asset


Liability


Asset


LiabilityForeign currency exchange contracts


371



979



602



420Interest rate swaps and combined interest/currency swaps


424



168



175



239Embedded derivatives


128



144



107



254Options


65



56



19



Other


9



58



40



4997



1,405



943



917  F-78




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Foreign
    currency exchange risk management
    Derivative
    financial instruments not designated as hedges
  Financial Instruments: Recognition and Measurement Other current financial assets Other
    current financial liabilities,
  Cost of goods sold and services
    rendered
  Hedging
    activities
    Cash flow hedges Other components of equity, Other components of equity
  Other
    components of equity Cost of
    goods sold and services rendered
    Fair value hedges Cost of goods sold and
    services rendered Cost of goods sold and
    services rendered
 F-79




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Interest
    rate risk management
    Derivative
    financial instruments not designated as hedges
  Other current financial assets Other current
    financial liabilities, Financial income (expense), net. Financial
    income (expense), net
  Fair
    value hedges of fixed-rate debt obligations
  Financial income (expense), net Financial income (expense), net, Financial income (expense), net
    Fair
    value hedges of
    available-for-sale
    financial assets
  available-for-sale available-for-sale
 F-80




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  available-for-sale available-for-sale Financial income (expense), net Financial income (expense), net,
  Cash flow
    hedges of revolving term deposits
  Other components of equity; Financial income (expense), net
  33. Financial
    risk management
  Market
    risks
    value-at-risk
    
    a 20% decrease in equity prices of all investments traded in an
    active market, which are classified as current
    available-for-sale
    financial assets;
    a simultaneous, parallel foreign exchange rates shift in which
    the Euro depreciates against all currencies by 10%;
    a parallel upwards shift of 100-basis points of the interest
    rate yield curves in all currencies. F-81




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
       Equity
    price risk
        Foreign
    currency exchange rate risk
  Transaction
    risk and currency management
         F-82




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    positive negative
      September 30, 2008USD


GBP


Other


TotalGross balance sheet exposure


7,851



181



(97
)


7,934Thereof: Financial assets


15,912



2,844



6,390



25,146Thereof: Financial liabilities


(8,061
)


(2,663
)


(6,487
)


(17,212
)Gross exposure from firm commitments and anticipated transactions


4,068



586



694



5,348Foreign exchange transaction exposure


11,919



767



597



13,282Economically hedged exposure


(12,348
)


(878
)


(835
)


(14,061
)Change in future cash flows after hedging activities resulting
    from a 
    10% depreciation of the Euro


(43
)


(11
)


(24
)


(78
)   F-83




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##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  September 30, 2007*USD


GBP


Other


TotalGross balance sheet exposure


223



321



208



752Thereof: Financial assets


7,858



3,642



4,769



16,269Thereof: Financial liabilities


(7,635
)


(3,321
)


(4,561
)


(15,517
)Gross exposure from firm commitments and anticipated transactions


3,730



392



1,193



5,315Foreign exchange transaction exposure


3,952



713



1,398



6,063Economically hedged exposure


(3,893
)


(567
)


(1,132
)


(5,592
)Change in future cash flows after hedging activities resulting
    from a
    10% appreciation of the Euro


(6
)


(15
)


(27
)


(47
)     *
    Including SV  Effects
    of currency translation
    Interest
    rate risk
         F-84




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
      Liquidity
    risk
        2011 to


2014 and2009


2010


2013


thereafterNon-derivative financial liabilitiesNotes and bonds


1,631



654



6,010



9,345Loans from banks


582



95



782



1,393Other financial indebtedness


321



18



72



59Obligations under finance leases


63



29



102



94Trade payables


8,870



20



5



2Other financial liabilities


856



51



69



85Derivative financial liabilities


750



129



162



166      F-85




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  available-for-sale
  September 30,2008


2007Cash and cash equivalents


6,893



4,005Available-for-sale
    financial assets


152



193Total liquidity


7,045



4,198Short-term debt and current maturities of long-term debt


1,819



5,637Long-term debt


14,260



9,860Total debt


16,079



15,497Net liquidity(Total liquidity less Total debt)


(9,034
)


(11,299
)   available-for-sale
  Credit
    risk
           F-86




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
      Other financial assets
  34. Share-based
    payment
    I.
    Equity-settled awards
    Stock
    Option Plans
  Description
    of plans1999 Siemens Stock Option Plan
       F-87




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Description
    of plans2001 Siemens Stock Option Plan
    Share-Based Payment,
     F-88




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Year ended


Year ended


Year endedSeptember 30, 2008


September 30, 2007


September 30, 2006Weightedaverage


AggregateWeighted


Remaining


Intrinsic





Weighted





Weightedaverage


Contractual


value





average





averageexercise


Term


in millions





exercise





exerciseOptions


price


(years)


of 


Options


price


Options


priceOutstanding, beginning of period


8,606,272



72.13











26,729,148



74.67



28,611,556



71.93Granted


























3,023,830



74.59Options exercised


(2,832,839
)


69.91











(11,480,500
)


70.03



(4,215,508
)


55.71Options forfeited/expired/settled


(676,350
)


70.30











(6,642,376
)


85.98



(690,730
)


76.57Outstanding, end of period


5,097,083



73.60



1.1







8,606,272



72.13



26,729,148



74.67Exercisable, end of period


5,097,083



73.60



1.1







5,754,342



70.90



20,978,443



74.96     Options outstanding


Options exercisableWeighted


Weighted


Aggregate








Weighted


Aggregateaverage


average


Intrinsic





Weighted


average


IntrinsicNumber of


remaining


exercise


Value as of


Number of


average


exercise


Value as ofExercise

Options


life


price per


September 30,


Options


remaining life


price per


September 30,prices

outstanding


(years)


share


2008


exercisable


(years)


share


200872.54


966,950



1.1



72.54







966,950



1.1



72.54



73.25


2,289,991



0.1



73.25







2,289,991



0.1



73.25



74.59


1,840,142



2.1



74.59







1,840,142



2.1



74.59



   Fair
    value information
    Assumptions at grant date2006Risk-free interest rate


2.99%Expected dividend yield


2.41%Expected volatility


18.30%Expected option life


3.5 yrs.Estimated weighted average fair value per option


4.06Fair value of total options granted during fiscal year


11   Stock
    awards
   F-89




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
        Year ended


Year ended


Year endedSeptember 30, 2008


September 30, 2007


September 30, 2006Weighted





Weighted





Weightedaverage





average





averageGrant-Date





Grant-Date





Grant-DateAwards


Fair Value


Awards


Fair Value


Awards


Fair ValueNonvested, beginning of
    period


3,270,910



60.58



2,154,871



56.44



1,136,048



55.63Granted


737,621



97.94



1,232,893



67.70



1,076,860



57.28Vested


(79,068
)


79.03















Forfeited/settled


(439,695
)


64.50



(116,854
)


59.38



(58,037
)


56.17Nonvested, end of period


3,489,768



67.56



3,270,910



60.58



2,154,871



56.44     Employee
    share purchase program
   F-90




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  II.
    Cash-settled
    awards  Stock
    appreciation rights (SARs)
      Year ended


Year ended


Year endedSeptember 30, 2008


September 30, 2007


September 30, 2006Weighted





Weighted





Weightedaverage





average





averageexercise





exercise





exerciseSARs


price


SARs


price


SARs


priceOutstanding, beginning of period


198,280



73.63



349,900



73.47



267,720



73.05Granted


















97,270



74.59SARs exercised


(40,555
)


73.72



(106,280
)


73.06



(2,300
)


73.25SARs forfeited/settled


(19,240
)


73.79



(45,340
)


73.72



(12,790
)


73.20Outstanding, end of period


138,485
*


73.58



198,280



73.63



349,900



73.47Exercisable, end of period


138,485



73.58



123,335



73.05



181,950



73.25     *
    Thereof 23,825 SARs with a 72.54 exercise price and a
    weighted average remaining life of 1.1 years, 67,700 SARs
    with a 73.25 exercise price and a weighted average
    remaining life of 0.1 years and 46,960 SARs with a
    74.59 exercise price and a weighted average remaining life
    of 2.1 years.    Phantom
    stock
   F-91




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  35. Personnel
    costs
  Year ended September 30,2008


2007


2006Wages and salaries


21,486



18,631



18,719Statutory social welfare contributions and expenses for
    optional
    support payments


3,256



3,076



3,064Expenses relating to pension plans and employee benefits


904



818



1,00725,646



22,525



22,790   Expenses relating to pension plans and employee benefits Financial
    income (expense), net
    Year endedSeptember 30,2008


2007in thousandsManufacturing and services


260.3



237.2Sales and marketing


91.2



84.2Research and development


32.2



30.9Administration and general services


37.1



33.9420.8



386.2   36. Earnings
    per share
  Year ended September 30,2008


2007


2006(shares in thousands)Income from continuing operations


1,859



3,909



2,642Less: Portion attributable to minority interest


(155
)


(199
)


(167
)Income from continuing operations attributable to
    shareholders
    of Siemens AG


1,704



3,710



2,475Plus: Effect of assumed conversion, net of tax






26



Income from continuing operations attributable to
    shareholders
    of Siemens AG plus effect of assumed conversion


1,704



3,736



2,475Weighted average shares outstanding basic


893,166



898,135



890,850Effect of dilutive convertible debt securities and
    share-based
    payment


3,132



37,035



2,292Weighted average shares outstanding diluted


896,298



935,170



893,142Basic earnings per share (from continuing operations)


1.91



4.13



2.78Diluted earnings per share (from continuing operations)


1.90



3.99



2.77    F-92




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  37. Segment
    information
      Description
    of reportable segments
  Sectors
    Industry
  best-in-class
  Energy
    Healthcare
    Equity
    Investments
   F-93




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Asset classified as held for
    disposal
  Cross
    Sector Businesses
  Siemens IT
    Solutions and Services
    Siemens
    Financial Services (SFS)
    Reconciliation
    to consolidated financial statements
    Other Operations
  Siemens Real Estate (SRE)
  Corporate items and pensions
  Eliminations, Corporate Treasury and other reconciling items
  Measurement
    Segments
   F-94




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Profit of the Sectors, Equity Investments, and Siemens IT
    Solutions and Services:
          and/or
  Profit of
    the segment SFS:
    Asset
    measurement principles:
   F-95




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  New
    orders:
    Free cash
    flow definition:
    Amortization,
    depreciation and impairments:
  available-for-sale
  MeasurementOther
    Operations and SRE
   F-96




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Reconciliation
    to Siemens Consolidated Financial Statements
    September, 30


September, 302008


2007Assets of Sectors


26,927



23,437Assets of Equity Investments


5,587



5,009Assets of Cross-Sector Businesses


11,569



9,165Total Segment Assets


44,083



37,611Reconciliation:Assets Other Operations


(1,545
)


(704
)Assets SRE


3,489



3,091Assets of Corporate items and pensions


(6,401
)


(2,682
)Eliminations, Corporate Treasury and other reconciling items of
    Segment
    Information:Asset-based adjustments:Intragroup financing receivables and investments


26,855



10,834Tax-related assets


2,514



2,845Liability-based adjustments:Pension plans and similar commitments


4,361



2,780Liabilities


42,021



38,398Assets classified as held for disposal and associated liabilities


17



7,576Eliminations, Corporate Treasury, other items


(20,931
)


(8,194
)Total Eliminations, Corporate Treasury and other reconciling
    items of Segment
    Information


54,837



54,239Total Assets in Siemens Consolidated Balance Sheets


94,463



91,555   Corporate items
  Corporate items
  Corporate items
 F-97




---



##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    Additions tointangibleNet cash provided by


assets and(used in)


property, plant


Amortization,Free cash flow


operating activities


and equipment


depreciation(I)=(II)-(III)


(II)


(III)


and impairmentsYear ended


Year ended


Year ended


Year endedSeptember 30,


September 30,


September 30,


September 30,2008


2007


2006


2008


2007


2006


2008


2007


2006


2008


2007


2006Segment Information
    based on continuing operations


5,739



6,755



1,820



9,281



9,822



5,003



(3,542
)


(3,067
)


(3,183
)


3,01
5


2,625



2,314Discontinued Operations


(836
)


(3,178
)


(213
)


(657
)


(2,494
)


656



(179
)


(684
)


(869
)


90



968



89Impairment*






































108



158



715Siemens Consolidated Statements of
    Cash Flow


4,903



3,577



1,607



8,624



7,328



5,659



(3,721
)


(3,751
)


(4,052
)


3,213



3,751



3,118     *
    Goodwill impairment and impairment of non-current
    available-for-sale
    financial assets and investments accounted for using the equity
    method continuing operations.  38.
    Geographic
    information    Revenue by location of customer


Revenue by location of companies2008


2007


2006


2008


2007


2006Europe, C.I.S., Africa


40,795



38,180



35,347



48,107



45,337



42,086Americas


20,107



19,321



18,371



19,760



19,154



17,512Asia, Australia, Middle East


16,425



14,947



12,769



9,460



7,957



6,889Siemens


77,327



72,448



66,487



77,327



72,448



66,487thereof Germany


12,797



12,594



12,382



21,160



20,848



20,152thereof foreign countries


64,530



59,854



54,105



56,167



51,600



46,335thereof U.S.


14,847



14,832



14,609



15,610



15,744



14,515   F-98




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##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
  Non-current assetsSeptember 30,2008


2007


2006Europe, C.I.S., Africa


16,630



15,251



16,214Americas


13,796



10,710



7,675Asia, Australia, Middle East


2,249



1,714



1,257Siemens


32,675



27,675



25,146thereof Germany


7,404



6,514



8,476thereof foreign countries


25,271



21,161



16,670thereof U.S.


12,696



9,738



6,924     39. Related
    party transactions
  Joint
    ventures and associates
      Pension plans and similar commitments
      Related
    individuals
    Remuneration.
   F-99




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##### Table of Contents



SIEMENS
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS(Continued)
 (in millions of , except where otherwise stated and per
    share amounts)
    40. Remuneration
    41. Subsequent
    events
       F-100




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##### Table of Contents



PART III,
    CONTINUED
  ITEM 19:
    EXHIBITS  ExhibitNumber

Description of Exhibit1
.1

English translation of Articles of Association of Siemens
    Aktiengesellschaft updated as of October 2007 (incorporated by
    reference to Exhibit 1.1 of Siemens Annual Report on
    Form 20-F
    dated November 28, 2007)2
.1

The total amount of long-term debt securities authorized under
    any instrument does not exceed 10% of the total assets of the
    Company on a consolidated basis. We hereby agree to furnish to
    the Commission, upon its request, a copy of any instrument
    defining the rights of holders of long-term debt of Siemens
    Aktiengesellschaft or of its subsidiaries for which consolidated
    or unconsolidated financial statements are required to be filed.4
.1

Sale and Purchase Agreement dated July 25, 2007 regarding
    the sale and purchase of the Siemens VDO Automotive Group
    (incorporated by reference to Exhibit 4.1 of Siemens
    Annual Report on
    Form 20-F
    dated November 28, 2007)8
.1

List of Subsidiaries12
.1

Certification of Chief Executive Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 200212
.2

Certification of Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 200213
.1

Certification of Chief Executive Officer pursuant to 18. U.S.C.
    Section 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 200213
.2

Certification of Chief Financial Officer pursuant to 18. U.S.C.
    Section 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 200214
.1

Consent of KPMG AG Wirtschaftsprüfungsgesellschaft  III-1




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##### Table of Contents



SIGNATURES
  Form 20-F
    Siemens Aktiengesellschaft
  Peter
    L scher
     Joe
    Kaeser
     Dr. Klaus
    Patzak
    III-2