FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For May 4, 2005

Commission File Number: 1-15174

Siemens Aktiengesellschaft

Wittelsbacherplatz 2
D-80333 Munich
Federal Republic of Germany
(Address of principal executive offices)

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

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

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

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

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

This report is incorporated by reference into the prospectuses contained in
Registration Statements Nos. 333-13428 and 333-14294 on Form S-8
filed by the registrant under the Securities Act of 1933.

INTRODUCTION

     We prepare the Interim Report as an update of our Annual Report, with a focus on the current reporting period. As such, the Interim Report should be read in conjunction with the Annual Report, which includes detailed analysis of our operations and activities.

table of contents

Key figures ⁽¹⁾

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Management’s discussion and analysis

Overview of financial results for the second quarter of fiscal 2005

     For the second quarter of fiscal 2005, ended March 31, 2005, Siemens reported net income of €781 million and basic and diluted earnings per share of €0.88 and €0.84, respectively. In the second quarter a year earlier, net income was €1.210 billion and basic and diluted earnings per share were €1.36 and €1.30, respectively. Prior-year net income included a €590 million pre-tax gain from the sale of Infineon Technologies AG (Infineon) shares plus a related €246 million reversal of deferred tax liabilities, partially offset by a €433 million goodwill impairment. Excluding the €403 million net benefit of these effects, the prior-year result would have been €807 million.

     Within our Operations Groups, top earnings performers included Automation and Drives (A&D), Power Generation (PG), Medical Solutions (Med), Siemens VDO Automotive (SV), Osram and Power Transmission and Distribution (PTD). Transportation Systems (TS) was in the black. Communications (Com) posted a loss, primarily due to its Mobile Devices business, while the negative result at Siemens Business Services (SBS) included significant charges arising from strategic reorientation measures.

     For Siemens in the second quarter, operating and investing activities used net cash of €193 million, compared to €3.565 billion in net cash provided in the prior year. Operations used €490 million in net cash from operating and investing activities in the second quarter, including a build-up of net working capital and higher capital expenditures. In the second quarter a year earlier, net cash provided of €2.719 billion included net proceeds of €1.794 billion from the sale of Infineon shares. The other two components of Siemens, consisting of Financing and Real Estate and Corporate Treasury activities, provided net cash of €297 million in the second quarter, compared to net cash provided of €846 million in the same period a year earlier.

Results of Siemens

Results of Siemens – Second quarter of fiscal 2005 compared to second quarter of fiscal 2004

     The following discussion presents selected information for Siemens for the second quarter ended:

     Second-quarter orders increased 5%, to €20.674 billion, and sales were up 4% year-over-year, to €18.563 billion. Excluding currency translation effects and the net effect of acquisitions and dispositions, orders and sales increased 1% compared to the second quarter a year earlier. International orders were up 5% year-over-year, compared to 3% growth in Germany. Within international orders, the primary growth driver was Asia-Pacific with a 16% rise. International sales rose 8%, compared to a 7% decline in Germany. Within international sales, growth in the Americas and Asia-Pacific regions outpaced growth in Europe.

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     Gross profit margin was 28.9% in the second-quarter, up from 28.6% a year earlier. A majority of the Groups in Operations achieved a gross profit improvement year-over-year, led by TS, which rebounded from a substantial loss due to charges in its rolling stock business in the prior year. Gross profit declined at Com and SBS. The decline at Com was due primarily to its Mobile Devices business, while SBS was impacted by operational issues and restructuring measures.

     Research and development expenses were 7.2% of sales, compared to 7.0% in the second quarter a year ago, while marketing, selling and general administrative expenses moved lower as a percent of sales, to 17.9% of sales from 18.1% in the prior-year period. Other operating income (expense), net was a negative €23 million in the second quarter, compared to negative €423 million a year earlier. The prior-year period included a goodwill impairment of €433 million related to Logistics and Assembly Systems (L&A). Income from investments in other companies, net was €212 million, compared to €777 million in the same period a year earlier, which included a €590 million pre-tax gain from the sale of Infineon shares.

     The effective tax rate on income in the second quarter of fiscal 2005 was 17%, compared to a positive 7% in the prior-year period. The second quarter of fiscal 2004 period included the reversal of €246 million in deferred tax liabilities mentioned above, resulting as a consequence of the Infineon sale.

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Results of Siemens – First six months of fiscal 2005 compared to first six months of fiscal 2004

     The following discussion presents selected information for Siemens for the six months ended:

     Orders increased 5%, to €42.211 billion, primarily on growing demand in the Americas and Asia-Pacific. Sales in the first six months of fiscal 2005 were €36.730 billion, a 2% increase from the prior-year period. Excluding the net effects of acquisitions and dispositions and currency translation effects, orders were up 3% and sales remained stable year-over-year.

     International sales rose 4%, to €28.653 billion, and orders increased 6%, to €33.628 billion. In contrast, sales in Germany declined 6% year-over-year, to €8.077 billion, while acquisitions between the periods under review kept orders in Germany level with the prior year, at €8.583 billion. In Europe outside Germany, sales declined 2%, to €12.336 billion, and orders slid 3%, to €14.064 billion. The weakness in European markets was more than offset by growth in the Americas and Asian-Pacific regions. Within the Americas, sales in the U.S. in the first half increased 10%, to €6.806 billion, and orders climbed 12%, to €7.357 billion, as organic growth and acquisitions combined to more than offset negative currency translation effects. Sales in Asia-Pacific increased 3%, to €4.436 billion, while orders climbed 22%, to €5.902 billion. Within Asia-Pacific, first-half sales in China were down 3%, at €1.276 billion. Orders in China surged to €2.120 billion, up 39% year-over-year, including major orders at TS, L&A, PG and PTD.

     Gross profit as a percentage of sales in the first half of fiscal 2005 increased to 29.9% from 29.2% a year earlier. A majority of the Groups in Operations achieved a gross profit improvement year-over-year, led by TS, I&S, A&D and SV. Gross profit at TS in the first half a year earlier included substantial charges in the Group’s rolling stock business. A&D improved gross profit through further increases in productivity and capacity utilization, while I&S and SV benefited from acquisitions. Gross profit declined at Com due primarily to Mobile Devices, while SBS was impacted by operational issues and restructuring measures.

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     Research and development expenses increased slightly to 7.0% of sales, from 6.9% in the first half of fiscal 2004. Marketing, selling and general administrative expenses rose to 18.6% of sales, compared to 18.2% in the prior-year period. The increase is primarily due to higher expenses at Com and SBS, and also I&S, mainly attributable to the USFilter acquisition. Other operating income (expense), net was a negative €6 million in the current period, up from a negative €324 million a year earlier. The prior-year period included a €433 million goodwill impairment in the second quarter and gains from dispositions, particularly at Med. Income from investments in other companies, net was €356 million, compared to €882 million in the first six months a year earlier, which included the pre-tax gain of €590 million from the sale of Infineon shares. Income (expense) from financial assets and marketable securities, net was €336 million, due primarily to a gain of €208 million on the sale of shares in Juniper Networks, Inc. (Juniper) at Com in the first quarter of fiscal 2005. Income (expense) from financial assets and marketable securities, net in the first half of fiscal 2004 was €75 million.

     The effective tax rate on income in the first half of fiscal 2005 was 21%, compared to 10% in the first half a year earlier. The prior-year period benefited from the reversal in deferred tax liabilities related to Infineon mentioned above.

Acquisitions

     During the second quarter, Siemens initiated or pursued a number of acquisitions which did not close during the quarter. Siemens’ second-quarter tender offer for all issued and outstanding shares of CTI Molecular Imaging, Inc. (CTI) of the U.S. was extended until May 4, 2005, and we intend to acquire any remaining shares in a merger. The acquisition of CTI, valued at approximately $1 billion (€771 million), has passed regulatory review and we expect it to close in the third quarter of fiscal 2005. CTI will be integrated into Med. For additional information see “Note 16 to Consolidated Financial Statements.”

     In the second quarter of fiscal 2005, Siemens entered into an agreement to acquire all of the outstanding shares of Flender Holding GmbH (Flender), Germany, a supplier of gear systems for a preliminary purchase price of €701 million net of debt assumed. The transaction is subject to regulatory approval. A regulatory decision is expected in June or July 2005. Flender will be integrated into A&D.

     The Company currently holds an equity interest of approximately 16.45% in the Austrian engineering group VA Technologie AG (VA Tech). In the six months ended March 31, 2005, the Company made a tender offer conditional on acquiring a minimum of 90% of total shares outstanding of VA Tech at a price of €65 per share. As of the end of the second quarter of fiscal 2005, the tender offer was accepted to an extent which would result in a total equity interest of 97.15% in VA Tech. The transaction is subject to regulatory approval and is expected to close in July 2005. Subject to such regulatory approval, the transaction will result in payments of approximately €879 million.

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Segment information analysis

Operations

Information and Communications

Communications (Com)*

     Com posted a loss of €19 million in the second quarter, due primarily to the Mobile devices business, which had a loss of €138 million (prior year: positive €13 million). Second-quarter sales were €4.000 billion and orders were €4.084 billion, compared to €4.196 billion and €4.402 billion, respectively, a year earlier. Revenue growth in the Mobile Networks and Fixed Networks businesses was more than offset by lower demand at Mobile Devices, where handset volume of 9.3 million units (prior year: 12.8 million) generated sales of €842 million (prior year: €1.243 billion).

     In the first half of fiscal 2005, Com’s Group profit of €221 million included a gain of €208 million from sales of a portion of its shares in Juniper. Losses at Mobile Devices totaled €280 million in the first half-year compared to a profit of €77 million in the prior-year period. The negative result at Mobile Devices stemmed from a decrease in handset volume, which fell to 22.8 million units in the first six months from 28.0 million in the same period a year earlier. This reduced first-half sales at Mobile Devices to €2.011 billion compared to €2.729 billion in the prior year, and also led to a decline for Com overall despite growth in the Mobile Networks and Fixed Networks businesses. Com’s sales for the first half totaled €8.243 billion, down 6% year-over-year, and orders came to €8.754 billion, 5% lower than in the prior-year period. Going forward, the Mobile Devices (MD) and Customer Premise Equipment (CPE) divisions will be reorganized as separate legal units.

Siemens Business Services (SBS)

     A loss of €129 million at SBS in the second quarter included €63 million in charges for capacity adjustments and disposal of its Sinitec business, arising from implementation of ongoing restructuring measures. Long-term outsourcing contracts, partly involving acquisitions, pushed sales up 15%, to €1.284 billion, and orders up 16%, to €1.549 billion.

6

     For the first six months, the loss at SBS totaled €154 million compared to Group profit of €70 million a year earlier, due to operational issues and restructuring measures, including severance charges, taken to address them. The 9% rise in sales year-over-year, to €2.540 billion, includes a number of new outsourcing contracts with customers such as the British broadcaster BBC. Although SBS won a significant volume of new orders in Europe in the first half of fiscal 2004, first-half orders for fiscal 2005 were still 24% higher primarily due to long-term outsourcing contracts, partly involving acquisitions.

Automation and Control

Automation and Drives (A&D)

     A&D again led all Groups with €277 million in second-quarter Group profit. Further increases in productivity and capacity utilization improved A&D’s earnings margin more than a full point, to 12.3%. Sales rose 7% to €2.258 billion, including double-digit growth in the Americas and Asia-Pacific regions. Order growth for the quarter was broad-based, rising 8% year-over-year to €2.352 billion.

     For the first six months of fiscal 2005, A&D’s Group profit was €539 million, up 18% from the prior-year level due to higher sales and productivity improvements. First-half sales rose 6%, to €4.415 billion, and orders climbed 9%, to €4.785 billion, as A&D continued its rapid growth in Asia-Pacific and steady expansion in Europe and the Americas.

Industrial Solutions and Services (I&S)

     Second-quarter sales and orders at I&S rose 19% year-over-year, to €1.169 billion and €1.291 billion, respectively, reflecting the Group’s USFilter acquisition between the periods under review. Second-quarter Group profit of €41 million also benefited from the acquisition.

     For the first six months, the Group offset weak demand in Germany with international growth, particularly including the USFilter acquisition between the periods under review. Organic growth was also strong year-over-year, enabling I&S to increase first-half sales 19%, to €2.352 billion, and boost orders 25%, to €2.757 billion. Group profit for the first six months was €61 million at I&S compared to Group profit of €41 million, benefiting from higher sales.

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Logistics and Assembly Systems (L&A)

     L&A recorded Group profit of €7 million in the second quarter on broad-based earnings improvement. For comparison, the loss in the prior-year period was burdened by charges related to excess capacity and project cost overruns. Second-quarter sales rose 7%, to €536 million, while orders climbed 14%, to €866 million, including large contracts in Europe and Asia-Pacific.

     For the first six months, Group profit of €45 million benefited from net positive effects from foreign exchange derivatives not qualifying for hedge accounting. In contrast, L&A’s loss of €67 million a year earlier was driven by contract charges plus the excess capacity and cost overrun charges mentioned above. Sales for the first half-year reached €1.115 billion, up 7% year-over-year. While orders came in well above sales, at €1.458 billion, they were still below orders in the first half a year earlier, when L&A won major new contracts with the U.S. Postal Service and in the Middle East.

Siemens Building Technologies (SBT)

     Second-quarter Group profit at SBT rose to €22 million from €16 million a year earlier, reflecting improvement in the Group’s cost position. Sales of €1.030 billion were up 3% from the prior-year level, while orders rose 10% to €1.128 billion on strong demand in the Security Systems division.

     For the first six months of fiscal 2005, SBT posted Group profit of €71 million, benefiting from improved cost position and a gain in the first quarter on the sale of an investment. Sales were level with the prior-year period, at €2.040 billion and orders for the first half rose to €2.216 billion, up 4% from the first half a year earlier.

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Power

Power Generation (PG)

     PG generated Group profit of €257 million in the second quarter, including a positive contribution from equity investment income. Group profit in the prior-year period benefited from the release of accruals associated with project completion. Second-quarter sales of €2.024 billion included services growth and the acquisition of the Group’s Wind Power business between the periods under review. Two major contracts in Spain, for components and service, fueled the increase in second-quarter orders, which reached €2.515 billion.

     Group profit for the first half at PG was €471 million compared to €519 million in the same period a year earlier. While the current period included higher cancellation gains and equity investment income, earnings in the prior-year period benefited from the release of accruals associated with project completion. First-half sales were nearly unchanged compared to the prior year, at €3.602 billion. Orders of €5.000 billion in the first half, including the first large order for the Group’s newly acquired Wind Power division, came within 2% of the prior-year level.

Power Transmission and Distribution (PTD)

     Second-quarter orders climbed 36%, to €1.229 billion, on a broad-based increase in new business including large orders in China and the Middle East. Sales of €890 million, up 12% year-over-year, benefited from the Group’s acquisition of Trench Electric Holding between the periods under review. Second-quarter Group profit at PTD was €61 million compared to €63 million a year earlier.

     PTD kept its first-half Group profit nearly level year-over-year. The Trench acquisition mentioned above accounted for most of the 7% rise in first-half sales, which reached €1.724 billion compared to €1.613 billion a year earlier. In contrast, broad-based organic growth drove the 20% increase in first-half orders, which reached €2.322 billion.

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Transportation

Transportation Systems (TS)

     TS posted second-quarter Group profit of €4 million compared to a loss of €289 million in the prior-year period, when technical issues in the Group’s rolling stock business required TS to take substantial charges. Sales of €940 million came in below prior-year levels. Orders were €1.011 billion, as growth in Asia-Pacific only partially offset lower orders in Europe.

     Group profit was €24 million at TS in the first half, compared to a loss of €257 million in the prior year period, which included significantly higher charges for the Group’s rolling stock business. First-half sales came in below the prior-year level, at €1.954 billion, largely due to lower investment in rail infrastructure in Germany. New business in Asia-Pacific, particularly in China, pushed first-half orders up 5% year-over-year, to €2.241 billion.

Siemens VDO Automotive (SV)

     SV’s second-quarter sales and orders were €2.348 billion and €2.343 billion, respectively. As demand softened on an industry-wide basis, volume growth year-over-year was driven by acquisitions between the periods under review, including an automotive electronics unit in the U.S. With a larger revenue base and more favorable revenue mix, SV was able to increase Group profit to €160 million from €128 million in the same period a year earlier.

     Group profit for the first six months was €304 million, up from €228 million a year earlier, as SV increased its earnings margin on an improved revenue mix. Sales and orders of €4.633 billion and €4.637 billion, respectively, were higher than in the first half a year earlier due primarily to the acquisitions mentioned above.

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Medical

Medical Solutions (Med)

     In the second quarter, Med contributed €218 million in Group profit in the highly competitive market for medical solutions. On the strength of its core diagnostic imaging businesses, Med increased second-quarter sales to €1.774 billion, up 4% year-over year, and took in orders of €1.923 billion, 11% higher than in the second quarter a year earlier. Excluding currency translation effects, growth in sales and orders was even stronger.

     Med delivered €433 million in Group profit in the first half. In contrast, Group profit of €555 million in the first half a year earlier included €116 million from portfolio transactions in the first quarter. Sales were up 2% year-over-year, at €3.430 billion, and orders grew 9%, to €3.953 billion. Excluding currency translation effects, sales grew 6% and orders climbed 13%.

Lighting

Osram

     Osram increased Group profit to €117 million in the second quarter, on the strength of higher-margin new products and tight cost control. These factors enabled the Group to improve its second-quarter earnings margin year-over-year despite softening demand that held Osram’s sales at €1.057 billion, level with the prior-year period excluding negative currency translation effects.

     In the first six months, Osram’s focus on margins in a flat market enabled the Group to increase Group profit 5% year-over-year despite slightly lower sales. Sales and orders were €2.140 billion for the first six months and, excluding currency translation effects, were up 2% year-over-year.

Other Operations

     Other Operations consist of centrally held equity investments and other operating businesses not related to a Group. These activities resulted in €82 million in Group profit in the second quarter, compared to €137 million in the same period a year earlier. The decline was driven by lower equity earnings from joint ventures, particularly at BSH Bosch und Siemens Hausgeräte GmbH. The trend was the same for the first half of fiscal 2005, with lower equity earnings resulting in Group profit from Other Operations of €166 million compared to €178 million in the first six months a year earlier.

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Corporate items, pensions and eliminations

     Corporate items, pensions and eliminations were a negative €290 million in the second quarter, compared to a negative €108 million in the same period a year earlier. The difference is due primarily to effects in the second quarter a year earlier, when a centrally taken goodwill impairment of €433 million related to L&A was more than offset by a pre-tax gain of €590 million on the sale of shares in Infineon. Higher expenses for corporate items in the current period were partially offset by a decrease in centrally carried pension expense year-over-year. For further information regarding the goodwill impairment, see Note 6 to Consolidated Financial Statements.

     For the first half, Corporate items, pensions and eliminations were a negative €561 million compared to a negative €465 million in the first half of fiscal 2004. The prior-year factors noted above also contributed to the change for the six-month period. In addition, lower centrally carried pension expense was partially offset by higher expenses for corporate items in the current six-month period.

Financing and Real Estate

Siemens Financial Services (SFS)

     Income before income taxes at SFS was €90 million, up from €66 million in the second quarter a year earlier, due primarily to a special dividend related to an investment held by the Equity division.

     For the first six months, income before income taxes at SFS rose on higher income in the Equity division, which included a gain on the sale of an investment and the special dividend mentioned above, as well as improved earnings in the Equipment and Sales Financing division. Assets rose slightly compared to the end of fiscal 2004 despite negative currency translation effects.

Siemens Real Estate (SRE)

     Income before income taxes at SRE was €34 million compared to €45 million in the second quarter a year earlier, largely due to lower income from rental activities and property disposals in the weak domestic commercial real estate market. The same factors influenced income before income taxes at SRE for the first six months, which came in lower than in the same period a year earlier.

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Eliminations, reclassifications and Corporate Treasury

     Income before income taxes from Eliminations, reclassifications and Corporate Treasury activities was €77 million in the second quarter of fiscal 2005, compared to €128 million in the same period a year earlier. The difference was primarily due to lower income from derivatives not qualifying for hedge accounting.

     In contrast, income before income taxes from Eliminations, reclassifications and Corporate Treasury activities in the first six months was €181 million, up from €126 million in the same period a year ago. The half-year period benefited from significantly higher income from derivatives not qualifying for hedge accounting, particularly related to management of interest-rate risk in the first quarter of fiscal 2005.

Liquidity, capital resources and capital requirements

Cash flow – First six months of fiscal 2005 compared to first six months of fiscal 2004

     Net cash used in operating activities for Siemens in the first six months of fiscal 2005 was €684 million, compared to net cash provided of €1.578 billion in the first six months a year earlier. Within Operations, net working capital used cash of €2.111 billion, compared to cash used of €1.037 billion in the first half a year earlier. Increased cash outflows stemmed primarily from increases in inventory at PG and TS, due to lower advance payments for projects, and from a decrease in accounts payable at Com. Siemens made supplemental cash contributions to its pension plans in both years, totaling €1.496 billion in the first half of fiscal 2005 and €1.255 billion in the first half of fiscal 2004. Corporate Treasury and Financing and Real Estate activities also contributed to the difference in net cash used in operating activities between the two periods under review. While proceeds from intracompany hedging activities in the first half were lower year-over-year, the first half a year earlier benefited from €247 million in repayment of a vendor note held by SFS related to the earlier disposal of various businesses.

     Net cash used in investing activities for Siemens in the first six months of fiscal 2005 was €1.814 billion, compared to net cash provided of €796 million a year earlier. The change is due primarily to €1.794 billion in net proceeds from the sale of Infineon shares in the prior year, far higher than proceeds from Com’s sale of a portion of its shares in Juniper in the first half of the current fiscal year. Other factors that contributed to higher cash outflows from investing activities include acquisitions, particularly Bonus Energy A/S at PG, and expenditures for intangible assets and property, plant and equipment, including a build-up of primarily leasing assets at SFS.

     Net cash used in financing activities in the first six months of fiscal 2005 was €586 million, compared to cash used of €1.201 billion in the prior-year period. The current period includes net proceeds from the issuance of short-term debt in the first quarter. Dividends paid to shareholders increased in the current period to €1.112 billion, up from €978 million in the first half a year earlier.

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Pension plan funding

     At the end of the first six months of fiscal 2005, the combined funding status of Siemens’ principal pension plans showed an underfunding of €1.1 billion, compared to an underfunding of €3.1 billion at the end of fiscal 2004. The improvement was due primarily to both supplemental and regular contributions as well as a higher than expected actual return on plan assets.

     The fair value of plan assets of Siemens’ principal funded pension plans on March 31, 2005 was €19.9 billion, compared to €17.7 billion on September 30, 2004.

     Siemens’ supplemental pension contributions in the first half of fiscal 2005 included €1.380 billion in cash for domestic pension plans and €116 million for pension plans in the U.S. Regular employer contributions amounted to €315 million, up from €307 million in the first six months of fiscal 2004. Supplemental contributions in the prior year amounted to €1.255 billion in cash, and were also made during the first six months.

     During the first six months of fiscal 2005, the total actual return on plan assets of Siemens’ principal funded pension plans worldwide amounted to €936 million, representing a 10.1% return on an annualized basis, compared to the expected annual return of 6.7%.

     The estimated projected benefit obligation (PBO) amounted to €21.0 billion on March 31, 2005, an increase of approximately €200 million compared to the PBO of €20.8 billion on September 30, 2004, due to the net of pension service and interest costs less benefits paid during the six-month period, and currency translation effects.

     For more information on Siemens’ pension plans, see “Notes to Consolidated Financial Statements.”

Capital resources and capital requirements

     At the Annual Shareholders’ Meeting on January 27, 2005, our shareholders gave authorization to repurchase up to 10% of the Siemens’ €2.673 billion common stock until July 26, 2006. Such stock may be sold via a stock exchange; or (i) retired with the approval of the Supervisory Board, (ii) used to satisfy the Company’s obligations under the 1999 and the 2001 Siemens Stock Option Plans, (iii) offered for purchase by employees or former employees of the Company; and (iv) used to service the conversion or option rights granted by the Company in connection with the issuance of bonds. In addition, the Supervisory Board shall be authorized to transfer treasury stock repurchased by the Company to members of the Managing Board of Siemens AG as stock-based compensation with a blocking period of at least two years. For further information with respect to the repurchase of shares for purchase by employees see “Notes to the Consolidated Financial Statements.”

     In March 2005, we renewed our U.S.$3.0 billion multi-currency revolving credit facility and increased it to a U.S.$5.0 billion syndicated multi-currency revolving loan credit facility expiring March 2012 provided by a syndicate of international banks. Borrowings under this credit facility bear interest of 0.15% above either EURIBOR (Euro Interbank Offered Rate) in case of a draw down in euros, or LIBOR (London Interbank Offered Rate) in case of a draw down in the other currencies agreed on. As of March 31, 2005, the full amount of this line of credit remains unused. This credit facility does not contain a material adverse change clause.

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EVA performance

     Siemens ties a portion of its executive incentive compensation to achieving economic value added (EVA) targets. EVA measures the profitability of a business (using Group profit for the Operations Groups and income before income taxes for the Financing and Real Estate businesses as a base) against the additional cost of capital used to run a business (using Net capital employed for the Operations Groups and risk-adjusted equity for the Financing and Real Estate businesses as a base). A positive EVA means that a business has earned more than its cost of capital, whereas a negative EVA means that a business has earned less than its cost of capital. Depending on the EVA development year-over-year, a business is defined as value-creating or value-destroying. Other companies that use EVA may define and calculate EVA differently.

     Beginning in fiscal 2005, Siemens adjusted its calculation of EVA, in particular the weighted average cost of capital for our Operations Groups, to better correspond to the current operating environment. On a consistent calculation basis, EVA in the first half of fiscal 2005 was positive but below the level a year earlier. Excluding Infineon and the goodwill impairment mentioned above, EVA improved compared to the prior year.

     This interim report contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect its operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise from, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products or technologies by other companies, lack of acceptance of new products or services by customers targeted by Siemens, changes in business strategy and various other factors. More detailed information about certain of these factors is contained in Siemens’ filings with the SEC, which are available on the Siemens website, www.siemens.com, and on the SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as anticipated, believed, estimated, expected, intended, planned or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated. Throughout this interim report, whenever reference is made to our Company’s website, such reference does not incorporate information from the website by reference into this interim report.

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SIEMENS AG

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the three months ended March 31, 2005 and 2004
(in millions of €, per share amounts in €)

The accompanying notes are an integral part of these consolidated financial statements.

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SIEMENS AG

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the six months ended March 31, 2005 and 2004
(in millions of €, per share amounts in €)