UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

Report of Foreign Private Issuer

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

Commission File Number: 1-15174

Siemens Aktiengesellschaft

(Translation of registrant’s name into English)

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.

Form 20-F þ      Form 40-F o

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):

Yes o      No þ

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):

Yes o      No þ

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.

Yes o      No þ

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

 

 

introduction

     We prepare the Interim Report as an update of our Annual Report, with a focus on the current 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	2
Management’s discussion and analysis	3
Consolidated Financial Statements	21
Notes	30
Quarterly summary	42
Supervisory Board and Managing Board changes	43
Financial calendar	44

						3rd quarter (2)								first nine months (3)
							2006				2005				2006				2005
Income from continuing operations							804				618				2,520				2,561
(in millions of euros)
Loss from discontinued operations, net of income taxes							(12	)			(229	)			(28	)			(390	)
(in millions of euros)
Net income							792				389				2,492				2,171
(in millions of euros)
Earnings per share from continuing operations (4)							0.90				0.69				2.83				2.88
(in euros)
Loss per share from discontinued operations (4)							(0.01	)			(0.25	)			(0.03	)			(0.44	)
(in euros)
Earnings per share (4)							0.89				0.44				2.80				2.44
(in euros)
Net cash from operating and investing activities (5)							1,768				(284	)			1,349				(2,148	)
(in millions of euros)
therein:		Net cash provided by operating activities					1,530				1,366				2,637				1,273
		Net cash provided by (used in) investing activities					238				(1,650	)			(1,288	)			(3,421	)
New orders (5)							22,442				19,764				73,643				60,195
(in millions of euros)
Sales (5)							21,173				18,583				63,402				53,339
(in millions of euros)

		June 30, 2006				September 30, 2005
Employees (5) (in thousands)			475				461
Germany			162				165
International			313				296

(1)		Unaudited, focused on continuing operations. (Discontinued operations consist of discontinued mobile devices activities).
(2)		April 1 — June 30, 2006 and 2005, respectively.
(3)		October 1, 2005 and 2004 — June 30, 2006 and 2005, respectively.
(4)		Earnings per share — basic.
(5)		Continuing operations.

Management’s discussion and analysis

Overview of financial results for the third quarter of fiscal 2006

	•		Net income was €792 million and earnings per share were €0.89, both more than double the level in the third quarter a year earlier. Income on a continuing basis was €804 million, up 30% compared to the prior-year period.
	•		Orders and sales each rose 14%, to €22.442 billion and €21.173 billion, respectively.
	•		On a continuing basis, net cash from operating and investing activities was €1.768 billion, including €1.127 billion in net proceeds from the sale of Siemens’ remaining shares in Infineon Technologies AG. For comparison, operating and investing activities in the third quarter a year earlier used net cash of €284 million, including €731 million in net cash used to acquire CTI Molecular Imaging, Inc.

     We believe that the third quarter continued the overall momentum of Siemens, with higher income, sales and orders compared to a year earlier. It was a particularly successful quarter in terms of reshaping the company’s business portfolio. In addition to announcing a new joint venture for the company’s carrier communications business with an outstanding partner in Nokia Corporation (Nokia), the company also initiated strategic acquisitions that would make Siemens an important player in clinical diagnostics, one of the most dynamic sectors of medicine.

     For the third quarter of fiscal 2006, ended June 30, 2006, Siemens reported net income of €792 million, up 104% compared to €389 million in the same period a year earlier. Basic and diluted earnings per share rose to €0.89 and €0.85, respectively, from €0.44 and €0.42 in the third quarter a year earlier. Discontinued operations lost €12 million in the third quarter, compared to a loss of €229 million in the same period a year earlier. Income from continuing operations in the third quarter was €804 million, a 30% increase from €618 million a year earlier. Basic and diluted earnings per share from continuing operations were €0.90 and €0.86, respectively. A year earlier, basic and diluted earnings per share from continuing operations in the third quarter were €0.69 and €0.67, respectively.

     A majority of the Groups in Operations posted higher earnings year-over-year. Major earnings contributions came from Automation and Drives (A&D), Medical Solutions (Med), Power Generation (PG), Siemens VDO Automotive (SV), Power Transmission and Distribution (PTD), and Osram. Severance charges at Communications (Com) and Siemens Business Services (SBS) totaled €69 million, somewhat more than in the prior-year period but less than the level expected for the fourth quarter of fiscal 2006. Corporate items benefited from the sale of Infineon shares mentioned above, which resulted in a €33 million gain.

     Income before income taxes from the other two components of Siemens worldwide, Financing and Real Estate and Corporate Treasury, rose to €185 million from €162 million in the third quarter a year earlier.

     Third-quarter orders of €22.442 billion were up 14% compared to the third quarter a year earlier, led by strong order growth at A&D, Transportation Systems (TS) and PTD. Sales increased 14% as well, to €21.173 billion. International markets were the primary source of top-line growth, as sales in Germany edged up 1% and orders in Germany declined 2% compared to the prior-year level. Currency translation effects in the quarter were negligible. Organic growth in the third quarter included a 9% rise in orders and a 7% increase in sales for Siemens overall, despite declines in Germany of 4% in orders and 1% in sales. Portfolio effects included divestment of the Product Related Services (PRS) business at SBS at the beginning of the current quarter, and a number of major acquisitions in the fourth quarter of the prior year including VA Technologie AG (VA Tech). Beginning with the fourth quarter, these acquisitions will contribute to sales and orders on an organic basis rather than as new volume, with a corresponding effect on reported growth rates.

     On a continuing basis, net cash provided from operating and investing activities within Operations in the third quarter was €1.510 billion compared to €101 million provided in the prior-year period. The current period included €1.127 billion in net proceeds from the Infineon share sale, while the prior-year period included €731 million used to acquire CTI Molecular Imaging, Inc. (CTI). Cash payments for severance at Com and SBS were higher in the current period, totaling €81 million compared to €24 million in the prior-year period. Both periods included significant cash used for inventories and capital expenditures associated with business growth. Within

Financing and Real Estate and Corporate Treasury activities, net cash from operating and investing activities in the third quarter was €258 million compared to a negative €385 million a year earlier. For Siemens on a continuing basis, net cash from operating and investing activities in the third quarter was €1.768 billion compared to a negative €284 million a year earlier.

Results of Siemens

Results of Siemens – Third quarter of fiscal 2006 compared to third quarter of fiscal 2005

     The following discussion presents selected information for Siemens for the third quarter:

		June 30,
(€ in millions)		2006				2005
New orders			22,442				19,764
New orders in Germany			3,717				3,791
New international orders			18,725				15,973
Sales			21,173				18,583
Sales in Germany			3,797				3,759
International sales			17,376				14,824

     Third-quarter orders increased 14% year-over-year, to €22.442 billion, led by strong order growth at A&D, TS, and PTD. Sales were up to €21.173 billion, which also represents a 14% increase compared to the third quarter a year earlier. On aggregate, currency translation effects in the quarter were negligible. Excluding the net effect of acquisitions and dispositions, third-quarter orders rose 9% and sales were up 7% year-over-year. International markets were the primary source of growth, as orders in Germany declined 2% year-over-year, to €3.717 billion, while sales edged up 1%, to €3.797 billion. International orders and sales were each up 17% compared to the prior-year period, at €18.725 billion and €17.376 billion, respectively.

     Within international growth in the third quarter, Asia-Pacific posted orders of €3.399 billion, a 22% increase, and sales rose 30% year-over-year, to €3.199 billion. Within Asia-Pacific, orders in China increased 15%, to €1.111 billion, while sales in China climbed 41%, to €1.126 billion. In Europe outside Germany, orders increased 19%, to €6.699 billion, mainly on organic growth. Sales in Europe outside Germany rose 9% year-over-year, to €6.463 billion, on the strength of acquisitions. Growth in the Americas was robust, with the region as a whole generating order and sales growth of 12% and 15%, respectively. Orders strongly benefited from portfolio effects, while sales grew on a balance of both organic growth and portfolio effects. Within the Americas, the U.S. posted orders of €4.712 billion, an increase of 21%, and sales of €4.518 billion were 22% higher than in the prior-year period.

		June 30,
(€ in millions)		2006				2005
Gross profit on sales			5,927				5,300
as percentage of sales			28.0	%			28.5	%

     Gross profit increased 12% year-over-year, due to a significant increase in sales compared to the prior-year period. Gross profit as a percentage of sales for the third quarter came in lower, at 28.0% compared to 28.5% a year earlier. This is partly due to a changed sales mix at a number of Groups, including A&D and PG.

		June 30,
(€ in millions)		2006				2005
Research and development expenses			(1,408	)			(1,251	)
as percentage of sales			6.6	%			6.7	%
Marketing, selling and general administrative expenses			(3,617	)			(3,374	)
as percentage of sales			17.1	%			18.2	%
Other operating income, net			4				44
Income from investments in other companies, net			109				78
Income (expense) from financial assets and marketable securities, net			67				(27	)
Interest income (expense) of Operations, net			(12	)			2
Other interest income, net			58				65

     Research and development (R&D) expenses increased to €1.408 billion from €1.251 billion a year earlier, including higher outlays at SV. Due to the significant increase in sales year-over-year, R&D nevertheless declined to 6.6% of sales from 6.7% in the prior-year quarter. Marketing, selling and general administrative expenses also increased but declined as a percentage of sales, from 18.2% to 17.1%, due to significantly higher sales year-over-year. Income from investment in other companies, net, increased to €109 million from €78 million in the prior-year period, primarily due to higher equity earnings from a major joint venture. Income from financial assets and marketable securities, net of €67 million benefited from a €33 million gain from sale of Infineon shares and positive effects from derivative activities not qualifying for hedge accounting at Corporate Treasury. A year earlier, income from financial assets and marketable securities, net was a negative €27 million.

		June 30,
(€ in millions)		2006				2005
Income from continuing operations before income taxes			1,128				837
Income taxes			(276	)			(186	)
as percentage of income from continuing operations before income taxes			24	%			22	%
Minority interest			(48	)			(33	)
Income from continuing operations			804				618
Loss from discontinued operations, net of income taxes			(12	)			(229	)
Net income			792				389

     In the third quarter, income from continuing operations was €804 million compared to €618 million in the same period a year earlier. While severance charges at Com and SBS were higher at €69 million compared to €58 million a year earlier, strong sales growth generated significantly higher gross profit compared to the third quarter a year earlier. Dominated by domestic tax free income, income taxes on Siemens’ income from continuing operations were 24% in the third quarter of fiscal 2006, up from 22% in the same period a year earlier. In the prior year period our income tax rate benefited from a reorganization of certain businesses in the U.S. generating previously unrecognized tax deductions. Discontinued operations consist solely of activities related to the previously divested mobile phone business. Discontinued operations had a loss, net of income taxes of €12 million in the current period, down sharply from €229 million a year earlier. This change is reflected directly in third-quarter net income, which rose to €792 million from €389 million in the same period a year earlier.

Results of Siemens – First nine months of fiscal 2006 compared to first nine months of fiscal 2005

     The following discussion presents selected information for Siemens for the nine months:

		June 30,
(€ in millions)		2006				2005
New orders			73,643				60,195
New orders in Germany			12,567				12,154
New international orders			61,076				48,041
Sales			63,402				53,339
Sales in Germany			11,833				11,505
International sales			51,569				41,834

     Orders in the first nine months were €73.643 billion, a 22% increase from €60.195 billion in the prior-year period. Sales of €63.402 billion were up 19% from €53.339 billion a year earlier. Excluding currency translation effects and the net effect of acquisitions and dispositions (organics growth), orders climbed 10% and sales rose 8%. Growth was driven by international markets, where major orders were both numerous and well-distributed. International orders for the first nine months were up 27% year-over-year, to €61.076 billion. Sales rose 23%, to €51.569 billion. In Germany, both orders and sales increased 3% year-over-year, to €12.567 billion and €11.833 billion, respectively, primarily due to acquisitions between the periods under review.

     Within international growth, Asia-Pacific posted orders of €11.668 billion and sales of €9.233 billion, both up 35% year-over-year. Within Asia-Pacific, orders in China for the first nine months climbed 34%, to €4.109 billion, while sales surged 56%, to €3.201 billion. In the Americas order and sales grew by 22% and 24%, respectively, including strong portfolio and currency translation effects. Within this trend, the U.S. posted orders of €13.634 billion and sales of €12.726 billion, both 22% higher than in the first nine months a year earlier. In Europe outside Germany, orders for the first nine months increased 19%, to €22.614 billion, and sales were up 14% year-over-year, at €19.881 billion, both strongly benefiting from portfolio effects.

		June 30,
(€ in millions)		2006				2005
Gross profit on sales			17,514				15,986
as percentage of sales			27.6	%			30.0	%

     Gross profit for the first nine months increased 10% year-over-year, as a majority of the Groups in Operations increased their earnings. Gross profit margin for the first nine months was 27.6% compared to 30.0% a year earlier. Factors that reduced gross profit margin year-over-year were primarily a changed sales mix at a number of Groups, particularly at A&D and PG and higher severance charges at SBS and Com.

		June 30,
(€ in millions)		2006				2005
Research and development expenses			(4,117	)			(3,608	)
as percentage of sales			6.5	%			6.8	%
Marketing, selling and general administrative expenses			(11,168	)			(9,898	)
as percentage of sales			17.6	%			18.6	%
Other operating income, net			179				38
Income from investments in other companies, net			546				434
Income from financial assets and marketable securities, net			439				309
Interest expense of Operations, net			(24	)			(23	)
Other interest income, net			164				206

     R&D investments and marketing, selling and general administrative expenses in the first nine months of fiscal 2006 increased compared to the first nine months a year earlier, but declined as a percentage of sales due primarily to significant sales growth between the two periods under review. Other operating income, net was €179 million in the current period up from €38 million a year earlier. The increase was due mainly to beneficial effects related to settlement of an arbitration proceeding, and also higher disposals of real estate property in the current period. Income from investment in other companies, net increased to €546 million from €434 million in the prior-year period, mainly due to increased gains from sales of investments. Income from financial assets and marketable securities rose year-over-year, primarily due to higher gains on sale of shares in Juniper Networks, Inc., which amounted to €356 million in the current period and €208 million in the prior-year period.

		June 30,
(€ in millions)		2006				2005
Income from continuing operations before income taxes			3,533				3,444
Income taxes			(867	)			(787	)
as percentage of income from continuing operations before income taxes			25	%			23	%
Minority interest			(146	)			(96	)
Income from continuing operations			2,520				2,561
Loss from discontinued operations, net of income taxes			(28	)			(390	)
Net income			2,492				2,171

     Income from continuing operations before income taxes in the first nine months was €3.533 billion compared to €3.444 billion in the same period a year earlier, despite a substantial increase in severance charges at SBS and Com that was only partially offset by higher gains from sales of Juniper shares mentioned above. The severance charges at SBS and Com totaled €596 million compared to €165 million in the prior-year period.

     Income from continuing operations in the first nine months was €2.520 billion, slightly below €2.561 billion in the same period a year earlier, due to a higher tax rate. The tax rate in the current year of 25% was dominated by domestic tax free income, while in the prior year period our income tax rate of 23% benefited from a reorganization of certain businesses in the U.S. generating previously unrecognized tax deductions. The loss from discontinued operations, net of income taxes was €28 million in the current period, down from a loss of €390 million in the first nine months a year earlier. This change had a corresponding effect on nine-month net income, which rose 15% year-over-year, to €2.492 billion.

Portfolio activities

     During the third quarter, Med announced two acquisitions that would strengthen its competitive position in the strategically important medical diagnostics market. The first acquisition involves Diagnostics Products Corporation (DPC), USA. The preliminary purchase price amounts to approximately €1.5 billion (see “Subsequent event” for further information). Med also signed an agreement to acquire the diagnostics division of Bayer AG, Germany for a preliminary purchase price of approximately €4.2 billion. The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close early in fiscal 2007.

     Also in the third quarter, the Company sold the majority of the VA Tech power generation business, including the hydropower activities, to Andritz AG, Austria. The sale was completed in May 2006 for a purchase price of approximately €185 million.

     At the beginning of April 2006, SBS closed the sale of its Product Related Services (PRS) business to Fujitsu Siemens Computers (Holding) BV.

     In June 2006, Siemens agreed to divest the distribution and industry logistics as well as material handling products (Dematic) businesses, pending regulatory approval. The assets and liabilities of Dematic-related operations of Siemens are classified on the balance sheet as held for disposal. The transaction is expected to close in the fourth quarter of fiscal 2006.

     Also in June 2006, Siemens and Nokia announced to contribute the carrier-related operations of Siemens, which are part of Com, and the Networks Business Group of Nokia into a new company, to be called Nokia Siemens Networks (NSN), in exchange for shares in NSN. Siemens and Nokia will each own 50% of NSN. The assets and liabilities of carrier-related operations of Siemens are classified on the balance sheet as held for disposal. The transaction is expected to close by the second quarter of fiscal 2007 at the latest.

     The assets and liabilities of the enterprise networks business, which is part of Com, were also reclassified on the balance sheet as held for disposal as of June 30, 2006. The Company expects to divest the enterprise networks business within one year.

     For a detailed discussion of our acquisitions and dispositions, see “Notes to Consolidated Financial Statements.”

Segment information analysis

Operations

Information and Communications

Communications (Com)

		Third quarter																	Nine months ended June 30,
										% Change																	% Change
(€ in millions)		2006				2005				Actual				Adjusted*					2006				2005				Actual				Adjusted**
Group profit			3				(81	)												365				364				0	%
Group profit margin			0.1	%			(2.7	)%												3.9	%			4.2	%
Sales			2,972				2,955				1	%			(1	)%				9,362				8,706				8	%			4	%
New orders			3,258				3,099				5	%			4	%				10,279				9,551				8	%			4	%

*		Excluding portfolio effects of 2% and 1% on sales and orders, respectively.
**		Excluding currency translation effects of 3% on sales and orders, and portfolio effects of 1% on sales and orders.

     Following an intensive analysis by the Managing Board associated with the strategic reorientation of Com’s operations, the carved out Siemens Home and Office Communication Devices business (SHC) was reclassified to Other Operations effective in the third quarter. Results for both Com and Other Operations have been recast on a retroactive basis, to present meaningful comparisons between current and prior periods.

     Third-quarter sales for Com edged up 1% year-over-year, to €2.972 billion, and orders rose 5%, to €3.258 billion. Group profit at Com was positive compared to a loss in the third quarter a year earlier. Severance charges of €34 million were nearly unchanged compared to the prior-year quarter. The carrier business posted higher sales and also increased its earnings contribution year-over-year. Sales at the enterprise networks business declined year-over-year, and its loss widened. Com expects higher severance charges in the fourth quarter compared to the third quarter.

     In the first nine months of fiscal 2006, sales at Com were €9.362 billion and orders were €10.279 billion, both 8% higher than in the first nine months a year earlier. Nine-month Group profit was nearly unchanged at €365 million. While severance charges were higher in the current period, at €198 million compared to €62 million, the current period also included higher gains on sales of Com’s shares in Juniper Networks, Inc., totaling €356 million compared to €208 million in the first nine months a year earlier. Com’s carrier networks activities delivered higher sales and earnings compared to the first nine months of the prior year. While year-to-date sales at the enterprise networks business declined slightly, losses widened significantly year-over-year.

     Execution of the strategic reorientation of Com’s operations is expected to continue in coming quarters. Effective with the end of the third quarter, on June 30, 2006, Com’s carrier networks business and its enterprise networks business are held for disposal. In June of 2006, Siemens reached an agreement to merge the carrier networks business into a joint venture with Nokia, and this transaction is expected to close by the second quarter of fiscal 2007 at the latest. For further information see “Notes to the Consolidated Financial Statements”. In addition, A&D will assume operational control of Com’s Wireless Modules division at the beginning of fiscal 2007.

Siemens Business Services (SBS)

		Third quarter																	Nine months ended June 30,
										% Change																	% Change
(€ in millions)		2006				2005				Actual				Adjusted*					2006				2005				Actual				Adjusted**
Group profit			(99	)			(109	)			9	%								(522	)			(263	)			(98	)%
Group profit margin			(9.2	)%			(8.2	)%												(13.5	)%			(6.8	)%
Sales			1,081				1,331				(19	)%			(1	)%				3,880				3,871				0	%			2	%
New orders			1,054				1,331				(21	)%			2	%				3,919				4,730				(17	)%			(13	)%

*		Excluding portfolio effects of (18)% and (23)% on sales and orders, respectively.
**		Excluding currency translation effects of 1% on sales and orders, and portfolio effects of (3)% and (5)% on sales and orders, respectively.

     Effective at the beginning of the third quarter on April 1, 2006, SBS closed the previously announced sale of its Product Related Services (PRS) business to Fujitsu Siemens Computers (Holding) BV.

     Sales and orders for SBS in the third quarter decreased and reflect the PRS divestment, coming in at €1.081 billion and €1.054 billion, respectively. On an adjusted basis, excluding portfolio effects, sales came within 1% of the prior-year level and third-quarter orders were up 2% year-over-year. Group profit was again negative, but improved compared to the same quarter a year earlier. The current period included higher severance charges compared to the prior year, at €35 million, as well as adverse effects related to the divestiture of PRS.

     In the first nine months of fiscal 2006, sales of €3.880 billion were nearly level year-over-year. Orders of €3.919 billion were lower due to a more selective order intake, the PRS divestiture, and a smaller number of major orders compared to the first nine months a year earlier. The Group’s loss of €522 million for the first nine months included severance charges totaling €398 million, a significantly higher level than in the same period a year earlier.

Automation and Control

Automation and Drives (A&D)

		Third quarter																	Nine months ended June 30,
										% Change																	% Change
(€ in millions)		2006				2005				Actual				Adjusted*					2006				2005				Actual				Adjusted**
Group profit			396				333				19	%								1,121				909				23	%
Group profit margin			12.3	%			13.2	%												12.1	%			12.6	%
Sales			3,214				2,515				28	%			10	%				9,297				7,196				29	%			8	%
New orders			3,541				2,692				32	%			11	%				10,640				7,727				38	%			13	%

*		Excluding portfolio effects of 18% and 21% on sales and orders, respectively.
**		Excluding currency translation effects of 3% on sales and orders, and portfolio effects of 18% and 22% on sales and orders, respectively.

     Beginning in fiscal 2006, A&D includes the Electronics Assembly Systems division on a retroactive basis, to present a meaningful comparison with prior periods. The division was formerly part of the Logistics and Assembly Systems Group (L&A), which was dissolved as of the beginning of fiscal 2006.

     In the third quarter A&D posted a quarterly profit of €396 million, up 19% year-over-year. A&D’s Group profit margin remained high for the quarter, despite a changing sales mix and increased selling costs associated with strategic expansion of the Group’s business base. Both sales and orders included a combination of double-digit organic growth and new volume from acquisitions between the periods under review. As a result, sales climbed to €3.214 billion, up 28% year-over-year, and orders rose to €3.541 billion, 32% higher than the prior-year period. A&D’s continued expansion in Asia-Pacific included particularly rapid growth in China.

     For the first nine months, Group profit at A&D reached €1.121 billion, a new high and a 23% increase compared to the first nine months a year earlier. Sales for the first nine months climbed to €9.297 billion and orders reached €10.640 billion, both up strongly from the same period a year earlier. These increases followed

the same pattern as in the third quarter, as new volume from acquisitions joined a solid base of organic growth and regionally broad demand was highlighted by rapid growth in Asia-Pacific. In the fourth quarter, the acquisitions of Flender and Robicon, both acquired in the fourth quarter of fiscal 2005, will contribute to sales and orders on an organic basis rather than as new volume, with a corresponding effect on reported growth rates.

     Beginning in fiscal 2007, A&D will assume operational responsibility for the Wireless Modules division currently included within Com.

Industrial Solutions and Services (I&S)

		Third quarter																	Nine months ended June 30,
										% Change																	% Change
(€ in millions)		2006				2005				Actual				Adjusted*					2006				2005				Actual				Adjusted**
Group profit			78				13				500	%								207				107				93	%
Group profit margin			3.5	%			0.9	%												3.3	%			2.6	%								<