Siemens AG's (Siemens) top-line exceeded our expectations given better-than-expected performance of its Industry and Energy Sector. Adjusted net earnings were above our estimates given lower-thananticipated deprecation costs. Going forward, we expect weak demand in Siemens's end markets to result in the order backlog remaining weak over our 6-12 month investment horizon. Hence we maintain our HOLD rating over our investment horizon until we reassess the stock fully in our 4Q 09 and FY 2009 update report. Although we continue to anticipate a positive currency impact on the ADR over our 6-12 month investment horizon, based on our fundamental outlook, we maintain our HOLD rating for the ADR. We will reassess our target price and rating in our 4Q 09 and FY 2009 update report.

From September 2009, the Research Oracle will begin to accept research submissions from readers – whether amateur or professional analysts – from around the globe. To receive notification of the launch and rules, contributors may register now at
http://www.iirgroup.com/researchoracle/researchoracleaward