Tabulación de la Encuesta

The following table presents the carrying amounts of each category of financial assets and financial liabilities:

September 30,

(in millions of €) 2014 2013

Financial assets:

Loans and receivables 32,281 29,331

Cash and cash equivalents 8,013 9,190

Derivatives designated in a hedge accounting relationship 574 625

Financial assets held for trading 1,995 1,705

Available­for­sale financial assets 2,728 2,161

45,591 43,010

Financial liabilities:

Financial liabilities measured at amortized cost 30,128 29,704

Financial liabilities held for trading 1,338 887

Derivatives designated in a hedge accounting relationship 411 160

31,877 30,751

The following table presents the fair values and carrying amounts of financial assets and financial liabilities measured at cost or amortized cost:

September 30, 2014 September 30, 2013

Fair value Carrying amount Fair value Carrying amount (in millions of €)

Financial assets measured at cost or amortized cost

Trade and other receivables 1 _{12,558 12,558 12,944 12,944}

Receivables from finance leases 5,345 5,345 5,261 5,261

Cash and cash equivalents 8,013 8,013 9,190 9,190

Other non­derivative financial assets 14,378 14,378 11,126 11,126

Available­for­sale financial assets 2 _{– 192 – 167}

Financial liabilities measured at cost or amortized cost

Notes and bonds 18,787 18,165 18,742 18,491

Trade payables 3 _{7,594 7,594 7,599 7,599}

Loans from banks and other financial indebtedness 2,635 2,652 1,821 1,832

Obligations under finance leases 186 130 167 130

Other non­derivative financial liabilities 1,588 1,588 1,651 1,651

1 Consists of (1) € 12,537 million and € 12,932 million trade receivables from the sale of goods and services in fiscal 2014 and 2013, respectively, as well as (2) € 20 million and € 11 million receivables included in line item Other financial assets in fiscal 2014 and 2013, respectively. As of September 30, 2014 and 2013, trade receivables from

the sale of goods and services of € 788 million and € 686 million have a remaining term of more than twelve months.

2 Consists of equity instruments classified as available­ for­ sale, for which a fair value could not be reliably measured and which are therefore recognized at cost.

3 As of September 30, 2014 and 2013, trade payables of € 40 million and € 32 million have a remaining term of more than twelve months.

Cash and cash equivalents includes € 429 million and € 320 mil- lion as of September 30, 2014 and 2013, respectively, which are not available for use by Siemens mainly due to minimum reserve requirements with banks.

As of September 30, 2014 and 2013, the carrying amount of financial assets Siemens has pledged as collateral amounted to € 271 million and € 344 million, respectively.

The carrying amounts of cash and cash equivalents, trade and other receivables and trade payables with a remaining term of up to twelve months, other current financial assets and liabili- ties represent a reasonable approximation of their fair values, mainly due to the short-term maturities of these instruments. Fixed-rate and variable-rate receivables with a remaining term of more than twelve months, including receivables from finance leases, are evaluated by the Company based on para- meters such as interest rates, specific country risk factors, indi- vidual creditworthiness of the customer, and the risk character- istics of the financed project. Based on this evaluation, allowances for these receivables are recognized. As of Septem- ber 30, 2014 and 2013, the carrying amounts of such receiv- ables, net of allowances, approximate their fair values. The fair value of notes and bonds is based on prices provided by price service agencies at the period-end date (Level 2). The fair value of loans from banks and other financial indebted- ness, obligations under finance leases as well as other non- current financial liabilities is estimated by discounting future cash flows using rates currently available for debt of similar terms and remaining maturities (Level 2).

Financial instruments categorized as financial assets and

finan cial liabilities measured at fair value are presented in the following table:

September 30,

(in millions of €) 2014 2013

Financial assets measured at fair value

Available­for­sale financial assets 2,536 1,994

Derivative financial instruments 2,569 2,330 Not designated in a hedge accounting

relationship 1,783 1,587

In connection with fair value hedges

(mainly interest rate derivatives) 476 472 In connection with cash flow hedges (main-

ly foreign currency exchange derivatives) 98 153

Embedded derivatives 212 118

5,105 4,324

Financial liabilities measured at fair value

Derivative financial instruments 1,749 1,047 Not designated in a hedge accounting

relationship 1,308 765

In connection with fair value hedges 5 8 In connection with cash flow hedges (main-

ly foreign currency exchange derivatives) 406 152

Embedded derivatives 30 122

1,749 1,047

The fair value of available-for-sale financial assets quoted in an active market is based on price quotations at the period-end date. The fair value of debt instruments is either based on prices provided by price service agencies or estimated by dis- counting future cash flows using current market interest rates. The Company limits default risks resulting from derivative financial instruments by a careful counterparty selection. Derivative financial instruments are generally transacted with financial institutions with investment grade credit ratings. The fair valuation of derivative financial instruments at Siemens incorporates all factors that market participants would con- sider. This includes credit risks for which a credit valuation adjustment is determined based on Siemens’ net exposure towards each counter party. The exact calculation of fair values of derivative financial instruments depends on the specific type of instrument:

Derivative interest rate contracts – The fair values of derivative interest rate contracts (e.g. interest rate swap agreements) are estimated by discounting expected future cash flows using cur- rent market interest rates and yield curves over the remaining term of the instrument. Interest rate futures and interest rate options are valued on the basis of quoted market prices when available. If quoted market prices are not available, interest rate options are valued based on option pricing models.

Derivative currency contracts – The fair value of foreign cur- rency exchange contracts is based on forward exchange rates. Currency options are valued on the basis of quoted market prices or on estimates based on option pricing models. Derivative commodity contracts – The fair value of commodity swaps is based on forward commodity prices. Commodity options are valued on the basis of quoted market prices or on estimates based on option pricing models.

The warrants issued together with US$ 3 billion bonds in fiscal 2012 are valued based on an option pricing model. The most significant inputs used are the underlying Siemens and OSRAM share price and the implied volatility.

In determining the fair values of the derivative financial instru- ments, no compensating effects from underlying transactions (e.g. firm commitments and forecast transactions) are taken into consideration.

The following table allocates financial assets and financial liabilities measured at fair value to the three levels of the fair value hierarchy.

September 30, 2014 (in millions of €) Level 1 Level 2 Level 3 Total Financial assets measured

at fair value

Available­for­sale financial assets 1,527 703 307 2,536

Equity instruments 1,527 1 307 1,834

Debt instruments – 702 – 702

Derivative financial instruments – 2,569 – 2,569

Total 1,527 3,272 307 5,105

Financial liabilities measured at fair value

Derivative financial instruments – 1,749 – 1,749

September 30, 2013 (in millions of €) Level 1 Level 2 Level 3 Total Financial assets measured

at fair value

Available­for­sale financial assets 1,612 382 – 1,994

Equity instruments 1,612 – – 1,612

Debt instruments – 382 – 382

Derivative financial instruments – 2,330 – 2,330

Total 1,612 2,712 – 4,324

Financial liabilities measured at fair value

Derivative financial instruments – 1,047 – 1,047

The levels of the fair value hierarchy and its application to our financial assets and financial liabilities are described below:

Level 1: quoted prices in active markets for identical assets