Annual Financial Statements NOTE 18 Liabilities thereof thereof maturities maturities Sep 30, up to 1 1 year up more than Sep 30, up to 1 year up more than (in million of €) 2023 year to 5 years 5 years 2022 1 year to 5 years 5 years Liabilities to banks 339 2 337 − 639 639 K K Trade payables 2,374 2,367 7 − 2,249 2,209 40 K Liabilities to affiliated companies 59,483 54,165 3,732 1,585 63,946 56,143 6,119 1,684 Other liabilities 1,222 1,203 19 − 1,080 1,019 61 K thereof to long-term investees 5 5 − − 6 6 − − thereof miscellaneous liabilities 1,217 1,198 19 − 1,074 1,013 61 − therein from taxes 111 111 − − 93 93 − − therein for social security 91 91 − − 137 137 − − Liabilities 63,417 57,737 4,095 1,585 67,914 60,010 6,220 1,684 Liabilities to affiliated companies resulted primarily from intragroup-financing activities. 3.5 Other disclosures NOTE 19 Material expenses Fiscal year (in millions of €) 2023 2022 Expenses for raw materials, supplies and purchased merchandise (6,047) (5,541) Costs of purchased services (4,210) (3,576) Material expenses (10,257) (9,117) NOTE 20 Personnel expenses Fiscal year (in millions of €) 2023 2022 Wages and salaries (4,767) (4,186) Social security contributions and expenses for other employee benefits (689) (674) Expenses for pensions (1,148) (1,213) Personnel expenses (6,603) (6,073) Personnel expenses did not include the expenses resulting from the compounding of the pension and personnel-related provisions, which are included in other financial income (expenses), net. Expenses for pensions mainly included effects from pension increases due to the continued high consumer price index as part of the actuarial valuation of the settlement amount of pension obligations. The breakdown of employees per function is as follows: Fiscal year 2023 Production 27,200 Sales 8,300 Research and development 7,100 Administration and general functions 6,300 Employees 49,000 NOTE 21 Share-based payment Siemens AG allows employees and members of the Managing Board to participate in share-based payment programs. For the purpose of servicing share-based payment programs, Siemens AG also delivers Siemens shares, which have been granted by affiliated companies. Stock Awards Siemens AG grants stock awards to members of the Managing Board, members of the senior management and other eligible employees. Stock awards to beneficiaries of Siemens AG are expensed as incurred over the vesting period and are measured at the intrinsic value (= share price of the Siemens stock) at the balance sheet date on a pro rata basis for the proportion of the vesting period expired, if applicable, considering the estimated target attainment at the balance sheet date. 13