Compensation Report → B. Compensation of Managing Board members The remaining number of Stock Awards is settled by the transfer of Siemens shares to the relevant Managing Board member. Basic principles and functioning of Stock Awards Allocation Four-year vesting period Settlement after expiration of vesting period ■ ■ Target amount Performance range 0%-200% Number of Stock Awards based (based on 100% target on target achievement achievement) Total shareholder return (TSR) compared to sector index x Siemens share price (weighting: 80%) (Xetra closing price on x 2 (Extrapolation to transfer date) maximum possible target 1-year » 3-year achievement of 200%) reference! ) performance = Value of Stock Awards in € period j period (Cap: 300% of target amount) = Maximum allocation Siemens-internal amount ESG/Sustainability index (based on 200% target (weighting: 20%) > 300% of target amount S 300% of target amount achievement) Number of Stock Awards Number of Stock Awards based on target based on target 4-year achievement is reduced achievement -r- Allocation price performance by amount by which = final number of (Xetra closing price on the period cap is exceeded Stock Awards allocation date, less the estimated discounted dividends) = Maximum number = Final number of Stock Awards of Stock Awards Actual target achievement (based on 200% target achievement) Settlement by transfer of Siemens shares to Managing Board member B.3.2.2 ALLOCATION OF STOCK AWARDS IN FISCAL 2023 The Supervisory Board approved the following performance criteria for the 2023 Stock Awards tranche: → “Long-term value creation,” measured in terms of the development of the TSR of Siemens AG relative to the international sector index MSCI World Industrials and → “Sustainability,” measured in terms of the Siemens-internal ESG/Sustainability index, which is based on the following three equally weighted key performance indicators. Target setting for the three key performance indicators is oriented on the Company’s strategic sustainability planning, which is described in detail in Siemens’ sustainability reporting. FISCAL 2023 21