Consolidated Financial Statements Siemens’ share price of €133.66 and €153.58. Expected volatility was determined by reference to historic volatilities. The model applies a risk-free interest rate of up to 2.68% and (0.23)% in fiscal 2023 and 2022, respectively, and an expected dividend yield of 3.18% in fiscal 2023 and 2.61% in fiscal 2022. Assumptions relating to correlations between the Siemens share price and the development of the MSCI Index were derived from historic observations of share price and index changes. The fair value of the ESG component of €120.28 and €140.52 per share in fiscal 2023 and 2022, respectively, was determined as Siemens’ share price, less the present value of expected dividends during the vesting period. Stock awards not subject to performance conditions Each quarter, the Company grants stock awards not subject to performance conditions to selected employees. The awards are subject to a ratable vesting period of one to four years, i.e. 25% of the number of awards granted are transferred each year. The weighted average fair value of stock awards granted in fiscal 2023 and 2022 of €125.42 and €125.29 per share, respectively, was determined as Siemens’ share price, less the present value of expected dividends during the respective vesting period. Changes in stock awards: Subject to Not subject to performance conditions performance conditions Fiscal year Fiscal year 2023 2022 2023 2022 Non-vested, beginning of period 8,956,287 8,670,111 1,131,311 624,775 Granted 2,401,240 1,951,223 897,484 778,012 Vested and fulfilled (1,192,351) (1,099,508) (365,913) (198,524) Adjustments due to vesting conditions other than market conditions (91,905) (125,993) n/a n/a Forfeited (1,667,914) (362,176) (66,128) (71,512) Settled (16,447) (77,370) (3,484) (1,440) Non-vested at period-end 8,388,910 8,956,287 1,593,270 1,131,311 Share Matching Program and its underlying plans In fiscal 2023, Siemens issued a new tranche under each of the plans of the Share Matching Program. Share Matching Plan Under the Share Matching Plan, senior managers may invest a specified part of their variable compensation in Siemens shares (investment shares). The shares are purchased at market price at a predetermined date in the second quarter. Plan participants receive the right to one Siemens share without payment of consideration (matching share) for every three investment shares continuously held over a period of about three years (vesting period) provided the plan participant has been continuously employed by Siemens until the end of the vesting period. Monthly Investment Plan Under the Monthly Investment Plan employees other than senior managers may invest a specified part of their compensation in Siemens shares on a monthly basis over a period of twelve months. Shares are purchased at market price at a predetermined date once a month. If the Managing Board decides that shares acquired under the Monthly Investment Plan are transferred to the Share Matching Plan, plan participants will receive the right to matching shares under the same conditions applying to the Share Matching Plan described above with a vesting period of about two years. The Managing Board decided that shares acquired under the tranches issued in fiscal 2022 and 2021 are transferred to the Share Matching Plan as of February 2023 and February 2022, respectively. Base Share Program Under the Base Share Program employees of Siemens AG and participating domestic Siemens companies may invest a fixed amount of their compensation in Siemens shares, sponsored by Siemens. The shares are bought at market price at a predetermined date in the second quarter and grant the right to receive matching shares under the same conditions applying to the Share Matching Plan described above. Siemens’ contributions to the Base Share Program recognized as expense were €23 and €24 in fiscal 2023 and 2022, respectively Resulting Matching Shares: Fiscal year 2023 2022 Outstanding, beginning of period 1,255,825 1,389,016 Granted 655,177 557,839 Vested and fulfilled (573,468) (573,440) Forfeited (68,404) (64,030) Settled (23,663) (53,561) Outstanding, end of period 1,245,467 1,255,825 The weighted average fair value of matching shares granted in fiscal 2023 and 2022 of €107.60 and €121.35 per share, respectively, was determined as Siemens’ share price, less the present value of expected dividends; non-vesting conditions were taken into account. 36