Independent Auditor’s Reports (Group) Revenues, total estimated contract costs and profit recognition may deviate significantly from original estimates based on new knowledge about cost overruns and changes in project scope over the term of a construction-type contract. The effects of current geopolitical and macroeconomic developments on the project business, such as delays in project execution, price increases or disruptions in supply chains and their accounting treatment were taken into account during our audit. Auditor’s response: As part of our audit, we obtained an understanding of the Group’s internally established methods, processes and control mechanisms for project management in the bid and execution phase of construction-type contracts. In this regard, we assessed the design and operating effectiveness of the accounting-related internal controls in the project business by obtaining an understanding of business transactions specific to construction-type contracts, from the initiation of the transaction through presentation in the consolidated financial statements. We also tested controls addressing the timely assessment of changes in cost estimates, the timely and complete recognition of such changes in the project calculation as well as their accounting treatment. As part of our substantive audit procedures, which particularly involved project reviews, we evaluated management’s estimates and assumptions based on a risk-based selection of a sample of contracts. Our sample primarily included projects that are subject to significant future uncertainties and risks, such as projects with complex safety/technical and regulatory requirements or projects with a large portion of materials and services to be provided by suppliers or consortium partners, fixed-price or turnkey projects, cross-border projects and projects with changes in cost estimates, delays and/or low or negative margins. Our audit procedures included, among others, review of the contracts and their terms and conditions including contractually agreed partial deliveries and services, termination rights, penalties for delay and breach of contract, liquidated damages as well as joint and several liability. In order to evaluate whether revenues were recognized on an accrual basis for the selected projects, we analyzed revenues attributable to the fiscal year and corresponding cost of sales to be recognized in the statement of income considering the extent of progress towards completion and examined the accounting for the associated items in the statement of financial position. For this we also assessed the accounting for contractually agreed options, contract amendments or contract terminations (including related pending legal proceedings) also in relation to previous construction-type contracts with Russian customers. We also assessed the recognition requirements of reimbursement claims. We further performed inquiries of project management (both commercial and technical project managers) with respect to the development of the projects, the reasons for deviations between planned and actual costs, the current estimated costs to complete the projects, and management’s assessments on probabilities that contract risks and claims from joint and several liability will materialize. To identify anomalies in the development of margins and other project KPIs, we also applied data analysis procedures. In designing our audit procedures, we also considered results from project audits conducted by the internal audit function. Furthermore, we obtained evidence from third parties for selected projects (e.g., project acceptance documentation, contractual terms and conditions, and lawyers’ confirmations regarding alleged breaches of contract and asserted claims) and inspected the status of projects at plant sites. Due to the large contract volume and risk profile, our audit procedures focused on large contracts for delivery of high-speed and commuter trains. Our audit procedures did not lead to any reservations relating to revenue recognition on construction-type contracts. Reference to related disclosures: With regard to the recognition and measurement policies applied in accounting for construction-type contracts, refer to Note 2 Material accounting policies and critical accounting estimates in the notes to the consolidated financial statements. With respect to contract assets and liabilities as well as provisions for order related losses and risks, refer to Note 10 Contract assets and liabilities, Note 18 Provisions and Note 21 Commitments and contingencies in the notes to the consolidated financial statements. Valuation of the investment in Siemens Energy AG Reasons why the matter was determined to be a key audit matter: Since the spin-off of Siemens Energy AG in September 2020, Siemens AG has held a 35.1% stake in the listed Siemens Energy AG which was reduced to 25.1% due to capital measures at Siemens Energy AG and the contribution of shares in Siemens Energy AG to the Siemens Pension-Trust e.V. in fiscal year 2023. The investment is accounted for as an associate, applying the equity method in accordance with IAS 28, Investments in Associates and Joint Ventures. As of June 30, 2022, an impairment was recognized on the investment. During the first six months of the financial year 2023, the market capitalization of the investment was mostly higher than the value at the time of the impairment. As of March 31, 2023, the latter was significantly exceeded. As a result, an impairment reversal was made in accordance with IAS 36, Impairment of Assets, in the amount of the increase in the stock market price since the date of the impairment until March 31, 2023. In addition, Siemens Energy AG acquired additional shares in Siemens Gamesa Renewable Energy, S.A. in fiscal year 2023. This led to a reduction in equity in the consolidated financial statements of Siemens Energy AG. The recognition of Siemens’ share in this equity transaction resulted in a reduction of the carrying amount of the investment in Siemens Energy AG, which was recognized directly in Siemens’ equity. As of September 30, 2023, the pro rata market value of the investment was above the book value. Due to the judgments and estimates by management in the analyses and assessments with regards to possible impairments or reversals of impairments as well as the overall material implications for the assets, liabilities and financial position of the Group and the related significant risk of material misstatement, the assessment of the investment in Siemens Energy AG is one of the key audit matters. Auditor’s response: As part of our audit procedures in relation to management’s assessment regarding the valuation of the investment in Siemens Energy AG, we examined the methods and processes defined internally for the identification of indicators for a reversal of an impairment and thus the timing of a possible reversal of an impairment as well as the measurement of a reversal of an impairment of the investment in Siemens Energy AG. With regards to the assessment of whether there are indications for a reversal of an impairment, in particular regarding the interpretation of a possible significant increase of the fair value, we evaluated management’s assessment made on a quarterly and year-end basis as well as management’s judgements and estimates contained therein and also considered external evidence on credit ratings, stock market prices, analysts' assessments and observable valuation indicatorsin this regard. In addition, we evaluated the calculation of the reversal of the impairment as of March 31, 2023. 3