Combined Management Report Fiscal year % Change (in millions of €) 2023 2022 Actual Comp. Orders 20,629 13,200 56% 65% Revenue 10,549 9,692 9% 15% therein: service business 1,710 1,592 7% 9% Profit 882 794 11% Profit margin 8.4% 8.2% Order intake at Mobility exceeded the record level a year earlier on sharply higher volume from large orders. Contract wins in fiscal 2023 were highlighted by an order worth €2.9 billion for locomotives and associated maintenance in India, a €2.5 billion order for the first line of a turnkey rail system in Egypt and a €2.1 billion order for suburban trains in Germany. Order intake a year earlier included among others an order worth €1.5 billion for high-speed trains in Germany. Revenue rose on growth in nearly all businesses with the strongest contribution coming from the rolling stock business, and was supported by improved availability of components. On a geographic basis, revenue grew in all three reporting regions. Nominal volume development was held back by the fiscal 2022 divestment of Yunex Traffic, resulting in a portfolio effect which took four percentage points from order growth and five percentage points from revenue growth in the current period. As with revenue, profit and profitability rose in nearly all businesses. Profit in fiscal 2023 included a positive €0.2 billion in trailing effects related to the winding down of business activities in Russia a year earlier, which burdened prior-year profit by €0.6 billion in impairments and other charges. In addition, profit in fiscal 2022 included impacts from supplier delays and COVID-19 effects. These burdens were largely offset by a gain of €0.7 billion from the sale of Yunex Traffic. Severance charges were €25 million, compared to €27 million a year earlier. Mobility’s order backlog rose to €45 billion at the end of the fiscal year, of which €11 billion are expected to be converted into revenue in fiscal 2024. Markets served by Mobility grew significantly in fiscal 2023, supported by long-term trends such as urbanization, decarbonization and increasing demand for digital solutions. Market dynamics in fiscal 2023 also benefited from receding material shortages and easing of supply chain constraints. On a geographic basis, all regions contributed to market growth, highlighted by large and very large orders in Germany, the U.S., Egypt and India, among others. The market for rolling stock included large orders for high-speed trains, commuter trains and locomotives in Europe, India and Egypt. Growth in North America included major investments in new and existing fleets, especially for urban transport. Growth in the rail infrastructure market was driven mainly by digitalization, deployment of ETCS technology and track electrification, for example with projects in Europe and Asia. For fiscal 2024, markets served by Mobility are expected to grow clearly, benefiting from the above-mentioned trends and with all reporting regions contributing to growth. Market expansion is expected to be supported by a large number of public investment programs. Mobility anticipates that rail operators in Europe, particularly in Germany and in the U.K., will continue making significant investments in rolling stock and advanced rail infrastructure solutions and that customers in the Middle East and Africa will tender large turnkey projects, especially in North Africa and the Middle East such as in in Egypt, Saudi Arabia and the United Arab Emirates. Markets in the U.S. are expected to remain strong, especially due to ongoing investments in rolling stock, particularly for mainline and light rail transport; within the infrastructure market demand is expected to continue for mass transit including communications-based train control technology and from a developing market for rail freight solutions. In Asia, markets in India are expected to grow strongly with investments in mainline transport (high-speed trains, freight infrastructure, rolling stock fleet renewals and expansions of large commuter rail and locomotive tenders), urban metros and rail electrification driving growth. 3.5 Siemens Healthineers Siemens as majority shareholder holds just over 75% of the shares of the publicly listed Siemens Healthineers AG, Germany. Siemens Healthineers is a global provider of healthcare products, solutions and services. It develops, manufactures, and sells a diverse range of diagnostic and therapeutic products and services to healthcare providers. In addition, Siemens Healthineers also provides clinical consulting services, as well as an extensive range of training and service offerings. This comprehensive portfolio supports customers along the entire care continuum, from prevention and early detection through to diagnosis, treatment, and follow-up care. The customer spectrum ranges from public and private healthcare providers, including hospitals and hospital systems, public and private clinics and laboratories, universities, physicians/joint medical practices, public health agencies, public and private health insurers, through to pharmaceutical companies and clinical research institutes. The imaging business provides imaging products, services, and solutions as well as digital offerings. Its most important products are devices for magnetic resonance imaging, computed tomography, X-ray, molecular imaging, and ultrasound. The diagnostics business comprises in-vitro diagnostic products and services that are offered to healthcare providers in the fields of laboratory and point-of-care diagnostics. The Varian business provides multi-modality cancer care technologies along with solutions and services to oncology departments in hospitals and clinics. The portfolio of the advanced therapies business consists of highly integrated products, services, and solutions across multiple clinical fields that are designed to support image-guided minimally invasive treatments, in areas such as cardiology, interventional radiology, and surgery. Competition in the imaging, Varian and advanced therapies businesses consists mainly of a small number of large multinational companies, while the diagnostics market is fragmented with a variety of global players that compete with each other across market segments and also with several regional players and specialized companies in niche technologies. Markets of Siemens Healthineers are characterized by long-term stability, though, over the long term, these markets may also experience shorter-term fluctuations arising from macroeconomic and health political developments, such as changes in health policy, regulation or reimbursement systems. Because a substantial portion of Siemens Healthineers’ revenue stems from recurring business, growth opportunities can be pursued from a stable foundation of profit. The addressable markets of Siemens Healthineers are shaped by four major trends. The first is demographic developments, in particular the growing and aging global population. This trend poses major challenges for global healthcare systems and, at the same time, offers an opportunity for healthcare providers as the demand for cost-efficient healthcare solutions increases. The second trend is economic development in emerging countries, which opens up improved access to healthcare for many people. Significant investment in the expansion of private and public healthcare systems will persist, driving overall demand for healthcare products and services and hence market growth. The third trend is the increase in non-communicable diseases as a consequence of an aging population and environmental and lifestyle-related changes. This trend results in far more patients with multiple morbidities, increasing the need for new ways to detect and treat diseases in a timely manner. The fourth global trend, the transformation of healthcare providers such as hospitals and 10