Annual Financial Statements NOTE 3 Income (loss) from investments, net Fiscal year (in millions of €) 2023 2022 Income from investments 2,907 4,789 thereof from affiliated companies 2,905 4,768 Income from profit transfer agreements with affiliated companies 1,562 3,474 Expenses from loss transfers from affiliated companies − (61) Impairments on investments (179) (3,997) Reversals of impairments on investments 224 61 Gains from the disposal of investments 240 61 Losses from the disposal of investments (19) (124) Income (loss) from investments, net 4,734 4,204 Income from investments included in particular profit distributions from Siemens Ltd., China, amounting to €1,987 million, and from Siemens Healthineers AG, Germany, amounting to €634 million. Income from profit transfer agreements with affiliated companies included profit transfers from Siemens Beteiligungen Inland GmbH, Germany, amounting to €1,323 million, and from Siemens Financial Services GmbH, Germany, amounting to €188 million. Impairments on investments included an impairment of €164 million on a stake in Thoughtworks Holding, Inc., U.S. In fiscal year 2023, Siemens AG sold 3.5% of the shares in Siemens Energy AG that were held as pension assets at that time. This resulted in a gain of €213 million from the disposal of investments. As of the balance sheet date, Siemens AG directly held a 21.0% stake in Siemens Energy AG. A reversal of impairment in the amount of €166 million was made on these shares based on Xetra closing price on the balance sheet date. As of the reporting date, the carrying amount of the investment in Siemens Energy AG amounted to €2.1 billion. NOTE 4 Interest income and interest expenses Both the increase in interest income from €387 million in the prior year to €1,014 million in the current fiscal year and the swing in interest expense from income of €51 million in the prior year to expenses of €1,586 million in the current fiscal year resulted primarily from the effects of higher interest rates in connection with intragroup financing. Interest income included interest income from affiliated companies of €890 million (2022: €347 million). Interest expenses included interest expenses from affiliated companies of €1,548 million (2022: €67 million interest income). Interest income from loans of non-current financial assets amounted to €113 million (2022: €80 million). NOTE 5 Other financial income (expenses), net Fiscal year (in millions of €) 2023 2022 Interest component of changes in the pension and personnel-related provisions that are offset against designated plan assets (21) 18 Income from designated plan assets 44 19 Expenses from designated plan assets (1) (89) Financial income (expenses), (net) from pension and personnel-related provisions that are offset against designated plan assets 22 (52) Interest component of changes in the pension and personnel-related provisions that are not offset against designated plan assets (181) (487) Result from realization of monetary balance sheet items denominated in foreign currencies (28) 138 Result from foreign currency, interest rate and other derivative financial instruments 479 510 Result from changes in provisions for risks relating to derivative financial instruments 59 (361) Reversal of impairments of loans and securities 71 76 Impairments of loans and securities − (904) Other financial income 23 40 Other financial expenses − (3) Other financial income (expenses), net 445 (1,044) Result from foreign currency, interest rate and other derivative financial instruments included income of €536 million from the termination of interest rate hedging contracts and combined interest and currency hedging contracts in connection with intragroup financing. 7