Consolidated Financial Statements Other includes provisions for life and industrial business reinsurance contracts (liability, property, construction) in connection with the Siemens Energy business of €267 million and €339 million as of September 30, 2023 and 2022; thereof life €145 million and €159 million and industrial business €122 million and €180 million, respectively, as of September 30, 2023 and 2022. The provisions are for incurred and reported insurance losses as well as for incurred, hence, not yet reported insurance losses as of fiscal year-end. The provision is determined using actuarial standard valuation methodologies, which are parameterized based on historical loss data. Life reinsurance contracts have an average term of 19 years, whereas the cash outflows for the industrial business reinsurance contracts are expected within the next five years. Other also includes provisions for Legal Proceedings, as far as the risks that are subject to such Legal Proceedings are not already covered by project accounting. Provisions for Legal Proceedings amounted to €227 million and €236 million as of September 30, 2023 and 2022, respectively. As of September 30, 2023, and 2022, €260 million and €181 million are included for claims and charges resulting from the construction business. Furthermore, Other includes provision for indemnifications in connection with dispositions of businesses of €82 million and €92 million as of September 30, 2023 and 2022. Such indemnifications may protect the buyer from potential tax, legal and other risks in conjunction with the purchased business. NOTE 19 Equity As of September 30, 2023, and 2022, Siemens’ issued capital is divided into 800 million and 850 million registered shares, respectively, with no par value and a notional value of €3.00 per share. The shares are paid in full. At the Shareholders’ Meeting, each share has one vote and accounts for the shareholders’ proportionate share in the Company’s net income. All shares confer the same rights and obligations. In fiscal 2023, Siemens cancelled 50 million treasury shares, thereby reducing issued capital by €150 million to €2.4 billion. In fiscal 2023 and 2022, Siemens repurchased 6,853,091 shares and 14,185,791 shares, respectively. In fiscal 2023 and 2022, Siemens transferred 4,227,344 and 4,376,201 treasury shares, respectively. As of September 30, 2023, and 2022, the Company has treasury shares of 10,079,918 and 57,454,171 respectively. Share based payment expenses increased Capital reserve by €444 million and €376 million (including non-controlling interests), respectively, in fiscal 2023 and 2022. In connection with the settlement of share based payment awards, Siemens treasury shares (at cost) were transferred to employees amounting to €265 million and €257 million, respectively, in fiscal 2023 and 2022, which decreased Capital reserve and Retained earnings by €221 million and €44 million, respectively in 2023 and by €191 million and €66 million in fiscal 2022. As of September 30, 2023, and 2022, total authorized capital of Siemens AG is €600 million nominal issuable in installments based on various time-limited authorizations, by issuance of up to 200 million registered shares of no par value. Siemens AG’s conditional capital is €420.6 million or 140.2 million shares as of September 30, 2023 and 2022; which, primarily, can be used to serve convertible bonds or warrants under warrant bonds that could or can be issued based on various time-limited authorizations approved by the respective Shareholders’ Meeting. Dividends paid per share were €4.25 and €4.00, respectively, in fiscal 2023 and 2022. The Managing Board and the Supervisory Board propose to distribute a dividend of €4.70 per share to holders entitled to dividends, in total representing approximately €3.7 billion in expected payments. Payment of the proposed dividend is contingent upon approval at the Shareholders’ Meeting on February 8, 2024. NOTE 20 Additional capital disclosures A key consideration of our capital structure management is to maintain ready access to capital markets through various debt instruments and to sustain our ability to repay and service our debt obligations over time. In order to achieve our target, Siemens intends to maintain an Industrial net debt divided by EBITDA (continuing operations) ratio of up to 1.5 in accordance with our Financial Framework. The ratio indicates the approximate number of years that would be needed to cover the Industrial net debt through Income from continuing operations, excluding interest, other financial income (expenses), taxes, depreciation, amortization and impairments. Sep 30, (in millions of €) 2023 2022 Short-term debt and current maturities of long-term debt 7,483 6,658 Plus: Long-term debt 39,113 43,978 Less: Cash and cash equivalents (10,084) (10,465) Less: Current interest-bearing debt securities (1,047) (1,239) Less: Fair value of foreign currency and interest hedges relating to short- and long-term debt1 (621) (1,720) Net debt 34,843 37,212 2 (28,756) Less: Siemens Financial Services debt (29,107) Plus: Provisions for pensions and similar obligations 1,426 2,275 Plus: Credit guarantees 411 515 Industrial net debt 7,924 10,896 Income from continuing operations before income taxes 11,201 7,154 Plus/Less: Interest income, interest expenses and other financial income (expenses), net (646) 45 Plus: Amortization, depreciation and impairments 3,608 3,561 EBITDA 14,163 10,759 Industrial net debt/EBITDA 0.6 1.0 1 Debt is generally reported at a value approximately representing the amount to be repaid. Accordingly, debt in a hedging relationship is adjusted for fair values of interest hedges as well as for foreign currency hedge effects. Siemens deducts resulting changes in fair value, to derive an amount of debt that approximates the amount that will be repaid. 2 The adjustment considers that both Moody’s and S&P view Siemens Financial Services as a captive finance company. These rating agencies generally recognize and accept higher levels of debt attributable to captive finance subsidiaries in determining credit ratings. Following this concept, Siemens excludes Siemens Financial Services debt. 26