19/12/2024 - Siemens AG: Annual Report 2024 including Consolidated Financial Statements for the Siemens Energy Group, together with the Combined Management Report of Siemens Energy AG and the Siemens Energy Group, as of September 30, 2024 (IFRS)

Siemens Energy

Annual Report 2024

siemens-energy.com

Siemens Energy Group at a glance

Revenue distribution (location of customer) (in billions of €)

EMEA

18.1

therein Germany 3.1

34.5

Americas

10.3

therein U.S. 6.9

Asia, Australia

6.1

therein China 1.5

Profit margin before Special	Profit before Special items	Net income
items	(in millions of €)	(in millions of €)
1.0%	345	1,335

Order Backlog	Orders	Book-to-bill ratio
(in billions of €)	(in billions of €)
123	50.2	1.5

Free cash flow pre tax	Basic EPS	Employees ∅
(in millions of €)	(in €)	(in thousands)
1,859	1.37	98

Content	1	Introduction to the Annual Report
		2	Siemens Energy Group at a glance
		5	Letter from the Executive Board
		6	Our leadership team
		7	About this Report
	2	Combined Management Report

9 Business description

12 Financial performance system

1. Business performance in fiscal year 2024

1. Results of operation

1. Net assets, liabilities and equity

1. Financial position

1. Report on expected developments

1. Report on the internal control and risk management system and material risks and opportunities

1. Explanations to the Financial Statements of Siemens Energy AG (Holding)

1. Group non-financial statement

1. Takeover-relevantinformation

1. Further information

3 Consolidated Financial Statements

1. Consolidated Statements of Income
2. Consolidated Statements of Comprehensive Income
3. Consolidated Statements of Financial Position
4. Consolidated Statements of Cash Flows
5. Consolidated Statements of Changes in Equity
6. Notes to Consolidated Financial Statements

4 Additional information

1. Responsibility Statement
2. Independent Auditor's Report

153 Independent auditor's report on a limited assurance engagement

155 Report of the Supervisory Board

162 Corporate Governance pursuant to Sections 289f and 315d of the German Commercial Code

177 Compensation Report of Siemens Energy AG for fiscal year 2024 pursuant to Section 162 of the German Stock

Corporation Act

195 Independent auditor's report on the audit of the compensation report prepared to comply with Section. 162

AktG ["Aktiengesetz": German Stock Corporation Act]

197 TCFD Index

Introduction to the Annual Report

Siemens Energy Group at a glance	2
Letter from the Executive Board	5
Our leadership team	6
About this Report	7

5

Letter from the Executive Board

Siemens Energy can look back on a successful fiscal year 2024. Not only did we achieve our financial targets, but we also exceeded them in some areas. A positive market environment helped us: global electricity demand rose by around 4% in 2024, compared with 2.5% in the previous year. The rapidly growing electricity market demands a wide range of our products and solutions. Our Grid Technologies and Gas Services business areas in particular benefited from this in the past fiscal year. Transformation of Industry and Siemens Gamesa also achieved their targets.

We set ourselves three priorities for fiscal year 2024: deliver on profitable growth, fix the wind business, and maintain our solid financial foundation.

Progress has been made: We achieved profitable growth in the Gas Services, Grid Technologies and Transformation of Industry business areas. Here, we have systematically addressed the quality issues identified in the area of onshore in the 2023 fiscal year, which had a significant impact on our financial results in 2023. No new causes of defects have been identified, and we have resumed sales in onshore. In the offshore area, we were able to gradually increase productivity as part of the ramp-up of the new turbines. We are committed to achieving the break-even in fiscal year 2026.

Building on this progress, we generated positive earnings before special items, returned to net liquidity, and thus strengthened our financial base. This has been rewarded by you, dear shareholders, as can be seen from the positive development of our share price in the 2024 fiscal year. I would like to thank you for your trust.

With order intake of €50.2 billion, order backlog reached another new record of €123 billion, with further improvement in the margin quality. Revenue increased by 12.8% on a comparable basis to €34.5 billion, with all segments contributing to this growth, slightly exceeding the group outlook (10% - 12%). Profit before Special items came in at €345 million. The Profit margin before Special items of 1% came in at the upper end of the guided range of negative 1% to positive 1%. Free cash flow pre tax increased to €1,859 million, more than doubling from last year and exceeding the adjusted guidance of €1 billion to €1.5 billion. Adjusted net cash position for the company was €1,951 million. The Net Income of Siemens Energy was €1,335 million.

For fiscal year 2025, Siemens Energy expects to achieve comparable revenue growth (excluding currency translation and portfolio effects) in a range of 8% to 10% and a Profit margin before Special items between 3% and 5%. The company expects Net Income to be positive due to assumed positive Special items subsequent to the demerger of Siemens Limited, India. With -out these gains, Siemens Energy expects Net income to be around break-even. Free cash flow pre tax is expected to be up to €1 billion.

We expect global demand for electricity to continue to grow significantly in the coming years. This growth requires a vast amount of additional electricity infrastructure. In the U.S. alone, nearly €500 billion in investments will be needed by 2030 to meet the energy requirements of data centers. According to the World Energy Outlook 2024, almost €2 trillion per year - and thus two-thirds of all global energy investments - will flow into energy transition technologies and thus also into products and solutions from Siemens Energy.

The past fiscal year was a big step in the right direction. However, there is still a lot of work ahead of us. We will continue on this path with passion, consistency, and a focus on profitable growth. We will make targeted investments to strengthen and expand our core business to achieve market- leading profitability and ensure sustainable growth.

We have laid the foundation for this with our good results in fiscal year 2024. Our employees in over 90 countries are doing everything they can to achieve our goals. This is because they are working with all their energy and passion to seize the opportunities arising from the energy transition. I would be delighted if you would continue to accompany us on this path in the future, and I thank you very much for your trust.

President and Chief Executive Officer

Christian Bruch

Siemens Energy - Annual Report 2024

Our leadership team

6

Christian Bruch
President and
Chief Executive	Karim Amin
Officer
Maria Ferraro	Member of the
Chief Financial Officer	Executive Board

Anne-Laure
Parrical de Chammard	Tim Holt	Vinod Philip
Member of the	Member of the	Member of the
Executive Board	Executive Board	Executive Board

Siemens Energy - Annual Report 2024

7

About this Report

This Annual Report contains the Consolidated Financial Statements and the Combined Management Report of Siemens Energy AG and its subsidiaries ('Siemens Energy', 'the Group', 'the Company', or 'we') for the year ended 30. September 2024 including the Group non-financial statement in chapter 2.10 Group non-financialstatement of the Combined Management Report, as well as further information. It complies with the annual financial reporting requirements of Section 114 of the German Securities Trading Act ("Wertpapierhandelsgesetz"). The Combined Management Report includes the management report for Siemens Energy AG in addition to the information on the Group. This Annual Report also contains the 4.5 Corporate Governance pursuant to Sections 289f and 315d of the German Commercial Code as well as the 4.6 Compensation Report of Siemens Energy AG for fiscal year 2024 pursuant to Section 162 of the German Stock Corporation Act. Independently of this, as part of our focused corporate communications activities, we will also be reporting on sustainability matters within a dedicated sustainability report (available under www.siemens-energy.com).

The Siemens Energy's Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) as well as with the additional requirements set forth in Section 315 e para. 1 German Commercial Code. KPMG AG Wirtschaftsprüfungsgesellschaft has audited the Consolidated Financial Statements and the Combined Management Report. The unqualified independent auditor's report can be found under 4.2 Independent Auditor's Report. The Independent Auditor's Report also includes a "Report on the assurance in accordance with Section 317 (3a) HGB on the electronic reproduction of the Consolidated Financial Statements and the Group management report prepared for publication purposes" ("ESEF Report"). The audit subject underlying the ESEF Report (ESEF documents to be audited) is not attached. The audited ESEF documents can be viewed or accessed at www.siemens-energy.com.

This document contains statements related to our future business and financial performance and future events or developments involving Siemens Energy, that may constitute forward-looking statements. These statements may be identified by words such as "expect", "look forward to", "anticipate", "intend", "plan", "believe", "seek", "estimate", "will", "project" or words of similar meaning. We may also mak e forward-looking statements in other reports, prospectuses, presentations, material delivered to shareholders and press releases. In addition, our representatives may from time to time make verbal forward-looking statements.

Such statements are based on the current expectations and certain assumptions of Siemens Energy's management, of which many are beyond Siemens Energy's control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapters 2.7 Report on expected developments and 2.8 Report on the internal control and risk management and material risks and opportunities of the Annual Report. Should one or more of these risks or uncertainties materialize, should acts of force majeure, such as pandemics, occur, or should underlying expectations including future events occur at a later date or not at all, or should assumptions prove incorrect, Siemens Energy's actual results, performance, or achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-lookingstatement. Siemens Energy neither intends, nor assumes any obligation to update or revise these forward-lookingstatements in light of developments, which differ from those anticipated.

This document includes in the applicable financial reporting standards not clearly defined supplemental financial measures, that are or may be alternative performance measures. These supplemental financial measures should not be viewed in isolation, or as alternatives to measures of Siemens Energy's net assets, financial position and results of operations as presented in accordance with the applicable financial reporting standards in its Consolidated Financial Statements. Other companies, that report or describe similarly titled alternative performance measures, may calculate them differently.

The Consolidated Financial Statements have been prepared and published in millions of euro (€ million). Due to rounding, numbers presented throughout this and other documents, may not add up precisely to the totals provided, and percentages may not precise ly reflect the absolute figures.

This document is an English language translation of the German document. In case of discrepancies, the German language document is the sole authoritative version.

For technical reasons, there may be differences between the accounting records appearing in this document and those published pursuant to legal requirements.

Siemens Energy - Annual Report 2024

Combined Management Report

2.1	Business description	9
2.2	Financial performance system	12
2.3	Business performance in fiscal year 2024	14
2.4	Results of operation	18
2.5	Net assets, liabilities and equity	26
2.6	Financial position	28
2.7	Report on expected developments	32
2.8	Report on the internal control and risk	35
	management system and material risks and
	opportunities
2.9	Explanations to the Financial Statements of	45
	Siemens Energy AG (Holding)
2.10	Group non-financial statement	49
2.11	Takeover-relevant information	82
2.12	Further information	85

9 Combined Management Report

2.1 Business description

2.1.1 Organization and reporting structure

Siemens Energy AG, parent company of the Siemens Energy Group ('Siemens Energy', 'the Group', 'the Company', or 'we') and registered in Munich, is a Stock Corporation (Aktiengesellschaft) in accordance with German law. The Executive Board of Siemens Energy AG is the body with overall responsibility for the management of the business in accordance with the German Stock Corporation Act (Aktiengesetz).

Siemens Energy's reporting structure in fiscal year 2024 comprises four Business Areas: Gas Services (GS), Grid Technologies (GT), Transformation of Industry (TI) and our Wind Power business Siemens Gamesa (SG). GS, GT and SG are reportable segments; TI will report voluntarily as if it were a reportable segment despite some differences in its economic characteristics (all the aforementioned are hereinafter referred to as segments).

Reconciliation to Consolidated Financial Statements includes items which management does not consider to be indicative of the segments' performance, mainly group management costs (management and corporate functions), other central items, treasury activities as well as eliminations. Other central items include Siemens brand fees, corporate services (e.g., management of the Group's real estate portfolio except SG), corporate projects, centrally held equity interests and other items. For further information, see Note 25 Segment information in 3.6 Notes to Consolidated Financial Statements.

Siemens Energy supports its customers around the globe. The regional breakdown used for reporting purposes by Siemens Energy is EMEA (Europe, Commonwealth of Independent States (C.I.S), the Middle East and Africa), Americas (Canada, the United States as well as Central and South America), and Asia, Australia (the remaining countries of the Asian continent, as well as Australia and New Zealand).

2.1.2 Business model

Siemens Energy is active along the entire energy technology and service value chain with comprehensive and differentiated products, solutions and service offerings. Our broad product portfolio, comprising efficient conventional as well as renewable energies, enables us to meet the increasing demand for energy and support efforts to reduce greenhouse gas emissions at the same time. We also offer digital b usiness and intelligent service models to our customers. We consider ourselves well positioned to shape the energy transition toward decarbonized energy technologies and promptly react to customer needs worldwide thanks to our global footprint.

Siemens Energy has not participated in any new tenders for pure coal-fired power plants since November 2020. Siemens Energy will still fulfill existing commitments for coal-fired power plant projects and the associated service contracts. The carbon-reducing service and solutions businesses, as well as combined heat and power (CHP) projects will also be continued.

A significant share of our business is executed via high-volume projects and characterized by multi-year customer orders, especially in our service and solutions businesses. While orders for large projects may lead to volatility in order intake from one reporting period to the next, revenue is generally less affected by such volatility. Large projects typically have longer development and construction phases. This, coupled with our often long-term service contracts, leads to stable and recurring revenue recognition over several reporting periods. Hence, our order backlog gives us a high degree of transparency regarding future revenues.

Our profitability level differs among our portfolio elements. Therefore, our results of operations are affected by the portfo lio mix sold in each segment. Our service business typically has higher margins than the product and solutions businesses. Hence, our results of operations and margins depend on our ability to generate revenue from servicing our large installed fleet by modernization and upgrades as it becomes subject to wear and tear, in particular the rotating equipment. We aim to maintain and expand the long lifespan of our installed fleet to secure orders for service contracts, primarily focusing on long-term service programs. We see the service business as a major pillar of the sustainable business success of Siemens Energy and are seeking to enlarge and leverage this further in the future.

Gas Services

The Gas Services Business Area consolidates all the business activities relating to gas and large steam turbines, large generators, and heat p umps, as well as the associated control technology. The GS portfolio includes products, solutions, and services for central and distributed power generation. The business is focused on producing new gas and steam turbines as well as servicing the installed fleet. The wide-ranging service portfolio includes maintenance, performance enhancements, digitalization, and professional consulting.

GS supports a wide range of customers, from utilities, independent power producers, municipal energy producers, EPC (engineering, procurement, and construction) companies to industrial customers and customers in the oil and gas industry. Data centers are increasingly becoming key customers for GS' products and services across its entire portfolio of gas and steam turbines.

Reliable, efficient, and low-emission turbines enable the integration of renewable energy into grids by delivering fast dispatchable power supplementing the fluctuating supplies from renewable energy sources. GS is contributing to the decarbonization of power generation and supporting the achievement of its customers' net zero targets. To this end, the capabilities of the gas turbine portfolio for burning hydrogen and other green fuels are continuously being expanded. Individual types of gas turbines have already been approved for burning up to 75% hydrogen. As part of an EU-funded project, the combustion of 100% renewable hydrogen was successfully demonstrated in a pilot plant in the calendar year 2023 and

Siemens Energy - Annual Report 2024

Combined Management Report 10

marks an important step on the way to the gradual decarbonization of the gas turbine portfolio. At the same time, carbon capture applications are being addressed via partnerships with key technology partners. The portfolio also includes other decarbonization technologies, such as heat pumps for industrial heat generation and district heating applications.

GS' competitors include a small number of multinational original equipment manufacturers (OEMs), some of which hold strong market positions in their home markets.

Grid Technologies

The Grid Technologies Business Area focuses its business activities on the most important market trends: demand growth of electricity, electrification, decarbonization, and digitalization. With the products, systems, solutions and services it offers, GT solves the challenges posed by the increasing complexity of grid infrastructure resulting from the integration of renewable energies and the trend towards decentralized energy generation. The product portfolio includes, among others, high-voltage direct current (HVDC) transmission systems, grid connections for offshore wind farms, flexible alternating current transmission systems (FACTS), high-voltage substations, air- and gas-insulated switchgear, transformers and storage solutions, as well as digital grid solutions, components and cyber security.

The GT Business Area serves a wide range of customers, including transmission and distribution system operators, independent power producers as well as industrial and infrastructure customers from sectors such as chemicals, mining, oil and gas, data center and airpo rt operators, railroad companies and hydrogen producers. GT supports its customers on the path to decarbonization with a high level of technological expertise, a global production network, its own sales organization and sales partners.

GT's competitors mainly include a small number of large multinational companies as well as manufacturers from China, South Korea, and Japan, which are currently more focused on individual regions, but are increasingly positioning themselves globally.

Transformation of Industry

The Transformation of Industry Business Area comprises four operating but non-reportable segments (Sustainable Energy Systems (SES); Electrification, Automation, Digitalization (EAD); Industrial Steam Turbines & Generators (STG); and Compression (CP)), which are presented voluntarily as if they were a single reportable segment, despite some differences in their economic characteristics. The Business Area's activities are focused primarily on reducing energy consumption and greenhouse gas emissions in industrial processes. TI supports industrial customers in reducing their carbon footprint and achieving their individual decarbonization targets. The Business Area offers products, integrated systems and solutions as well as services for various process industries (e.g., oil and gas, chemicals, petrochemicals, mining, steel, pulp and paper), hydrogen and power generation as well as for the offshore and maritime industry.

TI contributes to reducing energy consumption and greenhouse gas emissions of the industrial sector by focusing on increasing the energy efficiency of existing assets, electrifying industrial processes to enable conversion from fossil fuels to electricity, and by providing solutions to produce and transport green hydrogen and clean fuels. The TI portfolio includes electrolyzers, industrial steam turbines, industrial generators, turbo and reciprocating compressors, compressor trains, drive systems and solutions, batteries and fuel cells, as well as service and digital offerings for the entire portfolio. TI's service offerings seek to extend the lifespan and availability of products, especially of steam turbines and compressors. TI is also scaling several novel decarbonization technologies, such as heat recovery solutions, compressed air energy storage, special hydrogen compressors, and CO₂ compressors for separating, using, and storing carbon.

Overall, TI benefits from the rising demand for carbon-optimized energy technologies, the transition towards a hydrogen-based economy, as well as the electrification, automation, and digitalization of industry. Reducing industrial emissions requires investment in decarbonization solutions, the optimization, improvement, and modification of processes, and the reduction and use of volatile emissions.

TI's main competitors are OEMs, EPC suppliers, as well as entities of industrial enterprises and start -ups that focus on Cleantech and hydrogen solutions.

Siemens Gamesa

Our Wind Power business Siemens Gamesa focuses on the design, development, manufacturing, and installation of products, as well as on the provision of technologically advanced services in the renewable energy sector, with a focus on onshore and offshore wind turb ines for various wind conditions. Depending on customer requirements, the scope of involvement may include delivering either a full EPC project or, in some cases, just the supply of components for wind turbines. SG comprises the Wind Turbines (Onshore and Offshore) as well as Operation and Maintenance (Service) business fields.

SG offers the design, engineering, manufacturing, and installation of wind turbines based on both geared and direct drive technology. In addition, SG provides services for the operation and maintenance of windfarms by offering a comprehensive and flexible portfolio for the maintenance and optimization of wind turbines, thus covering the entire lifecycle. Complete asset management as well as technical support are offered for SG's wind turbines and expanded for third-party platforms.

Primary customers of SG are large utilities and independent power producers, as well as project developers. The onshore wind farm market is characterized by many different providers without a single company currently holding a dominant market share. The markets for offshore wind farms are served by a few experienced market players and are mainly driven by scale, technology as well as market access challenges.

SG's competitors are mainly a small number of large multinational companies, as well as manufacturers from China, which are b ecoming increasingly global.

Siemens Energy - Annual Report 2024