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    AR & Financial Statementsv30.09.2022

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    xijaban127

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    © All Rights Reserved
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    DocuSign Envelope IO: 84D14046-89FA-4C00-91C0-824C04802053, SIEMENS MOBILITY LIMITED Annual report and financial statements Registered number 00016033 September 30, 2022 Te *ACOCTKYE® 420 2910872028 a63 ‘COMPANIES HOUSE 'WEONESDAY DDocusign Envelope 10: 84014046-99FA-4C00-0160-824C04862053, SIEMENS MOBILITY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS. YEAR ENDED SEPTEMBER 30, 2022 ‘CONTENTS PAGE Strategic report Directors’ report 9 Statement of Directors’ Responsibilities in respect of the annual report and financial statements “ Independent Auditor's Report tothe members of Siemens Mobility Limited Is Statement of Income Statement of Comprehensive income 8 Statement of Financial Position 0 Statement of Cash Flows 21 Statement of Changes in Equity 2 [Notes tothe Financial Statements 4 DocuSign Envelope ID: 84014046. 69FA-4000-91CD-824C048C2053 SIEMENS MOBILITY LIMITED STRATEGIC REPORT YEAR ENDED SEPTEMBER 30, 2022 ‘The directors of Siemens Mobility Limited (‘the Company") present the annual report containing a strategic report, directors’ report and the financial statements for the year ended September 30,2022, Siemens Mobility Limited iso UK leader in wansport solutions and isan integral part ofthe broader, global Siemens organisation. The Company is constantly innovating its portfolio in its core areas of rolling stock, rail automation and electrification, turkey systems, as well as related services. Across its four technology levers, maximising network capacity, optimising customer experience and processes, offering 100% system aveilabilty and optimising the whole life cos of rolling stock and infrastructure, it ims to deliver sustainable, comfortable and cost-effective rail travel, This wil be further enabled by Xcelerator, our newly launched interoperable and connected ecosystem. Siemens Mobility Limited has around 30 locations UK-wide, This includes several existing transpor-focused manufacturing sites including Chippenham (the UK's only remaining rail signalling and contol manufacturing facility), Ashby (communications and contol. systems manufacturing) and Poole (manufacturing tain cab radios forthe entire UK ral fleet). These sites provide products for export in addition to ‘manufacturing forthe UK market. The Company also owns / operates a significant numberof rail maintenance depos, a bogie service centre in Lincoln, a rail action drives operation in Leeds and continues building a state-of-the-art manufacturing facility in Goole, East Riding of Yorkshire. ‘Additionally, the Company is a 50 per cent shareholder in NTAR (National Training Academy for Rail) in Northampton. In the UK, Siemens ‘Mobility Limited maintains the largest volume of Siemens rolling stock in the world, wih its 450+ tain clocking up many millions of miles in passenger service every year “The Company is a signifieant UK employer. tn fiscal year 2022, which ended on 30 September 2022, Siemens Mobility Limited employed approximately 5,500 people inthe UK including both employees and third-party workers of which 320 were a apprentice, intem or graduate evel General business review Siemens Moblity's activities continue to play a pivotal roe in keeping Britain's rail network moving. Post pandemic we have implemented our ‘mobile-working policy guided by the global Siemens AG approach, with employees encouraged to work from home or other remote locations 2- 5 days per week. This has enabled the organisstion to focus on outcomes, sustainability and productivity rather than time spent at office locations. During 2022 we achieved the Investors in People Gold award across the whole of Siemens Mobility Decarbonisation ofthe transport sector has continued tobe an industry priority with CO: emission levels rising again as lockdowns ceased. The ‘COP 26 summit that ook place in Glasgow in November 2021 and more recently the InnoTrans trade show in Berlin in September 2022 provided 2 real opportunity for Siemens Mobility to showease its credentials in this area and continued to publicly push for decarbonsation of the transport ‘sector further and faster to help meet the Government's net zero targets. There continues tobe real interest in the potential of electric rad systems, ‘llighway, which could see HOVs powered by pantograph on motorways and trunk roads. In November 2022, Siemens Mobility shared is plans ‘for 8 new sustainable train forthe UK marke, the Desito Verve which willbe available as electric, battery, and hydrogen versions. It will help select suitable accounting policies in accordance with IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors and then apply them consistently; ‘make judgements end accountng estimates that are reasonable and prudent; present information, including accounting polices, in a manner that provides relevant, reliable, comparable and understandable fnformation; provide additional disclosures when compliance with the specifi requirements in IASs is insufficient to enable users to understand ‘the impact of particular tanseetions, other events and conditions onthe Company's financial position and financial performance; state thatthe Company has complied with UK-adopted LASs, subject to any material departures disclosed and explained in the financial slalements; and prepare the financial statements on the going concem basis unless it is appropriate to presume thatthe Company will not continue in business. ‘The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable sccuraey at any time the financial postion ofthe Company and enable them to ensure thatthe financial statements comply ‘with the Companies Act 2006, They are responsible for safeguarding the assets of the Company and hence for taking reasonable steps forthe prevention and detetion of fraud and other itegulartes 4 DocuSign Envolope 0: 84014046-99FA-4C00-91C0-824C048C2053 SIEMENS MOBILITY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SIEMENS MOBILITY LIMITED ‘YEAR ENDED SEPTEMBER 30, 2022 Opinion We have audited the financial statements of Siemens Mobility Limited forthe year ended 30 September 2022 which comprise the Statement of Income, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity andthe related notes | to 36, including a summary of significant accountng policies. The financial reporting framework that has been applied in thei preparation is applicable law and UK adopted international accounting standards. {In our opinion, the financial statements; ‘+ give a true and fair view of the company's affairs as at 30 September 2022 and of its profit forthe year then ended; ‘+ have been propery prepared in accordance with UK adopted international accounting Standards; and ‘+ have been prepared in accordance withthe requirements of the Companies Act 2006, Basis for opinion ‘We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAs (UK) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities forthe audit of the financial statements section of our report. We are independent of the company in accordance with the ehical requirements that are relevant to our audit ofthe financial statemens in the UK, inchiding the FRC's Ethial Standard as applied to other entities of public interest, and we have fulfilled our other ethical responsibilities it socordance with these requirements, We believe tat the audit evidence we have obtain is sufficient and appropriate to provide a basis for our opinion Conclusions relating to going concern In auditing the financial statements, we have concluded that the diectors use of the going concern basis of accounting in the preparation ofthe financial statements is appropriate. Our evaluation of the directors’ assessment ofthe company's ability to continue t0 adopt the going concem basis of accountng include! “+ We confirmed our understanding of management's going concer assessment process and engaged with management early to ensure that relevant key factors were identified and considered i its assessment, ‘+ We obiained management's going concem assessment, which covers the period to 31 March 2024; “+ Wetested the factors and assumptions included inthe cashflow forecast, considered the appropriateness ofthe methods used to calculate the cash flow forecast and determined through inspection and testing of the methodology, integrity of the model and calculations that the methods utilised were appropriately sophisticaved tobe able to make an assessment forthe entity; + Weinspected the company’s cash pooling arrangement, operated by Siemens AG, to consider whether the company has an unconditional right to aceess cash trough the going concem period and evaluated management's assessment of Siemens AG's ability to provide such cash through the going concern period; and ‘We ead the company’s going concem disclosures included inthe annual report in order to asses thatthe disclosures were appropriate and in conformity with the reporting standard. [Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cas significant doubt oa the company's ability to continue as a going concer for a period to 31 March 2024. ur responsibilities and the responsibilities ofthe ditectors with respect to going concem are described inthe relevant sections ofthis report. However, because no all future events or eonitions can be predicted, this statement isnot a guarantee as to the company’s ability fo continue a5 ‘going concern, Other information “The ater information comprises the information included inthe annual repos, oher than the financial statements and our auditor's report thereon. ‘The diectors are responsible forthe ather information contained within the annual report. (Our opinion on the financial statements does not cover the ether information and, excep to the extent otherwise explicitly stated inthis report, we donot express any form of assurance conclusion thereon, ‘Our responsibility isto read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially mistated. IF we identify such ‘material inconsistencies or apparent material msslatements, we ae requized to determine whether this gives rise toa material misstatement inthe financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact, ‘We have nothing to report inthis regard Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken inthe course ofthe audit ‘the information given in the strategic report and the directors’ report forthe financial year for which the financial statements ae prepared {is consistent with the financial statements; and ‘the strategic report and directors report have been prepared in accordance with applicable legal requirements 15 DocuSign Envelope ID: 84014046-09F A-4C00-81C0-824C04862053 SIEMENS MOBILITY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SIEMENS MOBILITY LIMITED YEAR ENDED SEPTEMBER 30, 2022 “Matters on which we are required to report by exception Inthe light ofthe knowledge and understanding of the company and its environment obtained in the course of the audi, we have not identified ‘material misstatemenis in the strategic eport or diector”repor. ‘We have nothing to report in respect of te following matter in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: + adequate accounting records have not been kept, or returns adequate for ou audit have not been received from branches not visited by ‘the financial statements are notin agreement with the accounting records and returns; or ‘certain disclosures of directors’ remuneration specified by law are not made; oF ‘© we have not received all the information and explanations we require for our audit. Responsibilities of directors {As explained mare fly in the directors" responsibilities statement set out on page 14, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a rue and fair view, and fr sul internal coatrlas the itectors determine is necessary to enable the preparation of financial statements that ae fee from material misstatement, whether due to fraud or enor In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as 2 going concer, disclosing, 4s applicable, matters related fo going concer and using the going concer basis of accounting unless the directors either intend to liquidate the ‘company 0: fo cease operations, or have no realistic altemative bu to do so, Auditor's responsibilities forthe audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are fice from material misstatement, whether ‘due to fraud or eror, and to issue an auditor's report that includes our opinion. Reasonable assurance isa high level of assurance, but is nota [Bvarante that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when i exist. Misstatoments can arise from fraud or ezor and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the ‘economic decisions of users taken onthe basis ofthese financial statements Explanation as to what extent the audit was considered capable of detecting frregularites including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, ullined above, to detect irregularities, including faud. The risk of not detecting a material misstatement duc to fraud is higher than the risk of not detecting one resulting from error, a8 fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, o¢ through collusion. The extent to which our procedure are capable of detecting iregularites, including frau is derailed below. However, the primary esponsibility for the prevention and detection of aud rests with both those charged with governance ofthe entity and management. ‘+ We obtained an understanding of the legal and regulatory frameworks that are applicable tothe company and determined thatthe most significant are those that relate tothe reposting framework (UK adopted international accounting standards and the Companies Act 2006) land the relevant direct and indirect tax compliance regulations inthe United Kingdom. In addition, the company has to comply with laws and regulations including health and safety, employees, data protection and ant-bribery and corruption. ‘+ We understood how the company is complying with those frameworks by making enquiries of management and those charged with _govemance t understand how the company maintains and communicates its policies and procedures in these areas and corroborated this by eading supporting documentation, We also read correspondence wit relevant authorities, + We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by considering the risk of management override and by assuming revenuc tobe a fraud risk, We incorporated data analytics ito our testing ‘of manual journals and revenue recognition. We tested specific transactions back to source documentation or independent confirmation, ensuring appropriate authorisation of the wanssctions. For revenue recognised over time we inspected contracts with customers, censidered management's estimates of costs to complete each contract and checked that revenue had been corectly calculated based on the percentage of completion method ‘© Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved testing joumals identified by specifi risk criteria, ‘A further description of our responsibilities forthe auit of the financial statements i locted on the Financial Reporting Council's website at hitps/vww. fre org ub/auditorsresponsibilitis. Tis description forms part of our auditor's report Use of our report ‘This repor is made solely tothe company’s members as a body, in accordance with Chapter 3 of Part 6 ofthe Companies Act 2006. Our audit \work a been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report, and for no other purpose. To the fullest extent permitted by laws, we do not acceptor assume responsibilty to anyone other than the company and the company's members asa body, for our audit war, for this report, o¢ forthe opinions we have formed. oeomer Entel lt Jon Kilngey (Senior statory ator) forand on behalf of Emst& Young LLP, Stttory Auditor Landon ate: March 27,2003 Docusign Envelope ID: 84014046-99FA-4C00-91CD-624C048C2053 SIEMENS MOBILITY LIMITED STATEMENT OF INCOME. For the years ended September 30, 2022 and 2021 (in thousands of £) Note Revenue 4 Cost of sales Gross profit Research and development expenses Marketing and distribution expenses ‘Administrative expenses Other operating expenses 6 Operating profit s Interest income Interest expense Interest expense from pension plans and similar ommitments, net Income from investments Income from continuing operations before income taxes Income tax expenses 0 Income from continuing operations, net of tx Income from discontinued operations, net of tax 3 Net income for the financial year 2022 £0005 1024340 (829,260) 195,080 (19515) 1,718) 35,002) (os) 1172220 5,905 (133) 73) 255 122,374 24039) 98,335 45,467 143,802 2021 £70005 79971 (632,748) 167,223 (10,228) 20,363) 1,52, (son) 104,607 2,649 437) 064) 105,755 48,900) 86,885 13,588 100,443 DocuSign Envelope ID: 84D14046-99FA-4C00-91C0-824C04802053, ‘SIEMENS MOBILITY LIMITED ‘STATEMENT OF COMPREHENSIVE INCOME For the years ended September 30, 2022 and 2021 (in thousands of £) Note Net income for the financial year tems that will not be reclassified to profit o lass Remeasurements of defined benefit plans losses 25 Deferred tax (charge) on remeasurement gains Deferred tax rate change adjustment ‘Total items that will not be rect ied to profit or loss Items that may be reclassified subsequently to profit or loss Gains (Losses) on derivative financial instruments 31 Deferred tx (charge) credit on Gains (losses) on derivative nancial instruments Deferred tax rate change adjustment ‘Total items that may be reclassified subsequently to profit or loss Other comprehensive income, net of income taxes Total comprehensive income Atsibutble to: Owners ofthe Company 2 0005 143,802 113263 28316) 84947 4268 4,067) 3,201 88,148, 231,980 231,950 2021 £0008 100443 19,739 750) a 16,200 (6442) 1a 264 (49s) 11246 111,689 111,689 Docusign Envelope 1D: £4014046-S9FA-4C00-9160-824C048C2053 SIEMENS MOBILITY LIMITED STATEMENT OF FINANCIAL POSITION As of September 30, 2022 and 2021 (in thousands of £) Note 2m 2021 £70008 £°0003 ASSETS Cash and cash equivalents 450 37 ‘Trade and other receivables 4u 458,098, 326,045 (Other curent Financial assets 2 16,182 12938 Contract assets 43 60,966 73,085 Inventories 14 131,109 104,149 (Other current assets 1s a4 470 Asses classified a held for disposal 3 5 178238 Total current assets 684,929 699,212 Goodwitt 16 660,576 660,576 Other ineangible assets ” 3472 3,857 Property, plant end equipment 18 102,276 77,356 Rightof-use assets 19 26,393 32,705 Investments 20 : : Other financial assets 2 53,641 50,781 Pension plans and similar assets 2 oni 3,830 Deferred tax assets 0 : 6,600 Other assets n 55 Total non-current assets 910,497 840,760 ‘Total asets 1595426 1,839,972 LIABILITIES AND EQUITY ‘Trade and other payables 2 108,047 741 Other eurent financial linbilities 2 1,553 1,351 Contract bilities 413 319,136 293,489 Current provisions 26 10,095 10,715 (Current income tax liabilities 10 41341 21,194 Lease liabilities 19 7,286 9.275 Other current ibilities 24 98,325 107,830 Liabilities associated with assets classified as held for disposal 3 7 38,036 ‘Total current tabiliies 586,253 552,931 Post employment benefits 25 a 57251 Provisions 26 144s 14523 Lease liabilities 9 20,437 22873 Deferred tax liabilities 10 25,190 . Other liabilities n 1,900 1861 Total non-current liabilities 61,670 96,488 Total liabilities 647903 649,419 DDocusign Envelope 1D: 84D14046-99FA-4C00-91C0-824C04BC2053 SIEMENS MOBILITY LIMITED. STATEMENT OF FINANCIAL POSITION As of September 30, 2022 and 2021 (in thousands of £) Note Equity Share capital 8 Cash flow hedging reserve Retained eamings Total equity ‘Total liabilities and equity 1 22 £7000 541,358 09 406,243 947,503, 595,426 2021 £0008 541,358 299) 382,494 890,553 41839972 “These financial statements were epproved and authorised for issue by the Board of Divectors on March 27, 2023 and were signed on their behalf by Wwe Sa ina arco $30wen Director Registered number: 00016033 Siemens Mobility Limited 20 Docusign Envelope 1: 8¢014046-99FA-4C00-91CD-824C048C2053 SIEMENS MOBILITY LIMITED ‘STATEMENT OF CASH FLOWS For the years ended September 30, 2022 and 2021 (in thousands of) Note 2022 2021 2000s £0008, Cash flows from operating activities Net income forthe financial year 143802 100,443 ‘Adjustments to reconcile net income to cashflows from operating activities Depreciation and amortisation 5,17,18,19 15622 18,582 Income tax expenses 10 24039 22,088 Interest income 9 677) @212) Defined benefit pension charge in Statement of Income 2s 7,658 7263 LLoss on disposal of property, plant and equipment, net 6 6 405 Impairment of intangible assets and property, plant and equipment 517,18 a E Other non-cash expenses(income) 4269 (6482) Gain on sale of operations (45,467) : Operating profit before changes in working capital and provisions 144204 140,097 ‘Changes in assets and liabilities -319=Inventories (26,960) (15,124) Contract assets 20,159 ‘Trade and other receivables 1,508 4128 Other curent assets (6648) 10,835, ‘Trade payables and accrued expenses 33,610 14,187 Contract liabilities 25647 33,317 Curent provisions (620) 3,098) Other curent liabilities 685) 1,708 Long term assets 2.833.949) Long term liabilities a) 5,964 Cash generated fom operations 1702 209,229 Research and Development tax ereit 5) (645) Income taxes paid = 26503) Ierest received sm 2212 Defined benefit pension contributions paid 25 42 667) ‘Cash flows from operating activities 17,17 178,616 Cash lows from investing activities Additions to intangible assets and property, plant and equipment 17,18 62,696 (26,807) Disposal of intangibles and property, plant end equipment IIs 8 : Disposal of business 185,390 : Cash flows from investing activities 152,702 (26,807) 2 DDocuSign Envelope 1D: 84014046-89F A-4C00-21C0-824C048C2053 SIEMENS MOBILITY LIMITED ‘STATEMENT OF CASH FLOWS For the years ended September 30, 2022 and 2021 (in thousands off) 2022 2021 Note £000 £70005 Cash flows from financing activites Change in financing from other group companies 11,23 (140,799) @21,742) Principal elements of ease payments 19 (75662) (13,628) Dividends paid 36 (175,000) (116969) ‘Cash flows from financing activities 23,461) (152,339) ‘Change in eash and cash equivalents, 413 30) (Cash and eash equivalents at the beginning of the year 37 867 ‘Cash and cash equivalents at the end of the year 450 37 The cash flow statement above reflects the movements from continuing and discontinued operations. In 2021 the Company reclassified the Intelligent Traffic Systems business as discontinued operations. The cash and eash equivalents balance as at September 30, 2021 within this, business was Eni (ge note 3). The significant movements fr the Intelligent Trafic Systems business included inthe above eash flow statement were as follows: 20 2021 £0005 £000 ‘Cash flows from operating activities discontinued operations : 18,728, ‘Cash flows from investing activities ~ discontinued operations 185,390 «40 Cash flows from financing activities ~ discontinued operations : (4,601) Siemens AG operates a cash pooling facility across its worldwide group. Cash balances generated by entities are passed to Siemens AG and. Companies are able to draw down on these facilities if required. Therefore, apart from any accounts held with loeal banks, amounts invested ‘withdeaum dawn from the Siemens AG accounts are shown as an intercompany balance. Changes in the balances on these facilities are included in cash flows from financing activites in the Statement of Cash Flows. An increase in cash tht is loaned to the cash pool is shown as a cash ‘outflow from financing activities, and an increase in cash borrowed from the cash pool is shown a a cash inflow from financing activites, ‘Also included within the change in financing from ather group companies are the balances due from other group companies arising from loans to ‘other group companies. n DocusSign Envelope 1D: 84014046-89FA-4C00-91C0-824C048C2053, SIEMENS MOBILITY LIMITED STATEMENT OF CHANGES IN EQUITY For the years ended September 30, 2022 and 2021 (in thousands of £) Brought forward October 1, 2020, Net income forthe financial year (Other comprehensive income, net of income taxes ‘Total comprehensive income for the financial year Equity settled share-based payments Recharge from ulkimate parent undertaking Dividends paid Balance at September 30, 2021 [Brought forward October 1, 2021 Net income forthe financial year (Other comprehensive income, net oFincome taxes Total comprehensive income forthe financial year Equity settled share-based payments Recharge from ukimate parent undertaking Dividends paid Balance at September 30, 2022 ‘Cash Mow hedging reserve Share capital £°000s 541,388 541,358 541,358 541,358 Capital Cashflow Retained Total contribution £70005 1,408 1408) hedging £0003 14688 4988) 49s 6299) 6,299) 3201 3201 ‘earnings equity £70008 £70005, 352,820 895,833 100,443 100,843, 16200 11,246 116643 111,689, - WaT - ann (116,969) (116,969) 352,494 890,553 352,494 890,553 143,802 143,802 84947 88,148, 228,749 231,950 = 1808 = 408) (175,000) (175,000) 406,243 947,503 ‘The hedging reserve comprises the effective portion ofthe cumulative net change in fair value of eash flow hedging transactions related to hedged transactions that have not yet occurred. Capital contribution reserve Certain directors and senior managers oF the Company are eligible for share options and stock awards and all employees are eligible to join the shaze matching plan inthe ulimate parent undertaking, Siemens AG. These share options are awarded directly by the ultimate parent undertaking, ‘who requires the Company to make 2 payment (equal tothe fair value ofthe options at grant date or the costs incurred by the ultimate parent undertaking, depending onthe grant date) to reimburse it forthe granting ofthese rights. The capital eantribution reserve is used to recognise the Companys share-based paymeat expense in respect ofthe share matching plan, The payments made to Siemens AG are deducted from this reserve to the extent that the costs have sleady been recognised. Any additional payments are charged directly tothe Statement of Income. Other comprehensive income ‘Other comprehensive income is allocated to retained earings with the exception of gains of £3,201k (2021: losses of £4,9S4k), which relates to ‘gins (2021; losses) on derivative financit instruments. This is allocated tothe cash Now hedging reserve. 2 DDocuSign Envelope 1D: 84014046-09F A 4C00-91C0-824C048C2053 ‘SIEMENS MOBILITY LIMITED NOTES TO THE FINANCIAL STATEMENTS: For the years ended September 30, 2022 and 2021 (in thousands of £) 1. Basis of presentation ‘The accompanying financial statements present the operations of the Company and have been prepared and approved bythe directors in accordance \with UK-adopted international accounting standards . The financial statements were authorised for issue by the Board of Directors on March 27, 2023. The financial statements are generally prepared on th historical eost basis, except as sated in ote 2 Siemens Mobility Limited has prepared and reported its financial statements in Great British Pounds (GBP or £) and the financial information is Gisclosed in thousands of£, except where sited otherwise. k’ denotes thousands of € and ‘m' denotes millions of £. The Company is @ United Kingdom based company incorporated in England and Wales and its principal activity is to shape connected mobility through the design, ‘manufacture, installation and maintenance of railway signaling systems, passenger transportation systems, traffic management and associated systems and rail electrification. With digtalistion, the Company enables mobility operators worldwide to make tains and infrastructure intelligent, ineease value sustainably overt entire life cycle, enhance passenger experience and guarantee availablily. ‘The Company applied all standards and interpretations issued bythe International Accounting Standards Board CLASB) that were effective as of September 30, 2022 In these financial statements, the term ‘group’ refers o all companies for whom the ultimate parent undertaking is Siemens 'AG, The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial Statements. Going Concern — The directors have performed a detailed review ofthe Company's cash flow foresass, including severe downside scenarios, and consider thatthe Company wil have sufficient funds available over the going concern period to March 31, 2024 to meet its liabilities as they fall due, subject ois ability to acess the Siemens AG cash pooling facility described below. ‘The Directors continue to closely monitor and assess the progression of the Pandemic to identify emerging business risks and to update response plans accordingly ‘Siemens AG operates a cash pooling facility acros its worldwide group. Cash generated by the Company is passed to other Siemens AG group ‘companies, The Companys then able to draw down oa these balances, if required. The Company has set out its financial isk management policies, including management of liquidity, in note 31 tothe accounts, Te Company is reliant on its ability 1 continue to access this cash pooling facility inorder to maect its liabilities as they fll due over the going. concern period through to March 31,2024. The Directors have considered the Company's rights under the cash pooling agreement and have made enguris of the management af Siemens AG to satisfy themselves thatthe Company has an unconditional right to secess this cash through the going concern period and that Siemens AG will have sufficient liquidity through the going concern period to provide cash under this agreement ‘when require. Based on their assessment of the Company's financial position, future performance, liquidity and risks and the Siemens AG cash pooling arrangement, the directors have a reasonable expectation thatthe Company has adequate resources to continue in operational existence through 10 March 31, 2026, Thus, the Compiny coatinues to adopt the going concem basis of accounting. 2, Summary of significant accounting policies and critical accounting estimates Business combinations — Business combinations (other than those from Siemens group companies) are accounted for under the acquisition ‘method. The Company a the acquirer end the acquiree may have a relationship that existe before they contemplated the business combination, referred to as a pre-existing eelationship. IF the business combination in effect setles a pre-existing relationship, the Company as the acquirer ecoprises again or loss fr the pre-existing relationship. The cos of an acquisition is measured athe fc value ofthe assets given and lablities incurred or assumed atthe date of exchange. Any contingent consideration to be transferred by tue Company as the acquirer will be recognised at {ie value atthe acquisition date. Subsequent changes tothe fir value ofthe contingent consideration tat is deemed tobe an asset or lability will, be recognised ether in profit or loss or a8 a change to other comprehensive income. Ifthe contingent consideration is classified as equity it will not be remeasured; subsequent settlement is accounted for within equity. Aequistion-elated costs are expensed in the peti incured. Identifiable asses acquired and labltes assumed in a business combination (including contingent liabilities) are measured initially a ther fair values a the acquisition date, respective ofthe extent of any non-contolling interest. Non-contolling interests are measured atthe proportional fair value of | assets acquired and liabilities assumed (partial goodwill method). If there is no loss of control, transactions with noa-contwolling interests are accounted for as equity tansactions not affecting the Statement of income. At the date contol i lost, any retained equity interests are remeasured (o far value Discontinued operations and non-current assets held for disposal - Discontinued operations are reported when a component of an entity is classified as held for disposal or is disposed of, ifthe component represents a separate major line of business or geographical area of operations and is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations. Inthe Statement of Income, incame (Iss) from discontinued operations is reported separately from income and expenses from continuing operations; prior periods are presented on a comparable bass. Inthe Statement of Cash Flow, the cash flows from discontinued operations are presented separately from cash flows of continuing operations; prior periods are presented on a comparable basis ‘The Company classifies a non-current asset ora disposal group (outside discontinued operations) as held for disposal ifits carrying amount will be recovered principally through a sale transaction rather than through cootiquing Use [Non-curtent assets clasified as held for disposal and disposal groups are measured a the lower of their carrying amount and fir value less costs to sell, Depreciation and amontsation ceases, The determination ofthe far value less costs to sell includes the use of estimated and assumptions ‘that tend tobe uncertain A disposal group may include an allocation of goodwill ifthe component held for disposal forms part ofa cash generating unt to which goodwill is allocated. Goodwill is apportioned taking into account the fair value less cost to sll of the component held for disposal asa proportion ofthe fair valueless costo sel ofthe cash generating uit. The fair value i usually measured onthe bass of discounted cash lows, unless an observable price is available. 4 Docusign Envelope IO: 84D14046-89FA-4000-9160-824C04802053, SIEMENS MOBILITY LIMITED NOTES TO THE FINANCIAL STATEMENTS For the years ended September 30, 2022 and 2021 (in thousands of £) Foreign curreney transactions — Transactions that are denominated in a curency other than the functional curency of an entity, are recorded at that functional currency applying the spot exchange rte atthe date when the underlying transactions are intially recognised. At the end ofthe reporting period, foreign currency-denominated monetary assets and liabilities are revalued o functional currency applying the spot exchange rate prevailing a that date. Gains and losses arising from these foreign curency revaluaions are recognised in the Statement of Income. Those foreign ‘currency denominated ansactions which ae classified as non-monetary are remeasuced using the historical spot exchange rate Revenue recognition - The Company recognises revenue, when or a8 control aver dstint goods or service is transfered to the customer, ie ‘when the customer is able to diect the use ofthe transferred goods or services and obtains substantially all ofthe remaining benefits, provided a contract with enforceable right and obligations exists and amongst others collectabilty of consideration is probable taking into account our customer's creditworthiness. Revenue is the transaction price the Company expects to be entitled to. Variable consideration is included inthe transaction price if is highly probable that a significant reversal of revenue will not oceur ance associated uncertainties are resolved. The amount of variable consideration is cleulated by either using the expected value or the most likely amount depending on which is expected to beter predict the amount of variable consideration. Consideration is adjusted forthe time value of money ifthe peri between the transfer of goods or Services and the receipt of payment exceeds bwelve months and there is significant financing benefit either tothe customer or the Company. Ifa contract contains more than one dstinet good or service, the transaction price i allocated to each performance obligation based on relative sland- Alone selling prices. IP stand-alone selling prices are nat observable, the Company reasonably estimates those. Revenue is recognised for each performance obligation either at point in time or over time. Sales from construction-type contracts: Revenues are recognised overtime under the percentage-of-completion method, based on the percentage ‘of casts incured to date compared to total estimated costs. An expected loss onthe contract is recognised as an expense immediately. Payment terms are usually 30 days from the date of invoice issued according to the contractual tenn. “The percentage-of-completion method places considerable importance on accurate estimates of the extent of progress towards completion and ray involve estimates on the scope of deliveries and services required for fulfilling the contractually defined obligations. These significant estimates include ‘ola estimated costs, total estimated revenues, contract risks, including technical, political and regulatory risks, and other judgments, Under the percentage-of-completion method, changes in estimates may lead to an increase or decrease of revenve. In addition, the Company needs to assess whether the contract is expected to continue orto be terminated, In determining whether the continuation or termination ‘of a contract is expected fo be the mos ikely scenario, all relevant facts and circumstances relating tothe contract are considered onan individual basis. Revenues from services: Revenues are recognised overtime ona straight-line basis or, ifthe performance pater is other than straight-line, as services are provided, ie. under the percentage-of-completion method as described above. Payment terms are usually 30 days from the date of invoice issued according tothe conractal terms, Sale of goods: Revenues are recognised ata point in time when contol of the goods passes to the buyer, usually upon delivery ofthe goods. Tavoices are issued at that point in time and are usually payable within 30 days. For licensing tansactions granting the customer aright to use the ‘Company's intellectual property, payment tems ae usually 30 days from the date of invoice issued according to the contractual tems. [Income from lease arrangements: Operating lease income for equipment rentals is recognised on a straight-line basis over the lease term. An arrangement that isnot in the legal form of a Tease is accounted for as lease if i is dependent on the use ofa specific asset or assets and the arrangement conveys aright (use the asset. Receivables from finance leases, in which the Compeny asthe lessor transfers substantially al the risks and rewards incidental to ovmership to the customer are recognised at an amount equal to the net investment in the lease, Finance income is subsequently recognised based on a patter reflecting a constant periodic rate of return on the net investment using the effective interest rate method. A selling profit component on ‘manufacturing leases is recognised based onthe policies fr outright sales. Profi rom sale and leaseback transactions is recognised immediately ifsignificant risks and rewards of ownership have pasted tothe buyer, the leaseback resuls in an operating lease and the transaction i established at fair value. Lease incentives and inital costs are amortised on a stright line basis over the lease term and receipts that were not fixed at lease inception are booked as income when earned. Surrender premiums received inthe period are included in ental income, Revenue from wiles is recognised when the services are delivered wo the tenant. Income from interest - Interest is recognised using the effective inerestrate method, Income from royalties - Royalties are recognised on an accrual bassin accordance with the substance of the relevant agreement ‘Government grants - Goverament grants are recogaised when theres reasonable assurance thatthe conditions atached othe grants are complied with andthe grants willbe received. Grants awarded forthe purchase or the production of fixed assets (grants related to assets) are generally offs against the acquisition or production costs ofthe respective assets and reduce future depreciations accordingly. Grants awarded for ther than non- Curent assets (grants related to income) ae reported inthe Stalement of Ineame under the same funetional area asthe coresponding expenses. ‘They are recognised as income over the periods necessary to match them on a systematic basis to the costs that are intended to be compensated. ovement ants for future expenses are recorded as deferred income, Producterelated expenses - Provisions for estimated cots related o product waranlis ae recorded in Cost of sales at the time the elated sale is recognised. Research and development costs - Costs of research activities ae expensed as incurred. 2s DDocuSign Envelope ID: £4014046-99FA-4C00-91C0-824C04862059 SIEMENS MOBILITY LIMITED NOTES TO THE FINANCIAL STATEMENTS For the years ended September 30, 2022 and 2021 (in thousands of £) Cost for development activities are capitalised when the recognition criteria in IAS 38 are met. Captalised development costs are sated at cost less accumulated amortisation and impairment losses with an amortisation period of generally three fo ten years, nvestments - Investments are stated at their historical cost to the Company, less provisions for any impairment. The determination of the recoverable amount of an investment involves the use of estimates by management. The Company uses discounted cash flow-based methods applied tothe cash-generating wit underlying the investment, These discounted cash flow calculations typcelly use five-year projections that are ‘based on the financial plans. Cashflow projections consider past experience and represent management's best estimate about future development. Cash flows after the planning period are extrapolated using individual growth rates. Key assumptions which management has based its

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