AIXTRON

AIXTRON operates a two-tier German board structure. At the reporting date the Executive Board comprised two male members: Chairman Dr. Felix Grawert and CFO Dr. Christian Danninger. The Supervisory Board has six non-executive members (Chairman Kim Schindelhauer plus Frits van Hout, Alexander Everke, Karen Florschuetz, Dr. Stefan Traeger and Prof. Dr. Anna Weber) and is 100% independent. Employees are not represented on the Supervisory Board but are represented by the Works Council. Across the eight management and supervisory members, 75% are male and 25% female, a 1:3 ratio. The Executive Board bears overall responsibility for sustainability; CFO Dr. Christian Danninger monitors, manages and oversees impacts, risks and opportunities, advised by the ESG & Sustainability and Group Finance departments and a sustainability working group drawn from specialist functions (innovation, technology, energy management, HR, works council, compliance, quality, purchasing). The Audit Committee (Prof. Dr. Anna Weber as Chair, Schindelhauer and Everke) exercises the Supervisory Board's control function; it is informed quarterly while the CFO is briefed weekly. Cornerstones are set in the ESG guideline. Sustainability expertise is maintained through training and consultancy support.

The sustainability team informs the CFO weekly about the status of material impacts, risks and opportunities, and further controls have been built into the internal control system to ensure accuracy of reported information. At the quarterly Audit Committee meetings, the Executive Board informs the Committee about material impacts, risks and opportunities, the implementation of sustainability due diligence, and the results and effectiveness of the concepts, measures, key figures and targets adopted. AIXTRON's integrated sustainability report is submitted to the Audit Committee for review and to the Supervisory Board for final approval. Material impacts, risks and opportunities are addressed by both the Executive Board and the Audit Committee. As the management body, the Executive Board considers these effects when making important decisions; resolution proposals are presented in writing in advance and supported by documentation showing associated impacts, risks and opportunities and possible alternatives. Identified material impacts, risks and opportunities are coordinated with risk management, and trade-offs are reflected through newly defined targets for Executive Board remuneration. A list of the material impacts and opportunities addressed appears in the SBM-3 section.

Sustainability targets are integrated into the long-term incentive (LTI), the long-term performance-related variable component of Executive Board remuneration. Alongside consolidated net income and total shareholder return (TSR), the LTI weighting is 50% Group net profit, 40% TSR and 10% sustainability targets. From 2025 the weighting shifts to 35% Group net profit, 50% TSR and 15% sustainability targets. The Supervisory Board sets two to three sustainability targets per Executive Board member before each financial year, covering environment, social and good corporate governance; possible targets include efficient use of energy and raw materials, emissions reduction, employee satisfaction and development, customer satisfaction, innovation performance, succession planning and compliance. Target achievement is capped at 250% and determined after the three-year reference period. For climate specifically, in 2024 performance is not measured against GHG reduction targets but against formal requirements for submitting application documents to the Science Based Targets initiative (SBTi) and achieving Target Approved status by the end of 2026. The percentage of climate-related remuneration components is 5%.

AIXTRON presents a table mapping the core elements of due diligence to the paragraphs and page numbers in the integrated sustainability report. Embedding due diligence in governance, strategy and business model is covered by the GOV-2 disclosure (page 123), GOV-3 (page 124) and the SBM-3 material impacts, risks and opportunities section (page 130). Engaging with affected stakeholders is addressed in the SBM-2 stakeholder section (page 128), the IRO-1 process description (page 134), the climate change policies (page 148), own workforce policies (page 175) and the workforce SBM-3 section (page 179). Identifying and assessing adverse impacts references the SBM-3 section (page 130) and the IRO-1 process (page 134). Taking action on adverse impacts points to actions and resources on climate policies (page 149) and actions on own workforce (page 181). Tracking effectiveness and communicating references climate targets (page 149) and own workforce targets (page 184). The disclosure functions as a cross-reference index rather than restating content.

AIXTRON's risk management system is centrally managed and involves all key organizational units. The Corporate Governance & Compliance department, directed by the CFO of AIXTRON SE, is responsible for establishing the risk management system and informs the full Management Board and Supervisory Board quarterly or ad hoc as needed. Sustainability-related risks identified in the materiality analysis were coordinated with the Risk Management department, which supports the Executive Board in systematically managing risks by defining, prioritizing and tracking risk-reducing measures; further detail is in the management report Risk Report. For sustainability reporting, the main risks are seen in the completeness and correct determination of data. New controls were implemented in the current reporting period and existing controls adapted to monitor the most important reporting risks; controls are currently carried out once a year. A quarterly risk inventory is run centrally by Risk Management. The Executive Board is updated weekly and the Audit Committee quarterly. Adjusted and newly added sustainability-related controls were tested for the first time at year-end, and any failed controls in financial and non-financial areas are presented to the Audit Committee after the responsible control owner is informed.

AIXTRON's business comprises the development, production and installation of equipment for the deposition of complex semiconductor materials, plus process technology development, consulting, training and customer support. Its products are used worldwide to manufacture high-performance devices for power and optoelectronic applications based on compound semiconductors, serving applications such as Micro LED and display technologies, data transmission, communication, signal and lighting technology, sensor technology, and power electronics based on silicon carbide (SiC) and gallium nitride (GaN). Markets and customer groups are described in the management report under Customers and Geographic Regions, and employee information under the Social section. As of December 31, 2024 there are production sites in Herzogenrath (DE), Cambridge (UK) and Turin (IT), with R&D in Herzogenrath and Cambridge and sales offices in the USA and Asia. The upstream value chain covers suppliers and the downstream chain covers direct customers. Sustainability approaches support several UN SDGs, particularly SDG 9 (Industry, Innovation and Infrastructure) and SDG 7 (Affordable and Clean Energy), as well as SDGs 8, 12 and 13. Low-CO2 technologies (GaN and SiC power transistors, Micro LEDs, laser diodes) are developed in line with the EU taxonomy. The ESG guideline anchors responsible business conduct.

AIXTRON aims to build trusting, long-term stakeholder relationships. Its key interest groups are customers and end consumers, employees, capital market participants, suppliers and business partners, state and politics, media, science and research, and nature (described as the silent stakeholder). Stakeholder groups were categorized and prioritized using criteria including stakeholder interests, influence, expectations of AIXTRON, dependency on AIXTRON, and the value to AIXTRON of engaging with each group. A table sets out the topics and forms of dialogue for each group, for example roadshows and quarterly reporting for capital market participants, audits and after-sales support for customers, supplier evaluations and workshops for suppliers, and employee surveys and staff meetings for employees. To identify material topics for 2024, a double materiality analysis was prepared building on the prior-year analysis, drawing on internal experts and employees in continuous contact with stakeholders to also cover the external perspective. The Supervisory Board is informed of stakeholder views and interests by the Executive Board on an ad hoc basis, with ad hoc and quarterly exchanges on stakeholder views regarding sustainability-related impacts. Workforce interests are represented through appraisals, all-hands meetings, works meetings, surveys and weekly Works Council/HR meetings.

AIXTRON's double materiality analysis identified material impacts only in the topical standards E1 Climate Change, S1 Own Workforce and G1 Business Conduct, plus opportunities in E1 Climate Change. Under E1, positive impacts include producing technologies for renewable energies and other low-CO2 applications and CO2 reduction in own production (green electricity certificates, waste heat and heat pumps for climate-neutral heat in Germany and the UK); negative impacts include GHG emissions across the entire value chain and the high energy requirements of AIXTRON machines. Energy sub-topics cover the Clean Energy Project to substitute CO2-intensive sources. Under S1, positive impacts include the employee suggestion scheme, secure employment and appropriate gender-neutral remuneration, professional training via the AIXTRON Academy, work-life balance (up to 80% home working), and occupational health and safety (zero tolerance for accidents); negative impacts include employment sensitivity to economic cycles and an inherent gender imbalance in the high-tech sector. Under G1, positive impacts concern responsible corporate culture (Compliance Code, Code of Ethics) and partnership-based supplier relationships. There are currently no measurable financial effects from the material opportunities. The physical climate risk analysis, using an IPCC-compliant tool from the German Federal Ministry for Economic Affairs and Energy, identified no material risks. All material IROs map to ESRS 1 Appendix A AR 16, with no company-specific IROs added.

For the report, a materiality analysis was conducted in accordance with ESRS with support from an external consulting firm, applying the double materiality concept and taking EFRAG implementation guidelines into account. Double materiality combines impact materiality (positive or negative impacts on people and the environment, actual or potential, across own operations and the upstream and downstream value chain) with financial materiality (risks and opportunities arising from dependencies on natural, human and social resources). A long list of relevant topics was compiled from ESRS 1 Appendix A AR 16 plus industry- and company-specific criteria; non-material topics were removed, and the resulting short list was drawn up by the project team with external consultants and validated by specialist departments. IROs were identified at sub-topic and sub-sub-topic level along business activities, considering country of impact and time horizon. Impact severity was assessed by scope and magnitude, with negative impacts prioritized by irreversibility and potential impacts by likelihood; for potential human rights impacts, severity was prioritized over likelihood. Financial materiality used risk management assessment scales for probability and financial extent. Material and immaterial topics were derived using a threshold value applied to each individual IRO, ensuring topics were not offset. Material risks were coordinated with Risk Management. The analysis is reviewed once a year in the first half of the reporting year. E2 Pollution, E3 Water and marine resources, E4 Biodiversity and ecosystems, and E5 Resource use and Circular economy were examined but deemed not material.

IRO-2 is the content index. The integrated sustainability report was prepared in accordance with EFRAG implementation guidelines, with the materiality analysis process and threshold determination explained in the IRO-1 section. A table lists all reported disclosure requirements with corresponding page numbers and data points included by reference, distinguishing content in the Sustainability Statement (ST) from the Management Report (MR). For ESRS 2 general disclosures it maps BP-1 (page 117), BP-2 (118), GOV-1 (119), GOV-2 (123), GOV-3 (124), GOV-4 (125), GOV-5 (125, referencing the Risk Report in the MR), SBM-1 (127), SBM-2 (128), SBM-3 (130) and IRO-1 (134). The table then covers the material topical standards: ESRS E1 Climate change (including E1-1 through E1-9, with E1-8 internal carbon pricing and E1-9 anticipated financial effects marked as not disclosed), the EU Taxonomy, and ESRS S1 Own Workforce. Consistent with the double materiality outcome, only E1, S1 and G1 topical standards are covered, reflecting that E2, E3, E4, E5, S2, S3 and S4 were assessed as not material.

AIXTRON states that, in line with German legislation and the Paris Agreement, a detailed transition plan is to be available by the end of 2025 (ESRS E1 17). Under ESRS 2 SBM-3, AIXTRON analyzed both physical and transitional risks using the same evaluation scheme as its materiality analysis. Three material opportunities were identified: developing new, climate-friendly technologies; achieving success through innovations in climate change mitigation; and developing new business areas. A resilience analysis, conducted annually since 2022, applies IPCC climate scenarios (SSP 5-8.5 and SSP 2-4.5) across short-term (2021-2040), medium-term (2041-2060) and long-term (2061-2100) horizons, covering procurement, production, R&D and sales. Because much of the business takes place in cleanrooms with hermetic isolation, environmental impacts in both directions are limited. The model remained robust across scenarios, with only a few risks classified as medium and manageable (probability every 5-10 years). Given low probability and limited financial scope, physical and transitional risks were not assessed as material, while significant opportunities were seen in semiconductors made on AIXTRON systems (ESRS E1 18-19).

AIXTRON's climate mitigation and adaptation policy is its ESG Policy, which manages material sustainability aspects and supports Sustainable Development Goals 7, 8, 9, 12 and 13. It applies to the entire AIXTRON Group and covers all sites in Europe, the USA and Asia, including sustainable procurement and compliance with the German Supply Chain Due Diligence Act (LkSG). The highest responsibility for the ESG policy lies with the Chief Financial Officer. There are currently no disclosures on third-party standards or initiatives the Group has undertaken to comply with. The ESG guideline stipulates that climate change mitigation is to be promoted by reducing energy consumption and using renewable energies, contributing to reduction of the CO2 footprint. The high proportion of EU taxonomy-compliant sales shows AIXTRON products support the environmental goal of climate change mitigation. Measures to adapt to climate change are not explicitly mentioned. Increasing energy efficiency is a key component of product development, emphasized by the Executive Board's long-term incentive plan (LTI), alongside promoting the circular economy through recyclable system design. The all-encompassing guideline includes all IROs (ESRS E1-2 22-25).

In 2024, as part of AIXTRON's climate concept actions, refurbishment of cold water production began with a CapEx of EUR 610 thousand (total CapEx 2024 was EUR 100.2 million), with completion planned for 2025. No further key measures were carried out or planned in the reporting year. At the Kaiserstrasse production site, old chillers dating from 1998 and 1999 were replaced by two new cooling machines using one of the most efficient technologies available. The old chillers used refrigerant R134a with a Global Warming Potential (GWP) of 1430, whereas the new systems use R1234ze with a GWP of just 1. This measure alone is expected to save around 400 tons of CO2 despite significantly higher cooling capacity. The new systems can also support the production cooling area and work on a water-to-water cooling principle, allowing continued use of existing evaporative cooling towers for further efficiency, unlike the old air-to-water chillers. An energy monitoring system was also set up to accurately measure electricity used relative to cooling produced. This key measure relates exclusively to the company's own business activities (ESRS E1-3 26-29; MDR-A 68-69).

AIXTRON set the goal of defining, agreeing and publishing clear, measurable climate targets aligned with the SBTi by the end of 2025, and initiated a corresponding project in August 2024. However, uncertainty over the use of market-based instruments in Scope 3 makes it inadvisable to set binding targets at present, and work continues to present well-founded targets by the end of 2025. The largest share of CO2 emissions results from customer use of AIXTRON systems, so the focus is on reducing these emissions via productivity-increase targets in the Executive Board's Long Term Incentives (LTI), aiming to coat a significantly larger area using the MOCVD process with the same energy consumption. For the LTI reference period 2024-2026, the target is to achieve SBTi "Target Approved" status by the end of 2026. For the 2025-2027 period, the Supervisory Board decided to reduce the standardized energy consumption of current AIXTRON systems for power electronics by the end of 2027. This energy efficiency target pertains to Scope 3 (Scope 2 from the customer perspective); it was not externally validated nor derived from a sector-specific decarbonization pathway. AIXTRON also targets ISO 14001 certification at all production sites by 2027 (ESRS E1-4 30-34).

AIXTRON obtains all its energy from external energy supply companies, with consumption and electricity mix figures taken from supplier invoices. Total energy consumption was 18,068 MWh in 2024, up from 16,500 MWh in 2023, an increase of 9.5% mainly due to changes in the product mix and additional R&D activities. In 2024, total fossil energy consumption was 12,965 MWh (76% share), comprising 341 MWh natural gas and 12,624 MWh purchased electricity, heat, steam and cooling from fossil sources. Consumption from nuclear sources was 919 MWh (5%). Total renewable energy consumption was 4,184 MWh (23%), including 4,184 MWh purchased renewable electricity, heat, steam and cooling. All electricity consumption was covered by green electricity certificates, and other energy emissions were offset by market-based instruments. No electricity-mix breakdown is available for the comparative year 2023. AIXTRON's revenues fall under NACE code 28.99, considered climate-intensive. Energy intensity from climate-intensive activities per net revenue was 28.5 MWh/EUR million in 2024, up from 26.2 in 2023 (ESRS E1-5 35-43; MDR-M).

AIXTRON applied the GHG Protocol for Scope 1-3 emissions; 100% originate from companies within its consolidation scope, and the share of primary data in Scope 3 is 3.5%. For 2024, gross Scope 1 emissions were 232 t CO2e (2023: 197). Location-based Scope 2 was 5,389 t CO2e (2023: 5,547) and market-based Scope 2 was 422 t CO2e (2023: 377). Total indirect Scope 3 gross emissions were 493,019 t CO2e (2023: 425,681), with the largest categories being use of products sold (3.11) at 426,284 t CO2e and purchased goods and services (3.1) at 38,113 t CO2e; other categories include capital goods (3.2) 3,776, fuel/energy-related activities (3.3) 1,199, upstream transport (3.4) 19,622, waste (3.5) 4, business trips (3.6) 3,498, commuting (3.7) 521 and end-of-life treatment (3.12) 2. Total GHG emissions (location-based) were 498,640 t CO2e in 2024 (2023: 431,424); market-based totalled 493,673 t CO2e (2023: 426,255). The increase reflects incorporating the Innovation Center (Scope 3.2, recorded for the first time) and a changed product mix (Scope 3.11). GHG intensity (location-based) was 788 t CO2e/million EUR in 2024 versus 685 in 2023 (ESRS E1-6 44-55; MDR-M).

AIXTRON reports technical emission-reduction measures including the installation of heat pumps and a switch to LED lighting. Through green electricity certificates, the gross CO2 footprint was reduced to net zero at all sites in 2024, as it was in 2023, and unavoidable emissions are offset by supporting a certified emission reduction project. CO2 certificates cancelled in the reporting year totalled 4,967 t CO2e (2023: 5,169), of which 100% were reduction projects and 0% removal projects. By standard, these comprised GoO 93.9%, REGO 3.5%, IREC 2.3% and US REC 0.3% in 2024, with 93.9% of projects within the EU. A further 4,967 t CO2e of certificates are to be cancelled up to March 31, 2025. Projects for storage or direct extraction of greenhouse gases have not yet been carried out. Two market-based instruments were used for the gross-to-net CO2 reduction: green electricity certificates for each site (GoO/REGO/IREC/US-REC standards), and an emission reduction project in India under the Verified Carbon Standard (VCS) to offset unavoidable emissions in Scopes 1 and 2 as well as parts of Scope 3 (ESRS E1-7 56-61).

AIXTRON manages material impacts on its own workforce through several policies. The AIXTRON Global Employment Standard commits the company to high corporate and social responsibility standards and covers safe employment, working hours, freedom of association, works councils, employee rights to information, consultation and co-determination, health and safety, gender equality and equal pay for equal work. Its principles apply to all employees including temporary and contract workers, covering respect for human rights, exclusion of forced, child and involuntary labor, wages and social benefits, working hours, prohibition of discrimination and harassment, and health and safety. The ESG Policy commits AIXTRON to respecting human rights across the Group in line with the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work and the OECD Guidelines for Multinational Enterprises. Additional policies include a Diversity Statement (owned by the VP HR and Chief Compliance Officer), a Whistleblowing Policy and a Human Rights and Environment complaints procedure. All policies are approved by the Executive Board. AIXTRON aims to obtain ISO 45001 certification at its production sites by end of 2026, with preparations started in April 2024.

AIXTRON emphasizes open, cooperative communication and regular transparent information to the whole workforce. Every quarter the Executive Board informs all colleagues worldwide about business development, customer requirements, market developments and new company agreements at digital staff meetings, where employees can put questions. The Executive Board and the Works Council develop the framework for employee consultation, with operational responsibility held primarily by the Vice President Human Resources. Both direct and indirect channels are offered, including annual appraisal interviews, quarterly all-hands meetings, works meetings held several times a year attended by at least one Executive Board member, and employee surveys (last survey in 2024) measuring satisfaction and motivation. The Works Council meets weekly with the HR department, and a monthly meeting takes place between the Executive Board and the Works Council. A company suggestion scheme lets every employee submit improvement ideas, which are evaluated by the Advanced Technologies department and decided by a review and evaluation committee with equal numbers of members appointed by the Executive Board and Works Council. The HR department represents the own workforce in the materiality analysis.

In addition to channels for reporting human rights violations and discrimination, AIXTRON has established remedial channels. A whistleblowing hotline freely accessible to all employees allows reports of violations of national and international laws, compliance requirements and the Compliance Code of Conduct and Code of Ethics. Reports can be sent confidentially by e-mail to sb@aixtron.com, received by the Chairman of the Supervisory Board of AIXTRON SE with a copy to the Chief Compliance Officer. The Complaints Procedure for Human Rights and the Environment allows reporting via compl-office@aixtron.com and is publicly accessible to all persons, processed confidentially by the Compliance department, by name or anonymously. Whistleblowers receive confirmation within 14 days of receipt and are generally informed of the status within three months of confirmation of receipt, and of the outcome once the procedure is completed. The Executive Board undertakes to protect whistleblowers. The channels are checked annually by the Compliance department to ensure they function properly. Awareness raising, mandatory training, regular e-mails and induction training reinforce trust in the procedures.

AIXTRON has not yet defined concrete time-bound targets in all areas but has implemented numerous actions, all already implemented and continued on an ongoing basis, applying to all employees unless stated otherwise. As a high-tech manufacturer with traditionally a higher proportion of men, AIXTRON counters potential negative effects on female applicants through actions promoting an inclusive environment, a diversity target within Executive Board remuneration, commitment to diversity and inclusion under the ESG policy, and the global employment standard prohibiting discrimination in hiring, promotion or remuneration by gender. To counter staff turnover, it promotes employee satisfaction through a constructive feedback culture, corporate benefits with discounts, flexible work schedules, and community events such as weekly running sessions, weekly soccer training, annual Christmas and summer parties, and participation in the Aachen company run. AIXTRON complies with maximum legal working hours, aims for regular working hours of 8 hours per day and at least one day off per seven-day week, and allows employees to work up to 80% mobile. Effectiveness is tracked using KPIs (training hours, apprentice retention rate, number of accidents at work, mobile office sickness rate) and half-yearly employee surveys (twice a year). Management deploys financial and human resources for satisfaction, occupational health and safety, health weeks and training.

AIXTRON has not formalized specific workforce targets in all areas. Targets were developed with the relevant department and approved by the Executive Board and Supervisory Board. For fiscal 2024 a measurable diversity target (LTI 2024) was set, embedded in the sustainability targets of the LTI reference period for Executive Board remuneration for 2024 to 2026, measured over three years on gender, nationality or ethnicity. The target value for diversity in senior management is 35% (100% achievement); 25% or below yields 0% achievement and 45% or higher yields 250%, with linear interpolation. At the end of 2024 the diversity ratio is 28%, a provisional target achievement of 30%. The employee retention target uses non-terminated employment contracts in key positions: a rate of 90% equals 100% achievement, 80% or below equals 0%, and 100% equals 250%. At the end of 2024 the retention rate is 92%, a provisional target achievement of 126%. For fiscal 2025 further LTI 2025 targets (2025 to 2027) were set on diversity in key functions, further training and skills development (new competency model), and occupational health and safety (ISO 45001 certification for all production sites).

As of December 31, 2024, AIXTRON had 1,207 employees (headcount), up 60 from 1,147 in 2023. By gender: 988 men and 219 women (2023: 930 men, 217 women), with 0 divers and 0 not reported. By region: Germany 897 (732 men, 165 women), UK 112 (97 men, 15 women), and Asia/USA 198 (159 men, 39 women). By contract type in 2024: permanent 1,090 (897 men, 193 women) and temporary 117 (91 men, 26 women), with 0 non-guaranteed-hours employees; full-time 1,091 (913 men, 178 women) and part-time 116 (75 men, 41 women). A total of 157 employees left the company in 2024 (2023: 117), resulting in total fluctuation of 12% (2023: 9%), calculated by dividing leavers by the sum of employees at the beginning of the period and joiners. Figures are headcount at year-end, collected centrally for the Group using the standard recording system also used for financial figures. Growth was slight (+60 employees) after strong prior-year increases due to a good order situation.

To react flexibly to demand fluctuations, AIXTRON works with established engineering service providers and temporary employment agencies (NACE code N78, placement and leasing of labor) in addition to fixed-term contracts. External workers are mainly temporary workers deployed in production and provided by other companies. A small number of self-employed persons are used to bridge unplanned vacancies at short notice and for time-limited internal optimization projects; these freelancers are specialists in their fields. In 2024, a total of 53 external workers were employed as at December 31, of whom 19 were temporary workers and 34 were self-employed, with the self-employed stated as number of persons at December 31, 2024. In recent years higher numbers of temporary employees were hired to cover production and R&D peaks; these requirements were adjusted during the year while some temporary workers were taken on as permanent staff. A works agreement covers these cases at the German sites, and AIXTRON applies the equal pay principle and equal treatment of temporary and permanent employees after 15 months of employment. Both employees and temporary workers receive meal allowances, access to AIXTRON Academy training, and invitations to company events.

Diversity is a material topic for AIXTRON. The company aims to continuously increase the proportion of female employees through targeted recruiting in training, cooperation with local universities, trade fair visits and social media communication, and plans to increase diversity in key functions. At top management level (the first level reporting directly to the Executive Board and the level below) the headcount as at December 31, 2024 is 104, comprising 88 male (85%), 16 female (15%) and 0 divers (0%). The age structure of employees for fiscal 2024 (headcount, %): under 30 years 183 (15%, 2023: 183 / 16%); 30 to under 50 years 660 (55%, 2023: 618 / 54%); 50 years and over 364 (30%, 2023: 346 / 30%); total 1,207 (100%, 2023: 1,147 / 100%). Equal opportunity is treated as a fundamental requirement and prerequisite for full innovative power and competitiveness.

AIXTRON is committed to fairness and equity as articulated in the Global Employment Standard. As a minimum it complies with all applicable wage and labor laws, regulations and collective bargaining agreements, including those on minimum wages, overtime and other compensation, and provides legally mandated benefits. Where no such laws or agreements apply, market wages and salaries are paid. Every year the average salary level of employees across the Group is compared with applicable minimum wages in individual countries. In 2024, all employees across the Group received appropriate remuneration in line with the applicable reference values. In addition to observing the minimum wage, internal and external benchmark studies are regularly carried out to define appropriate wages. Wages or bonuses are never deducted for disciplinary reasons. Equal pay for equal work in the same or comparable functions is enforced for all genders, as set out in the AIXTRON Group's remuneration policy, and an annual global review of equal pay identifies pay gaps that can be reduced through appropriate actions.

AIXTRON is committed to ensuring that employees in all countries where it operates have access to social protection programs. These programs provide protection against unemployment, work accidents, parental leave and retirement. The only exception is the UK, where employees have limited statutory social protection in relation to unemployment: employees are only legally entitled to severance pay if they have worked for their current employer for at least two years and have been dismissed for operational reasons. The programs are intended to ensure that employees worldwide are well protected and can focus on their work without worrying about financial uncertainties. In addition to the programs required by law, AIXTRON supports retirement provision and offers discounted individual supplementary insurance.

Lifelong learning and further training of employees are prerequisites for maintaining AIXTRON's market position. Development and qualification needs, along with personal interests, are recorded in employee appraisals which generally take place annually. In 2024, 63% of women and 69% of men took part in a performance and career development review; participation rates vary depending on the start of the employment relationship and may deviate from the expected 100%. Data collection for ESRS reporting showed that the handling of employee appraisals varies greatly across regions, prompting AIXTRON to implement a standardized Group-wide approach in coming years. Training hours in 2024: total 44,801 hours across 1,207 employees, averaging 37.0 hours per employee (2023: 37,137 hours across 1,147 employees, 32.0 hours). For men, 38,905 hours averaging 39.4 hours (2023: 29,838 / 32.1); for women, 5,897 hours averaging 26.9 hours (2023: 7,299 / 33.6). The company's own AIXTRON Academy offers general training (project management, negotiation, time and self-management) and specialist content, with courses also organized with external providers, plus coaching and management training.

AIXTRON's occupational safety principle is zero tolerance for accidents, with a preventative approach and instruction of employees at least once a year. The Safety, Health and Environmental Protection (EHS) department, in particular two internal safety specialists and the external company doctor, advises management, managers, the Works Council and employees. A formalized health and safety management system is in the evaluation and creation phase, with preparations started April 2024 and scheduled for completion in 2026 (targeting ISO 45001). An occupational health and safety committee including management, senior management, works council members, the company doctor, safety specialists and safety officers meets quarterly. As in previous years, there were no fatalities to report in 2024. Around 28% of employees work in production and around 34% in research and development. Metrics for 2024: rate of accidents at work 4.69 (occupational accidents per one million working hours, assuming 8 hours x 210 working days); accidents at work 9; work-related sickness 0; working days lost from work-related sickness and accidents 30. Preventative health management includes occupational medical examinations, health weeks, flu vaccinations, subsidized healthy menus and fresh fruit baskets.

AIXTRON supports country-specific entitlements to time off work for family reasons covering four reasons: maternity leave, paternity leave, parental leave and childcare leave. It aims to comply with all legal requirements and to exceed standards where possible. Within China and Malaysia not all four family entitlements apply: in China there is no entitlement to time off for carers leave, and in Malaysia there is no entitlement to leave for parental leave and carers leave; AIXTRON is evaluating how the missing entitlements can be enabled in those regions. Work-life balance metrics for 2024 (%): employees entitled to take family-related leave (share of total employees) 94; employees that took family-related leave (share of entitled employees) 3; of those who took leave, male 80% and female 20%, with 0% not reported as female or male. Since 2012 a local daycare center (TPHasen) has been funded to support employees at the Herzogenrath site in finding daycare close to work.

For fiscal 2024, AIXTRON calculates the gender pay gap according to ESRS as the difference between the average income of female and male employees expressed as a percentage of the average income of male employees. The calculation uses average gross hourly earnings and generally variable remuneration components including the recognition bonus; the inventor bonus, idea bonus and the Employees recruit employees bonus are excluded as immaterial (less than 1% of total personnel expenses) or not original work performance. The ESRS gender pay gap for 2024 is 17%, broken down into 24% for employees with a management function and 10% for employees without a management function; 168 employees with a management function and 1,037 employees without are considered, and the Executive Board is excluded. The method does not adjust for career level, country-specific wage gap, training and experience, area of responsibility, career path and management responsibility, department, length of service, bonus background or other economic and social conditions. The ratio of the annual total remuneration of the highest-paid individual (CEO) to the median annual total remuneration of all employees is 47-fold for 2024, with the LTI valued under IFRS 2.

In 2024, no incidents or complaints of discrimination (for example based on gender, race or ethnic origin), including harassment, and no serious incidents related to human rights (for example forced labor, human trafficking or child labor) were reported through the channels described above or any other channels. As a result there were no fines, special payments or sanctions.

AIXTRON treats corporate culture as a core value, with the Executive Board ensuring that decisions and business dealings comply with law, morality and integrity. A Group-wide compliance management system, led by the Chief Compliance Officer who reports at least quarterly to the CFO and the Supervisory Board's Audit Committee, oversees adherence to internal and external requirements. The Group-wide Compliance Code of Conduct applies to corporate bodies, all managers and employees, and functionally equivalent persons such as temporary agency staff, and is elaborated by further compliance guidelines. Annual compliance training is mandatory for the Executive Committee and Senior Management Team, and is part of new-employee induction. These groups and selected employees confirm compliance in writing quarterly. The Code of Ethics applies Group-wide, targeting the Executive Board and finance-responsible staff, promoting honest behavior, handling of conflicts of interest, and timely accurate financial reporting; finance managers and key-function persons confirm awareness annually. An anti-corruption policy similar to the UN Convention against Corruption (UNCAC) applies, and a whistleblower system under the German Whistleblower Protection Act (HinSchG) routes reports to the Supervisory Board Chairman with a copy to the Chief Compliance Officer.

AIXTRON places the same expectations on suppliers as on itself, with ethical and legal conditions for social and ecological standards defined in the Suppliers section of its website. It does not manufacture systems itself, focusing on development, configuration and final assembly, so procurement is critical to long-term success. Supplier selection is driven primarily by quality, manufacturing expertise, delivery reliability and price, with partnership-based cooperation including joint development. Suppliers must comply with applicable laws and meet international minimum sustainability standards such as the ILO core labor standards. A conflict-minerals management system based on the OECD Guidelines requires direct suppliers to identify origin countries, and AIXTRON is a long-standing member of the Responsible Minerals Initiative (RMI). Although not currently within the scope of the German Supply Chain Due Diligence Act (LkSG), AIXTRON maintains an LkSG-based compliance program and multi-stage risk analysis. Preventive and remedial measures include topic-related questionnaires and sending the Supplier Code of Conduct for confirmation by selected suppliers, plus possible supplier audits (ESRS G1-2 15). An invoice control process checks and verifies supplier invoices via Accounts Payable, with weekly open-item checks and a payment-punctuality KPI overview; equal treatment of all suppliers is envisaged with no separate process for SMEs (ESRS G1-2 14).

AIXTRON aims to pay all invoices within the agreed payment period. The standard payment terms for all suppliers under its GTC are 60 calendar days after receipt of delivery and receipt of invoice, with a 3% discount deductible if payment is made within 14 calendar days. These terms apply to all suppliers unless separately negotiated; some suppliers specify their own terms, which AIXTRON takes into account. There are no separate payment terms for SMEs (ESRS G1-6 33 b). The average time to settle an invoice is 30 days, and for SMEs the average is 27 days (ESRS G1-6 33 a). There are currently no pending legal proceedings for late payment (ESRS G1-6 33 c). The breakdown into SMEs and other suppliers was based on an assessment by an external consultancy. To calculate the average settlement time, the document date was compared with the settlement date, including only invoices already paid; individual exceptions checked by responsible parties were excluded. No external validation took place (ESRS G1-6 33 d; MDR-T).