ASM International

While a detailed description of the role of administrative, management and supervisory bodies regarding sustainability is not provided in the extract, the company has governance structures in place including a Management Board led by Chairman and CEO Hichem M'Saad, and a Supervisory Board. The governance structure includes committees focused on sustainability topics, as evidenced by ASM's continued role as chair of the Semiconductor Climate Consortium and active work on climate initiatives.

Integration of sustainability-related performance in incentive schemes

Roles covered

Sustainability-related objectives are integrated into incentive schemes for the Management Board.

Specific sustainability KPIs tied to remuneration

In 2024, 25% of the short-term incentives (STI) for the Management Board were based on non-financial targets, including:

• Achieving CO2 reductions in line with ASM's SBTi-approved reduction target (6% of total STI);
• Growing the representation of women in the sub-board and across the global workforce;
• Ensuring the quality of public sustainability disclosures, and obtaining third party-provided limited assurance; and
• Reducing the total injury rate through improved safety measures.

Weighting

• 25% of total STI is linked to sustainability (non-financial targets)
• Of the 25% sustainability weighting, 6% of total STI is specifically allocated to CO2 reduction targets

Performance period and incentive type

The sustainability metrics are incorporated into the short-term incentive (STI) scheme.

Target structure and performance evaluation

Performance is evaluated on a sliding scale, with the specific terms approved by the Supervisory Board, as advised by the Nomination, Selection, and Remuneration (NSR) Committee.

Broader organizational integration

Beyond the Management Board, sustainability goals are embedded in corporate objectives as well as department-level objectives, ensuring a company-wide focus on sustainability targets.

ASM is a leading semiconductor equipment provider with a focus on deposition tools. The company has a mid-50s percentage market share in ALD and growing position in silicon Epi.

Business Model: ASM's business model emphasizes early phase R&D, collaboration, and wide-ranging customer engagement across four phases:

• Phase 1: Materials and early R&D
• Phase 2: New product development & evaluations
• Phase 3: Product introduction and high-volume manufacturing
• Phase 4: Product improvement & refurbishment programs

Strategy: ASM's strategy is based on six strategic objectives:

1. Grow ALD business by maintaining leadership in logic/foundry and expanding in memory
2. Increase Si Epi market share
3. Selective growth in vertical furnaces (VF), PECVD and SiC Epi niches
4. Grow Spares & Services business
5. Accelerate sustainability
6. Drive strong financial performance

Value Chain: ASM operates in the semiconductor value chain as an equipment provider to semiconductor manufacturers. Key locations include 15 countries/regions supplied, 20 manufacturing facilities, and operations across Belgium, China, Finland, France, Germany, Ireland, Israel, Italy, Japan, Korea, Malaysia, Netherlands, Taiwan, Singapore, and United States.

Revenue by segment: Equipment revenue 81%, Spares & Services 19% Revenue by geography: Asia 73%, US 21%, Europe 6%

ASM is committed to engaging stakeholders throughout our organization and value chain. Our account teams are close to our customers' fabs for day-to-day interaction in sales, product and process support, spare parts, etc., and are providing support for our customers' production ramps. Our product development and technical product-support groups engage with customers on issues in manufacturing, product-improvement projects, joint development programs, and discussions about requirements for next generation technology roadmaps. Periodic customer and ASM executive meetings serve to strengthen our business relationships and share commitments.

Customer Engagement: Critical to our success is close and early collaboration with leading customers and suppliers, global research institutions, such as imec, and key universities. We engage with – and are responsive and committed to addressing – the broad range of our customers' sustainability expectations, including detailed inquiries and periodic audits.

Supplier Engagement: Our suppliers are key partners. As we grow our business, the opportunities for our suppliers increase. Together with our suppliers, we can create positive impact for our stakeholders, the planet, and society overall – well beyond our individual scale. We strive to further build on a sustainable, responsible supply chain, with a focus on areas such as worker safety, environmental footprint, and human rights.

Employee Engagement: Our 2024 employee engagement survey had a high response rate of 95%. We prioritize a workplace that fosters Accountability, Collaboration and Empowerment (ACE), behaviors that support our values and enable our culture.

Research Collaboration: At our R&D labs, we focus on early-stage R&D for developing new materials and precursor chemistries. A critical component is close and early collaboration with global research institutions, such as imec, key universities, suppliers and leading customers.

Material Impacts, Risks and Opportunities:

Key Opportunities:

• AI Revolution: AI has become the main driver of the semiconductor market, significantly boosting data-center growth. New AI-augmented end-market products and applications are being developed across nearly every segment of the economy. The semiconductor market is expected to grow to >$1 trillion by the end of the decade, with AI accounting for a meaningful part of this growth.
• Gate-All-Around (GAA) Technology: The transition to 2nm GAA technology represents about US$400 million in additional ALD and Si Epi served available market per 100K monthly wafer starts capacity. More single-wafer ALD and Epi process steps are expected to be required to enable semiconductor devices with higher power efficiency and improved performance.
• Market Growth: The single-wafer ALD market is expected to grow from ~US$2.6 billion in 2022 to US$4.2-$5.0 billion in 2027. The Si Epi market is expected to grow from ~US$2.0 billion in 2022 to about ~US$2.3-US$2.9 billion in 2027.

Key Risks:

• Geopolitical Risk and Supply Chain Shifts: Geopolitical developments, such as trade restrictions, put the traditional semiconductor value chain model at risk. Increasing awareness around the importance of a domestic semiconductor industry is leading to shifts in the industry's global footprint.
• Talent Competition: There is increasing competition for highly skilled talent everywhere we operate. Without this talent we will not be able to realize our strategy.
• Mixed Market Conditions: Despite growth in AI, other high-volume end-market segments such as PCs and smartphones continued to be relatively sluggish, due to slow consumer spending, economic uncertainty, and ongoing geopolitical tensions.
• Environmental Footprint: While the semiconductor industry contributes vital technology to society, it is becoming increasingly important for our stakeholders and society in general that we make progress on sustainability initiatives.

Integration with Strategy: These impacts, risks and opportunities are integrated into ASM's strategy through six strategic objectives focused on growing ALD business, increasing Si Epi market share, selective growth in niche areas, growing Spares & Services, accelerating sustainability, and driving strong financial performance.

Description of the process to identify and assess material impacts, risks and opportunities

Overview of the Double Materiality Assessment (DMA)

A key change in ASM's reporting process was the adoption of the Double Materiality Assessment (DMA). This assessment provided valuable insights into two key areas: how ASM's business impacts sustainability factors and how external sustainability priorities affect the business. These insights have helped refine and sharpen the company's strategy.

ASM conducts an annual materiality assessment to evaluate sustainability priorities from two angles: the impacts that ASM has on people and the planet, as well as the financial risks and opportunities that sustainability topics might have on ASM. This process identifies key IROs, ensuring focus on areas where the sustainability strategy can drive the most value.

Step-by-Step Methodology

The double materiality assessment process involves four steps:

1. Operating environment analysis: ASM assesses the business context, value chain, and stakeholder landscape. The company examines the full scope of business activities, from upstream suppliers like smelters, component producers, contract manufacturers, and utility providers to downstream customers, including semiconductor manufacturers.

2. Identifying long-list topics: ASM defines sustainability priorities through stakeholder touchpoints, benchmarking activities, and industry research conducted by internal experts. Identified topics are informed by:

• The Corporate Sustainability Reporting Directive (CSRD)
• Peer and industry research
• ASM's enterprise risk-management framework

3. Prioritization and validation: The long-list of sustainability topics is refined through workshops and consultations with both internal and external stakeholders. Methods such as surveys, expert interviews, and desk research are used to capture stakeholder priorities. These topics are then validated and prioritized using both impact and financial materiality lenses, ensuring the most critical issues are identified.

4. Board verification: Once the list of material topics is finalized, it undergoes a multi-tiered approval process. ASM's Management Board, Executive Committee, and Sustainability Leadership Council validate the topics before receiving final approval from the Supervisory Board. This ensures ASM's strategic objectives and sustainability efforts are focused on the most critical issues, enabling effective risk management and opportunities for positive impact.

Inputs to the Assessment

Stakeholder engagement: Stakeholder engagement is central to ASM's sustainability strategy. The company aligns policies with global standards and engages with various organizations to advance shared priorities. ASM's stakeholder framework focuses on regular engagement to reflect stakeholder interests in the sustainability strategy and keep key IROs up to date.

Stakeholder touchpoints in 2024 included:

• Customers: Periodic meetings, key account management, development sessions, joint innovation projects
• Employees: All-employee meetings, works council, employee resource groups, engagement surveys, employee development dialogues
• Investors: Annual General Meetings, roadshows, conference calls, broker conferences
• Suppliers: Commodity manager engagement, annual Supplier Day, quarterly business reviews
• NGOs: Engagement letters and sessions, bilateral dialogues
• Industry consortia: R&D partnerships with RBA, SEMI, SIA, SESHA, RE100, UN Global Compact, Semiconductor Climate Consortium
• Communities: Employee volunteering, company donations, contributions to local communities

Sector benchmarks and guidance:

• Corporate Sustainability Reporting Directive (CSRD)
• European Sustainability Reporting Standards (ESRS)
• Peer and industry research
• GHG Protocol
• Science Based Targets initiative (SBTi)

Internal experts and processes:

• Enterprise risk-management framework
• Internal sustainability experts
• Functional leaders represented in the Sustainability Leadership Council (SLC)

External consultants: External consultants are used for specific assessments and validation processes.

Value Chain Mapping

ASM's materiality assessment evaluates both direct and indirect impacts across the value chain. Internally, ASM assesses impacts such as energy consumption and employee well-being. For impacts arising from business relationships, the company evaluates the processes of upstream suppliers and the energy consumption of products downstream. This value chain lens enables understanding of the full spectrum of potential impacts on people and the environment, whether through direct operations or the broader ecosystem.

The assessment examines activities from upstream suppliers (smelters, component producers, contract manufacturers, utility providers) to downstream customers (semiconductor manufacturers).

Scoring Criteria

Impact Materiality: The materiality assessment evaluates impacts based on:

• Severity
• Scale
• Scope
• Irremediable character

Topics are validated and prioritized using the impact materiality lens to ensure the most critical issues are identified.

Financial Materiality: Under financial materiality, ASM evaluates:

• The magnitude of gross sustainability risks and opportunities over different time horizons
• Integration with the Enterprise Risk Management (ERM) framework

Key elements include:

1. A standardized risk assessment matrix that applies to all risk types, including sustainability-related risks
2. Long-term scenario analysis, particularly for climate-related risks and opportunities
3. Risk-mapping tools that identify cascading effects between sustainability and business risks
4. Scenario analysis to inform strategic planning and prioritize risks, particularly those related to climate change

The process carefully maps the interconnections between risks, dependencies, and opportunities. For example, ASM assesses the risks associated with climate change – such as increased operational costs due to carbon pricing – alongside opportunities to develop energy-efficient products. This matrix approach allows visualization of how different risks and opportunities interact, informing a more comprehensive sustainability strategy that not only mitigates risks but also capitalizes on emerging opportunities.

Threshold for Materiality

Topics considered material in terms of their societal or environmental impact (impact materiality) did not necessarily equate to them being material in financial terms, and vice versa. This distinction highlights the nuanced nature of the DMA process and ensures that both perspectives are considered independently when evaluating IROs.

Timeline and Frequency

Frequency: ASM conducts an annual materiality assessment.

2024 Review: The 2024 double materiality assessment (DMA) focused on validating the findings from the previous year, ensuring that the identified topics in 2023 remain relevant and complete. No significant changes were made to the methodology, but ASM continues to refine the process, keeping pace with advancements in stakeholder engagement, impact measurement, and integrated risk management.

Timeline perspective: From a timeline perspective, ASM considers the material impacts identified to be relevant in the short term, and expects them to remain so in the mid- to long term. Unless communicated otherwise, ASM adheres to the standard timelines that the European Sustainability Reporting Standards (ESRS) prescribe.

Assessing Adverse Impacts

ASM's materiality assessment evaluates both direct and indirect impacts across the value chain. Internally, impacts such as energy consumption and employee well-being are assessed. For impacts arising from business relationships, the processes of upstream suppliers and the energy consumption of products downstream are evaluated. By carefully analyzing these impacts, ASM can prioritize areas where negative effects are most significant and direct resources towards tailored mitigation strategies.

Risk Management and Opportunity Identification

Based on the assessment, ASM does not anticipate material negative financial effects in the short- to mid-term from the net risks. The company expects to maintain effectiveness in management practices, lowering the chances of material financial impacts over the long term as well, although these outlooks are subject to higher levels of uncertainty. Risk management measures align with strategic goals, reducing the likelihood of significant potential financial impact.

To continue to implement strategic plans, ASM relies on a robust financial position that includes a healthy cash balance, sustained free cash flow, and a flexible revolving credit facility. These funding sources ensure necessary resources to execute strategic initiatives effectively while maintaining financial resilience.

2024 Material Topics Identified

Following the DMA process, the material topics identified form the foundation of ASM's sustainability priorities:

Continuous Improvement

ASM continues to refine the DMA process, keeping pace with advancements in stakeholder engagement, impact measurement, and integrated risk management. None of the metrics related to material topics are validated by an external body other than the assurance provider.

In 2024, we published our inaugural Climate Transition Plan, which details how we aim to achieve our Net Zero by 2035 target. This represents a key milestone in our sustainability journey.

Our climate transition planning includes:

• Net Zero by 2035 targets that were verified by SBTi in 2023
• Focus on collaborating with stakeholders across our value chain with the ambition to bring faster and more meaningful change to environmental challenges
• Leading role in co-founding the Semiconductor Climate Consortium (SCC), where ASM serves as chair
• Integration of 'Design for Sustainability' considerations into our product portfolio
• Latest equipment innovations that prioritize energy efficiency and resource conservation, reducing environmental impact across the semiconductor value chain
• Through innovation we aim to further improve the energy and resource-efficiency of our products

Policies related to climate change mitigation and adaptation

ASM International has disclosed two primary policies related to climate change mitigation and adaptation:

Climate and Net Zero Policy Statement

• Owner: VP Sustainability
• Scope: ASM Global (all global operations)
• Key content and principles: The policy establishes ASM's vision for climate and GHG-reduction goals and objectives, addressing:
  • Acknowledgement of climate-related risks
  • Identification of risks and opportunities to inform strategic investments, business resiliency, and sustainable operations
  • Actions to mitigate those risks and impacts
  • Reduction of emissions through efficiency, abatement, and chemical use reductions and substitutions
  • Maximizing the sourcing of electricity from renewable sources
  • Neutralizing remaining emissions
  • Collaborating across the value chain for collective global impact
• Public availability: Available on ASM's website
• Governance and oversight: The VP of Sustainability takes part in business strategy sessions that address the entire organization. The policy supports ASM's business strategy and financial planning.
• Link to international standards: The net-zero targets were verified by the Science Based Targets initiative (SBTi) in 2023 for Scopes 1, 2, and 3
• Monitoring implementation: ASM published its first Climate Transition Plan in March 2024, which details how the company aims to achieve its Net Zero by 2035 target. Progress is tracked through specific metrics including:
  • 100% renewable electricity achieved in 2024
  • 52% reduction in combined Scope 1 and 2 GHG emissions in 2024
  • 96% of critical suppliers submitted climate disclosures by 2024
  • Measurable targets for deposition technologies (e.g., 35% reduction in precursor consumption for key ALD applications by 2035)

The Supervisory Board regularly discusses sustainability strategy, including the Climate Transition Plan, with the Management Board. In October 2024, the Supervisory Board discussed concrete steps ASM is taking to decrease its CO2 emissions and other sustainability measures.

Human Rights Policy

• Owner: VP Sustainability
• Scope: ASM Global (all global operations)
• Key content: Released in 2024, this comprehensive Human Rights policy strengthens engagement into the supply chain to reduce impact and risks. The policy sets groundwork to drive stronger and clearer expectations for suppliers and enables deeper investigation into the extended supply chain.
• Link to international standards: While not explicitly stated, the policy is part of ASM's broader commitment to ethical and responsible business practices
• Monitoring implementation: Supported by due-diligence efforts with the supply chain, including:
  • Risk assessments
  • Training and engagement
  • Supplier capacity building
  • Audits

Related Policies Supporting Climate Action

While not exclusively climate-focused, ASM has disclosed several additional policies that support climate change mitigation and adaptation:

Supplier Code of Conduct

• Owner: VP Global Supply Chain
• Scope: Direct and indirect suppliers
• Monitoring: ASM engages suppliers on sustainability topics. By 2024, 96% of critical suppliers have submitted their climate disclosures. The company also co-founded the Semiconductor Climate Consortium (SCC) and sponsors the Catalyze program that stimulates and supports the supply chain in accessing renewables.

Global Occupational Health and Safety Policy Statement

• Owner: VP Sustainability
• Scope: ASM Global

Stakeholder Dialogue Policy

• Owner: Management Board
• Scope: ASM Global

ASM's climate policies are integrated into the company's Growth through Innovation strategy, with sustainability acceleration being one of seven strategic pillars. The Supervisory Board maintains oversight, with regular discussions on sustainability ratings, targets, and performance against the Net Zero by 2035 ambition.

Actions and resources in relation to climate change policies

Decarbonization Roadmap

ASM has established a comprehensive decarbonization roadmap organized into four core pillars:

1. Decarbonize our operations (Scope 1 & 2 - 0.3% of total 2023 GHG footprint)

Actions:

• Procure 100% renewable electricity globally
• Green hydrogen for natural gas replacement
• Electrification of processes
• Energy efficiency improvements

Resources & Timeline:

• Achieved 100% renewable electricity across all operations in 2024 (vs 88% in 2023)
• In 2024, allocated operational expenditure of €6 million towards decarbonization initiatives, including renewable energy and energy efficiency measures

Expected Outcomes:

• 78% of the reduction in Scope 1 and 2 GHG emissions by 2035 (compared to 2021 baseline) will be achieved through procuring renewable energy
• 51% reduction in Scope 1+2 emissions achieved in 2024 vs 2023

Interventions breakdown (Scope 1 & 2):

• Procure renewable electricity: 78% reduction contribution
• Green hydrogen for natural gas: 5% reduction contribution
• Electrification: 4% reduction contribution
• Energy efficiency: 1% reduction contribution
• Residual emissions: 12% remaining

2. Decarbonize logistics and transportation (Scope 3, categories 4 and 9 - 3% of total 2023 GHG footprint)

Actions:

• Support adoption of Sustainable Aviation Fuel (SAF) by logistics providers
• Assess transport routes to optimize source-to-destination efficiency
• Reduce emissions through route optimization

Scope: Upstream and downstream value chain

3. Decarbonize purchased goods and services (Scope 3, Category 1 - 16% of total 2023 GHG footprint)

Actions:

• Engage with suppliers to implement decarbonization strategies in partnership with ASM
• CDP supply-chain program participation
• Catalyze program co-sponsorship

Resources:

• ASM is a founding sponsor of Catalyze (alongside Intel, Applied Materials, Google, and HP), established in 2023

Timeline & Outcomes:

• 96% of critical suppliers submitted CDP climate disclosures in 2024 (vs 88% in 2023)
• 67% of critical/strategic suppliers reporting Scope 1 & 2 emissions in 2024 (vs 61% in 2023)
• 21% of critical/strategic suppliers with GHG reduction targets (Scope 1 & 2, 2030 1.5°C SBTi aligned) in 2024

Scope: Upstream value chain

4. Decarbonize product use (Scope 3, Category 11 - 77% of total 2023 GHG footprint)

Actions:

• Develop energy-efficient plasma sources
• Optimize chemical (precursor) usage
• Advance thermal technologies for heating efficiency
• Design for Sustainability integration into product portfolio
• Industry collaboration through Semiconductor Climate Consortium

Expected Outcomes:

• Target: 35% reduction in precursor consumption for key ALD applications by 2035
• Help customers reduce energy consumption while maintaining high-performance production capabilities

Scope: Downstream value chain (customer use phase)

Complete Kit Management (CKM) Program

Action: Systematic repair, refurbishment, and reuse of tool parts to extend functional lifecycle and avoid new materials production.

Resources:

• Expanded internal refurbishment capabilities in 2024
• Multi-year CKM contracts with customers

Expected Outcomes:

• Avoided GHG emissions through materials savings:
  • 2020: 81 tonnes CO2e
  • 2021: 916 tonnes CO2e
  • 2022: 1,807 tonnes CO2e
  • 2023: 2,127 tonnes CO2e
  • 2024: 2,592 tonnes CO2e

Scope: Supply chain (upstream - materials reduction)

Renewable Energy Procurement

Actions:

• Unbundled Energy Attribute Certificates (EACs) and Green Premiums
• Virtual Power Purchase Agreements (vPPAs) through consortium partnerships
• On-site solar power generation

Resources & Timeline:

• First on-site solar power system installed at Singapore facility in December 2023
• Full production capacity achieved in 2024
• Active participation in two separate consortium initiatives for vPPAs
• RE100 membership (joined 2023, recognized as 'Best Newcomer' in 2024)

Quality Standards:

• 100% in-market purchases
• Recent commissioning requirements
• Vintage limitations to electricity generation
• Exclusive ownership and attribution
• Premium label certificates (Green-e and EKOenergy)

Renewable electricity mix 2024:

• Bundled EACs: 3%
• Unbundled EACs: 97%

Scope: Own operations

Energy Efficiency Programs

Action: Leak Detection Program for compressed air systems

Resources:

• Advanced monitoring technologies deployed

Expected Outcomes:

• Real-time leak detection
• Quantified energy savings and CO2 emission reductions
• Improved operational reliability through reduced unplanned downtime

Scope: Own operations

Action: Pilot program for high-performance GHG abatement units

Expected Outcomes:

• Maximize emissions reduction while avoiding fossil fuel use

Scope: Own operations

Target for 2025: Energy efficiency and renewable electricity generation equivalent to 0.5% of 2024 electricity consumption.

Catalyze Program (Co-founded and Co-sponsored)

Action: Drive widespread adoption of renewable electricity across global semiconductor value chain through collaborative long-term sourcing agreements.

Resources:

• Founding sponsor role (alongside Intel, Applied Materials, Google, and HP)
• Established in 2023

Key Features:

• Amplifies collective impact by consolidating energy purchasing power
• Encourages inclusive supplier participation in utility-scale PPAs
• Universal accessibility for any semiconductor supply chain company
• Educational and digital initiatives for supply chain decarbonization

Geographic Focus: Regions where ASM's suppliers operate, with long-term ambition to extend globally

Scope: Value chain (upstream suppliers)

Sustainable Building Design

Action: All future construction projects to meet high LEED certification standards with sustainability and decarbonization elements integrated from design outset.

Resources:

• Capital investments in lab space and equipment for next-generation technologies (amount not specified)

Expected Outcomes:

• On-site electricity generation where possible
• Enhanced resilience and sustainability of energy portfolio

Timeline: Ongoing for future projects

Scope: Own operations

Policy Links & Governance

All actions are linked to:

• Climate and Net Zero Policy Statements (available on ASM website)
• Net-Zero by 2035 Target (SBTi-verified August 2023):
  • Near-term target: 47.6% reduction in Scope 3 GHG emissions per EUR of value added by 2030 (from 2021 baseline)
  • Long-term target: Net-zero emissions across all scopes by 2035
• Climate Transition Plan (published 2024)

Management Incentives: 25% of short-term incentives (STI) for Management Board in 2024 were based on non-financial targets, including:

• Achieving CO2 reductions in line with SBTi-approved target (6% of total STI)
• Quality of public sustainability disclosures and obtaining third-party limited assurance
• Other sustainability metrics

ASM has announced Net Zero by 2035 targets, which were verified by SBTi in 2023.

For product sustainability, we have set measurable targets for our deposition technologies:

• 35% reduction in precursor consumption for key ALD applications by 2035

This will help our customers reduce their own energy consumption while maintaining high-performance production capabilities.

Energy consumption and mix

Disaggregated energy consumption table

Energy intensity

Scope: All ASM activities are in scope of high climate-impact sectors. The total energy consumption covers ASM's global operations.

Renewable electricity achievement: As of 2024, ASM achieved 100% renewable electricity usage across all operations (2023: 88%), supported by unbundled Energy Attribute Certificates (EACs), green tariffs, and green premiums. The remaining Scope 2 market-based emissions relate to district heating.

Renewable electricity sources: Renewable electricity from unbundled EACs: 97% in 2024 (96% in 2023); bundled EACs: 3% in 2024 (4% in 2023). A solar power system at the Singapore facility achieved full production capacity in 2024 (installed December 2023).

Gross Scopes 1, 2, 3 and Total GHG emissions

Overview

ASM International reports greenhouse gas (GHG) emissions across Scopes 1, 2, and 3 for the year ended December 31, 2024, with comparative data for 2023 and baseline year 2021. The company has achieved Science Based Targets initiative (SBTi) verification of its near- and long-term net-zero GHG targets.

2024 GHG Emission Results

*Reduction target for Scope 1+2 combined from 2021 base year
**Reduction target per EUR of value added (gross profit) from 2021 base year

Scope 3 Breakdown by Category

Note: Categories 8, 10, 13, 14, and 15 are not applicable to ASM's business model.

Total GHG Emissions

GHG Intensity Metrics

Revenue and gross profit figures derived from the Consolidated statement of profit and loss in section 28.1.

Biogenic Emissions

Methodology and Scope Notes

Scope 1 (Direct emissions): Originate from primary data sources. For limited cases, ASM applies country approximations.

Scope 2 (Indirect emissions from energy):

• Determined by converting energy use bills (utility and consumption data) to tonnes CO₂e, utilizing country-specific emission factors derived from standard emission factor databases.
• For a limited number of leased sites, consumption figures are estimated based on building size, occupancy, and operational hours.
• Market-based figures reflect renewable electricity procurement (100% renewable electricity achieved in 2024, up from 88% in 2023).
• Remaining Scope 2 market-based emissions relate to district heating.

Scope 3 by category:

• Category 1 (Purchased goods and services): Estimated using an economic-environmental input-output (EEIO) model, applying a spend-based approach that utilizes the EPA NASCI database. While this method may not fully capture the impact of specific greenhouse gas reduction initiatives, methodologies and parameters are reviewed annually to incorporate the latest insights.

• Category 4 (Upstream transportation) and Category 9 (Downstream transportation): Calculated using a fuel-based and distance-based method. Uncertainties may arise from variations in supplier reporting and tracking of exact shipment routes.

• Category 11 (Use of sold products): Calculated using a process-based method to determine the energy consumption of specific reference products. This calculation follows independent tests aligned with the SEMI S23-1021E standard. Lifetime emissions are assessed and accounted for at the point of sale, using location-based emission factors and assuming an average operational lifespan of 15 years. This timeframe is derived from peer analysis, expert input, and internal analysis of service records. The significant decrease in 2024 was driven by a favorable product sales mix, with increased adoption of ALD tools which have relatively higher energy-efficiency compared with other deposition technologies.

General approach:

• Base year 2021 was selected as it marks the start of detailed GHG-emissions tracking at ASM and represents a typical operational year.
• The company confirms it is not excluded from the EU Paris-aligned benchmarks based on the stated exclusion criteria and does not invest in coal, oil, and gas-related activities.
• Performance is monitored quarterly and reported annually against SBTi-verified targets.

Anticipated financial effects from material physical and transition risks and potential climate-related opportunities

Qualitative assessment of financial impacts

Consideration has been given to the potential financial impacts of climate change related risks on the carrying value of the company's non-current assets (e.g., goodwill, other intangibles, PP&E) through a qualitative review of the company's climate change risk assessment. In addition, the company included sensitivity tests into the impairment test to address the potential increase in expenses due to climate change.

This review did not identify any material financial reporting impacts.

Reference to climate risks and opportunities

E1-9 is included in Note 5 and incorporated by reference (as stated in the ESRS cross-reference table under E1-9: "16.1 Climate risks and opportunities; DR 68 is included in Note 5 and incorporated by reference").

Pollution of air, water and soil

Environmental releases - Metrics definitions

Note: The excerpts provided contain metric definitions and methodologies for pollution-related indicators, but do not contain actual quantified values for 2024 or comparative years.

Policies related to water and marine resources

ASM has disclosed one specific policy related to water and marine resources.

Water Policy

• Publication date: Published in 2023
• Key content/principles:
  • Sets out how ASM collaborates and engages in water security
  • Aligns to recognized water stewardship standards
  • Sets targets to measure progress on water efficiency
  • Prioritizes key facilities for water efficiency and reclaim and recycling improvements based on water intensity and water stress
• Implementation approach: In 2024, ASM continued implementation of the water policy, prioritizing key facilities for water efficiency and reclaim and recycling improvements
• Target: Water withdrawal intensity target for 2021-2025 is to maintain or reduce normalized water withdrawal intensity at or below 2020 level of 91 m³/€ million revenue across all operations, achieved through reduction, reuse, or restoration methods
• Compliance commitment: ASM ensures full compliance with water-effluent quality within regulatory control parameters, adhering strictly to regulatory discharge limits and permit conditions
• Governance: Implementation overseen through ISO 14001 Environmental Management System (EMS) framework, certified globally since 2003, with certification last refreshed in Q4 2024

Water quality and discharge management:

• ASM actively ensures discharges meet local quality requirements, enabling adequate treatment before returning to natural ecosystems
• In some regions, pre-treats effluents before discharging to publicly owned treatment works (POTW) facilities
• In regions where municipalities do not accept industrial wastewater, ASM collects and transports wastewater offsite for appropriate treatment
• Ensures no leaks or unintended releases within wastewater collection system

Water consumption

Total water withdrawal

Methodology: Measured using water meters, invoices from water utilities, or estimations based on water-usage patterns and equipment specifications. Extrapolations are at times made for the last period of the reporting year. For smaller locations (e.g., shared sales offices) where source data may be limited, estimates are made.

Water withdrawal from water-stressed regions

Methodology: Defined by WRI Aqueduct analysis as the ratio of total water withdrawals to the available renewable surface and groundwater supplies.

Water reuse and recycling

ASM's Phoenix site has been operating a wastewater treatment and reclaim and recycling system since 2019, which has saved an estimated 225,200 m³ of water annually, including in 2024. In 2024, an upgrade to the cooling tower auto-controller saved an additional 2,000 m³ per year.

Water use by location

Four primary research and development centers in South Korea, Japan, Phoenix (U.S.), and Catania, Italy accounted for 63% of water consumption in 2024. This water is mainly used for cooling and abatement processes related to equipment operations.

Water targets

ASM's water objective for 2021-2025 is to maintain or reduce normalized water withdrawal intensity at or below the 2020 level of 91 m³/€ million revenue. In 2024, normalized water withdrawal per revenue was 76 m³/€ million revenue.

Water quality and discharge

ASM ensures full compliance with water-effluent quality within regulatory control parameters. Discharges meet local quality requirements, enabling adequate treatment before returning to natural ecosystems. In some regions, ASM pre-treats effluents before discharging to publicly owned treatment works (POTW) facilities. In other regions, wastewater is collected and transported offsite for appropriate treatment and management.

Note: ASM does not use ultra pure water (UPW) in any of its operations. No specific water discharge volumes are disclosed.

Non-hazardous waste: 2,359 tonnes in 2024, of which 82% is reused or recycled

ASM focuses on resource conservation and waste management as part of its commitment to responsible resource stewardship.

ASM's people-related policies are grounded in our core values:

Core Values:

• We Care: Focus on employee wellbeing and safety
• We Innovate: Creating opportunities for professional growth and learning
• We Deliver: Performance and accountability culture

Best Practice Behaviors (ACE):

• Accountability: Taking ownership and responsibility
• Collaboration: Working together effectively
• Empowerment: Enabling people to excel and develop their potential

People Strategy: Our people are at the heart of our company's success. We strive to create a safe, inclusive, inspiring, and motivating workplace where our employees are able to use their talents, excel, and develop their potential as we work together to deliver the cutting-edge technologies of tomorrow. As our workforce rapidly expands, we are focusing on strengthening ASM through developing our talent pool with more long-term career progression and training, and strengthening and unifying our culture.

Human Rights: The introduction of our first Human Rights policy reinforces our commitment to ethical and responsible business practices.

ASM engages with its workforce through various mechanisms:

Employee Engagement Survey: Our 2024 employee engagement survey had a high response rate of 95%, demonstrating strong employee participation in feedback processes.

Culture and Values Integration: We prioritize a workplace that fosters Accountability, Collaboration and Empowerment (ACE), behaviors that support our values and enable our culture. We continued to take steps to strengthen our culture, which is key to attracting and retaining talent, and to promote accountability, collaboration, and empowerment (ACE) as best-practice behaviors.

Training and Development: We continued to invest in the development of our people through our 'Lead Ahead' program, which focuses on enhancing leadership skills for people managers at all levels. We also provided 53,103 technical training hours in 2024.

The company focuses on creating an attractive professional and learning environment for employees, working at the edge of what is technologically possible.

Taking action on material impacts on own workforce

Reskilling and Upskilling Initiatives

Description: Multi-year strategic roadmap advancing reskilling and upskilling initiatives

Scope: Own operations

Time horizon:

• Ongoing in 2024
• Planned continuation in 2025

Specific actions planned for 2025:

• Targeted training for talent acquisition team
• Training for People Partners
• Training for People managers

Link to policy: Part of DEI multi-year strategic roadmap

Unconscious Bias and Psychological Safety Training

Description: Global training program to foster a more aware and empathetic culture

Scope: Own operations

Reach in 2024: Over 1,000 employees engaged

Integration: Topics incorporated into LEAD Ahead program to increase manager excellence

Link to policy: Part of DEI initiatives to ensure every employee feels respected, valued, and equipped to contribute

ASM Women's Initiative Network (WIN)

Description: Network connecting female employees to support female talent, foster leadership, allyship, and drive gender inclusivity

Scope: Own operations (global, across multiple regions)

2024 activities:

• Skill-building workshops
• Networking events
• Family days
• International Women's Day initiatives
• International Women in Engineering Day to attract female talent

Expected outcomes: Build sense of community and belonging

Link to policy: Part of DEI framework and initiatives

Leadership Acceleration Program for Women

Description: Newly designed program aimed at expediting readiness for leadership roles at ASM

Scope: Own operations

Time horizon: Designed in 2024

Integration with existing initiatives: Expands on Executive Committee mentoring of female talents focusing on professional growth and career development

Link to policy: Equity commitment and DEI framework

Hiring Manager Interview Training

Description: Training to minimize unconscious bias in recruitment process

Scope: Own operations

Geographic coverage: Asia, US, and Europe

Time horizon: Implemented in 2024

Link to policy: Equity initiatives and DEI framework

Referral Program

Description: Recruitment referral program aligned with International Women's Day and International Women in Engineering Day

Scope: Own operations

Time horizon: Launched in 2024

Expected outcomes: Attract female talent

Link to policy: Gender diversity focus and DEI framework

Employee Resource Groups (ERGs)

Description: Voluntary groups initiated and led by employees to promote inclusive culture focused on connection, belonging and allyship

Scope: Own operations

Current groups:

• WIN (Women's Initiative Network)
• SHADES
• Sustainability Ambassador Network
• We Care

Future plans: Expansion based on employee interests

Expected outcomes: Provide leadership with insights into perspectives of employee groups who may be more vulnerable or marginalized

Link to policy: DEI framework and inclusion objectives

Gender Pay Review Process

Description: Continuous assessment of gender-pay ratio across all levels

Scope: Own operations (global)

Time horizon: Ongoing, annual

Integration: Formal part of annual performance evaluation

Expected outcomes: Transparency and accountability in compensation and promotion processes; ensure fairness in remuneration practices

2024 results:

• Gender pay gap - average: 0.98 (2023: 0.98)
• Gender pay gap - median: 0.97 (2023: 0.98)

Link to policy: Rewards philosophy, equity commitment, and DEI framework

DEI Framework and Local Initiatives

Description: Global DEI framework guiding local initiatives and informing global action plans

Scope: Own operations (global)

Integration: Embedded into core people processes including recruitment, performance reviews, promotions, and compensation

Link to policy: DEI policy aims for no single gender to hold more than two-thirds of seats on Supervisory and Management Boards

Diversity Target: We are focused on increasing the participation rate of women, with a target of 20% women workforce by 2025. We were at 18% at the end of 2024 (2023: 17%).

Safety Target: Our 2030 target is to reduce our total recordable injury rate to 0.15, a reduction of 38% compared to 2024 (0.24). Our vision is ZERO HARM!, where we foster a safety leadership culture regardless of role. This means we strive to prevent all incidents and injuries, regardless of severity or impact.

Total Employees: 4,632 employees (headcount)

Workforce Composition:

• 69 nationalities represented in our workforce
• 25% of employees work in R&D
• Following significant growth in previous years, our total headcount remained steady at approximately 4,600 FTEs in 2024
• We hired nearly 600 new employees in 2024, focusing on R&D, field support and customer-facing roles

Employee Turnover: Voluntary staff turnover remained relatively low at 7% in 2024

Characteristics of non-employees in the undertaking's own workforce

Number and type of non-employee workers

ASM employs contingent workers in addition to permanent employees. The company did not employ people on a non-guaranteed hours basis.

The company tracks contractors and on-site contractors specifically in relation to:

• Health and Safety coverage: In 2024, 100% of ASM employees and on-site contractors were covered by the OHS management system
• Training: Contractors are included in ethics training completion metrics alongside internal active employees, new college graduates, expat employees, and managed contractors

Methodology

Workforce counting methodology: ASM reports workforce data using headcount methodology, as evidenced in the workforce demographics table showing employee headcount by region and contract type.

Ethics training metrics: Training completion rates are calculated as the percentage of internal active employees, new college graduates, expat employees, and managed contractors who completed all required ethics trainings during the reporting year, as tracked in the company's learning management system.

Worker categories tracked

ASM's appendix section on worker categories indicates the following non-employee categories are tracked (marked with X):

Note: The company states that engagement activities focus on the supplier companies, versus individual workers.

Supply chain workers

While not part of own workforce, ASM also tracks certain characteristics related to supply chain workers:

• Total number of ASM suppliers: >1,000 (both 2023 and 2024)
• Number of critical and strategic direct materials suppliers: 80 (2023), 87 (2024)
• Number of indirect materials and services suppliers in scope of sustainability program: 21 (2024)

Collective bargaining coverage and social dialogue

Multi-employer collective bargaining plan (Netherlands)

ASM International has 190 eligible employees in the Netherlands participating in a multi-employer union plan (pension fund Metalektro PME) determined in accordance with collective bargaining agreements effective for the industry. This multi-employer union plan covers approximately 1,533 companies and approximately 183,000 contributing members. ASM's contribution to the multi-employer union plan was less than 5% of the total contribution to the plan.

Works council and employee engagement

ASM engages with employees through works councils, employee resource groups, and engagement surveys as part of its regular stakeholder engagement framework.

Collective bargaining coverage

Restricted share plan participation

In 2024, 64% of ASM's global headcount was eligible to the restricted share plan.

Gender Diversity:

• Female employees: 18% in 2024 vs 17% in 2023
• Target: 20% women workforce by 2025

Nationality Diversity:

• 69 nationalities represented across our global workforce

ASM is focused on increasing the participation rate of women and maintains a diverse global workforce representing many different nationalities.

Adequate wages

Benchmark used

ASM conducted an adequate wage assessment in 2024 using living wage benchmarks, specifically referencing the Anker methodology with data sourced from WageIndicator.

From the sustainability statement:

"Our 2024 assessment was in line with applicable benchmarks, including the Anker methodology, for which we utilized data from Wageindicator. The results showed that an adequate wage and living wage was paid to 100% of our employees globally."

Coverage

100% of ASM's global workforce was assessed and found to earn at or above the living wage benchmark.

Geographic scope

Global — the assessment covered all ASM employees worldwide with no exclusions mentioned.

Policy commitment

ASM's Global Employment Standards state:

"ASM strives for all employees globally to be compensated with an adequate wage that meets or exceeds the requirements for a decent living standard."

Value chain extension

ASM is working to extend living wage principles to its supply chain:

• In 2024, ASM continued its partnership with the Responsible Business Alliance (RBA) and the RBA Living Wage Task Force
• The Task Force is finalizing a practical guide for integrating living wage principles into supplier operations
• ASM plans to survey suppliers on living wage in 2025 using these guides
• The company "remains focused on highlighting the critical importance of providing a living wage globally" throughout its value chain

Targets

No specific numerical target or timeline is disclosed for maintaining 100% coverage, but ASM commits to ongoing assessment and states it will begin supplier engagement on living wage in 2025.

Methodology details

• Benchmark: Anker methodology via WageIndicator data
• Frequency: Annual assessment (2024 results reported)
• Scope: Own employees only (suppliers to be engaged starting 2025)
• No information on whether contractors are included in the 100% figure

Social protection

Management Board pension and insurance benefits

Members of the Management Board are entitled to pension and fringe benefits or perquisites such as a company car (or allowance), representation and expense allowance, and medical, disability, and other insurances in line with local market practice.

Pension arrangements:

• Management Board members have the opportunity to participate in a defined contribution plan for their salary up to the fiscal maximum (2024: €137,800)
• For salary above this maximum, members receive compensation equal to the age-dependent employer pension contribution
• Pension contributions are age dependent and vary from 7.2% to 28.4% of the pensionable salary
• Management Board members contribute 4.6% of their pensionable salary, and ASM pays the remaining part
• Members have the option to participate in a net pension plan offered by the company or to have the compensation paid out in cash

Employee retirement plans

Netherlands (multi-employer defined benefit plan):

• 190 eligible employees in the Netherlands participate in a multi-employer union plan (pension fund Metalektro PME)
• The multi-employer union plan covers approximately 1,533 companies and approximately 183,000 contributing members
• ASM's contribution to the multi-employer union plan was less than 5% of the total contribution to the plan
• For 2024, the contribution percentage was 27.98%
• Coverage ratio as per December 31, 2024: 113.1% (December 31, 2023: 109.4%)
• Plan accounted for as a defined contribution plan

Japan (defined benefit plan):

• Employees in Japan participate in defined benefit plans
• Average-pay plans based on employees' years of service and compensation near retirement

Other employees:

• The company has retirement plans covering substantially all employees
• The principal plans are defined contribution plans, except for the plans in the Netherlands and Japan
• Payments to defined contribution plans are recognized as an expense as they fall due

US deferred compensation plan

• Non-qualified deferred compensation plan enables more senior US employees to postpone a percentage of their salary and/or bonuses
• Expenses were close to nil relating to this plan in 2024 and 2023
• As of December 31, 2024, liability under deferred compensation plans was €17.2 million (2023: €8.1 million)
• Related compensation plan assets are €15.9 million (2023: €7.4 million)

Technical Training Hours: 53,103 technical training hours provided in 2024

Training Programs:

• Lead Ahead Program: We continued to invest in the development of our people through our 'Lead Ahead' program, which focuses on enhancing leadership skills for people managers at all levels
• Focus on developing our talent pool with more long-term career progression and training
• Creating an attractive professional and learning environment for our employees
• Investment in employee development, training, and engagement as we work to strengthen our organization

Health and safety metrics

Health and safety results from own workforce

Multi-year trend data

Coverage: In 2024, 100% of ASM employees and on-site contractors were covered by the company's OHS management system, ensuring their safety and well-being are actively managed.

Methodology: ASM uses the US OSHA (Occupational Safety and Health Administration) recordkeeping criteria. These criteria include fatalities, loss of consciousness, days away from work, restricted work or job transfer, medical treatment beyond first aid, diagnosed cases of cancer, chronic irreversible diseases, fractured or cracked bones or teeth, punctured eardrums, and specific criteria for needlestick/sharp injuries, medical removal, hearing loss, and tuberculosis. Rates are calculated per 100 FTE (full-time equivalent employees).

Target: By 2030, ASM aims to achieve a recordable injury rate of 0.15, representing a 38% reduction from the 2024 baseline result of 0.24.

Compensation metrics

Pay gap

ASM discloses gender pay ratio metrics for 2023 and 2024:

ASM states: "In our pursuit of equity, ASM continuously assesses the gender-pay ratio across all levels, ensuring fairness in our remuneration practices. Our gender-pay review is a formal part of our annual performance evaluation, providing transparency and accountability in compensation and promotion processes."

The company reports that it strives to provide equitable opportunities for all employees while ensuring advancement and recognition are based on individual merit and performance.

Remuneration ratio

ASM's CEO pay ratio in 2024 was 35.

The ratio is calculated by dividing the CEO's remuneration by the average remuneration of all employees. The CEO's remuneration includes the total annualized base salary and bonus as well as share-based payment (extrapolated to a full-year LTI value based upon three consecutive yearly grants with each a 36-month vesting period). The average remuneration of all employees is calculated by dividing the total personnel costs (wages, salaries, bonuses, and share-based payments), minus the CEO's remuneration, by the total number of employees (minus CEO).

The company notes: "Although the pay ratio is in line with the anticipated internal development of pay levels, it is higher compared to last year because of the higher LTI 'at target', but still at risk, for the new CEO. The pay ratio is at the lower end compared to the AEX listed companies."

CEO pay ratio trend:

Methodology

Gender pay gap: The gender pay gap is calculated using headcount and adjusted for purchasing power differences between countries, with disclosure of both average and median values. Data is sourced from the ASM HR system on the last day of the reporting period. The difference between female and male pay is expressed as a percentage of the male pay level.

CEO pay ratio: The pay ratio assessment was done against ASM's current CEO's remuneration, H. M'Saad. The 'other items' offered to G.L. Loh were not considered for the assessment, making the remuneration offered to H. M'saad that of the highest paid individual. The ratio uses the CEO-to-median methodology as per CSRD requirements.

Incidents, complaints and severe human rights impacts

Grievance mechanisms and complaints

ASM places a strong emphasis on providing accessible grievance mechanisms for workers in the supply chain. The whistleblower channel is available to all stakeholders, including supply-chain workers, allowing them to report any issues confidentially and without fear of retaliation. ASM requires suppliers to implement similar whistleblower mechanisms that ensure confidentiality, anonymity, and protection for employees. The effectiveness of these mechanisms is assessed through supplier audits, which often include direct worker interviews to verify accessibility and reliability.

In addition to internal mechanisms, ASM benefits from participation in RBA and RMI programs, which also provide anonymous channels for raising concerns. These multi-channel grievance systems ensure that supply-chain workers have multiple avenues to report grievances and contribute to the continuous improvement of working conditions throughout the value chain.

Supplier/supplier worker issues

Methodology: The number of grievances received through the grievance process described under the Ethics section.

Code of conduct breaches

The company cross-references S1-17 to section 19.2 "Ethics, bribery, and corruption - Speaking up; 2024 breaches or our code of conduct" in the index.

Reported confidential concerns are managed by the Ethics Committee. Cases are reviewed by the Ethics Committee to ensure data accuracy and to avoid double-counting of similar or identical issues.

Note: The excerpt indicates this metric is defined but the actual values for 2023 and 2024 are not provided in the excerpts supplied.

Vulnerable worker groups

ASM integrates third-party evaluations and data insights to identify vulnerable worker groups that may be at risk of human-rights violations. Groups identified as higher risk for involuntary labor, health & safety incidents, and/or excessive working hours include:

In ASM's direct supply chains:

• Upstream (Minerals sourcing)
• Logistics
• Contract or temporary workers
• Union workers
• Young workers
• Female workers
• Foreign or migrant workers

Severe human rights impacts - Focus areas

ASM tracks year-over-year percentage improvement at supplier sites in the following focus areas:

• Risk for major health and safety incidents
• Involuntary labor exposures
• Risk of child labor or young worker non-compliance
• Chance of violating requirements on rest days and working hours standards

Note: ASM is utilizing 2024 as a baseline year to assess supplier-engagement efforts. Concrete targets to be developed in 2025.

Supplier audit coverage

Methodology: The number of workers at audited facilities is based on records submitted through the RBA online platform or collected by the Supply Chain Sustainability team.

Fines, penalties, and sanctions

No specific amounts of fines, penalties, or compensation related to human rights incidents or discrimination are disclosed in the provided excerpts.

While specific community policies are not detailed in the report extract, ASM demonstrates commitment to affected communities through its purpose and mission:

Purpose: Improve people's lives through advancing technologies that unlock new potential

Mission: Enable our customers' success by creating leading-edge semiconductor process products, services and new materials

Community Impact: We serve society by helping our customers produce chips for the advanced electronics that deliver improvements and opportunities across many aspects of our lives. Our innovations and leading-edge technologies enable our customers and our industry to develop faster and more energy‑efficient semiconductors.

Social Contribution: Through these efforts, we aim not only to minimize our own footprint but also to help our customers reduce their environmental impact, contributing to broader societal benefits through technological advancement.

Taking action on material impacts on affected communities

ASM's community engagement initiatives in 2024 focused on three pillars: promoting STEM education, uplifting underserved communities, and accelerating environmental sustainability. The company operates under its core value of 'We Care'.

Arizona: Urban Forestry Partnership

Action: Multi-year urban forestry partnership with Arizona Sustainability Alliance (AZSA)

Scope: Own operations (Arizona location)

Time horizon: Multi-year partnership

Resources allocated: €76,000 annual investment

Activities: In 2024, ASM supported four tree-planting events at Cordova Elementary School, Festival Fields Park, and Orangewood Park, planting a total of 87 native and drought-tolerant trees.

Expected outcomes:

• Improving local air quality
• Reducing stormwater runoff
• Enhancing community Tree Equity scores, particularly in underserved areas

Arizona: Verde River Conservation Partnership

Action: Partnership with The Nature Conservancy (TNC) - Restoring Flows program

Scope: Own operations (Arizona)

Time horizon: Multi-year partnership

Resources allocated: US$300,000 total commitment

Activities: Funding critical conservation projects including the Restoring Flows program, which allows local farms (e.g., Hauser Farms near Sedona) to modernize irrigation systems to restore watershed and flows to Arizona's Verde River.

Expected outcomes:

• Save nearly 140 million gallons of water per year for the Verde River
• Strengthen long-term resilience of the Verde River (critical water supply for Phoenix Metro area)

Singapore: Food Distribution Partnership

Action: Partnership with North West Community Development Council

Scope: Own operations (Singapore)

Time horizon: 2024

Activities: Large-scale food distribution program with pop-up market providing nourishing food items to those facing economic hardships.

Expected outcomes:

• Provided essential supplies to 500 individuals from rental-unit households
• Reduce waste through innovating new community outreach models

Ireland: Community Farm Initiative

Action: Volunteering at local organic community farm

Scope: Own operations (Ireland)

Time horizon: 2024

Activities: ASM employees volunteered to help prepare ground for spring planting at a farm that grows organic vegetables for families in need.

Expected outcomes: Support local community well-being and environmental sustainability

Taiwan: Science Train Program

Action: Taiwan Science Train program

Scope: Own operations (Taiwan)

Time horizon: 2024

Activities: Hands-on science experiments designed to spark curiosity and interest in STEM fields, simplifying complex semiconductor processes into interactive activities.

Expected outcomes:

• Engaged more than 1,000 children
• Nurture next generation of innovators
• Foster deeper understanding of STEM among young learners

Japan: Community Partnership with Habitat for Humanity

Action: Partnership with Habitat for Humanity at Bott Memorial Home

Scope: Own operations (Japan - Machida City)

Time horizon: 2024

Activities: Around 18 ASM employees and 11 student volunteers conducted community cleanup, clearing debris and gutters. Contributed to establishment of a craft room at the orphanage facility.

Expected outcomes:

• Enhanced quality of children's living environment
• Provide opportunities for creativity and skill development

The Netherlands: Roparun Sponsorship

Action: Main sponsor of Team 201 in the Roparun

Scope: Own operations (Netherlands)

Time horizon: 2024

Activities: Sponsorship of team participating in 500-kilometer relay run from Rotterdam to Paris supporting palliative cancer care.

Expected outcomes: Cover team's operational expenses to enable fundraising for palliative care services

Corporate Culture: ASM's corporate culture is built on core values and best practice behaviors:

Core Values:

• We Care: Focus on stakeholder wellbeing and responsibility
• We Innovate: Continuous innovation and technological leadership
• We Deliver: Performance, accountability and results

Best Practice Behaviors (ACE):

• Accountability: Taking ownership and responsibility
• Collaboration: Working together effectively across the organization
• Empowerment: Enabling people to excel and make decisions

Ethical Business Practices: The introduction of our first Human Rights policy reinforces our commitment to ethical and responsible business practices.

Culture Strengthening: We continued to take steps to strengthen our culture, which is key to attracting and retaining talent, and to promote accountability, collaboration, and empowerment (ACE) as best-practice behaviors.

Purpose and Mission Integration: Our purpose is to improve people's lives through advancing technologies that unlock new potential. Our mission is to enable our customers' success by creating leading-edge semiconductor process products, services and new materials.

We prioritize a workplace that fosters Accountability, Collaboration and Empowerment (ACE), behaviors that support our values and enable our culture.

Supplier Partnerships: Our suppliers are key partners. As we grow our business, the opportunities for our suppliers increase. ASM continues to expand its global supply chain to support the need for technology, capacity, flexibility, and sustainability.

Collaborative Value Creation: Together with our suppliers, we can create positive impact for our stakeholders, the planet, and society overall – well beyond our individual scale.

Sustainable Supply Chain: We strive to further build on a sustainable, responsible supply chain, with a focus on areas such as worker safety, environmental footprint, and human rights.

Enhanced Engagement Framework: As part of our responsible supply chain efforts, we have strengthened our supplier engagement framework. This includes enhanced due diligence practices and capacity-building programs that help suppliers align with our stringent environmental and social responsibility standards.

Continuous Improvement: By fostering a culture of continuous improvement, we ensure that sustainability remains a shared goal across our entire value chain.

Supply Chain Collaboration: Critical to our success is close and early collaboration with leading customers and suppliers, global research institutions, such as imec, and key universities.

Materials and Supplies: €1,141 million in materials and supplies spend in 2024.

Supplier Sustainability Engagement: We also continued to engage with our suppliers on sustainability topics. By 2024, 96% of our critical suppliers have submitted their climate disclosures (vs 88% in 2023).

Prevention and detection of corruption and bribery

ASM International has established policies to prevent and detect corruption and bribery as part of its business conduct framework.

Code of Business Conduct policy

• Key content/principles: Incorporates the RBA Code of Conduct standards framework. Outlines the principles and standards that govern business conduct. Provides clear guidance on ethical decision-making and reinforces commitment to legal compliance, transparency, and accountability. All employees are required to adhere to this code at all times and to speak up in case they observe misconduct.

• Scope: Management Board, Executive Committee, employees worldwide, consultants, contractors, temporary employees, and critical and strategic suppliers

• Public availability: Available on the company website

• Links to international standards: Incorporates the RBA Code of Conduct standards framework

• Monitoring: Training provided to all employees in multiple languages. Bi-annual ethics training refresher for all employees (92% completion rate in 2024); ethics training for new employees (95% completion rate); dedicated intranet page, reference materials, and tools provided. Reports of potential violations can be made through the SpeakUp! procedure, directly to management, the People team, or the Global Compliance Officer. Updates on outcomes of investigations and status of business-conduct measures reported quarterly to the Management Board and bi-annually to the Supervisory Board.

(Anti-)Bribery and Corruption policy

• Key content/principles: Zero-tolerance approach to bribery and corruption. Prohibits any form of bribery, whether direct or indirect.

• Scope: All employees, suppliers, and business partners

• Monitoring: ASM periodically conducts audits to ensure adherence to this policy and uses a suite of measures to prevent and detect any unlawful behavior. Anti-Corruption and Bribery training for at-risk functions (97% completion rate in 2024). Annual ESG desktop audits of major locations cover the business ethics program, with deep-dive assessments conducted where needed. In 2024, there were no convictions and no fines for violation of anti-corruption and anti-bribery laws.

SpeakUp! procedure (whistleblower protection)

• Key content/principles: Ensures all reports are treated confidentially and investigated promptly and independently. Committed to always protecting the rights of whistleblowers.

• Scope: Internal and external stakeholders

• Public availability: Publicly available procedure with third-party hosted SpeakUp! channel

• Links to international standards: Set up in accordance with the EU Directive 2019/1937 that helps ensure proper protection measures are in place

• Who oversees: Ethics Committee ensures effective follow-up to concerns that have been raised, the independence of investigators through ensured separation of the chain of management involved, increased awareness of Code of Business Conduct, maintenance and deployment of investigator training materials, and support in investigations as needed

Business-conduct risk management framework

ASM's management system includes 18 underlying business-conduct policies, including fair competition, gifts, entertainment and hospitality, corruption and improper advantages, and anti-fraud. The approach to managing anti-bribery and anti-corruption (ABAC) risks aligns with the company's risk-management and internal-control framework, which is based on the three lines of defense model.

Incidents of corruption or bribery

Confirmed incidents

In 2024, there were zero confirmed incidents of corruption or bribery.

Convictions and fines

In 2024, there were no convictions and, consequently, no fines for violation of anti-corruption and anti-bribery laws.

Disciplinary actions

None of the confirmed Code of Business Conduct violations in 2024 related to bribery or corruption. No employees were dismissed or disciplined due to corruption or bribery.

Contracts terminated

No data disclosed regarding contracts with business partners terminated or not renewed due to corruption or bribery.

Investigation procedures and speak-up mechanisms

ASM has a zero-tolerance approach to bribery and corruption. The company's Anti-Bribery and Corruption policy prohibits any form of bribery, whether direct or indirect, and applies to all employees, suppliers, and business partners. ASM periodically conducts audits to ensure adherence to this policy and uses a suite of measures to prevent and detect any unlawful behavior.

The SpeakUp! procedure provides a confidential mechanism for reporting concerns about business conduct and human-rights violations, ensuring a safe and responsive platform for all employees. The procedure is publicly available and ensures that all reports are treated confidentially and investigated promptly and independently. ASM has established secure channels for reporting concerns for internal and external stakeholders through a third-party hosted SpeakUp! channel. The company is committed to always protecting the rights of whistleblowers, in accordance with EU Directive 2019/1937.

The Ethics Committee, made up of regional leaders from the Legal, People, and sustainability departments, operationalizes the business conduct program globally. The Ethics Committee ensures effective follow-up to concerns raised, maintains independence of investigators through separation of the management chain involved, provides increased awareness of the Code of Business Conduct, and supports investigations as needed.

Updates on the outcomes of investigations and the status of business-conduct measures, including in relation to anti-bribery and corruption, are reported quarterly to the Management Board and bi-annually to the Supervisory Board.

2024 breaches of Code of Conduct

Training

All employees receive ethics training, with a 92% completion rate for bi-annual refresher training and 95% for new employees in 2024. At-risk functions (sales and procurement departments) receive dedicated anti-corruption and bribery training, with a 97% completion rate in 2024.