Sustainable corporate management and sustainability strategy

The AIXTRON Group (“AIXTRON” or “the Company”) is a leading provider of deposition equipment for the semiconductor industry. The company was founded in 1983 and is based in Herzogenrath (Aachen region) with branches and representative offices in Europe, the USA, and Asia. At the end of 2023, we employed a total of 1,147 people (headcount). Since 2020, AIXTRON has been listed in the MDAX in addition to the TecDAX.

AIXTRON's business activities include the development, production, and installation of systems for the deposition of complex semiconductor materials, the development of process technologies, consulting, and training as well as customer support.

Our products are used by customers worldwide to manufacture high-performance components for power electronic and optoelectronic applications based on compound semiconductors. These devices are used in a variety of innovative applications, technologies and industries. These include, for example, Micro LED and display technologies, data transmission, communication, signaling and lighting technology, sensors and power electronics based on silicon carbide (SiC) and gallium nitride (GaN), as well as many other high-tech applications.

In the 2023 reporting year, we invested EUR 88 million (2022: EUR

58 million) in research and development with revenues of EUR 630 million (2022: EUR 463 million). This corresponds to around 14% of our revenues, with an equity ratio of 75% (2022: 73%). Asia accounted for the lion's share of our revenues at almost 50% (2022: 68%), followed by Europe at 30% (2022: 14%) and America at 20% (2022: 18%).

Our self-image and our values

In addition to economic success, our business activities also focus on ecological and social challenges. Sustainability is a prerequisite for long-term economic success.

As a supplier to pioneering key industry, we conduct our business prudently and responsibly, taking into account the interests of key stakeholders. The aim is to act sustainably at all levels of the value chain and to further promote sustainability in the company.

Acting responsibly is one of four corporate values at AIXTRON and is therefore a central part of our corporate culture. The Board of Directors and our managers have a particular responsibility and act as role models.

As a future-oriented technology company, efficient and resource-optimized management has always been part of our core business. Thanks to our technologies and systems, semiconductors are becoming more and more efficient and resource-saving, which increases the efficiency of a large number of end products.

This applies to applications from areas such as energy supply, electromobility, entertainment electronics, or communication. Our products thus contribute to reducing not only our own ecological footprint but also that of our customers and especially that of the end consumers in these areas (see also the chapter on innovations as a competitive factor).

Our sustainability strategy

In recent years, sustainability has been increasingly anchored in our company as an important principle of corporate management. The cornerstone for our current strategy was laid in 2018. Two years later, concrete sustainability goals were defined and incentivized by the Supervisory Board and Board of Directors. In doing so, we have also given non-financial goals greater weight.

An important goal as part of our sustainability strategy was to become carbon neutral, which we achieved in 2019 for scope 1 and 2. That is why we purchase gray electricity plus green electricity certificates in the corresponding amount and reduce all unavoidable CO₂ emissions through climate protection projects.

^{Scope 1&2; AIXTRON Index 100 = 7.411 t CO₂e in 2015; Industries Index 100 = Climate targets BMUV (284 Mio. t CO₂e in 1990)}

Since the 2021 reporting year, we have also been reporting on the upstream value chain (Scope 3). This analysis was further optimized in the following reporting years. This is in line with our aim to continuously improve our sustainability activities and the associated guidelines, standards and programs. In this way, we can meet the needs and expectations of our stakeholders even better.

Against this background, we have defined five priority topics in our sustainability strategy.

^{The five core topics of the AIXTRON sustainability strategy}

Some of these topics were defined in our “Sustainability Policy” and are also based on the United Nations Sustainable Development Goals (United Nations Sustainable Development Goals - SDG).

The SDGs we support relate to the following goals:

• No poverty
• Good health and well-being
• Quality education
• Gender equality
• Affordable and clean energy
• Decent work and economic growth
• Industry, innovation and infrastructure
• Responsible consumption and production
• Climate Action
• Life on land

These goals serve as orientation for our daily and strategic work.

^{The SDGs supported by AIXTRON relate to the above goals}

Identification of material issues

For identification of the material topics for the 2023 reporting year, the materiality analysis from the previous year was used and reviewed with regard to the changes from the current financial year. No new material themes were identified, therefore the results are in line with those of the previous year. This materiality analysis was used to evaluate the economic, ecological and social issues relevant to us.

The analysis focused on aspects that have a significant impact on our company. For this purpose, internal specialists and employees who are in constant communication with our stakeholders were surveyed. Through this comprehensive internal survey, which was based on the expertise and many years of experience of our employees, we were also able to cover the external perspective.

As a result, five topic clusters were defined, that are depicted in the overview on page 15.

The following two graphics illustrate the importance of the respective topic complexes as well as their chronological order - across all stakeholders.

^{AIXTRON materiality analysis 2022 and 2023}

In the following overview, the subject areas considered essential by the stakeholders are assigned to the three overarching subject areas of environment, social affairs, and corporate management.

Organizational anchoring

The Board of Directors of AIXTRON SE bears overall responsibility for the topic of sustainability. It is advised by the ESG and Sustainability department and decides on important sustainability issues. The respective departments and branches of AIXTRON SE are responsible for implementing the goals and projects decided by the Board of Directors. The sustainability working group consists of those responsible for the respective topic, e.g. B. innovation, technology, energy management, human resources, works council, compliance, quality assurance or purchasing. The aim is to develop relevant sustainability topics along the corporate strategy, to strengthen awareness of sustainable management, and to anchor it in all areas of the company. Within the working group, the responsible individuals report the progress of individual projects to the ESG and Sustainability department and manage the respective implementation. The cornerstones of our sustainability management are defined in our CSR guidelines and are binding for all units of AIXTRON SE.