LPKF Laser & Electronics : Non-financial Report 2023

Non-Financial Group Report 2023

2

AT A GLANCE

LPKF LASER & ELECTRONICS SE

Non-Financial Indicators 2023

	2023	2022
Proportion of women at first management level (in %) LPKF SE	36	27
Proportion of women at second management level (in %) LPKF	12	14
SE
Sickness rate (production sites) (in %)	6.15	6.77
Turnover rate (in %)	11,09	9.82
LTIFR (in %)	1.8	0.4
Training days per employee	1.27	1.01
Proportion of recyclable materials in the total waste volume	80.7	68.0
(in %)
Proportion of green electricity at the production locations	99.6	99.2
(in %)
Water consumption (in m³)	4,936	4,428
CO₂ emissions in the Group (in t)*	2,900	3,998
CO₂/ revenue (in t per €1 million)*	23	32
R&D (in %)	13.4	13.4
Error rate	36	27
*After compensation

Detailed information about our goals can be found in Section 1.6. ("Goals").

Non-Financial Group Report 2023

3

CONTENT

At a glance	2
Foreword by the Management Board	4
Business model	6
Strategy	7
Environment	21
EU taxonomy	30
Employees	36
Society	45

Non-Financial Group Report 2023

4

FOREWORD BY THE MANAGEMENT BOARD

Garbsen, 25 April 2024

Ladies and Gentlemen,

As a technology company, we have a responsibility towards our employees, the environment and future generations. We are aware of the challenge that climate change poses for humanity. Our precise manufacturing processes enable our customers to use energy and raw materials more efficiently. At the same time, we continuously review our internal processes to minimize our carbon footprint and make a positive contribution within our entire value chain. We are determined to find sustainable solutions and work together towards a better future.

Tomorrows Technology Today

A pioneering spirit is in LPKF's genes. We are constantly working with creativity and perseverance to develop the cutting-edge technologies of tomorrow. In addition to megatrends such as miniaturization, connectivity, CO₂ reduction and demographic change, other ESG factors also play an important role, both for our business development and for our customers. In particular, high-precision, clean and energy-efficient production methods enable progress towards sustainability and digitalization. LPKF plays an active role here as a technology and market leader. We continue to invest more than ten percent of our annual revenue in research and development and thus in innovation - the results benefit the company and our stakeholders in the long term.

Working in partnership with our stakeholders is of central importance to us. Through dialog with our employees, customers, investors and suppliers, we learn which topics are of particular interest to them. These insights flow directly into our processes. In order to take the opinions of our stakeholders even more into account, we conducted a stakeholder survey for the first time as part of our 2023 materiality analysis. We are pleased that the results of this survey confirm the topics that we have already focused on in recent years.

Environment

In our day-to-day business, we see that we make a tangible contribution to protecting the environment. We enable our customers to work faster and more efficiently and to develop innovative, sustainable products. Our Solar division offers solutions for the more cost- effective production of even more efficient solar modules and thus makes a direct contribution to climate protection.

We already have a low carbon footprint in the manufacture of our products, which we want to reduce further. Our ambitious goal is to make our production climate-neutral by 2030. We are already well on the way: by using green electricity and offset gas, we have been able to reduce a significant proportion of our CO₂ emissions. We expect further positive effects from the gradual conversion of our vehicle fleet to electric vehicles and the commissioning of a new solar installation at our headquarters in Garbsen. We also see opportunities to reduce emissions in the area of transportation.To offset some of the remaining CO₂ emissions, we

Non-Financial Group Report 2023

5

are supporting a climate protection project (Gold Standard) to build a solar power plant in India.

Social

In addition, our technologies make a significant contribution in the medical field thanks to their high precision and cleanliness. Our ARRALYZE technology enables faster and more efficient single-cell analyses, particularly in cancer research. ARRALYZE will help to ensure that many more people will be able to afford highly effective individualized cancer therapies in the medium term than is currently possible.

Social factors also play an important role in our entire value chain. We ensure that sustainability standards are adhered to in our supply chain and are further established along this chain.

But none of this would be possible without our employees: they are characterized by a high degree of teamwork, creativity, curiosity and innovation. With our "LPKF moves you" initiative, we not only promote the health of our workforce with sporting activities, but also the social commitment of individual employees.

Governance

Good corporate management and effective corporate governance form an essential basis for our success. In the reporting year, the Supervisory Board was reorganized and is now competently represented in all specialist areas. LPKF has had highly effective control systems in place for many years and we will maintain this high standard in the future.

Only together can we achieve our ambitious goals. This is why sustainability targets are part of the Management Board's remuneration. For the past two years, senior executives have also been measured against ESG targets.

We have been an official member of the UN Global Compact since November 2021. We support the principles of the UNGC in the areas of human and labor rights, environmental aspects and anti-corruption. We want to join forces to actively promote the goals of the United Nations and continuously improve ourselves in the process.

By acting responsibly, we want to continue to meet the challenges facing our society and contribute to a sustainable future with pioneering cutting-edge technologies.

Yours sincerely

Dr. Klaus Fiedler	Christian Witt
Chief Executive Officer	Chief Financial Officer

Non-Financial Group Report 2023

6

BUSINESS MODEL

Object of the business, services and products:

LPKF Laser & Electronics SE (LPKF SE) is a leading provider of laser-based solutions for the technology industry. LPKF laser systems are of crucial importance to the production of printed circuit boards, microchips, automotive parts, solar modules, semiconductor elements, and a large number of other components. The LPKF Glass Foundry also supplies customers from a range of industries with high-precision glass components.

Our customers use our machinery to produce ever smaller and more precise components. At the same time, they can augment the functionality of these components and take advantage of new design opportunities to create products at the cutting edge of technological feasibility, both for industry and consumers. Our energy-efficient and intelligent solutions also actively contribute to the protection of the climate and the environment. We help our customers to become more resource-efficient, to reduce their levels of hazardous substances and waste, and to conserve energy.

Our employees are experts in the field of laser technology and understand how to integrate the laser as a tool into high-performance machinery. We therefore have a significant influence on progress in a number of high-tech fields. Overall, this results in smaller, more powerful and more energy-efficient products, which in turn means improvements in mobility, networking, power generation and digital entertainment.

The shares of LPKF SE are listed in the Prime Standard of the German Stock Exchange.

Supplementary comments:

The information in this report refers, in part, to the 2023 Annual Reportof the LPKF Group. Unless stated otherwise, the information relates to LPKF Laser & Electronics SE and all its subsidiaries.

The consolidated financial statements and the combined management report are audited annually by an independent auditor. Further regular external audits are conducted as part of various certification processes for LPKF SE and its subsidiaries, for example quality management audits.

Note on the key performance indicators: The reported key performance indicators are the company's own indicators (see KPIs with *), but are based on the GRI (Global Reporting Initiative) standards.

This report is a Separate Non-Financial Consolidated Report in accordance with subsections 315b and 315c in conjunction with sections 289c to 289e of the German Commercial Code (HGB) and Article 8 of the Taxonomy Regulation. All links in this report are for further information only and are not part of the Separate Non-Financial Consolidated Report.

Non-Financial Group Report 2023

7

STRATEGY

OUR SUSTAINABILITY CONCEPT

For LPKF, sustainability means acting responsibly to achieve lasting economic success, ecological and social progress and to secure the Company's future. LPKF accepts responsibility for the health and quality of life of its employees, customers and consumers and for the protection of the environment. With its energy-efficient and intelligent solutions, the company wants to make an active contribution to protecting the climate and environment and to advances in medicine. LPKF systems help customers to become more resource-efficient, to reduce their levels of hazardous substances and waste, and to conserve energy (see chapter 2.2 "Resource management").

All sustainability considerations are firmly anchored at Management Board and Supervisory Board level at LPKF. Environmental issues can be found in the areas of responsibility of both Management Board members. In coordination with the Supervisory Board, the Management Board determines the Group strategy and decides on the statements contained therein regarding sustainability issues. The Audit, Risk and ESG Committee of the Supervisory Board also engages with sustainability issues at Supervisory Board level.

With a view to implementing the sustainability strategy as part of the Company's operating activities, rules and processes were set out in the following documents: the Strategy Paper, the LPKF mission statement, the Risk Management Handbook, the Management Handbook, process descriptions, (sustainability) guidelines, the Compliance Code, the German Corporate Governance Code and the LPKF Executive Code of Conduct.

In addition, sustainability matters are also dealt with and reviewed in various departments within the company, such as Product Development, Quality Management, Human Resources, Procurement, Organization, Sales Assistance, Innovation and Communications. The cross- departmental sustainability team that was set up in 2017 collates information on sustainability issues and is also responsible for producing the non-financial Report. The Investor Relations & Treasury department is responsible for reporting.

STRATEGIC ANALYSIS AND ACTION

The LPKF SE business model has been linked to ESG issues since the company was founded. This results not only from legal conditions but primarily from the technologies that make the processes more efficient and sustainable for customers. Driven by the strategic aspiration of technological leadership, LPKF sees this as an opportunity to generate future value for its stakeholders. From the company's perspective, sustainable solutions will also influence the competitive position in the future.

Already in 2021, LPKF launched the "Beaming Sustainability" project throughout the group. Consisting of a total of 17 sub-projects, its objective was the strategic evolution and evaluation of the processes and structures regarding the key sustainability aspects. The subprojects could be broken down into the areas of Human Resources and Community, Supply Chain, Products & Applications, Resources, and Communication & Governance. The project

Non-Financial Group Report 2023

8

could be transferred to the processes in April 2022 and we are continuously and iteratively working on improving our ESG performance.

LPKF has established specific measures with a view to implementing its sustainability concept, such as:

Review and refinement of Group strategy and long-term planning by the Management Board at least once every year, in conjunction with the heads of the business segments and the managing directors of the subsidiaries and following consultation with the Supervisory Board

Regular checking of the results of the management system processes

Regular internal audits

Annual management review.

LPKF SE's quality management system, which complies with DIN EN ISO 9001, describes the interaction between company processes and the requirements placed on executives, products and services.

The LPKF Compliance Code requires all employees to observe applicable laws everywhere and at all times, to respect ethical principles and to adopt sustainable practices. With regard to corporate governance, LPKF obeys the German Corporate Governance Code (Deutscher Corporate Governance Kodex).

The Mission Statementof the LPKF Group, "Success is Teamwork", is also an integral part of the Group strategy and is accessible to all employees in German and English at all sites. It incorporates key action areas and principles related to sustainable development, particularly in the areas of value creation, employees, the environment and society that are relevant for LPKF. Executives and staff are encouraged to act in accordance with the values enshrined in the Mission Statement in their day-to-day dealings with one another and in their contact with customers or suppliers. The Mission Statement also has a role to play in personnel development measures and forms the basis for the Company's Executive Code of Conduct. In the reporting year, the LPKF mission statement was comprehensively revised and a new vision, mission and values were defined. From spring 2024, it will be rolled out throughout the Group and gradually integrated into the processes and principles of the company's processes and principles.

As a technology group, LPKF operates in a dynamic market environment. New opportunities constantly arise from a changing technology landscape and new market requirements. Components are becoming ever smaller, more complex and more precise. Advances in miniaturization and the growing use of nanoscale materials are increasing the complexity of components and demanding the adoption of innovative processing methods. Laser-based processes will contribute substantially to this development. Systematically identifying and leveraging these opportunities is a major factor in the sustainable growth of the LPKF Group. Opportunity management involves closely monitoring new markets and applications, regularly evaluating market analyses and reviewing the focus of the product portfolio.

We focus on both the development of sustainable solutions for our customers and the sustainable manufacturing of our products. Opportunities to promote sustainable

Non-Financial Group Report 2023

9

development exist in particular in the environmentally-friendly applications of laser technology. It generally involves lower tool costs and more energy-efficient and clean operations. For certain applications, chemical processes are being displaced. We are thus making an active contribution to reducing the volume of scrap and waste at our customers. LPKF has its environmental management system certified to DIN EN ISO 14001. A surveillance audit is carried out annually and recertification every three years. This is also intended to address the aspect of sustainable as well as resource-efficient development in the future.

The opportunities are offset by risks associated with the development of new laser-based technologies. Using laser sources as a tool involves risks for the user. We believe it is our responsibility to protect customers and employees from these risks. Our customers are comprehensively informed about and trained on the risks. Furthermore, the occupational safety management system, which is certified to DIN ISO 45001, is a top priority at LPKF (for more details, see Criterion 4.3 "Occupational Safety").

The non-financial aspects are subject to regular controls and are reviewed as part of our management system. Management, planning as well as occupational safety and environmental protection form part of the Integrated Management System and are thus subject to regular review by officers appointed by the Management Board for quality, occupational safety, and the environment and external audits. Just like the current risk situation, they are determined and reported on a monthly basis. Various committees, in addition to the Management Board and the Supervisory Board, examine the indicators and risks each month.

Responsibility for reviewing key performance indicators for environmental aspects currently lies with various different areas and individuals such as Facility Management (energy, waste, emissions), Quality Management or the Hazardous Substances Officer.

A risk management system (RMS) has been set up to guarantee the continued existence of the LPKF Group as a going concern in the long term. The purpose of the RMS is to ensure that risks are detected early on and communicated to the competent decision-makers within the company. This is designed to ensure that appropriate action can be taken to deal with the risks identified and to prevent any loss or damage.

Non-financial risks are systematically recorded and integrated into the company's internal risk management system. LPKF sees this as an important part of its comprehensive monitoring of possible risks that may have endogenous as well as exogenous causes. As part of the 2023 risk assessment, no risks with a very high likelihood of occurrence and serious negative consequences for non-financial aspects were identified for the 2023 reporting year.

MATERIALITY

LPKF SE is a highly specialized, international technology company that operates across a broad social landscape. On account of the various product segments, we are involved in a multitude of sectors, such as the electronics industry, medical technology sector, biotechnology, the automotive industry and the solar industry. In our view, compared with other industries, our operating activities have a lower impact on sustainability

Non-Financial Group Report 2023

10

considerations. Nonetheless, the development of our management system has revealed various sustainability factors of relevance to our company's operations. These are reviewed every year and supplemented or amended as necessary. The last analysis of material non- financial aspects in accordance with the German Commercial Code (HGB) took place in February 2024. In order to analyze the material impact of non-financial aspects on our company and through our activities, we have carried out an expansion of the existing materiality analysis. For this purpose, various stakeholders were included in a survey, including representatives of the stakeholder groups employees, banks and insurance companies, investors and analysts, customers, suppliers, local authorities and the local works councils.

The analysis resulted in the following key topics, to which we can subordinate various fields of action (see Criterion 1.6 "Goals"):

Value creation/Quality - Impact on the sustainable development of the company and its customers

Employees - Impact on employee satisfaction and job security

Environment - Impact on nature and resources

Society - Impact on social development

The impacts of our operating activities on key sustainability considerations are described in Criterion 1.6 ("Goals"). Our laser systems contribute to the environmental aspect in different ways. This is explained in more detail in Criterion 2.2 ("Resource Management").

Information about the opportunities and risks arising from our operating activities can be found in Criterion 1.2 ("Strategic Analysis and Action"). We have set ourselves the strategic objectives stated in Criterion 1.6 ("Goals") for the four aforementioned critical topics according to the HGB.

STAKEHOLDER ENGAGEMENT

As a listed company, LPKF maintains a dialog with a number of stakeholders who have different demands of the company. We firmly believe that regularly exchanging information with different stakeholder groups is vitally important for the internal and public perception of the company. Stakeholders were defined as part of the review of the key non-financial aspects.

Our key stakeholders who have a direct interest in the company's sustainability issues include

Employees and Works Councils

Customers

Suppliers

Shareholders and investors

Local councils

Neighbours