DMC Global : 2022 SUSTAINABILITY REPORT (DIGITAL)

2022 SUSTAINABILITY REPORT

DMC GLOBAL INC.

12-Month Period Ending December 31, 2022

Publication Date October 2023

The Flatirons formations near DMC's Colorado headquarters

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Table of Contents

About This Report

Materiality

Forward-Looking Statements

A Letter to Our Stakeholders 2022 Company Overview

About Us

Our Businesses

Sustainability Highlights 2022

Financial Discipline for Sustainable Growth Products & Innovation

Governance People Environment

Our Approach to Sustainability

Our Sustainability Commitment

Our Sustainability Framework

Oversight of ESG and Risk Management

2023 Sustainability Initiatives

Products and Innovation

Our Place in the Value Chain

Arcadia

DynaEnergetics

NobelClad

04	Governance	40
04	Board of Directors	41
04	Business Ethics	46
05	Privacy and Cybersecurity	49
07	People	50
Our Global Team	51
08
Employee Experience	52
11
Health and Safety	57
17
Risk Assessment and Mitigation	58
17
Safety Performance	59
18
Human Rights	61
20
Community	63
20
Environment	64
20
Overview	65
21
Environmental Policy	66
22
Climate Risk Management	67
23
Managing Our Energy Use and Emissions	70
27
Waste	72
30
Water Usage	73
32	Biodiversity	73
33	Appendices	74
34
Environmental & Social Data	75
36
SASB Index	79
38
GRI Index	82
	TCFD Index	89

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About This Report

This Sustainability Report is prepared with reference to the Global Reporting Initiative's (GRI) Core Standards and references disclosure standards of the U.S.-based Sustainability Accounting Standards Board (SASB). We also provide reporting indices for the Task Force on Climate-related Financial Disclosures (TCFD).

Unless otherwise noted, this report covers initiatives and performance metrics of DMC and our subsidiaries for the fiscal year ended December 31, 2022.

References made in this report to "DMC" or the "Company" refer to DMC Global Inc. and our subsidiaries.

Contact Geoff High, vice president of investor relations and corporate communications, at [e-mail] for additional information or questions about this report.

MATERIALITY

Information presented in this report is based on criteria developed by third-party disclosure frameworks. The concept of materiality may vary between these organizations and, more important, is different than the meaning from a financial perspective applied to the Company's filings with the U.S. Securities and Exchange Commission (SEC). Accordingly, such information may not be considered material for financial reporting purposes. See our "Materiality Assessment" section for a description of how materiality was determined for the purposes of the information presented in this report. Our Annual Report on Form10-K for the year ended on December 31, 2022, as filed with the U.S. Securities and Exchange Commission, and other reports filed with the U.S. Securities and Exchange Commission, are available on our website.

FORWARD-LOOKING STATEMENTS

Except for the historical information contained herein, this Sustainability Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including our sustainability commitments, our 2023 sustainability initiatives, or ability to achieve optimal cash flow, our plans to continue to improve our performance in various functional areas, and our long-term growth strategy.

Such statements and information are based on numerous assumptions regarding present and future business strategies, the markets in which we operate, anticipated costs and the ability to achieve goals. Forward-looking information and statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results and performance to be materially different from those expressed or implied by such forward-looking information and statements, including but not limited to: our ability to realize sales from our backlog; our ability to obtain new contracts at attractive prices; the execution of purchase commitments by our customers, and our ability to successfully deliver on those purchase commitments; the size and timing of customer orders and shipments; changes to customer orders; product pricing and margins; fluctuations in customer demand; our ability to successfully navigate slowdowns in market activity or execute and capitalize upon growth opportunities; the success of product and technology development initiatives; our ability to successfully protect our technology and intellectual property and the costs associated with these efforts; potential consolidation among DynaEnergetics customers; fluctuations in foreign currencies; fluctuations in tariffs and quotas; the cost and availability of energy; the cyclicality of our businesses; competitive factors; the timely completion of contracts; the timing and size

of expenditures; the availability and price of metal and other raw material; the adequacy of local labor supplies at our facilities; our ability to attract and retain key personnel; current or future limits on manufacturing capacity at our various operations; government actions or other changes in laws and regulations; the availability and cost of funds; our ability to access our borrowing capacity under our credit facility; geopolitical and economic instability, including recessions, depressions, wars or other military actions, epidemics or pandemics; inflation; supply chain delays and disruptions; transportation disruptions; general economic conditions, both domestic and foreign, impacting our business and the business of our customers and the end-market users we serve; as well as the other risks detailed from time to time in our SEC reports, including the annual report on Form 10-K for the year ended December 31, 2022. We do not undertake any obligation to release public revisions to any forward-looking statement, including, without limitation, to reflect events or circumstances after the date of this report, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

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A Letter to Our Stakeholders

Dear Stakeholders,

DMC and its three manufacturing businesses participate in industries critical to the global economy. We are committed to operating these businesses safely, profitably and sustainably. Our sustainability programs seek to address five primary objectives:

1. Ensure the safety of our workplaces
2. Conserve energy and natural resources
3. Responsibly manage the consumption and disposal of raw materials and waste
4. Provide employees with career development and growth opportunities
5. Be a good corporate citizen

Safety is DMC's highest priority, and this commitment is reflected in the performance of our manufacturing facility in Liebenscheid, Germany. Operated by NobelClad, our composite metals business, this modern facility completed 2022 without a single lost-time or recordable incident. At this writing, Liebenscheid has operated nearly 1,500 days without a lost time incident, and more than 700 days without a recordable incident. This facility is the model for safe operations at DMC.

During 2022, NobelClad began pursuing opportunities in the growing liquefied natural gas industry. The initiatives included investments in more efficient industrial cutting equipment designed to increase manufacturing capacity while reducing energy and raw material usage. These investments are driving down annual cutting-related energy consumption by 58% versus NobelClad's legacy cutting machine.

DynaEnergetics, our energy products business, also focused on more sustainable operations in 2022, designing a range of streamlined well perforating systems and more ecologically sensitive packaging and shipping products. These initiatives are now bearing fruit, as our perforating guns use less metal and plastic, and our shaped charge packaging programs are expected to reduce Dyna's annualized cardboard consumption by 70%, or 237,000 pounds.

We acquired a majority interest in Arcadia, our building products business, in December 2021, and are continuing to integrate its operations and information systems. In 2022, our sustainability efforts centered on establishing data collection procedures at Arcadia's 14 service centers and manufacturing facilities. These efforts will help us identify opportunities to improve operating efficiencies and reduce Arcadia's environmental footprint. Additionally, 2022 was Arcadia's first full year as a member of the International Living Future Institute's "Declare" label program, which requires participating manufacturers to disclose product sustainability, performance and waste reduction efforts.

At DMC, we believe sustainability is essential to our long-term success, and we are committed to continuous progress on each of our sustainability priorities.

Sincerely,

Michael Kuta

President and CEO

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Asante Library in Surprise, AZ

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2022 Company Overview

DMC is a partner for growth, providing the support and resources our businesses need to reach their goals. DMC's network of innovative and sustainable manufacturing companies provides unique products and services to specialized sectors in the energy, industrial and building products industries.

NobelClad facility in Liebenscheid, Germany

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About Us

DMC Global Inc. (DMC) owns and operates three innovative, asset-light manufacturing businesses that provide unique, highly engineered products and differentiated solutions.

DMC's businesses have established leadership positions in their respective markets and consist of: Arcadia, a leading supplier of architectural building products; DynaEnergetics, which serves the global energy industry; and NobelClad, which addresses the global industrial infrastructure and transportation sectors. We leverage the unique strengths of our businesses to grow market share, expand profit margins, increase cash flow and enhance value for shareholders.

Our businesses are led by experienced, strategically focused management teams, which are supported with business resources and capital allocation expertise to advance their operating strategies and generate favorable returns. This approach helps our portfolio companies grow their core businesses, launch

new initiatives, upgrade technologies and systems, expand their markets and improve their competitive positions.

DMC Global Inc. is a publicly traded company that is incorporated in Delaware and listed on Nasdaq (NASDAQ: BOOM).

SALES BY END MARKET

Energy

Products

Architectural	46%	40%
Building
Products
	7%	14%
High-End Residential	Industrial
Building Products	Infrastructure
	For 12-month period ended December 31, 2022	DMC's headquarters in Broomfield, CO

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COMPANY SNAPSHOT

OUR COMPANY AT A GLANCE

1965

Company Founded

Broomfield, Colorado

Headquarters

1,700 Full & Part Time Employees

as of December 31, 2022

$654.1M

2022 Consolidated revenue

$12.2M

2022 Net Income attributable to DMC Global Inc. stockholders

$13.5M

2022 Adjusted Net Income attributable to DMC Global Inc. stockholders1, 2

$44.9M

2022 Cash flow provided by operations

$107.7M

Net Debt at December 31, 20222

$25.1M

Cash and cash equivalents at December 31, 2022

$74.2M

2022 Adjusted EBITDA attributable to DMC Global Inc.2

1. Adjusted net income is defined as net income attributable to DMC Global Inc. stockholders plus restructuring expenses and asset impairment charges and, when appropriate, nonrecurring items that management does not utilize in assessing DMC's operating performance.
2. Non-GAAPfinancial measure.

SCOPE OF OPERATIONS

OUR PURPOSE

At DMC, we believe a sustainable enterprise is one that cultivates growth and development opportunities for our workforce, delivers innovative technologies and products for our customers, delivers superior value to our stakeholders, and contributes economic and societal benefits to the communities where we operate. Our shared values of integrity, teamwork, courage and humility guide all our endeavors.

With an unwavering commitment to safety, we work to ensure the well-being of our employees, our customers and the communities in which we operate. We are dedicated to operating with a strong focus on environmental responsibility and to providing our customers with products that help them lessen their own environmental footprint.

DMC offers enriching opportunities and competitive compensation and benefits, fostering a supportive atmosphere in which our employees are empowered to excel and drive transformation through their contributions.

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OUR VALUES

Integrity

We stand by our word and own our decisions. We are fair in how we treat customers, peers, partners and the communities we work in. We treat our company like it's our own.

Teamwork

We believe in being a part of one team, one community. We count on each other to do our part. We stand by one another when things are tough, learning from our failures and celebrating together when we get the job done.

Courage

We are entrepreneurs, with the courage to act when we see something that needs doing. We believe in pursuing the right path forward, even if it's the most difficult one.

Humility

We believe that inspiration can come from anywhere and remain open to new ideas. We are proud of our work and how it helps our customers, but are never boastful.

OUR SHARED WAYS OF WORKING

1. We commit to clear priorities.
2. We never settle for "good enough".
3. We love a challenge.
4. We do our best when we do things together.
5. We're not afraid to fail.
6. We selflessly teach and willingly learn.
7. We believe good communication starts with good listening.
8. We are transparent about success and failure.
9. We celebrate successes and acknowledge efforts.
10. We think globally but act locally.

EMPLOYEE VALUE PROPOSITION

We provide a supportive environment where people are challenged to excel and empowered to transform business through their work. At DMC we offer employees:

• Nurturing environment: We strive to provide a nurturing environment where individuals feel supported and encouraged to grow and develop.
• Challenges: We present individuals with challenges that help them to develop their skills and knowledge. We believe that people learn best when they are challenged. We also believe that challenges help people to grow and become better versions of themselves.
• Authority: We give individuals the authority to enact transformative change within the realm of business. We believe that people are more likely to be successful when they have the freedom to take risks and to make decisions. We also believe that people are more likely to be engaged and motivated when they feel like they have a stake in the success of the Company.

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