INFICON : Sustainability Report 2023

ANNUAL REPORT

2023

INFICON Sustainability Report 2023 Report on non-financial matters 2023

Contents
Sustainability - a core pillar of
INFICON's strategy	40
Identification of material topics	40
Stakeholder Management and
key stakeholder concerns	41
INFICON's Business Model	45
Economic topics	46
Technology leadership	46
Market leadership	46
Customer relations	48
Product quality and compliance	49
Products with economic, social and
environmental impacts	50
Governance topics	52
Good governance	52
Responsible supply chain management	53
Environmental topics	55
Environmental management system	55
Energy and carbon emissions	56
Efficient materials sourcing and use	59
Social topics	60
INFICON - an attractive employer	60
Diversity, equity, and inclusion	62
Occupational health and safety	63
Ongoing education and training	65
Community relations	66
Outlook and Goals	67
Reference table for Art. 964b
Swiss Code of Obligation	68
GRI Content Index	69

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INFICON Sustainability Report 2023 Report on non-financial matters 2023

SUSTAINABILITY - A CORE PILLAR OF INFICON'S STRATEGY

This chapter of the Annual Report outlines INFICON's perception and understanding of sustainability and the respective actions taken. It explains the customer- focused, technological, and sustainable approach of INFICON's value proposition and describes the Com- pany's relationships with its stakeholder groups including customers, employees, investors, the hosting com- munities, its business partners, and suppliers. This chapter also describes general environmental, social as well as governance and leadership related aspects of INFICON's business. This chapter serves as report on non-financial matters according to the Swiss Code

of Obligations. It covers the business model as well as environmental matters, social issues, employee-related issues, respect for human rights and combatting corruption issues. See also reference table for Art. 964b Swiss Code of Obligations on page 68.

As a global leader in instruments for gas analysis, measurement and control, and smart manufacturing solu- tions. INFICON's business model is deeply rooted in its commitment to do business sustainably in economic, environmental and social terms as well as regarding governance and leadership. In our business decisions and conduct, we consider economic, environmental and social aspects at both strategic and operational levels. This approach lies at the heart of the Group's long-term strategic orientation, its value creation, market leader- ship, and thus long-term success and profitable growth. Our emphasis on sustainability provides guidelines for INFICON's customer-oriented innovation management, its global purchasing and production processes, its risk management as well as the conduct of its customer relations. Sustainability is also a primary goal of all our innovation work; INFICON products help our customers to minimize the impact of their activities on the economy, nature, and people.

INFICON aims at sparingly and sustainably utilizing resources and compensating appropriately for their use, allowing prosperity today and for future generations. This compensation includes reasonable dividends for shareholders, fair payments for our workers and business partners, as well as the disbursement of taxes in the various jurisdictions we operate in. Sustainability is also an important factor that helps us attract, recruit, and retain the best talents. We are aware that employees and customers want to understand the purpose of a company. When they comprehend a corporation's approach to ESG, and know and share its goals, employees see their work as a meaningful contribution to the company, the society, and the planet. This increases motivation, loyalty, and performance. Suppliers and cus- tomers, too, value their relationship with a company more when they can relate to the purpose of a company.

IDENTIFICATION OF MATERIAL TOPICS

For the 2023 sustainability report and report on non- financial matters, we have reviewed all the gathered information and available data and consecutively; we modified, updated, and further expanded the scope of this report.

At the start of this process, we have updated the materiality analysis in terms of a double materiality approach. We consider topics as material that are important to INFICON with regard to their business relevance, and/ or have a significant economic, environmental, or social impact.

The materiality matrix on next page shows and prioritis- es the identified topics. The sustainability and non-finan- cial report is structured according to these material topics into the categories Economy/Products, Gover- nance, Environment, and Social.

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INFICON Sustainability Report 2023

Materiality matrix

high

Responsible supply chain management

Impact on

Environment,

Society and

Economy

Efficient materials sourcing and use

Community relations

medium

Product impact

Technology leadership

Product quality & compliance

Occupational	Customer relations
health & safety
Diversity, equity,	Good governance
and inclusion
	Attractive employer
	Training and education
Energy and carbon	Market leadership
emissions
Environmental
management system

Governance

Social

Environment

Economy/ Products

medium

Business Relevance

high

STAKEHOLDER MANAGEMENT AND KEY STAKEHOLDER CONCERNS

Developing and maintaining good relationships with all stakeholders is key for long-term business success. INFICON regularly engages with its stakeholders in a broad and systematic variety of ways to understand their needs and to gain insights into changing market requirements, trends, and developments. Above all, day-to-day communications are the most important form of interaction. Daily contact with customers, suppliers, and business partners, as well as personal discussions among employees indicate what topics are relevant to the individual stakeholder groups.

Each organization identifies and prioritizes its stakeholders and their interests, discussion topics, and values by means of formal management reviews, SWOT anal- yses, or dedicated stakeholder analyses as part of our

ISO certified management system. Overall, INFICON defines stakeholders as entities that engage in economic transactions with the Company, or as entities affected by its actions. The Company's key stakeholders are described below.

INFICON's customers faced a demanding global business environment in 2023. In addition to the ongoing international trade, tax and industry policy dis- putes, the Russian aggression war on Ukraine, the war between Israel and Palestine caused sourcing bottlenecks for certain components and materials, and clogged or disrupted international trade routes.

INFICON interacts in many different formats with its global customer base to understand their high expec- tations. The tables below summarizes the interaction formats and topics:

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INFICON Sustainability Report 2023

Examples of engagement	Key needs and concerns
formats
Daily interaction	Reliable customer service
Regular personal contact	Quality/good value products
Video conferences	Meeting the technical specs
	and requirements
Workshops/visits	Fast response times
Webinars, technical	Reliable on-time delivery
trainings
Conferences,	Health and safety impacts of
presentations, speaker	products
opportunities
Training and application	Explaining features and
videos	competitive advantages
Social media, newsletters,	Providing general informa-
case study articles, emails	tion, generating visibility
	online
Trade shows (virtual and	Show and explain innovation
physical)	and performance
Industry associations	Assess overall industry and
	technology trends
Completion of Responsible
Business Alliance surveys
at customer requests

Understanding our customers' most pressing needs is a prerequisite for our business. INFICON experiences great customer loyalty and a rising demand for its prod- ucts, technologies, and services. Our key account managers and technical staff frequently meet with custom- ers. In fact, close to 10% of INFICON's staff are application engineers. They work daily with - and even more importantly so at - our customers, worldwide. This customer intimacy enables INFICON to team-up with its clients to research and develop the next generation of customer-oriented solutions.

Over the last couple of years, new electronic formats of customer engagement became more frequent. INFICON addresses the broader customer base at industry-specific tradeshows and conferences, on industry association panels, through webinars and technical training videos, as well as newsletter and e-mails. INFICON has also expanded its presence on various social media platforms. INFICON's new state-of-the-art multimedia studios allows us to create compelling videos to train our customers and to educate the public at large about the advantages of INFICON's technologically leading offering.

In our robust exhibition schedule in North America, Eu- rope and Asia, we focus especially on delivering talks and presentations on topics relevant for today's market challenges. We participated also in a series of new industry trade shows e.g. focusing on the battery and car industry as well as food packaging.

At the same time, INFICON continues to advocate the electronic interaction formats in many occurrences as ecologic alternative for frequent travels. INFICON experts engage with their counterparts by frequent video conferences, virtual reality assisted tools, and social media. We also like to accept opportunities to present our array of products and services directly at customers and research institutions. During the reporting year 2023, INFICON was e.g. invited to present its offering at CERN, the European Organization for Nuclear Re- search, in Geneva/Switzerland, or at Global Foundries, Dresden/Germany.

INFICON's employees are a key asset to the Group. We want to be known as a reliable, fair, and caring employer keeping employees safe, highlighting job security at INFICON, and attracting and retaining talents as best as possible. INFICON intensified internal communication in the past years via different channels ranging from on-site staff gatherings, hybrid to virtual town-hall meet- ings, from sharing information on the intranet to more frequent newsletters, from job related training sessions to the INFICON identity workshops, and special topic meetings. Depending on the locations, e.g. town-hall meetings take mostly place monthly, in certain locations quarterly. As INFICON is expanding its global operations to accommodate future growth, hiring and especially on-boarding new staff and talents locally requires good communication skills and a high level of attention.

Examples of engagement	Key needs and concerns
formats
Daily interaction	Health and safety
Regular staff meetings	Job security
Regular town-hall	Flexible communications and
meetings	information sharing
Intranet, newsletters	Business situation
Trainings	Onboarding, daily Workload
Employee representatives	Compensation, training and
	education

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INFICON Sustainability Report 2023

INFICON's suppliers are key to our flexible manufacturing model. Shortages had occurred in the wake of the COVID-19 pandemic, the different national strategies to cope with it, and more recently because of the international trade, tax, and industrial policy disputes, the wars in the Ukraine and in the Middle East. The glob­ ally rapidly rising demand for semiconductor products, electronics and other key components created shortages on the supply markets. Continuous sourcing of certain components became very challenging, especially in Asia and China in particular. Well-established, mutually beneficial, reliable and resilient supplier relationships are vital, yet not sufficient. INFICON had to engage various brokers to safeguard its supply of certain components and materials.

INFICON's purchasing departments and quality specialists closely interacted on a day-to-day basis with key suppliers, focusing on securing the needed quantities and the correct quality of components at reasonable prices. The quality of the components we receive from our suppliers is a critical aspect of our overall INFICON product quality. To increase the reliability and consistency of the components we use in our products, we have instituted Quality Business Reviews (QBRs). These important QBRs are conducted every quarter to assure that quality is maintained. We conduct onsite audits bi-annually or more frequently, if required. We also offer specific trainings for supply partners at INFICON sites. We continue to emphasize on site or virtual supplier visits and audits, in order to keep the quality of the goods delivered to INFICON up as best as possible. Overall, INFICON has increased its inspections of incoming components in recent years, focuses on dual sourcing where possible, and continues to monitor the quality of goods sourced as the Group is globally ramping up its activities.

Examples of engagement	Key needs and concerns
formats
Regular, daily interaction	Prices
Supplier visits	Required volumes
Supplier audits	Specifications
Quality and pricing	Reliable on-time delivery
meetings
Forecasting systems	Volumes, capacity, planning

INFICON's local communities know the Company as a responsible corporate citizen and frequently contact us regarding topics such as sponsorship and support of local events or even political initiatives. Local communities and the public at large ask for more transparency in terms of environmental, social and governance data. Regulatory developments also rise the requirements regarding non-financialdisclosures.

Examples of engagement	Key needs and concerns
formats
Engagement projects	Sponsorship
Funding requests	Support with personnel
Open-door events	Other contributions and
	support

The international financial community is an important stakeholder group for a publicly listed Company. INFICON engages in a continuous dialogue with its investors and the financial community by means of its Annual Report, Interim Reports, its quarterly earnings releases, presentations and online conferences, its Annual General Meeting of Shareholders, Technology Days, as well as national and international roadshows, the attendance at financial conferences, and receiving visitors at its headquarters.

The investors and analysts are keen to understand how INFICON is generating value today and in the future. They want to learn about the product pipeline that continues to define the market benchmarks and thus secures the Company's long-term successful positioning. The financial community is specifically interested in visiting the Company on-site. Management has more frequently received analysts and investors e.g. at the Balzers (LIE) worksite - close to its headquarters - than in previous years. Investors and analysts want to understand INFICON's core technological competence in vacuum technology. Information on this topic is publicly available on the internet, highlighted in INFICON's reports and presentations, and addressed at the Technology Days that take place from time to time. A next Technology Day is planned for late 2024. INFICON management interacts on average with about 200 investors and analysts per year via various channels.

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INFICON Sustainability Report 2023

Examples of engagement	Key needs and concerns
formats
Financial reports and	Growth
press releases
Annual report and	Profitability
Sustainability report
Annual general meeting	Long-term success
Analyst conferences/	Product pipeline,
summits and calls	development projects
Technology days (every	End-market developments
four to five years)
Roadshows	Sustainability
Reversed-Roadshows

International industry associations provide important interaction and discussion platforms for INFICON on a variety of topics including industry-specificcom­ pliance and conformity issues, products and process certifications and tax contributions.

INFICON is member of the following associations via its subsidiaries:

INFICON AG/Liechtenstein:

• American Vacuum Society (AVS)
• SAQ (Swiss Association for Quality)
• SEMI (Microelectronics industry association)
• Swiss-Americanchamber of commerce
• Swiss Association for Standardization (SNV)
• Swissmem
• Swissvacuum
• Vacuum Society

INFICON GmbH/Germany:

• BG ETEM
• Deutscher Kaffeeverband e.V.
• Deutsche Vakuum-Gesellschaft e.V.
• DIL - Deutsches Institut fur Lebensmitteltechnik e.V.
• DIN - Deutsches Institut fur Normung e.V.
• DLG - Deutsche Landwirtschafts-Gesellschaft e.V.
• IHK - Industrie- und Handelskammer zu Koln
• kölnmetall - Arbeitgeberverband
• SPECTARIS e.V. - Deutscher Industrieverband
• ZLV - Zentrum fur Lebensmittel- und Verpackungstechnologie e.V.

INFICON Inc. /Syracuse (USA):

• AAFP (Arkansas Association, Food Protection)
• Air Conditioning, Heating & Refrigeration Institute (AHRI)
• American Public Gas Association
• Centerstate CEO
• Heating, Air Conditioning and Refrigeration International Distributors (HARDI)
• IAFP (International Association, Food Protection)
• Interior Climate Control Committee (ICCC)
• MACNY (Manufacturers Association of Central New York)
• MEMA - Vehicle Suppliers Association
• Mobile Air Conditioning Society (MACS)
• Manufacturing Leadership Council
• National Association of Manufacturers (NAM)
• National Coffee Association
• National Defense Industrial Association
• Packaging Machinery Manufacturers Institute
• Poultry Federation
• SWANA (Solid Waste Association of North America)
• Society of Automotive Engineers (SAE)
• Southern Gas Association
• Wisconsin Cheese Makers Association

Universities and Research Institutes are significant technology partners. INFICON is currently part of several research projects with leading universities, research institutes, and science partnerships located in the US and in Europe. To name a few, we are proud to be part of projects e.g. at CERN, the European Nuclear Research Center, at ITER, the most ambitious fusion energy projects in the world today, at ETH, the Swiss Federal Institute of Technology, or at NASA, the US Space Agency.

The cooperation with such bodies is an important source of novel expertise in new fields of research. The projects range from basic research to applied developments and industrial manufacturing, and cover areas from physics, chemistry into medical applications. INFICON also seeks to find new and refine core technologies for its vacuum technology components through the cooperation with those research institutes. The complexity of vacuum technology and its rapid technical and scientific development requires a permanent and close look at developments in the core and in neighboring and sometimes even rather distant disciplines such as

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INFICON Sustainability Report 2023

optics and acoustics. We also co-develop new materials including ceramics, glasses, metal alloys, and innovative novel coatings that promise new properties beneficial for the performance and longevity of our custom- ers' or our products, that open or require new vacuum technology procedures and applications. INFICON also cooperates with academic bodies to bring data analysis projects forward, as rapidly analyzed data are

1. key to next-generation innovations. On a regular basis, we also accept speaker opportunities to interact with the academic world and engage with the next generation of young engineers. We also mentor young scientist e.g. during their bachelor or master theses or in other scientific projects. Our close cooperation with universities and research institutes promotes INFICON's attractiveness as employer. Young experts get to know our products, our research and develop- ment capabilities, our technological leadership position. The close cooperation with these academic and applied scientific bodies helps INFICON to attract young talents.

INFICON'S BUSINESS MODEL

INFICON's strategy and business model anchor on our core competencies. We are (1) a technology company focusing on vacuum technology. We offer world-leading sensors, components and instruments as well as control and smart manufacturing software for a growing range of today's and tomorrow's key industries and applications. We want to be recognized as the (2) innovation partner of choice capable of delivering the smartest solutions for our customers' upcoming needs. And, last but not least, as a Company, we (3) develop, produce and sell our products and services using a flexible manufacturing model built around our own state- of-the art manufacturing, R&D, and service units on the one side and our excellent supplier management and our customer centricity on the other.

At INFICON, we synergistically leverage our scientific expertise in the specific, yet broad and expanding field of vacuum technology into a growing range of applications and industries. Our R&D and manufacturing efforts are group-wide coordinated and managed in three competence centers. In Syracuse (USA) we focus on sensors and software. In Cologne (DE), the focal topic

is leak detection while the specialists for pressure management are located in Balzers (LIE). The Chapter on Market Leadership sheds some more light on our R&D, Sales & Service, and Innovation teams and their work.

With our combined know-how we serve four defined target markets: The biggest one being the global Semiconductor and Vacuum Coating market, followed by the General Vacuum Application market serving both industrial as well as academic customers. Our products and services are also key in the Refrigeration, Air Conditioning, and Automotive industries. Last but not least we serve the Security and Energy market. The contribution of the various target markets to INFICON's overall Group sales are discussed in more detail in the Letter to Shareholders and the Financial Report of this Annual Report.

While the backbone of our products and services in all these global markets is INFICON's mastery of vacuum technology, they are quite diverse. Common to all of them is the fact that these technology driven markets typically grow faster in the longer term than the worldwide GDP benefitting from global megatrends and growth drivers as shown on page 6. Our target markets follow at times different economic trends and business cycles in the shorter term. INFICON's broad market position makes the Company thus less prone to business cycles overall.

The complexity of the markets we serve also shows in INFICON's customer orientation. Cooperation, collabo- ration, co-creation are key in continuously bringing our offering to the next level of excellence. Many INFICON colleagues daily work with and even at our clients. At INFICON, we thoroughly understand our customers' most pressing needs. This approach has allowed us to secure top 1 or 2 position in the markets we serve. We are proud to be acknowledged as the trusted "must-go-to" innovation and solution partner to our customers.

INFICON's innovation, manufacturing, and production competence rests on the three above-mentioned, state- of-the-art equipped Centers of Competence, and seven smaller, specialized locations. Understanding the vital underlying aspects of vacuum technology, we develop and design solutions for the next generations of our

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INFICON Sustainability Report 2023

customers' technology applications. Yet, we do not manufacture all components ourselves. In fact, INFICON's activity relies on a flexible manufacturing model and an excellently managed, international sourcing.

INFICON's has over 1,000 suppliers globally. The largest 20 make up for about 40% of INFICON's sourcing. Looking at the regional split of our suppliers, around 50% of INFICON's direct suppliers come from Europe and they cover with around 63% the majority of the sourcing volume. North American suppliers represent around 36% and the remainder is from Asia. The main sourcing categories are electronic, mechanical, or metalworking items, pumps and printed circuit boards. For more details please refer to chapter "Responsible supply chain management" on page 53.

The Covid-19 pandemic, the international trade, tax, and tariff disputes, and the ramifications of the war in the Ukraine and the Mideast conflict into the stable energy supply and international logistics have highlighted the major risks associated with INFICON's flexible production model. Securing the right amount of the right products in the correct quality has become a challenge. While INFICON has mostly been able to safeguard ongoing supplies, the seamless deliveries came at a price. Like many other companies, we had to engage independent supply brokers to search and secure urgently needed components for INFICON on the international sourcing markets.

We serve our markets directly with products bearing brands of the INFICON Group, and/or indirectly through private label products we produce for third parties. This approach guarantees on all markets and in all industries the most suitable customer proximity and the best and most responsive customer service. INFICON has sales and service centers all over the world, as shown on page 15 of this report.

Our clear technological focus on the growing realm of vacuum technology applications, our customer-oriented approach to innovation and development, INFICON's flexible manufacturing and sourcing model, as well as our direct and indirect sales efforts help us avoid and mitigate the effects of many risks associated with international business. This gives INFICON the leeway to devote full attention to unforeseen risks that inevitably occur in today's complex world.

We believe that INFICON's successful strategy and proven business model is a long-term and sustainable basis for mutually beneficial stakeholder relations as discussed further in this report.

ECONOMIC TOPICS

Technology leadership

Understanding and anticipating our customers' most pressing, emerging, and future needs, spurs and drives innovation. At INFICON, we understand industrial innovation as a multi-layered process ranging from continuous enhancements and optimization efforts for existing product categories, to screening, applying and leveraging the latest scientific discoveries into new use cases, products, and services. Innovation power and technology leadership as a result are firm foundations of our business model.

INFICON is an expert in developing market-leading instruments for gas analysis, measurement, and control. In many industries, our products are recognized as technology benchmarks. The high innovation pace allows INFICON to hold and expand its number 1 to 2 position in all target markets. During the reporting year, INFICON has launched a series of new and enhanced products. A summary of these innovations including photos and descriptions is shown on the pages 8-9 in this report. On page 5, we discuss our technological leadership positions in greater detail, highlighting how our expertise defines our offering for the various targets we serve.

Market leadership

INFICON's business model has proven to be strong for over 20 years. Our products and services allow us to generate solid cash flows to solidify and grow the busi- ness. INFICON is active and present in all world areas. We operate in very competitive target markets, where we hold leading positions, generally as one of the top- two global solution providers. See page 15 for an overview map showing INFICON's global presence.

INFICON covers the global target markets with three brands. We also manufacture and supply private label products for large industrial players. Please refer to pages 6-7 for an overview on INFICON's target markets. The goal is clear: INFICON wants to offer competent

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INFICON Sustainability Report 2023

services, consultancy and training covering the full customer -buying circle. INFICON's global sales and service organization counts around 400 people, and includes functions in sales and marketing, application engineer- ing, customer service, order management, logistics, as well as finance and administrative staff. Customers around the globe benefit locally and efficiently from

a comprehensive range of installation, commissioning, calibrating, maintenance, repair, and device rental ser- vices. Important to note, well over 150 application engineers work most of the time directly at our key custom- ers. They have access to their production facilities and really understand the customers' challenges and most pressing needs. This cooperation is an essential basis of INFICON's customer-oriented value creation.

To meet these expectations, INFICON has embarked on a comprehensive investment strategy in 2021. This

3-year program saw its completion in 2023. The initiative has added some 50% additional capacity Group-wide. INFICON has already identified the next opportunities for organic growth and plans to complement these expansion projects also by targeted technology acquisitions.

Global competition keeps the innovation pace high. INFICON strives to provide customers with the best available technology for their complex and rapidly evolving vacuum technology production processes and tools. INFICON devices guarantee maximum accuracy of measurement results. Our products and services help customers gain the best control and predictability of their processes and maximize productivity and yield while minimizing production time, material usage, scrap rate and labor and maximizing the product life cycle. Employing INFICON components and instruments leads to the overall lowest cost of ownership and best sustainability in the longer term. Group-wide, some 250 people are primarily devoting their work for our research and development work.

INFICON operates as a truly customer-oriented Compa- ny. We are keen on turning our customers' emerging needs into our own innovation targets. Through our close cooperation with Original Equipment Manufacturers (OEMs) and end-product manufacturers, we gain important information about both their needs as well as the needs of their customers, which in many instances are also our customers for end-user products.

On top of that, customers can rely on the INFICON's trained assistance from distributors and agents. We analyze customer feedback carefully. We collect spontaneously expressed responses. In addition, we spo­ radically distribute customer surveys in the various re- gions, for specific markets, or certain product categories to unveil otherwise unexpressed customer wishes and opinions. We also systematically monitor external and internal data such as customer complaints, product rejections, as well as insights from our own development efforts or quality assurance processes. On these grounds, we define measures and derive actions for our own processes to close the customer feedback loop full circle.

The proximity to our customers is an important source of innovation. Our sales and service staff learn about our customers' technical challenges help them develop new applications, and spur our own in-house innovation and developments. Customer proximity includes also the strategy to be geographically as close as possible to our customers. In 2023, INFICON moved physically again closer to customers in Asia:

Celebration ceremony for new production line in Shanghai Nov 2023

Vacuum gauge production line in Shanghai: On November 3rd, INFICON celebrated the opening of our new vacuum gauge production line at the factory in Shanghai, a strong sign of our commitment to our customers in the Chinese market. Together with inter­ national and local management, employees and part- ners, our CEO Oliver Wyrsch proudly inaugurated the new site.

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