Komax : Report on non-financial matters (ESG Report)

ESG Report 2023

CONTENT

Sustainable, social, and responsible 61

Scope of the ESG Report 63

The Komax Group at a glance 64

Corporate purpose of the Komax Group 65

Embedding ESG in the Komax Group 67

Materiality analysis 68

ESG strategy 69

ESG targets 2024-2028 70

Sustainable, profitable growth 71

Interactions between the Komax Group and its environment 72

Lean management and operational excellence 73

Digital transformation 75

Climate Protection - caring for the environment 76

Greenhouse gas emissions and energy efficiency 76

Product life cycle management 80

Responsibility - taking responsibility for people 85

Overview and social key figures 85

Workplace safety and well-being 87

Customer relations 93

Fairness - acting fairly and ethically 95

Business ethics and compliance 95

Supply chain risk management 97

Additional information 100

Statement from the Board of Directors and SCO reference table 101

SUSTAINABLE, SOCIAL, AND RESPONSIBLE

Environmentally sustainable business practices along with socially oriented and responsible company management are core elements of the Komax Group's corporate strategy. They are incorporated into both the Komax Group's long-term targets and its operating activities. The Komax Group is determined to develop its compe-tencies in questions of sustainability on an ongoing basis. With the new Strategy 2028, sustainability (ESG) will form an integral part, with specific targets that are set out in this ESG Report.

DEAR READER

Countless events in the recent past have shown once again how important it is to adopt a respon-sible approach in dealing with each other and the resources available to us. The coronavirus pan- demic and wars in both Europe and the Middle East are just a few examples of this. Global warming is real, and in some cases has had massive repercussions for human life and the business activity of companies. The Komax Group is one such company. It takes responsibility and plays its part in preserving the quality of life of coming generations. That is why it seeks to create value on a long-term, sustainable basis.

We are a fair and reliable partner for all stakeholders at all times. Where our workforce is concerned, we offer an appreciative working environment, and our products are long-lasting, energy-efficient, and of a high quality. We attach considerable value to environment-friendly pro-duction and the prudent use of resources. This is because we want to help our customers shrink their environmental footprint. But this is nothing new: The Komax Group has been an advocate of responsible business practices in keeping with ESG for decades.

We took a major step forward in this respect in 2023. To provide the framework for the Group- wide, strategic implementation of ESG, sustainability was incorporated into the Articles of Asso- ciation at the 2023 Annual General Meeting in line with a proposal from the Board of Directors. In addition, in April 2023 the Board of Directors appointed a Sustainability and Innovation Committee, which supports the Board of Directors and the Executive Committee in sustainable corporate development, strengthens our innovative capacity, and oversees sustainability reporting.

ESG is an integral component of the Komax Group's new Strategy 2028. To this end, the Komax Group carried out an in-depth materiality analysis in 2022 at the instruction of the Board of Directors so as to identify central themes. Taking this analysis as a basis, we developed 13 long-term targets in 2023 that will bring us closer - step by step - to our vision of a fair, responsible, and climate- neutral organization. In step with this, we have broken our ESG targets down into three core elements: Fairness, Responsibility, and Climate Protection. Our focus will be on the areas where we can have the biggest impact. The operational implementation of ESG as an overarching initiative in all business areas is already being executed under the stewardship of CEO Matijas Meyer. An important first step here was the improvement of data quality in 2023. Following the Komax Group's publication of comprehensive ESG data for the first time for 2022 with its ESG Short Report, we were able to improve data quality further in the reporting year. This now allows us to provide you with additional information.

This ESG Report gives you an insight into our strategy, our targets, and how we intend to achieve them. It was drawn up in accordance with the GRI Standards and broken down by the themes that are important to us. The sections that are relevant for the vote at the Annual General Meeting were approved by the Board of Directors in keeping with the requirements of Swiss legis- lation (the Swiss Code of Obligations) and will be submitted to the Annual General Meeting to be held on 17 April 2024 for approval. Details are listed on page 101 of this report. We look forward to continuing to present you in the future with detailed annual updates on the progress we are making in the form of a comprehensive ESG Report.

Yours sincerely,

Dr. Beat Kälin	Dr. Andreas Häberli
Chairman of the Board of Directors	Chairman of the Sustainability and
Innovation Committee
Komax Group ESG Report 2023

SCOPE OF THE ESG REPORT

Komax Holding AG publishes comprehensive financial results twice a year, in English and German: for the first half in August and for the full year in March, in the form of media releases and annual/ half-year reports in PDF format. The ESG Report is an integral part of annual reporting and is published together with the Annual Report. This is the first ESG Report published in accordance with the GRI guidelines. The corresponding GRI index is available on the website of the Komax Group (www.komaxgroup.com/en/annualreport2023/gri-index). In addition, an ESG Short Report was pu-blished to coincide with Investors' Day on 28 September 2023.

The present report encompasses the period from 1 January to 31 December 2023, and was published on 12 March 2024. The publication dates can be found in the financial calendar on the Komax Group website (www.komaxgroup.com/en/invest-in-komax/financial-calendar). The scope of consolidation of ESG reporting is identical to that of our financial reporting. Data and qualitative statements relate to the entire Komax Group as per the list of equity holdings on pages 171-172 of the Financial Report, other than where explicitly stated otherwise. The Alcava Group was acquired with effect from 1 October 2023 (› page 168, Financial Report). This acquisition was not taken into consideration, other than where indicated differently. Certain data elements such as those relating to energy and material consumption, fuels, waste, and recycling were obtained for a nine-month period and extrapolated in a linear way to cover the twelve-month period. In order to facilitate an expedient comparison with the previous year, data for the entire 2022 calendar year was also taken into account for the Schleuniger Group. This was done even though the consolidation of Schleuniger did not take place until the beginning of September 2022.

The ESG Report was drawn up in compliance with Art. 964a et seq. of the Swiss Code of Obligations (SCO), as well as in accordance with the GRI Standards and the GHG Protocol. The Komax Group takes its cue from globally recognized standards. Based on a materiality analysis, the Komax Group has defined the relevant targets for its sustainable development. Using this as a basis, it wants to contribute to the realization of the global targets of the Sustainable Development Goals (SDGs) of the United Nations. Of the 17 SDGs, it has defined the following seven goals as those to which it can make the greatest possible contribution:

In the ESG report, the logo of each of the seven targets is placed next to a section that explains how one aspect of the Komax Group is contributing to the corresponding SDG.

Contact partner for ESG matters:

Roger Müller

Vice President Investor Relations / Corporate Communications Phone [phone]

The Komax Group at a glance

The Komax Group has some 3500 employees, and is a pioneer as well as market and technology leader in automated wire processing solutions. It offers serial production machines, customer-spe- cific systems, quality assurance modules, test systems, networking solutions, and services for the processing of all sorts of wires, including for the production of wire harnesses in vehicles. Head- quartered in Dierikon, Switzerland, the Komax Group is active in three market segments - Auto- motive, Aerospace & Railway, and Industrial & Infrastructure. The Automotive market segment is the key market, accounting for 75% of revenues. The headquarters of the Komax Group can be found at Industriestrasse 6, 6036 Dierikon, Switzerland. Worldwide, the Komax Group has 30 engi- neering and production sites, and offers sales and service support in more than 60 countries.

The Komax Group aims to further expand its market position and set the pace on the trends that are important today, such as automation, e-mobility, and autonomous driving. To this end it has defined ambitious growth and profitability targets. Through its business strategy, which is geared toward long-term success, it aims to create sustainable value (› page 22 onwards).

In its market environment, the Komax Group is impacted by a number of megatrends. Key among these is the trend toward greater automation on the part of customers of the Komax Group. In addition, the rising number of vehicles manufactured is an important growth driver. Further details on these megatrends and the markets: › pages 18-21 and 38-45 of the Annual Report 2023.

EUROPE

Revenues1: CHF 333.2 million (44.3%)

Employees: 2 384

Engineering and production sites: 20

Headquarters in

Dierikon, Switzerland

Engineering and production sites: 5

ASIA/PACIFIC

Revenues: CHF 124.7 million (16.6%)

Employees: 494

Final assembly of the Alpha machine series at the headquarters in Dierikon, Switzerland.

Corporate purpose of the Komax Group

For decades now, the Komax Group has been known for innovative products and its leading market position. At the same time, it also wants to contribute to the sustainable development of society. The corporate purpose of the Komax Group can be summarized in just a few words:

As a driver of innovation and market leader in automated wire processing, we develop and produce intelligent, reliable, and optimally cost-effective wiring solutions for smart mobility and smart city applications. We work closely with our customers to make life simpler, more convenient, and safer.

The Komax Group understands smart mobility to mean the increasingly multifaceted nature of the mobility offering for end customers. Be it bikes, cars, or public transport - many of these forms of mobility are increasingly relying on electrical drive systems and a higher number of electronic com- ponents. Wherever electricity is used, wires are required, and wherever wires are installed, areas of application arise for the Komax Group. Smart city solutions support the optimum usage of this mobility spectrum, e.g., through traffic guidance systems or intelligent electricity usage, distribution, and storage systems. All these solutions need cables, be it for transmitting power or transferring data. The Komax Group helps with the production of these on the basis of high-quality, automated, resource-conserving processes, thereby also contributing to these megatrends.

Five core values

All business processes in the Komax Group are aligned with five core values. These core values are fundamental elements of the identity of the Komax Group, and are enshrined in its Code of Conduct. They form the basis for environmentally sustainable business development as well as socially oriented and responsible corporate governance.

THE FIVE CORE VALUES OF THE KOMAX GROUP

INNOVATION

As a pioneering and visionary company, we ensure that our business activity has a long-term focus. We are always open to new ideas and regularly re-examine our approach. This includes looking beyond our immediate concerns. We are willing to take risks - on the basis of knowledge and understanding - in order to reinforce our leadership in terms of innovation. Following new paths can lead to mistakes. We realize and tolerate this because it gives us an opportunity to become even better. We are increasing our lead by continuing to press ahead with innovations proactively, quickly, and determinedly while remaining committed to our usual high quality standards.

CUSTOMER FOCUS

The varying needs of our customers are at the center of our activities. We listen to them carefully and ask the right questions. Understanding their requirements enables us to keep on improving. We strive to ensure that our solutions offer our customers added value, so that they can increase their efficiency and productivity and thus gain a competitive advantage. We are close to our customers, communicate actively, and foster friendly, long-term relationships and partnerships based on respect and esteem.

SUCCESS

We pursue ambitious targets and make an effort to achieve them every day. As a market and technology leader we make high demands of ourselves and strive to find the best solution for our customers. Our long history of success encourages us to continue the success story and create sustainable value. This benefits our custo-mers, employees, and investors. We want all these stakeholders to share equally in our success. We nurture competent, committed employees who enable us to retain loyal, satisfied customers.

QUALITY

Our day-to-day work is driven by quality and a willingness to examine what we do critically. We provide our cus-tomers with solutions that fully meet our quality requirements and supply what we have agreed. This commitment lies at the heart of our long-term, trusting customer relationships. Our efforts to keep on getting better include always delivering the agreed quality and actively asking customers how we can improve further. It is clear to us that this creates trust, which is of inestimable value.

RESPONSIBILITY

We take our responsibility toward our customers, employees, and investors seriously and act as a reliable, trustworthy partner. Our integrity and ability to keep to our agreements and meet our deadlines make us stand out from the crowd. We keep our word and ensure that our partners and colleagues do so too. A strong sense of shared responsibility is important to us and we are careful to foster it. We take responsibility for our actions, make decisions, and carry them out. If we pass our responsibility on to others, we do so deliberately and ensure that they assume it in turn.

Embedding ESG in the Komax Group

ESG was defined as one of the key strategic targets of the Komax Group by the Board of Directors back in 2022. Key ESG metrics have been compiled and documented since 2021. The Komax Group firmly anchored ESG in the company when developing its Strategy 2028. Part of this involved the comprehensive revision of the Articles of Association at the Annual General Meeting on 12 April 2023, including the introduction of Article 2a, "Sustainability", which underscores the principle of sustainability already being applied by the Komax Group. The new Articles of Association also take account of current best practice in corporate governance.

Following the 2023 Annual General Meeting, the Board of Directors also set up a Sustainability and Innovation Committee. This committee informs and advises the Board of Directors regularly on new developments in the different areas of ESG and monitors sustainability reporting (› pages 111/112, Corporate Governance).

The CEO has overall responsibility for the operational execution of the ESG strategy. He drives this forward together with the Vice President Investor Relations / Corporate Communications, who steers and supervises its implementation into the business processes centrally. Another development in the reporting year was the initiation of an ESG Committee with senior managers from various areas such as Group Legal and Compliance, Global Human Resources, Global Operations & Sup-ply Chain, etc., in order to provide broad-based support with implementation at an operating level and ensure that the various ESG initiatives progress according to plan.

ESG: ORGANIZATIONAL STRUCTURE

BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

ESG COMMITTEE

Other members of the Executive Committee

In order to ensure sustainable business practices, the Komax Group has for many years imple- mented certain Codes of Conduct (for employees, suppliers, and partners) and has a number of Group-wide and local guidelines in place, such as in the areas of procurement, workplace safety, and data protection. In keeping with the new ESG targets, these are to be enhanced with guidelines on topics such as human rights, corruption, and bribery - in alignment with the UN's Guiding Princi-ples on Business and Human Rights.

As a consequence of the consistent strategic anchoring of ESG in the Komax Group, members of the Executive Committee will be set individual ESG targets annually from 2024 onward, with these targets based on the ESG targets laid down in the context of Strategy 2028. The degree of target attainment will be a criterion for the amount of variable compensation paid (cash bonus). The Komax Group will also continue to broaden and optimize reporting on its ESG activities on an ongoing basis. The focus here will be on data compilation and data quality.

The Komax Group is a member of various industry organizations. For example, as part of ARENA2036 and the project next2OEM, interdisciplinary teams are researching how automotive production might work in the future. Potential solutions for digitalization in wire processing are being developed together with other companies as part of the Open Industry 4.0 Alliance, theSPE Industrial Partner Network, and the Single Pair Ethernet System Alliance. Together with other leading technology companies, the Komax Group is looking for holistic solutions for industrial control cabinet construction as part of the Smart Cabinet Building Initiative, with a view to optimally exploiting the considerable automation potential in this area (› pages 48-52).

MATERIALITY ANALYSIS

In its business activities, the Komax Group is on the one hand influenced by the various trends, risks, and opportunities that have an impact on long-term business success. In addition, through its activities it has its own impact on the environment, the economy, and society. In order to identify the key interacting and influencing factors, the Komax Group carried out a comprehensive double materiality analysis in 2022. This forms the basis for the ESG strategy.

The materiality analysis encompasses the following stages:

• - Internal analysis in all relevant topic areas

• - Semi-structured interviews with customers, analysts, investors, proxy advisors, and represen- tatives from peer companies

• - Semi-structured interviews with representatives from the Executive Committee and the Board of Directors, and intensive discussions with both bodies

• - Internal online survey on the topic of ESG, in which more than 25% of all Komax Group employees participated

• - Feedback from external sustainability experts

• - Validation by the Executive Committee and the Board of Directors

This analysis produced nine themes that are material to the Komax Group. These were evaluated by the Executive Committee and the Board of Directors and set out in a materiality matrix in such a way as to demonstrate the relevance of the impact of business activities on the environment, society, and the economy, as well as the relevance for the business success of the Komax Group.

MATERIALITY MATRIX

Relevance of the effects on environment, society, economy

High

Workplace safety and well-being

Customer relations Digital transformation

Medium

Lean management and operational excellence

Medium

High

Relevance for the business success of the Komax Group