Manz : Sustainability Report 2023

Sustainability Report 2023

2

Index

3

8	Letter from the Managing Board	ENGINEERING
10	About this report	TOMORROW'S
PRODUCTION
11	Sustainability Strategy and Management

1. Business modell
2. Organization

1. Key sustainability topics

1. Strategy and goals

1. Stakeholder dialog

24 Environmental and Climate Protection

1. Environmental management system

1. Energy consumption

1. Waste generation and recycling
2. Water and resource conservationz

1. Greenhouse gas emissions

34 Employees and Training

1. Equal opportunities and diversity

1. Staff development

1. Occupational health and safety

48 Governance und Compliance

1. Sustainable remuneration structures
2. Compliance Management
3. Management of sustainability risks
4. Community commitment

52 Quality and InnovationManagement

1. Sustainable supply chain
2. IT security and data protection

56 Overview of Goals

58 Disclosure EU Taxonomy

1. Taxonomy-eligibleand taxonomy-aligned economic activities
2. Procedure at Manz AG
3. Application of the EU Taxonomy to the business activities of Manz AG
4. No significant impact on other environmental objectives
5. Compliance with minimum social standards

62 Revenues

1. Capital expenditure

1. Operating expenditure

1. GRI Table
2. Independent assurance practitioner's report

1. Imprint

Manz AG

Sustainability Report 2023

4

Manz is shaping the future. Therefore, our slogan is taking on a new look. ­Derived from a technical engineering drawing, an arrow with three "joints" is created, which, like Manz, is energetic and directional - as a pioneer in mechanical and plant engineering.

Significance

Our Slogan

ENGINEERING:

The focal point is our engineering. This is reflected in the middle "joint" with the Manz logo. We think technology in a new way. Together with you. Our systems are scalable, flexible and automated.

ENGINEERING TOMORROW'S PRODUCTION

The new design expresses the dynamism and innovative power of Manz and is supported by a visual world created by artificial intelligence. This new visuality of the slogan is intended to recharge the internationally distributed Manz media in the future and set a sign for the technology and production of tomorrow.

TOMORROW'S

TOMORROW'S:		PRODUCTION:
The world is moving fast. We move with it.		Best-in-class production solutions for the
Therefore, the top "joint" represents the future		global megatrends of electromobility and
in our visualization. As thought leaders, it is		digitalization - that is the third component of
our ambition to efficiently solve tomorrow's		our visualization of Manz's mission.
challenges in a perfect manner. Green and
electric, smart and digital.

6

Mission Statement of Manz AG

Mission Statement of Manz AG

7

Manz -

Engineering Tomorrow,s Production

As a high-tech engineering company, we develop best-in-class production solutions­ for lithium-ion batteries and electronic components and devices for our customers. This makes us an innovative trailblazer for the global megatrends of electromobility and digitalization­.

With the two segments Mobility & Battery Solutions and Industry Solutions, Manz covers the entire range of modern production solutions: from customer-specific individual machines to standardized modules and systems to turnkey lines for efficient mass production. Our customers benefit from high resource efficiency with higher throughput and shorter time- to-market. Technologically, we utilize our many years of expertise in the fields of automation, laser processing, wet chemistry and inspection systems, which we have acquired and ­continuously expanded in our more than 35 years of company history.

With our first-class production solutions, we address attractive markets that are driven by megatrends and characterized by sustainable growth. We want to systematically exploit these opportunities. As part of our growth strategy, we are focusing in particular on the development of cutting-edge technologies, partnerships with industry leaders and the ­realization of economies of scale through the modular design of our production facilities.

Manz AG

Sustainability Report 2023

8	Letter from the Managing Board

Letter from the Managing Board

Dear Readers,

Manz AG continued to expand its sustainability activities in 2023. With our production ­solutions, which we develop in close cooperation with our customers, we are contributing to the green transformation of the economy. For example, our machines and plants for battery production and for other components of the electric powertrain enable the transformation of the automotive industry to electromobility. In doing so, we are making a valuable contribution to significantly reducing carbon emissions in the transport sector. We also support the expansion of renewable energies, as storage solutions manufactured on our production facilities make renewable energy from photovoltaic or wind power plants available when it is needed. When developing new machines and systems, environmental aspects such as a low use of materials or small carbon footprint are considered from the beginning. This is set out in a global guideline for environmentally friendly machine development, which was implemented in 2023 as part of the Global Engineering Standard.

An important milestone for Manz AG's sustainability efforts last year was the validation of our environmental management system in accordance with the EMAS standard at the Reutlingen site. As part of the on-site audit, Manz AG was certified as having a very well-organized environmental management system overall. As a result, we fulfill the requirements of the world's most demanding and effective environmental management system and ISO 14001 at our headquarters and will work on continuously improving it in the future.

In addition, Manz AG has dealt intensively with the requirements of the Corporate Sustainability­ Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). The inclusion of external stakeholder groups in the materiality analysis, originally planned for 2023, will be implemented as part of the assessment of double materiality in accordance with ESRS and will be considered for sustainability reporting on financial year 2024.

As the warmest year since climate records began, 2023 has once again shown that we all need to increase our efforts in the fight against climate change. According to the European Union's Copernicus Climate Change Service, the average global temperature in 2023 was

1.48 degrees Celsius above the pre-industrial level and therefore dangerously close to the Paris Climate Agreement target of limiting global warming to 1.5 degrees Celsius. Exceed- ing this temperature target will have devastating effects on ecosystems, communities, and livelihoods, some of which have already occurred. Against this backdrop, we will continue to systematically implement our climate protection strategy in the current year and work on avoiding and reducing our carbon emissions.

Letter from the Managing Board

9

In addition to environmental issues, the social aspects of sustainability are equally important to us. In this context, Manz AG places a special focus on the continuous development of its employees, who - especially in view of the increasing shortage of skilled workers - are a crucial component of the company's long-term success. We also assume social responsibil- ity, for example through our annual support of social institutions in the Neckar-Alb region. For us, economic success and responsible action are therefore not a contradiction in terms, but key factors for the future viability of the Group.

We are pleased to present the progress we have made in achieving our sustainability goals in this report and hope you find it interesting reading. If you have any feedback or suggestions for us, please do not hesitate to contact us.

The Managing Board of Manz AG

Martin Drasch

Manfred Hochleitner

10	About this report
	Reporting period and scope

About this report

Reporting period and scope

This sustainability report covers the period of financial year 2023 from January 1 to ­December 31, 2023. Manz AG has been preparing an annual sustainability report since the 2017 financial year. The reports are available on Manz AG's website at www.manz.com in the "Investor Relations" area in the "Publications" section under "Reports".

Unless otherwise specified elsewhere, this sustainability report covers Manz AG and its subsidiaries (collectively, the "Manz Group" or the "Group") with development and ­production facilities in Germany, Slovakia, Hungary, Italy, China, and Taiwan, as well as the sales and service subsidiaries in the United States and India.

About this report

11

Methodology and frameworks/Business model

Methodology and frameworks

For the preparation of our sustainability report, we are guided by the recommendations of the Sustainability Code (Deutscher Nachhaltigkeitskodex - DNK) as well as the standards of the Global Reporting Initiative (GRI). We have reconciled the information available in this report with the GRI standards in an overview table at the end of the report. In addition, developments in the area of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) have been continuously monitored and have already been partially taken into account for this report.

This report also complies with the statutory requirements for a non-financial group report pursuant to Sections 315 b, 315 c in conjunction with 289 c to 289 e German Commercial Code (HGB) and the requirements of Article 8 of REGULATION (EU) 2020/852 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of June 18, 2020 on establishing a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (hereinafter the "EU Taxonomy Regulation") and the delegated acts adopted in this regard, as well as with their own interpretation of the wording and terms contained in the EU Taxonomy Regulation and the delegated acts adopted in this regard, as presented in "Disclosure EU Taxonomy" of the non-financial group report.

Business model

Manz AG, the parent company of the Manz Group, is a listed German corporation based in Reutlingen. As a global high-tech mechanical engineering company, we develop innovative production solutions for lithium-ion batteries and electronic components and devices for our customers. Our product portfolio spans the entire range of modern production systems: from customized individual machines for laboratory production or pilot and small series ­production, to standardized modules and systems and turnkey lines for efficient mass pro- duction. We focus on national and international customers from the sectors of automotive & electromobility, battery manufacturing, electronics and energy.

We divide our operating activities into the two segments Mobility & Battery Solutions and Industry Solutions. Our many years of expertise and know-how in the fields of automation, laser processing, digital printing, inspection systems and wet chemistry form the basis for our successful product development. In addition to our cutting-edge production solutions, we offer our customers comprehensive services related to these core technological com- petencies: from simulation and factory planning through process and prototype development to customer training and after-sales service. We also act as a development partner for industrial companies and, as such, support the market maturity of new technologies.

Manz AG

Sustainability Report 2023

12	Sustainability Strategy and Management
	Organization/Key sustainability topics

Organization

In 2018, we launched an ESG Task Force. The interdisciplinary team is made up of colleagues from the Marketing & Corporate Communications, Investor Relations, Purchasing, Human ­Resources and Finance departments. Under the leadership of Axel Bartmann, Director

Marketing­ & Corporate Communications, the ESG Task Force develops strategies, goals and measures, supports their implementation at the individual locations, and also documents the progress of the Manz Group in the area of sustainability. At the Manz Group's international locations, so-called "Sustainability Delegates" have been appointed, who are available to their local ­colleagues as contacts for sustainability issues and are in regular contact with representatives of the Task Force. In this function, the "Sustainability Delegates" report directly to the managing director of the respective subsidiary. The Task Force reports directly to CFO­ Manfred Hochleitner, who also has overall responsibility for the topic of sustainability across the Manz Group. Manfred Hochleitner is advised by the Supervisory Board.

The focus of the ESG Task Force in financial year 2023 included the implementation of the European EcoManagement­ and Audit Scheme (EMAS) and the certification in accordance with ISO 14001 at the Reutlingen location. In addition, further projects to increase energy

efficiency­ were implemented last year, such as the use of waste heat to heat buildings or the installation of LED lighting or heat pumps. Furthermore, the Group-wide information campaign on sustainability launched in 2022 was continued. The aim of this campaign is to further ­sensitize the workforce to the topic of sustainability and to present concrete ideas on how employees can contribute to a future worth living through their actions.

Key sustainability topics

The process for assessing the double materiality of sustainability information in accordance with CSRD/ESRS for the Manz Group was launched at the end of 2023. As the project plan ­envisages a total project duration of around four months, the results will only be available after publication of this report. We have therefore decided to use the assessment of the material topics for Manz and its stakeholders carried out at the end of 2022 as the basis for this report. We would therefore like to explain the procedure again here: First, we conducted an internal survey of 23 managers, including the Managing Board and the managing directors of the international subsidiaries. The respondents were provided with a list of 17 topics that were identified as fundamentally relevant for the Manz Group as part of an international peer group analysis. On a scale of 1 to 5, the respondents rated the relevance of the ­respective topic for Manz and for the stakeholders.

Sustainability Strategy and Management

13

Key sustainability topics

After evaluating the topics, they were grouped into four main subject areas, with the following ranking based on the average assessment of the respondents:

1. Market and Products
2. Governance and Compliance
3. Employees and Training
4. Environment and Climate Protection

The following section explains how the key issues are reflected in our sustainability strategy and the objectives it pursues.

Manz AG

Sustainability Report 2023

14	Sustainability Strategy and Management
	Strategy and goals

Strategy and goals

Strategy

Our sustainability strategy is based on the focus topics identified in the course of the internal survey and the 17 global Sustainable Development Goals (SDGs) defined by the United Nations as part of the 2030 Agenda.

In addition to the four key areas of Market and Products, Governance and Compliance,­ ­Employees and Training, and Environmental and Climate Protection, these are the following SDGs:

• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 13: Climate Protection Measures

Market and Products

Our customers are at the center of everything we do, and we want to convince them with highquality­ and safe solutions every day. Technologically speaking, our production facilities are based on our many years of experience in automation, laser processing, inspection sys- tems, wet chemistry and digital printing. In this way, and through the rapid implementation of innovations, we realize high-quality solutions for our customers and thus pursue the goal of making a significant contribution to increasing their productivity.

To ensure the quality and safety of our products, we have established ISO 9001:2015 certified quality management for our sites in Germany, Hungary, Slovakia, Taiwan and China. In addition, we ensure full compliance with the "Essential Safety Requirements" of the European Union in the development and manufacturing of our machines and plants. We report in detail on the individual measures and certification processes in the chapter "Quality and innovation management" on page 52 of this sustainability report.

Our customers' satisfaction with Manz AG's solutions and services is reflected, among other things, in the high proportion of existing customers, which amounted to around 60 % of incoming orders in 2023. Our longterm­ goal is to continuously increase overall customer satisfaction. To make our progress measurable, we conducted a global customer satisfaction analysis for the second time in 2023. In addition to overall satisfaction, the survey also analyzed satisfaction with our performance, solutions and services in different project phases. In addition, potential for continuous improvement of our customer processes was identified.

Sustainability Strategy and Management

15

Strategy and goals

Our customers are particularly positive about the competence, accessibility and reliability of our employees. We want to continue to cultivate these qualities in the coming years, and also improve further in the areas of speed/response time, as well as commitment. The customer satisfaction analysis is part of our continuous stakeholder dialog, which is described on page 18 of this sustainability report.

Governance and Compliance

Our corporate actions are consistently aligned with our core values - reliability, credibility, legality. In doing so, we are guided, on the one hand, by the German Corporate Governance Code (Deutscher Corporate Governance Kodex - DCGK), which goes beyond the statutory obligations. On the other hand, we have laid down our standards of conduct and ethics throughout the Group in the form of a Code of Conduct. With this Code, we provide our employees with clear guidelines and recommendations for good conduct in a business and operational environment, for handling information, and for dealing with each other with ethical and moral integrity. In their function as role models, our managers are required to act, in particular, with ethical and moral integrity. In addition, our Business Partner Code of Conduct has defined the basis for Manz AG's business relationships with all of our

business­ partners since 2020. The Code is reviewed regularly and adapted to current ­developments and requirements where necessary. The Business Partner Code of Conduct is available on Manz AG's website at www.manz.com in the "Company" area under "Sour­ cing" in the "Downloads"-section.

To ensure responsible corporate governance, the Manz Group has a groupwide­ compliance system in place. In addition, employee training sessions on compliance are held yearly. Our goal is to avoid corruption cases or fines for non-­compliance with laws and regulations altogether, which we also achieved in 2023. We report in detail on the measures for ­responsible corporate governance in the section "Governance and Compliance" on page 48 of this report.

Employees and Training

Manz AG's positive reputation and credibility as a socially committed company, as well as a fair, reliable, and appreciative employer, are key prerequisites for the company's longterm­ success. We, therefore, attach great importance to attracting new talent and retaining qualified employees over the long term. We want to sustainably increase Manz AG's attractiveness as an employer by cultivating a culture of equal opportunity and diversity. Our mediumterm­ goal is to increase the proportion of women in the entire workforce and among managers to 25 %. In addition, we are constantly developing our training and development opportunities for employees, with the aim of providing all employees with at least two

working­ days of training per year. Another key concern for us is to offer our employees ­attractive and performance-based compensation and to encourage them to actively participate in the further development of Manz AG through our "Innovation Forum". The online- based discussion forum can be used, for example, to submit suggestions for improvement

Manz AG

Sustainability Report 2023

16	Sustainability Strategy and Management
	Strategy and goals

on sustainability aspects, the topics of "new technologies, new markets, potential new ­customers" and "general suggestions for improvement".

A detailed account of employeerelated­ initiatives can be found on pages 38 to 41 of this ­report. Further forms of dialog with our employees are described in the chapter "Stakeholder dialog" (page 18). On page 51, we also report on how we fulfill our corporate responsibility to the community.

Environment and Climate Protection

We see the responsible and careful use of our resources as our social obligation to present and future generations. As part of our holistic approach, we regularly review our business activities for potential environmental risks and have defined various targets and measures for environmental and climate protection in our sustainability strategy. The priority is to avoid or reduce greenhouse gas emissions (GHG emissions). For example, we want to reduce­ GHG emissions out of Scopes 1 and 2 in the Group in relation to revenues by 21 % compared to the base year 2020 until 2026. We also want to continuously reduce energy consumption in relation to revenues compared to the previous year and at the same time increase the share of renewable energies in electricity consumption.

Another goal is to reduce fuel consumption in relation to the vehicle fleet by 10 % each year compared to the previous year. We also plan to continuously reduce our water consumption in relation to revenues at all Manz locations in the coming years through audits and employee awareness-raising measures.

We aim to continuously reduce GHG emissions caused by employees' daily commutes by raising awareness among the workforce and providing targeted support for sustainable

mobility­ options. For example, all employees at the Reutlingen site have access to an app for carpooling.We report in detail on these and other measures and the current status of ­target achievement in environmental and climate protection on pages 24 to 29 of this report.

Sustainable Development Goals (SDGs)

Furthermore, we support the following four of the 17 SDGs of the United Nations, to which we contribute with our activities and measures in the area of sustainability and corporate social responsibility (CSR).

Sustainability Strategy and Management

17

Strategy and goals

SDG 7: Affordable and clean energy

Among other things, we realize production solutions for the storage of energy generated via renewable means. These solutions help offset the inherent volatility of renewable energy sources. This, in turn, allows the share of renewable energies to be expanded, since, for ­example, excess wind and solar energy can be stored and made available precisely when less energy can be generated. In this sense, we contribute to the following subgoals­ of SDG 7:

• By 2030, significantly increase the share of renewable energy in the global energy mix (7.2)
• By 2030, double the global rate of increase in energy efficiency (7.3)

SDG 8: Decent work and economic growth

As a responsible employer, we are committed to ensuring decent work, including respect for labor rights, and promoting equal pay for work of equal value and a safe working environment through our corporate actions. We respect internationally recognized human rights and support compliance with those rights. We strictly reject any form of forced or child labor­ . As an innovative high-tech engineering company, we support our customers worldwide in increasing their economic productivity through technological modernization and innovation and continuously improving resource efficiency in production.

SDG 9: Industry, innovation and infrastructure

With our production solutions and services, we enable our customers to use resources more efficiently and thus make their production processes more sustainable. As a driver of innova- tion, Manz AG concentrates on the continuous optimization of proven solutions and the development of new technologies at its various development locations. In doing so, we rely on an interdisciplinary "R&D Council", which interlinks the various competencies of our employees across segments. With our innovative production solutions for battery manufacturing and for various components in the fields of automotive electronics and the electric powertrain, we are helping electromobility achieve a breakthrough.

SDG 13: Climate protection measures

As an internationally active high-tech engineering company, we are aware of our responsibility about climate and environmental protection. We have therefore taken a variety of measures­ to combat climate change and its effects and have set ourselves the goal to reduce Manz AG's carbon footprint (Scope 1 and 2) in relation to revenues by 21 % compared to the base year 2020 until 2026. In addition, we want to gradually expand the GHG emission sources considered under Scope 3 to include relevant categories and reduce them as much as possible. We also support selected climate projects in developing and emerging countries, thereby offsetting the remaining GHG emissions from Scopes 1 and 2.

Manz AG

Sustainability Report 2023

18	Sustainability Strategy and Management
	Stakeholder dialog

Sustainability Strategy and Management

19

Stakeholder dialog

14 Corporate news and press releases

6 Capital market

conferences

4 Webcasts

Stakeholder dialog

Manz maintains an ongoing dialog with key stakeholder groups such as employees, cus- tomers, suppliers, investors, analysts or banks. In addition, we are in permanent exchange with other stakeholder groups such as our strategic partners, players in science and ­research, the media, politics at municipal, regional and European level, and associations.

We involve our employees in the further development of our company for example in the form of regular employee surveys on current topics. The results of these surveys are published on the Intranet and included in the respective decision-making processes. In addition, our employees can make suggestions within the framework of the "Innovation Forum". The "Innovation Forum" is an online discussion forum for employee suggestions for improve- ment, for example on sustainability topics as well as on "new technologies, new markets, potential new customers" or "general suggestions for improvement". In addition to these measures, the Group companies offer employees further opportunities to participate and exchange views, for example, regular employee meetings, community events such as ­summer parties and team events or feedback discussions with superiors. As part of the "Manz Inside" employee meeting, the Managing Board regularly informs employees about current topics.

Service at Manz does not begin and end with the delivery of the equipment or its use in production. We see ourselves as a development partner who develops solutions together with our customers. That is why we support our customers in numerous development and design steps right from the start. With our aftersales­ service, we also ensure that, after commissioning, the machine does exactly what it was purchased for: work efficiently. Our customers can rely on our 24/7 hotline and remote service.

In 2023, a global customer satisfaction analysis was conducted for the second time in ­collaboration with an independent market research institute. In addition to overall satis­ faction, satisfaction with our services, solutions and services in various project phases was also surveyed and potential for improvement identified. Further information on the customer satisfaction analysis can be found on pages 14 to 15 of this report.

For the Manz Tech Day in October 2023, we invited around 90 managers and experts from the industry to our company headquarters in Reutlingen to offer them an exclusive look ­behind the scenes of high-tech engineering. In addition to the numerous innovations that the participants were able to experience during the tour of our production halls, the event focused above all on intensive discussions with our customers and partners.

We also attach great importance to active dialog with investors, analysts and banks. The regular and prompt publication of reports relevant to the company underscores our goal of providing comprehensive information on the company's developments. In doing so, Manz AG, with its listing in the Prime Standard Segment of the Frankfurt Stock Exchange, fully complies with the highest transparency requirements. In addition to our statutory obligations, we regularly participate in capital market conferences, organize roadshows in ­Germany and abroad, offer conference calls with webcast and audio replay as an online service on the company's website, and publish corporate news and press releases on current corporate developments.

The following table provides an overview of the dialog offerings and key topics for the individual stakeholder groups:

Stakeholder	Dialog offer	Key topics
Employees	Personal dialog, intranet,	Work-life balance; employer attractiveness;
	exchange via Innovation Forum,	human resources development; innovation
	employee meetings (incl. Manz	management; compliance; occupational
	Inside), community events,	health and safety
	Team events
Public/society	Media relations, website, events	Promotion of culture and sports, as well as
		equality and diversity in society; employer
		attractiveness
Customers and	Personal dialog via account	Product and service portfolio; individual
suppliers	managers; Business partner code	solutions; customer service, quality, supplier
	of conduct, customers satisfaction	security
	survey, Trade fairs, Tech Day
Strategic	Regular exchange in Steering	Joint customer projects; business
partners	Committees with the participation	development, project progress
	of all partners
Investors,	Personal dialog (incl. phone/	Business model and strategy, business
analysts	e-mail), conferences or roadshows,	development, corporate governance,
and banks	financial and sustainability reports,	business planning and risk management
	website, annual general meeting,
	capital markets day, capital market
	conferences, press releases and
	corporate news
Media	Press releases and corporate news,	Business model and strategy, business
	media events	development, technological innovations
Science and	Research projects	Development of innovative and efficient
research		production processes for future technologies
Politics	Regular exchange at European	Establishment of industrial battery cell
	and federal level, as well as at	production in Germany and Europe; promoti-
	municipal and regional level	on of Baden-Württemberg and the Neckar-
		Alb region as a business location
Associations	Regular dialog within the framework	Establishing and expanding the network,
	of association meetings	strengthening the representation of interests
		at the political level, business model and
		strategy

Manz AG

Sustainability Report 2023