Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Rights
• Work Safety
• Environmental Protection
• Sustainability
• Corruption and Bribery

Environmental Achievements

• Reduced power consumption by 8.1% from 3.56 MWh in 2018 to 3.27 MWh in 2019, despite higher production volume.
• Reconstruction of the Küssnacht location in 2019 led to energy savings and reduced risk of environmental pollution.

Social Achievements

• Zero tolerance approach to human rights violations.
• Regular risk assessment and safety improvement measures in place, including employee trainings and work process adjustments.
• Monthly working group meetings to discuss safety issues in healthcare production activities.
• Free influenza vaccination offered regularly.
• Annual donation program "exceet helps" supports selected projects.

Governance Achievements

• Zero tolerance approach to corruption and bribery.
• Well-functioning internal control system with regular detailed reporting to prevent and detect corruption and bribery.
• Clear management and corporate structure with clearly assigned responsibilities.
• Financial systems protected against unauthorized access.

Climate Goals & Targets

Environmental Challenges

• Sustained weak economic development or downturn in Europe, and trade barriers could negatively impact demand for exceet products.
• Difficulty in identifying suitable companies for acquisitions or successfully developing acquired companies.
• Interest rate, liquidity, and currency risks.
• Credit risks regarding financial institutions and customers.
• Potential decrease in product quality.
• Legal risks related to product liability, warranties, or employment law.
• Loss of key employees.
• IT risks, including system failures and data loss.
• Withholding tax risks in Switzerland.

Mitigation Strategies

• Constantly improving technology leadership with development activities and manufacturing processes.
• Focusing on promising market segments (healthcare and secure connectivity).
• Strictly managing fixed costs.
• Using derivative financial instruments to limit interest rate risk.
• Balancing currency needs among Group companies.
• Revolving liquidity planning and substantial net cash position.
• Investing in financial instruments with counterparties with prime credit ratings.
• Group-wide credit risk management.
• Regular audits and quality tests.
• Comprehensive analysis of legal risks by the Legal Department and external consultants.
• Creating a good working environment and attractive remuneration agreements.
• Investing in the expansion and development of modern IT systems.
• Appointing data protection officers.
• Application for reduction of Swiss withholding tax filed in 2019.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers, Société coopérative, Luxembourg

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental Protection
• Social Responsibility
• Corporate Responsibility
• Human Rights
• Data Security

Environmental Achievements

• Increased PCB production by over 35% to 24.4 million units in 2020 (compared to 18 million in 2019), while implementing energy saving measures through building reconstruction and refurbishment.
• Renewed water system in Küssnacht location to reduce waste material and water consumption.

Social Achievements

• Maintained an open communication culture through regular shop floor meetings.
• Enforced employee safety at workplaces and enabled flexible working hours and work-life balance during the COVID-19 pandemic.
• Implemented accident prevention and risk assessment measures, including training and work process adjustments.
• Offered free influenza vaccination.

Governance Achievements

• Established a group-wide risk management system.
• Implemented a zero-tolerance approach to corruption and bribery.
• Established an internal control system with regular reporting and a four-eye principle for significant processes.
• Regularly reviewed strategic opportunities by the General Partner and Supervisory Board.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting customer orders, delaying product launches, and necessitating short-term work.
• Higher quarterly business volatility due to short-term customer orders and project-driven business model.
• Potential decrease in product quality.
• Credit risks regarding financial institutions and customers.
• Legal risks related to product liability, warranties, or employment law.
• IT risks related to system failures and data loss.
• Withholding tax risks in Switzerland (mitigated by tax exemption until April 2023).

Mitigation Strategies

• Short-time working until Q3 2020, receiving EUR 0.4 million in subsidies.
• Continuous improvement of technology leadership through development activities and state-of-the-art manufacturing processes.
• Focus on sustainable market segments (healthcare and secure connectivity).
• Strict cost management and focus on core competencies.
• Regular audits and quality tests by independent testers.
• Group-wide credit risk management and use of counterparties with prime credit ratings.
• Comprehensive analysis of legal risks with external consultants.
• Investment in modern IT systems and multiple safeguards.
• Appointment of data protection officers.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers, Société coopérative, Luxembourg

Sustainable Products & Innovation

• Ultra HDI PCBs

Environmental Metrics

ESG Focus Areas

• Sustainability
• Human Rights
• Work Safety
• Environmental Protection

Environmental Achievements

• Reduced travelling costs
• Maintained work from home policy
• Decreased power consumption in office departments

Social Achievements

• Maintained open communication culture with regular shop floor meetings
• Enforced employee safety at workplaces and enabled home office work with flexible working hours
• Aimed to enhance the quota of female staff at all hierarchical levels

Governance Achievements

• Established an internal control system for diverse organizational, technical and commercial processes
• Adopted a zero-tolerance approach with regard to the violation of human rights and corruption
• Implemented a COVID-19 steering committee to monitor regulations and adjust them according to the pandemic's development

Climate Goals & Targets

Environmental Challenges

• Supply bottlenecks affecting global imports
• COVID-19 pandemic and its potential impact on business operations
• Shortage of IT components and materials
• Negative interest rates on cash reserves

Mitigation Strategies

• Constantly improving technology leadership position
• Focusing on promising sustainable market segments and strictly managing costs
• Implementing COVID-19 risk mitigation measures
• Monitoring business and expectations and coordinating risk mitigation measures
• Keeping higher stocks and reserves for delivering to customers
• Adjusting processes to adapt to changes in the supply chain

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Climate change may affect supply chains, customers, financing, insurance and laws and regulations

Transition Risks

• Changes in travelling costs, logistic costs and energy costs may affect the cost structure

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers, Société coopérative, Luxembourg

Environmental Metrics

ESG Focus Areas

• Green Hydrogen

Climate Goals & Targets

Environmental Challenges

• Sustained weak economic development or a downturn of the economy as well as upcoming trade barriers
• Mergers and acquisitions are inherently risky because of difficulties that may arise when integrating people, operations, technologies and products
• Climate change may affect supply chains, customers, financing, insurance and laws and regulations
• Interest rate, liquidity and currency risks

Mitigation Strategies

• Constantly monitoring segments with permanent and comprehensive activities
• Constantly working on promising sustainable market segments and strictly managing its costs and focussing on the core competences of its activities
• Minimizing risk of default by entering into financial instruments mainly with counterparties with prime credit ratings
• Managing credit risk on a group-wide basis
• Controlling high liquidity after the divestment of the Swiss operational business to mitigate the negative interest rates and default risk
• Comprehensive analysis of legal risks in connection with acquisitions and divestments by management and external specialist consultants
• Investing in the expansion and continual development of modern IT systems
• Using derivative financial instruments from time to time in order to limit financial risks
• Mitigating foreign currency exposure by balancing currency needs among the Group companies
• Ensuring solvency by way of revolving liquidity planning and a solid Net Cash position

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Climate change may affect supply chains, customers, financing, insurance and laws and regulations

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: BDO Audit, Société Anonyme