T h i n - F i l m C o a t i n g a n d Surface Treatment

ANNUAL REPORT 2023

SINGULUS TECHNOLOGIES Thin-Film Coating and Surface Treatment

SINGULUS TECHNOLOGIES develops and assembles innovative machines and systems for efficient thin-film coating and surface treatment processes, which are used worldwide i the Photovoltaics, Semiconductor, Medical Technology, Packaging, Glass & Automotive as well as Battery & Hydrogen markets.

The company's core competencies include various processes of coating technology (PVD sputtering, PECVD, evaporation), surface treatment as well as wet-chemical and thermal production processes.

SINGULUS TECHNOLOGIES sees sustainability as an opportunity to position itself with innovative products. In the focus are environmental awareness, efficient use of resources and avoidance of unnecessary CO2 pollution.

SINGULUS TECHNOLOGIES attaches great importance to responsible and sustainable corporate governance.

ANNUAL REPORT 2023

Table of Content

» Report of the Supervisory Board
» Report of the Executive Board
» Compensation Report
» Combined Status Report of the SINGULUS TECHNOLOGIES Group and the SINGULUS TECHNOLOGIES AG as well as Corporate Governance Report
» Consolidated Financial Statements of the SINGULUS TECHNOLOGIES AG
» Independent Auditor's Report
» Individual Financial Statements
» Glossary

REPORT OF THE SUPERVISORY BOARD

To the shareholders of the SINGULUS TECHNOLOGIES AG

Dear Shareholders,

In this report, we inform you about the main activities of the Supervisory Board in the fiscal year 2023.

SINGULUS TECHNOLOGIES focuses on the development and assembly of innovative machines and systems for efficient production processes in the areas of thin-film technology and surface treatment. Our production systems with innovative processes are used worldwide in various markets such as Photovoltaics, Semiconductors, Medical Technology, Packaging, Display, Automotive as well as in state-of-the-art Battery Technologies and in the future topic of Hydrogen as an energy carrier. Our company's main goal is to provide our customers with customtailored solutions, precisely meeting the specific requirements of our customers. To achieve this, we work closely with them to understand their needs and develop innovative technologies that optimize production processes and increase competitiveness.

Business development in the 2023 financial year was hampered by supply chain problems, labor shortages and energy price increases. In addition, the conflicts in Ukraine and the Middle East unsettled the global economy. The stagnating economy in China and, in particular, the existing overcapacity for the production of solar panels in China slowed down sales of our solar production systems in our most important sales markets in Europe and China.

Key financial indicators such as sales, earnings and therefore equity or freely available liquid funds are affected by this difficult situation. Due to the currently still negative shareholders' equity it is required that SINGULUS TECHNOLOGIES currently has a positive going-concern assumption and is able to document this accordingly. For this matter, please refer to the detailed comments in the Status Report. One of the focal points of the Supervisory Board's activities in the business year 2023 was monitoring the positive going concern forecast. The Supervisory Board repeatedly discussed this issue with the auditors, which was the main reason for the delay in the approval of the

financial statements for the business years 2020, 2021 and 2022. The Board was regularly informed by the Executive Board, obtained advice from experts and accompanied the reorganization of the financing. For details regarding the course of business and the financing situation, please refer to the Status Report.

SUPERVISORY BOARD MATTERS

During the business year 2023 the Supervisory Board of the SINGULUS TECHNOLOGIES AG continued to be comprised of three members. The terms of office of Dr. Wolfhard Leichnitz and Dr. Rolf Blessing ended at the close of the Annual General Meeting on July 19, 2023. Dr. Leichnitz stood for re-election and the Annual General Meeting confirmed the election with a broad majority. Dr. Blessing has stated that he wishes to leave the Supervisory Board at the end of his term of office for reasons of age. Dr. Changfeng Tu stood as a new candidate for the Supervisory Board and was also confirmed by a large majority at the Annual General Meeting on July 19, 2023. During the course of its constituent meeting after the Annual General Meeting, the Supervisory Board elected Dr. Leichnitz as Chairman.

At the proposal of the Supervisory Board and Executive Board, the Annual General Meeting on December 14, 2023 resolved to expand the Supervisory Board by one seat. The interests of the largest shareholder are thus better represented. The largest single shareholder is the Triumph Science & Technology Group Co. Ltd, Beijing, China (hereinafter referred to as "Triumph"), a subsidiary of China National Building Materials Group, Beijing, China, a state-owned enterprise of the People's Republic of China (hereinafter referred to as "CNBM") holds 16.75 % of the share capital of the SINGULUS TECHNOLOGIES AG and had not been represented in the Supervisory Board. An additional Supervisory Board member can expand the competence profile of the Supervisory Board through their skills and expertise. At the proposal of the Supervisory Board, Mr. Denan Chu was elected to the Supervisory Board by the Annual General Meeting on December 14, 2023. The election of Mr. Chu became legally effective with the entry of the amendment to the Articles of Association on January 24, 2024 regarding the expansion of the Supervisory Board. Mr. Chu currently holds the positions of the Board Secretary and General Manager, General Counsel and Chief Compliance Officer at Triumph. He is also member of the board of

China National United Equipment Group Corporation, Beijing, China, a CNBM Group company.

After the reporting period, Dr. Silke Landwehrmann resigned from the Supervisory Board of SINGULUS TECHNOLOGIES AG for personal reasons as of January 17, 2024. During her time on the Supervisory Board, Dr. Landwehrmann shaped the company with her extraordinary expertise and her responsible personality. The Supervisory Board and the Executive Board regretfully acknowledge this step and thank her for the committed and very good cooperation in the couple of years.

The Executive Board proposed a replacement member, Ms. Martina Rabe, Dipl. Bankbetriebswirtin, to the competent local court and the court appointed her as a member of the Supervisory Board with effect from January 17, 2024 until the next Annual General Meeting. Ms. Rabe's particular suitability results from her work in various positions at UniCredit Bank AG, Munich, and Commerzbank AG, Stuttgart, in particular in Recovery Management, as well as her current work at Norton Rose Fulbright LLP. Due to her experience as Chief Financial Officer at the internationally operating NDT Systems & Services AG, Stutensee, Ms. Rabe is qualified as a financial expert within the meaning of Article 100 Para. 5 AktG. Ms. Rabe does not hold other memberships in Supervisory Boards or comparable German and international supervisory committees of business companies.

MAIN ACTIVITIES OF THE SUPERVISORY BOARD IN THE BUSINESS YEAR 2023

In the past fiscal year 2023, the Supervisory Board performed all its duties in accordance with the statutory provisions as well as the Articles of Association, and the bylaws of SINGULUS TECHNOLOGIES. In this function, the Supervisory Board assisted the Executive Board in an advisory capacity on the management of the Company and on all significant business matters.

The set-up of committees was still not required during the period under review due to the size of the Supervisory Board. At its meeting on December 13, 2023, the Supervisory Board adopted new rules of procedure. With the entry of the Annual General Meeting resolutions on January 24, 2024, these rules of procedure for the Supervisory Board have become effective, are publicly available on the website of the SINGULUS TECHNOLOGIES AG and can be viewed under https://www.singulus.de/de/corporate-governance/. The rules of procedure came into force on January 24, 2024 with the entry of the Annual General Meeting resolutions by the responsible local court in Aschaffenburg.

A total of 15 Supervisory Board meetings were held in the fiscal year 2023. Eleven meetings were held as video calls and four meetings were held in presence. All members of the Supervisory Board appointed at the respective points in time participated in all of the Supervisory Board meetings held in the business year 2023. Generally, the Management Board attended the Supervisory Board meetings. However, the Supervisory Board also met alone when it deemed it necessary.

	Dr. Wolfhard Leichnitz	Dr. Silke Landwehrmann	Dr. Rolf Blessing	Dr. Changfeng Tu
January 16 Extraordinairy video conference	O	O	O
Match 8 Extraordinairy video conference	O	O	O
March 22 / 23 Video conference	O	O	O
March 30 Extraordinairy video conference	O	O	O
April 11 Video conference	O	O	O
May 9 Video conference, Q1	O	O	O
July 17 Video conference	O	O	O
July 19 Presence	O	O	O
July 27 Video conference, Q2	O	O		O
August 25 Presence	O	O		0
September 21 Video conference	O	0		0
October 30 Video conference	O	O		O
November 9 Presence, Q3	O	O		0
December 4 Extraordinairy video conference	O	O		O
December 13 Presence	O	O		O
Total	15	15	8	7

The Supervisory Board dealt intensively with the business development of the SINGULUS TECHNOLOGIES AG in the past business year 2023.

Furthermore, the business relations with the shareholder and major customer Triumph as well as the order situation in the segment thin-film solar technology projects was presented by the Executive Board and discussed with the Supervisory Board. For the economic stability of SINGULUS TECHNOLOGIES it is important that Triumph, as the most important customer and largest single shareholder of the company, continues to place orders, supports the company in financing issues and thus fulfills the agreements made until SINGULUS TECHNOLOGIES is able to finance itself again via the capital market.

Another focus was on supporting the audit work for the annual financial statements for the fiscal years 2021 and 2022. The audit of the annual financial statements for these two fiscal years was carried out by KPMG AG Wirtschaftsprüfungsgesellschaft, Frankfurt am Main, as the appointed auditor, and was completed on April 6, 2023. The annual financial statements were approved by the Supervisory Board on April 11, 2023. As the auditor had to be switched due to legal requirements, the Supervisory Board selected a new auditing company. By court order dated May 16, 2023, Baker Tilly GmbH & Co. KG Wirtschaftsprüfungsgesellschaft (BakerTilly), Düsseldorf was appointed as the new auditor for the financial year 2022.

Baker Tilly commenced its audit work in May 2023. The unqualified audit certificate for the fiscal year 2022 was issued on October 29, 2023 and the Supervisory Board adopted the annual financial statements for 2022 on October 30, 2023 and approved the consolidated financial statements, which were subsequently published. The Annual General Meeting for the fiscal year 2022 was then convened and held on December 14, 2023. An important part of the audit work, but also of the Supervisory Board's monitoring activities, was the validation of the going concern forecast. In this regard, the Supervisory Board was advised by external experts.

At each meeting, the Supervisory Board had the Executive Board explain the liquidity situation and forecast in detail. The Supervisory Board also closely monitored the development of the shareholders' equity of the SINGULUS TECHNOLOGIES Group (IFRS) as well as the equity of SINGULUS TECHNOLOGIES Aktiengesellschaft (HGB). In particular, the Supervisory Board reviewed whether the consistently negative equity in the fiscal year 2023 is still due to the same causes as in previous years or whether there are new developments about which the Annual General Meeting must be informed. Originally, the negative shareholders' equity had resulted from differing realization of sales pursuant to HGB and IFRS. As a result, there are

interim losses under the German Commercial Code, which are offset once the project in question has been completed and revenue has been recognized in full. This effect is still one of the main reasons for the negative shareholders' equity. In addition, there are operating losses in the previous years due to weak business situation.

Increasing order intake is essential for the stabilization of the Company. At each meeting, order intake, projects still under negotiation and potential new business areas and markets were discussed with the Executive Board. The Supervisory Board has always been informed why orders that have been under negotiation for a long time have not yet been finally awarded. In many cases, it was the macroeconomic environment that caused customers to hesitate when making major investment decisions.

COOPERATION WITH THE EXECUTIVE BOARD

As in the past, cooperation with the Executive Board was very good throughout fiscal year 2023. The Executive Board continuously reported to the Supervisory Board on all of the important financial indicators, such as order intake, sales, earnings and liquidity including the relevant background information. The current course of business within the individual segments was explained in detail including the respective market conditions. The Executive Board provided the Supervisory Board with the interim reports for the year 2023 as well as the half-year report for 2023 in a timely manner ahead of publication. The reports were presented by the Executive Board and important key indicators and statements explained in detail.

In addition, the Chairman of the Supervisory Board was in regular contact with the Executive Board in order to stay informed of current developments.

CONFLICTS OF INTEREST

In the past business year there were no conflicts of interest of members of the Executive or Supervisory Boards, which have to be disclosed to the Supervisory Board immediately and which the Annual General Meeting has to be informed about.

SHAREHOLDINGS OF SUPERVISORY BOARD MEMBERS

The shareholdings of Supervisory Board members are published both in the Annual Report and on the Internet.

CORPORATE GOVERNANCE

The Supervisory Board regards good corporate governance as important. In the business year 2023, the Company complied with the recommendations of the German Corporate Governance Code with the exception of the deviations published in the Declaration of Conformity with the German Corporate Governance Code in May 2023. The key deviation is the delayed presentation of financial statements for the year 2020 and 2021 as well as 2022. The declarations of conformity are publicly available on the website of the SINGULUS TECHNOLOGIES AG under https://www.singulus.de/de/corporate-governance/. A detailed presentation of corporate governance and the current Declaration of Conformity are included in the Corporate Governance Report within the Status Report of the Annual Report 2023.

EXECUTIVE BOARD MATTERS

In the course of the Supervisory Board meeting on October 30, 2023, the Supervisory Board prolonged the appointment to the Executive Board for Dr. Stefan Rinck until December 31, 2024 as well as the appointment of Markus Ehret until December 31, 2028.

Pursuant to the respective employment contracts, the variable compensation for the members of the Executive Board of the SINGULUS TECHNOLOGIES AG is comprised of the granting of phantom stocks as long-term, variable remuneration and bonus payments, which are granted on the basis of target agreements.

At its meeting on May 9, 2023, the Supervisory Board approved the target agreements for the Executive Board members for fiscal year. No adjustment to the remuneration of the Executive Board was agreed. In the business year 2023, phantom stocks were granted. The issuance did not take place until November 16, 2023 due to delays in the audit of the annual financial statements for 2022.

The remuneration system for the Executive Board and the Supervisory Board was submitted to the Annual General Meeting on July 19, 2023 for approval and approved. Further details on the remuneration of the Executive Board in fiscal year 2023 can be found in the remuneration report, which is printed in the Annual Report.

RISK MANAGEMENT

The SINGULUS TECHNOLOGIES AG has implemented an internal system to manage risks as required by applicable capital market and corporate regulations. This monitoring system is routinely adjusted to the current developments. The Supervisory Board reviewed the appropriateness and effectiveness of the Company's internal control system and risk management. During its meeting on September, 2023, the Supervisory Board was informed in detail about the risk management system and the main threats. The Compliance Management System was also discussed and it was determined that no violations had been reported.

The Supervisory Board is of the opinion that the internal control and risk management systems of the SINGULUS TECHNOLOGIES AG are appropriate and sufficiently effective. The Board agrees with the Executive Board regarding all items of the risk assessment. For further information please refer to the Risk Report of the Annual Report 2023.

Annual and consolidated financial statements as well as Status Report

The auditor issued an unqualified opinion on the financial statements for 2023 on March 30, 2024.

During the meeting on April 4, 2024, the Supervisory Board reviewed the annual financial statements of the SINGULUS TECHNOLOGIES AG according to the German Commercial Code (HGB) for the business year 2023 and the combined management report in the presence of the auditor. There were no objections raised. The annual financial statements of the SINGULUS TECHNOLOGIES AG according to HGB for the business year 2023 prepared by the Executive Board and the combined management report were approved by the Supervisory Board. Accordingly, the financial statements have been adopted pursuant to Art. 172 Sent. 1 AktG. The consolidated financial statements and the combined management report with its individual sub-reports in accordance with International Financial Reporting Standards (IFRS) for the 2023 financial year were also reviewed by the Supervisory Board at the same meeting. There were no objections raised. The consolidated financial statements and the combined Group management report with its individual subreports in accordance with International Financial Reporting Standards (IFRS) were approved by the Supervisory Board.

At the same meeting, the Supervisory Board approved and adopted the Supervisory Board report for the business year 2023. The Corporate Governance Report and the Compensation Report were also approved and adopted. The resolutions of the Executive Board and the Supervisory Board are included in the report of the Supervisory Board to the Annual General Meeting pursuant to Art. 172 Sent. 2.

The two annual financial statements were published on the company's website at https:/www.singulus.com/de/finanzberichte/ after completion and approval by the Supervisory Board.

The Supervisory Board would like to thank the Executive Board and all employees of the Company for their commitment and wishes everyone good health and much success for the future.

Kahl am Main, in March 2024

Dr.-Ing. Wolfhard Leichnitz Chairman of the Supervisory Board

Report of the Executive Board

Dear Shareholders,

In recent years, the global economy has been confronted with a multitude of uncertainties and challenges, which has led to extraordinary volatility. The outbreak of the war in Ukraine, the recovery from the coronavirus pandemic and the ongoing zero-Covid policy in China were among the main driving forces. The stagnating economic situation in China exacerbated the decline in sales of our production systems in the solar sector, our most important market. These circumstances led to postponements in investment decisions on the part of our customers and had a negative impact on our company's order situation over the course of the 2023 financial year. Despite these adversities, sales revenue amounted to € 73.2 million, which was a decline compared to the previous year's level of € 87.9 million. The operating result (EBIT) fell to minus € -9.8 million in 2023.

The annual financial statements for 2020, 2021 and 2022 were adopted in the past year. The audit of the annual financial statements for the 2020 and 2021 financial years was still carried out by KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG), Frankfurt am Main, as the appointed auditor, and was completed on April 6, 2023. Due to the legal requirements for rotation, the Supervisory Board elected a new auditor. The choice fell on Baker Tilly GmbH & Co KG Wirtschaftsprüfungsgesellschaft (Baker Tilly), Düsseldorf, as the new auditor for the 2022 financial year. The audit certificate for the 2022 financial year was issued by Baker Tilly on October 29, 2023, and the Supervisory Board adopted the 2022 annual financial statements on October 30, 2023, and approved the consolidated financial statements, which were subsequently published.

SINGULUS TECHNOLOGIES focuses on the development and design of innovative machines and systems for efficient production processes in the areas of thin-film technology and surface treatment. Our solutions are used worldwide in various markets such as photovoltaics, semiconductors, medical technology, packaging, glass, automotive, batteries and hydrogen.

SINGULUS TECHNOLOGIES' machines and systems are designed to increase efficiency and productivity in the various manufacturing processes. In the area of coating technology, we offer advanced processes such as sputtering (PVD/sputtering), PECVD and evaporation. These technologies enable our customers to apply thin layers precisely and evenly to various materials, which is particularly important in areas such as photovoltaics, semiconductors, hydrogen, and decorative coatings. We focus on research and development, innovation, and continuous technological progress.

Solar Segment

The importance of solar energy for the development of a secure and sustainable energy system is recognized. The energy scenarios developed by the EU as part of its climate targets for 2050 include photovoltaics as a key component. For some time now, the EU has been striving to revitalize the solar industry, with the achievement of a production capacity of 30 gigawatts along the photovoltaic value chain also being discussed in Germany. It is regrettable to note that the pace at which the key measures to promote renewable energies and tackle climate change are being implemented falls far short of the pressing challenges. Debates have been going on for over two years now and there is still a lack of concrete decisions.

However, the establishment of a functioning and independent solar industry that enables the entire value chain from silicon and solar wafers to solar cells and solar modules on an industrial scale of at least 30 to 50 gigawatts requires several years of preparation. There is an urgent need for politicians to make considerable efforts and accelerate decision-making processes in order to establish a sustainable photovoltaic industry.

SINGULUS TECHNOLOGIES is the only European company that provides the most important production steps in photovoltaics for both thin-film solar technology and the production of high-performance crystalline cells and can offer them to its customers.

We are currently maintaining intensive contacts and holding talks with a large number of potential companies and investors to supply machines and turnkey factories in Europe and the USA. We assume that decisions will be made over the course of the coming year and that we will then be able to participate in the incipient surge in demand for production machinery.

Life Science Segment

In recent years, we have worked intensively to strengthen our company in new areas and applications. In addition to our established segments, we are focusing on the life science segment and will continue to expand it. Within this segment, we are bundling our systems for applications in medical technology, primarily with production systems for the manufacture of contact lenses. For decorative coatings, SINGULUS TECHNOLOGIES offers an advanced coating method for consumer goods, which not only enables the fast and cost-effective coating of many parts, but also relies on chromium (VI)-free and solvent-free processes.

Semiconductor Segment

We have continued to develop in the semiconductor segment and have successfully expanded in the market for magnetic coating systems in recent years. Our company has established itself as the market leader in production systems for magnetic TMR/GMR sensors. We have succeeded in opening up a new, interesting application in the semiconductor segment with a new machine configuration and have sold our first machine to a large international company. This involves the production of lightemitting diodes, so-called micro-LEDs (Light Emitting Diodes).

For the future, we see the field of hydrogen as highly interesting, where we are already working with major and internationally leading partners on the development of coating systems for the coating of bipolar plates in fuel cells and electrolyzers. Our aim is to develop coatings that prevent corrosion, offer low electrical resistance, are stable in the long term and can be produced cost-effectively at the same time. The coating machines that we use for these applications are based on proven technologies that we are already using successfully in the solar sector. They make it possible to coat large throughput quantities cost-effectively and to a high standard.

Outlook for the 2024 Financial Year

For 2024, SINGULUS TECHNOLOGIES again expects an increase in sales compared to 2023. The earnings situation of our company should continue to improve. Sales in the range of € 120.0 million to € 130.0 million are expected. EBIT is expected to be in the low double-digit million range.

In order to achieve the forecast, current projects must be completed without material and time delays and further significant new orders must be realized in the coming months of 2024. This requires a growing solar market and the successful implementation of the planned major projects. In addition, sufficient orders must be concluded in the other two segments. We address this in several places in this annual report and refer here only to the company's management report and the comments in the risk report.

The Management Board would like to take this opportunity to thank our employees, who show great commitment to our company and a high level of motivation.

We would of course also like to thank our customers and suppliers as well as our shareholders for their trust.

The Executive Board and the workforce will work together to turn SINGULUS TECHNOLOGIES back into a growing and profitable technology company in the coming years.

SINGULUS TECHNOLOGIES AG

The Executive Board

G E N E R I S P V D

I n n o v a t i v e I n l i n e V a c u u m C o a t i n g S y s t e m

SINGULUS TECHNOLOGIES is a pioneer in t he f ield of sputtering technology. SINGULUS TECHNOLOGIES' state-of-t he-ar t PVD sputtering system stand for innovat ion and progress. The company 's systems use t his technology for t he precise deposit ion of sur faces in various industries. They are mainl y used in photovoltaics, hydrogen technology and the glass industry.

Compensation Report 2023

The Executive and Supervisory Boards of the SINGULUS TECHNOLOGIES AG (the Company) have drawn up this compensation report pursuant to the requirements of Art. 162 German Stock Corporation Act ("AktG").

The report explains the main features of the compensation system for the Executive Board and Supervisory Board and provides individualized information on the compensation granted and owed to current and former members of the Executive Board and Supervisory Board in the fiscal year 2023.

Due to rounding, it is possible that some numbers in this report do not add up precisely to the totals shown and that percentages presented do not accurately reflect the absolute values to which they relate.

This report has been formally audited by the Company's auditors in accordance with Art. 162 (3) of the German Stock Corporation Act (AktG); the corresponding audit certificate is included in this report.

Review of the past business year 2023

The composition of the Executive Board did not change in the year under review.

A) Compensation of the Executive Board

I. Members of the Executive Board in the business year 2023

Dr.-Ing. Stefan Rinck, CEO

Chief Executive Officer; Executive Board member responsible for Marketing & Sales, Technology, Production, Research & Development as well as Strategy and International Activities.

Dr.-Ing. Stefan Rinck has been appointed to the Executive Board until December 31, 2024.

Dipl.-Oec. Markus Ehret

Executive Board member responsible for Finance, Controlling, Investor Relations, Procurement, Human Resources and ESG (CFO).

Mr. Markus Ehret has been appointed to the Executive Board until December 31, 2028.

II. Description of the compensation structure

1. Overview compensation structure

1.1. Design and goals of compensation structure

The compensation of the individual members of the Executive Board is determined and regularly analyzed by the Supervisory Board. It is the goal to appropriately remunerate the Executive Board members according to their functions and responsibilities and to consider the individual performance as well as the economic situation, the success and the future prospects of the company.

The compensation structure for the Executive Board of the Company is determined in accordance with the provisions of the Stock Corporation Act taking into account the recommendations of the German Corporate Governance Code and is geared towards a sustainable and long-term corporate development. The total compensation of the members of the Executive Board is comprised of a fixed and a variable component, divided into short-term and long-term components as well as benefits in kind. It is in line with the Board's tasks and performance as well as with the size and situation of the Company. The compensation system ensures that both positive and negative developments are appropriately reflected in compensation (Pay for Performance). It takes into account both the performance of the Executive Board as a whole and the achievement of individual targets, thus remunerating the work performed by Executive Board members in a results-oriented and competitive manner and creating incentives for Executive Board members to increase the value of the Company. The compensation system is clearly structured and also easily comprehensible and transparent to shareholders.

To plan, manage and control its targets, the Company relies on the key performance indicators order intake, order backlog, sales, EBIT and liquidity. The financing of the operating activities is implemented via the capital market as well as loans from banks and investors.

Executive Board compensation is linked to these key performance indicators, the achievement of strategic goals and the share price via variable compensation. In this way, the compensation system makes a significant contribution to promoting the business strategy and the long-term and sustainable development of the Company. In particular the variable components (annual bonus due to agreed targets and share-based compensation) are aligned with the growth targets for the segments Solar, Semiconductor and Life Science.

The system aims to align the interests of the Executive Board with those of shareholders and other stakeholders. It is geared to providing effective incentives for strengthening the operational success of the Company and sustainably increasing its value. The structure of the long-term, variable component is designed to tie the members of the Executive Board to the Company in the long-term.

The fixed, non-performance-based part is composed of a fixed salary and benefits in kind. It is targeted to amount to 60 % of the target compensation. The high proportion of fixed compensation aims to prevent the Executive Board to enter unreasonably high risks to reach short-term targets.

The performance-related components are split into a variable bonus and a sharebased compensation component (phantom stocks). The variable bonus is tied to achieving individual targets, which include financial, operating and strategic goals including sustainability goals. The phantom stock program is intended to create a long-term incentive and commitment effect by issuing virtual shares. After the lapse of a waiting period of two years the phantom stocks can be exercised in tranches of 25 % semi-annually if the share price of the company exceeds a specified minimum percentage level above the exercise price. The incentive effect is achieved through performance targets, vesting periods and staggered exercise. Effects from short-term share price increases, which are market-related and not company-related, are thus largely eliminated. The phantom stocks represent a compensation component with a multi-year assessment basis that links the compensation of the Executive Board members to the performance of the stock, thus creating an alignment of the interests of the Executive Board and the shareholders.

In its entirety the compensation framework takes into account the regulation of the Stock Corporation Act and the Corporate Governance Code.

1.2. Process to determine, implement and review the compensation

Pursuant to Art. 87a AktG, the Supervisory Board of the Company is responsible for the structure of the system as such, the determination as well as the regular review of the Executive Board compensation system and the total compensation of the individual Executive Board members. In order to assess whether the compensation of the individual members of the Executive Board is in line with market practices, the Supervisory Board bases its determination of the amount of the target compensation on the situation of the Company, the compensation paid by comparable companies to the members of their management (horizontal comparison) as well as the salary level of the first and second management levels within the Company (vertical comparison). The Supervisory Board also ensures that compensation remains competitive so that Executive Board members can be retained and new ones recruited. A balance is achieved through the size of the Executive Board, which currently has the statutory minimum number of members.

The Supervisory Board regularly reviews the structure and appropriateness of the compensation in the course of its first Supervisory Board meeting of the year. In the review the Board takes into consideration the individual performance and the extent of the responsibilities assumed compared with the other members of the Executive Board as well as the economic situation of the company.

In case of material changes in the compensation system, however at least every four years, the compensation system is presented in the course of the Annual General Meeting for approval. The applicable compensation system for members of the Executive Board was approved by the Annual General Meeting by resolution of June on July 19, 2023. Pursuant to Art. 87a (2) AktG, the Supervisory Board may temporarily deviate from the compensation system if this is necessary in the interests of the long-term welfare of the Company. The Supervisory Board has made use of this reduction option in the past due to the difficult economic situation of the Company. However, a reduction of the compensation was not implemented in the business year 2023, since the commitment of the Executive Board to safeguard the continuation was very high in the period under review.

1.3. Composition of the compensation

The fixed, non-performance-based part is composed of a fixed annual salary and benefits in kind such (including cars and insurance).

The performance-based components are split into a variable bonus and phantom stocks. Furthermore, the contracts of the members of the Executive Board provide the Supervisory Board the possibility to grant one-off special payments for extraordinary performance in addition to the variable compensation components ("One-time Bonus").

The compensation covers the entire activities of the Executive Board members, and accordingly also other Group-internal functions and activities of the respective Executive Board members.

At the request of the Executive Board, the Company takes out a life insurance policy for the Executive Board member concerned as part of a salary conversion scheme.

1.3.1. Fixed salary

The fixed, non-performance based, annual salary of the members of the Executive Board is paid in twelve equal partial payments at the respective end of the months and for the last time for the full month during which the employment contract terminates. It is reviewed annually according to appropriateness and adjusted, if required. An adjustment can also be made by granting one-time bonus payments. There was no adjustment of the fixed salary during the year under review.

1.3.2. Variable bonus (target agreements)

The variable bonus is tied to the achievement of individually agreed targets. These targets are reset annually by the Supervisory Board and individually agreed with the members of the Executive Board following the adoption of the budget for the subsequent year. They are based on the respective strategic objectives for the Company, operating and financial key indicators as well as sustainability goals, which have been defined by the Supervisory Board in consultation with the Executive Board. Generally, the targets consist of 50 % financial, 30 % operating and 20 % strategic targets. Strategic objectives also include the achievement of sustainability goals (ESG), which are set by the Supervisory Board. The amount of the bonus is subject to the respective percentage achievement of the target. The assessment basis is the amount corresponding to 80 % of the applicable fixed salary. A weighted average is formed from the individual percentages achieved for each individual annual target. This is applied to the assessment basis to determine the amount of the bonus. The variable bonus may not exceed 80 % of the fixed salary. If the annual targets are exceeded by the respective member of the Executive Board, the Supervisory Board may increase the target achievement to up to 120 % on a case by case evaluation at its sole discretion. In case of an assumed 100 % achievement of the annual targets on average the bonus corresponds to 80 % of the fixed salary. If the targets are not achieved or only partially by less than 50 %, the Supervisory Board decides at its sole discretion if and to what extent a bonus will be paid.

1.3.3. Phantom stocks

The phantom stocks program is the second component of variable compensation and is intended to provide a long-term incentive and retention effect by linking compensation to the sustainable performance of the Company. The best indicator of performance is the share price.

The Supervisory Board determines the number of granted phantom stocks at its own discretion. Each individual phantom stock is designed as a virtual option and entitles after the lapse of a waiting period of two years and the achievement of a success target to receive a payment which corresponds to the difference at exercise between the respective exercise price and the reference price for a bearer share of the company with a nominal value of € 1.00 each. The exercise price corresponds to the simple average of the closing prices (or a relevant subsequent closing price) of the shares of the company on the Xetra platform (or a functionally equivalent subsequent system to the Xetra platform) at the Frankfurt Stock Exchange on the five trading days before the issue date. The reference price corresponds to the (non-weighted) simple average of the closing prices (or a relevant subsequent closing price) of the shares of the company on the Xetra platform (or a functionally equivalent subsequent system to the Xetra platform) at the Frankfurt Stock Exchange on the five trading days before the exercise date. The phantom stocks can be exercised for the first time after a vesting period of two years, which starts at the time of issuing the stocks.

After the end of the waiting period, the phantom stocks can be exercised each year within an exercise period. There are two exercise periods, the first begins after publication of the interim report for the first quarter, the second begins after publication of the interim report for the third quarter. During each exercise period only up to 25 % of the granted phantom stocks can be exercised. If an exercise tranche is not exercised during the exercise period, it can be additionally exercised during later

exercise periods. Furthermore, the exercise of the phantom stocks is only possible upon reaching the success target, i.e. if the reference price at the time of the exercise is at least 15 % higher than the exercise price.

During the term of the phantom stock programs, option rights from the phantom stocks can also be exercised prematurely, i.e. also outside the respective exercise period and before the end of the waiting period, as soon as (i) a takeover bid within the meaning of Art. 29 Para. 1 WpÜG has been published for the company's shares or (ii) a person acquires control within the meaning of Section 29 (2) WpÜG. In these cases, all phantom stocks can be exercised, regardless of whether the performance target has been achieved.

The term of the phantom stocks is five years each after the respective issue date. Phantom stocks, which are not exercised by the end of this term, expire without replacement and compensation.

1.4. Maximum compensation

Pursuant to Art. 87a Para. 1 Sent. 3 No. 1 AktG, the Supervisory Board has set the maximum compensation set out below:

The applicable Executive Board service agreements stipulate that the maximum compensation that the respective Executive Board member can receive in the course of a year (fixed and variable compensation including fringe benefits, a possible onetime bonus and pension contributions) is limited to 3.5 times the respective fixed salary.

In addition, separate maximum amounts are set for the variable compensation components. In the business year 2023, the maximum compensation level was not exceeded.

1.4.1. Variable remuneration

The variable annual bonus may not exceed 80 % of the fixed salary; this also holds true if the target achievement exceeds over 100 %.

1.4.2. Phantom stocks

The granted cash compensation upon exercise of the phantom stocks is limited to three times the exercise price of each phantom stock. In addition, the granted cash compensation from the phantom stocks programs within a period of one year may not exceed the amount of the annual fixed salary. This also holds true if exercise tranches become due within one year, which result from phantom stock programs from different years.

1.4.3. One-off compensation

A potential extraordinary payment granted by the Supervisory Board may only amount to half of the fixed salary and is subject to the overall limit of the compensation, which the member of the Executive Board may receive during the course of one year.

2. Compensation for the business year 2023

The Company uses the vesting-oriented view for "compensation granted". Accordingly, compensation is (already) stated in the compensation report for the financial year in which the activity on which the compensation is based (one or more years) was fully performed. This view enables a meaningful comparison, as, for example, the variable short-term remuneration for the year 2023 is set against the earnings situation of the financial year 2023.

2.1. Fixed salary

The contractually agreed annual fixed compensation of the Executive Board members in the fiscal year 2023 was € 440 thousand for the Chairman of the Executive Board Dr.-Ing. Stefan Rinck and € 300 thousand for Mr. Markus Ehret.

The amount of the fixed compensation depends on the function on the Executive Board and the length of service on the Executive Board.

2.2. Short-term variable compensation

In addition to the fixed salary, the company grants the members of the Executive Board an annually set variable gross compensation ("Bonus"). The respective amount is determined by the Supervisory Board for the respective business year on the basis of annually agreed targets.

The target agreements for the 2023 financial year were concluded on May 9, 2023. These include financial, operational and strategic targets. On March 14, 2024, the Supervisory Board assessed the goal achievement and determined an achieved level of 30 % overall for Dr.-Ing. Stefan Rinck and also 30 % for Markus Ehret. This results in a variable compensation of € 106 thousand and € 72 thousand, respectively.

The activity on which the variable compensation is based was performed in full by the balance sheet date.

The variable compensation is therefore classified as granted for the 2023 financial year, even if the payment is not made until after the completion of the 2023 financial year.

2.3. Long-term variable compensation (phantom stocks)

The Company grants the members of the Executive Board each year phantom stocks pursuant to the phantom stock program resolved by the Supervisory Board.

The phantom stocks for fiscal year 2022 were issued November 16, 2023. The late issue was due to the fact that the 2022 annual financial statements were not published until October 31, 2023. Dr.-Ing. Stefan Rinck was granted 150,000 phantom stocks and Markus Ehret 100,000 phantom stocks.

In the 2023 financial year, the Executive Board did not exercise any phantom stocks from previous years' programs.

At the end of fiscal year 2023 Dr.-Ing. Stefan Rinck held 600,000 phantom stocks, which are composed as follows: (i) 150,000 phantom stocks granted under the 2019 program, (ii) 150,000 phantom stocks granted in fiscal 2020, (iii) 150,000 phantom stocks granted in fiscal 2022 and (iv) 150,000 phantom stocks granted in fiscal 2023.

Markus Ehret held 400,000 phantom stocks, which are composed as follows: (i) 100,000 phantom stocks granted under the 2019 program, (ii) 100,000 phantom stocks granted in fiscal 2020, (iii) 100,000 phantom stocks granted in fiscal 2022, (iv) 100,000 phantom stocks granted in fiscal 2023.

The terms and exercise prices of the individual tranches are shown in the following table:

	Year of issue	Day of issue	Quantity	End of waiting period	Program expiry
	2019	April 11, 2019	150.000	April 11, 2021	April 11, 2024
Dr.-Ing. Stefan Rinck	2020	April 3, 2020	150.000	April 3, 2022	April 3, 2025
	2022	June 17, 2022	150.000	June 17, 2024	June 17, 2027
	2023	Nov 16, 2023	150,000	Nov 16, 2025	Nov 16, 2028
		Total	600,000

	Year of issue	Day of issue	Quantity	End of waiting period	Program expiry
	2019	April 11, 2019	100.000	April 11, 2021	April 11, 2024
	2020	April 3, 2020	100,000	April 3, 2022	April 3, 2025
Markus Ehret	2022	June 17, 2022	100.000	June 17. 2024	June 17, 2027
	2023	Nov 16. 2023	100,000	Nov 16, 2025	Nov 16, 2028

The allocation of the fair value of the phantom stocks on an accrual basis led to income of € 22 thousand in the 2023 financial year. Dr.-Ing. Stefan Rinck's phantom stocks accounted for income of € 13 thousand and Markus Ehret's phantom stocks accounted for income of € 9 thousand.

The activity on which the long-term, variable compensation is based was performed in full by the balance sheet date. The long-term, variable compensation is therefore classified as granted for the 2023 financial year, even if issuance of the phantom stocks is not made until after the completion of the 2023 financial year.

2.4. Other compensation

In addition, the members of the Executive Board receive fringe benefits in kind, such as company cars or lump-sum compensation for use of private cars for professional purposes as well as casualty and personal liability insurances. Each individual Executive Board member has to pay taxes on these fringe benefits as part of the overall compensation.

The other compensation for the business year 2023 amounted to € 52 thousand for Dr.-Ing. Stefan Rinck and € 34 thousand for Mr. Markus Ehret. The members of the Executive Board did not receive additional compensation in the business year 2023 for their activities as managing directors of subsidiaries. A lump-sum share in the amount of 15 % of the fixed salary and the annual variable compensation is deemed to be the compensation for these activities.

2.5. Application of malus and clawback during the reporting period

Dr.-Ing Stefan Rinck's employment contract only provided for the possibility of withholding (malus) and reclaiming remuneration already paid out (clawback) from the contract extension on December 1, 2023. No use was made of this provision. The employment contract that applied to Mr. Markus Ehret throughout the 2023 financial year did not contain a malus and clawback provision. The new employment contract for Mr. Ehret, which contains such a provision, came into force on 1 January 2024.

2.6. Overview individual compensation

The following table presents the individual total compensation of the Executive Board members and the relative share of the respective compensation component in total compensation in accordance with Art. 162 AktG. The activity on which compensation is based was performed in full by the balance sheet date. Compensation for the Executive Board activities is therefore classified as granted for the 2023 financial year, even if payment is not made until after the 2023 financial year.

Compensation granted and owed for fiscal year 2023
				Fixed components			Variable components
Current members of the Executive Board		Date of entry Last position	Fixed compensation in € K	Fringe benefits in € K	Total in € K	One-year variable in € K	Multi-year variable compensation compensation in € K	Special payments in € K	Tota in € K	Total compensation in € K	Share of fixed compensation in %	Share of variable compensation in %
Dr .- Ing. Stefan Rinck	Sept 1, 2009	CEO	440	52	492	106	104		210	702	70	30
Markus Ehret	April 19, 2010	CFO	300	34	334	72	69		141	475	70	30
Total			740	86	826	178	173		351	1.177	70	30

3. Granted benefits after the regular termination of service on the Executive Board

The members of the Executive Board receive a company pension plan financed by the company in the form of defined contributions. The company pays the members of the Executive Board an annual pension contribution in the amount of a specific percentage of their gross fixed annual salary set out in the employment contracts. This percentage shall not exceed 35 % of pensionable income. This form of pension

enables the company to reliably calculate the annual expenses. The amount of the pension payment was calculated as a percentage of the fixed salary on the basis of an approximately targeted pension level, a hypothetical tenure and the expected interest rate development according to actuarial principles. However, the actual pension level is not fixed for a defined-contribution pension, since it depends on the tenure as an Executive Board member and the interest rate development.

The pension benefits include pensions and surviving dependents' pensions. With respect to the pension, it is determined that if a member of the Executive Board retires from the company after completion of the age of 63, a monthly pension or a lump sum will be paid. If a member of the Executive Board retires from the company before the age of 63 but after completion of the age of 60, as an early pension an early monthly pension or an early lump sum will be paid, if the member of the Executive Board asks for the payment of the early pension benefits at the time of leaving the company. The amount of the (early) retirement benefit is based on actuarial principles. In case of death of a member of the Executive Board before claiming (early) pension benefits, the surviving spouse will receive a surviving dependents' lump sum. The amount of the surviving dependents' capital is determined when the insured event occurs and corresponds to the respective premium refund due in the event of death before the start of the pension.

In case of death after claiming the (early) pension benefits through monthly payments, but before the lapse of 20 years after retirement, the surviving spouse will receive a temporarily limited surviving dependent's pension until the lapse of this 20 year period. If there is no surviving spouse entitled for benefits, under certain conditions the surviving children will receive surviving dependents' payments in equal parts.

The pension plan is outsourced to Towers Watson Second e-Trust e.V. ("Association") and is not a charge to the Company's balance sheet. The Association concludes a corresponding liability insurance to insure the pension benefits.

If a member of the Executive Board leaves the Company before the pension benefits are due, the proportional claim for pension benefits remains, regardless whether at the time of leaving the legal vesting applies pursuant to the relevant regulations of the employers' retirement benefits law.

The annual pension contribution for Dr.-Ing. Stefan Rinck amounts to 59.97 % since January 2012 and for Mr. Markus Ehret to 31.58 % since January 1, 2018. The annual pension contributions for the company paid in the year 2023 amounted to approx. € 359 thousand, with approx. € 264 thousand attributable to Dr.-Ing. Stefan Rinck and approx. € 95 thousand attributable to Mr. Markus Ehret.

4. Severance policies

In case of an early termination of the employment contract through statutory notice of termination or in case of termination of appointment to the Executive Board, the members of the Executive Board receive a severance payment limited to two years' compensation (severance cap). The amount is set according to the fixed salary excluding benefits in kind and ancillary benefits in addition to a lump-sum variable compensation in the amount of 25 % of the respective fixed salary considering the pension benefits. If the remaining term of the respective Executive Board employment contract is less than two years, the severance payment is reduced pro rata temporis to the remaining term of the employment contract. In case of an extraordinary dismissal for cause by the Company, there is no right to a severance payment.

5. Claims in the event of death or permanent incapacity for work

In the event of death, the employment contracts of all current members of the Executive Board provide for the continued payment of the fixed remuneration to his widow and dependent children for the month in which the death occurred and for the following nine months, but no longer than until the end date of the respective employment contract.

In the event of permanent incapacity for work and receipt of sick pay, the employment contracts of all current members of the Executive Board provide for entitlement to the difference between the net fixed salary and the net sick pay for a further period of nine months, at the longest, however, until the end date of the respective employment contract.

6. Benefits by third parties

No benefits by third parties were granted or promised to members of the Executive Board with respect to their work as Executive Board members during the period under review.

7. Change of control clauses

The employment contracts of the Company with the Executive Board members historically included a change of control clause. Accordingly, the members of the Executive Board of the Company have an extraordinary termination right, which entitles them to terminate their employment within a period of one year after the change in control at any time with a notice period of six months. These employment contracts expired for both members of the Executive Board in the 2023 financial year. The newly concluded service contracts no longer contain a change of control clause.

Specifically, the Supervisory Board extended the appointment of Dr.-Ing. Stefan Rinck until December 31, 2024 on October 30, 2023. In this context, a new

employment contract was concluded, which came into force on December 1, 2023 and, in accordance with the recommendations of the GCGC, does not contain any provision in the event of a change of control. Furthermore, on October 30, 2023, the Supervisory Board extended the appointment of Mr. Markus Ehret with effect from January 1, 2024 for a further five years until December 31, 2028. In this context, a new employment contract was concluded with Mr. Markus Ehret with effect from January 1, 2024, which also no longer contains a provision in the event of a change of control.

B) Compensation of the Supervisory Board

The system for the compensation of Supervisory Board members is based on the statutory requirements of the German Stock Corporation Act. The compensation for the Supervisory Board is set out in Art. 11 of the Articles of Association of the Company. It is balanced overall and is based on the duties and responsibilities of the Supervisory Board members and on the situation of the Company, also taking into account the compensation arrangements of comparable companies. This enables the best possible monitoring and advice to be provided to the Executive Board, which in turn makes a significant contribution to a successful business strategy and the longterm success of the Company.

In addition to the reimbursement of expenses, the members of the Supervisory Board receive a fixed compensation in the amount of € 40 thousand for each full business year of being a member of the Supervisory Board, which is paid after completion of the business year. The Chairman of the Supervisory Board receives twice this amount, the Deputy Chairman one and a half times the fixed compensation. Members of the Supervisory Board, who are only members of the Supervisory Board or who are Chairperson or Deputy Chairperson in the Supervisory Board for parts of the business year, receive a pro-rated fixed compensation. No performance-related compensation or financial or non-financial performance criteria are provided for. This best reflects the independent control and advisory function of the Supervisory Board, which is not geared towards short-term corporate success but to the long-term development of the Company. The company does not grant any attendance fees. The remuneration does not change even if the Supervisory Board meets frequently.

The Annual General Meeting shall determine the compensation of the members of the Supervisory Board in the Articles of Association at the proposal of the Executive Board and the Supervisory Board. The Annual General Meeting shall resolve on the compensation of the members of the Supervisory Board at least every four years. In this context, a resolution confirming the existing remuneration is also permissible. The remuneration of the Supervisory Board was once again approved by the Annual General Meeting on July 19, 2023 after the reporting period.

The contractually agreed total compensation of the Supervisory Board amounted to € 180 thousand in the business year 2023.

The following table presents the compensation granted and owed to members of the Supervisory Board in fiscal year 2023 in accordance with Art. 162 of the German Stock Corporation Act (AktG). The activity on which compensation is based was performed in full by the balance sheet date. Compensation for the Supervisory Board activities is therefore classified as granted for the 2023 financial year, even if payment of the Supervisory Board compensation pursuant to Art. 11 of the Articles of Association was not made until after the 2023 financial year.

			Fixed components				Variable components
Current members of the Supervisory Board		Date of entry Last position	Basic remuneration Meeting fees		Total	One-year variable	Multi-year variable compensation compensation	Special payments	Tota	Total compensation	Share of fixed compensation	Share of variable compensation
			in € K	in € K	in € K	in € K	in € K	in € K	in € K	in € K	in %	in %
Dr.-Ing. Wolfhard Leichnitz	May 29, 2009	Chairman	80		80		O	O		80	100	0
Silke Landwehrmann	Aug 11, 2019	Vice Chairwoman	60	O	60	0	O	O		60	100	0
Dr. rer. nat. Rolf Blessing (until July 19, 2023)	May 31, 2011	Member	22		22	C	C			22	100	O
Dr. Changfeng Tu	July 19, 2023	Member	18		18					18	100
Total			180		180	e	0	O	0	180	100	0

In the year under review, the members of the Supervisory Board did not receive any compensation or benefits for personally-performed services, in particular consulting or agency services.

C) Loans granted to the members of the Executive and Supervisory Board

The company did not grant any members of the Executive Board or the Supervisory Board advance payments or loans during the year under review.

D) Comparative presentation of the change in compensation

In accordance with Art. 162 Para. 11 Sent. 2 No. 2 AktG, the following table presents the development of the Company's earnings, the total annual compensation granted and owed to current and former members of the Executive Board and the Supervisory Board, and the annual change in the average compensation of employees considered over the last five financial years on a full-time equivalent basis. In the business year 2023, this averaged 255 persons. The compensation of all employees of the Company in Germany, including senior executives as defined in Art. 5 (3) of the German Works Constitution Act (Betriebsverfassungsgesetz), was taken into account. In each case, all collectively agreed salary components or agreed fixed salaries, agreed bonuses and supplements, and any variable compensation components attributable to the 2023 financial year, such as bonuses or special payments, were included in the analysis. The components of the average employee compensation presented therefore correspond in principle to the compensation granted and owed to the members of the Executive Board and the Supervisory Board pursuant to Art. 162 Para. 1 Sent. 1 AktG.

	2019	2020	Annual change	2021	Annual change	2022	Annual change	2023	Annual change
	(in € K)	(in € K]	(in %)	(in € K)	(in %)	(in € K)	(in %)	[in € K]	[in %]
Current members of the Executive Board
Dr .- Ing. Stefan Rinck (CEO) ((thereof phantom stocks issued	1,429 516	1,250 588	-13	562 1)	-55	802 226	43	702 104	-12
Markus Ehret (CFO) (thereof phantom stocks issued)	966 344	835 392	-14	379 1)	-55	643 151	70	475 69	-26
Former members of the Executive Board
Dr. rer. nat. Christian Strahberger (COO) (Nov 1, 2019 - Oct 31, 2022) (thereof phantom stocks issued)	52	711 392	1,267	367 1)	-48	305	-17
Current members of the Supervisory Board
Dr .- Ing. Wolfhard Leichnitz Dr. Silke Landwehrmann Dr. Changfeng Tu	80 16	76 50	-5 213	80 60	5 20	80 60	0 0	80 60	0 O
(since July 19, 2023)	-							20
Former members of the Supervisory Board
Christine Kreidl (Dec 4, 2012 - Aug 10, 2019) Dr. rer. nat. Rolf Blessing	36
(May 31, 2011 - July 19, 2023) Average compensation of employees	40	38	-5	40	5	40	0	18	-55
Employees of SINGULUS TECHNOLOGIES AG	73	58	-20	ea	18	69	1	75	8
Earnings development of the company
EBIT (IFRS) [in € million] Net income (HGB) [in € million]	-8.2 -17.5	-36.8 -34.6	-349 -98	-12.4 -21.8	હિર્ણ 37	5.9 -11.8	148 46	-10.1 0.1	-271 101

INDEPENDENT AUDITOR'S REPORT ON THE AUDIT OF THE REMUNERATION REPORT IN ACCORDANCE WITH SECTION 162 (3) AKTG

To Singulus Technologies AG, Kahl am Main

Audit opinion

We have formally audited the remuneration report of Singulus Technologies AG for the financial year from January 1 to December 31, 2023 to determine whether the disclosures pursuant to Section 162 (1) and (2) AktG have been made in the remuneration report. In accordance with § 162 Abs. 3 AktG, we have not audited the content of the remuneration report.

In our opinion, the accompanying remuneration report includes, in all material respects, the disclosures required by section 162 (1) and (2) AktG. Our audit opinion does not cover the content of the remuneration report.

Basis for the audit opinion

We conducted our audit of the remuneration report in accordance with § 162 Abs. 3 AktG and IDW Auditing Standard: The Audit of the Remuneration Report in Accordance with Section 162 (3) AktG (IDW PS 870 (08.2021)). Our responsibilities under this requirement and this standard are further described in the "Auditor's Responsibilities" section of our report. As an auditing practice, we have fulfilled the requirements of the IDW Quality Management Standard: Requirements for Quality Management in the Auditing Practice (IDW QMS 1). We have complied with the professional requirements of the German Public Auditors' Code and the Professional Code for Public Auditors / Certified Public Accountants, including the independence requirements.

Responsibility of the Management Board and the Supervisory Board

The Management Board and the Supervisory Board are responsible for the preparation of the remuneration report , including the related disclosures, in accordance with the requirements of Section 162 AktG. In addition, they are responsible for such internal control as they have determined necessary to enable the preparation of a remuneration report that is free from material misstatement, whether due to fraud or error.

Responsibility of the auditor

Our objective is to obtain reasonable assurance about whether the remuneration report includes, in all material respects, the disclosures required by section 162 (1) and (2) AktG and to issue an auditor's report thereon.

We planned and performed our audit such that we can determine the formal completeness of the remuneration report by comparing the disclosures made in the remuneration report with the disclosures required by section 162 (1) and (2) AktG. In accordance with § 162 Abs. 3 AktG, we have not audited the content of the disclosures, the completeness of the individual disclosures or the fair presentation of the remuneration report.

Limitation of liability

For the performance of the engagement and our responsibility and liability, including in relation to third parties, the "General Engagement Terms for Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften" in the version dated January 1, 2017 issued by the Institut der Wirtschaftsprüfer apply.

Düsseldorf, March 30, 2024

Baker Tilly GmbH & Co KG Auditing company (Düsseldorf)

Thomas Gloth Auditor

Auditor

Jonas Hagen Auditor

T I M A R I S

Vacuum Deposition System for Semiconductor Technology

SINGULUS TECHNOLOGIES offers innovat i ve solut ions for t he precise deposit ion of sensors, inductors, micro-LEDs and ot her semiconductor applicat ions. The TIMARIS system plat form enables a modular conf igurat ion wit h various process and add-on modules to optimally meet the requirements of different applications.

CONTENT

Preface	37
Basics of the Group	38
Goals and Strategy	41
System for the Company's Management	44
Research, Development and Engineering	47
Headcount	49
Economic Report	50
Business Trends	54
Status Report	56
Outlook	63
Risks and Opportunities Report	66
Environment and Sustainability	86

Takeover-relevant Disclosures pursuant to Sections 289A S. 1, 315A S. 1 HGB and Explanatory Report	88
Financial Accounts pursuant to HGB	94
Corporate Governance Declaration	99
Declaration of the Executive Board pursuant to Art. 297 Para. 2 S. 4, Art. 315 Para. 1 S. 5 HGB	100
Declaration of Corporate Governance pursuant to Art 289f and 315d HGB including Corporate Governance Report of the SINGULUS TECHNOLOGIES AG	104
Consolidated Financial Statements of the SINGULUS TECHNOLOGIES AG	122
Independent Auditor's Report	176
Individual Financial Statements	188

Combined Status Report of the SINGULUS TECHNOLOGIES Group and the SINGULUS TECHNOLOGIES AG

Combined Status Report of the SINGULUS TECHNOLOGIES Group and the SINGULUS TECHNOLOGIES AG

SINGULUS TECHNOLOGIES received the audit opinions for its 2020 and 2021 annual financial statements in April 2023 after the responsible auditor was sufficiently convinced of the Company's positive going concern forecast. In May 2023, Baker Tilly GmbH & Co. KG was appointed as the new auditor on a rotational basis and issued an unqualified audit opinion for the single-entity and consolidated financial statements for the fiscal year 2022 on October 29, 2023.

The business year of the company corresponds to the calendar year and ended on December 31, 2023.

The Company exercised its right pursuant to Art 315 (5) German Commercial Code (Handelsgesetzbuch (HGB)) to prepare a combined status report for the SINGULUS TECHNOLOGIES Group and the SINGULUS TECHNOLOGIES AG. Since the course of business, the situation of the Company as well as the opportunities and risks of future developments of the SINGULUS TECHNOLOGIES AG and the SINGULUS TECHNOLOGIES Group broadly coincide, the following statements, in particular references to specific data, refer to the SINGULUS TECHNOLOGIES Group, if not stated otherwise.

Basics of the Group

Business Model and Divisions of the SINGULUS TECHNOLOGIES Group

SINGULUS TECHNOLOGIES (hereinafter also referred to as the Company) is a global high-tech engineering company specializing in the development, manufacture and sale of vacuum coating technology, surface technology, wet-chemical and thermal process technology. The offer includes the sales of systems and services.

The business activities of the Company are divided into three segments. They include: