SCALING HEALTHCARE INNOVATION GLOBALLY.

Connecting every thread.

Dear Stakeholders,

Tecan's strategy remains clear: delivering scalable solutions that drive healthcare innovation. Our focus on connecting science, technology, and healthcare enables breakthroughs that improve lives.

Healthcare and precision medicine need data: lots of it. Both fields continue to evolve through traditional diagnostics, innovative medical devices and digital transformation. Laboratory diagnostics are the lifeblood of medicine and will remain so for the foreseeable future. At the same time, the digital transformation is in full swing: from blood analysis and liquid biopsies to smart wearables, biosimulations and in-silico research, the demand for advanced technologies continues to accelerate. As health data emerges as the foundation of modern medicine, Tecan's pivotal role in enabling these advancements becomes ever more crucial to advance diagnostics, research, and patient care.

Our latest innovations underline our commitment. To give just a few examples: the Veya platform democratizes lab automation, enabling efficient and 'effortless' scaling. Tecan and Illumina have created a powerful solution that is advancing multiomics research. In diagnostics, the Phase Separator has doubled throughput in liquid biopsy workflows, while solutions like the Avive Connect AED demonstrate our impact in critical care.

Tecan stands on solid ground. Our proven strategy and financial resilience instill confidence, assuring us that we are on the right path. By connecting people, science, and solutions, we continue scaling healthcare innovation globally.

Thank you for your trust and partnership.

Dr. Achim von Leoprechting Chief Executive Officer

SIMPLIFYING THE PROCESS TO TRANSFORM HEALTHCARE.

Customers in research and diagnostics labs tell us that scaling operations can often feel out of reach — particularly for smaller institutions or those with limited technical expertise. The Veya™ platform, Tecan's latest innovation in lab automation, is breaking down these barriers and opening up new opportunities for labs of all sizes.

Veya delivers a tailored user experience with predefined workflows that simplify even the most complex processes. By automating repetitive tasks and streamlining operations, Veya allows labs to focus on what matters most: delivering high-impact research and clinical results.

One key advantage of Veya is its accessibility. Unlike traditional systems that require specialized training, Veya's intuitive interface ensures that labs with varying levels of technical expertise can confidently adopt automation. This accessibility is particularly valuable for labs in diagnostics, where staff shortages and growing workloads create significant challenges.

Remote monitoring and the OneView™ display further enhance productivity by providing live, intelligent analytics into operational workflows. These tools minimize downtime and allow lab personnel to focus on higher-value tasks while reducing human error.

Consider a small diagnostics lab facing increasing demands with limited skilled personnel: implementing Veya enables the lab to scale its throughput, streamline workflows and meet rising demands efficiently. Predefined workflows speed up setup times and eliminate the need for scripting expertise, reducing the risk of human error. This allows the lab to deliver results faster while maintaining compliance and quality.

Early adopters are already leveraging Veya's potential in advanced multiomics research. For instance, Dr. Bogdan Budnik, a leading researcher and chair at a prominent proteomics organization, recently shared his enthusiasm about receiving the very first Veya instrument:

"We just received the very first Veya instrument from Tecan Switzerland, and I couldn't be happier! A huge thank you to the incredible team for setting it up in record time. Our plan is to utilize this cool new platform for a comprehensive multimodal workflow based on single cells. I'm eagerly anticipating the data we'll gather, especially with our first applications in proteomics."

Dr. Budnik's team plans to use Veya for comprehensive single-cell workflows in proteomics, metabolomics and lipidomics. Their work demonstrates Veya's scalability and versatility for cutting-edge research, highlighting how the system can support complex, high-resolution studies that have previously been challenging for smaller labs.

By simplifying workflows, increasing inclusivity, accessibility and enabling scalability, Veya reinforces Tecan's role in building an efficient, accessible healthcare ecosystem. Whether in diagnostics, research or clinical applications. Veya ensures that labs of all sizes can scale their operations without added complexity.

STRENGTHENING THE VALUE CHAIN.

Tecan empowers a wide range of diverse collaborations among scientists across the world, enabling them to solve complex challenges. Labs and institutions often need to work together remotely and across locations, but barriers such as poorly integrated systems, inconsistent workflows and inefficient data sharing can hinder progress.

Tecan's platforms and tools are designed to break down these silos and foster connectivity across the ecosystem. They simplify how institutions collaborate by integrating predefined workflows, enabling remote monitoring and supporting seamless data exchange. They empower labs to share protocols, results and insights efficiently, ensuring alignment across institutions.

By providing a common framework, Tecan facilitates collaboration in critical areas such as genomics, proteomics and cellomics. For today's researchers, whether you're working with a team in Boston or Singapore, it's seamless. Scaling up means connecting better, faster and across any distance.

Australia's largest pathology provider, Sullivan Nicolaides Pathology (SNP), adopted Tecan's Fluent® Automation Workstations, which are closely integrated with their laboratory information system (LIS). This setup allows multiple labs within their network to manage workflows centrally, ensuring consistency and enabling rapid data sharing across locations. By automating routine tasks and streamlining communication between sites, SNP can meet increasing demands without compromising on quality or speed.

Understanding how and when laboratory automation assets are being used is crucial to maximize productivity and enable effective resource planning in high throughput facilities. California's Ambry Genetics, a leader in clinical genomic testing, operates a large fleet of Tecan liquid handling platforms, and has worked closely with Tecan on the development of Introspect™, a cloud-based service that provides a comprehensive overview of precisely when and how laboratory automation systems are being used. Managing the lab's huge testing workload of several thousands of samples a day and ensuring that resources are used as effectively and efficiently as possible, is a major challenge. Introspect offers an intuitive user experience and employs advanced data science. It converts instrument and workflow data into actionable insights, maximizing the utilization, quality, and performance of instrument fleets. Introspect provides peace of mind through remote monitoring, boosting operator productivity with seamless connectivity and empower your decision-making with data-backed insights.

Connectivity of systems is also key, when something unexpected happens. Then every second counts. Tecan Remote digital services enable immediate and secure remote access to Tecan instruments, minimizing downtime and helping customers get back up and running faster.

Tecan's platforms go beyond automating individual lab tasks — they create a network of interconnected labs that share knowledge and resources, ensuring a collaborative approach to innovation. By standardizing workflows and enabling seamless communication, Tecan supports the next generation of diagnostics and research, where collaboration is no longer a challenge but an integral part of the process.

Explore further

Streamlining workflows for Australia's largest pathology provider https://www.tecan.com/tecan-journal/streamlining-workflows-for-australias-largest-pathology-provider

Real-time insights for better productivity https://www.tecan.com/tecan-journal/real-time-insights-for-better-productivity

SIMPLIFYING WORKFLOWS TO EMPOWER DIAGNOSTICS AT SCALE.

Diagnostics labs frequently face the challenge of processing growing volumes of samples while managing shortages of skilled personnel and complying with regulatory standards. Tecan's advanced automation tools help labs overcome these hurdles and scale up operations by streamlining workflows, reducing manual intervention and ensuring compliance with the highest regulatory standards and quality.

The adoption of ready-to-use workflow suites simplifies setup, reducing the need for skilled personnel and enabling faster deployment. Veya's connectivity, including the OneView™ display, enhances performance by providing real-time status updates on monitored parameters. Together with remote support, this empowers operators with the insights needed to make informed decisions, such as whether to intervene and what actions to take, minimizing downtime and delays during peak periods.

Several real-world success stories show how Tecan's integrated solutions – from hardware to consumables to reagents – work together to improve workflows and outcomes.

Hardware and digital integration

In the field of liquid biopsy, Tecan's Phase Separator, a module on the Fluent® workstation, has revolutionized plasma separation workflows for a large US reference lab.

This integration of hardware and digital technology enabled the lab to process over 200,000 blood tubes per year, more than doubling throughput while significantly reducing error rates close to zero while maintaining precision and reliability.

Applications in oncology, neurology and prenatal testing have particularly benefited from this innovation, helping labs handle increasing sample demands with ease.

Hardware and functional consumables – solutions that go beyond the system

At SYNLAB's toxicology lab, Tecan's Resolvex® technology, in combination with Tecan's functional consumables, delivered a solution that helped SYNLAB reach new heights of productivity.

By automating drug extraction workflows, this integrated approach not only saved time but also significantly increased throughput, reducing processing time for a 96-well plate from over four hours to just 25–35 minutes, and setup time to around one hour – about a quarter of the time required for manual workflows. This freed up several hours of staff time for higher-value tasks, significantly enhancing the lab's overall efficiency.

Reagents for targeted solutions

At Düzen Laboratory, Tecan's Steroid Panel LC-MS kit offered a complete solution, simplifying complex hormone testing. By combining advanced hardware with specialized reagents, the lab achieved greater accuracy and consistency across large sample batches, delivering reliable results even for challenging applications.

Collaborative platforms

The Sysmex PS-10 Platform, developed in collaboration with Tecan automated sample preparation for flow cytometry. This integration drastically reduced preparation times and freed up staff to focus on higher-value tasks, demonstrating how tailored hardware and workflows can elevate lab productivity.

These solutions highlight Tecan's role as a trusted partner in diagnostics, empowering labs to meet increasing demand without overextending resources. By integrating innovative tools, software, consumables and reagents, Tecan supports institutions in scaling operations, improving efficiency and consistently delivering reliable results.

Explore further

https://www.tecan.com/phase-separator

Automated drug extraction reduces solvent use, saves time and improves efficiency https://www.tecan.com/tecan-journal/automated-drug-extraction-reduces-solvent-use

Streamlined steroid testing for accurate diagnoses https://www.tecan.com/tecan-journal/streamlined-steroid-testing-for-accurate-diagnoses

Collaborating to alleviate flow cytometry bottlenecks and foster business growth https://www.tecan.com/tecan-journal/collaborating-to-alleviate-flow-cytometry-bottlenecks-and-foster-business-growth

ENABLING SEAMLESS INTEGRATION FOR TRANSFORMATIVE RESEARCH.

Modern research demands efficiency and precision, particularly in areas like multiomics studies where complex workflows require seamless integration. Tecan plays a key role in enabling labs to achieve a level of automated capability that neither of the players can achieve on their own.

One example of this connected approach comes from Illumina, a leader in DNA sequencing technologies. Illumina and Tecan have created a powerful solution using Soma-Logic's scan assay that combines genomic sequencing with high-throughput protein analysis to uncover deeper biological insights such as identifying protein biomarkers associated with early-stage disease progression or therapeutic response.

Recently, Illumina also announced a collaboration with UK Biobank and biopharma partners for a pilot proteomics program to analyze 50,000 samples, combining genomic and proteomic data to gain deeper biological insights. Tecan's automation tools and consumables are essential in optimizing these workflows, ensuring scalability and reproducibility while helping laboratories to manage the complexity of multiomics with ease.

Tecan's automation tools not only optimize workflows but also enhance the overall scalability and reproducibility of the assays. By providing automation, consumables and modular platforms, Tecan ensures workflows remain consistent and scalable, supporting research labs in tackling the complexity of multiomics without added pressure or workload.

Predefined workflows and digital tools simplify time-intensive processes, freeing up research teams from constant oversight. Instead of managing the challenges of manual interventions, scientists can trust Tecan to deliver reliable and high-throughput solutions.

By enabling projects like Illumina's collaboration with UK Biobank, Tecan demonstrates how its automation and scalability solutions empower labs to achieve groundbreaking discoveries that shape the future of life sciences. These collaborations reflect Tecan's commitment to strengthening research ecosystems and driving innovation across critical fields such as genomics and proteomics.

DELIVERING PRECISION FROM CONCEPT TO CARE.

The MedTech field is rapidly evolving, with innovations in surgical robotics, smart devices and precision tools transforming how care is delivered. Tecan's core capabilities – including robotics, optics, complex electronics, fluidics, regulatory expertise, systems integration and scalable high integrity manufacturing – are making a difference. They enable MedTech partners to bring scalable solutions to market, addressing critical challenges in healthcare delivery. From improving surgical precision to ensuring regulatory compliance, Tecan empowers its partners to innovate while reducing complexity.

One outstanding example is the Avive Connect AED, an automated external defibrillator designed to improve survival rates for sudden cardiac arrest. Developed by Avive Solutions, this compact, connected device streamlines emergency response by providing critical data and functionality.

"Sudden cardiac arrest is a leading cause of death in the United States, with an estimated 356,000 out-of-hospital events occurring each year," said Dr. Ryan McClure, co-founder of Avive Solutions. "Having access to an AED

within minutes is often the difference between life and death, and we are thrilled to partner with Tecan to ensure these devices are not only reliable but also accessible to those who need them most."

More than 4 million AEDs are currently in use in the United States — ready to make the difference between life or death in the event of sudden cardiac arrest. Tecan's team played a key role in manufacturing readiness and ensuring FDA Class III compliance, helping bring this life-saving solution to market. The AED's smart features, such as cellular and GPS connectivity, ensure actionable information reaches first responders and hospitals quickly helping to improve patient outcomes.

Tecan provides module and complete system manufacturing services, benefiting from the vertical integration of printed circuit board assembly (PCBA). Its proprietary vPoke digital manufacturing execution system optimizes test and production yields, achieving industry-leading delivery performance and quality metrics. These capabilities make Tecan an excellent fit for the stringent demands of applications such as surgical robotics. Tecan supports partners in both soft-tissue and orthopedic robotics, including control units, simulators and generators, ensuring precision and reliability in these critical growth areas for MedTech. Through its capabilities in precision engineering, high integrity manufacturing and regulatory expertise, Tecan addresses critical challenges in healthcare. Its partners' tools alleviate the deficit of surgical expertise, enable more outpatient interventions, and reduce hospital costs for care and rehabilitation. Whether enhancing robotic-assisted surgery and cardiovascular devices, or advancing renal care and blood management, Tecan remains a trusted partner in shaping the future of medical care.

Explore further

Shocked into action to prevent sudden cardiac arrest fatalities https://www.tecan.com/tecan-journal/shocked-into-action-to-prevent-sudden-cardiac-arrest-fatalities

LEVERAGING ARTIFICIAL INTELLIGENCE.

Imagine a future where groundbreaking therapies emerge faster, targeting diseases with precision once thought unattainable. At Tecan, we make that vision a reality by combining artificial intelligence (AI) with the power of wet-lab validation to create synergy that transforms the pharmaceutical research landscape.

AI-driven in-silico models redefine the speed and scope of drug discovery, predict molecular interactions, and uncover potential therapeutic targets. These digital innovations provide the foundation for high-throughput drug screening and focus research on the most promising candidates. Yet even the most sophisticated AI predictions require validation through wet-lab experiments. Lab automation delivers the reproducible, high-quality data that AI demands — data that manual processes simply cannot provide.

Tecan's advanced automation tools and consumables ensure these critical validations are performed efficiently, with precision and scalability. By integrating AI-driven predictions with empirical wet-lab testing, pharmaceutical innovators can streamline the drug discovery pathway. This dual approach reduces costly failures in later stages, accelerates development timelines, and unlocks deeper insights into complex biological pathways.

One example of this synergy is in the exploration of treatments for diseases with limited options, such as rare genetic disorders or advanced oncology. AI helps identify potential drug targets faster, while Tecan's automation solutions optimize the experimental workflows needed to confirm efficacy and relevance. The result is a more focused and reliable drug development process that minimizes risk while maximizing impact.

Advancing this integration is not just a technological leap – it's a commitment to better science. With Tecan's support, pharmaceutical researchers can ensure that every therapeutic candidate is backed by robust empirical evidence, propelling the industry toward faster, more reliable, and life-changing discoveries.

FORGING CONNECTIONS. SCALING HEALTHCARE INNOVATION GLOBALLY.

Across life sciences and healthcare, Tecan helps connect research and real-world applications. By providing labs, research institutions and MedTech partners with tailored solutions, Tecan supports collaboration and drives progress in diagnostics, medical technology, and pharmaceutical innovation.

Tecan's activities span the entire healthcare spectrum – from research to clinical applications. Our newly developed Veya lab automation platform helps small-to-mid-sized labs adopt automation, making advanced tools accessible to more users. Solutions like Fluent® – an automated workstation designed for higher throughput – improve workflows such as liquid biopsy by increasing reliability and throughput. This enables labs to handle growing demands without sacrificing quality, supporting critical applications from therapy selection to minimal residual disease (MRD) measurement, which plays a key role in monitoring patient outcomes and guiding further treatment decisions.

Tecan's expertise extends into Pharma AI, enhancing drug discovery and development through advanced data analysis and automation. These capabilities support personalized and precision medicine approaches, allowing for more targeted therapies that improve patient outcomes while reducing overall healthcare costs.

In diagnostics, Tecan contributes to the continuum of care, from acute diagnostics to preventive measures that help mitigate healthcare costs and enhance patient benefits. By facilitating earlier detection, therapy selection, and ongoing monitoring, Tecan supports healthcare providers in delivering tailored, effective treatments.

In the MedTech industry, Tecan's technical and regulatory expertise, coupled with high-integrity manufacturing, empowers partners to create life-saving devices. From modules for advanced surgical robots to defibrillators, Tecan provides the precision and regulatory knowledge needed to bring these innovations to market.

These examples highlight Tecan's commitment to helping labs and innovators succeed. By simplifying workflows, advancing new technologies, and ensuring compliance with strict standards, Tecan supports its customers in achieving better results for science and healthcare.

General outlook

Looking ahead, Tecan's role in the 'Threads of Life' continues to expand. By weaving connections between people, science, and solutions, Tecan remains dedicated to scaling healthcare innovation globally. These connections enable collaboration, accelerate discovery, and advance outcomes across the fields of life sciences and medicine – from research to the clinic, shaping the future of healthcare.

19	Letter to the Shareholders	140	Five-year consolidated data
23	Markets and strategy	141	Consolidated financial statements
40	Sustainability	193	Statutory Auditor's Report on the Consoli
100	Corporate Governance		dated Financial Statements
114	Compensation Report	197	Financial Statements of Tecan Group Ltd.
132	Statutory Auditor's Report on	205	Statutory Auditor's Report on the
	Compensation Report		Financial Statements
134	Financial Report 2024	208	The Tecan Share
135	Chief Financial Officer's Report	210	Global

2024 AT A GLANCE

KEY FIGURES

	2023	2024	in %
CHF million
Order Entry	1,028.1	903.6	-12.1%
Sales	1,074.4	934.3	-13.0%
Adjusted EBITDA	220.6	164.4	-25.5%
in % of sales	20.5%	17.6%
Net profit	132.1	67.7	-48.8%
Adjusted net profit	164.4	103.1	-37.3%
EPS (CHF)	10.34	5.30	-48.7%
Adjusted EPS (CHF)	12.88	8.08	-37.3%

FINANCIAL SUMMARY

SALES BY BUSINESS SEGMENTS

(in % of sales)

SALES BY REGIONS

(in % of sales)

Tecan Annual Report 2024 Letter to Shareholders

Tecan is navigating a challenging market environment marked by reduced spending in our target markets, leading to lower demand in both the Life Sciences Business and Partnering Business segments. These challenges have been compounded by general market weakness in China and specific customer-related factors. In response, we have implemented a comprehensive cost-reduction program and optimized our global operations to reinforce our leading position. The long-term trends in healthcare remain unchanged: from life science research to clinical applications, automation and innovation are crucial for scaling healthcare solutions in research, clinical diagnostics, and medtech. This is especially important amid rising healthcare costs, ultimately benefiting people worldwide. With our dedicated team, we are driving exciting innovations and look forward to launching promising new products across both businesses, positioning us well to capitalize on market recovery as conditions improve.

FINANCIAL RESULTS FULL-YEAR AND SECOND HALF OF 2024

2024 decreased by 13.0% in Swiss francs, totaling CHF 934.3 million (2023: CHF 1,074.4 million). In local currencies, sales were 11.5% below the prior-year period, aligning with the revised sales outlook from October 2024, which anticipated a decline of 12-14%. Sales in the second half decreased by 12.3% in Swiss francs and by 11.3% in local currencies compared to the prior-year period. These sales results were previously communicated in a trading statement on January 8, 2025.

¹ The adjusted operating profit before depreciation and amortization excludes restructuring costs as well as acquisition- and integration-related costs (+CHF 16.4 million).

Adjusted EBITDA1 (operating profit before depreciation and amortization) was CHF 164.4 million, down from CHF 220.6 million in 2023. The adjusted EBITDA margin decreased to 17.6% of sales (2023: 20.5%), aligning with the revised margin outlook of 16-18%. The decline was primarily due to lower sales volumes, as profitability is highly volume-dependent. However, profitability was supported by a comprehensive cost-reduction program. Additionally, exchange rate movements in major currencies against the Swiss franc negatively impacted the margin by approximately 40 basis points.

Adjusted net profit2 was CHF 103.1 million, down from CHF 164.4 million in 2023, when earnings were significantly boosted by a one-time positive effect related to transitional measures from the Swiss tax reform. Adjusted earnings per share were CHF 8.08, compared to CHF 12.88 in 2023.

Cash flow from operating activities was CHF 148.5 million, compared to CHF 160.6 million in 2023. Cash conversion improved to 100.0% of reported EBITDA (2023: 77.5%). Thanks to solid cash flow management, Tecan's net liquidity position (cash and cash equivalents plus short-term time deposits, less bank liabilities, loans, and the outstanding bond) increased to CHF 153.7 million as of December 31, 2024, up from CHF 112.6 million on December 31, 2023.

Details on the course of business of the Life Sciences Business and Partnering Business segments and regarding the regional development of sales are discussed in the Chief Financial Officer's Report on page 135.

HIGHLIGHTS 2024

ENHANCING OPERATIONAL RESILIENCE THROUGH COST-REDUCTION INITIATIVES, WHILE EXPANDING GLOBAL OPERATIONS AND COMMERCIAL REACH

In 2024, Tecan enhanced its operational resilience by implementing a comprehensive cost-reduction program and continuing to optimize its global organizational footprint. Following the successful transfer of Cavro component production to facilities in Morgan Hill, California, and Penang, Malaysia, and the closure of the San Jose site in 2023, Tecan relocated its genomic reagents site from Redwood City to the expanding Morgan Hill hub at the end of 2024. In Penang, Tecan successfully passed an extensive FDA inspection, laying a strong foundation for future production of medical devices, including class 3 devices. The first medical device production was successfully transitioned to Penang in 2024. Alongside site consolidation, Tecan focused on supply chain optimization and increased vertical integration of manufacturing to leverage the Group's full capabilities and realize cost synergies.

On the commercial front, Tecan established a direct sales office in South Korea in 2024 by acquiring a long-standing distributor in the region. This new entity includes team members with over 20 years of experience working with Tecan, bringing valuable local market knowledge to better serve this growing market.

INNOVATION AND PRODUCT LAUNCHES IN THE LIFE SCIENCES BUSINESS

In 2024, Tecan advanced its product portfolio with significant launches in genomics, proteomics, and cell biology. Examples include the Resolvex i300 module, introduced in February, which enhances throughput in proteomics by integrating with the Fluent® platform, and the Spark Cyto 3D, which supports drug discovery by enabling the analysis of complex 3D cell models. During a Capital Markets Day in October 2024, Tecan previewed Veya, a multiomics liquid handling workstation that simplifies lab automation and boosts productivity. Officially launched at the Society for Laboratory Automation and Screening (SLAS) international conference in San Diego, USA, in January 2025, Veya provides effortless automation by overcoming key barriers in lab automation.

Tecan also expanded its digital ecosystem with the new Introspect analytics platform, enhancing operational insights and service efficiency. This digital expansion benefits customers across both business segments.

NEW LAUNCHES AND RICH PROJECT PIPELINE IN THE PARTNERING BUSINESS

At the 2024 Capital Markets Day, Tecan highlighted its strong Partnering Business relationships and robust project pipeline across its three business lines: Synergence™, Cavro®, and Paramit. Examples include Tecan's collaboration with Illumina in the Synergence line, supporting their expansion into multiomics with the development of a new system. Through Paramit, Tecan assisted THINK® Surgical with the design transfer and initiated the manufacturing of their TMINI® miniature robotic system, cart, and smart cell charging station. Additionally, Paramit is manufacturing the Avive Connect AED, an innovative and user-friendly automated external defibrillator aimed at improving survival rates for sudden cardiac arrest.

² The calculation of 2024 adjusted net profit and adjusted earnings per share excludes restructuring costs as well as acquisition- and integration-related costs (+CHF 16.4 million) and accumulated amortization of acquired intangible assets (+CHF 19.0 million) and they were calculated with the reported Group tax rate of 13.6%.

The pipeline of new development projects has been further enriched through joint selling of Synergence, Cavro, and Paramit services, targeting key customers in the life sciences, lab diagnostics, and medtech segments. Tecan aims to double new project signings by 2027 through joint selling efforts, a targeted approach, and strategic account management.

FURTHER BUILDING ON SUSTAINABILITY ACTIVITIES

Tecan's 2024 Sustainability Report, published as part of the Annual Report, includes a Climate Risk Scenarios Analysis, highlighting the Company's proactive approach to addressing transition and physical risks related to climate change. In preparation for the EU Corporate Sustainability Reporting Directive (CSRD), Tecan has integrated related data management into its Finance function. For the first time, Tecan's financial auditors conducted a limited assurance audit of key 2024 environmental and social data points. Further progress was made towards greenhouse gas emissions reduction commitments, with renewable sources accounting for 87% of all electricity purchased. In 2025, Tecan will continue its pragmatic approach to managing risks and opportunities associated with the Company's material topics.

The 2024 Sustainability Report can be found starting on page 40.

PROPOSAL FOR A STABLE DIVIDEND AT THE ANNUAL GENERAL MEETING

Based on the solid cash flow for the full year 2024 and on the basis of an ongoing positive business outlook, the Board of Directors will propose at the Company's Annual General Meeting on April 10, 2025, an unchanged dividend of CHF 3.00 per share. Half of the dividend, i.e., CHF 1.50, will again be paid out from the available capital contribution reserve and is therefore not subject to withholding tax.

OUTLOOK

The overall market environment is showing first signs of stabilization after a significant decline in demand last year, with further improvements expected over the course of 2025. However, new political uncertainties have emerged, including the announced reductions to the National Institutes of Health (NIH) research budget in the US, which could further impact demand for life science research instruments. For 2025, Tecan anticipates that the year will begin with continued softer market conditions, with potential improvement as the year progresses. Depending on the extent of this improvement in the second half, the market could turn slightly positive for the full year, driven by specific growth segments, such as the clinical diagnostics market.

Acknowledging the current market conditions, Tecan has initiated its short-term financial outlook for 2025, with a full-year guidance range from a low single-digit decline to low single-digit growth in sales in local currencies. The company expects sales in local currencies to decline in the first half, with a softer first quarter and a sequential improvement in the second quarter. A more positive outlook for the second half is supported by a strong reception of newly launched products and partnerships in both divisions, along with additional launches in 2025.

In 2024, Tecan demonstrated its commitment to agile cost management amid evolving economic conditions and revenue trends by implementing a comprehensive cost-reduction program and optimizing its global organizational footprint. These efforts are designed to protect profitability without limiting the company's growth potential. As a result, Tecan forecasts an adjusted EBITDA margin, excluding restructuring, acquisition- and integration-related costs, of 17.5-18.5% of sales.

The outlook 2025 does not take account of potential acquisitions during the course of the year.

The expectations regarding profitability are based on an average exchange rate forecast for full year 2025 of one euro equaling CHF 0.95 and one US dollar equaling CHF 0.90.

Tecan also reiterated its mid-term outlook, in which the Company anticipates returning to average organic growth rates in the mid to high single-digit percentage range in local currencies under normal market conditions, while continuously improving profitability.

Tecan Annual Report 2024 Letter to Shareholders

EXPRESSION OF THANKS

On behalf of the Board of Directors and the Management Board, we thank everyone at Tecan for their continued efforts and resilience in these more challenging times, and we recognize and appreciate the adaptability and resolve of our outstanding teams. We would also like to extend our appreciation to our customers and shareholders for their continued trust and support as we navigate Tecan through the year ahead.

Männedorf, March 7, 2025

Dr. Lukas Braunschweiler

Chairman of the Board

Dr. Achim von Leoprechting

Chief Executive Officer

MARKETS AND STRATEGY

Tecan is a pioneer and market leader in laboratory automation and a healthcare enabler. The company is improving people's lives and health by empowering customers to scale healthcare innovation globally. Tecan enables customers to scale their innovation, whether in laboratory workflows for life science research, various applied markets and diagnostics or in product development and manufacturing for the medical market. Tecan delivers this broad range of healthcare products and services, directly to end users or with OEM partners.

Tecan Annual Report 2024 Markets and strategy

BUSINESS SEGMENTS & MARKETS

We live in the century of biology, where an explosion of scientific knowledge is revolutionizing the possibilities for healthcare. New diagnostic tests and medical treatments, including precision and preventative medicine, are being developed to combat cancer, rare and hereditary diseases, metabolic and neurodegenerative disorders, and other significant health challenges.

At the same time, the modern world is facing multiple challenges. A growing and rapidly aging population, and an increasing prevalence of complex disease like cancer, not to mention the persistence of infectious disease. A shortage of skilled labor compounds the pressure on already strained healthcare systems, which further limits the accessibility of healthcare innovations to the broad, global population.

With its expertise, Tecan has the opportunity to accelerate the evolution of research applications and to scale healthcare innovation for the broader, global population.

Tecan empowers customers in academia, biotech and pharma, clinical diagnostics and the medical market, enabling them to understand the biology of diseases and translate research insights into compliant, scalable solutions that improve people's lives and health.

TECAN'S PURPOSE: IMPROVING THE LIVES AND HEALTH OF PEOPLE

We are driven to improve people's lives and health. We do this by empowering our customers to scale healthcare innovation globally.

From research… to the clinic.

Tecan Annual Report 2024 Markets and strategy

For laboratories, Tecan's solutions automate all types of repetitive work steps and make procedures more precise, more efficient and safer. These steps include many preanalytical steps and sample logistics, as well as the various sample preparation steps in numerous application areas.

They pipette the smallest volumes of different fluids with optimum precision, for example. By automating these work steps, laboratories can significantly scale up the volume of samples they process, obtain test results sooner and ensure reproducible output. It is only through automation that complex biological work processes become robust and human error sources are eliminated. The instruments can also perform necessary work overnight without supervision, allowing laboratory personnel to evaluate the results or continue with the next steps upon returning the following morning. Tecan also offers a wide range of own detection devices. This includes analytical devices such as microplate readers, which analyze reactions on a microtiter plate. For selected applications, Tecan also increasingly offers integrated total solutions, including appropriate reagents and functional consumables.

Through the Partnering Business, Tecan helps the world's largest in-vitro diagnostics and medical device companies to develop and bring to market progressive healthcare solutions that can revolutionize the diagnosis and treatment of critical diseases. These solutions include automated "sample-to-result" clinical diagnostic systems, pointof-care instruments, wearable technologies and medical devices. Partners bring these solutions to market under their own brand names. Tecan also works with life science companies developing and manufacturing high-precision instrumentation, including a range of products for genomics, proteomics and cell-analysis.

SCALING LABORATORY WORKFLOWS – EMPOWERED BY AUTOMATION AND DIGITAL SOLUTIONS

Significant advantages in productivity, robustness and reproducibility of processes

Sources: Bureau of Labor Statistics (BLS), American Association for Clinical Chemistry (AACC), Association of Biomolecular Resource Facilities (ABRF) Sources: Bureau of Labor Statistics (BLS), American Association for Clinical Chemistry (AACC), Association of Biomolecular Resource Facilities (ABRF)

As scientific discoveries accelerate, scientists and healthcare professionals struggle to scale manually performed experiments while ensuring reproducibility and robustness of data. At the same time, the underlying biology and respective workflows are becoming ever more complex and prone to human error. This bottleneck limits their ability to generate breakthrough insights that could be translated into practical clinical applications.

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UNIQUE POSITION WITH TWO STRONG PILLARS

The Company serves some customers directly, but is also a leader in developing and manufacturing OEM instruments, components and modules that are distributed by partner companies. These are for example diagnostics companies that market the products under their own names as total solutions together with the relevant test kits.

These two segments, the Life Sciences Business (end-customer business) and Partnering Business (OEM business) complement each other and achieve a position that is unique in such depth on the market. Tecan can offer the complete spectrum for different customer groups, from benchtop devices for basic research to sample-to-result solutions for in-vitro diagnostics companies to modules and systems for surgical robotics and personal testing devices for medical technology companies. This puts Tecan in a unique position to combine insights from basic research with the requirements for solutions for routine clinical use.

TECAN'S SYNERGISTIC BUSINESS DIVISIONS

LIFE SCIENCES BUSINESS

(Tecan-branded end-customer business)

ACCELERATING RESEARCH. SCALING CLINICAL IMPACT.

PARTNERING BUSINESS

(Healthcare OEM business)

ONE TRUSTED HEALTHCARE OEM PARTNER. PROVEN EXPERTISE.

INSTRUMENTS Automating everything from simple manual actions to high throughput workflows

SynergenceTM Customized OEM systems

Life science and lab diagnostics
Concept to serial production
Life cycle management incl. consumables and services

Cavro® Standard and customized OEM components

Life science and lab diagnostics
Highest quality and precision
Expert global support

Paramit® Contract manufacturing

MedTech, life science, lab diagnostics
Unconstrained capacity (vPoke)
Leading reliability & traceability

The life science research area is highly innovative and is where most new technologies are developed and initially employed as a matter of routine. Traditionally Tecan has a strong position in life science research thanks to its own end-customer business, covering a broad range of applications with modular and configurable instrument platforms.

Many of these technologies here also have great potential for diagnostic application. In the last few years, for example, next-generation sequencing has proved to be of great benefit, such as in identifying inheritable diseases, in cancer diagnostics or in non-invasive prenatal diagnostics.

New types of tests are normally carried out after an initial transition to diagnostic application, at first in large or special laboratories. As demand rises and the processing of many samples is centralized in a small number of locations, automation solutions are mostly required to scale up throughput. As in life science research, most individual work steps of a workflow are separately optimized and carried out in succession. As lab developed tests, the test procedures are internally developed and validated by the laboratories in this regulated market segment. The application is scaled and industrialized. Tecan has already gained significant experience in new types of technologies and can now make this available to clinical testing laboratories. Through its Life Sciences Business, Tecan often has application-specific platforms that are approved for use in the regulated area. For example, the Fluent Gx platform variant has been successfully registered as a Class I medical device in the US. Its specific functionalities facilitate greater process security, traceability of samples and stricter user management.

For further transition to routine clinical application, as a technology becomes increasingly mature, demand from decentralized clinical laboratories for the new types of test

TECAN'S UNIQUE POSITION TO SCALE SEAMLESSLY FROM RESEARCH TO THE CLINIC

TECAN'S UNIQUE POSITION TO SCALE SEAMLESSLY FROM RESEARCH TO THE CLINIC Two synergistic business segments are leveraging common hard- and software platforms

Example: DreamPrep® NGS Compact

LIFE SCIENCE RESEARCH

› Scaling key workflows in genomics, proteomics and cell & tissue analysis

LAB DEVELOPED TESTS (LDT)

› Scaling workflows to an industrial level with large fleets of automation platforms

Example: Fluent Gx Example: Concept of a sample-to-answer solution

IN-VITRO DIAGNOSTICS

› Scaling clinical workflows for clinical labs and hospitals to global IVD companies
› Partners are legal manufacturers of system solutions, including instruments and reagents

Life Science Business Partnering Business

Life Sciences Business Partnering Business

procedures also rises, such as in hospitals. These laboratories typically have other requirements for a total solution: The tests should be developed by a diagnostics company as ready-made reagent kits and the licensing authorities should have granted market authorization. Furthermore, the dedicated automation platform designed for a specific functionality should be very easy to use and all work steps necessary for carrying out the test are ideally covered in one instrument (sample in, result out).

For companies in the in-vitro diagnostics sector, Tecan is a preferred partner for these automation systems through the Partnering Business. For example, Fluent Gx can be adapted for a partner company's specific test and workflow. A diagnostics company can benefit from Tecan's expertise and platform availability, leading to cost-efficient development and quicker market entry. Based on this strategic orientation, collaboration with different partners enables Tecan in turn to benefit from the growth potential in a range of different types of technologies and tests for numerous therapeutic areas and other special parameters.

Despite different requirements, the fundamental technologies are very similar for the automation of work steps compared to previous solutions. By choosing to partner with Tecan as OEM customers, diagnostics companies get access to all the Company's previously developed technologies and platforms, all modules and software solutions as well as its expertise in system integration and regulatory and quality-related processes.

At the moment, different technologies are in a transition phase towards increased deployment in in-vitro diagnostics, such as next-generation sequencing (NGS), mass spectrometry or the use of liquid biopsies, such as for cancer diagnostics.

In 2021, Tecan expanded into the medical mechatronics sub-segment of MedTech. This adjacent market intersects with life science and diagnostic technologies, offering potential for synergies and manufacturing efficiencies. These synergies extend across Tecan's Life Sciences and Partnering Business segments, as well as within the Partnering Business segment itself, enhancing our ability to deliver innovative healthcare solutions. Tecan is leveraging its core capabilities — including robotics, optics, complex electronics, fluidics, regulatory expertise, systems integration, and scalable high-integrity manufacturing — to capitalize on these opportunities.

TECAN IS ACTIVE IN A CHF 100 BILLION MARKETPLACE

STRONG MARKET FUNDAMENTALS PROVIDE SOLID FOUNDATION FOR GROWTH Strong market fundamentals provide solid foundation for growth

MARKET DEVELOPMENT AND STRUCTURE AS THE BASIS FOR CORPORATE STRATEGY

Traditionally, Tecan's two main markets were life science research and diagnostics. The acquisition of Paramit Corporation in 2021 further extended Tecan's position in solutions for life sciences and in-vitro diagnostics (IVD). It also added a new business vertical in the attractive and fast-growing market for medical devices. The structure of these end markets plus the focus on the core applications of genomics, protein analysis and cell analysis form the basis of the corporate strategy. It follows three vectors to ensure sustainable profitable growth. The Paramit acquisition added a vector 4 and 5.

MARKET, CHF ADDRESSABLE MID-TERM CAGR

Research and development as well as the Operations division are organized across the Group in order to better leverage synergies through various locations.

LIFE SCIENCE RESEARCH

The addressable market for Tecan in life science research is valued at around USD 5 billion and is growing at an annual rate of 3% to 5%. Some two-thirds of sales come from instruments and about a third from reagents. Tecan's modular automation platforms, detection devices, reagents, consumables and digitalization solutions enable experimentation at scale, supporting academic research, pharma and biotech. These products and services make laboratory workflows robust, reproducible and precise.

Laboratory automation, a field in which Tecan is active in mainly with the Life Sciences Business, is an important market segment within life science research. Around 60% of the Life Sciences Business segment revenues are generated in life science research. Looking at the product groups, the Liquid 1

Handling & Robotics category generates over USD 1.6 billion of the total revenue in this market segment with the initial systems, with approximately threequarters of this revenue coming from automated liquid handling systems and robotics.

It also represents the largest product area for instruments at Tecan. Through the Partnering Business, Tecan also supplies other vendors in this market with off-the-shelf or custom components and platforms for life science instruments.

The market for Tecan-branded detection instruments, another sub-segment of lab automation, accounts for more than USD 0.6 billion.

Tecan is also focused on establishing additional pillars in the instrument market for life science research, aiming to expand its addressable market. For its Life Sciences Business, this applies in particular to areas beyond conventional, open and flexible robotics solutions for liquid handling and microplate readers. There are plenty of opportunities here, especially in dedicated instruments for sample preparation, e.g. the sample processing for mass spectrometry. This growth pillar also includes the newly introduced innovative entry level solutions for next-generation sequencing (NGS) library preparation, MagicPrep NGS. MagicPrep NGS is an automated benchtop library preparation system that transforms time-consuming and error-prone procedures into a simple, robust experience with a setup time of only 10 minutes.

SCALING LIFE SCIENCE RESEARCH INNOVATION

Leading provider of lab automation and OEM solutions for key applications

In addition, Tecan participates in the aftermarket of the laboratory automation segment with consumables, service and spare parts. The market for consumables like pipette tips and other related products accounts for USD 1.2 billion in addition to the initial systems. The service share is worth another USD 1.6 billion.

Tecan has also expanded its offering of dedicated reagents. For example, the company provides innovative genomic sample preparation for NGS and microarrays for a broad range of sample types including RNA and DNA from whole tissues, preserved and prepared tissue samples, single cells and liquid biopsies such as from blood samples.

Tecan also added new capabilities in its Partnering Business to further strengthen the customer offering for life sciences research through contract development and manufacturing — illustrated by vector 4. Engineering as well as cost-competitive manufacturing capabilities open up new opportunities for a whole variety of benchtop size life science research instruments. These could be systems for genome mapping and sequencing, molecular antibody characterization, multiplex biomarker detection, single-cell imaging, multiplex gene expression analysis and many more areas. In total, about 20% of the Partnering Business segment revenues are generated in life science research.

IN-VITRO DIAGNOSTICS

The total addressable market for Tecan in in-vitro diagnostics is valued at around USD 5 billion and is comparable to the life science research market in terms of the average annual growth rate. Tecan supports clinical diagnostics labs doing translational research to convert scientific discoveries into validated lab-developed diagnostic tests (LDT). The company's expertise in the development of reagents, automation and software enhances the efficiency, accuracy and traceability of their procedures, while its knowledge of quality and regulatory affairs ensures compliance, easing the transition of applications from research to the clinical environment. Tecan empowers these customers with both Tecan-branded and OEM solutions.

The market structure in general is dominated by the share of sales generated by diagnostics companies through the sale of reagents and consumables. These recurring sales make up about 80% of the market volume, while the remaining 20% of sales are generated with instruments.

The instruments in the in-vitro diagnostics market are only partly developed and produced by the diagnostics companies themselves, with an increasing share being outsourced to specialists such as Tecan. In this sub-sector of the market segment, which has a value of about USD 3.5 billion, Tecan supplies diagnostics companies with automation solutions through its Partnering Business segment. Customers then market these instruments under their own names, combined with their own reagents as a total solution,

such as hospitals, major diagnostics laboratories and blood banks. Tecan also provides components, product and system development, as well as design and manufacturing services to accelerate time-to-market for breakthrough innovations that enable new sample-to-answer workflows. Lab diagnostics is accounting for around 30% of segment sales in the Partnering Business.

In its Life Sciences Business segment, Tecan sells open automation platforms, mainly to major diagnostics and genetic testing laboratories. Overall, slightly more than one third of sales in the Life Sciences Business are generated in regulated markets such as clinical diagnostics.

For example, the Fluent Gx platform variant was developed for the automation of laboratory workflows in regulated markets. Here Fluent can be used for applications such as high throughput nucleic acid purification, quantification and normalization or as a scalable solution for PCR amplification. In the US, it is registered as a Class I medical device.

Tecan also offers detection devices that are used for absorbance-, fluorescence- and luminescence-based clinical immuno-assays.

4 Tecan expanded the total addressable market for diagnostic instruments with capabilities around smaller near-patient or point-of-care testing devices. These are for example systems for performance capillary electrophoresis (HPCE), flowthrough hybridization, molecular diagnostics and digital pathology.
3 Also in this market, Tecan participates in the aftermarket with reagents for specialty diagnostics, functional consumables for mass spectrometry, and again consumables like pipette tips. As in-vitro diagnostics is a highly regulated market, the consumables become part of the overall validated solution.

ELISA technology is such an example of a popular application, which is used to determine specialty diagnostic parameters, such as evidence of rare infectious diseases or to verify certain hormone levels. In this specialty diagnostics area, Tecan is offering a portfolio of test kits as well as dedicated automation platforms.

SCALING DIAGNOSTIC WORKFLOWS

Leading provider from components, point-of-care to fully integrated clinical analyzers Scaling Diagnostic Workflows

MEDICAL DEVICES (MEDICAL MECHATRONICS)

The addressable market of medical mechatronics products represents a significant opportunity of around USD 14 billion, thereby more than doubling Tecan's original total addressable market through the acquisition of Paramit Corporation in 2021. Tecan provides contract design, development and manufacturing services for a broad set of medical devices. Similar to diagnostics, Tecan also helps OEM customers in MedTech overcome specific challenges, and can even take on entire projects, from design through to manufacturing. There are numerous similarities and synergies among life science research, clinical practice, and the medical field. Medical mechatronics is an adjacent market that intersects with life science and diagnostic technologies, offering potential for synergies and manufacturing efficiencies.

Approximately one third of sales in the Partnering Business segment are now generated in the medical mechatronics end market.

With new capabilities and a broad customer portfolio, Tecan has opened up a completely new business and growth area with the medical market. The targeted medical mechatronics sub-segment is part of the broader medical device market and consists of

instruments and mechanical and robotic modules that are controlled by custom electronics.

The product portfolio includes components, modules and systems, based on robotic, microfluidics, optical, laser and radio frequency technologies for key applications, leveraging technical and regulatory core competences that are very similar to life science research and diagnostics. The projects Tecan targets focus on products of medium to high complexity and low to medium unit volume, aligning with high expectations for delivery, reliability, and quality. Products include sub-modules for robotic surgery systems, energy based devices and platforms, cardio-vascular controllers, portable defibrillators, home hemodialysis systems, patient monitoring and tele-medicine devices, products that range from hand-held devices to larger cart-based systems.

In research and development, the team is also very conversant with the ways energy can be delivered to human tissue, and its effects on the body, for example to reduce scar tissue or applying it in a variety of different surgical applications.

SCALING MEDICAL INNOVATION THROUGH PARTNERSHIPS

Leveraging same or similar technical, manufacturing and regulatory competences

SPECIAL FOCUS ON THREE APPLICATION AREAS

Tecan covers a large number of different application areas thanks to its two segments of Life Sciences Business and Partnering Business. Special focus is placed on four applications to achieve continued growth that outstrips the market average. Particularly strong growth drivers form the basis of them:

1. Genomics
1. Protein analysis, particularly workflows of mass spectrometry
1. Cell and tissue analysis
1. Medical mechatronics

The first three applications are generally used across life science research as well as in in-vitro diagnostics. As screenings of genomic, proteomic, cellular and tissue assays have grown in sensitivity, breadth and sophistication, so have Tecan's underlying technology portfolio and product lines. A rationale driving researchers and clinical partners towards Tecan is its overarching integration of modular hardware and software building blocks across a variety of end applications. The company has pioneered the development and deployment of sophisticated architectures and libraries that can be configured rapidly and optimized for specific use cases.

Medical mechatronics is an adjacent market that intersects with life science and diagnostic technologies and products share many commonalities from a high content of robotic technologies and custom electronics to the regulated nature of the end market.

The modular hardware and software building blocks, product commonalities as well as the company's regulatory and operational expertise allows Tecan to help customers translate research insights into compliant clinical solutions and at the same time serve a diverse set of customers in a variety of end applications. This position puts Tecan in the center of dynamic healthcare ecosystems.

WE EMPOWER CUSTOMERS, FROM RESEARCH TO THE CLINIC

Tecan in the center of dynamic healthcare ecosystems

GENOMICS

Genomics is the systematic analysis of the genome, e.g. a cell, tissue, organ or complete organism. A genome is the complete DNA sequence of an organism, including all its genes. Genomics is a fundamental application in life science research and is increasingly used in diagnostics.

Since 2020, polymerase chain reaction (PCR) became one of the most powerful weapons in the fight against the coronavirus pandemic. It provides a fast, specific and very sensitive way to detect invading pathogens, even when they are present in extremely low numbers.

The whole genomics market has grown to around USD 17 billion. The addressable market in genomics for Tecan is approximately USD 4 billion. On average, this application segment is expected to grow at a mid single-digit rate in the mid-term. However, some sub-segments, such as next-generation sequencing (NGS), are developing at a faster pace, with growth rates ranging from high single-digits to low double-digits. These sub-segments, valued at around USD 600 million, are key focus areas for Tecan.

FOCUS ON HIGHER GROWTH SEGMENTS IN GENOMICS

We are integral to the liquid biopsy ecosystem FOCUS ON HIGHER GROWTH SEGMENTS IN GENOMICS

GENOMICS

17 bn 4 bn MARKET, USD ADDRESSABLE

MSD MID-TERM CAGR

NGS, liquid biopsies, gene editing HSD-LDD HIGHER CAGR APPLICATIONS (EXAMPLES)

MARKET TRENDS

› NGS expands in clinical settings to diagnose patients
› NIPT; transplantations; cancer therapy selection, disease monitoring, MRD and prevention screening of broader populations drive double-digit growth
› NGS long- and short-read technologies with growing adoption in research, pharma, clinical and disease control environments

TECAN'S ROLE

› Scale liquid biopsy workflows for genetic testing labs, e.g., large-volume nucleic acid extraction
› Empower NGS and PCR workflows on low-, mid- and high-throughput automation platforms complemented with consumables and reagents
› Lead with continuous innovation through digital technologies
› Leverage both divisions to facilitate adoption in research, LDT and Dx settings for all long- and short-read NGS systems

NIPT = non-invasive pre-natal testing, MRD = minimal residual disease testing PCR = polymerase chain reaction, LDT = lab developed test.

NGS workflows are composed of multiple complex steps, most of which need to be performed prior to loading samples in the actual sequencer. The crucial step prior to sequencing is library preparation, which is a particularly attractive market segment and a focus of Tecan's area of work. There are also growing needs in handling small volume samples and preparing libraries, especially when derived from challenging clinical samples. But even with other work steps of the various genomics workflows, starting with the basic step of DNA extraction, Tecan is well positioned.

Also, genomic needs in precision and personalized medicine, companion diagnostics, fast and sensitive multiplexed assays are a big growth driver. Increasingly, NGS for example is used for liquid biopsies to detect minimal residual disease in patients, monitor cancer recurrence, or their response to a specific treatment, simply by checking for tumor DNA (cfDNA) in the patients' blood.

PROTEIN ANALYSIS

All proteins in an organism, tissue or cell are called proteomes. Unlike with the genome, the composition of a proteome changes all the time. These changes are crucially affected by the environment and diseases, but also by drugs, for example. In order to research and analyze proteins, a range of techniques is available, notably mass spectrometry. The innovations that yield insights into the human proteome are still at an earlier stage but they are following in the footsteps of genomics.

The proteomics market is valued at approximately USD 20 billion, with USD 3 billion being addressable by Tecan through its current product offerings. On average, this application segment is also expected to grow at a mid single-digit rate in the mid-term. Similar to genomics, Tecan is targeting sub-segments within proteomics that exhibit higher growth rates in the high single-digit range, focusing on a segment valued at around USD 900 million. The sub-segment of sample preparation for mass spectrometry is particularly attractive for Tecan. The key growth driver here is the increasing number of biopharmaceuticals, a class of compounds produced using biotechnology resources and genetically modified organisms. Analyses based on mass spectrometry are also increasingly applied in in-vitro diagnostics in addition to their traditional use in life science research. For example, Tecan is enabling to prepare MALDI slides with high precision and sensitivity in an innovative approach to diagnose multiple myeloma at an earlier point in the disease.

The ability to extract insights from mass spectrometry rests on the ability to purify samples, separating them from background noise. Tecan is also well positioned for other analysis methods, such as immunoassays or other common work steps, such as protein purification.

In more and more cases it is becoming increasingly important to combine genomic test information with other profiling assays, such as protein expression in integrated solutions.

FOCUS ON HIGH GROWTH SEGMENTS IN PROTEOMICS

We are enabling mass spec sample prep and spatial biology FOCUS ON HIGH GROWTH SEGMENTS IN PROTEOMICS

PROTEOMICS

20 bn 3 bn MARKET, USD ADDRESSABLE

MSD MID-TERM CAGR

HIGHER CAGR APPLICATIONS (EXAMPLES)

Mass spec, AI protein design, spatial proteomics HSD

MARKET TRENDS

› Mass spectrometry-based proteomics drives biomarker discovery, drug development and personalized medicine applications
› AI-based protein design accelerates more accurate protein structure prediction, drug discovery and simplifies enzyme engineering
› Spatial proteomics improves understanding of protein localization, interactions and tissue-specific protein expression in disease states

TECAN'S ROLE

› Provide market-leading instruments for mass spec sample preparation (from semi-manual to fully integrated)
› Offer extraction consumables for clinical and biopharma applications, including proprietary designs
› Develop and manufacture systems for OEM partners e.g. in blood cancer diagnostics, metabolomics and spatial biology
› Partner with innovation leaders in AI protein design in research and pharma

CELL AND TISSUE ANALYSIS 9

Cells are independent biological functional units and the starting point for many studies. Biological processes can be understood and clarified at cellular level thanks to cell analysis. Researchers offer trials a more realistic model with cells or groups of cells, even so-called organoids, for transferring findings on organisms. For example, cell assays are increasingly used to develop new targeted drugs.

The overall cell and tissue analysis market is estimated to be around USD 28 billion, with an average growth rate in the mid single-digit percent range. Tecan's addressable portion of this market is valued at approximately USD 3 billion. Tecan's focus on higher-growth areas represents about 10%, or USD 300 million, of the overall market, with these segments growing at average rates in the high single-digits.

In cell analysis, Tecan offers innovative detection and imaging solutions, but also a broad portfolio of automation solutions for different work steps. Cell lines and primary cells are widely used for the production of cell-derived biomolecules, as well as for cell-based assays. For example, Tecan provides sophisticated, modular automation solutions from 2D and 3D cell cultures with cloning, transfection and colony picking to the point of cell-based assays and cellular analysis. In 2023, Tecan launched the Uno Single Cell Dispenser™, a compact, automated benchtop instrument that delivers single cell isolation and reagent dispensing in one system.

Through its Partnering Business, Tecan also supplies leading diagnostics companies in the areas of tissue analysis for cancer diagnostics, flow cytometry and other applications.

HIGHER GROWTH SEGMENTS IN CELL & TISSUE

We are driving progress in 3D and single-cell workflows HIGHER GROWTH SEGMENTS IN CELL & TISSUE

CELL & TISSUE

28 bn 3 bn MSD MARKET, USD ADDRESSABLE MID-TERM CAGR

HIGHER CAGR APPLICATIONS (EXAMPLES)

Single-cell, cell therapy, 3D cell models, tissue engineering HSD

MARKET TRENDS

› Cell therapy is growing significantly with CAR-T and stem cell-based treatments for cancer, autoimmune disorders and regenerative medicine
› 3D cell and single-cell models are growing in drug discovery and disease modeling, aims at reducing drug candidate attrition in clinical testing
› Tissue engineering is growing with applications in wound healing, orthopedics and the development of bioengineered tissues and organs

TECAN'S ROLE

› Enable specialized 3D cell workflows with dedicated modules, custom configurations for handling and phenotyping 3D spheroids
› Provide packages for phenotyping of single-cell and cell culture applications, including imaging instruments, software and consumables
› Develop and manufacture systems for OEM partners in the space of cancer tissue companion diagnostics and single-cell biology

CAR-T = Chimeric Antigen Receptor T-cell

MEDICAL DEVICES (MEDICAL MECHATRONICS)

For a description of the addressable market of medical mechatronics products, please refer to the information in the previous section.

FOCUS ON GROWTH APPLICATIONS FOR MEDTECH

Attractive market of USD 14 bn with CAGR in the HSD

MARKET, USD

42 bn

ADDRESSABLE

14 bn

MID-TERM CAGR

MSD

HIGHER CAGR APPLICATIONS (EXAMPLES) Robotic surgery, neuro-modulation, wearables HSD

Aligned with Tecan's technological capabilities in electronics, RF, optics, fluid and gas
Focus on projects of medium to high complexity
Eccus on projects of low to medium volume
Match with high delivery, reliability and quality expectations

TECAN BENEFITTING FROM VARIOUS MEGATRENDS

Megatrends are long-term transformation processes that depict far-reaching social and technological changes. The markets in which Tecan is active are positively influenced by a number of megatrends. They also result in increased sample volume and a significant rise in diagnostic tests as well as surgical procedures and other medical interventions that are carried out. This requires higher levels of productivity. The tests and procedures must be reproducible and accurate, the processes standardized and robust.

Strict regulatory standards must also be complied with. Tecan has systematically focused its corporate strategy on these markets and requirements and can therefore obtain significant benefits from these transformation processes.

The 21st century has often been described as a century of biological discovery and development - the century of biology. It is estimated that, every six months, the world's

KEY APPLICATIONS DRIVE RESEARCH AND CLINICAL SOLUTIONS

We're speeding discovery and increasing clinical impact

Research breakthroughs bring new opportunities to diagnose and fight disease

Laboratory automation in life sciences, pharma and in-vitro diagnostics as well as innovative medical procedures empowered with:

Scalability and productivity
Reproducibility and standardization
Precision
Robustness at scale
Regulatory compliance

laboratories generate more biological data than has ever been created in human history and an explosion of scientific knowledge is revolutionizing the possibilities for healthcare. Our deepening understanding of the human genome and cell biology is reshaping our approach to complex diseases, such as cancer, cardiovascular issues, infectious diseases and rare genetic disorders. All four key applications that Tecan is focusing on cover a range of diseases and disorders. Tecan's products broadly help customers discover and develop new diagnostic and therapeutic solutions, optimize costs and shorten time to regulatory approval, benefiting more patients worldwide.

For example, with the COVID-19 pandemic, the scientific community reacted fast. Researchers were able to decode its RNA sequence and identify the structures and made them available globally. Labs were able to develop rapid diagnostic tests and – crucially – pharmaceutical and biotechnology companies were able to develop vaccines within 10 months.

Also in other areas, for example in oncology, new anticancer drugs have been approved in the last few years with entirely novel mechanisms of action for treatment, such as the first products based on gene therapy approaches.

THE CENTURY OF BIOLOGY CONTINUES

Our strategy is designed to address global megatrends

AN EXPLOSION OF BIOLOGICAL

$x10^9$

KNOWLEDGE

Genomics data generation has grown from a few gigabytes to the range of exabytes

GROWTH OF INNOVATIVE TREATMENTS

Over 40% of new drugs approved by the FDA in recent years are personalized medicines which require advanced companion diagnostics

GROWING AND AGING POPULATIONS DIGITAL SOLUTIONS, INCLUDING AI

The proportion of population over 60 years old will grow to over 20% in 2050 vs 5% in 1950

2×108 c

Al predicts 3D shape computationally from genetic code for 200,000,000 known proteins - transforms research

Megatrends

Positive effects on Tecan

Population growth and the aging population

Many diseases, such as cancer and cardiovascular diseases, are more prevalent in old age. Around the world, significant sums are being invested in the development of innovative drugs, medical devices and surgical procedures to improve treatments. Numerous novel drugs were approved in recent years, many of which are based on previously unused modes of action. The total volume of diagnostic tests that enable diseases to be identified is increasing and more tests are being carried out per person.

Increased demand for innovative medical devices: These same underlying trends also increase the demand for medical devices such as cardiovascular controllers, home hemodialysis systems, patient monitoring and telemedicine devices or for surgical robots that make surgeries more effective and less invasive.

Shortage of skilled labor: As the baby boomer generation retires and cannot be fully replaced, coupled with high staff turnover rates, there is a growing shortage of skilled workers, which in turn is driving increased demand for automation.

As many diseases are being treated with increasing success, people are living longer, which in turn increases the demand for automated solutions in diagnostic testing and medical devices, such as those used for patient monitoring after cancer surgery, including minimal residual disease (MRD) testing.

Development of targeted pharmaceuticals and innovative surgical procedures

The growing use of personalized medicine means that the biomolecular constitutions of individual patients are increasingly taken into account, allowing targeted drugs to be deployed. Tecan supports research into characteristic biological features (biomarkers) and the discovery of new molecules with automation solutions. Tecan solutions are also being used in companion diagnostics.

Through its Partnering Business, Tecan also participates in medical market segments like robotic surgery and cardio-vascular controllers.

An explosion of knowledge in the field of biological correlations and molecular processes – using these findings in applied markets Life science research is coming up with new findings at an ever quicker pace. These are being increasingly used not only in drug development and human diagnostics, but also in numerous applied markets.

Some examples: In forensics, criminals are being convicted based on DNA profiling. The same techniques and procedures used in human diagnostics are being employed in diagnostics for farm animals. In the food industry, special products are being developed that counteract disorders of the intestinal flora. In these laboratories too, state-of-the-art automation solutions from Tecan improve efficiency.

Digitalization of processes, including AI, and increased regulatory complexity

The growing demand for automation is supported by an increasing digitalization of the laboratory and clinical environments, enabling new approaches for prevention, diagnosis, treatment and monitoring.

Tecan is a key innovator in digital solutions, both in terms of user interface and laboratory connectivity.

The ever increasing regulatory complexity in clinical and medical markets requires more assistance with quality systems management or process validation, regulatory advice or enterprise risk management – an area Tecan is recognized as a global leader in quality and regulatory affairs.

TECH ADVANCEMENTS TRANSFORMING HEALTHCARE

Technology trends

Multi-omics integrates different biological data layers to understand disease mechanisms and treatment options

Al-powered drug discovery accelerates the identification of new drug candidates, de-risking clinical trials and thereby reducing R&D costs in increasingly automated labs

Organoid and cell-based models in pharma preclinical stages of drug development require tailored solutions for phenotypic readout applications

Lab automation becomes more accessible, flexible and cost-effective with better UX, modularity and data driven lab and fleet management

Cell & gene therapies providing targeted treatments that can potentially cure previously untreatable diseases

Predictive and preventive Dx analyzing vast datasets to identify early signs of disease, leading to more effective and timely interventions

Robotic surgery enhancing precision in surgical procedures, reducing recovery times and minimizing human error

CORE COMPETENCES AND COMMONALITIES

Tecan's success is based on core competences that the Company has systematically acquired and expanded over the years. Tecan's core competence was built around the automation of complex processes in life science research laboratories and in the strictly regulated diagnostics market. This overall competence is enabled by core capabilities, including robotics, optics, complex electronics, fluidics, regulatory expertise, systems integration, and scalable high-integrity manufacturing, as well as expertise in individual aspects of an application's typical processes. In robotics, Tecan is the market leader in the automation of very diverse repetitive work steps that have to be conducted in laboratories. Its core competences cover both instruments and the software packages needed for their operation as well as a growing digital ecosystem for laboratories, for example cloud-based software solutions that enable the connectivity of instruments.

Tecan has established a leading open digital ecosystem that is currently deployable in laboratories, serving as a key differentiator and delighting our customers in numerous ways. Leveraging hardware and software modularity, Tecan swiftly adapts to market trends and dynamics while capitalizing on competences across both the Life Sciences and Partner-

ing Business segments. This modular portfolio enables the sharing of hardware and software between divisions, applicable in both regulated and non-regulated environments. The inherent modularity facilitates rapid market entry with new solutions, minimizing financial and risk burdens, which is advantageous for our product development and appealing to our Partnering Business clients. At the core of this capability is our software architecture, MAPlinx, which supports workflows in genomics, proteomics, and cell and tissue analysis, and accommodates a wide range of hardware configurations — from point-of-care devices to complex, fully integrated lab automation systems. This comprehensive approach spans the continuum from research to highly regulated IVD applications. Additionally, Tecan's expertise in digital solutions is transforming our service model from fixand-repair to prevention, prediction, and remote service and repair. Our extensive software solutions for fleet management, initially launched in the Life Sciences Business division, are increasingly attracting clients in the regulated diagnostic solutions sector of the Partnering Business. Furthermore, our unique lab orchestration platform enhances lab productivity by integrating Tecan products with third-party and competitive offerings.

LEVERAGING MODULARITY OF POWERFUL SOFTWARE AND HARDWARE PLATFORMS

Enables nimble response to market needs from research to clinical

Modularity approach

Shared hardware and software platforms serve both Tecan business segments
Platforms can be tailored for RUO and regulated products
Modularity accelerates time to market and costeffective development of new systems

Tecan expanded its capabilities and competences through the acquisition of Paramit Corporation in 2021. Paramit is an expert at manufacturing complex electromechanical systems for the medical and life sciences industries. The company combines custom microfluidics, electronics, optics and motion control to help its clients create a range of products, from handheld or point-of-care devices to benchtop instruments and cart- based systems. The acquisition also brought significant engineering as well as cost-competitive manufacturing capabilities, both in North America and in the APAC region.

Paramit's patented, computer-directed assembly technology, vPoke®, resolves complex mechanical assembly into tightly controlled assembly steps for medical device and life science instruments. The process generates a rich device history record, providing component traceability, while reducing the potential for errors ("zero-defect manufacturing").

Beyond technical expertise, Tecan has significant application know-how in the various disciplines of life science research and clinical diagnostics. One of the Company's unique selling points and core competences is its ability to bridge the gap between research and the strictly regulated diagnostics market for its customers and partner firms. The steady increase in regulatory requirements presents a major challenge, in particular for smaller companies and companies that are traditionally oriented only toward the research market. Tecan can benefit from these growing market barriers, as it has built up these core competences and invested in regulatory compliance for years.

There are many commonalities for the various key applications and product use cases of the combined product and service portfolio that cover a variety of healthcare uses, such as cancer, infectious diseases, metabolic diseases and many more. The product and service offering allows scalability of processes and workflows as well as the scaling of the manufacturing itself, it increases reproducibility and standardization of processes and procedures, delivers precision and robustness. As the majority of customers are working in a regulated environment like diagnostics or medical devices, regulatory compliance is a must in these areas.

Tecan has particular technical expertise in liquid handling and specific detection technologies. Liquid handling involves the high-precision handling of fluids, even in the smallest quantities. This process includes the aspiration and dispensing of liquids with differing physical and chemical properties, such as reagents and blood (both whole blood and serum). The quantities of fluid involved can typically range from milliliters to microliters. Some applications require the handling of even smaller quantities, for which Tecan can also provide technologies. Tecan also has the necessary sensor technology to monitor processes, for example, to ascertain whether a liquid transfer has actually taken place. Another example is a newly launched product, Phase Separator™, an innovative liquid separation technology that promises to save time and improve accuracy in laboratory workflows. With specific applications in liquid biopsy and biobanking, it addresses the critical challenge of detecting liquid–liquid interfaces and effectively separating neighboring phases, while avoiding the risk of contamination making it ideal for separating plasma in centrifuged blood samples. One of the Company's particular competences is the ability to make these often highly complex processes easy to perform through user-friendly software with an intuitive user interface.

To enable the entire workflow to be automated, Tecan also integrates third-party devices. Customers benefit from the enormous application know-how of Tecan specialists, even in strictly regulated areas such as clinical diagnostics.

In the area of detection, Tecan specializes in analytical devices that use a variety of optical methods to detect reactions in a test procedure, such as the binding of an antibody to a target molecule. This can take place, for example, with fluorescence, luminescence, absorption methods or through imaging technologies. Tecan also uses patented technologies here to lower the detection limit or reduce diffused light and thereby increase the sensitivity. Tecan detection instruments are able to process varying wavelengths quickly and flexibly, even in parallel.

Message from the CEO
Executive summary
Sustainability at Tecan
Environment
Social impact
Governance
Data
Article 964j-k index
GRI content index
TCFD index
Audit report

CEO STATEMENT.

A message from Achim.

As Tecan's CEO and chair of our Sustainability Committee, I'm pleased to provide this overview of our management of environmental, social and governance impacts, our achievements in 2024 and our outlook for 2025 and beyond.

Tecan's sector was faced in 2024 with challenging market conditions and at the same time, popular discourse suggested a shift away from earlier public demand for corporate sustainability action, and regulatory uncertainty followed the planned European Commission review of EU corporate sustainability reporting legislation. As we reflected on the direction and content of our sustainability program these factors were noted, and we concluded that our strategy does not need to change. Our activities are driven by sound management of our material topics as part of our overall goals of profitable growth, innovation and sound risk management, and we know our customers, investors and employees value this. Indeed, our social impact approach in particular was needed all the more in 2024, as our leaders were asked to step up to ensure team members were clear about our direction as we navigated the challenging external environment.

Our promise to employees is that Tecan is a workplace in which they can "stay unique and make it count." This promise was strengthened in 2024 with an in-depth training program for all Tecan's senior leaders focusing on creating a work environment that offers psychological safety and true inclusion. Employees who feel confident to offer their own insights and suggestions make Tecan a stronger company, and having a diverse range of experience shaping those insights is key to enhancing our resilience. A pulsecheck survey held at the end of 2024, following restructuring and layoffs, showed that employees were looking for additional transparent communications from senior management and further opportunities to engage in dialogue. In response, our Management Board held the first in a series of small group in-person sounding board sessions in December 2024. These will be continued in 2025 and offered globally, with the aim of learning from our colleagues and building even better employee engagement.

The impacts of a changing climate were increasingly apparent in 2024, and the European Union's Copernicus Climate Change Service (C3S) has since confirmed that 2024 was the first year in which the global average temperature clearly exceeded 1.5°C above pre-industrial levels. To progress towards our greenhouse gas emissions reduction targets, in 2024 Tecan purchased 87% electricity from renewable sources. Tecan's first detailed climate scenarios risk analysis was completed in 2024, which provided a glimpse into operating in a future of more severe weather events and an expected mid-term increase in climate-related legislation. In this report, we describe the actions already underway to mitigate the related risks as well as the groundwork carried out in 2024 to manage the related data. Our first ESG data controller joined Tecan in May 2024, and the data management platform we've built out will enable us to assess more quickly which activities are having a positive impact, and what interim targets could strengthen our climate impact program.

A notable increase in knowledge-sharing with customers, suppliers and peers about our sustainability program suggests that 2025 will provide opportunities to develop rewarding collaborations as we work to advance our corporate purpose: improving people's lives and health by empowering our customers to scale healthcare innovation globally from life science to the clinic. Although the external market environment remains challenging in several areas, Tecan has the skills, structure, and relationships on a global level to work together with our business partners for long term, sustainable success and growth. I look forward to pursuing these opportunities in 2025, and I thank you for your interest in Tecan's sustainability activities.

Dr. Achim von Leoprechting Chief Executive Officer

EXECUTIVE SUMMARY

"Sustainability" recognizes that environmental health, social equity and economic vitality are interconnected, and all are critical in ensuring we create thriving, healthy, diverse and resilient business practices and communities for this generation and generations to come. To ensure that opportunities to carry out our business activities sustainably are identified and pursued, Tecan has a Sustainability Committee chaired by our CEO and a sustainability strategy that is integrated into the Group strategy. The Audit Committee of the Board of Directors has overall responsibility for the oversight of sustainability topics and priorities. Integrating sustainability considerations into business decision-making equips Tecan for long-term success, strengthening the creation of value for our shareholders and other stakeholders and reflecting our core values.

2024 HIGHLIGHTS

Tecan carried out a double materiality assessment in 2023, evaluating both the financial impact of external sustainability factors on Tecan's business performance ("financial materiality") and the social and environmental impacts of Tecan's business on society ("impact materiality"). A total of eleven material topics were identified, each of which is described in this report. Each material topic has related actions to ensure effective management of the risks and opportunities it presents. Some material topics, such as Product Quality and Safety, have long been recognized as vital to Tecan's business and have detailed associated policies and internal measurement of achievements. Other topics, such as Circular Economy, are at an earlier stage of integration into Tecan's business practices. This summary provides the goals and key 2024 achievements in each area. Looking ahead to 2025, Tecan will build on the achievements of 2024 to strengthen greenhouse gas emissions reduction activities and accelerate progress in transitioning to a circular economic model.

ENVIRONMENT

CLIMATE IMPACT

Focus: Reducing the greenhouse gas emissions generated by our business activities.

Goal: Overall Net Zero Target: Tecan Group Ltd. commits to reach net-zero greenhouse gas emissions across the value chain by 2050.

Near-Term Targets: Tecan Group Ltd. commits to reduce absolute scope 1 and 2 GHG emissions 42% by 2030 from a 2022 base year. Tecan also commits to increase active annual sourcing of renewable electricity from 34% in 2022 to 100% by 2025, and to continue active annual sourcing of 100% renewable electricity through 2030. Tecan finally commits to reduce absolute scope 3 GHG emissions 42% by 2030 from a 2022 base year.
Long-Term Targets: Tecan Group Ltd. commits to reduce absolute scope 1, 2 and 3 GHG emissions 90% by 2050 from a 2022 base year.

2024 Achievements: Increase in purchase of renewable electricity from 60% to 87%, through which Tecan reaches already the company's 2030 near-term scope 1 and 2 GHG emissions reduction target.

CIRCULAR ECONOMY

Focus: Transitioning from a linear economic model to a circular economy, e.g. by implementing eco-design principles in product research and development, optimizing the percentage of recycled content in our products and packaging, optimizing product lifespan and identifying and pursuing other opportunities to reduce waste.

Goal: Reduced waste throughout our value chain.

2024 Achievements: Continuing progress in developing consumables products with reduced impact, including redesign of a tray to use 40% less plastic than previously.

SOCIAL IMPACT

BEING THE EMPLOYER OF CHOICE

Focus: Promoting employee learning and development, and a positive workplace culture.

Goal: Being the employer of choice in our industry.

2024 Achievements: In 2024, Tecan advanced its goal of being the employer of choice by launching the "Unleash – Your Journey, Our Commitment" program, which emphasizes employee growth and opportunities.

SOCIAL IMPACT

DIVERSITY, EQUITY AND INCLUSION

Focus: Having a work environment founded on equity and fair treatment, with processes and practices that foster equal access to opportunities for everyone, and an inclusive culture where all individuals are welcomed, respected and can thrive in a psychologically safe environment.

Goal: A diverse workforce, recognizing each individual's uniqueness and reflecting society's diversity at all levels.

2024 Achievements: Tecan advanced its DEI goals by launching a framework to empower Employee Resource Groups (ERGs), establishing a DEI council to foster collaboration and learning, and initiating diversity measurement and monitoring of data.

HEALTH AND SAFETY

Focus: Ensuring the health and safety of Tecan's employees.

Goal: To fully implement Tecan's Global Health & Safety program, replacing our current local H&S systems.

2024 Achievements: Successful first surveillance audit of the ISO 45001 standard at Tecan's Männedorf headquarters; successful health and safety audits in in Hamburg and Morgan Hill.

CUSTOMER SATISFACTION

Focus: Our customers and partners are at the core of all our business activities.

Goal: High customer satisfaction and a prompt response to customer requests.

2024 Achievements: Tecan's well-established After Sales Care process showed a vast majority of satisfied customers, with more than 90% describing themselves as "very satisfied" or "completely satisfied".

GOVERNANCE

GOVERNANCE AND ETHICS

Focus: Consistently demonstrating good business practices, including in areas such as anti-bribery and anti-corruption, risk management and reporting.

Goal: Consistent adherence throughout Tecan to the spirit and provisions of our Code of Conduct.

2024 Achievements: Tecan's Code of Conduct has been upheld throughout the company.

GOVERNANCE

PRODUCT QUALITY AND SAFETY

Focus: Striving for excellence in product quality and safety by taking the time to fully understand our customers' needs, always complying with national and international requirements, implementing those requirements in our products and our organization, and providing long-term customer care.

Goal: To continuously improve the quality of our products and processes and ensure compliance with and the effectiveness of our quality management system.

2024 Achievements: Tecan successfully hosted several external authority and more than 15 QMS certification audits, all concluding with no major findings. Notably, our production facility in Penang, Malaysia underwent a US FDA inspection, resulting with zero observations.

CYBERSECURITY

Focus: Ensuring the confidentiality, integrity, and availability of data (e.g., customer and employee data), and protecting this data from unauthorized access, use, or disclosure.

Goal: A cybersecure environment for every aspect of Tecan's business.

2024 Achievements: ISO 27001 certification at a key site, global process roll-out underway

INNOVATION

Focus: Provide an enabling environment for product and service innovation, from improvements to disruptive or breakthrough innovations.

Goal: Grow Tecan's business through product and service innovation.

2024 Achievements: Successful launch of key products in both business divisions including the solid phase extraction module Resolvex i300, the Spark© Cyto 3DAI analysis tool, which enables 3D cell biology powered by AI, allowing the monitoring of key parameters for growing spheroids or organoids in real time, and a preview of the productivity boosting multiomics liquid handling workstation Veya

RESPONSIBLE SOURCING

Focus: Managing the social, governance and environmental impacts of our procurement activities.

Goal: A value chain conforming to Tecan's standards as set out in our Supplier Code of Conduct.

2024 Achievements: Suppliers representing 64% of all production-related spend for Tecan's main production sites have signed Tecan's Supplier Code of Conduct or provided their own commitment to equivalent standards. A target to increase this to 80% in 2025 has been set.

SUSTAINABILITY AT TECAN

TECAN

Tecan is a pioneer and global leader in laboratory automation. Founded in Switzerland in 1980, the Company has more than 3,300 employees; a full overview of Tecan's employee profile is included in the Social Impact and Data sections of this report. Tecan has manufacturing, research and development sites in Europe, North America and Asia, and maintains a sales and service network in over 70 countries. Tecan Group Ltd. is the parent company, and is a limited corporation incorporated in Switzerland, whose shares are publicly traded. Tecan Group Ltd.'s registered office is at Seestrasse 103, 8708 Männedorf, Switzerland. The entities included in Tecan's sustainability report are indicated here.

Tecan does not conduct animal testing, or participate in, or knowingly fund, any external studies that use embryonic stem cells, fetal tissue or fetal cell lines. Clients include pharmaceutical, biotechnology, in-vitro diagnostic and medical devices companies, university research departments, and diagnostic and other laboratories. As an original equipment manufacturer (OEM), Tecan also develops and manufactures

OEM instruments and components that are then distributed by partner companies into research, in-vitro diagnostic and medical device markets. Tecan's value chain also includes the distributor network and supply chain, which are described in this report.

SUSTAINABILITY GOVERNANCE

In 2021 Tecan created a Sustainability Committee, chaired by the CEO and made up of Management Board members responsible for specific ESG (environment, social and governance) areas, as well as Tecan's CFO, Sustainability Committee lead, and two subject matter experts who joined Tecan in Q3, 2021. The Sustainability Committee meets quarterly and sets Tecan's sustainability strategy and priorities, which are taken to the full Management Board for approval.

In 2023, Tecan's Audit Committee of the Board of Directors took on responsibility for the oversight of sustainability topics, and delegates management of these to Tecan's Management Board. Tecan's CFO and Sustainability Committee lead brief the Audit Committee on key topics at least twice per year. The full Board of Directors is briefed on sustainability developments by the CEO and respective Management Board members during their regular meetings, as described in the more detailed overview of our Board in the Corporate Governance section of Tecan's Annual Report. Board of Directors members have relevant sustainability expertise, gained in their previous roles as CEOs or senior executives of companies with sustainability programs. A well-rounded understanding of business impacts is one of many criteria looked for in potential Board members; the opportunity to increase the visible

diversity of Tecan's Board of Directors is also one of the many factors considered, as is maintaining the gender balance of the Board. Further detail about how Tecan's Board of Directors functions is set out in the Corporate Governance Report chapter of the Annual Report, as well as in Tecan's Organizational Regulations.

Sustainability topics are included in Tecan's regular annual strategy development and review process, annual risk management process, and in assessment of potential acquisition opportunities. In 2025, Tecan's sustainability strategy and response to the climate scenarios risk analysis carried out in 2024 will be more explicitly integrated into business planning and the business review process.

Throughout Tecan, management of social and environmental impacts is integrated into daily work. In addition, specific initiatives with a strong sustainability focus are tracked by Tecan's Sustainability Committee, as reflected in the '"Sustainability Governance Structure" diagram. Sustainability Committee members are responsible for updating the Sustainability Committee on the progress of workstreams within their area, and the Sustainability Committee lead presents a summary to the Management Board when key decisions are taken, along with any committee proposals that need Management Board approval. Tecan's Sustainability Director is the Sustainability Committee secretary, responsible for preparing the committee meetings and driving the sustainability agenda. In 2024, Tecan's Sustainability Director briefed the Management Board twice and met with Tecan's CEO and all Management Board members either ad hoc or monthly depending on the material topics falling within that Management Board member's area.

Tecan's CEO, Sustainability Committee members and additional Management Board members contribute to and review the annual Sustainability Report. The Audit Committee and the Chair of the Board of Directors review the Sustainability Report and provide input.

Sustainability targets are included in the short-term variable pay compensation criteria of all Management Board members and all Tecan colleagues who have a variable pay component to their compensation (see also the Compensation report chapter of Tecan's Annual Report). In 2024, these targets related to the material topics Being Employer of Choice; Diversity, Equity and Inclusion; Customer Satisfaction and, Climate Impact.

Tecan has been able to offer internship opportunities to a sustainability trainee since Q3, 2022, with each trainee who has graduated from the program so far going on to pursue further work or studies in sustainability, within Tecan and externally.

Tecan's Sustainability Committee members:

Committee Chair: Dr. Achim von Leoprechting, CEO
Sustainability Committee Lead: Martin Brändle, Senior VP Corporate Communications & IR
Ulrich Kanter, Head of Operations and IT
Tania Micki, Chief Financial Officer
Erik Norström, Head of Corporate Development
Ingrid Pürgstaller, Chief People Officer
Andreas Wilhelm, General Counsel and Secretary of the Board of Directors of Tecan Group Ltd.
Marco Felicioni, Head of Environment, Health & Safety Office
Sustainability Committee Secretary: Sarah Vowles, Director Sustainability & Corporate Communications

TECAN'S SUSTAINABILITY GOVERNANCE STRUCTURE

Governance

Audit Committee Board of Directors: Oversight

Management Board: Owners of the Material topics

Sustainability Committee: Prioritizes actions

Workstream Leaders: Implement actions

TECAN'S SUSTAINABILITY STRATEGY

At Tecan we improve people's lives and health by empowering our customers to scale healthcare innovation globally from life science to the clinic. We collaborate with our customers in healthcare and the life sciences, from early-stage innovation through delivery of clinical solutions. We deliver the products, services and solutions that make lab processes and medical procedures precise, reproducible and compliant. This leads to scalable outcomes that are further reaching and ever more valuable to humankind. Tecan's sustainability strategy supports the Company's purpose, is integrated into Tecan's annual strategy development and review process and was approved by the Board of Directors in 2023. This strategy enables Tecan to say, "Our products add value to society, our business practices do, too". Both a description of how Tecan operates today and an aspiration indicating the areas in which Tecan will strengthen processes on an ongoing basis, the strategy states: From design through production to end-of-life, we maximize the positive impact of our products and business practices. Tecan's products enable innovative healthcare, consider eco-design, and are produced with responsibly sourced materials. Our sites are carefully managed to minimize negative environmental impacts and to implement practices which have a positive environmental impact. We consistently demonstrate excellence in product quality and safety, governance, and risk management, and have a measurable positive impact as an employer and in our communities. Implementation of this strategy is further

described in the Environment, Social Impact, and Governance sections of this Sustainability Report.

SUPPORT FOR THE UNITED NATIONS GLOBAL COMPACT AND UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UN SDGS)

Tecan joined the UN Global Compact (UNGC) in 2018, and in doing so committed to a precautionary approach to environmental challenges, along with key social impact and good governance principles derived from UN instruments such as the Universal Declaration of Human Rights, the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, the Rio Dec laration on Environment and Development, and the United Nations Convention Against Corruption. Adherence to these principles is tracked by Tecan's Sustainability Director and reported on annually via the UNGC reporting platform.

Additional SDGs are supported through the work of Tecan's customers, and through research projects supported by Tecan. The majority of Tecan's customers focus on activities intended to ultimately benefit human health. A selection of customer stories is presented on the sustainability page of tecan.com.

SDGS SUPPORTED BY TECAN

Tecan supports the blueprint for a better future set out in the UN Sustainable Development Goals, and aligns in particular with goals 3, 5, 8 and 12.

Source: www.un.org/sustainabledevelopment/sustainable-development-goals

SDG 3 Good health and well-being.

Ensure healthy lives and promote well-being for all at all ages.

Tecan's products and business purpose – helping improve people's lives and health, by empowering our customers to scale healthcare innovation globally from life science to the clinic – directly support this sustainable development goal.

SDG 5 Gender equality.

Achieve gender equality and empower all women and girls.

As an employer, Tecan works to advance equal opportunities for women, and to ensure equal treatment in the workplace. Efforts in this regard are outlined in the social impact section of this report.

SDG 8 Decent work and economic growth.

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

Through ethical business practices and with an emphasis on creating a diverse, inclusive, positive work culture Tecan supports this Goal.

SDG 12 Responsible consumption and production.

Ensure sustainable consumption and production patterns.

Tecan works to support UN SDG 12 by integrating sustainability into our business practices, including working towards a more circular business model through our ecodesign principles.

STAKEHOLDER ENGAGEMENT

Tecan's stakeholders include customers, investors and employees, as well as our business partners and the communities in which we live and work. Customer satisfaction is a priority for Tecan, as described in more detail in the Customer Satisfaction section of this report. Customer surveys enable a structured engagement process and complement the ongoing dialogue that can form between Tecan and customers based on the long life of Tecan products and associated service of products. In 2024 Tecan's Sustainability Director participated in a notably increased number of meetings with customers, as customer interest in Tecan's impact management activities grew significantly.

Tecan has regular dialogue with investors as described in the Information Policy section of this report. In October 2024 Tecan invited investors to an onsite and virtual Capital Markets Day, which included an overview of the Company's sustainability program. Tecan regularly responds to requests for information from customers and ratings agencies, and through these and the other interactions is able to assess what topics are of most importance to these stakeholders.

Tecan's engagement with employees is described in the Social Impact section of this report. Engagement with stakeholders including Tecan's peers is facilitated by participation in industry associations. Tecan's stakeholder engagement enables Tecan to calibrate its business decisions to ensure an optimum outcome.

Tecan is a member of associations including:

Advance, a Swiss-based organization working for gender equality in business
ALDA (Analytical, Life Science & Diagnostics Associa tion), a "non-profit industry trade association for global companies that develop and market products and services used in life science research, drug discovery, QA/ QC and food testing, and clinical diagnostics"
MedTech Europe, an industry association with the mission to "make innovative medical technology available to more people, while helping healthcare systems move towards a sustainable path"
The Regulatory Affairs Professionals Society (RAPS), which is based in the US and is "the largest global organization of and for those involved with the regulation of healthcare and related products," including medical devices, pharmaceuticals, biologics and nutritional products
SwissHoldings, an association of industrial and service companies based in Switzerland working for favorable business conditions for such multi-national enterprises
Swiss MedTech, "the association of Swiss medical technology", which represents approximately 700 companies, and is a member of the umbrella group MedTech Europe

• The United Nations Global Compact (UNGC), an initiative based on CEO commitments to sustainability principles, and to supporting United Nations' goals

SUSTAINABILITY FOCUS AREAS

Tecan's material topics were first identified in 2021 with input from stakeholders gained via employee engagement, customer surveys and queries, ratings agencies' questionnaires, participation in industry and other associations, and conversations with investors. In 2023 this materiality analysis was revised via a detailed double materiality assessment, carried out with the support of external consultants. "Double Materiality" assesses both the financial impact of external sustainability factors on Tecan's business performance ("financial materiality") and the social and environmental impacts of Tecan's business on society ("impact materiality").

Following the best-practice methodology reflected in the diagram "Double Materiality Approach," Tecan engaged with stakeholders via customer, supplier and employee surveys and interviews as well as detailed research. Stakeholders were identified by assessing impacts throughout the value chain and pinpointing stakeholders relevant to

Double Materiality Approach

OBJECTIVE

1. Understand the context & Stakeholder identification

Understand the value chain impacts and relevant stakeholders

2. ESG material matters scoping

Scope the topics and sub-topics to be analysed

3. Stakeholder engagement

Inform the assessment with stakeholders´ view

4. Materiality

Identify impacts, risks & opportunities, define materiality thresholds, determine material topics

assessment 5. Documentation

Draft the materiality report

the different parts of the value chain. The double materiality analysis was conducted on behalf of all Tecan entities. As well as identifying actual and potential impacts, both negative and positive, the likelihood and severity of each impact identified was assessed, looking into Tecan's full value chain and adopting a forward-looking perspective. In the case of potential negative human rights impacts, severity was given precedence over likelihood. The scale, scope, and irremediable character of the impacts identified was then assessed to determine if each met the threshold of being "material".

This detailed analysis confirmed the results of Tecan's 2021 materiality analysis. Certain topics that had previously been grouped under the broad topic Governance and Ethics were identified as material topics in their own right, and are reported on in the Customer Satisfaction, Innovation and Cybersecurity sections of this report. Health and Safety was also identified as a material topic, having been previously included in the focus area Being Employer of Choice. Community Engagement did not meet the threshold of materiality at the Group level but could be expected to if a country-level perspective were taken and is included in this report as an important aspect of Tecan's social impact.

Carrying out the double materiality assessment provided Tecan with a welcomed additional opportunity for dialogue with stakeholders about their views on sustainability and Tecan's approach to managing impact. Tecan will continuously monitor developments externally and internally to assess if the current material topics remain "material" and if new topics should be included in this scope.

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Material topics

ENVIRONMENTAL IMPACT

SOCIAL IMPACT

GOVERNANCE

Climate Impact

Strategies for adaption, resilience and transition to a low-carbon economy, focusing on reducing GHG emissions, using renewable energy and investing in carbon optimized transport and logistics

Circular Economy

Seeking to design out waste in our products and processes, increasing the percentage of recycled content in our products and packaging, extending product lifespan

Customer Satisfaction

Ensuring a consistently high standard of customer satisfaction

Being the Employer of Choice

Maintaining a positive workplace culture and employee journey including through talent management, learning and development

Diversity, Equity and Inclusion

Demonstrating equality of opportunity in business practices including hiring, training and promotions

Health and Safety

Ensuring healthy and safe working conditions

Product Quality and Safety

Tecan strives to achieve the highest standards in product quality, customer satisfaction and regulatory compliance

Governance and Ethics

Demonstrating good business practices

Cybersecurity

Protecting information assets, mitigating risks, enhancing trust and protecting sensitive information

Innovation

Enabling innovation, including improvements, disruption and breakthrough innovations

Responsible Sourcing

Managing the social, governance and environmental impacts of our procurement activities

Management of each material topic is described in the Environment, Social Impact, and Governance sections of this report. ! "#\$%& '#(%) *

TRANSPARENT COMMUNICATION AND SUSTAINABILITY RATINGS

Tecan values transparency and invests a significant amount of time in completing voluntary reporting requests and responding to customer sustainability questionnaires. Below are the ratings Tecan received in 2023 and 2024 from the most well-known sustainability ratings organizations. In general, Tecan's ratings improved in 2024, including achieving a score in the 90th percentile in our sector and the 76th percentile of all companies assessed via the S&P Corporate Sustainability Assessment.

Survey	2024 Rating	2023 Rating
	CDP C	C
EcoVadis	Silver, 66/100	Silver, 63/100
ISS (Governance)	2/10, low risk	1/10, lowest risk
MSCI	AAA	AA
S&P CSA	50/100	45/100
Sustainalytics	12.1 (low ESG risk)	13.4 (low ESG risk)
WDI	81/100	80/100

ABOUT THIS REPORT

This annual Sustainability Report has the same scope as the rest of Tecan's Annual Report, covering the period January 1, 2024 – December 31, 2024 and unless otherwise stated, covers all Tecan entities. A list of Tecan entities is included here. There are no restatements of data. This report has been prepared with the provisions of Article 964 j- k of the Swiss Code of Obligations, Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour in focus, as well as those of Article 964 a- c of the Swiss Code of Obligations, Ordinance on Climate Disclosures. This Report is also in alignment with GRI (Global Reporting Initiative) standards. Selected data points in Tecan's Sustainability Report have received limited external assurance, which can be found here. The report is reviewed as described. For further information contact sustainability(at) tecan.com or sarah.vowles(at)tecan.com.

ENVIRONMENT

Tecan's main business activities are the design and development of innovative instruments, instrument components and modules, software, reagents and consumables for research, diagnostics and medical use and the execution of global sales and service activities. For instruments, components and sub-modules, the largest source of revenue contribution, focus is on the final assembly, testing and packaging. In Tecan's facilities these activities have a relatively low environmental impact as they are not energy intensive, do not generate a large amount of waste and do not require significant water use – most of Tecan's water consumption is in the bathrooms and canteens. Nevertheless, Tecan aims to minimize any negative environmental impacts of its business activities and implement opportu-

nities to have a positive environmental impact. Climate Impact and Circular Economy are material topics for Tecan.

CLIMATE IMPACT

Although Tecan's business activities are not energy- or emissions-intensive information about our environmental impact has been reported in our Annual Report since 2007 and data disclosed via CDP reporting since 2011. In 2019 Tecan set a target to reduce a defined portion of greenhouse gas emissions by one-third by 2022, and this target was reached. A commitment to tracking Tecan's total global greenhouse gas emissions at least annually is included in Tecan's Human Rights and Responsible Business Practices policy, which is available on tecan.com.

As the reports of the International Panel on Climate Change have made clear, rapid decarbonization would be needed to limit average global temperature increase to 1.5°C above pre-industrial levels. In January 2025, the European Union's Copernicus Climate Change Service (C3S) reported that 2024 was the first year in which the global average temperature clearly exceeded 1.5°C above pre-industrial levels. Tecan committed to the Science Based Targets initiative (SBTi) and Business Ambition for 1.5°C in 2022, aiming to make our contribution to the global emissions reduction effort. At the end of 2023, Tecan's science-based targets and emissions reduction plan were validated by the SBTi. In 2024, Tecan focused on building a data collection and management platform with the goal of tracking our scope 1 and 2 and most significant scope 3 emissions quarterly. This will enable interim targets to be set in support of our SBTs. Tecan also requests information about suppliers' emissions reduction practices in the detailed supplier qualification process, and advises suppliers on emissions reduction possibilities.

At the same time, Tecan has increased purchase of renewable energy, and purchased 87% renewable electricity in 2024, up from 60% in 2023.

Greenhouse gas emissions reduction

Tecan's SBTi-validated greenhouse gas emissions reduction targets are as follows:

Overall Net Zero Target: Tecan Group Ltd. commits to reach net-zero greenhouse gas emissions across the value chain by 2050.
Near-Term Targets: Tecan Group Ltd. commits to reduce absolute scope 1 and 2 GHG emissions 42% by 2030 from a 2022 base year. Tecan also commits to increase active annual sourcing of renewable electricity from 34% in 2022 to 100% by 2025, and to continue active annual sourcing of 100% renewable electricity through 2030. Tecan finally commits to reduce absolute scope 3 GHG emissions 42% by 2030 from a 2022 base year.
Long-Term Targets: Tecan Group Ltd. commits to reduce absolute scope 1, 2 and 3 GHG emissions 90% by 2050 from a 2022 base year

Tecan's environmental data is in the Data section of this report.

2024 Focus: Data Management

Collection and management of Tecan's environmental, social impact and governance data was the focus of a Groupwide project within Tecan in 2024, building on a foundational project that concluded successfully at the end of 2023. With the support of external consultants, a blueprint was developed in 2023 to increase automation of the data collection and management process where needed, and to extend the scope of data collected. In 2024, this blueprint was implemented and the 2024 reporting cycle is the first "live test" of the new processes and platform. Learnings from this reporting cycle will be followed up on in 2025 as needed. A key goal is to be able to calculate certain emissions categories more frequently than annually, gaining insight throughout the year on the effectiveness of steps taken to reduce emissions and if appropriate, setting related interim targets in support of Tecan's validated Science Based Targets. The project to build out the data management platform was led by colleagues in the Finance team, and the newly created role of ESG Data Controller within Group Controlling positions Tecan to follow best practice standards in ESG data management.

In addition to strengthening data management, oversight is being increased with Tecan's first external audit of key ESG data points. The results of this audit are included in this 2024 Sustainability Report.

Tecan's headquarters and site management

Tecan's Männedorf headquarters was an early example of a "green building", built with environmental impact in mind. It has a "living roof" which naturally reduces building energy consumption, as well as rooftop solar panels that generate around 10% of the building's electricity needs. LED lighting and automatic sunshades also reduce energy usage, and low-flow water systems ensure efficient water use. Charging stations powered by renewable energy are available free of charge for employees who have electric vehicles, and a subsidy for employees who commute using public transit also reduces overall environmental impact. For employees who need to travel between Tecan buildings or otherwise locally from Tecan's headquarters, hybrid vehicles are available. Impact is also managed at the employee canteen, which serves meals made from seasonal, local ingredients, always with a vegetarian option, and consciously avoids generating food waste. In 2023 Tecan's headquarters received ISO 14001 certification. Ensuring that the related best practices are shared among our sites around the world is a priority for Tecan's Environment, Health and Safety Office.

To reach Tecan's emissions reduction goals, facilities are transitioning to electricity from renewable sources wherever feasible. This is complemented by the solar panels at our facilities in Männedorf and Nänikon, Switzerland, and Grödig, Austria. In 2025, additional photovoltaic systems will be put into operation at the 'factory in the forest' in Penang, Malaysia. Where renewable electricity cannot be sourced directly from the grid Tecan is purchasing Renewable Energy Certificates. Tecan purchased 87% renewable electricity in 2024, up from 60% in 2023. The resulting decrease in greenhouse gas emissions is shown in the Data section of this report.

In 2025, Tecan plans to conduct energy audits at sites responsible for at least 50% of our total energy consumption. These audits will help us identify further opportunities for energy efficiency and reduction in emissions, ensuring we remain on track to meet our long-term sustainability goals.

Management of water and waste

Water scarcity is an increasing problem on every continent. In 2024, we completed Tecan's first water risk assessment, utilizing the World Resources Institute's geolocator tool to verify that we have no water-intense operations in water-stressed areas. We confirmed that Tecan has no water intense business operations (most consumption is in the bathrooms and canteens), there are no water risks to direct operations and all of our manufacturing site water comes directly from the municipal water supplies. No water is drawn by Tecan from local aquifers. Despite this low impact, Tecan seeks to improve water efficiency where possible, monitoring water withdrawals and water quality at each manufacturing site. We promote recycling and reusing water where possible and closely monitor the quality of the water we discharge. This approach guarantees regulatory compliance and provides a level of assurance that downstream ecosystems are protected. Tecan's performance target relating to water is to: Monitor water consumption and ensure no unexplained or unacceptable increase.

Zero Waste to Landfill

Achieving zero waste to landfill is crucial for both environmental sustainability and economic efficiency. By diverting waste from landfills, we significantly reduce greenhouse gas emissions, particularly methane, which is a potent contributor to climate change. This practice also conserves natural resources by encouraging recycling and reuse, thereby minimizing the need for raw material extraction. Economically, zero waste initiatives can lead to cost savings through reduced waste disposal fees and the creation of new revenue streams from recycled materials. Moreover, effective waste management can foster innovation and responsibility, encouraging businesses and communities to develop sustainable practices that benefit both the planet and future generations.

Tecan is committed to this vision and has initiated a pilot program at our Penang, Malaysia site, aiming for this to become our first facility to achieve zero waste to landfill. This initiative represents a significant step forward in our sustainability journey, setting a benchmark for our other sites worldwide.

Product Environmental Compliance

Tecan activities are also guided by our strict Product Environmental Compliance policy, and are reflected in Tecan's Code of Conduct, both of which mandate that environmental legislative requirements are met and that employees work to minimize Tecan's environmental impact, and both of which are publicly available. The Product Environmental Compliance policy and facilities management systems and ambitions reflect Tecan's support of UN SDG 12.4, to "achieve the environmentally sound management of chemicals and all wastes throughout their life cycle…" and UN SDG 12.5, to "substantially reduce waste generation through prevention, reduction, recycling and reuse."

The Factory in the Forest

The acquisition of Paramit Corporation and its affiliates in August 2021 brought an exceptionally green building into Tecan's portfolio, the award-winning "Factory in the Forest." Consciously designed to connect the building's occupants to nature, the factory optimizes use of indigenous plant life to create a unique workplace that also maximizes energy efficiency, water efficiency and use of natural light. With trees surrounding and even inside the building, the greenery provides protection from the sun, and roof gardens as well as a courtyard linking the office and production areas enable employees to directly access this environment. As the building's architects have noted, "Forests, critical for both macro- and micro-climates, are also vital for our psychological well-being", a concept further explored in a book about the building. Building

technology includes an innovative chilled-water radiant floor cooling system that is twice as energy efficient as conventional air conditioning, and dimmable daylight-responsive LED lighting as well as individual task lighting, which complement the diffused natural light to ensure an evenly lit work environment. A louver canopy provides shade and reduces energy consumption, and rainwater is collected and used for landscape irrigation. The "Factory in the Forest" is certified to the ISO 14001 standard. Tecan's ISO 14001 certifications are shared on tecan.com.

Matching the building's positive environmental impact features, in 2024 steps were taken to reduce waste onsite including the decision to remove all single-use plastic from the canteen, and to encourage colleagues to use reusable water bottles and carrier bags.

Climate Mitigation

In 2020, Tecan completed a product carbon footprint of our flagship Fluent™ automation workstation and followed that by annually purchasing carbon credits to offset the emissions generated by production and shipping of the various models of the Fluent™. In 2021, the product carbon footprint of the Spark family of detection products was completed, and subsequently Tecan implemented an annual offset of production and shipping emissions. In 2024, a related amount of carbon credits has again been purchased, addressing slightly more emissions than it is estimated can be attributable to the products' production and shipping. The correlation is not direct, and reflects the value Tecan places on climate mitigation projects, which also have a significant positive social impact as well as a beneficial environmental impact. The descriptions of the projects previously funded by Tecan can be found in our 2022 Annual Report, and the climate mitigation supported in 2024 is described here.

CLIMATE SCENARIOS RISK ANALYSIS: GOVERNANCE AND STRATEGY

In 2024 Tecan completed its first climate scenarios risk analysis, with the assistance of external consultants. The results of this analysis are reported here, in accordance with the Swiss Ordinance on Climate Disclosures. In this Sustainability Report Tecan describes how climate impact has been identified as a material topic for Tecan, and how Tecan's Board of Directors and Management Board assess and manage climate related risks and opportunities through their role in the governance of Tecan's sustainability program. In 2024, preparing Tecan to more precisely manage its climate impact was included in the shortterm variable pay compensation criteria of Tecan's Management Board and all colleagues who have a variable pay component to their compensation. A robust data management process and platform supports further integration of climate scenarios analysis into business planning, and creates the possibility of implementing processes Tecan currently does not have, such as setting an internal price on carbon.

Physical risks and Transition risks

In January 2025, the European Union's Copernicus Climate Change Service (C3S) reported that 2024 was the first year in which the global average temperature clearly exceeded 1.5°C above pre-industrial levels. As global temperatures rise, the Earth becomes more likely to experience extreme climate events and prolonged periods of heat, rain, and drought. Thus, managing and mitigating these climate risks, as recommended by the Task Force on Climate-related Financial Disclosures (TCFD), is essential for longterm business resilience and sustainable growth. Climate change's impacts stretches beyond those only attributed to weather related events, and the TCFD categorize such risks into:

Physical risks: Physical climate change impacts can disrupt operations and lead to significant social and economic impacts. They can be divided into chronic risks, which are longer-term shifts in climate patterns (e.g., a sustained increase in average temperature) or acute risks, which are short-lived extreme weather events, such as tropical cyclones.
Transition risks: Transition risks are risks arising from the introduction of public policies, technological changes, and the shifts in market demand and investor sentiment needed to move to a low-carbon economy.

In 2023, Tecan began assessing climate resilience by conducting climate-scenario analysis to assess climate-related physical and transition risks and opportunities. This effort included conducting a scientific literature and policy literature review, benchmarking against peer organizations in the life sciences industry, and quantifying selected physical climate drivers using global climate models and transition scenarios developed by leading global institutions. The analysis has been discussed with relevant internal stakeholders in management, as well as day-to-day operations and risk managers to ensure the results are considered.

The scenarios

The analysis is rooted in the climate-scenarios derived by the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report. The scenario analysis is based on the two end-member global warming scenarios: i) low-emission scenario, an optimistic 1.5°C scenario that is

aligned with the goals of the 2015 Paris Agreement and ii) high-emission scenario, the 3°C to 4°C scenario that is likely to occur if global operations continue in a similar fashion as they do today, without a concerted effort to decarbonize regular business practices.

The physical risk modelling is based on scenarios from the IPCC and other leading climate modelling groups. The transition risk modelling uses scenarios from the Network for Greening the Financial System (NGFS). The transition scenarios from the NGFS are generated by coupling physical risk climate scenarios to transition models that assess impacts of different policy ambition, technology, and regional policy variation to derive economic and financial variables that can be used in this scenario analysis.

In general, Tecan's own operations are in scope of the analysis for both physical and transition risk quantification. For upstream and downstream operations, the first step was to qualitatively assess how these risks may impact Tecan's business. To align with the SBTi targets that Tecan has set and that were validated in 2023, the analysis focuses on the medium-term for 2030 and long-term for 2050. These two different time horizons are compared to the present as a baseline in the scenario analysis summarized in this report.

Table 1. Comparison of scenarios and assumptions used in the quantification analysis.

	Physical risks	Transition risks
Scenarios
Low-emission	1.5°C IPCC SSP1-2.6	1.5°C NGFS Net Zero and Below 2°C
High-emission	4.4°C IPCC SSP5-8.5	3.2°C NGFS Current Policies
Time horizons	2030 and 2050	2030 and 2050
Data sources	World Climate Research Program (CMIP6), IPCC	NGFS Phase IV Scenarios
Scope and assumptions	Revenue and Net Book Value of all Tecan's own production sites and warehouses, as well as revenues generated from leased operational facilities (24 sites in total)	Tecan's energy consumption by energy carrier and carbon emissions: Scope 1, Scope 2, Scope 3.1, and Scope 3 Transport (Scope 3.4. and 3.9 combined)

PHYSICAL RISK ASSESSMENT

Description of risks

A financial assessment of physical risks has been made, based on comparing Tecan's maximum exposure under two distinct scenarios: Tecan's present climate exposure, termed the baseline scenario, and the projected exposure until 2030 and 2050 under a 4.4°C scenario. This evaluation aims to quantify the highest potential climate risk exposure across Tecan's sites against different climate hazards. It is assumed that the Company's exposure in a 1.5°C scenario would align closely with the current baseline scenario, given the current rate of global warming. Therefore, the physical risk results focus on the 4.4°C high-emission scenario. Tecan is currently analyzing and evaluating the results of the assessment of exposure to climate related physical risk and associated financial impact.

Impact quantification

The impacts on Tecan's production and storage warehouse sites were evaluated as part of the physical risk analysis. This assessment considers pseudo-worst-case events because no mitigation activities have been included in the modelling and it also does not consider any changes to the business plan. The physical risks will vary significantly across Tecan's operations that span across the globe. Tecan is aware that when assessing climate risks, it's crucial to consider both current risks and those that are expected to undergo significant changes in the future. Table 2 shows the geographical change in risk from today to 2050 for the eight risk drivers that were modelled. The chronic and acute climate risks that were evaluated are described in Table 3.

From the geographical assessment, the physical risks that most impact Tecan's own operations are heavy precipitation, river flooding, and extreme heat. The regional assessment highlights geographies that are likely to face climate risks in the future. According to the assessment, Asia and the US are susceptible to multiple risks, a few of which are expected to be significantly worse in 2050 compared to today. The model predicts a higher risk of tropical cyclones in Asia and higher extreme heat events in the US and Australia with climate change in 2050. Analysing changes in exposure can provide insights into which regions may be most vulnerable to future changes and helps establishing a priority list for taking action. A good example is the sites in California, which are exposed to several physical risks with an increasing high-risk ratio. In Table 3, a more detailed summary including Tecan's mitigation strategies is provided for each climate risk driver.

Table 2. Geographic risk assessment. The risk ratio is a score of the level of risk based on the vulnerability of a given site for each hazard (very low: <0.25, low: 0.25 to 0.49, medium 0.5 to 0.74, high: >0.75).

	Aridity	Wet	Cold	Heat	Coastal flooding	Coastal storm surge	Tropical cyclones	River flooding
Country	Now 2050	Now 2050	Now 2050	Now 2050	Now 2050	Now 2050	Now 2050	Now 2050
Switzerland
Austria
Germany
United Kingdom
California (US)
North Carolina (US)
China
Vietnam
Malaysia
Japan
Australia

Risk classification (risk ratio): Very low (0-0.25) Low (0.25-0.5) Medium (0.5-0.75) High (0.75-1.0)

Table 3. Physical risk and risk mitigation related to a high emissions pathway (4.4°C, IPCC SSP5-8.5).

Physical risks	Description of business impact	Risk mitigation
Aridity	Although the risk for aridity might increase in the future, it is not significantly impacting Tecan's core business, making it a less urgent concern. Financial impact was calculated using the risk ratio of the maximum number of consecutive days when preci pitation < 1 mm in a year.	Implement water conservation measures, implement water-efficient technologies within the buildings (e.g., for cooling and cleaning, etc.), and develop a drought emergency response plan.
Wet	This risk driver poses a significant threat to assets, but there is not a lot of projected change. Thus, the risk is likely to remain manageable in the future. Financial impact was calculated based on the risk ratio of the annual maximum precipitation on a single day.	Develop flood emergency response plan (including evacuation procedures and communication protocols), implement flood protection measures (installing flood barriers or sandbags or constructing retention basins) and relocate critical equipment to higher floors/less
River flooding	Although it is considered a high risk, it is expected to remain manageable in the future. Financial impact calculations were based on the global river inundation depth (flooding).	affected area. It is important to also consider the impact on emp loyees, e.g., their accessibility to Tecan's site.
Cold	Climate change is expected to have a positive impact on the asset at risk for the cold spell climate risk driver. To calculate financial impact, the risk ratio associated with annual count when at least six consecutive days of minimum temperature are below the 10th percentile.	Ensure proper insulation of the buildings and equip ment to help prevent damage from the extreme cold and maintain heating systems.
Heat	Extreme heat is expected to increase with climate change, making it a critical concern. There are potential direct impacts on Tecan's business (e.g., energy pricing) as well as indirect impacts (e.g., productivity loss, emp loyee's well-being, etc.). To calculate the financial impact, the risk ratio associa ted to the annual maximum value of daily maximum temperature was used.	Develop a heat emergency response plan (communica tion protocols, procedures for protecting employees), ensure proper ventilation and air conditioning, regular maintenance of cooling systems, backup power sources and implement heat stress management programs (training on recognizing and responding to heat-related illnesses, providing access to cool water, monitoring employees for signs of heat stress).
Coastal flooding and storm surge	One site is at high risk for coastal flooding and storm surge and the risk is only expected to increase with climate change.	Risk has been already been resolved as operations have been relocated to other sites and this location has been shut down.
Tropical cyclones	The asset at risk for tropical cyclones is high and is expected to increase in Asia significantly with the impact of climate change. Financial impact was calculated based on the risk ratio associated with tropical cyclones that have a maximum sustained (1 minute) windspeed 10m above the surface.	Develop a tropical cyclones response plan (evacuation procedures, communication protocols, emergency contacts), implement protection measures (reinforcing doors and windows), regular maintenance and drainage systems, considering relocating critical things and pur chase hurricane insurance.

TRANSITION RISK ASSESSMENT

Description of risks

The risks and opportunities associated with transitioning to a lower-carbon economy are driven by coordinated global efforts to achieve net zero emissions by 2050, aligning with the Paris Agreement goals and pursuing significant decarbonization. This entails a swift transition to renewable energy sources, electrification, and stringent regulations to curb fossil fuel extraction and usage across various sectors and economies. Carbon pricing mechanisms are regarded as crucial drivers in this endeavor. Addressing mitigation and adaptation requirements to meet Tecan's SBTi goals may result in varied levels of financial impact, presenting both transition risks and opportunities.

Tecan has identified external factors that could lead to risks or opportunities in relation to the global transition. The financial assessment of transition risks involves comparing the Company's maximum exposure under two distinct business paths: one where we continue with business as usual (BAU), with unabated emissions and no climate change mitigation efforts, and another where operations align with our SBTi trajectories. These business paths have been evaluated against future projections outlined by the NGFS. NGFS envisions several global economic trajectories including one where low-emission objectives are met, consistent with the Paris Agreement, and others where these objectives are not met, leading to significant global warming. In the latter, high-emission scenario, physical risks outweigh transition risks due to limited policy, technological, and legal frameworks driving change. Consequently, further analysis has focused on the low-emission scenario, where transition risks are of greater concern.

For the qualitative assessment, a long list of transition risks and opportunities that may impact Tecan's business are provided in Table 4 and 5, respectively. In the case of the risks, possible mitigation actions are added.

Table 4. Long list of transition risks that may impact Tecan's business and associated mitigation actions.

Transition risk area	Description of the risk	Likelihood	Time	horizon Mitigation actions
Market	Rise in raw material costs The escalating taxation on CO₂-intensive materials and the growing expenses from suppliers (due to their own transitions) lead to a substantial rise in raw material prices.	High	2030 to 2050	1) Diversification of Suppliers 2) Long-Term Supply Contracts 3) Adoption of Sustainable Materials
Market	Increase in electricity prices A structural shift in electricity production to renew ables, together with increased gas prices leads to increased electricity costs.	Medium	2030 to 2050	4) Investment in Energy Efficiency 5) Investment in Renewable Energy 6) Operations Optimization 7) Diversification of Energy Procurement
Market	Increase in transportation costs Higher costs for operations resulting from increased regulations on fuel/energy prices in the transportation sector.	High	2030 to 2050	8) Collaboration with Logistics Partners
Market	Changing customer behavior and preferences The company must pivot its attention to sustaina ble solutions in response to robust client demand for low-carbon alternatives. If the transition lags behind, clients might switch to competitors, result ing in Tecan losing market share.	Medium to low	2030 to 2050	9) Market Analysis and Customer Engagement 10) Lifecycle Assessments and Circular Economy Initiatives 11) Product Innovation and Development 12) Partnerships and Collaborations 13) Marketing and Branding Strategies
Policy and legal	Climate-related reporting and climate litigation Increasing costs (employees, consulting services, IT investments) due to additional reporting require ments and more rigorous due diligence processes. Not complying with new sustainability regulations, coupled with a worldwide transparency mandate, could result in substantial legal and reputational harm, leading to a loss of investors and customers on a global scale, along with associated financial setbacks.	High	Reporting already required	14) Regulatory and Compliance Monitoring 15) Risk Assessment and Gap Analysis 16) Engagement with Regulatory Bodies 17) Third-Party Verification and Audits
Policy and legal	Sustainable product regulation Emerging trends and regulations result in added expenses for the development and implementation of innovative technologies.	Medium	2030 to 2050	18) Strategic Research and Development (R&D) Investment 12) Partnerships and Collaborations 19) Dedicated Sustainability Innovation Team 9) Market Analysis and Customer Engagement

Policy and legal	Payments for GHG emissions leading to cost increases	High	2030 to 2050	20) GHG Emissions Assessment and trans parency
	The introduction of any greenhouse gas (GHG) emissions payment, such as a carbon tax, direct emission charge, or emissions trading scheme, can lead to higher costs in the procurement of carbon-intensive purchased goods, manufacturing, and distribution activities.			4) Investment in Energy Efficiency 5) Investment in Renewable Energy 6) Operations Optimization 21) Carbon Offsetting and Removal Pro grams
Reputation	Decrease in stock prices Should Tecan decarbonize at a slower pace than its competitors and not achieve its SBTi targets, its reputational standing may be compromised, result ing in declining stock values.	Medium	2030 to 2050	4) Investment in Energy Efficiency 5) Investment in Renewable Energy 6) Operations Optimization 20) GHG Emissions Assessment and trans parency 21) Carbon Offsetting and Removal Pro grams

Table 5. Long list of transition opportunities that may contribute to Tecan's business.

Opportunity area	Description of the opportunity
Market	Higher revenue from source material modification Modifying material inputs to low-carbon alternatives or making changes to existing inputs can boost revenue by avoiding high carbon taxes or reducing operational expenditures (OPEX), respectively.
Market	Developing low-carbon solutions An increase in demand for low-carbon solutions reinforces Tecan's market share for those solutions that help to prevent and mitigate adverse effects of climate change.
Market	Supportive policies incentivize the use of electric fleet As a result of governmental decarbonization policies, economic incentives encouraging the adoption of electric fleets could lead to potential cost savings through the widespread adoption of electric mobility solutions.
Policy and Legal / Technology	Return on investment in energy efficiency Realizing returns on investments by implementing energy-efficient measures in building retrofits, optimizing production and distribution processes for efficiency, engaging in renewable energy power purchase agreements (PPAs), and incorporating self-generated electricity sources (such as solar, wind, district heating/geothermal) at relevant factories.
Policy and Legal	Policy incentivizes low-carbon energy Tecan makes use of low-carbon energy offerings where policies are introduced to incentivize the renewable energy sector. Tecan benefits from supportive local/regional/global incentives which can reduce operational costs.

Impact quantification

From the long list of transition risks that may impact Tecan, an additional assessment of financial impact was conducted for: payments for GHG emissions, increase in transportation costs, rises in raw material costs, and increase in electricity prices. Payments for GHG emissions were evaluated by assessing different carbon prices on scope 1 and 2 emissions. Increase in transportation cost and rises in raw material costs were assessed indirectly by assessing different carbon prices on scope 3.1 (purchased goods) and scope 3 Transport emissions to understand how potential carbon taxes may affect Tecan's supply chain. Two Tecan business paths were modelled under the different NGFS scenarios, looking at the risks associated with carbon taxes and energy prices in 2030 and 2050 for different Paris Agreement aligned NGFS scenarios (the NGFS "Below 2°C" scenario and "Net Zero 2050" scenario). These scenarios assume that global warming is limited through stringent climate policies and innovation, thus leading to many transition risks if businesses are not adopting net zero business practices. The total transition costs, the sum and splits of carbon costs and energy costs for the two business paths, showed that Tecan achieving its SBTi commitments results in much lower transition costs compared to the BAU business path.

Tecan is further analyzing and evaluating the results of the assessment of exposure to climate related transition risk and associated financial impact. Commitment to Tecan's science based emissions reductions targets is unchanged, and the work done in 2024 to build out a data management platform for data including emissions data will strengthen Tecan's ability to manage the risks and opportunities related to the transition to a lower-carbon economy.

RISK MANAGEMENT

In the physical risk and transition risk scenario analyses, the descriptions of how these climate related risks and opportunities were identified has been stated. The process of identifying Climate Impact as a material topic for Tecan is described in the Sustainability Focus Areas section of this report. The Climate Impact and Circular Economy sections of this report describe some of the steps Tecan is already taking to transition to a lower carbon economy and ensure our products are future fit in a world impacted by global warming. In 2024, customer interest in these topics increased noticeably, opening the way for potential future collaborations with those customers who are also working to transition to a low-carbon economy. For example, one customer is pursuing lower emissions shipping of products, and Tecan is delighted to be able to support in meeting this aim. Tecan's Sustainability Director participates in customer meetings and sustainability networks, ensuring that Tecan's ambitions regarding climate impact are understood and opportunities to work together in this regard can be pursued.

Tecan's global risk management process is described in the Governance section of this report and includes annual assessment of the likelihood of the climate related physical risks and transition risks detailed in the tables 3 and 4.

In 2025 it is anticipated that the data management platform implemented in 2024 will become more fully integrated into Tecan's business practices with the goal that in future scenarios analyses can be made, for example of the climate impact of various business decisions. This will enable Tecan to better include climate impact in the range of factors that feed into business decisions, and to make informed choices about pursuing lower emissions options where appropriate.

METRICS AND TARGETS

Tecan's primary metric relating to climate risk and opportunity is the Company's total greenhouse gas emissions, which are calculated annually in accordance with the Greenhouse Gas Protocol. In addition, Tecan tracks the percentage of purchased electricity from renewable sources and energy use at manufacturing sites. In 2025, energy audits will be carried out to enable energy saving measures to be implemented and related targets to be set.

As described in this report and previous annual reports, Tecan has near- and long-term scope 1, 2 and 3 absolute greenhouse gas emissions reduction targets that have been validated by the Science Based Targets initiative. In 2025, Tecan will work towards setting interim targets and calculating emissions from key emissions categories more frequently than annually.

Tecan engages with peers to share knowledge around managing climate impact, particularly through the Swiss MedTech industry Association. Engagement with suppliers includes requesting their carbon emissions reduction plan and providing advice and guidance where necessary for suppliers just beginning their carbon emissions reduction efforts; the Responsible Sourcing program carries out this work and tracks progress in this area. Employee engagement has included a detailed communications campaign when Tecan committed to the Science Based Targets initiative, with resources maintained on Tecan's internal communications platform including an interactive game providing colleagues with the chance to develop their own path to net zero greenhouse gas emissions. When interim emissions reduction targets are set and energy reduction measures are implemented, additional communications and materials will be shared throughout Tecan.*

CIRCULAR ECONOMY

A circular economic model is one in which the creation of waste is avoided, in contrast to the linear "take-makedispose" pattern of resource use seen more often today. Circular economy principles can be built into the design of products, as well as considered in their materials. The transition to renewable energy and materials underpins the approach. The need to transition to a circular economy is clear: every year, humanity uses more resources than the planet can regenerate, threatening the very ecosystems that enable life to flourish.

Tecan's main business activities are the design and development of innovative instruments, instrument components and modules, software, reagents and consumables for research, diagnostics and medical use and the execution of global sales and service activities. For instruments and components, focus is on final assembly, testing and packaging. The materials sourced for this are a large contributor to Tecan's scope 3 emissions; typical materials include steel, aluminum, plastic, small amounts of tin, and forestry products for packaging. In 2024, Tecan initiated a project to identify the % of recycled and recyclable content in the materials we source from our suppliers. This data, in combination with the information gathered in our detailed supplier qualification process, will enable Tecan to make informed decisions about the impact of materials purchased and to work towards optimizing the positive impact of the products we offer.

Many of Tecan's products are long-lasting, designed to be used for many years and this long product lifespan is supported by Tecan's service offerings. Nonetheless, there are opportunities to reduce Tecan's use of resources, including through eco-design.

^* References:

TCFD (2017), Recommendations of the Task Force on Climate-related Financial Disclosures, June 2017.

TCFD (2021), Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures, October 2021.

NGFS (2023), Network for Greening the Financial System Phase IV Scenarios, November 2023.

IPCC (2021), Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, 2021

Tecan Consumables

Tecan offers a broad portfolio of products including disposable pipette tips. Tecan is one of the few suppliers to leave it up to the customer, depending on the application, to decide whether steel needles are used for pipette steps. To do so, Tecan has two completely different technologies for liquid transfers. For applications where the risk of cross-contamination is only very minimal or even non-existent, it can make sense to use steel needles for reasons of sustainability, and some major customers choose to do this.

Tecan's products are deployed to a large extent in regulated laboratories and markets, which restricts what changes can be made to the content of products and can also restrict how these changes are made. These restrictions often apply also to the packaging that touches the product. There are also restrictions regarding product disposal, for example, plastics that have come into contact with certain medical samples are incinerated rather than recycled.

Tecan's consumables products, many of which come into contact with samples and by regulation cannot be reused and might even need to be treated as hazardous waste, are estimated to be Tecan's biggest source of plastic waste. In 2022 a team dedicated to these products was formed, taking on the task of reducing the environmental impact of this line of products, as part of the overall product management. This team has researched options for addressing plastic waste including the feasibility of takeback programs and recycling. An information sheet advising customers how best to recycle Tecan consumables is shared on tecan.com. Additionally, projects focusing on lightweighting existing products and reducing the impact of packaging continued to be pursued in 2024 and remain in focus for 2025. A key 2024 achievement has been the development of a tray that uses 40% less plastic, and the development of compact packaging that uses less plastic and reduces transportation volume by 50%. In 2024, the team worked with suppliers to identify which packaging received is FSC- (Forest Stewardship Council) certified, with the aim of maximizing FSC-certified packaging wherever possible.

Tecan's structured approach to managing the environmental impact of consumables, including packaging, is described in more detail on Tecan.com, with an overview given of our approach to consumables design, materials, manufacturing and supply, and use and disposal. In all areas, we prioritize innovation that is both forward-thinking and environmentally responsible. Through teaming up with forward-looking partners, Tecan's consumables offerings include cassettes made of recycled plastic that is also reclaimed ocean-bound plastic. This has the double benefit of avoiding the use of additional virgin fossil fuel-based plastic as well as keeping plastic waste out of the ocean.

Tecan Ecodesign

Ecodesign provides Tecan with further opportunities to reduce its environmental impact. Tecan's Fluent™ Automation Workstation incorporates a number of ecodesign features, including stand-by mode, which saves power when the system is not in use but allows it to be activated immediately, and "Zero-G", which reduces power to the motors when the system is on pause or within a run whenever an arm is not in use. The Fluent™ is an unusually quiet workstation, reflecting its efficient design: the field-oriented control protocol increases the efficiency of the motors by up to 80%. Waste segregation features allow for the separation and so optimal disposal of contaminated waste (plates and tips) versus clean waste (tip wafers and boxes), and efficient fixed tip washing protocols help to minimize the use of disposable tips.

Considering energy efficiency, materials, waste, and the opportunity to have a positive environmental impact is part of Tecan's structured research and development process, with a dedicated section of Tecan's "milestones" R&D review process focused on alignment with Tecan's sustainability strategy. In 2024, a checklist was added to this process and presented to R&D colleagues along with industry best practices in ecodesign including close collaboration with procurement colleagues and adopting a total cost of ownership approach when considering future products and materials. Through current and future activities, Tecan works to support UN SDG 12.2, "move towards a circular business model."

SOCIAL IMPACT

Tecan recognizes the significant responsibility it holds towards its employees, who are the cornerstone of the company's success. As Tecan serves highly dynamic healthcare markets with innovative and value adding products and services, our success and competitiveness rely on attracting and developing the best talents accessible to us at our sites around the world. Our slogan "Stay unique and make it count" is a clear testimony of our conviction. Our foundation is an open, diverse, and inclusive culture that emphasizes mutual respect and equal rights and opportunities for all employees. To uphold these values, our personnel policies are mandatory at all Tecan locations worldwide. National hiring practices ensure adherence to laws concerning gender equality and non-discrimination. Both Tecan managers and employees are expected to adhere to strict ethical standards, which are outlined in our Code of Conduct. These guidelines are part of the training requirements for all employees and are included in the Global Human Resources Management Policy, an internal document accessible to and applicable across Tecan.

BEING THE EMPLOYER OF CHOICE

Health and well-being

The health and well-being of our employees — whether physical, mental, or emotional — are of paramount importance to Tecan. We understand that work significantly impacts employees' health, which is why we offer programs and services designed to foster a healthy work environment, prevent illness, and support overall well-being.

In 2021, we introduced a program on our online learning portal to help colleagues build resilience during challenging times, and it remains a valuable resource. By 2023, we launched a senior leadership program aligned with our leadership principles to enhance psychological safety within teams, including sessions on self-respect, team respect, and the importance of rest and energy management. In 2024, we expanded our efforts with internal health and well-being posts, virtual sessions on mental health day, and a podcast featuring senior managers discussing mental health, all aimed at educating and raising awareness. Additionally, we introduced a training series to cascade content from the senior leadership program across the organization and launched the "WeCare" training for line managers to identify early warning signals, normalize mental health discussions, and address concerns, reinforcing our commitment to employee well-being.

To support employees' health and well-being, we are continuously improving our facilities. For instance, in 2023, we enhanced our Hamburg and Austria locations by refurbishing spaces, increasing natural light, and installing air conditioning in laboratories and production areas. At our Männedorf headquarters, the office space features heightadjustable ergonomic workstations, abundant natural light, and complimentary fresh fruit provided daily. Our efforts to improve the working environment have had a positive impact. In our 2023 global employee survey, 73% of employees confirmed that our facilities contribute to a good working environment, compared to 65% in 2021. The next survey to monitor progress is planned for 2025.

Across various global locations, we offer numerous sports opportunities, such as standup paddleboarding on Lake Zurich, badminton, futsal, and bowling tournaments in Malaysia, bike leasing in Germany and the UK, free yoga sessions in Männedorf, running competitions in China and many more. Every year, we organize an internal challenge, Tecan Gives Back, to motivate employees to engage in activities and collect points for a good cause.

Learning and development

One of Tecan's strategic initiatives is to foster, strengthen and enhance the capabilities of our people enabling them to reach their full potential. Through the Learning@Tecan offerings Tecan provides a diverse array of trainings aligned with our values and our leadership principles. Trainings are offered both internally and externally and they are delivered in various formats including instructor-led, virtual, and self-learning. Employees can select from a wide range of courses covering topics like Leadership & Culture, Skills Learning and Exchange@Tecan. The Learning@Tecan offering is continually updated to address the evolving needs of employees and the organization. It is also tailored to meet local requirements across our global sites. In 2024, we have optimized our interface introduced in 2023 to enhance scalability and support the learning of our employees globally. In line with our commitment to unleashing the full potential of our employees, we launched the program "Unleash – Your Journey, Our Commitment" in 2024. This program focuses on enabling potential, growth, and opportunities. Under the focus of growth, we started a campaign highlighting employees' ownership of their professional journey with concrete internal career examples. Addition-

ally, we have increased internally the transparency on open positions to boost advancement opportunities.

Operating in highly regulated sectors like diagnostics, Tecan places a strong emphasis on continuous professional development and training, which are essential for our business. Due to stringent industry-specific standards, we must adhere to guidelines set by various regulatory bodies and demonstrate that our employees possess the necessary expertise. With the support of a SAP-based system, Tecan ensures that training processes are consistently executed to a high standard across the company. Each employee receives a customized training profile, allowing both employees and line managers to monitor and update their training status. This system also ensures that training information is readily accessible for audits. Tecan is committed to the ongoing development and enhancement of this learning system to provide an effective performance record and offer employees optimal training opportunities. In 2022, Tecan extended the training opportunities by granting all employees access to a leading online training platform, along with 20 hours paid work time for personal development. In 2024, more than 1,800 of our employees utilized this opportunity collectively spending an average of 66 minutes per month on the online platform. Development opportunities at Tecan also include trainings conducted by Product Management, mandatory trainings assigned through the online Learning Services Organization platform, and external trainings organized and funded by line managers.

To drive change within the organization and further embed our Leadership Principles, we initiated a Senior Leadership Development Journey in 2023. The first year concentrated on "respect and brutal honesty," while in 2024, the focus shifted to "courage" and "curiosity." This initiative is designed to offer senior leaders transformational development opportunities, enhancing their leadership skills and equipping them to navigate uncertainties and guide their teams through change journeys. By encouraging leaders to step out of their comfort zones and explore new perspectives and approaches, the program aims to foster stronger collaborations and solution-finding across the organization. It also ensures that our leaders, both as a team and as individuals, take responsibility for further shaping Tecan's culture.

Tecan is dedicated to developing its top talent and future leaders through the global talent management program Next Gen Tecan, launched in 2019. This 18-24 month program offers selected employees a comprehensive learning experience within Tecan. In addition to workshops on various aspects of personal and professional growth, the program includes personal mentoring from a Management Board member. The second phase offers insights into different departments, sites, and regions, while the third phase focuses on specific practical projects sponsored by Management Board members. Since the beginning of the program, more than 20 colleagues have completed it successfully and many have already taken on larger responsibilities or roles within Tecan. The 2023 cohort continued with the talent program in 2024 with 12 participants.

To support personal growth and career development, Tecan offers a mentoring program accessible to all employees. In addition to the general program, special programs such as diversity mentoring are offered. The mentoring program assists employees in achieving their career objectives, providing practical advice, encouragement, and support, while also enhancing their skills and capabilities. Overall, it fosters networking within the Company and positively impacts leadership and social competences.

Tecan's annual performance review process is available to all (100%) our employees. Our line managers are strongly encouraged to seek employee input and provide regular feedback regarding performance beyond the formal review process.

Tecan is committed to providing high-quality apprenticeships to train future generations. At the end of 2024, there are 15 people participating in Tecan's Swiss, Austrian and German apprenticeship programs, contributing to UN SDG 8.6, which aims to "substantially reduce the proportion of youth not in employment, education or training."

Excluding apprenticeships, Tecan employees enjoyed an estimated average of 41 hours of training per employee in 2024, with a total of more than 19,000 hours spent on Learning@Tecan courses.

Gender Group	Average hours of training provided per employee	Average hours of training provided per employee including 20 hours Tecan Learning
Female	18	38
Male	24	44
Undeclared/unknown	29	49
Grand Total	21	41

Additional employee-related data is set out in the Data section of this Report.

DIVERSITY, EQUITY AND INCLUSION

Tecan is committed to fostering an innovative and positive workplace culture that not only enhances business performance but also has a beneficial social impact. A diverse and inclusive working environment is known to improve motivation and performance. When everybody feels safe and can bring their full self to work it increases productivity and innovation. As a global and highly innovative company serving research and clinical markets, it is important to Tecan to create an environment of trust where everybody can make their voice heard, exemplifying our corporate values in action. A well-defined Diversity, Equity and Inclusion (DEI) program is central to this effort. In 2023 we reached a significant milestone in Tecan's DEI journey by developing a vision, a strategy framework and a roadmap with actions for the upcoming years. The DEI vision aims to achieve Tecan's purpose by embracing uniqueness, providing an inclusive and psychologically safe environment where our actions drive equity to ensure our employees can feel a sense of belonging and make an impact. Tecan's efforts as an employer support UN SDG 5.1, to "End all forms of discrimination against all women and girls everywhere" and contribute to UN SDG 5.5, "to ensure women's full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life". They also support UN SDG 8.5, "to achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value."

In 2024, we have made meaningful progress toward the DEI vision, framework and the roadmap launched in 2023. We developed and launched a framework to empower our employees to create Employee Resource Groups (ERG) and foster collaboration across Tecan. This framework ensures a shared understanding of ERGs and their role, enabling them to succeed. As a result, two new ERGs were created and are described on the ERG page. Throughout the year we have collaborated with our ERGs to create awareness and educate our employees, leading to a well-balanced communication approach. Additionally, we established a DEI council comprising all ERG leads and sponsors to facilitate the exchange of experiences, learn from one another, and discuss potential improvements.

To enhance equity and consistency in our hiring process, we have implemented a new standardized recruiting guide for line managers. Our aim is to further promote fairness, ensuring that each candidate is evaluated with balanced consideration and given an equitable opportunity to demonstrate their qualifications. We also introduced a DEI Training to our leaders to emphasize the importance of DEI as a material topic and the foundation for us to remain innovative.

Tecan regularly conducts employee engagement surveys and attained particularly high scores on questions related to diversity and inclusion in 2023. 84% of employees said that people at Tecan are treated fairly regardless of their race or ethnic origin, sexual orientation, age or their gender. Employee feedback confirmed that Tecan is succeeding in its aim to offer a positive culture and a workplace free from discrimination, in which each employee has equal opportunity to reach their full potential. In 2024, we conducted a pulse survey to assess our progress on psychological safety and inclusion. While we were encouraged by the high participation rate, the results highlighted the challenges we face. Moving forward, we aim to be more attuned to our employees' needs and enhance clarity in our communication. Our journey to improve inclusion continues, with the next full survey planned for 2025.

The strong message from employees that they feel secure to be themselves and can have a direct impact on progress at Tecan has been reflected in our articulation of what makes us special as an employer, "Stay unique and make it count." This statement is directed both to current and future employees in all our global locations.

Tecan's commitment to diversity and inclusion is incorporated in the Code of Conduct, Human Rights and Responsible Business Practices policy, and Supplier Code of Conduct, all of which are found on tecan.com, as well as in Tecan's internally available Employment Principles. In cases where these policies are contravened, employees and other stakeholders can report this anonymously via Tecan's independent third party whistleblower hotline, as described in the Governance section of this report. In

2024, 17 whistleblower hotline reports were made covering various topics, with one being DEI-related and under investigation.

To establish a solid foundation for a successful DEI program and continue cultivating a positive inclusive working culture we launched a Senior Leadership Development Journey in 2023. In the first phase it focused on bringing our Leadership principle of "Respect and Brutal Honesty" to life by providing learning on how to create psychological safety, how to build an open feedback culture, and improving awareness of how to use and give space in a business context. In 2024, we continued the journey centered on our leadership principles of "Courage" and "Curiosity" encouraging leaders to embrace new perspectives and explore innovative approaches. This experience strengthens cross-departmental and regional collaboration, equipping leaders to handle uncertainties and dilemmas. As a result, our leaders are now more interconnected, fostering an inclusive culture and empowering them to cascade these principles throughout the organization.

Tecan aims for greater diversity in senior management, and in recent years initiatives have been introduced that are known to increase gender equality in this regard, including:

Flex-time, allowing employees wherever possible and subject to local law, to choose when their required worktime is completed.
Support of part time work, which encourages equal sharing of caregiver responsibilities.
Diversity mentoring, a global program designed to embrace, support and empower diversity by matching selected candidates with members of senior management who receive training for this program.
Diversity measurement and monitoring, initiated 2024 to track and analyze diversity across genders, generations, and cultural backgrounds, providing insights to enhance representation within the organization.

Tecan joined Advance in 2020 and is therefore able to offer employees access to the Advance cross-company exchange and mentoring program as well as to research and events offered by the association. The goal of Advance is to "reach a sustainable minimum of 30% female representation at all management levels across all member companies by 2030." Tecan is supporting the effort by having a 29% female representation across all management levels, with representation at 50% in the Board of Directors, 33% in the Extended Management Board and an overall female representation of 44% across the globe.

An equal pay audit conducted in 2021 and verified by an independent third-party auditor showed no gender-based inequality in pay at Tecan in Switzerland, and it is anticipated that similar audits will be carried out in additional Tecan locations in future years, beginning with Germany and Austria. In 2024 we initiated this journey by starting to build a job architecture and leveling roles.

TECAN'S EMPLOYEE RESOURCE GROUPS

At Tecan, Employee Resource Groups (ERGs) play a crucial role in fostering an inclusive workplace. Founded on shared identities, interests, or backgrounds, these groups provide both new and longstanding employees with welcoming communities and opportunities to network. By cultivating an environment where individuals can learn, grow, and support each other, ERGs contribute to raising awareness and educating employees about issues such as microaggressions and biases, thereby strengthening allyship across the organization.

Employee Resource Group: Te-CAAP

Te-CAAP (Tecan Committee of African American Professionals) champions a positive and inclusive environment for all African diaspora employees. Its mission is to foster education, discussion, and dialogue among colleagues, inspire awareness and growth within the company, and support local communities, while also incorporating social outings for fun. Te-CAAP invites all Tecan colleagues to participate in its initiatives and events, promoting a diverse and supportive workplace.

In 2024, Te-CAAP, in collaboration with the On the Same Page Book Club, organized a Dream Big Children's Book Drive in honor of Martin Luther King Day, partnering with the non-profit Book Harvest. Black History Month was celebrated with participatory events including a Bingo Scavenger Hunt, with the chance to win prizes while learning about Black history. Juneteenth was recognized by sharing information about the event's historical and contemporary significance.

Employee Resource Group: Women Empowering Women (WEW)

Founded in 2021, the Women Empowering Women (WEW) ERG has grown to 37 members from Tecan US and other regional organizations. WEW actively engages on Tecan's internal social media to celebrate various awareness days and months, and hosts bi-monthly mixers for networking, support and learning. In 2024, WEW organized participatory events for Mental Wellness Month, International Women's Day, International Women in Engineering Day and Women's Equality Day, and supported 'Dress for Success' through a Community Outreach Effort. As with Te-CAAP, WEW events are open to all Tecan colleagues and significantly contribute to the positive workplace culture Tecan strives to uphold.

Employee Resource Group: Te-Proud

Te-Proud, an ERG established in 2023, is dedicated to fostering a safe, inclusive, and supportive environment for LGBTQIA+ employees and allies. By enhancing visibility, awareness, and education, Te-Proud empowers LGBTQIA+ colleagues and allies, strengthening Tecan's culture of diversity, equity, and inclusivity. During Pride Month, Tecan employees participated in the Hamburg Christopher Street Day (CSD) demonstration, the German counterpart to Pride, as well as holding a group interview to discuss fostering an inclusive workplace and identifying areas for improvement. These discussions have offered an invaluable platform for LGBTQIA+ employees and allies to share experiences and seek guidance.

Employee Resource Group: Te-CareGiver

Launched in 2024 in Switzerland, Te-CareGiver supports employees balancing work with caregiving responsibilities. Te-CareGiver empowers caregivers by providing education on managing childcare, eldercare, and work-life commitments, and connecting them with resources for well-being and professional growth. Members can join Experience Sharing Sessions to gain strategies from experienced caregivers on balancing work and personal life. Additionally, members have access to a curated collection of books, podcasts, events, and other resources tailored for working caregivers.

Employee Resource Group: Culture

Founded in 2024 the Cultural Employee Resource Group celebrates and promotes the rich cultural diversity of our organization. This group supports members' professional growth and fosters an inclusive environment. By leveraging the unique perspectives and talents of its members, the Cultural ERG aims to contribute to Paramit and Tecan's mission, driving innovation and success.

Community Engagement

In 2024, Tecan reinforced its commitment to community engagement and inclusivity through diverse local initiatives and sponsorships. In Switzerland, Tecan participated in the Bike to Work campaign, promoting sustainable transport and healthy living at its Männedorf and Nänikon sites. This initiative encouraged fitness and team spirit among employees. Tecan also supported young athletes, sponsoring members of the Swiss Fencing National Team as well as floorball player Ruven Schneider. Inclusivity was highlighted through Tecan IBL's sponsorship of the Disability World Games, where employee Torsten Terkamp excelled with Paradarts Germany, winning 23 trophies. Additionally, Tecan sponsored local sports events and clubs including FC Männedorf, the Waldlauf in Männedorf, and the Handball Club Stäfa Schülerturnier. Additionally, Tecan sponsored local sports events and clubs in Männedorf and the Electronics4you robotics challenge, underscoring the commitment to innovation and education.

Tecan's philanthropic efforts included the Emphysys team's care packages for homeless women and the Tecan US office's supply drive for Hurricane Helene victims in North Carolina. In Morgan Hill, Paramit organized charitable initiatives like a canned food drive, Adopt a Family program, Christmas toy drive, and warm coat drive, demonstrating Tecan's dedication to community support.

TECAN GIVES BACK

In June 2024, Tecan hosted its annual global employee engagement and fundraising initiative, Tecan Gives Back, promoting fitness, wellness, and mental health, and donating to four charities. Participants tracked activities using the Wellable app and shared stories and photos on Viva Engage, allowing global colleagues to connect and support each other. Participation in Tecan Gives Back grew in 2024, driven by 48 local events across 15 countries, marking the first time all 27 Tecan offices worldwide joined the challenge.

The Swiss Cancer Foundation

As a small, agile foundation, the Swiss Cancer Foundation is committed to fighting cancer with a focus on innovation and measurable impact. It prioritizes projects with significant potential for innovation and also supports individual institutions and other cancer organizations.

European Liquid Biopsy Society (ELBS)

The ELBS collaborates across academia, clinical settings, industry, and government to advance liquid biopsy research, initially targeting cancer, with plans to expand into other disease areas.

CDH International

CDH International operates in several countries, including the United States, Switzerland, Hong Kong, and Singapore, supporting thousands of patients and families in over 80 nations affected by Congenital Diaphragmatic Hernia (CDH).

World Land Trust

World Land Trust is an international conservation charity dedicated to protecting the world's most biologically significant and threatened habitats. Through a network of partner organizations, the trust funds the creation of reserves and provides permanent protection for these vital habitats and their wildlife.

HEALTH AND SAFETY

Tecan's main business activities are the research, design and development of our products, the final assembly of these at our production sites, and the related sales and service activities. Tecan markets products directly to end users, and as an original equipment manufacturer (OEM) Tecan also develops and manufactures OEM instruments, components and sub-modules. The products manufactured by Tecan are used in laboratories for life science research, in applied markets and in clinical diagnostics as well as in the medical area. The largest product group comprises laboratory automation platforms, benchtop instruments, as well as instrument components and sub-modules. "Health and Safety" in this context refers to the working conditions Tecan provides, including the prevention of physical and mental harm to workers as well as the promotion of workers' health. It includes the effective management of health risks and issues and programs regarding occupational health and safety, and employee well-being.

Tecan has a Global Environment, Health and Safety (EHS) office reporting to the Executive Vice President, Operations. This office manages the environmental impact of Tecan's sites and the occupational health and safety of all stakeholders along the entire value chain, and is responsible for the implementation of Tecan's Global EHS policy, which can be found on tecan.com. This policy is supplemented by Tecan's Global EHS Management System which is based on ISO 14001 and ISO 45001 requirements. In 2023, Tecan's Männedorf headquarters were certified to these ISO standards. The management system sets the governance and provides a framework with detailed standard operating procedures (SOPs) such as EHS roles, responsibilities and authorities, risk assessment, emergency preparedness and response or internal audit program. This helps to prevent and mitigate systematically any danger and risk and to facilitate continuous improvement. The documents are stored in Tecan's internal documents management system (TMS), which is available to all employees.

The day-to-day implementation of the Global EHS policy is led by the local EHS Management Representatives. For the majority of Tecan manufacturing and development sites this is a EHS subject matter expert (SME). In other sites it is led by local site managers. Tecan at a minimum meets the legal health and safety standards in every location in which we operate. An ongoing global program is underway to ensure complete alignment of local imple-

mentation with the global standards and to bring additional benefits of best-practice and knowledge sharing. The Head of EHS Office conducts an on-site EHS assessment at each site to identify best practices and gaps compared to the internal standards. In 2024, the sites of Tecan IBL in Hamburg and Tecan Paramit US in Morgan Hill have been audited. All Tecan employees (100%, 3,341) and workers who are not employees but whose workplace is controlled by Tecan benefit from Tecan's approach to health and safety.

On an annual basis, risk assessments are carried out and/ or reviewed by local SME to identify potential risks at the workplace, taking into consideration routine and non-routine activities, normal operating conditions, shutdown and startup conditions, and emergency conditions. Risk management activities are executed, coordinated and reported by employees with management function, with the involvement of a risk management team. In the event of special hazards, an EHS specialist with the necessary expertise must be consulted. The process follows the steps of risk identification, risk estimation, risk evaluation and risk control. Whenever possible, risk control measures consider the hierarchy of controls. Through this process, no work-related hazards that pose a risk of high-consequence injury have been identified. The assessments are reviewed regularly, in the event of any relevant change to the workplace, and after any incident in the area. Incidents in the form of work-related injuries and ill health are investigated by the sites and corrective measures to prevent recurrence are defined, implemented and their effectiveness reviewed by a team usually made up of the employee concerned, their line manager and the local safety officer. Relevant deviations are communicated in order to be able to learn from these and to raise employees' awareness.

Tecan encourages effective collaboration, consultation and active participation of employees for example in workplace risk assessment, continuous improvement activities, safety committee meetings, and training for emergency responses, thus leveraging their knowledge and experience to continuously further improve safety culture and performance. Should an unexpected health or safety situation arise, Tecan employees are encouraged to report this to their line manager or site EHS manager. In this same way, an employee could choose to remove themselves from a situation they felt could cause injury or ill health, without fear of reprisals. Anonymous reports can always be made via Tecan's whistleblower hotline, which is described in the Governance section of this report. In Tecan's 2023 global employee survey, 89% of respondents reported that "this is a physically safe place to work". The survey had a response rate of 92%.

Employee representatives, works councils and government agencies such as the Swiss Accident Insurance Fund (Suva) actively help to shape Tecan's local EHS measures, are involved in decision-making processes and, together with the organization, also evaluate the effectiveness of the measures taken. Works council and employee representatives are part of formal joint management-worker health and safety committees which according to global procedures have to meet at least once a year. These committees are chaired by the site manager and are used to monitor and discuss performance and deviations (e.g. incidents, non-conformities), and define tasks and measures. The committee has the authority to make site-relevant decisions regarding health and safety and the EHS management system.

EHS competence is key to embedding a Group-wide EHS culture and achieving EHS objectives. All employees and employees of third-party companies must be aware of their individual EHS responsibilities and their impact on everyday work. In addition, they will be effectively trained. The EHS trainings concept is based on the legal requirements and regulates what, who, when and how training takes place. This includes but is not limited to e.g. EHS induction training, EHS workplace instructions, EHS processes. Refresher training is provided at regular intervals as required by law or at appropriate intervals.

In the first quarter of each year, the EHS management system is evaluated by the EHS office, which reviews EHS performance, deviations and lessons learned, risks and opportunities and the adequacy of resources, among other things. The results are shared and reviewed by Tecan's CEO and Management Board and actions are defined to ensure continued suitability, adequacy, and effectiveness of the management system.

Quantifiable data relating to Tecan's Health and Safety performance is shared in the Data section of this report. Tecan's Health and Safety certification is shared on tecan.com.

CUSTOMER SATISFACTION

For Tecan, our customers and partners are at the core of all business activities. A satisfied customer base is an important cornerstone for Tecan's long-term growth and purpose of scaling healthcare innovation globally. Understanding what matters most to our customers and driving continuous improvements is essential to build trusted partnerships and ensure high satisfaction levels and loyalty to Tecan.

Regularly assessing customer satisfaction (CSAT) and customer loyalty is deeply embedded in Tecan's business practices. From a process perspective, CSAT is defined through a dedicated Standard Operation Procedure as part of Tecan's After Sales Care process architecture. Furthermore, ambitious CSAT KPIs are defined as company-wide variable pay targets. The SOP describes different modalities for assessing CSAT, including relational as well as transactional

customer satisfaction surveys, which are conducted regularly and the results of which are analyzed and shared with the relevant stakeholders. The surveys show that the vast majority of customers are satisfied with Tecan's products and services, more than 90% describing themselves as "very satisfied" or even "completely satisfied". These measures also have a high correlation with customer loyalty.

It is critical for Tecan that CSAT results indicating low satisfaction are acted upon in a timely manner to quickly mitigate possible business impacts. Tecan's after installation CSAT process therefore provides concrete guidance for customer follow-up for low satisfaction cases.

In addition, longer-term process improvements are driven through the annual strategy deployment cycle reviewed quarterly by the Management Board. Tecan's commitment to high customer satisfaction is central to our customer promise and sustainable business growth, and Tecan has the tools and processes in place to govern these activities in a measurable way, with defined responsibilities, and with a clear visibility to the relevant stakeholders.

GOVERNANCE

Tecan's corporate values of trust, highest standards and ambition are the cornerstones of our business and provide the framework for Tecan's culture. Our customers, investors and other stakeholders trust Tecan to act responsibly and ethically as we meet our commitments to them, and our strong corporate governance processes ensure that this trust is honored. As well as reaching highest standards with our products, we work to provide reliable high-quality service to our stakeholders across all business areas, ensuring their data is secure, business risks are anticipated and proactively managed, and that any feedback provided is responded to appropriately.

GOVERNANCE AND ETHICS

Code of Conduct

Tecan's good governance and ethical practices are reflected in the Organizational Regulations and Tecan's Code of Conduct, available on tecan.com. Tecan's Code of Conduct is binding for all employees, managers and Board members. In this Code, Tecan undertakes to maintain the highest standards in its business activities and to respect ethical values. The Code of Conduct was drafted by Tecan's General Counsel in accordance with industry best practice standards. With the Code, Tecan aims to document internally and externally that the Company is a credible and reliable business partner and employer in all situations. The Code promotes compliance with standards on occupational health, safety and the environment, provides instructions on ensuring data protection and handling confidential information, and requires accurate and timely communication of information and careful logging of relevant meetings and processes by Tecan staff. The Code also stipulates compliance with competition law as well as national and international trade law for the import and export of products. It also includes a zero-tolerance policy toward bribery and corruption and guarantees anonymity for whistleblowers.

Line managers are responsible for ensuring that all their staff know and understand the content of the Code of Conduct. The Code is available in English and German as well as seven other languages, including Spanish, Chinese and Japanese. By providing these different language versions, Tecan wishes to ensure that this important document is understood by employees all around the world. All employees globally must attend and successfully complete a training course on the Code when joining Tecan, and then every two years following. As of 31 December 2024, 96.3% of all employees who have access to the Learning Services Organization (LSO) learning platform, and 75.4% of all contractors at Tecan who have access to the LSO learning platform, had completed the Code of Conduct training. Just over 40% of Tecan employees have access to a learning platform that is separate to the LSO and carry out their Code of Conduct training there. Our training % data currently doesn't include these employees and we expect to have combined training data in future. For all employees, for more advice and guidance on the Code of Conduct employees are encouraged to discuss with their line manager, and concerns can be raised anonymously via the whistleblower hotline. Tecan's LSO use is tracked per individual, and managers verify that assigned trainings have been completed regularly and at a minimum prior to each employee's annual performance review discussion. Mapping of individual LSO training completion to each employee's employee category and region is not carried out due to capacity constraints and a preference to address this topic at the individual level.

Tecan has established several organizational control mechanisms with the aim of ensuring good governance and ethical behavior. The Internal Audit department has the task of periodically assessing the effectiveness of the internal control system. The internal control system consists of all organizational measures taken by the Company in order to maintain the effectiveness of its operations, protect the corporate resources, appropriately manage the risks and ensure compliance with laws and regulations, while always keeping a strong focus on the trustworthiness of the financial reporting. Internal Audit has the power to check and verify processes, systems, management activities, projects and contracts, acting as a supervisory body independent from operations and is reporting directly to the Audit Committee of the Board of Directors. In the year under review, the Audit Committee and Internal Audit held several meetings. The department is subject to the international standards for internal auditing.

Tecan has not been involved in any significant instances of non-compliance with laws and regulations during the reporting period, including legal cases, rulings or other events related to corruption, bribery, anti-competitive behavior, anti-trust, or monopoly practices. No fines or non-monetary sanctions were imposed on Tecan or paid by Tecan in 2024, and no contracts with business partners were terminated due to violations related to corruption.

Whistleblower hotline

Tecan employees and third parties can report possible events of misconduct via a third party-managed whistleblower hotline, accessible at tecan.com. This whistleblower hotline also functions as a channel for filing grievances. This dedicated mailbox and multi-language telephone hotline is run by EQS, a specialized provider of compliance solutions. Reports can be filed anonymously if preferred and all complaints are reviewed by Tecan's Compliance department, discussed with top management and addressed as necessary. The EQS platform ensures the highest standards of confidentiality and anonymity as well as a secure communication between the whistleblower and the members of the Compliance department of Tecan in charge of investigating the issues reported. Tecan updated internal procedures and training modules in order to take into account opportunities and obligations related to the whistleblowing reports delivered over the EQS tool.

Tecan received 17 reports via the whistleblower platform in 2024, which corresponded to 15 cases. Of these, three cases progressed to in-depth investigation and corrective actions. The rest pertained to HR and behavioral topics or simple advice. To date, nine cases have been resolved whilst eight are still in progress. The higher number of reports received in 2024 in comparison to the six received in 2023 has been attributed to a global awareness-raising initiative within Tecan, increasing employees' awareness of the hotline. The anonymity of reporters is protected, nonetheless based on the topics reported it is reasonable to conclude that no reports were made to the hotline by parties external to Tecan.

Risk management process

To ensure sustainable corporate growth, it is crucial that any risks that could compromise this growth be recognized early on, assessed in terms of likelihood and consequences, and mitigated through an appropriate plan of measures. Tecan has a well-established global risk management process for this purpose with clearly defined roles and responsibilities at the Board of Directors, Management Board and other relevant leadership positions.

The process encompasses, among other factors, strategic risks, product risks, market and customer risks, occupational safety risks, risks relating to Tecan's social and environmental impact and risks associated with the impacts of climate change. It also focuses on political and economic developments as well as the possible impacts certain events may have on external partners such as customers or suppliers. Tecan continuously adjusts its risk management system in line with changes to the environment and takes current events into account in its risk assessment. Business continuity planning is designed to ensure Tecan's ability to withstand supply chain interruptions. The Board of Directors reviews annually whether the risk assessment of business activities is appropriate and whether it takes into account both internal and external changes. Where necessary, new measures to mitigate risk are implemented. Tecan's risk management system is also regularly audited by a key insurer, who attests to the instrument's high standard, enabling a premium reduction. Some of the company's employees hold risk management certification, so the company does not have to depend exclusively on external experts.

Anti-bribery and anti-corruption due diligence

Tecan carries out regular detailed screening of its distributors and has established a separate process with the TMS (Tecan Management System) directive Distributors and Intermediaries Anti-Bribery Due Diligence for this purpose. In particular, the TMS directive requires that all Tecan distribution partners and their owners, directors and employees refrain from bribing representatives of governments or state-owned or private enterprises, or from taking bribes. It does not matter whether bribery is prohibited, tolerated or allowed in the countries in which business is being done. Bribes are prohibited irrespective of whether a bribe is connected to a specific act or omission or is granted or received with a general view to the future execution of duties. Bribes do not only involve cash payments but also mean, for instance, lavish gifts, hospitality and entertainment. Distributors and intermediaries need to ensure that their representatives and their sales force are trained and adhere to Tecan's standards of doing business. Tecan's Compliance department closely monitors the compliance of the business run through dealers and distributors. In particular, activity is focused on ensuring that all third party intermediaries explicitly commit to our Code of Conduct, demonstrate a sufficient understanding of it and pass background checks without issues of concerns (legal disputes, criminal investigations, etc.). These steps are automated through the ethiXbase platform, which ensures a solid audit track of the checks performed. This platform allows a "real time" detection of unethical behaviors which may potentially have been reported regarding our dealers and distributors in the press or in the dedicated data banks.

Tecan annually assesses all operations for risk related to corruption (100%, 23 organizations – some smaller entities provided joint reports), and in 2024 identified no significant risk. Tecan only generates a smaller portion of its sales in countries that have an increased risk of corruption according to the criteria of the organization Transparency International.

Data privacy

Tecan is committed to handling all information (including personal, technical and commercial information) which employees, customers and other stakeholders entrust to it with due care, in compliance with applicable laws and solely for the purposes for which the information was provided or generated. When processing personal information, Tecan pays particular attention to the principles of transparency, lawfulness, proportionality and accountability. Tecan's Data Protection Governance Structure includes a certified Group Data Protection Officer who directly reports to Tecan's Management Board. Data protection is also supported by an online, easily accessible Data Subject Request Portal through which data subjects can invoke the rights they enjoy under applicable data protection laws.

Tax policy

Tecan's strict adherence to the Company's ethical code, respect for the environment, and full compliance to applicable laws and regulations in all the jurisdictions where Tecan operates applies also to the Company's approach to taxation. This is set out in the Tax Principles, shared here and also available at tecan.com. The Tax Principles are owned by Tecan's CFO, who is responsible for ensuring compliance with these principles. Risks associated with tax are included in Tecan's risk management process, and concerns can be raised through the whistleblower hotline.

TECAN'S TAX PRINCIPLES 2024

Tecan is a leading global provider of laboratory instruments and solutions in biopharmaceuticals, forensics and clinical diagnostics. It is our mission to contribute to the quality of life of humankind by enabling our customers to make the world and our community a healthier and safer place. We live our core business values "Ambition", "Highest standards" and "Trust".

Our behavior is governed by strict adherence to our ethical code, respect for our environment, and full compliance to applicable laws and regulations in all the jurisdictions where we operate. This is no different when it comes to taxation, which is an integral element of our overall corporate social responsibility. Our Tax Principles are in line with our core business values and are designed to support Tecan in delivering its strategic and sustainability ambitions.

Principle 1 Sustainability & Governance

Tax is a core part of Corporate Responsibility and Governance and is overseen by the Board of Directors (the "Board"). The Group's Tax Principles are in line with the goals of the OECD/G20 Base Erosion and Profit Shifting project and with its core principles, coherence, substance and transparency as well as consider economic and social impacts.

The Board of Tecan yearly reviews the effectiveness of the Tax Principles and maintains a sound system of risk management and internal control. The Board is updated annually on tax risks and adherence to the Tax Principles.

Our Tax Principles are mandatory and apply to all the entities and employees of the Group.

Principle 2 Compliance

We comply with the tax legislation of the jurisdictions in which we operate, adhering to both, its letter and spirit, and pay the right amount of tax at the right time. All tax returns, claims, elections, disclosures, and payments shall be made accurately and on time.

The Tecan Group Transfer Pricing Policy is defined and implemented based on the internationally accepted arm's length principle, as described by the international tax conventions and by the OECD Guidelines, and as implemented in local rules and regulations. Transfer pricing methods follow a thorough analysis of the functions, risks and assets of the parties to the transaction.

To ensure that the Group complies with local tax laws in the jurisdictions in which it operates and that solid and responsible tax planning is undertaken, we seek for adequate personnel, resources, up-to-date expertise, training and systems, and develop tax awareness across Tecan functions and businesses. Regular trainings are provided to Tecan employees with respect to the relevant tax policies.

The Group Tax department under the responsibility of the CFO is managing the Group's tax risks. The Group Tax department ongoingly monitors and flags tax risks to the relevant party within the organizational structure. In addition, to mitigate tax compliance risks, Tecan has implemented standardized processes that regulate essential aspects of tax compliance. These processes identify the people and areas responsible for each phase of tax management and specify all activities to be carried out for the preparation of tax returns and self-assessments.

Due to their nature, tax matters can be very complicated especially in multi-jurisdictional contexts. Whenever there exists significant uncertainty around a tax issue, including different interpretations of the applicable law, Tecan will seek advice from external advisors and/or from tax authorities in all circumstances where such clarification is possible.

Tax risk control and tax-related reporting are supplemented by procedures and all tax accounting and compliance matters are subject to regular internal and external audits that assure the integrity and reliability of the accounting information used in tax processes.

Principle 3 Business structure driven by commercial considerations

Our business structure is driven by commercial considerations, is aligned with business activity and has genuine substance.

Our tax planning is based on reasonable, solid interpretations of applicable law and is aligned with the substance of the economic and commercial activity of our business. We do not use tax havens or opaque corporate structures to hide or reduce the transparency of our activities.

Our Tax Principles extend to our relationships with employees, customers and suppliers. We do not engage in arrangements whose sole purpose is to create a tax benefit.

Principle 4 Constructive and Professional Relationships with Tax Authorities

It is the Group's aim to maintain constructive and professional relationships with local tax authorities, based on mutual respect, transparency and trust.

We are open and transparent with tax authorities, responding to relevant tax authority enquiries in a straightforward and timely manner to assist in the evaluation of tax liability. Our tax strategy is continuously aligned with instructions, regulations, and guidance of tax authorities.

We will not bribe or otherwise induce tax officials, government officials or ministers with the aim of obtaining more beneficial outcomes with respect to tax matters.

Principle 5 Transparency

We strive for a regular information to our stakeholders, including investors, employees, civil society and the general public, about our approach to tax and taxes paid. This includes:

We make our tax strategy public, including details of governance arrangements and our approach to dealing with tax authorities.
An overview of our group structure and a list of all entities, with ownership information and a brief explanation of the type and geographic scope of activities.
Annual information that explains our overall effective tax rate, together with information on our economic activity.

• Information on financially-material tax incentives where appropriate, including an outline of the incentive requirements and when it expires.

Disclosures are made in accordance with the relevant domestic regulations, as well as applicable reporting requirements and standards such as IFRS Accounting Standards. Tecan files yearly country-by-country Reports with the relevant tax authorities, which are exchanged with tax authorities in other jurisdictions based on international agreements.

PRODUCT QUALITY AND SAFETY

Tecan's main business activities are the research, design and development of own products, the final assembly of these at our production sites, and the related sales and service activities. Tecan markets products directly to endusers and as an original equipment manufacturer (OEM). The products manufactured by Tecan are used in laboratories for life science research, applied markets, clinical diagnostics, and medical devices. The largest product group comprises laboratory automation platforms, benchtop instruments, as well as instrument components and sub-modules. In addition, Tecan also develops reagents to bring full solutions to customers in certain areas. Customers depend on Tecan to produce solutions that facilitate reliable, reproducible results. As a business-to-business rather than business-to-patient company, Tecan does not handle patient data or clinical samples directly. Nonetheless, we never lose sight of the potential human impact at the end of the chain of activities we are a part of. Tecan's products are serving regulated applications and markets, yet it is important to Tecan to go beyond legal requirements and strive for excellence in product quality and safety. This has been one of Tecan's core competences since the Company's founding, more than 40 years ago. The Company's values: ambition, trust and highest standards, are embodied by Tecan's central Quality and Regulatory organization (QARA). Tecan's approach to product development is characterized by a deep understanding of quality and regulatory requirements globally. QARA colleagues collaborate with customers from an early stage, supporting the product development process in a series of structured stages that span the product's entire life cycle, up to the point where it is withdrawn from the market. Tecan's commitment to quality is described at tecan.com, with the Quality and Regulatory Solutions brochure at this link setting out the expertise that enables Tecan to build regulatory requirements into a product order and ensure optimal product quality. Our work in this area is governed by the Tecan Group Quality Policy and the supporting documentation. These internal documents are stored in Tecan's internal document management system, and accessible to all employees.

Tecan facilities are subject to a number of audits conducted by regulatory authorities, testing houses, monitoring and certification agencies, customers, and Tecan's own specialist teams. These experts inspect whether Tecan's facilities comply with country-specific regulations and the Company's internal standards for product and occupational safety, as well as health and environmental protection. These inspections also cover measures that Tecan has to implement if it fails to meet any requirements. In 2024, Tecan successfully hosted several external authority and QMS certification audits, all concluding with no major findings. Notably, our production facility in Penang, Malaysia underwent a US FDA inspection, resulting with zero observations. This achievement underscores our unwavering commitment to upholding high standards of compliance.

Tecan participates in the Medical Device Single Audit Program (MDSAP), which sets out a catalog of requirements for manufacturers of medical devices, drawn up by several participating countries. MDSAP aims to ensure that standardized audits are performed, in addition to covering all country-specific regulatory requirements. Thus, manufacturers of medical devices can gain access to several markets by means of a single audit. All (100%) of the Tecan production sites eligible to participate in MDSAP maintained certification in 2024.

Regulatory requirements are continually evolving globally. To ensure these requirements are understood and implemented correctly, Tecan maintains a robust program of regulatory intelligence monitoring. Through this program Tecan identifies new and upcoming drafts of regulations, participates in industry forums and on regulatory committees, and is an early adopter of new regulatory requirements affecting Tecan product lines.

Another focal point in Tecan's regulatory efforts is supporting customers in the Partnering Business by making key documentation available for authorization applications for new diagnostic products. Furthermore, Tecan builds strong, regulatory partnerships in order to guarantee successful marketing throughout entire product life cycles.

In addition, Tecan continues to be an early adopter of new or revised standards to ensure our own product lines and OEM partners remain compliant.

The Tecan parent company and all production sites are ISO 13485:2016 and ISO 9001:2015 certified, all sales subsidiaries operate under certified quality systems including ISO 13485:2016 and in many cases also ISO 9001:2016. Tecan QARA teams are continuing initiatives to address scalability of the Quality Management System based on scope of business at each Tecan entity and to harmonize processes for the digital age where appropriate. Tecan is well positioned and ready to implement FDA's updated Quality Management Systems Regulation incorporating by reference ISO 13485:2016 as the accepted quality system standard for medical device companies.

The matrix certification approach for market units in Europe, China and Australia contributes to the sustainability efforts of Tecan by enabling audits to be conducted through a reduced sampling plan rather than on a site-by-site basis each year, reducing both travel needs and associated carbon emissions. This coordinated certification method accommodates Tecan's current and future Group structure with an increasing number of subsidiaries, benefiting both customers and Tecan. In addition, Tecan's implementation

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of an electronic Quality Management System (eQMS) strengthens sustainability by reducing paper usage, streamlining document management, and minimizing energy and waste associated with traditional paper-based systems. The eQMS also supports more efficient processes and real-time tracking, further lowering resource use and contributing to a reduced environmental impact across operations.

Tecan follows a controlled process for product information and labeling that is mandatory for meeting a number of regulations and is described in the internal documents Global Product Labeling SOP and Development of APL Material. These documents do not include information about sourcing of product components. The Global Product Labeling SOP does include:

Internationally recognized hazard standards/symbols
Required regulatory information based on product type and areas of commercialization
Instructions for safe use of the product
Proper disposal of the product.

Tecan also has a post-market surveillance process that monitors and responds to input from regulatory bodies and any customer complaints or inquiries received. This is set out in the internal documents Customer Support: Helpdesk/Expertline and Complaint Handling Process SOPs.

QARA teams throughout Tecan ensure that the Global Labeling and Advertising SOPs and the post-market surveillance process are being adhered to in all (100%) cases. Customer concerns or questions regarding product information and labeling can also be addressed through customer sales contacts, Tecan's customer services, or Tecan's whistleblower hotline regarding environmental protection, handling of hazardous materials and their disposal, or endangering the health and safety of other persons.

In 2024, no such complaints were made to the whistleblower hotline and there were no incidences of non-compliance with the Global Labeling SOP. The post-market surveillance process functioned as intended: Tecan detected and voluntarily issued corrections to two product labels in accordance with these post-market procedures. In 2024, no incidents of non-compliance with regulations concerning the health and safety impacts of products and services were identified.

Tecan's QARA team is organized at Group level to ensure ongoing improvements based on changes in regulations worldwide and monitoring of product quality, and for addressing customer complaints. The Company performs a global management review every year in which relevant data from all Group companies are reviewed centrally. The process assesses whether quality management is still optimized and effective to the legal requirements and regulations for the products and services supplied by Tecan. Tecan undertakes this review with regard to the individual national markets as well as from a Group-level perspective, in this way, progress is evaluated.

CYBERSECURITY

Impact

By prioritizing cybersecurity and privacy of data, organizations can enhance trust, protect sensitive information, and maintain a secure operating environment. Cybersecurity is a material topic for Tecan, and includes implementing measures to ensure the confidentiality, integrity, and availability of data (e.g., customer and employee data), and protecting this data from unauthorized access, use, or disclosure. Some of Tecan's customers use certain products for purposes that entail the processing of personal data and sensitive health information. Tecan's services do not have the primary business purpose of processing such data on behalf of its customers. Nevertheless, Tecan may incidentally and unintentionally be exposed to such data. Tecan has processes and safeguards in place to address and mitigate the risks for the data subjects concerned in such instances.

Tecan embeds cybersecurity in its product development processes and business operations. Expert teams systematically manage information security and related risks throughout and coordinate, as needed, with Tecan's Group Data Privacy Officer.

Awareness

A key aspect of Tecan's cybersecurity strategy is raising awareness amongst all employees of the significance of a cybersecure environment. The foundation of a robust Tecan cybersecurity posture begins with educating our employees about potential cyber threats and the best practices to mitigate them. This is a critical element in protecting individuals and safeguarding digital assets of Tecan. We train employees with the aim of equipping them to recognize and respond appropriately to various forms of cyber threats, such as phishing, ransomware, and social engineering attacks.

We recognize that, even with the most effective preventive measures in place, cyber incidents can still happen. To address this, Tecan has a well-defined incident response plan in place. This plan outlines the steps to be taken in the event of a cyber incident, including how to contain the breach, assess and mitigate the damage, and notify affected parties.

Dedicated employees train to handle such emergencies by engaging in tabletop exercises; simulations of cyber attacks and incidents that provide hands-on practice and help them understand their roles and responsibilities during an actual cyber attack. A well-defined and practiced response plan will help us to minimize the impact of a cyber incident and expedite the recovery process.

Policies, directives and ISO 27001 certification

In the realm of cybersecurity, the implementation and adherence to robust policies and standards are fundamental to an organization's security infrastructure. These policies serve as the foundation for protecting against cyber threats and ensuring the integrity, confidentiality, and availability of data. A key component of these policies and standards is alignment with internationally recognized frameworks such as ISO 27001. ISO 27001 is a globally acknowledged standard for information security management systems (ISMS). It provides a systematic and well-structured framework that helps Tecan protect and manage its information through effective risk management. In 2024, Tecan achieved certification of compliance with ISO 27001, at a key site, demonstrating a commitment to maintaining a secure and efficient ISMS. Tecan's global alignment with ISO 27001 guidelines not only enhances our cybersecurity posture but also instills confidence amongst stakeholders regarding the safeguarding of sensitive data and information systems.

Data Privacy and Data Protection

Tecan is committed to upholding the highest standards of

privacy and data protection. In line with this commitment, Tecan embraces the principles of data protection laws such as the European Union's General Data Protection Regulation (GDPR), which represents a significant milestone in data protection laws. The GDPR sets forth rigorous guidelines and practices for the handling of personal data, ensuring the privacy and security of individuals within the European Union and the European Economic Area.

Tecan has a Group Data Protection Officer (GDPO) who oversees our data protection strategy and compliance with GDPR requirements. The role of the GDPO underscores Tecan's dedication to privacy and data protection. We continuously strive to maintain the highest level of data integrity and security, ensuring that our data handling practices not only comply with data protection laws but also align with the best practices in data protection.

Data governance for AI and AI guideline

Looking ahead, Tecan is actively embracing the potential of future technologies, with a particular focus on Artificial Intelligence (AI). As we venture into this domain, our approach is holistic, encompassing every aspect from governance to practical application. As we develop and deploy AI technologies, we keep ethical considerations and regulatory compliance front of mind. This includes establishing clear guidelines for AI usage, addressing issues such as data privacy, bias mitigation, and transparency in AI decision-making processes. At Tecan, we are excited about the future of AI and its transformative potential. Our approach is guided by a commitment to responsible innovation, ensuring that as we harness the power of AI, we do so with a focus on creating value for our customers and society at large.

IT at Tecan

IT systems are always in focus of potential cybersecurity events. Tecan's Global IT team operates a robust enterprise application landscape centered around an SAP core platform, which integrates sales, customer service, production, and financial processes into a unified system. Complementing this is the adoption of Microsoft M365 and cloud solutions, providing collaboration tools, secure communication, and additional flexibility to support modern business operations. Together, these platforms enable a comprehensive "business intelligence reporting suite" with integrated planning modules, such as those for human resources or budgeting. A continuous lifecycle for updates ensures that Tecan always has the latest software versions, thus limiting outages and helping avoid large-scale, expensive update processes with long test phases.

All main IT infrastructure services offered by the Group worldwide are outsourced and hosted to servers of an external service provider. The data is backed up redundantly, and the data centers are physically separated from one another and from the production sites. This enables Tecan

to minimize the risk of critical data loss and increase data security. Global IT support is also available for Tecan sites in all regions, thereby reducing outages.

Tecan carries out regular cybersecurity audits, and related training is mandatory for all Tecan employees, with employees in key roles or demonstrating need receiving additional training. In 2024, 96.3% of all employees with access to the Learning Services Organization (LSO) platform and 83.5% of all contractors with access to the LSO platform at Tecan completed Cybersecurity training. Just over 40% of Tecan employees have access to a learning platform that is separate to the LSO and carry out their cybersecurity training there. Our training % data currently doesn't include these employees, and we expect to have combined training data in future. The success rate of phishing simulations is tracked and forms the basis for follow-up where needed. This rate was satisfactory for Tecan in 2024 and is not disclosed as to do so is considered to be more likely to detract from rather than enhance Tecan's cybersecurity efforts.

Relevance to Tecan's products

Tecan continues to emphasize the importance of product security to ensure that customer use of Tecan products within a connected environment is not compromised and does not pose a security risk to end-user infrastructures. As the importance and benefits of global connectivity and open digital ecosystems become more widely appreciated, equally important is to develop secure digital offerings.

A Secure Software Development Lifecycle (SSDLC) process is essential so that security requirements are considered and introduced early on in product development and maintained throughout the product lifetime.

Tecan has identified IEC 81001-5-1: Health software and health IT systems safety, effectiveness and security Part 5-1: Security Activities in the product lifecycle as a stateof-the-art framework to ensure proper secure design of products. Tecan continues to work towards embedding 81001-5-1 requirements within the global Quality Management System. Of note within 81001-5-1, important techniques such as threat modeling, security risk assessment, security/penetration testing and vulnerability management will be further utilized in product development and lifecycle as standard practices. Respective measures and evidence will be part of R&D milestone documentation and templates.

Tecan's design and development process is being enhanced to further align with 81001-5-1 requirements and best practices. Additionally, the security risk management process will continually evaluate security risks at a product level to determine if there are changes within the security risk profile of Tecan products. Processes utilized for secure design and maintenance are also subject to authority, certification body and/or internal audit review. To date there has been no reported exploit of a Tecan product which represents a serious incident. Tecan's vulnerability management process will continue to monitor products for potential exploitability and is closely linked to remediation actions and improvements to further harden product's security.

In addition to process enhancements to meet IEC 81001- 5-1 requirements Tecan has conducted a portfolio evaluation and determined a product transition plan for existing products to become compliant with IEC 81001-5-1 as applicable. Product user information will continue to be enhanced to inform users how to setup Tecan products securely. Ongoing evaluation of new regional security regulations such as NIS2, Cyber Resilience Act will be incorporated into the respective processes accordingly.

INNOVATION

Tecan recognizes the importance of innovation to our long-term business success. In this context, "innovation" refers to product and service innovation, from improvements to disruptive or breakthrough innovations. This includes the R&D (research and development) activities undertaken to innovate products and services, as well as business model adaptations that might better satisfy customer needs and / or be aligned with sustainability challenges.

Software

Innovation is an area in which Tecan stands out, particularly with regards to software development. Tecan has created a software architecture that allows us to cater to customer needs across a range of application areas, reflecting our unique end-to-end "from research to the clinic" product capabilities. Our software offering is modular, able to span a breadth of usage from industrial large-scale workflow hardware solutions to smaller benchtop solutions, closer to the direct patient environment. This modularity

aspect of both hardware and software gives us the opportunity to use a common R&D and operational footprint in many different application areas, covering both Tecan's Life Sciences Business and the Partnering Business world.

Tecan develops digital solutions that meet the needs of the regulated IVD and research markets. New products have been commercialized (with a SaaS business model) in the areas of service and management of entire instrument fleets. Our latest offering is a completely new software suite for laboratory orchestration. Tecan provides software solutions to increase personnel and instrument effectiveness by orchestrating the entire laboratory workflow, including hardware and configurations in these labs for Tecan and non-Tecan instruments. An open ecosystem has been created that enables Tecan to be at the forefront of application method development, for example for research and pharmaceutical laboratories as they strive for efficiencies. This innovative solution offers great potential for further expansion and new solutions to support our customers' digital transformation journey.

Grassroots innovation and product development

In 2024, Tecan's grassroots innovation programs continued: the Time-boxed Innovations program, initiated in 2014, included several new approved ideas and resulting patent filings. In April 2024, Tecan held its second hackathon for employees, fusing the intensity of a brainstorming session, the dedication of a coding marathon and the spirit of innovation, bringing together the brightest coders from R&D. The primary goal of the hackathon was to foster collaboration among R&D teams and ignite their creativity, free from the constraints of daily routine. Eight teams with colleagues from five sites (Americas, Asia, Europe) were formed and worked together for three days, with the winning idea focused on a novel approach in the usability area. The event was a resounding success, generating great enthusiasm for future sessions.

Tecan's approach to innovation is reflected in successful product launches, with a key example from 2024 being the Resolvex i300.The Resolvex i300 is a solid phase extraction module revolutionizing proteomic workflows by consolidating sample prep, cleanup, evaporation and resuspension tasks into one seamless operation. Complemented by our innovative AffinEx™ affinity purification columns and digital tools like Introspect™ and LabNavigator™, Tecan empowers the transition to a fully automated, error-reduced, and ROI-driven lab environment.

Our new Spark© Cyto 3DAI analysis tool also reflects the way Tecan enhances existing products with innovation and cutting-edge technologies. This new software plugin enables 3D cell biology powered by AI, allowing the monitoring of key parameters for growing spheroids or organoids in real time.

During a Capital Markets Day in October 2024, Tecan previewed Veya, a multiomics liquid handling workstation that simplifies lab automation and boosts productivity. Officially launched at the Society for Laboratory Automation and Screening (SLAS) international conference in San Diego, USA, in January 2025, Veya provides effortless automation by overcoming key barriers in lab automation.

R&D Processes

Tecan's R&D development process was previously improved by integrating sustainability topics into existing stages such as the milestones review meetings, which is where project alignment with Tecan's sustainability strategy is described. This alignment includes consideration of opportunities to design out waste, specify the use of materials with recycled content, and adopt lower impact packaging. In 2024, a checklist was added to this process and presented to R&D colleagues along with industry best practices in ecodesign including close collaboration with procurement colleagues and adopting a total cost of ownership approach when considering future products and materials.

As described in the Cybersecurity section of this report, R&D processes include strengthening cybersecurity controls, to ensure compliance with IEC 81001-5-1.

Protecting our intellectual property is of importance in ensuring that the development of new products and technologies gives Tecan a sustainable advantage in the market. Tecan registers patents on relevant developments for the most important markets in a timely manner and has several hundred patents in various patent families. In 2024, Tecan filed 18 patent applications on new inventions; one utility model patent, and one design patent. An overview of the various patents has been published on Tecan's website.

Tecan has an internal guideline to support colleagues in their responsible use of AI tools. "Innovation" at Tecan is not governed by a stand-alone policy, the goals, targets and indicators used to track process in this area are embedded in the wider R&D processes. The effectiveness of Tecan's approach to R&D is tracked internally, and lessons learned are incorporated into Tecan's procedures. This information is not shared externally, for reasons of business confidentiality.

Digital Innovation and Transformation Office

In January 2024, Tecan established a Digital Innovation & Transformation Office, to expand our successful digital strategy in close collaboration with all relevant functions and stakeholders. Co-led by two newly created roles reporting directly to the CEO, VP Digital Innovation and VP Digital Transformation, this strengthening of leadership in digital competency demonstrates that Tecan's ambition goes beyond keeping pace: we aim to lead the change in

this fast-moving domain and ensure that potential is turned into impact in innovative growth products as well as substantial improvement of business processes.

Over the past year, Tecan has made substantial progress in digital innovation, reinforcing our leadership in establishing an open digital ecosystem for laboratories. We have introduced products that provide automated fleet overviews and efficiently streamline all assay steps, thereby enhancing productivity and quality for laboratory personnel. Our laboratory automation solutions enable the latest Al-driven drug discovery applications that require highly relevant multi-modal data in a GenAl-powered iterative feedback loop. These initiatives underscore our commitment to driving progress and delivering value in the evolving landscape of laboratory technology digitalization. Furthermore, through the development of ai.tecan.com, we have enhanced productivity by enabling the responsible use of modern AI tools on Tecan's infrastructure, thereby optimizing work environments and fostering innovation.

RESPONSIBLE SOURCING

Tecan's main business activities are the research, design and development of our products, the final assembly of these at our production sites, and our related sales and service activities. Tecan manufactures products that are used in laboratories for life science research, in applied markets and in clinical diagnostics as well as in the medical area. The largest product group comprises laboratory automation platforms, benchtop instruments, as well as instrument components and sub-modules. Our products add value to society, and as described in the Social Impact section of this report, we also add value in our role as an employer. In 2024, Tecan continued to work to ensure that we have positive impacts, and avoid any negative impacts. through our supply chain. Tecan's Human Rights and Responsible Business Practices policy reiterates our commitment to the principles of the United Nations Global Compact (UNGC), including the protection of internationally proclaimed human rights, the elimination of all forms of forced and compulsory labor, and the effective abolition of child labor. Potential negative impacts in the supply chain include breaches of the UNGC principles, either by Tecan suppliers or stakeholders our suppliers work with.

This policy is available on tecan.com. In 2024, 99.1% of all employees with access to the Learning Services Organization (LSO) platform at Tecan and 85.4% of all contractors with access to the LSO platform at Tecan who had been assigned the Human Rights and Responsible Business Practices policy training had completed this, to ensure they are aware of the purpose, content and requirements of this policy. Employees without access to the LSO platform carry out trainings that have been reflected in the "training hours" data reported in the Social Impact section of this report.

Tecan products tend to be associated with specific Tecan production sites, and the purchasing for those sites is led by the site manager. In spending terms, between 60% and 80% of Tecan's purchase volume is typically sourced in the same region as the production site. As well as facilitating the development of trusted business relationships, this proximity enables Tecan to better manage cost efficiency, inventory needs, just-in-time delivery, freight cost, and quality aspects.

Tecan's Responsible Sourcing policy is published on tecan. com. The policy is supplemented by a detailed Standard Operating Procedure (SOP) found in Tecan's internal document management system, the TMS (Tecan Management System). The steps of the Responsible Sourcing program are illustrated in the diagram here and described further below.

The aim of the Program is to ensure Tecan sources products and services from suppliers who adhere to internationally recognized ethical standards, and to avoid suppliers who engage in practices that are harmful to people or the planet. The policy sets out how Tecan works to create a more responsible and sustainable supply chain that promotes social and environmental responsibility throughout the value chain. The process and instruments of the policy are as follows:

Supplier Qualification

The environmental, social and governance practices of prospective suppliers are now assessed along with factors such as supplier's production capabilities and quality management processes, in one comprehensive qualification process. This assessment includes evaluating the supplier's management of environmental, social and governance risks in their own supply chain, thereby capturing all upstream economic operators. In 2024, the sustainability practices of 412 current suppliers were evaluated via a requalification process, using the same standards as the qualification process for new suppliers. In both processes an initial risk screening is carried out using a third party tool.

Suppliers are asked to share documents such as their own Supplier Code of Conduct, and to outline their procedures for managing environmental, social and governance risks associated with their supply chain and with their suppliers' and subcontractors' practices. Supplier qualification and requalification are not complete until the supplier has been approved by Tecan's Responsible Sourcing Manager.

Supplier Code of Conduct

Our Supplier Code of Conduct outlines the minimum standards we expect suppliers to meet in areas including human rights, labor practices, and environmental impact. Tecan seeks to only work with suppliers that meet or exceed the standards set out in our Supplier Code of Conduct. All new suppliers are requested to sign Tecan's Supplier Code of Conduct as part of the supplier qualification process. Current suppliers are requested to sign the Supplier Code of Conduct as part of requalification.

Risk Assessment

A risk assessment screening of suppliers is carried out by performing a thorough due diligence to identify potential environmental, social and governance risks within the value chain, including risks relating to bribery and corruption, human rights, labor standards, child labor, environmental impact, and risks associated with conflict mineral import and processing. The assessment takes into consideration several factors including geographical location, industry sector, and supplier significance to Tecan. The assessment may include asking suppliers to provide additional corporate information and documentation demonstrating their environmental, social and governance practices.

Supplier Evaluation

Following the initial risk assessment, suppliers presenting a higher potential risk of inadequate environmental, social and governance practices are asked to provide additional information about their compliance with applicable laws and regulations, labor practices, environmental performance, and adherence to international standards and guidelines. Supporting evidence may also be requested, including ISO certifications and ratings such as that provided by EcoVadis. It is at this stage that on-site visits to suppliers would be most likely, followed by external audits if necessary. Tecan may conduct audits, assessments, or third-party verifications of our suppliers to evaluate their compliance with our Supplier Code of Conduct. Depending on the results of these steps, Tecan may require a supplier to improve their practices, or might decide not to work with the supplier.

Remediation and Continuous Improvement

If any non-compliance or potential risks are identified through the risk assessment, supplier evaluation process or audits, including the risk of conflict minerals or child labor in the supply chain, Tecan may work with suppliers to develop and implement corrective action plans. We support their efforts to remedy any issues and promote continuous improvement in areas such as human rights, labor practices, and environmental sustainability by offering guidance and training. If a supplier does not improve their practices, Tecan is likely to terminate the supplier relationship. Tecan's Responsible Sourcing program includes an escalation process to address cases in which a decision to terminate a supplier relationship could impact business continuity. This process includes stages culminating, if necessary, with a final review and decision by the appropriate Management Board Business Lead, Head of Operations, and Chief Technology Officer.

Stakeholder Engagement

Any stakeholder seeking to report issues relating to Tecan's Responsible Sourcing policy or any breach of the standards set out in Tecan's Code of Conduct can do so via Tecan's whistleblower hotline, accessible at tecan.com. This dedicated hotline ensures the highest standards of confidentiality and anonymity as well as a secure communication between the whistleblower and appointed specialized members of Tecan in charge of investigating and processing the issues reported.

Transparency and Reporting

Tecan is committed to transparency and reporting on our Responsible Sourcing activities. We communicate our progress and challenges in managing supply chain risks to relevant stakeholders, including employees, customers, and investors, in our Annual Report.

Impact of Tecan's Responsible Sourcing program

The Data section of this report includes the results of Tecan's Responsible Sourcing program. The program includes assessing the risk of conflict minerals or child labor issues in Tecan's supply chain in accordance with the Swiss supply chain legislation (DDTrO). In 2024, it was reconfirmed that Tecan does not import into Switzerland or treat in Switzerland materials that fall within the scope of this legislation. Child labor risk is included in the steps of the program described above.

DATA

In the previous sections of the Sustainability Report, Tecan's management of material topics is described. The management of material topics generates data that can indicate if a revised approach or new business activities are needed: the data is used in business decisions. For material topics that generate a significant amount of data, such as management of environmental impact and Tecan's role as an employer, the data related to these topics is shared here.

ENVIRONMENTAL DATA

Tecan calculates greenhouse gas emissions and progress towards our emissions reduction targets annually. In future,

Tecan aims to calculate scope 1 and scope 2 emissions and certain scope 3 emissions more frequently, as described in the Climate Impact section of this report. Energy consumption, water use and waste data are also tracked annually. 2022 was chosen as the baseline year for reasons of total global footprint data availability and quality. Energy consumption audits and appropriate follow-up actions are planned in 2025. An additional metric used to track progress towards our overall aim of emissions reduction is the collection of supplier environmental data.

		2024		2023	2022
	Consumption	GJ	(tCO₂e)1	(tCO₂e)	(tCO₂e)
Scope 1: Direct energy use per primary source			2,010	1,994	1,730
Stationary combustion			762	936	953
Diesel (liters)	152	5	0.40	0.42	0.89
Natural gas (KWh)	3,024,808	10,881	613	807	824
Propane (liters)	95,450	2,281	147	128	128
Petrol (liters)	555	18	1	–	–
Mobile combustion			1,136	911	671
Diesel (liters)	210,390	7,491	529	381	300
Petrol (liters)	195,441	6,310	407	529	371
LPG (liters)	–	–	–	1	–
Hybrid Diesel (liters)	5,562	198	14	–	–
Hybrid Petrol (liters)	88,958	2,872	185	–	–
Fugitive Emissions: Refrigerants (kg)	61	–	112	147	106
Scope 2: Indirect energy use per primary source (market based)			1,031	3,877	6,575
Electricity (KWh)
Grid (KWh)	2,384,521	8,584	913	3,796	6,482
Renewable (KWh)	15,700,674	56,522	–	–	–
Electric vehicles (KWh)	100,733	363	38	6	–
District cooling (KWh)	4,743	17	0.05	1	–
District heating (KWh)	691,403	2,489	80	74	93
Energy (GJ) total		98,034
Emission intensity (scope 1 + 2 emissions in tCO₂e/turnover in CHF million)			3.25	5.46	7.26

Total Scope 1+2 (tCO₂e)			3,041	5,871	8,305
Scope 3: Other indirect emissions			439,268	432,326	474,048
Total Scope 1+2+3 (tCO₂e)			442,308	438,197	482,3522

¹ Emissions are calculated in accordance with the Greenhouse Gas protocol and represented in tCO₂e (tonnes carbon dioxide equivalent).

² 2022 results have been restated in light of updated spend-based factors available. Therefore, 2022 results in this table do not match the numbers in the 2022 Tecan Annual Report. This restatement lowered Tecan's overall footprint by less than 5%.

Tecan's greenhouse gas emissions increased slightly in 2024. This is almost entirely attributable to an increase in the weight of materials purchased and products sold, and where weight data was not available, an increase in the amount spent on goods and services. Emissions generated by employee commuting also increased: a commuting survey was carried out in 2024, in 2023 data had been estimated based on a 2022 commuting survey. In 2024, far more colleagues were commuting to Tecan's offices compared to in 2022, reflecting the end of work practices that had been introduced during the covid pandemic. Tecan achieved emissions reductions in a number of categories including:

Transportation, with double the amount of freight shipped by sea and a corresponding decrease in air freight
Business travel, following a company-wide effort to reduce travel by air
Electricity, with 87% purchased electricity coming from renewable sources.

Tecan will continue to pursue the emissions reduction and environmental management activities described in the Climate Impact section of this report.

Emissions are calculated in accordance with the Greenhouse Gas protocol and represented in tCO₂e. There are no biogenic CO₂ emissions. GWP (global warming potential) used is from the IPCC Report 2024 AR6 whenever possible, emissions factors used are mainly DEFRA BEIS 2024, IEA 2024, Ecoinvent V3.11 and CEDA 2025. The scope 2 data in the table above is market-based. The emissions consolidation approach used is operational control.

Calculations are based on activity so far as possible and otherwise on spend data. Spend data was either converted into activity data through estimations or directly calculated through spend-based emission factors. Any data gaps were filled through extrapolations based on averages per either number of full-time employees or square meters surface.

In 2022, scope 3(15) emissions were not reported as the amount, 1.64 tCO₂e, was deemed immaterial to Tecan's total global footprint. There are no scope 3(15) emissions in Tecan's 2023 footprint. In 2024, no steam was consumed or sold and no electricity, heating or cooling were sold.

Location-based approach

Scope	GHG Category	2024 (tCO₂e)	2023 (tCO₂e)	2022 (tCO₂e)
Scope 2		7,908	7,178	7,178
Scope 2	Electricity: Grid	908	3,768	6,019
Scope 2	Electricity: Renewable	6,888	3,330	1,065
Scope 2	Electricity: Electric vehicles	33	4	-
Scope 2	Cooling	0.05	1	-
Scope 2	Heating	80	74	93
Scope 3
Scope 3	Fuel- and energy-related activities	2,061	2,370	5,149

Water and waste data

		2024	2023		2022
	Amount	(tCO₂e)	Amount	(tCO₂e)	Amount	(tCO₂e)
Waste generated in operations (tons)
Incineration	94	36	80	48	103	54
Incineration hazardous	19	47	54	49	9	22
Landfill	213	111	316	160	263	120
Landfill hazardous	0	0	–	–	16	3
Recycling	583	4	384	6	289	6
Unspecified	8	4	–	–	19	9
Unspecified hazardous	4	11	–	–	2	6
Radioactive treatment	0.35	0.09	–	–	0.29	–
Composting	9	0.08	31	0	–	–
Water (m3)	68,632	13	61,988	12	70,725	19

Waste is monitored and managed locally and waste data is collected from local site managers by Tecan's Global Head of EHS (Environment, Health and Safety).

Total tCO₂e

	2024	2023	2022
Scope	tCO₂e	tCO₂e	tCO₂e
1	2,010	1,994	1,730
2	1,031	3,877	6,575
3.1 – Purchased goods and services	224,765	202,852	205,009*
3.2 – Capital goods	837	5,634	3,812*
3.3 – Fuel– and energy-related activities	1,660	1,843	1,921
3.4 – Upstream transportation and distribution	13,957	18,895	30,785
3.5 – Waste generated in operations	225	275	239
3.6 – Business travel	4,183	7,372	5,676*
3.7 – Employee commuting	6,356	2,476	2,051
3.9 – Downstream transportation and distribution	9,212	12,597	18,200
3.10 – Processing of sold products	1,940	3,101	3,103
3.11 – Use of sold products	175,670	176,920	201,898
3.12 – End-of-life treatment of sold products	456	345	1,353
3.13 – Downstream leased assets	6	15	–
Total	442,308	438,197	482,352*

Calculated in accordance with the Greenhouse Gas Protocol

^* In the 2023 Annual Report, 2022 results were restated in light of updated spend-based factors available. Therefore, 2022 results in this table do not match the numbers in Tecan's 2022 Annual Report. This restatement lowered Tecan's overall footprint by less than 5%.

SOCIAL IMPACT DATA

Employee Data

This data is headcount data unless indicated otherwise and reflects the period January 1, 2024 – December 31, 2024. Employees may have permanent or temporary contracts. Unless otherwise indicated, the data refers to all Tecan employees.

Certain Tecan employee benefits programs are specific to countries and / or influenced by local law. Tecan's benefits always meet and may exceed legal requirements. Examples of benefits include life insurance, health care, disability and invalidity coverage, parental leave, other paid leave, retirement provision, stock ownership, global travel insurance, commuting subsidies, and company cars. Offer and acceptance of benefits is tracked internally but not reported, for reasons of business confidentiality. Analysis regarding the ratio of basic salary and remuneration of women to men is also carried out per country and reported where completed.

Gender diversity (# and %) of all employees globally, and by region

Region of operations	No. of female employees	Female employees (%)	No. of male employees	Male employees (%)	No. of not disclosed gender	Not disclosed gender em ployees (%)	No. of all employees	All employess (%)
Asia Pacific	680	20.35%	425	12.72%	3	0.09%	1,108	33.16%
North America	340	10.18%	558	16.70%	3	0.09%	901	26.97%
Other Europe	228	6.82%	391	11.70%	2	0.06%	621	18.59%
Switzerland	211	6.32%	500	14.97%	0	0.00%	711	21.28%
Total global operations	1,459	43.67%	1,874	56.09%	8	0.24%	3,341	100.00%

Gender diversity (# and %) of all employees globally by contract type

Contract type	No. of female employees	Female employees (%)	No. of male employees	Male employees (%)	No. of not disclosed gender	Not disclosed gender em ployees (%)	No. of all employees	All employees (%)
Indefinite/permanent employees	1,436	42.98%	1,850	55.37%	8	0.24%	3,294	98.59%
Fixed-term/temporary employees	23	0.69%	24	0.72%	0	0%	47	1.41%
Full-time employees	1,306	39.09%	1,760	52.68%	8	0.24%	3,074	92.01%
Part-time employees	153	4.58%	114	3.41%	0	0%	267	7.99%
Non-guaranteed hours employees (casual workers, on-call employees,
zero-hours contracts)	0	0%	0	0%	0	0%	0	0%

Number and % of employee contract types by region

Contract type FTE	No. of employees on each contract type in Asia Pacific	% of employees on each contract type in Asia Pacific	No. of employees on each contract type in North America	% of employees on each contract type in North America	No. of employees on each contract type in Other Europe	% of employees on each contract type in Other Europe	No. of employees on each contract type in Switzerland	% of employees on each contract type in Switzerland
Indefinite/permanent
employees	1,096	99%	901	100%	603	97%	694	98%
Fixed-term/temporary
employees	12	1%	0	0%	18	3%	17	2%
Full-time employees	1,107	100%	896	99%	527	85%	544	77%
Part-time employees	1	0%	5	1%	94	15%	167	23%
Non-guaranteed hours
employees (casual workers,
on-call employees, zero
hours contracts)	0	0%	0	0%	0	0%	0	0%

The majority of employee data is maintained within the SAP system, facilitating direct querying. However, one entity was not yet hosting their data on SAP in 2024, therefore required employee data was directly requested from local HR. Subsequently, this dataset was aligned and merged with the SAP dataset to form the source data used here. In 2024, Tecan launched Employee Central, a new module of the SuccessFactors suite. This has transformed how HR data is managed across Tecan, bringing together key processes — such as recruitment, onboarding and talent reviews — with the latest employee information. Employee Central makes our HR processes more efficient and scalable.

No. of non-employees by contract type and percentage share of total workforce

Contract type Headcount	No. of workers on each contract type	Percentage (%) of workers within total workforce on each contract type
External consultant	471	12.07%
External contractor	72	1.84%
External temporary	6	0.15%
Temp EE by agency	5	O.13%
Adm Board of Directors	8	0.20%
Total number of employees in global operations	3,341	85.60%
Total workforce (employee + non-employee workers)	3,903	100.00%

Non-employees / Contingent contractors are: External consultants, External contractors, Temp by agency (short-term temporary contracts) and Board Members. Tecan engages the most common types of non-employee workers indirectly through employment agencies and directly with contractors. Workers who are not employees carry out tasks to support Tecan's ordinary business activities.

Gender diversity (%) of the company's governance bodies (Extended Management Board [EMB] and Board of Directors)

Age diversity (%) of the company's governance bodies (Extended Management Board [EMB] and Board of Directors)

New employee hires across global company, hire rate (%) and by gender

	2024		202	23
Gender group	New hires across global operations	New hire rate (%)	New hires across global operations	New hire rate (%)
Female employees	152	4.55%	208	5.82%
Male employees	165	4.94%	249	6.97%
Unknown/Undeclared	11	0.33%	10	0.28%
Total new employees globally	328	9.82%	467	13.07%

New employee hire rate (%) across global company by age group

	2024	2024		3
Age group	New hires across global operations	New hire rate (%)	New hires across global operations	New hire rate (%)
Employees under 30 years old	156	4.67%	175	4.90%
Employees 30-50 years old	134	4.01%	210	5.88%
Employees over 50 years old	38	1.14%	80	2.24%
Unknown age	-	-	2	0.06%
Total new employees globally	328	9.82%	467	13.07%

New employee hire rate (%) across global company by region

	202	4	2023
Region of operations	New hires across global operations	New hire rate (%)	New hires across global operations	New hire rate (%)
Asia Pacific	147	4.40%	147	4.11%
North America	66	1.98%	147	4.11%
Other Europe	68	2.04%	93	2.60%
Switzerland	47	1.41%	80	2.24%
Total new employees globally	328	9.82%	467	13.07%

Gender diversity (%) of all employees globally by employee category

Gender diversity (%) of all employees globally by management level

Age diversity (%) of all employees globally by employee category

Turnover rates, voluntary and involuntary, of global company, also by gender

Gender group	No. of voluntary turnover	Voluntary turnover rate (%)	No. of involuntary turnover	Involuntary turnover rate (%)	No. of Other	Other turnover rate (%)	No. of all turnover	Total turnover rate (%)
Female employees	112	3.35%	89	2.66%	49	1.47%	250	7.48%
Male employees	116	3.47%	123	3.68%	56	1.68%	295	8.83%
Undeclared/Unknown	5	0.15%	1	0.03%	2	0.06%	8	0.24%
Total global employees	233	6.97%	213	6.38%	107	3.20%	553	16.55%

Turnover rates, voluntary and involuntary, of global company by age group

Age group	No. of voluntary turnover	Voluntary turnover rate (%)	No. of involuntary turnover	Involuntary turnover rate (%)	No. of Other	Other turnover rate (%)	No. of all turnover	Total turnover rate (%)
Employees under 30 years old	85	2.54%	49	1.47%	66	1.98%	200	5.99%
Employees 30-50 years old	128	3.83%	83	2.48%	14	0.42%	225	6.73%
Employees over 50 years old	20	0.60%	81	2.42%	27	0.81%	128	3.83%
Unknown age	0	0.00%	0	0.00%	0	0.00%	0	0.00%
Total global employees	233	6.97%	213	6.38%	107	3.20%	553	16.55%

Turnover rates, voluntary and involuntary, of global company by region

Region of operations	No. of voluntary turnover	Voluntary turnover rate (%)	No. of involuntary turnover	Involuntary turnover rate (%)	No. of Other	Other turnover rate (%)	No. of all turnover	Total turnover rate (%)
Asia Pacific	111	3.32%	38	1.14%	52	1.56%	201	6.02%
North America	68	2.04%	135	4.04%	11	0.33%	214	6.41%
Other Europe	29	0.87%	18	0.54%	23	0.69%	70	2.10%
Switzerland	25	0.75%	22	0.66%	21	0.63%	68	2.04%
Total global employees	233	6.97%	213	6.38%	107	3.20%	553	16.55%

Percentage of all employees covered by collective bargaining agreements

% of employees covered by collective bargaining agreements

Total global operations	11.07%

Average number of hours of training provided per employee (FTE basis), by employee category

Employee category	Average hours of training provided per employee
Research and development management	41
Research and development non-management	42
Manufacturing and logistics management	44
Manufacturing and logistics non-management	36
Sales and marketing management	41
Sales and marketing non-management	39
Customer service management	49
Customer service non-management	66
General administration management	42
General administration non-management	41
Unable to assign	31

For additional information see the Social Impact section of the report. Included in the Learning and Development section of this report is information about the type and scope of programs implemented and assistance provided to upgrade employee skills. Transition assistance programs provided to facilitate continued employability and the management of career endings resulting from retirement or termination of employment are included in the general description of the other learning and development offerings provided. Line managers are advised to once a year at minimum have a conversation with their team members about each member's personal development plan. The management of career endings is handled case-by-case depending on local legal requirements and the circumstances.

Percentage of all employees (EE) who received a regular performance and career development review, also by gender

Gender group	% of employees who recieved a performance review	Number of employees who recieved a performance review	Total number of EE
Female employees	95.68%	1,396	1,459
Male employees	99.36%	1,862	1,874
Undeclared/Unknown	112.50%	9	8
Total global employees	97.79%	3,267	3,341

Tecan's employee performance review process is described in the Social Impact section of the report, and is offered to all (100%) employees.

HEALTH AND SAFETY

Tecan's Health and Safety program is set out in the Health and Safety section of this report. Below is the data related to the Health and Safety program.

	2024	2023
Tecan's employees covered by Tecan's occupational health and safety manage ment system, which is described in the Health and Safety section of this report. Workers who are not employees but whose workplace is controlled by Tecan also benefit from this system. (GRI 4053-8ai)	3,341 (100%)	3,573 (100%)
Employees working at locations where the occupational health and safety man agement system has been internally audited. At these sites, workers who are not employees but whose workplace is controlled by Tecan also benefit from this. (GRI 403-8aii)	1,234 (37%)	717 (20.1%)
Globally, Tecan has 562 workers who are not employees. For 2024, Tecan does report which locations these workers are based at, and so does report what % of these workers are at sites where the occupational health and safety manage ment system has been internally audited. (GRI 403-8b)	480 (85%)	Not reported
GRI 403-9ai – 9bv follow:
For all employees: The number and rate of fatalities as a result of work-related injury	0	0
For all employees: The number and rate of high-consequence work-related injuries (excluding fatalities)	0	0
For all employees: The number and rate of recordable work-related injuries	34, 6.71 (LTIR 3.55)	20, 3.04 (LTIR 1.83)
For all employees: The main types of work-related injury	Contusion, cut and puncture	Cut, back pain
For all employees: The number of hours worked	5,064,238	6,568,675
For all workers who are not employees but whose work and/or workplace is controlled by the organization: The number and rate of fatalities as a result of work-related injury	0, 0	0, 0
For all workers who are not employees but whose work and/or workplace is controlled by the organization: The number and rate of high-consequence work-related injuries (excluding fatalities)	0, 0	0, 0
For all workers who are not employees but whose work and/or workplace is controlled by the organization: The number and rate of recordable work-related injuries	0, 0	0, 0
For all workers who are not employees but whose work and/or workplace is controlled by the organization: The main types of work-related injury	No injuries reported	No injuries reported
For all workers who are not employees but whose work and/or workplace is controlled by the organization: The number of hours worked	This data is not available for 2024	This data is not available for 2023
Rates have been calculated based on 1,000,000 hours worked (GRI 403-9e)
No workers have been excluded from this disclosure. (GRI 403-9f)
GRI 403-10ai – 10bi follow:
For all employees: The number of fatalities as a result of work-related ill health	0	0
For all employees: The number of cases of recordable work-related ill health	3	1
For all employees: The main types of work-related ill health	Musculoskeletal disorder	Musculoskeletal disorder
For all workers who are not employees but whose work and/or workplace is controlled by the organization: The number of fatalities as a result of work-related ill health	0	0
For all workers who are not employees but whose work and/or workplace is controlled by the organization: The number of cases of recordable work-related ill health	0	0
For all workers who are not employees but whose work and/or workplace is controlled by the organization: The main types of work-related ill health	No ill health reported	No ill health reported
GRI 403-10ci – 10d follow:
The work-related hazards that pose a risk of ill health, including how these hazards have been determined: Insufficient ergonomics or inadequate work place design was identified and recorded as a risk through the Group-wide risk assessment. Mitigation of the risk is being achieved by ensuring proper infra structure is in place. In the reporting year, one case of ill health has been attrib

GOVERNANCE DATA

Responsible Sourcing

Tecan's Responsible Sourcing program tracks the results of program activities at every step of the process set out in the Responsible Sourcing section of this report. The metrics shown below in bold are included in the data shared in this report:

Percentage and number of suppliers annually that:

Have their sustainability performance assessed during the supplier qualification process
Sign Tecan's Supplier Code of Conduct
Complete an EcoVadis assessment
Implement a corrective action plan
Were inspected or visited
Were further assessed via Tecan's responsible sourcing escalation process
Tecan terminates a relationship with because of their poor sustainability practices

Screening is carried out simultaneously for impacts relating to Environment, Labor and Human Rights, Ethics, and Sustainable Procurement. Tecan's Responsible Sourcing program was implemented during 2023. In 2024, 412 suppliers working with Tecan before implementation of the program, were requalified in the process described in the Responsible Sourcing section of this report. This covers 61% of production-related spend for Tecan's main production sites. As "Energy consumption & GHGs" was identified as Tecan's highest potential environmental risk through EcoVadis IQ risk screening, priority was given to further assess the management of GHG emissions throughout Tecan's supply chain. After requalification, 171 suppliers were requested to provide further information on their carbon reduction plans. The evaluation of suppliers' sustainability performance will continue in 2025 and corrective action plans may be implemented as per the steps of the Responsible Sourcing program described above. No (0) suppliers completed a corrective action plan in 2024, and no (0) supplier relationships were terminated because of poor supplier sustainability practices.

Percentage of new suppliers that were screened using environmental criteria	94% (62) new suppliers were screened in 2024.
Number of suppliers assessed for environmental impacts	2,992 suppliers screened on EcoVadis IQ platform for environmental impacts. 412 suppliers were further assessed during the requalification of current suppliers. Of these requalified suppliers, 171 suppliers assessed were asked to provide further information specifically on their activities to reduce greenhouse gas emissions.
Number of suppliers identified as having significant actual and potential negative environmental impacts	22 suppliers were identified as having significant potential negative environmen tal impacts, showing performance gaps during supplier assessment.
Significant actual and potential negative environmental impacts identified in the supply chain	Top 3 environmental potential risks in our supply chain identified via EcoVadis IQ risk screening: 1) Energy consumption & GHGs, 2) Materials, Chemicals & Waste, and 3) Water.
Percentage of suppliers identified as having significant actual and potential negative environmental impacts with which improvements were agreed upon as a result of assessment	100% of the 22 suppliers have signed Tecan's Supplier Code of Conduct. These suppliers are currently being further assessed and corrective action plans will be implemented where required, as described in the Responsible Sourcing section of this report.
Percentage of suppliers identified as having significant actual and potential negative environmental impacts with which relationships were terminated as a result of assessment, and why	0
Operations and suppliers considered to have signifi cant risk for incidents of: child labor	80 suppliers presented potentially high labor and human rights risk in EcoVadis risk screening. Of these, 8 suppliers were identified as having significant risk for labor and human rights incidents, showing performance gaps during supplier requalification.
Operations and suppliers considered to have signifi cant risk for incidents of: young workers exposed to hazardous work	Significant risk for labor and human rights incidents does not differentiate between (or is inclusive of) child labor, forced labor and the risk of young workers exposed to hazardous work.
Operations and suppliers considered to have significant risk for incidents of child labor either in terms of: type of operation (such as manufacturing plant) and supplier	44 of the 80 suppliers presented potentially high risk for labor and human rights in terms of industry, based on EcoVadis IQ screening.
Operations and suppliers considered to have signif icant risk for incidents of child labor either in terms of: countries or geographic areas with operations and suppliers considered at risk	66 of the 80 suppliers presented potentially high risk for labor and human rights in terms of countries at risk, based on EcoVadis IQ screening.
Measures taken by the organization in the reporting period intended to contribute to the effective abolition of child labor	96% of the 80 suppliers presenting potentially high labor and human rights risk have now signed Tecan's Supplier Code of Conduct as an early step in the Responsible Sourcing process. The 8 suppliers presenting significant risk are now within the Supplier Evaluation step of the process, amongst other suppli ers. These suppliers will undergo further assessment and corrective action plans will be implemented where required, as described in the Responsible Sourcing section of this report.

ARTICLE 964j-k INDEX

This report includes Tecan's adherence to the due diligence and reporting obligations required by Art. 964j-k of the Swiss Code of Obligations and the Swiss "Ordinance on Due Diligence and Transparency in Relation to Minerals and Metals from Conflict-Affected Areas and Child Labour" (DDTrO). This report covers the period January 1, 2024, to December 31, 2024. During the reported period, Tecan complied with the due diligence obligations regarding child labor, as detailed on pages 80-81 and 91.

GRI CONTENT INDEX

Tecan has reported in accordance with the GRI Standards for the period January 1, 2024 to December 31, 2024.

GRI 1: 2021 Foundation GRI 2: 2021 General Disclosures The organization and its reporting practices 2-1 Organizational details 46 2-2 Entities included in the organization's sustainability reporting 46 2-3 Reporting period, frequency and contact point 51 2-4 Restatements of information 51 2-5 External assurance 96 Activities and workers 2-6 Activities, value chain and other business relationships 46










2-7* Employees 85-89
2-8 Workers who are not employees 85-89
Governance
2-9 Governance structure and composition 46-48, 100ff
	Additional detail
2-10 Nomination and selection of the highest governance body 46-47, 100ff	on tecan.com
2-11 Chair of the highest governance body 100ff
2-12 Role of the highest governance body in overseeing the
management of impacts 46-47
2-13 Delegation of responsibility for managing impacts 46-48
2-14 Role of the highest governance body in sustainability reporting 46-48
2-15 Conflicts of interest 102
2-16 Communication of critical concerns 47, 106
2-17 Collective knowledge of the highest governance body 46-47, 104-105
2-18 Evaluation of the performance of the highest governance body 106
2-19 Remuneration policies 114ff
2-20 Process to determine remuneration 114ff
2-21 Annual total compensation ratio –	Withheld for reasons of business confidentiality
Strategy, policies and practices
2-22 Statement on sustainable development strategy 41
2-23 Policy commitments 48
2-24 Embedding policy commitments 48
2-25 Processes to remediate negative impacts 81
2-26 Mechanisms for seeking advice and raising concerns 60, 81
2-27 Compliance with laws and regulations 71
2-28 Membership associations 50

Stakeholder engagement
	2-29 Approach to stakeholder engagement	49-50
	2-30 Collective bargaining agreements	89
GRI 3: 2021	Material Topics
	3-1 Process to determine material topics	50
	3-2 List of material topics	51
	3-3 Management of material topics	51-90
Governance and ethics
GRI 205: Anti
corruption 2016	205-1 Operations assessed for risks related to corruption	72
	205-2 Communication and training about anti-corruption policies
	and procedures	70-72
	205-3 Confirmed incidents of corruption and actions taken	71
GRI 207: Tax 2019	207-1 Approach to tax	72-74
	207-2 Tax governance, control, and risk management	73-74
	207-3 Stakeholder engagement and management of concerns related to tax	73-74
	207-4 Country-by-country reporting	73-74
Climate impact
GRI 302:
Energy-2016	302-1 Energy consumption within the organization	82
	302-2 Energy consumption outside of the organization	83	All available information is on pages 51-55 and 83
			All available information
	302-3 Energy intensity	83	is on pages 51-55 and 83
			All available information
	302-4 Reduction of energy consumption	82	is on pages 51-55 and 83
			All available information
	302-5 Reductions in energy requirements	82	is on pages 51-55 and 83
GRI 305: Emissions-2016	305-1* Direct (Scope 1) GHG emissions	82
	305-2* Energy indirect (Scope 2) GHG emissions	83
	305-3 Other indirect (Scope 3) GHG emission	83
	305-4 GHG emissions intensity	83
	305-5 Reduction of GHG emissions	83
			All available data
	305-6 Emissions of ozone-depleting substances	82-83	reported in GHG tables
	305-7 Nitrogen oxides (Nox), sulfur oxides (Sox), and other		All available data
	significant air emissions	82-83	reported in GHG tables

Circular economy			Unavailable due to the

GRI 301:
Materials 2016	301-1 Materials used by weight or volume	–
GRI 306: Waste 2020	306-1 Waste generation and significant waste-related impacts	84
	306-2 Management of significant waste-related impacts	84

	306-3 Waste generated 306-4 Waste diverted from disposal	84 84	complexity of the materials

Being the employer of choice
GRI 401:
Employment 2016	401-1 New employee hires and employee turnover	86-87
	401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees	85
	401-3 Parental leave	85
GRI 404: Training
and Education 2016	404-1 Average hours of training per year per employee	64, 89
	404-2 Programs for upgrading employee skills and transition
	assistance programs	89
	404-3 Percentage of employees receiving regular performance and
	career development reviews	89

Diversity, equity and inclusion (DEI)
GRI 405:
Diversity and Equal		64-66,
Opportunity 2016	405-1* Diversity of governance bodies and employees	85-87
GRI 405:
Diversity and Equal Opportunity	405-2 Ratio of basic salary and remuneration of women to men	65	Global data unavailable
GRI 406:
Non-discrimination	406-1 Incidents of discrimination and corrective actions taken	65

Health and safety
GRI 403:
Occupational Health
and Safety 2018	403-1 Occupational health and safety management system	68-69, 90
	403-2 Hazard identification, risk assessment, and incident
	investigation	90
	403-3 Occupational health services	90
	403-4 Worker participation, consultation, and communication	90
	403-5 Worker training on occupational health and safety	90
	403-6 Promotion of worker health	90
	403–7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	90
	403-8 Workers covered by an occupational health and safety
	management system	90
	403-9 Work-related injuries	90
	403-10 Work-related ill health	90

Responsible sourcing
GRI 308: Supplier
Environmental
Assessment 2016	308-1 New suppliers that were screened using environmental criteria	91
	308-2 Negative environmental impacts in the supply chain and
	actions taken	91
GRI 414: Supplier Social Assessment	414-1 New suppliers that were screened using social criteria	91
	414-2 Negative social impacts in the supply chain and actions taken	80-81

Product quality and safety
GRI 416: Customer
Health and Safety	416-1 Assessment of the health and safety impacts of product and
2016	service categories	75-76
	416-2 Incidents of non-compliance concerning the health and safety impacts of products and services	75-76
GRI 417: Marketing	417-1 Requirements for product and service
and Labeling 2016	information and labeling	75-76
	417-2 Incidents of non-compliance concerning product and service
	information and labeling	76
	417-3 Incidents of non-compliance concerning marketing
	communications	76

^* These data points have received limited external assurance per the Auditor's letter on page 96 of this Report.

TCFD INDEX

TCFD Disclosure	Page
Governance
Describe the board's oversight of climate-related risks and opportunities	46-48
Describe management's role in assessing and managing climate-related risks and opportunities	46-48
Strategy
Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term	55-58
Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning	55-58
Describe the resilience of the organization's strategy, taking into consideration different climate related scenarios, including a 2°C or lower scenario	55-58
Risk Management
Describe the organization's processes for identifying and assessing climate-related risks	55-59
Describe the organization's processes for managing climate-related risks	55-59
Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management	55-59
Metrics and Targets
Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process	52, 60
Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks	82-84
Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets	52, 60

Ernst & Young Ltd Maagplatz 1 P.O. Box CH-8010 Zurich

Phone: +41 58 286 31 11 www.ey.com/en_ch

To the Management ofZürich, 7 March, 2025 Tecan Group Ltd., Männedorf

Independent Assurance Report on selected Indicators in the Annual Report 2024

We have been engaged to perform assurance procedures to provide limited assurance on selected indicators (including GHG emissions) included in Tecan Group AG's and its consolidated subsidiaries' (the Group´s) Sustainability Report, integrated in the Annual Report 2024 for the year ended 31 December 2024 (the Report).

Our limited assurance engagement focused on selected indicators (including GHG emissions) as presented in the GRI Index with an '*' on pages 92-94 of the Report and in the appendix of this assurance report.

We did not perform assurance procedures on other information included in the Report, other than as described in the preceding paragraph, and accordingly, we do not express a conclusion on that information.

Applicable criteria

The Group defined as applicable criteria (the Applicable Criteria): Global Reporting Initiative Sustainability Reporting Standards (GRI Standards)

Inherent limitations

The accuracy and completeness of selected indicators (including GHG emissions) are subject to inherent limitations given their nature and methods for determining, calculating and estimating such data. In addition, the quantification of the non-financial indicators is subject to inherent uncertainty because of incomplete scientific knowledge used to determine factors related to the emissions factors and the values needed to combine e.g. emissions of different gases. Additionally, GHG procedures are subject to estimation (or measurement) uncertainty resulting from the measurement and calculation processes used to quantify emissions within the bounds of existing scientific knowledge.

Our assurance report should therefore be read in connection with the Tecan Group's Sustainability Report section of the Report, its definitions and procedures on non-financial matters reporting therein.

Responsibility of the Management

The Management is responsible for the selection of the Applicable Criteria and for the preparation and presentation, in all material respects, of the selected indicators (including GHG emissions) in accordance with the Applicable Criteria. This responsibility includes the design, implementation, and maintenance of internal control relevant to the preparation of the selected indicators and the Report that are free from material misstatement, whether due to fraud or error.

Independence and quality control

We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.

Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Our responsibility

Our responsibility is to express a conclusion on the selected indicators (including GHG emissions) based on the evidence we have obtained.

We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000] Engagements Other than Audits or Reviews of Historical Financial Information. This standard requires that we plan and perform this engagement to obtain limited assurance about whether the selected indicators (including GHG emissions) are free from material misstatement, whether due to fraud or error.

Summary of work performed

Procedures performed in a limited assurance engagement vary in nature and timing and are less in extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Our procedures were designed to obtain a limited level of assurance on which to base our conclusion and do not provide all the evidence that would be required to provide a reasonable level of assurance.

Although we considered management's internal controls when determining the nature and extent of our procedures, our assurance engagement was not designed to provide assurance on internal controls. Our procedures did not include testing controls or performing procedures relating to checking aggregation or calculation of data within IT systems.

Our limited assurance procedures included, amongst others, the following work:

Assessment of the suitability of the Applicable Criteria and their consistent application
Interviews with relevant personnel to understand the business and reporting process, including the sustainability strategy, principles and management
Interviews with the Group's key personnel to understand the sustainability or non-financial reporting system during the reporting period, including the process for collecting, collating and reporting the indicators and non-financial information
Checking that the calculation criteria have been correctly applied in accordance with the methodologies outlined in the Applicable Criteria
Analytical review procedures to support the reasonableness of the data
Identifying and testing assumptions supporting calculations

Testing, on a sample basis, underlying source information to check the accuracy of the data

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our assurance conclusions.

Conclusion

Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the selected indicators (including GHG emissions) in the Report of Tecan Group have not been prepared, in all material respects, in accordance with the Applicable Criteria.

Ernst & Young Ltd

Roger Müller Martin Mattes Executive in charge Partner

Appendix 1: Selection of consolidated environmental, social and governance indicators in scope of limited assurance

Indicators
Environmental Indicators
GRI 305: Emissions. Disclosures 305-1 (Scope 1), 305-2 (Scope 2)
Social Indicators
GRI 2-7: Employees (by gender, region, contract type)
GRI 405-1: Diversity of Board/management (by gender and age group)

Tecan Annual Report 2024 Corporate governance

CORPORATE GOVERNANCE

Information pursuant to the SIX Swiss Exchange Directive on Information Relating to Corporate Governance.

1 GROUP STRUCTURE AND SHAREHOLDERS

GROUP STRUCTURE

Tecan Group Ltd. (the Company), Seestrasse 103, 8708 Männedorf, Zurich, Switzerland, is the ultimate parent company of the Tecan Group.

The Company is listed on the SIX Swiss Exchange.

Security symbol:	TECN
Security number:	1 210 019
ISIN:	CH0012100191
Telekurs Financial:	TECN
Bloomberg:	TECN SW
Reuters:	TECN.S

As of December 31, 2024, the Company's market capitalization was CHF 2,578 million (shares outstanding). The list of consolidated subsidiaries, none of which is publicly listed, is presented in the financial section of this Annual Report. The operational Group structure is based on a customer-oriented division into the business segments Life Sciences Business (end-customers) and Partnering Business (OEM customers). The segment reporting based on structure is presented in the financial section of this Annual Report.

SIGNIFICANT SHAREHOLDERS (DISCLOSURE UNDER ART. 120 SWISS FINANCIAL MARKET INFRASTRUCTURE ACT [FINFRAG])

As of December 31, 2024, the following shareholders held more than 3% of Tecan's shares:

	31.12.2023		31.12.2024
	Shares	%	Shares	%
Chase Nominees Ltd., London (UK)	1,546,910	12.1%	1,546,910	12.1%
UBS Fund Management (Switzerland) AG, Basel (CH)	650,716	5.1%	1,313,381	10.2%
BlackRock Inc., New York, NY (US)	577,347	4.5%	577,347	4.5%
Norges Bank (the Central Bank of Norway), Oslo (NO)	–	<3%	415,882	3.2%
Wellington Management Group LLP, Boston (US)	–	<3%	413,643	3.2%
Pictet Asset Management SA; Geneva (CH)	383,958	3.0%	385,128	3.0%
Credit Suisse Funds AG, Zürich (CH)	384,926	3.0%	384,926	3.0%
Swisscanto Fondsleitung AG, Zürich (CH)	383,060	3.0%	383,060	3.0%
APG Algemene Pensioen Groep N.V., Amsterdam (NL)	572,926	4.5%	–	<3%
Amperiprise Financial, Inc, Minneapolis (US)	384,711	3.0%	–	<3%
FIL Limited, Pembroke, Bermuda (BM)	383,491	3.0%	–	<3%
Candriam Luxembourg, Strassen (LU)	383,280	3.0%	–	<3%

For further information: www.ser-ag.com/en/resources/notifications-market-participants/significant-shareholders.html#

Numbers of shares according to the most recent shareholder notifications to SIX; the percentages are adjusted to the actual share capital as at the end of the reporting period. The Company does not have any cross-shareholdings exceeding 5% of the capital or voting rights on both sides.

<-- PDF CHUNK SEPARATOR -->

2 CAPITAL STRUCTURE

	2022	2023	2024
Shares issued	12,731,441	12,783,087	12,825,883
Nominal value per share (CHF)	0.10	0.10	0.10
Treasury shares	–	–	(100,000)
Shares outstanding	12,731,441	12,783,087	12,725,883
Share capital (CHF)	1,273,144	1,278,309	1,282,588
Legal reserves (CHF)	455,909,782	456,017,074	450,730,348
Retained earnings (CHF)	237,856,979	244,516,103	260,761,245
Treasury shares (CHF)	–	–	(28,934,483)
Shareholders' equity (CHF)	695,039,905	701,811,486	683,839,698
Conditional share capital
Reserved for employee participation plans
Shares	221,771	170,125	127,329
CHF	22,177	17,013	12,733
Reserved for future business development
Shares	1,800,000	1,800,000	1,800,000
CHF	180,000	180,000	180,000

As of December 31, 2024, the Company's share capital was CHF 1,282,588 and was divided into 12,825,883 registered shares with a nominal value of CHF 0.10 each. Each share is entitled to dividend payments whenever the shareholders approve a profit distribution. The Company does not have any bearer shares, participation certificates or bonus certificates outstanding.

CONDITIONAL SHARE CAPITAL – CHANGES IN CAPITAL

In 1997, the Company's shareholders approved the creation of conditional share capital of CHF 130,000 (consisting of 1,300,000 registered shares with a nominal value of CHF 0.10 each) for the purpose of employee participation (Article 3a of the Articles of Incorporation). Several employee share option plans and share plans were granted based on this conditional share capital. Details of these plans are disclosed in the consolidated financial statements in note 9 "Employee benefits". Between February 2011 and June 2015, the employee participation plans were funded with treasury shares. As of December 31, 2024, 127,329 shares with a total nominal value of CHF 12,733 were left under article 3a of the Articles of Incorporation, whereas a maximum number of 69,221 employee share options and 83,882 employee shares were outstanding. Effective as from January 1, 2025, the Group will fund its employee participation plans again with treasury shares.

The Articles of Incorporation provide for an additional conditional share capital (article 3b of the Articles of Incorporation); the Company's share capital may be increased by a maximum of CHF 180,000 through the issue of a maximum of 1,800,000 registered shares to be paid in full with a nominal value of CHF 0.10 each. This increase shall be achieved through the exercise of conversion or option rights granted in connection with bonds or similar instruments issued by the Company or Group companies or through the exercise of option rights granted to shareholders. Shareholders' pre-emptive rights are excluded. The acquisition of registered shares through the exercise of conversion or option rights and any further transfer of registered shares is subject to the restrictions specified in Article 5 of the Articles of Incorporation. In the case of convertible bonds or warrant-linked bonds, the preferred pre-emptive rights of the shareholders may be restricted or excluded by resolution of the Board of Directors 1) in order to finance or refinance the acquisition of companies, parts of companies or equity investments, or 2) to issue warrant-linked or convertible bonds on international capital markets. If preferred pre-emptive rights are excluded, then 1) the bonds must be placed at market conditions; 2) the exercise period for warrants must be limited to five years and the exercise period for conversion rights must be limited to ten years from the date the bond was issued; and 3) the conversion or exercise price for the new shares must be set at least in line with the market conditions prevailing on the bond issue date. The Articles of Incorporation are available for consultation at www. te can.com/tecan-corporate-policies.

ENTRY IN THE SHARE REGISTER AND NOMINEE REGULATIONS

Registration of voting rights in the Company's share register is conditional on shareholders declaring that they have acquired the shares in their own name and for their own account. If this is the case, then there are no registration or voting right restrictions under the Articles of Incorporation. The Company's Board of Directors may register nominees for not more than 2% of the share capital as shareholders with voting rights in the share register. Nominees are shareholders who do not explicitly declare in the registration application that they hold the shares for their own account and with whom the Company has entered into a corresponding agreement. In addition, for shares in excess of 2% of the share capital, the Board of Directors may register nominees with voting rights in the share register if such nominees disclose the names, addresses, nationalities and shareholdings of those persons for whose account they hold 2% or more of the share capital. Legal entities and companies that are linked to one another in terms of capital and voting power through uniform management or otherwise, as well as individuals, legal entities or companies coordinating their actions to circumvent the registration limitations, are considered to be one person. The Board of Directors is entitled to grant exceptions to the registration limitations in special cases. No such exceptions were granted in the year under review. The procedures and conditions for cancelling these limitations on transferability are described in section 6.

3 BOARD OF DIRECTORS

INDEPENDENCE AND RULES REGARDING OUTSIDE MANDATES

All the members of the Board of Directors are non-executive members. None of the Board members was formerly a member of the Management Board of Tecan Group Ltd. or any Group company during the period under review or the three preceding periods. According to the Articles of Incorporation the permitted number of other mandates of the members of the Board of Directors in the highest executive management or bodies of legal entities outside of the Company's group is limited to four mandates in listed and four mandates in non-listed companies, foundations and other legal entities with economic purpose. Mandates in different legal entities of the same group (including in joint ventures directly or indirectly owned by such a group or the Company that are not consolidated) are counted as one mandate per group, but may not exceed the number of 20 additional mandates if counted separately. Mandates held by members of the Board of Directors by order of the Company shall not be subject to the limitations set out above. Conflicts of interest are prohibited by Article 7 of the Articles of Incorporation. Adherence to the Articles of Incorporation is monitored by the Board Secretary, Tecan's General Counsel. No conflicts of interest have been identified in 2024 or previous years. Should a conflict of interest be detected, it would be addressed and if deemed material, reported to shareholders. Tecan completes external sustainability reporting and is highly rated by agencies including MSCI and ISS for its strong governance practices.

ELECTION, TERM OF OFFICE, ORGANIZATION, MEETINGS AND ATTENDANCE

Pursuant to the Company's Articles of Incorporation, the Board of Directors is composed of a minimum of one and a maximum of eight members, who are elected for a term of one year. Re-election after the end of the term is permitted. The Chair of the Board of Directors is elected by the General Meeting. The Board of Directors is responsible for the ultimate supervision and management of the Company, including the development of general strategies and guidelines, and for all other duties that are non-transferable under applicable law. To the extent permitted by law and provided that there is no conflict with the Company's Articles of Incorporation and the Organizational Regulations adopted by the Board of Directors, management of the Company's affairs is delegated to the Management Board pursuant to the Organizational Regulations. The Board's performance is reviewed by the Nomination Committee as described in that section of this report; adherence to Tecan's Articles of Incorporation is monitored by the Board Secretary, Tecan's General Counsel.

Tecan's shareholders vote to approve the appointment of Board members or the continuation of their term in office at Tecan's Annual General Meeting. Otherwise, performance is not formally evaluated. Any report made via Tecan's independent, third-party operated whistleblower hotline regarding the Board would be investigated by Tecan's Compliance function, as described previously. The Board of Directors meets as often as business matters require but at least five times a year upon invitation of the Chair or, in their absence, upon invitation of another Board member. Any member of the Board of Directors may call a meeting by specifying the reasons for the meeting. The meetings usually last between five and seven hours. As a general rule, the CEO and CFO attend the Board meetings and other members of the Management Board or senior management invited by the Chair attend for certain portions. At each meeting, the Chair reserves some time for discussion between the members of the Board and the CEO and some time for discussion amongst the Board members only. Meetings may also be held by videoconference or by telephone. The Board of Directors passes its resolutions by an absolute majority of votes of Board members present. In the event of a tie, the Chair of the Board has the deciding vote. Resolutions may be passed in writing unless a member requests oral deliberation. Five Board of Directors' meetings were held in the year under review. Three meetings of the Audit Committee lasting about two to three hours each were also held. In addition, there were three meetings of the Compensation Committee and several telephone conferences of the Nomination and Governance Committee. In the year under review, all members of the Board of Directors took part in the Board of Directors' meetings and the committee members attended all of their respective committee meetings.

Hilti Group2, Member of the Board of Directors; Martin Hilti Family Trust2, Trustee; Hilti Foundation2, Chairperson; Ursula Zindel-Hilti Foundation2, Member of the Foundation Board

Myra Eskes

Since 2022, elected until 2025 1971

Dutch citizen Master Degree in Macro Economics, University of Groningen, Groningen, The Netherlands

Professional background:

1995 to 2005 various management positions at General Electric Company, The Netherlands & USA including General Manager Diagnostic Imaging Equipment Manufacturing; 2005 to 2008 Vice President Business Operations, Universal Pictures International Entertainment, UK; 2009 to 2019 various management positions at General Electric Company, Singapore & Turkey including President and CEO Southeast Asia, Korea, Australia and New Zealand; 2019 to 2023 President Asia Pacific, Smith & Nephew Plc, Singapore

Other activities:

None

Public company

² Private company

Dr. Oliver Fetzer

Dr. Daniel R. Marshak

Since 2018, elected until 2025 1957

US citizen

PhD in Biochemistry and Cell Biology, The Rockefeller University, New York, USA; Bachelor in Biochemical Sciences, Harvard University, Cambridge, USA

Professional background:

1984 to 1986 Staff Fellow, National Institutes of Health, USA; 1986 to 1995 Sr. Staff Investigator, Cold Spring Harbor Laboratory, USA; 1994 to 2000 Sr. Vice President and Chief Scientific Officer, Osiris Therapeutics, Inc.; 2000 to 2006 Vice President and Chief Technology Officer, Biotechnology and Vice President Research and Development, Biosciences, Cambrex Corporation, USA; 2006 to 2014 his last role Senior Vice President and Chief Scientific Officer, additional positions: President, Emerging Diagnostics, Waltham, USA and Shanghai, China; President, Greater China, Shanghai, China; PerkinElmer, Inc., USA; 2014 to present Consultancy for various companies in the Life Sciences, Bio-Pharmaceutical, and Diagnostics industry. Consultant to RADx program of US Government DHHS/NIH/NIBIB for COVID-19 diagnostics

Other activities:

RareCyte, Inc.2, Member of the Board of Directors

Public company

² Private company

COMMITTEES

The Board of Directors has appointed committees composed of members of the Board to prepare and implement its resolutions and to exercise its supervisory function. The committees are assigned with specific duties and responsibilities. All other duties and responsibilities remain with the full Board of Directors, for instance the review of the Company's ESG approach, activities and risks and Cyber Security risks. The committees meet upon invitation of the respective Chair and as often as business requires, but at least twice a year. Committee resolutions and proposals for consideration by the entire Board of Directors are passed by a majority of votes cast, provided that there is a quorum of at least two committee members present. Resolutions may also be passed by written resolution. For specific topics (for example in connection with M&A discussions) the Board of Directors forms ad-hoc committees. Several conference calls of ad-hoc committees were held in the year under review. The Board of Directors has established three committees that are composed as follows:

	Audit Committee	Compensation Committee	Nomina tion and Governance Committee
Dr. Lukas Braunschweiler	Member		Chair
Myra Eskes		Member
Dr. Oliver Fetzer		Member
Matthias Gillner	Chair		Member
Dr. Karen Huebscher	Member		Member
Dr. Christa Kreuzburg		Chair	Member
Monica Manotas	Member
Daniel R. Marshak		Member

AUDIT COMMITTEE

The Audit Committee is composed of at least two members. The committee's principal duties and responsibilities are to form an opinion regarding internal and external audits and to monitor cooperation between the external statutory auditors and the Company; to assess the quality of internal audits and compliance; to review the annual financial statements (both consolidated and single-entity) and interim financial statements destined for publication and report on them to the full Board of Directors; to make recommendations to the full Board of Directors, especially with regard to the approval of annual and interim financial statements; and to monitor the independence, performance and fees of the statutory auditors and propose that they be appointed or reappointed by vote of the Annual General Meeting. This committee is also charged with monitoring the risk management of the Company.

Furthermore, the Audit Committee oversees the Company's reporting obligations and compliance regarding sustainability, in particular regarding environmental, social and governance (ESG) aspects, discuss feedback from investors, proxy advisors and analysts concerning the Company's performance in ESG matters, and generally assists the Board of Directors and support the Management in responding to ESG related questions. Representatives of the external statutory auditors and the internal auditor may attend meetings of this committee at the invitation of the Chair. The experience in financial matters of members of the Audit Committee are set out on pages 104 and 105.

COMPENSATION COMMITTEE

The majority of members of the Compensation Committee must be non-executive and independent members of the Board of Directors. The role and responsibilities of the Compensation Committee are described in the Compensation Report on page 114 to 131.

NOMINATION AND GOVERNANCE COMMITTEE

The majority of members of the Nomination and Governance Committee must be independent and non-executive members of the Board of Directors. The committee consists of three members. It is chaired by the Chair of the Board. The most important duties of this committee include performance review and succession planning at the level of the Board of Directors and the Management Board; defining the selection criteria for members of the Board of Directors and the Management Board; and regularly reviewing the performance of the Board of Directors, its committees and its individual members based on a set of overall competences of the Board required for the Company. This committee is also charged with monitoring risk management and corporate governance.

INFORMATION AND CONTROL INSTRUMENTS

The members of the Management Board are actively involved in the various committees of the Board of Directors. The CEO, CFO, the General Counsel and the internal auditors and sometimes the external statutory auditors attend the meetings of the Audit Committee, for example. In addition, members of the Management Board meet with individual Board members on an ad-hoc basis to discuss and delve more deeply into specific topics. Through these meetings, critical concerns could be raised. No critical concerns impacting stakeholders were raised in 2024.

The Board of Directors receives monthly reports from the Group's management information system so that it can monitor financial and operational performance. All relevant guidelines are presented to the Board of Directors or the appropriate committees for approval to ensure shared responsibility for all major decisions.

Internal Audit: Since the internal auditors report to the Audit Committee, their independence is assured. All companies are audited every three years on the basis of a risk analysis. The annual audit plan consists of audits of all major companies and is approved by the Audit Committee. A summary of significant findings and recommendations

is submitted directly to the Audit Committee with copies to the CEO, the CFO and the General Counsel. The reports are also made available to the external statutory auditors. During the year under review, Internal Audit focused its efforts on strengthening the internal control system for financial reporting and compliance. Other areas audited include compliance with laws and standards; the compliance, efficiency and effectiveness of business processes; improved cyber security measures; and the implementation of recommendations made by the internal auditors. Additional information on risk management is given in Note 12 to the financial statements of Tecan Group Ltd..

4 MANAGEMENT

MANAGEMENT CONTRACTS AND RULES REGARDING OUTSIDE MANDATES

No agreements between the Company and third parties that are not part of the Tecan Group were entered into or renewed in the year under review for the purpose of delegating management responsibilities.

According to the Articles of Incorporation, the permitted number of other mandates of the members of the Management Board in the highest executive management or bodies of legal entities outside of the Company's group is limited to two mandates in listed and four mandates in

non-listed companies, foundations and other legal entities with economic purpose. Mandates in different legal entities of the same group (including in joint ventures directly or indirectly owned by such a group or the Company that are not consolidated) are counted as one mandate per group, but may not exceed the number of 20 additional mandates if counted separately. Mandates held by members of the Management Board by order of the Company shall not be subject to the limitations set out above.

MANAGEMENT BOARD

1 |

Dr. Achim von Leoprechting

Chief Executive Officer (CEO)

Member since 2013 Joining Tecan in 2013 1968

German citizen PhD in Biology (University of Freiburg, Germany)

Professional background:

1999 to 2002 different positions in product management at Packard Bioscience, today part of PerkinElmer; 2002 to 2013 several management positions and professional positions at PerkinElmer Inc. (NYSE: PKI), including Vice President and General Manager In Vitro Solutions

Other activities:

Analytical, Life Science and Diagnostics Association (ALDA)2, Member of the Board

2 I

Tania Micki

Chief Financial Officer (CFO)

Member since 2020 Joining Tecan in 2020 1971

French and Swiss citizen MBA General Management (INSEAD, Fontainebleau, France), graduated ESCP (École Supérieure de Commerce de Paris) in Paris, France with major Finance/ Audit/ Accounting, BA in Russian (University Paris Nanterre, France)

Professional background:

1996 to 2006 various financial positions at General Mills; 2006 to 2009 Vice President Finance, Planning and Analysis Europe, Gate Group; 2009 to 2010 Seed Supply Finance Lead EMEA, Monsanto; 2010 to 2020 variety of positions at Sulzer AG, most recently as Chief Risk Officer and Group Internal Audit Head, other positions included CFO Global Markets in a group-wide function

Other activities:

ASM International1, Member of the Board; EHL Holding SA2, Member of the Board of Directors and the Board of Trustees of the EHL Foundation

3 I

Mukta Acharya

Executive Vice President Head of the Life Sciences Business division

Member since August, 2024

Joining Tecan in 2022 1984

US citizen Master's degree Engineering Management (Dartmouth College, USA), Bachelor's degree in Mechanical Engineering (Osmania University, Hyderabad, India)

Professional background:

2008 to 2010 Senior Management Consultant at Kaiser Associates, driving strategy and revenue impact across pharma, healthcare, technology, and consumer foods industries; 2010 to 2018 at CVS Health, held various leadership roles, including Director of Enterprise Product Innovation & Management (2016 to 2018), overseeing product development, business models, M&A, and strategic growth; 2018 to 2022 at Thermo Fisher Scientific, served as VP & GM of Single-Use Flexible Consumables, leading Product Management, R&D, Sales, and Operations while holding multiple P&L leadership roles across markets; since 2022, President, Tecan Americas at Tecan Group, overseeing financial and market performance of the Life Sciences Business division

Other activities:

None

Ralf Griebel

4 I

Executive Vice President Head of the Partnering Business division

Member since 2020 Joining Tecan in 2020 1972

German citizen Graduate Engineer in Electrical Engineering and Computer Engineering (TH Mittelhessen University of Applied Sciences, Friedberg, Germany)

Professional background:

1994 to 1996 R&D Engineer, AT&T Istel; 1997 to 2002 different positions in Applications and Business Development at Packard Bioscience, today part of PerkinElmer; 2002 to 2003 Technology Manager Europe, Perkin-Elmer LifeSciences in Cambridge (UK); 2003 to 2006 Technology Manager Integrated Solutions – Germany, Austria, Switzerland, PerkinElmer Life and Analytical Sciences; 2006 to 2013 Strategic Program Manager, STRATEC Biomedical AG; 2013 to 2014 Vice President Partnering Business, STRATEC Biomedical AG; 2014 to 2016 Senior Vice President Partnering Business, STRATEC SE; 2016 to 2020 Senior Vice President Partnering Business, STRATEC SE and Managing Director, Diatron MI

Other activities:

None

5 I

Ulrich Kanter

Executive Vice President Global Head of Operations & IT

Dr. Klaus Lun

¹ Public company

² Private company

until June 2024

5 CONTENT AND METHOD OF DETERMINING COMPENSATION AND STOCK OPTION PLANS

Pursuant to the Articles of Incorporation, each year the Compensation Report for the completed business year is submitted to the Annual General Meeting for a non-binding consultative vote. The process for the prospective approval of the compensation of the Board of Directors and of the Management Board as well as the statutory additional amount for further members of the Management Board are described in the Compensation Report.

Pursuant to the Articles of Incorporation, any loans, credits or securities granted to a member of the Board of Directors or the Management Board may not exceed an amount corresponding to 50% of such member's base salary. No such loans, credits or securities were outstanding at the end of 2024.

The Articles of Incorporation are available for consultation at www.tecan.com/tecan-corporate-policies. The provisions of the Articles of Incorporation regarding the compensation policy (Article 18, sections 3, 4, 6 and 7) read as follows:

For work performed in the interest of the Company, the members of the Board of Directors shall receive, in addition to reimbursements of costs and expenses, a compensation, the maximum amount of which must be approved by the Annual General Meeting. The compensation of the members of the Board of Directors may consist of an annual compensation and further nonperformance-related compensation (such as remunerations for the membership in committees or the performance of special tasks or assignments) plus the employer's social security contributions and contributions to pension plans. The compensation may be paid in cash and partly in shares in the Company.
For work performed in the interest of the Company, the members of the Management Board shall receive, in addition to reimbursements of costs and expenses, a compensation, the maximum amount of which must be approved by the Annual General Meeting. The compensation of the members of the Management Board may consist of (a) an annual base salary and further nonperformance-related compensation plus the employer's social security contributions and contributions to pension plans, (b) performance-related cash compensation, and (c) compensation under the long-term participation plan, each plus the employer's social security contributions and contributions to pension plans, if applicable.
The variable cash compensation shall be determined on the basis of financial targets of the Company's group and (quantitative and qualitative) personal targets (hereinafter referred to as "performance-related cash compensation"). The targets shall be defined by the Board
of Directors at the beginning of each year upon motion of the Compensation Committee. The performance-related cash compensation of the CEO may not exceed 150% of the base salary and the performance-related cash compensation of the other members of the Management Board may not exceed 100% of the base salary. The performance-related cash compensation is generally paid out in cash but may also be paid in the form of shares or other types of benefits.
Within the scope of the long-term participation plan, the compensation of the members of the Management Board shall be determined on the basis of the Company's strategic and/or financial targets, which shall be measured over a period of at least three years. The targets shall be defined by the Board of Directors upon motion of the Compensation Committee. In addition, the members of the Management Board may be allowed to participate in the long-term participation plan on a voluntary basis. The compensation may be paid in the form of shares, entitlements to additional shares (matching shares), options, cash or other types of benefit as determined by the Board of Directors upon motion of the Compensation Committee. The Board of Directors upon motion of the Compensation Committee shall determine the conditions that apply to grants, vesting and blocking periods as well as the circumstances triggering accelerated vesting or deblocking or forfeiture of any grants (e.g. in the event of death, invalidity, change of control, termination of employment contract). The Board of Directors upon motion of the Compensation Committee shall determine the maximum amount of compensation under the longterm participation plan in the compensation and participation plans or regulations.

The provisions of the Articles of Incorporation on pensions read as follows (Article 20):

• The Company may establish one or more independent pension funds for occupational pension plans or may join existing pension funds. Contributions by the employer to such pension funds, as opposed to the regulated benefits paid by such pension funds, are a component of the compensation. Pension benefits directly accrued or paid by the employer due to country-specific regulations for occupational benefits shall be treated the same way as contributions to and benefits by pension funds. Under special circumstances, the Company may make payments for social security purposes outside the statutory social security system, including payments by the Company to the pension fund to finance a transitional pension in the event of early retirement. The value of such payments per member of the Management Board may not exceed the total amount of the last annual compensation paid to this very member. The value of the pension is determined in accordance with generally recognized actuarial rules.

The Compensation Report contains information on the structure of compensation and stock option plans as well as on actual compensation in 2024 and motions proposed to the Annual General Meeting that relate to the prospective approval of compensation of the Board of Directors and Management Board.

6 SHAREHOLDERS' PARTICIPATION RIGHTS

Each share entitles the bearer to one vote. Shareholders may only be represented at the Annual General Meeting by their legal representative, another shareholder with voting rights or the independent proxy. Proxy representation requires a written power of attorney that is only valid for the meeting for which it is issued. Article 13 paragraph 2 of the Company's Articles of Incorporation stipulates the matters for which a majority greater than that prescribed by law is required in order to pass a shareholders' resolution, namely a qualified majority of at least two-thirds of the votes represented and an absolute majority of the nominal stock value represented.

The types of transaction covered by this provision are as follows:

The conversion of registered shares into bearer shares;
The cancellation or modification of transferability restrictions (Article 5 of the Articles of Incorporation);
The dissolution and liquidation of the Company and the removal of Article 13 paragraph 2 itself from the Articles of Incorporation, and the elimination or modification of the quorum specified in this provision.

Shareholders who together hold shares of at least 0.5% of the share capital may request in writing no later than 56 days prior to a General Meeting that a specific item be included on the agenda. Shareholders who together represent at least 10% of the share capital may request that a General Meeting be convened. Shareholders registered as having voting rights are informed by mail of the convening of a General Meeting at least 20 days prior to the meeting. The notice is also published in the Swiss Official Gazette of Commerce. As a rule, the share register is closed for new entries from around ten days before the day of the General Meeting until the day of the General Meeting. In connection with the implementation of the requirements of the Ordinance Against Excessive Compensation in Listed Companies, the responsibilities of the General Meeting were expanded in the Articles of Incorporation to include the responsibilities relating to the compensation of the Board of Directors and the Management Board.

7 CHANGE OF CONTROL AND DEFENSE MEASURES

The Company's Articles of Incorporation do not contain any rules on opting-out or opting-up in order to cancel or restrict the obligation to submit an offer pursuant to the Federal Act on Stock Exchanges and Securities Trading. One-third of the options issued in conjunction with ESOP (for details see consolidated financial statements, Note 9.4 "Share-Based Payment") vest each year (vesting period). During this vesting period, these options generally cannot be exercised. When there is a change of control (and the related change of the employment relationship), these options vest immediately and may be exercised immediately (accelerated vesting period). In the event of a change of control (and the related change of the employment relationship), the three-year blocking period for the shares allotted under PSMP will be lifted and the matching shares will be allocated before the usual time (see "Employee participation plans" in the Compensation Report). There are otherwise no change-of-control clauses included in agreements or compensation plans that benefit members of the Board of Directors, the Company's Management Board, or the Tecan Group.

8 STATUTORY AUDITORS

Date on which Ernst & Young AG (EY) took over the existing auditing mandate	April 13, 2016
Year in which the lead auditor took up his position	2018

FEES PAID

CHF 1,000	2023	2024
Fees for the statutory audit of the Group auditor	1,261	1,210
Fees for audit-related services of the Group
auditor	–	34
Fees for other services of the Group auditor	–	–

The auditors are appointed by vote of the Annual General Meeting of Shareholders for a one-year term. The external audit is reviewed by the Audit Committee. The auditors attend the meetings of the Audit Committee at which the annual and semi-annual financial statements are discussed and preparations are made for approval by the Board of Directors. The auditors report on the audit focus and summarize the audit findings. The auditors submit recommendations regarding the scope of the audit and its focus for the upcoming audit period. At year's end, the Audit Committee reviews the performance of the auditors as well as the audit costs and submits a proposal to the Board of Directors regarding reappointment of the auditors. As a rule, the Company issues a new request for audit proposals every four years. The lead auditor must be changed every seven years.

9 INFORMATION POLICY

Tecan informs shareholders and the financial community on a continuous basis about significant developments in the Company. To do so, Tecan regularly publishes press releases, interim and annual reports, and information provided on the Company's website (www.tecan.com). In addition, the Company gives regular presentations to institutional investors at its headquarters and at several conferences and holds numerous individual and group meetings every year with members of the international financial community. Individual company publications are also available in printed form on request. They can also be downloaded from the Tecan website.

10 BLACKOUT PERIODS

The Insider Trading Policy of the Company defines two ordinary Closed Periods (blackout periods). They begin on the close of trading on December 20 (as regard the full year results) and/or on June 20 (as regard the half year results) of each year and end at the opening of the SIX Swiss Exchange on the third trading day after Tecan's financial results for the full year and/or the half year have been released to the press. Tecan's CEO and CFO jointly shall declare extraordinary Closed Periods where appropriate. This rule applies certain defined functions and individuals who are potentially exposed to critical information. This group includes but is not limited to the members of the Management Board and of the Board of Directors.

IMPORTANT DATES FOR INVESTORS

Date	Location	Event
March 12, 2025	Conference Call/ Webcast	Full Year Results 2024, Press and Analysts Brief ing on Annual Results
April 10, 2025	Rapperswil, SG	Annual General Meeting
August 12, 2025	Conference Call/ Webcast	Half Year Results 2025

FOR MAIL OR PHONE INQUIRIES, PLEASE CONTACT

Tecan Group Ltd.

Martin Brändle

Senior Vice President,

Corporate Communications & Investor Relations

Seestrasse 103

CH-8708 Männedorf

Switzerland

T + 41 44 922 84 30

F + 41 44 922 88 89

[email protected]

COMPENSATION REPORT

The year 2024 was marked by a challenging market environment for Tecan. This required us to adapt as an employer by identifying new growth opportunities, implementing cost reduction measures, and investing in innovation, all while continuing to attract and retain top talent in our industry.

To navigate this challenging period, we increased our investment in senior leadership skills by continuing the development journey initiated in 2023. Fostering a unified Senior Leadership Team is crucial for ensuring strong alignment and driving business performance, ultimately enhancing sales and profits across the organization. One of our priorities is enhancing our working environment. A key part of this investment in 2024 included providing training for all employees on the aspects of creating a space of psychological safety1 in the workplace.

To receive direct feedback on our leadership effectiveness, we encouraged our employees to provide feedback through an employee engagement pulse survey, and we were once again impressed by the high participation rate. The results, however, underscore the challenging period we are experiencing and the necessity to adapt. It is crucial for us to stay even more closely connected with our employees to better understand their needs and to communicate more frequently and effectively. It is this close connection that drives high performance also in challenging periods.

Throughout the year, we adopted additional cost-reduction measures, implementing a hiring freeze and reducing headcount in select areas to align with decreased business demands. This understandably raised concerns among our employees, which we needed to address. For many employees, this was a new experience, because Tecan and the market have previously had an unprecedented run of positive performance, and it is essential to keep them engaged, informed, and provide clear direction. Despite these challenges, we successfully maintained stable voluntary turnover rates, indicating that our adapted leadership approach is effective.

¹ https://hbr.org/2023/02/what-is-psychological-safety

We have continued our approach from 2023 to ensure that our compensation principles and systems align with the expectations of our shareholders and stakeholders. To strengthen this alignment even more, we have continued to engage with shareholders actively and have taken into account their feedback and the feedback from proxy advisors. This has led to further improvements at the policy level and in the dissemination of information within our compensation report.

Tecan recognizes the evolving need for transparency, and we continue in our 2024 report to include additional information. This includes not only overall target achievement but also specific target definitions and achievements that drive our Short-Term Incentive (STI) payout levels.

The ongoing dialogue with key stakeholders, regulatory changes, and the evolution of Tecan's approach to compensation and benefits have shaped the content of this Compensation Report. This reflects the continued importance of diligently managing this significant area of our business practices.

This Compensation Report describes Tecan's compensation principles and system. The report provides information about the method of determining compensation and discloses the compensation awarded during 2024 to the members of the Board of Directors and the Management Board. This report complies with the requirements laid out in the Swiss Code of Obligations, the standard relating to information on Corporate Governance of the SIX Swiss Exchange, and the principles of the Swiss Code of Best Practice for Corporate Governance of the Swiss national federation economiesuisse.

116	Message from the Chair of the	127	Compensation to the Management Board
	Compensation Committee		(Audited)
118	Governance	129	Compensation to former Members of
118	Articles of Incorporation		Governing Bodies
118	Role of shareholders on compensation	129	Compensation to Related Parties
119	Compensation Committee	129	Loans and Credits
119	Benchmarking and external consultants	130	Shareholdings of the members of the Board
120	Compensation principles		of Directors and the Management Board in
121	Compensation system of the Board of		2024 (Audited)
	Directors	131	Outlook and Motions on compensation at
121	Compensation system of the Management		the Annual General Meeting
	Board	132	Statutory auditor's report on the
125	Employment contracts		compensation report
127	Compensation to the Board of Directors
	(Audited)

THE CHAIR OF THE COMPENSATION COMITTEE.

A message from Christa.

DEAR SHAREHOLDERS

The year 2024 was particularly challenging for Tecan due to a difficult market environment, which led to a significant and unexpected decline in revenues. This had a direct impact on the overall compensation levels across various management levels, including the Management Board. In the following pages, we present Tecan's Compensation Report for the financial year 2024.

Our aim is to provide you with insights into our compensation principles and system. You will notice that our compensation system is closely aligned with our business performance. In recent years, Tecan's above-target business performance was reflected in the payout levels of variable pay and long-term incentives for the Management Board. Consequently, as you will see in this report, the variable compensation and long-term incentive payouts in 2024 mirror the shortfall in our business performance. This outcome demonstrates that our short- and long-term incentives are aligned with our business results and the interests of our shareholders.

Building on the efforts started in 2023, we continue to seek the opinions and expectations of both investors and proxy advisors regarding our Compensation Report. Your feedback has led to the implementation of several new measures related to our policy and the content of this report. We are focusing on three key areas: shareholder engagement, transparency, and participation. We have already observed positive results, as reflected in the increased acceptance rate of the Compensation Report at our Annual General Meeting in 2024, and we are committed to continuing this path of improvement.

After introducing minimum shareholding requirements for the Management Board in 2023, we have now, after careful deliberation, decided to implement similar requirements for the Board of Directors in 2024.

What remained stable this year is our overall compensation approach. We continue to maintain a harmonized shortterm incentive plan with a standard set of group-wide strategic targets for senior management. This incentive plan has proven to be an effective tool, even in challenging times, for fostering collaboration and guiding the entire company in a unified direction. We will also continue to provide additional information on target definitions and actual achievement levels for our short-term incentive programs.

It is important to us that all shareholders use the opportunity to be heard. Therefore, we encourage you to participate in the 2025 Annual General Meeting and contribute to the dialogue on executive compensation.

Business performance in 2024 was subdued and largely reflected the challenging market environment. Most of the preset targets for short-term variable cash compensation were not met, resulting in an overall target achievement of only 30.2%. This report details how company results influenced the compensation awarded to Management Board members under the incentive plans.

The Compensation Committee carried out its regular activities during 2024. These included setting performance goals at the beginning of the year, conducting the corre-

sponding performance assessment of the Management Board at year-end, determining compensation for the members of the Management Board and the Board of Directors, and preparing the Compensation Report and the "say-on-pay" vote for the Annual General Meeting of Shareholders.

We transparently share detailed information regarding the compensation system and the compensation awarded to the Board of Directors and the Management Board. Specifically, we provide details on:

Governance: compensation decisions, including the role of shareholders, the Compensation Committee, and external advisors
Compensation model of the Board of Directors: the split between the fixed basic fee and the committee fees
Compensation model of the Management Board: a description of the incentive plan performance criteria, their weights, and a performance assessment for each goal at the end of the respective performance period
Compensation table of the Management Board: including the compensation granted (and the compensation realized) in the reporting year

This Compensation Report will be submitted to an advisory vote at the upcoming Annual General Meeting. Shareholders will also be asked to vote on the maximum aggregate amount of compensation for the Board of Directors for the term of office from the 2025 Annual General Meeting until the 2026 Annual General Meeting, and on the maximum aggregate amount of compensation for the Management Board for the financial year 2026.

We hope that you find this report informative. We are confident that our compensation system rewards performance in a balanced and sustainable manner and is aligned with shareholders' interests. On behalf of the Board of Directors, I would like to thank you for your continued support.

Dr. Christa Kreuzburg

Chair of the Compensation Committee

GOVERNANCE

ARTICLES OF INCORPORATION

As described in the Corporate Governance Report on page 100 of this Annual Report, the Articles of Incorporation of Tecan include the following provisions on compensation:

tasks and responsibilities of the Compensation Committee (Art. 17)
compensation principles applicable to the Board of Directors and the Management Board (Art. 18 and 23)
shareholders' voting modalities on compensation motions at the Annual General Meeting, including the additional amount for members of the Management Board who were nominated after the shareholders' approval of the maximum compensation amount (Art. 18)
provisions around credits and loans to the Board of Directors and the Management Board (Art. 20)
maximum permissible number of external mandates for members of the Board of Directors and the Management Board (Art. 21)
provisions related to contractual agreements with members of the Management Board and the Board of Directors (Art. 22)

The full Articles of Incorporation are available on the corporate website: www.tecan.com/tecan-corporate-policies

SHAREHOLDER REQUIREMENTS FOR BOARD OF DIRECTORS & MANAGEMENT BOARD MEMBERS

In 2024 the Board of Directors issued new Shareholder Guidelines for all Members of the Board of Directors. These minimum shareholding requirements came into effect on January 1, 2025. The guideline formally requires all Directors to hold, as a minimum, the number of shares in Tecan Group AG, which corresponds to the sum of the three most recently received share grants from Tecan Group AG. Based on the current split in Board of Directors compensation between cash and equity, this will result in holding on average at least 100% of annual compensation in Tecan shares. For new members of the Board of Directors and for current members of the Board of Directors who do not meet these requirements as of January 1, 2025, a maximum period of three years in office applies for building up the required shareholding.

A shareholding requirement for Management Board Members was already issued by the Board of Directors in 2023. The details of this Management Board shareholding requirement were outlined in the 2023 Compensation Report.

The objective of both policies is to encourage and ensure that the Members of the Management Board and the Board of Directors have a vested interest in the long-term success and value creation of the company by holding a relevant amount of its shares.

ROLE OF SHAREHOLDERS ON COMPENSATION

The compensation and approval mechanism at Tecan is set out in the Company's Articles of Incorporation. They are based on the Swiss Code of Obligations (OR Art. 734), which came into effect as per January 1, 2023.

Each year, the Board of Directors proposes to the shareholders at the Annual General Meeting for their approval the maximum aggregate amount of compensation to the Board of Directors for the period until the next Annual General Meeting and to the Management Board for the following financial year. In addition, the Board of Directors presents the Compensation Report for a retrospective, advisory shareholder vote. The voting mechanism on the compensation motions is shown in illustration [1]. For further details on the compensation votes at the upcoming 2025 Annual General Meeting, please refer to the section "Outlook and Motions on Compensation at the Annual General Meeting".

COMPENSATION COMMITTEE

The Compensation Committee supports the Board of Directors and acts as preparatory body in all relevant compensation matters related to the Board of Directors and the Management Board. In accordance with the Articles of Incorporation and the Organizational Regulations of Tecan, the Compensation Committee is composed of at least two members of the Board of Directors who are elected individually by the Annual General Meeting for a period of one year. At the 2024 Annual General Meeting, the shareholders re-elected Dr. Christa Kreuzburg (Chair), Dr. Oliver Fetzer, Dr. Daniel Marshak and Myra Eskes as members of the Compensation Committee.

The Compensation Committee meets as often as business requires. In the year under review, the Compensation Committee held four meetings in total which all members attended, with an additional circular resolution. The CEO, CFO and Chief People Officer (CPO) may be invited to attend the meetings in an advisory capacity. Invited members of the Management Board do not take part in discussions on agenda items concerning their own performance or compensation. The Chair of the Compensation Committee reports to the Board of Directors regularly on the activities of the Committee. Minutes are kept of the meetings and are available to all members of the Board of Directors.

The Compensation Committee acts in a preparatory capacity and proposes motions to the Board of Directors for approval. The Board of Directors approves the compensation policies for the entire Group as well as the general conditions of employment for members of the Management Board. The Compensation Committee took the decision in 2021 due to high volatility in salary changes and due to Tecan's growth strategy to benchmark every year the compensation of the Management Board. The compensation of the Board of Directors is more stable and will therefore be benchmarked from 2021 onwards only every three years. Both benchmarking exercises are executed with the help of independent external consultants. The Compensation Committee proposes and submits compensation amounts to the Board of Directors for approval. The Board of Directors reviews and approves the performance achievement of the members of the Management Board and the actual variable cash compensation to be paid out. The approval and authority levels of the different bodies on compensation matters are detailed in illustration [2] below.

Illustration [2]: Decision authorities in compensation matters

	CEO	Compensation Committee	Board of Directors	Annual General Meeting
Group compensation policy and principles		Proposes	Approves
Maximum aggregate amount of compensation of members of the Board of Directors		Proposes	Reviews	Approves
Individual compensation of members of the Board of Directors		Proposes	Approves
Maximum aggregate amount of compensation of the Management Board		Proposes	Reviews	Approves
Performance target setting and assessment of the CEO		Proposes	Approves
Performance target setting and assessment of other members of the Management Board	Proposes	Approves	Reviews
CEO compensation		Proposes	Approves
Individual compensation of other members of the Management Board	Proposes	Reviews	Approves
Compensation Report	Proposes	Reviews	Approves	Advisory vote

BENCHMARKING SUPPORTED BY EXTERNAL CONSULTANTS

Tecan periodically reviews the total compensation for the members of the Management Board and Board of Directors, comparing data from executive compensation surveys and published benchmarks from companies of similar size in terms of market capitalization, revenue, number of employees, geographic reach, etc., and/or which are operating in related industries.

In 2024 an independent external consultant conducted the annual benchmarking analysis of the compensation of the Management Board. Tecan also procures market data for non-executive positions from the same source.

A demanding labor market, combined with an increased volatility in compensation in the target industry as well as Tecan's growth trajectory, brought the Compensation Committee to the conclusion that from 2021 onwards, benchmarking analysis should be conducted annually. As in the previous year, taking into account Tecan's global footprint, the evaluation of the compensation levels and structure was compared to a transnational peer group: The peer group1 consists of listed companies only within life sciences and diagnostics, comprising similar companies found within Tecan's operating markets in Europe and the US. It is focused and homogenous and allows for stability in the peer group in the coming years. The peer group is unchanged compared to the previous year. At the time of the analysis, Tecan positioned between the 25th percentile and the median of the peer group on market capitalization and employee count and at the mid-point on revenue. This positioning allows Tecan to continuously grow within the peer group as is currently anticipated. The EU/US peer group represented a 67%/33% split. Companies in the peer group operate in the same industry and target similar candidates and therefore compete with Tecan in the recruitment market. As a general outcome and compared to the peer group, the cash compensation paid to individual members of the Management Board was confirmed to be slightly below market practice. If the long-term incentive targets are significantly exceeded, (and only then), the total compensation may increase to levels above the market median. Consistent with earlier benchmarking exercises conducted in the past, the analysis showed that the compensation system at Tecan is more weighted towards the long-term incentive, while short-term compensation is positioned below market levels.

In accordance with the previously laid out three-year cycle, a separate benchmarking analysis by the same external consultant as in 2021 was conducted in 2024 to analyze the compensation of the Board of Directors. The previous peer group was reviewed and reduced from 18 to 13 companies due to delisting of existing peers and elimination of companies with a considerably higher or lower market capitalization or sales. To reflect the broad sourcing background of Board of Directors members, the peer group consists of 13 companies2, which are listed on the Swiss stock exchange SIX. The peer group includes companies from health care and life science, production and manufacturing, and technology. In comparison to the peer group, Tecan broadly sits at or slightly below the median in terms of market capitalization, sales and headcount. The benchmarking indicated that the compensation structure of Tecan's Board of Directors is largely in line with market practices. However, the total compensation is positioned below the market median for most roles. As a result, a potential increase in the board retainer and committee fees could be considered. Given the challenging market environment in 2024, the Compensation Committee advised against proposing a compensation increase at the 2025 Annual General Meeting. This topic will be reconsidered in 2025.

COMPENSATION PRINCIPLES

Tecan applies a set of uniform compensation policies, which are systematic, transparent and focused on the longterm perspective.

In line with good corporate governance, the compensation for the Board of Directors is fixed and does not contain any performance-based elements. This strengthens the Board's independence in exercising its supervisory duties towards executive management. The fixed compensation is delivered in cash and in shares to strengthen the alignment with shareholders' interests.

The compensation for the members of the Management Board is based on the following factors: financial performance of the Company, achievement of strategic goals including corporate sustainability goals, position within the Management Board and labor market situation. The ultimate goal of the compensation system is to attract and retain highly qualified and motivated employees, to ensure their long-term loyalty to the Company, incentivize performance and to align their interests with those of Tecan's shareholders. The fixed and variable cash compensation programs are designed to cover the basic requirements, while the long-term incentive plan aligns total compensation with the long-term financial success of the Group and the value creation for shareholders of the Company.

A more defined claw back clause came into effect on January 1, 2024. This clause formalizes Tecan's right in case of fraud, willful misconduct or a restatement of financial results to reclaim any part of the short-term or long-term incentive payment linked to misstated financial indicators, during a period of three years preceding the occurrence of a claw back event.

¹ Management Board Peer Group

European Companies: Lonza Group AG, Mettler-Toledo International Inc, Eurofins Scientific SE, Smith & Nephew PLC, Carl Zeiss Meditec AG, Qiagen NV, GN Store Nord A/S, Evotec SE, Elekta AB, LivaNova PLC, Siegfried Holding AG, Bachem Holding AG;

US Companies: PerkinElmer Inc, Bio-Techne Corp, Bruker Corp, Sotera Health Co, Neogenomics Inc, Medpace Holdings Inc.

² Board of Directors peer group: Bachem ,Belimo, Bucher, Clariant, Daetwyler, Galenica, Logitech, SFS, Siegfried, SIG Combibloc, Temenos, VAT Group, Ypsomed

COMPENSATION SYSTEM OF THE BOARD OF DIRECTORS

There is no performance-based compensation for Board members and members of the Board of Directors are not insured in the Company pension plan. The fixed compensation consists of a fee for services paid in cash and in Restricted Share Units (RSUs), as well as additional committee fees paid in cash. The cash compensation is paid in two settlements in May and November, while the RSUs are allocated annually at the beginning of the term of office on the basis of the Tecan share's average closing price on the SIX Swiss Exchange during the first four months of the

relevant financial year. The RSUs fully vest and are converted into Tecan shares upon completion of the annual term, or pro rata in the event of an early exit.

The Compensation Committee does not see the necessity of proposing adjustments to the compensation levels at the upcoming Annual General Meeting. The compensation of the Board of Directors was approved by the Board of Directors, and at the 2024 Annual General Meeting, as described in table [1] below:

Table [1]:

		Until 2024 Annual General Meeting			Since 2024 Annual General Meeting
In CHF per year (gross)	Chair of the Board	Vice-chair of the Board	Member of the Board	Chair of the Board	Member of the Board
Fixed basic fee (cash)	200,000	90,000	80,000	200,000	80,000
Fixed basic fee (shares)	100,000	55,000	45,000	100,000	45,000

	Until 2024 Annual General Meeting		Since 2024 Annual General Meeting
	Committee Chair	Committee Member	Committee Chair	Committee Member
Audit Committee	30,000	10,000	30,000	10,000
Compensation Committee	30,000	10,000	30,000	10,000
Nomination and Governance Committee	30,000	10,000	30,000	10,000

In addition, members of the Board of Directors receive committee fees for ad-hoc committee meeting participation. They receive reimbursement for business travel expenditures incurred, and a travel fee (for members located overseas only).

COMPENSATION SYSTEM OF THE MANAGEMENT BOARD

The compensation system for members of the Management Board (including the CEO) did not change compared to the previous year. It is defined in several regulations adopted by the Board of Directors and comprises:

fixed base salary
employee benefits, such as pension benefits, company car and expense allowance
short-term variable cash compensation
long-term equity incentive award, as a fixed monetary amount which is converted into shares and serves as initial grant for the Performance Share Matching Plan (PSMP)

	Vehicle	Purpose	Plan period	Performance measured
Fixed base salary	Monthly salary in cash	Attract and retain	Continuous
Benefits	Monthly benefits	Attract and retain	Continuous
Short-term variable cash compensation	Annual bonus in cash	Reward annual performance	1 year	Sales growth Adjusted EBITDA margin Strategic corporate sustainability goals achievement
Long-term equity incentive award – PSMP	Grant of initial shares and matching shares	Reward long-term performance Align with shareholders' interests	3 year	Sales growth Adjusted EBITDA margin

Structure of the compensation system Structure of the compensation system Management Board

For illustrative purposes only. Does not reflect actual data.

The compensation structure is based on a variable pay policy adopted by the Board of Directors, which provides for a total target cash compensation determined individually, consisting of a fixed base salary and a short-term variable cash compensation component. The total target cash compensation (assuming 100% target performance achievement under the short-term variable cash compensation) is weighted as follows:

CEO: 60% fixed base salary and 40% short-term variable cash compensation
other members of the Management Board: 70% fixed base salary and 30% short-term variable cash compensation

In addition, members of the Management Board are eligible for an annual grant under the long-term equity incentive plan (PSMP). The short-term and long-term incentive plans are primarily based on the same underlying drivers of shareholder value: sales growth and improvements in operating profitability. In the life sciences and healthcare sector Tecan's ambition is to outgrow the market sustainably and with continued, simultaneous improvements in profitability. Therefore, Tecan finds these two parameters to be the best indicators of the creation of shareholder value in the Company's industry. A key difference between the short- and long-term incentives plans is the inclusion of a meaningful percentage share of specific timebound targets in the short-term incentive plan.

The compensation is subject to mandatory employer social security contributions (AHV/ALV). These contributions are paid by Tecan and are disclosed in the Compensation Report in compliance with Tecan's reporting obligations.

FIXED BASE SALARY AND BENEFITS

The fixed base salary is a component of compensation paid in cash, typically monthly. It reflects the scope and key responsibilities of the role as well as the qualifications and skills required to perform the role, along with the employee's skill set and experience.

Fixed base salaries of the Management Board are reviewed annually, taking into consideration the benchmark information, market movement, economic environment, and individual performance.

In addition, the members of the Management Board participate in the pension and insurance plan of Tecan which is also offered to all employees in Switzerland. Benefits consist mainly of contributions to the retirement and insurance plan which is designed to provide a reasonable level of protection for employees and their dependents with respect to the risk of retirement, disability, death, and long-term illness. Members of the Management Board are also provided with a company car and are eligible for an expense allowance in line with the expense regulation, which is approved by the Swiss tax authorities.

The monetary value of that and other elements of compensation is evaluated at fair value and is included in the compensation table in table [5].

SHORT-TERM VARIABLE CASH COMPENSATION

The short-term variable cash compensation is an annual variable incentive designed to reward the performance of the Group over a time horizon of one year.

The short-term variable cash compensation target (i.e., at 100% target achievement of the performance objectives) is expressed as a proportion of the total target cash compensation, as explained above, i.e., 40% of the total target cash compensation for the CEO and 30% for the other members of the Management Board.

In 2024 Tecan continued to offer all members of the Management Board a harmonized set of performance objectives. Hence, there are no individual performance goals in the short-term variable cash compensation, and it is solely based on Group financial performance objectives and corporate sustainability goals. The ambitious growth and profitability targets are set annually before the beginning of the financial year by the Board of Directors and assessed at the year end. For 2024, the same underlying financial performance indicators were applied as in previous years: sales growth in local currencies and the adjusted EBITDA margin of the Group. They are equally weighted and account for 80% of the short-term variable cash compensation. The corporate sustainability goals amount to 20% of the short-term variable cash compensation and are defined at Group level based on the strategic sustainability priorities of the Company. For 2024, the sustainability goals were related to environmental, social and governance aspects. For social aspects, the focus was on enhancing Tecan's working culture and leadership competences. For environment and governance, an ESG data management platform and related global processes were implemented, which will enable closer tracking of Tecan's progress against greenhouse gas emissions reduction goals. For each performance objective, the Board of Directors determines a threshold level of performance below which the payout percentage is 0%, a target level of performance corresponding to a 100% payout and a maximum level of performance, above which the payout is capped at 200%. Payout levels between the threshold, the target and the maximum are calculated by linear interpolation.

Looking ahead, the performance objectives for Management Board members responsible for the Life Sciences Business and Partnering Business divisions will be adjusted to include division-specific revenue targets in 2025. This shift from focusing solely on group targets to incorporating both group and divisional targets for revenue-generating divisions reflects a stronger emphasis on topline growth within each division, while still maintaining the group's profitability margin.

In addition, the Articles of Incorporation stipulate that the short-term variable cash compensation may not exceed 150% of the fixed salary for the CEO and 100% for the other members of the Management Board.

The respective weightings of the performance objectives are included in illustration [4].

Illustration [4]: Performance objectives for the short-term variable cash compensation

2024 objectives	Rationale/driver	Weighting
Sales growth in local currencies (Group)	To drive the top-line growth of Tecan	40%
Adjusted EBITDA margin (Group)	To drive the bottom-line profitability of Tecan	40%
Corporate sustainability goals	To drive strategic initiatives to manage Tecan's environmental,
	social and governance impact	20%
Total		100%

LONG-TERM EQUITY INCENTIVE AWARD – PERFORMANCE SHARE MATCHING PLAN (PSMP)

In addition to the cash compensation, the members of the Management Board participate in a long-term equity incentive award, the Performance Share Matching Plan (also referred to as executive restricted stock). The PSMP consists of an initial grant of registered shares and a potential subsequent allocation of matching shares based on the achievement of performance objectives during a three-year plan period.

The target amount of the initial grant is expressed as a fixed monetary amount, which is converted into shares based on the Tecan share's average closing price on the SIX Swiss Exchange during the first four months of the relevant financial year. The shares allocated are blocked for three years – starting in the grant year as "year one". For each granted share, members of the Management Board are eligible to receive additional shares ("matching shares") at the end of the three-year measurement cycle if certain performance objectives are reached. This mechanism ensures that the interests of the Management Board are aligned with those of the shareholders, and it also ensures a permanent minimum level of share ownership of the CEO and of each member of the Management Board that is equivalent to the initial grants of three years.

An alternative share-blocking period of five years was discussed with stakeholders and considered in 2023. As peer benchmarking has shown that Tecan's Management Board compensation is already structured towards longer term rather than short-term reward relative to peers, increasing this emphasis further with a longer share-blocking period of five years was assessed as being on balance not supportive of Tecan's talent attraction and retention ambitions. To avoid this effect, a five-year blocking period would have to be offset with higher short-term rewards, and the overall result would be less aligned with the interests of Tecan's shareholders.

Depending on the performance achievement during the three-year period, members of the Management Board may receive from 0 up to 2.5 matching shares for each share granted in year one. The performance is assessed using a payout matrix based on two performance criteria: sales growth in local currencies and adjusted EBITDA margin. The matrix combines the performance of each of the criteria to calculate the payout, thus providing for a balanced focus on both top-line and bottom-line achievements. Every year, Tecan's Board of Directors reviews and approves a rolling five-year mid-term business plan presented by the Management Board, including targets for sales growth in local currencies and adjusted EBITDA margin. In the event that the mid-term targets are achieved for the three years covering a specific PSMP, an additional 1.25 matching shares for each initial share will be allocated to members of the Management Board. A payout factor of 2.5 would require an achievement significantly above the defined mid-term targets on the two performance criteria. An achievement level below a certain threshold on any of the criteria results in no additional matching shares. Different combinations of sales growth and adjusted EBITDA margin achievements within those ranges lead to payouts between a factor of 0 and a factor of 2.5.

The parameter grid is specified each year on a forward-looking basis for the coming three-year period (i.e., financial objectives are pre-determined upfront). Prospective disclosure of actual examples of implementation of Tecan's Performance Share Matching Plan for the threeyear cycle 2024–2026 is shown via the chart and table further below. These show that the design of the PSMP is effective: in line with Tecan's ambitious target-setting, substantial progress needs to be made to reach the maximum payout factor of 2.5 upon expiry of the performance cycle.

In case of voluntary resignation (other than for retirement), the entitlement to any matching shares is forfeit. The initial shares granted are subject to a regular blocking period. In case of death, invalidity or change of control, the initially granted shares deblock immediately with an allocation of matching shares as soon as possible after such occurrence. In case of a termination for cause of the employment contract by the employer, any entitlement to matching shares is forfeited and any initial grants of each running cycle have to be returned by the employee. The immediate unblocking of shares in the event of a change of control was a topic reviewed with stakeholders in 2023, in particular the concern that this clause in the PSMP could hinder a change of control. The total value of shares in scope of this consideration has a strong influence on whether such an unblocking provision could hinder or rather facilitate a change of control. In Tecan's case, the value of shares in scope relative to the total value of the company and importance of Management Board facilitation for a beneficial change of control opportunity leads the Board of Directors to the conclusion that the clause regarding the immediate unblocking of shares should continue to stay in effect for the Performance Share Matching Plan.

Illustration [5]: Prospective performance measures for the performance matching shares (examples) for three-year cycle 2024-2026

Performance measures	Sales growth		Adjusted EBI	TDA
Driver/rationale	To drive top-line of the company	growth	To drive the	bottom-line profitability
Weighting	Two-thirds		One-third
Payout matrix		Sales growth
	Threshold	Threshold	Target	Cap
	Target	Factor 0
	Adjusted EBITDA Larget		Factor 0.1 - 2.4	Factor 2.5
	Сар			1 40101 2.3

Table [2]: Prospective performance measures for the performance matching shares (examples) for three-year cycle 2024-2026

Payout matrix	Sales growth (CAGR) in local currency	Adjusted EBITDA margin
(actual examples of sales growth and EBITDA margin combination for a payout factor of 0.5)	4.0%	20.5%
	10.0%	18.0%
	14.0%	16.75%
Payout matrix (actual examples of sales growth and EBITDA margin combination for	Sales growth (CAGR) in local currency	Adjusted EBITDA margin
	4.0%	21.25%
	6.0%	20.0%
a payout factor of 1.2)	12.0%	18.25%
Payout matrix	Sales growth (CAGR) in local currency	Adjusted EBITDA margin
(actual examples of sales growth and EBITDA margin combination for a payout factor of 2.5)	4.5%	22.75%
	8.0%	21.25%
	14.0%	19.0%

EMPLOYMENT CONTRACTS

Members of the Management Board are employed under employment contracts of unlimited duration. The employment contract of the CEO is subject to a notice period of 12 months, while all other employment contracts of members of the Management Board are subject to a notice period of 6 months. Management Board members are not contractually entitled to any severance payments or any change of control provisions other than those under the PSMP termination provisions. Their contracts do not contain non-competition provisions.

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Tecan Annual Report 2024 Compensation report

EXTERNAL MANDATES

External mandates as required by the Swiss Code of Obligations pursuant to Art. 734e are shown below table [3].

Table [3]: Members with external mandates, as per December 31, 2024 (audited)

Mandates in listed companies		Mandates in non-listed companies
Board of Directors
Dr. Lukas Braunschweiler (Chairman)	Sonova Holding AG (Stäfa, CH), Member of the Board of Directors1	none
Myra Eskes	none	none
Dr. Oliver Fetzer	none	none
Matthias Gillner	none	Hilti Group AG (Schaan, FL), Member of the Board of Directors and the Board of Trustees of the Martin Hilti Family Trust 1
Dr. Karen Huebscher	Sandoz Group (Basel, CH), Vice-Chairwoman of the Board of Directors1	BBI Group (Crumlin, UK), Member of the Board of Directors1 Ivoclar (Schaan, FL), Member of the Board of Directors
Dr. Christa Kreuzburg	none	none
Monica Manotas	none	none
Dr. Daniel R. Marshak	none	RareCyte, Inc. (Seattle, USA), Member of the Board of Directors1
Management Board
Dr. Achim von Leoprechting	none	none
Tania Micki	ASM International (Almere, NL), Member of the Board of Directors	EHL Holding SA (Lausanne, CH), Member of the Board of Directors and the Board of Trustees of the EHL Foundation1
Mukta Acharya	none	none
Ralf Griebel	none	none
Ulrich Kanter	none	Toolpoint for Lab Science (Egg, CH), Member of the Board of Directors1
Erik Norström	none	Labforward GmbH (Berlin, Germany), Observer of the Board of Directors1
Ingrid Pürgstaller	none	none
Andreas Wilhelm	none	none
Dr. Wael Yared	none	none

¹ External mandate already existed in previous reporting period.

Tecan Annual Report 2024 Compensation report

COMPENSATION TO THE BOARD OF DIRECTORS (AUDITED)

Table [4]: Annual compensation to the board of directors in 2024 and 2023

CHF 1,000	Year	Fixed fee	Committee fee	Total cash compensation	Social benefits1	Share award plan: shares granted (number)2	Fair value of shares granted3	Total compensation
Dr. Lukas Braunschweiler	2024	200	–	200	17	253	82	299
(Chairman)	2023	200	3	203	18	256	98	319
Myra Eskes	2024	80	20	100	11	114	37	148
	2023	80	22	102	11	115	44	157
Dr. Oliver S. Fetzer	2024	80	23	103	–	114	37	140
	2023	80	33	113	–	115	44	157
Matthias Gillner	2024	80	30	110	11	114	37	158
	2023	53	5	58	4	–	–	62
Dr. Karen Huebscher	2024	80	27	107	11	114	37	155
	2023	80	42	122	13	115	44	179
Dr. Christa Kreuzburg	2024	80	40	120	9	114	37	166
	2023	80	42	122	13	115	44	179
Monica Manotas	2024	53	13	66	–	–	–	66
	2023	–	–	–	–	–	–	–
Dr. Daniel R. Marshak	2024	80	20	100	-	114	37	137
	2023	80	23	103	-	115	44	147
Total	2024	733	173	906	59	937	304	1,269
	2023	683	177	860	62	972	372	1,294

¹ Employer's contribution to social security.

At the 2023 Annual General Meeting, shareholders approved a maximum aggregate compensation amount of CHF 1,450,000 for the Board of Directors for the compensation period from the 2023 Annual General Meeting until the 2024 Annual General Meeting. The actual compensation paid to the Board of Directors for 2024 was CHF 1,269,000.

At the 2024 Annual General Meeting, shareholders approved a maximum aggregate compensation amount of CHF 1,700,000 for the Board of Directors for the term from the 2024 Annual General Meeting until the 2025 Annual General Meeting. This compensation period is not completed yet and a conclusive assessment will be provided in the 2025 Compensation Report.

COMPENSATION TO THE MANAGEMENT BOARD (AUDITED)

COMPENSATION AT GRANT VALUE

The table [5] shows the compensation of the CEO and the other members of the Management Board granted in the reporting year.

² Vesting condition: Graded vesting from May 1, 2023 to April 30, 2024 (Share Plan BoD 2023) and from May 1, 2024 to April 30, 2025 (Share Plan BoD 2024). Vested shares are transferred at the end of the service period (April 30, 2024 and April 30, 2025, respectively). The shares are fully included in the amount of fair value of shares granted.

³ Formula for 2023: Shares granted in 2023 * fair value at grant (CHF 383.60) and formula for 2024: Shares granted in 2024 * fair value at grant (CHF 325.60).

Table [5]: Granted compensation

										Number of granted / awarded shares
CHF 1,000 (gross amounts)	Year	Fixed Base Salary	Taxable fringe benefits	Social benefits1	Short term variable compen sation2	Fair value of PSMP initial shares (in the year of grant)3	Fair value Total of PSMP compen matching sation shares (in (granted) the year of grant)4	PSMP: number of shares initial grant	PSMP: number of matching shares (at factor 1.25)	PSMP: number of matching shares (at maximum)
Dr. Achim von Leoprechting5	2024	675	11	296	136	850	1,063	3,031	2,611	3,264	6,528
(CEO)	2023	671	15	342	380	774	967	3,149	2,017	2,521	5,043
Tania Micki6	2024	398	12	174	52	416	520	1,572	1,277	1,596	3,193
(CFO)	2023	396	11	197	144	387	484	1,619	1,009	1,261	2,523
Other members of the	2024	2,264	325	1,042	291	2,034	2,543	8,498	6,299	7,874	15,748
Management Board7	2023	2,166	64	1,168	790	2,008	2,511	8,696	5,234	6,543	13,087
Total	2024	3,337	348	1,512	479	3,300	4,126	13,101	10,187	12,734	25,468
	2023	3,233	90	1,707	1,314	3,169	3,962	13,475	8,260	10,325	20,653

¹ Employer's contribution to social security and contributions to post-employment benefit plans (including social security on shares transferred during the reporting period).

Explanatory comments on the compensation table:

Details for the achievement of targets for short-term variable cash compensation in 2024 are given below.

At the 2023 Annual General Meeting, shareholders approved a maximum aggregate compensation amount of CHF 20,500,000 for the Management Board for the financial year 2024. The actual compensation awarded to the Management Board in 2024 was CHF 13,101,000 and is therefore within the approved limits.

Illustration [6]: Compensation mix

Salary structure Management Board (without CEO)

Salary structure CEO

² Payment will be made in the following year.

³ Formula for 2023: Shares granted in 2023 * fair value at grant (CHF 383.60).

³ Formula for 2024: Shares granted in 2024 * fair value at grant (CHF 325.60). Exception: fair value at grant for Mukta Acharya, who started effective August 15, 2024, was CHF 280.20.

⁴ Formula for 2023: Shares granted in 2023 * fair value at grant (CHF 383.60) * 1.25. The disclosed amount corresponds to the fair value of the matching shares at the time of grant (e.g. based on performance achievement at target). This value may differ from the value of the accruals disclosed under IFRS reporting, as those are based on a best-estimate at the end of the reporting year.

⁴ Formula for 2024: Shares granted in 2024 * fair value at grant (CHF 325.60) * 1.25. The disclosed amount corresponds to the fair value of the matching shares at the time of grant (e.g. based on performance achievement at target). This value may differ from the value of the accruals disclosed under IFRS reporting, as those are based on a best-estimate at the end of the reporting year. Exception: fair value at grant for Mukta Acharya, who started effective August 15, 2024, was CHF 280.20.

⁵ Member of the Management Board with the highest compensation in 2023 and 2024.

⁶ Member of the Management Board with the second highest compensation in 2023 and 2024.

⁷ 2023: Total seven members. 2024: Total eight members. Figures for Other Members of the Management Board includes an overlap of 2.5 months for the position of Executive Vice President, Life Science Business. Klaus Lun left Tecan effective 31.10.2024. His successor, Mukta Acharya, took over the position effective August 15, 2024.

Tecan Annual Report 2024 Compensation report

PERFORMANCE IN 2024

Reported sales for the Group for fiscal year 2024 decreased in comparison to fiscal year 2023 by 11.5% in local currencies, leading to a payout ratio of 0% for this component of the short-term variable cash compensation.

The adjusted EBITDA target resulted in a payout ratio of 38% for this component.

The sustainability objectives for cultural development, environment and governance achieved a ratio of 75% combined for these targets.

The financial performance indicators were equally weighted and accounted for 80% of the short-term variable cash compensation and the sustainability targets accounted for the remaining 20%. A detailed overview of the individual achievements relative to their set target is shown in illustration [7] below.

In the year under review, the 2022 to 2024 PSMP cycle came to an end. In the 2022 Annual Report the performance objectives for the three-year cycle 2022-2024 were disclosed prospectively, just as the current cycle is set out in table [2] above.

The actual performance achievement over the performance period resulted in a matching share factor of 0. This reflects for the cycle 2022 to 2024 an average growth rate of 0.4% and an average adjusted EBITDA margin of 19.8%.

Illustration [7]: 2024 short-term incentive target achievement

COMPENSATION TO FORMER MEMBERS OF GOVERNING BODIES

No compensation was paid to former members of the Board of Directors or the Management Board in 2024 after the end of their term of office or contract with Tecan, respectively.

COMPENSATION TO RELATED PARTIES

No compensation was paid in 2024 or the previous year to parties related to present or former members of the Board of Directors or the Management Board.

LOANS AND CREDITS

CURRENT AND FORMER MEMBERS OF GOVERNING BODIES

Neither in 2024 nor in the previous year were any loans or credits extended to current or former members of the Board of Directors or the Management Board that remained outstanding at the end of the year.

RELATED PARTIES

Neither in 2024 nor in the previous year were any loans or credits extended to related parties of current or former members of the Board of Directors or the Management Board that remained outstanding at the end of the year.

Tecan Annual Report 2024 Compensation report

SHAREHOLDINGS OF THE MEMBERS OF THE BOARD OF DIRECTORS AND THE MANAGEMENT BOARD IN 2024 (AUDITED)

SHARE AND OPTION OWNERSHIP OF THE BOARD OF DIRECTORS AND MANAGEMENT BOARD

For details of the employee participation plans please refer to note 12.4 of the consolidated financial statements.

Table [6]: Share and option ownership of the Board of Directors

	Year	Total options	Total shares
Number
Dr. Lukas Braunschweiler (Chairman)	2023	–	1,790
	2024	–	2,043
Myra Eskes	2023	–	115
	2024	–	229
Dr. Oliver S. Fetzer	2023	–	3,256
	2024	–	3,370
Matthias Gillner	2023	–	70
	2024	–	184
Dr. Karen Huebscher	2023	–	983
	2024	–	1,097
Dr. Christa Kreuzburg	2023	–	115
	2024	–	–
Monica Manotas1 (since April 2024)	2023	–	–
	2024	–	–
Dr. Daniel R. Marshak	2023	–	758
	2024	–	872
Balance at December 31, 2023		–	7,087
Balance at December 31, 2024		–	7,795

¹ Shares and share options in 2023 are not disclosed because the member of the Board joined after year-end 2023.

Table [7]: Share and option ownership of the Management Board

	Year	Total options	Total shares
Number
Dr. Achim von Leoprechting (CEO)	2023	–	4,998
	2024	–	6,329
Tania Micki (CFO)	2023	–	2,838
	2024	–	3,309
Mukta Acharya1	2023	–	–
	2024	901	708
Ralf Griebel	2023	–	2,312
	2024	–	2,515
Ulrich Kanter	2023	–	2,310
	2024	–	2,475
Dr. Klaus Lun2	2023	–	2,458
	2024	–	–
Erik Norström	2023	–	2,049
	2024	–	2,156
Ingrid Pürgstaller	2023	–	1,839
	2024	–	2,097
Andreas Wilhelm	2023	–	2,012
	2024	–	2,156
Dr. Wael Yared	2023	–	4,361
	2024	–	4,010
Balance at December 31, 2023		–	25,177
Balance at December 31, 2024		901	25,755

¹ Shares and share options in 2023 are not disclosed because the member of the Board joined after year-end 2023.

² Shares and share options in 2024 are not disclosed because the member of the Board stepped down before year-end 2024.

OUTLOOK AND MOTIONS ON COMPENSATION AT THE ANNUAL GENERAL MEETING

At the 2025 Annual General Meeting, the Board of Directors will propose:

the maximum aggregate compensation amount for the Board of Directors, for the next term of office (binding vote)
the maximum aggregate compensation amount for the Management Board, for the financial year 2026 (binding vote)
the 2024 Compensation Report (retrospective advisory vote)

MAXIMUM AGGREGATE COMPENSATION AMOUNT FOR THE BOARD OF DIRECTORS

The maximum aggregate compensation amount for the Board of Directors for the term of office between the 2025 and the 2026 Annual General Meeting submitted to vote is based on the following elements:

the number of members on the Board of Directors stays the same
fixed basic fee paid in cash and restricted share units
committee fees paid in cash
additional committee fees for ad-hoc committees and a travel fee (for members of the Board of Directors located overseas only)

MAXIMUM AGGREGATE COMPENSATION AMOUNT FOR THE MANAGEMENT BOARD

The maximum aggregate compensation amount to the Management Board for the financial year 2026 submitted to vote is based on the following elements:

nine members of the Management Board
short-term variable cash compensation: the maximum amount assumes that the defined performance objectives are significantly exceeded and that the short-term variable cash compensation payout amounts to 200% (maximum)
long-term equity incentive award (PSMP): the maximum amount is based on a matching share factor of 2.5 (maximum). A possible share price appreciation during the three-year vesting period is not considered

Table [8] below shows a comparison between the maximum aggregate compensation amounts approved and the compensation effectively awarded in recent years.

Table [8]: Compensation approved versus awarded (Management Board)

In CHF per year (gross)	Fiscal year 20261	Fiscal year 2025	Fiscal year 2024	Fiscal year 2023
Approved compensation amount	n.a.	20,500,000	20,500,000	20,500,000
Compensation awarded	n.a.	n.a.2	13,101,000	13,473,763

¹ To be proposed to the 2025 Annual General Meeting.

Note: The approved compensation amount is based on the assumption that all performance indicators under both the short-term variable cash compensation and the PSMP will be significantly overachieved and that the payout factor will be at the maximum possible level. The approved compensation amount does not account for any share price appreciation over the three-year period of the PSMP. The awarded compensation amount is based on the short-term variable cash compensation effectively paid and on the fair value of the initial shares and of the matching shares granted under the PSMP in the respective year.

² Compensation period not yet completed.

Ernst & Young Ltd Maagplatz 1 P.O. Box CH-8010 Zurich

Phone: +41 58 286 31 11 www.ey.com/en_ch

To the General Meeting of Tecan Group Ltd., Männedorf Zurich, 7 March 2025

Report of the statutory auditor on the audit of the compensation report

Opinion

We have audited the compensation report of Tecan Group Ltd. (the Company) for the year ended 31 December 2024. The audit was limited to the information pursuant to Art. 734a-734f of the Swiss Code of Obligations (CO) in the tables marked "audited" on pages 126 to 130 of the compensation report.

In our opinion, the information pursuant to Art. 734a-734f CO in the compensation report complies with Swiss law and the Company's articles of incorporation.

Basis for opinion

We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the "Auditor's responsibilities for the audit of the compensation report" section of our report. We are independent of the Company in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the tables marked "audited" in the compensation report, the consolidated financial statements, the stand-alone financial statements and our auditor's reports thereon.

Our opinion on the compensation report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the compensation report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the audited financial information in the compensation report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Board of Directors' responsibilities for the compensation report

The Board of Directors is responsible for the preparation of a compensation report in accordance with the provisions of Swiss law and the Company's articles of incorporation, and for such internal control as the Board of Directors determines is necessary to enable the

preparation of a compensation report that is free from material misstatement, whether due to fraud or error. It is also responsible for designing the remuneration system and defining individual remuneration packages.

Auditor's responsibilities for the audit of the compensation report

Our objectives are to obtain reasonable assurance about whether the information pursuant to Art. 734a-734f CO is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this compensation report.

As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement in the compensation report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.

We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

Ernst & Young Ltd

Licensed audit expert Licensed audit expert (Auditor in charge)

Martin Mattes Dominique Frutiger

ORDER ENTRY AND SALES

Full-year order entry was CHF 903.6 million, a decrease of 12.1% compared to CHF 1,028.1 million in 2023, reflecting a 10.5% decline in local currencies. The Partnering Business segment was impacted by a shift in OEM customer ordering patterns, moving from larger, long-term orders in 2023 to smaller, more regular orders in 2024 as supply chain disruptions had fully normalized. Meanwhile, the Life Sciences Business segment saw moderate order entry growth in local currencies in the second half of 2024 compared to the same period in 2023. Overall, the Group's order entry in the second half decreased by 11.2% in local currencies.

In 2024, reduced spending in the biopharmaceutical industry led to decreased demand for life science research instruments, affecting both the Life Sciences Business and the Partnering Business. Additionally, a general market weakness in China impacted both direct sales and indirect business through global OEM customers. In the Partnering Business, sales were further influenced by specific customer-related factors, including normalized demand patterns following inventory replenishment by a key customer in 2023. As a result, reported sales for the Group in fiscal year 2024 decreased by 13.0% in Swiss francs, totaling CHF 934.3 million (2023: CHF 1,074.4 million). In local currencies, sales were 11.5% below the prior-year period, aligning with the revised sales outlook from October 2024, which anticipated a decline of 12-14%. Sales in the second half decreased by 12.3% in Swiss francs and by 11.3% in local currencies compared to the prior-year period. These sales results were previously communicated in a trading statement on January 8, 2025.

Our profitability was supported by a comprehensive cost-reduction program.

Tania Micki

Sales development 2014-2024

SEGMENT SALES

Life Sciences Business (end-customer business)

Sales in the Life Sciences Business in 2024 reached CHF 397.0 million (2023: CHF 451.8 million or CHF 442.1 million in local currencies), reflecting a decrease of 12.1% in Swiss francs and 10.2% in local currencies. Reduced CAPEX spending by the biopharmaceutical industry globally, along with government and academic customers in the US, resulted in decreased demand for life science research instruments. Additionally, market weakness in China negatively impacted demand, as the announced stimulus program failed to provide any impetus in 2024. Instead, it prompted some customers to delay orders while awaiting funding decisions. Contributing to a more favorable sales development in the Life Sciences Business were recovering consumables sales post-pandemic, a solid service business due to a higher installed base of instruments, and continued strong demand for newly launched products, particularly from genomic diagnostics companies. Recurring sales of services, consumables and reagents increased to 57.6% of segment sales (2023: 52.8%).

In the second half of the year, sales declined by 5.0% in local currencies, following the sharp 15.5% decline in the first half. Sequentially, the Life Sciences Business segment grew by 13.6% in local currencies when comparing the second half of 2024 to the first half.

In the second half of 2024, the Life Sciences Business segment experienced moderate order entry growth in local currencies compared to the same period in 2023, resulting in a book-to-bill ratio slightly above 1 for the full year.

Partnering Business (OEM business)

The Partnering Business generated sales of CHF 537.3 million in 2024 (2023: CHF 622.6 million or CHF 613.1 million in local currencies), marking a decrease of 13.7% in Swiss francs and 12.4% in local currencies. As anticipated, Tecan did not record any meaningful sales from the pass-through of material costs from broker buys in this segment for 2024, compared to CHF 8.0 million in 2023.

The lower demand for life science instrumentation also had a negative impact on the Partnering Business, influencing both the Cavro® OEM components business and the contract development and manufacturing revenues for life science instruments in the Paramit product line. Market weakness in China also impacted the Cavro OEM components business and sales of in-vitro diagnostics systems in the Synergence™ product line to larger global OEM customers with significant exposure to China. However, outside China, sales of in-vitro diagnostics systems in the Synergence product line developed positively, with increased contributions from newly launched systems. Sales in the Paramit product line, which served medical market customers, were negatively affected by normalized demand patterns following the replenishment of depleted inventories in 2023, when supply chain disruptions eased, and by the anticipated reduction in sales from the pure pass-through of material costs. These impacts were specific to a single customer and included a model transition, rather than being related to end market conditions. All these factors had a more pronounced impact in the second half of the year, when segment sales decreased by 15.9% in local currencies.

Order entry in the Partnering Business for the full year decreased slightly more than sales as OEM customers adjusted their ordering patterns, shifting from larger, long-term orders in 2023 to smaller, more regular orders in 2024 as supply chain disruptions had fully normalized. Despite this shift, the book-to-bill ratio remained close to 1.

GROSS PROFIT

Gross profit reached CHF 320.6 million (2023: CHF 390.5 million), which was CHF 69.9m or 17.9% below the prior-year figure. The decline is mainly due to the lower sales volume, which was also the primary factor behind the gross profit margin of 34.3% of sales (2023: 36.3%).

Main effects contributing to the gross profit margin level:

(-) Lower sales volumes
(-) Increased depreciation and cost adjustments
(+) Favorable product mix
(+) Price increases
(+) Efficiency and cost improvements

OPERATING EXPENSES LESS COST OF SALES

In 2024, Tecan successfully reduced operating expenses with a net effect of CHF 9.6 million, while including CHF 8.0 million in restructuring-related costs. Total operating expenses, excluding the cost of sales, amounted to CHF 251.7 million or 26.9% of sales (2023: CHF 261.3 million or 24.3% of sales). This decrease was primarily driven by tight cost control, reduced performance-related compensation, and a decrease in full-time equivalents (FTEs).

Sales and Marketing expenses totaled CHF 110.2 million (2023: CHF 119.6 million), representing 11.8% of sales (2023: 11.1%). They fell by 7.9%, largely due to lower revenue-based compensation, while maintaining the capability to capitalize on market recovery.

In Research and Development (R&D), we sustained strong investment in innovation, with multiple new products in the pipeline. Net R&D expenses slightly decreased to CHF 68.4 million (2023: CHF 69.7 million), but increased as a percentage of sales to 7.3% (2023: 6.5%).

General and Administrative (G&A) expenses rose to CHF 73.2 million (2023: CHF 72.0 million) due to exceptional corporate costs related to IT systems (SAP S/4HANA), M&A activities, and legal fees. However, underlying costs decreased as a result of implemented cost-saving measures. As a percentage of sales, G&A costs increased to 7.8% (2023: 6.7%).

OPERATING PROFIT

Adjusted EBITDA¹ (operating profit before depreciation and amortization) was CHF 164.4 million, down from CHF 220.6 million in 2023. The adjusted EBITDA margin decreased to 17.6% of sales (2023: 20.5%), aligning with the revised margin outlook of 16-18%. The decline was primarily due to lower sales volumes, as profitability is highly volume-dependent. However, profitability was supported by a comprehensive cost-reduction program. Additionally, exchange rate movements in major currencies against the Swiss franc negatively impacted the margin by approximately 40 basis points.

The reported profit before interest and taxes, EBIT, was at CHF 75.6 million (2023: CHF 136.0 million).

EBITDA development 2014-2024

* Adjusted EBITDA for 2020-2024

^1 The adjusted operating profit before depreciation and amortization excludes restructuring costs as well as acquisition- and integration-related costs (+CHF 16.4 million).

SEGMENT PROFITABILITY

Life Sciences Business (end-customer business)

Reported EBIT in this segment (earnings before interest and taxes) reached CHF 39.5 million (2023: CHF 84.4 million). The reported operating profit margin decreased to 9.8% of sales (2023: 18.3%), primarily due to the negative volume effect, which resulted in missing economies of scale. Cost control measures helped alleviate the impact of lower sales volumes and adverse exchange rate effects.

The adjusted EBITDA² (operating profit before depreciation and amortization) for this segment was CHF 79.1 million, compared to CHF 105.5 million in 2023. This reflects an adjusted EBITDA margin of 19.6% of sales, compared to 22.9% in 2023.

Partnering Business (OEM business)

Reported EBIT amounted to CHF 46.6 million (2023: CHF 64.4 million), while the reported operating profit margin reached 8.7% of sales (2023: 10.3%). Similar to the Life Sciences Business segment, lower sales volumes and the resulting negative economies of scale were the main factors affecting margin development.

The adjusted EBITDA² for this segment was CHF 91.1 million, compared to CHF 125.6 million in 2023. This reflects an adjusted EBITDA margin of 16.9% of sales, compared to 20.1% in 2023.

NET PROFIT AND EARNINGS PER SHARE

Adjusted net profit³ was CHF 103.1 million, down from CHF 164.4 million in 2023, when earnings were significantly boosted by a one-time positive effect related to transitional measures from the Swiss tax reform. Adjusted earnings per share were CHF 8.08, compared to CHF 12.88 in 2023.

Earnings per share development 2020-2024

(CHF/share)

* Adjusted earnings per share for 2021-2024

BALANCE SHEET AND EQUITY RATIO

Shareholders' equity at December 31, 2024 was at CHF 1,435.3 million (December 31, 2023: CHF 1,348.9 million). Tecan's equity ratio increased to 67.7% as of December 31, 2024 (December 31, 2023: 65.0%).

CASH FLOW

Cash flow from operating activities was CHF 148.5 million, compared to CHF 160.6 million in 2023. Cash conversion improved to 100.0% of reported EBITDA (2023: 77.5%) mainly driven by a decrease in inventory and receivables. Thanks to solid cash flow management, Tecan's net liquidity position (cash and cash equivalents plus short-term time deposits, less bank liabilities, loans, and the outstanding bond) increased to CHF 153.7 million as of December 31, 2024, up from CHF 112.6 million on December 31, 2023.

^2 The adjusted operating profit before depreciation and amortization for the Life Sciences Business segment excludes restructuring costs as well as acquisition- and integration-related costs (+CHF 6.4 million). The adjusted operating profit before depreciation and amortization for the Partnering Business segment excludes restructuring costs as well as acquisition- and integration-related costs (+CHF 5.3 million).

^3 The calculation of 2024 adjusted net profit and adjusted earnings per share excludes restructuring costs as well as acquisition- and integration-related costs (+CHF 16.4 million) and accumulated amortization of acquired intangible assets (+CHF 19.0 million) and they were calculated with the reported Group tax rate of 13.6%.

RECONCILIATION OF ADJUSTED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

	2023	2024
CHF 1,000 / unaudited
Sales Non-GAAP EBITDA In % of sales Acquisition and integration costs Swiss pension plans: past service costs Depreciation and amortization Adjustment for acquisition-related amortization	1,074,386	934,278
GAAP operating profit (EBIT)	135,967	75,573
Depreciation and amortization	71,330	72,407

	207,297 19.3%	147,980 15.8%

Adjustments for
	17,654	16,434
	(4,358)	–
Non-GAAP adjusted EBITDA	220,593	164,414
In % of sales	20.5%	17.6%
	(71,330)	(66,805)
	19,513	18,983
Non-GAAP adjusted EBIT	168,776	116,592
In % of sales	15.7%	12.5%
Financial result	(2,162)	2,704
Non-GAAP adjusted profit before taxes	166,614	119,296
In % of sales	15.5%	12.8%
Adjusted income taxes	(2,166)	(16,177)
Non-GAAP adjusted net profit	164,448	103,119
In % of sales	15.3%	11.0%
Non-GAAP adjusted basic earnings per share (CHF)	12.88	8.08

FIVE-YEAR CONSOLIDATED DATA

	2020	2021	2022	2023	2024
CHF 1,000
Statement of profit or loss
Sales	730,879	946,623	1,144,261	1,074,386	934,278
Non-GAAP EBITDA	159,106	204,561	214,889	207,297	147,980
	21.8%	21.6%	18.8%	19.3%	15.8%
Non-GAAP adjusted EBITDA	156,531	214,497	229,945	220,593	164,414
	21.4%	22.7%	20.1%	20.5%	17.6%
Operating profit (EBIT)	121,390	145,517	147,835	135,967	75,573
Financial result	(3,163)	(7,592)	(5,350)	(2,162)	2,704
Income taxes	(14,542)	(16,266)	(21,359)	(1,730)	(10,613)
Profit for the period	103,685	121,659	121,126	132,075	67,664
Research and development, gross	(62,043)	(71,867)	(77,890)	(69,740)	(68,387)
Personnel expenses	(259,640)	(306,324)	(349,916)	(332,233)	(303,476)
Depreciation of property, plant and equipment	(9,472)	(12,628)	(16,578)	(24,949)	(20,176)
Depreciation of right-of-use assets	(10,915)	(12,232)	(14,874)	(14,186)	(13,517)
Amortization of intangible assets	(15,056)	(34,184)	(35,602)	(31,659)	(33,112)
Impairment losses	(2,051)	–	–	(536)	(5,602)

Balance sheet
Current assets	777,986	671,859	803,530	850,574	856,306
Non-current assets	330,641	1,324,326	1,312,649	1,223,392	1,265,177
Total assets	1,108,627	1,996,185	2,116,179	2,073,966	2,121,483
Current liabilities	225,018	306,374	336,341	296,912	531,252
Non-current liabilities	149,958	464,916	422,118	428,144	154,900
Total liabilities	374,976	771,290	758,459	725,056	686,152
Shareholders' equity	733,651	1,224,895	1,357,720	1,348,910	1,435,331
Statement of cash flows
Cash inflows from operating activities	208,335	169,855	128,275	160,572	148,541
Capital expenditure in property, plant
and equipment and intangible assets	(41,288)	(39,719)	(36,234)	(34,943)	(30,677)
Acquisition of Paramit Group1	–	(817,447)	–	–	–
Acquisition of a former distributor (asset deal)	–	–	–	–	(1,293)
Dividends paid	(26,242)	(27,612)	(35,597)	(37,024)	(38,320)
Purchase of treasury shares	–	–	–	–	(28,934)
Proceeds from authorized share capital increase, net of transaction costs	–	351,652	–	–	–
Net proceeds from the issuance of a bond	–	249,445	–	–	–

Other information Number of employees (end of period)	2,050	3,291	3,531	3,591	3,265
Number of employees (average)	1,984	2,589	3,380	3,570	3,413

Research and development in % of sales	8.5%	7.6%	6.8%	6.5%	7.3%
Sales per employee	368	366	339	301	274

Information per share
Basic earnings per share (CHF)	8.69	9.95	9.53	10.34	5.30
Gross dividend (CHF)2	1.15	1.40	1.45	1.50	1.50
Payout from statutory capital contribution reserve (CHF)2	1.15	1.40	1.45	1.50	1.50
Total payout (CHF)2	2.30	2.80	2.90	3.00	3.00
Total payout ratio	26.5%	28.1%	30.4%	29.0%	56.6%

¹ Net of cash acquired.

² Payment is made in following year.

³ Proposal to the Annual General Meeting of Shareholders on April 10, 2025.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Notes	2023	2024

4/5/6	1,074,386	934,278
	(683,920)	(613,680)
	390,466	320,598
		(110,170)
7	(69,740)	(68,387)
	(72,049)	(73,161)
10	6,923	6,693
10	(49)	–
4	135,967	75,573
	4,494	5,357
	(1,318)	(3,317)
	(5,338)	664
11	(2,162)	2,704
	133,805	78,277
12	(1,730)	(10,613)
	132,075	67,664

		5.30
		5.29
	13 13	(119,584) 10.34 10.30

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Notes	2023	2024
CHF 1,000
Profit for the period		132,075	67,664
Other comprehensive income
Change in fair value of an unquoted equity instrument designated
at fair value through other comprehensive income		(68)	(5,624)
Related income taxes		–	934
Remeasurement of net defined benefit liability	9.3	(28,442)	19,377
Related income taxes		5,265	(3,572)
Items that will not be reclassified to profit or loss,
net of income taxes		(23,245)	11,115
Translation differences		(104,424)	79,589
Related income taxes		7,676	(9,784)
Items that may be reclassified subsequently to profit or loss,
net of income taxes		(96,748)	69,805
Other comprehensive income, net of income taxes		(119,993)	80,920
Total comprehensive income for the period,
attributable to owners of the parent		12,082	148,584

CONSOLIDATED BALANCE SHEET

	Notes	31.12.2023	31.12.2024
CHF 1,000
Cash and cash equivalents	14	132,965	154,193
Other current financial assets	15	237,303	251,965
Trade accounts receivable	16	158,677	148,561
Contract assets		35,490	35,352
Other accounts receivable		13,016	11,869
Inventories	17	254,368	230,499
Income tax receivables		8,078	11,484
Prepaid expenses		10,677	12,383
Current assets		850,574	856,306
Non-current financial assets	18	5,250	7,367
Property, plant and equipment	19	81,021	78,752
Right-of-use assets	20	64,149	68,576
Intangible assets and goodwill	21	1,021,217	1,069,262
Deferred tax assets	12.2	51,755	41,220
Non-current assets		1,223,392	1,265,177
Assets		2,073,966	2,121,483

LIABILITIES AND EQUITY	Notes	31.12.2023	31.12.2024
CHF 1,000
Current financial liabilities	22	12,853	266,129
Trade accounts payable		39,202	33,611
Other accounts payable		25,539	27,579
Current contract liabilities	23	82,475	79,724
Current government grants	24	5,534	4,987
Income tax payables		21,923	32,250
Accrued expenses		82,297	61,447
Current provisions	25	27,089	25,525
Current liabilities		296,912	531,252
Non-current financial liabilities	22	303,854	59,952
Non-current contract liabilities	23	8,482	9,104
Non-current government grants	24	17,985	14,961
Liability for post-employment benefits	9.3	43,983	28,367
Non-current provisions	25	8,535	6,009
Deferred tax liabilities	12.2	45,305	36,507
Non-current liabilities		428,144	154,900
Total liabilities		725,056	686,152

Share capital		1,278	1,283
Capital reserve		406,994	408,347
Treasury shares		–	(28,934)
Retained earnings		1,067,616	1,111,808
Translation differences		(126,978)	(57,173)
Shareholders' equity	26	1,348,910	1,435,331
Liabilities and equity		2,073,966	2,121,483

CONSOLIDATED STATEMENT OF CASH FLOWS

	Notes	2023	2024
CHF 1,000 Profit for the period		132,075	67,664

Adjustments for
Depreciation, amortization and impairment losses	19/20/21	71,330	72,407
Change in government grants, liability for post-employment benefits and provisions	9.3/24/25	(11,562)	(8,120)
Interest income	11	(4,494)	(5,357)
Interest expenses	11	974	2,574
Income taxes	12	1,730	10,613
Equity-settled share-based payment expense	9.4	14,819	4,087
Other non-cash items		10,089	(6,687)

Change in working capital
Trade accounts receivable	16	(13,452)	13,825
Inventories	17	29,473	35,482
Trade accounts payable		7,446	(7,235)
Contract liabilities	23	(13,538)	(6,311)
Other changes in working capital (net)		(28,226)	(8,080)

Income taxes paid		(36,092)	(16,321)
Cash inflows from operating activities		160,572	148,541

Investment in time deposits		(180,000)	(510,000)
Repayment of time deposits		130,000	490,000
Investment in other financial assets	29.2	(3,691)	(2,064)
Interest received		4,257	5,359
Acquisition of a former distributor	3.2	–	(869)
Settlement of contingent consideration arising from business combination	3.2	–	(424)
Purchase of property, plant and equipment	19	(19,433)	(15,279)
Proceeds from sale of property, plant and equipment		142	68
Investment in intangible assets	21	(15,510)	(15,398)
Cash outflows from investing activities		(84,235)	(48,607)

Proceeds from employee participation plans	26.4	1,798	1,358
Dividends paid	26.6	(37,024)	(38,320)
Purchase of treasury shares	26.3	–	(28,934)
Payment of lease liabilities	22	(13,892)	(12,965)
Increase in/repayment of short-term credit facilities	22	5	(5)
Repayment of bank loans	22	(612)	-
Interest paid		(843)	(2,436)
Cash outflows from financing activities		(50,568)	(81,302)
Effect of exchange rate fluctuations on cash held		(4,245)	2,596

Increase in cash and cash equivalents		21,524	21,228
Cash and cash equivalents at January 1		111,441	132,965

Cash and cash equivalents at December 31	14	132,965	154,193

Tecan Annual Report 2024 Consolidated financial statements

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Notes	Share capital	Capital reserve	Treasury shares	Retained earnings	Translation differences	Total shareholders' equity
CHF 1,000
Balance at January 1, 2023		1,273	405,201	–	981,476	(30,230)	1,357,720
Profit for the period		–	–	–	132,075	–	132,075
Other comprehensive income,
net of income taxes		–	–	–	(23,245)	(96,748)	(119,993)
Total comprehensive income for the period		–	–	–	108,830	(96,748)	12,082
New shares issued based on employee
participation plans	26.4	5	1,793	–	–	–	1,798
Share-based payments, net of income taxes	9.4	–	–	–	14,334	–	14,334
Dividends paid	26.6	–	–	–	(37,024)	–	(37,024)
Balance at December 31, 2023		1,278	406,994	–	1,067,616	(126,978)	1,348,910
Profit for the period		–	–	–	67,664	–	67,664
Other comprehensive income,
net of income taxes		–	–	–	11,115	69,805	80,920
Total comprehensive income for the period		–	–	–	78,779	69,805	148,584
New shares issued based on employee
participation plans	26.4	5	1,353	–	–	–	1,358
Share-based payments, net of income taxes	9.4	–	–	–	3,733	–	3,733
Dividends paid	26.6	–	–	–	(38,320)	–	(38,320)
Purchase of treasury shares	26.3	–	–	(28,934)	–	–	(28,934)
Balance at December 31, 2024		1,283	408,347	(28,934)	1,111,808	(57,173)	1,435,331

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1 REPORTING ENTITY

Tecan (www.tecan.com) is a global provider of laboratory automation. As an original equipment manufacturer (OEM), Tecan also develops and manufactures OEM instruments, components and medical devices that are then distributed by partner companies. Founded in Switzerland in 1980, the Group has more than 3,000 employees, with manufacturing, research and development sites in Europe, North America and Asia, and maintains a sales and service network in over 70 countries.

The ultimate parent company is Tecan Group Ltd., a limited company incorporated in Switzerland, whose shares are traded on the SIX Swiss Exchange (TECN; ISIN CH0012100191). Tecan Group Ltd.'s registered office is located at Seestrasse 103, 8708 Männedorf, Switzerland.

2 SUMMARY OF MATERIAL ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION

These financial statements are the consolidated financial statements of Tecan Group Ltd. and its subsidiaries (together referred to as the 'Group') for the year ended December 31, 2024. The financial statements are prepared in accordance with IFRS Accounting Standards and their interpretations issued by the International Accounting Standards Board (IASB).

The financial statements are presented in Swiss francs (CHF), rounded to the nearest thousand. They are prepared on the historical cost basis except for derivative financial instruments, one investment in an unquoted equity instrument and contingent considerations in connection with business combinations, which are stated at their fair value.

The consolidated financial statements were authorized for issue by the Board of Directors on March 7, 2025. Final approval is subject to acceptance by the Annual General Meeting of Shareholders on April 10, 2025.

2.2 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of these consolidated financial statements requires management to make assumptions and estimates that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent liabilities at the date of these financial statements. If in the future such assumptions and estimates deviate from the actual circumstances, the original assumptions and estimates will be modified as appropriate in the year in which the circumstances change.

The valuation of the following material positions is based on critical accounting estimates and judgments:

2.2.1 Revenue recognition – performance obligations satisfied over time

The Group applies the cost-to-cost method in accounting for performance obligations satisfied over time as outlined in the accounting and valuation principles (see note 2.7.2). The use of the cost-to-cost method requires management to determine the stage of completion by reference to the contract costs incurred for work performed to date in proportion to the estimated total contract costs. Based on the estimated stage of completion, a respective portion of the expected revenue is recognized. If circumstances arise that may change the original estimates of revenues, costs or extent of progress towards completion, estimates are revised. These revisions may result in increases or decreases in estimated revenues or costs and are reflected in the statement of profit or loss in the period in which the circumstances that give rise to the revision become known to the management. See notes 5 and 23 for more details.

2.2.2 Performance share matching plan (PSMP) – matching share factor

The Group established performance share matching plans. The number of matching shares is determined based on the following formula: number of shares from initial grant that qualify for matching shares, multiplied by the matching share factor. The matching share factor is dependent on the achievement of specific performance targets. In any case, the matching share factor will not be lower than 0.0 or higher than 2.5. A change in estimate of the matching share factors applied in the current period, will impact the results of future periods. See note 9.4 for more details.

2.2.3 Income taxes – general and Pillar Two

On December 31, 2024, the net liability for current income taxes was CHF 20.8 million and the net asset for deferred taxes was CHF 4.7 million. Significant estimates are required in determining the current and deferred assets and liabilities for income taxes. Various internal and external factors may have favorable or unfavorable effects on the income tax assets and liabilities. These factors include, but are not limited to, changes in tax laws, regulations and/or rates (particularly in relation to the Swiss tax reform, see note 12.2.3 for more details), changing interpretations of existing tax laws or regulations (particularly in relation to the acceptance of intra-group transfer prices), and changes in overall levels of pre-tax earnings. Such changes could impact the assets and liabilities recognized in the balance sheet in the current and future periods.

In 2019, the Organization for Economic Co-operation and Development ("OECD") started a two-pillar approach to address the "Tax Challenges of the Digital Economy" resulting from the 2015 Base Erosion and Profit Shifting (BEPS) project. A stated goal of the Pillar One proposal is to allocate a greater share of residual profits to market/ user jurisdictions. The Pillar Two goal suggests an implementation of the proposed 15% global minimum tax. Tecan is within the scope of Pillar Two.

In the public vote on June 18, 2023 Swiss voters approved a new constitutional provision on the implementation of the "Pillar Two Model Rules". This provision gives the Swiss Federal Council the power to implement the "Pillar Two Model Rules" via a temporary ordinance. On December 22, 2023, the Swiss Federal Council decided to implement the Qualified Domestic Minimum Top-up Tax via the ordinance, starting for financial years on or after January 1, 2024. This Qualified Domestic Minimum Top-up Tax will provide for a 15% minimum taxation based on Pillar Two qualifying profits earned by companies domiciled in Switzerland (and not abroad). On 4 September 2024, the Swiss Federal Council decided to implement the Income Inclusion Rule (IIR) effective 1 January 2025. The IIR is supplementing the domestic supplementary tax (QDMTT) already in effect since 1 January 2024. Similarly, other countries (mainly EU member states, Australia, Japan, Malaysia, Singapore, South Korea, UK, Vietnam) in which Tecan operates have enacted or substantively enacted tax legislation related to Pillar Two with effect in financial year 2024 or later.

To mitigate the administrative burden for Multinational Enterprises in complying with the Pillar Two rules during the initial years of implementation (FY24 – FY26), the OECD developed the temporary "Transitional Country-by-Country (CbCR) Safe Harbor". Under the Transitional CbCR Safe Harbor, the top-up tax for a jurisdiction is deemed to be zero, provided that at least one of the defined tests is met for the selected jurisdiction.

Tecan has performed a preliminary calculation of the Transitional CbCR Safe Harbors for Pillar Two purposes. This preliminary calculation is based on the accounting data for financial year 2024. Based on this calculation, the Pillar Two effective tax rates in all of the jurisdictions in which Tecan operates are above 15% and/or are covered by other tests under the Transitional CbCR Safe Harbors rules. Consequently, Tecan does not estimate a significant impact derived from this new regulation and hence, has not recognized any current tax expense related to the top-up tax in the financial statements 2024.

2.2.4 Inventories–capitalized development costs

In 2010, the Group entered into an OEM agreement with a global diagnostics company. The agreement comprises the development and supply of a dedicated diagnostic instrument. The related customer-specific development costs were capitalized in the position inventories as part of the production costs. The delivery of the instruments, which takes place over a period of more than 10 years, started in October 2014. The customer requests the units with individual purchase orders. The Group recognizes the corresponding development costs in cost of sales upon fulfilment of the individual purchase orders. The remaining balance of capitalized development costs as of December 31, 2024 amounted to CHF 16.7 million.

On December 31, 2024, the net realizable value of the position was higher than the capitalized development costs. However, the assessment is highly dependent on the best estimate of the future sales quantity. A decrease in estimate could require write-downs in future periods.

2.2.5 Intangible assets–capitalized development costs

After the technical feasibility of in-house developed products has been demonstrated, the Group starts to capitalize the related development costs until the product is ready for market launch. However, there can be no guarantee that such products will complete the development phase or will be commercialized, or that market conditions will not change in the future, requiring a revision of management's assessment of future cash flows related to those products. Such changes could lead to additional amortization and impairment charges. At the end of 2024, the Group has capitalized development costs in the amount of CHF 37.5 million as disclosed in note 21.

2.2.6 Impairment test on goodwill

On December 31, 2024 total goodwill amounted to CHF 761.0 million. The Group performed the mandatory annual impairment tests at the end of June for Life Sciences Business and Partnering Business. Based on these tests, there was no need for the recognition of any impairment. However, the calculation of the recoverable amounts requires the use of estimates and assumptions. The key assumptions are disclosed in note 21.

2.2.7 Lease liabilities and right-of-use assets

The application of IFRS 16 'Leases' requires the Group to make judgments and estimates that affect the valuation of the lease liabilities (see note 22) and the valuation of right-of-use assets (see note 20). These include determining contracts in scope of IFRS 16, determining the contract term and determining the interest rate used for discounting of future cash flows. The lease term determined by the Group generally comprises non-cancellable period of lease contracts, periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option. The extent to which options have been included in the valuation is shown in Note 20.2.

2.3 INTRODUCTION OF NEW AND REVISED/ AMENDED STANDARDS AND INTERPRETATIONS

The accounting policies are consistent with those applied in the previous year, except for the introduction of the following amended standards, effective as from January 1, 2024:

Standard1

IAS 1 'Presentation of Financial Statements' amended – Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants

IFRS 16 'Leases' amended – Lease Liability in Sale and Leaseback

IAS 7 'Statement of Cash Flows' and IFRS 7 'Financial instruments – Disclosures' amended – Disclosures: Supplier Finance Arrangements

¹ IAS = International Accounting Standards, IFRS = IFRS Accounting Standards

The adoption of the amended standards did not result in material changes to the Group's accounting policies.

2.4 NEW AND REVISED/AMENDED STANDARDS AND INTERPRETATIONS NOT YET APPLIED

The following new and revised/amended standards and interpretations have been issued, but are not yet effective and are not applied early in these consolidated financial statements:

Standard1	Effective date for the Group
IAS 21 'The Effects of Changes in Foreign Exchange Rates' – Lack of exchangeability	Reporting year 2025
IFRS 9 amended 'Financial Instruments' and IFRS 7 amended 'Financial Instruments: Dis closures' – Classification and Measurement of Financial Instruments	Reporting year 2026
Annual Improvements to IFRS Accounting Standards – Volume 11	Reporting year 2026
IFRS 18 new 'Presentation and Disclosure in the Financial Statements', replacing IAS 1 'Presentation and Financial Statements'	Reporting year 2027
IFRS 10 amended 'Consolidated Financial Statements' and IAS 28 amended 'Invest ments in Associates and Joint Ventures' – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture	To be defined

¹ IAS = International Accounting Standards, IFRS = IFRS Accounting Standards

The Group intends to adopt these standards, if applicable, when they become effective. The new standard IFRS 18 will change the presentation of the statement of profit or loss and statement of cash flows. Additional disclosures will be required in the notes. A detailed analysis has not yet been performed.

2.5 MATERIAL CONSOLIDATION PRINCIPLES

2.5.1 Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has the right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

On the loss of control, the Group de-recognizes the assets and liabilities of the subsidiary, any non-controlling interests and other components of equity related to the subsidiary. Any resulting gain or loss is recognized in profit or loss.

When control is transferred in the event of a business combination, the Group is applying the acquisition method at the acquisition date.

2.5.2 Transactions eliminated upon consolidation

Intra-Group balances and transactions, and any unrealized profits arising from intra-Group transactions, are eliminated in preparing the consolidated financial statements.

2.6 FOREIGN CURRENCY TRANSLATION

Generally, all Group companies have identified their local currency as their functional currency. Transactions in other currencies are initially reported using the exchange rate at the date of the transaction. Gains and losses from the settlement of such transactions, as well as gains and losses on translation of monetary assets and liabilities denominated in other currencies, are included in profit or loss.

Translation differences arising on intra-Group loans that, in substance, are part of the net investment in a foreign operation, are recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the foreign operation.

Upon consolidation, assets and liabilities of Group companies using functional currencies other than Swiss francs (foreign entities) are translated into Swiss francs (presentation currency) using year-end exchange rates. Revenues, expenses and cash flows are translated at the average exchange rates for the year. Translation differences due to the changes in exchange rates between the beginning and the end of the year and the difference between net profits translated at the average and year-end exchange rates are recognized in other comprehensive income. On the disposal of a foreign operation, the identified cumulative currency translation differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, are reclassified from equity to profit or loss (as a reclassification adjustment) when the gain or loss on disposal is recognized.

2.7 MATERIAL ACCOUNTING AND VALUATION PRINCIPLES

2.7.1 Segment reporting

Chief operating decision maker – Segment information is presented in the same manner as in the internal reporting to the chief operating decision maker. The chief operating decision maker, responsible for strategic decisions, for the assessment of the segments' performance and for the allocation of resources to the segments, is the Board of Directors of Tecan Group Ltd.

Reportable segments – The following reportable segments were identified:

Life Sciences Business (end-customer business): The business segment 'Life Sciences Business' supplies end users with automated workflow solutions directly. These solutions include laboratory instruments, software packages, application knowhow, services, consumables and spare parts.
Partnering Business (OEM business): The business segment 'Partnering Business' develops and manufactures OEM instruments and components that are distributed by partner companies under their own names.

Operating segments / segment assets and liabilities – The operating segments are equivalent to the reportable segments. No operating segments have been aggregated. Segment assets, purchases of property, plant and equipment and intangible assets as well as segment liabilities are not reported to the chief operating decision maker.

2.7.2 Revenue recognition, contract assets and liabilities

Sale of standard instruments and other goods such as spare parts, trade products, consumables or reagents – The sale of standard instruments and other goods is generally considered as one performance obligation. The Group recognizes revenue at the point in time, when control of the asset is transferred to the customer, generally upon delivery.

Sale of complex instruments – The sale of complex instruments generally follows the same principles as the sale of standard instruments. However, as the sale of a complex instrument requires significant installation and application work at the customer's site, control of the asset is only transferred and accordingly revenue recognized upon the written acceptance by the customer. For sales orders with multiple instruments and high integrations costs, the Group determines the number of performance obligations individually and assesses whether the performance obligation(s) is/are satisfied over time. For revenue to be recognized over time, the following criteria must be fulfilled cumulatively: The Group's performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.

Contract manufacturing ('Partnering Business') – Manufacturing services comprise the material management and the manufactory/assembly of instruments based on the customer's design input. Normally these performance obligations fulfill the criteria for revenue recognition over time. For revenue to be recognized over time, the following criteria must be fulfilled cumulatively: The Group's performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.

Engineering services without delivery of instruments ('Partnering Business') – Engineering services are generally considered as one performance obligation. Revenue is recognized upon finalization of the project (at a point in time). For larger engineering orders that follow a standard milestone process, the Group assesses whether the performance obligation is satisfied over time. For revenue to be recognized over time, the following criteria must be fulfilled cumulatively: The Group's performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.

Sale of customized instruments ('Partnering Business') – The sale of customized instruments comprises the development and supply of instruments with a customer-specific design. The development (adaption of existing Tecan-technology to the customer's specifications) and supply of the instruments is generally considered as one performance obligation due to the limited usability of and control over the pure development result for the customer. Therefore, the related customer-specific development costs are capitalized in the position inventories as part of the production costs. Once the development is completed, the customer requests the units with individual purchase orders. The Group recognizes the corresponding development costs in cost of sales upon fulfilment of the individual purchase orders.

Performance obligations satisfied over time – method of revenue recognition and presentation (sale of complex instruments, contract manufacturing and engineering services) – The progress is generally measured by using a cost-to-cost approach: costs incurred for the work performed to date in proportion to the estimated total project costs. According to the progress, pro rata sales are recognized in the statement of profit or loss. In the balance sheet, projects in progress – netted against customers' advances – are recognized as net assets (included in the position 'contract assets') or net liabilities (included in the position 'contract liabilities'). When it is probable that the total costs will exceed contract revenue, the rules of IAS 37 – 'Onerous Contracts' are applied.

Service contracts – Revenue from service contracts is recognized over time based on the time elapsed.

Warranty obligations – The Group provides standard warranties for the repair of defects that existed at the time of sale, as required by law. These warranties qualify as assurance-type warranties under IFRS 15, which the Group accounts for under IAS 37 'Provisions'. In addition, the Group offers warranty extensions to its customers. Such warranty extensions are accounted for as service-type warranties according to IFRS 15, representing separate performance obligations to which the Group allocates a portion of the consideration based on the relative stand-alone selling price. For these service-type warranties, revenue is recognized over time based on the time elapsed.

Bundles of goods and services – Typically, instruments are sold together with other goods and services. The sale of other goods such as spare parts or consumables and services such as additional training or application work that are part of the same contract with a customer (bundles of goods and services), but qualify for the identification of separate performance obligations, are recognized separately from the sale of the instrument as revenues. The consideration (including any discounts) is allocated in proportion to the relative standalone selling prices of the identified performance obligations.

2.7.3 Employee benefits – retirement and long-service leave benefit plans

Defined benefit plans–The Group has both defined contribution and defined benefit retirement plans. Defined contribution plans are retirement benefit plans under which the Group pays fixed contributions into a separate fund and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. All other retirement benefit plans are defined benefit plans.

Liability for post-employment benefits – The liability recognized in the balance sheet regarding defined benefit retirement benefit plans is the present value of the defined

benefit obligation at the end of the reporting period less the fair value of plan assets for funded plans. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method, considering possible risk sharing arrangements.

Asset for post-employment benefits – When the calculation results in a benefit to the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan.

Defined benefit costs – The components of defined benefit costs are as follows:

Service costs, which are recognized in the statement of profit or loss within operating result
Interest expense or income on net liability or asset, which is recognized in the statement of profit or loss within financial result
Remeasurements, which are recognized in other comprehensive income

Service costs – Service costs include current service costs, past service costs and gains or losses on plan curtailments and settlements. When the benefits of a plan are changed, or when a plan is curtailed or settled, the portion of the changed benefits related to employee service in prior periods (past service costs), or the gains or losses on curtailments and settlements, are recognized immediately in profit or loss when the plan amendments or curtailments and settlements occur.

Interest expense or income – Interest expense or income is calculated by applying the discount rate to the net defined benefit liability or asset, considering any changes in the net defined benefit liability or asset during the period as a result of contribution and benefit payments.

Remeasurements – Remeasurements arising from defined benefit plans comprise actuarial gains and losses, the return on plan assets (excluding interest income) and the effect of the asset ceiling (if applicable). Remeasurements are recognized in other comprehensive income and cannot be reclassified to profit or loss.

Long-service leave benefits – The method of accounting for liabilities concerning long-service leave benefits is similar to that for defined benefit retirement plans.

Defined contribution plans – Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

2.7.4 Employee benefits – share-based payment

Amount recognized as an expense – The Group has introduced several equity-settled share-based compensation plans, for which the fair value of shares or share options granted is recognized within operating result and a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the shares or share options (vesting period). The amount recognized as an expense is adjusted by an expected forfeiture rate to reflect the expected number of shares or share options that will vest.

Fair value at grant – The fair value of the shares granted represents the market value of one Tecan share adjusted for expected dividend payments during the vesting period. The fair value of the share options granted is measured using a trinomial model, considering the terms and conditions upon which the share options were granted.

2.7.5 Income taxes

Current and deferred income taxes – Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognized in the statement of profit or loss except to the extent that it relates to items recognized in other comprehensive income or directly in equity (transactions with owners), in which case it is recognized in other comprehensive income or equity.

Deferred taxes on temporary differences – Deferred taxes are provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill that is not deductible for tax purposes, the initial recognition of assets or liabilities that affects neither accounting profit nor taxable profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the balance sheet date.

Pillar Two model rules (international tax reform introduced by the OECD) – The Group applies the mandatory temporary exception to the accounting for deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules.

Realization of tax benefits–Deferred tax assets resulting from temporary differences and tax loss carry-forwards are recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred taxes provided on expected dividends from subsidiaries – In addition, deferred taxes are provided on expected future dividend distributions from subsidiary companies (non-recoverable withholding taxes).

2.7.6 Financial instruments

2.7.6.1 Cash and cash equivalents, time deposits and receivables

Measurement category: Financial assets at amortized cost without significant financing component

These financial assets are initially measured at the transaction price (nominal value). Subsequently the transaction price is reduced by impairment losses (see below). Foreign exchange gains/losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

Accounting for impairment losses on receivables: The Group recognizes an allowance for impairment that represents its estimate of lifetime expected credit losses, applying the simplified approach according to IFRS 9. The Group has established a provision matrix that is based on the Group's historical credit loss experience, adjusted for forward-looking factors specific to the economic environment.

Cash and cash equivalents comprise cash balances and time deposits with a term of three months or less from the date of acquisition. Bank overdrafts that are repayable on demand and form an integral part of the Group's cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

2.7.6.2 Rent and other deposits

Measurement category: Financial assets at amortized cost with significant financing component

These financial assets are initially measured at fair value plus transaction costs that are directly attributable to their acquisition. Subsequently the financial instrument is measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains/losses and impairment are recognized in profit or loss. Any gain or loss on de-recognition is recognized in profit or loss.

2.7.6.3 Derivatives, convertible bonds and contingent considerations

Measurement category: Financial assets and liabilities at fair value through profit or loss (FVTPL)

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These financial assets and liabilities are initially measured at fair value without any transaction costs, the latter being directly expensed. Subsequently these financial instruments continue to be measured at fair value. Net gains and losses are recognized in profit or loss.

The Group uses derivative financial instruments to economically hedge certain exposures to foreign exchange rate risks.

2.7.6.4 Unquoted equity investment

Measurement category: Financial assets at fair value through profit or loss (FVTPL) or other comprehensive income (FVOCI)

This category only includes equity instruments which the Group intends to hold for the foreseeable future. The classification is determined upon initial recognition on an investment-by-investment basis and is irrevocable.

The financial asset is initially measured at fair value plus transaction costs that are directly attributable to its acquisition. Subsequently the financial instrument continues to be measured at fair value. Net gains and losses are recognized in other comprehensive income and are not recycled to profit or loss on de-recognition. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.

2.7.6.5 Current bank liabilities, payables and accrued expenses

Measurement category: Financial liabilities at amortized cost without significant financing component

These financial liabilities are initially measured at the transaction price (nominal value). Subsequently these financial instruments continue to be measured at the transaction price. Foreign exchange gains/losses are recognized in profit or loss. Any gain or loss on de-recognition is recognized in profit or loss.

2.7.6.6 Bank loans and bonds

Measurement category: Financial liabilities at amortized cost with significant financing component

These financial liabilities are initially measured at fair value plus transaction costs that are directly attributable to their acquisition. Subsequently these financial instruments are measured at amortized cost using the effective interest method. Interest expenses and foreign exchange gains/ losses are recognized in profit or loss. Any gain or loss on de-recognition is recognized in profit or loss.

2.7.7 Inventories

Inventories are stated at the lower of purchase or production cost and net realizable value. Production costs include raw materials, components and semi-finished products, direct production costs (internal labor and external services) and production overheads. The Group applies the weighted average cost method except for contract manufacturing for which the FIFO cost formula is more appropriate. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Provisions are made for slow-moving items and obsolete items are written off.

2.7.8 Property, plant and equipment

Valuation – Property, plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses (see separate accounting policy). The cost of self-constructed assets includes the cost of materials, direct labor and an appropriate proportion of production overheads and borrowing costs, if they are directly attributable to a qualifying asset.

Depreciation – Depreciation is charged to the statement of profit or loss on a straight-line basis over the estimated useful lives of items of property, plant and equipment from the date they are available for use. The estimated useful lives are as follows:

Buildings	50 years
Leasehold improvements	shorter of useful life or lease term
Furniture and fittings	4 – 8 years
Machines and motor vehicles	2 – 8 years
Tools in connection with OEM contracts	units of production method
EDP equipment	3 – 5 years

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

Component approach – Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment (component approach).

Repair and maintenance – Costs for repair and maintenance are recognized as an expense as incurred.

2.7.9 Right-of-use assets and related lease liabilities

Commencement date, lease term and options – The Group recognizes a right-of-use asset and a lease liability at the date the underlying asset is available for use (lease commencement date). The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. For this purpose, the non-cancellable lease term is compared with an internal benchmark lease term. An optional term that begins after the benchmark lease term is generally not considered. For option events that take place earlier, management assesses the circumstances on a case-by-case basis.

Right-of-use assets – Right-of-use assets are initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liability. The cost of right-of-use assets include the amount of lease liabilities recognized, any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs incurred, and restoration costs. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term.

Lease liabilities / initial measurement – At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of the lease payments (excluding any non-lease components) to be made over the lease term. The lease payments include fixed payments less any incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs.

Lease liabilities / subsequent measurement – After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured when there is a change in future lease payments arising from a change in index or rate, a change in the estimated of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or renewal option is reasonable certain to be exercised or a termination option is reasonably certain not to be exercised.

Discount rate – In calculating the present value of the lease liability the Group is using the interest rate implicit in the lease or, if that rate cannot be determined, the Group's incremental borrowing rate.

Short-term leases and leases of low-value assets – The Group applies the short-term lease recognition exemption to its short-term leases of property. These leases have a lease

term of 12 months or less from the commencement date and do not contain a purchase option. It also applies the lease of low-value assets recognition exemption to leases of service equipment that are low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.

2.7.10 Intangible assets

Research costs – Expenditure on research activities, undertaken with the objective of gaining new scientific or technical knowledge and understanding, is recognized as an expense when it is incurred.

Development costs – Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditure is capitalized only if the development costs can be measured reliably, the product is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Expenditure capitalized includes the costs of materials, external services, personnel, temporary employees, overheads and borrowing costs, if they are directly attributable to a qualifying asset. Other development costs are expensed as incurred.

Software – The method of accounting for software projects is similar to that for development costs. Cloud computing arrangements are expensed as incurred to the extent the control criteria are not met.

Intangible assets acquired in a business combination – All identifiable intangible assets that are recognized applying the acquisition method are stated initially at fair value. The following valuation methods are used to determine the fair values at the acquisition date: multi-period excess earnings method, relief from royalty method and replacement cost approach.

Valuation and amortization – Following the initial recognition, intangible assets are measured at cost less accumulated amortization (see below) and impairment losses (see separate accounting policy). Amortization is charged to the statement of profit or loss on a straightline basis over the estimated useful lives of intangible assets. Intangible assets are amortized from the date they are available for use. The estimated useful lives are as follows:

Software	3 – 5 years
Development costs	3 – 5 years
Patents	3 – 5 years
Acquired brand	2 – 13 years
Acquired client relationships	7 – 23 years
Acquired technology	6 – 16 years

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

2.7.11 Goodwill

Goodwill – Goodwill represents the future economic benefits arising from a business combination that are not capable of being individually identified and separately recognized as assets or liabilities.

Initial measurement – For acquisitions, the Group measures goodwill at the acquisition date as

the fair value of the consideration transferred, plus
the recognized amount of any non-controlling interests in the acquiree, plus
if the business combination is achieved in stages, the fair value of existing equity interest in the acquiree, less
the net recognized amount of the identifiable net assets acquired.

When the excess is negative, a bargain purchase gain is recognized immediately in profit or loss.

Subsequent measurement – After initial recognition, the Group measures goodwill at cost less any accumulated impairment losses. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the goodwill might be impaired.

2.7.12 Impairment

Recognition of an impairment loss – The carrying amount of the Group's non-financial assets other than inventories, contract assets and deferred tax assets, is reviewed at each balance sheet date to determine whether there is any indication of impairment. If such indication exists, the asset's recoverable amount, being the higher of its fair value less costs of disposal and its value in use, is estimated. Goodwill, intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually. An impairment loss is recognized in the statement of profit or loss whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.

Reversal of an impairment loss – Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reviewed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. An impairment loss in respect of goodwill is not reversed.

2.7.13 Government grants

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as other operating income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is initially recognized in deferred income and subsequently released as other operating income in equal amounts over the expected useful life of the related asset. The Group receives government grants for research activities and in connection with COVID-19 related government support programs, mainly in the form of temporary payments to social security funds on behalf of the Group and subsidies for production lines to increase the supply of critical consumables.

2.7.14 Provisions

Recognition of a provision – Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows.

Provision for warranties and returns – A provision for warranties is recognized when the underlying products or services are sold. The provision is based on historical data.

3 SCOPE OF CONSOLIDATION

3.1 DISCLOSURE OF INTERESTS IN OTHER ENTITIES

The scope of the consolidation does not include an interest in any of the following:

Subsidiaries with non-controlling interests
Associates
Joint arrangements

The following subsidiaries are included in the consolidated financial statements:

Company	Registered office	Participation in % (capital and votes)	Currency	Share capital (LC 1,000)	Activities
Tecan Schweiz AG	Männedorf/Zurich (CH)	100%	CHF	5,000	R/P/D
Tecan Trading AG	Männedorf/Zurich (CH)	100%	CHF	300	S/D
Tecan Sales Switzerland AG	Männedorf/Zurich (CH)	100%	CHF	250	D
Tecan Austria GmbH	Grödig/Salzburg (AT)	100%	EUR	1,460	R/P
Tecan Sales Austria GmbH	Grödig/Salzburg (AT)	100%	EUR	35	D
Tecan Sales International GmbH	Grödig/Salzburg (AT)	100%	EUR	35	D
Tecan Landesholding GmbH	Crailsheim/Stuttgart (DE)	100%	EUR	25	S
• Tecan Deutschland GmbH	Crailsheim/Stuttgart (DE)	100%	EUR	51	D
• Tecan Software Competence Center GmbH	Mainz-Kastel (DE)	100%	EUR	103	R
• IBL International GmbH	Hamburg (DE)	100%	EUR	25	R/P/D
Tecan Benelux BV	Mechelen (BE)	100%	EUR	37	D
Tecan France S.A.S.	Lyon (FR)	100%	EUR	2,760	D
Tecan Iberica Instrumentacion S.L.	Barcelona (ES)	100%	EUR	30	S/D
Tecan Italia Srl.	Milano (IT)	100%	EUR	77	D
Tecan UK Ltd.	Reading (GB)	100%	GBP	500	D
Tecan Nordic AB	Stockholm (SE)	100%	SEK	100	D
Tecan U.S. Group, Inc.	Morrisville, NC (US)	100%	USD	1,500	S
• Tecan U.S., Inc.	Morrisville, NC (US)	100%	USD	400	D
• Tecan Systems, Inc.	Morgan Hill, CA (US)	100%	USD	26	R
• Tecan SP, Inc.	Baldwin Park/Los Angeles, CA (US)	100%	USD	472	R/P/D
• Tecan Genomics, Inc.	Morgan Hill, CA (US)	100%	USD	0	R/P/D
• DCPM, Inc.	Morgan Hill, CA (US)	100%	USD	58	P/D
• Paramit Corp.	Morgan Hill, CA (US)	100%	USD	0	P/D
– Emphysys, Inc.	Boston, MA (US)	100%	USD	0	R
– Paramit Malaysia Sdn. Bhd.	Penang (MY)	100%	USD	5,178	P/D
Tecan Asia (Pte.) Ltd.	Singapore (SG)	100%	SGD	800	S
Tecan (Shanghai) Laboratory Equipment Co., Ltd.	Shanghai (CN)	100%	CNY	3,417	D
PMAS Co., Ltd	Ben Cat Town, Binh Duong Province (VN)	100%	VND	10,367,000	P
Tecan Korea Ltd.	Seoul (KR)	100%	KRW	110,000	D
Tecan Japan Co., Ltd.	Kawasaki (JP)	100%	JPY	125,000	D
Tecan Australia Pty Ltd	Melbourne (AU)	100%	AUD	0	D

S = services, holding functions, R = research and development, P = production, D = distribution

3.2 CHANGE IN SCOPE OF CONSOLIDATION: ACQUISITION THROUGH BUSINESS COMBINATION

Based on an asset deal, the Group acquired certain assets from its long-standing distributor in South Korea. In addition, all former employees were transferred to the subsidiary Tecan Korea Ltd., which was established in December 2023 to strengthen and expand the Group's business activities in Korea.

The fair value of the identified assets and the cash outflow at the date of acquisition were:

	01.02.2024
CHF 1,000	Asset deal with former distributor
Inventories	870
Non-current financial assets	34
Property, plant and equipment	42
Customer relationships (intangible asset)	348
Total identifiable assets at fair value	1,294
Goodwill	-
Consideration transferred for the business combination	1,294
Contingent consideration	(425)
Net cash outflow	869

From the acquisition date, the asset deal contributed CHF 2.9 million of third party sales and CHF 0.2 million of operating profit to the Group's results. If the acquisition had occurred on January 1, 2024, management estimates that consolidated sales would have been CHF 934.5 million and consolidated operating profit would have been CHF 75.6 million in 2024. The Group incurred acquisition related costs of CHF 0.2 million for legal and due diligence fees. These costs are included in 'general and administration' expenses.

The contingent consideration was settled without any adjustments.

4 SEGMENT INFORMATION

4.1 INFORMATION BY BUSINESS SEGMENTS

	Life Sciences Business			Partnering Business		Corporate/ consolidation		Group
CHF 1,000	2023	2024	2023	2024	2023	2024	2023	2024
Sales third	451,796	397,009	622,590	537,269	–	–	1,074,386	934,278
Intersegment sales	9,612	6,445	1,065	1,022	(10,677)	(7,467)	–	–
Total sales	461,408	403,454	623,655	538,291	(10,677)	(7,467)	1,074,386	934,278
Cost of sales	(224,823)	(214,792)	(469,781)	(406,288)	10,684	7,400	(683,920)	(613,680)
Gross profit	236,585	188,662	153,874	132,003	7	(67)	390,466	320,598
Other net expenses	(152,163)	(149,207)	(89,482)	(85,372)	(12,854)	(10,446)	(254,499)	(245,025)
Operating profit	84,422	39,455	64,392	46,631	(12,847)	(10,513)	135,967	75,573
Depreciation and amortization	(22,371)	(27,625)	(48,423)	(39,180)	–	–	(70,794)	(66,805)
Impairment	(234)	(5,602)	(302)	–	–	–	(536)	(5,602)

	2023	2024
CHF 1,000
Reconciliation of reportable segment sales
Total sales for reportable segments	1,085,063	941,745
Elimination of intersegment sales	(10,677)	(7,467)
Total consolidated sales	1,074,386	934,278
Reconciliation of reportable segment profit
Total operating profit for reportable segments	148,814	86,086
Unallocated costs (business development, investor relations and other corporate costs)
and consolidation entries	(12,847)	(10,513)
Financial result	(2,162)	2,704
Total consolidated profit before taxes	133,805	78,277

4.2 ENTITY-WIDE DISCLOSURES

Non-current assets by regions (by location of assets)

		Property, plant and equipment		Right-of-use assets		Intangible assets
	31.12.2023	31.12.2024	31.12.2023	31.12.2024	31.12.2023	31.12.2024
CHF 1,000
Switzerland	18,715	17,466	9,253	16,078	105,919	108,403
Other Europe	4,890	4,774	8,829	9,386	3,430	2,935
USA	35,025	34,158	41,987	39,351	867,988	913,083
Asia	22,391	22,354	4,080	3,761	43,880	44,841

Total	81,021	78,752	64,149	68,576	1,021,217	1,069,262

Information about major customers

There are sales to one individual customer (CHF 163.8 million) relating to business segment 'Partnering Business' that in aggregate exceeded 10% of total sales in 2024 (2023: one individual customer [CHF 199.1 million] relating to business segment 'Partnering Business').

5 SALES – REVENUE FROM CONTRACTS WITH CUSTOMERS

5.1 DISAGGREGATION OF REVENUE AND RECONCILIATION TO SEGMENT INFORMATION

		Life Sciences Business			Partnering Business		Total 2023
CHF 1,000	Revenue contracts with customers	Leases	Sales segment Life Sciences Business	Revenue contracts with customers1	Leases	Sales segment Partnering Business	Revenue contracts with customers	Leases	Total sales
By regions (location of customer)
Europe	133,451	923	134,374	173,043	–	173,043	306,494	923	307,417
Americas	232,466	–	232,466	376,153	–	376,153	608,619	–	608,619
Asia	75,981	–	75,981	70,482	–	70,482	146,463	–	146,463
Others	8,975	–	8,975	2,912	–	2,912	11,887	–	11,887
Total	450,873	923	451,796	622,590	–	622,590	1,073,463	923	1,074,386
By products and services
Products	344,322	–	344,322	568,056	–	568,056	912,378	–	912,378
Services	106,551	–	106,551	54,534	–	54,534	161,085	–	161,085
Leases	–	923	923	–	–	–	–	923	923
Total	450,873	923	451,796	622,590	–	622,590	1,073,463	923	1,074,386
By timing of revenue recognition
Point in time	380,009	–	380,009	278,394	–	278,394	658,403	–	658,403
Over time	70,864	–	70,864	344,196	–	344,196	415,060	–	415,060
Leases	–	923	923	–	–	–	–	923	923
Total	450,873	923	451,796	622,590	–	622,590	1,073,463	923	1,074,386

¹ Sales by regions: reclassification between regions.

		Life Sciences Business			Partnering Business			Total 2024
CHF 1,000	Revenue contracts with customers	Leases	Sales segment Life Sciences Business	Revenue contracts with customers	Leases	Sales segment Partnering Business	Revenue contracts with customers	Leases	Total sales
By regions (location of customer)
Europe	123,995	931	124,926	149,516	–	149,516	273,511	931	274,442
Americas	204,124	–	204,124	326,686	–	326,686	530,810	–	530,810
Asia	59,713	–	59,713	59,151	–	59,151	118,864	–	118,864
Others	8,246	–	8,246	1,916	–	1,916	10,162	–	10,162
Total	396,078	931	397,009	537,269	–	537,269	933,347	931	934,278
By products and services
Products	291,374	–	291,374	488,353	–	488,353	779,727	–	779,727
Services	104,704	–	104,704	48,916	–	48,916	153,620	–	153,620
Leases	–	931	931	–	–	–	–	931	923
Total	396,078	931	397,009	537,269	–	537,269	933,347	931	934,278
By timing of revenue recognition
Point in time	321,208	–	321,208	239,404	–	239,404	560,612	–	560,612
Over time	74,870	–	74,870	297,865	–	297,865	372,735	–	372,735
Leases	–	931	931	–	–	–	–	931	931
Total	396,078	931	397,009	537,269	–	537,269	933,347	931	934,278

5.2 CONTRACT BALANCES

	Notes	31.12.2023	31.12.2024
CHF 1,000
Trade accounts receivable	16	158,677	148,561
Contract assets		35,490	35,352
Current contract liabilities	23	(82,475)	(79,724)
Non-current contract liabilities	23	(8,482)	(9,104)

Trade accounts receivable are non-interest bearing and are generally on terms of 30 to 90 days. In 2024, CHF 2.1 million (2023: CHF 2.4 million) was recognized as allowance for expected credit losses.

Contract assets are initially recognized for revenue earned for the installation of complex instruments, contract manufacturing as well as engineering services without delivery of instruments, if the contracts fulfil the criteria for revenue recognition over time. The amounts recognized as contract assets are reclassified to trade accounts receivable to the extent they can be billed to the customer. There are no allowances for expected credit losses in 2023 and 2024.

Set out below is the amount of revenue recognized from

	2023	2024
CHF 1,000
Amounts included in contract liabilities at the beginning of the year	97,998	76,207
Performance obligations satisfied in previous years	–	–

5.3 PERFORMANCE OBLIGATIONS

The transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as of December 31 are as follows:

		31.12.2023			31.12.2024
CHF 1,000	Contract liabilities	Performance obligations not yet billed	Total remaining performance obligations	Contract liabilities	Performance obligations not yet billed	Total remaining performance obligations
Expected to be recognized
Within one year	82,475	275,946	358,421	79,724	235,319	315,043
More than one year	8,482	37,391	45,873	9,104	40,472	49,576
Total transaction price allocated	90,957	313,337	404,294	88,828	275,791	364,619

6 SALES – INCOME FROM OPERATING LEASE ARRANGEMENTS (GROUP AS LESSOR)

The operating leases relate to arrangements in which the Group provides instruments free of charge in return for a minimum commitment of the customer for consumables or reagents. The Group did not enter any finance lease contracts. The total consideration of such combined contracts is allocated to the lease component and the sale of the consumables and reagents in proportion to the estimated stand-alone values of the lease and the minimum commitment for consumables and reagents.

The future minimum lease receivables under non-cancellable operating leases are:

	31.12.2023	31.12.2024
CHF 1,000
Due date
Within one year	978	903
In 1 to 3 years	1,327	1,144
In 3 to 5 years	575	533
After 5 years	148	155

Total future minimum lease receivables	3,028	2,735

In financial year 2024, CHF 0.9 million (2023: CHF 0.9 million) were recognized as sales from leases in the consolidated statement of profit or loss.

7 RESEARCH AND DEVELOPMENT

	Notes	2023	2024
CHF 1,000
Gross research and development costs incurred1		89,649	80,950
Reclassification of development costs related to engineering services to cost of sales		(18,391)	(16,018)
Capitalization of development costs in position inventories		(5,841)	(5,815)
Capitalization of development costs in position intangible assets	21	(12,327)	(13,000)
Amortization of development costs and acquired technology		16,650	22,270
Total research and development (gross), according to statement of profit or loss		69,740	68,387
Government research subsidies, recognized in other operating income		(735)	(1,026)

Total research and development (net)		69,005	67,361

¹ The amount includes the cost of materials, external services, personnel, temporary employees and overhead.

Costs for research and the development of new products (gross) amounted to 7.3% of sales (2023: 6.5%).

8 OPERATING EXPENSES BY NATURE

	Notes	2023	2024
CHF 1,000
Material costs		451,674	407,509
Personnel expenses	9.2	332,233	303,476
Depreciation of property, plant and equipment		24,949	20,176
Impairment loss on property, plant and equipment		536	–
Depreciation of right-of-use assets		14,186	13,517
Amortization of intangible assets		31,659	33,112
Impairment loss on intangible assets		–	5,602
Other operating costs		108,273	100,821
Total operating costs incurred (gross)		963,510	884,213
Capitalization of development costs in position inventories		(5,841)	(5,815)
Capitalization of development costs in position intangible assets	21	(12,327)	(13,000)
Other operating income		(6,923)	(6,693)
Total operating expenses, according to statement of profit or loss		938,419	858,705

9 EMPLOYEE BENEFITS

9.1 NUMBER OF EMPLOYEES

	2023	2024
FTE (full-time equivalent)
Employees – year-end	3,591	3,265
Employees – average	3,570	3,413

9.2 PERSONNEL EXPENSES

Personnel expenses include the following:

	Notes	2023	2024
CHF 1,000
Salaries and wages		264,468	238,939
Social security		31,434	27,471
Post-employment benefits relating to
Defined contribution plans		4,590	4,717
Defined benefit plans	9.3	3,811	11,741
Share-based payment	9.4	14,819	4,087
Other personnel expenses		13,111	16,521

Total personnel expenses		332,233	303,476

9.3 POST-EMPLOYMENT BENEFITS: DEFINED BENEFIT PLANS

9.3.1 Characteristics of defined benefit plans and risks associated with them

	Swiss plans	31.12.2023 International plans	Total	Swiss plans	31.12.2024 International plans	Total
Number of plans	5	3	8	5	3	8
Actives
Number	732	107	839	707	106	813
Defined benefit obligation (CHF 1,000)	198,065	3,896	201,961	208,601	3,987	212,588
Weighted average duration in years	16.8	6.0	16.8	17.5	5.4	17.3
Retirees
Number	7	–	7	9	–	9
Defined benefit obligation (CHF 1,000)	4,670	–	4,670	5,069	–	5,069
Weighted average duration in years	14.2	–	14.2	13.8	–	13.8
Total
Number	739	107	846	716	106	822

Within the Group, various defined benefit plans exist, which differ in their purpose and financing according to local needs:

Country	Benefits	Funded/ Unfunded	Description and risks
Switzerland (Swiss plans)	Retirement, death-in-service and disability benefits	Funded	Nature of the benefits provided The pension plans of Tecan Group Ltd., Tecan Schweiz AG, Tecan Sales Switzerland AG and Tecan Trading AG are plans with guaranteed minimum interest credited on the savings and fixed conversion rates at retirement. Disability and death benefits are defined as a percent age of the insured salary.

Regulatory framework (minimum)

The plan provides benefits based on the LPP/BVG law, which defines the minimum requirements for the mandatory employer-sponsored pension plans in Switzerland. An annual salary of up to CHF 90,720 (as from January 1, 2024) is required to be insured and funding is age-related, with contribution rates ranging from 7% to 18% as a percentage from insured salary. The conversion rate used to calculate the annuity based on the accumulated savings capital is 6.8% at normal retirement age (65 for men and women).

According to the LPP/BVG law, the plan must be fully funded on a static basis at all times. In the event of underfunding, corrective measures must be taken, such as additional funding by the employer or by the employer and employees, or a reduction in benefits, or a combination of both.

Specific plan rules

The retirement savings credits are defined as a percentage of the insured salary. The savings credits for the portion of the annual salary between CHF 26,460 and CHF 90,720 depend on age and range from 8% to 19%. The savings credits for the portion of the annual salary above CHF 90,720 are 14% for the employees and 18%, 19% and 21.8% for the members of the management. The conversion rate used to calculate the annuity based on the total accumulated savings capital is 5.2% at normal retirement age.

The annual disability pension is 70% of the insured salary, the annual partner's pension is 50% of the insured salary or 60% of the current retirement pension. In the event of death before retirement, an additional lump sum of 200% of the insured salary is paid.

Country	Benefits	Funded/ Unfunded	Description and risks
Switzerland (Swiss plans)	Retirement, death-in-service and disability benefits	Funded	Governance of the plan The companies are affiliated to the collective foundation AXA Collective BVG Foundation. The collective foundation is a separate legal entity. The foundation is responsible for the gov ernance of the plan and its board of trustees is composed of an equal number of employer and employee representatives elected by each of the affiliated companies. The foundation has established investment guidelines, particularly the strategic allocation with ranges.
			In addition, each affiliated company has a pension committee, which is composed of an equal number of representatives of the company and the employees. The pension committee is responsible for setting the benefits of the plan.
			Risks to which the plan exposes the Group The plan provider, AXA Collective BVG Foundation, has reinsured the risks of disability, death and longevity with AXA insurance. The Group is therefore only exposed to the investment risk and the risk that the AXA Collective BVG Foundation may terminate the affiliation con tract or increase the premiums.
			Plan amendments, settlements or curtailments In 2023 the board of trustees has decided to reduce the conversion rates used to calculate the annuity based on the total accumulated savings capital as from January 1, 2025. This modification is considered a plan amendment. The resulting past service cost of CHF 4.4 million (gain) was immediately recognized in profit or loss.
Austria (International plans)	Long-service leave benefits	Unfunded	Nature of the benefits provided The severance plan of Tecan Austria GmbH and Tecan Sales Austria GmbH guarantees a one time lump-sum payment upon termination of employment. The plan was closed to new mem bers on December 31, 2002. Participants in the plan are all employees with at least 3 years of service and entry date prior to January 1, 2003. Membership in the plan is mandatory.
			Regulatory framework The plan provides benefits in accordance with Austrian law (AngG 23 and 23a) which pro vides benefits in the event of retirement, death (50%), disability or termination of employ ment. Benefits are vested after 3 years of service, while voluntary termination of employment results in the forfeiture of all benefits.
			Benefits are based on years of service and range from a lump sum of two months' salary after three years of service to 12 months' salary after 25 years of service. Monthly salary is defined as one twelfth of the total annual salary for the previous 12 months.
			Governance of the plan The company (employer) is solely responsible for the governance of the plan.
			Risks to which the plan exposes the Group The plan is exposed to inflation risk and salary increase risk. There is no longevity risk as benefits are payable at retirement at the latest.
			Plan amendments, settlements or curtailments There were no plan amendments, settlements or curtailments during the financial years 2023 and 2024.
Other (International plans)	Retirement benefits	Unfunded	Tecan Japan Co., Ltd. and Tecan Italia Srl. have two smaller pension plans with a limited number of participants.

9.3.2 Amounts recognized in the financial statements

The amounts recognized in the balance sheet are as follows:

Total liability for post-employment benefits	43,983	28,367
Deficit International plans	3,896	3,987

Present value of obligations arising from long-service leave benefit plans (unfunded)	2,954	3,018
Present value of obligations arising from retirement benefit plans (unfunded)	942	969
International plans
Deficit Swiss plans	40,087	24,380
Related fair value of plan assets	(162,648)	(189,290)
Present value of obligations arising from retirement benefit plans (funded)	202,735	213,670
Swiss plans
CHF 1,000
	31.12.2023	31.12.2024

The components of defined benefit cost are as follows:

		2023			2024
	Swiss	International	Total	Swiss	International	Total
CHF 1,000	plans	plans		plans	plans
Current service cost	7,927	242	8,169	11,519	222	11,741
Past service cost (plan amendment)	(4,358)	–	(4,358)	–	–	–

Defined benefit cost included in operating profit	3,569	242	3,811	11,519	222	11,741

Net interest cost on liability for post-employment benefits	237	121	358	473	129	602
Defined benefit cost included in finance cost	237	121	358	473	129	602
Total defined benefit cost included in profit or loss	3,806	363	4,169	11,992	351	12,343
Actuarial (gains)/losses on obligations
Changes in demographic assumptions	–	(72)	(72)	–	(11)	(11)
Changes in financial assumptions	27,435	(55)	27,380	10,390	44	10,434
Experience adjustments	(4,727)	115	(4,612)	(12,957)	(56)	(13,013)
Return on plan assets (excluding interest income)	5,746	–	5,746	(16,787)	–	(16,787)
Remeasurement (gains)/losses included in other
comprehensive income	28,454	(12)		28,442 (19,354)	(23)	(19,377)
Translation differences included in other comprehensive income	–	(309)	(309)	–	24	24

Total defined benefit cost recognized	32,260	42	32,302	(7,362)	352	(7,010)

The Group expects to contribute CHF 9.8 million to its defined benefit plans in 2025.

Changes in the present value of the defined benefit obligation are as follows:

		2023			2024
	Swiss plans	International plans	Total	Swiss plans	International plans	Total
CHF 1,000
Balance at January 1	182,715	3,965	186,680	202,735	3,896	206,631
Current service cost	7,927	242	8,169	11,519	222	11,741
Past service cost	(4,358)	–	(4,358)	–	–	–
Employee contributions	6,065	–	6,065	6,160	–	6,160
Insurance premiums	(1,988)	–	(1,988)	(2,176)	–	(2,176)
Benefits paid	(14,609)	(111)	(14,720)	(4,766)	(261)	(5,027)
Interest expense	4,275	121	4,396	2,765	129	2,894
Actuarial (gains)/losses	22,708	(12)	22,696	(2,567)	(23)	(2,590)
Translation differences	–	(309)	(309)	–	24	24
Balance at December 31	202,735	3,896	206,631	213,670	3,987	217,657

Changes in the fair value of plan assets are as follows:

CHF 1,000	Swiss plans	2023 International plans	Total	Swiss plans	2024 International plans	Total
Balance at January 1	166,757	–	166,757	162,648	–	162,648
Employer contributions	8,131	–	8,131	8,343	–	8,343
Employee contributions	6,065	–	6,065	6,160	–	6,160
Insurance premiums	(1,988)	–	(1,988)	(2,176)	–	(2,176)
Benefits paid	(14,609)		– (14,609)	(4,766)	–	(4,766)
Interest income	4,038	–	4,038	2,294	–	2,294
Return on plan assets (excluding interest income)	(5,746)	–	(5,746)	16,787	–	16,787
Balance at December 31	162,648	–	162,648	189,290	–	189,290

The plan assets consist of:

		31.12.2023		31.12.2024
CHF 1,000
Cash	quoted	1,627	1%	1,893	1%
Equity securities	quoted	55,300	34%	64,358	34%
Debt securities	quoted	52,047	32%	68,144	36%
Real estate	quoted	42,289	26%	49,215	26%
Other	not quoted	11,385	7%	5,680	3%
Balance at December 31		162,648	100%	189,290	100%

9.3.3 Actuarial assumptions and sensitivity analysis

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

	31.12.2023		31.12.2024
	Swiss plans	International plans	Swiss plans	International plans
Discount rates	1.40%	3.56%	1.00%	2.88%
Rate of future salary increases	1.75%	3.56%	1.75%	3.14%
Rate of future pension increases	0.00%	0.00%	0.00%	0.00%
Rates for the projection of savings capital1	1.00%	n/a	1.25%	n/a
Mortality tables2	BVG2020G	various	BVG2020G	various

¹ Swiss plans: the rate is only applied to the mandatory part.

² Model 'Continuous Mortality Investigation (CMI)'.

Sensitivities of significant actuarial assumptions

The discount rate, the rate of future salary increase and the life expectancy were identified as significant actuarial assumptions. The following impacts on the defined benefit obligation are to be expected:

			31.12.2023			31.12.2024
	Change in actuarial assumptions	Swiss plans	International plans	Total	Swiss plans	International plans	Total
CHF 1,000
Discount rates	- 25 basis points	5,464	54	5,518	6,582	51	6,633
	+ 25 basis points	(5,174)	(53)	(5,227)	(6,224)	(45)	(6,269)
Rate of future salary increases	- 25 basis points	(1,627)	(50)	(1,677)	(1,919)	(42)	(1,961)
	+ 25 basis points	1,642	49	1,691	1,932	46	1,978
Life expectancy	- 1 year	(2,678)	(6)	(2,684)	(3,503)	(2)	(3,505)
	+ 1 year	2,776	3	2,779	3,633	4	3,637

(positive = increase in obligation / negative = decrease in obligation)

The sensitivity analysis is based on realistically possible changes at the end of the reporting period. Each change in significant assumption was analyzed separately as part of the test. Interdependencies were not considered.

9.4 SHARE-BASED PAYMENT: EMPLOYEE PARTICIPATION PLANS

9.4.1 Employee share option plans

The terms and conditions of the outstanding grants are as follows:

Plan		Plan terms			31.12.2023		31.12.2024
	Grant date	Expiry date	Number granted	Exercise price	Remaining contractual life (years)	Number outstanding	Remaining contractual life (years)	Number outstanding
Plan 2018	02.11.2017	02.11.2024	22,071	212.1	0.8	3,753	–	–
Plan 2019	02.11.2018	02.11.2025	23,921	228.7	1.8	8,953	0.8	8,196
Plan 2020	02.11.2019	02.11.2026	23,334	236.0	2.8	8,871	1.8	6,879
Plan 2021	02.11.2020	02.11.2027	9,056	434.2	3.8	6,658	2.8	6,071
Plan 2022	02.11.2021	02.11.2028	7,050	571.5	4.8	5,946	3.8	5,511
Plan 2023	02.11.2022	02.11.2029	10,735	356.6	5.8	10,565	4.8	9,724
Plan 2024	02.11.2023	02.11.2030	14,313	265.8	6.8	14,313	5.8	13,737
Plan 2025	02.11.2024	02.11.2031	19,103	220.2	–	–	6.8	19,103
Total					4.3	59,059	4.5	69,221
Thereof exercisable at December 31						35,585		37,353

All plans are granted to members of the management level 3 and 4 and have a contractual life of 7 years. The vesting conditions are one / two / three years of service for 33%/33%/34% of options. One option grants the right to purchase one Tecan share with settlement by physical delivery (equity-settled). All outstanding options are fully covered by the conditional share capital.

The number and weighted average exercise price of the share options are as follows:

		2023
	Weighted average exercise price (CHF)	Number	Weighted average exercise price (CHF)	Number
Balance at January 1	319.65	56,219	318.29	59,059
Granted	265.80	14,313	220.20	19,103
Exercised	215.33	(9,488)	228.13	(6,558)
Forfeited or expired	470.36	(1,985)	377.52	(2,383)
Balance at December 31	318.29	59,059	297.72	69,221

The weighted average share price at the date of exercise was CHF 366.05 in 2023 and CHF 313.97 in 2024.

The expenses, recognized in profit or loss, are calculated as follows:

The fair value of services received in return for the share options granted is measured by reference to the share options vested multiplied by their fair value at grant date (measurement date). The estimate of the fair value is based

on a trinomial model. Changes in the fair value of the option after the grant date do not change the fair value of the services received.

Fair value of share options and key assumptions (not yet vested share option plans):

Grant	Share price	Exercise price	Expected volatility ¹	Option life	Expected dividends	Risk-free interest rate	Fair value
Plan 2022	CHF 571.50	CHF 571.50	33.48%	7.0 years	0.24%	0.12%	CHF 192.23
Plan 2023	CHF 356.60	CHF 356.60	34.34%	7.0 years	0.35%	1.83%	CHF 134.18
Plan 2024	CHF 265.80	CHF 265.80	36.04%	7.0 years	0.82%	1.47%	CHF 97.58
Plan 2025	CHF 220.20	CHF 220.20	30.80%	7.0 years	0.58%	0.45%	CHF 67.37

^1 Historic volatility with an underlying period that depends on the option life.

9.4.2 Employee share plans

9.4.2.1 Performance share matching plans (PSMP)

The terms and conditions of the outstanding grants are as follows, whereby all shares are delivered physically (equity-settled) and free of charge:

Plan	Employees entitled/grant date	Number of shares granted	Fair value at grant	Vesting period	Vesting conditions
Performance sl	hare matching plan (PSMP) 2022
Initial grant	Extended Management Board on March 9, 2022	9,210 shares	CHF 366.60	Immediate vesting ¹	None
	Other management on May 2, 2022	1,088 shares	CHF 288.60
Matching shares	Extended Management Board on March 9, 2022	23,025 shares (maximum of potential shares granted)	CHF 361.00	January 1, 2022 to December 31, 2024	Three years of service and performance
	Other management on May 2, 2022	2,721 shares (maximum of potential shares granted)	CHF 283.00		target
Performance sl	hare matching plan (PSMP) 2023
Initial grant	Extended Management Board on March 8, 2023	9,510 shares	CHF 388.30	Immediate vesting ¹	None
	Other management on May 2, 2023	1,190 shares	CHF 380.70
Matching shares	Extended Management Board on March 8, 2023	23,775 shares (maximum of potential shares granted)	CHF 382.50	January 1, 2023 to December 31, 2025	Three years of service and performance
	Other management on May 2, 2023	2,975 shares (maximum of potential shares granted)	CHF 374.90		target
Performance sl	hare matching plan (PSMP) 2024
Initial grant	Extended Management Board on March 6, 2024	11,771 shares	CHF 351.00	Immediate vesting ¹	None
	Other management on May 2, 2024	1,509 shares	CHF 322.60
Matching shares	Extended Management Board on March 6, 2024	29,428 shares (maximum of potential shares granted)	CHF 345.00	January 1, 2024 to December 31, 2026	Three years of service and performance
	Other management on May 2, 2024	3,773 shares (maximum of potential shares granted)	CHF 316.60		target

^1 Vested shares are blocked until the end of the performance period.

Data source: Financial data supplier

Number of shares outstanding at December 31:

	2023	2024
Employee shares
Balance at January 1	97,304	95,040
Granted	37,450	46,480
Deblocked and available to the participants	(39,262)	(32,435)
Forfeited	(452)	(2,431)
Balance at December 31	95,040	106,654

Thereof vested and transferred, but blocked until the end of the performance period	21,114	23,980

The expenses, recognized in profit or loss, are calculated as follows:

The fair value of services received in return for the shares granted is measured by reference to the shares vested multiplied by their fair value at grant date (measurement date). The fair value at grant represents the market value of one Tecan share adjusted for expected dividend payments during the vesting period. Changes in the fair value of the shares after the grant date do not change the fair value of the services received.

The number of matching shares is determined based on the following formula: number of shares from initial grant that qualify for matching shares, multiplied by the matching share factor. The matching share factor is dependent on the achievement of specific economic profit targets. In any case, the matching share factor will not be lower than 0.0 and not higher than 2.5.

Number of matching shares expected to vest on December 31, 2024:

Plan	Total base shares1	Matching share factor applied	Matching shares expected to vest2
PSMP 2022	10,104	0.0	0
PSMP 2023	10,261	1.25	12,826
PSMP 2024	12,704	2.5	31,760

¹ Only shares that qualify for matching shares.

9.4.2.2 Other share plans

The terms and conditions of the outstanding grants are as follows, whereby all shares are delivered physically (equity-settled) and free of charge:

Plan	Employees entitled/grant date	Number of shares granted	Fair value at grant	Vesting period	Vesting conditions
	Share plan 2024 – Board of Directors (BoD)
Annual grant	Board of Directors on April 18, 2024	1,208 shares	CHF 318.80	Graded vesting from May 1, 2024 to April 30, 2025	One year of service

9.4.3 Total expenses recognized

	2023	2024
CHF 1,000
Expenses arising from equity-settled share option plans	1,266	1,259
Expenses arising from equity-settled performance share matching plans	13,182	2,437
Expenses arising from equity-settled other share plans	371	391

Total expenses recognized, excluding social security costs	14,819	4,087

Corresponding current and deferred income taxes recognized directly in equity	(485)	(354)

Total amount reported in consolidated statement of changes in equity	14,334	3,733

² Not adjusted for expected fluctuation.

10 OTHER OPERATING RESULT

	Notes	2023	2024
CHF 1,000
Government grants for research activities		735	1,026
Reversal US government grant	24	4,411	5,253
Other government grants		105	128
Commissions income		211	–
Income related to sales and use tax positions		1,273	–
Other operating income (miscellaneous)		188	286
Total other operating income		6,923	6,693

		2023	2024
CHF 1,000
Other operating expenses (miscellaneous)		49	–

Total other operating expenses		49	–

11 FINANCIAL RESULT

	2023	2024
CHF 1,000
Financial income
Interest income	4,494	5,357
Subtotal financial income	4,494	5,357
Financial expenses
Interest expenses bond (amortized cost)	(264)	(263)
Interest expenses on lease liabilities	(671)	(2,259)
Other interest expenses	(40)	(52)
Net interest expense on liability for post-employment benefits	(358)	(602)
Other	15	(141)
Subtotal financial expenses	(1,318)	(3,317)
Net foreign exchange gains/(losses)
FX derivatives measured at fair value through profit or loss	5,376	(9,762)
Other net foreign exchange (losses)/gains	(10,714)	10,426
Subtotal net foreign exchange losses	(5,338)	664
Total financial result	(2,162)	2,704

12 INCOME TAXES

12.1 INCOME TAXES IN STATEMENT OF PROFIT OR LOSS AND RECONCILIATION

CHF 1,000	2023	2024
Current income taxes	33,659	18,611
Deferred income taxes	(31,929)	(7,998)

Total income taxes	1,730	10,613

The income tax expense can be analyzed as follows:

	2023	2024
CHF 1,000
Profit before taxes	133,805	78,277

Tax expense based on the Group's weighted average rate of 20.0% (2023: 19.4%)	25,957	15,678
Deferred taxes: tax rate change on opening deferred taxes and tax rate used for
calculation of deferred taxes different to currently effective rate	(1,482)	(3,222)
Non-deductible expenses and additional taxable income	3,776	601
Tax-free income and tax reductions	(2,458)	(1,904)
Transitional measures from Swiss tax reform1	(23,188)	477
Impact of tax losses	–	(1)
Unrecoverable withholding tax	(766)	123
Overprovided in prior years	(109)	(995)
Other	–	(144)
Tax expense reported	1,730	10,613

¹ See note 12.2.3

The tax rate of the Group is the weighted average tax rate obtained by applying the currently effective rate for each individual jurisdiction to its respective profit before taxes. As a result of changes in the country mix of the profit before taxes, the Group's expected tax rate for 2024 increased to 20.0%.

12.2 DEFERRED INCOME TAXES

12.2.1 Amounts recognized in the financial statements

Amounts recognized and movements in deferred tax assets and liabilities:

							31.12.2023
	Net balance at January 1	in profit or loss	Recognized in OCI ¹	directly in equity	Translation differences	Net	Deferred tax assets	Deferred tax liabilities
CHF 1,000	•			. ,
Deferred taxes arising from temporary different	ences
Receivables and contract assets	(913)	(825)	_	-	(1)	(1,739)	538	(2,277)
Inventories	15,537	3,128	_	-	(1,483)	17,182	17,717	(535)
Property, plant and equipment	(3,500)	1,885	_	_	203	(1,412)	642	(2,054)
Right-of-use assets	(12,042)	(90)	_	-	875	(11,257)	307	(11,564)
Intangible assets	(79,541)	9,328	-	-	6,508	(63,705)	-	(63,705)
Liabilities and accrued expenses	20,150	(1,169)	_	-	(1,543)	17,438	18,019	(581)
Deferred revenue	8,005	217	_	-	(734)	7,488	7,488	-
Liability for post-employment benefits	3,424	(818)	5,265	-	(43)	7,828	7,828	-
Provisions	2,056	1,176	_	(790)	(198)	2,244	5,852	(3,608)
Other	(2,304)	824	-	-	56	(1,424)	13	(1,437)
Subtotal	(49,128)	13,656	5,265	(790)	3,640	(27,357)	58,404	(85,761)
Expected tax benefits from
Tax loss carry-forwards	3,917	(564)	_	-	(316)	3,037	3,037	-
Swiss tax reform	14,292	18,054	-	-	-	32,346	32,346	-
Deferred taxes provided on dividends from subsidiaries	(2,352)	776	-	-	-	(1,576)	-	(1,576)
Offsetting	-	-	_	-	-	-	(42,032)	42,032
Total	(33,271)	31,922	5,265	(790)	3,324	6,450	51,755	(45,305)

^1 Other comprehensive income.

							31.12.2024
CHF 1,000	Net balance at January 1	in profit or loss	Recognized in OCI ¹	directly in equity	Translation differences	Net	Deferred tax assets	Deferred tax liabilities
Deferred taxes arising from temporary differ	ences
Receivables and contract assets	(1,739)	(68)	-	-	(2)	(1,809)	733	(2,542)
Inventories	17,182	2,784	_	-	1,006	20,972	21,519	(547)
Property, plant and equipment	(1,412)	(1,544)	_	-	(174)	(3,130)	223	(3,353)
Right-of-use assets	(11,257)	(2,587)	_	-	(589)	(14,433)	321	(14,754)
Intangible assets	(63,705)	11,608	_	-	(4,579)	(56,676)	_	(56,676)
Liabilities and accrued expenses	17,438	6,113	_	-	1,127	24,678	25,200	(522)
Deferred revenue	7,488	(1,268)	_	-	549	6,769	6,769	-
Liability for post-employment benefits	7,828	663	(3,572)	-	(2)	4,917	4,917	-
Provisions	2,244	(75)	_	(443)	116	1,842	2,711	(869)
Other	(1,424)	381	(3,334)	-	(69)	(4,446)	1,137	(5,583)
Subtotal	(27,357)	16,007	(6,906)	(443)	(2,617)	(21,316)	63,530	(84,846)
Expected tax benefits from
Tax loss carry-forwards	3,037	(211)	_	_	231	3,057	3,057	-
Swiss tax reform	32,346	(7,749)	-	-	-	24,597	24,597	-
Deferred taxes provided on dividends from subsidiaries	(1,576)	(49)	-	-	-	(1,625)	-	(1,625)
Offsetting							(49,964)	49,964
Total	6,450	7,998	(6,906)	(443)	(2,386)	4,713	41,220	(36,507)

^1 Other comprehensive income.

Temporary differences on intangible assets primarily relate to assets recognized during the purchase price allocation process for business combinations.

12.2.2 Tax benefits from tax loss carry-forwards

Deferred tax assets related to tax loss carry-forwards:

		Gross value of tax loss carry-forwards not capitalized		nefits
	31.12.2023	31.12.2024	31.12.2023	31.12.2024
CHF 1,000
Expiring in
1st-5th year			-	-
6 ^th year or beyond			1,178	1,052
Unlimited			1,859	2,005
Tax loss carry-forwards capitalized			3,037	3,057
lax loss carry-lorwards capitalized			3,037	3,037
Expiring in
1st-5th year	-	-	-	-
6 ^th year or beyond	13,844	10,291	967	719
Unlimited	-	-	-	_
Tax loss carry-forwards not capitalized	13,844	10,291	967	719
Total tax loss carry-forwards	13,844	10,291	4,004	3,776

12.2.3 Tax benefits from the Swiss tax reform

On May 19, 2019, the Swiss electorate passed the Federal Act on Tax Reform and AHV Financing (TRAF). The tax reform abolished the tax regimes for holding, domiciliary and mixed companies as of January 1, 2020 and introduced new tax calculation principles. As part of the TRAF and cantonal tax practice, transitional measures were introduced to ease the transition from the current reliefs to the new tax calculation principles. For the Group, these measures allow amongst others the tax-effective amortization of a step-up amount over a period of up to 10 years. Therefore, the Group started to capitalize corresponding deferred tax assets in 2019.

Tax benefits related to the step-up mechanism that are not capitalized at year-end:

		Gross value of tax benefits not capitalized		Tax benefits
	Year	31.12.2023	31.12.2024	31.12.2023	31.12.2024
CHF 1,000
Tax benefits available for
Federal taxes	Until 2029	–	–	–	–
Cantonal taxes	Until 2029	153,152	153,417	17,781	17,689

Tax benefits not capitalized		153,152	153,417	17,781	17,689

12.2.4 Unrecognized deferred tax liabilities

On December 31, 2024, there are temporary differences of CHF 1,130.0 million (2023: CHF 964.0 million) related to investments in subsidiaries for which no deferred tax liabilities are recognized since the Group controls the timing of reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future.

13 EARNINGS PER SHARE

The earnings per share are based on the consolidated profit for the period and the average number of shares outstanding, excluding treasury shares.

	2023	2024
Average number of shares outstanding 12,770,050			12,766,549
Basic earnings per share (CHF/share)	10.34		5.30
Employee share option plans
Average number of shares under option total	51,392	58,068
Average number of shares under option dilutive	26,492	–
Average adjusted exercise price	235.02	–
Number of shares that would have been issued at market price	(18,131)	–
Adjustment for dilutive share options	8,361		–
Employee share plans
Adjustment for contingently issuable shares (PSMP/matching shares)	41,408		13,531
Adjustment for not vested shares (other share plans)	949		1,118
Average number of shares outstanding after dilution	12,820,768		12,781,198
Diluted earnings per share (CHF/share)	10.30		5.29

14 CASH AND CASH EQUIVALENTS

	31.12.2023	31.12.2024
CHF 1,000
Bank balances
Denominated in CHF	44,828	26,232
Denominated in EUR	36,599	39,542
Denominated in GBP	1,791	6,280
Denominated in USD	37,646	70,163
Denominated in CNY	7,598	4,588
Denominated in JPY	757	747
Denominated in other currencies	3,746	6,641
Total cash and cash equivalents	132,965	154,193
Effective interest rate	1.21%	1.1.%

15 OTHER CURRENT FINANCIAL ASSETS

	Notes	31.12.2023	31.12.2024
CHF 1,000
Time deposits with a term of three months or more from the
date of acquisition, denominated in CHF		230,000	250,000
Current derivatives (foreign currency forwards)	28.2	3,845	150
Convertible bonds (FVTPL)	29.2	3,458	1,815

Total other current financial assets		237,303	251,965

At year-end 2024, there are time deposits with interest rates ranging from 0.5% to 1.1% (2023: time deposits with interest rates ranging from 1.70% to 2.00%).

16 TRADE ACCOUNTS RECEIVABLE

	31.12.2023	31.12.2024
CHF 1,000
Trade accounts receivable
Denominated in CHF	31,990	27,841
Denominated in EUR	22,266	22,256
Denominated in GBP	3,351	3,391
Denominated in USD	95,517	89,299
Denominated in CNY	882	887
Denominated in JPY	3,040	2,956
Denominated in other currencies	4,031	4,042
Subtotal trade accounts receivable	161,077	150,672
Allowance for expected credit losses
Individual impairment allowance account	(129)	(274)
Collective impairment allowance account	(2,271)	(1,837)
Subtotal allowance for expected credit losses	(2,400)	(2,111)
Total trade accounts receivable	158,677	148,561

Net increase/(decrease)	13,452	(13,825)
Reclass to investments	–	(3,501)
Translation differences	(11,610)	7,210
Total change compared with previous year	1,842	(10,116)

The maximum exposure to credit risk for trade accounts receivable at the reporting date by geographic region (location of the debtor) is:

	31.12.2023	31.12.2024
CHF 1,000
Switzerland (domestic)	18,445	18,460
Euro-zone countries	27,384	25,512
Other European countries	8,395	8,577
North America	88,546	80,079
Asia	14,880	14,967
Other	3,427	3,077

Total trade accounts receivable (excluding allowances)	161,077	150,672

The Group's most significant customer accounts for 8.3% of the trade accounts receivable carrying amount on December 31, 2024 (December 31, 2023: 10.8%).

The movement in the allowance for impairment in respect of trade accounts receivable during the year was as follows:

2023	2024
CHF 1,000
Individual impairment allowance account
Balance at January 1 (332)	(129)
Change in impairment losses (274)	(510)
Write-offs 460	377
Translation differences 17	(12)
Balance at December 31 (129)	(274)
Amount of trade accounts receivable with individual impairment (gross) 74,647	83,181
Collective impairment allowance account
Balance at January 1 (2,650)	(2,271)
Change in impairment losses 209	532
Translation differences 170	(98)
Balance at December 31 (2,271)	(1,837)

The due dates of trade accounts receivable that are collectively impaired are:

	31.12.2023		31.12.2024
	Gross	Impairment	Gross	Impairment
CHF 1,000
Not past due	58,839	(359)	51,476	(166)
Past due 1 – 30 days	16,724	(110)	7,727	(40)
Past due 31 – 90 days	7,536	(249)	4,996	(125)
Past due 91 – 180 days	2,386	(526)	1,887	(395)
Past due more than 180 days	945	(1,027)	1,405	(1,111)
Total	86,430	(2,271)	67,491	(1,837)

The Group did not experience any severe financial difficulties with its debtors in the past. The sum of all recognized final write-offs of trade accounts receivable in 2023 and 2024 represents less than 1% of sales.

17 INVENTORIES

	31.12.2023	31.12.2024
CHF 1,000
Raw materials, semi-finished and finished goods	241,859	233,033
Allowance for slow-moving inventories	(30,713)	(37,991)
Work in progress	17,452	10,372
Capitalized customer-specific development costs	25,770	25,085
Total inventories	254,368	230,499
Net decrease	(29,473)	(35,482)
Acquisition through business combination	–	853
Reclassifications	116	138
Translation differences	(16,863)	10,622
Total change compared with previous year	(46,220)	(23,869)
Amount of write-offs due to slow-moving inventories charged to the
statement of profit or loss	6,333	8,329

18 NON-CURRENT FINANCIAL ASSETS

	Notes	31.12.2023	31.12.2024
CHF 1,000
Convertible bonds (FVTPL)	29.2	–	3,629
Unquoted equity investment (FVOCI)	29.2	3,901	2,352
Rent and other deposits		1,349	1,386

Total non-current financial assets		5,250	7,367

<-- PDF CHUNK SEPARATOR -->

19 PROPERTY, PLANT AND EQUIPMENT

	Buildings	Leasehold improvements	Furniture and fittings	Machines and motor vehicles	EDP equipment	Equipment leased to customers1	Total 2023
CHF 1,000
At cost
Balance at January 1, 2023	14,333	20,761	15,704	113,109	23,674	3,292	190,873
Additions	547	924	959	13,740	2,565	698	19,433
Disposals	–	(142)	(1,128)	(6,766)	(4,682)	–	(12,718)
Reclassifications	580	(397)	201	(2,103)	1,604	(240)	(355)
Translation differences	(1,360)	(930)	(656)	(7,272)	(1,112)	(392)	(11,722)
Balance at December 31, 2023	14,100	20,216	15,080	110,708	22,049	3,358	185,511
Accumulated depreciation and impairment losses
Balance at January 1, 2023	388	13,801	12,150	49,652	18,651	2,206	96,848
Annual depreciation	341	1,848	1,070	18,266	2,879	545	24,949
Impairment losses	–	–	–	536	–	–	536
Disposals	–	(142)	(1,109)	(6,274)	(4,676)	–	(12,201)
Reclassifications	257	208	288	(2,226)	1,446	(210)	(237)
Translation differences	(73)	(575)	(483)	(3,143)	(873)	(258)	(5,405)
Balance at December 31, 2023	913	15,140	11,916	56,811	17,427	2,283	104,490
Net book value	13,187	5,076	3,164	53,897	4,622	1,075	81,021
1 See note 6
	Buildings	Leasehold improvements	Furniture and fittings	Machines and motor vehicles	EDP equipment	Equipment leased to customers1	Total 2024
CHF 1,000
At cost
Balance at January 1, 2024	14,100	20,216	15,080	110,708	22,049	3,358	185,511
Acquisition through business combination	–	–	6	35	–	–	41
Additions	595	3,724	471	8,098	1,923	468	15,279
Disposals	–	(3,394)	(275)	(2,795)	(600)	–	(7,064)
Reclassifications	(483)	–	–	(257)	(699)	(194)	(1,633)
Translation differences	1,108	627	374	5,181	659	133	8,082
Balance at December 31, 2024	15,320	21,173	15,656	120,970	23,332	3,765	200,216
Accumulated depreciation and impairment losses
Balance at January 1, 2024	913	15,140	11,916	56,811	17,427	2,283	104,490
Annual depreciation	329	2,087	1,016	13,956	2,393	395	20,176
Disposals	–	(3,394)	(273)	(2,579)	(592)	–	(6,838)
Reclassifications	–	–	–	(68)	(63)	(71)	(202)
Translation differences	81	366	286	2,488	518	99	3,838

Balance at December 31, 2024 1,323 14,199 12,945 70,608 19,683 2,706 121,464

Net book value 13,997 6,974 2,711 50,362 3,649 1,059 78,752

There were no purchase commitments at year-end 2023 and 2024.

¹ See note 6

20 RIGHT-OF-USE ASSETS (GROUP AS LESSEE)

This note provides information for leases where the Group is a lessee. For leases where the Group is a lessor see note 6.

20.1 AMOUNTS RECOGNIZED IN THE FINANCIAL STATEMENTS

The amounts recognized in the balance sheet are as follows:

	Property	Office equipment	Motor vehicles	Total
CHF 1,000
Balance at January 1, 2023	53,456	51	1,874	55,381
Additions and subsequent measurement	24,915	(6)	1,840	26,749
Disposal	–	–	(55)	(55)
Depreciation	(12,966)	(19)	(1,201)	(14,186)
Translation differences	(3,634)	(5)	(101)	(3,740)
Balance at December 31, 2023	61,771	21	2,357	64,149
Additions and subsequent measurement	13,901	13	1,391	15,305
Disposal	(18)	–	21	3
Depreciation	(12,171)	(15)	(1,331)	(13,517)
Translation differences	2,606	–	30	2,636
Balance at December 31, 2024	66,089	19	2,468	68,576

The related lease liabilities are disclosed in note 22.

The amounts recognized in the statement of profit or loss are as follows:

	2023	2024
CHF 1,000
Depreciation expense of right-of-use assets	14,186	13,517
Expense related to short-term and low value leases	142	45
Interest cost on lease liabilities (included in finance cost)	671	2,259
Total amount recognized in profit or loss	14,999	15,821

In financial year 2024, the Group paid a total amount of CHF 15.3 million (2023: CHF 14.7 million) to its lessors.

20.2 ADDITIONAL DISCLOSURES

The Group has several property lease contracts that include renewal and termination options. Where useful, the Group aims to incorporate options into its leases to maximize operational flexibility. Normally, these options are exercisable only by the lessee and not by the lessors. For all locations, the undiscounted potential future rental payments relating to periods following the exercise date of the options are estimated at CHF 89.9 million, of which CHF 18.1 million, particularly the US locations of Paramit, are considered in the valuation of the right-of-use assets as of December 31, 2024.

At year-end 2024, there are no new lease commitments with commencement date after the balance sheet date (2023: none).

21 INTANGIBLE ASSETS AND GOODWILL

21.1 AMOUNTS RECOGNIZED IN THE FINANCIAL STATEMENTS

	Development costs	Software	Patents and other rights	Acquired brand	Acquired client relationships	Acquired technology	Goodwill	Total 2023
CHF 1,000
At cost
Balance at January 1, 2023	126,221	38,905	578	17,186	255,994	81,295	775,140	1,295,319
Additions	–	–	1,313	–	–	–	–	1,313
Internally developed	12,327	3,183	–	–	–	–	–	15,510
Disposals	–	(50)	–	–	–	–	–	(50)
Translation differences	(1,021)	(133)	(33)	(1,521)	(22,569)	(6,805)	(65,190)	(97,272)
Balance at December 31, 2023	137,527	41,905	1,858	15,665	233,425	74,490	709,950	1,214,820
Accumulated amortization and impairment losses
Balance at January 1, 2023	86,936	31,185	350	3,878	26,324	18,639	–	167,312
Annual amortization	10,426	1,692	28	1,569	11,746	6,198	–	31,659
Disposals	–	(50)	–	–	–	–	–	(50)
Translation differences	(298)	(64)	(15)	(427)	(2,825)	(1,689)	–	(5,318)
Balance at December 31, 2023	97,064	32,763	363	5,020	35,245	23,148	–	193,603

Net book value	40,463	9,142	1,495	10,645	198,180	51,342	709,950	1,021,217
CHF 1,000	Development costs	Software	Patents and other rights	Acquired brand	Acquired client relationships	Acquired technology	Goodwill	Total 2024
At cost
Balance at January 1, 2024	137,527	41,905	1,858	15,665	233,425	74,490	709,950	1,214,820
Acquisition through business combination	–	–	–	–	341	–	–	341
Internally developed	13,000	1,698	–	–	–	–	–	14,698
Disposals	(1,905)	–	–	(792)	–	(3,905)	–	(6,602)
Reclassification	–	956	–	–	–	–	–	956
Translation differences	792	91	26	1,186	17,694	5,295	51,005	76,089
Balance at December 31, 2024	149,414	44,650	1,884	16,059	251,460	75,880	760,955	1,300,302
Accumulated amortization and impairment losses
Balance at January 1, 2024	97,064	32,763	363	5,020	35,245	23,148	–	193,603
Annual amortization	10,724	3,114	290	1,506	11,561	5,917	–	33,112
Impairment losses	5,602	–	–	–	–	–	–	5,602
Disposals	(1,905)	–	–	(792)	-	(3,905)	–	(6,602)
Reclassification	–	131	–	–	–	–	–	131
Translation differences	480	47	13	399	2,723	1,532	–	5,194
Balance at December 31, 2024	111,965	36,055	666	6,133	49,529	26,692	–	231,040

Net book value	37,449	8,595	1,218	9,926	201,931	49,188	760,955	1,069,262

The amortization charge is recognized in the following line items of the statement of profit or loss:

	2023	2024
CHF 1,000
Sales and marketing	13,315	13,330
Research and development	16,652	22,270
General and administration	1,692	3,114

Total amortization	31,659	38,714

21.2 IMPAIRMENT TESTS

For impairment testing, goodwill is allocated to a cash-generating unit or to a group of cash-generating units that are expected to benefit from the synergies of the corresponding business combination. Subsequently, the recoverable amount of the cash-generating unit (higher of fair value less costs of disposal and value in use) is compared with its carrying amount. An impairment loss is only recognized if the carrying amount of the cash-generating unit exceeds its recoverable amount. Value in use is normally assumed to be higher than the fair value less costs of disposal; therefore, fair value less costs of disposal is only investigated when value in use is lower than the carrying amount of the cash-generating unit.

Value in use is calculated according to the discounted cash flow method. The cash flow projections are based on a five-year financial planning period. Cash flows beyond the five-year period are extrapolated applying the estimated long-term growth rates stated below. The expected growth in sales is based on external market studies and internal assessments prepared by management. Future cash flows are discounted using the weighted average cost of capital (WACC). The discount rates applied are pre-tax.

21.2.1 Financial year 2024

The Group performed impairment tests on cash-generating units containing goodwill in June 2024, using the following key assumptions:

Goodwill Cash-generating unit	Method	Carrying amount (CHF 1,000)	Test date	Basis for recoverable amount	Pre-tax discount rate	Projection period	Long-term growth rate
Goodwill Life Sciences Business Life Sciences Business	DCF-method	108,735	June 2024	Value in use	11.1%	5 years	1.7%
Goodwill Partnering Business Partnering Business	DCF-method	652,220	June 2024	Value in use	11.1%	5 years	1.7 %

In addition, the Group prepared mandatory impairment tests for capitalized development costs relating to products that are not yet launched on the market on August 31, 2024.

Based on the impairment tests 2024, there was no need for the recognition of any impairment. Management believes that no reasonably possible change in any of the above key assumptions would cause the carrying amount of the cashgenerating unit to materially exceed its recoverable amount.

A profound review of the of the product portfolio triggered an aperiodic impairment test in the area of reagents. The tests showed that a product launched in 2022 did not meet the expectations of the original business case. Consequently, the Group recognized an impairment of CHF 5.6 million on the capitalized development costs which was charged to the business segment 'Life Sciences Business'. The recoverable amount of the asset was determined based on its value in use, which was CHF 0 million.

21.2.2 Financial year 2023

The Group performed impairment tests on cash-generating units containing goodwill in June 2023, using the following key assumptions:

Goodwill Cash-generating unit	Method	Carrying amount (CHF 1,000)	Test date	Basis for recoverable amount	Pre-tax discount rate	Projection period	Long-term growth rate
Goodwill Life Sciences Business Life Sciences Business	DCF-method	103,751	June 2023	Value in use	10.3%	5 years	1.9%
Goodwill Partnering Business Partnering Business	DCF-method	606,199	June 2023	Value in use	10.5%	5 years	1.9 %

In addition, the Group prepared mandatory impairment tests for capitalized development costs relating to products that are not yet launched on the market on August 31, 2023.

Based on the impairment tests 2023, there was no need for the recognition of any impairment.

22 FINANCIAL LIABILITIES

	Short term credit facilities	Derivatives1	Bank loans	Bond	Contingent liability	Leases	Total 2023
CHF 1,000
Balance at January 1, 2023	1	281	623	249,645	–	57,414	307,964
Cash flows
Change	5	–	–	–	–	–	5
Interest payment	–	–	–	(125)	–	–	(125)
Repayment	–	–	(612)	–	–	–	(612)
Payments to lessors (including interests)	–	–	–	–	–	(14,563)	(14,563)
Non-cash changes
Acquisition of rights (intangible asset)	–	–	–	–	613	–	613
Change in fair value	–	(281)	–	–	–	–	(281)
Amortized cost	–	–	–	264	–	–	264
New leases and disposals	–	–	–	–	–	26,694	26,694
Accretion of interest	–	–	–	–	–	671	671
Translation differences	–	–	(11)	–	–	(3,912)	(3,923)
Balance at December 31, 2023	6	–	–	249,784	613	66,304	316,707
Thereof current	6	–	–	–	613	12,234	12,853
Thereof non-current	–	–	–	249,784	–	54,070	303,854
Analysis by currency
Denominated in CHF							259,345
Denominated in EUR							7,916
Denominated in USD							44,355
Denominated in other currencies							5,091
Total							316,707
Analysis by interest rate
Interest-free							–
Fixed interest rate
0 % – 2 %							275,980
2 % – 4 %							5,403
4 % – 6 %							35,324
Total							316,707

¹ See note 28

	Short term credit facilities	Derivatives1	Bond	Contingent liability	Leases	Total 2024
CHF 1,000
Balance at January 1, 2024	6	–	249,784	613	66,304	316,707
Cash flows
Change	(5)	–	–	–	–	(5)
Interest payment	–	–	(125)	–	–	(125)
Settlement	–	–	–	(424)	–	(424)
Payments to lessors (including interests)	–	–	–	–	(15,224)	(15,224)
Non-cash changes
Acquisition through business combination	–	–	–	425	–	425
Change in fair value	–	4,123	–	–	–	4,123
Amortized cost	–	–	264	–	–	264
New leases and disposals	–	–	–	–	15,308	15,308
Accretion of interest	–	–	–	–	2,259	2,259
Translation differences	(1)	–	–	(1)	2,775	2,773
Balance at December 31, 2024	–	4,123	249,923	613	71,422	326,081
Thereof current	–	4,123	249,923	613	11,470	266,129
Thereof non-current	–	–	–	–	59,952	59,952
Analysis by currency
Denominated in CHF						266,321
Denominated in EUR						8,615
Denominated in USD						46,435
Denominated in other currencies						4,710
Total						326,081
Analysis by interest rate
Interest-free						4,123
Fixed interest rate
0 % – 2 %						281,262
2 % – 4 %						2,038
4 % – 6 %						38,658
Total						326,081

¹ See note 28

In 2024, the interest rate paid on the bond was 0.05% (2023: 0.05%).

Tecan Annual Report 2024 Consolidated financial statements

23 CONTRACT LIABILITIES

	31.12.2023		31.12.2024
	Current	Non-current	Current	Non-current
CHF 1,000
Timing of revenue recognition: point in time
Advances for products	29,042	5,404	20,768	5,890

Timing of revenue recognition: over time
Advances for products	25,475	–	26,721	–
Service contracts, including service-type warranties	27,958	3,078	32,235	3,214
Total contract liabilities	82,475	8,482	79,724	9,104
Net decrease		(13,538)		(6,311)
Translation differences		(6,831)		4,182
Total change (current and non-current) compared with previous year		(20,369)		(2,129)

24 GOVERNMENT GRANTS

	2023	2024
CHF 1,000
Balance at January 1	30,381	23,519
Reversed (included in other operating income)	(4,411)	(5,253)
Translation differences	(2,451)	1,682

Balance at December 31	23,519	19,948

Thereof current	5,534	4,987
Thereof non-current	17,985	14,961

In October 2020, the U.S. Department of Defense and the U.S. Department of Health and Human Services awarded a government grant of USD 32.9 million to establish new production capacity in the U.S. for pipette tips, which are key components for COVID-19 testing. The amount was fully paid to the Group by the end of 2022 (CHF 30.4 million). The related production lines are reported in position property, plant and equipment and were ready for use since April 2023. Consequently, the Group has started to reverse the government grant in the consolidated statement of profit or loss in proportion to the depreciation amount.

25 PROVISIONS

CHF 1,000	Restructuring and dismantling	Onerous contracts	Warranties and returns	WEEE1	Legal cases	Other	Total 2023
Balance at January 1, 2023	76	2,499	21,089	1,443	5,006	9,858	39,971
Provisions recognized	1,000	518	19,293	62	381	2,254	23,508
Provisions used	–	–	(17,958)	–	(2,448)	–	(20,406)
Provisions reversed	–	(2)	(2,998)	–	(2,197)	(979)	(6,176)
Translation differences	(3)	(2)	(821)	(84)	(108)	(255)	(1,273)
Balance at December 31, 2023	1,073	3,013	18,605	1,421	634	10,878	35,624
Thereof current	1,000	3,013	18,605	–	634	3,837	27,089
Thereof non-current	73	–	–	1,421	–	7,041	8,535

¹ WEEE = waste electrical and electronic equipment (directive 2002/96/EC)

CHF 1,000	Restructuring and dismantling	Onerous contracts	Warranties and returns	WEEE1	Legal cases	Other	Total 2024
Balance at January 1, 2024	1,073	3,013	18,605	1,421	634	10,878	35,624
Provisions recognized	162	271	21,204	29	1,252	210	23,128
Provisions used	(1,122)	(322)	(19,905)	(2)	–	(1,782)	(23,133)
Provisions reversed	–	(396)	(3,292)	–	(428)	(2,483)	(6,599)
Reclassification	–	–	–	–	1,800	–	1,800
Translation differences	6	(4)	560	24	37	91	714
Balance at December 31, 2024	119	2,562	17,172	1,472	3,295	6,914	31,534
Thereof current	42	2,562	17,172	–	3,295	2,454	25,525
Thereof non-current	77	–	–	1,472	–	4,460	6,009

¹ WEEE = waste electrical and electronic equipment (directive 2002/96/EC).

The provision for legal cases (2024: CHF 3.3 million and 2023: CHF 0.6 million) relates to several legal cases with former customers and employees in various subsidiaries and a patent lawsuit, for which the timing of the settlement is uncertain at year-end.

The position 'other' includes: 1. provisions to cover commitments related to other non-current employee benefits (2024: CHF 4.8 million and 2023: CHF 7.3 million), 2. provisions in connections with controversial VAT and sales/ use tax positions (2024: CHF 1.7 million and 2023: CHF 1.7 million) 3. several minor provisions (2024: CHF 0.4 million and 2023: CHF 1.9 million).

26 SHAREHOLDERS' EQUITY

26.1 SHARE CAPITAL AND CAPITAL RESERVE

Holders of ordinary shares are entitled to dividends and to one vote per share at the General Meetings of Shareholders. All payments of the shareholders in excess of the nominal value of the share (CHF 0.10 / share) are classified to capital reserve (share premium).

26.2 NATURE AND PURPOSE OF THE EQUITY RESERVES

26.2.1 Treasury shares

The Position 'Treasury shares' comprises the cost of the treasury shares held by the Group. All rights attached to treasury shares are suspended until those shares are reissued.

26.2.2 Translation differences

The translation differences comprise all foreign currency differences arising from the translation of the financial statements of foreign operations from their functional currency into the reporting currency (CHF).

26.3 MOVEMENTS IN SHARES ISSUED AND OUTSTANDING

	Shares issued	Treasury shares	Shares outstanding
Shares (each share has a nominal value of CHF 0.10)
Balance at January 1, 2023	12,731,441	–	12,731,441
New shares issued based on employee participation plans
(conditional share capital increase)	51,646	–	51,646
Balance at December 31, 2023	12,783,087	–	12,783,087
New shares issued based on employee participation plans
(conditional share capital increase)	42,796	–	42,796
Purchase of treasury shares	–	(100,000)	(100,000)
Balance at December 31, 2024	12,825,883	(100,000)	12,725,883

26.4 CONDITIONAL SHARE CAPITAL RESERVED FOR THE EMPLOYEE PARTICIPATION PLANS

Shares (each share has a nominal value of CHF 0.10)	2023	2024
Balance at January 1	221,771	170,125
New shares issued based on employee participation plans	(51,646)	(42,796)
Balance at December 31	170,125	127,329
Maximum of employee share options and employee shares outstanding	133,922	153,103

Effective January 1, 2025, the Group will fund the outstanding employee participation plans with treasury shares.

26.5 CONDITIONAL SHARE CAPITAL FOR THE PURPOSE OF FUTURE BUSINESS DEVELOPMENT

	31.12.2023	31.12.2024
Conditional share capital
Shares (with a nominal value of CHF 0.10 each)	1,800,000	1,800,000
CHF	180,000	180,000

26.6 DIVIDENDS PAID

	2023	2024	2025 Proposed
Number of shares eligible for dividend	12,766,934	12,773,441	12,725,883
Dividends paid (CHF/share)	1.45	1.50	1.50
Payout from statutory capital contribution reserve (CHF/share)	1.45	1.50	1.50

26.7 CAPITAL MANAGEMENT

The Board's policy is to maintain a strong capital base to ensure investor, creditor and market confidence and to sustain future development of business. It is the Group's target to keep a minimum equity ratio of 30% (reported in 2024: 67.7% and 2023: 65.0%), which limits the level of borrowings. Changes to this target are subject to the Board of Directors' approval. In addition, all covenants relating to bank liabilities must be satisfied at any time.

The Board of Directors monitors both the earnings per share and the ability of the Group to undertake future business development. Amongst others it may initiate share buyback programs to rebalance the position of the Group in relation to these targets.

The level of dividend payments to shareholders shall be kept on a constant and ongoing level.

There were no changes in the Group's approach to capital management during the year.

27 FOREIGN EXCHANGE RATES

The following foreign exchange rates were used for the preparation of the consolidated financial statements:

		Closing exchange rates	Average exchange rates January to December
CHF		31.12.2023	31.12.2024	2023	2024
EUR	1	0.93	0.94	0.97	0.95
GBP	1	1.07	1.14	1.12	1.13
SEK	100	8.34	8.20	8.47	8.33
USD	1	0.84	0.91	0.90	0.88
CNY	1	0.12	0.12	0.13	0.12
JPY	100	0.60	0.58	0.64	0.58
AUD	1	0.57	0.56	0.60	0.58

28 FINANCIAL RISK MANAGEMENT

28.1 INTRODUCTION

The Group's activities expose it to a variety of financial risks: credit risk, market risk (including interest rate risk and foreign currency risk) and liquidity risk. The Group's risk management focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial performance. The Group uses derivative financial instruments to economically hedge certain risk exposures.

Financial risk management is carried out by a central treasury department (Group Treasury) under policies approved by the Board of Directors (Treasury Policy). Group Treasury identifies, evaluates and hedges financial risks in close co-operation with the Group's operating units. The 'Treasury Policy' provides principles for specific areas, such as credit risk, interest rate risk, foreign currency risk, use of derivative financial instruments and investment of excess liquidity.

This note presents information about the Group's exposure to each of the risks arising from financial instruments and the Group's objectives, policies and processes for measuring and managing risk. Further quantitative disclosures are included throughout these consolidated financial statements.

28.2 CLASSES OF FINANCIAL INSTRUMENTS

	Cash and cash equivalents	Other current financial assets	Trade and other receivables	Non-current financial assets	Total assets 2023	Current financial liabilities	Trade and other payables/ accrued expenses	Non-current financial liabilities	Total liabilities 2023
CHF 1,000
Derivatives not designated as hedging instruments (FVTPL)
Currency forwards	–	3,845	–	–	3,845	–	–	–	–
Financial instruments measured at fair value through profit or loss (FVTPL)
Convertible bonds	–	3,458	–	–	3,458	–	–	–	–
Contingent consideration	–	–	–	–	–	(613)	–	–	(613)
Financial instruments measured at fair value through OCI (FVOCI)
Unquoted equity investment	–	–	–	3,901	3,901	–	–	–	–
Financial instruments measured at amortized costs
Cash and cash equivalents	132,965	–	–	–	132,965	–	–	–	–
Time deposits	–	230,000	–	–	230,000				–
Receivables	–	–	159,464	–	159,464	–	–	–	–
Rent and other deposits	–	–	960	1,349	2,309	–	–	–	–
Current bank liabilities	–	–	–	–	–	(6)	–	–	(6)
Payables and accrued expenses	–	–	–	–	–	–	(121,597)	–	(121,597)
Bond	–	–	–	–	–	–	–		(249,784) (249,784)
Other
Lease liabilities	–	–	–	–	–	(12,234)	–		(54,070) (66,304)
Total financial instruments		132,965 237,303	160,424	5,250	535,942	(12,853)		(121,597) (303,854) (438,304)
Reconciling items1	–	–	11,269	–	11,269	–	(25,441)	–	(25,441)
Balance at December 31, 2023		132,965 237,303	171,693	5,250	547,211	(12,853)		(147,038) (303,854) (463,745)

¹ Receivables/payables arising from VAT/other non-income taxes and social security.

Tecan Annual Report 2024 Consolidated financial statements

CHF 1,000	Cash and cash equivalents	Other current financial assets	Trade and other receivables	Non-current financial assets	Total assets 2024	Current financial liabilities	Trade and other payables/ accrued expenses	Non-current financial liabilities	Total liabilities 2024
Derivatives not designated as hedging instruments (FVTPL)
Currency forwards	–	150	–	–	150	(4,123)	–	–	(4,123)
Financial instruments measured at fair value through profit or loss (FVTPL)
Convertible bonds	–	1,815	–	3,629	5,444	–	–	–	–
Contingent consideration	–	–	–	–	–	(613)	–	–	(613)
Financial instruments measured at fair value through OCI (FVOCI)
Unquoted equity investment	–	–	–	2,352	2,352	–	–	–	–
Financial instruments measured at amortized costs
Cash and cash equivalents	154,193	–	–	–	154,193	–	–	–	–
Time deposits	–	250,000	–	–	250,000				–
Receivables	–	–	150,813	–	150,813	–	–	–	–
Rent and other deposits	–	–	1,070	1,386	2,456	–	–	–	–
Payables and accrued expenses	–	–	–	–	–	–	(95,262)	–	(95,262)
Bond	–	–	–	–		– (249,923)	–		– (249,923)
Other
Lease liabilities	–	–	–	–	–	(11,470)	–	(59,952)	(71,422)
Total financial instruments	154,193	251,965	151,883	7,367	565,408	(266,129)	(95,262)		(59,952) (421,343)
Reconciling items1	–	–	8,547	–	8,547	–	(27,375)	–	(27,375)
Balance at December 31, 2024	154,193	251,965	160,430	7,367	573,955	(266,129)	(122,637)		(59,952) (448,718)

¹ Receivables/payables arising from VAT/other non-income taxes and social security.

28.3 CREDIT RISKS

Credit risk is the risk of financial loss to the Group if a customer or counterparty to financial instruments fails to meet its contractual obligations, and arises principally from cash and cash equivalents, time deposits, derivatives and trade accounts receivable.

All domestic and international bank relationships are selected by the CFO and Group Treasury. Only banks and financial institutions that are ranked in the top class of the respective country are accepted.

The credit risk with trade accounts receivable (see note 16) is diversified, as the Group has numerous clients located in various geographical regions. The Group's exposure to credit risk is influenced mainly by the individual characteristics of each customer. For risk control, the customers are grouped as follows (risk groups): governmental organizations, listed public limited companies, and other customers. Credit limits are established for each customer, whereby the credit limit represents the maximum open amount without requiring payments in advance or letters of credit; these limits are reviewed regularly (credit check).

The maximum exposure to credit risk is represented by the carrying amount of each financial asset, including derivative financial instruments, in the balance sheet. There are no commitments that could increase this exposure to more than the carrying amounts.

28.4 MARKET RISKS

Market risk is the risk that changes in market prices, such as interest rates and foreign exchange rates, will affect the Group's result or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk.

28.4.1 Interest rate risks

At the reporting date the Group had the following interest-bearing financial instruments: cash and cash equivalents, time deposits, rent deposits, bond and bank liabilities. All cash and cash equivalents mature or reprise in the short-term, no longer than three months.

Borrowings only bear interest at fixed rates. Cash and cash equivalents and borrowings issued at variable rates expose the Group to cash flow interest rate risk. For the interest rate profile of the Group's interest-bearing financial liabilities refer to note 22.

The Group does not account for any fixed rate borrowings at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

The Group Treasury manages the interest rate risk to reduce the volatility of the financial result as a consequence of interest rate movements. For the decision whether new borrowings shall be arranged at a variable or fixed interest rate, the Group Treasury focuses on an internal longterm benchmark interest rate and considers the amount of cash and cash equivalents held at a variable interest rate. Currently the interest rate exposure is not hedged.

On December 31, 2024, if interest rates had been 50 basis points higher/lower with all other variables held constant, post-tax profit for the year would have been CHF 0.6 million (2023: CHF 0.5 million) higher/lower, mainly as a result of cash positions held at variable rates.

28.4.2 Foreign currency risks

The Group incurs foreign currency risks on sales, purchases and borrowings denominated in a currency other than the functional currency of the respective Group companies. On a consolidated basis, the Group is also exposed to currency fluctuations between the Swiss franc (CHF) and the functional currencies of its Group companies. The two major currencies giving rise to currency risks are the Euro (EUR) and the US dollar (USD).

The Group centralizes its foreign currency exposure in a few locations. The hedging policy of the Group aims to limit the foreign currency risk to a certain percentage of the operating activities (forecast sales and purchases). The Group uses forward exchange contracts to hedge its foreign currency exposure in relation to these future cash flows in foreign currencies. The contracts have terms of up to 18 months.

The Group does not hedge its net investment in foreign entities and the related foreign currency translation of local earnings.

The Group's exposure to foreign currency risk arising on financial instruments denominated in a currency different from the functional currency of the entity holding the instruments is as follows:

	31.12.2023					31.12.2024
	CHF	EUR	USD	Other	CHF	EUR	USD	Other
CHF 1,000
Derivatives	–	–	3,788	57	–	–	(3,942)	(31)

Cash and cash equivalents	362	29,601	7,418	6,124	298	33,319	43,443	9,246
Receivables	–	3,420	2,651	141	–	3,416	2,062	294
Rent and other deposits	–	151	–	–	–	–	–	100
Current financial liabilities	–	–	(613)	–	–	–	(613)	–
Payables and accrued expenses	(20)	(4,992)	(2,493)	(4,181)	–	(389)	(54)	(2,460)
Non-current financial liabilities	–	–	–	–	–	–	–	–
Total net exposure to currency	342	28,180	10,751	2,141	298	36,346	40,896	7,149

On December 31, if the CHF had moved against the USD and EUR with all other variables held constant, post-tax profit for the year would have been (sensitivity analysis based on the net exposure to currency/table above):

CHF 1,000	31.12.2023 higher/(lower)	31.12.2024 higher/(lower)
If CHF had weakened against EUR by 10%	2,589	2,607
If CHF had strengthened against EUR by 10%	(2,589)	(2,607)
If CHF had weakened against USD by 10%1	(8,091)	(4,358)
If CHF had strengthened against USD by 10%1	8,091	4,358

¹ Impact on post-tax profit primarily relate to CHF/USD forwards.

The derivative financial instruments used as economic hedges of foreign currencies are summarized in the table below:

	Fair value			Contract value
	Positive	Negative	Total		Due within
				1 and 90 days	91 and 360 days	1 and 2 years
CHF 1,000
Foreign currency forwards
Sell USD	3,788	–	90,871	22,718	68,153	–
Buy USD	14	–	558	558	–	–
Sell SEK	16	–	847	847	–	–
Sell JPY	20	–	2,092	2,092	–	–
Sell AUD	7	–	488	488	–	–
Balance at December 31, 2023	3,845	–	94,856	26,703	68,153	–

		Fair value			Contract value
	Positive	Negative	Total		Due within
				1 and 90 days	91 and 360 days	1 and 2 years
CHF 1,000
Foreign currency forwards
Sell USD	–	(4,092)	91,637	24,497	67,140	–
Buy USD	150	–	(4,537)	(2,722)	(1,815)	–
Sell DKK	–	(4)	466	466	–	–
Sell JPY	–	(16)	3,238	3,238	–	–
Sell AUD	–	(11)	1,522	1,522	–	–
Balance at December 31, 2024	150	(4,123)	92,326	27,001	65,325	–

28.5 LIQUIDITY RISK

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Group Treasury manages the Group's liquidity to ensure sufficient liquidity to meet all liabilities when due, under both normal and stressed conditions, without facing unacceptable losses or risking damage to the Group's reputation.

It is the Group's target to have a cash reserve or committed credit lines in the amount of 10% of its annual sales budget centralized at Tecan Group Ltd. and Tecan Trading AG. Changes to this target are subject to the Board of Directors' approval. All cash in Tecan Group Ltd. and Tecan Trading AG, which does not count against such a cash reserve, is considered as excess liquidity. Excess liquidity can be invested in instruments such as time deposits, government and corporate bonds, shares of publicly listed companies and capital protected instruments.

Tecan Annual Report 2024 Consolidated financial statements

The following are the contractual maturities of financial liabilities, including interest payments:

	Carrying amount	Contractual cash flows	Between 1 and 90 days	Between 91 and 360 days	Between 1 and 2 years	Over 2 years
CHF 1,000
Derivative financial liabilities	n/a
Non-derivative financial liabilities
Current bank liabilities	6	6	6	–	–	–
Contingent payment	613	613	–	613	–	–
Payables and accrued expenses1	121,597	121,597	90,370	31,227	–	–
Bond	249,784	250,250	–	125	250,125	–
Lease liabilities	66,304	82,869	3,720	10,601	10,867	57,681
Balance at December 31, 2023	438,304	455,336	94,096	42,566	260,992	57,681

Excluding reconciling items (see note 28.2).

CHF 1,000	Carrying amount	Contractual cash flows	Between 1 and 90 days	Between 91 and 360 days	Between 1 and 2 years	Over 2 years
Derivative financial liabilities
Foreign currency forwards	4,123
Outflow		96,863	29,723	67,140	–	–
Inflow		(90,840)	(28,055)	(62,785)	–	–
Non-derivative financial liabilities
Contingent payment	613	613	613	–	–	–
Payables and accrued expenses1	95,262	95,262	74,668	20,594	–	–
Bond	249,923	250,125	–	250,125	–	–
Lease liabilities	71,422	87,481	3,536	10,100	10,796	63,049
Balance at December 31, 2024	421,343	439,504	80,485	285,174	10,796	63,049

Excluding reconciling items (see note 28.2).

Unused lines of credit amounting to CHF 40.0 million (2023: CHF 40.0 million) are available to the Group on December 31, 2024. In addition, the Group has uncommitted lines of credit amounting to CHF 340 million (2023: CHF 390.0 million) to finance potential future business combinations.

29 FAIR VALUE MEASUREMENT AND DISCLOSURES

29.1 FAIR VALUE HIERARCHY

To increase consistency and comparability in fair value measurements and related disclosures, IFRS 13 established a fair value hierarchy that categorizes into three levels the inputs to valuation techniques used to measure their value.

Level 1 inputs	Quoted prices (unadjusted) in active markets for identical assets and liabilities that the Group can access at the measurement date.
Level 2 inputs	Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either direct ly or indirectly.
Level 3 inputs	Unobservable inputs for the asset or liability.

29.2 ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS AFTER INITIAL RECOGNITION

The following table shows the valuation techniques used in the determination of fair values for assets and liabilities measured at fair value on a recurring basis after initial recognition:

Position		Net carrying amount in balance sheet measured at fair value (CHF 1,000)		Data source	Model	Change in fair value recognized in position
	31.12.2023	31.12.2024
Currency forwards	3,845		(3,973) Level 2	Financial data supplier	(Forward rate–[spot rate +/- SWAP points]) * amount in foreign currency	Financial result (FVTPL)
Convertible bonds	3,458		5,444 Level 3	n/a	Value of the straight bond plus value of conversion option	Financial result (FVTPL)
Unquoted equity investment	3,901		2,352 Level 3	n/a	Market sales multiples	Other compre hensive income (FVOCI)
Contingent consideration	(613)		(613) Level 3	n/a	Discounted cash flow method	Other operating result

Instruments with level 3 inputs – details:

	Convertible bonds	Unquoted equity investment
CHF 1,000
Balance at January 1, 2024	3,458	3,901
Acquisition	2,047	17
Transferred to settle a receivable	–	3,501
Bond converted to shares	(381)	381
Change in fair value	–	(5,624)
Translation differences	320	176
Balance at December 31, 2024	5,444	2,352
Thereof current	1,815	–
Thereof non-current	3,629	2,352

Convertible bonds – In addition to the new grants of CHF 2.0 million, an existing bond was extended (CHF 3.5 million). The Group received interest payments of CHF 0.4 million. The fair value is highly dependent on the variable conversion ratio and the underlying share of the issuer.

Unquoted equity investments – The position consists of two investments. The valuation of the investments had to be reduced in 2024 due to negative results and in one case due to lack of access to financial information.

29.3 FAIR VALUE DISCLOSURES FOR FINANCIAL INSTRUMENTS MEASURED AT AMORTIZED COST

The carrying amount of financial instruments measured at amortized costs (see note 28.2) is a reasonable approximation of their fair value due to their short-term nature. Bank loans and the bond are the only exception due to their longterm nature. Their fair values are disclosed in the following table.

Position		Net carrying amount in balance sheet measured at amortized cost (CHF 1,000)		Fair value disclosure (CHF 1,000)		Data source	Model
	31.12.2023	31.12.2024	31.12.2023	31.12.2024
Bond	(249,784)	(249,923)	(243,000)	(248,600) Level 1		Financial data supplier	Market value available at SIX (security symbol TEC21)

30 CONTINGENT LIABILITIES, ENCUMBRANCE OF ASSETS AND OTHER COMMITMENTS

On December 31, 2023 and 2024, the Group had no significant contingent liabilities to third parties, and none of the Group's assets were pledged, assigned or subject to retention of title.

Purchase commitments – In the ordinary course of business, the Group regularly enters relationships with suppliers whereby the Group commits itself to purchase certain minimum quantities of raw materials for the manufacturing of its products to benefit from better pricing conditions and a stable supply. Such commitments reflect normal business operations, are in line with the Group's manufacturing plans and product life cycles and do not exceed current market prices. The Group recognizes a provision for onerous contracts if and to the extent such commitments exceed the Group's expected purchase quantities. On December 31, 2024, the purchase commitments amounted to CHF 169.5 million (2023: CHF 177.8 million).

31 RELATED PARTIES

The Group has a related party relationship with key management personnel (members of the Board of Directors and the Management Board).

The total compensation paid to the key management personnel was:

	2023	2024
CHF 1,000
Short-term employee benefits	6,676	6,022
Post-employment benefits	590	619
Share-based payment1	10,637	2,238

Total compensation	17,903	8,879

¹ See note 9.4 for more details

For further details concerning compensation, please refer to the compensation report. The information reported in this note and the information provided in other parts of the annual report may differ due to different recognition and valuation principles.

32 SUBSEQUENT EVENTS

There were no events after the balance sheet date which would require adjustments to or disclosures in these consolidated financial statements.

Ernst & Young Ltd Maagplatz 1 P.O. Box CH-8010 Zurich

Phone: +41 58 286 31 11 www.ey.com/en_ch

To the General Meeting of Tecan Group Ltd., Männedorf Zurich, 7 March 2025

Report of the statutory auditor

Report on the audit of the consolidated financial statements

Opinion

We have audited the consolidated financial statements of Tecan Group Ltd. and its subsidiaries (the Group), which comprise the consolidated balance sheet as at 31 December 2024, the consolidated statement of profit or loss, the consolidated statement of comprehensive income, the consolidated statement of cash flows, the consolidated statement of changes in equity for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the consolidated financial statements (pages 141 to 192) give a true and fair view of the consolidated financial position of the Group as at 31 December 2024 and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards and comply with Swiss law.

Basis for opinion

We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISA) and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the "Auditor's responsibilities for the audit of the consolidated financial statements" section of our report. We are independent of the Group in accordance with the provisions of Swiss law, together with the requirements of the Swiss audit profession, as well as those of the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the "Auditor's responsibilities for the audit of the consolidated financial statements" section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit

procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the consolidated financial statements.

Revenue recognition

Risk The Group's revenues amounted to CHF 934 million for the year ended 31 December 2024. For goods sold and services rendered, sales are recorded at the time when the customer receives control of the goods or services transferred. Revenue recognition from products with material application and installation work requires a written acceptance by the customer. Revenue from service contracts is recognized pro-rata based on the full contract period. Refer to note 2.7.2 (Accounting and valuation principles: Revenue recognition, contract assets and liabilities) in the consolidated financial statements for further details.

Revenue recognition is significant to our audit as the Group generates revenues from different streams (goods sold and services rendered) and due to the risks that transactions may be recorded in the incorrect period.

Our audit response

Our audit procedures included assessing the application of the Group's revenue recognition policies. We tested a sample of transactions near the year-end and agreed the details of these transactions to underlying documentation, such as the contractual terms, to ensure that revenue has been recognized in the appropriate period and in the appropriate amount. For sales transactions where material application and installation work were required, we evaluated whether written customer acceptance had been received before revenue was recognized.

Our audit procedures did not lead to any reservations concerning the recognition and measurement of revenue.

Carrying value of goodwill

Risk As at 31 December 2024, the Group reported CHF 761 million in goodwill (representing 36.7 % of the Group's total assets and 53.0 % of the shareholder's equity). For purposes of the annual impairment test, goodwill is allocated to a cash-generating unit or to a group of cash-generating units that are expected to benefit from the synergies of the corresponding business combination. The recoverable amount (higher of fair value less costs of disposal and value in use) of the cash-generating unit is compared to its carrying amount. An impairment loss is recognized if the carrying amount of the cashgenerating unit exceeds its recoverable amount. Refer to notes 2.7.11 (Goodwill) and 2.7.12 (Impairment) in the consolidated financial statements for further details.

Due to the significance of the carrying value of goodwill and the complexity and judgment involved in performing the impairment test this matter was considered significant to our audit.

Our audit response

Our audit procedures included understanding the Group's goodwill impairment testing process and the determination of key assumptions.

We evaluated the Group's impairment testing model and key assumptions involving valuation specialists. We further corroborated the Company's key assumptions applied based on internally and externally available evidence and underlying data, including the evaluation of the underlying cash flow projections.

Our audit procedures did not lead to any reservations concerning the carrying value of goodwill.

Income taxes – Accounting for uncertain tax positions

Risk The Group operates in multiple tax jurisdictions that are regulated by various tax laws and is subject to periodic tax audits by local tax authorities. The Group is required to use significant judgment in estimating the appropriate amount to record in respect to uncertain income tax positions. Refer to note 2.2.3 (Income Taxes – general and Pillar Two) in the consolidated financial statements for further details.

The accounting for uncertain income tax positions is significant to our audit due to the complexity and judgment involved in the Group's identification and determination of uncertain income tax positions.

Our audit response

Our audit procedures included evaluating the Group's judgments used in the determination of uncertain income tax positions, involving local and group tax specialists. Our procedures focused on considering the status of past and current tax audits in relevant jurisdictions, analyzing the Group's correspondence with the relevant tax authorities and corroborating the assumptions utilized with supporting evidence.

Our audit procedures did not lead to any reservations concerning to the valuation of uncertain income tax positions.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the consolidated financial statements, the stand-alone financial statements, the compensation report and our auditor's reports thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Board of Directors' responsibilities for the consolidated financial statements

The Board of Directors is responsible for the preparation of the consolidated financial statements, which give a true and fair view in accordance with IFRS Accounting Standards and the provisions of Swiss law, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law, ISA and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

A further description of our responsibilities for the audit of the consolidated financial statements is located on EXPERTsuisse's website at: https://www.expertsuisse.ch/en/audit-report. This description forms an integral part of our report.

Report on other legal and regulatory requirements

In accordance with Art. 728a para. 1 item 3 CO and PS-CH 890, we confirm that an internal control system exists, which has been designed for the preparation of the consolidated financial statements according to the instructions of the Board of Directors.

We recommend that the consolidated financial statements submitted to you be approved.

Ernst & Young Ltd

Licensed audit expert Licensed audit expert (Auditor in charge)

Martin Mattes Dominique Frutiger

BALANCE SHEET OF TECAN GROUP LTD.

ASSETS

	Notes	31.12.2023	31.12.2024
CHF 1,000
Cash and cash equivalents		4,009	455
Other accounts receivable from third parties		488	337
Other accounts receivable from subsidiaries		266	107
Current assets		4,763	899
Investments in subsidiaries	3	361,213	383,751
Non-current loans to subsidiaries		756,720	724,720
Property, plant and equipment		–	2
Non-current assets		1,117,933	1,108,473
Assets		1,122,696	1,109,372

LIABILITIES AND EQUITY

	Notes	31.12.2023	31.12.2024
CHF 1,000
Current portion of bond	4	–	250,000
Current loans from subsidiaries		139,125	143,975
Other accounts payable to third parties		192	253
Other accounts payable to subsidiaries		18	20
Income tax payables		838	782
Accrued expenses		615	458
Current provisions		–	16

Current liabilities		140,788	395,504

Bond	4	250,000	–
Provision for general business risks	5	30,000	30,000
Other non-current provisions		97	28
Non-current liabilities		280,097	30,028
Total liabilities		420,885	425,532
Share capital		1,278	1,283
Legal capital reserve (capital contribution reserve)		455,017	449,730
General legal retained earnings		1,000	1,000
Voluntary retained earnings		244,516	260,761
Treasury shares		–	(28,934)
Shareholders' equity	6	701,811	683,840
Liabilities and equity		1,122,696	1,109,372

INCOME STATEMENT OF TECAN GROUP LTD.

	2023	2024
CHF 1,000
Dividend income from subsidiaries	21,107	30,172
Interest income from third parties	627	17
Interest income from subsidiaries	11,422	11,309
Foreign exchange gains, net	–	126
Operating income	33,156	41,624
Personnel expenses	(1,356)	(1,425)
Other operating expenses	(1,312)	(1,739)
Depreciation of property, plant and equipment	–	(1)
Impairment loss on an investment	–	(550)
Interest expense bond	(125)	(125)
Other financial expenses to third parties	(2)	(26)
Other financial expenses to subsidiaries	(4,217)	(1,905)
Foreign exchange losses, net	(125)	–
Operating expenses	(7,137)	(5,771)
Profit before taxes	26,019	35,853
Income taxes	(848)	(448)
Profit for the period	25,171	35,405

NOTES TO THE FINANCIAL STATEMENTS OF TECAN GROUP LTD.

1 REPORTING ENTITY

Tecan Group Ltd. is a limited company incorporated in Switzerland, whose shares are publicly traded. Tecan Group Ltd.'s registered office is located at Seestrasse 103, 8708 Männedorf, Switzerland.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION

The financial statements of Tecan Group Ltd. (the 'Company') have been prepared in accordance with the provisions on accounting and financial reporting of the Swiss Code of Obligations (32nd title) introduced on January 1, 2013.

Subsidiaries include all legal entities which are directly or indirectly owned and controlled by the Company.

As consolidated financial statements are provided, the Company is exempt from the disclosure of a management report, a cash flow statement and extended information in the notes.

2.2 ACCOUNTING AND VALUATION PRINCIPLES

2.2.1 Investments in subsidiaries

Investments are valued at historical costs less any impairment of value, applying the single-asset-valuation principle.

2.2.2 Loans

Loans are valued at historical costs adjusted for foreign currency translation differences and less any impairment of value.

2.2.3 Bonds

Bonds are valued at nominal value. All transactions costs less the bond premium are recognized immediately in the income statement.

2.2.4 Provisions

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that the outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made.

2.2.5 Treasury shares

Treasury shares are recognized at acquisition cost and deducted from shareholders' equity at the time of acquisition. In case of a resale, the gain or loss incurred is allocated or charged to the voluntary retained earnings.

3 INVESTMENTS IN SUBSIDIARIES

3.1 OVERVIEW (DIRECT AND INDIRECT INVESTMENTS)

The investments in directly and indirectly held subsidiaries are the same for the years ended December 31, 2023 and December 31, 2024.

Company	Registered office	Participation in % (capital and votes)	Currency	Share capital (LC 1,000)	Activities
Tecan Schweiz AG	Männedorf/Zurich (CH)	100 %	CHF	5,000	R/P/D
Tecan Trading AG	Männedorf/Zurich (CH)	100 %	CHF	300	S/D
Tecan Sales Switzerland AG	Männedorf/Zurich (CH)	100 %	CHF	250	D
Tecan Austria GmbH	Grödig/Salzburg (AT)	100 %	EUR	1,460	R/P
Tecan Sales Austria GmbH	Grödig/Salzburg (AT)	100 %	EUR	35	D
Tecan Sales International GmbH	Grödig/Salzburg (AT)	100 %	EUR	35	D
Tecan Landesholding GmbH	Crailsheim/Stuttgart (DE)	100 %	EUR	25	S
• Tecan Deutschland GmbH	Crailsheim/Stuttgart (DE)	100 %	EUR	51	D
• Tecan Software Competence Center GmbH	Mainz-Kastel (DE)	100 %	EUR	103	R
• IBL International GmbH	Hamburg (DE)	100 %	EUR	25	R/P/D
Tecan Benelux BV	Mechelen (BE)	100 %	EUR	37	D
Tecan France S.A.S.	Lyon (FR)	100 %	EUR	2,760	D
Tecan Iberica Instrumentacion S.L.	Barcelona (ES)	100 %	EUR	30	S/D
Tecan Italia Srl.	Milano (IT)	100 %	EUR	77	D
Tecan UK Ltd.	Reading (GB)	100 %	GBP	500	D
Tecan Nordic AB	Stockholm (SE)	100 %	SEK	100	D
Tecan U.S. Group, Inc.	Morrisville, NC (US)	100 %	USD	1,500	S
• Tecan U.S., Inc.	Morrisville, NC (US)	100 %	USD	400	D
• Tecan Systems, Inc.	Morgan Hill, CA (US)	100 %	USD	26	R
• Tecan SP, Inc.	Baldwin Park/Los Angeles, CA (US)	100%	USD	472	R/P/D
• Tecan Genomics, Inc.	Morgan Hill, CA (US)	100%	USD	0	R/P/D
• DCPM, Inc.	Morgan Hill, CA (US)	100%	USD	58	P/D
• Paramit Corp.	Morgan Hill, CA (US)	100%	USD	0	P/D
– Emphysys, Inc.	Boston, MA (US)	100%	USD	0	R
– Paramit Malaysia Sdn. Bhd.	Penang (MY)	100%	USD	5,178	P/D
Tecan Asia (Pte.) Ltd.	Singapore (SG)	100 %	SGD	800	S
Tecan (Shanghai) Laboratory Equipment Co., Ltd.	Shanghai (CN)	100 %	CNY	3,417	D
PMAS Co., Ltd	Ben Cat Town, Binh Duong Province (VN)	100%	VND	10,367,000	P
Tecan Korea Ltd.	Seoul (KR)	100%	KRW	110,000	D
Tecan Japan Co., Ltd.	Kawasaki (JP)	100 %	JPY	125,000	D
Tecan Australia Pty Ltd	Melbourne (AU)	100 %	AUD	0	D

S = services, holding functions, R = research and development, P = production, D = distribution

4 BOND

At year-end 2024, the Company has the following bond outstanding:

	Security symbol	Currency	Nominal value (1,000)	Interest rate	Maturity
Fixed-rate bond	TEC21	CHF	250,000	0,05%	October 6, 2025

5 PROVISION FOR GENERAL BUSINESS RISKS

The provision for general business risks relates to investments in subsidiaries.

<-- PDF CHUNK SEPARATOR -->

6 SHAREHOLDERS' EQUITY

6.1 CHANGES IN SHAREHOLDERS' EQUITY

Balance at December 31, 2024	1,283	449,730	1,000	260,761	(28,934)	683,840

Purchase of treasury shares	–	–	–	–	(28,934)	(28,934)
Dividend paid	–	(19,160)	–	(19,160)	–	(38,320)
New shares issued based on employee participation plans (conditional share capital increase)	5	13,873	–	–	–	13,878
Net profit	–	–	–	35,405	–	35,405
Balance at December 31, 2023	1,278	455,017	1,000	244,516	–	701,811
Dividend paid	–	(18,512)	–	(18,512)	–	(37,024)
New shares issued based on employee participation plans (conditional share capital increase)	5	18,619	–	–	–	18,624
Net profit	–	–	–	25,171	–	25,171
Balance at January 1, 2023	1,273	454,910	1,000	237,857	–	695,040
CHF 1,000		reserve)
	Share capital	Legal capital reserve (capital contribution	General legal retained earnings	Voluntary retained earnings	Treasury shares	Total shareholders' equity

The Company's share capital is CHF 1,282,588.30, consisting of 12,825,883 registered shares with a nominal value of CHF 0.10 each (2023: share capital of CHF 1,278,308.70 consisting of 12,783,087 registered shares with a nominal value of CHF 0.10 each).

The amount of the legal capital reserve (capital contribution reserve) is subject to review and confirmation by the Swiss federal tax authorities.

6.2 CONDITIONAL SHARE CAPITAL

	31.12.2023	31.12.2024
Reserved for employee participation plans
Shares (with a nominal value of CHF 0.10 each)	170,125	127,329
CHF	17,013	12,733
Maximum of employee share options and employee shares outstanding	133,922	153,103
Reserved for future business development
Shares (with a nominal value of CHF 0.10 each)	1,800,000	1,800,000
CHF	180,000	180,000

In 1997, a conditional share capital of CHF 130,000 reserved for employee participation plans was approved. The conditional share capital consisted of 1,300,000 registered shares with a nominal value of CHF 0.10 each. Since 1999, several employee participation plans have been introduced based on this conditional share capital. Between February 2011 and June 2015, the employee participation plans were funded with treasury shares. In 2024 a total of 6,558 options (share option plans) were exercised and 36,238 shares transferred (share plans), increasing the Company's share capital by CHF 4,276.30 and decreasing the Company's conditional share capital by 42,796 shares (2023: a total of 9,488 options were exercised and 42,158 shares transferred, increasing the share capital by CHF 5,164.60 and decreasing the conditional share capital by 51,646 shares). Effective as from January 1, 2025, the Group will fund outstanding employee participation plans with treasury shares.

On April 26, 2006, the Annual General Meeting of Shareholders approved the creation of additional conditional share capital for the purpose of future business development.

6.3 TREASURY SHARES

Shares (each share has a nominal value of CHF 0.10)	31.12.2023	31.12.2024
Balance at January 1	–	–
Purchase	–	100,000

Total	–	100,000

Average price of shares purchased, CHF	–	289.34

7 NUMBER OF EMPLOYEES

31.12.2023		31.12.2024
FTE (full-time equivalent)
Employees – average	1.0	1.0

8 NUMBER OF SHARES AND SHARE OPTIONS

During the year the following number and value of shares were granted:

		2023		2024
	Number	Value (CHF 1,000)	Number	Value (CHF 1,000)
Board of Directors
Shares	937	376	1,208	385
Employees
Shares	1,327	510	1,326	480
Total	2,264	886	2,534	865

The numbers and values disclosed include the maximum amount of matching shares granted. The final amount of matching shares that will vest is not only subject to a service period of three years, but also to the achievement of specific performance targets on the Group level.

9 LIABILITIES FROM LEASE ARRANGEMENTS NOT INCLUDED IN THE BALANCE SHEET

The future minimum lease payments under non-cancellable leases are:

CHF 1,000 31.12.2023	31.12.2024
Liabilities from lease arrangements	5 49

10 GUARANTEES IN FAVOR OF THIRD PARTIES

The total amount of guarantees in favor of its subsidiaries was CHF 89.3 million on December 31, 2024 (December 31, 2023: CHF 94.2 million). In addition, the Company is member of the VAT-group of Tecan Schweiz AG.

11 SUBSEQUENT EVENTS

There were no events subsequent to the balance sheet date which would require adjustments to or disclosures in these financial statements.

12 GROUP RISK MANAGEMENT

(Information according to article 961c of the Swiss Code of Obligations)

12.1 INTRODUCTION

Group risk management is a systematic assessment that addresses all kind of risks posing a potential threat to the business activities of the Group. It is the umbrella process for all other risk management activities throughout the Group. The risk assessment process is coordinated by the CFO; however, the ultimate responsibility is with the Board of Directors.

12.2 RISK ASSESSMENT CYCLE

12.2.1 Initiation of risk assessment

The Group risk assessment cycle takes place every two years unless otherwise mandated by the Board of Directors or by a triggering event. A review during the intermediate year assesses the need for action.

In a first step, the Board of Directors determines the risk acceptance and appoints the risk assessment team. The risk acceptance defines which combinations of risk characteristics (probability and severity of damage) are acceptable and which are not acceptable for the Group. This definition is the basis for the risk classification (see below). The risk assessment team includes representatives from various functions and disciplines such as Finance, Quality & Regulatory, Advisory & Support, Operations and Internal Audit.

The risk assessment team follows the process that is presented below:

12.2.2 Risk identification

The risk assessment team conducts periodic workshops to identify potential risks in the following categories:

Hazard risk
Financial risk
Operational risk
Strategic risk

Furthermore, the risk assessment team considers the results of all other risk management activities within the Group:

Product-related risk management
IT risk management
Business risk management for significant business units and market units
Strategy
Mid-term plan
Budget

12.2.3 Risk estimation and evaluation

Each of the identified risks is estimated and evaluated and finally classified to the following risk categories:

Acceptable risk: No further risk mitigation actions required.
Elevated risk: Further risk mitigation actions recommended. Requires justification and approval by the CFO if no further measures are taken.
Unacceptable risk: Further risk mitigation actions are strongly recommended. Requires justification and approval by the Board of Directors if no further measures are taken.

12.2.4 Risk reduction, risk report and approval

Risk reduction measures must be investigated and implemented for risks that are elevated or unacceptable, unless the risks are explicitly accepted by the risk assessment team.

As a result, the risk assessment team prepares a risk summary report containing all significant risks and measures taken. The final status of the risk assessment is reported to the Executive Management. The Board of Directors finalizes the risk assessment cycle with its approval. Risks remaining unacceptable must each be approved individually.

12.2.5 Risk control

Risk management is a dynamic process and forms a part of all planning and other activities of the Group. Within the process of ongoing risk control, members of the risk assessment team continuously collect information about risk factors and risk-related information. If any new potential elevated or unacceptable risk arises, it is brought immediately to the attention of the CFO.

APPROPRIATION OF AVAILABLE EARNINGS

The Board of Directors proposes to the Annual General Meeting of Shareholders on April 10, 2025, to allocate the voluntary retained earnings as follows:

	31.12.2023 Approved	31.12.2024 Proposed
CHF 1,000 Carried forward from previous year	219,345	225,356

Net profit	25,171	35,405

Available retained earnings	244,516	260,761
Dividend paid as approved by the annual general meeting of shareholders on April 18, 2024: CHF 1.50 per share with a nominal value of CHF 0.10 each (total 12'773'441 shares eligible for dividend)	(19,160)	–
Dividend proposed:
CHF 1.50 per share with a nominal value of CHF 0.10 each
(total 12,725,883 shares eligible for dividend)1	–	(19,089)
Balance to be carried forward	225,356	241,672

The Board of Directors also proposes to the Annual General Meeting of Shareholders to allocate the capital contribution reserve as follows:

	31.12.2023 Approved	31.12.2024 Proposed
CHF 1,000
Carried forward from previous year	436,398	435,857

Conditional share capital increase	18,619	13,873

Available capital contribution reserve	455,017	449,730
Payout as approved by the annual general meeting of shareholders on April 18, 2024:
CHF 1.50 per share with a nominal value of CHF 0.10 each
(total 12,773,441 shares eligible for payout)	(19,160)	–
Payout (exempt form Swiss withholding tax) proposed:
CHF 1.50 per share with a nominal value of CHF 0.10 each
(total 12,725,883 shares eligible for payout)1	–	(19,089)

Balance to be carried forward	435,857	430,641

¹ 1These numbers are based on the outstanding share capital on December 31, 2024. The number of shares eligible for dividend and payout may change due to the repurchase or sale of treasury shares and the issuance of up to 62,614 new shares from the conditional share capital reserved for employee participation plans.

Ernst & Young Ltd Maagplatz 1 P.O. Box CH-8010 Zurich Phone: +41 58 286 31 11 www.ev.com/en ch

To the General Meeting of Tecan Group Ltd., Männedorf

Zurich, 7 March 2025

Report of the statutory auditor

Report on the audit of the financial statements

Opinion

We have audited the financial statements of Tecan Group Ltd. (the Company), which comprise the balance sheet as at 31 December 2024 and the income statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the financial statements (pages 197 to 203) comply with Swiss law and the Company's articles of incorporation.

Basis for opinion

We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Company in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For the matter below, our description of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the "Auditor's responsibilities for the audit of the financial statements" section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matter below, provide the basis for our audit opinion on the financial statements.

Carrying value of investments in subsidiaries

Risk As of 31 December 2024, investments in subsidiaries of the Company amounted to CHF 383.8 million and represent 34.6 % of total assets. Investments in subsidiaries are valued at historical cost less any impairment of value. The Company values investments in subsidiaries individually (single-asset-valuation principle).

Investments in subsidiaries are significant to our audit due to the judgment and estimates involved in the Company's impairment test.

Our audit response

Our audit procedures included understanding the Company's impairment testing process and the determination of key assumptions. We evaluated the Company's impairment testing model and key assumptions, based on internally and externally available evidence and underlying data.

Our audit procedures did not lead to any reservations relating to the valuation of investments in subsidiaries.

Other information

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Board of Directors' responsibilities for the financial statements

The Board of Directors is responsible for the preparation of the financial statements in accordance with the provisions of Swiss law and the Company's articles of incorporation, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on EXPERTsuisse's website at: https://www.expertsuisse.ch/en/audit-report. This description forms an integral part of our report.

Report on other legal and regulatory requirements

In accordance with Art. 728a para. 1 item 3 CO and PS-CH 890, we confirm that an internal control system exists, which has been designed for the preparation of the financial statements according to the instructions of the Board of Directors.

Based on our audit in accordance with Art. 728a para. 1 item 2 CO, we confirm that the proposal of the Board of Directors comply with Swiss law and the Company's articles of incorporation. We recommend that the financial statements submitted to you be approved.

Ernst & Young Ltd

Licensed audit expert Licensed audit expert (Auditor in charge)

Martin Mattes Dominique Frutiger

PERFORMANCE OF THE TECAN SHARE IN 2024

In 2024, the Tecan share declined by 41.0%, reflecting both the need to adjust initial business expectations during the year and the broader challenges faced by the Life Science Tools sector. This sector underperformed the market for the third consecutive year, impacted by extended bioprocessing destocking timelines, a challenging funding environment for biotech companies, tighter pharmaceutical budgets, and macroeconomic pressures in China.

The SPI Extra, Tecan's main benchmark, achieved a gain of 3.8%, while the SMI, covering Swiss blue-chip stocks, rose by 3.5%. In contrast, the US market demonstrated strong performance, with the MSCI World Index increasing by 29% in Swiss francs, driven significantly by the "Magnificent Seven" technology stocks.

SHARE INFORMATION

Listing:	SIX Swiss Exchange
Stock name:	Tecan Group
Security number:	1210019
ISIN:	CH0012100191
Bloomberg:	TECN SW
Reuters:	TECN.S

Tecan Annual Report 2024 Tecan share

SHARE PRICE PERFORMANCE BETWEEN DEC. 31, 2023 AND DEC. 31, 2024

SHARE PRICE PERFORMANCE BETWEEN 2022 AND 2024

Tecan SW Equity SPI Extra

TECAN SHARE

	2022	2023	2024
Numbers of shares issued	12,731,441	12,783,087	12,825,883
Number of treasury shares	–	–	100,000
Number of shares outstanding at December 31	12,731,441	12,783,087	12,725,883
Average number of shares outstanding	12,716,274	12,770,050	12,766,549
Share price at December 31 (CHF)	412.40	343.40	202.60
High (CHF)	515.00	428.00	373.80
Low (CHF)	268.20	256.40	197.50
Average number of traded shares per day1	30,874	32,253	35,742
Average trading volume per day (CHF)1	14,925,418	11,310,160	10,687,930

INFORMATION PER SHARE

	2022	2023	2024
Basic earnings per share (CHF/share)	9.53	10.34	5.3
Adjusted earnings per share (CHF/share)	12.14	12.88	8.08
Shareholders' equity at December 31 (CHF 1,000)	1,357,720	1,348,910	1,435,331
Dividend (CHF)	2.90	3.00	3.002
Dividend yield (%)3	0.70%	0.87%	1.48%

FINANCIAL RATIOS

	2022	2023	2024
Market capitalization (CHF million)4	5,250.4	4,389.7	2,578.3
Price-earnings ratio5	33.97	26.66	25.07

¹ Including off-exchange trading.

² Proposal to the Annual General Meeting of Shareholders on April 10, 2025.

³ At share price as of Dec 31.

⁴ Number of shares outstanding at Dec 31 multiplied with share price as of Dec 31.

⁵ Share price as of Dec 31 divided by adjusted earnings per share.

TECAN GROUP

Corporate Headquarters

Tecan Group Ltd. Seestrasse 103 CH-8708 Männedorf Switzerland T + 41 44 922 81 11 F + 41 44 922 81 12

SALES AND SERVICE LOCATIONS

Australia + 61 3 9647 4100 Austria + 43 62 46 89 330 Belgium + 32 15 42 13 19 China + 86 4008 213 888 Denmark + 46 8 7503 940 France + 33 4 72 76 04 80 Germany + 49 79 51 94 170 Italy + 39 02 92 44 790 Japan + 81 44 556 73 11

Netherlands + 31 18 34 48 17 4 Singapore + 65 644 41 886 South Korea + 82 2 818 3300 Spain + 34 93 595 25 31 Sweden + 46 8 750 39 40 Switzerland + 41 44 922 81 11 UK + 44 118 9300 300 USA + 1 919 361 5200 ROW + 41 44 922 81 11

MANUFACTURING AND DEVELOPMENT SITES

Tecan Switzerland Ltd. Seestrasse 103 CH-8708 Männedorf Switzerland T + 41 44 922 89 22 F + 41 44 922 89 23

Tecan Austria GmbH Untersbergstrasse 1a A-5082 Grödig/ Salzburg, Austria T + 43 62 46 89 330 F + 43 62 46 72 770

Tecan Systems, Inc. 18635 Sutter Blvd. Morgan Hill CA 95037, USA T + 1 408 778 7600 F + 1 408 465 2930

IBL International GmbH Flughafenstr. 52a D-22335 Hamburg Germany T + 49 40 532 891 0 F + 49 40 532 891 11

PMAS Co., Ltd Lot A-2A-CN My Phuoc 3 Indust Ben Cat Town Binh Duong Vietnam

DCPM Inc. 885 Jarvis drive Morgan Hill CA 95037, USA T + 1 408 928 25 10 F + 1 408 928 25 07 Tecan SP, Inc. 14180 Live Oak Ave Baldwin Park CA 91706, USA T + 1 800 352 5128

Tecan Genomics, Inc. 900 Chesapeake Drive Redwood City CA 94063, USA T +1 888 654 6544

Tecan Software Competence Center GmbH Peter Sander Strasse 41a 55252 Mainz-Kastel Germany

F + 49 6134 1814 0

Paramit Corporation 18735 Madrone Parkway Morgan Hill, CA 95037 T + 1 408 785 5600 F + 1 408 782 9991

Emphysys, Inc. 2X Gill Street Woburn, MA 01801-1721 T + 1 339 227 6475

Paramit Malaysia Sdn. Bhd Plot 372, Penang Science Park Lorong Perindustrian Bukit Minyak 21 Taman Perindustrian Bukit Minyak 14100 Simpang Ampat Seberang Perai Tengah Penang, Malaysia T + 604 540 7000 F + 604 540 7111

IMPRINT

Publisher

Tecan Group Ltd. Seestrasse 103 CH-8708 Männedorf Switzerland T + 41 44 922 84 30 F + 41 44 922 88 89 [email protected] www.tecan.com

Project Lead/Editorial Team

Tecan Group Ltd., Männedorf Martin Brändle Senior Vice President, Corporate Communications & Investor Relations

Design Concept and Realization

W4 Marketing AG, Switzerland UP THERE, EVERYWHERE, Sweden

Images

Photography: Oliver Oettli Photography GmbH, Switzerland; Tecan Group Ltd., Switzerland; Arsène Eliott Gaillard; Adobe Stock

All statements in this Annual Report not referring to historical facts are predictions of the future and constitute no guarantee whatsoever of future performance. They are subject to risks and uncertainties including, but not limited to, future global economic conditions, exchange rates, legal regulations, market conditions, activities of competitors and other factors outside the Company's control.

This Annual Report is available in English only.

Tecan Group Ltd. Seestrasse 103 CH-8708 Männedorf Switzerland www.tecan.com

AI assistant

Tecan Group AG — Investor Presentation 2023

991_10-k_2025-03-07_d3762ac3-e679-405b-abda-2d34d505d246.pdf

SCALING HEALTHCARE INNOVATION GLOBALLY.

Dear Stakeholders,

SIMPLIFYING THE PROCESS TO TRANSFORM HEALTHCARE.

STRENGTHENING THE VALUE CHAIN.

Explore further

SIMPLIFYING WORKFLOWS TO EMPOWER DIAGNOSTICS AT SCALE.

Hardware and digital integration

Hardware and functional consumables – solutions that go beyond the system

Reagents for targeted solutions

Collaborative platforms

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ENABLING SEAMLESS INTEGRATION FOR TRANSFORMATIVE RESEARCH.

DELIVERING PRECISION FROM CONCEPT TO CARE.

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LEVERAGING ARTIFICIAL INTELLIGENCE.

FORGING CONNECTIONS. SCALING HEALTHCARE INNOVATION GLOBALLY.

General outlook

2024 AT A GLANCE

KEY FIGURES

FINANCIAL SUMMARY

SALES BY BUSINESS SEGMENTS

SALES BY REGIONS

FINANCIAL RESULTS FULL-YEAR AND SECOND HALF OF 2024

HIGHLIGHTS 2024

ENHANCING OPERATIONAL RESILIENCE THROUGH COST-REDUCTION INITIATIVES, WHILE EXPANDING GLOBAL OPERATIONS AND COMMERCIAL REACH

INNOVATION AND PRODUCT LAUNCHES IN THE LIFE SCIENCES BUSINESS

NEW LAUNCHES AND RICH PROJECT PIPELINE IN THE PARTNERING BUSINESS

FURTHER BUILDING ON SUSTAINABILITY ACTIVITIES

PROPOSAL FOR A STABLE DIVIDEND AT THE ANNUAL GENERAL MEETING

OUTLOOK

EXPRESSION OF THANKS

MARKETS AND STRATEGY

BUSINESS SEGMENTS & MARKETS

TECAN'S PURPOSE: IMPROVING THE LIVES AND HEALTH OF PEOPLE

SCALING LABORATORY WORKFLOWS – EMPOWERED BY AUTOMATION AND DIGITAL SOLUTIONS

UNIQUE POSITION WITH TWO STRONG PILLARS

TECAN'S SYNERGISTIC BUSINESS DIVISIONS

LIFE SCIENCES BUSINESS

PARTNERING BUSINESS

INSTRUMENTS Automating everything from simple manual actions to high throughput workflows

SynergenceTM Customized OEM systems

Cavro® Standard and customized OEM components

Paramit® Contract manufacturing

TECAN'S UNIQUE POSITION TO SCALE SEAMLESSLY FROM RESEARCH TO THE CLINIC

LIFE SCIENCE RESEARCH

LAB DEVELOPED TESTS (LDT)

IN-VITRO DIAGNOSTICS

Life Science Business Partnering Business

Life Sciences Business Partnering Business

TECAN IS ACTIVE IN A CHF 100 BILLION MARKETPLACE

LIFE SCIENCE RESEARCH

SCALING LIFE SCIENCE RESEARCH INNOVATION

IN-VITRO DIAGNOSTICS

SCALING DIAGNOSTIC WORKFLOWS

MEDICAL DEVICES (MEDICAL MECHATRONICS)

SCALING MEDICAL INNOVATION THROUGH PARTNERSHIPS

SPECIAL FOCUS ON THREE APPLICATION AREAS

WE EMPOWER CUSTOMERS, FROM RESEARCH TO THE CLINIC

GENOMICS

FOCUS ON HIGHER GROWTH SEGMENTS IN GENOMICS

GENOMICS

TECAN'S ROLE

PROTEIN ANALYSIS

FOCUS ON HIGH GROWTH SEGMENTS IN PROTEOMICS

PROTEOMICS

MARKET TRENDS

TECAN'S ROLE

CELL AND TISSUE ANALYSIS 9

HIGHER GROWTH SEGMENTS IN CELL & TISSUE

CELL & TISSUE

MARKET TRENDS

TECAN'S ROLE

MEDICAL DEVICES (MEDICAL MECHATRONICS)

FOCUS ON GROWTH APPLICATIONS FOR MEDTECH

TECAN BENEFITTING FROM VARIOUS MEGATRENDS

KEY APPLICATIONS DRIVE RESEARCH AND CLINICAL SOLUTIONS

THE CENTURY OF BIOLOGY CONTINUES

Tecan Group AG Investor Presentation 2023