LPKF Laser & Electronics : Annual Financial Report 2025

About this update from Lpkf Laser & Electronics Se

TO R OW'S LO ANNUAL REPORT 2025 CONTENT COMPANY 3 Group Key Figures 4 LPKF Worldwide 7 SegmentS 7 Revenue and EBIT 8 SEGMENT INFORMATION 8 Letter from the CEO 9 Report of the Supervisory Board 15 Corporate Governance 21 COMBINED MANAGEMENT REPORT 37 Basic Information on the Group 38 Research and Development 50 Report on Economic Position 53 Report on Expected Developments 68 Opportunity and risk report 73 Supplementary Report 87 Corporate Governance Declaration 87 Takeover-Related Disclosures 88 CONSOLIDATED AND ANNUAL FINANCIAL STATEMENTS 92 Consolidated Statement of Comprehensive Income 93 Consolidated Statement of Financial Position 94 Consolidated Statement of Cash Flows 96 Consolidated Statement of Changes in Equity 98 Notes to the Consolidated Financial Statements 100 Responsibility Statement 158 Extract from Individual financial statements - Income Statement 168 Extract from Individual financial statements - Balance Sheet 169 FINANCIAL CALENDAR 171 CONTACT & PUBLISHING INFORMATION 172 ‌COMPANY Group Key Figures and Profile of the LPKF Group ‌GROUP KEY FIGURES LPKF GROUP CONSOLIDATED REVENUE AS OF 31 DECEMBER 2025 in EUR million 2021 2022 2023 2024 2025 Revenue 93.6 123.7 124.3 122.9 115.3 Revenue by region Germany 11.2 9.9 11.7 13.5 9.9 Rest of Europe 19.9 17.7 16.2 15.8 14.9 North America 17.0 42.3 46.6 52.6 49.0 Asia 43.5 51.2 47.8 38.9 40.0 Other 2.0 2.6 2.0 2.1 1.5 Revenue by segment Development 22.1 28.2 29.0 26.2 27.1 Electronics 32.0 31.5 32.7 36.9 35.9 Welding 27.4 25.6 23.1 18.6 24.0 Solar 12.1 38.4 39.5 41.2 28.3 CONSOLIDATED FINANCIAL KEY FIGURES AS OF 31 DECEMBER 2025 in EUR million 2021 2022 2023 2024 2025 EBIT 0.1 6.5 3.7 -2.5 -13.5 EBIT margin (in %) 0.1 5.3 3.0 -2.1 -11.7 Adjusted EBIT n.a. n.a. 4.4 0.1 0.8 Adjusted EBIT margin (%) n.a. n.a. 3.5 0 0.0 Consolidated net profit after non- controlling interest -0.1 1.4 1.8 -4.5 -14.3 Diluted EPS (in EUR) 0.00 0.06 0.07 -0.18 -0.59 Dividend per share (in EUR) 0.00 0.00 0.00 0.00 0,00* ROCE (in %) 0.1 7.1 3.5 -2.5 -16.7 Equity ratio (in %) 69.7 67.9 64.1 69.7 73.2 Investment in property, plant and equipment and intangible assets 8.6 8.2 7.7 7.5 6.6 Free cash flow -0.7 0.3 -11.1 1.9 9.7 Orders on hand 62.6 63.2 58.9 50.9 27 Incoming orders 117.8 124.3 120.1 114.3 91.6 Employees** (Number) 746 740 761 773 727 * Annual General Meeting recommendation ** not including trainees and marginal employees PROFILE OF THE LPKF GROUP Innovative manufacturing technologies for growth markets The LPKF Group (LPKF) is an international technology company specializing in innovative, laser-based manufacturing solutions for demanding industries. The company is a leader in the development of high-tech solutions that address aspects such as precision, energy efficiency and sustainability in particular. In the 50 years of the company's history, LPKF has established leading positions in a number of highly specialized market segments. With its patented LIDE (Laser Induced Deep Etching) technology for high-precision glass processing, LPKF is tackling a key need in the semiconductor industry and consistently expanding its strong position with a growing portfolio of solutions. Advanced packaging with glass The semiconductor industry is facing a critical challenge: miniaturization is reaching its physical limits, Moore's Law* is losing its validity and traditional approaches are no longer sufficient to meet the ever-increasing demands of next-generation computing and artificial intelligence. Modern concepts such as 3D packaging and chiplet architectures make optimum use of the available space. Glass as an interposer or carrier material opens up new possibilities: highly complex chips can be made more powerful and can be produced more cost-efficiently - a crucial lever for the high-performance computing of the future. With LIDE, LPKF has developed a key process that enables defect-free, high-precision processing of glass substrates. The majority of the relevant players in the semiconductor market are already using this technology in development and qualification; the breakthrough to mass production is the next milestone. The use of glass in semiconductor packaging brings with it new process requirements in a high-volume market. LPKF is using the market and technology insights gained with LIDE to expand its portfolio along the value chain in a targeted manner and to position itself in the medium term with solutions for optical data transmission (co-packaged optics). Core business As a high-tech mechanical engineering company, LPKF develops high-precision, scalable manufacturing processes for various applications. These include: PCB processing in the electronics market the structuring of thin-film solar cells laser welding of components for consumer electronics, medical technology and the automotive industry Rapid PCB prototyping as an in-house process for the rapid production of PCB prototypes, which is used by industrial customers and research institutes worldwide. Thanks to the decades of experience it has gained, LPKF has a deep understanding of its customers' requirements. At the same time, the company is driving technological progress with a high level of innovation and regularly sets new standards in its target markets. Global network and presence The LPKF Group is headquartered in Garbsen near Hanover in Germany. The company has 8 subsidiaries in Europe, Asia and North America and a presence in more than 60 countries. Around 700 employees worldwide form the basis for the company's proximity to its customers, its innovative strength and its reliable implementation of complex projects. A global service network ensures that customer systems can be operated with high availability throughout their entire life cycle. The shares of LPKF Laser & Electronics SE are listed on the Prime Standard segment of the Frankfurt Stock Exchange (Deutsche Börse). * Moore's Law describes the observation that, over many years, the number of transistors on a microchip - and therefore the computing power - has doubled approximately every two years. ‌LPKF WORLDWIDE ‌SEGMENTS DEVELOPMENT ELECTRONICS Systems for printed circuit board development and research WELDING Systems for electronics production and the manufacture of glass components SOLAR Systems for plastic welding Systems for the production of solar cells and for laser transfer printing ‌REVENUE AND EBIT in EUR million 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 -2.5 4.0 -13.5 3.7 0.1 -6.8 6.5 7.5 6.8 19.2 93.6 96.2 91.1 115.3 123.7 124.3 122.9 140.0 Revenue EBIT 120.0 102.1 ‌SEGMENT INFORMATION 1 January - 31 December 2025 REVENUE BY SEGMENTS REVENUE BY REGION Germany 9% Asia 35% Europe (without Germany) 13% Electronics 30% Development 24% Other 1% North America 42% Solar 25% Welding 21% ‌LETTER FROM THE CEO Garbsen, 25 March 2026 DEAR SHAREHOLDERS, The past financial year was once again characterized by considerable challenges for LPKF. At the same time, however, we also made important progress in strategic growth areas, thereby laying the foundations for more profitable development in the future. Although we did not achieve our original financial targets, we were able to meet our most recently adjusted forecast. We see this development as a clear mandate to further sharpen our product portfolio and our operational positioning. LPKF was particularly affected by US tariffs, increasing protectionism, and the resulting global economic uncertainty. Many of our customers have postponed or reassessed their investment decisions, which has had a direct impact on our incoming orders. There was also a fundamental change in technology in the solar sector that is currently slowing down our customers' propensity to invest but will open up new opportunities in the medium term. This makes it all the more important that we have made substantial progress in other areas. In the Semiconductor segment, we have succeeded in convincing a significant number of leading manufacturers to adopt our advanced glass packaging solutions and in appreciably strengthening our position in this strategically important industry. These successes confirm LPKF's technological relevance and lay an important foundation for future growth. At the same time, we initiated significant changes at the operational level last year with the North Star project under the leadership of our CFO Peter Mümmler. The aim is to achieve a sustainable improvement in our profitability by reducing our structural costs. We are streamlining our organization, focusing our resources on the most attractive growth markets, and increasing the efficiency of our processes. These steps are consistent, occasionally painful, but necessary to make LPKF more resilient and competitive. Business performance in 2025 in figures In the 2025 financial year, the LPKF Group generated revenue of EUR 115.3 million, down 6.2% on the previous year. Adjusted EBIT (earnings before interest and taxes) increased from EUR 0.1 million in the previous year to EUR 0.8 million. As in the previous year, the adjusted EBIT margin was 0%. At EUR 91.6 million, incoming orders in the reporting period were 19.9% below the previous year's level. At EUR 27.0 million, the order backlog at the end of the year was EUR 23.9 million below the previous year's figure. The overall order situation is particularly affected by the lack of major orders in the Solar segment. Segment performance ADVANCED PACKAGING In the semiconductor market, the transformation of the value chain towards glass-based substrates and glass TGVs is being implemented step by step. Driven by the megatrend of "next-generation computing" with exponentially growing data volumes, AI applications, and increasing demands for energy-efficient computing power, leading chip manufacturers and their suppliers are increasingly turning to glass substrates; the entire supply chain is undergoing a profound transformation process. For many years, we have anticipated that glass, as a superior material, will fundamentally change the architecture of high-performance chips and open up new value creation potential in advanced packaging - and that we will play a key role in this with our LIDE technology. It is now clear that the transformation to glass is no longer just our own expectation, but is being strategically driven by all relevant players in the semiconductor market; new statements in the trade press every week confirm this trend and underline the momentum of this emerging segment. In this environment, our LIDE technology is a recognized and proven key technology for advanced packaging: The LIDE process is in use by customers and has proven itself as a high-precision, crack-free processing solution for glass, which is reflected in a growing number of installed systems and pilot lines. The signs of a breakthrough for glass in advanced packaging are thus becoming increasingly clear - from the perspective of our shareholders, the question is no longer whether this change will take place, but only when it will occur and how we can leverage our strong positioning with LIDE to participate in this development in the long term. In this important market, we will no longer limit ourselves to covering just a single process step in the future - our technological expertise extends far beyond that. We are therefore specifically expanding our offering to include complementary process technologies, such as the singulation of glass-based packages and laser-based bonding of multilayer glass stacks. This will strengthen our role as a key partner to our customers and consistently expand our strategic position in the market. And we are looking even further ahead: LPKF is working on the integration of co-packaged optics (CPO) on glass substrates-a forward-looking application with high relevance for future semiconductor generations. With this technology, optical components are integrated directly into the chip housing, replacing classic electrical data connections with significantly faster and more energy-efficient optical links. Glass substrates play a central role in this: in addition to their superior electrical properties and high stability, they also perform the new optical tasks of wave guidance and beam shaping. LPKF is positioning itself as a strategic partner in this emerging market in the advanced packaging sector with a range of new technologies. We are thus actively working to establish packaging architectures. The protection of our intellectual property is a top priority for LPKF. In addition to the successful confirmation of our property rights in Europe and Korea, we are currently taking active measures against patent infringements in China and have initiated legal proceedings against a patent infringer there. Our goal is to consistently prevent the unauthorized use of our technology and to ensure that products manufactured with such imitation technologies do not gain market access outside of China. In the display area, we are working with a leading global display and semiconductor manufacturer. This is an important proof of concept for us and a first step toward series production of glass displays. At present, it is not possible to make any reliable statements about the timing and dynamics of a possible ramp-up to volume production; we are monitoring the situation at our partner and in the market very carefully. CORE BUSINESS The 2025 financial year saw a positive performance in the Development segment overall. Business was particularly dynamic in North America in the first nine months, while incoming orders from Asia remained rather subdued. The government shutdown in the US from the beginning of October to the middle of November 2025 had a noticeable negative impact on business performance in the fourth quarter. Against the backdrop of an expected increase in government R&D budgets in the defense sector, we are looking ahead with confidence in this environment. Institutes and research facilities worldwide are financed by government funding, among other fundings. Despite individual geopolitical challenges, we expect only a minor impact on investment behavior in the current financial year, although we continue to monitor this very closely, particularly with regard to the US. In the Electronics segment, we bring together all solutions for the series production of electronic modules, such as the laser cutting of printed circuit boards (PCBs) and the manufacture of high-precision solder paste stencils. The surface mount technology (SMT) market was challenging for both these sectors in 2025. The effects of the US tariff policy were clearly felt - less in the US market for LPKF, but primarily in other regions of the world that were indirectly affected by the tariffs. Important customer projects were canceled or postponed as a result. The increased uncertainty led to a noticeable reluctance to invest, particularly in the second quarter. The service business was also clearly impacted by these effects. Overall, business with systems for cutting PCBs developed positively in the past financial year. With the CuttingMaster 2000, we have a technologically outstanding laser system whose performance is clearly superior to that of conventional technologies for separating PCBs. Against this backdrop, more and more electronics manufacturers are turning to laser technology, and we see considerable growth potential in this market. Within the Group, the Welding segment continues to be most affected by the persistently weak performance of the automotive industry. In the 2025 financial year, however, we succeeded in establishing a successful business in this area with welding systems for consumer electronics applications. Incoming orders in the reporting period were significantly higher than in the previous year. We were also able to acquire new customer projects in smart robotics applications, which provide additional impetus for our business. The positive effects that have been generated by our increased focus on the medical technology and consumer electronics markets confirm our strategic orientation. Meanwhile, the automotive market will remain an important sales area for plastic welding in the future. We have numerous long-standing customers in this market and will continue to provide them with the best possible service and support. At the same time, there are currently no signs of a fundamental recovery in the automotive industry that could lead to new growth in plastic welding in the short term. As part of the North Star project, we are implementing structural changes at the Fürth site to ensure our sustainable competitiveness with appropriate profitability. This also includes bundling production activities at the Suhl site as part of a service agreement. In the Solar segment, revenue in the first half of 2025 continued to develop in line with planning, driven by major orders from the previous financial year. Incoming orders in the new machine business, however, remained noticeably below expectations during this period as a result of the global economic uncertainties, which was partially offset by a strong spare parts and service business. In China in particular, the market environment is challenging at the moment, as local competition continues to intensify. In response to this, we have developed the Allegro ESSENTIAL, a new basic system with reduced investment costs that is tailored to the specific, often lower requirements of many Chinese customers. However, the key challenge for our solar business is the impending technological change in the field of solar modules. A marked reluctance to invest in high-volume systems can be observed worldwide, as the market expects a transition to perovskite coatings. As long as it is unclear when and to what extent this technology will become established, the framework conditions for investment remain uncertain. At the same time, a breakthrough in perovskite technology would open up significant opportunities for LPKF, as the company has innovative solutions and in-depth expertise to operate successfully in this potential growth segment. We have brought our own activities in the ARRALYZE area to an orderly end. We remain convinced of the innovative strength and high performance of our solution for single-cell analysis. At the same time, it has become clear that the barriers to market entry in the biotechnology sector - especially for a new provider in this segment - are substantial. Against this backdrop, the Management Board is specifically examining options for the sale of ARRALYZE to an appropriate partner that can optimally integrate the product into its core business and fully exploit the market potential of ARRALYZE. Strategic orientation In the 50 years of its existence, LPKF has shown that, thanks to its innovative strength and in-depth technological expertise, the company can displace established process technologies and achieve leading positions in specialized applications. We are now directing our strategic focus toward significantly larger market segments with greater scaling and growth potential. In the semiconductor market, we will expand our excellent market position, particularly in the advanced packaging segment with glass based on LIDE technology, and tap into further growth through additional process steps along the value chain and prospects in the area of co-packaged optics. In parallel, we will continue to profitably develop our established business areas (Industrial Solutions) - from PCB processing and the structuring of thin-film solar cells to laser welding and rapid PCB prototyping. In launching our North Star program in September 2025, we are pursuing a clear goal. We want to achieve a double-digit EBIT margin by 2028 to ensure the sustainable financing of our business model, our innovative strength, and our resilience to economic fluctuations. As part of North Star, we are implementing a comprehensive efficiency and structural program, which includes personnel measures and the reduction of selected cost items. These decisions are drastic, but in our view they are absolutely necessary in order to achieve a sustainable improvement in profitability, rebuild the financial reserves the company needs, and continue to reliably finance strategic investments in research and development. We are firmly convinced that, by consistently implementing the North Star program, we will achieve the necessary turnaround and return LPKF to a profitable, growth-oriented course. As part of North Star, we have also redrafted and extended the syndicated loan agreement with our financing banks up to 2028, thus ensuring that LPKF's transformation is solidly financed. The core of our strategy remains the ongoing strengthening of our capacity for innovation and the consistent alignment of the organization with our customers' needs. Our broad positioning in various markets and regions reduces our dependence on individual industry cycles, increases our resilience, and creates the basis for positioning LPKF profitably and securely for the long term. Outlook The current economic conditions pose considerable challenges for LPKF. As an export-oriented technology company, we are directly and indirectly affected by the ongoing customs issues and geopolitical tensions through our customers. The experiences of recent years also make it clear that we are in an era of permanent volatility and cannot rely on global crises disappearing in the short term. In view of the current high level of uncertainty in the economic and geopolitical environment, including the risk of war and fragile supply chains, and assuming a significantly lower sales volume in the solar segment, we expect consolidated sales of EUR 105 to 120 million and an adjusted EBIT margin of between -3.0% and 4.5% for the 2026 financial year. Potential high-volume orders from the advanced packaging sector are not included in this forecast, as the timing of the market-expected ramp-up is determined not by the LIDE process provided by LPKF, but by the qualification of downstream process steps. The Management Board is confident about the medium-term development of the LPKF Group. While our segments are currently developing differently, our goal remains clear: we are aiming for a sustainable double-digit EBIT margin in 2028 in the Group. With LIDE and the expansion of the product portfolio, we see a very good strategic position and great potential for growth in the semiconductor market in particular. Our SMT area and Rapid PCB Prototyping also offer very solid growth prospects. Despite the current weakness in orders in the solar business, we see the transition to perovskite technology as a promising growth area with considerable opportunities for LPKF. Following the strategic realignment in plastic welding, we also expect long-term profitable growth in this segment. To position the LPKF Group as resilient and competitive in the long term, it is first necessary to make significant structural adjustments, which means that no significant growth impetus can be expected in the short term in the current phase of economic uncertainty. Ladies and gentlemen, 2026 marks a special milestone for LPKF: it was 50 years ago this year that a 41-year-old civil engineer and passionate hobbyist in Hanover came up with the idea of the L eiter P latten K opier F räse (PCB copy milling machine), a mechanical device for manufacturing PCB prototypes. In doing so, Jürgen Seebach laid the foundations for the high-tech company we are today. Our journey from this first, improvised solution to becoming a global and, in many areas, leading technology supplier for electronics, semiconductors, solar, and other fields of the future is a source of gratitude and pride for us. Our special respect goes to all the employees, managers, Management Board members, and Supervisory Board members who, since LPKF was founded, have built and shaped the company through their dedication and innovative spirit. In this special year, we want to concentrate all our efforts on making LPKF resilient and profitable for the long term. On behalf of the Management Board, I would like to thank our employees at all our locations for their commitment in challenging times and you, our shareholders, for your continued support and trust. With kind regards, Dr. Klaus Fiedler Chief Executive Officer ‌REPORT OF THE SUPERVISORY BOARD DEAR SHAREHOLDERS, The 2025 financial year was once again characterized by a challenging and uncertain market environment for LPKF Laser & Electronics SE (LPKF SE) and the LPKF Group (LPKF). The original financial targets were not achieved. The key factor here was the ongoing geopolitical and trade tensions and the resulting reluctance among customers to invest. This led to delays in incoming orders and project decisions in several segments and had a negative impact on the short-term sales performance. However, the most recently revised forecast was met. At the same time, there was a noticeable stabilization in operations over the course of the financial year. This development confirms the effectiveness of the measures that have been introduced in recent years to control costs and increase efficiency, even if they were not yet able to offset the external pressures in full in the reporting year. The Supervisory Board closely monitored the company's performance in the 2025 financial year and continuously supervised and advised the Management Board in its management of the company in accordance with the law, the articles of association and the rules of procedure. The Management Board informed the Supervisory Board and its committees regularly, promptly and comprehensively in written and verbal form about the economic situation, business performance, the financial position, assets and liabilities and results of operations, the risk situation and key strategic and operational issues. Deviations from the approved plans were explained in detail and discussed together. A particular focus of the Supervisory Board's work in the reporting year was the sustainable improvement of profitability and the structural resilience of the business model. The company-wide North Star cost and transformation program was initiated against this background. The aim of the program is to permanently lower the cost base, minimize organizational complexity and significantly reduce the dependence of earnings on short-term fluctuations in sales. The Supervisory Board rigorously monitored and supervised the design, prioritization and implementation of the measures. The first effects can already be seen; the full contribution to earnings is expected to be realized only in the coming financial years. At the same time, the company's strategic positioning was systematically developed and refined. This involved a deliberate move away from the previous focus on market leadership in smaller niche markets with a greater dependence on individual customer products towards technologies with broader applicability. The Supervisory Board believes that LPKF's technological competitiveness remains a key value driver. This is reflected both in the ongoing development of established product lines and in key technologies such as LIDE (Laser Induced Deep Etching), which open up access to attractive volume markets in the semiconductor and display industry and form the basis for scalable, high-margin growth. The cooperation within the Supervisory Board and between the Supervisory Board and the Management Board was again characterized by intensive, open and constructive exchanges in the reporting year. The Supervisory Board and its committees met regularly - also without the Management Board in attendance. The chair of the Supervisory Board also maintained a continuous dialogue with the Management Board and its chair in particular. Peter Mümmler took up his position as Chief Financial Officer on 1 April 2025 and has since been responsible for the Finance, Controlling, Digital & IT, Purchasing and Legal & Compliance divisions. The Supervisory Board would like to thank the Management Board and the entire management team for their strong commitment to consistently driving forward the transformation, innovation and strategic development of LPKF in a persistently challenging economic environment. We would also like to thank all of the company's employees for their commitment, solidarity and willingness to embrace change. As always, the interests of the workforce were constructively represented by the works councils, and we expressly recognize here the support they have provided for the company's transformation initiatives. Special thanks go to my colleagues on the Supervisory Board for their active participation and high level of commitment, especially in the committees. Under the leadership of the respective chairs, the committees carefully analyzed key strategic, financial, operational and organizational issues and provided well-founded recommendations to the Supervisory Board and the Management Board. Finally, we would like to thank our shareholders for their continued support, patience and trust in LPKF Laser & Electronics SE. Even if no significant market recovery is expected in the short term, the Supervisory Board believes that the company is now structurally better positioned than it was a year ago to realize profitable growth again in the medium term and create sustainable added value. Key topics addressed by the Supervisory Board In the 2025 financial year, the Supervisory Board devoted intensive attention to the economic situation, strategic development and operating performance of the LPKF Group at nine ordinary meetings and in additional dialogue formats as required. Seven of these meetings were held in person and two in virtual form via video conference. The Supervisory Board's deliberations were based on regular and timely written reports submitted by the Management Board, which were explained and discussed in detail at the meetings. Mr. Richard attended three meetings until his departure on 4 June 2025. Mr. Owsianowski attended six meetings following his election to the Supervisory Board by the Annual General Meeting on 4 June 2025. The other members of the Supervisory Board attended all nine meetings. All the meetings focused on the current business performance, the situation in the key sales markets and the short, medium and long-term corporate planning. The Supervisory Board was regularly informed about the development of sales, earnings and liquidity, the order situation and any significant deviations from the planning and subjected these to critical scrutiny. Particular attention was paid to ensuring the company's financial stability and strengthening its earning power. Another focus of the discussions was the company's strategic orientation. The Supervisory Board gave extensive consideration to LPKF's technological positioning, the further development of the product and solution portfolios and the target markets addressed. Both growth opportunities and the associated risks were discussed and included in the strategic decisions. Against the backdrop of the challenging market environment, the Supervisory Board also examined in detail the plans for cost reduction and structural adjustment of the company presented by the Management Board in the reporting year. The conception, prioritization and implementation of the company-wide North Star program formed a central focus of the discussions. The Supervisory Board regularly reviewed the progress of the measures, their financial impact and the organizational and procedural changes and provided the Management Board with close support in their implementation. The Supervisory Board also dealt with issues of corporate governance, Management Board remuneration, the efficiency of its own work and the further development of the risk and compliance system. The target achievement of the members of the Management Board was reviewed and evaluated on the basis of clearly defined financial and non-financial criteria. Committee work of the Supervisory Board In order to perform its duties efficiently, the Supervisory Board again formed committees in the 2025 financial year to prepare and supplement the work of the full board. The composition of the committees and their responsibilities are presented in the corporate governance statement. The committees carefully prepared resolutions for the Supervisory Board and passed independent resolutions within the scope of the competences assigned to them. The chairs regularly reported on the contents of the committee meetings at the Supervisory Board meetings. All members of the Supervisory Board received the minutes of the committees' resolutions. The Audit, Risk and ESG Committee held seven meetings in the reporting year, in which it focused on the monitoring of the accounting, the financial and liquidity development, the effectiveness of the internal control system, the risk management system, the internal auditing and the compliance structures. Five of these meetings were held in person and two in virtual form via video conference. The committee also devoted detailed attention to the implementation of the North Star program, in particular its financial impact and the sustainable improvement of the cost structure. The Audit, Risk and ESG Committee maintained a regular dialogue with the auditor without the involvement of the Management Board and convinced itself of the auditor's independence. In the reporting year, the Audit, Risk and ESG Committee was always informed immediately by the auditor of all findings and events of significance for its duties that came to its attention during the audit. All the committee members attended all seven meetings. The Remuneration and Nomination Committee held four meetings in the reporting year to deal in particular with matters relating to the Management Board, including issues involving Management Board remuneration, target agreements and long-term incentive systems as well as the further development of the Supervisory Board's qualification matrix and the organization of the selection process for filling vacancies on the Supervisory Board in 2026. These meetings were held in virtual form via video conference. All the committee members attended all four meetings. On 22 July 2025, the Supervisory Board decided to dissolve the Strategy Committee and to deal with strategic issues within the full board in future. Up to this point, the Strategy Committee had held three meetings to discuss the further development of the corporate strategy and its operationalization. These meetings were held in person. All the committee members attended all three meetings. The Supervisory Board is convinced that the committee work in the reporting year made a significant contribution to the quality of the deliberations and decisions of the full board. Corporate governance and declaration of compliance The Supervisory Board continued to focus intensively on the implementation of corporate governance standards in 2025. LPKF Laser & Electronics SE's corporate governance is outlined in detail in the Corporate Governance Declaration. The Management Board and Supervisory Board issued the current annual declaration of compliance in accordance with Section 161 AktG on 18 February 2025. This declaration of compliance was updated on 4 June 2025. The new declaration from 10 February 2026 and the previous declarations are publicly available online at https://www.lpkf.com/en/investor-relations/corporate-governance . No conflicts of interest arose in the year under review. The members of the Supervisory Board are independently responsible for completing the training and educational measures necessary for performing their roles. This includes matters such as changes to the legal framework or accounting standards and emerging tools and technologies. Where necessary, internal information events are also offered to provide targeted further training. Ms. Siebert took part in external training courses on new regulatory developments for Supervisory Board activities with a focus on corporate governance, cybersecurity and artificial intelligence in the boardroom as well as internal compliance and IT security training. Ms. Wittenberg also took part in external training courses on new regulatory developments for Supervisory Board activities with a focus on corporate governance, cybersecurity and artificial intelligence in the boardroom. She also attended training courses on the Financial Reporting Update 2025 and corporate governance topics focusing on innovation, entrepreneurship and technology and took part in internal compliance and IT security training. Dr. Rothweiler, Prof. Overmeyer and Mr. Owsianowski also completed the internal compliance and IT security training. Sustainability Sustainability is an important component of the corporate strategy. The Audit, Risk and ESG Committee and the Supervisory Board are constructively supporting these activities and are pleased to see the progress being made in various areas which are presented in the sustainability report. The sustainability report of the LPKF Group for the financial year 2025 was reviewed in advance by the Audit, Risk and ESG Committee and discussed and approved by the Supervisory Board at its meeting on 24 March 2026. You can find the sustainability report for the 2025 financial year at https://www.lpkf.com/en/company/sustainability . Annual and consolidated financial statements The annual financial statements of LPKF Laser & Electronics SE as at 31 December 2025 prepared by the Management Board, the combined management report for the 2025 financial year and the consolidated financial statements, including the combined Group management report, were audited by the auditor appointed by the Annual General Meeting. The auditor has issued an unqualified audit opinion in each case. The financial reporting documents, the Management Board's proposal for the appropriation of the net retained profits and the auditor's reports were submitted to the Supervisory Board in a timely manner. They were first discussed in detail by the Audit, Risk and ESG Committee and then examined and discussed in detail by the Supervisory Board at its meeting to review the financial statements, which the auditor's representatives also attended. The auditors reported on the key findings of their audit and were available to answer questions on the net assets, financial position and results of operations of the company and the Group. Following its own review and on the basis of the Audit Committee's reports, the Supervisory Board raised no objections to the annual financial statements, the consolidated financial statements or the combined management reports for the LPKF Group and the LPKF SE. The Supervisory Board therefore agreed with the results of the audit and adopted the annual financial statements of LPKF Laser & Electronics SE and the consolidated financial statements for the 2025 financial year prepared by the Management Board. The annual financial statements are thus approved in accordance with Section 172 AktG. The Supervisory Board also examined the Management Board's proposal for the appropriation of the net retained profits and approved it after a detailed discussion. In particular, the company's liquidity situation, planned investments and anticipated business development were taken into account. In the opinion of the Supervisory Board, the proposal is in the interests of the company and its shareholders. Garbsen, March 2026 For the Supervisory Board Alexa Siebert Chair ‌CORPORATE GOVERNANCE LONG-TERM VALUE CREATION AND EFFICIENT COOPERATION The principles of responsible and good corporate governance guide the actions of the LPKF Group's management and supervisory bodies. The statements apply to LPKF Laser & Electronics SE (hereinafter also referred to as "LPKF SE") and its Group companies, unless otherwise stated below. This section contains the corporate governance statement pursuant to Sections 289f and 315d of the German Commercial Code (Handelsgesetzbuch - HGB). The corporate governance statement for the company and the Group is an integral part of the combined management and Group management report. The Management Board and the Supervisory Board also report on corporate governance at LPKF SE in this section. CORPORATE GOVERNANCE STATEMENT Declaration of compliance in accordance with Section 161 AktG of 10 February 2026: The Management Board and the Supervisory Board declare that, since its last declaration of compliance dated 18 February 2025 and the updated version dated 4 June 2025, LPKF Laser & Electronics SE (hereinafter "LPKF SE") has complied with all recommendations of the German Corporate Governance Code (hereinafter the "Code") as amended on 28 April 2022 and published by the Federal Ministry of Justice in the official section of the Federal Gazette, with the following exception, and will comply with them in full in the future: Recommendation on the chairmanship of the Audit Committee (Code section D.3 sentence 5) The Supervisory Board has formed an Audit, Risk and ESG Committee, which fulfils all but one of the Code's recommendations regarding the Audit Committee. The only deviation is from the recommendation that the chair of the Supervisory Board shall not chair the Audit Committee as well. Alexa Siebert has been chair of the Audit, Risk and ESG Committee since 20 July 2023. In the opinion of the Supervisory Board, she fulfils the requirements regarding the special professional expertise that the chair of the Audit Committee shall have due to her professional background and practical experience. In order to ensure the continuity and efficiency of the monitoring work, the full Supervisory Board considers it appropriate, in deviation from recommendation D.3 sentence 5 of the GCGC, for the chair of the Supervisory Board to continue to chair the Audit, Risk and ESG Committee. The Supervisory Board is confident in its belief that the workload associated with chairing the Audit, Risk and ESG Committee can be handled by the chair of the Supervisory Board. The deviation is therefore in the best interests of the company. Garbsen, 10 February 2026 For the Supervisory Board For the Management Board ALEXA SIEBERT DR. KLAUS FIEDLER REMUNERATION REPORT AND REMUNERATION SYSTEMS The remuneration report for the 2025 financial year, the auditor's report on the audit of the remuneration report and the remuneration system applicable to the members of the Management Board and Supervisory Board are available on the LPKF Laser & Electronics SE website at https://www.lpkf.com/en/investor-relations/corporate-governance . DISCLOSURES ON RELEVANT CORPORATE GOVERNANCE PRACTICES OPPORTUNITY AND RISK MANAGEMENT The Management Board of LPKF SE has set up a Group-wide reporting and control system to record, assess, monitor and manage opportunities and risks. The internal control system and the opportunity and risk management system also cover sustainability objectives, including processes and systems for collecting and processing sustainability data, and incorporate a compliance management system. The system is continuously evolving and adapted to changing conditions and is periodically reviewed by the auditor. The Management Board regularly informs the Supervisory Board, and more specifically its Audit, Risk and ESG Committee, about existing risks and their development. Details on opportunity and risk management in the LPKF Group are presented in the opportunity and risk report as part of the Group management report. This contains the report on the entire internal control and risk management system, including a statement on the appropriateness and effectiveness of these systems. COMPLIANCE - PRINCIPLES OF BUSINESS ACTIVITIES AND PRACTICES Sustainable economic, environmental and social action that complies with applicable law is an essential element of LPKF SE's corporate culture. This includes trust, respect and integrity in our interactions with each other. It is expressed in exemplary conduct towards employees, business partners, shareholders and the public. LPKF SE defines compliance as adherence to the law, the Articles of Association and internal regulations as well as voluntary commitments. LPKF SE attaches particular importance to raising the awareness of compliance among all employees in the Group. Compliance is anchored in internal processes and a Group-wide compliance structure has been established. Employee training is provided on the Group-wide Compliance Code and on general compliance issues. This serves to prevent compliance violations throughout the Group, minimize risks and identify potential breaches early and efficiently. Clearly defined and transparently communicated reporting channels for internal and external stakeholders help to ensure that potential irregularities can be reported confidentially and, if desired, anonymously. LPKF SE provides internal and external whistleblowers with channels for contacting LPKF SE, which are listed on the website ( https://www.lpkf.com/en/company/compliance-management ). These channels can be used to contact both the Chief Compliance Officer and an independent attorney of trust in complete confidence if required. Other internal points of contact for employees are communicated in the Compliance Code, on the intranet and on noticeboards within the company. WORKING METHODS AND COMPOSITION OF THE MANAGEMENT BOARD AND SUPERVISORY BOARD AND THEIR COMMITTEES LPKF SE is a publicly listed European Company (Societas Europaea, SE) and has a dual management system comprising a Management Board and a Supervisory Board. The Management Board and the Supervisory Board of LPKF SE work closely together in managing and monitoring the company. MANAGEMENT BOARD The Management Board of LPKF SE consists of two members, with one acting as Chief Executive Officer (CEO). The company's Management Board consisted of just one person at times during the 2025 financial year. The specific composition of the Management Board in the 2025 financial year and the disclosures pursuant to Section 285 no. 10 HGB can be found in the combined management and Group management report in this Annual Report. As the management body, it is the responsibility of its members to manage the company's business with the aim of creating long-term sustainable value and in the company's best interests. The Management Board systematically identifies and assesses the risks and opportunities associated with social and environmental factors as well as the social and environmental impacts of LPKF SE's activities. In addition to long-term economic objectives, the corporate strategy also gives appropriate consideration to environmental and social objectives. Corporate planning includes relevant financial and sustainability objectives. The Management Board performs its management duties as a collegial body. Notwithstanding the overall responsibility, the Management Board members are individually responsible, within the framework of the Management Board resolutions, for managing the departments assigned to them. The allocation of responsibilities between the Management Board members is set out in the executive organization chart. Information on the areas of responsibility of the members of the Management Board and also their curricula vitae can be found on the company's website at https://www.lpkf.com/en/company/management . The Management Board meets regularly for joint meetings. The rules of procedure for the Management Board are published on the company's website ( https://www.lpkf.com/en/investor-relations/corporate-governance ). SUPERVISORY BOARD The Supervisory Board consists of five members, who are elected individually by the Annual General Meeting. The specific composition of the Supervisory Board in the 2025 financial year and the disclosures pursuant to Section 285 no. 10 HGB can be found in the combined management and Group management report in this Annual Report. The CVs of the Supervisory Board members can be found on the company's website at https://www.lpkf.com/en/company/management . The Supervisory Board advises and monitors the Management Board in the management of the company, including sustainability issues. It is involved in strategy and planning as well as in all issues of fundamental importance to the company. The Articles of Association and the rules of procedure require the Management Board to obtain the approval of the Supervisory Board for major business transactions. The chair of the Supervisory Board coordinates the work of the Supervisory Board, chairs its meetings and represents the interests of the board externally. The Management Board informs the Supervisory Board regularly, promptly and comprehensively in writing and at their regular meetings about all issues relevant to the company. These include, in particular, the strategic planning, the business performance, the Group's situation, opportunity and risk management and compliance. The Supervisory Board is informed immediately of any significant incidents; if necessary, an extraordinary meeting is convened. The Supervisory Board has adopted rules of procedure for its work, which are published on the company's website ( https://www.lpkf.com/en/investor-relations/corporate-governance ). The Supervisory Board regularly reviews the efficiency of its own work and of its committees (efficiency review). The efficiency review is generally conducted annually and is based on a structured and detailed questionnaire that is sent to all members of the Supervisory Board. The efficiency review focuses in particular on the working methods of the Supervisory Board and its committees, their composition and structure, the quality of the advisory and monitoring work, the cooperation within the Supervisory Board and with the Management Board and the provision of information by the Management Board. The last efficiency review of the Supervisory Board and its committees was conducted in December 2025. The results were discussed by the Supervisory Board. They confirmed the efficiency and effectiveness of the work of the Supervisory Board and its committees, the constructive cooperation in a spirit of trust within the Supervisory Board and with the Management Board as well as the appropriate, timely and comprehensive provision of information. There were no indications of any significant need for improvement. LPKF SE has taken out third-party liability insurance (D&O insurance) for all members of the Management Board and the Supervisory Board. The nominations for the election of Supervisory Board members take into account the knowledge, skills and professional experience required to perform the tasks. This also applies to the diversity of the Supervisory Board's composition in accordance with the objectives for its composition explained below. With regard to its nominations for the election of new Supervisory Board members that are presented to the Annual General Meeting, the Supervisory Board must ascertain from the candidates that they are able to devote the expected amount of time. Detailed CVs of all the Supervisory Board members are published on the company's website . SUPERVISORY BOARD COMMITTEES The Supervisory Board has formed an Audit, Risk and ESG Committee and a Remuneration and Nomination Committee. The Audit, Risk and ESG Committee consists of three Supervisory Board members. These are currently Alexa Siebert (chair), Anka Wittenberg and Paul Owsianowski. The members of the Audit, Risk and ESG Committee are, as a group, familiar with the sector in which the company operates. Alexa Siebert is independent and, due to her educational qualifications as a business economist and tax consultant, her professional background as a manager and, in particular, her experience as chair of the audit and risk committee of the listed company SMA Solar Technology AG, a proven financial expert with special knowledge and experience in the areas of financial statement audits, accounting (including special knowledge and experience in the application of accounting principles and internal control and risk management systems) and ESG, where her accounting and financial statement audit knowledge also includes sustainability reporting and its audit and assurance services. As a chair and non-executive director in various national, international and global roles and by virtue of her degree in economics, Anka Wittenberg, who is also independent, has particular knowledge in the area of the auditing of financial statements. She also has many years of experience in the areas of sustainability, ESG and CSR, both in terms of implementation as well as from a strategic and financial perspective. Paul Owsianowski is independent and a recognized financial expert thanks to his extensive expertise in finance, accounting and the auditing of financial statements. He brings valuable knowledge from his mandates at listed companies as well as capital market expertise in the areas of law, corporate governance and compliance. Paul Owsianowski has a deep understanding of the markets in which the LPKF Group operates, particularly the semiconductor market. His profile is complemented by his experience in M&A, financing and corporate strategy, including investment decisions and corporate development, which enables him to provide targeted support for strategic and operational requirements. Meetings of the Audit, Risk and ESG Committee take place at least once every calendar quarter. The Audit, Risk and ESG Committee is responsible for the audit of the accounting records, the monitoring of the accounting process, the effectiveness of the internal control system, the risk management system and the internal audit system as well as the audit of the financial statements and compliance. It also prepares the necessary resolutions of the Supervisory Board in this context. The accounting includes in particular the consolidated financial statements and the Group management report (including the sustainability report), the interim financial information and the HGB single-entity financial statements. In particular, the Audit, Risk and ESG Committee prepares the proposal of the Supervisory Board to the Annual General Meeting for the election of the auditor as well as the resolution of the Supervisory Board on the determination of the key audit areas, the issuing of the audit engagement to the auditor and the fee agreement. In this connection, it also examines the prescribed independence of the auditor. The Audit, Risk and ESG Committee decides on whether to approve the provision of permissible non-audit services by the auditor and regularly assesses the quality of the audit. It also prepares the selection and commissioning of any external audit of any non-financial (Group) statement or separate non-financial (Group) report by the Supervisory Board. The Audit, Risk and ESG Committee discusses with the auditor the opportunity and risk assessment, strategy, planning and results of the audits. The chair of the Audit, Risk and ESG Committee regularly discusses the progress of the audit with the auditor and reports on this to the committee. The Audit, Risk and ESG Committee consults with the external auditors on a regular basis without the Management Board. The Audit, Risk and ESG Committee issues recommendations to the Supervisory Board to facilitate and prepare the decision of the Supervisory Board on the adoption of the annual financial statements and the consolidated financial statements. Furthermore, the Audit, Risk and ESG Committee also examines environmental, social, governance, sustainability, health and safety and social responsibility topics (together the "ESG topics"). It advises the Supervisory Board and the Management Board on ESG topics and supports and monitors the measures taken by the Management Board to implement them. It is responsible in particular for preparing the audit of the sustainability report pursuant to the CSRD. The Remuneration and Nomination Committee consists of three Supervisory Board members, who are currently Anka Wittenberg (chair, independent), Dr Dirk Rothweiler and Alexa Siebert. Meetings of the Remuneration and Nomination Committee are held at least twice per calendar year. The Remuneration and Nomination Committee is responsible for supporting and preparing decisions of the Supervisory Board on Management Board members; in particular, it makes proposals for the appointment, reappointment and dismissal of Management Board members. In addition, the Remuneration and Nomination Committee prepares the long-term succession planning for the Management Board on behalf of the Supervisory Board, examines the personnel policy and the principles and structures of personnel development and planning at the executive level and consults with the Management Board and the Supervisory Board on these issues. The Remuneration and Nomination Committee prepares the Supervisory Board's resolution on the remuneration system for the Management Board and regularly reviews this system. In addition, the committee examines and assesses the appropriateness of the total remuneration of the individual members of the Management Board and the establishment and review of the target objectives for variable compensation by the Supervisory Board. In this context, the committee prepares the relevant resolutions of the Supervisory Board as well as the resolution of the Supervisory Board on the annual remuneration report. The Remuneration and Nomination Committee nominates suitable candidates to the Supervisory Board for it to propose to the Annual General Meeting for the election of Supervisory Board members. The Strategy Committee was dissolved on 22 July 2025. In future, the relevant topics will be discussed and deliberated directly by the Supervisory Board as a whole at its meetings. SETTING TARGETS FOR THE PROPORTION OF FEMALE MEMBERS ON THE SUPERVISORY BOARD, THE MANAGEMENT BOARD AND THE TWO MANAGEMENT LEVELS BELOW THE MANAGEMENT BOARD As a listed European Company that is not subject to the German Co-Determination Act (Mitbestimmungsgesetz), LPKF SE is legally obliged to set targets for the proportion of women on the Supervisory Board, the Management Board and the two management levels below the Management Board. The Supervisory Board redefined the target for the proportion of women on the Supervisory Board at 40% and the target for the proportion of women on the two-member Management Board at zero (corresponding to a target quota of 0%) on 20 February 2024 and updated it on 18 March 2024. The deadline for achieving both new targets is 19 February 2029. As at 31 December 2025, the proportion of women on the Supervisory Board was 40% and this target was therefore achieved. The proportion of women on the Management Board was 0% as at the same date and thus met the target. In setting the target figure of zero for the Management Board in 2024, the Supervisory Board was guided by the following considerations and justified the decision as follows: "The Supervisory Board respects the objectives pursued with the introduction of a quota for women and attaches great importance to equal treatment and equal opportunities for women and men as well as further diversification. The Management Board currently consists of two members who are both men and whose current service contracts run until 31 December 2028 (Dr Klaus Fiedler) and March 2028 (Peter Mümmler). The Supervisory Board would like to appoint the most suitable candidates in the best interests of the company, taking into account their professional qualifications and personal suitability, irrespective of gender. This, however, would hardly be possible in the case where the Management Board consists of only two members and the target for the proportion of women is more than 0%. The Supervisory Board currently sees no need to expand the Management Board. It will, however, continue to monitor the legal requirements. When filling the position of the CFO on the Management Board, which continues to have two members, the Supervisory Board decided independently of the question of gender to select the most suitable candidate (Peter Mümmler) in due consideration of his professional qualifications and personal suitability for the purposes of the company and its stakeholders. In the course of the new appointment, the Supervisory Board also reviewed the defined target for the proportion of women on the Management Board and ultimately decided that this should remain unchanged, as the considerations involved when the target was defined in 2024 continue to apply. Should the Management Board be enlarged in the future, the Supervisory Board will review the targets and intends in such a case to set a new target of at least one woman if the Management Board has more than two members. Furthermore, the Supervisory Board will re-examine the target for the proportion of women on the Management Board if a new appointment to the two-member Management Board is to be made. For the future proportion of women in the two management levels below the Management Board, the Management Board set targets in 2022 that are to be achieved by 30 June 2027. These targets are 30% at the first management level and 20% at the second management level below the Management Board and are based on the forecast development of the size of the workforce at the management levels up to 30 June 2027. As at 31 December 2025, the proportion of women was 30% at the first management level and 13.4% at the second management level. LONG-TERM SUCCESSION PLANNING, DIVERSITY CONCEPT For the purposes of the continuous succession planning for the Supervisory Board, the Supervisory Board follows what is known as the staggered board concept when appointing its members. The terms of office of the Supervisory Board members do not run in parallel but are staggered for a term of office of usually four years each. One of the tasks of the Supervisory Board is to work together with the Management Board to ensure the long-term succession planning of the Management Board. In addition to the requirements of the German Stock Corporation Act and the Code, the succession planning takes into account the diversity concept adopted by the Supervisory Board for the composition of the Management Board. Taking the specific qualification requirements and the aforementioned criteria into consideration, the Supervisory Board first develops an ideal candidate profile and then draws up a shortlist of available professionals. Structured interviews are conducted with these candidates. If necessary, the Supervisory Board is supported by external consultants in the development of the requirements profile and the selection of candidates. With regard to the composition of the Management Board, the Supervisory Board pursues a diversity concept and fully embraces diversity, taking into account the following aspects: The members of the Management Board must have the necessary knowledge, skills and professional experience to properly perform their duties. The members of the Management Board must be familiar with the relevant industrial environment. At least some members of the Management Board shall additionally have knowledge in the field of laser technology and in the areas of capital markets and financing. At least the member of the Management Board responsible for finance must have expertise in the fields of accounting or auditing and individual members of the Management Board should have experience in managing a medium-sized company. Attention should be paid to diversity when looking for qualified individuals for the Management Board. The extent to which different, mutually complementary professional profiles, professional and life experiences and an appropriate representation of both genders benefit the work of the board should also be recognized. As a rule, only people who have not yet reached the age of 65 should be members of the Management Board. The age of the Management Board members shall therefore also be taken into account in the appointment. With regard to the proportion of women on the Management Board, the Supervisory Board has set the previously described target and deadline for achieving this. Diversity is intended to benefit the work of the board as a whole. The Supervisory Board decides which personality should fill a specific Management Board position in the best interests of the company and in due consideration of all the circumstances of the individual case. From 1 April 2025 to 31 December 2025, the Management Board of LPKF SE consisted of two members who were professionally and personally qualified in different areas. In the opinion of the Supervisory Board, the diversity concept for the Management Board was complied with during the reporting period and is also complied with at present. LPKF SE has developed a high-potential system for the succession planning for key positions in order to identify and evaluate suitable candidates for management roles worldwide. These candidates are discussed and finally confirmed in cascading integration rounds. Individual personnel development measures are defined and implemented for the relevant incumbents. OBJECTIVES FOR THE COMPOSITION OF THE SUPERVISORY BOARD, SKILLS PROFILE, DIVERSITY CONCEPT With the support of the Remuneration and Nomination Committee, the Supervisory Board has set targets for its composition and defined a skills profile that takes diversity aspects into account. The skills profile has been reviewed and refined and is applied to nominations for the election of new Supervisory Board members. The Supervisory Board as a whole has the knowledge, skills and professional experience necessary to properly fulfil its duties. The members of the Supervisory Board are generally familiar with the sector in which the company operates. In accordance with the legal requirements of Section 100(5) AktG and the recommendations of the German Corporate Governance Code, at least one member of the Supervisory Board has expertise in the field of accounting and at least one other member has expertise in the field of auditing; the expertise in each case also extends to sustainability reporting. Independence and avoidance of potential conflicts of interest The Supervisory Board shall include an appropriate number of independent members from among the shareholders as referred to in Recommendation C.6 of the German Corporate Governance Code of 28 April 2022 (GCGC 2022). A member of the Supervisory Board shall be considered independent within the meaning of this recommendation if they are independent of the company and its Management Board and independent of any (possible) controlling shareholder. The Supervisory Board has set the following minimum thresholds for an appropriate number of independent members: More than half of the shareholder representatives shall be independent of the company and the Management Board. According to the definition in recommendation C.7 GCGC 2022, a Supervisory Board member is independent of the company and its Management Board if they have no personal or business relationship with the company or its Management Board that may constitute a substantial and not merely temporary conflict of interest. The Supervisory Board takes into account the indicators listed in recommendation C.7 GCGC 2022 when assessing independence. At least one shareholder representative shall be independent of any (possible) controlling shareholder. According to recommendation C.9 GCGC 2022, a Supervisory Board member is independent of the controlling shareholder if they or a close family member are or is neither a controlling shareholder nor a member of the controlling shareholder's executive body and does not have a personal or business relationship with the controlling shareholder that may constitute a substantial and not merely temporary conflict of interest. The Supervisory Board shall not include any member who exercises an executive or advisory function at a significant competitor of the company or the Group or who has a personal relationship with a significant competitor. The same shall apply to executive or advisory functions at major customers or suppliers of the company or the Group as well as to personal relationships with such companies if this may constitute a significant and not merely temporary conflict of interest The Supervisory Board shall not include more than one former member of the Management Board. Age limit The age limit for the members of the Supervisory Board has been set in the rules of procedure of the Supervisory Board at a maximum age of 72 years at the time they are elected. Determination of a standard limit for the length of service on the Supervisory Board In order to ensure a balanced mix of experience and renewal on the Supervisory Board, the Supervisory Board has set a standard limit for the average length of service on the Supervisory Board of ten years from the date a member takes office. Consideration of diversity Attention should also be paid to diversity when looking for qualified individuals for the Supervisory Board. The extent to which different, mutually complementary professional profiles, professional and life experience as well as an appropriate representation of both genders on the Supervisory Board benefit the work of the Supervisory Board should also be recognized. With regard to the proportion of women on the Supervisory Board, the Supervisory Board has set the previously described target and deadline for achieving this. Further requirements With regard to the requirements of individual Supervisory Board members, the Supervisory Board has set out the following in its skills profile: Supervisory Board members shall have business and operational experience, ideally also in management functions or on supervisory bodies of national or international companies. They shall be able to assess the economic viability, appropriateness and legality of the business decisions to be evaluated in the course of the Supervisory Board's work. This includes in particular the ability to assess key accounting documents, the internal control system, the opportunity and risk management system and compliance structures, if necessary with the assistance of the auditor. Members should be in a position to identify and assess on a well-informed basis the economic, strategic and technological challenges facing the company and thus make appropriate monitoring and advisory decisions. They shall be prepared to commit sufficient time and substantive engagement in order to perform the tasks of their mandate. The international activities of LPKF Laser & Electronics SE have been taken into account in the composition of the Supervisory Board to date and will continue to be taken into account in the Supervisory Board's nominations to the Annual General Meeting. In addition to a very good command of English, international professional experience in management or control functions and an understanding of global economic relationships are particularly important here. Foreign nationality is not a prerequisite for having international experience. The Supervisory Board shall include at least one member with relevant international experience. At least one member of the Supervisory Board shall have expertise in the areas of environmental, social and corporate governance (ESG), particularly in respect of key sustainability issues affecting the company. The Supervisory Board as a whole shall have technological and market-related expertise in the business segments relevant to the company. This includes in particular knowledge in the field of laser technology, the electronics and semiconductor market and related technologies, such as specialized mechanical engineering. It is sufficient if at least one member has the relevant knowledge and experience. In addition, the Supervisory Board shall have knowledge in the areas of corporate governance, technology and business development, digitalization, artificial intelligence and cybersecurity. The personal requirements for Supervisory Board members also include independence within the meaning of the German Corporate Governance Code and the absence of overboarding conflicts. The implementation status regarding the profile of skills and expertise for the entire Supervisory Board and other objectives for the composition of the Supervisory Board is set out in the qualification matrix below. Based on this matrix, the Supervisory Board as a whole meets the targets that have been set and fulfils the diversity concept as well as the skills profile in its current composition. At least one Supervisory Board member has relevant knowledge and/or experience in each of the fields of competence. In particular, the Supervisory Board considers all of its current members - Alexa Siebert, Anka Wittenberg, Paul Owsianowski, Dr Dirk Michael Rothweiler and Prof. Ludger Overmeyer - to be independent, meaning that the Supervisory Board has the required number of independent members. QUALIFICATION MATRIX OF THE SUPERVISORY BOARD OF LPKF LASER & ELECTRONICS SE, NOVEMBER 2025 Siebert Rothweiler Overmeyer Owsianowski Wittenberg Governance Member since: June 2023 June 2017 June 2019 June 2025 June 2023 Appointed until: AGM 2027 AGM 2026 AGM 2028 AGM 2029 AGM 2027 Personal requirements Independence x x x x x from the company and the Management Board* x x x x x from any controlling shareholder** x x x x x No overboarding*** x x x x x International experience x x x x x Diversity Year of birth: 1970 1963 1964 1987 1963 Gender F M M M F Nationality: German German German German German Professional experience Management experience at international companies x x x x Experience on supervisory boards of listed companies x x x x x Knowledge of the issues relating to the internal control and risk management system x x x x x Knowledge of the company's internal structures and operating principles x x x x x Knowledge of issues relating to business performance, business development and M&A x x x x x Siebert Rothweiler Overmeyer Owsianowski Wittenberg Knowledge of issues relating to technology development and innovation management x x x x x Knowledge of issues relating to AI and cybersecurity x x x Expertise in the field of human resources x x Knowledge of the aspects of environmental and social sustainability x x x x Knowledge of issues relating to corporate governance and compliance and company law x x x x x Expertise in the field of accounting **** x x x x Expertise in the field of auditing **** x x x Familiarity with the business sector Technical expertise, especially in the areas of - Lasers and optics x x - Semiconductors x x - Specialized mechanical engineering x x Market knowledge, especially in the areas of - Lasers and optics x x x - Semiconductors x x - Specialized mechanical engineering x x x International corporate experience EMEA x x x x Asia x x x x x North America x x x x x Siebert Rothweiler Overmeyer Owsianowski Wittenberg Committees Audit, Risk and ESG Committee x x x Nomination and Remuneration Committee x x x * as referred to in C.7 GCGC ** as referred to in C.9 GCGC *** as referred to in C.4 and C.5 GCGC **** as referred to in Section 100(5) AktG, D.3 GCGC SHAREHOLDERS AND ANNUAL GENERAL MEETING The shareholders of LPKF SE exercise their co-determination and control rights at the Annual General Meeting, which is held at least once a year and which decides on all matters determined by law. Each share entitles the holder to one vote. Every shareholder who registers in good time is entitled to attend the Annual General Meeting. Shareholders who are unable to attend in person have the option of having their voting rights exercised by a bank, a shareholders' association, the proxies appointed by LPKF SE, who are bound by the instructions they receive, or another proxy of their choice. The Management Board may provide for shareholders to cast their votes in writing or by way of electronic communication (absentee ballot) and, in the case of Annual General Meetings that generally require attendance in person, for shareholders to take part in the Annual General Meeting without being present on site and to exercise all or some of their rights in whole or in part by way of electronic communication. The invitation to the Annual General Meeting and the reports, documents and information required by law for the Annual General Meeting are published in accordance with the provisions of the German Stock Corporation Act and made available on LPKF SE's website in German and English. TRANSPARENCY LPKF SE regularly informs capital market participants and the interested public about the Group's economic situation and important developments. The annual report, the half-yearly financial report and the quarterly financial reports are published within the prescribed deadlines. Press releases and, if necessary, ad hoc announcements provide information on current events and new developments. All information is published using appropriate electronic media, such as by e-mail and on the Internet. The website at https://www.lpkf.com also provides extensive information on the LPKF Group and LPKF shares. The planned dates of the main recurring events and publications - such as the Annual General Meeting, annual report, quarterly financial reports and earnings calls - are compiled in a financial calendar. The calendar is published at a sufficient time in advance and made available on LPKF SE's website. SHARE TRADING OF MEMBERS OF THE COMPANY'S EXECUTIVE BODIES Information on directors' dealings is published by LPKF SE on the Internet ( https://www.lpkf.com/en/investor-relations/publications/mandatory-publications ) and reported to the responsible supervisory authorities. ACCOUNTING AND AUDITING LPKF SE prepares its consolidated financial statements and the interim consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS), as adopted in the European Union. The annual financial statements of LPKF SE are prepared in accordance with German commercial law (HGB - Commercial Code). The annual and consolidated financial statements are prepared by the Management Board, reviewed by the Audit, Risk and ESG Committee and the Supervisory Board and audited by externally appointed auditors. The interim reports and the half-year financial report are discussed by the Supervisory Board and its Audit, Risk and ESG Committee as well as with the Management Board before they are published. The consolidated financial statements and the annual financial statements of LPKF SE were audited by the statutory auditor and Group auditor of the company elected by the Annual General Meeting on 4 June 2025 for the 2025 financial year, Baker Tilly GmbH & Co. KG Wirtschaftsprüfungsgesellschaft, Düsseldorf, Germany. Baker Tilly GmbH & Co. KG has audited the annual and consolidated financial statements of LPKF SE since the 2023 financial year. The responsible auditor since the 2023 financial year has been Marco Brokemper. The audits were conducted in accordance with German auditing regulations and the generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany). They also covered risk management and compliance with the requirements relating to the corporate governance statement pursuant to Section 161 AktG. It was also contractually agreed with the auditor that they would inform the Supervisory Board immediately of any possible grounds for exclusion or indications of bias as well as of significant findings and incidents during the audit. There was no reason to do so during the audits for the 2025 financial year. Garbsen, 10 February 2026 For the Supervisory Board For the Management Board ALEXA SIEBERT DR. KLAUS FIEDLER ‌COMBINED MANAGEMENT REPORT for the LPKF Group and LPKF Laser & Electronics SE ‌BASIC INFORMATION ON THE GROUP GROUP STRUCTURE AND BUSINESS MODEL The LPKF Group (LPKF) is a global technology company with an export share of around 90% and customers in over 60 countries. The company primarily develops laser-based solutions for dynamic markets such as the electronics industry, the semiconductor industry, medical technology, the solar industry, the automotive supply industry, as well as research institutions and universities. LPKF was founded in 1976 and has 50 years of experience as a developer and supplier of innovative capital goods for industrial companies and research institutions. Research and development are of central importance to LPKF. Many innovations and further developments are created in close cooperation with customers. To maintain its innovative strength, the company invests approximately 10% of its annual revenue in its own research and development. Development and production take place in Europe. The LPKF Group has four segments and has a broad product portfolio. The company is focused on giving its customers competitive advantages through the use of new technologies. In this way, LPKF is driving the transition from traditional to laser-based manufacturing methods in specific markets and enabling the development of innovative end products in several areas. The LPKF Group is headquartered in Garbsen near Hanover, Germany. The company has a broad global presence with locations in Europe, Asia, and North America and 727 employees worldwide. LPKF shares are listed in the Prime Standard of the Deutsche Börse Group. LEGAL STRUCTURE OF THE GROUP As of 31 December 2025, LPKF had eight subsidiaries, which together with the parent company form the scope of consolidation. The subsidiary LPKF Laser & Electronics K.K. was deconsolidated from the Group's scope of consolidation with effect from 30 September 2025, due to the loss of control. Until that date, the company was fully consolidated in the consolidated financial statements. LPKF Laser & Electronics SE Garbsen/Germany (Production/Sales/Service) Production subsidiaries Sales and Service companies LPKF WeldingQuipment GmbH Fürth/Germany (100 %) LPKF SolarQuipment GmbH Suhl/Germany (100%) LPKF Laser & Electronics d.o.o. Naklo/Slovenia (100%) LPKF Distribution Inc. Tualatin (Portland)/USA (100%) LPKF Shanghai Co., Ltd. Shanghai, Suzhou, Tianjin, Shenzhen/China (100%) LPKF (Tianjin) Co. Ltd. Tianjin /China (100%) LPKF Laser & Electronics Korea Ltd. Seoul/Korea (100%) LPKF Laser & Electronics Vietnam Co., Ltd. Bac Ninh/Vietnam (100%) Operating segments The management and control of the LPKF Group is independent of the Group's legal structure. Top-level Group functions include strategic business development, innovation management and core activities in the areas of controlling, investor relations, HR, accounting, risk management, compliance, marketing, procurement and management systems (quality, occupational safety and environment). Sales, service, production and development activities are handled by separate segments. In LPKF's most important markets outside Germany, sales and service functions are also provided through regional sales companies in close collaboration with segment management. In the 2025 financial year, LPKF operated in the following segments: DEVELOPMENT ELECTRONICS Systems for printed circuit board development and research WELDING Systems for electronics production and the manufacture of glass components SOLAR Systems for plastic welding Systems for the production of solar cells and for laser transfer printing Development In the Development segment, LPKF supplies practically all the electronic equipment that developers require to rapidly manufacture and assemble printed circuit board prototypes in house and largely without the use of chemicals. In addition to the development departments of industrial companies, the company primarily supplies public organizations such as research institutes, universities and schools. The company has discontinued its own activities in the ARRALYZE segment and is now focusing on selling this product area to a biotechnology company. Electronics LPKF's Electronics segment manufactures systems that are primarily used in production in the electronics industry. These include laser systems for cutting print stencils (StencilLasers) and laser systems for cutting and drilling rigid and flexible printed circuit boards. The Electronics segment also includes LIDE technology (Laser Induced Deep Etching) developed by LPKF. The LIDE business encompasses both the development and sale of laser systems for high-precision structuring of glass and the production of glass components using the company's own LIDE systems. Welding The Welding segment comprises laser systems, thermal process monitoring and software for welding plastics. The business unit develops and sells standardized standalone and integration systems, but also offers tailored solutions for customers. These systems are used in the automotive supply industry, medical technology and in the production of consumer electronics. Solar In the Solar segment, LPKF develops and produces laser systems (LaserScribers) that are used for structuring thin-film solar cells for various thin-film technologies. The customer base of this segment includes international solar cell manufacturers. This segment also includes laser systems for the digital printing of functional pastes and inks (Laser Transfer Printing, LTP). LPKF competes with a different set of competitors in each segment and in each product group. These competitors range from multinational corporations to smaller, regional providers who often operate in just one market. Production and procurement Production takes place exclusively at the German locations and in Slovenia. Rapid prototyping equipment and other equipment for the Development segment, as well as some of the laser sources used within the Group, are produced by the subsidiary LPKF Laser & Electronics d.o.o. in Naklo (Slovenia). Systems for the Electronics segment are manufactured in Garbsen, Germany. Welding segment production took place in Fürth, Germany. In the North Star project, it was decided to close production in Fürth and to source this service from SolarQuipment GmbH in Suhl. Solar and LTP systems are produced in Suhl, Germany. At LPKF, production generally comprises the assembly of machinery and equipment. Almost all components and complex assemblies for the machines are purchased externally. Depending on capacity utilization at the production sites, some pre-assembly or assembly

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