Medacta : 2024 Sustainability Report

About this update from Medacta Group Sa

SUSTAINABILITY REPORT 2024 Healthy Patients in a Healthy World FOREWORD AND METHODOLOGICAL NOTE This document constitutes the seventh Sustainability Report (hereinafter also the "Report") published by Medacta Group SA (hereinafter the "Group" or "Medacta"). This edition complies with the applicable elements of article 964 of the Swiss Code of Obligations (hereinafter "art. 964"), governing the disclosure/ communication of non-financial information, including the Swiss Ordinance on Climate Disclosures. The Report presents information with respect to human rights, anti-corruption, and bribery, also highlighting a description of due diligence and measures taken to implement the policies related to internal guidelines or strategies of Medacta regarding these topics. The Report is published by Medacta as a separate document from the 2024 Annual Report. SCOPE OF THE STATEMENT The scope of reference of the information contained in the Report coincides with the area of consolidation of the Annual Report as of 31 December 2024 and, therefore, includes the parent company Medacta Group SA and all its consolidated companies on a line-by-line basis. Collected data, unless otherwise indicated, are presented on a consolidated basis. Data and information presented in the Report refer to the period between 1 January 2024 and 31 December 2024; in some cases, for comparative purposes related to future targets, we provide data and information relating to the year chosen as a reference (baseline). REPORTING AND APPLICATION OF REPORTING STANDARD PROCESS The Report was drawn up in accordance with art. 964 (summary table on page 76) and with reference to the Sustainability Reporting Standards published by the Global Reporting Initiative (GRI) currently in force. The GRI Table, with the indication of the standards and the respective indicators applied, can be found on pages 74-75. The Report was prepared based on a structured reporting process that included: • the involvement of corporate facilities/ departments that contributed to the identification and evaluation of the material topics, as well as of significant projects/initiatives to be described in the document and to the collection, consolidation, and validation of quantitative data, each insofar as its own area of purview; • the Report has been approved by the Board of Directors ("BoD") of Medacta Group SA, issued at the meeting on 24 March 2025. The Report was published the day after the BoD approval. The contents of the Report have been supplemented, as warranted, by other information contained in the Annual Report (Management Report, Corporate Governance Report, Remuneration Report, and Financial Report) and on the company website, which can be consulted by following the specific references. The Remuneration Report and the Financial Report are both subject to audit opinion. The Sustainability Report is available on the company website at: sustainability.medacta.com The Investor Relations department is the contact point for any question about the report ( investor.relaons@ medacta.ch ). This Report edition has not been subjected to external assurance. READ MORE 2024 Annual Report * READ MORE http://www.medacta.com The data collected in this Report relate to the activities carried out by our Group in 2024. The analysis includes the entire scope of our business: headquarters, subsidiaries, educational institutes, logistics centers and the Foundation, unless otherwise stated. * https://www.medacta.com/EN/financial-reports-and-presentations Sustainability Report 2024 ABOUT THIS REPORT The Report highlights our commitment to sustainability, through our continuous evolution in terms of information related to sustainability. Through this Report we want to keep track of this evolution, which has seen us begin a journey born with the intention of defining a long-term strategy, as well as our way of being and doing business, which has allowed us, together with our ability of innovation and collaboration, to express ourselves at our best and generate sustainable shared value. It has been prepared with reference to the GRI framework- the TRACK-RECORD ON ESG RATINGS AND MAIN INDICES Since February 2021 Medacta has been included in SPI ESG Index of the SIX Exchange Since March 2021 Medacta has been rated "AA" by MSCI ESG ratings from "AAA" to "CCC" world's most widely recognized tool for organizations to communicate and demonstrate accountability for their impacts on the environment, the economy, and people. We present data of our impacts within the specified material topics, integral to our strategic targets for 2025 (see pages 17-18). These efforts align with our overarching purpose "Healthy patients in a healthy world." Rated as "Medium risk" from "Negligible" to "Severe" Rated as an overall grade of "B" from "A+" to "D-" TABLE OF CONTENTS A year in review 5 Governance 19 Caring for patients 31 Caring for people 39 Caring for the environment 51 Caring for the community 65 Appendix 73 A YEAR IN REVIEW Letter to stakeholders 6 Medacta at a glance 8 What we do 10 Value creation strategy 11 Our sustainability approach 12 LETTER TO STAKEHOLDERS 2024 has been a pivotal year for Medacta as we proudly celebrated 25 years of innovation in the medical industry. This milestone was marked by the 25 th Anniversary World Tour, a series of scientific events held across Europe, the United States, Australia, and Japan. We dedicated this tour to exploring the sustainability of personalized medicine and technology in orthopedics and spine surgery, bringing together over 2'000 participants from all over the world. The primary goal was to foster the sharing of experiences and knowledge aimed at enhancing patient care, outcomes, and overall well-being. The 10 th M.O.R.E. International Symposium served as both the inaugural event and the highlight of the tour. We were honored to host this significant gathering in Lugano, Ticino, the birthplace of Medacta, where we continue to make substantial investments in our future. The year also witnessed a remarkable performance, with significant growth of 16.2% in constant currency, resulting in Euro 590.6 million in revenue. This accomplishment is rooted in our strong focus on innovative, sustainable out-of-the-box thinking that drives the development of minimally invasive techniques and personalized solutions, as well as surgeon-specific structured medical education. On September 25, we hosted our inaugural Capital Markets Day at our Swiss headquarters, attracting over 100 participants both in-person and online. The event provided a comprehensive overview of our history, patient-centric approach, growth strategy, innovative product portfolio, and financial outlook. Further reinforcing our global presence, we expanded our team, adding 177 new roles, reaching a total of 1'907 employees, to pursue new goals of excellence and continue our growth. Recognizing that our people are essential to Medacta's success, we launched a global initiative in 2024 to refresh our core values, ensuring they remain true and aligned to our founding principles and purpose, as we continuously strive to strengthen our culture. To reinforce our global operations, we continued our successful expansions in Rancate and Castel San Pietro with a consistent focus on improving energy efficiency and maintaining a low-carbon energy mix. Moreover, we made strategic investments in our supply chain, enhancing logistics and distribution for greater efficiency. Medacta has a longstanding commitment to sustainability, caringly focusing on areas we believe are most relevant to our patients, our people, the environment, and the community, with continued support from our Foundation, Medacta for Life. While we recognize the importance of continuous improvement, we are proud of the progress we've made to date. Our innovative solutions empower millions of people to regain mobility and return to active lifestyles, enhancing their quality of life. In line with our commitment to transparency and best practices in climate-related financial reporting, this year, we have adopted the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in this Report. This framework provides a structured approach to identifying and disclosing the potential financial impacts of climate change on our organization. By aligning with the TCFD recommendations, we aim to provide our stakeholders with clear and consistent information about our climate-related risks and opportunities. OUR ESG IMPACT IN 2024 This Report highlights Medacta's commitment to improving patient outcomes and satisfaction while promoting healthcare sustainability and creating value for our stakeholders. We can look back with pride on our achievements and look forward to those yet to come. Once again, I extend my sincere thanks to every colleague who contributes daily to making Medacta more innovative and sustainable. ENVIRONMENT 100% * Renewable electricity 0% * -43% ** Oil GHG emissions since 2019 SOCIAL 1'907 Employees 177 New employees 500K Donations (Euro) to Medacta for Life Foundation ECONOMIC GOVERNANCE 590.6M 68 16.2% Revenues (Euro) Countries Revenue growth in constant currency * Headquarters and facilities in Castel San Pietro and Rancate ** GHG emissions (Scope 1 Fuel Combustion + Scope 2 Purchased Electricity on Market base) only for headquarters and facilities in Castel San Pietro and Rancate Sustainability Report 2024 MEDACTA AT A GLANCE 25 TH ANNIVERSARY In 2024, our company reached and celebrated the significant milestone of 25 years of activity. This anniversary represented a pivotal moment to reaffirm our dedication to sustainable innovation and world-class surgeon education to improve patient outcomes. As we reflected on our journey, we renewed our pledge to environmental stewardship, social responsibility, and robust governance, recognizing that our long-term success is intrinsically linked to the well-being of our stakeholders and the broader global community. This milestone reinforced our strategic vision to continue driving positive change, leveraging our experience to address emerging challenges and contribute to a more sustainable future. MEDACTA'S UNIQUE HISTORY Medacta's journey centers around the Siccardi family's unwavering commitment to improving patient outcomes and healthcare sustainability. This dedication spans three generations, with each bringing a unique perspective, experience, and passion. In 1999, Alberto Siccardi, our founder, chairman and former CEO, established Medacta after his own patient experience convinced him of the importance of pioneering an innovation-centered approach to joint replacement. Following his desire to improve care for patients and drawing on his own personal experience with orthopedic procedures, Alberto Siccardi dedicated himself to the pursuit of innovation to improve orthopedic techniques and prostheses. GLOBAL KEY PLAYER Medacta is a global key player specializing in the design, production, and distribution of innovative, personalized, and sustainable solutions for joint replacement, sports medicine, and spine surgery. With an unwavering dedication to enhancing patient outcomes and satisfaction, for us, it is essential to embrace sustainable innovation, which is the foundation of all our projects. We drive our innovation by providing minimally invasive techniques and personalized solutions to the unique needs of each individual patient. We believe that education is an indispensable tool for transforming innovation into tangible benefits for patients, surgeons, and healthcare systems. Through the M.O.R.E. (Medacta Orthopaedic Research and Education) Institute, we support our innovative products and surgical techniques with an extensive and tailored program of medical education. VISION Our vision is to improve the care and well-being of orthopedic and spine surgery patients around the world through our experience and passion. With our surgical innovations and medical education programs, we strive to enable a healthy and active lifestyle for every patient, strongly focusing on healthcare sustainability. MISSION Our mission is to transform the patient experience by developing advanced surgical approaches and medical devices through sustainable and responsible innovation. With this goal in mind, we focus on increasing our collaboration with surgeons and universities worldwide, constantly investing in medical education, innovative technologies, and personalized solutions. WHERE WE ARE Headquarters and production facilities are in Castel San Pietro and Rancate, both located in Switzerland, where we have 905 employees in the aggregate, out of 1'907 in total. Sales organization operates in 12 countries through our local subsidiaries and serves 56 additional countries through stocking distributors. This structure allows the Group to pursue its strategy in the attractive markets of Europe, Middle East and Africa (EMEA), North America, Asia Pacific, and Latin America. Entities included in the scope of consolidation are listed in the Appendix (see page 77). 2024 CORPORATE UPDATES New construction works in Ticino In 2024, we continued the expansion of the new facility construction in Rancate along with the one that is already underway in Castel San Pietro, doubling our production capability to support our future growth and to meet the high demand for our products. In total, Medacta's plants in Ticino will cover more than 36'800 square meters. Capital Markets Day In 2024, we held our first Capital Markets Day on September 25 at our headquarters. The event attracted over 100 participants, both in-person and online, providing a comprehensive overview of the company's history and patient focus, growth strategy, innovative product portfolio, financial outlook, and strong commitment to corporate social responsibility. Attendees had the opportunity to visit our advanced production facilities in Castel San Pietro and Rancate. 2024 has been a very important year for Medacta. We reached the significant milestone of 25 years and celebrated with a World Tour, a series of scientific events in Europe, the United States, Australia, and Japan, highlighting our commitment to improving patient outcomes. We supported our rapid growth making room for our expansion in Ticino, with significant investments in our cutting-edge hubs in Rancate and Castel San Pietro. In twenty-five years, Medacta has made significant progress in helping to improve the quality of life for patients who, like me, have needed orthopedic care to regain a healthy and active lifestyle. As Medacta celebrates its twenty-fifth anniversary this year, we reflect on the history, accomplishments, and outstanding contributions that have solidified its position as one of the foremost orthopedic companies globally. Dr. Alberto Siccardi Founder, President, Patient Dr. Alberto Siccardi L S u u g s an ta o i - n 1 a 0 bility Report 2024 th M.O.R.E. 9 International Symposium WHAT WE DO We are active in three business lines: joint replacement, sports medicine, and spine surgery. For each business line, our products and surgical procedures are designed to improve patient well-being, facilitate the work of our surgeons, and increase the sustainability of the healthcare system by improving efficiency while reducing surgical costs. HIP Since our founding in 1999, we have been driven to advance the care and the satisfaction of our patients, bringing value throughout their entire orthopedic journey through minimally invasive and personalized solutions. We focused on developing new and improved products, techniques, and technologies for the hip segment of the orthopedic market. We created a comprehensive offering based on three complementary assets: a complete implant portfolio that can be used for primary procedures (i.e., first- time hip replacements), as well as revision procedures (i.e., secondary hip replacements), minimally invasive techniques and personalized technologies. KNEE Driven by our vision to advance the care and the satisfaction of our patients, bringing value throughout their entire orthopedic journey through personalized solutions, we focused on developing innovative products, techniques, and technologies for the knee segment of the orthopedic market. We designed a comprehensive and effective platform based on three complementary assets: personalized techniques, with a growing focus on Kinematic Alignment, advanced technologies such as the NextAR Knee Augmented Reality surgical application, and a complete implant portfolio that can be used for partial procedures (i.e., first-time knee replacements for only one portion of the knee) primary procedures (i.e., first-time complete knee replacements), as well as revision procedures (i.e., secondary knee replacements). * https://www.medacta.com/EN/financial-reports-and-presentations SHOULDER The shoulder market represents a significant growing component of our success. With the collaboration of international expert surgeons, we created an innovative, complete, and personalized portfolio of implants and cutting-edge technologies designed to support surgeons in improving patient care and satisfaction. SPORTSMED Our Sports Medicine business line started in 2016 and leverages in-depth anatomical analysis to design innovative and personalized solutions replicating the natural anatomy of joint native structures. This approach aims to enhance patient satisfaction by improving natural joint motion and biomechanics. SPINE Since our introduction into the spine market in 2009, we have leveraged our expertise in both minimally invasive techniques and personalized solutions to improve patients' care and satisfaction. Our innovative, complete, and effective spine offering provides surgeons with implants, instruments, and enabling technologies to perform a full range of procedures, from cervical to degenerative and deformity. Since inception, we have been providing spine implants pre-sterilized and ready for implantation. We strongly believe that pre-sterile implants can increase the efficiency of healthcare systems, reduce the risk of contamination, save time and costs. M.O.R.E. INSTITUTE Our business lines' solutions are supported by the M.O.R.E. Institute (where M.O.R.E. stands for Medacta Orthopaedic Research and Education, see page 36), which provides tailored high-level educational pathways through an international network of surgeons. For an extensive description of our products and related techniques, please make reference to the Management Report section included in the 2024 Annual Report. READ MORE 2024 Annual Report * 10

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