Sensirion : Annual Report 2023 web

Key Figures

19 % (24 %)

45 % (38 %)

233.2 Revenue

in CHF million

52.2 %Gross Margin

4.3 % EBITDA Margin

Challenging 2023, economic headwinds interrupt growth cycle

Unchanged support from global megatrends: energy efficiency, climate change and health

Increasing investment in R&D to bolster key launches in 2024 and 2025 and to fully realize long-term growth

Key Figures

1 EBITDA is calculated as the sum of operating profit or loss and depreciation, amortization and impairment loss.

2 Defined as the sum of investments in property, plant, and equipment, proceeds from sale of property, plant and equipment, investments in intangible assets and capitalized development expenditure.

2023 was a challenging year for Sensirion. After three reporting periods of strong growth during the pandemic and immediately after, we encountered some economic headwinds last year. High customer inventories and the generally subdued consumer sentiment led to weak demand from end customers, particularly in the appliances and consumer markets. Unlike many other electronics companies, we did not benefit from clearing high order backlogs, as we were able to continue delivering throughout the allocation phase. The decline in sales was further exacerbated in the reporting year by the normalization of the elevated demand for air quality products in the preceding years due to the pandemic.

Short-term visibility remains low due to the numerous geopolitical and macroeconomic challenges. Thanks to a strong

low utilization and a less favorable product mix. Never- theless, we continued to expand our sales and R&D capacities last year to enable significant product launches in new applications in 2024 and 2025. By doing so, we are also supporting and exploring promising innovation projects and market opportunities with a longer-term focus. While this impacts our profitability in the short term, it improves our growth prospects for the coming years. The expansion of the workforce is complete and we do not envisage any further additions in the coming months. At our production plants, ongoing capacity adjustments were made in the reporting year by reducing the number of temporary staff. Additional measures to increase productivity in the factories and in administration have been initiated. A loss of CHF -5.8 million was reported at the operating result level, corresponding to a net loss of CHF -6.6 million for the

From left: Marc von Waldkirch (CEO), Felix Mayer (Co-Chairman) and Moritz Lechner (Co-Chairman)

pipeline of new business for the coming years, as well as support from megatrends such as energy efficiency, climate change and health, our medium- and long-term outlook remains optimistic.

Lower sales due to the challenging market environment and no one-off medical business

Sales decreased to CHF 233.2 million (−27.5 % compared to the previous year, −24.3 % organic, −3.2 % due to foreign currency effects). Unlike the same period in the previous year, there was no one-off special effect on revenue from the CPAP medical sector this year (previous year: CHF 28.3 million). Adjusted for this special item, sales were down by 20.5 % as a result of economic conditions. This is solely attributable to reduced volumes of demand; market prices developed as expected. In addition, we did not lose any customers or ongoing projects.

The gross margin was 52.2 % and the EBITDA margin reached 4.3 %. Due to the low variable cost component of our products, the gross margin and EBITDA margin react disproportionately to changes in revenue. This effect was beneficial during the years of strong growth, but it had the opposite effect in the reporting year. After an above-average gross margin for a few years due to high utilization of production capacities, it shrank in the reporting year due to

period. Operating cash flow amounted to CHF −10.9 million.

Growing automotive market, significant slowing effects in the industrial and consumer markets

The automotive market has proved highly resilient to the economic downturn. Sales increased to CHF 72.5 million, up 11 % on the previous year. This growth was partly driven by new module projects as a Tier 1 supplier for European OEM customers and by the components business as a Tier 2 supplier.

The medical market as a whole saw sales decline by 41 % to CHF 44.9 million year on year. The previous year's period was influenced by a one-off special transaction of CHF 28.3 million in the CPAP segment, but demand has since fully normalized. Adjusted for this effect, sales in the core business were down slightly by 6.1 %. After a very strong first half of the year, we also felt the significant inventory optimizations by our major customers in this market during the second half.

After several years of strong growth, the broadly diversified industrial market experienced significant slowing effects. Compared to the previous year, sales were down by 34 % to CHF 101.0 million. This is primarily due to the appliances and HVAC (heating, ventilation and air con-

ditioning) markets. These segments have seen strong growth over the past two years and they further benefited from the much greater awareness of indoor air quality solutions brought about by the pandemic. The excess demand has normalized again since these boom years and is reflected in a temporary dip. The situation has been further exacerbated by very high inventories right along the value chain that are only slowly being depleted. The significant decline in sales is solely attributable to the economic situation; we have not lost any customers or projects in this market segment either. As things stand, we expect the inventory corrections to be complete by the first half of 2024. Business will also be boosted by new projects that are currently in the design-in phase. Further, less significant declines were recorded in the semiconductor and hard disk subsegments. Sales in the gas metering sector bucked the economic trend and saw an increase thanks to newly initiated customer projects.

A similar situation to the one in appliances was also observed in the related consumer market. Compared to the previous year, sales in this highly fragmented market were down by 44 % to CHF 14.9 million. This market had also experienced strong growth in recent years, driven by the heightened awareness of indoor air quality. However, sales suffered from the subdued consumer sentiment world-

wide and the normalization of demand after the pandemic- related overconsumption seen in recent years. The situation was further exacerbated by inventory corrections.

Medium- and long-term outlook remains positive Despite the challenging market environment at present, we remain very positive about the medium- and long-termfuture. We continue to feel strong support from mega- trends such as energy efficiency, climate change and health, which are accelerating the increased use of sensors in a wide range of applications. Furthermore, we see a promising and well-stockedpipeline of new customer and design-inprojects in all markets, not least because of our decision to keep expanding our sales and R&D capacities last year despite the challenging market conditions.

For example, we are currently working hard to finish developing a new product family of gas leakage sensors for air conditioning systems. This promising growth opportunity has arisen from a new regulation in the US, which will introduce an additional refrigerant class for larger air conditioning systems in 2025. The coolants in the new category are less harmful to the environment, but slightly more flamma- ble. This development will give us the opportunity to introduce new and innovative leakage sensors in this market. Alongside this, we are working on numerous other design-

ins with our extensive range of environmental sensors. This supports our assessment that the entire environmental sensor sector harbors great potential for further growth over the coming years.

The implementation of our growth strategy continues to proceed according to plan. In particular, we are investing resources in the development of the next generation of particulate matter, CO2 and formaldehyde sensors. By further integrating numerous functionalities at chip level, we will be able to achieve additional key miniaturization milestones in all three product families. The product launches here remain scheduled for 2024 and 2025. With all these projects in mind, we continued to invest in stepping up our R&D activities last year despite the sharp decline in sales.

In our traditional core market of humidity and flow sensors, we want to further enhance and consolidate our already strong position as a market, cost and technology leader. In this context, we signed a strategically important partnership agreement with our former competitor STMicroelec- tronics (STM) at the start of the year. STM will integrate and offer our humidity sensors on its evaluation boards for its customers in the future. This important sales channel allows us to build on our existing leading role in this market.

We also opened a sales office in Singapore at the start of the year. This will enable us to increase our direct sales presence at global level and provide better support to our customers at local level in the Southeast Asian and Austra- lian markets. At the end of the year, we acquired additional properties in Stäfa that will allow us to increase our clean- room production capacity over the coming years in line with the expected market and volume growth.

Sustainability: a market driver and an ethical responsibility Energy efficiency and the looming threat of climate change are powerful megatrends that have been supporting our business for years. We want to continue playing a part in making our world and our lives more sustainable and resource-efficientwith our innovative sensor solutions. Another top priority in the area of sustainability is to shrink

the ecological footprint of our own business processes along the value chain. In 2023, we again made efforts to reduce our carbon emissions and water consumption.

Annual General Meeting in Rapperswil

At the Annual General Meeting 2023, all proposals put forward by the Board of Directors were approved, and all members were re-elected for a further term of office. We were particularly pleased to be able to welcome everyone in person in Rapperswil again after a four-year break due to the pandemic.

Changes on the Board of Directors and Executive Committee After years of continuity, there were two changes on the Executive Committee in the reporting year: Rahel Meuwly was appointed as the new VP Human Resources and a member of the Executive Committee as of November 1, 2023. Rahel succeeded Heiko Lambach, who has remained at Sensirion but now intends to focus on talent diagnostics and culture development after more than 12 years as VP Human Resources. This will address the growing importance of talent management and help to nurture Sensiri- on's multi-award-winningcorporate culture. Furthermore, Johannes Bleuel, former VP Operations, decided to leave Sensirion to pursue new challenges after more than 11 years with the company. He was succeeded by Franziska Brem on December 1, 2023. Franziska has spent several years in charge of Sensirion's packaging department, which plays a key role at the interface between R&D and operations.

François Gabella, a long-serving member of the Board of Directors, will no longer be available for re-election at the upcoming Annual General Meeting in May 2024. The Board of Directors proposes to the General Meeting that Henri Mrejen be appointed. After holding numerous management positions in different industries, Henri currently serves as Head of Investments at 7-Industries, one of the anchor investors for Sensirion. We would like to thank the two departing members of the Executive Committee, as well as François Gabella, for their outstanding service and commitment over the years. We wish them all the best and every success in their future endeavors.

Outlook

In a market environment that remains challenging, we expect a return to growth in 2024 as new projects ramp up. In terms of profitability, 2024 will be a transition year. The medium-term outlook remains positive due to the structural megatrends underlying the sensor market.

Visibility remains low due to geopolitical and macroeconomic challenges. We currently anticipate that stock corrections will continue to depress demand until the middle of the year (and even until the end of the year in the medical market). Against this background and given the economic weakness in key markets, we remain cautious about our existing business and foresee only a moderate recovery this year. However, we expect growth projects to make a significant contribution to sales, particularly in the second half of the year. These projects specifically include those in the automotive module area and those with innovative gas leakage sensors for air conditioning systems described above.

Despite the return to growth, 2024 will be a transition year in terms of profitability: The higher share of lower-margin module business this year, together with the continued underutilization of component production, will lead to a lower gross margin. We have therefore already initiated further measures to increase productivity on the production sites and other areas at the end of 2023, without losing focus on our strong pipeline of short-tolong-term growth projects.

Assuming the planned ramp-up of growth projects and stable exchange rates, we expect consolidated sales of CHF 250 to 280 million in fiscal year 2024 (FY 2023: CHF 233.2 million). This is equivalent to projected organic growth ranging from 7 % to 20 % compared to 2023. We expect the gross margin to be between 47 % and 49 % in 2024. As a result, the EBITDA margin will improve to 5-10 %.

Many thanks to all our employees

On behalf of the Board of Directors and the Executive Committee, we would like to say a heartfelt thank you to all Sensirion employees for their hard work, flexibility and loyalty. 2023 was also a challenging year for our employees, not just for the company. Many of them had to show great flexibility to adapt to the rapidly changing economic environment. One particularly proud moment came in May 2023, when we were recognized once again by "Great Place to Work" as one of Switzerland's best employers in the "Large Workplaces" category. This award reflects our special corporate culture that attracts talented individuals and offers them opportunities to develop. We will continue to foster this culture going forward.

Last but not least, we would like to thank you, dear shareholders, for the continued trust and loyalty you have shown our company this year.

Customer markets

Automotive

In the automotive market, revenue amounted to CHF 72.5 million, which corresponds to an increase of 11.3 % compared to 2022, accounting for 31.1 % of the group revenue. Both the component-based Tier 2 business as well as the Sensirion Automotive Solutions Tier 1 business contributed to the growth.

Revenue development in CHF million

65.12022

72.52023

In 2023, Sensirion's Tier 2 business grew moderately, mainly driven by gas flow sensors which are located in combustion engines' air intake along with humidity sensors to further improve precision control of the combustion process.

The main growth driver, the Tier 1 business, was driven by the uptake and launch of new module projects by Sensirion's European and Korean OEM customers. The market for sensor solutions and applications, such as engine control, anti-fogging,dew-point, vehicle interior air quality (VIAQ) covering CO2, RHT, and PM2.5 sensors, is growing, and Sensirion as development partner continues to develop component and module projects according to the specified requirements.

While the European business shows good growth, we continue to experience the expected slowdown of demand coupled with currency headwinds in the South Korean market.

Reducing emissions, saving energy and increasing passenger safety and comfort are the main drivers behind Sensirion's sensors being used in the automotive segment. The passenger cabin climate can be controlled and the windshield automatically defogged by incorporating humidity sensors either directly at the windshield or in the dashboard - or by using a combination of those two options. Sensirion continually expands its environmental sensor portfolio, which is the foundation for continuing our success as direct supplier and development partner to automotive OEMs. Our sensor portfolio can be fitted into technology platforms and supports the strategy of OEMs to continuously decrease emissions and increase energy savings, safety and comfort.

Success in the automotive market depends on meeting rigorous product reliability, process quality and customer proximity requirements. Accordingly, Sensirion's automotive products meet the quality requirements set out by the Automotive Electronics Council (AEC-Q100), and Sensirion's manufacturing sites in Switzerland, Hungary, China and South Korea are certified to the stringent international automotive standard IATF 16949. Increased awareness of health, related economic benefits and climate matters are helping to speed up the shift from combustion engines to hybrid and electric vehicles.

Sensirion is convinced that it will benefit from this shift in the medium to long term through the penetration rate of sensors in auto-defogging and climate control applications as both applications can help to extend the range of an EV if assisted by smart sensor solutions.

Moreover, we believe that vehicle interior air quality (VIAQ) covering CO2, RHT and PM2.5 sensors will become more important, ultimately mainstream, independent of the drive mode.

As modern cars gradually transition from combustion engines to BEVs (battery electric vehicles), basic driver assistance evolves towards fully autonomous driving and future technologies such as Advanced Driver Assistance Systems (ADAS) and Battery Management Systems (BMS) gradually unfold.

The journey to autonomous driving is marked by a six-level scale defined by SAE International (Society of Automotive Engineers): 0 No automation, 1 Driver assistance, 2 Hands off, 3 Eyes off, 4 Mind off, 5 Steering wheel optional. Along this journey, water ingress and humidity are critical issues affecting not only performance, but they also pose a risk of corrosion to the electronics over time. By integrating our sensors into ADAS, Sensirion, as a development partner, can safeguard these risks and ensure safety and reliability across the life cycle of the product.

Medical

In the medical market, revenue amounted to CHF 44.9 million (2022: CHF 76.1 million), declining -41.0 %year-on-year, contributing 19.2 % to group revenue.

Revenue development in CHF million

In 2022, Sensirion recorded extraordinary revenue totaling CHF 28.3 million for sensors sold for home care sleep apnea (CPAP) devices. This was triggered by a major recall issued by a large CPAP manufacturer due to quality issues that were not caused by a Sensirion sensor. When adjusting 2022 for these special effects, the underlying medical revenue declined by CHF −2.9 million or −6.1 % to CHF 44.9 million (2022 adj.: CHF 47.8 million).

The full year decline was caused by a weak second half of 2023 driven by stock level optimizations across the industry, which more than offset the strong growth in the first half of 2023 related to high demand from China and to large extended stock building across large customers. It is expected that medical market stock optimization will level off towards the end of the first half of 2024.

In the medical market, Sensirion's sensor solutions are used first and foremost in human respiratory applications. A ventilator or respirator is used for life support in emergency situations. In ventilators used in intensive care units (ICU) of hospitals and mobile ambulances, gas flow sensors and gas flow meters measure the flow into and out of the patient. This is performed at one, two or three locations within the system. In expiratory and inspiratory flow, the air flow out of and into the patient is measured in the ventilator. In the case of proximal flow, the flow is not measured in the device, but close to the patient. Consequently, Sensirion supplies customers with up to three gas flow sensors per ventilator.

Apart from ventilation, the other important medical applications include continuous positive airway pressure (CPAP) devices to treat sleep apnea and anesthesiology devices. In CPAP devices used in home care settings, gas flow and humidity sensors enable them to maintain the correct air flow into the patient and control humidification, thus helping the patient to sleep better and wake up feeling more rested in the morning.

In anesthesiology, Sensirion's mass flow meters play a mission-critical role to correctly dose the applied amount of the anesthetic agent.

In the future, other applications centered around real-time monitoring of gases and liquids entering and exiting patients might emerge, in areas such as smart inhalers, drug delivery or monitoring devices.

Industrial

In 2023, the diverse industrial market left its multi-year growth trajectory and revenues declined to CHF 101.0 million, which corresponds to a −34.4 % decrease compared to 2022 and accounts for 43.3 % of group revenue.

Revenue development in CHF million

The decline was primarily driven by the appliance and HVAC (heating, ventilation, air conditioning) busi- ness. Both market segments have shown high growth rates in the last two years and benefited from the greatly increased sensitivity to indoor air quality solutions caused by the pandemic. In 2023, this excess demand normalized and led to a temporary dip in demand after the boom years. This market pattern was coupled with high inventory levels throughout the entire value chain, which are being reduced slowly. The sharp decline in sales is solely driven by the economic situation; Sensirion has not lost any customers or projects in this market segment. We currently assume that the inventory corrections should be completed during the first half of 2024.

In addition, Sensirion is working on numerous design-in projects that will drive business once the drop in demand and warehouse optimization have come to an end. All these future projects are proceeding according to plan.

In the appliance market, application drivers are optimized energy consumption and increased comfort. Applications include incorporating humidity sensors into refrigerators to optimize energy consumption, using air quality sensors in air purifiers to improve detection of harmful gases and pollutants, and finally, installing CO2 sensors in air conditioners for enhanced efficiency in room ventilation based on actual occupancy and related CO2 levels. In 2023 and in the near future, sensor modules that are comprised of

a combination of various sensor components such as humidity, total volatile organic compounds (TVOC) and PM2.5 are expected to be a major pillar of growth for the home appliances market.

In addition, in the appliance market, Sensirion is further developing its sensor portfolio by revolutionizing electrochemical sensing and developing a next generation of formaldehyde sensor which is especially designed for indoor air quality monitors and air purifiers.

In the heating, ventilation and air-conditioning (HVAC) segment, sales declined due to the beforemen- tioned factors. Despite the temporary setback, the growing awareness of clean indoor air and the desire to reduce emissions and save energy supported by our growing environmental sensor portfolio will continue to pave the way for further growth in future.

Also in this market segment, Sensirion is working on numerous design-in projects that will start to drive business in the years to come. More specifically, Sensirion R&D, Operations & Commercial teams have been working relentlessly on a new product family of gas leakage sensors for air conditioning systems during 2023. This promising growth opportunity stems from a new Environmental Protection Agency (EPA) regulation in the U.S. that will require a new class of refrigerants for larger air conditioning systems. Starting 1 January 2025, the regulation requires that air conditioning systems operate with a new refrigerant class which is less harmful to the climate (lower global warming potential) but, on the other hand, is more flammable. During the lifecycle of an air conditioning system, refrigerant leakage is a critical issue affecting not only performance, but also posing a significant risk of fire over time. By integrating our gas leakage sensor modules into an air conditioning system, Sensirion, as a development partner, can safeguard the risk and ensure safety and reliability across the lifecycle of the product.

Against the general trend, revenue in the smart gas meter market showed good growth driven by new customer projects. While the gas metering market is generally slow to adapt to new technologies, Sen- sirion has been able to prove the readiness of smart gas metering and will continue to support the market's transition to smart gas metering with suitable products. Sales of humidity sensors for the hard disk segment declined as expected. The transition to innovative storage technology for our customers will impact near-term demand. Further development of this market is complex and monitored as the shift from magnetic based to solid-state drives is still ongoing.

Consumer

In the consumer market, revenues decreased to CHF 14.9 million, corresponding to a −44.4 % year on-year decline and accounting for 6.4 % of the group revenue.

The consumer market saw strong growth during the pandemic, driven by increased awareness of indoor air quality. This has led to overconsumption and up-stocking across the supply chain. Revenues in 2023 are therefore impacted by both ongoing inventory corrections as well as weak end consumer demand following economic uncertainties.

Sensirion is a development partner for several international OEMs which have project pipelines for innovative indoor air quality devices and apps to address growing demand for various types of air quality monitors. Even though several projects have been postponed or have been put on hold, we expect that our expanding environmental sensor portfolio covering CO2, RHT and PM2.5 (particulate matter) sensors will continue to enable the realizations of cost-efficient, innovate devices and apps for our customers.

In the fast-moving consumer segment, Sensirion is further developing its sensor portfolio by revolutionizing electrochemical sensing and developing a next generation of formaldehyde sensor which is especially designed for battery-powered indoor air quality devices.

The pandemic has illustrated the importance of indoor CO2 monitoring - not only for well-being but for optimized ventilation, too - and accelerated the development of global standards. Therefore, as of 2023, we also ensure that our sensors are harmonized with RESET and WELL building standards.

The goal of the WELL Standard is to enhance people's health and well-being in the built environment. It is an evidence-based rating system that ensures occupants' health and well-being by measuring, certifying and monitoring the building features.

The RESET standard stands for "Regenerative, Ecological, Social & Economic Targets" and is a sensor-­ based performance-driven data standard and certification system that requires the data to be sent to the cloud and the results to be communicated with the building users. More specifically, RESET Air is one of the modules of this standard which is currently available to the projects for certification. The RESET Air standard sets out the requirements for continuous monitoring of air quality of an interior space/building which includes deployment of monitors, collection of monitor data and reporting of results. The air quality monitors are required to measure parameters, such as particulate matter (PM2.5), CO2, total volatile organic compounds (TVOC), places where combustion exists (CO), temperature and relative humidity.

Sensirion empowers its customers to offer solutions that comply with RESET and WELL standards, contributing to the global initiative for heightened awareness and improvement of indoor air quality. In addi- tion, we hold a seat on the WELL Air Concept Advisory board (consisting of scholars and industry repre- sentatives) that provides guidance on how WELL can incorporate building interventions that promote high levels of air quality, thereby making sure that WELL takes into consideration the latest advances in sensor technologies to assess and control indoor air quality.

Finally, as increasing urbanization drives heavy traffic situations and global warming promotes heat waves that increase the number of wildfires breaking out around the globe, both trends are boosting demand for Sensirion's proven environmental sensor portfolio.

Strategy

Our growth strategy has three strategic focuses: driving our market and cost leadership in the core markets of humidity and flow, becoming market leader in the entire environmental market and developing technologies for long-term growth. Finally, our unique culture of innovation and entrepreneurship serves as the foundation for these objectives. This strategy aligns with prominent megatrends such as enhanced energy efficiency and quality of life, escalating digitalization and automation, and a heightened emphasis on environmental protection.

Cultivating excellence: the essence of SensiSpirit

Our distinctive corporate culture, known as "SensiSpirit", is the result of the entrepreneurial and collabo­ rative mindset embraced by our exceptional workforce at Sensirion. To ensure we stay innovative and agile, our aim is to continue attracting highly qualified talent in all fields. We want our award-winning company culture to keep evolving because it optimizes the hiring process, improves employee retention and helps create the ideal environment for long-term innovation.

Driving technology and cost leadership in our core markets: humidity and flow

Strategic focus

01

Drive market and cost leadership in our core markets of humidity and flow

03

Develop technologies for long-term growth

03

02

Become market leader

in the entire environmental market

01 02

Fundamentals

SensiSpirit

Unique culture of innovation

and entrepreneurship

Our aim is to become an even stronger market leader in the area of humidity and flow sensing across our various end markets and applications. In sectors where we already hold a dominant market pres- ence, we seek to solidify our leadership through a combination of cost efficiency and technological advancements. Elsewhere, the objective is to expand market share by rolling out innovations and next-generation products while maintaining long-standing, trusting customer relationships and expanding our customer base. In customer acquisition, our focus is on collaborating with leading and innovative manufacturers. We aim to boost volume across all humidity and flow segments in order to leverage economies of scale in both development and manufacturing. In addition, our robust market position also offers a strategic entry point for the introduction of additional environmental sensors, enhancing our presence in customer applications.

Aiming for the top: leadership in the environmental market

Leveraging our strong market position in humidity and flow sensing will allow us to become a market leader in the entire environmental sensor market. In the first completed stage, we introduced a first generation of sensors for carbon dioxide (CO2), particulate matter (PM2.5), formaldehyde and volatile organic compounds (VOC). The development priorities were to speed up time-to-market and rapidly gain market share. Accordingly, these generations were built using existing technology platforms. In the next stage, we plan to introduce a miniaturized second generation of these sensors, based on our entire technology value chain. We have already launched these in the case of CO2 and VOC, and we expect new

PM2.5 and formaldehyde sensors to be ramped up in 2024 and 2025, respectively. Enhancing innovation through miniaturization and cost optimization is essential for securing and expanding market share.

Furthermore, we will leverage our in-house technologies to efficiently develop new sensors for monitoring other gas parameters. Finally, we plan to expand our range of combo modules for various environmental sensors, unlocking possibilities for new applications and increasing customer content.

Propelling long-term growth through new technologies We will continue investing in fundamental technological innovation to achieve sustainable company growth by systematically exploring and assessing new sensor technolo- gies, applications and market opportunities. There are two primary avenues for ensuring long-termgrowth: firstly, to

expand our product portfolio beyond flow and environmental sensing by mobilizing our core competencies across the entire value chain. Secondly, we will expand to offer high- end solutions in certain fields. To uncover new growth opportunities, we will closely monitor the entire sensor market, identify emerging trends and adapt to evolving customer demands.

Furthermore, we have implemented a systematic strategy for M&A activities to enhance our strategic growth areas. Leveraging our connections with the global and local startup community, we aim to identify cutting-edge sensor technologies and strategically acquire technologies, companies or manufacturing capacities that enhance and fortify our competitive standing.