More than Hazardous Reactions. 2023/24 2023/24 2023/24 Condensed Condensed Annual Report Annual Report Annual Report

3 DOTTIKON ES Condensed Annual Report 2023/24

Content

5 Summary/Outlook DOTTIKON ES Group Condensed Annual Report 2023/24

Dear Shareholder,

Herewith we present to you DOTTIKON ES Group's Condensed Annual Report 2023/24 for the period from April 1, 2023, to March 31, 2024.

At the same time, Dottikon ES Holding AG publishes the "Sustainability & Corporate Responsibility Report 2023 – Reporting on Non-Financial Matters" for DOTTIKON ES Group, approved and signed by the Board of Directors. DOTTIKON ES thus fulfills the non-financial reporting requirements that apply for the first time from the beginning of this year. As required by law, this report will be subject to your approval as shareholders at the upcoming Annual General Meeting.

We dedicate the illustrated book published along with this year's Annual Report to the professional craft and to the people who, despite machine support, process materials with a considerable amount of skilled manual labor to create and produce valuable pieces of work and constructions for use: The Masters of Manufacturing. The people who pour concrete, assemble steel girders, weld pipes, or install equipment, and those who manufacture active pharmaceutical ingredients using the production facilities ultimately built. These craftsmen perform the reality check from the theoretical plan to practical feasibility in detail. It is thanks to their wealth of experience that non-functioning and unrealistic details from the theoretical detail planning are corrected in the plan of execution, just before they would be implemented with fatal consequences for use. It is the execution planning of and the execution by these professionals that ultimately assures usability, quality, and cost-effectiveness in practice. The real skills labor shortage is among experienced professionals who understand their craft and execute it correctly: The craftsmen! This also includes our employees in the mechanical workshop and chemical operators in production – our manufacturing. Their number, skill sets and qualifications will be a critical economic and military success factor for our society's future prosperity against the backdrop of the geopolitically driven repatriation of manufacturing by means of near- and reshoring as described in the following.

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Photographer Pierluigi Macor has accompanied the construction of the new API production facilities at our site in Dottikon (Aargau, Switzerland) over the past three years. He has captured impressions and thus created his own "BAUWERK" (German for Construction/Opus), which ranges from surreal to very human.

We thank Peter Wanner for his support in making the first BAUWERK images available to a wide audience via his Aargau-based media publishing house in the run-up to this publication. Photographs from Pierluigi Macor's BAUWERK will be on display around our company premises at Hembrunnstrasse 17, 5605 Dottikon, Switzerland, from May 29, 2024, for a few months in a 1-kilometer open-air exhibition (www.freiluftausstellung.ch).

Review

In the business year 2023/24, sales growth was limited by the available production capacities. The lower margins resulted from ongoing upfront expenditures in the buildup of production staff for the commissioning and operation of the new production plants in order to resume the sales growth in the ongoing business year 2024/25.

At CHF 326.3 million, net sales were 2.1 percent higher in the business year 2023/24 than in the previous year and were broad-based in terms of products and customers. Semi-finished and finished goods decreased by CHF 5.3 million. Other operating income was CHF 0.6 million lower than in the previous year at CHF 8.7 million. At CHF 103.8 million, material expenses were up 1.2 percent compared to the previous year and represented 32.3 percent of the

KEY FIGURES, APRIL–MARCH

production output – net sales plus inventory changes in semi-finished and finished goods (previous year: 31.0 percent). Personnel expenses rose by CHF 5.7 million or 7.0 percent to CHF 87.7 million in the business year 2023/24. The average staff number increased by 4.3 percent to 726 full-time equivalents, with the remainder of the increase in personnel expenses being attributable to higher salaries. In combination with other operating expenses of CHF 27.7 million, CHF 11.1 million lower than in the previous year (previous year: ongoing costs and provisions made for burdened soil), EBITDA was CHF 110.5 million, 5.2 percent lower than in the previous year, with an EBITDA margin of 33.9 percent (previous year: 36.5 percent). Depreciation and amortization were nearly unchanged compared to the previous year. At CHF 89.8 million, EBIT was 6.4 percent lower than in the previous year, with an EBIT margin of 27.5 percent (previous year: 30.0 percent). At CHF 2.7 million, the financial result was CHF 4.7 million higher than in the previous year, mainly due to higher employer contribution reserve valuations and higher interest rates for fixed deposits. After the result of associated companies and higher income taxes related to the extraordinary effect of the previous year's one-time revaluation of deferred tax liabilities due to a lower income tax rate, net income was CHF 80.6 million, 8.1 percent below the previous year's CHF 87.7 million, with a net income margin of 24.7 percent (previous year: 27.5 percent).

Compared to the previous year, cash flow from operating activities rose by around CHF 13 million to CHF 102.7 million, mainly due to a less pronounced inventory buildup. Cash outflow from high investment activities was CHF 160.1 million in the reporting year 2023/24, 17.4 percent higher than in the previous year. As planned, a further CHF 40 million from the committed loans were drawn. At the end of the business year, non-current interest-bearing financial liabilities amounted to CHF 100 million. The equity ratio was at 74.3 percent. Cash and cash equivalents and current financial assets were CHF 200.6 million at the end of the business year 2023/24.

8 Summary/Outlook DOTTIKON ES Group Condensed Annual Report 2023/24 9 Summary/Outlook DOTTIKON ES Group Condensed Annual Report 2023/24

Geopolitical situation

In the context of the geopolitical power struggle between the United States and China for world supremacy, a world order along two blocs is emerging, increasingly characterized by a progressive partial division of the global economy. On the one side, there is a Western bloc, dominated by the United States and Europe with their respective partner states with a Western political character. This bloc distances itself politically and economically from Russia, and increasingly also from China. On the other side, there is a newly formed Eastern bloc, an alliance around China with Russia, North Korea, and Iran, as well as other economically opportunistically driven partner states that act on common anti-Western, anti-US, or anti-Israel principles. The Western bloc is attempting to maintain its exorbitant social welfare through global economic and moral supremacy. The members of the Eastern bloc, on the other hand, focus on a mutual exchange of military weapons, technology, energy, or further goods. The joint goal is the destruction of the United States' hegemonic power, or at least the binding of the United States' powers outside their own respective area of interest. All this with the sole purpose of each member of this Eastern bloc to create a more advantageous starting position for themselves to better implement and enforce their own regional or even global particular interests without having to fear interference from foreign "world guardians".

This results in the following three strategically relevant main conflict zones for the geopolitical future development: First, the Eastern European front with Poland, the Baltic states, and the Baltic Sea region with Finland, Sweden, and Norway, as well as Ukraine, with which Russia is already at war. Second, the Asia-Pacific region with the heavily armed opponents North Korea and South Korea, Japan, and the South China Sea with China, heavily armed and dominant, and the two threatened countries Taiwan and the Philippines. Thirdly, the Middle East, with Israel currently at war with the Palestinians through Hamas, Saudi Arabia and Iran struggling for regional supremacy with the militias and rebel groups supported by them, as well as Turkey.

The main exponents of the newly formed Eastern bloc, Russia and China, have clearly defined priorities. For Russia, the focus is on territorial expansion toward the west along the Eastern European front. The natural opponents in this endeavor are Ukraine and the European NATO members. The United States is shifting its strategic center of gravity, which it had maintained for decades, from the Eastern European front and the Middle East to the Asia-Pacific region. For China, the Asia-Pacific region has priority. North Korea and South Korea are important arms suppliers to the Eastern bloc and the Western bloc, respectively. North Korea and Iran deliver vast amounts of weapons and ammunition to Russia in exchange for Russian oil supplies and arms technology. Ukraine, on the other hand, is supplied with weapons and ammunition indirectly from South Korea via restocking procedures in rotation through the limited stocks of the United States and Europe. A potential military escalation between North Korea and South Korea would therefore weaken both the Western bloc and Russia, which is of interest to China. In addition, China is also interested in tying up the United States in Europe via NATO, so that it has a freer hand to promote its interests in the Asia-Pacific region. In addition, the reduced strategic interest of the United States and Europe in regions rich in raw materials in the Middle East, Africa, and parts of South America has caused unrest and coups to flare up again there. Iran is using this to its advantage in the Middle East: It expands its spheres of influence and is at war with Israel indirectly and recently also directly. China and Russia, meanwhile, use the situation in Africa and South America to expand their respective spheres of influence there and, in China's case, also to secure access to important raw materials. Russia promotes refugee flows from Africa to destabilize Europe. It is in this tense, unsettling global situation that half of the world's population in countries that account for a combined 60 percent of the economic output is asked to cast their votes. One of the most important elections with great geopolitical impact and uncertain outcome is the presidential election in the United States.

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Risks in value chains and structurally rising costs

The end of the Cold War 35 years ago was followed by several decades of an almost conflict-free, global and rapidly expanding and interconnected economic phase of prosperity. Many companies used this time for rapid value gains based on global economies of scale, through specialization and consolidation of value chains and their segments as well as the global outsourcing and concentration of production steps on a limited number of suppliers in low-cost countries. Research and development for long-term, sustainable innovation, proprietary production, as well as strategic supply security were carelessly neglected and fell prey to short-term profit seeking. Governments allowed themselves to be seduced by the tempting ideology of a forever conflict-free world with eternal growth in prosperity built on escalating national debt. With rising interest rates, the interest burden on the related government debts increases with every refinancing round and new loan. The elected politicians in their positions of power continue to promote social welfare and favor the particular interests of a vast number of broadly diversified interest groups. Society, or their elected leadership, got lost in this instead of strategically focusing their activities on fulfilling the state's core tasks and securing the sustainable common good. The deliberately grossly negligent lack of military spending led to a loss of resilience and defensibility. The Western bloc is not able to supply Ukraine with sufficient weapons and ammunition without further depleting its own strategic reserves, which had been too low even before the outbreak of the war. The arms industry in the West is not ready for wartime economy, nor is it geared towards this goal, and the necessary suppliers such as heavy industry are often no longer available: The moralizing environmental and energy policies have driven them away. Misty-eyed by social welfare, the increasingly selfish population has not yet grasped the gravity of the situation and has so far shown little willingness to limit itself personally in favor of the common good, to work hard and longer and to commit to the long-term safeguarding of independence, freedom, and prosperity. The majority of politicians shy away from taking on the uncomfortable role of leadership, to face up to reality and usher in the change. The main drivers of today's debt are

social spending, state subsidies and transfers, the massive reduction of which is much more difficult to enforce politically as well as socially and will inevitably lead to higher taxes and a reduction in social security.

In the meantime, inflation has fallen again following the price shock caused by disrupted supply chains but remains stubbornly above the central bank target of 2 percent in both the United States and Europe and rose again in the United States at the end of the first quarter of 2024, contrary to widespread expectations. In the medium term, structural costs will continue to rise because of the politically driven energy transition in combination with the Ukraine war, as well as excessive bureaucracy and overregulation, net-zero targets for greenhouse gas emissions and the elimination of the self-regulating market forces. The estimated cost of capturing and storing CO² by 2050 was recently increased from the amount of CHF 100 to a range of CHF 200 to CHF 800 per ton. Today's price for carbon emission allowances stands at around CHF 50 to CHF 70 per ton. The CO² capture and storage capacities to achieve net zero are not available today and are not on the horizon for the coming years. The decision by the Board of the Science Based Target Initiative (SBTi) to approve controversial CO² certificate offsets as Scope 3 savings is living proof of this. In combination with the strategic efforts to decouple and reduce geopolitical risk, especially the high economic dependence on China, which are being driven by the United States and are now also intensifying in the EU, structural costs will continue to rise, and inflation will increasingly turn into a cost-driven price inflation. The high degree of specialization, concentration, and organization of the global value chains and their segments bear an immense risk of economic, technological, and cultural loss amid military and economic escalation between the geopolitical centers of power. This awakens the need for a reduction in geopolitical dependence and a corresponding realignment of interest linkages. For this reason, the material economic disentanglement between rival parties is mutually pursued and promoted. Implementing the respective steps is a demanding, lengthy, and costly process, especially for globally positioned large companies. Values such as consistency, trust, and reliability as well as cultural regional anchoring and proximity are an important trust base for building new or expanding existing business as well as political relations. Therefore, repatriation through near- and reshoring continues.

The value chains for sensitive goods are given a strategically broader regional base in the interest of achieving greater supply security, even at higher costs. For the coming decade, reindustrialization – and hence the demand for (fossil) energy – will increase substantially in Europe and North America. Only those who explore, mine, extract, and manufacture will have unrestricted access to goods. Therefore, multinational companies are starting to implement a "China plus one" strategy in their value chains. In other words, they get ready to being able to quickly switch to two independent value chains in the event of a conflict – one for the West and one for China. A strict disentanglement of the United States from China would have massive costs for the global economy. To combat such cost-driven inflation, interest rate hikes are but a blunt weapon. Today's interest rate levels are already shedding light on the risks in real estate and bank balance sheets that have been building up over the past few years. This poses a considerable risk of another global banking crisis for the already struggling global economy.

Biopharmaceutical market

Demographic developments of an increasingly aging population with the associated rise in drug demand especially in developed countries with high purchasing power, the accelerated market approvals for novel drugs, the growth of biosimilars and generics as well as government attempts to reduce drug prices and health care costs remain key medium- and longterm volume growth and innovation drivers in the biopharmaceutical market. The pandemic has made people increasingly aware of their state of health. When people notice symptoms, they are now likely to see a doctor earlier and more often, which potentially also leads to the early detection of illnesses such as cancer with earlier, more effective, and at the same time longer-lasting therapies. This results in a stronger volume growth of established drugs than in previous periods.

Global drug sales growth in terms of list prices is estimated at 5 to 8 percent in the coming five years, 2 percentage points higher than a year ago. In 2023, global sales market was around CHF 1'350 billion, with small-molecule active pharmaceutical ingredients (APIs) accounting for 65 percent of this sum or CHF 910 billion, with expected annual growth rates of 6 percent. Novel drugs, in turn, account for CHF 460 billion or around half of these small-molecule API sales. Annual sales growth of these novel small-molecule APIs is around 7 percent. In the largest drug sales market, North America, with the United States holding a market-dominating share of over 45 percent, the drug sales market in terms of list prices will grow by around 7 percent over the coming five years and, with the Inflation Reduction Act (IRA) taking more effect, sales growth after discounts and deductions is expected at between 2 and 5 percent. Until the end of the five-year period, discounts and deductions are expected to increase from currently 37 percent to around 47 percent. Moreover, the IRA measures will significantly shorten the economically profitable life cycle for certain products. This leads biopharmaceutical companies to focus their strategy in the United States on initial launches in large indication areas with higher pre-launch investments and earlier patient activation. For the second-largest market in terms of drug sales, Western Europe, growth is expected at around 5 percent, and in the third-largest market, China, the expected growth rate is around 4 percent. Oncology, immunology, and endocrinology with its subcategory diabetes are the largest indications. Oncology has seen strong growth for years. With a share of roughly 15 percent of global sales, oncology is the largest indication area with expected annual growth rates of around 15 percent in the coming five years. This is set to result in a market share of around 20 percent. Over the coming five years, around 100 new oncology drugs are expected to be launched. Global oncology drug sales will grow by more than CHF 200 billion over the coming five years. Relative growth in immunology and diabetes is expected to be significantly weaker in this period than over the past five years, but their absolute growth contribution will remain significant, nonetheless. On the other hand, stronger growth is now forecast for the mental health segment than in the past. The indication area of obesity is expected to continue to show strong annual growth rates of around 25 percent. The respective market volume exceeded CHF 20 billion already in 2023 and will, depending on the distribution and remuneration of applications, double or increase up to six-fold over the next five years. At present, 8 drugs for obesity are on the market, with a further 300 currently in development, most of them in the preclinical phase. Of the 124 obesity drugs in the clinical phase, 55 percent are in Phase I. 46 percent of the obesity drugs in the clinical phase are oral drugs and therefore often small molecules with better application convenience. 8 drugs are currently in Phase III, the last step before an application for market approval.

The overall growth of the drugs market is the result of a constant influx of new innovative drugs and the loss of exclusivity for established drugs.

Global biopharma funding has clearly recovered in 2023 on the back of higher follow-on capital. IPOs, on the other hand, remain challenging in the current interest rate environment. M&A activities soared compared to the previous year due to lower biotech company valuations but remained clearly below the record levels seen in 2019. The current market environment of high interest rates, lower biotech company valuations, and difficulty in raising capital for early-stage development projects is favorable for established biopharma companies. They will continue to use the lower valuations for acquisitions and in-licensing of innovative drug candidates to refresh their development pipelines. Research and development expenses of the 15 largest biopharma companies reached a 10-year high. In 2023, 69 new drugs were launched worldwide. In other words, the growth trend of new drug launches worldwide continues at pre-pandemic levels. The United States launched a total of 57 new drugs, China 33, and Europe (EU4 plus UK) 22 in their respective markets. Of those, the United States launched 45, China 17, and Europe (EU4 plus UK) 1 exclusively for the home market. Considering the well-furnished development pipeline, around 65 to 75 new drug approvals are expected annually for the coming five years.

Over the course of the last year, China has strengthened its market position in terms of innovative strength in a global comparison, albeit with a predominantly domestic market focus. As geopolitical developments are making it increasingly difficult, both economically and politically, for Western biopharmaceutical companies in China and for Chinese biopharmaceutical companies in the West to launch drugs, these two markets appear to be drifting apart. In some cases, the rights to drugs are sold or out-licensed to a biopharmaceutical company in the other region in order to come to terms with this development. Chinese national security laws also make it difficult to use clinical development data outside of China. Both in China and in the United States, it is becoming increasingly difficult to use data collected in clinical studies in the other country for market approval purposes. This makes additional clinical studies necessary to get a drug ready for market approval in the other market. The counter-espionage law enacted in China is so vaguely worded that any gathering of information is potentially punishable by law. In addition to clinical trial data, this also includes private company audits or legally required inspections of suppliers in the manufacture of drugs. The BIOSECURE Act passed by the US Senate Homeland Security and Governmental Affairs Committee by a vote of 11 to 1, would prohibit biopharmaceutical companies from using the services of certain foreign Custom Development and Manufacturing Organizations (CDMOs) and Clinical Research Organizations (CROs) for security reasons. This targets the most important Chinese biotech and genomics pharmaceutical suppliers, which are mentioned by name in the bill. The United States claim that these Chinese companies pose a risk to US national security because they allegedly conduct joint research with, are supported by, or have links to the Chinese military, internal security forces or intelligence services. This development is forcing Western biopharmaceutical companies to reduce their dependence on China or even to completely unbundle their value chains from China.

The improved molecular biological understanding of the human metabolism and the improved early scientific selection of working drug candidates, the accelerated market approval, and higher drug sales growth with attractive return prospects for innovative drugs will all contribute to an increased number of novel drug candidates and new drug approvals in the coming years. The increasingly specific and more targeted drugs lead to more complex and longer

16 Summary/Outlook DOTTIKON ES Group Condensed Annual Report 2023/24 17 Summary/Outlook DOTTIKON ES Group Condensed Annual Report 2023/24

manufacturing routes, which results in a higher number of production steps under the strongly regulated good manufacturing practice (cGMP) quality standards for the production of APIs. The geopolitical disentanglement shifts API and drug manufacturing closer to their respective sales markets. Consequently, the need and demand for high-quality development and production capacities continue to rise. This results in high demand for high-quality, technologically versatile chemical process development and manufacturing capacities for biopharma APIs. This holds particularly true for small molecules, an area in which, compared to biologics, little has been invested in terms of new capacities in the recent past. At the same time, regional demand for chemical development and manufacturing capacities will continue to increase due to the geopolitical decoupling currently underway in other industries.

Outlook

DOTTIKON ES has started preparing for the expected increase in demand for chemical development and manufacturing capacities related to stricter regulatory requirements, innovation, and near- and reshoring years ago. In a first phase, it invested in additional development and quality management capacities. In a second phase, production capacities in existing plants were expanded and bottlenecks were eliminated through targeted investments in order to increase their output. In the current third phase, DOTTIKON ES focuses on the construction of new chemical production and small-molecule API drying plants, new warehouse capacities, and an expansion of the infrastructure. The photovoltaic systems, redundant grid connections, and a backup electricity supply plant currently under construction with planned commissioning in the business year 2024/25 will increase the self-sufficient electricity supply in a shortage situation.

DOTTIKON ES invests a total of around CHF 700 million in new production and drying plants for APIs as well as in infrastructure – CHF 400 million of which have already been invested in the past years, with a further CHF 300 million following in the coming years, about half of which in the current business year 2024/25 – and will create over 200 new jobs in Research and Development, Production, Quality Management, as well as Technology and Engineering at its production site in Dottikon (Aargau, Switzerland). The new API drying plant and chemical multipurpose production plant will become operational in 2024 and 2025, respectively. This will almost double the available high-quality production capacity at the site and allows to capture disproportionally high market growth in the custom process development and manufacturing of innovative patent-protected small-molecule APIs. Subsequently, the construction of a new chemical pilot plant for APIs will begin. For the ongoing full business year 2024/25, investments will remain high. The one-site strategy – strategic partner and specialist for hazardous reactions – is reaffirmed: By using enabling technology, we develop and manufacture high-quality, demanding chemical products safely and efficiently.

We cultivate an integrated partnership with our customers. By applying our full development and manufacturing capabilities, we support our customers in the successful execution of their strategy. In doing so, we create more value for our customers than our competitors. We continue to focus on safety, quality, reliability, high flexibility, and speed, and are thus strengthening our position as strategic development and manufacturing partner. Our one-site strategy allows reduced decision and communication pathways. This ensures rapid and efficient project development and management, clear and transparent data and process documentation, and close customer communication. Our safety culture created over more than 110 years guides the innovative use of hazardous reactions, low-temperature and high-pressure chemistry, as well as continuous processing in order to challenge, tighten, or shorten conventional chemical synthesis routes, improve selectivities, yields, and purities, as well as avoid and reduce energy consumption, waste, and CO² emissions sustainably. The versatile technology and equipment portfolio is used, maintained, and continuously expanded to design, develop, and optimize chemical processes and technical manufacturing procedures for the rapid scale-up from kilograms to multi-tons in order to produce and deliver the respective market volumes.

18 Summary/Outlook DOTTIKON ES Group Condensed Annual Report 2023/24

The small molecule pharma/biotech API market is and remains our main market with ongoing profitable growth potential. Through efficiency enhancement, the utilization of existing plants is kept at a high level until the additional new plants become operational. Qualified production personnel for the new API plants, which will become operational soon, is being recruited and trained. In order to secure long-term diversified growth, we continue to develop new, innovative products with our independent Performance Chemicals unit to satisfy currently unmet market needs outside the pharmaceutical market and bring these products closer to market readiness. The Performance Chemicals team also pursues opportunities in the industrial chemicals sector.

For the ongoing full business year 2024/25, with the start of operations in the new plants, we expect to resume growth and net sales above the previous year's figure.

Dottikon, May 17, 2024

Dr. Markus Blocher

Chairman of the Board of Directors

21 Condensed Annual Report 2023/24

Group Financial Statements DOTTIKON ES Group

Notes 2022/23 % 2023/24 %

Consolidated Income Statements

April–March CHF thousand and % (condensed)

22 Group Financial Statements DOTTIKON ES Group Condensed Annual Report 2023/24 23 Group Financial Statements DOTTIKON ES Group Condensed Annual Report 2023/24

Consolidated Balance Sheets

CHF thousand and % (condensed)

24 Group Financial Statements DOTTIKON ES Group

Condensed Annual Report 2023/24

2023/24

2022/23

Consolidated Cash Flow Statements

April-March CHF thousand (condensed) ^Reporting year 2023/24: includes subsidies received for property, plant and equipment of CHF 215 thousand (previous year: none)

Notes

25 Group Financial Statements DOTTIKON ES Group

Condensed Annual Report 2023/24

Consolidated Statements of Changes in Equity

CHF thousand (condensed)

^A Changes in own shares in the reporting year 2023/24: disposal of 3'948 shares within the shareholding program for employees (previous year: disposal of 2'713 shares within the shareholding program for employees)

27 Condensed Annual Report 2023/24

Notes DOTTIKON ES Group

28 Notes DOTTIKON ES Group Condensed Annual Report 2023/24 29 Notes DOTTIKON ES Group Condensed Annual Report 2023/24

Notes to the Group Financial Statements of DOTTIKON ES Group (condensed)

1 SEGMENT REPORTING

DOTTIKON ES Group manufactures high-quality performance chemicals, intermediates, and exclusive active pharmaceutical ingredients (APIs) for the world's leading chemical, biotech, and pharmaceutical industry. DOTTIKON ES Group is specialized in hazardous reactions and positions itself as strategic development and manufacturing partner and performance leader. DOTTIKON ES Group uses, maintains, and continuously expands its versatile technology and equipment portfolio to design, develop, and optimize chemical processes and technical manufacturing procedures for the rapid scale-up from kilograms to multi-tons in order to produce and deliver the respective market volumes.

According to Swiss GAAP FER 31 "Complementary Recommendation for Listed Public Companies", the reportable operating segments are determined using the segment reporting to the top management level for corporate management. DOTTIKON ES Group's top management level is the Board of Directors. In addition to its statutory tasks, the Board of Directors is responsible for the strategic focus and management of the Group. Strategic and important operational decisions of DOTTIKON ES Group are taken by the Board of Directors.

DOTTIKON ES Group builds on one single production site with the performance leadership strategy as strategic partner and specialist for hazardous reactions. DOTTIKON ES Group mainly executes strongly heterogeneous projects with a focus on the exclusive synthesis of fine chemicals. Therefore, a differentiation in several operating segments is not informative. The financial reporting to the Board of Directors is prepared in a single segment. DOTTIKON ES Group allocates resources and assesses their performance on entity level.

Therefore, the required information according to Swiss GAAP FER 31.8 "Segment Reporting" is shown in the Group Financial Statements.

2 PERSONNEL EXPENSES

3 OTHER OPERATING EXPENSES

Reporting year 2023/24: mainly includes replacement of plant components and other property, plant and equipment with carrying amounts (previous year: mainly replacement of plant and building components with carrying amounts)

4 FINANCIAL RESULT

Financial income includes the following:

Reporting year 2023/24: thereof CHF 1'031 thousand due to changes in the value of the employer contribution reserve, mainly as a result of positive financial asset returns in the pension fund

Financial expenses include the following:

Previous year: thereof CHF 1'650 thousand due to changes in the value of the employer contribution reserve, mainly as a result of negative financial asset returns in the pension fund

Foreign exchange loss recognized in the income statement amounts to CHF 1'110 thousand during the reporting year 2023/24 (previous year: foreign exchange loss of CHF 150 thousand) and is allocated to the following positions of the income statement ("+" foreign exchange gain; "–" foreign exchange loss)

• Net sales CHF +56 thousand (previous year: CHF +94 thousand)
• Material expenses CHF –941 thousand (previous year: CHF +15 thousand)
• Financial income CHF +1'116 thousand (previous year: CHF +1'540 thousand)
• Financial expenses CHF –1'341 thousand (previous year: CHF –1'799 thousand)

5 INCOME TAXES

Income taxes can be analyzed as follows:

• ^A The applicable tax rate corresponds to the tax rate at the headquarters of Dottikon Exclusive Synthesis AG, which is domiciled in Switzerland and which most significantly affects the Group result in the long term
• ^B Reporting year 2023/24: lower income tax rate as a result of the new tax regime as of 01.01.2022 (on 15.05.2022 the popular vote in the Canton of Aargau voted in favor of the proposal for a graduated income tax rate reduction)
• ^C Effect of additional taxable deductions of research and development expenses due to changes in the tax law as of 01.01.2020, "tax proposal 17" (TP17)
• ^D Deviations mainly result from different allocation of the results of the Group companies
• ^E Previous year: revaluation of deferred tax liabilities due to lower income tax rate at the domicile because of changes in tax law as of 01.01.2022 (accepted by popular vote in the Canton of Aargau on 15.05.2022 only)

Previous year: revaluation of deferred tax liabilities due to lower income tax rate at the domicile because of changes in tax law as of 01.01.2022 (accepted by popular vote in the Canton of Aargau on 15.05.2022 only)

Reporting year 2023/24: includes costs for the changes (additional provisions charged to income/unused amounts reversed and released to income) of provisions of CHF 828 thousand (previous year: mainly costs for additional provisions charged to income of CHF 2'794 thousand and ongoing costs of CHF 6'561 thousand) for the disposal of burdened soil as part of the current excavation work as well as due to changes in regulatory requirements at the beginning of the year 2022 and higher disposal prices

Reporting year 2023/24: thereof CHF 2'787 thousand (previous year: CHF 341 thousand) mainly from interest of cash and cash equivalents as well as current financial assets

Reporting year 2023/24: thereof CHF 928 thousand (previous year: CHF 302 thousand) from interest of non-current bank loans; see also note 12 "Non-current Financial Liabilities"

30 Notes DOTTIKON ES Group Condensed Annual Report 2023/24

6 TRADE RECEIVABLES

Trade receivables are value adjusted as follows:

In the reporting year 2023/24, as in the previous year, there were no bad debts to be written off. Receivables which are still pending and not subject to individual value adjustments are mainly receivables arising from long-standing customer Group does not anticipate any significant defaults.

Deferred tax liabilities are attributable to the following positions: At the balance sheet date, the aging structure of trade receivables which are not subject to individual value adjustments was as follows:

7 INVENTORIES

A Mainly includes precious metals in the form of catalysts for production purposes

relationships. Based on past experience, DOTTIKON ES Value adjustments deducted from the above-mentioned inventory balances amount to CHF 7'359 thousand as of March 31, 2024 (previous year: CHF 5'195 thousand).

31 Notes DOTTIKON ES Group Condensed Annual Report 2023/24

A Share of undeveloped land as of 31.03.2024: CHF 1'854 thousand (31.03.2023: CHF 1'854 thousand and 01.04.2022: CHF 1'854 thousand) as well as share of developed land as of 31.03.2024: CHF 6'845 thousand (31.03.2023: CHF 6'845 thousand and 01.04.2022: CHF 6'845 thousand)

The insurance value of property, plant and equipment amounts to CHF 1'156'095 thousand as of March 31, 2024 (previous year: CHF 967'869 thousand). Capital commitments for property, plant and equipment amount to CHF 65'578 thousand as of March 31, 2024 (previous year: CHF 182'280 thousand). There was no impairment on propery, plant and equipment in the reporting year 2023/24 (previous year: as mentioned in footnote E, property, plant and equipment was impaired by CHF 1'058 thousand). No interests were capitalized in the reporting and the previous year.

^<sup>B Includes purchased CO₂ emission rights EUA

^<sup>B Thereof prepayments for property, plant and equipment under construction, 31.03.2024: CHF 0 thousand (31.03.2023: CHF 0 thousand and 01.04.2022: CHF 0 thousand)

^<sup>c Capital expenditure reflects cost of acquired property, plant and equipment (without consideration of cash outflow)

PReporting year 2023/24: subsidies of CHF 215 thousand (previous year: none) for property, plant and equipment, offset against additions to

^<sup>E Previous year: impairment reassessment related to additional foundation work of the new multipurpose production plant under construction with a value adjustment of CHF 1'058 thousand. The relating accumulated work within property, plant and equipment under construction was not eligible for capitalization and was depreciated and derecognized

F In the reporting year 2023/24, a new asset category "Intangible assets under development" was implemented to allocate intangible assets under development (mainly software) which have not become operational yet, to the correct asset category according to an improved presentation. The initial balance of the category "Intangible assets under development" was determined with CHF 622 thousand as of 01.04.2023 and was transferred and reclassified from property, plant and equipment under construction

32 Notes DOTTIKON ES Group Condensed Annual Report 2023/24 33 Notes DOTTIKON ES Group Condensed Annual Report 2023/24

In the reporting year 2023/24, a new asset category "Intangible assets under development" was implemented to allocate intangible assets under development (mainly software) which have not become operational yet, to the correct asset category according to an improved presentation. The initial balance of the category "Intangible assets under development" was determined with CHF 622 thousand as of 01.04.2023 and was transferred and reclassified from property, plant and equipment under construction

No development costs were capitalized in the reporting year 2023/24 and the previous year since no capitalization criteria were met. Expenses for research and development of CHF 21'092 thousand (previous year: CHF 19'820 thousand) were charged to the income statement. Capital commitments for intangible assets amount to CHF 197 thousand as of March 31, 2024 (previous year: CHF 53 thousand). There was no impairment on intangible assets in the reporting year 2023/24 and the previous year. No interests were capitalized in the reporting and the previous year.

10 PROVISIONS

Environmental provisions for soil rehabilitation (former storage tanks) as well as for the disposal of burdened soil as part of the current excavation work were recognized and have changed as follows:

Reporting year 2023/24 and previous year: recognition of provisions for the disposal of burdened soil as part of the current excavation work as well as due to changes in regulatory requirements at the beginning of the year 2022 and higher disposal prices

11 ACCRUED EXPENSES AND DEFERRED INCOME

Mainly includes bonus, vacation not yet taken, 13th monthly wage and overtime including related social security expenses

12 NON-CURRENT FINANCIAL LIABILITIES

The bank loans were provided in Swiss francs without securities with an average interest rate of 1 percent p.a. The remaining terms of the bank loans as of March 31, 2024 are between around 3 and 5 years (previous year: more than 5 years). In the reporting year 2023/24, financial expenses for bank loans amount to CHF 928 thousand (previous year: CHF 302

13 REPORTING ON NON-FINANCIAL MATTERS

thousand); see also note 4 "Financial Result".

The reporting on non-financial matters according to the Swiss Code of Obligations ("OR"), Art. 964a et seqq. OR, can be found under https://dottikon.com/en/investors/sustainabilityand-corporate-responsibility-reports/ as a separate reporting.

14 SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

The Group Financial Statements were approved for issue by the Board of Directors on May 17, 2024. They are subject to approval by the Annual General Meeting. No significant events have occurred between March 31, 2024, and May 17, 2024, that would require an adjustment of the Group's carrying amounts of assets and liabilities or that would need to be disclosed under this heading.

Thereof prepayments for intangible assets under development, 31.03.2024: CHF 0 thousand (31.03.2023: CHF 0 thousand and 01.04.2022: CHF 0 thousand)

Capital expenditure reflects cost of acquired intangible assets (without consideration of cash outflow)

Reporting year 2023/24: CHF 7'244 thousand (previous year: CHF 7'244 thousand) for soil rehabilitation and CHF 4'708 thousand (previous year: CHF 4'311 thousand) for the disposal of burdened soil as part of the current excavation work

Reassessment of maturities of the included individual still active positions due to the project status led to a shift of CHF 1'634 thousand from the non-current to the current provisions as of 31.03.2024 (previous year: shift of CHF 6'161 thousand from the current to the non-current provisions)

Includes deferred income from services still to be provided

Mainly includes pending liabilities versus suppliers, who have already provided a service but have not yet invoiced it, thereof in the reporting year 2023/24 CHF 75'230 thousand (previous year: CHF 62'273 thousand) for property, plant and equipment under construction as well as intangible assets under development and CHF 8'350 thousand (previous year: CHF 9'595 thousand) for raw materials

35 DOTTIKON ES Group Condensed Annual Report 2023/24

Corporate Governance

Corporate Governance (condensed)

^A Since November 2023; until October 2023 Dr. Knut Hildebrandt

36 Corporate Governance DOTTIKON ES Group Condensed Annual Report 2023/24 37 Corporate Governance DOTTIKON ES Group Condensed Annual Report 2023/24

GROUP STRUCTURE AND SHAREHOLDERS Group structure

DOTTIKON ES Group manufactures high-quality performance chemicals, intermediates, and exclusive active pharmaceutical ingredients (APIs) for the world's leading chemical, biotech, and pharmaceutical industry. DOTTIKON ES Group is specialized in hazardous reactions and positions itself as strategic development and manufacturing partner and performance leader. DOTTIKON ES Group uses, maintains, and continuously expands its versatile technology and equipment portfolio to design, develop, and optimize chemical processes and technical manufacturing procedures for the rapid scale-up from kilograms to multi-tons in order to produce and deliver the respective market volumes.

The operating management structure of the Group is organized by functions according to the illustration on the left. Dottikon ES Holding AG, holding company of DOTTIKON ES Group, has its domicile in Dottikon and is listed on the SIX Swiss Exchange

• DESN
• Security number 58258171
• ISIN CH0582581713

The share capital amounts to CHF 139'990.84 as of March 31, 2024 (previous year as of March 31, 2023: CHF 139'990.84). The market capitalization as of March 31, 2024, is CHF 3'331'781'992 (previous year as of March 31, 2023: CHF 3'639'761'840). As in the previous year, there are no further listed companies in the Group.

Dottikon ES Holding AG has investments in the following companies

• Dottikon Exclusive Synthesis AG Domicile in Dottikon/share capital CHF 102'000 Investment share of 100 percent/fully consolidated Branch/purpose: chemicals/process development, manufacturing, and sale of chemical intermediates and active pharmaceutical ingredients
• Dottikon ES Management AG Domicile in Dottikon/share capital CHF 100'000 Investment share of 100 percent/fully consolidated Branch/purpose: chemicals/management of investment companies, as well as review and assessment to evaluate their strategies
• DOTTIKON ES AMERICA, INC. Domicile in Delaware, USA/share capital CHF 0 Investment share of 100 percent/fully consolidated Branch/purpose: chemicals/business development, marketing, and consulting services for investment companies
• SYSTAG, System Technik AG Domicile in Rüschlikon/share capital CHF 410'000 Investment share of 49.7 percent/equity method Branch/purpose: automated process technology/ development and manufacturing of integrated solutions for automated chemical process development as well as software and engineering services

38 Corporate Governance DOTTIKON ES Group Condensed Annual Report 2023/24 39 Corporate Governance DOTTIKON ES Group Condensed Annual Report 2023/24

Significant shareholders

The following shareholders hold more than 3 percent of the registered share capital:

Holds 56.3% as of 31.03.2024 (31.03.2023: 56.3%) through EVOLMA Holding AG, Wollerau

Participations of members of the Board of Directors, Senior Management, and persons related to them

Members of the Board of Directors, Senior Management as well as their related parties hold the following registered shares of Dottikon ES Holding AG as of March 31, 2024 (previous year: March 31, 2023):

Holds 7'886'989 registered shares as of 31.03.2024 (31.03.2023: 7'886'989 registered shares) through EVOLMA Holding AG, Wollerau

BOARD OF DIRECTORS

MEMBERS OF THE BOARD OF DIRECTORS OF DOTTIKON ES HOLDING AG As of March 31, 2024

^A CEO/Managing Director

Markus Blocher

Professional background/career

^A See Notes "Senior Management"

Other activities and vested interests

• Chairman of the Board of Directors of EVOLMA Holding AG
• Chairman of the Board of Directors of SYSTAG, System Technik AG
• President of the Foundation Board of the pension plan of DOTTIKON ES Group
• President of the Foundation Board of the social welfare foundation of DOTTIKON EXCLUSIVE SYNTHESIS AG
• Chairman of the Board of Directors and liquidator of frugan Holding AG in Liquidation (in liquidation since June 2023)

Through Ingro Finanz AG, Hergiswil NW

Concerns RoPAS (CH) Institutional Fund – Equities Switzerland. In the reporting year 2023/24, all shares of Dottikon ES Holding AG held by UBS Fund Management (Switzerland) AG, Basel, amount to 3.9% (previous year: 3.5%)

Until October 2023; there are no participation positions to be disclosed as of

Since November 2023; there were no participation positions to be disclosed as of

40 Corporate Governance DOTTIKON ES Group Condensed Annual Report 2023/24 41 Corporate Governance DOTTIKON ES Group Condensed Annual Report 2023/24

Alfred Scheidegger

Professional background/career

Other activities and vested interests

• ■ Chairman of the Board of Directors of Nextech Holding AG
• Chairman of the Board of Directors of Wemedoo AG
• Member of the Board of Directors of Nextech Invest AG
• Member of the Board of Directors and liquidator of Nextech III GP AG in Liquidation (liquidation completed in December 2022)
• Member of the Board of Directors of 8stogg AG, Freienbach
• Member of the Advisory Board of BioNeex, Inc., Delaware, USA (since February 2024)
• Advisor of Keliomics, Inc., Portland, USA (since April 2024)

Bernhard Urwyler

Professional background/career

As of Annual General Meeting of 03.07.2020, member of the Board of Directors; from March until July 2020: advisory counselor

Other activities and vested interests

■ Examination expert (until March 2023) and mandate as consultant for study program evaluation (from April to October 2023) at the School of Engineering and Architecture of Fribourg

The two members of the Board of Directors Alfred Scheidegger and Bernhard Urwyler did not have any executive function within DOTTIKON ES Group in the past 3 years before the reporting year 2023/24. Neither of them nor any related party had significant business relations with DOTTIKON ES Group in the past years since being elected to the Board of Directors or the Advisory Board of Dottikon ES Holding AG.

The composition of the Board of Directors of Dottikon Exclusive Synthesis AG and Dottikon ES Management AG is the same as the composition of Dottikon ES Holding AG.

SENIOR MANAGEMENT

Robert Dahinden Swiss 1966 Head of Production Dipl. Chem. ETH, Dr. sc. nat. ETH 2020

MEMBERS OF THE SENIOR MANAGEMENT OF DOTTIKON ES GROUP As of March 31, 2024

Rolf Jens Schaller ^A German/

Swiss

Markus Blocher

Other activities and vested interests

• Chairman of the Board of Directors of Dottikon ES Holding AG (see Notes "Board of Directors")
• CEO of Dottikon Exclusive Synthesis AG, Dottikon ES Holding AG, and Dottikon ES Management AG

■ Chairman of the Board of Directors of EVOLMA Holding AG

1971 Head of Quality ManagementB Dipl. Chem., Dr. rer. nat. 2023

• Chairman of the Board of Directors of SYSTAG, System Technik AG
• President of the Foundation Board of the pension plan of DOTTIKON ES Group
• President of the Foundation Board of the social welfare foundation of DOTTIKON EXCLUSIVE SYNTHESIS AG
• Chairman of the Board of Directors and liquidator of frugan Holding AG in Liquidation (in liquidation since June 2023)

^A Since November 2023

^B Until October 2023 Knut Hildebrandt

42 Corporate Governance DOTTIKON ES Group Condensed Annual Report 2023/24 43 Corporate Governance DOTTIKON ES Group Condensed Annual Report 2023/24

Marlene Born

Professional background/career Since 2006 CFO of DOTTIKON ES Group 2005–2006 Controller at DOTTIKON ES Group Head of Accounting, Migros Verteilzentrum Suhr AG, Suhr 2000 Controller, ABB Normelec AG, Zurich 1995–2000 Accountant, Treuhandbüro Deragisch, Baden

Other activities and vested interests

• Member of the Senior Management of Dottikon Exclusive Synthesis AG, Dottikon ES Holding AG, and Dottikon ES Management AG
• Member of the Foundation Board of the pension plan of DOTTIKON ES Group
• Vice president of the Foundation Board of the social welfare foundation of DOTTIKON EXCLUSIVE SYNTHESIS AG

Karin Krause

Other activities and vested interests

■ Member of the Senior Management of Dottikon Exclusive Synthesis AG and Dottikon ES Management AG

Stephan Kirschbaum

Professional background/career

Other activities and vested interests

• Member of the Senior Management of Dottikon Exclusive Synthesis AG
• Chairman of the Board of Directors and CEO of DOTTIKON ES AMERICA, INC.

Urs Brändli

Professional background/career

Other activities and vested interests

• Member of the Senior Management of Dottikon Exclusive Synthesis AG and Dottikon ES Management AG
• Member of the Board of SCS-DIAC "Swiss Chemical Society; Division of Industrial and Applied Chemistry"

Thomas Rosatzin

Professional background/career

Other activities and vested interests

• Member of the Senior Management of Dottikon Exclusive Synthesis AG
• Advisory counselor of Cowa Thermal Solutions AG

Robert Dahinden

Professional background/career

Other activities and vested interests

• Member of the Senior Management of Dottikon Exclusive Synthesis AG
• Board Member of the regional sewage association in Wohlen

Rolf Jens Schaller

Professional background/career

^A Since November 2023

Other activities and vested interests

■ Member of the Senior Management of Dottikon Exclusive Synthesis AG

Changes in Senior Management in the reporting year 2023/24

On October 31, 2023, Knut Hildebrandt handed over the Senior Management position of Head of Quality Management to Rolf Jens Schaller, upon reaching the official retirement age. Rolf Jens Schaller was appointed as Member of the Senior Management and Head of Quality Management on November 1, 2023.

Information regarding the person of Knut Hildebrandt can be found in the Condensed Annual Report 2022/23 on pages 39 and 41, available at https://dottikon.com/en/documents/ investors/financial-reports/en/annual_report_2022_23/.

45 DOTTIKON ES Condensed Annual Report 2023/24

Investor Relations

Annual General Meeting for the Business Year 2023/24 July 5, 2024

Issue Half-Year Report 2024/25 November 29, 2024

Issue Annual Report 2024/25 May 28, 2025

Annual General Meeting for the Business Year 2024/25 July 4, 2025

Dottikon ES Holding AG is listed on the SIX Swiss Exchange. Symbol: DESN Security number: 58258171 ISIN: CH0582581713

Dottikon ES Holding AG P.O. Box 5605 Dottikon Switzerland

Tel +41 56 616 82 01 www.dottikon.com

Contact Marlene Born, CFO investor-relations@dottikon.com 46 DOTTIKON ES Condensed Annual Report 2023/24

DOTTIKON ES manufactures high-quality performance chemicals, intermediates, and exclusive active pharmaceutical ingredients (APIs) for the world's leading chemical, biotech, and pharmaceutical industry. The company with its production site in Dottikon (Aargau, Switzerland) is specialized in hazardous reactions and positions itself as strategic development and manufacturing partner and performance leader. Its safety culture created over more than 110 years guides the innovative use of hazardous reactions, low-temperature and high-pressure chemistry, as well as continuous processing in order to challenge, tighten, or shorten conventional chemical synthesis routes, improve selectivities, yields, and purities, as well as avoid and reduce energy consumption, waste, and CO² emissions sustainably. The versatile technology and equipment portfolio is used, maintained, and continuously expanded to design, develop, and optimize chemical processes and technical manufacturing procedures for the rapid scaleup from kilograms to multi-tons in order to produce and deliver the respective market volumes. DOTTIKON ES' one-site strategy allows reduced decision and communication pathways. This ensures rapid and efficient project development and management, clear and transparent data and process documentation, and close customer communication.

DISCLAIMER

Statements on future events or developments, particularly on the estimation of future business, reflect the view of the management of Dottikon ES Holding AG in the moment of composition. Since these naturally contain uncertainties and risks, they are given without guarantee and any liability is denied. Dottikon ES Holding AG refuses to actualize any forward-looking statements. The internet version of these financial statements is exposed to fraudulent manipulation possibilities that are within such a medium, and is therefore without guarantee. The comprehensive Annual Report is available in German. Only the comprehensive German version submitted to the SIX Swiss Exchange is legally binding.

IMPRINT CONDENSED ANNUAL REPORT Art Direction, Graphics & Typesetting: Raffinerie, Zurich