ASM International N : ESG supplement

Total electricity consumption

Total electricity consumption expressed in megawatt hours (MWh); Renewable Energy Attribute Certificates (EACs) purchased; and MWh or units of renewable EACs purchased.

Percentage renewable electricity

Scope 3 emissions

Relevant GHG protocol Scope 3 categories that indicate indirect emissions from peripheral activities. GHG Scope 3 emissions are calculated by converting the relevant activity data (for example spend, distance) to tonnes CO2e using emission factors. For the calculation methods used per category, please refer to the below table:

Percentage of electricity consumed from renewable sources versus ASM's total electricity consumption.

Scope 1 and 2 (market-based and location-based) greenhouse gas (GHG) emission KPIs

Scope 1 and 2 concern the absolute Scope 1 and 2 GHG emissions in tonnes CO2e. Two calculation methods are applied:

• Market-basedGHG Scope 1 and 2 emissions are calculated by accounting for the global qualified EAC purchases against purchased electricity.
• Location-basedGHG Scope 1 and 2 emissions are calculated by converting the input data (utility and consumption) to tonnes CO2e using local grid-emission factors.

Scope 1 and 2 (market-based) GHG emissions per revenue (emissions intensity)

Scope 1 and 2 (market-based) GHG emissions in tonnes CO2e per million EUR revenue.

• Scope 3 Category

• Purchased goods and services
  2 Capital goods
  3 Fuel & energy related
  4 Upstream Transportation & Distribution
  5 Waste
  6 Business travel
  7 Commuting / WFH
  8 Leased facilities (upstream leased assets)
  9 Downstream Transportation & Distribution
  10 Processing of sold products
  11 Use of sold products
  12 End-of-life treatment of sold products 13 Downstream leased assets
  14 Franchises
  15 Investments

Calculation method

Spend-based and Average methods

Spend-based

Fuel-based

Fuel-based and Distance-based methods

Waste type specific method

Fuel-based method and Distance-based method

Distance-based method

N/A

Fuel-based and Distance-based methods

N/A

Process-based method

Waste type specific method

N/A

N/A

Investment-specific method

Scope 3.11 use of sold products emissions are determined through the process-based method, which uses quantity-based data to evaluate the emissions associated with the use of our machines, such as the MWh of energy use over the machine's lifetime. The use cases are determined through independent product tests and internal expert opinion.

All the parameters used in our Scope 3.11 calculations are re-validated annually, to reflect the latest insights. The Scope 3 emissions data are always based on best currently available. As we plan to strengthen our model further with additional independently validated data, the figures presented in the Annual Report may be restated in the future.

Water Withdrawn Absolute

The total water acquired by ASM into our property boundaries in cubic meters (m3).

Water withdrawn from water-stressed regions

The percentage of water withdrawn from high or extremely high water-stressed regions as per the most recent information from the World Resource Institute (WRI) Aqueduct analysis. This metric is defined by WRI as the ratio of total water withdrawals to the available renewable surface and groundwater supplies.

Water intake per revenue (water intensity)

Water withdrawal figure, which is the same as the water intake figure, divided by net revenue to obtain a water intensity figure.

Water intake per R&D spend (water intensity)

Water withdrawal figure, which is the same as the water intake figure, divided by gross R&D spend to obtain a water intensity figure.

Significant chemical spills or releases to the environment

Releases directly to the environment that are unanticipated and meeting a material threshold for reporting per the jurisdiction of release. The reported figure is the number of incidents.

Non-Hazardous solid waste recycle

Tonnes of non-hazardous solid waste produced in our R&D and manufacturing sites that are recycled.

Non-Hazardous solid waste landfill

Tonnes of non-hazardous solid waste produced in our R&D and manufacturing sites that are sent to landfill.

Non-Hazardous reuse - ASM diversion

Tonnes of waste to landfill avoided by ASM through using reusable crates.

Landfill Diversion Rate (ASM Operations)

Calculation by adding the total tonnes of non-hazardous solid waste recycled and the total tonnes non-hazardous reuse from ASM diversion. This resulting figure is divided by total non-hazardous solid waste. This KPI is presented as a percentage.

The total non-hazardous solid waste includes:

• non-hazardoussolid waste recycled;
• total tonnes non-hazardous reuse - ASM diversion; and
• total tonnes non-hazardous solid waste landfill.

Landfill diversion (all product packaging reuse)

The sum of the KPI 'Non-Hazardous reuse - ASM diversion' and the tonnes of reused crates from customers.

Percentage packaging reuse to customers

Percentage of packaging reuse that stems from customers. This metric is calculated by obtaining the total reuse crating weights (in tonnes) utilized for ASM tools shipped to customers for the reporting period. This figure is divided by the total crating weight (both reused and single-use crates for all ASM tools shipped to customers for the reporting period (tonnes)

For environmental KPIs, estimations are at times made for the last period of the reporting year to accommodate timely reporting. This estimation is based on assumptions stemming from historic results combined with known factors that could influence the usage. For environmental data stemming from smaller locations, such as sales offices which are shared, estimates are made if source data is not available. These represent a non-material portion of our total global operations.

Ethics KPIs

The ethics KPI set exists of KPIs listed below:

Ethics training

Percentage of the total number of employees, as of the end of the reporting year, which completed the required ethics trainings. The scope of this KPI concerns the internal active, new college graduates, expat employees, and ASM's managed contractors worldwide.

Reported confidential concerns via SpeakUp!

Count of events reported via SpeakUp!, the globally available anonymous reporting channel to report ethical or whistleblower concerns. The scope of this KPI is ASM worldwide, including other stakeholders with a valid business interest (for example, suppliers, contractors, seconded personnel).

Reported concerns from other channels

Count of all filed reports via channels other than SpeakUp!, which are registered as 'reported concerns from other channels'. The scope of this KPI is ASM worldwide, including other stakeholders with a valid business interest (for example, suppliers, contractors, seconded personnel).

Code of Business Conduct (COBC) confirmed cases of non-compliance

Count of COBC confirmed cases of non-compliance. The scope of this KPI concerns ASM worldwide, including other stakeholders with a valid business interest (for example, suppliers, contractors, seconded personnel).

Health & Safety KPIs

The scope of the Health & Safety KPIs comprises all ASM employees as well as contracted workers who are under the direct supervision of ASM.

The health and safety KPI set exists of the KPIs listed below:

Number of recordable injuries

Total number of recordable injuries and illnesses. ASM uses the US OSHA definition of a recordable injury or illness:

• Any work-related fatality;
• Any work-related injury or illness that results in loss of consciousness, days away from work, restricted work, or transfer to another job;
• Any work-related injury or illness requiring medical treatment beyond first aid;
• Any work-related diagnosed case of cancer, chronic irreversible diseases, fractured or cracked bones or teeth, and punctured eardrums; and
• There are also special recording criteria for work-related cases involving: needlesticks and sharps injuries; medical removal; hearing loss; and tuberculosis.

Recordable injury rate

Number of qualifying recordable injuries and illnesses as compared to the average number of 100 FTE during the year. ASM uses the US OSHA definitionof a recordable injury or illness. Please refer to the number of recordable injuries KPI for more information on the OSHA definition.

Total number of injuries and illnesses

Sum of the total number of recordable injuries and illnesses and total number of first-aid injuries and illnesses. ASM uses the US OSHA definition of a first-aid injury or illness, which is usually administered immediately after the injury occurs, often consisting of one-time,short-term treatment

• Using a non-prescription medication at non-prescription strength (for medications available in both prescription and non-prescription form, a recommendation by
  a physician or other licensed health-care professional to use a non-prescription

medication at prescription strength is considered medical treatment for record- keeping purposes);

• Administering tetanus immunizations (other immunizations, for example Hepatitis B vaccine or rabies vaccine, are considered medical treatment); cleaning, flushing or soaking wounds on the surface of the skin
• Using wound coverings, for example, bandages, Band-Aids™, gauze pads, or using butterfly bandages (other wound-closing devices, for example, sutures, staples, are considered medical treatment);
• Using hot or cold therapy;
• Using any non-rigid means of support, for example elastic bandages, wraps, non-rigid back belts, (devices with rigid stays or other systems designed to immobilize parts of the body are considered medical treatment for recordkeeping purposes);
• Using temporary immobilization devices while transporting an accident victim (for example, splints, slings, neck collars, or back boards). Drilling of a fingernail or toenail to relieve pressure, or draining fluid from a blister;
• Using eye patches;
• Removing foreign bodies from the eye using only irrigation or a cotton swab;
• Removing splinters or foreign material from areas other than the eye by irrigation, tweezers, cotton swabs or other simple means;
• Using finger guards;
• Using massages (physical therapy or chiropractic treatment are considered medical treatment for recordkeeping purposes); or
• Drinking fluids for relief of heat stress.

Lost-time injury rate (LTIR)

The LTIR is calculated as the total number of lost time recordable-injury cases as compared to the average number of 100 FTE. If an injury case has lost time, that automatically makes it recordable. ASM uses the US OSHA definitionof a recordable injury or illness. Please refer to the number of recordable injuries KPI for more information on the OSHA definition. An injury qualifies as a lost-time case if it resulted in time away from work, excluding the day of the injury.

Fatality rate

An employee death resulting from a work-related incident or exposure. The fatality rate KPI refers to the total number of fatal work injuries as compared to the total number of 100 FTE, which is counted as the average across the year.

People (HR) KPIs

The scope of the People KPIs concerns the internal active, new college graduates, and expat employees of ASM worldwide.

The People (HR) KPIs are the following:

CEO pay ratio

CEO remuneration divided by the average remuneration of all employees, calculated by dividing the total personnel costs (wages, short-term incentives, salaries, and share-based payments) minus the CEO's remuneration by the total number of employees (minus the CEO).

Injury rate

The injury-rate KPI is calculated as the total number of injuries and illnesses as compared to the average number of 100 FTE during the year. The total number of injuries is the sum of those meeting the US OSHA definition of recordable injury and first-aid injuries. Please refer to the number of injuries and illnesses KPI for more information on the US OSHA definition of injuries.

Gender pay ratio

Pay ratio (average wages) of employees (in headcount) on the last day of the reporting period by gender (in percentages).

Gender diversity

Total number of employees (in headcount) on the last day of the reporting period by gender (in percentages).

Voluntary attrition rate

Number of people who have left the company voluntarily in the reporting year divided by the number of employees at the end of the reporting year (in percentages).

Total attrition rate

Number of employees who have left the company involuntarily and voluntarily in the reporting year divided by the number of employees at the end of the reporting year (in percentages).

Employee age bracket statistics

Percentage of employees by age group on the last day of the reporting period. Percentages of headcount by age in the following groups:

• Under 30 years old;
• 30-50years old; and
• Over 50 years old

Employee engagement scores

Engagement scores from the ASM employee engagement global survey:

• Survey participation
• Average scores of 12 standardized categories to determine engagement

Supply chain KPIs

The supply-chain KPI set covers the following:

RBA Code of Conduct acknowledgement

Percentage of critical and/or strategic suppliers as determined by the ASM supply chain organization for the reporting year, which have acknowledged their commitment to the Responsible Business Alliance (RBA) Code of Conduct, or whose code of conduct is assessed to be acceptable as it covers similar principles as the RBA Code of Conduct. For the RBA Code of Conduct Acknowledgement KPI, the boundary concerns all critical and/or strategic suppliers of ASM.

RBA Code of Conduct SAQ

Percentage of critical and/or strategic RBA scorecard suppliers who completed a required supplier RBA self-assessment questionnaire (SAQ) and received a low- or medium-risk assessment result. The boundary of RBA Code of Conduct SAQ covers all critical and/or strategic suppliers of ASM that receive a performance scorecard.

Conflict minerals CMRT (Conflict minerals reporting template)

Percentage of critical and/or strategic suppliers that have submitted compliant CMRT responses to ASM each year. The CMRT survey cycle is a lagging reporting process and is based on the prior year sourcing activities, due to the data only becoming available by May each year. The boundary of the conflict minerals CMRT KPI consists of all critical and/ or strategic suppliers from the prior calendar year.

Restatements of historic figures

The 2021 and 2022 figures of the following KPIs were restated: 1) Energy 2) Scope 1 + 2 GHG emissions 3) Water 4) Waste. The scope of these KPIs changed from previously five manufacturing and R&D hubs to encompass all operations, including (sales) offices, as well as acquisitions (including their historic data). No other KPIs were restated in 2023.

For our materiality assessment in 2023, we followed the steps below to come to our list of material topics to disclose:

• Analysis of the operating environment, value chain, and business context;
• Identification of long-list topics;
• Prioritization and validation of topics into a shortlist of topics; and
• Verification with ASM's board of directors

Identification of long-list topics

ASM's ESG priorities were defined and identified through stakeholder priorities and peer- and industry research. An extensive list of ESG topics was drafted based on several internal and external sources including the upcoming Corporate Sustainability Reporting Directive, ESG benchmarks, peer and industry sources, as well as ASM's enterprise-risk management input.

Analysis of the operating environment and business context

ASM's materiality assessment began with the preparation of an analysis of ASM's operating environment and business context. An overview of ASM's business, activities, value chain and stakeholders was prepared as context for determining the material topics, and the impacts, risks and opportunities. All of ASM's operations were considered in this. Also refer to ASM's value-creation model for a visual overview of ASM's operating environment. ASM's value chain consists of, among others, upstream suppliers, for example, mining companies, smelters, component producers, contract manufacturers, utilities providers, legal and consulting agencies, logistics companies, waste contractors and downstream customers (semiconductor manufacturers). ASM's stakeholders consist of, among others, customers, employees, industry consortia, investor communities, suppliers, communities, NGOs, nature and government and regulators. For more on our interactions with these stakeholders, see chapter 19 of the Annual Report.

Prioritization and validation of topics (preparing short-list)

The process of moving from an extensive list of topics to the short-list was informed by external stakeholder priorities and engagement as well as internal expert validation. For each stakeholder group, a specific engagement method (for example, desk research, surveys, and interviews) was chosen to best capture the nature of the relationship and to obtain the most relevant information. Impacts, risks, and opportunities were identified for each topic, and validated and scored during workshops with internal experts as part of the prioritization process. Both the impact materiality and financial materiality lens were applied in this validation process, as well as an analysis of the related time-horizons. Under impact materiality, the environmental and/or social effect of ASM's contribution to the topics was evaluated, considering the scale, scope, irremediability and likelihood of the impacts. Under financial materiality, the financial effect of risks and opportunities related to the topics was evaluated, considering magnitude and likelihood of the risks and opportunities. The scales applied for financial materiality were in line with ASM's Enterprise Risk Management approach. ASM's value chain was considered in the analysis of the impacts, risks and opportunities. The combined input led to the final list short-list of material topics, as shown in this section of the Annual Report.

Verification with board of directors

Finally, the short-list of material topics has been approved by ASM's Management Board and Executive Committee and has been validated by ASM's Sustainability Leadership Council and the Supervisory Board consecutively.

Results 2023

Following the process, the material topics are depicted in the table below. These topics form the ESG priorities of ASM and are disclosed on in more detail in ASM's annual report. The definitions, impacts, risks, and opportunities for these topics are provided in the overview below.

The description of the impacts, risks and opportunities are reflective of their effect on ASM (on ASM's operations and people, for example). The strategy, actions, initiatives, metrics, and progress regarding each topic are described in the associated relevant sections of the Annual Report 2023. Refer to the overview for the associated sections of the Annual Report for each material topic. Where applicable, the extent to which policies, actions, targets, and metrics are inclusive of the value chain, is described in the relevant sections

of the annual report. Also see the section 'Supplementary information ESG reporting indicators' in this ESG supplement for the methodology and scope of relevant ESG KPIs, that have been provided with limited assurance by KPMG.

To ensure alignment with the Enterprise Risk Management approach, ASM's head of risk management participated in the materiality assessment. Examples of this alignment are the overlap between most material topics and the Top 20 risks, as well as the application of the Enterprise Risk Management scales in determining financial materiality. For more information, including a more detailed analysis of climate risk and our ability to attract talent, see section '13.2 Risk management' in the main body of the Annual Report.

Note that as of Annual Report 2023, the focus of the disclosures is on the identified material ESG priorities for ASM. Topics that were previously disclosed but not identified as material through the materiality assessment in 2023, may have been disclosed to a lesser extent in ASM's Annual Report. In similar vein, other ESG topics could become more important over time to report on in future disclosures.