Carl Zeiss Meditec : AFX Non-financial Report 202223

The presentation of the concepts in the various chapters is based on German Accounting Standard DRS 20. However, no framework was applied in its entirety. Future reporting in accordance with the European Sustainability Reporting Standards (ESRS) is being prepared. Unless stated otherwise, this report applies to the entire Carl Zeiss Meditec Group as per the basis of consolidation for financial reporting.

Assignment of the Carl Zeiss Meditec Group areas to the aspects defined in the CSR Directive Implementation Act

The Carl Zeiss Meditec Group - hereinafter also referred to as the Group or the Company - is an internationally positioned company headquartered in Jena, Germany, with additional subsidiaries in and outside Germany. Carl Zeiss Meditec AG is the parent company of the Carl Zeiss Meditec Group and is listed on the German stock exchange in the MDAX and TecDAX. Figures are rounded according to proper commercial standards. This may result in rounding differences.

These have been identified by the Carl Zeiss Meditec Group according to their relevance to the business and the impact on the particular aspects outlined in the CSR Directive Implementation Act (CSR-RUG). The departments responsible and the management were involved in the analysis. The analysis resulted in the identification of seven different topics: environmental protection, responsibility toward employees, occupational health and safety, social engagement, product safety, integrity and compliance, and human rights. These have been assigned to the aspects listed in the CSR-RUG.

As per the CSR-RUG on the disclosure of non-financial information, companies must not only report on the material aspects, but also disclose corresponding risks associated with their operations, business relationships, products and services, which have or are highly likely to have a serious negative impact on these five aspects as per Sec. 289c (2) of the German Commercial Code (HGB). In the net assessment for the past fiscal year, the Carl Zeiss Meditec Group did not identify any such risks pursuant to Section 289c (3) No. 3 and No. 4 HGB. Additional information on the opportunities and risks can be found in the "Opportunity and Risk Report" of the Annual Report 2022/23 (p. 57).

The Non-Financial Report was submitted for a voluntary limited assurance audit by auditing firm PricewaterhouseCoopers GmbH (PwC) in compliance with ISAE 3000 (Revised). The Independent Practitioner's Report begins on page 26. The Supervisory Board of the Carl Zeiss Meditec Group has assessed the audit findings and approved the Non-Financial Report. It has thus fulfilled its review obligations.

References to disclosures outside of the management report in this non-financial report constitute additional information and were thus excluded from the audit.

Business model

The Carl Zeiss Meditec Group is one of the world's leading medical technology companies operating in ophthalmology and microsurgery. More than 4,800 employees generated revenue of around €2.1 billion in 2022/23. The Group's headquarters are located in Jena, Germany. The Company is represented at sites in the US, France, Spain, Japan and China in addition to subsidiaries in Germany.

The Carl Zeiss Meditec Group develops, manufactures, markets and sells diagnostic and treatment systems, as well as implants and consumables in the field of ophthalmology. Its portfolio also includes visualization systems for neurosurgery, ENT surgery and spine surgery, and dentistry. Intraoperative radiotherapy solutions round off the product range. The Group's objective is to help drive progress in medicine and assist doctors all over the world in enhancing their patients' quality of life.

Digital technologies, which the Group wants to harness so it can shape the market for medical technology in a sustainable manner, also play a growing role in this context. The Company's activities are pooled primarily in the listed entity Carl Zeiss Meditec AG, in which Carl Zeiss AG holds a 59.1% stake. For further information on the business model of the Carl Zeiss Meditec Group, please refer to the Annual Report 2022/23.

Sustainability Strategy

The sustainability strategy of the Carl Zeiss Meditec Group is based on the three strategic focus topics of Carl Zeiss AG: climate protection, circular economy and adding value for the company. The Company's aim, along with Carl Zeiss AG, is to improve the social and environmental impact of the Company's activities, by understanding sustainability as a value driver and seeing sustainability challenges as opportunities.

Governance

Good corporate governance contributes to increased transparency and thus promotes the trust of customers, employees and investors.

Carl Zeiss Meditec AG is the strategic management holding company that manages the Carl Zeiss Meditec Group. It develops the Group's business activities and portfolio, and

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provides central management and service functions. The Carl Zeiss Meditec Group believes that good corporate governance is a key success factor. Failure to apply good corporate governance practices exposes the business to risks such as unclear regulation of roles and responsibilities, loss of reputation, strategic misalignment and loss of trust on the part of shareholders.

Guidelines, structures and processes

The central governing body within the Carl Zeiss Meditec Group is the Management Board, consisting of the President and CEO and the CFO. It is supported by an extended management committee (M1). In addition to the two members of the Management Board, M1 also includes the heads of the Ophthalmology and Microsurgery strategic business units,

as well as the heads of the Operations, Human Resources and Digital functions. The management levels below M1 perform their management responsibilities in accordance with the organizational structure across regions and company locations. Cross-organizational functions such as Finance and Communications, for example, are managed centrally. The strategies and projects are implemented locally at the country organizations in accordance with the respective prevailing laws, rules of procedure and bylaws, and the applicable corporate values and principles.

The Supervisory Board oversees the activities of the listed corpo- ration's two-member Management Board. The Management Board regularly reports to the Supervisory Board regarding current issues and planned operational changes. The Supervisory Board was expanded at the Annual General Meeting in March 2023 to include two union representatives and one employee representative and is thus now composed of twelve members. The respective members were elected in accordance with the provisions of the One-Third Participation Act, which means that the Supervisory Board now has equal representation. The Deputy Chairman of the Supervisory Board also changed.

Unless the Annual General Meeting resolves a shorter period for some or all of the Supervisory Board members to be elected by it, the members shall be appointed until the end of the Annual General Meeting that resolves upon their discharge for the fourth fiscal year after the beginning of the term of office.

The Supervisory Board supports the objectives of the Law on the Equal Participation of Men and Women in Leadership Positions, as well as the recommendations of the German Corporate Governance Code. It has therefore resolved upon a gender quota of at least 30% on the Supervisory Board. This quota has been met on the shareholder side and on the employee side, which each have six female members.

Carl Zeiss Meditec AG does not yet have its own formulated diversity policy for the Management Board and the Supervisory Board in accordance with Section 289f (2) No. 6 HGB. Its composition is primarily based on the qualifications and experience of its members. Further information can be found in the Report of the Supervisory Board in the Annual Report 2022/23 (p. 20).

As Carl Zeiss Meditec AG is a subsidiary of Carl Zeiss AG, the Management Board of Carl Zeiss Meditec AG is required to prepare a report on relationships with affiliated companies in accordance with Section 312 of the German Stock Corporation Act (AktG) and to declare whether Carl Zeiss Meditec AG has received appropriate consideration for the legal transactions with affiliated companies listed and, if so, whether it has undertaken any reportable actions. The report is audited as part of the audit of the consolidated financial statements and an opinion is expressed as to the accuracy of the factual disclosures and the appropriateness of the Company's consideration for the listed legal transactions.

The Management Board is responsible for the economic, environmental and social impact of business operations. Managers are involved in emerging sustainability issues by the Head of Sustainability reporting to the CFO as needed and share them with their teams. In this way, appropriate topics and measures are discussed, decided upon and implemented. The Head of Sustainability coordinates the preparation, proposal, updating and implementation of the sustainability strategy of the Carl Zeiss Meditec Group.

The Carl Zeiss Meditec Group also regularly reviews sustainability risks as part of its risk management. In the view of the Company's management, particular consideration must also be given to reputational risks for the Group derived from sustainability risks, which could lead to a loss of trust on the part of customers and employees as well as investors. However, the net assessment in fiscal year 2022/23 did not identify any risks that are highly likely to have a serious negative impact pursuant to Section 289c (3) no. 3 and 4 HGB. The review is carried out by the Chief Financial Officer of the Company and the Head of Sustainability in close coordination with the Group Finance department, which is responsible for risk management. Significant risks and suitable remedial measures are discussed by the entire Management Board and the Supervisory Board.

As planned, regulatory risks in connection with statutory non-financial reporting obligations have been included in the Carl Zeiss Meditec Group's internal control system since the beginning of fiscal year 2022/23. New risks were identified in connection with the German Supply Chain Due Diligence Act

(Lieferkettensorgfaltspflichtengesetz, LkSG), among others, and associated controls were implemented. The Company is constantly striving to record new risks and respond to them appropriately. To this end, it continuously monitors new regulations and regularly evaluates measures taken. For a detailed description of the Company's risk management and internal control system, please refer to the Annual Report 2022/23 of Carl Zeiss Meditec AG (p. 57).

When determining total remuneration paid to the individual members of the Management Board, including any severance or pension payments, the Supervisory Board must ensure that the remuneration paid is commensurate with the duties and performance of the individual board member and

the Company's position. The remuneration report of the Management Board and information on the remuneration of the Supervisory Board can be found in the Annual Report 2022/23 (p. 78).

Objectives and results

In its corporate governance, the Carl Zeiss Meditec Group follows the guidelines of the German Corporate Governance Code and complies with the vast majority of the Code's recommendations: that means that 90% of the the Code

is fulfilled - including the suggestions. The Declaration of Conformity 2022 pursuant to Section 161 of the German Stock Corporation Act (AktG) is published on the Company's website (https://www.zeiss.com/meditec-ag/investor-relations/declaration-on-corporate-management.html).

The Carl Zeiss Meditec Group also considers approval at the Annual General Meeting to be a key indicator. At the Annual General Meeting in 2023 high approval rates of over 80% on average were achieved, both in the election of the Supervisory Board and the endorsement of the remuneration system and the associated remuneration report.

The goal of the Carl Zeiss Meditec Group is to continuously increase trust in the Company's management through a combination of corporate control with a long-term focus and the necessary transparency. Furthermore, the aim is to gain and maintain trust on the capital market in particular, minimize the Company's financing costs and avoid damage to its reputation. The development of long-term shareholder return on Carl Zeiss Meditec shares has been largely positive compared with the DAX, MDAX and TecDAX indices over a five-year and ten-year period.

The Investor Relations department maintains a regular dialog with the Group's major investors and receives ongoing feedback on corporate governance, among other things. The Company

is continuously assessed by leading ESG rating agencies such as ISS, MSCI and Sustainalytics. A high weighting of governance factors can be observed in this context. The Company carefully takes on board suggestions arising from regular contact with initiatives for the protection of small investors and evaluates them. Courses of action are then developed on this basis as necessary.

Environment

Effective environmental protection and the responsible use of resources are key concerns of the Carl Zeiss Meditec Group.

The Carl Zeiss Meditec Group uses raw materials, semi-finished goods, preliminary products, energy and water in its production processes. Emissions, wastewater and waste are generated that cannot subsequently be reused in the manufacturing process.

The use of natural resources comes with various challenges, including a scarcity of the necessary natural resources or

a negative impact on the environment resulting from the extraction, processing and disposal of materials. In addition, the rising price of energy, raw materials, other materials, or waste disposal can adversely affect the Company's competitiveness.

The Carl Zeiss Meditec Group is constantly working to reduce its consumption and emissions in order to contribute to the fulfillment of the ZEISS Group's environmental goals. These targets were developed in fiscal year 2020/21 and extend into fiscal year 2024/25. The Company pays attention to the efficient use of materials and energy, from product development through to customer application. Natural resources are used as efficiently as possible.

When selecting and using raw materials, technologies and production processes, the Group considers their environmental compatibility. Wherever possible, potentially hazardous materials are replaced with less harmful substances, based on legal requirements. Recyclability is a key criterion when selecting a material. The aim of this is to close material cycles as much

as possible. Waste that can neither be prevented nor recycled is disposed of properly. The Carl Zeiss Meditec Group selects the most environmentally friendly disposal method that is also economically viable.

Guidelines, structures and processes

To ensure continued improvements in its environmental performance, the ZEISS Group first drew up global environmental principles back in 1998, which also apply to the

Carl Zeiss Meditec Group. To implement them, the Company operates an environmental management system as per the international standard ISO 14001:2015. The environmental performance requirements are laid out in a standard operating procedure on environmental protection that is binding throughout the Group. The Chief Financial Officer of Carl Zeiss AG holds overall responsibility for the implementation of

the ZEISS Group's environmental management system. An Environmental Officer appointed for the Group assists the business units with the implementation and helps them identify suitable measures. Additional officers are appointed at each site. At the end of the reporting period on 30 September 2023, the four main sites of the Carl Zeiss Meditec Group in the European Union and three additional international sites outside the European Union were certified to ISO 14001:2015.

Carl Zeiss Meditec Energy Management is tasked with keeping energy-related KPIs stable or improving them, even if production quantities increase. The Company's eight sites in the European Union have been certified to ISO 50001, the international standard for energy management. The focus is on all of the Company's production and other operational processes as well as the relevant machines, systems and equipment, along with its buildings and infrastructure.

A central challenge in the area of environmental protection - especially with regard to the topics of waste, hazardous substances, water and wastewater - is compliance with environmentally relevant laws, official approval specifications and other environmentally relevant requirements. Environment officers at the sites ensure that the relevant rules and regulations are logged in the management system and that all processes are in compliance with the law. If action is required, the environmental officers must make the necessary arrangements. This may be done by issuing a site-specific procedural or work instruction.

Internal and external audits as well as compliance checks ensure compliance with the legal and internal requirements. If this results in opportunities to optimize processes and actions, the Carl Zeiss Meditec Group defines specific measures. It can be challenging to ensure the timely implementation of these measures, a challenge which the Company masters by defining clear responsibilities and deadlines. The implementation is verified in regular follow-up audits.

The Carl Zeiss Meditec Group's business activities impact the climate. At the same time, climate change is also having an impact on the Company. The associated potential impacts and opportunities are part of risk management at Group level. This includes, in particular, the possible transitory impact of

emissions trading and the introduction of a CO2 tax. The ZEISS Group is also monitoring physical phenomena, such as extreme weather, which could affect both its own sites and those of its suppliers. Further information is available in the ZEISS Group Sustainability Report 2022/23.

Objectives and results - Efficient use of natural resources*

The Carl Zeiss Meditec Group optimizes its business processes in line with environmental and economic aspects and organizes them so that ever fewer resources are required. The Company thus contributes to the achievement of the reduction targets of the ZEISS Group: for example, water consumption is to be reduced by 15% relative to the Company's own value added by fiscal year 2024/25. The basis is the sum of EBITDA and personnel expenses. During the same period, the amount of waste generated is projected to fall by 10% relative to the Company's own value added. The reference year for all targets is fiscal year 2018/19.

If necessary, all effluents are pre-treated or drained directly into the public sewer system. In doing so, the Carl Zeiss Meditec Group pays strict attention to meeting the relevant legal requirements.

All of the business units certified in accordance with ISO 14001 have set their own goals for improving their environmental performance as part of their area-specific environmental programs.

Objectives and results - Climate protection*

The ZEISS Group and the Carl Zeiss Meditec Group recognize the goal formulated in the Paris Climate Agreement of keeping global warming well below 2°C and derive corresponding measures of their own, such as the global purchase of renewable electricity, accordingly. The ZEISS Group has set itself the goal of reducing its Scope 1 and Scope 2 emissions by the end of calendar year 2025 and of compensating for all emissions that cannot be avoided. In fiscal year 2022/23, the interim target of reducing the indirect emissions from energy procurement (Scope 2) at the four main production sites1 of the Carl Zeiss Meditec Group and compensating for unavoidable emissions was achieved through the expansion of renewable energies, the conclusion of power purchase agreements and the purchase of certificates of origin for renewable electricity2.

By the end of calendar year 2025, energy at the other sites worldwide will also be sourced in this way, as well as the direct emissions from combustion processes in its own systems and vehicles (Scope 1).

Wherever possible, the conversion will be done by expanding the use of its own systems for renewable energy production like solar panels. It will also purchase renewable electricity via individual energy provision contracts or by using certificates of origin. The Carl Zeiss Meditec Group compensates for certain unavoidable emissions, like the sourcing of gas and district heating, by supporting selected projects. These compensation projects are selected on the basis of strict quality criteria that are in line with ZEISS' sustainability approach. Only projects that meet the defined internationally recognized standards will be supported.

Energy efficiency is also to be further increased: the energy consumption of the ZEISS Group is to be reduced by 20% relative to the Group's own value added by fiscal year 2024/25. The baseline is fiscal year 2018/19.

As part of the ZEISS Group's sustainability program, a working group on the topic of Green Infrastructure is working on implementing measures to reduce CO2 emissions. It aims to ensure the conversion to renewable electricity at all major production sites, to drive forward the Group's own generation of renewable electricity and to optimize energy efficiency in buildings.

Renewable electricity is procured through a global tender via the ZEISS Group. As part of the tender, the ZEISS Group pays attention to the maintenance of strict quality criteria. Renewable energy and renewable energy certificates were used for the four main production sites of the Carl Zeiss Meditec Group in the reporting period. In addition, green Power Purchase Agreements (PPAs) were concluded for the German locations, including the Carl Zeiss Meditec Group. The Company's own generation of renewable electricity, such as through the photovoltaic system at the South Factory in Oberkochen, is also to be expanded.

The Carl Zeiss Meditec Group's total energy consumption for the reporting period is expected to be around 30 GWh3. Accordingly, renewable electricity was purchased in this amount to cover the projected total energy consumption.

A global energy data platform of the ZEISS Group serves to further improve the process for collecting the energy and emissions data. The platform is designed to collect and present data on all Carl Zeiss Meditec Group sites worldwide with significant energy consumption. By the end of fiscal year 2022/23, 20 Carl Zeiss Meditec Group sites had already been included in the program.

More detailed information on the identification, reduction targets and management of Group-wide emissions can be found in the ZEISS Group Sustainability Report 2022/23.

Responsibility for employees

The Carl Zeiss Meditec Group continually invests in the promotion and professional development of its employees and is thus seen as an attractive employer by new talents. In attracting skilled workers, the Group benefits from its good reputation as an innovative and global company with a strong value orientation.

Precision, innovation, and unparalleled quality can only be achieved by motivated and qualified employees and the right management. In light of demographic change and the increasing shortage of skilled workers, the diversity and equal opportunities championed at the Company are key competitive advantages.

Guidelines, structures and processes

With over 4,800 employees worldwide, diversity is part and parcel of everyday life at the Carl Zeiss Meditec Group. The Group is shaped by a diverse array of skills, ways of thinking, leadership and work styles, cultural backgrounds and lifestyles. This is a great advantage because diverse teams are more creative and solution-oriented, which helps them innovate.

Both the Foundation statutes and the ZEISS Group Code of Conduct prohibit any form of discrimination. Corporate Human Resources is responsible for managing activities that promote diversity. It has the support of multiple committees and reports to the Executive Board. The main focus here is on promoting female managers and the corresponding talents. A mentoring program provides the necessary support for the development of female employees. Various options are available that promote the compatibility of work and family. Other initiatives support

global networking and exchange on focus topics such as Leadership, New Work and the Cultural Journey.

Operational co-determination is firmly enshrined at the

Carl Zeiss Meditec Group. The Company negotiates with the respective employee representatives on those issues regulated by legal stipulations or collective wage agreements. In addition, the Group regularly discusses planned changes within committees made up of employee representatives, thus going above and beyond the statutory requirements in Germany.

All Carl Zeiss Meditec Group employees in Germany can participate in the Company suggestion scheme. The submissions are assessed based on their feasibility, impact and efficiency. Employees can find out about the status of their submission online.

In Germany, overall responsibility for promoting a work-life balance lies with Corporate Human Resources of the ZEISS Group. Discussions with the Group Works Council, the works councils, employees and representatives from the different sites in Germany focus on evaluating requirements and taking appropriate measures based on local circumstances at the sites of the Carl Zeiss Meditec Group.

The Carl Zeiss Meditec Group ensures that qualified and motivated talents are attracted to the Company and continue working at the Company for many years to come. The Company offers plenty of training opportunities and works with universities. Both young and more seasoned professionals have the chance to take part in development programs and international networking events. Special training for managers and web-based seminars round off the global education offering.

People Development is responsible for training trainees, strategic personnel development and talent management. It works closely within functional teams and projects with local HR departments, Learning Management as well as Corporate Human Resources. CurioZ is the ZEISS venture responsible for learning at ZEISS. Through the CurioZ digital learning platform, ZEISS contributes to the professional development of its employees.

Objectives and results - Diversity

The Carl Zeiss Meditec Group pursues the goal that all employees can work together successfully and in an appreciative manner, regardless of their professional background, age, gender, religion, origin and working culture. To further strengthen the diversity that it embraces, in fiscal year 2022/23 the Company and its employees in Germany continued to pursue the following initiatives:

• Women Award for outstanding students of IT, business informatics and media informatics
• Mentoring@MED with supportive formats such as diversity dialogs and networking initiatives
• ZEISS Employee Networks
• PROUD@ZEISS Diversity across all ZEISS segments

Objectives and results - Employer-employee relationship The Carl Zeiss Meditec Group aims to further strengthenand expand the relationship between the Company and its employees. In the past, it has paid out a bonus to all eligible employees, allowing them to share in the Company's successful business development. The Company has also promised a profit participation bonus for fiscal year 2022/23 for eligible employees at German sites in accordance with the relevant rules. They will be paid this bonus after the end of the fiscal year in December 2023.

Every two years, the ZEISS Group uses a global and anonymous employee survey - Pulse Check - to measure the development of the corporate culture and the implementation of its strategy among employees. The most recent Pulse Check was carried out in 2022. The results show, among other things, that 74% of employees would recommend the Carl Zeiss Meditec Group as an employer. In 2022, 86% said that they feel their manager trusts them. The results were evaluated in detail and then site-specific measures were derived.

The Culture Ambassador Network also helps to further develop the corporate culture. Employees are organized in this network as cultural ambassadors who support the continuous development of ZEISS corporate culture and carry out local activities at their sites.

Objectives and results - Balancing work and family life In addition to expanding flexible working hours and workplace models, in fiscal year 2022/23 in Germany, employers, the Works Council and employees implemented further measures to make it easier to balance work and family life: the Company supported the construction of a daycare center in Oberkochen to become even more family-friendly.This center opened its doors in 2023. The consultation offerings remain in place for employees caring for family members and children. A Group company agreement provides for employees to work up to 60% of their working hours remotely.

Objectives and results - Attracting and developing employees

The Carl Zeiss Meditec Group aims to both attract new employees and develop the skills of its existing workforce on an ongoing basis. The Company has taken a variety of measures in consultation with the ZEISS Group to ensure this. In order

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to attract new employees, the Company also leverages online channels such as LinkedIn, YouTube, WeChat and ResearchGate. It also takes part in career events and gives presentations

at universities to elevate its reputation as an international employer. The efficacy of these measures can be seen in the consistently positive results achieved in employer rankings for the entire ZEISS Group.

The Carl Zeiss Meditec Group works closely with the ZEISS Group on apprenticeships and combined degree and vocational training programs. Young people receive training in industrial mechanics, precision optics, mechatronics and industrial business management. The apprentices trained by the ZEISS Group in accordance with the personnel requirements of the Carl Zeiss Meditec Group are offered guaranteed employment by the Group. Many graduates subsequently begin their careers at the Carl Zeiss Meditec Group.

In order to retain and develop employees, ZEISS and the Carl Zeiss Meditec Group focus on providing a lively learning organization. The comprehensive offering on CurioZ encompasses in-person and online courses, as well as blended learning formats, and a platform for summaries of non-fiction books. One topic here is digital transformation, with a focus on digital business models that make it possible to transform daily work and create added value for the Company.

Occupational health and safety

For the Carl Zeiss Meditec Group, creating a safe and healthy workplace for its employees is a fundamental obligation.

This obligation also applies to employees of third-party companies acting on behalf of the Group. The Carl Zeiss Meditec Group promotes its employees' health and performance through comprehensive safety measures and occupational health examinations.

By the middle of fiscal year 2022/23, the COVID-19 pandemic and, subsequently, the return of employees to their everyday working life, was one of the biggest challenges for occupational health and safety. The structures and processes previously established provided a good foundation for this. Group-wide crisis management played a key role, alongside site-specific task forces supported by the Occupational Medical Center and a team of experts. Site management teams were also deployed at the German locations.

The majority of the defined procedures adopted and decisions made were set forth as binding for the entire Group in line with national and regional statutory requirements. Measures such as appropriate social distancing and hygiene regulations, compulsory mask-wearing, travel guidelines or requirements for shared use areas initially remained in force, but were then successively withdrawn over the course of fiscal year 2022/23 in line with local statutory requirements.

Guidelines, structures and processes

Occupational safety and protecting the health of all employees are principles enshrined in both the Carl Zeiss Foundation statutes and the ZEISS Code of Conduct and also apply to the Carl Zeiss Meditec Group. The Chief Financial Officer

is a member of the Executive Board and is responsible for occupational health and safety. The respective managers of all ZEISS business units are responsible for occupational h ealth and safety and thus for the continuous improvement of occupational health and safety standards at work as well as the implementation of Group-wide policies.

A central coordinator is responsible for Occupational Health and Safety (OHS) worldwide. All ZEISS Group entities are obliged to appoint an OHS Officer. The duties of the OHS Officer may vary according to local legislation, but always include advising management and assessing occupational health and safety risks. Training courses on this are organized locally by the Group entities; the respective managers are responsible for this.

The management's duties are set out in an internal guideline. This is mandatory for all ZEISS entities and states that the management must provide evidence at the annual management review that:

• All relevant laws and stipulations related to occupational health and safety have been complied with, fulfilled and monitored
• All employees have taken part in general training on occupational health and safety

As per the German Act on Occupational Physicians, Safety Engineers and Other Occupational Safety Specialists, ZEISS must form safety committees (SC) at each entity. They are to meet every quarter to discuss topics related to occupational health and safety and accident prevention. Since at least one representative from each company management team belongs to an SC, it is both an advisory committee and a decision- making body.

In Germany, the Carl Zeiss Meditec Group uses the ZEISS Group's occupational health and safety management system, which is certified to ISO 45001, although the Carl Zeiss Meditec Group itself has not undergone any corresponding certification. However, all processes and procedures are based on this system.

Each month, nine business units of the Carl Zeiss Meditec Group with a total of around 4,100 employees supply statistics on the frequency and severity of work-related accidents. The OHS coordinator reviews the statistics with the head of the respective business unit and the people who submitted the figures. Monitoring plausibility improves reporting quality and more firmly anchors the topic of occupational health and safety within the Company.

Objectives and results

The main objective of the ZEISS Group is to reduce the frequency and severity of work-related accidents. In fiscal year 2022/23 the existing occupational health and safety objective was revised and defined in more detail. The Executive Board has thus set a Lost Time Injury Frequency Rate (LTIFR)* target of less than 1.95 for all production units of the ZEISS Group up until the end of fiscal year 2024/25. This target also applies accordingly for the Carl Zeiss Meditec Group. For fiscal year 2022/23, the lost time injury frequency rate of the production sites of the Carl Zeiss Meditec Group was 2.81**. The majority of accidents that occurred in Germany were caused by personal conduct such as ignoring work instructions or not paying attention. ZEISS is responding to this challenge primarily with training courses for managers and information campaigns for employees.

The ZEISS Group aims to increase the level of standardization in its internal processes related to occupational health and safety. The occupational safety management software Quentic shall therefore be rolled out across all sites over the coming fiscal years. This means work-related accidents, near misses and critical situations can all be reported and monitored. The software also simplifies the planning and documentation

of safety training, the creation of risk assessments and documentation and ensures full transparency of the measures derived from occupational health and safety and fire safety inspections.

Since the software's introduction in fiscal year 2021/22, a total of over 370 managers and occupational safety officers from the Carl Zeiss Meditec Group have been trained on how to use it.

Social engagement

Under the umbrella of ZEISS as a foundation- owned company, the Carl Zeiss Meditec Group promotes progress and access to modern medical technology. The Company supports initiatives that help healthcare professionals around the world improve patients' quality of life.

Since 1889, the Carl-Zeiss-Stiftung statutes have set a clear course: in addition to business growth and accepting responsibility for the Company's employees, they stipulate high standards for social engagement and the continued promotion of science and education as a corporate responsibility.

The Carl Zeiss Meditec Group is a company of the ZEISS Group and fully shares the objectives of the Foundation. The Company delivers innovative technologies and application- oriented approaches ranging from complete solutions for the diagnosis and treatment of eye diseases - including implants and consumables - to innovative visualization solutions in microsurgery. Furthermore, the Company makes financial and in-kind donations in the form of ZEISS products and solutions through a variety of different projects in order to give people around the globe access to high-quality medical care.

Guidelines, structures and processes

The Carl Zeiss Meditec Group's social engagement focuses on charitable initiatives that are directly related to the Company's core businesses, such as ophthalmology and microsurgery.

Previously, the Company's management was responsible for deciding which initiatives would receive support. This task is now the responsibility of the Sustainability Officer appointed in fiscal year 2021/22.

As the sole shareholder of Carl Zeiss AG, the Carl Zeiss Foundation carries out non-profit activities. Carl Zeiss AG in turn holds 59.1% of the equity of Carl Zeiss Meditec AG. The nonprofit activity is defined by the Foundation statutes and financed by the dividend payments from Carl Zeiss AG and SCHOTT AG. In line with the amount of the shareholdings, the dividend distributions by Carl Zeiss Meditec AG to the parent company have indirectly accounted for a significant portion of the total allocation to the Carl Zeiss Foundation in recent years.

Objectives and results - Social engagement

The Carl Zeiss Meditec Group would like to help provide as many people as possible with access to modern healthcare. Therefore the Company supports projects that aim to enhance

the level of medical care for people in underprivileged parts of the world. Support for the training and continuing education of physicians and other medical personnel is a priority.

Training centers for targeted training of medical staff The training and continuing education of ophthalmologists is a key feature of the battle against preventable blindness

• especially in remote regions. In keeping with the motto of helping people to help themselves, the Carl Zeiss Meditec Group has been providing medical care to people in underprivileged regions since 2005 through five diagnosis, treatment, and training centers for eyecare. At these centers, doctors are trained in the use of modern instruments to diagnose and treat eye diseases. In addition, the Company is also helping to equip two special training centers for cataract surgery, where ophthalmologists are trained in the state-of-the-art surgical technique or phacoemulsification.

In order to promote medical care, particularly in economically weak regions, the Carl Zeiss Meditec Group has set up those training centers in collaboration with international organizations such as the International Agency for the Prevention of Blindness (IAPB) and the Christoffel Mission for the Blind (CBM).

Training as the key to good medical care

Good medical training forms the basis of good healthcare. The Carl Zeiss Meditec Group has therefore supported scholarship programs for many years that provide young doctors from resource-poor and underprivileged regions the opportunity to spend time in hospitals in Europe. During placements lasting several months, doctors can improve their skills in ophthalmology and later harness the knowledge gained for their work in their native countries. From 2012 to 2020, the Carl Zeiss Meditec Group supported the Fellowship Program of the Foundation of the International Ophthalmology Association (ICO) and financed ten scholarships. ZEISS has supported the Fellowship Program of the International Ophthalmological Fellowship Foundation (IOFF) e. V. since 2020. In the past three years, the Company has enabled an IOFF scholarship lasting several months and has also co-funded three one-year scholarships. The Carl Zeiss Meditec Group shall continue to support this program.

Alongside training and continuing education, the key to delivering good medical care can also be found in supplying technical equipment to hospitals and medical practices. By donating equipment, the Carl Zeiss Meditec Group is going some way towards supporting nonprofits that campaign to improve medical care worldwide. The commitment here extends beyond the donation of medical technology: at the end of fiscal year 2021/22, the Company decided to make a major