ANNUAL REPORT

2022

Company Overview

INFICON provides world-class instruments for gas
analysis, measurement and control.

Company Overview

These analysis, measurement and control products
are essential for gas leak detection in air conditioning,refrigeration, and automotive manufacturing.
They are vital to equipment manufacturers andend-users in the complex fabrication of semiconductors
and thin film coatings for optics, flat panel displays,
solar cells, LED lighting, and industrial vacuum coating
applications.
Other users of vacuum based processes include thelife sciences, research, aerospace, food and general
packaging, heat treatment, laser cutting, oil and gas
transportation and processing, alternative energy,
utilities, and many other industrial processes.

1

Key Figures

2

Recent Milestones and Achievements

4Target Markets

6

Letter to our Shareholders

8

Investor Relations

10

Global Presence

11

Group Organization

12

Corporate Governance

14

Compensation Report

26

Report of the Statutory Auditor
on the Compensation Report

32

Sustainability Report

34

Financial Report GroupWe also leverage our expertise to provide unique,toxic chemical analysis products for emergency
response, security, and environmental monitoring
as well as instruments for energy and petrochemical
applications.
INFICON was formed in June 2000 from the instrumentation businesses of three well-known international
vacuum technology companies which were merged in
1996 under the Swiss Company OC Oerlikon.

Financial Review

64

Consolidated Balance Sheet

66

Consolidated Statement of Income

67

Consolidated Statement of Shareholders’ Equity

68

Consolidated Statement of Cash Flows69

Notes to Consolidated Financial Statements

70

Report of the Statutory Auditor
on the Consolidated Financial Statements

82

Financial Report INFICON Holding AG

Our initial public offering was November 9, 2000,
both on SIX Swiss Exchange and NASDAQ.
In 2005, INFICON delisted its stock from NASDAQ.
I­ NFICON started to pay out dividends in 2006.
Since our inception, we have acquired and integrated
various companies and technologies.

Balance Sheet

86

Statement of Income

87

Notes to the Financial Statements

88

Appropriation of Available Earnings

93

Report of the Statutory Auditor
on the Financial Statements

94

Innovation is key at INFICON. In our 23 years ofexistence we have developed and launched over
100 new products.

INFICON publishes its annual report online.
This edition has been optimized for easy
reading on your computer and mobile devices.
Additional copies of this report may be downloaded
from the Investors section of our website,www.inficon.com, Investor section

1

Key Figures – At a Glance

19.9%

19.5%

19.2%

17.0%
15.6%

2022

2018

2019

2020

2021

2022

2018

2019

2020

2021

2022

410.4 381.7 397.8 515.8 581.3

2018

2019

2020

2021

81.5

64.8

61.9

100.4 111.6

52.3

53.3

50.5

85.1

46.2

Net sales

Operating income

Cash flow from operations(in % of Net sales)

According to Swiss GAAP FER(US Dollars in Millions, except per share amounts)

Net sales
Research and development
Selling, general and administrative expense
Operating income
in % of net sales
EBITDA
in % of net sales
Net income
in % of net sales
Cash and short-term investments
Cash flow from operations
Capital expenditures
Total assets
Long-term debt
Stockholders’ equity
Equity Ratio in %

2018
410.4
31.7
91.7
81.5
19.9%
90.3
22.0%
64.2
15.6%
62.3
52.3
20.3
271.2
–
205.8
75.9%

2019
381.7
34.4
89.1
64.8
17.0%
73.2
19.2%
52.8
13.8%
57.4
53.8
18.4
275.0
–
208.8
75.9%

2020
397.8
39.0
87.1
61.9
15.6%
72.4
18.2%
49.3
12.4%
60.1
50.5
14.1
305.2
–
222.9
73.0%

2021
515.8
47.0
99.5
100.4
19.5%
111.8
21.7%
80.3
15.6%
65.6
85.1
30.3
365.2
0.2
252.6
69.2%

2022
581.3
45.5
109.6
111.6
19%
122.3
21%
88.5
15.2%
45.9
46.2
33.7
429.4
0.1
277.4
64.6%

Employees

1,118

1,183

1,220

1,297

1,456

2

Key Figures – At a Glance

152.0
Asia Pacific

47.5%

305.3
100.9

Europe25.0%

North America

26.7%

Other
2018

2019

2020

2021

2022

23.1

0.8%
2018

2019

2020

2021

52.5%

Semi & Vacuum Coating

4.0%

Security & Energy

17.4%

Refrigeration, Air Conditioning & Automotive

26.1%

General Vacuum2022

75.9% 75.9% 73.0% 69.2% 64.6%

Equity Ratio

Direct Sales by Geographic Region

2022 Sales by End Market

According to Swiss GAAP FER(US Dollars in Millions, except per share amounts)

Ratios per Share
Earnings per share – diluted
Shareholders’ equity per share – diluted
Free cash flow per share – diluted
Return on equity %

2018

2019

2020

2021

2022

26.40
84.65
12.99
31.1%

21.66
85.66
13.93
25.5%

20.18
91.23
14.28
22.8%

32.87
103.37
25.13
33.8%

36.22
113.47
4.47
33.4%

Dividend/Distribution per share (CHF)
Share price (CHF) at December 31,

22.00
497.6018.00
768.5016.00
808.0021.00
1,338.00

18.00
809.00

Direct Sales by Geographic Region
Asia-Pacific
EuropeNorth America
Other

183.5
113.6
106.1
7.2

153.8
110.6
112.5
4.8

172.6
116.2
104.7
4.3

248
133.6
128.1
6.1

276.3
145.3
155.3
4.4

Sales by End Market
Semi & Vacuum Coating
Security & Energy
Refrigeration, Air Conditioning & Automotive
General Vacuum

184.6
29.0
81.5
115.3

163.7
26.6
84.4
107

191
19.7
79.6
107.5

261.4
21.2
99.8
133.4

305.3
23.1
100.9
152.0

* Free cash flow results from net cash provided by operating activities less purchases of PPE and Intangibles

3Recent Milestones and Achievements

Corporate
CHF 20.00 distribution
per share for 2017 fromlegal reserves from
capital contributions

CHF 22.00 distribution
per share for 2018 fromlegal reserves from
capital contributions
and from retained
earnings

CHF 18.00 distribution
per share for 2019from retained earnings

CHF 16.00 distribution
per share for 2020
from retained earnings

CHF 21.00 distribution
per share for 2021 fromretained earnings
CHF 18.00 proposed
distribution per sharefor 2022

Acquisitions / Divestments+ Final Phase Systems
LLC, Assets of a
Software Developer,
Oct 1, 2018

+ Fil-Tech Inc, Assets
of a Designer andManufacturer of Quartz
Crystal Microbalance(QCM) sensors,
April 30, 2021

+ Techno-Tools Corp.,
Assets of a manufacturer of hand-held leakdetectors, Oct 10, 2018

+ Assets of a distribution
partnership with
Meisa – Montjaes
Electromecánicos e
Ingenieria SA de CV.,
June 2022

Sales / Marketing / Achievements

Launch of “myRGA”
Linxon ® RGA
MPH Transpector
Variant “MSolo” forNASA’s moonlander
mission®

Launch of Webinar
landing page, startingwith March 2020, 54
Webinars with 1,295
attendees have been
carried out
New Service Centerin Dresden (DE) sinceQ4 2020

2020

2019

2018

R&D 100 Finalist Award
for Contura S400

4

New and expanded
sales office & service
centre in Guangzhou

Establishment of a sales
subsidiary in Mexico,
April 2022

New website launched
March 31, 2021

New merged location in
Korea including office,assembly production,
service & repair withown clean room

Technology Day for
Analysts, Investors
and Media,
November 24, 2021 inBalzers/FL

Expansion of worldwide
production capacities by
50% (Balzers (LI),
Cologne (DE) and
Aaland (FI)

Successful placementof INFICON robotic
leak detection combined with 3D vision
solution for refrigeration
Establishment of a
& Air Conditioning
global Digital Demand
Generation Team tostreamline and enhance
digital communication

2022

Launch of CONTURA®
S400 for food packaging
industry in North
America after successful
launch in Europe

ON Semiconductor
Supplier of theYear Award for
FabGuard ®

2021

Moving into new andlarger premises forsales, application,
service, and logistics in
Kawasaki and Chubu,
Japan

Successful launch of
new UL 6000 Fab Plus
Successful launch of
HAPSITE® CDT

Recent Milestones and Achievements

Technology LeadershipTranspector XPR 3+
RGA integrates a newgeneration of miniaturized quadrupole
mass spectrometerfor rapid gas changemonitoring
SPOT CDS500
featuring two
measuring cells forwide range pressure
measurement
IRwin Variants G, theworld’s most compact
methane analyzer withintegrated gas chromatography for ethane
analysis
XL3000, the world’s
most powerful sniffer
leak detector for H2
and Helium

Launch of a compact
Self Plasma OpticalEmission System forcontamination control
of <10nm front end
processes
Fusion LNE certificationfor Biomethane
Application in France

Launch of Transpector ®
CPM version for harsh
Semiconductor
applications
Launch of IMM Thin
Film Deposition Monitor
product family forbetter and more precise
repeatability

Successful FabGuard ®
solution for Subfab.

Launch of D-TEK 3,
an award-winning new
hand-held Refrigerant
Launch of INFICON
Leak Detector
D-TEK Stratus®, the first for unparalleledrefrigerant leak detector performancethat pinpoints leaks andguides to leaks with theinnovative cloud hunting
modeTranspector AXP,
latest model in thefamily of marketleading Transpector
RGAs
UL6000 Fab, mostprecise, durable andthus reliable testing
system on the market
Augent ® OPG550
Optical Plasma
Vacuum Gauge is
a compact andintelligent solution for
vacuum monitoring
xPart Coatings,
highly uniform,
particle free, atomic
layer deposition (ALD)
thin films applied
on customer specificthree dimensionalparts for use in
extreme harshapplications such as
semiconductor
production processes

New UL6000 Fab
PLUS, a all-new leakdetector featuring thenovel I-RISE
technology with a rateof-rise in under 10
seconds
Ion Reference Gauge
IRG080, a first-of-akind vacuum sensor
developed for precise
total pressure
measurement invacuum systems
Transpector® APX, 3
additional variants
were launched tosupport the emerging
customer needs ofprocess monitoring forharsh applications in
the evolution of
Moore’s Law
HP100, newest sensor
in our optical portfolio.
The sensor is a selfgenerating plasmabased sensor which
extends the range fromour current Quantus
LP100 sensor

5

HAPSITE® CDT,
extended capabilities
over the legacy
HAPSITE ER continue
to show high customer
value as demonstrated
at military exercises

2022

2021

2020

2019

2018

IMC-300, newest
deposition controller
used in OLED and
optical coating
industries

Target Markets

Semi & Vacuum Coating

Refrigeration,
Air Conditioning& Automotive

Security & Energy

General Vacuum

MarketIn situ metrology and processcontrol for semiconductor
manufacturers, manufacturersof capital equipment for
semiconductor devices (OEMs),
and for thin film coating
applications including flat panel
displays (LCD and OLED),
solar cells, LED lighting
systems, data storage media,
scientific and consumer
optics, and architectural glass
coatings.

Analysis of chemical agents andtoxic industrial chemicals in
air, water or soil for military,
emergency response andenvironmental events.

Leak detection for quality
control in the manufacturing ofcommercial and consumer air
conditioners and appli­­ances.
Technologies for air conditioners and airbags, fuel tanks,lithium-ion batteries, and other components in the automotive industry.

Gas analysis for petrochemical industry, including oil
and gas production and refining,alternative energy sources.
Leak detection and monitoringof landfills, industrial
processes, and utilities.

After-sale service for repair.

Vacuum technology applications such as aerospace, heat
treating, analytical instrumen­­­­­
tation, food packaging, vacuum
furnace and metallurgy,
and research reached throughprivate-label partners who
are global manufacturers of
vacuum pumps. INFICON
also serves a growing portionof this market directly.

Growth Drivers
Growing demand forelectronic content in
consumer products.

Imminent threats to nationaland global politicaland economic stability.

Regulations to reduce environmental pollution andincrease energy efficiency.

Increasing manufacturing
complexity.

Fear of terror, leads govern­ments to allocate resources
to homeland security.

Rising demand for air
conditioning and new
refrigerants.

Government agencies(military, police, etc.) facedwith more and new tasks
for national emergencies.

Growing demand for household appliances in emerging
economies.

Miniaturization for portability
and mobile communication.
Rising demand for intelligent
sensors (MEMS, optical, etc.).
Strong growth of new
applications (Big Data, IoT,
Virtual / Augmented reality,
artificial intelligence, 5G andautonomous driving).

Lithium-ion battery and fuelcell technologies, E-mobility.

Growing environmental
concerns and increase
needs for alternativ energy
technologies.

Increasing demand for leaktight automotive parts.

Life Science.
R&D budgets.
Easier use of vacuum
for industrial and research
applications.
Rising quality standards.
Global GDP growth.
New energy and fuelapplications.
Food packaging, extended
shelf life.

Long-term market trends
Ambient Intelligence

Sustainability

Ambient Intelligence

Sustainability

Sustainability

Wealth / consumption

International Security

Wealth / consumption

International Security

6

Wealth / consumption

Target Markets

Semi & Vacuum Coating

Refrigeration,
Air Conditioning& Automotive

Security & Energy

General Vacuum

Products
Industrial gas analyzers,
mass spectrometers, andprocess control sensors.

Industrial gas analyzers,
mass spectrometers, andprocess control sensors.

Vacuum gauges, controllers,components and feedthroughs.
Leak detectors

Leak detectors

Vacuum gauges, controllers,components and feedthroughs.

Vacuum gauges, controllers,components and feedthroughs.

Leak detectors

Leak detectors

Thin film controllers
Chemical detectors
and monitors
Micro gas chromatography

Micro gas chromatography

Application-based
software solutions
Quartz crystal technologies

Quartz crystal technologies

RF sensing technology

Service tools

xParts coating technology

7Letter to our Shareholders

Dear Shareholders

importantly, most of our colleagues at work copedwell with the pandemic and we were thus able to keep
our operations up and running.

We are pleased to tell you that INFICON mastered significant challenges of the business year 2022 very well.
Sales grew organically by 17.7% to USD 581.3 million
and despite the demanding business conditions, we
successfully defended our earnings margins.

In parallel, management expanded the world-wide
manufacturing capacities by roughly 50% and kept the
expansion projects well on track. The board considers
this as a great achievement. In 2022 the whole Groupinvested around USD 34 million in these expansion
measures and even topped the prior year investmentsof around USD 30 million. These complex expansion
project asked for many adaptations of our processes andprocedures yet did not cause any serious interruptions.
INFICON is excellently positioned today to service ourcustomers even more timely and flexibly in the future.

The strongest sales increase was recorded in INFICON’s
biggest target market Semi & Vacuum Coating, where
sales grew by 16.8% to USD 305.3 million and accounted
for 52.5% of Group sales. Demand from both equipment manufacturers as well as logic and memory chipproducers remained high. After a very strong year in
Asia in 2021, we saw more momentum in America andEurope in 2022. Sales to customers in the General
Vacuum market surged by 13.9% to USD 152.0 million
or 26.1% of Group sales. Sales generated in the Refrig­
eration, Air Conditioning & Automotive market showed anincrease of 1.1% to USD 100.9 million. This market
accounted for 17.4% of Group sales and benefited wellfrom the increasing demand for leak testing of batteries
and battery modules. As expected, shipments of our
man-portable analysis system HAPSITE picked up in
the second half of the year. And lastly, Security & Energy
market reported 9% higher sales of USD 23.1 million.
For more financial details, please consult the financial
review further down in this Annual Report. Overall,
INFICON is pleased with the 2022 financial results andthe Board of Directors proposes to the Annual General
Meeting of Shareholders the distribution of a cash dividend of CHF 18.00 per share.

Because of the war in Ukraine, the chances of sufferingfrom energy shortages became immanent and asked for
management attention and fast action. We took measures
to guarantee an uninterrupted energy supply installinge.g., mobile power generation units at our factories.
INFICON management continued to invest into future
growth by expanding the research and development
teams internationally. Important new products were introduced during 2022 and a solid pipeline of productand technology innovations is ready for launch in 2023.
More interesting opportunities are coming up for thefollowing years. Keeping the product and service portfolio at the forefront of technology is vital to expand
INFICON’s global market position.
Considerable means were again devoted to making
INFICON’s operations more sustainable. All production
sites were switched to 100 percent renewable electri­
city. At Balzers, after a thorough analysis of the heating
and cooling systems, the annual consumption was
significantly reduced by 50%. With heat recuperationfrom the production processes the energy consumption will be further reduced in the coming years. In Syracuse/New York, the colleagues can enjoy a newlandscaping concept designed to promote biodiversity around the production and office buildings.
Shareholders are invited to read more about INFICON’s
achievements in this realm in the ESG report chapter
included in this Annual Report.

Let's take a look at the major challenges and key issues
in 2022.
While the COVID-19 pandemic today seems to be for themost part behind us, it kept a tight grip on all of us formost of 2022. It affected, even interrupted international
supply chains, caused many shortages for metals andelectronic components and devices, led repeatedly to
shut-downs in supply industries in Asia – and especiallyin China. Cross-border meetings in person were still
complicated. INFICON managed to secure its vital
supplies of electronic components, yet at temporarily
significantly higher cost. We maintained trusted anddurable relationships with our key customers. And most8

Letter to our Shareholders

A further major objective of 2022 was to design a smoothand seamless transition process as key management
positions at Group level and at various key production
sites changed during the year. INFICON was very
successful in this process, as three out of four positions
could be filled with internal talents and in addition we
successfully filled one position with a female. Most prominently, Lukas Winkler – CEO of the INFICON Groupfor 20 years – decided to pass his leadership position by
year-end. With Oliver Wyrsch, INFICON was able topresent an internal successor for the position of GroupCEO in spring. Lukas and Oliver greatly worked together during the remainder of the year to provide fora seamless hand-over. Oliver was formerly in chargeof the American business of INFICON. With his nomi­
nation, the American operations based in Syracuse/
New York got a new leader. We also saw managementchanges in Europe: the long-time managing directors
at Cologne and Balzers retired from their positions, too.

We are also grateful for the good relationships with
our supplier, business counterparts, and customers. We
experience our day-to-day interaction as a mutually
beneficial partnership based on transparency, cooperation, and trust. We look forward to continuing our
dialogue with all of you.
Finally, yet importantly, we would like to thank you, dear
Shareholders, for your loyalty and support. We aredelighted to invite you in person to our upcoming Annual
General Meeting where we can again interact directly.

Yours sincerely,
Dr. Beat E. Lüthi
ChairmanLukas Winkler
CEO

Matthias Tröndle
CFO

Another aspect of leadership at INFICON are the immanent changes in the Board of Directors. Dr. Richard
Fischer decided – after 20 years of Board Membership –to hand over this strategic leadership position. Board
and Management would like to thank Richard Fischer
for his devoted work in INFICON’s steering body andthe many important contributions he made to INFICON’s
strategic development with his broad international
industry network.
The Board of Directors proposes to elect Lukas Winkler
as a new member of the Board at the upcoming Annual
General Meeting, in order to count on Lukas Winkler’s
long-established global industry network also in the
future.

From left to right: Matthias Tröndle (CFO), Dr. Beat E. Lüthi(Chairman), Oliver Wyrsch (CEO since 01/01/2023), Lukas Winkler(CEO until 31/12/2022)

At year-end, around 1500 INFICON colleagues contributed to the Group result. This is a considerable increaseover the prior year. Attracting new and retaining of hired
talent at all levels and in all functions throughout theorganization is very important to us and a clear priority.
INFICON is known in the marketplace as a good andcaring employer. The many long-time employees are atell-tale proof of the job attractiveness at INFICON.
We would like to take this opportunity to welcome all new
employees and thank the growing INFICON staff for
their continued commitment and work. Together we mastered all the challenges of 2022. Thank you very much.
9

Investor Relations
1600

40,0001400

35,0001200

30,0001000

25,000800

20,000600

15,000400

10,000200

5,000

Share pricedevelopment

2018

2019

2020

2021

Sales volume in
INFICON shares

2022

Company Capital		

The share capital of INFICON Holding AG consists of 2,445,161 registeredshares with a nominal value of CHF 5 each.

Stock Market Trading

The registered shares are listed on SIX Swiss Exchange under– the SIX Security Number 1102994– ISIN CH0011029946– the symbol IFCN

Important Dates*

March 30, 2023: Annual General Meeting of Shareholders
April 26, 2023: First quarter 2023 results
July 27, 2023: Second quarter 2023 results / half-year results 2023
October 19, 2023: Third quarter 2023 results
March 2024: Fourth quarter 2023 results / Year-end results 2023

*Subject to changeInternet / E-mail Alerts

E-mail alerts: The latest financial information from INFICON can automatically besent via E-mail alert; sign up is available in the Investors section of the INFICON
website www.inficon.com

Key figures per share (CHF)
Price at year-end
Highest price
Date
Lowest price
Date
Earnings per share (diluted)
Equity per share
Dividend/Distribution per share*	
The proposed distribution is to be paid out from legal reserves.

10

2018

2019

2020

2021

2022

497.60636.00
Apr 23403.80
Oct 11
26.40
84.65
22.00

768.50779.50Dec 23468.40
Jan 03
21.66
85.66
18.00

808.00821.00
Dec 02488.60Mar 23
20.18
91.23
16.00

1,338.00
1,362.00
Dec 28800.00
Jan 0432.87
103.3021.00

809.001,370.00
Jan 04633.00
Sep 2936.22
113.4718.00

Global Presence

North America
27% Sales
599 Employees

INFICON Holding AG
Bad Ragaz, Switzerland
Parent Company

Europe25% Sales
614 Employees

Asia-Pacific
48% Sales
243 Employees

INFICON AG
Balzers, Liechtenstein
INFICON Inc.
Syracuse, NY, USA

INFICON EDC Inc.
Overland Park, KS, USA

INFICON AB
Linköping, Sweden

INFICON InstruTech LLC
Longmont, CO, USA

INFICON Instruments Shanghai Co. Ltd.
Shanghai, China
INFICON GmbH
Cologne, Germany
INFICON Aaland Ab
Mariehamn, Finland
INFICON S.A.R.L.
Courtaboeuf, France
INFICON Ltd.
Blackburn, United Kingdom
INFICON S.r.l.
Bozen, Italy
INFICON Pte. Ltd.
Singapore
INFICON Ltd.
Hong Kong
INFICON (Guangzhou) Instruments Co., Ltd.
Guangzhou, China
INFICON Ltd.
Chubei City, Taiwan
INFICON Ltd.
Bungdang, Korea
INFICON Co., Ltd.
Kawasaki-Shi, JapanINFICON ApS
Copenhagen, Denmark
IFCN.SW
Corregidora Qro., Mexico

11

Group Administration / Management
Manufacturing
Sales entities
Sales offices

Group Organization(as of February 28, 2023)

Board of Directors and Group Management

From left to right: Dr. Reto Suter, Matthias Tröndle (CFO), Beat Siegrist, Lukas Winkler (CEO until 31/12/2022), Vanessa Frey,
Dr. Beat Lüthi (Chairman), Oliver Wyrsch (CEO since 01/01/2023), Dr. Richard Fischer

12Group Organization(as of February 28, 2023)

Board of Directors
Dr. Beat E. Lüthi – Chairman
Dr. Richard Fischer – Vice Chairman
Vanessa Frey – Member
Beat Siegrist – Member
Dr. Reto Suter – Member

Compensation and Human
Ressource Committee
Beat Siegrist – Chairman
Dr. Richard Fischer
Dr. Reto Suter

Audit Committee
Dr. Reto Suter – Chairman
Vanessa Frey
Beat SiegristGroup Management
Lukas Winkler – President and CEO
until Dec 31, 2022
Oliver Wyrsch – President and CEO
since Jan 1, 2023
Matthias Tröndle – Vice President and CFO

Board and Executive
Secretary

Elisabeth Kühne, General Secretary to the Board of Directors
INFICON HOLDING AG, Hintergasse 15 B, CH-7310 Bad Ragaz, Switzerland
Tel. +41 81 300 4980
Fax +41 81 300 4988
E-mail: elisabeth.kuehne@inficon.com
13

Corporate GovernanceIntroduction

1 Group Structure and Shareholders

This Corporate Governance Report explains the principles of management and control of INFICON Holding AG
at the highest corporate level in accordance with the
Directive on Information relating to Corporate Governance (the Corporate Governance Directive) in its current version issued by the SIX Swiss Exchange onJune 29, 2022 entry into force Jan 1, 2023.

1.1 Group Structure
Operational Group Structure
See page 13.
INFICON Holding AG is the parent company of the
INFICON group which operates from 17 countries andconsists of a parent company, 8 manufacturing com­panies and 11 sales and service subsidiaries. The legal
entity structure of the INFICON group is seen on page 11.

Corporate governance of INFICON Holding AG complies with the principles and recommendations of the“Corporate Governance – Swiss Code of Best Practice”.

Listed Corporation: INFICON Holding AG
INFICON Holding AG is based in Bad Ragaz, Switzerland.
It has a share capital of made up of 2,445,161 shareswith a nominal value of CHF 5 each. Registered sharesare listed on SIX Swiss Exchange under security number 1102994, ISIN CH0011029946 and symbol IFCN.

INFICON Holding AG is committed to continuallyreviewing its corporate governance framework, witha view to related developments.
Information on Board of Directors and Company Management compensation is outlined in our Compensation
Report, beginning on page 26.

Since January 3, 2012, the registered sharesof INFICON Holding AG are traded on SIX Swiss
Exchange’s Domestic Standard.

Furthermore, the Company’s internal guidelines regarding corporate governance are provided in its Articles
of Incorporation, Organizational Regulations, Board
Committee Charters, Code of Business Conduct andEthics, as well as internal policies.

Market capitalization at December 31, 2022 was
TCHF 1,978,135 based on shares outstanding.
Share Capital and Percentage ofShares Held by Subsidiaries
See statutory financial statements, Note 2.4,
“Investments”.

The following Corporate Governance Report follows
the structure of the SIX Directive on Information relating to Corporate Governance.

1.2 Significant Shareholders
Shareholder Structure
Based on number of registered shareholders as ofDecember 31, 2022.
Number of shares> 50,000
10,000–50,000
1–9,999
Total

14

Number of shareholders
4
13
4,394
4,411

Corporate Governance

2 Capital Structure

Shareholders by Country
Based upon number of registered shareholders as ofDecember 31, 2022.
Country
Switzerland
Germany
United States of America
Liechtenstein
Rest of Europe
Rest of World
Total

2.1 Capital (Issued, Authorized & Conditional)
Registered shares of CHF 5 each at December 31, 2022:

Number of shareholders
3,950
217
62
48
63
71
4,411

Issued share capital
Conditional share capital

2,445,161
9,694

TCHF 12,226
TCHF 48

The issued share capital comprises 2,445,161 registeredshares of CHF 5 each. Each share entitles the registered owner to one vote at the General Meeting of Shareholders, as well as a share of dividends or distribution
from capital contribution reserve, if any, declared by theCompany and proceeds from liquidation, correspond­
ing to its nominal value as a percentage of the total nominal value of issued share capital.

Major Shareholders
See statutory financial statements, Note 3.2,
“Significant Shareholders”.
1.3 Cross-shareholdings
INFICON Holding AG has no cross-shareholdings.

2.2 Authorized and Conditional Share Capital
The Board of Directors is currently not authorized toissue new registered shares.
The Articles of Incorporation provide for a conditional
capital (according to Art. 653 of the Swiss Code ofObligations) of a maximum of TCHF 48 through theissuance of 9,694 registered shares of CHF 5 eachby the exercise of option rights granted to employees andmembers of the Board of Directors of the Company.
Since May 7, 2021, no exercisable options exist. In 2021
3,200 options had been exercised.
2.3 Changes in Shareholders’ Equity
Changes in shareholders’ equity are presented in the consolidated statements of shareholders’ equity section of theconsolidated financial statements for INFICON Holding AG
for the years ended December 31, 2022 and 2021.
2.4 Shares
For further information refer to Note 2.1, “Capital” asabove. No participation certificates are issued.
2.5 Profit Sharing Certificates
The Company currently has no profit sharing certificates.
2.6 Limitations on Transferability andNominee Registrations
The Articles of Incorporation contain no special regulations regarding limitations on transferability and nominee
registrations.
15

Corporate Governance

2.7 Convertible Bonds and Warrants / Options
In 2014, the Directors’ Stock Option Plan and in 2015
the Key Employee Stock Option Plan were terminated.
On May 7, 2021, all exercisable options had been
exercised or had expired.

• the ultimate management, i.e. the determination of thestrategy, its resources and its supervision, of the Holding and the Group and the issuance of the necessary
policies and directives including the definition of corporate goals and the planning of financial resources•	the determination of the organization of the Holding
and the Group;•	the structuring of the accounting system, the financial
controls and the financial planning of the Holding and
the Group;• the appointment and the removal of the Members of theGroup Management, the approval of their job descriptions
and the granting of the signatory power to members of
the Group Management and to employees of the Holding;•	the ultimate supervision of the persons entrusted withthe management of the Holding and the Group, inparticular with regard to compliance with the law, theArticles of Incorporation, regulations and directives;•	the preparation of the Holding’s business report andother reports including but not limited to the compensation report and the report on non-financial matterspursuant to Article 964c CO as well as the preparation of the Shareholders’ Meetings and the implementation of their resolutions;•	the submission of a request for a debt-restructuringmoratorium and notification of the judge in case ofoverindebtedness of the Holding;•	the passing of resolutions regarding the subsequent
payment of non-fully paid-in shares;•	the passing of resolutions confirming capital increases in the share capital and regarding the amendments
to the Articles of Incorporation entailed thereby;•	the examination of the professional qualifications ofspecially qualified auditors in those cases in which
the law foresees the use of such auditors.

The Company currently has no convertible bonds orbonds with warrants.

3 Board of Directors
3.1 Members of the Board of Directors, other­Activities and Vested Interests, and Internal­Organizational Structure
Board of Directors and Management Board
Our Articles of Incorporation provide that the Board of
Directors may consist of three or more members at any
time. Directors are elected and removed by shareholder
resolution. Members of our Board of Directors serve oneyear terms and may be re-elected upon completion of
their term of office. The shareholders may remove thedirectors without cause. Our five directors currently in
office were elected by shareholder resolution.
All members of the Board of Directors are non-executive
Board members.
According to the law, the Board of Directors is responsible
for the ultimate direction and supervision of INFICON
Holding AG. The Board of Directors has delegated the
conduct of the day-to-day business operations to theCompany’s Group Management comprising the Chief
Executive Officer and Chief Financial Officer. GroupManagement is responsible for the management of
INFICON Holding AG and for all other matters except
for those reserved by law and the Articles of Incorporation.
The Board of Directors is required to resolve all matters,
which are not defined by the law, Articles of Incorporation, or management bylaws as being the responsibilityof any other governing body. According to the Swiss
Code of Obligations and to the Articles of Incorporation
the following non-transferable and inalienable responsibilities are incumbent on the Board of Directors:

The Board of Directors, as of the date of this report, hasestablished an Audit Committee and a Compensationand Human Resources Committee. Each of these committees has regulations, which outline its duties andresponsibilities. The Board of Directors elects the Chairman for each committee. The committees meet regu­
larly carrying out preparatory work to provide the Boardof Directors with updates and recommendations at its
regular meetings. Their respective chairperson sets
the agendas for the committee meetings. The length ofthe meetings range from an hour up to an entire day,
depending on the agenda as decided by the chairman.
16

Corporate Governance

The Audit Committee
The Audit Committee consists of three non-executive
members of the Board of Directors. Currently, the Audit
Committee is comprised of the following members:

Sustainability is anchored at all corporate levels at
INFICON. The Board of Directors determines the corporate strategy, including all aspects relating to sustainability / ESG. Sustainability topics are discussed several
times a year by the Board of Directors and GroupManagement depending on their urgency. To strengthen
its sustainability approach, the Board has alreadydefined a dedicated representative for ESG and sustainability matters in 2020 in the person of Dr. Richard
Fischer. Furthermore, it has already been decided thata Sustainability Council consisting of 3 persons (twoBoard members and Group Management) will be established in 2023. The council will define roadmap, reviews
targets, studies the regulatory developments in the ESG
area and supports the Audit Committee in non-financial reporting.

Dr. Reto Suter, Chairman
Vanessa Frey
Beat Siegrist
The responsibilities of the Audit Committee include:• 	Recommending to the Board of Directors the independent public accountants to be selected to conduct
the annual audit of our books and records;• 	Reviewing the proposed scope of such audit andapproving the audit fees to be paid;• 	Reviewing the adequacy and effectiveness of our
accounting and internal financial controls with theindependent public accountants and our financial
and accounting staff;• 	Reviewing and approving transactions between the
Company, its directors, officers and affiliates; and• 	Reviewing and reassessing, on an annual basis, theadequacy of our audit committee charter.

Sustainability reporting on all material topics, results
and target achievement for further development ofmaterial topics (see page 57) are discussed and developed together with Group Management and the dedicated Board of Directors representative several times
a year and at least two times a year by the Board of
Directors and Group Management. The sustainability
reporting is reviewed and approved by the Board of
Directors and Group Management as part of the development of the Annual Report.

The Compensation and Human Resources Committee
The Compensation and Human Resources Committee
is to provide a general review of our compensation
and benefit plans to ensure they meet corporate financial
and strategic objectives, as well as to make recommendations to the Board regarding appointment, dismissal and career development of executive management
positions. The responsibilities of the Compensation and
Human Resources Committee also include the goal
settings and the administration of employee incentive
plans. The Compensation and Human Resources
Committee consists of three non-executive members of
the Board of Directors. Currently, the Compensationand Human Resources Committee is comprised of thefollowing members:

Overview Board
Board of Directors (5 members)
ChairmanDr. Beat E. Lüthi
Members
Beat Siegrist, Vanessa Frey
Dr. Reto Suter,
Lukas Winkler (proposed member
from 2023)
Audit Committee
Dr. Reto Suter, Chairman
Vanessa Frey
Beat SiegristFinancial- and non-financial
reporting, risk management,compliance, audit, accounting &internal controls, financial healthCompensation and Human
Ressource Committee
Beat Siegrist, Chairman
Dr. Reto Suter
Lukas Winkler (proposed member
from 2023)

Compensation and benefits,
nomination, career development,
goal setting, culture

Sustainability Council
Lukas Winkler, Lead (proposed
member from 2023)
Dr. Reto Suter
Matthias Tröndle, CFO

Beat Siegrist, Chairman
Dr. Richard Fischer
Dr. Reto Suter

New Council, formally establishedin 2023
Council defines roadmap, reviews
targets, studies the regulatory
developments in the ESG area,
supports Audit Committee in non
financial reporting.

17

Corporate GovernanceFrequency of Meetings of the Board of Directors
and its Committees
The Board of Directors holds four or more meetings per
year and additional ad hoc meetings and conference
calls as necessary. The Audit Committee holds threemeetings per year in addition to five virtual meetings.
The Compensation and Human Resources Committee
holds three or more meetings per year in addition to
one virtual meeting.

The Company’s Board of Directors is composed of:Dr. Beat E. Lüthi, Citizen of Switzerland, 1962
Chairman of the Board of Directors
Educational Background
1980–1986 Swiss Federal Institute of Technology,
ETH, Master in Electrical Engineering
1987–1990 Ph.D. at ETH / BWI on “Managementof Industrial Software Projects”
1994
INSEAD, Fontainebleau France,
International Executive Program

The following table does not include preparationof meetings, travel time as well as various separate
meetings:

Executive Experience
1987–1990 Zellweger Uster, Project Manager
1990–1998 Mettler-Toledo, Business Unit Manager
1994–1998 Mettler-Toledo (Switzerland) AG, General
Manager
1998–2002 Feintool International, CEO and Memberof the Board
2002–2007 Mettler-Toledo, Laboratory Division CEO
Since 2007 CTC Analytics AG, CEO and Member ofthe Board• Meetings with audit firm
• Meetings with Group Management• Meetings with shareholders
Number of meetings and conference calls in 2022:
Compensation and
Human
Board ofAudit Resources
Directors Committee Committee

Number of meetings in 2022
Approx. average duration ofphysical meetings (in hours)
Dr. Richard Fischer
Vanessa Frey
Dr. Beat E. Lüthi
Beat Siegrist
Dr. Reto Suter
KPMG calling in
Number of virtual meetingin 2022
Approx. average durationof virtual meetings (in hours)
Dr. Richard Fischer
Vanessa Frey
Dr. Beat E. Lüthi
Beat Siegrist
Dr. Reto Suter
KPMG

4

3

3

7.2 h

0.8 h

1.3

4
4
4
4
4
0

3
3
3
3
3
2

3
3
3
3
3
0

2

5

1

0.6 h

1h

0.5 h

2
2
2
2
2
0

3
4
5
5
5
2

1
1
1
1
1
0

Previous Board Mandates
2002–2005 Soudronic AG, Member
2007–2010 Uster Technologies AG, Member
2007–2011 Addex Pharma SA, Member
2007–2011 Stadler Rail AG, Member
2002–2013 Bossard AG, Member
2017–2020 Orell Füssli Holding AG, Member
Current Board Mandates
Since 2010 Straumann AG, Member
Since 2012 INFICON Holding AG, Chairman
Since 2021 Skan AG, Member

The meetings took place in Zurich (Switzerland),Vitznau (Switzerland), Cologne (Germany) and Balzers (Liechtenstein).
18

Corporate Governance

Dr. Richard Fischer, Citizen of Austria, 1955
Vice Chairman of the Board of Directors and Memberof the Compensation and Human Resources Committee

Current Board Mandates
Since 2002 Corisol Holding AG, Member
Since 2008 Swiss Small Cap Invest, Member
Since 2008 KWE Beteiligungen AG, Member
Since 2012 INFICON Holding AG, Member
Since 2014 Schweiter Technologies AG, Member
Since 2018 Tata 1mg, Member

Educational Background
1973–1979 Technical University of Vienna,
Master of Science in Electrical andElectronical Engineering
1979–1982 Technical University of Vienna,
Assistant Professor, Ph.D. with excellence

Beat Siegrist, Citizen of Switzerland, 1960
Director, Member of the Audit Committee, Chairman of
the Compensation and Human Resources Committee

Executive Experience
1982–1984 Gama, Access Systems, Austria,
R&D Manager and Technical Director
1984–2004 VAT Holding AG, Switzerland, CEO

Educational Background
1980–1985 Swiss Federal Institute of Technology,
ETH, Master in Electrical Engineering
1987–1988 INSEAD, Fontainebleau France, MBA

Previous Board Mandates
1990–2011 ARS GmbH, Member
2008–2009 Netservice AG, Chairman
2003–2014 VAT Holding AG, Switzerland, Chairman

Executive Experience
1985–1986 Contraves AG (Defense Equipment),
Development Engineer
1987–1993 McKinsey&Co. (Consulting), first McKinsey
Fellows in Switzerland, Consultant andProject Manager
1993–1995 Outsourcing AG (Reorganisation and Outsourcing of Productions), Founder and CEO
1996–2008 Schweiter Technologies (Machinery
Equipment for Textiles, Semiconductor
and Optics), CEO
2008–2012 Essilor (Ophthalmic Lens Manufacturer),
Member of the Executive Team and President
of machinery division Satisloh, which wassold to Essilor from Schweiter Technologies

Current Board Mandates
Since 2003 INFICON Holding AG, Member
Since 2020 Obrist Engineering, Member
Vanessa Frey, Citizen of Switzerland, 1980
Director, Member of the Audit Committee
Educational Background
2000–2002 University of St. Gallen, Switzerland
Undergraduate Studies in Economics,
Business Administration and Law
2003–2004 Stockholm School of Economics, Sweden
Master of Science in International
Economics and Business Major in FinancePrevious Board Mandates
2002–2012 Ismeca Semiconductor Holding SA, Chairman
2000–2013 Satisloh Holding AG, Member
1996–2017 SSM Schärer Schweiter Mettler AG, Chairman
2013–2018 Garaventa Accessibility AG, Chairman

Executive Experience
2004–2006 Handelsbanken Capital Markets,
Corporate Finance, Stockholm, Sweden
2007
HSZ Group, Asset Manager, Hong Kong
Since 2007 Corisol Holding AG, Family Office, Zug, CEOCurrent Board Mandates
Since 2003 Phoenix Mecano AG, Member
Since 2008 Schweiter Technologies AG, Chairman
Since 2010 INFICON Holding AG, Member
Since 2019 The Island Rum Company AS, Member
Since 2022 Bomatec Holding AG, Member

Previous Board Mandates
2010–2011 South Pole Carbon Asset Management
2010–2012 Absolute Invest, Member
2012–2018 Garaventa Lift AG, Vice Chairwoman
2016–2019 Zur Rose Group AG, Member
19Corporate Governance

Dr. Reto Suter, Citizen of Switzerland, 1971
Director, Chairman of the Audit Committee, Member of
the Compensation and Human Resources Committee

The members of the Board of Directors were electedindividually as follows:
Board of Directors
Dr. Beat E. Lüthi
Dr. Richard Fischer
Vanessa Frey
Beat Siegrist
Dr. Reto Suter

Educational Background
1991–1996 University of Zurich, Switzerland
Master’s Degree in Banking and Finance
1996
University of Washington, Seattle, Visiting
Student MBA Courses
1997–1999 University of Zurich, Switzerland
Ph.D. in Banking and Finance

DateFirst Elected
May 2012
May 2003
May 2012
May 2010
March 2021

Term
ExpiresMarch 2023
March 2023
March 2023
March 2023
March 2023

3.4 Internal Organizational Structure
Refer to page 13.

Executive Experience
1997–1999 Go4Equity AG, Switzerland, Co-Founderand CFO
2001–2004 Tendo Corporate Finance, Switzerland,
Partner
2004–2013 Horizon21, Switzerland, Partner (–2009),
CEO (–2011), CIO (–2013)2013–2017 Lonrho Ltd., London, COO/CIO, Member ofthe Main Board, Member of the Executive
Management Committee
Since 2017 Siegfried Holding AG, Switzerland, CFO

3.5 Definition of Areas of Responsibility
The Board of Directors has delegated authority to theCompany’s Group Management comprising the Chief
Executive Officer and Chief Financial Officer to execute the Company’s approved annual budget. INFICON
Holding AG has a comprehensive financial and enterprise reporting system to gather and report its financial
results. The quarterly financial results are reviewed
and approved by the Audit Committee prior to issuanceto the public. Additionally, the Board of Directors provides oversight and approval for potential acquisitions
or strategic partnerships.

Previous Board Mandates
2004–2014 Nord-Süd Verlag AG, Chairman
2009–2011 Invision Private Equity AG, Member
2014–2017 Gallimedia Holding AG, Member
2013–2018 Lonrho Holdings Limited, London

The Sustainability/ESG responsibility was defined in theyear 2020 by the Board of Directors: We have selected
and appointed both a ESG representative from the Boardof Directors (Dr. Richard Fischer) and the CFO andGroup Management member Matthias Troendle.

Current Board Mandates
Since 2017 Siegfried Group, various
Since 2021 INFICON Holding AG, Member
3.2 Other Activities and Vested Interests
Pursuant to Article 21 c) of the company’s Articles ofIncorporation the Board members maximum number ofboard mandates is twenty-five with not listed companies whereof five with listed companies. For further information refer to Note 3.1.

3.6 Information and Control Instruments vis-à-vis
Group Management
Information regarding the current state of the business isprovided continuously at the meetings of the Board of
Directors in an appropriate format and is presented by
the persons bearing responsibility for oversight of thefinancial and operational aspects of the business.

3.3 Elections and Terms of Office
In accordance with the Ordinance and the company’s
Articles of Incorporation members of the Board of
Directors and its Chairman as well as Compensationand Human Resources Committee members areelected for a respective one-year term of office.

The Board of Directors receives monthly reports fromGroup Management.
Furthermore, the Audit Committee reviews the financial
performance and assesses the effectiveness of theinternal and external audit processes as well as theinternal risk management and processes.

Election occurs at the General Meeting of Shareholders.
20Corporate GovernanceIndependence criteria
For the INFICON Board, a director is considered independent if the director:•is not, and has not been for the prior three years,
employed as an executive officer or in another function
at the Group or any of its subsidiaries;•is not, and has not been for the prior three years,
an employee or affiliate of our external auditor;•does not maintain a material direct or indirectbusiness relationship with the Group or any of its
subsidiaries, and•has not been at any time during the prior three years,
part of an interlocking directorate in which a memberof the Executive Board serves on the compensationcommittee of another company that employs the Board
member.

Members of the Board of Directors and Group Management attend the Audit Committee meetings.
The external auditors, KPMG AG, Zurich, conduct theiraudit in compliance with Swiss law and in accordancewith Swiss auditing standards.
3.7 Board independence
In accordance with the Organizational Regulations,
the Board evaluates the independence of its members
annually based on defined independence criteria.
The evaluation of the independence of the candidates
for a Board membership is an important factor whenthe Board of Directors prepares its annual proposal forthe composition of the Board. We apply the Swiss law
the “Swiss Code of Best Practice for Corporate Governance”, INFICON’s independence criteria (see below),
and the disclosure rules of the Directive on Information
relating to Corporate Governance of the Swiss Stock
Exchange (SIX) Regulations. The Board’s ultimate goalis the overall independence of the Board. Also, we
strive for an appropriate diversity among its members.
Due to the several age-related changes in Group andExtended Management team in 2022/23 the Board decided to stay as stable as possible until the new management team is successfully in operation.

The age and length of tenure a Board member has
served are not criteria for his or her independence.
However, the board aims for a healthy distribution
between experienced and new Board members.
Significant shareholder status is also not considereda criterion for independence unless the shareholding
exceeds 30% of the Group’s share capital. Board
members with immediate family relationships would not
qualify as independent.

The replacement of Dr. Richard Fischer who is no longer
available for Board reelection after 20 years of Board
membership and the proposed election of the former
CEO Mr. Lukas Winkler as a new Member of the Boardof Directors are very important occurrences for us andfor INFICON’s future success. The Board is awarethat Lukas Winkler election to the Board of Directors willkeep him for three years not-independent according
to the applied independence criteria. However, his longterm industry experience, his international networkand the continuity is considered very beneficial and a key
aspect in the proposed election

The Board also assesses whether individual Board
members depend financially on the income from thecompensation of the INFICON Board membershipand further assess whether other commitments preventthe person from devoting enough time to the INFICON
Board mandate. Possible conflicts of interest, related
party transactions, and other commitments that could
jeopardize a director’s independence are also considered. While the INFICON Group is not subject to suchstandards, the Board and the CHR Committee acknowledge that some proxy advisors apply different standards for assessing the independence of our Board
members, for example regarding tenure and significant
shareholding status.

21

Corporate Governance

4 Group Management

Independence statement
According to the evaluation carried out by the Board,
4 out of 5 Board of Directors proposed for AGM election
in 2023 are considered independent:
Board Member
Dr. Beat E. Lüthi,Chairman
Dr. Reto Suter,
Chairman Audit
Committee
Beat Siegrist,
Chairman CHR
Committee

Vanessa Frey

Lukas Winkler

4.1 Members of Group Management, other Activities
and Vested Interests, Management Contracts
Our Group Management is responsible for our day-to-day
management. The officers have individual responsibilities established by our Organizational Regulations andby the Board of Directors.

Independence Rating/Comments
Independent
Independent

Lukas Winkler, Citizen of Switzerland, 1962
President and Chief Executive Officer (from January 2004
until December 2022)

Independent / Mr. Beat Siegristand Ms. Vanessa Frey’s family
are both holding significant
share capital of the SIX listed
SCHWEITER Group. Mr. Beat
Siegrist serves as non-executive
Chairman and Ms. Vanessa Frey
as a non-executive Memberof the Board. This fact and thefact that SCHWEITER and
INFICON don’t have any
business interferences are notjeopardizing the independenceof Ms. Vanessa Frey and
Mr. Beat Siegrist based on
INFICON’s independence criteria.
Independent / Ms. Vanessa Frey’s
family is a long-time anchor
shareholder with 19.6% of
INFICON’s share capital.
Mr. Winkler was CEO of
INFICON Holding AG until theend of 2022 and therefore
non-independent from 2023–
2025 according to Swiss Codeof Best Practice.

Educational Background
1982–1986 Swiss Federal Institute of Technology(ETH), Zürich, Dipl. Ing. ETH, BWI
1999–2001 Syracuse University, NY, USA, Executive MBA
Executive Experience
1987–1989 General Motors Europe AG, Switzerland,
Engineer
1989–1991 Maschinenfabrik Rieter AG, Switzerland,
Project Manager
1991–1992 Maschinenfabrik Rieter AG, Switzerland,
Department Head
1993–1994 UNAXIS-Balzers AG, Liechtenstein and
Switzerland, Manager Logistics
1995–1996 UNAXIS-Balzers AG, Liechtenstein and
Switzerland, Manager Production
1996–2003 Balzers and Leybold Instrumentation and
INFICON AG, Liechtenstein,
Vice President and General Manager(member of the Executive Team)
2004–2022 INFICON Holding AG, Bad Ragaz,
Chief Executive Officer
Current Board Mandates
Since 2018 Inovu Group AG(former KLH Holding AG), Member
Since 2020 Avantama AG, Member

22Corporate Governance

Oliver Wyrsch, Citizen of Switzerland, 1977
President and Chief Executive Officer (from January 2023)

Executive Experience
1985–1988 Digital Equipment Corporation (DEC),
Stuttgart, Financial Analyst Software
Development and Sales
1988–1995 Hewlett Packard GmbH, Germany, Senior
Financial Analyst Headquarters Germany
Finance Manager of two subsidiaries inGermany and Switzerland
Accounts Receivables and Credit Manager
Accounting & Reporting Manager Leasing& Remarketing
Commercial Manager Leasing &Remarketing Division
1995–2003 Solectron GmbH, Germany,
Director Finance Germany
2003–2003 Solectron Romania SRL, Timisoara –Romania, Director Finance Eastern Europe(9 months)
2003–2008 Solectron Europe BV, Amsterdam,
Senior Director Finance Europe
Since 2008 INFICON Holding AG, Switzerland,
Chief Financial Officer

Educational Background
1998–2003 Swiss Federal Institute of Technology(ETH), Zürich, Master’s Degree in Computer
Science and Business Administration
Executive Experience
2004–2006 Accenture, Switzerland and Germany,
Consultant
2006–2009 Booz & Company, Switzerland (today:
Strategy & PWC), Senior Engagement
Manager
2009–2011 Clinerion (Start-up in Health Data Management), Switzerland, Vice President
Products & Projects / Head Software
Engineering
2011–2018 Mettler Toledo International Inc., Germany(2011–2014) General Manager Vision
and Track & Trace Solutions for the Pharma
Industry; USA (2014–2018) Head of
Strategic Business Unit Machine VisionInspection
2018–2022 INFICON Inc., USA, President and Headof US Businessfrom 2023 INFICON Holding AG, Bad Ragaz,
Chief Executive Officer

4.2 Other Activities and Vested Interests
Pursuant to Article 21 c) of the company’s Articles ofIncorporation Group Management members maximum
number of board mandates is five with not listed companies whereof one with listed companies. Refer to Note
4.1 for any activities and vested interests.

Matthias Tröndle, Citizen of Germany, 1960
Vice President and Chief Financial Officer(since September 2008)

4.3 Management Contracts
INFICON Holding AG has not entered into any management contracts with third parties outside the Group.

Educational Background
1982–1985 University of Cooperative Education,
Mannheim, Degree in Business
Administration (Diplom-Betriebswirt)

5 Compensation, Shareholdings and Loans
Please refer to Note 3.3 “Shares owned by Group Management and Members of the Board of Directors, including
any related parties”, of the statutory financial statements of
INFICON Holding AG for details of Board members’ andGroup Managements’ shareholdings and to the Compensation Report for disclosures pertaining to compensation,
as well as the content and method of determining the compensation and shareholdings programs. Pursuant to Article 21, no loans or advances were made by the INFICON
Group to members of the Board of Directors or to GroupManagement during the financial year.

23

Corporate Governance

6 Shareholder Participation

The Board of Directors has regular contact to ourstakeholders. The Board of Directors is available at any
time to address the concerns of stakeholders andshareholders. Matters brought forward by shareholders
within the context of the General Meeting are dealt
with in accordance with the Articles of Incorporation.
During the reporting period 2022 no matters were
submitted directly to the Board of Directors.

6.1 Voting-Rights and Representation Restrictions
Each INFICON share carries one vote at our share­
holders’ meetings. Voting rights may be exercised only
after a shareholder has been recorded in our shareregister (Aktienbuch) as a shareholder with voting rights.
INFICON may enter into agreements with banks orfinancial companies which hold shares for the accountof other persons (nominees) regarding the exercise of
the voting rights related to the shares.

7 Changes of Control and Defense Measures

INFICON shares are cleared and settled through SIX
Securities Services AG. The shares will not be physically
represented by certificates but will be managed collectively in book-entry form by SIX Securities Services AG.
Shareholders are therefore not entitled to have their shares
physically represented and delivered in certificate form
(aufgehobener Titeldruck). They can, however, request
a statement confirming their ownership of the shares.

7.1 Duty to Make an Offer
The Company’s Articles of Incorporation do not include“opting-out” or “opting-up” clauses and accordingly
under Article 135 of the Federal Act on Financial Market
Infrastructures and Market Conduct in Securities andDerivatives Trading a shareholder who acquires 33 ⅓%
or more of the Company’s shares is obliged to submit
a public offer for the remaining shares.

6.2 Statutory Quorums
The Articles of Incorporation contain no quorums greaterthan that set out by the applicable legal provisions.

7.2 Clauses on Changes of Control
The Directors, Management & Key Employee Sharebased plans contain a provision whereby all unvested
outstanding options vest and blocked shares release
upon change in control.

6.3 General Meetings of Shareholders
The Articles of Incorporation contain no rules on the
convocation of the General Meeting of Shareholders
that differ from applicable legal provisions.

8 Auditors

6.4 Agenda
Shareholders holding at least 0.5% of the share capital
have the right to request in writing, at least 50 days
prior to the day of the respective shareholders’ meeting,that a specific proposal be discussed and voted uponat such shareholders’ meeting.

8.1 Duration of the Mandate and Term of Office of
the Lead Auditor
Statutory auditors pursuant to Art. 727 and 728, respectively, of the Swiss Code of Obligations is KPMG AG,
Zurich, elected for one year. KPMG AG commenced its
mandate as statutory auditors of INFICON Holding AG
in April 2014. The lead engagement partner, Mr. Roman
Wenk, has been responsible for the audit of thestatutory and consolidated financial statements of
INFICON Holding AG since financial year 2021. The
significant subsidiaries of INFICON Holding AG areaudited by member firms of KPMG AG.

6.5 Entries into the Share Register
Only those shareholders with voting rights whose names
were recorded in the Company’s register of sharehol­ders on the respective closing date may attend the General Meeting of Shareholders and exercise their voting
rights. The Board of Directors endeavors to set the closing date for registration as close as possible to thedate of the General Meeting of Shareholders, i.e. notmore than 3 to 4 weeks before the General Meetingof Shareholders. There are no exceptions to this rule
regarding the closing date for registration.

8.2 Auditing Fees
Audit fees of the Group Auditor for the 2022 audit wereapproximately TUSD 342.

24

8.3 Additional Fees
No additional fees were paid to the Group Auditor in 2022.

Key financial figures are prepared and issued ina press release on a quarterly basis.

8.4 Supervisory and Control Instruments
Pertaining to the Audit
Each year the Audit Committee reviews and discusses
the scope of the proposed audit work and the timely
quarterly reviews, and evaluates the performance andfees of the auditors. Periodically the lead auditor participates in the Audit Committee meetings. In 2022 theaudit firm attended two virtual meetings and two meeting calling in (see Frequency of Meetings of the Boardof Directors and its Committees).

A 2022 half-year report was published online in
July 2022.
Information available for investors can be found at
www.inficon.com
Information on general trading blackout periods
The Board of Directors and Compliance Committee
determines within the Insider Trading Policy the generally
applicable trading blackout periods in the context ofthe quarterly/half-year and annual financial statements.

Criteria applied to the performance and compensation
evaluation of KPMG AG includes: technical and operational competence, independent and objective view,
sufficient resources employed, focus on areas of significant risk to INFICON, ability to provide effective, practical recommendations and effective communicationand coordination with the Audit Committee and financial
management.

For the Board of Directors, the Group Management, theExecutive Team members and their direct reports,
Financial Controller and other persons who have insight
into the preparation of the financial figures of the
INFICON Group (Corporate Insiders) a trading blackout
period applies.
No corporate insider may purchase, sell or enter into any
other transaction with respect to INFICON shares
during any blackout period. A blackout period will apply
from the first day following the last month of eachfiscal quarter (i.e., beginning on January 1, April 1, July 1
and October 1 of each year) up to and including two
full trading days after the public release of INFICON’squarterly or annual financial results.

Following the audit work, the auditors submit a report on
their results, including all communications required, to
the Audit Committee and to the Board of Directors inaccordance with Swiss auditing standards. The Audit
Committee meets with the auditors to discuss and review
their feedback. Based on this information, the Audit
Committee determines changes and improvements asnecessary.

In addition to these regularly scheduled blackout periods,
INFICON may from time to time impose additional
blackout periods during which there exists Material Nonpublic Information about INFICON. These blackout
periods will be determined by the Compliance Officer
and will vary in length.

9 Information policy
INFICON Holding AG pursues an information policy
which is based on truthfulness, timeliness, and conti­
nuity. Matters affecting the share price are published
immediately as ad hoc announcements, in accordance with ad hoc publicity requirements of SIX Swiss
Exchange.

Information available for investors can be found at
www.inficon.com.

Annual financial reports are published online forthe benefit of shareholders and potential investors in
March following the year-end closing.

25Compensation Report

Introduction

1 Remuneration Policy

This Compensation Report describes the principles of
remuneration at INFICON. The report is prepared inaccordance with the Swiss Ordinance against Excessive
Compensation with respect to Listed Stock Corporations of November 20, 2013 (hereinafter referred to as“Ordinance”). The report also follows the recommendations defined in Appendix 1 to the Swiss Code of Best
Practice for Corporate Governance published by econ­omiesuisse and complies with Chapter 5 of the Appendix
to the SIX Swiss Exchange Guidelines concerning
information on corporate governance. This compensation report is in line with the Articles of Incorporation.
The Articles of Incorporation are available online athttps://ir.inficon.com/Corporate%20Governance/

INFICON is a globally active Group. Its remuneration
policy follows general market practices. It also considers
the individual performance. This ensures the Group’s
ability to hire and retain the right talents. Individual remuneration corresponds to the scope of responsibilities,
reflects the specific requirements of a position, the needed personal skills, the individual performance, and
the Group’s economic success. INFICON’s remuneration
policy is generally performance oriented and includes
a variable component for all staff.
The Compensation and Human Resources Committee(hereinafter referred to as “CHR Committee”) reviews
the principles of the remuneration policy annually. Basedon a proposal of CHR Committee, the Board of Directors decides on the level of compensation for the Members of the Board and Group Management annually,
once the Board has received the audited financial results.
The CHR Committee consists of three Members of
the Board of Directors – currently Beat Siegrist (Chairman), Dr. Richard Fischer and Dr. Reto Suter.

Unless indicated otherwise, all information refers to thefinancial year closed on December 31, 2022. In thisReport, all share-based payments are calculated anddisclosed with reference to the year of allotment (grantdate). All other compensation is disclosed according to
the accrual principle, i.e. the compensation is reported
in the period (i.e. financial year) in which it is recordedin the financial statements.

2 Board of Directors Compensation

Compensation Highlights of the Boardof Directors and Group Management
in T CHF

Board of Directors
Number of members
Group Management
Number of members
Actual compensation

2022
764
800
5

2021
733
800
5

2,278
3,500
2

1,842
3,500
2

The compensation to the members of the Board of
Directors consists of a fixed yearly cash element thatmakes up 2/3 of the total compensation and a defined
share allotment that accounts for 1/3 of the total compensation. The compensation includes contributions to
the Swiss social security and unemployment insurance.
The shares are subject to a 3-year mandatory holding
period. The number of shares allotted is calculated basedon the average share price on the fifth trading day
following the Ordinary Annual General Meeting. The cash
component of the remuneration is paid out to the Members of the Board of Directors on the basis of the termof office. The allocation of shares takes place five days
after the Annual General Meeting for the following period
of office.

Approved compensation AGM

26

Compensation Report

Board Compensation overview
in TCHF

Board Chair
Board Vice Chair
Chair AC Committee
Chair CHR Committee
Board Member

AnnualBoard fees

Cash
2/3

Shares1/3 (*)

189.0
141.0
120.0
120.0
94.5

126.0
94.0
80.0
80.0
63.0

63.0
47.0
40.0
40.0
31.5

Elements and structure of compensation
The compensation for the Members of Group Management consists of the following elements:
Structure of Compensation
PurposeElement(*) Shares at market value. Final amount of shares is subject to roundings.	Base Salary

Neither attendance fees nor flat rate expenses arepaid. Direct incurred expenses such as e.g. for travel
and accommodation are reimbursed.

Benefits

The CHR Committee annually proposes the total compensation levels for the Chairman and the other Membersof the Board. The CHR Committee bases its judgement
on Committee Member’s experience. If needed, theCHR Committee may use external compensation surveys
and professional insights. The Board of Directors thendeliberates on the level of the total compensation for theMembers of the Board. The total amount of the compensation is finally proposed to the Ordinary Annual General Meeting for the term of office until the closingof the following Ordinary Annual General Meeting of
Shareholders.

Short-term goal
achievement

PeriodFixedcompensation
Cash
Car allowance
Social security
insurance, pension
plan
Variablecompensation

continous,
monthly

1 Cash bonus

1 year

2 Compensation inshares3 CEO long-termLong-term incentive
incentive
Shareholderalignment

3 years
4-7 years

The compensation system for Members ofGroup Management is structured as follows:
Fixedcompensation

The total compensation paid to the Board of Directors
conforms to conferred responsibilities and market
conditions.

Basesalary3 Compensation to Membersof Group Management

LTI
share
plan

Cash Sharebonus plan

Range

Target(1) Target(1)minmax(2)

Range

100%

45%

45%

0–200%

0–2
MCHF

Other
100%
members40%

40%

0–200%—CEO

Based on a proposal of the CHR Committee, the Boardof Directors asks the Ordinary Annual General Meeting
annually for the approval of the compensation forGroup Management.

Variablecompensation(1) 100% target achievement, all percentages are based on base salary(2) Total variable compensation (cash and shares) capped at 200% of annual base salary

The CHR Committee bases its judgement on Committee
Member’s experience and, if deemed necessary, byexternal compensation benchmarks.

27

Compensation Report

Variable compensation
The variable compensation reflects the individual
performance and the Group’s financial results.

adapted and aligned to the plan for the Board of Directors.
50% shares with a three-year holding period replaced
the former split into 25% shares and 25% restricted shares(allocation over four years).

The following table shows the key performanceindicators and their respective weighting.

The composition and amount of the variable compensation are in accordance with the sector and labormarket. They are periodically reviewed.

Key performance indicators for theGroup Management (as a percent of base salary)

Operating Income
Asset Management
Cost Control
Individual
Performance
Total

Weighting
Chief Executive Officer

WeightingGroup Management

72%
4%
4%

64%
4%
4%

10%

8%

90%

80%

The Board of Directors – following preparation andrecommendation by the CHR Committee – determines
the metrics for the specific target bonus as well as
the range between maximum and minimum variable compensation. The achievement levels of the financial
performance goals are calculated based on the annual
result after the closing of the financial year. The
achievement levels of the individual performance aredetermined by the CHR Committee and the proposal
is submitted to the Board of Directors.

The financial performance-based bonus depends on
the annual results of operating income, asset management, and cost control, weighted for 72% for GroupManagement and 80% for the CEO. The financial performance-based bonus criteria must meet a certain
minimum threshold for eligibility.

The following table shows the 2022 performance indicators and achievements for the CEO.
Key performance indicators and achievement
for the CEO (as a percent of base salary)

The individual performance goals, weighted 10% for the
CEO respectively 8% for the Group Management, arebased on individual performance objectives. These personal goals also include an objective related to ourESG (Environmental, Social and Governance) initiatives.

Operating Income
Asset Management
Cost Control
Individual
Performance
Total

For Group Management Members, the total target
variable compensation is at 80% of the base salary and
90% for the CEO. The total variable annual compen­
sation is capped at 200% of the annual base cash
compensation.

Target weighting

Achieved weighting

72.0%
4.0%
4.0%

62.0%
2.4%
5.6%

10.0%

9.4%

90.0%

79.4%

This achievement results in a total variable compensation of TCHF 361 for the CEO, 50% in cash and 50% inshares with a three year blocking period.

50% of the variable compensation is paid in cash
(table “Structure of Compensation – 1 Cash bonus”).
It serves as an incentive to achieve short-term goals.

In 2019, a long-term incentive plan was introduced for
the CEO (table “Structure of Compensation – 3 CEOlong-term incentive”). The Board of Directors and CHR
Committee have established performance targets,
levels and achievement criteria, as well as other conditions and deadlines. The amount of the long-term
remuneration is variable and can amount to a maximumof MCHF 2 gross (excluding social security contributions). The amount of the remuneration depends on thetiming of the occurrence of the specified operating

Another 50% is provided by shares (table “Structure ofCompensation – 2 Compensation in shares”). The
variable share program is a long-term incentive and aims
at establishing a long-term relationship with theenterprise in line with the shareholders’ interests. Theseshares are subject to a three-year blocking period.
In 2021, the share plan for the Group Management was28Compensation Report

income goal. The remuneration is granted only once,is share-based and could have been paid out in 2022 at
the earliest. The agreement is valid until 2025 at thelatest. This long-term remuneration was proposed to andapproved by the Annual General Meeting held in 2019.

1. T he determination of compensation principles forGroup Management;

At the end of 2022 the achievements of the long-term
incentive plan had been reviewed. Based on the established performance targets and achievement criteria
the long-term remuneration did result in an amount of
MCHF 1,5.

3. T
 he fixed and variable compensation ofGroup Management;

2. T he total amounts of compensation for the Board of
Directors and Group Management;

4. A
 mendments and changes to the Articles of Incorporation in respect to the system of compensation.

The average share price on the fifth trading day following
the Ordinary Annual General Meeting will serve as
the calculation base to establish the number of shares.
For the CFO, the base salary increased by 8% in 2022.
The variable compensation was adjusted according to
the financial performance and the individ­ual performance goals.

The compensations of the Board of Directors and thefixed and variable compensations of Group Management are subject to approval by the Ordinary General
Meeting of the Shareholders.

5 Severance Compensations
No severance payments have been contractually definedfor members of the Board of Directors or the GroupManagement. For the financial year 2022 no severancecompensations were paid.

4 Authority and Determinationof Compensation
INFICON’s CHR Committee acts as the relevant bodyin accordance with the Ordinance Against Excessive
Compensation with respect to Listed Stock Corporations
and its Articles of Incorporation.

6 Employment Contracts
The Company may enter into fixed-term or open-ended
employment contracts with the Members of the GroupManagement. Fixed-term employment contracts shallhave a maximum duration of one year; a renewal isallowed.

The CHR Committee prepares the recommendations
submitted to the Board of Directors for compensation
for the Board of Directors and Group Management.
The CHR Committee consists of at least three membersof the Board of Directors. They are elected by the Ordinary Annual General Meeting of the Shareholders for aterm of office that runs until the end of the next Ordinary Annual General Meeting of the Shareholders. Reelection is allowed.

The employment contracts for Members of GroupManagement stipulate no provision for unusually long
notice periods or contract terms. Open-ended employment contracts for Members of Group Management
have a notice period of a maximum of twelve months
and make no provisions for unusually long notice periods or contracts terms.

The CHR Committee constitutes itself. It appoints its
chairperson from among its Members. The Boardof Directors has issued rules on the organization anddecision-making powers of the CHR Committee.

Non-competition agreements are allowed for the period
following termination of the employment contract. In
compensation for such agreements, a compensation notexceeding the affected Member’s last annual salary
may be paid for up to one year.

The CHR Committee has the following duties andcompetencies in particular to prepare and submit to
the Board of Directors:
29Compensation Report

7 Compensations to the Board of
Directors and Group Managementb) Compensations 2021
Board of Directors

The compensation to Members of the Board of Directors
and the aggregate compensation to Group Management shown in the tables below are gross values andbased on the accrual principle.

Base Compensation*OtherTotal
compensationin shares compensation compensationin cashCHF 1,000

Dr. Beat E. Lüthi
Chairman

Dr. Richard Fischer

Vice Chairmana) Compensations 2022

Vanessa Frey

MemberBeat Siegrist

Chairman of CHR Committee

Board of Directors

Dr. Reto Suter (as of March 31, 2021)

Base Compensation*OtherTotal
compensationin shares compensation compensationin cashChairman

Dr. Richard Fischer

Vice Chairman

Vanessa Frey

MemberBeat Siegrist

Chairman of CHR Committee

Dr. Reto Suter

Chairman of Audit Committee

Total

126

64

62

252

94

47

8

149

63

32

8

103

80

41

9

130

32

222

47

8

149

63

32

8

103

80

41

9

130

—

41

3

44

80

—

5

85

Total

443

225

65

733

Chairman of Audit Committee

Dr. Beat E. Lüthi

64

94

Dr. Thomas Staehelin (until
March 30, 2021)

Chairman of Audit Committee

CHF 1,000

126

Approval by the Annual General Meeting 2021

800

*	Other remuneration comprise payments mainly related to social insurance
contributions.

80

41

9

130

443

225

96

764

Fixed compensation

800

Base *Other
salary compensation

Total

Cash
bonus

President and Chief
Executive Officer

455

20

475

290

231

116

637

1,112

Total

765

40

805

465

369

203

1,037

1,842

Approval by the Annual General Meeting 2022

Group Management*	Other remuneration comprise payments mainly related to social insurance
contributions.

Group Management
Variable compensation

Base *Other
salary compensation

Total

President and Chief
Executive Officer

455

20

475

150

393

460

1,003

1,478

Total

790

42

832

260

630

556

1,446

2,278

Cash
bonus

Com- *Other
pensa- compention insationsharesTotal

Com- *Other
pensa- compention insationshares

Total

Total
compensation

CHF 1,000

Lukas Winkler

Fixed compensation

Variable compensation

Approval by the Annual General Meeting 2021

Total
compensation

3,500*	Other compensations comprise payments mainly related to social insurance
contributions and car allowances.

CHF 1,000

Lukas Winkler

Approval by the Annual General Meeting 2022

The compensation to the Chairman and the other
Board Members did not change compared with theprevious year. The shares have been granted forthe current term of office until the next Ordinary Annual
General Meeting of the Shareholders. The allotment
occurs five trading days after the Ordinary Annual General Meeting of the Shareholders (grant date). The
total amount of compensation of TCHF 764 comparesto an amount of TCHF 800 approved by the Ordinary
Annual General Meeting of Shareholders. The difference
mainly reflects higher amounts reserved for potential
employer contributions for social security and unemployment insurance as well as pension contributions.

3,500*	Other compensations comprise payments mainly related to social insurance
contributions and car allowances.
The purchase into the pension fund for early retirement of the CEO amounted
TCHF 306 in 2022.

30

Compensation Report

9 Additional Fees and Remunerations

The base compensation to Group Management increasedby 3.3% compared with the previous year. The difference in total compensation between the year 2022 and2021 mainly reflects changes in variable performancerelated compensation elements (cash bonus and compensation in shares) as well as the purchase into thepension fund for early retirement of the CEO. The average share price on the fifth trading day after the Ordinary Annual General Meeting served as calculation baseto establish the number of shares, which are allottedon July 1st. The variable compensation was adjusted
according to the achievement of the financial andindividual performance targets.

No additional fees or remunerations were paid to members of the Governing Bodies and their related parties.

10 Loans to Members of Governing Bodies
No loans were granted to current or former members ofgoverning bodies and their related parties during 2022.
No such loans were outstanding as of December 31, 2022.

The total amount of compensation for Group Management of TCHF 2,278 compares to the maximum ceilingamount of TCHF 3,500 approved by the Ordinary Annual
General Meeting of the Shareholders.
The differences reflect mainly two facts: The amounts
reserved for the potential addition of further Members toGroup Management as well as the amounts reserved
for a potential disadvantage compensation have both not
been required at all.
In 2022 the average employee pay, including variable
compensation and social security contributions reached
TCHF 111.6 and in 2021 TCHF 112.8.
This compared to the total compensation of the CEO
in the amount of TCHF 1,478 in 2022 represents a factorof 13.3x (after a factor of 9.9x in 2021).

8 Compensations for Former
Members of Governing Bodies
There was no compensation to former members of theBoard of Directors.

31

Report of the Statutory Auditor
To the General Meeting of INFICON Holding AG, Bad Ragaz

Report on the Audit of the remuneration report
OpinionWe have audited the remuneration report dated 28 February 2023 of INFICON Holding AG for the year ended 31
December 2022. The audit was limited to the information according to articles 14-16 of the Ordinance against Excessive compensation in Stock Exchange Listed Companies contained in the tables a) and b) in section 7 on page
30 as well as sections 8 to 10 on page 31 of the compensation report.
In our opinion, the information on remuneration, loans and advances in the remuneration report complies with
Swiss law and Art. 14-16 VegüV.
Basis for Opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the “Auditor’s Responsibilities for the Audit of
the remuneration report” section of our report. We are independent of the Company in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Information
The Board of Directors is responsible for the other information. The other information comprises the information
included in the annual report, but does not include the tables marked “audited” in the remuneration report, the consolidated financial statements, the financial statements and our auditor’s reports thereon.
Our opinion on the remuneration report does not cover the other information and we do not express any form ofassurance conclusion thereon.
In connection with our audit of the remuneration report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the audited financial information in
the remuneration report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Board of Directors' Responsibilities for the remuneration report
The Board of Directors is responsible for the preparation of a remuneration report in accordance with the provisions of Swiss law and the Company's articles of incorporation, and for such internal control as the Board of Directors determines is necessary to enable the preparation of a remuneration report that is free from material misstatement, whether due to fraud or error. The Board of Directors is also responsible for designing the remuneration system and defining individual remuneration packages.

1

32

Auditor’s Responsibilities for the Audit of the remuneration report
Our objectives are to obtain reasonable assurance about whether the information on remuneration, loans and advances pursuant to Art. 14-16 VegüV is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually orin the aggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of this remuneration report.
As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:•

Identify and assess the risks of material misstatement in the remuneration report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theCompany’s internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made.

We communicate with the Board of Directors or its relevant committee regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
KPMG AG

Roman Wenk
Licensed Audit Expert
Auditor in Charge

Benjamin Marte
Licensed Audit Expert

Zurich, 28 February 2023

KPMG AG, Badenerstrasse 172, CH-8036 Zurich© 2023 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member of the KPMG global organization of independent member firms affiliatedwith KPMG International Limited, a private English company limited by guarantee. All rights reserved.
2

33

INFICON Sustainability Report 2022

Sustainability – a core aspectof INFICON’s strategy

INFICON aims at sparingly and sustainably utilizing
resources and compensating appropriately for their use,allowing prosperity today and for future generations.
This compensation includes reasonable dividends forshareholders, fair payments for our workers and business partners, as well as the disbursement of taxes inthe various jurisdictions we operate in. The multidimensional business and stakeholder approach allows
INFICON to drive innovation and its long-term business goals ahead while observing high ethical businessstandards in general, striving for the least possible
impact on the environment, and providing for humanand ecological health.

This chapter of the Annual Report outlines INFICON’s
perception and understanding of sustainability andthe respective actions taken. It explains the customerfocused approach of INFICON’s value propositionand describes the Company’s relationships with its
stakeholder groups including customers, employees,
investors, the hosting communities, its business partners, and suppliers. This chapter also describes
general environmental, social as well as governance andleadership related aspects of INFICON’s business.
As a global leader in instruments for gas analysis,
measurement, and control, INFICON’s business model
is deeply rooted in its commitment to do businesssustainably in economic, environmental and social terms
as well as regarding governance and leadership.
INFICON’s approach to sustainability is comprehensive
and holistic. In our business decisions and conduct,
we consider economic, environmental and social aspects
at both strategic and operational levels. This approachlies at the heart of the Group’s long-term strategic orientation, its value creation, market leadership, and thus
long-term success and profitable growth. Our emphasis
on sustainability provides guidelines for INFICON’s
customer-oriented innovation management, its global
purchasing and production processes, its risk management as well as the conduct of its customer relations.
It also is an important factor in terms of employer
branding and helps INFICON attract, recruit, and retain
the best-suited talents.

We are aware that employees and customers want toknow the purpose of a company. When they understand a corporation’s approach to ESG, and know andshare its goals, employees see their work as a meaningful contribution to the company, the society, and theplanet. This increases motivation, loyalty, and performance. Suppliers and customers value their relationshipwith a company also more when they can relate to the
purpose of a company.
INFICON thus assumes responsibility for its actions witha view to the economy, nature, and the people. In
2022, the INFICON Management team discussed theCompany’s DNA and INFICON’s identity statement
at meetings and workshops at various management andemployee levels to promote a shared understanding.
We are implementing our defined aims and ambitions,as well as methods and measures of how we want tocontribute to the common goals of humankind.

Our commercial accomplishments and our solid financial
backbone allow INFICON not only to successfully
master crises such as the COVID-19 pandemic, disturbances in the international supply chain, and as a newchallenge, potential energy shortages. Our commercial
and financial performance is also the grounds for our
long-term and customer-centered approach to innovation, our state-of-the art manufacturing capabilities,
our strong relations with our workforce, communities,
customers, investors and other stakeholders.

INFICON’s identity statement focusses on authentic,
simple, individual, and future-oriented enterprise goals.
•	Create: We enable visionary technologies
for tomorrow• Live: We live performance, joy and individual growth• Care: We make our world safer and better

34

INFICON Sustainability Report 2022

Identification of material topics

We have reviewed the information gathered for this report and then modified, updated, and further expanded thescope of information in this report in various sections. In doing so, the GRI Sustainability Reporting Standards andthe materiality analysis carried out in 2020 served as guidance for our yearly revision and the expansion of thecontent of this report. With a view to the materiality of topics, we consider those as material that are important to
INFICON from an internal Company perspective, and/or from an external stakeholder perspective, and/or have asignificant economic, environmental, or social impact. In our yearly review of the materiality assessment, INFICON
identified no need for any changes. The materiality matrix below thus shows and ranks the identified material
topics to depict INFICON’s business model and stakeholder view according to the three dimensions “businessrelevance”, “relevance for stakeholders”, and “impact relevance”.
Materiality matrix

Technology leadershiphighProfitable growth
Energy and carbon
emissions

mediumEnvironmental
complianceMarket leadership
Environmental
management system

Customer relations

Product impact

Good governance

Product quality &complianceTraining andeducation
Occupational
health & safety

Efficient materials
sourcing and use

Attractive
employer
Diversity

Responsible supplierstandards

Community and giving

low

Relevance for Stakeholders

Very highMateriality matrix 2021

low

mediumhighVery highImpact relevanceCategories:
GovernanceBusiness relevance:

35

SocialEnvironment

Economy/Products

INFICON Sustainability Report 2022

Examples ofengagement formats

Stakeholder Management

Key stakeholder concerns
Developing good relationships with all stakeholders is
key for the long-term business success. INFICON
regularly engages with its stakeholders in a broad andsystematic variety of ways to understand their needs
and gain insights into changing market requirements,
trends, and developments. Above all, day-to-day communications are the most important form of interaction.
Daily contact with customers, suppliers, and business
partners, as well as personal discussions among employees clearly indicate what topics are relevant to theindividual stakeholder groups.

Daily interaction
Regular personal contact
Video conferences
Workshops/visits
Webinars, technicaltrainings
Conferences
Social media,
newsletters, emails
Trade shows(virtual and physical)
Industry associations

Each organization identifies and prioritizes its stakeholders and their interests, discussion topics, and values
by the means of formal management reviews, SWOT
analyses or dedicated stakeholder analyses as part of our
ISO certified management system. Overall, INFICON
defines stakeholders as entities that engage in economic transactions with the Company, or are affected by
its actions. The Company’s key stakeholders are customers, employees, suppliers, the academic world,shareholders, and local communities.

Key needs and concerns
Reliable customer service
Quality/good value products
Meeting the technical specs
and requirements
Fast response times
Reliable on-time delivery
Health and safety impacts
of products
Providing general information
Show and explain innovationand performance
Assess overall industry
and technology trends

Understanding our customers’ most pressing needs froman early stage is a prerequisite for delivering reliable
customer service in challenging times. INFICON experiences great customer loyalty and rising demand forits products, technology, and services. As the pandemic
had limited international travel especially in 2020 and
2021, new electronic formats of customer engagement
have become more widely accepted. As travellinghas become easier again in 2022 in many world regions,
our key account managers and technical staff was able
to meet more often again with customers. Yet INFICON
continues to advocate the electronic formats in manyoccurrences as ecologic alternative for frequent travels.
To certain regions or countries, cross-border travel
remained still difficult if not impossible in 2022. Businesstrips to China were still not possible. So, INFICON
experts engaged with their counterparts in these regions
by frequent video conferences, virtual reality assisted
tools, and social media. Apart from key accounts,
INFICON addressed the broader customer base atindustry-specific tradeshows and conferences, on industry association panels, through webinars and technicaltraining videos as well as newsletter, e-mails and an
expanded presence on social media. INFICON has
expanded its presence on various social media platforms
to facilitate getting in touch with the company.

Key stakeholder concerns

INFICON’s customers faced a demanding global business environment in 2022. While the COVID-19 pandemic lost some of its force in Europe and America, it
continued to affect important sourcing markets in Asia
and China in particular. In addition to the ongoing international trade, tax and industry policy disputes aggravated sourcing bottlenecks and led to certain scarcity
issues for a series of important components and mate­rials. INFICON interacted in many different formats with
its global customer base to understand their highexpectations. The table below summarizes the interaction formats and topics:

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INFICON Sustainability Report 2022

INFICON’s employees still face the consequences of
the COVID-19 pandemic in certain ways at the various
production and service sites. Most of the restrictions
and precautionary measures were gradually alleviated,
yet some remained in place and have become partof our normal daily routine, as e.g. using disinfectant
lotions for proper hand hygiene and where possible
working partially from home.

various component brokers to safeguard its supply ofcertain components and materials from different countries. INFICON’s purchasing departments and specialists closely interacted on a day-to-day basis with key
suppliers, focusing on securing the needed quantities
of components at reasonable prices. At the same time,
INFICON continued to emphasize on site or virtual
supplier visits and audits, in order not to compromise
the quality of the goods delivered to INFICON given
the tight conditions on the sourcing market.

INFICON remained focused on being a reliable andcaring employer throughout the pandemic, keeping
employees safe, highlighting job security at INFICON
and retaining existing colleagues as best as possible.
INFICON intensified internal communication in the pandemic years via different channels ranging from on-site
staff gatherings to virtual town-hall meetings, from sharing information on the intranet to more frequent news­
letters, from job related training sessions to the INFICON
identity workshops and meetings. As INFICON is
expanding its global operations to accommodate future
growth, hiring and especially on-boarding new staff
and talents locally requires good communication skills
and a high level of attention.
Examples ofengagement formats
Daily interaction
Regular staff meetings
Regular town-hall meetings
Intranet, newsletters
Trainings
Employee representatives

Examples ofengagement formats
Regular, daily interaction
Supplier visits
Supplier audits
Quality andpricing meetings
Forecasting systems

Key needs and concerns
PricesRequired volumes
Specifications
Reliable on-time delivery
Volumes, capacity, planning

INFICON’s local communities see and know INFICON
as a corporate citizen and frequently contact thecorporation regarding topics such as sponsorship andsupport of local events or initiatives. Local communities and the public at large ask for more transparency ofenvironmental, social and governance data. Regulatory
developments also indicate that requirements regarding
non-financial disclosures will increase.

Key needs and concerns
Health and safety
Job security
Flexible communications
and information sharing
Business situation
Workload
Compensation, training
and education

Examples ofengagement formats
Engagement projects
Funding requests
Open-door events

INFICON’s suppliers often struggle with severe bottlenecks. Shortages occurred in the wake of the COVID-19
pandemic, different national strategies to cope with it,
and because of the international trade, tax, and industrial
policy disputes, and last but not least as a consequenceof the war in the Ukraine. The globally rapidly risingdemand for semiconductor products, electronics andother key components created shortages on the supply
markets. With China being a key sourcing market for suchcomponents, the country’s “zero COVID” strategy
caused recurring industry shutdowns and supply scarcity.
Continuous sourcing of certain components becamevery challenging. Well-established, mutually beneficial,reliable and resilient supplier relationships are still key,
yet proved not to be sufficient. INFICON had to engage

Key needs and concerns
Sponsorship
Support with personnel
Other contributions
and support

The international financial community community
is obviously an important stakeholder group for a publicly
listed Company. INFICON engages in a continuous
dialogue with its investors and the financial community
at large by means of its Annual Report, Interim Reports,
its quarterly earnings releases, presentations and WEBconferences, its Annual General Meeting of Shareholders, Technology Days, as well as national and international roadshows and the attendance at financial
conferences. The investors and analysts are keen tounderstand how INFICON is generating value today
and in the future. Especially in Europe and America,
meetings with analysts, brokers, and investors haveincreased in the year under review as travelling became
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INFICON is member of following associations:less restricted. These stakeholders want to learn about
the product pipeline that continues to define the market
benchmarks and thus secures the Company’s long-term
successful positioning. They also want to understand
INFICON’s core technological competence in vacuum
technology, which is publicly available on the Internet,
highlighted in INFICON’s reports and presentations, andaddressed at the Technology Days that take placefrom time to time. INFICON management interacts on
average with about 200 investors and analysts per
year via various personal channels.
Examples ofengagement formats
Financial reports andpress releases
Annual report andSustainability report
Annual general meeting
Analyst conferences/summits and calls
Technology days
(every four to five years)
Roadshows

INFICON AG/Liechtenstein:•	Swiss-American chamber of commerce•	Vacuum Society•	American Vacuum Society (AVS)•	Swiss Association for Standardization (SNV)•	Swissvacuum•	Swissmem• SAQ (Swiss Association for Quality)
INFICON GmbH/Germany:•	SPECTARIS e.V. – Deutscher Industrieverband•	kölnmetall – Arbeitgeberverband•	IHK – Industrie- und Handelskammer zu Köln
•	BG ETEM•	Deutsche Vakuum-Gesellschaft e.V.
•	DIN – Deutsches Institut für Normung e.V.
•	DLG – Deutsche Landwirtschafts-Gesellschaft e.V.
•	DIL – Deutsches Institut für Lebensmitteltechnik e.V.
•	Deutscher Kaffeeverband e.V.
•	ZLV – Zentrum für Lebensmittel- und
Verpackungstechnologie e.V.

Key needs and concerns
GrowthProfitability
Long-term success
Product pipeline,
development projects
End-market developments
Sustainability

International industry associations provide importantinteraction and discussion platforms for INFICON ona variety of topics including industry-specific compliance and conformity issues, products and processcertifications and tax contributions.

INFICON Inc./USA:•	Centerstate CEO•	MACNY•	National Association of Manufacturers (NAM)•	National Defense Industrial Association•	Packaging Machinery Manufacturers Institute•	Southern Gas Association•	American Public Gas Association•	Air Conditioning, Heating &Refrigeration Institute (AHRI)•	Society of Automotive Engineers (SAE) –Interior Climate Control Committee (ICCC)•	Heating, Air Conditioning and Refrigeration
International Distributors (HARDI)•	Mobile Air Conditioning Society (MACS)•	Manufacturing Leadership Council

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Good governance

Universities and Research Institutes are importantpartners. INFICON is leading currently 15 research
projects with leading universities and research institutes
located in the US and in Europe. The cooperation withsuch bodies is an important source of new expertisein new fields of research and thus in new fields of application ranging from research goals to implemented
industrial manufacturing, and medical applications.
INFICON also seeks to find new and refine core technologies to be integrated into its vacuum technology
components through the cooperation with those research
institutes. The complexity of vacuum technology andits rapid technical and scientific development requires
a permanent and close look at developments in thecore and in neighboring and sometimes even rather
distant disciplines such as optics and acoustics.
We also co-develop new materials including ceramics,
glasses, metal alloys, and innovative novel coatings
that promise new properties beneficial for the performance and longevity of our customers’ or our products, that open or require new vacuum technology procedures and applications. INFICON also cooperates
with academic bodies to bring data analysis projects
forward as rapidly analyzed data are a key to nextgeneration innovations.

Since its formation, INFICON has implemented highstandards of Corporate Governance and businessethics. Separate chapters on Corporate Governanceand on INFICON’s compensation practices disclose
further information in a systematic manner. Here, it isimportant to note that the Board of Directors andGroup Management comprise different persons, that
there is no overlap of offices and no conflicts of interest. Corporate information continuously flows between
Management and the Board supported by a solid
information system. Employees, shareholders and the
public at large regularly receive information about
INFICON’s business and financial performance.
Good governance at INFICON also implies high ethicaland moral standards as they are set out in the INFICON
Business Ethics Policy. We expect compliance with theseguiding principles in the daily work of any INFICON
employee on all levels and in all functions. As a Company
and corporate citizen, INFICON itself adheres to fairand good business practices in a broad sense. Board andManagement are involved and focused, ESG criteria
are part of the incentive system of Group Management.
In 2022, e.g., the objectives for Group Management
included apart from qualitative targets the quantitative
goal to reduce the Group’s CO2 emission by at least
3%. As shown later in this chapter, the actual reduction
achieved was 59%. We are also aware that a Company
benefits from infrastructure and public services in thevarious jurisdictions where we are active. Therefore,
good governance also includes fair tax practices.

Important to note is also the fact that the close cooperation with universities and research institutes promotes
INFICON’s attractiveness as employer. Young experts
get to know our products, our research and development capabilities and our technological leadership position. The close cooperation with these academic andapplied scientific bodies helps INFICON to attract young
talents.

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Business ethics policy

INFICON assesses every year if there were any reported breaches of compliancy with the policy, any confirmed incidents of corruption, or any legal actions foranti-competitive behavior or any anti-trust issues.

INFICON’s Business Ethics Policy defines the fundamental principles of ethical business behavior and the
responsibilities of every employee and Company
representative. A proper conduct includes compliancy
with the law, ordinances and regulations, as well as
accounting principles and procedures. Compliancy is
instrumental as we strive to avoid any violation of thelaw or other regulations.

No incidents of corruption were reported for the year
under review.

Tax strategy

In addition to regular internal reviews, 2022 saw again
external audits at various sites focusing on quality,
financial performance, and/or IT systems and security.
INFICON welcomed several customers on-site who
conducted their own supplier reviews. All these meetings highlight the importance of our sound Business
Ethics Policy and compliancy with the law.

As a globally active corporation with sites around theworld, INFICON benefits from the public infrastructure
and other public services at the locations we or ourcustomers operate. Tax money generally pays for theusage of public infrastructure and other public services.
As a corporate citizen, INFICON complies with the applicable tax laws and pays taxes wherever we undertake
commercial activity. INFICON does not engage in any
aggressive tax planning or artificial structuring to minimize tax payments. INFICON’s Executive Office is incharge of tax governance, control and risk management, based on regular discussions with and recommendations from the Board of Directors and external
consultants.

INFICON’S policy forbids child or forced labor andstipulates honesty and integrity in personal behavior.
It gives guidance for political contributions, gifts, fees
and commissions. Our policy also covers topics suchas conflict of interest and other potential misconduct.
It provides employees with guidelines about how tobehave in the international business environment,
how to handle corporate and confidential information,
defines employment practices, as well as health andsafety procedures. We seek to support diversity on all
hierarchy levels. INFICON’s Business Ethics Policy
is publicly available online at https://www.inficon.com/
about-us/company/.

Economic foundation

Value creation for our customers
In our business decisions and conduct, we consider
economic, environmental and social aspects at both
strategic and operational levels. This approach lies at
the heart of the Group’s long-term strategic orientation,
its value creation, market leadership, and thus long-term
success and profitable growth.

Violations of the Code of Conduct must be reported
promptly by the employee to his/her direct supervisor
or, if necessary, to the audit committee of INFICON
corporate management (Dr. Reto Suter, In der Deisten
11, 8125 Zollikerberg, Switzerland, email: INFICON@
whistleblowercontact.com). All information received
from the employee will be treated confidentially to thegreatest possible extent.

INFICON’s business model has proven to be strong forover 20 years. Our instruments, the technology andcustomer targeted offering allows us to generate solid
cash flows to solidify and grow the business. INFICON
is active and present in all world areas. We operate invery competitive target markets, where we hold leading positions, generally as one of the top three global
solution providers. See page 11 for an overview map
showing INFICON’s global presence.

All new employees who start at INFICON complete a
special training session on business ethics at any of
their respective Company site around the globe. Bi-annually, all employees participate in a refresher course
and renew their commitment to our high standards bysignature.
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Large customers with multinational presence as well as
local industrial clients and academic institutes canrely on INFICON to ensure a high level of service deployment around the globe. INFICON covers the global
target markets with three brands. We also manufactureand supply private label products for large industrial
players. Please refer to pages 6–7 for an overview on
INFICON’s target markets. The goal is clear: INFICON
wants to offer competent services, consultancy and training covering the full customer-buying circle. INFICON’s
global sales and service organization counts around
350 people, and includes functions in sales and marketing, application engineering, customer service, ordermanagement, logistics, as well as specific finance andadministrative staff. Customers around the globe benefit
locally and efficiently from a comprehensive range of
installation, commissioning, calibrating, maintenance,
repair, and device rental services.

Long-term test system for vacuum gauges, Balzers (LI)

To meet these expectations, INFICON has embarked
on a comprehensive investment strategy in 2021.
The 3-year program was timely executed and is alreadylargely concluded. With investments of over USD 50 million, this initiative has added some 50% additional capacity group-wide. The projects included shop floor andequipment capacity expansions as well as investments
in optimized and more flexible processes and finetuned practices. The following facts illustrate the scopeof these significant investments:

Vacuum gauge calibration systems, Balzers (LI)

Major customer groups per target market
INFICON serves different clients in these target markets:
In the largest target market, Semiconductor & Vacuum
Coating, we address two major customer groups: The
first consists of semiconductor or thin-film coating endusers and their top-tier suppliers. They seek to optimize their manufacturing processes and output yields.
INFICON gas and vacuum instruments as well as process control software help semiconductor manufacturers (“fabs”) to optimize their production processes andincrease the yield and quality of their wafer production.
Our products also help fabs to monitor the storage,transport and usage of raw and process materials andare thus vital for environmental protection efforts ofour customers. The second large customer group are
Original Equipment Manufacturers (OEMs). We supply
them with vacuum and thin film technology components,
which they integrate into their semiconductor or vacuum coating production equipment and tools.

In Balzers (LI), a whole floor of office space was converted into additional 1200 m2 production space. In the
Aalands (FI), the existing facility area was increasedby over 50% to accommodate growth. INFICON has
added 752m” production area and 260m2 office space.
Additional expansions are scheduled for 2023. In
Cologne (DE) INFICON invested into building renovations and expansions allowing for more flexible logistics and adding additional manufacturing space. New
machinery and equipment was another investment
focus at Cologne. In Syracuse (USA) we renovated andchanged the layout and the usage of some of the buildings, too. Formerly located at four different locations we
consolidated the service tool activities in two designatedareas. These changes resulted in a gain of some 30% ofadditional production space.

In the General Vacuum market, we supply vacuum analysis, control, and measurement instruments to a broadarray of customers. They include e.g. leading and innovative companies and organization in the life science andanalytics industries, in the food packaging business, andthe global research and academic community.
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In the Refrigeration, Air Conditioning, and Automotive market, our customers specialize in cooling appliances and services. They focus on quality control, leaktightness of their products, and on leak detection whenservicing the installed base of products. Leak tightness
is also of paramount importance for many components
in modern cars – from engines to fuel tanks and airbags,
and an increased focus on testing lithium-ion batteries
and battery stacks. INFICON products support thechange from combustion to electric or hydrogen powered vehicles. We have designed and developed
leak-testing devices specifically for this rapidly growing market.

and over a long time. Besides cooling agents should notleak into the ambient. The highly sophisticated mass
spectrometers and proprietary software of INFICON’s
Refrigerant Leak Detectors enable appliance manufacturers to detect all kinds of refrigerants during the various productions steps, in the final quality testing of thefinished product, and when servicing the installed devices. Spotting leaks of 0.05 grams per year, they aretimes more accurate than industry standards require.
The benefits are obvious for the manufacturers, forconsumers, and the environment.
Understanding and anticipating our customers’ mostpressing, emerging, and future needs, spurs anddrives innovation. At INFICON, we understand industrial
innovation as a multi-layered process ranging fromcontinuous enhancements and optimization efforts forexisting product categories, to screening, applying
and leveraging the latest scientific discoveries into newuse cases, products, and services. INFICON is anexpert in developing market-leading instruments for gas
analysis, measurement, and control. In many industries, our products are recognized as technology benchmarks. The high innovation pace allows INFICON tohold and expand its number 1 to 3 positions in all target markets.

In the Security & Energy market, we supply public
and private sector clients with devices to rapidly detectand analyze gases and volatile organic compounds.
INFICON products help identify chemical agents andhazardous volatile compounds and thus increase
the safety of people and the environment.
Innovation and market leadership
Global competition keeps the innovation pace high.
INFICON strives to provide customers with the best
available technology for their complex and rapidly evolving vacuum technology production processes andtools. INFICON devices guarantee maximum accuracyof measurement results. Our products and services
help customers gain the best control and predictabilityof their processes and maximize productivity andyield while minimizing production time, material usage,
scrap rate and labor and maximizing the product life
cycle. Employing INFICON components and instruments
leads to the overall lowest cost of ownership in thelonger term. The use of INFICON tools in the refrigeration industry provides an illustrative example of thisapproach: Globally, almost 200 million refrigeration units
are built and sold annually. They all work similarly.
A compressor is the heart of the system. It liquefies agaseous cooling agent emitting heat to the ambient.
Pressurized, the liquefied coolant gets into the evaporator inside e.g. a fridge or an air conditioning unit.
Absorbing heat from within the fridge or the air intake inan AC unit cools our food in the fridge or the air. In
this process step, the liquid coolant changes back to its
gaseous state which is then again pumped to thecompressor. The leak tightness of such systems is key.
Only tight systems work correctly, energy efficiently,
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•	The Transpector® APX family of products saw 3
additional variants being launched in 2022. These
products support the emerging customer needs ofprocess monitoring for harsh applications in theevolution of Moore’s Law.

In 2022, INFICON launched a series of new products
and technologies, including first-of-a-kind innovations
and updated versions of existing products. These novelties include amongst others•	The Ion Reference Gauge IRG080 is a first-of-a-kindvacuum sensor developed for precise total pressure
measurement in vacuum systems. Based on an innovative concept of the ionization vacuum gauge (thehot cathode emits electrons travelling on a straight path
into a Faraday cup), IRG080 is suitable as reference
standard in the range of 10-8 mbar to 10-4 mbar.
IRG080 offers unmatched accuracy down to 1%, predictable gas sensitivity with a very small spread,very good short-term repeatability and reproducibility.
The gauge is the ideal solution for metrology andcalibration. IRG080 is connected and controlled by
the IRC081 display and operating unit.

•	HP100 is the newest sensor in our optical portfolio.
The sensor is a self-generating plasma-based sensor
that can operate in pressures of up to 1 atmospherewith part per million and extends the range from ourcurrent Quantus LP100 sensor.

•	VGC094 is a prestigious solution for vacuum process
measurement, control and data log. Compatible to thewide range of INFICON passive gauges, VGC094 isable to monitor the entire pressure range from 1 × 1011 to 1000 mbar. VGC094 can be configured to control up to 4 passive gauge heads (Pirani gauges, inverted magnetron gauges) by two sets of measuring
cards. The controller provides latest digital interfaces(USB, RS485, Ethernet) and user’s specific communication standards with individual communication cards.
VGC094 the ideal solution for long distance, high temperature or high radiation extreme applications.

• IMC-300 the newest deposition controller used in
OLED and optical coating industries offers many performance improvements, as well as, patented algorithms to predict system health, improve yield, and aid
in cost reduction.

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•	HAPSITE® CDT, extended capabilities over the legacy
HAPSITE ER continue to show high customer value
as demonstrated at recent military exercises and theimmediate tender funding for foreign governmentand security agencies.

•	UL6000 Fab PLUS is an all-new leak detector featuring the novel I·RISE technology. Leak detection isboth time-consuming and complex. By measuring rateof-rise, semiconductor- and vacuum equipment is
continuously monitored during operation. Upon leakindication by this integral leak test, leak positions
are then localized using the helium spraying method
allowing for the required repair. This is followed byanother leak test using pressure increase or so-calledvacuum decay measurement – an intricate process
which needs to be repeated until all leaks are detected.
Moreover, to be as precise as possible, measurement times for this procedure are often particularly longfor large equipment volumes. Thanks to I·RISE, ourIntelligent Rate-of-rise feature, the new UL6000 Fab
PLUS now performs pressure increase measurement
all by itself and combines it with the helium spraying
method. Our patented system enables measurement
times to drop drastically, and thus helps minimize bothgeneral time for leak testing and fab equipment maintenance. Experience even faster and more precise
measurement results – in under 10 seconds, independent of chamber volume.

HAPSITE CDT portable chemical identification system identifies andquantifies narcotics, explosives and toxic industrial chemical threats

HAPSITE CDT is designed for the needs of military, civilian andhazardous response teams that require fast, on-site analysis

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Strongly connected to our customers

virtual contacts to our customers’ needs, we are providing augmented reality assisted advice, training,commissioning, or problem-solving expertise for overthe shoulder (OTS) applications.

INFICON was formed and operates since as a truly
customer-oriented Company. We are keen on turning ourcustomers’ emerging needs into our own innovation
targets. Through our close cooperation with OEMs andend-product manufacturers, we gain important information about both their needs as well as the needs oftheir customers, which in many instances are also ourcustomers for end-user products.

Product quality and compliance

INFICON wants to be recognized as the benchmark supplier of best-in-class products in its target markets.
Superior product quality is of utmost importance for
INFICON’s long-term existence and growth. It has a
profound impact on the ability to maintain and increase
market shares by outperforming the competition.
INFICON’s quality principles apply both to design andmanufacturing processes. They help reduce scrap
and waste in our own production, reduce energy andraw material consumption in our customers’ processes
and applications, and extend the life cycle of their finishedproducts. Thus, at INFICON the notion of sustainabilitylies at the heart of our lean manufacturing and lean facility management efforts.

INFICON’s global sales and service organization
includes globally approximately 350 people. In addition
to office staff, about half of them are highly skilledservice and application engineers who are in constantdialogue with our customers. On top of that, customers
can rely on the INFICON’s trained assistance from distributors and agents. We analyze customer feedback
carefully. We collect spontaneously expressed responses. In addition, we sporadically distribute customer
surveys in the various regions, for specific markets, or
certain product categories to unveil otherwise unexpressed customer wishes and opinions. We also systematically monitor external and internal data suchas customer complaints, product rejections, as well as
insights from our own development efforts or quality
assurance processes. On these grounds, we define
measures and derive actions for our own processes
to close the customer feedback loop full circle.

Compliance with all legal requirements ensures that norestricted materials of environmental concern enter
production. This quality approach is a true differentiatorand helps us position ourselves as number 1 to 2 inall target markets.
At INFICON, the design for manufacturability and thecontinuous improvements in production reduce scrap
and ensure efficient material use of raw materials andcomponents during all steps of production. Our compliance process ensures that replacement materials aredeveloped and evaluated in order to eliminate raw
materials, chemicals, or components of environmental
concern. While there are no Group-wide targets, alllocations have formulated individual goals for scrap in
production and/or so called cost of poor quality(COPQ) targets. Finding and eliminating the root cause
for COPQ (scrap, waste, customer complaints, problems in production, sorting, rework etc.) is an importantpart of our quality management system.

The proximity to our customers is an important sourceof innovation. Our sales and service staff learn about
our customers’ technical challenges help them develop
new applications, and spur our own in-house innovation and developments.
Cross-border travel remained constrained in various
parts of the world in 2022. National or local trips wereeasier. INFICON’s global presence proved to be a true
asset. Yet, the COVID-19 pandemic made personal contacts more difficult. So, INFICON further increased its
online and even virtual reality assisted communication
skills by offering video meetings, virtual product demonstrations and technical webinars. We host user-group
platforms such as e.g., the Leak Detection Academy,share technology roadmaps, run an INFICON channel
on YouTube, and invite customers to virtual exhibitions
or provide them with trial development kits. To tailor our

On a corporate level, INFICON monitors and documents
quality according to the ISO 9001:2015 requirements ina yearly Management Review. All ISO certified locations
provide their respective information for a consolidated
Group report. The final document contains over 200
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Products with social and environmental impact
Our innovation efforts and our strong product pipeline
inherently guarantee for the Company’s technologicalleadership, long-term growth and prosperity. At the sametime, they make an important contribution to resource
conservation at our customers’ and help protect the environment and humankind. All our research, development, and innovation goals encompass ideas to inherently promote a positive social and environmental
outcome.

pages and covers quality performance and indicators
on many levels. An audit (ISO 9001 and 14001) was
conducted in Balzers (LI) in November 2022 and revealed
no non-conformances.
Quality means producing results that meet the requirements for a defined purpose, ultimately generating
permanent customer satisfaction. Quality is a key factor
in determining our market position. Both our external
and internal customers determine to what extent their requirements are met and therefore set the standard of
the quality of our products and services. INFICON’s quality principles are documented in our quality policy.

Understanding how INFICON products help achieveenvironmental and social goals is a very important
aspect of the corporate purpose discussion. It helps
promote the engagement and commitment of ouremployees and solidifies the positive reputation of
INFICON in the public at large.

They include the following elements:
1.	Customer satisfaction and market knowledge aredetermining factors: Satisfying our customers’ expectations is of primary importance to our success.
Our strategic orientation builds on a thorough knowledge of the markets we serve.
2.	Our employees are the key to our success: We foster teamwork and understanding of environmental
issues and promote extensive communication in an
attractive work environment. We provide adequate
vocational and advanced training and professional
development to highly motivated employees thatare committed to our high quality goals.
3.	Know-how ensures future success: To offer our customers innovative solutions, we constantly cultivateand enhance our know-how through active collaboration with our suppliers and future partners.
4.	Quality is the result of managed processes: We constantly optimize our business processes in orderto supply our customers with products and services
that meet the agreed to quality standards. We comply
with state-of-the-art methods and fulfill special customer requirements, e.g. CE/CC requirement (Copy
Exactly / Change Control).
5.	Comprehensive continuous improvement: We measure our performance with defined key metrics andtake the required corrective measures.

INFICON’s flexible manufacturing model involves
materials and components sourced from many different
suppliers. We strive to use materials and componentsthat minimize negative impacts on our environment.
INFICONs products help reduce environmental impacts, prevent leakages etc., help customers reduce
waste and increase yield.
A revenue mapping analysis made in 2021 by an investment, wealth management and research institute andbank assesses that over 80% of INFICON’s revenue isaligned to the United Nations Sustainable Development Goals (SDGs), including goals 3, 9a, 9b, and 12.
Looking at key product categories, their positive effectcan be described as follows:•	Leak detectors spot harmful gases so they can rapidly
be sealed off. In capital-intensive industries such as
the manufacturing of semiconductors, employees mustfind and repair leaks very quickly. INFICON’s newest
solution is UL6000Fab. It is not only the most precise,durable and thus reliable testing system on the market, it saves time throughout the testing sequence.
https://www.inficon.com/en/products/ul6000-fab

INFICON monitors the success of its quality policy by
the customer feedback given during quality audits performed on-site. Two strategic customer audits took place
on-site in Balzers in 2022. One planned and scheduled
for our operations in China could not take place due torestrictions because of the COVID-19 pandemic.
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INFICON Sustainability Report 2022

Social responsibility•	Vacuum gauges control production processes andreduce waste and energy consumption. INFICON
gauges offer superior accuracy and reliability in compact designs. Four different technologies cover thewhole range of vacuum from ultra-high vacuum up
to atmospheric pressure. The Pirani technology
enables cost-effective measurement in the low and medium vacuum range. The Capacitance Diaphragmtechnology enables precise measurement in the low
vacuum range, whereas the ultra- and high-vacuum
ranges are covered by the Hot or Cold Ionization technologies. Each technology is available as a standalone sensor or combined with complementary measurement technologies. A recent example of sucha combined gauge is Augent™OPG550. This Optical
Plasma Vacuum Gauge combines two sensor technologies into one compact device for gas type monitoring from 1 x 10-7 to 5 mbar and to measure totalpressure from atmosphere down to 1 x 10-7 mbar at
the same time. An integrated Pirani sensor to switch
off plasma above 20 mbar protects Augent. In the measurement range between 1 x 10-7 and 5 mbar, thegauge allows the detection of gases such as oxygen,nitrogen, hydrogen or argon. https://www.inficon.
com/en/products/opg550. To learn more about the fullrange of INFICON gauges, view: https://www.inficon.
com/en/products/wide-range-vacuum-gauges•	Gas analyzers/Chemical identification systems
generate contamination profiles needed to rapidly
remove a hazardous risk or to contain valuable andoften hazardous process gases. INFICON developed
HAPSITE® ER person-portable Gas ChromatographMass Spectrometer (GC/MS) to help responders
quickly identify and accurately quantify a broad rangeof chemicals in unknown samples to provide actionable data, in order to protect the health and safety ofthemselves and others. The new HAPSITE CDT istaking the HAPSITE family to the next level with improved analytical capabilities and ease of use.
https://www.inficon.com/en/markets/military/hapsitecdt-introduction.
•	Another example is Transpector APX, the latest model in the family of market-leading Transpector RGAs,
specifically designed for advanced semiconductor
processes such as ALD, CVD, and Etch. https://www.inficon.com/en/products/residual-gas-analyzers

Employees – a core asset at INFICONINFICON is active in a highly competitive marketplace.
In our quest for talents, we compete not only with oftenmuch larger corporations but also with universities,
research laboratories and scientific institutions. Our
success relies on attracting, developing, empowering,and retaining the most talented employees. Smartcolleagues drive innovation and product excellence.
In 2022, INFICON Management and personnel committees at all sites met for workshops with the goal to
deepen the understanding of INFICON’s DNA. Our corporate culture rests on this Identity Statement withthree authentic, simple, individual, and future-oriented
enterprise goals

The identity statements serve to communicate in simple
terms why we as an INFICON family member get up
in the morning, go to work with a smile and are passionate and enjoy what we do.
Being recognized as an attractive, modern, and fair
employer where people at all levels are motivated andhappy to work, helps INFICON attract, recruit andretain the best suited talents. While INFICON does not
run a formal employer branding policy, the attractiveness of INFICON positions is well known in the industry.
We discuss these topics with all job applicants andsupporting employment agencies. Apart from competitive payment, we offer all our workers attractive performance-based financial benefits.
We see sustainability as one of our enablers which supports and allows us to execute the strategic initiatives
and growth plans. The personal goals for INFICON’s top
management include certain sustainability targets
such as e.g. to support efforts expanding the scope of
ESG information, facilitate non-financial data gathering, promote our commitment to be sustainable as a company, or define further KPIs.

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INFICON Sustainability Report 2022

Our colleagues welcome INFICON’s flexible working
hours and work patterns, our canteens where staff of
all levels meet and mingle, attractive lifelong learning anddevelopment programs, and many after-work social
activities that often include the families of our colleagues.

In 2022, the HR Team in Cologne analyzed the development turnover rate during the reporting year; the
COVID-19 pandemic along with new and changing national health and safety measures on the one handand a rising number of new colleagues joining INFICON
due to the ongoing expansion process were major
turnover factors. Even in these challenging times,
INFICON managed to fill openings in its staff in reasonably short times. The HR teams also conducted farewell interviews when colleagues retired or chose to continue their careers outside of INFICON to systematicallycollect feedback on INFICON as an employer.

Social activities take place regularly at all locations.
They include e.g. barbecue or summer festivals, familydays, Christmas and year-end parties, planned andspontaneous get-togethers to celebrate success, predefined milestones and company outings. These
events also take local customs and workforce preferences into account (as e.g., skiing days in Switzerlandand Liechtenstein with international participation; moon
festival or Lunar New Year celebrations in Asia). Apartfrom these instances, regular management updates at
every INFICON site create a shared culture that fosters identification, team spirit, creative cooperation, andintercultural inclusion.

Turnover rates
All numbers in Headcount
Joiners in HeadcountLeavers in Headcount
Joiner Rate
Leaver Rate

2021
247
114
25.0%
11.5%

2022
288
117
26%
10%

The data covers our 4 largest sites: the 3 competence centers Balzers (LI), Cologne (DE)and Syracuse (USA) as well as our production site in Aaland (FI)
Rates are calculated by dividing the total number of joiners/leavers by the total number of
employees in the respective year.

A comprehensive HR program structures INFICON’s
dialogue with its staff and workforce. Every new colleague receives a formal introduction to the Group andthe respective site on his or her first day. HR continues
to be in regular contact with all employees supported bynumerous programs rolled out across the whole Group.
These include courses on our Company values and business ethics, professional health and safety training,
the pillars of personal health (body, spirit, and soul),
INFICON’s value-based approach to corporate governance, leadership, and motivation.

Turnover rates
30%
25%

25,7%

25,0%

20%
15%
10%

11,5%

10,4%

5%

Every colleague annually discusses his or her performance and achievements, satisfaction, motivation,
personal development goals as well as communication
aspects at work with their immediate managers in a
structured appraisal dialogue. At Balzers and Cologne,
everyone prepares individually for these annual discussions. At Balzers, so-called energizing talks complement this process mid-year. The Human Resources
departments oversee this process and assess the longterm success with key performance indicators suchas employee satisfaction, loyalty, and fluctuation, as wellas participation in the various ongoing training, workshops, and development programs.

0%

2021
■ Joiners

48

2022■ Leavers

INFICON Sustainability Report 2022

Ongoing education and training
INFICON sees itself as a learning organization. It therefore offers ongoing training for all employees to empower everyone with the required knowledge and skills
to optimally fulfil their responsibilities and perform intheir respective jobs. These trainings respond both to
the needs of the individuals as well as the requirements of the market and the Company as a whole. They
unleash the employees’ potential, creativity, and moti­
vation to secure, stimulate and transfer expertise andknowledge.

The COVID-19 pandemic asked for special attention
during the last three years. As a Group, INFICON mastered the COVID challenges very well. According to
the local requirements, different measures were still taken at the various work sites in 2022.
In January 2022, INFICON implemented a COVID vaccination policy for all employees in Syracuse. This was
required in the context of INFICON’s supply contracts
with US federal authorities. In addition, the so called“New York Hero Act” was also implemented. It outlines
the protocol and procedures when dealing with airborne infectious diseases including amongst others e.g.
physical distancing, sneezing etiquette, personal
protection such as face masks and gloves, and handhygiene, health screenings when coming to work anda stay-at-home-policy if someone develops symptoms.
As all local employees in Syracuse were thus vaccinated,
the special COVID protocols were no longer required.
As in prior years, INFICON put up an on-site flu shot clinic in October 2022 as a service for all employees.

Data from our locations in Balzers (LI), Cologne (DE) andSyracuse (USA) as well as our manufacturing site
in Aaland (FI) show that in 2022, the average hours of
training per employee reached a level of 7.6 hours.
Health and Safety at INFICON
The Business Ethics Policy declares personal healthand safety of all employees a top priority. We haveadopted policies and procedures to ensure that we meetand exceed all applicable health and safety laws andregulations as well as prevailing industry standards. We
track all these measures by key performance indicators on incidents, accidents, absenteeism. We evaluate
feedback from our human resource departments, ourworkforce, and from our insurance companies.

At INFICON in Balzers, the implemented COVID-19
health and safety measures proved to be very successful. There was no significant impact from COVID-19
on e.g. working days lost due to sickness of employees
over the past three years. INFICON continues to provide hand-sanitizing gel at the entrances and promotes
cautiousness in any physical contact. All production
equipment is CE compliant. Identification and assessment of risks is done with the help of SUVA (Swiss
work accident insurance) guidelines/checklists or external experts if appropriate.

A regularly reviewed training program ensures
implementation of all safety policies and procedures.
Training topics range from general safety at work
courses, specific instructions for special jobs or equipment and sessions on how to adjust one’s workstation
ergonomically, to firefighting courses, lessons on applicable chemical laws, and teachings on how to correctly
handle critical chemicals, to name a few examples. Regular escape, rescue and evacuation drills familiarize
the employees with the facilities at the various works
sites. Training of occupational health and safety related
topics is e.g. part of the onboarding program for every
new colleague.

The COVID-19 related measures taken at INFICON in
Cologne over the past three years were gradually
alleviated. In order to keep the risks as little as possible,
INFICON still offers hand-sanitizing liquids, hands
out free face masks and self-testing equipment. Overall,
the pandemic was well managed as highlighted by
the fact that there were no significant increases in sickleave days. In autumn 2022, colleagues at INFICON
in Cologne were all invited to take free influenza vaccination shots.

An EHS program designed in 2021 was rolled out in
INFICON’s Syracuse plant, including respective
training sessions on work safety, health and workplace ergonomics.

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INFICON Sustainability Report 2022

Health and safety is everybody’s objective
At INFICON, employees and workers are involved in
the development, implementation and evaluation of theoccupational health and safety management system.
Everybody should report any relevant EHS findings, incidents, accidents or potential risks to their supervisors
or a dedicated safety officer and all employees are invited
to make suggestions. The work sites have clearlystructured reporting schemes. At Cologne, any injury
and accident is brought to the attention of the Human
Resources Department using a special form. In the caseof work/travel accidents with a lost time of more than
three working days, it is also reported to the Employer’s
Liability Insurance Association. If an accident occurs,
the nature and scope of occupational health and safetycompliance are investigated. If necessary, experts
help to clarify the situation, reassess risks and implement
corrective measures. Syracuse has a reporting ticket
system; an incident is flagged to the EHS manager whothen follows up with employees, supervisors and witnesses to determine the root cause and possible risk
mitigation steps. In Balzers, an accident report form
supports the notification process to the HR department.
In addition, all accidents and near accidents arebrought to the attention of the safety officer for a root
cause analysis and for the implementation of corrective/preventive actions as appropriate with the help of
SUVA checklists.

Occupational Health and Safety
Accidents resulting in at least one
lost work day
Lost work days
Accident Frequency Rate (AFR)
Accident Severity Rate (ASR)

2021

2022

8

7

31
1.1
4.1

17
0.9
2.1

The data covers our 4 largest sites: the 3 competence centers Balzers (LI), Cologne (DE)and Syracuse (USA) as well as our production site in Aaland (FI)
Rates are calculated by dividing accidents/lost work days and are per 200,000
working hours.

INFICON’s long-term success as a high-tech Company
active in a competitive marketplace relies on its competent staff. We are therefore always looking for the best
available person for any job opening and seek to create the right mix of people, technical capabilities, andhuman competence across our Group. INFICON’s
employment policies and procedures provide for equal
opportunity and fairness in employment decisions.
We do not discriminate based on race, color, ancestry,
place of origin, religious belief, physical or mental
disability, age, gender, sexual orientation, marital status,
family status or source of income, and we take steps
to comply with all applicable affirmative action legislation. Since 2021, INFICON job offers explicitly invite
diverse, female, and male applicants.
INFICON’s workforce is very diverse in terms ofnationalities: 13 different nationalities of our employees
working at our Balzers/LI location. Also at the othermajor production sites in Cologne and Syracuse, ourcolleagues have widespread national backgrounds.

On a more personal level, INFICON Balzers supports
programs such as the cycle to work initiative, yoga
sessions, and encourages workers to join jogging or
walking groups. INFICON also supports a soccer
team – the IFCN Kickers – who compete with other corporate football teams in a local championship. In 2022,
the IFCN Kickers won that tournament. Most INFICON
work sites have canteens. They offer freshly cooked
food for lunch that is partly paid for by the Company.
INFICON also offers fresh fruits free of charge andinvites people to drink enough water at fresh water dispensers available all over the facilities. Our safety
manual also calls to take the necessary measures toprevent home and leisure accidents (e.g. warm-up).

Against the backdrop of our diverse global workforce,the so-called “I3C Initiative” helps create a common
INFICON approach and understanding in working together. Launched five years ago, the I3C initiative(Care, Commit, and Change) promotes the following
key understandings:•	We care about our customers, our Company,
and ourselves.
•	We commit to accept responsibilities.
•	We change to deliver better results.
In the context of this I3C initiative, a continued focus
lies on how INFICON colleagues interact with eachother. Tent-cards on the tables of meeting rooms remind
everyone that it is essential to formulate requests
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INFICON Sustainability Report 2022

clearly and help colleagues understand why the request
was made and by when an answer is expected. This
has added a lot of commitment and accountability to internal business requests and speeded up reaction time.

Diversity by gender, 2022
100%
80%

We also endeavor to ensure that all employees aretreated fairly in all aspects of the employment relationship, including performance appraisals, compensation,
opportunities for advancement, and disciplinary matters.
While INFICON supports a gender diverse personnel
policy, the nature of our technology driven business may
serve as a reason why the workforce, the Executive
Management, and the Board of Directors consist of more
men than women. The age split shows that all age
groups are well represented in INFICON’s workforce,more evenly spread on a staff level, while Management
and Board have higher average ages.

60%
40%

0%

80%

Employees

Executive
management
Men

Women

Gender distribution by employment type 2022
100%
23%

80%

55%

60%

2021 Share2022 Share

40%

949

96%

1,091

97%

20%

40

4%

31

3%

0%

77%
45%

Full time

Part time

Men

Women

Excl. apprentices, interns, trainees, externals

Diversity by age group, 2022
100%

860
89

91%
9%

1,056
35

97%
3%

80%

31%
67%

60%

Employees by
employment type(excl. apprentices,interns, trainees,
externals)
Full time
Part time

Board of Directors

The data covers our 4 largest sites: the 3 competence centers Balzers (LI), Cologne (DE)and Syracuse (USA) as well as our production site in Aaland (FI)Composition of workforce

Employees by
employment contract(excl. apprentices,interns, trainees,
externals)
Permanent
Fixed-term

100%
76%

20%

In 2022, no discrimination incidents were reported
throughout the Group.

All numbers in
Headcount
Employees (excl.
apprentices, interns,
trainees, externals)
Apprentices, interns,
trainees, externals

20%

24%

40%
20%

896
53

94%
6%

1,034
57

0%

95%
5%

50%
33%

20%
Employees<30

The data covers our 4 largest sites: the 3 competence centers Balzers (LI), Cologne (DE)and Syracuse (USA) as well as our production site in Aaland (FI)80%

Executive
management
30–50

20%
Board of Directors>50

The data covers our 4 largest sites: the 3 competence centers Balzers (LI), Cologne (DE)and Syracuse (USA) as well as our production site in Aaland (FI)51

INFICON Sustainability Report 2022

Responsible supplier standards
The close cooperation with suppliers is the backbone of
INFICON’s flexible manufacturing model. INFICON
therefore devotes a lot of attention to the careful selection, the ongoing management and continuous devel­
opment of our suppliers. Key suppliers have e.g., signed
an agreement outlining INFICON’s expectations regarding requirements on the production change control process (CE/CC). We also include vital elements suchas the prevention of child or forced labor in our suppliercontracts. Compliancy with our business ethics policy
is a standard topic at our regular supplier meetings.

Purchasing volume share by region(FY 2022)

8%
29%
63%

78%

EuropeNorth America

INFICON’s supplier base of over 1000 production
material suppliers is truly global. Yet, the largest 20 suppliers make up for about 40% of INFICON’s sourcing.
Looking at the regional split of our suppliers, most of
INFICON’s direct suppliers come from Europe (50%),
followed by North American (36%), and Asian suppliers.
This view, obviously, looks at the actual invoicing addresses of the tier 1 suppliers and does not reflect tier2 and 3 contractors. The proportion of material andcomponents originally manufactured in Asia is certainly
higher at INFICON than this regional split or the purchasing volume analysis suggest. 63% of the sourcing
volume is coming from Europe and here mainly from
Germany and Switzerland, 29% from America, and 8%
from Asia. 49% of INFICON’s sourced input concerns
electronic, mechanical, or metalworking items, while
pumps account for 22%, and printed circuit boards
for 11%.

Asia

Major purchasing categories(AVG 5Y)

22%

31%

18%

78%
29%

Vacuum Pumps
Other

Electronics
Metal/MechanicalTop 20 Suppliers share of purchasing volume(FY 2022)

Supplier share by region(FY 2022)

40%

14%
78%
36%
78%

50%

Top20 suppliers
Other supplier
EuropeNorth America

Asia

52

60%

INFICON Sustainability Report 2022

Partner to our hosting communities
INFICON also cares for the communities of its employees. As a corporate citizen, we support many local
activities where our colleagues eagerly participate e.g.,
the yearly cycle to work contest. For years, the Balzers
workforce regularly ranks in the top three positions of
the Liechtenstein companies whose workers manage tocycle to work on more than 50% of the summer period.

Environmental management system
All manufacturing sites adhere to ISO 14001:2015.
According to this ISO release, all manufacturing locations are required to analyze their risks and opportu­
nities with respect to environmental performance ina systematic way, to minimize their ecological risks,
and to identify any corresponding need for action. The
manufacturing facilities are themselves in charge ofsetting priorities and implementing the actions they deem
necessary. The environmental managers at each location have created teams and programs to monitor, analyze and minimize energy consumption and other aspects detrimental to our carbon footprint. We monitor
progress yearly. Created in 2020, the “Green Team”
in Syracuse aligned its activities in 2022 with the global
INFICON initiatives. Special attention lay in 2022 on
the materials and waste analyses, water and effluent initiatives, energy and emission, as well as biodiversity.
At Syracuse, the campus lawn is now being converted
into a biologically more valuable habitat to increase
bird habitat, reduce heavy rainwater run-offs, reducing
landscaping expenses. Currently, we evaluate theuse of engineered floating island reactors to promote thenatural self-cleaning capacities of our ponds. We havealso found out that the new aspect of the campus is more
inspiring for employees during their breaks.

INFICON AG, Balzers, also supports a soccer teammade up from INFICON colleagues who compete
against other corporate teams of local companies.
Besides our commitment to the training of young colleagues and the ongoing education of our own workforce, we support e.g., in the Principality of Liechtenstein special out-of-school weeks for students. INFICON
annually hosts a whole class for one week in a special
business-oriented course where the students familiarize
themselves with economy, business, and management. In addition, INFICON sponsors the work on a bachelor thesis at a local university of applied sciences insouth-eastern Switzerland.
In the USA, INFICON supports not-for-profit organizations that are dear and important to our employees andthe local community. A voluntary team of some eight
employees forms a Council that manages the corporate
budget for charitable contributions. This involvement
provides opportunities for INFICON colleagues to do
voluntary work with the Samaritan Center, the Salvation Army, the Humane Association and others, or toparticipate individually in walks, runs, or bike-a-thons.

To increase the visibility and importance of INFICON’s
sustainability efforts for all employees, we createdspecial steering committees e.g. at the Syracuse works.
This body, led by a dedicated sustainability manager
who serves as point of contact, sees to it that sustainability is incorporated into the local strategies andmeasures are aligned with corporate goals, that teams
are held accountable for progress in this area and thatthe momentum of the efforts is kept high, that all levels
are directed onto a shared sustainability path. The
team has started in 2022 to use a Kanban board to formalize, support and better visualize and prioritize therespective project management an initiatives. One of the
key priorities in 2022 was the efficient data collection.
We currently evaluate software to best connect to corporate data portals to support the compilation of environmental data. Internally, the importance of sustainability is highlighted by educational activities such as a
new speaker series, the dissemination of internal media
posts, and the creation of a confluence page to moreeasily disseminate information.

Environmental protection

Environmental protection, safety and product stewardshiphave long been key priorities at INFICON. INFICON
engages in many efforts to reduce any negative impact
of its business. These measures have often multiple
effects – in terms of health and safety benefits for theemployees, minimization of environmental damage,and the quality of our products and services.

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INFICON Sustainability Report 2022

Environmental compliance
All manufacturing facilities observe and comply withinternational and regional legislation, as well as guidelines. All critical suppliers have to sign quality andenvironmental agreements that they comply with allenvironmental laws. The Company observes theEuropean Union’s regulation on chemicals and their safeuse (Registration, Evaluation, Authorization andRestriction of Chemicals-REACH). INFICON complies
with the European Union’s directive on the Restrictionof Hazardous Substances (RoHS) addressing the use ofcertain hazardous substances in electrical and electronic equipment. We monitor the list substances of very
high concern (SVHC Candidate List), and focus in the
US on so called conflict materials (CMRT, EMRT, TSCA).
In addition, INFICON also observes the standards set
out in the code of conduct of the Responsible Business
Alliance (RBA) – a non-profit coalition of leading electronics companies dedicated to sustainability and improving corporate social responsibility. INFICON also
completed a RBA audit in 2022 to keep abreast withthe latest developments in this area. Moreover, theCompany observes the UN Security Council Report
S/2006/525 regarding “conflict minerals”. INFICON
has realized that there are more and more regulations
to be observed and is aware of new emerging regulations and reportings. We are currently assessing of how
to best tackle these challenges on a Group-wide level,
rather than dealing with these issues on a site persite basis.

While INFICON grew sales by 12.7%, it managed to cut
its overall energy consumption by 6% to 14,474 Mwh.
This impressive reduction was achieved by importantrefurbishing projects at various production locations
and thus the direct outcome of INFICON’s focus on theareas of improvement defined in the prior year. One target was to energetically improve our production buildings.
Electricity is the most important energy carrier at
INFICON, accounting for 81.6% of the Group wide energy consumption. Therefore we agreed – as a second
important goal for the reporting year – to increase theshare of electricity from renewable sources.
The combined effect of these efforts and numerous contributions from other, smaller projects such as theinstallation of PV panels on roof tops or better building
insulations, allowed INFICON to curtail the total greenhouse gas emission by 59% to just 502 tons for thereporting year. In the prior year, the CO2 emissions
were already cut by 30% Group wide. Per employee thereduction reached in 2022 is 65%.
A strong focus on waste, looking for ways to avoid thegeneration of waste in the first place, and continued
recycling efforts resulted in a total waste reduction of
23% to 295.8 tons.
These reductions are all even more impressive
when mirrored against the Group wide sales growth of
16.8%, excluding negative currency effects

INFICON did not encounter any non-compliance withenvironmental laws in 2022.

After much analysis and discussion, we have defined
the following areas as important and highly relevant,and therefore as the priority target action areas:

Energy and carbon emissions
Since the first implementation of ISO 14001 as early as
1998, INFICON closely monitors and analyzes resource
consumption and emissions. Our main environmental
impacts and efforts relate to energy consumption andCO2 emissions and we strive for in-house reductionsof CO2 emissions, a decrease in resource consumptions
and a lowering of our ecological footprint.

Green electricity: We have converted all major production sites to 100% certified green electricity. In 2021
already 51% of electricity came from renewable sources,
as all major production sites in Europa had switched
to 100% renewable electricity. In the reporting year, wemanaged to source 100% green electricity also for our
Syracuse/New York plant, which utilizes 100% carbonemission-free, certified green electricity and accordingly rising the quote of green electricity now to 81%.

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INFICON Sustainability Report 2022

In Finland, solar panels produce electricity on the roofsof our facilities.

Views of the new HVAC facility, Balzers (LI)

Main building for production & offices with the new solar panelson the roof, INFICON Aaland (FI)Optimized Buildings, technical installations,premises: Our production and office buildings offer
many interesting angles to promote sustainability,
reduce energy consumption and emission of greenhousegases.
In 2022, INFICON AG/Balzers installed a new HVAC
system including an energy recovery system. It allowed
INFICON to cut the local energy consumption for heating by half in 2022 and should allow for savings of up to
90% when the system is running for a full calendar
year. We achieved this by replacing an already environmental friendly, district wood chip heating with a
new system that recuperates the heat generated by the
production equipment to heat the whole building. Rather
than getting rid of excess heat, we now use it. For thereporting year 2022, this effort resulted in a drastic
reduction of the local kWh consumption for heating andcooling from 432032 kWh to less than half, i.e. 204606
kWh, bearing in mind that the new system was only running during a portion of the year, the savings for a fullyear should be even bigger. We estimate that we will use
up to 90% less energy for heating and cooling in theyears ahead.

Views of the new HVAC facility, Balzers (LI)In the USA, motion detecting occupancy sensor power
strips have been rolled out in the laboratories. These
intelligent power strips virtually take appliances off when
no motion is detected in the preset shut down period.
Conventional lighting is gradually replaced with energyefficient, motion sensor controlled LED lighting solutions. Water usage surveys led to the installation of waterless urinals and the evaluation of alternative water
sources such as hydropanels that condensate moisturefrom the air.
At Syracuse, the campus lawn is now being converted
into a biologically more valuable habitat to increase
bird habitat, reduce heavy rainwater run-offs, reducing
landscaping expenses. Currently, we are evaluation
the use of engineered floating island reactors to promote
the natural self-cleaning capacities of our ponds. We
have also found out that the new aspect of the campus
is more inspiring for employees during their breaks.

In addition, a new closed-loop cooling water concept
for the laboratories and production shop floors should
result in a significantly lower water consumption.

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INFICON Sustainability Report 2022

Commuter traffic and business trips: Knowingthat many issues cannot be tackled individually,
INFICON AG, Balzers, has teamed up with other local
industrial companies to highlight the need of a new
train Swiss Railway train station close to Balzers,
Liechtenstein. INFICON will cover some of the costs ofthe establishment of this new train stop at Trübbach as
this will allow commuters from the Swiss Rhine Valley tocommute more comfortably to work by public transport.

Short-term, our goal is to focus on thefollowing areas:•	Plans for further improvements in production buildings
are analyzed and developed within the strategy development and review/budget process (e.g. energy recovery, geothermal and solar energy, thermal insulation).
•	Scope 3 Emissions: Understanding, testing feasibility
and implementation, and first attempt/trials at
assessing all indirect greenhouse gas emissions in
the value chain.
•	Development of a target setting (KPI) and emission
goals definition process•	Create, Care, Live and Sustainability as an enabler tosupport our strategic initiatives and growth plans. E.g.
-	Globalize sustainability education efforts-	Define global on-boarding training and seminars that
include INFICON’s sustainability goals & principles.
• Review of mobility concepts, support the programsand the needed infrastructure, promote commuting by
car-sharing or using public transport where possible.

Also in the USA, we look at how our employees cometo work: Another focus lay on promoting more environmental friendly ways to commute to work. INFICON
colleagues now have access to a share-a-ride platform
with other companies. The benefits are obvious: lesspeople travel by themselves. This fosters a community
feeling. More people can relax during the commute
rather than focusing on the traffic behind the wheel. Fewer cars on the road reduces gasoline consumption.

Experience and skills gained during the pandemic continue to be the basis to keep business travel at a reasonable level. In this way, we support the global goals
for reducing CO2 emissions.

Greenhouse gas emissions by scope(in tCO2e)

2000

1,783

1600
1200
800
400
0

1,270
+12% (26%)
572

513

Scope 1
2020

2021

1,237

(48%)
665

423

Scope 2
2022

56

(31%)
(59%)

(88%)
78

502
Scope 1+2

INFICON Sustainability Report 2022

Energy and Emission

We will also closely follow the recommendations of the
Task Force on Climate-Related Financial Disclosures(TCFD) for Swiss companies and the EU taxonomy regulations. We will follow and watch the various regional
and local developments and requirements examine theirimplementation and, if necessary, address them stepby-step.

2020

2021

Delta
20222022 2021

Total energy con14,024 15,429 14,474
sumption in MWh
Electricity
10,691 11,591 11,812
of which certified
25%
51%
81%
green electricity
Natural gas
2,788 3,110 2,093
District heating
544
729
570
(wood chips)
Energy consumption
15,828 15,601 12,675
in kWh per employee

To support these sustainability goals the individual goals
for 2023 of the Group Management also include
the above described sustainability ambitions and goals.
To strengthen its sustainability approach, the Board
has already defined a dedicated representative for ESG
and sustainability matters in 2020 in the person of
Dr. Richard Fischer. Furthermore, it has already been
decided that a Sustainability Council consisting of 3
persons (two Board members and Group Management)
will be established in 2023. The council will define
roadmap, reviews targets, studies the regulatory developments in the ESG area and supports the Audit
Committee in non-financial reporting.

Greenhouse gas
emissions in tCO2e
Scope 1:Natural gas
Scope 2: Electricity& district heating
Greenhouse gas
emissions in kgCO2e
per employee

(6%)
2%

(33%)
(22%)
(19%)

1,783

1,237

502

(59%)

513

572

423

(26%)

1,270

665

78

(88%)

2,012

1,251

439

(65%)

2022 and 2021 data in the above table covers Inficon’s Big 4 locations: Balzers in
Liechtenstein, Syracuse in the USA, Cologne in Germany, and Aaland in Finland.
The 2020 data covers Inficon’s Big 3 locations: Balzers in Liechtenstein, Syracuse in the
USA and Cologne in Germany.
Data is calculated on a market-based approach. For the location-based method Scope 2
emissions count 1,562t for 2022, 1,786t for 2021 and 1,660t for 2020. Emission factors
sourced from DEFRA 2022 and IEA 2022 and domestic electricity providers.

57

INFICON Sustainability Report 2022

Waste

Share of energy carries consumend
100%
80%

4.7%

3.9%

20.2%

14.5%

Total waste in metric tons
Waste diverted from disposal
through recycling
Waste directed to disposal
Incineration with energy
recovery
Other disposal operations

60%
81.6%

75.1%

40%
20%

2022
296

Delta
(23%)

206

138

(33%)

181

158

(13%)

173

157

(9%)

8.0

0.3

(97%)

The data covers our 4 largest sites: the 3 competence centers Balzers (LI), Cologne (DE)and Syracuse (USA) as well as our production site in Aaland (FI)

0%

2021

Electricity

Natural gas

2022
District heating (wood chips)

INFICON has initiated comprehensive refurbishing andshop floor expansion programs at its Syracuse andBalzers plants.

Energy per net sales

kWh/
kUSD

45

INFICON promotes a holistic view on waste: We conduct
educational sessions focusing on waste and othersustainability issues to make people more aware about
what each individual can do. Waste stream analyses
at various production sites has resulted in the collectionof single-type material waste such as e.g. clean room
shoe covers. In Syracuse, we have directed 2,800 poundsof used cleanroom covers to single-material PPE recycling. We have also started to compost food waste andcoffee grounds from our cafeterias. In order to increase
the efficiency of our local sustainability efforts, we havecreated bespoke points of contacts and functions thatdeal with these issues. This increases the speed of implementation and relieves the burden on production
and facility management teams.

30

15

2021
386

2018

2019

2020

2021

2022

The data covers our 4 largest sites: the 3 competence centers Balzers (LI), Cologne (DE)and Syracuse (USA) as well as our production site in Aaland (FI)Due to the COVID-19 pandemic, the amount of businesstravel decreased in 2021 and 2022. INFICON adopted
augmented and virtual reality strategies to best interact
with customer over distance. Management meetings
were held online. Many investor meetings were held
online.

Non-hazardous waste 2022

53%

47%

78%

Waste diverted from disposal through recycling
Incineration with energy recovery

58

INFICON Sustainability Report 2022

The Global Reporting Initiative (GRI) provides the world’s most widely usedframework for sustainability reporting, offering a structured format to share
information coherently and comprehensively about material issues, performance
metrics and the management of sustainability-related issues.

GRI Content Index
INFICON has reported in accordance with the GRI Standards for the period from 01 January 2022 to 31 December 2022. INFICON has not made any restatements in the reporting period that follows the requirements set out in
the GRI Standards requirements. For the Content Index – Essentials Service, GRI Services reviewed that the
GRI content index is presented clearly and in a manner consistent with the Standards, and that the references fordisclosures 2 – 1 to 2 – 5, 3 – 1 and 3 – 2 are aligned with the appropriate sections in the body of the report.
This service was carried out on the English version of the report.
Universal Standards
GRI Standard

Disclosure

GRI 1: Foundation
2021
GRI 2: General
Disclosures 2021
The organization and its reporting practices
GRI 2: General
2-1 Organizational Details
Disclosures 2021
2-2 Entities included in theorganization’s sustainability
reporting
2-3 Reporting period, frequency
and contact point

Location/Information

14
70
Fiscal year 2022, annually
Contact:
Matthias Tröndle,
Vice President and CFOINFICON HOLDING AG,
Hintergasse 15 B
CH-7310 Bad Ragaz, Switzerland

2-4 Restatements of information
2-5 External assurance
Activities and workers
GRI 2: General
2-6 Activities, value chain andDisclosures 2021
other business relationships
2-7 Employees
2-8 Workers who are not
employees

Tel. +41 81 300 4980
Fax +41 81 300 4988
E-mail:matthias.troendle@inficon.com
none
none
40–44
51
51

59

Omission

Requirement(s) omitted (RO)Reason (R)Explanation (E)INFICON Sustainability Report 2022

GRI Standard

Disclosure

Location/Information

Governance
GRI 2: General
Disclosures 2021

2-9 Governance structure and16, 21, 51
composition
2-10 Nomination and selection of16, 21, 51
the highest governance body
2-11 Chair of the highest
16
governance body
2-12 Role of the highest
17
governance body in overseeing
the management of impacts
2-13 Delegation of responsibility
17
for managing impacts
2-14 Role of the highest governance 17
body in sustainability reporting
2-15 Conflicts of interest
21, 392-16 Communication of24
critical concerns
2-17 Collective knowledge of the18highest governance body
2-18 Evaluation of the performance 26of the highest governance body
2-19 Remuneration policies
26
2-20 Process to determine
26, 27
remuneration
2-21 Annual total compensation
31
rationStrategy, policies and practices
GRI 2: General2-22 Statement on sustainable
34
Disclosures 2021
development strategy
2-23 Policy commitments
40, 542-24 Embedding policy
47
commitments
2-25 Processes to remediate
53
negative impacts
2-26 Mechanisms for seeking
36
advice and raising concerns
2-27 Compliance with laws
40, 49, 54
and regulations
2-28 Membership associations
38, 53
Stakeholder engagement
GRI 2: General
2-29 Approach to stakeholder
34, 36Disclosures 2021
engagement
2-30 Collective bargaining
Collective bargaining agreements
agreements
exist in Germany and Sweden(about 19% of work force).

60

Omission

Requirement(s) omitted (RO)Reason (R)Explanation (E)INFICON Sustainability Report 2022

Topic-specific Standards
GRI Standard

Disclosure

GRI 3: Material
Topics 2021
Materiality assessment and list of material topics
GRI 3: Material
3-1 Process to determine
Topics 2021
material topics
3-2 List of material topics
Technology leadership
GRI 3: Material
3-3 Management of material topics
Topics 2021
Product impact
GRI 3: Material
3-3 Management of material topics
Topics 2021
Product quality and compliance
GRI 3: Material
3-3 Management of material topics
Topics 2021
Customer relations
GRI 3: Material
3-3 Management of material topics
Topics 2021
Good governance
GRI 3: Material
3-3 Management of material topics
Topics 2021
GRI 205: Anti-corrup- 205-1 Operations assessed fortion 2016risks related to corruption
205-2 Communication and training
about anti-corruption policies andprocedures
205-3 Confirmed incidents ofcorruption and actions taken
206-1 Legal actions for
GRI 206: Anti-competitive Behavior
anti-competitive behavior
2016
GRI 408: Child Labor 408-1 Operations and suppliers
at significant risk for incidents of
2016
child labor409-1 Operations and suppliers
GRI 409: Forced orCompulsory Labor
at significant risk of incidents of2016
forced or compulsory labor
Training and education
GRI 3: Material
3-3 Management of material topics
Topics 2021
GRI 404: Training
404-2 Programs for upgradingand Education 2016 employee skills and transition
assistance programs
404-3 Percentage of employees
receiving regular performance
reviews

Location/Information

35
35
38, 3946, 47

45

45

39
40
40
40
40
40
40, 52

49
37, 4648

61

Omission

Requirement(s) omitted (RO)Reason (R)Explanation (E)INFICON Sustainability Report 2022

GRI Standard

Disclosure

Attractive employer
GRI 3: Material
3-3 Management of material topics
Topics 2021
GRI 401: Employ401-1 New employee hires
ment 2016
and employee turnoverOccupational health and safety
GRI 3: Material
3-3 Management of material topics
Topics 2021
403-1 Occupational health and
GRI 403: Occupasafety management systemtional Health and
Safety 2018403-2 Hazard identification,risk assessment, and incident
investigation
403-3 Occupational healthservices403-4 Worker participation,
consultation, and communication
on occupational health and safety403-5 Worker training on
occupational health and safety403-6 Promotion of worker health403-7 Prevention and mitigation ofoccupational health and safety
impacts directly linked by business
relationships
403-9 Accidents and day lostDiversity
GRI 3: Material
3-3 Management of material topics
Topics 2021
405-1 Diversity of governance
GRI 405: Diversity
bodies and employees
and Equal
Opportunity 2016
GRI 406: Non-dis406-1 Incidents of discrimination
crimination 2016
and corrective actions taken
Responsible supplier standards
GRI 3: Material
3-3 Management of material topics
Topics 2021
Market leadership
GRI 3: Material
3-3 Management of material topics
Topics 2021
Environmental management system
GRI 3: Material
3-3 Management of material topics
Topics 2021

Location/Information

47
48

49
50
50
49
49, 50
49–51
49–51
49

50
51
51
51

52

42

53

62

Omission

Requirement(s) omitted (RO)Reason (R)Explanation (E)INFICON Sustainability Report 2022

GRI Standard

Disclosure

Efficient materials sourcing and use
GRI 3: Material
3-3 Management of material topics
Topics 2021
GRI 306: Waste 2020 306-3 Waste generated
306-5 Waste directed to disposal
Profitable growth
GRI 3: Material
3-3 Management of material topics
Topics 2021
GRI 201: Economic
201-1 Direct economic value
Performance 2016
generated and distributed
Energy and carbon emissions
GRI 3: Material
3-3 Management of material topics
Topics 2021
GRI 302: Energy
302-1 Energy consumption within
2016
the organization
GRI 305: Emissions 305-1 Direct (Scope 1) GHG
2016emissions305-2 Energy indirect (Scope 2)
GHG emissions
305-5 Reduction of GHG
emissions
Environmental compliance
GRI 3: Material
3-3 Management of material topics
Topics 2021
Community and giving
GRI 3: Material
3-3 Management of material topics
Topics 2021
GRI 413: Local
413-1 Operations with local
Communities 2016
community engagement, impact
assessments, and development
programs

Location/Information

58
58
58
40
35

54
57
56, 5756, 57
55

54

37
37

63

Omission

Requirement(s) omitted (RO)Reason (R)Explanation (E)Financial Review(US Dollars in Millions)

Income Statement

Research and Development
Research and development costs decreased to
USD 45.5 million or 7.8% of net sales, as comparedwith USD 47.0 million or 9.1% in 2021. Mainly influenced by a favorable FX impact, the expenditures fortechnology and product development remained at ahigh level compared to 2021.

Net Sales
In 2022, net sales increased by 12.7% or USD 65.5 million to USD 581.3 million from USD 515.8 million in
2021. This includes a negative impact from currency
exchange rates (FX impacts) of USD (26.7) million or(5.2%) as well as an increase of 0.2% or USD 0.8 million from acquisitions. Excluding the negative FX impacts net sales increased organically by 17.7% in 2022.

Selling, General, and Administrative (SGA)
Selling, general, and administrative costs increased
to USD 109.6 million or 18.9% of sales in 2022 from
USD 99.5 million or 19.3% of sales in 2021. This
increase reflects the investments in additional employees and infrastructure resources.

Sales to the Semi & Vacuum Coating market have risen
the most of all markets by USD 43.9 million or 16.8%
to USD 305.3 million. This increase reflects a high demand from tool manufactures as well as a constantdemand for chips. Growth recorded in all regions, thehighest increase was in Asia.

Operating Income
The income from operations reached USD 111.6 million
or 19.2% of sales for 2022 from USD 100.4 million or
19.5% of sales for 2021. This increase was driven by thesubstantially higher volume and a tight cost control.

The General Vacuum market sales increased by
USD 18.6 million or 13.9%. In local currencies the
dynamic growth of the market was even higher. With thehighest share in Europe, the weakness of the Euro
had an unfavorable impact for the converted sales in
US Dolllar.

Financial Result
The financial result reached USD (4.5) million after
USD (0.8) million in 2021. This decrease is essentiallydriven by foreign currency losses.

Refrigeration, Air Con­ditioning & Automotive sales increased by 1.1% or USD 1.1 million to USD 100.9 million, which was mainly driven by a strong demand in Asia.
The main driver for the growth was the internationallyunchanged dynamic market for leak testing of lithium-ion
batteries and battery modules.

Income Taxes
Provision for income taxes was USD 18.4 million or
17.2% of earnings before taxes for 2022 compared with
USD 19.3 million or 19.4% of income before taxes for2021. The tax rate of 2022 decreased due to the mix
in the profit composition of our various international
entities.

Sales to the Security & Energy market achieved agrowth of 9.0% or USD 1.9 million, due to the increasing
deliveries of hapsite analyzers at the end of the year.

Net Income and Diluted Earnings per Share
Net income and diluted earnings per share were
USD 88.5 million and USD 36.22 per share for 2022,
as compared with USD 80.3 million and USD 32.87
per share for 2021. The increase of 10.2% in diluted
earnings per share is in line with the 10.2% increasein net income.

Gross Profit
Gross profit margin decreased from 47.9% in the previous year to 45.9% for 2022. This decrease was driven
by the bottlenecks in the procurement which led to increased material and logistics costs.

64

Financial Review(US Dollars in Millions)

Balance Sheet and Liquidity
Cash and cash equivalents at December 31, 2022 totaled
USD 45.9 million, which represents a decrease of
USD (19.7) million as compared to USD 65.6 million
at December 31, 2021. Cash flow from operations
totaled USD 46.2 million in 2022 as compared to
USD 85.1 million in 2021. The main reason for the lower operating cash flow is an increase in inventories
what serves the purpose to ensure an ongoing production.
Trade receivables increased by USD 14.4 million to
USD 96.5 million at December 31, 2022 as comparedwith USD 82.1 million at December 31, 2021. This
increase reflects a 4th quarter with the highest sales volume of all four quarters and in addition a 10% increasein sales versus the same quarter of the previous year.
Inventories increased by USD 46.2 million to
USD 135.3 million at December 31, 2022 as compared
to USD 89.1 million at December 31, 2021. The
increase in stock serve the purpose to ensure an ongoing production. Inventory turns improved and reached
2.8 in 2022 (2021: 3.2) using a 4-point average ofquarter-end inventory balances.
Property, Plant & Equipment increased by USD 18.9 million to USD 112.3 million at December 31, 2022 compared to USD 93.4 million at December 31, 2021. This
increase is driven by an expansion program in building
and equipment to increase the production capacity.
Short-term financial liabilities at December 31, 2022
are USD 43.4 million (December 31, 2021:
USD 10.8 million), reflecting a short-term loan of
USD 42,2 million in favor of the Landesbank BadenWürttemberg.
Long-term provision decreased to USD 4.9 million at
December 31, 2022 compared to USD 7.2 million at
December 31, 2021 mainly due the released provision
for the earn-out payment of the FPS acquisition transacted in 2018.

65

Consolidated Balance Sheet(US Dollars in Thousands, except share and per share amounts)

AssetsNote

Cash and cash equivalents
Trade accounts receivable
Inventories
Prepayments and accrued income
Other current assets
Total current assets

3
4Property, plant, and equipment
Intangible assets
Deferred tax assets
Financial assets
Total non-current assets

5
6

Total assets

December 31,
2022

December 31,
2021

45,89896,527
135,318
5,024
10,512
293,279

65,62882,09189,067
7,564
8,852
253,202112,321
6,070
15,1882,552
136,131

93,390
5,495
9,048
4,020
111,953

429,410

365,155

23,35343,374
24,635
16,961
14,915
18,825142,063

19,364
10,75529,473
10,64013,683
16,907
100,822

4,853
4,569
65
414
9,901

7,238
4,268
241
0
11,747

151,964

112,569

6,860
(631)
(738)
283,624(11,669)
277,446

6,860
0
(554)
251,360(5,080)252,586

429,410

365,155

Liabilities and Shareholders’ Equity
Trade accounts payable
Short-term financial liabilities
Short-term provisions
Income taxes payable
Accrued expenses and deferred income
Other current liabilities
Total current liabilities

78
9Long-term provisions
Deferred tax liabilities
Long-term financial liabilities
Long-term liabilities
Total non-current liabilities

8

Total liabilities
Common stock
Capital Reserves
Treasury shares
Retained earnings
Foreign currency translation
Total shareholders’ equity

10

Total liabilities and shareholders’ equity

66

Consolidated Statement of Income(US Dollars in Thousands, except share and per share amounts)

2022

2021

Net sales
Cost of sales
Gross profit

581,297(314,622)
266,675

515,777(268,783)
246,994

Research and development
Selling expense
General and administrative expense
Operating income(45,514)(28,746)(80,810)
111,605(47,033)(28,916)(70,604)
100,441(4,521)
107,084(813)
99,628(136)
106,948

0
99,628(18,421)88,527(19,317)80,311

36.22
0.00
36.22

32.87
0.00
32.87

Year ended December 31,

Note

Financial result
Ordinary result

13

Non-operating result
Earnings before income taxes (EBT)
Income taxes
Net income

14

Earnings per share:
Basic
Dilution
Diluted67

Consolidated Statement of Shareholders’ Equity(US Dollars in Thousands, except share and per share amounts)

Note

Balance at January 1, 2021
Net income
Foreign currency translation adjustments
Issuance of common stockfrom exercise of stock options
Acquisition of treasury shares
Stock-based compensation
Dividend
Adjustment of Goodwill
Balance at December 31, 2021

Capitalreserves

6,843—

Retainedearnings

Foreigncurrencytranslation

Total
shareholders’equity(1,382) 215,196

2,229

222,886(7,309)80,311(7,309)Treasury
Shares80,311
17

1,040
(275)
(765)

1,057
(1,703)2,531(1,703)2,256(42,259)(2,653)(5,080) 252,586

6,860

—

(41,494)(2,653)(554) 251,360

6,860

0

(554) 251,360(5,080) 252,586

88,52788,527(6,589)(3,307)
2,492(54,520)(1,743)(11,669) 277,446

12Balance at January 1, 2022
Net income
Foreign currency translation adjustments
Acquisition of treasury shares
Stock-based compensation
Dividend
Adjustment of Goodwill
Balance at December 31, 2022

Commonstock(6,589)

(631)
12

6,860

68

(631)

(3,307)
3,123(54,520)(1,743)(738) 283,624

Consolidated Statement of Cash Flow
(US Dollars in Thousands, except share and per share amounts)

2022

2021

88,52780,311

12,592
1,937
136

10,9181,492
0(17,159)(48,940)
1,156
5,045
(7,450)
6,304
3,072
1,013
46,233(20,771)(14,804)(7,525)
3,675
16,297
6,803
11,634(2,961)85,069(32,769)389(2,539)0(5,643)0
2(40,560)(22,434)
182(1,231)
1(5,252)
67(292)(28,959)0(54,520)(816)
106,252(73,973)(23,057)

1,057(42,259)554
56,365(63,995)(48,278)

Effect of exchange rate changes on cash and cash equivalents(2,346)(2,301)

Change in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period(19,730)
65,62845,898

5,531
60,09765,628Year ended December 31,

Note

Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation
Amortization
Result from disposal of fixed assets
Changes in operating assets and liabilities,
excluding effects from acquisition:
Trade accounts receivable
Inventories
Other assets
Trade accounts payable
Accrued liabilities and provisions*
Income taxes payable
Other liabilities
FX impact excluding cash
Net cash provided by operating activities

5
6

Cash flows from investing activities:
Purchase of property, plant and equipment
Disposal of property, plant and equipment
Purchase of intangible assets
Disposal of intangible assets
Acquisitions of businesses net of cash acquired
Liquidation of subsidiary
Loans granted
Net cash used in investing activities

5
5
6
6
17

Cash flows from financing activities:
Proceeds from exercise of stock options
Cash dividend paid
Purchase/disposal of treasury shares
Proceeds from borrowings
Repayments of borrowings
Net cash used in financing activities

11*Including deferred taxes

69

Notes to Consolidated Financial Statements(US Dollars in Thousands, except share and per share amounts)

1 Description of Business

2 Summary of Significant Accounting Policies

INFICON Holding AG (INFICON or the “Company”) is
domiciled in Bad Ragaz, Switzerland, as a corporation(Aktiengesellschaft) organized under the laws of­Switzerland.
The Company’s stock is traded on the SIX Swiss­E xchange in Switzerland. INFICON provides worldclass instruments for gas analysis, measurement ­and control, and our products are essential for gas
leak detection in air conditioning, refrigeration and­automotive manufacturing. They are vital to equipment
manufacturers and end-users in the complex fabrica­­­­­­­tionof semiconductors and thin film coatings for optics, flat
panel displays, solar cells and industrial vacuum
coating applications. Other users of vacuum based
processes include the life sciences, research, aerospace, packaging, heat treatment, laser cutting andmany other industrial processes. The Company also
leverages its expertise in vacuum technology to provide
unique, toxic chemical analysis products for emergency
response, security, and environmental monitoring.

Basis of Preparation
The consolidated financial statements give a trueand fair view of the financial position, results of operations and cash flows of the Company. They have been
­prepared in accordance with the complete set of SwissGAAP Accounting and Reporting Recommendations(Swiss GAAP FER) and are based on the subsidiaries’
annual financial statements at December, 31, which
are prepared using uniform classification and accounting
policies. The consolidated financial statements areprepared under the going concern assumption, basedon the historical cost principle with the exception ofcertain items such as derivative financial instruments
and short-term investments, which are carried on
the balance sheet at their fair value. The consolidated­financial statements comply with the Listing Rulesof the SIX Swiss Exchange and the provisions of Swiss
Corporation Law. The Board of Directors of INFICON
Holding AG approved the consolidated financial­statements on February 28, 2023 for submission tothe ­Annual General Meeting on March 30, 2023.

INFICON has best in class manufacturing facilities in
Europe, the United States and China, as well as
subsidiaries in China, Denmark, Finland, France, Germany,
India, I­taly, Japan, Korea, Liechtenstein, Singapore,
Sweden, Switzerland, Taiwan, Mexico (established
April 2022), the United Kingdom and the ­United States.

Consolidation
These consolidated financial statements include­INFICON Holding AG and all companies that INFICON
controls. Control exists if INFICON (the “Group”)
holds directly or indirectly more than half of the voting
rights, or has other means of controlling the company.
The financial statements of subsidiaries are preparedusing uniform classification and accounting policies.
The reporting date for INFICON Holding AG, all subsidiaries and the consolidated financial statements is­December 31.

70

Notes to Consolidated Financial Statements(US Dollars in Thousands, except share and per share amounts)

Significant Accounting Policies and Estimates
The preparation of financial statements in conformity
with Swiss GAAP FER requires management to makeestimates and assumptions that affect the reported
and disclosed amounts of (contingent) assets and liabilities at the dates of the financial statements and the­reported amounts of revenues and expenses. Management bases its estimates and judgments on historicalexperience and on various other factors believed to bereasonable under the circumstances that form the­basis for making judgments about the carrying valuesof assets and liabilities that are not readily apparent
from other sources. Actual results may differ from theseestimates under different assumptions or conditions.
The main estimates include provisions, allowances for
trade accounts receivables and inventories.

The full consolidation method is applied to all subsid­
iaries over which control exists. Their assets, liabilities,
income and expenses are incorporated in full. The­purchase method of consolidation is used to accountfor the acquisition of subsidiaries. Under this method,
the carrying amount of the investment in a subsidiary
is offset against the Group’s share of the fair value ofthe subsidiary’s net assets. Intercompany transactions
and balances are eliminated. Unrealized intercompany
profits on goods and services supplied within the Groupbut not yet sold to third parties are eliminated on
consolidation.
Companies acquired or established or those in which
the Group increases its interest and thereby obtains
control during the year are consolidated from the dateof formation or date on which control commences.
Companies are deconsolidated from the date that ­control
effectively ceases upon disposal or a reduction inownership interest.

Cash and Cash Equivalents and Short-Term Investments
The Company considers all highly-liquid investmentswith an original maturity of three months or less as ofbalance sheet date to be cash equivalents. The Com­pany classifies investments with an original maturity ofmore than three months as of balance sheet date asshort-term investments. Short-term investments consist of certificates of deposit, time deposits, or money
market mutual funds.

The following companies are included in these
consolidated financial statements:
Company
INFICON Holding AG
INFICON (Guangzhou)
Instruments Co., Ltd.
INFICON Instruments
Shanghai Co. Ltd.
INFICON GmbHINFICON Aaland Ab
INFICON S.A.R.L.
INFICON Ltd.
INFICON S.r.l.
INFICON Co., Ltd.
INFICON Ltd.
INFICON AG
INFICON AB
INFICON Pte. Ltd.
INFICON Ltd.
INFICON Ltd.
INFICON Inc.
INFICON EDC Inc.
INFICON InstruTech
LLC.
INFICON ApS
IFCN.SW*

Domicile
Bad Ragaz (CH)

Participation
rate

Guangzhou (CN)100%

Shanghai (CN)100%

Cologne (DE)Mariehamn (FI)Courtaboeuf (FR)Hong Kong (HK)
Bozen (IT)
Kawasaki-shi (JP)Bungdang (KR)Balzers (LI)
Linköping (SE)Singapore (SG)
Chubei City (TW)Blackburn (UK)
Syracuse, NY (US)Overland Park, KS
(US)

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

Longmont, CO (US)100%

Kopenhagen (DK)
Corregidora Qro.,
Mexico100%

Trade Accounts Receivable
Trade accounts receivable and other current receivables
are recognized at nominal value less allowance forany impairment. Doubtful receivables are provided forby way of specific allowances for known or alleged
specific risks. Furthermore, an additional lump-sum
allowance is set-up based on accounts receivableaging and taking into account the actual losses expectedbased on past experience.

100%

100%

* established in 2022	

71

Notes to Consolidated Financial Statements(US Dollars in Thousands, except share and per share amounts)

Inventories
Inventories are stated at the lower of cost and net­realizable value. Purchasing discounts received areoffset against the production cost of inventories.
­Production cost comprises all direct material and manufacturing costs as well as those overheads thathave been incurred in bringing the inventories to theirpresent location and condition. Cost is determinedby the moving average method. Appropriate allowances
are made for slow-moving inventories and obsolete
inventories are fully written off. If the net realizable valueof inventories is lower than their purchase price or­production cost, then their carrying amount is written
down as necessary.

Intangible Assets
Acquired intangible assets are recognized in the­balance sheet if they are to bring measurable benefits
to the company over several years. They are valued
at historical cost less straight-line amortization over theestimated useful lives of 3 to 10 years. Customer­relationships are not considered as Intangible Assets.
Goodwill
Goodwill arising on business combinations represents
the excess of the cost of acquisition over the Group’s
interest in the fair value of the recognized assets andliabilities at the date of acquisition. Goodwill from­acquisitions is fully offset against equity at the date ofacquisition. The impact of the theoretical capitalization
and amortization of goodwill is disclosed in the notes
to the consolidated financial statements. For the deter­
mination of goodwill from acquisitions, parts of the­purchase price contingent on future performance are
estimated at the date of acquisition. Any changes incontingent consideration are offset against goodwill
in equity.

Property, Plant, and Equipment
Property, plant, and equipment are stated at cost, lessaccumulated linear depreciation and less any impairment loss. Expenditures for major renewals and improvements that extend the useful lives of property, plantand equipment are capitalized. Expenditures for­maintenance and repairs are charged to expense as
incurred. When assets are sold or otherwise disposedof, the cost and related accumulated depreciation are
eliminated from the accounts and any resulting gain orloss is recognized in earnings. The Group does notdepreciate land.

Impairment of Non-current Assets and Goodwill
At every balance sheet date an assessment is madefor non-current assets (in particular property, plant,
equipment, intangible assets, financial assets as wellas goodwill offset against equity) whether indicatorsfor impairment exist. If indicators for a continuous impairment exist, the recoverable amount of the asset
is determined. An asset’s recoverable amount is thehigher of its fair value less costs to sell and its value
in use. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the smallest cashgenerating unit to which the asset belongs. When the
carrying amount of an asset exceeds its recoverable
amount, an impairment loss is recognized separately
in the income statement. As goodwill is fully offset
against equity at the date of acquisition, impairmentof goodwill will not affect income, but be disclosed
in the notes to the consolidated financial statements.

The estimated useful lives and depreciation periods
in years are as follows:
Category
Buildings
Building and land improvements
Machinery and equipment
VehiclesContent, furniture and fixtures
Business machines
Information technology (hardware)
Demonstration equipment

Years
20–30
10–20
5–10
5–10
5–10
5–10
3–5
2

72

Notes to Consolidated Financial Statements(US Dollars in Thousands, except share and per share amounts)

Pension Benefits
Pension benefit assets and obligations are recognizedin the consolidated financial statements according tolegal regulations of the respective countries. The actual
economic impact of pension plans is calculated ateach balance sheet date. A pension asset is recorded
when an economic benefit exists, meaning that sucheconomic benefit will be used to reduce future pension
contributions by the Company. A pension liability isrecognized when an economic obligation exists, meaning
if the requirements to record a provision are met.

Share-based Plan
In 2001, a stock option plan for Directors, as well as forGroup Management and key employees was put
in place. In 2014 the Directors’ Stock Option Plan from2001 was terminated and a share program was introduced. The shares are subject to a 3-year mandatory
holding period.
In 2015 the Group Management and Key Employee
Stock Option Plan from 2001 was terminated anda share program was introduced. Within this plan, 50%of the shares are allotted on the grant date and are
subject to a four-year blocking period. The remaining
50% will be allotted over the next four years – one
fourth each year – and will not be subject to any blocking period.

Trade Payables and Other Payables
Trade accounts payable and Other liabilities are recognized at par value.
Provisions
Provisions are recognized when the Group has a present
obligation as a result of a past event, it is probable thatan outflow of resources will be required to settle theobligation and a reliable estimate of the amount canbe made. A provision for the expected costs associatedwith restructuring is recognized when a detailed
restructuring plan has been developed and the measures
have been approved and communi­cated before thebalance sheet date.

Share-based compensation is stated at fair value
at the grant date and recognized in personnel expensein the period in which the service is performed.
Income Tax Expense
Current income tax is calculated on taxable profits forthe year and recognized on an accrual basis. Deferredincome tax is provided, using the liability method, on
all temporary differences and recognized as tax liabilities
or assets. Temporary differences arise between thetax bases of assets and liabilities and their carrying
amounts in the consolidated financial statements.
The same method is also used to provide for differences
arising on acquisitions between the fair value andtax base of the assets acquired. Deferred tax assets
and liabilities are offset when the Group has a legally
enforceable right and intends to settle its current tax
assets and liabilities on a net basis. Deferred tax is
calculated using local tax rates that have been enacted
by the balance sheet date. Tax losses carried forward
and tax credits are recognized as deferred tax assets tothe extent that it is probable that future taxable profits
will be available against which they can be utilized.

Revenue Recognition
Revenues primarily relate to the sale of instruments forgas analysis, measurement and control and is recognized when risks and rewards as well as control has
been passed to the acquirer and income and related
expense can be determined reliably. This generally­coincides with the delivery of the instruments.
Research and Development
Research and development costs are expensed as­incurred.
Shipping and Handling Costs
Revenue and costs associated with shipping products
to customers are included in sales or cost of sales.

73Notes to Consolidated Financial Statements(US Dollars in Thousands, except share and per share amounts)

5 Property, Plant, and Equipment

Foreign Currency Translation
The functional currency of the Company’s foreign­subsidiaries is the applicable local currency. For thosesubsidiaries, assets and liabilities are translated to
US Dollars at year-end exchange rates. Income andexpense accounts are translated at the averagemonthly exchange rates in effect during the year. The
effects of foreign currency translation adjustments
are taken to retained earnings (currency translation difference) and not recognized in the income statement.

Period-end rates

Total property, plant,
and equipment

Other tangible
fixed assets

Demonstrationequipments

Leaseholdimprovements
Prepayments andtangible fixed assets
under construction

Machinery andequipment

At costAt January 1, 2022

The following foreign exchange rates versus the US
Dollar have been applied when translating the financial
statements of the Company’s major subsidiaries:
Currency

Buildings

Property, plant,
and equipment 2022

Land

The components of property, plant, and equipment
consist of the following at December 31:

Average rates

2,489 49,540 88,366 15,821 19,595

Additions

—

1,914

5,319

9,341 14,486

Disposals——(1,270)(412)

Reclassifications

—

382

9,501

5,450 (16,126)(875) (1,483)

201

9,659 14,913 200,383
754

1,671 33,485(0) (1,067)(531) (3,280)

Exchange Differences

(129)

(357)

At December 31, 2022

2,360 50,961 100,433 30,401 17,598

(26)

819

(478)

(913) (4,034)—

8,842 15,959 226,554

Accumulated depreciations:

1

2022

2021

2022

2021

Swiss Franc

USD

1.0832

1.09371.04841.0940Euro

USD

1.0666

1.13341.05381.1833

Japanese Yen

USD

0.00760.00870.00770.0091

Hong Kong Dollar

USD

0.12830.12820.12770.1286

Korean Won

USD

0.00080.00080.00080.0009At January 1, 2022

— 20,527 54,216 12,824—

Depreciation

—

1,730

7,777

950

—

8,718 10,708 106,993
771

1,364 12,592

Disposals

—

—

(855)

(408)

—

(1,048)(523) (2,834)

Reclassifications

—

—

32

—

—

(32)

Exchange Differences

—

(252)

(922)

(233)

—

(433)

At December 31, 2022

— 22,005 60,248 13,133—

7,976 10,871 114,233——(678) (2,518)

Net book values:
4,205 93,390
5,088 112,321

2022
98,977(2,450)96,5272021
83,904(1,813)82,091

Property, plant,
and equipment 2021
At costAt January 1, 2021

4 Inventories

Raw material
Work-in-process
Finished goods
Advance Payments to suppliers
Inventory Valuation Adjustment
Balance at December 31,(10,649) (10,338)
135,318 89,067

3,093 47,662 81,395 12,792 12,201

Additions—532

Disposals—(11) (3,878)
2,421

8,061

9,207 15,948 182,298

782 16,433

1,087

(58)

(39)

(356)
49

1,896 28,791(312) (4,654)

Reclassifications

(422)

5,078

2,798

(8,400)(1,524)

Exchange Differences(182) (1,064) (2,290)

(493)

(600)

(328) (1,095) (6,052)—

At December 31, 2021

2,489 49,540 88,366 15,821 19,595

9,659 14,913 200,383

Accumulated depreciations:

Inventories and related reserves consist of the following
at December 31:
2022
87,478
6,052
51,113
1,324

Buildings

Trade accounts receivable, gross
Bad debt allowance
Total trade accounts receivable, net

Land

Trade accounts receivable and related bad debt
allowance are recorded as follows as at December 31:

Total property, plant,
and equipment

941
866

Other tangible
fixed assets

2,997 19,595

Demonstrationequipments

2,489 29,013 34,150

2,360 28,956 40,185 17,268 17,598

Leaseholdimprovements
Prepayments andtangible fixed assets
under construction

At January 1, 2022
At December 31, 2022

Machinery andequipment

3 Trade Accounts Receivable

2021
54,651
5,971
37,435
1,348

At January 1, 2021

392 18,807 53,240

Depreciation—

Disposals—

Reclassifications(392)

11,287—

8,533

11,840 104,099

6,712

494

—

800

1,206 10,918(11) (3,759)

(56)

—

(341)

(343)

1,502

—

30

(367) (1,634)

1,706
392

(305) (4,472)(1,189)—Exchange Differences

—

(403)

—

(304)

(844) (3,552)

At December 31, 2021

— 20,527 54,216 12,824—

8,718 10,708 106,993

Net book values:

74

At January 1, 2021

2,701 28,855 28,155

1,505 12,201

674

4,108 78,199

At December 31, 2021

2,489 29,013 34,150

2,997 19,595

941

4,205 93,390

Notes to Consolidated Financial Statements(US Dollars in Thousands, except share and per share amounts)

Total

Total

3,817

624 23,002

9,268

36,711

Addition

284

3,077 18,522(492) (22,881) (7,193) (30,692)

At cost—

3,370

25,533

2,335

—

49

2,539

Disposals

—

(87)

—

—

(87)

Reclassifications

—

260

1,665

(1,925)—

Exchange Differences

(102)

(91)

(13)

(46)

(252)

At December 31, 2022

12,133

12,500

1,652

1,448

27,733

Provisions 2022
At January 1, 2022

Accumulated amortization
At January 1, 2022

9,009

8,688

—

2,341

20,038

Amortization

527

1,244

151

15

1,937

Disposals

—

(87)

—

—

(87)

Reclassifications

—

—

993

(993)

—

Exchange Differences

(96)

(115)

(3)

(11)

(225)

At December 31, 2022

9,440

9,730

1,141

1,352

21,663

At January 1, 2022

3,071

1,395

—

1,029

5,495

At December 31, 2022

2,693

2,770

511

96

6,070

Trademarks
Software & Patents

Other

Total

Usage

(126)
(67)

—

(1,302)

FX difference

(97)

(121)

(407)

(51)

(676)

Reclassification

—

—

966

(966)

—

At December 31, 2022

3,811

Short term

3,505Long term

306

Technology

At January 1, 2021

10,682

10,024—

5,019

25,725Additions

172

972

—

186

1,330

Disposals

—

(755)

—

(50)

(805)

Reclassifications

1,500

224

—

(1,724)—

Exchange Differences

(274)

(382)

—

(61)

(717)

At December 31, 2021

12,08010,083—

3,370

25,533— 17,900

3,230 24,635

3,088

—

1,569

11,415———Addition

976

333 24,085

Usage

(130)

At January 1, 2021

At cost4,689 29,488

3,044

Provisions 2021

(69) (1,438)

3,088 17,900

Decrease in scope of
consolidation

Net book values

Intangible Assets 2021

3,700 25,583

Release of unused amounts

Bonus &
Commissions

10,083155

Pension

12,080Additions

Warranty

At January 1, 2022

1,459

4,853

Total

Other

Other

Trademarks& Patents

Other

SoftwareBonus &
Commissions

Technology

PensionIntangible assets 2022

8 Provisions

Warranty

6 Intangible Assets

7,969 23,997
(3)

(3)

7,339 32,733(236) (10,598) (5,800) (16,764)

Release of unused amounts—(791) (1,568)(21) (2,380)

FX difference

(73)

(251)

(332)

(216)

(872)
36,711At December 31, 2021

3,817

624 23,002

9,268

Short term

3,500

313 23,002

2,658 29,473

Long term

317

311

6,610

—

7,238

Accumulated amortization
At January 1, 2021

8,403

8,792

—

2,804

19,999Amortization

490

796

—

206

1,492

Disposals

—

(754)

—

(50)

(804)

Reclassifications

369

188

—

(558)

(1)

Exchange Differences

(253)

(334)

—

(61)

(648)

At December 31, 2021

9,009

8,688

—

2,341

20,038At January 1, 2021

2,279

1,232

—

2,215

5,726

At December 31, 2021

3,071

1,395

—

1,029

5,495

Discounting
There are no material discounting effects for the longterm provisions.
Warranty
INFICON gives warranties in connection with the­products and services it provides. These are based on
local legislation or contractual arrangements.

Net book values

The provision is calculated from past experience. The
current provision for liability claims is based on actual
claims reported, which are generally settled within
one year. The long-term provision is based on historical­experience for warranties with more than one year
­remaining warranty period.

7 Short-term financial liabilities
Total short-term financial liabilities at December 31, 2022
amount to USD 43,374 . Thereof of USD 42,244 in favor of the Landesbank Baden-Württemberg at December 31, 2022 with an interest rate of 1.46% p.a. and
USD 1,130 is owed to a customer for financing manufacturing equipment at no interest.
75

Notes to Consolidated Financial Statements(US Dollars in Thousands, except share and per share amounts)

9 Accrued Expenses and Deferred Incomea) Treasury Shares 2022
Price per share in CHF
Number oftreasuryshares

The components of accrued liabilities are as follows
at December 31:
Salaries, wages and related costs
Deferred revenue
Professional fees
Other
Balance at December 31,

2022
5,011
2,666
710
6,528
14,915

Balance as of January 1

2021
5,009
1,361
859
6,454
13,68310 Shareholders’ Equity
As of December 31, 2022, shareholders’ equity consistsof issued and outstanding bearer shares 2,445,161(2021: 2,445,161) with a par value of CHF 5 (2021:
CHF 5). Each share entitles the registered owner to one
vote at the General Meeting of Shareholders, as well
as a share of dividends or distribution from capital contribution reserve, if any, declared by the Company andproceeds from liquidation, correspond­­ing to its nominal
value as a percentage of the total nominal value of
issued share capital.

HighestLowestVolumeweighted
average

520

Purchases January 18, 2022

283

1,174.00

1,164.00

1,170.39

Purchases January 19, 2022

217

1,188.00

1,158.00

1,173.94

Purchases January 24, 2022

390

1,078.00

1,052.00

1,062.24

Purchases January 25, 2022

110

1,134.00

1,088.00

1,104.47

Purchases February 14, 2022

250

1,026.00

1,012.00

1,020.18

Purchases February 15, 2022

250

1,062.00

1,026.00

1,048.45

Purchases April 27, 2022

316

892.00878.00881.06

Purchases April 28, 2022

484

919.00880.00892.45Purchases September 19, 2022

99

656.00643.00648.91

Purchases September 20, 2022

268

668.00658.00662.97Purchases September 21, 2022

133

677.00663.00671.26

Purchases December 12, 2022

230

838.00813.00823.67Purchases December 13, 2022

270

857.00831.00840.06

Allocation to Members of theBoard of Directors(232)

Allocation to Group Management
and Key Employees
Balance as of December 31(2,733)855b) Treasury Shares 2021
Price per share in CHF
Number oftreasurysharesBalance as of January 1

Under the Swiss Code of Obligations, the shareholders
may decide on an increase of the share capital in a
specified aggregate par value up to 50% of the existing
share capital, in the form of authorized capital to
be used at the discretion of the Board of Directors. The
Board of Directors is currently not authorized to issue
new registered shares. The General Meeting of Share­
holders approved conditional share capital in theamount of 260,000 shares in 2012, which shall be issued­upon the exercise of option rights granted pursuant to
the Employee Incentive Plans to employees and members of the Board of Directors of the Company.
The Board of Directors will regulate the details of theissuances.

HighestLowestVolumeweighted
average

1,917

Purchases March 17, 2021

500

994.00981.00991.33Purchases August 13, 2021

200

1,072.00

1,056.00

1,063.41

Purchases August 16, 2021

210

1,064.00

1,054.00

1,058.50

Purchases August 17, 2021

90

1,062.00

1,044.00

1,052.84

Purchases September 30, 2021

500

1,110.00

1,092.00

1,096.97

Allocation to Members of theBoard of Directors(222)

Allocation to Group Management
and Key Employees
Balance as of December 31(2,675)520

At December 31, 2022, the acquisition costs for a numberof 3,300 shares purchased during the year amounted to
USD 3,249 compared with USD 1,703 at December 31,
2021, for a number of 1,500 purchased shares in 2021.
The statutory or legal reserves that may not be
distributed, amount to CHF 2,455 at December 31,
2022 (December 31, 2021: CHF 2,455 ).

As of December 31, 2022 the remaining available
balance of conditional share capital amounts to 9,694
shares (2021: 9,694 shares) of each CHF 5.

76

Notes to Consolidated Financial Statements(US Dollars in Thousands, except share and per share amounts)

11 Share-based Plans

12 Goodwill

Share Plans
In 2014 a share program for the Board of Directors
has been introduced. The shares are subject to a 3-year
mandatory holding period.

Goodwill from acquisitions is fully offset against equity
at the date of acquisition. The impact of the theoretical
capitalization and amortization of goodwill is disclosed
below:In 2015 a share program for Management & Key­Employees has been introduced. It is intended that theplan will provide an additional incentive for key employees to maintain continued employment, contributeto the future success and prosperity, and enhancethe value of the Company. Within this plan, 50% of theshares are allotted on the grant date and are subject
to a four year blocking period. The remaining 50% willbe allotted over the next four years – one fourth eachyear – and will not be subject to any blocking period.
The relevant share price for allocation purposes is theaverage price of the shares as of the fifth trading day
after the Ordinary Annual General Meeting.

Theoretical movement schedule for goodwill:
2022

2021

At costAt January 1,

31,59828,945Additions from acquisitions of subsidiaries

1,100

1,990

Subsequent Purchase Price Adjustments

643

663

Exchange Differences

39—

33,38031,598At December 31,
Accumulated amortization
At January 1,

23,86019,414

Amortization expense

4,051

4,446

Exchange Differences——

27,911

23,860At January 1,

7,738

9,531

At December 31,

5,469

7,738

At December 31,
Theoretical net book values

The Management & Key Employee Stock Option Plan
has expired May 7, 2021, all exercisable options havebeen exercised or have expired.

Goodwill is theoretically amortized on a straight-line
basis usually over 5 years.

The impact of all share-based plans on the income
statement as per December 31, 2022 amounts to
USD 2,573 (2021: USD 2,012 ).

Impact on income statement:
Operating income according to income statement

2022

2021

111,605

100,441(4,051)(4,446)

Theoretical operating income incl. amortizationof goodwill

107,554

95,994

Net income according to income statement

88,52780,311

Amortization of goodwill(4,051)(4,446)

Theoretical net income incl. amortization of goodwill

84,47675,864

Amortization of goodwill

Impact on balance sheet:
2022

2021

277,446

252,586

Equity as % of total assets

64.6%

69.2%

Theoretical capitalization of goodwill (net book value)

5,468

7,737

282,914260,323

65.9%

71.3%

Equity according to balance sheet

Theoretical equity incl. net book value of goodwill
Theoretical equity incl. net book value of goodwill as %of total assets incl. net book value of goodwill

No indication for impairment of goodwill has been
­identified.

77

Notes to Consolidated Financial Statements(US Dollars in Thousands, except share and per share amounts)

13 Financial Result

15 Earnings per Share

The financial result consists of the following:

The Company computes basic earnings per share,
which is based on the weighted average numberof common shares outstanding, and diluted earnings
per share, which is based on the weighted average
number of common shares outstanding and all dilutive
common equivalent shares outstanding. The dilutive
effect of options is determined under the treasury stock
method using the average market price for the period.

2022(3,681)(840)(4,521)

FX Gain/Loss
Interest Income/Expense
Total financial result

2021(1,092)279(813)

14 Income Taxes

The following table sets forth the computation of basic
and diluted earnings per share for the years ended­December 31:

Tax expense consists of the following:
Current tax expense
Deferred tax expense
Total income taxes

2022
19,937(1,516)
18,4212021
20,086(769)
19,317

Numerator:
Net income
Denominator:
Weighted average shares
outstanding*Effect of dilutive stock options
Denominator for diluted
earnings per share

As of December 31, 2022, the group average tax rate
for calculating deferred taxes was 17.2% (2021: 19.4%).
The tax rate of 2022 decreased due to the mix in the
profit composition of our various international entities.
The capitalization of the effects from tax loss carryforwards is reassessed annually and based on current
assumptions and estimates by management. The total
amount of tax loss carryforwards that can be used
is USD 2,135 (2021: USD 2,433 ). Thereof USD 0 canbe used undefinitely. No deferred tax assets wererecognised for those tax loss carryforwards.

Earnings per share:
Basic
Dilution
Diluted

2022

2021

88,52780,311

2,444,306 2,443,561
0

2,444,306 2,443,561

36.22
0.00
36.22

*	
Weighted average shares outstanding for 2022 excluding treasury shares

The entitlement for deferred income taxes on tax
losses carried forward not yet used was USD 375 at­December 31, 2022, as compared with USD 99 at­December 31, 2021.

78

0

32.87
0.00
32.87

Notes to Consolidated Financial Statements(US Dollars in Thousands, except share and per share amounts)

16 Employee Benefit Plans

The following table summarizes the fair values of theassets acquired at the acquisition date.

INFICON employees in Liechtenstein, Germany andJapan participate in contributory and non-contributory
defined benefit plans. Benefits under the defined
benefit plans are generally based on years of service
and average pay. The company funds the plans in accordance with local regulations in the specified countries.

As of October 1
Equipment
Intangible assets
Assets acquired
Goodwill
Total
Accrued contingent consideration
Cash used for acquisition

The economical benefits and economical obligationsof the pension plans and the relating pension benefit
expenses are summarized in the following table:

2022

2022

2022

2021

Pension institutions
with surplus

1,446

—

—

—

4,652

4,652

3,108

Pension institutions
with deficit

—

—

—

—

—

—

—

—

(1,138)(1,203)

(88)

(108)

(196)

(136)

1,446

(1,138)(1,203)

(88)

4,544

4,456

2,972

Total

Pension costs within
personnel expense

Contributions concerning
the business period

2021

Group’s economic share2022

Surplus / deficit

Change from prior period
recognized in the current
result of the period

In 2022 the last earn-out payment of
USD 4,943 (2021: USD 3,063) was made. The final payment exceeded the existing contingent consideration of
USD 4,300 as of December 31, by USD 643.

2022

Pension institutions
without own assets

2018
5
2,075
2,080
12,22014,300(9,300)5,000

Fil-Tec
On April 30, 2021, the Company acquired assets andkey personnel associated with Fil-Tech, Inc. and theirsubsidiary, Cold Springs R&D, Inc. The aquired company designs and manufactures Quartz Crystal Microbalance (QCM) sensors for display, optical coating general
vacuum, and life science markets. The acquisition of
Fil-Tech is the latest step for INFICON to build out the
global leadership position as provider of the mostadvanced and highest quality QCM sensors for display
and optical coating manufactures.

17 Acquisitions
Final Phase Systems
On October 1, 2018, the Company acquired part of theassets of Final Phase Systems LLC a developer ofcomprehensive Industrial Engineering Software for thesemiconductor manufacturing industry. The acquisitionof FPS is the latest step in INFICON’s vision to provide
the semiconductor and display manufacturing industries with the most advanced factory and process control
tools available.

The purchase price was USD 2,189 at closing. The following table summarizes the fair values of the assets
acquired at the acquisition date.
As of May 1
Inventory
Equipment
Intangible assets
Assets acquired
Goodwill
Total
Cash used for acquisition

The purchase price was USD 5,000 at closing. Additionally, there is an earn-out to be paid, based on adefined sales performance over a three-year period.
The Company has performed a fair value calculation
which resulted in USD 9,300 as contingent consideration
and was recognised as long-term provision.

79

2021
39
60
100
199
1,990
2,189
2,189

Notes to Consolidated Financial Statements(US Dollars in Thousands, except share and per share amounts)

Sales Distribution partnership with Meisa –Montjaes Electromecánicos e Ingenieria SA de CV.

The Company leases some of its facilities and machinery and equipment under operating leases, expiringin years 2023 through 2035. Generally, the facility leases
require the Company to pay maintenance, insurance
and real estate taxes.

On June 30, 2022, the company acquired assets of adisribution partnership with Meisa – Montjaes Electromecánicos e Ingenieria SA de CV.

Purchase obligations include amounts commited­under legally enforceable contracts or purchase orders
for goods or services with defined terms as to price,
quantity, delivery and termination liability.

The purchase price was USD 1,100. The aquired assets comprise the customer list, which is fully reflectedin the goodwill recognised within equity.
The following table summarizes the fair values of theassets acquired at the acquisition date.
As of June 1
Assets acquired
Goodwill
Total
Cash used for acquisition

The Group has a number of risks arising in the ordinary
course of business from contingent or probable lia­
bilities in connection with litigation and outstanding tax
assessments.

2022
—
1,100
1,100
1,100

Provisions have been recognized to the extent thatthe outcome of such matters can be reliably estimated.
No provisions have been made where the outcome
is uncertain or the risk is not quantifiable.
At year-end 2022, no guarantees in favor of third parties
existed. The Group has not given any other guarantees in respect of its business relationships with third
parties. There are no subordination agreements withthird parties.

USD 700 of the total purchase price of USD 1,100 was
paid in 2022. The residual amount of USD 400 will
be paid 24 months after contract signing, consequently
the outstanding payment is recognised as long-term
liability as of December 31, 2022.

18 Commitments and Contingencies

INFICON Holding AG granted a guarantee in favor of
an affiliated company to cover a credit facility with abank in Europe. One of the credit facility is drawn.

A summary of contractual commitments and contingencies is as follows:
At December 31, 2022

Operating
LeasesPurchase
Commitments

Total

2023
2024
2025
2026
2027
Thereafter
Total

7,481
5,951
5,009
4,529
3,048
14,60040,61819,993
2,207
520
—
3
—
22,72327,474
8,158
5,529
4,529
3,051
14,60063,341At December 31, 2021

Operating
LeasesPurchase
Commitments

Total

2022
2023
2024
2025
2026
Thereafter
Total

6,864
5,428
4,962
4,602
3,159
16,71041,725

6,062
5,751
72
—
—
—
11,885

12,926
11,179
5,034
4,602
3,159
16,71053,61080Notes to Consolidated Financial Statements(US Dollars in Thousands, except share and per share amounts)

19 Business Segments

21 Additional Information Required by
Swiss Law and Swiss GAAP FER

The Company is a global supplier of instrumentation
for gas analysis, measurement and control. The Boardof Directors is responsible for the ultimate direction
and supervision of INFICON Holding AG and delegates
the day to day management to Group Management.
In 2013, the Board of Directors decided to condense themanagement of the Company to only comprising the
CEO and the CFO as this best reflects the operational
management of INFICON.

As required by article 959 of the Swiss Code of­Obligations as well as by Swiss GAAP FER 3.10 thefollowing supplementary information is disclosed:
Total personnel costs

2022
2021
170,058 161,052

Compensations Disclosure
Please refer to the Compensation Report for disclosurespertaining to compensations to the Board of Directors andGroup Management.

Group Management steers the business globally and theallocation of resources, assessment of performance andthe respective reporting is made for the Group as a whole.

Shares and Share Options owned by Members of theBoard of Directors and Group Management
The number of shares and options owned by the
Board of Directors and Group Management for theyears e­ nded December 31:

Although the Company discloses net sales into various
end markets, the Company uses a key accountconcept and thus focuses on customers, regardlessof products, technologies or regions.
Since the Company operates in one global segment,
all information required by FER31 can be found in the
consolidated financial statements.

20 Related Party Transaction
In 2022, Corisol Holding AG, a company owned bymembers of the Frey family, including Vanessa Frey,board member of INFICON Holding AG granted ashort-term loan of USD 54,061 (2021: USD 46,466
granted by the related party KWE Beteiligungen AG),to INFICON Holding AG. The loan was granted in
CHF with CHF 50,000. The agreed interest was 0.05%.
The temporary loan was repaid completely as of December 31, 2022.

2022

2021

Board of Directors:
Dr. Beat E. Lüthi
Dr. Richard Fischer
Vanessa Frey *Beat Siegrist
Dr. Reto Suter
Total Board of Directors

1,554
26,239173
15,69482
43,742

1,488
26,190140
15,65240
43,510Group Management
Lukas Winkler, President & CEO
Matthias Tröndle, Group CFO
Total Group Management

4,396
657
5,053

3,755
383
4,138

* 	Vanessa Frey as part of the Frey family owns through KWE Beteiligungen AG 19.6%(2021: 19.5%) in INFICON Holding AG.

22 Subsequent Events
The Company has evaluated subsequent events for thewhole Group (including Holding AG and all subsidiaries)
through February 28, 2023, which represents the datewhen the consolidated financial statements wereavailable to be issued.

81Statutory Auditor's Report
To the General Meeting of INFICON Holding AG, Bad Ragaz

Report on the Audit of the Consolidated Financial Statements
OpinionWe have audited the consolidated financial statements of INFICON Holding AG and its subsidiaries (the Group),
which comprise the consolidated balance sheet as at 31 December 2022 and the consolidated statement of income, consolidated statement of shareholders’ equity and consolidated statement of cash flow for the year thenended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the consolidated financial statements (pages 66 to 81) give a true and fair view of the consolidated
financial position of the Group as at 31 December 2022, and its consolidated results of operations and its consolidated cash flow for the year then ended in accordance with Swiss GAAP FER and comply with Swiss law.
Basis for Opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the “Auditor’s Responsibilities for the Auditof the Consolidated Financial Statements” section of our report. We are independent of the Group in accordancewith the provisions of Swiss law, together with the requirements of the Swiss audit profession and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
REVENUE RECOGNITION

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the consolidated financial statements of the current period. These matters were addressed in the context of ouraudit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

KPMG AG
Zurich, 28 February 2023

82

REVENUE RECOGNITION
Key Audit Matter

Our response

Revenues are an important metric considered by external and internal stakeholders. Revenues recognized forthe year ended 31 December 2022 amounted to USD
581.3 million and primarily related to the sale of instruments for gas analysis, measurement and control.

We performed testing of the key controls around revenue recognition, which included performing
walkthroughs and testing the operating effectiveness ofinternal controls.

The Group recognizes revenues related to the sale of
instruments when risks, rewards and control are transferred to the counterparty. In general, contractual agreements with customers define when risks and rewards
are transferred. There is a risk that revenue may be recognized in the wrong accounting period.
There is an additional risk that revenues may be deliberately overstated as a result of management override resulting from the pressure management may feel toachieve planned results. This could for example occur
by manipulating inputs in the Group’s accounting system.

Among others, our substantive procedures included detailed cut off testing of revenue transactions to eitherside of the balance sheet date with reference to shipping documentation. Utilizing audit software tools, we investigated differences in prices and quantity between
the purchase order, shipping documentation and invoice.
In addition to the procedures described above, we further addressed the risk of management override by utilizing our audit software tools to identify high-risk journal
entries that were based on specific characteristic surrounding the risk of an overstatement of revenues.

For further information on revenue recognition refer to the following:— Note 2 “Summary of Significant Accounting Policies” to the consolidated financial statements

Other Information
The Board of Directors is responsible for the other information. The other information comprises the information
included in the annual report, but does not include the consolidated financial statements, the stand-alone financial
statements of the company, the compensation report and our auditor’s reports thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Board of Directors’ Responsibilities for the Consolidated Financial Statements
The Board of Directors is responsible for the preparation of the consolidated financial statements that give a trueand fair view in accordance with Swiss GAAP FER and the provisions of Swiss law, and for such internal control
as the Board of Directors determines is necessary to enable the preparation of consolidated financial statementsthat are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.

283

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:— Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
— Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theGroup’s internal control.
— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made.
— Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosuresin the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
— Evaluate the overall presentation, structure and content of the consolidated financial statements, including thedisclosures, and whether the consolidated financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.
— Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit
opinion.
We communicate with the Board of Directors or its relevant committee regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period andare therefore the key audit matters. We describe these matters in our auditor’s report, unless law or regulationprecludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.

384

Report on Other Legal and Regulatory Requirements
In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm that an internal control system exists, which has been designed for the preparation of consolidated financial statements according to the instructions of the Board of Directors.
We recommend that the consolidated financial statements submitted to you be approved.
KPMG AG{{Signatureleft}}{{Signatureright}}

Roman Wenk
Licensed Audit Expert
Auditor in Charge

Benjamin Marte
Licensed Audit Expert

Zurich, 28 February 2023

KPMG AG, Badenerstrasse 172, CH-8036 Zurich© 2023 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member of the KPMG global organization of independent member firms affiliatedwith KPMG International Limited, a private English company limited by guarantee. All rights reserved.

485Balance Sheet

INFICON Holding AG, Bad Ragaz / Switzerland(CHF in Thousands)

Notes

AssetsCash
Other short-term receivablesfrom third parties
from companies in which the entity holds an investment
from companies in which the entity holds an indirect investment
Short-term loans granted to companies in which theentity holds an investment
Prepaid expenses and accrued income
Total current assets
Financial assets
Long-term loans granted to companies in which theentity holds an investment
Long-term loans granted to companies in which theentity holds an indirect investment
Investments
Intangible assets
Total non-current assets

2.1

2.2

December 31,
2022

December 31,
2021

3,587

5,836

—
3,484
113

52
3,438
—

—

1,120

271
7,455

190
10,63646,92341,511

2.3

10,155

10,0572.4

148,540
976
206,594

148,540903
201,011

214,049

211,647

177
1,169
39,0001,773
3,231
45,350

27
3,057
8,800
—
3,244
15,128

—
—

900
900

45,35016,028

2.11

12,226

12,226

2.12

620

8,194

2,590

2,590

128,831
25,086(654)

140,440
32,739(570)

Total shareholders’ equity

168,699

195,619

Total liabilities and shareholders’ equity

214,049

211,647

2.5

Total assets
Liabilities and Shareholders’ Equity
Other short-term liabilities
to third parties
to companies in which the entity holds an investment
Short-term interest-bearing liability
Short-term provisions
Accrued expenses and deferred income
Total short-term liabilities
Long-term provisions
Total long-term liabilities

2.6
2.7
2.8
2.9

2.10

Total liabilities
Share capital
Legal capital reserves
Reserves from capital contributions
Legal retained earnings
General legal retained earnings
Voluntary retained earnings
Available earnings
Profit brought forward
Profit for the year
Treasury shares

2.13

86

Statement of Income

INFICON Holding AG, Bad Ragaz / Switzerland(CHF in Thousands)

Year ended December 31,
Dividend income
Royalty income
Management fees income
Other financial income
Total income

Notes

2022

2021

2.14

9,998
16,94812,604
3,187
42,73718,282
14,2659,653
5,470
47,6704,830
10,378
366
417
1,660
17,651

4,013
8,787
296
336
1,499
14,931

25,08632,739

2.15
2.16
2.17

Personnel expenses
Other operating expenses
Amortization/depreciation on non-current assets
Financial expenses
Direct taxes
Total expenses

2.18
2.19
2.20

Profit for the year

87

Notes to the Financial Statements

INFICON Holding AG, Bad Ragaz / Switzerland

1 Principles
1.1 General Aspects
The financial statements of INFICON Holding AG,
Bad Ragaz (the “Company”), were prepared according
to the principles of the Swiss Law on Accounting
and Financial Reporting (32nd title of the Swiss Codeof Obligations). Where not prescribed by law, the­significant accounting and valuation principles applied
are described below.

1.6 Share-based payments
Share-based compensation programs for the Board­of Directors are in place since 2014 and for GroupManagement and Key Employees since 2015. Treasury
shares are used in these programs and the cost is­determined by reference to the average market price ofthe shares as of the fifth trading day after the Ordinary
Annual General Meeting. The difference between theacquisition costs and the average market price at
grant date is allocated to the retained earnings.

The information contained in the financial statements
relates to the ultimate parent company alone, while
the consolidated financial statements reflect the economic situation of INFICON Group as a whole.

For the Board of Director’s program, costs are allocated over the first year after allocation (vesting­period). The costs of granted shares are recognizedin other operating expenses.

1.2 Valuation Methods and Translation of
Foreign Currencies
Assets and liabilities in foreign currencies are translated
into Swiss Francs using year-end rates of exchange,
except investments which are translated at historicalrates. Transactions during the year in foreign currencies are translated at the exchange rates effective at
the relevant transaction dates. Foreign currency gains
and losses are recognized in the statement of income.

1.7 Cash Flow statement and additional­disclosures
As INFICON Holding AG has prepared its consolidated
financial statements in accordance with a recognizedaccounting standard (Swiss GAAP FER), no cash flow
statement and notes with additional information are­required for the Company.

1.3 Financial assets
Loans granted in foreign currencies are translated
at the rate at the balance sheet date, whereby unrealized losses are recorded but unrealized profits aredeferred. Financial assets include long-term loans to
subsidiaries.
1.4 Investments
The investments in subsidiaries are carried at lowerof cost or their intrinsic value.
1.5 Treasury Shares
Treasury shares are recognized at acquisition costs­including transaction costs and deducted from shareholders’ equity at the time of acquisition. The acquisition
costs are calculated with the FIFO method (first in –first out). In case of resale, the gain or loss is recognizedthrough the voluntary retained earnings.

88Notes to the Financial Statements

INFICON Holding AG, Bad Ragaz / Switzerland

2 Disclosure on Balance Sheetand Income Statement Items

December 31,
Company
Currency
2022
2021
INFICON GmbH
Cologne, Germany
Share Capital
EUR
1,026
1,026
Share in capital and voting rights
100%
100%
Purpose: Manufacturing, Sales and Service
INFICON Aaland Ab(in 1,000) (in 1,000)
Mariehamn, Finland
Share Capital
60
60
Share in capital and voting rights
100%
100%
Purpose: Manufacturing
INFICON AB
Linköping, Sweden
Share Capital
SEK
3,810
3,810
Share in capital and voting rights
100%
100%
Purpose: Manufacturing and Sales
INFICON ApS
Copenhagen, Denmark
Share Capital
DKK
50
50
Share in capital and voting rights
100%
100%
Purpose: Sales
INFICON Ltd.
Blackburn, United Kingdom
Share Capital
GBP
400
400
Share in capital and voting rights
100%
100%
Purpose: Sales and Service
INFICON S.A.R.L.
Courtaboeuf, France
Share Capital
EUR
108
108
Share in capital and voting rights
100%
100%
Purpose: Sales and Service
INFICON S.r.l.
Bozen, Italy
Share Capital
EUR
10
10
Share in capital and voting rights
100%
100%
Purpose: Sales
INFICON Co., Ltd.
Kawasaki-Shi, Japan
Share Capital
JPY
90,00090,000Share in capital and voting rights
100%
100%
Purpose: Sales
INFICON Ltd.
Chubei City, Taiwan
Share Capital
TWD
52,85352,853
Share in capital and voting rights
100%
100%
Purpose: Sales
INFICON Ltd.
Bungdang-Ku, Korea
Share Capital
KRW
600,000 600,000
Share in capital and voting rights
100%
100%
Purpose: Manufacturing and Sales

2.1 Short-term loans granted to companies inwhich the entity holds an investment
Short-term loans granted to companies in which theentity holds an investment consisted of a credit facility
which was granted to a subsidiary. The interest rate
was 0.25% p.a.. The short-term loan was paid backin full in 2022.
2.2 Long-term loans granted to companies inwhich the entity holds an investment
December 31,
maturity
Up to five years
Up to five years
Up to five years

interest
rate in %2.00–5.00
0.75
0.25

2022
MUSD 41
MEUR 3
MCHF 62021
MUSD 42
MEUR 3—

2.3 Long-term loans granted to companies inwhich the entity holds an indirect investment
At December 31, 2022, long-term loans granted tocompanies in which the entity holds an indirect investment included a long-term loan granted to an indi­rect
held subsidiary. The interest rate is 6% and 5% p.a.
respectively and the maturity is more than five years.
2.4 Investments
The subsidiaries included in INFICON Holding AG’s
investment portfolio are shown below.
December 31,
Company
Currency
2022
2021
INFICON Inc.
(in 1,000) (in 1,000)
Syracuse, USA
Share Capital
USD**
Share in capital and voting rights
100%
100%
Purpose: Manufacturing, Sales and Service
INFICON AG
Balzers, Liechtenstein
Share Capital
CHF
6,000
6,000
Share in capital and voting rights
100%
100%
Purpose: Manufacturing, Sales and Service

89Notes to the Financial Statements

INFICON Holding AG, Bad Ragaz / Switzerland

December 31,
Company
Currency
2022
2021
INFICON Pte. Ltd.
Singapore
Share Capital
SGD
1,797
1,797
Share in capital and voting rights
100%
100%
Purpose: Sales
INFICON Ltd.
Hong Kong
Share Capital
HKD
8,780
8,780
Share in capital and voting rights
100%
100%
Purpose: Sales
INFICON (Guangzhou) Instruments Co., Ltd.
Guangzhou
Share Capital
RMB
9,837
9,837
Share in capital and voting rights
100%
100%
Purpose: Service
INFICON Instruments (Shanghai) Co., Ltd.
Shanghai
Share Capital
USD
2,180
2,180
Share in capital and voting rights
100%
100%
Purpose: Manufacturing
INFICON EDC Inc.
Overland Park, USA
Share Capital
USD
500
500
Share in capital and voting rights **
100%
100%
Purpose: Manufacturing, Sales and Service
INFICON InstruTech LLC
Longmont, USA
Limited Liability Company
Equity Interest **
100%
100%
Purpose: Manufacturing and Sales
IFCN.SW
Corregidora Qro., Mexico
Share Capital
MXN
10—
Share in capital and voting rights
100%—
Purpose: Sales

2.7 Short-term interest-bearing liability
The company has an outstanding short-term loan of
MCHF 39 in favor of the Landesbank Baden-Württemberg
at December 31, 2022 (2021: MCHF 8,8). The interest
rate is 1.46% p.a. (2021: 0.11% p.a.).
2.8 Short-term provisions
The short-term provisions relate to pending bonuses
for the financial year 2022. Further details see note
2.10.
2.9 Accrued expenses and deferred income
In CHF 1,000
Liabilities to third parties
Liabilities due to pension fundLiabilities to governing bodies(Board of Directors and auditors)
Total

December 31,
2022
2021
64
27
59
—

177

27

3,231

3,244

Conditional Share Capital
The articles of incorporation provide for a conditional
capital of a maximum of CHF 48,470 through the­issuance of 9,694 registered shares of CHF 5 each by
the exercise of option rights granted to employees
and members of the Board of Directors of the Company.
Since May 7, 2021, no exercisable options exist.

2.6 Other short-term liabilities to third parties—376

2.11 Issued, authorized and conditional share capital
Share capital in the amount of CHF 12,226 (2021:
CHF 12,226) consists of 2,445,161 (2021: 2,445,161)
registered shares at a nominal value of CHF 5 each.

2.5 Intangible assets
Intangible assets mainly consist of capitalised costs ofpatents, trademarks, technologies and softwares.

54

375

2.10 Long-term provisions
The long-term provisions relating to the long-term incentive bonus plan of the companies CEO were reclassified to short-term provisions in 2022. The reclassification is due to the maturity of the bonus in
2023.

* 	INFICON Inc. has issued 100 shares at a nominal value of USD 0.01 per share**	Indirect participation

In CHF 1,000
Liabilities to third parties
Liabilities due to pension fundLiabilities to governing bodies(Auditors)
Total

December 31,
2022
2021
2,856
2,799
—
69

2.12 Reserves from capital contributions
The reserves from capital contributions include thepremium from capital increases in the years 2000–2021,
less the distributions to shareholders.

90Notes to the Financial Statements

INFICON Holding AG, Bad Ragaz / Switzerland

Due to existing different practices regarding theaccounting of the stamp duties incurred in connection
with the increase in share capital there is a deviationof the reserves from capital contributions stated in thestatutory financial statements of INFICON Holding AG(CHF 620,476) and the amount the Swiss Federal Tax
Administration recognizes (CHF 88,855) at
December 31, 2022.

At December 31, 2022, the acquisition costs for a numberof 3,300 shares purchased during the year amounted
to TUSD 3,249 (TCHF 3,103) compared with TUSD 1,703(TCHF 1,577) at December 31, 2021, for a number of
1,500 purchased shares in 2021. The treasury sharesare reserved for compensations due in 2022. Theseshares are non-dividend bearing shares.
2.14 Dividend income
Dividend income consists of dividends paid bysubsidiaries.

2.13 Treasury sharesa) Treasury Shares 2022

2.15 Royalty income
Royalty income consistes primarily of licensing income
for the use of registered patents and trademarks fromsubsidiaries.

Price per share in CHF
Number oftreasurysharesBalance as of January 1

HighestLowestVolumeweighted
average

520

Purchases January 18, 2022

283

1,174.00

1,164.00

1,170.39

Purchases January 19, 2022

217

1,188.00

1,158.00

1,173.94

Purchases January 24, 2022

390

1,078.00

1,052.00

1,062.24

Purchases January 25, 2022

110

1,134.00

1,088.00

1,104.47

Purchases February 14, 2022

250

1,026.00

1,012.00

1,020.18

Purchases February 15, 2022

250

1,062.00

1,026.00

1,048.45

Purchases April 27, 2022

316

892.00878.00881.06

Purchases April 28, 2022

484

919.00880.00892.45Purchases September 19, 2022

99

656.00643.00648.91

Purchases September 20, 2022

268

668.00658.00662.97Purchases September 21, 2022

133

677.00663.00671.26

Purchases December 12, 2022

230

838.00813.00823.67Purchases December 13, 2022

270

857.00831.00840.06

Allocation to Members of theBoard of Directors(232)

Allocation to Group Management
and Key Employees
Balance as of December 31

2.16 Management fees income
Management fees income consists of compensation
payments from group companies for management services provided by the Company.
2.17 Other financial income
Other financial income amounts to TCHF 3,187(2021: TCHF 5,470) and consists mostly of interest­income and gains from foreign currency loans tocompanies in which the entity holds an investment.

(2,733)2.18 Other operating expenses

855

In CHF 1,000
Administrative expenses
Share based payments
Consulting expenses
Withholding taxes
Other operating expenses*
Totalb) Treasury Shares 2021
Price per share in CHF
Number oftreasurysharesBalance as of January 1

HighestLowestVolumeweighted
average

1,917

Purchases March 17, 2021

500

994.00981.00991.33Purchases August 13, 2021

200

1,072.00

1,056.00

1,063.41

Purchases August 16, 2021

210

1,064.00

1,054.00

1,058.50

Purchases August 17, 2021

90

1,062.00

1,044.00

1,052.84

Purchases September 30, 2021

500

1,110.00

1,092.00

1,096.97

Allocation to Members of theBoard of Directors(222)

Allocation to Group Management
and Key Employees
Balance as of December 31

December 31,
2022
2021
2,059
2,136
226
226
1,325
1,206
230
265
6,538
4,954
10,3788,787* 	In 2022 the main expense items related to insurance, IT, patent and marketing
expenses as well as to fees for the Board of Directors.

2.19 Financial expenses
Financial expenses amount to TCHF 417 (2021:
TCHF 336) and consist mostly of foreign currency
losses from transactions with companies in which
the entity holds an investment.

(2,675)520

2.20 Direct taxes
The tax charge includes income and capital taxes.
91Notes to the Financial Statements

INFICON Holding AG, Bad Ragaz / Switzerland

3 Other Information

The members of the Group Management held together
on December 31, 2022 directly and indirectly a totalof 0.21% (2021: 0.17%) bearer shares or 0.21% (2021:
0.17%) of the voting rights of INFICON. The membersof the Board of Directors held together on December 31,
2022 directly and indirectly a total of 21.39% (2021:
21.28%) bearer shares or 21.39% (2021: 21.28%) of
the voting rights of INFICON.

3.1 Full-time Equivalents
The annual average number of full-time equivalents
for the reporting year, as well as the previous year, did
not exceed 10.
3.2 Significant Shareholders
The following shareholders owned more than
5 percent of voting rights:
December 31,
KWE Beteiligungen AG
7-Industries Holding B.V.

2022
19.60%
9.27%

3.4 Shares for Group Management, Key Employees
and Members of the Board of Directors

2021
19.50%
9.27%a) Share-based compensations 2022
Shares granted
Quantity

Any significant shareholder notifications during 2022
and since January 1, 2023, can be accessed via
the following weblink to the database search pageof the disclosure office:http://bit.ly/IFCN_major_Shareholders

Total Board of Directors

Value in
CHF 1,000

232

225

Total Group Management and Key Employees

2,733

2,173

Total

2,965

2,398

b) Share-based compensations 2021
Shares granted

3.3 Shares owned by Group Management andMembers of the Board of D
­ irectors, including any
related parties
The number of shares owned by the Board of Directors and Group Management for the years ended
December 31:
2022

2021

Board of Directors:
Dr. Beat E. Lüthi
Dr. Richard Fischer
Vanessa Frey *Beat Siegrist
Dr. Reto Suter
Total Board of Directors

1,554
26,239173
15,69482
43,742

1,488
26,190140
15,65240
43,510Group Management
Lukas Winkler, President & CEO
Matthias Tröndle, Group CFO
Total Group Management

4,396
657
5,053

3,755
383
4,138

Quantity
Total Board of Directors

Value in
CHF 1,000

222

225

Total Group Management and Key Employees

2,675

1,829

Total

2,897

2,054

In 2014, the Directors’ Stock Option Plan and in 2015
the Key Employee Stock Option Plan, both from 2001,
were terminated and a share program was introduced.
On May 7, 2021, all exercisable options had expired.
As to the share-based compensations the relevant shareprice for allocation purposes is the average priceof the share as of the fifth trading day after the Ordinary
Annual General Meeting. Shares for compensation toGroup Management and key employees are transferredat acquisition costs to the respective legal entity.
3.5 Contingent Liabilities
In CHF 1,000
Guarantees in favor of
an affiliated companies* 	Vanessa Frey as part of the Frey family owns through KWE Beteiligungen AG 19.6%(2021: 19.5%) in INFICON Holding AG.

December 31,
2022
2021
2,028

2,095

The guarantees in favor of affiliated companies areto cover credit facilities with various banks in Europe.
One of the credit facilities is drawn by TCHF 95.
92

Appropriation of Available Earnings

INFICON Holding AG, Bad Ragaz / Switzerland(Proposal of the Board of Directors)

In CHF 1,000
Reserves from capital contributions
at beginning of year
Share premium on
exercised stock options
Distribution to shareholders
Reserves from capital contributions
Profit brought forward
Results from loss on treasury
sharesDistribution to shareholders
Profit for the year
Available earnings

December 31,
2022
2021
8,194

7,227

—

967

(7,574)
620

—
8,194

173,179 179,779
(616)

(253)

(43,732) (39,086)
25,086 32,739
153,917 173,179

The Board of Directors proposes to the General Meetingof Shareholders the following appropriation:
Available earnings
153,917
before proposed distribution
Distribution from available
earnings(2022: CHF 18.00 each share)
44,013Available earnings
109,904
after proposed distribution

93

Statutory Auditor's Report
To the General Meeting of INFICON Holding AG, Bad Ragaz

Report on the Audit of the Financial Statements
OpinionWe have audited the financial statements of INFICON Holding AG (the Company), which comprise the balance
sheet as at 31 December 2022, and the statement of income for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies.
In our opinion, the financial statements (pages 86 to 93) comply with Swiss law and the Company’s articles of incorporation.
Basis for Opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the “Auditor’s Responsibilities for the Auditof the Financial Statements” section of our report. We are independent of the Company in accordance with theprovisions of Swiss law, together with the requirements of the Swiss audit profession and we have fulfilled ourother ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. We have determined that there are no key audit matters to communicate in our report.
Other Information
The Board of Directors is responsible for the other information. The other information comprises the information
included in the annual report, but does not include the consolidated financial statements, the stand-alone financial
statements of the Company, the compensation report and our auditor’s reports thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form ofassurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

KPMG AG
Zurich, 28 February 2023

94

Board of Directors’ Responsibilities for the Financial Statements
The Board of Directors is responsible for the preparation of the financial statements in accordance with the provisions of Swiss law and the Company’s articles of incorporation, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:— Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
— Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theCompany’s internal control.
— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made.
— Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosuresin the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
We communicate with the Board of Directors or its relevant committee regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report, unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

2

95

Report on Other Legal and Regulatory Requirements
In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm that an internal control system exists, which has been designed for the preparation of financial statements according to the instructions of theBoard of Directors.
We further confirm that the proposed appropriation of available earnings complies with Swiss law and the Company’s articles of incorporation. We recommend that the financial statements submitted to you be approved.
KPMG AG{{Signatureleft}}{{Signatureright}}

Roman Wenk
Licensed Audit Expert
Auditor in Charge

Benjamin Marte
Licensed Audit Expert

Zurich, 28 February 2023

KPMG AG, Badenerstrasse 172, CH-8036 Zurich© 2023 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member of the KPMG global organization of independent member firms affiliatedwith KPMG International Limited, a private English company limited by guarantee. All rights reserved.

3

96

97

Imprint and Contact

Note regarding forward-looking statements
Forward-looking statements contained herein are qualified in their entirety as there are certain factors that
could cause results to differ materially from those anticipated. Any statements contained herein that are notstatements of historical fact (including statements containing the words “believes”, “plans”, “anticipates”,“expects”, “estimates”, “continue”, “may” and similar
expressions) should be considered to be forwardlooking statements. Forward-looking statements involve
inherent known and unknown risks, uncertainties andcontingencies because they relate to events and dependon circumstances that may or may not occur in the
future and may cause the actual results, performanceor achievements of the company to be materially different from those expressed or implied by such forwardlooking statements.

Many of these risks and uncertainties relate to factorsthat are beyond the company’s ability to control orestimate precisely, such as future market conditions,currency fluctuations, the behavior of other market
participants, the performance, security and reliabilityof the company’s information technology systems,
political, economic and regulatory changes in the countries in which the company operates or in economicor technological trends or conditions. As a result, investors are cautioned not to place undue reliance onsuch forward-looking statements.
Except as otherwise required by law, INFICON disclaims
any intention or obligation to update any forwardlooking statements as a result of developments occurring
after the date of this report.

Imprint
Published by:
INFICON Holding AG
Hintergasse 15B
CH-7310 Bad Ragaz
Editorial Co-operation:
Sensus Communication Consultants, Zürich
Print:
Neidhart + Schön Print AG, Zürich

Investor Relations
Matthias Tröndle, Vice President and CFOINFICON HOLDING AG, Hintergasse 15 B
CH-7310 Bad Ragaz, Switzerland
Tel. +41 81 300 4980
Fax +41 81 300 4988
E-mail: matthias.troendle@inficon.com

Sustainability Advisor:
Sustainserv, Zürich
Photos/Illustration:
All photos and illustrations provided by INFICON

98

© 2022 INFICONW W W.INFICON.COM