2019 Business Report 2020

The Uhlmann Group specializes in the development and provision of solutions for the safety and integrity of sensitive products. Focusing on the digitalization of production and packaging processes, we serve a variety of market segments by offering innovative solutions, services, and technological expertise that extend far beyond just packaging. 03

DEAR READER, The Uhlmann Group is a steadily evolving corporate network. We again intensively promoted change in the business year 2019 | 20. A new holding structure stands us in good stead for the future, and we have broadened our expertise on the basis of diverse activities. “Beyond Packaging” is a commitment met by all the Group Companies – Uhlmann, KOCH, Cremer, Wonder – in a more than convincing manner. We attained record sales in the Group amounting to EUR 434 million. The addition of Axito means that the Uhlmann Group now comprises five strong brands. By transferring Mechanical Manufacturing to a separate company, we are substantially strengthening our independence in this field and are able to systematically tap into growth potential, also in new sectors. The Uhlmann Group has also expanded in another respect. Digitalization of the value-added processes is increasingly gaining in significance with our customers. In this context, we offer a comprehensive portfolio of innovative products that permits scalable connectivity ranging from machines to cloud applications. Of course, COVID-19 also kept us on our toes. We displayed fortitude, acted quickly and extensively, and made every effort to minimize the enormous implications of the pandemic for our customers and employees – and, more than ever, to be a reliable partner everywhere in the world. We established a good starting basis in the Uhlmann Group over the past business year, which allows us to take advantage of opportunities in significant markets worldwide. Our focus is again set on this in the new business year 2020 | 21. By strengthening our companies and the Uhlmann Group in the long term, we are continuing on the path pursued with great commitment by Norbert Gruber. His loss is difficult to put into words. However, we can and will honor his legacy, upholding it in the future through our conduct. Prof. Dr.-Ing. Matthias Niemeyer CBDO 05

Again an increase in sales as well as more employees – the Uhlmann Group closed the business year 2019 | 20 with a new track record. Incoming orders rose by 8.7 percent to EUR 437 million and sales attained EUR 434 million, likewise an increase com- pared to the previous year. The COVID-19 pan demic had little impact on the results, also on account of the cross-company crisis management and the swift implementation of appropriate measures. The number of employees in the Uhlmann Group grew world wide in the past fiscal year from 2,334 to 2,515. Numerous new recruitments took place in the Group Companies, particularly in the business unit Digital Solutions in Laupheim, as well as in Wrocław, Poland. Two factors underlie this success: the innovative strength of the individual com- panies, as well as the commonly practiced culture and values, which distinguish and differentiate the Uhlmann Group positively. All the brands developed dynamically in the s Beyond Packaging 07

Laupheim I Germany Laupheim I Germany Pfalzgrafenweiler I Germany Lisse I Netherlands Jinzhou I China Wrocław I Poland of the wide-ranging professional skills of the employees, the Uhlmann Group was extensively restructured in October 2019. Operations and superordinate functions have been clearly separated by establishing the new company Uhlmann Group Holding. The holding company manages and co- ordinates all issues relevant to long-term success. Responsibilities of the division Corporate Business Development include the identification of new target groups, markets, and business models, as well as long-term development planning for all the Group Companies. The divisions Corporate Finance & Controlling, Corporate Human Resources, and Corporate Communications also belong to the holding company. A key, future-oriented field is also integrated under the name Corporate Digital Lab. Using innovative digital methods, new, market- relevant ideas and solutions are generated and implemented faster here than through conventional channels. One example is the application of design thinking, a method for the faster visualization of product ideas. The holding structure allows the five Group Companies to concentrate more intensively on their core competencies. PHARMAZING DAYS 2019 AS FIRST UHLMANN GROUP SHOW “Solutions beyond packaging” was the motto of the PHARMAZING DAYS 2019 hosted in Laupheim in June last year. The three-day event in 2019 was the first to be held at Group level and presented a new, uniform look. This indicates at first glance the common bond between the Group Companies and yet retains the strong brand identity of the individual companies. Uhlmann, KOCH, Cremer, and Wonder used the show, attended by some 650 visitors, to convincingly honor the previously de- clared pledge of securing a leading edge with innovative solutions – on the basis of packaging machines and lines for the efficient packaging of varying batches, tailored services, and digital applications for the management and optimization of production processes. The new, consistent visual effect across the markets and sectors also characterized the appearance at the China International Pharmaceutical Machinery Exposition (CIPM) in China. All the members of the 09

values and the corporate culture. However, sustainability is gaining in significance for society as a whole. Expectations are in- creasing in all three bottom lines of sustain- able development – ecological, economic, and social. All the companies make a sub- stantial contribution and will further inten- sify their involvement. One aspect here is closer cooperation with customers to meet their increasing demands for products with smaller ecological footprints. Sustainability is also becoming more effective at com- pany level. Improvements in occupational safety and health management, or the increasing use of energy from renewable sources are among the examples. The commitment to greater sustainability is also underlined by the membership of Uhlmann in the UN Global Compact, which was entered into in 2019 and involves compliance with the ten defined universal principles. The Uhlmann Group is seeking to work more closely together on this key issue and communicate all efforts internally and externally in a transparent manner. A joint sustainability strategy in this context is to be developed and implemented this year. DEVELOP BUSINESS MODELS, TAP INTO GROWTH POTENTIAL The Uhlmann Group was able to appoint Prof. Dr.-Ing. Matthias Niemeyer to take over these responsibilities. He took up the Prof. Dr.-Ing. Matthias Niemeyer, Chief Business Development Officer (CBDO) newly created position of Chief Business Development Officer (CBDO) on May 1, 2020. Professor Niemeyer has many years of leadership and management experience in international mechanical engineering com- panies, as well as in-depth knowledge of the packaging industry. For Tobias Uhlmann, he is well suited “as a manager with a passionate interest in technology and a high customer focus. Combined with his cooperative and pragmatic management style, he excellently matches the values we uphold in the Uhlmann Group.” “We have already achieved a lot on the way to becoming a sustainable company group – but we cannot and do not want to be content with that. We will adopt a joint, cross- company sustainability strategy in 2020.” Tobias Uhlmann, Chairman of the Supervisory Board 11

These days, pharmaceutical manufacturers want and need partners who offer inte - grat ed solutions. Uhlmann positions itself here as a total solution provider and covers all aspects of pharmaceutical packaging with an extensive program. Machines, services, and digital solutions make up a triad geared to respective customer needs. FOCUS ON OVERALL SUCCESS: NEW BUSINESS UNITS ESTABLISHED In the interest of greater working efficiency with a specific focus on customer satis- faction and business success, Uhlmann commenced extensive restructuring in November 2019. Separate divisions were merged into seven business units: Packaging Systems, Digital Solutions, Customer Services, Logistics, Manufacturing, Sales, and Shared Services. The objectives behind this include leaner and harmonized pro- cesses, the optimized use of resources, short decision-making channels, and a focus on the overall goal. In addition to the business units, central functions such as Quality Management, Business Excellence, Product Management, and Marketing are also integrated into the new structure. To enable the best possible support for globally operating customers throughout the world, while taking the regionally varying market developments into account, the business unit Sales is now divided into n Provider 13 Uhlmann has been digital for a long time. New is networking and the added-value gained from machine data. Some 100 software engineers are working on making the most of this additional benefit for customers.

designed blister machine is geared to the productive packaging of a variety of liquid dose products. Unique selling point of the BLU 200 is its capacity to handle sets com- prising ampoules and syringes, for example, in addition to individual liquid products. In March 2020, the first model of the new generation of end-of-line packaging ma- chines was introduced. Combined here is the expertise and innovative strength of two global leaders. The first “Uhlmann powered by pester pac automation” ma chine is the ECP 12, a combination of a case packer and a palletizing module for efficient end-of- line packaging in a consistently automated process. DIGITALIZATION AT UHLMANN: 100 PERCENT NEEDS-BASED How can digital applications be integrated into pharmaceutical processes? How can production data create added value beyond the specific machine, to attain higher ma- chine availability, more efficient pro cesses, and faster support? Digital appli cations presented by Uhlmann at the PHARMAZING DAYS 2019 gave answers to such questions in the form of needs-based, user-friendly solutions. These cover consultation, im- plementation, and support from a single source. The modules, developed internally to market maturity by the business unit Digital Solutions, include Track & Trace, Digital Training, Tool Management, and Condition Monitoring. TRAINING AND QUALIFICATION In order to retain knowledge and experi- ence in the company as long as possible by qualifying employees to meet the latest requirements, over 600 events totaling 30,000 hours took place in the business year 2019 | 20. The sum invested here by Uhlmann fell just short of a seven-digit figure. Tim Slomp, CTO “What are the strengths of our culture? We continually want to improve – by applying the skills of our experts even more effectively, for example, and systematically turning already excellent employees into problem solvers.” 15

approximately 100 employees from the business unit Digital Solutions. It addresses the question of how offices should be or- ganized these days, not only to encourage optimum work results, but also to attract new skilled personnel. As Kathrin Günther, head of the business unit, states: “Com - pe tition is increasing, particularly when it comes to IT jobs. The future belongs to companies that tread new paths.” The employees involved in the pilot project do not have fixed workplaces, for instance. Everyone takes what they need from a locker each morning and can work in various zones over the course of the day, depending what tasks are on the agenda. SEAMLESS MANAGEMENT CHANGEOVER Michael Mrachacz was appointed new Managing Director of Sales (CSO) at Uhlmann as of April 2019. He had previously managed Customer Support & Services since 2014. In that capacity, he pooled all aftersales activities in a business unit and significantly expanded the division. For Tobias Uhlmann, Michael Mrachacz is “the ideal successor to Siegfried Drost; an en- thusiastic, strong leader capable of getting things done, organizing, and motivating.” The state-of-the-art Uhlmann training workshop, which also provides five ongoing industrial mechanics from Kekeisen the opportunity to continue their apprenticeships since May 2020. Michael Mrachacz, CSO “Uhlmann is strong, open-minded, and reliable. These values shape our culture, guide our decision-making, and give our employees a long-term perspective. This is appreciated by more and more people.” 17

The motto “Packaging diversity at its best” signifies the portfolio of KOCH Pac-Systeme and likewise stands for the various activities in the business year 2019 | 20. The next generation of machines for the packaging of medical products was developed under the brand medplus. In terms of consumer goods, the focus was on sustainable forms of packaging, and services centered on extension of the digital portfolio. 50 YEARS OF PACKAGING TECHNOLOGY MADE BY KOCH A special event in 2019 was the fiftieth anniversary of the company, celebrated under the motto “Tradition – Motivation – Innovation”. This triad represents everything KOCH stands for, making it a globally sought- after partner for reputable enter prises. Tradition for KOCH is the development of customized packaging solutions on the basis of perfected machine technology. Motivation stands for the aspiration to extend what has been achieved to attain further steady, sound growth. The third element of success is innovation. KOCH actively moves into new fields of expertise in good time, as demonstrated by the K 4.0 digital services that complement the classic forms of customer support. The anniversary was celebrated in November with the inauguration of the new office and communication building, and a big event at Its Best Think ahead, actively promote change, and never be satisfied with the status quo. Instead, offer today what others first have the day after tomorrow. 19

structured according to the latest principles of cooperative work between departments. The Executive Board, Marketing, Accounting, Human Resources, Controlling, and IT have been working hand in hand there since the end of 2019. According to Harald Jung, this was precisely the intention of the concept: “In addition to the appropriate outward impression toward customers, we wanted to bring these divisions together to gen - e rate many synergy effects.” The experts responsible for solutions for the contact lens sector also work in the new building. Discussion zones offer space for short meetings, while conference rooms fitted with state-of-the-art technology are available for longer events. The lighting and air conditioning in the building are self-regulating. The heating uses renewable energy supplied by a local cooperative. NEW MACHINE GENERATION MEDPLUS MEETS HIGHEST DEMANDS The business unit Medical Technology at KOCH also made positive progress in the The new Blister machine KBS-C medplus with innovative processes that reduce the use of material and optimize blister quality 21

past business year. However, customer specifications do change. There is a growing demand for flexible machines suitable for a wide variety of products, packaging formats, and batch sizes. On the basis of intensive market studies, those responsible for the packaging of medical devices and pharmaceutical products extended the portfolio by developing the Blister Machine KBS-C medplus. The virtual in-house show KOCHlive held in June 2020 was used for the official market launch. The letter C stands for all the characteristic attributes of the new machine: for example, compact, clean – denoting cleanroom compliance – and clever, on account of innovative processes that reduce the use of forming material and ensure consistently high blister quality. One example of intensified cooperation in the Uhlmann Group is a solution implement- ed in 2019 combining a KOCH KDT medplus machine and a label printer with Track & Trace by Uhlmann. Specifications for prod- uct tracking in compliance with the Medical Device Tracking Regulation are met this way. SUSTAINABLE AND SUSTAINABLY INTELLIGENT: PACKAGE THE SMART WAY KOCH has been active in the sustainable packaging segment since the 1990s and was one of the first companies to have recyclable mono-material packaging in its portfolio. Eco-friendly packaging is a must for many customers these days, not only to meet the targets of the EU strategy to avoid plastic waste, but also to meet customer wishes. In the last financial year, KOCH developed a concept that intelligently combines all factors relevant to the principle “Package the smart way”. These include environmen- tal protection by using materials from re- cycling or bio-based sources, the reduced use of material by applying innovative processes, brand-oriented presentation using cycle-Pac® mono-material packaging, or blisters made of sustainable films or formable paper. DIGITAL SERVICE PACKAGES FOR ADDED EFFICIENCY IN DAY-TO-DAY PACKAGING In addition to classic support services, KOCH has been offering its K 4.0 digital services since 2017. In the business year 2019 | 20, the company further extended its expertise regarding digitalization in customized machine construction. The K 4.0 smartpacks are perfectly combined digital services. Examples include the Connec- tivity Pack for remote troubleshooting and maintenance, or the OEE Pack, which gives an in-depth picture of the packaging process, and reveals optimization potential for both the machine and its environment. KOCH Executive Board: CEO Harald Jung and CTO Karl Kappler “The exacting construction of customized machines, in which KOCH specializes, can only function when we all join forces – with every individual prepared to make progress to meet the needs of customers and the markets.” 23

When it comes to counting an exact number of products and configuring a customized packaging process, Cremer is the top ad- dress for major companies in the pharma- ceutical, food, nonfood, and agricultural industries. An increase in demand for this expertise – perfected over the course of seven decades – was recorded in the past fiscal year. The same applies to the turnkey proficiency of Cremer in terms of fully inte- grated packaging lines. The Group Company justified its ranking as technology leader by attaining a record number of contracts. The positive development in business year 2019 | 20 covered all strategic business segments. In the pharmaceutical field, the Bottle line IBC 150 – previously built and marketed in Laupheim under the brand Uhlmann – was transferred to Lisse. Furthermore, Cremer invested in the ex- pansion of its machine portfolio for the food, nonfood, and agricultural sectors as part of the growth strategy. In doing so, the company can tap into additional market potential. y to Count On Innovative, solid, trustworthy. These three attributes shaped us in the past, and make us what we are and want to remain: global leader in counting systems. 25

PHARMACEUTICAL PACKAGING IN BOTTLES POOLED AT CREMER Everything for the packaging of tablets or capsules in bottles from a single source: Pursuing this target, the Uhlmann Group transferred overall responsibility for Bottle Packaging to Cremer in the business year 2019 | 20. Since April 2020, the company covers the full spectrum of packaging in bottles – with the Bottle Unscrambler CBU-300 as well as the Bottle line IBC 150 for medium-sized batches, which was previously manufactured by Uhlmann. The key benefit of this line is the monobloc architecture that combines all stations, including the Cremer counting and feeding systems. All the process steps are optimally coordinated. This makes the packaging of solids in bottles much more productive than with a line that links separate components. ON-SITE KNOWLEDGE TRANSFER AND DIGITAL SUPPORT To prepare the Dutch specialists for com- pletely independent construction of the IBC 150, an intensive know-how transfer was initiated in summer 2019. Uhlmann mechatronic experts have been training their colleagues on the spot. The team previously responsible for production in Laupheim will continue to provide digital support. A first “Made in Lisse” edition of the IBC 150 is meanwhile nearing completion. EFFICIENT ALL-AROUND PROFICIENCY, UNPARALLELED PRECISION Whether various flavors of a product or confectionery assortments: Cremer de m- onstrated its turnkey expertise in product mix packaging lines in various large-scale projects in the business year 2019 | 20. Significantly higher speed and precision, better process monitoring, and overall enhanced produc tivity are the benefits of these high-tech lines compared to those of the competition. NEW MACHINE GENERATION FOR SEED COUNTING AND PACKAGING Another clear demonstration of Cremer’s innovative strength in the past business year was in the agricultural sector, the traditional field of business it has served since the foundation of the company. The CSC series, the next machine generation for the counting and packaging of seeds, was presented in September 2019. Central feature of the series is the integration of a completely new counting module. This was tested and refined to market maturity in a project in conjunction with a leading global agriculture and seed enterprise. The multinational corporation was gained as a new customer through this development partnership. Robert van Dorst, Managing Director “Full responsibility for the Uhlmann Bottle line IBC 150 is being transferred from Laupheim to Lisse in 2020. The accompanying transfer of knowledge could not have been more intensive and comprehensive.” 27

An area of 33,000 square meters for the production of packaging machines, new offices, and sales and service facilities – the new Wonder location in Jinzhou in China reflects consistent positive development. Since joining the Uhlmann Group in 2011, Wonder has installed over 600 sachet and blister machines in China and other growth market countries. The company ranks among the top five local manufacturers of pharmaceutical packaging equipment. Customers particularly value the reliable technology based on German engineering and the attractive price-performance ratio on account of production in China. Wonder wishes to expand more in the coming year and further intensify its integration into the overarching quality strategy of the Uhlmann Group. In this connection, Managing Director Henry Fang attaches particular importance to employee qualification to ensure the highest of standards in all areas, and espe- cially in terms of services. SUCCESSFUL PHARMAZING DAYS 2019 Blister machine and cartoner perfectly combined in a single unit: The Wonder r Emerging Markets 29

additional growth in the field of traditional Chinese medicine with the S1200. NEW LOCATION: IDEAL CONDITIONS FOR ADDED GROWTH After commencement of construction work in the Jinzhou industrial zone on June 10, 2019, Tobias Uhlmann, Chairman of the Supervisory Board of the Uhlmann Group, attended the official inauguration of the new Wonder facilities on November 12, 2019. The complex includes a progressive administra- tion building and a new 20,000-square- meter production hall. 12,000 square meters are already being used for the production of packaging machines. The other 8,000 are reserved for the next phase of produc- tion expansion. APART AND YET TOGETHER: WORKING IN TIMES OF COVID-19 New models for working from home and staggered hours in the company, and the increased use of digital tools were among a number of measures Wonder established at an early stage to ensure accustomed, reliable customer support without personal contact. Strict adherence to the official hygiene and protection regulations was systematically enforced. City government representatives attested the exemplary situation at Wonder during a visit in mid- February and immediately permitted the resumption of production. View of the new Wonder assembly hall designed to meet cutting-edge standards Henry Fang, Managing Director “We want to make a substantial, long-term contribution to the success of the Uhlmann Group with top-quality products and services. We are already looking forward to celebrating ten years of being part of this strong group in 2021.” 31

The pharmaceutical sector is expanding steadily and the need for packaging machines will continue to grow strongly in the coming years. This also results in a rising demand for machine parts and components, such as precision-designed, customized format parts for maximum machine uptime and top efficiency. Mechanical Manufacturing is responsible for production at Uhlmann. In order to im- prove the competitiveness of this business unit and maximize utilization of perspective growth in the sector, the Uhlmann Group created an independent company, Axito, for the production of parts and compo- nents in the past business year. Axito also Parts and Components 33

supplies the other Group Companies and, on account of its independence, can attract new companies and gain a foothold in other sectors. INDEPENDENCE OFFERS DEVELOPMENT POTENTIAL In addition to Mechanical Manufacturing in Laupheim, which will be transferred from Uhlmann to Axito in the coming business year, the fifth member company of the Uhlmann Group already has facilities in Poland. From early 2021, Laupheim and Wrocław will also officially form a produc- tion network with sufficient capacities to produce not only standard and special tools for Uhlmann Pac-Systeme, but also for the machines of the other Group Companies. Sights are also set on other markets accord- ing to Uhlmann CTO Tim Slomp: “On the basis of our in-depth expertise in the development and production of highly complex parts gained over decades, we are also an attractive partner for customers from other sectors.” HIGH INVESTMENTS IN THE NEW PRODUCTION NETWORK That the Uhlmann Group is pursuing long- term objectives is made clear by invest- ments slated for Laupheim. Investments are to be made in the coming years in the modern i za tion and digitalization of ma- chining production. Tobias Uhlmann sees this as a clear commitment to the produc- tion site Laupheim, to Germany, and to the employees, some of whom have been working in this division for decades. INTELLIGENT PRODUCTION IN POLAND Mechanical production at Axito in Wrocław meets latest standards. Use of the most modern processing technology ensures consistent premium-quality parts and highest productivity. Smartphones open doors and activate printers in the offices. The location is also well positioned in terms of staff. In the period since the commence- ment of production in July 2019 through March 31, 2020, additional highly qualified employees were engaged. A steady transfer of knowledge takes place with the colleagues in Laupheim in order to familiarize the skilled workforce with the high standards of the Uhlmann Group. The new employees are very positive in their assessment of the training opportunities and the option of taking an active part in the successful development of Axito. Tim Slomp, CTO Uhlmann “Many companies build up facilities abroad just to save costs. That was not an option for us. By establishing Axito, we have a technology base in Poland that sets standards.” 35