Risk Management

Environmental physical and transition risks.

Disruption to operations; pressure on revenue and profitability; strategic misalignment; fines.

See Climate Report in Appendix.

Any event in which an employee within a plant has an accident.

Repercussions for the health/living standard of an employee and their family; legal and regulatory consequences; reputational risks; negative impact on Autoneum’s ability to attract operators in our plants.

a) Work environment risk assessments are performed and actions are taken to mitigate or reduce any identified risks. b) Related to the special tasks, work permission is required before starting work. c) Education and training are provided to all employees in Autoneum plants on topics including machine guarding, accident investigation and reporting, lockout-tagout (LOTO), permits to work under specific circumstances, hazardous energy control, and working at heights. d) The main root causes of accidents are addressed through regular safety campaigns.

Not having the right skills for the right jobs.

A skills mismatch can lead to reduced productivity, operational delays, higher training and recruitment costs, and challenges in meeting customer and innovation demands. It may also impact product quality, slow down strategic initiatives such as digitalization and decarbonization, and reduce Autoneum’s competitiveness in the market.

To mitigate future skill gaps, Autoneum will establish workforce planning and reskilling programs aligned with digitalization and decarbonization needs. The HR and Operations Functions will collaborate to forecast skill requirements and implement targeted training. Recruitment and internal mobility policies will prioritize diversity of experience. Engagement with educational partners ensures upskilling of Autoneum employees. Transparent communication of these initiatives enhances employer reputation and operational continuity.

Any event that leads to discrimination, such as unequal pay or opportunities, or cases of harassment and bullying within the workforce.

Legal and compliance issues; negative impact on Autoneum’s ability to retain/hire workers; reputational damage.

a) Strive to build and foster a culture of diversity and inclusion. b) Implement a benchmark education framework for all Autoneum employees. c) Operate an anonymous Speak Up Line, where employees can notify Autoneum of any potential issues. d) The Internal Information leaflet on preventing sexual harassment is available to employees on the Intranet. e) Mandatory Anti-Harassment and Discrimination.

Autoneum may be unable to meet its target for share of women in top management positions.

Negative impact on Autoneum's culture (i.e., lack of diversity in the workforce and the benefits it brings); negative impact on Autoneum’s ability to attract both top and young female talent to our organization; Non-compliance with local laws (e.g. Art. 734f Swiss CO).

a) Autoneum has built a roadmap on how to improve representation of women in recruitment and succession planning procedures. b) The Diversity & Inclusion Board addresses both location-specific and Group-wide diversity challenges.

European Union (EU) countries will publish their specific rules on the Pay Transparency Act by mid-2026. Autoneum needs to assess potential gaps.

Non-compliance with pay transparency requirements could lead to significant financial risks, including fines, legal costs, and potential compensation claims related to unequal pay. In addition, gaps in compliance may harm Autoneum’s employer reputation, increase recruitment and retention costs, and reduce employee trust. Reputational damage could further impact customer and investor confidence. Operational disruptions may also arise if compensation structures must be corrected under time pressure.

a) Autoneum ensures compliance with established pay-transparency regulations in all countries where such rules are in force. b) In markets where regulatory requirements have not yet been published, we will evaluate the applicability of a global pay transparency policy versus regionally adapted approaches. c) To further strengthen global consistency in compensation management, Autoneum will accelerate the rollout of the Willis Towers Watson (WTW) Band & Grade framework across all operating regions during 2025/2026.

Any event in which employees are prevented from joining labor unions, employee organizations, or work councils in countries in which such organizations are part of the legal framework.

Legal and regulatory consequences; work stoppage at impacted plant; reputational risk and negative impact on Autoneum’s employee retention/attraction.

a) Autoneum recognizes freedom of association and collective bargaining as a fundamental human right. Employees are free to run, form, and join employee organizations or work councils, to join labor unions, and to collectively bargain or seek representation in accordance with local laws. b) Autoneum respects local laws on working hours and provides its employees with compensation and benefits that comply with local laws.

Any event in which materials produced by Autoneum’s suppliers with chemical or textile processing lead to pollution in the effluent water or the generation of waste.

Legal/regulatory consequences; negative impact on the health of local communities; reputational risk.

Autoneum’s Code of Conduct for Suppliers defines key principles in material compliance and business ethics, the environment, health and safety, and human and labor rights.

Autoneum’s suppliers could have high Scope 1, 2, and 3 emissions.

Regulatory consequences; negative impact on Autoneum’s Scope 3 emissions target for 2027.

a) Autoneum encourages suppliers to use renewable or bio-energy in their production process. b) Autoneum strives to include as much recycled or bio-derived material as possible. c) Autoneum sets out clear Scope 3 emission requirements for suppliers and holds regular follow-up meetings on decarbonization opportunities and energy efficiency projects at their production sites.

Any event that could impact the health of the end consumer due to issues with the materials used to make Autoneum parts.

Legal/regulatory consequences; reputational damage; negative financial impact on business.

a) Ensure all suppliers comply with material regulations through various tools and systems. b) The Material Compliance team is responsible for developing processes and tools that ensure the materials purchased and used in products conform with both legal and customer requirements.

Any event in which suppliers use so-called conflict materials in additives or catalysts used in the production of materials purchased by Autoneum.

Legal/regulatory consequences; reputational risk.

To ensure compliance with all applicable laws and regulations, each manufacturer in the supply chain must request information regarding the use of conflict minerals from their direct suppliers, who, in turn, must solicit that information from the next tier of suppliers.

Any event that could lead to allegations of corruption, such as employees inappropriately accepting or providing gifts, or invitations to events from customers, suppliers, or government officials.

Legal/regulatory consequences, including fines; negative impact on customer/consumer sentiment.

a) Nominal values for gifts and entertainment are set out in the Bribery, Corruption and Money Laundering Prevention Directive, which all employees have to accept as part of their employment conditions. b) Mandatory education and training on identifying and dealing with corruption. c) Employees and business partners can anonymously notify us regarding any potential misconduct via the Speak Up Line.

Any event that leads to non-compliance with antitrust laws worldwide, such as agreements between competitors that fix prices, allocate markets, or restrict the quantities of goods supplied or misuse of a dominant market position.

Non-compliance with antitrust laws can lead to fines imposed by authorities and claims from customers. It also creates reputational risk that may damage Autoneum’s credibility and stakeholder trust.

a) Recurring training sessions on a broad basis, according to the Legal function’s training concept and ongoing communication through other means (e.g., leaflets). b) Regular workshops with risk owners regarding the avoidance of exchange of sensitive information. c) Speak Up Line. d) Include consideration of respective criteria in hiring for sensitive positions. Consideration in third-party agreements. e) Clean team set-up during acquisition phase for potential M&A. f) Joint venture (JV) contracts for Chinese JVs with Nittoku were amended in 2024. g) Firewall guidelines are being implemented.

Third-party due diligence process required by: a) law b) OEMs c) as part of a complete Compliance Management System d) as part of sustainability standards (e.g., GRI Standards). Non-financial reporting obligations according to local law.

Non-compliance may lead to fines, penalties, or damage claims. It can also result in reputational harm for Autoneum.

a) Third-party Due Diligence Directive and Manual were updated in 2025. b) All Tier 1 suppliers must comply with our standards with regards to human rights and environmental risks. Questionnaires are sent to suppliers on a risk-based assessment. Autoneum has the possibility to audit the suppliers. c) Supply chain due diligence as required by the LkSG has been performed since 2024 by using IntegrityNext. d) Autoneum appointed a Human Rights Officer as well as a local contact person/person responsible in AGER, issued an updated human rights declaration in 2025 and the Speak-Up Process Description in 2024. e) The UK Modern Slavery Statement and the report under Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act are re-issued and published on an annual basis. f) Autoneum is a member of the UN Global Compact.

Increasing regulation of personal civil and criminal liability of board members and senior managers (e.g., NIS2 Directive of the European Union). Criminal liability such as fines, etc. are not covered by D&O Insurance.

Autoneum may face increased reputational risk. Board members may also be personally exposed to criminal liability that is not covered by D&O insurance.

Close monitoring of legal developments by the Group Legal & Compliance Function. Compliance with all applicable laws and provisions and implementation of risk-management measures (policies, processes, etc.) Continuous training of managers and the entire organization.