2022 Annual Report Political Sovereignty through Economic Competitiveness

Foreword Ladies and gentlemen, Society as a whole faced multiple challenges in 2022. Nevertheless, the Fraunhofer-Gesellschaft is on a scientifically excellent and economically stable path. Our business volume increased by 5 percent to around € 3.0 billion last year. This is in large part due to the great commitment, hard work and fruitful ideas of the approximately 30,800 people currently employed at the Fraunhofer-Gesellschaft. Although Germany is now managing one of the most diffi- cult crises in the post-war era, we are still facing the critical challenge to advance the transformation of the economy to climate neutrality. Sustainable innovations in the energy sector are the best way to increase productivity in the context of climate targets, to reduce dependency on fossil fuels and hence to secure Germany’s competitiveness as a technological powerhouse on a long-term basis. At the same time, increasing and expanding domestic energy production provides opportunities for OEMs to re-establish and relocate in Germany and Europe. This is the case, for example, for photovoltaic production, manufacturing capac- ities for wind turbines or electrolysis operations for the pro- duction of green hydrogen. By pooling its scientific expertise in a targeted manner, the Fraunhofer-Gesellschaft has already been successfully conducting research projects on resource efficiency and climate innovations for years. An example of excellent energy research that can accelerate the expansion of renewable energies in the short term is highly efficient solar cells. Fraunhofer researchers have been able to increase the efficiency of the best solar cell to date to 47.6 percent. Over the medium term, green hydrogen offers great potential and is regarded as an important part of the future energy mix. The first milestone in hydrogen research was achieved in 2022: enerPort II. This will be Europe’s first completely climate-neu- tral container terminal powered by hydrogen and is being built in Duisburg. In September, the H2GO — National Action Plan for Fuel Cell Production was also launched to develop highly scalable industrial fuel cell production for heavy-duty transport. The Fraunhofer-Gesellschaft has taken steps to secure its future by successfully establishing the new executive board structure, which now comprises five executive board units. I am also delighted to welcome Hildegard Müller, president of the German Association of the Automotive Industry (VDA), as the new chair of the Fraunhofer senate. As a team, I believe that we have what it takes to develop and strengthen the Fraunhofer-Gesellschaft’s capabilities and what it contributes to keeping the German and European economies competitive. Sincerely, Reimund Neugebauer President of the Fraunhofer-Gesellschaft until May 25, 2023 3 i r e f o h n u a r F / r e e m r e b O n a f e t S : o t o h P

Executive board’s report The executive board 2022 management report The senate’s report on financial year 2022 New senate chair and new senate members 55 ’

Executive board’s report I The executive board Elisabeth Ewen Prof. Axel Müller-Groeling Dr. Sandra Krey Executive Vice President for Human Resources, Corporate Culture and Legal Affairs Elisabeth Ewen is a fully qualified lawyer with an additional qualification in administrative and labor law. After graduating, she worked as a lawyer in the HR department of the German Aerospace Center (DLR) before she became director of human resources at GMD – Forschungszentrum Infor- mationstechnik GmbH. She came to the Fraunhofer-Gesellschaft with the integration of the company GMD – Forschungszentrum Informationstechnik GmbH. She has held several manage- ment positions in human resources at the Fraunhofer-Gesellschaft, most recently as director of human resources. Elisabeth Ewen has been on the executive board of the Fraunhofer- Gesellschaft since August 2022. Executive Vice President for Research Infrastructures and Digital Transformation Axel Müller-Groeling is a professor at Kiel University. The physicist and manager has conducted research at several renowned institutes and research organizations in Germany, France and Canada. He worked as a management consultant and was also a co-founder and executive vice president of an interna- tional, publicly listed photovoltaic group before becoming head of the Fraunhofer Institute for Silicon Technology ISIT in Itzehoe in 2016. He then also became head of the Fraunhofer Institute for Microelectronic Circuits and Systems IMS in Duisburg. He has been on the execu- tive board of the Fraunhofer-Gesellschaft since August 2022. Executive Vice President for Finances and Controlling Sandra Krey studied business admin- istration and earned her doctorate at Friedrich-Alexander-Universität Erlangen -Nürnberg. She held an auditing position at KPMG before she joined the MAN corporation in Munich in 2002. There she held various leadership positions in accounting and controlling. Most recently, she was senior vice presi- dent of Accounting and Finance Process- es at MAN Truck & Bus SE and, at the same time, was managing director of the MAN Shared Services Center in Poznań, Poland. Sandra Krey has been on the executive board at the Fraunhofer- Gesellschaft since August 2022. 77 7 i r e f o h n u a r F / r e e m r e b O n a f e t S : s o t o h P

Executive board’s report l 2022 management report Strategy and operating environment Profile of the Fraunhofer-Gesellschaft The Fraunhofer-Gesellschaft is the world’s leading applied research organization: Since its foundation in 1949, Fraunhofer institutes have been strengthening the competitiveness of business and innovation in Germany and Europe. Fraunhofer’s comprehensive range of solutions for industry and policymakers has an impact across industries. As such, the Fraunhofer strate- gic research fields provide a deliberate and dynamic impetus for future markets. The Fraunhofer-Gesellschaft is also a key player in making Germany a center of innovation. Its activities increase the effects of investments in the economy and create jobs in Germany, while skilled workers earn qualifications and modern technology becomes more socially acceptable. In 2022, around 30,350 people, predominantly scientists and engineers, were employed across 76 institutes with an annual research budget of around € 3.0 billion, € 2.6 billion of which is designated as contract research. Around two thirds of Fraunhofer contract research revenue is generated from industry contracts and publicly funded research projects. The German federal and state governments contribute around another third as base funding, enabling the Fraunhofer insti- tutes to develop solutions now to problems that will drasti- cally impact industry and society in the near future. contract research is the most important business focus. Fraunhofer is a particularly important supplier of innovative know-how for small and medium-sized enterprises. Fraunhofer also contrib- utes to the success of missions in key technologies for society as a whole. Fraunhofer is an attractive and established player in public-private partnerships. At an organization-wide level, Fraunhofer identifies innovative business units and trending technologies with major market potential and significant relevance to society and advances them through in-house research programs. Each individual Fraunhofer institute and research institution develops its own business units and core areas of expertise on the basis of its immediate market environment and its links with the wider scientific community. Although the institutes operate as separate profit centers, they are not autonomous legal entities. The institutes also cooperate in research facilities and partnerships to capitalize jointly on certain business units or sectors. Fraunhofer associations are currently finalizing portfolio coordination, which includes all organizational units. Internal change processes support the transformation Just like other companies and organizations, the Fraunhofer- Gesellschaft was affected by the global events of the war in Ukraine and the associated energy scarcity, as well as the effects of the COVID-19 pandemic in 2022. At the same time, Fraunhofer organized two comprehensive internal change processes with the introduction of SAP and the implementation of a new executive board structure. All administrative data and business processes of the Fraunhofer- Gesellschaft have been transferred to and implemented on the SAP system landscape since the start of 2022. This comprehen- sive change process, with a total of 46 SAP solutions, 7 partner solutions and 40 SAP cloud applications, is the largest solution package in the history of the SAP Group. During the hyper- care phase in the first few months, the Fraunhofer executive board created a high-level group of institute management and technical experts. This ensured operations could commence and the SAP system landscape could be used, while com- missioning solution processes were prioritized and problems were resolved. Since the changeover in January 2022, ongoing operations have been characterized by constant adaptations, fluctuation and automation. The aim of this is to stabilize the operation and use of the SAP system landscape and to continuously improve business process mapping. Fraunhofer accelerated business process orientation in order to achieve this. A team was created for each business process and these 9

Executive board’s report l 2022 management report In 2022, the Fraunhofer president, alongside the chairman of the executive board of BASF SE, Dr. Martin Brudermüller, chaired the “Strengthening electrolyzer production and use in Germany” task force and was a member of the “Innovation potential of AI-based robotics” task force. The German Chancellor also initiated the Transformation Alliance, which was a guiding dialogue between the German federal government and leaders from business, trade unions, associations, science and civil society to create a reliable framework for Germany’s transformation process. Securing a reliable, sustainable and affordable energy supply for Germany was the overarching objective of the second meeting of this alliance in 2022. At this meeting, Fraunhofer president Prof. Reimund Neugebauer presented a roadmap with three partial sub-goals: using domestic renewable energy efficiently and extensively; building a hydrogen economy; and operating a networked energy system intelligently. The key science policy projects of the German Federal Ministry of Education and Research (BMBF) in 2022 included establish- ing the German Agency for Transfer and Innovation (DATI) and updating the Strategy for the Future of Research and Innovation. The executive board of the Fraunhofer-Ge- sellschaft was involved in the stakeholder discussions on DATI and in the Strategy for the Future of Research and Innovation. As such, important innovation and science policy concerns for Fraunhofer were incorporated into the political process. The amendment of the Act on Fixed-Term Employment Contracts in Science (Wissenschaftszeitvertragsgesetz — WissZeitVG), which is planned for 2023, is being monitored by Elisabeth Ewen, Head of Human Resources, Corporate Culture and Legal Affairs. Russia’s war of aggression against Ukraine, which violated international law, led to geopolitical upheaval that necessi- tates new approaches to energy and defense policy. Managing the energy crisis and achieving independence from fossil fuels played a key role in 2022. Using hydrogen as a central energy source for future climate-neutral industrial locations was endorsed politically, economically, and in the view of society as a whole. Fraunhofer contributed to this with numerous initiatives. The energy crisis also posed significant challenges to Fraunhofer in 2022, both financially and organizationally. The advice Fraunhofer gave to policymakers helped agreements to be reached on emergency gas assistance, a gas and electricity price cap and a hardship clause for particularly energy-inten- sive research for the non-university research institutions. At the same time, defense and security policy in Germany has undergone a paradigm shift, which can be seen in the support for Ukraine by supplying arms and the special forces of the Bundeswehr. The Fraunhofer-Gesellschaft considers research and transfer activities in this area to be essential for future defense capability and is committed to permanently strengthening this policy area. In 2023, research funding in the defense and security sector, which has not yet been expanded, remains a major issue. Fraunhofer expands on individual discussions with selected stakeholders from the legislative and executive branches by running event formats that have a broad impact. The parliamentary breakfast format “Fraunhofer Morning Radar” resumed partial on-site meetings, with people attending the premises of the German Bundestag. Fraunhofer experts gave interested members of the German Bundestag their assess- ments on the topics of construction, cybersecurity, energy and resources, and defense. “Fraunhofer at Lunch” is another format that Fraunhofer established in 2022 for members of the Bundestag and representatives of the federal ministries to discuss subjects such as digital mobility, digital health research and bioeconomy. International activities Fraunhofer-Gesellschaft’s internationalization strategy aims to create scientific value within its own organization and to generate profitable effects for Germany and Europe, as well as in the respective partner country. Fraunhofer is succeeding in developing sustainable solutions to global challenges by coop- erating with the best in the world. Fraunhofer has developed various formats for generating excellent scientific content and cooperating with attractive international partners. The eight legally independent international Fraunhofer affiliates represent the most institutionalized form of such partnerships: Fraunhofer USA, Inc. Fraunhofer Austria Research GmbH Fraunhofer Italia Research Konsortial-GmbH Fraunhofer UK Research Ltd Fundación Fraunhofer Chile Research Associação Fraunhofer Portugal Research Stiftelsen Fraunhofer Chalmers Centrum för Industrimatematik (in Sweden) Fraunhofer Singapore Research Ltd. These international affiliates function as the legal entities supporting Fraunhofer research centers outside of Germany, which number 12 at the reporting date. These institutionalized Fraunhofer collaborations with local universities facilitate long- term research activities abroad. As their work is not profit-ori- ented, the international affiliates generally qualify for base funding from their country of domicile, and they are financed in a manner similar to the Fraunhofer funding model. With the Fraunhofer Centre for Applied and Integrated Security (CAIS), Fraunhofer Singapore repositioned itself in its field in 2022. Alongside its new partner institute Fraunhofer 11

Executive board’s report l 2022 management report Business report Total business volume Despite difficult global economic conditions, Fraunhofer can reflect on an economically successful 2022 following two years of crisis caused by COVID-19. In 2022, total business volume grew by 5 percent to around €3.0 billion, reaching the €3 billion threshold for the first time. Contract research accounted for 86 percent of this sum (around €2.6 billion) and represents the organization’s core activity. Around one third of contract research funding is provided by base funding from the German federal and state governments. Research of a long- term nature that falls outside the scope of this regular base funding is allocated to a new item, additional research funding, which amounted to €245 million in the reporting period. Major infrastructure capital expenditure amounted to €189 million. These three segments will be discussed in greater detail in the following sections. Business volume is based on the performance statement, which meets the requirements of the funding agencies. In the operating budget, personnel and non-personnel expens- es are recognized according to general accounting practice along with the change in the extraordinary item “License-fee revenue reserve for statutory purposes.” As capital expenditure is recognized at the amount incurred at the time of purchase, depreciation, amortization and impairment losses are not included in the performance statement. In 2022, Fraunhofer’s capital expenditure amounted to €482 million overall, a 16 per- cent share of the total business volume. Personnel expenses increased by 7 percent to €1,760 million. This is primarily due to a 1.8 percent increase to the pay scale that took effect on April 1, 2022, an increase in permanent staff of 3.7 percent, and an increase in personnel provisions of €34 million. At €818 million, non-personnel expenses were 2 percent higher than in the pre- vious year. The reserve was used during 2022 to cover liquidity requirements and €11 million net was released to provide funds to establish performance centers and equip Fraunhofer insti- tutes with photovoltaic systems. Fraunhofer total business volume in € million 2,760 2,832 306 159 270 164 2,551 255 128 2,915 3,049 189 245 234 163 2,398 2,518 2,615 2,168 2,295 2018 2019 2020 2021 2022 Major infrastructure capital expenditure Additional research funding Contract research 2022: Total business volume by budget in € million 3,049 1,760 482 –11 818 Personnel expenses Non-personnel expenses Change in reserves Capital expenditure 13

Additional research funding Additional research funding covers long-term research activ- ities that fall outside the scope of regular base funding. In addition to defense-related research, the National Research Center for Applied Cybersecurity ATHENE and the Research Fab Battery Cells FFB fall under additional research funding. ATHENE is operated jointly by the Fraunhofer Institutes for Secure Information Technology SIT and Computer Graphics Research IGD in collaboration with Technical University of Darmstadt and Darmstadt University of Applied Sciences. Its research focuses on the protection of critical infrastructures such as power and transportation, and the safeguarding of IT systems. The center applies an interdisciplinary approach, combining IT and engineering with legal and economic issues, psychology and ethics. ATHENE is funded by the BMBF and the state of Hessen in a ratio of 70:30 and recorded a budget of €21 million in 2022. With expenses of €82 million, the development of the Research Fab Battery Cells FFB continued to gain momen- tum in 2022. The BMBF is providing a total of €500 million in funding for this large-scale initiative through project finance. The state of North Rhine-Westphalia is providing an additional €200 million for the construction of a building to house the new facility in Münster. The Research Fab Battery Cells FFB is to become the center for developing modern and scalable battery cell production for Germany and Europe. In the field of defense research, Fraunhofer has pooled the research and development (R&D) activities of seven institutes that receive base funding and ongoing project funding from the German Federal Ministry of Defence (BMVg). The objective of these R&D activities is to provide people, infrastructures and the environment with the best possible protection against potential security threats resulting from natural disasters or military, technological, terrorist or criminal activity. Defense research grew by 7 percent to €142 million in 2022, mainly due to an increase of €8 million to €83 million in base funding from the BMVg. Project funding from the BMVg increased by €1 million to €59 million. Major infrastructure capital expenditure Major infrastructure capital expenditure comprises building projects and the purchase of scientific instruments and furni- ture to equip new facilities. At €189 million in 2022, invest- ments in construction and equipping of new facilities was below the previous year’s level. The amount spent on building projects decreased by €20 million to €152 million, of which €117 million related to major and €35 million to minor building projects. Investments in equipping of new facilities decreased Executive board’s report l 2022 management report Funding share in % 70.3 31.9 29.3 733 348 304 3.7 34 2018 2019 2020 2021 2022 Total project revenue* Industry Federal and state governments EU * Funding share from other revenue in 2022: 4.7%. Additional research funding in € million 245 82 21 59 83 159 2 12 77 68 128 60 68 164 163 11 14 65 15 15 58 74 75 2018 2019 2020 2021 2022 FFB project funding (BMBF) ATHENE base funding (BMBF and state of Hessen) BMVg project funding BMVg base funding 15

Executive board’s report l 2022 management report Liabilities rose by €109 million to €650 million. In addition to an increase of €63 million in unappropriated grants from federal and state governments from base funding and project billing, trade payables and other liabilities also rose by a total of €45 million. As a beneficiary of public funds, the Fraunhofer-Gesellschaft is subject to budgetary constraints that prohibit it from making use of the capital markets or of lines of credit with banks. Nevertheless, the organization’s liquidity is guaranteed at all times, as it can regularly call on cash payments from its fund- ing agencies under base funding arrangements and can use its reserves as needed. The Fraunhofer funding model stood up to the test in times of crisis and is built on a solid foundation. Shareholdings and spin-offs At the reporting date, the Fraunhofer-Gesellschaft held equity investments in a total of 82 companies operating in a diverse range of sectors. The transfer of technology to industry formed the focus of activities at 58 of the companies in the investment portfolio, while a further 18 equity investments were of a strategic nature. Equity investments also include six affiliated companies. In 2022, the Fraunhofer-Gesellschaft invested a total of €0.6 million in the acquisition of equity interests in shareholdings. The Fraunhofer-Gesellschaft added four companies to its investment portfolio and divested its shares in six. The total carrying amount of shareholdings (in cluding shares in affiliated companies) decreased to €9.2 mil lion (2021: €10.4 million). Income from the divestiture of shareholdings came to €11.1 million. Spin-offs are an integral part of Fraunhofer’s strategy for exploiting its industrial property rights. The Fraunhofer Venture department generally supports spin-off founders as they prepare to launch their new business. In individual cases, Fraunhofer takes a minority share in the spin-off under company law as part of its technology transfer activities. In 2022, Fraunhofer Venture provided support to 49 new spin-off projects; in total, 18 new spin-offs were established from the Fraunhofer-Gesellschaft. Fraunhofer has set itself the goal of increasing not only the number of spin-offs but also their pro- portional contribution to overall industrial revenue. The innova- tion hub AHEAD offers a comprehensive package of targeted measures and programs to help achieve this objective. Exploitation of intellectual property rights The Fraunhofer-Gesellschaft remains the leader among German research institutions in terms of its annual number of invention disclosures and new patent applications. However, the corresponding figures are lower than in previous years. In 2022, 443 invention disclosures were submitted by the Fraunhofer institutes. By contrast, there were between 700 and 800 inventions annually in previous years, with a total of 604 in 2021. One reason for this decline is the reduced on-site presence of staff at the institutes due to the COVID-19 pandemic. In line with the decline in invention disclosures, the number of patent applications claiming rights of priority has also fallen. In 2022, 375 patent applications claiming rights of priority were filed with the relevant patent offices. The Fraunhofer portfolio of active patent families, each of which comprises all intellectual property rights in different countries, remained close to the previous year’s figure at 7,414. Despite the temporary decline in the number of invention disclosures, the general strategy of the Fraunhofer institutes remains to secure valuable inventions permanently under patent law. To guarantee ongoing exploitation of intellectual property rights, Fraunhofer is continuing its efforts to group patents owned by different institutes into portfolios that are then offered to selected companies, licensed or, in some cases, sold. As a rule, Fraunhofer generates revenue from the commercial exploitation of intellectual property (IP) rights by way of license fees. In addition, IP can also be contributed to patent pools or exploited through the sale of IP. The most successful of these pools consist of patents for audio and video encoding. In conjunction with other parties from different countries that hold patents that are relevant to standards, Fraunhofer uses various patent pools to issue licenses on a worldwide basis. The income from these pools is reinvested in pre-compet- itive research, thus helping strengthen Germany’s position as a research hub for the long term. In 2022, Fraunhofer concluded 301 new IP licensing or sale agreements, bringing the total number of active agreements at the end of 2022 to 3,141. Revenue from the licensing and sale of IP amounted to €161 million and thus increased noticeably compared to the previous year due to an extraordinary effect arising from the sale of a larger patent portfolio. Of this, €160 million of the license-fee revenue came from industry and €1 million from other customers outside industry. Patent applications claiming rights of priority 612 623 638 521 375 2018 2019 2020 2021 2022 17

Executive board’s report l 2022 management report Corporate social responsibility issues Responsibilities of the Fraunhofer-Gesellschaft Corporate social responsibility (CSR), i.e. the accepted respon- sibility of contributing to sustainable development, affects almost all of Fraunhofer’s business and organizational units. The need to establish holistic coordination across all three sustainability dimensions became apparent with increas- ing demands from society, politics and business, as well as Fraunhofer’s own requirements for quality, future viability and contributions to sustainable development. The aim is for CSR or sustainability to become an inherent aspect of comprehen- sive overall management. This requires sustainability criteria and goals to be incorporated into the overall Fraunhofer strategy. There are five areas of responsibility for CSR fields of action: organizational management, research and devel- opment, resources and procurement, employees, and social commitment. The topics include operational aspects such as sustainable resource consumption, responsible HR manage- ment, as well as research activities and how they contribute to solving societal challenges. The structure required for this was defined and implemented in 2022. As a result, specific responsibilities and CSR issues were established in all execu- tive board units. This new approach means all board members of the Fraunhofer-Gesellschaft assume these responsibilities, committing themselves to sustainable development in general and to the areas assigned to their executive board unit. Since 2014, the Fraunhofer-Gesellschaft has regularly reported on the impact of its work on the environment and society, as well as on the associated opportunities and risks (CSR). The cor- responding targets, measures and key figures were communi- cated in sustainability and CSR reports in 2014, 2016 and 2019, and a new report was published in 2023. The executive board also established a CSR task force to more firmly consolidate the complex social responsibility requirements in Fraunhofer’s overall structure and work practices. For example, recently, the implementation of the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG) was coordinated effectively and efficiently within this new structure. As an internationally active research institution, Fraunhofer is committed to gaining knowledge through the free exchange of ideas across borders. Liberal democratic constitutional order is required to enable us to exchange points of view and arguments, and thus create knowledge. In light of current events in Ukraine and the resulting political developments, the Fraunhofer executive board, in line with other members of the Alliance of Science Organisations in Germany, has decided to freeze all ongoing projects and interaction with Russia and Belarus for the time being. Scientific thought and cooperation do not adhere to national borders. People seeking refuge are supported at Fraunhofer under the given framework. In cooperation with the Alexander von Humboldt Foundation, refugees are given access to employment opportunities at Fraunhofer. Realignment of the compliance management system The Fraunhofer-Gesellschaft believes that good corporate governance means not only complying with legal require- ments as a matter of course, but also ensuring values such as trust, respect and fairness are maintained, both internally and externally. Fraunhofer has been operating a compliance man- agement system (CMS) since 2010. It was successfully assessed and confirmed in the 2015/16 audit and has been continually developed since then in order to comply with increased regu- lations in the field of research. In light of increasingly complex legal requirements and the resulting need for stronger links between the legal department (2C) and the compliance man- agement function, the compliance office and its tasks were reorganized in 2022. The compliance management function was delegated to 2C by the chief compliance officer and is performed through the CMS. Topics such as the central man- agement of compliance risks in the matrix organization, more efficient guideline management and the further development of the Internal Control System (ICS) are being further expand- ed, which helps make the CMS more effective. Professional 19

Executive board’s report l 2022 management report In the energy sector, the InnoPush project “EnDaSpace PLATON — Platform Economy in the Application Context of Hydrogen” was partially transferred to EU level. In the “ENER- SHARE” project funded by Horizon Europe, three institutes have been working as part of an international consortium on the creation of a European energy data space since 2022. After taking part in a consultation on the digital transforma- tion of the energy system, Fraunhofer employees built on this by being invited to expert discussions with the EU Commission in 2022. This process gave rise to the EU Commission’s action plan on the digital transformation of the energy sector. Fraunhofer was also involved in the legislative process to amend the Renewable Energy Directive. The Fraunhofer thesis study “Digital transformation of the energy system” was published at EU level. The Fraunhofer-Zukunftsstiftung (Fraunhofer Future Foundation) also runs a funding program aligned with the UN’s Sustainable Development Goals (SDGs). With an annual funding volume of €5 million, it provides targeted support for projects by Fraunhofer researchers that help to make the world more environmentally friendly, socially equitable and financially sustainable. The following projects are examples from 2022: “WiBACK — Connecting the Unconnected” and “PreCare — Medical Care for Remote Areas in Africa.” The foundation is focusing increasingly on collaborative activities with civil soci- ety to facilitate the transfer of project results and is promoting collaboration between civil society, science and industry. Plans are in place to bolster dialog with citizens through participative events and schemes in the future. Socially responsible research Socially responsible research describes a research process that contributes to sustainable development on the basis of critical and systematic reflection on research issues, theoretical assumptions, methods, results and their communication and effects. In 2016, the output of the “Socially Responsible Research” project, which is funded by the German Federal Ministry of Education and Research (BMBF) and implemented under the leadership of Fraunhofer, was a framework for reflection on ethical and socially relevant aspects of projects in the field of research and development (R&D). In 2022, a follow-up project was launched internally at Fraunhofer as a result of this. The aim of this project was to directly implement the recommen- dations made at that time in all Fraunhofer R&D projects and to support project participants in practice. One of the criteria developed at that time is, for example, reflection on the effects of the project results, i.e. their impact assessment and risk assessment. This is already rooted in an updated Fraunhofer internal regulation on good scientific practice. In addition, scientists are made more aware of such (new) ethical issues and empowered accordingly. Other criteria are already components of quality-assured project management. Even greater consideration must be given to cooperation with scien- tific partners from other disciplines to achieve the project goal (interdisciplinarity) or integration, if necessary, of later users into the project (transdisciplinarity), for example. The aim of this new internal project is to further increase the excellence of Fraunhofer projects with the support offered to project teams (guidelines, workshops, online tools). An important way to make innovations relevant, helpful and social is through social negotiation processes, transparency, dialogue and participation. Participatory research and innova- tion processes complement the focus on economic needs in Fraunhofer research. As part of the current EU project “FRAN- CIS — Frugal Innovation by Citizens for Citizens,” citizens are actively involved in research and innovation processes. To this end, the Fraunhofer Institute for Industrial Engineering IAO and the Fraunhofer Information Center for Planning and Building IRB are initiating Open Innovation Challenges together with other partners. Interested users from marginalized popu- lation groups such as the socially deprived or elderly are called upon to develop ideas for high-quality, simple and low-cost (in short, frugal) innovations and put these into practice together with industrial partners (funding period: 2021–2024). Employees At year-end 2022, Fraunhofer had 30,350 employees, 22,430 of whom were research, technical or administrative staff (RTA staff), 7,415 students, and 505 trainees. On its way to creating a flexible, cooperative, customer-ori- ented working and research environment for self-determined employees, Fraunhofer can look back on a positive year at the end of 2022. The “New Work@ Fraunhofer” initiative delivers strategically important value in terms of future viability: This concerns, in particular, the organization’s innovative strength, employer attractiveness and resilience. Between 2020 and 2022, around 45 institutes embedded New Work in their organization through ten series of modules (INITIATE, SYS- TEMATIZE and DEVELOP). Different priorities have been set in the institutes: from creating the conditions for time- and location-flexible working to introducing agile working meth- ods and designing new room layouts adapted to new work routines. A total of around 15,000 employees are now directly or indirectly involved in New Work activities. The Fraunhofer-Gesellschaft’s overarching mission of “Trans- fer via individuals” also continues to manifest itself in the “Careers with Fraunhofer” approach, which is based on a comprehensive HR development strategy aimed at supporting 21

Executive board’s report l 2022 management report program that has been a central pillar for the promotion of more equal opportunities in research and leadership at Fraunhofer since 2013. In this time, over 724 female research- ers at Fraunhofer have been able to take advantage of the comprehensive support for career and research time, as well as qualification and networking formats, to achieve their career goals (e.g. completing their doctorate, further developing their leadership skills or strengthening their scientific visibility). The program is subject to regular evaluation and adjustment. In 2022, 72 female scientists received support. At the end of 2022, the share of employees with severe disabil- ities was 2.4 percent (2021: 2.6 percent). The Fraunhofer-Ge- sellschaft has set itself the goal of expanding its commitment to promoting inclusion and making an extra effort to attract, develop and retain people with disabilities. The Corporate Culture — Diversity department has also been developing an overall strategy since 2022. Equal opportunity principles form the foundation of the inno- vative strength of the Fraunhofer-Gesellschaft and represent an essential component of our entire organizational culture. Fraunhofer therefore welcomes and supports the EU Com- mission’s promotion of equal opportunities in research and innovation. For example, Fraunhofer’s Gender Equality Plan has been introduced as a new funding criterion for research organizations participating in the Horizon Europe program since 2022 and is updated annually. In 2022, Fraunhofer, together with the Max Planck Society and other partner orga- nizations, developed the joint Inclusion Initiative. The main aim of this initiative is to set an example for inclusion in the field of research on the International Day of Disabled Persons 2023 and to improve the visibility of commitment to inclusion. The Fraunhofer-Gesellschaft considers unconscious bias to be key for shaping a culture of equal opportunities and diversity. Our overall strategy for reflecting, being more aware of our actions and reducing unconscious bias aims to make employees and managers more aware of the effect of unconscious bias by training them to deal with it and reducing its negative effects. In order to make employees more aware of unconscious bias, the e-learning program “Fairer decisions in everyday research — a digital training module on dealing with unconscious bias more consciously” was developed and made available to all institutes in 2022. The measures and tools include a fun exercise on personnel selection, for example. The Diversity Funding Program was established 11 years ago in order to support institutes in the implementation of new measures to support equal opportunities and diversity. In addition to financial support for work-life-balance projects, there is also funding for institute projects that promote equal opportunities for women and men, that include employees with disabilities and, since 2019, that promote intercultural cooperation. Since the start of the program, a total of 215 applications from institutes have been funded at a total cost of €2 million. In 2021, the Fraunhofer-wide framework agreement with pme Familienservice covering services in emergency child- care, home care and elder care as well as life coaching was extended for a further two years. Since then, the use of the pme Akademie, which includes webinars, e-learning pro- grams and tips for living mindfully, has also been included. In 2022, in addition to 13 cases where childcare was used and 50 requests for home- and eldercare, life coaching was used most frequently, with 122 requests. The range of services offered was expanded as an extraordinary measure to include various forms of assistance in response to the war in Ukraine. This was designed to support employees and their relatives who had been affected by the war. For example, since the start of the war, those affected have been able to access a 24-hour hotline, counselling in English, Ukrainian and Russian, and crisis intervention for support with any concerns and fears they may have. The re-certification of the Fraunhofer family logo was postponed to 2023 because of the COVID-19 pan- demic. Since 2019, a total of 20 institutes have obtained the Family Logo. In the Fraunhofer-specific cascade model, Fraunhofer set transparent goals for increasing the proportion of female scientists at the various organizational levels by 2025. At level 3 (scientific employees without management responsibilities), the target for the year was marginally missed with the pro- portion of women reaching 25 percent (target: 25.1 percent). The target at level 2 was reached once again in 2022 with the proportion of female researchers at 17.8 percent. In contrast, the target of having 15 percent of top management positions held by women was missed by two percentage points, despite all efforts. Since 2020, Fraunhofer has been working with a sourcing team to attract more women to the institute man- agement level. Since then, the sourcing team has identified over 1,600 interested candidates domestically and internation- ally and has contacted over 780 of them. Out of 12 completed appointments handled by the sourcing team, nine vacancies went to actively approached female candidates, two were filled by men, and one appointment was cancelled. The sourc- ing team has also been assisting increasingly with the search for potential female candidates for expert reports, audits, appointment committees, conferences and advisory boards for some time now. Fraunhofer is also striving to increase the proportion of women on the advisory boards at the institutes by four percentage points each year. The measures adopted by the Research Coordination department and the efforts being made by the institute are having an impact: The target for 2022 was achieved, with the proportion of women on the institutes’ advisory boards reaching 31.9 percent (2021: 26.5 percent). 23

Executive board’s report l 2022 management report * Since the decision to offset air travel in 2019, flight-related emissions have been calculated using the VDR standard with a Radiative Forcing Index (RFI) of 2.7 in order to take into account the total climate impact of flights taken by Fraunhofer employees. In the interests of transparency, these are report- ed accordingly. In previous reports, the lower values of CO2 emissions were presented according to GRI/GHG. 2525

Modern, high-performance IT systems help to streamline busi- ness processes in research management. Converting the exist- ing ERP system Sigma to the future-oriented SAP S/4HANA system leads not only to opportunities, but also to challenges until the processes are optimally adapted to the special features of a research organization of this size and then implemented. Increasing the efficiency of purchasing processes and ensuring that they are compliant in order to counteract the loss of funds and the impact on ratings remains a priority. Another challenge is the further development of the customized SAP tools for invoicing publicly-funded research projects. The SAP project “Level Up” was implemented throughout Fraunhofer to ensure stability and increase efficiency. The reputation of the Fraunhofer-Gesellschaft and its brand is one of our most valuable assets and forms the basis for long-term economic success. We believe responsible corporate governance means consistently complying with legal and fund- ing requirements. Good scientific practice is a matter of course for us. We are also guided by values such as trust, respect and fairness, both internally and externally. We understand that reputational damage caused by the mis- conduct of some individuals can never be completely ruled out. We have therefore decided to further develop our compliance system with the aim of mitigating potential risks and being able to identify and counter misconduct even more effectively (see p. 19/20 Responsibilities of the Fraunhofer-Gesellschaft, Realignment of the compliance management system). Negative reactions in the media or from society can damage the reputation of the Fraunhofer-Gesellschaft and its brand. In order to identify such risks as early as possible and minimize their impact, we are focused on continuously developing com- munication, brand management and dedicated monitoring. Executive board’s report l 2022 management report system in its own business operations and in its supply chain. The due diligence required for this is adapted to the risk situation in compliance programs within the framework of the compliance management system, in accordance with the legal requirements. Further progress was made in 2022 in terms of the organization-wide integration of sustainability criteria into corporate procurement through different measures, which included mandatory training for all procurement personnel. The executive board adopted a declaration of principles on the human rights strategy at the end of 2022. Declaration of Principles for the Respect of Human Rights Secure information handling is of fundamental importance to the continued existence of a knowledge-based research organization. At present, the risk of increasing cyber attacks and espionage activities has once again risen significantly in light of the worsening international conflict situation. However, these risks are countered at Fraunhofer with targeted mea- sures and by refining them in the executive board project on cybersecurity. Cyclic risk management process Analysis and assessment Business operations risk comprises those types of risk that may arise from research and administration processes, or from conducting specific research projects. Identification The need to establish holistic coordination across all three sustainability dimensions and integrate it in the overall strategy of our organization became apparent with increas- ing demands from society, policymakers and the economy, as well as Fraunhofer’s own requirements for quality, future viability and the contribution to sustainable development. In this regard, the previous activities in the areas of Corporate Social Responsibility (CSR) and Compliance were reviewed and responsibilities for specific CSR topics were assigned to all exe- cutive board units. A particular CSR and compliance issue here is the German Supply Chain Due Diligence Act (Lieferkettensorg- faltspflichtengesetz, LkSG). When the law came into effect in 2023, Fraunhofer was also subject to the legal requirements for operating a human rights and environmental risk management Monitoring Control Reporting Improvement/further development process 27

energy markets and other economic risks will affect Fraunhofer’s business performance. The executive board initiated the Emerging stronger from the crisis strategy project as early as 2021 in order to ensure the long-term expansion of corporate cooperation. This project will explore the future viability and revenue structure of the Fraunhofer R&D portfolio up to 2030. The results will be implemented from 2023 onwards. To this end, the Group portfolios are being further refined to include their subsidiary service offerings and the necessary competencies. Coherent services are developed throughout the value chain. The basis for this is synergies in competencies and intelligent infrastruc- ture pooling in the form of technology platforms. For this to succeed, strategic portfolio coordination within the Group, between the alliances and within the organization as a whole will be stepped up. In order to advance applied research on quantum comput- ing, the Fraunhofer-Gesellschaft founded the centrally coordi- nated Fraunhofer Competence Network Quantum Computing with corresponding hardware infrastructure as early as 2020: an “IBM Quantum System One” in Ehningen, Baden-Württem- berg, with 27 superconducting qubits and a quantum volume of 64. The contractual regulations for the operation of the quantum computer are particularly decisive. They are subject to German law and will comply with European and German data protection regulations, while all project and user data shall remain in Germany at all times. In this respect, Fraunhofer is acting as an enabler for the entire German quantum com- puting landscape. This is because Fraunhofer not only offers its employees access to the system, but also enables partners from industry and research to use it. Since the current contract with IBM ends at the beginning of 2024, Fraunhofer needs to decide in 2023 whether to continue this cooperation or to negotiate with other providers of quantum computers that have emerged in the meantime. With the new EU funding period (2021–2027), the 9th EU Research Framework Programme Horizon Europe started its active funding phase in 2022. For the first time, the program is focused on EU missions, which aim to promote social change across sectors and come up with measurable solutions within a defined period of time. In line with the Fraunhofer mission, a variety of opportunities for participation are opening up. This applies in particular to the program pillar “Global challenges and European industrial competitiveness”, which focuses on future-relevant key technologies. It was clearly already suitable in 2022 as there were 242 newly approved cooperation proj- ects with Fraunhofer participation and a total of 2,628 project partners; Fraunhofer is responsible for project coordination on 24 projects. This trend of intense participation in EU projects is expected to continue in 2023. Executive board’s report l 2022 management report The Fraunhofer institutes and research units also provide rele- vant support for the German Federal Ministry of Education and Research’s Strategy for the Future of Research and Innova- tion, which was adopted in February 2023. Many initiatives and projects contribute to digital and technological sovereignty in Germany and Europe. These include the Green ICT@FMD alliance for resource-efficient microelectronics, various chip developments for applications ranging from high-performance computing to post-quantum cryptography, research work and services for national cyber security, and the establishment of a first node in Aachen for a European quantum internet. Since 2022, additional units have been coming into operation to improve health and food security. A couple of examples of this are the Immunology, Infection and Pandemic Research institute branch of the Fraunhofer Institute for Translational Medi- cine and Pharmacology ITMP at the Penzberg location, and the Fraunhofer Center for Biogenic Value Creatin and Smart Farming with locations in Bavaria and Mecklenburg-Vorpom- mern. The Fraunhofer AVIATION & SPACE association helps to strengthen critical infrastructures, especially with devel- opments in New Space, and the interdisciplinary Fraunhofer research group “Smart Ocean Technologies” in Rostock oper- ates with the aim of creating a balance between economic use and marine protection. Fraunhofer researchers presented a bioeconomy roadmap at the end of 2022. The recommend- ed actions outline a way in which the performance of German industry can be maintained and increased even in times of multiple global crises and challenges, while at the same time contributing to achieving the climate targets. On numerous delegation visits to explore and conclude new energy partner- ships, Fraunhofer experts supported steps to transform the energy system and build a hydrogen economy. Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e. V. The executive board Prof. Reimund Neugebauer (until May 25, 2023) Prof. Alexander Kurz Elisabeth Ewen Prof. Axel Müller-Groeling Dr. Sandra Krey 29

Executive board’s report I The senate’s report on the financial year 2022 Executive board’s report I The senate’s report on the financial year 2022 The dependencies in microelectronics became just as clear during the years of crisis. With its portfolio of experts from all institutes pooled in the Research Fab Microelectronics Germany (FMD), Fraunhofer represents a pillar of European sovereignty in this key field, particularly within the framework of the EU Chips Act. In 2022, the German federal government once again substantially strengthened this capability with the “Quantum and Neuromorphic Computing (FMD-QNC)” project. The project combines basic research, application and industrial production, supplemented by a new quality of specialist train- ing in a microelectronics academy. The recent breakthroughs on inertial confinement fusion in the US show that Fraunhofer’s mission stretches beyond the trans- fer of innovation as Fraunhofer provided concrete technologi- cal preliminary work for the fundamental experiments that led to these breakthroughs. In 2023, Fraunhofer will establish a team of fusion technology experts to enable German compa- nies to connect with top international researchers in the field of this future technology. Fraunhofer is also supporting the transformation of former coal mining areas with technological initiatives. New innovation ecosystems are to be created in the affected regions by means of technological paths for defos- silizing the energy/heating market and digitizing production through sensor technology and artificial intelligence, as well as solutions for the circular economy, especially with a view to the raw materials industry. This is how the Fraunhofer-Gesellschaft, together with its important partners from science, industry and politics, is sig- nificantly contributing to a sustainable, high-performance and sovereign research and innovation system of the future. The annual financial statements and the management report of the Fraunhofer-Gesellschaft have again received an unqualified audit opinion from the appointed auditing company. In 2022, the senate fulfilled the duties entrusted to it under the Statutes of the Fraunhofer-Gesellschaft. It convened twice in the course of the 2022 financial year: on May 19 and on October 13. Both sessions took place in a hybrid format. The main resolutions adopted in accordance with the Statutes concerned the structure of the Fraunhofer-Gesellschaft and matters relating to its executive board: Based on the further development of the Fraunhofer-Ge- sellschaft’s executive board structure, a resolution adopted in 2021, the senate elected three new executive vice pres- idents at its May 2022 meeting on the recommendation of a senate committee for the election and re-election of executive vice presidents commissioned for this purpose: Prof. Axel Müller-Groeling for the Research Infrastructures and Digital Transformation unit (VB), Elisabeth Ewen for the Human Resources, Corporate Culture and Legal Affairs department (VC) and Dr. Sandra Krey for the Finances and Controlling executive unit (VD). The new executive vice presidents took office on August 1, 2022. At the senate meeting on October 13, 2022, the senate took note of the information provided by the president, Prof. Reimund Neugebauer, on his intended retirement from the executive board of the Fraunhofer- Gesellschaft on September 30, 2023. Subsequently, the senate established a senate committee for the election and re-election of executive vice presidents and instructed it to fill the position of president and executive vice president for Corporate Strategy, Research and Communications by proposing a suitable candidate no later than the senate meeting in May 2023. The senate also decided on changes to its own manage- ment structure in accordance with the Statutes. After nine years as a member of the Fraunhofer-Gesellschaft senate — around seven of them as honorary senate chair — I, Prof. Heinz Jörg Fuhrmann, retired from this committee on December 31, 2022, in accordance with the statutes and received the sculpture “The Fraunhofer” as a special award at the senate meeting on October 13. I am as grateful to the Fraunhofer-Gesellschaft as I am to the senate and the executive board for their collegial, constructive cooperation, even in difficult situations. The senate elected their new chair at this October meeting. Hildegard Müller, president of the German Association of the Automotive Industry (VDA), took up the position with effect from January 1, 2023. Kerstin Grosse, managing director of DEROSSI invest GmbH, and Prof. Oliver Zipse, chair of the board of man- agement of BMW AG, were elected by the senate as senate vice-chairs with a term of office starting on January 1, 2023. In 2022, the general meeting adopted amendments to the Fraunhofer Statutes, which were noted with approval by the senate. These included, inter alia, the introduction of modern means of communication to ensure that resolutions can be passed and elections can take place in a legally com- pliant manner in both virtual and hybrid formats. The senate would like to thank the executive board and the Fraunhofer-Gesellschaft employees for their great commitment and successful work in 2022. Prof Heinz Jörg Fuhrmann Chair of the Fraunhofer Senate until December 31, 2022 31

New senate member Prof Ulrich Rüdiger Rector | RWTH Aachen University Ulrich Rüdiger has been the rector at RWTH Aachen University since 2018. This is a return to his alma mater for the physicist. After his doctorate on magnetooptic storage materials, Rüdiger became a post-doctoral fellow at New York University. During his research stay in the USA, he also worked at the IBM Research Laboratory and the Cornell Nanofabrication Facility (CNF). In 2002, Rüdiger completed his postdoctoral lecture qualification on spin-dependent transport phenomena and then went on to become a professor of experimental physics at the University of Konstanz. He was elected as rector there in 2009 and held this position until he moved to Aachen in 2018. “I like the idea of shaping and developing a leading technical university — especially one that uses interdisciplinary research to develop solutions to global technical and social challenges,” says Rüdiger. awarded the Ordre des Palmes Académiques, one of the most prestigious French honors, for his service to science. He also received honorary doctorates from Taras Shevchenko University and Kyiv National Economic University, both in Kiev. Rüdiger believes it is important to build bridges from basic knowledge to application and on to the final product, while also holding social discourse with the scientific field in order to manage the fundamental transformation processes. These are challenging tasks that the Fraunhofer-Gesellschaft is also addressing. For instance, RWTH Aachen University and Fraunhofer, among others, founded the Fraunhofer Center for Digital Energy. The purpose of this center is to lay the foun- dations for technically reliable, hacker-proof and economically attractive digitalized energy infrastructure in the Rhenish mining region and to put them into operation. It also cooper- ates closely with the Fraunhofer institutes based in Aachen. Ulrich Rüdiger supports science management processes by serving on several boards of directors, advisory boards, working groups and councils. As such, he was vice president of the German Rectors’ Conference (HRK) for research and early career researchers from 2014 to 2018. At the same time, he was a member of the HRK’s Permanent Commission for Research in Germany and Europe. In 2012, Rüdiger was y d n a n W i r e t e P : o t o h P 33 “I like the idea of shaping and developing a leading technical university — especially one that uses inter- disciplinary research to develop solutions to global technical and social challenges.”

Executive board’s report I Review of Fraunhofer research Review of Fraunhofer research New initiatives and infrastructures Fraunhofer world records Projects and results Awards 2022 People in research Transfer activities 2022 35

Review of Fraunhofer research I New initiatives and infrastructures Heat Pump Initiative for Germany From 2024, a total of 500,000 heat pumps are to be installed in Germany per year as part of the Heat Pump Initiative, which was launched in June 2022. The German Federal Ministry for Economic Affairs and Climate Action (BMWK) and the German Federal Ministry for Housing, Urban Development and Building (BMWSB) initiated the first heat pump summit in June 2022. A coalition for action was formed to accelerate the heat supply transformation by means of heat pumps. Fraunhofer is sup- porting the German federal government’s ramp-up program for heat pumps. For example, scientists at the Fraunhofer Institute for Solar Energy Systems ISE conducted a field study to investigate the efficiency of heat pumps in existing buildings. The result? Even non-refurbished buildings with radiators (no underfloor heating systems) can, in principle, be heated with heat pumps without the risk of a cost explosion. According to the Near-Surface Geothermal Systems roadmap, 75 percent of the cumulative useful heat demand for space heating and hot water in Germany could be covered by geothermal heat pumps. The same systems could also provide the bulk of the cooling demand, which is rising as a result of climatic conditions. The roadmap was created at the Fraunhofer Research Institution for Energy Infrastructures and Geothermal Systems IEG. Deep Geothermal Energy for Germany roadmap The German federal government has pledged that half of municipal heating will come from climate-neutral sources by 2030. The heating sector accounts for 56 percent of the national energy demand and currently only 15 percent of heating is generated from renewable sources. The advantages of geothermal energy lie in its base load capacity, its sustain- ability, the fact that it is generally available from local sources and its minimal space requirements, even in confined urban conditions. Under the leadership of the Fraunhofer Research Institution for Energy Infrastructures and Geothermal Systems IEG, the “Roadmap for Deep Geothermal Energy for Germany — Recommended Actions for Policymakers, Industry and Science for a Successful Heat Transition” was established in collaboration with the Helmholtz Association. Research initiative with the United Arab Emirates In the presence of the German Federal Minister for Economic Affairs and Climate Action, Dr. Robert Habeck, Prof. Mario Ragwitz from the Fraunhofer Research Institution for Energy Infrastructures and Geothermal Systems IEG signed, on behalf of Fraunhofer, a memorandum of understanding with the Ministry of Energy and Infrastructure (MOEI) of the United Arab Emirates (UAE) in Abu Dhabi. Part of the memorandum of understanding is the promotion of joint R&D projects on energy and sustainability. Nuclear fusion If scientists succeed in their quest to harness nuclear fusion, the energy supply will be completely revolutionized. In 2022, major breakthroughs were made in inertial fusion energy (IFE): In a world first, the National Ignition Facility at Lawrence Livermore National Lab (LLNL) in California, US, achieved fusion ignition, creating a burning plasma state. In December 2022, 3.15 megajoules (MJ) of fusion energy were produced from 2.05 MJ of laser input energy. To pave the way for the first fusion power plants, the German Federal Ministry of Education and Research (BMBF) is expanding its corresponding research activities and has established a group of experts for this purpose. Prof. Constantin Häfner is head of the group. The physicist was appointed commissioner of fusion research at the Fraunhofer-Gesellschaft in July 2022 and has been director of the Fraunhofer Institute for Laser Technology ILT since November 2019. Häfner was previously the program direc- tor for Advanced Photon Technologies at the LLNL National Ignition Facility. The BMBF group of experts, comprising seven researchers from Germany and abroad, is tasked with investi- gating how German research and the start-up scene can jointly contribute to global developments in nuclear fusion. The first memorandum is expected in the spring of 2023. With its lighthouse projects, Fraunhofer is setting strategic priorities for developing specific solutions for the benefit of Germany as a business location. The topics focus on the requirements of the economy. Find out more about lighthouse projects and other higher-level initiatives here 37

Review of Fraunhofer research I Fraunhofer world records 2022 Demonstrating a novel approach to measuring magnetic fields Experiments by the Fraunhofer Institute for Applied Solid State Physics IAF and an international consortium succeeded in demonstrating the theoretical prin- ciple of laser threshold magnetometry for the first time. In this groundbreaking project, diamonds with a high density of nitrogen-vacancy (NV) centers were used in a laser system, demonstrat- ing the world’s first measurement of magnetic-field-dependent stimulated emission. Researchers also observed a physical process previously unknown in NV diamonds: the absorption of red light induced by green laser irradiation. The consortium was the first to use NV diamond as a laser medium, allowing them to successfully increase signal power and even set a new record for contrast. The magnetic field-dependent emission was found to have a contrast rate of 33 percent and a maximum output power in the milliwatt range. This only works with diamonds that have both a very high density of NV centers and good optical properties. More information A demonstrator for a laser threshold magnetometer Photo: Fraunhofer IAF Wireless data transmission in the 155 to 175 Ghz frequency range Photo: Fraunhofer HHI Range record for future 6G mobile communications Just like 5G, the mobile communications standard of the future, 6G, relies on a modified infrastructure to transmit high data rates in real time. Rather than macrocells, 6G requires microcells for coverage; experts currently consider the sub-terahertz spectrum (155 to 175 gigahertz) to be a likely frequency range. In this scenario, outdoor urban macrocells would be positioned only about 250 meters apart. The Fraunhofer Institute for Telecommunications, Hein- rich-Hertz-Institut, HHI, the Fraunhofer Institute for Applied Solid State Physics IAF and their industry partner LG achieved a transmission distance of 100 meters for 6G sub-terahertz data during outdoor testing in August 2021. The project partners had already reached the impressive distance of 320 meters during tests conducted at Fraunhofer HHI in September 2022. By using new types of amplifiers on the transmitter and receiver, the technicians were able to more than triple the transmission difference. These new technologies, which have been integrated into LG’s latest module design, are ideally suited for future integrated circuit manufac- turing — a key factor on the road to commercialization. More information 3939 39 Telescope for quantum communication secure from eavesdropping Photo: Fraunhofer IOF Generating quantum keys at multiple kilobytes per second on an international level Quantum encryption ensures commu- nication that is absolutely secure from eavesdropping. Since 2021, a local test route has been operated between the Fraunhofer Institute for Applied Optics and Precision Engineering IOF and the Jena municipal utility company, to facilitate the study of quantum key exchanging via free beam — in other words, through the air. Thanks to its telescopes, Alice and Bob, the test route allows researchers to quickly and easily test the latest systems for quantum com- munication in a real environment — such as photon sources, telescope optics or special measurement systems. The sci- entists achieved key generation rates in the range of multiple kilobits per second. This generation rate is among the high- est in the world for exchanging quantum keys via free beam within an urban area. It would be enough to ensure highly secure encryption of phone calls in a city without issue. More information

Review of Fraunhofer research I Projects and results 2022 natural gas from the Netherlands to high-calo- rific natural gas from Norway — will not work for hydrogen. Producing hydrogen from methanol to power shipping Shipping is one of the fastest-growing sources of greenhouse gases, and this is leading ship- builders and operators on a search for envi- ronmentally friendly alternative propulsion sys- tems. Researchers at Fraunhofer have joined forces with partners in an EU-funded project to develop the HyMethShip concept, in which hydrogen is obtained from methanol. The energy density of methanol is twice as high as liquid hydrogen, so the on-board methanol tanks would only need to be half the size. Not only that, but transporting methanol is significantly safer than transporting hydrogen. As a result of the provisions of the European Green Deal, cruise ship operators may also be interested in this propulsion system. Methanol acts as a liquid hydrogen carrier that can be pumped into the ship at port. On board, hydrogen is obtained from the methanol through a steam reforming process and is used for ship propulsion. The system’s technical centerpiece is the reactor. The meth- anol is mixed with water, then evaporated by applying heat and fed into the preheated reactor, where the mix of methanol and water is converted into hydrogen and CO2. Research- ers at the Fraunhofer Institute for Ceramic Technologies and Systems IKTS have devel- oped a carbon-coated ceramic membrane that can be used to separate the hydrogen from the other gases and in constructing the reac- tor. The hydrogen molecules escape through the extremely fine pores of the membrane, while the larger carbon dioxide gas molecules are retained. The researchers managed to scale the membrane from its original length of just 105 millimeters up to 500 millimeters. Thanks to the membrane, the hydrogen that is fed into the engine has a purity level of over 90 percent. The engine in question is a classic combustion model; however, it does not produce emissions that harm the climate. The developers have also employed some other construction tricks to optimize the prospec- tive process, such as using waste heat from the engine to heat the reactor. What’s more, after the reactor process, the remaining CO2 is liquefied and fed into the empty methanol tanks. When the ship arrives at port, it is fed into tanks and can then be used for the next methanol synthesis process. Resource Efficiency and Climate Technologies Exploring geothermal energy with a micro drilling turbine Geothermal energy has enormous potential to help in the fight against climate change. The water, which can reach temperatures of up to 200 degrees Celsius and be found at depths of up to 5,000 meters, is pumped above ground via boreholes, where it is used for purposes such as driving steam turbines to generate electricity or heating buildings using heat pump systems. Then the cooled water flows back into the earth's crust via a second well, where it is heated up again in the hot rock. However, drilling these boreholes is expensive and success is not guaranteed, as the explo- ration risk — i.e., the risk of not finding hot water — is high. The patent-pending Micro Turbine Drilling (MTD®) technology is intend- ed to increase the chances of success during drilling and improve flow rates. The approach: The mini drill goes down the boreholes and drills out into the surrounding earth to depths of multiple meters. This pushes into the surrounding cracks and fissures and opens them up for hot water extraction. The key component of the MTD® is a micro boring tur- bine with a diameter of 36 millimeters and a length of 100 millimeters. The drill bit consists of a tungsten carbide matrix with diamond punches. It can grind through crystalline rock like granite at a rate of 80,000 revolutions per minute; it can also cut through the steel that is used for lining boreholes. Thanks to its deflection saddle, the turbine can drill out from the main bore at an angle of around 45 degrees. The drilling tool uses this to open up new cracks and fissures with hot water around the main well. The MTD® was devel- oped at the Fraunhofer Research Institution Top: The integrated mem- branes in the module for a reactor separate the hydrogen from the carbon dioxide Photo: Fraunhofer IKTS Bottom: A micro drilling tur- bine for geothermal systems Image: Fraunhofer IEG 41

Review of Fraunhofer research I Projects and results 2022 sustainability and formaldehyde emissions. In addition, this recycled and recyclable “super- wood” construction material can also be used as an alternative to plasterboard in interior architecture and the interiors of vehicles such as RVs and trailer homes. To begin with, this collaborative initiative between Fraunhofer WKI and designer Sofia Souidi was funded by the Fraunhofer Science, Art and Design network. The IKEA Foundation provided follow-up funding until mid-2022. Technologies for adapting to climate change In multiple projects under the umbrella of the Morgenstadt® (City of the Future) initiative (a registered trademark of the Fraunhofer-Ge- sellschaft), researchers are investigating the consequences of climate change and develop- ing measures for adapting to them. For exam- ple, in Kochi (India), Saltillo (Mexico) and Piura (Peru), scientists are working to adapt city analysis measures to the conditions in newly industrialized countries. This project is being funded through the International Climate Ini- tiative by the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV). The effects of climate change are already being felt on a massive level in the coastal city of Kochi in south-west India. The inci- dence of heat islands in this concrete jungle is increasing, along with flooding due to severe precipitation events. In 2018 and 2019, flooding and landslides caused many deaths and significant damage across the entire city. This is why one of the 15 proposed measures suggests developing a sustainable district with integrated solutions for generating renew- able energy, reducing flood risks and treating sewage on a decentralized basis. The district would have green infrastructures for storing rainwater, reducing the strain on sewage systems during severe precipitation events and providing cooling through evaporation. As part of a demonstration project at a govern- ment higher secondary school in a district of Kochi, Fraunhofer researchers and regional partners are testing out specific technologies. A special cool roof coating is being applied to sections of the school’s roof, greenery is being planted on parts of the facade and a pavilion with rooftop foliage is being constructed in the schoolyard for the students’ break times. The sewage from the school, which used to seep out at the site, is now being treated with an eco-friendly process so that it can be used to water the green spaces. In a neighboring district of the city, photovoltaic modules are being installed on 20 rooftops and con- nected using smart technology, so that the energy supply is more self-sufficient and climate-friendly. Digital Healthcare T cells wage war on blood, breast and lung cancer cells Chimeric antigen receptor T-cell therapy (CAR T-cell therapy for short) is an innovative form of immunotherapy for treating cancer patients. In this form of treatment, genetic engineering is used to turn T lymphocytes taken from the patient into CAR-T cells. These cells’ receptors can detect specific antigens on the surface of degenerated cells and trigger a process that destroys them — independent- ly of the immune system’s natural ability to differentiate between self and nonself, which cancer cells can often circumvent. Researchers at the University Hospital of Würzburg have developed a special chimeric antigen receptor to detect the ROR1 molecule that is expressed by cancer cells in leukemia and breast and lung cancer. The genetic material for this special CAR is implanted in the T cells’ genome by means of a non-viral genetic process. This reprograms the T cells so that they identify the ROR1-positive cancer cells as “nonself” and destroy them. The Fraunhofer Institute for Cell Therapy and Immunology IZI produced many of the batches of CAR T-cell products for testing and validation. These products were used to optimize the demanding manufacturing process in line with pharmaceutical quality standards (good manufacturing practice, or GMP) and update the assortment list accord- ing to the German Medicinal Products Act Top: A district-wide solution in Kochi, India Photo: Fraunhofer Bottom: A scientist selects helper T cells and cytotoxic T cells in one of the first steps toward producing CAR-T cells Photo: Fraunhofer IZI Click here to learn more about the Bioeconomy research field 4343

Review of Fraunhofer research I Projects and results 2022 of secure AI. In this project, researchers from the Fraunhofer Institute for Intelligent Analysis and Information Systems IAIS have teamed up with partners from the German Institute for Standardization (DIN) and the German Federal Office for Information Security (BSI) to develop standardized testing methods with the “made in Germany” label. Fraunhofer IAIS released an AI assessment catalog back in 2021. This practical document provides companies with a tool that they can use to evaluate and improve their own systems right from the develop- ment stage, so as to be prepared for future regulatory requirements. Independent testing organizations can also use the assessment catalog as a basis for product testing. Some industry partners have already launched concrete testing services based on Fraunhofer IAIS expertise. Since mid-2022, Fraunhofer IAIS have been supporting Munich Re’s CertAI service as a technical partner. This testing service for AI applications enables companies to evaluate AI systems in terms of trustworthi- ness, and thus develop, use or purchase them as needed for their business success. In addi- tion to defining and operationalizing quality requirements, the AI experts at Fraunhofer IAIS are also ensuring that the AI system evaluations conducted through the CertAI service reflect the latest progress in research and development. Inventory planning helps local pharmacies Even in 2020, the Federal Union of German Associations of Pharmacists (ABDA) was reporting a steady decline in the number of pharmacies in Germany. However, a direct supply of medications and the opportunity to consult with a specialist in person are still cor- nerstones of the healthcare infrastructure, and not just for older people. Inventory planning is the decisive factor in enabling local pharma- cies to compete with their online equivalents. This is why the Supply Chain Services working group at the Fraunhofer Institute for Integrat- ed Circuits IIS has been researching ways of optimizing this process since the beginning of 2022. The group is concentrating on providing AI-powered predictions of the demand for various medications, taking into account the impact of seasonal factors and patterns, along with the recurring needs of regular customers. A mathematical optimization model combines the predictions with restrictions such as the storage space and current ordering conditions, so that it can provide the optimal decision for what to order. This makes it possible to serve customer needs directly while simultaneous- ly keeping the amount of capital tied up in stored goods to a low level. The ordering pro- cedure developed in the project is automated to a great extent, which leaves more time for specialist personnel to spend on consultations with customers. When optimizing pharmacy inventory plan- ning, the research team was able to refer to previous results from projects that focused on wholesale distribution in the sanitation, heat- ing and air conditioning sectors. The pharma- cy inventory planning project is being funded until the end of 2024 by the Bavarian Ministry of Economic Affairs, Regional Development and Energy and the Bavarian Collaborative Research Program’s (BayVFP) Digitization funding line. Quantum Technologies Top: AI-driven predictions can help optimize inventory management Photo: iStock Bridging the gap between classic comput- ers and quantum technology A consortium led by the Stuttgart-based quantum start-up Q.ANT is developing tech- nologies for photonic quantum computing in the project Phoquant. The novel feature in this development approach for harnessing photon- ic quantum computing in industry settings is that the team hopes to direct, manage and control up to 100 qubits with virtually no losses, even at room temperature. The current generation of quantum computer chips must be cooled to almost absolute zero (–273.15 degrees Celsius), which, in addition to being expensive and difficult, means that they are unsuitable for direct connections with classic computer architectures. The new photonic chip process developed by Q.ANT, a subsidiary of the machine tool manufacturer TRUMPF, is set to make it easier to combine quantum Bottom: A permanent con- nection between a glass fiber cable and an integrated opti- cal quantum component Photo: Besim Mazhiqi / University of Paderborn Click here to learn more about the Artificial Intelligence research field 45

Review of Fraunhofer research I Projects and results 2022 energy-efficient and intelligent sensors for the next generation of autonomous systems. In the process, they are redefining the connec- tions between perception and information processing through innovative electronics. For them to continue working fairly autono- mously in their various areas of application, the robots are packed with sensors and elec- tronics to make them into mobile supercom- puters. However, this consumes considerable amounts of energy; according to current predictions, robotic energy consumption will stretch global generation capacity to its limits over the coming decades. This is why Fraunhofer researchers are working on a form of decentralized intelligence that is tailored specifically to each sensor. Neuromorphic electronics are based on a very energy-efficient model: the human brain. Instead of using multiple components that consume a lot of energy in communicating with each other, this alternative approach is based on a new form of analog computer memory technology that can be used to recognize objects and their behavior with great accuracy and in real time. In parallel, the researchers are developing very small, efficient object recognition and classi- fication models that are specially adapted to the sensors, as well as to the new possibilities opened up by directly integrated electronics and their applications. The results are rapid reaction times, improved data protection and significant energy savings when compared to the current trend of cloud-based solutions that tend to rely on ever larger and more energy-intensive models. In the coming years, this approach will be combined with a more complex LiDAR (Light Detection And Ranging) system developed by Fraunhofer and tested in an environment that closely imitates real- world applications. This 3D laser scanning system is crucial for autonomous systems, as it can perceive its environment even in poor visi- bility conditions and over a wide focus range. Photonics to secure the Internet of Things Countless apps are already generating added value for end users, industry, logistics and business, thanks to the Internet of Things and its network of intelligent physical and virtual objects. The number of IoT devices is predicted to rise from 30 to 75 billion by 2025 — meaning there’s a more urgent need than ever before to protect the IoT and its applications against cyberattackers. Up to now, this has mostly been done through hardware-based cryptographic algorithms. However, with the rise in communication speeds, the cost and energy budget is increas- ingly dipping into the negative range here. A consortium of industry and scientific part- ners has been working on a novel approach to this problem since 2021, with funding from the German Federal Ministry of Educa- tion and Research (BMBF). This project, titled Silhouette, is part of the BMBF’s VELEKTRONIK program; the end goal of the initiative is a uni- versal platform solution for developing hybrid systems. One key element of the project is to systematically convert safety-critical electrical signals into optical signals and then process and/or validate them before finally reconvert- ing them to their original form. The photonic transmission channels have the major advan- tage of being tap-proof and virtually impos- sible to manipulate. Thanks to the hybrid approach, existing safety-critical components from third-party suppliers can be still be used, which means it will also be possible to retain the current broad range of applications. Other development requirements include low manu- facturing costs and the possibility of producing these hybrid electro-optical circuits in batches. The Silhouette consortium’s electro-optical platform solution will be based in the Europe- an economic area, so that technological sov- ereignty and reliability are guaranteed at every stage, including during design and manufac- turing processes. To achieving manufacturing sovereignty, the researchers will need the simplest and most universal photonic interface possible to existing digital components. The Fraunhofer Institute for Photonic Micro- systems IPMS is coordinating the project along with a number of Fraunhofer and non-university research institutes, OSRAM Opto Semiconductors and qutools, a Munich- based company for developing and marketing quantum optics. Top: How can we make our electronics more reliable? Light-based data transmission and calculation could be the answer. The circuit shows how this could be designed and manufactured with silicon- nitrogen technology. Photo: Fraunhofer IZM Bottom: The AlScN power semi-conductor device opens the door to energy-efficient circuits and components Photo: Fraunhofer IAF Click here to learn more about the Next Generation Computing research field 47

Review of Fraunhofer research I Awards 2022 Joseph von Fraunhofer Prize 2022 Joseph von Fraunhofer Prize 2022 Joseph von Fraunhofer Prize 2022 New, precise methods — fluore- scence measurement technology for quality control in production A research team from the Fraunhofer Institute for Physical Measurement Tech- niques IPM, led by Dr. Albrecht Bran- denburg and Dr. Alexander Blättermann, has turned a fluorescence measurement process into a robust, precise measuring technique. For the first time, complex 3D components can be checked for purity during manufacturing in intervals of mere seconds — and these checks cover 100 percent of the component. The performance data is equally spec- tacular: The system can measure 40 mil- lion points per second, detect impurities of just 1 milligram per square meter and take quantitative measurements from 10 milligrams upward. The technology is spreading very quickly, both within Germany and internationally. The jury’s decision was motivated by the project’s high levels of technical advancement and the quantifiable financial benefits for companies that have adopted the technology. Always ready to receive — RFicient® chips for a sustainable Internet of Things The number of wireless devices connect- ed to the internet of things is increas- ing rapidly — in both the private and industrial sectors. However, for devices to be accessible at all times, their radio receivers must be permanently switched on — which runs down the service life of small, battery-powered IoT nodes. In contrast, the RFicient® chip allows for a 99 percent power saving, even though its sensor node is ready to receive signals at any time. This chip was developed by Dr. Frank Oehler, Dr. Heinrich Milosiu and Dr. Markus Eppel and their team at the Fraunhofer Institute for Integrated Circuits IIS. In addition to the complete process chain covering everything from the initial idea to implementation, the project’s particular societal relevance was the deciding factor for the jury: After all, the number of wireless devices — together with the associated energy and resource consumption — is skyrocketing. Video of the fluorescence measurement technology Video of RFicient® A unique measuring technology — 3D-based position monitoring during radiotherapy When radiotherapy is used to treat cancer, the rays must hit the entire tumors with great precision. However, until recently, monitoring the exact posi- tion of patients during treatment has been difficult. Dr. Peter Kühmstedt, Dr. Christoph Munkelt and Matthias Heinze at the Fraunhofer Institute for Applied Optics and Precision Engineering IOF have developed a new overall system to address this issue, in collaboration with their industry partner Varian Medical Systems. In the future, this system will allow doctors to monitor the patient’s position to be continuously — both before and during the radiation therapy. The jury’s decision to award the prize to this project was motivated in partic- ular by the relief it offers patients. The system’s half-millimeter accuracy, high frame rate and low latency were also important factors here. Video of the radiotherapy measurement technology r e f o h n u a r F / i k s w o r e z c n a B i r t o P : s o t o h P Dr. Alexander Blättermann and Dr. Heinrich Milosiu, Dr. Markus Eppel Dr. Peter Kühmstedt, Matthias Heinze Dr. Albrecht Brandenburg (from left) and Dr. Frank Oehler (from left) and Dr. Christoph Munkelt (from left) 49

Review of Fraunhofer research I Awards 2022 National and international research prizes 2022 Nominated for the German Future Prize The compact ChargeBox enables quick charging of electric vehicles — large- ly without needing a connection to a powerful electricity network. The storage-based ultra-rapid charging system only needs the standard type of power connection commonly found in residential and commercial buildings. ChargeBox was first developed by the market-listed company ADS-TEC Energy plc (NASDAQ: ADSE) and the Fraunhofer Institute for Solar Energy Systems ISE for the company Porsche AG. This innova- tion was among the top three nom- inations for the German Future Prize 2022 — the Federal President’s Award for Technology and Innovation. German Raw Material Efficiency Award The Fraunhofer Institute for Solar Energy Systems ISE was awarded second prize in the research institutions category of the German Raw Material Efficiency Award 2022, organized by the Federal Ministry for Economic Affairs and Climate Action (BMWK). The award was presented to the BMWK-funded LC 150 (low charge 150 g) project for its team’s work in developing a heat pump refrigerant cycle that runs on propane, an environmentally friendly refrigerant. This innovation could enable propane heat pumps to be used in residential buildings. The research- ers at Fraunhofer ISE managed to set a record in October: Using 124 grams of propane (R290), they achieved a heat output of 12.8 kilowatts, which equates to about 10 grams of propane per kilo- watt of heat output. Conventional heat pumps on the market use around six times as much fuel. Clemens Dankwerth and Dr. Lena Schnabel (from left). The LC 150 project was awarded second place in the 2022 German Raw Material Efficiency Award. Photo: Fraunhofer ISE EU Innovation Prize RWE Nuclear and the Fraunhofer Insti- tute for Computer Graphics Research IGD won third prize in the waste man- agement category of the EU Nuclear Innovation Prize for their joint research research projects ROBBE (robot-assisted component handling). Since fall 2022, the robot system has been in operation at the RWE dismantling plant in Biblis. At this site alone, there are around 15,000 tons of coated steel parts that require processing. The system ensures that the workers there are exposed to less radiation, and reduces the amount of strenuous physical work they need to carry out. A patent application for the system has already been filed. The team from RWE Nuclear and Fraunhofer IGD received an EU Innovation Prize Energy to develop power electronics for Photo: Fraunhofer the ChargeBox Photo: German Future Prize A team headed by Stefan Reichert, Fraunhofer ISE, worked with ADS-TEC 51

North Rhine-Westphalia Innovation Award The NRW innovation award was pre- sented in four categories for the first time in 2022. The team that devel- oped SOGNO (Service Oriented Grid for the Network of the Future) was awarded this prize that recognizes special innovative achievements. Prof. Antonello Monti of RWTH Aachen University and the Fraunhofer Institute for Applied Information Technology FIT headed up the project. SOGNO (Italian for “dream”) is a complex software platform for distribution grid operators. It uses digital controlling instruments to increase the capacity of the exist- ing grids. The state-of-the-art control technology also helps with substantially reducing the costs of transforming the power systems. The system has proven its effectiveness during field tests. Areti, the grid operator in Rome, has already begun the process of putting the SOGNO architecture into active operation. The core developments were made in the scope of an EU project in the research group headed by Prof. Monti at RWTH Aachen University. Among those involved in the further development of SOGNO were researchers from the Center for Digital Energy at Fraunhofer FIT. Prof. Antonello Monti received the North Rhine-Westphalia Innovation Award Photo: Peter Winand Click here for more information on the 2022 awards Review of Fraunhofer research I Awards 2022 Dr. Christoph Jürgenhake of Fraunhofer IEM was responsible for developing a holistic design method Photo: Marius Knutsen / TrAM-Konsortium Ship of the Year award Since summer 2022, the first high-speed electric passenger ferry in the world has been operating regular services in Stavanger in southwestern Norway under the name Medstraum. Medstraum (Norwegian for “with electricity” or “continuous current”) was built as part of the EU’s TrAM (Transport Advanced and Modular) project. The project part- ners included the Fraunhofer Institute for Mechatronic Systems Design IEM and the Fraunhofer Institute for Industrial Engi- neering IAO. Building individual ferries is usually an expensive and lengthy process; however, the EU-wide TrAM project consortium is making it faster and more cost-efficient with a modular approach. Basing development and manufacturing around reusable “building blocks” will make shipbuilding significantly faster, more efficient and therefore more com- petitive. During research into mobility models, the focus was on how land and water transportation can interact in a way that will help bring about climate- neutral and demand-driven urban trans- portation. Video of the electric passenger ferry “Medstraum” 53

Review of Fraunhofer research I People in research 2022 Prof. Katharina Hölzle MBA Qualified industrial engineer | Member of the institute management for the Fraunhofer Institute for Industrial Engineering IAO in Stuttgart | Director of the Institute of Human Factors and Technology Management (IAT) at the University of Stuttgart Seeing the silver lining in crises Innovation is like a muscle, opines Prof. Katharina Hölzle. You have to train to get better at it. She believes that we have lost our mental and physical flexibility due to the high levels of stability, comfort and prosperity we have enjoyed in recent years. As an innova- tion researcher and industrial engineer, she is maintaining her confidence in the face of the multiple ongoing crises. “As the history of innovation research shows, great advance- ments in innovation have always come during times of major crisis.” Since April 2022, the professor has been a member of the institute management at the Fraunhofer Institute for Industrial Engineering IAO and director of the Institute of Human Factors and Technology Management (IAT) at the University of Stuttgart. Prior to that, she served as professor for Innovation Manage- ment and Entrepreneurship at the University of Potsdam from 2011 to 2019, and then as head of IT Entrepreneurship at the Hasso Plattner Institute. Born in Flensburg in the north of Germany, Prof. Hölzle studied industrial engi- neering at the Karlsruhe Institute of Technology and completed an MBA at the University of Georgia in Athens. She went on to pursue her doctoral studies at the Technische Universität Berlin, where she also qualified as a professor. Next, the industrial engineer held the role of visiting professor at the University of Interna- tional Business and Economics (UIBE) in Beijing, the University of Technology Sydney (UTS) and Macquarie University in Sydney. Before launching into her academic career, she worked in companies such as Infineon Technologies, Capgemini and an American start-up. From 2019 to 2021, Prof. Hölzle was a member of the German federal government’s High-Tech Forum, and until June 2022, she was the deputy chair of the German federal govern- ment’s Commission of Experts for Research and Innovation (Expertenkommission Forschung und Innovation, EFI). She summed up the key points of the report published by the scientists on the expert commission in 2022 as follows: Technological sovereignty is crucial for Germany’s growth — “in fact, for our survival, too!” The strength of Germany’s positioning varies across the dif- ferent key technologies, she reports: while the country is doing well in conventional produc- tion and material technologies, it has a weak spot when it comes to the areas of bio- and natural sciences. “This is particularly obvious when you look at digital technologies — we have completely fallen behind there.” The overall picture that emerged from the studies is a cause for serious concern for the expert council, as digital technologies feature in every form of production and biotechnology these days. Germany ranks much lower than the USA and Asia when it comes to patent applications in this area. China in particular has gained ground enormously, in terms of publications and start-ups as well as patents. “In recent years, Germany has missed out on quite a few things in fields like big data, digital security, microelectronics and AI,” states Prof. Hölzle. Germany’s business culture and even its social culture need to change, the scientist asserts. If options are limited, particularly in terms of finances, then old structures must be aban- doned in order to make room for the new. “What we need is the desire to shape the future,” argues the professor. As a teacher, she treasures her interactions with her students. For her, education means participating and contributing. “Innovations are not welcome in times of doubt. They are stressful, they’re different — and we humans really struggle with that kind of thing.” However, she insists that each and every individual must accept that “more of the same” is simply no longer an option. The scientist wants to counter that view with another imperative: “I can do something!” “We can only tackle the great challenges of our time and develop solu- tions if we pull together, at a social, political, industrial and scientific level. Empowering people for this togetherness — that’s what I stand for.” Click here for the online special 55

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Review of Fraunhofer research I People in research 2022 Dr. Alethea Vanessa Zamora Gómez Doctor of engineering | Senior scientist in the Optical Sensors section at the Fraunhofer Institute for Reliability and Microintegration IZM in Berlin A photonic affair Dr. Vanessa Zamora no longer needs to convince anyone of the usefulness of portable diagnostic devices that deliver rapid results. PCR and antigen tests have shown how important it is to quickly find out whether an infection is present. As lead coordinator of an international consortium, Dr. Zamora played a particularly essential role in developing a prototype for an entirely new generation of diagnostic systems. In 2022, she was able to present the photonic biosensor “PoC-BoSens” at the medical trade show COMPAMED — right on schedule. As a physics engineer, her expertise was partic- ularly vital to developing the sensor’s automat- ic read-out device — the first to have an entire array of cylindrical microresonators integrated on a single chip. Dr. Zamora, who has been a senior scientist at the Fraunhofer Institute for Reliability and Microintegration IZM since 2019, worked with her team to create an optofluidic configuration that enabled them to connect the hybrid photonic chip with a microfluidic chip. But that’s not the only special thing about the system: the microstructures within the read-out cartridge, which are made of optical fibers, can be used for multichannel detection of target molecules. This makes it possible to diagnose multiple diseases simultaneously. “The most important lesson I learned in my family was to pursue my personal goals with discipline and perseverance,” says Dr. Zamora. She comes from a Mexican family with a marked sense of independence and an inclina- tion toward all things scientific. Her mother is self-employed and runs her own micro compa- ny, her father worked as an electrical engineer until the day he retired, her elder sister is a spe- cialist in power control at a Mexican gas com- pany and her younger sister is a professor of industry robotics, dynamic systems and cyber- netics at a Mexican university. Vanessa Zamora kept up the family tradition and studied physics at the Universidad Autónoma de San Luis Potosí, where she qualified with a masters in applied science. She won an award for being one of the best students in all of Mexico, and then went on to receive one of just 50 doctoral scholarships that the Spanish Ministry of Uni- versities confers worldwide each year. It was at the University of Valencia that Dr. Zamora first worked with optical fibers that could serve as tiny sensors. That was the beginning of her path to becoming an expert in sensor technol- ogy — that, and the three months of her doc- toral studies that she spent at the Max Planck Institute for Polymer Research in Mainz. For her doctorate, she developed innovative refrac- tometric microsensors based on glass fibers. In 2010, she completed her PhD with honors (cum laude). As a post-doctoral student, Dr. Zamora made a detour to Edmonton, Canada, but as she put it herself, “the way people work in Germany and the facilities they have made a good impression on me.” So she applied to Fraunhofer, and in 2011, she started work at the Fraunhofer Institute for Telecommunications, Heinrich-Hertz- Institut, HHI, as one of the few female experts in her field. It was there that her first patent (US 9,846,060 B1) was issued for an optical resonator array for increasing dynamic range. In 2013, she switched to Fraunhofer IZM. Now Dr. Zamora is a team lead, receiving growing numbers of industry contracts for applications ranging from medicine to quantum technol- ogies. One of her focus areas is miniaturized photonic systems and interfaces with them — optical, electrical, and in the future, fluidic too. So what does an expert in optical sensors do to relax? She plays volleyball, for one thing: it should be no surprise that she set up a volleyball team for the scientific faculty at San Luis Potosí and led them to second place in a competition. In Berlin, she also plays beach volleyball. “It’s a great way to unwind!” she enthuses. Click here for the online special and additional information “The Fraunhofer model, with its strong ties to industry, is unparalleled worldwide. With my knowledge of sensors, I can help develop technological solutions that will contribute to the good of society as a whole in the future.” 59

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Review of Fraunhofer research I Transfer activities 2022 Putting research into practice: results find their place in industry and society Non-university research institutions in Germany are transmitting their efforts to strengthen the country’s industry and society via the 7 transfer paths set out in the Pact for Research and Innovation. As the Fraunhofer -Gesellschaft’s mission is centered on applied research, the deciding factors it uses in measuring its own suc- cess are whether research results are being put into practice, and what impact they are making financially, environmentally and socially. 1 Contract research Key figures for 2022 € 627 million from industry contracts (within Germany and internationally, excluding license-fee revenue) Commercializing ceramic solid-state batteries With a research contract for a eight-figure sum and the found- ing of the joint venture Altech Batteries GmbH: Fraunhofer is well on the way to commercializing ceramic solid-state battery technology. This project was one of the first to be funded by the Fraunhofer Future Foundation. In order to build a battery factory at the Schwarze Pumpe industrial park near the Saxon town of Hoyerswerda, the Altech Group and Fraunhofer founded the joint venture Altech Batteries GmbH. They will use this facility to mass-produce cerenergy®, a platform for ceramic solid-state bat- teries developed by the Fraunhofer Institute for Ceramic Technol- ogies and Systems IKTS. These resource-efficient sodium-nickel chloride high-temperature batteries can be used to store renew- able energy, thus providing what has so far been the missing link of the energy transition. The cerenergy® batteries can be used for grid energy storage when power generation fluctuates, as a buffer between energy generation and consumption, in the charging infrastructure for electric transportation and as a stationary storage solution for industry and private households. Instead of working with critical raw materials such as lithium or cobalt, the batteries use less expensive, readily available resources like aluminum oxide for the ceramic solid-state electrolyte and sodium chloride and nickel for the cathode medium. What’s more, the ceramic batteries are fire- and explosion-proof, barely age at all during charging cycles and are 40 percent cheaper to manufacture than comparable lithium-ion batteries, according to the calculations of researchers at Fraunhofer IKTS. Now that the cerenergy® technology is set to go into mass production, shares in Altech have been included in investment recommendations — by Ecoreporter magazine, for example. 2 Spin-offs Key figures for 2022 18 spin-offs 4 shareholdings The agriculture of the future begins in space Data from space will help secure food supplies on Earth and save water in the process: This data will come from a fleet of microsatellites, each the size of a shoe box, that monitor the surface temperature of our planet. Their measurements are accurate to within 50 meters and can provide information on changes in plant health, and enable more efficient irrigation of agricultural land and more precise crop yield predictions. With this information, ConstellR is making huge strides toward a form of agriculture that is adapted to climate change. In March 2022, the technology proved its functionality when the measur- ing instrument LisR (Long-wave Infrared Sensing demonstratoR) was installed and put into operation on the International Space Station. The data that it has been receiving from and transmit- ting to Earth since April last year has laid the foundations for a number of pilot projects that ConstellR is currently working on. The development of LisR was led by the Freiburg-based Fraunhofer Institute for High-Speed Dynamics, Ernst-Mach- Institut, EMI, in collaboration with its spin-off, ConstellR. The measuring instrument consists of a data processing unit and a thermal infrared camera with compact upstream free-form mirror optics that can be used to determine the land surface temperature of the Earth from space. The free-form optics were developed and manufactured by the Fraunhofer Institute for Applied Optics and Precision Engineering IOF and its spin-off SPACEOPTIX. As a prototype, LisR’s functionality was put to the test and it passed with flying colors, allowing ConstellR to raise 10 million US dollars in seed capital by the end of 2022. Two ConstellR microsatellites will be launched into orbit in mid- 2024, and more will follow in 2025. 3 Intellectual property Key figures for 2022 7,414 active patent families 443 invention disclosure reports 375 patent applications € 160 million of license-fee revenue Bowing out with license in hand In 2022, the Fraunhofer spin-off Arioso Systems was sold to Bosch Sensortec. In 2019, the parent institute, the Fraunhofer Institute for Photonic Microsystems IPMS, and its spin-off, Arioso Systems, concluded a licensing agreement for the technology that it is based on — and this agreement is still in effect. It began with Nanoscopic Electrostatic Drive (NED), a 63 63

Review of Fraunhofer research I Transfer activities 2022 training during their employment at the organization. Fraunhofer has a 10 percent turnover rate in its scientific section. As part of the exit interviews, departing employees were asked where they were planning to go next in their careers. It was found that two thirds of departing employees were switching to careers in industry; around half of these were taking up management positions. Careers at Fraunhofer 6 Infrastructure services Key figures for 2022 No figures are available in this area (yet). These can currently be seen in other transfer paths. Living laboratories for geothermal systems and georesources Around a quarter of Germany’s heating demand could be covered by climate-neutral deep geothermal systems, accord- ing to a road map by researchers at Fraunhofer and the Helmholtz Association. A shift to geothermal energy could be particularly effective in North Rhine-Westphalia, as the state is home to the largest district heating networks in Europe that still use waste heat from coal-fired power plants. In order to use renewable energy for district heating, Germany must tap into the large underground thermal water reservoir in Northwestern Europe, as the Netherlands, Belgium and France have already done. The TRUDI living laboratory, run by the Fraunhofer Research Institution for Energy Infrastructures and Geothermal Systems IEG, is helping to test technologies under realistic conditions, and then quickly and safely scale them up for market launch. In the Fraunhofer Metropolitan Laboratory for Connected Underground Systems and Energy System Transformation TRUDI, heat sources such as solar thermal energy and waste heat are connected to high-capacity thermal storage facilities such as flooded coal mines and high-temperature heat pumps to create heat networks for large cities such as Bochum, which can serve as role models for other locations. In 2022, following a multi-stage selection process by Zukunftsagentur Rheinisches Revier GmbH, the way was cleared for a Fraunhofer living laboratory focusing on deep geothermal systems in the Rhineland region. This could create a large research infrastructure for geothermal energy that is the first of its kind in Europe. At the planned site in Weisweiler, Fraunhofer IEG aims to conduct research with industry partners into areas such as georesources, borehole technologies, exploration and heat storage. 7 Science communications Key figures for 2022 According to a media engagement analysis, Fraunhofer appeared in 11,026 articles; of these, around 60 percent were initiated by Fraunhofer itself. They were viewed 5,511.2 million times. Participation and co-creation In addition to the traditional communication channels, citizen participation is becoming a more important aspect of science communication at Fraunhofer. Various Fraunhofer institutes have gained experience in the area of citizen science. In order to expand these activities in a structured way, an internal working group of experienced stakeholders from the Fraunhofer institutes was founded. The group is advised and supported by the Public Formats and Initiatives department at headquarters. The Center for Responsible Research and Innovation (CeRRI), a department of the Fraunhofer Institute for Industrial Engineering IAO, is also involved. This depart- ment can bring to bear its many years of experience and methodological expertise on the topic of citizen science. In addition to integrating citizen science into its own organiza- tion, Fraunhofer is also seeking to engage more actively in dialogue with external stakeholders. For example, Fraunhofer has representatives in the German Federal Ministry of Education and Research’s discussion group on participation. The participation of ordinary citizens is also key when it comes to more efficiently harnessing the potential of digitalization for rural regions. For projects in this area, the Fraunhofer Institute for Experimental Software Engineering IESE supports cities and regions through a co-creation approach. This participatory method means that groups such as citizens, administrators or industry stakeholders are actively involved in collecting ideas, defining requirements, and evaluating strategies and digital solutions that have already been put in place. Fraunhofer IESE’s best-known examples of this approach are the Digital Villages (“Digitale Dörfer”) and Smart.Rural.Regions (“Smarte.Land. Regionen”) projects. Click here for the quick-start guide for customers. Here you will find more information on collaboration methods, including for SMEs, opportunities for reciprocal technology transfer and continuing professional development courses. 6565

Finances Balance sheet at December 31, 2022 Income statement for the financial year 2022 Excerpts from the notes to the 2022 financial statements Convenience translation of the German independent auditor’s report 67

Finances I Balance sheet at December 31, 2022 Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e V, Munich EQUITY AND LIABILITIES 2022 in € 2022 in € 2022 in € 2021 in € (1,000) A Equity I. Non-profit organization capital Carried forward Annual result II Reserves for statutory purposes Carried forward Transfers Allocations B Extraordinary items 1. License-fee revenue reserve for statutory purposes 2. Grants relating to noncurrent assets 3. Grants used to finance current assets 4. Extraordinary item for payments from patent sales 5. For financing restructuring measures C Provisions 1. Provisions for pensions and similar obligations 2. Other provisions D Liabilities 1. Trade payables 2. Unappropriated grants from the federal and state governments a) relating to base funding b) relating to project billing 3. Accounts payable to affiliated companies 4. Other liabilities E Accrued expenses and deferred income 15,453,063.17 72,226.07 15,225.00 – 500.00 319,916,048.27 164,315,708.66 15,525,289.24 15,725.00 404,402,245.99 2,770,535,135.62 379,725,583.09 128,372,366.67 21,144,700.00 8,765,200.00 233,813,533.13 120,015,092.15 484,231,756.93 768,878.40 44,550,157.78 15,387 66 15,453 19 5 1 15 15,541,014.24 15,468 415,508 2,633,936 295,492 47,410 24,611 3,704,180,031.37 3,416,957 242,578,733.13 649,565,885.26 9,032 200,065 209,097 93,898 270,724 150,602 421,326 – 25,241 540,465 5,043,452.81 4,289 4,616,909,11681 4,186,276 Trust liabilities 65,669,278.71 8,575 69

Finances I Income statement for the financial year 2022 Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e V, Munich 2022 in € 2022 in € 2022 in € 2021 in € (1,000) Carryover 5 Cost of materials 5.1 Expenditure on raw, auxiliary and operating materials 5.2 Expenditure on purchased research and development services Personnel expenses Salaries Social contributions and expenses for pension schemes and other benefits of which for pension schemes: € 67,948,141.64 6 6.1 6.2 197,204,333.37 241,060,491.86 1,438,172,222.75 (2021: € 67,927 (1,000)) 321,202,027.76 7 Amortization of intangible assets and depreciation of noncurrent assets 8 Other operating expenses 9. Amortization of financial assets and securities classified as current assets 10 Interest and similar expenses Total expenditure 11 Net income for the year 12 Transfers from reserves 13 Allocations to reserves 14 Annual result 15. Allocation to non-profit organization capital 438,264,825.23 1,759,374,250.51 344,375,197.50 382,832,048.01 2,166,389.05 277,782.76 2,927,363,219.13 2,741,343 214,246 235,612 449,858 1,325,824 301,287 1,627,111 294,485 368,324 864 639 2,927,290,49306 2,741,281 72,726.07 – – 500.00 72,226.07 – 72,226.07 – 62 5 –1 66 – 66 – 71

Finances I Excerpts from the notes to the 2022 financial statements 2 Recognition and measurement methods Intangible assets and property, plant and equipment are mea- sured at amortized cost, i.e. the cost of acquisition or production less depreciation/amortization calculated on a straight-line basis. Intangible assets are amortized over a useful life of three years. provided for in its financial statutes of recognizing a balance sheet reserve in particular for liquidity and risk safeguards. Funding used to finance noncurrent assets is allocated to the extraordinary item “Grants relating to noncurrent assets.” A separate extraordinary item is used to account for grants used to finance current assets. Institute buildings on Fraunhofer and third-party land are depreciated as follows: Added before April 1985 at 2 percent Added between April 1, 1985 and December 31, 2000 at 4 percent Added after January 1, 2001 at 3 percent A useful life of five years is applied to movable items of prop- erty, plant and equipment. However, a useful life of four years is assumed for communication, video and audio systems, and three years for IT hardware. Motor vehicles are depreciated over a useful life of four years. Financial assets are measured at cost or at fair value, whichever is lower. Since the noncurrent assets presented in the ordinary accounts are financed by government grants, the extraordinary item “Grants relating to noncurrent assets” is reduced by an amount corresponding to the depreciation/amortization of these assets. Therefore, these adjustments have no impact on the income statement. Work in progress is measured at the cost of production or fair value, whichever is lower. Production costs include applicable personnel expenses, cost of materials, general administrative expenses and depreciation/amortization charges. Advance payments received (including VAT) are openly deducted under inventories. Trade receivables and other assets are recognized at their nom- inal value. Irrecoverable debts are remeasured at the reporting date. The overall non-payment risk is limited by creating a provision for doubtful debts corresponding to 2 percent of the total amount of accounts receivable. Securities classified as current assets are recognized at cost. Cash and cash equivalents are recognized at their nominal value. Payments made before the reporting date for which the associated benefits will be received in a future period are recognized as prepaid expenses in the balance sheet. The Fraunhofer-Gesellschaft makes use of the instrument Provisions for pensions and similar obligations, for which the Fraunhofer-Gesellschaft has a reinsurance policy in place, are measured on the basis of the capitalized amount calculated by the insurance company at the reporting date. The capitalized amounts are calculated in accordance with the information provided by the insurance company and on the basis of the DAV 2004 R guideline tables. Adjustments to current pensions and to applicable income are not taken into account. If there is no reinsurance policy in place, or if the settlement cost of the pension obligations exceeds the capitalized amount calculated by the reinsurer, the amount recognized as a provision is calcu- lated in accordance with an expert opinion based on actuarial evidence. The settlement amount of the pension obligation is calculated using the present value method (method for calcu- lating current single premiums). A 10-year-average actuarial interest rate of 1.78 percent was used in the calculation in accordance with section 253 (2) HGB, along with the 2018 G Heubeck guideline tables. Other provisions comprise amounts set aside to cover all identifiable risks and contingent liabilities. These provisions are measured in accordance with section 253 (1) HGB on the basis of a reasonable estimate of the most probable outcome. Other provisions for liabilities due in more than one year are discounted at the average market interest rate for loans of a similar maturity as calculated by the Deutsche Bundesbank in December 2022, pursuant to section 253 (2) HGB. Provisions for partial retirement are calculated on the basis of the policies already concluded and on an estimate of those to be conclud- ed in the future. Liabilities are measured at the settlement amount. Payments received before the reporting date for benefits to be delivered in a future period are recognized in the balance sheet as deferred income. Amounts recognized for transactions in foreign currencies are translated at the applicable hedging rates of the respective currencies. In the annual financial statements, foreign currency holdings are translated at the average spot exchange rate prevailing on the reporting date. Items in transit are noted as trust assets and trust liabilities in a separate line at the foot of the Fraunhofer-Gesellschaft balance sheet. 73

Finances I Convenience translation of the German independent auditor’s report matter. Moreover, they are responsible for applying methods of accounting that allow assessment of the organization’s continuing existence as a going concern, insofar as there are no material or legal circumstances that might contradict this assessment. Another of the legal representatives’ responsibilities is the prepa- ration of a management report, which must be consistent with all material aspects of the annual financial statements, comply with German statutory requirements, provide a true reflection of the organization’s financial position and provide a realistic assessment of the organization’s future opportunities and risks. In addition, the legal representatives are responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a management report that is in accordance with the applicable German legal require- ments, and provision of sufficient appropriate evidence for the statements made in the management report. It is the senate’s duty to present the annual financial state- ments to the general assembly for approval. Auditor’s responsibility for the audit of the annual financial statements and management report Our objectives are to obtain reasonable assurance about whether the annual financial statements as a whole are free from material misstatement due to fraudulent activities or errors and whether the management report as a whole pro- vides an appropriate view of the organization’s position and, in all material respects, is consistent with the annual financial statements and the knowledge obtained in the audit, complies with German legal requirements and appropriately presents the opportunities and risks of the organization’s future devel- opment as well as to issue an auditor’s report comprising our audit opinion on the annual financial statements and on the management report. Reasonable assurance implies a high level of confidence but does not guarantee that an audit conducted in full compliance with the provisions of 317 of the German Commercial Code (HGB) and of the generally accepted accounting principles set by the Institute of Public Auditors in Germany (IDW) will always detect a material misstatement when it exists. Misstatements may result from fraudulent activities or errors and are deemed to be material if it can be reasonably expected that they might individually or severally influence business decisions taken by the reader on the basis of the annual financial statements or management report. Throughout the audit process, we exer- cise professional judgment and maintain a neutral but critical attitude. We also: Identify and assess the risks associated with material mis- statements in the annual financial statements and manage- ment report due to fraudulent activities or errors, plan and carry out our auditing activities in response to these risks and collect sufficient, appropriate documentary evidence to substantiate our audit opinion. The risk that material misstatements resulting from fraudulent activities are not detected is higher than the risk that material misstate- ments resulting from errors are not detected since fraudu- lent activities may involve collusion, forgery, intentional omissions, misleading representations, or the override of internal controls. Familiarize ourselves with the internal control system and other instruments and measures insofar as they affect the auditing of the annual financial statements and manage- ment report, in order to design audit procedures that are appropriate in the given circumstances. However, it is not the purpose of the audit to judge the effectiveness of the organization’s control system Assess the appropriateness of the accounting principles applied by the legal representatives and the extent to which their estimated values and the associated information they specify are backed up by documented evidence Draw conclusions as to the appropriateness of the accounting principles applied by the legal representatives to determine the organization’s ability to continue as a going concern and, on the basis of the audit evidence, to determine whether material uncertainties exist about events or conditions that may cast significant doubt on the organization’s ability to continue as a going concern. If our investigations lead to the conclusion that material uncer- tainties do exist, it is our duty to comment on this fact in our independent auditor’s report, providing references to the relevant disclosures in the annual financial statements and/or management report. Alternatively, if such com- ments are inappropriate, it is our duty to modify our audit opinion accordingly. 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 orga- nization to cease to continue as a going concern Verify that the the overall presentation, structure and con- tent of the annual financial statements, including the disclo- sures and the presentation of underlying business transac- tions and events, comply with German generally accepted accounting principles (GAAP) and present a true and fair view of the organization’s net assets, financial position and operating results 75

Services Members, constituent bodies, committees Structure of the Fraunhofer-Gesellschaft Fraunhofer Germany 77

Michael Kleiner Baden-Württemberg State Ministry for Economic Affairs, Labor and Housing Construction State secretary Prof. Joachim Schachtner Ministry for Science and Culture of Lower Saxony Members delegated by the Scientific and Technical Council (STC) Prof. Albert Heuberger Managing director of the Fraunhofer Institute for Integrated Circuits IIS Stefan Schmidt Deputy chair of the Scientific and Tech- nical Council of the Fraunhofer Institute for Material Flow and Logistics IML Prof. Andreas Tünnermann Chair of the Scientific and Technical Council, director of the Fraunhofer Institute for Applied Optics and Precision Engineering IOF Honorary senator Prof. Ekkehard D. Schulz Doris Rösler Chair of the Fraunhofer-Gesellschaft central works council, Fraunhofer Institute for Building Physics IBP Undersecretary Dr. Manfred Wolter Bavarian Ministry of Economic Affairs, Regional Development and Energy Advisory boards In total, the advisory boards of the institutes consist of 899 members, some of whom hold seats on the advisory boards of more than one institute. Scientific and Technical Council (STC) The STC has 113 members, 108 of whom are delegated institute directors or senior managers, while 72 are elected representatives of the scientific and technical staff of each institute. Permanent guests State secretary Dr. Katja Böhler Thuringian Ministry for Economic Affairs, Science and Digital Society Chair of the STC: Prof. Andreas Tünnermann Director of the Fraunhofer Institute for Applied Optics and Precision Engineering IOF Prof. Anke Kaysser-Pyzalla Chair of the executive board of the German Aerospace Center (DLR) Dr. Jens Rosenbaum Saarland Ministry for Economics, Innovation, Digital Affairs and Energy Stefan Rughöft Deputy chair of the Fraunhofer- Gesellschaft central works council, Fraunhofer Institute for Open Communication Systems FOKUS Prof. Martin Stratmann President of the Max Planck Society for the Advancement of Science Presidential council The presidential council of the Fraunhofer-Gesellschaft is made up of the members of the executive board and the chairs of the ten Fraunhofer groups, named below: Prof. Wilhelm Bauer Fraunhofer Group for Innovation Research Prof. Karsten Buse Fraunhofer Group for Light & Surfaces Prof. Welf-Guntram Drossel Fraunhofer Group for Production Services I Members, constituent bodies, committees Prof. Dorothea Wagner Chair of the German Science Council Prof. Gerd Geißlinger Fraunhofer Group for Health Prof. Peter Gumbsch Fraunhofer Group for Materials and Components Prof. Hans-Martin Henning Fraunhofer Group for Energy Technologies and Climate Protection Prof. Albert Heuberger Fraunhofer Group for Microelectronics Prof. Boris Otto Fraunhofer ICT Group Dr. Markus Wolperdinger Fraunhofer Group for Resource Technologies and Bioeconomy Presidential council member acting in an advisory capacity Prof. Jürgen Beyerer Fraunhofer Segment for Defense and Security VVS Executive board Prof. Reimund Neugebauer (President of the Fraunhofer-Gesellschaft until May 25, 2023) Prof. Alexander Kurz Prof. Axel Müller-Groeling Elisabeth Ewen Dr. Sandra Krey Listed information valid as of December 31, 2022 79 79

Services I Structure of the Fraunhofer-Gesellschaft PRESIDENTIAL COUNCIL Senate appoints Executive board advises Scientific and Technical Council (STC) elects discharges delegate General meeting Structure of the Fraunhofer-Gesellschaft Group chairs delegate 76 Fraunhofer institutes and research units organized into nine groups Nine Fraunhofer groups advise Energy Technologies and Climate Protection Health ICT Group Innovation Research Light & Surfaces Materials and Components Microelectronics Production Resource Technologies and Bioeconomy Advisory boards External advisory bodies of the institutes 81