Fraunhofer Annual Report 2025

Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information The Fraunhofer-Gesellschaft’s 2025 annual report Innovations for People and Markets

2025 annual report Fraunhofer-Gesellschaft Foreword Foreword Contents Executive board’s report Dear Reader, Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information The 2025 ﬁnancial year was one of opportunities, progress and successful collaboration for the Fraunhofer-Gesellschaft. In a dynamic environment and despite a difﬁcult economic climate, we were once again able to demon- strate our strength as one of the leading applied research organizations and to drive signiﬁcant advances in the areas of innovation and sustainable devel- opment. Together with our partners in industry, government and society, we helped bring pioneering technologies closer to real-world deployment and develop tangible solutions to the major challenges of our time. Let me provide some examples: In December 2025, the Fraunhofer Research Institution for Battery Cell Production FFB in Münster became the ﬁrst organization to demonstrate that electrically functional lithium-ion battery cells can be produced using entirely European manufacturing technology. This is a milestone on the road to competitive battery production. At the Fraunhofer Heilbronn Research and Innovation Centers HNFIZ, eight Fraunhofer institutes are pooling their expertise in the ﬁelds of AI and digital transformation. Supported by the Dieter Schwarz Foundation and working closely with companies, organizations and public institutions across the region, they are creating a unique scientiﬁc ecosystem focused on intensive technology transfer and commercialization. The research portfolio covers various levels of maturity and is deliberately geared toward urgent present- day challenges and the demands of industry and society. Fraunhofer’s research is driven by industry needs. That is a testament to our mission. Germany has an outstanding, highly specialized research landscape, engi- neering expertise, high-performing industrial companies and an innovation- driven small and medium-sized enterprise (SME) sector. These are exactly the strengths that the German federal government’s High-Tech Agenda Germany (HTAD) is building on with the aim of advancing Germany’s innovative capacity and sovereignty in global technological competition. As a key innovation partner to industry, the Fraunhofer-Gesellschaft will do everything in its power to promote the implementation of the HTAD by pursuing cutting-edge applied research, establishing regional innovation partnerships and transferring research results into practical applications. The success of the HTAD will largely depend on all stakeholders across the innovation ecosystem making contributions in line with their respective strengths. For this, Germany needs a regulatory environment that clears the path to innovation for all stakeholders in the system. The implemen- tation of the highly anticipated Freedom of Innovation Act will be crucial in this regard. Through measures such as reforms to nonproﬁt law, it has the potential to create greater flexibility that will strengthen the transfer of knowledge and technology across Germany’s innovation system. What Germany and Europe need is the courage to set priorities, conﬁdence in their strengths and willingness to pursue structural reform. A modern culture of risk-taking and entrepreneurship must become a hallmark of Germany’s innovation system, alongside an environment that enables innovation rather than holding it back. Let us work together to make this vision a reality. Sincerely, Holger Hanselka President and Chair of the Executive Board of the Fraunhofer-Gesellschaft Holger Hanselka, President and Chair of the Executive Board of the Fraunhofer-Gesellschaft i r e e m r e b O n a f e t S / r e f o h n u a r F : o t o h P 2

2025 annual report Fraunhofer-Gesellschaft Contents Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Senate’s report The senate’s report on the 2025 ﬁnancial year Executive board’s report The executive board 2025 management report 4 5 7 32 33 35 New senate members 39 Review of Fraunhofer research 40 43 58 69 Awards 82 89 Pioneering achievements Initiatives, structures, funding programs Projects and results People behind the research Technology transfer activities 94 95 96 97 99 Finances Balance sheet at December 31, 2025 Income statement for the 2025 ﬁnancial year Excerpts from the notes to the 2025 ﬁnancial statements Convenience translation of the German independent auditor’s report 102 About Fraunhofer 103 Structure of the Fraunhofer-Gesellschaft 105 Members, governing and advisory bodies 107 Locations in Germany 108 Publisher’s information 3

Executive board’s report 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information 4

i r e e m r e b O n a f e t S / r e f o h n u a r F : o t o h P 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information The executive board Constantin Häfner Executive Board Member for Research and Transfer Sandra Krey Executive Board Member for Finances and Controlling Holger Hanselka President, CCO and Chair of the Executive Board Elisabeth Ewen Executive Board Member for Human Resources, Corporate Culture and Legal Affairs Axel Müller-Groeling Executive Board Member for Research Infrastructures and Digital Transformation 5

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Learn more about Fraunhofer’s executive board members i r e e m r e b O n a f e t S / r e f o h n u a r F : s o t o h P Holger Hanselka President and Chair of the Executive Board, Corporate Strategy and Communications Constantin Häfner Executive Board Member for Research and Transfer Holger Hanselka has served as the 11th president of the Fraunhofer- Gesellschaft since 2023 and as chair of the executive board since April 2025. Before that, he was president of the Karlsruhe Institute of Technology (KIT) for ten years and vice president of the Helmholtz Association, respon- sible for the ﬁeld of energy research. A mechanical engineer by training, Hanselka headed the Fraunhofer Institute for Structural Durability and System Reliability LBF in Darmstadt from 2001 until 2013 and was, for a time, a member of the Fraunhofer presidential council. He is active on var- ious advisory committees that support the German chancellor on matters of science and research policy. Constantin Häfner joined the executive board in February 2025 and is responsi- ble for research and transfer strategy at Fraunhofer. He is a professor at RWTH Aachen University and was previously the director of the Fraunhofer Institute for Laser Technology ILT in Aachen. In 2019, the laser physicist returned from the U.S., where he had been conduct- ing research into laser-based inertial conﬁnement fusion at the Lawrence Liv- ermore National Laboratory in Califor- nia. He led an expert group on fusion research (German Federal Ministry of Education and Research [BMBF]) until 2023 and is currently a member of the fusion research advisory board of the German Federal Ministry of Research, Technology and Space (BMFTR). Axel Müller-Groeling Executive Board Member for Research Infrastructures and Digital Transformation Axel Müller-Groeling is a professor at Kiel University. The physicist and exec- utive has conducted research at several renowned institutes and research organizations in Germany, France and Canada. He worked as a management consultant and co-founded an inter- national, publicly traded solar energy company, where he also served as an executive vice president. In 2016, he became the director of the Fraunhofer Institute for Silicon Technology ISIT in Itzehoe. He then also became director of the Fraunhofer Institute for Micro- electronic Circuits and Systems IMS in Duisburg. He has been on the executive board of the Fraunhofer-Gesellschaft since August 2022. Elisabeth Ewen Executive Board Member for Human Resources, Corporate Culture and Legal Affairs Elisabeth Ewen is a fully qualiﬁed lawyer with an additional special- ization 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 – Forschungszen- trum Informationstechnik GmbH. She joined the Fraunhofer-Gesellschaft in 2001 when GMD was integrated into the Fraunhofer-Gesellschaft. Since then, she has held several senior roles in human resources at the Fraunhofer-Gesellschaft, most recently as director of human resources. Ewen has served on the executive board of the Fraunhofer-Gesellschaft since August 2022. Sandra Krey Executive Board Member for Finances and Controlling Sandra Krey studied business adminis- tration and holds a doctorate from the University of Erlangen-Nuremberg. She worked for several years as an audi- tor at KPMG before joining the MAN Group, where she held various lead- ership roles in ﬁnance and account- ing over a 20-year period. Starting in 2013, she served as senior vice president for accounting and ﬁnance processes at MAN Truck & Bus SE and, at the same time, managing director of the MAN Shared Services Center in Poland. Krey has been on the executive board at the Fraunhofer-Gesellschaft since August 2022. 6

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information 2025 management report Contents 8 Key data 9 Profile, strategy and operating environment 9 Proﬁle of the Fraunhofer-Gesellschaft 10 Framework strategy process 11 Science policy framework and positioning 12 National and European large-scale projects 13 International partnerships 15 Business report 15 Total business volume 16 Contract research 19 Additional research funding 20 Major infrastructure 21 Financial and net asset position 22 Shareholdings and spin-offs 22 Exploitation of intellectual property rights 23 Sustainability aspects 23 Responsible corporate governance 24 Environmental responsibility 25 Employees 27 Opportunities, risks and outlook 27 Opportunity management 28 Risk management and risks 30 Outlook 7

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Fraunhofer-Gesellschaft—key data for 2025 (in € million) Total business volume Contract research Additional research funding Major infrastructure1 Business volume by budget Operating budget Capital expenditures2 Project revenue Contract research of which industrial revenue of which public-sector revenue3 Additional research funding Major infrastructure 2024 3,563 3,136 260 167 3,563 2,978 585 2,302 2,162 867 1,295 133 7 2025 3,574 3,152 219 203 3,574 3,048 526 2,346 2,220 966 1,254 100 26 Change +0% +1% -16% +22% +0% +2% -10% +2% +3% +11% -3% -25% +271% +11 +16 -41 +36 +11 +70 -59 +44 +58 +99 -41 -33 +19 1 Major infrastructure including investments in the APECS pilot line under the EU Chips Act 2 Current capital expenditure for contract research, additional research funding and major infrastructure capital expenditure 3 Comprises German federal and state government, EU and other revenue Total business volume Project revenue in € million in € million 3,563 3,574 +0% 2,302 2,346 +2% 2024 2025 2024 2025 8

2025 annual report Fraunhofer-Gesellschaft Proﬁle, strategy and operating environment Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Profile of the Fraunhofer-Gesellschaft Since it was founded in 1949, the Fraunhofer-Gesellschaft has been strengthening the competitiveness of industry and driving innovation in Germany and Europe. The Fraunhofer institutes help companies turn scientiﬁc ﬁndings into new technologies, supporting them every step of the way from idea to market launch and giving them a technological and competitive edge in inter- national markets. As an essential innovation partner for industry, the Fraunhofer-Gesellschaft helps strengthen German and European competitiveness. The Fraunhofer-Gesellschaft is a nonprofit organization with public funding that specializes in applied research. In keeping with the Fraunhofer funding model, at least two-thirds of the con- tract research that forms the core of Fraunhofer’s activities is funded by industry contracts, license-fee revenue and competitive public project funding. The aim is to strike a balance between industrial revenue and public project funding. A maximum of one-third of Fraunhofer’s research ﬁnancing consists of institutional funding from the German federal and state governments at a ratio of 90:10. This federal and state funding facilitates strategic pre-competitive research and the long-term development of technologies with high innovation potential that will become relevant to industry and society in the near future. This funding model directly reflects the entrepreneurial aspect of the Fraunhofer-Gesellschaft’s mission and ensures that Fraunhofer innovations are consistently aligned with speciﬁc (future) market needs. In 2025, more than 30,000 employees, predominantly scientists and engineers, generated the annual research volume of around €3.6 billion across 75 institutes. Of this total, €3.2 billion was attributable to the core business of contract research. Fraunhofer generated €966 million from industry contracts and license-fee revenue. This sets a new record—all the more remarkable con- sidering the challenging economic environment. Compared to other non-university research institutions that are ﬁnanced almost exclusively from institutional funding, the high proportion of industrial revenue in the Fraunhofer funding model is one of the factors that make Fraunhofer unique. One of the core values of the Fraunhofer-Gesellschaft and its institutes is that they always join forces with universities, universities of applied sciences and businesses in the region. This facilitates the growth of dynamic regional innovation ecosystems that can help strengthen regional economies. Moreover, Fraunhofer employees ensure that the next generation of scientiﬁc and techni- cal personnel have access to sound vocational training and continu- ing education and help improve public acceptance of modern technology. This is also made possible by the joint positions held by Fraunhofer research scientists at universities and universities of applied sciences. Each individual Fraunhofer institute and research institution devel- ops 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. Fraunhofer institutes also cooperate in cross-institute structures such as expertise-based groups, market-driven alliances and research fabs in order to facilitate the joint marketing of speciﬁc business units or sectors. 9

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Framework strategy process The framework strategy goals adopted in 2024 were the ﬁrst important step in refocusing the Fraunhofer-Gesellschaft on its mission and core responsibility of working with companies to drive the transfer of scientiﬁc knowledge into practical application: Remain key partner for industry – Generate revenue based on the Fraunhofer model – Leverage pathways to industrial application – Strengthen SMEs and large companies Drive groundbreaking technological innovation – Expand technological leadership – Attract and develop highly qualiﬁed and motivated Review of Fraunhofer research employees Finances About Fraunhofer Publisher’s information – Provide outstanding technology infrastructure Be an outstanding institution – Demonstrate reliability as a partner and employer – Increase efﬁciency – Think and act entrepreneurially These deﬁned goals provide guidance for speciﬁc strategies at the organizational level, the institute level, as well as for strategies for Fraunhofer partnerships (such as groups, alliances, etc.). They are known across all institutes and widely accepted throughout the Fraunhofer-Gesellschaft. Their impact is felt for instance at meetings of the institutes’ boards of trustees, where they provide a structural framework. In 2025, the framework strategy process focused on the devel- opment of a performance measurement system to facilitate the operationalization of framework strategy goals using targeted measures: 1. KPIs for organizational-level specialist strategies In 2025, Fraunhofer deﬁned a number of paramount framework strategy goals designed to get the operationalization phase off to a focused start. Priority will be given to aligning the relevant specialist strategies with these goals, and their contributions will be measured using a set of key performance indicators (KPIs). KPIs have been deﬁned to increase the productivity of Fraunhofer’s real estate and infrastructure as part of an infrastructure strategy contributing to the framework strategy goal “Provide outstanding technology infrastructures.” One aim is to increase the energy productivity of Fraunhofer’s properties; this will be measured by the ratio of energy consumption to revenue. Another is to increase the effective, value-adding use of infrastructure by implementing collaborative usage models. Fraunhofer’s communications strategy is making an important con- tribution to the framework strategy goal “Demonstrate reliability as a partner and employer.” Its aim is to strengthen employees’ engagement with Fraunhofer’s strategic direction by optimizing internal communication. This contribution will be measured by including appropriate questions in the Fraunhofer employee survey. Fraunhofer is also planning a strategic relaunch of its website with the aim of creating a more engaging, professional and clearly structured corporate image. The speciﬁc institute strategies are still the cornerstone of the Fraunhofer-Gesellschaft’s future-oriented activities, while the framework strategy deﬁnes the parameters for each institute’s strategic processes. The framework strategy goals thus ensure that strategic activities are consistently aligned across the organization while promoting the creation of synergies. The KPIs and their target values for 2027 form the link between the framework strategy goals and the operationalization of these goals through specialist strategies, each of which is the responsibil- ity of the respective executive unit. The executive units have max- imum freedom to formulate and implement measures; however, these measures must be consistently aligned with the framework strategy goals. If necessary, conflicts between KPIs in different specialist strategies are discussed by the executive board in order to leverage synergies and prevent tension. 2. Measuring the viability of the institutes in the Fraunhofer model In 2025, Fraunhofer introduced a new indicator to measure whether its institutes are currently viable within the Fraunhofer model and whether they will remain so in the medium and long term. Viability in this context is understood not only in economic terms but also from a holistic perspective. When assessing current viability, close attention is paid to the immediate ﬁnancial situation. Medium-term risks are evaluated by reviewing factors such as the balance of revenue sources. When evaluating long-term prospects, Fraunhofer also considers aspects such as the institute’s innovative capacity with regard to its scientiﬁc proﬁle. However, the indicator is not merely a way of measuring institute performance after the fact. It also serves as input for crisis prevention and crisis response processes (see “Outlook”). This enables Fraunhofer to respond to crisis situations without losing sight of its longer-term alignment with the framework strategy goals. 10

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Science policy framework and positioning Research policy in 2025 was shaped by the formation of the new German federal government and the resulting shifts in science, innovation and research policy. By restructuring the German Federal Ministry of Research, Technology and Space (BMFTR) under federal minister Dorothee Bär, the German federal govern- ment has set its sights on a mission-driven innovation policy with clearly deﬁned value-creation targets. Efforts to reduce bureau- cracy and advance digital transformation—both of which are key levers driving Germany’s innovative capacity—have now been brought together in the newly established German Federal Ministry for Digital Transformation and Government Mod- ernisation (BMDS) under federal minister Karsten Wildberger. Fraunhofer became involved in the realignment of political prior- ities early on. During the run-up to the German federal elections of 2025, Fraunhofer published a number of position papers and other documents on topics relevant to Germany as a high- tech location. Some of these were Fraunhofer’s own papers, while others were authored in cooperation with strategic partner organizations. The new federal government’s key science policy initiatives, including the High-Tech Agenda Germany (HTAD) and the Freedom of Innovation Act, were integrated into the coali- tion agreement. At their core, both initiatives aim to strengthen Germany’s innovative capacity in the face of international compe- tition and to promote outstanding scientiﬁc research with a clear focus on practical application. The HTAD takes a mission-driven approach to these goals, focusing on 6 key technologies and 5 research ﬁelds. Fraunhofer is closely involved with the HTAD, reinforcing it with Fraunhofer moonshot topics and establishing freedom of innovation as a requirement for research and faster transfer of knowledge and technology to practical application. The Freedom of Innovation Act is intended to free research from the minutiae of funding bureaucracy. From Fraunhofer’s perspec- tive, the main areas in which bureaucracy could be reduced are contract research for industry (modiﬁcations to the legal frame- work governing nonproﬁt organizations), licensing (modernization of individual secondary regulations in nonproﬁt law) and spin-offs. Fraunhofer also contributed to political discourse on key interdisci- plinary topics relating to digital and innovation policy, for instance by contributing its expertise during consultations on the National Data Center Strategy, the law implementing the EU AI Act and the German federal government’s startup strategy. Fraunhofer drew up speciﬁc recommendations regarding the further development of the research data ecosystem, the implementation of the Freedom of Innovation Act and the government draft of the Living Laboratories Act. Fraunhofer also developed contributions on lightweight design and transportation and research infrastruc- ture, focusing in particular on the organization of funding from the Off-Budget Fund for Infrastructure and Climate Neutrality. The Pact for Research and Innovation (PFI) is a cornerstone of Germany’s scientiﬁc landscape and provides reliable, internation- ally unparalleled ﬁnancial backing for the Fraunhofer-Gesellschaft, the Helmholtz Association, the Leibniz Association, the Max Planck Society and the German Research Foundation (DFG). The fourth phase, which began in 2021, will be the ﬁrst to cover a ten-year period and is set to continue until 2030. For Fraunhofer, it is vitally important that the Pact continues beyond 2030, since reliable base funding is imperative for conducting pre-competitive research and developing the expertise necessary to secure and implement industry projects. In 2025, the PFI celebrated its 20th anniversary. The anniversary event, which took place on May 13, 2025, at Futurium in Berlin and focused on the theme “20 Years of IMPACT for Research and Innovation,” opened with a welcome speech by Dorothee Bär, Federal Minister of Research, Technology and Space (BMFTR). In 2025, the Fraunhofer-Gesellschaft took over the rotating role of spokesperson for the Alliance of Science Organisations in Germany. This means Fraunhofer is now playing an active role in the German research landscape with regard to research security, international cooperation and commitment to shared values. The premature collapse of the governing coalition, the ensuing coali- tion negotiations and the restructuring of the BMFTR all impacted the Alliance’s work, as did international developments such as the wars in Ukraine and the Middle East and the reposi- tioning of the United States. Moreover, it became necessary to address issues relating to dependence on U.S. data, databases and software systems. The Alliance responded by joining the Interna- tional Coalition for Science, Research and Innovation in Ukraine, developing a strategy for scientiﬁc publishing, and presenting a paper on cutting through red tape to the Bundestag’s research committee. Ongoing geopolitical challenges have made research security an increasingly important issue. There has been intensive debate both within Germany and across Europe on protecting critical technol- ogy, managing international partnerships and regulating dual-use research. Fraunhofer actively contributed to these debates with position papers on science policy and statements on topics such as the planned EU research and innovation strategy Horizon Europe Secure. Fraunhofer also took part in the BMFTR’s stakeholder con- sultation process on research security, which started in 2024, was paused in the summer of 2025 and later resumed in a new dia- logue format involving the German federal and state governments and the Alliance. As spokesperson for the Alliance, Fraunhofer represented the Alliance’s interests jointly with the German Science and Humanities Council and helped shape the initial concept for a national research security platform. In this new format, the German federal and state governments and the Alliance agreed on a policy paper for a national platform. 11

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Furthermore, Fraunhofer President Holger Hanselka was appoint- ed to the German Federal Chancellor’s Strategy Group for Technology and Innovation. The Strategy Group is the German federal government’s highest-level advisory committee for technol- ogy and innovation policy. It was appointed by the German Federal Chancellor for the 21st legislative period and consists of members of the German federal government and senior representatives of science and industry. The Strategy Group examines new develop- ments, ﬁndings and trends in the innovation cycle and discusses speciﬁc proposals for strengthening the research and innovation system, resilience and technological sovereignty. Senate’s report National and European large-scale projects Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Large-scale project management plays a vital role in the success of Fraunhofer’s research and development projects by promoting structured planning and effective collaboration between institutes. The central management of complex projects ensures that quality standards are maintained while improving communication and coordination with diverse (internal and external) stakeholders and facilitating the goal-oriented development of strategic projects. This is particularly important for developing innovative solutions and accelerating the transfer of research ﬁndings into practice. Efﬁcient large-scale project management therefore contributes signiﬁcantly to Fraunhofer’s competitive standing and strategic positioning in the German and international research environment. Examples of large-scale projects coordinated within the Fraunhofer-Gesellschaft include: Advanced Packaging and Heterogeneous Integration for Electronic Components and Systems (APECS) Fraunhofer Heilbronn Research and Innovation Centers HNFIZ Fraunhofer Research Institution for Battery Cell Production FFB Fraunhofer Clean Aviation Strategic partnership between Fraunhofer and DESY APECS pilot line under the EU Chips Act The strategically signiﬁcant infrastructure project Advanced Packag- ing and Heterogeneous Integration for Electronic Components and Systems (APECS), implemented under the EU Chips Act, continued as planned during the ﬁscal year 2025. As part of this initiative, the Fraunhofer-Gesellschaft is responsible for coordinating and imple- menting one of the key European semiconductor research pilot lines for Research Fab Microelectronics Germany (FMD), a unique group of Fraunhofer and Leibniz institutes. Building on the pre- ceding project, Quantum and Neuromorphic Computing Modules (QNC), which served as a national precursor to the pilot line, the year under review saw the development of key components, pro- cesses and initial infrastructure modules for advanced packaging and heterogeneous integration. These projects are an integral part of the APECS pilot line and are designed to accelerate the transfer of research results to industrial application. The total project costs add up to around €730 million, approximately €509 million of which is attributable to investments and €231 million to operating expenses. More than 95 percent of the funding came from grants provided by the EU, the German federal government and the fed- eral states in which the participating institutes are located. APECS is an outstanding example of European collaboration: Seven leading research organizations are working in partnership with the Fraunhofer-Gesellschaft as part of this EU initiative. Together they are establishing a technology-neutral European value chain in the area of semiconductor packaging and integration. Despite isolated procurement delays, caused for instance by geopolitically induced supply bottlenecks and limited availability, the implemen- tation process is generally still on schedule. Continuous project oversight and close coordination with Corporate Procurement and the funding bodies have ensured that the planning and award processes are managed efﬁciently. The project is intended to make a signiﬁcant contribution to Europe’s technological sovereign- ty and supply security. It is strengthening the bridge between excellent research and industrial implementation while emphasizing the key role played by the Fraunhofer-Gesellschaft in the European innovation landscape in accordance with the digital strategy and the European Green Deal. Fraunhofer Heilbronn Research and Innovation Centers HNFIZ The Fraunhofer Heilbronn Research and Innovation Centers HNFIZ bring together diverse areas of expertise in Heilbronn. In 2025, 8 Fraunhofer institutes began establishing 9 such research and inno- vation centers in Heilbronn with funding from the nonproﬁt Dieter Schwarz Foundation. The HNFIZ initiative addresses key future topics in the areas of AI and digital transformation and works to advance them. In doing so, it focuses on close collaboration with small, medium-sized and large companies, organizations and public institutions in the Heilbronn region and beyond. Working closely with educational institutions and innovation stakeholders in the Heilbronn region will create a unique scientiﬁc ecosystem that promotes intensive knowledge transfer and the commercialization of research results. In 2025, the centers garnered considerable attention by publishing a Fraunhofer transformation index and holding an international symposium on quantum AI. Fraunhofer Research Institution for Battery Cell Production FFB The development and production of batteries as a key technology is a vital factor in the technological sovereignty of Germany and Europe and in climate-neutral transportation and energy supply. One of the goals of the HTAD is to build a competitive bat- tery production and value chain by 2035 and to integrate it into a European production network. The establishment of the Fraunhofer Research Institution for Battery Cell Production FFB as a bridge between science and industry is a major step in this 12

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information direction, since it enables new battery technologies to be scaled up and transferred from the laboratory to industrial application. Companies and research institutions can test and optimize pro- duction processes in a globally unique digital research infra- structure with a modular design. Fraunhofer FFB brings together expertise in ﬁelds such as the automotive industry, mechanical engineering and chemistry while contributing to the training of skilled personnel. The facility is being built in two construction phases. The German federal government is contributing up to €500 million in project-based funding, while the state of North Rhine-Westphalia is providing approximately €320 million. The FFB PreFab pilot plant was opened in 2024, while the FFB Fab for gigafactory-level production and scaling research is currently under construction. Another major milestone was reached in December 2025 with the production of the first electrically functional lithium-ion bat- tery cell at the FFB PreFab pilot facility. This was the ﬁrst ever realization of a complete process chain using exclusively European manufacturing technology at all stages from electrode manufac- ture through to the charged cell. Fraunhofer Clean Aviation The institutional European Partnership for Clean Aviation (EPCA) was launched with the goal of achieving climate neutrality by 2050. Its mission is to pave the way for safe, reliable, affordable and sustainable air transport. As with the predecessor programs Clean Sky 1 and 2, Fraunhofer is one of the founding members. In 2025, Fraunhofer was involved in 12 of the 28 clean avia- tion projects. The participating institutes received funding in the amount of just under €20 million, of which €5.97 million was allocated in 2025. In 2026, the number of projects will increase to 14, bringing in an additional €2.68 million in funding for 2026 and 2027. Each project can involve 50 or more partners in the European aviation sector, including Airbus, Rolls-Royce, ATR G.I.E. and Lufthansa. Further projects are expected in calls 4 and 5. Strategic partnership between Fraunhofer and DESY On February 25, 2025, the Fraunhofer-Gesellschaft and Deutsches Elektronen-Synchrotron (DESY), a leading research institution in the ﬁeld of particle accelerators, signed a framework agreement governing their strategic collaboration. The two organizations aim to pool their expertise, infrastructure and knowledge with the goal of accelerating the transfer of research ﬁndings into industrial application. One key element of the collaboration is Fraunhofer’s prioritized access to the Positron-Electron Tandem Ring Accelerator III (PETRA III), one of the world’s most powerful synchrotron radi- ation sources. Synchrotron radiation is a special form of light that makes it possible to analyze materials at atomic level. Fraunhofer has secured an annual allocation of beamtime for 2026 and aims to provide faster, simpler access to the PETRA III experi- mental stations and infrastructure for Fraunhofer projects involving industry partners. This prioritized access has the potential to boost the competitiveness of the Fraunhofer institutes and to give them a strategic advantage in applied synchrotron research. The strategic partnership between Fraunhofer and DESY brings together cutting-edge infrastructure and applied research, thus laying the foundations for innovative solutions that will beneﬁt industry and society alike. International collaboration The Fraunhofer-Gesellschaft’s activities in international research markets aim to create scientiﬁc value within the organization and to generate added value for Germany and Europe as well as part- ner countries. In the majority of their international collaborations, the Fraunhofer institutes work directly with industry and research partners in European and global research markets. The total project value of these partnerships on the part of the institutes amounted to €393 million (excluding license-fee revenue) in 2025. Fraunhofer has developed various models to generate excellent scientiﬁc content and create value for industry in collaboration with attractive partners worldwide. The 9 legally independent Fraunhofer foreign 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 Fraunhofer-Chalmers Research Centre for Industrial Mathematics FCC (in Sweden) Fraunhofer Singapore Research Ltd. Fraunhofer Spain Research Foundation The foreign afﬁliates act as legal entities for 13 research centers outside of Germany. These institutionalized Fraunhofer partner- ships with local universities facilitate long-term research activities abroad. As their work is not proﬁt-oriented, the foreign afﬁliates generally qualify for base funding from their country of domicile. Their funding follows the Fraunhofer model. On October 10, 2025, a celebration was held to mark the ofﬁcial launch of a new foreign afﬁliate, the Fraunhofer Spain Research Foundation. Funded by the Spanish government, the govern- ment of Catalonia and the city of Barcelona, the new afﬁliate will conduct research based on the Fraunhofer model at a leading international location for biotechnology innovation. The ﬁrst center 13

technologies in the Ukrainian market. In 2025, the Fraunhofer Future Foundation allocated funding totaling €1.6 million to the special program. 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information to be brought under the umbrella of Fraunhofer’s newest foreign afﬁliate is the Fraunhofer Center for Applied Theragnostics CAT, which primarily focuses on research in the ﬁelds of bioengineering, biosensors and biomimetic systems for biomedical applications. The center’s partner institute is the Fraunhofer Institute for Biomedical Engineering IBMT, which specializes in stem cell processing technol- ogy and cell-based microsystems. International Fraunhofer representative ofﬁces in China, Brazil, India, Japan, and Korea function as liaison ofﬁces for network- ing and marketing. They provide local support for all Fraunhofer institutes in initiating and setting up partnerships with research partners from their respective countries. The representative ofﬁces provide the Fraunhofer research portfolio with crucial impetus thanks to their knowledge of the respective regional and local research landscape. The objective of the PACT (Program for Afﬁliate Cooperation and Knowledge Transfer) program and the associated R&D projects, commercialization activities, and initiatives is to create added value for the entire Fraunhofer network by increasing collabo- ration between the Fraunhofer foreign afﬁliates and Fraunhofer institutes. A total of 15 projects from the PACT program were approved in 2025, involving 3 foreign Fraunhofer afﬁliates, 6 cen- ters and 20 Fraunhofer institutes. Other international collaboration models include: Fraunhofer innovation platforms (FIPs) Long-term partnerships with international universities and research institutions; in 2025, there were 14 FIP partnerships in 11 countries ICON program Funding for three-year research projects with excellent interna- tional partners; in 2025, there were Fraunhofer researchers work- ing on 18 ICON projects with research institutions in 13 countries Fraunhofer International Mobility Program (FIM) Support for international networking through research visits lasting several months; in 2025, research visits for 11 Fraunhofer employees were funded, including placements in Yale Univer- sity (U.S.), Stanford University (U.S.), RIKEN (Japan) and at the University Hospitals of Strasbourg (France) Fraunhofer-Bessel Research Award As part of the award ceremony, top-level researchers are invited to undertake a research visit at Fraunhofer. In 2025, a research scientist from the University of Connecticut (U.S.) completed a research stay at the Fraunhofer Institute for Solar Energy Systems ISE, while a research scientist from the University of Guelph (Canada) spent time at the Fraunhofer Institute for Applied Optics and Precision Engineering IOF. Commitment in Ukraine The Alliance of Science Organisations in Germany has joined the International Coalition for Science, Research and Innovation in Ukraine under the guidance of the Fraunhofer-Gesellschaft. Leading international stakeholders have thus afﬁrmed their commitment to strengthening science, research and innovation in Ukraine. The new coalition is based on the Rome Declaration of Intent for Science, Research and Innovation in Ukraine, which was signed on July 11, 2025, during the Ukraine Recovery Con- ference (URC) in Rome. The signatories included the Ukrainian Ministry of Education and Science, the European Commission and the German Federal Ministry of Research, Technology and Space (BMFTR). In essence, the Rome Declaration is closely linked with the Ukraine Action Plan developed by the Alliance of Science Organisations in Germany and takes its funding policy objectives into account. Since 2023, the Fraunhofer Future Foundation has been funding nine technology transfer projects as part of the special program “Rebuilding Ukraine—resilient and sustainable.” These projects are being realized jointly with science and indus- try partners in Ukraine for the purpose of implementing new 14

2025 annual report Fraunhofer-Gesellschaft Business report Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Total business volume At €3.6 billion, the total business volume remained at the previous year’s level. Contract research is the Fraunhofer-Gesellschaft’s core activity, accounting for 88 percent of its total business volume, equivalent to €3.2 billion. Fraunhofer wins more than two-thirds of its contract research projects in open competition in the market while striving to maintain a balance between industrial revenue and public-sector revenue. The funding base is provided through institutional funding from the German federal and state govern- ments. Research with long-term funding that falls outside regular institutional funding is reported under a new item, additional research funding, which amounted to €219 million in the reporting period. Spending on major infrastructure amounted to €203 mil- lion, which includes €23 million in investments in the APECS pilot line under the EU Chips Act. These three segments will be dis- cussed in greater detail in the following sections. The total business volume encompasses personnel and non- personnel expenses in accordance with generally accepted accounting principles. It also includes capital expenditure at the full amount without depreciation and amortization. Starting in 2025, amounts drawn from reserves will no longer be offset against expenses. As a result, the total business volume now corresponds to the expenses reported in the income statement and excludes changes in the ﬁnancing of current assets. Personnel expenses amounted to €2,106 million in 2025. The 2 percent year-on-year increase was primarily due to the pay rise under the German Col- lective Bargaining Agreement for the Public Service (Tarifvertrag für den öffentlichen Dienst, TVöD), which came into effect on April 1, 2025. Non-personnel expenses were recognized at €942 million. In contrast, capital expenditure declined signiﬁcantly, falling by 10 percent to €526 million. Overall, the total business volume was in line with the previous year’s forecast. Fraunhofer total business volume in € million 2025: total business volume by budget in € million 3,563 3,574 167 260 203 219 3,404 164 249 2,915 234 163 3,049 189 245 2,518 2,615 2,991 3,136 3,152 2021 2022 2023 2024 2025 Major infrastructure Additional research funding Contract research 3,574 2,106 526 942 Personnel expenses Non-personnel expenses Capital expenditure 15

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Contract research Contract research encompasses Fraunhofer’s core activities and is ﬁnanced from three revenue streams: Project revenue from contract research in € million Industry contracts and license-fee revenue Publicly funded research projects Institutional funding Institutional funding is provided by the German Federal Ministry of Research, Technology and Space (BMFTR) and the state govern- ments in the ratio of 90:10. This forms the basis for groundbreak- ing pre-competitive research that will become important for the private sector and society in the years ahead. Despite the strained economic climate, Fraunhofer’s industrial revenue exceeded expectations, rising by 11 percent to €966 mil- lion. Revenue from contracts with industry increased by 9 percent to €768 million. License-fee revenue from industry amounted to €198 million. After being adjusted to account for a special effect on the balance sheet, this is equivalent to a 12 percent increase. At 48.0 percent, more than half of industrial revenue is attributable to customers from the manufacturing sector in line with the Euro- pean Community’s system for classifying business sectors (NACE classiﬁcation). Within this sector, the greatest total share of indus- trial revenue comes from projects with customers operating in the manufacture of computer, electronic and optical products, basic pharmaceutical products, electrical equipment and motor vehi- cles, or of machinery and equipment. The second largest share of industrial revenue, 27.8 percent, comes from customers engaged in professional, scientiﬁc and technical activities. These include, for example, companies in research and development, engineering ﬁrms and patent pool management companies. 2,167 2,162 2,220 836 867 966 1,907 1,738 787 723 1,015 1,120 1,331 1,295 1,254 2021 2022 2023 2024 2025 Industrial revenue Revenue from publicly funded projects 16

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Industrial revenue in 2025 by industry NACE code* based on the statistical classiﬁcation of economic activities in the European Community since 2008 % of total Cumulative Industrial revenue by industry (in % of total) C of which: Manufacturing 48.0% 48.0% 26 Manufacture of computer, electronic and optical products 28 Manufacture of machinery and equipment 29 Manufacture of motor vehicles, trailers and semi-trailers 21 Manufacture of basic pharmaceutical products and pharmaceutical preparations 27 Manufacture of electrical equipment Other manufacturing Professional, scientiﬁc and technical activities Information and communication Financial and insurance activities Other service activities Public administration and defense; compulsory social security Wholesale and retail trade; repair of motor vehicles and motorcycles Electricity, gas, steam and air conditioning supply Other sectors or no sector M J K S O G D 15.1% 7.1% 4.6% 3.7% 3.1% 14.4% S K J M 27.8% 4.6% 3.6% 3.0% 2.6% 2.1% 1.6% 6.7% 75.8% 80.4% 84.0% 87.0% 89.6% 91.7% 93.3% 100.0% * European Commission, Eurostat, (2008). NACE Rev. 2: Statistical classiﬁcation of economic activities in the European Community. Publications Ofﬁce. https://ec.europa.eu/eurostat/web/products-manuals-and-guidelines/-/ks-ra-07-015 O G D Other sectors C 17

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information At €1,254 million, the revenue from publicly funded projects generated in 2025 was lower than in the previous year. Project funding from the German federal government decreased by 11 percent to €755 million. Along with a decline in revenue from the German Federal Ministry of Research, Technology and Space (BMFTR), which fell by 8 percent to €413 million, the funding received from the German Federal Ministry for Economic Affairs and Energy (BMWE) decreased by 15 percent to €226 million, while funding received from other federal ministries fell by 14 percent to €116 million. In contrast, the project funding received from the German state governments rose by 23 percent to €186 million following a signiﬁcant decline the previous year. EU revenue also increased, rising by 9 percent to €157 million. This ﬁgure includes additional revenue from funding for the APECS pilot line. Other revenue increased by 3 percent to €156 million, including revenue from foundations, universities and other research funding institu- tions, and license-fee revenue of €2 million from customers outside of industry. In addition to being one of the Fraunhofer institutes’ criteria for success, the high share of funding coming from external proj- ect revenue is a unique selling point for the Fraunhofer- Gesellschaft. The share of project funding therefore serves both as a key performance indicator and as a guide for establishing an optimal funding mix in contract research. It is calculated as the share of project revenue in the operating budget, including imput- ed depreciation of capital assets (excluding project groups and special effects on the balance sheet). At 71.1 percent, the share of externally generated revenue in 2025 was in line with the previ- ous year. Within this ﬁgure, the share of project funding from the German federal and state governments fell to 30.1 percent, while the share of industrial revenue increased to 31.0 percent. 2025: Revenue from publicly funded projects in € millions Funding share in % 186 157 156 116 413 226 1,254 BMFTR BMWE Other federal ministries State governments EU Other revenue 71.3 71.1 32.8 31.0 28.8 30.1 4.7 5.0 2021 2022 2023 2024 2025 International revenue from industry contracts rose by 6 percent to €217 million, while other revenue increased by 10 percent to €19 million. €88 million of the total came from customers and partners within the EU and €148 million was generated by custom- ers and partners outside the EU. The largest international mar- kets were the U.S. with revenue of €40 million, Switzerland with €32 million and Japan with €21 million. Total project revenue (including other revenue, 2025: 5.0%) Industry Federal and state governments EU 18

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Additional research funding Additional research funding covers research activities with long- term funding outside the scope of regular institutional funding. In addition to defense-related research, this includes the Nation- al Research Center for Applied Cybersecurity ATHENE and the Fraunhofer Research Institution for Battery Cell Production FFB. ATHENE is operated jointly by the Fraunhofer Institute for Secure Information Technology SIT and the Fraunhofer Institute for Com- puter Graphics Research IGD in collaboration with the Technical University of Darmstadt, the Darmstadt University of Applied Sci- ences and Goethe University Frankfurt. Its research focuses on the protection of critical infrastructure such as electricity and transpor- tation systems and the security of IT systems. The center takes an interdisciplinary approach, combining IT and engineering with legal and economic issues, psychology and ethics. ATHENE is funded by the BMFTR and the federal state of Hesse at a ratio of 70:30 and had a budget of €26 million in 2025. The development and operation of the Fraunhofer FFB incurred expenses of €31 million in 2025. The BMFTR is providing a total of up to €500 million in funding for this large-scale initiative through project ﬁnance. Another €320 million is being provided by the fed- eral state of North Rhine-Westphalia for land acquisition and new construction. Fraunhofer FFB is to become the center for develop- ing modern, sustainable and scalable battery cell production for Germany and Europe. In the ﬁeld of defense research, Fraunhofer has consolidated the research and development activities of seven Fraunhofer institutes that received institutional funding and ongoing project funding from the German Federal Ministry of Defence (BMVg) in 2025. The objective of these R&D activities is to provide people, infrastructure and the environment with the best possible protection against potential security threats resulting from natural disasters or military, technological, terrorist or criminal activity. Following a signiﬁcant increase in the previous year, expenditure on defense research fell to €162 million. Institutional funding from the BMVg decreased by €5 million to €93 million, while project funding from the BMVg fell by €11 million to €69 million. Additional research funding in € million 245 249 260 82 21 59 163 15 15 58 75 83 84 24 54 87 52 30 80 219 31 26 69 98 93 2021 2022 2023 2024 2025 Fraunhofer FFB project funding (BMFTR) ATHENE base funding (BMFTR and state of Hesse) BMVg project funding BMVg base funding 19

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Major infrastructure Major infrastructure covers building projects and the purchase of scientiﬁc instruments and furnishings for new facilities. Expendi- ture on the construction and equipping of new facilities rose to €180 million. Expenditure on building projects rose by €11 million to €159 million, most of which (€113 million) was attributable to large-scale building projects. Capital expenditure on equipping new facilities increased by €2 million to €21 million. Special funding for major building projects and the equipping of new facilities is provided by the federal and state governments in a 50:50 ratio. The state governments often provide additional funding from the Euro- pean Regional Development Fund (ERDF), which reduces the fund- ing required from federal and state governments by an equivalent amount. The funding required from the German federal and state governments totaled €177 million. ERDF funds from the German state governments and other revenue accounted for €3 million of project revenue. Beginning in 2025, investments in the Advanced Packaging and Heterogeneous Integration for Electronic Components and Sys- tems (APECS) infrastructure project, which is being implemented under the EU Chips Act, will be reported separately under “Major infrastructure.” With total funding amounting to €730 million, APECS is being co-ﬁnanced by the European partnership Chips Joint Undertaking and by national funding from eight European countries. Two-thirds of the German funding is being contributed by the German Federal Ministry of Research, Technology and Space (BMFTR), while one-third is being provided by the participating federal states (see “National and European large-scale projects”). In 2025, the APECS pilot line received €23 million in capital expenditure through project funding under “Major infrastructure.” Expenditure of €54 million on the preliminary project Quantum and Neuromorphic Computing Modules (QNC), which was completed at the end of 2025 and forms part of the APECS pilot line, was again reported under contract research. Major infrastructure in € million 234 1 61 189 203 23 21 37 164 167 19 31 133 148 159 172 152 2021 2022 2023 2024 2025 2025 Capital expenditure on APECS pilot line Research Fab Microelectronics Germany (FMD) Equipping of new facilities Building projects 20

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Financial and net asset position At December 31, 2025, the Fraunhofer-Gesellschaft had total assets of €4,809 million, down €28 million or 0.6 percent year on year. Assets presented in the ordinary accounts comprised 99.7 per- cent of total assets, with the remaining 0.3 percent accounted for by the capital of the nonproﬁt organization. Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Noncurrent assets accounted for 67 percent of assets and were €85 million higher at €3,243 million. This increase was chiefly attributable to the fact that capital expenditure on property, plant and equipment exceeded depreciation. Property, plant and equip- ment grew by €88 million to €3,169 million. Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Current assets accounted for 31 percent of assets and were €124 million lower at €1,498 million. Work in progress increased by €198 million, driven by new funding programs from the German federal states and new projects for the APECS pilot line. Receivables from the German federal and state governments relating to base funding decreased by €10 million to €387 million, including receiv- ables for funding approved during this ﬁnancial year. Their avail- ability beyond the end of the ﬁscal year is ensured by the budget instrument known as “independent resource management.” As a result, these include “Selbstbewirtschaftungsmittel” (SBM, resources managed independently) amounting to €357 million from the German Federal Ministry of Research, Technology and Space (BMFTR) and SBM amounting to €20 million from the German Federal Ministry of Defence (BMVg). Receivables from the German federal and state governments from project billing (including contracts) decreased by €151 million to €147 million. Receivables from afﬁliated companies increased by €0.7 million to €1.1 million. Bank account balances (including cash and cash equivalents) rose by €6.5 million to €24.7 million. The value of the securities portfolio was €92 million lower, at €231 million. €231 million of this amount corresponds to the license-fee revenue reserve. Liabilities decreased by €3 million to €729 million. In addition to a decrease of €26 million in unappropriated grants from the federal and state governments relating to institutional funding and project billing, the trade payables and accounts payable to afﬁliated companies rose by a total of €23 million. Other current liabilities remained unchanged year on year at €27 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 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 grant authorities under base funding arrangements and can use its reserves as needed. The Fraunhofer funding model has proved its worth in times of crisis and is built on a solid foundation. The Fraunhofer Future Foundation, established in 2008, is a legally independent institution that supports technology-oriented research projects at the Fraunhofer institutes in line with the stat- utes. The foundation added a total of €7 million to the expend- able capital in 2025. These additions result from pro-rata returns from successful foundation projects, repayable grants, revenue from asset management and donation income. The Fraunhofer Future Foundation provided €11 million in funding for projects at Fraunhofer institutes in 2025. Expendable capital decreased from €83 million to €78 million. At €15.7 million, there was a slight increase in equity, which consists of nonproﬁt organization capital not funded from grants. A sum of €11,525 was withdrawn from the reserves for statutory purposes. The extraordinary item “License-fee revenue reserve for statu- tory purposes” decreased by €97 million to €231 million in the reporting year. Of this, €24 million was allocated to the extraor- dinary item “Financing of current assets” to pre-ﬁnance projects funded by third parties. An additional €14 million was used to meet obligations, relating in particular to the partial funding of high-performance centers and the expansion of photovoltaic systems. A further €60 million was drawn from the reserve in order to balance the budget and cover additional requirements at the Fraunhofer institutes. The extraordinary item “Grants relating to noncurrent assets” was €84 million higher at €3,231 million. The extraordinary item “Financing of current assets” amounts to €222 million at the reporting date and is used to account for rev- enue not yet received, less expenses not yet paid, by the reporting date. A sum of €5.3 million was used from the extraordinary item “Financing restructuring measures,” which was set up to ﬁnance the restructuring of the cleanroom infrastructure. The remaining funds, which amounted to €4.7 million, were released in full. As of the reporting date, the extraordinary item “Payments from patent sales” amounted to €18 million, €8 million down on the previous year. Provisions fell by €40 million to €354 million, with the decline attributable in equal measure to provisions for personnel and non-personnel expenses. Unused provisions amounting to €38 mil- lion were released. Provisions with maturities of more than one year amounted to €50 million. In the case of pension and compen- sated leave provisions, a corresponding amount of receivables from the German federal and state governments totaling €123 million was recognized on the asset side of the balance sheet. 21

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Shareholdings and spin-offs At the reporting date, the Fraunhofer-Gesellschaft held equity investments in 83 companies across a broad range of sectors. The transfer of technology to industry formed the focus of activi- ties at 53 of the companies in the investment portfolio, while a further 21 equity investments were of a strategic nature. Equity investments also include 9 afﬁliated companies. In 2025, the Fraunhofer-Gesellschaft invested a total of €3.5 million in the acquisition of equity interests in shareholdings. The portfolio was expanded by another four companies, with the Fraunhofer- Gesellschaft investing €0.4 million in their share capital. Further- more, 3 foreign Fraunhofer afﬁliates were reclassiﬁed as afﬁli- ated companies following a reassessment. These had previously been listed under other legal forms for information purposes. Fraunhofer also sold its shares in 4 companies during the same period. The total carrying amount of shareholdings (including shares in afﬁliated companies) increased to €36.8 million (previous year: €36.0 million). Proceeds from the divestiture of sharehold- ings came to €1.9 million. Spin-offs are an integral part of Fraunhofer’s strategy for leveraging its industrial property rights. In individual cases, Fraunhofer takes a minority equity stake in the spin-off as part of its technology transfer activities. In 2025, Fraunhofer Venture provided support to 89 new spin-off projects. Across Fraunhofer as a whole, 29 new spin-offs were established. Fraunhofer AHEAD offers a networking platform for early-phase spin-off and licensing projects with the national entrepreneurship ecosystem. As well as the general AHEAD program, there are also specialized tracks in the ﬁelds of Sustainable Development Goals and life sciences. on a worldwide basis. The revenue from these pools is reinvested in pre-competitive research, thereby helping strengthen Germany’s position as a research hub for the long term. Revenue from the licensing and sale of IP amounted to approximately €200 million. Exploitation of intellectual property rights In 2025, Fraunhofer continued to pursue its intellectual property (IP) strategy with a clear focus on securing long-term patent protection for inventions with strong potential for exploitation. The institutes are aligning decisions on patent applications and maintenance even more closely with strategic and economic criteria to ensure that resources are used efﬁciently and IP portfo- lios streamlined further. The Fraunhofer institutes are also making extensive use of the far-reaching international coverage offered by the EU unitary patent. In 2025, 589 inventions were reported and 538 patent applications claiming rights of priority were sub- mitted. The European Patent Ofﬁce’s Technology Dashboard 2025, formerly the Patent Index, identiﬁes the Fraunhofer-Gesellschaft as the leading European research institution for patent applications. The portfolio of active patent families remained stable year on year at around 7,000. This shows that the targeted focus and consoli- dation of the IP strategy is proving successful, allowing Fraunhofer to maintain a high level of intellectual property protection even in increasingly challenging economic conditions. Patent applications claiming rights of priority 521 538 439 406 375 Fraunhofer has set itself the goal of increasing not only the number of spin-offs but also their proportional contribution to overall industrial revenue. Fraunhofer’s innovation hub AHEAD offers a package of targeted entrepreneurship measures and programs to help achieve this. Overall, 60 teams took an active part in the Fraunhofer AHEAD program in 2025. In-depth workshops and coaching sessions are provided to teach entrepreneurship. In general, Fraunhofer generates revenue from the commercial exploitation of IP rights by concluding licensing agreements. 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. Together with other patent holders from different countries whose patents are relevant to standards, Fraunhofer uses various patent pools to issue licenses 2021 2022 2023 2024 2025 22

2025 annual report Fraunhofer-Gesellschaft Sustainability aspects Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Responsible corporate governance Fraunhofer works with partners from science, industry and society to develop solutions for the future. The Fraunhofer-Gesellschaft’s research and technology transfer activities make a vital contri- bution to the development of innovative approaches addressing environmental, economic and societal challenges. Transferring research ﬁndings to practice provides support to companies in achieving their sustainability targets and developing resource- efﬁcient products and services. Sustainability is also an integral element of responsible corporate governance at the Fraunhofer-Gesellschaft. Fraunhofer has been a member of the UN Global Compact since 2017 and is commit- ted to the ongoing implementation of its ten principles and to supporting the Sustainable Development Goals (SDGs). This commitment is upheld by an established compliance management system. Overall responsibility for sustainability rests with the president of the Fraunhofer-Gesellschaft. Sustainability is seen as a cross- cutting responsibility shared by all executive units. The Sustain- ability Management department, which reports to the Presiden- tial Ofﬁce, coordinates sustainability activities across Fraunhofer in close cooperation with the relevant specialist departments. Furthermore, an interdisciplinary sustainability working group brings together the strategic and operational measures needed to achieve the organization’s sustainability goals. Sustainability considerations are integrated into corporate governance in order to strengthen the effectiveness and resilience of the organization and ensure it responds appropriately to regulatory, technological and societal change. Principles of corporate governance Fraunhofer is a nonproﬁt association registered under German law with a governance structure oriented toward transparency, accountability and efﬁciency. The organization is primarily governed by the executive board and the senate. The executive board of the Fraunhofer- Gesellschaft currently operates as a collective body consisting of the president and chair of the executive board together with 4 additional members. It is responsible for the general management of the organization and for its strategic direction. The conduct of the executive board shapes the corporate culture and, for the Fraunhofer-Gesellschaft as a whole, ensures a coherent research portfolio that meets both legal and scientiﬁc standards. The execu- tive board establishes and implements the framework necessary for the lawful, proper and cost-effective management of the organi- zation’s activities and those of its institutes and research units. This is achieved through guidelines and control systems. The senate, which comprises up to 26 representatives from research, industry and government, is responsible for advising the executive board, monitoring its activities pursuant to section 13(1) of the Fraunhofer statutes, appointing its members, approving the business plan and making recommendations regarding the establishment of the central elements of the science and research strategy pursu- ant to sections 13(6c) and (7b) of the Fraunhofer statutes. The senate is supported by three standing committees drawn from among its members: the audit committee, the committee for executive board affairs and the nomination committee. The Fraunhofer-Gesellschaft has had an established compliance management system (CMS) in place since 2010. This is regular- ly adapted to reflect increasing regulatory requirements and the growing complexity of the research ecosystem. The CMS is based on a compliance framework consisting of clearly deﬁned regula- tions, roles and responsibilities, including for sustainability. This framework was developed in cooperation with the research units. The Fraunhofer-Gesellschaft’s code of conduct, which was revised and updated during the reporting year, deﬁnes the core values and principles that guide the actions of all employees as well as those of the executive board and senate. It provides the framework for conduct grounded in integrity and responsibility, while emphasizing the importance of trust, respect and fairness in Fraunhofer’s everyday scientiﬁc and administrative work. The Fraunhofer whistleblower system was established in com- pliance with the German Whistleblower Protection Act (Hinweis- geberschutzgesetz, HinSchG) and facilitates internal and external reporting of potential legal violations. It also encompasses mea- sures to protect whistleblowers and prevent retaliation. The CMS also includes mechanisms for preventing and combat- ing corruption and bribery. These are reviewed and expanded on a regular basis. The ﬁndings of these analyses are used to devel- op various training concepts, with particular attention paid to work areas identiﬁed as vulnerable to corruption. 23

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Environmental responsibility The Fraunhofer-Gesellschaft’s environmental responsibility cen- ters ﬁrst and foremost on climate-friendly research processes and sustainable infrastructure design. In its climate strategy, adopted in 2020, the Fraunhofer-Gesellschaft pledged to signiﬁcantly reduce its absolute greenhouse gas (GHG) emissions. Using 2019 as the baseline year, the emissions1 reported in accor- dance with the Greenhouse Gas (GHG) Protocol are to be reduced by at least 55 percent by 2030. Furthermore, Fraunhofer aims to achieve net zero greenhouse gas emissions in its scientiﬁc opera- tions by no later than 2045. Since the end of 2020, measures have been systematically implemented across all three scopes in order to achieve these goals. These measures are designed for example to increase energy efﬁciency, to support the transition to renewable energies, to promote climate-friendly transportation and to reduce climate-relevant gases during the research process. The Climate Management department at headquarters is responsible for overall management and progress monitoring. Energy efficiency Improving energy efﬁciency is a key lever for achieving the Fraunhofer-Gesellschaft’s climate targets. In 2023, four regional energy efﬁciency and climate action networks were launched as a step in this direction. The ﬁrst review in May 2025 showed clear signs of progress: The implementation of around 100 measures is expected to reduce annual energy consumption by approximately 6.4 gigawatt-hours (GWh). This is equivalent to roughly 27 per- cent of the overall target of 23.5 GWh per annum and is expected to cut preventable CO2 emissions, expressed in CO2 equivalents (CO2e), by approximately 2,250 tons per year. A total of just under €7 million was invested in these measures, with an average pay- back period of around 6.3 years. The measures implemented focus primarily on optimizing ventilation and cooling systems, expanding photovoltaic (PV) systems and modernizing lighting, compressed air and heat supply systems. The Fraunhofer energy efﬁciency and climate action networks and, with them, the 43 participating institutes, have been part of Germany’s nationwide Initiative for Energy Efﬁciency and Climate Action Networks since 2025. Overall energy consumption In 2025, the Fraunhofer-Gesellschaft’s total energy consumption amounted to 433 GWh2, with electricity accounting for the largest share. In 2025, Fraunhofer used 250 GWh of grid-supplied (not self-generated) electricity, mainly to operate data centers and research facilities such as clean rooms, electrolyzers and melt- ing furnaces. A further 93 GWh was attributable to natural gas consumption, 88 GWh to the use of district heating (steam) and cooling, 2.2 GWh to heating oil and 0.8 GWh to the use of wood chips for heating. The slight increase in energy consumption com- pared to 2024 (+3 GWh) is explained by increased heating demand caused by the weather conditions in 2025. Since the green energy resolution came into effect in 2023, all electricity procured under the Fraunhofer framework agreement has come from renewable sources (based on canceled guarantees of origin in accordance with section 42 of the German Energy Industry Act (EnWG)). Renewable energy can therefore be assumed to account for at least 52 percent of Fraunhofer’s total energy consumption. The number of Fraunhofer-owned photovoltaic (PV) systems increased to 60 in 2025, with 10 additional systems connected to the grid during the year. As of December 31, 2025, Fraunhofer had installed 3.7 megawatts peak (MWp) of solar power generation capacity for its own use, generating around 3.3 GWh of renewable electricity per year. Fraunhofer also successfully concluded its first power purchase agreement (PPA). The Fraunhofer Research Institution for Battery Cell Production FFB concluded a solar PPA with the utility company Stadtwerke Münster with effect from November 1, 2025. Accord- ing to this agreement, 6.36 GWh of regional green electricity will be delivered to Fraunhofer FFB every year via a direct connection for use in operating the research fab FFB PreFab. Climate-relevant gases from research processes In addition to energy-related emissions, particular importance is attached to greenhouse gas emissions from the use of climate-relevant process gases in certain research ﬁelds, especially in microelectronics and clean room technology. These gases, most of which are fluorine and nitrogen compounds, can in some cases have high global warming potential and therefore require close attention. An organization-wide procedure for recording and eval- uating these emissions is currently being developed as part of the Fraunhofer climate strategy. This will progressively quantify them and identify ways to reduce them. Initial pilot measurements have already been taken. 1 Fraunhofer’s GHG inventory and climate targets as of December 31, 2025, do not contain a full record of the relevant GHG emissions deﬁned under scope 3.1 and 3.2. This is due primarily to the complexity of the data collection process. 2 This is a forecast value. Since not all the consumption data for 2025 was available at the time the report was prepared (coverage = 89.4%), a trend analysis based on available meter readings and comparisons with the previous year’s consumption was issued for each energy source. These analyses were then used to forecast the total energy consumption. 24

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Employees As at December 31, 2025, Fraunhofer had 30,898 employees. This represents a 3.1 percent decrease in headcount (979 individu- als) since the previous year. The number of research, technical and administrative (RTA) staff dropped by 1.4 percent (341 individuals). 2025 also saw the number of research staff decrease by 304 or 2.3 percent year on year. Based on the new classiﬁcation of student employees (see note to the chart), the number of students was down 8.6 percent (611 students) on the previous year. As of December 31, 2025, 548 individuals were undergoing voca- tional training at Fraunhofer. This represents a decrease of 27 train- ees (4.7 percent) compared with the previous year. The biggest absolute decline was noted in vocational training programs leading to a recognized chamber qualiﬁcation (19 individuals or 3.8 per- cent). However, the biggest decline by percentage was recorded in the cooperative study programs that did not lead to a recognized chamber qualiﬁcation. As of December 31, 2025, 57 people were employed in these programs, down 9 (13.6 percent) from the previous year. Note on the chart Since mid-2024, Fraunhofer has been gradually converting employment contracts for students not involved in scientiﬁc work into student employee contracts under the German Collective Bargaining Agreement for the Public Service (Tarifvertrag für den öffentlichen Dienst, TVöD). They were originally classiﬁed as RTA staff. However, they have now been recategorized as students with retroactive effect from the end of 2024 in order to provide consistent time series for RTA staff and students. The ﬁgures originally reported for 2024 are presented in gray and in parentheses (255 student employees counted as RTA staff, now classiﬁed as students). Fraunhofer employees (number at year-end) 30,028 511 7,877 30,350 31,942 31,877 512 575 505 7,415 7,887 7,127 (6,872) 30,898 548 6,516 21,640 22,430 23,543 24,175 (24,430) 23,834 2021 2022 2023 2024 2025 Trainees Students RTA staff Diversity in the workforce The Fraunhofer-Gesellschaft is actively committed to gender equality. Women make up 36.3 percent of the workforce across all employee groups. Employee groups Women Total Percentage of women RTA staff 8,845 23,834 37.1% University students 2,183 6,516 33.5% Trainees Total 186 548 33.9% 11,214 30,898 36.3% 25

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report For the following analysis, the RTA employee group is divided into research staff and non-research staff. As of December 31, 2025, women accounted for 52 percent of non-research staff, while 24.4 percent of research staff were women. The breakdown by level is as follows: As part of the Pact Agreement for 2026 to 2030, speciﬁc tar- gets have been set to increase the proportion of female research scientists, especially in management positions, using the Fraunhofer-specific cascade model.1 The targets for 2025, 2028 and 2030 are as follows: Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Non-scientific employees (research support, administration, infra- structure) as of December 31, 2025 Research staff (pay group 13 upwards with scientiﬁc responsibilities) as of December 31, 2025 Fraunhofer-specific cascade model Proportion of female research staff (pay group 13 upwards with scientiﬁc responsibilities) Senate’s report Women Total Propor- Women Total Propor- Goal Goal Goal Review of Fraunhofer research tion of women tion of women Dec. 2025 Dec. 2028 Dec. 2030 Finances Level 1 5 11 45.5% 18 107 16.8% Institute directors About Fraunhofer Level 2 399 865 46.1% 468 2,528 18.5% Level 1 Publisher’s information Level 3 5,308 10,100 52.6% 2,647 10,223 25.9% Level 2 Total 5,712 10,976 52.0% 3,133 12,858 24.4% Level 3 Total 19% 20% 21% 27% 26% 25% 25% 23% 29% 28% 28% 28% 25% 30% 29% (institute directors and directors at headquarters) Note on the tables Level 1: employees at management level 1 Level 2: employees at management levels 2–5 Level 3: employees without management responsibilities (individuals without management responsibilities) (managers below institute management level) 1 German Joint Science Conference, Pact for Research and Innovation (page only available in German) In 2025, women accounted for 16.8 percent of research sci- entists at level 1 (previous year: 16.8 percent). This means the 2025 target of 20 percent was missed by 3.2 percent. At level 2, 18.5 percent of the research scientists were women (previous year: 18.2 percent), again falling short of the target of 21 per- cent (deviation 2.5 percent). The smallest deviation from the cascade target was recorded at level 3, where 25.9 percent of the research scientists were women (previous year: 26.1 percent), just 1.1 percent short of the target. The measures currently being undertaken to consolidate the Fraunhofer-Gesellschaft are making it signiﬁcantly more difﬁcult to achieve the cascade goals. Nevertheless, Fraunhofer is still implementing targeted programs and structurally embedded measures in an endeavor to increase the percentage of women in the workforce and in management positions and thus to reach the targets agreed. Initiatives such as the equal opportunities support program and the diversity funding program are strengthening the professional development of women. The TALENTA career program focuses on all three levels of the Fraunhofer cascade model, thus promoting the development of female scientists in management positions. As of December 31, 2025, the proportion of employees with severe disabilities or equivalent status stood at 2.94 percent. As of the same date, there were 701 employees with severe dis- abilities or equivalent status in the RTA category (+22) along with 16 trainees (+4). 26

2025 annual report Fraunhofer-Gesellschaft Opportunities, risks and outlook Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Opportunity management One of Fraunhofer’s unique selling points in the German research landscape is its large proportion of contract research for indus- try, i.e. the transfer of research ﬁndings to businesses of all sizes. This also offers a major opportunity for Fraunhofer to contribute to the forward-looking transformation of the German economy with greater competitiveness, productivity and sustainability. For exam- ple, Fraunhofer is heavily engaged in industrial artiﬁcial intelligence (AI) and robotics, materials and recycling science, as well as energy technologies. It sees strong potential for innovation and improve- ment in these areas through partnerships with industry. Fraunhofer helps companies turn scientific findings into new technologies, supporting them every step of the way from idea to market launch and potentially giving them a technological and competitive edge in international markets. The impact of applied research can extend well beyond the direct beneﬁts for customers: Fraunhofer institutes help improve the performance and productivity of companies while strengthening public acceptance of modern technologies. They also ensure that the next generation of scientiﬁc and technical personnel have access to sound vocation- al training and continuing education. The Fraunhofer institutes, with the support of Fraunhofer head- quarters, conduct active opportunity management by independent- ly focusing their portfolios on promising unique selling points in pioneering technologies. This focus takes into account external dynamics that are highly relevant to the applied research frame- work and have the potential to cause technological and global disruption. In 2025, these criteria were met by three exceptionally dynamic developments: the adoption of the High-Tech Agenda Germany (HTAD) the growing importance of defense research research in a world shaped by artificial intelligence (AI) These developments could have a critical impact on Germany’s future. The Fraunhofer-Gesellschaft is well positioned to respond to these dynamics and is aware of the responsibility that comes with them. Adoption of the High-Tech Agenda Germany By adopting the HTAD, the German federal government has realigned its research and innovation policy with the aim of increas- ing value creation, competitiveness and technological sovereignty. The HTAD focuses on 6 key technologies and 5 strategic research ﬁelds. Implementation work began in the fall of 2025. Thanks to the institutes’ market knowledge and technological expertise, Fraunhofer was able to position itself early on as an implemen- tation partner for industry. In the summer of 2025, Fraunhofer presented 9 moonshot innovation briefs (MIBs) in key technologies such as AI, robotics, climate-neutral power generation, nucle- ar fusion, biotechnology and health. These directly support the HTAD’s goals of technological sovereignty and value creation. As part of the current HTAD implementation phase, Fraunhofer is participating in all roadmap processes for the key technologies and contributing to additional measures. In this way, it is actively fulﬁll- ing its role as an enabler in the innovation system. Growing importance of defense research Given the altered geopolitical security situation, Fraunhofer has the opportunity to make a signiﬁcant contribution to strength- ening national and European security and defense capabilities as a key player in security-related civilian and military research and development in Germany. In this context, the Fraunhofer institutes can offer extensive expertise and a wide range of enabling technol- ogies, including sensor technology, artiﬁcial intelligence, autono- mous systems, cybersecurity, secure communication and cryptog- raphy, new materials, specialized manufacturing technologies, and testing and inspection laboratories. To reflect the magnitude of this issue, expertise from all relevant specialist departments has been pooled in an internal project titled “Fraunhofer’s Contributions Toward Strengthening Germany’s Overall Defense.” The aim is to leverage cross-institute expertise and services as a means of closing defense-related capability gaps in Germany (and Europe). The sub-initiatives encompass the following: Capability development/technological sovereignty: strategic analysis to identify ways in which Fraunhofer can help reduce Germany’s (and Europe’s) external dependencies in security- related contexts Development of a practice-oriented guide to support civilian institutes wishing to conduct security-related research, e.g., for the German Federal Ministry of Defence (BMVg) or the security and defense industry Research in a world shaped by AI The Fraunhofer-Gesellschaft is both a user and a developer of artiﬁcial intelligence (AI). As such, it implements numerous research and development projects with the aim of promoting the use of AI as a means of safeguarding the competitiveness of German and European industry. Fraunhofer also develops and implements 27

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information AI tools designed to signiﬁcantly increase its internal efﬁciency. These systems can increase the speed, quality and transparency of processes and enable the provision of new services. In 2025, the Fraunhofer-Gesellschaft therefore decided to establish a dedicated directorate for AI systems to support research and administration within the organization. The directorate aims to increase the number of staff who use these AI applications by 20 percent each year. Decentralized organization and strategic research management The Fraunhofer-Gesellschaft’s decentralized structure, entrepre- neurial mindset and culture of learning from mistakes are keys to its opportunity management. Strategic research management in the form of centrally coordinated initiatives such as those described above can also strengthen the institutes’ prospects of success. Risk management and risks The Fraunhofer-Gesellschaft still has to contend with a complex risk landscape. The changed geopolitical security environment, macroeconomic uncertainty, volatile energy markets, stricter regulations and the impact of climate change are all part of the ongoing polycrisis observed since 2022. Fraunhofer is countering these challenges by consistently implementing its framework strategy and specialist strategies, enhancing cybersecurity measures, optimizing processes and accelerating digital transformation, steadily expanding sustainability initiatives. These measures are continuously strengthening Fraunhofer’s organizational and financial resilience. Despite the challenging environment, the likelihood of risks materializing that could pose a lasting threat to the continued existence of the Fraunhofer-Ge- sellschaft is generally considered to be low. At present, there are no tangible developments that would materially impair the Fraunhofer-Gesellschaft’s future viability. In the cyclical risk management process, risk experts in the special- ist departments carry out systematic, standardized risk assess- ments on a semiannual basis. Overarching high-level risk surveys of upper management are also conducted to supplement these efforts. In these surveys, managers identify what they believe to be the biggest risks to the Fraunhofer-Gesellschaft, regardless of the speciﬁc topics for which they are responsible, and propose actions to take to mitigate those risks. This information is used along with external risk assessments to review whether the information is complete and to perform plausibility checks. The risk surveys also collect data on sustainability and compliance topics with the aim of integrating the management systems more closely. This facilitates the early development of measures addressing environmental and social risks. It also enables compliance risks to be clearly identiﬁed, making them easier to analyze and helping to ensure that the Fraunhofer-Gesellschaft’s compliance goals are achieved. The risk committee reviews the signiﬁcant individual risks identiﬁed through the standardized risk inventory every six months along with the associated measures. For the annual report to the executive board, the relevant risks are grouped under the corresponding risk catego- ries and assessed as a whole. Additionally, the specialist depart- ments inform the executive board of relevant risk-related develop- ments—both routinely and on an ad-hoc basis—via the established reporting channels. In 2025, the frequency of the risk inventory and risk committee meetings was increased from once to twice a year. Furthermore, the risk management methodology was realigned to facilitate the planned implementation of a GRC risk management module (GRC = governance, risk and compliance). This has already improved the accuracy and scope of the risk data collection process. The Fraunhofer-speciﬁc risk classification model provides a framework for the semiannual risk assessment, which in turn serves as a basis for the risk report presented to the executive board. The ﬁrst layer of the model consists of four main areas of risk: business model, ﬁnancing, resources, and business operations. The second layer of the model assigns individual Fraunhofer-speciﬁc risks (cur- rently 21) to these four main areas. Business model risk encompasses types of risk that represent a threat to the continuation and further development of the Fraunhofer business model in speciﬁc areas. Cyclic risk management process Identiﬁcation Monitoring Analysis and assessment Control Reporting Improvement / further development process 28

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information In the context of financing risks, the focus is on containing risks that might limit Fraunhofer’s access to research funding or its solvency. the asset side. Fraunhofer’s asset management strategy takes a defensive approach to the selection of target investments. The risk of potential losses from future performance is classiﬁed as low to very low. Fraunhofer risk classification model Main risk areas Specific risk types Resources risk encompasses those types of risk that may affect the availability of tangible and intangible resources needed to success- fully carry out research activities. Business operations risk comprises those types of risk that may arise from research and administration processes or from conduct- ing speciﬁc research projects. Although the most recent risk inventory did not identify any material risks, the relevant risks are briefly outlined below. The Fraunhofer funding model is based on three revenue streams —industrial revenue, public-sector (project) funding and institu- tional funding—each of which contribute roughly one third to the organization’s revenue. All three revenue streams are associated with speciﬁc risks, while an additional challenge is posed by the need to maintain a balance between the different types of funding. Fraunhofer is responding to this situation by pursuing a targeted risk diversiﬁcation strategy and implementing holistic strategic measures focusing on efﬁciency, costs and revenue. Adverse eco- nomic conditions, including the persistently weak economy, digital disruptions, inflation, the energy crisis and ongoing geopolitical conflicts, are affecting the acquisition of industry contracts. At the same time, budget consolidation measures and the reor- ganization of the German federal government are making it more difﬁcult to acquire public research projects. Nevertheless, the volume of public projects has stabilized at a relatively high level. The HTAD is likely to help stabilize project revenue even further. The extraordinary item “License-fee revenue reserve for statutory purposes” is invested in securities classiﬁed as current assets on Dynamic developments in AI are transforming the entire research market in terms of both supply and demand. The institutes are actively adapting their business models and work methods to this changed environment with the support of the new directorate at headquarters (see “Opportunity management”). The secure handling of information and data is of paramount importance to any applied research organization. The cybersecurity risk situation is becoming increasingly acute. Against a background of ongoing global conflict and the rapid development of new AI-based methods of attack, cybersecurity threats such as ransom- ware, cyberespionage and social engineering are rising. Moreover, the legal and regulatory requirements governing information secu- rity are becoming more stringent. In view of this, the consistent implementation of the steps set out in Fraunhofer’s cybersecurity action plan and the ongoing development of its information secu- rity management system (ISMS) are matters of vital importance. The stepwise implementation of these measures is therefore being pursued with particular urgency. Since the beginning of the war in Iran on February 28, 2026, the geopolitical situation has deteriorated further. The ﬁghting and the blockade of the Strait of Hormuz have led to sharp increases in global oil and gas prices and caused further disruption to interna- tional shipping. The economic consequences are becoming partic- ularly apparent in the form of rising energy prices, a heightened risk of inflation and a general increase in global uncertainty. The Fraunhofer-Gesellschaft is continuously monitoring this situation as part of its risk management activities. Business model Finances Resources Business operations Grant law / state aid law and nonproﬁt status IP exploitation, spin-offs Corporate strategy and social responsibility Portfolio management International activities Institutional funding Funding for public projects Taxes and reporting Liquidity Other ﬁnancial risks Human resources IP, know-how IT infrastructure and business processes Research infrastructure Reputation, brand Public projects Industrial revenue Service performance, contractual risks Legal affairs and compliance Information security Governance, internal control systems At present, it does not appear that these developments will bring about any material change in the Fraunhofer-Gesellschaft’s risk situation in 2026. Energy costs (electricity, gas) are hedged by exist- ing contracts. Fraunhofer currently expects a moderate increase in energy costs in 2027. 29

2025 annual report Fraunhofer-Gesellschaft Foreword Contents However, rising prices could have a limited impact on industry proj- ects both in 2026 and in subsequent years, for instance by delaying individual international projects and making restraint or priority shifts necessary in industries that are vulnerable to economic trends. Due to the considerable overall increase in investment, Fraunhofer anticipates a slight increase in total business volume for 2026. Without this effect, the Fraunhofer-Gesellschaft’s total business volume would only be marginally higher than in the previous year. Executive board’s report The executive board 2025 management report Public project funding is also potentially subject to risks, particularly as a result of changing political priorities and possible further con- straints on public budgets due to inflation and higher energy costs. Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Outlook With regard to funding for contract research, Fraunhofer currently expects its external revenue to increase slightly in 2026. Industrial revenue is likely to see noticeably slower growth compared to the average achieved in previous years. After the declines seen in the last two years, Fraunhofer again expects a slight upturn in project revenue from the German federal and state governments. Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Fraunhofer is responding to the ongoing economic and politi- cal challenges in Germany and abroad by pursuing a policy of forward-looking consolidation, particularly in the core area of contract research. Business developments in 2026, particularly the forward-looking consolidation of contract research, will be supported by the ongo- ing reﬁnement of Fraunhofer’s internal mechanisms for ﬁnancial and strategic management. For 2026, Fraunhofer expects personnel costs to increase at a rate marginally lower than the collectively agreed pay rise due to a slight decline in staff numbers. Planning anticipates a slight year- on-year increase in non-personnel costs based on the assumption that there will be no crisis-related price spikes in major cost items at the Fraunhofer institutes in 2026. Overall, Fraunhofer expects a signiﬁcant increase in investment volume, driven primarily by exceptionally strong growth in the funding from the German federal and state governments and the EU invested in Research Fab Microelectronics Germany (FMD) as part of the APECS pilot line under the European Chips Act. Investments in the Fraunhofer Research Institution for Battery Cell Production FFB are likely to be another contributing factor. While large-scale building projects are expected to remain at a similar level to the previous year, current replacement and expansion investments in contract research are showing a marked decline compared to 2025. By transferring scientific results to market-ready innovations, Fraunhofer aims to play a signiﬁcant role in strengthening Germa- ny’s status as a hub for industry and innovation. This role is rooted in Germany’s highly specialized research landscape, in which each organization pursues its own mission and Fraunhofer serves as the bridge between research and industry. Needs-driven innova- tion is a key factor in economic and social stability and prosperity. Knowledge transfer is consequently a key focus of the German federal government’s innovation policy. The HTAD in particular sends a strong, clear signal in this direction and speaks directly to Fraunhofer’s core areas of expertise. With an eye to the markets of today and tomorrow, the Fraunhofer-Gesellschaft’s R&D portfolio focuses on key technologies with strong relevance for the future and is consistently aligned with the needs of its customers and partners across a wide range of industries. Fraunhofer insti- tutes serve both established sectors such as mechanical engi- neering, production, automation, chemicals, medical technol- ogy and energy and emerging markets such as quantum and microelectronic technologies, translational medicine, fusion technology, artificial intelligence and smart farming. Each Fraunhofer institute accordingly operates in highly diverse business ﬁelds with equally diverse economic conditions and requirements. In response to the current economic and geopolitical challenges, Fraunhofer, as a major research organization with close ties to indus- try, has developed measures to position itself strongly in the future. In doing so, Fraunhofer’s executive board sees itself as acting on its responsibility toward the organization’s employees and toward Ger- many as an industrial location. The executive board has been imple- menting a structured crisis prevention and response process in coop- eration with the directors of the Fraunhofer institutes since 2025. Beginning in 2026, this will be supplemented by a transformation process designed to safeguard the balance of the Fraunhofer model in the future. This is part of the framework strategy process launched by the executive board in 2024 to deﬁne the strategic direction of the Fraunhofer-Gesellschaft. This process uses tools to analyze and respond to critical situations with the aim of identifying economic challenges at the earliest possible stage, making an effective contribution to stabilizing the ﬁnancial situation and sustainably strengthening the future viability of the Fraunhofer institutes. The underlying point of reference is the Fraunhofer model, which stipu- lates that each institute’s incoming funding must be evenly balanced between industrial revenue and public-sector revenue. The aim is to perform regular analyses of all Fraunhofer institutes from an overall strategic perspective. Recommendations for each institute’s further development are derived from these analyses for crisis prevention purposes. In particularly challenging situations, extraordinary governance instruments can be used as part of the crisis response process. These are designed to identify appropriate measures and ensure they are implemented effectively. The strate- gy hub platform was created as a key element of the crisis preven- tion and response processes. Crisis prevention involves the use of objective analysis tools to obtain a systematic and comprehensive analysis and a well-founded evaluation of the Fraunhofer institutes. 30

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report The executive board 2025 management report Proﬁle, strategy and operating environment Business report Sustainability aspects Opportunities, risks and outlook Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information The goal is to proactively reduce the number of institutes in crisis situations and thus make an effective contribution to stabilizing the ﬁnancial situation and consistently improving the future viability of the Fraunhofer institutes. The strategy hub processes information objectively and transparently, particularly with the aid of the spe- cially developed TRAX indicator (TRAgfähigkeit im Fraunhofer- Modell IndeX, viability in the Fraunhofer model index). The strategy hub also supports the effective implementation of control process- es and ultimately assumes responsibility for quality assurance in crisis prevention and response processes. Furthermore, a multi- stage crisis response process has been established to support insti- tutes in crisis situations and guide them back to compliance with the Fraunhofer model using systematic governance instruments. Science and innovation are vital resources for our compet- itiveness. The Fraunhofer-Gesellschaft and its researchers stand ready to help shape the future in a spirit of partnership and to step up the transfer of knowledge and technology from science to industry. Standing shoulder to shoulder with our stakeholders, Germany’s great strength as a research hub allows us to look to the future with conﬁdence and build on the innovative capacity of Germany and Europe. The executive board would like to thank the members, supporters and, most of all, the employees of the Fraunhofer-Gesellschaft for their support, dedication and hard work in 2025. Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e. V. The executive board Holger Hanselka Elisabeth Ewen Constantin Häfner Sandra Krey Axel Müller-Groeling 31

Senate’s report 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report The senate’s report on the 2025 ﬁnancial year New senate members Review of Fraunhofer research Finances About Fraunhofer Publisher’s information 32

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report The senate’s report on the 2025 ﬁnancial year New senate members Review of Fraunhofer research Finances About Fraunhofer Publisher’s information The senate’s report on the 2025 ﬁnancial year Hildegard Müller, Chair of the Senate of the Fraunhofer-Gesellschaft Photo: Dominik Butzmann Germany and Europe depend on economic growth to safeguard freedom, values, employment and prosperity in the long term, to strengthen their geopolitical capacity for action and to guarantee the stability of Europe’s nation states. In 2025, the innovation report published by the Federation of German Industries (BDI) noted that industrial production had been stagnating for almost two years. Along with speed, determination and local conditions that can compete internationally, the most important factor in reversing this trend is innovation capacity. Fraunhofer institutes have long been key to maintaining the technological superiority of products made in Germany. As a vital link between research and industry, the Fraunhofer-Gesellschaft has played a central role in innovation and technology transfer since it was founded in 1949. The high proportion of contract research and joint research with commercial enterprises is Fraunhofer’s unique selling point within the German innovation system. Despite challenging economic conditions, the institutes succeeded in increasing their industrial revenue by 11 percent to €966 million in 2025. Overall, the total business volume amounted to €3.6 billion, €3.2 billion of which came from Fraunhofer’s core activity of contract research. This was due in no small part to the commitment of more than 30,000 Fraunhofer employees as well as the dependable cooperation between Fraunhofer, industry and the German federal and state governments. Outstanding examples of the Fraunhofer-Gesellschaft’s innovative capacity in 2025 included the production of the ﬁrst electrically functional lithium-ion battery cell at the PreFab facility of the Fraunhofer Research Institution for Battery Cell Production FFB. This was the ﬁrst ever realization of a complete process chain at all stages from electrode manufacture through to the charged cell using technology made exclusively in Europe. World records such as the doubling of the output of a thulium ﬁber laser developed at the Fraunhofer Institute for Applied Optics and Precision Engi- neering IOF attest to Fraunhofer’s technological excellence. The 29 newly established spin-offs, roughly €200 million in license-fee revenue and the 538 patent applications claiming rights of priority also testify to Fraunhofer’s use of all available channels to translate its outstanding applied research into market-ready technologies and realize their potential for value creation. As a driving force, Fraunhofer presented 9 moonshot innovation briefs early on in the implementation of the HTAD as a means of paving the way to innovation leadership for the country as an industrial hub. Fraunhofer’s strategic importance within the economic and scientif- ic landscape has also ampliﬁed the need for modern, future-ready governance. The entry into force of the new statutes and supple- mentary statutes on January 9, 2025, was therefore a signiﬁcant milestone. Among other things, these strengthened the senate’s advisory and supervisory role while forming standing commit- tees—the senate committee for executive board affairs, the audit committee and the nomination committee—to professionalize the senate’s work and bring it into line with the organization’s expanded role. As part of the Fraunhofer-Gesellschaft’s realign- ment and its commitment to resilient governance, 2025 saw the senate continue to address the conduct of former executive board members during the internal investigation. This task was carried out with due care and foresight in close cooperation with other stakeholders (grant authorities, the general meeting and others). Furthermore, Fraunhofer is continuing to cooperate fully with 33

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report The senate’s report on the 2025 ﬁnancial year New senate members Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Munich I public prosecutor’s ofﬁce. The senate is gleaning useful insights for the governance and compliance system, which it will implement on an ongoing basis; it is holding regular discussions with the executive board to this end. 2025 accordingly saw the senate fulﬁll the duties incumbent on it in line with the statutes. In addition to the 18 senate committee meetings, the senate met three times. The ﬁrst meeting took place on June 4 during the Fraunhofer annual assembly, while the second regular meeting was held on November 6. On March 17, the senate held an extraordinary meeting to discuss various matters including the establishment and funding of TT49 GmbH & Co. KG as a suc- cessor to the Fraunhofer Technology Transfer Fund (FTTF). 2026 until December 31, 2030 (subject to her being re-elected to the senate for a third term). Selection of auditor to audit the annual financial statements for 2026 to 2029 In 2025, the Fraunhofer-Gesellschaft issued a request for pro- posals for the annual audit in line with its rotation schedule. In its meeting on November 6, the senate—acting on the recom- mendation of the standing audit committee—selected KPMG as the new auditing ﬁrm for the audit of the 2026 annual ﬁnancial statements with the option of renewing the appointment annu- ally until 2029. Furthermore, the senate passed important resolutions on topics such as the following: The management report and annual ﬁnancial statements of the Fraunhofer-Gesellschaft were last audited in 2025 by the audit ﬁrm Rödl Audit GmbH, which again issued an unqualiﬁed audit opinion. Governance reform The new statutes also made it necessary to amend the general provisions in the statute of the institutes as well as the regu- lation governing the appointment of institute managers. Both statutes entered into force by resolution of the senate on June 4, 2025. Election of senate chair and two vice-chairs During its meeting on November 6, the senate proceeded to elect a chair and two vice-chairs. I was re-elected chair of the senate for the duration of my second term as a senate member, which will last from January 1, 2026 until December 31, 2029. Oliver Zipse was re-elected vice-chair and will remain in ofﬁce from January 1, 2026 until his departure on December 31, 2026 as provided for in the statutes. The other vice-chair is Anna-Katharina Wittenstein, who will serve from January 1, The senate would like to express its thanks to the executive board and all employees and partners of the Fraunhofer-Gesellschaft for their successful work during the 2025 ﬁscal year. I am conﬁdent that this commitment, our high degree of expertise and excellence and the creativity shown by our staff will allow us to continue making a crucial and valuable contribution to maintaining the position of Germany and Europe as a hub for industry. Hildegard Müller Chair of the Senate of the Fraunhofer-Gesellschaft 34

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report The senate’s report on the 2025 ﬁnancial year New senate members Review of Fraunhofer research Finances About Fraunhofer Publisher’s information New senate members Stefan Hartung, born in Dortmund, studied mechanical engineering at RWTH Aachen Univer- sity, where he gained his doctoral degree in 1993. He began his career at the Fraunhofer Institute for Production Technology IPT in Aachen, where he spent several years working at the interface between applied research and industrial appli- cation. There he gained valuable experience in various areas of responsibility, most recently in a leadership role. Hartung then moved to McKinsey & Company in Düsseldorf, where he advised inter- national corporations, initially in Cleveland (U.S.), and later became a principal and elected partner. In 2004, Hartung joined Bosch und Siemens Hausgeräte GmbH (now BSH Hausgeräte GmbH) in Munich. He has been chair of the board of management of Robert Bosch GmbH and a shareholder in Robert Bosch Industrietreuhand KG since January 1, 2022. His responsibilities include corporate strategy, corporate commu- nications, government relations and technology development. His remit also includes corporate research and advance engineering, intellectual property rights and the corporate department of Technology Manufacturing. Furthermore, he is responsible for Bosch Healthcare Solutions GmbH, Bosch Business Innovations GmbH and Bosch’s business in China. On taking over as chair, Hartung stressed that this new role would be an opportunity for him to channel his enthusiasm for technology even more effectively within the global high-tech company. Stefan Hartung is leading the company at a time of far-reaching change and profound trans- formation. Digitalization and AI are central to this process, as is electric mobility as a driver of sustainability. Under his leadership, the corpo- ration’s strategy Bosch 2030 has established a clear framework for its future direction. Hartung ﬁrmly believes that sustainable economic growth can only be achieved by constant innovation. The corporation is therefore continuing its policy of targeted investment in research and development with the aim of driving pioneering technologies and solutions. Bosch Ventures, for example, provides venture capital for startups around the world that aim to use their technologies to improve people’s quality of life or to safeguard natural resources—wholly in keeping with the corporation’s claim “Invented for life.” Stefan Hartung has been a member of the board of trustees at the Fraunhofer Institute for Manu- facturing Engineering and Automation IPA since 2013 and became a member of the senate of the Fraunhofer-Gesellschaft on January 1, 2026. Stefan Hartung | Dr.-Ing. | Dipl.-Ing. Mechanical Engineering | Ph. D. (summa cum laude) | Chair of the Board of Management of Robert Bosch GmbH Photo: Robert Bosch GmbH 35 “We need more tech-nological solutions to shape the profound transformation taking place in industry. Fraunhofer provides the momentum nec-essary for the rapid transfer of innova-tions to real-world applications.”Stefan Hartung

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report The senate’s report on the 2025 ﬁnancial year New senate members Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Ronja Kemmer | Double master’s degree in economics (Germany and Italy) | Member of the German Bundestag | Vice-chair of the CDU/CSU parliamentary groups for research, technology and space and for digitalization and public-sector modernization | Vice-chair of the CDU Baden-Württemberg Photo: Ronja Kemmer / Tobias Koch Ronja Kemmer studied economics in Tübingen and subsequently completed a double master’s degree in economics in Germany and Italy. She became involved in the youth organizations of the Christian Democratic Union (CDU) of Germa- ny at an early age, holding a number of exec- utive and leadership positions at various levels from district to federal. Kemmer was appointed vice-chair of the CDU in Baden-Württemberg in December 2025. She has been a member of the German Bundestag and the CDU presidential council since 2014 and is also deputy chair of the CDU/CSU parliamentary group. She became a member of CDU Württemberg-Hohenzollern’s regional executive committee in 2015 and was appointed chair of the CDU Alb-Donau/Ulm district association in 2023. Kemmer is an influential ﬁgure in German research and technology policy. Within her par- liamentary group, she is responsible for research, technology and space and for digitalization and public-sector modernization. In this role, she plays a key part in shaping the political frame- work within which scientiﬁc excellence, techno- logical innovation and industrial competitiveness can thrive. Her mission is to translate technologi- cal progress into practical beneﬁts for society and to strengthen Germany’s proﬁle as an innovation hub in the long term. Science and education have been key areas of Ronja Kemmer’s work ever since she started her political career. With her background in econom- ics, she has a sound understanding of innovation processes and their importance in transfer to industry. As spokesperson of the parliamentary study commission for artiﬁcial intelligence and a member of the digital transformation committee, she made a vital contribution to initiatives in the areas of AI, quantum computing, data spaces and sustainable digitalization, actively promoting their practical application. Today, she is widely viewed as an expert on digital transformation. Alongside her parliamentary work, Kemmer serves in a voluntary capacity as a member of the supervisory board of the Federal Agency for Breakthrough Innovation (SPRIND), a member of the advisory board of the Federal Network Agency, a member of the council of Agora Dig- ital Transformation and a member of the board of trustees of the German Trauma Foundation. She became an elected member of the senate of the Fraunhofer-Gesellschaft with effect from January 1, 2026. 36 “As the German federal government’s strategy for the future, the High-Tech Agenda goes straight to the place where the future will be decided: the transfer of knowledge to industry—exactly where Fraunhofer’s expertise lies.” Ronja Kemmer, M. Sc. Economics

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report The senate’s report on the 2025 ﬁnancial year New senate members Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Armin Papperger | Dipl.-Ing. Mechanical Engineering | Chair of the Executive Board of Rheinmetall AG Photo: Rheinmetall AG (revenue in 2024: €9.8 billion). Papperger empha- sizes that further investment will require close cooperation with government, since investments of this scale need a sustainable foundation. Papperger is a member of the supervisory boards of various Rheinmetall subsidiaries and joint ven- tures. He is an elected member of the presidential board of the Federation of German Industries (BDI) and has been president of the Federal Asso- ciation of the German Security and Defense Indus- try (BDSV) since 2014. Between 2013 and 2017, he was a member—and for some time the chair— of the board of trustees of the Fraunhofer Insti- tute for High-Speed Dynamics, Ernst-Mach-Institut, EMI in Freiburg. He became an elected member of the senate of the Fraunhofer-Gesellschaft with effect from January 1, 2026. Armin Papperger began his professional career at Rheinmetall after completing his mechanical engineering studies in Duisburg in 1990. He was presented with the VDI sponsorship award that same year. In the years that followed, he held various roles in materials testing and quality management and went on to become managing director of several subsidiaries. In 2010, he became a member of the defense corporate board, assuming responsibility for both the vehicle systems and the weapon and muni- tions divisions. Two years later, he became chair of the defense corporate board and a member of the executive board of Rheinmetall AG. In 2013, he was appointed chair of the executive board. Under his leadership, Rheinmetall is being trans- formed from a European systems supplier into a global market leader in defense technology. Recent developments, especially the increase in Europe’s defense budgets as a result of the Russian war of aggression against Ukraine, are accelerating this process. In 2023 and 2024, Rheinmetall invested almost €9 billion in new systems, strategic acquisitions and supply chain security. 2024 also saw the corporation invest over €500 million in research and development with the aim of strengthening its competitiveness and technological innovation capacity. Revenue growth of 25 to 30 percent was forecast for 2025 37 “The capacity for tech-nological leadership originates at the point where responsible research meets the courage to make prog-ress. This is precisely where Fraunhofer provides the momen-tum that will shape tomorrow’s innova-tion strength.”Armin Papperger

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report The senate’s report on the 2025 ﬁnancial year New senate members Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Jürgen Stebani | Dr. rer. nat. | Co-founder, co-owner, CEO of Polymaterials AG Photo: Polymaterials AG Jürgen Stebani studied chemistry at the University of Bayreuth, where he completed his doctorate in polymer chemistry in 1993. He began his professional career at Bayer AG, where he gained six years of management experience in Bayer’s plastics division, now Covestro. Toward the end of his time there, he was responsible for management accounting, strategic planning and the preparation of executive summaries. In 1999, Stebani founded Polymaterials together with two research scientists from the Techni- cal University of Munich. The company was established as a service provider specializing in applied polymer research and the development of innovative materials. Under his leadership, Polymaterials has developed into an international partner for SMEs and large corporations seek- ing to conduct research projects, having earned a reputation for combining scientiﬁc expertise with industrial implementation. The company’s innovation strength is evident from its technolog- ical milestones, among them the new compound screening technology X-Plorator®, which features integrated AI and won an innovation award at the Hannover Messe. Since its foundation, Polymaterials has successful- ly realized more than 1,000 research and devel- opment projects worldwide. The corporation has developed into an industrial research specialist and integrated service provider for polymer mate- rials with capabilities extending to the production of sample quantities. Its service portfolio currently focuses on the manufacture of specialty polymers, high-performance polymers and biopolymers on scales ranging from kilograms to several hundred tons per year. It also specializes in the creation of new plastics formulations, aided by predictive AI-based models that use high-throughput tech- nology to facilitate compounding—the process of mixing base polymers with additives and ﬁllers. As the CEO of Polymaterials AG, Jürgen Stebani is also a member of the executive board of Plastics Europe Deutschland, a member of the DIHK com- mittee for industry and research and a member of the executive board of Gesellschaft für Che- mische Technik und Biotechnologie e. V. (DECHE- MA). He also leads the innovation working group of the Bayerische Chemieverbände (Bavarian Chemical Associations). His goal is to strengthen interaction between innovators in the chemicals industry—scientiﬁc organizations, startups and industrial R&D specialists—and turn this into a future advantage for Germany as an industrial location. Stebani has been contributing his exper- tise at the interface between science and transfer to the senate of the Fraunhofer-Gesellschaft since January 1, 2026. 38 “As CEO of a mid-sized research company, I see how important it is to redesign innovation chains through cooperation between institu-tional and industrial innovators.” Jürgen Stebani

Review of Fraunhofer research 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information 39

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Pioneering achievements Precise simulation of high-energy lasers for inertial confinement fusion A future inertial conﬁnement fusion power plant will only be able to operate if the fuel capsules are continuously ignited—a process requiring approx- imately 15 laser pulses per second. This calls for efﬁcient diode-pumped solid-state lasers (DPSSLs) capable of ﬁring dozens of times per second. The Lawrence Livermore National Laboratory (LLNL) in the United States and the Fraunhofer Institute for Laser Technology ILT are combining their comple- mentary expertise to develop these lasers. Their shared goal is to develop high-energy lasers that are not only capable of ignition but can maintain maximum efﬁciency during round-the-clock oper- ation at the power plant. As a ﬁrst step toward designing a prototype, the partners are simulating the ampliﬁcation stages of high-energy lasers in the greatest possible detail. They are paying particular attention to laser ampliﬁers, which take a small laser pulse and boost it to the energy levels required for fusion. The photons in these laser pulses transmit many millions of joules of energy. The laser media consist of stacks of laser glass or crystal plates, which are up to 40 × 40 centimeters in area and just a few millimeters thick. During operation, they are cooled using transparent coolants. The ampliﬁer plates are exposed to enormous thermal and optical stress while in use. New generation of thulium fiber lasers Researchers at the Fraunhofer Institute for Applied Optics and Precision Engineering IOF have developed a system consisting of three com- bined high-performance thulium ﬁber lasers. The system superimposes beams with a wavelength of 2 micrometers. The researchers focused on a spectral range above 2,030 nanometers, thus targeting applications in hybrid security and civil protection as well as extreme long-distance com- munication, including satellite links. The system achieved an output power of 1.91 kilowatts (kW), almost twice as high as previously reported systems, which reached around 1.1 kW. This is a performance record. One of the key components is a specially developed diffraction grating with more than 95 percent efﬁciency and excellent thermal performance. The individual sources rely on a special connec- tion technology that involves the cold splicing of the ﬁbers. This also improves cooling. The newly developed high-performance thulium ﬁber lasers could potentially be used in a wide range of further applications, for instance in medical procedures and polymer processing. One important advantage of thulium ﬁber lasers is their improved eye safety. In the next step, the researchers aim to reach the 20-kW mark. Visual representation of a multislab ampliﬁer for high-energy lasers Image: Fraunhofer ILT Three parallel beams are combined by vertically offset reflection gratings to form a single laser beam with a record output power of 1.91 kW Photo: Fraunhofer IOF 40

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Measuring drug levels from exhaled air Pushing back the physical limits of solar cells A team of researchers from the Fraunhofer Insti- tute for Toxicology and Experimental Medicine ITEM has demonstrated for the ﬁrst time that par- ticles in exhaled air can be used to measure drug levels in human lungs. The ﬁndings represent a major breakthrough for the targeted develop- ment and optimization of treatments for lung diseases. In a clinical study, healthy volunteers received a dose of salbutamol either orally or by inhalation. Salbutamol is an active ingredient used to treat asthma and COPD. The research- ers then collected “exhaled breath particles” (PEx)—tiny droplets in exhaled air that form when previously collapsed small airways reopen during inhalation. The analysis showed that clear phar- macokinetic proﬁles could be derived from these particles following an inhalation. The study is the outcome of decades of develop- ment work, which included a German Research Foundation (DFG) project on the physical charac- terization of exhaled aerosols and the develop- ment of a device for collecting PEx. Jens Hohlfeld and Olaf Holz (Fraunhofer ITEM) received the Willi Stahlhofen Award from the International Society for Aerosols in Medicine (ISAM) for their ground- breaking study. An international research team has shown that the next step toward the industrial production of high-efﬁciency perovskite-silicon tandem solar cells is within reach. In order to produce these cells over large areas, the perovskite top cells must be deposited on the pyramid-textured surface of the silicon. They ﬁrst succeeded in using industrially viable processes to achieve high-quality surface passivation of the perovskite layer on the pyramid-textured silicon surface in October 2025. Researchers at King Abdullah Uni- versity of Science and Technology (KAUST), the University of Freiburg and the Fraunhofer Institute for Solar Energy Systems ISE achieved excellent passivation by depositing 1,3-diaminopropane dihydroiodide on the uneven perovskite surface. They also discovered that passivation affects the entire perovskite layer, which is not the case with silicon. This increases efﬁciency still further. The passivated tandem solar cells achieved efﬁciencies of up to 33.1 percent, with an open circuit volt- age of 2.01 volts. The technological and scientiﬁc innovations in the passivation of perovskite top cells were published in the journal Science. Exhaled particles are a fascinating method with great potential for noninvasive lung monitoring Photo: Fraunhofer ITEM The passivated tandem solar cells achieved efﬁciencies of up to 33.1 percent, with an open circuit voltage of 2.01 volts Photo: University of Freiburg / Silvia Wolf 41

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Europe’s largest vanadium redox flow battery enters research operation Semiconductor technology for broadband satellite communication Europe’s largest vanadium redox flow battery is located at the Fraunhofer Institute for Chemical Technology ICT. It is supplied with renewable energy from a ground-mounted photovolta- ic system and a wind turbine on the institute campus. In June 2025, Fraunhofer demonstrated for the ﬁrst time how renewable energy can be fed into the power grid in a controlled and predictable manner, regardless of current weather conditions. This marked the large-scale battery’s successful transition into research operation. The large-scale battery offers a tangible solution to a key problem associated with the energy transition: Surplus green electricity, which often remained unused when generation was high or even caused negative electricity prices, can now be temporarily stored and retrieved when needed to serve the grid. The modular vanadium redox flow battery was developed and built using only components and expertise sourced within Germany. It serves as a research and development platform for testing and further developing new storage technologies and components in cooperation with internation- al partners in science and industry. The battery functions not only as a demonstrator but also as a safety element that can help stabilize grids and prevent power outages. Future global communication networks will need to process high data rates, reach remote regions and function reliably in disaster situations. High-throughput satellites (HTS) in low Earth orbit and/or geostationary orbit offer a promis- ing solution. These satellites use active antennas for electronic beam steering and require highly efﬁcient power ampliﬁers with high linearity. Until now, however, the compact design required for these antennas has caused thermal prob- lems. Researchers at the Fraunhofer Institute for Applied Solid State Physics IAF have therefore developed high electron mobility transistors (HEMTs) based on gallium nitride (GaN), which have a gate length of 70 nanometers. Under simulated operating conditions, the GaN HEMT technology achieved record efﬁciency with a PAE of 54.4 percent at 30 gigahertz. This technology will facilitate the development of more compact and energy-efﬁcient communication systems for satellites besides making an important contri- bution to the establishment and expansion of seamless, resilient global communication net- works. The results were obtained as part of the Magellan project, funded by the ESA, and the GANYDEM170 project, funded by the German Federal Ministry for Economic Affairs and Energy (BMWE) and as an Important Project of Common European Interest (IPCEI). The underground electrolyte tanks for the redox flow battery at Fraunhofer ICT Photo: Fraunhofer ICT Mobility transistor for active antennas used by future satellite communication networks Photo: Fraunhofer IAF 42

Initiatives, structures, funding programs 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information 43

2025 annual report Fraunhofer-Gesellschaft Initiatives Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Fraunhofer moonshot innovations for the High-Tech Agenda Germany (HTAD) By adopting the HTAD, the German federal government has placed research and technology at the center of its efforts to strengthen competitiveness, value creation and sovereignty. The High-Tech Agenda of the German Federal Ministry of Research, Technology and Space (BMFTR) focuses on six key technologies and ﬁve strate- gic research ﬁelds. Fraunhofer was actively involved in shaping the HTAD’s thematic focus and is helping to develop the roadmaps for the six key technologies. Fraunhofer sees the HTAD as a call to turn today’s research into tomorrow’s value creation. In support of the key technologies, the Fraunhofer institutes have established nine selected moonshot initiatives in the areas of microelectronics, battery cell production, AI, robotics, quantum technology, biomedicine, nuclear fusion, advanced materials and production, and sustainable systems. The Fraunhofer moonshot initiatives translate the HTAD framework into actionable measures, such as living laboratories, pilot projects, public-private partnerships and transfer instruments for SMEs. They also identify areas where targeted investment is needed. With its focus on applied research, the Fraunhofer-Gesellschaft has ﬁrst-hand knowledge of industry needs. It is an indispensable link between academia and industry. As an innovation driver, it ensures that scientiﬁc ﬁndings are not shelved but rather strengthen Germany’s competitiveness. Advanced materials and production Battery cell production National alliance for technology transfer in biomedicine Nuclear fusion Competitive AI models for Germany’s economy Working and living in a circular system Microelectronics Quantum ecosystem Autonomous AI-driven robotic systems 44

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Module QNC for novel computing technologies Chiplet Application Hub for technological resilience Module QNC is an initiative of the German Federal Ministry of Research, Technology and Space (BMFTR) that provided targeted funding for investments in infrastructure and equipment until the end of 2025. These investments enable the project partners to develop and manufacture hardware for novel computing technol- ogies such as quantum and neuromorphic computing. Systems of this kind go beyond conventional digital computers and are vital for applications that involve machine learning, edge data process- ing and complex optimization tasks. They are used, for instance, for trafﬁc flows, production lines or the simulation of chemical processes for medications and battery cells. The funding program used the infrastructure provided by Research Fab Microelectronics Germany (FMD). Fraunhofer and Leibniz institutes have been cooperating under the umbrella of FMD-QNC since 2022, as have Forschungszentrum Jülich and AMO GmbH. The new equipment allows the partners to develop, characterize and test different technological approaches to realizing qubits and neuromorphic chip architectures across various research and pilot production lines. Some of these systems are designed for later use under special conditions, for instance at cryogenic temperatures. This bridges the gap between basic research and industrial manu- facturing, paving the way for future computing technologies to be scaled up. In addition to the technological investments, continuing education and advanced training programs for urgently needed specialists were established in cooperation with the Microtec Academy. These programs will be expanded further as a vital contribution to strengthening Germany as an innovation hub in the long term and safeguarding its competitiveness in a dynamic future ﬁeld. The new Chiplet Application Hub established by Research Fab Microelectronics Germany (FMD) was launched at Hannover Messe in 2025. The hub is designed to accelerate the transfer of chiplet technologies from research into industrial use. The scalability and modular structure of chiplet technologies make it possible to com- bine various semiconductor technologies with speciﬁc applications in mind and to tailor them to actual use cases. This facilitates the development of new system architectures characterized by greater energy efﬁciency, improved performance and enhanced reus- ability of individual high-cost design components. Major industry partners were involved in the Chiplet Application Hub right from the start, among them IBM and companies in the German auto- motive industry. These technologies open up new opportunities, for high-performance computing and AI in particular, as well as in sectors such as industrial electronics and medical technology. The Chiplet Application Hub complements the FMD’s work under the EU Chips Act at national level, thus strengthening the techno- logical resilience of Germany. The Chiplet Application Hub is an important building block for the implementation of the EU Chips Act in Germany and will be closely interlinked with the competence centers that are gradually being established in this context in all European countries. The decision made by the Belgian Interuniver- sity Microelectronics Centre (imec) to establish a presence at IPAI in Heilbronn emphasizes the close ties between the various stake- holders in the European chip ecosystem. It also shows how the EU Chips Act is bringing together research institutes, companies and competence centers on a joint mission to ensure Europe’s techno- logical competitiveness. Chiplet structure for implementing digital and analog functions—whole wafer before dicing Photo: Fraunhofer IIS 45

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information German Federal Chancellor Friedrich Merz, Minister-President of Baden-Württemberg Winfried Kretschmann and key representatives of the Dieter Schwarz Foundation, the Schwarz Group companies and IPAI performed the groundbreaking ceremony for the IPAI CAMPUS in Heilbronn. The ceremony was also attended by Federal Research Minister Dorothee Bär, Federal Minister for Digital Transformation Karsten Wild- berger and Baden-Württemberg’s Minister of Economic Affairs Nicole Hoffmeister-Kraut Photo: IPAI / Nico Kurth Heilbronn: a location for AI transformation in Europe The groundbreaking ceremony for the international campus of the Innovation Park Artiﬁcial Intelligence (IPAI) in Heilbronn took place in October 2025. The aim is to create a district that will signiﬁcant- ly advance research, specialist training, practical application and industrial transfer in the AI ﬁeld at the European level. The campus will complement the IPAI modules already established in Heilbronn: The innovation park has been operating on rented premises since 2022. IPAI entered its second phase of development in June 2024 when it opened and moved into IPAI SPACES, the ﬁrst building it can call its own. Furthermore, an international campus covering approximately 30 hectares is being constructed in the north of Heilbronn and will serve as a European AI hotspot designed to strengthen Europe’s digital sovereignty. The innovation park seeks to provide a European response to global developments in AI. It will create physical space for more than 5,000 employees and help shape the future of applied AI in a responsible and sustainable way, grounded in European sovereign- ty. More than 80 companies and institutions are already involved with the IPAI platform. They include DAX-listed corporations, innovative SMEs, universities and research institutions such as the Technical University of Munich’s Venture Labs, the Fraunhofer Insti- tute for Intelligent Analysis and Information Systems IAIS and the Fraunhofer Institute for Industrial Engineering IAO. IPAI is funded through a public-private partnership model. The largest share is provided by the Dieter Schwarz Foundation, which is contributing more than €100 million for development and basic structures. The state of Baden-Württemberg is also providing funding, while the city of Heilbronn is contributing real estate and site development services. A large proportion of the anticipated investment is expected to come from the long-term commitment of private-sector players at the location. 46

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Fraunhofer Heilbronn Research and Innovation Centers HNFIZ for AI and digital transformation Within the Fraunhofer Heilbronn Research and Innovation Cen- ters HNFIZ, eight Fraunhofer institutes are pooling their expertise in AI and digital transformation at nine centers. In mid-October 2025, the Research and Innovation Center for Transformation and Governance at Fraunhofer HNFIZ achieved maximum visibility with a study on the success factors involved in transformation: The Fraunhofer transformation index made it onto the front page of Handelsblatt. The Fraunhofer transformation index is a scientiﬁcal- ly validated instrument that makes the key factors for successful change visible and measurable. It shows companies where they stand in comparison with others—and which levers they can use to manage transformation successfully. This enables them to prioritize measures strategically and deploy resources with maximum efﬁ- ciency. The Research and Innovation Center for Applied Quantum AI reached its ﬁrst major milestone in the summer of 2025, when it organized an international symposium with the title “ML4QT— Machine Learning to Advance Quantum Technologies.” The symposium is intended to mark the start of a new series of annual events on key topics in quantum AI. JUPITER AI Factory delivers exascale power for industry and the research sector JUPITER, Europe’s ﬁrst supercomputer of the exascale era, was inaugurated in Jülich in March 2025. It exceeds the threshold of one quintillion (1018) computing operations per second, making it one of the world’s most powerful and sustainable AI supercom- puters. With more than 60 billion computing operations per watt, JUPITER has set a new efﬁciency record with the aid of specialized GPUs and optimized computing workloads. JUPITER is a symbol of European sovereignty and is intended to drive a new innova- tion ecosystem for AI applications that will enable faster scaling. Access to AI models in the cloud is accelerated by the inference module (JUPITER Advanced Research Vehicle for Inference Services): This makes it possible to optimize the models and to implement applications for tasks such as text generation, image analysis and complex calculations. In addition to the Jülich Supercomputing Centre, which is responsi- ble for coordination, the main partners are RWTH Aachen Univer- sity, the Fraunhofer Institute for Applied Information Technology FIT, the Fraunhofer Institute for Intelligent Analysis and Informa- tion Systems IAIS, the Lamarr Institute for Machine Learning and Artiﬁcial Intelligence and the Hessian Center for Artiﬁcial Intelli- gence. The JUPITER AI Factory (JAIF) also cooperates closely with the German AI service centers WestAI and hessian.AISC as well as the KI Bundesverband (German AI Association). It focuses on strategically important ﬁelds of application: healthcare, energy, climate change, education, media, the public sector and ﬁnance. Startups, SMEs, industry, research institutions and the public sector will all have access. The AI Factory will also support the training of next-generation language models from scratch. JAIF receives €55 million in funding from the European supercomputing initia- tive EuroHPC Joint Undertaking, the German Federal Ministry of Research, Technology and Space (BMFTR), North Rhine-Westphalian Ministry of Culture and Science and the Hessian Ministry of Science and Research, Arts and Culture. The JUPITER AI Factory is playing a key role in the implementation of the European Commission’s AI Innovation Package to support artiﬁcial intelligence startups and SMEs of January 2024. It is also contributing to the HTAD’s goal of establishing AI as a key technology and a powerful tool in import- ant ﬁelds of research and application. Graphic representation of the JUPITER supercomputer in Jülich Image: Forschungszentrum Jülich 47

The flight experiment was carried out using a research aircraft pro- vided by the German Aerospace Center (DLR) Photo: DLR 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Quantum network for highly secure communication networks The Quantum Network (QuNET) project, funded by the German Federal Ministry of Research, Technology and Space (BMFTR), has been under way since 2019 and specializes in the development and optimization of critical components and key technologies. Following the ﬁrst quantum-encrypted video conference between two federal authorities in 2021, it is now focusing on the devel- opment of quantum network technologies for multiple users. In October 2025, the successful completion of another key experi- ment marked a further step toward a future of secure quantum communication. The consortium used an aircraft to demonstrate satellite-based quantum communication with secure encryption over long distances. Satellite-based quantum communication is necessary because quantum states can only be transmitted over distances of a few hundred kilometers when using glass ﬁbers. Quantum-encrypted satellite-based communication could for instance be used to connect quantum memories or quantum com- puters in a future quantum network. During the experiment, a research aircraft provided by the German Aerospace Center (DLR) formed a mobile node in a quantum net- work and established a connection to a ground station (QuBUS). Researchers from the Fraunhofer Institute for Applied Optics and Precision Engineering IOF developed key components for the inte- grated photon pair source on board the aircraft as well as for the reception and measurement of the photons in the mobile QuBUS. The technologies used in the demonstrated key experiment are groundbreaking for the future of secure quantum communication. 48

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Fraunhofer Competence Network Quantum Computing Quantum technologies are one of the six key technologies pro- moted by the German federal government’s HTAD. The Fraunhofer Competence Network Quantum Computing, founded in 2020, has a crucial role to play in this context: 22 Fraunhofer institutes, each with its own research focus, have now come together under its auspices to collaborate on topics such as the development of a software stack. The institutes also cooperate with external partners such as research institutions, businesses and SMEs to facilitate the rapid transfer of research ﬁndings. All these stakeholders are work- ing together to research and develop new technological solutions for quantum computing. The continuous exchange of knowledge and practical experience speeds up the development process and helps deﬁne practical use cases. It is hoped, for example, that the use of quantum computers will accelerate and improve develop- ments when researching new drugs, optimizing logistic processes and conducting materials research. Advances in quantum comput- ing will therefore strengthen Germany’s competitiveness besides increasing its technological expertise. The Fraunhofer Competence Network Quantum Computing is consequently making a vital contribution to realizing the HTAD’s goal of positioning Germany as a leading innovation hub. Munich Quantum Valley: combining quantum computing with AI Munich Quantum Valley (MQV), an initiative of the Bavarian state government, aims to develop and operate competitive quantum computers and make them available for a wide range of applica- tions. MQV supports efﬁcient knowledge transfer from research to industry and is building a network with international reach. Close collaboration between universities, research institutions, industry and startups is central to this effort. Founding members in addition to Fraunhofer include the Bavarian Academy of Sciences and Hu- manities, the Technical University of Munich, Ludwig-Maximilians- Universität München, Friedrich-Alexander-Universität Erlangen- Nürnberg, the Max Planck Society and the German Aerospace Center (DLR). The participating Fraunhofer institutes have already used their specialized hardware and software expertise to make contributions in application-oriented areas. Examples include the production of qubits using an industry-compatible manufacturing process, assistance with component design and the development of precise, high-speed pulse generators for neutral atoms. Prac- tical solutions are developed in close collaboration with industry partners, combining quantum computing with AI and addressing complex application problems. Application lab for quantum computing and supercomputers At the Fraunhofer Institute for Applied Solid State Physics IAF, a unique quantum computing infrastructure is being developed with a focus on hardware platforms based on solid-state spins in diamond. These nitrogen-vacancy (NV) centers in diamond offer advantages over commercially available cloud quantum comput- ing solutions based on superconducting systems, since they are highly robust, can operate without elaborate cooling systems and facilitate the industrially scalable production of qubits based on individual NV centers. In order to make these advantages available to research and industry partners at an early stage of development, Fraunhofer IAF is setting up a quantum computing application lab that will provide low-barrier access to quantum computing based on NV systems. At its core is an NV-based quantum computer that, in initial benchmarking, outperforms commercially available NV sys- tems and is suitable for proof-of-concept calculations for industrial use cases. The NV-based quantum computer will also be connected to a high-performance computer. This will support hybrid quan- tum-HPC algorithms while creating structured access for external users and their speciﬁc research questions. Rebekka Eberle setting up the quantum computing application lab Photo: Fraunhofer IAF 49

Fusion technologies Fraunhofer has been actively involved in fusion technology for many years. This form of climate-neutral energy generation has seen remarkable scientiﬁc breakthroughs in the recent past. These include the world’s ﬁrst ignition of a burning plasma in laser-driven inertial conﬁnement fusion at Lawrence Livermore National Labo- ratory in the United States, as well as major advances in magnetic conﬁnement fusion. A global technology race has begun, resulting in billions being invested in fusion research. Spillover effects are already tangible today: Technologies such as high-power lasers and modern manufacturing systems are directly beneﬁting from devel- opments in fusion research. They not only strengthen the industry but also create jobs and open up opportunities for exporting German technology. 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Nuclear fusion offers enormous potential for a sustainable energy supply as well as for innovative and economic strength Icon: Fraunhofer In one of its moonshot innovation briefs, the Fraunhofer-Ge- sellschaft therefore calls for the creation of interconnected tech- nology hubs to bring world-class research and industry together with maximum effect, scale applications and secure a leading role in laser fusion. The Fraunhofer Institute for Laser Technology ILT is one of Germany’s ﬁrst movers in this ﬁeld and is already collab- orating closely with the Lawrence Livermore National Laboratory. With its expertise in materials and manufacturing engineering and laser technology, the Fraunhofer-Gesellschaft stands ready to actively contribute to the German federal government’s fusion energy action plan. If all stakeholders join forces, it will be possible to develop world-leading laser systems within the next three to ﬁve years through coordinated cutting-edge research and investment in infrastructure. The Fraunhofer-Gesellschaft is actively building bridges in this area, thereby establishing a comprehensive inno- vation ecosystem. The draft of the German federal government’s Fusion Action Plan (status as of October 2025) provides for €2 bil- lion in funding for fusion research by 2029. New funding initiatives are intended to span the full range from exploratory approaches in fusion research to basic fusion technologies. Constantin Häfner, Fraunhofer Executive Board Member for Research and Transfer, was appointed commissioner for fusion energy at the Fraunhofer-Gesellschaft in 2024. He is also a member of the fusion research advisory board of the German Federal Minis- try of Research, Technology and Space (BMFTR). Fraunhofer’s contributions to nuclear fusion SAXFUSION With SAXFUSION, Saxony is launching its ﬁrst statewide compe- tence network for future nuclear fusion technologies. The initiative is being coordinated by Helmholtz-Zentrum Dresden-Rossendorf (HZDR), a world leader in the ﬁeld of plasma experiments and material tests, while the Fraunhofer Institute for Material and Beam Technology IWS has assumed co-leadership. Based on its expertise in manufacturing technology, process engineering and materials development, Fraunhofer IWS will be responsible for transferring the fusion technology into industrial application. The competence network is starting with four core areas of expertise: laser and optical technologies, fuel capsule development including fusion reaction diagnostics, reactor material research, simulations and data analyses. SAXFUSION will connect with major European research infrastruc- ture. National and international industry partners and startups have pledged their support. The European Union and the Free State of Saxony are funding the initiative with approximately €2.4 million from the European Regional Development Fund (ERDF). SAXFUSION competence network Establishment of a biofabrication center for biomedicine and novel foods A biofabrication center is being established at the Fraunhofer Institute for Interfacial Engineering and Biotechnology IGB in Stuttgart. This interdisciplinary technology combines biotechnolo- gy, engineering and materials science to create biological systems with deﬁned functions and manufacture them at scale. Complex biological products and tissues are needed, for example, to replace diseased tissue, as alternatives to animal testing or for the biotech- nological production of cultivated meat. Researchers at Fraunhofer IGB are already working on reporter skin as an alternative to animal testing and on cell-containing bioinks for bioprinting. In this process, tissue structures are printed layer by layer. In-vitro tissue models are also needed at Fraunhofer IGB’s Virus-Based Therapies branch lab in Biberach in order to validate oncolytic viruses for cancer therapy. Oncolytic viruses offer a promising approach to the therapy of tumors that are refractory to other forms of treatment. 50

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information With funding from the state of Baden-Württemberg, the German federal government and the EU, manufacturing processes for bio- logical tissues and products can now be systematically researched, optimized and translated into scalable, marketable solutions at a pilot facility. Fraunhofer IGB, now under the leadership of Petra Kluger, sees the biofabrication center as a milestone in the devel- opment and application of innovative processes for customers in the healthcare, pharmaceutical and food industries. Center for the manufacture of complex biological products and tissues Integrated Security and Sustainability (I2SN) research network The Integrated Security and Sustainability (I2SN) research network was established in August 2025 by the Fraunhofer Institutes for Communication, Information Processing and Ergonomics FKIE and for Ceramic Technologies and Systems IKTS, together with the Leibniz Institute for Solid State and Materials Research (IFW Dres- den). Its purpose is to translate technology and knowledge in the areas of external, internal and civil security directly into practical civil and military applications. The multidisciplinary network is to be developed and ﬁrmly embedded by the end of 2027. IFW Dres- den is contributing its expertise in materials research, Fraunhofer IKTS its capabilities in energy technologies and Fraunhofer FKIE its expertise in cybersecurity and IT. The network will establish joint multidisciplinary labs in these ﬁelds of expertise in cooperation with associated partners from Saxony’s scientiﬁc community. It will initially focus on personal and vehicle protection, resilient energy systems and software-deﬁned defense. TT49: a new technology transfer fund New research infrastructure Fraunhofer institutes have two projects shortlisted for the national prioritization process for new research infrastructures implemented by the German Federal Ministry of Research, Technology and Space (BMFTR). The Center for Gene and Cell Therapy in Regeneration and Transplantation (CREATION), to which the Fraunhofer Insti- tute for Cell Therapy and Immunology IZI is contributing, aims to develop off-the-shelf therapies and use AI-supported automation to improve their production. The large-scale Einstein Telescope (ET) project, involving the Fraunhofer Institutes for Laser Technology ILT, for Applied Optics and Precision Engineering IOF and for Produc- tion Technology IPT, aims to develop a revolutionary instrument for detecting gravitational waves, for example to study the formation of black holes. During the prioritization process, the German Fed- eral Ministry of Research, Technology and Space (BMFTR) selects projects whose implementation would strengthen Germany’s inter- national competitiveness. An expert panel selected nine projects for the shortlist from among 32 concept papers. These will now be developed further in consultation with the German Science and Humanities Council. With the successful ﬁrst closing of the TT49 technology transfer fund in December 2025, the Fraunhofer-Gesellschaft, together with the European Investment Fund (EIF) and—for the ﬁrst time— private and further public investors, is taking the ﬁrst Fraunhofer technology transfer fund (FTTF) to the second generation. The purpose of the TT49 fund is to provide early-stage funding for inventions developed in the German and European research land- scape, thus facilitating the transfer of technology to value-creating innovations. The name TT49 is a combination of TT for technology trans- fer and 49 from Germany’s country code +49. The fund’s legal partners will each be providing up to one-third of the envisaged funding volume of €90 million themselves. As a pre-seed fund for ﬁnancing research teams, TT49 concentrates on funding spin-offs from non-university research institutions such as the Fraunhofer-Gesellschaft, the Helmholtz Association, the Leibniz Association and the Max Planck Society as well as their partner universities. These research institutions offer extensive incubator programs for researchers and prospective startup founders, among them Fraunhofer AHEAD. This gives investors access to attractive, impact-oriented spin-offs with strategic added value. Close collab- oration between incubators, founders and TT49 makes it possible to quickly translate innovative research results into marketable, sustainable solutions through startups. Except for drug research, all investments are technology-neutral. The fund is intended to improve ﬁnancial framework conditions, particularly for deep-tech spin-offs, which are often highly capital-intensive during the pre- seed phase. This will strengthen Germany and Europe as hubs for innovation. New fund for innovation transfer 51

2025 annual report Fraunhofer-Gesellschaft Structures Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information A partnership for the future of medicine (from left): Jaume Collboni (Mayor of Barcelo- na), Diana Morant (Spain’s Minister of Science, Innovation and Universities), Salvador Illa (President of the Government of Catalonia), Holger Hanselka and Núria Montserrat Pulido (Catalonia’s Minister of Research and Universities) Photo: ANDREU PUIG / Departa- ment de Recerca i Universitat Fraunhofer Spain In October 2025, representatives of the Fraunhofer-Gesellschaft, the Spanish government, the regional government of Catalonia and the city council of Barcelona signed a declaration of intent to expand the Fraunhofer Spain Research Foundation in Barcelona. It is modeled on the existing Fraunhofer Center for Applied Thera- gnostic (Fraunhofer CAT) in cooperation with the Fraunhofer Insti- tute for Biomedical Engineering IBMT. The signing grant authorities will provide the institutional funding for the center in Barcelona. Theranostics is a relatively new research ﬁeld that combines ther- apy and diagnostics to provide individualized patient treatment. The research teams will develop innovative technologies designed to support diagnostic, prognostic and therapy selection processes, thus paving the way for precision medicine. The new center will combine the strengths of the Institute of Bioengineering of Catal- onia (IBEC) in bioengineering, biosensors and biomimetic systems for biomedical applications with Fraunhofer IBMT’s expertise in stem cell process technology and cell-based microsystems. With the highest concentration of pharmaceutical and biotechnology companies in Europe, Catalonia is a key global player in the entire life sciences industry. The initiative by the grant authorities (the Spanish government, the regional government of Catalonia and the city council of Barcelona) and the Fraunhofer-Gesellschaft not only represents a signiﬁcant step toward enhancing Europe’s innovative strength but also offers the opportunity to strength- en the European research area and enhance the performance of Fraunhofer as a whole. 52

2025 annual report Fraunhofer-Gesellschaft Funding programs Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information The system allows users to set different flow rates in order to test which process parameters are needed to obtain the desired end product. Photo: Fraunhofer IPT / Guido Flüchter Flagship projects are designed to unlock Fraunhofer’s full synergy potential by bringing together the expertise of multiple institutes to develop solutions for the challenges facing society and industry. Example: automated production of mRNA APIs Technologies and bioprocesses for the fast, safe and affordable production of mRNA active pharmaceutical ingredients (APIs) were developed as part of the Fraunhofer flagship project RNAuto. mRNA-based vaccines, along with gene and cell therapy medicinal products, are innovative medicines that can be used to prevent or treat infectious diseases, hereditary conditions and cancer, also in cases that had previously been untreatable. However, there are no automated and digitalized production technologies that can manufacture these innovative medicinal products faster and more cost-effectively while complying with the high standards of good manufacturing practice (GMP). Fraunhofer addressed this by bringing together the expertise of various Fraunhofer research units in bioprocess development, smart sensors, digitalization and automation. The result was a set of device technologies combined in a screening unit that enables automated mRNA encapsulation and the integrated quality assurance of mRNA lipid nanoparti- cles (LNPs). Various bioreactor modules were developed for the manufacture of cell therapeutics such as those used in CAR-T and CAR-NK cell therapies. Looking ahead, this technology could enable the automated production of large batches of cell thera- peutics based on donor-derived immune cells. In addition to the technological systems, various processes were developed to enable the scaled manufacture of mRNA molecules and cell therapeutics. These were then applied to two pharmaceutical drug candidates. The results have the potential to make a major contribution to better and more cost-effective healthcare. 53

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information View inside the ampliﬁer of an Innoslab laser. The efﬁciently cooled, cuboid laser crystal of the Innoslab laser enables the ampliﬁcation of ultrashort laser pulses with multi-kilowatt laser power for applications such as laser materials processing and fusion research Photo: Fraunhofer ILT Clusters of excellence promote long-term, sustainable collabo- ration between multiple Fraunhofer institutes on strategic topics such as high-performance laser systems, key technologies for the cognitive internet, programmable materials, research into immune diseases and solutions for the circular economy and the energy transition. Example: Advanced Photon Sources CAPS In the laboratories of the Fraunhofer Cluster of Excellence Advanced Photon Sources CAPS, researchers are creating ultrafast lasers with average powers that are not yet generally available worldwide. These are then used for practical applications within Fraunhofer and in industry. The cluster is led by the Fraunhofer Institutes for Laser Technology ILT and for Applied Optics and Precision Engineering IOF. While researchers in Aachen are currently focusing on fast, ultra-precise material processing at wavelengths around 1 micrometer and on the generation of x-rays, researchers in Jena are using a 2-micrometer ﬁber laser for purposes such as the generation of EUV radiation for metrology applications (coher- ent diffraction imaging). The CAPS user facility offers early access to laser parameters not yet available internationally and expertise in the operation and use of these high-performance lasers. This opens up opportunities to test new approaches at an early stage, thereby generating intellectual property rights. Examples of practical appli- cations from various Fraunhofer institutes include EUV nanoanalysis for new battery cell systems (Fraunhofer Institute for Material and Beam Technology IWS), laser-structured surfaces with high thermal emissivity for rocket engines (Fraunhofer Institute for Telecommuni- cations, Heinrich-Hertz-Institut, HHI), 3D scaling of battery elec- trodes (Fraunhofer Institute for Ceramic Technologies and Systems IKTS), hollow light guides in glass substrates for high-frequency applications (Fraunhofer Institute for Silicon Technology ISIT) and blood sample analysis in medical diagnostics (Fraunhofer Institute for Cell Therapy and Immunology IZI). 54 Coherent diffraction imaging of a microchip using extreme ultravio- let (EUV) radiation. This makes it possible to identify the different materials in the chip structures Image: Fraunhofer IOF

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information PREPARE is a core element of Fraunhofer’s internal funding landscape. In 2025, the total volume amounted to €36.4 million. It comprised 47 ongoing projects, 12 of which were completed. The research results are intended to anticipate the future needs of customers and partners. The institutes are therefore expected to generate revenue equivalent to the funding amount within three years. This must be achieved through contract research for industry, licensing and spin-offs. Another objective of the program is to promote synergistic cooperation among institutes within Fraunhofer. Example: complex optics manufactured within 48 hours In the OPTICS48 project, a consortium was able to demonstrate that, in the future, glass optics could pass through all production stages from design to coating within just 48 hours. This shows that the Fraunhofer institutes are responding to growing demand for customized and increasingly complex optics. Examples of applica- tions include sensors in autonomous driving, medical technology and satellite metrology. To meet the 48-hour manufacturing target, three institutes combined their expertise to create a new process chain. Their work included the development of a new automated process for optic design and laser-based manufacturing. Expertise in glass forming, digital process monitoring and metrology was integrated into the process chain along with innovative coat- ing technologies. By the end of the project, the consortium had succeeded in manufacturing three optics for different applications in less than two days: a color-corrected doublet lens (achromat), a freeform optic for logo projection and a double-sided microlens array for laser beam homogenization. Rapid SME-oriented in-house research One key focus of Fraunhofer’s mission is to promote innovation among small and medium-sized enterprises in Europe. The Rapid SME-Oriented In-House Research funding line has been serving this customer group since 1976. 2025 saw the further development of 40 promising research approaches for SMEs. Example: sustainable packaging with barrier coating TransMET—”Transfer metalization for the production of barrier coatings on sensitive substrates” is a project by the Fraunhofer Institute for Process Engineering and Packaging IVV. Cardboard and paper packaging often provide insufﬁcient protection for sensitive foods or pharmaceutical products. The researchers accordingly used a lamination process to transfer an inorganic layer of alumi- num (oxide) and a layer of varnish to the ﬁber-based material. This signiﬁcantly improved the barrier properties of packaging materials such as paper while achieving the level of protection required for demanding products. By applying a very thin, transparent pro- tective layer to paper or cardboard, the researchers were able to preserve the recyclability of the biodegradable material. Demand for circular packaging solutions is being reinforced by a new EU packaging regulation, which entered into force in 2025 and is to be implemented by 2030. Four different demonstrator solutions illustrate the concept’s applicability. The novel coating processes can be implemented on existing systems without signiﬁcant invest- ment. Fraunhofer is working with companies to test the concept, for instance by manufacturing a lidding ﬁlm for packaging luxury food products and confectionery. Double-sided microlens array for laser beam homogenization Photo: Fraunhofer ILT Materials experts are developing inno- vative coating processes for sustainable paper and cardboard packaging. Photo: Fraunhofer IVV 55

A researcher at the High-Performance Center Smart Production & Materials conﬁgures the forming process for producing ﬁber composites Photo: ILK-TU Dresden / Andreas Scheunert 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information High-performance centers were initiated by Fraunhofer as funding platforms to develop region-speciﬁc research areas in col- laboration with local companies while maintaining a strong focus on practical application. The centers bring together Fraunhofer institutes, universities, non-university research institutions, civil society and companies with the aim of transferring R&D projects to practical applications. All high-performance centers are evaluated annually according to an omnibus principle, meaning that their number remains limited. Example: Smart Production & Materials The impact of Fraunhofer’s diverse transfer activities is demonstrat- ed by the High-Performance Center Smart Production & Materials. Established in 2017, it has gained a reputation as a key intermedi- ary between companies’ needs and Fraunhofer expertise in Chem- nitz and Dresden. Close collaboration between the Fraunhofer Institutes for Electronic Nano Systems ENAS, for Ceramic Technol- ogies and Systems IKTS, for Material and Beam Technology IWS and for Machine Tools and Forming Technology IWU is central to its work. An advisory board and a central ofﬁce ensure close coop- eration with the institutes and provide long-term support for the development of the High-Performance Center Smart Production & Materials. Awareness of technology transfer and related expertise are strengthened by information services, peer groups and individ- ual consulting. Transfer formats such as the Patentbörse (patent exchange), cUPdates and InnoSpeedDatings were developed and established to increase visibility and promote the commercialization of available expertise. The center’s success is reflected for instance by the €315 million in industrial revenue generated in 2025 and the twelve spin-offs formed over the past ﬁve years, among them VibroCut, Botfellows and AMAREA Technology. 56

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information The Fraunhofer-DFG (German Research Foundation) collabo- ration program enables DFG-funded research at German univer- sities to be further developed using the technological expertise of Fraunhofer institutes and industrial companies (particularly SMEs). This allows companies to beneﬁt from early access to innovations from science and applied research. International Cooperation and Networking (ICON) enables Fraunhofer institutes to obtain funding for project-based collabora- tion with outstanding research organizations abroad. The projects pursue ambitious research goals and are intended to strengthen Fraunhofer’s knowledge base and service portfolio. Efﬁcient characterization of wind conditions using experi- mental and numerical methods Photo: Fraunhofer IWES Example: robust, high-performance ultrafast lasers Example: assessing wind turbulence The Fraunhofer Institute for Telecommunications, Heinrich-Hertz- Institut, HHI, Deutsches Elektronen-Synchrotron (DESY) and TOPTICA SE achieved signiﬁcantly higher performance and greater reliability in femtosecond laser systems by using improved semiconductor saturable absorber mirrors (SESAMs for short). These systems are central to applications in materials processing, biophotonics, medical technology and quantum sensors. In the SesamUnstrained project, the partners established an end-to-end development process moving from theoretical, nonlinear modeling of complex laser dynamics through the manufacture and optical characterization of novel components to the implementation and testing of a demonstrator. For this, they developed the ﬁrst SESAMs using strain-free absorber materials with high long-term stability. The SESAMs were precisely matched to the laser archi- tecture through iterative simulation, epitaxial growth and optical characterization. The demonstrator was validated at TOPTICA SE and reliably self-started pulsed laser operation with high long-term stability. The results of this collaboration are laying the foundation for an industrial production line in Germany and strengthening the competitiveness of the domestic laser industry. In their project NEMO (New Methods for Turbulence Measurements and Models in Offshore Wind), the Fraunhofer Institute for Wind Energy Systems IWES and the French research institution France Energies Marines are addressing one of the main challenges in developing wind farms at sea: assessing wind turbulence. This is a crucial factor in the optimal planning and design of offshore wind farms. The partners are developing and combining new experimen- tal and numerical methods to characterize wind conditions with maximum accuracy and efﬁciency, especially at turbulent scales. The core of the project is a comprehensive, high-intensity measure- ment campaign comparing and calibrating both experimental and numerical methods. The new methods are to be incorporated into standardization processes in order to facilitate their rapid transfer to the offshore wind industry. The results are aimed at developers and operators of offshore wind farms and at wind turbine manu- facturers. Commercial enterprises can then improve the lifetime, reliability and performance of offshore wind farms by optimizing their designs. Ultimately, the project results can make wind farms more proﬁtable while cutting investment costs. 57

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Projects and results As an applied research organization, Fraunhofer fulﬁlls its respon- sibility to society to develop solutions for the challenges of our time. As part of this, Fraunhofer works with partners from industry and science to translate research ﬁndings into sustain- able products and services. This work is guided by the UN’s 17 Sustainable Development Goals (SDGs). These ambitious goals address all stakeholders in politics, industry, civil society and science. Fraunhofer has adopted the SDGs as an important guiding framework. Accordingly, the model research projects are allocated to selected SDGs. Working with and for industry to develop marketable, sustainable innovations is a core task for the Fraunhofer-Gesellschaft. As such, SDG 9 (Industry, innovation and infrastructure) is of particular importance to Fraunhofer. However, its research also addresses the remaining SDGs. The Fraunhofer group structure guided the choice of projects and ﬁndings presented. One publicly funded project and one project (co-)funded by industrial partners is presented from each group. This also applies to the Segment for Defense and Security VVS. 58

2025 annual report Fraunhofer-Gesellschaft Energy Technologies and Climate Protection Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Industrial collaboration Heat pump with natural refrigerant propane A new generation of heat pumps that use the environmentally friendly refrigerant R290 (propane) has been available from special- ty retailers since mid-2025. Two different models of a space-saving ground-source heat pump for installation in single-family and multifamily homes are available from the ait-group. If refrigerant escapes, no more than 150 grams of the natural refrigerant R290 is released. This allows the heat pump to operate safely indoors without an additional ventilation system. The source tempera- ture range extends from −13°C to +30°C, enabling connection to a wide variety of renewable heat sources, including downhole heat exchangers, groundwater, wastewater, ice storage systems and photovoltaic-thermal (PVT) collectors. The innovative devices achieve energy efﬁciency class A+++. An optional cooling function can also be integrated. Research scientists at the Fraunhofer Institute for Solar Energy Sys- tems ISE have been working on heat pumps with reduced refriger- ant charge since 2020. As part of the funded project “LC150 – low charge 150g,” they collaborated with heat pump manufacturers to identify cost-cutting measures and sustainable refrigerants, then developed a propane refrigerant circuit with a reduced refriger- ant charge. In 2020, the consortium set a new efﬁciency record, achieving a heat output of 12.8 kilowatts with just 124 grams of propane. More than three years of development yielded heat pump concepts and working models based on a signiﬁcantly reduced refrigerant charge. The ait-group became the ﬁrst industry partner to successfully translate the project’s ﬁndings on ultra-low refriger- ant charges into production-ready products. Funded initiative Environmentally friendly exhibition center in Nuremberg By 2028, a major consortium of industry and research organiza- tions aims to show in a living energy-transition laboratory, that exhibition operations can be reliably converted to a sustainable, carbon-neutral energy supply. Using the Nuremberg exhibition center as an example, the overall concept is intended to demon- strate that such a transition is technically feasible, economically viable and worthwhile. It is also hoped that others will be encour- aged to replicate this approach. The REMBup project has been receiving funding from the German Federal Ministry for Economic Affairs and Energy (BMWE) since the beginning of 2024 in accor- dance with a resolution passed by the Bundestag. The project, which is being implemented in close collaboration between industry and research, involves the construction of a sustainable energy system that ensures security of supply and integrates established technologies such as photovoltaics and battery storage. It also includes hydrogen technologies—including liquid hydrogen carriers—and combined heat and power systems fueled by wood gas, which could also be used to process exhibition waste on site. REMBup is a pioneering project that links proven and innovative energy technologies with digital energy management. The core element is a digital twin of the hybrid power plant, which will be used to simulate the energy system. Load forecasts, AI and weather forecasts will help optimize the system in terms of energy and economic efﬁciency. At the end of the project, the ﬁndings and results will be tested under real exhibition operations. The proj- ect will also involve the development of new business models for operating sustainable hybrid power plants. The participants include the Fraunhofer Institutes for Integrated Circuits IIS and for Inte- grated Systems and Device Technology IISB (both headquartered in Erlangen) together with the Fraunhofer Research Institution for Energy Infrastructures and Geotechnologies IEG. These brine-to-water heat pumps with propane do not require an additional ventilation concept Photo: ait-deutschland The ﬁrst photovoltaic systems have been installed on the roofs of the exhibition halls Photo: NürnbergMesse GmbH 59

2025 annual report Fraunhofer-Gesellschaft Health Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Industrial collaboration Development of a nasal spray to treat asthma Funded initiative Standards to improve health data usability Nasal sprays are an attractive method of drug delivery. They are easy for patients to use, and the active ingredients can enter the bloodstream directly without passing through the stomach or liver, as they do when taken orally. The nasal mucosa can also trigger both local and systemic immune responses. The Geneva-based biotech company OM Pharma and the Fraunhofer Institute for Tox- icology and Experimental Medicine ITEM in Hannover are develop- ing an asthma nasal spray based on OM-85, an approved drug that has previously only been administered orally. OM-85 consists of a lysate, a puriﬁed cell material derived from 21 heat-inactivated bac- teria found in the respiratory tract. It acts as an immunomodulator, activating speciﬁc immune cells in the mucosa in order to strength- en the immune mechanisms that defend the body from pathogens. Researchers at Fraunhofer ITEM had previously conducted multiple preclinical studies to investigate the active ingredient’s efﬁcacy and distribution in the lungs. The drug is already licensed for oral administration to prevent recurrent respiratory infections. In mid- 2024, OM Pharma and Fraunhofer ITEM launched a phase I clini- cal trial to test intranasal use for the ﬁrst time. The trial evaluated the safety and tolerability of intranasal OM-85 in healthy volun- teers and patients with mild asthma. The aim of the clinical trial is to gain a deeper understanding of intranasal OM-85 and examine its potential impact on asthma management when administered as a nasal spray. This innovative delivery in a nasal spray could potentially increase the therapeutic beneﬁts of OM-85 for asthma patients. The FHIR Starter project was launched in 2025 to relieve pressure on the healthcare system through AI and data interoperability. Funded as part of the Generative AI for SMEs innovation com- petition organized by the German Federal Ministry for Economic Affairs and Energy (BMWE), the project brings together the Fraunhofer Institute for Experimental Software Engineering IESE, the Berlin Institute of Health at the Charité and the AI company Insiders Technologies. FHIR (Fast Healthcare Interoperability Resources) is a standard for structuring and exchanging health data between different IT systems in healthcare. To support this, the project partners are developing a software service that uses large language models (LLMs) and natural language processing (NLP) to analyze full-text documents and automatically convert them into standardized data formats. Standards support data exchange among the many healthcare stakeholders and are essential for effective data use. Beneﬁts include reducing workloads for healthcare professionals and improving patient care. The main challenges are ensuring data reliability—especially by preventing hallucinations—and protect- ing conﬁdential information. To address this, Fraunhofer IESE has developed an uncertainty wrapper, a tool that quantiﬁes, manages and reduces uncertainties in AI models. To ensure that medical data is processed responsibly in compliance with the GDPR, the software service will be based on open-source LLMs that run on the user’s own servers. In the future, it may also be possible to store archived data such as laboratory results or medication lists automatically in electronic patient records. 60 The trial investigated the safety and tolerability of intranasal OM-85 in healthy volunteers and patients with mild asthma Photo: Getty Images

2025 annual report Fraunhofer-Gesellschaft ICT Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Industrial collaboration How production robots work safely with AI AI-supported automated robotics could make production process- es signiﬁcantly more efﬁcient by enabling manufacturing robots, most of which have been statically programmed until now, to react flexibly to deviations during the manufacturing process. This could minimize quality fluctuations and downtime. Safe collaboration between humans and machines is already a major challenge, but integrating AI functions into robotics makes the safety issue even more critical. Hitachi Ltd. commissioned the Fraunhofer Institute for Cognitive Systems IKS to develop a solution, which used established ISO 31000 risk management practices to identify and assess AI risks before deﬁning risk mitigation mea- sures to address the risk factors. To integrate the measures into the AI system, the researchers used their AI Safety Envelope (AI-E) architecture. This allowed them to implement the risk mitigation measures as self-protection, self-monitoring or self-checking techniques. Together, these three techniques form the AI Safety Envelope around the unreliable AI function, turning it into a reliable subsystem. The AI-E architecture is an implementation of the archi- tectural risk mitigation for AI functions outlined in ISO/IEC TR 5469. The architecture developed by Fraunhofer IKS increases the reliabil- ity and safety of AI-controlled systems—a crucial requirement for their use in safety-critical environments. Hitachi Ltd. will use these ﬁndings as a basis for further innovations across its applications. Funded initiative Monitoring bridges with acoustics and AI Bridge closures and structural failures across Germany underscore a backlog in infrastructure investment. Until now, industry has lacked a reliable digital solution to facilitate predictive maintenance. Acoustic monitoring can provide valuable information, especial- ly on bridges carrying vehicle trafﬁc. In the summer of 2025, the Fraunhofer Institute for Digital Media Technology IDMT and the engineering ﬁrm Marx Krontal Partner launched the project AIrBSound. The partners are developing a monitoring system that is based on airborne sound and AI-based methods. This uses airborne sound sensors and AI-supported analyses to detect structural changes in bridge components, especially bridge expansion joints. These joints are subjected to extreme stress on every bridge and are particular- ly susceptible to wear. Acoustic monitoring with airborne sound sensors does more than flag damage such as wear, cracking or loosening. It also provides insights into trafﬁc volume and vehicle types. These metrics are important for assessing the actual struc- tural loads and generating a picture of the bridge’s health. One key part of the project is preprocessing the recorded audio data. To produce reliable results, the data must ﬁrst be isolated from background noise and prepared for analysis using neural networks. Initial AIrBSound tests are being carried out on the Wesenitz and Sachsen bridges in Pirna. The project is funded by the German Federal Highway and Transport Research Institute (BASt) through the summer of 2026. Administrative support is being provided by the interdisciplinary network operated by Allianz für Industrie und Forschung (AiF) GmbH. Reliable person detection for safe cooperation between hu- mans and robots Photo: Fraunhofer IKS The research project AIrBSound is using acoustics to investigate bridge expansion joints Photo: Fraunhofer IDMT 61

2025 annual report Fraunhofer-Gesellschaft Innovation Research Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Several EU research projects studying forest ﬁres published an integrated wildﬁre risk management strategy in 2025 Photo: Getty Images The Simmering power plant generates electricity and district heating for Vienna Photo: Wien Energie GmbH Industrial collaboration Future electricity market design in Austria Wien Energie and VERBUND, two of Austria’s biggest energy companies, commissioned the Fraunhofer Institute for Systems and Innovation Research ISI to investigate what a secure, sustainable Austrian electricity market could look like in the future. Austria’s current electricity market generally allows capacity providers to generate sufﬁcient revenue to cover both ﬁxed and variable costs. Appropriate price signals can also create incentives for new invest- ment. However, government interventions during the energy crisis have weakened conﬁdence in the market’s ability to generate such incentives. The study was based on an analysis of investment security in Austria’s energy industry alongside developments in European elec- tricity markets. The research team also evaluated various restruc- turing options for the Austrian energy market, including models in which the existing energy-only market would be supplemented by a capacity market, and estimated the associated cost effects. The result was a proposal for a combined capacity market, combining the maintenance of existing plants, optimal load management integration and centrally organized tendering processes for new plants. The concept is designed to guarantee long-term security, performance and flexibility. Deﬁning and reﬁning the concept at an early stage would make it possible to accelerate the transition to a technology-neutral capacity market if needed. The Austrian Energy Agency, Vienna University of Economics and Business and the law ﬁrm Becker Büttner Held, which specializes in customers in the energy sector, were each brought into the project to address speciﬁc market concerns and assess the European and national legal framework. Funded initiative EU strategy for fighting forest fires According to the European Forest Fire Information System (EFFIS), more than one million hectares of forest were destroyed in the EU in 2025. Spain was most severely affected, followed by Portugal. Germany also experienced a record wildﬁre season, with 5,000 hectares destroyed—its largest loss in twenty years. The summer of 2025 was Europe’s worst season for forest ﬁres since EFFIS began recording data in 2000. In 2025, several EU research projects dedicated to forest ﬁres published an integrated wildﬁre risk management strategy (IWRM). Drawing on examples of good practice, the strategy aims to harmonize Europe’s previously fragmented approach to wildﬁre control and risk reduction and make it easier to share knowledge across the extensive capacities already in place. Backed by more than €70 million in EU funding, the strategy proposes concrete measures, including the design of ﬁre-tolerant landscape mosaics, incentives for ﬁre-smart bioeconomies and public-private partner- ships. Cooperative landscape planning, education on wildﬁre risks and new ﬁnancing mechanisms are needed to support adaptation. The strategy rests on four pillars: risk assessment and evaluation, risk management and adaptive planning, interest group involve- ment and communication, and integrative governance. The recommendations were compiled by contributors working on the EU Green Deal research projects Firelogue, FIRE-RES, TREEADS and SILVANUS. The Firelogue coordination project was led by the Fraunhofer Institute for Communication, Information Processing and Ergonomics FKIE (known until 2025 as Fraunhofer INT) and involved ﬁfteen partner organizations from nine countries. 62

2025 annual report Fraunhofer-Gesellschaft Light & Surfaces Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Several hundred stamped parts per minute are captured in free fall by 16 cameras. This facilitates the detection of geometric defects within a range of 100 micrometers Photo: Fraunhofer IPM The nanostructured grating for ESA’s Copernicus Senti- nel-4 instrument is mounted with micrometer precision Photo: Fraunhofer IOF Industrial collaboration Optical inspection verifies the precision of stamped parts Funded initiative Measuring air quality from space Stamped parts such as connectors, circuit boards, sleeves, clips and pins are used in many high-tech products. Especially in the automotive, electrical, medical technology and telecommunications industries, these parts are manufactured at rates of several hun- dred units per minute. Until now, quality assurance methods have been unable to keep pace with the high throughput of stamping processes. Inspections have typically been performed by random sampling, either visually or using CT scans. Researchers from the Fraunhofer Institute for Physical Measure- ment Techniques IPM have partnered with the mid-sized stamped parts manufacturer Quittenbaum GmbH to implement a new optical testing system. For the ﬁrst time, a free-fall inspection system makes it possible to check the geometric dimensional accuracy of 3D precision parts within a range of 100 microme- ters at production speeds measured in seconds. The system was tested using copper sheet connectors at a production rate of 330 parts per minute. A component guide developed by Quittenbaum feeds parts measuring up to 40 millimeters from the stamping machine into a test sphere one by one. At the moment of free fall, 16 high-resolution cameras then capture each part from different angles. Indirect LED flash illumination ensures that the images are free of shadows or reflections. Comparisons between the measure- ment data and the reference CAD model trigger the immediate rejection of defective parts. To achieve the high throughput for this computationally intensive analysis, the system uses fast inspection algorithms, parallelized camera control and multiple evaluation computers. Next, the partners plan to develop an efﬁcient method for inspecting the surfaces of stamped parts. In 2025, the European Space Agency (ESA) launched the Sentinel-4 and Sentinel-5 missions in continuation of the Copernicus climate research program. Several optical components developed by the Fraunhofer Institute for Applied Optics and Precision Engineering IOF were installed on board the satellites and integrated into spe- cialized spectrometers. Sentinel-4 is the EU’s contribution to the global constellation of geostationary air quality sensors. The satellite supplements air quality data from a Korean sensor for Asia and a NASA sensor for North America. The ﬁrst European spectrometer has been improving data accuracy for weather forecasting and air pollution monitoring over Europe and Africa since mid-2025. Fraunhofer IOF designed and manufactured a high-precision diffraction grating for this purpose. Since August 2025, Sentinel-5’s ultraviolet visible near-infrared shortwave spectrometer has made it possible to mon- itor air quality, trace gases and aerosols worldwide. With a spatial resolution of up to 7 × 7 square kilometers, climate researchers can identify and analyze emission sources much more precisely than before. Fraunhofer IOF developed several optical components for the near-infrared channel (685–710 nm): a highly efﬁcient trans- mission grating with a diffraction efﬁciency of more than 95 per- cent and polarization sensitivity of less than 2 percent, space-qual- iﬁed mounts and an adjustable lens group. Fraunhofer IOF is also contributing components to the ESA’s FORUM and CO2M missions. Starting in 2027, these missions are expected to provide the ﬁrst comprehensive measurements of the thermal radiation emitted by Earth and of the atmosphere’s CO2 content. 63

2025 annual report Fraunhofer-Gesellschaft Materials and Components Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Industrial collaboration Efficient production of sandwich components Researchers from the Fraunhofer Institute for Microstructure of Materials and Systems IMWS, working in collaboration with indus- try partners such as Daimler Truck AG, have developed a manufac- turing process for plastic sandwich components that can be used for mass production. They used thermoplastic sandwich molding technology to produce a storage compartment flap for a truck cab. The lightweight sandwich design signiﬁcantly improves sustainabili- ty by reducing weight and material requirements while allowing for the use of recyclable materials. The sandwich structure combines highly rigid, exceptionally strong face sheets with a lightweight core. This makes highly efﬁcient use of materials while achieving very high bending and buckling stiffness relative to weight. The semi-ﬁnished products, made from a thermoplastic honeycomb core and face layers of ﬁber-reinforced thermoplastic unidirectional tape laminates supplied by partner ThermHex, are formed by thermoforming and then ﬁnished by injection molding to integrate the required functional features. The design is also suitable for high-load structural components in vehi- cle and aerospace applications. Compared with monolithic struc- tures, it offers weight-saving potential of up to 70 percent, while the load-bearing capacity of the components is at least equivalent to that of metal parts. The development won the JEC Composites Innovation Award for 2025 in the Automotive & Road Transporta- tion—Process category. The award recognized the entire consor- tium involved in the HyWaSand project: Besides Fraunhofer IMWS and Daimler Truck AG, the other members were ElringKlinger AG, ENGEL Austria GmbH, ThermHex Waben GmbH and Edevis GmbH. Funded initiative Compostable disposable tableware made from sugar beet Partners in science and industry are developing compostable disposable tableware designed to protect the environment and the oceans. The material is based on residues from sugar beet produc- tion in Germany, which are processed into compounds and poly- mer ﬁlms by a consortium consisting of the Fraunhofer Institute for Wood Research, Wilhelm-Klauditz-Institut, WKI, the Institute for Biotechnology at RWTH Aachen University and Pfeifer & Langen GmbH & Co. KG. The material is produced by mixing ground sugar beet pulp with natural polymers, such as cornstarch or pectin from sugar beets, then adding water and glycerin. The resulting compounds are processed into pellets, pressed into ﬁlm, coated and formed into plates. Initial tests have shown that the materials are more stable than paper plates and biodegrade faster, breaking down within twelve weeks. An ecotoxicological assessment con- ﬁrmed that the compounds are safe for contact with food. German sugar producers generate millions of metric tons of sugar beet pulp during harvesting. Processing the pulp into compounds locally can shorten transport routes, reduce CO2 emissions and strengthen regional markets. Plates have already been produced as demonstration prototypes. Materials for disposable cutlery, which is to be manufactured by injection molding, are being developed, as are bio-based coatings for contact with fatty and oily foods. In the next step, the project partners aim to transfer production to existing industrial facilities. The project has laid the foundation for a sustainable, biodegradable solution for disposable tableware like that widely used at trade fairs and festivals. s e g a m I y t t e G : o t o h P 64 Demonstrator of a storage compartment flap for use in a truck cab Photo: Fraunhofer IMWS This plate was produced during pilot trials using a ﬁlm made of sugar beet pulp Photo: Fraunhofer WKI

2025 annual report Fraunhofer-Gesellschaft Microelectronics Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Industrial collaboration Complex mask structures in just a few hours Funded initiative High-tech early warning system for biodiversity The Fraunhofer Institute for Silicon Technology ISIT is working with IMS Nanofabrication, a global leader in electron multi-beam mask writers headquartered in Austria, to develop the TROM chip, a revolutionary technology for producing high-resolution EUV photomasks for semiconductor manufacturing. These photomasks are needed to create highly precise structures in the nanometer range using increasingly advanced processes. The TROM chip takes miniaturization to a new level. By combining innovative MEMS and CMOS technologies, the chip can control hundreds of thousands of electron beams simultaneously, without compromising precision and efﬁciency. This makes it possible to produce complex mask structures within just a few hours, an unprecedented improvement over conventional single-beam mask writers. This achievement earned the project a Fraunhofer Prize in 2021. The MEMS process jointly developed by the partners comprises more than 200 individual steps and combines multiple state-of-the- art manufacturing technologies, including complex electroplating processes, deep reactive ion etching (DRIE) and silicon etching with potassium hydroxide. These high-precision processes ensure defect-free, electrostatically optimized structures on the chips. At the beginning of 2025, Fraunhofer ISIT took ﬁrst place in the orga- nization’s internal Best Customer Acquisition of the Month award with a contract from IMS Nanofabrication worth several million euros. The institute in Itzehoe has since received a follow-up order: The next technological leap will take semiconductor manufacturing beyond the 3-nanometer node using the TROM3 chip. The Leibniz Institute for Zoo and Wildlife Research (Leibniz-IZW) and the Fraunhofer Institute for Integrated Circuits IIS have joined forces in the GAIA initiative, which aims to protect biodiversity. To that end, the partners are harnessing the natural intelligence of white-backed vultures (Gyps africanus), which detect dead animals in the savanna. By using the vultures to monitor entire swaths of land, the research consortium is creating a high-tech early warning system that can detect ecological changes and critical environmen- tal events rapidly and accurately. What does the vulture know (and what can it do)? GAIA combines natural intelligence and AI in the service of wildlife vation Photo: Jon A. Juarez research and species conser- The researchers at Fraunhofer IIS developed camera tags with near-sensor AI, which are ideally suited for use in animal transmit- ters due to their extremely low power consumption and small size and weight. This part of the project was supported by Vectronic Aerospace GmbH. The satellite-based communication system, which is essential for transmitting data from remote areas, was developed in cooperation with Rapid Cubes GmbH. The efﬁcient AI algorithms were developed by Fraunhofer IIS in cooperation with Leibniz-IZW. In this approach, the team consistently leverages edge computing: The collected raw data is preprocessed directly in the processor unit attached to the vulture, which means that only the extracted information has to be transmitted via satellite. TROM chip: unrivaled process for manufacturing microchips with structures smaller than 10 nanometers Photo: Fraunhofer / photocompany Itzehoe What does the vulture know (and what can it do)? GAIA combines natural intelligence and AI in the ser- vice of wildlife research and species conservation Photo: Jon A. Juarez Building on this, the researchers are taking the technology one step further: When the vultures gather around a dead animal, their transmitters connect with one another and form a temporary ad hoc network. This distributes the computing load efﬁciently, improves data analysis performance and achieves even greater reliability. 65

2025 annual report Fraunhofer-Gesellschaft Production Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Industrial collaboration Assistance system for safe crane control Funded initiative Centralized sustainability data from a single IT platform Process cranes are used in the steel and process industries to trans- port heavy and sometimes dangerous loads, including hazardous materials. In the steel industry, for instance, cranes move casting ladles that weigh 350 tons and are ﬁlled with molten metal. For the crane operator, visibility is often limited, especially when picking up a load. The currently available wired sensor systems designed to reduce the risk of dropped loads are only of limited use in extreme heat or when exposed to flames. The Fraunhofer Institute for Factory Operation and Automation IFF, in collaboration with Kranbau Köthen GmbH, has now brought the Pro-Kran-Assist assistance system to production-ready status. The system is based on powerful 3D LiDAR sensors that generate more than one million measurement points per second. This allows the movements of the crane hook and the load sway to be analyzed in real time while picking up the load. The system status determined from this data is represented in a digital twin and transmitted to the crane operator. The clear visualization of the current positions of the crane hook and the casting ladle’s trunnion, together with visual alerts of critical situations, enables loads to be picked up and set down safely—even in complex conditions with poor visibility. The Pro-Kran-Assist system operates autonomously and does not intervene in crane control. The system has proven itself under the harsh conditions of steel mills and is already in use at several steel plants operated by different companies. In all of these settings, it has signiﬁcantly reduced hazards and improved employee working conditions. A service-oriented IT platform enables production companies in particular to collect and process their sustainability data centrally and integrate it into their reporting. In the EcoHub project, funded by the German Federal Ministry of Research, Technology and Space (BMFTR), companies in the paper, chemical, recycling, metalwork- ing, agriculture and food industries teamed up with research partners to develop an IT platform that records and processes sustainability data centrally. This includes data on energy consump- tion, greenhouse gas emissions and supply chains. The Fraunhofer Institute for Manufacturing Engineering and Automation IPA and the Wuppertal Institute for Climate, Environment and Energy were involved as project partners. Collecting the sustainability information that measures a compa- ny’s environmental, social and economic impact is an extremely time-consuming process. This is because the data required—such as how much electricity or gas certain machines use or the volume of exhaust air that needs to be ﬁltered—has to be extracted from the pool of machine data. The IT platform developed during the project collects the data while accounting for aspects such as data security and access permissions. It then presents the information clearly together with AI-based forecasts. This can help identify material waste, for example, or reduce energy consumption and pollutant emissions. The platform can also support lifecycle anal- yses of lifespan and material flows as well as reporting and other services. A prototype of the platform is hosted and licensed by proj- ect partner ConAct GmbH. A demo version is planned for release. A point cloud visualizes the crane working area in real time. This is generated from data captured by 3D LiDAR sensors Image: Fraunhofer IFF 66

2025 annual report Fraunhofer-Gesellschaft Resource Technologies and Bioeconomy Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Development of a palm oil-free compound in the lab Photo: Mibelle Group, 2025 Modern processes help keep plastics in useful circulation while maintaining the quality required by industry and con- sumers Photo: Fraunhofer IVV Industrial collaboration Palm oil substitute from CO2 recycling After many years of research in the ﬁeld of modern biotechnolo- gy, the Mibelle Group, LanzaTech and the Fraunhofer Institute for Interfacial Engineering and Biotechnology IGB have succeeded in producing palm oil-free fat from CO2. The greenhouse gas CO2 is converted into a palm oil-free fat blend by combining two suc- cessive fermentation processes. The novel fat blend is so similar in composition to palm oil that it could in the future replace tropical oils in a wide range of applications, including food, cosmetics, cleaning products and biofuels. Given that large areas of rainforest are still being cleared for palm oil cultivation, this groundbreaking innovation is a major opportunity for environmental and climate protection. Funded initiative Packaging made of recycled plastics One of the targets set by the European Green Deal is that pack- aging will contain up to 30 percent recycled plastics by 2030. How- ever, recycled plastics are not yet available in sufﬁcient quantities. It is particularly important to produce recycled materials that are as pure and odor-neutral as possible. This can only be achieved by measures such as the implementation of new sorting technologies that can separate materials by type in order to improve recyclate quality. AI methods offer signiﬁcant potential in this area, which is why the German Federal Ministry of Research, Technology and Space (BMFTR) launched the grant initiative AI Application Hub on Plastic Packaging—Sustainable Circular Economy Through Artiﬁcial Intelligence in 2022. In the ﬁrst stage of the fermentation processes, gas that would otherwise have been emitted as CO2 is biotechnologically convert- ed into alcohol using a gas fermentation process developed by LanzaTech. This process is loosely similar to brewing beer, except that CO2 is used as the starting material rather than grain. During the second fermentation process, which was largely developed by Fraunhofer IGB, the alcohol produced from the CO2 is converted into the required fats using specialized oleaginous yeasts. Both fer- mentation processes use only naturally occurring, non-genetically modiﬁed microorganisms. The end product is a versatile, high-qual- ity fat that is 100 percent palm oil-free and natural. Following the development work at Fraunhofer IGB’s Straubing branch and appli- cation testing by the Mibelle Group, the partners produced the ﬁrst product samples at kilogram scale at the Fraunhofer Center for Chemical-Biotechnological Processes CBP in Leuna. Numerous Fraunhofer institutes are also involved in the hub’s two innovation labs: KIOptiPack, which focuses on design and produc- tion, and K3I-Cycling, which focuses on closing cycles. The innova- tion ecosystems for the circular economy created by Fraunhofer are contributing, for example, to the development and optimization of packaging and plastic recycling materials. Fraunhofer institutes are also involved in projects relating to digital twins and product passports. Other Fraunhofer activities focus on material identiﬁ- cation to improve sorting quality. Overall, more than 50 partners from industry, science and society are involved in the hub, where they pursue the shared goal of closing the value chain and keeping plastic packaging in the loop. Milestones already achieved include a software solution for packaging development and IT models that connect stakeholders in the plastic packaging industry in a virtual data space. 67

2025 annual report Fraunhofer-Gesellschaft Defense and Security Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information One possible application for a miniaturized quantum magneto- meter could be to complement GPS-based satellite navigation Photo: Fraunhofer IAF In collaboration with contracting authorities AI against cyberattacks on companies The threat of cyberattacks and industrial espionage has continued to rise in recent years. Many companies and government agencies therefore depend on security information and event management (SIEM) systems, which use detection rules and signature recognition to protect users from cyberattacks. However, attackers can bypass these with relative ease. A team of experts at the Fraunhofer Insti- tute for Communication, Information Processing and Ergonomics FKIE has now developed an open-source system named AMIDES (Adaptive Misuse Detection System), which uses AI to identify attacks often missed by conventional signature checks. In order to achieve maximum efﬁciency in real-world situations, supervised machine learning was used to train AMIDES to detect attacks that resemble existing signatures. The system was also optimized to keep false alarms to a minimum. AMIDES uses adaptive misuse detection to correctly distinguish potential attacks from harmless events. Analysts can also use AMIDES to assign rules to detected events—something that is not usually possible with machine learn- ing approaches. AMIDES has already been evaluated through extensive testing using real-world data from a German government agency. When set to standard sensitivity, the system successfully detected 70 percent of evasion attempts without false alarms. Measurements showed that the system is also fast enough for live operation in very large corpo- rate networks. The freely available open-source software is aimed primarily at larger organizations that already have central security monitoring systems and processes in place and are now looking to improve them. Funded initiative Redefining measurement with quantum magnetometers A compact integrated vector magnetometer offers the potential for extremely high measurement precision and entirely new applica- tions. The quantum sensor developed at the Fraunhofer Institute for Applied Solid State Physics IAF is based on nitrogen-vacancy centers (NV) in diamond and can access even the weakest magnet- ic ﬁelds with exceptional precision and unprecedented flexibility. New applications are emerging wherever exact measurement is needed with minimal interference, for instance as an alternative to GPS navigation, to locate deeply buried objects such as unexploded ordnance or metal ore deposits, for biochemical measurements in nerve pathways and for materials testing in microelectronics. The researchers at Fraunhofer IAF achieved a 30-fold reduction in the size of their integrated quantum magnetometer within just one year. The sensor head was reduced to roughly the size of a conven- tional optically pumped gas-cell magnetometer. The measurement system is extremely robust, requires minimal calibration and is easy to use, while offering high sensitivity in the picotesla range. Water cooling is available as an option. One example of a new application is an autonomous navigation system that is based on Earth’s magnetic ﬁeld and does not depend on satellite signals. This could complement GPS-based satellite navigation. The vector magnetometer also works in environments such as underground, underwater, in canyons, inside buildings or in tunnels. The compact integrated quantum magnetometer was presented at World of Quantum at the LASER trade show. The researchers are working on additional improvements. The ADEQUADE project receives funding from the European Union’s European Defence Fund (EDF). 68

Awards 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Fraunhofer science prizes in 2025 Joseph von Fraunhofer Prize Fraunhofer Founder Award Since 1978, the Fraunhofer-Gesellschaft has awarded the Joseph von Fraunhofer Prize annually to its employees for outstanding scientific achievements that solve practical problems. Criteria for awarding the prize include how new and innovative the scientific and methodical approach is, the advancement of knowledge and the implementation of the scientific results in practical applications. Three Joseph von Fraunhofer Prizes were awarded in 2025, each endowed with €50,000 in prize money. The High-Tech Gründerfonds and the Fraunhofer-Gesellschaft have awarded the Fraunhofer Founder Award, endowed with €50,000, every year since 2016. The award goes to a successful spin-off that generates direct beneﬁts for society through its products and ser- vices. The High-Tech Gründerfonds was founded in 2005 by repre- sentatives of the German Federal Ministry for Economic Affairs and Energy (BMWE), the industrial sector and industry experts. Hugo Geiger Prize The Bavarian Ministry of Economic Affairs, Regional Development and Energy awards the Hugo Geiger Prize for outstanding doctor- al theses written in collaboration with Fraunhofer institutes. The award is named after the Bavarian State Secretary Hugo Geiger, who sponsored the inaugural assembly of the Fraunhofer-Ge- sellschaft on March 26, 1949. Innovations for a Better Future Award from the Fraunhofer Future Foundation The Fraunhofer Future Foundation supports technological research projects that aim to overcome global challenges. It therefore supports Fraunhofer researchers in developing products, services and business models that enhance people’s quality of life and that focus on more than purely economic beneﬁts. In 2025, the Fraunhofer Future Foundation presented the Innovations for a Better Future award for the ﬁrst time. This award recognizes the achievements of a Fraunhofer team that has succeeded in trans- lating a technological solution into practice, thereby making a special contribution to sustainable development in line with the UN Sustainable Development Goals (SDGs). The prize is endowed with €50,000 and made possible by generous support from private donors. This project-speciﬁc funding will be used to further devel- op the project. 69

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information i k s w o r e z c n a B i r t o P / r e f o h n u a r F : o t o h P 2025 Joseph von Fraunhofer Prize Energy transition—sustainable, low-cost batteries for the electric vehicle of tomorrow Electric mobility and the associated sustainable, low-cost produc- tion of lithium-ion batteries are crucial to the transformation of the energy sector. To compete with manufacturers based in Asia, German automotive ﬁrms and battery cell producers are working on alternatives to the costly and energy-intensive process of coat- ing electrodes. Benjamin Schumm, Holger Althues and Stefan Kaskel from the Fraunhofer Institute for Material and Beam Technology IWS in Dres- den have succeeded in developing an efﬁcient and scalable alter- native to conventional electrode coating. Their DRYtraec method reduces energy demand, thereby also lowering the costs of pro- ducing battery electrodes. This may help boost the competitiveness of battery production in Germany. DRYtraec technology, which is protected by basic patents, involves creating an electrode coating directly from a dry mixture consisting of active material, conductive carbon and binders. Unlike the conventional method, no solvents are used in the process. This eliminates the energy-intensive drying step, and coating systems can be made about 50 percent more compact. The innovative method is an outstanding step forward in sustainable production of current and future batteries and has already attracted great interest from businesses along the battery value chain. The jury highlighted the “high potential for indepen- dent battery production in Germany and Europe.” 70 (From left) Benjamin Schumm, Stefan Kaskel and Holger Althues

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Andrea Mross (left) and Thomas Waschkies were awarded the 2025 Joseph von Fraunhofer Prize for their development of the mobile, ultrasound-based measuring system AloX Finances About Fraunhofer Publisher’s information Thomas Richter, Joachim Keinert and Siegfried Fössel (from left) have established an internation- ally recognized ISO standard with their comprehensive software and patent portfolio Photos: Fraunhofer / Piotr Banczerowski 2025 Joseph von Fraunhofer Prize Aluminum production—ultrasound reliably detects inclusions Aluminum is a raw material that can be used strategically to achieve climate neutrality. The use of secondary aluminum contrib- utes to the circular economy—but only if the recycled raw material is sufficiently pure. The Fraunhofer Institute for Nondestructive Testing IZFP addressed this issue by developing AloX, an ultra- sound-based measurement system, and adapting it to the extreme conditions found in molten aluminum. This cost-effective tool enables fast, continuous and precise measurement of nonmetallic inclusions in molten aluminum. In its statement, the jury empha- sized that the team had entered “uncharted territory” by adapting ultrasonic measurement technology to the conditions involved in working with molten aluminum. 2025 Joseph von Fraunhofer Prize JPEG XS—pioneering standard for All-IP video production JPEG XS, developed by the Fraunhofer Institute for Integrated Cir- cuits IIS, is a next-generation image compression format that trans- mits high-quality images to production environments with minimal latency, low resource consumption and virtually no loss of quality. Beyond its unique role in transmitting very high-quality images, it also offers economic advantages for studio technology and other ﬁelds, such as machine vision and self-driving vehicles. Among the points noted by the jury was the fact that this groundbreak- ing standard has already been implemented in devices produced by various manufacturers. The developers of JPEG XS also won a Technology & Engineering Emmy® Award. 71

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Innovations for a Better Future Award from the Fraunhofer Future Foundation A healthcare platform for off-road vehicles As part of the PreCare project, research teams from the Fraunhofer Institute for Surface Engineering and Thin Films IST and the Fraunhofer Institute for Solar Energy Systems ISE have developed a solution enabling people in remote regions to access compre- hensive medical care. It consists of a flexible, modular healthcare platform that can be mounted on off-road vehicles and is already in use in South Africa and Namibia. The health platform, mounted on the bed of a pickup truck, offers the infrastructure needed for a medical examination in a very compact space. Electrical equip- ment, such as the refrigeration system for medications and blood samples, is operated via an independent solar power supply. There is even a water puriﬁcation system on board. A system based on diamond-coated electrodes makes it possible to produce disinfec- tants from a simple sodium chloride solution while in the ﬁeld. The ﬁrst prototype was delivered to an NGO in South Africa in 2023. Funding from the Fraunhofer Future Foundation then made it pos- sible to develop a second prototype in Namibia. S Mile Solutions (Pty) Ltd, which was founded during the project, is now handling the manufacturing, sales and maintenance. It is Fraunhofer’s ﬁrst spin-off in South Africa. PreCare combines innovation with the needs of communities in rural areas. Its adaptability to medical requirements sets new standards for mobile healthcare. In their remarks praising this year’s winner, the jury highlighted the network of researchers, compa- nies, non-governmental organizations and government agencies and the focused efforts made by the partners, which can be extended to areas such as disaster aid and veterinary medicine. i k s w o r e z c n a B i r t o P / r e f o h n u a r F : o t o h P (From left) Frank Neumann, Ricarda-Laura Sack, Joachim Koschikowski and Simone Kondruweit-Reinema 72

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Arik Lämmle (Cellios CEO, center) with Nils Lang (right), High-Tech-Gründer- fonds, and Fraunhofer President Holger Hanselka at the presentation of the 2025 Fraunhofer Founder Award Photo: Fraunhofer / Markus Jürgens Fraunhofer Founder Award Cellios offers automated cable assembly The Fraunhofer spin-off Cellios GmbH has won the Fraunhofer Founder Award, which is endowed with €50,000. The spin-off of the Fraunhofer Institute for Manufacturing Engineering and Automation IPA impressed the jury with a robotics solution that closes an automation gap for Industry 4.0. Cellios is revolutionizing industrial production with an application for fully automated cable assembly. Its force-control software enables robots to insert and route cables with almost the same sensitivity as human hands. The solution addresses key challenges facing domestic industry: skills shortages, high labor costs and fragile global supply chains. Its intelligent Robotic Assembly Cell (intRAC) is a turnkey hardware and software solution. Its applications range from demanding cable assembly tasks to the assembly of complex wiring harnesses for the automotive industry. Thanks to its modular design, the solution can be adapted to operational requirements and deployed immediate- ly. It also offers signiﬁcant potential for cost savings for industrial companies: Until now, manual assembly has accounted for around 75 percent of total costs, forcing many companies to relocate their manufacturing operations abroad. Cellios robot cells achieve an automation level of more than 90 percent and can be operated by the company’s current staff at competitive cost. The investment pays off after two to three years. At the award ceremony, the jury acknowledged the strong message this sends for Germany as an industrial base: Cellios is a prime example of what Fraunhofer aims to achieve through technology transfer—cutting-edge research that solves real-world problems and gives small and medium-sized enterprises (SMEs) a competitive edge. 73

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Christopher Spiess, Fraunhofer IOF Christian Weber, Fraunhofer IPM Anne-Sophie Munser, Fraunhofer IOF Photo: Fraunhofer IOF Photo: Fraunhofer IPM Photo: Fraunhofer IOF 2025 Hugo Geiger Prize | First place Synchronization in picoseconds with single photons 2025 Hugo Geiger Prize | 2nd place Innovative trace-gas sensors using the photoacoustic effect 2025 Hugo Geiger Prize | 3rd place Detecting bacteria and resistance more quickly High-precision time synchronization is key to the security and efﬁciency of modern technologies— including quantum communication, the secure counterpart to conventional data transmission. In his dissertation at the Fraunhofer Institute for Applied Optics and Precision Engineering IOF, Christopher Spiess developed a process that does not require additional synchronization lasers or ultra-stable atomic clocks and can be seamlessly integrated into existing quantum communica- tion systems. His approach relies solely on the single photons already present in the system, thus enabling picosecond accuracy with minimal resources—both in turbulent free-space links and in ﬁber-optic links several kilometers long. For his doctorate with the Fraunhofer Institute for Physical Measurement Techniques IPM, Christian Weber developed measurement techniques for monitoring harmful trace gases such as CO2 and NO2 reliably and cost-effectively over large areas. These are based on the photoacoustic effect: light generates sound, the intensity of which delivers precise information about gas concen- trations. Weber developed a small CO2 sensor with low power consumption and low mainte- nance requirements along with a compact, highly sensitive NO2 sensor. The sensors can detect these gases much more reliably and cost-effectively than before, for instance in tunnels, in medical technology or when searching for leaks. The sensor technology has already been integrated into more than ten industry projects. Anne-Sophie Munser’s doctoral work with the Fraunhofer Institute for Applied Optics and Preci- sion Engineering IOF involved applying angle- resolved scattered-light analysis, a measurement technique used in photonics, to microbiological samples. This makes it possible to visualize even small numbers of bacterial cells within just a few hours, thus eliminating the need for time- consuming cultivation. The method is based on characteristic light scattering, which provides in- formation about cell structure and aggregation. It is suitable for compact high-throughput sys- tems and can be integrated into a lab-on-a-chip. It can help detect dangerous antibiotic resistance at an early stage and is also useful for monitoring food and drinking water. 74

National and international research prizes 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information S I I r e f o h n u a r F : o t o h P At the 2025 Emmy® Awards, where the JPEG XS took a prize: (from left) Thomas Richter, Wolfgang Heppner and Siegfried Fössel Technologies for the dream factory Fraunhofer researchers have now received a Technology & Engi- neering Emmy® Award for the sixth time. The award, presented in October 2025, honored the development of JPEG XS and the implementation of the video codec in products used in next- generation media production workflows (see page 71). In Decem- ber, the team led by Ingo Hoffmann of the Fraunhofer Institute for Integrated Circuits IIS was delighted to receive a second Emmy. Together with the MPEG (Moving Picture Experts Group) systems group, he accepted a Technology & Engineering Emmy® Award in New York. The award was given in recognition of the Common Media Application Format (CMAF), which helped standardize the fragmented streaming landscape of the 2010s, when content still had to be adapted to different protocols and playback devices. Four awards had previously been presented for developments in which researchers from the Fraunhofer Institute for Telecommuni- cations, Heinrich-Hertz-Institut, HHI played a major role. In 2008 and 2009, Emmys were awarded in recognition of the video coding standard H.264 (MPEG-4 AVC), which enables a signiﬁcant reduc- tion in video data and serves as the technical basis for digital video distribution across formats ranging from HDTV to streaming and social media services. In 2014, MPEG was honored for developing the MPEG-2 transport stream. In 2017, this was followed by an Emmy® Engineering Award for the HEVC standard, which enables videos to be transmitted efﬁciently in ultra-high deﬁnition. In 2012, a team of researchers from ARRI® and the Fraunhofer Institute for Physical Measurement Techniques IPM had accepted an Academy Award of Merit from the Academy of Motion Picture Arts and Sciences for the design and development of ARRILASER, a laser ﬁlm recorder. 75

The Synergy Grants awarded by the European Research Council (ERC) are among Europe’s most prestigious and highest-funded research awards. They are grant- ed exclusively to teams whose members come from different disciplines and are combining their expertise to pursue a particularly ambitious research goal with potentially groundbreaking impact. 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Stefan Glunz Photo: Fraunhofer ISE Rüdiger Quay Photo: Fraunhofer IAF ERC Synergy Grant Solar cells of the future: resource-saving and more efficient Stefan Glunz’s aim with the UltimatePV—Ultimative Photovolta- ics project is to develop a future generation of resource-efﬁcient photovoltaic technologies with maximum conversion efﬁciency. Photonic structures will greatly improve the optical properties of the solar cells while reducing material consumption tenfold. This will make it possible to create ultrathin solar cells with a signiﬁ- cantly higher concentration of charge carriers. Once excited by light, the charge carriers can be extracted using energy-selective contacts before they lose part of their energy through thermaliza- tion. Glunz is professor of photovoltaic energy conversion at the Institute for Sustainable Systems Engineering (INATECH) at the University of Freiburg and heads the photovoltaics research divi- sion at the Fraunhofer Institute for Solar Energy Systems ISE. The other scientists involved in the Ultimative Photovoltaics project are Christoph Ballif from EPFL (École polytechnique fédérale de Lau- sanne, Switzerland) and Stéphane Collin from the National Centre for Scientiﬁc Research (CNRS, Paris, France). The partner institutes include the Centre Suisse d’Electronique et de Microtechnique (CSEM), the Center for Nanoscience and Nanotechnology (C2N) and the Institut Photovoltaïque d’Île-de-France (IPVF). ERC Synergy Grant Future mobile networks: using half the energy A revolutionary technology for digital high-frequency ampliﬁers could help counteract the growing energy demand of future mobile networks. As part of the DISRUPT (Digital RF Power) proj- ect, Rüdiger Quay, Director of the Fraunhofer Institute for Applied Solid State Physics IAF, will be working with an international team of experts from TU Delft and University College Dublin to develop a revolutionary digital high-frequency ampliﬁer technology designed to substantially reduce the rising energy demand of future mobile networks. DISRUPT addresses the growing environmental impact of wireless communication. The current carbon footprint of global wireless communication networks is comparable to that of aviation, accounting for 2 to 3 percent of CO2 emissions. Without signiﬁcant innovations, this ﬁgure will rise sharply as 5G and 6G communication systems become more widespread. DISRUPT aims to develop a groundbreaking digital high-frequency architecture for power ampliﬁers that could reduce the energy consumption of next-generation mobile networks by up to 50 percent. The consortium will work closely with industry partners to ensure rapid technology transfer and long-term beneﬁts for society. 76

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Simulation of a friction contact: The digital twin for lubri- cants in highly loaded friction contacts establishes a math- ematical link between macroscopic friction and the atomic dynamics in the lubrication gap. A better understanding of the fundamental causes of friction-related energy consump- tion in technical systems such as bearings and drives would facilitate the construction of more energy-efﬁcient machines, industrial systems and vehicles. Image: Fraunhofer IWM Michael Moseler Photo: Kai Wudtke / Fraunhofer IWM Lucie Flek Photo: Maximilian Waidhas / University of Bonn ERC Advanced Grant Digital twin for reducing friction losses in industrial systems The ERC Advanced Grant enables Europe’s leading research- ers to continue pursuing their research projects by awarding €2.5 million per project. In 2025, one such grant was awarded to Michael Moseler, Business Unit Head at the Fraunhofer Institute for Mechanics of Materials IWM and professor of simulation of functional nanosystems at the University of Freiburg. Moseler’s work focuses on modeling friction, lubrication and wear at the atomic level. In systems where components move against one another, calculations suggest that friction losses can account for up to 20 percent of their energy consumption. Michael Moseler aims to leverage this potential for energy savings and sustainabil- ity by developing a digital twin (LubeTwin) for lubricated friction contacts. In order to gain virtual insight into friction mechanisms that have so far remained unexplored and inaccessible, the project will, for instance, generate extreme-scale atomistic simulations using data from up to one billion atoms and combine them with machine-learning-based AI models. The project will place particular emphasis on classical and quantum-mechanical molecular dynam- ics simulations of tribologically induced phase transitions, as well as the rheology and reactivity of lubricants. ERC Starting Grant AI systems with social intelligence Lucie Flek has received one of the starting grants awarded by the European Research Council (ERC) worth €1.5 million. The com- puter science professor conducts research at the Lamarr Institute, involving the Fraunhofer Institutes for Intelligent Analysis and Information Systems IAIS and for Material Flow and Logistics IML, as well as at the Bonn-Aachen International Center for Informa- tion Technology (b-it). Flek will use the grant to advance a project aimed at making AI more socially intelligent. The LLMpathy project aims to train AI systems to analyze and correctly explain human thoughts and emotions, much as they already handle mathemat- ical problems. AI systems are increasingly taking on social roles such as counselors or conversational partners in difﬁcult situations. Until now, however, they have often failed at moments when empathy, judgment and social understanding matter most. Socially intelligent AI systems could also help uncover unethical forms of personalization, such as AI exerting emotional pressure in adver- tising, and ensure that future AI systems meet high standards of transparency, trustworthiness and ethical conduct—in line with the upcoming EU AI Act. 77

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Kai Sohn Finances About Fraunhofer Publisher’s information DNA fragments can be detected in blood using next-generation sequencing i k s w o r e z c n a B i r t o P / r e f o h n u a r F : s o t o h P EARTO Innovation Award—Impact Delivered New procedure for diagnosing sepsis The European Association of Research and Technology Organisa- tions (EARTO) presents annual awards for innovations with sig- niﬁcant economic and social impact. In 2025, a high-throughput method for identifying sepsis pathogens won second prize in the Impact Delivered category. This novel method is based on next- generation sequencing (NGS) and was developed at the Fraunhofer Institute for Interfacial Engineering and Biotechnology IGB. The conventional method of culturing pathogens from a blood sample in the laboratory not only takes time but also delivers a positive result in only 30 percent of cases. The new Fraunhofer method uses the genetic material of the pathogens present in the blood and enables the isolation and sequencing of up to 30 million DNA fragments. For DNA fragments of non-human origin, the sequencing results are compared with a specially developed data- base containing genome sequences from bacteria, viruses, fungi and parasites. This allows pathogens to be reliably identiﬁed within just 24 hours. Clinical studies led by Universitätsklinikum Essen (University Hospital Essen) conﬁrm that the new approach clear- ly outperforms previous diagnostic standards. Faster diagnostics combined with precisely targeted therapy allow patients to recover more quickly, thus reducing costs for the healthcare system. The diagnostic method is marketed commercially by Noscendo GmbH, a Fraunhofer IGB spin-off. Hospitals can also send samples to the startup and have them analyzed within a very short time. Blood samples from more than 15,000 patients have been analyzed in this way over the last ﬁve years. 78

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information EU Commission RegioStars Award New mobility on old tracks At the EU Commission’s RegioStars Awards for 2025, the trans- portation project MONOCAB with its vision “New Mobility on Old Tracks” was announced as the winner of the category A “Connect- ed Europe.” The aim is to use a gyroscopically stabilized, self-driv- ing monorail vehicle (MONOCAB) to bring disused railway lines in rural areas back into service and provide flexible local passenger transport. The vehicle is designed as a single cabin for 4 to 8 passengers that runs on just one rail, allowing vehicles traveling in opposite directions to pass each other on a single track. This could help preserve rural communities. According to the jury, this project shows how social innovation and technological excellence can go hand in hand. MONOCAB started out as a voluntary initiative and has attracted numerous supporters and sponsors. The project part- ners are the universities of Ostwestfalen-Lippe and Bielefeld and the Lemgo institute branch of the Fraunhofer Institute for Optron- ics, System Technologies and Image Exploitation IOSB. A family of MONOCAB projects has now been established at the Fraunhofer location in Lemgo. The goal is for MONOCAB vehicles to be pro- duction ready by 2032. JEC Composites Innovation Awards 2025 Novel lightweight designs for transportation Awards for digital airfreight How airfreight is becoming more digital The Multi-Functional Fuselage Demonstrator (MFFD) received the JEC Composites Innovation Award for 2025 in the Aerospace— Parts category. Fraunhofer played a signiﬁcant role in the devel- opment of the MFFD as part of the EU’s Clean Sky 2 and Clean Aviation programs. With the MFFD, a consortium of industry and research partners became the ﬁrst in the world to demonstrate that thermoplastic construction methods suitable for automated manufacturing can increase production efﬁciency in high-rate aircraft fuselage production while signiﬁcantly reducing weight. The demonstrator achieved a 10 percent reduction in weight, thereby reducing CO2 emissions while cutting production costs by 10 percent. Fraunhofer contributed by automating the assembly of the upper and lower shells of the MFFD’s eight-meter-long fuselage section and developing the laser welding and gap-ﬁlling processes used for thermoplastic CFRP joints. A storage compartment flap for a truck cab made using a lightweight sandwich design won a JEC Innovation Award in the Automotive and Road Transportation— Process category (see page 67). The achievements of the Digital Testbed Air Cargo (DTAC) project have been recognized by several awards at high-level industry events. In 2025, the consortium, led by the Fraunhofer Institute for Material Flow and Logistics IML, was presented with the STAT Times International Award for Excellence in Air Cargo in Nairobi (Kenya). Competitors included big-name industry stakeholders. The award was given out at air cargo Africa 2025, a leading industry trade show and conference. It marks a milestone in the air cargo project’s success story. The STAT Times International Awards for Excellence in Air Cargo are prestigious awards in the air cargo industry. They recognize signiﬁcant contributions, innovations and leadership, helping inspire further innovation and growth within the air cargo community. Later, the International Air Cargo Associ- ation (TIACA) presented the Air Cargo Sustainability Award to the consortium at a ceremony in Hong Kong. This prize is awarded to outstanding companies and industry initiatives aimed at making air cargo more sustainable. The jury was also impressed by the consor- tium’s social engagement in various school projects. Self-driving monorail vehicle on the test track in Extertal Photo: MONOCAB The aircraft fuselage section at Fraunhofer in Stade, fully joined by thermoplastic welding Photo: Fraunhofer IFAM Digitalization and auto- mation in action for more sustainable air freight Photo: Fraunhofer IML / Vinzenz Neugebauer 79

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Sustainability Award in Automotive Electric semitrailer tractors The Sustainability Award in Automotive is awarded annually by the ATZ/MTZ publishing group in collaboration with experts from Arthur D. Little. It recognizes sustainable solutions that help achieve climate protection and sustainability goals. The winner of the Open Innovation category was a project funded by the German Federal Ministry for Economic Affairs and Energy (BMWE) and involving the Fraunhofer Institute for Structural Durability and System Reliability LBF. The evTrailer2 research project assesses the potential of various technologies for electriﬁed semitrailer systems in long-distance transport (N3 vehicles, meaning goods vehicles over twelve metric tons) and for driving safety. The aim is to develop efﬁcient technol- ogies to reduce fuel consumption and greenhouse gas (GHG) emis- sions from semitrailer tractors. The research group identiﬁed and successfully combined highly efﬁcient technologies for reducing fuel consumption and GHG emissions. By optimizing an electrical- ly powered semitrailer to reinforce the tractor unit’s traction, the project cut GHG emissions by up to 40 percent. Autonomous electric drive collaboration system for truck and vehicle trailers Image: evTrailer Zeichnung / CuroCon GmbH Werner Siemens Foundation funds tandem photovoltaics Cutting material and manufacturing costs Every year, the Swiss-based Werner Siemens Foundation provides funding for a small number of pioneering technical and scientiﬁc research projects that address major challenges of our time. The Foundation awards substantial grants to ﬁnance the initial phase of outstanding, innovative technical and scientiﬁc projects with strong application potential. The funded projects should then be able to continue independently after a few years, while the resulting inno- vations should be ready for industrial use. In 2025, a team from the Fraunhofer Institute for Solar Energy Systems ISE qualiﬁed for funding with its Sustainable Energy Transition Through High Efﬁ- ciency Tandem Photovoltaics project. The Werner Siemens Foun- dation will be providing €14 million by 2032 to help this promising technology achieve commercial success. Researchers at Fraunhofer ISE have been working on high-efﬁciency III-V multi-junction solar cells for more than twenty years. This type of cell stacks two to six subcells made of III-V compound semicon- ductors or germanium on top of one another to make optimal use of sunlight. Fraunhofer ISE holds numerous records in this ﬁeld, including for the world’s most efﬁcient solar cell, with an efﬁciency of 47 percent, and for the most efﬁcient hybrid concentrator PV module, with an output of 350 W/m2. III-V multi-junction solar cells achieve the highest efﬁciencies of any photovoltaic technology. They are robust and remain stable over long periods, which is why they have been used by satellites in space for more than twenty years. However, they have not yet gained a foothold in the market because their material and manufacturing costs are around 100 times higher than those of standard solar cells. Over the next few years, Fraunhofer ISE aims to signiﬁcantly reduce the manufacturing costs of these cells and make their use in concentrator and flat-plate modules more economically viable. In the years ahead, the technological work will focus on two areas: reusable substrates for III-V epitaxy and very low-cost, scalable processes for epitaxy and solar cell manufacturing. The team also plans to demonstrate next-generation concentrator PV modules. The Fraunhofer-Gesellschaft will be providing another €1.4 million for the upcoming research work. Frank Dimroth (left) and Andreas Bett with high-efﬁciency multi-junction solar cells Photo: Fraunhofer ISE / Dirk Mahler 80

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Factory Innovation Award Factories that save energy and resources German Sustainability Award Solar institute demonstrates sustainability in operation Award for 3D printer drivers Global licensing demonstrates demand The Smart E-Factory project won a Factory Innovation Award for 2025 in the category “Research / Sustainable Factory.” The project enables factories to improve their energy efﬁciency and conserve more resources during production, thus pursuing an important goal designed to safeguard the competitiveness of German manufactur- ing companies. By developing innovative technologies, for instance to optimize the use of renewable energy, AI and DC grids, the project is making a vital contribution to the UN’s Sustainable Devel- opment Goals, especially in the areas of clean energy (SDG 7) and climate action (SDG 13). The award recognized the SmartFactory OWL consortium and the Lemgo institute branch of the Fraunhofer Institute for Optronics, System Technologies and Image Exploitation IOSB. The Smart E-Factory project is funded by the German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN). The award is presented in cooper- ation with Hannover Messe and the organizer GITO Verlag. Each year, the Factory Innovation Award is presented to the best smart factory software solutions in Europe. The Fraunhofer Institute for Solar Energy Systems ISE won the German Sustainability Award in the Research and Development category. This award recognizes Fraunhofer ISE’s sustainability research and its commitment to integrating sustainability into its operational processes. In its statement, the jury highlighted the institute’s Energy Charts and the record-breaking efﬁciency of its photovoltaic (PV) modules, with particular emphasis on the restruc- turing of Europe’s largest solar research institute: “Its own infra- structure serves as a living laboratory for pioneering technologies, including building-integrated photovoltaics and innovative heating and cooling systems. This is complemented by a clear governance system, energy management certiﬁed to ISO 50001, regular green- house gas emission inventories and active resource management, ranging from chemical sharing platforms to IT hardware reuse.” The German Aerospace Center (DLR) and GEOMAR Helmholtz Centre for Ocean Research were honored alongside Fraunhofer ISE in the same award category. One way in which the German Federal Ministry of Research, Technology and Space (BMFTR) promotes the transfer of scien- tiﬁc results into application and commercialization is through its program “Validation of the Technological and Societal Innovation Potential of Scientiﬁc Research (VIP+).” One of the 2025 validation awards went to a development from the Fraunhofer Institute for Computer Graphics Research IGD: Researchers working on the Robust3D project advanced the development of a technology for the automated preparation of complex graphical 3D models for 3D printing and successfully validated its ability to guarantee print- ability. The method automatically corrects structural model errors such as holes, non-manifold edges and geometries that are too thin. This can reduce the number of manual corrections required. The technology has been integrated into the Cuttleﬁsh® 3D printer driver and is licensed worldwide, for instance to big tech compa- nies, Hollywood studios, 3D printer manufacturers, game develop- ers and healthcare companies that produce cosmetic prosthetics. The 3D printer driver is an important step toward individualized mass production in 3D printing, even when the input models contain errors. Living laboratory for Industry 4.0 at SmartFactory OWL in Ostwestfalen-Lippe Photo: Fraunhofer IOSB PV modules with a green MorphoColor® structural layer on the wall of the Fraunhofer ISE building Photo: Fraunhofer ISE Benedikt Bläsi Cuttleﬁsh® has already been used to produce hundreds of thousands of PolyJet 3D prints for customers in a range of industries Photo: Fraunhofer IGD 81

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information People behind the research Here we spotlight researchers whose enthusiasm and exper- tise reflect Fraunhofer’s work. Through their research, Fraunhofer is making a key contribution to securing Germany’s future as an industrial base. Top: (From left) Claudia Eckert, Diego Collarana and Manuela Junghähnel Bottom: (From left) Wolfgang Koch, Sarah Klein and Hans-Martin Henning 82

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information t t o g r e d d e H s a e r d n A : o t o h P r e l l ü M d n r e B : o t o h P Digital sovereignty as a lifelong mission Digital systems control production, transportation and healthcare systems—in fact, almost every aspect of our lives. However, while these systems create new possibilities and opportunities, they also entail risks, especially given the rise of AI and quantum-based systems. Countless cyber incidents—with numbers still rising—have shown what would be at stake without reliable security architectures, whether in the energy sector or in healthcare, industrial production, corporate services or public administration. Few research scientists in Germany have devoted their lives and careers as tirelessly to the security of digital systems as Claudia Eckert. For decades, she has played a major role in shaping IT and cybersecu- rity in Germany and Europe, both in the scien- tiﬁc community and as an advisor to ministries and companies. As a professor, she has trained generations of security experts. As director of the Fraunhofer Institute for Applied and Integrated Security AISEC, she has shaped the debate around a new security culture, in which security require- ments are integrated into the development, oper- ation and use of digital services from the outset with the aim of improving the security of main- stream commercial products in the long term. Claudia Eckert has served as scientiﬁc president of acatech (German National Academy of Science and Engineering) since June 2025. In April 2026, Siegfried Russwurm joined her as co-president representing industry. As a bridge between engineering and industry, acatech focuses on expertise, innovation and growth, all of which are urgently needed today. This was made very clear at acatech’s ceremony at the end of 2025, which was held in the presence of the German Chancellor. Friedrich Merz emphasized that the future of Germany and Europe depends on the strength of their research and development activities, since they would determine “how prosperous, how free and how safe we will be.” Claudia Eckert is well aware that innovation has to be translated into value creation more quickly. At the same time, she emphasizes that disruptive key technologies require endurance. And because Eckert is described as a dedicated scientist with a strong commitment to supporting young talent, she closed the ceremony with an appeal: “We have reason to be optimistic. We have outstand- ing research, we have highly successful small and medium-sized companies that are willing to innovate, and we also have startups. We need to combine all of this with courage and a willingness to take risks.” Claudia Eckert Director of the Fraunhofer Institute for Applied and Integrated Security AISEC | Professor of Secu- rity in Computer Science, Technical University of Munich | Scientiﬁc President of acatech— German National Academy of Science and Engineering 83 Fraunhofer AISEC server “We have reason to be optimistic. We have out- standing research, we have highly successful small and medium-sized companies that are will- ing to innovate, and we also have startups.” Claudia Eckert

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information TEUKEN is multilingual: 24 European languages reflect European diversity Image: Fraunhofer IAIS “Germany’s economy needs to reclaim its posi- tion at the global fore- front of AI development. The necessary scientific expertise is there.” Diego Collarana Part of a remarkable story Diego Collarana is an expert in AI reliability, especially in large language models. He special- izes in knowledge graphs, which can be used to structure, verify and reﬁne the content of language models for speciﬁc contexts. The group manager at the Fraunhofer Institute for Applied Information Technology FIT previously worked at two other Fraunhofer institutes and fully embrac- es the mission of supporting innovations all the way to market: “I am truly excited to work for Fraunhofer and to be part of this remarkable story.” In the early 2020s, for instance, he and his Fraunhofer team at that time developed semantic models for intelligent and AI-based data analyses for ZF Friedrichshafen. His scientiﬁc publications focus on commercial relevance. His 2016 IEEE paper on the importance of semantic asset administration shells for Indus- try 4.0 is considered a seminal work in this ﬁeld. In 2025, he made a signiﬁcant contribution to a DIN SPEC, a standardization document designed to accelerate the commercialization of new tech- nologies or processes. This addressed the ques- tion of how language models can create value for companies. The answer: with automation and the development of new business models based on context-speciﬁc language models. This is where Diego Collarana sees opportunities that could rekindle Germany’s economic growth. Computer scientist Collarana ﬁrst came to Europe from his native Bolivia in 2011 through the ERASMUS program, initially spending time in Madrid, then moving to Geneva and ﬁnally to Kaiserslautern. From 2019 to 2023, he worked at the Fraunhofer Institute for Intelligent Analysis and Information Systems IAIS, contributing to the development of the SPEAKER conversational AI platform and the TEUKEN language model. His current research group at Fraunhofer FIT is developing methods facilitating the knowl- edge-guided generation of language models with the aim of reducing hallucinations and increasing explainability. Collarana says that discipline and the indefatiga- ble pursuit of his goals, even when faced with resistance, are what brought him to where he is today: “In Bolivia, structural obstacles strength- en your resilience.” Since 2020, he has been teaching Bolivian AI students part-time to support those in his home country who are working hard to drive progress and growth. As for the country that has become his second home, he says: “Ger- many’s economy needs to reclaim its position at the global forefront of AI development.” In Diego Collarana’s opinion, the scientiﬁc expertise needed to achieve this goal is already present. Diego Collarana Group Manager for Knowledge-Enhanced Large Language Models, Fraunhofer Institute for Applied Information Technology FIT | Dr. rer. nat. (magna cum laude) University of Bonn | Director of the Institute for Computational Intelligence, Universidad Privada Boliviana I T F r e f o h n u a r F : o t o h P 84

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information f l o W a v i l i S : o t o h P “Technological sover- eignty begins where we not only master the integration of functionalities, but also actively shape it.” Manuela Junghähnel Hybrid bonding (die-to-wafer) at coupon level—direct chip-to-wafer bonding for ultraﬁne pitch spacing and reliable 3D inte- gration Photo: Fraunhofer IZM / Silvia Wolf A face of European resilience One of physicist Manuela Junghähnel’s central projects right now is APECS. This large-scale project is a key component of the European Chips Act. Since 2024, a consortium has been collaborating within Research Fab Microelectron- ics Germany (FMD) with the aim of redeﬁning innovative semiconductor technologies. In this context, sovereignty in microelectronics does not mean conventional chip production, as practiced for instance in Asia or the United States; it means packaging, stacking and integrating circuits at the highest technological level. Why is this so important? Because in the future, computing processes will run on high-performance (HPC), neuromorphic and quantum computers. And because AI applications are no longer centered on monolithic chips, but on modular chiplets: processors are assembled to speciﬁcation, almost like building blocks. The necessary expertise— knowing how sensors, logic, memory and optics can be combined in a tightly integrated stack through heterogeneous 3D integration—has now become crucial to technological sovereignty in microelectronics. The head of the All Silicon System Integration Dresden—ASSID institute branch of the Fraunhofer Institute for Reliability and Microintegration IZM ﬁrmly believes: “Tech- nological sovereignty begins where we not only master the integration of functionalities, but also actively shape it.” ASSID has been part of a strong microelectronics cluster since 2010, alongside companies such as GlobalFoundries, Bosch and Inﬁneon, as well as the planned ESMC megafab in northern Dresden. Junghähnel took over as head of this Fraunhofer IZM institute branch in 2022. Her enthusiasm for complex technical systems began while she was studying technical physics. She later moved to a Fraunhofer institute in Dresden, where she became head of department for flat substrate coating and the primary contact for customers. This means she brings together precisely what is needed now: expertise in building chip com- ponents and the ability to implement custom speciﬁcations under public funding rules. After a presentation by Junghähnel at Silicon Saxony Day 2025, the trade journal EE Times Europe wrote: “It was a snapshot of what Euro- pean resilience looks like: disciplined, focused, and built on engineering that lasts.” Manuela Junghähnel Manager of ASSID institute branch, Fraunhofer Institute for Reliability and Microintegration IZM | Ph.D. in Technical Physics 85

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information The Edge Computing at the Tactical Edge NATO research group is working on the federation of different national clouds. Picture: NATO STO “Technology is a prerequisite for cultural develop- ment and a life lived in security.” Wolfgang Koch I E K F r e f o h n u a r F : o t o h P Protecting freedom and values Wolfgang Koch knew even as a child that he wanted to study physics. To round out his inter- ests, he spent his school years immersed in the humanities. Reading the ancient Greek think- ers greatly helped him develop a philosophical understanding, says the expert in sensor data and information fusion, ergonomic human-machine systems and the use of AI in military contexts. As a research scientist and a Catholic, Koch ﬁrmly believes that his research work must be accompa- nied by ethical reflection on the responsible use of technology. He is involved, for instance, in the development of the European Future Combat Air System (FCAS) program. In 2019, he was one of the initiators of a working group on the respon- sible use of new technologies in FCAS. In the fall of 2025, the Federation of German Security and Defence Industries (BDSV) published a position paper on the limits of AI when used in defense technologies, to which he made a substantial contribution. Koch also hosted HISTELCON 2025 in Bonn, a conference organized by the Institute of Electri- cal and Electronics Engineers (IEEE) with the aim of inspiring passion for technology. The world’s largest professional association brings togeth- er 500,000 experts in electrical engineering, information technology and similar disciplines. As co-chair of this prestigious event, Koch contribut- ed not only his expertise as chief scientist at the Fraunhofer Institute for Communication, Infor- mation Processing and Ergonomics FKIE and as a member of the NATO Science and Technology Organization, but also his contacts in the cultural world. For Koch, technology is also a prerequisite for cultural development and a life lived in secu- rity. Reflecting this conviction, Koch arranged for conference’s 120 participants to attend a musical dinner with internationally renowned pianist Julia Rinderle. The conference theme, “Knowing the Past for Preparing the Future,” allowed Koch to connect the 100th anniversary of quantum mechanics with the 200th anniversary (in 2026) of the death of Fraunhofer’s eponym. It is well known that Fraunhofer’s refractors and the dis- covery of the lines in the solar spectrum laid the foundations for spectroscopy. However, according to Koch, accurate maps could be created by using precision optics in surveying instruments. During the wars of liberation against Napoleon, this was to prove an advantage for the Prussian army. Dual use—the deployment of technology for both civilian and military purposes—was already a reality at the time, even though the term itself did not yet exist. Wolfgang Koch Chief Scientist and Department Head for Sensor Data and Information Fusion, Fraunhofer Institute for Communication, Information Processing and Ergonomics FKIE | Dr. rer. nat. in physics | Adjunct Professor of Applied Computer Science, Universi- ty of Bonn | Panel Member of NATO Science and Technology Organization (STO) 86

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Manufacture of ﬁber Bragg grat- ings for frequency stabilization of high-power diode lasers Photo: Fraunhofer ILT / Volker Lannert T L I r e f o h n u a r F : o t o h P “Nuclear fusion is the energy source of the stars. We are on the verge of making it usable here on Earth.” Sarah Klein Networking for the energy of the stars Sarah Klein is a Fraunhofer scientist through and through. Before she started studying physics, she completed vocational training as an electronics technician at the Fraunhofer Institute for Laser Technology ILT through RWTH Aachen University. “I have always been drawn to innovations with a strong practical focus,” Klein explains. “That’s why the combination of research and transfer at Fraunhofer ILT was perfect for me, even after I’d completed my physics degree.” During her doctorate, in collaboration with the Lasers and Optical Systems department at Fraunhofer ILT, Sarah Klein made signiﬁcant advances in the development of efﬁcient, fre- quency-stabilized high-power diode lasers, for which she was awarded the Hugo Geiger Prize in February 2025. In October 2025, the suc- cessful amateur powerlifter took charge of the Fraunhofer fusion technology task force. In this capacity, Klein is building up the ﬁeld of fusion research at Fraunhofer and sees herself as the connector between Fraunhofer’s internal network and external partners. “Nuclear fusion is taking us into uncharted territory that previously only existed in science ﬁc- tion,” the physicist says enthusiastically. “This is technology that makes the seemingly impossible possible. Fusion energy is the key to an energy future that is clean, safe and almost limitless.” However, there are still many challenges to overcome before fusion technology can be used commercially. The German federal government’s Fusion Action Plan not only earmarks €2 billion in funding for this purpose but also pledges to commission an industry-led consortium made up primarily of German companies to build a fusion power plant in Germany. “Fraunhofer offers a vast range of expertise for this undertaking, both in laser fusion and magnetic conﬁnement fusion spanning everything from laser and optics development, sensors, simulation and robotics to materials research. And we always maintain strong ties to industry,” Klein explains. She believes that Germany, as an industrial location, is optimally equipped to play a major role in shaping this market. “We need to connect and pool all our capabilities meaningfully if we are to secure a strong position in this emerging market right from the start,” Klein emphasizes. “Nuclear fusion is the energy source of the stars. We are on the verge of making it usable here on Earth.” Sarah Klein Head of Fraunhofer Fusion Technology Task Force, Fraunhofer Institute for Laser Technology ILT | Dr. rer. nat. in physics | Winner of Hugo Geiger Prize 2025 87

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Energy research as a life’s work Floods, landslides, droughts, ﬁres, storms, hail: Europe is one of the world’s regions most severely affected by climate change. The German Federal Climate Change Act (Klimaschutzgesetz, KSG) entered into force at the end of 2019. The German Council of Experts on Climate Change has been monitoring compliance and advising the German federal government on correspond- ing measures since 2020. Hans-Martin Henning chaired the council until September 2025. His rec- ommendation: “Climate action must be central to any national development strategy.” In the fall of 2025, the physicist stepped down from several roles, most notably the leadership of the Fraunhofer Institute for Solar Energy Systems ISE, which he had shared with Andreas Bett since 2017. He also resigned his professorship at the University of Freiburg. Hans-Martin Henning was a deﬁning ﬁgure in German energy research, and not only because of his role as spokesperson for the German Council of Experts on Climate Change. As chair of the Fraunhofer Group for Energy Technologies and Climate Protection and spokesperson for the Fraunhofer Energy Alliance with its 20 member institutes, he positioned Fraunhofer as a partner for industry, government and society. One project especially close to Hen- ning’s heart was the establishment of Fraunhofer ENIQ in Berlin as a showroom and hub for science outreach in Fraunhofer’s energy research. Hen- ning was spokesperson for the Renewable Energy Research Association (FVEE) and will continue to be involved in the Energy Systems of the Future project as a member and deputy chair of the board of directors. The project operates under the umbrella of acatech—the German National Acad- emy of Science and Engineering, the German National Academy of Sciences Leopoldina and the Union of the German Academies of Sciences and Humanities. Hans-Martin Henning’s physics doctorate on adsorbent regeneration using solar-assisted pro- cess heat (1993) laid the foundation for his career as a driving force behind the energy transition and the shift to sustainable heating. His doctoral supervisor was Joachim Luther, who took over as head of Fraunhofer ISE in 1993; Henning joined him there in 1994. Henning initially worked on solar cooling systems, later turning to energy- efﬁcient buildings, heat pumps and systems-level questions. He recognized early on that thinking in terms of individual technologies would not be sufﬁcient to drive the energy transition. As early as the 2000s, he developed a cross-sector energy system model to optimize transition pathways for the energy transition. Fraunhofer ISE is continuing to develop the energy system module REMod, which is currently being expanded across Europe. Hans-Martin Henning Emeritus Director of the Fraunhofer Institute for Solar Energy Systems ISE | Emeritus Professor of Solar Energy Systems | University of Freiburg | Member of the advisory committee for the energy research program of the German Federal Ministry for Economic Affairs and Energy l r e h a M k r i D / E S I r e f o h n u a r F : o t o h P Solar hybrid modules on the roof of the Stühlinger city hall in Freiburg generate electricity and heat Photo: Fraunhofer ISE “Climate action must be central to any national development strategy.” Hans-Martin Henning 88

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information Technology transfer activities Technology transfer paths 1 2 3 4 5 6 7 Contract research Intellectual property Spin-offs Standardization Knowledge transfer through people Infrastructure services Science communications Putting research into practice: Results that find their place in industry and society Turning scientiﬁc ﬁndings into practical applications for industry and society is the Fraunhofer-Gesellschaft’s deﬁn- ing objective in Germany’s specialized research landscape. The Fraunhofer institutes have spent more than 75 years fulﬁlling their responsibility to translate technological knowledge into practical application in cooperation with partners from industry and science. This results in innova- tive applications, services and products that beneﬁt people and markets. Turning knowledge into impact requires transfer paths that are both clearly structured and differentiated. These paths guide the journey from research to real-world application —because research creates social and economic value when it is put into practice. Click here for the Fraunhofer transfer paths 8989 IMPACT for INDUSTRY and SOCIETY

2025 annual report Fraunhofer-Gesellschaft Selected transfer activities Foreword Contents Executive board’s report Senate’s report 1 Transfer path Contract research 2 Transfer path Intellectual property 3 Transfer path Spin-offs Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities New technologies for defense wearables Two areas helped stabilize Germany’s economic strength in 2025: firstly, rapid developments in AI, and secondly, growth in the defense industry, supported by the Off-Budget Fund for the Bundeswehr. In 2025, Rheinmetall, the market leader in the defense sector, commissioned 16 Fraunhofer institutes to carry out further research and development work with a total volume of €10.7 million. Ceramics and metal from a 3D printer Multi-material jetting (MMJ) technology makes it possible to pro- duce multi-material components by 3D printing. The Fraunhofer Institute for Ceramic Technologies and Systems IKTS has developed a special process that enables multi-material printing with ceramic and metallic materials. This facilitates the production of compo- nents that previously could only be manufactured using complex, multi-stage processes—if at all. Finances About Fraunhofer Publisher’s information One of the largest contracts went to the Fraunhofer Institute for Reliability and Microintegration IZM for the development of electronic clothing for military applications. In the STILEX project, researchers are developing textile-based, stretchable cable struc- tures that can be seamlessly integrated into military uniforms and clothing systems to improve the wearer’s comfort and freedom of movement. These novel textile cables reduce interference and increase the wearer’s safety in the field. The project is also estab- lishing an interlayer concept that standardizes energy and sensor connections through multiple layers of clothing and enables different smart textile components to be connected in modular form. The project addresses specific use scenarios in challenging operational environments. STILEX is thus transforming technology transfer activities based on Fraunhofer-research into an industrial value chain and delivering tangible, scalable solutions for modular wearables in the defense industry. With the establishment of AMAREA GmbH in 2023, Fraunhofer IKTS transferred its powerful MMJ technology from the laboratory to a highly dynamic spin-off that offers its customers highly flexible and particularly resource-efﬁcient manufacturing processes for multi-material components and the associated materials. In 2025, AMAREA GmbH launched the MMJ ProX 3D printer, which oper- ates without tools and can signiﬁcantly reduce waste. The spin- off’s parent institute Fraunhofer IKTS acquired one of the printers in order to open up further ﬁelds of application for ceramic 3D printing. The new application is expected to beneﬁt companies in aerospace, electronics, mechanical engineering, energy and medi- cal technology in particular, as well as the jewelry and watchmak- ing industries. These are all ﬁelds in which the greatest possible design flexibility, multifunctional performance and the integration of different material properties are essential. This technology transfer won Fraunhofer IKTS and AMAREA GmbH the 2025 Saxon Transfer Award in the patent commercialization category. A toothpaste tube full of innovation Periodontitis is one of the most common infectious diseases in humans. Caused by an imbalance in the oral microbiome, it affects roughly one in two adults in Germany. A solution may now be within reach in the form of a new ingredient, S-0636, discovered during an EU project in which the Fraunhofer Institute for Cell Therapy and Immunology IZI in Halle took part. In 2019, Mirko Buchholz and Pierre Tangermann took the leap of founding a spin-off with this patented substance. Since then, PerioTrap Phar- maceuticals GmbH has been developing the microbiome modu- lator, which selectively inhibits harmful bacteria while supporting healthy bacteria to maintain a natural microbiome. The spin-off is also working with Fraunhofer IZI, the Fraunhofer Institute for Microstructure of Materials and Systems IMWS and other partners to develop another product for advanced stages of the disease. The idea is to deliver an already approved antibiotic directly into inflamed periodontal pockets using short threads. The company gained market traction through pitch competitions and funding rounds. After raising €3 million at the end of 2020, PerioTrap secured a further €2.7 million in early 2025, including more than €1 million from crowdinvesting. PerioTrap microbiome toothpaste for home use and a prophylactic gel for use in dental practices have been available at several pharmacies in Halle and online (apozilla.de) since mid-2025. 90

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information 4 Transfer path Standardization 5 Transfer path Knowledge transfer through people DIN 35255: quality in composite processes DIN 35255, “Quality requirements for composite processes,” makes an important contribution to industrial standardization in lightweight design. Supported by the German Institute for Standardization (DIN), the standard was developed at the initiative of the Fraunhofer Institute for Manufacturing Technology and Advanced Materials IFAM in collaboration with industry partners and published at the end of October 2025. Fiber-reinforced composites are key materials in lightweight design and are used for instance in automotive manufacturing, aviation, rail vehicles, shipbuilding and wind turbines. Processing these materials is technically challenging, which means that speciﬁc quality requirements must be deﬁned in accordance with DIN EN ISO 9001. The new standard builds on the successful DIN EN ISO 21368 for quality assurance in adhesive bonding technology, to which Fraunhofer IFAM also made a major contribution. Core ele- ments include the classiﬁcation of composite components accord- ing to safety requirements, requirements for qualiﬁed personnel (composite supervisors) and process safety veriﬁcation, which requires that actual loads may never exceed the maximum permis- sible. DIN 35255 is the ﬁrst standard to deﬁne the state of the art for organizing, implementing and assuring the quality of ﬁber- reinforced composite processes. With this, it lays the foundation for reliable, consistent quality in industrial applications. 5.1 Continuing education for industry specialists and managers Security champions for enhanced cyber resilience The Bitkom study 2024 Economic Protection reported €178.6 bil- lion in losses as a result of cybercrime. Ransomware and phishing were the most common types of attack, while 74 percent of companies were victims of data theft. In order to strengthen cyber resilience in an increasingly connected world, the Fraunhofer Institute for Mechatronic Systems Design IEM developed the intensive Certiﬁed Security Champion Training program for secure software. More than 700 participants in 7 countries have under- gone training in secure software development since 2022. As part of the Fraunhofer Cybersecurity Training Lab, this intensive part-time program is aimed not only at large corporations but was also designed with small and medium-sized enterprises in mind. The blended learning program consists of four blocks and runs for around 13 weeks. Part of the training takes place at Fraunhofer IEM in Paderborn. The program combines lectures, interactive exer- cises and self-study phases. The course can take the form of open training or in-house training for developer teams. The continuing education program concludes with an optional hackathon and an examination leading to the qualiﬁcation of security champion. Successful participants receive a certiﬁcate from the Fraunhofer Personnel Certiﬁcation Authority showing their examination result. Fraunhofer IEM trainers also adapt the training for individual com- panies or evaluate the security status of the company’s software by performing a software security assessment. 5.2 Individuals and careers Training for positions of responsibility In 2025, around 2,250 people left Fraunhofer to pursue their careers further—in industry, research or their own independent endeavors. One key aspect of Fraunhofer’s mission is the training phase that scientiﬁc staff in particular complete during their period of employment with Fraunhofer. Fraunhofer had a 10.3 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. Approximately 70 percent of these departing employees said they were moving on to roles in industry. 91

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information 6 Transfer path Infrastructure services 7 Transfer path Science communications Hydrogen Lab Bremerhaven To expand renewable energy and establish hydrogen production through water electrolysis, it is essential to integrate the required systems into a cohesive unit. A well-deﬁned, compatible perfor- mance of individual components in hybrid wind-photovoltaic- hydrogen systems is a key requirement for developing flexible and stable power supply systems. The ERDF-funded Hydrogen Lab Bremerhaven, part of the Fraunhofer Institute for Wind Energy Systems IWES, provides a unique test environment that offers numerous opportunities to explore this interplay across a wide range of scenarios. The ﬁrst major industrial test campaign was launched in 2026 together with Shell Global Solutions. The partners in the EnergyHyNet project are investigating the integration challenges that arise when renewable energy sources and electrolyzers are coupled with weak grid con- nections. To that end, the capabilities of the Hydrogen Lab Bremer- haven are combined with the PQ4Wind converter test bench and a wind-turbine/converter test bench. Special operating scenarios include, for example, tests to assess the influence of available grid short-circuit power and system operation during temporary voltage disturbances in the power grid (fault ride-through tests). The space community meets heavy metal Premiere for Fraunhofer at Wacken Open Air | W:O:A 2025: The organizers of Wacken Open Air added a space camp to the program of Germany’s largest heavy metal festival, which attracts around 85,000 fans each year. Insights into current projects and challenges in spaceflight and space research were provided by the Fraunhofer SPACE & AVIATION Alliance together with the Public Liaison Office, the German Aerospace Industries Association (BDLI) with partners including ArianeGroup and OHB, the German Society for Aeronautics and Astronautics (DGLR) and the German Astro- nomical Society, represented by members such as the Max Planck Institute for Radio Astronomy. For six days, the Fraunhofer crew was on hand in rain boots to speak with festivalgoers who were both curious and well informed. The tent featured exhibits including a model of the ERNST Earth observation satellite and Rudi, the stuffed vulture from the GAIA initiative (see page 64), which combines AI and satellite commu- nication with species conservation. After the event, Fraunhofer calculated that there had been around 18,000 visitors, includ- ing many distinguished guests. The AVIATION & SPACE Alliance likened the outreach impact to that of major trade show locations such as Hannover. Wacken proved to be a popular leisure desti- nation for space enthusiasts of all ages. A broad cross-section of the scientific community, spanning disciplines from rocket science and neuroscience to geoscience, gathered on the muddy festival ground, a setting quite different from the usual conference venues. This unusual dialogue format turned out to be a highly successful experiment. 92

2025 annual report Fraunhofer-Gesellschaft Key ﬁgures on transfer activities in 2025 Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Pioneering achievements Initiatives, structures, funding programs Projects and results Awards People behind the research Technology transfer activities Finances About Fraunhofer Publisher’s information €768 million from national and international industry contracts 29 spin-offs 83 shareholdings 1,464 standardization activities €198 million in license-fee revenue from industry around 7,000 active patent families 589 reported inventions 538 patent applications over 8,000 participants in continuing education programs €8.1 million in revenue from continuing education programs offered by the Fraunhofer Academy 13,439 contributions according to media resonance analysis 6,020 million contacts (reach) 93

Finances 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances Balance sheet Income statement Excerpts from the notes to the ﬁnancial statements Auditor’s report About Fraunhofer Publisher’s information 94 94

2025 annual report Fraunhofer-Gesellschaft Balance sheet Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances Balance sheet Income statement Excerpts from the notes to the ﬁnancial statements Auditor’s report About Fraunhofer Publisher’s information Balance sheet at December 31, 2025 ASSETS A. Noncurrent assets I. Intangible assets II. Property, plant and equipment III. Financial assets B. Current assets I. Inventories II. Accounts receivable and other current assets 1. Trade receivables 2. Receivables from the federal and state governments 3. Accounts receivable from afﬁliated companies 4. Other current assets III. Other securities IV. Cash and cash equivalents C. Prepaid expenses and deferred charges Total assets Trust assets EQUITY AND LIABILITIES A. Equity I. Nonproﬁt organization capital II. Reserves for statutory purposes B. Extraordinary items 1. License-fee revenue reserve for statutory purposes 2. Grants relating to noncurrent assets 3. Financing of current assets 4. Payments from patent sales 5. Financing restructuring measures C. Provisions D. Liabilities 1. Trade payables 2. Unappropriated grants from the federal and state governments 3. Accounts payable to afﬁliated companies 4. Other current liabilities E. Accrued expenses and deferred income Total assets Trust liabilities 2025 in T€ 3,242,964 25,319 3,168,507 49,138 1,497,524 228,486 1,013,064 242,476 657,047 1,071 112,470 231,247 24,727 68,352 4,808,840 35,318 in T€ 15,741 15,741 – 3,703,442 231,366 3,231,223 222,443 18,410 – 354,188 729,276 98,397 598,456 5,646 26,777 6,193 4,808,840 35,318 Previous year in T€ 3,157,935 31,662 3,080,422 45,851 1,621,755 99,834 1,180,130 255,129 815,348 373 109,280 323,566 18,225 56,739 4,836,429 77,477 in T€ 15,701 15,689 12 3,687,095 328,766 3,146,846 175,473 26,023 9,987 394,354 732,478 80,295 624,305 992 26,886 6,801 4,836,429 77,477 95

Income statement 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances Balance sheet Income statement Excerpts from the notes to the ﬁnancial statements Auditor’s report About Fraunhofer Publisher’s information Income statement for the 2025 financial year 1. Revenue from base funding 2. Revenue from own activities Revenue Work in progress, inventory increase (+) / inventory decrease (–) Other revenue 3. License-fee revenue reserve, increase (–) / decrease (+) Total revenue 2025 in T€ Previous year in T€ 1,177,898 2,346,610 2,082,413 198,969 65,228 97,400 3,621,908 1,116,283 2,302,155 2,175,851 67,570 58,734 43,472 3,461,910 4. Personnel expenses 2,105,643 2,055,278 5. Cost of materials 6. Other operating expenses 7. Interest and similar expenses 8. Amortization of intangible assets and depreciation of property, plant and equipment 9. Write-downs of ﬁnancial assets and securities classiﬁed as current assets 10. Change in extraordinary items Grants relating to noncurrent assets, depreciation and amortization (–) Grants relating to noncurrent assets, capital expenditure (+) Financing of current assets, increase (+) / decrease (–) Financing restructuring measures, increase (+) / decrease (–) Total expenditure 11. Net income for the year 12. Change in reserves for statutory purposes 13. Annual result 14. Allocation to nonproﬁt organization capital 448,364 503,902 505 430,153 3,046 -432,902 526,172 46,970 -9,986 3,621,867 40 12 52 -52 495,938 477,677 384 418,958 1,793 -420,586 584,230 -144,954 -6,859 3,461,859 51 0 51 -51 96

2025 annual report Fraunhofer-Gesellschaft Excerpts from the notes to the ﬁnancial statements Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances Balance sheet Income statement Excerpts from the notes to the ﬁnancial statements Auditor’s report About Fraunhofer Publisher’s information 1. General disclosures Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e. V., headquartered in Munich, is a nonproﬁt organiza- tion registered with the local court of Munich under the reference code VR 4461. The annual ﬁnancial statements for the year ending December 31, 2025, are prepared voluntarily, taking into account the principles of German commercial law and in accordance with the organiza- tion’s constitution as a nonproﬁt organization and grant recipient. The regulations for large corporations under German commercial law are applied. The income statement was prepared in accordance with the total cost method. The basis of the Fraunhofer-Gesellschaft’s accounting method is the performance statement, from which the annual ﬁnancial state- ments are derived. The performance statement is adapted to the requirements of the public funding authorities in terms of format and reconciliation. It provides a breakdown of operating expenses and capital expen- diture at three different levels: individual institutes, headquarters and the organization as a whole. The components of the operating budget are presented as revenue or expenses in accordance with generally accepted accounting principles. Capital expenditure on property, plant and equipment and on ﬁnancial assets, on the other hand, is recognized at cost on acquisition of the assets. Therefore, the operating budget does not include any depreciation and amortization expenses on these items. In order to account for grants received from grant authorities, the performance statement for the organization as a whole is recon- ciled to the statement of receipts and expenditures by eliminating the effect of cash-neutral revenue and expense items. The income statement includes these changes in payables and receivables over the previous year as well as depreciation and amortization charges. In the balance sheet, these reconciliation items are includ- ed under the extraordinary items “Financing of current assets” and “Grants relating to noncurrent assets.” In the management report, the ﬁgures are explained separately according to the three areas of contract research, additional research funding and major infrastructure. In 2025, the order of the items in the income statement was adjusted to improve the clarity and transparency of the annual ﬁnancial statements in accordance with section 265(6) German Commercial Code (Handelsgesetzbuch, HGB). Annual financial statements of the Fraunhofer-Gesellschaft Balance sheet Management report Notes to the ﬁnancial statements Income statement Reconciliation between income statement and performance statement Performance statement Reconciliation to the statement of receipts and expenditures Operating budget and capital expenditure at Fraunhofer-Gesellschaft “Total business volume” level Separate ﬁnancial statements of the institutes/headquarters Operating budget Capital expenditure budget Costs (excluding depreciation and amortization) Revenue Expenses Revenue 97

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances Balance sheet Income statement Excerpts from the notes to the ﬁnancial statements Auditor’s report About Fraunhofer Publisher’s information 2. Recognition and measurement methods Intangible assets and property, plant and equipment are measured at amortized cost, i.e., the cost of acquisition or production less depreciation and amortization calculated on a straight-line basis. Intangible assets are amortized over a useful life of three years. Institute buildings on Fraunhofer and third-party land are depreci- ated 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 5 years is applied to movable items of property, plant and equipment. However, a useful life of 4 years is assumed for communication, video and audio systems, and 3 years for IT hardware. Motor vehicles are depreciated over a useful life of 4 years. Financial assets are recognized at cost. Where the reduction in value is expected to be permanent, write-down to the lower fair value is recognized. 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 correspond- ing to the depreciation and amortization of these assets. Therefore, these adjustments have no impact on the income statement. Raw, auxiliary and operating materials reported under inventories are recognized at acquisition or manufacturing cost or at fair value. In the 2025 ﬁscal year, inventories were recognized for the ﬁrst time; these were recorded as part of a physical inventory taken as of the reporting date. Initial measurement was carried out using the FIFO method, applying the strict Lower of Cost or Market method. 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 charges. Advance payments received (including VAT) are openly deducted under inventories. Trade receivables and other assets are recognized at their nominal 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 measured at cost or, on the reporting date, at lower fair value. 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 in the balance sheet as prepaid expenses and deferred charges. The Fraunhofer-Gesellschaft makes use of the instrument 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. Provisions for pensions for which the Fraunhofer-Gesellschaft has a reinsurance policy in place are measured on the basis of the capitalized amount calculated by R+V Lebensversicherung AG 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 earnings 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 rec- ognized as a provision is calculated 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 calculating current single premiums). A 10-year-aver- age actuarial interest rate of 2.06 percent was used in the calcula- tion in accordance with section 253(2) of the German Commercial Code (Handelsgesetzbuch, HGB), along with the 2018 G Heubeck guideline tables. Other provisions comprise amounts set aside to cover all identiﬁ- able risks and contingent liabilities. These provisions are measured in accordance with section 253(1) HGB on the basis of a reason- able 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 2025, pursuant to section 253(2) HGB. Provisions for partial retirement are calculated on the basis of the policies already concluded. 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 accrued expenses and deferred income. Amounts recognized for transactions in foreign currencies are translated at the applicable hedging rates of the respective curren- cies. 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 sep- arate line at the foot of the Fraunhofer-Gesellschaft balance sheet. 98

2025 annual report Fraunhofer-Gesellschaft Convenience translation of the German independent auditor’s report Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances Balance sheet Income statement Excerpts from the notes to the ﬁnancial statements Auditor’s report About Fraunhofer Publisher’s information This is a convenience translation of the German auditor’s report. Solely the original text in the German language is authoritative. The auditor’s report is based on the balance sheet at December 31, 2025, the income statement for the 2025 ﬁnancial year and the full notes to the 2025 ﬁnancial statements and the 2025 manage- ment report. “To Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e. V., Munich Audit opinion We have audited the annual ﬁnancial statements prepared by Fraunhofer-Gesellschaft zur Förderung der angewandten For- schung e. V., Munich, comprising the balance sheet as at Decem- ber 31, 2025, the income statement for the ﬁnancial year from January 1 to December 31, 2025, and the notes to the ﬁnancial statements, including the presentation of the applied recognition and measurement methods. In addition, we have audited the management report of Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e. V., Munich, for the ﬁnancial year from January 1, 2025, to December 31, 2025. According to our opinion, as based on the results of the audit: The attached annual ﬁnancial statements comply in all material respects with the provisions of the German Commercial Code (Handelsgesetzbuch, HGB) as applicable to large corporate enti- ties, the organization’s statute, and those of German generally accepted accounting principles (GAAP). Together, this informa- tion presents a true and fair view of the organization’s net assets and ﬁnancial position as at December 31, 2025, and of its operating results for the ﬁnancial year commencing January 1, 2025, and ending December 31, 2025. The attached management report provides a true and fair view of the organization’s current operating situation. In all material respects, the management report is consistent with the annual ﬁnancial statements, complies with German statutory require- ments and provides an appropriate picture of the organization’s future opportunities and risks. In accordance with section 322(3) sentence 1 HGB, we declare that our audit of the annual ﬁnancial statements and management report did not lead to any reservations/observations. Basis for opinion We conducted our audit of the annual ﬁnancial statements and the management report in accordance with section 317 HGB and the German generally accepted standards for the audit of ﬁnan- cial statements set by the Institute of Public Auditors in Germany (IDW). Our responsibilities under those standards are further described below under the heading “Auditors’ responsibility for the audit of the annual ﬁnancial statements and management report.” We declare that we are independent auditors as deﬁned by German commercial law and that we exercise our other duties in Germany in compliance with the relevant professional code of conduct, with no other connection to or interests in the Fraunhofer-Gesellschaft. It is our considered opinion that the audit evidence we have obtained is sufﬁcient and appropriate to provide a basis for our opinion on the annual ﬁnancial statements and the management report. Responsibility of the legal representatives and the senate for the annual financial statements and management report The legal representatives are responsible for preparing the annual ﬁnancial statements in accordance with the provisions of the HGB as applicable to large corporate entities, and for ensuring that they 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. Furthermore, the legal representatives are responsible for carrying out internal audits to the extent that these are considered necessary to comply with German GAAP, as a basis for preparing annual ﬁnancial statements in such a way that they are free of material misstatements, wheth- er due to fraud (i.e., fraudulent accounting manipulations and misappropriations of assets) or error. 99

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances Balance sheet Income statement Excerpts from the notes to the ﬁnancial statements Auditor’s report About Fraunhofer Publisher’s information In preparing the annual ﬁnancial statements, the legal representa- tives are also responsible for determining the organization’s ability to continue operating as a going concern, which includes disclos- ing any relevant information concerning this 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 requirements, and provision of sufﬁcient appropriate evidence for the statements made in the management report. The senate is responsible for monitoring the organization’s accounting process for the preparation of the annual ﬁnancial statements and management report. 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 wheth- er the management report as a whole provides 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 orga- nization’s future development 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 section 317 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 made by the reader on the basis of the annual ﬁnancial statements or management report. Throughout the audit process, we exercise professional judgment and maintain a neutral but critical attitude. We also: Identify and assess the risks associated with material misstate- ments in the annual ﬁnancial statements and management 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 substanti- ate our audit opinion. The risk that a material misstatement resulting from fraudulent activities is not detected is higher than the risk that a material misstatement resulting from errors is not detected since fraudulent activities may involve collusion, forgery, intentional omissions, misleading representations, or the override of internal controls. Familiarize ourselves with the internal controls and other instru- ments and measures insofar as they affect the auditing of the annual ﬁnancial statements and management report, in order to design audit procedures that are appropriate in the circum- stances. However, it is not the purpose of the audit to judge the effectiveness of the organization’s internal controls or of these instruments and measures. Assess the appropriateness of the accounting principles applied by the legal representatives and the extent to which their esti- mated 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 uncertainties 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 comments are inappropriate, it is our duty to modify our audit opinion accord- ingly. 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 organization to cease to continue as a going concern. Verify that the overall presentation, structure and content of the entire annual ﬁnancial statements, including the disclosures and the presentation of underlying business transactions 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. 100

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances Balance sheet Income statement Excerpts from the notes to the ﬁnancial statements Auditor’s report About Fraunhofer Publisher’s information Conﬁrm that the management report complies with the annual ﬁnancial statements, meets legal requirements and conveys a true image of the organization’s situation. Perform audit procedures on the prospective information presented by the legal representatives in the management report. On the basis of sufﬁcient appropriate audit evidence we evaluate, in particular, the signiﬁcant assumptions used by man- agement as a basis for the prospective information and evaluate the proper derivation of the prospective information from these assumptions. We have not provided an independent audit opin- ion on the prospective information or the data on which it is based. There is a substantial unavoidable risk that future events will differ materially from the prospective information. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and signiﬁcant audit ﬁndings, including any signiﬁcant deﬁciencies in internal controls that we identify during our audit. Nuremberg, April 16, 2026 Rödl Audit GmbH Wirtschaftsprüfungsgesellschaft Signature: Grässle Auditor Signature: Horst Auditor (End of convenience translation of the German auditor’s report.)” 101

About Fraunhofer 2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Structure Members, governing and advisory bodies Locations Publisher’s information 102

2025 annual report Fraunhofer-Gesellschaft Structure of the Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Structure Members, governing and advisory bodies Locations in Germany Publisher’s information Governance: governing and advisory bodies The executive board of the Fraunhofer-Gesellschaft consists of the president and up to four other full-time members. Its duties include managing the Fraunhofer-Gesellschaft and establishing the essential elements of its strategy, particularly in the areas of research, transfer, major infrastructure, human resources and ﬁnances. The executive board ensures, within the scope of its responsibilities under the statutes, that these are observed, and shapes the Fraunhofer corporate culture with its values and posi- tions on issues. It ensures that the research portfolio of the insti- tutes is coherent for the Fraunhofer-Gesellschaft as a whole, and creates the conditions for the lawful, proper and cost-effective management of the organization’s activities and those of its insti- tutes and other research units. The executive board ensures that these are observed through actions including but not limited to enacting guidelines and establishing the relevant control systems. The executive board acts as a collective body. The president rep- resents the organization both internally and externally and coordi- nates the work of the executive board. The senate comprises up to 26 voting members from the worlds of industry, science and public life, representatives of the federal and state governments, and members of the scientiﬁc and techni- cal council (STC). The senate functions as a supervisory and adviso- ry body to the executive board of the Fraunhofer-Gesellschaft. Its responsibilities include appointing the president and other mem- bers of the executive board. The adoption of the ﬁnancial plan, including the ﬁnancial planning, the establishment of the central elements of the science and research strategy, and the research and expansion planning are subject to the approval of the senate. It also handles the establishment, transformation or dissolution of research units belonging to the Fraunhofer-Gesellschaft. The general meeting is made up of the members of the Fraunhofer-Gesellschaft. Ex ofﬁcio membership is open to mem- bers of the senate and the executive board, institute directors and senior managers, and members of the boards of trustees. Appli- cations for ordinary membership may be submitted by individuals and legal entities who wish to support the work of the Fraunhofer- Gesellschaft. Honorary members may be elected from among the research staff and patrons of the Fraunhofer-Gesellschaft in rec- ognition of outstanding services to the organization. The general meeting elects the members of the senate, discharges the execu- tive board and senate of their functions and formulates decisions concerning amendments to the statutes. The scientific and technical council (STC) is the organization’s internal advisory committee. It consists of the directors and senior managers of the institutes and an elected representative of the scientiﬁc and technical staff of each institute. The STC advises the governing and advisory bodies on scientiﬁc and technical matters of essential importance. It makes recommendations concerning the central elements of the Fraunhofer-Gesellschaft’s science and research strategy and strategic HR development, expresses its opin- ions regarding the establishment of new institutes or the closure of existing institutes, and participates in the appointment of new institute directors. There are currently 74 institutes and independent research units working under the umbrella of the Fraunhofer-Gesellschaft at locations throughout Germany. They are the entities responsible for carrying out the Fraunhofer-Gesellschaft’s research work, and each one cultivates its own market presence and manages its own budget. They do not generally have their own legal capacity, so they manage their activities in line with the overall Fraunhofer strategy and the planning and management processes established by the executive board. They can form groups based on specific areas of expertise and be tasked with coordinating their research within the Fraunhofer-Gesellschaft and harmonizing the market presence of the respective group members. The chairs of these groups, together with the executive board and the chair of the Segment for Defense and Security VVS, form the presidential council of the Fraunhofer-Gesellschaft. The pres- idential council participates in executive board decision-making processes, supports the implementation of the executive board’s decisions, and is entitled to make proposals and recommendations to and has the right to be heard by the board. The boards of trustees are external advisory bodies of the insti- tutes. They include representatives from the science, industry and public sectors, who are appointed by the executive board. The boards of trustees advise the institute management, the executive board and, if necessary, the other governing and advisory bodies of the organization on matters including the institute’s scientiﬁc and entrepreneurial alignment and any structural changes at the institute. Report valid as at January 2026 103

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Structure Members, governing and advisory bodies Locations in Germany Publisher’s information Structure of the Fraunhofer-Gesellschaft Senate appoints advises supervises Executive board (collective body) advises Scientific and technical council (STC) elects a part discharges advises delegate General meeting Presidential council* Executive board members Group chairs organize themselves into Institutes and independent research units delegate advise Groups and VVS segment Boards of trustees Governing bodies Advisory bodies Research structures The Fraunhofer-Gesellschaft is organized as one legal entity; all institutes are therefore legally dependent. Legal form: association registered under German law (e. V.) Tax status: nonproﬁt * Advisory committee, not an extended executive board 104

2025 annual report Fraunhofer-Gesellschaft Members, governing and advisory bodies Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances Members The Fraunhofer-Gesellschaft has 1,103 members, comprising legal entity members, 74 natural person members, 1,001 ex ofﬁcio members and 6 honorary members. Some members have multiple functions. Honorary members Peter Draheim About Fraunhofer Structure Members, governing and advisory bodies Locations in Germany Dr.-Ing. Horst Nasko Dr. Dirk-Meints Polter Publisher’s information Prof. Dr.-Ing. Dr.-Ing. E.h. Dr. h. c. Ekkehard D. Schulz Dr. rer. pol. Hans-Ulrich Wiese Dr. jur. Markus Söder Kerstin Grosse Deputy Chair of the Senate of the Fraunhofer- Gesellschaft, Managing Director of DEROSSI Invest GmbH Prof. Dipl.-Ing. Oliver Zipse Deputy Chair of the Senate of the Fraunhofer- Gesellschaft, Chairman of the Board of Management of BMW AG Dr. Annette Beller Member of the Administrative Board of GFT Technologies SE Dr.-Ing. Oliver Blume Chairman of the Board of Management of Volkswagen AG, Chairman of the Executive Board of Dr. Ing. h.c. F. Porsche AG Prof. Dr. phil. Anja Reinalter Member of the German Federal Parliament (Bundestag) and Parliamentary Business Manager of the Alliance 90/The Greens Parliamentary Group, Professor of Social Work at Kempten University of Applied Sciences Sönke Rix (until March 31, 2025) Member of the German Federal Parliament (Bundes- tag) and Deputy Chair of the Social Democratic Party (SPD) Bundestag Parliamentary Group Prof. Dr. rer. nat. Dr. h. c. mult. Ulrich Rüdiger Rector of RWTH Aachen University Dr.-Ing. Karl Tragl Chairman of the Executive Board and Chief Executive Ofﬁcer of Wacker Neuson SE Dr. rer. nat. Roland Busch President and Chief Executive Ofﬁcer of Siemens AG Grazia Vittadini Lufthansa Chief Technology Ofﬁcer and Member of the Executive Board Senate Members from the science and industry communities, and from public life Otto Fricke Chair of the Board of Directors of the German Olympic Sports Federation (DOSB) Dr.-Ing. Anna-Katharina Wittenstein Member of the Supervisory Board of WITTENSTEIN SE Hildegard Müller Chair of the Senate of the Fraunhofer- Gesellschaft, President of Verband der Automobilindustrie e. V. (VDA) (German Association of the Automotive Industry) Sabine Herold Managing Partner of DELO Industrie Klebstoffe GmbH & Co. KGaA Bernard Meyer Chair of the Management Board of the Meyer Neptun Foundation Prof. Vanessa Wood Ph. D. Vice President for Knowledge Transfer and Corporate Relations of ETH Zurich Members representing government institutions Representatives at federal level State Secretary Stephan Ertner (until July 28, 2025) German Federal Ministry of Education and Research (BMBF) Parliamentary State Secretary Matthias Hauer (from July 29, 2025) German Federal Ministry of Research, Technology and Space (BMFTR) Undersecretary Dr. Ole Janssen German Federal Ministry for Economic Affairs and Energy (BMWE) Undersecretary Alexander Schott German Federal Ministry of Defence (BMVg) Undersecretary Rita Schutt German Federal Ministry of Finance (BMF) Representatives at federal state level State Secretary Tobias Gotthardt Bavarian Ministry of Economic Affairs, Regional Development and Energy (StMWi) Deputy Director General Katharina Heil Ministry of Science and Health of Rhineland-Palatinate 105

2025 annual report Fraunhofer-Gesellschaft Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Structure Members, governing and advisory bodies Locations in Germany Publisher’s information State Secretary Guido Wendt Ministry of General Education and Vocational Training, Science, Research and Culture of Schleswig-Holstein Dipl.-Phys. Doris Rösler Chair of the Fraunhofer-Gesellschaft Central Works Council, Fraunhofer Institute for Building Physics IBP Members delegated by the scientific and technical council (STC) Prof. Dr. Elizabeth von Hauff Director of the Fraunhofer Institute for Electron Beam and Plasma Technology FEP Prof. Dr.-Ing. Peter Ohlhausen Head of Research Coordination at the Fraunhofer Institute for Industrial Engineering IAO, Deputy Chair of the STC Prof. Dr. Anita Schöbel Director of the Fraunhofer Institute for Industrial Mathematics ITWM Chair of the STC Honorary senator Prof. Dr.-Ing. Dr.-Ing. E. h. Dr. h. c. Ekkehard D. Schulz Permanent guests State Secretary Susanne Bowen Ministry of Science, Culture, Federal and European Affairs of Mecklenburg-Vorpommern Boards of trustees In total, the boards of trustees of the institutes consist of 885 members, some of whom hold seats on several boards of trustees. Scientific and technical council (STC) The STC has 179 members, 104 of whom are delegated institute directors, while 75 are elected representatives of the scientific and technical staff. Chair of the STC: Prof. Dr. Anita Schöbel Director of the Fraunhofer Institute for Industrial Mathematics ITWM Presidential council The presidential council of the Fraunhofer- Gesellschaft is made up of the members of the executive board and the chairs of the Fraunhofer groups, named below: Prof. Dr. Andrea Büttner Fraunhofer Group for Resource Technologies and Bioeconomy State Secretary Tobias Dünow Ministry of Science, Research and Culture of the State of Brandenburg Prof. Dr. Karsten Buse Fraunhofer Group for Light & Surfaces Minister Dr. Nicole Hoffmeister-Kraut Ministry of Economic Affairs, Labour and Tourism of Baden-Württemberg Prof. Dr. Jakob Edler Fraunhofer Group for Innovation Research Prof. Dr. Dr. Gerd Geisslinger Fraunhofer Group for Health Prof. Dr.-Ing. Christoph Herrmann Fraunhofer Group for Production Prof. Dr. Albert Heuberger Fraunhofer Group for Microelectronics Executive board Prof. Dr.-Ing. Holger Hanselka (President and Chair of the Executive Board) Elisabeth Ewen Prof. Dr. rer. nat. Constantin Häfner Dr. rer. pol. Sandra Krey Prof. Dr. Bernd Mayer Fraunhofer Group for Materials and Components Prof. Dr. rer. nat. habil. Axel Müller-Groeling Prof. Dr.-Ing. Boris Otto Fraunhofer ICT Group Listed information valid as of December 31, 2025 Prof. Dr.-Ing. Andreas Reuter Fraunhofer Group for Energy Technologies and Climate Protection Presidential council member acting in an advisory capacity Prof. Dr.-Ing. Jürgen Beyerer Fraunhofer Segment for Defense and Security VVS Permanent guest Prof. Dr. Anita Schöbel Chair of the STC, Director of the Fraunhofer Institute for Industrial Mathematics ITWM 106

2025 annual report Fraunhofer-Gesellschaft Locations in Germany Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Structure Members, governing and advisory bodies Locations in Germany Publisher’s information Itzehoe Rostock Lübeck Bremerhaven Hamburg Bremen Hannover Braunschweig Berlin Potsdam Münster Paderborn Oberhausen Duisburg Dortmund Bochum Magdeburg Halle Cottbus Schmallenberg-Grafschaft Kassel Leipzig Dresden Aachen Sankt Augustin Wachtberg Jena Ilmenau Chemnitz Hanau Alzenau Frankfurt am Main Mainz Darmstadt Würzburg Erlangen Sulzbach Kaiserslautern Saarbrücken Karlsruhe Pﬁnztal Ettlingen Stuttgart Freiburg Augsburg Freising Garching München Holzkirchen Fraunhofer worldwide 107

2025 annual report Fraunhofer-Gesellschaft Publisher’s information Foreword Contents Executive board’s report Senate’s report Review of Fraunhofer research Finances About Fraunhofer Publisher’s information Published by Fraunhofer-Gesellschaft e. V. Holger Hanselka President and Chair of the Executive Board of the Fraunhofer-Gesellschaft Reproduction of any material requires the consent of the editorial team. © Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e. V., Munich 2026 Editorial team Thomas Eck (editor in chief) Tanja Schmutzer (managing editor) Eva Bachmann Mandy Bartel Laura Rottensteiner-Wick Editorial address Fraunhofer-Gesellschaft Hansastrasse 27 c, 80686 Munich, Germany Monika Landgraf (person responsible for content) Director of Corporate Communications and spokesperson for the president Hansastrasse 27 c 80686 Munich, Germany Phone +49 89 1205-1333 monika.landgraf@zv.fraunhofer.de Design Silke K. Schneider 108

The Fraunhofer-Gesellschaft’s 2025 annual report

Foreword

Contents

Executive board’s report

The executive board

2025 management report

Senate’s report

The senate’s report on the 2025 financial year

New senate members

Review of Fraunhofer research

Pioneering achievements

Initiatives, structures, funding programs

Projects and results

Awards

People behind the research

Technology transfer activities

Finances

Balance sheet

Income statement

Excerpts from the notes to the financial statements

Auditor’s report

About Fraunhofer

Structure of the Fraunhofer-Gesellschaft

Members, governing and advisory bodies

Locations in Germany

Publisher’s information