2023 2024 2025 23 % Asia 7 % Americas 70 % Europe 72 % local 28 % non-local Regional distribution of the direct and indirect purchasing volume of the Festo Group. 2025 €1.519 bn 2025 €1.519 bn 23 % Asia 24 % Asia 8 % Americas 8 % Americas 69 % Europe 68 % Europe 72 % local 73 % local 28 % non-local 27 % non-local 2023 €1.558 bn 2023 €1.558 bn 2024 €1.536 bn 2024 €1.536 bn The number of local suppliers fell slightly in 2025, compared to the previous year. We continued to pursue the “local for local” strategy in 2025 in order to reduce, among other things, delivery times and improve flexibility throughout the supply chain and transportation routes. The objective is to continue to increase procurement of goods in those countries and regions where production also takes place. The graphs below show the regional distribution of the direct and indirect purchasing volume of the Festo Group as well as the proportion of local and non-local suppliers. Resources Regional distribution of the purchasing volume The direct and indirect purchasing volume (production materials and non-production materials) of Festo continued to decline slightly from EUR 1.536 billion (2024) to EUR 1.519 billion (2025). This is partly due to the economic situation. The non-production materials apply to all production sites (Festo Global Production Centers, GPCs for short) and the sales companies. The production materials are relevant for all production sites. Festo is constantly expanding its global supplier network, consisting of both local and non-local suppliers. By “local” we mean procurement within the region of a particular Festo national company. 45.7 % aluminium 25.0 % plastics 11.7 % stainless steel 14.6 % steel 1.5 % zinc 1.5 % brass Distribution of the purchase volume by material. 50.1 % aluminium 20.1 % plastics 12.0 % stainless steel 13.2 % steel 1.7 % zinc 2.9 % brass 49.7 % aluminium 23.7 % plastics 12.0 % stainless steel 10.7 % steel 1.7 % zinc 2.2 % brass At Festo, regional procurement and processes aligned with the circular economy form the core of our resource management. The goal is to use materials as efficiently as possible and to maintain stable, future-proof supply chains. Circular economy-oriented procurement For our company and our impact on the environment and people, it is crucial where we source our manufacturing materials from and with what specific material properties. In 2025, Festo purchased a total of 26,672 tons of raw materials. Plastics, aluminum and (stainless) steel are some of the most important materials in our production. Since resources are finite and their extraction pollutes the environment, it is important to develop comprehensive concepts to reduce material consumption. That is why we rely on, for example, methods based on the circular economy. One main focal point is aluminum. Because bauxite, the raw material for aluminum production, is a critical raw material that has significant environmental impacts. One approach is to increasingly replace primary aluminum with secondary aluminum. Festo achieved a secondary aluminum content of 78.1 percent in 2025. In Hungary, we go one step further. There, aluminum waste is melted down directly to produce the raw materials needed, thus bypassing various intermediate steps. We are currently testing the feasibility of using this technology at German sites. 1. Environment Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 26 27
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