Introduction

The compensation system of the SFS Group strengthens the company by attracting, motivating and retaining talented individuals. It also takes into consideration the interests of the shareholders at the same time.

It rewards short-term achievements as well as the long-term success of the company. The Compensation Report contains detailed information about the compensation paid to the members of the Board of Directors and Group Executive Board in financial year 2024.

The report was prepared in accordance with the provisions of the Swiss Code of Obligations, which defines the regulations on remuneration for public listed companies, as well as with the provisions set forth in the Directive on Information relating to Corporate Governance issued by SIX Swiss Exchange AG and the Swiss Code of Best Practice for Corporate Governance. The report refers to the Articles of Association of the SFS Group.

Dear Shareholders
Over the next few pages, you will find the Compensation Report of the SFS Group for financial year 2024. This report was prepared in accordance with the applicable laws, regulations and provisions.

The Nomination and Compensation Committee (NCC) carried out its regular activities in the year under review, such as succession planning for the Board of Directors and the Group Executive Board, setting the performance targets at the start of the year and reviewing performance at the end of the year, determining the compensation to be paid to the members of the Board of Directors and the Group Executive Board and preparing the Compensation Report (see also “duties of the Nomination and Compensation Committee” in the Corporate Governance Report).

The benchmarking of the compensation system by the NCC is performed using the benchmark companies listed in the Compensation Report. The NCC concluded that the compensation system remains consistent with the general business strategy as well as the interests of the shareholders and is well-balanced. Therefore, no changes were made in 2024. We are confident that the compensation concept helps to generate the commitment to realize both financial and non-financial values in the long term and is finely tuned to the interests of our shareholders. We will also review and evaluate our compensation program in the future and will engage in an open dialog with our shareholders and their representatives.

Thank you for sharing your views on executive compensation with us. We trust that you will find this report informative.

Urs Kaufmann
Chair of the Nomination and Compensation Committee (NCC)