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 (BoD) and the Group Executive Board (GEB) for the 2025 financial year.

The report was prepared in accordance with 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. It also 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 the financial year 2025. The report was prepared in accordance with the applicable legal and regulatory requirements.

The Nomination and Compensation Committee (NCC) carried out its regular activities in the year under review, such as succession planning for the BoD and the GEB, 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 BoD and the GEB and preparing the Compensation Report (see also “Nomination and Compensation Committee” in the Corporate Governance Report).

The NCC benchmarks the compensation system against comparable companies, which are listed in this report. Based on this assessment, the NCC concluded that the compensation system remains consistent with the business strategy and the interests of the shareholders and is well balanced. Accordingly, no changes were made in 2025.

For the 2026 financial year, adjustments to the variable compensation of the GEB are planned. The performance criteria will be revised with the objective of linking management performance more closely to the economic success of the SFS Group and promoting sustainable value creation.

We are confident that the compensation concept supports commitment, promotes the sustainable creation of both financial and non-financial value, and is aligned with the interests of our shareholders. Going forward, we will continue to regularly review and assess our compensation program and maintain an open dialogue 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 NCC